Jury Finds Both Apple and Samsung Guilty of Patent Infringement, Samsung to Pay $119.6 Million, Apple to Pay $158,400

After three days of deliberations and several weeks of testimony, the jury reached a unanimous verdict in the second Apple vs. Samsung trial (via CNET). The jury found that Samsung willfully infringed on three of the five patents involved in the lawsuit, ordering the South Korean company to pay $119.6 million, far from the $2 billion total Apple was hoping for.

All of Samsung's devices were found to have infringed on the '647 data syncing patent, while some were found to have infringed on '721, slide-to-unlock. Samsung was not found to have infringed on '959, universal search, or on '414, background syncing. Judge Koh had also previously ruled that Samsung had infringed on Apple's '172 autocomplete patent.

As for Samsung's claims against Apple, Apple was found guilty of violating the company's '449 patent related to an "Apparatus for recording and reproducing digital image and speech", and was ordered to pay Samsung $158,400.

In this second lawsuit, which began on March 31, Apple argued that Samsung owed it $2.2 billion in damages for infringing on five separate iPhone patents. Samsung argued that Apple had infringed on two of its own patents, asking for $6.2 million in damages.

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Over the course of the trial, Apple called in numerous experts to argue why it was owed $2 billion, chalking the total up to lost profits and reasonable royalty estimates. Samsung argued that Apple's $2 billion request was ludicrous, insisting it should owe only $40 million, or $1.75 per device.

While Samsung focused on proving that Apple was actually targeting Android in its suit, calling multiple Google witnesses like former Android chief Andy Rubin, Apple presented the jury with testimony from its own employees on the design, development, and marketing of the original iPhone.

During the trial, news broke that Google agreed to cover lawyer fees and potential damage awards related to some of the patents in the lawsuit. Four of the five patents Apple has accused Samsung of infringing on are part of the Android operating system, but the two Google had agreed to help with were not the same patents Samsung was found guilty of infringing.

This damages award adds to the recalculated damages from the original Apple vs. Samsung trial, in which Samsung was ordered to pay Apple a total of approximately $890 million. This suit focused on newer devices, including the Galaxy S III, Galaxy Note II, Galaxy Tab 10.1, the iPhone 4/4s/5, the iPad 2/3/4, the iPad mini, and fourth and fifth generation iPod touch.

Update 5:50 PM PT: Apple issued the following statement to Re/code following the verdict:
"We are grateful to the jury and the court for their service," Apple told Re/code. "Today's ruling reinforces what courts around the world have already found: that Samsung willfully stole our ideas and copied our products. We are fighting to defend the hard work that goes into beloved products like the iPhone, which our employees devote their lives to designing and delivering for our customers."
Update 6:05 PM PT: Apple's lawyers claim to have identified an error, suggesting one product (the Galaxy S2) found to infringe on the '172 patent received no damages award. The jury will need to return on Monday to finalize the damages award.

Update 5/4 11:40 AM PT: After calculating damages for the missing Galaxy S2, the jury has awarded Apple an additional $4 million and adjusted the damages for some other products, keeping the overall amount that Samsung owes at the original $119.6 million.

Apple Considering 'Full Health and Fitness Services Platform' Modeled on the App Store

Apple allegedly is looking beyond the iWatch wearable device and may be creating a new health and fitness ecosystem modeled on its successful iOS App Store, claims a mobile health executive who recently spoke to Reuters. Similar to the iOS App Store, this new platform may allow companies to develop their own mobile medical applications that could tie into Apple's iWatch wearable device.
One mobile health executive, who asked not to be named, told Reuters he recently sat down with an Apple executive from the iWatch team. He said the company has aspirations beyond wearable devices, and is considering a full health and fitness services platform modeled on its apps store.
As part of iOS 8 later this year, Apple is rumored to be launching a new Healthbook app, which is expected to serve as a repository for health-related data acquired from a variety of sources. Based on the breadth of data the app appears to be able to track, it is unsurprising that Apple will be looking to open up the ecosystem to third parties to help users fill out all of the various content areas.

One company that could benefit from an Apple health and fitness ecosystem is Nike, which has scaled back its work on its Fuelband hardware to focus on expanding its software-based NikeFuel platform. Though Nike CEO Mark Parker would not directly comment on specific plans with Apple, Parker did note in a recent CNBC appearance that Apple is a longtime partner and that he is "excited about where that relationship will go forward."

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iWatch concept by Todd Hamilton, based on the Nike FuelBand

Much of today's report focuses on Apple's health- and sensor-related hires over the past several years, most of which have previously been detailed and which have been focused around non-invasive monitoring of vital health parameters such as sleep, oxygen saturation and blood glucose levels. Apple has hired talent from notable companies such as pulse oximetry company Masimo, medical sensor company Vital Connect and Philips Sleep Research.

Apple's latest reported hire is MIT researcher Eric Winokur, who worked on ear-worn devices for monitoring blood pressure and heart rate. Information about Winokur's hiring surfaced alongside a sketchy rumor claiming Apple is planning to launch an EarPods model with integrated heart rate and blood pressure sensors. While a new Tumblr blog post reveals that the claim was indeed fabricated, Apple patent applications suggest the company has indeed considered the integration of biometric sensors into its headphone line in the past.

Apple's sensor-laden iWatch has been rumored for several years, with most recent rumors suggesting that it may debut late this year. It is not expected to be unveiled at the company's Worldwide Developers Conference set for early June.

iOS 7 Security Flaw Leaves Stored Email Attachments Unencrypted [Updated]

Apple states that it uses data encryption to protect email message attachments, but a report from security researcher Andreas Kurtz, via ZDNet, claims iOS 7.0.4 and later does not include this security feature.

security-flaw-email-attachmentsKurtz detected this flaw in iOS by accessing the file system on an iPhone 4 running iOS 7.1 and 7.1.1. Browsing through the email folder for an IMAP account, Kurtz discovered that the email attachments were stored in an unencrypted state. Besides the iPhone 4, Kurtz also was able to reproduce this vulnerability on an iPhone 5s and an iPad 2 running iOS 7.0.4.
I verified this issue by restoring an iPhone 4 (GSM) device to the most recent iOS versions (7.1 and 7.1.1) and setting up an IMAP email account1, which provided me with some test emails and attachments. Afterwards, I shut down the device and accessed the file system using well-known techniques (DFU mode, custom ramdisk, SSH over usbmux). Finally, I mounted the iOS data partition and navigated to the actual email folder. Within this folder, I found all attachments accessible without any encryption/restriction
Kurtz reported this issue to Apple, which acknowledged the flaw, but provided no timetable for patching it. This isn't the first security issue Apple has faced this year. The company recently patched a serious SSL connection verification flaw in both iOS and OS X that allowed an attacker with a "privileged network position" to capture data protected by SSL/TLS.

Update 3:11 PM PT: In a statement given to iMore, an Apple spokesperson said the company is working on a fix for the issue.
"We're aware of the issue," an Apple spokeswoman told iMore, "and are working on a fix which we will deliver in a future software update."

Apple's Stock Price Breaches $600 for First Time in 18 Months

Apple's share price has closed above the $600 mark for the first time since October 2012, some 18 months ago. It illustrate a significant recovery for Apple's stock, which hit a low of $388/share in late June 2013.

The price is mostly psychological, made even more so by the fact that Apple will split its stock by a 7/1 ratio next month, dropping the price down to roughly $85 per share at current prices. The stock split is meant to allow more investors the opportunity to invest in the company.

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Apple's market capitalization is roughly $518 billion, well ahead of Exxon Mobil's $444 billion. Apple is the most valuable publicly traded company in the world. The company's all time high share price is $702.10, originally hit in September 2012.

Samsung's 'Infringe First and Stall as Long as Possible' Strategies Are Nothing New

On the day that a San Jose jury submitted a final verdict on the damages that Samsung owes Apple in the second United States patent infringement lawsuit between the two companies, Vanity Fair has published a lengthy piece that takes a look at Samsung's long (and successful) history of using patent infringement as a business tactic.

Back in 2010, before Apple filed an initial lawsuit against Samsung, executives from Cupertino (including lawyers) met with Samsung executives in Seoul, where it was made clear by Samsung VP Seungho Ahn if Apple chose to pursue a lawsuit, Samsung would countersue with its own patents. "We've been building cell phones forever," Ahn told Chip Lutton, an Apple lawyer at the time. "We have our own patents, and Apple is probably violating some of those."

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The iPhone compared to the Samsung Galaxy S

As it turns out, stealing key ideas from other companies and then using its own portfolio of patents to draw out lawsuits is a tactic that Samsung used long before Apple came into the picture.
According to various court records and people who have worked with Samsung, ignoring competitors' patents is not uncommon for the Korean company. And once it's caught it launches into the same sort of tactics used in the Apple case: countersue, delay, lose, delay, appeal, and then, when defeat is approaching, settle.
In 2007, Sharp filed a lawsuit against Samsung, alleging that the South Korean company had violated its patents. Samsung countersued, drawing out the lawsuit as it continued to produce TV sets using the stolen technology, building up its TV business. Samsung was found guilty of patent infringement years later in 2009, at which point it settled with Sharp to avoid an import ban.

