MacRumors

Amid a continuing decline in worldwide PC shipments, Apple's Mac sales are up slightly, according to new PC shipping estimates shared today by Gartner.

During the first quarter of 2017, Apple shipped an estimated 4.2 million Macs worldwide, up from 4 million in the year-ago quarter for an estimated growth of 4.5 percent. During the quarter, Apple held 6.8 percent of the market, up from 6.3 percent during the first quarter of 2016, allowing the company to hold on to its position as the number five PC vendor in the world.

Lenovo, HP, and Dell, the top three worldwide PC vendors, saw shipment growth during the quarter. Lenovo shipped an estimated 12.4 million PCs for 20 percent of the market (1.2 percent growth), HP shipped an estimated 12.1 million PCs for 19.5 percent of the market (6.5 percent growth), and Dell shipped 9.4 million PCs for an estimated 15 percent of the market (3.4 percent growth).

Asus, the number four PC vendor in the world, saw a sharp decline in growth, shipping only an estimated 4.5 million PCs compared to 5.3 million during the first quarter of 2016. Acer and the "Other" group composed of smaller manufacturers also saw declines.

According to Gartner, overall worldwide PC shipments totaled 62.2 million units, a 2.4 decline compared to the first quarter of 2016.

"While the consumer market will continue to shrink, maintaining a strong position in the business market will be critical to keep sustainable growth in the PC market. Winners in the business segment will ultimately be the survivors in this shrinking market," said Mikako Kitagawa, principal analyst at Gartner. "Vendors who do not have a strong presence in the business market will encounter major problems, and they will be forced to exit the PC market in the next five years. However, there will also be specialized niche players with purpose-built PCs, such as gaming PCs and ruggedized laptops."

"The top three vendors -- Lenovo, HP and Dell -- will battle for the large-enterprise segment. The market has extremely limited opportunities for vendors below the top three, with the exception of Apple, which has a solid customer base in specific verticals."

In the United States, PC shipments totaled 12.3 million units in 1Q 2017, also a 2.4 percent decline compared to 1Q 2016. Apple is the number four PC vendor in the United States, shipping an estimated 1.47 million Macs (for 12 percent market share), a slight decline from the 1.48 million Macs shipped in the first quarter of 2016.

While HP saw 16 percent growth in the United States with an estimated 3.6 million shipments, shipments were down for Dell (3.2M), Lenovo (1.7M), and Asus (503,000).

IDC also released its PC market shipment estimates today, and as per usual, its numbers tell a different story, in part because of the difference in the way tablets are counted by each firm.

According to IDC, the PC market saw its first growth in five years, with worldwide shipments totaling 60.3 million in the first quarter of 2017 for year-over-year growth of 0.6 percent. IDC's estimates for Apple are similar to Gartner's, with IDC suggesting worldwide Mac shipments of 4.2 million units, up from 4 million in the year-ago quarter for 4.1 percent growth.

It's important to note that data from Gartner and IDC is preliminary and that the numbers can shift, sometimes dramatically and sometimes less so. Last year, for example, Gartner estimated Mac shipments of 4.6 million in the first quarter of 2016, but the actual number was just over 4 million.

New York University graduate student Dejian Zeng spent last summer working in a Pegatron factory manufacturing the iPhone 6s and 7 as part of a summer project, where he got a first hand look at what factory life is like for a worker in China.

Zeng did a extensive, detailed interview with Business Insider, where he shared his experience and offered up an inside glimpse at how factories like Pegatron work.

When he first arrived at the factory, Zeng's job was in final assembly. His sole task was to put a sticker on the back of the iPhone 6s and add a screw, over and over again, a process that he said was "very boring."

Employees at Pegatron are not allowed to bring in electronic devices, so there's no entertainment like music. Strict security measures are in place, including metal detectors, preventing outside devices from entering the factory.

While Zeng started out assembling the iPhone 6s, the factory switched over to the iPhone 7 in August ahead of its September launch, providing an interesting look at how security ramps up when an unreleased device is being manufactured.

According to Zeng, once the iPhone 7 was in trial production, the sensitivity of the metal detectors was ramped up, with no metal, including the metal of underwire bras, allowed through. Two security checks were also required, and new assembly line infrastructure had to be built. Apple employees were also on hand to keep an eye out for issues.

When we were producing the iPhone 7, they have Apple staff there every single day to monitor the process because it's a new product they want to see if there are new problems.

