MacRumors

Apple is planning to unveil the second-generation Apple Watch in September or October, according to a new report from DigiTimes citing supply chain sources in a wider piece on weakening demand for tablets and wearables.

Component makers and Apple suppliers are said to be seeing "rather conservative orders" for the new Apple Watch despite its upcoming release date, information that directly conflicts with a June DigiTimes report that pointed towards "higher-than-expected" orders. Given the confusion over the second-generation Apple Watch in the supply chain, DigiTimes' information does not offer a clear picture of the demand Apple expects to see for the device.

Rumors suggest the second-generation Apple Watch will see under-the-hood spec improvements and perhaps some minor form factor tweaks, but major changes to the device are not expected to be unveiled this year. Improved battery life, a faster processor, and built-in cellular capabilities are all features we could see in a new Apple Watch.

While we can't glean anything about supply from DigiTimes, the September or October timeframe is in line with past rumors. Previous information suggests Apple is perhaps planning to unveil a new Apple Watch alongside new iPhones, and new iPhone models are typically announced in September.

According to a recent rumor, the iPhone 7 and iPhone 7 Plus will be released on Friday, September 16, and if that's the correct launch date for the iPhone 7, we can likely expect to see the Apple Watch released on the same day. With a September 16 launch date, an unveiling event could potentially take place during the week of September 5th.

Apple today will release its fiscal third quarter earnings results, reflecting a three-month period that ended in late June, and the consensus among analysts is that the company will report a second consecutive decline in iPhone sales and overall revenue. That same scenario played out last quarter for the first time since 2003.

In fact, some analysts have forecasted that iPhone sales may be as low as 38 million to 40 million units, a decline of up to 20 percent compared to the year-ago quarter. If the estimates prove to be accurate, it would mark Apple's worst quarter of iPhone growth ever in the smartphone's nine-year history.

Apple itself provided guidance of between $41 billion and $43 billion in revenue, which would be up to 18 percent lower than the $49.6 billion in revenue it posted in the year-ago quarter. Wall Street expects revenue to be around the $42.1 billion mark, with earnings of $1.39 a share -- one analyst has EPS as low as $1.35.

iPhone accounts for around two-thirds of Apple's revenue, and an even greater portion of its profits, so the device's recent slide is concerning for investors -- reflected in the price of Apple shares, down around 21 percent from a 52-week high of $123.91. The good news for Apple is that many analysts believe it will "bottom out" in the June quarter and return to iPhone and revenue growth by the 2017 fiscal year.

But, until then, the bleeding is expected to continue. iPad sales are forecasted to decline for a tenth consecutive quarter, while market research firm IDC's estimated Apple Watch sales of 1.6 million in the June quarter would be 55 percent lower than the year-ago launch quarter. Mac sales are also projected to decline by up to 10 percent as buyers await a 2016 MacBook Pro and other new models.

As emphasized by Apple CEO Tim Cook, the recent decline in Apple's hardware sales has been offset by growth in the company's expanding services category, including the likes of Apple Music, Apple Pay, AppleCare, and licensing. That trend looks set to continue, as Above Avalon analyst Neil Cybart forecasts service revenue was $6.1 billion in the June quarter for 20 percent year-over-year growth.

Beyond the third quarter, attention has turned to tempered expectations surrounding the upcoming iPhone 7. The consensus among analysts is that a perceived lack of new features coming to the next-generation smartphone could result in a "mega upgrade cycle" for the so-called iPhone 8 rumored for 2017. Next year's model is already rumored to feature a new design with an OLED display and glass casing.

Apple will publish its third quarter earnings report at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time), and we will share the results shortly thereafter. MacRumors will then provide live coverage of the ensuing conference call with Cook and Apple CFO Luca Maestri at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

The US National Institute for Standards and Technology has released a new draft of its Digital Authentication Guideline, which sets the rules that all authentication software eventually follows. In the document, NIST deprecates the implementation of SMS as a method with which users validate a second level of security on various accounts, "no longer" allowing its use in future guidelines as it is considered not secure enough (via TechCrunch).

