Apple’s sixth-generation iPhone may be one of the last products unveiled by the Cupertino, California-based technology giant that was designed by Steve Jobs. The company’s late co-founder and chief executive worked very closely on the retooled iPhone before his untimely passing last October, Bloomberg reports. The news organization also reiterates earlier claims that the next-generation iPhone will feature a larger display than the 3.5-inch panel utilized by its predecessors. BGR exclusively reported last year that Apple plans to launch a completely redesigned iPhone this fall that features a new antenna system and a new case, likely comprised of glass and aluminum. Apple’s sixth iPhone is also expected to include a larger 4-inch display and 4G LTE connectivity.
HTC is in a tough spot as two of its new flagship smartphones — smartphones it desperately needs to make available in the United States as it attempts to mount a comeback — are currently held up in Customs due to a patent spat with Apple. The Taiwan-based vendor issued a statement earlier this week claiming that its devices comply with an order issued by the International Trade Commission, thus suggesting the ITC will release the shipments soon. According to a report from The Verge, this is indeed the case and HTC used custom Android builds to dodge the Apple patents in question. The report claims HTC circumvented the use of Apple’s protected ”data tapping” functionality by implementing a new settings menu that allows the user to adjust default app associations. HTC and Sprint will still miss the scheduled launch of the EVO 4G LTE but if the report is accurate, HTC’s new flagship phones should clear Customs soon.
Apple’s display suppliers are reportedly preparing to undergo a certification examination as rumors surrounding a smaller version of Apple’s wildly popular iPad tablet continue to swirl. Taiwan-based news organization The Liberty Times on Thursday reported that display panel suppliers LG Display and AU Optronics are currently readying their lines and sample panels for a certification exam. Assuming all goes as planned, the manufacturers will reportedly split production of 6 million “iPad mini” screens ahead of the tablet’s launch later this year. TPK Holding and Chimei Innolux are said to be supplying backlight modules for the new slate. Apple is rumored to be developing an ultra-thin iPad mini that will launch in the fourth quarter this year. The tablet will seemingly feature a display that measures 7.85 inches diagonally, and a recent report suggested that Apple intends to launch a fierce attack on low-cost tablets from Amazon and Barnes & Noble by pricing the iPad mini between $200 and $250.
[Via Macotakara]
Some believe Siri is a driving force behind Apple’s record-breaking iPhone 4S sales, but not everyone is impressed with the Cupertino, California-based company’s virtual assistant. Apple’s TV ads depict Siri as an impressive, fast-acting feature that intelligently offers help or information in responds to a wide range of and commands. A number of users have found that Siri is not as helpful as Apple leads consumers to believe, however, and the company has been hit with a number of lawsuits as a result.
Apple was sued in March by a New York man, Frank Fazio, who alleges that Apple’s Siri commercials are misleading and deceptive. “On many of Apple’s television advertisements, individuals are shown using Siri to make appointments, find restaurants, and even learn the guitar chords to classic rock songs or how to tie a tie,” Fazio’s complaint reads. “In the commercials, all of these tasks are done with ease with the assistance of the iPhone 4S’s Siri feature, a represented functionality contrary to the actual operating results and performance of Siri.”
Apple’s recommendation to Fazio: buy a different phone.
While Fazio and the rest of the plaintiffs named in the suit were quick to complain, Apple points out that none of them bothered to make use of Apple’s 30-day return policy and purchase a different phone. Apple also makes sure to point out that the iPhone 4S launch was its most successful iPhone launch ever.
“[The plaintiffs] offer only general descriptions of Apple’s advertisements, incomplete summaries of Apple’s website materials, and vague descriptions of their alleged—and highly individualized—disappointment with Siri,” Apple attorneys stated on Wednesday, The Wall Street Journal reported. “Tellingly, although Plaintiffs claim they became dissatisfied with Siri’s performance “soon after” purchasing their iPhones, they made no attempt to avail themselves of Apple’s 30-day return policy or one-year warranty—which remains in effect.”
The statement continued, “Instead, they seek to take an alleged personal grievance about the purported performance of a popular product and turn it into a nationwide class action under California’s consumer protection statutes. The Complaint does not come close to meeting the heavy burden necessary to sustain such claims.”
Apple’s lawyers have asked the Northern District court in Oakland, California to dismiss the class-action lawsuit.
Sprint’s costly $15.5 billion gamble on Apple’s iPhone won’t pay off until 2015, according to CEO Dan Hesse. At that time, however, the iPhone will be “quite profitable,” and the company is “very happy” with the deal despite conflicting reports, AllThingsD said. Hesse sees the iPhone as a long-term investment that will slow subscriber defections and attract new customers. “We believe in the long term,” the CEO said. “And over time we will make more money on iPhone customers than we will on other customers.” Sprint sold 1.5 million iPhones in the first quarter of 2012, and while the number doesn’t approach AT&T or Verizon’s sales, 44% of Sprint’s iPhone sales were made to new customers.
