Apple’s FaceTime bug and why iPhone sales are slowing down

Apple's FaceTime fiasco, iPhones sales are down, and is the iPod staging a comeback? That's all coming up in this edition of Apple Core. [MUSIC] Apple's latest iOS 12.2 beta holds clues of what we can expect in the next round of product analysis. Twitter user @troughtonsmith discovered the code in the latest beta that mentions Four versions of an iPad. Now this is rumoured to be that long awaited iPad mini sequel. So why four? Well it could refer to an LTE and WiFi version along with different storage tiers. There is also a rumour of a new low cost, 10 inch iPad. That one would replace last years 9.7 inch iPad. And if this is true, it could arrive in March or April if it's in line with other years. Now it's definitely not the first time we've seen these software clues in some of its beta code, and it also aligns With what we heard from a report from My Smart Price. That mentions seven new iPad models registered under the Eurasian Economic Commission. Where Apple has to register all its new products before launch. So what are we expecting? Well, rumors right now point at cheaper components than last years Pros. Which is to be expected because these are really meant to be budget iPads, or Budget for Apple, with nil-face ID, so touch ID instead of face ID, and slower processors. The code also mentioned a new iPod Touch, as pointed out here in Mac Rumors. So this would be a seventh-generation iPod Touch, and the first time this product has seen a refresh since 2015. No details yet on what this new iPod Touch will look like, but we'll keep you posted. We've talked a lot about Apple's new video streaming service that's supposed to hit very, very soon, but not it seems like they may have another service in the works. According to a report in Cheddar, Apple may also be developing a subscription-based gaming service. Now the report says they're still in early talks and that it's not a done deal yet, so don't expect it any time soon. But would make sense considering Apple's strategy in 2019 of beating up its service industry to counteract the effect of those decreasing iPhone sales, which brings us to our next topic. Tim Cook could warn investors that this was not gonna be a good quarter for iPhone sales. But we finally got official confirmation this week when Apple announced its first fiscal quarter earnings report. The main take-away, iPhone sales are down by 15% from last year and overall revenue for the company is down about 4%. which doesn't seem like a lot until you realize that four percent still counts for several billion dollars. So what went wrong? Well, according to Tim Cook there have been several factors at play, like obviously. The slowing economy and the trade war with China is one of them. But less subsidies with cell phone carriers is another one and those 11 million batteries they replaced in 2018. He even admitted that he was warned about the effects of lowering the cost of the battery replacements. And sure enough. It allowed users to keep their old phones longer and just not update to the newest iPhones. What's interesting is that the rest of Apple's lineup is doing really, really well. Revenue for Apple services rose by 19% as Apple Music reached 50 million paid subscribers While they're home and accessories knock and wearables, also rose by 33 and 9% respectively. Even iPads sales were up this quarter, which goes to show you how important the iPhone is to the company. Even these successes were not enough to counteract the iPhone effect on Apple. Which is why the company's really looking to invest in that service sector, as we mentioned before. Or find that novel feature that's gonna make users excited about buying a new Price the iPhone again. [SOUND] You know what's not gonna help? Apple's face time glitch. For a brief moment in time face time could be eased to eavesdrop on other people allowing the caller to hear or see what the other person was up to without having to accept the call. The flaw was apparently First discovered over a week ago by a 14 year old in Arizona while setting up a group Face Time call to play Fortnite with his friends. The teen and his mom Michelle Thompson were then able to recreate the flaw as shown in their video. They tried to warn Apple of the flaw with Twitter and Facebook and emails but Apple didn't get the memo and they never responded because apparently they needed a developer's account to report the bug in the first place. But in the meantime, word got out on social media and by Monday, it was viral. And the damage had been done. Apple has since had to pull the group FaceTime feature while it's working on the patch the flaw. In exchange for finding the flaw, the teen's mom told reporters he would like Apple to give him a new MacBook, iPhone X, and a set of AirPods. And that the company should reward that kind of discovery Even when it comes from someone other than a developer. All right, it's time to hear from you guys. Should Apple give this kid what he's asking for? Tweet me your thoughts, or answer on the comment section below and come back next week for more Apple Core and what I'm hoping will be better news for the iPhone. [MUSIC]