Keeping you in the loop on a few of the things that happened around Apple this week.
Another China Mobile meet and greet. It?s no coincidence that Apple CEO Tim Cook showed up in China (his third visit in two years) a week after the company reported weak sales there. China Mobile Chairman Xi Guohua met with Cook in Beijing July 30 to discuss ?cooperation? between the two companies, the Chinese telecom company confirmed this week. China Mobile is the world?s largest telecom company by subscribers (more than 740 million) and the only carrier there not to offer Apple?s iPhone and iPad. Apple signed up China Unicom and China Telecom as partners in the past two years. But Apple watchers see a deal with China Mobile as the big win. China is already the largest market for smartphones and demand there is supposed to explode in the next few years. The deal may be so long in coming because the iPhone will need to be modified to run on the special version of 3G technology that China Mobile uses. By the way, Cook also met with top executives from China Unicom and China Telecom while in Beijing. FYI, Apple?s sales in China in the quarter ended in June were down 43 percent from the prior quarter and Cook said it was due to weak demand in Hong Kong but he?s not sure why. But it?s likely that customers may be waiting to see what Apple conjures up with its new iPhone this fall.
Apple has had its shares of PR troubles in China, beyond the ongoing scrutiny of the labor practices of its suppliers there. It recently apologized to Chinese consumers for its warranty policies and last week put up a notice on its Chinese website cautioning users against using non-Apple iPhone chargers after a Chinese flight attendant was electrocuted using a faulty third-party charger. And this week the New York-based nonprofit China Labor Watch released a report (found here) alleging labor abuses ? including withholding of worker pay? at Pegatron, an Apple contractor in Taiwan. Apple said that while it has been aware of some of the problems found by China Labor Watch and working with Pegatron, it will be investigating others that it was made aware of by the watchdog group.
Paying up for e-books.?The Department of Justice, which last month won its antitrust case against Apple over e-book price fixing, announced its?proposed remedies?today. The DOJ is asking that Apple terminate its existing e-book agreements with the five publishers it was accused of conspiring with. It also asks that the company ?refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price. Under the department?s proposed remedy, ?Apple will be prohibited from again serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms.? A few hours later, Apple filed a brief opposing the DOJ?s proposed remedy, which it called a ?draconian and punitive intrusion into Apple?s business, wildly out of proportion to any adjudicated wrongdoing or potential wrong.? Thanks to?The Next Web?for posting Apple?s 31-page brief. You can also find it on?Scribd.?
Moto X is nice but? Google finally unveiled the new Moto X smartphone ? the first model designed since its completed its $12.5 billion takeover of Motorola in June 2012 ? and the reviews for the Android-based device are mostly positive. But Apple watchers are breathing a sigh of relief because while it?s nice ? always-on voice control, some cool customization options ? they don?t consider it a material threat to iPhone sales, at least not right now. Gene Munster of Piper Jaffray says it will definitely stand out against other Android-based phones, but doesn?t see it ?significantly different? enough to change the ?current market dynamics between Android and iPhone.? Stuart Jeffrey of Nomura Research also thinks Moto X will lure customers away from Samsung and HTC devices, but won?t trigger ?churn from iPhone users.? You can find a hands-on review by Forbes? Alex Konrad here.
iPhone versus Samsung. Two smartphones from Samsung beat out the iPhone to seize the top spot in a survey of individual smartphones by the Amerian Customer Satisfaction Index. Samsung?s Galaxy S3 and Galaxy Note II each scored 84 on a scale of 100 in a smartphone brand study. They beat out a trio of Apple?s phones?the iPhone 5 and iPhone 4S, which each got an 82, and the iPhone 4, which received an 81. Consumers gave the Samsung phones the edge for for two reasons, ACSI Director David VanAmburg said in an interview with Forbes? contributor Rob Hof. One was the larger screen size, which those surveyed found appealing. The other was price, or more accurately perceived value. One note: Apple?s phones overall had a higher customer satisfaction rating than Samsung, whose ratings incorporate feedback on the feature phones it sells. Apple doesn?t sell feature phones.
