I/O 2016: Google's new Home hardware takes on Apple's HomeKit and Siri

The smart home battle between Apple, Google and others continues to heat up, with Google on Wednesday announcing Home, a new voice-activated hardware kit that brings the Google assistant service to any room in your house.





Like Amazon Echo, Google Home is an always-listening piece of hardware that allows users to issue commands using natural language. The hardware will launch later this year, though Google has yet to announce a price.

Demonstrated by Google at its annual I/O conference, Home allows users to control connected devices in their home, get answers from Google, stream music, and more.





The hardware itself is a small speaker, with swappable exterior shells that can be chosen to match a home's decor. And because it's always plugged in, Google Home is capable of pumping out room-filling sound for music and voice feedback.

Home is also designed with multi-room support, allowing users to own multiple hardware units and place them throughout their house. And it'll play nice with Chromecast, allowing users to rely on just their voice to queue up content on an HDTV.

Watch: Apple's 2016 MacBook vs. 2015 MacBook in speed test comparison




Apple was able to squeeze out an extra hour of battery life and modest performance gains from its second-generation 12-inch MacBook, but is that enough to warrant an upgrade from the 2015 model? Find out in AppleInsider's head-to-head video.

With the recent update of the 12-inch MacBook, Apple touted not only battery life increases but also improved performance. Packing a new Skylake processor and integrated graphics, along with faster storage and memory, we wanted to check for ourselves how much of a performance boost the 2016 MacBook provides over last year's model.

We started off comparing the SSD speed which was faster and more consistent in the new MacBook. This should result in a faster loading applications and bootup of the Mac, but in real world usage, we didn't notice much of a difference.

Next, we used GeekBench 3 to test processor performance. Both finished the test at about the same time with the latest MacBook being just slightly faster. Our next test is a CPU and GPU rendering test called Cinebench. Once again the 2016 Macbook pulled ahead by just a bit. (show on screen 4 percent CPU and 10 percent GPU). Moving onto the web browsing benchmark Octane, the new MacBook gets a marginal improvement. 




For photographers, we put these MacBooks head to head exporting edited photos with latest version of lightroom. The latest MacBook was about 14 percent faster, which is really negligible unless for some reason your editing thousands of photos on this machine, of the much better suited MacBook Pro. 

Taking it one step further we ran the Final Cut benchmark BruceX, which pushed the machines to their limits in video editing. This is the one area we saw a major improvement in, with an almost 300 percent improvement with the 2016 Skylake Macbook. Even so, unless you really need the ultraportable design, video editors will have a smoother experience on a MacBook Pro, which starts at the same price of $1,299.

If you wanted to buy a 12-inch MacBook but were waiting for some big performance improvements, you'll likely need to wait a few more years, or just settle for one of Apples slightly larger offerings that pack a more powerful punch.

Apple, Samsung, Facebook, Amazon & the case of the 'very bad' Q2

Apple's fiscal Q2 earnings were the company's "worst ever" of the last decade in terms of year-over-year growth, but not in terms of actual commercial activity during the first three months of 2016. Take a closer look at Apple and three other firms: Samsung, Facebook and Amazon.




Apple's "very bad" quarter was its second best Q2 in history


While CNBC lines up pundits expressing their surprise about Apple not beating its record quarterly sales and earnings reported in the year ago quarter, the real surprise should be that Apple didn't perform worse.

After all, over the past quarter—and back into last December, before Apple had even reported its fiscal Q1 results for the end of 2015—reports had been rolling in from Japan's Nikkei, as echoed in the Wall Street Journal, that based on supply chain rumors, Apple was cutting iPhone production by 10 percent in the December quarter, and 30 percent in the March quarter.

Those supply chain rumors didn't materialize in any sales shortfall in the December quarter—iPhone 6s actually sold slightly better than the blockbuster iPhone 6 cycle had at the end of 2014, even despite unfavorable economic conditions including very ugly currency headwinds across most of Apple's international sales regions.

In March, iPhone sales were below the previous year, but not anywhere near the reported 30 percent supply chain cuts. They were, however, well above the previous iPhone 5s cycle, showing that the anomaly in Apple's consistent pattern of global growth wasn't so much this year, but last year.

The reports of my death have been greatly exaggerated


That makes the one data point of decline in Apple's history of iPhone sales a poor representation for an empire in decline.

Recall that when PC shipment growth declined in 2009 for the first time in the decade, it wasn't the sudden end of PC growth. However, PC growth did indeed grind to a halt later, and has consistently tumbled each year since 2011.