The management of the factory becomes very, very careful. It needs to be very, very clean. All the case holders need to be in the exact position of where they should be. The process changed a lot because it used to be just an assembly line. They made it a clean room, like they want to keep the dust out.

Zeng earned the equivalent of $450 for a month of work, including overtime pay, for working up to 12 hours per day. Because of unpaid breaks, he was only paid for 10.5 hours. He was also provided with housing in a dorm with multiple other employees, but he had to pay for meals. At $450 per month, Zeng did not earn anywhere near enough to purchase one of the devices he was assembling, and he said most of his coworkers used Chinese smartphones from Oppo or similar brands rather than an iPhone.

Still, he said some factory workers considered producing the unreleased iPhone "as a very cool thing," and everyone knew they were working on an upcoming device. Factory jobs, he said, weren't hated, but weren't liked, and turnover rates were "very high." "It's very normal for workers to leave after two weeks or a month," he said.

We just consider it a job that can give us money. Nobody enjoys the process because the purpose of getting to work is waiting to get out.

The only thing that we're thinking about is really money, money, money. I need to get some money from my family, I need to support my life, support my kids.

On the subject of safety training, Zeng said Pegatron was "very careful" and the training was thorough. Workers only get two days of training, though, with most of the focus on safety, and they're also required to download a special app designed by Apple that includes additional training documents and information on overtime. Pegatron, he said, did seem to keep an eye out for safety issues and other problems like underage workers.

According to an Apple spokesperson that spoke to Business Insider, Apple has employees on the ground at the Pegatron facility every day and performs regular audits to make sure employees aren't working more than 60 hours. Apple also pointed out that wages at Pegatron have increased 50 percent over the last five years and are higher than the Shanghai minimum wage.

Zeng, who originally visited the factory in anticipation of a worker strike due to reduced wages and the elimination of bonuses, says his experience at the factory has affirmed that his plan for a career in human rights advocacy is the right choice.

Zeng's full interview with Business Insider, which goes into much more detail on working conditions, employee routines, living quarters, food, overtime pay, safety procedures, and more, is well worth checking out.

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 today provided its public beta testing group with the second beta of iOS 10.3.2, nearly two weeks after seeding the first iOS 10.3.2 beta and a day after releasing the second beta to developers. iOS 10.3.2 comes shortly after the release of iOS 10.3, a major update that brought features like a new Find My AirPods feature and Apple File System, and iOS 10.3.1, a minor security update.

Beta testers who have signed up for Apple’s beta testing program will receive the iOS 10.3.2 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.

According to Apple’s release notes, the iOS 10.3.2 update fixes SiriKit car commands, which should now be working as expected. Aside from the SiriKit fix, we don’t know what other bug fixes and improvements are included, as nothing notable has been discovered in the betas we’ve received so far.

As a minor 10.x.x update, iOS 10.3.2 likely focuses on bug fixes, performance improvements, and security enhancements rather than outward-facing features.

Samsung topped Apple as the world's largest smartphone maker in the first quarter, as it continues to show signs of recovery following its disastrous Galaxy Note7 recall last year, according to Taiwanese research firm TrendForce.

Samsung reclaimed the number one spot with an estimated 26.1 percent market share, trailed by Apple at an estimated 16.9 percent, said TrendForce. Chinese vendor Huawei, which aims to become the world's largest smartphone maker within four years, finished third with an estimated 11.4 percent market share.

Samsung is traditionally the world's largest smartphone maker, as it sells millions of inexpensive smartphones alongside its flagship devices, so this would normally be no surprise. However, after Samsung recalled the Galaxy Note7 due to defective batteries, Apple overtook its South Korean rival in the fourth quarter.

While the worst might be over for Samsung now, TrendForce said the company's sales results for its high-end smartphones still "fell short of expectations" in the first quarter, as consumer confidence in the brand had "yet to fully recover" from Galaxy Note7 recall and subsequent discontinuation in the fall.

Nevertheless, Samsung's continued success in the mid-range and low-end segments of the market allowed it to reclaim its crown.

The economically priced, high-performing Galaxy J series sustained Samsung’s shipments and contributed significantly to the expansion of the brand’s overall smartphone production volume. Samsung was the only brand that saw positive growth in production volume during the off season of the first quarter.

Samsung's focus has now shifted towards the Galaxy S8, set to launch later this month. The smartphone features an edge-to-edge 5.8-inch display with no physical home button, foreshadowing the rumored design of the tentatively named iPhone 8. And it shouldn't catch on fire like the Galaxy Note7, as Samsung now performs an 8-point battery check on all of its smartphones.