Pass the chips. Apple has bought low-power wireless chip developer Passif Semiconductor. The company?s technology has a radio that ?works with a low-energy version of Bluetooth called Bluetooth LE, which is promising for health-monitoring and fitness devices that need extra-long battery life,? says former WSJ reporter Jessica Lessin, who first reported the news. It was confirmed by Apple to AllThingsD, though the company declined to discuss terms of the deal. What kind of devices might want such a low-power chip? Wearable computing devices like the smartwatch Apple is reportedly working on.
iPad mini refresh. Ever since Apple introduced the iPad mini last year, the talk has been about when Apple will release a version of it with the Retina display technology used in the iPhone and the larger-format iPad. The prognosticators have been saying we?ll see it later this year ? in time for the all-important holiday shopping season, and they may be right. Suppliers of the device are gearing up for mass production of the Retina-based iPad mini, which will have a 7.9-inch screen just like the current model, in the fourth quarter, the Wall Street Journal says, citing people familiar with the matter. The interesting twist? Apple may be relying on tablet and smartphone rival Samsung ? or its Samsung Display Co. unit ? to supply the screens it needs, along with Sharp Corp. But the WSJ notes that Apple?s designs and plans routinely change right up until new products are released so all this may not be a done deal. But an iPad mini with a Retina display makes a lot of sense, especially since others already have high-resolution screens, including Google with it s Nexus 7 tablet and Amazon with its 7-inch Kindle Fire.
Retail woes. Two former Apple retail workers filed a class action suit against the company, saying they and other hourly retail workers were required to wait for as much as 30 minutes each week without pay as their bags were checked. Over the course of year, the off-the-clock bag checks cost Apple?s hourly workers about $1,500 in ?uncompensated hours worked and overtime,? according to a lawsuit filed in San Francisco by Amanda Frlekin, who worked in a Los Angeles Apple retail store for about three years, and Dean Pelle, who served as an Apple specialist at stores in Atlanta, New York and West Palm Beach, Florida for about six years?In other retail news, Apple?s search for a new retail chief ? Tim Cook fired retail head John Browett after less than a year on the job in October ? continues, but the company hasn?t yet found a list of worthy candidates, according to the WSJ, which says recruiters Egon Zehnder International are handling the search. Cook has been leading the retail stores as the search goes on. How?s that working out? Third-quarter retail sales were flat year-over-year and down 22 percent from the second quarter.?
Fingerprints and the iPhone 5S. Will Apple include a fingerprint scanner in the new iPhone coming this fall? Maybe. At the start of this week, developer Hamza Sood posted an image on twitter saying that code in the new iOS 7 operating system for the iPhone appears to confirm rumors that the iPhone home button will contain a fingerprint sensor. Those rumors grew out of Apple?s acquisition last year of security firm AuthenTec, which has fingerprint technology. But today, Techkiddy posted photos it claims show internal parts of the upcoming iPhone 5S and there?s no fingerprint scanner to be found. So will they or won?t they? I?m sure that the iPhone will include a fingerprint scanner at some point in the near future, but I wouldn?t be surprised if they waited for next year?s iPhone 6.
Special projects. When an executive?s job changes and his new role involves working on ?special projects? for the?CEO,?that?s usually a sign he?s already out the door. But Apple SVP Bob Mansfield may actually be working on new projects. Let?s rewind here a bit to last weekend when Mansfield?s bio suddenly disappeared from the ?leadership? page on Apple?s website showing Tim Cook and his executive team. Mansfield, a longtime hardware engineering leader at the company, was tapped last year to run a new Technologies group that included the teams working on wireless technologies and chips. This week,?Apple said?he is now working on ?special projects? and will continue to report to Tim Cook. Company insiders say Mansfield will really be working on special projects, including some of the new products under development that Cook has promised to deliver in late 2013 and 2014.
Jobs the film gets big marketing push. Jobs, the Steve Jobs? biopic to be released Aug. 16, released a behind-the-scenes making of video with some new scenes from the flick. You can check it out above, or watch all the trailers you may have missed at JobsTheFilm.com. I have to say, Ashton Kutcher as a young Steve Jobs looks the part. But when it comes to good movies, we all know that looks aren?t everything.
That?s it for this week. Enjoy the weekend.
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You can find last week?s Apple Loop here:
Apple Loop: iPhone Bonanza, Faulty Charters, Voice Tech in Beantown, Kutcher on Skipping Meeting With Jobs
Source: http://www.forbes.com/sites/connieguglielmo/2013/08/03/apple-loop-cook-goes-to-china-again-e-book-drama-google-moto-x-is-no-iphone/
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