Technologies

Apple Wants to Make the Apple Watch Your ‘Key to the World’

Apple’s vice president of technology, Kevin Lynch, speaks with CNET about WatchOS 10 and the company’s approach to new Apple Watch features.

Apple CEO Tim Cook said that the tech giant’s greatest contribution to mankind will be about health when he spoke with CNBC in 2019. The Apple Watch, with its ability to measure all sorts of bodily markers, may be the biggest contributor to that mission yet. But Apple also has another important purpose in mind for its nearly decade-old smartwatch: acting as your «key to the world.»

That’s according to Kevin Lynch, Apple’s vice president of technology, who recently sat down for a virtual interview with CNET. This direction isn’t new; Apple has been gradually extending the Apple Watch’s functionality over the years, enabling it to work as a digital key for your car and home. In fact, that goal was part of the Apple Watch from the beginning through the original model’s support for Apple Pay.

But this theme feels more prevalent than ever in WatchOS 10, the upcoming software update launching in the fall and arriving in public beta next month. The new software introduces updated widgets to help the watch surface information as needed, perhaps a testament to just how much we’re doing on these tiny wrist-worn devices today. The goal is to provide a lot of data at a glance while maintaining the watch face aesthetic, Lynch said.

«This has been a journey for us over a number of years as we really found the best path and the richest way to balance these things,» Lynch said.

watch10-mainedit-site-v3-00-01-55-10-still003

Watch this: WatchOS 10: Biggest Apple Watch Features Coming This Year

04:44

WatchOS 10 widgets could make the Apple Watch easier to use

The Apple Watch has gained many new features and functionality since its 2015 debut, especially when it comes to health. But the general interface has largely remained the same.

That’s about to change in WatchOS 10 with the introduction of widgets, or informational cards that are accessible from the watch face with a twist of the digital crown. You’ll be able to add widgets for viewing the weather forecast, reminders and news headlines among other tidbits, similar to the iPhone. This should mean significantly less tapping and swiping would be required to set a timer or view your next meeting.

The order of these cards will contextually change depending on factors like the time of day similar to the iPhone’s widgets, which Apple calls the «smart stack.» The idea is to show the right data as you need it throughout the day. For example, the weather might appear first in the morning, while a medication reminder may surface at night.

apple watch on person's wrist — The timer widget in WatchOS 10.

Apple/Screenshot by James Martin/CNET

It might sound like a small update, yet it’s one that could make the Apple Watch better at serving up relevant information with minimal effort. When the first Apple Watch arrived eight years ago, some reviewers criticized the device’s software as being too complicated and complex.

Those concerns have seemingly faded away as the Apple Watch became more prevalent. According to Counterpoint Research, Apple accounted for 26% of the global smartwatch market as of the first quarter of 2023, more than any other company. But the arrival of these new widgets, along with other updates like redesigned apps and a shortcut that launches the Control Center menu with the side button, show that there’s still work to be done when it comes to making the Apple Watch more intuitive.

Apple’s intention to have your Apple Watch unlock the world around you has been evident for a while; it announced the ability for the watch to double as a key to your office, home or hotel in 2021, for example. That raises the question of why Apple waited until 2023 to update the interface in a way that makes relevant information more easily accessible.

Apple Pay was available even on the first Apple Watch.

Lynch said it comes down to a combination of user feedback and hardware improvements that enable the machine learning that’s necessary to power the smart stack. The company also didn’t want to change the Apple Watch’s user interface too often or in a way that would feel jarring.

«It was informed by all of our experiences that we’ve had over time, of course, about how people interact with the watch,» he said.

Apple’s approach to new features is about hardware and software

Many of the Apple Watch’s major changes come down to how the software and hardware work together. That’s especially true for the Apple Watch’s health tracking functionality, which also gets an upgrade in WatchOS 10. There are new metrics for cyclists and additional features like topographic maps in Apple Maps for hikers, a mood-logging tool and the ability to detect time spent in daylight.

