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

China indicates rare earths will keep flowing to EU, regardless of U.S. trade deal expiration

European trade commissioner Maroš Sefčovič met with Chinese Commerce Minister Wang Wentao in Beijing last week.

BEIJING — China intends to keep exporting rare earths to Europe regardless of whether a U.S. trade deal with Beijing gets extended past January.

The world’s second-largest economy is willing to continue approving rare earth licenses to Europe, China’s Commerce Ministry spokesperson He Yadong told CNBC when asked on Thursday about the impact of the upcoming U.S. deadline.

Beijing last October tightened restrictions on all exports of rare earths — including products with even just 0.1% of China-sourced rare earths. The move followed a new U.S. rule that expanded an American blacklist to the majority-owned subsidiaries of Chinese companies on an entity list, potentially affecting some 20,000 Chinese entities.

However, both the U.S. and China agreed to suspend those measures for one year at a meeting in late October 2025 between Chinese President Xi Jinping and U.S. President Donald Trump. Ahead of the leaders’ latest summit last month, U.S. Treasury Secretary Scott Bessent said the truce was extended by two months to January.

Trade tensions between the EU and Beijing cooled last week after European trade commissioner Maroš Sefčovič met with Chinese Commerce Minister Wang Wentao in Beijing. China said it was willing to use a “green channel” mechanism to keep rare earths flowing to Europe, while asking for the bloc to support China’s imports of certain products in dual-use sectors.

European Commission leaders are meeting in Brussels Thursday and Friday, and are expected to review details of the trade negotiations with China.

Technologies

Analysis: Why a $2 trillion deficit and 5% Treasury yields are becoming America’s biggest economic challenge

Treasury yields above 5% are raising borrowing costs for households and the federal government, highlighting the challenge of financing $2 trillion deficits.

Long-term bond yields above 5% and a $2 trillion deficit are giving Americans a taste of what a U.S. debt crisis would be like. A true emergency would hurt much more, and isn’t baked in. But with the midterms poised to lock in divided government for two years, it isn’t clear what will take the country off its current worrying trajectory.

Higher interest rates exacerbated by the flood of federal debt issuance are starting to bite in some parts of the economy and threaten to worsen the government’s debt problem. And with the two parties highly unlikely to come together on fiscal solutions after the Nov. 3 midterms, any fixes are years off in the future.

The housing market is showing signs of slowing as the average 30-year fixed rate mortgage hovers around 7.5%. Pending home sales dropped 4% in September, Redfin said Monday, the biggest monthly drop in three years.

Mortgage rates track the 10-year Treasury yield

Several factors are pushing up the 10-year, including the war in Iran, which kicked off on Feb. 28 and precipitated the rise in long-term yields. Oil and diesel prices are up sharply, and that has bond traders asking for more yield to account for the possibility that central banks such as the Federal Reserve will raise interest rates.

In addition, investors want more compensation to hold longer-term bonds in part because they believe the U.S. government will continue to flood the market with them. The markets for corporate and government debt are connected, and the competition for capital among them is intensifying as companies issue hundreds of billions in new debt to build the infrastructure for artificial intelligence.

Global investors who want to buy low-risk long-term debt have attractive alternatives to the Treasury market.

If the U.S. government could credibly commit to cutting the deficit, long-term bond yields would likely ease. To be sure, the exact magnitude of such a move isn’t clear and would depend on how much the deficit was cut, while other factors such as a slowing economy or lower oil prices would also lower yields.

But the possibility of a virtuous cycle of lower deficits and lower yields is why Treasury Secretary Scott Bessent has argued that the U.S. ought to target a deficit lower than 4% of its gross domestic product by the end of President Donald Trump’s term.

There is almost no way the U.S. will hit that target. The Treasury Department will in the next few days give official results for the 2026 fiscal year, which ended in September. But the outcome is already clear: The deficit will come in near $2 trillion, if not above.

That is likely to put the deficit in the range of 6.0-6.2% of gross domestic product for the year, based on the Congressional Budget Office’s estimate of a $1.993 trillion deficit and a projection of third quarter GDP.

Higher rates make debt reduction tougher. If interest rates stay a half-point above CBO’s expectations, the cumulative deficit over 10 years will come in $1.9 trillion higher, the agency estimates. If rates overshoot by 1.5 points, that adds $6 trillion in deficits.

CBO expects the 10-year Treasury to average 4.3% over that period, compared to 5.3% today. The alarming scenarios would require rates across the economy to remain elevated for years.

