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Apple launches cheap iPhone to woo China

Apple launches budget-friendly iPhone 16e with AI features at $599 to reclaim market share in China and India.

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Apple launches budget-friendly iPhone 16e with AI features at $599 to reclaim market share in China and India.

In Short

Apple has introduced the budget iPhone 16e at $599, targeting mid-market customers in regions like China and India, and it features a 48-megapixel camera and strong AI capabilities. This new model aims to boost sales in price-sensitive markets, marking a shift from the SE naming and offering improved tech alongside USB Type-C charging compliance.

This device moves away from the SE naming and is designed to compete with popular Android smartphones featuring AI capabilities. Sales of Apple’s phones have declined recently, particularly in its budget segment.

Despite the price increase of $170 compared to the SE, the 16e boasts features akin to flagship models, powered by a strong chip that supports Apple Intelligence, which includes access to ChatGPT. It features a 48-megapixel camera without a wide-angle lens, a different display, and a notch for the front camera.

The 16e is expected to improve sales in price-sensitive markets as it provides a more affordable entry into Apple’s ecosystem. Analysts have noted that while demand for phone upgrades among existing users is slow, the new model lowers the cost barrier.

Major shift

It is equipped with the A18 chip and the new C1 modem for cellular connectivity, marking a shift from Qualcomm chips. Pre-orders for the 16e will begin on February 21, with shipments starting on February 28, and it will be available in black and white only.

Additionally, the 16e is set to adopt USB Type-C charging, aligning with EU regulations. The previous SE model is now discontinued in the EU, unable to meet new charging requirements.

Still, many Apple analysts are disappointed that the “new product” being teased by Apple is recent weeks was just another small incremental update to it’s lineup.

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OpenAI releases GPT-5.1 with enhanced conversational features

OpenAI launches GPT-5.1, enhancing ChatGPT with personality controls and improved conversational abilities for paid users

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OpenAI launches GPT-5.1, enhancing ChatGPT with personality controls and improved conversational abilities for paid users

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In Short:
– OpenAI launched GPT-5.1 with two models to improve ChatGPT’s conversation and user control.
– The update, initially for paid users, addresses prior complaints and introduces adaptive reasoning and personality presets.
OpenAI launched GPT-5.1 today, featuring two upgraded models aimed at enhancing ChatGPT’s conversational abilities and providing users better control over its personality.The update started rolling out to paid subscribers on November 12, introducing GPT-5.1 Instant and GPT-5.1 Thinking, both designed to address complaints regarding the original GPT-5 release in August.

GPT-5.1 Instant is said to be “warmer by default and more conversational,” with early testers noting its playfulness while remaining clear and useful.

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The launch follows a backlash from users after GPT-5’s release, who criticized its “colder” tone and the removal of previous models like GPT-4o. OpenAI’s CEO, Sam Altman, admitted that discontinuing GPT-4o “was a mistake” and acknowledged the emotional attachment users had to specific models.

Adaptive Reasoning

GPT-5.1 Instant introduces adaptive reasoning, which helps it determine when to “think before responding” to complex questions.

This leads to marked improvements in mathematical and coding tasks. GPT-5.1 Thinking adjusts processing time based on the task, resulting in clearer explanations and improved ease of use for various tasks.

The new version includes six personality presets, allowing users to tailor interactions. OpenAI aims for the model to integrate cognitive and emotional intelligence effectively.

For now, the rollout is for paid users, with free access occurring soon. Both models will be available via API, and legacy models will remain accessible for three months.


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Apple postpones iPhone Air sequel due to poor sales

Apple delays iPhone Air 2 indefinitely after lacklustre sales of first model

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Apple delays iPhone Air 2 indefinitely after lacklustre sales of first model

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In Short:
– Apple has postponed the iPhone Air’s launch due to poor sales of the current model.
– Production of the iPhone Air will stop, with Foxconn and Luxshare ceasing manufacturing by November and October respectively.
Apple has delayed the launch of its second-generation iPhone Air, which was scheduled for fall 2026, due to disappointing sales of the current model that debuted two months ago, as reported by The Information.Engineers and suppliers have been informed that the iPhone Air will be removed from the production schedule without a new release date.

The decision coincides with a significant reduction in the production of the existing model. Foxconn is expected to cease all manufacturing by the end of November, while Luxshare will stop production by the end of October.

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Sales for the iPhone Air have not met Apple’s expectations since its launch in September. Foxconn has limited its production lines for the device, and future orders are projected to decrease significantly. A survey indicated nearly no demand for the iPhone Air, with consumers instead choosing the iPhone 17 and iPhone 17 Pro models.

Production Challenges

The underperformance of the iPhone Air continues a trend of failed attempts by Apple to add a fourth model to its lineup.

The iPhone mini was previously discontinued after poor sales, followed by the larger Plus models, which faced similar challenges.

Apple had intended to develop a lighter second-generation iPhone Air with improved specifications but may now reconsider its design approach. The company also has plans for a staggered launch of the iPhone 18 lineup set for 2026 and early 2027.


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Tech giants’ $47 billion AI infrastructure deals announced

Tech giants commit $47.7 billion to AI deals as demand for computing power soars and market diverges

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Tech giants commit $47.7 billion to AI deals as demand for computing power soars and market diverges

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In Short:
– Wall Street started November mixed as AI deals boosted tech stocks, especially Amazon’s share price after a major agreement.
– OpenAI plans $1.4 trillion investment for computing resources, with Big Tech predicting over $250 billion AI infrastructure spending this year.
Wall Street began the month with mixed performances as major artificial intelligence deals influenced tech stocks positively, while broader market indices diverged.
Amazon’s shares rose over 5% following a significant $38 billion cloud services agreement with OpenAI, contributing to gains for the Nasdaq despite a decline in the Dow.The seven-year collaboration with Amazon Web Services marks OpenAI’s first major partnership with AWS, offering access to Nvidia graphics processing units essential for its AI expansion.

Amazon commented on the soaring demand for computing power resulting from rapid AI advancements, aiming for full capacity deployment by the end of 2026.

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Microsoft also sealed a $9.7 billion agreement with IREN, highlighting the industry’s insatiable need for cloud capacity.

The collaborations depict Big Tech’s ongoing commitment to AI infrastructure, with significant investments aimed at catering to the escalating demand for computing resources.

Investment Perspective

OpenAI CEO Sam Altman revealed intentions to invest $1.4 trillion to create 30 gigawatts of computing resources.

Major players, including Microsoft, Alphabet, Amazon, and Meta, have adjusted their capital expenditure forecasts for 2025, anticipating AI infrastructure spending to surpass $250 billion this year.

Despite market caution regarding inflated valuations, analysts remain optimistic about growth in the sector. Even amidst fears of an AI bubble, industry leaders assert ongoing investments will continue to bolster market performance through 2026.


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