Belgium rumored for 3G iPhone
Belgium may soon join the ranks of countries that will receive a 3G iPhone, according to regional site Astel.be. In a move similar to the one rumored for Italy, the online publication claims handset will be available unlocked.
MacNN notes that while this plan may fall in line with rumored tweaks to Apple's iPhone distribution model -- by which the handset would fetch a higher retail cost but not required lengthy service contacts -- it may also be necessary by Belgian law, as recently the case in France.
Three Belgian carriers -- Proximus, Mobistar and BASE -- are said to be creating special data packages for the iPhone, supporting unlimited transfers and "visual messaging." It's also reported that like TIM in Italy, Mobistar may have a temporary exclusive on the device that would last a few months.
512GB SSDs from Toshiba around 2009
Toshiba hopes to quadruple the capacity of its solid-state drives in the foreseeable future while cutting their production costs, the company's semiconductor chief Shozo Saito has told an audience at an IDEMA seminar in Japan.
The electronics manufacturer isn't set to ship its 128GB drive in computers until June but says process refinements will let it store up to four data bits per memory cell and shrink the chipmaking process to 30 nanometers by the end of 2009, allowing the company to offer a 512GB drive to system manufacturers like Apple around that time.
By fitting more data into a given space, Toshiba will also reduce the cost of making flash memory itself, Saito says. The Japanese company estimates that it can reduce the price of making SSDs by as much as 40 to 50 percent every year, resulting in far less expensive drives at greater storage levels.
While a 1.8-inch SSD costs 2.9 times as much as its rotating hard disk equivalent, a reliable price drop could reduce the cost to a comparatively reasonable 40 percent premium within the near future.
Apple Web traffic up 13 percent
According to new data from Nielsen Online, Web traffic to the Apple-owned web properties collectively grew 13 percent year-over-year in the first quarter of 2008, from a three-month average monthly unique audience of 42.9 million to 48.4 million.
Total minutes spent on the sites grew 12 percent year over year, from 9.4 billion in Q1 2007 to 10.5 billion in Q1 2008, while total purchases at The Apple Store grew 32 percent month over month, from 322,000 purchases in January 2008 to 424,000 purchases in February 2008. iTunes, Apple Store and QuickTime were the top three fastest growing Apple Computer Web channels year-over-year in Q1 2008
Meanwhile, Nielsen Mobile reports iTunes had 2.9 million unique visitors per month over mobile phones in Q4 2007. iTunes users averaged 9.0 visits at 10 minutes per visit in December. Much of that traffic comes from iPhones, which accounted for 0.5 percent of the embedded US handset market in Q4 2007.
UK shoppers flocked to the retail shops of O2 and its retail partner Carphone Warehouse last week after the British wireless carrier announced a 100 pound price drop on the 8GB iPhone, MobileToday is reporting.
O2 stores in Newcastle, Birmingham and London said they each sold out of the touchscreen handset last Wednesday, the same day the price cuts were announced.
"And an employee in Carphone Warehouse�s flagship store on London�s Oxford Street said sales had doubled from 30�per day to 60, while another Carphone staffer commented: �We usually sell one or two a day, but yesterday we sold about 20 � it was like launch day again.�"
O2 was expecting its stock to be replenished ahead of this week, the report says.
Steve Jobs and The Pixar Story
Apple chief executive Steve Jobs, along with Tom Hanks and George Lucas, will be among the interviewees in a vibrant documentary on the history of Pixar animation studios set to air at 10:00 p.m. local time Tuesday (tonight) on the Starz movie channel.
"Here's the problem with this documentary, which charts the birth, near-death, and explosion of the multiple-Oscar-winning animation studio:," reads a description from Entertainment Week. "It will make you realize that your job sucks. Because unless you work for John Lasseter at the MIT-meets-Romper Room HQ, hatching hits like Toy Story and Cars, then you have no idea how rewarding a job can be."
Mac OS X 10.5.3 build 9D23
Just days after privately releasing Mac OS X 10.5.3 build 9D22 to its vast developer community, Apple on Monday evening pushed out yet another build of the impending update to its Leopard operating system carrying build number 9D23.
According to people familiar with the distribution, the latest build lists no known issues and Apple made no changes to the twelve core areas of the software for which developers should reserve their testing efforts.
However, the new build added eight new code corrections to a bug fix list now sprawling nearly 180 items long. Amongst the most recent additions were resolutions to issues with mounted Boot Camp volumes, Safari bookmarks and .Mac Mail accounts, and memory leaks spurred by Finder accessibility windows.
Based on timeframes provided to AppleInsider, the Mac OS X 10.5.3 Update should be released to Leopard users within the next two weeks.
AT&T profits rise 22 percent
AT&T Inc. said Tuesday that first-quarter profits rose 22 percent, fueled largely by the addition of 1.3 million net wireless subscribers -- a sign that the nation's largest wireless carrier has thus far escape the adverse affects of a slumping U.S. economy.
Net income rose to $3.46 billion, or 57 cents a share, up from $2.85 billion, or 45 cents a share. Meanwhile, revenue increased 6.1 percent to $30.74 billion from $28.97 billion.
The exclusive U.S. wireless provider for Apple's iPhone said wireless sales were up 18 percent to $11.8 billion and that it ended the first quarter with a nation-leading 71.4 million mobile customers.
Though the Cupertino-based Mac maker largely beat estimates for its second fiscal quarter on Wednesday, one sore spot appeared to be gross margin, which came in at about 100 to 200 basis points below most analysts' expectations at 32.9 percent.
An ensuing conference call was thus dominated by matter, as Wall Street folk routinely pelted management with questions on the perceived shortcoming as they sought a better understanding for their models going forward.
While management largely attributed the near 2 percent margin decline from the prior quarter to February's iPod shuffle price cut and a routine falloff in sales of Mac OS X Leopard and iWork, Piper Jaffray analyst Gene Munster offered his own explanation.
"We believe the margin outlook may be viewed negatively by investors, who likely wanted to see more of Apple's significant revenue upside trickle down to earnings," he wrote in a note to clients early Thursday morning. "The bottom line, we believe the margin was negativity impacted by a higher mix of Mac Book Air, which we now believe carries a lower margin."
On the bright side, Apple has likely built the potential for margin expansion into its MacBook Air design as adoption swells and component prices fall. What's more, Apple management appeared upbeat in stating that the Air has thus far shown little to no cannibalization effect on the company's other notebook offerings and thus could be considered largely responsible for helping push Mac unit growth to its highest rate in nearly two decades.
"The key takeaway from Apple's March quarter is that the Mac units grew at the highest year-over-year rates (units 51 percent and revenue 54 percent) in 17 years," Munster added in his note to clients. "Macs are the most meaningful category with the most potential and they are performing the best."
Looking ahead, the Piper Jaffray analyst said he's modeling conservatively for Mac growth rates to decline to 12 percent year-over-year for the remainder of calendar year 2008, which leaves "ample room for positive estimate revisions over the next 8 months."
"Mac growth is accelerating despite multiple quarters of strong growth, iPod sales are stabilizing with higher average-selling-prices due to the touch, and the iPhone will be significant in the second half of the year with the release of new hardware and software," he wrote.
AmTech downgrades Apple shares to Neutral on valuation
Published: 10:00 AM EST
Investment firm American Technology Research on Tuesday cut its long-standing Buy rating on shares of Apple Inc. to Neutral, citing near-term concerns with the stock's valuation, high expectations on the part of investors, and a potential product vacuum ahead of the third calendar quarter. Specifically, Wu noted that shares are now trading at 32 times calendar year 2008 earnings and near his previously stated $175 price target. These levels are "not that compelling," he said, and warned of the potential for a 15 to 20 percent correction in the near term that could see the shares fall back to $135 to $140 levels. Apple's PA Semi buyout motivated by assets, not products
Published: 07:30 PM EST Despite speculation that Apple's acquisition of PA Semiconductor was motivated by the chip maker's specific products, a new report reveals that the iPhone designer is interested more in the buyout for its promises of intellectual property and development expertise -- and may be causing a crisis for the US Department of Defense in the process. Instead, the buyer (since identified as Apple) is focusing on more abstract intellectual developments and engineering staff, leaving the door open to the use of Intel's Atom platform for future Apple designs. PA Semiconductor is best-known for developing very high efficiency embedded processors, such as a dual-core, 64-bit PowerPC-based chip that runs at 2GHz but uses only 15 watts of power. While the product itself no longer useful to Apple, which has switched all its computers to Intel's x86 architecture, the achievement itself has drawn attention from since its launch in February of last year by outperforming other rivals in the field while simultaneously running more efficiently. Nonetheless, Apple's takeover may leave many of those customers -- and the US military -- hanging out to dry, according to an unnamed employee of one of the affected firms. Though still considered a startup company, PA Semiconductor has already encountered unprecedented success in selling its products and is heavily invested in military technology. More than 10 defense devices, including some from Lockheed Martin and Raytheon, already use the young electronics firm's PWRficient processor to varying levels across every branch of the US armed forces. This bucks conventional industry wisdom, which hesitates to use brand new technology until well-tested. "I've never seen such fast adoption of a product in the [military aerospace] world," the alleged insider says. Apple, however, is said by PA Semi to be uninterested in continuing development of those chips and may farm out production on end-of-life terms only if it can transfer a third-party technology license. That will leave many of the smaller company's present-day customers without a long-term source of parts and is already seen as problematic for military contractors like Raytheon, which often spend "many" years developing and maintaining combat equipment. The risk of an abrupt processor supply cutoff is also reportedly enough that the US Department of Defense may be compelled to plead its case to Apple. No intervention is currently underway, but one is described as possible should PA Semi's customers, and thus DoD part suppliers, grab the attention of the government branch. "We've had customers saying they are going to the DoD on this one," the source claims. For its part, Apple remained silent on the reasoning and effects of the acquisition during its second-quarter conference call. |
Of the eight analysts for which AppleInsider had data leading into the earnings report, Abramsky's model stood out as the most well-rounded in light of the company's actual results. He had predicted earnings of $1.11 per share on revenues of $7.2 billion and a gross margin of 34 percent, which factored in sales of 2.2 million Macs, 1.8 million iPhones, and 10 million iPods.
Wu was a close second, and along with Lehman's Ben Reitzes came the closest to predicting the company's actual gross margin -- an indicator of a company's profitability at the most fundamental level -- with his estimate of 33.5 percent. The remainder of his forecast included per-share earnings of $1.10 on $7 billion in revenues, based on estimated sales of 2.15 million Macs, 1.5 million iPhones, and 10 million iPods.
In a research note release to clients Thursday, Abramsky reiterated his Buy rating on shares of Apple, bumping his price target by $10 to $200 a share. He called on investors to realize that the advent of a 3G iPhone in the near term will enable the Cupertino-based company to tap a global market five times the size of the MP3 player market and ten times the size of the worldwide PC market.
According to the analyst, other pending catalysts for the stock include higher capacity iPod touch players and refreshed MacBooks with aluminum enclosures later in the calendar year, as well as a boost in international Mac sals as consumers in foreign countries see increased exposure to the company's well-received iPhone handset.
"Apple may phase out the 80GB Classic following the launch of a 64GB iPod touch," he said, adding that greater availability of video content on the iTunes Store/Apple TV also creates a need for current generation iPods that are video capable, and thus may drive a replacement cycle for a significant number of consumers.
In his own report Thursday, Wu noted that some investors may be concerned that Apple's revenue upside did not translate into big per-share earnings upside, and cited gross margin as the culprit.
"One may beg the question of whether Apple has lost its unparalleled ability to capitalize on declining component prices," he wrote. "We believe it is too early to declare this, but we believe this could remain a lingering concern."
As such, Wu maintained his Neutral rating and positive longer-term fundamental view on the company, but continued to wave caution at buying into shares at current levels.
"We remain concerned with volatility in shares and a potential vacuum before the launch of 3G iPhones and new Macs," he said.
"Apple buys smaller technology companies from time to time, and we generally do not comment on our purposes and plans," said Apple spokesman Steve Dowling. He declined to go into the specifics of the agreement, but a person familiar with the matter speaking to Forbes said the deal would consist of a $278 million cash transaction.
Both Apple chief executive Steve Jobs and Apple iPod chief Tony Fadell are said to have been instrumental in the deal, which included negotiations that took place at Jobs' home in Palo Alto, Calif.
Forbes speculates that move on Apple's part is a strategic one aimed at assuring it can continue to differentiate its next-generation handheld products amongst a growing fleet of competitors, many of which may choose to base their designs around Intel's widely available offerings.
P.A. Semi was founded in 2003 by Dan Dobberpuhl, who was among the lead designers for the Alpha and StrongARM microprocessors put forth by Digital Equipment in the 1990s, according to the report.
In February 2007 the chip maker released a 64-bit dual core processor which it claimed was 300 percent more efficient than any comparable offerings, consuming only 5 to 13 watts while running at 2 gigahertz.
The efficiency of mobile processors has been of particular concern for Apple, particularly as it embarks in new business directions such as mobile phones where battery life is critical. As such, the power savings offered by P.A. Semi's designs may have been amongst the firm's most compelling assets in Apple's eyes.
iTunes vids failing on 5th gen iPods; GPS in iPhone code? More
Published: 06:55 PM EST
Owners of Apple's early video-capable, fifth-generation iPods have found that some recent iTunes Store videos refuse to play. Also, beta versions of the iPhone's 2.0 software emulator make reference to currently unused GPS features, Apple has released its Aperture SDK, and Sony has acquired the company that provides track titles for iTunes.
5G iPods stalling on newer iTunes videos
Owners of Apple's previous-generation, full-size iPods are reporting on the company's support forums that many videos released through iTunes from April 10th onwards aren't playing properly on their devices.
While no apparent changes have been made to the videos, any attempt to play them stalls out or plays only one component, such as audio. Videos either obtained from different sources or those posted to the Apple-run service before April 10th work properly, even if purchased after the apparent switchover date.
The issue is described as independent of the exact version of iTunes and persists after restoring iPods or reinstalling iTunes.
Apple hasn't offered an official explanation or solution to the problem, but is now known to be "working toward a resolution" and may have at least resolved the issue for videos purchased within the past two days, which some users say are playing properly. Newer players such as the iPod classic and iPod touch haven't encountered playback difficulties.
iPhone 2.0 code mentioning GPS support?
Apple has built in hooks for iPhone GPS features that aren't possible with the current hardware, according to a
Owners of Apple's early video-capable, fifth-generation iPods have found that some recent iTunes Store videos refuse to play. Also, beta versions of the iPhone's 2.0 software emulator make reference to currently unused GPS features, Apple has released its Aperture SDK, and Sony has acquired the company that provides track titles for iTunes.