There's a similar story with Pioneer, who filed a patent infringement lawsuit against Samsung over plasma television technology in 2006. Samsung countersued, dragging on litigation and appeals until a 2009 settlement. The long and expensive legal battle caused Pioneer to shut down its television business while Samsung thrived. Samsung has pulled the same stunt with Kodak, Apple, and several other technology companies.

Samsung hit Apple with the same tactic following the release of the iPhone. As has been documented during the ongoing global lawsuits between the two companies, Samsung evaluated the iPhone feature-by-feature and came up with 126 instances where Apple's iPhone was better than its own offerings, which led to the development of the Galaxy S.
Bit by bit, the new model for a Samsung smartphone began to look--and function--just like the iPhone. Icons on the home screen had similarly rounded corners, size, and false depth created by a reflective shine across the image. The icon for the phone function went from being a drawing of a keypad to a virtually identical reproduction of the iPhone's image of a handset. The bezel with the rounded corners, the glass spreading out across the entire face of the phone, the home button at the bottom--all of it almost the same.
Following the release of the Galaxy S and Samsung's refusal to sign licensing agreements with Apple due to its former history of successfully avoiding significant penalties for copying intellectual property, Apple filed its first lawsuit against Samsung. Samsung, of course, followed, leading to where we are today -- Samsung has thus far been ordered to pay Apple just over a billion dollars in the United States after two lawsuits, but appeals are far from over. Samsung has continued to develop its Galaxy line of devices and has cemented itself as Apple's biggest competitor.
Meanwhile, as has happened with other cases where Samsung violated a company's patents, it has continued to develop new and better phones throughout the litigation to the point where even some people who have worked with Apple say the Korean company is now a strong competitor on the technology and not just a copycat anymore.
The full story, which covers Samsung's history, its past patent lawsuits and other legal woes, Apple's creation of the original iPhone, and the dispute between the two companies, can be read over at Vanity Fair.

Apple to Host iPhone Upgrade Event at Retail Stores

Apple is planning to hold an iPhone upgrade event at its stores this week in an effort to boost sales, a source told 9to5Mac. Starting this week, Apple will be emailing owners of older iPhone models who are upgrade eligible about the new event, and will apparently separate from Apple's current iPhone trade-in program.
This event will be held in multiple states across the United States, and Apple is said to be preparing for an influx of visitors to its stores on the levels of traffic driven to stores for new product debuts. Apple will brief Apple Retail management on the initiative tomorrow, according to the source.
Apple will be launching other new marketing and sales initiatives to help increase iPhone sales as well. There's no word on what types of marketing and initiatives Apple could use, but they will be tied to Apple's retail stores.

New Apple retail chief Angela Ahrendts, who officially joined the company on May 1 and began her first full week today, will oversee the program.

Apple once again noted that iPhone sales hit another record for Q2 2014, making up 57 percent of Apple's sales for the quarter for all products. CEO Tim Cook also noted in the conference call that Apple has started selling iPhone 4's in the "very, very low single digit percentage" and last year said he wanted to sell more iPhones in stores.

Apple Expanding 'Buzz Marketing' Team Focused on Product Placement

Apple yesterday posted a job listing for a "Buzz Marketing Manager" based out of New York (via Dwight Silverman and Business Insider), with the description outlining a position responsible for managing such areas as product placement in film and television and fostering relationships with "high-profile influencers" to promote the Apple brand.
- Product placement in film & television. Work with the creative side of film & TV to place Apple products. This includes getting necessary approvals, managing and trafficking product inventory, following up with studios, and monitoring media for successful placements.

- Build and maintain relationships with high-profile influencers. Influential Apple users could be directors, actors, artists, athletes, designers and select brands or institutions. Determine which relationships have potential to maximize benefit to Apple.

- Leverage relationships to book events at Apple Store Soho. Collaborate with Apple Retail, PR and iTunes to ensure maximum positive outcome for the effort. Produce a podcast for each event into iTunes and maximize the promotional value of the content through PR efforts and partner channels.
Apple describes the role as new and reporting to the head of worldwide Buzz Marketing, suggesting that Apple is expanding its efforts in the area.

Buzz marketing has been receiving significant attention recently, in large part due to Samsung's aggressive efforts in the area led by the "Oscar selfie" posted by Ellen Degeneres. The stunt, which became the most retweeted Tweet in history, was quickly revealed to have been coordinated by Samsung, which was a promotional sponsor

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Modern Family's "Game Changer" episode with iPad promotional tie-in

Apple's Buzz Marketing program has been in place for two decades, however, having been developed and led by longtime Apple employee Suzanne Lindbergh until her departure for Jawbone last October. On her LinkedIn profile, Lindbergh highlights her role in helping produce over 1,500 events for Apple's in-store Meet the Filmmaker/Actor series, as well as her work on Apple's original "Hello" teaser ad for the iPhone and a promotional tie-in for an episode of Modern Family days before the launch of the original iPad.

No Revamped Apple TV or iWatch Expected at WWDC

Apple does not have plans to use the company's upcoming Worldwide Developers Conference to debut new Apple TV hardware, its related software, or the iWatch, reports John Paczkowski of Re/code.

Citing sources familiar with Apple's plans, Paczkowski confirms that Apple's big announcements will focus on OS X 10.10, iOS 8, and possibly Healthbook, an app Apple is said to be developing to aggregate fitness and health information.

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An Apple TV concept via Curved
Sources familiar with Apple's plans tell Code/red that Tim Cook will not use WWDC to unveil Apple's mythical wearable device. Nor will he use it to show off a new Apple TV, or even preview the new software the company is developing for it. Which makes perfect sense, really. There's little point in Apple unveiling a new OS in advance of a significant hardware update.
Apple's Worldwide Developers Conference, which starts on June 2, has historically been used as a platform for unveiling new operating system software. Apple has, however, occasionally debuted new hardware at the event, including new MacBook Airs in 2013 and the Retina Macbook Pro in 2012.

Though the company does not have plans to unveil an updated Apple TV set-top box at WWDC, the product is said to be in the works. The revamped box is rumored to include an App Store, gaming support, iOS 7 controller integration, and possibly new content deals.

Apple may have had plans to debut the box earlier in 2014, but according to a recent product roadmap from often reliable analyst Ming-Chi Kuo, we may not see an updated Apple TV until the third quarter of 2014.

As for the iWatch, which also remains in development, a late 2014 release date is expected.

2014 MacBook Airs Demonstrating Slower Flash Storage Speeds Than 2013 Models

The newly released 2014 MacBook Airs are seeing improved processor performance thanks to updated Haswell chips, but storage performance appears to have declined.

In a series of performance benchmark tests performed by Macworld, tests of the flash storage suggested the new MacBook Airs are performing slower than the 2013 MacBook Airs. The comparison, which included a 2013 11-inch MacBook Air with a 256GB SSD and a 2013 13-inch MacBook Air with a 128GB SSD vs. a 2014 11-inch model with a 128GB SSD and a 13-inch model with a 256GB SSD, found that the 2014 models were twice as slow as the 2013 models at some tasks.
Copying 6GB of files and folders took 28 seconds on last year's 11-inch MacBook Air, but took nearly twice as long (54 seconds) on this year's 11-inch model. With solid-state storage, lower capacity drives are often slower performers, and last year's 11-inch had the higher capacity 256GB of flash. However, the new 11-inch model was also slower than last year's 13-inch model with 128GB of flash storage.
Compressing 6GB of files also took longer on the 2014 MacBook Air, and Macworld described unzipping as "just plain slow" with the new 11-inch version taking three times as long to unzip files as the 2013 model.

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Using fewer but larger files, the performance difference narrowed between the two models, but the 2014 11-inch MacBook Air still performed 35 percent slower copying files than the mid–2013 13-inch MacBook Air with the same storage capacity and 53 percent slower when uncompressing files.

The Blackmagic Disk Speed Test also showed the new models running slower than the older models, with write/read speeds as follows (in MBps):

- 2013 13-inch with 128GB SSD: 445/725
- 2013 11-inch with 256GB SSD: 687/725
- 2014 13-inch with 256GB SSD: 520/676
- 2014 11-inch with 128GB SSD: 306/620

All four of the drives in the MacBook Airs tested came from different manufacturers, with two from Samsung, one from Toshiba, and one from SanDisk, which accounts for the performance discrepancies. Speed differences between SSDs used within Apple's MacBook Air computers have been highlighted before in previous models and as suggested in the past, while the speed variations may be noticeable in some high-intensity tasks, they are unlikely to be noticed during day-to-day usage.

Released earlier this week, the new MacBook Airs are available from Apple's website beginning at $899.

