Face ID + Face Masks = Lost iPhone Sales

The China only Under-Display Fingerprint Sensor iPhone rumor making the rounds is interesting but the reasons offered for it, and the analysis for lost iPhone sales in China don’t really add up. There is a far simpler explanation: Face ID sucks when you wear face masks.

Lots of people in Japan and China wear face masks at different times of the year for flu season, pollen season, pollution season, etc. Whatever the reason, Face ID is simply not an option for these people. If it doesn’t work, why bother paying lots of money for a Face ID iPhone model? If Chinese manufacturers are selling under-display fingerprint sensor at a cheaper price than a Face ID iPhone, the choice for a face mask user is a no-brainer.

Whatever the outcome of the China market iPhone rumor, Apple going all in with Face ID has left money and marketshare on the table for others to grab.

Apple Pay Octopus Launching in Hong Kong with iOS 13 and Apple Maps Transit Integration

Notice: this post is from June 2019, Apple Pay Octopus launched June 2 2020, latest service launch details here


Octopus Cards Limited announced Apple Pay Octopus on July 11, 2019

Hong Kong iPhone users have waited eagerly for the ubiquitous Octopus transit card to arrive on Apple Pay ever since the first global FeliCa iPhone models were announced in September 2017. They were disappointed when Octopus Cards Limited (OCL) unveiled the first smartphone wallet version of the FeliCa based Octopus as Smart Octopus in Samsung Pay in December 2017, reportedly an exclusive deal. Needless to say, there was no mention of Apple Pay.

After Apple and OCL set things in motion in December 2018 with tests for a tentative Chinese New Year launch but then put things on hold, Hong Kong iPhone users are finally getting their wish: Octopus on Apple Pay will launch in Hong Kong with iOS 13. The iOS 13 beta contains specific Apple Pay Octopus references along with Apple Pay server side references (link now closed) which indicate that OCL is field testing with the latest beta:

Screenshot of live Apple server link JSON code June 25 10:00 am Japan local time, link was terminated by 3 pm

Shortly after the Apple Pay server code leak, OCL officially announced Apple Pay Octopus on July 11.

Suica Similarities
Octopus is based on the same FeliCa technology used for Suica and both cards are very similar. Octopus is used extensively for fast transit and contactless payments of all kinds. According to Wikipedia there are over 33 million Octopus cards in circulation as of 2018 used by 99 per cent of Hong Kong residents. The addition of the Octopus transit payment platform to Apple Pay will drive its adoption in Hong Kong far more than regular credit/debit cards can ever accomplish, as it has in Japan with Apple Pay Suica.

The digital Smart Octopus in Samsung Pay is very similar to Apple Pay Suica, with fast Express Transit-like use and performance, but the setup is a little more user friendly for inbound visitors: a new virtual Octopus card can be created directly in Wallet without using a separate app like SuicaEng or HOP App. You can transfer a plastic Octopus card, but just like Suica and HOP, the plastic card cannot be used after transfer, and the same virtual card can only be used on a single device at a time. The Apple Pay Octopus experience will be the same and Express Transit a given.

Apple Maps Transit Integration
Earlier Apple Pay Octopus reports mentioned Hong Kong Apple Maps Transit launching at the same time. Sources said that Apple Maps Hong Kong transit directions were ready to roll some time ago but was held back for a simultaneous release with Apple Pay Octopus. It makes sense for Apple to offer both services as an integrated whole as they did for the Apple Pay Suica launch.

Global NFC iPhone and Apple Watch
The Apple Pay Octopus device profile is iPhone 8 setup with Face ID or Touch ID/Apple Watch Series 3 and later. iPhone 11 Pro/11/XR/XS have the A12/A13 Bionic exclusive Express Transit with power reserve feature that gives users an additional 5 hours of Express Transit use when iPhone in low battery power reserve mode. A12/A13 Bionic powered FeliCa performance is also much improved over previous iPhone models because the Bionic Secure Enclave directly handles transactions and bypasses the iOS.

