Apple Will Still Include a Lightning to Headphone Jack Adapter With This Year’s iPhones, Says Barclays

Apple will continue to include a Lightning to 3.5mm Headphone Jack Adapter with the trio of new iPhone models rumored to launch later this year, according to Barclays.

"We believe it stays this year but goes away at some point, potentially in the 2018 model," said Barclays analyst Blayne Curtis, and his associates, in a research note distributed today.

Cirrus Logic would remain the primary beneficiary within Apple's supply chain, as it's believed to provide some of the tiny audio-related components inside of the adapter.

Barclays contradicts Japanese blog Mac Otakara, which said Apple will no longer include the adapter in the box with the so-called iPhone 7s, iPhone 7s Plus, and iPhone Edition.

Apple eliminating the 3.5mm headphone jack on the iPhone 7 was a controversial decision, so it's easy to see why it might want to include the adapter in the box for at least another year. But, unlike when the iPhone launched last year, Apple's wireless AirPods and BeatsX earphones are now available.

Apple sells the Lightning to 3.5mm Headphone Jack Adapter for $9 as a standalone accessory, which is cheap by its standards, so customers that still prefer to use wired headphones won't be forced to pay too much extra whether the adapter is removed from the iPhone box this year or later.


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All Three 2017 iPhones Said to Feature True Tone Displays

Apple's widely expected trio of new iPhone models will all feature True Tone displays, according to investment bank Barclays.

True Tone display technology is currently exclusive to the 9.7-inch iPad Pro

Barclays said the tentatively named iPhone 7s, iPhone 7s Plus, and iPhone 8 with an OLED display will each include a "full spectral sensing" ambient light sensor for the purpose of a "True Color" screen. The sensors are expected to be supplied by Austrian semiconductor manufacturer AMS.


An excerpt from the research note obtained by MacRumors:
For the expected iPhone 7S models, as well as the iPhone 8, we think ams's content increases due to the inclusion of its full spectral sensing ambient light sensor, as already seen in the iPad Pro for that device's True Color screen functionality. We estimate this to be a material step-up in content from the $0.60 range to $1.00.
Apple's only existing device with a True Tone display is the 9.7-inch iPad Pro, which uses advanced four-channel ambient light sensors to automatically adapt the color and intensity of the display to match the color temperature of the light in its surrounding environment, whether indoors or outdoors.

If you are standing in a dimly lit room with incandescent light bulbs, for example, the display would appear warmer and yellower. If you are standing outside on a cloudy day, meanwhile, the display would appear cooler and bluer.

In some ways, a True Tone display is similar to Night Shift, a newer feature on the iPhone and Mac that, when enabled, shifts the display to a warmer and yellower temperature. The feature is based on research that shows exposure to blue light during the evening hours can disrupt or delay a person's sleep.

The inclusion of a True Tone display is not a rumor we have heard previously for the 2017 iPhone lineup, expected to be announced in September, but it is certainly a plausible one. Most display rumors to date have focused on the high-end iPhone model switching to an edge-to-edge OLED display.

Last year, a few reports incorrectly said the iPhone 7 would feature a True Tone display, citing a prediction by KGI Securities analyst Ming-Chi Kuo.

The confusion may have stemmed from the fact that Kuo said the iPhone 7 would "copy the panel features of the 9.7-inch iPad Pro." However, Kuo never specifically mentioned True Tone, but rather the adoption of a wide color display based on the DCI-P3 color gamut, a prediction that turned out to be accurate.

Today's research note was compiled by Barclays analysts Andrew Gardiner, Hiral Patel, Joseph Wolf, Blayne Curtis, and Mark Moskowitz.

The second-generation 12.9-inch iPad Pro is also rumored to feature a True Tone display.

Related Roundup: iPhone 8 (2017)
Tags: Barclays, True Tone display

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‘iPhone 8’ Still Expected to Launch in September in Limited Quantities

Apple's widely rumored high-end iPhone with a 5.8-inch edge-to-edge OLED display will launch in September, although the majority of stock may not be available until later in the fourth quarter, according to the latest research from Barclays analysts Blayne Curtis, Christopher Hemmelgarn, Thomas O'Malley, and Jerry Zhang.

"iPhone X" concept by designer Gabor Balogh

The prediction suggests that Apple's tenth-anniversary iPhone, which has been variously dubbed the iPhone 8, iPhone X, iPhone Pro, or iPhone Edition, will still be available in limited quantities in September. However, shipping estimates could slip to several weeks out just minutes after pre-orders begin.


