Pegatron CEO says Bloomberg reporter made up report of ‘falling iPad mini demand’

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Yesterday we decided not to run with a story published by Bloomberg that Pegatron’s forecasted 25 percent to 30 percent drop for second-quarter revenue was due to “falling iPad mini demand.” It seemed a little far fetched that an Apple supplier would be giving up specific information on product demand, something we know suppliers in Apple’s circle typically remain tight-lipped on. Today CEO of Pegatron Jason Cheng has confirmed our suspicions in an email to Fortune claiming that Bloomberg reporter Tim Culpan made the iPad mini angle up.

While quoting an analyst’s expectations for iPad mini demand in Q2, Bloomberg’s Tim Culpan offered the following quote from Pegatron Chief Executive Officer Jason Cheng as proof:

A decline in revenue from the iPad Mini “is more on demand, while price has been stable. Not just tablets, also e-books and games consoles, almost every item is moving in a negative direction.”

Pegatron chief Jason Cheng says he wasn’t referring to iPad mini specifically, but rather all of its products including all tablets and game consoles, while noting that “clearly refused” to answer Culpan’s questions related to specific products. Here’s what he had to say about the Bloomberg piece: Read more

Bloomberg: Jony Ive’s new software design role could lead to delays for iOS 7

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Not much news coming out of a new Bloomberg piece today on Sir Jonathan Ive’s new software design role. Earlier this week, 9to5Mac first reported on some big upcoming changes to iOS spearheaded by Ive based on multiple sources who have seen or been briefed on the new “flatter” OS. While echoing most of what we already reported, Bloomberg adds that Ive’s new role will provide potential delays for iOS 7:

The introduction of new features, along with an emphasis on cooperation and deliberation, comes at a cost for Cupertino, California-based Apple. Engineers are racing to finish iOS 7, the next version of the mobile software, in time for a June preview at Apple’s annual Worldwide Developers Conference. While the company still expects to release iOS 7 on time as soon as September, internal deadlines for submitting features for testing are being set later than past releases, people said… Bigger shifts, to such features as e-mail, may not even be ready this year and may be introduced in future releases, people said.

The report from Bloomberg doesn’t go into specific details about features which it claims “remain secret”, but earlier this week 9to5Mac shared details of other new features planned for iOS 7 including further Maps and Siri integration in vehicles. Apple is also toying with additional features that could possibly make their way to iOS 7, including new “glance-able” information and settings panels, such as the ability to access new panels via swipes from the left and right side of an iOS device’s display.

Bloomberg adds that Ive has met with companies behind gesture control technology that sounds similar to the Leap Motion controller. The report also noted that Ive led a two-hour town hall meeting in March to discuss upcoming changes, while pointing out that he now regularly attends meetings with Greg Christie and the software design team and has provided them with “an earlier look at what future hardware products will look like” Read more

Ferrari in talks with Apple to broaden in-car entertainment partnership, unveils iPad mini equipped FF coupe

As Ferrari unveils its new 1 million euro “LaFerrari” hybrid, the company has also confirmed it plans to strengthen its partnership with Apple in the months to come. According to Bloomberg, Ferrari Chairman Luca Cordero Di Montezemolo said the company is now “in talks with Apple about broadening a partnership on in-car entertainment.”

Ferrari SpA, the luxury carmaker owned by Fiat SpA (F), will be “more precise” about its partnership with Apple (AAPL) Inc. in the next few months, Chairman Luca Cordero Di Montezemolo said.

Ferrari, which today unveiled the 1 million euro hybrid model “LaFerrari,” is in talks with Apple about broadening a partnership on in-car entertainment, Di Montezemolo said today at the Geneva motor show.

Ferrari also said today that its new four seater FF coupe will come equipped with iPad minis:

The FF is also now seamlessly integrated with Apple technologies, thanks to direct access to the infotainment system via SIRI voice commands and the adoption of two iPad Minis as the entertainment system of choice for the rear seat passengers.

Ferrari announced in November 2012 that Apple Senior Vice President Internet Software and Services Eddy Cue was joining its board of directors. Cue tweeted about the launch of the new LaFerrari mode today, saying, “Ferrari does it once again… it is stunning.”

The full video of Di Montezemolo speaking at the Geneva motor show is below.
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Bloomberg: Apple to release its iWatch within 9 months

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Bloomberg reported earlier this year that Apple had a team of over 100 product designers working on a wristwatch-like device. At the time, we noted that all the recent rumors and intel surrounding the iWatch seemed like the lead up to an impending product launch. Bloomberg is out with a new report today, claiming Apple will indeed launch its watch product in 2013:

Apple seeks to introduce the device as soon as this year, this person said. Apple has filed at least 79 patent applications that include the word “wrist,” including one for a device with a flexible screen, powered by kinetic energy… The watch business is experiencing a renaissance reminiscent of the cell phone industry before the iPhone.

