MacRumors

Apple acquired Seattle-based cloud networking startup Union Bay Networks sometime in the last couple of months and has opened an office in the city that houses more than 30 engineers, reports GeekWire. The site uncovered Apple's acquisition and Seattle office after former Union Bay Networks co-founder Benn Bollay posted a job opening for a Systems Software Engineer that read "Ever wanted to work at Apple, but didn't want to live in Cupertino?"

Apple later confirmed the acquisition of Union Bay Networks to The Seattle Times, providing its standard acquisition statement: Apple "buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans."

Union Bay Networks was a stealth startup focused on "enabling the next generation of networking for cloud computing and software defined datacenters," and seven out of nine former employees are said to have been hired by Apple, moving to an unknown office location.

Apple's Seattle office is already home to more than 30 employees, and the company is hiring more, posting two software engineering positions in the city last week. Both positions mention a focus on the design and development of core infrastructure services, and both mention iCloud, suggesting Seattle is being positioned as the hub for Apple's future cloud development projects.

At its Worldwide Developers Conference in June, Apple announced HomeKit, a platform designed to allow smart home devices to seamlessly integrate with iOS devices via Bluetooth and Wi-FI. As part of the certification process for Apple HomeKit, manufacturers must purchase their Bluetooth and Wi-Fi chips from Apple-approved chipmakers like Marvell, Texas Instruments and Broadcom. Those Apple-approved chips have begun shipping to smart home accessory makers, according to Forbes.

These chipmakers have begun shipping their chips loaded with HomeKit firmware to device manufacturers, Broadcom and Texas Instruments have confirmed to me. That means we could begin seeing HomeKit-certified devices show up on store shelves sometime soon. Although Apple hasn’t officially launched HomeKit yet, device makers can at least start putting together their gadgets now that they have the wireless chip armed with the HomeKit firmware.

Brian Bedrosian, Broadcom's senior director of embedded wireless, tells Forbes that smart home device makers are "getting ready" and that users should "expect to see new product launches in the next cycle of product releases." Bedrosian does caution that the firmware on the chips hasn't been finalized by Apple yet, and is essentially just a beta version of HomeKit. Broadcom and other chipmakers will be able to update the firmware remotely as HomeKit's feature set continues to be developed.

According to Bedrosian, the smart home device market has been fragmented thus far, but HomeKit provides a reliable way to bridge protocols and create simple connections between various devices using iCloud.

We've already seen several products that will take advantage of HomeKit, including a smart USB charger, a line of connected home sensors from Elgato, and the August Smart Lock, but 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, and has finalized hardware specifications, bringing us one step closer to the launch of HomeKit.

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 chips shipping to manufacturers, we should be seeing additional hardware products with HomeKit support surfacing in the near future.

Apple today seeded the first beta of an upcoming OS X 10.10.1 Yosemite update to developers, nearly three weeks after first releasing OS X Yosemite to the public.

The new beta, build 14B17, is available through the Software Update mechanism in the Mac App Store and through the Mac Dev Center.

While it is unclear what improvements the first update to OS X Yosemite will bring, there are several bugs in the operating system including a major Wi-Fi issue that has caused connection problems for a number of users.

Apple is asking developers to focus on Wi-Fi, Exchange accounts in Mail, and the Notification Center.

Apple may be planning to discontinue its iPad mini lineup in order to focus its efforts on the upcoming larger-screened "iPad Pro," according to a somewhat questionable rumor from Taiwan's Economic Daily News [Google Translate] (via GforGames). The site believes Apple will cease updating the 7.9-inch iPad mini next year, making the new iPad mini 3, released in October, the last tablet in the series.

A preference towards larger screen sizes, the introduction of the 5.5-inch iPhone 6 Plus, declining iPad sales, and "fierce competition" in the tablet market are said to have led to Apple's alleged decision to discontinue the tablet.

It was a bit of a surprise when Apple announced a major update to the iPad Air in October, introducing an upgraded A8X processor, Touch ID, slimmer form factor, improved camera, and more in the iPad Air 2, while the iPad mini 3 gained no new features aside from Touch ID support. Rumors have suggested that the relatively minor update was due to the iPad mini's lack of popularity compared to the 9.7-inch iPad Air.

