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India is expected to overtake the US as the second-largest smartphone market next year (Source: Thinkstock Images)

India is expected to overtake the US as the second-largest smartphone market next year with robust annual growth, says a Morgan Stanley research report.

According to the report on global technology and telecom, the country’s smartphone market will grow at a compounded annual growth rate (CAGR) of 23 percent through 2018 and would account for 30 percent of the global growth during the period.

“We expect India to overtake the US next year as the second-largest smartphone market by units. India will grow nearly five times faster than the world’s largest smartphone market China, where growth has decelerated,” the report said.

It added, “We estimate a 23 per cent CAGR in units in India, compared with 5 percent over the same period in China. By 2018, we estimate 192 million smartphones will be shipped to India or 11 percent of global units.”

Morgan Stanley said there are only 225 million smartphone subscribers in the country, accounting for 18 percent of the total population.

“The improvement in demographics, as measured by declining age dependency, has been one of the most important factors supporting higher potential growth in India… We expect consumption to maintain a relatively high growth rate, driven by an increase in per-capita income growth and an emerging middle class,” it noted.

On consumption of data, the report said the country is on the cusp of significant growth in data traffic driven by rising data users as well as growing data usage per user.

“We expect India’s internet penetration to reach 50 per cent by 2018, up from 26 percent last year, driven by rising smartphone availability and affordability, online content and changing user behavior,” it said.

The global consultancy estimates 4G smartphones will account for 75 percent of 170 million shipments by the next year, which currently has less than 1 per cent subscriber penetration in the country.

The report, which is based on 2,600 urban smartphone buyers, said the respondents paid an average of Rs 8,500 for their smartphones and plan to spend 40 percent more on their next phone.

Source : http://indianexpress.com

A team of researchers has come up with a smartphone application that projects a magnified smartphone screen to Google Glass

Having trouble seeing items on your phone screen? Now, a team of researchers has come up with a smartphone application that projects a magnified smartphone screen to Google Glass, which users can navigate using head movements to view a corresponding portion of the magnified screen.

They have shown that the technology can potentially benefit low-vision users, many of whom find the smartphone’s built-in zoom feature to be difficult to use due to the loss of context.

“When people with low visual acuity zoom in on their smartphones, they see only a small portion of the screen, and it’s difficult for them to navigate around – they don’t know whether the current position is in the center of the screen or in the corner of the screen,” said senior author Gang Luo from Schepens Eye Research Institute of Mass. Eye and Ear.

Luo added that this application transfers the image of smartphone screens to Google Glass and allows users to control the portion of the screen they see by moving their heads to scan, which gives them a very good sense of orientation.

In an evaluation of their new technology, the researchers observed two groups of research subjects (one group that used the head-motion Google Glass application and the other using the built-in zoom feature on a smartphone) and measured the time it took for them to complete certain tasks. The researchers showed that the head-based navigation method reduced the average trial time compared to conventional manual scrolling by about 28 percent.

As next steps for the project, the researchers would like to incorporate more gestures on the Google Glass to interact with smartphones. They would also like to study the effectiveness of head motion-based navigation compared to other commonly-used smartphone accessibility features, such as voice-based navigation.

“Given the current heightened interest in smart glasses, such as Microsoft’s Hololens and Epson’s Moverio, it is conceivable to think of a smart glass working independently without requiring a paired mobile device in near future,” said first author Shrinivas Pundlik. “The concept of head-controlled screen navigation can be useful in such glasses even for people who are not visually impaired.”

The study is published online in the journal IEEE Transactions on Neural Systems and Rehabilitation Engineering.

Source : http://indianexpress.com

More than one million people are now connecting to Facebook through Tor dark web every month

More than one million people are now connecting to Facebook through Tor “dark web” – which maintains privacy and leaves no digital trail – every month, media reports said on Saturday.

According to Facebook, the growth of Tor over the past few years has been “roughly” linear, noting that some 525,000 people who accessed the service via Tor in June 2015 rose to more than one million in April this year.

“This [Tor] growth is a reflection of the choices that people make to use Facebook over Tor, and the value that it provides them. We hope they will continue to provide feedback and help us keep improving,” TechCrunch quoted Facebook as saying.

Tor allows anonymous web browsing by sending data through multiple encrypted steps rather than making direct connections that shields the identity of its users.

Facebook created a dedicated address for Tor access in October 2014, making it easier for users to connect via Tor and give them privacy.