The root cause wasn't that PC vendors had run out of customers. Instead, PC sales were hit by two trends: one was iPad and other tablets offering an alternative computing form factor, and the other was iPhone and other smartphones offering a completely different computing model.

In contrast, there does not appear to be any new mobile form factor that is eroding away the success of Apple's iPhone. That's a popular narrative among Apple's most scathing critics, including one particularly nauseating screed by Nick Farrell titled "The Decline of the Apple Cult Comes to Pass," which boldly claimed Apple lost sales in China due to more "functional" phones from HTC and Samsung that also offered more novel design flourishes.

Farrell wrote, "as the Chinese economy retracted, overt shows of wealth gave way to functionality. HTC and Samsung phones had more bells and whistles, and looked much better.

"But Apple's refusal to have a good old redesign go at its iPhone, even returning to the iPhone 5 design this year, was just silly. Is it any wonder that Apple sold only 51.2 million iPhones this year?"

Never mind that Apple didn't "return to iPhone 5" at any time during the quarter. iPhone SE didn't even go on sale until the quarter ended. iPhone SE is also obviously not Apple's new design for the future.


iPhone SE is not iPhone 7


As Harry McCracken, wrote in response for Fast Company, "I'm not even going to ask whether 51.2 million iPhones is a figure which can reasonably be preceded by the word 'only.' Here's another question, though: How can Farrell talk about Chinese consumers opting to buy HTC and Samsung phones instead of iPhones when the latest smartphone market-share stats for China show that Apple, even during a rough quarter, remains in the top five—and HTC and Samsung are nowhere to be found?"

Apple itself provided answers about why it sold "only" 52.2 million iPhones in the March quarter. One of the most significant was exchange rates, particularly related to Hong Kong, which inflated the price of all of Apple's imports into Greater China.

However, sales data from China for the quarter showed an overall slowdown in smartphone sales year-over-year. Xiaomi—one company that's been hyped as a competitive threat to Apple—was also reported to have lost sales volume and share. Unlike PCs, which have clearly taken a prolonged, serious dive as consumers move to mobile devices, smartphones (and iPhone in particular) are not really being eaten up by a new competitor.

That points to an economic downturn, combined with unfavorable currency exchange rates, as exerting a temporary impact on iPhone growth. Unlike PCs, which have clearly taken a prolonged, serious dive as consumers move to mobile devices, smartphones (and iPhone in particular) are not really being eaten up by a new competitor.

Further, unlike its PC peers, Apple has been reporting nearly consistent growth in Macs throughout the years of collapse seen in generic PCs. And at the same time, Apple has also built up iPad as a secondary computing platform, resulting in two very profitable computing businesses (Macs, among the top five PC vendors globally, and iPad, the number one tablet by a wide margin).

That provides a strong basis for supporting the view that Apple's iPhone business will also weather today's temporary setbacks at least as well as its strongest competitors, and be able to grow even as high volume, low end commodity rivals take turns imploding—as generic PC makers have been doing throughout Apple's entire history.

iPhones aren't slowing the same as PCs


While new fears are being invented about the prospect of iPhone 6 users growing satisfied with the phone they have over buying a new iPhone 7, the reality is that iPhones have a relatively short life cycle for two good reasons.

First off, unlike PCs iPhones have evolved rapidly and relentlessly. A PC from four years ago is not that outdated, but a 3 year old iPhone feels pretty long in the tooth. Even more importantly, PCs typically sit on a desk or are handled with care. People walk down the street with their phone in hand.

Just look around any bar and you see shattered screens everywhere. Drops and general day to day wear take a lot more out of our mobile computer-phones than previous generations of the personal computer were ever exposed to.

iPhone upgrades are a stable recurring revenue source. And most importantly, Apple is not just a hardware company but rather a platform company, so it has the power to rapidly enhance users' experiences with new evolutions of software and hardware integration in ways that other commodity phone producers can't on their own. Touch ID, Apple Pay and 3D Touch are easy examples.

Apple's Mac and iPad platforms lie somewhere in the middle. As with iPhone, Apple owns the entire platform and can rapidly introduce new integrated innovations. However, iPad is clearly showing itself to have a longer replacement cycle than iPhone, and Macs can stay useful for even longer.

One other issue uniquely faced by Macs: they're still powered by processors from Intel, which means that Apple's ability to introduce faster, more powerful models is contingent upon an outside partner, much the same way that generic PC makers also rely upon Microsoft, and Android licenses have to coordinate their direction with Google.