Owners of Apple's previous-generation, full-size iPods are reporting on the company's support forums that many videos released through iTunes from April 10th onwards aren't playing properly on their devices.
While no apparent changes have been made to the videos, any attempt to play them stalls out or plays only one component, such as audio. Videos either obtained from different sources or those posted to the Apple-run service before April 10th work properly, even if purchased after the apparent switchover date.
The issue is described as independent of the exact version of iTunes and persists after restoring iPods or reinstalling iTunes.
Apple hasn't offered an official explanation or solution to the problem, but is now known to be "working toward a resolution" and may have at least resolved the issue for videos purchased within the past two days, which some users say are playing properly. Newer players such as the iPod classic and iPod touch haven't encountered playback difficulties.
iPhone 2.0 code mentioning GPS support?
Apple has built in hooks for iPhone GPS features that aren't possible with the current hardware, according to a
Apple posts profit of $1.05B, ships nearly 2.3 million Macs
Published: 04:35 PM EST
Apple said Wednesday that second-quarter profits rose over 36 percent to $1.05 billion, or $1.16 per diluted share, on sales of $7.51 billion for the three-month period ended March 29, 2008.
These results compare to revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, in the year-ago quarter. Gross margin was 32.9 percent, down from 35.1 percent in the year-ago quarter, and international sales accounted for 44 percent of the quarter's revenue.
Apple shipped 2,289,000 Macintosh computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The company also sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter.
Quarterly iPhone sales were 1,703,000.
"We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history," said Apple chief executive Steve Jobs. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."
"We're thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion," added Apple chief financial officer Peter Oppenheimer. "Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00."
Apple will conduct its Q2 2008 financial results conference call in about 30 minutes -- AppleInsider will provide full coverage.
These results compare to revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share, in the year-ago quarter. Gross margin was 32.9 percent, down from 35.1 percent in the year-ago quarter, and international sales accounted for 44 percent of the quarter's revenue.
Apple shipped 2,289,000 Macintosh computers during the quarter, representing 51 percent unit growth and 54 percent revenue growth over the year-ago quarter. The company also sold 10,644,000 iPods during the quarter, representing one percent unit growth and eight percent revenue growth over the year-ago quarter.
Quarterly iPhone sales were 1,703,000.
"We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history," said Apple chief executive Steve Jobs. "With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."
"We're thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion," added Apple chief financial officer Peter Oppenheimer. "Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00."
Apple will conduct its Q2 2008 financial results conference call in about 30 minutes -- AppleInsider will provide full coverage.
"Apple buys smaller technology companies from time to time, and we generally do not comment on our purposes and plans," said Apple spokesman Steve Dowling. He declined to go into the specifics of the agreement, but a person familiar with the matter speaking to Forbes said the deal would consist of a $278 million cash transaction.
Both Apple chief executive Steve Jobs and Apple iPod chief Tony Fadell are said to have been instrumental in the deal, which included negotiations that took place at Jobs' home in Palo Alto, Calif.
Forbes speculates that move on Apple's part is a strategic one aimed at assuring it can continue to differentiate its next-generation handheld products amongst a growing fleet of competitors, many of which may choose to base their designs around Intel's widely available offerings.
P.A. Semi was founded in 2003 by Dan Dobberpuhl, who was among the lead designers for the Alpha and StrongARM microprocessors put forth by Digital Equipment in the 1990s, according to the report.
In February 2007 the chip maker released a 64-bit dual core processor which it claimed was 300 percent more efficient than any comparable offerings, consuming only 5 to 13 watts while running at 2 gigahertz.
The efficiency of mobile processors has been of particular concern for Apple, particularly as it embarks in new business directions such as mobile phones where battery life is critical. As such, the power savings offered by P.A. Semi's designs may have been amongst the firm's most compelling assets in Apple's eyes.
Notes of interest from Apple's Q208 quarterly conference call
Published: 06:15 PM EST
Apple on Wednesday announced its most profitable second quarter in company history, and held a financial conference call with analysts and members of the media. Several notes of interest from the now concluded call follow:
Apple said second-quarter profits rose over 36 percent to $1.05 billion, or $1.16 per diluted share, on sales of $7.51 billion for the three-month period ended March 29, 2008.
Apple regional business segments
Apple Americas accounted for 884,000 Mac shipments and $3.268B in revenues. These figures are up 46 percent and 32 percent year-over-year. Sequentially, shipments are up 5 percent with revenue down 24 percent.
Apple Europe accounted for 627,000 Mac shipments and $1.78B in revenues. Both these figures are up 45 percent and 43 percent year-over-year, but down 11 percent and 28 percent sequentially.
Apple Japan accounted for 118,000 Mac shipments and $424M in revenues. These figures have increased by 49 percent each year-over-year, as well as 30 and 6 percent sequentially.
Apple's Asia Pacific (and FileMaker Inc), billed as "Other Segments," accounted for 202,000 Mac shipments and $589M in revenues. These figures are up significantly, by 67 percent and 74 percent year-over-year. Sequentially, unit shipments rose 13 percent in the Asia Pacific regions with revenue decreasing 20 percent.
Apple's "Other Music Related Products and Services" segment accounted for $XXM in revenue. The figure represents a x percent year-over-year increase and a x percent sequential lift to Apple's results.
Apple's "Peripherals and Other Hardware" added $881M in revenue, representing a 35 percent growth year-over-year and 9 percent sequentially.
Apple's "Software, Service and Other Sales" segment accounted for $529M in revenue, an upward climb of 53 percent year-over-year but a 16 percent drop sequentially.
Apple's Mac business
Apple sold 856,000 desktops during the quarter and 1,433,000 notebooks. The figures signal Mac shipment increases of 37 and 61 percent for each category year-over-year. Notebook shipments climbed sequentially by 7 percent, while desktops decreased by 12 percent from quarter to quarter.
Macs accounted for 59 percent of total revenue. At an increase of 51 percent year-over-year, this growth was more than 3.5 times the market growth rate, according to IDC forecasts; this is even higher than the 2.66 times growth Apple has enjoyed in the recent past.
Revenue in the quarter was driven primarily by the Mac.
MacBooks and MacBook Pros both saw strong sales. There was equally strong demand for the iMac, plus an increase in sales of the Mac Pro.
The MacBook Air launched successfully, and customers have responded "very well" to the ultraportable design.
Educational Mac unit growth was 35 percent, the highest of any quarter in the last eight years. The company overtook Dell last year in portable sales.
Apple is worried a little bit about institutional budgets, but with 35 percent growth in the quarter hasn't seen anything to suggest a downward trend.
There are 3 to 4 weeks of Mac channel inventory.
Mac OS X Leopard revenues were just over $40 million. While a drop from the launch quarter's $170 million, this still represents the bestselling Mac OS X release in history, according to Apple.
iLife and iWork are entering their third quarter of sales and are so on the decline.
The MacBook Air was "constrained" most of the quarter, but by the end of March was in a near-ideal supply balance.
Apple repeated its first quarter observations on the demographics of MacBook Air purchasers, saying that it appealed to college professors, students, and frequent travelers.
Cannibalization of other MacBook lines by the Air is said to be low.
Apple's Apple TV and iPhone businesses
Apple sold 1,703,000 million iPhones during the quarter and earned about $378 million.
Total deferred revenue from Apple TV and iPhone was $1.93B.
Over a third of companies in the Fortune 500, and over 400 higher education institutions, have applied for iPhone developer status.
More than 200,000 people have downloaded the SDK.
Apple beat its own internal expectations for iPhone sales during the quarter, which resulted in the ongoing shortage. Inventories in US Apple stores was particularly spotty due to large numbers of iPhones being bought with an intention to unlock and resell. The company expects this to continue and sees it as a signal of strong global demand.
Apple is working very hard to roll out the iPhone to more places in Europe and Asia during the year.
Apple's 10 million-unit iPhone sales goal for 2008 includes unlocked devices.
The iPhone 2.0 software is coming in "late June." This is the first time Apple has offered a more specific timeframe for the update.
All iPhone customers will get the 2.0 software for free, whether they bought before or after the SDK announcement.
However, revenue for all iPhones sold after March 6th (the announcement date) will be deferred until after the software ships. The company reasons that every prospective buyer is aware of the upcoming software and may be influenced in their purchases.
Guidance for shipments has factored the iPhone's supply levels into the balance.
International carriers are free to price iPhones as low as they wish, Apple says. The company however won't give more detail on which companies in the relationship absorb the price drops instituted by European carriers.
American iPhone supply was low both at retail and in the channel. Apple disagrees with assertions that it mismanaged shipments by allowing overstocks in Europe while the US runs low.
Unsurprisingly, Apple won't comment on whether it will keep a 2G iPhone alongside any future 3G model. The company won't comment on "unreleased products."
Apple's Retail business
Apple's retail stores combined to sell 458,000 Mac units and generate $1.451B in revenues during Apple's fourth fiscal quarter, representing yearly growth of 67 percent in units and 74 percent in revenue. Sequentially, the retail segment produced a 9 percent decline in units and a 15 percent decline in revenue.
53 percent of retail computer buyers are new to the Mac.
Retail operating profits doubled to $334 million.
Over 580,000 hour-long personal training sessions were delivered during the quarter.
Australia, China, and Switzerland will be receiving new Apple stores.
Apple has a total of 208 stores open, and still plans to open a total of 45 in fiscal 2008. This is up slightly from earlier forecasts.
With an average 205 stores open over the period, an average store's revenue was $7.1 million, up 48 percent year over year.
There were 33.7 million visitors total to all of Apple's stores, up 57 percent year over year.
The Best Buy project ended with a little under 400 stores hosting Apple products, with a target of 600 by the summer.
Traffic in retail stores was up 12 million people year over year.
Apple's iPod and iTunes businesses
Over 10,644,000 million iPods were shipped this quarter.
iPod channel inventory remains on track at 4-6 weeks of inventory.
According to NPD, the iPod's share of digital media players gained in almost every market for which the researchers have data, resulting in 73 percent of the US market.
The iTunes Store has 50 million customers and over 85 percent marketshare in the US, according to Nielsen.
iPod shuffle sales were down until the price cut, which triggered a resurgence.
iTunes makes up a larger proportion of Apple's business this quarter versus the last.
The financial side of Q2
Operating margins were higher than expected at 17.5 percent, mainly due to higher than anticipated revenues and gross margins.
Apple held $19.4B in cash as of quarter's end, and generated $4B in cash during the last two quarters. The company has "no comment" on what it plans to do with the cash.
Much of the gross margin decline in the quarter was due to Leopard sales falling off from a historically strong first quarter on the market, as well as a drop-off in other software sales. This was also accounted for by the iPod shuffle's price cut, and international price cuts that reflect changes in currency value.
Apple's next (Q208) fiscal quarter
Apple is targeting $7.2B in revenue, gross margins of 33 percent, and earnings per share of exactly $1.
Commodity prices on flash and DRAM hit historical lows, and should remain that way for the current quarter. The LCD market is in a supply-and-demand balance, as are most other commodities such as hard drives. These should all follow historical pricing trends, and this is all factored into management's guidance.
Apple sees a sequential increase in Mac shipments for the June quarter as the educational buying season begins. The quarter typically skews towards K-12, which often buys at lower average sales prices, while the September quarter is weighted towards higher education and higher prices.
The company declines to comment on its plans for recently acquired PA Semiconductor.
Apple on Wednesday announced its most profitable second quarter in company history, and held a financial conference call with analysts and members of the media. Several notes of interest from the now concluded call follow:
Apple regional business segments
Apple Americas accounted for 884,000 Mac shipments and $3.268B in revenues. These figures are up 46 percent and 32 percent year-over-year. Sequentially, shipments are up 5 percent with revenue down 24 percent.
Apple Europe accounted for 627,000 Mac shipments and $1.78B in revenues. Both these figures are up 45 percent and 43 percent year-over-year, but down 11 percent and 28 percent sequentially.
Apple Japan accounted for 118,000 Mac shipments and $424M in revenues. These figures have increased by 49 percent each year-over-year, as well as 30 and 6 percent sequentially.
Apple's Asia Pacific (and FileMaker Inc), billed as "Other Segments," accounted for 202,000 Mac shipments and $589M in revenues. These figures are up significantly, by 67 percent and 74 percent year-over-year. Sequentially, unit shipments rose 13 percent in the Asia Pacific regions with revenue decreasing 20 percent.
Apple's "Other Music Related Products and Services" segment accounted for $XXM in revenue. The figure represents a x percent year-over-year increase and a x percent sequential lift to Apple's results.
Apple's "Peripherals and Other Hardware" added $881M in revenue, representing a 35 percent growth year-over-year and 9 percent sequentially.
Apple's "Software, Service and Other Sales" segment accounted for $529M in revenue, an upward climb of 53 percent year-over-year but a 16 percent drop sequentially.
Apple's Mac business
Apple sold 856,000 desktops during the quarter and 1,433,000 notebooks. The figures signal Mac shipment increases of 37 and 61 percent for each category year-over-year. Notebook shipments climbed sequentially by 7 percent, while desktops decreased by 12 percent from quarter to quarter.
Macs accounted for 59 percent of total revenue. At an increase of 51 percent year-over-year, this growth was more than 3.5 times the market growth rate, according to IDC forecasts; this is even higher than the 2.66 times growth Apple has enjoyed in the recent past.
Revenue in the quarter was driven primarily by the Mac.
MacBooks and MacBook Pros both saw strong sales. There was equally strong demand for the iMac, plus an increase in sales of the Mac Pro.
The MacBook Air launched successfully, and customers have responded "very well" to the ultraportable design.
Educational Mac unit growth was 35 percent, the highest of any quarter in the last eight years. The company overtook Dell last year in portable sales.
Apple is worried a little bit about institutional budgets, but with 35 percent growth in the quarter hasn't seen anything to suggest a downward trend.
There are 3 to 4 weeks of Mac channel inventory.
Mac OS X Leopard revenues were just over $40 million. While a drop from the launch quarter's $170 million, this still represents the bestselling Mac OS X release in history, according to Apple.
iLife and iWork are entering their third quarter of sales and are so on the decline.
The MacBook Air was "constrained" most of the quarter, but by the end of March was in a near-ideal supply balance.
Apple repeated its first quarter observations on the demographics of MacBook Air purchasers, saying that it appealed to college professors, students, and frequent travelers.
Cannibalization of other MacBook lines by the Air is said to be low.
Apple's Apple TV and iPhone businesses
Apple sold 1,703,000 million iPhones during the quarter and earned about $378 million.
Total deferred revenue from Apple TV and iPhone was $1.93B.
Over a third of companies in the Fortune 500, and over 400 higher education institutions, have applied for iPhone developer status.
More than 200,000 people have downloaded the SDK.
