MacRumors

SemiAccurate reports that Apple is ramping up its efforts to control its own supply chain, seeking to produce its own chips and buying into a chip fabrication facility to accomplish that goal.

Apple has just done something that SemiAccurate has been expecting for months and entered the fab industry. No we are not joking, Apple just bought into a fab, and not in a trivial way either.

With the majority of the report behind a paywall, details remain scarce, but the teaser walks through how Intel, TSMC, Global Foundries, and IBM are unable to entirely meet Apple's chip needs as it looks to move away from Samsung as the manufacturer of A-series chips for its iOS devices.

Tags associated with the article include all of those companies, as well as "UMC", which undoubtedly refers to United Microelectronics Corporation, a Taiwanese semiconductor company with a focus on the foundry business, hinting that UMC may be involved in Apple's effort in some manner. UMC currently operates a number of fabs in Taiwan, and also has a facility in Singapore that the company just weeks ago designated as its Center of Excellence for advanced specialty process technologies.

Any move by Apple to produce its own chips is almost certainly years in the future given the difficulty of building up that expertise, and so Apple will need to continue relying on manufacturing partners for its A-series chips for the foreseeable future. Just last month, TSMC reportedly confirmed that it has struck a deal to produce A-series chips for Apple, offering the iOS device maker a path to minimize its reliance on Samsung. The TSMC deal comes after years of rumors as TSMC suffered from technical glitches and other issues that kept Apple from committing to the chipmaker.

SemiAccurate has a mixed track record, having correctly predicted Apple's shifts in graphics chip suppliers for its Mac lines several times, but also incorrectly claiming in May 2011 that Apple would soon be moving its Macs to ARM processors. More recently, the site has been keeping on top of Apple's work to recruit AMD engineers for its "Orlando GPU Design Center".

Update: CNET says that the report cites Globalfoundries as Apple's partner in the fab project. CNET's own sources indicate that the two companies are still "kicking the tires" and that no deal has been yet been reached.

"This isn't the first time. [Apple and Globalfoundries] have kicked the tires before. But [Apple] is doing this again to look at a fab to offset risk," said the source.

The source continued: "Globalfoundries and Samsung have the same technology foundation based on an IBM joint development agreement. So that gives [a possible deal] a little less risk if they're looking at a secondary option to offset [the current chip manufacturing] with Samsung. Samsung's fab in Austin and GF's fab in New York could both ramp a similar product and GF could offset capacity that Samsung can't fulfill."

Taiwan's Economic Daily News reports [Google translation] that shortages of Retina display panels for Apple's planned second-generation iPad mini have forced the company to push back its internal launch plans into early 2014. The company reportedly had been planning to launch the device during the fourth quarter of 2013, in time for the holiday shopping season.

The report also appears to suggest that Apple may offer both Retina and non-Retina versions of the second-generation iPad mini, although it is unclear just how price and feature differentiation between the models would work out.

Today's article is just the latest in a line of reports expressing uncertainty over Apple's iPad mini plans. Back in April, KGI Securities analyst Ming-Chi Kuo had indicated that technical challenges with Retina displays would likely result in the updated iPad mini beginning to ship in the September-November timeframe, perhaps somewhat later than observers had been expecting at that time.

NPD DisplaySearch analysts have also been flip-flopping on their claims, beginning with a May report initially claiming that Apple would be releasing a non-Retina iPad mini update later this year with a Retina update to follow in early 2014, but within hours reporting on DisplaySearch's claim was revised to indicate that a Retina display would be included in both of those updates. But last month DisplaySearch returned to its original prediction, claiming that a thinner non-Retina iPad mini would arrive late this year with a Retina model following in early 2014.

While at the annual Allen and Co media conference in Sun Valley, Idaho, Google Executive Chairman Eric Schmidt said the company's relationship with Apple is "improving" and that the two companies have been conducting "lots and lots" of meetings, reports Reuters.

Schmidt did not provide details about the nature of the meetings during comments to reporters at the annual Allen and Co media conference in Sun Valley, Idaho on Thursday. He noted that Google Chief Business Officer Nikesh Arora, who joined him at the press briefing, was leading many of the discussions.