Apple vs Samsung: March quarter results


Samsung would like to have its own platform like Apple's iOS, which is why it invested in Bada and then Tizen. The problem is that it could not develop a platform that its customers wanted.

In the March quarter, Samsung saw year-over-year growth in its smartphone sales, but that's because the valuable Galaxy segment of its smartphone business is gradually rebuilding from a crushing defeat at the hands of iPhone 6 last year, rather than being compared to the tremendous upgrade cycle that iPhone 6 achieved, as Apple is.

Suggesting that Apple failed to grow while Samsung achieved growth is therefore among the most facile and willfully ignorant observations one can make about the smartphone market this quarter, even before recognizing that Samsung sold many more phones but earned less than a quarter what Apple did.



But there's also another difference between Apple's performance in the March quarter and Samsung's. One of the primary factors Samsung itself noted in its results was the earlier than usual launch of its Galaxy S7 flagship.

Apple launched iPhone 6s in the previous quarter, and did not begin selling the new iPhone SE until the quarter had ended. Additionally, Apple manufactured more iPhone 6s models in the December quarter this year. Last year, Apple also entered the March quarter with a inventory deficit.

This year, Apple did the opposite, and it had the effect of pulling some growth out of the March quarter and into December. That made the holiday quarter look better. Further, the launch of iPhone SE, as well as the new 7.9 inch flagship iPad Pro, both helped to delay sales into the June quarter.

That appears to have been a strategic decision intentionally made to allow the March quarter to bear most of the year's worst news. Tim Cook is frequently contrasted with Steve Jobs, but the latter made the same call back in 1997, writing off Apple's glut of inventory in one fell swoop, allowing the company to move forward without carrying a lingering problem. When you look at China in particular, Apple's disappointing performance as a premium brand there looks much better when you contrast Samsung's position of not even being in the top five anymore.

That timing also means that throughout the rest of 2016, there will be increased focus on Apple's upcoming iPhone 7, and when it arrives Samsung's own flagship will be further away in the rear view mirror.

Additionally, when you look at China in particular, Apple's disappointing performance as a premium brand there looks much better when you contrast Samsung's position of not even being in the top five anymore.

As well, Samsung's smartphone portfolio is far further downmarket, meaning it is more vulnerable to commoditization, especially so because it runs the generic Android platform just like the other, cheaper Chinese brands.

Apple, Facebook and a new kind of growth: monthly active users


Despite a single quarter of iPhone sales decline, Apple's pool of active users is actually growing. We know this because Apple's iPhone 6s Q2 was as bigger than the iPhone 5s Q2 in 2014, and even a million units higher than the peak holiday launch Q1 sales iPhone 5s achieved.

In other words, while sales of new iPhones didn't increase year over year, growth of Apple's iPhone user base continued, fueled by the strongest influx ever of Android switchers.

Compare Facebook's growth in users. Facebook earns nothing from new users who begin using its platforms (Facebook, Instagram, WhatsApp). It actually spends significant resources acquiring new users and maintaining services and supporting the software they use.

Facebook's revenue comes from showing ads to those users, which helped it collect about $12 per user last year.

Now compare Apple's business: it brought in, on average, around $670 per user buying an iPhone in fiscal 2015 (231 million of them). It also brought in about $420 each on every iPad sold (55 million) and $1200 on each of 20 million Mac sales. But those all all just the buy-in to join Apple's platforms.

The Facebook-like revenue that Apple earned on its user base was another $20 billion, which includes sales of apps, AppleCare, iBooks, iTunes and new Apple Music subscriptions. Apple now has 13 million new subscribers who will each pay about $120 per year for that service.


Apple Music subscribers are worth $120, Facebook users worth $12




So even with fewer users—Facebook claims about 1.65 billion MAUs, compared to Apple's "over 1 billion" active devices or 782 million active iCloud users—Apple just reported quarterly Services revenue of over $6 billion, compared to the $5.38 billion in advertising revenue Facebook brought in.

And while Facebook earned $1.51 billion in the quarter, Apple's Services alone—with a profit margin estimated by Piper Jaffray to be around 60 percent—means that Apple earned about $3.6 billion from its own non-hardware business.

Apple is a much larger company than Facebook, so it shouldn't be surprising that it earned about twice as much servicing its own user base, even if that user base is smaller. However, Facebook's market valuation has now reached $363 billion, nearly 74 percent that of Apple's $492 billion market cap.

