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Apple's iPhone 13 leads to company's largest revenue and profit in history, despite parts shortages

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Apple's iPhone 13 leads to company's largest revenue and profit in history, despite parts shortages

Apple's iPhone marked its 15th year on the market with its strongest sales ever, helping push the tech giant's sales and profits to all-time highs despite the continued spread of the coronavirus pandemic and supply chain constraints.

The demand for Apple's smartphone, in a line ranging from the $699 iPhone 13 Mini to the $1,099 iPhone 13 Pro Max, was so high during the three months ending in December, that sales rose more than 9%, to $71.6 billion. That was more than half the company's overall revenue, which itself rose to $123.94 billion, up double digits from last year.

Apple CEO Tim Cook noted that the iPhone held top market-share spots around the world, including in the US and Australia, where it was among the top five, China, where it was among the top four, and the UK, where it nabbed two of the top three slots. 

"We knew that we had the beginnings of something fundamentally transformative," Cook said in a conference call with analysts, remarking on the iPhone's 2007 launch. "None of us could have predicted the incredible and meaningful impact it would have on all of our lives."

Apple's stock rose more than 3%, to $163.73 per share, after closing regular trading roughly flat for the day. Investors pushed the company's shares above $3 trillion for a short period earlier this month before they fell about 12% with broader market fluctuations.

Apple's latest financial disclosures are just the most recent sign of how the coronavirus pandemic has affected the world economy in radically different ways. Though many businesses are struggling, our reliance on big tech appears to be fueling increased financial performance across the industry. But the success isn't the same for all these companies.

The iPhone 13 Pro, making a splash.

Andrew Hoyle/CNET

Microsoft, which announced last week that it plans to buy game maker Activision Blizzard for an eye-watering $68.7 billion, said its second fiscal quarter sales jumped 20%, while profits rose 21%. Netflix, meanwhile, said its subscriber base grew slower than expected during the holidays. Crucially, the company forecast subscriber growth far below analyst expectations, prompting its stock to plummet 25% after the news.

Even Apple had a dark spot in its report. The company's CFO, Luca Maestri, said continued supply chain issues cost Apple more than $6 billion in sales over the holidays, something he hopes will decrease by March.

"The level of constraint will depend a lot on other companies -- what will be the demand for chips from other companies and other industries. It's difficult for us to predict, so we try to focus on the short term," he told Reuters in an interview Thursday.

Apple said iPad sales in particular were affected, marking an uncharacteristic drop of 14% during the holidays amid "very significant" supply shortages and in spite of "very strong" demand across its product line.

"Despite the supply shortages, our installed base of iPads reached a new all-time high during the quarter," Maestri said on the conference call with analysts. He added that about half the customers purchasing an iPad were new to the product.

Apple's latest MacBook Pro laptops got positive marks from reviewers and customers.

Dan Ackerman/CNET

Breaking records

The iPhone wasn't Apple's only bright spot. The company said sales of its Mac computers were also strong, rising more than 25%, to nearly $10.9 billion, bolstered by newly redesigned MacBook Pro laptops. Apple said much of the customer demand is in response to the new M1 chip, meant to replace the microprocessing brains that Apple used to rely on from Intel. Cook said that's helped bring in new customers, in addition to upgraders.

"Customer satisfaction is off the charts," Cook said.

Apple's "wearables, home and accessories" division, which handles things like AirPods and HomePods, posted sales of more more than $14.7 billion, up more than 13%. And its services business, which oversees the $5 per month Apple TV Plus subscription service and the new $10 per month Apple Fitness Plus offering, saw sales rise to more than $19.5 billion. Apple said it now counts 785 million paid subscriptions across its business lines.

All told, Apple said it notched profits of nearly $34.6 billion, up 20% from the same period last year. That translates to $2.10 per share in profit, off $123.9 billion in overall revenue, which itself was up more than 11% from the $111.44 billion reported last year. It was also enough to beat average analyst estimates, which were $1.89 per share in profits on $118.66 billion in revenue, according to surveys published by Yahoo Finance.

All that has contributed to Apple's cash pile, which is now more than $202 billion.

Apple's iPhone 13 Pro.

Stephen Shankland/CNET

Still about the iPhone

Though Apple's various businesses are reporting record demand, the iPhone is still the company's most important product. It represented nearly 58% of Apple's overall revenue, and it's an anchoring product that many of the company's most popular accessories are built around, including the AirPods and the Apple Watch.

But Apple has also faced repeated questions about how to keep the product fresh despite annual updates. The iPhone 13's key improvements included its battery life, screen quality and cameras. The iPhone 12, meanwhile, offered the company's first major redesign in years, as well as the first inclusion of 5G ultrafast wireless and newly hardened front glass, which Apple called "ceramic shield."

The iPhone has become "an integral part of so many people's lives now more than ever," Cook said, noting that the active install base continues to grow, currently sitting at an all-time high. (Apple has previously said it counts more than 1 billion active iPhones worldwide, but it has since switched to publishing counts of all active devices. Apple said it counted 1.8 billion active devices over the holidays, up from 1.65 billion the same time last year, and 1.5 billion in 2020.)

