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Apple CEO Tim Cook on Immigration Executive Order: 'It is Not a Policy We Support'

timcookApple CEO Tim Cook today sent an email to employees speaking out against the immigration executive order that United States President Donald Trump signed yesterday afternoon. In the letter, shared with MacRumors by an Apple employee, Cook says Trump's order is "not a policy we support."

Cook goes on to say that Apple's HR, Legal and Security teams are in contact with all Apple employees who are affected, and he says Apple has "reached out" to the White House to "explain the negative effect" on the company. Cook's full letter is below:
Team,

In my conversations with officials here in Washington this week, I've made it clear that Apple believes deeply in the importance of immigration -- both to our company and to our nation's future. Apple would not exist without immigration, let alone thrive and innovate the way we do.

I've heard from many of you who are deeply concerned about the executive order issued yesterday restricting immigration from seven Muslim-majority countries. I share your concerns. It is not a policy we support.

There are employees at Apple who are directly affected by yesterday's immigration order. Our HR, Legal and Security teams are in contact with them, and Apple will do everything we can to support them. We're providing resources on AppleWeb for anyone with questions or concerns about immigration policies. And we have reached out to the White House to explain the negative effect on our coworkers and our company.

As I've said many times, diversity makes our team stronger. And if there's one thing I know about the people at Apple, it's the depth of our empathy and support for one another. It's as important now as it's ever been, and it will not weaken one bit. I know I can count on all of you to make sure everyone at Apple feels welcome, respected and valued.

Apple is open. Open to everyone, no matter where they come from, which language they speak, who they love or how they worship. Our employees represent the finest talent in the world, and our team hails from every corner of the globe.

In the words of Dr. Martin Luther King, "We may have all come on different ships, but we are in the same boat now."

Tim
Cook's letter addresses the immigration executive order signed by Trump on Friday, which suspends entry of all refugees to the United States for a total of 120 days, bans Syrian refugees for an indeterminate amount of time, and blocks citizens of seven countries (Iraq, Iran, Somalia, Sudan, Libya, Syria, and Yemen) from entering the United States for 90 days. The order has left immigrants stranded at airports around the country and has sparked panic and outrage among tech companies with affected employees.

The letter comes after Cook spent a week in Washington, where he met with Utah senator Orrin Hatch to discuss the economy and tech industry and had dinner with Ivanka Trump and Jared Kushner. While Cook did not meet with President Trump during the trip, back in December, he and several other tech leaders like Amazon CEO Jeff Bezos, Microsoft CEO Satya Nadella, and Tesla CEO Elon Musk sat down with Trump to discuss a range of topics including trade and immigration.

Though Apple has butted heads with Trump over the past few months after Trump suggested he would force the company to build its products in the United States instead of overseas, Cook explained to employees that he attended the summit to "influence these issues" because "being on the sideline" is not "a successful place to be."

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tag: Tim Cook

Apple CEO Tim Cook Talks Tech and Economy With Utah Senator Orrin Hatch

Apple CEO Tim Cook met with senator Orrin Hatch (R-Utah) on Friday afternoon to discuss topics like technology and economy, reports BuzzFeed.

Hatch, who is a member of the Judiciary Committee and leads the Senate Republican High-Tech Task Force, has met with Cook several times in the past and participated in Apple's ongoing encryption debate with the U.S. government, calling for a private Senate briefing with Apple attorney Ted Olson following the dismissal of the San Bernardino case.

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During Friday's meeting, Hatch told BuzzFeed he and Cook talked about ways to grow the economy and the technology industry. They also spoke about Cook's trip to Utah in October, where Cook took part in a privacy-related Q&A session hosted by Hatch.
"During today's meeting with Apple CEO Tim Cook, we discussed ways to grow the economy and our tech industry, as well as his recent visit with me in Utah," Sen. Hatch said in an statement to BuzzFeed News. "Given the issues I work on as chairman of the Senate Republican High-Tech Task Force, it's especially useful to listen to innovators like Tim."
Cook, along with Apple's vice president of environment, policy, and social initiatives Lisa Jackson, also had dinner with Ivanka Trump and her husband, Jared Kushner, on Thursday evening. They dined at Italian restaurant Tosca, located near the White House, but it's not clear what was discussed.

Cook's meetings with Hatch, Trump, and Kushner follow a December tech summit that saw Cook and other leaders like Amazon CEO Jeff Bezos, Microsoft CEO Satya Nadella, IBM CEO Ginny Rometty, and Tesla CEO Elon Musk meet with U.S. President Donald Trump to discuss topics like trade, immigration, and vocational education.