Apple Acquires Low-Power Display Company LuxVue Technology

Apple has purchased LuxVue Technology, a company that develops low-power microLED-based displays, reports TechCrunch, citing sources with knowledge of the acquisition. Micro-LEDs have the potential to improve battery life while offering brighter screens than competing technologies.

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Little is known about LuxVue, which appears to operate largely under the radar. The company appears to create LED displays that use little energy for use in various consumer electronic products. Back in December of 2013, LuxVue raised $25.2 million in funding for to pursue its micro-LED technology. The company has also filed several patents on micro-LEDs, and one of LuxVue's investors said the company had "a technical breakthrough in displays."

LuxVue's VP of technology, Kapil Sakariya, has ties to Apple, having previously worked as a Display Architect and iPhone Operations and Procurement Manager at Apple. Sakariya was employed at Apple from July of 2006 until November of 2011, when he joined LuxVue.

According to TechCrunch, Apple has made the acquisition to add to its hardware innovations area, which the company has been aiming to bolster in recent years to bring more of its production in-house. Last year, Apple acquired low-power wireless chip provider Passif Semiconductor and is said to be in talks to acquire Renesas SP Drivers, a division of Renesas Electronics that develops chips for smartphone displays.

Update: Apple has seemingly confirmed the purchase to TechCrunch, issuing its usual statement for such circumstances: "Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans."

Physical iPhone 6 Mockup Compared to Galaxy S5 in New Images

Earlier this week Italian site Macitynet shared images of a high-quality physical mockup of the iPhone 6, based on earlier design drawings and renderings. The site has now shared [Google Translation] a new series photos comparing that mockup to a Samsung Galaxy S5 display model, showing how Apple's larger iPhone might stack up to Samsung's flagship offering.

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Samsung's Galaxy S5, released in April, has a display size of 5.1 inches, along with a thickness of 8.1mm. That makes it both larger and thicker than the iPhone 6 mockup, which appears to have a display size of 4.7-inches. While the thickness of the mockup cannot be determined, rumors have suggested the iPhone 6 will be thinner than the existing 7.6mm iPhone 5s, possibly between 6.5 and 7mm.

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The mockup in the photos was reportedly created by a case manufacturer and is said to be a "final" version used to make sure cases and accessories will fit Apple's iPhone 6, which means that it could be a solid representation of what we can expect from Apple's larger phone.

Several design elements that have been seen in other case models and mockups are present in this high-quality mockup, including rounded edges, rectangular volume buttons, a rounded rear flash, a protruding camera, and a power button located on the right hand side of the device for easier one-handed use. ConceptsiPhone (via BGR) has compiled many of Macitynet's photos into a video, showing the mockup next to an iPhone 5s and an iPhone 4s.



Apple's 4.7-inch iPhone is expected to launch in the fall months, possibly as early as September. Along with a thinner frame and a larger display, it is also expected to include an A8 processor and camera improvements. A second 5.5-inch iPhone is also rumored to be arriving several months later due to production delays.

Virgin Atlantic to Integrate iBeacon Technology Into London's Heathrow Airport

Virgin Atlantic is reportedly gearing up to integrate Apple's iBeacon technology into London's Heathrow Airport, according to Re/code. The airliner will be using beacons sourced from startup Estimote, as the transmitters will be deployed near businesses and terminals to notify users of promotional deals and areas of interest.

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An Estimote Beacon
In one use case, passengers would receive an offer on their phone for no-fee currency exchange as they near that place of business. The program, which will utilize Apple’s iBeacon technology and the Passbook iOS app, follows a trial in which airline employees donned Google Glass as they greeted first-class passengers upon entering the airport.
First introduced during Apple's 2013 Worldwide Developers Conference, iBeacons enable iOS devices to wirelessly communicate with physical beacons through Bluetooth, as the transmitters are able to deliver specific information to apps when a user is nearby.

iBeacon technology has also been utilized in a number of unique ways since the end of 2013. Shopping app Shopkick and Macy's teamed up to integrate the technology into stores to aide consumers, while Major League Baseball and the National Basketball Association have used iBeacons to provide enhanced in-stadium experiences. Apple has even implemented iBeacons into its own retail stores to provide customers with product information and deals, while a London-based cafe and the Consumer Electronics Show have also featured the technology.

iPhone 6 Physical Mockup Allegedly Based on Real Machine Schematics Surfaces

A new physical mockup claiming to be based on real iPhone 6 machine schematics from supply chain sources has surfaced on Chinese technology blog 86Digi (via Nowhereelse.fr, Google Translate).



The physical mockup shows the 4.7-inch iPhone 6 as a 6 mm thin device featuring rounded corners and various physical changes. In line with other reports, the model shows the power button now located on the top right hand side of the device, rectangular volume controls on the left, and the camera and circular LED flash on the rear.

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Notably, the mockup also shows two antenna breaks cut out on the device's rear, with the post noting that Apple will incorporate a three-stage aluminum design on the back of the iPhone 6. This is partially in line with a report from Mac Otakara last week that claimed Apple would be doing away with the glass breaks currently found on the iPhone 5s in favor of an aluminum design, although it is unsure how Apple will incorporate changes to its overall antenna layout to accommodate the new look.

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The photos and video of this new mockup follow images of other physical mockups in recent days, including another model from a case manufacturer showing the 4.7-inch iPhone 6 and one showing the larger 5.5-inch iPhone 6 based on design drawings shared by Japanese magazine MacFan last month.

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The iPhone 6 is expected to be unveiled this fall in two different sizes of 4.7-inches and 5.5-inches. The 4.7-inch version of the device will likely ship first in the third quarter of 2014, while the 5.5-inch version is estimated to ship later this year or early next year as Apple solves issues with the phone's display and battery.

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In addition to a larger display, both versions of the iPhone 6 are expected to include a thinner profile, a faster A8 processor, Touch ID fingerprint sensor, and an improved camera that may feature optical image stabilization or electronic image stabilization. Jefferies analyst Peter Misek also claimed in a research note earlier this month that Apple is negotiating for a $100 price increase on the iPhone 6.

Apple's WWDC 2014 to Focus on OS X 10.10 as Apple Pulls Resources from iOS 8 to Help

According to 9to5Mac, Apple may use WWDC 2014 to focus on OS X 10.10, giving the desktop OS more attention than iOS 8 during the annual developer conference. Apple allegedly has been moving iOS user interface developers to the OS X teams in order to finish up the new design in time for early June conference.

As has been previously reported, Apple is not merging the two operating systems, opting to keep iOS and OS X as separate entities, but the next version of OS X may share similar design elements with iOS 7.
The new look will have similar toggle designs to iOS 7, sharper window corners, more defined icons across the system, and more white space than the current version. However, OS X characteristics like the Finder, multi-window multitasking, and Mission Control will not disappear in favor of a more iOS-like experience.
Apple is targeting the desktop OS for release in the fall along with new hardware that will ship with this latest OS X version. Though the internal development codename of OS X 10.10 is "Syrah," the shipping name is still unclear, with Apple apparently securing trademarks for popular California locations that would match the new theme started with "Mavericks."

On the iOS 8 side of development, Apple is allegedly pushing some features of iOS 8 off to version 8.1 as the company focuses intently on its next version of OS X. Though Apple may present most of the new features of iOS 8 at WWDC next month, some notable additions such as transit functionality in Maps may not be available until later versions of iOS 8.

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iCloud will reportedly see some significant changes in the coming year with improvements on the developer side that make it easier to implement support for the service. Siri may also see Shazam integration, allowing users to identify a song using the voice assistant. Lastly, iOS 8 is reportedly being optimized for Apple's upcoming A8 processor and the rumored larger display of the iPhone 6.
The new iPhone’s larger display, as well as a “high-priority” iOS device that is not an iPhone, also lends itself to another core iOS 8 addition. The feature, dubbed by Apple employees as “multi-resolution support,” is designed to improve the performance of both App Store applications and the general iOS operating system across multiple new iOS device resolutions.
Apple TV is also now a priority for Apple, with the company rumored to be bringing in hardware and software engineering resources from within the company to work on the next generation device. Apple may be concurrently developing new hardware as well as a revamped iOS-based software system to power the device. Apple had hoped to introduce the hardware in early 2014, but the product's debut has been pushed off. It is, however, unclear whether a new Apple TV will make its way into the WWDC keynote.

MacRumors 2014 Blood Drive

MacRumors is pleased to announce the Fifth Annual MacRumors Blood Drive, throughout the month of May 2014. Our goal is to increase the number of life-saving donations in real-world communities by encouraging everyone in our online community to step forward. While most blood drives are specific to a geographic location or collection center, our blood drive is online and worldwide. Our past blood drives have collectively recorded donations of hundreds of units of blood and platelets.

We ask that you:

1. Donate blood or platelets at any donation center or hospital near you. Join the bone marrow registry in your country. Sign up for the organ donor registry in your state, province, or country.

2. Post in the MacRumors 2014 Blood Drive! thread. Tell us about your donation or registration experience, or post a post-donation selfie. We'd like to thank you.

