MacRumors

China Times reports [Google translation, via Mac Otakara] that Taiwanese chip firm Chipbond has been selected to provide a number of components for the iPhone 5S, including the touch display driver as well as chips to support fingerprint sensor and near field communications (NFC) capabilities. The report suggests that Apple will use the fingerprint sensor functionality to enhance the security of NFC features such as mobile payments.

Rumors of fingerprint sensor technology for the iPhone have ramped up since Apple's acquisition of mobile security firm AuthenTec last year. AuthenTec has been rumored to be cutting off its fingerprint sensor customers this year, presumably to focus on supporting Apple's own efforts in the area. Reliable KGI Securities analyst Ming-Chi Kuo has also stated that a fingerprint sensor will be one of the differentiating features for the iPhone 5S.

NFC has been a long-standing rumor for the iPhone, and evidence supporting its inclusion for the iPhone 5 failed to pan out amid claims that the device's design wouldn't even accommodate an NFC antenna. Some have suggested, however, that Apple could have novel plans up its sleeve for deploying NFC within the mostly metal case of the iPhone 5 that will presumably carry over to the iPhone 5S. Still, specific claims of NFC for the iPhone 5S have been essentially non-existent until now.

Last July, it was reported that Apple was deliberately moving slowly into the mobile payments field that could tie in closely to NFC technology. For the time being, Apple is focusing on its Passbook app to offer a digital wallet of passes, coupons, and loyalty cards, although it is easy to see how its functionality could be expanded to include mobile payments and NFC.

Foxconn is reportedly ready to begin ramping up iPhone 5S production, using the same production lines currently used for the iPhone 5.

Citigroup's recent claim that Apple would miss its own Q1/Q2 revenue forecasts has been lent weight by Topeka Capital's Apple Monitor reporting that key Apple suppliers had a "terrible" February (via Business Insider).

The monitor, which tracks the results of Apple's key suppliers, is compiled by Topeka Capital's Brian White, an analyst normally bullish on Apple.

When [supplier] results are good, it usually means good things for Apple. When the results are bad, watch out.

White says the February results for his Apple Monitor were down 31 percent sequentially, which compares to the typical 8 percent decline. Even if you factor in the Chinese New Year, he still says it's bad.

The Chinese New Year tends to result in significantly reduced production, but White calculates that factoring that in still results on a fall in production of 15%, amounting to "the worst February we have on record." White goes on to observe that most of the preliminary Taiwan monitors show weak results, suggesting that the slowdown is affecting the whole industry, though Apple's supply chain figures appear worse than most.

Last month, research firm NPD revealed surprisingly strong Mac and iPod sales in the U.S. for the month of January, but with those product families accounting for smaller and smaller proportions of Apple's revenue, iPhone and iPad sales have become the primary drivers of Apple's performance.

Apple CEO Tim Cook has cautioned against reading too much into supply chain reports, noting that the company has multiple sources for many components and that yield rates may vary over time, but Topeka's Apple Monitor attempts to take some of those fluctuations into account by taking a broader view spanning a number of companies within Apple's supply chain.

Ars Technica shares several photos of an early functional prototype of the iPhone from 2005, revealing a device closer in size to a thick iPad mini than an iPhone.

The photos were sent to Ars by an anonymous former Apple employee who worked on the project in the early 2000s. The prototype is 5x7 inches in size, and nearly two inches thick - though much of the thickness was to accommodate features like serial and Ethernet ports installed purely to use the device in a development environment.

Apple watchers have seen all manner of iPhone prototypes pop up on eBay, in court documents, and in leaked photos. But most were either close approximations of the first iPhone that was released in 2007 or of later models.

What we don't often get to see is early Apple prototypes, those from way before the iPhone started to look like a phone-like object. That's why we were excited to receive photos showing an in-house version of the iPhone from early 2005. The images to Ars through a former Apple employee who worked on various Apple hardware projects in the early 2000s and was thus exposed to some of the earliest versions of the iPhone.

Ars Technica points out that the Samsung ARM chip used is "a distant relative of the chip the first iPhone ended up using, just older and slower."

Forbes reports that Apple and Brazilian company IGB have agreed to end their lawsuit over the iPhone trademark in Brazil, and are close to reaching a settlement agreement.

According to Brazil’s largest daily, Folha de São Paulo, both companies have agreed to end the lawsuit over iPhone and come to some sort of “pacific agreement,” the paper reported on Saturday. Apple has paid millions for its exclusive use of the word iPhone in the past and will likely pay IGB as well.

IGB had applied for the "iPhone" trademarke in Brazil in 2000, years before Apple's phone was launched, and was granted the trademark in 2008.

Apple challenged the trademark on the basis that IGB had failed to use the trademark until it was close to expiration, but the Brazilian Industrial Property Institute ruled in IGB's favor after it launched a low-cost Android smartphone using the iPhone brand late last year. Apple took the matter to court, but has now withdrawn the legal action after IGB suggested that it was open to selling the trademark.

Apple's current use of the "iPhone" name in Brazil is not currently being hampered while the dispute plays out, with the company being allowed to continue selling the iPhone under its popular name and Apple retaining control over the iPhone name for other categories of use such as software.

Apple is expected to make a cash settlement for exclusive rights over the name in Brazil. It previously settled a dispute over the iPad trademark in China for $60 million, but there is no word yet on a settlement amount for the Brazilian case.

Back in late January, an update to the Apple TV software revealed a new "AppleTV3,2", with FCC documents for the device showing up the following day. By digging into the software files for this new device, it was discovered that the device appeared to be using an A5X chip rather than the single-core A5 chip found in the third-generation Apple TV.