At the time, Cook told Apple employees he attended the tech summit with Trump because Apple plans to continue to focus on key areas like privacy, security, education, human rights, and combating climate change. "Personally, I've never found being on the sideline a successful place to be," he said. "The way that you influence these issues is to be in the arena."

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tag: Tim Cook

Apple and Amazon Adopt Opposing Strategies as Smart Home War Heats Up

Apple has been in the smart home market for over two years, having introduced its HomeKit framework in the fall of 2014 alongside iOS 8, but HomeKit has been slow to get off the ground because of the company's strict requirements.

Amazon, meanwhile, entered the smart home market somewhat later with its Alexa-enabled Echo in-home speaker officially launching in the summer of 2015, but Amazon's Echo already supports a wider range of products.

The difference between the two? Open and closed development, as explored by Reuters in a new article that details the different approaches that Amazon and Apple have taken when developing their smart home offerings.

Apple maintains strict control over its HomeKit platform, with a heavy focus on security and simplicity. Manufacturers who want to create a HomeKit product are required to use special HomeKit chips priced up to $2, along with specific WiFi and Bluetooth chips.

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Bluetooth-enabled HomeKit products from Elgato

HomeKit devices have to be made in factories certified by Apple, and then have to be sent to Cupertino for rigorous testing, a process that can take three to five months and must be conducted in secret.

Amazon's process for smart home products that work with Alexa is much simpler, taking a matter of days to complete. Smart home companies simply need to write code and send it for Amazon to review -- that's it. No special chips, no secure factories, and no specific oversight. Companies can send a product to a third-party lab for testing to earn a specific "Works with Alexa" label, a process that is completed "within 10 days."

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Amazon's Alexa-enabled Echo

As Reuters points out, while HomeKit doesn't work with as many products, it supports Bluetooth, is much more secure, and has a quicker setup process. Security, which Amazon can't promise, is a key differentiator between the two companies and a factor that could ultimately entice more consumers in the long run. A non-hackable smart home product like a door lock or a camera provides more peace of mind than quick compatibility.
Amazon acknowledges that unlike Apple, it can't guarantee the security of third-party devices. A company spokeswoman did note that sensitive commands like unlocking doors have an extra layer of security such as a voice-controlled PIN.
Reuters spoke with several HomeKit manufacturers, and all were satisfied with Apple's approach. "It makes for a better user experience," said Incipio senior engineer Ahmed Abdallah, speaking about HomeKit's ability to work offline. "They found issues with our product before we released it that we didn't find in our testing," said Nanoleaf CEO Gimmy Chu.

Amazon's simpler certification process has led to over 250 smart home products being certified to work with Alexa, while Apple has certified approximately 100 devices. Alexa-enabled devices have also been selling rapidly, with an estimated 10 million sales over the holiday season, while Apple's HomeKit sales are less clear.
Apple spokeswoman Trudy Muller said the company is leading the industry by being the first to integrate home automation into a major platform with iOS 10. "The number of HomeKit-compatible accessories continues to grow rapidly with many exciting solutions announced just this month," she said.
Apple is rumored to be ramping up its smart home efforts through a smart home hub that's similar to the Amazon Echo, with built-in Siri capabilities, a speaker, and a microphone, allowing it to be used for controlling smart home accessories.

For more detail on the lengths that Apple goes to in order to ensure that its HomeKit products are secure, make sure to read the full analysis over at Reuters.

Microsoft Says Windows PC Makers Seeing 'Continued Growth' in Premium Market Led by Apple

Microsoft on Thursday reported a 5% increase in revenue from licensing Windows to PC makers as part of its latest quarterly earnings results.

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In a subsequent conference call, Microsoft's chief financial officer Amy Hood said its "partner ecosystem continued to see growth and share gains in the Windows premium device category," according to Business Insider. The comment has been interpreted by some as Microsoft stepping up its game against the Mac.

Microsoft reportedly defines "premium devices" as computers that are in the $900-plus price range, which equates to the higher end of the market traditionally led by Apple products such as the MacBook Pro. By its own definition, this includes Microsoft's latest Surface Book and Surface Studio desktop.

Last month, Microsoft said "more people are switching from Macs to Surface than ever before" following "the disappointment of the new MacBook Pro." The company has not released actual sales numbers to back that claim, however, while Microsoft's latest results include licensing to all Windows PC vendors.

