MacRumors

Apple's new Apple SIM card in the iPad Air 2 and the Retina iPad mini 3 is designed to be universal, usable across a variety of wireless carriers in the US and UK, including AT&T, Sprint, T-Mobile, and UK's EE.

According to user reports in the MacRumors forums and on Twitter, however, AT&T is not supporting this interchangeability and is locking the SIM included with cellular models of the iPad Air 2 and Retina iPad mini 3 after it is used with an AT&T plan.

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Image via John Legere

A newly posted Apple support document details what happens to the SIM when it is activated on US carriers.

Using Apple SIM, you can choose from different cellular carriers and their various programs. The data plans vary by carrier. For instance, in the United States, you can choose a domestic plan from either Sprint or T-Mobile and also pick an alternate plan from the other carrier as needed. When you choose AT&T on iPad Air 2 and iPad mini 3, AT&T dedicates Apple SIM to their network only.

AT&T appears to be the only participating carrier that is locking the Apple SIM to its network. T-Mobile's John Legere has indicated that T-Mobile's process does not lock a customer in to T-Mobile, which appears to be confirmed by Apple's support document, and Sprint's process also seems to leave the Apple SIM unlocked and able to be used with other carrier plans. Verizon, the fourth major carrier in the United States, did not opt to allow the Apple SIM to work with its network.

According to the Apple support document, when an Apple SIM becomes locked to a specific network like AT&T, purchasing a new Apple SIM from an Apple Retail store will allow an iPad to be usable with other carrier programs.

Apple introduced its universal SIM alongside the iPad Air 2 and Retina iPad mini 3 on October 16. It is the first SIM provided by Apple that is designed to work across multiple carriers.

Update 12:10 PM PT: An AT&T spokesperson confirmed to Re/code that AT&T customers who use the Apple SIM with AT&T will need a different SIM card to switch carriers.

"With us you can change carriers with this iPad any time you want," he said. "It is an unlocked device. ... All [you] have to do is switch out the SIM in the device so it works on another carrier."

AT&T did not explain why it opted to lock the SIM card to its network, however, with the spokesperson saying "it's just simply the way we've chosen to do it."

After tearing down the iPad Air 2 earlier this week, iFixit has now moved on to the iPad mini 3, which also received a minor update during Apple's October 16 iPad event. Unlike the iPad Air 2, the iPad mini 3 saw few internal improvements, gaining a new gold color option and a Touch ID fingerprint sensor.

As expected, iFixit's teardown reveals many of the same parts that were used in first Retina iPad mini, now called the iPad mini 2. It continues to use the same 7.9-inch display, A7 processor with M7 coprocessor, 5-megapixel camera, and 802.11n Wi-Fi.

There is one new addition, which is directly related to Touch ID and the iPad mini 3's ability to support in-app Apple Pay payments. Like the iPad Air 2, the iPad mini 3 includes a 65V10 NFC controller manufactured by NXP.

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NFC Controller in blue

There is no accompanying NFC antenna to allow the tablet to make NFC-based payments within stores, but there has been strong speculation suggesting the NFC chip is where Apple Pay's "Secure Element" is located. According to Apple, the Secure Element is a dedicated chip that stores encrypted Device Account Numbers, which replace credit card numbers for security reasons.

Though the iPad mini 3 and the iPad Air 2 are not able to make payments within stores, they can make Apple Pay payments within participating apps and thus utilize both the Secure Element and Device Account Numbers.

NXP's own site details the use of a specific integrated circuit designed for handling and storing secure data on its website, stating the technology has been integrated into its NFC controller chips. While the 65V10 is not mentioned by name, its appearance in both the iPad Air 2 and the iPad mini 3 suggests that it is indeed being used for its security function rather than its NFC function.

Aside from the inclusion of the 65V10 NFC chip, which is located in a spot on the logic board that was previously left blank, there are few other notable features about the iPad mini 3. iFixit did find that the tablet has new home button cabling to support Touch ID and home button brackets that are securely affixed by hot glue, which makes removing the home button a much more difficult task.

