Apple Watch Demand Flattening as 42mm Models Estimated to Represent Over 80% of Orders

KGI Securities analyst Ming-Chi Kuo issued a note to investors today that claims Apple Watch demand may be slowing down, resulting in shipment forecasts being revised down by 20% to 30% to 5-6 million units in the third quarter.

Kuo expects total Apple Watch shipments to fall within the 15 million range for the 2015 fiscal year, lower than the consensus of 20-30 million units, but remains upbeat about the Apple Watch and long-term wearable trends.

KGI Securities conducted a survey that reveals most Apple Watch orders are scheduled to ship in June, and concludes that 2Q15 production output is likely sufficient for the orders placed so far. Kuo also notes that over 80% of orders are for larger 42mm models, implying a male-dominated customer mix based on the assumption that 42mm and 38mm watches are mainly purchased by men and women respectively.

“We have learned that 42mm Apple Watch accounts for 60-70% of production. However, the shipping times of 38mm models are generally earlier than those of 42mm. We believe this is because demand for 38mm watches is significantly below that of 42mm ones. We estimate that 42mm models account for over 80% of sales. Assuming that 42mm and 38mm watches are mainly purchased by men and women respectively, the Apple Watch has attracted mostly men.”

Kuo concludes that the Apple Watch, like the original iPhone, has potential albeit several areas that could be improved. In particular, he says the Apple Watch has a lack of killer apps, not a very useful Digital Crown, insufficient battery life, room for form factor improvement, sometimes sluggish processing and response times and iPhone dependance for most settings and internet access.

Apple iPhone Lightning Dock Review: Simple Design With Broad Compatibility, but Some Stability Concerns [iOS Blog]

Apple’s history of iPhone docks is rather hit-or-miss, with the company’s recent designs generally tailored tightly to the profiles of the iPhones they were designed for, preventing the use of cases on the iPhones and making the docks incompatible with later iPhone designs.

That changes with the new iPhone Lightning Dock, introduced yesterday a full eight months after the launch of the iPhone 6 and 6 Plus. The new dock forgoes a form-fitting iPhone-shaped depression in favor of a simple Lightning connector embedded in a small, slightly pliable nub to cushion the device as it rests on the connector.

iPhone 6 Plus with Apple Leather Case on iPhone Lightning Dock
The design has some advantages: it offers a clean and simple look and it’ll fit any iOS device with a Lightning port, including many of those with cases. The lack of a recessed docking area also keeps the iPhone’s Touch ID home button easily accessible while the device is docked.

There are definitely some downsides, however, with the most obvious being stability. With the Lightning connector being the sole means of support for the iPhone, the device does tend to rock side to side if bumped. And while the Lightning connector is very firmly embedded in the base of the dock and does not feel in danger of being damaged, users may have concerns over potential damage to their iPhone’s Lightning port if the device should happen to be bumped strongly while mounted on the dock.
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Apple Considering Major Corporate Expansion in North San Jose

Apple is considering a major corporate office expansion in northern San Jose, California, according to the Silicon Valley Business Journal. The report claims that Apple is shopping at least two properties that it could lease in the city: Ellis Partners’ 296,000-square-foot 101 Tech R&D building along Orchard Parkway and the 1.5-million-square-foot Coleman Highline development site near the Mineta San Jose International Airport.

Ellis Partners’ 296,000-square-foot 101 Tech R&D building along Orchard Parkway
With limited real estate options remaining in its Cupertino, California hometown, Apple has expanded to nearby Santa Clara and Sunnyvale in recent years. But with a growing demand for additional office space, beyond its existing One Infinite Loop and upcoming Campus 2 headquarters in Cupertino, the company could soon make its first big splash in San Jose, the largest city in Silicon Valley.

“If Apple does do some kind of expansion into North San Jose, it may have more to do with simple availability than anything else given the lack of building sites closer to Apple’s home,” the report claims. “That’s not necessarily a bad thing, but simply the path of progress. And San Jose could finally be in the middle of it.”

The report claims that some other companies including Tesla have shown interest in the real estate properties, and notes that it is possible the company does not sign a deal in the end. San Jose is home to a number of large technology companies, including Adobe, Cisco, eBay and IBM, but has failed to attract heavyweights such as Facebook, Google and LinkedIn. Roughly 25% of Apple employees live in San Jose per a 2013 economic impact study prepared for Apple.

Olloclip Debuts New Telephoto + Wide-Angle ‘Active Lens’ for iPhone 6 and 6 Plus [iOS Blog]

Popular iPhone camera accessory maker Olloclip today announced the launch of the new Active Lens for iPhone 6 and 6 Plus, which combines a 2x telephoto lens with a new ultra wide-angle lens. The lens joins Olloclip’s other available lenses for the iPhone 6 and 6 Plus, giving photographers lens additions that are good for capturing landscapes, group selfies, and zoomed in shots.

Like the rest of the lens lineup for the iPhone 6 and 6 Plus, the Active Lens is compatible with both the front and rear-facing cameras. It includes a 2x telephoto lens on one side, which can be used to get closer to subjects, and a wide-angle lens on the other side, able to capture more of an area in a single shot. The wide-angle lens in particular will work well with the front facing camera, as it can capture a wider field of view for group selfies.

Capture it all. A brand new Ultra-Wide Lens gives the iPhone a wider “action camera” field of view for everything from panoramic landscapes to a group selfie on the front FaceTime camera.

Get in close. Switch quickly and easily to the Telephoto Lens with a 2x optical zoom and get twice as close to the action or achieve stunning portraits with a shallower depth of field.