3. Share the news and our message with other people you know, online and in person. Convince one other person to donate blood in the month of May. Help us thank the donors who post about their experiences.

For details see the MacRumors 2014 Blood Drive! thread and our traditional Honor Roll of recognized donors.

Why donate blood or platelets?

Donated blood and platelets save the lives of people recovering from accidents, undergoing surgery, or struck by illness. These are people in your own neighborhoods who need your help. Donated blood and platelets are needed every 2 seconds, not just when hurricanes, earthquakes, and other disasters occur. An hour of your time could save up to 3 lives.

Why join the bone marrow registry?

With a simple cheek swab you are volunteering to donate stem cells or bone marrow if you match someone dying from a disease like leukemia. There are many thousands of people each year searching for donors to save their lives. You might be the one and only person who can save a particular patient's life.

Why join the organ donor registry?

Thousands of people die every year while waiting for organ transplants. Your donation of organs when your own life ends could save the lives of as many as 8 people.

The lives you save may belong to your friends, neighbors, relatives, or complete strangers. Someday you may receive the same generosity from others. There's no gift more precious than the gift of life.

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This year's first blood donor: forum member "stridemat"

What to do today

See the links and general information in our two knowledge base articles: Blood and Platelet Donation and Organ, Tissue, and Bone Marrow Donation. Donor eligibility rules vary by country.

1. If you are eligible to donate blood: Schedule a blood or platelet donation, in May if possible. Register for the bone marrow registry. Register as an organ donor.

2. If you aren't eligible to donate blood: Some people aren't eligible to donate blood for medical reasons, while others are barred by government policies that many find outdated. Speak your mind about it in the Blood donor eligibility thread. You can probably still register for the bone marrow registry and register as an organ donor.

3. Help our drive by thanking donors and convincing a friend or relative to donate blood.

Apple charity

Apple's support for charity has picked up in recent years. Apple has supported a number of health, relief, and charity efforts over the years, especially through Product (RED). See our updated knowledge base article: Apple Support for Charity.

Wild Rumor of Apple EarPods with Biometric Sensors Has Roots in Apple's Research

A seemingly wild rumor of Apple planning to launch new EarPods headphones with integrated heart rate and blood pressure sensors has been making the rounds today after the claim was posted on anonymous information sharing platform Secret (via Reddit).
Apple's new EarPods will have sensors in them, for heart rate & blood pressure. Also iBeacons so they don't get lost. They will require the lightning port, it's why the audio jack was moved to the bottom. [...]

It stores the data in a similar way to thumbprint point data, fully encrypted and nothing identifiable. But nice to send to your doctor to keep track of at which point your blood pressure started rising for example. [...]

Redesigned remote too. Extra mic for better noise canceling.
While a number of major tech stories have in fact broken on Secret, the anonymous nature of the platform makes it all but impossible to separate legitimate claims from fiction without corroborating information from other sources. As a result, it's easy to dismiss this EarPods rumor from someone claiming to have recently been let go from Apple.

But what makes the rumor a bit more interesting is that it has roots in Apple's research as documented in patent applications dating back years. Whether the Secret rumor is a fake inspired by those patent filings or if there actually is something to it is unknown, but it's worth taking another look at what Apple has proposed.

In one patent application filed in March 2007 and claiming a priority date of September 2006, Apple proposes using sensors integrated into various accessories or even devices themselves to collect physiological data.
The present invention can include systems and methods for integrating sensors for tracking a user's performance metrics into electronic devices and accessories therefor. In one embodiment of the present invention, the electronic devices can include portable media devices similar to iPods sold by Apple Inc. of Cupertino, Calif. or cellular telephones similar to iPhones designed by Apple Inc.

In one embodiment, the present invention can include headsets having one or more integrated physiological sensors. The headsets can be, for example, headphones for receiving audio signals from a media device or headsets for communication with cellular telephones. The sensor signals can be transmitted to a data repository through the same communication channel through which audio signals are transmitted to the headset (e.g., hard-wired or wireless).
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Apple's concepts for sensor clipped onto earlobe (left) to monitor pulse/oxygen levels or adhered to the skin (right)

Alternatively, Apple proposes using sensors embedded in an iPod or iPhone "sling" armband to monitor such data. Notably, two of the inventors listed on the patent filing are longtime accessories head Jesse Dorogusker, who moved to Square in 2012, and "father of the iPod" Tony Fadell, who left Apple in 2008 before starting Nest.

A second filing, which was granted as a patent this February, more directly addresses headphone-based physiological monitoring, although the application is also quite old, having been filed in August 2008 with an October 2007 priority date.
The invention pertains to a monitoring system that can be placed proximate to the head or ear of a user. According to one embodiment, the monitoring system can be used with a hearing device, headphones, earbuds or headsets. The monitoring system can, for example, be used to monitor user activity, such as during exercise or sporting activities. The positioning of the monitoring system can also facilitate sensing of other user characteristics (e.g., biometric data), such as temperature, perspiration and heart rate.

Advantageously, the invention can provide monitoring capabilities within a hearing device. Assuming the user is otherwise using the hearing device, such as to provide audio output by a portable media player, the user gains monitoring capabilities without requiring the user to wear or carry an additional article.
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Apple's concepts for sensors integrated directly into earpiece (left) or in a separate housing (right)

Biometrics have been rumored to be a significant part of iOS 8, with a new "Healthbook" app for tracking various types of health-related information being a key addition to Apple's mobile operating system. With Apple also rumored to be deploying biometric sensors in an upcoming iWatch, it's clear that the company has been looking at ways of collecting health-related data for many years and the effort may finally be coming together.

Apple Hiring MIT Researcher With Expertise in Ear-Worn Vital Signs Monitor

Apple may be adding to its wearables team, as MIT researcher Eric Winokur will be joining the company in the coming weeks, according to a source who spoke to MacRumors. Winokur, who does research at MIT's Medical Electronic Devices Realization Center, has recently worked on an ear-worn "wearable vital signs monitor." According to his LinkedIn page, one of his specialties is "wearable medical device R&D."

winokur_lab
My professional experience includes many aspects of research and development in the electrical engineering field, with an emphasis on medical monitors. From conceptualizing designs to following through with circuit layout (both IC and PCB) and building full prototypes, I have enjoyed being involved in the entire process.

Specialties: Wearable medical device R&D, circuit design, PCB and IC layout, signal processing, physiological to electrical signal conversion
Winokur is listed as an author on a number of academic papers focusing on cardiovascular ear-worn devices that measure vital signs. His work was published in two 2012 papers, the first entitled "An ear-worn continuous ballistocardiogram (BCG) sensor for cardiovascular monitoring" and the second entitled "A wearable vital signs monitor at the ear for continuous heart rate and pulse transit time measurements." Ballistocardiography aims to measure the movement of blood into major vessels with each heart beat.

Both papers describe an ear-worn device that is designed to wirelessly monitor vital signs using a built-in triaxial accelerometer. The devices are described as taking on the form factor of a hearing aid and are wirelessly connected to a PC for data recording and analysis.

Word of Winokur's hiring comes just as a rumor has surfaced claiming Apple is planning to launch EarPods headphones with integrated heart rate and blood pressure sensors. While the claim is extremely sketchy, Apple patent applications have revealed the company's interest in integrating biometric sensors into headphones in the past.

Regardless, it is unclear if Winokur will continue his work on ear-worn monitoring devices at Apple or perhaps move to focus on wearables in general, such as the iWatch. Given the timing of his hiring, it is unlikely his expertise will impact any of Apple's product plans rumored for later this year, but he may certainly contribute to the company's ongoing efforts in the health and wearables area.

In a 2011 interview with ABC, Winokur described the benefit of the medical device he was developing, suggesting it was to be worn in the ear all day for continuous monitoring of blood pressure and heart rate.
"The goal is to have this worn, basically throughout the day," Eric Winokur, an MIT Ph.D. candidate told Ivanhoe.

It measures heart rate and blood pressure at your head, and could help doctors track conditions like high blood pressure more accurately and continuously to better personalize treatment.

Winokur listed some typical questions that patients will be able to get answers to using the device, "Is my medication working? Should I increase it? Should I decrease it? What's my overall health?".
In recent months, Apple has taken an intense interest in health monitoring, hiring multiple health experts with a range of skills and interests, including non-invasive monitoring of heart rate, oxygen saturation, glucose, and more. Many of the experts have joined the company's iWatch team, focusing on developing a sensor-laden wearable device that may be released later this year.

Alongside the iWatch, Apple is also developing iOS 8, which is said to have a heavy focus on health with its included "Healthbook" app, designed to aggregate health-related data from a variety of sources. While Winokur's role is currently unknown, he is set to join Apple next month.

