Apple to launch 4" iPhone and iPad Air 3 in first half of 2016

According to connected KGI analyst Ming-Chi Kuo, Apple is preparing two major iOS device introductions for the first half of 2016 in the much-rumored 4-inch iPhone and a refreshed 9.7-inch iPad Air 3.

In a Sunday note to investors, Kuo said he expects Apple's upcoming 4-inch iPhone to be met with tepid demand, as the device's form factor and hardware are mostly iterative. Apple is revisiting the smaller handset size after shifting R&D efforts to larger-screened iPhone 6 and 6s models.

The rumored "iPhone 5se" will sport a form factor similar to the outgoing iPhone 5s, but with higher-spec hardware like a 12-megapixel camera and adoption of slightly curved iPhone 6s-style "2.5D" cover glass. Compared to current iPhone 6s and 6s Plus handsets, the new 4-inch version is not expected to boast much in the way of hardware innovations, Kuo says. 

Less is known about the upcoming iPad Air 3 and "iPhone 7." Today's note is one of the first to predict a first half 2016 launch window for Apple's refreshed 9.7-inch tablet. In 2014, Apple released the A8X-powered iPad Air 2 in October, though minor hardware upgrades, while solid additions, weren't enough to slow steeply declining in sales. 

Kuo has little insight on this year's flagship iPhone, tentatively dubbed "iPhone 7," but notes no surprise innovations in the information he has been able to confirm thus far. This suggests Apple is currently working on evolutionary upgrades in A-series SoC technology, camera resolution, battery life and more. 

If Apple follows its usual upgrade cycle, this year's iPhone should bring a revamped design. Multiple rumors suggest Apple is looking to ditch iPhone's 3.5mm headphone jack in favor of a Bluetooth or Lightning solution, while less reliable sources have claimed the handset will be waterproof and feature wireless charging.

As for quarterly shipments, Kuo models iPhone sales at 77 million for the three-month period ended in December. The number sits at the midline of Wall Street expectations.

Looking ahead, tame iPhone 6s demand will drive current quarter iPhone shipments of 43 million units, down 44.2 percent quarter over quarter and 29.7 percent from the same time last year. Apple traditionally sees seasonal headwinds coming off strong holiday sales. Kuo believes the dip in iPhone demand is set to correct to between 42 and 45 million units in quarter two when 4-inch iPhone model production ramps up.

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Why the feature-light iOS 9.2.1 security update matters

Three days ago Apple released an iOS 9.2.1 update with seemingly arbitrary ‘security updates and bug fixes’ listed in the release notes. As we’ve seen time and time again with these type of software updates, most often these small updates seem to go ignored by the general public. We stress how important it is to keep your device up to date, even with small security updates like this.

As is customary after Apple releases a security update version of iOS, the firms and people that discovered the vulnerabilities are coming out explaining how and why these security updates matter. Apple has already included a breakdown of what security issues were resolved in iOS 9.2.1, but it’s still nice to get a further detailed look into what made the vulnerabilities possible in the first place.

SkyCure, a company helping in threat defense in EMM and MDM solutions, released a blog post this week detailing their discovery while noting that Apple had finally resolved it.

The security issue (CVE-2016-1730) was reported back in June of 2013, but SkyCure notes that it was a more complicated issue to fix than one would imagine. SkyCure’s discovery relates to the way iOS handles cookies when connecting to a malicious captive-enabled Wi-Fi network. You may have seen these types of networks if you’ve ever connected to a hotel, airport or Starbucks network.

On Thursday, security researchers at Zimperium zLabs had also released a report analyzing how their vulnerability (CVE-2016-1722) was discovered. This vulnerability appears to have taken less than two months to resolve. Zimperium’s discovery revolved around a heap buffer overflow in syslogd that would allow an attacker to have elevated privileges or even perform remote code execution (although this would require the device to be on an already trusted Wi-Fi network).

As the desire for better security, privacy, and encryption increases, I welcome the security researchers’ work and Apple’s “minor” update. Even if they don’t include any exciting new features, like new emoji.

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Apple in 2016: Is the mighty iPhone in decline?

Apple's investors are spooked.

