MacRumors

Apple bought Beats Music to improve its standing in the streaming music marketplace, but the Cupertino company has its work cut out if it wants to compete with high-profile rivals Spotify and Pandora. According to App Annie metrics cited by CNET, Beats Music continues to trail its rivals in two important App Store metrics -- downloads and revenue.

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In the App Annie download rankings, Beats Music places ninth behind other music apps such as Shazam, GarageBand, SoundCloud and iHeartRadio. This lower ranking is undoubtedly affected by service pricing, as Beats Music requires a subscription while both Pandora and Spotify offer free, ad-supported options in their mobile apps.

By revenue, Apple's Beats Music benefits from its subscription model, ranking third behind market leaders Pandora Radio, which grabs the number one spot, and number two Spotify. The revenues measured in these metrics compromise only App Store payments to download the app and in-app purchases which include monthly subscription fees. It does not account for additional sources of revenue, such as advertising which is used extensively by Spotify and Pandora. Still, Beats is showing some improvement according to App Annie's statistics, moving up three spots on the revenue chart.

Apple purchased Beats Music as part of a larger $3 billion acquisition that also included Beats' popular line of audio products. Apple reportedly is planning to overhaul the Beats Music service with a refresh slated to debut early next year. The company allegedly also is in negotiations with music industry executives about slashing the monthly subscription cost, perhaps as much as in half to $5 per month.

iphone_6_6_plus_compApple is in talks with Iranian distributors that could see the iPhone being sold in the country should Western sanctions lift sufficiently, reports The Wall Street Journal. Senior Apple executives have reportedly met with Iranian distributors at its London headquarters to speak about potentially having Iranian retailers distribute Apple products as premium resellers.

In the conversations, the Cupertino, Calif., company explored the possibility of having Iranian partners sell Apple products at so-called premium resellers, three of the people said. Instead of company-operated Apple stores, such outlets would be midsize franchisees that sell Apple products only, —a model the company has used in Europe and Asia, the people said.

The contacts have involved over a dozen Apple employees, including technical and marketing professionals, the people said.

The United States has imposed sanctions that prevent companies from doing business with Iran, but in May, sanctions that prevented the sales of consumer communications equipment and software such as smartphones and laptops were lifted. The sanctions were removed in an effort to give Iranians a way to communicate on social media and through other channels to overcome communications restrictions enacted by Iranian authorities. This change potentially opens the door for sales of the iPhone and other Apple products in the country.

Apple is said to have consulted the U.S. Treasury's Office of Frozen Assets Control to ascertain how it could start operations in Iran and establish a relationship with Iran-based customers.

As noted by The Wall Street Journal, Iran may be seen as an attractive market to Apple as the country has a population of 77 million with 42 percent of people under the age of 25, along with a large middle class. There are obstacles that could make it difficult for Apple to sell iPhones in the country, however, including banking restrictions, locating mobile-service providers, and more.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Apple is forcing popular iOS calculator app PCalc to remove its Notification Center widget, which allows users to access calculator functions directly from the "Today" view of the Notification Center. According to Apple, widgets on iOS are not allowed to perform any calculations.

Apple's sudden decision to disallow PCalc's previously approved widget is somewhat surprising as the app is featured in multiple places in the App Store, including a section called "Extend Your Apps" featuring apps with unique widgets, and "Great Apps and Games for iOS 8," which also features a selection of Notification Center widgets.

PCalc was one of the first apps to be updated for iOS 8 and along with being featured on MacRumors in a list of apps with Notification Center integration, it was lauded for its convenient and unique use of the Notification Center in App Store reviews and in iOS 8 coverage from a variety of sites.

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Apple appears to have some fairly strict guidelines governing the proper usage of Notification Center widgets. PCalc is not the first app that's facing the removal of its widget, as Apple previously pulled Launcher from the App Store. Launcher installed a Notification Center widget that provided access to quick actions like making a phone call, opening a pre-defined Maps route, or sending a tweet.

