MacRumors

Apple's so-called "iPhone 8" with an OLED display and wireless charging will also feature an "enhanced receiver" with "further improvements" to stereo sound and waterproofing, according to new research shared this week by JPMorgan analysts tracking the company's supply chain in the Asia-Pacific region.

For those unfamiliar, the receiver is the slim, meshed earpiece cutout above the screen that you hold against your ear during a phone call. Since the iPhone 7, it has doubled as a full-out speaker. With two speakers, Apple says the iPhone 7 delivers two times the audio output of an iPhone 6s with increased dynamic range.

JPMorgan didn't specify what acoustical improvements will be made to the iPhone 8's receiver, but it's reasonable to assume it could have higher peak volume at the very least. The earpiece will also be more waterproof, in line with a previous rumor claiming the iPhone 8 will have even better IP68-rated water resistance.

The research note also made the rather outlandish prediction that AirPods may come as a free accessory with the iPhone 8.

Apple including AirPods with the iPhone 8 isn't something we've heard before, so treat the rumor with a healthy dose of skepticism. But, if the rumor proves to be accurate, AirPods would presumably replace Apple's wired EarPods with Lightning connector that it includes in the box with current iPhone models.

AirPods cost $159 in the United States, considerably more than EarPods, which retail for $29 when purchased separately, and cost Apple barely anything to make, according to estimates by market research firm IHS Markit. It's unclear how much it costs Apple to manufacture a pair of AirPods.

Multiple reports suggest the iPhone 8 will be expensive, with the base model costing at least as much as a maxed out iPhone 7 Plus. Given that many iPhone 8 configurations will likely exceed $1,000 in the United States, perhaps Apple will still be able to achieve a reasonable enough profit margin to include AirPods in the box.

Other iPhone 8 features expected by JPMorgan have all been rumored previously, including a stainless steel and glass design, faster processor, larger battery, wireless charging, and 3D sensing module for facial recognition. JPMorgan estimates the device will be $75 to $80 more expensive to manufacture.

This research note comes from a group of JPMorgan analysts in the Asia-Pacific region, including Gokul Hariharan. Not listed is Rod Hall, who covers Apple for JPMorgan in the United States. Hall is the analyst who believes there's a highly likely chance Apple will preview the iPhone 8 at WWDC in June.

Apple's rumored "iPhone 8" with an OLED display and wireless charging will continue to have Touch ID, but there is a "high chance" it will be on the back of the smartphone, says Hong Kong-based equity research firm CLSA.

iPhone to ditch fingerprint sensor? We don’t think so.
Both Samsung and Apple tried to enable in-display fingerprint sensing on full-screen OLED phones in 2017, but their optical tech seems immature and the major iPhone 8 bottleneck. Some thus speculate the fingerprint sensor will be removed and replaced by 3D sensing. Our latest supply chain checks indicate the iPhone 8 will still have the sensor given security, user-friendliness, and a need for payments infrastructure, but there is a high chance it will be on the back like Samsung's Galaxy S8.

CLSA created a diagram showing Touch ID placed slightly below the Apple logo on the back of the iPhone.

Samsung included a fingerprint sensor on the back of the Galaxy S8, but some reviews found it to be awkwardly positioned next to the camera. Apple placing Touch ID lower down could make it easier to reach.

The diagram also shows a vertically-aligned dual-lens camera, a widely rumored iPhone 8 feature seen in previous renders. There also appear to be additional modules next to the front-facing camera, likely for rumored 3D sensing and facial recognition functionality. Other features shown are identical to the iPhone 7.

The diagram suggests the iPhone 8 will be 144mm tall and 71mm wide, making it slightly larger than an iPhone 7 but smaller than an iPhone 7 Plus as expected. With a depth of 7.69mm, the iPhone 8 would be just a hair thicker than the iPhone 5s, if the dimensions CLSA lists prove to be accurate.

Touch ID on the back of the iPhone 8 appears to be a fallback solution given Apple's struggles to integrate the fingerprint sensor underneath the smartphone's display effectively enough for mass production. Leaked renders suggest Apple has explored a rear Touch ID sensor on at least one iPhone 8 prototype.

Other manufacturing challenges may push iPhone 8 production behind schedule by at least one or two months, possibly delaying shipments until October or November. Nevertheless, most analysts still think Apple will announce the iPhone 8 in September alongside the so-called iPhone 7s and iPhone 7s Plus.

While some Apple fans will quip that "this same rumor surfaces every year," oft-reliable analyst Ming-Chi Kuo of KGI Securities implied this year's shortage could be much more "severe" than in previous years.

