Apple Trying to Help GT Advanced Meet Milestones, Holds Off on Asking for Loan Repayment

Earlier today, an Apple representative told Reuters that the company was surprised by GT Advanced’s decision to file for Chapter 11 bankruptcy on Monday, and The Wall Street Journal has now published some new information on the behind the scenes dealings between the two companies.

According to inside sources, Apple was caught off guard by GT’s filing because it had been working with GT to make sure the latter company would be able to pay all of its debts. Apple, aware of GT’s weak cash position, also reportedly held off on asking for loan repayments on the $439 million GT has received so far.

On Wednesday, Apple called the bankruptcy filing “a surprising decision.” A person familiar with the matter said Apple had been working with GT to keep it solvent. In addition, Apple hadn’t demanded repayment of loans as it could have, based on GT’s weak cash position, people familiar with the matter said.

As part of its loan agreement, Apple was entitled to ask GT Advanced for repayment if its cash holdings fell below $125 million, but Apple has opted not to demand repayment.

In addition to holding off on asking for loan repayment, Apple is also attempting to help GT qualify for the final $139 million payment that Apple has thus far withheld from the company. GT has not yet received the payment because it has reportedly failed to deliver on the technical milestones that it was contractually obligated to meet under the original terms of the $578 million loan that Apple provided for purchasing equipment.

Though Apple was widely rumored to be using GT Advanced sapphire for the iPhone 6 and 6 Plus displays, the company opted to stick with Gorilla Glass, leading to troubles for GT Advanced. Apple provided GT with a facility and a loan to buy equipment, but was not required to purchase GT’s sapphire, which has eaten into GT’s cash pile.

GT, meanwhile, has reportedly run into manufacturing issues that have impacted yield, explaining why Apple may have passed on sapphire screens for its new iPhones. GT is also subjected to exclusivity provisions limiting what it is able to sell to other companies.

Apple’s upcoming Apple Watch will use sapphire on some models, but GT’s bankruptcy is unlikely to impact the production of that device as Apple can use sapphire from other sources. The future of sapphire display covers for iPhones is less certain, however, as there are few other sources where Apple can obtain enough high-quality sapphire.

GT Advanced will have its first Chapter 11 bankruptcy court hearing tomorrow, where it is expected to divulge additional information on the reasons behind its bankruptcy filing.

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Apple Surprised by GT’s Bankruptcy Filing, Considering Next Steps

In the company’s first public statement regarding the bankruptcy filing by its sapphire partner GT Advanced Technologies earlier this week, an Apple spokesman tells Reuters the company was surprised by the filing and that it is now figuring out its next steps.

“We are focussed on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps,” spokesman Chris Gaither said.

GT reportedly fell into difficulty when Apple withheld a final $139 million prepayment loan, part of a roughly $580 million package intended to help GT start up operations at the Mesa, Arizona sapphire production plant owned by Apple.

With Apple opting not to use sapphire for the display on the iPhone 6 and under no commitment to purchase sapphire from GT, the sapphire producer quickly started running out of cash. And with repayment on the Apple loan set to start in January, if not sooner, GT found itself needing to enter bankruptcy protection while reorganizing its business.

While the Apple Watch will use sapphire on some models, KGI Securities analyst Ming-Chi Kuo claims GT’s bankruptcy should have no impact on that product as Apple can source sapphire for that product from multiple sources.

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Apple Finalizes HomeKit Hardware Specifications, Adds HomeKit Support to Apple TV

We’re growing closer to the launch of the first hardware accessories that are compatible with Apple’s HomeKit home automation platform, as the company has recently published the final Made for iPhone (MFi) specifications for hardware developers. With the completed specifications, hardware manufacturers will be able to create products that are designed to integrate with the HomeKit platform.

All developers creating hardware for HomeKit must follow Apple’s MFi guidelines and incorporate the HomeKit technical specifications. As outlined by 9to5Mac, some of Apple’s final HomeKit specifications cover the pairing and security of Bluetooth LE and Wi-Fi connected HomeKit accessories.

While we’ve already seen several products that will take advantage of HomeKit, including a smart USB charger and a line of connected home sensors, Apple’s HomeKit supports a wide range of products like lightbulbs, locks, fans, thermostats, power outlets, garage doors, and more. Apple has also announced several partners already, including Philips and Honeywell.

Connected home sensors with HomeKit integration from Elgato
As Apple has worked to ready HomeKit for hardware developers, it has also been working on the software front. The latest beta of the Apple TV software, released alongside iOS 8.1 beta 2, includes explicit support for HomeKit, turning the Apple TV into something of a home automation hub.

The new Apple TV software turns the Apple TV into a remote access HomeKit peer, and as described by AppleInsider, this allows HomeKit devices to sync with the Apple TV, possibly giving users a way to control connected devices even when away from home.

In the future, an updated Apple TV set-top box could include long-rumored features like Siri support, letting users easily control HomeKit-connected devices from their living rooms through the Apple TV dashboard. HomeKit has been designed to work deeply with Siri, letting users control HomeKit hardware via voice commands.

At its Worldwide Developers Conference, several potential uses for HomeKit were demoed. For example, when a user has HomeKit-compatible hardware installed, Apple’s voice assistant Siri can be asked to “Close the garage, “Turn off the lights,” or “Lower the temperature.”

Apple has plans to hold a Made for iPhone (MFi) summit November 12 through November 14, providing accessory manufacturers and developers with information on HomeKit, iBeacon, AirPlay, and more, and with the finalized specification now available, we should be seeing additional hardware products with HomeKit support in the near future.

