Voice of Te'o prankster? Couric plays voicemails


NEW YORK (AP) — The person Manti Te'o says was pretending to be his online girlfriend told the Notre Dame linebacker "I love you" in voicemails that were played during his interview with Katie Couric.


Taped earlier this week and broadcast Thursday, the hour-long talk show featured three voicemails that Te'o claims were left for him last year. Te'o said they were from the person he believed to be Lennay Kekua, a woman he had fallen for online but never met face-to-face.


After the first message was played, Te'o said: "It sounds like a girl, doesn't it?"


"It does," Couric responded.


The interview was the All-American's first on camera since his tale of inspired play after the deaths of his grandmother and girlfriend on the same day in September unraveled as a bizarre hoax in an expose by Deadspin.com on Jan. 16.


Te'o's parents appeared with him for part of the interview and backed up his claim that he wasn't involved in the fabrication, saying they, too, had spoken on the phone with a person they believed to be Kekua.


Couric addressed speculation that the tale was concocted by Te'o as a way to cover up his sexual orientation. Asked if he were gay, Te'o said "no" with a laugh. "Far from it. Faaaar from that."


He also said he was "scared" and "didn't know what to do" after receiving a call on Dec. 6 — two days before the Heisman Trophy presentation — from a person who claimed to be his "dead" girlfriend.


The first voicemail, he said, was from what was supposed to be Kekua's first day of chemotherapy for leukemia.


"Hi, I am just letting you know I got here and I'm getting ready for my first session and, um, just want to call you to keep you posted. I miss you. I love you. Bye," the person said.


In the second voicemail, the person was apparently upset by someone else answering Te'o's phone.


The third voicemail was left on Sept. 11, according to Te'o, the day he believed Kekua was released from the hospital and the day before she "died."


"Hey babe, I'm just calling to say goodnight," the person on the voicemail said. "I love you. I know that you're probably doing homework or you're with the boys. ... But I just wanted to say I love you and goodnight and I'll be ok tonight. I'll do my best. Um, yeah, so get your rest and I'll talk to you tomorrow. I love you so much, hon. Sweet dreams."


Couric suggested the person who left those messages might have been Ronaiah Tuisasosopo, a 22-year-old man from California, who Te'o said has apologized to him for pulling the hoax.


"Do you think that could have been a man on the other end of the phone?" she asked.


"Well, it didn't sound like a man," Te'o said. "It sounded like a woman. If he somehow made that voice, that's incredible. That's an incredible talent to do that. Especially every single day."


Tuiasosopo has not spoken publicly since news of the hoax broke. The Associated Press has learned that a home in California where Te'o sent flowers to the Kekua family was once a residence of Tuiasosopo and has been in his family for decades.


Also on Thursday, the woman whose pictures were used in fake online accounts for Kekua said Tuiasosopo confessed to her in a 45-minute phone conversation as the scheme unraveled.


Diane O'Meara spoke with The Associated Press in a telephone interview. She said Tuiasosopo told her he'd been "stalking" her Facebook profile for five years and stealing photos.


O'Meara's attorney, Jim Artiano, said they had not decided on whether to take any legal action.


The 23-year-old O'Meara, of Long Beach, Calif., said she knew Tuiasosopo from high school and he contacted her through Facebook on Dec. 16. She said that, over the next three weeks, Tuiasosopo got in touch with her several times, attempting to get photos and video of O'Meara. She said he made up a story about wanting them to help cheer up a cousin who was injured in a car crash.


O'Meara learned her identity had been stolen on Jan. 13 when she was contacted by Deadspin.com.


The next day she got in touch with Tuiasosopo.


"When I contacted Ronaiah I got a very bizarre vibe from him, he became very nervous, he wasn't asking the questions I expected. He was asking 'Who contacted you? What did they say?'" O'Meara said.


Later that day, he confessed, O'Meara said. She said she asked Tuiasosopo why he didn't simply stop the hoax.


"He told me he wanted to end the relationship," O'Meara said. "He said he wanted to stop the relationship between Lennay and Manti, but Manti didn't want Lennay to break up with him ... He said he tried to stop the game many times."


When news of the hoax broke a few days later, O'Meara said she received a text from Tuiasosopo asking her to call him as soon as possible. O'Meara said she didn't respond.


___


Associated Press writer Tami Abdollah contributed to this report from Los Angeles.


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From “Skyfall” to “The Avengers,” how the foreign box office is trouncing domestic






LOS ANGELES (TheWrap.com) – Foreign audiences are buying what Hollywood is selling, pushing the industry to a record-breaking year at the worldwide box office.


