Edible Apple

It’s earnings season, ya’ll. Yesterday AT&T reported their earnings amidst record quarterly smartphone and iPhone sales, and now we have Verizon jumping into the fray with impressive smartphone sales as well.

For the fourth quarter of 2012, Verizon announced via its 8-K regulatory filing with the SEC that it activated 9.8 million smartphones, stressing that that figure was comprised of a “higher mix of Apple smartphones.”

During the same quarter a year-ago, Verizon activated 7.7 million smartphones, of which 4.2 million were iPhones. If Apple’s iPhones accounted for the same percentage of smartphone sales this quarter, that would equate to 5.34 million iPhone activations. Of course, this is all speculation and we’ll know for sure how many iPhones Apple sold overall come January 23 when it announces its earnings results.

Notably, Verizon CEO Lowell McAdam told folks at the 2013 Citi Global Internet, Media & Communications Conference that Q4 2012 was Verizon’s best quarter in company history. The nation’s largest carrier, during the last three months of 2012, added 2.1 million new subscribers, an all time high according to McAdam.

via SEC

Hot on the heels of a report from Digitimes regarding a low-cost iPhone in the works for 2013 comes word from the Wall Street Journal echoing that sentiment.

While Apple has explored such a device for years, the plan has been progressing and a less expensive version of the flagship device could launch as soon as later this year, one of the people said.

The cheaper phone could resemble the standard iPhone, with a different, less-expensive body, one of the people said. One possibility Apple has considered is lowering the cost of the device by using a different shell made of polycarbonate plastic. Many other parts could remain the same or be recycled from older iPhone models.

Digitimes noted that this supposed low-cost iPhone will come with a larger screen – perhaps the 4 inch screen that currently graces the iPhone 5 – and may sport an entirely new design.

While we’ve certain heard rumors of a cheaper iPhone model make the rounds for years now, Apple thus far has had success in offering previous generation iPhones at lower pricing to consumers. One wonders, though, if the margins on these devices aren’t quite high enough and prompted Apple to explore a lower cost option with cheaper materials a’la what the aforementioned reports indicate.

What’s more, the WSJ article was since echoed by Bloomberg which reports:

Apple, which had been working on a more affordable smartphone since at least February 2011, is weighing retail prices of $99 to $149 for a device that would debut in late 2013, at the earliest…

Again, Apple already has an iPhone at the $99 pricepoint but perhaps an iPhone model without all of the bells and whistles will pad Apple’s bottom line a little bit more than what they have now.

With all tech eyes on CES this week, Apple CEO Tim Cook though it was high time to make his second trip to China in just 10 months.

China, of course, remains a lynch-pin in Apple’s continued growth and it’s no coincidence that Cook has repeatedly mentioned during earnings conference calls that Apple has only begun to scratch the surface with respect to the potential that awaits them in China.

In addition to a potential deal with China Mobile – which, I remind you, boasts hundreds of millions of cell subscribers, China remains a valuable cog in Apple’s retail expansion as well. Notably, the number of Apple retail stores in the country (11 total) have nearly doubled in the last year.

As for the purpose behind Cook’s visit, Bloomberg notes that the Apple CEO met with Miao Wei, China’s head of of the Ministry of Industry and Information Technology to  discuss the “development of China’s information technology industry, global mobile communications and Apple’s business in China.”

via Bloomberg

A new report claims that Apple in 2013 will release a larger, albeit cheaper, iPhone device in an attempt to make inroads in developing markets. The report, originally sourced from Digitimes, notes that this alleged larger iPhone will sport a completely new exterior design.

Growing sales of the iPad mini, particularly in China and other emerging markets, may have served as an impetus for Apple to roll out a low-cost iPhone to repeat its success gained on the sale of the iPad mini, the sources commented.

Indeed, the lower cost iPad Mini has seemingly been a runaway hit for Apple thus far. In fact, it took Apple a good few weeks just to be able to keep up with consumer demand. More recently, it was reported that workers at Foxconn will be working through the Chinese New Year on account of surging iPad Mini demand.

