MacRumors

After showing off the capabilities of its new 7th Generation Core, Kaby Lake, during the Intel Developer Forum earlier in the month, Intel corporate vice president Navin Shenoy today gave more details regarding the third "optimized" member of the 14 nm chip family following Broadwell and Skylake. In today's announcement -- focused on the speed and 4K UHD support the new CPUs provide -- Intel officially unveiled its first Y-Series and U-Series processors, which could be included in future Retina MacBook and MacBook Air updates, respectively.

The new Kaby Lake processors (prepared as a mid-generation update ahead of Intel's Cannonlake processors) offer a moderate upgrade on earlier Skylake chips, with Intel focusing on the user benefits of its 7th Generation Core processors. These advantages namely include: 4K ultra-HD video streaming, 360-videos, and more intensive graphical performance for video games on smaller computers.

In addition to gaining access to 4K content from services like YouTube and Netflix, Kaby Lake will grant users the power to create and edit their own 4K content with speeds up to 8x faster than a five-year-old PC. Kaby Lake was manufactured using an upgraded version of Intel's 14-nanometer process, referred to as 14nm+, which the company claims has produced a processor with 12 percent faster productivity performance and up to 19 percent faster web performance over previous generations.

Everyday users will see these manifested in smooth app switching, even within performance-heavy apps like 4K video editing software, and basic battery life improvements. In this department, Kaby Lake will bring up to 9.5 hours of playback on 4K videos in any computer it's found in this fall. The release of Kaby Lake will mark Intel's first processor released after the company abandoned its tick-tock release cycle, where "ticks" represented shrinking chip fabrication processes and "tocks" introduced new architectures.

The three Kaby Lake Y-Series processors announced today are suitable upgrades for the MacBook, which was just updated to Skylake chips in April and thus is not expected to see another upgrade in the near future. The three U-Series chips could potentially make their way into future MacBook Air models, assuming graphics performance is sufficient for Apple's needs. The new U-Series chips include Intel HD "GT2" graphics, while Apple has historically preferred to use chips with relatively higher-performance "GT3" graphics in the MacBook Air.

Apple is rumored to be launching updated MacBook Air models as soon as October, but it is unclear whether the machines will use Skylake or these new Kaby Lake chips, as the current models continue to run on earlier Broadwell chips.

More powerful mobile Kaby Lake chips with Iris graphics and desktop chips such as those appropriate for the MacBook Pro and iMac are expected to begin debuting in January, but Intel did not release a specific timeline or specs for those families.

Following the European Commission's ruling that Apple received illegal state aid from Ireland, and must pay $14.5 billion in back taxes to the country, the company has published a new FAQ that addresses potential concerns investors may have about the decision and the effect on its bottom line.

Apple started out by confirming the decision is not final and that it plans to appeal. The company is "confident" the ruling "will be overturned" by courts in the European Union, but it notes the process is "likely to take several years." In the meantime, Apple does not expect any near-term impact on its financial results.

How does this decision impact Apple’s near-term financial results?
Will you take a tax charge? Does this alter your previous guidance?
We do not expect any near-term impact on our financial results nor a restatement of previous results from this decision. We have previously accrued U.S. taxes related to the income in question. The tax rate guidance for Apple’s fourth fiscal quarter that we provided on July 26, 2016 does not change as a result of this decision.

Apple added that it does not currently expect the decision to have an impact on its tax rate or cash balance going forward, but the company anticipates it will place an unspecified amount of cash in an escrow account. Apple expects the amount will be reported as restricted cash on its balance sheet.

The European Commission's ruling followed a three-year inquiry into Apple's tax arrangements in Ireland, where it paid between 0.005% and 1% in taxes from 2003 through 2014, compared to the country's headline 12.5% corporate tax rate. Apple insists it "follows the law and pays all of the taxes" it owes.

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.

Japanese website Mac Otakara, which previously said Apple would introduce a darker color option to replace Space Gray for the upcoming iPhone 7 series, has shared a photo of an alleged SIM tray for the smartphone that suggests the color will be glossy black like the exterior of the 2013 Mac Pro.

The website now believes the new glossy black option will be part of a five-color lineup, including Gold, Rose Gold, Silver, and Space Gray. It previously said the new color will be a "much darker" variant of Space Gray that is "close to black, though not quite black," and mockups of what an iPhone 7 in that color could look like, including the one above, quickly surfaced around the web.

Apple has announced it will be holding a September 7 media event at 10:00 a.m. Pacific Time, at the Bill Graham Civic Auditorium in San Francisco, where it is expected to announce the iPhone 7 series, Apple Watch 2, and possibly more. Apple will also likely provide an update on the prospective launch dates of iOS 10, macOS Sierra, watchOS 3, and tvOS 10 over the coming weeks.

