MacRumors

AllThingsD reports on IHS iSuppli's teardown analysis of the iPhone 4S, with an eye toward estimating the cost of components included in the device. Based on iSuppli's analysis, the 16 GB iPhone 4S carries a bill of materials cost of about $188, in line with that of the GSM iPhone 4 at launch.

In the case of the iPhone 4S, [IHS iSuppli analyst Andrew] Rassweiler estimates that the BOM cost ranges from $188 for the 16 gigabyte version of the iPhone 4S to $207 for the 32GB version and $245 for the 64GB version. Apple and its carrier partners sell the phones for $199, $299 and $399 respectively, typically with a two-year contract for wireless service that carriers use to subsidize the cost they pay Apple.

While we've already seen a couple of iPhone 4S teardowns from iFixit and Chipworks, IHS iSuppli highlights a few new items of note.

- A noise cancellation chip from Audience that had been included in the iPhone 4 is not found in the iPhone 4S, suggesting that the noise cancellation functions may have been incorporated directly into the main A5 system-on-a-chip. IHS iSuppli estimates that the A5 chip, which continues to be manufactured by Samsung, costs Apple about $15.

- While iFixit found Toshiba flash memory in its iPhone 4S unit, IHS iSuppli expressed some surprise at finding Hynix memory in its unit. Apple has, however, sourced flash memory for various devices from Hynix for many years, although the company's products have apparently not been seen in recent iPhone models. But with flash memory being a relative commodity in the hardware market, Apple typically sources the chips from a variety of vendors based on pricing and volume requirements.

- IHS iSuppli was unable to determine the manufacturer of the iPhone 4S camera module, as the part contained no identifying information printed on it. Chipworks had determined in its teardown that the camera sensor was made by Sony, but it is unclear if Sony is splitting sensor production loads with Apple's longtime partner OmniVision. Regardless, IHS iSuppli estimates the cost of the camera module at $17.60.

Component costs for Apple's entry-level iPhones have typically come in between $170 and $190, offering the company a hefty margin when the $199 purchase price and extensive carrier subsidies are accounted for. But it is important to note that bill of materials cost estimates account only for the cost of the individual hardware components used in the device. The estimates do not include other costs involved in product development, manufacturing, and sales, such as research and development, software, patent licenses, marketing, and distribution expenditures.

AT&T today announced that it has surpassed one million iPhone 4S activations since the device launched last Friday, the most successful iPhone launch in the carrier's history despite the device also being available on Verizon and Sprint for the first time at launch.

AT&T touts its network speed as one of the primary reasons customers are choosing the carrier over Verizon and Sprint.

AT&T was the first carrier in the world to launch iPhone in 2007 and is the only U.S. carrier to support iPhone 4S with 4G speeds.

“It’s no surprise that customers are clamoring for iPhone 4S and they want it to run on a network that lets them download twice as fast as competitors’,” said Ralph de la Vega, President and CEO, AT&T Mobility & Consumer Markets.

Apple announced earlier this week that iPhone 4S sales had topped four million units over the opening weekend across all carriers in its seven launch countries. The iPhone 4S is scheduled to come to 22 more countries at the end of next week.

As we noted earlier today, Apple updated its Steve Jobs memorial site with remembrances of the company co-founder and CEO ahead of today's private celebration of Jobs' life held on Apple's campus in Cupertino, California. While the private event is closed to the media and the public, those in attendance have been sharing some details on the event and their thoughts, with many expressing the feeling that they are finally feeling a sense of closure with the event.

Twitter seems to be the medium of choice for attendees to share their experiences, and we've collected a few of the comments we've spotted there.

@tylerstone:

Wonderful speech by Tim. Wonderful speech by Bill Campbell. Wonderful performance by Norah Jones. This really helps bring closure.

@xtian666:

An incredible and fitting celebration. Tears, laughter and some closure. #stevejobs

@larley:

That was a really moving ceremony. Norah Jones, Coldplay, Al Gore... Got choked up when they played Steve reading "Here's to the Crazy Ones"

While Apple launched iOS 5 and iCloud last week, the company pushed back the debut of its paid iTunes Match service in the United States until the "end of October". While iTunes Match had been in beta testing with iTunes 10.5 developer releases, the feature was removed from the public release and instead folded into an iTunes 10.5.1 beta that will presumably debut alongside the service.