My experience with Apple Pay Suica performance on iPhone 11 Pro has been as fast and reliable as plastic Suica with none of the iOS issues of previous iPhone models, performance on iOS 12.3 was stellar and remains stellar on all versions of iOS 13. Apple Pay Octopus performance on iPhone 11 Pro/11/XR/XS will have the same advantages.

Hong Kong iPhone X users need to be aware of the iPhone X NFC hardware problem found on early production devices that causes endless issues with Apple Pay Express Transit. Apple has quietly provided replacement Revision B iPhone X devices for users who experience Express Transit gate errors in Japan and China. Hopefully Apple will offer the same courtesy to Hong Kong iPhone X users who encounter the issue.

The First Transit Platform Business Model
The Hong Kong Octopus card was the first real transit platform (contactless transit and eMoney) that had a tremendous impact on the development of Transit for London (TfL) Oyster card, Opal in Australia and other transit card fare systems around the world. It’s great for Hong Kong users that OCL is expanding the Octopus platform to include more digital wallets. I hope OCL continues to expand both the service on other digital wallets, and the business opportunities. For Apple this is an important opportunity to kick Hong Kong Apple Pay use into high gear and will certainly drive Apple Pay credit/debit card use on the recharge end far more than regular bank card Apple Pay, last but not least it’s a vindication of Apple’s global NFC “it just works” anywhere vision for Apple Pay.

9/19 UPDATE: Octopus Cards Limited CEO Sunny Cheung said that Apple Pay Octopus will not launch with iOS 13 (September 19 USA/September 20 Hong Kong), but will “start as soon as possible within the year.”

12/19 UPDATE: Apple Pay Octopus has been delayed to later in 2020.

3/15 UPDATE: Apple Pay Octopus reportedly launching with iOS 13.4 followed by Apple Pay Guangzhou, Shenzhen and Foshan China T-Union transit cards.


Related Apple Pay Octopus Coverage
Transit Cards on Mobile (3-7-2020)
Apple Pay Octopus Ides of March (2-21-2020)
Global NFC on iPhone and Android (7-16-2019)
Future of Octopus Transit Platform (6-28-2019)
Octopus Coming to Apple Pay (Initial coverage from 12-18-2018)

Deep Secrets of Apple Pay Express Transit

Apple Pay Suica on A12 Bionic iPhone XS/XR works even in the middle of a recharge

Apple Pay Suica on A12 Bionic iPhone XS/XR is different from other devices because basic FeliCa transactions bypass iOS and go directly to the Secure Enclave. You can see this in action with Express Transit power reserve, but if you observe carefully you can catch it in other ways.

I caught a glimpse today buying ice coffee at a JR station NewDays shop (supplied by Doutor btw). I was recharging Suica with Apple Pay and forgot it was still processing when I touched iPhone XS to the reader. The payment went through without a problem, the recharge completed a few seconds later.

Is this a iOS 12.4 beta thing or did A12 Bionic iPhone do this all along? I suspect it did all along and makes sense: the payment transaction bypassed iOS which was busy processing the Apple Pay recharge and wasn’t ready to post a balance update to the Secure Enclave. Prepaid and postpay processing at the same time…very interesting.

Most people think all Express Transit is the same, but Suica Express Transit prepaid is very different from EMV Express Transit postpay. Suica settles the transit bill in less than 200 milliseconds (ms) locally right at the transit gate, while EMV Express Transit leisurely (500 ms) tells the gate, ‘I am bank card XXX, put it on the bill’ for settlement later between the bank and the transit agency. For EMV there is a lot of backend system work to make that happen, and even then the user sometimes has to tap twice:

Thoughts on iOS 13 Apple Pay Express Transit

The iOS 12 release in September 2018 was a rough one for Apple Pay Suica users. It brought new problems like random gate errors, and left old problems, like unresponsive Suica Recharge and Suica balance not updating, unfixed. Everyone experienced problems, everyone except A12 Bionic iPhone XS and iPhone XR users, that is.

