Apple Sues OpenAI Over Trade Secrets Amid Looming iPhone Price Hikes — 2026-07-10#

Highlights#

Today’s news cycle is dominated by a major legal clash, as Apple has filed a lawsuit against OpenAI and former employees over the alleged theft of hardware trade secrets. Beyond the courtroom, the rumor mill is churning with reports of rising component costs threatening the upcoming iPhone 18 Pro Max, alongside new battery details for the highly anticipated foldable iPhone Ultra.

Top Stories#

• Apple Sues OpenAI for Stealing Trade Secrets to Build AI Hardware: Apple has filed a lawsuit against OpenAI and former Apple engineers, including Tang Tan and Chang Liu, accusing them of stealing confidential information and trade secrets. The complaint alleges an organized scheme to use Apple’s unreleased hardware, manufacturing processes, and vendor relationships to accelerate OpenAI’s nascent consumer hardware efforts. OpenAI responded, denying the allegations and claiming no interest in other companies’ trade secrets. (Source)
• iPhone 18 Pro Max Component Costs Could Rise Nearly $300: The bill of materials for the 1TB iPhone 18 Pro Max is expected to surge by almost $300 compared to the iPhone 17 Pro Max. This increase is largely driven by skyrocketing NAND flash and DRAM pricing, coupled with the steep premium for TSMC’s new 2nm node (the A20 Pro chip). (Source)
• Foldable iPhone Ultra Battery Capacity Allegedly Registered by Supplier: Apple’s battery supplier has reportedly registered dual battery cells with capacities of 1,921mAh and 2,962mAh, totaling a combined 4,883mAh. This dual-cell configuration aligns with the design of existing book-style foldable smartphones, giving us a clearer picture of the hardware backing Apple’s rumored iPhone Ultra. (Source)
• Meta removes feature that let users generate AI images from public Instagram posts: Following significant user backlash, Meta has removed an opt-out feature that allowed anyone to use public Instagram posts to train and generate AI images using its Muse Image tool. Users previously had to dive deep into settings to proactively prevent their content from being used. (Source)
• OpenAI’s ChatGPT Atlas Browser Is Shutting Down: OpenAI is sunsetting its dedicated “agentic” ChatGPT Atlas browser, effective August 9. The company intends to shift its focus away from a standalone browser and instead incorporate agentic web browsing features directly into the new ChatGPT desktop application. (Source)

Articles Worth Reading#

iOS 27: What’s New With the Mail App (Source) Apple’s Mail app is receiving a significant overhaul in iOS 27, leaning heavily into Apple Intelligence capabilities. The update includes an intent-based search system that ranks results by relevance rather than just recency. Users will also gain a “Write with Siri” interface that drafts and edits emails in their personal tone, alongside a “Call Context” feature that pulls relevant email information (like order numbers) directly into the Phone app during related calls.

Apple Watch Accounts for 90% of AI Smartwatch Shipments (Source) Data from Counterpoint Research shows that Apple commanded 90% of all Edge AI-capable smartwatch shipments in the first quarter of 2026. Apple’s early integration of a 4-core Neural Engine starting with the S9 chip has allowed it to process tasks like irregular heartbeat detection locally without relying on a paired iPhone or cloud server. As health and fitness monitoring continue to drive Edge AI adoption, competitors like Huawei and Google are only just beginning to introduce comparable neural hardware.

US eases restrictions on Apple’s access to AI chips and data center equipment in the UAE (Source) The U.S. Department of Commerce has relaxed export rules, allowing Apple and seven other tech giants to bypass individual export licenses for shipping advanced computing items to the United Arab Emirates. This regulatory shift grants Apple and its subsidiaries streamlined access to bring covered servers, AI chips, and software directly into their UAE operations. This frictionless access will likely play a crucial role in expanding Apple’s data center infrastructure and Apple Intelligence capabilities in the region.