The report added information about some of the potential features of the device that we had also heard of previously, including the ability to receive incoming calls, view maps, and record health data via various sensors:

Features under consideration include letting users make calls, see the identity of incoming callers and check map coordinates, said one of the people, who asked not to be identified because the plans aren’t public. It would also house a pedometer for counting steps and sensors for monitoring health-related data, such as heart rates, this person said.

Citigroup Inc. analyst Oliver Chen estimated Apple could generate $6 billion of the approximately $60 million in sales he expects the global watch industry to bring in during 2013. As pointed out by Bloomberg, gross margins are roughly four times bigger than TVs, which would only bring about $1.79 billion in gross profit for the company compared to $3.6 billion for watches.

Former creative director at Nike Scott Wilson told Bloomberg that Apple’s Jonathan Ive “has long had an interest in watches.” Read more

CACI neutering thousands of iPads for use in government

iFixit-iPad-4According to a report from Bloomberg, Arlington, Va.-based CACI International Inc., is working with Apple to secure thousands of iPads for use in U.S. government agencies. CACI Chief Executive Officer Dan Allen referred to the modified devices as “neutered iPads” and hinted the company is working to implement security features related to wireless connectivity and the camera. CACI specializes in providing IT solutions to government, although it didn’t state how exactly the iPads are being secured, but it did note that it’s a hardware solution and not software:

“It’s a neutered iPad,” Allen said today during a meeting with Bloomberg Government reporters and editors. “We’re working on how do we effectively brand it.”

The move comes as iPad and other iOS devices continue to be adopted by government agencies. In October, documents revealed the U.S. Department of Defense planned to deploy at least 162,500 devices partially made up of iOS devices, while a number of other U.S. agencies also switched from BlackBerry to iPhones over the last year. Read more

HTC fights ‘slide-to-unlock’ in London as Samsung continues patent war with Apple ahead of settlement talks

With court moderated settlement talks between Apple and Samsung executives set to take place within the next 90 days, Samsung has now filed a counterclaim in a California federal court alleging Apple’s iOS devices are infringing eight patents. The counterclaim is part of an original patent infringement lawsuit initiated by Apple in February. Foss Patents reported:

It comes as no surprise that Samsung retaliated with infringement claims. Samsung owns roughly 30,000 U.S. patents. It has from the outset of its dispute with Apple demonstrated its belief that a good offense is the best defense. So far, none of Samsung’s infringement claims against Apple has succeeded anywhere on Earth, despite efforts in nine different countries, but Samsung keeps on fighting.

Apple is also in the middle of patent infringement cases with HTC, which just told a court in London that its touchscreen devices, specifically its “slide-to-unlock” functionality, do not infringe on Apple’s patents. Bloomberg reported today that HTC’s lawyers described the functionality in question as “extremely simple implementations of commonly known techniques.” Apple’s lawyer Simon Thorley argued HTC is “attacking the validity of four patents” and claimed, “It is clear the inventions make the requisite contributions.”

If HTC is successful, it could have an impact in ongoing patent infringement related cases with Apple in Dutch and German courts. The report described the functionality Apple claims is covered in the patents:

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US government sues Apple in eBook price-fixing antitrust suit

Bloomberg is reporting that the United States has filed an antitrust lawsuit in a New York district court against Apple and publishers Hachette SA, HarperCollins, Macmillan, Penguin, and Simon & Schuster over alleged eBook price-fixing. The news follows reports from Reuters yesterday that the U.S. Department of Justice was preparing to launch a lawsuit against Apple and five major publishers accused of colluding to fix and increase the price of eBooks.

According to the report, all the parties named in the suit—except Macmillan, Penguin, and Apple— are willing to settle to avoid legal costs. The Department of Justice could announce “unspecified” settlements as early as today.

At the core of the settlement discussions is the agency model introduced with the iPad in 2010. The deal with publishers was described by Steve Jobs to biographer Walter Isaacson:

“We told the publishers, ‘We’ll go to the agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that’s what you want anyway…. They went to Amazon and said, ‘You’re going to sign an agency contract or we’re not going to give you the books.’ “

The model allows publishers to set their own prices as long as Apple gets a 30 percent cut and a guarantee that the same content is not offered lower elsewhere, but the Department of Justice is trying to return to Amazon’s wholesale model by giving retailers like Amazon control over pricing. Bloomberg explained: Read more

How much Apple CEO Tim Cook really made last year

Apple’s Chief Executive Officer Tim Cook was the highest-paid CEO in the United States during 2011, according to a report from The New York Times (via Bloomberg). The report cited data from research firm Equilar who tracked executive compensation throughout the year.

To take home the top spot, Cook received about $378 million. That number includes his salary, perks, and bonuses of $1.8 million in addition to a one-time stock grant of $376.2 million that vests in 2016 and 2021. The report noted that stat works out to roughly a million dollars a day. However, many are taking issue with the number, because the majority of the money requires Cook to stay with the company for 10 years before receiving it…

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Google CEO Larry Page says Steve Jobs’ fury over Android was just to rally troops

In a recent interview with Bloomberg Businessweek, Google’s Chief Executive Officer Larry Page talked at length about his new role as chief and his plans for the future of Android, Motorola, and the rest of the company. Much the interview revolved around Android and Google’s relationship with other companies, and Page was asked about his relationship with Steve Jobs toward the end. He was also asked about the state of Android tablets and his thoughts on Apple’s recently announced dividend.

