Apple

Smartphone duopoly, anyone? Source: Nielsen

There is no shortage of surveys proving that Apple’s smartphone market share has benefited from strong iPhone 4S reception thus far. A new report published this morning by reputable research firm Nielsen is another indication of Apple halting Android’s seemingly unstoppable rise as a growing number of United States consumers pick iPhones over other smartphones. Based on a poll of recent acquirers —among those who said they got a new device within the past three months— Nielsen found out that 44.5-percent chose an iPhone while 46.9-percent picked an Android phone. Contrast these figures to just 25.1-percent for Apple in October and 61.1-percent for Android.

Furthermore, 57 percent of new iPhone owners surveyed in December said they got an iPhone 4S. […] The high-profile launch of Apple’s iPhone 4S in the Fall had an enormous impact on the proportion of smartphone owners who chose an Apple iPhone.

Therefore, while fewer people bought an Android device in December compared to a month earlier, Apple substantially increased its share among recent smartphone acquirers. These findings are understandable given that iPhone 4S was announced on Oct. 4, 2011 and it became available 10 days later, selling 4 million units during the launch weekend. Pent-up demand and wider price gamut certainly did help boost domestic iPhone sales as did the fact that Sprint and local carriers Claro Puerto Rico and C Spire Wireless finally landed the device.

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Apple currently has only one other Apple Store in New York City outside of Manhattan that is located in Staten Island. Things could change, however, according to a new report from NY Daily News that clamed retail developer Yeheskel Elia is working with Apple to bring an “iconic store” to Queens, New York. The specific location of the store would be Austin Street in Forest Hills.

Nothing is official because Elia and Apple are still working on more details. Elia said he would do anything to bring an Apple Store to the bustling area. If a deal is reached, Elia said a store could open in under a year. Several months ago, an Apple broker also reached out to Elia regarding the new store.

The deal would be a “kick in the pants” to the neighboring rival Brooklyn who, with borough president Marty Markowitz and local hipster legions, has campaigned nonstop for an Apple Store for years.

When NY Daily News reached out for comment from Apple, in a typical fashion they responded, Apple has “made no announcements” regarding a NYC store outside of Manhattan (sorry Staten Island).

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Apple, effective today, ended its buy a Mac, get a $100 off of a printer promotion. The promotion typically runs yearly, so we are not sure why Apple stopped it. Apple sells a few $100 printers, so they typically advertise the promotion as “Buy a Mac, get a free printer.”

Although Apple is putting a stop to the program, they will continue to sell printers in their physical retail stores and online stores, according to the internal memo posted above. Customers who bought a printer within 90 days of Jan. 16 can still claim their $100 rebate from Apple.

Apple still has the rebate page up, below:

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Apple issued an email notice to developers today, informing them it has been able to resolve an issue with faulty code signing certificates. The company’s update on developer certificates reads as follows (hat tip to our reader Jan!):

We have identified and resolved a recent issue with certificates for iOS and Mac code signing, Apple Push Notifications and Safari Extensions. If you have experienced any problems with a certificate issued over the past 4 days, simply re-generate a new one.

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[vodpod id=Video.15968071&w=650&h=420&fv=autoPlay%3Dfalse]

Earlier this week, Apple pledged to let the Fair Labor Association access its suppliers’ facilities to monitor working conditions. Even though Apple is the first technology company admitted to the FLA, the snowballing issue of harsh conditions at Far East plants will not go away with the announcement. Quite the contrary, the problem has escalated and gone mainstream, with both The Daily Show and This American Life focusing on the grim reality of earning a living at Foxconn-operated sweatshops in China.

Jon Stewart, The Daily Show host and chief satirist, remarked in an episode yesterday:

By creating a convenient ecosystem, China’s Foxconn draws in employees who earn 31 cents an hour working for 35 hours straight, thereby saving American companies money.

As you know, Foxconn (also known as Hon Hai Precision Industry) is Apple’s favorite contract manufacturer, it but also produces gadgets for Amazon, Microsoft, HP, Dell and a variety of other brands. With that said, both shows tackle larger issues that affect just about every electronics manufacturer. The last week’s episode of This American Life, the popular radio program, weighed in as well. You can listen to their free audio stream here.

