Following the news that iPhone sales were down during the month of December leading Apple to cut its guidance for Q1 2019, the company is aiming to soften the blow with some positive news.
Apple today announced that App Store customers set new worldwide spending records over the holidays, with App Store purchases hitting $1.22 billion between Christmas Eve and New Year's Eve.
On New Year's Day specifically, customers spent over $322 million on App Store purchases, setting a new single-day record.
"The App Store had a record-breaking holiday week and New Year's Day. The holiday week was our biggest week ever with more than $1.22 billion spent on apps and games, and New Year's Day set a new single-day record at more than $322 million," said Phil Schiller, Apple's senior vice president of Worldwide Marketing. "Thanks to the inspiring work of our talented developers and the support of our incredible customers around the world, the App Store finished off an outstanding 2018 and kicked off 2019 with a bang."
Gaming and self-care were the most popular app downloads and purchases during the holidays. Fortnite and PUBG were some of the most downloaded games over the holiday period, along with Brawl Stars, Asphalt 9, and Monster Strike.
According to Apple, the App Store drove its services category revenue to a new all-time record during the holiday quarter, with multiple Apple services that include the App Store, Apple Music, Cloud Services, Apple Pay and the App Store's search ad business setting new records.
With Apple selling fewer iPhones, the company is hoping investors will shift focus to other areas of its business. Apple in November said that it will no longer provide unit sales data for the iPhone, iPad, and Mac, but yesterday said other information, such as gross margin of services, will be provided.
An icon depicting what appears to be a Smart Battery Case for the iPhone XS has been spotted in action on an iPhone running iOS 12.1.2, providing yet another clue that Apple may be planning to release such an accessory.
The discovery was made by a Reddit user named Tom, who decided to significantly trim down Apple's Smart Battery Case for the iPhone 7 to fit his iPhone X. Not only did the case function, but it also revealed the iPhone X-esque Smart Battery Case icon with a slimmer design and a vertical camera cutout.
Apple discontinued the iPhone X in September, so the icon likely applies to the iPhone XS, which sports the same physical design.
We don't recommend trying this
The icon appears to be the same one discovered in watchOS code by 9to5Mac's Guilherme Rambo, although this time in action on an iPhone. The new case appears to have a Lightning connector, but no "chin" extending below the iPhone.
Rambo also uncovered references to three model identifiers for the case in iOS code, including A2070, A2071 and A2171, suggesting that Apple could release the case in three different sizes for the iPhone XS, iPhone XS Max, and iPhone XR. Another identifier supposedly hinted at a 2018 release, which did not happen.
Apple has never released a Smart Battery Case for a plus-sized iPhone, however, and the larger iPhone XR and iPhone XS Max already deliver longer battery life, so it's possible the new case could be for the iPhone XS only if released.
Apple's first Smart Battery Case was for the iPhone 6 and iPhone 6s, and was equipped with a 1,877 mAh battery that protruded out of the back of the case. Apple later released an iPhone 7 version with a similar design but larger 2,365 mAh battery. Both remain available to purchase for $99 in the United States.
By now, there has been plenty of evidence to suggest that Apple has at least considered releasing a Smart Battery Case for the iPhone XS. Whether the plan comes to fruition remains to be seen — a release could certainly be soon.
Longtime Mac accessory vendor OWC today announced that it has acquired Akitio, maker of popular professional-level external storage solutions focused on Thunderbolt 3. Akitio also offers a number of other Thunderbolt 3 accessories including docks, eGPU boxes, and more.
"This acquisition gives us the opportunity to strengthen our core prosumer lineup and market reach with photography, video and music pros with some really exceptional new offerings," said Larry O'Connor, OWC Founder & CEO. "Our product lines and brands are quite complementary, with Akitio bringing a strong reputation in the Windows space and segments like performance gaming, AR/VR, high-end creative strengths to our base. I see tremendous opportunities ahead for our team and our customers."
While Akitio joins OWC's other brands at OWC's Illinois headquarters, Akitio's teams in California and internationally will remain at their current locations and all customer support and warranty obligations will be honored without interruption.
Qualcomm today announced that it has posted €1.34 billion in security bonds required for the chipmaker to be able to enforce a preliminary injunction on select iPhone models in Germany, after a court in the country found Apple to be infringing Qualcomm patents related to power savings technology used in smartphones.
Last month, a German court ordered Apple to cease the import and sale of all infringing iPhone models in Germany. Apple was also ordered to recall those iPhone models from third-party resellers in Germany, according to Qualcomm.
In a statement, Apple said it is "disappointed" by the verdict and plans to appeal. The company also confirmed that the iPhone XS, iPhone XS Max, and iPhone XR are not affected by the preliminary injunction, but it has temporarily halted sales of iPhone 7 and iPhone 8 models at its 15 retail stores in Germany.
