MacRumors

In addition to predicting an all-new Apple Watch 2 with a GPS, barometer, larger battery, and more, KGI Securities analyst Ming-Chi Kuo today claimed that upgraded first-generation Apple Watch models with faster TSMC-built processors and superior waterproofing will likely launch in the second half of 2016.

Kuo said the upgraded Apple Watch 1 models will not have a GPS, barometer, or other larger additions reserved for the Apple Watch 2, nor will the waterproofing improvements be as significant, suggesting only an incremental refresh of internal hardware. The watches are said to retain a similar form factor.

The well-connected analyst expects another Apple Watch price cut once the new models are launched, but he did not specify whether the reduction will apply to existing first-generation models, upgraded first-generation models, Apple Watch 2 models, or some combination of the three lineups. Apple lowered the starting price of the Apple Watch Sport to $299 in March 2016, a savings of $50 compared to the device's initial $349 launch price in April 2015.

KGI Securities analyst Ming-Chi Kuo issued a research note to investors today in which he predicts an all-new Apple Watch 2 will likely launch in the second half of 2016 with a faster TSMC-built processor, GPS, barometer, superior waterproofing, and a higher capacity battery.

Kuo, well connected within the supply chain, believes the second-generation Apple Watch will retain the same screen sizes and thickness as existing models, with a similar form factor overall, despite adopting thinner display technology. However, while the Apple Watch 2 was once rumored to include cellular connectivity, Kuo does not expect LTE support until 2017.

The analyst also predicted that upgraded first-generation Apple Watch models will debut in the second half of 2016 with similar processor and waterproofing upgrades, but likely without the Apple Watch 2's most significant additions like a GPS and barometer. Kuo expects another Apple Watch price cut once the new models are launched, but remains conservative about prospective shipments in 2017.

Apple Watch shipments could rise further between 2018 and 2020, pending significant form factor changes, FDA approvals supporting more medical and health applications, and 5G network commercialization, according to Kuo.

Apple has been pushing iPhone and Apple Watch sales together, so updated models of each device launching in tandem would be appropriate. The tentatively named iPhone 7 and iPhone 7 Plus are rumored to launch on September 16, with pre-orders possibly starting a week earlier on September 9, so all-new Apple Watch 2 and upgraded Apple Watch 1 models could debut around those dates.

Kuo did not confirm if the Apple Watch 2 will have a FaceTime camera and expanded Wi-Fi capabilities as previously rumored.

A high-definition video comparing three dummy iPhone 7 models has emerged online, reviving rumors that Apple is set to unveil two different versions of the larger 5.5-inch handset.

The 4K resolution video, picked up today by Dutch blog TechTastic.nl, was posted on YouTube by the account 'Bshop Kuwa', which appears to be linked to a Japanese iPhone reservation store.

A gold 4.7-inch iPhone 7 is shown beside two larger handsets, one in silver and one in rose gold. One of the two 5.5-inch handsets shown in the video has a single-lens camera, while the other is fitted with a dual-lens.

Early rumors had suggested Apple was working on two versions of the 5.5-inch iPhone 7, earning them the distinguishing monikers 'Plus' and 'Pro', but those rumors died down except for one set of images that appeared in July which briefly revived speculation.

Still, it's interesting to note that the dummy models shown in last month's images showed the iPhone 7 "Pro" model featuring a Smart Connector, whereas the corresponding handset in the latest video has none.

It's also worth noting that all the phones in the video bear the model number A1429, which actually identifies a version of iPhone 5 in Apple's numbering scheme and indicates that these are certainly mockups.

Despite that, this is the best-quality video we've had comparing the likely design of the 2016 iPhone 7 with last year's iPhone 6s, which also makes an appearance. The newer models bear the now familiar hallmarks of other expected design tweaks in store for the iPhone 7, such as repositioned antenna bands, larger cameras, and no headphone jack.

Also, while the models shown here don't tally with an alleged leaked front panel that appeared earlier this week, they do match up with the functional iPhone 7 video that appeared on Thursday.

Apple is expected to launch the iPhone 7 and 7 Plus next month. Pre-orders could begin Friday, September 9, ahead of retail availability on Friday, September 16, according to noted leaker Evan Blass.

Apple recently purchased Seattle-based machine learning and artificial intelligence startup Turi, reports GeekWire. Apple is said to have paid around $200 million to acquire the company, which was known as "Dato" until earlier this month.

Turi is designed to help developers build apps with artificial intelligence capabilities that automatically scale. It has developed the Turi Machine Learning Platform, GraphLab Create, and Turi Predictive Services, used for functions like recommendations, fraud detection, sentiment analysis, and more.