Apple has been known to pull resources away from products that are not selling well. For example, Apple has been investing fewer resources in the iPod touch, a device that no longer receives regular updates. The fifth-generation iPod touch was released in 2012 and while the device received a major update at that time, only a few changes have been made since then, tweaking storage capacities and prices. It's possible the iPad mini could go the way of the iPod touch -- remaining in the product lineup but receiving few updates.

Economic Daily News, much like Taiwanese news site Digitimes, appears to have some solid supply chain sources, but lack of context and ever-changing production plans have resulted in some serious rumor misses. For example, the site said that the iPad mini 3 would be 30 percent slimmer when it launched, and suggested the larger iPhone 6 Plus would not be called an iPhone. Some accurate information has come from Economic Daily News, however, including several correct rumors pointing towards Apple Watch sizing and release dates.

Apple's "iPad Pro," which is said to be replacing the iPad mini as a companion to the iPad Air, is rumored to have a screen size between 12.2 and 12.9 inches. It's said to be slightly thicker than the iPad Air 2, coming in at around 7mm, and it may have stereo speakers and an ultra high-definition display. A release date for the iPad Pro remains unclear, as Apple was said to be targeting an early 2015 launch but pushed back production in order to focus on the iPhone 6 Plus.

Christian Bale will not be starring as Steve Jobs in Aaron Sorkin's upcoming Steve Jobs biopic, according to The Hollywood Reporter. The actor has reportedly decided that he was "not right for the part," deciding to withdraw from the film.

Bale was announced as the star of the film just last week, with Sorkin saying that Christian Bale was "the best actor in a certain age range" to play Jobs, and that he had agreed to the part without an audition.

Set to be directed by Danny Boyle, who also directed the Oscar-winning hit Slumdog Millionaire, the upcoming Steve Jobs project focuses on three continuous 30-minute scenes that depict three of Apple's product launches.

While it is now unclear who will play Steve Jobs in the movie, Seth Rogen is reportedly in talks to play Apple co-founder Steve Wozniak, and Jessica Chastain, from The Help, is also being considered for an unspecified role in the film. Leonardo DiCaprio was previously in talks to star as Steve Jobs, but also opted not to take on the role.

Composed of a large group of retailers aiming to introduce the QR code-based "CurrentC" payments system, Apple Pay competitor Merchant Customer Exchange, or MCX, has been in the spotlight in recent weeks after the removal of Apple Pay support from Rite Aid and CVS, two prominent MCX members.

Following a hacking incident and negative press focused on CurrentC's convoluted QR code payment process and privacy issues, MCX has been scrambling to reverse the public's negative perception of CurrentC.

After a press conference last week where executives suggested MCX was under attack for "challenging the status quo" of large, entrenched payments systems, MCX chief operating officer Scott Rankin did an interview with USA Today to clear up more misconceptions about MCX and CurrentC.

One of the major privacy complaints about CurrentC centered around a requirement that users provide both a social security number and a driver's license when signing up. According to Rankin, this is only necessary for the pilot test, and he does "not expect to have those requirements" when CurrentC launches in early 2015.

Another issue has been CurrentC's ability to link to a customer's bank account, allowing merchants to avoid paying costly credit card fees, a feature Rankin says is actually based on customer preference. 75 percent of all purchases made at the 50 MCX merchants (including Walmart, Target, Lowe's, and more) are done with cash, debit cards, gift cards, and store cards, rather than with Visa, MasterCard, and American Express credit cards.

MCX has previously said CurrentC will accept debit and credit cards in addition to connecting directly to a checking account, and Rankin downplayed the focus on connecting to a user's bank account, saying that he doesn't expect it to be the most prevalent CurrentC payment method.

Rankin also addressed the QR code payment process, which has been described as "convoluted" by the media. He called it "frictionless," but even described in his own words, it requires several steps beyond Apple Pay's one-finger Touch ID checkout process. MCX has said that it will explore NFC in the future if necessary.