Cook added that he expects 5G wireless will continue to drive further sales as people upgrade and switch to Apple devices. "Even though this is the second product announcement that has 5G in it, we're really in the early innings of 5G," he said, noting that customer surveys outside Apple have indicated that many people still haven't upgraded. "We maintain a very optimistic view on long term."

As to the future, Cook noted that Apple has been increasing its research-and-development spending more than normal, most recently raising it more than 22% during the holidays, to $6.3 billion. "There are areas that have more than piqued our interest, and we are investing in those," he added. "There's quite a bit of investment going into things that are not on the market at this point, as there always are."

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Apple's M2 Chip Gives New MacBook Air a Speed Boost

Apple's M2 Chip Gives New MacBook Air a Speed Boost

This story is part of WWDC 2022, CNET's complete coverage from and about Apple's annual developers conference.

Apple on Monday debuted the new M2 processor, a chip that improves core processing performance 18% over the M1 without hurting battery life in the company's new MacBook Air and 13-inch MacBook Pro laptops.

The 18% speed boost comes from the M2's redesigned central processing units. The processor has four fast CPU cores and four efficient cores, a hybrid approach drawn from the smartphone world. By redesigning the graphics processing units and increasing their count up to a maximum of 10 instead of eight for the M1, GPU performance is 35% faster. Overall, the new MacBook Air is 20% faster at Photoshop image editing and 38% faster at Final Cut Pro video editing, Apple said.

"We continue to have a relentless focus on power-efficient performance," Johny Srouji, Apple hardware team leader, said at the Worldwide Developers Conference.

Power efficiency is crucial to shrinking laptops since the biggest component is the battery. The new MacBook Airs take up 20% less volume but still have a long, 18-hour battery life, Apple said. The company also is using the M2 in a new 13-inch MacBook Pro.

Apple's M2 processor has large amounts of high-speed cache memory built onto the chip itself and up to 24MB of regular memory included in the chip package, two attributes that should boost performance over Apple's 2020-era M1.

Apple/Screenshots by Stephen Shankland/CNET

The M2 processor also has a significant memory boost, reaching up to 24GB instead of 16GB for the M1. Memory is important, especially as software gets bigger and laptops have years-long lifespans. M series chips build memory directly into the processor package for fast performance, but it's not upgradable.

Apple debuted the M1 at 2020's WWDC and began shipping it later that year in the earlier version of the MacBook Air. The M1, along with beefier successors called the M1 Pro, M1 Max and M1 Ultra, struck an effective balance between performance and battery life and earned strong reviews.

The M2 doubles down on the same balanced approach, offering updated processing cores that are variants of the chips at the heart of newer iPhones. The new chips continue the gradual ejection of Intel processors from the Mac family of personal computers and could enable the last Intel-powered member, the Mac Pro, to switch to Apple chips.

Designing processors is an expensive, difficult undertaking. But with the M series chips, Apple takes advantage of the A series chip design work it already does for its iPhones and iPads, then pays Taiwan Semiconductor Manufacturing Co. to build the chips on its advanced product lines. 

The M2 is built on TSMC's 5nm (5 nanometer) manufacturing process, but it's an improved version to the one used for the M1. TSMC is working on a more advanced 3nm process that should let customers squeeze in somewhat more transistors, the core electronics elements that process data on a chip.

The M2 has 20 billion transistors, a 25% increase over the M1, Apple said.

One use of the new transistors is the increased GPU count. Another is an upgraded neural engine -- a chip block used to accelerate artificial intelligence workloads. The new 16-core neural engine can perform 15.8 trillion operations per second, Apple said, a 40% speed boost.

With its own chips, Apple gets more control over the technology foundation of its products -- a principle important to Chief Executive Tim Cook. That includes both the processor itself, with specific features like AI acceleration, video encoding, and security, and the software Apple writes to take advantage of those features.

Apple's M series and A series chips are members of the Arm processor family. UK-based Arm licenses designs that companies can customize to varying degrees. Arm chips from Qualcomm, Apple, MediaTek, Samsung, Google and others power just about every smartphone for sale.

The Apple M2 processor is significantly larger than the M1. That increases manufacturing costs. Apple raised prices for its M2-based MacBook Air laptops.

Apple/Screenshot by Stephen Shankland/CNET

Intel has struggled over most of the last decade with problems advancing its manufacturing. That stalled its progress while Apple, Qualcomm, AMD, Nvidia and other Intel rivals took advantage of TSMC's manufacturing progress.

Because Apple doesn't offer its chips to others, and because the majority of PCs use Intel processors, Intel is somewhat insulated from Apple's shift. Intel is working to modernize its manufacturing, spending tens of billions of dollars on new chipmaking fabs. Intel aims to reclaim its lead over rivals TSMC and Samsung in 2024.