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Like the Touch ID cable in the iPhone 5s, the location of the Touch ID cable in the iPad mini 3 makes screen repairs very difficult, as the cable is easy to sever when opening up the display. Due to the glue and the precarious position of the Touch ID cable, the iPad mini 3 earned a repairability score of 2 out of 10 from iFixit.

Apple's iPad mini 3 is currently available in both retail stores and from Apple's online store, with prices that start at $399.

Related Roundup: iPad mini
Buyer's Guide: iPad Mini (Neutral)
Related Forum: iPad

Apple's digital music sales continue to spiral downward, falling more than 13 percent worldwide thus far in 2014, reports The Wall Street Journal. Last year, digital music sales dropped for the first time since iTunes opened in 2003, falling 5.7 percent year-over-year.

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This continued decline is likely one of the reasons behind Apple's $3 billion acquisition of Beats Electronics and Beats Music earlier this year. Apple may be hoping to offset this drop in digital music revenue with increased subscription revenue from Beats Music.

The plummeting download numbers help illustrate why Apple bought the $10-a-month subscription streaming service Beats Music earlier this year, as part of its $3 billion acquisition that included headphone maker Beats Electronics. Apple is rebuilding Beats Music and plans to relaunch it next year as part of iTunes, according to a person familiar with the matter.

To attract a broader customer base, Apple is rumored to be revamping Beats Music with an expected relaunch of the service slated for next year. The Cupertino company also is pushing for an industry-leading $5 monthly subscription cost that may increase the number of subscribers willing to pay for a premium service.

Apple is not new to the streaming music business, having launched iTunes Radio last year alongside iOS 7. The Pandora-like service has reportedly failed to achieve its goals of spurring listeners to purchase tracks from the iTunes Store despite being bundled on millions of phones in its available regions, and has yet to expand beyond the United States and Australia.

Earlier this week, a teardown analysis of the iPad Air 2 by iFixit surprisingly revealed the presence of a near field communications (NFC) controller chip that is identical to the one inside the iPhone 6 and 6 Plus. Apple never advertised the Air 2 as having NFC, and the tablet doesn't support contactless Apple Pay payments, so the inclusion of this chip is somewhat puzzling.

In a new article, Gigaom examines the reasons why Apple might include but not activate this hardware in its tablet device, speculating that the chip may eventually serve to help small businesses process payments.

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Portion of iPad Air 2 logic board showing NFC chip boxed in red (Source: iFixit)

In this scenario, the iPad Air 2 would serve as a cash register, potentially using the onboard NFC chip to process wireless Apple Pay payments without any additional hardware. The iPad already is gaining traction with small retailers for use as a mobile register, often in conjunction with a credit card reader and processing service such as Square. But with Apple Pay rolling out as an NFC system for payments, Apple could be eventually be looking to help retailers accept such payments with its hardware.

The key to NFC in the iPad Air 2 is that it affords the possibility of becoming an Apple Pay cash register with no dongle needed. Conceivably, it could expand the number of outlets that take Apple Pay from around 40 to anyone selling stuff who owns the latest iPad. It brings Apple Pay out from the big box store and into farmers’ markets and boutiques.

Such a system would appear to complement rather than replace existing credit card implementations used by small businesses, as Apple Pay currently has only limited distribution through the iPhone 6 and 6 Plus and retailers would still need to accept traditional credit and debit cards. Businesses also still require credit card processing arrangements through either a bank or a separate payment service such as Square.

Apple Pay launched earlier this week with only a few hiccups in an otherwise smooth release. Early reports were favorable with most users noting that transactions were processed quickly and easily. Its biggest limitation is distribution, with only large chain launch partners officially accepting the payment service. But as Apple Pay evolves, it will be interesting to see whether the NFC-equipped iPad Air 2 and small businesses will play a bigger role in Apple's mobile payment plans.

Update: As pointed out by a number of readers, the lack of NFC antennas in the iPad Air 2 leaves it unclear how the iPad Air 2 could be used as payment receiver. Forum member GekkePrutser notes that the chip is likely included in the iPad because it houses the secure element where Apple Pay data is stored for the in-app payment feature that is supported on the new iPads.