Here's how Rankin describes the checkout process with CurrentC.

After the sale is rung up, and you say you want to pay via mobile, "You pull out the phone, open the app, click pay and a QR code is displayed. She scans it, and you're done. It's like when the QR code is sent to you by the airline and you use it for your boarding pass. It's frictionless."

Finally, Rankin once again addressed the exclusivity agreements that bind all MCX members, stating that exclusivity terms are "closer to months than years."

Rite Aid and CVS, as MCX members, were required to cease accepting Apple Pay to remain part of MCX, but are free to leave at any time. Meijer, another MCX member, has opted to continue offering Apple Pay support in its stores, It is not clear if Meijer has left MCX or if it is ignoring exclusivity restrictions. Rankin confirmed there are no fines for companies that leave MCX, but he did not address the large sums of money companies have already invested in the program.

Rankin's full comments on CurrentC and MCX can be found at USA Today. MCX executives have plans to speak on CurrentC at the Money 20/20 conference in Las Vegas this week, further explaining how CurrentC will benefit consumers.

Starting this week, travelers on select Southwest Airlines flights will be able to listen to music streamed via Apple's Beats Music service. The airline today announced this new Beats Music option and provided a live demonstration onboard a 737 emblazoned with the Beats Music logo.

Southwest adopted Beats Music in response to growing consumer interest in streaming music.

"Southwest connects our Customers to what is important in their lives and in this case, it's music," said Kevin Krone, Southwest Airlines Chief Marketing Officer. "We continue to enhance our onboard offerings to remain current as our Customers' needs evolve, and with the addition of Beats Music on our entertainment portal, we're doing just that."

The in-flight service is free and includes hundreds of music lists compiled by Beats' own expert curators. It is available on WiFi-enabled Southwest flights and is compatible with iOS, Android, and other devices.

Apple purchased Beats Music and Beats Electronics in a $3 billion deal that was finalized earlier this year. As part of the deal, Beats co-founders Jimmy Iovine and Dr. Dre joined Apple and are reportedly using their music contacts and Apple's clout help make inroads in the streaming music market. Rumors suggest Apple is working to lower Beats' pricing and revamp the service early next year.

Audio expert Peter Eastty of Oxford Digital Limited has left the company he co-founded to work for Apple. According to his LinkedIn profile, Eastty joined Apple in September of this year as the Director of SoC (System on Chip) Audio Processing.

Eastty's career in digital audio spans more than 40 years, including oversight of a pioneering digital audio team at Solid State Logic, a 13-year stint at Sony as a chief consultant engineer, and more than eight years as CTO at Oxford Digital. Most of his work has focused on digital audio and digital signal processing for audio equipment.

"I’ve worked in the application of digital and computer technology to audio since I graduated from college and I still find the problems fascinating as well as the answers."

Details on Eastty's role as Director of SoC Audio Processing are unknown, but he likely is using his DSP expertise to improve the audio quality of Apple's hardware. Earlier rumors suggested Apple was working to add support for 24-bit audio files in iOS 8 and create a new 24-bit capable version of its In-Ear headphones, but those reports have not yet panned out.

Eastty is not the only audio pioneer hired by Apple in recent years. Back in 2011, Apple hired THX pioneer Tomlinson Holman to help "provide technical direction for the company in audio" as he reports on his LinkedIn profile.

(Thanks, Manu!)

Apple's October 20 debut for Apple Pay included support from many of the biggest banks in the United States, including Chase, Citi, Capital One, and Bank of America, but the company has said it has over 500 other banks working to roll out support for the mobile payments service. A few of the larger ones are listed on Apple's site as launching Apple Pay support "later this year", and it appears that this next wave is now beginning to roll out.

Navy Federal Credit Union, the largest credit union in the United States with over 5 million members, today announced the immediate launch of Apple Pay support.