Despite a rip-roaring 2015, something peculiar happened this month: Apple's stock value dropped to below $100 for the first time since October 2014.

That was down from a high of just over $132 last May.

As I write this, it's rallying on account of some decent rumours - but it's on Tuesday we'll truly know if 2016 is going to be a tough one for the tech giant.

On the one hand, we're expecting an amazing Christmas with record-breaking revenues, yet again.

But it's Apple's guidance for what to expect in the months to come that investors will be eagerly awaiting. It's here where the company outlines its worries, the issues that keeps it awake at night (or at least, stressed out in the boardroom).

Image copyrightGetty Images

Image captionApple's share price fell below $100 earlier this month

Troubled investors are expecting Apple to say this: For the first time, sales of the iPhone are in decline.

Decline!

The iPhone!

That's a big deal.

New business

According to the latest figures Apple has shared - from October - sales of the smartphone make up 63% of the company's entire revenue. That's before you factor in all the people who then go on to buy apps, subscribe to Apple Music, and do any number of other things with their phone from which Apple takes a cut.

Its other major products don't even come close. The Mac range has bucked a huge industry-wide decline but still only accounts for 13%. The iPad, meanwhile, represents 8% - though this may get a boost thanks to the recently launched iPad Pro, the bigger version that comes with a keyboard and little stylus.

Apple's major new product of recent times has been the Apple Watch. Yet we're still none-the-wiser about how successful that has been, as its performance is lumped into the "other" category, which includes sales of the iPod, Beats headphones and various other things.

Image copyrightGetty Images

Image captionAnalysts believe the Apple Watch is the bestselling smartwatch, but can only estimate its sales figures

Collectively, the "other" products were worth 6% in total.

The watch will have likely been a good performer at Christmas, so Apple may begin to shed some light on how well it is doing. But we'll have to wait and see.

The reliance on the iPhone is what worries investors most. Apple has plenty of repeat business - once hooked in, data shows people are far more likely to stick with Apple than change to another brand like Samsung - but it's now seeing a plateau when it comes to bringing in new customers.

'Bet the house'

Which is why China is so important.

Apple now makes more money in China than it does in the whole of Europe, and it's well on course to overtake the US.

"If China falls so does Apple," says Apple investor Daniel Ives, from FBR Capital Markets.

Image copyrightGetty Images

Image captionApple opened its second store in the Chinese city of Nanjing in January

"They've really bet the house on the China growth opportunity."

Almost all of Apple's gains last year were thanks to Chinese expansion - new stores, and new customers who, until fairly recently, had to make do with awful knock-off imitations of the real deal.

But instability in the Chinese economy has rocked global markets. If China continues underperforming, it may be hard for Apple to continue that growth long-term.

But for the majority of investors and analysts, China doesn't represent a problem - yet.

It's still likely to be Apple's huge growth opportunity throughout 2016.

Case in point: there's currently only 30 Apple stores across the whole of China. California has 53.

Data suggests Apple's primary target in China, the middle classes, are still emptying their pockets with glee - particularly when it comes to buying Apple products.

Predicting the future

Trying to predict Apple's future is a dangerous habit.

It rarely ends well - just ask ex-Microsoft boss Steve "the-iPhone-is-not-a-good-email-machine" Ballmer. And everyone at Blackberry. And Nokia.

Image copyrightGetty Images

Image captionSales of Windows-powered smartphones have lagged far behind those running Apple's iOS

But speculate we must, and here's a summary for what investors and analysts think could happen in 2016.

• The iPhone 7 will come out - possibly without a headphone jack - and give iPhone sales a massive kick. (And perhaps headphones sales too, come to think of it.)
• A new budget iPhone — called the "5E" - will hit the developing world. This may be a prime product for markets like India where, we learned this week, the company has applied to open up its own-brand stores too.
• China will become even more important and show little sign of slowing down, at least where Apple is concerned.
• A big acquisition will provide an express route for Apple into a new area. Apple investor Daniel Ives told the BBC that buying Netflix, for one example, would "get Wall Street the most excited".

On the road

And then there's one word that would send Apple's shares soaring in an instant: car.

