MacRumors

Last month, we noted as part of a report on an update to the anti-malware tools in OS X that a new trojan horse threat known as Flashback.A had surfaced, with the malware masquerading as a Flash Player installer. While Apple has continued to update its XProtect.plist to detect Flashback.A, security firm F-Secure now reports (via ZDNet) that a revised version of the trojan which disables the auto-updating feature of Apple's anti-malware tools has appeared.

There's something new brewing in Mac malware development (again).

Recent analysis has revealed to us that Trojan-Downloader:OSX/Flashback.C disables the automatic updater component of XProtect, Apple's built-in OS X anti-malware application.

The report walks through how the modified trojan overwrites XProtectUpdater files, preventing infected systems from performing their daily check for updated malware definitions and thus keeping the door open for future attacks.

The Flashback.C trojan is capable of connecting to a remote host in order to download and execute further code, but it is unclear what the exploit is being used for at this time. Users are of course advised to download Flash Player and other software from trusted sources so as to avoid infecting their systems with trojans such as Flashback.C.

Update: MacRumors has heard and Sophos has confirmed that Apple had already updated its XProtect.plist entries to detect Flashback.C by the time news of it broke to the public. Consequently, users encountering the malware on Mac OS X Snow Leopard or OS X Lion should be automatically warned of the threat prior to mounting the package.

Apple yesterday quietly updated its iPhone 4S tech specs page to note that the device offers not only Assisted GPS but also GLONASS, the Russian version of GPS.

Just two weeks ago, Russia launched the last of 24 satellites required for global location coverage, setting the stage to restore GLONASS to its full operational status that had been lost amid economic turmoil in the country during the late 1990s.

Far from being a Russia-only service, some current global positioning hardware and software is capable of utilizing both GPS and GLONASS satellite information to provide more accurate geolocation information with faster acquisition times. We have reached out to Apple for comment on whether the iPhone 4S can in fact take advantage of satellites from both systems on a worldwide basis, as it is unclear from the tech specs whether this is the case, but have yet to receive a response.

Notably, only the tech specs page on the U.S. site has been updated to mention GLONASS capabilities, with the corresponding page in other iPhone 4S launch countries still listing only Assisted GPS as the device's satellite location service.

(Thanks, Jesse Perry!)

While Sprint made waves in becoming the third U.S. carrier to offer the iPhone with the launch of the iPhone 4S, it appears that Apple will be broadening distribution even further to include smaller carriers as well. Regional carrier C Spire Wireless, formerly known as Cellular South, today announced that it will begin offering the iPhone 4S in the coming weeks.

C Spire Wireless announced today that it will launch iPhone 4S, the most amazing iPhone yet, in the U.S. in the coming weeks.

For further information or to register interest, please visit www.cspire.com/iphone. For more information on iPhone 4S, please visit www.apple.com/iphone.

C Spire, which operates a CDMA cellular network like Verizon and Sprint, is the largest private wireless telecommunications provider in the United States with approximately 875,000 customers. While C Spire's subscriber base pales in comparison to those of AT&T, Verizon, and Sprint, the carrier's offering of the iPhone 4S signals a distinct shift by Apple to open up the iPhone to even more customers by reaching agreements with smaller carriers.

C Spire Wireless is based in Ridgeland, Mississippi and focuses its service on Mississippi, parts of Alabama and the Florida Panhandle, and the Memphis, Tennessee and Rome, Georgia areas.

Amid an ever-increasing intellectual property dispute involving Apple's mobile devices and Samsung's Android-based hardware products, rumors have claimed that Apple has been seeking to reduce its reliance on Samsung as the major component supplier for iOS devices. But even if Apple does switch to new suppliers for some components, such as TSMC for future A-series chips, Samsung will almost certainly continue to play a role in Apple's mobile hardware designs.

As reported by Yonhap News, Apple and Samsung are indeed exploring long-term component supply relationships, plans advanced in part by discussions earlier this week between Apple CEO Tim Cook and Samsung Chief Operating Officer Lee Jae-yong.