Apple's full statement:
Qualcomm's campaign is a desperate attempt to distract from the real issues between our companies. Their tactics, in the courts and in their everyday business, are harming innovation and harming consumers. Qualcomm insists on charging exorbitant fees based on work they didn't do and they are being investigated by governments all around the world for their behavior. We are of course disappointed by this verdict and we plan to appeal. All iPhone models remain available to customers through carriers and resellers in 4,300 locations across Germany. During the appeal process, iPhone 7 and iPhone 8 models will not be available at Apple's 15 retail stores in Germany. iPhone XS, iPhone XS Max and iPhone XR will remain available in all our stores.
Qualcomm's general counsel Don Rosenberg issued the following statement to MacRumors following the verdict:
Two respected courts in two different jurisdictions just in the past two weeks have now confirmed the value of Qualcomm's patents and declared Apple an infringer, ordering a ban on iPhones in the important markets of Germany and China.
Apple continues to sell the affected iPhone models in China and believes it is in compliance with the ruling. Late last month, it made some minor changes in iOS 12.1.2 to address the Qualcomm patents in China, including introducing a new animation for force closing apps seen in the video below.
Mophie, Apple's retail and online store partner for external batteries, today announced a pair of new Powerstation PD batteries supporting 18-watt fast charging over USB-C to charge your phone to 50 percent in as little as 30 minutes.
Just a few months ago, the company launched a high-capacity 45-watt USB-C PD battery aimed at providing power for MacBooks, but the new Powerstation PD and PD XL come in at lower price points and lower power optimized for phones. The 6,700 mAh Powerstation PD is priced at $59.95, while the 10,050 mAh powerstation PD XL is priced at $79.95.
Each model includes a USB-C port that supports 18-watt charging output and 15-watt charging input, as well as a USB-A port that supports up to 12-watt output, and Mophie's Priority+ passthrough charging technology ensures connected devices charge first, followed by the battery.
The new Powerstation PD and PD XL are available today at mophie.com, but there's no word yet on whether they'll also be coming to Apple's retail and online stores.
AAPL has opened at $144 today on the stock market, with share prices sliding roughly nine percent after Apple lowered its revenue guidance by up to $9 billion for the first quarter of its 2019 fiscal year.
AAPL is down just over 35 percent since closing at $222.22 on November 1, just prior to its last earnings report.
In a letter to shareholders on Wednesday, Apple disclosed that its revenue will be lower than its original guidance for the first quarter of its 2019 fiscal year, coming in at approximately $84 billion. Apple originally guided for revenue of $89 billion to $93 billion in the quarter on November 1.
The letter said lower than anticipated iPhone revenue, primarily in Greater China, accounts for the entire revenue shortfall.
In an internal memo, Apple CEO Tim Cook said he will host an all-hands meeting with employees today at 9:30 a.m. Pacific Time at Apple's Town Hall auditorium on its Infinite Loop campus to answer questions about the shortfall.
AAPL was already dragged down by Apple's recent announcement that it will no longer disclose iPhone, iPad, and Mac unit sales starting with its next quarterly earnings report. The move sparked fears among some investors and analysts that Apple had something to hide, particularly regarding slowing iPhone sales.
Apple yesterday announced that it will report its earnings for the first quarter of its 2019 fiscal year on January 29.
In a memo to employees obtained by Bloomberg's Mark Gurman, Apple CEO Tim Cook provided additional commentary about the company's reduced revenue forecast for the first quarter of its 2019 fiscal year.
Cook said Apple is "disappointed" that its quarterly revenue will fall up to $9 billion short of its initial guidance, entirely due to the iPhone, but touted revenue records from other product categories including the Mac, services like the App Store and iCloud, and wearables like the Apple Watch and AirPods.
iPhone activations also set new Christmas Day records in the United States and Canada, according to Cook.
In a letter to shareholders on Wednesday, Apple disclosed that its revenue will be lower than its original guidance for the first quarter of its 2019 fiscal year, coming in at approximately $84 billion. Apple originally guided for revenue of $89 billion to $93 billion in the quarter on November 1.
The letter said lower than anticipated iPhone revenue, primarily in Greater China, accounts for the entire shortfall.
In his memo, Cook said "this moment gives us an opportunity to learn and to take action," starting with an all-hands meeting with employees today at 9:30 a.m. Pacific Time at Apple's Town Hall auditorium on its Infinite Loop campus.
The full memo:
Team,
Happy New Year — I hope everyone was able to rest and enjoy time with loved ones over the holidays.
This afternoon we issued a letter to Apple investors explaining that we are revising our financial guidance for the holiday quarter. I encourage you to read it. As you will see, our revenue shortfall in Q1 is from iPhone, primarily in Greater China.
