MacRumors

Billionaire Carl Icahn has abandoned his effort to encourage Apple to increase its stock repurchasing program, according to a new letter addressed to Apple shareholders. Icahn had aggressively pushed for an increased stock buyback of up to $150 billion, going so far as to recommend a proxy vote for shareholders to support his agenda.

In explaining his reversal, Icahn points to a recent decision by Apple to repurchase $14 billion on a dip in the company's stock price following its most recent earnings announcement. Well-known proxy advisory firm Institutional Shareholder Services (ISS) this week also sided with Apple and recommended against Icahn's scaled-back $50 billion stock buyback plan presented to shareholders.

That being said, we also agree with ISS's observation, taking into account that the company recently repurchased in "two weeks alone" $14 billion worth in shares, that "for fiscal 2014, it appears on track to repurchase at least $32 billion in shares." Our proposal, as ISS points out, "thus effectively only asks the board to spend another $18 billion on repurchases in the current year."

As Tim Cook describes them, these recent actions taken by the company to repurchase shares have been both "opportunistic" and "aggressive" and we are supportive. In light of these actions, and ISS's recommendation, we see no reason to persist with our non-binding proposal, especially when the company is already so close to fulfilling our requested repurchase target.

Icahn went on to say that he is excited about Apple's future, which will see the company introduce products in new categories this year. Rumors strongly suggest Apple is working on a watch/fitness band with sensors to potentially measure steps, calories, heart rate, glucose levels and more. Apple has assembled a "dream team" to work on this iWatch product, hiring a number of the best and brightest scientists from the medical device and health sensor field.

Apple's 2014 annual meeting of shareholders is scheduled for February 28, 2014.

To commemorate the 50th anniversary of The Beatles' American debut, Apple today has expanded the lineup for its Apple TV set-top box by adding a channel dedicated to the legendary rock group.

The channel allows users to view The Beatles' groundbreaking performance on "The Ed Sullivan Show" for a limited time, and also offers download links to The Beatles' U.S. releases, which are available digitally for the first time on iTunes.

The Beatles' music originally debuted on iTunes in November 2010 after years of speculation and prolonged negotiation between record label EMI and Apple. The group's music went on to sell 2 million songs and 450,000 albums in its first week on the iTunes Store, and eventually reached overall sales of 5 million songs and 1 million albums within in two months. Exclusive ringtones by The Beatles were made available on iTunes in February 2012, and a digital compilation of 59 rare and unheard recordings by the group also launched last December.

Thanks, Mike!

As promised, Dong Nguyen, the developer of Flappy Bird, has removed the popular game from the App Store. Flappy Bird has been the number one downloaded free app on Apple's App Store for almost a month. The game was generating $50,000/day in revenue from in-app ads.

Nguyen had previously expressed frustration at the attention he has received since the sudden popularity of his game. In a tweet last week he said "Please give me peace.", and yesterday, he announced that the game would be removed from the App Store today.

Flappy Bird no longer shows up in search, developer's app listing, and Top Free games. The direct link for the game still shows in the App Store at the time of this writing, but is unavailable for download.

In subsequent tweets, he said the removal was not due to legal reasons and that he was not interested in selling the game.

If you already have downloaded the game, you can still play it even though its been removed from the App Store.

Dong Nguyen, the developer of Flappy Bird, the viral hit that remains at the top of the App Store rankings, has promised on Twitter to remove the app from the App Store because the sheer amount of attention the app has drawn is something he isn't interested in dealing with.

Nguyen has repeatedly said on Twitter that the press is "overrating the success" of his games and that the sudden fame and attention is something he doesn't want, saying "please give me peace". He said today that though he is planning to remove Flappy Bird from the App Store, he will continue to make games. However, he isn't interested in the future of Flappy Bird and he won't sell the app to another developer.

Yesterday, before the shutdown was announced, Flappy Bird was updated to remove all social sharing features.

Apple CEO Tim Cook compared Android to Europe in his wide-ranging interview with The Wall Street Journal yesterday, saying that the PC and mobile platform wars couldn't be compared. Cook said that Android is made up of many different things under one banner, as opposed to Windows which was one uniform platform.

Cook's statement was in response to a question asking if the mobile device market will ultimately follow the PC market, where Apple remains a comparatively niche player compared to the dominance of Windows.

He said that the examining the PC and mobile markets as a direct comparison doesn't work, largely because one of the historical differences between the Mac and Windows was the lack of availability for applications on the Mac, while iOS has a very strong developer base.

