Famed Apple leaker Sonny Dickson has shared an early prototype of the original iPhone, with a collection of images and a video that provides a glimpse into one version of the iPhone that Apple created and tested before ending up with the first iteration of the device. Mac Rumors reports: The prototype includes some similar features to the first generation iPhone, like an aluminum chassis, multi-touch compatible screen, 2G connectivity and Wi-Fi, but its entire user interface is taken directly from the click wheel system of Apple's original iPod line. Called "Acorn OS," the prototype software includes an on-screen click wheel on the bottom half of the screen and a menu system on the top half, and the two are bisected by a bar with rewind, menu, play/pause, and fast-forward buttons. On the menu are options such as "Favorites," "SMS," "Music," "Settings," and "Recents," and it's navigated by circling around the click wheel to go up and down, with a center press confirming an action, just like on the iPod. Dickson references Apple's patent for a "multi-functional hand-held device," filed and published in 2006, as proof that such a prototype did exist at one point and could potentially have been an alternate version of the iPhone. In one of the patent's drawings, a click wheel can be seen as a possible input method for the proposed device. The patent's abstract describes a product with "at most only a few physical buttons, keys, or switches so that its display size can be substantially increased."

Apple cut CEO Tim Cook's 2016 pay after the iPhone maker missed its revenue and profit goals for the year. From a report on CNBC: Although Cook's annual salary went up by $1 million, he received $8.75 million in total compensation for the year, according to an SEC filing posted on Friday, down from the $10.28 million he received in 2015. Company executives received about 89.5 percent of their targeted annual incentives. The company said its annual sales were down nearly 4 percent, or $215.6 billion, from its target of $223.6 billion, and its operating income was down 0.5 percent from its target at $60 billion, according to the filing.Apple last year faced declining revenue as it grappled with the first prolonged slump in iPhone sales. The salary of some other executives were also trimmed.

Apple has removed the New York Times app from its store in China after a government request, in an example of how far the company will go to please the authorities in its third-largest market. From a report: China operates what is thought to be the largest internet censorship regime in the world, blocking thousands of foreign websites viewed as a threat by the ruling Communist party. Google, Twitter, Facebook Youtube and Instagram are all inaccessible. Apple removed the English and Chinese-language versions of the New York Times app on 23 December, although it was not immediately clear why. "We have been informed that the app is in violation of local regulations," said Carolyn Wu, an Apple spokeswoman. "As a result the app must be taken down off the China app store. When this situation changes the app store will once again offer the New York Times app for download in China."

Apple said Thursday its App Store generated $20 billion for developers in 2016, a 40 percent increase from 2015, helped by the popularity of games such as Pokemon Go and Super Mario Run and increased revenue from subscriptions. From a report on CNBC: "2016 was an amazingly great year for the App Store," Philip Schiller, Apple's senior vice president of worldwide marketing, told CNBC. "We continue to advance what is available for developers to create. And our catalog of apps grew 20 percent to 2.2 million." Schiller said the biggest drivers for the App Store included games such as "Pokemon Go," which was the most downloaded app in 2016; "Super Mario," which was the most downloaded app on Christmas and New Year's days; and subscription-based apps, such as Netflix, Hulu and Time Warner's HBO Go. The tech giant said its biggest day of sales on the App Store was on Jan. 1, 2017, when customers spent a record $240 million. The top grossing markets included the U.S, U.K., Japan and China, which saw 90 percent year-over-year growth.

Apple said Wednesday it plans to invest $1 billion in SoftBank's new technology fund to help finance technologies it could use in the future. From a report: SoftBank has said it is investing at least $25 billion in the fund and has been in talks with Saudi Arabia's Public Investment Fund for an investment that could go up to $45 billion. "We believe their new fund will speed the development of technologies which may be strategically important to Apple," company spokesman Josh Rosenstock told Reuters. SoftBank has also said that it plans to make future large-scale investments via the tech fund, rather than on its own.