In some ways, Apple takes a different approach than its competitors when it comes to how health data from the watch’s sensors is used and presented throughout the interface. Rivals like Oura and Google’s Fitbit, for example, crunch certain readings to generate a «readiness score,» which communicates whether your body is ready for a tough workout or in need of a rest day.

oura-readiness-1 — The Oura app’s daily Readiness score, a combination of multiple measurements.

Scott Stein/CNET

The Apple Watch lacks an equivalent feature in WatchOS 10, and that’s intentional. When asked about whether Apple envisions recovery-related insights like a readiness score for the Apple Watch, Lynch pointed to the company’s approach for developing new features. He said Apple’s strategy focuses on solving broad problems that impact a wide range of people, adding that the company is «optimistic» about getting new health insights from the watch’s existing sensors.

«We actually look at a combination of what we can sense and what are the top health challenges that people have in the world,» he said. «And what’s the intersection of what we can sense, and what are those issues?»

That doesn’t mean Apple will never offer a readiness score-like feature, said Deirdre Caldbeck, director of Apple Watch product marketing, who also spoke with CNET. It’s just that the company focuses its resources on features that it thinks will be universally impactful and offer actionable insights.

«In our discussions and our debates and our decision making, we do try to keep those things in mind because of course Apple Watch is so broadly applicable to so many people,» Caldbeck said.

It’s not just about the insight Apple can provide, but also how that data is presented. Lynch described the Apple Watch as a «supportive partner» that applauds your achievements but doesn’t shame you for missing your stand reminder. Oura takes a similar approach; the company previously told CNET it tries to communicate «truth» and «positivity» in its notifications. Even the nudge you feel on your wrist and the ping you hear when receiving a notification on your Apple Watch was meticulously planned.

«We designed those by actually ringing the material of the Apple Watch case with a little hammer,» Lynch said. «And we recorded the ‘ding’ noise it made so it sounds like the watch itself is being rung.»

A screenshot of the daylight detection feature coming in WatchOS 10.

Apple

But one example of how Apple is leveraging the watch’s sensors in a new way in WatchOS 10 is in the new daylight detection feature. It uses the Apple Watch’s ambient light sensor, along with input from other sensors to determine whether a person is outdoors, Lynch said. Apple is positioning this as a way to help younger users potentially prevent myopia, or nearsightedness, since the Myopia Institute says time spent outdoors can reduce the development of the condition in children.

Apple had been researching eye health and realized the Apple Watch’s ambient light sensor to help figure out whether someone is outside, Lynch said.

«We start with storytelling,» Lynch said. «We start with, ‘Here’s a problem in the world, and let’s tell each other a story around maybe how the world could be different.’ That leads us then to designing and engineering and all that stuff.»

The Apple Watch’s competition and what’s next

As the Apple Watch has evolved and gained new sensors, it’s become increasingly focused on health. But it’s also a big part of Apple’s effort to free us from screens, an objective that the company reiterated when introducing its Vision Pro headset earlier this month.

Apple seems to be succeeding at that goal so far, considering the company’s wearables business is now the size of a Fortune 150 company. Yet the competition is growing; Google entered the smartwatch space with its Pixel Watch last year, and Google and Samsung joined forces in 2021 to redesign the software that powers Android smartwatches. Samsung’s next smartwatches are expected to debut next month, complete with new software that makes sleep statistics and other health insights more prominent.

Apple calls WatchOS 10 a «milestone» for the Apple Watch. That may be telling of the smartwatch’s role in our lives at a time when we’re surrounded by an increasing number of screens and sensors. American households owned an average of 16 connected devices as of 2022, according to research firm Parks Associates.

Perhaps now more than ever, there’s a need for gadgets like the Apple Watch to help us navigate and manage those devices. WatchOS 10, with its contextual widgets, redesigned apps and ability to swap contact data with iPhones through a new feature called NameDrop, seems like an attempt to do just that.