"There was a vast, vast difference in the number of applications that were available for the Macintosh", Cook said. And, over the years, the gap continued to grow because the Mac lost some key applications.

However, on mobile devices, Apple has more than one million applications with half of those specifically optimized for the iPad. On Android, Cook says, there are only 1,000 apps optimized for tablets. He says the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

The other thing is that Windows pretty much was one thing. Android is like Europe. Europe was a name that somebody came up with for Americans who didn’t understand that Europe was a lot of countries that weren’t like U.S. states. They were very different. Android is many things. How many people who use a Kindle know that they’re using Android? And you see what Samsung is doing by putting more and more software on top. I think it’s night and day. The compare is so off.

Cook also noted that he doesn't view the PC market a a monolith because he works at Apple -- he joined the company from Compaq and said he understands the PC world "at that time because [he] was in it". He continued, "if you really talk to the people who went through it... I don't think any of them would tell you it's the same" as the mobile device market today.

Elsewhere in the interview Cook revealed that Apple has repurchased $14 billion in stock over the past two weeks, and that the company is open to making large acquisitions if it makes sense. He also reiterated that Apple is working on "some really great stuff" in new product categories, an assertion that Apple executives have made numerous times over the past few months, and that Apple is spending an enormous amount of time and money on the "Macs of the future".

Note: Due to the political nature of the discussion regarding this topic, the discussion thread has been moved to 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.

A vulnerability in the Snapchat app opens the iPhone up to denial-of-service attacks that can cause the device to freeze and crash, according to cyber security researcher Jamie Sanchez [Google Translation] (via The Los Angeles Times).

A weakness in the app’s system can allow a hacker to send thousands of messages to a Snapchat user in seconds, which can cause a crash that requires a hard reset to fix. Tokens generated by the app used to verify user identity can be reused by hackers to send a flood of messages.

By reusing old tokens, hackers can send massive amounts of messages using powerful computers. This method could be used by spammers to send messages in mass quantities to numerous users, or it could be used to launch a cyber attack on specific individuals, [Sanchez] said.

Sanchez demonstrated the flaw for The Los Angeles Times, sending a reporter 1,000 messages within five seconds in a denial-of-service attack, which caused the reporter's iPhone to freeze until it restarted.

The security researcher declined to contact Snapchat with his findings as he believes the startup "has no respect for the cyber security research community" after ignoring previous app vulnerability reports.

Snapchat has faced multiple problems as its private messaging app has grown in popularity, including vulnerabilities that allowed users to bypass screenshot notifications and a recent security breach that compromised the user names and phone numbers of more than 4.6 million customers, which Snapchat was warned about ahead of time by a security group.

When asked about this particular vulnerability, Snapchat said it was unaware of the problem but interested in learning more.

Apple hasn't "given up on the Mac" like some of its competitors and has "some really cool things" coming, according to CEO Tim Cook who sat down for a wide-ranging interview with The Wall Street Journal.

Answering a question about new product categories, Cook said the company is going to focus on "only doing a few things and doing them great", but that Apple does have significant new products, in new categories, in the works.

He went on to say that he felt Apple has a long way to go in its existing categories as well, the Mac in particular.

I think Apple can grow well with great improvements and new products on its existing category of products.

[...]

And we haven't given up on the Mac. A lot of people are throwing in the towel right now on the PC. We're still spending an enormous amount on really great talent and people on the Macs of the future. And we have some really cool things coming out there. Because we believe as people walk away from the PC, it becomes clear that the Mac is what you want if you want a PC.

According to the well-sourced KGI Securities analyst Ming-Chi Kuo, Apple is planning to release an ultra-slim 12-inch Retina MacBook in the middle of 2014 and it could be one of the "really cool things" that Cook talked about.

Elsewhere in the interview Cook revealed that Apple has repurchased $14 billion in stock over the past two weeks, and that the company is open to making large acquisitions if it makes sense. He also reiterated that Apple is working on "some really great stuff" in new product categories, an assertion that Apple executives have made numerous times over the past few months.

Investor Carl Icahn, who has been agitating for an increase in Apple's stock repurchase program, tweeted today that Wall Street is "still not listening" to Cook's statements and Apple's stock price remains relatively flat.