Tim Cook has posted an open letter on Apple's website in response to the European Commission's ruling that Apple must pay 13 billion euros ($14.5 billion) in back taxes dating from 2003 through 2014.

Cook's letter begins by discussing Apple's long history in Ireland, which dates back to a small facility that housed 60 employees in 1980. That statistic has now expanded to 6,000 employees across Ireland in total, benefiting both the company and local economies.

As it's grown, Cook says that Apple has become "the largest taxpayer in the world," and that "Apple follows the law and we pay all the taxes we owe." Directly confronting the European Commission's ruling, Cook claims that the EC has "launched an effort to rewrite Apple's history in Europe."

As responsible corporate citizens, we are also proud of our contributions to local economies across Europe, and to communities everywhere. As our business has grown over the years, we have become the largest taxpayer in Ireland, the largest taxpayer in the United States, and the largest taxpayer in the world.

Over the years, we received guidance from Irish tax authorities on how to comply correctly with Irish tax law — the same kind of guidance available to any company doing business there. In Ireland and in every country where we operate, Apple follows the law and we pay all the taxes we owe.

The Apple CEO points out that the claim -- stating Ireland gave Apple a "special deal" on its taxes -- is completely false and "has no basis in fact or in law." Cook thinks the commission's ruling also has the potential to set a dangerous precedent, because it is attempting to replace tangible Irish tax laws "with a view of what the Commission thinks the law should have been."

The opinion issued on August 30th alleges that Ireland gave Apple a special deal on our taxes. This claim has no basis in fact or in law. We never asked for, nor did we receive, any special deals. We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don't owe them any more than we've already paid.

Apple's next move is to appeal the Commission's ruling, which Ireland is said to be doing as well, with Cook remaining "confident" that the decision will ultimately be reversed and the company won't have to pay the 13 billion euros after all. Throughout all of the current drama and turmoil, Cook reiterates that Apple is "committed to Ireland" and that the company has no plans to stop investing in a future not only for its customers there, but its employees as well.

Read Cook's full letter about the European Commissions' ruling here.

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 must repay 13 billion euros ($14.5 billion) in back taxes dating back to 2003-2014, the European Commission has ruled (via BBC).

The Apple tax ruling was confirmed this morning, after the judgement was leaked to the media yesterday. In unequivocal wording, the EU commissioner Margrethe Vestager said Apple's tax benefits in Ireland are "illegal".

"The Commission has concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. This is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland must now recover the illegal aid."

Vestiges said this selective treatment allowed Apple to pay an effective corporate tax rate of 1 percent on its European profits in 2003 down to 0.005 percent in 2014. Therefore in 2014 Apple paid 0.005 percent tax on EU profits, which means that "For every million euros in profits, it (Apple) paid just €500 in taxes," said Vestager. "This is based on an in-depth investigation, it's based on the facts. I also think and hope that if it goes to the courts that it will be upheld by the European Court."

According to the EC's press release, the existing tax rulings endorsed a way to establish the taxable profits for two Irish incorporated companies of the Apple group (Apple Sales International and Apple Operations Europe), which did not correspond to economic reality:

"Almost all sales profits recorded by the two companies were internally attributed to a 'head office'. The Commission's assessment showed that these 'head offices' existed only on paper and could not have generated such profits. These profits allocated to the 'head offices" were not subject to tax in any country under specific provisions of the Irish tax law, which are no longer in force."

Ireland Finance Minister Noonan said the country "disagrees profoundly" with the back tax ruling by the European Commission. "The decision leaves me with no choice but to seek cabinet approval to appeal. This is necessary to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state aid rules into the sovereign member state competence of taxation," he said.

Apple shares fell more than 2 percent in pre-market trading following the ruling, which comes after a three-year investigation into Apple's tax arrangements in Ireland, where it was initially thought to have paid around 2 percent or less in taxes compared to the country's headline 12.5 percent corporate tax rate.

Update: Apple has reacted to today's ruling with the following response:

"The European Commission has launched an effort to rewrite Apple’s history in Europe, ignore Ireland’s tax laws and upend the international tax system in the process. The Commission’s case is not about how much Apple pays in taxes, it’s about which government collects the money. It will have a profound and harmful effect on investment and job creation in Europe. Apple follows the law and pays all of the taxes we owe wherever we operate. We will appeal and we are confident the decision will be overturned."

Apple CEO Tim Cook has also posted "A Message to the Apple Community in Europe" on the Apple website.

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.

The Eurasian Economic Union (EAEC) has issued new certificates for Apple products that suggest the company is set to release wireless earphones and multiple new versions of Apple Watch alongside the iPhone 7 and 7 Plus.

Manufacturers are required to certify electronic devices for sale in countries that are signed up to the EAEC treaty (ratified last year), which includes Russia, Belarus, Kazakhstan, and Armenia. Russian website iPhones.ru found a reference to "AirPods" along with other Apple certificates added to the regulatory body's digital products registry yesterday.