Apple's App Extension guidelines do clearly state that Notification Center widgets should have a "simple, streamlined UI," a limited number of interactive items, and specifies that a widget is "not a mini version" of an app, but it does not appear to expressly disallow calculations. There's also a Pcalc app for OS X Yosemite that brings similar functionality to the desktop Notification Center and it is unclear whether Apple will also require the removal of that widget.

For the time being, PCalc can be downloaded from the App Store for $9.99, with access to the Notification Center widget included. [Direct Link]

Twelve South today announced a new horizontal stand designed specifically for the new model of Mac Pro. Unlike most of Twelve South's product line, the BookArc for Mac Pro is made of a shinier chrome plate that offsets the deep black colors of the Mac Pro itself. The specially designed stand allows Mac Pros to be placed horizontally, saving vertical space in cabinets and on shelves. Earlier in the year Apple confirmed horizontal placement of the Mac Pro unit was safe and operable, under certain guidelines.

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The beautiful, arc-shaped stand holds a Mac Pro horizontally, cutting the vertical height requirement in half. A lower height increases the number of places you can park the most powerful Mac available, including inside professional gear racks and studio shelves.

Is it safe to use a Mac Pro horizontally? Absolutely. It will perform exactly the same on its side as it will upright. In fact, the Apple Tech Note that refers to using a Mac Pro on its side was the inspiration for designing this curved metal stand. Historically, most stand-alone Macs were able to be used on their side or vertically. Twelve South now brings this flexible option to the newest Mac Pro with the BookArc for Mac Pro.

According to Twelve South, if placed inside a racked studio cabinet the Mac Pro on BookArc takes up only seven spaces against the fifteen it would occupy if placed vertically. Twelve South also sells BookArc for a wide variety of Apple products, including ones for MacBook Pro, MacBook Air, and nearly all lines of iPad, including the new iPad Air 2.

The BookArc for Mac Pro can be purchased today for $59.99 from Twelve South's official website.

Related Roundup: Mac Pro
Buyer's Guide: Mac Pro (Neutral)
Related Forum: Mac Pro

Irish firm Probendi is seeking to capitalize on Apple's announcement of the Apple Watch earlier this year by using its existing "iWatch" trademark in Europe to launch its own smartwatch device. Probendi director Daniele Di Salvo confirmed in a recent RTE Radio interview that the company will "absolutely push ahead" with its plans to build a smartwatch device that will compete with the Apple Watch, reports news site Herald.ie.

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Probendi owns an iWatch trademark in Europe and has been using the iWatch name for health and safety communication software. Di Salvo acknowledges the company's existing iWatch software product, but notes that "the name is easily associated with a smartwatch" when discussing the company's future plans.

It is unclear, however, how Di Salvo will be able to extend use of the iWatch name to a smartwatch, as the category protection for the company's trademark is somewhat limited within the computer software classification. Numerous other companies, including Apple, have filed for protection on the "iWatch" name in a variety of classifications and countries, something that may have contributed to Apple's decision to use the "Apple Watch" name for its product.

Speaking to RTE Radio, Di Salvo refused to comment on any potential discussions with Apple about the trademarked name, but did confirm that the company is in talks with Chinese manufacturers about producing a smartwatch device.

"We have been contacted by some very important manufacturers in China about the possibility of manufacturing a smartwatch and selling them with the name iWatch. Discussions are still ongoing. We are good at software but hardware is definitely not our business but we are evaluating this request," Mr Di Salvo said.

Di Salvo's iWatch will feature a square design, a touchscreen, GPS functionality, and an accelerometer. It reportedly will run the Android operating system, with support for fitness, health tracking and other apps. According to Bloomberg, Di Salvo is looking for manufacturers to assemble the device at a cost that is lower than the Apple Watch's $349 entry-level price.

Related Roundup: Apple Watch 10
Buyer's Guide: Apple Watch (Caution)

Just hours after publishing a blog post answering some questions about its upcoming CurrentC mobile payments system and touting the security of its cloud-based storage of sensitive information, the company behind the effort, Merchant Customer Exchange (MCX) has alerted users of unauthorized access to their email addresses.