Analysts for Barclays said in a note to investors that a new 7-inch iPad will be released this fall, Business Insider reported on Wednesday. “Following up on comments made last week, recent research still leads us to believe that Apple may be planning to add another form factor to its iPad line in the 7″ range for the fall,” the note read. The banking firm states that a smaller iPad would be useful in promoting Apple’s education agenda and could also help the company’s gaming efforts. Rather than sullying the iPad brand and iOS ecosystem, Barclays states that a “lower priced iPad [is] a necessary entry point to make the tablet market the size of the PC market by 2015 in terms of units (over 350 million units) – a figure CEO Tim Cook repeatedly mentions.” Apple has long been rumored to be readying a 7.85-inch iPad mini to compete with Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet. The slate is expected to be priced between $249 and $299, and could launch as soon as the third quarter of 2012.
The launch of Sprint’s flagship EVO 4G LTE has been delayed indefinitely and supply of AT&T’s flagship HTC One X will be constrained as a result of ongoing patent disputes between HTC and Apple. HTC confirmed in a statement emailed to BGR on Tuesday evening that shipments of its new EVO 4G LTE and One X smartphones have been held up by United States Customs as part of an International Trade Commission investigation. Before the phones can clear Customs, the ITC will need to determine that HTC’s new handsets are in compliance with an earlier ruling.
“The US availability of the HTC One X and HTC EVO 4G LTE has been delayed due to a standard U.S. Customs review of shipments that is required after an ITC exclusion order,” an HTC spokesperson said. “We believe we are in compliance with the ruling and HTC is working closely with Customs to secure approval. The HTC One X and HTC EVO 4G LTE have been received enthusiastically by customers and we appreciate their patience as we work to get these products into their hands as soon as possible.”
Sprint was scheduled to launch the EVO 4G LTE, a customized version of the One X, on May 18th for $199.99 on contract. AT&T made the One X available earlier this month, however the device is now listed as out of stock on AT&T’s website and supply will be constrained until shipments clear Customs. The import delays mark the first time one of Apple’s numerous patent complaints against rivals in the U.S. has paid off.
Shares of HTC stock tumbled more than 6% on news of the import delays.
Apple’s sixth-generation iPhone handset will reportedly feature a larger display that measures “at least 4 inches diagonally.” Mirroring numerous earlier reports, The Wall Street Journal on Wednesday cited multiple anonymous sources in claiming that Apple’s next iPhone will include a new larger display. The Journal adds that panel orders have been placed, however, and that Apple has tasked LG Display, Sharp and Japan Display with supplying the new screens. A recent report claimed the next-generation iPhone would utilize the same 3.5-inch screen found on Apple’s iPhone 4S and iPhone 4, however multiple earlier reports suggested that the new iPhone will finally receive a larger 4-inch Retina display and 4G LTE compatibility. BGR exclusively reported in December that Apple will launch a completely redesigned iPhone this fall that will include a redesigned antenna system, likely alongside a new aluminum case and 4-inch display.
UPDATE: Reuters independently confirmed The Journal’s claims with its own sources in a report Wednesday morning.
Sterne Agee analyst Shaw Wu said in a note to investors on Tuesday that Apple has reduced iPhone orders by between 20% to 25% from the 35.1 million units the company shipped in the March quarter. Wu now expects shipments of between 26 million and 28 million iPhones, lower than the Street’s consensus of between 30 million and 31 million units. The analyst also noted that Apple has an estimated 8.6 million iPhones in channel inventory, 2.6 million of which were added in the most recent quarter, allowing the Cupertino-based company to achieve supply-demand balance of between four to six weeks.
“From our understanding, the reason for the reduction is not demand related but rather due to the upcoming 6th generation iPhone refresh likely in the September-October timeframe,” Wu explained. “It appears that AAPL is opting to be conservative with its suppliers to factor in a potential 2-quarter pause ahead of the refresh and also to manage inventory. We believe this helps explain why its June quarter guidance was somewhat more conservative.”
The analyst went on to state that the opposite is occurring with Apple’s iPad tablet, which is seeing increased build plans. Shipments of the device were previously held back due to supply constraints on its new Retina Display, although it has been “greatly improved with an additional supplier.” Wu believes that this will help Apple to better meet the strong demand for its iPad.
For the June quarter, Wu reduced his iPhone forecast from 28 million units to 27 million, and raised iPad shipment expectations from 14 million to 15 million units. Due to improved iPad profitability, the analyst is increasing his gross margin assumption from 42.5% to 43.5% and forecasting $36.1 billion in revenue and $10.16 in EPS. Wu reiterated his Buy rating on shares of Apple stock, as well as his $780 price target.
Despite a slew of rumors and speculation that Apple plans to enter the TV business, analysts are beginning to back away from the idea of an “iTV,” Fortune reported. Richard Gardner, formerly of Citigroup, warned in December that “Apple has not even defined specs yet.” Barclays’ Ben Reitzes in February suggested that Apple was focused more on lining up content partnerships than on the production of a full-fledged television set. And now, Analyst Andy Hargreaves of Pacific Crest called the idea “a terrible use of retail space.”
