MacRumors

KGI Securities analyst Ming-Chi Kuo has released a new research report outlining why he believes Apple has shifted its focus from its original rumored car project in favor of augmented reality technology.

According to Kuo, reports that Apple has turned its attention to developing a software-based autonomous driving system "make sense", given that the system will support augmented reality and provide an "innovative user experience".

All of Apple’s past successes were related to human-machine interfaces, such as mouse for Mac, click wheel for iPod, and multi-touch for iPhone and iPad.

Assuming Apple successfully develops AR, we predict the firm will enjoy the following competitive advantages: (1) redefining existing key products and leading competitors by three to five years. For instance, this could happen for iPhone, iPad and Mac; (2) eliminating obstacles of Apple Watch and Apple TV by offering an innovative user experience; and (3) entering new business fields, such as autonomous driving system.

We expect Apple to generate preliminary results for AR in the next 1-2 years at the earliest and working with iPhone may be the first step.

Kuo thinks the AR market will increase significantly in 2018 and will replace VR to become the mainstream market focus as Apple enters the field. Kuo predicts the AR and VR markets combined will grow from $40-50 billion in 2018 to $150 billion in 2020, with the majority increase coming from AR.

Apple's increased interest in augmented reality is no secret. CEO Tim Cook has spoken about AR on a number of occasions over recent months, hinting that the company's approach to AR should encourage, not replace, human contact.

In July, Cook said Apple was "high on AR in the long run" and that the company continues "to invest a lot in [AR]." He said he believes augmented reality "can be huge," and in August, he called it a "core technology", while in September Cook said he believes that between VR and AR, the latter "is the larger of the two," because it allows people to "be very present," engaging with one another while having other visual things to see.

According to rumors, Apple has a research team working on augmented and virtual reality, exploring the AR/VR field and investigating how the company could embrace augmented or virtual reality in the future. Apple has reportedly built prototype virtual reality headsets, but Cook's continued comments on augmented reality indicate Apple is more heavily invested in that technology.

Less than a week ago Apple unveiled its new MacBook Pro line-up, with the focus of its "Hello again" event centering on the OLED Touch Bar that replaces the function keys on the company's 13-inch and 15-inch flagship models.

Initial media reaction to Apple's event was positive, and most journalists in attendance were impressed after their limited hands-on time with the new machines. "There's all kinds of love for the new MacBook Pro," reported The Loop the following morning, in a post citing quotes from several leading tech sites.

Over the weekend, however, evidence mounted of a backlash within sections of the online Mac community in response to Apple's latest announcements. In a blog post on his site titled "New MacBook Pros and the State of the Mac", developer Michael Tsai collated and linked to the most commonly aired grievances. The post has since become a common point of reference in the blogosphere for negative sentiment toward Apple following last week's event.

In his original post, Tsai said he was "disappointed" with Apple's announcements for the Mac, which made him feel as if Cupertino had either "lost touch" with what developers and creative professionals want, or Apple "simply doesn't care about those customers".

There's nothing particularly wrong with what Apple announced. I like Thunderbolt 3. The display looks good. I'm not crazy about Touch Bar, but it does seem potentially useful. The problem is that the MacBook Pro is not a true Pro notebook.

My Retina MacBook Pro is almost 4.5 years old. I've been wanting to upgrade it for a while and was planning to do so today. After seeing what was announced, I'm no longer sure that I want a MacBook Pro as my main computer.

The subsequent catalog of grievances largely mirror Tsai's own complaints, which include the "premium price" of a "Pro" MacBook limited to 16GB RAM, the prioritization of "thinness and lightness" over CPU and graphics performance, and Apple's "neglect" of other sections of its Mac product line. Tsai concludes: "It has seemed clear for a while that the CEO doesn't really understand the Mac, or simply doesn't like it that much, and that's a problem for those of us who do."

On Monday, both The Loop and Daring Fireball highlighted Tsai's post, noting its growing inventory of criticisms. The Loop said the list contained "a lot of fair complaints" that are "insights... worth paying attention to". Daring Fireball's John Gruber called the extent of the backlash "astounding" and described Tsai's collection of quotes as "must-read stuff".

In another widely shared article titled "How Apple could have avoided much of the controversy", developer Chuq Von Rospach wrote that while much of the criticism ignores "a lot of the positives" in Apple's latest announcements, the company should have at least mentioned upcoming updates to the rest of its product line, which would "have muted a lot of the anger".

Von Rospach goes on to speculate about what those updates might be, broaches some of the issues regarding Apple's new notebooks (the 16GB RAM ceiling, an increase in dongles) and concludes by suggesting that creative professionals need to realize the Mac line has become a "niche product" in a world driven by market forces where Apple technology has gone mainstream. The full article can be read here.

