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iPhone sales slump, but Apple’s in it ‘for the long term’

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Tim Cook with money bag
Tim Cook
Illustration: Cult of Mac

Apple unveiled its earnings for Q1 2019 this afternoon and as expected, total revenue came in a lot lower than Apple originally predicted at the end of last year, with iPhone sales dropping 15%.

Thanks mostly to slumping sales in Greater China, Apple posted $84.3 billion in revenue, marking a drop from the $88.3 billion the company pulled in during the same quarter a year ago. Even though iPhone sales are struggling, Apple’s services are bringing in more money than expected, giving investors some good news.

Live blog: Witness Apple’s high-stakes earnings call

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Apple is worth more than the entire US energy sector combined
This earnings repot could be Apple's worst in years.
Photo: Cult of Mac

Investors are eagerly waiting to see all the numbers from Apple’s 2018 holiday quarter during today’s earnings call. Based on early reports, some of the numbers might come in even lower than expected.

Gulp.

Apple already warned investors that iPhones sales during Q1 2019 came in lower than expected, mostly thanks to problems in Greater China. Even after lowering revenue guidance, the company still could pull out a few surprises. However, most analysts remain worried that the iPhone sales slump will continue into 2020.

Apple CEO Tim Cook and CFO Luca Maestri are set to get on the phone with investors at 2 p.m. Pacific today. Per usual, Cult of Mac will be here live-blogging all the action with up-to-the-minute analysis on all the important numbers.

Come join the fun:

Canon admits defeat in its battle with smartphone snappers

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Canon cameras
The iPhone has been the top choice among Flickr photographers beginning in 2015.
Photo: Flickr

The boss of one of the biggest names in the camera industry says his company cannot compete against the cameras in the iPhone and other smartphones.

Canon CEO Fujio Mitarai says the camera market will shrink by almost 50 percent within the next two years.

To survive, Mitarai says Canon, which produced pioneering autofocus gear popular with professional photographers, will shift its focus to corporate customers in fields like surveillance and medical care.

What you need to know about playing Fortnite for iOS with a controller

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Fortnite mobile controller
You can now play at 120Hz on iPad Pro.
Photo: Killian Bell/Cult of Mac

Fortnite for iOS finally supports wireless game controllers. After installing the latest version 7.30 release, you can connect a compatible MFi controller and bid goodbye to fiddly touch controls.

But don’t expect exactly the same experience as on consoles, and don’t assume you’re going to have an advantage over other mobile players.

Here’s what you need to know about playing Fortnite for iOS with a controller.

UBS thinks disappointing iPhone sales will continue into 2020

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Apple display maker exec fired for embezzling millions of dollars
What will it take to turn around iPhone sales?
Photo: Kristal Chan/Cult of Mac

UBS analyst Timothy Arcuri is concerned that declining iPhone sales are going to continue not only through 2019, but also into 2020.

“We believe the challenges in China would likely to continue and while a trade settlement could help, the damage in terms of iPhone is likely done,” writes in a note to clients. Arcuri thinks that Apple likely sold around 64 million iPhones over the holiday season. While that’s still a big number, it’s less than the 68 million Wall Street consensus.

Sketchy render promises first look at 2019’s ‘iPhone XI’

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iPhone XI render
Really?
Photo: CompareRaja

A new and questionable render promises to provide iPhone fans with their very first look at Apple’s next-generation flagship.

Dubbed “iPhone XI,” the iPhone XS successor has a redesigned camera system and comes in new color options. It is also claimed to offer a bigger battery, USB-C connectivity, and more.

iPhones sales in China dropped 13% in 2018

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iPhone sales are finally rebounding in China
iPhone sales were starting to pickup in China.
Photo: Tim Cook/Weibo

Investors just received a worrying report about iPhone sales in China ahead of Apple’s pivotal 2018 holiday earnings report slated for Tuesday, January 29.

