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AAPL has huge potential for more monthly revenue, says Goldman Sachs, estimating $7.6B/month

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A Goldman Sachs investment note argues that Apple has huge potential for generating more recurring revenue, suggesting an opportunity to generate an additional $7.6B a month, reports Business Insider. The company points to the rumored Apple TV subscription service as one future source of monthly revenue.

In a recurring revenue framework, we have constructed an average revenue per user (ARPU) metric that captures the installment plan pricing of the iPhone ($32/month), assumed installment plans for the other hardware products, and services (e.g. Music at $10/mo, TV at $40/mo) … 


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AAPL now taking 94% of entire smartphone industry profits, up from 92% last quarter – Canaccord

IMAGE DISTRIBUTED FOR APPLE - An Apple Store employee shows off a new iPhone at the iPhone 6 launch at the Eaton Centre Apple Store on Friday, September 19, 2014, in Toronto. (Photo by Ryan Emberley/Invision for Apple/AP Images)

Canaccord Genuity estimated back in July that Apple was taking home 92% of the profits in the entire smartphone industry, and now says the figure climbed even higher last quarter, hitting 94%. Samsung was the only other company to make a profit, says the report, with 11% – the somewhat odd math explained by the fact that everyone else is losing money.

Investors Business Daily quotes analyst Michael Walkley predicting continued strong performance by Apple.

“Apple dominated the premium-tier global smartphone market during calendar Q3, with record share of industry profits,” Walkley said in the report. “We believe the iPhone 6 and 6S products should continue to post strong sales and high-end smartphone market share gains.

“With only 31% of the iPhone installed base having upgraded to the iPhone 6 and 6 Plus devices by Apple’s fiscal Q4 2015 (ended Sept. 26), we anticipate continued strong replacement sales through calendar 2016 and beyond.”

Tim Cook said last month that Apple was expecting big things from the holiday quarter.

We are heading into the holidays with our strongest product lineup yet, including iPhone 6s and iPhone 6s Plus, Apple Watch with an expanded lineup of cases and bands, the new iPad Pro and the all-new Apple TV.

The company reported record earnings in its fiscal 2015 year, which ended in September.

Photo: Ryan Emberley/Invision for Apple/AP Images.

Early Mac UI designers say Apple has abandoned many of its human interface design principles

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Two of the early Mac user-interface designers argue in a lengthy FastCo piece that Apple has abandoned many of its original human interface design principles in both OS X and iOS, and a switch to an alphabetic rather than hierarchical list seemingly puts aesthetics above all else.

Don Norman and Bruce Tognazzini say that five of “the most important principles” are now “largely or completely missing in iOS”:

  • discoverability – having all possible actions be visible
  • feedback & feedforward – making it obvious what a function will do, and what it has done
  • recovery – the ability to undo a mistake, or get back to where you were before
  • consistency – using the same gestures across platforms and hardware
  • encouraging growth – helping people tackle more complex tasks when they’ve mastered the basics

Norman and Tognazzini also say that Apple violates many of Dieter Rams’ design principles, a German designer who Steve Jobs has said greatly influenced his own thinking. They say that Apple prioritizes Rams’ 10th principle – “good design is as little design as possible” – over the other nine.

I’d note that iOS 9 tackles one of their criticisms, offering an easy ‘Back to’ function when a link has taken you out of the app you were using, but it’s an interesting read.

Apple to be first company in Singapore to power all operations from solar energy as first Apple Store confirmed

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Apple has announced that it will power all of its operations in Singapore from solar energy, the first company in the city-state to do so. The scheme will also provide electricity to around 9,000 public-owned homes.

CNET reports that Apple is partnering with local clean energy provide Sunseap.

The Cupertino consumer electronics giant has partnered with Singapore’s largest clean energy provider, Sunseap Group, who will provide power to Apple’s 2,500-person corporate campus and retail store. Energy will be obtained from solar panels laid on the rooftops of 800 buildings.

Retail head Angela Ahrendts also confirmed to The Strait Times earlier reports that it is opening its first Apple Store in Singapore, with hiring underway …


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Tim Cook again rules out converged Mac and iPad, says a single device would be too compromised

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Apple CEO Tim Cook has ruled out the possibility of Apple merging iOS and OS X to create a single category of device. Speaking to the Irish Independent, Cook said that such a device would be too compromised.