Thank you for your interest in CurrentC. You are receiving this message because you are either a participant in our pilot program or requested information about CurrentC. Within the last 36 hours, we learned that unauthorized third parties obtained the e-mail addresses of some of you. Based on investigations conducted by MCX security personnel, only these e-mail addresses were involved and no other information.

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Details on the unauthorized access have not been disclosed, but iMore's Nick Arnott earlier this week took a look at some of the personal information being collected by MCX and CurrentC and noted that he could ping CurrentC's systems to look for valid registered email addresses on the system. While he did not find valid addresses, the system appeared capable of returning a substantial amount of personal information about such accounts.

Security has of course been one of the main selling points of Apple's new Apple Pay system, with data stored in a Secure Element on the device and payments authorized through Touch ID and tokenized account numbers being used instead of actual credit card numbers to process transactions.

Related Roundup: Apple Pay

Apple had the consumer in mind when it added a multi-carrier SIM card to its new iPads, said Apple vice president of iPhone, iPod and iOS product marketing Greg Joswiak in a recent Re/code interview (via Fierce Wireless). But that motivation does not mean the Apple SIM will be making its way to the iPhone any time soon, as Joswiak noted most consumers go directly to their carriers to buy iPhones, while the iPad more often is sold through Apple's retail channels.

"It's about the customer experience," he said during an appearance here at Re/code's Code/Mobile conference. "We ultimately don't know who you are going to use as the carrier, [and] we want to make it as easy as possible."

Joswiak said Apple has not discussed putting the Apple SIM into iPhones, but said that because of the way most customers buy an iPhone--through a carrier directly--the Apple SIM is not as well suited. "I don't think you're going to go to the Verizon store and say, 'Can you hook me up with AT&T?,'" he said.

With most iPhone customers committed to their carriers for a significant period of time, either through contracts subsidizing the phone cost or through payment plans, multi-carrier SIM cards make less sense for iPhones.

Apple's new universal SIM in theory allows customers to activate with one carrier and then switch to another carrier as needed, but there are some limitations. The Apple SIM is currently only compatible with AT&T, T-Mobile, Sprint and UK carrier EE. Verizon confirmed that is not adopting Apple's new SIM, instead requiring customers to activate with a Verizon-specific SIM.

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In addition, while AT&T is listed as a compatible carrier, the provider is not fully supporting all the features of the SIM. Apple and AT&T have confirmed the carrier is not allowing its customers to switch once the Apple SIM has been activated on AT&T's network, instead opting to lock the SIM to its network following activation. Customers who activate service on AT&T will thus have to purchase a new SIM if they want to use their tablet with another carrier.

Apple introduced the new iPad Air 2 and Retina iPad mini 3 earlier this month with sales beginning last week. Both tablets feature a universal SIM, Touch ID, and storage options of 16, 64 and 128GB. The iPad Air 2 also includes a new A8X processor, antireflective display and 2GB of RAM. The iPad Air 2 retails at a starting price of $499, while the iPad mini 3 costs $399 for the base model.

Related Roundups: iPad, iPad mini
Related Forums: iPad, iPhone

Much of the Apple news in recent days has centered around Apple Pay and what Tim Cook referred to on Monday as a "skirmish" in which several retailers backing a competing mobile payments initiative known as CurrentC have shut down NFC payment functionality in their stores to prevent customer use of Apple Pay, Google Wallet, and other similar services.

Numerous sources have indicated that retailers backing CurrentC are contractually prohibited from accepting alternative forms of mobile payments, and sources told The New York Times that retailers breaking those contracts would "face steep fines."

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Merchant Customer Exchange (MCX), the consortium of retailers backing CurrentC, has now published a blog post confirming that retailers working with MCX are indeed required to back CurrentC exclusively. While the group does not directly address whether consortium members could be fined for accepting Apple Pay, it does say members may leave the group without penalty if they so choose.