Apple warned investors earlier this year that iPhone sales in Greater China came in lower than expected. We’ll have to wait for the official numbers from Apple tomorrow, but according to data firm Canalys, total smartphone sales dropped 15% year-over-year in Q4 2018 with Apple taking one of the biggest hits.

Google shames iPhone’s low-light performance in new Pixel 3 ad

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Pixel 3 Night Sight
The Pixel 3 destroys iPhone in low-light performance.
Photo: Google

Google is shaming the iPhone’s low-light performance once again in new marketing material for its Pixel 3 lineup.

One company VP shared comparison photos on Twitter that highlight (no pun intended) the Pixel 3’s incredible ability to capture dark scenes. The results simply aren’t possible on an iPhone — or any other handset on sale today.

Vizio kicks off AirPlay 2 beta test in U.S. and Canada

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AirPlay 2
Sign up for SmartCast 3.0 access today.
Photo: Apple

Vizio will soon add AirPlay 2 support to some of its most recent TV sets, and you can try it out early by signing up for the new beta test in the United States and Canada.

AirPlay 2 support will let you stream content from your iPhone, iPad, or Mac — including 4K movies you’ve purchased on iTunes. It will also allow you to control your set from an iOS device.

Sharp wants a piece of iPhone OLED manufacturing

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The iPhone XS Max screen delivers more of that OLED awesomeness.
Foxconn-owned manufacturer is looking to get in on building high quality displays for Apple.
Photo: Ste Smith/Cult of Mac

Japanese electronics firm Sharp, owned by Apple supplier Foxconn, is supposedly working to enter the supply chain for future iPhones boasting OLED displays.

The news comes shortly after a report claiming that Apple plans to include all OLED displays in its 2020 iPhone lineup. Currently it includes a mix of LCD and OLED models. As a result of the increased focus on OLED displays, a number of companies are supposedly gearing up their OLED panel production capability.

Another iPhone supplier considering India manufacturing

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Foxconn moving additional iPhone production to India as coronavirus disrupts work
Another iPhone manufacturer is looking at moving beyond China.
Photo: Ste Smith/Cult of Mac

According to the Financial Times, Apple manufacturer Pegatron is planning to build new production lines in India, Vietnam and India. Pegatron accounts for around 30 percent of Apple’s assembly orders.

It follows on from news suggesting that fellow Apple supplier Foxconn is also considering production in India and Vietnam.

iPhone is tech reporter’s first line of defense against data vampires

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iPhone data privacy
Data privacy comes with the price.
Photo: Leander Kahney/Cult of Mac

The New York Times investigative reporter Nick Confessore has covered data privacy long enough to make the iPhone his smartphone of choice.

His take on data-hungry Android phones is damning enough to make anybody switch to an iPhone. He also offers other tips for keeping your data as safe as possible these days. Unfortunately, that’s not very safe at all, according to Confessore.

Apple celebrates Chinese New Year with special short shot on iPhone

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The Bucket Shot on iPhone
"The Bucket" was shot entirely on iPhone.
Photo: Apple

Apple has shared a special video to celebrate the Chinese New Year.

The heartfelt short film, directed by Jia Zhangke, is titled “The Bucket,” and it’s about remembering loved ones when away from home. Apple has also published another two videos in which Zhangke showcases Depth Control and Slo-mo on the iPhone XS.

Apple wants tax incentives to boost iPhone assembly in India

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iPhone assembled in India
Coming soon with a 2?
Photo: Indian Express

Apple is hoping to secure new tax incentives in India that will allow it to increase local iPhone production and export more devices to be sold in other countries.

The company has teamed up with other large names in the Indian Cellular and Electronics Association (ICEA) to propose a raise in export credits on smartphone shipments, as well as tariff cuts on imports of components and machinery.

The group argues that manufacturing growth cannot be sustained and accelerated without the changes.

Apple decides it will cough up for ‘Shot on iPhone’ photos

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Shot on iPhone photo
Winners will receive 'licensing fees.'
Photo: Brendan Ò Sé

Apple has decided that it will pay winners of its “Shot on iPhone Challenge” following backlash from artists and creators.