It's important to recognize that these are estimated figures only, and that shipments do not necessarily reflect sales to customers.

Apple will officially report its iPhone sales figures for the first quarter, corresponding with the second quarter of its 2017 fiscal year, on May 2.

Dialog Semiconductor shares plunged to their lowest price in over 16 years on Monday, after an industry analyst predicted Apple will drop the supplier and move to its own in-house power management chips for iPhones by 2019.

The prediction comes from analyst Karsten Iltgen at German investment bank Bankhaus Lampe, who said that Apple will at the very least cut back to some degree on Dialog's supply of power management chips for the iPhone, according to a research note obtained by Bloomberg.

“There is strong evidence that Apple is developing its own power-management integrated circuits and intends to replace the chip made by Dialog at least in part,” Karsten Iltgen, analyst at Bankhaus Lampe, said in a research note published Tuesday. A shift to Apple developing its own chips in-house is unlikely in the short term, he said.

“We believe that Apple is setting up power-management design centers in Munich and California,” said Iltgen. “We hear from the industry that about 80 engineers at Apple are already working on a PMIC with specific plans to employ it in the iPhone by as early as 2019.”

According to Iltgen, Apple is setting up its own power management chip design centers in Munich and California, and up to 80 Apple engineers are said to already be working on its own PMIC (power management integrated circuit) component. However, he said Apple dropping Dialog "is unlikely in the short term."

Dialog's website says its integrated power management component results in up to 30% longer battery life:

Dialog replaces multiple discrete power management components with one highly integrated device, enabling our customers to produce lighter and thinner portable applications with higher power efficiency resulting in longer battery life.

These single chip solutions reduce energy usage and provide a simple, yet flexible, design at a lower cost. Typical usage tests show our Power Management Integrated Circuits (PMICs) are able to decrease the power consumption of a portable device by up to 30%.

The analyst noted that Apple has steadily hired engineers from the United Kingdom-based Dialog over the past year, from the chipmaker's pool of about 1,300 engineers, but a person familiar with the situation noted that "it isn't unusual" to see employees flowing between Apple and its supplier.

However, last week Apple announced that it was planning to stop using the graphics processing chips supplied by Imagination Technology in its iPhones within two years, and Bloomberg noted that, ahead of that decision, Apple had hired "several people" from Imagination to help craft its in-house technology.

If Apple does make the same decision with Dialog Semiconductor as it did with Imagination Technologies, the former company could see as much as three quarters of its business gone over the next few years, as it's believed that Dialog gets as much as 74 percent of its sales from Apple.

Some analysts don't believe that it will ever come to that and disagree with Iltgen's prediction, as Barclays analyst Andrew Gardiner recently mentioned in a research note that he does "not see [Dialog] remotely in a similar position" as Imagination. Dialog shares remained down around 16 percent on Tuesday.

Not everyone agrees that Dialog is at risk. “We do not see them remotely in a similar position," said Andrew Gardiner, an analyst at Barclays Plc, in a research note. "We acknowledge Apple’s continued hiring of engineers, in power management and elsewhere, but an additional 80 engineers hired in this area pales in comparison to the over 1,300 engineers Dialog employed at the end of last year."

Last year Dialog entered the news when a Fast Company report mentioned the supplier's $10 million investment in wireless technology company Energous, adding to recent rumors that Apple and its suppliers were gearing up to implement some form of wireless charging into a future line of iPhones.

Energous has said that its first truly wireless charging technology will arrive later in 2017, but in regards to the iPhone's wireless charging it's believed that Apple is again looking in-house to craft an inductive charger for the iPhone as it did for the Apple Watch, rather than using a truly wireless solution.

Qualcomm today announced it has countersued Apple in the U.S. District Court for the Southern District of California, nearly three months after the iPhone maker sued the chipmaker for $1 billion in alleged unpaid royalty rebates. Apple also accused Qualcomm of engaging in anticompetitive licensing practices.

Qualcomm, which earlier called Apple's lawsuit "baseless," officially denied the majority of Apple's allegations, and accused the Cupertino-based company of failing to engage in good faith negotiations for a license to its 3G and 4G standard essential patents on fair, reasonable, and non-discriminatory terms.