Lee Jae-yong, chief operating officer (COO) of Samsung Electronics said Wednesday he had discussed long-term parts cooperation arrangements with Apple Inc.'s chief Tim Cook.

The meeting took place Monday after Lee attended a memorial service for Steve Jobs, Apple's late co-founder, and as Samsung and Apple remain locked in fierce legal disputes to control the global smartphone and tablet computer markets.

Lee noted that Samsung and Apple are locked into supply agreements for 2012 and are exploring how to push technology forward through the 2013–2014 timeframe.

Upon arriving at a Seoul airport, Lee, the only son of Samsung Electronics Chairman Lee Kun-hee and heir apparent to South Korea's largest family-owned business group, told reporters his company will continue to sell parts to Apple until 2012. Apple is one of Samsung's most important buyers and single largest semiconductor customer.

"For the 2013-2014 period, we discussed how best to supply even better parts," he said, adding that during the more than two-hour meeting, the businessmen touched on past challenges and how to promote good relations in the future.

Apple has been keen to lock in long-term supply commitments with component suppliers, sometimes prepaying billions of dollars in advance to secure massive supplies looking over several years. Apple's strategy gives it leverage in supply negotiations, helps fend off competitors seeking to source components for their own devices, and results in partnerships to push technology forward.

Lee declined to specifically discuss whether any progress was made Monday on patching up the relationship between the two companies, which are both in the tenuous position of relying on the other in component contracts even as they wage fierce battles in courts around the world. Samsung noted last month that it had been relatively "passive" in the legal dispute out of respect for the company's supply relationship with Apple, but that it would be stepping up its attacks on Apple for "free riding" on Samsung's intellectual property.

Apple has updated their Steve Jobs page on their site to reflect many memories, thoughts and feelings that people have submitted about Steve Jobs since his passing.

Over a million people from all over the world have shared their memories, thoughts, and feelings about Steve. One thing they all have in common — from personal friends to colleagues to owners of Apple products — is how they’ve been touched by his passion and creativity. You can view some of these messages below.

And share your own at rememberingsteve@apple.com

Apple reports that over a million people have already shared their thoughts. The company is still soliciting thoughts by email.

Steve Jobs has seen an outpouring of support and tributes since his passing on October 5th. Apple Stores around the world have turned into makeshift memorials as fans have left flowers and notes in his memory.

Jobs was 56 years old, and had been struggling with complications related to pancreatic cancer over the past several years. Apple will be holding a privatecompany wide celebration of Steve Jobs' life on Wednesday, October 19th. The event will take place on Apple's campus in Cupertino. Apple Retail stores will be closed for several hours during the event so that employees may view a live webcast of the service.

It's a frequent parlor game amongst Apple analysts and watchers to guess and suggest and hypothesize what Apple should do with its huge and growing cash reserves. As of September 24, 2011, Apple is sitting on $81.57 billion in cash. Apple added $5.4 billion to its cash reserves in the last 3 months, and that would have been significantly higher if, as Horace Dediu points out, not for the more than 6,000 Nortel patents Apple purchased the rights to.

To be more precise, Apple CFO Peter Oppenheimer oversees $9.815 billion in cash and cash equivalents, $16.137 billion in short-term marketable securities, and $55.618 billion in long-term marketable securities. In the earnings call with analysts this afternoon, Apple CEO Tim Cook said the cash wasn't "burning a hole in our pocket" and that the company invested very conservatively and didn't want to do "silly things" with the money.

Cook noted that in recent months Apple had acquired several companies, acquired intellectual property, invested in the supply chain, and invested in new stores. In his first comments as CEO about the cash pile Cook said he wasn't "religious about holding or not holding cash," but Apple would continually ask ourselves what is in Apple's best interest and act accordingly.

"It's a topic for the board on an ongoing basis and we will continue to discuss it," Cook said in response to an analyst question. Apple CFO Peter Oppenheimer jumped in after Cook was finished answering the question, to point out that more than two-thirds of Apple's $81 billion cash pile was sitting offshore.

