MacRumors

The U.S. Federal Aviation Administration is reexamining regulations banning the use of digital devices like the iPad or Amazon Kindle during taxi, takeoff and landing of commercial aircraft. Passengers are banned from using electronics while the aircraft is under 10,000 feet, but pilots and crew are allowed to use their iPads during all phases of flight. This is especially important because many airlines are replacing pilot flight bags with iPads to reduce weight and save money.

Nick Bilton, writing for the New York Times:

When I called the F.A.A. last week to pester them about this regulation — citing experts and research that says these devices could not harm a plane — the F.A.A. responded differently than it usually does. Laura J. Brown, deputy assistant administrator for public affairs for the F.A.A., said that the agency has decided to take a “fresh look” at the use of personal electronics on planes.

Good news for some, but there are some peculiar quirks to the FAA's bureaucratic approval process. Under current guidelines, individual tablet models will need to be tested separately -- on each different aircraft model. The iPad, iPad 2 and iPad 3 will be individually tested, each on a separate flight, on an empty plane, for the Boeing 737, 747, 757, etc. Smartphones are not being considered for approval, which will be good news for those hoping to keep the skies a relatively quiet place.

The F.A.A. said it is exploring how to bring together electronics “manufacturers, consumer electronic associations, aircraft and avionics manufacturers, airlines, pilots, flight attendants and passengers” to figure out how to allow greater use of these electronics on planes. That’s a lot of people, organizations and bureaucracy to juggle. Plus the money to do this testing is going to have to come from somewhere.

We are a long ways off from seeing iPads in use during takeoff and landing, but the fact that the FAA is willing to consider changing the regulations is very promising.

AT&T has issued a brief statement indicating that it set a new single-day record for iPad sales and activations, but stopping short of providing any hard numbers.

On Friday, March 16, AT&T set a new single-day record for its iPad sales and activations, demonstrating robust demand for the new iPad on the nation's largest 4G network, covering nearly 250 million people.

The announcement comes after Apple also said it saw a "record weekend" for the new iPad, which launched on Friday, March 16th.

Neither company has released the exact number of sales or activations.

The Wall Street Journal reports that Sharp Corporation is still trying to ramp up production of displays for Apple's new iPad and expects to start shipments "as soon as possible".

The panels are to be used in Apple Inc.'s new iPad, according to people familiar the matter. The first batch of the U.S. company's newest tablet, released Friday, were not equipped with Sharp's LCD panels after the Japanese company faced difficulty in customizing the screens according to Apple's requirements, one of the people said last week

There has been some debate about Apple's suppliers for the new iPad display. The initial batch seems to be supplied solely by Samsung, but both Sharp and LG are reportedly expected to provide displays as well.

Despite a single display supplier, Apple seems to have been able to produce enough inventory of the new iPad to avoid sell-outs despite what Apple described as a "record weekend".

Since the 3rd Generation iPad's launch, response to the new high resolution Retina display has been quite positive. There have been sporadic reports of defective yellow-tinged displays (see above) that have prompted some replacements. The new iPad screen has been described as slightly "warmer" than the iPad 2 screen, but comparison shots show a much larger difference in what are believed to be defective screens.

During today's financial conference call, one analyst asked if Apple would be issuing a press release about last weekend's launch sales numbers for the iPad. Apple refocused the conversation back on their dividend announcement but did reveal that they had a "record weekend" and were "thrilled with it."

Apple launched the new iPad in 10 countries on Friday, March 16th. The iPad saw long lines in some areas, though Apple was able to retain stock in many U.S. locations. Apple has yet to release actual sales numbers for the initial launch. The initial iPad sold 300,000 units in the first day and went on to sell 1 million units by 28 days. The iPad 2 initial sales numbers were never released, though long lines and sales shortages were common in the weeks after its launch.

Apple has issued a press release indicating that it plans to initiate a dividend and share repurchase program commencing later this year.

Subject to declaration by the Board of Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.

