MacRumors

A new report from KGI Securities' Ming-Chi Kuo suggests that Apple's sapphire partner GT Advanced Technologies' recent filing for Chapter 11 bankruptcy protection will not affect its upcoming Apple Watch. However, he cautions that it does raise concerns about the possibility of future iPhones using sapphire displays.

Bankruptcy has no impact on Apple Watch. As the Apple Watch sapphire cover lens uses an ingot of less than 6-inches, and as drop-test requirements aren’t so stringent as those of iPhone, general ingot manufacturing processes such as KY suffice for Apple Watch. This is why there are abundant sapphire ingot suppliers to choose from for Apple Watch. According to our survey, aside from GTAT, other Apple Watch sapphire ingot suppliers are Hansol (KR) and Harbin Aurora Optoelectronics (CN). We therefore don’t think GTAT’s bankruptcy will affect sapphire ingot supply to Apple Watch.

... but it raises uncertainties on iPhone touch panel use of sapphire cover lens.

Kuo suggests that GT Advanced's ASF (advanced sapphire furnace) sapphire ingot isn't the only one it's considering to use for iPhone displays, though it is the company's preference due to the superior drop-test performance of GT Advanced's sapphire. And while Kuo believes that Apple still wants to use sapphire displays for iPhones, the bankruptcy of GT Advanced will likely result in bottlenecks in ASF sapphire production. Other sapphire ingot suppliers are unlikely to benefit, as they do not measure up to Apple's higher drop-test standards.

Apple had been widely expected to include sapphire display covers on some iPhone 6 models, but that development did not arrive. As Kuo notes, Apple still plans to use sapphire displays for Apple Watch, as it uses an ingot less than 6-inches and Apple's standards for drop-tests on the Watch are not as stringent as those for iPhone.

Apple's iPhone continues to grow in popularity with U.S. teenagers, according to Piper Jaffray analyst Gene Munster's latest semiannual teen survey, which asked approximately 7,200 teens with an average age of 16 years about their device usage habits and future buying plans.

67 percent of surveyed teens owned an iPhone, compared to 61 percent in the Spring survey, and 73 percent of teens expect their next phone to be an iPhone. Much of Apple's gains in ownership came from Android, which lost five percentage points over the last several months. iPhone usage among teens may jump significantly in the next few months, as the survey was conducted just before the introduction of the larger-screened iPhone 6 and 6 Plus.

While iPad ownership remained high at 66 percent, there was no growth compared to the Spring survey. Android tablets also saw ownership numbers drop, and of customers planning to buy a tablet in the next six months, 60 percent plan to choose an iPad Air or iPad mini.

As for the upcoming Apple Watch, interest among teenagers remains relatively low. Only 16 percent of teens said they would be interested in purchasing an Apple Watch for $350, down slightly from the Spring survey where 17 percent expressed interest. Munster's survey was, however, conducted before the Apple Watch was announced, so interest numbers may shift in the next Spring survey.

Younger customers have always been important to Apple as it gives the company a chance to create lifelong customers. Apple's recent acquisition of Beats Electronics, for example, may have partially taken place as an effort to remain relevant among teenage users. In a survey of 10,000 students, a quarter believed the deal would make Apple more "cool," while 50 percent believed the acquisition would increase Apple's popularity among students.

Apple today released a second golden master candidate of OS X Yosemite to developers, a week after releasing the first candidate golden master and the fourth public beta. Apple has also released the fifth public beta to those who signed up to beta test the new Mac OS.

The latest Yosemite update, build 14A386a, can be downloaded from the Mac App Store and through Apple's Mac Dev Center.

OS X Yosemite brings a flatter, more modern look to OS X, with an emphasis on translucency and redesigned dock, windows, and more. It also includes a multitude of new features, such as improved integration with iOS 8 through Continuity, a new "Today" view in Notification Center that offers integration with third-party apps, a retooled Spotlight search with new data sources, and several new features for apps like Mail, Safari, and Messages.

Over the course of the beta testing period, each Developer Preview has added new features and refined the look and performance of OS X Yosemite, although changes have become less obvious in more recent builds as Apple begins finalizing Yosemite ahead of its public release, which is expected in late October.

The current build, like the previous golden master candidate, may not be the final version of OS X Yosemite, depending on the outcome of final testing. Last year, Apple seeded multiple golden master versions of OS X Mavericks, with the final version coming a couple of days ahead of the software's public release.