MCX merchants make their own decisions about what solutions they want to bring to their customers; the choice is theirs. When merchants choose to work with MCX, they choose to do so exclusively and we’re proud of the long list of merchants who have partnered with us. Importantly, if a merchant decides to stop working with MCX, there are no fines.

While the lack of a fine for leaving the consortium means retailers such as CVS and Rite Aid could still pull out of the CurrentC effort and begin accepting Apple Pay, retailers are undoubtedly reluctant to do so as they view CurrentC has a key effort to escape from credit card swipe fees while maintaining the ability to mine customer information. Many have also already invested significant amounts of money in the CurrentC effort, money that would be lost if they stopped working with MCX.

Beyond its arrangements with retailers, MCX also addresses the features of CurrentC in its blog post, highlighting the fact that it will work with any phone, integrate coupons and loyalty cards, support multiple forms of payment including gift cards, credit cards, and checking withdrawals.

Addressing user privacy, MCX highlights CurrentC's privacy dashboard that will allow customers to control what information is shared with retailers and argues that the system's cloud-based storage of sensitive customer information offers more security than on-device storage that could be more easily compromised through hacking or theft.

MCX's CurrentC program is currently in limited testing, and is expected to launch nationwide sometime next year.

Related Roundup: Apple Pay

Research firm Kantar WorldPanel has released a new report (via TechCrunch) highlighting global smartphone sales over the July-September period which saw the debut of the iPhone 6 and iPhone 6 Plus. The report found that Apple's market share in major European markets is now higher when compared to the prior-year-period that saw the debut of the iPhone 5s and iPhone 5c. However, Apple's share in countries like the United States and Japan were found to be lower when compared to the same timeframe last year.

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Our latest data covers the first few days of the iPhone 6 and iPhone 6 Plus being available in Europe and it is clear that demand has been high for the eagerly awaited new models. In Great Britain, where the new iPhone models started shipping on 19 September, Apple saw its sales share up by 1.7% compared with the same period last year, taking share of iOS to 31%. Across the major European markets, where the new iPhone models were made available between the 19 and 26 September, initial sales of the new iPhone models have overwhelmingly been from existing iPhone owners (87%).

Across Europe’s top five markets, the iPhone 6 has outsold the larger iPhone 6 Plus by five-to-one.

Apple's total market share in the U.S. hit 32.6% during September, which is down 3.3% from the 35.9% market share it held in the year-ago period. In Japan, Apple's market share reached 31.3% in September, which is down 15.9% when compared to the 47.2% market share it held during same time period last year.

In the US, market competition has been reinvigorated with LG and Motorola increasing their shares. The recently launched LG G3 and Motorola Moto X are better positioned to compete with flagship products from Samsung and HTC. Smartphones sales grew 35% over the past year in the US. Despite Apple’s share declining 3 percentage points in the three months ending in September, compared with the same period last year, it is clear that demand for the iPhone 6 has been very healthy.

While the iPhone continues to enjoy a steady market share throughout the world, it also continues to trail Android which holds a 70% or higher market share in many countries. In Italy, the iPhone holds the third most market share at 10.4%, which is behind Windows Phone's 15.2% market share and Android's 71.8% market share.

Related Forum: iPhone

After five and a half weeks of availability, Apple's iOS 8 operating system is now installed on 52 percent of iOS devices, according to new numbers posted on Apple's App Store support page for developers.

iOS 8's installation numbers have increased approximately four percent over the course of the two weeks, which means adoption numbers are on the rise after several weeks of stagnation. During Apple's October 16 iPad-centric event, Apple CEO Tim Cook said that iOS 8 was installed on 48 percent of devices as of October 13, and before that, the OS was installed on 46 percent of devices on September 21.

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The jump in iOS 8 installation numbers follows the October 20 release of iOS 8.1, which brought several new features that undoubtedly enticed iOS users to upgrade, including Apple Pay support, SMS Forwarding, Instant Hotspot, iCloud Photo Library beta access, and the return of the Camera Roll.

iOS 8.1 also addressed several notable bugs that had been present in the operating system for several weeks and that were the source of several user complaints about iOS 8. The update fixed Wi-Fi connection issues, Bluetooth problems, screen rotation bugs, and more.