Gadgets 360 published an interview with Apple SVP of Worldwide Marketing Phil Schiller this week that could shed some light on Apple's plans for a dedicated Siri-based voice-assistant for the home. Rumors have swirled in recent weeks about Apple's plans to unveil an Amazon Echo-like smart connected speaker, possibly as early as WWDC in June, so Schiller's thoughts on the topic could potentially relate to the way Apple is approaching the design of its Echo rival.

During the interview, Schiller demurred when asked what he thought about Amazon's Echo and Google Home, but his comments clearly imply that the two speakers leave a lot to be desired: "My mother used to have a saying that if you don't have something nice to say, say nothing at all." More revealingly perhaps, Schiller took pains to distinguish between different usage scenarios for voice assistants: handsfree, such as while driving, when simple voice-activation is convenient – but limited – and most other occasions when the availability of a screen is preferred.

"We think it's important that there are times when it's convenient to simply use your voice when you are not able to use the screen," said Schiller. "For example, if you're driving [and] you want Siri to work for you without having to look at the screen, that's the best thing. Or maybe you're across the room, and you want to ask Siri to change the song you're listening to."

So there's many moments where a voice assistant is really beneficial, but that doesn't mean you'd never want a screen. So the idea of not having a screen, I don't think suits many situations. For example if I'm looking for directions and I'm using Maps, Siri can tell me those directions by voice and that's really convenient but it's even better if I can see that map, and I can see what turns are coming up, and I can see where there is congestion, I understand better my route, and what I'm going to do.

Schiller continued his argument for voice assistants with screens using the example of photography and photo sharing. "With all the social networking apps that are now embracing photos more and more, well, it doesn't work really so great in voice-only assistants," said Schiller. The same goes for games, he said, calling them the "biggest category of all".

I have yet to see any voice-only games that, for me, are nearly as fun as the one that I play on my screen. And so I think voice assistants are incredibly powerful, their intelligence is going to grow, they're gonna do more for us, but the role of the screen is gonna remain very important to all of this.

Schiller ended his comments on the topic by calling the dual role of voice-assistants "an interesting discussion", especially with respect to "when each is appropriate, and what they can do in our lives".

It's unclear how Schiller's comments fit in with the recent uptick in rumors that Apple is working on a Siri-based smart speaker for the home. Often-reliable analyst Ming-Chi Kuo of KGI Securities has said the product will double up as an AirPlay speaker and feature a custom W1 Bluetooth chip for easy pairing, while Sonny Dickson has suggested the device will run a variation of iOS and have a Mac Pro-like concave top with built-in controls. However, none have claimed Apple is working to integrate a screen into the device.

By contrast, recent alleged leaks have suggested Amazon's next-generation Echo could have a built-in touchscreen and camera with the potential to support phone and video calls.

In the Gadgets 360 interview quoted from above, Schiller also spoke about other topics, including Apple's Swift programming language, and the company's app subscription model as it relates to developers and users of the App Store. You can read the full interview here.

Well-known Windows backdoor malware "Snake" has been ported to the Mac for the first time, according to MalwareBytes. Described as "highly-sophisticated," Snake (also called Turla and Uroburos) has been infecting Windows systems since 2008 and was ported to Linux systems in 2014 before making its way to the Mac.

The Snake malware was found earlier this week in an installer masquerading as Adobe Flash Player, buried inside a file named "Install Adobe Flash Player.app.zip." It is designed to look like a legitimate Adobe Flash installer, but is signed by an illegitimate certificate.

It does, actually, install Adobe Flash Player, but it is accompanied by additional software that is malicious and designed to provide a backdoor into the Mac. The malicious files are well hidden in the /Library/Scripts/ folder and disguised as an Adobe launch process.

In all, this is one of the sneakier bits of Mac malware lately. Although it's still "just a Trojan," it's a quite convincing one if distributed properly. Although Mac users tend to scoff at Trojans, believing them to be easy to avoid, this is not always the case.

Apple already revoked the certificate that the Snake malware was using to infect Mac machines, but another iteration could pop up, so Mac users should be aware of the possibility.

Those infected by Snake are vulnerable to having data stolen, including login information, passwords, and unencrypted files.

To avoid malicious software, Apple recommends downloading content only from the Mac App Store or from trusted developers.

Apple reported its second quarter earnings results earlier this week, and during its subsequent conference call, CEO Tim Cook said Mac revenue hit a new March quarter record due to "strong demand" for the latest MacBook Pro with Touch Bar models, released in October 2016.

We had great Mac results during the quarter. Revenue grew 14 percent to a new March quarter record, and we gained market share thanks to strong demand for our new MacBook Pros. Our Mac business has generated over $25 billion in revenue over the past four quarters.