Intel's newest PC processor, code-named Alder Lake, embraces the same mix of high-performance and high-efficiency CPU cores found in smartphone chips and Apple's M series chips. Future products are designed to improve GPU performance, in particular with Intel's renewed focus on high-end graphics that's designed to wean the company from reliance on AMD and Nvidia. That's important for one big market, gaming, where PCs with Intel and AMD processors are much more widely used than Macs.

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https://smartfrenq.costa.my.id/

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How the Apple Watch Could Become an Even Better Fitness Tracker

How the Apple Watch Could Become an Even Better Fitness Tracker

The Apple Watch, like many modern health trackers, can measure an almost dizzying number of statistics. It added blood oxygen saturation measurements to that growing list in 2020, and reports from The Wall Street Journal and Bloomberg suggest a temperature sensor could be next. But what I really want is more ways to make sense of that data... and more context to go along with it. 

Who knows whether any of these capabilities will ever arrive on the Apple Watch. Apple is doing a lot of things right, but there's room for improvement. 

More customization for daily goals

A day doesn't feel complete if I don't have at least one Activity Ring. But not every day is the same, and the Apple Watch shouldn't act like it should be: I want different move and exercise goals depending on the day of the week. On days when I'm commuting to the office and know I'll have time for a long workout, I'd like to set higher goals for my exercise minutes and burned calories. 

I also imagine setting a schedule like this could be helpful for building a regular exercise routine. While you can change your activity goals anytime on the Apple Watch, there's no way to customize goals according to specific days. – Lisa Eadicicco, Senior Editor

Apple Watch's Workout app.

Lexy Savvides/CNET

Scores for readiness and sleep

After living off and on with the Oura Ring and several Fitbit trackers for the last few years, I've gotten really used to having both sleep tracking and a holistic type of daily "readiness score" as part of my daily watch feedback. A readiness score indicates whether your body is rested enough for a heavy workout or if you should skip the gym. The score takes a variety of factors into account, such as sleep, recent activity and heart rate variability among other metrics. 

Similarly, a sleep score indicates the quality of your slumber through statistics like time spent asleep and whether you were tossing and turning, along with other elements. Both Oura and Fitbit offer their own versions of sleep and readiness scores. 

To be sure, readiness scores and sleep scores aren't necessarily perfect predictors of anything, but neither are daily activity rings. I find the calculation of activity, sleep, heart rate and other factors boiled into an overall score interesting as a correlative snapshot of how I might be feeling. 

Both Fitbit and Oura also fold temperature into the mix: Changes in body temperature, resting heart rate and breathing rate could possibly flag a change in how well I'm feeling. Again, it's not perfect, but Apple seems well overdue to add these features to the Apple Watch. – Scott Stein, Editor atLarge

The Apple Watch could improve how it tracks rest.

Lexy Savvides/CNET

More focus on recovery

I'd love to see the Apple Watch lean more into recovery and rest. If the past couple of years have taught me anything, it's the importance of listening to my body. The activity rings are a great way to motivate me to move, but some days it's just not practical to close them -- especially if you feel unwell. Let's have a flag or toggle on the watch to signal when you need a rest day. And perhaps adjust the Move circle to instead reward that recovery or mindful rest.

With all the health data the Apple Watch already gathers, like heart rate variability, sleep and overall activity, it makes sense to consolidate this all into an easy-to-understand metric. Maybe it's a score like Scott mentioned. Or it could be another ring that is automatically filled with how "ready" you are and changes daily based on your body's responses. 

With the mindfulness app in WatchOS 8 and meditation activities within Fitness Plus, Apple already has the tools to support rest and recovery. Let's see it come full circle. – Lexy Savvides, Principal VideoProducer

The Apple Watch could perhaps do more with AirPods.

Sarah Tew/CNET

AirPods health tracking with Apple Watch

There's huge potential for AirPods to pair even more closely with the Apple Watch -- beyond just music. Perhaps it's measuring heart rate or blood pressure from the ear to complement the existing heart-health features on the Apple Watch. Maybe it's even more robust with your ear acting as an additional lead for the electrocardiogram app. Ming-Chi Kuo, an analyst at TF International Securities known for his Apple product predictions, sees promise here, too. He pointed to the addition of health management functions as a potential way for Apple to grow AirPods shipments in the future, according to an investors note MacRumors viewed. – LexySavvides

The Apple Watch could also try out weekly goals as seen on Amazon's Halo app.

Lexy Savvides/CNET

Weekly fitness goals

The Apple Watch's Activity Rings are an excellent reminder to get up and move every day. Unfortunately, I haven't found an equivalent that's as motivating for quantifying progress on a weekly basis.

Amazon's Halo app and fitness tracker made me realize the value of setting activity goals by the week instead of by the day. Instead of a daily goal, Amazon sets a weekly objective of 150 points that you earn by being active. (Points are subtracted if you're sedentary for too long, too.) Measuring weekly activity gives me a better snapshot of how active I generally am throughout the whole week. I could have an extremely busy day and exceed my Apple Watch's move goal, but that might be a fluke. A weekly target may make it easier to establish consistency. 

