Tech Industry

Apple has been no stranger to environmental concerns regarding their manufacturing and supply chain abroad, most recently a report from five independent environmental organizations in China in August accused the company of taking “advantage of the loopholes in developing countries environmental management systems” and awarding contracts to known polluters. Yesterday Apple responded to the accusations in a three-hour meeting with five Chinese environmental NGOs, admitting fifteen of their current manufacturing partners are contributing to pollution in surrounding areas by agreeing to perform audits of the companies. This followed several meetings with Apple following the group’s report in August, including one with Apple execs in Cupertino.

According to a report from WSJ, Ma Jun, of the Institute of Public & Environmental Affairs in Beijing, had this to say following the meeting:

“This is a major step forward… They asked these companies to take corrective plans and give a timeline, and Apple will verify whether all these issues have been resolved.”

As a result of the meeting, Apple is apparently vowing to improve its environmental standards within its supply chain, a move that could not only alter the manufacturing process of components, but also impact contracts awarded to manufacturers and suppliers in the future. According to the report, to avoid issues like massive amounts of waste water, Apple will encourage alternative manufacturing processes for components such as printed circuit boards. Apple also confirmed that this and other environmental concerns will play a role when awarding future contracts to suppliers.

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Qualcomm has just issued a press release announcing the commercial availability of their Gobi 4000 chips for 4G LTE and HSPA+ capable devices, a variant of which could very well ship in a next-generation LTE-capable iPad. In August we discovered Apple had possibly begun field testing a next-gen LTE iPads with LTE code floating around the iOS builds, and it’s likely Apple would go with Qualcomm’s chip, as almost every 3G iOS device since the Verizon iPhone has used their Gobi platform, the exception being the the AT&T iPad which uses an older Infineon chip.

“The Gobi 4000 platform allows customers to offer both LTE/HSPA+ and LTE/EV-DO designs to meet the growing demand for embedded 3G/4G connectivity in mobile devices worldwide… System designers now have the flexibility to choose an embedded Gobi 4000 platform for high-speed 4G LTE support, or an embedded Gobi 3000 platform for worldwide 3G connectivity.”

The new chips, now shipping to OEMs with modules available through Novatel Wireless and Sierra Wireless, are based on Qualcomm’s MDM9600 and MDM 9200 3G/4G wireless modems, and as the company notes, have been specially designed for deployment in devices utilizing Snapdragon dual-core and quad-core processors. In addition to HSPA+, dual-carrier HSPA+, and LTE support, the Gobi 4000 platform is also backwards compatible with HSPA and EV-DO. On top of a possible variant of the chip coming to a future 4G LTE iPad, the Gobi 4000 platform will also be included in Lenovo’s ThinkPad laptops, and Dell’s Latitude E6420 laptops, in addition to other Windows and Android powered mobile devices.

Qualcomm’s senior vice president of produdct management for CDMA Technologies, Cristiano Amon, had this to say about the announcement:

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There has been no shortage of Apple patent applications published by the US Patent & Trademark Office today (via PatentlyApple). Three of the most interesting with potential to be implemented in upcoming products include a dual OLED backlighting system for future iPads, integrated speaker clip for iPod nano, and new hold and swipe gestures for iOS devices.

First up we have a patent application that backs up a report from DigiTimes claiming Apple is considering alternative backlighting systems with a dual-LED light bar design for iPad 3. PatentlyApple outlines the application which details use of multiple OLED backlights not only in a future iPad, but also potentially in a next-gen iPhone, Cinema Display, MacBook, and iMac.

The report also claims Apple mentions “television in passing” within the application, while quoting an announcement from DuPont regarding new AMOLED processing technology, PatentlyApple says that tech is already being supplied to Asian AMOLED manufacturers. Apple’s alternative backlight solutions could also lead to an overall thinner design:

“The bonding of the OLED backlight in the LCD may also increase the mechanical rigidity of the LCD, which may enable the use of thinner glass substrates and possibly reduce the thickness of the overall device. Further, an OLED backlight may generally be thinner than a typical LED backlight, and may also provide improved light uniformity without the use of light guides or additional brightness enhancing films.”

Details on iPod nano speaker patent and swipe and hold iOS gestures below the fold.

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Nintendo president Satoru Iwata declared Apple and iOS as the “enemy of the future” back in 2010. Not only was he right, according to new estimates for the U.S. portable game software by revenue from Flurry Analytics, 2011 seen Nintendo’s grip on the market slide even further as iOS and Android games triple their marketshare from 20% in 2009 to 60% during 2011.

