★ The U.S. Patent and Trademark Office on Thursday published a patent application attributed to Apple based on work done by AuthenTec’s co-founder. This Patent is is for a chip that can be embedded in a mobile device that will sense fingerprints on the Main “LCD” Display as a way of Authenticating the User before giving user-access to the iPhone. FingerPrint bio-metric authentication security measures for iPhones is an important security component, as the iPhone will literally become your Wallet some day soon. Fifteen years ago when we adopted digital-imaging, I said to my students, Film is Over. This took 15 years to accomplish; 7 years ago some were holding onto the thought that Film will survive. Film is over, Kodak’s in Bankruptcy, Fuji
★ Permit me to predict again, Credit Cards, Checks & Cash are Over, as with a FingerPrint Secured Access iPhone, using NFC (near field communications), when the User wants to Pay for something, they waive their iPhone near the Coffee Shop’s Register, and víola, your iPhone’s Display will show the amount to be Paid, to whom you’re paying, date paying… you press OK, and “money authentication” is complete, and Dollars pass from You to Them. Done. Want to Tip the Waitress, no problem, the Vendor’s NFC transmission will give you an opportunity to add a Tip Amount to the Amount Due. In the near Future, portable “Registers” will be brought to your table so the NFC may communicate with your iPhone while seated at your Table or Bar-chair. Vending Machines too, Pick an item, waive your iPhone an inch or two, near the Vending Machine, and viola, your Soda or Chips, or Sandwich is paid once you Press Pay on your iPhone.
★ Apple’s patent sounds like it will allow the chip to be inserted in the device, but gives Apple’s device engineers more room to work with than traditional biometric security solutions. From the application:
★ When using a semiconductor fingerprint sensor, or integrated circuit fingerprint sensor, in a portable electronic device, for example, a mobile telephone, it may be desirable to locate the integrated circuit of the fingerprint sensor separately from the finger sensing region. Separating the finger sensing integrated circuit (IC) from the finger sensing area may be particularly advantageous when the finger sensing area is relatively thin and transparent so that it may be placed over the top of a display of the portable electronic device, and wherein the IC may be located in a nearby non-display region of the portable electronic device.
★ There’s been a lot of speculation that the next iPhone will have a fingerprint-sensing security feature. Much of that has been assuming the sensor would be under the home button. But being able to put it in a display could mean iOS’s traditional “swipe to unlock” could seamlessly include another layer of security — for an iPhone, an iPad, the touchpad of a MacBook — or possibly even a future wearable device.
★ Of course, there’s the standard caveat for any Apple patent filing: the company files a lot of patents and it doesn’t necessarily mean the technology will make its way to Apple product some day. But in this case, it’s the first patent application to come out of Apple’s purchase of AuthenTec. We know the two companies were working on a project together even before the acquisition, and this is a good indication of the direction the two are going in.
★ Apple has stayed quiet as usual, on what it has been up to with AuthenTec since it acquired the mobile security company a year ago. But this patent filing offers some insight into what Apple are partnering on. The news s a FingerPrint sensors that can be embedded into the iPhone’s main Display.
★ The fingerprint recognition chip is designed by AuthenTec, an enterprise that Apple acquired for $356 million in July 2012. Issues related to the original design of the chip reportedly caused the lower yield rates, claimed the sources, adding that Apple outsources the production of the fingerprint recognition chips to Taiwan Semiconductor Manufacturing Company (TSMC) and the packaging of the chips to Xintec.
★ The report also claims that production for the new device was supposed to start in late June or early July, but because of yield problems the ramp-up may be delayed at these suppliers until late July. According to Digitimes’ sources, this may result in Apple delaying shipments of three million iPhone 5S into the fourth quarter.
★ Jeffries analyst Peter Misek, mentionied Monday (July, 15) that “small batch production” of the iPhone 5S had begun last month, with mass production ramping up later this month.
★ In early April, a more reliable source, KGI Securities analyst Ming-Chi Kuo reported that production issues would likely “delay” iPhone 5S into September and that Apple’s third quarter may see smaller shipment growth than previously expected.
★ TruePrint fingerprint sensing technology from AuthenTecReuters followed up with its own report in late April, mirroring Kuo’s report claiming that production issues would likely result in delay’s for Apple’s newest flagship device.
★ Recall, at Apple’s recent 2013 earnings call, CEO Tim Cook gave warning to the Analyst arena (and indirectly to the Rumor Community) that predicting future Apple activities, based on supply chain chatter, was unreliable as Apple has multiple sources for device components, each delivering varying Yields and inconsistent supplier performance.
★ Apple’s iPhone 5S is expected to launch sometime in the fall of 2013. Irrespective of the analyst’s writings or the rumor mill, Apple will release the next iteration of the iPhone when the device is deliverable at the very high quality standards that Apple demands, and certainly not mitigated by any chatter.
★ Apple is gearing up to begin production on the iPhone 5S later this month with the goal of releasing it in late September or early October, Jefferies analyst Peter Misek wrote in a note to investors this morning.
★ In addition to the iPhone 5S, Apple also last month started production of the much-rumored lower-cost iPhone, which will be priced at around $300 to $400, he added.
★ Misek believes Apple will put in orders for 25 to 30 million iPhone units during the fall quarter, then ramp up to 50 to 55 million units during the holiday period. For the quarter beginning in December, Apple plans to build around 5 million iPhone 4S handsets, 20 million low-cost iPhones, and 25 million iPhone 5S handsets. He didn’t mention the iPhone 5 $605.00 at Amazon.
“Although the large build plan indicates Apple’s confidence in the new product launches, we remain cautious as our checks indicate mostly incremental feature upgrades for the iPhone 5S,” the report notes. “The Galaxy S4 $599.99 at Amazon continues to take share and the iPhone 5S will also have to compete with Google’s Moto X phone.”
★ Hoping the iPhone 5S would look completely different than its predecessors, don’t hold your breath. We should note that Misek’s past predictions haven’t always been completely accurate.
★ Misek’s previously forecasted that iPhone 5S production would begin in March for a June or July release. In addition, last year Misek incorrectly predicted that the launch of an Apple-branded television set was near.
★ Misek’s latest forecast does, however, follow reports that contract manufacturing giant Foxconn has been recruiting factory workers to build Apple’s next iPhone. The Foxconn hiring push is being conducted “specifically for production of a new iPhone model,” according to a recent DigiTimes report.
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