Related Roundups: Apple Pay, iPad
Buyer's Guide: iPad (Buy Now)

According to reports on Twitter, Reddit and MacRumors forums, Amazon's Visa Rewards card is now compatible with Apple Pay. Amazon reportedly enabled the feature today, moving quickly to bring the mobile payments service to consumers who were disappointed in Amazon for not supporting Apple Pay at launch.

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Apple Pay launched on Monday with support from a large number of credit card companies and banks. Among the launch partners were Chase, which is the issuing bank for the Amazon Visa Rewards card. Amazon reportedly was the only Chase consumer card not supporting Apple Pay, sparking rumors that the retailer was deliberately rebuffing Apple's mobile payment efforts for competitive reasons.


Amazon dispelled these rumors by confirming it would enable Apple Pay soon, but few expected the rollout to happen so quickly. Customers with an Amazon Visa Rewards card should be able to add the credit card to Apple Pay with full support for mobile payments.

Related Roundup: Apple Pay

china-flagTim Cook was optimistic about Apple's relationship with China following a meeting with top Chinese government officials in Beijing on Wednesday to discuss data privacy and security. Cook told China's Xinhua news agency (Via Reuters) that he had "very open" talks with a senior official.

Chinese vice premier Ma Kai, a member of the CPC Central Committee Political Bureau, met with the CEO of the world's most valuable company on Wednesday morning. They had discussed a series of topics including privacy and security. Cook described it as "very open", "fascinating" and "impressive", but he declined specifics.

As part of the interview, Cook also confirmed Apple's plan to launch Apple Pay and other technologies in China saying, "China is a really key market for us. Everything we do, we are going to work it here. Apple Pay is on the top of the list." Cook spoke to Xinhua News during his 4-day-long trip to China, which saw the CEO also visit a Foxconn factory in Zhengzhou City.

China is an increasingly important market for the Cupertino company, which now has 16 percent of the smartphone market share behind Samsung (23 percent) and Xiaomi (21 percent). Apple plans to expand its presence even further in the country by opening 25 new stores in the next two years.

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.

Radio streaming service iHeartRadio has updated its official iOS app to include support for Apple's CarPlay iOS vehicle integration feature. Users can now search and play any live or favorited radio station through their CarPlay-compatible in-dash car system, and can also listen to archived on-demand episodes from multiple categories like News, Sports, and Comedy.

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This newest update also brings a new Today Widget for the Notification Center which allows users to access recently played stations quickly. Apple announced in June that iHeartRadio would be getting CarPlay support along with other popular apps like Beats Music, MLB At Bat, and Spotify, which received its CarPlay update earlier this month.

iHeartRadio is a free app for iOS devices and can be downloaded through the App Store. [Direct Link]

Related Roundup: CarPlay

Pixelmator, a popular Photoshop replacement on the Mac, was released for the iPad today. The image editing iOS app is similar to the Mac app, incorporating many of the same tools to allow users to retouch and enhance photos and images.

The app includes a complete set of painting tools and a painting engine that can take advantage of a range of brushes from crayon and marker to pencil and paintbrush to create works of art from scratch or improve photos.

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It offers several photo editing tools, including advanced retouching tools that let users remove unwanted objects from images in just a few minutes. There are color adjustment tools (including levels, brightness/contrast, curves, white balance, and more) to improve the look of photos, and a selection of more than 14 pre-created effects can be applied to images.


Pixelmator for iOS supports non-destructive layer styles and it includes powerful selection tools along with image straightening and cropping tools. There are also built-in shape and text tools.

Pixelmator comes with a set of top-quality retouching tools so you can easily make every picture absolutely stunning. With the innovative repair tool, quickly and easily get rid of unwanted image elements simply by painting on them or, with just a simple tap fix red eyes, brush away blemishes, smudge to smooth out hard lines, paint to boost the colors, bring in some light and so much more. Advanced technologies used in retouching tools make them incredibly fast and accurate, so that you can seamlessly bring an image to perfection.

Loaded with dozens of breathtaking effects, Pixelmator for iPad gives even more ways to enhance pictures. Add gorgeous effects like blur, vignette, vintage, black & white, light leak, bokeh, miniaturize and many more -- in an instant. You can even combine different effects for unique, near-effortless artistic creations and see the stunning results in real time.

