MacRumors

Introduced earlier this month, iOS 7.1 appears to be causing issues with personal hotspots for quite a few iPhone users around the world. Following the update, some users appear to be unable to save APN settings for personal hotspots, which have vanished following the update from iOS 7.0.6 to iOS 7.1.

While information can be entered into the APN fields of the Cellular Data Settings menu, the values do not save, and attempting to establish a tethered connection results in an error message. Apple's Support Communities currently features a 15-page thread on the issue that was started shortly after iOS 7.1 was released, with many users reporting the same problems with tethering.

Apple's support staff appears to be confused by the root cause of the issue, with several customer service representatives suggesting the problem lies with carriers. Carriers that have been contacted have indicated that it is an issue with Apple, however.

Same here. Hotspot not working since I upgraded to 7.1. Such an annoying issue. I phoned my carrier this morning and they didn’t want to get involved since “it's a device issue since settings can’t be saved". No carrier updates either when I installed 7.1. So right now, no hotspot and no one wants to get involved.

Other users have heard that it is a problem limited to carriers that do not currently have a contract with Apple. The iPhone 4, 4s, 5, and 5s all appear to be affected by the issue, and there is currently no available fix. Users in Germany, India, Austria, Spain, Serbia, Thailand, Estonia, Hungary, Belgium, Italy, Brazil, and more have reported issues with hotspots.

Apple appears poised to continue its string of setting new year-over-year records for quarterly iPhone sales, based on new data from Morgan Stanley analyst Katy Huberty. According to Huberty's "AlphaWise" smartphone tracker, Apple is on track to ship 42 million iPhones during the January-March quarter, topping the March quarter record of 37.4 million iPhones set last year.

Morgan Stanley's AlphaWise tracker follows Google Trends data, and the firm touts that it has been more accurate than analyst consensus in recent quarters. Analyst consensus and Morgan Stanley's own supply chain estimates have been pegging Apple's iPhone shipments for the quarter at 38 million units, but demand numbers appear likely to push that number up.

The strong demand appears in nearly all geographical regions, with U.S. carrier and retailer promotions in particular being cited for increasing customer interest.

One area that has not fared as well is China, which is seeing weaker momentum this quarter due to the earlier launch of the iPhone 5s/5c in that country. New iPhones have typically debuted in China several months after the first wave of launches, but Apple made strong efforts to ensure that China was included in that first wave for the latest iPhones. The January addition of China Mobile as an iPhone partner is offsetting that loss of March quarter momentum in China somewhat, but not enough to turn the overall trend for the country positive.

Apple has been named the most valuable billion-dollar company in the United States by brand identity firm Brand Finance, reports the Silicon Valley Business Journal.

The standing was revealed in a new rankings report done by the firm which listed the top 50 billion-dollar brand names in the U.S., as Apple's $104.6 billion valuation was ahead of other technology companies including Google, Microsoft and Verizon which were valued at $68.6 billion, $62.8 billion, and $53.5 billion, respectively.

Throughout the past year, a number of other sources have also regarded Apple to be among the world's most valuable companies, with brand identity firm Interbrand putting the company's value above Coca-Cola and American business magazine Forbes heralding Apple as the world's "Most Admired Company" ahead of Amazon.

Yesterday, we highlighted Haunted Empire, a new book from former Wall Street Journal reporter Yukari Iwatani Kane examining the transition Apple has undergone with the death of Steve Jobs. While the book includes a few interesting tidbits, our view was that Kane had selected anecdotes to support a predetermined conclusion that Apple is in decline.

With the book debuting today, Apple CEO Tim Cook has taken the unusual step of issuing a statement about the book, calling it "nonsense", according to CNBC. Cook's statement reads:

This nonsense belongs with some of the other books I've read about Apple. It fails to capture Apple, Steve, or anyone else in the company. Apple has over 85,000 employees that come to work each day to do their best work, to create the world's best products, to put their mark in the universe and leave it better than they found it. This has been the heart of Apple from day one and will remain at the heart for decades to come. I am very confident about our future. We've always had many doubters in our history. They only make us stronger.

