Apple’s iPhone sales keep falling
Apple just announced financial results for its Q4 2016, and it marks the third straight quarter of declining revenues. The company pulled in revenues of $46.9 billion, down about 9 percent from one year ago. As for its key products, each was down as well. Apple sold 45.5 million iPhones, 9.3 million iPads and 4.9 million Macs in the quarter — that’s a year-over-year decline of 5.2 percent for iPhones, 6 percent for iPads and a whopping 14 percent for the Mac. Not a huge surprise, given that Apple has only updated one single computer out of its lineup for all of 2016. (That should change on Thursday, though.)
Apple still isn’t saying how well the Apple Watch is selling, but it’s clear that the popularity of the original lineup had run its course — Apple’s “other products” category (which includes the Watch, Beats hardware, the iPod lineup and other relatively small products) has flattened out in terms of revenue. The company pulled in $2.2 billion in revenue for other products this quarter, down 21 percent from a year ago.
However, with a new Watch out in the wild and the holiday quarter coming, this number should increase significantly when Apple reports earnings three months from now — in the holiday quarter last year, the other services category pulled in $4.4 billion in revenue.
Indeed, this quarter sees Apple in a bit of a holding pattern — the new iPhone and Apple Watch were barely on sale during this period, and the Mac lineup has obviously not been updated yet. But the dual impact of a whole new lineup of products in just about all of Apple’s product categories and the holidays should mean a strong quarter for the company. The question is whether it’ll be enough for Apple to grow its revenue after three consecutive down quarters.
Those three quarters of decline also means this is the first fiscal year in which Apple will not grow its annual revenue — the first time that’s been the case since 2001. For those who don’t remember 2001, that’s when Apple first launched the iPod.
However, Apple’s services business (which encompasses revenue from things like the iTunes Store and Apple Music) remains a bright spot. CEO Tim Cook has spoken positively of it for several quarters now, and once again services revenue grew — $6.3 billion in services revenue this quarter marked a 23.5 percent increase over a year ago. Now doubt the growth of Apple Music contributed to that. Indeed, services remains Apple’s second biggest product category behind the iPhone for yet another quarter.
Apple is holding its traditional conference call with industry analysts at 5PM ET, and we’ll be listening in to update this post with anything CEO Tim Cook chooses to address.
Source: Apple
What to expect from Apple’s ‘Hello Again’ event
Apple is sneaking in one more big product unveiling before 2016 comes to a close, and expectations for new Macs are running high. And how couldn’t they be? Aside from last year’s iMacs and the 12-inch MacBook, Cupertino’s computer lineup has gone largely untouched since 2015 — and there are numerous systems that have remained the same for even longer. But which Macs are going to get an upgrade on Oct. 27th? And is there a chance that other devices will get their moment in the sun? We’ve rounded up some of the more credible rumors to give you a sense of what’s likely in store.
Redesigned MacBook Pro
If there’s anything that could be considered a lock for the “Hello Again” event, it’s a refreshed MacBook Pro lineup. Apple hasn’t made any significant changes there since mid-2015, and some elements have stuck around for ages. The 15-inch models are still using the fourth-generation Core i7 chips they got back in 2014, for example, while the basic designs of both the 13- and 15-inch systems have remained largely the same since they were introduced in 2012. Even if you discount the rumors, it’s safe to say the MacBook Pro is long overdue for a makeover.
Thankfully, it sounds like you’re going to get just that. Numerous scoops (supported by a case leak from Cult of Mac) suggest that the new Pros are coming this fall, and will center around an OLED touch strip above the keyboard that adapts to the context of whatever you’re doing. You’d get media playback controls if music is playing, or app-specific shortcuts for tasks like video editing or web browsing. Also, Apple might introduce a fingerprint-reading power button that streamlines your sign-ins and online purchases through Apple Pay.
Those same leaks also hint that the MacBook Pros’ ports will be a mixed bag. Instead of the usual variety of connections, you’d get USB-C ports (with Thunderbolt 3 for some high-speed peripherals), a headphone jack … and that’s about it. You might need adapters for video output, SD card readers and other hookups that might have had native connections before. It could be an inconvenience, at least in the short term when USB-C peripherals are rare, but it would give you a more flexible computer in the long run. You wouldn’t have to buy a 15-inch system (or a hub) just to get more than two USB ports or worry about where you plug in an external display.
