shownotes_20160430

Opening
  Opening Music
    Music is Say Anything by Manda and the Marbles
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News
  Apple Q2 2016 Results
    Apple came in at the lower end of guidance and below what Wall Street was hoping or so the sock has taken a beating
    Still Apple managed to rake in over $50.6 billion in revenue and 10.5 billion in profit for the quarter
      That was still down 13 percent from $58 billion in the March quarter last year.
    iPhone unit sales and revenue were down and that was the biggest concern for investors
      Apple sold just over 51 million iPhones which was a 10 million unit decline from the same period last year. iPhone brought in 32.86 billion in revenue.
      Tim did note that "surprising" iPhone SE demand continues to outstrip supply and Apple's working to catch up.
      Also SE sales were not reflected in this quarters iPhone numbers.
    iPad sales were down, though this one area where Apple beat Wall Street expectations.
      Apple sold 10.25 million iPads, just slightly ahead of Wall Street consensus of about 9.9 million.
      Still that was a decline of 19 percent with revenue of 4.41 billion also down 19 percent from 5.62 billion in the same quarter last year.
      The good news is it's looking like iPad may be close to the bottom and finally be leveling off. I expect it to flatten out with consistent year-over-year numbers ending up a lot like the Mac numbers. Apple selling 8-10 million iPads quarter to quarter.
      IDC says overall tablet shipments declined about 14 percent
        Noted increased interest in "detachables" like the Surface and iPad Pro models.
    Mac sales were down just slightly.
      Revenue down 9 percent coming in at 5.1 Billion on sales of 4 million units (down 12 percent).
      More than 50 percent of Mac buyers are new to the Mac. 80 percent in China.
    Services were up
      Came in at 5.99 billion, which is more than the revenue from Macintosh. That's up 20 percent year over year.
    "Other" was also up.
      2.19 Billion vs. 1.69 billion a year ago. Up 30 percent.
      Thanks to Apple Watch.
      Apple Watch customer satisfaction is at 94 percent.
    Before we get too down about Apple the San Jose Mercury News has some interesting numbers from 2015
      They publish the Silicon Valley 150 a report on the financials of the top 150 companies in the Valley.
      Apple was ranked number 1 with 2015 revenue of 234.99 Billion, not surprising
      But that was more than the next four companies combined. Those companies, Alphabet (Google), Intel, HP Enterprises, and HP.
      Their profits more more than the next seven companies on the list combined.
    Jason Snell writing for iMore did some great number crunching looking at Apple's business without the iPhone
      Apple's non-iPhone business is generating about $80 billion a every year — roughly the same as Microsoft. (Also, very stable over the past 16 quarters)
      Plus as already mentioned Services and Other, both non-direct iPhone revenue, are the two areas where Apple is seeing growth.
      Still there is an iPhone symbiosis with Apple's other products and services, so Apple doesn't get all this for free without iPhone.
      Point is Apple's product pie chart is shifting away from total iPhone dominance and that might be a good thing for the future.
      Apple's revenues becoming a more balanced mix.
      Be sure you're also reading Jason's "Six Colors" blog. He had a ton of really great stuff this week especially.
    Other notes from the call
      iPhone sales were up 56 percent in India and they are seeing more Android switchers than ever.
        Apple's pilfering from Android is interesting because while it's driving the ASP of iPhones down (likely lead by the SE), there are a LOT of Android customers to win over.
        The halo effect into Macs and other services too.
        Also, ALL smartphone makes are struggling with sales growth.
      Still revenue in China was down 26 percent and down 25 percent in the rest of Asia Pacific.
      App Store revenue was up 35 percent
      Cash "on hand" is now at $232.9 billion
      Apple Music now has 13 million paid subscribers
    Latest IDC numbers show Apple's global smartphone marketshare dropped 3 percent to 15.3 percent
      Samsung lost 0.1 percent, so looks like low priced models from Huawei and OPPO are picking up the slack.
  Apple Car
    9to5mac noticed two more Apple key hires from the automotive industry.
    They were hired for the "Product Realization Lab" a hardware prototype lab.
    A former senior CNC programmer for R&D hardware prototyping at Tesla, David Masiukiewicz, and Kevin Harvey, a CNC machine shop supervisor at Andretti Autosport.
    Harvey actually started back in August and Masiukiewicz just left Tesla in March.
    Given the skill sets between the two it's likely Apple is working on major components for an electric car or maybe a full prototype. Could be an indication they are moving beyond the early concept phase.
  iPhone 7
    Losing the headphone jack
    Glass backed design and OLED display? Maybe?
      Probably more likely in 2018.
    Supposed leaked schematics show the physical dimensions remaining identical to existing models, including the thickness.