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Apple Invites Media to October 16 Event: ‘It’s Been Way Too Long’

As expected, Apple will be holding a media event on Thursday, October 16 at the Town Hall auditorium on its Cupertino headquarters campus, with the company today sending out media invitations for the event (via The Loop). The event begins at 10:00 AM Pacific, and the invitations carry the tagline “It’s been way too long”.

Apple is expected to introduce an updated iPad Air (and possibly a new iPad mini), as well as updated iMacs with at least the 27-inch model carrying a high-resolution Retina display. OS X Yosemite is also likely to see its final overview before public launch, and one rumor has suggested updated Mac minis are also in the works and could see an announcement at the event.

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iPad Air 2 Dummy Model Again Showcases Touch ID, Thin Profile Ahead of Expected October Unveiling

Well-known Vietnamese blog Tinhte.vn today published images that reportedly show the design of Apple’s next generation iPad Air 2. The pictured device has the same general form factor as the existing iPad Air, but includes a thinner 7 mm profile that measures roughly the same as the iPhone 6 and 6 Plus and thinner than the current 7.5 mm iPad Air. In line with previous rumors, the iPad Air 2 model also includes a home button with a Touch ID fingerprint sensor.

Claimed iPad Air 2 mockup from Tinhte.vn
While this latest report includes detailed photographs and a video, they only give us a hint at Apple’s next-generation iPad as the device in the photos is described as a dummy model used by accessory manufacturers to test out and showcase their designs and not an actual iPad Air 2 unit leaked from a Foxconn assembly line. Similar to previous leaks, the iPad model has the same external design features seen in earlier leaks and in MacRumors‘ own dummy unit on hand since June.

Tinhte dummy unit (left) vs. MacRumors dummy unit (right)
Of perhaps most note, the Tinhte.vn and other dummy models include two distinctive small holes in the area of the rear camera — one on the back and one of the side of the casing. The hole closest to the camera is undoubtedly for a microphone, while the other hole likely marks the presumed location of the mute/rotation switch, which is not depicted ini full on the models. Today’s report and an earlier one have suggested this hole is for a microphone rather than simply marking the mute/rotation switch location, but we believe this interpretation is likely incorrect.

Apple is expected to unveil its iPad Air 2 and possibly a new Retina iPad mini at a press event to be held on October 16. The next-generation iPad Air is rumored to included a faster A8 processor, anti-reflective display, Touch ID, and a gold color option.

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Apple TV update displays smart device info through HomeKit

Apple TV may soon be the defacto HomeKit smart home hub, judging release notes for the latest beta spotted by AppleInsider. The Software beta 2 release can now be “used for testing AirPlay and HomeKit with your iOS apps,” letting you set the devices as a remote HomeKit peer by connecting to iCloud. After that, info from smart devices like bulbs and thermostats will be automatically synced to Apple TV. Apple announced 18 partners at HomeKit’s launch, including Philips and Honeywell (but not Google-owned Nest) and has added several more recently. Though functionality seems limited for now, it looks like Cupertino is thinking ahead to the day when Apple TV could serve as a HomeKit mission control center. The set-top device is long overdue for a software overhall, so hopefully it’s the start of Tim Cook’s “grand vision” for Apple TV. If you’d like to try, you’ll need access to the developer portal and a dose of gumption.

Filed under: Home Entertainment, Apple

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Source: AppleInsider

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Working Apple 1 Motherboard, Vintage Apple European Headquarters Flag to Be Auctioned [Mac Blog]

On October 22, British auction house Bonhams will auction off a rare working Apple 1 motherboard that is expected to fetch between $300,000 and $500,000, reports Mashable. The motherboard itself was constructed by Steve Wozniak in Steve Jobs’ family garage for The Byte Shop, and carries the number “01-0070″.

Also up for auction is an original flag from Apple’s European headquarters, which was in use until 1996. The flag is expected to fetch somewhere between $1,500 and $2,500 and is said to be the only flag from the headquarters that was kept in “fine condition.”

Last year German auction house Breker sold two working Apple 1 computers, as one unit complete with its original white cardboard box sold for $330,000 while another unit sold for a record-breaking $671,400. The Apple 1 was originally released in 1976 and sold for $666.66. Approximately 200 total units were produced, as few remain in functional condition today.

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Apple’s Ultra-Slim 12-Inch Notebook Reportedly Entering Production in Small Quantities

Quanta Computer has begun production on Apple’s ultra-slim 12-inch MacBook and will look to ramp up its efforts beginning November, reports Digitimes. Despite these newest efforts however, the report also states that the notebook will not be ready in time for this holiday season.

Since initial production of 12-inch MacBook Air has not yet reached a satisfactory yield rate, component makers and Quanta are making efforts to hike yield rates for the time being, the sources said. As initial production is in limited volumes, 12-inch MacBook Air may not be able to hit the store shelves in time for Christmas, the sources indicated.

Specifically, component makers are reportedly having issues with the new MacBook Air’s ultrathin chassis, which is said to be slimmer than the current 11-inch and 13-inch MacBook Air. The supply chain sources also add that the 12-inch MacBook Air will come with a touch-enabled Retina display.

Rumors of an ultra-slim 12-inch MacBook from Apple have gained traction throughout the past few months, as reports from Jack March last month indicated that the notebook would launch in multiple color options and feature fanless internals. A fanless machine would also suggest that the machine would adopt an ultra low-power processor, such as the Broadwell-Y Core M processors recently announced by Intel.

However, a touch-enabled Retina display seems less likely for the 12-inch MacBook, as the inclusion of one would greatly increase the cost of the machine. A multi-touch 12-inch MacBook would also likely conflict with Apple’s rumored 12.9-inch iPad Pro, which is said to be launching early next year.

March’s report previously indicated Apple appears to be aiming for a mid-2015 launch for its 12-inch notebook. The notebook will reportedly come in silver, gold, and space gray options.

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