That ignores the fact that Facebook gets no "platform admission profits" from its users (that "other" $213 billion Apple earned from hardware sales last year), or that outside of the U.S., its ability to earn revenues off its user base drops off rapidly.While there are fears that Apple might have some issues in China, Facebook is completely blocked out of the second largest market for tech in the world, with no real hope of entry.

And while there are fears that Apple might have some issues in China, Facebook is completely blocked out of the second largest market for tech in the world, with no real hope of entry. China already has its own Facebooks operating there.

Facebook's valuation is anchored in expectations of growth. But is no growth envisioned for Apple's own, already larger and much more profitable Services segment?

Apple just added another 3 million Apple Music subscribers in the March quarter, who will contribute as much new revenue this year as 30 million new active Facebook users sitting in front of ads between their cat videos. Apple Music users are literally worth ten times as much.

Apple is building like Amazon, but earning 20x as much FCF along the way


Another enterprise that can be contrasted with Apple's operations is Amazon, which delighted its investors with unexpected earnings this quarter, vaulting its valuation further into the stratosphere.

But again, those earnings were only notable relative to expectations that Amazon would chug along without any focus on earnings, as its investors are patiently waiting for the company to emerge from its chrysalis and someday emerge as a wildly profitable Mothra.

It was Amazon's most profitable quarter ever, but the company only reported $513 million in earnings. That's about five days worth of Apple's earnings for the quarter.

Analysts were also impressed that Amazon Web Services had grown by $1 billion to achieve quarterly revenues of $2.57 billion. Again, Apple's own Services business grew by $1 billion, but Apple's non-hardware business is tightly tied to its proprietary platform. AWS is essentially a commodity service that customers can rather easily swap out to a cheaper competitor.

In fact, that's reportedly what Apple itself intends to do as it migrates from AWS to its own cloud servers. Apple reportedly pays AWS about $1 billion in revenues annually.


Apple's data center in Maiden, N.C.


Additionally, Apple is said to have already inked a deal with Alphabet worth $400 to $600 million to transfer some AWS tasks to Google Cloud, preparing for a departure from Amazon's services this year.

How impressed can investors be with Amazon's ability to build commodity cloud infrastructure when Google, Microsoft and many others are desperately racing to build out their own commodity cloud infrastructure, driving prices into the basement like PC vendors in the 1990s?

Without any real profitability, Amazon is rampantly investing in a very expensive retail operation where order fulfillment costs are so high that the company is basically performing a volunteer service at the expense of investors.

It's also building a Prime content service, something more directly comparable to Apple's own Services segment, but again with a more detached user base that can freely defect to content subscriptions from Netflix, Google or, in the future, Apple's own.

Amazon's valuation? $308.71 billion, or 62 percent of the current valuation of Apple. Despite revenues of $29.13 billion, compared to Apple's $50.6 billion in quarterly revenue in its "bad Q2."

Clearly, investors don't think Apple has any potential to build any functional business from its increasingly large pile of money, and only envision the firm falling off the precipice into the chasm of doom that pundits have been describing each year since forever.

It will be important for Apple to more clearly articulate going forward that not only does it have a vast hardware business that operates like a wildly profitable version of Samsung (x4), but that it also has a Services business twice as profitable as Facebook, and is building out new cloud infrastructure to feed that enormous audience, rather than speculatively building commodity cloud infrastructure like Amazon.

If Apple can communicate that it isn't just a commodity hardware business like HP or Samsung, it demand a valuation that reflects that its past growth wasn't just a fluke of being in the right place at the right time, and that it didn't just accidentally end up with $10 billion in quarterly free cash flow.

Largest shareholder urges struggling Pandora to sell itself to the highest bidder

Activist investment firm Corvex Management is pushing streaming radio service — and Apple Music competitor — Pandora to seriously consider selling the company, instead of pursuing what it has dubbed a "costly and uncertain business plan."




Corvex is the single largest shareholder in Pandora with a 9.9 percent stake, or about 22.7 million shares, according to Reuters. Corvex is a hedge fund run by Keith Meister, a protege of billionaire activist investor and former Apple shareholder Carl Icahn.

"Despite its many strengths, [Pandora] has been unable to date to translate its great product into a great business with an attractive public market valuation," Corvex wrote.

The investment firm believes Pandora could garner interest at a "substantial premium" to its recent stock price. Pandora had a market capitalization of $2.29 billion on Monday, and Corvex believes potential buyers could include large Internet companies, phone makers, and media conglomerates.