"We're excited to make this new service available to our members starting today," said Randy Hopper, vice president of credit cards and business optimization at Navy Federal. "Our members live fast-paced and mobile lives. And, they have enthusiastically adopted our mobile banking solutions. Now, with Apple Pay, they'll be able to save time when shopping while having a safe and easy payment experience."

USAA, another of Apple's key partners for the second wave, had previously announced plans to launch Apple Pay support this Friday, November 7, but several Reddit posters have noticed that support appears to have arrived a bit early.

A third partner for the second wave, US Bank, has also apparently flipped the switch, as several posters on Twitter have reported Apple Pay support going live today.

PNC Bank has also been telling customers it will launch Apple Pay support in the "next several weeks", with one Reddit poster being given a date of November 7, but again posters on Twitter are reporting support going live today.

Update: According to a MacRumors poster, Barclaycard is also working today. M&T Bank is also working.

Update 2: Apple has updated its support document listing Apple Pay card issuers to highlight the various types of cards from the newly added banks that are supported.

Update 3: Removed mention of Regions Bank, Renasant Bank, Keesler Federal Credit Union, and Zions Bank, as multiple forum posters have confirmed these banks are not yet supporting Apple Pay, contrary to initial reports from other posters.

Following an initial pilot program at a pair of its properties, hotel chain Starwood today announced the official launch of its SPG Keyless program that will allow hotel guests to use their iPhones or Android phones to check in for their stays and unlock their doors via Bluetooth. The system will go live this Wednesday in ten hotels around the world under Starwood's Aloft, Element, and W brands and expand to 150 hotel comprising 30,000 hotel room doors by the end of next year.

SPG Members must register their phone once through the SPG App and allow push notifications. After booking a reservation at a keyless hotel and approximately 24 hours before arrival, SPG members are invited to opt-in to SPG Keyless. Guests will receive a push notification noting that they are checked in and the SPG App will update with his/her room number and Bluetooth key when the room is ready. Upon arrival at the hotel, the guest can completely bypass the front desk (where available) and go directly to his/her room. After ensuring his/her Bluetooth is enabled, the guest simply opens the SPG App, holds the smartphone to the door lock, waits for the solid green light and enters the room.

Starwood's SPG: Starwood Hotels & Resorts app [Direct Link] has been updated today to support the iPhone check-in program, which is going live at hotels in Beijing, Cancun, Cupertino, Harlem, Doha, Hollywood, Hong Kong, New York City, and Singapore.

Starwood is not the only hotel chain working on phone-based room keys, with Hilton previously announcing its intentions for a similar program including check-in and room selection via app available in 4,000 hotels by the end of this year and and mobile phone room keys rolling out in 2015. And just today Hilton has reiterated those plans, announcing pilot testing of room keys early next year with an initial rollout to its Conrad brand soon after and expansion to additional brands coming in the summer.

Apple is planning to hold an investor call today ahead of a potential bond sale, reports The Wall Street Journal. A banker working on the deal says that Apple may begin issuing bonds in Euros, as Deutsche Bank AG and Goldman Sachs Group are said to be arranging the call.

Deutsche Bank and Goldman Sachs Inc. are arranging a call for the firm with investors Monday, and a deal, possibly at least partly in euros, could come as soon as this week, according to a person familiar with the matter. The iPhone maker has never issued debt in currencies other than the dollar before.

Apple last entered the bond market in April with a $12 billion sale, which followed last year's $17 billion sale. The order book for Apple's bond offerings in April 2013 topped $40 billion, as investors oversubscribed and offered bids for more than twice the amount of debt issued. Apple's bond offerings are a part of its expanded capital return program, which centers around a major stock buyback program and a quarterly dividend. Apple has pledged to return more than $130 billion to shareholders by the end of 2015.

Microsoft today launched a new ad targeting the MacBook Air and comparing the notebook to Lenovo's Yoga 3 Pro convertible laptop. The latest spot, which is titled "Let's Dance", features both laptops side-by-side and highlights the differences between the form and functionality of both.