The graphic above shows U.S. revenue for Flurry’s portable gaming category- a category that now includes Nintendo DS, Sony PSP, iOS, and Android. As you can see, iOS and Android have together taken the lead from Nintendo with 58% of revenues in comparison to last year’s 34%. In comparison, Nintendo DS held 57% during 2010, while dropping to just 36% in 2011. Total US revenue jumped from $2.7 billion in 2009 to $3.3 billion in 2011.

When comparing combined game revenues of the two veterans– Sony and Nintendo– with the combined revenues of the two new guys– Apple and Google– 2011 will be the first year where the emerging platforms dominate with iOS and Android estimated to take in $1.9 billion in comparison to the DS and PSP’s $1.4 billion. That accounts for a $200 million drop for Sony and Nintendo and $1.1 billion increase for iOS and Android from 2010. Perhaps investors were right to urge Nintendo to begin developing iOS titles.

As for Nintendo, the company who captured approximately two-thirds of the market in 2009 has seen their “enemy of the future” demote them to just a third of the market. Sony clearly has some catching up to do, but is hard at work on highly anticipated new handheld devices for 2012.

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According to Localytics, AT&T continues to be the dominant iPhone carrier in the US, even with the Verizon entering the market strongly last year, grabbing 40% of the users in half the time.

As the 4S was launched on Sprint as well with truly unlimited data plans, one would have thought more of AT&T’s marketshare would have been diminished.  However, it appears that sprint is taking more away from Verizon.

Sprint’s share of the 4S market now stands at 12% according to the figures.  AT&T, though coverage is spotty in urban areas like New York and San Francisco, does have a significant speed advantage over Sprint and Verizon’s 3G as well as the ability to talk and use data at the same time.

Looking at iPhone 4 distribution as a comparison, Sprint seems to have eroded more of Verizon’s market share than AT&T’s – of the previous-generation handset, 60% are on AT&T versus 40% on Verizon.

A likely driver for these differences is the fact that AT&T can mine its existing base of iPhone users. Because all Verizon iPhone users are in the first year of their wireless contract, the cost of upgrading will be high. However, many longer-term AT&T users, especially those holding iPhone 3GS and earlier devices, are off-contract or nearing the end of their contract. AT&T has been aggressively leveraging the iPhone 4S to sign these customers to new two-year contracts, and the data in this study suggests that tactic may be working.

That data strongly lines up with our poll which we’ve been tracking since before the iPhone 4S launch…

Apple is holding a training session with new managers to address unionizing tomorrow, reports CNet. The session will be held to address unions in the workplace and take any legal questions they might have. The internal document obtained by CNet said the following:

“This course is intended to provide managers with a practical understanding of how unions affect the workplace, how and why employees organize, and the legal do’s and don’ts of dealing with unions. This is a mandatory class for all new managers, and is required biannually for all managers.”

The course will then become a biannual occasion for all of Apple’s retail managers. The push for this course by Apple’s executive team most likely comes after early this year when Apple employees began pushing for the “Apple Retail Workers Union” that would address issues of part-time employees being underpaid. Other issues also included training opportunities and break schedules.

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[youtube=http://www.youtube.com/watch?feature=player_embedded&v=fR7ZtiHoTEE]

Barnes and Noble announced their Nook Tablet today, a successor to their now $199 Nook Color.  The $249 dual core tablet is aimed squarely at the $199 Kindle Fire but has 10GB more (16GB total) storage and the ability to add up to 32GB via micro SD card.  It also has a superior screen to the Kindle and the popular Hulu Plus and of course Neflix for watching videos.  The app library is a much smaller  subset of the Android market, however it is curated much better so only quality apps are allowed in.

Although we hear it a lot, the Nook Tablet or the Kindle Fire aren’t really competitors to the iPad.  Realistically, if you have a budget for a $500-$830 iPad, you aren’t considering a $200 alternative … and vice versa.  Sure all are “tablets” but it is like comparing a netbook to a MacBook Pro.

If anything, these cheap 7-inch tablets are competition for the $188 iPod touch (though with increased portability, superior app and content ecosystem and cameras -that too is a stretch).  Price, being one of the biggest purchase considerations, puts these things more in line with the lower priced iPods.  For people who want a bigger screen and don’t consider the many other advantages to being in the Apple ecosystem a plus, these might make sense.

If you had a choice between the two, would you choose a $199/$249 Nook or a $199 Kindle Fire?