Last year, blockbusters like “The Avengers,” “The Dark Knight Rises” and “Skyfall” deftly navigated cultural barriers everywhere from Toluca, Mexico, to Hyderabad, India, demonstrating how the film business’ future hinges on a global cultural and commercial exchange.






Internationally, ticket sales grew by 3 percent to $ 23.1 billion compared to $ 22.4 billion the previous year, with foreign territories accounting for 68 percent of the top 10 grossing films. Thanks to a 5.8 percent rise at the domestic box office from roughly $ 10.2 billion to $ 10.8 billion, according to Rentrak, it was the biggest tally in box-office history.


“We are the beneficiaries of growing markets,” Chris Aronson, head of 20th Century Fox’s domestic distribution, said. “You’re seeing big numbers coming out of places like China that keep increasing every year – and other places like India and Russia that are evolving. They’re not yet mature movie going markets, but they’re going to be fantastic.”


All of this expansion has come while much of the world, particularly Europe, has been mired by recession. Yet studio executives say that a massive expansion of IMAX and 3D-capable theaters in certain regions has cushioned the blow in softer markets like Italy and Spain.


“We’ve seen some downturn in parts of the world, but the tremendous growth we’ve experienced in other places like Russia, Latin America and now China has compensated for it,” Veronika Kwan Vandenberg, president of distribution at Warner Bros. Pictures International, said.


Of course, some of those areas present thorny regional challenges, perhaps none more so than China.


With its massive population of moviegoers, China remains a marketplace with almost boundless potential. However, its rigid bureaucracy is frequently protectionist and suspicious of foreign investment, making it an elusive profit center.


Things are improving, though. Thanks to a much touted trade agreement that was signed last year, more non-Chinese films can be distributed in the country. As a result, analysts now think that China is poised to become the second largest market for U.S. films, surpassing Japan.


By 2020, some speculate it could even eclipse the United States.


That doesn’t mean China has always welcomed the increased competition with its own domestic-made films. After authorities became concerned that the influx of U.S. blockbusters was hurting their own local productions, they scheduled “The Amazing Spider-Man” and “The Dark Knight Rises” to open against each other last summer. Industry executives say that significantly cut into their box office takes.


More recently, “Skyfall” became the latest film to run afoul of China‘s stringent censors and was forced to re-edit scenes.


It also saw its release in the country pushed back from November to January to give Chinese films a wider berth.


“It’s a very interesting, very exciting country right now, but the whole aspect of having a country that on the one hand is becoming more and more capitalist, but on the other hand still has lot of government control, just makes it extremely difficult to navigate,” said Charles Roven, producer of “The Dark Knight Rises.”


Those hurdles won’t cool Hollywood’s expansionist kick. Particularly endearing foreign markets to Hollywood is the fact that audiences overseas are more tolerant of films that bomb domestically.


“Total Recall,” for instance, cost $ 125 million to produce but only managed to earn a meager $ 58 million stateside. It mopped up some of that red ink by grossing $ 139.6 million, perhaps benefiting from audiences who were unfamiliar with the 1990 Arnold Schwarzenegger original.


However, box-office analysts caution that the days of foreign markets feasting on hamburger and mistaking it for steak may one day come to an end.


“International audiences are more forgiving, but the bar is set higher now in terms of the need to do just more than just putting special effects on screen,” said Bruce Nash, founder of the box office statistics site The Numbers. “A studio can no longer guarantee success simply by spending $ 150 million on a movie.”


Credit for the sizzling box office does not rest simply with bigger budgets, analysts and studio executives say. They contend it goes to a slate of films like “The Amazing Spider-Man” or “Skyfall” that have an aspirational quality that makes them easily accessible in some far-flung parts of the globe.


“Whether you’re growing up in Moscow, Seoul or Kansas City, you could imagine yourself being Spider-Man, and I think many guys fantasize about being James Bond,” said Rory Bruer, worldwide president of distribution at Sony Pictures. “These stories may be set in New York or England, but they don’t belong to us, they belong to the world.”


Not that all superhero films are created equal. Take “Iron Man” and “Iron Man 2″ – some box-office watchers think that the character’s narcissism and arrogance rankled Asian audiences, resulting in the films being the rare blockbusters that actually performed better domestically than abroad.


However, partner Iron Man with Captain America and Thor in “The Avengers” and the message of team-work resonates much more strongly with the same audiences that may have rejected the character in his solo ventures. The result was that $ 888.4 million of the film’s box office take came from foreign territories.


“The narrative arc transcends borders,” said Kristen Simmons, senior vice president of the worldwide motion picture group at the research firm Ipsos MediaCT.


“You have these flawed characters coming together for the common good and that is culturally appealing across the world.”


