OpenAI accuses a returning Apple employee of leaking its secrets; a Wozniak-signed Apple I sells for over $1 million; Apple appeals a $5.7 billion judgment; rumors circulate about reduced iPhone 18 Pro orders; Apple Intelligence arrives in China in December; a company pulls a tool to silence AirTag after accusations of facilitating prosecution; the iPhone Duo welcomes its new owner by name; an OpenAI employee plants a listening device in an executive meeting room; Character.AI files for bankruptcy and Disney makes a bid; and other exciting news on the sidelines…
Apple achieves record market share despite a 20% decline in the smartphone market.
Counterpoint reported that global smartphone shipments fell 20% in the third quarter of 2026 compared to the same period last year. This was the weakest third quarter in 14 years, attributed to a memory shortage and rising prices. Phone prices in stores have increased by approximately 20% since the beginning of the year.
Despite a decline in Apple's shipments, its market share rose to 22% from 18%, marking the first time it has exceeded 20% in any third quarter. Samsung maintained its lead with a 23% share, followed by Oppo at 9% and Vivo at 8%. Counterpoint does not anticipate a genuine recovery until costs decrease and supply improves.
OpenAI accuses former employee of leaking its device secrets to Apple
On October 14, OpenAI filed a court document in Apple's trade secrets case against it. The document states that an unnamed employee transferred from Apple to OpenAI, worked for them for approximately six months, and then returned to Apple. OpenAI alleges that on his last day of work, June 2, 2026, he sent over 100 confidential files to his personal accounts concerning at least one device that OpenAI has not yet publicly disclosed. These files include images of the device, engineering and manufacturing data, and supplier information. OpenAI also claims that he presented its product plans to senior Apple executives and has requested permission to investigate and potentially file a counterclaim.
Apple stated that it found no evidence to support these allegations and that it has policies prohibiting new employees from using confidential information from their previous employers. Apple filed the lawsuit in July, accusing former employees Zhang Liu and Tang Tan of transferring trade secrets to OpenAI. At an October 14 hearing, Judge Edward Davila indicated he would likely grant Apple a preliminary injunction, and OpenAI voluntarily agreed, according to Bloomberg, not to use the alleged secrets until the case is resolved. All of these claims remain contested and have not yet been decided by the court.
An OpenAI employee plants a listening device in the management meeting room.
US prosecutors have charged Abdulrahman Al-Fawzan, a 35-year-old engineer at OpenAI, with concealing a voice recorder behind a monitor in an executive meeting room at the company's San Francisco headquarters. The device, a small, thumb-sized tablet costing $23.99, was wrapped in toilet paper. Prosecutors say it was planted around September 28 and discovered by security on September 30. A second device was found in a bag he left near the printers on October 5.
OpenAI stated that it used its models to identify the device and its source, and that there was no evidence it had access to model weights, code, or customer data. The employee was fired the day of his arrest and remains in custody; his next court appearance is scheduled for October 19. The charges carry a maximum penalty of five years in prison and a $250,000 fine, and are still pending.
A working Apple I device signed by Wozniak sells for over a million dollars
An Apple I computer, nicknamed "Hatfield," sold for $1,148,200 at a Bonhams auction on October 14. The auction lasted 28 minutes and ultimately came down to two bidders. The computer is one of the few still functional ones, and its motherboard is signed by Steve Wozniak.
The device comes with a letter signed by Steve Jobs, dated January 1978. In it, Apple offered its first owner, Fred Hatfield, an Apple II and $400 in exchange for the return of his Apple I. The same device sold for around $666 in 2013, while other Apple I units have recently sold for between $375 and $475.
Apple is appealing a ruling ordering it to pay $5.7 billion to Taction.
Apple has filed a post-trial motion against a jury verdict ordering it to pay $5.7 billion to Taction, a company specializing in vibration technology. Taction filed the lawsuit in April 2021, claiming that the Apple Watch's Taptic Engine was a reverse-engineered version of its technology. In September 2026, the jury found that Apple had infringed on two patents, but unintentionally.
Apple argues that it did not infringe on either patent, that the jury lacked evidence to calculate the damages and therefore the figure was an estimate, that the verdict is self-contradictory, and that the patents were invalid from the outset. It requests that the court rule in its favor directly, or order a retrial on the issues of infringement, validity, and damages.
Has demand for the iPhone 18 Pro declined?
A report by Nikkei Asia stated that Apple has asked some suppliers to reduce production of components for the iPhone 18 Pro and Pro Max due to rising prices that have weakened demand. Apple has not confirmed this report. Two sources said that October orders were reduced by at least 15%, while an executive estimated the reduction at between 15% and 20%. It remains unclear whether the cuts will continue into November.