Plus, measuring weekly activity makes every bit of movement feel like it counts. A brisk walk to the subway won't be enough to close my Apple Watch's daily Activity Rings, so it almost feels pointless. But it's comforting to know it's contributing toward my weekly Halo activity goal. I'm not saying Apple should replace daily goals with weekly ones, but it would be nice to at least have the option. 

There are other ways to track weekly and monthly progress on the Apple Watch, but none of them have felt as rewarding as closing an Activity Ring. For example, you can view your weekly and monthly activity in Apple's Fitness app. There's also a section in the app that shows how your last 90 days of activity are trending compared to the previous 365 days. Apple also rewards you with special app badges for meeting certain milestones, like working out all seven days in the same week or reaching your move goal 500 times. – Lisa Eadicicco

The Amazon Halo View.

Lisa Eadicicco/CNET

Apple never discusses product plans before publicly announcing them, so there's no telling whether any of these wish list features will become a reality. We're expecting to learn about the Apple Watch's next major software update at the company's Worldwide Developers Conference in June, and the company typically announces new Apple Watch models in the fall. If Apple's history is any indication, we can expect health and wellness to be a large part of both announcements. 

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https://nichols.my.id/how-to-repair-dyed-damaged-hair.html

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How the Apple Watch Could Become an Even Better Fitness Tracker

How the Apple Watch Could Become an Even Better Fitness Tracker

The Apple Watch, like many modern health trackers, can measure an almost dizzying number of statistics. It added blood oxygen saturation measurements to that growing list in 2020, and reports from The Wall Street Journal and Bloomberg suggest a temperature sensor could be next. But what I really want is more ways to make sense of that data... and more context to go along with it. 

Who knows whether any of these capabilities will ever arrive on the Apple Watch. Apple is doing a lot of things right, but there's room for improvement. 

More customization for daily goals

A day doesn't feel complete if I don't have at least one Activity Ring. But not every day is the same, and the Apple Watch shouldn't act like it should be: I want different move and exercise goals depending on the day of the week. On days when I'm commuting to the office and know I'll have time for a long workout, I'd like to set higher goals for my exercise minutes and burned calories. 

I also imagine setting a schedule like this could be helpful for building a regular exercise routine. While you can change your activity goals anytime on the Apple Watch, there's no way to customize goals according to specific days. – Lisa Eadicicco, Senior Editor

Apple Watch's Workout app.

Lexy Savvides/CNET

Scores for readiness and sleep

After living off and on with the Oura Ring and several Fitbit trackers for the last few years, I've gotten really used to having both sleep tracking and a holistic type of daily "readiness score" as part of my daily watch feedback. A readiness score indicates whether your body is rested enough for a heavy workout or if you should skip the gym. The score takes a variety of factors into account, such as sleep, recent activity and heart rate variability among other metrics. 

Similarly, a sleep score indicates the quality of your slumber through statistics like time spent asleep and whether you were tossing and turning, along with other elements. Both Oura and Fitbit offer their own versions of sleep and readiness scores. 

To be sure, readiness scores and sleep scores aren't necessarily perfect predictors of anything, but neither are daily activity rings. I find the calculation of activity, sleep, heart rate and other factors boiled into an overall score interesting as a correlative snapshot of how I might be feeling. 

Both Fitbit and Oura also fold temperature into the mix: Changes in body temperature, resting heart rate and breathing rate could possibly flag a change in how well I'm feeling. Again, it's not perfect, but Apple seems well overdue to add these features to the Apple Watch. – Scott Stein, Editor atLarge

The Apple Watch could improve how it tracks rest.

Lexy Savvides/CNET

More focus on recovery

I'd love to see the Apple Watch lean more into recovery and rest. If the past couple of years have taught me anything, it's the importance of listening to my body. The activity rings are a great way to motivate me to move, but some days it's just not practical to close them -- especially if you feel unwell. Let's have a flag or toggle on the watch to signal when you need a rest day. And perhaps adjust the Move circle to instead reward that recovery or mindful rest.

With all the health data the Apple Watch already gathers, like heart rate variability, sleep and overall activity, it makes sense to consolidate this all into an easy-to-understand metric. Maybe it's a score like Scott mentioned. Or it could be another ring that is automatically filled with how "ready" you are and changes daily based on your body's responses. 

With the mindfulness app in WatchOS 8 and meditation activities within Fitness Plus, Apple already has the tools to support rest and recovery. Let's see it come full circle. – Lexy Savvides, Principal VideoProducer

The Apple Watch could perhaps do more with AirPods.

