MacRumors

KGI Securities analyst Ming-Chi Kuo, who has a respectable track record at reporting on Apple's upcoming product plans, has issued a research note to clients that claims Apple will announce its next iPhones in August ahead of a September launch.

Apple has never unveiled an iPhone in August, having introduced early iPhone models at or around WWDC in June, the iPhone 4s in October 2011 and all subsequent iPhone models in September. It is worth noting that Kuo has sometimes been off with his launch timing predictions in the past.

The research note, a copy of which was first obtained by The China Post, also claims that Foxconn is expected to secure between 60% to 70% of orders to assemble the new iPhones. Kuo notes that Foxconn has a higher yield rate for iPhones, helping it secure the majority of orders, and adds that the Taiwanese manufacturing company will also serve as the sole assembler of the much-rumored 12.9-inch iPad.

Kuo previously predicted that the main selling point of the next iPhones will be Force Touch, the pressure-sensitive display technology built into Apple Watch and new MacBook trackpads. His other predicted features for the next iPhones, many of which have already been rumored, include an A9 processor with 2GB of RAM, improved 12-megapixel camera, a new Rose Gold color option, improved Touch ID recognition, gesture control support, a new microphone added near the speaker and more.

Apple has updated its system status page to reflect ongoing issues with eleven iCloud-related services: Back to My Mac, Documents in the Cloud, iCloud Account & Sign In, iCloud Backup, iCloud Drive, iCloud Keychain, iCloud Mail, iMovie Theater, iWork for iCloud Beta, Photos and Find My iPhone, iPad, iPod touch and Mac. The services have been affected since around 12 AM Pacific.

Multiple users have turned to Twitter and the MacRumors discussion forums to confirm the issues, which range from services running slow for some users to being down entirely for others. The issues follow a prolonged iTunes and App Store outage in early March and lengthy iTunes Connect and TestFlight downtime for developers earlier this month.

Update 7:05 AM Pacific: Apple's services are now restored per its system status page.

In its retail stores, Apple uses special Apple Watch display units to allow customers to test the Apple Watch ahead of making a purchase. The units, which have been available in stores since try-on appointments began on April 10, combine a functional Apple Watch (secured to prevent theft) with an iPad mini that gives details on various aspects of the device.

Most of us probably haven't stopped to wonder about how these units work, but new Brazilian regulatory documents and images shared by Blog do iPhone [Google Translate] give us a fascinating inside look at how Apple engineered the display units.

According to BlogdoiPhone, Apple Watches inside the display cases have special bands that incorporate a Lightning cable, which plug into the case to connect to the iPad. When an app is opened on the Apple Watch, this connection relays data to the iPad on what's being viewed, letting the screen display additional information about each feature.

The specialized Lightning port band connects to the hidden 6-pin diagnostic port on the Apple Watch, using it to establish a connection between the watch and the case. It is not clear if the diagnostic port connection also allows the Apple Watch to charge, either through the iPad or through a battery built into the unit, but such a function would explain how the Apple Watches manage to stay powered through a full day of continual usage by customers.

One side of the unit also includes a USB-Type C port or a Lightning port, which we have previously heard is used to charge the entire unit on a nightly basis, so it's possible there's a built-in battery that powers both the iPad display and the Apple Watch during the day.

It is not known if the Apple Watches used in the display units are identical to retail Apple Watches aside from the bands or if they are custom built with extra functionality, but there has been speculation that the Apple Watch can charge through the diagnostic port. Specifically, the engineers behind the Reserve Strap accessory in the works for the Apple Watch have said they have confirmed the port can be used for charging.

Apple recently introduced band design guidelines for third-party accessory manufacturers, and while the guidelines say bands must not integrate magnetic chargers, there's no mention of the diagnostic port, leaving its full capabilities largely a mystery. On watches delivered to consumers, the 6-pin diagnostic port is hidden behind a cover that resembles the SIM slot on an iPhone 6.