“Investment in Apple television makes little sense without a unique TV content offering. An Apple television could drive substantial profitability if it helped Apple capture service provider profits,” Hargreaves wrote in a note to investors. ”However, we do not expect U.S. broadcast or cable networks to provide Apple content if it risks cannibalizing existing revenue, which makes a unique Apple service and an Apple television unlikely.”
The analyst continued by saying, “An Apple television would be a terrible use of retail space relative to iPhone, iPad or the Apple TV set-top box. A 46″ Apple television would likely generate less than 1/200th the gross profit per cubic foot as an iPhone at retail, and less than 1/50th the gross profit per cubic foot of an iPad. We believe this is critical given the limited inventory space at many Apple and partner stores.”
Apple’s much rumored “iPad mini” will reportedly utilize new touch panel technology that allows the device to be thinner than previous models while also managing to cut Apple’s costs, likely a necessity if the company aims to hit the rumored $200-$250 price point. Citing anonymous industry sources, Digitimes on Tuesday reported that the Cupertino, California-based technology giant has contracted Nitto Denko to supply touch panels that utilize “G/F2″ thin-film technology. Nissha Printing and TPK Holding will reportedly build the touchscreens, which measure 7.85 inches diagonally. Digitimes adds that Apple is expected by its sources to ship between 7 million and 10 million iPad mini tablets in 2012. Earlier reports suggest that Apple’s new smaller iPad tablet will launch in October.
Apple’s next-generation iMac will reportedly feature a new high-resolution Retina display according to a recent report. Earlier this week, reports emerged claiming that Apple is readying a next-generation MacBook Pro with a redesigned ultra-thin case and a 15-inch Retina display. Production of the new MacBook Pro laptops has already begun according to earlier rumors. At the same time, Apple may take the wraps off an updated iMac model that also includes a high-resolution Retina display. ABC News reports that multiple sources have tipped the site off to the imminent launch of a Retina display-equipped iMac alongside a new MacBook Pro with a similar display, though no launch timing was discussed. Many expect Apple to unveil its next-generation iMac and MacBook Pro computers during its keynote at the annual Worldwide Developer Conference on June 11th.
Security firm Kaspersky Lab has begun to independently examine Apple’s Mac OS X platform and found that it’s highly vulnerable to malware. ”As Mac OS X market share continues to increase, we expect cyber-criminals to continue to develop new types of malware and attack methods, ” the company’s CTO Nikolai Grebennikov said. “In order to meet these new threats, Kaspersky Lab has been conducting an in-depth analysis of Mac OS X vulnerabilities and new forms of malware.” Kaspersky Lab co-founder and chief executive Eugene Kaspersky previously said that Apple is a decade behind Microsoft in terms of computer security, a view Grebennikov shares.
“Our first investigations show Apple doesn’t pay enough attention to security. For example, Oracle closed a vulnerability in Java, which was a target for a major botnet several months ago,” Grebennikov said. “Apple blocked Oracle from updating Java on Mac OS, and they perform all the updates themselves. They only released the patch a few weeks ago – two or three months after the Oracle patch. That’s far too long.” Grebennikov said the existence of the botnet shows that “Apple’s security model isn’t perfect.”
While the executive claimed that he has yet to identify any iOS-specific malware, he expects to see iPads and iPhones being infected by malware in 2013. “Our experience tells us that in the near future, perhaps in a year or so, we will see the first malware targeting iOS,” he said.
Grebennikov maintains that the security analysis Kaspersky Lab has been conducting is independent of Apple, however the Cupertino-based company “is open to collaborating with us regarding new Mac OS X vulnerabilities and malware that we identify during our analysis.”
Unreleased versions of Apple’s MacBook Pro and iMac computers have appeared in a Geekbench database maintained by benchmark testing software provider Primate Labs. Designated as “MacBookPro9,1″ and “iMac13,2,” a number of preliminary specifications for each model have been revealed in the publicly available test results, which were first uncovered by forum members posting to MacRumors. Apple’s upcoming laptop and all-in-one desktop computers have long been expected to feature new Core i5 and Core i7 Ivy Bridge processors from Intel, and the Geekbench results indeed show a quad-core 2.7 GHz Intel Ivy Bridge Core i7-3820QM processor in the unannounced MacBook Pro, and a 3.4GHz Intel Ivy Bridge Core i7-3770 quad-core processor in the iMac. The new models may be unveiled during the keynote at Apple’s annual Worldwide Developer Conference, which will take place on June 11th, and it is unclear if the laptop model referenced in the benchmark results is the new ultra-thin 15-inch MacBook Pro model expected to be released this summer.
Apple is reportedly preparing an upgrade to its iCloud service that includes new photo-sharing features, according The Wall Street Journal. The publication cites multiple anonymous sources who claim the Cupertino-based company will announce the new features at its Worldwide Developer Conference beginning on June 11th. Users can currently store and sync photos using iCloud, however the upgrades will allow users to share and comment on each other’s photos as well. The iPhone-maker is also said to be working on a new feature that will allow iCloud users to sync their personal videos to the cloud, and the update will reportedly also let users access “Notes” and “Reminders” through the iCloud web portal. Apple has not refreshed iCloud since it launched last October, and the service is currently home to more than 125 million users.
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