Apple sold 4.2 million Macs in the quarter, up four percent from the 4 million it sold in the year-ago quarter, but it does not break out sales on a model-by-model basis. Mac-related revenue totaled $5.8 billion, up 14 percent from 5.1 million in the year-ago quarter, a new all-time record in the second quarter.

Apple's record March quarter was achieved despite a lack of hardware updates to the MacBook, MacBook Air, iMac, Mac Pro, and Mac mini in over one to three years depending on the model. The MacBook Pro was the only Mac that Apple updated in 2016, beyond making 8GB RAM standard on the 13-inch MacBook Air.

Fortunately, updates are on the horizon. Last month, Apple made the rare move of pre-announcing that it's working on new pro-focused iMac models that will launch later this year. It's also working on a new Mac Pro that will feature a "modular" design, after admitting the 2013 model has thermal constraints.

Apple analyst Ming-Chi Kuo of KGI Securities said new 13-inch and 15-inch MacBook Pro models with faster Kaby Lake processors would enter mass production in the June quarter. He also said new 12-inch MacBook models would enter production in the spring, and some high-end models could supposedly have 16GB of RAM.

Kuo also mentioned a "15-inch MacBook" that would include 32GB of RAM and enter mass production in the early fourth quarter, which starts in September. He said the model would be "the most significantly redesigned product this year," and he believes it will adopt desktop-class RAM to satisfy high-end users.

Hardware references to possible next-generation MacBook Pro models were discovered in macOS 10.12.4 in February. It's less certain if the MacBook Air will continue to receive updates, or be supplanted by the 12-inch MacBook entirely, while Apple said the Mac mini remains an "important product" in its lineup.

"We're investing aggressively in [the Mac's] future, and we are very excited about the innovation we can bring to the platform," said Cook.

Apple's stock has recovered from early week losses incurred after the company's earnings results fell slightly below Wall Street expectations.

Apple shares are currently trading for roughly $148, slightly above Tuesday's closing price of $147.51, set just before the company's earnings report. The stock had dropped to as low as $144.27 on Wednesday, but Apple has bounced back since alongside an overall rise in the S&P 500 index today.

Wall Street remains bullish on Apple heading into the second half of the year, as most analysts think the so-called "iPhone 8" with an OLED display and wireless charging will be a hit among customers. There's also a larger than usual "supercycle" of customers with older iPhone models due to upgrade.

MacRumors obtained research notes from 19 analysts tracking Apple, and 15 of them continue to rate the company's stock as a "buy" or equivalent following the company's second quarter earnings results. All but three analysts believe that Apple's stock price could rise to between $150 and $185.

Apple's stock has been steadily climbing in value since dropping to a 52-week low of $89.47 in 2016, when the iPhone maker reported its first decline in annual revenue since 2001, and its first drop in iPhone sales ever.

AAPL touched $148.20 in intraday trading this morning, a new all-time high. The stock is on pace to top Tuesday's record close of $147.51.

After nearly two years of being absent from the fourth generation Apple TV's app lineup, Amazon Prime Video is reportedly on its way to Apple's set-top box and could arrive for Prime subscribers to download and watch videos as soon as this summer. The news comes from Recode, citing sources familiar with the plans of each company who said that Apple and Amazon are "close to an agreement" in regards to Amazon Prime Video finally being available on Apple TV.

Specifically, Amazon employees are expecting the app to appear on the Apple TV App Store sometime in the third quarter of 2017. The sources at the heart of the story didn't divulge what compromises or agreements might have happened behind the scenes for Amazon to come to Apple TV, but those watching and hearing about the backroom meetings believe that such a deal was made "at a high level," meaning company CEOs Tim Cook and Jeff Bezos themselves came to mutual terms to make the deal happen.

Amazon and Apple may have reached a truce. The tech giants, who are increasingly competing for customers’ time, eyeballs and money, are close to an agreement to bring an Amazon video app to Apple’s Apple TV set-top box, according to people familiar with the two companies.

One year ago, Bezos briefly discussed Amazon and Apple TV at Recode's Code Conference, stating that Amazon always seeks out "acceptable business terms" before it brings its video app to streaming devices. On Apple's side of things, Eddy Cue mentioned in February that Amazon is always welcome to join Apple TV "any time they like," and said that he hoped they will do so "sometime soon."

In late 2015, Amazon stopped selling Apple TV devices on Amazon.com, further solidifying the idea that Amazon Prime Video might never arrive on Apple TV. Now, it appears that Apple and Amazon have reached some kind of mutual agreement, the details of which remain unclear.

