MacRumors

Digitimes reports that Taiwan Semiconductor Company (TSMC) has officially landed a three-year deal with Apple to produce the A-series chips that will be used to power upcoming iOS devices. The deal is said to begin with the A8 chip, with future A9/A9X chips also mentioned as being included.

TSMC will start to manufacture Apple's A8 chips in small volume in July 2013, and substantially ramp up its 20nm production capacity after December, the sources revealed. The foundry will complete installing a batch of new 20nm fab equipment, which is capable of processing 50,000 wafers, in the first quarter of 2014, the sources said.

A portion of the upcoming production capacity, estimated at 20,000 wafers, can later be upgraded to process wafers used to build 16nm chips, the sources continued. TSMC is scheduled to volume produce the Apple A9 and A9X processors starting the end of third-quarter 2014, the sources said.

The report claims that the A8 will appear in a new iPhone "slated for release in early 2014", although it is unclear how that timeframe would fit into Apple's usual product lifecycle. Apple has yet to introduce a device running an A7 chip, and with that chip expected to debut in an iPhone later this year, an early 2014 launch for an A8-based iPhone would seem to be too early.

Apple has so far exclusively used Samsung as the supplier for its A-series chips, but with the two companies emerging as bitter rivals in the mobile device market, Apple has reportedly been trying to reduce its reliance on Samsung for component supplies. TSMC has been the most commonly rumored candidate to take over supplying Apple's A-series chips, but it has taken some time for the two companies to reach an agreement and work out any technical hurdles to the shift.

Apple's Board of Directors has elected to modify the award of restricted stock that Tim Cook received after being promoted to CEO in August 2011. The modification, made at Cook's request, changes the award of 1,000,000 restricted stock units -- originally supposed to be awarded in two lump sums over 10 years -- to a more performance-based compensation system.

A restricted stock unit, or RSU, is a form of compensation valued in terms of company stock, but the stock is not issued at the time of the grant. Instead, the recipient gets shares of stock at a later date, generally only if they are still employed by the company.

According to a filing with the SEC today, the Compensation Committee of the Apple Board of Directors approved the amendment of the award from August 2011, though the amendment does not change the fair value of the grant as of the day it was rewarded.

The Committee intends for future stock awards to Apple executives officers to be performance-based and Cook will lead by example. However, though normal performance-based compensation normally has both an upside and downside, at his request, Cook's award will solely have a downside component.

Under the adopted modification, Mr. Cook will forfeit a portion of the 2011 CEO equity award, which was previously entirely time-based, if the Company does not achieve certain performance criteria. While the Committee generally believes that a performance-based award should have both a downside and an upside component, at Mr. Cook’s request, the modification does not contain an upside opportunity for overachievement of these criteria. As a result of implementing a modification with only downside risk, the Committee has determined that a portion of the original grant should vest earlier than originally scheduled. This modification will not change the award’s original value for accounting expense purposes.

The original award would have given Cook 500,000 shares of Apple stock in August 2016, with another 500,000 in August 2021.

The new, amended package will give Cook 100,000 RSU's in August 2016, another 100,000 RSU's in August 2021, and the remaining 800,000 RSU's in ten equal allotments over the ten-year life of the initial award.

In order to receive the 80,000 share annual award, Apple's 'total shareholder return' will be compared to companies in the S&P 500. If Apple's performance is within the top third of that group, the award for that year will vest in full. If its performance is in the middle third, the award will be reduced by 25%, and the bottom third, the the award will be reduced by 50%.

As a result of the changes Cook will receive at least 672,877 shares of Apple stock by the end of the award in 2021, with the possibility of 1,000,000 shares total if Apple continues to outperform its peers. The Form 8-K filing that Apple filed with the SEC today contains additional information about the modifications to Cook's award.

The first trailer for Ashton Kutcher's 'Jobs' was released earlier today, giving the wider public its first glimpse at the movie after it premiered at the Sundance Film Festival to mixed reviews earlier this year.

The film was originally scheduled for release in April, but will now receive a widespread release on August 16, 2013. A minute-long clip was released back in January but the trailer showcases a number of scenes from the film.

