MacRumors

Well-known Vietnamese blog Tinhte.vn today published images that reportedly show the design of Apple's next generation iPad Air 2. The pictured device has the same general form factor as the existing iPad Air, but includes a thinner 7 mm profile that measures roughly the same as the iPhone 6 and 6 Plus and thinner than the current 7.5 mm iPad Air. In line with previous rumors, the iPad Air 2 model also includes a home button with a Touch ID fingerprint sensor.

While this latest report includes detailed photographs and a video, they only give us a hint at Apple's next-generation iPad as the device in the photos is described as a dummy model used by accessory manufacturers to test out and showcase their designs and not an actual iPad Air 2 unit leaked from a Foxconn assembly line. Similar to previous leaks, the iPad model has the same external design features seen in earlier leaks and in MacRumors' own dummy unit on hand since June.

Of perhaps most note, the Tinhte.vn and other dummy models include two distinctive small holes in the area of the rear camera -- one on the back and one of the side of the casing. The hole closest to the camera is undoubtedly for a microphone, while the other hole likely marks the presumed location of the mute/rotation switch, which is not depicted ini full on the models. Today's report and an earlier one have suggested this hole is for a microphone rather than simply marking the mute/rotation switch location, but we believe this interpretation is likely incorrect.

Apple is expected to unveil its iPad Air 2 and possibly a new Retina iPad mini at a press event to be held on October 16. The next-generation iPad Air is rumored to included a faster A8 processor, anti-reflective display, Touch ID, and a gold color option.

Quanta Computer has begun production on Apple's ultra-slim 12-inch MacBook and will look to ramp up its efforts beginning November, reports Digitimes. Despite these newest efforts however, the report also states that the notebook will not be ready in time for this holiday season.

Since initial production of 12-inch MacBook Air has not yet reached a satisfactory yield rate, component makers and Quanta are making efforts to hike yield rates for the time being, the sources said. As initial production is in limited volumes, 12-inch MacBook Air may not be able to hit the store shelves in time for Christmas, the sources indicated.

Specifically, component makers are reportedly having issues with the new MacBook Air's ultrathin chassis, which is said to be slimmer than the current 11-inch and 13-inch MacBook Air. The supply chain sources also add that the 12-inch MacBook Air will come with a touch-enabled Retina display.

Rumors of an ultra-slim 12-inch MacBook from Apple have gained traction throughout the past few months, as reports from Jack March last month indicated that the notebook would launch in multiple color options and feature fanless internals. A fanless machine would also suggest that the machine would adopt an ultra low-power processor, such as the Broadwell-Y Core M processors recently announced by Intel.

However, a touch-enabled Retina display seems less likely for the 12-inch MacBook, as the inclusion of one would greatly increase the cost of the machine. A multi-touch 12-inch MacBook would also likely conflict with Apple's rumored 12.9-inch iPad Pro, which is said to be launching early next year.

March's report previously indicated Apple appears to be aiming for a mid-2015 launch for its 12-inch notebook. The notebook will reportedly come in silver, gold, and space gray options.

Hours after Apple seeded the second iOS 8.1 beta to developers, developer Hamza Sood has located the Apple Pay setup screen in the Passbook app, the Apple Pay setup screen in the initial iOS 8.1 setup and Apple Pay setup on the iPad. Previously, Sood had found the Apple Pay setup screen within the Settings app.

The setup prompt within Passbook is similar to the setup prompt to add passes, educating potential users on what the service is before providing a link to where users can input and scan their credit cards for use. Potential users have the choice to either input their credit card numbers via the keyboard or to take a photo of their card and have it inputted automatically.

The iPad gets the same setup screen as the iPhone version, but does not mention the ability to use Apple Pay in a retail store as no current iPads contain the NFC technology required to use the feature and it is uncertain whether it could be included in future iPads. Additionally, Apple Pay requires Touch ID, which current iPad models do not have, although future iPads are expected to have the new Touch ID home button.

iOS 8.1 is likely to be the update to include Apple Pay, although Apple has not yet flipped the switch within the betas seeded to developers. Instead, the company seems to have been preparing the features behind-the-scenes. Alongside Apple Pay, iOS 8.1 is expected to include a host of bug fixes for issues in iOS 8, including a fix for Bluetooth connectivity problems.

A new report from KGI Securities' Ming-Chi Kuo suggests that Apple's sapphire partner GT Advanced Technologies' recent filing for Chapter 11 bankruptcy protection will not affect its upcoming Apple Watch. However, he cautions that it does raise concerns about the possibility of future iPhones using sapphire displays.