California State Senator Mark Leno is introducing a bill that would require all cellular phones sold in the state to include antitheft technology, reports The New York Times. This measure is being introduced as a way to curb smartphone thefts, which are on the rise in major metropolitan areas like San Francisco and New York City.

"With robberies of smartphones reaching an all-time high, California cannot continue to stand by when a solution to the problem is readily available," Senator Leno said in a statement. "Today we are officially stepping in and requiring the cellphone industry to take the necessary steps to curb violent smartphone thefts and protect the safety of the very consumers they rely upon to support their businesses."

Co-sponsored by San Francisco’s district attorney George Gascón, this kill switch requirement could go into effect as soon as January 1, 2015, if passed by the state legislature and signed into law by Governor Jerry Brown.

Apple likely won't be affected by the bill as it introduced its own antitheft technology with iOS 7's Activation Lock feature. This feature locks the device to the user's iCloud account and is automatically turned on when Find My iPhone is enabled. Thieves are prevented from turning off Find My iPhone, signing out of iCloud or wiping the device without supplying the original account credentials. This feature appears to meet the antitheft requirements of Leno's bill.

Any advanced mobile communications device that is sold in California on or after January 1, 2015, shall include a technological solution that can render the essential features of the device inoperable when the device is not in the possession of the rightful owner. A technological solution may consist of software, hardware, or a combination of both software and hardware, but shall be able to withstand a hard reset. No advanced mobile communications device may be sold in California without the technological solution enabled.

Gascón and New York Attorney General Eric Schneiderman expressed interested in Activation Lock when it was introduced at WWDC 2013. After reviewing the technology, Gascón and Schneiderman were impressed with the feature, praising Apple for taking "an important first step towards ending the global epidemic of smartphone theft."

Cellular industry trade group CTIA will likely oppose the bill and its terms that require a $2500 fine for every phone sold without antitheft technology. The group has argued against kill switches and offered a nationwide database of stolen phones as an alternative. Law enforcement officials, however, claim the US-based blacklist is ineffective as many stolen phones are sold overseas.

A new report from 9to5Mac claims iOS 7.1 will indeed be released to all iOS users in March, representing the first major revision since iOS 7 was launched publicly in September of last year.

Sources note the next version of iOS 7 will continue with the visual improvements, minor tweaks and bug fixes reported in earlier beta versions seeded to developers.

While recent reports are pegging a launch sooner than later, reliable sources say that Apple is currently planning to ship iOS 7.1, the first significant update to iOS 7, in March. The iOS 7.1 update is said to not have any “secret features,” and it will basically be what we have been told to expect by the past five betas: some user-interface tweaks in the Phone app, an improved Calendar app, speed improvements, and numerous bug-fixes.

BGR originally cited a March release date for iOS 7.1 back in late December, but a follow-up report earlier this week seemed to hedge on that claim somewhat by noting that the update was expected in the "coming weeks." Slowing increments of build numbers from the developer beta versions suggest the software is nearing a public launch, but whether that date lands in late February or the early March is not clear.

Previous iOS 7.1 betas have included various improvements such as a new "Button Shapes" option in Accessibility, keyboard tweaks that indicate shift and caps locks, a new event list view within the Calendar app and refined icons for the Phone, FaceTime, and Messages app. The unreleased iOS in the Car feature has also been refined in the iOS 7.1 beta testing period, but it is unclear when the functionality will be made available to the public.

Details on features in past beta releases can be found in our previous beta posts: Beta 1, Beta 2, Beta 3, Beta 4 and Beta 5.

Last month, Apple reportedly reduced the licensing costs for accessory manufacturers who are producing official gear for the iPhone, iPad or iPod. According to Mac Otakara, this reduction applies to Lightning cables as well as other accessories that are part of Apple's MFi (Made for iPod/iPhone/iPad) Program.

Made for iPod (MFi) was launched in 2005 as a licensing and quality control program that allowed iPod accessory makers to ship their products with an Apple-approved "Made for iPod" label. At launch, Apple reportedly charged companies that wanted to participate in this program a 10% fee based on the wholesale cost of the device.

Apple expanded its MFi Program to include the iPhone and iPad as those devices were added to the company's product portfolio, with Apple's Lightning cable introduced last in 2012 falling under the program's guidelines due to the serialized authentication chip embedded in the connectors. At last year's Worldwide Developers Conference, Apple again extended the licensing to include game controllers for iOS devices.

