Apple CEO Tim Cook has spoken out on the company’s tax practices prior to his scheduled testimony at a Senate hearing next Tuesday. Under pressure over Apple keeping more than $100 billion overseas, Cook told Politico that the company has acted legally. “I can tell you unequivocally Apple does not funnel its domestic profits overseas,” said Cook, “We don’t do that. We pay taxes on all the products we sell in the U.S., and we pay every dollar that we owe. And so I’d like to be really clear on that.” Like many companies, Apple allegedly keeps money overseas to avoid paying high U.S. taxes. Cook noted that Apple is one of the largest U.S. taxpayers — the company paid almost $6 billion in taxes in the 2012 fiscal year. Interestingly, it’s expected that Cook will share Apple’s ideas for comprehensive tax reform at Tuesday’s testimony. [via Politico]
Apple has released iTunes 11.0.3, adding a new MiniPlayer, improved Songs view, and support for multi-disc albums. A greater emphasis has been put on allowing users to showcase album artwork in the redesigned MiniPlayer and Songs view, and the MiniPlayer now includes a built-in progress bar.
In addition, users with multiple disc albums can now have them appear as a single album. Apple also notes that the update provides performance improvements for working with large iTunes libraries.
A newly published Apple patent application reveals a system whereby one iOS device could control the flashes on other devices to better light a scene for photos. The method would allow an iPad, iPhone or iPod touch to use the flashes on multiple other iPhones, for instance, by initiating a master-slave connection. A signal can be sent from the primary device to the secondary devices to adjust timing, intensity, duration, or flash angle.
As described in the filing, instructions sent from the primary device could be displayed as text on the secondary device’s screen. The devices could also be paired using Bluetooth to trigger the flash at the right time. [via Apple Insider]
Apple’s App Store today reached 50 billion downloads, as noted by the end of the official countdown. As the site says, “The grand prize winner will be announced soon. Stay tuned.”
The person who downloaded the 50 billionth app will win a $10,000 App Store Gift Card. The next 50 people who downloaded an app after that will win a $500 App Store Gift Card.
Update: Apple announced the winner as Brandon Ashmore from Mentor, Ohio. The 50 billionth app downloaded was Say the Same Thing by Space Inch, LLC. Ashmore gets a $10,000 App Store Gift Card for his download.
In response to a U.S. Justice Department court filing alleging that Apple engaged in a price-fixing scheme with book publishers, Apple claims that it acted legally, and negotiated different agreements with the publishing companies. A filing from Apple says that the publishers decided on their own to eliminate wholesale e-book discounts and take other steps in an attempt to get Amazon to raise its prices. Additionally, Apple’s filing describes tough negotiations with the publishers. “Apple did not conspire to fix eBook pricing,” Apple spokesman Tom Neumayr said in an email.
The DOJ, however, cites statements former Apple CEO Steve Jobs made as evidence of conspiracy — the evidence includes an email sent to the CEO of a publisher’s parent company and a statement made to Jobs’ biographer. Apple remains the only entity in the suit that has not settled since the case started in April 2012 — all publishers involved have settled with the Justice Department. [via Reuters, Bloomberg]
A class action lawsuit has been filed against Apple for iPhone 4s with defective power buttons. Filed by a Florida woman, the suit claims Apple knew about a flex cable defect controlling the power button but kept quiet about the problem to sell more phones. Apple discussion forums regarding the power button are cited as evidence. The lawsuit claims that the part often fails after the phone’s one-year warranty expires. [via GigaOM]
Blackberry has announced that its BBM messaging service will be released as a free iOS app this summer, complete with support for iOS 6 and above. BlackBerry CEO Thorsten Heins said the release of BBM on other platforms is a “statement of confidence,” and noted that the free app is expected to include messaging and groups at launch, with voice, screen share, and channels to be added later. As noted in a press release, BBM for iOS depends on Apple approval. [via The Verge]
In a quiet server-side update, Apple has given Siri the ability to respond to requests with quotes, notably to suggest that the user is being too long-winded. When asking the assistant a question — presumably one that Apple’s servers find too long or difficult to parse — Siri responds with William Strunk and Thomas Jefferson quotes alluding to brevity. Notably, the thirty-word Strunk quote itself takes several seconds for Siri to read aloud, and in one case was delivered in the middle of dictation.