When the interviewer mentioned Google and Jobs had their “differences” about Android, presumably referring to Jobs’ claims that Android is a “stolen product,” Page claimed Jobs’ anger toward Android/Google was “actually for show”:

I think the Android differences were actually for show. I had a relationship with Steve. I wouldn’t say I spent a lot of time with him over the years, but I saw him periodically. Curiously enough, actually, he requested that meeting. He sent me an e-mail and said: “Hey, you want to get together and chat?” I said, “Sure, I’ll come over.” And we had a very nice talk. We always did when we had a discussion generally… He was quite sick. I took it as an honor that he wanted to spend some time with me. I figured he wanted to spend time with his family at that point. He had a lot of interesting insights about how to run a company and that was pretty much what we discussed.

He continued when encouraged to elaborate on his “for show” comment:
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As supply meets demand, iPad Line workers get more days off, but are they happy?

With all the controversy surrounding Apple’s supply chains abroad, Foxconn, one of Apple’s biggest partners responsible for assembling the majority of its products, has received the brunt of criticisms. We already know what the Taipei-based assembler thought about Mike Daisey’s fabrications of working conditions at Foxconn plants, but today we get another first hand account from an actual Foxconn employee.

A report from China Business News (via MIC Gadget) profiled Foxconn worker and iPad assembler Wang Xiaoqiao (who opted to hide his real name). According to Wang, iPad line workers are beginning to work fewer hours and get more days off as supply meets demand. Wang said iPad production was ramped up in March, bringing assembly time from 10 hours a day down to 8 hours. However, he is not happy about working less. Wang explained:

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Apple’s court woes: AppleCare in Italy; Motorola, lawmakers grill iOS devs

As we reported earlier this month, Apple was set to appeal a $1.2 million fine imposed by Italian anti-trust authorities Autorità Garante della Concorrenza e del Mercato. The authorities argued Apple is misleading consumers by selling its one-year AppleCare warranties without informing customers of a two-year warranty mandatory by European Union law. Apple officially lost the appeal in court this week, which forced the company to pay the €900,00 fine and alter its AppleCare policies to properly inform consumers going forward. Apple can still appeal the decision, but consumer groups from 10 other countries are also requesting Apple change its policies—indicating this could soon be EU-wide. (via Repubblica.it)

Following the Path incident, a letter sent from lawmakers to Apple in February requested information on how the company collects personal data. The two congressional representatives behind the letter, Henry A. Waxman and G. K. Butterfield, sent letters to 34 app developers requesting similar information. One of the letters was sent to Tim Cook and Apple about the “Find My Friends” app. The letters are requesting that developers answer questions about their privacy policies and how they handle user data. In response to Path, Apple already confirmed, “Any app wishing to access contact data will require explicit user approval in a future software release.”

Earlier this month, we reported that U.S. Circuit Judge Richard A. Posner ruled in favor of Apple’s request to view documents related to the development of Android and the Google/Motorola acquisition. Apple claimed, “The Android/Motorola acquisition discovery is highly relevant to Apple’s claims and defenses.” According to Bloomberg, Apple told the courts last week that Motorola has yet to fulfill the original request, but Judge Posner denied Apple’s request this week and said, “Motorola’s objections are persuasive.” Two patent infringement-related trials between Apple and Motorola are set for June, and Posner warns Apple will have to “narrow its request to a manageable and particularized set of documents” for any future production of data requests.
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Consumer groups in 10 more EU countries seeking alterations to AppleCare

We reported several times about Italian anti-trust authorities fining Apple $1.2 million for “misleading consumers” in relation to AppleCare warranties. The decision made by the Autorità Garante della Concorrenza e del Mercato stated Apple’s 1-year AppleCare warranties were failing to inform consumers of a mandatory warranty of two years imposed by European Union law. Today we heard confirmation from Bloomberg that not just Italy, but consumer groups from 11 countries, requested that Apple make changes to its AppleCare policies and immediately halt its current “practices on the guarantees.”

Apple products say they come with a one-year warranty when European Union law requires manufacturers cover goods for two years, consumer groups in 11 countries, including Italy and Germany, said in an e-mailed statement today. The groups said they sent letters to national regulators seeking an immediate halt to Apple’s practices on the guarantees

The letter sent by consumer groups comes two days before Apple is set to appeal the $1.2 million fine imposed by Autorità Garante della Concorrenza e del Mercato on March 21. Apple already published the initial anti-trust decision on its website, but the group is asking Apple to also alter its warranty policies and publish a notice to consumers about the changes it made on Apple.com.
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