Last month, MacRumors revealed that an "AirPods" trademark filing discovered last October seemingly confirmed Apple's work on upcoming wireless earphones in lieu of a headphone jack on the iPhone 7. This latest regulatory certification appears to cement that finding, although whether Apple plans to bundle the AirPods with its new phones or sell them exclusively as a separate accessory is still unclear.

Elsewhere, the documents list several new certificates for Apple Watch (although oddly these are labelled as running watchOS 2, not watchOS 3, as would be expected for new models) and two certificates for products running iOS 10, likely indicating Apple's upcoming iPhone 7 and 7 Plus expected to be announced in a special event next week.

Apple may use the same event to debut its second-generation Apple Watch, said to include better waterproofing, better battery life, an improved processor, and a built-in GPS chip – but no cellular. Design changes are not expected for the next-generation Apple Watch, but new materials and new bands are always a possibility.

VMware today announced Fusion 8.5, Fusion Pro 8.5, Workstation Player 12.5 and Workstation Pro 12.5, the latest versions of its visualization software for running Windows on a Mac without using Boot Camp. Fusion and Fusion Pro 8.5 come with macOS Sierra support while both Fusion and Workstation suites come with Windows 10 Anniversary support.

Windows 10 Anniversary is a large upgrade to Microsoft's operating system, making Cortana smarter, allowing interactions with Android and Windows phones, more desktop apps and games in the Windows Store, a dark theme, Windows Edge extensions, click-to-play Flash and more.

Both Fusion 8.5 and Workstation 12.5 include Windows 10 Anniversary support and Windows 10 server support in addition to various bug fixes and performance improvements. The Fusion suite's Sierra support includes Siri integration and support for tabbed VM windows.

VMware also announced that it's giving away 20 Oculus Rift headsets to the general public. Entrants must tweet (using #FusionLove) a short video of themselves telling a story of how Fusion has helped them accomplished something. Meanwhile, registered attendees of VMworld 2016 will receive 18-months of Fusion or Workstation.

Current VMware Fusion 8.0 and Workstation 12.0 users can receive the 8.5 and 12.5 upgrades for free. However, users of pre-8.0 versions of Fusion and Fusion Pro can upgrade for $49 and $119 respectively, while users of pre-12.0 versions of Workstation Player and Workstation Pro can upgrade for $79 and $149 respectively. Upgrade pricing eligibility extends back to users of Fusion 4 and Workstation 7.

Fusion and Fusion Pro 8.5 are priced at $79.99 and $119.99 for new users while Workstation Player and Workstation Pro 12.5 have new-user prices of $149.99 and $249.99 respectively. Both Fusion and Workstation can be purchased at VMWare's online store.

Apple today made a submission to the Australian Competition & Consumer Commission (ACCC), arguing that Australia's "Big Three" banks' request to collectively negotiate over Apple Pay is ultimately harmful to consumers, would stifle innovation in mobile payments, and would avoid competitive dynamics (via AppleInsider).

The Cupertino company argues that each of the big three banks (Commonwealth Bank, National Australia Bank (NAB) and Westpac) have resisted "serious engagement" with Apple on Apple Pay for the past two years.

Apple claims that they have tried and failed to negotiate with all of the banks, save for one bank who refuses to sign a confidentiality agreement that would allow Apple to send over its initial terms. Apple says that collective bargaining would slow negotiations further, dragging the collective to the level of the least willing member.

The collective, Apple argues, means that each of the banks has no fear of its competitors offering Apple Pay. Thus, the banks wouldn't fear a potential loss of consumers over the feature. This harms consumers by avoiding competitive dynamics, according to Apple.

The move would also stifle innovation in mobile payments, erasing incentives for existing players in Australia to build on top of or compete with Apple Pay. However, a spokesman for the banks told AppleInsider that they, alongside Australia's merchants and payment processors, have been working on contactless payments before Apple Pay.

The banks say that, unlike Android or Samsung, Apple blocks access to NFC payments and "wants to leave users with no choice but to use Apple Pay." They want to negotiate with Apple to offer other integrated wallets within Apple Pay. Last week, Australia's retailers and payment processors sided with the banks to collectively negotiate.

Apple's submission comes 10 days after the ACCC denied interim approval of the collective negotiations. The banks first issued their joint application in late July. The ACCC will make a final decision in October. Most recently, Australian bank ANZ expanded support for Apple Pay to MasterCard, adding to the already-supported Visa and American Express.

Apple is planning to refresh its Mac lineup, including the MacBook Pro and MacBook Air, as early as October, according to Bloomberg. The report also claims Apple is working on a standalone 5K display in partnership with LG Electronics, while it plans to update iMac models with an option for new graphics chips from AMD.