Additionally, the Company’s Board of Directors has authorized a $10 billion share repurchase program commencing in the Company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

“We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future,” said Tim Cook, Apple’s CEO. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”

“Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs,” said Peter Oppenheimer, Apple’s CFO. “We are extremely confident in our future and see tremendous opportunities ahead.”

Apple expects to spend $45 billion over three years with the program..

Apple is providing a live streaming of the conference call to discuss its plans beginning at 6:00 a.m. PDT on Monday, March 19, 2012 at www.apple.com/quicktime/qtv/call31912. We'll provide ongoing updates to this article as the conference call takes place.

Conference Call Updates

- iPhone. Eventually all handsets will be smartphones. Enormous potential
- Amazing start with iPad. With launch of new iPad, things just getting better. We believe the tablet market will exceed the PC market eventually.
- We are innovated at an incredible pace. App ecosystem, iCloud, Siri.
- Also investing in distribution around the world, and direct enterprise sales force.
- Substantial amounts of cash, both domestically and abroad.
- Used some for R&D, acquisitions, strategic pre-payments, retail, and building out of infrastructure. You will see more of these in the future.
- Still have plenty of cash to run our business.
- Initiate a Dividend and Share repurchase. Thought very carefully about our cash balance.
- Innovation is our most important objective.
- This decision will not close any doors for us.
- Details dividend and share repurchase program as described above.
- Continue to assess and review program regularly.

Peter Oppenheimer

- Apple's cash has increased for all the right reasons and we've been very disciplined with the use of our cash.
- $98 billion in cash in the Dec quarter. ~$64 billion outside the U.S.
- In thinking about our cash
- Want to maintain flexibility to take advantage of investment opportunities
- 1. Current income for our longterm shareholders
- 2. Increase attractiveness to a broader investment base
- 3. Preserve value from employee equity dilution.
- Repurchase of shares to offset issuing of employee equity grants.
- $45 billion in domestic cash in the first three years of the program
- Remain confident about the future of our business.

Q&A

Q: Any growth of dividend expected?
A: In consultation with the board, we will review our dividend payments regularly.

Q: Last quarter you talked about many more things to come, can you reiterate more about the confidence of the product pipeline.
A: We actually do love to announce new products, we just don't do it in conference calls. Growth speaks for itself and I am extremely confident in our future pipeline. Our customers will be incredibly pleased with what's coming out.

Q: Did board discuss how to put to use the international cash?
A: We've got plenty of u.s. cash to invest and pay dividend and initiate stock buyback. Big tax burden to repatriate the international cash and we've expressed that disincentive to Congress.

Q: Methodology on stock splits?
A: We have looked at, and the current information that we have would suggest that there is very little support that it helps the stock. However, we are in a unique position and at a unique point in time and this is something that we continue to look at. And if we reach the decision that its in the best interest of Apple and its shareholders, then we would do it.

Q: Press release on how the new iPad did?
A: Record weekend. We are thrilled with it, but not the time during this call.

Call over.

Apple issued a media alert indicating that it would be holding a conference call on Monday, March 19th at 6 a.m. PDT/9 a.m. EDT. The conference call will "announce the outcome of the Company’s discussions concerning its cash balance."

Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, will host a conference call to announce the outcome of the Company’s discussions concerning its cash balance. Apple® will not be providing an update on the current quarter nor will any topics be discussed other than cash.

As of Q1 2012 results, Apple had $96.7 billion in cash and marketable securities, up $16 billion from the prior quarter.

Apple's growing stockpile of cash reserves has been the subject of much speculation. When questioned during the Q1 2012 results, Cook said that Apple was "actively discussing" uses of the cash balance and that they are "not letting it burn a hole in our pocket."

Following the release of the third-generation Apple TV late last week, one forum member at XBMC.org has performed a teardown of the device, revealing a number of details about its internals.

As Apple notes on the tech specs page for the new Apple TV, the device utilizes a unique single-core A5 system-on-a-chip, an upgrade from the A4 package found in the previous generation but lacking the dual-core processor found in the A5 chip used in the iPad 2 and iPhone 4S. The Apple TV teardown reveals a typical-looking A5 chip at first glance, carrying date codes suggesting it was manufactured during the seventh week of 2012, or mid-February.