Those game controllers have generally arrived with higher pricing than expected by consumers, with some of the blame for pricing and quality issues being placed on Apple's requirements administered through the MFi Program. One high-profile controller, the SteelSeries Stratus, did, however, see a $20 price cut in the few weeks between announcement and launch last month, and while a cut to MFi licensing fees undoubtedly would not have accounted for the entire price drop, it may have given SteelSeries a bit of flexibility to make its pricing more competitive.

Beyond licensing and technical requirements, Apple allegedly also requires manufacturers in the MFi Program to agree to the company's supplier responsibility code. This code takes steps to ensure that employees have access to safe working conditions and requires companies to submit to inspections that ensure compliance with Apple's Code of Conduct.

Apple will launch products in new categories and the company is working on "really great stuff", according to an interview with CEO Tim Cook in The Wall Street Journal this evening.

He demurred when asked about specific possible products, but said anyone "reasonable" would consider Apple's upcoming products to be in new categories.

Cook has said on prior occasions that new product categories are coming for Apple in 2014 and, with this interview, he is likely looking to encourage spooked investors that Apple is still focused on growth.

Cook said in the interview that Apple remains a "growth company" and has significant opportunities in existing products as well as new ones. In addition, Apple strives to be the number one smartphone, tablet, and computer maker in the world.

He said his statement that Apple doesn't aim to make the most phones has been misunderstood.

"I don't view that as being satisfied with being small or however you want to define it," he said. "I just want to say that the macro thing for us is making a great product and we must do that. If we can't do that, we're not going to force ourselves to hit a price point that makes us produce a product that we're not proud of because we lose who we are in that. We're not going to do that."

Apple executives have repeatedly said that they are only interested in making the best products in the world, not generating revenue for revenue's sake. Tim Cook has previously said that Apple is "focused on making great products that enrich lives" and that the company is "deeply committed to doing this and maniacally focused on it." He said last month that innovation is "deeply embedded" at the company and that Apple has "no issue" coming up with new ideas.

Elsewhere in the interview Cook revealed that Apple has repurchased $14 billion in stock over the past two weeks, and that the company is open to making large acquisitions if it makes sense.

The City of San Francisco today approved Apple's plans to build a new retail store in the city's famous Union Square, taking over the former Levi's building at the corner of Post and Stockton streets.

According to an Apple representative presenting the company's plans to the city's planning commission, the flagship store will be "more iconic" than the well-known Fifth Avenue glass cube retail store in New York City, reported ifoAppleStore's Gary Allen after attending the meeting.

Apple originally filed plans to move its existing Stockton Street store to the prime Post Street location back in May of 2013, but the company was forced to revise its initial building plans after critics objected to the removal of the historical Ruth Asawa fountain and the installation of an 80-foot wide wall along a key pedestrian and transit corridor.

Revised plans for the site were filed in August, and Apple pledged to move the fountain to a nearby location, add an eight-foot wide window, and move the glass wall of the store back by four feet.

The commission has now accepted Apple's second proposal with one small caveat -- the company will need to offer improved accessibility options for the store's upper floor. Earlier today, the San Francisco Historic Preservation Commission also approved a permit for the project, giving Apple a green light to move on with the store's construction.

Apple has repurchased $14 billion of its own stock in the two weeks following its first quarter earnings call on January 27th, according to a report in The Wall Street Journal.

The Journal spoke to Apple CEO Tim Cook who said that Apple wanted to be "aggressive" and "opportunistic" with its repurchases after Apple's share price dropped 8 percent the day after the results were reported.

With the latest purchases, Mr. Cook said Apple had bought back more than $40 billion of its shares over the past 12 months, which Mr. Cook said was a record for any company over a similar span.

"It means that we are betting on Apple. It means that we are really confident on what we are doing and what we plan to do," said Mr. Cook, speaking in a conference room at the company's corporate headquarters here. "We're not just saying that. We're showing that with our actions."

He went on to say that the company would share "updates" to its buyback program in March or April, roughly a year after it more than doubled its capital return program to $100 billion. Apple has bought back $40 billion in shares over the past 12 months.

Cook said that though Apple has not made any large acquisitions, it is open to making a big purchase if it made financial sense: "We have no problem spending ten figures for the right company, for the right fit that's in the best interest of Apple in the long-term. None. Zero."

As of its earnings call last month, Apple had $158.8 billion in cash, with $34.4 billion located in the United States. It's likely that the repurchase was done entirely with Apple's domestic cash.