Studios are also taking pains to tailor stories so they aren’t as geographically specific – setting them in the future or in a city or countryside that could double for urban or rural environments anywhere in the world. And they’re peppering their cast with international stars, so their films will be more reflective of the ethnic makeup of their audiences.


Among the recent instances of global casting were Indian star Irfan Khan’s key roles as a scientist in “The Amazing Spider-Man” and the narrator of “Life of Pi,” as well as Wang Xueqi, the so-called Sean Connery of China‘s addition to the cast of the upcoming “Iron Man 3.”


That can do a lot to increase playability abroad and to bring in fans who remain stubbornly immune to the charms of Robert Downey Jr. or Will Smith.


Sometimes the bet works, as in the case of “Life of Pi,” which rode its international setting and cast to $ 356.3 million at the foreign box office. That far surpasses the $ 95.6 million in domestic receipts and is the major reason the costly film will make a profit despite its $ 125 million budget and esoteric storyline about the search for faith.


Other times the globe-trotting gamble doesn’t pay off. “Cloud Atlas” spanned time, space and multiple continents, but bombed both domestically and abroad. Despite its sprawling, international troop of actors, the film eked out a mere $ 71 million worldwide, which won’t cover its reported $ 100 million production costs.


Producers say that casting decisions can’t just be a case of tokenism, they have to be dramatically sound. Nor do the films have to be pandering.


“If you stay true to the concept and elements that originally attracted you to the material, you can still make it appealing on a worldwide basis,” Roven said.


“I don’t believe making a movie accessible means you have to dumb them down,” he added.


Movies News Headlines – Yahoo! News




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Penalty could keep smokers out of health overhaul


WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.


The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.


For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.


Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.


Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.


Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.


Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.


Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.


"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.


"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.


Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.


"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."


Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.


First, the law allows insurers to charge older adults up to three times as much as their youngest customers.


Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.


And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.


Here's how the math would work:


Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.


But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.


"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.


In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.


Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.


"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."


___


Online:


Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx


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Damon 'hijacks' Kimmel's ABC show


NEW YORK (AP) — Matt Damon had his revenge.


The butt of a long-running joke on ABC's "Jimmy Kimmel Live," the actor opened Thursday night's show as a kidnapper who tied Kimmel to a chair with duct tape and gagged him with his own tie.


"There's a new host in town and his initials are M.D.," Damon said. "That's right, the doctor is in."


For years, Kimmel has joked at the end of his show that he ran out of time and was unable to bring Damon on as a guest. Kimmel was the silent one Thursday, watching from the back of the stage as Damon did his job.


Damon tormented Kimmel by bringing on a succession of big-name guests. Robin Williams stopped by to finish the monologue. Ben Affleck had a walk-on role. Sheryl Crow was the bandleader and performed her new single. Nicole Kidman, Gary Oldman, Amy Adams, Reese Witherspoon and Demi Moore all crowded the talk show's couch.


"I've been waiting for this moment for a long, long time," Damon said. "This is like when I lost my virginity, except this is going to last way longer than one second."


Damon's guest hosting turn came at a key time for Kimmel. ABC earlier this month moved the show to 11:35 p.m. ET and PT after a decade of airing it a half hour later, putting him in direct competition with Jay Leno and David Letterman.


Thursday's special program aimed for the same water-cooler status as a memorably lewd short film Damon made for the show a few years ago with Kimmel's then-girlfriend, Sarah Silverman. It went viral and remains probably the best-known skit in the show's history.


To twist the knife even further, Damon brought Silverman on as his final guest Thursday night, with Kimmel looking on forlornly as she likened their five-year relationship to an unfortunate trip to a hot dog vendor.


"Is there anything you'd like to say to Jimmy?" Damon asked.


"No, I'm good," Silverman replied.


Then came the sweetest revenge of all, with Damon promising to ungag Kimmel in the show's final minutes.


"Wait," he said. "I'm sorry. We're out of time."


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NTSB: Dreamliner grounding indefinite








Boeing 787 Dreamliners will remain flightless birds for some time, it appears.

Federal investigators said Thursday they are still early in their probe of a Dreamliner battery fire in Boston Jan. 7. That fire, along with a subsequent 787 battery problem in Japan, led to groundings of Boeing's breakthrough plane model in the U.S. and elsewhere.

The revelation at a news conference Thursday afternoon that investigators still have not found a cause may suggest grounded Dreamliners, including six owned by Chicago-based United Airlines, won't be airborne anytime soon.

"We are early in our investigation. We have a lot of activity to undertake," said National Transportation Safety Board Chairman Deborah A.P. Hersman, pointing to one upcoming forensic test that alone takes a week. "There is a lot more work to be done before we can identify what caused this event."