In March, Corvex told Pandora management of plans to replace some of its board members, but withdrew that plan based on Pandora Chairman Jim Feuille's apparent willingness to consider a sale, according to The Wall Street Journal. The company subsequently appointed Tim Westergren, a former musician who spearheaded Pandora's music algorithm technology, as CEO.

Westergren initially indicated opposition to a sale. This surprised and disappointed Corvex, which led to this week's public call for the company to be sold.




Pandora said in response that it "has a profitable core business, combined with a strong balance sheet" and is "confidently investing to fully capture the massive opportunity ahead of us." It touted its constant dialogue with shareholders and commitment to achieving long-term value for them.

Pandora's shares are down more than 25 percent in 2016 and more than 45 percent year-over-year. Unlike other streaming services, which have negotiated deals with record labels to allow listeners to pick songs, Pandora has acted more like a radio station, playing songs that match a genre but not allowing customers to make selections. It is now playing catch-up and negotiating with record labels for the licenses it needs to offer more on-demand music services.

As of last fall, Pandora had 78.1 million active users, though most of those were free, ad-supported accounts. Apple Music, meanwhile, has more than 13 million paid customers, with no free tier outside of three-month trials and Beats 1 radio.

Pandora expanded into a new sector with the purchase of ticketing and digital marketing company TicketFly for about $450 million last year. Corvex cited that acquisition as an example of a "questionable capital allocation" decision in its letter.

Apple to expand Indian development center, announce accelerator program for startups

Coinciding with Apple Chief Executive Tim Cook's first-ever visit to India, the iPhone maker will reportedly make a pair of key announcements for the emerging market, related to software development and local start-up companies.




Citing unnamed sources familiar with Apple's plans, Reuters reported on Tuesday that Apple will announce a startup accelerator in India. The goal is for Apple to work more closely with developers in India on apps for iOS and OS X, increasing the amount of localized content available in the country.

The report also said that Apple plans to expand its $25 million tech center located in Hyderabad, India. The 250,000-square-foot software development facility opened in the country earlier this year.

Cook's visit could also coincide with retail announcements, as recent reports have indicated the Indian government is prepared to waive regulatory hurdles that have previously blocked Apple from opening stores in the country. It's been suggested that Apple's first three Indian stores are on track to open by the end of 2017.

From an earlier encounter between Cook and Modi.



Cook is set to arrive in India on Tuesday, and will meet with Prime Minister Narendra Modi later this week. The trip marks Cook's first time in India as the head of Apple.

iPhone sales in the market surged 56 percent last quarter, but Apple has depended largely on older models to stay competitive. The company has also sought to import used iPhones into the market, but has run into some resistance from the local government in those efforts.

Foxconn, Apple's primary assembly partner, is said to be working on a plant in the town of Maharashtra that will reportedly be dedicated exclusively to Apple products. The $10 billion facility could address some of those issues Apple currently faces as it works to further penetrate the market.

In recent months, Cook has told investors that he sees huge growth potential in India, and emerging market with a population of nearly 1.3 billion people. Cook and Apple previously bet heavily on China, a move that fueled much of the company's growth over the last few years.

Previewing Apple's WWDC 2016: Big news for iOS 10, iPhone 7, new iPad Pro



Rumors of iPhone 7 have so far revolved around purportedly leaked schematics and part images, which only allude to obvious potential hardware changes (a dual lens camera, an iPad Pro-like Smart Connector and replacing the legacy headphone jack with Lightning). However, many of Apple's biggest iPhone leaps have been externally invisible, driven by software advances unlocking the power of advanced silicon hardware inside, many of which debuted at WWDC.



Apple's Swift invite to WWDC 2016


Apple is notoriously secretive about its future plans right up to the point where it is ready to release new hardware at its Apple Event launches, or alternatively, new software and cloud services at its annual Worldwide Developer's Conference in June. Here's what to look forward to at next month's developer event, focusing specifically on iOS 10 and the devices that run it.

WWDC is all about software, as it is the company's annual meeting with app developers, accessory partners and others who interface with Apple's platform APIs. While the company has occasionally debuted new hardware at WWDC, in recent years the event has focused almost entirely on new software releases (iOS, Mac OS, watchOS and iCloud) and ways developers can make the most of Apple's platforms.WWDC has showcased incremental advancements that provide clues about where Apple is headed

Apple's WWDC has showcased incremental advancements that provide clues about where Apple is headed—including strong foreshadowing of future hardware. 