While we are disappointed to be falling short of our quarterly revenue goal, our fiscal first quarter was also a record setter for revenue from Services, Wearables and the Mac. iPad revenue grew double-digits over the year-ago quarter, and iPhone activations in the U.S. and Canada set new Christmas Day records. We expect to set all-time revenue records in key markets including the US, Canada and Mexico, Western European countries including Germany and Italy, and countries across the Asia-Pacific region like Korea and Vietnam. Our worldwide installed base of active devices also hit a new all-time high, reflecting the loyalty of our customers and their appreciation for the work you do.
We are tremendously proud of the innovations we're delivering to our customers with iPhone XR, iPhone XS and iPhone XS Max. These are, without a doubt, the best iPhones we've ever made. We did not set a new record for iPhone sales in Q1, however, due to a number of factors — some macroeconomic, and some specific to Apple and the smartphone industry.
External forces may push us around a bit, but we are not going to use them as an excuse. Nor will we just wait around until they get better. This moment gives us an opportunity to learn and to take action, to focus on our strengths and on Apple's mission — delivering the best products on earth for our customers and providing them with an unmatched level of service. We manage Apple for the long term, and in challenging times we have always come out stronger.
With that in mind, please join me for an all-hands meeting on Thursday morning at 9:30 a.m. PT. Be sure to check AppleWeb for more details. Due to construction at Apple Park, we'll be gathering at Town Hall on the Infinite Loop campus. Join us there in person, or via live stream through AppleWeb. I'll have more details about the quarter, and I'm looking forward to your thoughts and questions.
Hope to see you there.
Tim
AAPL shares are currently down around eight percent to $145 in pre-market trading following the disappointing news.
Apple CEO Tim Cook today plans to hold an "all-hands meeting" with employees to alleviate any fears surrounding the company's revision to its Q1 2019 earnings expectations.
According to Bloomberg's Mark Gurman, who spoke to a person familiar with the matter, Cook plans to address concerns from Apple staff by taking questions from workers during Thursday's meeting.
Further details on the meeting have yet to be disclosed, but Cook will likely seek to dampen internal worries about what the revised earnings guidance means for the company's plans as it gears up for another year.
In his earnings call on Wednesday, Cook revealed that Apple expected to end the first quarter of 2019 with $84 billion in revenue, which is down over 7 percent from the $89 billion to $93 billion forecast the company predicted at the end of the last fiscal quarter 2018.
In interview with CNBC, Cook said trade tensions with the U.S. put additional pressure on the Chinese economy, which led to less traffic in stores and lower sales. He also blamed fewer carrier subsidies, a stronger dollar, and the $29 battery replacement program, suggesting that those factors led to fewer iPhone upgrades than expected.
Writing for Bloomberg, Gurman claims that stagnating smartphone sales mean Apple needs to look beyond the iPhone as its core product, but that the company shouldn't rely on its AirPods or Apple Watch lines because they're exclusively tied to iPhone use.
Likewise, Apple's services business is providing an increasingly sizable income, but the long-term success of its services also relies heavily on iPhone usage. In other words, Apple may need to look at new product categories if it is to successully reverse the damage of its iPhone sales problem, which is currently limited to China. The issue however is that potential major launches like AR-glasses and self-driving car technology still seem years away.
For now, it appears Apple's iPhone sales problem is China-focused. According to analyst Shannon Cross of Cross Research, as long as the problem doesn't spread to other regions, Cook can weather the storm.
"It's going to rely on understanding the supply chains, how to make sure costs are efficient and effective," which are Cook's strengths, Cross said.
Apple plans to discuss its final earnings results during the company's first quarter 2019 conference call on Tuesday, January 29.
Apple is to be investigated by an investor rights law firm for potential securities fraud following yesterday's revised Q1 2019 earnings guidance for the company, it emerged on Wednesday.
Bernstein Liebhard LLP, which calls itself "a nationally acclaimed investor rights law firm," announced on its website that it was investigating the fraud claims on behalf of Apple shareholders, based on "allegations that Apple and/or its executives may have issued materially misleading business information to the investing public."
The firm's complaint with Apple focuses on comments about China made by CEO Tim Cook in his November Q4 2018 earnings call, compared to what he told investors yesterday.
In his letter on Wednesday, Cook revealed that Apple expected to end the quarter with $84 billion in revenue, which is down more than 7 percent from the $89 billion to $93 billion forecast the company predicted at the end of the last fiscal quarter 2018.
Cook put the revised guidance down to "lower than anticipated iPhone revenue, primarily in Greater China, [which] accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline."