The NTSB is the lead investigator of the battery fire in Boston aboard a Japan Airlines 787 aircraft.

Despite many aviation experts calling the 787's numerous mechanical glitches "teething pains" that all new airplane models go through, Hersman emphasized the gravity of fires on planes.

"This is an unprecedented event. We are very concerned. ... We do not expect to see fire events on board aircraft," she said. "This is a very serious air safety concern."

Nobody was hurt in the fire on the 787 in Boston or in an emergency landing in Japan after battery-related smoke and fumes on a different 787 were discovered.

The NTSB investigation will try to explain why multiple backup protections in the battery and the electronics systems aimed at preventing a fire failed, Hersman said.

"These events should not happen," she said. "As far as the design of the aircraft, there are multiple systems to protect against a battery event like this. Those systems did not work as intended. We need to understand why."

Besides fire, NTSB investigators found evidence of short circuits in the charred eight-cell, 63-pound battery and "thermal runaway," essentially uncontrolled spreading of heat. But those were symptoms, not necessarily causes, Hersman said. The batteries were made in Japan by Kyoto-based GS Yuasa Corp.

News that the NTSB investigation may be protracted -- longer than the few days some had predicted -- is bad news for Chicago-based Boeing.

Boeing last week halted deliveries of new 787s, until the FAA lifts the flight ban. However, Dreamliner production continues. Boeing is working to double monthly output in 2013 to help shrink a backlog of about 800 orders that swelled during multiple delays to the jet's debut, which came in late 2011.

Deliveries are important because that's when planemakers get large bulk payments on the purchase price of a jet. The 787's list price starts at about $207 million, but airlines typically buy at discount.

In a statement Thursday, Boeing said it is assisting in multiple investigations in the U.S. and Japan.

"The company has formed teams consisting of hundreds of engineering and technical experts who are working around the clock with the sole focus of resolving the issue and returning the 787 fleet to flight status," Boeing said.

Earlier Thursday, Boeing received a vote of confidence from United Airlines, the only U.S. airline  to own the new jet, during an earnings call with United Continental Holdings CEO Jeff Smisek. "History teaches us that all new aircraft types have issues, and the 787 is no different," Smisek said. "We continue to have confidence in the aircraft and in Boeing's ability to fix the issues, just as they have done on every other new aircraft model they've produced."

United had been using a Dreamliners on a route between Chicago and Houston. After the grounding, the route has been flown with a different aircraft.

Dreamliners in the U.S., Japan, Europe and elsewhere have been grounded since Jan. 16, after a 787 operated by All Nippon Airways made an emergency landing in Japan because battery-related smoke and fumes. That followed the fire in Boston that the NTSB is investigating.

The Dreamliner grounding was the first since the McDonnell Douglas DC-10 had its airworthiness certificate suspended following a deadly crash in Chicago in 1979.

Boeing has sold about 850 of its new aircraft, with 50 delivered to date. The plane is half made of a composite material, leading some to call it a "plastic plane." It makes greater use of electronics, powered by batteries, rather than heavy hydraulics. That makes the plane lighter and helps improve fuel efficiency, which is a big deal for airlines.

Boeing has said in statements that it is confident the 787 is safe, and it stands by the plane's integrity. It is cooperating with investigations in the U.S. and abroad.

Because of the groundings, LOT Polish Airlines scrapped its inaugural flight from O'Hare International Airport to Warsaw Jan. 16, just hours after the FAA grounded the plane. LOT officials said they would seek compensation from Boeing for having its two Dreamliners grounded. It will take delivery of the three more due in March only if the problems are resolved, the airline said.

After Thursday, it's clear nobody knows just when that might be.

"There is a tremendous amount of work going on all around the world," Hersman said. "We actually have two shifts of employees both here and in Japan who really are working around the clock to try to solve this."

gkarp@tribune.com






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Bulls rally to beat Pistons 85-82









As the United Center rocked and the Bulls celebrated Marco Belinelli's go-ahead, three-point play with 7.5 seconds left, Joakim Noah remained down in the photographer's pit along the baseline, cameras and cheerleaders all around him.


"I didn't really see the play," Noah said. "I had the cheerleaders' pom-poms in my face."


His teammates saw it, which is why they were celebrating the shot that sealed the Bulls' stirring 85-82 comeback over the Pistons, their 17th straight victory in this series. It marked the second time in just more than a month the Bulls erased a 17-point deficit against the Pistons to prevail.








And yet Noah, who had authored, really, the play of the season — one that defines the heart and hustle that has the Derrick Rose-less Bulls on pace for 50 victories now that the midway point has been reached — remained down.