Turi toolkits simplify development of machine learning models. Each incorporates automatic feature engineering, model selection, and machine learning visualizations specific to the application. There is no faster way to build performant models.

Citing people familiar with the acquisition, GeekWire says Turi employees will remain in the Seattle area, where Apple has been establishing a presence over the past few years.

Apple confirmed the acquisition with the standard purchase statement it gives to media outlets: "Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans."

It is not known what Apple will do with Turi's technology, but Apple has made several AI-related purchases in recent months including VocalIQ, Perceptio, and Emotient.

With four months to go until the scheduled completion of Apple's second campus, work is progressing at a steady pace. Based on a new drone video posted this week, the main ring-shaped building at the center of the campus is nearly complete, as are many of the auxillary buildings.

Now that construction is getting to the end stages, workers at the campus have started the landscaping process. The giant pile of dirt that's been visible since the early stages of the campus is now dwindling down as its used for various landscaping projects.

Along with 80 percent green space, the campus will feature employee amenities like easily traversable jogging and cycling trails and basketball and tennis courts.

Apple plans to have the campus completed by the end of 2016 and employees are set to begin moving in at the beginning of 2017.

Over the past few weeks, images have claimed to show Apple's upcoming Lightning-enabled EarPods, but most were found to be fake as the design language of the headphones largely deviated from Apple's usual aesthetic, especially in regards to not having a thin, rectangular Lightning plug. Today, MobileFun posted a video of a working pair of Lightning EarPods, and the overall look of the accessory appears more in line with Apple's design than any of the previous leaks.

As is expected, the headphone part of the new EarPods is structured the same as the EarPods currently being sold by Apple, with a clean, white design, right and left markers on each earpiece, and in-line volume and play/pause controls. Interestingly, the in-line controls are placed farther down on the EarPods, directly below the right/left split in the cable design. If real, this would mark a design change from the current generation, which places the volume rocker along the right cable, above the bifurcation in the cord.

The most notable part is, of course, the long-rumored addition of the Lightning plug onto the EarPods, adapted to take advantage of the removal of the 3.5 mm headphone jack from the iPhone 7 and iPhone 7 Plus. The plug on the Lightning-enabled EarPods appears slightly bigger than Apple's traditional Lightning adapters thanks to the inclusion of a digital-to-analog converter needed for music playback and not just straightforward charging.

Multiple solutions for the removal of the 3.5 mm headphone jack have sprouted up over the past few weeks, with one of the most prevailing alternatives centering around a Lightning to 3.5 mm dongle that the company could potentially bundle into the box of the iPhone 7 and iPhone 7 Plus to cushion the transition for customers. More recently, it was reported that Apple could be working on completely wireless "AirPods" as an option for iPhone users, allowing simultaneous iPhone charging and headphone music playback, which is one of the most commonly occurring grievances surrounding the loss of the 3.5 mm headphone jack.

Previous Coverage: Lightning Headphones: Are They Better or Just an Inconvenience?

511 Innovations, Inc. is the latest patent troll to file a complaint against Apple with the U.S. District Court for Eastern Texas, claiming that the iPhone's proximity sensor infringes upon five of its patents.

The asserted patents¹, filed between 1999 and 2012, relate to various methods for measuring optical characteristics of an object, such as color spectrums, translucence, gloss, and position detection.

511 Innovations is a Texas-based non-practicing entity that does not appear to sell any sensor-related products, but instead seeks to enforce its patented technologies through litigation. Eastern Texas is a common district for patent holding firms to target larger companies like Apple, which has fought similar lawsuits from VirnetX, Dot 23, VoIP-Pal, and others in recent years.

The small firm acquired the asserted patents in 2013 from JJL Technologies, which claims to have sold world market-leading spectrophotometers, according to court documents filed electronically this week. It then licensed the patents to Spectral Sensors, whose website has been "under construction" since 2013. Further complicating things, JJL Technologies had acquired the patents itself from LJ Laboratories.

511 Innovations has demanded a jury trial and is seeking damages in the form of a reasonable royalty, plus interest and fees, in addition to a permanent U.S. sales ban on iPhones and all other infringing products and services.

Legal battles of this nature can prove costly. Last month, Apple agreed to license Cover Flow- and Time Machine-related patents from Mirror World Technologies for $25 million, and it agreed to pay another $25 million in a Siri-related in April. It is, however, close to escaping a $533 million verdict won by Smartflash, LLC, and a $625 million verdict won by VirnetX was overturned last week.

¹ U.S. Patent Nos. 6,307,629, 7,110,096, 7,397,541, 8,472,012, and 8,786,844.