Schmidt did say that the companies are in "constant business discussions on a long list of issues." Last December, the former Google CEO said that the two companies had an "on and off" relationship and that they would work through any issues in "the adult way."

Apple and Google's relationship has been strained in recent years, with constant patent disputes between Apple and Google's Android parters as well as the removal of both Google Maps and YouTube from iOS. The two companies also have taken their rivalry to apps as Google has Safari competitor Chrome in the App Store and has most recently updated its Google Search app with Siri competitor Google Now.

Schmidt had served as an Apple board member while also holding the position of Google CEO, but as the two companies became increasingly direct competitors following Google's launches of Android and Chrome OS, Schmidt stepped down from Apple's board in August 2009.

Microsoft is planning to drop the prices of its Surface RT tablets by $150, reports The Verge. The lower prices, which will go into effect on Sunday July 14, are likely the result of lackluster sales.

Bloomberg reported in March that Microsoft had sold just 1.5 million Surface RT and Surface Pro tablets since they debuted in October of 2012 and February of 2013, respectively, with 400,000 of those sales attributed to the Pro. HP experienced similarly poor sales with its TouchPad, which was heavily discounted and then discontinued.

The Surface pricing change comes just after Microsoft announced a restructuring of the company, aiming to enhance collaboration and unify its product lineup. Microsoft has heavily marketed Windows 8 tablets in recent weeks, pitting several different tablets against Apple's iPad in a series of ads that highlight the iPad’s inability to multitask and its lack of built-in productivity software.

With the discount, Microsoft's pricing will be as follows:

- Surface RT 32GB: $349.99
- Surface RT 64GB: $449.99
- Surface RT 32GB with Touch Cover: $449.99
- Surface RT 64GB with Touch Cover: $549.99

Staples has confirmed the pricing cut in a weekly promotional ad that says the new pricing will be available as of Sunday. Despite the pricing cuts, Microsoft has suggested that new versions of both the Surface Pro and the Surface RT are in the works, along with a number of new accessories.

Apple has updated the Supplier Responsibility page on its website addressing concerns over the illegal mining of tin in Indonesia.

The company is initiating a new task group with the Electronic Industry Citizenship Coalition (EICC) to determine if its suppliers are getting tin from illegal mining operations.

Bangka Island, Indonesia, is one of the world’s principal tin-producing regions. Recent concerns about the illegal mining of tin from this region prompted Apple to lead a fact-finding visit to learn more. Using the information we’ve gathered, Apple initiated an EICC working group focused on this issue, and we are helping to fund a new study on mining in the region so we can better understand the situation.

The Verge, which first noticed the change, noted that 249 of Apple's suppliers use tin in the production of its products. In an article last year, Bloomberg Businessweek looked at the collapse of a tin-mining pit on Bangka island that killed a number of miners in a landslide --one-third of the world's tin production comes from the area.

In recent years, Apple has stepped up its examinations of suppliers, issuing yearly Supplier Responsibility Reports and in 2013 fired one of its Chinese suppliers for child labor violations.

Sprint today announced new two new mobile plans, both of which come with a new Unlimited Guarantee, ensuring unlimited talk, text, and data on the Sprint Network for the life of the cellular line.

Sprint's guarantee applies to new and existing customers who choose to sign up for the "Unlimited, My Way" plan or the "My All-in" plan. The Unlimited, My Way plan offers customers unlimited usage for $80 per month for a single line, though additional lines (up to 10) can be added with a tiered fee that decreases based on how many lines are added. For example, a single phone with unlimited everything costs $80 under the new plan, but four phones will cost $260, or $65 each.

- Customers first select the number of lines; all lines come with unlimited talk to any wireline or mobile phone and text.

- Customers then choose their data for each line: $30/month for unlimited data on smartphones or $10/month for unlimited data on basic phones. Additional options include $20 for 1GB of data on smartphones or basic phone users can choose not to add data to their account.

- Customers also have the choice to activate mobile hotspot functionality on their smartphone for $10 per month for 1GB of data on the Sprint network.