So from that angle, it does stand to reason that Apple may be more open to releasing a  lower-cost iPhone device, presumably one without a Retina Display in an effort to keep costs down.

But remember that rumors of cheaper iPhone models have existed for years now and all Apple has really done in that regard is to lower the pricepoint on previous iPhone models.

What makes this report interesting is that it comes amid a number of other reports claiming that Apple may release iPhone models in a variety of form factors later this year. With Samsung’s lineup of Android handsets still selling extremely well, perhaps Apple has seen the merits in having a more varied lineup that appeals to a greater pool of consumers.

Lastly, the report concludes with a blurb about Apple releasing a TD compliant iPhone on China Mobile this year. Of course, the rumblings regarding Apple striking a deal with China Mobile have persisted for years now so it’s probably best to take a wait-and-see approach in that regard. One thing’s for sure though – once the iPhone does land on China Mobile – which is the largest mobile carrier in the world – expect iPhone sales to really skyrocket.

via Digitimes

As Apple prepares to release its earnings from the past quarter in just a few weeks, the evidence that Apple will have an all-time record setting blowout quarter continues to pile up.

First, there’s the obvious fact that this past quarter saw the release of a number of new Apple products; the iPhone 5, the iPad Mini, and last but not least, the most impressive iPod refresh we’ve seen in some time. What’s more, Apple has only recently been able to churn up its iPhone 5 and iPad Mini supply to keep up with raging demand.

And earlier today, AT&T released its earnings report for the last 3 months of 2012 and announced that it had sold more iPhones during the quarter than it ever had before.

We had another incredible quarter of smartphone sales as the mobile Internet continues to drive strong growth in wireless,” said Ralph de la Vega, president and chief executive officer for AT&T Mobility. “These are the industry’s most valuable postpaid subscribers with average revenues twice that of non-smartphone subscribers. During the quarter, we averaged more than 110,000 smartphone sales a day as customers flocked to our leading portfolio of the latest Android, Apple and Windows devices.

All told, AT&T sold over 10 million smartphones during the last quarter. By way of comparison, AT&T during the fourth quarter of 2011 sold 9.4 million smartphones, of which 7.6 million were iPhones.

via AT&T

Always looking to push the envelope, Apple is reportedly looking into implementing IGZO display technology into future generations of the iPhone and iPad.

IGZO stands for indium gallium zinc oxide – for all you science nerds out there, and will perhaps someday be used in new types of LCD screens. The advantage of IGZO displays is that they are thinner and provide higher resolution while using less power – and given the plethora of processor intensive mobile computing tasks these days, efficient power consumption is always at a premium.

Apple is reportedly in close discussions with Sharp regarding just how much IGZO supply will be available in 2013. With Apple selling millions of iOS devices each and every year, finding a supplier capable of keeping up with demand is clearly something Apple needs to take with utmost seriousness.

Apple is reportedly further evaluating how much IGZO panel supply will be available in 2013 if it were to use the technology in its next generation iPad, iPad mini and iPhone products, according to industry sources.

The sources said Apple is in further discussions with Sharp over IGZO panel production capacity estimates for 2013 and is also inquiring about whether AU Optronics’ (AUO) L5C line could be used to produce the technology.

Additionally, Innolux Corporation (formerly Chimei Innolux, or CMI) has reportedly been licensed by Sharp to use Sharp’s IGZO technology on its 3G and 5G lines, which could mean that Innolux may enter Apple’s supply chain in the future, added the sources.

via Digitimes

Well that was quick. Developers are already reporting seeing evidence of new iPhone hardware and iOS software in their usage logs.

A number of developers contacted The Next Web and told them that they’ve been seeing references to ‘iPhone6,1’ data strings running iOS 7. As a quick primer, Apple designates its hardware data strings as such – the first digit indicates a major release while the second digit indicates a minor upgrade or hardware difference. That said, the original iPhone was ‘iPhone1,1’ while the Verizon model of the iPhone 4 was ‘iPhone4,2.”