Apple Will Begin Notifying Users of Information Requests from Law Enforcement

Apple will begin notifying its users of secret personal data requests from law enforcement, according to The Washington Post, as the company believes users have a right to know in advance if their information is being targeted by the government.
Apple, Microsoft, Facebook and Google all are updating their policies to expand routine notification of users about government data seizures, unless specifically gagged by a judge or other legal authority, officials at all four companies said. Yahoo announced similar changes in July.
Prosecutors, however, say the move could tip off criminals, allowing them to destroy potential digital evidence, cover their tracks and intimidate potential witnesses before law enforcement can build their case. Alternatively, the Post notes that some companies who already notify users before a government requests have found that investigators have dropped data requests to avoid having suspects learn of their inquiries.

In the United States, the typical search warrant requires the police to notify the suspect that they are being searched. However, so-called "sneak-and-peek" warrants are not unheard of and allow investigators to search a suspect's house or other property without any notification. This ability was expanded in the PATRIOT Act, allowing the Federal Government to utilize such warrants in nearly any crime.

Apple and the other companies are seeking to nullify these sneak-and-peek warrants as they pertain to the digital realm.

Apple's changes will be unveiled in an updated privacy policy later this month, an Apple spokeswoman told the Post, and users will be notified in "most cases" when their information is requested by a government entity. Cases in which Apple would not notify users include data requests from the Foreign Intelligence Surveillance Court and subpoenas from the FBI for national security investigations.
“Later this month, Apple will update its policies so that in most cases when law enforcement requests personal information about a customer, the customer will receive a notification from Apple,” company spokeswoman Kristin Huguet said.
The Cupertino company has been increasingly concerned about privacy matters since the discovery of secret intelligence program PRISM, with CEO Tim Cook saying the NSA would have to cart them "out in a box" before it could access Apple's servers. Apple has also hired certified privacy professional Sabrina Ross as privacy counsel to oversee the protection of customer data.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

New Retail Chief Angela Ahrendts Appears on Apple's Leadership Page

Former Burberry CEO Angela Ahrendts has officially joined Apple and is now listed on the company's executive page alongside other major Apple execs like Jonathan Ive, Tim Cook, Eddy Cue, and Craig Federighi.

cook_ahrednts_cue
Ahrendts will take on the role of Senior Vice President of Retail and Online stores, a position that has seen significant turnover in recent years. Back in 2011, Ron Johnson left the position to join J.C. Penney after 11 years with Apple and while the role was filled by John Browett in 2012, he was ousted just months later. Since that time, Apple has operated without a retail leader.
Angela is responsible for the operation and expansion of Apple retail and online stores, which have redefined the shopping experience for hundreds of millions of customers around the world. Apple retail stores set the standard for customer service with innovative features like the Genius Bar, personal setup and one-to-one personal training to help customers get the most out of their Apple products.
Back in October, when Ahrendts' hiring was first announced, Apple CEO Tim Cook noted he was "thrilled" she was joining the team, emphasizing that she shared Apple's values, "focus on innovation," and the company's dedication to customer experience.

Prior to joining Apple, Ahrendts served as CEO of Burberry beginning in 2006. She is largely credited with boosting Burberry back to fame after a decline, tripling the company's revenue and working to merge Burberry's online experience with the brick and mortar experience.

With her luxury brand experience and her dedication to improving customer experience, it's possible that Ahrendts could bring some significant improvements to both the online and retail shopping experience at Apple, at a time when the company is poised to launch several new flagship products, including the iPhone 6 and the iWatch.

Updated MacBook Airs with Improved Haswell Processors See Minor Speed Boosts

Following the introduction of refreshed MacBook Airs yesterday, Geekbench 3 benchmarking scores have begun appearing, suggesting, as expected, just minor speed improvements for the new notebooks.

mbageekbench
Apple only updated the low-end processor option for the MacBook Air and that is seeing 32-bit single-core scores around 2532 and multi-core scores around 4781. Compared to the 2013 MacBook Air the new processor brings just a slight boost in processing power. The 11-inch 2013 MacBook Air saw average scores of 2379/4480, while the 13-inch version saw scores of 2369/4468.

macbook_air_2013_benchmarks
Single and multi-core Geekbench scores for the low-end 2013 MacBook Airs

Along with minor speed improvements, the new 1.4Ghz Core i5–4260U processor has also increased the battery life of some tasks, namely video playback, which has gained an extra hour on the 11-inch model and an extra two hours on the 13-inch model.

Most notably, Apple's update brought lower prices for the MacBook Air, dropping its price tag by $100 across the board in the United States and many other countries. MacBook Air prices now start at $899 instead of $999, and there are also several more affordable 2013 and 2012 options available in Apple's online refurbished store.

Though this update has not been a significant change for the MacBook Air, Apple is said to be working on a significantly improved version of the notebook with a 12-inch Retina display, a slimmer body with a fanless design, and a buttonless trackpad. This redesigned MacBook Air may launch towards the end of the year.

iPhone 6 Case Maker's Renderings Display Antenna Cutouts, Thin Design

iPhone 6 design renderings aimed at helping case manufacturers create early iPhone 6 cases ahead of the device's release have surfaced on Ukranian website UkrainianiPhone [Google Translate] (via Nowhereelse.fr), from what the site calls a "reliable source of information."

The renderings are seemingly based on the same general design principles found in schematics leaked back in early March, but they provide more detail on what we might possibly expect from the iPhone 6. As with most of the current design leaks, the authenticity of the renderings cannot be confirmed.

iphone6casingrender
While the majority of renderings, cases, and iPhone 6 details leaked up until this point have failed to explain how Apple will incorporate antennas into the iPhone 6, the new Ukrainian renderings suggest that the back shell of the iPhone will not be all one piece, potentially leaving room in the aluminum casing for possible antenna inserts, similar to the design of the existing iPhone 5s. There are separate top and bottom pieces depicted in the renderings as well, which also point towards an antenna.

iphone6casingrender3
According to the renderings, the device will have a thickness of 6mm, which is somewhat in line with predictions from reliable KGI securities analyst Ming-Chi Kuo, who pointed towards a thickness of 6.5 to 7mm. At 6mm, the iPhone 6 would be significantly thinner than the iPhone 5s, which is 7.6mm thick. The renderings also suggest the iPhone 6 will have a length of 138mm and a width of 67mm.

iphone6casingrender2
As with the original design schematics, the renderings incorporate a rounded flash, which is a departure from the existing pill-shaped True Tone flash introduced with the iPhone 5s. There's also a sleep/wake button located on the right side of the device, and rumors have thus far suggested Apple could move the button to make it easier to access sleep/wake on a larger device with one hand.

Overall, the renderings are more or less in line with previous iPhone 6 rumors, which have indeed pointed to a thinner design with smaller bezels. Apple's iPhone 6 is also expected to include an upgraded A8 processor, Touch ID, and an improved camera.

GameStop Expanding Beyond Video Games with Aggressive Growth Plans for 'Simply Mac' Stores

Major video game retailer GameStop is making a significant push to broaden its business, expanding its retail operations with new brands and stores that will focus on Apple gear and AT&T Mobility products, reports The Star-Telegram.

simply_mac_store
While the diversification will include a move into AT&T mobile services through GameStop's acquisition of Spring Mobile, of more interest for Apple users is GameStop's plans for Simply Mac, a chain of authorized Apple resale and repair shops that focuses on smaller markets where Apple has not shown interest in opening its own stores. Founded in 2006 in Utah, Simply Mac grew to eight stores by October 2012 when GameStop acquired a 49.9 percent stake in the Apple reseller. In November 2013, GameStop exercised an option to purchase the rest of Simply Mac, which now includes 23 locations focused in the western half of the United States, and GameStop has plans for a significant expansion of the Simply Mac network.
[GameStop CEO Paul] Raines said GameStop’s confidence in rapid growth at the small chains, acquired for about $110 million last year, is buoyed by their strong ties to industry leaders AT&T and Apple.

Steve Bain and Jason Ellis, the executives who built Simply Mac and Spring Mobile, continue to run the operations for GameStop and see strong growth opportunities. After opening 23 stores this year, Bain said, the company plans to open 50 more Simply Mac stores in 2015.
While its stores are smaller and lower profile than many of Apple's retail stores, Simply Mac's push to open nearly 75 stores through the end of 2015 appears to dwarf Apple's own plans in the United States. Apple typically opens around 30 stores per year, but at this point the majority of those are outside of the United States.
The “transformation,” as CEO Paul Raines dubbed it, is intended to keep GameStop growing and leverage its expertise in store operations and buying and selling used devices. He said he envisions GameStop as a “family of specialty retailers that make your favorite technologies affordable and simple.”
As GameStop expands into the lucrative mobile phone and Apple device market, the retailer plans to downsize its video games operations by closing up to 130 of its 6,400 GameStop stores sometime this year. Though video games will remain its primary focus, GameStop CEO Rob Lloyd believes the company's new technology brands could generate up to $1 billion in revenue and contribute up to 10 percent of GameStop's revenue by 2016.

This move into Apple's retail segment comes at a time when Apple is in the middle of a retail transition. The company is awaiting the arrival of retail head Angela Ahrendts, who is completing her transitionary period at Burberry. Apple also is rumored to be working on a mobile payments system under the leadership of Jennifer Bailey, who allegedly left her executive role in online retail to spearhead this new mobile initiative.

