TIME Tablets

Apple Slated to Launch Larger iPad in Early 2015: Reports

Apple IPads Sales Down
In this photo illustration the rear of an Apple iPad is seen on Aug. 6, 2014 in London, England. Peter Macdiarmid—Getty Images

Insider sources indicate 12.9-in. version is in the works

In the midst of sluggish sales, Apple has been developing larger touch-screen devices in order to see off competition from rivals including Google and South Korean giant Samsung, according to reports.

The new 12.9-in. iPad will be launched in the spring, inside sources told Bloomberg, following the company’s release of a larger 4-in. iPhone next month.

Apple’s 10-in. and 7.9-in. tablets have been unable to maintain a stable consumer base because of the release of larger smartphones by largely Asia-based competitors.

The new iPad’s 12.9-in. screen would be comparable in size to the largest MacBook Air on the market.

[Bloomberg]

TIME Workplace & Careers

Yes, There Is Diversity in Silicon Valley — if You Know Where to Look

Google Celebrates 15th Anniversary As Company Reaches $290 Billion Market Value
Pedestrians walk past Google Inc. signage displayed in front of the company's headquarters in Mountain View, California, U.S., on Friday, Sept. 27, 2013. David Paul Morris—Bloomberg / Getty Images

Study finds many black and Latino workers toil in the tech scene's "invisible" workforce of cooks, cleaners and guards

A new report on the diversity of Silicon Valley’s workforce has found a preponderance of black and Latino workers relegated to the bottom rungs of the pay ladder.

Working Partnerships USA released a report on Tuesday that drew attention to an “invisible” legion of contracted workers who cook, clean and guard corporate campuses throughout the Valley.

While black and Latino workers comprise less than 5% of the workforce at prominent companies such as Twitter, Facebook, eBay and Google, their representation balloons to 41% among security guards and 75% among groundskeepers, according to employment data released by the companies and Santa Clara county.

Members of this contracted workforce make an average hourly wage of $11 to $14 an hour, or less than a fifth of the average software developer, the study found.

“These ‘invisible’ workers do not share in the success of the industry which they daily labor to keep running,” the study’s authors wrote. “As contracted workers, their employer of record is not Google or Apple, but a middleman, making them ineligible for most of the benefits and amenities offered on the campuses where they work.”

A growing number of tech companies have voluntarily released employment statistics as part of an effort to address gaps in diversity. “As CEO, I’m not satisfied with the numbers on this page,” Apple CEO Tim Cook wrote in a statement accompanying Apple’s release. ‘We’ve been working hard for quite some time to improve them.”

TIME Apple

Here’s Exactly Why Apple Will Make an iWatch

Apple expands China business, moving beyond big cities
Xiao qiang xg—Xiao qiang xg - Imaginechina

One very qualified observer weighs in

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This post is in partnership with Fortune, which offers the latest business and finance news. Read the article below originally published at Fortune.com.

 

Ironfire Capital‘s Eric Jackson achieved an admirable density of insight Monday in an e-mail exchange with Asymco‘s Horace Dediu.

“The interview is vintage Horace,” writes Jackson. “So much to think about in so few words.”

A few excerpts:

  • On sapphire: “I expect Sapphire will become a signature feature across many products. I don’t know if they will have capacity to deploy on iPhone this year but on a watch it’s essential… It’s a significant material because it allows design freedom in new directions, especially curved (concave) touch surfaces that retain a jewel-like feel. This has Jony Ive [written] all over it.”
  • On prices: “I think Apple holds a black belt in pricing. They seem to define their position in the market by anchoring certain prices and ‘owning’ them… The average selling price (ASP) I expect to remain constant on a year-long average.”
  • On the ‘iWatch’: “I will be shocked to the core if it does not run iOS. It is my opinion that making iOS work on it is the entire reason Apple is sweating this segment. They are in it because they are trying to make a platform product with a novel user experience and all the power of an ecosystem run on a wrist.”

For the rest of the story, please go to Fortune.com.

MONEY Smart Shopping

4 Great Laptops Under $1,000

Whatever your computing needs, there’s an affordable machine that’s right for you.

  • Lenovo Flex 2 15

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    Scott M. Lacey

    Price: $530 | Size: 15.6″ | Battery life: 6 hrs. | Weight: 5.1 lbs.