"Jobs", which stars Ashton Kutcher as Steve Jobs and Josh Gad as Steve Wozniak, is one of several Jobs-related films in the works or already released. Back in April, rumor site Funny or Die released a rather poorly received "iSteve" comedy film starring Justin Long, who had played the "Mac" character in Apple's long-running "Mac vs. PC" ad campaign.

A third film is being written by Aaron Sorkin and is the official adaptation of Jobs' authorized biography by Walter Isaacson. The film, which is still in the early stages of development, is planned to encompass three 30-minute scenes showing Jobs backstage just prior to the launches of the original Mac, NeXT, and the iPod.

Apple recently updated its "Optimizing Apps for iOS 6"developer page with a new pie chart highlighting the lack of fragmentation among iOS versions being run on active mobile devices (via AppleInsider). According to the chart, 93% of iOS devices accessing the App Store over a two-week period ending on June 3 were running some version of iOS 6, with 6% running iOS 5 and just 1% running earlier versions of the operating system software.

Apple's chart appears to be a direct jab at Google, which has long published its own pie chart that currently shows just 33% of devices visiting the Google Play store over the same time period running the company's latest Android 4.1-4.2 Jelly Bean versions, which began appearing last July. In fact, the most popular version of Android remains 2.3.x Gingerbread, which first appeared in December 2010.

Apple executives have increasingly focused on Android's fragmentation as a major weakness of the platform, with developers having to target many different versions of Android and numerous different devices with their apps. Apple contrasts that experience with developing for iOS, which supports a limited number of display sizes and for which the vast majority of users are running the most recent major version.

Virgin Mobile USA today announced that it will begin selling the iPhone 5 next Friday, June 28, offering the device on its no-contract Beyond Talk service plans. The plans start at $35/month for 300 minutes plus unlimited text and data, although the carrier begins throttling data speeds after a monthly soft cap of 2.5 GB. A $45/month plan offers 1200 minutes, while a $55/month plan adds unlimited calling, and customers can earn a $5/month discount on their bills when they sign up for automatic payments.

As for the iPhone itself, Virgin Mobile is offering a $100 discount off of Apple's standard unsubsidized pricing, selling the 16 GB iPhone 5 for $549.99 with the 32 GB model priced at $649.99 and the 64 GB model at $749.99.

We noted last October that Apple had Virgin Mobile-specific iPhone 5 models ready to go, although it was unclear at the time when they would be released and it remains unknown why it took approximately nine months after the device's launch to appear at the carrier. The iPhone 5 has been available through other prepaid carriers such as Cricket since as long ago as September.

MacRumors has received several images that appear to show both the interior and rear shell of Apple's upcoming iPhone 5S. The device appears to carry the same redesigned logic board that appeared earlier this week, suggesting that this is indeed a new iPhone.

Among the interesting observations from the images:

- Based on the observable features, the logic board appears to be an exact match to the one that appeared in photos earlier this week, with a slightly narrower profile and a new layout for connectors and other components.

- The main chip on the logic board is interestingly not labeled with an A-series name such as on the A6 seen in the iPhone 5. It is unclear whether the chip name has been removed somehow or if it was never printed in the first place.

- A date code visible on the bottom of the main chip reads "1243", signifying that the chip was manufactured in the 43rd week of 2012, corresponding to late October. This would seem to be much earlier than would be expected for a new handset, so it is unclear whether this is a very early prototype that could still be running the same A6 chip found in the iPhone 5 or if it is in fact a different chip.

- The battery carries a more recent Apple Part Number of 616-0652 compared to the iPhone 5 battery, which has carried several different part numbers including 616-0611 and 616-0613. The new battery also has a higher capacity of 5.92 Whr, compared to the 5.45 Whr capacity of the iPhone 5's battery. The battery also has several blank boxes printed on it where various regulatory logos would be, suggesting that this is a prototype battery yet to receive final certifications.

- The rear shell photo shows a vertical pill-shaped window for the LED flash as opposed to a round window, supporting rumors of a dual LED flash for the iPhone 5S. A similar pill-shaped flash window was depicted on a case maker's design drawings that also leaked earlier this week.