The two models are priced at $1,199 and $1,299 in the US, a $100 increase from last year. A source in the supply chain believes the absence of the regular iPhone 18 until next spring explains part of the price drop. Conversely, the leaker Fixed Focus Digital claimed on Weibo that Apple is stockpiling a very large quantity of the regular iPhone 18 before production begins at the end of November.
Apple's smart technology arrives in China in December
According to a Bloomberg report, Apple plans to launch Apple Intelligence in China in December as part of the iOS 27.3 update, after a delay of nearly two years due to regulatory issues. China had previously approved the use of Alibaba's Qwen and Tongyi Wanxiang models in the iPhone Duo, iPhone 18 Pro, and earlier iPhone models.
However, the Chinese version is limited. It won't include Siri's intelligent features, Apple's image generation tools, and text input will be restricted in some apps. The terms include a filter that allows the government to approve model updates. Apple is also working with Baidu on search features and some Siri functionalities.
A company is withdrawing a tool to silence AirTag users after accusations of harassment.
On September 30, accessories company ElevationLab announced a tool called the AirTag Silencer, priced at $9.99. The tool punctures the AirTag earpiece, disabling it without damaging the rest of the device. However, writer Glenn Fleischman published a lengthy critique arguing that silencing the AirTag actually aids stalkers and attackers, as the earpiece's sound serves as a warning for those who don't receive phone notifications.
On October 13, the company withdrew the product and issued an apology, acknowledging that the device could help someone with malicious intent track others. It stated that it was originally designed for its own bicycles and pledged to use the patent to prevent others from creating similar devices. Apple had previously made the second-generation AirTag earbuds more difficult to remove precisely for this reason.
iPhone Duo welcomes its buyer by name
Mark Gurman of Bloomberg reported that anyone purchasing an iPhone Duo from Apple stores in the US will see a greeting with their name, such as "Hello, Mark," upon first turning it on. This feature is exclusive to the US and the iPhone Duo, and is available in both English and Spanish.
Gorman added that Apple is preparing massive displays for the phone. The Fifth Avenue store in New York will feature more than 150 displays, and regular stores will have around 20, along with a new MagSafe platform that will display the phone open. Pre-orders begin on October 16, with deliveries to customers starting October 23 at a price starting at $1,999.
Apple is preparing to launch new Macs in Los Angeles.
Mark Gurman said Apple will invite content creators to an event in Los Angeles on October 27 and 28, instead of a traditional live conference. Apple is expected to announce a new MacBook Pro in 14-inch and 16-inch sizes with a redesigned OLED touchscreen, M5 Pro and M5 Max processors, and Dynamic Island around October 27.
Gorman also anticipates a 24-inch iMac with an M6 processor and new colors, a 14-inch MacBook Pro with an M6 processor, and an iPad mini with an OLED screen, A20 Pro processor, and water resistance. He believes this will be Apple's last major launch in 2026.
The HomeView device was ready two years ago.
Apple announced the HomeView for $299 on October 13. But a document from the US Federal Communications Commission (FCC), discovered by Aaron Peirce, indicates that the device underwent regulatory testing in October 2024. This is the clearest evidence yet that the device was delayed due to Siri, which Apple unveiled in 2024 and then postponed, not releasing it until September 2026.
Gemini 4 Argon arrives for AI Pro subscribers
Google has made the Gemini 4 Argon model available in the Gemini app for AI Pro and AI Ultra subscribers, after it had been exclusive to Ultra since the end of September. Google says the model hesitates less, repeats itself less, and follows method instructions better. The Antigravity intelligent programming interface has also arrived in the Gemini app for Mac.
Google stated that Argon helped isolate code from a folder containing approximately 6 million lines within Chromium and halved the processor usage of the YouTube comments interface. The API costs $2 per million input code and $10 per million output code until November 30th, after which the price will double.
Leak: Samsung smart glasses weigh 41 grams and have a 9-hour battery life.
SammyGuru has published a leak about Samsung's first smart glasses running Android XR, citing unnamed sources. The glasses have no screen, weigh around 41 grams, and are powered by a Snapdragon AR1 Gen 1 processor with 2GB of RAM and 64GB of storage, and a 12-megapixel camera capable of recording 3K video.
According to the leak, the battery lasts 9 hours, and 72 hours with the case. It will be sold with Warby Parker and Gentle Monster frames in the US and South Korea, and is expected to launch in November. Basic features work with Android and iPhone, while Galaxy features require One UI 9.