The Strunk and Jefferson quotes appear to have been added to Siri over the last week and a half, and represent a new direction for Apple’s virtual assistant. Rather than just recognizing or failing to recognize a user’s natural speech, Siri now appears to be using quotations to change the user’s speaking patterns.
New York Attorney General Eric Schneiderman sent a letter today to Apple CEO Tim Cook — as well as the CEOs of Microsoft, Google, and Samsung — regarding the growing theft of electronic devices such as iPhones. Citing an increase in the theft of Apple products in New York City, Schneiderman argues that Apple and other companies need to do more to combat theft, a topic previously raised by San Francisco District Attorney George Gascón. As Schneiderman wrote to Cook, “In particular, I seek to understand why companies that can develop sophisticated handheld electronics, such as the products manufactured by Apple, cannot also create technology to render stolen devices inoperable and thereby eliminate the expanding black market on which they are sold. I would be especially concerned if device theft accrues to your company’s financial benefit through increased sales of replacement devices.”
Schneiderman also writes that though Apple presents itself as concerned about safety, “…Apple may have failed to live up to these representations, limiting its focus to information security, without providing safeguards that would truly deter theft and thereby protect the safety of your customers.” These crimes, sometimes referred to as “Apple picking,” have been getting more attention recently. San Francisco’s Gascón pushed for Apple to make a “kill switch” to render stolen phones inoperable, but met with resistance from the company’s representatives. As legal pressure mounts, Apple and other companies may be pushed toward a resolution on device thefts in the future.
Apple’s countdown to 50 billion App Store downloads is nearing its end. At the current download rate depicted by Apple’s web site counter, the 50 billionth app should be downloaded at some point in the next two days; however, it’s unclear how accurate the counter is, and whether the speed will accelerate as the milestone draws nearer.
The person who downloads the 50 billionth app will win a $10,000 App Store Gift Card, and the next 50 people to download an app will win a $500 App Store Gift Card.
Apple informed staff at a recent town hall session that major changes would be coming to the AppleCare and AppleCare+ programs this fall, according to a report. Many of the changes will apparently focus on in-house repairs — instead of exchanging an iPhone, iPod, or iPad for a new device, Apple will repair the same device and return it to the customer. Apple Stores will reportedly have the ability to replace displays by June, and to repair cameras, sleep/wake buttons and logic boards by July. Advanced diagnostic tools to remotely assess hardware issues will also be available. It’s unclear whether this new system will lengthen initial turnaround times for customers, who were previously able to walk into Apple Stores and swap devices quickly, though repaired units might not require time-consuming content restoration.
AppleCare may introduce a new tier for consumers, instead of specific products, and offer in-store training for customers. There’s also a possibility that AppleCare will be reconfigured as a subscription model. Additionally, free support for the iPhone may jump from 90 days to one year without buying AppleCare. Apple Vice President Tara Burch announced the changes, which would come to the U.S., then the rest of the world, reportedly under the “One Apple” brand — though it’s unclear if “One Apple” is an internal or marketing term. [via Apple Insider]
Apple has created a waiting list to decrypt iPhones seized by police, due to high demand. A new report notes a case in which the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) had to wait for Apple to assist in unlocking the device of a man accused of distributing crack cocaine. According to the search warrant affidavit of an ATF agent, numerous law enforcement agencies do not have “the forensic capability” of unlocking an iPhone. Reportedly, the agent was told there would be at least a seven-week delay to unlock the phone, but the process apparently took at least four months. [via CNET]
Despite a report last month that Apple was close to making the deals necessary to move forward with the company’s streaming music service, a new report notes Apple is still discussing royalties. Universal Music is reportedly on board, and Warner Music is close, but Apple is still negotiating with Sony Music. Sources say Apple raised its royalty offer of 6 cents per 100 songs streamed up to 12.5 cents per 100 songs — the same rate as Pandora — but it’s unknown if Universal accepted that rate.