Silicon Valley veteran Chuq Von Rospach's blog post, in which he has criticized Apple for the things it did last year, has received quite a few nods from developers, analysts and users alike. Von Rospach, who has previously worked at Apple, has lambasted at the company for, among other things, how it has handled the Mac Pro, a lineup that hasn't seen any refresh in ages, and the AirPort routers, which too have been reportedly abandoned. From the post:Back when I was running most of Apple's e-mail systems for the marketing teams, I went to them and suggested that we should consider dumping the text-only part of the emails we were building, because only about 4% of users used them and it added a significant amount of work to the process of creation and testing each e-mail. Their response? That it was a small group of people, but a strategic one, since it was highly biased towards developers and power users. So the two-part emails stayed -- and they were right. It made no sense from a business standpoint to continue to develop these emails as both HTML [and] text, but it made significant strategic sense. It was an investment in keeping this key user base happy with Apple. Apple, from all indications I've seen over the last year and with the configurations they've shipped with these new laptops, has forgotten this, and the product configurations seem designed by what will fit the biggest part of the user base with the fewest configuration options. They've chopped off the edges of the bell curve -- and big chunks of their key users with them. The most daunting sentence from his post, according to Nitin Ganatra, who worked at Apple for 18 years and headed engineering of iOS, is, "If you just look at the numbers, things are okay."

fiannaFailMan writes: Norton has announced the launch of a smart router designed to protect connected home devices from intrusions. The Symantec-owned company says the device aims to keep safe up to 20 devices connected to it, including Windows computers, Macs, phones, tablets or any internet-of-things devices, in real time. Norton Core, shaped a little like a geodesic dome, can isolate an infected device from the rest of your network to prevent the spread of any malware. Some of the technical specifications include a dual-core 1.7GHz processor, 1MB of system memory and 4GB of flash memory, and the latest 4x4 AC2600 Wi-Fi standard, with a top speed on the 5GHz band of 1.73 megabits per second and up to 800Mbps on the 2.4GHz band. It also features four Gigabit LAN ports and can cover between 3,000 and 5,000 square feet.

An anonymous reader writes: A lawsuit filed against Apple last week argues that, by not actually making a product that it patented, the company is partly responsible for an automobile accident. According to Jalopnik, James and Bethany Modisette are suing the tech company after a car crash two years ago that killed one of their daughters and injured the rest of the family. The driver of the car who hit them had been using Apple's FaceTime video chat at the time. The patent in question was first applied for in 2008, and describes "a lock-out mechanism to prevent operation of one or more functions of handheld computing devices by drivers when operating vehicles," such as texting or video chatting. The complaint cites Apple's "failure to design, manufacture, and sell the Apple iPhone 6 Plus with the patented, safer, alternative design technology" -- in other words, lack of the program's inclusion -- as a "substantial factor" in the crash.

After surveying over 9,000 Android and iPhone users, Nielsen's "Electronic Mobile Measurement" has calculated the 10 most popular apps of 2016. Interestingly, the #1 and #2 most popular apps of the year were Facebook and Facebook Messenger. BrianFagioli writes: Facebook holds the first, second, and eighth spots -- remember, the company owns Instagram too. Google has the most number of spots in the top 10, with three, four, five, six, and seven [YouTube, Google Maps, Google Search, Google Play, and Gmail]. Rounding out the bottom of the list is Apple [for Apple Music] and Amazon. Google Play is sort of a weird inclusion, however, as it is the app which downloads other apps -- it probably should have been excluded.

Amazon saw insane growth, seeing a massive 43 percent year-over-year gain. Instagram comes in at second place with 36 percent. Facebook Messenger scores the third spot. The biggest surprise is that Apple Music is the top streaming music app, beating apps like Pandora and Spotify...because other music apps had huge head-starts.

Patently Apple has recently uncovered a new Apple patent that may help AirPods stay in your ears. The patent details a magnetic mechanism that wraps around the user's ear. Digital Trends reports: The magnets attract each other through the ear tissue, keeping the AirPods in place and ensuring that they don't get lost. Of course, it's not certain if Apple filed this patent with AirPods in mind -- one of the images clearly shows a wired pair of headphones, and the patent was filed in June. The concept, however, would help keep both wired and wireless earbuds in place. The issue of keeping AirPods in the ear has been arguably the biggest issue related to the AirPods, and for good reason -- they're pretty expensive little devices, so losing them is definitely not something you want to do. It's possible that Apple decided against using the ear hooks for aesthetic reasons -- Apple is known for its excellent design and the ear hooks in the patent don't exactly look great. Not only that but the design of the charging case would have to change with the ear hooks. Some reports indicate that the patent could be implemented with future versions and given the hullaballoo surrounding keeping AirPods in, we wouldn't be totally surprised. It's also possible, however, that Apple patented the design but ultimately ended up nixing it.