- Regulatory identifiers shown on the back of the device such as the FCC ID appear to be placeholders, in several cases reading X1234X.

Apple is expected to launch the iPhone 5S later this year alongside a lower-cost iPhone with a plastic shell that will be available in an array of color options. Rumors have suggested that Apple is likely to release the new iPhones around the September timeframe.

After slightly more than two weeks of litigation, USA v. Apple, Inc. concluded with closing arguments from Apple and the Department of Justice.

AllThingsD reports that Orin Snyder, Apple's lead counsel, closed out the trial with a slick Keynote presentation, as the company's lawyers have been doing throughout the trial.

At one point, the PowerPoint presentation the Government's lawyers were using failed to play audio, with the Judge noting that they weren't using a Mac.

"Apple did not conspire with a single publisher to fix prices in the e-book industry," Snyder said, arguing that the negotiations under scrutiny in this case were nothing more than "standard, lawful business activity." And the DOJ’s claim that they were more than that, a nefarious plot over which Apple served as ringmaster, is entirely unsupported. "All of the government’s evidence is ambiguous at best," Snyder argued, lambasting the DOJ’s case as one built on "word games and inferences."

Snyder's final slide shows an iPad with the text "It's time to close the book on this case".

The Department of Justice has argued that Apple was the "ringmaster" of a scheme to raise e-book pricing across the industry. The government says Apple convinced publishing companies to work together to set pricing above the $9.99 price point that Amazon was selling books at before the iPad came out. The DOJ's slide deck is available from AllThingsD as well.

U.S. District Judge Denise Cote is expected to have a final judgement within a few weeks. Both sides agreed to have a judge hear and decide on the case rather than present it to a jury.

On Wednesday, Apple released a long awaited update that brought new channels to its Apple TV, including WatchESPN, Sky News, and HBO GO.

HBO GO has been available on other platforms like the iPhone and iPad, Roku, and Xbox 360 for quite some time, but it was only in January that reports surfaced suggesting that Apple and HBO were in talks to bring HBO content directly to the Apple TV.

In a post that includes an interview with HBO chief technology officer Otto Berkes, The Verge details some of the reasons why it took so long for HBO to get its content on Apple's set-top box.

According to Berkes, the primary reason for the delay was the creation of the app itself, as it was developed entirely in-house. It is unclear if HBO used an existing SDK to create the app, but that the app was devised by HBO suggests that other companies may be able to create similar apps in the future.

Nothing is more time consuming than writing all the code involved and encoding HBO's massive video library, said Otto Berkes, HBO's chief technology officer, in an exclusive interview with The Verge. He said “optimizing the compression formula to deliver the high-quality video to the lowest bandwidth” is a massive undertaking.

Getting HBO Go on the Apple TV might have taken longer had HBO not begun to boost the number of engineers working at the company's new development center in Seattle. Apple TV was the first app that HBO created completely in-house, said Berkes, a former Microsoft executive who started at HBO two years ago. Prior to Apple TV, HBO teamed with third parties on its apps, but “this was 100 percent created by our software and design staff,” Berkes said.

Despite hiring extra engineers to complete the Apple TV project faster, HBO faced other delays. As highlighted by The Verge, complicated negotiations with cable companies are always involved when attempting to bring channels like HBO and ESPN to set-top boxes.

For instance, Charter Communications has refused to authenticate HBO Go for Apple TV. Comcast blocks subscribers from receiving HBO fare on the Roku, according to HBO’s site. Dish won’t authenticate ESPN but it does authenticate HBO Go for the Apple TV as well as many other gadgets. Yesterday morning, when Apple announced it would offer HBO and ESPN, DirecTV wasn’t authenticating the device. By late afternoon, however, the satellite TV provider had reversed itself.

Though HBO GO is now available on the Apple TV, accessing the content is still dependent on a cable TV subscription. While many hope that content providers like HBO will at some point offer channels on a piecemeal basis that are not tied to cable providers, HBO garners the majority of its revenue through cable operators, which means cutting the cord is a risky prospect at best.