Image copyrightGetty Images

Image captionApple's chief design officer Sir Jonathan Ive is known to have a passion for cars

Rumours that Apple is making a car have gone from a murmur to shouts in the past six months.

Some predict Apple is looking at making a car, others say the company would be wiser to work with existing car makers to integrate Apple software - something which is already happening with CarPlay, a sort of slimmed down version of iOS designed for driving.

"It always goes back to can they come up with something as powerful as the iPhone," says Carolina Milanesi, an analyst with Kantar Worldpanel ComTech.

"And I don't know if that is going to have to have us wait until the car comes out."
But she adds: "I don't think investors will ever be happy with Apple,"

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How to protect your iOS jailbroken device from malicious tweaks

 

The internet is abuzz with news of several iCloud accounts being hacked recently, wherein nearly 220,000 accounts were allegedly exposed to potential compromise. Although avid jailbreakers would be aware of the inherited risks involved with iOS jailbreaking, not many would seem to know of potential ways to protect their device from external threats.

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Here’s the difference between Apple’s alleged iPhone 5se and iPhone 5 in the leaked photo

Late last night, an alleged photo of the ‘iPhone 5se’ made its way to the Internet that showed the device sitting right beside an iPhone 5. At first glance, many people confused the iPhone 5 with an iPod Touch, while other struggled to find any major differences between the two phones in the leaked pic. 

To clear this confusion, the folks over at Business Insider have marked all the changes between the iPhone 5 and the alleged ‘iPhone 5se’ in the leaked image from earlier today.

As you can see, the front of the iPhone 5se packs in quite a lot of changes compared to the iPhone 5. This includes a repositioned FaceTime camera and Power button, new shape for the volume buttons, rounded edges for the front-facing glass, and a Touch ID enabled Home button.

The iPhone 5 features a 4-inch screen, so the phone on the right being an iPhone 6 or iPhone 6s despite the uncanny resemblance is unlikely.

With the iPhone 5e rumors and leaks now catching steam, it is almost a given that Apple is indeed working on a 4-inch iPhone. The latest leak surrounding the handset reveals that the handset will come with an A9 chip, always-on ‘Hey Siri’ functionality, and will eventually replace the iPhone 6 and iPhone 6 Plus from Apple’s lineup later this year.

Do you think the 4-inch ‘iPhone 5se’ is real?

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iPhone 5se: Leaked details claim next Apple phone will be an iPhone 6 in an iPhone 5 case

Many of the details of the new, smaller iPhone have been revealed.

The phone’s case will mostly be the same as that of the iPhone 5s, according to a report from 9to5mac. And the inside’s will be somewhere between those of the iPhone 6 and the 6s, according to the same report.

Apple hopes that updating the smaller iPhone will spur upgrades from those users who prefer to hang on to the old sizing scheme, which was dropped for the bigger iPhone 6. 9to5mac reports are almost always correct, and the rumour site has predicted the details of a range of recent Apple products.

Some reports last week showed what claimed to be the long-rumoured iPhone 6c. The video showed what appeared to be just a small version of the iPhone 6 — but it was fake, according to the report.

Instead of using the design from the iPhone 6, Apple will put new internals into a updated version of the iPhone 5s design, according to the report. From the outside, it will only differ by using rounded edges like the iPhone 6, rather than the shiny and straight ones on the iPhone 5s.

Inside will be a range of upgrades that bring it into line with the iPhone 6, according to the report. That will include an upgraded camera, a chip to allow it to use Apple Pay and the same processor as the iPhone 6.

The new device is called “N69” within the company, according to 9to5mac. But it’s likely that the phone will be called the “iPhone 5se” when it is released, marking a change from previous rumours that it would be referred to as the iPhone 6c or iPhone 6e.

The phone will also come in the same silver, “space gray”, gold and rose gold colours that the iPhone 6s comes in.Since it will mostly use the technologies of the iPhone 5s, 6 and 6s, the phone is unlikely to offer a glimpse at the design of the iPhone 7, which will probably be released around September. The company has been rumoured to be dropping the headphone jack from that phone, for instance, but the iPhone 5se will keep the old standard.

The new, small iPhone is scheduled to be introduced at a March event and come out soon after, according to rumours. The company might also show off new Apple Watch accessories at the same time.

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