Sarah Tew/CNET

AirPods health tracking with Apple Watch

There's huge potential for AirPods to pair even more closely with the Apple Watch -- beyond just music. Perhaps it's measuring heart rate or blood pressure from the ear to complement the existing heart-health features on the Apple Watch. Maybe it's even more robust with your ear acting as an additional lead for the electrocardiogram app. Ming-Chi Kuo, an analyst at TF International Securities known for his Apple product predictions, sees promise here, too. He pointed to the addition of health management functions as a potential way for Apple to grow AirPods shipments in the future, according to an investors note MacRumors viewed. – LexySavvides

The Apple Watch could also try out weekly goals as seen on Amazon's Halo app.

Lexy Savvides/CNET

Weekly fitness goals

The Apple Watch's Activity Rings are an excellent reminder to get up and move every day. Unfortunately, I haven't found an equivalent that's as motivating for quantifying progress on a weekly basis.

Amazon's Halo app and fitness tracker made me realize the value of setting activity goals by the week instead of by the day. Instead of a daily goal, Amazon sets a weekly objective of 150 points that you earn by being active. (Points are subtracted if you're sedentary for too long, too.) Measuring weekly activity gives me a better snapshot of how active I generally am throughout the whole week. I could have an extremely busy day and exceed my Apple Watch's move goal, but that might be a fluke. A weekly target may make it easier to establish consistency. 

Plus, measuring weekly activity makes every bit of movement feel like it counts. A brisk walk to the subway won't be enough to close my Apple Watch's daily Activity Rings, so it almost feels pointless. But it's comforting to know it's contributing toward my weekly Halo activity goal. I'm not saying Apple should replace daily goals with weekly ones, but it would be nice to at least have the option. 

There are other ways to track weekly and monthly progress on the Apple Watch, but none of them have felt as rewarding as closing an Activity Ring. For example, you can view your weekly and monthly activity in Apple's Fitness app. There's also a section in the app that shows how your last 90 days of activity are trending compared to the previous 365 days. Apple also rewards you with special app badges for meeting certain milestones, like working out all seven days in the same week or reaching your move goal 500 times. – Lisa Eadicicco

The Amazon Halo View.

Lisa Eadicicco/CNET

Apple never discusses product plans before publicly announcing them, so there's no telling whether any of these wish list features will become a reality. We're expecting to learn about the Apple Watch's next major software update at the company's Worldwide Developers Conference in June, and the company typically announces new Apple Watch models in the fall. If Apple's history is any indication, we can expect health and wellness to be a large part of both announcements. 

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Apple Now Allows Apps in South Korea to Use Third-Party Payment Systems

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Apple Now Allows Apps in South Korea to Use Third-Party Payment Systems

Apple said on Thursday that apps exclusively released in the South Korean App Store can use third-party payment systems to take in-app payment. The move comes after South Korea last year amended its Telecommunications Business Act, which banned app stores from forcing developers to use its first-party payment systems. Google complied with the law in November, and now Apple follows suit.  

The South Korean law clamps down on app stores in an effort to rein in tech giants, who've been called out for their monopoly over in-app payments. Apple, in particular, has been criticized for the commission it charges to use its payment system, which critics have dubbed the "Apple Tax." The tax gives Apple up to a 30% cut on subscriptions and in-app purchases. This has been the source of many developer complaints throughout the years. 

Though developers can request to use a third-party payment system for apps exclusively distributed in South Korea, Apple will still take a 26% commission for payments made through these systems. If an app is available globally, developers must create another version of the app for distribution solely on the App Store in South Korea. 

Apple warns that users will not have access to some App Store features if developers choose to go this route, including features like Ask to Buy and Family Sharing. Moreover, Apple won't be able to assist users with refunds, purchase history, subscription management and the like. Instead, developers will now be responsible for these features, and they must report all sales to Apple each month.

Both Apple and Google opposed the South Korean law, citing the benefits of its first-party system. Namely, both tech giants argued that allowing a third-party payment system undermines their users' safety and privacy on their app stores, increasing the risk of fraud. 

Lawmakers around the globe are looking to establish limits for big tech. The US Congress is working on a slate of bills aimed at antitrust and privacy that would change the way that tech giants do business. 

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Apple's new 2021 iPad Pro: What to expect from Apple's April 20 event

Apple's new 2021 iPad Pro: What to expect from Apple's April 20 event

The 2020 iPad Pro arrived at the beginning of a year-long (and counting) pandemic, back in mid-March 2020. It's likely due for an upgrade soon, maybe at next week's Apple event. But what can it add to make a difference this year? Think processors and accessories, based on recent reports that the hardware could get a new chip and a Thunderbolt port, and possibly a display boost too. But, what will be possible in the middle of a chip and display shortage?

That 2020 model didn't have much of a processor bump, and looked nearly the same as the model from 2018. It did introduce some new tech and accessories, though: It was the first Apple product to have a depth-sensing lidar sensor, and Apple introduced a trackpad-enabled Magic Keyboard case (that costs as much as an entry-level iPad).

Apple's recent Macs got massive performance boosts from Apple's M1 processors, which already feel like advanced versions of the chips that were already in the iPad Pro. 