Olloclip’s new Active Lens, along with the rest of its lenses, is compatible with the company’s recently announced Ollocase for the iPhone 6 and 6 Plus, which will be shipping out to customers in the near future.

The Active Lens can be pre-ordered from the Olloclip website for $99.

How to Answer and Make Phone Calls on Apple Watch [iOS Blog]

Did you ever think the day would come when we could call someone right from our wrists? It still seems like the stuff that science fiction is made of, but you can, in fact, make and receive phone calls on Apple Watch. On Apple Watch, calls are routed through the iPhone, but you can answer even with your iPhone in another room or tucked away in a pocket, carrying on an entire conversation right from your watch.

Answering a Call

Answering a phone call is self-explanatory. When the call comes in, all you have to do is tap the green answer button. If you don’t want to answer it, you can tap the red decline button and send the call to voicemail instead.

You can also choose to answer the call on your iPhone or send a text message. When the call comes in, turn the Digital Crown or swipe upwards to access these options.
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Automatic Unveils New App Gallery and Car Adapter With Real-Time Data Support [iOS Blog]

Automatic today announced the release of a second-generation Automatic Adapter, which adds dual Bluetooth data streams, built-in GPS, Made for iPhone (MFi) certfication, and an improved connector to its existing feature set.

Like the original Automatic Adapter, the new version plugs into a car’s OBD-II port to provide information like distance traveled, gas used, time spent in the car, and more. It’s able to provide notifications to advise drivers on when to ease off on the gas and brake pedals to optimize speeds and save gas, and it can deliver information on what’s wrong with a car via check engine alerts.

Data collected is aggregated into a weekly driving score, and via Bluetooth, the accompanying app can let you know where your car is parked. A free crash alert service sends assistance whenever a severe collision is detected.

Along with a new Adapter, Automatic also announced an SDK and an App Gallery, which houses third party apps that are able to take advantage of the data that Automatic supplies. There are more than a dozen apps that already offer Automatic integration, like IFTTT, Nest, Yo, and Pebble.

One of the major features that Automatic’s new app integration brings is the ability to see a car’s raw performance data in real time (with the new Adapter). Automatic now delivers data to DashCommand, Harry’s LapTimer, and OBD Fusion, three apps that can read information from a car’s OBD-II port sent from the Automatic.

With Automatic’s SDK, additional apps may include data from the Automatic Adapter in the future. The SDK offers access to information like mileage, routes, driving events, real-time speed, RPM, and more.

The Automatic Adapter can be purchased from the Automatic website for $99.95.

Refurbished iPad Air 2 Models Now Available From Apple Store

Apple today added several iPad Air 2 models to its online store for refurbished products, marking the first time refurbished versions of the iPad Air 2 have been made available for purchase.

Released in October of 2014, the iPad Air 2 features a slimmer body than the original iPad Air, plus a triple-core A8X processor, an 8-megapixel camera Touch ID, and a gapless display with an anti-reflective screen coating.

Apple is currently offering several refurbished iPad Air 2 models, ranging from the entry-level 16GB Wi-Fi only iPad Air 2 to the 128GB Wi-Fi + Cellular iPad Air 2. All models are discounted by 15 to 17 percent, dropping prices by $80 to $160. For the entry-level Wi-Fi only 16GB model, the discount lowers the price to $419 from the original $499 price tag.

That price point beats many sale prices from third-party vendors, and as with all of Apple’s refurbished products, the iPad Air 2 models come with a full 1-year warranty, a new battery, and a new outer shell.

Apple’s refurbished inventory fluctuates on a regular basis based on available supply, so models that are available today may not be available tomorrow. The refurbished iPad Air 2 models can be purchased immediately from the online store.

(Thanks, Phil!)

Carl Icahn Still Believes in Apple HDTV as AAPL’s Market Share Surpasses $750 Billion [iOS Blog]

Activist investor and billionaire Carl Icahn, during an interview with CNBC today, expressed confusion over The Wall Street Journal‘s recent report claiming that Apple scrapped its plans for a full television set more than a year ago. Icahn and his investment firm Icahn Enterprises remain confident that Apple will enter the television and automotive spaces, even as analyst Gene Munster admits he was wrong.

http://player.cnbc.com/cnbc_global?playertype=synd&byGuid=3000380919
Icahn issued an open letter to Apple CEO Tim Cook on Monday in which he applauded the company for recently increasing its share repurchase authorization by $50 billion, and encouraged further acceleration of the stock buyback program. Icahn also valued Apple shares at $240 each and said the company will sell 55” and 65” ultra HDTVs in 2016 and introduce an Apple-branded car by 2020.

“After many years of rumors as part of Apple’s push into television and as we referenced previously, we expect in FY 2016 Apple will sell 55” and 65” ultra high definition television sets,” said Icahn in his open letter. “We forecast revenues of $15 billion in FY 2016 and $37.5 billion in FY 2017 on 10 million and 25 million units respectively with average selling prices of $1,500.”

The open letter also predicts that the iPhone will experience modest 2.3% revenue growth in the 2016 fiscal year, the iPad will rebound with a strong performance and revenue growth of 27.7% in FY 2016 and the Mac will continue to make gains over the next year. Icahn Enterprises predicts 10 million Apple Watch sales in the second half of 2015 and international expansion of Apple Pay.

Apple shares are currently trading at just over $130 as of publication time, giving the company a market capitalization of over $753 billion. In the past twenty-four hours, Apple surpassed the $750 billion market cap milestone for the first time as AAPL shares have risen following the open letter. Icahn himself has earned about $3.4 billion since announcing his position in the company in August 2013.