What’s powering these laptops is a tougher call. Intel did just introduce its first seventh-generation Core (aka Kaby Lake) processors, but the current versions are lower-power chips designed for ultraportables, not mobile workhorses like the MacBook Pro. Unless Apple can score higher-power parts, you may have to “settle” for sixth-gen Core CPUs. You could get improved battery life, though, and there are hints you’ll be able to configure it with up to a 2TB solid-state drive.
The graphics on the 15-inch model would definitely get a boost too. Rumors have it sporting AMD Polaris-based video that would help with creative work and the occasional round of gaming. Just don’t expect a 4K display, because the tidbits we’ve seen suggest that you’ll get the same screen resolutions (2,560 x 1,440 and 2,880 x 1,800) that you have now.
Whatever mystery is left comes down to the pricing. Will these systems carry any kind of premium over their ancestors? And will the base models have enough horsepower and storage to keep you satisfied? Barring last-minute revelations, that may have to wait until event day.
A 13-inch MacBook … or is it a new MacBook Air?
It’s when you consider other possible Mac introductions that things get tricky. There have been conflicting reports as to how Apple will tweak its lower-cost laptops, and both sides can make a persuasive case.
One rumor from Bloomberg’s Mark Gurman (who has a solid track record for Apple scoops) has Apple releasing an upgraded 13-inch MacBook Air with USB-C ports. It’s not certain what else would be improved. A higher-quality display, perhaps? The current batch of seventh-generation Core processors would work in a new Air, at least, so performance could easily take a step forward. And like it or not, Apple may have to keep the Air current simply because it’s the only MacBook you can buy at a sub-$1,000 price point. Don’t expect the 11-inch Air to survive, as it’s supposedly being cut (it feels a bit redundant now, thanks to the 12-inch MacBook).
However, a conflicting prediction from KGI analyst Ming-Chi Kuo (who also has a good record) has Apple passing over the Air in favor of something else: a 13-inch version of the MacBook first launched in 2015. Little is known about what that would entail besides a likely Retina display, but a larger frame could allow for a beefier processor (not just one of Intel’s lowest-power Core chips), as well as additional ports. More than one USB-C socket, please! The question is, where this would fit in the lineup? Unless the 12-inch version becomes more affordable, a 13-inch MacBook could be priced well into MacBook Pro territory.
We wouldn’t rule either portable out at this stage, but history would suggest that the second option is more likely. Once Apple introduces a new Mac design at the heart of its lineup, it rarely revisits the old hardware. This is the company that’s still selling a four-year-old MacBook Pro to optical drive diehards, remember. Combine that with the Air’s aging circa-2010 chassis and it’s easy to see why Apple would want to move on.
Wild cards: New iPads, more Macs
What else could appear on Oct. 27th? You might not want to get your hopes up for new desktops. When seventh-generation desktop Core processors aren’t due to appear until 2017, an iMac revamp seems unlikely. Ditto the Mac Pro, which would depend on new Xeon E5 models. A fabled 5K stand-alone display may have to wait until the new year as well, according to rumors. About the only Mac desktop that could qualify for a near-term upgrade is the Mac mini, and any update (we’re not expecting one) could easily be limited to a low-key press release.
If anything beyond MacBooks appears onstage, it’s more likely to be iPads. The 12.9-inch iPad Pro is approaching the first anniversary of its ship date, and it’s looking long in the tooth compared to the 9.7-inch model. We’re skeptical of purported A10X benchmarks, but Macotakara (which is sometimes accurate, but not always) hears that a 12.9-inch refresh is in the cards with the 12-megapixel rear camera and TrueTone display of its smaller sibling. The site even talks about a 7.9-inch iPad Pro with many of the features from larger models. Let’s also not forget that the iPad Air 2 is marking its second birthday. It’s old enough that Apple may see fit to either replace it or give it the ax, although there haven’t been any rumors so far.
Image credits: Martin Hajek; AP Photo/Eric Risberg; AOL
The Morning After: Tuesday October 25th 2016
While you were sleeping, we found out where you can still buy a Galaxy Note 7 (don’t), Apple added Portrait mode to its flagship iPhone 7 Plus, and we’re thinking about what Microsoft has planned for later this week.
iOS 10.1 is herePortrait mode brings blurry backgrounds to iPhone 7 Plus photos
While it’s a mostly minor update, the iPhone 7 Plus will pick up another way to utilize its duo of rear-facing cameras. Yes, the once-teased portrait mode is now here to blur your backgrounds and make those portraits of loved ones really pop.