2021 seems like a perfect time to give the Pro line processor boosts, and that's exactly what recent reports have indicated. But it's unclear whether the iPad Pro will get the M1 that recent Macs have used, or a different custom processor, like an A14X. The next iPads could also improve how accessories connect, possibly evolving the USB-C port to add Thunderbolt speed and connectivity. Display upgrades also seem overdue, and Mini LED seems like a lock for at least the 12.9-inch iPad Pro, according to the latest report from Bloomberg... if supplies aren't limited. Here's what we expect.

A better display

The iPad Pro display is great, and its 120Hz refresh rate still isn't available on any other iPhone or iPad. But a shift to OLED (or in the meantime, Mini LED) feels overdue. Especially since the iPad Pro is aimed at graphic designers, photo editors and people looking for perfect displays.

If the iPad Pro gets a Mini LED display, which should offer deeper black levels similar to OLED, it may only arrive on the 12.9-inch model, and could be in shorter supply for a while. But, while a nicer display would be appreciated, the existing iPad Pro display is still really, really good.

Will the iPad Pro and the MacBook Air have the same M1 processor? If so, how similar will they become?

Scott Stein/CNET

An M1 processor (or, something nearly as good)

The A12Z processor on the 2020 iPad Pro is, to be clear, still fast. But it wasn't much faster in benchmarks than the A12X processor from 2018, which points to an overdue chip upgrade. There could be an A14Z or A14X processor, that adds extra graphics cores and other boosts over the chip on Apple's recent iPhones and iPad Air. Or, maybe, Apple uses the M1 that's already in the MacBook Air. The M1 seems like the obvious choice, but it's possible Apple will choose to customize a chip more targeted at tablets, leaving out unnecessary M1 features geared towards Macs.

All indications suggest the iPad Pro will have its own A14X chip that will effectively be as fast as the M1 on Macs.

Either way, the results could end up offering an extra boost. But for what? I'd like the already-fast iPad Pro to start being capable of more advanced multitasking. Or, maybe, true second monitor support. 

iPad Pro USB-C hubs already exist, like Sanho's HyperDrive. Thunderbolt could expand options for accessories.

Stephen Shankland/CNET

An expanded Thunderbolt port

The USB-C port on the iPad Pro and iPad Air is a big improvement over Lightning: It works with standard USB charging adapters, and can connect to multiport adapters to get SD cards, or add a monitor or Ethernet. 

Yet there are limits to what the iPad Pro can do compared to a Mac. Thunderbolt would allow expanded and higher-speed external storage, improved monitor connection and more advanced docks.

That could suggest new Apple accessories. 

The Kensington StudioDock turns the iPad Pro into a desktop computer. Could Apple make its own accessory?

Scott Stein/CNET

Will there be an Apple-made dock?

Apple's transformative keyboard case for the iPad Pro took advantage of new support for trackpads in last year's iPadOS update. If the new iPads gain Thunderbolt, maybe Apple will decide to make its own iPad Pro dock. I imagined some sort of turn-your-iPad-into-a-desktop-computer accessory a few years ago. The Kensington StudioDock for iPad Pro and Air shows how the USB-C iPads can already transform into exactly that desktop device with lots of extra ports. Would Apple try its own spin, but with Thunderbolt?

5G

The iPad doesn't have 5G... yet. Since the 2020 iPhones introduced 5G, the iPad Pro would make sense as the next on deck. Apple doesn't even have LTE on any of its laptops, but iPads have had that option almost from the start. That being said, I've found my local 5G to be lacking, and mobile data is an add-on option I don't tend to use. 

A better pencil, maybe

Recent reports claimed that Apple may have a newer version of the Pencil stylus, maybe one that's more compact or have additional touch-based controls (or a new tip?). The second-gen Apple Pencil debuted back in 2018 and there's already iPad stylus fragmentation, with differing levels of support in different iPads for the first- and second-gen Pencils. 

Apple's event invite does seem very squiggly, as if drawn by a Pencil...who knows?

Could Apple shift the front camera placement? (We hope so)

The iPad isn't great for landscape-based video conferencing, because the front-facing camera ends up sitting on one side and making conversations look like I'm staring somewhere else. It would make sense for Apple to change where the front-facing camera is this year. We're all working and schooling from home more than ever, and when we do, we usually do it with the iPad held sideways. Even the Magic Keyboard assumes you're using the iPad that way.

The iPad Pro and Mac already feel like they're overlapping. Will this year's iPad continue to blur the lines?

Scott Stein/CNET

Why not make iPadOS even more expansive (and Mac-like)?

If Apple were to put the M1 in the iPad Pro, it also raises the question of whether Apple would unleash the iPad's software even further. Living with an M1 MacBook Air alongside an iPad Pro reminded me of the iPad's OS limitations, and how a more multitasking-focused, monitor-enabled iPad could feel even more like a full-fledged computer. Now that the iPad already supports trackpads, mice and plenty of peripherals, why not?

