MacRumors

During an internal town hall event earlier this week, Microsoft CEO Steve Ballmer and COO Kevin Turner spoke to employees about the recent $900 million writedown the company took for the Surface RT, reports The Verge.

"We built a few more devices than we could sell," said Ballmer, in reference to slow Surface RT sales. Ballmer also went on to say that the company isn’t happy with its Windows sales, either. "We're not selling as many Windows devices as we want to."

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Microsoft has been heavily marketing the Surface RT as an iPad competitor in a series of negative advertisements that highlight the Surface RT’s multitasking capabilities, its accessories, and its low price.

Earlier this month, Microsoft was forced to drop the price of its Surface RT tablets by $150, making the base price for the 32 GB tablet just $349, or $449 with a Touch Cover included. Despite the slow sales of the Surface RT, Microsoft is pushing ahead with plans for a second generation tablet.

Peter OppenheimerApple CFO Peter Oppenheimer sold 37,172 shares of Apple stock on Wednesday as part of a SEC Rule 10b5-1 scheduled trading plan implemented in November of 2011. The sale was disclosed in a filing with the SEC.

The sale took place the day after Apple's July earnings announcement, a profitable choice for Oppenheimer as Apple's stock jumped from $420/share to $440/share following the earnings release. The sale was executed at an average share price of $440.31.

The shares were acquired by Oppenheimer in June as part of a bonus award originally granted in November 2011.

Oppenheimer remains in possession of 4,834 shares currently worth $2.1 million. As of earlier this year, Apple executives -- other than Tim Cook -- are required to hold three times their annual base salary in Apple stock. Oppenheimer's base pay is $800,000 per year, meaning he would be required to hold $2.4 million in stock, though because of variances in Apple's stock price, Oppenheimer is likely still complying with the new requirements.

The transaction was made in accordance with SEC Rule 10b5-1, which means the executive notified the SEC of a plan to sell shares months ahead of the sale to avoid any accusations of insider trading.

In addition to its main office in Cupertino, Apple maintains a number of satellite offices in different cities in the United States. One such office is located in Boston, and according to industry sources that spoke to Xconomy (via 9to5Mac) Apple’s Boston team specializes in speech technology and may be working on Siri improvements.

Based on their online job profiles, we can say that members of the Apple speech team here are working on Siri, the company's voice-activated virtual assistant. Details beyond that are hard to come by, however, even for others in the field.

"They won't tell us what they're doing," says Jim Glass, who heads MIT's Spoken Language Systems Group. “We can only guess.”

Apple's Boston team is said to be made up of employees that formerly worked at VoiceSignal Technologies, a speech software company that was purchased in 2007 by Apple partner Nuance.
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Multiple members of the team worked at Nuance before moving onto Apple, including Gunnar Evermann, Larry Gillick, and Don McAllaster. Gillick, a former vice president of research at Nuance, lists his job as "Chief Speech Scientist, Siri at Apple," while McAllaster calls himself a "Senior Research Scientist" at the company.

While it is unclear just what the Boston Siri team is working on, Xconomy speculates that Apple could potentially be working on a Siri solution that moves away from Nuance, the technology that currently powers the personal assistant.

It would not be out of the question for Apple to aim for improved Siri software using its own in-house technology. The company has made moves to be more autonomous over the past few years, most recently switching to in-house mapping with iOS 6 rather than continuing to rely on Google Maps. Both former Apple CEO Steve Jobs and current Apple CEO Tim Cook have emphasized the importance of owning technology. "In the business we're in, own the technology," said Cook in an interview. "Steve was laser focused on that and that's ingrained in us."

Though it is possible that Apple is working on its own in-house voice recognition solution, the team could also be seeking to improve the integration of Nuance's technology into Siri. Apple could also be working on new developer APIs to better integrate Siri with existing iOS apps.

Apple has been working hard to improve Siri since the software's debut in 2011. With iOS 6, Siri gained the ability to provide sports scores, make reservations, launch apps, and locate movie listings. In iOS 7, Siri will see further improvements, including speed enhancements, better pronunciation, and new voices.

A picture posted on the Chinese microblogging site Weibo appears to show the rear of an assembled low-cost iPhone, complete with the required legal notices from the FCC and other agencies. The image was noticed by Dutch Apple site iPhone5Skopen.com [Google Translate].

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The unit shown appears to be almost identical to the rear shell that was leaked a few days ago, though this is one of the first leaks to include legal notices on the back.