An excerpt from the Barclays research note obtained by MacRumors:
Suppliers generally had good things to say about the upcoming iPhone 8 launch (for our purposes iPhone 7s, iPhone 7s Plus, and iPhone Pro) as new features drive a more complicated manufacturing process and higher ASPs. We now believe that all three devices will feature wireless charging and will all be launched in the normal September timeframe, although the majority of iPhone Pro volumes may not be available until Q4.
Barclays contradicts a recent report that claimed the 5.8-inch iPhone will be announced alongside updated 4.7-inch and 5.5-inch models, or the so-called iPhone 7s and iPhone 7s Plus, but might not go on sale until much later.

By the sounds of it, availability of Apple's first iPhone with an OLED display could be similar to the iPhone 7 Plus in Jet Black, which was virtually nowhere to be found through the holiday shopping season last year. When an Apple Store or reseller happened to get a few Jet Black models in stock, they sold out almost instantly.

The analysts, citing information from Apple's supply chain following a trip to Asia earlier this month, also reiterated their expectations for the 5.8-inch iPhone. Many of its predictions echo those already made by KGI Securities analyst Ming-Chi Kuo, who has a respectable track record at revealing Apple's plans.

Barclays said the phone will feature a 5.8-inch display with 5.15 inches of usable screen, as Kuo said. It expects Touch ID to be embedded in the display, and the remaining space could be for virtual buttons. It believes the device will have wireless charging, but wireless charging accessories will be sold separately.

It said the 5.8-inch iPhone's stacked logic board design will provide more space for a larger battery and other components, as Kuo previously said. Other features Barclays expects include a front-facing 3D sensor module, the same dual camera setup as the iPhone 7 Plus, and a film-based Force Touch solution.

Related Roundup: iPhone 8 (2017)
Tag: Barclays

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Apple Forecasted to Report Record Earnings Next Week, but Will iPhone 8 Keep Driving Growth?

Barclays estimates that Apple will report a record-breaking $76.6 billion in revenue when it announces its earnings results for the first quarter of fiscal 2017 on January 31. Apple reported revenue of $75.9 billion in the year-ago quarter, and offers guidance of $76 billion to $78 billion for this quarter.

Apple-Bonds
UBS estimates Apple will report revenue of $77.8 billion next week, which falls on the higher end of Apple's guidance. UBS analyst Steven Milunovich maintained a "buy" rating for Apple stock with a target price of $127—compared to $120 currently—in a research noted issued to investors today.

Meanwhile, Barclays analyst Mark Moskowitz lowered his price target for Apple's stock from $119 to $117 in a research note issued to investors today.

Moskowitz does not expect "meaningful upside potential" for Apple in 2017. He believes customers increasingly "mixing down" by opting for the iPhone 6s in favor of the iPhone 7 could weigh on Apple, while he is also concerned about China and India failing to emerge as growth catalysts in the next 12 months.

He said the so-called "iPhone 8" will potentially have "no must-have advanced features," making him skeptical of a meaningful growth rebound for Apple in the second half of this year. He added that smartphones have become "more than good enough" to serve the needs of most users over multiple years or until the device breaks.
While not likely to have a similar replacement cycle of PCs (i.e., 5-7 years), we think the smartphone market and thereby the iPhone franchise stand to face incremental headwinds this year and next, as the smartphone useful life extends to 3 to 4 years from 2 to 3 years previously. As a result, the prospect of revolutionary technology incorporated into the next iPhone (iPhone 8) is not likely to counter the expanding useful life of smartphones in general.
Specifically, he said OLED display options, bezel or bezel-less designs, an embedded Home button, and wireless charging are commonly mentioned in its discussions with industry participants about the next iPhone, but that the new features might not be able to reassert that "must have" element for customers.

Wireless charging in particular may be limited by the need to be close to a charging base. Moskowitz does not expect wireless charging over greater distances to develop until 2018-2019 at the earliest. He acknowledges that Apple could be making strides in this space by partnering with firms like Energous, but he maintains his view.

Nevertheless, he said Apple has a "sticky ecosystem" and a large cash balance that provide decent support for long-term investors.

Barclays predicted Apple has long-term growth opportunities related to India, its growing services category, the enterprise market, artificial intelligence, and possibly the cloud, but it does not expect those potential "what's next?" opportunities to emerge as "major needle movers" for the company over the next 12 months.


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