Apple beat its own internal expectations for iPhone sales during the quarter, which resulted in the ongoing shortage. Inventories in US Apple stores was particularly spotty due to large numbers of iPhones being bought with an intention to unlock and resell. The company expects this to continue and sees it as a signal of strong global demand.
Apple is working very hard to roll out the iPhone to more places in Europe and Asia during the year.
Apple's 10 million-unit iPhone sales goal for 2008 includes unlocked devices.
The iPhone 2.0 software is coming in "late June." This is the first time Apple has offered a more specific timeframe for the update.
All iPhone customers will get the 2.0 software for free, whether they bought before or after the SDK announcement.
However, revenue for all iPhones sold after March 6th (the announcement date) will be deferred until after the software ships. The company reasons that every prospective buyer is aware of the upcoming software and may be influenced in their purchases.
Guidance for shipments has factored the iPhone's supply levels into the balance.
International carriers are free to price iPhones as low as they wish, Apple says. The company however won't give more detail on which companies in the relationship absorb the price drops instituted by European carriers.
American iPhone supply was low both at retail and in the channel. Apple disagrees with assertions that it mismanaged shipments by allowing overstocks in Europe while the US runs low.
Unsurprisingly, Apple won't comment on whether it will keep a 2G iPhone alongside any future 3G model. The company won't comment on "unreleased products."
Apple's Retail business
Apple's retail stores combined to sell 458,000 Mac units and generate $1.451B in revenues during Apple's fourth fiscal quarter, representing yearly growth of 67 percent in units and 74 percent in revenue. Sequentially, the retail segment produced a 9 percent decline in units and a 15 percent decline in revenue.
53 percent of retail computer buyers are new to the Mac.
Retail operating profits doubled to $334 million.
Over 580,000 hour-long personal training sessions were delivered during the quarter.
Australia, China, and Switzerland will be receiving new Apple stores.
Apple has a total of 208 stores open, and still plans to open a total of 45 in fiscal 2008. This is up slightly from earlier forecasts.
With an average 205 stores open over the period, an average store's revenue was $7.1 million, up 48 percent year over year.
There were 33.7 million visitors total to all of Apple's stores, up 57 percent year over year.
The Best Buy project ended with a little under 400 stores hosting Apple products, with a target of 600 by the summer.
Traffic in retail stores was up 12 million people year over year.
Apple's iPod and iTunes businesses
Over 10,644,000 million iPods were shipped this quarter.
iPod channel inventory remains on track at 4-6 weeks of inventory.
According to NPD, the iPod's share of digital media players gained in almost every market for which the researchers have data, resulting in 73 percent of the US market.
The iTunes Store has 50 million customers and over 85 percent marketshare in the US, according to Nielsen.
iPod shuffle sales were down until the price cut, which triggered a resurgence.
iTunes makes up a larger proportion of Apple's business this quarter versus the last.
The financial side of Q2
Operating margins were higher than expected at 17.5 percent, mainly due to higher than anticipated revenues and gross margins.
Apple held $19.4B in cash as of quarter's end, and generated $4B in cash during the last two quarters. The company has "no comment" on what it plans to do with the cash.
Much of the gross margin decline in the quarter was due to Leopard sales falling off from a historically strong first quarter on the market, as well as a drop-off in other software sales. This was also accounted for by the iPod shuffle's price cut, and international price cuts that reflect changes in currency value.
Apple's next (Q208) fiscal quarter
Apple is targeting $7.2B in revenue, gross margins of 33 percent, and earnings per share of exactly $1.
Commodity prices on flash and DRAM hit historical lows, and should remain that way for the current quarter. The LCD market is in a supply-and-demand balance, as are most other commodities such as hard drives. These should all follow historical pricing trends, and this is all factored into management's guidance.
Apple sees a sequential increase in Mac shipments for the June quarter as the educational buying season begins. The quarter typically skews towards K-12, which often buys at lower average sales prices, while the September quarter is weighted towards higher education and higher prices.
The company declines to comment on its plans for recently acquired PA Semiconductor.
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The wait for refreshed iMacs could be over before the end of April, according to a rumor circulated Thursday by Geeksugar.
The female technology site refers to "Apple tipsters" who say the update is due next week and will most likely appear on Tuesday, as with most Apple updates. While short on details, the news outlet adds that the sources correctly identified this year's MacBook revision a day before it appeared and also says that processor speeds and hard drive upgrades are the primary candidates for improvement.
Apple is known to be developing a Penryn-based refresh of both the iMac and its Mac mini cousin for the spring, delivering the cooler-running and faster processors to systems that haven't been updated since August of 2007.
iPhone SDK update adds OpenGL ES emulation
Apple this week issued its fourth beta edition of the iPhone SDK for third-party developers.
The update is described by Apple as enabling OpenGL ES graphics to run directly from the iPhone Simulator software, saving developers the trouble of attaching a live iPhone or iPod touch to test software using the mobile 3D graphics standard.
No other major additions are reported as accompanying the release, which is free for registered iPhone developers.
Boot Camp Update 2.1
Apple on Thursday released three updates to Boot Camp, each of them targeted at improving support for different Microsoft operating systems.
Version 2.1 is available for users running Windows XP (215MB), Vista 32-bit (228MB), and Vista 64-bit (236MB). The update is required before Windows XP users can install Microsoft's Service Pack 3 update.
Users must run the update from their Boot Camp partitions.
Common Criteria Tools for 10.5
Also released this week are Apple's Common Criteria Tools for 10.5 (103KB).
The utility lets IT managers and other security-focused users assess whether a Mac OS X Leopard system meets minimum security requirements for use in certain data-sensitive conditions, such as US Federal Government offices or information security firms.
The BlackBerry maker in particular faces the greatest impact. Although it remains the definitive leader in business with the largest amount of US marketshare and close competition with Windows Mobile worldwide, the Canadian company could see its growth "slow materially" from the June quarter onwards. Once quality third-party apps are available for the iPhone, there will be less incentive to use BlackBerries for their software.
In light of the Apple development kit, RIM's development environment is "comparatively primitive" and will likely result in nothing more than essential "meat and potatoes" apps for the BlackBerry, Wolf says.
And while Exchange support for the iPhone will give it secure "push" email similar to the BlackBerry, making it an option for businesses that have previously had to rule out Apple's handset, the real danger in the long term is for the BlackBerry's early steps into the consumer marketplace. The analyst contends that RIM has a competent platform in its OS and phones like the Pearl, but also that its breakneck growth is more a virtue of providing a capable offering versus incompetent alternatives.
"BlackBerry is currently the front-runner in the consumer smartphone market in part because it met the criteria for success in this market and in part because its competitors until quite recently were simply inept," the Needham researcher elaborates. "Their failure stemmed less from their ability to design sleek phones than in their choice of an operating system on which to run them."
Wolf singles out Windows Mobile as possibly driving many customers into RIM's arms with a "difficult" OS that may satisfy the enterprise but often pushes consumers towards the BlackBerry and other alternatives. Apple is and will be stealing some of RIM's success because it's the first competitor to offer a genuine alternative for consumers who want a smartphone.
The other major American smartphone maker, Palm, is already placed in a poor position by the analyst. Most of the damage done to Palm is said to be self-inflicted through complacency -- neither the OS nor the phones have changed significantly for years, Wolf adds -- but the addition of Exchange and third-party apps to Apple's phone will add another competitor to a market that has already downplayed Palm's efforts.
Palm's new Centro smartphone is also characterized as a stopgap measure to tide users over until a real, Linux-based Treo replacement is available near the end of 2008. It sells for as little as $99 but isn't seen as capable of holding its own against either the iPhone or other rivals for the next few quarters. Most customers are attracted to the Centro for its price rather than its feature set, a situation the Needham researcher says is likely to change once prices drop.
"It�s little more than a down sized Treo," he comments.
Long absent in the Asian country, Apple may be ready with a more official Russian presence with an iTunes Store, according to new claims made by the regional IT site CNews.
The publication notes that two websites, iMacintosh.ru and iTunes-store.ru, both refer to apple.com and apple.ru e-mail addresses for support in their Internet registries. Both also proclaim "iTunes Store Russia" and list April 21st as the launch date for the store.
Billboards around Moscow also refer to the same timeframe. However, all the sites are also connected to Apple IMC, Russia's primary Apple reseller, rather than the Cupertino, Calif.-based Mac maker.
Apple hasn't commented on the report and typically doesn't pre-announce specific dates for iTunes Store openings, casting some doubt on the apparent introduction.
China Mobile refutes claims of iPhone talks
China's chief wireless carrier, China Mobile, isn't in any discussions to carry the iPhone, company chairman Wang Jianzhou has said this weekend.
The executive explains that Apple's business approach still prevents any discussion. Although not mentioned in the report, China Mobile has repeatedly said it couldn't accept revenue sharing as a matter of Chinese policy.
Still, Wang reiterates that the "door will remain open" if the demand exists.
Apple stores expected in New Orleans, western UK
At least two of Apple's future retail stores will target very wide gaps in otherwise well-served countries, ifo Apple Store reports.
The highest-profile among these will be the firm's first New Orleans area store. An outlet is now planned for the Lakeside Shopping Center in the Metairie area just north of the main city and is understood to be in the works now that the city's population is recovering from the effects of Hurricane Katrina.
Such a store, which doesn't yet have an opening date, will be just the second after the Baton Rouge location.
Simultaneously, a Bristol store in western Great Britain is reportedly planned for before the end of this year that will fill a large void between existing shops.
The retail location is most likely to surface near (but not inside) the Broadmead shopping area, according to ifo sources.
Apple buries hatchet over battery lawsuit
Rather than face a trial, Apple has agreed to settle a lawsuit regarding a battery fire in Japan.
An Osaka couple accused Apple in July 2007 of manufacturing a defective battery that caught fire and scorched both the husband and the carpet. Apple Japan has been willing to come to an agreement but has insisted that a court decide the amount: the two million Yen (roughly $20,000) originally sought is excessive, the Mac designer says.
The final terms remain private, though Sony is also implicated in the settlement and is known to have produced more than 9 million vulnerable batteries that required a global recall by Apple and other computer vendors.
Apple TV 2.0.2
Apple tonight has quietly launched firmware version 2.0.2 for its Apple TV media hub.
The update, available through the device's built-in update utility, isn't accompanied by release documentation but is currently believed to offer bug fixes that may address network reliability using 802.11n wireless.
The 39MB release, available for both Macs and Windows PCs, is recommended for all Safari users and includes improvements to stability, compatibility and security.
Specifically, Apple said the update patches four security issues, including a heap buffer overflow that existed within the browser's WebKit framework for handling JavaScript regular expressions.
The issue was reported by Charlie Miller, who discovered and exploited the vulnerability on a MacBook Air to win a $10,000 prize at last month's CanSecWest security conference.
The Safari 3.1.1 update also addressed a second issue within WebKit's handling of URLs containing a colon character in the host name. By exploiting that vulnerability, a hacker could use a maliciously crafted URL to lead a cross-site scripting attack, Apple said.
Two other issues with the Safari application itself were also addressed, though they concerned only the PC version of the browser. One of those issues made it possible for a maliciously crafted website to control the contents of a user's address bar, while the other made it possible for maliciously crafted website to cause arbitrary code execution or the Safari application to unexpectedly quit.
In addition, BD Touch could also serve to funnel movie extras from the PS3 to the iPhone, build an iPhone-based database of a user's movie collection, and beam iTunes Digital Copy versions of movies from Blu-ray discs to the Apple handhelds.
"It's a technology that is built into our professional Blu-Ray authoring tool that will allow studios, independent movie companies to enable BD Touch features," Denny Breitenfeld, the CTO of NetBlender, told Gizmodo. "These features send data in two directions from the Disc to the iPhone and vice versa. Video, Audio, text, and player commands can be sent."
Breitenfeld added that while the idea for remote control functionality has been well received, it should be noted that the BD Touch technology will also allow Blu-ray players to control the iPhone and iPod touch.
"One idea is to automatically pull up IMBD of the movie you are watching right on your iPhone or send the movie information a movie database on your phone," he explained. "The ideas are only limited to what people want and will use."
NetBlender plans on making its SDK available to all of the 100,000+ registered iPhone developers so they can begin work on "applications that easily work with all kinds of [Blu-ray] titles."
A formal announcement is expected on Thursday.
Early adopters of Apple's latest MacBook Pro EFI update are finding themselves without a usable screen, according to a growing discussion in the company's support forums.
Some users applying the update, particularly those with an external display attached, find that their computer screen refuses to display an image even if the system itself is completely responsive.
"From as best I can tell, the MBP is booting up with no problem, I just have a black screen," says one report. "I let the computer start up, and run for several minutes. I then sent the keyboard command to log off, and I could hear the computer activity increase."
Most common solutions fail to resolve the problem, including resetting the PRAM. A small number have successfully recovered by finding workarounds to restore firmware and deleting display sleep preferences, though some also report trying the same without success.
Apple hasn't commented on the matter, which so far has affected mostly mid-2007 MacBook Pro systems.
Apple hiring for Maine retail stores
Covering one of the few vacancies left in its retail strategy, Apple is hiring for its first retail store in Maine, Portland's Press Herald reports.
Position listings both at Apple's official jobs site as well as
Apple acknowledges graphics glitch with latest notebooks
Published: 10:00 AM EST
Apple is investigating problems with its new Penryn-based Intel notebooks that cause flickering and graphics corruption during media playback and web browsing.
The two issues have been widely reported by users of the company's latest 13-inch MacBooks and 15-inch MacBook Pros, both of which began shipping in February.
In particular, users on the Apple discussion forums say (1, 2, 3, 4) that QuickTime playback of video files is routinely marred by flickering or the appearance of "washed out" graphics on their new machines.
"When I am watching the Video Tutorials for any of Apple products my QT flickers dark and light, not to the point where I can't see the video, but to the point where it is annoying," one user wrote.
"Exact same problem here," replied several others.
Meanwhile, the same batch of users are also reporting instances of graphics corruption on their machines when scrolling through Safari webpages or Mail messages -- both of which rely on Apple's Webkit framework.
"My wife has got a current gen Macbook Pro that is exhibiting a very strange behavior," one user wrote in an AppleInsider forum thread on the subject. "When she's on battery power she gets graphical glitches/tearing when scrolling in a browser."
"I have a current generation [MacBook Pro] and I have the same problem," said another. "Also when loading web pages, often with pictures, the content in the active window flickers a lot."
Thus far, it appears the anomalies are the result of a software glitch rather than a flaw within hardware. Several users attempting to diagnose the problem on their own report that the issues became noticeable only after installing the Leopard Graphics update that was released alongside the recent Mac OS X 10.5.2 Update.