My biggest desire for the next wave of iPads isn't about hardware. It's about unleashing the software to make it as versatile as Macs already are. We might not get any closer to bridging iPad and Mac this spring, but I'd still like to see it happen. And we'll probably find out on April 20.

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Apple could signal new coronavirus, chip shortage troubles before iPhone 13 release

Apple could signal new coronavirus, chip shortage troubles before iPhone 13 release

Many people throughout the US opted not to get a life-saving COVID-19 vaccine, despite its widespread availability throughout the spring and summer. Now coronavirus cases and deaths are ticking up across the US as we head into the fall, raising alarms with health officials and, apparently, Apple too.

The tech giant's already told employees it's delaying return-to-office plans until October at the earliest, mirroring moves from 2020 when companies began shifting schedules in response to worsening conditions. Apple was one of the first major companies to warn about disruptions from the coronavirus back in February of last year, a full month before the World Health Organization declared a pandemic and governments around the world started instituting lockdowns. Rumors are already swirling that Apple's next major product announcement will be held virtually as well.

On Tuesday afternoon, it may take another more public step when CEO Tim Cook is inevitably asked questions about the pandemic by Wall Street analysts following the release of the company's fiscal third-quarter results. And more eyes than usual may be on Cook as he speaks.

Apple's fiscal third quarter, which falls in the spring months ended in June, is typically the last earnings release before the company announces its next slate of iPhones. But last year at this time, Cook & Co. warned investors the iPhone would be delayed "a few weeks" from its typical September launch. There's good reason to believe Apple could pull a repeat performance, due to the combination of deepening coronavirus cases around the world and a global semiconductor shortage that major chip buyers and manufacturers warn could delay products for another year or more.

"We have a long way to go yet," Pat Gelsinger, head of chipmaking giant Intel, told the Wall Street Journal last week.

Apple's still expected to report $1 of profit per share, according to analyst surveys published by Yahoo. That would amount to a jump of 50% from the same time a year ago, off nearly $73 billion in revenue.

But larger questions still remain about the coronavirus and the potential disruptions it could cause.

Apple's helped fight coronavirus with new features in its phons, like a list of places to get COVID tests and vaccines.

Apple

While Apple's short-term plans may change due to COVID-19, analysts say they're closely watching its newest iPads, Mac computers and subscription efforts. For years, Apple's fate has been tied to the iPhone, which typically represents about half of the company's annual revenue. But in 2019, Apple started launching new subscription services, including its $5 per month Apple TV Plus for movies and TV, $5 monthly Apple Arcade for games and, last year, Apple Fitness Plus workout classes for $10 per month.

Each has received positive reviews, topped by Apple TV Plus earning 35 Emmy nominations earlier this month, led by its breakout sports comedy Ted Lasso.

Apple's subscriptions have grown to represent almost half of the company's overall services business, adding to its already popular App Store and iTunes music and movie store businesses. "We think services trends could trend more like a recurring revenue stream with less seasonal volatility in the coming years," analysts at Cowen wrote in a report to investors earlier this month.

"We have a long way to go yet."

Pat Gelsinger, CEO Intel

The newest iPads and Mac computers are also garnering positive response. CNET Editor Scott Stein says Apple's home-grown M1 chips are "a leap up" and "dripping with power." And consumers are buying so many of the devices that Apple said it's struggling to keep them in stock.

Apple said it didn't know how long it would struggle to meet demand, but it expects to be "supply-gated, not demand-gated" for the foreseeable future. Loup Ventures analyst Gene Munster said in a blog post that he expects Apple will catch up to demand by the fall, "which leads us to believe the best days are still ahead for Mac and iPad."

Despite the Mac and iPad struggles, the iPhone appears to be humming along. Chatham Road Partners analyst Colin Gillis said in a note to investors that he expects "Phone as Fashion" will push further sales as people "want to show off the latest device" after a year in isolation. Canaccord Genuity analyst T. Michael Walkley, meanwhile, said he believes that 5G wireless is convincing people to open their wallets as well. And Apple's rumored to have already ordered more than 100 million chips for its next-generation iPhone, expected later this year. 

In the meantime, the larger answers about the coronavirus are still unclear. The federal government is continuing to advocate for vaccines, and a potential full FDA authorization for the injections is expected in the coming months. "The vaccine is free, safe and effective," President Joe Biden said in June. Apple CEO Cook's anxiety about the future may be a result of whether anyone's still listening.

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Apple's Next iPadOS Could Make Your Tablet More Like a Laptop, Report Says

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Apple's Next iPadOS Could Make Your Tablet More Like a Laptop, Report Says

This story is part of WWDC 2022, CNET's complete coverage from and about Apple's annual developers conference.

What's happening

iPadOS, the software that runs on Apple tablets, will reportedly get a significant overhaul to make iPads more capable when it comes to serious business.

Why it matters

iPads have been powerful enough for most office tasks for years, but their software has somewhat hindered their versatility.

What's next

We should find out more on Monday at the company's software conference, WWDC.