If the out of band verification is to be made using a SMS message on a public mobile telephone network, the verifier SHALL verify that the pre-registered telephone number being used is actually associated with a mobile network and not with a VoIP (or other software-based) service. It then sends the SMS message to the pre-registered telephone number. Changing the pre-registered telephone number SHALL NOT be possible without two-factor authentication at the time of the change. OOB using SMS is deprecated, and will no longer be allowed in future releases of this guidance.

The new guidelines also make a point for companies to ensure that two-factor authentication notifications aren't going through a VoIP service, which could be easily compromised. NIST also includes "limited use" of biometrics as a way for users to gain access to their second layer of authentication, meaning Apple could pivot to Touch ID as an alternative if SMS support for the security feature officially comes to an end.

In iOS 10, Apple plans to make some changes to the way videos are handled, putting a stop to irritating autoplay videos and offering improvements to animated GIFs. The changes will come in the form of updated policies for "video" elements, as outlined today by Apple software engineer Jer Noble on the Webkit blog

As iOS 8 and iOS 9 users know, an animated GIF encoded using "video" tags requires users to tap on the GIF to play it as a video would play, creating a frustrating user experience. When viewing such a GIF, it's currently necessary to load the image, tap it to play, and wait for it to be displayed full screen. In iOS 10, the user experience is being simplified.

Going forward, Webkit will allow videos with no audio element or a muted audio element to honor autoplay attributes, so GIFs and videos in this format will no longer require a tap to play automatically. Videos that use the "video playsinline" element will also be able to play inline without the need to enter fullscreen mode.

At the same time, videos that do have an audio element will be automatically paused and will require a user gesture to play, cutting down on irritating advertisements and other spam-type videos. Autoplay video elements will play only when on screen and will pause whenever they are not visible, which will help to preserve battery life.

Starting in iOS 10, WebKit relaxes its inline and autoplay policies to make these presentations possible, but still keeps in mind sites' bandwidth and users' batteries. [...]

We believe that these new policies really make video a much more useful tool for designing modern, compelling websites without taxing users bandwidth or batteries.

GIFs that use the video element have smaller file sizes and thus use less bandwidth and less energy, making them an appealing alternative to the GIF format. Displaying GIFs this way is growing in popularity, and iOS users will no longer have a subpar viewing GIF experience on popular sites like Imgur. The full Webkit video policies and use case examples are available through the Webkit blog post.

The changes to Safari will be implemented as part of iOS 10, currently available to developers and public beta testers. iOS 10 will see a release this fall, likely alongside new iOS devices.

Apple is working on iPhones with iris scanning capabilities that could debut in 2018, reports DigiTimes in a wider piece about increasing interest in advanced biometric functionality in smartphones.

Iris scanning would potentially be used in place of Touch ID as a way to verify a user's identity, performing functions like making payments and unlocking an iOS device. Each person's iris, or the circular colored muscle of the eye, contains a complex and random pattern that is unique to each individual.

Current iris scanning implementations have some notable benefits over Touch ID, including no need for direct contact to unlock a device and faster unlock speeds, but there are also drawbacks such as poor functionality in low lighting and issues with performance following alcohol consumption and eye surgery.

DigiTimes is not always a reliable source of information, so the rumor should be viewed with some skepticism until confirmed, but KGI Securities analyst Ming-Chi Kuo also believes Apple is planning on introducing new biometric features in a future iPhone, which could include either facial or iris scanning. Kuo's rumor pertained to the 2017 iPhone, but it's always possible such an advanced feature won't be ready to debut until a later date.

There are no rumors about the 2018 iPhone as of yet, but it will follow the 2017 iPhone, which is rumored to feature radical design changes in the form of an edge-to-edge OLED display with no home button and a camera and Touch ID sensor that are integrated into the screen. Wireless charging, a faster A11 processor, and a fully glass body like the iPhone 4 are also possibilities for the device and will likely also be seen in the follow-up 2018 iPhone.

