Report: Apple's new iPhone 6 could have biggest initial production

Apple is ordering a combined 70 to 80 million units of two big-screen versions of its next iPhone, its largest initial production to date, according to a report in The Wall Street Journal.

The company is anticipating large demand for the so-called iPhone 6 as it will be available with screens measuring 4.7 and 5.5 inches diagonally, the report said, citing unnamed sources.

The 70 to 80 million units by Dec. 30 would be much more than the 50 to 60 million units last year for the iPhone 5S and 5C, which have 4-inch screens. The iPhone 4S has a 3.5-inch display.

Apple has asked component makers to get ready to turn out up to 120 million new iPhones by the end of the year to take into account a possible higher failure rate for displays, the report said.

Manufacturing the 5.5-inch screen could be tricky because of the complexity of integrating touch sensors into the LCD, it said, adding that using sapphire crystal instead of glass for the display would add to the difficulty.

The new screen size has been the subject of much speculation as displays have taken up more phone real estate in recent years.

Until 2011, 4 inches was the largest screen for most phones on the market, but it has become the minimum since 2013.

Apple rival Samsung posted an ad on YouTube on Monday that depicts an iPhone user with “screen envy” while ogling the Galaxy S5, which has a 5.1-inch screen.

Apple did not immediately respond to a request for comment on the report.

Taiwan's Quanta to start mass production of Apple's smartwatch in July - source

A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in downtown Shanghai September 10, 2013.

(Reuters) - Taiwan's Quanta Computer Inc will start mass production of Apple Inc's first smartwatch in July, a source familiar with the matter said, as the U.S. tech giant tries to prove it can still innovate against rival Samsung Electronics Co Ltd.

The still-unnamed watch, which Apple followers have dubbed the iWatch, will be the company's first foray into a niche product category that many remain skeptical about, especially as to whether it can drive profits as growth slows in tech gadgets.

The production will be a boost to Quanta, whose work for Apple so far has focused on laptops and iPods, product lines that are in decline. Quanta's role, though, is likely to raise questions about what involvement Hon Hai Precision Industry Co, one of Apple's biggest suppliers, will play in production.

While the watch has been widely expected, the start date of its mass production and the extent of Quanta's involvement were not known until now. Mass production will start in July and the commercial launch will come as early as October, according to the source and another person familiar with the matter. The sources requested anonymity because Apple's production plans are private.

Apple will introduce a smartwatch with a display that likely measures 2.5 inches diagonally and is slightly rectangular, one of the sources said. The source added that the watch face will protrude slightly from the band, creating an arched shape, and will feature a touch interface and wireless charging capabilities.

The source said Apple expects to ship 50 million units within the first year of the product's release, although these types of initial estimates can be subject to change. The watch is in trial production at Quanta, which will be the main manufacturer, accounting for at least 70 percent of final assembly, the source said.

Like many other smartwatches, Apple's watch will be able to perform some functions independently, but tasks like messaging and voice chat will require connection to a smartphone, according to the source. The device will only be compatible with gadgets running Apple's iOS, like its flagship iPhone, one of the sources said. Most mainstream smartwatches collect data about the user's heart rate and other health-related metrics, in addition to facilitating tasks like checking e-mail and making phone calls.

A third source said LG Display Co Ltd is the exclusive supplier of the screen for the gadget's initial batch of production. It also contains a sensor that monitors the user's pulse. Singapore-based imaging and sensor maker Heptagon is on the supplier list for the feature, two other sources said.

Apple declined to comment. Quanta, LG Display and Heptagon also declined to comment.

GAME-CHANGER? Apple's smartwatch will follow similar devices by Samsung, Sony Corp, Motorola and LG Electronics Inc - gadgets that tech watchers say have not been appealing or user-friendly enough to ignite a wave of mass adoption. But the market is growing fast, with data firm IDC saying that worldwide shipments of wearable computing devices, including smartwatches, will triple this year over 2013. Apple has already dropped hints of its plans in this arena, hiring the former chief executive of French fashion house Yves Saint Laurent, a unit of Kering SA, and proclaiming that it will introduce "new product categories" this year. Many are hoping that Apple's entry into the field of so-called smart wearables will transform the industry like the company's iPhone did in 2007. Some forecast that smartphone sales, the current cash cow of the consumer tech world, will lose momentum as the market reaches saturation. IDC predicts that worldwide smartphone sales will increase 23 percent this year, slower than the 39 percent last year, and that annual growth will average only 12 percent from 2013 to 2018.

