MacRumors

GT Advanced CEO Thomas Gutierrez sold over 9,000 shares of GT Advanced stock just a day before Apple announced the iPhone 6, reports The Wall Street Journal. The September 8 sale netted him approximately $160,000 at an average price of $17.38, before the company's stock dropped 13 percent to $14.94 on September 9 after it became clear the iPhone 6 and iPhone 6 Plus did not include sapphire screens.

As noted by The Wall Street Journal, though the timing is suspect, the September 8 sale was part of a pre-arranged Rule 10b5-1 Plan enacted in March, according to SEC filings. Along with the $160,000 he earned on September 8, however, Gutierrez sold shares on several other occasions throughout 2014, earning him more than 10 million dollars as GT stock rose on rumors that Apple would use its sapphire for the new iPhones. In comparison, the CEO did not sell any of his shares in 2013.

In a filing, GT said Gutierrez's share sale was part of a pre-arranged plan put in place on March 14, 2014. But there was no obvious pattern to his sales.

In May, June and July, Gutierrez sold shares within the first three days of the month. But then he didn't sell additional shares until Sept. 8, two days after he received 15,902 previously restricted shares. (Gutierrez forfeited the remaining 6,670 shares to cover tax obligations.)

GT Advanced filed for Chapter 11 bankruptcy protection on Monday, promising to continue operations as it goes through a transitional phase to reorganize its business. "Today's filing does not mean we are going out of business," said Gutierrez. "Rather, it provides us with the opportunity to continue to execute our business plan on stronger footing, maintain operations of our diversified business, and improve our balance sheet."

Apple and GT Advanced first partnered in late 2013, with Apple building a 700-employee manufacturing facility in Mesa, Arizona that's run by GT Advanced. The deal also saw Apple funding GT's purchase of furnaces and other sapphire-making equipment through a $578 million loan, doled out over several months and subjected to certain capacity requirements.

Under the terms of the agreement between Apple and GT Advanced, GT Advanced is required to pay back the $578 million loan over the course of five years. If the loan is not paid back, Apple is entitled to the equipment that GT Advanced purchased. When a deal was struck between the two companies, GT Advanced noted that sapphire production for Apple would result in substantially lower gross margins, but was confident that a recurring revenue stream would be beneficial for growth in the long run.

Apple was widely expected to include sapphire display covers from GT Advanced on some iPhone 6 models, and it is unclear why sapphire was not used at all. GT filings did, however, suggest that the company saw poor sapphire yield rates, which may have impacted Apple's decision to stick with alternate materials. Apple is not subjected to any type of commitment to purchase sapphire from GT Advanced, and though the Apple Watch does indeed include a sapphire cover, it is unclear whether the sapphire being used is sourced from GT.

GT's stock dropped approximately 90 percent after the company's bankruptcy announcement and has seen little gain since then.

Used as an in-car hands-free system, Siri causes a high level of mental distraction while driving, according to research conducted by the AAA Foundation for Traffic Safety. In a thorough study [PDF] that measured the cognitive workload of 45 drivers completing in-car tasks using various voice-based technologies, Siri's high complexity and low intuitiveness resulted in some of the highest levels of mental distraction.

Using a five-category rating system, researchers measured Siri-based interactions like sending and receiving text messages and emails, updating Facebook or Twitter, and modifying calendar appointments. Various measurements to record distraction were taken during three separate experiments, in-car on residential streets, without driving, and in a driving simulator.

Researchers tested Siri on an iPhone 5 with iOS 7, using a microphone and voice commands to make the setup both hands-free and eyes-free, with drivers unable to look at or make contact with the phone.

Siri was found to produce the highest mental workload on the researchers' scale, and use of Siri in a car even resulted in two crashes during the simulator study. It was also given the lowest rating of intuitiveness along with the highest rating of complexity, due to its lack of consistency and its inflexibility when it came to voice commands.

Common issues involved inconsistencies in which Siri would produce different responses to seemingly identical commands. In other circumstances, Siri required exact phrases to accomplish specific tasks, and subtle deviations from that phrasing would result in a failure.