Facebook also expanded its Tor support at the start of this year by rolling out support for the Android Orbot proxy, giving Android Facebook users an easier way to use Tor. Apple’s iOS platform still does not have Tor support.

Confirming Facebook’s claim, a spokeswoman for Tor said in a statement: “When using Facebook website over Tor, Tor Browser is in charge of that data, so it is anonymous. Of course, someone may post a status update saying that they are at some restaurant, for instance, and that would de-anonymise them.”

Tor could be used in countries where internet access or use of Facebook is blocked or censored, the Tor statement added.

“Many people use Tor in countries where the internet is censored, not in order to be anonymous. Tor allows them to access the uncensored internet, including reaching Facebook. In Iran, for instance, Facebook is blocked. So people use Tor to get onto the internet and browse and from there they can reach Facebook,” it read.

Privacy activists, hackers, activists and journalists use this “dark web” to communicate securely.

Source : http://indianexpress.com

PressPlay TV aims to bring in-flight entertainment to trains and buses with the help of smartphones (Source: PressPlay)

This February, the Indian Railways switched on video-on-demand services on two trains running between Delhi and cities in Rajasthan. It was a first for railways in India, where otherwise the most entertaining options are limited to a cheap paperback from Higgin Bothams Railway Minister or ‘timepass’ snacks.

PressPlay TV, the company that enabled the service, hopes to have the service rolling on over 30 trains by year-end. In fact, the company already does this on many intercity buses and has 3,000 hotspots running across the country. Co-founder and COO George Abraham says there will be 10,000 of these in a few months from now.

Explained: What is Google’s Wi-Fi at 100 railway station project and how will it work

In a chat with IndianExpress.com, Abraham explains that his technology is primarily the box, “double the height of a set-top-box”, which stores content locally and lets users connect using the PressPlay app to stream the content at superfast speeds. “Our goal is to bring the airline experience of in-flight entertainment to other modes of transport, but using the smartphone to create that personalised entertainment solution,” he adds.

So how does the technology work? The box stores the content and also houses the router. The same box is used for busses and trains, but with the latter range as well as a number of concurrent users is increased. Still trains need one server per coach to ensure smooth performance, Abraham says, reminding us that the box is “completely made in India”. The content is refreshed once in 30 to 45 days and there are people on the ground who check on the device once in three or four days, explains Abraham.

“To make the content relevant, the focus is on making it highly localised with a good mix of long form as well as short form,” Abraham says, adding that they have a good mix of languages too.

PressPlay TV has an ad-funded model for now and Abraham says they make enough to cover the costs. He is more happy about the user acquisitions for the OTT app. “The great strategy for us is that we are acquiring new users every single day on the bus or train and without spending on marketing.” Over time, he plans to add premium content that can be charged for. For now, most of the content is sourced free and that lets PressPlay TV stay viable.

“The railways views it as a new initiatives programme. We are evolving as well. We have been given timeframes to evolve and come up with a revenue model,” he adds. Being a trendsetter is a bit of an issue, for PressPlay TV “doesn’t have someone to emulate or copy”. “That is the good as well as bad as we have no benchmarks to follow.”

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Source : http://indianexpress.com

The blocking of Apple mobile entertainment services in China poses fresh challenges for the tech company (Source: AP)

The blocking of Apple mobile entertainment services in China poses fresh challenges for the tech company as it prepares to report its first-ever drop in iPhone sales.

The news on Thursday that Apple Inc’s online book and film services had gone dark in China came at a vulnerable moment for the company. Apple executives have said that iPhone sales will fall for the first time in the company’s second quarter, and the results for that quarter will be released on Tuesday. Investors are sensitive to any signs of trouble in Greater China, the company’s second-largest market by revenue.

Apple executives have flagged the growing services business as a potential source of revenue as sales of the company’s flagship devices level off, upping the stakes for success in China, said analyst Bob O’Donnell of TECHnalysis Research.

“It raises questions in an area that we know long-term is going to be very strategically important to Apple,” he said.

The New York Times reported on Thursday that a state regulator demanded Apple halt the service. The move came after Beijing introduced regulations in March imposing strict curbs on online publishing, particularly for foreign firms.

Still, the outage is only troubling if it persists, O’Donnell said. Apple said in a statement on Thursday that it hopes to make the services available to customers in China as soon as possible.

Apple has a strong track record of working with officials in China, where it has launched a series of services including mobile payment Apple Pay, but some analysts questioned whether the company may receive a chillier reception in the future.

