Apple’s Tim Cook dismisses larger screen rumors for iPhone, cites trade-offs

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Date: Wednesday, April 24th, 2013, 06:10
Category: Hardware, iPhone, News

It’s the post-event questions that get interesting.

Per iMore, asked during today’s Q2 2013 fiscal results conference call as to whether or not Apple’s and CEO Tim Cook’s disinclination towards larger screens has changed, Cook said that there are a number of trade-offs that have come with larger screens. He said that Apple’s own research has revealed while some customers obviously place value on larger screen sizes (those giant Samsung, LG, and HTC phones wouldn’t be selling otherwise), others value resolution, color quality, brightness, portability, and app compatibility. He said that “our competitors have made significant trade-offs in many of these areas” and that Apple would not launch a larger-screen iPhone while these trade-offs exist.

It’s worth taking into consideration that Apple said similar things running up to the launch of the iPhone 5 and its larger screen, and Cook said as recently as the last quarter that he’s happy with the 4-inch screen. It’s also worth nothing that while Cook says he believes the iPhone 5 has “the absolute best display in the industry”, the advent of 1080p smartphone screens has obviated some of his stated advantages such as resolution.

Stay tuned for additional details as they become available.

Apple Store app hits version 2.6, now includes iPhone upgrade pricing notification feature

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Date: Wednesday, April 24th, 2013, 06:19
Category: iPhone, News, Software

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Ok, now this is sort of a nifty update.

On Wednesday, Apple released version 2.6 of its iOS Apple Store program. The new version, a 6.1 megabyte download, has been updated with bug fixes and offers a new feature that will notify you when you’re eligible for upgrade pricing on a new iPhone. You can even buy your new iPhone directly with the app after receiving the notification since all you need is your Apple ID credentials to do so.

The updated Apple Store will now help you keep track of your shipments and send you notifications about important updates, and when it has been delivered.

The iOS Apple Store program 2.6 requires iOS 5.0 or later to install and run.

Cool stuff and I’m waiting for the upgrade price for my beloved-but-battered iPhone 4S handset…

Apple reports Q2 2013 profit of $9.5 billion, revenues of $34.6 billion

Posted by:
Date: Tuesday, April 23rd, 2013, 14:50
Category: Finance, iPad, iPad mini, iPhone, News

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It’s 18% lower than it was last year, but it’s still US$9.5 billion in the bank…

Per AppleInsider, Apple on Tuesday said second quarter profits fell roughly 18% to US$9.5 billion — or US$10.09 per diluted share — despite record second quarter sales of US$43.6 billion — the first year-over-year decline in earnings for the one-time tech darling in nearly a decade.

The results for the three-month period ended March 30, 2013 compare to revenue of US$39.2 billion and net profit of US$11.6 billion, or US$12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent, approximately 100 basis points lower than the 47.4 percent reported in the year-ago quarter, as consumers gravitated to more affordable, lower-margin products like the iPad mini.

During the quarter, Apple sold 37.4 million iPhones and 19.5 million iPads, compared to 35.1 million iPhones and 11.8 million iPads in the year-ago quarter. The company also said it sold just under 4 million Macs, compared to 4 million in the year-ago quarter. Overall, international sales accounted for 66 percent of the quarter’s revenue.

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

Looking ahead to the current June quarter, Apple provided following guidance:
– Revenue between US$33.5 billion and US$35.5 billion.

– Gross margin between 36 percent and 37 percent.

– Operating expenses between US$3.85 billion and US$3.95 billion.

– Other income/(expense) of US$300 million

– Tax rate of 26%.

“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Apple CFO Peter Oppenheimer.

For Apple, Tuesday’s results mark the first year-over-year decline in profits since the first quarter of 2003 when the “early 2000s recession” began to set in stateside.

Stay tuned for additional details as they become available.

iPhone 4 “Antennagate” owners beginning to receive settlement checks from Apple

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Date: Tuesday, April 23rd, 2013, 06:48
Category: iPhone, Legal, News

It’s not a whopping amount of justice, but it’s still justice.

Or at least a settlement.

Per 9to5Mac, iPhone 4 owners who participated in a class action lawsuit against Apple over antenna attenuation complaints are finally starting to receive settlement checks.

