Apple’s 2014 Product Roadmap: New iWatch, iPhones, iPads, Apple TV, and MacBooks Coming

Apple is set to release a slew of new products during the third quarter of 2014 according to KGI securities analyst Ming Chi Kuo, who often provides reliable information on Apple’s product lineup.

In a 2014 product roadmap, Kuo suggests Apple will introduce its first new product of the year, a lower-cost iMac, during the second quarter. Soon after, during the third quarter, Kuo predicts Apple will introduce an upgraded iPad Air and iPad mini, followed by an iWatch in two separate sizes, and a 4.7-inch iPhone.

An upgraded Apple TV set-top box will come somewhat later, as will the rumored 12-inch ultra slim MacBook and upgraded Retina MacBook Pros. Later, in the fourth quarter, Apple will introduce the 5.5-inch iPhone, which is said to be delayed due to issues with in-cell display technology. Along with his roadmap, Kuo also gives specific information on each of Apple’s upcoming products.

– iWatch: Kuo believes the iWatch will ship during the end of the third quarter, offering biometric functionality, integration with the iPhone, iPad, and Mac, and a “fashionable appearance.” As has been previously suggested, he predicts the device will come in two sizes, with a 1.3-inch and 1.5-inch flexible AMOLED display. It will also include a sapphire cover lens, biometric recognition, an NFC chip, wireless charging, a 200 to 250 mAh battery, and a slim and light design. Kuo also believes that Apple will offer the iWatch at multiple price points, with the most expensive version costing upwards of $1,000.

– iPhone 6: Supporting previous iPhone 6 rumors, Kuo believes the device will come in two sizes: 4.7 and 5.5-inches, with resolutions of 1334×750 (326ppi) and 1920 x 1080 (401 ppi), respectively. Both models will come with an A8 processor, 1GB of RAM, LTPS display panels, optical image stabilization, and Touch ID. Kuo points to a 10 to 20 percent narrower bezel, a 6.5–7.0mm thickness, metal casings, and NFC integration. Mass shipments of the 4.7-inch version are expected in September, with the 5.5-inch version shipping later. Kuo suggests that only the 64GB 5.5-inch version will use sapphire displays.

– iPad Air 2: The second-generation iPad Air is expected to adopt Touch ID, an A8 processor, and an improved camera with a resolution of eight megapixels. Kuo believes the second iPad Air could come earlier in the year than the previous iPad Air, which was released in October.

– iPad mini with Retina Display: Like the iPad Air, a new Retina mini could gain an A8 processor and Touch ID, but Kuo believes it will retain the same form factor. He also suggests that the older iPad mini with Retina display could be sold at a lower cost.

– 12.9-inch iPad Pro: Kuo believes that Apple is indeed working on a 12.9-inch iPad, but he does not expect it to be launched in 2014.

– 12-inch MacBook Air: As rumored, Apple is believed to be preparing an ultrathin MacBook Air that incorporates a touchpad without buttons and functions without a fan. It is also expected to include a higher-resolution display.

– iMac: A lower-priced iMac is believed to be on the horizon, which Kuo says could help boost iMac shipments by up to 23 percent. It could be Apple’s first product launch of the year.

– Apple TV: Apple is not expected to launch a full television set this year, but an upgraded set top box with an App Store and motion control technology is expected.

While Kuo’s predictions do include many rumors that have previously surfaced over the past several months from a variety of sources, his roadmap gives a solid overview of what we might expect from Apple in 2014.

12″ Retina MacBook Air and Low-Price iMac Likely in 2014

In an extensive research note covering Apple’s product roadmap for 2014, KGI Securities Ming Chi Kuo reiterated expectations that Apple is working on a ultra slim 12″ MacBook Air but also revealed a new low-cost iMac in the works.

Kuo’s predictions for the 12″ MacBook Air match what was leaked in March from a reliable Chinese forum source. The new 12″ MacBook Air will “redefine notebook user experience”:

– Thinner than current models
– No fan
– Buttonless trackpad
– Higher resolution Display

Kuo first predicted this ultra thin 12″ MacBook Air late last year.

