Apple Support: Purple Flaring Is “Normal Behavior” For iPhone 5 Camera

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Earlier, we reported that Apple’s iPhone 5 seemed to have some issues with purple flaring when taking photos with a light source just in or off frame, as reported by a number of users and duplicated in tests. Today, Gizmodo reader Matt Van Gastel received a response from Apple’s engineering team routed through a support representative which essentially says that behavior isn’t cause for concern. According to the email from Apple:

[W]e recommend that you angle the camera away from the bright light source when taking pictures. The purple flare in the image provided is considered normal behavior for iPhone 5′s camera.

Of course, long-time Apple watchers will recognize this approach to dealing with what seem to be hardware problems with iPhones, since it’s very similar to what the company initially said about the iPhone 4′s reception issues, which was basically ‘you’re holding it wrong.‘ But in this case, there’s reason to believe Apple might actually be correct. TechCrunch reader and photographer Adam Panzica explains in a note posted to our original story:

As many others have stated, this kind of thing happens very frequently in cameras of all types. I actually remember there being a firmware update to my Canon 7D to address this issues with certain less and lighting combinations. It’s a result of certain light frequencies being reflected/refracted in the lens from the off-angle light source. It might look like lens flare on a larger glass, but on something this thin it’s probably always going to look like a purple haze. You simply cannot beat the laws of physics. High end DSLRs have whole image processors a hell of a lot more advanced than the one in a cellphone dedicated to removing this kind of thing. But it still shows up from time to time, especially with new glass.

The bad news, as Adam points out, is that it’s largely unavoidable, at least in terms of getting rid of it completely. The good news is that as mentioned, it’s the type of effect that’s been addressed or improved elsewhere via firmware update, so Apple could potentially develop a way to compensate for it occurring in iPhone 5 in later versions of iOS, and it might even go away with time.

In the meantime, this is more of a nuisance bug than a game-ender; I’ve yet to have it happen to my photos in the general course of taking pictures, other than when I was trying to make it happen. The response from Apple’s customer support team may not be particularly comforting to those who are seeing this problem with any frequency, but I wouldn’t be surprised if it’s the last word from Apple on the matter of the purple haze.


IHS: iPhone 5 Costs Between $207 and $238 To Make, Depending On Storage

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Research firm IHS has followed up its virtual teardown of the iPhone 5 with a brand new physical teardown, confirming its materials list and also the cost of manufacture for the latest Apple smartphone. The physical teardown reveals that the new iPhone costs between $207 and $238, including all suppliers and cost of assembly, depending on whether you look at the 16GB, 32GB or 64GB model.

That means that margins for Apple are between $442 and $611, not counting expenditures related to shipping, marketing, retail and other overhead. Apple’s margins are actually improved on high-end devices according to IHS, while lower-end iPhone 5s actually cost a little bit more to make than their predecessors did at launch.

The relatively unchanged margins are impressive, given that according to the teardown, the new iPhones have double the RAM, more expensive, larger in-cell displays, an improved processor and beefed up cameras and cellular wireless chips. To compensate for those increased costs, however, Apple has managed to get lower pricing on batteries and Wi-Fi radio, and NAND flash storage prices, traditionally one of the most expensive components, has actually halved.

Sandisk is the iPhone 5′s key vendor for flash memory, according to IHS, which marks a first, since IHS has found Samsung memory in past devices. Sony providing the battery and camera modules, Samsung delivering the processor and Qualcomm providing the wireless baseband processor.

Apple leads the smartphone industry in profit margins, which has helped it take up to 77% of total profit among smartphone vendors according to some recent estimates. That’s unlikely to change much with the iPhone 5 and the latest generation of devices coming from Samsung and others, if IHS’s teardown is an accurate estimate of what Apple’s making on the sale of each iPhone 5.


Apple’s Thinner Display On iPhone 5 Likely Causing Supply Constraints

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One of the reasons Apple’s supply of iPhone 5 devices couldn’t meet the opening weekend demand may be due to its decision to use thinner touchscreens vs. previous generations, which combine touch sensor and glass together in one. The tech in question is coming from just two suppliers at the moment, LG Display and Japan Display, and according to some, that’s leading to a shortfall in production numbers.

Barclays analyst Ben Reitzes said in a research note (via Bloomberg) on Monday that the supply issue could be helped by adding Sharp to the list of suppliers for the in-cell displays, but that the Japanese LCD supplier is having trouble getting production quality to where it should be in terms of reducing defects in new screens. Sharp was unable to begin shipping the screens ahead of the iPhone 5′s debut, Barclays claims.

