MacRumors

KGI Securities analyst Ming-Chi Kuo, who has on a number of occasions offered accurate information about Apple's product plans, issued a new research report this week outlining his expectations for Apple's rumored smart watch device, informally dubbed "iWatch". Despite some expectations that the device could launch later this year, Kuo believes that both hardware and software issues will result in the iWatch making its debut in the second half of 2014.

Apple may not have adequate resources to develop an iWatch version of iOS because it may require big changes to iPhone and iPad iOS this year. In addition, wearable device components aren’t mature. For these reasons, we think mass production of the iWatch is more likely to begin in 2H14, not 2H13 as the market speculates.

On the hardware front, Kuo projects that the iWatch will use a 1.5-2.0 inch display and unsurprisingly believes that Apple will draw on the iPod nano when it comes to components, particularly with respect to the main processor and the touch technology.

Currently, the iPod nano uses the same GF2 touch technology as used by the iPad mini. Since the size and computing ability requirements of the iWatch are similar to those of the iPod nano, we think iWatch will use iPod nano’s GF2 touch technology and AP [application processor].

Further, Kuo believes that biometrics will be a key feature for the iWatch, allowing for increased security and opening the door to broader health-related applications. The biometric support should also aid in building out the cross-device integration many expect to see from the iWatch.

Rumors regarding Apple's smart watch project have been relatively quiet over the past few months, although a report from earlier this week claimed that Apple is testing 1.5-inch OLED displays for the device, with Foxconn said to be gearing up for a trial run of 1,000 devices.

Following Apple's adoption of sapphire crystal as a strong and durable covering for the rear cameras on the iPhone 5 and fifth-generation iPod touch late last year, rumors of expanded uses for the material have gained some traction. Back in March, we covered a report suggesting that sapphire could see wider adoption as coverings for displays on mobile devices, and just last week a sketchy rumor claimed that Apple is planning to use a sapphire-covered capacitive home button with integrated fingerprint sensor for the iPhone 5S.

Amid these discussions of the potential of sapphire, Corning has published a feature outlining why its latest Gorilla Glass 3 is in fact already a better option than sapphire for mobile device displays, citing greater strength, lower weight, less energy cost in production, and significantly lower pricing. And with those features has come widespread adoption, with Corning reporting that over 1.5 billion devices have been made with Gorilla Glass.

Jeffrey W. Evenson, [Corning] senior vice president, remarked, “Discussion seems to center around sapphire as an obvious solution for a cover material. What would people say if someone invented a cover that was about half the weight, used 99 percent less energy to make, provided brighter displays, and cost less than a tenth of sapphire? I think they’d say that sapphire was in real trouble. It so happens that we at Corning already invented that cover – and it’s called Gorilla Glass.” Evenson added that the company’s tests so far indicate Gorilla Glass requires about three times more force to break than sapphire after both materials have received similar wear and tear.

Corning also discusses its latest work with Gorilla Glass, noting that the company has already trimmed the materials thickness to the point where it can be curved and shaped without losing strength. Earlier this year, The New York Times reported that Apple was working on a curved glass smart watch, a product that could potentially take advantage of Corning's latest Gorilla Glass advancements.

Going even further, Corning lays out its future plans for Gorilla Glass, sharing that the company is working hard on new versions that reduce reflections for better visibility in bright sunlight and which incorporate antimicrobial technology to minimize the germs which are prevalent on mobile devices.

Last week Apple told the U.S. District Court in California that it planned to add the Samsung Galaxy S4 to its patent lawsuit already underway against Samsung. As promised, Apple today filed a motion (via Foss Patents) that details five different patents that the S4 allegedly infringes on.

The filing includes two Siri-related patents violated by Google Now, Google's robust voice activated search assistant. Patents '604 and '959 cover a "universal interface for retrieval of information in a computer system."

The other three patents in the filing cover a "graphical user interface using historical lists with field classes (’502)," a "system and method for performing an action on a structure in computer-generated data ('647)." and "asynchronous data synchronization amongst devices ('414)." According to Apple, these are all claims that other Samsung devices already violate.

Apple determined that the Galaxy S4 product practices many of the same claims already asserted by Apple, and that the Galaxy S4 practices those claims in the same way as the already-accused Samsung devices.

Samsung and Apple were ordered to narrow the scope of their ongoing legal battle earlier this year and as a result, Apple has stated that it will remove one of the other 22 infringing devices from the lawsuit if it is permitted to add the Galaxy S4.