The question of offshore cash is an important one, as explained by Reuters:

The U.S. government taxes U.S. businesses on income earned worldwide, but allows them to defer taxes on the money until it is brought back to the United States. As a result, American corporations like to keep the money abroad, particularly as they increase investment overseas.

A number of companies, led by Apple, Google and Cisco have been pushing for a tax holiday on overseas cash holdings to allow the companies to repatriate the money to the United States tax-free.

One of the high points of Apple's earnings for the fourth fiscal quarter of 2011 was Mac sales, which came in well above expectations at a record 4.89 million units. On the earnings conference call, Apple CEO Tim Cook noted that the strong sales were "almost unbelievable" considering continued growth in the iPad market.

Cook noted that some customers are undoubtedly electing to purchase iPads instead of Macs, eating somewhat into potential Mac sales. But as Apple has noted several times since the introduction of the iPad, Apple still holds only a small part of the PC market and that cannibalization of Windows PCs by the iPad opens up a tremendous opportunity for the company.

Apple's previous record for quarterly Mac sales came in the first fiscal quarter of this year with 4.13 million units shipped, making this quarter's performance 18% higher than that record. Given the Apple's Mac sales typically increase sequentially for the holiday quarter each year, Apple should also be well-positioned for another strong performance on the Mac side to close out the calendar year.

While Apple's iPhone sales for the fourth fiscal quarter fell short of expectations at 17.07 million units, Apple CEO Tim Cook noted during the company's conference call that it expects to hit all-time record iPhone sales in the current quarter on the strength of the iPhone 4S.

Cook noted that iPhone sales declined somewhat sequentially as rumors regarding a new model circulated. iPhone sales dropped by 2.4 million sequentially on a sell-through basis, which was actually less than the company had anticipated. Unsurprisingly, the reduction was most significant in the second half of the quarter as speculation surrounding the iPhone 4S "hit extreme highs". That pent-up demand led to a strong launch for the iPhone 4S, with Apple selling over four million units in the opening weekend.

iPhone rumors had been at a fever pitch for many months as Apple missed its usual June introduction of new hardware. Compounding the effect were persistent rumors of a dramatically redesigned "iPhone 5" offering a larger but thinner design than the current iPhone. Whether those iPhone 5 design rumors were incorrect or based on a design still in the works for a future model remains unknown, but the iPhone 5 was ultimately not released during this product cycle as Apple elected to remain with the iPhone 4 design as it launched the iPhone 4S.

Cook also expressed confidence in Apple's rollout plans for the iPhone 4S, with the device already available in seven countries and an additional 22 countries coming online by the end of this month. Record iPhone sales for the current quarter would come in above the 20.34 million units set in the third fiscal quarter (second calendar quarter) of this year. Apple has already issued strong guidance of $37 billion in total revenue for the current quarter, and with the iPhone making up the largest chunk of Apple's revenue, the company is clearly expecting strong sales at least through the end of the year.

Apple today announced financial results for the third calendar quarter and fourth fiscal quarter of 2011 -- plus the full fiscal year. For the quarter, Apple posted revenue of $28.27 billion and net quarterly profit of $6.62 billion, or $7.05 per diluted share, compared to revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share, in the year-ago quarter. Gross margin was 40.3 percent, compared to 36.9 percent in the year-ago quarter, and international sales accounted for 63 percent of the quarter's revenue. Apple now has $81.57 billion in cash and marketable securities.

For the 2011 fiscal year, Apple reported revenue of $108.25 billion and net profit of $25.92 billion, or $27.68 per diluted share, compared to revenue of $65.23 billion and a net profit of $14.01 billion, or $15.15 per diluted share, in fiscal 2010. Gross margin for the year was 40.5 percent, compared to 39.4 percent a year ago. Apple's yearly profit and revenue were company records with Apple reporting more than $100 billion in yearly revenue for the first time ever.