      "Slight" camera bump on the dual lens module for the Plus
    Camera module changes. Likely move back to a flush or almost flush design.
    Dual-camera system that might be only on the iPhone 7 Plus
    Add a 256GB version and drop 16GB on the bottom end.
    Could by fully waterproof and dust-proof (supply chain sources)
      Touch-sensitive home button with "Taptic" feedback or
      Apple was granted a patent for a pressure-sensitive Liquidmetal home button that deforms slightly when pressed, but returns to its normal shape
      Same source says Apple is considering a matte black color.
    Move away from Lightning to USB-C
      I would have immediately dismissed this until this week
      Intel released specs for audio over USB-C
    Once again the "other" rumors
      Dual lens camera system
      Smart Connector
    KGI analyst Ming-Chi Kuo told his investors he doesn't expect much excitement for the iPhone 7
      According to Kuo it's missing "attractive selling points" and he believes Apple will be the only top 5 smartphone vendor to see shipments decline in 2017.
      His prediction is between 190 and 205 million units in 2016, a 18 percent decline from 2015. His number is also well below general Wall Street consensus of 210 to 230 million.
      No redesign and increasing competition in the market.
      I'll add that the features aren't compelling enough for people to buy on an "every year" upgrade cycle.
      He did say he expects things to rebound in 2018.
    In a note to his investors J.P. Morgan analyst Mark Moskowitz says Apple may skip the iPhone 7s naming next year and go straight to 8
      Cites major form factor changes, including OLED, no home button, and wireless charging as a reason
    Apple has extended it's iPhone upgrade program to online sales.
      Limited to the latest models. The iPhone 6s and iPhone 6s Plus
    India has passed a "panic button" law that will be required on all phones starting in 2017
      Needs to be a physical button that will call emergency services and give the GPS location of the device.
      Can't use the touchscreen.
      Apple would likely add a new gesture in software to an existing button. Probably the sleep/wake button (maybe triple tap?)
      The existing "emergency call" functionality, Slide to unlock and tap 'Emergency' is not enough to comply with the new law.
  Macbook
    Get's an iFixit teardown
    4 percent greater battery capacity, rated 41.41 watt-hours at 7.56 volts
      But the battery life is up to an hour longer likely due to the improved energy performance of the Intel Core-M processor
    The 80-90 percent battery write performance the SSD is due to faster flash and a new version of Apple's controller made by TSMC.
    The "tri-wing" screws have been replaced with "tamper evident" Phillips screws.
    Everything is glued or soldered in place so the repairability score is still 1.
    Performance-wise Apple claimed the new Macbook was about 20 percent faster than the old one
      Geekbench tests are showing the new Core-M (Skylake) processors beating out the older "Broadcom" CPUs by 5 to 18 percent.
      That doesn't account for GPU and IO, so Apple's 20 percent speed increase for "real world" performance is probably on par.
    One odd thing about the MacBook is it still only has a 480p FaceTime camera. Every other Apple device is at least 720p.
    The Macbook's logic board is smaller than a Raspberry Pi as pointed out via email by Richard.
      Interesting to think about the Macbook logic board in a new Mac mini? What he called a Mac micro?
      Ultra mini? Would need to have a couple more USB-C and possibly an HDMI port, or not?
  Apple Watch
    Seeking Alpha estimates Apple has sold between 12 to 13 million in the first year
    That would be double the number of iPhones sold in it's first year of sales, 6 million.
      As pointed out by Dennis Sellers over at Apple World Today
      If the ASP is assumed to be USD $500 that's 6 Billion in sales.
      Apple's "other" category sales were up 30 percent quarter over quarter. This is the segment that includes iPod, accessories, and Apple Watch.
    Slice Intelligence thinks the USD $50 price drop on the Apple Watch Sport might have increased sales by 250 percent over the past month.
      Also claim the new nylon woven bands accounted for 60 percent of first party accessory sales.
    Still Strategy Analytics reported that this quarter Apple lost 9 percent of it's global Smartwatch market share. Coming in at 52 percent vs. 63 percent last quarter
      Apple still probably shipped 2.2 million Apple Watches according to the report.
      Overall smartwatch shipments grew 223 percent
      It's likely Apple Watch is a victim of it's own success.
      It raise interest in the Smartwatch, bringing more customers, but many can't afford an Apple Watch or want something that works with their Android.
      I'd like to see Apple bring Android support to Apple Watch, but might be easier said than done.
    The Wall Street Journal ran a piece claiming they had source that said Apple plans to add more autonomy to the next Apple Watch
      Their source told them that Apple plans to add cellular connectivity to Apple Watch breaking it's bond to iPhone
      They don't address how the data plans and rates from carriers would work
        I assume like the add-ones currently for iPads with shared data plans.