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The easiest way to upgrade your Mac Pro’s everyday performance is to replace its slow internal hard drive units with pricier and much speedier solid-state storage (SSD), as it typically provides many times faster access times compared to HDDs and way greater sustained transfer rates. The problem is, you can only put flash storage inside the Pro’s hard drive bays that connect to the SATA interface.

Unfortunately, your super-fast SSD is limited to transfer rates of the Mac Pro’s SATA controller.

Enter OWC’s upcoming PCI Express-based SSD solution for Mac Pros, due for release “in the very near future.” Why does it matter? Well, for starters, it is a dream come true for the Hackintosh community. However, there is more to it than meets the eye…

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Fortune Senior Editor-at-large Adam Lashinsky’s upcoming book about Apple’s inner workings titled “Inside Apple: How America’s Most Admired and Secretive Company Really Works” is bound to become controversial. Unlike Steve Jobs’ authorized biographer Walter Isaacson, Lashinsky did not have direct access to Apple’s leadership team, employees nor did he have Jobs’ cooperation. Nevertheless, the author has deep connections so his book draws from this expertise, focusing on Apple’s former CEO Steve Jobs, current CEO Tim Cook, design chief Jonathan Ive and head of iOS software Scott Forstall (pictured on the right). The young executive (43) has managed to accumulate power, and he now wields tremendous influence at Apple due to his iOS division contributing to as much as 70 percent of Apple’s total revenues. As such, Forstall is seen as Apple’s next CEO once Tim Cook steps down, which probably will not happen until 2021 if he is to vest his 1 million stock shares awarded last August. Here is how one source described Forstall in Lashinsky’s upcoming book, according to Fortune’s Philip Elmer-DeWitt:

He’s a sharp, down-to-earth, and talented engineer, and a more-than-decent presenter. He’s the total package.

Lashinsky conceded and explained:

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Source: IDG

Research firm IDG on Monday published a new survey called “iPad for Business 2012,” showing that the iPad is anything but a fad as far as big business is concerned. The global survey, available as a downloadable PDF document, noted that 91 percent of businesses that deployed iPads are using the device primarily for work, even if only approximately a quarter of issued devices were supplied as a corporate tool. Consumers and pros alike both use the device for media consumption, which in the case of the latter is predominantly text-based and work-related.

IT and business professionals certainly use their iPads at home. But unlike most consumers, they also use their devices in a similarly intensive way at work. In a further, decisive, break with consumer usage patterns, IT and business professionals use their devices on the road far more frequently than anywhere else.

Some 79 percent of IT professionals “always” use the iPads on the move and 59 percent “always” or “sometimes” use the device in offline mode. Road use usually entails planes, trains, automobiles, hotel lobbies, coffee shops, conference halls and meeting rooms, IDG noted, even though only 40 percent of iPads sold incorporate 3G connectivity.

More than three-quarters of polled workers use the iPads to browse the web, and 76 percent of pros said they “always” use iPads to read content. Meanwhile, 73 percent opted for news consumption and more than half— or 54 percent— use it for work communication. Some 79 percent tap into the iPad on the move and 54 percent use it at home. Social media, personal communication and entertainment follow with 44 percent, 42 percent and 31 percent, respectively.

Corporate iPads rarely supplant notebooks, though:

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Counting tablet PCs as personal computers, Apple is about to overtake Hewlett-Packard and become the world’s top personal computer vendor. All should be known soon when Apple reveals holiday quarter earnings in a conference call with analysts scheduled for Tuesday, Jan. 24.

HP CEO Meg Whitman was first to admit that such a turn of event neither would nor be entirely unsurprising given Apple’s lead in the post-PC world. Whitman said back in November, “It’s possible if you integrate tablets.” Fortune’s Philip Elmer-DeWitt wrote that, based on a poll of 42 analysts, iPad sales could hit the 14 million mark, a notable increase over the 11.12 million iPads sold during the September quarter.