More than a year ago, Apple reached a settlement with attorneys for the class action complaint, agreeing to pay US$53 million to make the problem go away after supposedly “misrepresenting and concealing material information in the marketing, advertising, sale, and servicing of its iPhone 4 — particularly as it relates to the quality of the mobile phone antenna and reception and related software.”

Owners who cashed in on Cupertino’s earlier offer of a free bumper or case were not eligible for the settlement, so if you haven’t seen a check, that could be why. According to recipients, the settlement checks for a whopping US$15 were issued on April 17 and must be cashed by July 16, 2013 or they are null and void.

Why only 15 smackeroos? Apparently the class action lawyers took home a US$16 million fee from the settlement, which doesn’t make anyone feel any better…

If you’ve received a settlement check for the iPhone 4 antenna issue, please let us know in the comments.

Rumor: Purported images of next-gen iPhone camera leaked

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Date: Friday, April 19th, 2013, 07:50
Category: Hardware, iPhone, Rumor

You’ve gotta admit, Apple doesn’t let people down when it comes to its built-in cameras.

Per French Web site NoWhereElse.fr, a leaked image purporting to show off a camera component and another piece of a supposed “iPhone 5S” have hit the Internet, fanning the rumors that Apple’s follow-up to the iPhone 5 is on deck.

One of the components featured in the supposed leak is what appears to be a front-facing camera, similar in appearance to the one built in to the iPhone 5. The serial number shown on the “leaked” part is similar to the one seen on the iPhone 5 part, notes NoWhereElse.fr. The flexible portion where the component connects to a motherboard, though, is apparently quite different from the one seen on the iPhone 5 component.


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Friday’s report also brought images of another supposed component, though its function is unclear.

The same site previously leaked components that went into Apple’s new Lightning connector, and the site has shown off other parts said to be from an “iPhone 5S” or an “iPhone 6,” as well as a supposed cover glass surface from a fifth-generation iPad.

The new images appear to add to the rumors that Apple will bring a rapid follow-up to its iPhone 5, iPad, and iPad mini, and possibly introduce a lower-cost iPhone model in the near future. Currently, rumors have the Cupertino company releasing new devices some time over the summer.

Stay tuned for additional details as they become available.

Foxconn begins gearing up for iPhone 5S mass production

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Date: Tuesday, April 16th, 2013, 07:38
Category: Hardware, iPhone, News

Don’t worry…your next-gen iPhone is en route.

Or at least being constructed.

Per iMore and the Wall Street Journal, Apple has been targeting an August time frame for the next-generation iPhone 5S, and while that may or may not include more recently rumored software scheduling issues, it does sound like the general time frame is still accurate enough for Foxconn to start ramping up for production. Lorraine Luk of the Wall Street Journal writes:

[Foxconn] said Monday it has added about 10,000 assembly-line workers per week in Zhengzhou, its major production facility for iPhones, since the last week of March.

“We have been very busy recently as we will start mass-producing the new iPhone soon,” said a Zhengzhou-based executive who has direct knowledge of production plans.

If Apple sticks to its 2009 and 2011 pattern of keeping the same casing two years in a row and releasing an S-class update, then presumably it’ll be an easier ramp up than last year where the manufacturing technology needed to produce the insanely redesigned iPhone 5 led to the usual transitional hiccups and supply constraints.

If that’s the case, then software and services, namely iOS 7, and iCloud could be the major factors in determining the final release window for Apple next iPhone.

To date, every new iPhone has shipped with a new version of iOS, and the iPhone 4S shipped with iCloud. That coupling makes for greater product impact, but also greater dependency.

Hopefully, if hardware is ramping up, that’s a sign everything else is also starting to line back up.

Stay tuned for additional details as they become available.

Foxconn ends hiring freeze, hires additional workers to build next-gen iPhone handset

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Date: Monday, April 15th, 2013, 07:03
Category: iPhone, News

Not to worry, Foxconn will have enough people on board to construct the next-gen iPhone.

Per Bloomberg, after a brief freeze on hiring, Foxconn has allegedly begun adding employees again at one of its Chinese factories — a move said to be made in anticipation of Apple’s next iPhone.

Foxconn is in the process of gearing up to build Apple’s 2013 iPhone, a source stated to Bloomberg. The handset is commonly referred to as a so-called “iPhone 5S,” though the actual name for the unannounced product remains unknown.