“Is this the beginning of more pressure on Apple by the Chinese government?” asked analyst of Frank Gillett of research firm Forrester. “It’s a symbolic turn, and the question is to what extent is it a harbinger.”

The company released its book and movie services in China only late last year, leaving Chinese consumers little time to form a habit.

“People who are buying iPhones in China aren’t buying them for iTunes,” said O’Donnell. “They are buying it for the status and the cachet of owning an Apple product, and that is really more about the hardware.”

Chinese consumers’ appetite for the phones themselves will be critical to quarterly earnings. Apple is expected to post its first-ever quarterly drop in iPhone sales, to about 50 million units, reflecting a saturated global market.

Wall Street expects adjusted earnings per share to drop 14 percent to $2.00 and revenue to drop 10 percent to $52.0 billion, according to Thomson Reuters I/B/E/S.

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Source : http://indianexpress.com

Sony Xperia Z3 is the first non-Nexus device to get Android N Developer Preview (Source: Google)

Google is expanding its Android N Preview to non-Nexus devices with Sony’s Xperia Z3.

Google in a blog post announced that the preview version of next Android will be available for test on Sony’s Xperia Z3 smartphone. The Android N Preview was initially available to Google’s Nexus 5X, Nexus 6P, Nexus 6, Nexus Player, Pixel C tablet and Android One based General Mobile 4G devices.

Also Read: Android N developer preview: Split-screen multitasking, interactive notifications and more

Google’s post reads, “Sony has been working closely with us to bring you the N Developer Preview on Xperia for early testing and development.”

With Android Marshmallow having turned almost a year old and most Android devices still stuck on Lollipop and KitKat version, the Android N Preview can be seen as an effort to deliver faster OS updates.

For those interested in trying out N Preview on Xperia Z3, the latest preview build can be downloaded from here and then manually flashed to the device. Google says all future Developer Preview will be available as an OTA update.

Recommended: Android N update revealed: VR mode, 3D Touch like support and more

© The Indian Express Online Media Pvt Ltd

Source : http://indianexpress.com

Government is likely to exempt iPhone and iPad maker Apple from mandatory local sourcing rule (Source: Reuters)

Government is likely to exempt iPhone and iPad maker Apple from mandatory local sourcing rule, a move which would pave the way for tech giant opening single-brand retail stores in the country.

The company had given a detailed presentation to a committee headed by DIPP Secretary Ramesh Abhishek on April 19, on its products, technology, innovations and camera.

By early next week, the Department of Industrial Policy and Promotion (DIPP) would send the proposal for final approval to Finance Ministry, sources said.

“The panel has looked into the detailed proposal. The committee feels that it is a fit case for exemption of the mandatory sourcing norms,” they added.

The US-based company has sought approval from the government on setting up single-brand retail stores in the country.

As per the foreign direct investment (FDI) norms, the government may relax the mandatory local sourcing norms for entities undertaking single-brand retailing of products having state-of-the-art and cutting edge technology and where local sourcing is not possible.

The government had set up a committee to decide whether a product is state-of-the-art and can be eligible for exemption from the mandatory local sourcing applicable for FDI single brand retail trading.

At present, 100 per cent FDI is permitted in the single-brand retail sector but companies are required to take FIPB permission if the limit exceeds 49 per cent.

The company sells its products through Apple-owned retail stores in countries including China, Germany, the US, the UK and France.

Apple has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.

Chinese smartphone maker Xiaomi has also submitted an application to open stores in the country.

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Source : http://indianexpress.com

Source : http://indianexpress.com

The government said it no longer needs Apple’s assistance to unlock the iPhone and is withdrawing its request for an order requiring Apple’s cooperation in the drug case.

“As we have said previously, these cases have never been about setting a court precedent; they are about law enforcement’s ability and need to access evidence on devices pursuant to lawful court orders and search warrants,” Justice Department spokeswoman Emily Pierce said in a statement.

The Justice Department had sought to compel the Cupertino, California-based Apple to cooperate in the drug case, even though it had recently dropped a fight to compel Apple to help break into an iPhone used by a gunman in a December attack in San Bernardino that killed 14 people. In that case, a still-unidentified third-party came forward with a technique that managed to open the phone. That entity has not been named, and the Justice Department has not revealed the method used.

Representatives for Apple did not immediately respond to a request for comment Friday night.