While research firm Gartner says the worldwide PC market continues to decline, Mac sales grew by 2.4% in the fourth quarter. Lenovo, HP, and Dell, the top three vendors, saw an estimated 5.4%, 4.3%, and 1.6% growth respectively during the quarter as well, while Asus, Acer, and others faced declines, according to Gartner.

Seven Years Ago Today: Steve Jobs Introduces the iPad

After teasing fans to "come see our latest creation" in the weeks leading up to one of its famous media events, seven years ago today former Apple CEO Steve Jobs unveiled the first-generation iPad to the world. The iPad was announced as a larger-screen counterpart to the company's three-years-old iPhone, with Scott Forstall pointing out during the conference that the tablet could run "virtually every" iPhone app thanks to an on-screen button that users could press to scale the app's resolution up and down on a whim.

The original iPad launched with a 9.7-inch 1024 x 768 resolution touch screen, in 16GB, 32GB, and 64GB capacities. The 1.5lb tablet included Apple's A4 chip and was priced at $499, $599, and $699 for Wi-Fi only models, and $629, $729, and $829 for Wi-Fi + 3G models in each respective capacity. The Wi-Fi version debuted on April 3, 2010, while users interested in Wi-Fi and 3G had to wait until April 30 for Apple's new tablet.

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Steve Jobs on the iPad:
“iPad is our most advanced technology in a magical and revolutionary device at an unbelievable price,” said Steve Jobs, Apple’s CEO. “iPad creates and defines an entirely new category of devices that will connect users with their apps and content in a much more intimate, intuitive and fun way than ever before.”
After the event in 2010, initial reactions to the iPad were largely positive, with sites like Engadget calling it "blazingly fast" and remarking that the tablet had no lag when hopping around its various apps. The screen was thought to be "stunning" and the iPad's iBooks application impressed, thanks to its flipping page animations and library-inspired bookshelf space for eBooks that upheld Apple's then popular skeuomorphic iOS design.


The original iPad's largest drawback centered on its substantial 1.5lb weight, as well as the lack of Flash in its operating system, no multitasking, and no camera. Seven years later, Apple has iterated on its original design and addressed most of these user complaints with each update to the iPad.

The current 12.9-inch iPad Pro weighs about the same as the original iPad at 1.57lbs, and still runs a larger version of iOS, but it's thinner (6.9mm vs 13mm) and is the "most capable and powerful" iPad yet, according to Apple, putting it on par with desktop-class machines.

While the iPad saw strong early adoption, Apple has experienced sales declines in the past few years, with users replacing their iPads less frequently than iPhones. Most commonly, users update their iPhones every year or two, while finding their iPads remain serviceable for longer.

In the company's annual earnings report last October focusing on the fourth fiscal quarter of 2016, iPad sales were down slightly to 9.3 million from 9.9 million in the same year-ago quarter. Although they were also infamously down in sales in 2016, Apple still sold 45.5 million iPhones in the same quarter, down from 48 million in the fourth quarter of 2015.

Steve Jobs
New iPads are consistently part of the Apple rumor cycle, and 2017 has been no different, with current reports pointing towards the launch of three new iPad Pro models sometime during the calendar year. Apple is believed to put out a new 9.7-inch and 12.9-inch iPad, but the exact screen size of a mysterious middle size model has been up for debate, including 10.1, 10.5, and 10.9-inches.

When it launches, the new 10-inch model may look very different from the 2010 iPad, reportedly doing away with the iconic Home Button, further reducing the size of the tablet's bezels with an edge-to-edge display, and include the usual iterative bumps to camera resolution and speed. One of the ports that the 2017 iPad is rumored to keep intact from its seven-year-old progenitor is the 3.5mm headphone jack, which the iPhone 7 ditched last year.

The full press conference covering Steve Jobs' introduction of the iPad can be viewed on YouTube here.

Related Roundup: iPad Pro
Tag: Steve Jobs
Buyer's Guide: 12.9" iPad Pro (Caution)

Apple Releases First macOS Sierra 10.12.4 Public Beta With New Night Shift Mode

Apple today seeded the first beta of an upcoming macOS Sierra 10.12.4 update to public beta testers for testing purposes, two days after seeding the first 10.12.4 beta to developers and three days after releasing macOS Sierra 10.12.3.

Beta testers who have signed up for Apple's beta testing program will receive the 10.12.4 macOS Sierra beta through the Software Update mechanism in the Mac App Store.