A new report from Nikkei Asian Review says that Apple will cut iPhone production by around 10% in the first quarter of 2017. From the report: This comes after the company slashed output in January-March 2016 due to accumulated inventory of the iPhone 6s line at the end of 2015. That experience led Apple to curb production of the iPhone 7, introduced in September, by around 20%. But the phones still have sold more sluggishly than expected. Information on production of the latest models and global sales suggests cuts in both the 7 and 7 Plus lines in the coming quarter. The larger iPhone 7 Plus, which features two cameras on its back face, remains popular. But a shortage of camera sensors has curbed Apple's ability to meet demand for the phones. U.S. research company IDC forecasts global smartphone shipments in 2016 on par with the 2015 level. Even Apple has had difficulty creating appealing new features, stifling demand from customers who otherwise would look to upgrade to the latest device.

Foxconn Electronics is automating production at its factories in China in three phases, aiming to fully automate entire factories eventually, according to general manager Dai Jia-peng for Foxconn's Automation Technology Development Committee. From a report on DigiTimes: In the first phase, Foxconn aims to set up individual automated workstations for work that workers are unwilling to do or is dangerous, Dai said. Entire production lines will be automated to decrease the number of robots used during the second phase, Dai noted. In the third phase, entire factories will be automated with only a minimal number of workers assigned to production, logistics, testing and inspection processes, Dai indicated.

Consumer Reports took many by surprise last week -- certainly Apple -- when it said it doesn't recommend the company's new MacBook Pro models. The American magazine, which has garnered credibility over 80 years of its existence, said battery life on Apple's new laptops was all over the place -- hitting 19 hours in a test, but less than four hours in another. Last week, Apple's VP of Marketing, Phil Schiller insisted that Consumer Reports' findings didn't match the company's field data, and that Apple was working with Consumer Reports to understand its review. Now Consumer Reports has responded: The nonprofit organization is standing by its initial verdict in which it did not give the MacBook Pro (2016) its "recommended" rating. The organization has now said it doesn't think re-running the tests will change anything. "In this case, we don't believe re-running the tests are warranted for several reasons. First, as we point out in our original article, experiencing very high battery life on MacBooks is not unusual for us -- in fact we had a model in our comparative tests that got 19 hours," it said. "Second, we confirmed our brightness with three different meters, so we feel confident in our findings using this equipment. Finally, we monitor our tests very closely. There is an entry logged every minute, so we know from these entries that the app worked correctly," it added.

An anonymous reader writes: Like loyalty to a political party or hometown sports team, smartphone users are extremely passionate about their choices -- a commitment that led many customers to stick with Samsung, despite the disaster of its downright dangerous Galaxy Note 7. Earlier this week, mobile analytics firm Flurry published data from the holiday season, showing that Apple saw twice as many device activations as rival Samsung. Despite Apple's continued commanding lead in holiday sales of smartphones and tablets, however, the numbers suggested Apple's share was lower and Samsung's was slightly higher from last year. Attempting to explain the trends shown in the data, NPD analyst Stephen Baker told The Wall Street Journal he believes that Android loyalists are committed, and even dangerous exploding batteries in the Galaxy Note 7 were not enough to push significant numbers of customers over to the iPhone. "Most of those who bought or wanted to buy a Note 7 opted for a different high-end Galaxy phone," Baker said.

It turns out the $159 AirPods Bluetooth earphones are selling well, or so CEO Tim Cook would have us believed. Cook dropped by the New York Stock Exchange on Wednesday while on vacation, and talked about the AirPods sales. From a report on CNBC: In comments to CNBC, Cook declined to talk specifically on Apple's outlook, but he said it has been a "great holiday." He added that the company's new wireless earbuds, AirPods, are "a runaway success." When asked if more would come into stock, he said Apple's "making them just as fast as we can." AirPods debuted at September's splashy event, but saw shipping delays through most of the fall and finally hit shelves just days before the crucial Christmas shopping rush. The limited shipments were sold quickly -- ship dates are now six weeks out on Apple's website.

