Handoff
Handoff is a major element of Yosemite’s "integration" theme. With it, Apple is promising to transparently, seamlessly move whatever activity you're doing to whatever device you want to continue doing it with. It's a person-centric choice and a bold one.
In order for Handoff to work you have to be logged into the same Apple ID on you iPhone or iPad as you are on your Mac. That's how Handoff knows those devices all belong to the same person — you. Since your Apple ID is also used for iCloud backup and restore, iMessage and FaceTime, iCloud email and perhaps even your iTunes purchases, it's a safe, reliable way to make sure you're really you and your devices are really your devices.
Being logged into the same Apple ID also means that, if you have documents stored on iCloud, they're available on all your devices already, so Handoff doesn't have to waste time and power pushing files around. It only has to push your current activity. (More on that later.)
Handoff also requires that your iPhone or iPad, and Mac be within close proximity to each other. Devices are automatically paired via Bluetooth LE (Bluetooth 4.0 Low Energy) when they come into range and activities are made available for Handoff for as long as they stay within that range.
Apple promises transparently, seamlessly move whatever you're doing to whatever device you want to continue doing it with
Enforcing proximity is a good idea and one in keeping with Handoff's person-centric approach. It prevents private websites you're visiting, emails or messages you're composing, or documents you're working on from accidentally getting pulled over to a machine that's logged into your account, but at another location where it's not within your physical control. For example, if you're working at home, you don't need your stuff popping up on a device at school, or if you're at the coffee shop, you don't need it popping up on your work computer.
Proximity allows for both convenience and privacy, the best of both worlds.
Handoff will work Mail, Safari, Pages, Numbers, Keynote, Maps, Messages, Reminders, Calendar, and Contacts.
That means you can start composing or reading an email or web site, editing a document, spreadsheet or keynote, finding a location, typing a text, picking a reminder, entering an appointment, or looking up an address on your Mac and continue or finish it on your iPhone or iPad, or vice versa.
Apple hasn't yet announced any Handoff functionality for media, for example starting an iTunes playlist on your Mac and continuing it with the iTunes Music app, or starting a game on your iPhone and continuing mid-level on your iPad. Nor have they announced any Handoff features that would let you, for example, push a movie from the Apple TV to the iPad if you wanted to change rooms. (The reverse of AirPlay, which has to start on an iPhone, iPad, or Mac.)
It's still early days, however, and every new feature has to start somewhere.
Apple has provided application programming interfaces (API) to developers so that third party Mac apps can also take advantage of Handoff. Developers need to specify which discreet actions are available to Handoff — precise activities like composing a tweet or reading an RSS item — and the apps involved all have to be owned by the same developer Team ID. That makes things secure for customers, so we don't have to worry about one app trying to intercept activity from another.
Handoff-capable apps also have to be made available through the Mac App Store or signed by a registered developer. Again, that allows for security, and even a degree of flexibility.
Handoff doesn't only work between apps but also between websites and apps. For example, if you're reading Facebook.com on Safari on your Mac, and then pick up your iPhone to leave the room — assuming the developers have implemented it — the Facebook app will show up to accept the handoff.
Apple has provided APIs so that developers can prove they own their websites and apps, and that they're all related to each other. That secures both endpoints of the transaction.
To move to the browser, Handoff sends a URL (universal resource locator) from the originating device to the device where you want to resume your activity. Open the browser, load the URL, and you're right where you left off.
To move to a native app, activities specified on the website are sent over to the appropriate location in the associated app. Open the Facebook app, load the page you were looking at, and you're likewise where you left off.
Apple also says developers can bi-directionally stream between two open instances of the same app on two different devices. That allows for continuous interaction, including read and write, between the original and current device. For example, so both devices to be used to work on the same activity at the same time.
How developers — and Apple — will make use of such streams remains to be seen...

Handoff is based on actions. When an app or browser is launched, brought back to the foreground, or tabs are switched, Handoff identifies the current actions you're doing — composing an email, reading a particular web page, editing a Pages document, etc. — and starts to broadcast that activity.
Other devices within proximity identify the activity and call up the appropriate icon for it.
On the iPhone or iPad the icon is placed either on the bottom left of the Lock screen or, if the device is unlocked, to the left of the Home screen in the multitasking card interface (the one you get to by double clicking the Home button.)
On the Mac the icon is placed either to the left of the Dock or to the right of the application switcher (the one you get by hitting CMD + Tab.)
Once the icon is hit, Handoff will request the activity from the originating device. If you're using Documents in the Cloud, only the state needs to be transferred. If you're on the web, only the URL. Otherwise, whatever you're working on will get sent across. Once any necessary data is passed (presumably over direct Wi-Fi connection), you're taken to the app and your activity is resumed right where you left off.
