Apple and Foxconn will share the initial costs of improving labor conditions at the latter’s factories. Reuters reports that Foxconn chairman Terry Gou did not give a figure for the costs, but did way that he regards recent criticism of the working conditions at his company’s factories as unfair. “We’ve discovered that this (improving factory conditions) is not a cost. It is a competitive strength,” Gou told reporters on Thursday after the ground-breaking ceremony for a new China headquarters in Shanghai. “I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs.” Foxconn, which assembles a number of Apple products including the iPhone and iPad, raised wages for its workers by 16 to 25 in February, and reached an agreement with Apple in March to hire tens of thousands of new workers in an effort to reduce overtime work.
Apple is testing the use of iOS-style notifications on iCloud.com, according to a new report. Citing a reader tip that was subsequently confirmed by other staff members, TUAW reports that the notifications appear in the middle of the screen, and currently use placeholder text, stating “Default Title for English” and “English - This is test message description”. Apple has not made any announcement of web-based iCloud notifications, and would likely need to integrate more functionality into the website to make the notifications truly useful, as Mail and Calendar are the only current web-based applications that could fully take advantage of such a system.
Apple today released iOS 5.1.1 for the iPhone, iPad, and iPod touch. According to Apple’s release notes, iOS 5.1.1 contains several improvements and bug fixes, including improvements for HDR photos taken using the Lock Screen shortcut, a fix for bugs that could prevent the third-generation iPad from switching between 2G and 3G networks, fixes for bugs that affected AirPlay video playback, improved reliability for syncing Safari bookmarks and Reading List, and a fix for an issue where an “Unable to purchase” alert could be displayed following a successful purchase. iOS 5.1.1 is compatible with the iPhone 3GS, iPhone 4, iPhone 4S, iPad, iPad 2, third-generation iPod touch, and fourth-generation iPod touch, and is available now via the update feature in iTunes or as an over-the-air update. To update your iOS device over-the-air, open Settings, tap on General, and tap on Software Update.
Apple has been sued by a New York-based iTunes customer who claims he was double-billed for a song. Justia reports that Robert Herskowitz was charged twice for the song “Whataya Want from Me”, and Apple refused to refund him for the extra charge. “Your request for a refund for “Whataya Want from Me” was carefully considered; however, according to the iTunes Store Terms of Sale, all purchases made on the iTunes Store are ineligible for refund,” Apple’s response read, according to the lawsuit. “This policy matches Apple’s refund policies and provides protection for copyrighted materials.” Herskowitz is seeking class action status for the suit.
Apple has announced that it has added support for 10 new languages to iTunes Connect. “We have expanded language support in iTunes Connect, so you can localize app metadata, keywords, and screenshots in 10 new languages: Traditional Chinese, Norwegian, Turkish, Finnish, Danish, Indonesian, Malay, Thai, Vietnamese, and Greek,” reads a notice on Apple’s Developer site. iTunes Connect, the suite of web-based tools developers use to submit and manage apps on the App Store, now offers support for more than 25 languages.
Apple has released minor updates to its iLife apps for iOS with a number of small enhancements, bug fixes and stability improvements. iPhoto 1.0.1 adds the ability to copy the URL of an iCloud-published photo journal to the clipboard using a Copy Link button and addresses an issue related to duplicate photos appearing in photos view. GarageBand 1.2.1 fixes an issue with crashing or missing songs when sharing to iCloud, resolves login issues with SoundCloud and Facebook accounts in addition to addressing other minor performance and stability issues. iMovie 1.3.1 adds the ability to access Help when editing projects in the iPad version and resolves an issue where incorrect frames were sometimes shown when splitting clips.
Apple is in the process of rolling out its iTunes Match service in a number of new countries. 9to5Mac reports that users in Italy, Portugal, Greece, Slovenia, and Austria can now sign up for the service, although they have yet to be added to Apple’s official list of countries in which the service is available. Launched in the U.S. in November, iTunes Match is a $25/year service that matches tracks in a user’s iTunes library with tracks stored on the company’s iTunes Store servers, uploading any tracks it can’t match, and offering users full access to all their music — up to 25,000 tracks — from any of their devices.
Apple has hired Jessica Jensen, a former executive at Yahoo!, to its iAd team, according to a new report. Citing anonymous sources, AllThingsD reports that Jensen will work for recently-hired iAd head Todd Teresi. At Yahoo!, Jensen was in charge of the women’s site Shine, as well as its lifestyles and health content businesses.
