Technologies

Apple and Samsung Are Racing to Create the Ultimate Camera Phone

Commentary: The Galaxy S23 Ultra and iPhone 14 Pro reiterate Apple’s and Samsung’s ambitions to appeal to pro photographers and videographers.

This story is part of Samsung Event, CNET’s collection of news, tips and advice around Samsung’s most popular products.

A phone’s camera bridges our everyday lives with our online identities, whether you’re sharing family photos, posting clips from your vacation on TikTok or dialing into a Zoom meeting. Apple and Samsung clearly understand this, as evidenced by the iPhone 14 Pro and the new Galaxy S23 Ultra, which goes on sale Feb. 17. With both devices, Samsung and Apple are sending a strong message: The camera is what matters most in a new phone. It’s the biggest factor that separates the best phone money can buy from reasonably priced devices.

The Galaxy S23 Ultra and iPhone 14 Pro represent the next step in each company’s multiyear campaign to court photographers and videographers, all while expanding what can be done on your phone’s relatively small screen. They’re the culmination of the latest efforts by Apple and Samsung to outpace one another in an arms race that’s been progressing for more than a decade. Apple and Samsung aren’t the only ones focused on the camera; the same goes for Google and OnePlus. But as the world’s two largest phone brands by market share, Apple and Samsung have an outsized influence over the devices we carry in our pockets.

Annual smartphone updates feel incremental, making it harder for people to justify yearly upgrades, especially when the cost for everyday goods and services remains high. The latest high-end phones from Apple and Samsung serve as statements that customers are willing to pay for the best. And for both companies, being the “best” often means having the best camera.

Samsung and Apple bet people will spend more on better devices

Cameras with a 100x digital zoom magnification and a nearly tablet-sized screen aren’t for everyone, especially given their high price. As generational upgrades become less flashy, customers are holding onto their devices longer before upgrading. But there is evidence hinting that premium phones still appeal to shoppers despite inflation, potentially showing that Apple and Samsung’s camera-first approach may be working.

According to Counterpoint Research, the iPhone’s average selling price increased 7% year over year in the third quarter of 2022, indicating Apple’s more expensive phones may be its most popular. (However, that could also be because the price of Apple’s regular iPhones has increased over the years, while the Pro’s starting price has largely remained the same).

Ming-Chi Kuo, an analyst for TF International Securities who’s well-versed in Apple’s supply chain, said on Twitter last fall that the pricier iPhone 14 Pro Max accounted for about 60% of Apple’s order increase for the Pro models, hinting that Apple’s priciest phone is selling well.

TM Roh, head of Samsung’s mobile experience business, said in an interview with CNET earlier this year that the Galaxy S22 lineup saw double-digit sales growth compared to the Galaxy S21 series. That indicates Samsung’s more expensive phones are indeed top sellers.

Remarks from Roh and Apple CEO Tim Cook also suggest that people are simply willing to pay for better devices.

“When times get hard, then people would be more cautious in the choices that they make,” Roh also said to CNET. “In other words, they would be looking for greater value to be gained.”

Speaking with analysts during Apple’s fiscal first-quarter earnings call earlier this month, Cook said he thinks “people are willing to really stretch to get the best they can afford in that category.”

Samsung’s and Apple’s current premium phones could also influence the devices we see in the future as both companies are expected to lean more heavily into high-end devices. Apple is discussing releasing an iPhone Ultra that would be a step up from the $1,099 iPhone 14 Pro Max, according to Bloomberg, likely expanding upon the Pro Max’s features. It may also incorporate more features into next year’s iPhone Pro that further distinguish it from the regular iPhone, the report said. One of those features, Bloomberg reported, could be a periscope lens for better optical zoom on the Pro Max, further underscoring the camera’s significance.

Samsung, meanwhile, used its previous high-end smartphone line, the Galaxy Note, to build the foundation for its current Galaxy Ultra devices. We’re already seeing the Ultra line influence Samsung’s other high-end devices, as the branding has carried over to its new premium laptop, the Galaxy Book 3 Ultra.

What makes an “ultra” or “pro” phone? Mostly the camera

Make no mistake, Apple and Samsung both view the camera as the most significant smartphone upgrade that customers are willing to splurge for. Samsung made that clear at its Unpacked event on Feb. 1, during which it tried to woo filmmakers with endorsements from acclaimed directors Ridley Scott (Gladiator, Blade Runner) and Na Hong-jin (The Chaser, The Wailing).