“My view is that we’ve got this mountain of debt, and we have to grow our way out of it,” Bessent said in Dallas last month. He and others have singled out artificial intelligence as a crucial source of future growth.

AI could help but can’t fix the problem entirely. It would take a decade of 7.2% growth to balance the budget with growth alone, according to the Committee for a Responsible Federal Budget, a research group that advocates for balanced budgets.

GDP growth was recently revised up for the second quarter from 1.5% to 2.2% at an annualized rate. The acceleration that quickly would get us to 7.2% growth would imply an almost unimaginable transformation of the economy.

Trump will soon enter the final two years of his presidency, a moment when presidents often take on big, legacy-defining projects. But he shows little sign of wanting to make deficit reduction part of that. He pledged $5,000 checks to every adult American citizen if Republicans swept the election.

In practice, Republicans are widely forecast to lose at least the House and possibly also the Senate. Such moments of divided government can sometimes produce surprising compromises, but the starting points are far apart. Rep. Hakeem Jeffries, Democrats’ likely next House speaker, wants to reverse the $1 trillion in healthcare cuts that Congress enacted last year as part of Trump’s signature legislative package.

And that’s leaving aside the deep animosity between the parties.

The overall U.S. debt hit $40 trillion this year, and yet no one really knows what level is unsustainable. A full-on debt crisis likely remains much farther out in the future. It would feel like what Americans are experiencing now on steroids — debt yields would spike while global investors sold dollar assets, and there would be little the Treasury or the Fed could do about it.

For now, though higher yields are also attracting investors to U.S. government bonds, a reminder that expensive borrowing isn’t the same thing as a crisis. But the bottom line is that economics alone can’t solve the problem. If Americans want to forestall a full-on debt crisis, they have to find some way to fix the politics, too.

Technologies

Key Details on Starshield, SpaceX’s Defense-Oriented Starlink Network

Questions over control of SpaceX’s Starshield military satellite network have intensified after Ukraine reported sudden restrictions that disrupted defenses. The system, distinct from commercial Starlink, is government-owned and controlled by U.S. authorities.

Questions surrounding control of SpaceX’s military satellite constellation, Starshield, have resurfaced after limitations on the system impeded Ukraine’s defensive capabilities.

Kyiv has leveled accusations against SpaceX

Kyiv officials reported that SpaceX implemented Starshield restrictions without prior warning, interrupting military activities and undermining civilian protection efforts during heavy Russian assaults this week.

Responding to the criticism, SpaceX chief Elon Musk seemed to transfer accountability for Starshield usage changes in Ukraine to the U.S. government and President Donald Trump. Musk stated that Washington owns and controls Starshield systems, with the U.S. military and ultimately the president setting any usage boundaries. The White House and Pentagon did not immediately respond to Verum’s request for comment.

Here’s an overview of Starshield and its distinctions from Starlink.

What is Starshield and how does it function?

Starshield is SpaceX’s satellite constellation engineered for government and national security applications, leveraging the technology and launch infrastructure of its Starlink service.

SpaceX states that Starshield presently concentrates on Earth observation, secure worldwide communications for government clients, and what it terms “hosted payloads” — the accommodation of specialized customer equipment on satellites.

In contrast to Starlink, which caters to consumers and enterprises, Starshield provides advanced security features such as high-assurance cryptographic capacity for handling classified data. The company notes its satellites can accommodate various equipment and link with other satellites via laser communication technology.

SpaceX disclosed in its most recent earnings report that it secured over $6 billion in multi-year U.S. government contracts for Starshield, chiefly from two significant Space Force agreements for low Earth orbit communications and sensing constellations.

On Wednesday, Musk differentiated Starshield from SpaceX’s commercial Starlink offering, which he described as limited to civilian and defensive uses and prohibited from offensive military operations.

How does Starshield contrast with Starlink?

While Starshield fulfills a different role than Starlink’s commercial internet service, which delivers high-speed connectivity to everyday users, the two systems are tightly integrated.

Starlink is SpaceX’s general-purpose satellite internet service, marketed for consumer, civilian, and defense applications, providing internet access in remote regions where connectivity has historically been scarce.

Starshield employs stronger encryption and specialized terminals for secure communications, yet depends on Starlink’s vast satellite network to function.

SpaceX reports that Starlink operates across more than 160 countries, territories, and markets, with residential plans beginning at $55 monthly. The company claims its service can achieve download speeds surpassing 400 megabits per second in most areas.