An anonymous reader quotes a report from Mac Rumors: Apple's iPhone and iPad were the most popular mobile devices gifted during the holidays this year, according to new data shared by Yahoo-owned mobile analytics firm Flurry. Flurry examined device activations by manufacturer between 12/19 and 12/25, finding Apple devices to be twice as popular as Samsung devices. 44 percent of all new phone activations were Apple iPhones, while Samsung smartphones accounted for 21 percent of activations. Huawei, LG, Amazon, Oppo, Xiaomi, and Motorola trailed behind with between two and three percent of activations each. Google's Pixel smartphone, which came out in October, did not make Flurry's list. Last year, Flurry released a similar report, and Apple devices made up 49.1 percent of all device activations, while Samsung devices came in at 19.8 percent. Phablets, or smartphones and tablets ranging in size from 5 inches to 6.9 inches, continued to grow in popularity. In 2016, the phablets category, which includes the 5.5-inch iPhone 6 Plus, 6s Plus, and 7 Plus, was responsible for 37 percent of total device activations. Medium-sized phones, like the 4.7-inch iPhone 6, iPhone 6s, and iPhone 7, were responsible for 45 percent of all activations. Activations of full-sized tablets, like the iPad, have continued to wane. From Flurry's report: "While Samsung is slowly growing in popularity throughout the holiday season, up 1% from last year, Apple devices continue to be the gift to give. Holding the third and fourth positions for activations are Huawei and LG; which is remarkable, as both manufacturers do not have an individual device within the top 35 devices activated. Their high rank is likely due to the fact that they have wide variety of devices and affordable options (hundreds of phablet and medium phones) for consumers to choose from."

When Apple said it would publish its artificial intelligence research, it raised at least a couple of big questions. When would we see the first paper? And would the public data be important, or would the company keep potential trade secrets close to the vest? At last, we have answers. Apple researchers have published their first AI paper, and the findings could clearly be useful for computer vision technology. From a report on Engadget: The paper tackles the problem of teaching AI to recognize objects using simulated images, which are easier to use than photos (since you don't need a human to tag items) but poor for adapting to real-world situations. The trick, Apple says, is to use the increasingly popular technique of pitting neural networks against each other: one network trains itself to improve the realism of simulated images (in this case, using photo examples) until they're good enough to fool a rival "discriminator" network. Ideally, this pre-training would save massive amounts of time and account for hard-to-predict situations that don't always turn up in photos.

Microsoft's $26.2 billion acquisition of LinkedIn could help the Redmond company become the first technology giant to reach a market value of $1 trillion, or so thinks a notable analyst. Analyst Michael Markowski believes that Microsoft will be able to leverage LinkedIn to become a leader in social media space and the emerging crowdfunding platform. So much so that it will beat Amazon, Google, Apple, and Facebook in becoming the first company to hit $1 trillion market value. From a report on GeekWire: Here are the market caps of these big tech companies as of Monday morning: Apple: $622.6B, Alphabet: $549.7B, Microsoft: $489.3B, Amazon: $358.7B, and Facebook: $337.6B. "The public has an insatiable appetite for making small bets and purchasing lottery tickets, etc., that provide the chance to make a big profit," Markowski wrote. "The millennials will be a good example. Many will want to routinely invest $100 or even less into high-risk ventures that could produce returns of 10X to 100X." Microsoft, through LinkedIn, will be able to take advantage of this trend because it has a monopoly on the business social media sphere. Markowski predicts that all the big tech companies will eventually build services to facilitate crowdfunding investments.

Last week, Consumer Reports concluded that it won't be recommending Apple's new MacBook Pro models. The American magazine published since 1936 by Consumers Union, a nonprofit organization, cited inconsistent battery issues for not recommending the MacBook Pro for the first time in its history. Apple's VP of Marketing has since addressed the report, saying they are working with the magazine to understand the results. From a report: Apple Senior Vice President Phil Schiller followed up with a tweet late Friday saying Apple is "working with CR to understand their battery tests. Results do not match our extensive lab tests or field data." Consumer Reports' review says that in-house testing revealed wild fluctuations in battery life for unplugged MacBook Pro computers. In the case of the 13-inch model without a Touch Bar, for example, battery life ranged from 19.5 hours to just 4.5 hours. Apple says the devices should operate for up to 10 hours between charges.

In less than a week after Nokia sued Apple for patent infringement in courts around the world, saying that Apple has refused to license its patents, Apple has pulled all Withings products from its stores. Earlier this year, Nokia bought Withings, which makes Wi-Fi scales and other digital health and fitness gear.