Fortune’s estimates range from 11.7 million (Hendi Susanto of Gabelli & Co) to 19.47 million iPads (Alexis Cabot of the Apple Finance Board). According to research firm Gartner, HP shipped 14.7 million PCs in the last quarter, down 16 percent from a year ago.

Now, Apple in this last quarter cleared 4.89 million Macs, and its holiday sales are estimated to exceed 5 million units. Combined, iPad and Mac will have sold over 20 million units during the holiday quarter, enough to give the Cupertino, Calif.-based technology powerhouse a few million units lead over HP, the world’s leading computer vendor.

Estimated unit sales translate into a 17.6-percent market share for Apple versus 13 percent for HP, representing a landmark achievement by any measure. Again, that’s assuming tablets are counted as personal computers. As noted by Asymco’s Horace Dediu, Apple has never held the top spot. Its Apple II system peaked at 15.8 -percent share in 1984 and the Mac peaked at 12 percent in 1992. Interesting that Lenovo CEO praised Apple last week, saying about Android on tablets that “We still need to learn something, we still need to improve something”.

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UPDATE [Wednesday, January 18, 2012 at 7:35am ET]: Steve Wozniak commented on the original article on Facebook, saying he’s been misinterpreted (again). His full comment can be found at the bottom of this article.

Journalist Dan Lyons (aka Fake Steve Jobs) filed a report with The Daily Beast on Saturday that highlights Steve Wozniak’s thoughts on the iPhone 4S’s widely reported battery woes (that did not go away with iOS 5.1 Beta 3):

With the iPhone, something happened with the new OS or the new phone, and it just started running through the battery so fast. I’ve had a lot of issues with things I have to turn off just to save the battery life.

Wozniak, 61, who cofounded Apple with Jobs in 1976, also has gripes with Siri. The engineer thinks Siri is cool, but at times impractical compared to Android’s voice action. This is mostly due to Siri’s architectural reliance on network connectivity that is required to complete functions.

I have a lower success rate with Siri than I do with the voice built into the Android, and that bothers me. I’ll be saying, over and over again in my car, ‘Call the Lark Creek Steak House,’ and I can’t get it done. Then I pick up my Android, say the same thing, and it’s done. […] On the 4S I can only do that when Siri can connect over the Internet. But many times it can’t connect. I’ve never had Android come back and say, ‘I can’t connect over the Internet. […] Plus I get navigation. Android is way ahead on that.

Apple is thought to be creating its own navigation and mapping solution stemming from the company’s three mapping-related acquisitions: C3 Technologies, Poly9 in 2010, and Placebase. Wozniak is also good friends with Andy Rubin who heads the Android project and one said, “There’s more available [on Android] in some ways.”

Although Apple did not detail Siri, its voice recognition and artificial intelligence systems run on Apple’s servers rather than the phone itself. Siri may also infringe old Excite patents, said to be changing hands soon as a valuable asset in order to compete with Siri. In case you are wondering, the iPhone remains Wozniak’s primary phone. He loves “the beauty of it,” and he is first to recommend it to friends. However, Wozniak sometimes wants the iPhone to do “all the things my Android does.”

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Bloomberg reported that the iPad 3 entered production and is tracking a March launch. The report also claimed the new iPad will feature a higher-resolution display, Retina probably, and a quad-core processor. It will also connect to LTE networks.

The company’s manufacturing partners in Asia started ramping up production of the iPad 3 this month and plan to reach full volumes by February, said one of the people, who asked not to be named because the details aren’t public. The tablet will use a quad-core chip, an enhancement that lets users jump more quickly between applications, two of the people said.

Apple expanded its recycling program in the United States in August to give customers an opportunity to —well— recycle their used iPhones and iPads for Apple gift cards, and now the technology giant is extending the program  even further by launching a similar initiative in the United Kingdom, Germany and France.

According to its German website (Google translation),  Apple will not offer payment in the form of an Apple gift card, but rather as cash deposited into customers bank accounts in exchange for returned devices. Macworld UK  and Macerkopf.de (Google translation) confirmed that these same rules apply for the programs in France and the U.K.

