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Apple gross margin on services rises to a new record high

Apple posted its quarterly earnings last night, with generally strong performance. One standout point was the company’s ability to continue to expand its gross margin on the ever-growing services division.

In fact, Apple recorded a new all-time high for gross margin on services this quarter, at 75.7%. That figure is based on costs of $6.46 billion on sales of $26.64 billion.

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Spotify has just submitted its app update including links out to the web for payment, here’s how it will change the experience

Following the Apple vs Epic ruling this week, developers are racing to take advantage of their new ability to link out to their own website to collect payments from user, with Apple no longer able to force them to use its in-app purchase system.

Spotify has just announced that it has submitted its app update to Apple for approval, including these changes. In a blog post, it details how it has been able to make the user experience better for users upgrading from free to paid memberships.

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Apple says Trump import tariffs will increase its costs by $900 million this quarter

On the quarterly earnings call today, Apple gave some color on the impact of tariffs on its business. Most notably Apple CEO Tim Cook said that in the current quarter, April through June, the company will see costs of about $900 million assuming the current tariff policy remains for the whole quarter.

Apple warned the figure could change — higher or lower — if administration changes tariff policy unexpectedly over the course of the quarter. It also said that costs in future quarters could be higher, still.

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Epic win against Apple, iPhone 17 Air dummy models, iOS 19 rumors

9to5mac happy hour

Benjamin and Chance react to the huge developments in the Epic vs. Apple case, with Apple now compelled to allow free rein links out to the web, with no commission. Also this week, we get our best look yet at the super-slim iPhone 17 Air, there are intriguing rumors about iOS 19 and iPadOS 19, and Apple quietly launches a bizarre new microsite on its website. 

And in Happy Hour Plus, understandably, Chance gives up on Mac support for HomePod audio output. Subscribe at 9to5mac.com/join.

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Epic Games targets Apple with zero-commission plan and App Store workaround

Less than 24 hours after Apple’s legal defeat over its App Store model, Epic Games is wasting no time. For starters, Fortnite is set to return to the iOS App Store in the U.S. next week. Under the court’s order, Apple can no longer block apps from directing users to the web to purchase digital content. I’s also barred from collecting a 27% commission on those web-based sales that originate from App Store apps.

Meanwhile, Epic Games has announced two new business moves — one of which takes direct aim at Apple’s in-app purchase revenue model.

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9to5Mac Daily: May 1, 2025 – Apple vs Epic injunction 

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Listen to a recap of the top stories of the day from 9to5Mac. 9to5Mac Daily is available on iTunes and Apple’s Podcasts appStitcherTuneInGoogle Play, or through our dedicated RSS feed for Overcast and other podcast players.

Sponsored by CardPointers: The best way to maximize your credit card rewards. 9to5Mac Daily listeners can exclusively save 30% and get a $100 Savings Card.

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Deals: M4 iPad Pro $250 off, HomeKit Secure Video smart cam, Powerbeats Pro 2 $75 off, more

This morning we have up to $250 in savings on M4 iPad Pro configs joined by the ongoing all-time lows on the new iPad (A16) from just $299 and the M3 iPad Air lineup at $100 off across the board. We also have ongoing offers on AirPods 4 and AirPods Pro 2, as well as the entire M4 MacBook Air lineup, but today we are featuring some notable deals on the Eve smart gear – one of the best prices to date on its Siri-ready smart weather station, its HomeKit Secure Video smart cam, and its Siri-controlled HomeKit wireless smart lamp. All of that and and a deal on the new Powerbeats Pro 2 are waiting below.

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Apple ordered to pay patent troll Optis $502M, despite threat to leave UK market

Apple ordered to pay patent troll Optis $502M, despite threat to leave UK market | Digital representation of a court gavel

Apple has been ordered to pay Optis $502M for the use of standards-essential 4G patents in both iPhones and cellular iPads. Interest also has to be paid, bringing the total due to over $700M.

The court ruled in favor of the patent troll, despite an unconvincing attempt by Apple’s lawyer to claim that the company might withdraw the iPhone from sale in the UK if it was forced to pay …

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