Disable in-app purchasesDoctors say your toddler can use your tablet — as long as you’re around to supervise
The American Academy of Pediatrics has softened its guidelines when it comes to screenwatchin’ for the under-twos, stating that they can watch “high-quality programming” (Sesame Workshop, for example) so long as you’re there to help understanding and monitor use. If your wee ones are younger than that, you should limit them to video chat for now. The AAP reiterates that, regardless of your children’s age, it’s important to both set “consistent limits” and ensure that device time doesn’t affect physical activity, play and sleep.
Tune in, turn on … TrumpSocial media isn’t just for apologies and insults
There’s no “Trump TV” yet, but the campaign has launched a daily show for its Facebook followers. So far, it’s not outdrawing Chewbacca Mom, but you all know those viewing counts are rigged anyway.
Scratching the surfaceHere’s what to expect from Microsoft’s ‘Imagine What You’ll Do’ event
New Surface? Sure, but in what shape — maybe an all-in-one? Perhaps, perhaps. While we probably won’t see a Surface Pro 5, we do expect Microsoft to explain what’ll happen in the next Windows 10 update, likely to launch in early 2017.
GastlyPokémon Go’s first global event is Halloween-themed
To celebrate All Hallows’ Eve, Pokémon Go creators Niantic Labs is increasing the encounter rate for its spookier Pocket Monsters. Gastly, Gengar, Golbat (ugh!) and more will appear far more frequently, while each monster caught will net you double the number of candies. In true trick-or-treat style, you’ll also get more candies from your Buddy Pokémon, and even from Professor Willow when you send him your Pokémon.
Just because you can doesn’t mean you shouldIf you want a Galaxy Note 7, they’re still on sale in Hong Kong
Because people like to risk carrying around something in their pocket that might explode in a burst of smoke. Read how Engadget Chinese editor-in-chief Richard Lai fared while trying to buy one — and why they’re still on sale in the first place.
But wait, there’s more…
- Hackers can gain full access in five seconds with this Linux exploit
- Stare at this beautifully detailed map of the Milky Way
- New White House initiative hopes to ensure microsatellites thrive
- A new stylus-toting Samsung Galaxy device that won’t burst into smoke
Smartwatch shipments dropped ahead of new models
The smartwatch market isn’t quite as red-hot as it looked in recent months. IDC estimates that smartwatch shipments fell by just shy of 52 percent year-over-year in the third quarter of 2016, with the biggest names often being the hardest hit. Apple was still the top dog, but its shipments fell almost 72 percent to 1.1 million. Samsung’s shipments were virtually flat, while Lenovo and Pebble saw their unit numbers drop sharply. Interestingly, the only company in the top five to see a big surge was Garmin — the relative newcomer’s shipments more than tripled to 600,000. Should the industry be worried? Not necessarily.
The problem, appropriately enough, is timing. The periods aren’t strictly comparable — many manufacturers had just launched new watches last summer, but had nothing new to show (or had barely started deliveries) a year later. The original Apple Watch was widely available in Q3 of 2015, for instance, but Series 1 and Series 2 models didn’t arrive until the last two weeks of this past quarter. Samsung has yet to ship the Gear S3, there was no third-generation Moto 360 and Pebble only started shipping its newest watches in September.
This doesn’t mean that you can expect a year-over-year recovery in the fourth quarter. It’s possible that the enthusiasm for smartwatches has cooled off, and that we’re seeing what the market is really like now that early adopters have devices on their wrists. There should at least be a season-to-season improvement, however, thanks to both new hardware and the usual holiday rush. And the smartwatch field is still young. Even veterans like Pebble and Samsung are still trying to figure out what works, and the technology is still new enough that features like GPS and LTE data are still big deals whenever they show up.