Those who want to be a part of Apple's beta testing program can sign up to participate through the beta testing website, which gives users access to both iOS and macOS Sierra betas. Betas should not be installed on a primary machine due to the potential for instability.

Subscribe to the MacRumors YouTube channel for more videos.

macOS Sierra 10.12.4 brings iOS's popular Night Shift mode to the Mac, allowing users to cut down on blue light exposure. Believed to affect sleep by upsetting the body's circadian rhythm, blue light is thought to be more harmful than yellow light.

With Night Shift, the Mac's display automatically shifts from cool to warm at sunset and then shifts back at sunrise. Users can also set custom times for the display's colors to shift, or toggle the effect on manually. A Toggle to turn Night Shift on is available in the Notification Center, and Siri can also be used to activate the feature. macOS Sierra 10.12.4 also includes Shanghainese dictation support, cricket scores for Siri, and PDFKit improvements.

Related Roundup: macOS Sierra

Apple Releases First iOS 10.3 Public Beta With Find My AirPods Feature

Apple today seeded the first beta of an upcoming iOS 10.3 update to public beta testers for testing purposes, more than a month after releasing iOS 10.2 and two days after providing the iOS 10.3 beta to developers.

Beta testers who have signed up for Apple's beta testing program will receive the iOS 10.3 beta update over-the-air after installing the proper certificate on their iOS device.

Those who want to be a part of Apple's beta testing program can sign up to participate through the beta testing website, which gives users access to both iOS and macOS Sierra betas. Betas are not stable and include many bugs, so they should be installed on a secondary device.

ios-10-3-beta
A major 10.x update, iOS 10.3 introduces a new "Find My AirPods" option to help users locate a lost AirPod. Located in the "Find My Friends" app, the Find My AirPods feature marks the last known location where AirPods were connected to an iOS device via Bluetooth and it allows the AirPods to play a sound to make finding them nearby easier.

Subscribe to the MacRumors YouTube channel for more videos.

Along with a Find My AirPods feature, the update also includes a shift to Apple File System (APFS). First introduced in 2016, APFS is optimized for Flash/SSD storage and includes strong encryption and other important features.

Apple recommends all users make an iCloud backup before installing iOS 10.3, as the update will cause the iPhone's file system to switch over to Apple File System.

iOS 10.3 also introduces a tweaked app animation, a new Apple ID profile in the Settings app, a better breakdown on how iCloud storage is being used, SiriKit improvements, new iCloud analytics options, and more. For a full list of what's new in iOS 10.3 beta 1, make sure to check out our dedicated post.

Related Roundup: iOS 10

Apple Set to Join Microsoft, Google, and Facebook in AI Research Group

Apple will take a significant step toward disclosing more of its artificial intelligence research this week by becoming a member of a non-profit AI research consortium founded by five of the tech industry's biggest players.

Last September, Amazon, Facebook, Google, Microsoft, and IBM publicly announced The Partnership on AI, an organization established "to study and formulate best practices, to advance the public's understanding of AI, and to serve as an open platform for discussion and engagement about AI and its influences on people and society".

Partnership on AI
As one of the biggest researchers in AI, Apple's name was conspicuously absent, but that looks set to change in the coming days, following a Bloomberg report on Thursday that Cupertino is ready to add its name to The Partnership's list of corporate heavyweights.
According to its website, the Partnership on AI intends to conduct research, organize discussions, share insights, provide thought leadership, consult with relevant third parties, respond to questions from the public and media, and create educational material that advance the understanding of AI technologies including machine perception, learning, and automated reasoning.
Apple's imminent membership is just the latest indication that the company is prepared to reveal more of its work in areas of artificial intelligence. At an invitation-only AI conference held in Barcelona last month, where Apple employees discussed their work in various related fields, the company announced it would begin allowing its AI and machine learning researchers to publish and share their work in papers.

Two weeks later, the first paper was published, covering Apple's work on intelligent image recognition. Cupertino is also known to be working on a range of other AI projects, including health and vital signs, LiDAR, neural networks, intelligent assistant and language modeling, and activity recognition.

While the Partnership's founding members are committed to publishing a wide range of research under an open license, just how much of this work will be shared remains unclear, but we should know more soon. Apple is expected to announce its membership in the Partnership later this week.

Hands-On With iOS 10.3's New 'Find My AirPods' Feature

iOS 10.3 introduces a new "Find My AirPods" feature, giving AirPods owners a way to keep track of the tiny wire-free earphones Apple started selling back in December.