Apple and Samsung are set to meet for court-overseen talks in late May. AllThingsD reports that the companies will meet in San Francisco on May 21-22, with Apple CEO Tim Cook and general counsel Bruce Sewell expected to attend. The talks will be overseen by U.S. Magistrate Judge Joseph C. Spero, and will be focused on resolving the numerous patent disputes between the two companies. As noted in our prior report, the court can obligate the two companies to meet and talk, but cannot force a settlement.
Apple has received approval from the Cupertino Planning Commission to build a new 21,468 square foot cafeteria exclusively for company employees several blocks away from the its Infinite Loop headquarters. The San Jose Mercury News reports that the cafeteria is being built, in part, to give employees working at Apple’s various office buildings in the area a place to freely talk business without the threat of eavesdropping from competitors. “We like to provide a level of security so that people and employees can feel comfortable talking about their business, their research and whatever project they’re engineering without fear of competition sort of overhearing their conversations,” Dan Whisenhunt, Apple’s director of real estate facilities, said at a meeting of the Commission. “That is a real issue today in Cupertino because we’ve got other companies here in our same business.” According to the report, the two-story cafeteria will have a cafe, meeting rooms, lounge areas, and courtyard space, as well as an underground garage.
Apple has started replacing with iPads the iMacs that have traditionally served as kids’ areas in its retail stores. iMore reports that the kids’ tables, which previously held four iMac computers in an outward-facing display, now sport four iPads instead. As with the iMacs, the iPads have a variety of kid-friendly apps installed; it is unclear when the switch was made, or if Apple has yet made the switch at all of its retail stores. [via MacRumors]
Apple has been named in a new lawsuit targeting the manufacturers of cellular phones with voice control capabilities. Colorado-based Potter Voice Technologies has filed a federal patent infringement suit against Apple, Sony, Microsoft, Google, HTC, Samsung, LG, Motorola, ZTE, Kyocera, Sharp, Huawei, Pantech, RIM, and Nokia, claiming that all phones containing voice command functionality violate its 14-year-old patent. “Apple’s Siri and Google’s Google Voice Actions make cell phones and other electronic devices much more useful for customers, but those products and others would never have been possible if not for the technology embodied in Potter’s patent,” said IP attorney Christopher Banys, who is representing Potter. “The defendants have collected a fortune using Potter’s technology, and we are asking the court for at least a reasonable royalty based on their unauthorized use.”
Just announced this morning, Apple has already sold out of tickets for its 2012 Worldwide Developers Conference. According to a notice on Apple’s official WWDC website, tickets are sold out, roughly two hours after they went on sale. “We’ll be posting videos of all our sessions shortly after the conference, so everyone can take advantage of great WWDC content for free,” reads a consolatory message. Last year’s conference sold out in just 12 hours.
Apple this morning announced that it will hold its annual Worldwide Developers Conference June 11 through June 15 at its traditional venue of Moscone West in San Francisco. According to the company, developers at this year’s conference will “learn about the future of iOS and OS X”, and will have access to more than 100 technical sessions presented by Apple engineers. The announcement lacks any mention of a Keynote Address; however, Apple has in the past used a later announcement—traditionally closer to the event itself—to outline its Keynote plans.
“We have a great WWDC planned this year and can’t wait to share the latest news about iOS and OS X Mountain Lion with developers,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing. “The iOS platform has created an entirely new industry with fantastic opportunities for developers across the country and around the world.”
During Apple’s second-quarter 2012 financial results conference call, Apple CEO Tim Cook and CFO Peter Oppenheimer made a number of comments related to Apple’s iPhone, iPad, and iPod businesses.
Peter Oppenheimer, Apple’s CFO, opened the conference call by calling attention to the company’s record March quarter, which he said was fueled primarily by strong iPhone and iPad sales. He said that iPod sales, though down year-over-year, were ahead of internal projections, and as with the past few quarters, the iPod touch accounted for over half of iPod sales. Regarding the iTunes Store, Oppenheimer said that the catalog now includes over 28 million songs and 45,000 movies.
iPhone sales more than doubled in the Asia Pacific region, according to Oppenheimer, who added that the January launch of the iPhone 4S in China and the addition of China Telecom as a second carrier were responsible for a lot of growth. Cook later stated that the company saw 3X year-over-year revenue growth in China. Oppenheimer said that the manufacturing ramps for both the iPhone 4S and the third-generation iPad were extremely successful, which enabled the company to fulfill demand in the March quarter, compared to the June quarter last year. As a result, the company is expecting a sequential decline in iPhone sales.
The company was “very pleased” with iPad sales during the quarter—including sales of the third-generation model, which is now available in over 40 countries. iPad sales more than doubled in each segment, and as a result, the company is slightly supply-constrained. Oppenheimer said that the iPad is about to enter the K-12 institution buying season, which the company expects to boost sales, and later added that the company is selling third-generation iPad units as fast as it can make them.
