9to5Mac Daily

Apple settles Siri lawsuit for $250M, more

8 min
May 6, 202628 days ago
Listen to Episode
Summary

Apple's iPhone 17 became the world's best-selling smartphone in Q1 2026, while iOS 27 will introduce AI model extensions allowing users to choose between Apple and third-party AI providers like Google and Anthropic. Apple also settled a $250 million lawsuit over delayed Apple Intelligence features, with eligible users receiving $25-$95 per device.

Insights
  • iPhone 17 standard model outselling Pro variants signals shift in consumer preferences toward base models despite premium options
  • Apple's extension system for AI models represents strategic openness to competition while maintaining default control through native integration
  • Market concentration in top 10 smartphones reached highest Q1 level ever at 25%, indicating consolidation around flagship devices
  • Apple Intelligence delays resulted in legal liability, establishing precedent for accountability on AI feature promises
  • Third-party AI integration with distinct voice options creates user transparency about which AI model is responding
Trends
Smartphone market consolidation with top 3 devices (iPhone 17, iPhone 17 Pro Max, iPhone 17 Pro) dominating salesAI model choice becoming standard feature expectation in consumer devices rather than proprietary advantagePrivacy and AI capabilities emerging as key smartphone differentiators (Samsung Galaxy S26 Ultra privacy display)Class action litigation risk for overpromised AI features in consumer tech productsVoice differentiation as UX pattern for distinguishing between multiple AI providers in single interfaceEnterprise adoption of AI extensions through App Store distribution modelSamsung's flagship models losing top 10 positioning despite feature improvementsQ1 smartphone sales patterns diverging from Q4 trends, suggesting seasonal demand shiftsApple Intelligence becoming table-stakes feature across iPhone 15 Pro and newer models
Topics
iPhone 17 sales performance and market leadershipiOS 27 AI model extensions and third-party integrationApple Intelligence feature delays and legal settlementSiri voice customization for multiple AI modelsSmartphone market concentration and sales rankingsGoogle Gemini and Anthropic Claude integration with AppleSamsung Galaxy S26 Ultra privacy display featuresClass action lawsuit settlement terms and user payoutsWWDC 2026 announcements and iOS 27 previewAI capability claims and consumer expectationsDevice eligibility for Apple Intelligence settlementCounterPoint Research smartphone market analysisGlobal smartphone sales distribution Q1 2026Apple's default AI model strategyIn-app actions and personal context features
Companies
Apple
Primary subject; iPhone 17 sales leader, settling $250M lawsuit, introducing iOS 27 AI extensions
Google
Gemini AI model integrated as default for Apple Intelligence; supporting iOS 27 extensions
Anthropic
Claude AI model available as third-party extension option in iOS 27 for Apple Intelligence features
Samsung
Galaxy A07 4G, A17 5G, and S26 Ultra models competing in global smartphone market rankings
CounterPoint Research
Market research firm providing Q1 2026 smartphone sales data and global rankings analysis
People
Chance Miller
Host of 9to5Mac Daily podcast episode covering Apple news and industry trends
Quotes
"Apple saturated the internet, television, and other airwaves to cultivate a clear and reasonable consumer expectation that these transformative features would be available upon the iPhone's release"
Lawsuit filingSettlement discussion
"The iPhone 17 is now reportedly the best-selling smartphone with a 6% share of global smartphone sales"
Chance MillerOpening segment
"Users will be able to choose from AI models that enable support for this new extension system in their App Store apps"
Chance MilleriOS 27 discussion
Full Transcript
Welcome to 9 to 5 Mac Daily for Wednesday, May 6, 2026. I'm your host, Chance Miller. We are sponsored this week by Bitwarden. Leading off today, a new CounterPoint research report shows that the iPhone 17 overtook the iPhone 17 Pro Max and became the world's best-selling smartphone during the first quarter of 2026. Last month's Global Top 10 Best-Selling Smartphones ranked the iPhone 17 Pro Max at the top for Q4, accounting for 5% of global sales, followed by the iPhone 17, then the iPhone 17 Pro, and the iPhone 16. New preliminary data for the first quarter, however, changes that top ranking. The iPhone 17 is now reportedly the best-selling smartphone with a 6% share of global smartphone sales, followed by the iPhone 17 Pro Max in second and the iPhone 17 Pro in third. The top 10 continues with the Samsung Galaxy A074G and A175G, followed by the iPhone 16 and then several other Samsung models. While CounterPoint doesn't disclose the sales share for devices beyond the iPhone 17 6%, it is notable how the top three stand well above the others in the list. The top 10 smartphones in total contributed to 25% of global unit sales, which CounterPoint says is the highest concentration ever for the first quarter. And finally, CounterPoint noted that despite Samsung's flagship Galaxy S26 Ultra narrowly