The tech giant had been fighting the Justice Department’s attempts and said in court papers last week the government’s request was extraordinary because there is likely minimal evidentiary value of any data on the phone and that Congress never authorized it to pursue such requests through the 1789 All Writs Act. It also said there is no proof Apple’s assistance was necessary and that the same technique the FBI was using to get information from the phone in California might work with the drug case phone.

But prosecutors had argued that the government needed Apple’s assistance to access the data, which they contended was “authorized to search by warrant.”

On Thursday, several law enforcement groups filed arguments in Brooklyn federal court saying they feared the public will stop aiding police if Apple is allowed to refuse to give up information from the phone in the drug case. The groups said they supported the government’s efforts to try to reverse a magistrate judge’s ruling earlier this year for Apple.

Source : http://indianexpress.com

Microsoft and Google have reached a deal to withdraw all the regulatory complaints against each other

Microsoft Corp and Alphabet Inc’s Google have reached a deal to withdraw all the regulatory complaints against each other, the companies told Reuters.

“Microsoft has agreed to withdraw its regulatory complaints against Google, reflecting our changing legal priorities. We will continue to focus on competing vigorously for business and for customers,” a Microsoft spokesperson said in an email.

Read: Microsoft and Intel face different challenges in shifts to cloud

Google, in a separate email, said the companies would want to compete vigorously based on the merits of their products, not in “legal proceedings”.

The companies in September agreed to bury all patent infringement litigations against each other, settling 18 cases in the United States and Germany.

“… Following our patent agreement, we’ve now agreed to withdraw regulatory complaints against one another,” Google said on Friday.

Recommended: Microsoft to end the production of Xbox 360: Here’s the reason why

Google’s rivals had reached out to U.S. regulators alleging that the Internet services company unfairly uses its Android system to win online advertising, people with knowledge of matter told Reuters last year.

The European Commission also accused Google last year of distorting internet search results to favor its shopping service, harming both rivals and consumers.

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Source : http://indianexpress.com

Many taxpayers think that if they simply don't put something on their tax return, then the IRS will never know about it. But more often than not, there are mechanisms in place that alert the IRS to things that it needs to know about in order to calculate your proper tax liability. That's definitely the case when you leave your job and cash out an old 401(k) retirement account, because even if you don't tell the IRS anything about what you did with your 401(k), your old employer definitely will. Below, we'll take a closer look at how the IRS gets information and what you can do to avoid tax.

What your employer does when you cash out a 401(k)
The IRS knows that taxpayers won't always voluntarily comply with the tax laws, so whenever it can, it builds redundancy into the system. Most taxable income comes from employment, and so dual mechanisms that require both employers and employees to report income items make it far easier for the IRS to double-check on everyone involved and make sure it has complete information.

For retirement accounts, the IRS gets its information from the Form 1099-R that employers are required to complete. The form includes the total amount of money distributed to you, as well as the amount of the distribution that you'll need to include in your taxable income. Your employer also includes any money that it withholds from your distribution to go toward federal and state income tax, and you'll see other information that can be helpful in special circumstances that require additional work to determine what you'll need to report on your tax return.

Apart from the gross distribution and taxable amount boxes, the most important entry on Form 1099-R is the distribution code. If you take a distribution before you turn age 59 1/2, then your 1099-R will typically have code 1, which corresponds to an early distribution for which no known exception to the 10% penalty applies. For 401(k)s, if your employer knows that you have separated from service and are at least 55, then a penalty exception applies, and code 2 will be marked. For those who are 59 1/2 or older, you'll typically see code 7, which is used for a normal distribution.

The legal way to avoid tax
Because the taxable amount is on the 1099-R, you can't just leave your cashed-out 401(k) proceeds off your tax return. The IRS will know and you will trigger an audit or other IRS scrutiny if you don't include it.

However, there are a couple things you can do. If you haven't yet left work, simply don't cash out your 401(k). Either leave it at your employer or arrange to have it transferred directly to a rollover IRA or your new 401(k) account at your new job. That avoids taxation, and you won't even get a 1099-R.

Alternatively, if you already have the cash but it's still within 60 days since you got it, you can roll it over yourself into a new IRA. You'll get a 1099-R in this case, but you still won't owe tax as long as you meet the rollover rules.

If you cash in your 401(k), the IRS will know. So don't try to cheat your way out of paying tax. Instead, do the smart thing and keep your retirement money where it belongs.