The app has been designed from the ground up for iOS 8 and it fully supports several different iOS 8 features. It uses iCloud Drive to store images, for example, and with Handoff, it's possible to start editing an image on the iPad and pick it up on the Mac.

There's Document Picker support to allow users to edit images in other apps, and there's a Pixelmator Photo Editing extension designed for the Photos app. It's also possible to share images with other apps with Share extensions.

When Apple unveiled the new iPad Air 2 on October 16, it invited the Pixelmator team to take the stage to demo the Pixelmator app for the iPad Air 2, as it is designed to take advantage of the tablet's powerful 64-bit processor. Though created to utilize a 64-bit processor, Pixelmator for iPad is compatible with iPad 2, iPad 3, iPad 4, iPad Air, iPad Air 2, iPad mini, iPad mini 2, and iPad mini 3. iPad 4 or later is recommended for the best performance, however.

Pixelmator can be downloaded from the App Store for $4.99. [Direct Link]

Facebook today announced the release of a new anonymous sharing app called Rooms, which will allow users to create an anonymous invite-only chat room based around any theme.

Rooms is a standalone app that is not integrated with Facebook and does not require a Facebook login. No personally identifiable information is required within chat rooms and users are identified by nicknames. A user can join a chat room via a QR code that can be shared online, offline, privately, or publicly. While Rooms does not monitor user location, it does store messages on Facebook's servers.

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Rooms will be using the same community standards used by Facebook, so content flagged for bullying, threats, spam, and more can be deleted by Facebook. The site can also ban members or disable entire chat rooms, and each Room moderator has the power to ban users who join.

Chat rooms, which can be created on any topic, are also customizable with different colors, emojis, and more. According to Facebook Product Manager Josh Miller, who spoke to Re/code, Rooms is not designed to emulate anonymous sharing apps like Secret or Whisper, instead aiming to provide people with a place to chat with others who "care about the same stuff you do."

Rooms lets you create places for the things you're passionate about. Pick a topic, customize the look and feel, be whoever you want to be and share with others. It's perfect for the things you love and interests that make you unique.

- Pick a topic: Create a home for people who are as into the topic as you are.
- Customize the look and feel: Pick a color, choose an emoji for your like button, and more!
- Be whoever you want to be: Choose nicknames for yourself, real or made up.
- Share with others: Invite other people so you can share photos, videos, and notes with them.

Rooms was created by Facebook's Creative Labs branch, which has also created Paper and Slingshot. While news reader Paper has enjoyed success in the App Store, video and photo messaging app Slingshot has not been as popular.

Rooms is an iPhone-only app that can be downloaded from the App Store for free. [Direct Link]

testflightApple today began notifying developers that its TestFlight Beta Testing platform is now live and available for immediate use. TestFlight Beta Testing is designed to make it easier for developers to invite users to test pre-release versions of apps.

You can now invite up to 1,000 testers to beta test your iOS apps by simply sending them an email invitation through iTunes Connect. Once they accept your invitation, testers can install your beta app on their iOS devices, get updated builds, and provide feedback, all within the TestFlight app.

TestFlight has long been used as an app beta testing platform by developers, but Apple acquired the service earlier this year with its purchase of Burstly, the company that initially developed the testing platform. After the acquisition, Apple redesigned TestFlight and relaunched it as an integrated iOS 8 service for both developers and testers.

While there are several beta testing services including HockeyApp, TestFlight aims to make the beta testing process simpler by removing the need for UDIDs and provisioning profiles. Developers can invite users to test an app with just an email address, and there are built-in tools for both internal and external testing.

End users who are invited to beta test an app will be instructed to download the TestFlight app for iOS, which became available in the App Store last month. The app is designed to deliver apps for testing, notify testers each time a new build is available, and provide tools for feedback.

With iOS 8 and OS X Yosemite, Apple introduced "Continuity," a set of features designed to allow for deeper integration between Macs and iOS devices. Unfortunately, some Continuity features are limited to Macs with Bluetooth 4.0, which leaves many older Macs unable to access the new features.