Apple Leaves Users Vulnerable By Not Fixing iOS and OS X Security Issues Simultaneously

Notable computer security researcher Kristin Paget, who worked on Apple's security team before leaving for Tesla in early 2014, has taken to her blog (via Ars Technica) to criticize Apple for fixing more than a dozen security flaws in iOS weeks after patching them in OS X.

mavericksios7
iOS 7.1.1, released yesterday, patched multiple WebKit vulnerabilities that were initially fixed in OS X with the release of Safari 7.0.3 on April 1. The delay between fixes, says Paget, alerted hackers to serious flaws potentially exploitable on Apple's mobile operating system and then gave hackers ample time to exploit the vulnerabilities.
Is this how you do business? Drop a patch for one product that quite literally lists out, in order, the security vulnerabilities in your platform, and then fail to patch those weaknesses on your other range of products for weeks afterwards? You really don't see anything wrong with this?

Someone tell me I'm not crazy here. Apple preaches the virtues of having the same kernel (and a bunch of other operating system goop) shared between two platforms – but then only patches those platforms one at a time, leaving the entire userbase of the other platform exposed to known security vulnerabilities for weeks at a time?
Addressing Apple, Paget goes on to write that Apple needs to sit in front of a chalkboard and write out "I will not use iOS to drop 0day on OSX, nor use OSX to drop 0day on iOS."

In addition to the WebKit vulnerabilities that were patched out of sync, Apple also recently exposed a major OS X flaw when patching the same flaw in iOS. Back in February, with the release of iOS 7.0.6, a major SSL connection verification vulnerability came to light. Known as the "goto fail" bug, it left iOS and OS X users vulnerable to man-in-the-middle attacks where hackers could pose as a trusted website to intercept communications or acquire sensitive information.

Apple launched iOS 7.0.6 on a Friday, fixing the vulnerability on iOS but leaving OS X users vulnerable to attack until the following Tuesday, when it released OS X 10.9.2 to patch the security flaw.

Apple Reports Record March Quarter Results, Splits Stock 7-for-1, and Boosts Share Buyback

Apple today announced financial results for the first calendar quarter and second fiscal quarter of 2014. For the quarter, Apple posted revenue of $45.6 billion and net quarterly profit of $10.2 billion, or $11.62 per diluted share, compared to revenue of $43.6 billion and net quarterly profit of $9.5 billion, or $10.09 per diluted share in the year-ago quarter.

Gross margin for the quarter was 39.3 percent compared to 37.5 percent in the year-ago quarter, with international sales accounting for 66 percent of revenue. Apple also declared an increased dividend payment of $3.29 per share, payable on May 15 to shareholders as of the close of trading on May 12. The company currently holds $150.6 billion in cash and marketable securities.

In addition to the increase in the dividend payment, Apple said it will dramatically increase its share repurchase authorization to $90 billion from $60 billion and will execute a 7-for-1 stock split as of June 9. The company says it expects to spend over $130 billion in cash under its capital return program by the end of 2015. Apple is now paying $11 billion per year in dividends to shareholders.

Apple previously had a 2-for-1 stock split back in 2005.
q22014linechart
Quarterly iPhone unit sales reached 43.7 million, compared to 37.4 million in the year-ago quarter, and the company sold 16.35 million iPads, down from 19.5 million in the year-ago quarter. Apple sold 4.1 million Macs compared to just under 4 million in the year-ago period.
“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”
Apple's guidance for the third quarter of fiscal 2014 includes expected revenue of $36-38 billion and gross margin between 37 and 38 percent.

q22014piechart
Apple will provide live streaming of its fiscal Q2 2014 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference Call and Q&A Highlights are available in reverse chronological order after the jump.

- 2:58 pm: The call is complete.



- 2:58 pm: A: Reason that I stripped off hobby label, when you look at sales of the Apple TV box itself, and the content that was bought directly off Apple TV, for 2013, that number was over $1 billion. It didn't feel right to me to refer to something that's over $1 billion as a hobby. From an investment point of view, we continue to make the product better and better so it doesn't feel right from that POV either. We have HBO Go already on Apple TV and you have to authenticate in order to use it, but you have to do that with Amazon's service as well from my brief read of their announcement. From that, they got some older content from HBO to put on there and I haven't had a chance to evaluate exactly what it is and don't have a personal POV of that. Look broadly, compares extremely favorable to the content that is on the Amazon box. Sold about 20 million Apple TVs and we have a pretty large installed base there. I'm feeling quite good about that business and where it can go.



- 2:56 pm: Q: Apple TV is no longer a hobby, why did you make that distinction. Interesting to hear your feedback on HBO/Amazon announcement today and what you think that means in terms of content partners being able to work with players like yourself.



- 2:56 pm: Looking at this data and deciding to continue investing in a big way. Plan to triple number of Apple Retail Stores in China over next two years, continuing to build out channel, expand online. 40,000 points of sale on iPhone. even 40k is low number considering broad land mass and number of folks in China. I feel like there's still loads of opportunity there and feel really good about how we're doing.



- 2:55 pm: A: All-time revenue record in Greater China, $9.8 billion. iPhone up 28% versus IDC market forecast of 20% growth. Gained share. Mac units were up double digit, up 13%, far outpacing IDC PC market forecast of negative 8%. Gained share there as well. iTunes software and services, more than doubled it year over year in triple digits, look at iPad, take out channel inventory ins and outs, look at demand instead of sell-in, grew by 6%. IDC expected flat tablet market in China. Literally did well in every single area in China. Wasn't just because we were able to come to an agreement with the world's largest carrier, that was key but as you can tell there are other things going on. Also, I had mentioned this briefly, if you look at some of the numbers we're seeing on first time iPhone buyers, people that bought the ipHone 4s, 85% were first time iPhone buyers. The 5c, 69% were first time iPhone buyers. These are extraordinary. As you expect, these are heavily android switchers. 62% of people who bought 4s switched, 60% who bought 5c switched from Android.



- 2:52 pm: Q: China Mobile is a driver in China, but can you talk about other carriers or products in China?



- 2:52 pm: A: Lot of moving parts, lot of acquisitions, lot of people giving up to a degree. At the end of the day, we see it as, the part of the market that we're interested in, the market of people who really want the best smartphones. They're not all at the high end of the price band. We have smartphones that go down to an affordable price with the 4s, we're proud to ship that product. I think that this quarter, if you were unsure, hopefully this quarter demonstrates to you that we can do well in a number of geographies, from emerging to developed markets. Some of the numbers we've experienced, through the first half of 2014, Brazil up 61%, Russia up 97%, Turkey up 56%, India up 55%, Vietnam up 262%. I could go on. The point is, there are an umber of markets out there where we're beginning to really catch on to a number of customers. I am particularly proud of the results in these markets because these have not been historic strong pints for Apple. We've been working at China for a while and we've learned a lot. I'm proud of what we've done there. Some of these other numbers that I've read show we've had success outside of there as well.



- 2:50 pm: Q: Some competitors are cutting prices quickly on smartphones, there's a lot going on with competitors. How are you seeing the market?



- 2:49 pm: So many examples out in the marketplace where it’s clear the objective was to be first. Apple customers want great, insanely great, and that's what we want to deliver. That's the way we look at it. From an acquisitions point of view, we have done 24 in 18 months. We're on the prowl. We look for companies that have great people and great technology and that fit culturally. We don't have a rule that says we can't spend a lot. It's important to us that strategically it makes sense and that it adds values to our shareholders. Not in a race to spend the most or acquire the most. Want to improve products. To the extent that they do that, we will continue to acquire. We will seem to keep some quiet and some of them are impossible to keep quiet.



- 2:48 pm: A: Stay focused on things we do best and focus on high level of quality that our customers expect. Feel comfortable in expanding things we're working on, doing that in the background but we're not ready to pull the string on the curtain. Have great things we're working on that I'm proud of and excited about. For us, we care about every detail. When you care about every detail and about getting everything right, it takes a long time to do that. That's not new. We didn't ship the first MP3 player, nor the first smartphone, nor the first tablet. In fact, there were tablets being shipped a decade or so before then. We shipped first successful modern tablet, smartphone and MP3 player. It means much more to us to get it right than to be first.



- 2:46 pm: Q: Is there something about Apple's product set that keeps Apple focused on hardware rather than making TV shows or whatever that the company might have the money to do?