“With the Reuse and Recycling Programme, you could turn your old equipment into a brand-new Mac, iPod, iPhone or iPad,” announced Apple. “Whether it’s an iPhone, iPad, Mac or PC computer, working or not, we’ll take it and determine if it qualifies for reuse and has a monetary value. If it does, the amount will be credited directly into your bank account. If it doesn’t, you can recycle it responsibly through one of our free recycling programs.”

The recycling program is made possible through a partnership with Dataserv, and the  green measure contributes to Apple’s existing programs —as noted by its website— for recycling Macs, PCs, iPods, mobile phones, and batteries…

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Apple just posted its 2012 Supplier Responsibility Report highlighting its efforts to audit and improve working conditions within its supply chain. As part of the report, Apple also posted a list of 156 companies currently supplying components for Apple products that make up over 97 percent of all “procurement expenditures for materials, manufacturing, and assembly” of its entire product line globally.

The list includes Toshiba Mobile display, which is —as far as we know—currently not supplying displays for Apple. There were rumors in May that claimed Toshiba was working on a 4-inch retina display and rumors last month that Apple and Toshiba are building a plant for display production, which were later debunked by the increasingly unreliable DigiTimes. It also includes Sharp, who was recently rumored to be ruled out of iPad 3-panel production due to quality concerns but also supplies other components to Apple. The full list is available after the break.

In 2011, we conducted 229 audits throughout our supply chain — an 80 percent increase over 2010 — including more than 100 first-time audits. We continue to expand our program to reach deeper into our supply base, and this year we added more detailed and specialized audits that focus on safety and the environment.

Every year Apple audits suppliers in eight areas including: Anti-discrimination, Fair treatment, Prevention of involuntary labor, Prevention of underage labor, Juvenile worker protections, Working hours, Wages and benefits, and Freedom of association. The overall results can be seen in the graphic below. We also learned than Apple found 42 facilities delayed wages, 68 facilities did not provide proper benefits, and 67 facilities held back payments as punishment.

There were also 108 facilities failing to pay legal requirements for overtime and holiday pay, and 5 facilities with 6 active cases of underage labor, to which Apple is requiring the suppliers “support the young workers’ return to school and to improve its management systems.”

In the audits, Apple found 93 facilities currently have more than 50 percent of its staff exceeding the maximum 60 hour workweek (with one day of rest per 7 days) set by Apple’s Code of Conduct for suppliers:

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Yesterday’s eagerly awaited iPhone 4S launch in China quickly turned into chaos as an ugly brawl between gangs of professional scalpers grew out of control. Beijing SWAT teams intervened to calm down hundreds of angry customers and tame the rowdy lines. The New York Times explained that scalpers hired migrant workers to stand in the line and buy the phone. As Apple said it would not open the store, those individuals, identifiable by matching armbands or hats, got angry because they were not going to be paid.

An Apple spokeswoman issued the  following statement following the incident (via Reuters):

Unfortunately, we were unable to open our store at Sanlitun due to the large crowd. And to ensure the safety of our customers and our employees, iPhones will not be available in our retails stores in Beijing and Shanghai for the time being.

Instead, Apple noted, customers could order the iPhone 4S on the online Apple store or through one of the many China Unicom retail outlets, the country’s exclusive iPhone carrier. However, the iconic smartphone was out of stock on the Chinese online Apple Store at the time of this writing.

As you know, Apple rarely goes on the record unless absolutely necessary, so the statement is an indication of how the launch spiraled out of control. Moreover, the egg-throwing incident inspired funny remarks on Twitter. Really, who goes to buy a new iPhone with a pocket full of eggs? Let’s just hope this situation won’t snowball into a public relations nightmare and become a theme for another anti-Apple advert by Samsung.

In the meantime, one analyst pointed out that Apple must learn from this turmoil and consider launching its products in China and United States simultaneously. Another incredible riot clip, egg throwing video and additional tidbits are displayed after the break.