Historically, the Apple TV has taken a backseat to the iPad and the iPhone, which also explains why HBO GO has been available on iOS since 2011 but didn't come to the Apple TV until 2013. Apple has, in the past, referred to the Apple TV as a "hobby project," though the company is rumored to be exploring new product lines that could eventually include an Apple television set.

At the D11 conference in May, Apple CEO Tim Cook reiterated that television continues to be an "area of great interest" for Apple and that the company has a "grand vision" in place.

Facebook today hosted a press event at its Menlo Park campus to unveil new video capturing capabilities for image sharing product Instagram, which Facebook acquired back in April of last year.

As expected, Instagram will now support short video uploads, positioning it as a serious competitor for Twitter's Vine, which allows users to capture six seconds of video footage.

To use the new video capabilities, users will tap on the capture button, which adds a new video icon to activate video mode. Holding down on the video icon will allow users to take up to 15 seconds of footage, more than double the time that Vine permits.

As with Vine, Instagram users can capture collages of video, taking a few seconds of footage at a time before moving on to a different angle or shot. Instagram also includes simple editing tools, allowing users to remove unwanted clips.

In addition to intuitive editing tools, Video for Instagram includes 13 new custom filters that have been specially designed for video plus “Cinema,” which is cinematic stabilization for videos that will “change video forever.” In an on-stage demonstration, Cinema provided sample videos with a noted improvement in stability, heavily cutting down on motion blur.

Unlike Vine videos, Instagram videos play just once right inside the Instagram feed and do not loop. Videos will have a cover photo and will be displayed alongside photos.

While on stage, Instagram co-founder Kevin Systrom also revealed some usage statistics. Instagram now has 130 million active members that use Instagram every month, and those users have shared more than 16 billion photos. The service also receives more than a billion likes per day.

The newly updated Instagram 4.0 with video is available now on the App Store for free. [Direct Link]

The U.S. Patent and Trademark Office today published an Apple patent application (via AppleInsider) filed in February of this year which addresses a system for packaging fingerprint sensors alongside conductive bezels in a single structure. The bezels deliver a small amount of electrical current to the user's finger, allowing the fingerprint to be read by the sensor.

The present disclosure is related to integrated circuit packaging, and more specifically to methods and apparatus for integrally molding a die and one or more bezel structures, with portions of each exposed or at most thinly covered, for fingerprint sensors and the like. [...]

Traditionally, the bezel and the encapsulated die have each been separate elements, brought together in the process of assembling or packaging the sensor apparatus. That is, the bezel and die are not encapsulated together.

The patent application goes on to describe some of the issues with previous fingerprint sensor assembly methods:

Current fingerprint sensor structures require a number of discrete assembly steps. As the number of discrete elements and manufacturing steps increase, manufacturing cost increases and the potential for faulty or inaccurate assembly that negatively affects product consistency and yield losses increase. Discrete element sub-assembly is also a more time consuming process than integrated manufacturing. As in the general art of IC production, there is significant, ongoing commercial pressure to reduce cost, number of components, and number and complexity of manufacturing steps, and size of the completed structure.

Furthermore, the separate bezel and encapsulated die structures are often undesirably large final devices. Further still, it is desired that the bezel be as physically close to the sensors as possible to optimize the sensitivity of the sensor.

While the patent application was filed in February of this year, it actually appears to date much further back, as it is a continuation of a previous patent application filed in March 2010 and originally assigned to UPEK, Inc. That company was a 2004 spinoff of STMicroelectronics' fingerprint biometrics business. UPEK merged with AuthenTec in September 2010, and Apple ultimately gained the rights to the intellectual property when it acquired AuthenTec last year. Only one of the three inventors on the patent, Giovanni Gozzini, continues to work for Apple today.

Apple has been rumored to be adding a fingerprint sensor to its upcoming iPhone 5S as a differentiating feature compared to the iPhone 5. Rumors and speculation about Apple's interest in fingerprint sensor technology have been driven largely by its acquisition of Authentec, although evidence of the company's interest in fingerprint recognition dates back considerably further.