missing the top 10, the device is seeing stronger initial sales in the Galaxy S25 Ultra thanks to features like its privacy display and new AI capabilities Next up today iOS 27 will give users a new way to interact with third AI platforms This will let iPhone users choose from multiple different third models from companies like Google and Anthropic to manage Apple intelligence features and interact with Siri. According to Bloomberg, Apple is referring to this new capabilities as extensions as part of iOS 27. In test versions of the software, Apple explains that extensions allow you to access generative AI capabilities from installed apps on demand through Apple intelligence features like Siri, writing tools, image playground, and more. Users will be able to choose from AI models that enable support for this new extension system in their App Store apps. For example, Google and Anthropic could add support for extensions to the Gemini and Claude apps, respectively. Then, users could choose to use those models to power features like writing tools and other Apple Intelligence capabilities. This is in addition to Apple's deal with Google to use Gemini to power native Siri and Apple Intelligence features. So the default will be the Apple-developed Gemini model, but users will also be able to opt for these third-party versions. Today's report also follows a Bloomberg report from March, which explained how the extension system will work with Siri itself. What's new today is how the system will work with broader Apple intelligence features, again, like writing tools and image playground. And speaking of Siri, today's report says that iOS 27 will let users choose different voices for each AI model. so queries handled by apple's own system could use one voice while responses from third-party models such as anthropics claude could use another this will let users know which ai model they interacting with through siri at any given time ios 27 is set to be introduced at wwdc which kicks off on june 8th We are sponsored this week by Bitwarden You can get started with the Bitwarden Password Manager including a free plan with unlimited passwords by hitting the link in the show notes or going to bitwarden.com. Bitwarden helps you generate and store strong, unique passwords and passkeys across all of your devices so you're not reusing the same login everywhere. It also keeps things simple with autofill for passwords, cards, and identities, plus vault health records to flag weak or compromised passwords. With end-to-end encryption and built-in protection against phishing and data breaches, Bitwarden is trusted by over 10 million users and 50,000 businesses worldwide. And with World Password Day taking place this week, it's a great reminder to make sure your passwords are actually protecting you. Hit the link in the show notes or head to Bitwarden.com to get started today. Riding out today, last March, Apple was hit with a class action lawsuit after delaying the launch of the more personalized Siri that was first announced at WWDC 2024. That's features like in-app actions, personal context, and on-screen awareness. Apple agreed to settle the case in December, and now the full settlement terms have been made available. The lawsuit said that Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years It added that Apple, quote, saturated the internet, television, and other airwaves to cultivate a clear and reasonable consumer expectation That these transformative features would be available upon the iPhone's release, end quote As part of the settlement, Apple is not admitting any wrongdoing The company continues to assert that, quote, Apple is set to pay million to settle the lawsuit leading to an expected payout to Apple users of $25 per device. It covers the purchase of Apple Intelligence-capable devices between June 10, 2024 and March 29, 2025. That's essentially the window between when Apple Intelligence was announced at WWDC and when Apple announced the delays. It applies to the iPhone 15 Pro and iPhone 15 Pro Max, as well as the entire iPhone 16 series. So that's the 16, 16E, 16 Plus, 16 Pro, and 16 Pro Max. The payout will be $25 per eligible device, but that number may vary based on the number of claims submitted by eligible users. If a large percentage of eligible users submits a claim, the payment could be lower. If fewer users submit a claim, the maximum payout per the terms of the settlement is $95 per device. The $250 million settlement also covers attorney fees and various other administrative costs, which reduces the pool actually paid out to users. To submit a claim, you'll need to provide proof of your purchase of an eligible device, such as a serial number, Apple account information, and a phone number. The settlement received preliminary approval today, and notices inviting claim submissions will be sent out within 45 days, at which point you'll be able to submit all of your information. That wraps up another episode of 9to5Mac Daily. As always, you can find all of the latest Apple news on 9to5mac.com. Follow along with me on threads at Chance H. Miller. And we'll be back tomorrow for a new episode of 9to5Mac Daily. Online Emilio