This conclusion was based on the chip carrying an identifier of S5L8947 compared to the S5L8945 seen on the original A5X. A similar move was made when Apple rolled out a die shrink of the A5 in the third-generation Apple TV last year, shifting from the original S5L8940 to the smaller S5L8942.

According to Apple, this latest Apple TV update was designed to be invisible to users, offering no changes in features.

Apple's tweaked third-generation Apple TV, which carries a part number of A1469 compared to an A1427 part number for the original version, has now begun making its way into Apple's retail store stocks, and we have purchased one and cracked it open to examine its internals.

Most notably, the tweaked third-generation Apple TV does not contain an A5X chip. Instead, it contains an A5 chip like its predecessor, although the new chip is considerably smaller than the previous one.

The original A5 chip introduced in 2011 for the iPad 2 was built on a 45-nanometer process, measuring 10.09 mm by 12.15 mm, while the first die-shrunk A5 introduced in 2012 for the third-generation Apple TV and the tweaked iPad 2 measured 41% smaller at 8.19 mm by 8.68 mm.

This new A5 found in the tweaked third-generation Apple TV is considerably smaller still, with our measurements putting the chip at just 6 mm by 6 mm.

We do not know for sure what Apple is using to produce this even smaller A5, but it is very possible that the company is piloting a 28-nanometer process from Taiwan Semiconductor Manufacturing Company (TSMC) for this new chip. Such a move would be a major development, making this A5 the first iOS device processor to be manufactured by a company other than Samsung. Samsung is also moving to a 28-nanometer process for its fab in Austin, Texas where it produces chips for Apple, but the facility will reportedly not be ready for mass production at that scale until late this year.

TSMC has been rumored to be coming on board for A6X chip production for the current iPad, as well as for future chips using even smaller processes.

Apple CEO Tim Cook may testify in the e-books antitrust lawsuit filed against Apple and book publishers by the United States Department of Justice, reports Bloomberg.

The lawsuit was originally filed in April of 2012, and has focused on the so-called 'agency model' for pricing ebooks that Apple attempted to negotiate with a number of publishers. Apple had pushed for the agency model in an attempt to dilute Amazon's power in the book market, where it had offered vast discounts, even sometimes selling books at a loss, in order to attract customers who would make other purchases through the site.

But the Department of Justice believes that the agency model as implemented by the publishers at Apple's behest amounts to collusion, with contracts between Apple and the publishers including language that prevented the publishers from offering lower pricing to competitors than they did to Apple. Contrary to the government's claims of an anti-competitive impact from the agency model, Apple and several of the publishers have argued that the move has fostered competitiveness by limiting Amazon's stranglehold on the book market.

The Department of Justice has settled with all of the book publishers initially accused, while Apple remains the main target of the suit.

Earlier this week, Geek.com highlighted a growing a number of complaints from owners of Apple's 15-inch Retina MacBook Pro regarding overactive fans. The issue has been noted in our forums and is the subject of a lengthy thread in Apple's discussion forums. From one report:

My first instance of runaway fans was under the lightest of conditions, having only one browser open only a few tabs and a cool computer. The fact it was cold is what is so alarming. Out of nowhere the fans spun up to a roar, stayed there for a few minutes, then decelerated back down to idle. Every so often this happens, usually daily, and it's horribly annoying on a high quality well engineered computer.

From the list of reports flowing in, users suspect that Apple's recent shift to using SanDisk solid-state drives in the Retina MacBook Pro may have something to do with the issue, although it is likely a software issue rather than a hardware one.

Apple support staff have offered mixed responses to the issue, with some customers receiving replacement machines while others have been assured that the behavior is normal. If the issue is indeed a software one as is suspected, Apple should be able to fix it relatively easily with an update pushed out to owners of the affected machines, but it is unclear whether Apple is working on a fix at this time.

(Photo from iFixit)

In late 2012, a new Apple seller appeared on eBay, offering Apple-certified refurbished products. The storefront, known simply as Refurbished-Outlet, is believed to be run by Apple itself.

As 9to5Mac pointed out in November, the Refurbished-Outlet seller makes the same promises that Apple does when selling refurbished products on its online Apple Store, with a full one-year warranty and a quality inspection by Apple.

Refurbished-Outlet has quietly sold over 10,000 Apple products, and as of late (via dealnews) the store has been selling products at a steep discount, offering cheaper prices than can be found in Apple's own "Special Deals" refurbished store.

For example, Refurbished-Outlet was previously offering a 13-inch MacBook Air with a 128GB SSD for $899. Apple charges $999 for the same refurbished setup. Currently, Refurbished-Outlet has an 11-inch MacBook Air with a 1.8Ghz processor, 4GB RAM and a 256GB HD for $949, while the same laptop is $1,049 from the Apple Store.

A fourth generation 32GB iPod touch can be purchased from Refurbished-Outlet for $179, which Apple normally charges $209 for. A 32GB Wi-Fi + Cellular third generation retails for $599 in the Apple Store but can be purchased for $549 from the eBay store.

Though Refurbished-Outlet offers some products at discount, several share price listings with Apple's official refurbished store. For example, the 2.4Ghz 17-inch MacBook Pro with 4GB RAM and a 750GB hard drive is $2,079 on eBay, and $2,079 in the Apple Store.

Prices are unpredictable and inventory changes on a daily basis, but the Refurbished-Outlet does offer significant discounts on Apple-certified refurbished products. Neither Apple nor eBay have confirmed that Apple is running the store directly.