We expect the unprecedented 12” model will boast both the portability of the 11” model, and productivity of the 13” model. The high resolution display will also offer the outstanding visual experience of the Retina MacBook Pro. The offering will likely be lighter and slimmer than the existing MacBook Air to further highlight ease of portability in the cloud computing era. We think the form factor will showcase a much improved clamshell structure, and that it will redefine laptop computing once again following the milestone created by the MacBook Air.

Besides the 12″ MacBook Air, Kuo reveals that a “low-priced” version of the iMac is coming. The new model will help compete with companies such as HP and Lenovo as well as grow market share in Asia.

The 12″ MacBook Air is not expected until late 2014, while the low-cost iMac may come mid-year.

iPhone 6 Could See Sleep/Wake Button Move, 401 ppi in 5.5″ Model, Sapphire Display in High-End Phones

In an extensive research note, the well-sourced KGI Securities analyst Ming Chi-Kuo has shared additional details about his expectations for the next iPhone model, expected to be called the iPhone 6. Perhaps the biggest change that Kuo mentions is a move of the sleep/wake button from the top of the iPhone to the side, to better facilitate one-handed operation on larger iPhones.

In line with previous rumors, Kuo believes the new 4.7-inch model will come with a 1334×750 Retina display at 326 pixels per inch, while the 5.5″ will see a 1920×1080 screen at 401 ppi. Both devices will have the same aspect ratio to the iPhone 5, meaning apps will not need to be redesigned for the second time in three years.

The iPhone 6 will include a new A8 processor, 1GB of RAM, Touch ID, a narrower bezel by 10 to 20 percent, and the phone to be thinned to 6.5-7.0mm (the current iPhone 5 is 7.6mm thick). He also expects Apple to finally include NFC chips in its smart phones.

Renderings of iPhone 6 (4.7″) and iPhone 6 (5.7″) based on leaked schematics
For the 4.7″, Kuo says the narrower bezel will still allow one-handed operation along with a better visual experience because of the bigger screen. He believes shipments could approach 60 million units by the end of the year.

The 5.5″ phone won’t be operable with one hand, but Kuo says some smartphone users prioritize the visual experience over one-handed use. He believes the more profitable phone it could cannibalize sales of the iPad mini, as well as smaller tablets and phablets form competitors. He expects the 5.5″ iPhone 6 to debut later in the holiday quarter, with shipments just below 9 million units for the year. The 5.5″ iPhone will also see a significantly larger battery — 50% to 70% more watt-hours than the iPhone 5s — to power the larger screen, and also because there will be more real estate inside the case. It’s unclear if the larger screen will utilize all the extra battery or if device life will improve.

Kuo says only high-end iPhones — like the 64GB 5.5″ iPhone 6 — may include a sapphire screen cover due to supply constraints, though he says the company will want to begin integrating Touch ID sensing into the screen in the future and will need sapphire glass for accuracy.

He expects the iPhone’s rear camera to remain at 8 megapixels and f2.2 aperture, but it will see an adoption of optical image stabilization technologies to improve image quality without increasing pixel number, a frequent goal of Apple’s in the past. Finally, Kuo expects production of the iPhone 4s and 4 to be ended, with the iPhone 5s and 5c filling as the more inexpensive options in Apple’s smartphone lineup.

iWatch to Come in Two Sizes With ‘Fashionable Appearance’, Top End to Cost ‘Several Thousand’ Dollars

In a 2014 product roadmap that outlines all of Apple’s plans for the year, KGI Securities analyst Ming Chi Kuo revealed his predictions for Apple’s much-rumored iWatch, which may ship as soon as the third quarter of 2014.

According to Kuo, the iWatch will come in two separate sizes to accommodate different sized wrists: 1.3 inches and 1.5 inches. Multiple sizes for the device were first predicted in late 2013, though the original rumor pointed towards displays of 1.3 and 1.7 inches. Both watches will include flexible AMOLED displays with sapphire covers to protect the device from scratches.

Along with a multitude of biometric sensors, coupled in a system-in-a-package design, Kuo predicts the iWatch will include integration with the iPhone, iPad, and Mac, along with a “fashionable appearance,” an NFC chip, and a slim and light design.

Traditional watch-style iWatch concept by Gábor Balogh

We are confident on Apple’s ability to make wearable devices with good fashion sense, which sets Apple apart from rivals.

Kuo believes many of the iWatch’s mechanical parts may be constructed using liquid metal and that it may include an “innovative” antenna design that allows for wireless charging functionality.