    The highlights: Real computing power at a rock-bottom price.
    The details: For the typical laptop user, the Lenovo is a serious bargain. The machine comes loaded with Windows 8.1, an Intel processor, quality speakers, and a backlit keyboard—everything you need to work, browse the web, and watch video. You can also pivot the touchscreen backward and use it as a stand-up tablet.
    Best for: All-around use

  • HP Chromebook 14

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    Scott M. Lacey

    Price: $300 |Size: 14″ | Battery life: 9½ hrs. | Weight: 4 lbs.

    The highlights: Boots up instantly, automatically backs up your data, and never gets viruses.
    The details: This laptop runs Google’s Chrome operating system, which consists mostly of a web browser and apps. You’ll need a web connection to get the most out of the HP, but you can edit spreadsheets and other docs when you’re offline. Plus, if the machine crashes, log on to your Google account, and your stuff will be there.
    Best for: Light use

  • Apple Macbook Air

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    Scott M. lacey

    Price: $999 |Size: 13″ | Battery life: 12 hrs. | Weight: 3 lbs.

    The highlights: A lightweight machine with impressive battery life, this Mac is easy to tote around all day long.
    The details: This super-portable laptop combines an efficient processor with a wedgelike body that measures just 0.11 inches at its thinnest point. The machine comes loaded with a variety of Mac apps, such as iPhoto and iMovie, but perhaps its best attribute is the battery. Apple promises up to 12 hours of web surfing.
    Best for: Travel

  • Asus Q502LA

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    Scott M. Lacey

    Price: $800 |Size: 15.6″ | Battery life: 6 hrs. | Weight: 4.9 lbs.

    The highlights: Torn between a laptop and a tablet? The Asus is a bit of both.
    The details: This Windows laptop is powerful enough to use as a work machine. It even includes software that allows you to dictate aloud to the computer when you need a typing break. Yet the Asus is also great for fun stuff. Flip the super-high-resolution touch screen around, fold it flat, and voilà!—a tablet.
    Best for: Watching movies, playing games.

MONEY S&P 500

3 Lessons From S&P 2000

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Getty

It has taken 16 years for the S&P 500 to climb to 2000 from 1000. Here are three takeaways for investors about the journey to the 2000 mark.

Updated: 5:45pm

On Tuesday, the index of 500 of the largest U.S. companies dashed across the 2000 level for the first time—16 years after crossing the 1000 milestone and a week after the Dow regained 17,000.

The market’s march from 1000 to 2000 will be remembered as tumultuous chapter in market history. The first S&P crossed the four-digit mark way back in February 1998, according to data from S&P Dow Jones Indices, before the bursting of the Internet bubble and the financial crisis. Between then and now, in fact, the market tumbled back to below 700 in 2009.

Here are three takeaways for investors about the journey to the 2000 mark.

1. It started in a tech rally, and it ended in a tech rally. But overall, technology has been a pretty average investment.

If you’ve been reading market news lately, you’d be forgiven for thinking the bull market is all about Apple, Google and other hot tech stocks. There’s no doubt these have been big winners: Apple APPLE INC. AAPL -0.6411% , which trades for more than $100 today, traded at a split-adjusted price of just 63 cents in February 1998, more than three years before the launch of the first iPod, according to S&P Dow Jones. But picking the next tech winner is no easy feat. On average, tech companies have delivered a total return of 6.1% a year since 1998. That’s actually slightly below the S&P’s 6.2% total return, suggesting plenty of losers and mediocrities offset a few fabulous winners.

2. The real boom was in energy.

If tech stocks are lagging the field, what’s led it? Energy stocks have been easily the best performing sector of the S&P 500, returning nearly 11% a year, on average, over the past 16 years, says S&P Dow Jones. While oil prices are is notoriously volatile, for the past 16 years they’ve made a steady climb, aside from a brief plunge during the late recession. Around $22 in early 1998, a barrel of oil is more than $90 today. Because if there’s one thing that’s arguably bigger than the Internet revolution, it’s been the the rise of developing nations like China, India and Brazil. Their growing number of factories and middle-class automobile owners have continually ratcheted up demand for energy commodities.

3. For buy-and-hold investors, dividends can be powerful over time.

While the S&P 500’s milestone is certainly worth noting, it’s also a reminder that paying too close attention to stock market swings isn’t the best strategy. While it’s taken 16 years for stock price levels to double, investors who simply bought and held stocks in a low-cost index fund could have gotten there sooner. (Somewhere around early 2013.) That’s because stock-market gauges like the S&P 500 don’t account for dividends. But if you hold a mutual fund that automatically reinvests dividends, your portfolio does. Dividends accounted for about a third of the S&P 500s average annual total return over the time it took for the index to rise from 1000 to 2000, according to S&P Dow Jones.