The impassioned online debate comes at an important time for Apple, which hopes to boost interest in a lukewarm computer market this holiday season, following the company's first reported full-year revenue decline since 2001. Its Touch Bar enabled 13-inch and 15-inch MacBook Pro notebooks are expected to ship in late November. Meanwhile, the new 13-inch MacBook Pro sans Touch Bar is already shipping to customers and more comprehensive reviews of Apple's lower-spec notebook are expected this week.

Following its "Hello Again" Mac event last week, Apple quietly dropped the prices on higher-capacity storage upgrades across its Mac lineup. 512GB and 1TB SSD build-to-order upgrade options for the MacBook Air, iMac, Mac Pro, Mac mini, and 2015 MacBook Pro are now priced up to $200 less, bring the costs in line with upgrade options on the new MacBook Pro models.

Prior to the event, 512GB storage upgrade options were priced at $300-$400 for most entry-level machines, while a 1TB upgrade was priced at $800 to $900. With the price drop, upgrading to 512GB of storage costs an extra $200-$300, while upgrading to 1TB costs $600-$700.

On the higher-end 13-inch MacBook Air, for example, the default 256GB SSD option can be upgraded to 512GB for $200, $100 less than it cost earlier this year.

Upgrading the entry-level 27-inch iMac to 512GB of flash storage previously cost $500, but the price has dropped to $400. Upgrading the mid-range iMac 27-inch iMac to 512GB or 1TB of storage used to cost $400 or $900, respectively, but prices are now at $300 for the 512GB upgrade and $700 for the 1TB flash storage upgrade. On the most expensive 27-inch iMac, upgrading to 1TB storage now costs $100 less.

On the high-end Mac mini, prices have dropped to $200 for the 512GB flash storage option and $600 for the 1TB flash storage option, and the same prices are available on both Mac Pro models, a savings of $100 for 512GB and $200 for 1TB.

For 2015 MacBook Pro models, the 15-inch MacBook Pro storage upgrade options are also priced at $200 for 512GB and $600 for 1TB, down from $300 and $800. Upgrade options for the 13-inch machine are new and are priced somewhat higher at $200 for 256GB, $400 for 512GB, and $800 for 1TB.

Much to the disappointment of many Mac users, the MacBook Pro was the only machine to see an update at Apple's fall event. The iMac, Mac Pro, and Mac mini have not seen a refresh, and no new machines are expected before the end of the year.

While an iMac refresh is rumored for the first half of 2017, there's no word on when the Mac Pro and the Mac mini, both of which have not been refreshed in several years, could receive updates. Apple is also expected to phase out the MacBook Air, replacing it with the MacBook and the MacBook Pro.

(Thanks, Marek!)

In line with the 12-inch MacBook, Apple has removed all ports on the new MacBook Pro beyond two or four Thunderbolt 3 ports and a 3.5mm headphone jack.

Thunderbolt 3 carries power, USB, DisplayPort, HDMI, and VGA over a single USB-C port, creating one standard for connecting most accessories and peripherals.

The issue for now, however, is not all devices are equipped with USB-C ports. Apple's very own iOS devices, for example, use a proprietary Lightning port instead.

More USB-C accessories will inevitably be released over the coming months and years, but in the meantime, many new MacBook Pro users will need to purchase at least one dongle or hub to use the notebook with their current setup. Own an iPhone? You need a new cable. Own a Thunderbolt Display? You need an adapter.

Below, we have rounded up some of the USB-C adapters and cables available from Apple and third-party accessory makers.

Apple

Thunderbolt 3 to Thunderbolt 1/2 Adapter — $49

This adapter can be used to connect the new MacBook Pro to Thunderbolt or Thunderbolt 2 peripherals. Examples include Apple's discontinued Thunderbolt Display and older Thunderbolt external storage drives.

The adapter can also be used to connect the new MacBook Pro to Apple's Thunderbolt to Gigabit Ethernet Adapter and Thunderbolt to FireWire Adapter. Tip: Belkin sells a direct USB-C to Gigabit Ethernet adapter for $34.95.

The adapter is bidirectional, so it can be used reversely to connect new Thunderbolt 3 devices to an older Mac with a Thunderbolt or Thunderbolt 2 port.

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USB-C Charge Cable — $25

Have you ordered a new MacBook Pro and also own an iPhone? You can't connect the two devices out of the box without purchasing an additional adapter or cable. One of those options is Apple's own USB-C to Lightning cable.

The cable can be used to charge and sync any Lightning-equipped iPhone, iPad, or iPod touch with USB-C devices like the new MacBook Pro. A 1-meter cable is available for $25, while a 2-meter version costs $35.

Few if any third-party Lightning to USB-C cables authorized under Apple's MFi Program are currently available.