Battery life has been a major challenge for Apple when it comes to iWatch development and Kuo forecasts a 200 to 250mAh battery for the device that will provide at least a one day of operating power. Earlier reports have suggested the company is aiming for three to four days of battery life, however, and Kuo does note that the battery will be longer than “most wearable devices” due to the company’s “vertically integrated operating system and key components.”

Kuo suggests Apple will release the iWatch at multiple price points and in a variety of materials, competing with low and high-end watches alike. At the high end, Kuo suggests Apple’s iWatch could sell for thousands of dollars.

Fashion is the name of the game; most expensive model likely priced at several thousand US dollars. Referring to the rules of the fashion market, we predict the iWatch casing and band will come in various materials. The most expensive model of the iWatch line will carry a price tag of several thousand US dollars.

Apple’s iWatch is not expected until the end of the year, but Kuo believes it will be the most important product of 2014, outshining even the iPhone 6. He is estimating shipments of 5.5 million units in 2014, which will rise to 30 to 50 million units in 2015.

Apple Confirms Retirement of Senior Designer Greg Christie Later This Year

Apple has confirmed the departure of Greg Christie, part of the original team behind the iPhone. His leaving the company was previously reported by 9to5Mac and was said to follow a falling out between Christie and Jony Ive, Apple’s design chief.

The WSJ reports that Christie’s “human interface” team will now report to Jonathan Ive, rather than the company’s software head Craig Federighi.

In a statement given to the Financial Times, Apple says that Christie has been planning to retire later this year and is still within the company.

Greg has been planning to retire later this year after nearly 20 years at Apple. He has made vital contributions to Apple products across the board, and built a world-class Human Interface team which has worked closely with Jony for many years.

Christie has worked with Apple since 1996 and was credited with the development of the “Slide to Unlock” feature of iPhones and iPads, though he is named as an inventor on hundreds of other patents.

New York Times reporter Brian X. Chen tweeted that Christie’s retirement was announced within the company “weeks ago”.

Was just told Apple VP Greg Christie's retirement was announced weeks ago. I don't know anything about Ive politics.

— Brian X. Chen (@bxchen) April 9, 2014

Apple’s statement doesn’t directly address the rumor that Greg Christie and Jony Ive had clashed over design direction, nor does the company specify his current role.

Apple Seeds OS X Mavericks 10.9.3 Build 13D38 to Developers [Mac Blog]

Apple today seeded build 13D38 of OS X 10.9.3 to developers, just under a week after releasing the fifth OS X beta, build 13D33, and a little over a month after the first 10.9.3 beta.

The beta is available through the Software Update mechanism in the Mac App Store as well as through the Mac Dev Center.

Apple continues to ask developers to focus on Graphics Drivers, Audio, Mail, Contacts and Calendar sync over USB in iTunes, and Safari. As was discovered with the first beta, 10.9.3 adds new support for 4K displays, offering “Retina” resolutions that improve readability along with support for 60Hz output from the Retina MacBook Pro.

U.S. Mac Sales Fall in Winter Quarter, Global PC Market Sees Continued Sales Falloff [Mac Blog]

Apple saw a year-over-year drop of 3.8% in U.S. market share according to a report released today by Gartner, with Dell and Lenovo capturing significant growth at the expense of the rest of the market. The U.S. PC market saw a small increase in total units shipped, while internationally the PC market contracted by 1.7 percent.

In the U.S. market, PC shipments totaled 14.1 million units in the first quarter of 2014, a 2.1 percent increase from the same period last year (see Table 2). HP maintained the No. 1 position, as it accounted for 25 percent of PC shipments in the U.S. market. Dell and Lenovo experienced the strongest growth among the top five vendors, with growth rates of 13.2 and 16.8 percent.

“In terms of the major structural shift of the PC market, the U.S. market is ahead of other regions,” Ms. Kitagawa said. “The installed base of PCs started declining in 2013, while the worldwide installed base still grew. The U.S. PC market has been highly saturated with devices: 99 percent of households own at least one or more desktops or laptops, and more than half of them own both. While tablet penetration is expected to reach 50 percent in 2014, some consumer spending could return to PCs.”