Via: TechCrunch
Source: IDC
Apple rolls out updates for the Watch and Mac
Apple launched updates on Monday for the Watch and Mac, mostly focused on squashing some bugs in each of the systems. The macOS Sierra 10.12.1 update adds an automatic smart album just for iPhone 7 Plus Depth Effect images, improves the security of Safari, fixes a glitch that caused text to paste incorrectly via Universal Clipboard, and improves the reliability of Auto Unlock with the Apple Watch. The macOS update also improves the compatibility of Microsoft Office with iCloud Desktop and Documents, and fixes an issue with Microsoft Exchange accounts preventing Mail from updating.
On the Watch side of things, update 3.1 improves battery life but doesn’t add any new features, according to release notes published on MacRumors. WatchOS 3.0 was a major overhaul and the latest update finesses some of its functions, squashing a bug that stopped the Watch Series 2 from charging fully, fixing another glitch that prevented Force Touch from working with some apps, and addressing one issue that made Activity rings disappear from the watch face. Also, the timer shouldn’t notify users twice once it’s finished anymore, Messages effects will work with Reduce Motion enabled and Watch wearers have the option to replay bubble and full-screen effects in Messages.
The Watch update is available across Series 2, Series 1 and first-generation models.
Source: MacRumors
Apple releases iOS 10.1, adds Portrait mode to the iPhone 7 Plus
The Portrait mode for Apple’s iPhone 7 Plus has been in the works for months, and now it’s ready for the masses… sort of. 7 Plus users running beta software have been able to shoot photos full of artificial bokeh for over a month now, but Apple just pushed out its iOS 10.1 update and Portrait mode came along for the ride. Now, here’s the thing: even though you don’t need to be enrolled in the iOS beta program to use the feature anymore, the feature itself still isn’t completely done. Once the update is installed, the camera app asks if you’d like to “try the beta” when you swipe into the new Portrait position.
Our professional recommendation? Dive right in. Portrait mode might not be completely complete, but it’s still capable of producing seriously nice headshots. In case you missed it the first time around, the feature uses the iPhone 7 Plus’s two cameras in tandem — the primary 12-megapixel sensor captures the image as normal, but the second, wide-angle sensor is used to determine how far away the subject is. All of that data gets mashed up into a nine -layer depth map, providing the context needed to artfully blur out backgrounds while keeping faces and subjects closer to the phone remain crisp and intact. Apple’s goal was to build a dead-simple photography experience that yields pictures that look like they were shot on expensive SLR cameras, and for the most part, Apple’s work is very impressive.
This photo represents well the sort of quality you can expect out of Portrait mode: the focus stays locked on the face and hands, and the windows in the background are blurred pretty dramatically. Thanks to that nine-layer depth map, you can see areas where blurring is very subtle, like the top of the subject’s head and the bottom of her scarf.
You don’t need to take photos of people to get some mileage out of Portrait mode, either. Have cats prancing around? Or a sweet new mug you need to share? In my experience, as long as you’re within proper range (the app tells you when you are) and there’s enough contrast between the foreground and background, you’ll get that pleasant background blurring.
It’s when you’re in well-lit environments with lots of similar colors that Portrait mode seems to have trouble — that’s often when you’ll see edges blurred when they shouldn’t be. Just check out this photo of a cactus precariously perched on a railing. The camera didn’t have trouble differentiating between the cool blue of the pot and the trees in the background, but it obviously had trouble telling where the cactus ended and the trees began.
These disappointments are rare, though, and will probably get ironed out as people continue to put Portrait mode through its paces. Most of the big problems have been solved — now Apple just has to focus on the fine-tuning (which is obviously easier said than done). At this point, Portrait mode is still far from perfect, but there’s a lot to like about just how simple it is to use. It’s fast, it’s impressive and it’s only going to get better with time. Interested in taking it for a spin? Jump into your iPhone 7 Plus’s settings and mash that software update button — it’ll show up sooner or later.
The Morning After: Monday October 24th 2016
Happy Monday. Over the weekend, we sampled smart-refrigerated wine, looked back on 15 years of iPod, and asked Amazon’s AI to fact-check politicians for us. Coming up this week: Apple’s MacBook event, some news from Microsoft, and a lot of companies reporting on their quarterly earnings — if you’re all about gross revenue and such.
‘schpensivePlum is the $1,500 smart wine fridge you can’t afford
Engadget editors run the gamut, from whisky connoisseurs to those looking for “whatever’s got the most booze in it.” We like the idea of Plum: a smart fridge aimed at making your wine taste the best it possibly can. It’ll even dispense it for you. (No, it doesn’t take wine boxes.)