Because iOS 10.3 is limited to developers, we thought we'd take a hands-on look at the new Find My AirPods feature to give iOS users an idea of what to expect when iOS 10.3 officially launches. In the video below, you can see just how the feature helps you find a lost AirPod, and its limitations.

Subscribe to the MacRumors YouTube channel for more videos.

Find My AirPods relies on the AirPods connection to an iPhone or another iOS device because the AirPods themselves don't have any cellular connectivity built in. The feature keeps track of the last known location where the AirPods were connected to an iOS device over Bluetooth, so if one is misplaced, there's a general location of where it might have last been seen.

That location is displayed on a map in the "Find My iPhone" app, much like any other Mac or iOS device. There's also an option to cause the AirPods to play a sound, which is super handy for finding an AirPod that's fallen between the couch cushions or has been buried in a backpack.

Find My AirPods requires the AirPods to be connected to an iPhone, so the feature does not work while the AirPods are in the AirPods case, making it somewhat less useful. If you lose the AirPods while they're in the case, it appears you're out of luck.

Apple charges $69 to replace a lost or broken AirPod or to replace an AirPods charging case, so though limited, the Find My AirPods option is a welcome feature that does make it a bit easier to keep track of where your AirPods are at all times.

We expect to see several iOS 10.3 betas before the software is released to the public, so general users may need to wait awhile to get their hands on the Find My AirPods feature, but a public beta test is likely to be made available in the next few weeks.

Related Roundup: iOS 10
Tag: AirPods

Huawei Closing in on Apple, Aims to Become World's Largest Smartphone Maker Within Four Years

Since 2011, the worldwide smartphone market has been dominated by Apple and Samsung. The elusive third-best spot, meanwhile, has failed to be held down by one vendor for an extended period of time, changing hands between Nokia, BlackBerry, Xiaomi, and Huawei over the past six years.

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In 2014, it looked like low-priced Chinese vendor Xiaomi had firmly cemented its position as the world's third-largest smartphone maker, but fewer than three years later, it has fallen out of the top five or even six vendors, according to the latest quarterly data from research firms IDC and TrendForce.

Xiaomi's recent decline can be attributed to a limited physical retail presence and increased competition from Huawei's lower-end Honor brand. Xiaomi continues to avoid selling premium smartphones—its most expensive model costs around $400—and some of its Mi smartphones have received mediocre reviews.

Huawei has since dethroned Xiaomi as not only China's largest smartphone maker, but the world's third largest. And now, the company has its eyes set on challenging Apple and Samsung for the crown, reports Fortune.

"We want to grow into top two market share, and, in the future, top one by 2021," Huawei's consumer head Richard Yu told the publication.

In the first quarter of 2016, Huawei sold ten times as many smartphones as Apple in Finland, according to research firm IDC. In Europe, it is now the top-selling smartphone maker in Portugal and the Netherlands and the second biggest in Italy, Poland, Hungary, and Spain, according to the report.

But if Huawei ever wants to truly challenge Apple and Samsung, it will have to conquer a key market where it has failed to make a dent: the United States. Huawei does not even crack the list of top ten smartphone makers in the country, trailing behind smaller rivals such as BLU and OnePlus.

It doesn't help that Huawei lacks agreements with the U.S.'s "big four" carriers, namely Verizon, AT&T, T-Mobile, and Sprint. U.S. customers have to resort to retailers such as Best Buy or Walmart, or Huawei's direct sales website, to purchase one of their devices, reducing the brand's visibility in the country.

For its sake, Huawei appears to recognize it needs to take a new approach to the American market:
“The past five years we were not taking the right strategy,” Yu says. “We didn’t have the right people.” Huawei recently hired Michelle Xiong, a former Verizon wireless executive with experience negotiating with device makers, to help sell Huawei’s smartphones. But a Huawei staffer cautions that any carrier agreement is at least a year away, pushing meaningful success in the U.S. at least three years down the road.
Apple reported sales of 45.5 million iPhones in the third quarter, while IDC estimates Huawei shipped 33.6 million smartphones on the quarter, so the Chinese company is within striking range. But whether it can continue its momentum, or fall back into obscurity like Xiaomi, is something only time will tell.

Tags: Huawei, Xiaomi

Apple's LG 5K Display Store Listing Now Accepting Reviews

Last week, a reddit post accusing Apple of removing negative reviews for the LG UltraFine 5K Display started making the rounds, suggesting Apple was hiding negative feedback about the new display in its web store.

