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.

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

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Lawmaker questions Disney's plan for wristband data

A congressman from Massachusetts raised questions Thursday about how Walt Disney Co. will use information it collects when it gives parkgoers new wristbands embedded with computer chips.

Edward J. Markey (D-Mass), who co-chairs a congressional panel on privacy, asked Walt Disney Co. Chairman and Chief Executive Robert A. Iger in a letter what information the park will collect with the so-called MagicBand and how it will be used.

"Widespread use of MagicBand bracelets by park guests could dramatically increase the personal data Disney can collect about its guests," he said, adding that he is particularly concerned at the prospects of Disney collecting information about children.

Disney announced recently that it plans to unveil this spring at Walt Disney World in Florida a wristband embedded with radio frequency identification chips. A unique code in each chip lets parkgoers pay to enter the park, check into Disney hotels and buy food and souvenirs, among other things.

Disney officials promoted the wristbands as a way to make visiting the park easier. The wristbands will let Disney use the data to customize future offerings and marketing pitches.

Disney officials say they have no plans yet to introduce the wristbands at Disneyland or Disney California Adventure Park in Anaheim.

In a three-page letter, Markey said he is "deeply concerned that Disney's proposal could potentially have a harmful impact on our children." He asked whether parkgoers will have a chance to opt out of sharing their information and, if not, whether Disney will share the data with other companies.

A spokesman for Markey said his office had not received a response from Disney on Thursday, but in a statement to The Times, the company said participation in the wristband program was optional.

"In addition, guests control whether their personal information is used for promotional purposes, and no data collected is ever used to market to children," the statement said.

If parkgoers agree to release such information it can be used for marketing, Disney officials confirmed.

hugo.martin@latimes.com

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Quitting smoking prolongs life at any age

It's never too late to quit smoking, and researchers have new data to prove it. Even at the age of 64, kicking the habit can add four years to a person's life, while quitting by age 34 can increase life expectancy by a decade, according to a study published online Wednesday by the New England Journal of Medicine.

After analyzing health data from more than 200,000 Americans, researchers calculated that current smokers were three times more likely to die during the course of the study compared with people who had never smoked. For the most part, their deaths were caused by smoking-related ailments, including heart and lung disease. Overall, their odds of surviving to age 80 were half as good as for never-smokers.

But the study, one of two large-scale surveys in the journal providing updated information on smoking and mortality, saw significant benefits for those who quit. Giving up smoking between the ages of 35 and 44 was associated with a gain of nine years of life, and those who quit between 45 and 54 lived an extra six years.

"The good news is, because the risks are so big, the benefits of quitting are quite substantial," said study leader Prabhat Jha, an epidemiologist and director of the Center for Global Health Research, based in Toronto.

While the U.S. smoking rate has declined to 19.3% among adults, there are still an estimated 45.3 million smokers in this country, according to the Centers for Disease Control and Prevention. Cigarette use is responsible for about 443,000 U.S. deaths each year, the CDC says.

Using the National Health Interview Survey, the researchers followed 113,752 women and 88,496 men in the U.S. between 1997 and 2004, categorizing them as smokers (at least 100 cigarettes within their lifetime), former smokers (no smoking within the last five years) and never-smokers. Former smokers were held to the five-year rule in order to weed out those who were already in declining health because of potentially fatal smoking-related diseases.

The researchers checked death records in 2006 and found that 8,236 of the women and 7,479 of the men had died. By comparing mortality rates among the groups, Jha's team calculated that women between the ages of 25 and 79 who were current smokers were three times more likely to die than women who never smoked. Among men in that age group, those who still smoked were 2.8 times more likely to die than never-smokers. The results were adjusted for age, education, body mass index and alcohol consumption, since smokers tended to be thinner, have less education and be more likely to drink.

The vast difference in mortality rates is partly due to the increasing health standards of the nonsmoking population, Jha said.

The second study examined mortality rates over half a century in 2.2 million people 55 and older — possibly the largest such survey undertaken, said lead author Michael Thun, recently retired from his work as a cancer epidemiologist with the American Cancer Society.

Thun's survey measured trends in death rates across three time periods: 1959 to 1965, 1982 to 1988 and 2000 to 2010.

The analysis revealed a worrying trend that also cropped up in Jha's study: Women's death rates from smoking, which had long lagged behind men's, had pulled even.