One user even went as far as to install a build of the still unreleased Mac OS X 10.5.3 Update -- which is said to include fixes for graphics corruption -- on his system to see if it remedied the issue. Although he claimed the upcoming update fixes the problem, another user performing the same kind of check reported that while 10.5.3 does indeed alleviate some symptoms, it "doesn't completely correct the issue."
Graphics corruption experienced on Apple's new notebook systems.
For its part, Apple over the weekend formally acknowledged the issues for the first time in an email response to one customer.
"Apple has received reports similar to the behavior you are describing and we are investigating those reports," the company said. "Further information will come in the form of a Knowledge Base article, Software Update, or Software Release."
Apple is investigating problems with its new Penryn-based Intel notebooks that cause flickering and graphics corruption during media playback and web browsing.
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In particular, users on the Apple discussion forums say (1, 2, 3, 4) that QuickTime playback of video files is routinely marred by flickering or the appearance of "washed out" graphics on their new machines.
"When I am watching the Video Tutorials for any of Apple products my QT flickers dark and light, not to the point where I can't see the video, but to the point where it is annoying," one user wrote.
"Exact same problem here," replied several others.
Meanwhile, the same batch of users are also reporting instances of graphics corruption on their machines when scrolling through Safari webpages or Mail messages -- both of which rely on Apple's Webkit framework.
"My wife has got a current gen Macbook Pro that is exhibiting a very strange behavior," one user wrote in an AppleInsider forum thread on the subject. "When she's on battery power she gets graphical glitches/tearing when scrolling in a browser."
"I have a current generation [MacBook Pro] and I have the same problem," said another. "Also when loading web pages, often with pictures, the content in the active window flickers a lot."
Thus far, it appears the anomalies are the result of a software glitch rather than a flaw within hardware. Several users attempting to diagnose the problem on their own report that the issues became noticeable only after installing the Leopard Graphics update that was released alongside the recent Mac OS X 10.5.2 Update.
One user even went as far as to install a build of the still unreleased Mac OS X 10.5.3 Update -- which is said to include fixes for graphics corruption -- on his system to see if it remedied the issue. Although he claimed the upcoming update fixes the problem, another user performing the same kind of check reported that while 10.5.3 does indeed alleviate some symptoms, it "doesn't completely correct the issue."
Graphics corruption experienced on Apple's new notebook systems.
For its part, Apple over the weekend formally acknowledged the issues for the first time in an email response to one customer.
"Apple has received reports similar to the behavior you are describing and we are investigating those reports," the company said. "Further information will come in the form of a Knowledge Base article, Software Update, or Software Release."
Blockbuster said the combination of the two companies would result in an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices, which has thus far been dominated by the efforts of Cupertino-based Apple through its tightly-knit ecosystem of hardware, software, and online services.
Word of the offer comes a week after reports suggested that Blockbuster was also evaluating a plan to enter the electronics hardware business with a set-top-box that, like Apple TV, would allow customers of its Movielink service to stream movie rentals to their high-definition TV sets.
"Our proposal offers Circuit City a significant premium to its existing stock price and creates a game-changing retail concept with a sustainable competitive advantage," said Blockbuster chief executive Jim Keyes. "We believe the combination will result in a compelling consumer proposition that will drive significant revenue and margin enhancements as well as cost synergies."
Circuit City, which operates nearly 700 stores across the US, had yet to respond to Blockbuster's offer as of Monday, compelling the movie rental chain to make its proposal public because "it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company."
Should the deal ultimately receive approval, it will form a combined retail chain of over 9,500 stores, including nearly 6,000 in the US. By comparison, Apple along with electronics retail partner Best Buy currently operate around 800 US-based retail points for the former's electronic device offerings.
Blockbuster isn't the only technology player looking to replicate the success of Apple's retail business. Last week it was reported the Microsoft is also mulling the prospect of opening a self-branded chain of retail stores to promote its Windows franchise.
The images, which were passed on to MacRumors by an eagle-eyed viewer, largely match descriptions of new MacBook and MacBook Pro designs recently detailed by AppleInsider in a report on notebook makeovers due out from the Cupertino-based company a little later this year.
Specifically, the renderings show a 13-inch multi-touch MacBook clad completely in aluminum with the exception of the keyboard, which is black to match that of the one that recently began shipping on the MacBook Air.
Meanwhile, a new MacBook Pro depicted in the images appears to share the same kind of display bezel as Apple's current iMacs, completely with black trim that frames the notebook's LCD display.
Earlier this month, AppleInsider reported that the existing MacBook and MacBook Pro would be the last of their breed, as both product families were destined for major design changes upon their next refresh.
It was reported that the 13-inch MacBooks would undergo the most significant metamorphosis, shedding their plastic enclosures for ones constructed from more eco-friendly materials such as aircraft-grade aluminum and stainless steel.
Meanwhile, the 15- and 17-inch MacBook Pro were also reported to see aesthetic revisions, which like their upcoming MacBook counterparts were described by those familiar with the products as borrowing several design cues from the August 2007 aluminum iMacs and all-new MacBook Air.
Amazon expanding digital music sales without eating at iTunes
Published: 10:00 AM EST
Much of Amazon's early success in digital music sales has come by way of customers who have never tried Apple Inc.'s iTunes Store, a sign of broader growth potential within the music download business.
NPD, one of the leading market research firms, said in a report Tuesday that just 10 percent of Amazon MP3 customers surveyed in February indicated that they had previously purchased music through iTunes.
"The fact that Amazon's early growth does not appear to be at the expense of Apple iTunes is a healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," remarked analyst Russ Crupnick.
Though having launched just six months ago, Amazon MP3 recently leapfrogged Wal-mart to become the number two purveyor of a-la-carte music tracks downloads in the US, behind iTunes.
Among the service's selling points are DRM-free tracks from all the major recording labels, a higher bit rate for digital files, and a price-per-download that is often lower than iTunes.
Still, Amazon has quite a ways to go before catching iTunes. The Apple download service does approximately 10 times more business on a unit basis than Amazon MP3, but it's the differences in the consumer demographic profiles of the two stores that's signaling a broader landscape for digital music downloads, according to NPD.
The research firm's initial consumer surveys found that 64 percent of the Amazon MP3 unit sales were traced to males compared to 44 percent for iTunes. Amazon MP3 showed the most strength among young adults aged 18 to 25, but only 3 percent of its customers were teens aged 13 to 17.
In contrast, the iTunes Music store sold nearly a fifth (18 percent) of its music to teens and also sports a healthy franchise in gift cards among that same demographic, while Amazon has a relatively small base of teen CD buyers.
"While it's still very early in the game, there's no evidence that Apple customers are deserting iTunes for a new alternative, either because of price or DRM restrictions," Crupnick said. "Amazon may simply be opening new markets from their existing consumer base and introductory promotions."
NPD says its monthly consumer tracking measures unit sales of a-la-carte downloads from services like iTunes and Amazon MP3, but does not track subscription music downloads or revenue from eMusic and other subscription music services.
NPD, one of the leading market research firms, said in a report Tuesday that just 10 percent of Amazon MP3 customers surveyed in February indicated that they had previously purchased music through iTunes.
"The fact that Amazon's early growth does not appear to be at the expense of Apple iTunes is a healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," remarked analyst Russ Crupnick.
Though having launched just six months ago, Amazon MP3 recently leapfrogged Wal-mart to become the number two purveyor of a-la-carte music tracks downloads in the US, behind iTunes.
Among the service's selling points are DRM-free tracks from all the major recording labels, a higher bit rate for digital files, and a price-per-download that is often lower than iTunes.
Still, Amazon has quite a ways to go before catching iTunes. The Apple download service does approximately 10 times more business on a unit basis than Amazon MP3, but it's the differences in the consumer demographic profiles of the two stores that's signaling a broader landscape for digital music downloads, according to NPD.
The research firm's initial consumer surveys found that 64 percent of the Amazon MP3 unit sales were traced to males compared to 44 percent for iTunes. Amazon MP3 showed the most strength among young adults aged 18 to 25, but only 3 percent of its customers were teens aged 13 to 17.
In contrast, the iTunes Music store sold nearly a fifth (18 percent) of its music to teens and also sports a healthy franchise in gift cards among that same demographic, while Amazon has a relatively small base of teen CD buyers.
"While it's still very early in the game, there's no evidence that Apple customers are deserting iTunes for a new alternative, either because of price or DRM restrictions," Crupnick said. "Amazon may simply be opening new markets from their existing consumer base and introductory promotions."
NPD says its monthly consumer tracking measures unit sales of a-la-carte downloads from services like iTunes and Amazon MP3, but does not track subscription music downloads or revenue from eMusic and other subscription music services.
Given the company's claims of a $400 Mac system and a vow to battle Apple over its Mac OS X licensing terms, the Guardian's Charles Arthur decided to do some digging on the integrity of the much talked about Miami-based solutions reseller.
The results? Not promising. Although the Psystar.com website was registered back in 2000, Google and other search engines turn up absolutely no references to the company prior to this week's news that it would offer an unauthorized Mac system.
"I called the Miami Chamber of Commerces and its Better Business Bureau," Arthur wrote. "They've never heard of it."
What's more, Psystar appears to have hastily relocated on Tuesday to an industrial park within Miami's north-west side, according to an address change posted to its website. On Monday, the company's address was listed as 10645 SW 112 Street -- a three bedroom home built in 1957 along a row of suburban houses (below).
As part of his investigation, Arthur also put in calls to phone numbers listed on Psystar's website. After a dead end at "Human Resources," he was able to get an unnamed individual on the phone by selecting the option for "Customer Support."
That individual, however, referred all of the reporter's questions to Psystar's press email, from which replies have not been forthcoming. When asked if there were many individuals like himself working in the company's support division, the individual then claimed that he was not a support representative and was instead "just answering the phones."
An address listed on Psystar's website Monday points to this suburban Miami home.
"But you know what's most interesting?," Arthur added. "Apple's complete silence on this. It hasn't said a word. I suspect that it's waiting to see if anything emerges from this."
Update: The most recent industrial park address for Psystar belongs to a packing supply firm called USA KOEN PACK whose manager has never heard of Psystar.
A new address listed on Psystar's website Tuesday points to this shipping company.
Update 2: AppleInsider reader Shane writes in to let us know that quick glance of the source code for Psystar.com reveals the company's webpages was slapped together with help from this web template.
Time Capsule vs Airport Extreme
Over the last several weeks, Time Capsule held a temporary advantage over last years' AirPort Extreme in its being able to work with Mac OS X 10.5 Leopard's Time Machine feature to deliver wireless automated backups. However, Apple's recent firmware upgrade has brought the existing AirPort Extreme units up to speed with Time Machine as well. So what's the difference, and is there still any need to upgrade?
Mac shipments suspended from NYC Schools over WiFi flaw
Published: 03:00 PM EST
Scheduled delivery of Apple computers to schools run by the New York City Department of Education have been temporarily suspended due to problems related to connecting to the DOE's wireless network infrastructure.
Apple is scrambling to address the WiFi connectivity issue within its Leopard operating system. The fix appears set to be included in the bug fixes of the upcoming Mac OS X 10.5.3 release, as noted in the report Successive Mac OS X 10.5.3 builds continue.
Until the software fix ships, all Macs on order with wireless features are being held at Dell's merge center in Austin, Texas. The DOE contracted with Dell Managed Services to handle all of the school system's tech related ordering, including the procurement of Apple desktops, laptops, and servers. Because of the WiFi compatibility problem, ordered units have been on hold for as much as two months waiting for a fix.
Apple apologized for the delay both in an email to faculty obtained by AppleInsider, and in a notice on the Apple product catalog on the Dell Managed Systems website. The company said it was working to resolve the issue as soon as possible so that the pending orders could be delivered.
Schools managed by the DOE can still order new Apple computers and servers through Dell Managed Services, and systems that do not rely on wireless connectivity can be approved for shipping despite the order suspension.
In an apologetic email, an Apple sales representative offered to help compile a list of any orders "for desktops or laptops that you DO NOT plan on using your wireless networks but rather want to have installed using standard wired ethernet hook-up" and to "work with Dell Managed Services to identify these orders and release them for installation now versus waiting for the wireless issue to be resolved."
Apple is scrambling to address the WiFi connectivity issue within its Leopard operating system. The fix appears set to be included in the bug fixes of the upcoming Mac OS X 10.5.3 release, as noted in the report Successive Mac OS X 10.5.3 builds continue.
Until the software fix ships, all Macs on order with wireless features are being held at Dell's merge center in Austin, Texas. The DOE contracted with Dell Managed Services to handle all of the school system's tech related ordering, including the procurement of Apple desktops, laptops, and servers. Because of the WiFi compatibility problem, ordered units have been on hold for as much as two months waiting for a fix.
Apple apologized for the delay both in an email to faculty obtained by AppleInsider, and in a notice on the Apple product catalog on the Dell Managed Systems website. The company said it was working to resolve the issue as soon as possible so that the pending orders could be delivered.
Schools managed by the DOE can still order new Apple computers and servers through Dell Managed Services, and systems that do not rely on wireless connectivity can be approved for shipping despite the order suspension.
In an apologetic email, an Apple sales representative offered to help compile a list of any orders "for desktops or laptops that you DO NOT plan on using your wireless networks but rather want to have installed using standard wired ethernet hook-up" and to "work with Dell Managed Services to identify these orders and release them for installation now versus waiting for the wireless issue to be resolved."
The most recent example comes by way of Gizmodo, which recently discovered that the mobile version of Safari due to ship as part of the update will allow users to save web images to their handset's photo album.
"We tried and it works: just hold your finger against an image for a longer time than usual and the popup dialog will appear," the gadget site reported. Once saved, the images can be used as background images, mailed to friends, or used as custom contact icons.
UK iPhone price cut boosts confidence in June 3G launch
Published: 09:00 AM EST
A 100 pound price cut on Apple's 8GB iPhone in the UK, confirmed by wireless carrier O2 on Wednesday, is the latest bit of anecdotal evidence to hint towards near-term release of a redesigned 3G model, according to one Wall Street analyst.
The 37 percent cut arrives on the heels of a 75 percent reduction of the same model in Germany, suggesting that Apple's European wireless partners are draining inventory of the 2.5G mobile handsets, which have been met with lackluster demand in the region, Piper Jaffray analyst Gene Munster told clients in a research note.
The price cuts, both of which end in June, "set the stage for the release of a new iPhone" that same month, he said.
In recent weeks, the analyst has polled over 60 stateside Apple retail stores on their supply of both the 8GB and 16GB iPhone models to compare inventories with those in Europe. Initially, his first two rounds of 20-store checks (1, 2) found close to no iPhones within the company's retail channel. However, a most recent 22-store check found that over 80 percent maintained limited supply of 8GB models and 50 percent had 16GB models on hand.