There will be a hearing to discuss Apple's newly filed motion on June 25 in San Jose and the lawsuit, which covers newly released devices that were not a part of the original dispute, is expected to go to trial in March of 2014.

Apple today rolled out some updates to its online store, not only posting new features advertising Father's Day gift purchases but also introducing a new, cleaner look for the store. While the main page of the online store had previously consisted of a main center column with product promotions flanked by sidebars with additional links, the new look brings an all-feature design focusing more on product images.

Previously, the left sidebar had offered quick access to accessory categories for Apple's various product lines, as well as links to the company's refurbished and clearance stores. Shoppers looking for accessories must now drill down through the product categories along the top "shop" navigation bar to reach the various accessories, while links to the refurbished and clearance stores are listed at the bottom of the page.

A similar situation exists for the former right sidebar, which offered links to Apple's other stores such as for education and business, as well as store services including gift cards, financing, and returns. All of these links are now only directly accessible through the store site map links at the bottom of the page.

The change removes some redundancy on Apple's main store page, as many links had appeared both in the main body of the page and lower down in the site map section, and by removing the sidebar links Apple has been able to bring much greater prominence to product images.

Apple has made additional image-centric changes further down in the site, with the main pages for each of the company's product lines now allowing for larger images and less text, while accessory pages have seen even more dramatic changes away from simple lists and toward more featured images.

Update: As noted by Macerkopf.de [Google translation], Apple has also added the ability for users in the German online store to pay for their purchases via PayPal.

Three Apple executives, CEO Tim Cook, CFO Peter Oppenheimer, and head of tax operations Phillip A. Bullock, appeared in front of the U.S. Senate Permanent Subcommittee on Investigation earlier today, testifying about Apple's tax policies.

MacRumors has a rough transcript of the hearing, while the full event is viewable on C-SPAN. The full hearing was quite long, but here are some selected excerpts from our transcript.

At the beginning of the hearing, Senators are allowed to make whatever opening statements they wish. Senator Rand Paul (R-KY) gave a spirited defense of Apple, saying he was "offended" by the hearing.

"Tell me a politician who is up here and doesn't try to minimize his taxes… Tell me what Apple has done is illegal. I am offended by a government… that convenes a hearing to bully one of America's greatest success stories… If anyone should be on trial here, it should be Congress. I frankly think the committee should apologize to Apple."

Instead of Apple executives, we should have brought in a giant mirror. This problem is solely and completely caused by our tax code. This committee should look in the mirror. "I find it abominable."

We need to apologize to Apple, compliment them for the job creation they're doing, and get on with our job and redo the tax code.

Apple CEO Tim Cook and CFO Peter Oppenheimer also made opening statements. Cook noted that Apple is responsible for creating or supporting 600,000 jobs in the United States, and disclosed for the first time the the upcoming 'Made in the USA' line of Mac computers would be manufactured in Texas, with parts coming from a wide variety of states.

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Apple has been making efforts to offer deep social network integration in its mobile operating system, first offering Twitter integration in iOS 5 and then Facebook integration in iOS 6. According to 9to5Mac, Apple will expand its social network integration even further with iOS 7, including support for both photo sharing site Flickr and video sharing site Vimeo.

As with Facebook and Twitter integration, Vimeo and Flickr integration will allow users to be able to sign in to the social networks in the Settings menu. Those one-time sign-in credentials will be usable across iOS, providing comprehensive sharing options and easy integration with other downloaded apps.

With Flickr integration, iPhone, iPad, and iPod touch customers will have the ability to share photos stored and/or taken on their devices to Flickr with a single tap from the system-wide share menu. Flickr has been integrated into the paid iPhoto iOS App Store app and OS X Mountain Lion since 2012, but iOS 7 will represent the first time in which the photo sharing service has been integrated deeply into the entire iOS operating system.

Flickr is a logical addition to iOS given Apple's existing relationship with Yahoo, and popular video hosting site Vimeo is also a logical choice for iOS 7 as Apple continues to move away from Google products. Apple stopped offering YouTube as a stock iOS app with iOS 6 and also introduced its own mapping app, discontinuing its use of Google Maps.

While Apple continues to allow direct video uploads to YouTube from its camera app, Vimeo integration will give iOS 7 users an additional option for video uploads. As with Yahoo, Apple has an existing relationship with Vimeo, having offered integration with the service in OS X Mountain Lion.