Digital music was changed forever.The iPod: 15 years on
It’s been 15 years since the launch of the first iPod, the device that would lead to the iPhone, the iPad, iTunes music, and myriad other ways of taking our money. A lot has changed since then, but we all have a lot to thank Apple’s debut MP3 player for.
Compromises.Review: Razer’s latest gaming rig tries to deliver desktop gaming power and an ultraportable notebook
The Razer Blade Stealth gaming laptop has a powerful pitch: a portable, powerful notebook that could dip into the power of desktop-class graphics cards, changing it into a gaming powerhouse. Sean Buckley discovers that there are some caveats — most notably the poor battery life when the laptop is away from your desk.
Alexa is on it.Amazon’s talking speaker can now fact-check your leaders
The new Amazon Echo skill lets you fact-check any politician scrutinized by PolitiFact, FactCheck.org or the Washington Post — if that’s your idea of a fun Monday morning task.
But wait, there’s more…
- Samsung’s rushed Note 7 recall has had an effect on the Galaxy S8 — already
- Finally, ‘The Last Guardian’ is ready
- Elon Musk’s moon colony would rely on a lot of mining robots
- Nintendo’s new console won’t play your old carts and discs
Apple Sponsoring Annual Fashion Met Gala for Second Year Running
The Metropolitan Museum of Art has shared details on its annual 2017 Gala and Costume Institute exhibition, where Apple will be a sponsor for the second year running.
The 2017 event, which will take place on May 1, will have a focus on fashion designer Comme des Garçons’s Rei Kawakubo, who will also co-chair the event, alongside Katy Perry, Pharrell Williams, and Vogue editor Anna Wintour. Proceeds from the event go to the Metropolitan Museum of Art Costume Institute.
Image via Vogue
Last year’s fashion/tech themed event was co-chaired by Apple design chief Jony Ive, alongside Taylor Swift, Idris Elba, and others. The intersection of technology and fashion was a fitting choice for Apple’s co-sponsoring the 2016 event, as the company came out with its first fashion item, the Apple Watch, in 2015.
Apple’s continuing support for the gig outlines its deepening ties with the fashion industry, with the company’s timepieces turning up on the wrists of celebrities and in glitzy magazines, Apple stores taking a page out of Burberry’s fashion playbook thanks to Apple retail head Angela Ahrendts, and even audio accessories like Beats headphones becoming fashion statements.
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iPod marks its 15th birthday in a changed world
If you’re a gadget fan of a certain age (cough), you’re about to feel ancient: Apple’s iPod just turned 15 years old. Steve Jobs unveiled the first version of the media player at an event on Apple’s campus on October 23rd, 2001. To say that it had a wild ride after that would be an understatement. Many credit the iPod as the device that took Apple from niche PC maker to one of the largest companies on the planet, only to fade away as smartphones took over. But how did it get to where it is now? And is there any room left for the iPod 15 years later? Let’s take a quick look back at how the iPod has evolved through the years.
We like to think of the iPod’s 2001 introduction as a watershed moment these days, but at the time it left many scratching their heads. This was a risky side project for a company that had been on the brink just a few years earlier, and the number of caveats seemed to be a mile long. Mac-only, a $399 price and ‘just’ 5GB of storage? Many didn’t expect it to sell well… and for the first couple of years, it didn’t. While the iPod found an audience among the faithful, those steep initial requirements ruled out both Windows users (even the 2002 model’s Windows support was a kludge) and many casual Mac listeners. Competitors like Creative and Rio had little to fear at first. Still, it was a glimpse at a future where you could quickly and easily sync your whole music collection, rather than painstakingly copying songs over an abysmally slow connection.
But then something happened. In 2003, Apple not only released an iPod built with Windows users in mind, but launched both iTunes for Windows and the iTunes Music Store. It was as if a puzzle had been solved. Suddenly, most computer users could buy whatever songs they liked, sync them with an iPod, and start listening within a few minutes — no CD ripping or dodgy peer-to-peer sites required. It’s easy to complain about how unwieldy iTunes can be today, but it was a minor revelation at a time when most MP3 players had truly clunky sync processes and few (if any) ways to integrate with digital music services.