Late last year, Amazon did launch an app for the Apple TV, but it wasn't for streaming movies and television from Amazon Prime, and only allowed users to search for and browse items on Amazon.com.

Apple has raised $7 billion in debt in a six-part bond sale, according to the company's final pricing term sheet filed with the Securities and Exchange Commission today. The fixed and floating notes mature between 2020 and 2027.

Apple said it entered 2017 with $256.8 billion in cash and marketable securities, but approximately 93 percent of that amount is held outside of the United States. Those foreign reserves would be subject to up to a 35 percent corporate tax rate if repatriated, so Apple turns to the debt markets to raise money at a cheaper cost.

Apple will use the $7 billion raised to continue funding dividend payments and share buybacks. Apple expanded its share repurchase authorization by an additional $50 billion this week, and the company says it expects to spend a total $300 billion in cash under its capital return program through March 2019.

Apple also typically puts the money towards operational expenses, repayment of earlier debt, and acquisitions of other companies. Then there's Apple's new $1 billion advanced manufacturing fund announced by CEO Tim Cook earlier this week, which will need to be funded eventually as well.

Apple may not have to raise as much through debt markets in the future, as U.S. President Donald Trump has expressed his desire for a tax holiday that would allow domestic companies to repatriate foreign cash at a discounted tax rate. Reports have suggested the rate could be as low as 10 percent.

Interestingly, unlike many of Apple's recent bond offerings, today's sale does not include any notes with 30-year maturities. Some analysts believe Apple may be avoiding long-term bonds given the possibility of a tax holiday.

Peter Tchir of Brean Capital in a note to clients obtained by Barron's:

This is the 7th time Apple has come to market with a big slate of bonds. They started in 2013 with no debt and should be at about $100 billion by the end of today. In each of those prior deals they issued 30 year bonds - but not this time. Is it uncertainty over taxes? Talk about an ultra-bond on treasury side? Repatriation? Maybe it means nothing, but I think it is at least mildly curious that they aren't doing a new long bond here.

Apple's financial chief Luca Maestri this week acknowledged "there is a lot that still needs to happen there," in regards to the Trump administration's tax plans. "The program we're announcing today reflects the current tax legislation in this country," he said. "Obviously we will reassess our situation if things change."

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.

Apple became the world's largest wearables vendor in the first quarter of 2017 with an estimated 3.5 million Apple Watch shipments, according to new research data shared this afternoon by Strategy Analytics.

Apple Watch shipments overtook Fitbit shipments during Q1 2017, allowing Apple to capture 15.9 percent global marketshare to become the top wearables vendor. Fitbit shipped an estimated 2.9 million wearable devices during the quarter, while Apple's closest competitor, Xiaomi, shipped an estimated 3.4 million wearable devices.

Apple's estimated 3.5 million shipments are up from an estimated 2.2 million Apple Watch shipments in the year-ago quarter. As Apple Watch shipments have grown, Fitbit shipments have dropped sharply from an estimated 4.5 million units in Q1 2016.

Xiaomi is still close to Apple at 15.5 percent global marketshare, but has seen its shipment numbers slip while Apple's have grown.
In the year-ago quarter, Xiaomi's marketshare was at 20.9 percent, while Apple's was at 12.1 percent. Fitbit, meanwhile, has dropped from 24.7 percent in Q1 2016 to 13.2 percent in Q1 2017.

Cliff Raskind, Director at Strategy Analytics, said, "Fitbit shipped 2.9 million wearables worldwide in Q1 2017, falling a huge 36 percent annually from 4.5 million in Q1 2016. Fitbit has lost its wearables leadership to Apple, due to slowing demand for its fitnessbands and a late entry to the emerging smartwatch market. Fitbit's shipments, revenue, pricing and profit are all shrinking at the moment and the company has a major fight on its hands to recover this year."

Apple does not share official Apple Watch sales numbers, instead lumping the device into its "Other Products" category that also includes the Apple TV, Beats products, iPod, and Apple-branded and third-party accessories, so Apple Watch sales numbers shared by various analytics firms are all estimates.

Revenue from "Other Products" was $2.87 billion during the second quarter of 2017 according to Apple's recently released earnings report, up from $2.19 in the year-ago quarter. According to Apple CEO Tim Cook, Apple Watch sales have nearly doubled year-over-year.

"Combine Apple Watch, AirPods, and Beats and our revenue from wearable products in the last four quarters was the size of a Fortune 500 company," said Cook.

Update: According to Fitbit, which does publish its sales numbers, 3 million Fitbits were sold during 1Q 2017, not 2.9 million.