"We were over there celebrating and he was still knocked over by the cheerleaders," said Nate Robinson, who kick-started the rally with nine straight points early in the fourth. "We were like, 'Oh, yeah, we have to go help him up.' But that play shows how hard Jo works. He never gives up."


Noah smiled, clearly relishing the opportunity to tweak his teammates.


"Damn, it took forever, right?" he said of the delay.


All's well that ends well, right?


But make sure to find a replay of Noah's hustle, which came off Belinelli's bricked jumper. As Noah tumbled into cameras and cheerleaders, Belinelli cut to the basket, grabbed the fruit of Noah's effort and laid it in as Rodney Stuckey fouled him.


"I scored, but the credit goes to Jo," said Belinelli, who scored his second game-winner in four games.


Coach Tom Thibodeau just shook his head.


"Quite frankly, I don't know he got to it," Thibodeau said. "It was an incredible play."


The Bulls then watched tying 3-point attempts from Tayshuan Prince and Stuckey rim out as time expired.


"I stayed with the play," Noah said. "The basketball gods were on our side. It's not really a great play because if Detroit gets it, it's a four-on-five fast break the other side. Fortunately, we got it. "


Robinson's boundless energy can delve into extracurricular emotion, but there's no denying he jump-started the comeback. Robinson keyed a 12-2 run to open the fourth with nine straight points and a dish for a fast-break dunk from Butler, who tied his career-highs with 18 points and nine rebounds.


Butler, starting again for the injured Luol Deng, played all but 91 seconds and overcame a 1-for-8 start. He also hit a huge 3-pointer — the Bulls missed their first 10 and made just 3 of 14 — for an 82-80 lead before Jason Maxiell tied the game with 29.4 seconds left off a defensive breakdown.


"Jimmy just kept working the game," Thibodeau said. "He never got down. He kept battling and battling."


Robinson finished with 11 points.


"That's Nate. He made a lot of big-time plays for us," Thibodeau said. "He's not afraid. I respect that about him.


"The group that started the fourth quarter played with energy, got some stops and got us going.


Noah played 45 minutes with 10 points and 18 rebounds.


"We just kept saying, 'We're going to rally together,'" Butler said. "That's what this team is all about."


kcjohnson@tribune.com


Twitter @kcjhoop





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Apple's iPhone disappointment fans doubt on growth


SAN FRANCISCO (Reuters) - Apple Inc missed Wall Street's revenue forecast for the third straight quarter after iPhone sales came in below expectations, fanning fears that its dominance of consumer electronics is slipping.


Shares of the world's largest tech company fell 10 percent to $463 in after-hours trade, wiping out some $50 billion of its market value - nearly equivalent to that of Hewlett-Packard and Dell combined.


On Wednesday, Apple said it shipped a record 47.8 million iPhones in the December quarter, up 29 percent from a year earlier. But that lagged the 50 million that analysts on average had projected.


Expectations heading into the results had been subdued by news of possible production cutbacks by some component suppliers in Asia, triggering fears that demand for the iPhone, which accounts for half of Apple's revenue, and the iPad could be slowing.


But some investors clung to hopes for a repeat of years of historical outperformance, analysts said.


"It's going to call into question Apple's dominance in the space. It's still one of the strong players, the others being Samsung and Google. It's still a two-horse race, but Android continues to grow rapidly," said Sterne Agee analyst Shaw Wu.


"If you step back a bit, it's clear they shipped a lot of phones. But the problem is the high expectations that investors have. Apple's conservative guidance highlights the concerns over production cuts coming out of Asia recently."


Apple is forecasting revenue of $41 billion to $43 billion in the current, second fiscal quarter, lagging the average Wall Street forecast of more than $45 billion.


Fiscal first-quarter revenue rose 18 percent to $54.5 billion, below the average analyst estimate of $54.73 billion, though earnings per share of $13.81 beat the Street forecast of $13.47, according to Thomson Reuters I/B/E/S.


Apple also undershot revenue targets in the previous two quarters, and these results will prompt more questions on what Apple has in its product pipeline, and what it can do to attract new sales and maintain its growth trajectory, analysts said.


Net income of $13.07 billion was virtually flat with $13.06 billion a year earlier on higher manufacturing costs. The year-ago quarter also had an extra week compared to this year.


Gross margins consequently slid to 38.6 percent, from 44.7 percent previously.


"You can't just keep rolling out iPhones and iPads and think that everybody needs a new one," said Jeffrey Gundlach, who runs DoubleLine Capital LP, the $53 billion bond firm. "The mini? What is that all about? It is a slightly smaller iPad — so what? So that is our new definition of innovation?"


"There are plenty of competitors like Samsung and other legitimate competitors like them," added Gundlach, one of the highest-profile Apple bears. He maintains a $425 price target.