This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center in general or this page in particular. Your input will help us help the world invest, better! Email us at knowledgecenter@fool.com. Thanks -- and Fool on!

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Buyback programs, when timed right, can supercharge a company's returns. By reducing the outstanding share count, they increase the portion of earnings that each remaining share of stock is entitled to.

In this clip from Industry Focus: Tech, Sean O'Reilly and Dylan Lewis talk about Microsoft's (NASDAQ:MSFT) beautifully executed buybacks during the 2000s, and how they accomplished everything a buyback should. The two look at the company's timing, exactly how it executed the share purchases, and the impact it had on the Redmond giant.

A full transcript follows the video.

A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.

This podcast was recorded on April 15, 2016. 

Sean O'Reilly: Yeah, and actually, that's a great segue to the company that I wanted to highlight, which is Microsoft. They have arguably had a monopoly since the late '80s. (laughs) Like, 90% market share the entire time, of the PC market, probably higher. They didn't start paying out a dividend until 2003.

As I'm going to point out in a second here more in depth, they didn't really start buying back shares in earnest until the mid-2000s. They bought back a few, I think we looked earlier, it was like a couple hundred million dollars, in the '90s. And that was clearly just to take care of the dilution from all the options they were giving employees. They have a monopoly, they're generating billions of dollars in free cash flow, and they didn't even do what GoPro did until way later. I mean, that's just ...

Dylan Lewis: It's baffling.

O'Reilly: Guys, what are you doing?

Lewis: So, what else do you have, in terms of Microsoft's strengths in capital allocation?O'Reilly: So, bringing it around, what I wanted our listeners to know was, most of us probably know, Microsoft shares have kind of languished a little since the bubble popped in 2000. The stock was at huge multiples, and they didn't really go anywhere until very recently, until Ballmer stepped down and they got the new CEO, Nadella.

After the bubble popped, they bought back anywhere from 3 to 6.5 billion worth of shares in 2001 and 2005. The stock kept languishing, so they were like, "We're making more and more money every year." Profits went from $7 billion in 2001, they were $12 billion in 2005, they kept growing over $20 billion by the early 2010s. So, the business is doing fine this whole time, but the shares just aren't going anywhere. So, clearly, as responsible capital allocators, they're going to be like, "Maybe we should buy back some shares."

Lewis: Yeah, let's slice this pie a few less times.

O'Reilly: Exactly. That's what they started doing in 2005, in a big way. In 2005, they bought back $8 billion shares. In 2006, $19 billion. 2007, $27 billion, and all of this is after paying that $32 billion special dividend in 2003. It's really funny to see huge $2-3-4 --

Lewis: Boop!

O'Reilly: Yeah, it's like boom. $12 billion in 2008 and 2009, $11 billion in 2010, and this whole time, at the depths of the Great Recession, the year when Microsoft bought back $9 billion worth of shares, and the previous year they'd bought back $17 billion, the P/E on Microsoft got as low as 9. [These are] crazy awesome purchases that they are making. The stock went from the mid-teens, it touched bottom in 2009 at $15 per share. All those repurchases were made over the last 10 years, and now Microsoft is at $55. That is awesome!

Dylan Lewis has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool owns shares of and recommends GoPro. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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When a company files for Chapter 11 bankruptcy protection, it doesn't mean that it is going out of business (that's Chapter 7). Rather, Chapter 11 is used by companies that feel their operations can continue profitably but after a restructuring to get its debts under control.

In general, when a company files for Chapter 11 protection, its stock price plummets and a "Q" is added to its stock symbol to clearly indicate that the company is in bankruptcy proceedings. So, what happens to the company's stock when it exits bankruptcy protection?

Last in line
Unfortunately, in the event of a bankruptcy restructuring, common shareholders are last in line when it comes to claiming a company's assets.

One of the main objectives of a Chapter 11 reorganization is to take care of the company's creditors and restructure the debts in a way that the company can continue to operate. And these creditors get paid back in the order of the priority of their claims.

Secured creditors (usually banks) get paid back first, followed by unsecured creditors such as bondholders. If a company has preferred stockholders, they are next in the priority line after bondholders. Stockholders are the last in line, and generally only get anything if the rest of the creditors are repaid in full. And since the reason most companies use Chapter 11 protection in the first place is an inability to pay their debts, you can probably imagine that this doesn't happen too often.