As noted by 9to5Mac's unnamed source, though Flickr and Vimeo integration is currently in the works, as with all beta software, there is a risk that it could be removed before the public release of iOS 7.

Apple's upcoming operating system is expected to feature a "flatter" design to modernize the look of iOS 7 while removing many of the skeuomorphic design elements that were introduced with iOS 6. Apple is expected to debut iOS 7 at its upcoming Worldwide Developers Conference in June with a release to follow in the fall, and MacRumors has noted a surge in traffic from devices running iOS 7 suggesting that a preview is imminent.

Microsoft today released details on its next generation console at an event hosted at its Redmond campus in Washington. Called the Xbox One, the new console is designed to be the ultimate all-in-one home entertainment system with a heavy focus on both gaming and interactive television watching.

The Xbox One recognizes individual users and presents a customized home screen filled with content like TV and movies, games, and music, along with a new Trending section that displays friend activity and a live TV system.

Xbox One utilizes voice commands, motion control via the Kinect, and a new feature called Instant Switching to allow Xbox users to switch from gaming to TV to other types of entertainment with quick commands that work as fast as swapping channels on the TV. Home screen sharing, called Snap Mode, allows users to display multiple items on the television screen. The Xbox One's comprehensive voice commands, such as "Watch CBS" or "Play Game" are what many imagined Siri integration with the Apple TV might look like.

The new Xbox sports 8GB of RAM, an 8-core CPU, a 500GB hard drive, USB 3.0 ports, and a slot-loading Blu-ray drive. It also comes equipped with a newly redesigned Kinect sensor that is far more robust for better motion sensing and an updated controller that has an updated d-pad, impulse triggers and a more ergonomic design, in addition to several other improvements.

Xbox's second-screen companion app SmartGlass, which was originally introduced last year, has been improved to allow smartphones and tablets like Apple's iPad and iPhone to connect seamlessly to the Xbox one. According to Marc Whitten, SmartGlass is "fully integrated" into the new console.

SmartGlass in its current form is designed to allow users to interact with the Xbox 360 in a number of ways, namely navigating through menus, controlling video, browsing the internet, and using the keyboard to type on the console.

A number of games were also revealed at the Xbox One event including Madden NFL 25, NBA Live 14, EA Sports UFC, FIFA 12, Forza Motorsport 5, Call of Duty: Ghosts, and Quantum Break, a new game from Remedy that aims to blend television and gaming. 15 new games will be released during the first year that Xbox One is available, with eight of those being new franchises.

Though no exact release date was given, the Xbox One will launch around the world "later this year." More information about the console and its upcoming games will be available at E3 in June.

The American Customer Satisfaction Index (ASCI) has today released its annual rankings of customer satisfaction for mobile phones in the United States. While Apple had the highest customer satisfaction index score for the second year in a row, its score has fallen slightly while competitors like Motorola Mobility, Nokia, and Samsung have all gained in score.

Apple is still at the top of the list when it comes to smartphone satisfaction, but this year's ranking of 81 (out of 100) is two percent below its 2012 ranking of 83. Motorola phones came in second after Apple, hitting a ranking of 77 after a 5% gain year over year.

Nokia remained high on the list with a 1% gain giving it a score of 76, and Samsung experienced the most growth at 7%, bringing it to a score of 76. HTC and LG both saw drops in satisfaction while BlackBerry remained on the bottom of the list with a score of 69.

The improvement [of Samsung] is the largest yet for any cell phone manufacturer, and earns Samsung a position even with the industry average and Nokia (+1%) and just behind second place Motorola, up 5% to 77. Nevertheless, Samsung remains well behind industry leader Apple.

Since the May 2012 customer satisfaction survey which was the first that ranked smartphones, Apple has introduced its newest phone, the iPhone 5, while Samsung has debuted several devices including its most recent Galaxy S 4.

The ACSI also ranked wireless telephone service, with Verizon and AT&T experiencing small gains in satisfaction. Verizon ranked first with a score of 73 outranking Sprint's steady 71, which earned it the top spot last year. AT&T went from 69 to 70, and T-Mobile dropped to last place with a score of 68.

The ASCI bases its customer satisfaction index on a survey of 70,000 people in the United States that asks customers about the products and services they use the most. It measures satisfaction with more than 230 companies that span 43 industries and 10 economic sectors.