The US Patent & Trademark Office published a patent application from Apple today (via PatentlyApple) detailing how a future iPhone could potentially utilize a virtual SIM card that integrates NFC technology. We reported back in October 2010 rumors of Apple experimenting with virtual SIM cards that would essentially allow consumers to bypass carriers when purchasing an iPhone and utilize a carrier-chooser App Store app to select the network of their choosing. Not long after, reports claimed Apple ditched plans due to concerns raised by European carriers who threatened to no longer subsidize the iPhone.

Today’s patent, which was originally filed in Q4 2010, gives us a much better look into Apple’s possible plans to integrate a custom SIM into a future iOS device. Of course, as reported before, the tech would potentially allow Apple to offer the device through their retail locations and cut the carriers out of iPhone sales. However, according to PatentlyApple, Apple claims another benefit the technology would provide is the ability to produce an even “thinner, astoundingly beautiful, next generation iPhone”, thanks to the lack of a SIM card slot and associated costs. PatentlyApple walk us through the patent:

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According to sources for Digitimes within upstream supply chains, Apple is planning complete overhauls for much of their product lineup for 2012. This seems likely seeing that Apple did not re-design any of their hardware products for a 2011 launch. The publication is calling for an all new iPhone, iMac, MacBook Air and iPad. This all new iPad is likely the one Digitimes spotted for a Q3 launch in the supply chain. This completely new iPhone could be the teardrop-shaped device we’ve heard so much about and rumors of an iMac redesign have yet to become specific.

Apple last overhauled the iMac in 2009 with larger, brighter LED displays, thinner unibody casings, and faster processors. The most recent update came in May with an HD FaceTime camera, improved graphics performance, and faster, quad-core processors across the lineup. In addition, the publication is calling for a MacBook Air overhaul, which seems unlikely given that brand new MacBook Air designs were launched in late 2010. If Digitimes is correct about a MacBook Air overhaul, we think 15 inch addition is what they are discussing. The report says that the new iPhone and iMac are scheduled for launch during the second half of 2012, but offers no launch details for the new MacBook Air line. (Image: The Verge)

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Apple engineers are in the process of contacting iPhone 4S owners in order to determine the cause of alleged battery life issues. One iPhone owner told the Guardian that Apple engineers “installed a monitoring program” on his iPhone to diagnose the source of the problem:

“I then got a call from a senior [Apple] engineer who said he had read my post and was ‘reaching out’ to users for data and admitted this was an issue (and that they aren’t close to finding a fix!) and asked lots of questions about my usage and then asked if he could install the file below and that he would call back the day after to retrieve the info. I extracted the file from my Mac after a sync and emailed it to him. He was incredibly helpful and apologetic in the typical Apple way!”

The unnamed iPhone user was apparently experiencing a “10% drop in standby every hour”, he turned off location services and Siri in an attempt to troubleshoot which new features exclusive to the iPhone 4S might be causing the battery loss to no avail. We first reported about users complaining about the iPhone 4S’s battery draining unexplainably fast a couple weeks ago. The issue seems to only be affecting a small number of users, although the Apple discussion boards are still full of people experiencing similar problems. If this account with an Apple engineer is to be believed, it looks like Apple is at least acknowledging the issue even if they “aren’t close to finding a fix”. We’ll keep you posted as we learn more.

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=a6cNdhOKwi0#!]

Vapor. (via GeekWire)

China Mobile doesn’t officially offer the iPhone yet. But it is carrying 10 Million iPhones on its network according to Reuters.

“We have not yet got agreement with Apple,” Wang said on the fringes of the ITU World telecoms fair in Geneva. “Apple promised to provide, when they develop the iPhone for LTE, that it will include TD-LTE. We are discussing the details.”

There had been rumors that Apple would offer a TL-LTE version of the iPhone 4S earlier this year with China Mobile going as far as saying:

China Mobile and Apple hope to find a solution for close collaboration. We discussed this issue with Apple. We hope Apple will produce a new iPhone with TD-LTE. We have already got a positive answer from Apple.

It appears that positive answer wasn’t for this round of devices, though the CDMA Verizon iPhone arrived off schedule in January. TD-LTE will require some separate chips which could be hard to fit inside the iPhone 4S’s enclosure. Apple however has to look longingly at that 600 million+ subscriber base, however.

While T-Mobile USA is on the opposite end of the subscriber spectrum (China Mobile has around the same amount of subscribers as the populations of Europe and the US combined), T-Mobile is the #4 carrier in the US in the midst of AT&T attempting to swallow it.