What happens to the stock?
The short answer is that most of the time, the stock of a company in Chapter 11 becomes worthless and shareholders get completely wiped out. Purchasing stock of a bankrupt company for pennies per share and hoping to make a quick buck when the company restructures almost always turns out to be a bad idea.

The company may issue new shares upon emerging from bankruptcy, at which point the old shares are cancelled and become worthless. The new shares are often issued to its creditors in exchange for a reduction or forgiveness of the outstanding debt.

Now, the story doesn't always have a completely sad ending. There have been cases where existing shareholders receive something after the company emerges from bankruptcy -- usually a small portion of the newly created stock or a relatively small cash payment. However, it's not a good idea to count on it. It's rare and usually isn't much even when it happens. A study found that of the 41 publicly traded companies that went bankrupt in 2009 and 2010, shareholders of just four of them got any kind of return at all. The rest got wiped out completely.

In a nutshell, while bankruptcy doesn't have to be a complete death sentence for the investments of the company's common shareholders, that's usually the case.

This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center in general or this page in particular. Your input will help us help the world invest, better! Email us at knowledgecenter@fool.com. Thanks -- and Fool on!

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April is National Poetry month and tech giant Apple (NASDAQ:AAPL) appears to be feeling the spirit of the season.

Source: Apple.

Earlier this week, Apple posted the above poem to announce the dates for its upcoming World Wide Developers Conference (WWDC), one of the most-important events the company holds each year. Here's a quick preview of the products and topics expected to dominate the discussion at WWDC 2016, being held June 13-17.

iOS 10
It's a virtual lock that Apple will use the opening WWDC keynote presentation to debut updates to its mobile and desktop operating systems. Here's what the rumor mill is kicking about in terms of Apple's upcoming mobile software update.

Starting with the most plausible, it appears Apple will enable users to hide at least some of the default apps – game center, stocks, etc. – that the company has long locked into the home screen. One app store analytics company noticed an interesting bit of code Apple recently added to all App Store apps, which reads "isFirstPartyHideableApp." This would be convenient, but far from game-changing. However, given the public deployment of this new code, this rumor seems relatively bankable. Goodbye, game center.

Apple is also reportedly developing a new app to further its efforts to dominate our increasingly smart homes. Predictably dubbed "Home," the app will serve as the missing hub to connect disparate iOS-enabled devices in a single place. With smart appliances and other gadgets only likely to increase in number and importance in our homes in coming years, Apple's efforts to create a single unified space seems like a win for users and the company.

Additionally, Apple has reportedly been experimenting with a new voice mail-dictation service powered by Siri. The service, which is reportedly still being tested by Apple employees, would allow Siri to transcribe your voicemail messages and send you the transcript.

Siri would then send the transcript of her interaction with the caller as an email or iMessage to a user's iPhone. The feature's inclusion in iOS 10 reportedly hinges on Siri's translational accuracy. As you can imagine, there is no shortage of rumors regarding iOS 10's content, but these are a few that appear most often in reading on the subject.

OS X Fuji 
Like its mobile OS brethren, count on Apple debuting the newest version of its Mac software during the WWDC keynote. There hasn't been the same intensity to the speculation about OSX, but several potential features that I've seen discussed could still prove quite alluring.

Primary among them is Apple's likely move to bring Siri to the Mac. When plugging into a power charger, Mac users will reportedly be able to summon Apple's digital assistant using the traditional "Hey, Siri" invocation. It isn't clear if Apple has any desktop-specific improvements planned. Either way, this would represent only the latest step in the growing feature convergence between Apple's mobile and desktop platforms in recent years.

There's also some speculation that Apple plans to overhaul the Photos app, which the company emphasized over its legacy iPhoto product in last year's update. Details aren't exactly clear as to whether this purported upgrade would more likely impact the desktop, mobile, or both versions of Photos.

New Apple Watch
Like iOS and OSX, it seems safe to expect Apple to preview the latest version of its smartwatch software, WatchOS, at this year's WWDC. The question that has arisen in recent months is whether Apple's Watch update will also involve new hardware.

For those who don't recall, Apple launched the Apple Watch last April, but it used last year's WWDC keynote to preview its second-generation WatchOS 2 software. The timing in doing so seems favorable. A June launch window would allow for more than a year passing since the original Apple Watch shipped, which could help sooth some potential criticism from those irked by potential new hardware upgrades.