Taking into account the drop in shares in Wednesday's after-hours trading, Apple's stock is now down 34 percent from its September record high and the company has lost about $227 billion in market value.


Shares of several of Apple's suppliers crumbled. Chip suppliers Skyworks and Cirrus Logic both fell more than 6 percent. Qualcomm Inc slipped 1.8 percent.


CHINA IS NEXT BIG GROWTH DRIVER


Intense competition from Samsung's cheaper phones - powered by Google's Android software - and signs that the premium smartphone market may be close to saturation in developed markets have also caused a lot of investor anxiety.


Meanwhile, sales of the iPad came in at 22.9 million in the fiscal first quarter, roughly in line with forecasts.


On the brighter side, Chief Financial Officer Peter Oppenheimer told Reuters that iPhone sales more than doubled in greater China - a region that Apple Chief Executive Tim Cook has vowed to focus on as its next big growth driver.


The company will begin detailing results from that country going forward. Revenue from the region totaled $7.3 billion, up 60 percent from the year-ago December quarter.


"These results were OK, but they definitely raised a few questions," said Shannon Cross, analyst with Cross Research. "Gross margin trajectory looks fine so that's a positive and cash continues to grow. But I think investors are going to want to know what Apple plans to do with growing cash balance."


"And other questions are going to be around innovation and where the next products are coming from and what does Tim Cook see in the next 12 to 18 months."


ADDRESSING PRODUCTION RUMORS


In an unusual move for Apple, which typically does not respond to speculation, Cook addressed the production cutback rumors at length on the conference call and questioned the accuracy of rumors about its plans.


Media reports earlier this month said the company is slashing orders for iPhone 5 and iPad screens and other components from its Asian suppliers.


"Even if a particular data point were factual, it would be impossible to accurately interpret the data point as to what it meant for our overall business, because the supply chain is very complex," he said, adding that Apple has multiple sources for components.


"Yields might vary. Supplier performance can vary. The beginning inventory positions can vary. There's just an inordinately long list of things that would make any single data point not a great proxy for what's going on," he said.


Apple's initial iPhone and iPad mini sales were hurt by supply constraints, but Cook expects supply to balance demand for the iPad mini this quarter. He also acknowledged that iPad was cannibalizing its high-margin Macintosh computers, but said it was a huge opportunity for the company.


"On iPad in particular, we have the mother of all opportunities here, because the Windows market is much, much larger than the Mac market is," he said. "And I think it is clear that it's already cannibalizing some."


In another departure from tradition, Apple intends to tweak the way it both reports results and publishes forecasts.


Apart from breaking out results from China, the company also will no longer provide a single revenue or gross margin outlook. From Wednesday, it began providing the range it expects to hit, rather than the often-ludicrously conservative estimates that Apple was once notorious for.


The new policy took many by surprise.


"Before people could always ignore the guidance," said Dan Niles, Chief Investment Officer of AlphaOne Capital Partners, LLC. "Apple is telling investors that they need to pay attention to the guidance and you can't ignore it, which is basically what we all did in the past."


(Additional reporting by Alistair Barr and Alexei Oreskovic in San Francisco and Jennifer Ablan in New York; Editing by Bernard Orr, Edwin Chan and Ryan Woo)



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No. 1 Duke routed by No. 25 Miami 90-63


CORAL GABLES, Fla. (AP) — With a steady din coming from the sea of orange behind the visitors' basket, No. 1 Duke had a tough time making a shot.


The Blue Devils went more than 8 minutes without a field goal in the first half Wednesday night, and a sellout became a blowout for No. 25 Miami, which delighted a boisterous crowd with a 90-63 victory.


The defeat was the third-worst ever for a No. 1 team. The last time Duke lost a regular-season game by a bigger margin was in January 1984.


"It wasn't demoralizing; they played better," Blue Devils guard Rasheed Sulaimon said. "I believe we have them on the schedule again."


"We expected them to be terrific, and we have to match terrific, and then you have a terrific game," Duke coach Mike Krzyzewski said. "What you had was a terrific win for them, but not a terrific game. We didn't hold our end of the bargain."


Miami (14-3, 5-0 Atlantic Coast Conference) beat a No. 1 team for the first time, taking control with a stunning 25-1 run midway through the opening half. The Blue Devils missed 13 consecutive shots despite numerous good looks, while four Hurricanes hit 3-pointers during the run that transformed a 14-13 deficit into a 38-15 lead.


Duke (16-2, 3-2) fell to 0-2 when playing on an opponent's court. The Blue Devils' other loss came at North Carolina State, a defeat that cost them the No. 1 ranking.