The overall international PC market fared worse than the U.S., a reversal of last quarter as tablets continue to eat into PC sales. Internationally, Lenovo, Dell, Asus and HP all saw solid market share growth at the expense of Acer and the rest of the market. Gartner considers PCs to include desktop and notebooks, including x86 tablets equipped with Windows 8, but excluding Chromebooks and other tablets like the iPad.

The data is preliminary, meaning Gartner can revise its numbers based on market conditions. Last year the firm revised its preliminary Apple numbers by more than two share points because the newly introduced iMac was in extremely short supply.

Separately, IDC reported similar overall trends, with Apple seeing its U.S. PC market share dropping to 10.3%, down from 11% last year. Globally, the firm saw the PC market shrink by 4.4 percent.

Apple has not updated any of its Mac products since early last fall.

Apple Expanding Marketing Efforts with New Ad Agencies to Battle Samsung Threat

Apple is planning to expand and improve marketing efforts by partnering with four new digital ad agencies, including WPP’s AKQA, Interpublic Group’s Huge, Area 17, and Kettle, reports Ad Age. The agencies will work on digital strategy and user experience, among other things.

The scope of the work being assigned across the agencies is broad, and will likely include user experience and digital strategy, among other elements, according to people familiar with the matter.

According to Ad Age, Apple’s new partnerships will not affect existing relationships, such as that with TBWA/Media Arts Lab. Apple’s longtime advertising partner was recently in the spotlight after the Apple vs. Samsung trial surfaced a heated email correspondence between the agency and Apple’s head of marketing Phil Schiller.

Apple and Schiller were unhappy with the TBWA’s early 2013 advertising efforts, but those relationship wrinkles were apparently ironed out as Apple has continued to work with the agency, producing the successful “Photos Every Day” and “Music Every Day” advertisements in late 2013.

Apple also works with several other digital shops and in 2013, the company began working on doubling the size of its in-house creative design team, likely as a response to increased pressure from Samsung. Samsung’s “The Next Big Thing” advertising campaign reportedly infuriated Apple executives, leading to its troubles with its own advertising agencies.

According to a recent report, Apple spent $351 million on advertising in the U.S. in 2013, while Samsung spent $363 million. In years past, Samsung has far outspent Apple on advertisements, but that gap appears to have narrowed as Apple has made moves to improve its marketing campaigns.

‘Slide to Unlock’ Engineer Greg Christie to Depart Apple After Fallout with Jony Ive

Apple’s Vice President of Human Interface Greg Christie is set to depart from the company after clashing with Jony Ive, Apple’s Senior Vice President of Industrial Design who oversees and guides the Human Interface teams, reports 9to5Mac. Ive first took on a role “providing leadership” for the Human Interface teams in late 2012, following Scott Forstall’s departure from the company.

Christie has led much of Apple’s software design and reports to Craig Federighi, who oversees development of iOS and OS X, but Christie interacts with Ive during design meetings. Christie’s team was responsible for redesigning iOS 7, which reportedly led to disagreements with Ive.

Sources say that Christie’s upcoming departure is significant and stems from a falling out with Ive. When Ive tasked Apple’s Human Interface team with redesigning iOS 7 to include an entirely new look, Christie and Ive reportedly clashed over design direction, after which Ive is said to have circumvented Christie’s leadership of the team during the new operating system’s development.

Following Christie’s departure, software design will fall under Ive’s umbrella, with software designers working alongside Ive’s industrial design team rather than Federighi’s group.

Christie, who has worked for Apple since 1996, was one of the original software engineers who developed iOS for the first iPhone. He recently did an interview with The Wall Street Journal detailing the development of the original iPhone and he testified in the second Apple vs. Samsung patent trial, telling the court that the “Slide to Unlock” feature he’s credited with inventing is an essential iPhone feature.

Along with “Slide to Unlock,” Christie has been instrumental in developing many important iPhone features, with hundreds of Apple patents in his name. It is unclear what he plans to do after his departure or when he will officially depart from the company.

Following the departure of Scott Forstall, Apple CEO Tim Cook spoke on the importance of collaboration and noted that the merging of software and hardware design was needed to take Apple’s collaborative efforts to the next level. Last year, Ive and Federighi also spoke on collaboration and how they worked together to create iOS 7. With Ive taking full control over software design with Christie’s departure, the integration between Apple’s software and hardware may improve even further.