Additionally, even though the 2011 MacBook Air and 2011 Mac mini include Bluetooth 4.0, Apple has opted not to allow them to access Continuity features. Luckily, many resourceful members of the MacRumors forums have come up with solutions to allow them to enable Continuity on their older Macs, and discussion on our forums has led to the creation of a set of instructions and a Continuity Activation Tool that should get Continuity working on Macs unable to explicitly support the feature.

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Created by Dokterdok (based on instructions compiled by UncleSchnitty) and available on Github, the Continuity Activation Tool is designed to activate Continuity by doing a compatibility check, creating backups of original System drivers, and disabling a Mac-model blacklist in the Bluetooth code that prevents Continuity from working on ineligible Macs. From there, it also whitelists Mac board-ids within the Wi-Fi code to get the feature working.

The tool can be downloaded as a zip file from Github and is installed by double clicking the app and following the instructions provided on the screen.

The Continuity Activation Tool will enable Continuity on the mid-2011 MacBook Air and the mid-2011 Mac mini with no additional hardware required, as both of those devices include Bluetooth 4.0. That means installing the tool should get Continuity up and running on those machines in just a few minutes.

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On older Macs that do not come equipped with Bluetooth 4.0, new wireless cards will need to be installed, which makes it more difficult for casual users to get access to Continuity. USB dongles that provide Bluetooth 4.0 will not work with the Continuity Activation Tool, and a list of wireless cards that will provide Bluetooth 4.0 for each older Mac can be found on the MacRumors forums.

Both MacRumors forum members and Redditors have confirmed that this method is able to successfully enable Continuity on a variety of Macs, including the mid-2011 MacBook Air, the early 2011 MacBook Pro, and the mid-2011 Mac mini.

The Continuity Activation Tool appears to enable all Continuity features when used successfully, allowing older Macs to access Handoff, Instant Hotspot, SMS forwarding, and Mac phone calls without an issue. Some of these Continuity features may work already on older Macs as they use a variety of different connection methods ranging from Bluetooth to Wi-Fi, but the tool is confirmed to get Handoff and AirDrop, both of which require Bluetooth, to work.

Users should exercise caution when using the Continuity Activation Tool, as it moves around low level files and there's a possibility it could cause problems. A backup is recommended before attempting to install the tool.

sapphire.pngEarlier today, GT Advanced Technologies officially announced its settlement with Apple, which will see the two companies dissolving their partnership, ending their production agreement, and eliminating contractual ties that kept GT from selling its sapphire to other parties.

Under the agreement, GT Advanced will be selling off its remaining sapphire, along with 2,000 sapphire furnaces, with much of the proceeds going to Apple to repay the $439 million loan it provided to get the operation underway.

Apple has now commented on the settlement with GT Advanced, telling Re/code that GT's sapphire manufacturing process simply wasn't ready for production, and that a relationship in the future remains a possibility as the company's sapphire production techniques improve. GT will continue research work focused on creating sapphire boules over 165 kilograms.

Apple also says that it is going to look for other ways to use the Mesa, Arizona facility that it purchased for GT Advanced, which will be unused after GT fully shuts down operations at the end of December

"Apple put a lot of effort into an ambitious new sapphire manufacturing process with GTAT which is not ready for production. We're going to continue evaluating GTAT's progress on larger sapphire boule development, as well as consider other options for the facility. We remain committed to the city and we're going to work with Mesa and Maricopa County to help the GT Advanced employees who will be impacted by this find new jobs."

GT Advanced first filed for bankruptcy at the beginning of October, but the company was reportedly missing technical milestones as early as February, hinting at the trouble to come. While Apple was widely expected to use sapphire from GT Advanced for the iPhone 6 and 6 Plus displays, the company opted to stick with Corning's Gorilla Glass after it became apparent GT would not be able to produce sapphire of the quality that Apple required.

Approximately 650 employees at the Mesa, Arizona sapphire plant have already been laid off, and a limited number of employees will remain employed until the end of the year in order to help GT Advanced wind down production at the factory, finishing the sapphire boules that are currently growing and shutting down and cleaning furnaces for storage and sale.

A growing number of Apple Pay users are angry with retailer Rite Aid following the reported disabling of the mobile payment service within the past 24 hours. Apple Pay should technically be compatible with any point-of-sale systems supporting NFC technology, but customers who made successful Apple Pay payments earlier this week have found their payments were being denied yesterday and today.