Apple reportedly has some big updates in store for the iPad. At its annual Worldwide Developers Conference next week, Apple plans to announce significant changes to its iPad software, Bloomberg reports, citing people with knowledge of the matter. 

The iPad's next software update, likely to be called iPadOS 16, will reportedly make it function more like a laptop than a phone. The iPad will also get a redesigned interface that makes it easier to switch between tasks and see which apps are open, according to Bloomberg. 

iPad users will also reportedly be able to resize app windows and handle multiple apps at once. Currently iPads can run apps in full-screen mode -- like on iPhones -- or run two apps side-by-side. A scaled-down version of a third app can be slid in from the side, too.

Apple is also expected to announce the iPhone's next software update, likely iOS 16, at WWDC. The changes expected for the iPhone operating system include the addition of smaller apps, called widgets, to the phone's lock screen. Apple might also announce an always-on display for the iPhone 14.

While the software updates are expected to be announced next week, these updates aren't typically available to the public until the fall.

Apple's mostly online WWDC begins June 6 at 10 a.m. PT (1 p.m. ET, 6 p.m. BST).

Apple didn't immediately respond to a request for comment.

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Is Apple's Beats buy just a remix of HTC's earlier mistake?

Is Apple's Beats buy just a remix of HTC's earlier mistake?

Beats Chairman Jimmy Iovine, HTC CEO Peter Chou, and Dr. Dre. HTC, Beats

Editor's note: Apple on May 28 confirmed that it's buying Beats for $3 billion.

A high-flying smartphone manufacturer is buying the much-ballyhooed Beats music brand in an effort to earn some street cred.

No, I'm not talking about the purported deal between Apple and Beats, which the Financial Times reported earlier Thursday. I'm referring to HTC taking a majority stake in Dr. Dre's company in a deal announced a little more than three years ago.

Investors and company observers alike scratched their head at the $300 million combination, with many, including this reporter, critical about whether the deal would lead to anything fruitful. Well, Apple may have upped the ante with a reported $3.2 billion offer for Beats.

Beats declined to comment. CNET has contacted Apple and HTC for comment, and we will update the story when the companies respond.

Later on Thursday, singer-songwriter Tyrese Gibson posted a video and photo to his Facebook page that offered potential corroboration of an Apple acquisition. The caption on the photo read "Dr Dre ON THE night his deal went public that he did with Apple 3.2 BILLION!!!!" (By Friday morning, the video and photo were no longer viewable on Gibson's Facebook page.)

To get a sense of what Apple might do with Beats, it's critical to see what HTC did (and didn't) do.

HTC's acquisition of the Beats stake stemmed from CEO Peter Chou's love of music and obsession over the audio quality of his devices. After announcing the deal, Chou expressed a desire to integrate Beats' audio experience into its phones.

HTC's Rezound. HTC

HTC created the music-centric Rezound, which came with a pair of Beats earbuds, as part of an exclusive deal with Verizon Wireless. Marquee smartphones such as its HTC One X would have the Beats logo emblazoned on their back cover.

Unfortunately, no one seemed to care.

The Rezound was one of many flops that HTC released in 2011. Part of the problem: the cost of the headphones meant the phone was retailing at a subsidized price of $300, which was a no-no when marquee smartphones were selling for $200.

While the HTC One X was a critically praised phone, it couldn't stand up to the marketing might of the Samsung Galaxy S3. And those who did buy the phone weren't buying it for the Beats brand.

By July 2012, it was clear the deal wasn't working out. HTC said it sold half of its stake back to Beats for $150 million. CNET reported that HTC wasn't meeting all of its financial commitments to Beats.

At that point, HTC was beginning its downward spiral, complete with management shakeups, shrinking market share, and a tumbling stock price.

HTC in September sold off the remaining stake in Beats for $265 million, netting a slight gain on its investment. But given the hype surrounding the original announcement, it's noticeable for how little HTC did with Beats.

From left, Spotify CEO Daniel Ek, Sprint CEO Dan Hesse, Harman CEO Dinesh Paliwal, and HTC CEO Peter Chou at an event last week. Sarah Tew/CNET

Last week, HTC unveiled a special Harman Kardon edition of its HTC One M8, complete with special earbuds and audio software. The HTC One M8, like its predecessor, also comes with front-facing "Boomsound" speakers to better project music and movies. Chou told CNET that it was part of his commitment to improving the audio quality of his phones.

HTC was able to achieve all this without ever making an investment in a company.

If Apple were to buy Beats, it would certainly be in a different situation and have more to play with. In addition to the Beats headphone line, Dr. Dre's company recently launched a subscription streaming service called Beats Music, which AT&T offers on its smartphones. And Apple is a much larger company with dramatically more reach and brand recognition than HTC.

But it's telling that the same kind of head-scratching pontification that occurred when HTC announced its deal is happening all over again.

Update May 9 at 5:25 a.m. PT: Added details of Tyrese Gibson's Facebook posting regarding Dr. Dre and Apple.

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