Apple appears to be moving closer to a launch of iTunes Match in the United States, as the Music section of the Settings app in iOS 5 has now gained a toggle for turning iTunes Match on and off. That toggle had been present for developers testing the service, but had disappeared in recent days for many developers. The toggle now appears to have returned for developers and is visible to the general public as well.

Non-developers turning on iTunes Match on their devices will not yet be able to sign up for the $24.99/year service, as iOS 5 pops up an alert instructing users to sign up through iTunes.

With iTunes 10.5.1 not yet available to the general public, signups for iTunes Match are similarly not yet functional. Apple is, however, advertising the service as "coming soon" on the front page of the iTunes Store. Interestingly, iTunes Match is reportedly only launching in the United States by the end of the month with other countries set to come later, but Apple is optimistic enough about the service's international timeline that the "coming soon" flag is showing for users in a number of other countries. So far today we have received reports of the "coming soon" flag from users in Australia, Austria, Canada, Germany, Ireland, and the United Kingdom.

iTunes Match will allow users to have their music libraries matched to Apple's database of over 20 million tracks in the iTunes Store, making those songs available for use on any iCloud-enabled device associated with the user's accounts. Songs not available in the iTunes Store can be uploaded to Apple's servers and also made available across devices.

PCMag.com points to comments from Masayoshi Son, CEO of Japanese carrier Softbank, revealing that Steve Jobs continued to work on Apple's "next product" at least up until the day before he died earlier this month. According to Son, Tim Cook cut short a meeting with Son following the iPhone 4S media event on October 4th to take a phone call from Jobs.

Son said, "I visited Apple for the announcement of the iPhone 4S [at Apple headquarters in Cupertino, California]. When I was having a meeting with Tim Cook, he said, 'Oh Masa, sorry I have to quit our meeting.' I said, 'Where are you going?' He said, 'My boss is calling me.' That was the day of the announcement of the iPhone 4S. He said that Steve is calling me because he wants to talk about their next product. And the next day, he died."

Son, speaking in a public interview with U.S. Ambassador to Japan John Roos last weekend, went on to express admiration for Jobs, citing his dedication until the end as evidence for his incredible spirit and passion.

Son did not disclose what product it was that Jobs and Cook talked about, although he had previously mentioned that Jobs was intimately involved in plans for the next-generation iPhone that Apple is already working on. Jobs would obviously also have had input into other devices such as the iPad 3 that will make an appearance before the next iPhone, and he is said to have left Apple's pipeline with four years' worth of products that the company will use to plot its future.

Last month, we noted as part of a report on an update to the anti-malware tools in OS X that a new trojan horse threat known as Flashback.A had surfaced, with the malware masquerading as a Flash Player installer. While Apple has continued to update its XProtect.plist to detect Flashback.A, security firm F-Secure now reports (via ZDNet) that a revised version of the trojan which disables the auto-updating feature of Apple's anti-malware tools has appeared.

There's something new brewing in Mac malware development (again).

Recent analysis has revealed to us that Trojan-Downloader:OSX/Flashback.C disables the automatic updater component of XProtect, Apple's built-in OS X anti-malware application.

The report walks through how the modified trojan overwrites XProtectUpdater files, preventing infected systems from performing their daily check for updated malware definitions and thus keeping the door open for future attacks.

The Flashback.C trojan is capable of connecting to a remote host in order to download and execute further code, but it is unclear what the exploit is being used for at this time. Users are of course advised to download Flash Player and other software from trusted sources so as to avoid infecting their systems with trojans such as Flashback.C.

Update: MacRumors has heard and Sophos has confirmed that Apple had already updated its XProtect.plist entries to detect Flashback.C by the time news of it broke to the public. Consequently, users encountering the malware on Mac OS X Snow Leopard or OS X Lion should be automatically warned of the threat prior to mounting the package.

Apple yesterday quietly updated its iPhone 4S tech specs page to note that the device offers not only Assisted GPS but also GLONASS, the Russian version of GPS.