Tip: An alternative option is to purchase a USB-C adapter or hub with at least one USB-A port and then use a traditional Lightning to USB cable — see below.

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Apple today seeded the first beta of an upcoming iOS 10.2 update to public beta testers for testing purposes, just one over one week after releasing the first major iOS 10 update, iOS 10.1, and one day after providing the iOS 10.2 beta to developers.

Beta testers who have signed up for Apple's beta testing program will receive the iOS 10 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.

iOS 10.2, as a major 10.x update, includes several new features to enhance iOS 10. New emoji have been added, introducing Unicode 9 characters like clown face, drooling face, selfie, face palm, fox face, owl, shark, butterfly, avocado, pancakes, croissant, and more, plus many profession emoji available in both male and female genders.

Apple has also updated the artwork on many existing emoji, adding detail and making them look less cartoonish and more realistic. In addition to new emoji, the 10.2 update includes new wallpaper, new Music sorting options, a new "Celebrate" Screen Effect," an option for preserving camera settings, a Videos widget, and more.

Following the confirmation that Apple has delayed its wireless "AirPods" beyond the original late October launch window, foreign supply chain sources are now pointing towards a launch date in January 2017, and not the late 2016 estimation that many believed would help the Bluetooth device sell during the holidays.

The news comes from Chinese-language Economic Daily News (via DigiTimes), which cites market watchers who believe AirPods manufacturing supplier Inventec will see a profit boost in January because of the new launch date for the device.

Apple originally planned to release the AirPods at the end of October, but has postponed release. Inventec is expected to begin shipping AirPods in January 2017, the paper noted.

Because of AirPods orders, Inventec's revenue is expected to grow 7 percent in 2017, to reach around $23.83 billion, while its earnings per share are also estimated to increase by 35 percent. Its Q4 2016 earnings will be mainly in its PC supplier business, which will "stay flat" from the third quarter output of around 4.85 million units shipped.

The connection between Inventec and AirPods first came in a report by KGI Securities analyst Ming-Chi Kuo in September. Apple then announced the device during its September 7 iPhone 7 event, where it confirmed the headphones have up to 5 hours of music playback and high-quality sound through a "seamless and automatic connection" between devices, as well as a battery case that includes up to 24 hours of charge.

iFixit has published a teardown of the new 13-inch MacBook Pro without Touch Bar, which the site calls the "Escape Edition" because of its adherence to the traditional row of function keys, along with a tangible Escape key. In the teardown, iFixit delves deeper into the MacBook Pro, uncovering a battery that is 27 percent less powerful than last year's model, along with the Butterfly 2.0 keyboard that's been slightly updated since the 2015 MacBook.

After removing the extra-large new trackpad from the body of the laptop, iFixit gets a better look at the MacBook's battery. Rated for 54.5 watt hours, the 13-inch MacBook might include less battery life than last year's generation, but it does come in above the Touch Bar MacBook Pro model, which clocks in at 49.2 watt hours. In a recent performance comparison provided by Geekbench, the new 13-inch MacBook Pro sans Touch Bar's 15-watt chip was proven to be more energy efficient than the 28-watt chip in last year's entry-level model.

A new spring mechanism is discovered housed next to the MacBook Pro's hinge protector, which "rolls a flat cable up when the display is closed, and unravels when the display opens." This not only seems to make it easier to close the lid of the MacBook, but suggests the overall lighter body of the MacBook Pro needed extra help and couldn't "rely on gravity to close nicely as much as previous models have."

One of the last points iFixit focuses on is the updated Butterfly 2.0 keys on the MacBook Pro's keyboard. Comparing it with the 2015 MacBook, iFixit describes the new MacBook Pro's keys as "a little taller at the edges," so it's slightly easier to find each key with your fingers without looking directly at the board. The dome switches hiding under each key also appear to have more heft than the 2015 MacBook's, further supporting the overall better feel and increased travel on the MacBook Pro.

iFixit also looked at the MacBook's removable SSD, powered by SanDisk 64GB NAND flash memory and Apple's custom SSD controller. Then, the site dove into the logic board to hunt for the "advanced thermal architecture" described in the MacBook's press release. The board appeared mostly the same as previous MacBooks, with Apple's new architecture apparently describing the "relocation of the heat sink screws to the backside of the logic board."

Other interesting tidbits from the teardown include the MacBook Pro's fans, and the single modular unit taped to the bottom of the notebook's fan, which houses the 3.5mm headphone port. Its location, and Apple's removal of the same port on the iPhone 7, means it "could easily be dropped in favor of a Lightning or USB-C connector" in future MacBook Pro generations. Ultimately, iFixit gave the 13-inch MacBook Pro without a Touch Bar a repairability score of 2, with a 10 being the easiest to repair.