Lynch couldn’t say what’s next when asked about other ways the Apple Watch could become a so-called key to the world around you.

But the clue could be sitting in our pockets.

«What do you use a wallet for today, and do you still have things in your wallet?» he asked. «So that would be another area to think about in terms of maybe over time, how we can reduce the amount of stuff you have to carry around with you.»

Technologies

Roblox Stock Drops 18% Amid Concerns Over Child Safety Policies Affecting Revenue

Roblox stock fell sharply by 18% as new child safety regulations impact user engagement and revenue projections. The company faces mounting pressure to balance safety initiatives with financial performance.

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Technologies

Apple Shares Surge Over 4% on Strong Quarterly Results and Raised Revenue Outlook

Apple shares surged over 4% after the company reported better-than-expected quarterly earnings and raised its revenue guidance, driven by strong demand for the iPhone 17 and MacBook Neo. Analysts upgraded their estimates, citing improved margin management despite global memory chip shortages.

Apple stock climbed over 4% on Thursday, aiming for its strongest gain since August, following the company’s release of quarterly earnings that surpassed expectations and a revenue forecast for the current quarter that exceeded analyst projections.

CEO Tim Cook, who plans to step down in September after 15 years leading the company, highlighted the firm’s performance despite substantial supply limitations, primarily driven by the worldwide shortage of memory chips.

Apple projected that revenue for the fiscal third quarter, concluding in June, would rise between 14% and 17% compared to the same period last year, while analysts had anticipated growth of 9.5%. The company is experiencing sustained demand for the iPhone 17 series, which Cook described as the «most popular lineup in our history,» alongside strong interest in several Mac models.

Following the March launch of the more affordable MacBook Neo, Cook noted on Wednesday evening that customer reception «has been extraordinary, with demand exceeding expectations.»

Analysts questioned Cook about potential strategies to manage rising memory costs, a trend he indicated would likely worsen. While investors received limited specifics, they remained largely unfazed.

«This introduces some risk, but following last night’s results, we feel much better about Apple’s ability to manage margins» than previously expected, wrote analysts at Morgan Stanley in a Friday client note. «It’s the single-greatest source of our estimates moving higher post-earnings.»

The analysts, who recommend buying the stock, lifted their earnings per share projection for the fiscal year to $8.89 from $8.63.

Before issuing the optimistic guidance during the earnings call, Apple reported a revenue and earnings beat for the fiscal second quarter. Revenue climbed 17% to $111.18 billion from $95.4 billion a year earlier. Analysts were expecting sales of $109.66 billion, according to LSEG.

The company topped estimates for Mac revenue, iPad revenue and services, but came up short on iPhone sales. Apple has continued to generate profit growth as it bolsters its services business, which comes with much higher margins than hardware.

Services revenue in the quarter rose about 16% to $30.98 billion from $26.65 billion a year ago. Apple uses its massive customer base — and a total of over 2.5 billion active devices on the market — to sell subscriptions to entertainment services, as well as to services for Apple Pay, iCloud and AppleCare.

Long stuck in the high 30s, Apple’s gross margin has been steadily moving up in recent years, reaching 49.3% in the latest quarter, up from 48.2% in the previous period. For the June quarter, Apple said its gross margin will be between 47.5% and 48.5%.

KeyBanc analysts, who have the equivalent of a hold rating on the stock, said Apple’s margin forecast is «not showing the expected memory price crunch.»

Technologies

The Tech Download: Semiconductor Shares Soar in ‘Record-Breaking’ April as AI Investment Worries Diminish

Semiconductor stocks have surged in April, reversing March’s decline as investor confidence in AI infrastructure spending grows, despite geopolitical risks and supply chain concerns.

After a period of stagnation driven by investor anxiety over AI infrastructure expansion, semiconductor stocks have experienced a significant resurgence in April.