(Reporting by Michael Gold; Additional reporting by Reiji Murai in TOKYO, Christina Farr in SAN FRANCISCO, Jeremy Wagstaff in SINGAPORE and Vincent Lee in SEOUL; Editing by Rachel Armstrong, Bernard Orr and Richard Chang)

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iOS 8 split-screen hints at iPad's enterprise ambition

Apple will debut a split-screen feature for the iPad in this year's iOS 8, tilting its tablet toward PC-like functionality and mimicking a core feature of Microsoft's Windows 8 on tablets, according to a report Tuesday.

If the claim by 9to5Mac turns out accurate, the move would be as logical as they come, said Ezra Gottheil, an analyst with Technology Business Research.

"It's sort of a no-brainer," said Gottheil. "Two apps [on the screen at the same time] do not really complicate the simplicity of the iPad, and people have grown up with the idea of multiple windows. And this is a direction Apple has been going for a while. First they didn't have multi-tasking, then they had a limited form of multi-tasking."

Apple introduced that limited multi-tasking in 2010 with iOS 4, and subsequently expanded the eligible apps (iOS 5; 2011) before opening up the functionality to all apps (iOS 7; 2013).

But iOS has never allowed two apps to simultaneously display on the screen, or beyond simple copy/paste, allowed multiple apps to interact with each other. Instead, each app appears in a full-screen mode, and interaction is clumsy and limited.

9to5Mac, which cited "sources with knowledge of the enhancement in development," said that iOS 8 will offer a split-screen mode when the tablet is held in landscape orientation, and provide developers with tools so that they can design apps able to interact with other apps.

"With split-screen, Apple would have a more viable student device," said Gottheil, thinking about the approaching back-to-school sales season. "You really can't live on an iPad as it is now."

Apple will unveil iOS 8, trumpet a handful of its new features, and give registered developers preview code on June 2, the opening day of the company's Worldwide Developers Conference. By past practice, it should launch in September, maybe even late August.

A split-screen on the iPad also fits with other moves Apple is likely to make in the near future, said analysts.

"The consumer market for tablets is peaking and growth is going to be in business," said Bob O'Donnell, principal analyst at Technalysis Research. "Demand for multi-tasking and multi-apps is significantly higher for business than for consumers. So I wouldn't be surprised if Apple does this, because it would partly be a reflection of where tablet growth will be."

Analysts, both from the technology industry and Wall Street, have pointed out a recent slowing of iPad sales, and to varying degrees, concluded that Apple's run may be over as cheaper Android-powered tablets begin to dominate the volume lists.

Apple's CEO, naturally, does not agree. But during last month's earnings call, Tim Cook did spend time talking up the iPad's opportunities in two non-consumer markets, education and the enterprise.

"What we have to do in enterprise is focus on penetration," said Cook of the iPad last month. "It has to be deeper and broader." In other words, sell more iPads.

Carolina Milanesi, chief of research at Kantar Worldpanel ComTech, heard Cook's comments, too, and wondered how much significance to give them. Her conclusion: Apple will expand the iPad line, probably with a model sporting a larger 12-in. display. And that size says "business" or, at least, "productivity."

"They can't do a 12-in. iPad as just a piece of glass," she said, referring to consumption tasks like watching video or reading books, e-magazines and websites. "So what are they going to give it?"

Her immediate thought was a tablet able to handle more of the tasks traditionally associated with personal computers, the kind of content creation exemplified by Microsoft Office, which hit the iPad at the end of March.Her thinking wasn't from left field, as Cook spoke kindly about Office last month, perhaps giving Apple-ologists another clue of its iPad intentions. "I do see that Office is still a very key franchise in the enterprise, in particular," Cook said. "And I think having it on iPad is good, and I wholeheartedly welcome Microsoft to the App Store to sell Office. Our customers are clearly responding in a good way that it's available. So, I do think it helps us, particularly in the enterprise area."