The book's release comes as Apple fans continue to wait for the first major product releases of 2014. Earlier today, the company brought back the 16 GB fourth-generation iPad as a low-end model to replace the iPad 2 and released a new 8 GB iPhone 5c in several countries to offer a cheaper option compatible with LTE networks.

Update 3/18 2:22 PT: Yukari Kane has given a statement to Re/code on Cook's condemnation of her book.

"For Tim Cook to have such strong feelings about the book, it must have touched a nerve,” Kane said. "Even I was surprised by my conclusions, so I understand the sentiment. I'm happy to speak with him or anyone at Apple in public or private. My hope in writing this book was to be thought-provoking and to start a conversation which I'm glad it has."

Apple today seeded a new version of 10.9.3 to employees, reports 9to5Mac, but more importantly, the company also launched a new iTunes 11.1.6 beta, which includes an important syncing feature that has been missing since the launch of Mavericks.

According to the release notes, iTunes 11.1.6 "restores the ability to sync contacts and calendar information to your iPhone, iPad, or iPod touch from your Mac running OS X 10.9.3."

When iOS 7 and Mavericks were introduced back in September, Apple removed local syncing in favor of cloud syncing, allowing users to sync calendars, contacts, bookmarks, and notes only via iCloud. Many users were unhappy with the feature removal and their inability to sync information to their iOS devices using their Macs.

Apple's Support Communities has a 212 page thread on the issue, and MacRumors has received multiple complaints about the removal of local sync since Mavericks was released. It appears that the next version of Mavericks and iTunes 11.1.6 will restore the feature, once again allowing users to sync locally.

At the current point in time, iTunes 11.16 and the newest version of OS X 10.9.3 are only available to Apple employees, but the betas should be seeded to developers in the near future.

As promised, Google today announced its "Android Wear" project, which is designed to bring Android to wearable devices. To begin with, Android Wear will be focused on watches that will come in a range of styles from several different manufacturers.

Most of us are rarely without our smartphones in hand. These powerful supercomputers keep us connected to the world and the people we love. But we're only at the beginning; we've barely scratched the surface of what's possible with mobile technology. That's why we’re so excited about wearables—they understand the context of the world around you, and you can interact with them simply and efficiently, with just a glance or a spoken word.

Android Wear for watches is designed to offer several functions over basic time telling. The app will provide notifications, messages, and updates from social networking apps and it will include Google Now capabilities allowing users to say "Ok Google" to ask questions, send texts, set alarms, and more. The "Ok, Google" function can also be used to control other devices, pulling up a music playlist on a phone or casting a movie to the TV.

Android Wear is also designed to be health-oriented, providing reminders for exercise goals and fitness summaries. Fitness apps designed to be compatible with Android Wear will be able to give real-time speed, distance, and time information.

Google's Android developer site has gained a new section focused on wearables. Developers can obtain a Developer Preview of the software, designed to allow them to tailor existing app notifications for watches that will be powered by Android Wear.

The company is also partnering with chip makers Broadcom, Imagination, Intel, Mediatek, and Qualcomm, plus fashion brands including the Fossil Group to introduce watches powered by Android Wear in 2014.

With today's launch of a new 8 GB iPhone 5c, much discussion has been centered around the observation that the new model is available in only a handful of countries: the UK, France, Germany, Australia, and China. In a statement to Re/code, Apple reveals that its strategy is to offer a lower-cost option that is compatible with LTE networks in countries where those networks are seeing rapid growth.

“The mid-tier iPhone segment is growing year-over-year and the 8GB model provides a more affordable option for markets where LTE is becoming more established,” an Apple representative told Re/code. The iPhone 5c, unlike the iPhone 4s, which is also still sold, supports LTE networks.

The report notes that Apple may prefer not to sell the 8 GB iPhone 5c in the United States because of the popularity of subsidized phones, which sees the 16 GB model being offered for $99 or even less on a two-year contract. There are, however, plenty of other countries where subsidies are not common and where Apple has elected not to offer the new 8 GB model. The business model is even changing in the United States, where T-Mobile has led a charge to decouple device pricing from service plans. Under the new models, carriers are offering interest-free payment plans on devices and charging users separately for their service.

