Apple Inc. (NASDAQ:AAPL) faces new criticism over its upcoming iOS 26 spam filtering feature, which the National Republican Senatorial Committee (NRSC) warns could slash political fundraising revenue by hundreds of millions of dollars.
What Happened: The iPhone maker’s latest update, scheduled for mid-September rollout, will automatically filter text messages from unknown senders into a separate “Unknown Senders” folder without notifications. Users must manually check this folder and mark messages as known or delete them.
According to a July 24 memo from the NRSC obtained by Business Insider, the feature could cost the GOP committee $25 million in lost revenue and trigger $500 million in losses across all Republican campaigns. The estimate assumes 70% of small-dollar donations originate from text messages and iPhones represent 60% of U.S. mobile devices.
“That change has profound implications for our ability to fundraise, mobilize voters, and run digital campaigns,” the NRSC memo stated. The committee called the feature “voter disenfranchisement” and urged Apple to delay implementation.
Apple senior executive Darin Adler defended the feature at June’s Worldwide Developers Conference, saying users would still receive “important time-sensitive messages” like verification codes. The company declined to comment on the NRSC’s concerns.
Why IT Matters: The controversy adds to Apple’s mounting regulatory challenges across key markets. Meta Platforms Inc. (NASDAQ:META) recently announced it will ban political advertising in the European Union starting in October due to “unworkable requirements” under new transparency rules. Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) made similar moves last year.
Democratic digital fundraising expert Mike Nellis of Authentic criticized campaigns’ reliance on potentially misleading text strategies. “If you’re panicking about losing $500 million in revenue, it probably means you were scamming people in the first place,” Nellis told BI.
The iOS 26 backlash comes as Apple stock trades down 12.22% year-to-date versus the S&P 500’s 8.88% gain. Needham analyst Laura Martin warns Apple faces “existential threats” without a clear generative AI strategy, potentially requiring $30-50 billion in additional capital expenditure to compete with rivals.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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