The Brazilian Agency of Telecommunications (or Anatel), where the documents and images originated, has approved the Apple Watch and the in-store display units, suggesting Apple is gearing up to begin selling the Apple Watch in additional countries in the near future.

Apple's Beats Music and iTunes Radio streaming services are available in a limited number of countries, but Apple is working on launching its upcoming music service in a number of countries around the world. Previous rumors have suggested Apple's upcoming music service will launch in multiple countries when it debuts in June, and a new report from Billboard confirms that Apple is seeking to establish deals in Russia.

According to Russian newspapers, leading Russian record labels have hinted at the negotiations and have suggested that Russia will be among the first countries where the new music service will launch. Apple is said to be working on deals with local labels that would expand its digital rights to streaming services. Currently, Russian iTunes users have access to music, movies, apps, and books through iTunes, as well as iTunes Match.

Beats Music is only available in the United States, while iTunes Radio is available in Australia and the United States. When iTunes Radio launched in 2013, Apple promised to bring it to additional countries, with iTunes chief Eddy Cue saying a worldwide launch for iTunes Radio was a "top priority" and service was planned for "more than 100 countries."

It is not clear why Apple's iTunes Radio expansion plans fell through, but the intricacies of establishing contracts in many countries around the world likely played a part, as did iTunes Radio's lukewarm reception.

iTunes Radio is set to receive a major revamp alongside Beats Music, and while today's report doesn't state whether or not the Russian negotiations cover content for both streaming services, previous rumors have suggested that the new version of iTunes Radio, like the new streaming music service, will launch in multiple countries around the world.

The new version of iTunes Radio may feature improved curation and exclusive radio shows hosted by notable DJs. Apple hired BBC Radio DJ Zane Lowe earlier this year, along with a handful of other radio content producers. Exact details on Apple's new iTunes Radio service are not known, but Apple may attempt to make the service more palatable to users through better tailoring towards regional markets.

As for the upcoming streaming music service, it's rumored to be similar to the existing Beats Music service, with a focus on curated content and artist exclusives. While iTunes Radio will remain free, the new Beats-based streaming service will reportedly cost $9.99 per month.

Both the revamped iTunes Radio and the new streaming music service may debut in June, at Apple's Worldwide Developers Conference, and both will be integrated into Apple's redesigned music app, introduced with iOS 8.4.

Apple is planning a new "Home" app that would enable users to wirelessly discover, securely manage and control HomeKit-based accessories using an iOS device, according to 9to5Mac. The report also reiterates that the Apple TV would serve as a hub for all HomeKit connected devices.

The report claims that Home could be introduced alongside iOS 9 at Apple's upcoming Worldwide Developers Conference in San Francisco next month, although the app may not be finalized in time and could remain limited to internal usage by employees only.

HomeKit was announced at WWDC last year as a software framework for communicating with and controlling connected devices in the home, but the home automation platform has experienced delays since then and has yet to officially launch. Fortune reported last week that HomeKit was pushed back until August or September, but Apple has since confirmed that accessory announcements will begin in June.

The rumored Home app would be the front-end platform for HomeKit, akin to the Health app and HealthKit on iOS 8, and reportedly has "fairly basic" functionality centered upon virtual rooms, the Apple TV and other features:

Wirelessly discovering and setting up compatible HomeKit devices

Creating a virtual representation of rooms in the home to easily organize and connect HomeKit devices

Utilizing the Apple TV as a hub connecting all of the HomeKit devices

Offering a series of screens to help users find new HomeKit devices and apps

If the Home app is not released, the report claims that Apple may elect for customers to control their HomeKit connected devices using Siri and accompanying App Store apps from accessory makers and developers. HomeKit partners confirmed to date, among others, include Belkin, Elgato, Schlage, iDevices and GE.

Three weeks ahead of the rumored debut of Apple's new streaming music service, Spotify has announced some feature additions to its own streaming service, with a major focus on curated content and original tracks, plus an expansion into entertainment with video and news clips.