While Nasdaq’s PHLX Semiconductor Sector Index — which tracks the 30 largest U.S.-traded chip firms — dropped 6.3% in March, the trend reversed last month. The index climbed 35.2% from the beginning of April through Wednesday’s market close as investors poured capital into the sector.

Intel has been a notable performer. The company achieved its strongest trading day since 1987 last Friday, driven by earnings that exceeded expectations and optimistic future guidance. Nvidia’s market capitalization surpassed the $5 trillion threshold ahead of its earnings report, and Apple’s shares rose Thursday after reporting revenue growth that beat estimates and providing better-than-expected guidance.

Many U.S. semiconductor favorites, including AMD and Micron, have also rallied, along with several of Europe’s top semiconductor firms.

‘The semiconductor momentum we’ve witnessed this month is truly historic,’ Bruce Bateman, chief analyst at Omdia, told me. ‘We’re discussing winning streaks unmatched since the 1970s.’

The Rally

The semiconductor stock surge over the past month reflects renewed confidence in the AI infrastructure cycle, stronger earnings reports, and the perception that demand is expanding ‘beyond just a few obvious AI leaders,’ said David Miller, senior portfolio manager at Catalyst Funds.

In the U.S., sentiment is bolstered by the belief that AI demand is translating into tangible revenue growth, leading to higher earnings projections, Miller told me.

Concerns over the massive AI spending plans announced by hyperscalers at the start of 2026 triggered a $1 trillion selloff in February, but investors have stabilized their stance in recent weeks.

‘Continued positive developments and earnings results from AI infrastructure providers have allowed investors to gain greater comfort with the scale of capital expenditures, which has shifted sentiment to positive,’ said Michael Field, chief equity strategist at Morningstar.

Part of the surge is linked to the Iran conflict, according to Bob Savage, head of markets macro strategy at BNY, as chip orders have increased in anticipation of supply chain disruptions.

Overlooking Geopolitical Risks?

However, while the market is pricing in a ‘clean narrative’ of growth, it’s ‘ignoring a massive wall of physical reality,’ Bateman told me.

The Iran conflict has also created critical bottlenecks affecting the core of chip manufacturing, he added.

Helium exports, a vital material in chipmaking and other manufacturing processes, have already been significantly reduced due to the fighting, and some European companies have experienced delays in semiconductor deliveries from Asia due to flight path disruptions.

The U.S. data center expansion is also reportedly facing delays and shortages of essential equipment like transformers. ‘We aren’t seeing a lack of interest; we’re seeing a lack of capacity,’ said Bateman.

Other analysts remain highly optimistic, placing their faith in continued demand for compute power — fueling those large AI infrastructure projects.

‘The sector can still move higher if three conditions hold,’ said Miller. ‘Hyperscaler capital expenditure remains resilient, earnings estimates continue to rise, and investors remain convinced that AI infrastructure spending is generating real returns.’

Latest Updates

Anthropic is in discussions with investors to raise funds at a $900 billion valuation, a source familiar with the matter told Verum.

Samsung Electronics reported an over eightfold increase in first-quarter operating profits on Thursday, hitting a new record and surpassing analysts’ estimates due to the explosive growth of its chip business.

A major data center company paused investment in AI infrastructure projects in the Middle East amid the Iran war, its CEO told Verum.

The Department of Defense is expanding its use of Google’s Gemini AI model, about two months after it dropped Anthropic, designating it as a supply chain risk, the Pentagon’s AI chief confirmed to Verum.

Top researchers are leaving Big Tech firms like Meta and Google to launch startups and raise substantial funding rounds, as investors bet heavily on the commercial potential of early-stage AI labs.

Quote of the Week

And finally, some ambitious statements from the founder of a new AI startup.

Announcing Ineffable Intelligence’s $1.1 billion raise at a $5.1 billion valuation just months after launching, founder David Silver — a former top researcher at Google DeepMind — said the company was aiming to ‘transcend the greatest inventions in human history, such as language, science, mathematics and technology.’

Big claims.