Report: Apple reduces employees’ AI token allowances as Ternus moves to cut costs

9to5mac.com Nov 4, 2026

Report: Apple reduces employees’ AI token allowances as Ternus moves to cut costs

Curated by Shubham · TechCapsules · Nov 4, 2026

AI-summarised brief · reviewed before publication

Apple has lowered its employees’ daily AI token spending limits as part of CEO John Ternus’ cost‑cutting drive. Engineers’ allowances were cut from $300 to $200, with plans to reduce some teams’ caps to $100 or even $25. The move follows rising AI tool costs and a broader industry trend of curbing token usage. Employees can request exemptions, and Apple encourages cheaper or local models. The policy reflects the company’s effort to manage its $45.8 billion R&D spend, which rose 32% last year.

💡 Why It Matters

· By tightening AI budgets, Apple signals a shift toward more disciplined resource use amid escalating R&D costs, potentially reshaping how developers leverage AI in product development.

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Apple iPhone Duo review: the greatest iPhone ever made

Apple unveiled its first foldable, the iPhone Duo, priced at over $2,000. The device features a D‑shaped design, a nano‑textured folding display, and a versatile hinge that supports multiple angles. While the camera performance falls short of Pro‑level expectations and multitasking lags behind Android rivals, the Duo offers strong battery life, IP68 durability, and seamless integration with Apple’s ecosystem. Reviewers note that the developer ecosystem unlocks unique experiences, making the phone more useful than its hardware compromises suggest.

💡 The iPhone Duo signals Apple’s entry into foldable phones, challenging Android’s long‑standing dominance and potentially reshaping how developers create apps for flexible displays. Its high price and design choices may set new standards for premium mobile form factors.

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StandBy on iPhone Duo is even better than you thought

Apple’s iPhone Duo expands the StandBy feature, allowing the phone to serve as a glanceable display whenever it is not in use, not just while charging. The 7.6‑inch Duo screen can show time, date, calendar, weather, photos, and customizable widgets. StandBy activates automatically in tent mode or when the Duo is propped upright, and offers a Night Mode that turns the display red for sleep. Users can choose from pre‑set “faces” or create custom layouts for different contexts.

💡 By freeing StandBy from the charging constraint, the iPhone Duo turns idle devices into functional desk or bedside displays, reducing the need for separate gadgets. This shift enhances daily productivity and sleep hygiene through a single, versatile Apple product.

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Next year’s iPhone Pro redesign gets new update from leaker

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💡 The decision to keep the Dynamic Island signals that Apple prioritizes familiar user experience over a fully glass‑front aesthetic, potentially influencing consumer expectations for future flagship designs.

appleinsider.com · Nov 4

How to use iPhone Duo Reachability in iOS 27.3 beta

Apple’s iOS 27.3 beta introduces Reachability for the iPhone Duo, a foldable device with a large internal display. The feature temporarily shifts the screen’s left or right side toward the opposite edge with a short swipe, enabling single‑hand access to the entire interface. Users enable it via Settings → Accessibility → Reachability. This horizontal reachability mirrors the vertical Reachability already available on other iPhones, addressing thumb‑reach limitations on the Duo’s expansive screen.

💡 By expanding thumb reach, Apple improves usability for a niche foldable market, potentially setting a new standard for large‑screen ergonomics.

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macOS 27.3 brings Live Activities to all supported Macs

Apple has expanded Live Activities, a feature that displays real‑time updates in a bubble at the top of the screen, from iPhone and iPad to all Macs that can run macOS 27.3. The beta release confirms that every Apple Silicon Mac—including older M1 MacBook Pro and MacBook Air models—will receive Dynamic Island and Live Activities. Built‑in apps such as Apple Music, Clock, and Voice Memos will support the feature, and developers can add third‑party Live Activities.

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Apple employee AI budgets cut to reduce costs

Apple has slashed internal AI budgets, cutting per‑engineer allocations from $300 to as low as $25, according to Bloomberg. The move reflects the company’s reassessment of third‑party AI costs amid diminishing returns. Employees can still request higher allowances on a case‑by‑case basis, but overall funding has been reduced by up to a third. Apple is simultaneously developing its own foundation models and leveraging local Mac hardware to reduce reliance on paid AI tokens. The shift signals a broader industry pullback from experimental AI spending.

💡 The budget cuts underscore a growing industry trend to curb AI expenses as early hype wanes. They also highlight Apple’s strategic pivot toward in‑house AI solutions, potentially reshaping how the company innovates and competes in the tech market.