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Here are the limits of Apple's iOS 8 privacy features

Antone Gonsalves | Sept. 23, 2014
Apple's new passcode-based encryption for the iPhone and iPad can be circumvented and provides only limited protection to data.

Without naming Google, Cook made a point to emphasize that Apple's profits depended on selling hardware, not collecting customers' personal information and then selling it to advertisers.

"A few years ago, users of Internet services began to realize that when an online service is free, you're not the customer. You're the product," Cook said.

The privacy changes came after Apple suffered a black eye this month when cyber-thieves accessed celebrities' iCloud accounts and, in some cases, posted naked photos online. Apple found that the attackers did not compromise iCloud security, but obtained the credentials to the accounts some other way.

Apple beefed up iCloud security recently by introducing two-factor authentication, which was already available to people with an Apple account tied to iTunes and other services.

"Two-step verification is good, and long over-due," Rebecca Herold, a privacy adviser to law firms and businesses, said.


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