An iPad designed with Office's kind of productivity in mind would benefit enormously from split-screen -- Word open on one side, Excel on the other -- probably also a detachable keyboard, making it the kind of hybrid 2-in-1 modeled by Microsoft's Surface and similar devices from other Windows OEMs.

"Split-screen gives you something to do with all that space of a larger iPad," said Patrick Moorhead, principal analysts at Moor Insights & Strategy. "So it fits in with the rumored larger commercial device."

Like O'Donnell, Moorhead saw an Apple push, whether explicit or through the backdoor of BYOD (bring your own device), as a way to grow sales. "It's really about what they have left to conquer, isn't it?" said Moorhead. "The last bastion [of the PC] is the commercial market. And although the iPad has been pretty successful in the vertical [business] markets, with a side-by-side [multi-app view] it would give the iPad more of a horizontal commercial application."

But some remain skeptical of the split-screen rumor.

"iOS gaining access to multiple screens would chip away at another advantage the Mac has versus the iPad," noted Ross Rubin of Reticle Research on hisTechpressive blog.

Apple has become famous for its stance on cannibalization -- it's always better to cannibalize oneself rather than let someone else do it, and rake in the dollars you're losing -- so perhaps that wouldn't stop Apple. Except Cook has slammed 2-in-1s, devices that try to be a part-time tablet, a part-time PC, once deriding them as akin to creating acombination toaster-refrigerator, then again as "a fairly compromised and confusing product" analogous to "a car that flies and floats."

That doesn't mean Apple wouldn't add split-screen to iOS, nor that it would never build a bigger iPad. There's plenty of time for Apple to change its mind, as it has notably in the past on big decisions like the iPad Mini or selling e-books. Notably, Cook hasn't mocked hybrids since 2012.

"Businesses move much, much more slowly than the world actually thinks," said O'Donnell, implying that Apple doesn't have to shove its way into the enterprise overnight. "Businesses are notoriously conservative."

"Apple may want to keep the MacBook and iMac as their PCs," said Milanesi, "but they have to be wondering about the next step for the iPad, too, because as time goes by, the line between the two is going to get very, very blurred."

iPhone 6 said to be unveiled in June in two large-screen sizes

The rumor mill on Apple's newest smartphone and purported iWatch is starting to heat up with hints at possible manufacturing partners and release dates.

The iPhone 4S (left) next to the iPhone 5.

(Credit: CNET)

Rumors are already starting to roll in about Apple's purported iPhone 6, according to Apple Insider. The newest claims come from Chinese analyst Sun Changxu, who told Chinese-language Web site QQ Tech that the smartphone will come in two large-screen sizes and could be unveiled as soon as June.

According to Changxu, the upcoming iPhone 6 will most likely have a 4.7-inch, 1,136-pixel-by-640 pixel display. Changxu said that Apple could release another smartphone shortly later that has a higher-resolution 5.7-inch display. Word has it that Apple will reveal its new smartphone at its Worldwide Developers Conference in June.

Several sources have already speculated that Apple's next iPhone will come in a larger size. In October, a handful of reports said the screen size will jump to almost 5 inches from the current 4 inches. Some analysts even pegged possible screen sizes at anywhere from 5.7 inches to 6 inches. Similarly, a report last week from DisplaySearch said the iPhone 6 could have a 5.5-inch 1920 pixel-by-1080 pixel display.

During an event launching the iPhone on China Mobile last week, Apple CEO Tim Cook was asked whether Apple might launch an iPhone with a bigger screen or flexible display. All Cook would say, in essence, is that customers can expect some nice updates in the future.

"We never talk about future things," Cook said. "We have great things we are working on but we want to keep them secret. That way you will be so much happier when you see it."

Meanwhile, the rumored iWatch is also getting its share of speculation. According to G for Games, Apple's supposed computerized wristwatch is said to have a flexible OLED display from LG. Reportedly, LG has finalized a partnership with Apple to make 1.52-inch OLED displays for the watch. Production is said to begin later this year.

There's been talk of a purported iWatch for about a year now, yet no conclusive signs of any device have appeared. In October it was rumored that LG Display was close to signing a deal with Apple to provide the OLED displays. However, the release of the device is said to have been delayed due to screen technology decisions, battery issues, and corporate shuffling.