A hiring freeze was instituted by Foxconn in February after more workers returned from the Chinese New Year break than did last year. Some had speculated the freeze may have been related to weaker-than-expected demand for the iPhone 5.

The new hires at Foxconn were reportedly requested by Apple to boost capacity in anticipation of its next flagship smartphone. In addition to assembling the “iPhone 5S,” the employees are also expected to handle existing models, such as the iPhone 5 and iPhone 4S.

Rumors as to when Apple plans to launch its next iPhone have been varied, with some expecting a new handset to be unveiled as soon as June, which would mark less than a full year after the launch of the iPhone 5. In contrast, well-connected analyst Ming-Chi Kuo said last week that he expects Apple to face a number of technical challenges in assembling the “iPhone 5S.”

According to Kuo, Apple is planning to include a fingerprint scanner underneath the home button of its next iPhone. This feature would allow users to bypass password entry and could potentially open the door to e-wallet functionality, but the inclusion of a fingerprint scanner is expected by Kuo to cause the “iPhone 5S” to launch later than some expect.

“Apple has to work out how to prevent interference from the black and white coating material under the cover glass,” Kuo said. “Apple is the first to attempt this function and technology, and time is needed to find the right coating material, which will likely affect iPhone 5S shipments.”

Stay tuned for additional details as they become available.

Rumor: Next-gen iPhone to arrive later than usual launch date, development issues cited

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Date: Friday, April 12th, 2013, 08:20
Category: Hardware, iPhone, Rumor

The next-gen iPhone may be a bit late in arrival.

Per ” target=”_blank”>AppleInsider, Ming-chi Kuo of KGI Securities, who has a strong track record in revealing Apple’s future product plans, shared a research note on Thursday that suggested Apple’s so-called “iPhone 5S,” a rumored low-cost iPhone, and a second-generation iPad mini will all launch later than market consensus expects.

These apparent delays are driven by a variety of issues, according to Kuo. For the “iPhone 5S,” he said Apple plans to include a fingerprint sensor that poses a number of technical challenges. An “iPhone 5S” fingerprint sensor, Retina display for next iPad mini, and ultrathin plastic casing for low-cost iPhone are expected to cause production challenges for Apple.

“Apple has to work out how to prevent interference from the black and white coating material under the cover glass,” he said. “Apple is the first to attempt this function and technology, and time is needed to find the right coating material, which will likely affect iPhone 5S shipments.”

Kuo has previously claimed that Apple plans to integrate a fingerprint sensor beneath the home button the next iPhone. This new technology would allow users to bypass password entry, and could also allow Apple to integrate secure e-wallet functionality.

Another hold-up for the next iPhone, according to Kuo, is the development of iOS 7, Apple’s anticipated next-generation mobile operating system. The analyst said Thursday that more time is likely to be needed for software development and testing, particularly with respect to the fingerprint scanning functions that will be included with the software.

As for the rumored low-cost iPhone said to be in the works at Apple, Kuo said Apple faces challenges with the casing on the device. He expects that the low-end iPhone will have a plastic casing that will be slimmer than such casings regularly are. Kuo correctly predicted the bulk of Apple’s 2012 product lineup. This year, he sees iPhone and iPad sales shrinking to single-digit growth in the third quarter because of apparent behind-the-scenes production delays.

“The slimmer casing may make it more difficult to ramp up production yields of coating and surface treatment, and could slow down the shipment timetable,” he said.

Finally, Kuo said the “iPad mini 2” faces challenges with its display panels, as he expects Apple will opt to include a high-resolution Retina display with the second-generation device. This is expected to make the device more difficult to manufacture, which could delay shipments.

As a result of these issues, Kuo said it’s likely that Apple will see single-digit growth in iPhone and iPad shipments in the third quarter of 2013. That would be well below the market consensus, which sees Apple growing its sales by between 30 and 40 percent with the introductions of new products.

Stay tuned for additional details as they become available.

T-Mobile boosts incentives prior to iPhone launch, begins trade-in program for iPhone 4, 4S users

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Date: Wednesday, April 10th, 2013, 07:08
Category: iPhone, News

When in doubt, offer all the incentives you can.

Per 9to5Mac, T-Mobile USA announced the latest move in their continuing initiative to lure iPhone users to their network, which currently boasts the smallest subscriber base in the country. The new iPhone trade-in program allows subscribers switching to T-Mo from other carriers to recieve deep discounts on the iPhone 5 by swapping out their older model.