But they both don’t officially offer the iPhone, yet have a significant number of iPhones floating around on their network. Both offer a different type of high speed 4G network that stock iPhone 4Ses can’t take advantage of. Both networks do offer EDGE/GSM speeds however which some may find valuable tied with reduced fees or better coverage. T-Mobile told us earlier this year that they had over a million iPhones on their network, a figure that is likely to go up with Apple sneakily offering iPhones 4S unlocked at launch.

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As always, the guys over at IHS iSuppli have just published analysis of their iPhone 4S teardown showing a BOM of $188 for the 16GB and in the process revealing some previously undisclosed suppliers.

The $188 BOM is of course for the entry-level 16GB model, which would also inflate to $196 if factoring in an $8 manufacturing cost. BOM for the 32GB model comes in at $207 (again, before manufacturing), and $245 for the 64GB variant.

The report describes the 4S’s insides as including a “wealth of innovation”, in contrast to the device’s feature set which was received as an incremental upgrade by most. Among the suprises revealed during the teardown– NAND flash memory supplied by Hynix Semiconductor (a first for iPhone) and a “unique custom” wireless module from Avago Technologies Ltd.  The device torn down by iSuppli carried the same sony Sensor as the device X-Rayed by Chipworks but they postulate that Omnivision may also provide an 8-megapixel sensor as well for some of the devices.

Senior director of teardown services for IHS, Andrew Rassweiler, explains:
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[youtube=http://www.youtube.com/watch?v=AIsdkOvySkk]

AT&T just released its earnings and showed strong iPhone sales despite having a 16-month old device on hand with updates looming.  The carrier reported activating 2.7 million iPhones in the quarter out of a total of 4.8 million total devices.  Android device sales doubled year over year.

Non-iPhone Smartphone Sales Increase. AT&T continues to deliver robust smartphone sales. (Smartphones are voice and data devices with an advanced operating system to better manage data and Internet access.) In the third quarter, the company sold 4.8 million smartphones, representing nearly two-thirds of postpaid device sales. Sales of Android devices more than doubled year over year, and almost half of all smartphone sales were non-iPhone devices. During the quarter, 2.7 million iPhones were activated.

Our polls show that significantly more than half of all US iPhone users go with AT&T, due mostly to the higher data rates and ability to talk and use data at the same time.

Press release follows:
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Since the release of the iPhone 4S, artificially intelligent Siri has amazed, surprised, and in some cases, disappointed when it comes to just how intelligent it is. While it seems to handle singing duets pretty well, many have pointed to issues with thick accents, lack of Maps and local service support in UK, and its ability to dial emergency services. Most of the time Siri understands what you’re saying, but if it doesn’t, it most often provides a simple response letting you know. However, when the guys over at Electricpig asked Siri to perform some tasks they knew it couldn’t, they came up with some interesting results:

As you can see in the image above, after asking Siri to “Make a voice memo”, it responded:

“I haven’t yet learned to take dictation, James. You’ll have to use the Voice Memos app for that.”

Obviously “yet” is the key word here. Could this be a hint at Apple’s plans to bring new features to Siri in future updates? Possibly incrementally through the cloud rather than waiting for a major iOS update? The guys also asked Siri a number of other similar questions from “Update my Facebook status” to “Send a tweet” and “Open in iTunes”. When they asked it to “Download an app”, Siri responded:

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[youtube=http://www.youtube.com/watch?feature=player_embedded&v=-F_ke3rxopc]

The keynote went a little bad over in Hong Kong with both the Facial Recognition and the Quick Response features not working or crashing the device. Overall though, there are some interesting new features that certainly differentiate Android from iOS and Windows Phone 7.

As for the Samsung Galaxy Nexus Phone, it has a 5-megapixel camera which has to be a letdown when compared to 8 megapixel cameras that are standardizing on the high end across the industry. Its most impressive feature (unless you are trying to squeeze it into your pocket) has to be the 4.65-inch 720P display. Although Pentile, which means not every pixel gets RGB dots, it does get close to Apple’s 326 PPI Retina display with a 316 PPI density. Like the as yet unpopular Honeycomb tablets, it doesn’t have any front facing buttons but has screen buttons that shift around as well as all of those new Android 4.0 features.

Check 9to5Google.com for ongoing coverage.

…except the huge smartphone sticking out the back.

Imitation=flattery? Check the whole lineup below. via 9to5Google

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“It’s meaningless unless your tablet also includes sandpaper, so that the user can sand down their fingers to around one quarter of their present size,” – Steve Jobs on a potential 7-inch iPad from the Q4 2010 earnings call

After digesting that boulder-sized grain of salt, here’s the latest rumor out of Taiwan.