Despite India's overall healthy growth in the smartphone market -- currently sitting as the third largest behind China and the United States -- Apple is having a tough time gaining ground in the country. According to a new report from Strategy Analytics, Apple saw a drastic percentage dip in iPhone users from 2015 to 2016, with 35 percent fewer iPhone devices sold this year. Earlier in May, Apple CEO Tim Cook admitted iPhones are too expensive in India, potentially harming the company's sales figures as it tries to grow.

In its new report, the market research firm said that Apple sold just 800,000 handsets in Q2 2016, while in the same year-ago quarter the company sold 1.2 million units. These deflating sales numbers rippled into Apple's operating system marketshare in India, essentially getting halved down from 4.5 percent in Q2 2015 to 2.4 percent in Q2 2016. Director of Strategy Analytics, Woody Oh, pointed out a few ways Apple might go about course correcting its current struggles in the country, including the ongoing saga of boosting its retail presence in India.

“Apple iOS fell 35 percent annually and shipped 0.8 million smartphones in India in Q2 2016. Apple’s smartphone marketshare has halved from 4 percent to just 2 percent in India during the past year. Apple iOS will need to reduce iPhone pricing to cheaper levels, attract more operator subsidies and enlarge its retail presence through Apple stores or online channels if it wants to regrow significantly in the future.”

Apple Stores aren't as ubiquitous in India as they are in other parts of the world thanks to the country's rules on foreign direct investments, which required 30 percent of goods sold by a foreign company to be manufactured or produced within India. Thankfully, after a ruling in June cleared the way for companies to circumvent that law, Indian Prime Minister Narendra Modi set a precedent by granting Apple a three-year extension on the strict local-sourcing rule, due to its single-brand retail company status selling "cutting-edge technology." Companies similar to Apple are expected to get similar treatment.

While the relaxation of these rules should help Apple moving forward, it doesn't change the fact that Android remained the dominant force in India this year. In total, 29.8 million Android smartphones shipped within the country in Q2 2016, growing from 23.2 million in the same quarter last year. Similarly, Google's Android operating system remained the dominant force in the Indian mobile market with a record 97 percent hold for the quarter, increasing from 90 percent a year ago.

Apple's retail future in the country might be turning around, but the company is still hitting smaller roadblocks on its route to increasing sales figures in India. In May, Commerce and Industry Minister Nirmala Sitharaman ruled "not in favor" of a proposal laid out by Apple to sell used iPhones in the country. Thanks to Apple's repeated growth frustrations, Strategy Analytics said that Android's domination of the Indian smartphone market "looks unbeatable right now, due to its deep portfolio of hardware partners, extensive distribution channels, and a wide range of low-cost apps like Gmail."

Back in September, MacRumors uncovered evidence that Apple had acquired Zurich-based real-time capture firm Faceshift, in a move possibly related to the development of biometrics for unlocking devices or authorizing payments through facial recognition techniques. Apple later confirmed the purchase in a statement.

Before the acquisition, Faceshift worked closely with game and animation studios on technology designed to quickly and accurately capture facial expressions using 3D sensors.

One of the lesser known aspects of Faceshift's business was licensing out its face tracking SDK to other companies, one of which was Xcessity, a small Austrian firm that specializes in designing human-computer interaction software to improve accessibility.

One of the most popular products made by the firm is KinesicMouse, which enables disabled people and those with degenerative conditions like Parkinson's disease to control a mouse through facial expressions. The functionality of the KinesicMouse software – which is also used in hospital settings – depended heavily on the SDK developed by Faceshift, which received a royalty fee for every purchased license.

Earlier this week, Xcessity CEO Markus Pröll revealed in a tweet and a post on the Xcessity forum that Faceshift had revoked the license following Apple's acquisition of the company, and that he would no longer be able to develop or offer the software:

The Faceshift SDK is the result of a research team that focused on this topic for several years at the university ETH Zürich. Whilst it would not be impossible to create such a software it would take way too much time and resources. Believe me after about four years of development I have tried about everything.

I don't know who or why the decision was made to cancel the existing license agreement. I want to explicitly mention that I don't make any claims that Apple or Faceshift is responsible for the cancellation. On this part I am left in the dark just as you are. All I can tell is that the guys from Faceshift have been very supportive through all those years.

The news came as a blow to users of the software, and Pröll says he has received "quite a few messages" from people who really depend on the app. One user of the software told MacRumors:

People like me depend on this affordable solution to access computer games. It brought me back to gaming although I have suffered from muscular dystrophy since I was a child. Shame on Apple for locking down such a solution.

If the license cancellation is indeed linked to Apple's acquisition of Faceshift, the KinesicMouse software would appear to be an unfortunate casualty, given Cupertino's stated commitment to accessibility. MacRumors has reached out to Apple for comment and we'll update this story with any forthcoming response.