Character.AI declares bankruptcy and Disney offers $20 million
The company that owns Character.AI has filed for Chapter 11 bankruptcy protection in Delaware, seeking to sell nearly all of its assets. Disney made the initial offer of $20 million for a perpetual, non-exclusive license to some of its intellectual property, and other buyers may submit higher bids.
The assets and liabilities are estimated at between $50 million and $100 million each. The platform is currently operational but will shut down if no buyer comes forward to keep it running. The sale is expected to close between late November and early December. Disney appointed former Character.AI CEO Karandeep Anand as its first chief technology officer in September.
Miscellaneous news
Apple's stock closed at $342.96 on October 14, bringing its market capitalization to approximately $5.01 trillion. This marked the first time Apple closed above $5 trillion, making it the second company to achieve this milestone after Nvidia. Apple had previously surpassed this figure during trading in July, before falling back to $4 trillion.
A European Commission filing revealed a deal between Apple and Huxe, a smart audio company founded by Raisa Martin, Jason Spelman, and Stephen Hughes, formerly of Google's NotebookLM team. The deal was not an acquisition, but rather a non-exclusive license for the company's technology, with the option to offer employment to some of its employees. Huxe's app created daily audio summaries of email and calendar content and was discontinued on May 28, 2026.
Mark Gurman stated that the upcoming iPad Mini with an OLED screen will be significantly more expensive, starting at around $799 instead of the current $599. This is higher than the starting price of the 11-inch iPad Air. It is expected to feature a thinner bezel, improved speakers, and an A20 Pro processor.
Apple has announced repair prices for the iPhone Duo. Without AppleCare+, the cost for other damages reaches $1,499, which is 75% of the phone's price. The internal screen costs $999, and the battery $229. With AppleCare+, accidental damage costs only $99, and subscriptions start at $19.99 per month.
The iPhone Duo first appeared on Geekbench 7 under the name iPhone19,4, scoring 3986 for single-core and 11067 for multi-core. The phone comes with 12GB of storage and its performance is close to that of the iPhone 18 Pro.
Apple has added the 2017 12-inch MacBook to its list of obsolete devices, meaning all 12-inch MacBooks are no longer supported. The sixth-generation iPad and BeatsX headphones have also been added to the list. Apple does not offer repair services for obsolete devices.
Apple has launched a new webpage and two videos to persuade Chrome users to switch to Safari. According to Apple's tests, Safari on Mac offers up to five more hours of video streaming and opens frequently visited websites up to 35% faster.
Sixteen US states support driver's licenses in Apple Wallet, but Florida and Rhode Island have so far refused. Florida Governor Ron DeSantis has said that the convenience of a digital license is not worth the risk of government misuse. Rhode Island's traffic chief believes it is not yet worth funding because the Transportation Security Administration (TSA) is the primary agency that accepts it.
Apple and Epic are trading accusations in court regarding the delivery of documents in their backlink commission case. Apple had proposed a commission of between 5% and 15% in August, instead of the previously proposed 27%. Epic claims that Apple has delivered almost nothing two months after the deadline, while Apple expects to complete the delivery between November 1st and 25th.
◉ Meta has launched the Muse Wonder and Muse Wonder Full models for intelligent agent tasks. These models feature context memory between conversations, the ability to track complex objectives, and the option to experiment with alternatives while requesting permission before crucial steps. The first model is now available to developers, while the second is limited to Muse Code subscribers.
Anthropic replaced its Git system with a new internal system called Scion after daily merges jumped from around 2,500 in May to over 30 in September due to intelligent agents. A team of seven people completed the migration in five months, reducing upload times from minutes to seconds. The company will not release the system to the public.
Microsoft has unveiled its Maia 300 chip, designed to power artificial intelligence models, and plans to deploy it in 2027. It claims to produce approximately 40% more code per megawatt compared to leading graphics processing units (GPUs). However, it will not be available to Azure customers, but rather to Microsoft's own services.
A Wall Street Journal report stated that Amazon is negotiating to acquire the artificial intelligence company Decart for approximately $7 billion. Founded in the occupied territories about three years ago, Decart develops software that runs models on various processors. This could help Amazon migrate customers to its Trainium 3 chips instead of Nvidia.
Microsoft patched more than 1,400 vulnerabilities in its October security updates, a record high after nearly 1,000 in September. These included a zero-day vulnerability in the Windows interface and at least 78 critical vulnerabilities. Microsoft says that artificial intelligence models are responsible for this surge in vulnerability discovery.
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