Apple has appointed former longtime executive Bob Mansfield, who last served as Senior Vice President of Technologies at the company, to oversee development of its widely rumored electric vehicle, according to The Wall Street Journal. All senior managers on the project now report to him.

Apple announced that Mansfield was retiring in June 2012, but a few months later said he would remain with the company as an advisor. He last worked on Apple's "Special Projects" team, reporting directly to CEO Tim Cook, and has made regular appearances on campus despite stepping down from day-to-day work four years ago.

Until recently, Mr. Mansfield—who, along with design chief Jony Ive, was one of the few executives to appear in Apple’s carefully-crafted product announcement videos—had all but retreated from the company aside from the occasional visit, these people said. Earlier this month, employees at Apple noticed in the company directory that all the senior managers on the car project were now reporting to Mr. Mansfield, they said.

Apple has reportedly recruited hundreds of engineers from the likes of Tesla, Ford, GM, and elsewhere to work on the so-called Apple Car, codenamed "Project Titan" internally. The electric vehicle could be street-ready between 2019 and 2021 according to various reports, with R&D based in Sunnyvale, California. Many question marks remain about the extent of the vehicle's design, autonomous capabilities, and other features.

Mansfield joined Apple in 1999 and has been instrumental in the company's recent success, overseeing the development of past MacBook Air, iPhone, and iPad designs. Under the Special Projects team, he also played a role behind the Apple Watch. His decision to remain at Apple in 2012 was influenced by both a generous compensation package and former iOS chief Scott Forstall's departure.

Apple will report its fiscal third quarter earnings results tomorrow, and both the company and analysts project a year-over-year decline in iPhone sales and overall revenue for a second consecutive quarter.

Apple expects third quarter revenue of between $41 billion and $43 billion, which would be up to 18 percent lower than the $49.6 billion in revenue it posted in the year-ago quarter. The consensus among analysts is around $42.1 billion in revenue, which is essentially the midpoint of Apple's guidance.

Analysts estimate that Apple sold at least another 40 million iPhones during the June quarter, raising lifetime sales of the smartphone to some 987 million. Applying that sales rate to July -- just over 13 million iPhones per month -- it is likely that Apple will have sold its billionth iPhone between now and the end of this month.

The milestone comes at a time when iPhone sales are on the decline for the first time since the smartphone launched in 2007, an arguably inevitable lull following the smash-hit success of the larger-screened iPhone 6 series. The decline has affected Apple shares, which are down around 21 percent from a 52-week high of $123.91.

Nevertheless, many Wall Street firms expect iPhone growth to resume in 2017. The good news could extend to Apple's stock, as The Wall Street Journal yesterday reported that its "shares have been punished more than enough" and are due for a rally. It said the decline in iPhone sales "appears priced in."

Still, Apple has been punished more than enough. The iPhone slump appears priced in. And while the next iPhone, expected later this year, likely won’t be a significant upgrade, there is optimism that sales growth will soon bounce back. Analysts forecast iPhone unit sales will rise 5% for fiscal 2017, which ends next September.

After briefly touching the $100 mark last week for the first time since early June, Apple shares are currently trading around the $98 mark, a price that some analysts feel undervalues the company.

Apple analyst Brian White of Drexel Hamilton reiterated his "buy" rating for AAPL today, based on a projected price target of $185. UBS analyst Steven Milunovich also issued a "buy" rating today with a 12-month price target of $115.

Apple is expected to introduce a wide range of new products in the second half of 2016 that could further raise its stock price, including the iPhone 7, Apple Watch 2, and long-awaited 2016 MacBook Pro.

Apple's third quarter earnings results will be released at 1:30 p.m. Pacific Time, followed by a conference call with CEO Tim Cook and CFO Luca Maestri at 2:00 p.m. Pacific Time. MacRumors will be providing live coverage of the news.

Update: BGC analyst Collin Gillis has, to the contrary, downgraded AAPL to a "sell" with a lower price target of $85. Apple shares are down nearly 1 percent in intraday trading, now hovering closer to the $97 mark.