MacRumors has learned that reviews were never made available for the LG 5K Display in Apple's online store, though the reason for that is not clear. It could be that reviews were not activated due to the long delay between when the display was announced and when it became available for purchase.

Whatever the reason behind the lack of reviews, the issue has been fixed. As of this morning, the LG 5K Display listing on Apple's website does indeed feature a "Ratings & Reviews" section.

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Looking back at archived web information from 2016 and early 2017 confirms that the LG 5K Display listing never displayed rating or review details, and if Apple were censoring reviews, the company also likely would have put an end to lukewarm reviews for the 4K LG UltraFine Display. The 4K display store listing has offered reviews since it became available for purchase.

Because Apple didn't delete the reviews, the premise behind the original reddit post is flawed. While it's true there's been some negative feedback about the LG 5K Display on Apple's Support Communities, there was no secret censoring of information on the store page.

It is not clear if Apple is looking into any of the issues that prompted the reddit post. On Apple's Support Communities, customers complain of issues with the display suddenly shutting off, flickering, or not connecting to a Mac, ports not working, sound problems, and more.

The LG UltraFine 5K Display has been available for purchase since the middle of December. Apple is currently offering a limited time discount on the display, dropping the price from $1,299 to $974. The special pricing will be available through the end of March.

Related Roundup: Displays

Apple Resellers and Service Providers Speak Out Following Simply Mac Closures

GameStop last week announced it is closing a number of non-productive Simply Mac locations throughout the United States, less than four years after acquiring and expanding the Apple Authorized Reseller and Service Provider, which effectively serves as a third-party Apple Store in smaller markets.

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Following the reports, we received a tip from a disgruntled Apple Authorized Service Provider owner who said the underlying issues prompting Simply Mac's downsizing are "far deeper" than it would seem. He noted his own AASP is closing because Apple has "slowly strangled" him on margins and with "free labor" demands.

Another longtime Apple Authorized Dealer and Service Provider told us that AASPs have been "under siege" for years. The person, who wishes to remain anonymous, said profit margins are "appallingly low" and that Apple views its authorized service partners as "nothing more than glorified TV repairmen."

"I am sad to say that I do not see this changing," the person said. "Apple is highly aware of our concerns and do not seem to care. As an Apple reseller for over 20 years, I thought that when Apple became successful we would participate in that success, but we did not," the person added.

Given the polarizing comments from a few, we decided to reach out to a number of Apple's authorized sales and service partners in the United States and Canada to see if there is any validity to the claims.

A number of the Apple Authorized Resellers and Service Providers we spoke to refuted the allegations, noting they are stable if not growing, but we did learn that Apple has made one adjustment in particular that might explain the pressure felt by some sales and service partners—especially smaller ones with fewer sales.

Since August 2015, Apple has lowered its profit margins for resellers, requiring them to pay more upfront for products. Apple then rebates the difference as part of the monthly Business Development Funds checks it sends to resellers, but this method requires resellers to wait longer to be fully paid.

In other words, while the margins did not change overall, resellers are now forced to pay more upfront for Apple products to sell, which restricts cash flow that could otherwise be used for day-to-day operations, employee wages, and other expenses. For smaller resellers, the change can be particularly burdensome.

Meanwhile, one reseller believes Apple's arguably lackluster 2016 was a contributing factor to its own year-over-year sales decline.

On the service side, one person told us they "don't know that there is any truth" to the statement about Apple demanding "free labor," which a separate source said is likely an exaggeration for certain items that Apple used to compensate resellers for but now considers "non-revenue repair."

"I would not say that Apple has been demanding any kind of free labor," a service manager told MacRumors. "However, they are increasingly sending customers to us for iPhone repairs, which do not pay very well. We get paid more for a ten minute Mac repair than we do for an hour-long iPhone one."

"I am pleased to say that Apple really values their service partners and has increased our compensation for warranty work," another reseller said. "If you can achieve Premium Service Provider status, you get some nice perks along with higher compensation. While not perfect, Apple service really seems to care about us and is constantly trying to make things better for us."

MacMedics, an Apple Authorized Premium Service Provider with two locations in Maryland in Severna Park and Lanham, and another in Philadelphia, agreed to comment on the record to shine positive light on Apple.

"We're doing very well, we've expanded, and we opened a new pure retail location in 2015. Apple give us great support and guidance," said Dana Stibolt, President of MacMedics. "We're very encouraged by the upward trends over the last year, and in fact we're hiring more staff for all locations for both in-lab and on-site."

The other sources asked not to be identified. Apple and GameStop did not respond to requests for comment.