        No mention of GPS, but I assume that would be also included.
      Would the cellular features be an add on price point like with iPads?
      Would they use a nano or eSIM?
      Other rumors have speculated on a FaceTime camera.
      Piece also doesn't mention battery, though I think the other rumors of 20-40 percent "thinner" Apple Watch designs come into question if Apple plans to add cellular and GPS features.
      The WSJ piece claims the extra all design of Apple Watch 2 would remain largely the same.
      The Apple Watch 2 is also rumors to have a "faster" S2 "System in a Chip" package.
    Apple has said that after June 1st developers can only submit Apple Watch apps rear are "native" and run the watchOS 2 framework
      That means no more "extension" apps that run on iPhone. They must run natively on the watch.
      Should be better for performance.
    We should also probably get a glimpse of watchOS 3 at WWDC in June.
    Apple Pay arrives in Australia
      Customers of ANZ Bank can now register their Visa and American Express cards with Apple Pay.
      Hopefully more banks "down under" will follow with Apple Pay support.
    Rumors that Apple will partner with Coach on the next set of "premium" watch straps
      There are reportedly at least eight bands in the works in white, black, red, and brown leather
      Some are stitched and some may come with charms on them.
      They will reportedly be priced at around USD $150.00 and made available around WWDC. Maybe as part of the "Summer" collection?
  Apple & the FBI
    There is a White House group that reviews flaws discovered by the U.S. government and decides whether they should be shared with the public.
    But the FBI is claiming that the method used to unlock the San Bernardino iPhone may not even qualify for being submitted for review.
    The hack was a purchased hardware/software from another party (undisclosed) and the FBI is implying that even they don't know the technique used.
    FBI sources told Reuters that director Comey doesn't know who they bought the hack from and that the FBI paid less than the $1 million that was speculated at after the director made his comments last week.
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      Great for recovering individual app data files.
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    Backup your messages or voicemail so you can save space.
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Feedback, commentary, opinions
  Wireless iPhone charging
    I talked about this last week and got some feedback
    Michael is for adding wireless charging
      He points out 2 scenarios where he'd see it as a benefit.
      Bedside, overnight charging. Just drop it down on a charging pad, no need to connect a cable.
      In the car. Since many now use Bluetooth to sync with an in Dash system or Car Play. Having a "cubby" or spot in the car to just set the phone in/on to wirelessly charge is more convenient.
    I "GET" it, but really how much more convenience are we adding?
      It takes 0.5 seconds to connect a cable.
      You can't use wireless charging while you use the device. Most will point out that you can still do both. Have a Lightning connector and wireless charging. True, but now you've added more internal hardware just to bring basically redundant functionality for a feature that, in my opinion, brings very little functional enhancement.
      And here's the deal. Apparently I'm wrong. I read a survey and something like 56 percent of people said wireless charging was the number one feature they want in the next iPhone.
      The reality we are inherently lazy and if we can save the 0.5 seconds of having to plug something in then that's what we're going to want.
      Once we have true "wireless" charging at a distance, then we can talk. Until then I just don't get it.
  Listeners need some help
    George is looking for a cheaper alternative to heart rate monitoring than an Apple Watch
      There are heart rate monitors from Polaris, Garmin, and others.
      You also have bands like the Fitbit.
      Here the catch though most of these options don't offer what the Apple Watch does
        Regular monitoring at 5 minute intervals when NOT exercising
        Integration with the Health app and Health Kit
        Data protection and privacy.
      At least I have not been able to find anything and neither has George.
      The FitBit seems the closest, but you need a third party app to sync it's data with HealthKit
      The Microsoft Band might also be an option, but it still doesn't have HealthKit integration and it's USD $249.00 only $100 less than an Apple Watch. You get better integration and more functionality for that $100 bucks.
      Do you have a product suggestion or viable solution for George?
    Greg discovered that since Apple added Siri integration to the 4th gen Apple TV the Remote App no longer brings up the Keyboard when you access the login box for iCloud or iTunes logins.
      I verified this.
      Means you cannot copy and paste a password from an app like 1Password on the iPhone.
  Fight phishing and Maleware
    Bob wrote in to warn us all of a phishing scam he received that was an email disguised to look like it came from Apple regarding his iTunes account.
    The thing is I get emails just like this on a regular basis. Sometimes they look like Apple emails, sometimes like there from Amazon, or Google, or Facebook.
    Here's the thing, NONE of these services will EVER ask you to confirm your account details via an email that they send out.
      If you do end up on a page that's asking you to enter your personal information like birthdate, credit card numbers, phone numbers, email address, SSN, drivers license, etc. IT'S A SCAM.