Just two weeks ago, Russia launched the last of 24 satellites required for global location coverage, setting the stage to restore GLONASS to its full operational status that had been lost amid economic turmoil in the country during the late 1990s.

Far from being a Russia-only service, some current global positioning hardware and software is capable of utilizing both GPS and GLONASS satellite information to provide more accurate geolocation information with faster acquisition times. We have reached out to Apple for comment on whether the iPhone 4S can in fact take advantage of satellites from both systems on a worldwide basis, as it is unclear from the tech specs whether this is the case, but have yet to receive a response.

Notably, only the tech specs page on the U.S. site has been updated to mention GLONASS capabilities, with the corresponding page in other iPhone 4S launch countries still listing only Assisted GPS as the device's satellite location service.

(Thanks, Jesse Perry!)

While Sprint made waves in becoming the third U.S. carrier to offer the iPhone with the launch of the iPhone 4S, it appears that Apple will be broadening distribution even further to include smaller carriers as well. Regional carrier C Spire Wireless, formerly known as Cellular South, today announced that it will begin offering the iPhone 4S in the coming weeks.

C Spire Wireless announced today that it will launch iPhone 4S, the most amazing iPhone yet, in the U.S. in the coming weeks.

For further information or to register interest, please visit www.cspire.com/iphone. For more information on iPhone 4S, please visit www.apple.com/iphone.

C Spire, which operates a CDMA cellular network like Verizon and Sprint, is the largest private wireless telecommunications provider in the United States with approximately 875,000 customers. While C Spire's subscriber base pales in comparison to those of AT&T, Verizon, and Sprint, the carrier's offering of the iPhone 4S signals a distinct shift by Apple to open up the iPhone to even more customers by reaching agreements with smaller carriers.

C Spire Wireless is based in Ridgeland, Mississippi and focuses its service on Mississippi, parts of Alabama and the Florida Panhandle, and the Memphis, Tennessee and Rome, Georgia areas.

Amid an ever-increasing intellectual property dispute involving Apple's mobile devices and Samsung's Android-based hardware products, rumors have claimed that Apple has been seeking to reduce its reliance on Samsung as the major component supplier for iOS devices. But even if Apple does switch to new suppliers for some components, such as TSMC for future A-series chips, Samsung will almost certainly continue to play a role in Apple's mobile hardware designs.

As reported by Yonhap News, Apple and Samsung are indeed exploring long-term component supply relationships, plans advanced in part by discussions earlier this week between Apple CEO Tim Cook and Samsung Chief Operating Officer Lee Jae-yong.

Lee Jae-yong, chief operating officer (COO) of Samsung Electronics said Wednesday he had discussed long-term parts cooperation arrangements with Apple Inc.'s chief Tim Cook.

The meeting took place Monday after Lee attended a memorial service for Steve Jobs, Apple's late co-founder, and as Samsung and Apple remain locked in fierce legal disputes to control the global smartphone and tablet computer markets.

Lee noted that Samsung and Apple are locked into supply agreements for 2012 and are exploring how to push technology forward through the 2013–2014 timeframe.

Upon arriving at a Seoul airport, Lee, the only son of Samsung Electronics Chairman Lee Kun-hee and heir apparent to South Korea's largest family-owned business group, told reporters his company will continue to sell parts to Apple until 2012. Apple is one of Samsung's most important buyers and single largest semiconductor customer.

"For the 2013-2014 period, we discussed how best to supply even better parts," he said, adding that during the more than two-hour meeting, the businessmen touched on past challenges and how to promote good relations in the future.

Apple has been keen to lock in long-term supply commitments with component suppliers, sometimes prepaying billions of dollars in advance to secure massive supplies looking over several years. Apple's strategy gives it leverage in supply negotiations, helps fend off competitors seeking to source components for their own devices, and results in partnerships to push technology forward.

Lee declined to specifically discuss whether any progress was made Monday on patching up the relationship between the two companies, which are both in the tenuous position of relying on the other in component contracts even as they wage fierce battles in courts around the world. Samsung noted last month that it had been relatively "passive" in the legal dispute out of respect for the company's supply relationship with Apple, but that it would be stepping up its attacks on Apple for "free riding" on Samsung's intellectual property.