There's no convergence of interface or single truth kept on a server. The Mac is the Mac, iOS is iOS. They integrate together so that your activities can go from device to device transparently, seamlessly.
For example, if you were composing an email on your iPhone and you walked within range of your Mac, the Mail.app icon would appear in a new segment to the left of your OS X Dock. Click on it and you'd be in OS X Mail, in the compose window, with the same email open and ready for you to finish, right where you left off.
If you were working on a Keynote on your Mac and you picked up your iPad, you'd see the Keynote app icon to the bottom left of your Lock screen. Hit it and you'd be taken to the Keynote app on the iPad, the same document open to the same slide you'd just been working on.
Handoff promises a fundamentally different approach to computing than Microsoft's "Windows Everywhere" or Google's "everything in the cloud". With Handoff, there's no convergence of interface or single truth kept on a server. Apple is keeping the Mac the Mac, and the iPhone and iPad the iPhone and iPad. They simply all integrate together so that your activities can go from device to device transparently, seamlessly, wherever you go.
AirDrop
AirDrop started off on OS X Lion back in 2011. It used Bonjour (zero config) and personal area networking (PAN) to discover and transfer files between Macs, and eventually made its way from the Finder to the Share menu and Open/Save dialogs. Where it didn't find its way was on to iOS.
At least not until iOS 7.
When AirDrop did come to iOS, however, it came in name only. The protocol itself was significantly different. With no Finder in iOS, AirDrop existed only in the Share sheet. Instead of Bonjour and PAN, it used Bluetooth LE and direct Wi-Fi to transfer data. It was an incredibly secure implementation but it wasn't compatible with the older version on OS X.
At least not until iOS 8 and OS X Yosemite.
OS X AirDrop, like iOS before it, now uses Bluetooth LE for discovery and direct Wi-Fi for transfer. That's really the best of both worlds, as you get the low-energy savings of BT LE for the connection and the race-to-sleep efficiency of Wi-Fi for the transfer. (Apple hasn't released any security information yet, but if they've maintained the security model it will be similarly terrific.)
Between iOS devices nothing changes, of course.
Between iPhone or iPad and Mac, when the iOS device is unlocked it'll show up as an AirDrop target in the OS X Finder and the Save option in the menu. OS X devices show up just like iOS devices on the iPhone or iPad.
Between Macs it works similar to how it did in the past but you have an optional checkbox to "AirDrop with Older Macs".
This means that no matter where you have a piece of data, be it a photo, contact, or anything else shareable at all, you can move it directly between all your Apple devices with just a couple taps or clicks.
Instant Hotspot
Tethering from an iPhone or iPad cellular to a Mac or iPad Wi-Fi has always been a bit of a pain. Some of that has been carriers and their cockamamie tethering plans. But some of it has always been the process which, at the best of times, required a password to be entered, and at the worst required off/on toggles or reboots to get it working consistently.
No longer.
Now your Mac or iPad Wi-Fi can instantly connect to your iPhone or iPad cellular and you can be up and using the internet in no time.
Instant Tethering works when you’re logged into both your iPhone or iPad + Cellular and your Mac with the same Apple ID. Then, your iPhone or iPad + Cellular will simply appear as an option in your available Wi-Fi network connections list, distinguished with Apple's linked-ring tethering icon. Connection type (e.g. LTE) and battery level will also be displayed on the Mac.
So, regardless of whether your iPhone or iPad cellular is sitting right in front of you, or is across the room in a bag, there's no password to enter, no toggles to flip, no devices to reboot. Just tap/click, connect, surf.
Again, AirDrop and tethering aren't new features they're new implementations of pre-existing features. They may lack the impact of Handoff or call/SMS/MMS Continuity, but they solve really usability problems for real people. Apple is sometimes accused of spotlighting a feature one year only to forget about it the next. By looping AirDrop and tethering into Continuity Apple not only brings them back into the spotlight but makes them better than ever before. Hopefully this is just the beginning of that trend.
Call relay
iPhones have cellular radios that connect to the carrier voice networks. That’s what lets the take and make calls. Macs can make calls using Voice Over IP (VoIP) software like FaceTime or Skype, but they haven’t been able to make traditional phone calls. At least not until Yosemite.
Apple has some experience transiting calls between services. For example, you could always switch from a carrier voice call to FaceTime, even mid-call, without missing a beat. The same sort of savvy is now being applied between carrier voice calls and the Mac, but instead of just switching, you’re able to answer and initiate calls as well.
So, if your iPhone is across the room and you hear it ring, you don’t have to get up and sprint for it. As long as you’re logged into the same Apple ID and on the same Wi-Fi network, you can take it right on your Mac.