Microsoft first highlights the thickness of both devices, showing that the MacBook Air is 17mm thick while the Yoga 3 Pro measures in at 13mm thick. Next, both laptops are shown in a "tablet" and "tent" position, showcasing the Yoga 3 Pro's ability to fold back while the MacBook Air is unable to do the same. Microsoft finally highlights the Yoga 3 Pro's touchscreen, which is then shown as a non-feature on the MacBook Air.

The new ad comes after Microsoft launched a new round of Surface Pro 3 ads targeting the MacBook Air in August, which showed off the tablet's versatility and power when compared to Apple's laptop. Microsoft has also released a number of ads comparing its "Cortana" virtual assistant on its Windows Phone platform to Apple's Siri virtual assistant on iOS, showing off the former's ability to integrate with a number of apps and perform contextually-aware tasks.

In a video message sent out to retail employees, Apple's Senior Vice President of Retail and Online Stores Angela Ahrendts revealed that the Apple Watch will be launching in the Spring of next year, reports 9To5Mac. The timeframe given is slightly more specific than Apple's own launch projection of "early next year", which was shared during its initial unveil of the Apple Watch back in September.

"So, again, we do - you guys were hired because you're the best people in the world. And you know how to service customers, but we are sprinting a marathon and it's not going to stop. Right? We're going into the holidays, we'll go into Chinese New Year, and then we've got a new watch launch coming in the spring."

The report also notes that Apple will be training its retail employees on how to introduce customers to the Apple Watch. Apple Retail Stores will allow customers to try on the wearable device and experience the different sizes and bands offered. The Apple Watch's presence at the company's retail stores are said to be a big emphasis for Ahrendts, who believes that sales of the device will help deepen relationships with customers.

A source briefed on Apple's plans for the Apple Watch told The Information in September that the company would be "lucky to ship it by Valentine's Day." That report stated that Apple planned to have the watch ready to ship in time for the 2014 holiday season, but had problems finishing software development in time. Hints of a delay on the software side first surfaced shortly after the device's unveiling, as members of the press who were invited to spend some hands-on time with the devices noted that none of the display units were running the actual Watch OS operating system.

While Intel's next-generation Broadwell processors for most Macs are not shipping until early 2015 or even later, the company began shipping some ultra low-power Broadwell chips known as Core M a couple of months ago. These chips are designed to run at just 4.5 watts and are intended for next-generation fanless PCs and tablets, fitting perfectly with circulating rumors of a thinner, fanless 12-inch MacBook Air, potentially with a Retina display.

The first batch of Core M chips launched in early September consisted of the 5Y10/5Y10a running at a base frequency of 800 MHz with a maximum of 2 GHz turbo, along with the more powerful 5Y70 running at 1.1 GHz with a max turbo of 2.6 GHz. But as pointed out by CPU World, Intel now appears to have quietly added several new processor options to the Core M family. Internal roadmaps had targeted an early 2015 launch for these chips, but Intel's chip database shows the new chips as having launched this quarter.

The new chips, which we understand Apple has indeed been testing with the upcoming 12-inch MacBook Air, include a new high-end 5Y71 chip running at 1.2 GHz with a max turbo of 2.9 GHz, two new mid-range chips arriving as 5Y51 and 5Y31, and a new low-end 5Y10c variant. As noted by CPU World, all of the new chips offer faster graphics than the initial batch of Core M chips, with base graphics frequencies moving from 100 MHz to 300 MHz across the board and turbo frequencies in some cases rising slightly to as high as 900 MHz.

Lenovo's Yoga 3 Pro is the first PC to take advantage of the first batch of Broadwell Core M chips, and performance has been lackluster. It is unclear, however, whether the issues are due more to Core M's limitations for the sake of power efficiency or to Lenovo's design decisions. Still, the new second batch of Core M chips appears to mark a significant step forward from the earlier versions while maintaining the same low power draw.

The launch timing of Apple's rumored 12-inch MacBook Air remains up in the air, with one rumor pointing to a likely mid-2015 launch. But with Intel moving forward on its Broadwell Core M chip lineup and perhaps accelerating its launch plans for those chips, it will be interesting to see if Apple looks to launch the new, thinner MacBook Air earlier in the year.