"We conclude that Apple is likely pacing its remaining supply of phones by trickling units into its retail channel until the new model is released," Munster said. "While limited availability of iPhones would put downward pressure on iPhone units in the June quarter, we believe it would be more than offset by the price cuts in Europe and the launch of a new model in [the month of] June."
Come June, the analyst sees a 3G model with a "redesigned exterior" fetching between $349 and $399. He believes the widely anticipate update will be the first and only significant change to Apple's handset offerings before the company begins a model expansion coupled with aggressive price reductions early next year.
"We believe Apple will follow the release of the 3G iPhone in June with the addition of one or two more models by early 2009. The most likely timing of these lower priced, third-generation iPhones is Macworld 09," Munster wrote.
"While Apple may try to debut a cheaper iPhone ahead of the 2008 holiday shopping season, we do not believe this scenario is likely. It is more likely that Apple will simply increase the capacities of the 3G models to 16GB and 32GB ahead of the holidays, simultaneous with new iPods and release the third-gen iPhones after the holidays in early 2009."
The end result, according to the analyst and his supply chain contacts in the Far East, is that come January, the Cupertino-based company will showcase "an entire family" of handsets. The move would mirror the slow diversification of the iPod family, which over its years entered new price points with each new model that was brought to the table.
As such, Munster continues to believe the inflection point in iPhone sales won't come until 2009 when cheaper iPhones are widely available.
"Specifically, we believe Apple will also introduce an iPhone between $200 and $300 in early 2009," he told clients. "We are modeling for iPhone average selling price to drop from $489 in 2007 to $365 in 2008 to $314 in 2009. This price drop, along with the continued international expansion of the iPhone, is critical to our iPhone unit estimate of 45 million [unit sales] in 2009."
Munster maintained his Buy rating and $250 price target on shares of Apple.
A 100 pound price cut on Apple's 8GB iPhone in the UK, confirmed by wireless carrier O2 on Wednesday, is the latest bit of anecdotal evidence to hint towards near-term release of a redesigned 3G model, according to one Wall Street analyst.
The price cuts, both of which end in June, "set the stage for the release of a new iPhone" that same month, he said.
In recent weeks, the analyst has polled over 60 stateside Apple retail stores on their supply of both the 8GB and 16GB iPhone models to compare inventories with those in Europe. Initially, his first two rounds of 20-store checks (1, 2) found close to no iPhones within the company's retail channel. However, a most recent 22-store check found that over 80 percent maintained limited supply of 8GB models and 50 percent had 16GB models on hand.
"We conclude that Apple is likely pacing its remaining supply of phones by trickling units into its retail channel until the new model is released," Munster said. "While limited availability of iPhones would put downward pressure on iPhone units in the June quarter, we believe it would be more than offset by the price cuts in Europe and the launch of a new model in [the month of] June."
Come June, the analyst sees a 3G model with a "redesigned exterior" fetching between $349 and $399. He believes the widely anticipate update will be the first and only significant change to Apple's handset offerings before the company begins a model expansion coupled with aggressive price reductions early next year.
"We believe Apple will follow the release of the 3G iPhone in June with the addition of one or two more models by early 2009. The most likely timing of these lower priced, third-generation iPhones is Macworld 09," Munster wrote.
"While Apple may try to debut a cheaper iPhone ahead of the 2008 holiday shopping season, we do not believe this scenario is likely. It is more likely that Apple will simply increase the capacities of the 3G models to 16GB and 32GB ahead of the holidays, simultaneous with new iPods and release the third-gen iPhones after the holidays in early 2009."
The end result, according to the analyst and his supply chain contacts in the Far East, is that come January, the Cupertino-based company will showcase "an entire family" of handsets. The move would mirror the slow diversification of the iPod family, which over its years entered new price points with each new model that was brought to the table.
As such, Munster continues to believe the inflection point in iPhone sales won't come until 2009 when cheaper iPhones are widely available.
"Specifically, we believe Apple will also introduce an iPhone between $200 and $300 in early 2009," he told clients. "We are modeling for iPhone average selling price to drop from $489 in 2007 to $365 in 2008 to $314 in 2009. This price drop, along with the continued international expansion of the iPhone, is critical to our iPhone unit estimate of 45 million [unit sales] in 2009."
Munster maintained his Buy rating and $250 price target on shares of Apple.
"The groundbreaking innovations of Mac OS X Leopard and iPhone OS offer two revolutionary development platforms for developers and IT professionals," the company wrote on its WWDC 2008 website. "Immerse yourself with information-rich sessions where Apple engineers go in-depth on the innovative technologies that power the features of these sophisticated platforms."
With the release of the official iPhone SDK, the conference will now have three distinct tracks. A new iPhone track covers the production of both native and web apps, including optimizing 3D graphics as well as network use.
An IT track is aimed at professionals integrating Apple hardware into business, including the iPhone as well as Macs.
A conventional Mac development track is also present.
In recent years, Apple chief Steve Jobs has also used his frequent keynote speeches at the event to introduce either new software or professional hardware. In 2006, the company co-founder introduced the original Mac Pro as well as Mac OS X Leopard's early features. In 2007, however, the presentation primarily saw an expanded preview of Leopard as well as a discussion of new gaming initiatives.
Still, Apple is setting the bar high for 2008 through its invite image for the event -- sent to Gizmodo -- which features two Golden Gate bridges coming together as well as a telltale byline: WWDC will be "a landmark event. In more ways than one."
WWDC 2008 invite sent to the media, courtesy of Gizmodo
Although Orange's parent firm France Telecom reportedly denied that it would cut pricing, Apple's two other European wireless partners were recently compelled to instate significant cuts on their own iPhone offerings.
In a move allegedly aimed at clearing inventory of the current generation handsets ahead of 3G models, O2 this month dropped the price of the 8GB iPhone in the UK to 169 pounds from 269 pounds, while Germany's T-Mobile slashed the same model by 300 euros to 99 euros.
Apple, O2 to slash 8GB iPhone price in the UK - report
Published: 09:00 AM EST
Apple and wireless partner O2 this week will slash the price of its iPhone handset in the UK to 169 pounds from 269 pounds as part of a limited promotion, according to a new report.
The move will see the localized version of the 8GB iPhone sell for just $333, or considerably less than the current US$399 fetching price within the United States, according to Mobile Today.
The overseas trade publication, which did not name sources, said an announcement is expected Wednesday and that the 16GB model would not see a similar reduction, remaining at �329.
Apple recently instated a similar price cut in conjunction with T-Mobile Germany that saw the local version of the 8GB iPhone fall from �399 to �99.
As was the case following the reductions in Germany, speculation is that the UK promotion is the latest precursor to a new model that will operate on third-generation (3G) wireless networks.
In a report issued earlier this month, Piper Jaffray analyst Gene Munster said steep price cuts on the touch-screen handset are a sign Apple is looking to drain existing inventories ahead of 3G iPhone launch no later than June.
The analyst noted that the electronics maker has been able to maintain tight control of iPhone inventory at its own stores, which have been running extremely lean of stock in recent weeks.
"This type of channel control is typical of Apple ahead of new products," Munster wrote. "In Europe, the opposite story seems to point to the same conclusion. Apple's carrier partners are a completely separate channel from its own retail stores, and the carrier partners appear to be overstocked with iPhones."
"Therefore," he added, "it seems as if this has led to Apple trickling iPhones into its U.S. retails stores, while T-Mobile and other carrier partners seek to drain their stock of iPhones ahead of a new model."
The move will see the localized version of the 8GB iPhone sell for just $333, or considerably less than the current US$399 fetching price within the United States, according to Mobile Today.
The overseas trade publication, which did not name sources, said an announcement is expected Wednesday and that the 16GB model would not see a similar reduction, remaining at �329.
Apple recently instated a similar price cut in conjunction with T-Mobile Germany that saw the local version of the 8GB iPhone fall from �399 to �99.
As was the case following the reductions in Germany, speculation is that the UK promotion is the latest precursor to a new model that will operate on third-generation (3G) wireless networks.
In a report issued earlier this month, Piper Jaffray analyst Gene Munster said steep price cuts on the touch-screen handset are a sign Apple is looking to drain existing inventories ahead of 3G iPhone launch no later than June.
The analyst noted that the electronics maker has been able to maintain tight control of iPhone inventory at its own stores, which have been running extremely lean of stock in recent weeks.
"This type of channel control is typical of Apple ahead of new products," Munster wrote. "In Europe, the opposite story seems to point to the same conclusion. Apple's carrier partners are a completely separate channel from its own retail stores, and the carrier partners appear to be overstocked with iPhones."
"Therefore," he added, "it seems as if this has led to Apple trickling iPhones into its U.S. retails stores, while T-Mobile and other carrier partners seek to drain their stock of iPhones ahead of a new model."
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Builds 9D19 and 9D20 of Mac OS X 10.5.3 arrived on Friday and Tuesday, respectively, according to people familiar with the ongoing evaluation process.
Both builds delivered a handful of new fixes, brining the total number of code corrections expected as part of the operating system update to approximately 150.
With Build 9D20, Apple is also reported to have relaxed the number of core focus areas from about two dozen to just 17.
Among them, and new to the latest builds, is a request that developers test the performance of Adobe Flash media play within the Safari web browser.
Mac OS X 10.5.3 is also rumored to include a fix for graphics issues that have plagued a number of Intel-based Macs, particularly the latest versions of the MacBook and MacBook Pro.
People familiar with the impending Leopard update say the latest build includes just two known issues. One has to do with the need to possibly reset VPN settings following installation, while the other simply notes that localization support of Mac OS X 10.5.3 has not yet been completed.
Apple on Tuesday gave users an anticipated upgrade through a new NVIDIA GeForce 8800 GT upgrade card for first-generation Mac Pro systems.
The $279 add-in fulfills a promise made in January after some owners of pre-2008 Mac Pro systems complained that the originally released upgrade card is only compatible with systems from its own generation, owing to chipsets programmed only to support the 64-bit EFI firmware on the newer towers.
While Apple has never publicly commented on the delay, one report earlier this month has suggested company chief Steve Jobs' personal awareness of the issue and the company taking on its own production of a backwards-compatible version.
Apple, Starbucks team up for iTunes giveaway
Continuing their close business ties, Apple and Starbucks have begun a promo campaign dubbed Pick of the Week.
The approach stocks roughly 7,000 of Starbucks' coffee houses with iTunes cards good for a free song or music video selected by the two West coast companies. Visitors to the stores will have 60 days to redeem the code.
Having begun today, the promo has no set end date and is marketed as the "next phase" in the partnership between the two companies, which started with the launch of the iTunes Wi-Fi Music store and an accompanying 50 million song giveaway to promote the wireless service.
Fring delivers unsanctioned VoIP app for iPhone
A voice-over-Internet software developer known as Fring said on Tuesday that it doesn't want to wait for users to try a new version of its online calling app for the iPhone -- and so has developed a version for jailbroken iPhones.
The beta requires that users the third-party Installer app and load the software through the unofficial utility. This is to collect feedback from a small group of users ahead of an official (and presumed App Store) release later this year, according to the company.
Regardless of its delivery method, the software represents the first professionally developed VoIP app for the iPhone and honors Apple's third-party app limits, which allow Internet telephony on Wi-Fi but not on cellular networks.
Apple seizing chance at NYC financial district store?
Hesitation by grocer Whole Foods is giving Apple a chance at a coveted retail space in New York City's financial district, a tip handed to Racked says.
The shopping blog's alleged source claims that Whole Foods and Barney's have both been jockeying for spaces at 23 Wall Street and 15 Broad Street respectively, but that the former has withdrawn after considering the resources involved, leaving Apple an opportunity to buy a property for a future store.
The tipster reportedly adds that either location could be occupied by the Mac maker, but that 15 Broad Street has been purchased for more than $18.6 million by a buyer which, unusually, prefers to remain anonymous.
A store at 15 Broad would position Apple's shop next to the New York Stock Exchange and Wall Street, and would make for the electronics giant's fifth Manhattan store. The fourth is believed to be in development for West 34th Street, opposite the Empire State Building.
MacBook Air Bluetooth Firmware Update 1.0
Although the company did not indicate the issues addressed by the MacBook Air's Bluetooth firmware update [1.2MB], it said the software should be installed on every one of the ultra-thin notebooks.
The update should appear for users in the Mac OS X Software Update mechanism and install automatically once approved for download. However, Apple also offers these instructions for downloading and installing the software manually.
Pro�Applications�Update 2008-01
Meanwhile, Pro�Applications�Update 2008-01 [63.7MB] is a revision to Final�Cut�Studio 2.0 focused on new camera support.
The update includes Final�Cut�Pro 6.0.3, Compressor 3.0.3, Apple�HDV�Codec 1.4, PluginManager 1.7.3, and a cumulative update of shared technology components from Pro Applications Update 2007-01 forward.
In particular, Final�Cut�Pro 6.0.3 delivers support for editing media in the XDCAM�HD422 format. After applying the update, users can choose from the following XDCAM�HD422 Easy Setups: XDCAM HD422 1080i50 CBR, XDCAM HD422 1080i60 CBR, XDCAM HD422 1080p24 CBR, XDCAM HD422 1080p25 CBR, XDCAM HD422 1080p30 CBR, XDCAM HD422 720p50 CBR, and XDCAM HD422 720p60 CBR.
It also addresses issues with opening projects and exporting stills with the correct aspect ratio under Final�Cut�Pro 6.0.2, and allows for placement of generator clips in FXScript filter clip wells.
Meanwhile, Compressor 3.0.3 now includes options to create media files for Apple�TV with anamorphic (non-square) pixel aspect ratios. The pixels are scaled by Apple�TV to fit the intended aspect ratio during playback, Apple said.
Also in the new version of Compressor, the H.264 for Apple Devices Encoder pane has a checkbox that allows users to include Dolby Digital Professional (AC-3) tracks (with 5.1-channel surround sound) in output media files intended for Apple�TV playback.
Additionally, Pro�Applications�Update 2008-01 includes Apple�HDV�Codec�1.4, which provides 4:2:2 support in Final�Cut�Pro, and PluginManager 1.7.3, which includes a one-off fix for a backward-compatibility issue in which 1.7.x breaks temporal FxPlug plug-ins in Final�Cut�Pro 5.1.4.
A complete set of release notes are available here.
Having signed a non-disclosure agreement with Apple, the worker was hesitant to respond to questions on the matter from fellow members of the discussion forum, but did initially let slip that the order was for traditional aluminum-colored casings only.
The report appears to corroborate AppleInsider's source information on the subject, echoing assertions that white cases will disappear from the MacBook lineup, replaced instead by a silver, anodized aluminum enclosures reminiscent of those used in the MacBook Air and latest iMacs.