Your Apple ID is used to ensure that your phone calls can only ever be made or taken on your devices. The Wi-Fi network not only allows for the transport, but makes it highly likely your devices are in your possession, or at least in your vicinity, which likewise keeps your calls personal and secure.
When your iPhone rings, Continuity can show you the name and number of whose calling on your iPad or Mac. It works just like the call display you're used to (provided you have call display service from your carrier and the identity information is available). Also, just like your iPhone, if the caller is in your contacts you'll see your contact picture for that caller, making them instantly recognizable even at a glance.
And just like on your iPhone, you can swipe the incoming call notification on your iPad, or click it on your Mac, to answer. Of course, if you're giving some big fancy keynote or are likewise busy and can't answer, you can choose to ignore the call, or even to respond with an iMessage or SMS message to let the caller know you'll get back to them ASAP. (Presumably, if you ignore the call on your iPad or Mac, it will get sent to voicemail, if available, on your iPhone.)
Making calls from your iPad or Mac is just as easy as receiving them. Any time you have a phone number in the built-in Contacts app, Calendar app, or Safari web browser, tapping or clicking on it will give you the option to call. Choose it and your call will be placed using the Wi-Fi connection to your iPhone, and your iPhone's connection to the telephone network.
Once a call is connected you'll see a time indicator — useful if you're counting local or long distance minutes — and you'll be told the call is "using your iPhone". Right below that is a sound wave just to add some visual flare.
You'll also get additional options, similar to what you get now on the iPhone. You can switch to a FaceTime video call, in which case the traditional telephone call is ended and the FaceTime call seamlessly connected in its place. You can also choose to mute the call so you can speak freely without the person on the other end hearing what you're saying, and end the call when you're done.
Apple hasn't shown off relay for conference calls, however, starting off simply and adding functionality over time is a cornerstone of their approach. The point being, this is a beginning, not an ending.
SMS relay
The original iPhone shipped with an SMS (short messaging service) app. It was an ugly system that had been retrofitted for cross-carrier compatibility and had almost nothing in the way of modern messaging features. But it worked on pretty much all phones pretty much all of the time, even if cellular data — which was limited to EDGE on the first iPhone — was spotty or non-existent. In other words, it was the original cross-platform mobile instant messenger.
Apple didn't even offer MMS (multi-media messaging service) at first. The iPhone was an internet communicator and that meant it had real, rich, HTML email, so why even offer MMS? Turns out people wanted to be able to send picture and video messages to their family, friends, and colleagues who weren't using iPhones but did have MMS. So, within a couple years, Apple added MMS.
Carriers charged a fortune for SMS/MMS. When iMessage shipped as part of iOS 5 and OS X Lion, Apple sought to solve many of those problems. It offered reply-state notification, similar to BlackBerry's BBM, could handle all sorts of data types, similar to MMS, and used Wi-Fi or cellular data for its transmissions, so it didn't require an extra texting plan. At least not if you were talking to other Apple users.
Like the lack of MMS before it, it was that last part that caused friction. Being able to iMessage from an iPad or iPod touch or Mac is fantastic, unless we have a friend, family member, or colleague using what Apple calls a "lesser device" — an Android phone, Windows Phone, BlackBerry, or feature phone. For anyone not on an iPhone, those "green bubbles" simply didn't exist, and the seamless nature of the iMessage experience was broken.
That, the seamlessness of the messaging experience, is what Continuity fixes.
Like with call relay (see above), to use SMS/MMS relay, you have to be logged into the same Apple ID and on the same Wi-Fi network. That helps insure security and privacy.
Receiving SMS and MMS on your Mac is easy. Green bubbles simply appear in the standard Messages app alongside the blue ones, same as they've always done in the iPhone Messages app.
To send an SMS or MMS from your Mac, just go to Safari, Calendar, or Contacts, pick a number, and choose to send a message. The conversation will likewise start, or continue, in the same Messages app.
Apple's business model means we're probably not going to see iMessage for Android or Windows any time soon, nor will others like WhatsApp or Skype be built-in.
All of it will simply be sent from your Mac, to your iPhone, and out over the carrier SMS/MMS system, just like any other text or multi-media message.
SMS and MMS might be old technologies but they're still popular technologies. More importantly, with iMessage remaining exclusive to Apple devices, they're the only cross-platform messaging system built-into the iPhone, and one that didn't previously exist on the iPad or Mac. That made for an incomplete experience.
Apple's current business model means we're probably not going to see iMessage for Android or Windows or the web any time soon, nor are third-party messengers like WhatsApp or Skype ever going to enjoy built-in status. That again leaves SMS and MMS.
And that means, thanks to Yosemite, as long as Mac customers also have an iPhone anywhere in the room or the vicinity, they get the same SMS and MMS access on those devices that they get on the phone itself. That absolutely fits Apple's business model of making the sum worth more than the value of the individual parts.
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