The company plans to use 10 images, which will be showcased on its Instagram channel, on billboards around the world, and in other areas, as part of its newest marketing campaign. Apple originally stated there would be no payment, but it has since changed its mind.

Xiaomi just convinced me I need a foldable phone

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Xiaomi foldable phone
We're not exactly clamoring for one.
Photo: Lin Bin/Xioami

“What’s the point of a foldable phone?” That’s the question the Cult of Mac team was asking when Samsung confirmed its first is coming this year. But after seeing Xiaomi’s impressive foldable phone prototype, I really, really want one.

Check out the teaser video below and try telling me it doesn’t look awesome.

Apple sees advantages for iPhone as climate change worsens

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iPhone XS Max vs. iPhone XS size: Sometimes bigger really is better.
Natural disasters will make iPhone even more vital, Apple says.
Photo: Ste Smith/Cult of Mac

iPhone sales might be struggling right now, but they could see a surprising boost from … climate change?

Apple believes that the negative impacts of climate change, particularly the increase in natural disasters, will make its smartphone even more vital. It points out a number of reasons where the iPhone can help “in the arena of personal safety.”

5-in-1 cable gives you one dongle to rule them all

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High Five
High Five packs all the ports you need.
Photo: Vonmählen

The dark days of dongle hell might finally be over thanks to a brilliant new accessory that packs five different ports in one cable.

Vonmählen, a smartphone accessory maker based in Germany, revealed its new creation called the High Five. The company claims it’s the first ever 5-in-1 cable that’s so small it fits on your keychain. Best of all, it’s super cheap too.

iOS 12.1.3 brings fresh fixes for iMessage, CarPlay and iPad Pro

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iOS 12 false update popup
Grab the new iOS update now!
Photo: Killian Bell/Cult of Mac

The first iOS update of the year is finally ready for the masses.

Apple is releasing iOS 12.1.3 today, bringing a number of bug fixes and performance improvements to the iPhone and iPad. iOS 12.1.3 is a minor update and doesn’t contain any big UI changes or new features, but it resolves some important issues with CarPlay, iMessage, Photos and the iPad Pro.

Foxconn gets more serious about assembling iPhones in India

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Foxconn moving additional iPhone production to India as coronavirus disrupts work
Designed in California, built in India?
Photo: Ste Smith/Cult of Mac

Apple supplier Foxconn is reportedly showing more interest in manufacturing iPhones in India, a new report claims.

The move would reduce Apple’s reliance on China at a time in which turbulence in the Chinese market, both from customers and potentially trade tariffs, is causing headaches in Cupertino.

Apple plans complete switch to OLED iPhone displays in 2020

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iphone XS
Every iPhone display will look this good one day.
Photo: Apple

Apple plans to use OLED displays in all iPhone versions from 2020, according to a new report.

The flagship iPhone XS and iPhone XS Max already use OLED technology, but the more affordable iPhone XR employs an LCD panel just like its predecessors. A complete switch to OLED will allow for “more flexible handset design,” sources say.

Apple hits back at complaints it is abusing its power in Korea

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South Korea3
A view from inside Apple's first South Korea retail store.
Photo: Apple

Apple has hit back at claims that it is abusing its power in South Korea by forcing mobile carriers to pay the cost of advertising its devices.

The company said that its actions were fully justified, and that selling the iPhone in South Korea wasn’t just advantaging Apple, but also to local mobile carriers.

How to erase the background in your photos

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This needs some fine-tuning, but took just seconds to do.
This needs some fine-tuning, but took just seconds to do.
Photo: Cult of Mac

There are a bunch of reasons to remove the background from a photo. You might just hate the background — a perfect portrait ruined by crowds, or ugly construction work, or both. You may want to remove the background in order to extract the subject — maybe you’re doing some kind of Photoshop trick, or making a greetings card.

Whatever your reasons, it’s easy to do. Removing the background from an image used to be a nightmare. Now, you just need the right app. And if you’re a regular with our Cult of Mac photo how-tos, you probably have that app already.