For example, Apple began talking to developers at WWDC about gaming related hardware controllers long before it introduced Apple TV. It also unveiled its Bluetooth-based Continuity services prior to introducing Apple Watch, which tightly integrates with your iPhone using those same technologies first perfected on Macs and iOS devices. Last year's iPad multitasking features in iOS 9 were a harbinger of the two new upscale iPad Pro models aimed at business users. 

Previous iPhone innovations were often invisible to spy shots


Consider first how little we knew about earlier iPhone releases just from spy photos circulated before their launch. Apple's second generation iPhone 3G debuted a cheaper plastic case than the original model, intended to make it affordable to a much larger audience. But inside that shell was a series of major improvements ranging from its application processor chip to its camera and support for 3G mobility and GPS location services. A spy photo would not have revealed any of that.

The next year, iPhone 3GS looked virtually identical, but it added a digital compass, a video camera and doubled its processor speed. That enabled it to run a new class of more powerful and sophisticated apps, without any radical reshaping. Once gain, that model wildly outsold its two predecessors. 

Apple's new design for iPhone 4 notoriously leaked when a prototype was discovered left behind at a bar. But despite having some real Apple hardware in their hands, bloggers at Gizmodo didn't even realize that the device would launch a new high resolution Retina Display, and they didn't know anything about its powerful new A4, the first new ARM chip Apple had developed internally with significant silicon optimizations. 


Jason Chen's prototype iPhone 4


They also didn't know — just from looking at it — that the device would launch the all new FaceTime, or that it would include the first gyroscope in a smartphone. iPhone 4 went on to become the biggest smartphone launch of its time.

The subsequent iPhone 4s built upon these enhancements with even more invisible updates, including those enabling efficient Siri voice recognition (via new mics and sophisticated voice recognition and noise canceling hardware). It also added support for the new iMessages in iOS 5, and a new leap in application processor speed with the A5 chip.

Apple's next external jump, iPhone 5, introduced a taller screen and the new Lightning connector, neither of which were widely seen as must-have features or examples of revolutionary innovation. The biggest improvement, besides its faster A6 chip and greatly enhanced camera, was support for LTE, something that many carriers at the time were just beginning to roll out beyond major cities. It went on to sell more units than ever, and lived on for another year as iPhone 5c.

iPhone 5s similarly looked little different from its predecessor apart from the metallic ring around its Home button alluding to its support for Touch ID. Its biggest leap was the surprise delivery of A7, the world's first 64-bit smartphone chip. That chip also incorporated a very sophisticated imaging engine that helped establish iPhones as excellent mobile cameras, drawing a sharp distinction with cheap Android phones that smeared memories into blurry photographs.

Apple has since launched two iPhone 6 models that actually did significantly change in their outward appearance with larger, higher resolution displays. But the A8 behind the scenes — packing a much faster GPU — did much of the work to make that larger screen possible while still retaining iPhone's lag-free user interface. 

Last year's iPhone 6s models similarly had no physically discernible features, but got a more durable frame, a faster A9 chip and packed significantly better cameras (with software support for Live Photos), along with adding sophisticated support for 3D Touch pressure sensitivity—creating distinctive shortcuts throughout the user interface, on the Home screen and within apps that added support for the new features (and tons of developers quickly scrambled to do just that). 

Despite looking little different from the original iPhone 6, iPhone 6s slightly outperformed its predecessor in its crucial launch quarter, even despite more difficult economic conditions and very unfavorable currency changes, particularly affecting China.


iPhone 6s didn't need a wildly new form factor to maintain the same unit sales surge as its blockbuster predecessor.


This indicates that while iPhone 7 might not look radically different on the outside, it won't be out of line for a new iPhone to deliver a major jump in features and capabilities due to externally invisible hardware advancements and new software that can take advantage of them and expose them to third party developers. 

New at WWDC: iOS 10


While all of the headline features of iPhone 7 aren't expected to drop until September, a new version of iOS regularly debuts at the June WWDC, often paving the way for new features on the upcoming iPhone launch. We won't know for certain everything Apple is working on related to iPhone 7 and iOS 10 for another month, but here's an outline of things the company likely — or definitely — has in its crosshairs.

A few are obvious, such as continuing work on Xcode, the company's development tool for building iOS software, and Swift, Apple's new development language that's taken off and gained enthusiastic adoption despite its fledgeling newness. 

Rumors have also already outlined potential changes to Photos, as well as Apple Music being the recipient of a targeted enhancement, specifically adding 3D Touch support for previews, enhancing content search and better exposing lyrics. 

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