    Better yet, don't click the email links.
      If the email seems fishy it's probably phishy.
    So what CAN you do?
      Read all the text of the email. Often these are scams run from foreign countries and they will have spelling mistakes or grammar that is off.
      Hover over the link, but don't click it. (On iOS you long press the link, careful not to force press if you have a device with TouchID). This will display the link as a tool tip. Look at the URL, it will often reveal a destination that is an IP address or NOT the site the email reports to be coming from.
        This can be misleading sometimes as some site send email through a service that uses a tracking link.
        Bottom line if you're at ALL suspicious of the link, don't click it.
      If you think the email might be valid, just open your browser and go directly to the main page of the site. DO NOT copy an use the link from the email.
        Not look at the help, support, or blog sections to see if there is an alert or message.
        Log into your account and see if you get prompted to update your info from there.
      Another way to check is click the "From" address and check the email. Most of the time though this is spoofed.
      You can also in Mail with the message open go under the 'View' menu and select 'Message > All Headers' and look at those for clues as to the origin of the email.
      Apple has a Support Page for helping you identify and report phishing and other suspicious emails.
      Phishing on the web is also on the rise
        Pop-ups can surface on malicious as well as legit sites that may have been hacked or compromised.
        I've also seen stuff that slips in though legit ad networks.
      Tips for stopping web phishing and Maleware
        Turn on pop-up blocker and consider using an Ad Blocker and then whitelist just the legitimate sites you wish to support.
        Turn on 'View > Show Status Bar' in safari and use it. Same long press click for web link on iOS
        If you land on site and it pops open windows you can't close. Hold option while you quit Safari.
          This should close down all window so when you open it again you do get back in the window loop.
          You can also launch Safari while holding down option+shift
      Avoid downloading pirated apps and movies etc from the internet. Often contain trojans that then infect you.
      If you suspect you have Maleware, check.
        You are getting strange ads and pop-ups even on legit sites with pop-blocker turned on.
        Use Malwarebytes. Free and awesome! (Formerly Adware Medic)
      Apps to avoid:
        MacKeeper
        Genieo
        Onesearch or VSearch
        Flash installers. If you MUST have Flash consider just using Chrome or at least download direct from Adobe ONLY. Never install when prompted randomly to "update your Flash" from a site you visit.
  Refurbished Apple products
    I got a couple questions about this this week
    Learned that Apple doesn't seem to sell refurbished iPhones
    Ron wanted to get an older iPhone 5c unlocked for a relative and was having a hard time finding one since Apple no longer sells them
      I suggested the Gazelle store, http://buy.gazelle.com, but they don't have any iPhone 6c devices
      There are other resellers on eBay, Amazon, etc if you Google, but I'm not sure I trust them.
    Then Gary sent in a voicemail asking, what does Apple do with all those iPhones if they don't re-sell them?
      He mentioned the recycling story from a couple weeks ago and talked about the $40 million in recovered gold.
        Guess you didn't hear last weeks episode yet eh Gary?
      Apple seems to send them overseas where they do sell "refurbished" to price sensitive markets.
      They are also used as replacement phones.
      They might use some for part, I'm not sure on that.
      Some likely do get recycled.
    Talk about doing you own "refurbishing" or "re-use"
      I will hand my old devices down to family members
    Steps to prep an old device
      Backup or archive any old content you want to keep.
      Log out of iTunes and iCloud.
      Turn off "Find My…"
      Erase the device
        On Mac you can run the OS X installer and then use Disk utility
        On iOS attach to iTunes and do a Restore and setup as new.
          I stop on the "Swipe to setup" screen
    Also, find a new purpose
      backup or file server
      media server
      Weather station, picture frame, etc.
      Cases used as household items, do some Googling.
    Another thing related to this is also finding ways to get by with what you already own and making it last just a bit longer
      Doug wrote in to say he's NOT an every year upgrader and doesn't feel he needs to be despite maybe feeling the pressure sometimes from the community at large.
      We all WANT the latest and greatest stuff, but probably don't always need it.
      Buying used and still be an "upgrade"
      Also look at replacing the HDD in an older Mac with an internal or external SSD to eek out more performance and maybe extend it's life a year or two.
      The longer we keep our devices means fewer devices in the landfills or recycling too and that's good for the environment.
  Thing of the Moment: AT2005USB
    The Audio Technica AT2005USB Mic. About USD $70.00
    The perfect portable recording Mic when paired with a Mac or an iPad or iPhone using Apple's Lightning to USB or USB 3 adapters
    It offers USB and XLR inputs
    On-board headphone monitoring
    Comes with all the cables. USB and XLR, plus a folding tripod stand and a case to carry it all.
Closing
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