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I think even Gmail proxies images and GIFs so how would Apple's implementation be different? A genuine question.

Also I have seen with many clients especially in outlook and Zoho mail where they specifically ask to load images or not, and I beleive even they proxy images through their servers not revealing your public IP

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Gmail proxies, but does make the request when the email is opened - you can track that it was opened. Apple says they will block tracking pixels entirely.

I believe Apple just doesn't block it. It by default downloads all pixels (and images) for all emails so the sender cannot know if and when the reader actually opened it. It will by default show 100% open rate. But, won't it be a problem? like some malicious actor could send lots of emails with 10s of MBs of image embeds and if Apple Mail automatically downloads it, then the storage will unnecessarily fill up. Is there a countermeasure to it which Apple has mentioned?

Gmail and Outlook will block images if you turn on that feature. I assume that this applies to the tracking pixels as well as display images.

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