They regained the top spot this week but seemed rattled by the capacity crowd, only the 10th in 10 years at Miami's on-campus arena. Students began lining up for seats outside the arena almost 24 hours before tipoff, a rarity for the attendance-challenged Hurricanes.


"I don't know how you can sit outside for a basketball game for that long," Miami guard Durand Scott said. "That made me want to win for them even more."


The Hurricanes, who are alone atop the league standings, won their sixth consecutive game. They beat Duke for the second straight time — but only the fourth time in the 19-game series.


Miami had been 0-6 against No. 1 teams. Coach Jim Larranaga also beat a No. 1 team for the first time.


"This is a great memory," Larranaga said.


Scott scored a season-high 25 points for the Hurricanes, and Kenny Kadji added a season-high 22. Shane Larkin had 18 points, 10 rebounds and five assists, and Durham, N.C. native Julian Gamble had 10 rebounds and four blocked shots.


Miami senior center Reggie Johnson came off the bench in his first action since being sidelined with a broken left thumb Dec. 18. He had two points and five rebounds in 16 minutes.


The Hurricanes, ranked this week for the first time in three years, improved to 8-0 at home.


Seth Curry, Tyler Thornton and Quinn Cook went a combined 1 for 29 for the Blue Devils, who shot a season-low 30 percent. Sulaimon led them with 16 points.


Duke went 4 for 23 from 3-point range, while Miami went 9 for 19 and shot 57 percent overall.


"Especially in the first couple of minutes, we got a lot of great shots," Blue Devils forward Mason Plumlee said. "You're going to miss some, but you have to keep shooting. The biggest mistake you can make is questioning your shot because you're missing open shots."


Kadji made two 3s during the Hurricanes' first-half spurt, then capped it with a three-point play. Duke shot 22 percent in the first half, including two for 11 on 3-pointers, and trailed 42-19 at halftime.


There was no letup by the Hurricanes to start the second half. They scored the first seven points for a shocking 49-19 lead, and punctuated the drubbing with five dunks in the final 10 minutes.


"Some teams come out in the second half flat and think they have the game won," Larkin said, "but we stayed with it with the same energy in the second half. We played great the whole game."


A Duke mistake — one in a long series — early in the second half had Krzyzewski red-faced and on the court, screaming at his team. But he couldn't inspire a turnaround.


"Over-rated," fans chanted with 3 minutes left. When the game ended, they poured onto the court and mobbed their team.


"The crowd I'm sure helped them some," Krzyzewski said. "But they didn't need much help."


Back in North Carolina, fans of the Tar Heels savored the loss by their rivals. When the final score of the Duke game was posted on the video board at the North Carolina-Georgia Tech game, students chanted, "Go to hell, Duke!"


___


AP Sports Writer Joedy McCreary in Chapel Hill, N.C., contributed to this report.


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Artist Christo takes small steps on Colo. project






DENVER (AP) — Construction of the proposed “Over the River” project in Colorado is on hold pending legal challenges, but artist Christo said Wednesday his team is doing other work so he can one day suspend nearly six miles worth of silvery fabric in sections over the Arkansas River.


Railroad tracks are being cleared along the project route that traces U.S. 50 between Canon City and Salida, and work is beginning to mitigate impacts to bighorn sheep.






Christo is also preparing for his upcoming exhibit in Oberhausen in Germany of “Big Air Package,” a 295-foot air-filled fabric bubble that will help raise funds for Over the River, which has cost $ 13 million so far.


As envisioned by Christo and his late wife, Jeanne-Claude, Over the River would be displayed for two weeks in late summer. The earliest it could be displayed is August 2016, but even that timeline may be unlikely.


The Bureau of Land Management‘s approval of a permit for it is being appealed, and a group called Rags Over the Arkansas River has filed lawsuits challenging permit approvals by the BLM and Colorado State Parks.


Opponents contend the project poses environmental, safety, traffic and economic risks and will require more than two years of industrial-scale construction work. Christo‘s team has said it plans dozens of measures to mitigate impacts.


Christo and Jeanne-Claude‘s massive projects have survived delays before.


“I don’t consider it a pause,” Christo said. “It’s part of the dynamics of the project.”


During the work on Over the River, he also is actively working on The Mastaba, a giant sculpture of 410,000 barrels planned for Abu Dhabi that he conceived in 1977. Because he is 77, Christo said he is trying to complete both projects simultaneously rather than focusing on one at a time.


Christo was in Denver for an exhibit Wednesday at Metropolitan State University of Denver’s Center for Visual Art of two sketches he donated to Colorado.


___


Find Catherine Tsai on Twitter at http://www.twitter.com/ctsai_denver


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Women have caught up to men on lung cancer risk


Smoke like a man, die like a man.