Apple shipped 4.89 million Macintosh computers during the quarter, a unit increase of 26 percent over the year-ago quarter. Quarterly iPhone unit sales reached 17.07 million, up 21 percent from the year-ago quarter, and the company also sold 6.62 million iPods during the quarter, representing 27 percent unit decline over the year-ago quarter. Apple also sold 11.12 million iPads during the quarter, up 166 percent over the year-ago quarter.

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”

Apple's guidance for the first quarter of fiscal 2012 (the holiday quarter) includes expected revenue of $37 billion and earnings per diluted share of $9.30.

Apple will provide live streaming of its Q4 2011 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Mac sales, at 4.89 million units in the back-to-school quarter were well higher than even the highest analyst expectations, while iPads met expectations. iPods were slightly worse than expected. However, the biggest miss was on the iPhone with 17.07 million units moved, well below the consensus analyst estimate of 19.75 million. Only two analysts underestimated Apple's iPhone sales, with Charlie Wolf at Needham and Chris Whitmore at Deutsche Bank both expecting 17 million iPhone units on the quarter.

Apple missed estimates on earnings for the first time since 2004.

Conference Call Highlights:

➜ Click here to read rest of article...

Philip Elmer-Dewitt has put together his list of analyst expectations ahead of Apple's quarterly earnings report this afternoon. The list includes estimates from 16 "independent" analysts and 42 "affiliated" analysts who work for large investment houses or research organizations.

As usual, the independent analysts are much more bullish than the affiliated analysts. The independent consensus expects earnings per share (EPS) of $9.07 on revenue of $33.47 billion. The institutional consensus is EPS of $7.31 on $29.45 billion in revenue.

Click through to Elmer-DeWitt's post at Fortune to see the full-size chart.

Apple will announce its earnings for the fourth fiscal quarter of 2011 (third calendar quarter) and host a conference call regarding the release this afternoon at 5:00 PM Eastern / 2:00 PM Pacific. The earnings release itself typically comes in around 4:30 PM Eastern.

Last quarter the company announced record-breaking results in a number of areas, including $7.31 billion in profit on revenue of $28.57 billion. For the fourth fiscal quarter, Apple has issued guidance of $25 billion in revenue with profits of $5.50 per share.

Since the iPhone 4S debuted on Sprint on Friday, a number of the carrier's customers have been complaining of slow data speeds. While the issues are not universal for iPhone users on Sprint, they do seem to be affecting a substantial number of customers.

PCMag.com now reports that Sprint has issued a statement on the issue, characterizing the complaints as a "small number of reports" that the carrier is looking into.

"As always, Sprint is carefully monitoring the performance of the 3G network. We are looking into a small number of reports of slow data speeds when using the iPhone 4S, however there are also reports showing that Sprint’s network is the fastest, such as the Gizmodo report that came out earlier today. Speed tests represent a moment in time and are subject to many variables including weather, time of day, device, and proximity to a tower. Sprint will continue to monitor the feedback we are getting from our customers and will investigate and resolve any issues that may arise," the company said in a statement.

As the report notes, it is unclear exactly what Gizmodo report Sprint is referring to as supporting its case, as the site's informal speed test survey is indeed showing dramatically slower average data speeds for Sprint compared to AT&T and Verizon.

PCMag.com also notes that Sprint has already been measured to have the slowest real-world 3G network speeds of the three iPhone carriers in the United States, and thus the iPhone itself may not be having a significant effect on the carrier's network. And with some customers perhaps being new to Sprint with the iPhone, they may have been unaware of the carrier's network speeds.

Taiwan's United Daily News reports [Google translation] that Apple has received samples of 7.85-inch screens carrying the same 1024x768 resolution of the current iPad. The report (via Unwired View) claims that AU Optronics and LG Display have sent samples of the display to Apple, which is reportedly targeting a launch for the "iPad mini" early next year.