Some music executives argue Apple should pay a higher rate than Pandora due to its “broader ambitions” for iRadio, including the use of prediction data from iTunes users and a seamless plan to purchase songs through iTunes. Apple is reportedly offering revenue to labels through streaming royalties and advertising, while offering a guaranteed minimum sum as a safety net in case the revenue streams disappoint. [via Financial Times]
Apple won a lawsuit on Wednesday over the use of the term “iBooks” as Black Tower Press, which sued Apple in 2011, was ruled not to have exclusive rights to the term. Black Tower Press, a small publisher, owned the “ibooks” mark, but never obtained a registered trademark. U.S. District Judge Denise Cote explained “ibooks” only described books sold on the Internet, and wrote that consumers would not confuse Apple’s iBooks with the term used by Black Tower Press. [via GigaOM]
Multiple reports have noted a surge in mobile traffic from devices using iOS 7 recently, as Apple’s Worldwide Developers Conference is now about a month away. Notably, there’s been a reported rise in usage from iOS 7 iPhones and iPads in the Cupertino and San Francisco areas. Increased testing suggests Apple will have a public preview of iOS 7 available for developers at the conference, as many already expect. [via MacRumors, TechCrunch]
During its patent infringement lawsuit against Samsung, Apple is attempting to force Google to turn over documents related to the Android operating system. In a court filing, Apple argued that Android is used in all of the allegedly infringing products from Samsung, and the operating system “provides much of the accused functionality” in Apple’s claims. Apple claims Google is improperly withholding information about the terms it’s using to locate documents that Apple requested. “It’s a question of transparency,” Apple lawyer Mark Lyon said. “We have concerns that they’re not doing a full search.” [via Bloomberg]
A German court has told Apple to change customer data rules, according to a consumer group that has noted on its website that eight of 15 provisions in Apple’s data-use terms were struck down. Apple cannot ask for “global consent” to use customer data or use the location information of customers. The ruling only applies in Germany — however, a U.S. judge ruled in March that Apple must submit “a detailed account of how it collects and evaluates” documents, and the company may face court-ordered penalties over its practices. The U.S. lawsuit alleges Apple collected data from millions of devices without permission. [via Bloomberg]
Apple’s largest manufacturing partner, Foxconn, is reportedly undergoing a new shift in strategy to reduce its reliance on Apple. Recently, the company reported that its first quarter revenue was down 19.2 percent compared to last year, due to declining iPad and iPhone orders. “The decline in the business of our partners, such as Apple and Nokia, does affect us,” Foxconn spokesman Simon Hsing said. “We don’t want to just wait for orders. We are actively talking with many clients and asking if they can fully utilize what we make.” Some estimate the Taiwan-based Foxconn receives at least 40 percent of its revenue from Apple. Foxconn is looking to develop products of its own, with an “especially aggressive push” into large TVs. The company recruited Vizio to sell their TVs in the U.S., as Foxconn apparently doesn’t want to market its own brand. Apple declined to comment on the story. [via The New York Times]
Fortune has released this year’s Fortune 500, its annual ranking of America’s largest corporations, and Apple has cracked the top ten for the first time. Despite well-publicized issues that have deflated the company’s stock value, Apple rose to 6th on the list, up from last year’s rank of 17th. Though Fortune notes “Apple is bigger than ever,” the company’s overview also says last October’s product announcements “maintained more than disrupted,” while CEO Tim Cook’s apologies for Apple maps and Chinese repairs are also cited in the brief summary.
Thanks in part to Apple’s switch to more expensive Lightning connectors, as well as the ascendance of Bluetooth wireless connectivity, Apple’s grip on accessory makers is starting to slip, according to a New York Times report. While many retail stores and hotel rooms previously featured Dock Connector accessories, the market has expanded and broadened, reducing Apple’s presence. A number of accessory makers expressed frustration with the Lightning connector transition, as companies were not notified of the change in advance, and fees for both licensing and manufacturing have gone up. Consequently, accessory makers opted to leave Apple docks out of their products; Logitech, Voxx, and Geneva Lab told the Times that they’ve dropped physical Apple connectors from most or all of their products.
For its part, Apple says it doesn’t mind accessories continuing in a more wireless direction. Apple spokesman Tom Neumayr said, “Apple provides users with the best wired and wireless connectivity options to work with the broadest range of accessories.” Still, sales of speakers with docks dropped 16% in 2012, while sales of wireless streaming speakers jumped 175%, according to an NPD Group report.