Spotify is introducing a new "Now" start page that offers mood-based music playlists to users, much like Beats Music's "The Sentence," which provides users with curated music options to fit different moods and scenarios. Spotify's "Now" music feature will include curated song selections and its recommendations adapt over time to fit an individual user's tastes.

Another new feature, Spotify Running, focuses on original music. It combines "running compositions written by the world's foremost DJs and composers" with song recommendations based on user listening history and multiple-genre playlists. It matches tempo when running and will be integrated into the Nike+ and Runkeeper apps.

Other original (and exclusive) content will include radio shows presented by various artists like Icona Pop and Jungle, and "Dance Move of the Day" from Amy Poehler's Smart Girls brand.

The biggest addition to Spotify comes in the form of video and news clips, letting users watch videos, listen to podcasts, and get news updates. This entertainment content will come from ABC, BBC, Comedy Central, Condé Nast, ESPN, Fusion, Maker Studios, NBC, TED, and Vice Media.

Spotify's push for more original content and its renewed focus on curated content mirrors some of what Apple is rumored to be doing with its upcoming Beats Music revamp. Beats Music is well-known for its human-curated content, which Apple will keep in the new service, and Apple may be introducing its own radio shows as well, possibly in a simultaneous iTunes Radio revamp.

Apple is also rumored to be pushing for exclusive content from artists for its new music service, to set it apart from competing services. Some of this may come in the form of artist social networking pages built into the new music service, which will allow artists to share clips, videos, concert updates, and more.

Spotify's new "Now" experience will begin rolling out to iPhone users today in the U.S., U.K., Germany, and Sweden. Spotify Running is also rolling out to iPhone users globally as of today.

Though iOS 9 and OS X 10.11 are set to debut in three weeks at Apple's Worldwide Developers Conference, we've heard little detail on the content Apple might include in the new operating system updates. Neither operating system is expected to get a major visual overhaul, but there may be one significant design change for both iOS and OS X -- a new system font.

Apple has plans to use the new San Francisco font that was introduced with the Apple Watch to replace the Helvetica Neue font used in iOS 7/iOS 8 and OS X Yosemite, according to a report from 9to5Mac. The font will be used for menu items, app names, and more, throughout the operating systems.

Ever since switching to particularly thin weights of Helvetica Neue in iOS 7, Apple has been chastised for using a font that emphasizes clean lines over readability, and San Francisco is intended to solve this. According to the sources familiar with the decision to move to the San Francisco type face on iOS and OS X, Apple higher-ups also believe that the new look will serve to refresh its familiar operating systems, helping iOS and OS X to avoid becoming stale. However, some Apple engineers have told us that they are not fans of the new font, which may look particularly rough on non-Retina screens.

A condensed sans-serif that's not unlike Helvetica, San Francisco is the first new font Apple has designed in-house in many years. In the 80s and 90s, Apple used several fonts that were created in-house, but the company largely ceased making its own fonts in the early 1990s. Apple's early fonts were also named after major cities, so San Francisco pays homage to those first fonts.

Chicago, New York, Geneva, Monaco, and Cairo are all fonts that were designed by early Apple graphic artist Susan Kare. Kare even designed her own font called San Francisco in 1984, but that now-obsolete typeface looked quite different than the San Francisco Apple introduced in 2014.

San Francisco was created specifically for small displays like the Apple Watch, with extra spacing between each letter to increase legibility on the wrist. Since its debut, there has been speculation that it could be brought to iPhones and Macs in the future, due to its clean look on larger Retina displays in addition to the small display of the Apple Watch. That idea was further reinforced with the introduction of the Retina MacBook, which uses the San Francisco font for the lettering on the keyboard.

We may get our first official glimpse of San Francisco as a system-wide iOS and OS X font on June 8, when Apple is expected to show off iOS 9 and OS X 10.11 for the first time. Not much else is known about the two operating systems, but Apple may be opting to focus more on internal upgrades, improvements, and bug fixes over external changes to further polish features introduced with iOS 8 and OS X Yosemite.