Apple's own iOS 8 adoption estimates are based on App Store usage and are mirrored closely by data from MixPanel, which puts iOS 8 adoption at just over 54 percent. MixPanel's numbers suggest installation rates have been trending upwards since the release of iOS 8.1.

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iOS 8's release was plagued with a number of early bugs that may have scared users away from updating. Ahead of launch, all HealthKit-enabled apps were pulled from the App Store due to a major HealthKit bug, and the fix for that issue, iOS 8.0.1, brought its own bugs, disabling cellular service and Touch ID for thousands of iPhone 6 and 6 Plus users.

iOS 8.0.2 fixed the problems introduced with iOS 8.0.1 and brought several other bug fixes, and with iOS 8.1 fixing even more issues with iOS 8, the operating system is far more stable now than it was in the days following its release.

Related Forum: iOS 8

Apple's VP of iPhone marketing, Greg Joswiak, sat down for an interview with Re/code's Ina Fried and Walt Mossberg this afternoon, discussing iPhone 6 and 6 Plus supply, the flawed iOS 8.0.1 update, Apple Pay, and the Apple Watch.

According to Joswiak, the major iOS 8.0.1 bug that caused many iPhone 6 and 6 Plus users to lose access to both cellular service and Touch ID was caused by the software distribution rather than a flaw in the software. "It wasn't the software itself, it was the way it was distributed, said Joswiak. "We're very sorry."

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The iOS 8.0.1 bug surfaced shortly after the software was first released, bricking many iPhone 6 and 6 devices. Apple pulled the update a few hours later, directed users to downgrade to iOS 8, and released iOS 8.0.2 to fix the problem the next day.

On the iPhone 6 and 6 Plus, Joswiak echoed a statement made by Tim Cook during Apple's recent earnings call, saying that while he's not sure which iPhone had higher demand, Apple is selling everything that it makes. According to Joswiak, Apple's goal isn't to sell the most iPhones, but to provide a better experience.

Repeating much of what Tim Cook had to say on Apple Pay and the situation with Rite Aid/CVS, Joswiak commented that retailers aiming to be successful will accept the way customers want to pay. He went on to state that Apple is focused on improving mobile payments for consumers, minimizing the amount of personal data shared and keeping that data safe from hackers.

Some of Joswiak's final comments were on the Apple Watch. When Mossberg implied that the Apple Watch could cost thousands of dollars, Joswiak told the audience that a wider price range allows customers to choose the best option for them.

Update: Re/code has uploaded an excerpt video from Joswiak's interview.

Back in January, we highlighted graphics issues being experienced by a number of owners of 2011 15-inch and 17-inch MacBook Pro models, with many users needing to pay for (sometimes multiple) expensive logic board replacements due to the issue. The apparent widespread nature of the issue has led to claims that it is a manufacturing defect that should be covered by Apple, with a change.org petition seeking relief from Apple now exceeding 20,000 signatures and affected users organizing in a Facebook group of over 5,000 members.

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We noted in August that law firm Whitfield Bryson & Mason LLP had begun researching the issue, soliciting feedback from affected users to determine whether a class action lawsuit against Apple might be warranted. The firm apparently found sufficient reason to proceed as it has announced today that it has indeed filed suit against Apple on behalf of affected consumers.

Our firm recently filed a class-action lawsuit in a California federal court against Apple, Inc. on behalf of residents in the States of California and Florida who purchased 2011 MacBook Pro Laptops with AMD GPUs who experienced graphical distortions and system failures.

The firm is continuing to solicit feedback from affected users and is considering filing actions in other jurisdictions around the country.

The lawsuit lays out the plaintiffs' argument that the issues stem from hardware defects related to the lead-free solder used on the AMD graphics chips in the 2011 MacBook Pro models.