GT Advanced CEO Thomas Gutierrez sold over 9,000 shares of GT Advanced stock just a day before Apple announced the iPhone 6, reports The Wall Street Journal. The September 8 sale netted him approximately $160,000 at an average price of $17.38, before the company's stock dropped 13 percent to $14.94 on September 9 after it became clear the iPhone 6 and iPhone 6 Plus did not include sapphire screens.

As noted by The Wall Street Journal, though the timing is suspect, the September 8 sale was part of a pre-arranged Rule 10b5-1 Plan enacted in March, according to SEC filings. Along with the $160,000 he earned on September 8, however, Gutierrez sold shares on several other occasions throughout 2014, earning him more than 10 million dollars as GT stock rose on rumors that Apple would use its sapphire for the new iPhones. In comparison, the CEO did not sell any of his shares in 2013.

In a filing, GT said Gutierrez's share sale was part of a pre-arranged plan put in place on March 14, 2014. But there was no obvious pattern to his sales.

In May, June and July, Gutierrez sold shares within the first three days of the month. But then he didn't sell additional shares until Sept. 8, two days after he received 15,902 previously restricted shares. (Gutierrez forfeited the remaining 6,670 shares to cover tax obligations.)

GT Advanced filed for Chapter 11 bankruptcy protection on Monday, promising to continue operations as it goes through a transitional phase to reorganize its business. "Today's filing does not mean we are going out of business," said Gutierrez. "Rather, it provides us with the opportunity to continue to execute our business plan on stronger footing, maintain operations of our diversified business, and improve our balance sheet."

Apple and GT Advanced first partnered in late 2013, with Apple building a 700-employee manufacturing facility in Mesa, Arizona that's run by GT Advanced. The deal also saw Apple funding GT's purchase of furnaces and other sapphire-making equipment through a $578 million loan, doled out over several months and subjected to certain capacity requirements.

Under the terms of the agreement between Apple and GT Advanced, GT Advanced is required to pay back the $578 million loan over the course of five years. If the loan is not paid back, Apple is entitled to the equipment that GT Advanced purchased. When a deal was struck between the two companies, GT Advanced noted that sapphire production for Apple would result in substantially lower gross margins, but was confident that a recurring revenue stream would be beneficial for growth in the long run.

Apple was widely expected to include sapphire display covers from GT Advanced on some iPhone 6 models, and it is unclear why sapphire was not used at all. GT filings did, however, suggest that the company saw poor sapphire yield rates, which may have impacted Apple's decision to stick with alternate materials. Apple is not subjected to any type of commitment to purchase sapphire from GT Advanced, and though the Apple Watch does indeed include a sapphire cover, it is unclear whether the sapphire being used is sourced from GT.

GT's stock dropped approximately 90 percent after the company's bankruptcy announcement and has seen little gain since then.

Used as an in-car hands-free system, Siri causes a high level of mental distraction while driving, according to research conducted by the AAA Foundation for Traffic Safety. In a thorough study [PDF] that measured the cognitive workload of 45 drivers completing in-car tasks using various voice-based technologies, Siri's high complexity and low intuitiveness resulted in some of the highest levels of mental distraction.

Using a five-category rating system, researchers measured Siri-based interactions like sending and receiving text messages and emails, updating Facebook or Twitter, and modifying calendar appointments. Various measurements to record distraction were taken during three separate experiments, in-car on residential streets, without driving, and in a driving simulator.

Researchers tested Siri on an iPhone 5 with iOS 7, using a microphone and voice commands to make the setup both hands-free and eyes-free, with drivers unable to look at or make contact with the phone.

Siri was found to produce the highest mental workload on the researchers' scale, and use of Siri in a car even resulted in two crashes during the simulator study. It was also given the lowest rating of intuitiveness along with the highest rating of complexity, due to its lack of consistency and its inflexibility when it came to voice commands.

Common issues involved inconsistencies in which Siri would produce different responses to seemingly identical commands. In other circumstances, Siri required exact phrases to accomplish specific tasks, and subtle deviations from that phrasing would result in a failure.

When there was a failure to properly dictate a message, it required starting over since there was no way to modify/edit a message or command. Siri also made mistakes such as calling someone other than the desired person from the phone contact list. Some participants also reported frustration with Siri's occasional sarcasm and wit.

According to the researchers, interactions with Siri may improve over time as the voice assistant is able to learn accents and other characteristics of a user's voice, but many commands resulted in overly complex interactions that could be fixed via "improvements to the software design."

Though the AAA study looked at the distraction level when using Siri directly on an iPhone, it did not look at CarPlay, Apple's new in-dash system that the company says is a "smarter, safer way to use your iPhone in the car." Other similar in-dash systems did, however, result in high levels of cognitive workload in a companion study, but cognitive demand varied highly based on the number of comprehension errors and the number of steps required to complete an action.