Consider lung cancer. In the early 1960s, women smokers were 2.73 times more likely to die from lung cancer than their nonsmoking counterparts; by 2010, they were 25.66 times more likely to die of the disease, Thun found. (Male smokers' relative risk of dying of lung cancer rose from 12.22 to 24.97 over the same period.)

"It's staggering," Thun said.

It's an unsurprising glass ceiling to break, doctors said. Women began smoking routinely after World War II, about two decades after men took up the habit, so it was only a matter of time until their mortality rates caught up.

The two papers did not draw distinctions between people who smoked a pack a day and those who might smoke just a few cigarettes a day, said Dr. Steven Schroeder, director of the Smoking Cessation Leadership Center at UC San Francisco. A next step in terms of study would be "to find out how much less health problems there are for smokers who smoke fewer cigarettes," he said.

Taken together, the studies point to a need for far more effective efforts to reach potential and current smokers, Schroeder added.

The message needs to get out to young and old smokers alike, he said: "There's a ray of hope. It's never too late to quit."

amina.khan@latimes.com

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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 the mobile industry was 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 the year-ago period. 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 many 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 projected 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.

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

Apple shares are down nearly 30 percent from a record high in September, in part on worries that its days of hyper growth are over and its mobile devices are no longer as popular.

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 and Edwin Chan)

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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.

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

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Well: Long Term Effects on Life Expectancy From Smoking

It is often said that smoking takes years off your life, and now a new study shows just how many: Longtime smokers can expect to lose about 10 years of life expectancy.

But amid those grim findings was some good news for former smokers. Those who quit before they turn 35 can gain most if not all of that decade back, and even those who wait until middle age to kick the habit can add about five years back to their life expectancies.

“There’s the old saw that everyone knows smoking is bad for you,” said Dr. Tim McAfee of the Centers for Disease Control and Prevention. “But this paints a much more dramatic picture of the horror of smoking. These are real people that are getting 10 years of life expectancy hacked off — and that’s just on average.”

The findings were part of research, published on Wednesday in The New England Journal of Medicine, that looked at government data on more than 200,000 Americans who were followed starting in 1997. Similar studies that were done in the 1980s and the decades prior had allowed scientists to predict the impact of smoking on mortality. But since then many population trends have changed, and it was unclear whether smokers today fared differently from smokers decades ago.

Since the 1960s, the prevalence of smoking over all has declined, falling from about 40 percent to 20 percent. Today more than half of people that ever smoked have quit, allowing researchers to compare the effects of stopping at various ages.

Modern cigarettes contain less tar and medical advances have cut the rates of death from vascular disease drastically. But have smokers benefited from these advances?

Women in the 1960s, ’70s and ’80s had lower rates of mortality from smoking than men. But it was largely unknown whether this was a biological difference or merely a matter of different habits: earlier generations of women smoked fewer cigarettes and tended to take up smoking at a later age than men.

Now that smoking habits among women today are similar to those of men, would mortality rates be the same as well?

“There was a big gap in our knowledge,” said Dr. McAfee, an author of the study and the director of the C.D.C.’s Office on Smoking and Public Health.

The new research showed that in fact women are no more protected from the consequences of smoking than men. The female smokers in the study represented the first generation of American women that generally began smoking early in life and continued the habit for decades, and the impact on life span was clear. The risk of death from smoking for these women was 50 percent higher than the risk reported for women in similar studies carried out in the 1980s.

“This sort of puts the nail in the coffin around the idea that women might somehow be different or that they suffer fewer effects of smoking,” Dr. McAfee said.

It also showed that differences between smokers and the population in general are becoming more and more stark. Over the last 20 years, advances in medicine and public health have improved life expectancy for the general public, but smokers have not benefited in the same way.

“If anything, this is accentuating the difference between being a smoker and a nonsmoker,” Dr. McAfee said.

The researchers had information about the participants’ smoking histories and other details about their health and backgrounds, including diet, alcohol consumption, education levels and weight and body fat. Using records from the National Death Index, they calculated their mortality rates over time.

People who had smoked fewer than 100 cigarettes in their lifetimes were not classified as smokers. Those who had smoked at least 100 cigarettes but had not had one within five years of the time the data was collected were classified as former smokers.

Not surprisingly, the study showed that the earlier a person quit smoking, the greater the impact. People who quit between 25 and 34 years of age gained about 10 years of life compared to those who continued to smoke. But there were benefits at many ages. People who quit between 35 and 44 gained about nine years, and those who stopped between 45 and 59 gained about four to six years of life expectancy.