From the developer logs that we have seen, the app requests originate from an IP address on Apple’s Cupertino campus, suggesting that members of Apple’s software development and app teams are compatibility testing some of the more popular or well-known applications already on the App Store.

Although OS and device data can be faked, the unique IP footprint leading back to Apple’s Cupertino campus leads us to believe this is not one of those attempts.

Apple typically unveils new iOS updates at its annual WWDC conference each Summer. That being the case, it’s relatively early in the year for developers to be seeing references to iOS 7 already. Perhaps, following the drama that ensued following iOS 6 and Maps, Apple is initiating testing earlier than it typically has in the past.

As for what we may see in iOS 7, that remains anybody’s guess though there has been a rumbling or two  regarding NFC functionality.

Adding more credence to a report from last week which claimed that Apple was going to partner up with Broadcom to deliver 802.11ac networking (aka 5GB WiFi) to its line of desktop and notebook computers is a new job posting from Apple explicitly seeking an System Test Engineer with 802.11ac expertise.

The job posting reads:

As it stands now, Apple’s current lineup of Macs utilize the 802.11n networking standard which is capable of data transfers of 450Mbps with three antennas, something 802.11ac can do with just one. And with three antennas, the 802.11ac chipset offers 1.3Gbps of throughput, all the while providing improved power efficiency.

via AppleBitch

In 2012, Apple finally released a revamped iMac that was incredibly sleeker than its predecessor. As we look ahead to 2013, don’t expect any major hardware changes to Apple’s desktop lineup. But if you’re in the mood for significant internal upgrades, Apple may have you covered.

The Next Web is reporting that Apple recently struck a deal with Broadcom wherein the chip maker will provide Apple with a 802.11ac networking chipset, enabling future Macs to take advantage of super fast wireless speeds.

802.11ac is often referred to as 5G WiFi, offering faster throughput, higher capacity, wider coverage and improved power efficiency. Products offering 802.11n connectivity (found in most consumer electronics) provide connections up to 450Mbps with three antennas, while 802.11ac equivalents start at 450Mbps for one antennae and are capable of almost tripling its predecessor with 1.3Gbps throughput via three antennas.

Broadcom describes 5G WiFi as follows: “5G WiFi is the next generation Wi-Fi standard required for today’s mobile and video era and is 3x faster and 6x more power efficient than previous generation 802.11an devices. Based on 802.11ac, 5G WiFi is a major evolutionary step from the existing 802.11a/b/g/n networks.”

The report notes that Broadcom’s work on the new WiFi chip remains in development but hopefully we’ll be seeing them trickle into Apple’s Mac lineup sooner than later.

Last week there was a lot of hullabaloo surrounding Apple’s alleged interest in acquiring Waze, the social turn-by-turn navigation company based founded by Israeli’s Ehud Shabtai, Amir Shinar and Uri Levine. In case you’re unfamiliar, Waze uses crowd-sourcing from drivers on the road to provide real time traffic updates. The service also enables users to report traffic jams, road closings, and accidents as they occur. To date, there are over 30 million users using Waze.

Given Apple’s publicized struggles with its own mapping software, it wasn’t hard to believe that the company might be genuinely interested in acquiring Waze. Besides, Apple already does license some of its mapping data from Waze.

Over the past few days, word quickly spread that Apple was going to acquire Waze. And just as quickly, word emerged that the deal would not be happening. Next came reports that Apple made a $500 million offer to acquire the company, only to be rebuffed as Waze and its investors were holding out for a cool $750 million. And following that came reports that Apple was never seriously interested in acquiring Waze in the first place.

It’s really hard to know what’s really going on, but one thing’s for sure – it seems that a lot of tech big wigs have their eyes on Waze.