IHS senior analyst Tom Dinges also told Bloomberg that supply constraints were a likely source of problems for Apple during opening weekend, but noted that that’s a very good problem to have. And Barclays anticipates that it will get better, with estimates of iPhone sales around 45.2 million for the December quarter, and 170.7 million for the iPhone 5′s first year on the market.

There’s also reason to believe that supply constraints could actually be a boon to Apple’s long-term financial performance. Analyst Rob Chira noted before the iPhone 5′s release this month that Apple’s stock has actually performed 2.2 times better in a quarter after official word of supply constraint has come from the company itself. That’s exactly what Apple did on Monday in its press release, with CEO Tim Cook providing a statement saying the company is working hard to meet demand but faces challenges in doing so. Chira saw the in-cell displays, as well as Qualcomm’s 28-nanometer baseband chip as potential weak areas in terms of supply volume, and Qualcomm has said that supplies of that part could be limited as it introduces new manufacturing processes.

So far, Apple’s stock is down, sitting at around $687 in aftermarket trading this morning ahead of the bell. But it could rebound easily once analysts get over the fact that opening weekend sales didn’t meet a lot of analyst expectations, and imagine what kind of numbers Apple can put up once it gets past initial supply constraint issues. We’ve reached out to Apple for more on what’s keeping initial supply of devices under demand, and will update if we hear back.

Update: Apple got back to us and said they had “nothing to add” to yesterday’s official press release when it comes to iPhone 5 supply constraints.


Pocket: 60% iOS 6 Adoption, 20% Of Daily Users Already On iPhone 5

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The developers of Pocket have shared some interesting stats around Apple’s latest product releases with us. The web content clipping service is already seeing 20 percent of its daily app traffic coming from the just-released iPhone 5, and 60 percent coming in from devices with iOS 6 installed. That may sound like a lot, but after Apple announced 100 million iOS devices already updated to iOS 6, and over 5 million iPhone 5s already in the hands of consumers, it’s not so much of a stretch.

We’ve also seen other data from developers, ad networks, and analytics firms that indicates iOS 6 adoption is high, but the iPhone 5 numbers are also huge. It suggests that developers should have an iPhone 5-ready version of their apps out to the public as soon as possible (as Pocket does), because those users are clearly interested in finding and using software for their newest gadgets.

Here’s what Pocket shared on its blog:

Less than a week after Apple’s introduction of its new iOS 6 and iPhone 5, we’re already seeing rapid adoption of the new software—as well as evidence of just how briskly the new device is selling.

The above chart shows the proportion of daily active Pocket users on each of the Apple iOS versions. By the end of this weekend, 63% of our iOS users were already on iOS 6.

Pocket users are also snapping up the iPhone 5—not a surprise given the latest sales numbers. Over the weekend, 20% of Pocket’s daily iPhone users were accessing Pocket from an iPhone 5. Of course, some of that popularity can be attributed to promotion of Pocket alongside the new device, but we’ll continue to keep a close watch on its popularity.


iPhone 5 Sells Over 5M In Opening Weekend, Limited Only By Device Supply

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Apple broke records again opening weekend, with the iPhone 5 selling more than 5M in its first three days, compared to 4M for the iPhone 4S.

The iPhone-maker also announced that demand for the iPhone 5 far exceeded the initial supply, which is likely the only reason why opening weekend sales didn’t cross into the 6- to 10 million range some were predicting. Still the number is impressive, and reflects strong pre-order performance, which Apple said topped 2 million in the first 24 hours.

Apple also announced that 100 million iOS devices have been updated to iOS 6, an amazing rate of adoption, considering that the company has sold just north of 400 million, according to its own numbers released earlier this month. We saw a lot of evidence that adoption was very high, very early on after the release of iOS 6, but Apple’s official totals really drive home just how many eagerly pushed that update button in the first week.


Analyst Estimates On iPhone 5 Launch Weekend Sales Range From 3M-10M

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Analysts have begun making their predictions about the iPhone 5′s odds of success for launch weekend sales, and in fact there’s quite a range when it comes to how the experts see things shaking out. After Apple unveiled iPhone 5 pre-order totals of 2 million over 24 hours, double the 1 million the iPhone 4S managed, it would seem like multiplying out the 4S launch weekend total of 4 million total sales is a safe bet. But that’s not necessarily the tack all industry analysts are taking.