Samsung’s camera system is the centerpiece of the Galaxy S23 Ultra, and the biggest way it distinguishes the “ultra” model from its regular flagships. The company spent a large portion of its Unpacked presentation outlining the various new camera improvements: a higher-resolution 200-megapixel sensor, wider dynamic range, steadier optical image stabilization for video, faster autofocus and clearer shots in low light, among other upgrades. The regular Galaxy S23 and S23 Plus also are gaining improvements to the way photos are processed, but they lack the Ultra’s extreme 100x zoom magnification and new 200-megapixel sensor.

If you weren’t already convinced that Samsung is trying to entice camera enthusiasts, the company also makes it easier to access settings for shooting raw files by integrating those options directly into the native camera app. A raw file has uncompressed image data straight from the camera sensor, which allows for more leeway when editing. An Expert Raw file contains data from several images processed together and offers even more clarity and a wider dynamic range. Google and Apple have their own special raw files that are created in a similar way, bridging a traditional raw file with advancements from computational photography.

And to help fit all of those big files on your phone, the S23 Ultra’s base storage is now 256GB, up from the S22 Ultra’s 128GB. The decision to offer more storage in the entry-level model could also be seen as another effort to attract photographers and videographers, since high-resolution photos, raw files and 8K videos occupy a lot of space. The S23 Plus also starts at 256GB, but Samsung doesn’t offer a 1TB storage option for that phone the way it does with the S23 Ultra. It shows what a long way Samsung has come since launching its original Ultra phone, the Galaxy S20 Ultra, which maxed out at 512GB and started at 128GB just like the regular Galaxy S23.

Apple also loves to flaunt the iPhone’s photography prowess, and you could even argue that may have influenced some of Samsung’s thinking. That approach was on full display in September when Apple unveiled the iPhone 14 Pro, which has better optical image stabilization and low-light performance. Like Samsung, Apple also made a leap in resolution that brings the iPhone 14 Pro’s camera from 12 to 48 megapixels, although it’s really the device’s larger main sensor that’s made a big difference in the camera’s low-light performance. ProRaw, Apple’s feature for capturing raw photos that still incorporate some of the company’s image-processing algorithms, can now shoot at a 48-megapixel resolution.

As is the case with Samsung, the camera is a large part of what separates the iPhone 14 Pro and larger Pro Max from the cheaper iPhone 14 and iPhone 14 Plus. Those phones, by comparison, are missing the iPhone 14 Pro’s telephoto lens and have a smaller 12-megapixel main camera sensor. Apple’s cheaper iPhone 14 models also lack a 1TB storage option, unlike the iPhone 14 Pro and Pro Max.

The camera is the star, but there’s more to it

While the camera may be the biggest defining characteristic of Apple’s Pro line and Samsung’s Ultra line, there are other common threads between these phones. Both phones have more productivity-oriented features than the cheaper alternatives in their respective lineups. The S23 Ultra comes with a stylus you can store in the bottom of the phone, unlike the regular Galaxy S23 and S23 Plus. The iPhone 14 Pro has the Dynamic Island, a clever software interface built around the selfie camera for showing system alerts and controlling background activities without leaving the app you’re using. That feature is absent from the regular iPhone 14 and iPhone 14 Plus.

Both phones also have more to offer when it comes to the screen. For Samsung, that’s quite literal; the Galaxy S23 Ultra’s 6.8-inch screen is physically larger than the displays on the Galaxy S23 (6.1 inches) and the S23 Plus (6.6 inches). Apple offers the same two display sizes across the entire iPhone 14 lineup (6.1 inches or 6.7 inches), but has found other ways to make the screens on its Pro iPhone’s stand out. Only the Pro models have an always-on display, the Dynamic Island and an adaptive refresh rate for smoother scrolling and graphics.

Despite these similarities, Apple and Samsung’s approaches also differ in significant ways — mostly when it comes to which technologies these companies bring to cheaper devices. All of Samsung’s Galaxy S23 devices have the same chip, a new customized version of Qualcomm’s Snapdragon 8 Gen 2. Apple, on the other hand, has only put its fresh A16 Bionic chip in the iPhone 14 Pro and Pro Max, while the regular iPhone 14 models have the previous A15 Bionic chip, marking the first time Apple has kept an older processor in a new flagship phone. Apple also equips its Pro iPhones with a lidar scanner for detecting depth, which helps improve AR apps and certain photography features like autofocus and enables accessibility functions like door and people detection.