Few other details escaped along with the leak, though people familiar with Apple's plans have previously mentioned preserving the 13-inch screen and performing "trimming" around the borders of the next-gen notebooks, which should receive their makeover with their next update sometime in the second half of the year.
Meanwhile, DigiTimes cites Taiwan's Economic Daily News in reporting that United Microelectronics Corporation has been tapped as the manufacturer for the Infineon baseband processor for the 3G-capable iPhone.
The newspaper maintains that UMC will use a 65 nanometer plant to produce the chip, which (though mistakenly written as PMB878) is known to be the PMB8878 -- an integrated circuit which provides cellular data on HSDPA networks up to 7.2Mbps and is the source of the hidden SGOLD3 reference in the latest beta of Apple's iPhone 2.0 firmware.
Infineon's 2G, EDGE-only chipset for current iPhones is made by Taiwan Semiconductor Manufacturing Company (TSMC), according to the paper.
Neither EDN nor the factory worker have disclosed when the respective products are due to ship. Still, analysts tracking Infineon and other involved component makers have heard of spring production windows for iPhones, while numerous indicators have also suggest that MacBooks and MacBook Pros must wait until at least June, when Intel unveils Centrino 2 and vendors can begin using the next-generation mobile platform.
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"For one, the displays and optics take up a lot of space. Thus, the HMD may be quite large and therefore unwieldy to use. The weight of these components may further exacerbate this problem. For another, the displays may generate a lot of heat and have large power needs, which again make the HMD difficult to construct and use."
Though there exist several different architectures for producing HMDs -- including transmissive, emissive, and reflective -- Apple's design calls for the use of a micro-electro-mechanical/laser-based architecture. Still, there are concerns associated with laser HMD designs, mainly that the devices can generate a lot of heat and require a large amount of power to operate. Furthermore, some laser technologies also have safety concerns, and thus need to be housed in special enclosures in order to prevent laser leakage.
"As should be appreciated, designing around these constraints and limitations add complexity and cost to the HMD," Apple said. "Moreover, they can make the HMD aesthetically unpleasing, which reduces sales of the HMD."
As such, the company suggests a HMD apparatus that separates the laser engine from the image generator via a fiber optic cable so that the laser engine can be physically decoupled from a headgear.
"By separating the laser engine, a more lightweight compact smaller head mounted display apparatus can be created," Apple said. "Furthermore, concerns over heat, power requirement and safety at the head mounted display apparatus are greatly diminished. Another aspect of the invention relates to utilizing wedge optics to display the video images. Wedge optics are very thin and therefore a low profile head mounted display apparatus can be created. Wedge optics also provide a very large picture."
The decoupled laser engine would be a portable unit that can be carried by the user, or "may include a strap, clip or other attachment means for coupling to the user or an article of clothing thereby making it easily transportable." In such a case, Apple notes that the "user simply wears the head mounted display apparatus that includes the imaging device and displays elements on their head, and attaches the laser engine to their person thereby keeping their hands free to do other tasks."
In the case where the display elements of the HMD are formed from transparent optical materials, the user would also be free to be mobile when images aren't being displayed. For example, the user would be able see through the display unit similar to traditional eye glasses. The decoupled laser engine would not be particularly power hungry and thus could be powered by a small battery rather than a power cable, allowing the user to be free to move anywhere they like.
"In one example of this embodiment, a user simply plugs their handheld video player such as the iPod manufactured by Apple Computer of Cupertino, Calif., into the compact laser engine attached to their belt, and places the headset on their head," Apple said. "The user then selects a video to be played at the handheld video player (viewing through transparent display elements). Once selected, the handheld video player generates a video signal which is processed into synchronized light control signals and image control signals for use by the laser engine and imaging device."
"In essence," the company continued, "the laser engine and imaging device work together to create dual video images in accordance with the video signal being outputted by the handheld video player. Furthermore, the display unit receives the dual video images from the imaging device and presents them for viewing. When video is not being played, no images are being created and thus the display unit act just like glasses. In fact, the head set may further include optical components that are based on the user' eyesight so they can see normally when the system is not operating. Thus, the user is able to select other video for playing without taking off the head gear. If the laser engine further includes a battery, the user can be very mobile while utilizing and wearing the system 50 (e.g., not limited to the length of a power cord)."
Additionally, the fiber optic cable coupling the detached laser engine to the headgear could also be configured to include an audio line that provides audio signals in parallel with the video images. As such, the head mounted display apparatus may include integrated earphones capable of transmitting audio signals to the user's ears. The audio line could be an electrical line or an optical line, Apple said. "In some cases, the optical line used to transmit the RGB laser light is also used to send audio signals (e.g., multifunctionality)."
The iPod maker goes on to note that various enhancements may be applied to further improve its HMD concept. For example, the HMD may provide methods and apparatus for providing a wider field of view and creating a more natural viewing situation for a user of a head mounted display, which results in improved comfort and usability for head mounted displays.
The Apple HMD may also provide methods and apparatus for treating the peripheral area of a user's field of view in a head mounted display, and thereby creating improved comfort and usability for head mounted displays.
All three of the related filings are credited to Apple employee John Tang, with Apple iPod chief Anthony Fadell providing some input on the peripheral treatment filing.
The 'basic' OpenMac is capable of running Mac OS X 10.5 Leopard, Psystar says, and includes a 2.2GHz Intel Core 2 Duo microprocessor, 2GB of DDR2 667 RAM, an integrated Intel GMA 950 Graphics card, 20x DVD+/-R drive, 4 USB ports, and a 250GB 7200RPM drive. However, the Psystar online store also lists several upgrade options, including FireWire ports, a 2.66GHz processor, and a nVidia GeForce 8600GT 512MB graphics card.
"When comparing base configurations, [Apple's] Mac Mini costs 150% of the price of the OpenMac while offering poorer performance, smaller storage space, and RAM," the company wrote. "Not only that but the Mac Mini doesn't have the option for an nVidia GeForce 8600 video card like the OpenMac does so playing games on it is a lost cause."
Unfortunately for Psystar, its offering is only likely to test the response time of Apple's legal department. The reseller told MacLife that while it has yet to receive a correspondence from the Cupertino-based Mac maker, it would be "ready" to respond.
At issue is Section 2A of the Mac OS X End User License Agreement (EULA), which stipulates that users are allowed "to install, use and run one (1) copy of the Apple Software on a single Apple-labeled computer at a time." As such, the OpenMac (and any other Mac system based on non-Apple hardware) would appear to stand in direct violation of Apple's terms.
Although Apple ran an authorized Mac clone program for a stint of about two years in the mid-to-late 90's, its stance has remained that of disapproval ever since chief executive Steve Jobs put an end to Mac OS X licensing with the release of Mac OS 8.0.
Still, curiosity over Psystar's offering was enough to knock the reseller's website offline for most of the day. The company said its web traffic peaked at over 30,000 hits per second on Monday, causing an outage and prompting it to begin handling customer orders for the OpenMac via email.
Speaking to InformationWeek, a Psystar employee identified only as Robert said his company sees Apple's end-user license agreement, which prohibits third-party installations of Mac OS X on non-Apple hardware, as a violation of antitrust laws.
"What if Microsoft said you could only install Windows on Dell computers?," he said. "What if Honda said that, after you buy their car, you could only drive it on the roads they said you could?"
As such, the Psystar representative implied that the company is eager to bring the matter before a court, where it believes Apple will have a tough time defending its stringent licensing terms.
As part of its defense, the Miami-based reseller also appears to be accusing Apple of price gouging its customers with each Mac OS X-based computer it sells.
"They're charging an 80 percent markup on hardware," Robert told InformationWeek.
He said Psystar plans to continue selling its $400 OpenMac clone and insisted that the company isn't "breaking any laws."
Ironically, Psystar on Monday evening changed the name of its offering from "OpenMac" to "Open Computer," presumably to avoid charges that it was indeed violating trademark law.
Stateside
In total, the Cupertino-based company is said to have shipped over 1.01 million systems nationally, representing 32.5 percent growth and a 6.6 percent share of the US PC market, up from 762,000 systems and 5.2 percent share during the same three-month period last year.
In addition to its strong retail performance, there were indications that Apple showed decent growth in the professional market as well, Gartner said.
In total, US PC shipments reached 15.2 million units in the first quarter of 2008, just a 3 percent increase from the same period last year as consumers clamped down on spending over concerns of a recession and weakening global economy.
"Indications are that the market felt the squeeze in the second half of the quarter," said Mika Kitagawa, principal analyst for Gartner�s Client Computing Markets group. "The U.S. market is softening and this can potentially hasten downward price pressure and further intensify competition for the rest of 2008."
�
One bright spot was notebook systems, which drove the modest level of PC growth. �Despite declining consumer confidence, U.S. consumers did not put off mobile PC purchases as evidenced by solid mobile growth," Kitagawa said. "This growth was stimulated in part by aggressive price cuts.�
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In terms of Apple's competitors, Dell extended its lead in the U.S. with its market share reaching 31.4 percent on sales of 4.77 million systems, up from 27.9 percent and 4.126 million systems during the first quarter of 2007.
Meanwhile, HP maintained its No. 2 spot but registered its lowest year-on-year growth (-0.2 percent) since the Compaq merger in 2003. Slightly ahead of Apple in the third place slot was Acer, which shipped 1.389 million systems for a 9.1 percent share of the market, representing an 18.3 percent decline from 2007.
Worldwide
Apple did not place within the top five PC makers worldwide, which means its share fell below the 4.3 percent registered by Toshiba.
In the No. 1 spot was Hewlett-Packard, which extended its lead during the first quarter as its worldwide share increased to 18.3 percent on 17.5 percent growth, up from a 17.5 percent share a year ago. At the same time, Dell registered its second consecutive quarter of double-digit growth (21.8 percent), garnering the company a 14.9 percent share. Acer and Toshiba followed with a 9.5 percent and 6.7 percent share, respectively.
When a conference call is initiated, participants would be presented with a graphical user interface on the iPhone for use in managing the virtual locations for the plurality of participants.
"The visual indication for at least one of the participants can be assigned to a different one of the visually distinct regions, thereby causing an audio sound associated with the participant to be spatially adapted to originate from a virtual location corresponding to the visually distinct region," Apple said in the filing.
"To assist the user of the device in determining and distinguishing the different participants in the multi-party call, directional audio processing can be utilized so that the different sources of audio for the call can be directionally placed in a particular location with respect to the headset. As a result, the user of the device hears the other participants in the multi-party call as sound sources originating from different locations. "
In one implementation, Apple said the assignment to the default positions is automatic, either based on the participants' position geographically or in the order at which the participants joined the multi-party call.
"Next, a participant position screen is displayed," Apple continued with is explanation. "The participant position screen can enable a user to alter the position of one or more of the participants to the multi-party call. Here, the participant position screen is displayed such that a user of the portable communication device can manipulate or otherwise cause one or more of the positions associated with the participants to be changed. In doing so, the user, in one embodiment, can cause the physical movement of a representation of a participant on the participant position screen. Here, a decision determines whether a reposition request has been made. When the decision determines that a reposition request has been made, the associated participant is moved to the specified position."
All the participants on an iPhone conference call could also share media items such as "songs, albums, audiobooks, playlists, movies, music videos, photos, computer games, podcasts, audio and/or video presentations, news reports, and sports updates."
In particular, the patent filing contains considerable discussion of multi-party voice calls with concurrent audio playback. "One aspect of the invention pertains to a wireless system that supports both wireless communications and media playback," Apple said. "The wireless communications and the media playback can be concurrently supported. Consequently, a user is able to not only participate in a voice call but also hear audio playback at the same time."
In such instances, another graphical user interface would be presented on the iPhone's screen to allow each user to "blend" the two audio sources to their individual liking, independent of one another.
"The display screen includes a blend control. The blend control allows a user of the portable electronic device to alter the blend (or mixture) of audio from audio playback and audio from a voice call. [...] The blend control includes a slider that can be manipulated by a user towards either an audio end or a call end. As the slider is moved towards the audio end, the audio playback output gets proportionately greater than the voice call output. On the other hand, when the slider is moved towards the call end, the voice call output gets proportionally greater than the audio playback output. For example, the position of the slider can represent a mixture of the audio playback output and the voice call output with each amplified similarly so that the mixture is approximately 50% audio."
"The audio for each can be altered such that the audio from the incoming call and the audio from the media playback are perceived by a listener (when output to a pair of speakers, either internal or external) as originating from different virtual locations. The different virtual locations can be default positions or user-specified (during playback or in advance). [...] The sender or recipient of the audio sounds pertaining to a media item can be permitted to separately control the volume or amplitude of the audio sounds pertaining to the media item. As a result, the mixture or blend of the audio sounds pertaining to media items as compared to audio sounds pertaining to the voice call can be individually or relatively controlled."
The September 2006 filing, titled "Audio processing for improved user experience," is credited to Apple employees Michael Lee and Derek Barrentine.
Word of the update comes by way of Stuff.tv's Mark Wilson, who picked up the tip during a tour of Nike's Beaverton, Oregon-based headquarters, in which he also got to check out distinct pieces of footwear the shoemaker has crafted for each of the 32 Summer Olympic sports.
"The first piece of news is that Nike+ will definitely be extending its compatibility beyond the iPod Nano to the iPhone and iPod Touch," he wrote. "No surprise there really, but the interesting detail is that it could also make use of both devices Wi-Fi (and, ultimately for the iPhone, 3G capability) to let you update your training log on the fly."
With the existing version of the kit, runners must first return to their Mac or PC, dock their iPod nano, launch iTunes, and then push their latest performance data to the Nike+ website. But with the new application written for the iPhone and iPod touch -- presumably via Apple's iPhone SDK -- runners will be able to beam that data to the website wirelessly the instant they complete their workout.
The wireless feature is said to be particularly suited for use with Nike+ Coach, a new feature of the Nike+ website launched this week that simulates the experiencing of having a personal trainer schedule training runs based around the Sport Kit's 5k, 10k, half marathon or full marathon programs.
Launched in May of 2006, the $30 Nike + iPod Sport Kit for the iPod nano immediately became a runaway success, selling over 450,000 units in less than 90 days. Since then, it's believed Nike and Apple have gone on to sell millions more.
In fact, the response was so overwhelming that by early 2007 Nike said that it had sold over 3 million Nike+ compatible running shoes and as a result would build support for the iPod technology into every single pair of running shoes by the end of 2007.
See more photos of the Nike+ iPod Sport Kit
Recently, however, a couple of revelations have raised questions about the success of the Nike + iPod franchise going forward. In October, AppleInsider noted that Nike and Apple were jointly hit with a lawsuit over the technology, one seemingly of considerable merit.