Shaw Wu of Sterne Agee, for instance, shared that his firm is estimating around between 3 and 3.5 million sales of the iPhone 5 during the launch weekend, but that’s just an extrapolated number Wu tells me, coming out of its quarterly projections for the device, and meant only to loosely represent the first few days as it relates to the rest of the three-month period. Overall, Wu said in an investor note today that estimates for the September quarter are up to 27 million, raised from 26 million projected before Apple revealed the strength of its pre-order success. The initial response also hasn’t significantly affected longer-term outlooks, with Agee adding only 500,000 (to make 46.5 million total) to its earlier prediction, owing to continued reports of supply constraints on the iPhone 5′s newly redesigned touchscreens.

Peter Misek of Jeffries thinks that Apple will indeed double its past performance, hitting around 8 million total units sold by the end of launch weekend, with pre-orders included. Misek thinks that a prevailing view on Wall Street that suggests supply constraints will keep the number at or below 6 million are overblown. Long-term, he told CNBC that he believes key drivers for Apple could be securing deals with Japan’s NTT DoCoMo, the last remaining major carrier in that country that doesn’t offer the iPhone, but lately there’s been talk that the iPhone 5 could in fact be a major pain point for DoCoMo, since no announcement has yet been forthcoming about bringing it to that carrier’s considerable LTE network.

Gene Munster, longtime champion of the standalone Apple TV and Piper Jaffray analyst, suggested Monday that Apple will deliver between 6 and 10 million iPhone 5 sales during launch weekend, likely hitting the 8 million sweet spot. That’s due in part to the 100 percent year-over-year increase in pre-order sales, but also based on the knowledge that pre-orders formed 25 percent of last year’s opening weekend sales, hence arriving at 8 million from 2 million pre-orders.

There are new variables at play this time, like an expanded pool of launch countries that includes Hong Kong, always a popular destination for grey market resellers. Even factoring in new countries, Asymco’s Horace Dediu predicted last week that we’d see around 6 million in initial sales, based on an increase in units sold per day in line with previous launches.

Unlike the 4S, this is also a complete visual redesign, and new aesthetics are bound to make a splash with the general buying public, aside from any consideration of features or specs, so that’s a variable that it’s hard to put exact numbers behind. Whatever happens, the bottom line is that iPhone 5 launch weekend sales likely won’t disappoint.


SquareTrade: Americans Have Spent Nearly $6B On iPhone Repair And Replacement Since 2007

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SquareTrade, a company that provides warranty repairs for consumer electronics, revealed in a report today that Americans have spent an approximate cumulative total of $5.9 billion on damaged iPhones since the device’s introduction in 2007. That includes the cost of repairs, replacement iPhones, and insurance deductibles for plans like the warranties SquareTrade offers, and in large part, costs incurred are a result of accidental damage, more so than loss or theft.

The survey claims that just during the past year, more than 30 percent of iPhone owners have damaged their device, and repeat occurrences are fairly common: 17 percent have damaged their devices more than once. Younger iPhone owners tend to be the most accident-prone, according to the results, with one in two iPhone users 35 or under experiencing some kind of accident with their devices.

The major culprits when it comes to what events cause problems? Mostly drops from a decent height, via either just losing grip on the phone (30%), having it fall from someone’s lap (13%), or it getting knocked off a table (11%). Water damage is also a notable iPhone killer, via either complete immersion (18%) or having something spilled on it (9%).

SquareTrade put together the report using a survey of more than 2,000 iPhone owners, as well as market size data from comScore current as of May 2012. The company has access to a huge pool of damage data around consumer devices because of its trade as a warranty provider, but it’s also worth noting that that line of business means SquareTrade could be a bit biased in this matter. I’ll also point out that there’s no comparative data as to how the iPhone’s repair costs stack up against other devices, but it is an interesting snapshot of just how immensely popular the iPhone has been, and how even its service market alone represents a massive, multi-billion dollar industry.

Apple’s next iPhone makes its way to consumers and store shelves on Friday, and actually looks to be a little less susceptible to accidental damage than its predecessors, with a primarily aluminum back that should better handle drops without taking significant damage. It’ll be interesting to see if that has a significant effect on iPhone repair and service frequency and overall cost.