Sprint's My All-in plan offers unlimited talk, text, and data plus 5GB of mobile hotspot usage for $110. With both plans, customers are guaranteed to have access to unlimited talk, text, and data for the lifetime of the line.

Previously, Sprint's individual unlimited talk, text, and data plan was priced at $109.99, so the change marks a significant discount. The pricing shift comes just a day after T-Mobile announced its new "Jump" phone upgrade program, which allows T-Mobile customers to upgrade their phones as often as twice per year.

According to Sprint, its customers save $240 per year over Verizon customers, and $120 per year over AT&T and T-Mobile customers. Sprint's new plans will be available beginning on July 12, and its new guarantee will go into effect on the same day.

Gamers with jailbroken iOS devices who have purchased or otherwise acquired the new game Deus Ex: The Fall are running into a problem when they attempt to play: they can't fire any guns, a key part of the game.

Reports Kotaku:

Encountered by Redditor KipEnyan and verified by several user reviews in the app store, jailbroken players starting up the first mobile installment of the Deus Ex series are treated to a few cutscenes and a movement tutorial before running into the message above. It comes up during the game's shooting tutorial, and while one would assume players could still stealth through the game, I'm not sure they can progress beyond that point without tranquilizing those guards.

Eidos and N-Fusion, the development firms behind Deus Ex: The Fall likely implemented the measure to deter piracy, as jailbreaking is a requirement to pirate software, though not all users who jailbreak choose to pirate software.

As a result, users who choose to jailbreak for other reasons but pay for their software get caught in the same net as the pirates. It's not the first time that developers have resorted to similar tactics to stop pirates, although it is unusual for such a high-profile developer to target not just pirates but all jailbroken users.

Earlier this year the publisher of Game Dev Tycoon encoded features into the game that would bankrupt players who didn't pay for their copies, while DirecTV prevents users with jailbroken devices from using its app at all.

Deus Ex: The Fall is available on iPhone and iPad for $6.99 from the App Store. [Direct Link]

Update: An unconfirmed source has indicated that the anti-jailbreak code was included in Deus Ex: The Fall at the request of publisher Square Enix and that an update is in the works to remove it.

This morning, Microsoft announced a restructuring of the company that will see it split into two divisions dedicated to services and devices. A number of executives have seen role shifts as part of the change, with Julie Larson-Green heading up the hardware division and Terry Myerson taking charge of Windows.

Microsoft aims to enhance collaboration within its walls with the change, focusing the company on "a single strategy" while working together and improving "capability in all disciplines."

We are rallying behind a single strategy as one company — not a collection of divisional strategies. Although we will deliver multiple devices and services to execute and monetize the strategy, the single core strategy will drive us to set shared goals for everything we do. We will see our product line holistically, not as a set of islands.

A similar strategy was employed by Apple last year, with a significant management restructuring that saw Jony Ive take over leadership of the Human Interface teams and Eddy Cue take over Maps and Siri, two products that Apple had been highly criticized for. With the new management system, Apple has previewed iOS 7 and OS X Mavericks and is said to have a number of products in the works, including the iPhone 5S, a low-cost iPhone, a 5th generation iPad, and an iWatch.

While Microsoft's Xbox 360 console has historically fared well in the market, its Surface Tablets have not been as well received. The company sold just over a million Surface RT tablets in the December quarter, while Apple sold over 22 million tablets. Lately, Microsoft has taken to pitting Windows 8 tablets against Apple's iPad in a series of advertisements.

Microsoft has seen more success with its Windows Phone, which now represents 3.2 percent of the smartphone OS market, coming in third after Android and iOS. There are a number of impressive Windows phones on the market as companies continue to embrace the platform.

Nokia today unveiled its newest flagship Windows phone, the Lumia 1020, which sports an impressive 41-megapixel camera, much like the PureView 808 first revealed last year. With the Lumia, Nokia aims to compete with other popular camera smartphones like Samsung's Galaxy S4 and the iPhone 5, both of which have come to largely replace traditional point-and-shoot cameras.