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Since early 1998, including dividends, the S&P 500 is up 170% as of yesterday (see the chart above), compared to almost 100% for the raw index. We’ll see if the S&P 500 can top 2000 mark today and make that a triple-digit percentage rise.

TIME Business

You Know Things Have Gone Too Far When a Samsung Galaxy Challenges an iPhone to the Ice Bucket Challenge

#Brands being #Brands

Some people are dumping buckets of ice water over their heads to raise awareness for ALS. Others are dumping buckets of ice water over their head to raise awareness for their social media profile. Samsung, for instance, dumped a bucket of ice water over a waterproof Galaxy S5 to bash Apple’s non-waterproof iPhone.

Brands, amiright? Always finding a way to latch onto the latest viral trend…

Chili’s had a more subtle approach to the challenge:

And Ronald McDonald had the most confused, failing to mention donations and nominating all “redheads”:

The Ice Bucket Challenge has raised more than $80 million for ALS research since July 29.

TIME technology

4 Ways Tim Cook Has Changed Apple as CEO

Apple Hosts Its Worldwide Developers Conference
Apple CEO Tim Cook walks off stage after speaking during the Apple Worldwide Developers Conference at the Moscone West center on June 2, 2014 in San Francisco, California. Justin Sullivan—Getty Images

When Steve Jobs stepped down as Apple’s CEO on August 24, 2011, the company’s future was anything but certain. The tech giant had become the most valuable company in the world just weeks before, thanks to a decade’s worth of wildly successful new products like the iPod, iPhone and iPad. The disruptive devices were credited almost exclusively to Jobs’ genius, and consumers as well as Wall Street analysts wondered whether Tim Cook, his soft-spoken successor, could guide Apple even higher.

Fast forward three years and Cook has proved his doubters wrong. This week, he got quite the anniversary gift when Apple’s stock reached an all-time high, largely because of strong recent earnings reports and anticipation of the iPhone 6, rumored to be announced this fall. Apple’s new share price high is a sign investors are buying into Cook’s vision for the companys’ future, which looks different from Jobs’s.

Here’s a look at four ways Apple has changed during the Era of Cook.

Only Cook Could Go to China

Jobs famously never visited China during his tenure as Apple CEO—that was Cook’s job, who served as the company’s chief operating officer before Jobs stepped down. As CEO, Cook has taken a more hands-on approach in the world’s most populous country, visiting China multiple times to meet with government officials and survey Apple’s factories there. Even more important than the trips is the deal Cook inked last year with China Mobile, the world’s largest wireless carrier, to carry the iPhone. His focus on the country has paid off handsomely. China is now Apple’s fastest-growing sales market by far, generating $5.9 billion in revenue in the most recent quarter.

“There is no doubt [Cook] recognizes the fact that China will become Apple’s number one market,” Thomas Husson, an analyst at Forrester, said in an email to TIME.

Goosing Apple’s Stock Through Share Buybacks

Investors have long clamored for Apple to make better use of its massive $160 billion cash hoard. Jobs ignored a suggestion by Warren Buffet to launch a share buyback program, but Cook has launched a massive share repurchase plan to reclaim $90 billion in company stock. Such programs make investors happy by putting cash in their pockets, while also improving a company’s financial optics by boosting its earnings per share. The share repurchase plan, which was expanded earlier this year, has helped Apple stock rally in recent months after tumbling from an all-time high in September 2012. In fact, the company’s 25% gain in stock price since purchasing $18 billion of its shares in the first quarter of the year was the best return ever following a share buyback, according to Bloomberg.

Diversifying Apple’s Core Products

Part of Apple’s financial success stems from the fact that it manufactures a relatively small slate of products that sell on a massive scale. Cook has deviated somewhat from this strategy by introducing variants on the iPad (the iPad Mini) and the iPhone (the iPhone 5c) that serve as smaller cheaper alternatives to Apple’s flagship devices. Apple doesn’t break out the sales of individual products within the iPad and iPhone lines, but according to mobile marketing firm Fiksu, the iPad Mini was the second most-used iPad as of April. More impressive than the sales is the fact that Cook has been able to keep Apple’s margins impressively high while adding new production costs.