From a public health perspective, those numbers are striking, particularly when juxtaposed with preventive measures like blood pressure screenings, colorectal screenings and mammography, the effects of which on life expectancy are more often viewed in terms of days or months, Dr. McAfee said.

“These things are very important, but the size of the benefit pales in comparison to what you can get from stopping smoking,” he said. “The notion that you could add 10 years to your life by something as straightforward as quitting smoking is just mind boggling.”

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Apple shares tumble after relatively unimpressive earnings report

Apple Inc. may still make products customers love, but its latest earnings report appears to have broken investors' hearts.

For the third quarter in a row, Apple reported revenue and profit that were impressive by normal standards, but short of what analysts had expected. Investors reacted harshly, driving Apple's stock price down more than 10% in after-hours trading Wednesday.

If that trend holds when trading opens Thursday, Apple will have lost almost $50 billion in market value in the blink of an eye, and its stock will have given up almost all the extraordinary gains it had made in the last year. Investors' and fund managers' belief in one of the world's most widely held stocks will be severely tested in the coming days.

More fundamentally, despite upbeat talk by Apple Chief Executive Tim Cook, the performance is unlikely to quell growing worries that Apple's remarkable run of dominance might be over.

"Overall, compared to other companies, it's impressive. But for Apple's standards, it's not great," said Patrick Moorhead of Moor Insights & Strategy. "I do think this somewhat fuels the perception that Apple is slowing down a bit.... And it's driven by the fact that some of its competitors are catching up, and in some markets have already caught up."

Apple executives did their best during an hourlong conference call with analysts to project optimism and excitement about both the last quarter and the months ahead. They noted that the company had trouble meeting demand for both iPads and Macs, and could have sold many more had they been able to build enough.

They also pointed to a growing business in China and the expansion of iTunes, which is now available in 119 countries.

"Apple is in one of the most prolific periods of innovation in its history," Cook said. "We continue to believe our fundamentals, our remarkable people, our clear and focused strategy will serve us well in the coming months and years ahead."

Cook praised the record numbers posted by Apple. For the three months that ended in December, Apple said revenue increased 18% to a record $54.5 billion. Profit also set an all-time high but was up only slightly from the year-earlier quarter, rising to $13.08 billion, or $13.81 a share, from $13.06 billion, or $13.87.

Apple said it sold a record 47.8 million iPhones last quarter, up from 37 million iPhones in the same quarter of 2011. Despite that massive figure, some analysts had hoped to see stronger demand with sales exceeding 50 million.

"Meeting expectations is not enough for Apple," said Colin Gillis of BGC Financial. "So that's a little bit of a disappointment…. International sales were a little weaker than people expected. So we'll see how that shakes out."

Last quarter saw the introduction of the iPad mini, a 7.9-inch version of Apple's popular tablet computer. The Cupertino, Calif., company said it sold a total of 22.9 million iPads in the quarter, also a record, up from 15.4 million a year earlier. The company didn't break out iPad mini numbers from its total tablet sales, but Chief Financial Officer Peter Oppenheimer told analysts that the smaller version has been a hit and that the company experienced significant backlog getting the product to store shelves. The 22% lower average selling price for Apple's tablets suggests the mini has performed well but probably cannibalized some sales of its 9.7-inch version.

Historic comparisons were challenging this year because the most recent quarter had only 13 weeks, compared with 14 weeks for the same quarter of 2011.

Like many retailers and consumer electronics companies, the quarter from October to December is typically Apple's largest because of the holiday shopping season. Last year, Apple managed to stun investors by beating its own revenue estimates by more than 25% and earnings forecast by nearly 50%. That sent the stock soaring.

But even as Apple extended its lead as the world's most valuable company, and set a record in August for most valuable company ever when not adjusted for inflation, doubts began to creep into the minds of analysts and investors.

Shares have plummeted 27% in the last four months. On Wednesday, shares rose $9.24, or 1.8%, to $514.01 during regular trading.

Apple reported strong earnings in both the third and fourth quarters last year, but the numbers missed analysts' consensus estimates. Gradually, analysts began lowering their forecasts for Apple's earnings for the current fiscal year. At the same time,

Apple experienced some uncharacteristic gaffes. The new Apple Maps app that replaced Google Maps on iOS 6 devices had reliability problems, prompting a rare apology by Apple. And the iPhone 5 that went on sale in September faced long shipping delays as Apple suppliers struggled to adapt to the new, longer screen size.