U.S. women who smoke today have a much greater risk of dying from lung cancer than they did decades ago, partly because they are starting younger and smoking more — that is, they are lighting up like men, new research shows.


Women also have caught up with men in their risk of dying from smoking-related illnesses. Lung cancer risk leveled off in the 1980s for men but is still rising for women.


"It's a massive failure in prevention," said one study leader, Dr. Michael Thun of the American Cancer Society. And it's likely to repeat itself in places like China and Indonesia where smoking is growing, he said. About 1.3 billion people worldwide smoke.


The research is in Thursday's New England Journal of Medicine. It is one of the most comprehensive looks ever at long-term trends in the effects of smoking and includes the first generation of U.S. women who started early in life and continued for decades, long enough for health effects to show up.


The U.S. has more than 35 million smokers — about 20 percent of men and 18 percent of women. The percentage of people who smoke is far lower than it used to be; rates peaked around 1960 in men and two decades later in women.


Researchers wanted to know if smoking is still as deadly as it was in the 1980s, given that cigarettes have changed (less tar), many smokers have quit, and treatments for many smoking-related diseases have improved.


They also wanted to know more about smoking and women. The famous surgeon general's report in 1964 said smoking could cause lung cancer in men, but evidence was lacking in women at the time since relatively few of them had smoked long enough.


One study, led by Dr. Prabhat Jha of the Center for Global Health Research in Toronto, looked at about 217,000 Americans in federal health surveys between 1997 and 2004.


A second study, led by Thun, tracked smoking-related deaths through three periods — 1959-65, 1982-88 and 2000-10 — using seven large population health surveys covering more than 2.2 million people.


Among the findings:


— The risk of dying of lung cancer was more than 25 times higher for female smokers in recent years than for women who never smoked. In the 1960s, it was only three times higher. One reason: After World War II, women started taking up the habit at a younger age and began smoking more.


—A person who never smoked was about twice as likely as a current smoker to live to age 80. For women, the chances of surviving that long were 70 percent for those who never smoked and 38 percent for smokers. In men, the numbers were 61 percent and 26 percent.


—Smokers in the U.S. are three times more likely to die between ages 25 and 79 than non-smokers are. About 60 percent of those deaths are attributable to smoking.


—Women are far less likely to quit smoking than men are. Among people 65 to 69, the ratio of former to current smokers is 4-to-1 for men and 2-to-1 for women.


—Smoking shaves more than 10 years off the average life span, but quitting at any age buys time. Quitting by age 40 avoids nearly all the excess risk of death from smoking. Men and women who quit when they were 25 to 34 years old gained 10 years; stopping at ages 35 to 44 gained 9 years; at ages 45 to 54, six years; at ages 55 to 64, four years.


—The risk of dying from other lung diseases such as emphysema and chronic bronchitis is rising in men and women, and the rise in men is a surprise because their lung cancer risk leveled off in 1980s.


Changes in cigarettes since the 1960s are a "plausible explanation" for the rise in non-cancer lung deaths, researchers write. Most smokers switched to cigarettes that were lower in tar and nicotine as measured by tests with machines, "but smokers inhaled more deeply to get the nicotine they were used to," Thun said. Deeper inhalation is consistent with the kind of lung damage seen in the illnesses that are rising, he said.


Scientists have made scant progress against lung cancer compared with other forms of the disease, and it remains the leading cause of cancer deaths worldwide. More than 160,000 people die of it in the U.S. each year.


The federal government, the Canadian Institutes of Health Research, the Bill and Melinda Gates Foundation, the cancer society and several universities paid for the new studies. Thun testified against tobacco companies in class-action lawsuits challenging the supposed benefits of cigarettes with reduced tar and nicotine, but he donated his payment to the cancer society.


Smoking needs more attention as a health hazard, Dr. Steven A. Schroeder of the University of California, San Francisco, wrote in a commentary in the journal.


"More women die of lung cancer than of breast cancer. But there is no 'race for the cure' for lung cancer, no brown ribbon" or high-profile advocacy groups for lung cancer, he wrote.


Kathy DeJoseph, 62, of suburban Atlanta, finally quit smoking after 40 years — to qualify for lung cancer surgery last year.


"I tried everything that came along, I just never could do it," even while having chemotherapy, she said.


It's a powerful addiction, she said: "I still every day have to resist wanting to go buy a pack."


___


Online:


American Cancer Society: http://www.cancer.org


National Cancer Institute: http://www.cancer.gov/cancertopics/tobacco/smoking and http://www.cancer.gov/cancertopics/types/lung


Medical journal: http://www.nejm.org


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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