The statement contrasts with Cook's comments on China during Apple's November Q4 2018 earnings call, in which he told investors that "our business in China was very strong last quarter. We grew 16 percent, which we're very happy with. iPhone in particular was very strong, very strong double-digit growth there."
Essentially, Bernstein Liebhard claims that the difference between the two statements represents "materially misleading business information" that has subsequently "damaged investors." It remains unclear how those allegations will stand up to scrutiny in a law court, however.
Following Cook's earnings call yesterday, Apple's stock fell almost $12 per share, or over 7.5 percent, during aftermarket trading hours. The downgrade also sent shares in other companies with exposure to China tumbling over fears that the slowdown could affect other markets.
Cook said that the timing of the iPhone XS, XS Max, and XR launch compared to the timing of the iPhone X launch last year were set to impact year-over-year comparisons, as would the strength of the U.S. dollar. Cook also said that customers taking advantage of "significantly reduced pricing for iPhone battery replacements" was also a factor that led to fewer upgrades in 2018.
Sling TV has updated its Apple TV app in an effort to simplify access to content and enhance discoverability on the online streaming television platform.
The new user interface upgrades, which are based on customer feedback, include improvements that put content front and center, while enabling subscribers to manage favorites and see more information about shows before viewing.
In the new larger grid guide view, more images and blurbs now appear for the currently selected show, while filters on the left-hand side of the screen filter channels by categories including My Channels, Sports, Movies, and Kids.
Meanwhile, individual channel guides can be accessed by clicking the channel logo on the left of the grid guide to see all the content available on that channel, and clicking a show now also offers more images and information on other seasons available via the streaming service.
Elsewhere in the update, Favorite channels gain some visual UI improvements, and can now be managed by selecting an orange icon at the front of a row, allowing subscribers to view their recordings and edit content in the continue watching ribbon.
Lastly, tapping the Apple Remote touch pad during streaming now lets users view more information about what they're watching, including show name, description, closed caption options, player controls are more.
Sling says the new features for Apple TV are set to come to other Sling TV-supported devices in the future. See the Sling blog for more information.
HMD Global's next smartphone, the Nokia 9 PureView, may come equipped with an interesting-looking five camera setup, according to an alleged leaked launch video of the device shared by rumor site MySmartPrice and leaker Evan Blass.
The video depicts a Nokia device with seven rear circles, dedicated to five ZEISS cameras, a flash, and other sensors.
According to the promo video, the five camera setup allows for five simultaneous shots to be captured at once and then combined, allowing for features that include "10x more light," "incredible texture and detail," and "stunning crisp HDR photography."
Like many other smartphones, the new Nokia device supports refocusing the depth of field after a shot, but the specifications for the device don't go into detail about the benefit (if any) of five cameras other than improved crispness, texture, and low light performance.
The device also features a 5.99-inch display with bezels at the top and bottom, an in-display fingerprint sensor, and support for Android One, an unmodified version of Android created by Google for a more consistent Android usage experience.
Since Apple and other manufacturers introduced a dual-camera design, smartphone manufacturers have been aiming to one up each other with more and more cameras.
LG and Huawei have both introduced three camera rear setups on their most recent smartphones. LG's triple cameras allow for different perspectives because there's a wide-angle lens, a super wide-angle lens, and a telephoto zoom, along with 3D lighting effects and HDR features. Samsung too has been increasing its camera count with the four camera system in the Galaxy A9.
Rumors suggest that Apple is planning to up the number of rear cameras in the next-generation iPhone, perhaps introducing a three camera system with features like improved low-light performance and 3x optical zoom.
HMD Global is said to be planning to unveil the new five camera Nokia smartphone sometime around the end of January.
Apple today updated its investor relations page to announce that it will share its earnings for the first fiscal quarter (fourth calendar quarter) of 2019 on Tuesday, January 29.
Along with the notice on when to expect earnings results, Apple today also announced revised guidance for the first fiscal quarter, which will make the January earnings call an interesting one.
Apple now expects revenue of $84 billion and gross margin of 38 percent, down from a guidance of $89 to $93 billion provided in November during the fourth quarter earnings call.
iPhone XS, XS Max, and XR launch timing compared to iPhone X timing in 2017
A strong U.S. dollar
Supply constraints on Apple Watch Series 4, iPad Pro, AirPods, and MacBook Air
Economic weakness in emerging markets, specifically China
Trade tensions with China
Lower than anticipated iPhone revenue, primarily in China
Weak iPhone upgrade numbers in some developed markets due to fewer carrier subsidies and low-priced battery replacements in 2018
The earnings call will provide more detailed information on Apple's revised guidance, though the January 29 earnings report will be the first without specific unit sales data for iPhone, iPad, and Mac, which Apple said it would stop providing back in November.