The dismissal of iOS chief Scott Forstall, a favorite of the late Apple co-founder Steve Jobs, raised eyebrows. But so did a new strategy for launching products: Whereas Apple updates to products used to be few and far between, the company has lately begun increasing the number of products as well as the introduction of new versions.

The first quarter saw one of the busiest product launch cycles in the company's history. The quarter was the first full quarter of sales for the iPhone 5, a new iPod Touch and nano, the fourth iPad, a new 13-inch Retina MacBook Pro, and, of course, the first iPad mini.

Observers have pointed to this accelerated pace as an indication that Apple is facing more competitive pressure from rivals such as Samsung Electronics Co., which is now the world's biggest seller of smartphones, with its Galaxy series of phones. The concern is that the faster upgrade cycle plus the smaller iPad mini will cut into Apple's historically high profit margins.

Such fears over lower profits have also been stoked by the debate over whether Apple plans to release a cheaper iPhone aimed at capturing market share in emerging economies and the concern that Apple has not been able to strike a deal with China's largest carrier.

Now that the first-quarter numbers have been released, analysts will be busy recalibrating their projections over the next couple of days. But the focus is also likely to shift to renewed speculation about new products that investors are hoping will drive another big run for the stock.

chris.obrien@latimes.com

andrea.chang@latimes.com

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Mahony's efforts to hide abuse are deplorable but unsurprising

Every time we learn something new about the molestation scandal in the Archdiocese of Los Angeles, it becomes more obvious why Cardinal Roger M. Mahony and his minions have fought so tenaciously to keep things under wraps.

Not to protect the privacy of victims or the rights of suspected abusers, as the church hierarchy has contended. But to hide the unconscionable deception by church leaders, who repeatedly did more to protect their own image than to help the victims of horrific crimes.

This week's revelations of deliberate efforts by Mahony and others to shield abusers from law enforcement authorities are deplorable yet entirely unsurprising. It all fits the M.O. that's was in place at least through the 1980s.

Conceal the church's dirty secrets at all costs. Don't notify the police when abuse is reported. Keep prosecutors at bay with legal challenges. Avoid reforms until public pressure mounts. And, when all else fails, have Mahony issue a carefully scripted "apology."

His latest was perhaps his most odious and offensive, with Mahony saying he didn't fully appreciate the hell victims had been put through until many years later.

You need years of reflection to realize that the rape, abuse, betrayal and psychological exploitation of children by their spiritual leaders is both devastating and unconscionable?

Now that he's seen the light, the cardinal prays that "God's grace will flood the heart and soul of each victim."

"It's worthless," retired Oxnard police officer Manuel Vega, a molestation victim, said of the Mahony apology. Vega spoke at a news conference Tuesday outside the Cathedral of Our Lady of the Angels in downtown L.A.

"A lot of people say they're sorry when they're caught," said Jim Robertson, another molestation victim. "And he's been caught. By his own writing."

Robertson was referring to a newly released document — which Mahony's lawyers fought to withhold. In it, the then-archbishop signed off on a proposal by Msgr. Thomas J. Curry, his chief on sex abuse cases, in the case of Father Michael Baker, who had admitted his molestation of boys to Mahony.

"I see a difficulty here," wrote Curry in a memo from around the time Baker was sent for treatment in 1986, "in that if he were to mention his problem with child abuse it would put the therapist in the position of having to report him … he cannot mention his past problem."

"Sounds good — please proceed!!" Mahony responded.

Excellent strategy, Cardinal!!

Curry and Mahony also corresponded about Father Michael Wempe, another admitted molester. Curry suggested they shuffle him to an out-of-state diocese, or get him "a lawyer who is also a psychiatrist," so that any files on their conversations would be "under the protection of privilege."

Father Peter Garcia, who admitted preying on undocumented children in Spanish-speaking communities, was sent not to the police, but to a New Mexico treatment facility. Mahony sent a letter to the center's director, saying he didn't want Garcia back in Los Angeles.

"I believe that if Monsignor Garcia were to reappear here within the archdiocese we might very well have some type of legal action filed in both the criminal and civil sectors," Mahony wrote.

Curry was equally concerned, writing to Mahony to say that as many as 20 adolescents or young adults Garcia had been with "in a felony first degree manner" might spot the priest in Los Angeles.