The processor inside the new Apple TV's A5 package is identified as APL2498, indicating a variation on the APL0498 processor found in the standard dual-core A5. The part number for the RAM included in the chip suggests that it is a 512 MB chip from Hynix, a boost from the 256 MB of RAM found in the A4 package on the previous-generation Apple TV.

As for flash storage, the format of the part number stamped on the chip implies that it is an 8 GB part from Toshiba, meaning that the device carries the same storage capacity as found in the previous-generation model. Given that the Apple TV is a streaming-only device, on-board storage is only required to support the operating system and buffering of streaming content.

There had been some speculation that Apple could boost the on-board storage in order to handle larger 1080p content supported on the updated model, but it appears that Apple still views 8 GB as sufficient given limited increases in file size for 1080p content. Maintaining 8 GB of on-board storage undoubtedly also helps Apple maintain the $99 pricing on the Apple TV given other improvements such as the A5 chip.

Finally, the new Apple TV appears to contain a second antenna that was not present in the previous-generation model, although it is unclear exactly how the new antenna is being used to improve performance.

Dustin Curtis points out that in the latest developer seed of OS X Mountain Lion, Apple now requires OS X Apps to get explicit permission to access your address book information.

The move mirrors recent changes made to iOS which will also ask the user for permission for an App to access their contact data. The change in policy came after it was revealed that some iOS apps were quietly collecting and transmitting customer address book data without their permission.

At the time, Apple issued this statement:

“Apps that collect or transmit a user’s contact data without their prior permission are in violation of our guidelines,” Apple spokesman Tom Neumayr told AllThingsD. “We’re working to make this even better for our customers, and as we have done with location services, any app wishing to access contact data will require explicit user approval in a future software release.”

The policy now appears to extend to OS X Mountain Lion as well as iOS. Users can later manage these permissions in a new "Privacy" tab in System Preferences.

One feature promised in OS X Mountain Lion was the ability to sync Safari tabs between different devices. Macworld reported it in their Mountain Lion Preview, but was unable to actually find the feature in their early build.

And although I couldn’t find this feature in the version I tested, Apple says that Mountain Lion will bring the ability to sync Safari tabs to iCloud, so your open browser tabs can sync between Macs.

The features seems to be now implemented in the Developer Preview 2 that was released tonight. We received this screenshot which shows the feature button in Safari:

The feature is believed to sync open tabs between Macs and iOS devices, providing you with a relatively seamless browsing experience across devices.

Update: Here's an image of it working across two Macs.

Apple today seeded the second preview version of OS X Mountain Lion to developers, building upon the initial developer version released one month ago.

As noted by The Next Web, Apple has also posted an extensive list of known issues alerting developers to various bugs and missing features that have yet to be addressed.

OS X Mountain Lion is Apple's next major operating system version and is scheduled for release in "late summer". The release will offer greater integration with iCloud, as well as a number of new feature including some drawn from iOS.

Earlier today, we pointed to some teardown tidbits from Chipworks regarding the new iPad, including the observation that the A5X system-on-a-chip is being manufactured by Samsung and is using the same 45-nm process used for the A5 package in earlier devices. Also noted was a significant increase of about 36% in the area of the A5X compared to the A5.

UBM TechInsights has now started stripping down the A5X, revealing the floorplan for the package. Among the notable observations is the amount of area taken up by the quad-core graphics found in the A5X, a significant boost from the dual-core graphics found in the A5.

What should be noted is that the processor cores from ARM are identical in look but the extra real estate on the processors (the A5 measures at approx. 120 mm^2 vs. the A5X which measures at 163 mm^2) is accounted for by the the PowerVR SGX543MP4 GPU cores, of which they are paired in groups of two and then symmetrically opposed to each other.

By our calculations, the graphics cores take up roughly 25% of the A5X's surface area alone, compared to just 10% for the ARM cores that make up the application processor. The floorplan also reveals a number of other enhancements for the A5X, including additional DDR interfaces and architecture to support the boost in graphics horsepower.