After the fourth-generation iPad reappeared on Apple's online storefront earlier today, the company has issued a press release confirming the return of the device to the company's product lineup. The iPad with Retina Display will replace the iPad 2 as the company's entry-level full-sized tablet option.

“Now for $399 customers can get iPad with a stunning 9.7-inch Retina display, fast A6X chip, and 5MP iSight camera, offering a dramatic upgrade in power, performance and value compared to the iPad 2 it replaces,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing. “The iPad line sets the gold-standard in mobile computing and all iPads have access to the largest and best ecosystem of more than 500,000 iPad optimized apps from the App Store.”

The 16 GB WiFi-only iPad 4 is available for $399, while the WiFi + Cellular model starts at $529 in the U.S., with both black and white color options available. The iPad with Retina Display will be sold through the Apple Online Store, Apple's retail stores and select Authorized Apple Resellers. Customers looking for additional storage capacity beyond 16 GB must purchase the iPad Air, which is available in 16, 32, 64 and 128 GB options.

In line with earlier rumors, Apple today also started selling a new 8 GB iPhone 5c in select countries. The new 8 GB model with five color options is available in Apple's UK online store for £429 unlocked, making it £40 cheaper than the comparable 16 GB model.

Distribution of the new lower-capacity model is, however, rather limited, with Apple confirming to Fortune's Philip Elmer-DeWitt that the 8 GB model will only be available in the UK, France, Germany, Australia, and China.

As indicated by multiple reports yesterday, Apple has officially launched an 8 GB version of the iPhone 5c and relaunched a 16 GB version of the previously-discontinued fourth-generation iPad. The 8 GB iPhone 5c is currently being sold in Apple's European Online Stores for £429 unlocked in all of the existing color options, where it is £40 cheaper than the 16 GB model and is expected to become available in the U.S. later today. The 16 GB iPad 4 is available worldwide and retails in Apple's U.S. Online Store for $399, while customers may also purchase a cellular version for $130 more at $529.

The relaunch of the 16 GB iPad 4 has resulted in Apple discontinuing the three-year-old iPad 2, although the company's European stores still currently show the iPhone 4S being sold alongside the new 8 GB iPhone 5c.

Apple's iPhone 5c has seen lower-than-expected sales since its debut last September due to high demand for the flagship iPhone 5s. The move also comes amid a renewed push by Apple to promote the iPhone 5c, as the company has debuted a new set of playful dot-centric for the phone on popular blogging platform Tumblr as well as the front page of Yahoo.com and in recent issues of The New York Times.

Meanwhile, the iPad 4 has been brought back into Apple's lineup after being removed in favor of the iPad Air last October. However, KGI Securities analyst Ming-Chi Kuo predicted in February that the company would shift from the iPad 2 to the iPad 4, as the latter sports Apple's A6X chip and 1GB memory compared to the former's A5 processor and 512 MB of memory.

Both devices are available to order from Apple's Online Store or through the company's retail locations.

Apple supplier Pegatron is expected to start production on the iPhone 6 in the second quarter of this year at its new Kunshan, China plant, reports the Commercial Times [Google Translate].

Pegatron is already opening up a new factory space and recruiting workers in China in an effort to meet orders to manufacture the new phone, says Reuters. In early January, it was reported that Pegatron was expected to win a new contract to manufacture half of the iPhone 6's supplies. Previously, Pegatron was responsible for assembling the iPad mini and iPhone 5c, while Apple's main supplier, Foxconn, assembled many of the iPhone 5s units.

While the newspaper reported production would start ramping up in the second quarter, it did not report when the phone could come out, how many units Pegatron would manufacture, or how many workers the company was hiring. However, they do note that fellow Apple supplier Hon Hai would be the other primary manufacturer of the phone.

In 2013 Apple shifted iPhone 5c production to Pegatron in order to improve supply chain risk management, allowing Apple to expand its supply lines and minimize risk of potential supply chain disasters.

The iPhone 6 has been rumored to launch with two different versions of the phone, one with a 4.7-inch display and one with a 5.7-inch display. While there is no rumored release timeframe for the device, Apple typically releases its new iPhone models in the fall.