Curry, by the way, is today the archdiocese's auxiliary bishop for Santa Barbara. In a just world, he'd be relieved of his duties immediately or resign in shame. But if the church hierarchy didn't have the decency to do what was right back then, when parish children desperately needed their help, can they be expected do the right thing now?

So why, as readers often ask, aren't these men in jail?

Even if these misdeeds once met the standards for criminal prosecution, the statute of limitations has run out on most of them at this point.

Still, I was glad to hear that the D.A.'s office will review the new material and additional documents that will be released in the coming weeks, and I hope they'll consider them in light of Mahony's past statements. In one 2010 deposition, for example, Mahony said the possibility of scandal never influenced his decision not to call police. That may not meet the standard for perjury, which is difficult to prove, but it's hard to reconcile the statement with the documents released last week.

Legal consideration aside, the jury is already in when it comes to a judgment on morality. Plaintiff attorney Anthony DeMarco, for one, took issue with Mahony's awkward and self-serving apology, in which the cardinal claimed that even after getting wise to the scandal, he remained naive about the hell victims went through.

"Any right-thinking human being knows that children being masturbated and orally copulated is devastating to their lives," said DeMarco. "These are sophisticated, reasonably intelligent men who … understood how wrong this was and consciously, over and over, took the wrong path of sheltering and aiding pedophiles."

"Mahony has no conscience," said former priest Richard Sipe, who has testified in clergy abuse cases nationally. He calls the L.A. scandal the worst in the country and says he is still shocked by Mahony's commitment to putting the most self-serving spin on his misdeeds.

In his apology, Mahony said he met with about 90 of the more than 500 victims involved in the $600-million lawsuit settlement in 2007. He said he kept the names of those 90 victims on 3 by 5 index cards and prays for them.

"I would rather he lose the … card with my name on it," said Mark Gauer, who says he was molested as a child by Father Terrence Reilly while a student at Daniel Murphy High School. "When you have children being abused and take the position that you're going to protect yourself and the church, where does religion come into play? We were sacrificial lambs."

If Mahony wants to pray, Gauer said, he should pray for himself.

steve.lopez@latimes.com

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FTC study taking aim at online marketing of booze

LOS ANGELES (Reuters) – The Federal Trade Commission (FTC) plans this summer to recommend ways that the alcoholic beverage industry can better protect underage viewers from seeing its advertisements online.

Distillers, brewers and wineries pour millions of dollars into brand promotion on Twitter, Facebook and other social media, and industry critics contend they are not doing enough to prevent young consumers from receiving these messages.

“We’re doing a deep dive on how they’re using the Internet and social media,” said Janet Evans, a lawyer with the FTC, which is conducting a year-long study due to be released by early summer. “We’re focusing on underage exposure.”

She would not elaborate on any potential recommendations that might come out of the study, which began in April 2012.

The FTC is reviewing data from 14 big producers, Evans said, including Beam Inc, the maker of Jim Beam, Diageo Plc, home to Johnnie Walker, and Constellation Brands Inc, which makes Robert Mondavi and Ravenswood wines.

The FTC report “is something we take seriously and place at high priority,” said Karena Breslin, director for digital marketing at Constellation.

The FTC has made two requests for information since the study began, she said.

The regulatory agency has not said it intends to impose restrictions on liquor company social media advertising but it can make recommendations to the industry.

The FTC is empowered to file suit to ensure consumers are protected from deceptive marketing practices, Evans said, but she stressed that studies of this nature are meant to promote better self-regulation, not provide a basis for a case.

Industry executives say alcohol makers and distributors voluntarily adhere to the same industry-set standard for marketing to underage viewers on social media sites that the industry set for its ads on TV and other media. That requires that at least 71.6 percent of an audience consists of adults 21 and older.

“No one in their right mind would want to advertise to people who can’t legally buy their product,” said Frank Coleman, senior vice president for Distilled Spirits Council of the United States (DISCUS), the trade group that sets the industry’s advertising codes.

Coleman also cited recent data showing the audiences for Facebook and Twitter are skewed heavily towards viewers who are above the legal drinking age.

“According to Nielsen’s latest data, the demographic audience for Facebook is 83.5 percent 21 years and older, and for Twitter it is 85 percent,” Coleman said.

In June 2011, DISCUS revised its code upwards to 71.6 percent from 70 percent, after the FTC recommended it review the standard to better reflect U.S. Census population data.