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Photo courtesy of BBC

John Sculley, former vice-president and president of PepsiCo and CEO of Apple between 1983 and 1993, is adamant that Apple —not incumbents such as Samsung— is poised to change the first principles of the television experience. Sculley also confessed in an interview with BBC that has not read Walter Isaacson’s authorized biography of Apple’s late cofounder and CEO. Nevertheless, the executive turned investor underscored Apple’s history of past industry disruptions while opining that the television industry is about to experience Apple’s magic touch:

I think that Apple has revolutionized every other consumer industry, why not television? I think that televisions are unnecessarily complex. The irony is that as the pictures get better and the choice of content gets broader, that the complexity of the experience of using the television gets more and more complicated. So it seems exactly the sort of problem that if anyone is going to change the experience of what the first principles are, it is going to be Apple.

Sculely, 72, is a Silicon Valley investor nowadays, and dispelled some “myths” about his tense relationship with Apple’s cofounder. He said he did not fire Jobs, insisting they had “a terrific relationship when things were going well.” Heck, even Rupert Murdoch is commenting about Apple television, writing on Twitter this morning: “All talk is about coming Apple TV. Plenty of apprehension, no firm facts but eyes on their enormous cash pile”.

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[youtube=”http://www.youtube.com/watch?v=pEgO_iJKDGE&feature=player_embedded”]

Breaking out of Beijing right now: The flagship Apple Store cancelled selling the iPhone 4S after a fight broke out between scalpers (via Mic Gadget). Beijing’s SWAT team is on the scene right now to help tame the rowdy lines. Bloomberg said the angry crowd eager to get the iPhone 4S is pelting the store with eggs.

The Store was set to open at 7 a.m. local time to begin selling the iPhone 4S on China’s second largest carrier China Unicom. We showed you the large lines earlier today as customers gathered. What most people do not know, however, is that the majority of the people in line are scalpers looking sell the devices on the street. Scalpers reportedly started the fight in Beijing, according to MIC Gadget:

There are over thousands of people at the scene and seems like 99% of them are scalpers, according to local media reports. And according to our tipster, the scalpers are well organized, and they are divided into hundreds of teams, just like military forces. Each team includes 10-20 scalpers. Some of them even threw eggs at the glass door of the Apple store, while others threatened to assault the police.

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Intel is looking to use its recently unveiled Medfield chips in the iPhone, according to The Telegraph. In the report, Dave Whalen, vice president of Intel’s architecture group, told The Telegraph that Intel has talked to Apple and other manufacturers about using the new Medfield chips in iOS devices. Specifically, Whalen said as iOS continues to grow, “We talk to everybody.” Intel is also looking to Android and Windows Phone to use the new chips.

It is worth noting that it is highly unlikely Apple would move to Intel chips in iOS devices, even though the company uses Intel in Macs. Since the iPhone 4, Apple has continued to use its own line of processors—with the help of Samsung. The iPhone 4 was graced with the A4, the iPad 2 had the A5, and most recently— the iPhone 4S got the A5. The iPad 3 is rumored to get the quad-core A6 (mock up on the right), and going off Apple’s recent timeline, the iPhone 5 will most likely have the A6.

[youtube=http://www.youtube.com/watch?v=MsMeo_7wBSs]

When Steve Jobs told his biographer Walter Isaacson that he finally “cracked the code” to building an integrated television set that is user-friendly and seamlessly syncs with all of your devices, Samsung Australia’s Director of Audiovisual Philip Newton told the Sydney Morning Herald that Jobs’ was talking about connectivity.

He laughed off the mythical iTV and dissed Jobs’ TV brain wave as “nothing new,” saying the future is now and it is his company’s Smart TVs:

When Steve Jobs talked about he’s ‘cracked it’, he’s talking about connectivity – so we’ve had that in the market already for 12 months, it’s nothing new, it was new for them because they didn’t play in the space. It’s old news as far as the traditional players are concerned and we have broadened that with things like voice control and touch control; the remote control for these TVs has a touch pad.