When there was a failure to properly dictate a message, it required starting over since there was no way to modify/edit a message or command. Siri also made mistakes such as calling someone other than the desired person from the phone contact list. Some participants also reported frustration with Siri's occasional sarcasm and wit.

According to the researchers, interactions with Siri may improve over time as the voice assistant is able to learn accents and other characteristics of a user's voice, but many commands resulted in overly complex interactions that could be fixed via "improvements to the software design."

Though the AAA study looked at the distraction level when using Siri directly on an iPhone, it did not look at CarPlay, Apple's new in-dash system that the company says is a "smarter, safer way to use your iPhone in the car." Other similar in-dash systems did, however, result in high levels of cognitive workload in a companion study, but cognitive demand varied highly based on the number of comprehension errors and the number of steps required to complete an action.

Early CarPlay reviews have suggested that the system's Siri integration is improved compared to Siri on the iPhone, as it was judged to be easy to use with simple menus and navigation.

The study comes ahead of a set of voluntary guidelines the AAA is planning to create, encouraging users to minimize their cognitive distraction by cutting back on the use of voice-based technologies while driving. According to the AAA, voice-based interactions within a vehicle result in "significant impairments" to driving that may "adversely affect traffic safety."

Apple today released the second beta of iOS 8.1, build 12B407, to registered developers for testing purposes, just over a week after the release of the first iOS 8.1 beta.

Apple has also released Apple TV Software beta 2 and Xcode 6.1 golden master seed 2.

iOS 8.1 includes several bug fixes for issues in iOS 8, including a fix for a Bluetooth connectivity problem, and it also includes support for Apple Pay, Apple's mobile payments service that is launching in October.

Along with iOS 8.1, Apple is also simultaneously working on iOS 8.2 and iOS 8.3, all of which are expected to add new functionality to the operating system.

iOS 8 has had a rough start, with Apple temporarily removing HealthKit ahead of the launch of iOS 8 and then releasing an unstable iOS 8.0.1 update that disabled the cellular and Touch ID service of many users. Apple released iOS 8.0.2 to fix the issue, but several other problems have come to light, including a bug that causes iCloud Drive documents to be deleted.

Samsung's third quarter 2014 earnings are likely to disappoint as the company faces intense competition from both high-end and low-end competitors, even as Apple's newly launched iPhone 6 and 6 Plus are just starting to roll out. According to the Wall Street Journal, Samsung is expected to announce a quarterly operating profit drop of up to 62 percent in what may be its fourth consecutive quarterly decline.

Though it may see a marginal increase in smartphone shipments, Samsung's operating profit decline may be the result of lower handset selling prices and increased marketing costs as smartphone competition escalates.

Samsung’s smartphone business is facing intense competitive pressure at the low-end from Chinese handset makers, and at the high-end from the iPhone. With the iPhone 6, Apple essentially wiped out Samsung’s distinguishing feature: a big screen size. And with the jumbo iPhone 6 Plus, Apple has now entered into the “phablet” segment that Samsung pioneered.

One of Samsung's main component customers is Apple, although the iPhone maker has cut back significantly on its usage of Samsung parts. One major move away from Samsung came with the main A8 chip used in the iPhone 6 and 6 Plus, with Apple turning to TSMC for the first time for chip production. Some industry sources believe Samsung to still be producing a portion of A8 chips, but so far it does not appear any have been seen in teardowns of the new devices.

After almost three weeks of availability, Apple's iOS 8 operating system is now installed on 47 percent of devices, according to new numbers posted on Apple's App Store support page for developers.

That marks a very slight increase in adoption over the past two weeks, as back on September 21, iOS 8 was installed on 46 percent of devices. 47 percent of iOS users continue to stick to iOS 7, possibly due to a number of bugs that have plagued the launch of iOS 8.

Just ahead of the launch of iOS 8, all HealthKit-enabled apps were pulled from the App Store due to a major HealthKit bug. A fix was quickly released, but the update, iOS 8.0.1, disabled the cellular service and Touch ID functionality on iPhone 6 and 6 Plus devices.

iOS 8.0.2 fixed the problems introduced with iOS 8.0.1 and brought several other bug fixes, but the publicity surrounding the iOS 8.0.1 issue may have discouraged some users from updating.