Industry critics, including David Jernigen, director of the Center on Alcohol Marketing and Youth at Johns Hopkins University, and Sarah Mart, research director of the advocacy group Alcohol Justice, contend the industry didn’t go far enough and should raise the standard further.

Jernigen said it needs to be at least 85 percent to effectively protect youth, so there would be no more than 15 percent exposure to the underage drinking population.

“The industry says its self-regulating but it’s ineffective and social media opens up a whole new set of problems because their ads are everywhere,” said Mart.

Coleman said the group now requires members to install age-checking tools via instant messaging as a gateway to Twitter feeds and other branded Web platforms that ask the user for a birth date before admitting them.

In the first nine months of 2012, beer, wine and spirits manufacturers spent an estimated $ 35 million for paid Web display advertising, but industry executives estimate many millions more were spent on website creation, video production for platforms like Google’s YouTube and social media marketing efforts.

“We’ve significantly adjusted more money to digital for online video, websites, Facebook and Twitter content,” said Kevin George, global chief marketing officer for Jim Beam, which spends 30 percent of its media spend for online outlets, up from 10 percent in 2008, he said.

Many companies are expanding their digital staff. Wine maker Constellation hired Breslin three years ago to initiate digital marketing and now has a team of five reporting to her.

Many alcoholic beverage companies flocked to Facebook because it requires users to post their birth dates when signing up.

Last year Twitter partnered with Buddy Media to offer a screening tool that sends a direct message to fans who click on an alcoholic brand. The message sends the fan a link to a site that asks for date of birth.

Salesforce.com bought Buddy Media last June, which is now folding the platform into its marketing cloud portfolio.

Health advocates and industry critics are crying foul. “Facebook and other interactive platforms are poorly monitored and not well age-protected,” said Jernigen of Johns Hopkins University. “Anyone can say they’re 21 and click yes.”

(Reporting by Susan Zeidler; Editing by Ron Grover, Alden Bentley and Phil Berlowitz)

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Walhberg: Boy band union is strong for summer tour

NEW YORK (AP) — For Donnie Wahlberg it's not a matter of why now, rather "why not?"

The recording artist-turned-actor was referring to the news of a major tour with his New Kids on the Block, who'll be joined this summer on "The Package Tour" by 98 Degrees and Boyz II Men.

"The state of the boy band union is strong," Wahlberg joked Tuesday. "Even though technically we're not really boy bands, but we're OK with that, so we'll accept it."

The three bands sold millions of records in the 1980s and '90s and helped usher in a wave of vocal groups that continues today.

The Boston-based NKOTB formed in 1984 and amassed ten Top 20 hits. They broke up in 1994 but got back together after a 14-year hiatus. Wahlberg said he feels the break coincided with the maturation of their fan base.

"They needed time to have families and husbands and children and get jobs and live their life," Wahlberg said.

But now he sees his band's music as a complement to the fans' adult lives.

"We created an outlet for them to feel good about themselves and tap into that youthfulness that had been put to bed for a long time ... you may be 40, but the euphoria of it makes you feel 14 all over again," Wahlberg said.

The band also announced a new single, "Remix (I Like The)," which will be released Jan. 28, and a new album, "10," which is out April 2.

That music will be a bit more mature than some of the band's previous material, member Joey McIntyre said.

"It is about the decisions that a grown man makes and goes through, as opposed to singing songs like 'Popsicle,'" he said.

Nathan Morris, one of the members of Boyz II Men, known since the early 1990s for such hits as "I'll Make Love to You" and "End of the Road," said the tour is going to be all about performing.

"If the boy band thing is attached, it's wonderful, but for all of us in here, we're ready to get out there and sing and perform," he said. "That's just what we do."

Though 98 Degrees is the youngest group on the bill, it has been apart the longest, 12 years.

"So we're excited to get back together and doing what we do," member Nick Lachey said. "We feel reinvigorated by our bond and by our group, so we're very excited by that."

Wahlberg, who stars as Detective Danny Reagan on the CBS television series "Blue Bloods," said the boy bands' tour, kicking off May 31 in Uncasville, Conn., and continuing into July with more than 30 dates, is going to be "great."

"You have three acts that have lots of records, lots of fans," he said. "Fans that are anxious to sing those records and anxious to sing other bands' records, too."

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John Carucci covers entertainment for The Associated Press. Follow him at http://www.twitter.com/jcarucci_ap

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