A report from UDN (via Unwired View), claims manufacturers LG Display and AU Optronics have sent samples of 7.85-inch “iPad Mini” displays to Apple for approval. Apple has apparently already approved specifications for the device and the report claims it could ship as early as next year. Perhaps Apple execs don’t any longer share Jobs’ view that a 7-inch model would be “useless” or “dead on arrival”.

A rough translation of the report seems to mention the same resolution as iPad 2 but also notes 52% increased resolution “per unit area” for the smaller iPad variant. It also mentions “lower prices” and “emerging markets” as the motivating factor for Apple. We already know how Steve Jobs felt about the possibility a 7-inch iPad. After his sandpaper comment (above), Jobs continued:

“Apple has done extensive user testing on touch interfaces over many years, and we really understand this stuff. There are clear limits on how close you can physically place elements on a touchscreen before users cannot reliably tap, flick, or pinch them. This is one of the key reasons, we think, the 10-inch screen size is the minimum size required to create great tablet apps”

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According to several news sources, the partial shutdown of key Apple manufacturer Catcher Technology due to environmental concerns could lead to supply constraints for the company’s MacBook Pro and MacBook Air lineups.

Financial Times reports:

In an emergency announcement on Sunday night, Taiwan’s Catcher Technology (2474:TAI), one of the world’s biggest makers of metal casings for notebook PCs, said it had been ordered to close part of its plant in China’s Suzhou province by regulators, after local residents complained of bad odours generated by the plant.

If you’ve never heard of Catcher Technology, you’re probably more familiar with their work than you think. The unibody casing of Apple’s current MacBook Pro and MacBook Air lineups is perhaps the main reason Catcher is one of the world’s biggest makers of metal casings for computers. The company expects the shutdown to cut sales by a fifth in October and Catcher’s president Allen Horng had this to say at a press conference on Monday (via WSJ):

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Sprint took a big risk on the iPhone, paying a rumored $20B up front to get the iPhone over the next four years (that is some pipeline!).

Mr. Hesse told the board the carrier would have to agree to purchase at least 30.5 million iPhones over the next four years—a commitment of $20 billion at current rates—whether or not it could find people to buy them, according to people familiar with the matter. In order to keep the price people pay for the phone low and competitive with rivals, Sprint would be subsidizing the cost of each phone to the tune of about $500, which would take a long time to recoup even at the high monthly fees iPhone users pay.

Directors debated what they had just heard. Some worried the payoff would be too long in coming. One member questioned whether the multiyear deal might outlast the iPhone’s popularity. To sell that many iPhones, Sprint would have to double its rolls of contract customers, convert all of them to the Apple device or a combination of the two.

It appears that the risk is already starting to pay off.

Today, spokeswoman Michelle Mermelstein told us:

Fared Adib, Sprint Product Chief, issued the following statement: “Sprint today reported its best ever day of sales in retail, web and telesales for a device family in Sprint history with the launch of iPhone 4S and iPhone 4. We reached this milestone at approximately noon CT/1pm ET. The response to this device by current and new customers has surpassed our expectations and validates our customers’ desire for a truly unlimited data pricing plan.”

Unlimited is a good thing.

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Update: Hard Candy CEO Tim Hickman reached out on 9to5Mac to talk about the experience. His full comment after the break.

Ever wonder exactly what iPhone case manufacturers go through prior to an next-gen iPhone unveiling? When it comes to Tim Hickman and his company Hard Candy Cases, the process consisted of spending more than $50,000 to create cases based on a rumored iPhone 5 design that never came to fruition. He even started taking pre-orders on his site.

Based on tipsters in China who sent Hickman 3D models claiming to be that of the, at that point, yet to be unveiled next-gen iPhone and sporting a widened Home button and tapered design, the company got to work. Unfortunately, when October 4th rolled around, that design was nowhere to be seen. Bloomberg reports:

“After three separate manufacturing partners in China sent him detailed 3D models of an iPhone with a widened, pill-shaped “home” button and a slightly tapered back, Hickman decided to roll the dice. He paid $50,000 to make steel moldings to mass-produce cases for the new design and, on the morning of Apple’s announcement, began taking orders on his website. The gamble backfired…Hickman suddenly owned $50,000 worth of paperweights.”

Hickman is hoping his $50,000 investment will pay off with the design being incorporated into a future iPhone saying, “The data we got came from somewhere.” It’s not surprising that Hard Candy took the risk, however, as the company won big with the September 2010 iPod touch, with their cases hitting the shelf the same week of release thanks to leaked designs.

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