- 2:46 pm: In the Enterprise, we're seeing virtually all -- 98% of the Fortune 500 using iPad -- latest data says 91% of activations of tablets on Enterprise were iPads. Astonishing number and many of those enterprises are writing apps that are key proprietary apps for running that business. This is great for that company because they're more productive. Once again, just like in education, what we have to do in Enterprise is focus on penetration. needs to be deeper and broader but int terms of having people write apps we're doing a good job. If you look at US as a proxy in retail, NPD, we had 46% share. Embedded in that 46%, there's a lot of things in there that I wouldn't put in the same category as iPad that are weighing the share down. Not a market we would play in in a type of product you would never see an Apple brand on. Feel like we're doing well there. Office, I believe, does help. Very unclear to say how much. If it would have been done earlier, it would have been even better for Microsoft frankly. Lots of alternatives out there from productivity point of view. Some of which we brought to market, some brought by other developers. Is a key franchise in Enterprise, having it on iPad is good and I wholeheartedly welcome Microsoft the App Store to sell Office. Customers responding well. Customer sat is 98% on iPad. Nothing in the world with 98% customer sat. 2/3 planning to buy a tablet planning to buy an iPad. Usage numbers are off the charts, far and exceeding Android. 4x exceeding web traffic of Android combined. When I back up from all of these, I feel great. Every 90 days it won't be a number that everybody is thrilled with, but over the arc of time, iPad looks very very good. iPad has a great future. The thing that drives us is the "next" iPads, the things that are in the pipeline. The things we can do to make the iPad even better. No shortage of work going in on that, nor any shortage of ideas. I can't help but be extremely excited about where we are and I think we did a reasonable job of explaining what the disconnect between what we expected (we hit it, the high end of our expectation) and the street's view of it. I believe the vast majority is just channel inventory. We should have been even clearer on last quarter, but I am very bullish on iPad.



- 2:41 pm: A: When I back up from iPad, here's what I see. It's absolutely the fastest growing product in Apple's history. Its the only product that we've ever made that was instantly a hit in three of our key markets, consumer to business including enterprise, and education. If you look at it, 4 years after launching the first iPad, sold 210 million. More than we or I think anyone thought was possible. Interesting to note that that's twice as many iPhones as we'd sold in a comparable period of time. 7x as many iPods as we'd sold in that period of time. Important to put into perspective. Have come a long way very quickly. Looking at by market, by education market, we have 95% share. Focus in education is on penetration. Getting more schools to buy. My belief is that the match has been lit and its very clear yo the educators that have studied this, student achievement is higher with iPad in the classroom than without it.



- 2:39 pm: Q: I understand the iPad is not as weak as it appears on a sell through basis but relatively flat year over year. Can that accelerate with Office on the iPad?



- 2:39 pm: Most important thing that we do is to make great products that really get our users excited to want the next one. That will always be the case. You can bet that's where the vast majority of our attention is there. In terms of BOM pressure of any new product, you've seen in the past that it exists. We also have a way of working down the cost curve. That was key in achieving the 39.3% gross margin for this past quarter. As I said before, we price things at a level that is fair for the value that we're providing. We're certainly not stuck on certain price points, we price at value that are fair for the value that we're delivering.



- 2:38 pm: A: On iPhone 4 question, we sold a very, very low, single digit percentage of those. Had extremely minimal impact on results on the quarter. In terms of general upgrade or installed base, some of the programs that the carriers are running, may serve to increase the upgrade cycle. Some areas where customers can pay a bit more in the beginning and have the ability to essentially upgrade each year. Some that work that way, some that work the way that more of the way that you're leaning. How these balance are very difficult currently to conclude. Regardless of how those balance, what I see as the bigger opportunity for Apple, the smartphone market is only a billion or so units. Will eventually take over the entire mobile phone market. We've seen our ability to attract new users to iPhone to be very significant in the emerging markets. We were seeing new to iPhone numbers on the iPhone 4s sales in the 80%’s in certain large geo's. This gives us great comfort that we can continue to grow and we may not be able to attract some of those buyers to our top phone because of price point, but if we can get them in on the entry iPhone, it gives them a great product and a great value and gets them into the ecosystem. As you know, our ability to keep customers is very good and our ability to show other products that Apple produces to a family that's buying Apple products is also very good. At the macro level, I see the opportunity of the market and getting more people into the Apple ecosystem much larger than any of the noise around the different carrier plans. Some of which, I think, help, and some of which work the opposite way. Unclear to me how those net. Also important to know that the bulk of the things that you're seeing in the US are not occurring in many other geo's in terms of upgrade policies and so forth. Each country has its own cadence associated with this. The US is in the 30% of our business, not 100% so it's important to weigh it with the proper perspective.



- 2:34 pm: Q: If you could talk about how you think about replacement cycles generally for the iPhone, over the longer term. US carriers have started introducing plans that may ultimately encourage people to keep their phone longer than two years because their total price paid is less. One could argue and I'd like your opinion about that pushing out replacement cycles. The imperative for Apple to continue to introduce great products to encourage people to upgrade with great frequency, introducing great products puts pressure on BOM and pricing. In order to make a great phone, it costs more to do so, managing that margin pressure?



- 2:32 pm: A: When you look at $41 in decline, about half of that was driven because we have continued to do very well in emerging markets with the 4s. I've mentioned that there are a lot of markets where we have grown very strongly. Half of that decline came from stronger sales of the 4s. Other half was as we move away from the quarter when we launch the product, we have lower capacity mix.



- 2:32 pm: Q: On iPhone ASPs this quarter, they were down $40. Largest sequential decline that we've seen in history. Can you help us understand what drove that? Mix? Good growth in each of three models. were you seeing strong growth in 4s? How significant, if any, was selling older generation iPhone 4?



- 2:30 pm: A: We saw some pressure in the quarter because of stricter enforcement of upgrade policies, primarily in the US. If you really look at iPhone, the strength was very broad based. As I had mentioned, we gained share in a whole host of markets. From developing like US/UK/France/Germany, to more emerging like China/Vietnam, and had the largest total sales of iPhone in BRIC countries than we've ever seen.



- 2:30 pm: Q: Looking at iPhone upside for March quarter, China was a key driver. Within the US, did you see as much pressure in US carrier upgrade policies that you saw in holiday quarter? Is this headwind behind us now?



- 2:29 pm: A: March quarter was very good, three reasons: better volume, better costs, favorable mix in both products and services. Q3, as you've seen from our revenue guidance, we are expecting some loss of leverage from sequential decline in revenue. Expecting less favorable mix. This is something typical that happens to us as we move farther away from the quarter when we launch a new product. To offset, it's a partial offset, we will have some cost improvements.



- 2:28 pm: Q: Can you walk through key drivers of June quarter margin upsides?



- 2:28 pm: A: We believe things should be priced at a fair price for what they deliver. We make decisions when we're closer to market.



- 2:28 pm: Q: Question around iPhone ASP. Looking at trend, iPhone 5s demand has surprised the upside this cycle. Does that give you confidence that Apple could charge more for highly innovative products in the future or does the strategy remain to keep innovation at the same price as current products?



- 2:27 pm: A: In that category, there are several things not just App Store revenues. If you look at App Store only, it would look a little different. In terms of your question, I do believe that we can monetize more than we are from a services POV in existing areas and in new areas. I'm encouraged when we look at the App Store, the strength was broad-based. Growth was in the triple digits in China.



- 2:26 pm: Q: 800 million accounts is big jump, yet iTunes software and services growth decelerated. What's your view on better monetizing installed base in the future?



- 2:25 pm: We wish him all the best in his approaching retirement at the end of September. Would also like to recognize him, that he has never missed guidance in his 10 years as CFO which must be an all-time record for CFO's.



- 2:25 pm: Tim: Peter Oppenheimer transitioning from CFO role in June. Peter has been Apple CFO for 10 years. Apple is 20x the size it was when Peter became CFO. "Expertise, leadership and incredibly hard work have been instrumental to Apple's success."



- 2:24 pm: Taking 7:1 stock split to make Apple more accessible to more investors.



- 2:23 pm: Expect revenue between $36-38 billion, compared to $35.3 billion YoY. Gross margin between 37 and 38%



- 2:22 pm: To repatriate foreign cash under current US tax law, would incur significant tax consequences. Don't believe this would be in best interest of tax holders. Encourage streamlining of tax code. To execute capital return program, intend to access debt markets again.



- 2:21 pm: Domestic cash down to $11 billion this year. Will hold sufficient domestic cash to ensure liquidity.



- 2:21 pm: Apple one of the largest dividend payers in the world, paying $11 billion per year.



- 2:20 pm: Have delivered on intention to return capital to shareholders at fast pace. Spend $66 billion of total $100 billion program announced last year.



- 2:19 pm: By end of March 2014, spent $46 billion in $60 billion share repurchase authorization.



- 2:17 pm: Among people planning to purchase a tablet within 90 days, 2/3 plan to buy an iPad.



- 2:16 pm: iPad generated 4x mobile web traffic than all Android tablets combined.



- 2:15 pm: Strong performance from MacBook Pro and MacBook Air



- 2:14 pm: Cumulative app downloads top 70 billion.



- 2:14 pm: iTunes Stores generated $5.2 billion in billings, up 24% year over year.



- 2:13 pm: Luca Maestri is taking over the role of current CFO Peter Oppenheimer on the call. He will be promoted to CFO later this year when Oppenheimer retires.