Along with the critical bug introduced with iOS 8.0.1, several other problems have come to light. An iCloud Drive issue with the "Reset All Settings" option causes iCloud Drive documents to be deleted from iCloud, and multiple users have experienced problems with Bluetooth. Furthermore, iOS 8 users have complained of other issues with the operating system, including slow wi-fi speeds and excessive battery drain.

Apple's iOS 8 adoption numbers closely mirror data from Mixpanel, which also puts iOS 8 adoption at 47 percent. iOS 8's adoption rate appears to be slower than iOS 7 adoption as Mixpanel's numbers last year put iOS 7 adoption at 69.7 percent 20 days after launch.

iOS 8.1, seeded to developers last week, fixes at least one major problem, repairing the Bluetooth pairing issue many users have been facing. The update also includes support for Apple Pay, which is expected to debut in October.

According to Apple, both the iPhone 6 and the iPhone 6 Plus have "faster LTE download speeds" than the iPhone 5s, reaching up to 150Mbps thanks to the inclusion of the Qualcomm MDM9625M LTE chip, which supports LTE Advanced.

A demonstration of the speed difference between the iPhone 5s and the iPhone 6 when connected to a high-quality LTE network has been conducted by iClarified, suggesting the iPhone 6 is able to reach much higher speeds than the iPhone 5s.

The test, which was conducted in London, Ontario, Canada on the Fido network, shows the iPhone 6 topping out at download speeds of 101Mbps while the iPhone 5s reaches 35Mbps. Upload speeds are similarly improved, reaching 27Mbps on the iPhone 6.

We were able to consistently reach speeds in the high 90s with the iPhone 6. The absolute highest download speed we were able to obtain was 111 Mbps. I'm confident that if the conditions were optimal we could have obtained even higher speeds.

First introduced in 2013, LTE Advanced takes advantage of carrier aggregation technology, combining separate spectrums into a single faster connection to increase data speeds and network capacity. Several carriers offer the technology, and the iPhone 6 and 6 Plus are Apple's first devices to support it. Because not all carriers support LTE Advanced and due to differences in connection strength, not all users may see increased speeds on Apple's new devices.

Along with LTE Advanced, Apple's iPhone 6 and 6 Plus offer several other connectivity improvements, including support for up to 20 different LTE bands. With additional bands (7 more than the iPhone 5s), iPhone users are able to connect to more LTE networks when traveling abroad and LTE connections are available in more countries. The phones also include support for voice over LTE (VoLTE), improving voice quality and allowing some users to access voice and data simultaneously over LTE for the first time.

More than a decade ago, Walter Isaacson began working on a book to highlight the history of computers and the Internet, but the project was sidelined in early 2009 when he took on the task of writing Steve Jobs' authorized biography. That book, which debuted just weeks after Jobs' death in October 2011, topped best seller charts and revealed a number of interesting details about Jobs and Apple.

Following the publication of Steve Jobs, Isaacson returned to his earlier project of documenting the history of computing, and that work debuts tomorrow as The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution. While Apple and Jobs play relatively minor roles in the book, overall it offers an interesting look at how computers and the Internet developed into what they are today.

Isaacson breaks his book into nearly a dozen different sections, highlighting a number of advancements along the way. It begins with Ada Lovelace and Charles Babbage outlining their thoughts on a mechanical "Analytical Engine" in the 1830s and 1840s before jumping ahead nearly 100 years to Vannevar Bush and Alan Turing and their visions for the earliest computers that would follow soon after. Further sections address advances in programming, transistors, microchips, video games, and the early Internet before broaching the topics of the modern personal computer and the World Wide Web.

Throughout the book, Isaacson focuses on the importance of teamwork rather than individual genius in the development of computers, frequently involving contrasting but complementary personalities of visionaries, technical experts, and managers. Popular examples include Steve Jobs and Steve Wozniak at Apple, or Bob Noyce, Gordon Moore, and Andy Grove at Intel, but the observation extends further as time and time again teams have been responsible for many of the biggest innovations.

