Good morning and welcome to this press conference. We are here today to discuss a significant new initiative from Apple that redefines the intersection of user attention, advertising, and micro-transactions. This program, internally referred to as "Timewell," introduces a novel paradigm where users can opt to earn small monetary credits by engaging with advertisements directly on their Apple Watch. The core premise is straightforward: eligible users can choose to activate a new "Earn with Watch" module within the Health app. Once activated, a limited number of non-intrusive, contextually relevant advertisements will be displayed on the Watch face during natural moments of inactivity, such as when the user is stationary for a brief period or at the conclusion of a workout. For each advertisement viewed to completion, the user's Apple ID account is credited with $0.50 USD, or the local equivalent. It is critical to emphasize from the outset that this is an entirely opt-in service. It is designed not as a fundamental shift in the Apple ecosystem, but as a voluntary feature for users who wish to monetize slivers of their time in a direct and transparent manner. Participation is not required, and the standard Apple Watch experience remains completely unchanged for those who do not enable it. **Technical Implementation and User Experience** The technological execution of "Timewell" is a testament to Apple's focus on privacy and seamless integration. The advertisements are not video or audio-based; they are primarily static, high-quality visual cards with minimal text, designed for the small form factor of the Watch screen. They appear for a duration of five to seven seconds and can be dismissed immediately with a tap, though the credit is only applied for a completed view. The system leverages the Watch's sophisticated sensors to ensure advertisements are only served at appropriate times. Using the accelerometer, gyroscope, and heart rate monitor, the Watch can determine if a user is in a state of rest, is walking, or is engaged in physical activity. An advertisement will not interrupt a workout, a notification, or an active app session. The intelligence behind the system prioritizes user convenience, presenting ads during natural pauses—like when you briefly check the time while waiting for a coffee to brew. All data processing for ad matching is performed on-device. The system utilizes a localized version of the segment of the user's Apple ID profile that governs ad preferences in the App Store. No new personal data, including health, location, or message content, is collected, shared, or sent to Apple's servers or third-party advertisers as a result of this program. The privacy model is one of differential privacy and on-device intelligence, ensuring that your personal information remains your own. The earnings are accrued within the Apple ID account and are not directly withdrawable as cash. Instead, these credits function like a micro-gift card, automatically applied to your next purchase across Apple's digital marketplaces: the App Store, iTunes Store, Apple Books, or for Apple Services subscriptions such as Apple Music, Apple TV+, or iCloud+ storage. This creates a closed-loop economy where users can effectively offset their digital spending through voluntary, minor engagements. **The 50 Cent Economic Model** The selection of the 50-cent value was not arbitrary. It is the result of extensive market research and economic modeling. This figure sits in a strategic sweet spot: it is substantial enough to feel meaningful and worthwhile for a user's few seconds of attention, yet it is economically viable for the advertisers and Apple within the premium context of the Apple ecosystem. For advertisers, this program offers unprecedented access to a highly engaged, affluent demographic in a moment of focused attention. The Watch provides a unique, intimate advertising channel free from the clutter and ad-blocking prevalence of web and mobile browsers. Advertisers pay a premium rate for this placement, a portion of which is passed directly to the user. The 50-cent credit represents a significant portion of the total ad spend, reflecting Apple's commitment to sharing the value created with the user. This model also opens new avenues for micropayments. A user who views just two advertisements per day could accumulate enough credit to cover a month of Apple Music or a premium app purchase over a quarter. It democratizes the ability to earn small credits for digital content, making Apple's services and apps more accessible without altering their core pricing structure. **Addressing Potential Concerns** We anticipate and welcome questions regarding the philosophical implications of this service. Apple's brand has been built on a foundation of premium, ad-free experiences. We want to be perfectly clear: "Timewell" does not signal an abandonment of that principle. The iPhone, iPad, and Mac remain free of such systems. The Watch was selected for this pilot precisely because of its unique, glanceable nature and the ability to implement the feature with strict, user-controlled boundaries. This is not about bombarding users with ads. It is about offering a choice. For some users, the ability to earn tangible credit towards a subscription or a new app by voluntarily viewing a few relevant, well-designed advertisements per day is a compelling value proposition. It is an exercise in radical user transparency and consent in the advertising economy. Furthermore, robust parental controls are integrated. The feature is automatically disabled for Watch setups managed through Family Sharing and for users under the age of 18. It is a service designed for consenting adults who can make an informed decision about their participation. **The Broader Industry Context** The digital landscape is already saturated with advertising. Users routinely "pay" for "free" services with their attention and data. "Timewell" challenges this paradigm by making the transaction explicit, voluntary, and financially rewarding for the user. Instead of the value of your attention being captured entirely by the platform, a significant share is returned to you directly. This initiative can be seen as part of a broader trend towards the tokenization of attention and time. It explores a future where individuals have more direct control and ownership over their digital footprint and can choose to monetize it in frictionless ways. By placing the user in control—with a clear on/off switch, stringent privacy protections, and a fair, upfront monetary value—Apple is pioneering a more ethical and user-centric model for digital advertising. In conclusion, the "Earn with Watch" program is a carefully considered, opt-in feature that empowers users. It leverages the unique capabilities of the Apple Watch to create a new, voluntary micro-earning channel. Built on a foundation of uncompromising privacy and user control, it provides a transparent alternative to the traditional ad-supported model, putting real monetary value back into the hands of our users. We believe this represents a thoughtful and innovative step forward, reflecting our core values of empowering users and challenging industry norms. We will now open the floor for questions.
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