- 2:12 pm: iPhone increase of 6.3 million iPhones from last year, 17% growth. China Mobile drew strong growth.



- 2:10 pm: Dividend is important, increasing for second time in two years. Planning for annual dividend increases going forward.



- 2:10 pm: Think deliberately about how much, and in which way to return cash to shareholders. Vast majority of capital return to share repurchase because believe current stock price is below value.



- 2:10 pm: Able to return significant capital to shareholders. Began 2 years ago, more than doubled program last year. Increasing size once again adding $30 billion. $130 billion in total return. Size and pace is unprecedented, and expect to complete by December 2015.



- 2:09 pm: We appreciate all input from shareholders. Will continue to seek input going forward, and will update conclusions around this time each year. Continually evaluate return of capital in light of most current information. Enables us to be thoughtful about size, mix, pace of program.



- 2:08 pm: Acquired 24 companies in past 18 months. Must maintain financial flexibility.



- 2:08 pm: Update to capital return program. Guiding principles for capital allocation, and conclusion on changes making for this year: Apple created tremendous value for shareholders by creating great products that enrich people's lives. That will always be our top priority and driving force. Invest in R&D, investing in hardware, software and services, supply chain, global presence with retail stores, marketing and distribution, expanding products and services into new categories and "we are not going to underinvest in this business".



- 2:07 pm: Strong halo effect we've seen over and over again in our history. Customers that have a great experience with their first Apple product become strong and loyal owners.



- 2:06 pm: Two-thirds of people registering an iPad in the last six months were new to iPad. Half of people registering iPhones were new to iPhone.



- 2:06 pm: Total revenue of over $103 billion in first 6 months, earnings per share growth close to double digits.



- 2:06 pm: Investing in retail stores, opened first stores in Brazil and Turkey, stores in 15 countries. New retail and online leader Angela Ahrendts will be joining Apple next week.



- 2:05 pm: Strong results in Greater China, all-time quarterly revenue record, approaching $10 billion. Japan, revenue up 26% in spite of foreign exchange headwinds and where smartphone market share reached 55%.



- 2:05 pm: Continue to believe tablet market will surpass PC market and that Apple will be beneficiary of this trend.



- 2:05 pm: iPad sales came in at high end of Apple's internal expectations. Realize they were lower than analyst expectations. Almost all of the difference can be explained by two factors: in March 2013 quarter, significantly increased iPad channel inventory. This year, significantly reduced it. Second, ended December quarter 2012 with substantial backlog of iPad mini that was shipped in the March quarter. Ended December this year in supply/demand balance.



- 2:04 pm: Gained share in computer market, defied industry trends by growing while industry contracted.



- 2:03 pm: Have 800 million iTunes accounts, most with credit cards attached.



- 2:03 pm: New all-time record for sales in BRIC countries. (Brazil, Russia, India, China)



- 2:03 pm: Gained share in US, UK, Canada, Germany, France, Vietnam and Greater China.



- 2:03 pm: Demand for each iPhone model stronger than its predecessor.



- 2:03 pm: Best gross margin percentage since September 2012. iPhone was key in driving stronger than expected results, 44 million iPhones, a March quarter record.



- 2:02 pm: Tim Cook: "Very strong results we're reporting for the March quarter." Is a new March quarter record and strongest non-holiday quarter ever.



- 2:01 pm: Apple CEO Tim Cook on the call with CFO Peter Oppenheimer and Corporate Controller (and future CFO) Luca Maestri.



- 2:00 pm: Apple's earnings call will begin momentarily.



- 1:56 pm: Apple's stock price is up significantly after hours, up nearly 7.5% to $563 from $525.



- 1:47 pm: The second quarter earnings call will begin in approximately 10 minutes.



Former Burberry CEO Angela Ahrendts to Join Apple Next Week

During today's second quarter earnings call, Apple CEO Tim Cook announced that the company's new retail and online leader, Angela Ahrendts, will be joining Apple next week.

Ahrendts first resigned from British luxury fashion house Burberry in October of 2013, but was contractually obligated to stay on with the company for another six months as it transitioned to new CEO Christopher Bailey. As of April, Ahrendts fulfilled her obligations and became free to leave Burberry to join Apple.

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Earlier this month, rumors suggested Ahrendts might stay on with Burberry until June in order to pick up a two million pound performance bonus, but it appears that she will not be staying with the company in order to collect the payment.

Ahrendts will join Apple as the Senior Vice President of Retail and Online Stores, a position that has seen significant turnover over the past several years. In 2011, Ron Johnson left Apple for J.C. Penney, after building up Apple's retail presence during his 11-year tenure. Johnson was then replaced by Dixons CEO John Browett, who served less than a year at Apple. Since Browett's departure, the position has been empty.

Apple Acquired 24 Companies Over Last 18 Months, 'We're On The Prowl' for More

During today's second quarter earnings call, Apple CEO Tim Cook revealed that Apple has purchased a total of 24 companies over the last 18 months, some that are known and some that remain unknown.

Just over half of Apple’s acquisitions have come to light, which means the company has purchased a number of additional companies that have not been disclosed. So far in 2014, Apple acquired SnappyLabs, a company that produced a burst-mode photo app, and Burstly, the company behind the Testflight iOS beta testing platform.

2013 saw Apple acquire several different mapping apps, including BroadMap, Embark, HopStop, Locationary, and WiFiSlam, along with other notable additions like 3D company PrimeSense and Novauris, a speech recognition company. Back in October, Tim Cook noted Apple had completed 15 strategic acquisitions in 2013, pointing towards a number of new acquisitions already in 2014.

The technology from Apple’s acquisitions will likely make its way into future products and updates. For example, all of the mapping acquisitions are expected to be put to use in iOS 8, which will see the addition of transit directions and possibly improved indoor mapping techniques.

During the call, Apple CEO Tim Cook noted that investing in research and development along with hardware, software, and services were top priorities, and that the company was "on the prowl" for new companies to acquire.

Apple CEO Tim Cook: It 'Means More to Us to Get it Right' Than to Be First

During the question and answer portion of today's financial earnings call, Apple CEO Tim Cook explained why the company has been slow to put products out in 2014, pointing towards the company’s attention to detail and its desire to "perform at a really high level of quality" that Apple's customers expect.

Cook noted that Apple did not ship the first MP3 player, smartphone, or tablet, but he said that the company did release the first "acceptable" and "modern" smartphone, tablet, and MP3 player when it launched the iPhone, iPad, and iPod.

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"We care about every detail and it takes us a bit longer to do that. That's always been the case," he said. "It means more to us to get it right than to be first."

Cook pointed towards examples in the marketplace where the clear objective was to be first, possibly referring to Samsung and its poorly received Galaxy Gear smart watch. Apple customers "want great, insanely great," said Cook, and "that’s what we want to deliver."

According to Cook, Apple has many products in the pipeline that the company is excited about, but it is not yet ready to "pull the string on the curtain." He did say, however, that Apple has expanded the number of things the company is working on behind the scenes.

iPhone 6 Case Compared to iPhone 5s, Nexus 5 and Galaxy Note 3 in New Video

We've seen several examples of cases designed for the rumored 4.7-inch version of the upcoming iPhone 6, and in a new video, Unbox Therapy compares a 4.7-inch iPhone 6 case to the iPhone 5s, the Nexus 5 and the Galaxy Note 3, giving us an idea of how the iPhone 6 might look next to other large-screened devices.

The 4.7-inch case is depicted next to the 4-inch iPhone 5s, the 4.95-inch Nexus 5, and the 5.7-inch Galaxy Note 3. The case is closest in size to the Nexus 5, which gives the best representation of how a 4.7-inch iPhone may feel in the hand. The iPhone 5s looks quite a bit smaller than the case, while the Galaxy Note 3 looks significantly larger.



Along with a size comparison, the video points out some of the design features on the case, which may translate to design changes on the iPhone 6. As has been pointed out in other case and part leaks, the sleep/wake button has been moved from the top right of the device to the right side.

Rumors have suggested the sleep/wake button might be relocated in order to improve one-handed use on a larger device, and the volume buttons might be altered as well, gaining a rectangular iPad-mini-style shape rather than the existing circular buttons on the iPhone 5s.

The iPhone 6 case is also noted to be quite thin, which is in line with previous rumors about the device. According to KGI Securities analyst Ming-Chi Kuo, the iPhone 6 could be significantly thinner than the existing 7.6mm iPhone 5s at 6.5–7.0mm and it may also have a narrower bezel.

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Rendering of the iPhone 6 in both 4.7 and 5.7-inch sizes

Apple is expected to ship the iPhone 6 in two different sizes, the 4.7-inch version described in the video and also a 5.5-inch version that has reportedly seen some production delays. While the 4.7-inch version of the iPhone 6 may make its debut as soon as September, the 5.5-inch version may not ship until 2015.

Along with a thinner profile, multiple sizes, and a narrower bezel, the iPhone 6 might include a sapphire crystal screen, an A8 processor, and camera improvements in the form of optical image stabilization.