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Among the disgruntled users was Josh Hudnall, who shared his experiences and his conclusions that Rite Aid is deliberately crippling its payment systems to prevent Apple Pay transactions.

Today, Allison asked me to pick up a few things on my way home from the office, and I’m a major nerd, so naturally I was all too happy to oblige. I was equally disappointed, then, when my transaction was declined with a message on the terminal informing me that Apple Pay was not supported. The terminal mentioned Apple Pay by name. So the system is smart enough to know about Apple Pay and to decide not to take it.

Hudnall spoke to an associate who claims Rite Aid recently sent an email informing stores that the retailer is not accepting Apple Pay payments, and Hudnall speculates it is because Rite Aid is a supporter of the upcoming CurrentC payments system from Merchant Customer Exchange. Competitor Walgreens is also one of Apple's biggest launch partners for Apple Pay.

According to Twitter reports, the retailer also unexpectedly turned off support for Google Wallet at the same time. Rite Aid has not confirmed the shut down of these services, nor commented publicly on these reports.



Apple Pay launched earlier this week in a debut that was relatively smooth for most customers. As demoed in a McDonald's transaction, payments are processed almost instantly at supported terminals with the press of the Touch ID sensor on the phone.

The most publicized hiccup occurred with Bank of America customers, who were accidentally charged twice for their purchases. Bank of America confirmed that the issue only affected a small number of users who will receive refunds.

Related Roundup: Apple Pay

Apple's Power Mac G5 has a distinctive aluminum design that was disruptive when it launched in 2003. Inspired by this milestone in design, designer Klaus Geiger has "upcycled" this aging Apple hardware into furniture because the machines are "simply too good to be disposed of." (via DesignBoom)

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As part of a project aptly titled "Benchmarc", Geiger has carefully created a sitting bench using a carved wooden plank that forms a bridge between two Power Mac G5 units. The machining on the wood is aligns the curve perfectly with the shape of the Power Mac chassis.

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Beyond benches, Geiger also has crafted a movable conference table, file cabinets and more using discarded Power Mac machines. Additional concept renderings include an entire office full of furniture designed around old Power Mac G5 units.

Though interesting as a one-off furniture design project, this isn't the first time Apple hardware has been recycled. Both the iMac and the Mac Pro have been converted into fish aquariums, while a Power Mac G3 became an unusual roadside mailbox.

nike_fuelband_seNike CEO Mark Parker sat down with Bloomberg's Stephanie Ruhle to discuss the company's brand and product strategy (via The Guardian). During the 13-minute-long "Market Makers" segment, Parker confirmed that he is bullish on Apple and the wearables market, hinting at a continued partnership between the two companies at the 9:45 mark.

Though Nike recently discontinued further development on its FuelBand fitness wearables, the sports and fitness company is not ready to abandon the wearables market, instead waiting for the market to mature beyond it current geeky status.

"I think it’s going to be a big part of the future, absolutely," said Parker. "I think the form it takes is critical. You can go from the very geeky kind of wearables today – we’ve all seen some of those – to what I think you’ll see in the future, things that are more stealth, more integrated, more stylish and more functional, yes."

Echoing his earlier comments, Parker suggested Apple may be part of Nike's wearables strategy with the Nike CEO noting that the two companies that have a long history of working together can do things together they couldn't do alone.

"Technologically we can do things together that we couldn’t do independently," Parker said. "So yeah, that’s part of our plan, to expand the whole digital frontier in terms of wearables, and go from what we say is tens of millions of users – right now there’s 25 million Nike+ users – to hundreds of millions."


Parker wouldn't divulge details on any upcoming Apple-Nike collaborations, but the companies traditionally have worked together to promote each other's health and fitness technologies. Apple has sold the FuelBand fitness bracelet in its retail stores, while the Nike+ Move app was among the first to support the M7 motion co-processor in the iPhone 5s.