Following on iFixit's disassembling of a new iPad they purchased in Melbourne, Australia yesterday, Chipworks has begun sharing the results of their iPad teardown.

The most interesting -- though perhaps unsurprising -- discovery is that Apple has apparently reused cameras from prior products for both the front and rear cameras on the new iPad. The rear camera, pictured above, appears to be the same 5 megapixel CMOS Image Sensor that was used in the iPhone 4.

That unit was the Omnivision OV5650. The OV5650 is the second generation back illumination (BI) technology from OmniVision. This 5 Mp camera features 1.75 µm pixels, and is designed to deliver DSC quality in a mobile phone application. The sensor supports HD (1080p) video at 60 fps. Apple specifications for the new iPad also tout the same specification. So the analysis we have just completed… drum roll please... says that the 5 Mp back illuminated CMOS Image Sensor in the new iPad is the same, it is the Omnivision OV5650 (die mark OV290BF).

The front camera in the new iPad is the 0.3 megapixel Omnivision OV297AA unit seen previously in the iPad 2 and the old camera-equipped iPod Nano. Chipworks notes that this isn't the first time Apple has recycled parts into new products, and that the strategy keeps costs and technological risks low.

Chipworks has a few other notes from the teardown, as well, including the observation that Apple is dual-sourcing DRAM for the iPad 3. iFixit's unit utilized DRAM from Elpida, while Chipworks' unit has DRAM from Samsung.

Additionally, Samsung is the foundry for the A5X processor and Apple is again using the company's 45nm CMOS manufacturing process. The A5X's die is 36.5% larger than its predecessor, measuring 162.94 mm^2 versus 119.32mm^2 for the A5. Chipworks is continuing to examine the A5X and promises additional cross-section photos soon.

Back in January, popular radio show This American Life aired an episode dedicated to working conditions at Foxconn's factories in China, drawing heavily from Mike Daisey's theater monologue entitled "The Agony and Ecstasy of Steve Jobs". In the monologue, which has been a notable part of the push to address working conditions at Apple's suppliers, Daisey relates tales from his visit to China where he met with Foxconn workers.

In a remarkable reversal, This American Life has now announced that it is retracting its January broadcast of Daisey's content, citing a number of fabrications discovered in a follow-up investigation on his claims.

The China correspondent for the public radio show Marketplace tracked down the interpreter that Daisey hired when he visited Shenzhen China. The interpreter disputed much of what Daisey has been saying on stage and on our show. [...]

Daisey lied to me and to This American Life producer Brian Reed during the fact checking we did on the story, before it was broadcast. That doesn't excuse the fact that we never should've put this on the air. In the end, this was our mistake.

An accompanying press release relates a number of Daisey's claims that were shown to be false, from claims of having met workers injured by use n-hexane to an anecdote in which he described meeting a man who had had his hand mangled in equipment while producing the iPad and showing the man a functional iPad for the first time.

Daisey reportedly lied to This American Life's staff when asked for contact information for the interpreter he used during his travels, but once the interpreter was found through other means his story began to come apart.

For his part, Daisey acknowledges that some of the information he presented was not entirely truthful, arguing that his monologue was created for theater. Consequently, he agrees that it should not have been presented as journalism, although he stands behind the intent of his work.

I stand by my work. My show is a theatrical piece whose goal is to create a human connection between our gorgeous devices and the brutal circumstances from which they emerge. It uses a combination of fact, memoir, and dramatic license to tell its story, and I believe it does so with integrity. Certainly, the comprehensive investigations undertaken by The New York Times and a number of labor rights groups to document conditions in electronics manufacturing would seem to bear this out.

What I do is not journalism. The tools of the theater are not the same as the tools of journalism. For this reason, I regret that I allowed THIS AMERICAN LIFE to air an excerpt from my monologue. THIS AMERICAN LIFE is essentially a journalistic ­- not a theatrical ­- enterprise, and as such it operates under a different set of rules and expectations. But this is my only regret. I am proud that my work seems to have sparked a growing storm of attention and concern over the often appalling conditions under which many of the high-tech products we love so much are assembled in China.

