MacRumors

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.

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.

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."

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.

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.

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.

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.

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.

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.

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."

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.

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.

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.

"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."

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.

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.

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.

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.

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.

Apple today filed its 2014 10-K annual report with the U.S. Securities and Exchange Commission, offering a look at how the company has grown over the past year. Among the interesting details included in the report:

- The iTunes Store generated a total of $10.2 billion in net sales during 2014, up from $9.3 billion in 2013. Apple credits the growth to an increase in revenue from app sales, but acknowledged that digital music sales were in decline and partially offset the growth.

- Apple noted that it now has 92,600 full-time equivalent employees, up from 80,300 at the end of fiscal 2013. The majority of that growth was outside of the company's retail division, which grew by 3,400 to 46,200 full-time equivalent employees.

- Apple's store count increased by 21 during fiscal 2014, with average revenue per store increasing slightly to $50.6 million from $50.2 million in 2013. As noted during its earnings conference call last week, Apple expects to open 25 new retail stores in fiscal 2015 with most of those stores being outside of the United States. Apple is also planning to remodel five of its existing stores.

- Apple spent a total of $6.0 billion on research and development in fiscal 2014, up significantly from the $4.5 billion spent last year. That amount contributed towards the company's efforts to "develop new technologies to enhance existing products and to expand the range of its product offerings." As noted by the Financial Times, Apple's $6.0 billion investment is the highest level relative to revenues since 2007, which is the year that the iPhone was released.

- Real estate holdings increased slightly, with Apple now owning or leasing 19.7 million square feet of building space, up from 19.1 million square feet at the end of 2013. Apple says that most of the building space is in the United States, and is expanding its existing office space and customer support call center in Austin, Texas. Work also continues on the company's new campus in Cupertino, which is once again said to contain an estimated 3.6 million square feet of space.

- Apple is expecting its capital expenditures to rise to $13.0 billion in 2015, up from the $11.0 billion spent in 2014. $600 million of that amount will be allocated towards retail store facilities, while $12.4 billion will be used for other expenditures including manufacturing process equipment, data centers, and product tooling.

Apple's annual report, which is mostly targeted at investors and regulators, contains a number of other details about the company's operations. The report also provides an analysis of current product lines and addresses topics like executive compensation, investments, taxes, and more.

During the first 72 hours that Apple Pay was available, Apple saw more than one million credit and debit card activations, according to Apple CEO Tim Cook who took the stage today at the WSJ.D conference in Laguna Beach, California.

Cook himself told the audience that he used Apple Pay himself at Whole Foods after the service launched, commenting on how easy it was. "You're no longer fishing for your credit card," he said. "It's the first mobile payments system that's easy, secure, and private."

According to Cook, the early ramp of Apple Pay "looks fantastic," and though it's only been available for a short time, Apple Pay accounts for more mobile wallets in the U.S, than all other mobile payment options combined.

During the interview, Cook commented on CVS, Rite Aid, and other retailers' decisions to opt out of Apple Pay, saying that "over the long arc of time" retailers will need to do what shoppers want. Ahead of launching Apple Pay, Cook says Apple looked at multiple other payment solutions available on the market and didn't find any of them to be easier than using a wallet.

Retailers, he believes, will ultimately adopt Apple Pay because it's the more secure option, able to prevent fraud incidents like the breaches experienced by Target, Home Depot, Staples, and more, in recent months. Cook reiterated that Apple Pay is secure and that Apple is not collecting data on its customers. "We're not big brother. We'll leave that to others."

"If law enforcement wants something, they should go to the user to get it," he said. According to Cook, it is up to users, not Apple, to choose whether or not it's okay for the government to access their data. "We're designing a Fort Knox kind of thing."

During the interview, Cook also spoke on the Apple Watch, stating that he expects users to will need to charge it on a daily basis, and he commented on the iPod classic, revealing that the company could no longer source parts for the device. An official rough transcript of Cook's comments during the interview can be found over at The Wall Street Journal.