A June debut would also allow Apple to place a greater emphasis on the expected form factor update for the company's rainmaking iPhone lineup later this fall. Many expect Apple iPhone shipments to stall in coming quarters, which will put increased pressure on Apple to deliver something more than an incremental upgrade to its smartphone lineup.

We still have several months to go before we'll know firsthand what Apple has in store for its next marquee event. Expect to see the rumor mill rev into high gear in the intervening months ahead of Apple's June WWDC.

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The short answer to this question is "No, you cannot deduct fund expense ratios on your tax return." However, while these expenses aren't directly deductible, the reasoning behind this makes sense when you understand the Internal Revenue Service's definition of an investment expense. Here are the rules on deducting investment fees and expenses and why expense ratios don't count.

Investment fees and expenses are deductible -- sometimes
According to IRS Publication 529, investment fees and expenses are among the miscellaneous deductions you can use to the extent that they exceed 2% of your adjusted gross income (AGI). They fall into the same tax category as other miscellaneous deductions such as:

• Unreimbursed employee expenses


• Tax preparation fees


• Casualty and theft losses


• Losses on deposits


• Safe deposit box rent

Basically, if you add up all of the allowable miscellaneous deductions subject to the 2% limit and then subtract 2% of your AGI, you can deduct that amount on your tax return.

So, why are expense ratios not deductible?
Take a closer look at the IRS' wording:

You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income.

This certainly includes some investment expenses. For example, if you pay a fee to your financial advisor (not a commission), it is deductible. So are subscriptions to investment newsletters and publications if they help you manage your own investments.

However, expense ratios are not included simply because they don't meet the criteria of an expense paid that produces taxable income. When you receive your income from the fund, the expense ratio is already deducted -- it's not a fee that you pay directly. In other words, if one of your funds has a 1% expense ratio and produces an 8% return on its investments this year, the value of your investment will only increase by 7%. You would only owe taxes on that 7% (if you sell), so the expense ratio wouldn't be deductible.

Another common misconception
Similarly, it's worth mentioning that brokerage commissions are also not deductible expenses -- a common myth among investors. Rather, the commissions you pay are included in your cost basis. If you pay $2,000 for a stock investment and sell it for $3,000 with a $10 commission each time, your cost basis for calculating taxable gains will actually be $2,020. So, you pay taxes on your profits excluding the commissions.

In a nutshell, expenses you directly pay for investment services or tools that help you manage your own investments are deductible, to the extent that your miscellaneous deductions exceed 2% of your AGI. However, if an investment expense is already deducted from your profits, it is not.

This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center in general or this page in particular. Your input will help us help the world invest, better! Email us at knowledgecenter@fool.com. Thanks -- and Fool on!

Source : http://www.fool.com

Source : http://www.fool.com

TrendForce expects Apple's current-gen iPhone line is struggling. Source: Apple

If you follow technology, everything Apple (NASDAQ:AAPL) does tends to be overstated. There's a cottage industry of journalists churning out headline-grabbing articles about the iPhone maker daily. As such, every move from the iPhone maker tends to be overstated. However, Apple's second-quarter earnings may be the most-important report the company has had in years.

After releasing the iPhone in 2007, the device quickly became Apple's top product. Over the last year, approximately two-thirds of Apple's top line was due to iPhone sales. iPhone unit growth significantly slowed to 0.41%. On a revenue basis, Apple grew its iPhone revenue less than 1% last quarter on a year-on-year basis, a much larger slowdown than the 36% the company produced in the prior quarter.

Source: Apple's quarterly reports. Revenue figures in millions.

Even Apple CEO Tim Cook admits the company expects unit sales to drop in the second quarter. But if the newest report from Taiwan's TrendForce is correct, iPhone shipments are not just dropping -- they're cratering.

A drop of 31%?
According to TrendForce, Apple is expected to report it shipped 42 million iPhone units in the first quarter (Apple's second fiscal quarter). For most phone vendors, 42 million high-end units would be a great year but Apple is no ordinary company. In last year's corresponding quarter Apple reported shipping 61.2 million units. TrendForce estimates Apple shipped 31% fewer units on a year-on-year basis. If correct, Apple appears well on its way to an underwhelming earnings report.

Trendforce's report is bad news all around for Apple. The market research firm reports the overall smartphone market declined 1.3% in the first quarter, which means Apple significantly underperformed the entire market. Additionally, TrendForce estimates Apple will ship 213 million units in the calendar year, down 10% from last-year's total.