iOS 12 was especially tough on Revision B iPhone X Suica users. They had suffered from the iPhone X NFC Suica problem, had finally gotten a NFC error free Rev. B iPhone that worked great on iOS 11. The sudden experience of plunging back to error filled square one was a cruel twist of fate that left them confused and upset.

iOS 12.3 fixed everything for everyone, with trouble free wicked fast Apple Pay Suica performance. It is the best Apple Pay Express Transit iOS that Apple has ever delivered. However, Rev. B iPhone X owners are still worried. One owner told me, “I think that I’ll have the same problem all over again with iOS 13.”

This is a perfectly understandable concern, but I’m going to let you in on a little secret: if you are using iOS 12.3, you are already using iOS 13 Apple Pay Wallet. Apple simply has not told you yet.

iOS 12.3 Apple Pay Wallet is a whole new thing. The changes Apple made to it in iOS 12.2~iOS 12.3 are massive. Express Transit performance gains, and the new EMV Express Transit option are equally massive. Most people assume that the Wallet changes are for Apple Card, which they are, but few people understand that the changes are also for the Apple Pay Transit support of HOP, Ventra, NY MTA, and more, which Tim Cook announced along with Apple Card on March 25.

In short, Rev. B iPhone X users, and all iPhone users, have nothing to worry about anymore. If your Apple Pay Suica or Apple Pay HOP is working great on iOS 12.3, it’s going to work great on iOS 13 too.

Apple Pay Suica on Apple Watch: First Impressions

Now that iOS 12.3 is out with great Apple Pay Suica performance and no more bugs, I have a new side project: Apple Pay Suica on Apple Watch. I moved my daily Commuter Suica to Apple Watch and it’s an interesting experience. Some first impressions.

  • Apple Pay Suica performance on watchOS 5.2.1 on Apple Watch Series 4 is great, but not as great as iOS 12.3 on iPhone XS. Because A12 Bionic removes the iOS overhead for Express Cards with power reserve, Apple Pay Suica on iPhone XS/XR feels light and snappy like a plastic Suica card. I can’t wait for Express Cards with power reserve on Apple Watch.
  • Suica Recharge on Apple Watch sucks and I have discovered how wonderfully useful Suica App really is. I have a Commuter Suica on Apple Watch and a My Suica on iPhone. Both of these can be recharged and managed (with different credit cards attached to each Suica!) in Suica App. It’s super convenient and has opened my eyes to a major Apple Pay Wallet design weakness: iPhone Wallet and Watch App Wallet should just be one thing that manages all of my Wallets cards on both devices in one place. Apple Watch Wallet is great, in a pinch, but it’s a lousy UI experience for managing transit card options and Suica Recharge. Apple Pay transit prepaid card users access those card options far more than credit cards. I added a unified Wallet request for iOS 13 to the Apple Pay WWDC19 wish list.
  • Suica Reminders for low balance and commuter plan renewals are another Apple Watch weak point. They don’t exist. Suica App to the rescue again with Notification Sounds. The 3 beep Suica low balance reminder (¥1,000 or less) works everywhere and is a life saver. It’s far more attention grabbing than Apple Pay Suica Notification Center reminders on iPhone.

A true story: I was buying lunch at a family owned Daily Yamazaki convenience store. You might know the kind, a Showa style convenience store stocked with Yamazaki breads, homemade sandwiches and bento, usually run by an older couple, a store from a different era that will unfortunately disappear.

I bought a bento and paid with Apple Pay Suica on Apple Watch. The Suica 3 beep low balance reminder sound from the reader caught the attention of the owner who looked to be in his late 70s. “Suica works on that? It’s so small.” I assured him Suica worked on Apple Watch.

He smiled and said, “That’s really convenient. You’ll never lose it or have to find it when it’s on your wrist.”

It is indeed.