As expected, the phone appears to include a rear camera with single flash -- leaks of the new iPhone 5S have suggested a dual-flash system -- as well as similar Lightning and headphone jack locations to the existing iPhone 5.

Because of the angle of the photo, is it impossible to tell if it is an assembled phone or just the rear plate. However, it looks very similar to other reported leaks. At a minimum, there is a good chance that these parts offer a good representation of what Apple's lower-cost iPhone will look like.

KGI Securities analyst Ming-Chi Kuo, who has a solid track record, predicted earlier this week that the low-cost iPhone would ship in early September.

Thanks Arjan!

Related Forum: iPhone

MacRumors attended a promotional screening of "JOBS" in San Francisco last night, where Ashton Kutcher and director Joshua Michael Stern held a question and answer session that covered a variety of topics on the production of the movie. Kutcher, for the most part, expanded on the ways that he slipped into the role of Jobs, and pontificated on what loyalty might have meant to the former CEO.

While Kutcher has made a number of appearances to promote the movie, speaking multiple times about his preparation for the role of Steve Jobs, he shared a few new details last night.

Open Road Films Q&A for JOBS Release
Kutcher explained the physical demands of the role, which included the mastering of the Steve Jobs walk over the course of the three months that he prepared for the part. Kutcher attributed Jobs’ walk to his penchant for bare feet, which contributed to his odd lope. He suggested Jobs probably stubbed his toes fairly often, causing the unique gait where he picked up his feet while walking.

Kutcher also noted that he went as far as studying the same books and artists that Jobs once did in order to get into the right mind frame and learn his aesthetic taste. Throughout the interview, it was clear that Kutcher had a great respect for Jobs, and he mentioned that he deeply regretted forgoing a chance to meet Jobs just months before he passed away. “I loved a man I never knew,” he said.

Open Road Films Q&A for JOBS Release
When an audience member asked Kutcher how he thought that Jobs would define loyalty, Kutcher initially declined to answer, but went on to discuss Jobs’ relationship with some of the earliest Apple employees, including Daniel Kottke, who was not awarded Apple stock.

“I think Steve was extraordinarily loyal to people he felt were loyal to him. And I don’t think that he had a historical relationship in his life that he felt that - that he trusted other people’s loyalty so I think he was sparing with his.”

Director Joshua Michael Stern also shared his thoughts on the question, explaining that someone had told him that Jobs was not a sentimental person. According to Stern, sentimentality draws from the past and Jobs didn’t live in the past–he was always looking towards the future.

“So I think that he would define loyalty in a very different way. He’d probably get defensive if you’d ask because his loyalty had probably been questioned so often in his life. But I think that he was loyal to his vision and he was loyal to the one thing he wanted to bring to the world … I think he was loyal to what he was trying to achieve. If you were loyal to that too then he loved you and if you didn’t then you didn’t understand him.”

The JOBS movie, starring Ashton Kutcher and Josh Gad, is set to hit theaters next month on August 16.

The next-generation iPhone will launch on September 6th, according to German Apple website iFun [Google Translate]. The site does not have a significant track record with this sort of prediction, however.

Earlier this week, KGI Securities analyst Ming-Chi Kuo said the low-cost iPhone and the iPad 5 would ship in early September with the iPhone 5S coming later because of production difficulties. Kuo has had an excellent track record in recent years. A ramp in production of the iPhone 5S at the end of this month was reported by a number of parties last week.

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Rendered mockup of lower-cost plastic iPhone front and back

Additionally, iFun claims two new "device types" will be introduced, likely an iPhone 5S and a new low-cost iPhone with a plastic backing that has been extensively rumored.

During Apple's earnings call this week, CFO Peter Oppenheimer said that Apple would have a "very busy fall" and said he would go into more detail "in October". It isn't clear whether he meant because new products would be launching then or because that's when the next earnings call will take place.

Update: The Loop's Jim Dalrymple has put an end to this rumor with a simple, "Nope."

Related Forum: iPhone

T-Mobile, the fourth-most popular carrier in the United States in terms of subscriber numbers, announced today that it is launching a new promotion whereby any new, eligible customers will not have pay a single cent in downpayment for a new phone when signing up to a T-Mobile USA plan. Customers can now receive new devices for free and spread the cost over the terms of their contract, which in most cases is 24 months.