“We feel strongly that customers are not really looking for a converged Mac and iPad,” said Cook. “Because what that would wind up doing, or what we’re worried would happen, is that neither experience would be as good as the customer wants. So we want to make the best tablet in the world and the best Mac in the world. And putting those two together would not achieve either. You’d begin to compromise in different ways.”

He said that some were reading too much into the way Apple has brought the two platforms closer together …

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Apple considering using iMessage for its person-to-person Apple Pay service – report

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Quartz report citing banking sources says that Apple is considering the use of iMessage to handle its expected person-to-person service to complement Apple Pay.

One way Apple might add money transfer services to iOS is through iMessage, the proprietary messaging service, according to people who have discussed the program with Apple. It’s already one of the most used default apps on iPhones and is especially popular with the younger crowd.

Apple is reported to be in talks with banks to agree terms for the service. It’s believed that Apple wants banks to act as the payment processors so that it can steer clear of the murky world of financial regulation, leaving it to do what it does best: the front-end.

iMessage already uses strong end-to-end encryption, something that has led to disputes between Apple and various governments.

Apple’s own design team always used paper, now starting to use the iPad Pro & Apple Pencil, says Jony Ive

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Apple’s design chief Jony Ive told the Telegraph that while his own team has worked using paper sketchbooks for more than 20 years, they are for the first time starting to use the iPad Pro and Apple Pencil instead.

Many of us in the design team have worked together for 20 plus years. We’ve always drawn in our sketchbooks, and for the first time – despite flirting with some alternatives a couple of years ago – I’m seeing people starting to use the iPad and Apple Pencil. Our personal experience has been that there are definitely affordances and opportunities now that you have a much more natural and intuitive environment to make marks, there are clearly things you can do sketching and writing on the iPad which you could never dream of doing in the analogue world.

He said that while he’d started off demonstrating it, he’d then found himself using it for his work … 
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Apple bringing 1,000 new jobs to Ireland, where Tim Cook describes Microsoft’s Surface Book as “deluded” [Updated]

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Update: Apple has since stated that Cook intended to describe the Microsoft Surface Book as “diluted” rather than “deluded.”

The Irish government has announced that Apple will be employing an additional 1,000 staff in Ireland, the country where the company declares much of its revenue from sales throughout Europe, reports Reuters.

Ireland’s main foreign investment agency, the IDA, said Apple was to add 1,000 jobs to its office in Cork by mid-2017 from 5,000 at present. It said the company had also added 1,000 jobs in the past year.

There had been some concern about whether Apple would maintain a significant presence in the country if the European Commission investigation into Apple’s tax dealings in the country went against the company … 
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Apple’s ‘car front’ recently attended a global car body conference

tesla bodyAlthough Apple has yet to confirm the existence of “Project Titan,” it seems like every week brings a new clue that the company is indeed working on an electric car. We learned that Sixty Eight Research, a sketchy firm widely believe to be a front for Apple’s effort in the automotive business, recently attended the 17th Global Car Body Benchmarking Conference in Germany.
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MacMall already has iPad Pros on sale with modest $12 savings, tax advantages, Paypal processing and free shipping

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From 9to5Toys.com:

iPads officially go on sale next week and AppleCare training started today but Apple reseller MacMall is the first US retailer advertising offering the iPad Pro and they’ve already marked prices down modestly $12/SKU.   MacMall, unlike Apple, takes Paypal and only collects sales tax in CA, NY, IL, WI, MN, CO, TN, NC and GA which can save a significant bit of change.

Description MfrPN MSRP MacMall Price Savings
IPAD PRO WI-FI 32GB SPACE GRAY-USA ML0F2LL/A $799.00 $787.00 $12.00
IPAD PRO WI-FI 32GB SILVER-USA ML0G2LL/A $799.00 $787.00 $12.00
IPAD PRO WI-FI 32GB GOLD-USA ML0H2LL/A $799.00 $787.00 $12.00
IPAD PRO WI-FI 128GB SPACE GRAY-USA ML0N2LL/A $949.00 $937.00 $12.00
IPAD PRO WI-FI 128GB SILVER-USA ML0Q2LL/A $949.00 $937.00 $12.00
IPAD PRO WI-FI 128GB GOLD-USA ML0R2LL/A $949.00 $937.00 $12.00
IPAD PRO WI-FI CELL 128GB GRAY AS-USA ML3K2LL/A $1,079.00 $1,067.00 $12.00
IPAD PRO WI-FI CELL 128GB SLVR AS-USA ML3N2LL/A $1,079.00 $1,067.00 $12.00
IPAD PRO WI-FI CELL 128GB GOLD AS-USA ML3Q2LL/A $1,079.00 $1,067.00 $12.00

Note: All iPad Pros aren’t currently in stock but most ship immediately- 3 days

Apple has been showing off the iPad Pro for Education at the Dropbox conference and at Disney/Pixar and we expect reviews shortly. Apps like ProCreate, iTunes U and Adobe’s Photoshop have already been updated to work with the 12.9-inch tablet.