Apple has updated their Steve Jobs page on their site to reflect many memories, thoughts and feelings that people have submitted about Steve Jobs since his passing.

Over a million people from all over the world have shared their memories, thoughts, and feelings about Steve. One thing they all have in common — from personal friends to colleagues to owners of Apple products — is how they’ve been touched by his passion and creativity. You can view some of these messages below.

And share your own at rememberingsteve@apple.com

Apple reports that over a million people have already shared their thoughts. The company is still soliciting thoughts by email.

Steve Jobs has seen an outpouring of support and tributes since his passing on October 5th. Apple Stores around the world have turned into makeshift memorials as fans have left flowers and notes in his memory.

Jobs was 56 years old, and had been struggling with complications related to pancreatic cancer over the past several years. Apple will be holding a privatecompany wide celebration of Steve Jobs' life on Wednesday, October 19th. The event will take place on Apple's campus in Cupertino. Apple Retail stores will be closed for several hours during the event so that employees may view a live webcast of the service.

It's a frequent parlor game amongst Apple analysts and watchers to guess and suggest and hypothesize what Apple should do with its huge and growing cash reserves. As of September 24, 2011, Apple is sitting on $81.57 billion in cash. Apple added $5.4 billion to its cash reserves in the last 3 months, and that would have been significantly higher if, as Horace Dediu points out, not for the more than 6,000 Nortel patents Apple purchased the rights to.

To be more precise, Apple CFO Peter Oppenheimer oversees $9.815 billion in cash and cash equivalents, $16.137 billion in short-term marketable securities, and $55.618 billion in long-term marketable securities. In the earnings call with analysts this afternoon, Apple CEO Tim Cook said the cash wasn't "burning a hole in our pocket" and that the company invested very conservatively and didn't want to do "silly things" with the money.

Cook noted that in recent months Apple had acquired several companies, acquired intellectual property, invested in the supply chain, and invested in new stores. In his first comments as CEO about the cash pile Cook said he wasn't "religious about holding or not holding cash," but Apple would continually ask ourselves what is in Apple's best interest and act accordingly.

"It's a topic for the board on an ongoing basis and we will continue to discuss it," Cook said in response to an analyst question. Apple CFO Peter Oppenheimer jumped in after Cook was finished answering the question, to point out that more than two-thirds of Apple's $81 billion cash pile was sitting offshore.

The question of offshore cash is an important one, as explained by Reuters:

The U.S. government taxes U.S. businesses on income earned worldwide, but allows them to defer taxes on the money until it is brought back to the United States. As a result, American corporations like to keep the money abroad, particularly as they increase investment overseas.

A number of companies, led by Apple, Google and Cisco have been pushing for a tax holiday on overseas cash holdings to allow the companies to repatriate the money to the United States tax-free.

One of the high points of Apple's earnings for the fourth fiscal quarter of 2011 was Mac sales, which came in well above expectations at a record 4.89 million units. On the earnings conference call, Apple CEO Tim Cook noted that the strong sales were "almost unbelievable" considering continued growth in the iPad market.

Cook noted that some customers are undoubtedly electing to purchase iPads instead of Macs, eating somewhat into potential Mac sales. But as Apple has noted several times since the introduction of the iPad, Apple still holds only a small part of the PC market and that cannibalization of Windows PCs by the iPad opens up a tremendous opportunity for the company.

Apple's previous record for quarterly Mac sales came in the first fiscal quarter of this year with 4.13 million units shipped, making this quarter's performance 18% higher than that record. Given the Apple's Mac sales typically increase sequentially for the holiday quarter each year, Apple should also be well-positioned for another strong performance on the Mac side to close out the calendar year.

While Apple's iPhone sales for the fourth fiscal quarter fell short of expectations at 17.07 million units, Apple CEO Tim Cook noted during the company's conference call that it expects to hit all-time record iPhone sales in the current quarter on the strength of the iPhone 4S.