Innovation comes from teams more often than from the lightbulb moments of lone geniuses. This was true of every era of creative ferment. [...] But to an even greater extent, this has been true of the digital age. As brilliant as the many inventors of the Internet and computer were, they achieved most of their advances through teamwork.

Isaacson also emphasizes the importance of building on previous discoveries, including collaboration both within and between generations of scientists. A number of characters in the book appear at multiple stages, often first as innovators themselves and later helping to foster discoveries by the next generation.

Other observations include the various roles of government, academia, and business in the development of computing and how they frequently came together, particularly in the early days, to lead advancements. Isaacson also uses several cases to argue that innovation works best when different business models compete against each other, particularly in software development as with Apple's integrated systems vying with Microsoft's unbundled model while the free and open-source approach maintained its position in the market.

Each model had its advantages, each had its incentives for creativity, and each had its prophets and disciples. But the approach that worked best was having all three models coexisting, along with various combinations of open and closed, bundled and unbundled, proprietary and free. Windows and Mac, UNIX and Linux, iOS and Android: a variety of approaches competed over the decades, spurring each other on -- and providing a check against any one model becoming so dominant that it stifled innovation.

Packing the entire history of computing into 500 pages leaves some topics feeling brief or left out altogether, but Isaacson's book gives an interesting overview for those who may not be familiar with the technical advances stretching back decades that have given rise to the current state of the art. Focusing more on the people and relationships than the technical details, it offers some insight into how breakthroughs have been made and how some innovators have gained fame and fortune while others slipped into near obscurity.

Apple is expected to hold an event on Thursday, October 16, where it will unveil the second-generation iPad Air, Retina iMacs, and OS X Yosemite. Ahead of that event, The Michael Report claims to have acquired "pictures and illustrations" of the iPad Air 2 from "sources within Apple," although it has opted not to share such evidence publicly.

While the site goes into significant detail about the iPad Air 2, it appears to be largely aggregating existing rumors about the device, adding little new information. Overall, the site claims the iPad Air 2 will have a slightly thinner body, something that has been claimed in previous reports and perhaps enabled by a new integrated display, as shown in early part leaks from April.

Along with its display prediction, The Michael Report details several minor design changes that have previously been seen in an iPad Air 2 dummy unit, which MacRumors also has had on hand for several months, suggesting the site may be basing much of its information off of a replica device rather than actual information.

For example, the site suggests that the second-generation iPad Air 2 will do away with the mute switch to "achieve [a] thinner profile," but that is likely an erroneous conclusion based on the unfinished design of the circulating dummy units rather than a legitimate leak as claimed by the site. On the iPad Air 2 dummy units, there is indeed a hole where the mute switch would normally be located. The Michael Report suggests this may be a microphone, but more likely, it is a pilot hole marking the location for the mute switch. Similar pilot holes have been seen for larger physical features such as SIM card trays in other dummy units and unfinished prototypes.

The mute/vibration switch is completely gone in the new redesign, with sources from within Apple telling us that it was a necessary move to achieve the thinner profile of the new tablets. [...]

The microphones on the iPad Air 2 have been relocated from the top of the iPad Air (where it currently is; within the antenna band) to next to the back camera modules. One of them is to the right of the camera module, the other is to the left -- on the sides of the iPad Air.

Other predictions from The Michael Report include recessed volume buttons, a redesigned speaker grille, and a microphone hole relocated near the rear camera, all design elements that have been previously seen in the iPad Air 2 mockups. When examining the dummy device, MacRumors did notice that the recessed volume buttons and hole for the mute switch had been moved higher on the device than on the original iPad Air, nearly in line with the rear camera. The reason for this design change is unclear.

Echoing other previous rumors, the site's predictions include an upgraded A8 processor, an 8-megapixel camera, support for Touch ID and Apple Pay, and 2 GB of RAM, which has not been confirmed but is a rumored upgrade to support split-screen multitasking.

Many of The Michael Report's predictions are based on previous rumors and are likely to be accurate, but some of the more unsubstantiated claims, like 2 GB of RAM and the lack of a mute switch are somewhat more nebulous.