The fitness partnership between Apple and Nike actually extends back to 2006 with the launch of Nike+iPod products such as the "Sport Kit" that allowed users to embed sensors in Nike shoes to wirelessly communicate exercise information to the iPod nano. Parker also has a long-term relationship with the Apple's leadership, having worked closely with both Steve Jobs and Tim Cook, with Cook having served on Nike's Board of Directors since 2005.

gt_sapphire_furnaceEarlier this week, it was revealed that Apple and its sapphire supplier GT Advanced Technologies had reached an agreement to effectively dissolve their partnership and allow GT to shut down operations at the Apple-owned sapphire production plant in Mesa, Arizona. Under the deal, GT will seek to sell off the over 2,000 sapphire furnaces currently installed at the facility, with the majority of the proceeds from those sales going to Apple to help repay $439 million in loans Apple made to help the operation get underway.

GT has now officially announced the deal and published the full agreement, redacting only the amounts Apple will be paid per furnace sold.

Under the terms of the settlement agreement, which is subject to approval by the Bankruptcy Court, GT will be released from all exclusivity obligations under its various agreements with Apple. GT will retain ownership of all production, ancillary and inventory assets located in Mesa and Apple is provided with a mechanism for recovering its $439 million pre-payment made to GT over a period of up to four years without interest, solely from a portion of the proceeds from ASF® [Advanced Sapphire Furnace] sales. The agreement provides for a mutual release of any and all claims by both parties. As a result of the agreed upon terms, GT retains control of its intellectual property and will be able to sell its sapphire growth and fabrication technology, including ASF and Hyperion™, without restrictions.

While the two companies are severing their production agreement, they will remain in contact as GT continues its research work focused on producing larger sapphire boules of over 165 kilograms. The two companies will meet at least quarterly to discuss GT's progress on that front, with potential collaboration still possible if both sides agree to move forward.

GT filed for bankruptcy earlier this month as it became clear the company was spending over a million dollars per day to run the operation even as it was apparently unable to produce sapphire of the quality required by Apple. GT's troubles began as early as February as it was late in meeting milestones to qualify for Apple loan payments. Apple's continued withholding of the final $139 million payment may ultimately have resulted in GT deciding to pull the plug on the operation, even as Apple reportedly continued to try to help overcome GT's technical problems.

GT is looking to wind down its sapphire production operation by the end of the year, wrapping up sapphire boule production currently underway and decommissioning the furnaces to prepare them for storage and resale. Roughly 650 employees at the Arizona plant have already been laid off, and the company will continue to lay off additional employees across its locations as it brings the production partnership with Apple to an end.

(Image: GT's Advanced Sapphire Furnace)

Apple's main assembly partner for iOS devices, Foxconn, is looking to increase its presence in Apple's supply chain as it considers constructing a new plant to provide displays for the popular devices, according to The Wall Street Journal. Total investment in the project could reach $5.7 billion.

Foxconn, formally known as Hon Hai Precision Industry Co. , is discussing a possible investment with the government of Zhengzhou, about 750 kilometers south of Beijing, according to people familiar with the talks. The two sides are discussing terms such as how to divide the investment, which could reach as much as 35 billion yuan ($5.7 billion), the people said.

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The display is typically the most expensive single component in Apple's iOS devices, and the company has long sourced the parts from a variety of vendors including Samsung, LG Display, Sharp, and Japan Display. Foxconn has been seeking to improve its display expertise in recent years, pursuing a troubled partnership with Sharp as it has tried to position itself to win orders for iPhone and iPad displays.

Related Forum: iPhone

Screenwriter Aaron Sorkin has confirmed in a Bloomberg interview that actor Christian Bale will indeed star as Steve Jobs in Sorkin's upcoming biopic based on Walter Isaacson's 2011 biography of the Apple co-founder. Bale, who was said last week to be in talks for the role, met with Sorkin but did not have to audition for the part.

“We needed the best actor on the board in a certain age range and that’s Chris Bale,” Sorkin told Bloomberg Television’s Emily Chang on a coming edition of “Studio 1.0.” “He didn’t have to audition. Well, there was a meeting.”

Shooting for the film will begin in the coming months in what will be a challenging role for the established actor. Bale reportedly will appear in every frame of the movie with speaking parts that exceed three movies combined. The movie will focus on three 30-minute scenes that detail three different product launches.

The movie will be released by Sony, with Oscar-winning director Danny Boyle of Slumdog Millionaire fame associated with the project.