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In the case of the iPhone 5, customers pay an extra $27 a month on top of their standard price plan, which includes any minutes, text messages and internet access, with no interest payable. Prior to this, the iPhone cost $145.99 upfront plus 24 monthly payments of $21, giving a total cost of $649.99 – under the new plan, customers pay $648 in total for the device. It is important to note here that this promotion is only valid for the 16 GB model; the 32 GB and 64 GB models are not available at a special promotional price.

T-Mobile's recently initiated JUMP plan, which is designed to allow customers to upgrade their phones twice a year after paying an additional $10 device fee, can be combined with the new $0 downpayment program. According to T-Mobile, the $0 price promotion is available for a limited time, though the company did not specify an ending date.

14-year-old iOS developer Ross Penman has created 'Dev Center Notifier', a SMS notification system that sends text messages to users when the status of each service on Apple's Developer Center changes.

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Dev Center Notifier will send an SMS to your phone each time any component of Apple's developer services goes online or offline. Data comes directly from Apple's Developer System Status page.

This service comes after the current outage of Apple's Developer Center which started late last week. Earlier this week, independent security researcher Ibrahim Balic speculated that he may be responsible for the security breach that caused the outage.

A report from the China Times (cited on the Japanese website Mac Otakara) predicts an October launch for an updated MacBook Pro model featuring Intel's new Haswell processors, which are already present in the new MacBook Airs, released last month at Apple's annual WWDC event. The report cites sources in Apple's lengthy supply chain and suggests that the new models will remain the same price as the previous ones.

intel haswell

The new range of Haswell processors (image above courtesy of ITPro UK) offer a slight boost in processor speed, but their major draw is a lower rate of power consumption compared to previous models. The MacBook Air now boasts an "all-day battery life" of up to 12 hours for the 13-inch model and up to 9 hours for the 11-inch model. The chips also offer support for the latest 4K displays, which offer a resolution 4 times that of standard HD displays. Currently, no Apple products feature the resolution.

KGI Securities analyst Ming-Chi Kuo, who has a good track record when it comes to Apple rumors, originally predicted new MacBook Pros with Haswell processors at WWDC back in June, alongside a slimmer MacBook Pro with Retina display, though he later updated his prediction to suggest a mid-September release date for refreshed MacBook Pros.

There is some evidence that suggests Apple vendors may be trying to run down existing MacBook Pro stock. Both Best Buy and Amazon are currently offering significant back-to-school discounts on the MacBook Pro, offering the 13-inch base model (with 4 GB of memory and a 500 GB hard drive) for $999, compared to $1,199 in the Apple Store. Best Buy has dropped the price even further for students, with an additional $100 off.

The sales do not appear to be confined to the United States as Amazon UK is currently selling the same entry level 13-inch MacBook Pro for £904.95 ($1,395), instead of £999 ($1,539) in the Apple Store.

Yesterday, Mac Mini shipping times slipped to 5 to 7 days in the official Apple Store, suggesting that Apple may also be gearing up to introduce additional new products in the near future.

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

The Los Angeles Unified School District is planning to give all of its students free iPads by the end of 2014 as a part of a program launched by the district, reports CITEWorld. The program, which will see a total of 640,000 iPads handed out, is part of an initiative to improve education for students and to ready them for the workforce by enhancing their technological skills and comprehension.

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The district plans to distribute 31,000 iPads to 49 of its 1,124 K-12 schools to begin with during the first phase of the program, with plans to begin distributing the rest throughout 2013 and 2014. Each of the iPads will come preloaded with digital textbooks from educational books publisher Pearson.

"The most important thing is to try to prepare the kids for the technology they are going to face when they are going to graduate," said Hovatter. "This is phase one, a mix of high school, middle school, and elementary students. We're targeting kids who most likely don't have their own computers or laptops or iPads. Their only exposure to computers now is going to be in their schools."

Apple has long had a heavy focus on the educational market, discounting its product lineup for students. Last month, Apple announced that it had been awarded a $30 million deal from the LA Unified School District to bring iPads into its schools and the company has also been in talks about a huge educational deal with the Turkish President.

Marketing research firm Harris Interactive has awarded Apple the title of “Brand of the Year” in the categories of smartphones, tablets, and computers, as first reported by VentureBeat. The distinction comes after a poll asking 38,500+ Americans about the perceptions of their favorite brands, in which Apple was placed above other competitors such as Hewlett-Packard, Amazon, Samsung, and HTC.