Apple CEO Tim Cook took the stage today at the WSJ.D conference in Laguna Beach, California, where he commented on an array of topics including the Apple Watch, Apple Pay, Apple TV, and more.

Unsurprisingly, Cook said that Apple is "excited" about the upcoming launch of the Apple Watch, and he's impressed that Jony Ive and his team had the foresight to understand that "something you wear has to be personal" and that it can't be "geeky."

Cook divulged some new information on the Apple Watch's battery, which has previously gone unmentioned by Apple. Cook says that people will use it so much that it will need to be charged on a daily basis. "You're going to wind up charging it daily," he said, declining to provide a specific battery life for the device as Apple is still examining how people use it.

Battery life on the Apple Watch has been in question since long before the device launched, with early reports suggesting Apple was having trouble getting the device to last longer than a day. While the company was originally aiming to have the Apple Watch last three to four days, it appears that battery life may be closer to the iPhone's battery life, requiring a charge on a nightly basis. Apple employees have also suggested that the device may only last for a full day of usage, which is why Apple designed an easy charging system.

The Apple Watch connects to a magnetic charger that's much like the MagSafe chargers supplied with the Mac, snapping easily to the back of the device. High-end versions of the Apple Watch even ship in a luxury box that doubles as a charging stand. Apple likely has not commented officially on the Apple Watch battery as it is continuing to finalize the software for the device ahead of its early 2015 launch.

T-Mobile CEO John Legere today took the stage at Re/code's Code/Mobile event in Half Moon Bay, California, where he spoke on the new Apple SIM, demand for the iPhone 6 Plus, and the importance of selling the iPhone.

According to Legere, the launch of the iPhone 6 and 6 Plus was T-Mobile's biggest phone launch the company had ever seen, and Legere called demand for the iPhone 6 Plus "mind blowing." He said that it skewed very differently from what the company anticipated, and while he couldn't comment on the current demand ratio, he said at one point it was around 55/45 rather than the 75/25 or 80/20 projected in favor of the iPhone 6. Legere said that while the backlog is coming down, it will be awhile before the company is able to provide devices to everyone.

While on stage, Legere sorted out much of the confusion surrounding the Apple SIM, which is designed to allow users to easily switch from carrier to carrier with their iPad Air 2 or iPad mini 3. According to Legere, when bought from Apple, the SIM card in the iPad Air 2 and the iPad mini 3 offers customers complete flexibility, letting them choose Sprint, T-Mobile, or AT&T.

iPad Air 2 and iPad mini 3 devices that Apple sent to T-Mobile and AT&T for sale include Apple SIMs that are pre-coded to each carrier, which means the SIM cards can't be used interchangeably. Because the iPads purchased directly from Apple are usable with any participating carrier (Verizon has opted out), Legere recommends that users purchase the iPad Air 2 and the iPad mini 3 directly from an Apple Store.

Apple SIMs from an iPad Air 2 or iPad mini 3 purchased from the Apple Store and then associated with a T-Mobile plan will remain unlocked and usable with other carrier plans, but an Apple SIM activated on an AT&T plan will be permanently locked to the carrier, requiring a new Apple SIM if a user wants to switch plans.

Legere also commented on the importance of the iPhone, stating that "[a] store without the iPhone is sh*t," and attributing much of T-Mobile's recent success to its partnership with Apple. Legere noted one of his tasks upon taking the reins of T-Mobile two years ago was to do whatever it took to land the iPhone, and he accomplished it, noting that he was willing to "get down on his knees" to make a deal happen.

Since 2013, T-Mobile has been on a quest to revamp the mobile industry with a series of Un-carrier initiatives that have thus far seen it uncoupling device fees from service charges, encouraging customers to switch to T-Mobile by paying early termination fees, offering a JUMP! upgrade plan, providing unlimited texting and 2G data in 100 countries, letting customers test drive an iPhone at no cost, offering free streaming music, and bringing Wi-Fi calling to all T-Mobile customers with compatible devices.