It marks a major change in the way that Apple's sales data is reported, making estimating iPhone, Mac, and iPad product sales more difficult. At the time the change was announced, Apple CFO Luca Maestri said that the company does not believe unit sales over the course of a 90-day period are an indicator of the underlying strength of its business.
Apple CEO Tim Cook today provided CNBC with a little more info on its decision, pointing out that the company never offered Apple Watch sales data because of the price range and the lack of value in sharing sales numbers. The iPhone, Cook says, is now in the same position.
It's sort of like you and I going to the grocery store and putting things in our cart and coming up to the register and the person saying 'how many you got'?
It doesn't make sense to add them together anymore because the price ranges are so wide. We didn't do it on watch from the beginning. We've never done it on iPod.
As we now step back from the phone, we now have phones being sold in emerging markets like the iPhone 6s for around $300 and so you've got a range from $300 to $1000 or in some cases over $1000 depending upon your selection of [storage]. And so this thing has lost its meaning.
Cook says that the sales data that it was providing to investors was conflating its value and its usefulness to determining the state of Apple's business.
According to Cook, Apple doesn't plan to never comment on units again and will provide data on unit sales if it will better explain results.
Apple is going to make additional disclosures, such as gross margin of services, a business that has grown significantly in recent years.
The quarterly earnings statement will be released at 1:30 PM Pacific/4:30 PM Eastern, with a conference call to discuss the report taking place at 2:00 PM Pacific/5:00 PM Eastern. MacRumors will provide coverage of both the earnings release and conference call on January 29.
Apple is already working on the next-generation version of iOS, iOS 13. Based on visits to the MacRumors website from Apple IP addresses on devices running iOS 13, work on the update has been picking up over the course of the last few months.
We first spotted devices running iOS 13 in October, and in November and December, visits from iPhones with iOS 13 installed have increased. Visits slowed during late December, but should pick up again now that the holidays are over and work is continuing.
Apple often starts work on new versions of iOS many months in advance, and we've already learned some details about what we can expect in iOS 13. There were several iOS 12 features that were delayed to allow Apple to work on bug fixes and other under-the-hood improvements, and we're expecting to see these delayed features introduced in iOS 13.
Rumors have suggested iOS 13 will include new features aimed at iPad owners, such as a revamped Files app, in-app tabs for opening multiple windows of the same app, support for using the same app side-by-side in Split View multitasking mode, and more.
Other delayed iOS 12 features include a revamped Home screen app grid for the iPhone and iPad, and expanded photo management features.
More details on what we can expect to see in iOS 13 will undoubtedly leak out in the coming months as Apple continues to ramp up testing of the update.
MacRumors readers have shared a list of features that they're hoping to see introduced in iOS 13, including a Messages hub, dark mode, an option to hide or remove the Dock, settings to select default Mail, Maps, and Messages apps, and more. If you have iOS 13 features you're hoping for, feel free to share them on our forums.
Apple will give us a first look at iOS 13 when it hosts its annual Worldwide Developers Conference, which, historically, has taken place during the first few weeks of June.
Apple today published a letter from Apple CEO Tim Cook addressed to Apple investors announcing changes to the guidance for the first fiscal quarter of 2019.
Apple is expecting revenue of approximately $84 billion and gross margin of 38 percent, which is quite a bit lower than the estimate provided in November when fourth quarter earnings were revealed.
At that time, Apple said its guidance included expected revenue of $89 to $93 billion and gross margin between 38 and 38.5 percent. From Cook's letter:
Today we are revising our guidance for Apple's fiscal 2019 first quarter, which ended on December 29. We now expect the following: - Revenue of approximately $84 billion - Gross margin of approximately 38 percent - Operating expenses of approximately $8.7 billion - Other income/(expense) of approximately $550 million - Tax rate of approximately 16.5 percent before discrete items
At $84 billion, Apple will see a year-over-year revenue drop in 2019 after pulling in $88.3 billion during the first fiscal quarter of 2018.
Cook offered up a number of explanations for the decline, some of which were mentioned during the fourth quarter earnings call.
Cook says that the timing of the iPhone XS, XS Max, and XR launch compared to the timing of the iPhone X launch last year will impact year-over-year comparisons, as will the strength of the U.S. dollar.
Apple Watch Series 4, iPad Pro, MacBook Air, and AirPods were constrained during the holiday season, leading to an inability to keep up with demand, as did economic weakness in emerging markets played a major role in the guidance change.
Cook says that customers taking advantage of "significantly reduced pricing for iPhone battery replacements" is also a factor that led to fewer upgrades in 2018. Starting in January 2018, Apple began offering battery replacements for $29 after a snafu that saw the company quietly introducing software that throttled the iPhone's performance without letting customers know. Apple faced multiple accusations that it deliberately slows down iPhones to encourage people to buy new devices, and while that may not be the case, offering cheaper battery replacements does appear to have impacted sales of new devices.