According to the Israeli-based Haaretz newspaper, senior executives from Waze met with the higher ups at Facebook, Microsoft and Google – all within the last month. And highlighting the serious nature of said talks, the aforementioned meetings were attended by CEOs Mark Zuckerberg and Steve Ballmer. The report notes that all three companies were interested in acquiring the mapping company and even made offers within the last year only to be shot down. Microsoft, in particular, was said to be really interested in striking a deal with Waze. Remember, Microsoft has already invested upwards of $25 million into Waze.

In any event, it appears that either Waze wants to go it alone, or it’s still holding out for a buyout worth hundreds of million dollars more than what some companies are willing to put down. Some of Waze’s investors reportedly are seeking a buyout that values the company at one billion dollars.

So it’s hard to make sense of all these rumors. Is it possible that all of these stories are an attempt by Waze to up the asking price by making it seem like everyone is keen on buying them out? Or, equally plausible, are all of these companies genuinely interested in the company.

via Haaretz

With CES kicking off tomorrow, don’t sleep on Apple. The company today issued a press release boasting that they’ve now seen over 40 billion downloads from the iTunes App Store. What’s more, the press release boasts of over 500 million active iTunes accounts and over 775,000 available applications for iOS devices.

“It has been an incredible year for the iOS developer community,” explained Eddy Cue, Apple’s senior vice president of Internet Software and Services. “Developers have made over seven billion dollars on the App Store, and we continue to invest in providing them with the best ecosystem so they can create the most innovative apps in the world.”

And illustrating just how fast the iOS ecosystem is growing, almost half of the aforementioned 40 billion downloads occurred in 2012. What’s more, over 2 billion applications were downloaded this past December, setting a monthly download record in the process.

Even more noteworthy, I think, is that the App Store has now doled out over $7 billion to developers. Money is the name of the game and in that regard no other app store can even hold a candle to what Apple is providing developer right now. If you want to monetize your apps, there’s no disputing that the iTunes App Store provides the best avenue for that in the tech world today.

Apple’s press release also highlights some of the more noteworthy/successful app releases of 2012.

In 2012, the husband and wife team at Imangi Studios saw their game Temple Run downloaded more than 75 million times; Backflip Studios and Supercell, two emerging game development studios, brought in over $100 million combined for their leading freemium titles DragonVale and Clash of Clans; and emerging services including Uber, Flipboard, HotelTonight, and AirBnB attracted millions of users on iOS. Companies including Electronic Arts, Ubisoft, Autodesk, Marvel and Major League Baseball continued to expand their iOS offerings, while developers like JJ Abrams’ Bad Robot Interactive and Bottle Rocket Apps continued to push the boundaries of what iOS apps can do.

via Apple

In late December, the Wall Street Journal reported that Apple, along with Microsoft and Google, were all interested in acquiring a startup called  id8 Group R2 Studios Inc.

R2 Studios, which is developing home-media and automation technology, has remained largely mum about its plans but last year released an app that turns Android phones into touch panels for controlling heating and lighting systems wirelessly. R2 Studios also holds some patents related to controlling electronic devices and interfaces.

Clearly, as the battle for control of the living room remains up for grabs, home automation will increasingly take on greater importance.

In any event, the WSJ has now updated its original story with news that Microsoft acquired R2 Studios for an undisclosed sum.

R2 studios was launched by Blake Krikorian who you might know as the man behind Slingbox. Given Microsoft’s place in the home theatre space with Xbox, it’ll be interesting to see what Krikorian – who will be joining Microsoft along with members of his team – have in store.

While the initial report relayed that R2 studios focused on home-media and automation technology, the most recent report focuses exclusively on the company’s technology as it pertains to distributing and displaying media content. So perhaps the home automation technology angle is a bit premature.

Lastly, the initial WSJ story noted that talks between R2 and the aforementioned companies were all preliminary. In other words, we have no idea just how seriously Apple was, if it all, in acquiring the company.

via WSJ