Check out the full teardown on iFixit's website.

Apple is looking to use OLED displays rather than current LCD technology for its future MacBook series, according to Korean website ETNews.

The report, citing unnamed sources, said Apple is currently looking into ways of using OLED displays for MacBooks and testing their performance. It does not provide a timeline as to when Apple might release its first OLED-based MacBook.

The switch to OLED technology could have several benefits for future MacBooks, including lower power consumption for longer battery life. OLED panels are often thinner, too, which could allow for a slimmer and lighter MacBook design.

Other potential advantages of OLEDs include increased brightness, sharper colors, and faster response times compared to LCDs.

The report said Apple is actively expanding uses of OLED displays for its major products, one of which is widely rumored to be the iPhone starting next year.

Apple already has experience using OLED displays in limited applications, including the Apple Watch and the new MacBook Pro's Touch Bar, but adapting the technology to larger screens can pose manufacturing challenges.

Today's report pegged Samsung as Apple's supplier of Touch Bar panels, and that partnership could extend to MacBook displays in the future.

KGI Securities analyst Ming-Chi Kuo yesterday said Apple will release new MacBooks in the second half of 2017. New and existing notebooks are said to receive price cuts, while adoption of Intel's Cannonlake processors if readied could allow for up to 32GB of RAM versus the max 16GB of RAM in current models.

KGI Securities analyst Ming-Chi Kuo has released a new research report outlining why he's upbeat about MacBook growth in 2017. Kuo expects price cuts for both new and existing MacBooks in 2017 coupled with a refresh that adds support for 32GB RAM and more, bolstering his belief in the MacBook line next year.

Kuo cites Apple's tendency to price "major-upgraded models," like the original MacBook Air and MacBook Pro, higher near the initial launch "before undergoing in price cuts in the following year" as precedent for price cuts in the second half of 2017. He also believes that the ecosystem for USB-C devices and software that takes advantage of the Touch Bar will become more mature, making it more enticing for users.

Finally, Kuo expects refreshed MacBooks Pros to be launched in the second half of 2017 with support for 32GB of RAM. However, Kuo says this is dependent on whether Intel launches Cannonlake processors on time.

(3) the new MacBook to be launched in 2H17 may support 32GB DRAM, eventually attracting more core users; this depends on whether or not Intel ships Cannonlake CPU on time in 2017, which features 15-25% less power consumption of LPDDR 4, versus the existing LPDDR 3. If Cannonlake doesn’t enter mass production as expected, the new models launched in 2H17 will adopt Coffee Lake, which continues to adopt LPDDR 3, and maximum DRAM support will also remain unchanged at 16GB.

Many customers have been upset that the new MacBooks, which run more energy efficient Skylake processors, continue to max out at 16GB of RAM and cost more than previous-generation models. For instance, the entry-level 13-inch MacBook Pro with a Touch Bar starts at $1,799, $500 more than previous-generation models.

Apple marketing chief Phil Schiller, in an email to MacRumors reader David, explained that for Apple to make a notebook with support for more than 16GB of RAM, it would have to use a memory system that consumes too much power. Regarding price, Schiller said in an interview that affordability is "absolutely something we care about" but that the company designs for experience rather than price.

While Kuo expects price cuts for new and existing MacBooks, like both the 12-inch MacBook and the new MacBook Pros, it's unclear whether he expects Apple to offer support for up to 32GB of RAM for the 12-inch MacBook in addition to the MacBook Pros.

Update: As pointed out by Ars Technica's Andrew Cunningham and others, Kuo's outline of chip possibilities does not match up with what is known from leaked Intel roadmaps. Intel is not planning MacBook Pro-class chips in the Cannonlake family at all, and Coffee Lake chips aren't arriving until 2018.

Apple is seriously considering a price drop for Apple Music, according to two sources that spoke to Digital Music News. The sources are not within Apple, but have worked close with the service since it launched. The price drop would see Apple Music go from $9.99 to $7.99, while family plans would drop from $14.99 to $12.99.

The new prices would begin rolling out by Christmas, and Digital Music News claims the rollout could start with a "holiday promotional discount." While regular and family plans would see a price drop, student rates, which are $4.99 a month, would remain the same price.

The new prices would help Apple Music match Amazon's new Music Unlimited service, which is $7.99 per month for Prime subscribers. However, Amazon's streaming service also offers a $3.99 per month plan for customers that own an Amazon Echo device.

In May, Digital Music News reported that Apple planned on ending iTunes Music downloads within two years, eliciting a specific "not true" response from Apple. A month later, Digital Music News reported that new sources had come forward claiming that Apple would end music downloads in the future, and that the company would debut a new version of iTunes at WWDC that would make it easy for the company to do so.