In China specifically, Apple saw a significant decline in sales, especially during the second half of 2018, which Cook says was in part due to rising trade tensions with the United States.
While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China. In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad.
Cook says that Apple saw "fewer iPhone upgrades" than anticipated as a result of the aforementioned factors, requiring the company to lower its expected revenue estimates.
Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline. In fact, categories outside of iPhone (Services, Mac, iPad, Wearables/Home/Accessories) combined to grow almost 19 percent year-over-year.
While Greater China and other emerging markets accounted for the vast majority of the year-over-year iPhone revenue decline, in some developed markets, iPhone upgrades also were not as strong as we thought they would be. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.
At the end of his letter, Cook highlights positive results from the December quarter, such as a growth in active devices, and increased revenue outside of the iPhone business in areas that include services and wearables. Apple, says Cook, is confident in its business and the "pipeline of future products and services."
vMost importantly, we are confident and excited about our pipeline of future products and services. Apple innovates like no other company on earth, and we are not taking our foot off the gas.
We can't change macroeconomic conditions, but we are undertaking and accelerating other initiatives to improve our results. One such initiative is making it simple to trade in a phone in our stores, finance the purchase over time, and get help transferring data from the current to the new phone. This is not only great for the environment, it is great for the customer, as their existing phone acts as a subsidy for their new phone, and it is great for developers, as it can help grow our installed base.
This is one of a number of steps we are taking to respond. We can make these adjustments because Apple's strength is in our resilience, the talent and creativity of our team, and the deeply held passion for the work we do every day.
Expectations are high for Apple because they should be. We are committed to exceeding those expectations every day.
Update: Apple CEO Tim Cook sat down for an exclusive interview with CNBC, where he further explained the guidance revision. He said the shortfall is over 100 percent from iPhone and primarily from Greater China due to a slowing economy during the second half of 2018.
Cook says trade tensions with the U.S. put additional pressure on the Chinese economy, leading to less traffic in stores and lower sales. Cook also blamed fewer carrier subsidies, a stronger dollar, and the $29 battery replacement program, suggesting that those factors led to fewer iPhone upgrades than expected. Going forward, Cook says Apple will focus "really deeply" on things it can control, boosting future sales through trade-in program marketing, monthly pricing options, and more focus on in-store services such as data transfer.
On a recent trip to Europe, I had a chance to try out GigSky's new pay-as-you-go cellular data plan that's available through via eSIM on the iPhone XR, XS, and XS Max.
I used GigSky's service across four countries, testing out the ease of use, the coverage, the setup process, and what it's like to use the eSIM to get cellular connectivity in another country.
Setup
Setting up the GigSky service was simple, and much more convenient than having to source a physical SIM to go along with a cellular service that uses a standard SIM. I downloaded the GigSky app, opened it up and selected the country I was visiting.
GigSky recommended that I purchase a plan once I arrived in my destination country (Czech Republic), which I did, and after the purchase was made and the payment confirmed, I was set up and ready to go.
The app downloaded the eSIM on my phone, and I was able to select it as a secondary cellular option using the Cellular section of the Settings app on the iPhone.
Service Requirements
Using GigSky's eSIM service requires an iPhone that is both unlocked and that supports eSIM, so the iPhone XS, XS Max, and XR. My carrier is Verizon and I purchased my iPhone outright, so it came unlocked by default and there was nothing else I needed to do. The GigSky eSIM just worked.
Potential customers on other carriers may need to make sure their iPhone has been unlocked before the GigSky service will work. It is not available on a device that is locked.
eSIM Usage
I activated the GigSky eSIM after arriving in the Czech Republic, and from there, I didn't need to do anything when traveling between country borders. The data plan was active no matter which European country I was in, and I didn't see anything more than a momentary lapse in service crossing borders.
When first using the eSIM, I did run into a bit of trouble. GigSky's eSIM is data only, which means there's no phone number associated with it, and I didn't think there was enough instruction on how this worked.
I initially wanted to disable my Verizon SIM to make sure I didn't actually use any Verizon data or place Verizon calls/texts, but that got me into quite a bit of trouble in practice. After turning off my Verizon number on the first day in the Czech Republic, I got separated from the people I was with.
As it turns out, disabling the primary number with no secondary number turns iMessage and FaceTime off, and I couldn't get any texts, messages, or calls to go through so I was thoroughly disconnected. There are probably similar issues when changing your main iMessage number, so when using a secondary SIM, whether it's data only or a different phone number, make sure to leave the primary enabled so iMessage continues to work.
After that little setup snafu, I re-enabled my Verizon number, set GigSky as the primary data source, and left Verizon as the secondary data source.