Samsung is promoting Smart TVs left and right at the CES show that is underway this week in Las Vegas. The company is showing off apps and games such as Angry Birds running smoothly on Smart TVs. Feature-wise, Samsung Smart TVs are beating Google TVs to the punch with capabilities such as voice interaction, facial recognition, integrated camera controls for multi-video conferencing and multitasking.

Sony, Panasonic and LG are also pushing integrated television sets built around the Smart TV platform. While not officially an exhibitor, Apple reportedly dispatched 250 employees to attend the show and monitor what competition is doing; among them is the head of iOS product marketing Greg Joswiak. Apple has been rumored for months to launch 32- and 37-inch television sets in the summer of 2012. Does Samsung see Apple as a threat?

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Retailer Target will soon start offering Apple products in select discount stores that carry everything from dog food to electronics.

Reuters reported that Minnesota-headquartered retailer Target confirmed plans to dedicate a special section to Apple products within 25 of its discount stores across the United States:

Target also confirmed during a presentation on Thursday that it will have 25 stores featuring special displays of Apple Inc (AAPL.O) merchandise, a move that had been speculated about last week.

The move is part of a broad initiative to provide upscale shopping experience for high-end brands. Select Target stores have been carrying iPhones, iPods and iPads and selling accessories for a while now, but not Mac systems. By promoting in boutiques stores-within-a-store, Apple’s mobile and desktop products should be able to stand out from the rest of Target’s low-end offerings. Thus far, Apple ministores could be found at select Best Buy stores.

As you know, both the Target Corporation and Apple drew from the expertise of a merchandising wizard who made beautiful design a natural part of the shopping experience…

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iTunes had long been the only kid in town as Apple-imposed rules of the game prohibited third-party storefronts of any kind on iOS devices. Bowing to government regulators, Apple last year relaxed its strict policy pertaining to third-party stores and enabled subscriptions. This paved the way for music apps from Spotify and Shazam that have recently become available on the iOS platform. Now, another major subscription-based music service is about to hit the App Store.

According to reports, consumer electronics giant Sony is bringing its Music Unlimited service to owners of Apple’s mobile devices. For either $4 or $10 a month, Music Unlimited subscribers will be able to stream music onto their iPads, iPhones and iPod touches sometime this quarter. The first tier gets you the ability to stream music from your own personal library and the other enables unlimited streaming from Sony’s catalog of 15 million songs. Similar to Spotify, you will be able to cache songs and playlists when offline.

Sony’s logic behind this move reflects Apple’s approach…

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I had a chance to meet with Samsung Storage solutions at CES 2012 this week and got the low down on its new OEM SSDs that Apple tends to buy in large numbers.  Samsung and Toshiba are the OEMs that provide the SSDs in MacBook Airs.  Samsung’s 470 OEM SSD product is noticeably faster than the Toshiba model that Apple also puts in otherwise identical MacBook Airs.  We have talked about the speed difference before and how Air-buyers often will pay a premium for the faster Samsung drives.

Well, the speed difference is about to get even more noticeable. Samsung told me that it sold out of the 470 series OEM SSDs late last year and the company only makes a much faster variety: the 830 series.

How fast is the 830 Series controller/chips?  I had a chance to speed test the popular 2.5-inch 830 model late last year when it debuted.  Typical speeds were over 400MB/s write and 500MB/s reads (below, left).  That is almost twice as fast as the current MacBook Air SSD from Samsung (below, right), which itself is significantly faster than Toshiba’s SSD.

Samsung stopped short of announcing it is shipping the 830s to Apple, but the company confirmed it ran out of 470s a while ago and all of its SSD customers were receiving the updated 830 series. Samsung also confirmed that Apple is still a customer.

Today I ventured to the Las Vegas Apple Store to check the speeds of the MacBook Airs.  I checked a new 128GB MacBook Air right out of the box which had the same “APPLE SSD SM128C” listed in System Profiler as my year-old Air.  I checked the speed and it is indeed the old disk (same as above, right), which means the new Samsung SSDs haven not hit stores —at least here anyway.

Theoretically, a few things could happen at this point…

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