When asked about what the company is learning about lower price points on the iPhone and iPad, Apple CEO Tim Cook said the company is thrilled with the results they’ve seen thus far, although obviously it’s only been a few weeks. He added that the lower price of the iPad 2 unlocked some education demand, probably more price-sensitive customers, and in some countries, there was a marked change in demand. The company is not sure yet what the mix of third-gen iPad to iPad 2 will be, but said that on absolute sales of the iPad 2, what the company is seeing is exciting. Cook went on to say that the iPhone 3GS and iPhone 4 contributed to the 35 million in iPhone sales—the company’s second biggest quarter in terms of iPhone sales.
Overall, more than 365 million iOS devices have been sold, and the App Store now offers over 600,000 apps, 200,000 of which are built specifically for the iPad. Oppenheimer added that iCloud now has over 125 million customers signed up.
Finally, when asked about the company’s ongoing legal disputes, Cook said that he has always hated litigation, and just wants companies to invent their own stuff. He added that if Apple could reach agreements where it would be guaranteed that companies would be using their own inventions, and that included a fair settlement on stuff that’s occurred, it would be happy to settle instead of battle. That said, he added that Apple can’t become the developer for the world—that the company needs people to invent their own stuff.
During the company’s Q2 2012 Financial Results Conference Call, Apple CEO Tim Cook made several very interesting comments regarding the merging of traditional PCs with tablets. Cook said that while any two types of products can be forced to converge, the resulting products involve tradeoffs, and eventually reach the point at which they no longer appear to anyone; combining products creates compromises that do not please either user. He used the MacBook Air as an example of continuing innovation in the Mac space, and said that it appeals to someone who has somewhat different requirements than an iPad user. Cook specifically said that Apple will not make the compromise of convergence, adding that while others might converge their lines—especially for defensive reasons, such as seeing their computer or tablet sales flagging—Apple will play in both markets simultaneously.
Reporting its second quarter 2012 financial results today, Apple said it sold 35.1 million iPhones in the quarter, an 88 percent increase year-over-year, but down slightly from 37.04 million units in the prior quarter. Apple sold 11.8 million iPads during the quarter, up 151 percent from the year-ago quarter and down from 15.43 million units in the first quarter of 2012. Finally, the company said it sold 7.7 million iPods during the quarter — a 15 percent decrease compared to the same quarter last year. Unit sales of iPhones, iPads, and iPods bring the cumulative totals for the three device categories to 218.1 million, 67.08 million, and 344.28 million, respectively.
Apple posted revenue of $39.19 billion and net quarterly profit of $11.6 billion, or $12.30 per diluted share, compared with revenue of $24.67 billion and net quarterly profit of $5.99 billion, or $6.40 per diluted share in Q2 2011. Revenue from Other Music Related Products and Services, which includes revenue from the iTunes Store, App Store, and iBookstore in addition to sales of iPod services and Apple-branded and third-party iPod accessories, was $2.027 billion for the quarter, up 32 percent year-over-year and down 6 percent over the prior quarter.
“We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Tim Cook, Apple’s CEO. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.”
“Our record March quarter results drove $14 billion in cash flow from operations,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $8.68.”
Apple infringed on a single Motorola Mobility patent in its production of the iPhone, iPad, and several other products, according to an International Trade Commission judge. Reuters reports that ITC Judge Thomas Pender handed down his preliminary ruling in the dispute today, stating that Apple had infringed one Motorola patent, but did not violate three other patents which Motorola accused it of infringing. Judge Pender’s ruling is not final, and will be reviewed by the full commission before a final ruling is issued in August.
Apple has launched new mini websites highlighting the use of the iPhone and iPad in business. Entitled “iPhone in Business” and “iPad in Business”, respectively, the sites include pages dedicated to apps that are useful for business, discussion of integration of the devices into existing company infrastructure, task-specific examples of how the devices can help with various tasks, and profiles of businesses that are using the iPhone and iPad to help boost their productivity. Apple regularly touts business adoption of both the iPhone and iPad, both of which have been adopted by a high percentage of Fortune 500 companies.
Apple has offered a settlement relating to the ongoing eBook pricing case in Europe. The Telegraph reports that according to European Union competition commissioner Joaquín Almunia, the body has received settlement offers from Apple as well as all the publishers, save for Penguin. “[The publishers] are making proposals to reach an early resolution of the case,” he said; terms of the proposals were not disclosed. Notably, Apple has not made an effort to settle a similar case in the US, possibly due to the differing conditions of the two markets at the time of the alleged collusion.