Apple Announces Record Pre-Orders For iPhone 5: 2M in 24 Hours, 2X iPhone 4S Day One Sales

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Apple today announced that it managed to rack up 2 million pre-orders for the iPhone 5 in 24 hours, two times as many as it managed for the iPhone 4S last year, which sold over 1 million devices during its first 24 hours of pre-order sales. That’s a new record, which shouldn’t surprise anyone who’s been watching the progress of iPhone pre-order sales since the device originally hit the market.

The iPhone 4S eventually went on to sell more than 4 million devices over the course of its first weekend actually on store shelves, so expect the iPhone 5 to blow past that milestone, too. The iPhone 5 is initially available in the U.S., Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the U.K., adding two new countries (Hong Kong and Singapore) to the list of launch regions for the iPhone 4s, so expect that to influence early sales as well, especially since Hong Kong is a popular destination for those looking to resell the iPhone at a premium on the grey market in China.

Apple’s pre-order sales actually went relatively smoothly this time around, with few hiccups in site performance and availability when they went live early Friday morning, by most accounts. The initial crop of iPhone 5s (those shipping immediately in time for the September 21 release date) also sold out much, much faster than previous models, up to 20 times faster than the iPhone 4S. AT&T also saw record pre-order sales, it announced this morning, though specific numbers haven’t yet been released.


Apple’s iPhone 5 will arrive with a free Lightning to 30-pin adapter (update: Apple officially says no it won’t)

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If you were miffed at having to pay $29 to adapt your existing iPhone accessories to the iPhone 5‘s newfangled Lightning connector, fear not: Apple will throw in the first adapter, gratis. Extras will still run the aforementioned sum, which Cupertino has justified by saying the units will include chips to enable features like analog and USB audio along with syncing and charging. There’s also a $39 cable version available, but neither format will let you output HDMI or VGA video — there’s more (as yet unpriced) adapters coming for that.

Update: Well, the plot thickens. We’re now hearing reports that the above wording is a mistake, and that the adapter isn’t included after all. The information comes via a reader of The Next Web, who advises Apple sales support informed them it was an error. Of course, we’re reaching out to get the final word on the matter. However, that won’t be much consolation to those who made a purchase based on incorrect info.

Update 2: The above wording is now nowhere to be found on Apple’s site, suggesting that it was indeed an error. We’ll keep you posted if we hear anything more.

Update 3: Well, we’ve just received word from Apple confirming that the iPhone 5 will not ship with a 30-pin to Lightning adapter, which is a bit of a bummer. But, it does come with a Lightning to USB adapter, so if your current accessories have a USB port, all hope is not lost. Sadly, the specific iPod out functionality found in BMWs and Minis is not supported. The full comment is below.

The Lightning to 30-pin adapter does not come in the box with iPhone 5. It is sold separately. However, the Lightning to USB cable does come with iPhone 5 for connection to AC chargers and other devices… The Lightning to 30 Pin adapter supports analog audio output, USB audio, as well as syncing and charging. Lightning to VGA and Lightning to HDMI cables will be available in the coming months.

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Apple’s iPhone 5 will arrive with a free Lightning to 30-pin adapter (update: Apple officially says no it won’t) originally appeared on Engadget on Fri, 14 Sep 2012 16:11:00 EDT. Please see our terms for use of feeds.

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iPhone 5 Unlocked U.S. Pricing: $649 (16GB), $749 (32GB), And $849 (64GB)

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Apple’s website now shows the unlocked pricing for the iPhone 5 in the U.S. Using the site’s compare tool, you can see that the 16GB model starts at $649, with the 32GB version costing $749, and the 64GB top-tier configuration running $849.

That’s the same that the iPhone 4S used to cost unlocked, and it’s a considerable additional expense above and beyond the on-contract price, but you get a couple of advantages.

First, you’re not locked into a lengthy carrier contract, which is useful if you suddenly have to move. You can also then use the iPhone on T-Mobile, which is in the process of deploying a network on the 1,900 MHz spectrum that will finally let the iPhone achieve top mobile broadband speeds on the U.S.’s fourth-largest carrier.

Choosing which unlocked device to buy will be important, however, as there are three variations that provide overseas LTE support, support for U.S. and Canada LTE networks on the 700 MHz frequency, and support for Sprint and Verizon LTE networks respectively.

Pre-orders for the iPhone 5 start at 12:01 AM PT Friday, so get your motors running.

Update: Apple has since scrubbed any mention of unlocked iPhone pricing from its site. Here’s screenshot we got before it was taken down, which seems to have only happened after the ordering system went live.