The chipmaker also accused Apple of breaching its licensing agreements, making false statements, and encouraging regulatory attacks on its business in multiple countries. Qualcomm added that Apple has deliberately "chose not to utilize the full performance" of its LTE modem in its iPhone 7 and iPhone 7 Plus.

Apple uses Intel's XMM7360 and Qualcomm's Snapdragon X12 modems for GSM and CDMA models of the iPhone 7 respectively. Independent testing last year found Qualcomm's LTE chip to significantly outperform Intel's LTE chip in the iPhone 7, but it could theoretically be even faster.

Apple, however, said there is "no discernible difference" in performance between the Qualcomm and Intel modems in any of the models.

Qualcomm said Apple's statement misrepresented the performance disparity between iPhones using its modems and those using Intel-supplied modems. Apple then allegedly threatened Qualcomm about making any public comparisons about the apparently superior performance of the Qualcomm-powered iPhones.

Qualcomm, the exclusive supplier of 3G and LTE modems for iPhones until 2016, said Apple has "launched a global attack" against its company, using its "enormous market power" to coerce unfair and unreasonable licensing terms. The chipmaker insists that it will "vigorously defend" its business model.

“Over the last ten years, Apple has played a significant role in bringing the benefits of mobile technology to consumers with its popular products and services," said Don Rosenberg, executive vice president and general counsel of Qualcomm. "But Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90 percent of smartphone profits, without relying upon Qualcomm's fundamental cellular technologies. Now, after a decade of historic growth, Apple refuses to acknowledge the well established and continuing value of those technologies. It has launched a global attack on Qualcomm and is attempting to use its enormous market power to coerce unfair and unreasonable license terms from Qualcomm. We intend to vigorously defend our business model, and pursue our right to protect and receive fair value for our technological contributions to the industry.”

Qualcomm said Apple "could not have built the incredible iPhone franchise" without relying upon Qualcomm's "fundamental cellular technologies." In its countersuit, Qualcomm went as far as saying Apple has "contributed virtually nothing to the development of core cellular technology."

Apple is the world's most profitable seller of cellular devices. But as a late-comer to the cellular industry, Apple contributed virtually nothing to the development of core cellular technology. Instead, Apple's products rely heavily on the cellular inventions of Qualcomm and others. Apple's iPhones and other products enjoy enormous commercial success, but without lightning-fast cellular connectivity—enabled in large part by Qualcomm's inventions—Apple's iPhones would lose much of their consumer appeal.

Qualcomm is seeking, among other things, both compensatory and punitive damages from Apple in amounts to be proven in a jury trial for "reneging on its promises in several agreements." It is also seeking to be released from any obligation to make further payments to Apple, per the court filing.

Apple for its part accused Qualcomm of using its position as the supplier of a key iPhone component to drive up patent licensing fees. In January, the Federal Trade Commission alleged that Qualcomm required Apple to exclusively use its modems from 2011 to 2016 in exchange for lower patent royalties.

The iPhone continues to be the most popular smartphone among teens, according to data gathered by investment firm Piper Jaffray in its most recent semiannual U.S. teen survey.

76 percent of teens surveyed own an iPhone, up from 69 percent in the spring of 2016, and the highest ownership level seen in the teen survey. A record 81 percent of teens surveyed said they expect their next phone to be an iPhone, up from 75 percent a year ago.

Piper Jaffray attributes the jump in interest to the upcoming 2017 iPhone, which is expected to include an OLED display with an edge-to-edge design, a glass body, a faster A11 processor, no Home button, and wireless charging capabilities.

Apple continued to grow smartphone share among teens with 76% of teens owning an iPhone vs 74% in Fall-16. We view the survey as a positive data point on iPhone 7 demand and excitement around the upcoming launch of the 10th anniversary iPhone (iPhone X)

Teen interest in smart watches has also continued to grow, with interest in the Apple Watch up slightly. 13 percent of teens surveyed said they plan to buy an Apple Watch in the next six months, compared to 11 percent in the spring of 2016.

Among fitness bands, the Apple Watch is the second most popular choice after Fitbit. 71 percent of teens said they prefer the Fitbit, while 10 percent chose the Apple Watch. Nine percent preferred Nike-branded fitness bands, while four percent preferred Garmin.

While iPhone adoption among teens could see significant growth in the fall with the release of a new line of iPhones with exciting new features, Apple Watch growth may remain stagnant as rumors have thus far not pointed towards major changes.

For the teen survey, Piper Jaffray accumulated responses from 5,500 teens in the United States with an average age of 16.