Early CarPlay reviews have suggested that the system's Siri integration is improved compared to Siri on the iPhone, as it was judged to be easy to use with simple menus and navigation.

The study comes ahead of a set of voluntary guidelines the AAA is planning to create, encouraging users to minimize their cognitive distraction by cutting back on the use of voice-based technologies while driving. According to the AAA, voice-based interactions within a vehicle result in "significant impairments" to driving that may "adversely affect traffic safety."

Apple today released the second beta of iOS 8.1, build 12B407, to registered developers for testing purposes, just over a week after the release of the first iOS 8.1 beta.

Apple has also released Apple TV Software beta 2 and Xcode 6.1 golden master seed 2.

iOS 8.1 includes several bug fixes for issues in iOS 8, including a fix for a Bluetooth connectivity problem, and it also includes support for Apple Pay, Apple's mobile payments service that is launching in October.

Along with iOS 8.1, Apple is also simultaneously working on iOS 8.2 and iOS 8.3, all of which are expected to add new functionality to the operating system.

iOS 8 has had a rough start, with Apple temporarily removing HealthKit ahead of the launch of iOS 8 and then releasing an unstable iOS 8.0.1 update that disabled the cellular and Touch ID service of many users. Apple released iOS 8.0.2 to fix the issue, but several other problems have come to light, including a bug that causes iCloud Drive documents to be deleted.

Samsung's third quarter 2014 earnings are likely to disappoint as the company faces intense competition from both high-end and low-end competitors, even as Apple's newly launched iPhone 6 and 6 Plus are just starting to roll out. According to the Wall Street Journal, Samsung is expected to announce a quarterly operating profit drop of up to 62 percent in what may be its fourth consecutive quarterly decline.

Though it may see a marginal increase in smartphone shipments, Samsung's operating profit decline may be the result of lower handset selling prices and increased marketing costs as smartphone competition escalates.

Samsung’s smartphone business is facing intense competitive pressure at the low-end from Chinese handset makers, and at the high-end from the iPhone. With the iPhone 6, Apple essentially wiped out Samsung’s distinguishing feature: a big screen size. And with the jumbo iPhone 6 Plus, Apple has now entered into the “phablet” segment that Samsung pioneered.

One of Samsung's main component customers is Apple, although the iPhone maker has cut back significantly on its usage of Samsung parts. One major move away from Samsung came with the main A8 chip used in the iPhone 6 and 6 Plus, with Apple turning to TSMC for the first time for chip production. Some industry sources believe Samsung to still be producing a portion of A8 chips, but so far it does not appear any have been seen in teardowns of the new devices.

After almost three weeks of availability, Apple's iOS 8 operating system is now installed on 47 percent of devices, according to new numbers posted on Apple's App Store support page for developers.

That marks a very slight increase in adoption over the past two weeks, as back on September 21, iOS 8 was installed on 46 percent of devices. 47 percent of iOS users continue to stick to iOS 7, possibly due to a number of bugs that have plagued the launch of iOS 8.

Just ahead of the launch of iOS 8, all HealthKit-enabled apps were pulled from the App Store due to a major HealthKit bug. A fix was quickly released, but the update, iOS 8.0.1, disabled the cellular service and Touch ID functionality on iPhone 6 and 6 Plus devices.

iOS 8.0.2 fixed the problems introduced with iOS 8.0.1 and brought several other bug fixes, but the publicity surrounding the iOS 8.0.1 issue may have discouraged some users from updating.

Along with the critical bug introduced with iOS 8.0.1, several other problems have come to light. An iCloud Drive issue with the "Reset All Settings" option causes iCloud Drive documents to be deleted from iCloud, and multiple users have experienced problems with Bluetooth. Furthermore, iOS 8 users have complained of other issues with the operating system, including slow wi-fi speeds and excessive battery drain.

Apple's iOS 8 adoption numbers closely mirror data from Mixpanel, which also puts iOS 8 adoption at 47 percent. iOS 8's adoption rate appears to be slower than iOS 7 adoption as Mixpanel's numbers last year put iOS 7 adoption at 69.7 percent 20 days after launch.

iOS 8.1, seeded to developers last week, fixes at least one major problem, repairing the Bluetooth pairing issue many users have been facing. The update also includes support for Apple Pay, which is expected to debut in October.

According to Apple, both the iPhone 6 and the iPhone 6 Plus have "faster LTE download speeds" than the iPhone 5s, reaching up to 150Mbps thanks to the inclusion of the Qualcomm MDM9625M LTE chip, which supports LTE Advanced.