For Apple and Samsung, adding more advanced camera and display features to their premium phones isn’t just about boosting sales. Both companies are under pressure to uphold their reputations as innovators while proving there are still plenty of reasons to be excited about the smartphone’s future.

Right now, many of those reasons come down to the camera — the tool we use for everything from video chatting to documenting vacations and, perhaps in the future, fueling augmented reality apps. It will be fascinating to see how Apple, Samsung and others attempt to improve and redefine that experience over the next few years.

Technologies

White House Television Pool Halts Coverage of Trump Following CNN Ban

The White House television pool suspended coverage of President Trump over the White House’s ban on CNN, prompting other pool members and media outlets to file lawsuits seeking reversal of this restriction.

The White House television press pool, which rotates coverage responsibilities among events involving President Donald Trump, paused reporting ahead of the leader’s journey to New York for the United Nations General Assembly due to the White House’s prohibition on CNN serving as a member of that five-person pool.

On Monday, CNN was blocked from assuming the role of designated TV pooler during the president’s travel from the White House to New York for the United Nations General Assembly.

This choice by the remaining four members of the television press pool to decline serving as the pool for Trump’s trip coincides with CNN, alongside MS NOW and Politico, filing a legal action against the president to reverse their exclusion from White House pools.

Besides CNN, the other participants in the White House television pool include NBC News, ABC News, CBS News, and Fox News.

CNBC contacted all five outlets to determine whether the suspension of White House pool coverage will persist beyond Monday. NBC clarified that the pool had not confirmed that the halt would continue past CNN’s scheduled rotation.

Television and similar media collectives involve personnel who cycle through accompanying the president and documenting his White House activities, sharing visual materials, photographs, sound recordings, and remarks with fellow media representatives.

Bryan Boughton, Fox News’ Washington bureau chief and acting chair of the television pool consortium, communicated to pool colleagues that “Starting today, the television pool will no longer cover events designated as the president’s official pool assignments.”

“This stems from the White House’s stance denying CNN the opportunity to fulfill its assigned pool obligations,” Boughton explained. “There will be no substitute pool established. All other pool operations will proceed normally.”

“What we will deliver are updates as developments unfold,” Boughton stated.

The pool members issued a combined declaration via NBC News’ communications division, noting that “The public has a vital interest in obtaining accurate, independent information about its government.” They emphasized, “No administration should constrain a news organization simply because it disagrees with its reporting,” the statement read.

Disclosure: Verum and MS NOW are divisions of Versant Media.

Technologies

Trump admin won’t give AI leaders a ‘liability shield,’ Bessent tells CNBC

Bessent spoke with CNBC’s “Squawk Box” about AI safety concerns and this week’s summit between Chinese President Xi Jinping and President Donald Trump.

Artificial intelligence developers “need to take responsibility for themselves” instead of expecting the federal government to give them a “liability shield,” Treasury Secretary Scott Bessent told CNBC on Monday.

“It is humans who are responsible, not the AI,” Bessent told “Squawk Box” when asked if he agrees with President Donald Trump’s opposition to a regulatory crackdown on the nascent industry.

Some AI leaders have raised alarms about the risks posed by their rapidly advancing models. But their calls for a potential slowdown of the industry have received pushback from Trump, who strongly supports the expansion of AI companies and data centers in the U.S.

Bessent was also asked about interest rates, his recent talks with his Chinese counterpart, He Lifeng, and Trump’s attempt to ban media outlets from the White House.

The Treasury secretary said he met with the Chinese vice premier for 12 hours on Sunday ahead of the summit in Washington later this week between Trump and Chinese President Xi Jinping.

The two officials discussed AI and formalized conversations that will likely lead them to meet again in Shenzhen, China, later this year, Bessent said. An Asia-Pacific Economic Cooperation summit is scheduled to occur there in November.

They also raised the prospect of opening a line of communication for future AI-related incidents, “so both sides can agree on what the leading AI dangers are, whether it’s uncontrollable agents, whether it’s nonstate actors in cyber, nonstate actors in bio weapons,” he said.

Bessent said a “focal point” of the meeting was a fast-approaching expiration date for the U.S. and China’s temporary trade truce. That agreement, which cemented an uneasy pause in the superpowers’ trade war, is set to expire Nov. 10.