It is unclear how Apple and its developers would handle a considerably smaller screen for this iPad mini at the same resolution as the current iPad. While maintaining the current resolution would mean that iPad apps would display natively on the iPad mini, the interface elements would be somewhat smaller than on the iPad, a reduction that could introduce usability issues in some cases.

Steve Jobs had also famously panned 7-inch tablets from competitors, claiming that roughly 10 inches was the minimum screen size needed for a useful tablet.

Apple has been said to be interesting in fending of Amazon's new Kindle Fire tablet, which is launching next month at a $199 price point. Ticonderoga Securities analyst Brian White had noted just last week that his research among Asian suppliers is indeed pointing toward Apple releasing an "iPad mini" early next year to take on the Kindle Fire. White cautioned, however, that the "mini" moniker was in reference to the device's price rather than necessarily meaning a smaller device.

Regarding Apple, our research is pointing to the unveiling of a lower priced iPad in the first few months of 2012 that is aimed at expanding the company’s market potential by tapping into a more price sensitive consumer segment. Essentially, this “iPad mini” will also fend off the recently announced Amazon Kindle Fire that addresses the low-end tablet market with a $199 price tag but could lead to bigger tablet ambitions from the online retailer in the future. The "mini" refers to a reduced price point of this iPad and not necessarily the size of the device. We believe this lower priced iPad could be priced in the mid-to-high-$200 range.

Apple is widely rumored to be preparing to introduce the iPad 3 early next year, a device which is said to carry a Retina display with 2048x1536 resolution. A smaller iPad at the lower resolution of the current iPad could enable Apple to lower entry-level price points for its tablet products if it does indeed view Amazon as a significant threat.

Last month, word surfaced that popular file storage and sharing service Dropbox may have declined an $800 million acquisition offer from Apple, instead deciding to remain independent and raise its own financing.

A new profile of Dropbox appearing as the cover story for a forthcoming issue of Forbes reveals that Apple did indeed pursue Dropbox, with Steve Jobs personally meeting with Dropbox founders Drew Houston and Arash Ferdowsi amid the possibility of a "nine-digit" deal.

“I mean, Steve friggin’ Jobs,” remembers Houston, now 28. “How do you even prepare for that?” When Houston whipped out his laptop for a demo, Jobs, in his signature jeans and black turtleneck, coolly waved him away: “I know what you do.”

As Jobs made his pitch for Dropbox, Houston cut things short, telling Jobs that Dropbox was not interested in being acquired.

Jobs smiled warmly as he told them he was going after their market. “He said we were a feature, not a product,” says Houston. Courteously, Jobs spent the next half hour waxing on over tea about his return to Apple, and why not to trust investors, as the duo—or more accurately, Houston, who plays Penn to Ferdowsi’s mute Teller—peppered him with questions.

Jobs reportedly attempted to follow up with Dropbox after the initial meeting, suggesting a second meeting at Dropbox's headquarters. But when Houston said that he preferred to meet elsewhere, so as to not give Jobs personal insight into Dropbox's operations, Jobs went silent. Apple of course introduced iCloud, its own syncing solution, earlier this year and went live with the service just last week.

Computerworld reports that the shutdown of a Chinese manufacturer may affect inventories of Apple's MacBook Pro and MacBook Air notebooks.

Taiwanese company Catcher Technology has had to temporarily close down a factory in eastern China due to complaints of a "strange odor" coming from the building. Catcher is said to be responsible for 60% of Apple's uni-body aluminum casings for Apple's notebook line. In a statement, Catcher admitted that customer supplies would be affected.

"Shipments to our customers will inevitably be affected. We already asked them to make adjustments to their (casings) procurement," Catcher President Allen Horng told a news conference.

It's not clear when the plant will resume full operations. Apple obtains the other 40% of its case supply from Foxconn.

The timing is unfortunate as we've been hearing rumors that Apple was planning on a small MacBook Pro refresh as early as this week. Rumors had suggested a processor bump was due late this year, and new part numbers have suggested an imminent launch.