When the lead-free solder cracks it degrades the data flow between the GPU and the logic board. A small crack can cause the laptop’s graphics to become distorted on occasion. But as cracks in the lead-free solder propagate over time, the graphics issues worsen and system stability decreases, until eventually the computer is completely unusable. This defect related to the lead-free solder connecting the GPU to the logic board (the “Graphics Defect”) limits all computers at the point of sale forward from performing as advertised and warranted.

The suit goes on to note that Apple's only solution offered for the issue is complete logic board replacement, but that the remedy is ineffective as replacement parts use the same solder and fail in the same way, sometimes within days. Apple has also in many cases charged consumers for the repairs and has refused requests to reimburse consumers for repairs paid for out of pocket.

Drawing parallels to similar graphics issues in the 2008 MacBook Pro that ultimately resulted in a recall by Apple, the plaintiffs in this case request that Apple acknowledge a defect in the 2011 MacBook Pro models, notify owners of the issue, bear the costs of inspection of affected machines, and pay the full costs of repairs and damages. The suit also requests that users who have paid out of pocket for repairs be reimbursed for their expenses.

Related Roundup: MacBook Pro

The Federal Trade Commission (FTC) of the United States today filed a federal court complaint against AT&T, accusing the carrier of misleading its smartphone customers by charging them for unlimited data while reducing their data speeds by up to 90 percent.

According to the FTC, AT&T did not adequately explain to customers with unlimited data plans that they would be throttled if they reached a certain amount of data during a billing cycle. AT&T also did not inform customers of the throttling when they renewed their unlimited contracts.

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"AT&T promised its customers 'unlimited' data, and in many instances, it has failed to deliver on that promise," said FTC Chairwoman Edith Ramirez. "The issue here is simple: 'unlimited' means unlimited."

AT&T ceased offering unlimited data plans to customers several years ago, but has allowed Grandfathered customers to retain those plans. AT&T implemented throttling shortly after eliminating its unlimited data plans, initially restricting throttling to only its highest usage customers but later capping data for everyone on an unlimited plan. Currently, customers on unlimited plans are able to use 5GB of LTE data or 3GB of 3G data, after which AT&T throttles their data speeds.

The FTC alleges that AT&T throttled customers who had used as little as 2GB of data beginning in 2011, and that the throttling is severe, "resulting in speed reductions of 80 to 90 percent for affected users." AT&T is said to have throttled 3.5 million customers more than 25 million times, violating the FTC Act in the process.

Update 11:15 AM PT: AT&T has given a statement to MacRumors in response to the FTC's "baffling" complaint, stating that the allegations are "baseless" and that it has been "completely transparent" with customers.

"The FTC's allegations are baseless and have nothing to do with the substance of our network management program. It's baffling as to why the FTC would choose to take this action against a company that, like all major wireless providers, manages its network resources to provide the best possible service to all customers, and does it in a way that is fully transparent and consistent with the law and our contracts.

"We have been completely transparent with customers since the very beginning. We informed all unlimited data-plan customers via bill notices and a national press release that resulted in nearly 2,000 news stories, well before the program was implemented. In addition, this program has affected only about 3% of our customers, and before any customer is affected, they are also notified by text message."

Taco Bell today launched a newly updated Live Mas Taco Bell mobile app that's designed to allow Taco Bell diners to place and customize their orders ahead of their arrival at the restaurant. After downloading the app, those seeking a Cheesy Gordita Crunch, Doritos Locos Tacos Supreme, or other food item from Taco Bell can tap log in or start a session as a guest.

From there, tapping on the "Order" button will bring up a list of all the Taco Bell restaurants that are located nearby, and selecting one will bring up a store's individual menu. After selecting a location, scrolling downwards will provide a list of food options that have been organized into separate categories like Breakfast, Combos, Tacos, Burritos, and more.

Taco Bell(R) Mobile Ordering is Here. Customize. Order. Pay. All from the new app. Now you can easily select a local Taco Bell, customize your favorite items and pay for your order. No need to select a pick-up time. We make your food when you arrive because just-prepared food is the best. Then skip the in-store line like you own the place. Plus, reordering your favorites is as easy as a twist of the wrist.