In the 8-page complaint, a Utah-based athletic company alleged that it had patented similar technology in 1998 and then pitched a license to Nike two years later. According to the suit, the shoemaker sternly denied interest only to come to market with the same concept under the Nike+ moniker six years later.
Still, the largest threat to the performance-gauging technology may be Apple itself, which as AppleInsider exclusively revealed last month, is developing its own full-fledged digital lifestyle fitness companion that's far more functional and feature-rich than the Nike+ offerings.
The timeframe would coincide with the widely anticipated arrival of a second-generation iPhone with 3G wireless capabilities, iPhone software v2.0, and the first Australian Apple retail stores in Sydney and Melbourne, both of which are believed to be nearing completion.
Though somewhat suspect, the report adds that the touch-screen handset will arrive unlocked for use on many of the nation's wireless carriers and that Australian Apple resellers, unlike those in the US and Europe, will be privy to market the device to their customers.
MacTalk notes that all the major Australian carriers already operate a 3G HSDPA network, while only one -- Telstra -- maintains a network suitable for the current 2.5G EDGE-based iPhone. As such, the publication believes a 3G model would stand as the only logical choice for the region, a notion believed to also support the rumored multi-carrier model.
On Tuesday evening it was discovered that the latest private beta of iPhone software v2.0 includes references to Infineon's SGOLD3H chipset. A successor to the SGOLD2 chipset used in the current iPhone, the new version is distinguished from the earlier hardware by its 3G cellular data capabilities.
Unlike the EDGE-only chipset in the current iPhone, the new Infineon hardware not only adds 3G over HSDPA but runs up to the international standard's newer 7.2 megabit per second spec -- twice the speed of the 3.6-megabit access seen on most HSDPA networks.
It also enables new options for video that aren't present in the SGOLD2, such as live recording and two-way video calls.
While the overall computer market is predicted to drop by 9.2 percent between the quarters ended in December and March, the Mac maker is estimated to have grown its portable shipments by about 0.2 percent in the same three months of 2008. The gain would put Apple's combined MacBook, MacBook Air, and MacBook Pro deliveries for the latest quarter at nearly 1.37 million units.
Apple's desktop sales are expected to dip about 20 percent but is subject primarily to the same seasonal dips as other designers, according to Moskowitz.
iPhone and iPods are likely to be the real concern for investors, he says. JPMorgan is ramping down its estimates for iPhone and iPod shipments from approximately 1.6 million and 10.1 million units each in the March quarter to 1.5 million and 9.7 million units.
Aside from the expected post-holiday drop in sales, the reduced forecast stems partly from anticipation for the launch of a 3G-capable iPhone, which may encourage some prospective buyers to defer their purchases until an expected release later in the year. Moskowitz sees little to fear, as any immediate weakness in sales is likely to be recouped by strength later in 2008.
"As long as there is nothing to suggest that a summer launch of the 3G phone is not a possibility, we would expect investors to look past any near-term disappointment in iPhones," he explains."
For iPods, the analyst is worried only that the iPhone may be cannibalizing their sales. Apple is likely to have higher profit margins on both device types courtesy of steady drops in flash memory prices and recent hard disk drive discounts.
Moskowitz also cautions that even Apple's expected strong MacBook shipments are unlikely to assist the Cupertino, Calif.-based company in evading disappointing results. Although JPMorgan is raising its estimates on Apple's earnings from $1.05 to $1.09 per share, the electronics producer is still seen as falling prey to the same macro-economic factors as its challengers during the spring quarter.
"Across the tech hardware sector, we still believe that the June quarter could be the toughest in five years for investor sentiment, not to mention business fundamentals," the analyst says.
Apple has scheduled its latest quarterly results announcement for April 23rd.
Exploring Time Capsule: WiFi 802.11n and the 5GHz band
Published: 08:00 AM EST
Earlier versions of the WiFi specification all used the 2.4GHz radio spectrum. The new 802.11n standard, supported in Time Capsule, the square AirPort Extreme, and recently shipping AirPort Express units, allows users to alternatively select the use of 5GHz channels. This segment, the third of six, compares the pros and cons of using this new section of frequencies, which can be both problematic and provide a major boost in speed.
Our real world testing of Time Capsule's WiFi performance suggested two findings. First, wireless networking performance can and will vary all over the map even without any obvious variables changing. This makes it difficult to accurately profile the speed of a wireless configuration. In comparison, file copy times over Ethernet or direct connections such as USB were easy to verify in additional follow-up tests. Actual results for wireless throughput will vary dramatically in relation to obvious sources of radio interference in addition to other sporadic factors that are harder to identify.
Second, users with multiple base stations should ideally connect the computers that will be making heavy use of file sharing to the base station actually hosting the shared drive. This requires some network planning, as client computers will attempt to connect to the base station supplying the strongest signal of all the base stations that are on the same network. In other words, locate the Time Capsule or AirPort Extreme hosting the share drive closest to the systems that will be using it the most, and use any additional base stations to extend the network signal elsewhere.
Next, evaluate the wireless network signal strength within AirPort Utility (below) to make sure there are no obvious sources of signal interference. This could include radio emitting devices such as cordless phones and microwave ovens, unnecessary Bluetooth devices that could be turned off, and any metal barriers that might obstruct the signal. Neighboring WiFi networks may also likely impede ideal connectivity, so if possible, experiment with different WiFi channel settings to situate your wireless network outside of the signal range used by other nearby networks.
802.11n WiFi and The 5 GHz Band
As noted earlier, with WiFi 802.11n on the AirPort Extreme and Time Capsule, you can set up your network to use a different set of frequencies all together by selecting "802.11n only (5GHz)" as the radio mode in Wireless settings (below). This isolates your network from interference from other 802.11b/g WiFi networks as well as any 2.5 GHz cordless phones, but of course prevents older 802.11b/g clients from connecting to your network, including most Macs earlier than 2007 and other WiFi b/g devices such as the iPhone or iPod Touch.
If you have both old and new wireless devices, you can cable (via Ethernet, below) a new 802.11n base station hosting a 5 GHz network to an older 802.11b/g base station configured to operate in the "802.11b/g compatible" 2.4 GHz band. This enables faster devices to connect at full speed with minimal interference, while also allowing older devices to connect to the same network through the older base station and interoperate together with every other device on the same network. This setup also prevents 802.11b/g devices from temporarily slowing down a 802.11n network as they transmit, which happens when using mixed devices on a 802.11n base station configured as "b/g compatible."
Incidentally, there is also an 802.11a standard, which is essentially 802.11g running in the 5 GHz band. All of Apple's 802.11n base stations and wireless cards now backwardly support 802.11a/b/g, but Apple never directly supported the earlier 802.11a standard in its products prior to 802.11n because 802.11a was largely intended for office deployments, where the downsides to the 5 GHz band could be more easily worked around. Which brings us to the potential drawbacks--and advantages--of using 5 GHz.
On
Our real world testing of Time Capsule's WiFi performance suggested two findings. First, wireless networking performance can and will vary all over the map even without any obvious variables changing. This makes it difficult to accurately profile the speed of a wireless configuration. In comparison, file copy times over Ethernet or direct connections such as USB were easy to verify in additional follow-up tests. Actual results for wireless throughput will vary dramatically in relation to obvious sources of radio interference in addition to other sporadic factors that are harder to identify.
Second, users with multiple base stations should ideally connect the computers that will be making heavy use of file sharing to the base station actually hosting the shared drive. This requires some network planning, as client computers will attempt to connect to the base station supplying the strongest signal of all the base stations that are on the same network. In other words, locate the Time Capsule or AirPort Extreme hosting the share drive closest to the systems that will be using it the most, and use any additional base stations to extend the network signal elsewhere.
Next, evaluate the wireless network signal strength within AirPort Utility (below) to make sure there are no obvious sources of signal interference. This could include radio emitting devices such as cordless phones and microwave ovens, unnecessary Bluetooth devices that could be turned off, and any metal barriers that might obstruct the signal. Neighboring WiFi networks may also likely impede ideal connectivity, so if possible, experiment with different WiFi channel settings to situate your wireless network outside of the signal range used by other nearby networks.
802.11n WiFi and The 5 GHz Band
As noted earlier, with WiFi 802.11n on the AirPort Extreme and Time Capsule, you can set up your network to use a different set of frequencies all together by selecting "802.11n only (5GHz)" as the radio mode in Wireless settings (below). This isolates your network from interference from other 802.11b/g WiFi networks as well as any 2.5 GHz cordless phones, but of course prevents older 802.11b/g clients from connecting to your network, including most Macs earlier than 2007 and other WiFi b/g devices such as the iPhone or iPod Touch.
If you have both old and new wireless devices, you can cable (via Ethernet, below) a new 802.11n base station hosting a 5 GHz network to an older 802.11b/g base station configured to operate in the "802.11b/g compatible" 2.4 GHz band. This enables faster devices to connect at full speed with minimal interference, while also allowing older devices to connect to the same network through the older base station and interoperate together with every other device on the same network. This setup also prevents 802.11b/g devices from temporarily slowing down a 802.11n network as they transmit, which happens when using mixed devices on a 802.11n base station configured as "b/g compatible."
Incidentally, there is also an 802.11a standard, which is essentially 802.11g running in the 5 GHz band. All of Apple's 802.11n base stations and wireless cards now backwardly support 802.11a/b/g, but Apple never directly supported the earlier 802.11a standard in its products prior to 802.11n because 802.11a was largely intended for office deployments, where the downsides to the 5 GHz band could be more easily worked around. Which brings us to the potential drawbacks--and advantages--of using 5 GHz.
On
Wednesday, April 16, 2008
Apple supplier 'reveals' next-gen iPods due at usual time of year
Published: 09:00 AM EST
A long-time supplier of components for Apple Inc.'s iPods has reportedly been cut out of next-generation designs due later this year, just as conflicting reports surface over the company's orders for 32GB NAND flash chips.
Shares of Edinburgh-based Wolfson Microelectronics bled as much as 30 percent of their value, slipping to a three year low early Thursday after the company said it had lost out on a contract to supply parts for digital media players from a major customer.
Wolfson, who said the new players were due to be launched in the third quarter of 2008, warned investors that second-half revenues would be hit as a result.
In speaking to Reuters a person familiar with the matter confirmed the products in question to be new versions of iPod nano and iPod touch, which have historically seen introductions in the Sept.-Oct. timeframe.
Wolfson has been the primary supplier of audio decoder chips for Apple's iPods and iPhones, dating back to at least as early as 2005.
Meanwhile, Far Eastern NAND flash memory suppliers are reportedly agreeing to disagree with one another over changes in Apple's NAND flash procurement, specifically high-density 32GB (and larger) modules that could prove critical to a 3G iPhone manufacturing ramp in the coming months.
While Hynix and Samsung have hinted that Apple is re-stocking its NAND inventory, downstream players in Taiwan doubt their claims, saying that Apple still houses a considerable supply of chips according to their estimates.
According to DigiTimes, the downstream players believe that Apple has indeed started to stock up on the high-density NAND flash chips. However, they say Hynix and Samsung are exaggerating the magnitude of the order increase in attempts to fuel price increases.
It was reported earlier this month that, despite procuring about $1.2 to 1.3 billion worth of NAND flash memory for its products in calendar year 2007, Apple has yet to place any substantial orders this year, leading to mainstream NAND flash prices that have fallen below cost.
A long-time supplier of components for Apple Inc.'s iPods has reportedly been cut out of next-generation designs due later this year, just as conflicting reports surface over the company's orders for 32GB NAND flash chips.
Wolfson, who said the new players were due to be launched in the third quarter of 2008, warned investors that second-half revenues would be hit as a result.
In speaking to Reuters a person familiar with the matter confirmed the products in question to be new versions of iPod nano and iPod touch, which have historically seen introductions in the Sept.-Oct. timeframe.
Wolfson has been the primary supplier of audio decoder chips for Apple's iPods and iPhones, dating back to at least as early as 2005.
Meanwhile, Far Eastern NAND flash memory suppliers are reportedly agreeing to disagree with one another over changes in Apple's NAND flash procurement, specifically high-density 32GB (and larger) modules that could prove critical to a 3G iPhone manufacturing ramp in the coming months.
While Hynix and Samsung have hinted that Apple is re-stocking its NAND inventory, downstream players in Taiwan doubt their claims, saying that Apple still houses a considerable supply of chips according to their estimates.
According to DigiTimes, the downstream players believe that Apple has indeed started to stock up on the high-density NAND flash chips. However, they say Hynix and Samsung are exaggerating the magnitude of the order increase in attempts to fuel price increases.
It was reported earlier this month that, despite procuring about $1.2 to 1.3 billion worth of NAND flash memory for its products in calendar year 2007, Apple has yet to place any substantial orders this year, leading to mainstream NAND flash prices that have fallen below cost.
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Firmware Update 1.3 (1.6MB) improves the stability of Intel-based iMacs.
Apple doesn't mention which models are affected, though the fix is known to apply to aluminum models and requires Mac OS X 10.4.10 or later.
MacBook EFI Firmware Update 1.2
Version 1.2 of the 13-inch MacBook's firmware (1.8MB) improves the stability of all models.
It also requires Mac OS X 10.4.10 or later.
MacBook Air EFI Firmware Update 1.0
The MacBook Air's first EFI upgrade (2.3MB) improves its stability.
Apple incorrectly states that the update requires Mac OS X Tiger, as the Air first shipped with Leopard.
MacBook Pro EFI Firmware Update 1.5
One of the larger updates, EFI Update 1.5 (3.1MB) also addresses stability for 15- and 17-inch MacBook Pros and requires Mac OS X 10.4.10 or later.
Aluminum Keyboard Update
Affecting bundled keyboards with iMacs and Mac Pros as well as the stand-alone option, the Aluminum Keyboard Update (1.5MB) resolves an issue where a key could unexpectedly 'stick' and repeat characters.
It also mends "other issues," according to Apple, and requires Mac OS X 10.5.2.
iPhone SDK Beta 3,
Early developers for the iPhone and iPod touch now have access to beta 3 of the Software Development Kit for the devices at Apple's developer website.
The 1.4GB download is much smaller than the original 2GB version but is said by Apple to fix several bugs as well as enable support for the latest beta version of the iPhone's firmware, which is available at the same time.
Build 5A240d of the iPhone's operating system improves Microsoft Exchange support and fixes some outstanding bugs.
Updating to the new SDK requires Mac OS X 10.5.2 and is considered necessary, as the just-replaced iPhone 2.0 beta firmware expires as of Tuesday.
Sleuthing reveals this to be an Infineon chipset, the SGOLD3H (PDF), which both supplies the baseband for cellular data on GSM phones and serves equally as a general application accelerator and an audiovisual processor.
The iPhone currently uses a predecessor of the chipset, the SGOLD2, to drive its communication link.