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"Americans continue to give Apple brands strong ratings," says Manny Flores, Senior Vice President at Harris Interactive. "And while their Consumer Connection scores are strong within their respective categories, what really stands out is that in all three of the categories Apple brands are measured - Computer, Tablet and Mobile Phone - its Brand Momentum scores are in the top 30 of all 1,500 brands evaluated in the study, showing that consumers see this as a brand of the future.

These awards come after BBC reported about a survey done by marketing group Added Value (AV), who claimed that Apple’s brand has become “less inspiring” among consumers.

Research firm IDC has released its estimates on worldwide mobile phone sales for the second quarter of 2013, showing Apple's iPhone growth slowing as it posted its second-lowest iPhone growth rate in four years with only 20% year-over-year growth compared to 52.3% growth for the entire market. However, Apple maintained a hold on the number two spot for smartphone makers behind Samsung, as other competitors LG, Lenovo, and ZTE failed to hit the 6% mark during the quarter.

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Worldwide Smartphone Shipments in 2Q13 in Millions of Units (Source: IDC)

Apple posted its second-lowest year-over-year iPhone growth rate in almost four years as some buyers presumably held off on iPhone purchases in advance of an expected next-generation device launch this fall. Nonetheless, the 31.2 million iPhones Apple shipped last quarter was impressive as its flagship iPhone 5 model, which has been in the market for three quarters, was faced with additional global competition in the form of Samsung's Galaxy S4 and HTC's critically-acclaimed One models. Apple's growth is likely to accelerate globally assuming it launches a lower-cost iPhone and continues to penetrate prepaid markets in the quarters to come.

Apple continues to benefit from the growth of smartphones, as it held onto its spot as the number three manufacturer in the world in looking at total mobile phone shipments. Apple’s overall unit shipments were up 5.2% from previous quarter, while overall market share rose 0.8% allowing the company to grab an overall 7.2% market share for the quarter.

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Worldwide Mobile Phone Shipments in 2Q13 in Millions of Units (Source: IDC)

Related Forum: iPhone

According to electronics buyback site Gazelle.com, while Google's newly introduced Nexus 7 has proven to be a popular upgrade choice for users who already own the current version of the tablet, it isn't attracting iPad owners.

The site told TechCrunch that after the new Nexus 7 was unveiled, there was a 333 percent increase in the number of Nexus 7 trade-ins compared to the same day last week, marking Gazelle's biggest Nexus 7 trade-in day to date. In the days ahead of Google's announcement, the site saw a 442 percent increase in the number of trade-ins.

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The Nexus 7 trade-in activity spiked so high that it made up nearly a quarter of all trade-ins for non-iPad tablets since the site began accepting them earlier this year.

Wednesday, the day Google made its announcement, was also the biggest Nexus 7 trade-in day at Gazelle to date, beating the next biggest day by 380 percent. That previous record was set when the new Nexus 7 leaked on July 17, which clearly prompted early adopters to take advantage of a small head start ahead of the big reveal.

In comparison, Gazelle did not see any notable increase in iPad trade-ins during the Nexus 7 launch day, suggesting that the newly introduced tablet isn't as appealing to iPad owners. This is somewhat unsurprising given the "lock-in" that Apple's iOS ecosystem exhibits. During Tuesday's third quarter earnings call, Tim Cook spoke about Apple's efforts to get buyers into the iOS ecosystem, saying "the stickiness of the platform is huge and it's great for customers."

The updated Nexus 7 offers a number of impressive components that give it a leg up over Apple's own 7.9-inch iPad mini, including a 1.5GHz quad-core processor, 2GB of RAM, a nine hour battery life, and a $230 price tag.

Yahoo Fantasy Sports LogoYahoo has updated the iOS app for its incredible popular Fantasy Football product for the 2013 NFL season with mobile drafting, a much-requested feature. Before, fantasy team owners were required to use a full-sized computer to conduct a fantasy draft, while now players will be able to draft from wherever they are.

Today, the Yahoo! Fantasy Sports mobile team is proud to share some news. We’re launching the 2013 Fantasy Sports app for iPhone, iPad, iPod touch, and Android smartphones, with a new design and lots of great new features. Front and center is what you’ve all been asking for — mobile drafting!

As a Yahoo! Fantasy Sports Football manager, you can now sign up, draft a team and win your league championship wherever you are.

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Players can follow their team with live scoring, roster management, breaking news, message boards and more. Other new additions to the app for this year include notifications and mock drafts.

The 2013 NFL season opens Thursday, September 5 with the Baltimore Ravens playing the Broncos in Denver.