This American Life is devoting the entirety of this week's episode to discussion of the fabrications present in the original report.

Update: Marketplace's Rob Schmitz has written an article addressing his efforts to investigate Daisey's claims.

One of the major selling features of the new Verizon iPad Wi-Fi + 4G LTE is its compatibility with GSM networks for international roaming purposes. But what hasn't been clear is whether users could insert an AT&T micro-SIM card into a Verizon iPad and receive data connectivity. Given that the Verizon iPad supports the same GSM frequency bands for non-LTE networks as the version sold for AT&T, it appeared to be technically possible to use a Verizon iPad on AT&T although Apple could have opted to restrict the device's operation on other networks.

As noted by jsnuff1 in our forums, the new Verizon iPad does indeed work on AT&T's network when equipped with an AT&T micro-SIM and the device's carrier settings are updated to support connecting to AT&T.

Big question on everyone's mind buying the Verizon iPad was whether data from AT&Ts 3G network would work on this iPad, or if Verizon/Apple would block this.

I was one of the first to obtain a Verizon iPad and can happily confirm that this is allowed! I used my ATT iPhone 4S sim card and took out the Verizon sim, and data worked! You must apply the AT&T APN carrier settings before this works though.

It is important to note, however, that a Verizon iPad will be limited to non-LTE bands (EDGE, 3G, HSPA+ 4G) on AT&T. The Verizon iPad hardware supports only the 700 MHz band for LTE to match the carrier's technology, while the GSM version sold for use on AT&T's network supports both the 700 MHz and 2100 MHz bands as used by that carrier.

Initial pre-orders of the new iPad are arriving today, while retail outlets in ten countries are offering in-store purchase for those still looking to purchase an iPad on launch day.

Claims of redesigned MacBook Pro models continue to surface ahead of the official launch of Intel's Ivy Bridge chips, and Digitimes now reports that slimmer versions of the 13-inch and 15-inch MacBook Pro are currently in production. Notably, the report claims that the MacBook Pro line will remain distinct from the MacBook Air line, with the new MacBook Pro models losing their optical drives but retaining more advanced specs than seen in the MacBook Air.

The MacBook Pro will no longer have an optical drive enabling thinner designs, the sources indicated. Despite the slim profile, the new devices will feature more advanced specs than the MacBook Air in terms of CPU performance and storage capacity, the sources said.

Production for the next-generation MacBook Pro has already begun with shipments to Apple kicking off in March, the sources noted. Monthly shipments will eventually climb to 900,000 units from the 100,000-150,000 units targeted initially, the sources said.

The report is very similar to one issued by Digitimes several weeks ago, but the new report offers the explicit claim that production on the new models has indeed begun.

For roughly a year we've been hearing word that Apple was working on a slimmer form factor for the MacBook Pro. Rumors have continued to pile up since that time, with some suggesting that Apple might gradually unify its notebook line with the release of a 15-inch "MacBook Air" in the near future being followed by a similar 17-inch model a few months later. But rumors have been split on whether Apple's larger notebooks would become true MacBook Airs or if they would retain the MacBook Pro name and more advanced specs while still adopting some of the MacBook Air design aesthetics.

The 3rd Generation iPad continues to launch around the world to long lines in many locations. The iPad is launching in ten countries including the US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore, Switzerland and the UK.

Paris was the most impressive line photo we received. This photo at approximately 10pm local time showed hundreds lined up at Apple's Store in Paris. (Thanks Matthew)

Houston's new Highland Village Apple Store is being unveiled overnight just in time for the iPad 3 launch. (Thanks Matthew)

The U.S. got an early launch at Wal-Mart stores which started selling at 12:01 AM local time. From the few reports we received, lines and stock were relatively small. (Thanks Lee)

Finally, despite launch day availability, there are scalpers in Hong Kong already, looking to take advantage of any short supply. (Thanks Andy)

Those who pre-ordered the new iPad early enough should start receiving them on Friday. The new iPad will also be available in Apple Retail, Wal-Mart as well as Verizon and AT&T stores.