The Lumia 1020 comes equipped with optical image stabilization, a six component Zeiss lens and a xenon flash. Nokia plans to release an app that will allow users to manually adjust several aspects of the camera. With oversampling, 41-megapixels allows the Lumia 1020 to take crisp, noiseless photos.

Apple is said to be including several new camera enhancements in its own next generation iPhone, like a 12-megapixel sensor, improved flash capabilities with a dual LED flash, improved low light shooting, and a possible slow motion video mode.

Microsoft hopes that its new focus on unity may help both its Surface tablets and Windows phones like the Lumia 1020 draw some market share away from Apple and Android as the company works to build a single integrated experience much like Apple has done.

Bloomberg yesterday reported on a research note from analyst Craig Moffett pointing out that Verizon could potentially face a massive bill from Apple of up to $14 billion this year based on current iPhone sales rates and the carrier's commitment to purchase a minimum number of iPhones from Apple.

Under a multiyear deal signed with Apple in 2010, Verizon Wireless is obligated to buy $23.5 billion worth of iPhones in 2013 alone, according to Craig Moffett, a telecommunications analyst who left Sanford C. Bernstein & Co. earlier this year to start his own research firm. Since the purchase commitment is more than twice what Verizon Wireless sold in 2012, the company may have a shortfall of $12 billion to $14 billion, worth $4 to $5 per share, Moffett said in the report.

Apple routinely requires new iPhone carriers to commit to purchasing a certain number of iPhones over a period of years, a requirement that has led some carriers to balk at offering the device.

As Moffett points out, Apple's contract with Verizon requires the carrier to purchase more than twice as many iPhone this year as it did last year. During the first quarter of 2013, Verizon activated four million iPhones on its network, a figure representing roughly $2.5 billion in hardware value at Apple's average selling price of about $613 per unit.

While the first quarter may have been a somewhat slower one for the iPhone at Verizon following the iPhone 5 launch in September 2012, it only represented a 25% increase in units over the first quarter of 2012, indicating that the carrier is indeed well behind pace for meeting its purchase requirements for 2013.

Apple is expected to introduce an upgraded iPhone 5S later this year, with a lower-cost plastic iPhone also apparently in the works, but it seems unlikely that those launches will be able to generate the massive increase in sales volume needed at Verizon to meet the carrier's contract requirements.

Moffett notes that it is unlikely Apple will require Verizon to pay the full amount of any shortfall this year, particularly if it reaches the $12-14 billion amount estimated by Moffett, but that any renegotiations will likely see Apple extracting some concessions from Verizon as the iPhone maker seeks to hold other carriers to their commitments.

Update: Nomura analyst Stuart Jeffrey has released his own note examining the situation and concurs with Moffett that Apple and Verizon are in a difficult spot. Verizon disclosed at the end of its 2012 financial statements that it holds $23.5 billion in purchase commitments for 2013, with Moffett and Jeffrey both believing that the iPhone accounts for the vast majority of that amount.

Jeffrey notes that Verizon could still satisfy its obligation by making a massive advance purchase of iPhones for 2014 at the end of 2013, although such a purchase would obviously have an effect on any purchase requirements to be built into a renewal contract with Apple. Alternatively, Apple could simply allow Verizon to roll over its commitment into 2014 in order to prevent Verizon having to make a massive expenditure at the of the 2013, although such an allowance would undermine Apple's minimum purchase agreements with other carriers.

Late last month, some Adobe Photoshop users reported that the new 2013-edition MacBook Air was exhibiting severe flickering when using some brush tools in Photoshop.

It didn't happen with all units, but an Adobe representative said he believed it was a driver or GPU issue, and said Apple would need to fix the issue.

Today, a MacRumors tipster tells us the flickering issue has been fixed in the OS X 10.8.5 beta released to developers today. The bug made Photoshop nearly unusable for a number of MacBook Air users.

Some users have previously suggested that upgrading to the developer release of OS X Mavericks solved the problem, so the fix may be a matter of Apple pushing upgraded code sooner than it planned.

(Thanks, Todd!)