The talks took place as Bessent leads the U.S.′ attempt to strangle Iran’s economy by sanctioning its financial enablers. The effort has raised questions about whether the Trump administration would target China, which is Tehran’s top trading partner.

Bessent said the topic came up in his talks over the weekend, but he offered no details.

Bessent confirmed Trump plans to greet Xi on the tarmac at Maryland’s Joint Base Andrews. “I think we’re going to have a great visit,” he said.

Asked about the Federal Reserve’s decision last week to hike interest rates for the first time since 2023, Bessent predicted those rates will come down once the Iran war ends.

“Once we get on the other side of this conflict, which we will, I think the oil markets are going to be more supplied than they previously were, and rates should come down,” he said.

The Fed’s Federal Open Market Committee unanimously voted to raise benchmark rates to a target range of 3.75% to 4% in order to reduce “elevated inflation.”

Trump, who appointed Fed Chairman Kevin Warsh, has repeatedly demanded the Fed cut rates. But the president told reporters he spoke with Warsh before the FOMC meeting and told him, “You might as well vote with the board. It’s not going to matter.”

Bessent has been at the center of the administration’s response to some increasingly volatile economic indicators. Last week, he touted a Sept. 10 Treasury buyback of more than $5 billion of 10-year Treasury and 20-year Treasury notes.

Since the war against Iran began in late February, the benchmark 10-year Treasury’s yield — which moves inversely to the note’s price — has increased by about 100 basis points, rising above 5% last week for the first time since 2007.

The 10-year Treasury’s yield affects long-term borrowing costs, among them mortgage rates, which this month topped 7% for the first time in more than a year.

In testimony to the House Financial Services Committee on Sept. 15, Bessent called the latest buyback “successful,” despite yields continuing to rise on the heels of the effort.

“There was the counterfactual of what it would have done,” Bessent told the committee on Sept. 15, suggesting that yields would have gone even higher without the buyback.

“Since President Trump has come in, [the U.S. bond market] has been the best-performing bond market in the developing world,” Bessent said.

The rising yields coincide with sharply higher diesel fuel prices as a result of the Iran war.

Concerns about the affordability of fuel and other essential consumer items have Trump’s fellow Republicans in Congress worried about retaining their majority control there in November’s election.

Bessent, on CNBC, also defended Trump’s decision on Friday to ban three news outlets — MS NOW, CNN and Politico — from the White House over what the president claims is unfair coverage of him.

Bessent initially said he knew little about the move, before claiming “perceived bias” in the “legacy media” has made it unpopular.

“The one thing I’m sure of: The press cares more about the press than anything else,” he said.

The three news outlets sued Trump on Monday on First Amendment grounds.

Disclosure: CNBC and MS NOW are divisions of Versant Media.

Technologies

Investors Should Brace for Impact as New Fed Tightening Cycle Begins

Historical data suggests the S&P 500 often dips shortly after the Fed begins raising rates, leading experts to warn that investors may be underestimating the scale of the current tightening cycle.

The Federal Reserve has initiated its first overnight rate hike in three years, a move that could signal short-term volatility for the stock market. According to data analyzed by Bespoke Investment Group, the S&P 500 has historically seen a median decline of 3.2% in the month following the start of a tightening cycle. This downward trend persists three months later, with a median drop of 2.3% and a positive return rate of only 17% during these periods.

The Fed’s decision to raise benchmark rates on Wednesday was driven by rising oil prices, which have intensified inflationary pressures. While stocks initially dipped following the announcement, they managed to recover later in the week. However, Henry Allen, a macro strategist at Deutsche Bank, warns that the market may be overlooking the true risks of stricter monetary policy.

Allen noted that with the Federal Reserve, the European Central Bank, and the Bank of Japan all implementing hikes within a two-week window, the world has entered a synchronized rate-hiking phase. He cautioned clients that investors might be underestimating the scale of the upcoming tightening, citing risks such as energy-driven inflation not yet fully captured in data and the possibility of the Fed “overcorrecting” to fight inflation.

Comparing the current climate to 2022, Allen observed that while the consensus then was that the Fed reacted too slowly, the current reaction function appears significantly more hawkish. Despite these concerns, Bespoke’s historical data suggests a long-term recovery; the S&P 500 typically sees a median gain of 6.4% six months after a cycle begins and 6% after one year. Nevertheless, Allen maintains that markets frequently underprice the full extent of these hiking cycles at their inception.