I'm not entirely sure how it works with other carriers, but with Verizon, TravelPass service isn't activated unless I place a phone call or send an SMS message. Because I couldn't turn it off entirely, there was one time where I pocket dialed someone and got myself a $10 daily data charge, but that was my fault.
For the majority of the trip, once I had the settings properly established, the GigSky data worked without a hitch and I didn't need to activate my Verizon travel plan.
Coverage
I tested GigSky's service across four countries in Europe: Germany, Austria, Czech Republic, and Hungary. In most of these locations, except when I was in more rural places, I had reliable, fast LTE service that led me use social networks, check mail, and watch videos with no problems.
In Hungary, specifically in Budapest, my service switched between 3G and LTE, but I was never left without any connection at all with the exception of remote areas. In the major cities, and even smaller cities, my cellular connection worked well.
GigSky's service also worked in the Bay Area of California and Washington DC, two other areas where I was able to test its reliability.
Connection is, of course, going to vary by country and this isn't a reliable metric for service in other areas, but based on this sample, in urban areas, GigSky's service is decent and comparable to LTE from a standard carrier.
Costs
In Europe, and several other countries including the United States, GigSky's service is priced starting at $10 and is available in several high speed (LTE where available) data allotments that last for varying amounts of time, so you can purchase just the data that you might need.
300MB of data is available for $10, and that data pot lasts for just a day.
You can get 500MB of data for $15, 1GB of data for $20, and 2GB of data for $30, with all of these data pots available for 15 days.
GigSky's most expensive plan is its 5GB data plan, which costs $50 and lasts for 30 days. I picked this latter option, and I used just about 5GB of data over the course of my trip. I wasn't doing anything particularly data heavy, but I was browsing the internet, checking social media, uploading images to social media, and checking and responding to emails.
Price wise, I think GigSky's options are fairly expensive, but my own carrier wasn't offering anything better. I have Verizon coverage in the United States, and Verizon's travel plan is $10 per day for 0.5GB of data and unlimited 2G data after that, which is little high speed data for a high price tag.
Some carriers have better deals, but most limit LTE access or charge quite a bit for data. T-Mobile has free unlimited 2G speeds when traveling or charges $5 per day for 0.5GB of high speed data, Sprint offers free 2G data when traveling or offers high speed data passes for $5 day ($25 per week), and AT&T charges $10 per day with LTE speeds limited to your normal data plan allotment.
It would have cost me upwards of $100 to have limited high speed data available on Verizon during my trip, so GigSky was definitely the better option. Getting SIM cards in each country or signing up for a European data plan probably would have been the most price efficient, but GigSky was the simpler option that was still better than what my carrier was offering.
App
Beyond setting up the GigSky eSIM service and activating it, the GigSky app can be used for troubleshooting and to answer commonly asked questions through a Support section. There's also an account settings option, an inbox for communicating with GigSky if there are customer support questions, and a refer a friend section for referring friends for free credit.
While using the GigSky service, I didn't really open up the app at all because many of the settings are handled through the "Cellular" section of the main Apple Settings app.
Available Countries
GigSky's data service works in more than 190 countries around the world, with a coverage map available here. All North American and nearly all European and South American countries support the GigSky service, as do many Caribbean Islands.
Service is more limited in Asia Pacific, Africa, and the Middle East, but there are a few countries where it works.
Bottom Line
After overcoming a few hiccups that come with using a data-only service as a secondary option on an iPhone, I thought GigSky was simple to use, offered great coverage that rarely left me sans cellular connection, and ultimately, convenient.
Getting a second SIM or an eSIM plan in the country that you're traveling to is an option and is potentially more affordable than GigSky, but that can be a hassle if you're visiting multiple countries.
$50 for 5GB isn't the best data deal, but I found that data pot lasted me for nearly two weeks with regular use - uploading photos to Instagram, checking my email, responding to messages, using maps, and browsing the internet - though I did connect to WiFi where available, such as in hotels.
The GigSky service worked seamlessly even as I crossed country borders in Europe, and I didn't have to hassle with swapping out SIM cards, changing my phone number and fussing with iMessage, or finding different plans in countries where I don't speak the language.
GigSky was much more affordable than the plans offered via my own carrier here in the United States (Verizon charges $10/day for 0.5GB and then unlimited 2G) and I wouldn't hesitate to use it again on another multi-country trip. I might choose something more affordable if I were going to a single country, but you can't beat the convenience of a cell phone plan you can purchase and get going right on your device.
How to Buy
To use GigSky's service through the eSIM on a compatible iPhone XR, XS, or XS Max, you'll need to download the GigSky World Mobile Data app from the App Store. From there, plans are purchased within the app at prices starting at $10.