On the other hand, TrendForce notes Samsung (NASDAQOTH:SSNLF) shipped more units than expected as a result of moving up the Samsung Galaxy S7 and Galaxy S7 Edge's release date to the first quarter and increased promotional activities. TrendForce upgraded its projections of Samsung shipments to 316 million units this year, which is roughly the figure it shipped last year.

What's Apple without iPhone growth?
Even though Apple has attempted to bring new products and services to the fold, the company continues to be tied to the iPhone. As the graph above shows, the iPhone has grown from 57.1% of Apple's total revenue haul two years ago to 68.1% last quarter. During this period Apple's introduced Apple Music, Apple Watch, and refreshed Macs and iPhones. However, Apple's future remains tied to the iPhone.

TrendForce's estimates appear lower than other firms. Earlier Credit Suisse analyst Kulbinder Garcha cut the firms estimates of iPhone sales from 55 million to 48 million. Piper Jaffray also lowered estimates to 55 million, down from prior predictions of 62.5 million.

This quarter will provide insight into how the iPhone will perform now that the device's hyper-growth period has passed. Apple appears undervalued on many metrics, which points to the fact many investors expect slower growth going forward. However, if Apple reports a 31% unit shipment decrease in its most important product, it could further depress the company's valuation multiples.

Source : http://www.fool.com

Source : http://www.fool.com

Broader indexes barely budged on Friday even as tech stocks fell thanks to disappointing earnings results from a few of the industry's biggest players. The Dow Jones Industrial Average (DJINDICES:^DJI) gained 22 points, or 0.1%, and the S&P 500 (SNPINDEX:^GSPC) finished flat at 2,092 points:

^DJI data by YCharts

Individual stocks making big moves included Starbucks (NASDAQ:SBUX) and Boston Beer (NYSE:SAM), which both posted quarterly results ahead of the opening bell.

Starbucks sets a new record
Starbucks' stock fell 5% even as its report showed impressive operating momentum across the board: Sales, profit margin, and earnings all set new records for the coffee titan in fiscal Q2. Overall revenue climbed 9% and earnings soared 18%, with both the top and bottom-line figures meeting consensus estimates.

As usual, comparable-store sales growth led the way. Comps were up 6% as customer traffic rose 2% and average spending improved by 4%. Sure, that marked a deceleration from the prior quarter's 8% comps growth (split evenly between traffic and average spending), but it was still Starbucks' best Q2 yet. In fact, even the slower 2% traffic growth pace translated into 16 million additional customer visits over the three-month period globally – 12 million in just the U.S. market.

Starbucks' packaged goods business, which sells K-Cups and ready-to-drink products like Double-Shot, is getting more profitable. Image Source: Starbucks.

Meanwhile, the packaged goods business continued to flex its financial muscles, booking 8% sales growth as operating margin jumped to 40% from 37% a year ago. "Starbucks record Q2 financial and operating performance...underscores the strength of the Starbucks brand and the resiliency of our global retail and CPG businesses," CEO Howard Schultz said in a press release. The company affirmed its full-year outlook as well, which suggests the stock decline was mostly a function of Starbucks' expensive 40 price-to-earnings valuation, and not a reflection of worsening growth prospects .

Boston Beer loses ground to competitors
Craft beer specialist Boston Beer (NYSE:SAM) fell 8% to set a new 52-week low after announcing surprisingly weak first-quarter results before the opening bell. Sales fell 5% as increased prices couldn't offset declining demand for its products. Meanwhile, net income was nearly cut in half, which translated into earnings per share of just $0.55 compared to $1.04 in the prior year.

Boston Beer is losing market share in its core Samuel Adams and Angry Orchard brands while its new releases, including Sam Adams Nitro White Ale and Sam Adams Rebel Grapefruit IPA, struggle to find their footing in a crowded craft beer marketplace.

Management was surprised on both of these fronts. "We believe Samuel Adams has lost share due to the increased competition and continued growth of drinker interest in variety and innovation," CEO Jim Koch said in a press release. "Our total company [growth] trends declined in the first quarter, even as the better beer and craft categories appear healthy," he continued  .

The new reality is forcing big changes at Boston Beer, including cost cutting initiatives that aim at returning the company to steady profit growth. Koch and his team plan to step up product and marketing investments to help its brands stand out more from the surge of new brewer competition. In the meantime, investors can expect 2016 revenue and earnings to come in significantly lower than management initially projected.

Source : http://www.fool.com

Source : http://www.fool.com