A demonstration of the speed difference between the iPhone 5s and the iPhone 6 when connected to a high-quality LTE network has been conducted by iClarified, suggesting the iPhone 6 is able to reach much higher speeds than the iPhone 5s.

The test, which was conducted in London, Ontario, Canada on the Fido network, shows the iPhone 6 topping out at download speeds of 101Mbps while the iPhone 5s reaches 35Mbps. Upload speeds are similarly improved, reaching 27Mbps on the iPhone 6.

We were able to consistently reach speeds in the high 90s with the iPhone 6. The absolute highest download speed we were able to obtain was 111 Mbps. I'm confident that if the conditions were optimal we could have obtained even higher speeds.

First introduced in 2013, LTE Advanced takes advantage of carrier aggregation technology, combining separate spectrums into a single faster connection to increase data speeds and network capacity. Several carriers offer the technology, and the iPhone 6 and 6 Plus are Apple's first devices to support it. Because not all carriers support LTE Advanced and due to differences in connection strength, not all users may see increased speeds on Apple's new devices.

Along with LTE Advanced, Apple's iPhone 6 and 6 Plus offer several other connectivity improvements, including support for up to 20 different LTE bands. With additional bands (7 more than the iPhone 5s), iPhone users are able to connect to more LTE networks when traveling abroad and LTE connections are available in more countries. The phones also include support for voice over LTE (VoLTE), improving voice quality and allowing some users to access voice and data simultaneously over LTE for the first time.

More than a decade ago, Walter Isaacson began working on a book to highlight the history of computers and the Internet, but the project was sidelined in early 2009 when he took on the task of writing Steve Jobs' authorized biography. That book, which debuted just weeks after Jobs' death in October 2011, topped best seller charts and revealed a number of interesting details about Jobs and Apple.

Following the publication of Steve Jobs, Isaacson returned to his earlier project of documenting the history of computing, and that work debuts tomorrow as The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution. While Apple and Jobs play relatively minor roles in the book, overall it offers an interesting look at how computers and the Internet developed into what they are today.

Isaacson breaks his book into nearly a dozen different sections, highlighting a number of advancements along the way. It begins with Ada Lovelace and Charles Babbage outlining their thoughts on a mechanical "Analytical Engine" in the 1830s and 1840s before jumping ahead nearly 100 years to Vannevar Bush and Alan Turing and their visions for the earliest computers that would follow soon after. Further sections address advances in programming, transistors, microchips, video games, and the early Internet before broaching the topics of the modern personal computer and the World Wide Web.

Throughout the book, Isaacson focuses on the importance of teamwork rather than individual genius in the development of computers, frequently involving contrasting but complementary personalities of visionaries, technical experts, and managers. Popular examples include Steve Jobs and Steve Wozniak at Apple, or Bob Noyce, Gordon Moore, and Andy Grove at Intel, but the observation extends further as time and time again teams have been responsible for many of the biggest innovations.

Innovation comes from teams more often than from the lightbulb moments of lone geniuses. This was true of every era of creative ferment. [...] But to an even greater extent, this has been true of the digital age. As brilliant as the many inventors of the Internet and computer were, they achieved most of their advances through teamwork.

Isaacson also emphasizes the importance of building on previous discoveries, including collaboration both within and between generations of scientists. A number of characters in the book appear at multiple stages, often first as innovators themselves and later helping to foster discoveries by the next generation.

Other observations include the various roles of government, academia, and business in the development of computing and how they frequently came together, particularly in the early days, to lead advancements. Isaacson also uses several cases to argue that innovation works best when different business models compete against each other, particularly in software development as with Apple's integrated systems vying with Microsoft's unbundled model while the free and open-source approach maintained its position in the market.

Each model had its advantages, each had its incentives for creativity, and each had its prophets and disciples. But the approach that worked best was having all three models coexisting, along with various combinations of open and closed, bundled and unbundled, proprietary and free. Windows and Mac, UNIX and Linux, iOS and Android: a variety of approaches competed over the decades, spurring each other on -- and providing a check against any one model becoming so dominant that it stifled innovation.

Packing the entire history of computing into 500 pages leaves some topics feeling brief or left out altogether, but Isaacson's book gives an interesting overview for those who may not be familiar with the technical advances stretching back decades that have given rise to the current state of the art. Focusing more on the people and relationships than the technical details, it offers some insight into how breakthroughs have been made and how some innovators have gained fame and fortune while others slipped into near obscurity.