Yahoo! Fantasy Football is a free download for the iPhone and iPad. [Direct Link]

Ahead of a "very busy fall" for Apple, Mac mini ship times on many Apple Online Stores have slipped to 5-7 business days.

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All other Macs on the online store have shipping estimates of "within 24 hours". That said, most Apple Retail Stores do show availability for the mini, as does Amazon.com.

Apple sometimes does have temporary product shortages of computers mid-cycle, but they can also portend intentional drawdowns of stock ahead of a product refresh. The Mac mini is a candidate for an upgrade to Haswell processors, and it is coming due for a possible update according to the MacRumors Buyer's Guide.

Related Roundup: Mac mini
Buyer's Guide: Mac Mini (Buy Now)
Related Forum: Mac mini

Ahead of an upcoming import ban on older Apple devices, Verizon attorney Randal Milch has published an open letter via The Wall Street Journal, calling for presidential intervention in the case to veto the ban.

High-tech products can implicate thousands of patents. If the ITC finds that a product infringes even a single one, it can stop the product at the border. But that's basically it. The commission can't levy much in the way of a lesser penalty. In the end the consumer suffers when the use of such an enforcement tool is unwarranted.

The import ban was originally scheduled back in June, after the U.S. International Trade Commission reached a decision on an ongoing Apple vs. Samsung patent case. The ITC ruled that Apple infringed on Samsung Patent No. 7,706,384, entitled "Apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system."

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A cease and desist order was issued on several Apple products, including AT&T models of the iPhone 3GS and 4, the iPad 3G, and the iPad 2 3G. The ban did not go into effect immediately, however, as such rulings are given a 60 day window for the White House to intervene.

Though Verizon is not directly affected by case as it pertains solely to AT&T products, Milch believes that such a ban would further encourage patent abuse.

What we have warned is that patent litigation at the ITC—where the only remedy is to keep products from the American public—is too high-stakes a game for patent disputes. The fact that the ITC's intellectual-property-dispute docket has nearly quadrupled over 15 years only raises the stakes further. Smartphone patent litigation accounts for a substantial share of that increase.

While a presidential veto on an ITC decision has not happened since 1987, Milch suggests that intervention is necessary when the patent holder is not using the technology (as is often the case with patent trolls), when the patent holder has agreed to license the patent on reasonable terms, or when the infringement is unimportant to the overall product. Apple's infringement on Samsung's patent falls into the third category.

"There are more than 250,000 patents relevant to today’s smartphones," Milch writes. "It makes no sense that exclusion could occur for infringement of the most minor patent."

Without intervention, the cease and desist order on Apple products will go into effect on August 5, 2013. Apple has filed for an appeal and has also requested a stay on the ban.

iBooksAfter being found guilty in federal court of conspiring to artificially inflate e-book prices, legal experts are estimating that Apple could owe as much as $500 million in damages.

GigaOm has shared a chart provided to the federal judge in the case by the Texas attorney general. It shows how much in damages the five publishers have been found liable and how much they have paid in settlements. The remainder -- after damages have been trebled for willful violations -- works out to roughly $500 million.

The chart shows that the publishers have paid out over $166 million so far. Earlier this month, a lawyer from Hagens Berman — the class action firm in the case — told my colleague Jeff Roberts that Apple would likely face a liability payment of harm to consumers times three, minus the $166 million already paid out by publishers. On Wednesday, Law360 reported (paywall) the same thing, calculating that if Apple loses its appeal it would face about $490 million in damages. I annotated the chart above with those figures.

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Apple has indicated that it will appeal the guilty ruling and it's likely that it will be many months or even years before the case is resolved.

After launching Logic Pro X earlier this month, Apple has updated the audio software with a number of stability fixes and performance enhancements.
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- Fixes an issue that could cause content downloading to stall
- 24-bit audio files are no longer converted to 16-bit when exporting projects to AAF
- Improves stability when switching between audio editors while Flex Pitch is enabled
- Track Stacks that contain both software instrument and audio tracks will no longer be inadvertently flattened by loading a Patch
- Tuner is now available when selecting a Track Stack containing audio tracks
- Addresses graphic and selection behavior issues in the Score Editor

Logic Pro X is described as Apple’s most advanced Logic Pro software to date, offering a number of new creative tools for musicians, a redesigned interface, and an expanded collection of instruments and effects.

Logic Pro X can be downloaded from the Mac App Store for $199.99. [Direct Link]