KGI Securities analyst Ming-Chi Kuo issued a note to investors today that claims Apple Watch demand may be slowing down, resulting in shipment forecasts being revised down by 20% to 30% to 5-6 million units in the third quarter.

Kuo expects total Apple Watch shipments to fall within the 15 million range for the 2015 fiscal year, lower than the consensus of 20-30 million units, but remains upbeat about the Apple Watch and long-term wearable trends.

KGI Securities conducted a survey that reveals most Apple Watch orders are scheduled to ship in June, and concludes that 2Q15 production output is likely sufficient for the orders placed so far. Kuo also notes that over 80% of orders are for larger 42mm models, implying a male-dominated customer mix based on the assumption that 42mm and 38mm watches are mainly purchased by men and women respectively.

"We have learned that 42mm Apple Watch accounts for 60-70% of production. However, the shipping times of 38mm models are generally earlier than those of 42mm. We believe this is because demand for 38mm watches is significantly below that of 42mm ones. We estimate that 42mm models account for over 80% of sales. Assuming that 42mm and 38mm watches are mainly purchased by men and women respectively, the Apple Watch has attracted mostly men."

Kuo concludes that the Apple Watch, like the original iPhone, has potential albeit several areas that could be improved. In particular, he says the Apple Watch has a lack of killer apps, not a very useful Digital Crown, insufficient battery life, room for form factor improvement, sometimes sluggish processing and response times and iPhone dependance for most settings and internet access.

Apple is considering a major corporate office expansion in northern San Jose, California, according to the Silicon Valley Business Journal. The report claims that Apple is shopping at least two properties that it could lease in the city: Ellis Partners' 296,000-square-foot 101 Tech R&D building along Orchard Parkway and the 1.5-million-square-foot Coleman Highline development site near the Mineta San Jose International Airport.

With limited real estate options remaining in its Cupertino, California hometown, Apple has expanded to nearby Santa Clara and Sunnyvale in recent years. But with a growing demand for additional office space, beyond its existing One Infinite Loop and upcoming Campus 2 headquarters in Cupertino, the company could soon make its first big splash in San Jose, the largest city in Silicon Valley.

"If Apple does do some kind of expansion into North San Jose, it may have more to do with simple availability than anything else given the lack of building sites closer to Apple’s home," the report claims. "That’s not necessarily a bad thing, but simply the path of progress. And San Jose could finally be in the middle of it."

The report claims that some other companies including Tesla have shown interest in the real estate properties, and notes that it is possible the company does not sign a deal in the end. San Jose is home to a number of large technology companies, including Adobe, Cisco, eBay and IBM, but the city has failed to attract heavyweights such as Facebook, Google and LinkedIn. Roughly 25% of Apple employees live in San Jose per a 2013 economic impact study prepared for Apple.

Apple today added several iPad Air 2 models to its online store for refurbished products, marking the first time refurbished versions of the iPad Air 2 have been made available for purchase.

Released in October of 2014, the iPad Air 2 features a slimmer body than the original iPad Air, plus a triple-core A8X processor, an 8-megapixel camera Touch ID, and a gapless display with an anti-reflective screen coating.

Apple is currently offering several refurbished iPad Air 2 models, ranging from the entry-level 16GB Wi-Fi only iPad Air 2 to the 128GB Wi-Fi + Cellular iPad Air 2. All models are discounted by 15 to 17 percent, dropping prices by $80 to $160. For the entry-level Wi-Fi only 16GB model, the discount lowers the price to $419 from the original $499 price tag.

That price point beats many sale prices from third-party vendors, and as with all of Apple's refurbished products, the iPad Air 2 models come with a full 1-year warranty, a new battery, and a new outer shell.

Apple's refurbished inventory fluctuates on a regular basis based on available supply, so models that are available today may not be available tomorrow. The refurbished iPad Air 2 models can be purchased immediately from the online store.

(Thanks, Phil!)