Apple is expected to unveil its second-generation iPad Air on October 16, and it is possible the second-generation Retina iPad mini with support for Touch ID will also debut at that event. Apple is also expected to unveil Retina iMacs and provide a final look at OS X Yosemite before its public launch.

The City of Cupertino, where Apple is building its spaceship-shaped second campus, has today shared an update on the progress of the campus along with a new aerial photo.

Construction continues at a rapid pace, with workers on site throughout the weekday and weekend. Apple appears to have completed much of the foundation of the main circular building and concrete mixers have been on site for the last several weeks. Much of the construction continues to be hidden from view at street level, but heavy construction equipment is visible.

Traffic around the area of the campus remains congested, as several roads continue to be shut down. Pruneridge Avenue is permanently closed, and there have been several lane reductions on Wolfe Road and Homestead Road, which surround the campus.

Along with a new aerial photo shared by the city, a drone captured new footage of the building site over the weekend, giving a clearer picture of the ongoing construction. As seen in the video, several sections of the circular foundation are covered with concrete.

Apple's completed campus, located in close proximity to the company's existing Infinite Loop campus, will feature the iconic 2.8 million square foot ring-shaped main building, an underground parking facility capable of accommodating 2,400 cars, a 100,000 square foot fitness center, and a 120,000 square foot auditorium.

eBay seller kimberlyk1018 claims to have received a prototype iPhone 6 by accident and is auctioning the device with bids reaching over $89,000 since the auction's posting late last week. While the high bids are undoubdtedly not genuine, the auction is obviously attracting a significant amount of attention.

According to a rather suspect story from the auction description, the device supposedly is a prototype 64 GB iPhone 6 that was shipped to the seller from Verizon Wireless.

Apple does NOT let these phones out of their possession yet I was accidentally sent one upon renewing my contract. As you can see from the photos, iOS8 has not been placed on this device, rather it is in the true developer mode. There are no FCC markings on the rear of the device or a model number. This is the real deal!!! The lightening port is red which is a sure sign of a prototype.

The authenticity of the device and the story behind it cannot be verified, but several photos that accompany the listing suggest it is not a consumer device.

The device apparently does not include iOS 8, instead shipping with several development and testing apps that are similar to those seen on previously leaked prototypes. It also ships with a red-bordered Lightning port and lacks the FCC regulatory information that appears on all consumer iPhone models.

If authentic, this unit joins several previous prototypes that have made their way from Apple to eBay's auction listings. Most of these earlier prototypes were quickly removed from the auction website, likely at Apple's request.

GT Advanced Technolgies, Apple's partner in a sapphire production facility in Arizona, today announced that it is filing for Chapter 11 bankruptcy protection as it seeks to reorganize its businesses. The company remains positive that it will continue to be able to meet its obligations during this time of transition.

GT indicated that as of September 29, 2014 it had approximately $85 million of cash. In addition, it is now seeking debtor-in-possession financing, which, once obtained, would provide the company with an immediate source of additional funds. These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations. [...]

"GT has a strong and fundamentally sound underlying business," said Tom Gutierrez, president and chief executive officer of GT. "Today's filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.

"We are convinced that the rehabilitative process of chapter 11 is the best way to reorganize, protect our company and provide a path to our future success. We remain committed to our roots in innovation and our diversification strategy. We plan to continue to operate as a technology leader across our core set of businesses."

GT's finances have taken a significant hit as it has retooled to support its partnership with Apple, turning its focus to ramping up sapphire production for Apple rather than selling furnaces to other companies. Still, with Apple making a series of pre-payments to GT to help fund the new initiative, the circumstances surrounding the bankruptcy filing are not yet clear.

Apple had been widely expected to include sapphire display covers on at least some iPhone 6 models, but the development did not come to pass. With Apple having no commitment to purchase sapphire from GT, it is possible that an unexpected decision by Apple to omit sapphire from the device put GT into a precarious financial position. Apple is planning to use sapphire on some versions of its upcoming Apple Watch, but it is unclear whether it is indeed sourcing sapphire from GT for the product, and if so, whether the quantities involved would be enough to support GT's investments thus far in the area.

Update 7:47 AM: GT's stock, which was halted prior to the announcement, has resumed trading and is currently down 90 percent.