Cook noted that iPhone sales declined somewhat sequentially as rumors regarding a new model circulated. iPhone sales dropped by 2.4 million sequentially on a sell-through basis, which was actually less than the company had anticipated. Unsurprisingly, the reduction was most significant in the second half of the quarter as speculation surrounding the iPhone 4S "hit extreme highs". That pent-up demand led to a strong launch for the iPhone 4S, with Apple selling over four million units in the opening weekend.

iPhone rumors had been at a fever pitch for many months as Apple missed its usual June introduction of new hardware. Compounding the effect were persistent rumors of a dramatically redesigned "iPhone 5" offering a larger but thinner design than the current iPhone. Whether those iPhone 5 design rumors were incorrect or based on a design still in the works for a future model remains unknown, but the iPhone 5 was ultimately not released during this product cycle as Apple elected to remain with the iPhone 4 design as it launched the iPhone 4S.

Cook also expressed confidence in Apple's rollout plans for the iPhone 4S, with the device already available in seven countries and an additional 22 countries coming online by the end of this month. Record iPhone sales for the current quarter would come in above the 20.34 million units set in the third fiscal quarter (second calendar quarter) of this year. Apple has already issued strong guidance of $37 billion in total revenue for the current quarter, and with the iPhone making up the largest chunk of Apple's revenue, the company is clearly expecting strong sales at least through the end of the year.

Apple today announced financial results for the third calendar quarter and fourth fiscal quarter of 2011 -- plus the full fiscal year. For the quarter, Apple posted revenue of $28.27 billion and net quarterly profit of $6.62 billion, or $7.05 per diluted share, compared to revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share, in the year-ago quarter. Gross margin was 40.3 percent, compared to 36.9 percent in the year-ago quarter, and international sales accounted for 63 percent of the quarter's revenue. Apple now has $81.57 billion in cash and marketable securities.

For the 2011 fiscal year, Apple reported revenue of $108.25 billion and net profit of $25.92 billion, or $27.68 per diluted share, compared to revenue of $65.23 billion and a net profit of $14.01 billion, or $15.15 per diluted share, in fiscal 2010. Gross margin for the year was 40.5 percent, compared to 39.4 percent a year ago. Apple's yearly profit and revenue were company records with Apple reporting more than $100 billion in yearly revenue for the first time ever.

Apple shipped 4.89 million Macintosh computers during the quarter, a unit increase of 26 percent over the year-ago quarter. Quarterly iPhone unit sales reached 17.07 million, up 21 percent from the year-ago quarter, and the company also sold 6.62 million iPods during the quarter, representing 27 percent unit decline over the year-ago quarter. Apple also sold 11.12 million iPads during the quarter, up 166 percent over the year-ago quarter.

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”

Apple's guidance for the first quarter of fiscal 2012 (the holiday quarter) includes expected revenue of $37 billion and earnings per diluted share of $9.30.

Apple will provide live streaming of its Q4 2011 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Mac sales, at 4.89 million units in the back-to-school quarter were well higher than even the highest analyst expectations, while iPads met expectations. iPods were slightly worse than expected. However, the biggest miss was on the iPhone with 17.07 million units moved, well below the consensus analyst estimate of 19.75 million. Only two analysts underestimated Apple's iPhone sales, with Charlie Wolf at Needham and Chris Whitmore at Deutsche Bank both expecting 17 million iPhone units on the quarter.

Apple missed estimates on earnings for the first time since 2004.

Conference Call Highlights:

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Philip Elmer-Dewitt has put together his list of analyst expectations ahead of Apple's quarterly earnings report this afternoon. The list includes estimates from 16 "independent" analysts and 42 "affiliated" analysts who work for large investment houses or research organizations.

As usual, the independent analysts are much more bullish than the affiliated analysts. The independent consensus expects earnings per share (EPS) of $9.07 on revenue of $33.47 billion. The institutional consensus is EPS of $7.31 on $29.45 billion in revenue.

Click through to Elmer-DeWitt's post at Fortune to see the full-size chart.

Apple will announce its earnings for the fourth fiscal quarter of 2011 (third calendar quarter) and host a conference call regarding the release this afternoon at 5:00 PM Eastern / 2:00 PM Pacific. The earnings release itself typically comes in around 4:30 PM Eastern.

Last quarter the company announced record-breaking results in a number of areas, including $7.31 billion in profit on revenue of $28.57 billion. For the fourth fiscal quarter, Apple has issued guidance of $25 billion in revenue with profits of $5.50 per share.