“Jobs did a lot of the heavy lifting developing home run products such as the iPad and iPhone,” says Bill Kreher, an equity analyst at Edward Jones. “Cook has been able to extend the reach of those products, improving profitability.”

Increasing Apple’s Acquisitions and Partnerships

Apple made few acquisitions in the Jobs era, and they were generally small. Cook, on the other hand, has bought up 23 companies since taking the reins, according to Crunchbase. No buyout caused more waves than Apple’s $3 billion purchase of Beats Electronics, which was either a smart acqui-hire of Beats’ music and marketing maestros or proof that Apple has lost its creative spark, depending on your perspective. The purchase mainly showed that Cook isn’t afraid to seek help from outside his Cupertino headquarters. For more evidence, consider Apple’s recently announced partnership with former nemesis IBM to bring a suite of enterprise apps to iOS.

Make no mistake—investors are still clamoring for Cook to release a new product disruptive as the iPhone or the iPad. Rumors persist that Apple will eventually launch an iWatch, or perhaps a pay-TV service to compete with cable. For now, though, with iPhone sales climbing ever higher and investors’ pockets being lined through a share buyback, Wall Street seems content with Apple’s trajectory.

“You have Steve Jobs, who was the innovator, the visionary,” says Kreher, “and you have Tim Cook, who is a good steward of the business and is an excellent executor.”

TIME Rumors

Don’t Count the iPhone 6’s September 9 Debut Out Yet

The new iPhone line reportedly had a backlight engineering problem that goofed up the assembly process earlier this summer.

Reuters is reporting that Apple may be having difficulty prepping a sufficient number of screens for the next iPhone. Apple is expected to unveil the new line at media event on September 9. The problem, says Reuters, involves a “key” component that’s disrupting the production of the line’s new screens, rumored to be larger than the iPhone 5’s current four inches, and possibly come in two sizes.

More specifically, Reuters’s supply chain sources say the problem is with the backlight configuration in the new phones. Apple wanted to reduce the material used for the backlight from two layers to one in hopes of thinning the phones, says Reuters. But without that second layer, the phones apparently weren’t bright enough, which forced the parts back to engineering and held up the assembly process earlier this summer. That’s now impacting the number of screens Apple’s been able to produce in the ramp up to the unveiling, according to Reuters’ sources.

How many phones amounts to a sufficient number at launch anyway? I have no idea, nor does Reuters, but the news site defangs the issue somewhat by pointing out that its sources indicated the “hiccup” may or may not make it harder for you to get one of the new phones at launch or delay the phones outright. Thus we’re left to mull the possibility that there could be a launch availability problem, but with absolutely no idea of its magnitude, on a scale that runs from “catastrophic” to “irrelevant.”

Short of actually delaying the debut, which seems unlikely at this point–rumors of a September 9 event bubbled up just a few weeks ago, well after the June/July timeframe referred to in the Reuters piece–it’s unlikely we’ll know whether this story impacted the phones’ arrival. Availability issues have been a major part of every new iPhone launch, and a certain amount of scarcity–so long as Apple’s able to ramp up production to meet or surpass its fiscal projections in the long run–isn’t the worst problem to have. Sony’s PlayStation 4, for instance, which Sony claims was plagued by supply issues from launch, has gone on to sell 10 million units worldwide, a record-breaking figure even Sony can’t explain.

TIME apps

Most of Us Don’t Download Any Smartphone Apps at All

Using a smartphone with Spotify app
Jonathan Nackstrand—AFP/Getty Images

And most people spend a huge chunk of time on just one app

More and more of us might be using smartphones to meet our digital needs but, according to the latest data from analytics firm Comscore, we aren’t downloading more apps on top of what comes with our phones.

Only about 35% of smartphone users download any apps at all in an average month, says Comscore’s Mobile App Report—put another way, 65% of smartphone users don’t download a single app in any given month.

That’s not to say that people aren’t using apps, or even that app downloads are down overall. Smartphone sales have been soaring worldwide, broadening the pool of potential app downloaders even as people individually tend not to be downloading very many apps. Indeed, July was Apple’s best month ever for app store revenue.

It seems to be that people just don’t need that many apps. According to Comscore, “a staggering 42% of all app time spent on smartphones occurs on the individual’s single most used app.” It may also be the case, as Quartz notes, that Apple’s app store—the elephant in the app retail room—relies too heavily on Top 25 lists and makes it difficult for users to find new apps they might want.

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