Bankruptcy has no impact on Apple Watch. As the Apple Watch sapphire cover lens uses an ingot of less than 6-inches, and as drop-test requirements aren’t so stringent as those of iPhone, general ingot manufacturing processes such as KY suffice for Apple Watch. This is why there are abundant sapphire ingot suppliers to choose from for Apple Watch. According to our survey, aside from GTAT, other Apple Watch sapphire ingot suppliers are Hansol (KR) and Harbin Aurora Optoelectronics (CN). We therefore don’t think GTAT’s bankruptcy will affect sapphire ingot supply to Apple Watch.

... but it raises uncertainties on iPhone touch panel use of sapphire cover lens.

Kuo suggests that GT Advanced's ASF (advanced sapphire furnace) sapphire ingot isn't the only one it's considering to use for iPhone displays, though it is the company's preference due to the superior drop-test performance of GT Advanced's sapphire. And while Kuo believes that Apple still wants to use sapphire displays for iPhones, the bankruptcy of GT Advanced will likely result in bottlenecks in ASF sapphire production. Other sapphire ingot suppliers are unlikely to benefit, as they do not measure up to Apple's higher drop-test standards.

Apple had been widely expected to include sapphire display covers on some iPhone 6 models, but that development did not arrive. As Kuo notes, Apple still plans to use sapphire displays for Apple Watch, as it uses an ingot less than 6-inches and Apple's standards for drop-tests on the Watch are not as stringent as those for iPhone.

Apple's iPhone continues to grow in popularity with U.S. teenagers, according to Piper Jaffray analyst Gene Munster's latest semiannual teen survey, which asked approximately 7,200 teens with an average age of 16 years about their device usage habits and future buying plans.

67 percent of surveyed teens owned an iPhone, compared to 61 percent in the Spring survey, and 73 percent of teens expect their next phone to be an iPhone. Much of Apple's gains in ownership came from Android, which lost five percentage points over the last several months. iPhone usage among teens may jump significantly in the next few months, as the survey was conducted just before the introduction of the larger-screened iPhone 6 and 6 Plus.

While iPad ownership remained high at 66 percent, there was no growth compared to the Spring survey. Android tablets also saw ownership numbers drop, and of customers planning to buy a tablet in the next six months, 60 percent plan to choose an iPad Air or iPad mini.

As for the upcoming Apple Watch, interest among teenagers remains relatively low. Only 16 percent of teens said they would be interested in purchasing an Apple Watch for $350, down slightly from the Spring survey where 17 percent expressed interest. Munster's survey was, however, conducted before the Apple Watch was announced, so interest numbers may shift in the next Spring survey.

Younger customers have always been important to Apple as it gives the company a chance to create lifelong customers. Apple's recent acquisition of Beats Electronics, for example, may have partially taken place as an effort to remain relevant among teenage users. In a survey of 10,000 students, a quarter believed the deal would make Apple more "cool," while 50 percent believed the acquisition would increase Apple's popularity among students.

Apple today released a second golden master candidate of OS X Yosemite to developers, a week after releasing the first candidate golden master and the fourth public beta. Apple has also released the fifth public beta to those who signed up to beta test the new Mac OS.

The latest Yosemite update, build 14A386a, can be downloaded from the Mac App Store and through Apple's Mac Dev Center.

OS X Yosemite brings a flatter, more modern look to OS X, with an emphasis on translucency and redesigned dock, windows, and more. It also includes a multitude of new features, such as improved integration with iOS 8 through Continuity, a new "Today" view in Notification Center that offers integration with third-party apps, a retooled Spotlight search with new data sources, and several new features for apps like Mail, Safari, and Messages.

Over the course of the beta testing period, each Developer Preview has added new features and refined the look and performance of OS X Yosemite, although changes have become less obvious in more recent builds as Apple begins finalizing Yosemite ahead of its public release, which is expected in late October.

The current build, like the previous golden master candidate, may not be the final version of OS X Yosemite, depending on the outcome of final testing. Last year, Apple seeded multiple golden master versions of OS X Mavericks, with the final version coming a couple of days ahead of the software's public release.

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.

While its mobile device division struggles, Samsung's components business is expected to increase 10 percent over the coming year, accounting for more than 40 percent of operating profits in 2015.

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.

In late September, Apple stopped signing iOS 7.1.2, making it impossible for iOS 8 users to downgrade back to a previous-generation operating system. The company is working to combat the issues facing iOS 8, however, simultaneously working on iOS 8.1, 8.2, and 8.3.

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.