According to a press release from the magenta-branded company, the down payment on the iPhone 5 will completely vanish when customers trade in an iPhone 4 or 4S, and a US$120 credit will be applied to the monthly payment for the phone, essentially cutting the price down to only US$15 a month for the remainder of the two-year don’t-call-it-a-contract “agreement.”

The iPhone 5 doesn’t officially hit T-Mobile until April 12th, but pre-orders have been open since last Friday. Some early buyers may be disappointed to learn that they could have saved quite a bit of money if only they had waited an extra seven days.

The press release specifically lists the 4 and 4S models as being tradeable, which may mean iPhone 5 owners on AT&T won’t be able to get in on the savings by trading in their current-generation devices for the updated versions that work on T-Mobile’s AWS bands. That means those customers will have to stick to their existing handsets with the latest carrier software, which will enable LTE speeds, but will not allow use of T-Mobile’s “4G” network. Instead these models will be forced to use slower speeds due to hardware differences.

If you’ve pre-ordered an iPhone from T-Mobile or want to hurl your two cents in, let us know what you make of this in the comments.

Apple receives patent for offline purchasing system

Posted by:
Date: Tuesday, April 9th, 2013, 07:46
Category: iOS, iPhone, iPod Touch, News, Patents, Software

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Ok, this is interesting.

Per the United States Patent and Trademark Office and AppleInsider, Apple on Tuesday was awarded a patent for an offline purchasing system that would allow iTunes users to buy music, movies and other media when not connected to the internet.

The U.S. Patent and Trademark Office granted Apple U.S. Patent No. 8,417,575 for “On-device offline purchases using credits,” which describes a system involving the purchase of offline credits stored on a given device that can be put toward media in the iTunes store even when not connected to the online marketplace.

Currently, iTunes users must be logged in or have an internet connection to successfully purchase and download content from the online storefront, but Tuesday’s patent lays the groundwork for a type of “pre-loaded” payment system. Beyond the obvious applications for on-the-go iPod touch users and perhaps frequent travelers, the patent could be a harbinger of new never before seen iTunes functionality.

According to Apple, the proposed service involves media stored on an electronic device, like an iPhone or iPod touch, that is not part of the user’s owned library. If a user wants to buy a track, but cannot connect to the Internet to provide a means of payment, they can use pre-paid credits previously purchased through the store and subsequently loaded onto the device. Once a data network is accessed, the appropriate deductions are made to a user’s on-board credit allotment.

Users can add credits to their device accounts either through the device itself or what appears to be a specialized portal on the desktop version of iTunes, along with other options. Multiple forms of payment are accepted, including credit cards, bank accounts and other digitally connected assets a user links to their online profile.

As noted by the patent, in order to play back a purchased song or movie, a device must first have a copy of said media item, as well as authorization to play back the content. The device can retrieve copies of “unauthorized” media in any number of ways, including recommendations downloaded from the media store. Carrying on with the recommendation example, the device can restrict access to the content in any number of ways until authorization, or a purchase, has been detected. In some instances, the media might be played back at a lower quality, or there could be a limit to how many times a track is played.

The locally-stored media can be displayed in a variety of arrangements, including a layout similar to the existing iTunes iOS app, making browsing and buying new content easy. Once a user makes a selection, they can purchase the locally stored media with the credits they bought in advance, which will remove the restrictions previously imposed on the content. In other words, the authorization and playback transaction would be fully completed offline.

The property could be a boon for iTunes users who don’t have ready access to the Internet and, if made real, would likely drive sales for the digital music giant. Specific implementations were not thoroughly discussed, though Apple already has iTunes Match, which allows users iCloud access to their entire music collection, even tracks imported from CDs, for a yearly fee. While mere speculation, further cloud computing integration could bring even more tie-ins with the offline purchasing service, such as music sharing or gifting.

It remains unknown if and when Apple plans to roll out the offline crediting functionality, but the device-specific solution could theoretically be implemented with a firmware update as no hardware limitations were described in the patent.

Apple’s offline purchasing patent was first filed for in 2010 and credits Taido Nakajima, Tyler Mincey, Gloria Lin and Joey Darragh as its inventors.

Stay tuned for additional details as they become available.