Note: GigSky provided MacRumors with a $100 data credit for the purpose of this review. No other compensation was received.
The USB Implementers Forum today announced the launch of a USB Type-C Authentication program, which is designed to create a cryptographic-based authentication definition for USB-C chargers and devices.
This is important because USB-C Authentication will provide protection from malicious firmware/hardware in USB-C devices. There are multiple USB-based attacks that are out in the wild and are able to do things like keystroke injection, installing backdoors, emulating mouse movements, logging data, hijacking traffic, infecting machines with viruses, and more.
In addition to protecting against malicious hardware, the program will keep host systems safe from non-compliant USB chargers that could potentially cause harm.
With the USB-C Authentication protocol, host machines will be able to confirm the authenticity of a USB-C device, cable, or charger. This confirmation happens right when a connection is made before inappropriate power or data can be transferred.
The USB-IF has outlined the characteristics of the USB-Type-C Authentication Program:
A standard protocol for authenticating certified USB Type-C chargers, devices, cables and power sources
Support for authenticating over either USB data bus or USB Power Delivery communications channels
Products that use the authentication protocol retain control over the security policies to be implemented and enforced
Relies on 128-bit security for all cryptographic methods
Specification references existing internationally-accepted cryptographic methods for certificate format, digital signing, hash and random number generation
Manufacturers who create devices that use USB-C will be able to implement the new authentication protocol into their devices to protect consumers. There is no requirement to implement support for USB-C authentication at this time, with protocol provided as an option to OEMs.
Though Apple has not commented on the release of the program, the Cupertino company will likely be one of the companies to adopt USB-C authentication protocols in the future given its focus on security.
Three and a half months after launch, the iOS 12 operating system is installed on 78 percent of devices released in the last four years, according to updated iOS 12 installation statistics shared on the App Store support page for developers.
Apple now presents iOS data in two ways, offering up installation rates on recent devices and older devices.
While 78 percent of all devices from the last four years are running iOS 12, 75 percent of all devices have the updated installed. 17 percent of users continue to run iOS 11, while five percent of devices released in the last four years run an earlier version of iOS.
iOS 12 was installed on 70 percent of all devices and 72 percent of recent devices as of December 4, so installation rates have grown just a few percent over the course of the last month.
iOS 12 is being adopted more quickly than iOS 11. On January 25, 2018, iOS 11 was installed on just 65 percent of active iOS devices, likely because of the myriad bugs that plagued the iOS 11 operating system over its lifetime.
Adoption rates for iOS 12 are more similar to iOS 10 adoption rates, with that operating system installed on 76 percent of active devices by January 5, 2017.
Apple's ability to quickly disseminate software updates to the majority of its user base has always given it an edge over Android, with Apple able to deliver new features and security updates in a timely manner.
Most Android users continue to use the years-old Marshmallow, Nougat, or Lollipop operating systems rather than the most recent version of Android, and many Android devices may never see updates to newer versions.
A few months ago, the second-generation Apple Pencil was released with a more seamless design and a matte rather than glossy finish. However, like the original, the new Apple Pencil is only available in an off-white color.
A variety of skins are available for customizing the design of the Apple Pencil, but Reddit user Cedric M. from Frisco, Texas decided to take the do-it-yourself route with some sandpaper, synthetic fabric dye, and paint, transforming his second-generation Apple Pencil into one that closely resembles a No. 2 graphite pencil.
What makes this customized Apple Pencil unique is that Cedric achieved a wood-like texture with sandpaper. He then used synthetic fabric dye and paint to color the tip, shaft, and collar of the pencil and shared photos on Reddit.
Cedric spoke to MacRumors about the project:
I saw a few "pencil" decals for the Apple Pencil 2 but didn't like the idea of something that could be misaligned or peel. I experimented a bit with Rit dye and have some experience using it at my job - I knew that it could be used to dye plastics with relative ease. I wanted to replicate the texture and feel of an actual wooden pencil and was happy with the results I achieved with some careful sandpapering.
The finished product looks impressive, and we award Cedric full marks for creativity, although we don't recommend everyone follow these steps since it is still cosmetic damage to the Apple Pencil. For most people, this $6 skin from dbrand is the cheapest and easiest way to make the new Apple Pencil resemble a No. 2 pencil.
The second-generation Apple Pencil magnetically attaches to the new 11-inch and 12.9-inch iPad Pro models. It also features automatic pairing, wireless charging, tap to wake, double-tap gestures to switch drawing tools, and a more seamless design with no Lightning connector, cap, or chrome ring.
A variety of skins are also available for the original and second-generation Apple Pencil from Amazon and elsewhere.
Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.
Apple CEO Tim Cook today plans to hold an "all-hands meeting" with employees to alleviate any fears surrounding the company's 
Apple today 