Microsoft will launch its Office suite on the iPad at a media event on March 27 according to a report from The Verge. The suite -- including Word, Excel and PowerPoint -- has been in the works for years, with recent reports saying the lack of Office on the iPad was costing Microsoft as much as $2.5 billion per year.

The company released a version of Office on the iPhone last year, part of its Office 365 subscription service, and The Verge says the iPad version will also require a 365 subscription.

Microsoft has been working on the software for a number of months now, having first introduced an iOS version of Office for the iPhone in June last year. We understand the iPad variant of Office will be similar to the iPhone version, and will require an Office 365 subscription for editing. We’re told that document creation and editing is fully supported for Word, Excel, and PowerPoint apps. Overall, the interface and features are expected to be similar to the existing iPhone version.

The site says new Microsoft CEO Satya Nadella will expand on his "mobile first, cloud first" strategy, something demonstrated by the free launch of the Mac version of OneNote earlier today.

Microsoft is also said to have an update for Office for Mac coming in the Spring of 2014.

Update 4:44PM PDT: Twitter user @rgonzalezagui posted what he says is a screenshot of Office for iPad leaked by a Microsoft employee:

Apple's Mac Pro only supports installations of Windows 8 or later with Boot Camp, according to an updated Apple Support document that lists versions of Windows compatible with the 2013 Mac Pro.

Boot Camp Assistant on the Mac Pro also specifies that it only includes support for Windows 8 or later, as evidenced in a screenshot from Twocanoes Software (via MacWindows) indicating that users are not able to install earlier versions of Windows. The 2013 Mac Pro is the first Mac that does not include support for Windows 7 with Boot Camp 5.

It is unclear why Apple has chosen to drop support for Windows 7 on the Mac Pro, but it could be a sign that the company intends to discontinue support for the operating system in future Macs given its advanced age.

This decision may not sit well with users, as Windows 8, released in 2012, has not been particularly popular. As of this month, Windows 8 and 8.1 only represented 10.68 percent of total worldwide OS market share, while Windows 7 represented 47.31 percent. Combined, Windows is installed on 90.84 percent of the world's computers.

Apple's upcoming iPhone 6 is widely rumored to include a larger display, which could encourage a significant number of users to upgrade in 2014, according to analyst Brian Marshall of ISI Group, who released a note to investors today.

Echoing past iPhone 6 rumors, Marshall suggests Apple will release two versions of the phone, one with a 4.7-inch screen and one with a 5.5-inch screen. The launch of two phones, both of which offer a total redesign of the existing 4-inch iPhone 5s, could spark a massive upgrade cycle.

Apple's current installed base is estimated to be at 260 million users, and ISI Group calculates that half of today's iPhone purchases are made by upgraders, users who are upgrading their iPhones from an existing iPhone to a new version of the product.

ISI indicates that while the upgrade rate (percentage of installed base upgrading devices in a given quarter) was at 10 to 11 percent in 2011–2012, it has now dropped to approximately 9 percent because users have fewer reasons to upgrade with the iPhone 5c and 5s not introducing any significant design changes.

Peak quarters have seen upgrade rates of 12 to 14 percent, and ISI expects a similar upgrade rate during the second half of 2014 when the iPhone 6 is launched, resulting in a higher number of sales. An iPhone 6 with an increased screen size may also lure customers who have switched to Android from the iPhone because of the latter's lack of a large display.

"Large-screen envy" is prevalent among the iPhone installed base and we believe a ~5” form-factor iPhone would spark a massive upgrade cycle as well as many "Android switchers" returning back to the iPhone (we refer to this as the “mother lode” of all Apple upgrade cycles).

Citing both "large-screen envy" and "pent-up demand" ISI Group suggests the new iPhone 6 models could result in an extra $3.00 earnings per share following release in the second half of 2014.

Higher demand for an iPhone during a redesign year is not unreasonable, as it has now been two years since the 2012 introduction of the iPhone 5. While the iPhone 5s included multiple internal improvements and the Touch ID fingerprint sensor, it retained the same 4-inch display and design of the iPhone 5, as did the iPhone 5c, which was just a repackaging of the existing model.