Opinion: Five hardware lessons Apple could learn from Android manufacturers for the iPhone 7

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I know, it’s almost a blasphemous headline, and I can feel the comments system bracing itself for impact even before anyone has read a word of my arguments. Especially as Apple has engaged in lengthy lawsuits against Samsung for copying its own features.

But while Apple doesn’t blindly copy, it does learn from other companies, and it does so all the time. Indeed, you could say it’s one of the key things that sets Apple apart in the tech world: it doesn’t scrabble to be first to market with new technology. Apple instead sits back and watches, looks at what other companies do and then figures out how to create a better version.

Touch ID is a classic example. Fingerprint readers have been around forever in laptops, and Motorola put one into a smartphone – the Atrix – way back in 2011. But early fingerprint readers were inconvenient, requiring you to scroll your finger across them, and unreliable. Apple waited until it could do the job properly.

So what are some of the things Android manufacturers have done that I think Apple could usefully learn from … ? 
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Growing reports of Touch ID unlocks being slow or unreliable in iOS 9.1

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There have been an increasing number of reports from iPhone users running iOS 9.1 that Touch ID is proving slow or unreliable. The issue was first spotted by Forbes earlier this week.

The complaints are similar: users running iOS 9.1 find Touch ID either refuses to recognise a user’s fingerprint, has become highly unreliable or doesn’t even register a fingerprint pressed against it. Users have tried hard resets (holding in the power and home button for 10 seconds) and complete factory resets without any success.

The issue appears to be affecting a small minority of users, but enough to suggest that it is more than coincidence …

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Apple opens subsidiary company for direct distribution in its fastest-growing iPhone market

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Apple has opened a subsidiary company in Vietnam, its fastest-growing iPhone market, reports Reuters.

Apple Vietnam Limited Liability was established on Oct. 28 with a registered capital of 15 billion dong ($672,194), according to a news announcement recorded on Vietnam’s national business registry website.

The company will ‘conduct wholesale business,’ read: directly import and distribute iPhones within the country. Apple tripled its sales in Vietnam in the first half of last year – a higher growth rate than in either China or India, though of course among a far smaller population.

Photo: thousandwonders.net

Apple patent application published for one-touch ‘panic mode’ on iPhone to protect data or alert emergency services

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The USPTO has today published a patent application by Apple to allow a specific fingerprint to activate a ‘panic mode’ on an iPhone, designed for use when the owner feels threatened, is in danger or is being forced to unlock their phone.

In its most basic form, placing a specific finger on the Touch ID button would place the iPhone into a special locked-down mode, blocking access to personal data store on the phone – perhaps simulating a brand new phone. In that way, if a street robber forced you to unlock your phone before handing it over, your data would be safe.

But the patent application goes far beyond this … 
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A modified version of XcodeGhost remains a threat as compromised apps found in 210 enterprises

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Security firm FireEye said in a blog post that XcodeGhost – a fake version of Xcode that injected malware into genuine apps – remains a threat. FireEye has identified a more advanced version of the compromised app development tool, XcodeGhost S, which has been designed to infect iOS 9 apps and allow compromised apps to escape detection by Apple.

XcodeGhost is planted in different versions of Xcode, including Xcode 7 (released for iOS 9 development). In the latest version, which we call XcodeGhost S, features have been added to infect iOS 9 and bypass static detection.

We have worked with Apple to have all XcodeGhost and XcodeGhost samples we have detected removed from the App Store.

The company said that by monitoring its customers’ networks, it identified 210 enterprises with infected apps running inside their networks – a third of them in the USA – generating 28,000 attempts to connect to the XcodeGhost Command and Control (CnC) servers … 
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Wikipedia founder says Apple should stop selling iPhones in the UK if govt bans end-to-end encryption

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Wikipedia founder Jimmy Wales has tweeted that Apple should stop selling iPhones in the UK if the British government succeeds in passing a “stupid” new law completely banning end-to-end encryption. The tweet was reported by the Independent.