The report reiterates that the new MacBook Pro will be thinner and include an OLED-based touchscreen strip along the top of the flatter keyboard, which will present functions that dynamically fit the current task or application, as well as integrate Touch ID to enable users to quickly log in using their fingerprint.

For example, if a user is on their desktop, the screen will show a virtual representation of the standard function row, which includes brightness and media controls. When in an application, the virtual row will show options specific to the task at hand, but volume controls and a switch to show the default functions will always be present.

Apple has reportedly named the feature "Dynamic Function Row" internally, but its official name may differ when announced.

The tweaked MacBook Air models, meanwhile, are said to include multipurpose USB-C ports, which makes the inclusion of Thunderbolt 3 a possibility. No other details were shared about the planned MacBook Air and iMac refreshes.

Apple's plans to work with LG on a standalone 5K display surface two months after it discontinued the five-year-old Thunderbolt Display. It remains unclear if the monitor will be based upon the Retina 5K iMac, and it is also unclear if the report's broad late 2016 timeframe for "some of the new Mac products" includes the display.

The report makes it nearly certain that the focus of Apple's just-announced September 7 media event will be on the iPhone 7 and the second-generation Apple Watch, the latter of which has now been confirmed for the event. Apple will also provide updates about its software, including iOS 10, macOS Sierra, watchOS 3, and tvOS 10.

Apple is planning new hardware and software features for iPad that cater to professional users, according to Bloomberg, including a new iPad with faster display technology that allows for smoother on-screen zooming, panning, and scrolling.

KGI Securities analyst Ming-Chi Kuo previously said Apple will release a 10.5-inch iPad Pro model next year alongside a 12.9-inch iPad Pro 2 and a "low-cost" 9.7-inch iPad model. The fate of the iPad mini remains uncertain, but it is presumable that Apple could discontinue the 7.9-inch tablet due to its lack of Apple Pencil support and relatively close proximity in size to 5.5-inch Plus-sized iPhones.

The new hardware will be completed by wider iOS support for the Apple Pencil, the report adds. Apple is reportedly planning to introduce the new software features in a subsequent iOS 10 update in the first half of 2017, but may decide to hold back on the improvements until iOS 11 is released later in the year.

Apple has considered allowing users to annotate objects in many applications across the whole operating system, including in Mail, the Safari web browser, and iMessage, similar to what Samsung Electronics Co. offers on its Note smartphones, the person said. Currently, Apple only supports Pencil functionality in specifically developed apps.

Apple saw its iPad revenue grow slightly for the first time in 10 quarters in July, and these improvements could help the company continue that trend.

Apple today released the eighth beta of macOS Sierra, the newest operating system designed for the Mac, to developers. Public beta testers have also been provided with their seventh beta version. macOS Sierra beta 8 comes one week after the release of the seventh beta and more than two months after the software was first unveiled at Apple's 2016 Worldwide Developers Conference.

Developers and public beta testers can download today's update through the Software Update mechanism in the Mac App Store. Developers can also download the beta from the Apple Developer Center.

macOS Sierra is a major update that brings Siri to the Mac for the first time, allowing users to conduct voice searches to quickly find files, look up information, and more. New Continuity features offer an "Auto Unlock" option for unlocking a Mac with an Apple Watch and a "Universal Clipboard" for copying text on one Apple device and pasting it on another.

Deeper iCloud integration allows files stored on the desktop or the Documents folder of a Mac to be accessed on all of a user's devices, and Photos features deep learning algorithms for improved facial, object, and scene recognition. There's also a Memories feature for displaying photo collections, and Messages has rich links, bigger emoji, and "Tapback" response options.

Apple Pay is coming to the web in macOS Sierra, with payments authenticated through an iPhone or Apple Watch, and new features like multiple tabs, Picture in Picture multitasking, optimized storage, and revamped emoji are also available.

macOS Sierra is currently available to developers and public beta testers, and it will see a wider public release this fall, with Apple possibly announcing a release date at its September 7 media event. For full details on all of the new features included in macOS Sierra, make sure to check out our macOS Sierra roundup.

Ahead of Apple's "See You on the 7th" special event next Wednesday, September 7 at 10:00 a.m. Pacific Time, Siri is now offering up some traditionally witty responses to users that mention the tagline for the upcoming event. iPhone users can test Siri themselves by saying "see you on the seventh."

Apple sent out media invites earlier today for the event, to be held at the Bill Graham Civic Auditorium in San Francisco, California. There, Apple CEO Tim Cook and other senior executives are expected to announce the iPhone 7 and possibly a second-generation Apple Watch. Less likely is a new MacBook Pro, expected later in the year, but a September announcement cannot be ruled out entirely.

Apple will also likely provide an update on the prospective launch dates of iOS 10, macOS Sierra, watchOS 3, and tvOS 10.