Every food order contains customization options so that it can be prepared to a customer's specification. For example, with the Waffle, it comes with sausage, cheese, egg, and syrup, any of which can be removed. There's also an option to add extra of any ingredient, and there are options for add-ons like nacho cheese sauce, sour cream, onions, tomatoes, and more. While some options are free, many add an additional cost to an order.

According to Taco Bell, while an order can be placed ahead of time, it is not cooked until a customer arrives at the restaurant they selected and checks in, at which point the employees begin preparing the meal to ensure freshness. Mobile orderers will not need to stand in the Taco Bell line upon arrival, and will be called up to the mobile counter when their meal is ready. Payments are made in the app with a credit card.

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The app has options to allow users to sign in to track their most recent orders, which makes re-ordering the same meal easy, and there are e-gift options that let customers send gift cards. Another helpful feature is the Nutritional Info, which lists the calorie content of all of Taco Bell's offerings.

Taco Bell has been working on adding mobile ordering capabilities to its app for several months now, with the first news of an updated app coming back in February. At that time, Taco Bell's mobile lead Jeff Jenkins said that mobile is becoming increasingly important to quick service restaurants. "If you can get 10 million people to download your app, you're putting a portal to Taco Bell in 10 million pockets," he said.

Taco Bell's revamped iOS app can be downloaded from the App Store for free. [Direct Link]

As it always does with Apple's major new iOS devices, research firm IHS iSuppli has torn down the new iPad Air 2 in an attempt to estimate Apple's component costs for the device (via Re/code). According to IHS iSuppli's estimates, the 16 GB iPad Air 2 costs Apple roughly $275 to build, just one dollar more than last year's iPad Air.

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The report unsurprisingly points out that Apple benefits from stronger profit margins as users move to higher capacity models, with Apple paying only about $50 more for 128 GB of storage compared to the base 16 GB configuration while charging users $200 for the upgrade. Still, Apple's move to eliminate the 32 GB option and slide the 64 GB and 128 GB models down $100 has slightly eroded Apple's profit margins at the top end.

The latest report from the research firm IHS, due later today and shared exclusively with Re/code, shows that the base model of the iPad Air 2, the 16-GB Wi-Fi version, which sells for a price of $499, costs $275 to build, exactly one dollar higher than the previous base model. The top-end model, the 128-GB LTE version costs which sells for $829 costs $358.

Apple’s implied profit margin on the iPad Air 2 has dropped slightly to a range for 45 percent to 57 percent depending on the device, compared with the original at 45 percent to 61 percent.

Many of the components have remained the same between the iPad Air and the iPad Air 2, with Apple's use of essentially the same display unit allowing the company to reduce costs of that component from $90 to $77. But with Apple's move to bond the display to the device's cover glass and the addition of a new antireflective coating, the same display offers a significantly better user experience.

Other changes include the move to a powerful new A8X chip currently unique to the iPad Air 2, and improved cameras that have resulted in slightly higher component costs.

As always, it is important to note the estimates from IHS iSuppli cover only the cost of the individual components that make up the device and do not include other costs involved in product development, manufacturing, and sales, such as research and development, software, patent licenses, marketing, and distribution expenditures. All of these costs contribute to significantly reduce Apple's true profit margin from the levels cited by IHS, but the basic component cost remains an interesting glimpse at how Apple brings everything together to consistently hit its retail pricing goals.

Related Roundup: iPad
Buyer's Guide: iPad (Buy Now)
Related Forum: iPad

Following yesterday's leak of several screenshots from the next version of Microsoft's Outlook for Mac, Chinese site cnBeta now shares much more information [Google Translate] about the upcoming version of Microsoft's productivity suite for Mac.

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The report shares several presentation slides outlining some of the features of the next Office for Mac, as well as a timeline showing a planned release sometime in the first half of 2015. Microsoft team members had previously suggested the suite would launch this year.