[tweet https://twitter.com/jimmy_wales/status/661604239794376704 align=’center’]

The Investigatory Powers Bill would require all Internet and technology companies to hand over to the government any communications data it requests. As things stand, Apple would be unable to comply with this requirement as it uses end-to-end encryption for services like iMessage and FaceTime.

As an illustration of the technological illiteracy of the government’s proposals, it originally wanted to ban encrypted communication altogether. It had to be pointed out to ministers that this would make Internet banking and online shopping illegal …

Apple has come under fire in the U.S. for its uncompromising stance on the privacy of customer data, with DOJ and FBI officials complaining that was Apple winning the PR battle. Apple lobbied Obama to reject similar proposals in the USA.

Photo: Apple Store in Regent Street, London (Foster & Partners)

iOS 9 adoption continues to outpace iOS 8, as it hits 66%

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iOS 9 continues to outstrip all previous versions of iOS in terms of pace of adoption. Apple has updated its developer site to show that 66% of all iOS devices are now running iOS 9, up from 61% less than a fortnight ago.

For comparison, iOS 8 had only hit 60% by the end of November last year, took until late December to get to 64% and January to reach 68%. The latest numbers also represent good news for the security of iOS devices … 
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Apple has a hidden ‘indoor GPS’ app in the App Store, for Apple Maps Connect [Updated]

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Apple has an Indoor Survey app on the iOS App Store, designed to help pinpoint locations inside a store, restaurant or other business – but it doesn’t show up in a search, and you need to register in Apple Maps Connect to download it.

By dropping “points” on a map within the Survey App, you indicate your position within the venue as you walk through. As you do so, the indoor Survey App measures the radio frequency (RF) signal data and combines it with an iPhone’s sensor data. The end result is indoor positioning without the need to install special hardware … 


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Apple plans to start selling the iPad Pro on November 11th

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Apple plans to start selling the 12.9-inch iPad Pro on Wednesday, November 11th via both its physical retail and online stores, according to multiple sources. Apple previously only said that the large tablet would become available during the month of November, a couple of months after the introduction in early September. The iPad Pro’s marquee accessories, the Apple Pencil and Smart Keyboard, will also become available for purchase on November 11th. The iPad Pro starts at $799 and comes in both 32GB and 128GB configurations with WiFi only. An LTE-compatible version comes exclusively in the 128GB configuration and costs upwards of $1000. We reported earlier this week that Apple’s support staff is scheduled to complete iPad Pro training by November 6th, less than a week prior to the launch.


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Apple’s artificial intelligence work is being hurt by its extreme secrecy, say AI academics

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Apple’s famed obsession with secrecy in its product development process is hampering its work in the field of artificial intelligence, say academics working in the field. Bloomberg reports that AI experts believe that lack of two-way sharing of information slows development.

“Apple is off the scale in terms of secrecy,” says Richard Zemel, a professor in the computer science department at the University of Toronto. “They’re completely out of the loop.”

Apple Maps was cited as an example of what can go wrong when AI teams within Apple are cut off from other work being done in the field – and even from researchers in other teams within Apple. Worse, it is claimed, the approach makes it impossible for Apple to recruit the brightest people in the field …


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Opinion: By the iPhone’s 10th anniversary, China will be Apple’s biggest market

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The old world was a simple one. Apple needed two things to succeed: a well-off market willing to pay a premium price for its products, and a low-cost manufacturing base to build them. The U.S. and Europe provided the former, China the latter.

The idea that China could become Apple’s biggest market in less than a decade would have seemed unimaginable back when the first iPhone went on sale in 2007. It now looks inevitable.

Let’s run the numbers … 
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Apple’s share of global smartphone market grows year-on-year at Samsung’s expense – Strategy Analytics, Counterpoint

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Two separate market share reports show that Apple increased its share of the global smartphone market year-on-year, with Samsung’s share declining. Strategy Analytics estimates that Apple grew its market share from 12.2% in Q3 2014 to 13.6% in Q3 2015, while Counterpoint has the numbers at 11.9% to 13.1% … 
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Patent troll goes after Apple & automakers over the use of watch apps to control cars

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A patent troll is currently suing Apple, Samsung and half the automotive industry – as well as other companies – over the use of a vague, decade old patent that covers operating certain functions of a vehicle, like starting the engine and locking/unlocking doors, through a “watch” – now known as a “smartwatch”.

Intellectual Capital Consulting (LCC), the plaintiff in the lawsuit (which we embed below), claims that the defendants are using patented technology in smartwatch products and software that they are selling or contributing to sell.
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