And for the next few years, it seemed as if Apple could do no wrong. iPod sales exploded, helped in no small part by falling prices and more accessible models. The iPod mini, shuffle and nano transformed the device from a near-luxury item into something virtually anyone could own. Apple grabbed such a dominant foothold in the market that no competitors posed more than a temporary threat. Even Microsoft’s Zune, with its iPod-like software integration and gobs of marketing money, couldn’t loosen Apple’s grip. The iPod’s white earbuds (and the matching silhouette ads) became iconic. With the help of iTunes, it ushered in an era where digital music was an everyday fact of life instead of a novelty. Podcasts owe both their success and very name to Apple’s pocket player — you wouldn’t be listening to Serial otherwise.
All technology has a finite lifespan, though, and Apple took the relatively radical step of hastening the iPod’s demise itself. When Jobs unveiled the iPhone in January 2007, he wasn’t shy about treating it as a do-it-all device that could help you avoid buying an iPod. Why get something separate when all your music can live on the phone you’re already carrying? The media player soldiered on for a while, in part thanks to the iPod touch (which satisfied the urge if you couldn’t buy an iPhone), but its days were clearly numbered. It’s telling that Apple unveiled the first iPod classic mere months after the iPhone arrived, indicating that the days of music-first hardware were coming to an end.
You may well know what happened next. Modern smartphones, including the iPhone, rendered dedicated players almost obsolete within just a few years. Apple increasingly shifted the iPod toward niche uses like fitness (the current iPod nano and shuffle are practically designed for runners) and away from the mainstream. Sales fell from nearly 55 million iPods per year in 2008 to a number so low that Apple no longer breaks them out in its fiscal results. To compound matters, streaming music has practically eliminated the need for a tiny jukebox. You don’t need capacious storage when you can listen to seemingly everything on services like Spotify or Apple Music. The death of the iPod classic in 2014 was less of a tragedy and more a sign of progress, when you think about it.
As such, the iPod at 15 is really in its twilight years. There’s just not much room for it. Unless you need a mountain of offline music without paying a premium, you’re usually better off using your phone. It can access a wide array of services, and you don’t have to sync it with a computer. Even the iPod nano and shuffle are facing pressure from smartwatches, which can hold or stream enough music to last your whole run.
This isn’t to say that the iPod is a footnote in history, however. In hindsight, it was a stepping stone — a way of leaving CD players and record stores behind in favor of a world where any song you want is just a heartbeat away, wherever you are. You can also see it as ushering in the mobile revolution, since the iPod’s success helped drum up interest in the iPhone and other smartphones that weren’t just about checking email or making calls. As sad as it is to see the iPod treated like an afterthought today, there’s no question that its legacy will last well beyond the day the last units leave store shelves.
Image credits: Reuters/Mike Blake; AP Photo/Eric Risberg
Tesla’s self-driving future, and more in the week that was
Tesla is making several big announcements this month, and Elon Musk just delivered the first: From now on, all new Tesla cars will be self-driving. The electric automaker also teamed up with Panasonic to build solar panels for its Powerwall home battery, which it’s set to update next week. Hyperloop One is forging ahead on its futuristic transportation system by raising $50 million and hiring Uber’s former CFO as an advisor. It looks like Apple has scrapped plans to build a self-driving car, and BMW showcased plans for a next-gen smart motorcycle that will never crash or tip over.
In energy news, scientists accidentally discovered a cheap, simple way to transform CO2 into ethanol fuel. A new study shows that wind power could supply 20 percent of the world’s electricity by 2030, and Germany is preparing to build the first wind/hydro turbines, which can produce energy even without a breeze. A new type of solar panel is able to pull clean drinking water from thin air, and Dyaqua has developed “invisible” photovoltaics that look just like stone, concrete and wood.
Target is taking fresh, local produce to the next level — by actually growing fruits and veggies in its stores. The chain is planning to install vertical indoor gardens starting next spring. In other technology and design news, Biodome Systems launched a line of geodesic dome homes that can withstand major earthquakes, and we spotted an algae-powered oxygen bar that sucks CO2 out of the air. Yves Behar launched the world’s first smart crib to help parents get more sleep, while Fend invented a packable bike helmet that collapses down to one third of its original size. And we rounded up eight inexpensive homes made from earth that almost anyone can afford.
AIVAnet 