The slides point to four key focus areas for Microsoft during the development cycle of the next Office for Mac, including a modernized look with full Retina support to match the OS X aesthetic while still aligning the experience with Office for Windows, improved connectivity with cloud services including Office 365 and SkyDrive (OneDrive), significant improvements to Outlook, and the addition of OneNote, which appeared as a standalone release earlier this year.

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(Click for larger)

Taking a quick look at some of the changes to the core Office apps, the slides address the addition of the Quick Access Toolbar from the Windows version throughout the upcoming Mac suite, improved organization of tools and formatting, new support for Excel 2013 functions, Threaded Comments and improved Presenter View for PowerPoint, and enhanced Reply Comments and "Expand and Collapse" paragraph view toggles in Word.

Microsoft Office for Mac has not seen a major update since late 2010, when Office for Mac 2011 was released as a comparable version of Office 2010 for Windows. But while Windows saw the release of Office 2013 early last year, no corresponding version of Office for Mac has yet been released. The next version of Office for Windows is similarly expected in the spring of next year.

In yet another addition to the growing stable of channels available on the Apple TV, A&E's Fyi network and Hallmark's streaming family movie channel Feeln have been added to the set-top box today.

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As with many other channels, Fyi offers some free content, but complete access to streaming on-demand episodes requires authentication with a participating cable provider. The television, which launched as a rebranding of The Biography Channel earlier this year, focuses on "contemporary lifestyle" topics.

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Feeln's subscription service is priced at $4.99 per month with a one-week free trial or $47.99 per year with a one-month free trial. The service offers reasonable library of family-friend movies for streaming, including some box office hits, Hallmark originals, and original shorts.

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Related Roundup: Apple TV
Buyer's Guide: Apple TV (Don't Buy)

Longtime Apple-exclusive developer Algoriddim has made a name for itself with its popular djay app that first found success on the Mac before moving to iPad and eventually iPhone. The app has been featured prominently by Apple over the years, winning an Apple Design Award in 2011 for the original iPad version, and just this month it was featured as a key music app in promotional materials for the new iPad Air 2.

So after such a long tenure and significant success on OS X and iOS, we were interested to learn that Algoriddim is announcing today an expansion to Android, bringing the full djay experience to that platform. While Algoriddim is by no means the first iOS developer to branch out to Android, it is a high-profile, award-winning one and so we chatted a bit with Algoriddim CEO Karim Morsy to find out more about the how and why of the company's move, a perspective not frequently shared at MacRumors.

Morsy pointed out that with, or perhaps despite, 15 million downloads on iOS, the number one request from djay users has long been an Android version of the app. With a strong presence on the Mac platform as well, Algoriddim found plenty of Mac and/or iPad users who use Android phones and have been asking Algoriddim in large numbers to bring the app to their phones.

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Rather than a simple port of the iOS version of djay, Algoriddim built the Android version of the app from the ground up, replicating the look and feel of the iOS version wherever possible while bringing feature and performance parity, something that was not always a given considering the pace with which proper tools and frameworks for Android were becoming available. But with the release of Android 4.0 three years ago, Algoriddim finally felt the tools were in place to pursue bringing djay to Android.

Morsy expected development to be challenging, and indeed it was, particularly ensuring that djay worked well across the variety of devices running Android, with the diversity of screen sizes and performance-related specs requiring significant amounts of work to optimize for.


We also asked Morsy whether Algoriddim is expecting any backlash from Apple with the expansion of djay to Android, given that Apple likes to tout apps and other content that is exclusive to its own platforms. But Morsy noted that Apple regularly features apps available across multiple platforms and that the history and continued popularity of djay on Mac and iOS is likely to remain a strong factor as Apple weighs future feature opportunities for the music segment.

As was added to djay 2 for iOS earlier this year, djay 2 for Android brings full integration with Spotify's premium music subscription service, including auto-matching of tracks using technology from The Echo Nest, which was acquired by Spotify in March of this year. The Android version of djay 2 launches today at a limited-time introductory price of $2.99, and users will also receive a free one-week trial of Spotify Premium to test out the service with djay.