However, the new chipset is distinguished from this earlier hardware (also listed in the iPhone firmware) for its 3G cellular data access. Unlike the EDGE-only chipset from the current Apple handset, the new Infineon hardware not only adds 3G over HSDPA but runs up to the international standard's newer 7.2 megabit per second spec -- twice the speed of the 3.6-megabit access seen on most HSDPA networks.
It also supports WCDMA, a related 3G technology needed for countries such as Japan and Korea, where the GSM service used by Europe and North America is rare to non-existent. Analysts have already warned that Apple's planned expansion into Asia this year will demand 3G.
However, the chipset doesn't take full advantage of AT&T's planned 3G expansion this year. The exclusive home of the iPhone in the US is currently upgrading to HSUPA, an improvement over HSDPA that dramatically improves upload speeds. The Infineon chipset provides faster downloads than normal HSDPA but doesn't address upstream connections beyond what's already provided in the older 3G standard.
Still, the newly discovered hardware references all but confirm the dependence of a 3G iPhone launch on Apple's firmware overhaul, which is officially scheduled to debut sometime in June. It also corroborates past claims by analysts that predicted an Infineon chip at the heart of an iPhone upgrade due in mid-year.
The introduction of a 3G iPhone is considered essential not just to the delivery of the iPhone to more areas but also to deliver services over cellular networks that typically suffer over slower EDGE connections, such as large downloads from the upcoming App Store.
Infineon's processor also enables new options for video that aren't present in the SGOLD2, such as live recording and two-way video calls, though only unverified rumors have so far suggested that Apple will add a front camera and video chats to the iPhone's feature set.
To date, Apple has sold over 100 million iPods, the majority of which have gone to Windows users who subsequently must install the company's iTunes software for synching files between their PCs and the digital media players. As part of iTunes, Apple also installs its Software Update mechanism on the Windows-based machines to notify users of iTunes updates, in addition to updates to its QuickTime media software required for several iTunes functions.
It now appears that the Cupertino-based company aspires to use the advantage presented by the Software Update mechanism to muscle its way further up the browser charts at the expense Microsoft's Internet Explorer and other third-party Windows browsers.
"Earlier today, Apple released the Safari 3.1 Web browser for Mac OS and Windows XP/Vista. A couple hours later, Apple Software Update popped up on my daughter's Sony VAIO, offering Safari 3.1 for download," noted Microsoft Watch's Joe Wilcox. "I didn't recall seeing an earlier version installed on the laptop. And I made no mistake: The Apple updater offered installation of new software, not something that had been there before. Whoa."
Windows users receiving the notification are greeted with Apple's marketing pitch alongside the download option, which reads: "Safari for Windows is the fastest and easiest-to-use web browser for the PC. It displays web pages faster than any other browser and is filled with innovative features -- all delivered in an efficient and elegant user interface."
In a statement released Monday alongside the release of Safari 3.1, Apple said the browser loads web pages 1.9 times faster than the current version of Internet Explorer and 1.7 times faster than Firefox 2.0. But when it comes to install base, Safari is world's behind.
According to NetApplications, the Apple browser maintains an approximate 5.7 percent share of the market, a distant third to the well established presences of both FireFox and Internet Explorer, which hold a 17.2 percent and 74.8 percent share, respectively. But like FireFox, Safari is slowly eating away at Internet Explorer's commanding lead. Its share has risen nearly a full percentage point over the past twelve months, while the Microsoft browser has shed about 5 percent of its share.
Meanwhile, Apple is also contending on a second front in its charge towards supremacy in the browser market, to which it has witnessed more immediate success. Its iPhone and iPod touch -- both of which ship with a mobile version of Safari -- have served to springboard the company to the top of the US mobile browser rankings in a mere eight months, according a recent report from Ireland-based StatCounter.
But Wilcox, who credits Apple with wisely leveraging its resources to infiltrate Microsoft's territory, questions how well the fledging Safari browser will hold up amongst a PC world proliferated by trojans, viruses and other rogue tactics that threaten to disrupt the stability of Windows systems.
"Safari is fairly new to Windows and has yet to really show that it has can muster the security to withstand the associated attacks," he wrote. "Mac OS X is a quaint neighborhood where little Safari was safe. By comparison, Windows is a gang-ridden ghetto: life is survival, and it's tough going."
Charles Charnas, deputy general counsel at HP, is said to be the first major acquisition of Apple's new general counsel Daniel Cooperman, filling a seat at the Cupertino-based electronics maker that has been vacant since Michael Wyatt departed in 2000.
Charnas will report to Cooperman and oversee the company's intellectual property and play a primary role in strategic acquisitions, among other things. He was elected Assistant Secretary at HP in 1999 and three years later promoted to Vice President and Deputy General Counsel.
During his 18-year tenure at HP, Charnas managed the $4.5 billion purchase of Mercury Interactive and also presided over the company's 2001 battle to acquire Compaq for $25 billion.
Charnas is also said to be a proud iPhone owner and avid guitar player. He can been seen in the below YouTube video playing a tribute HP's former CFO Bob Wayman at his retirement party.
Time Machine and AirPort Update 1.0 (10.9MB) is said to include compatibility fixes for users hoping to use Time Machine backups with the recently introduced Time Capsule wireless router and its built-in hard drive.
It also includes AirPort wireless driver fixes, according to Apple, though the company doesn't say which devices are affected or list symptoms.
The update is only available for systems running the client version of Mac OS X Leopard 10.5.2 or later.
MacBook Air Bluetooth Firmware Update 1.0
Although the company did not indicate the issues addressed by the MacBook Air's Bluetooth firmware update [1.2MB], it said the software should be installed on every one of the ultra-thin notebooks.
The update should appear for users in the Mac OS X Software Update mechanism and install automatically once approved for download. However, Apple also offers these instructions for downloading and installing the software manually.
Pro�Applications�Update 2008-01
Meanwhile, Pro�Applications�Update 2008-01 [63.7MB] is a revision to Final�Cut�Studio 2.0 focused on new camera support.
The update includes Final�Cut�Pro 6.0.3, Compressor 3.0.3, Apple�HDV�Codec 1.4, PluginManager 1.7.3, and a cumulative update of shared technology components from Pro Applications Update 2007-01 forward.
In particular, Final�Cut�Pro 6.0.3 delivers support for editing media in the XDCAM�HD422 format. After applying the update, users can choose from the following XDCAM�HD422 Easy Setups: XDCAM HD422 1080i50 CBR, XDCAM HD422 1080i60 CBR, XDCAM HD422 1080p24 CBR, XDCAM HD422 1080p25 CBR, XDCAM HD422 1080p30 CBR, XDCAM HD422 720p50 CBR, and XDCAM HD422 720p60 CBR.
It also addresses issues with opening projects and exporting stills with the correct aspect ratio under Final�Cut�Pro 6.0.2, and allows for placement of generator clips in FXScript filter clip wells.
Meanwhile, Compressor 3.0.3 now includes options to create media files for Apple�TV with anamorphic (non-square) pixel aspect ratios. The pixels are scaled by Apple�TV to fit the intended aspect ratio during playback, Apple said.
Also in the new version of Compressor, the H.264 for Apple Devices Encoder pane has a checkbox that allows users to include Dolby Digital Professional (AC-3) tracks (with 5.1-channel surround sound) in output media files intended for Apple�TV playback.
Additionally, Pro�Applications�Update 2008-01 includes Apple�HDV�Codec�1.4, which provides 4:2:2 support in Final�Cut�Pro, and PluginManager 1.7.3, which includes a one-off fix for a backward-compatibility issue in which 1.7.x breaks temporal FxPlug plug-ins in Final�Cut�Pro 5.1.4.
A complete set of release notes are available here.
The functionality, dubbed AirPort Disk, was at one time an highly touted feature of Mac OS X 10.5 Leopard. But to the dismay of many, it was subsequently scratched in the weeks leading up to the operating system's release last October, with all references to its existence vanishing from Apple's website without explanation
Despite Apple's silence on the matter, AppleInsider later cited a person familiar with the ongoing development of Leopard as saying that company had internally classified the inability to select an AirPort Disk under Time Machine as a known issue. The matter was assigned a unique "Bug ID" number and titled: "Cannot set Time Machine Backup to AirPort Disk."
In the bug report, Apple noted that the issue was "currently being investigated by engineering," offering a ray of hope that it would be restored one day once the technological kinks had been knocked out. On Wednesday, the company released Time Machine and AirPort Update 1.0, marking the feature's long awaited return.
After downloading the update, users reported the ability to select external USB drives connected to the latest AirPort Extreme 802.11n Base Stations as the destination drive for backups under the Time Machine control panel. They also reported that the software update changed their Leopard build from 9C31 to 9C7010.
Apple's Manhattan-based retail stores and others are having trouble maintaining stock of iPhones.
The Huffingtonpost is reporting that not a single iPhone -- either 8GB or 16GB -- was available for purchase on Tuesday from any of the company's three flagship retail stores on the island.
"Apple Store employees at all three New York locations -- the original SoHo store, the 59th Street location, and the most recent addition, on West 14th Street -- have confirmed that each store is sold out of iPhones, and they don't know when they'll be getting new ones," the paper said.
AT&T retail stores in Manhattan aren't yet feeling the affects of the shortage, though Apple's online store is also reflecting an approximate 1 week delay for all new orders, suggesting that considerable backlog currently exists for whatever reason.
Cherry Hill store grand opening
Meanwhile, this weekend will see New Jersey gain its 10th Apple retail store when the Apple Store Cherry Hill opens to the public on Saturday, March 29, 2008 at 10:00 a.m. EDT.
Located at the Cherry Hill Mall, the shop is just a short drive from the Apple Store Sagemore in Marlton, New Jersey on Route 73 South.
2008 PC forecast
Gartner said Tuesday that worldwide PC shipments are forecast to total 293 million units in 2008, up 10.9 percent from 2007 shipments of 264 million units. However, analysts warned that growth could fall into single digits if global economic headwinds strengthen.
"In many respects, the PC market is fundamentally in good shape. Mobile PCs continue to exhibit strong momentum, emerging-market growth remains robust, and desk-based PC replacement activity is stirring," said George Shiffler, research director at Gartner. "However, a deepening U.S. recession, the rising possibility of a sharp slowdown in China's economy following the Beijing Olympics, and the elevated price of oil mean global PC shipments face increasing economic headwinds."
Worldwide demand for mobile PCs remains one of the key drivers of strong PC market growth, according to Gartner, which added that technology and design improvements have not only lowered the price of mobile PCs but also significantly improved their value proposition relative to desk-based PCs.
The relative value of mobile PCs has also been bolstered by the continued expansion of mobile access, which continues to stimulate strong demand for mobile PCs across both mature and emerging markets. Gartner analysts said mobile PC shipments will gain additional momentum as so-called "affordable" mobile PCs, which address price points once thought impossible for mobile PCs, become more widely available.
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45nmm Xeons in low-power configs
Intel today used little fanfare to introduce new Xeon 5000-series quad-core processors that promise lower power without the accompanying drop in performance.
The 2.33GHz L5410 and 2.5GHz L5420 are built on the smaller 45 nanometer Penryn architecture that underpins most of Intel's lineup but are tuned to consume much less power than standard Xeons.
At their thermal design limits, both of the new Xeons consume no more than 50 watts, according to the chipmaker. This advancement allows for smaller, more efficient workstations and servers that can still handle heavy-duty tasks.
iPod Reset Utility 1.0.3
Apple on Monday evening released iPod Reset Utility 1.0.3 for both Mac and Windows PCs.
First- and second-generation iPod shuffle owners can use iPod Reset Utility to restore the players back to their factory settings.
PluginManager 1.7.3
On Tuesday evening, Apple released PluginManager 1.7.3 (864KB).
The update is said to improve the reliability of most Apple professional apps, including Aperture, Logic, Final Cut Express, Final Cut Studio, and "related SDKs."
Upgrading requires at least Mac OS X Tiger 10.4.9 or Mac OS X Leopard.
Austria
Teen iPhone share seen doubling as iPod, iTunes flatten
Published: 06:30 PM EST
In the latest round of its semi-annual teen surveys, analyst group Piper Jaffray finds that ownership of Apple's iPhone has doubled in six months and is set to double again, though cooling iPod and iTunes use suggests a changing of the guard.
Of the nearly four hundred teenagers questioned by Piper for its spring study, about 6 percent of these already owned an iPhone despite the handset being on the market for less than a full year. The figure represents exactly twice the percentage of the youths that owned the Apple technology in the fall.
Crucially, the remaining percentage that plans to buy an iPhone hasn't changed. As with the fall poll, 9 percent of all the teen respondents expect to buy the device sometime within the next six months.
To senior analyst Gene Munster, this potentially signals a trend that doubles Apple's user share once again, with as much as 12 percent of the same group owning the touchscreen phone by the time of the next survey, in fall 2008. The increase would give Apple more than its desired 10 percent share of the cellphone business, albeit only among younger buyers.
Ownership of its longstanding iPod line is also at a record high since the surveys began tracking the information, Piper Jaffray notes. From those that own an MP3 player, about 86 percent have at least one form of iPod, up from 82 percent half a year before. Overall use of MP3 players is also at a record 87 percent, climbing significantly from 80 percent in the last survey.
iTunes use is also up slightly, with 81 percent of legitimate music downloaders using the Apple-run store versus 79 percent in the last survey. The balance has shifted more towards legal purchases, with 39 percent of the teens choosing to buy downloads rather than simply bootleg them through peer-to-peer networks.
The report suggests to the analysts that Apple has little to fear for its control of the US music business in the short term, especially among its younger customers.
"Apple's dominance in the portable media and online music markets is going seemingly unchecked," Munster observes.
Clouds loom over the news, however, and point to the iPhone potentially dulling the iPod's earlier success. While Apple's command of MP3 players has increased, actual demand for any MP3 player has dropped to its lowest amount in three years -- just 28 percent look to buy a new player in the next six months, while 47 percent did in fall 2007.
Moreover, while Apple's share of online music purchases is higher than in late 2007, it remains smaller than all-time highs of 89 and 91 percent set in fall 2007 and spring 2006 respectively. Munster and fellow analysts believe it may the result of more sites offering music without copy protection, permitting iPod owners to buy more of their digital music outside of iTunes.
Nonetheless, the threat is understood to take root more in general market forces than in weaknesses inherent to Apple's own strategy.
Use of non-Apple online stores has dropped from 16 to 13 percent, and any gains by challengers in the MP3 player category primarily come at the expense of others. Microsoft's Zune has become the second most popular, with 3 percent owning the device and 13 percent planning to buy, but the share for virtually all others but Apple has dropped or else remained flat, uncovering a shift rather than a takeover.
"While Microsoft is gaining on Apple, the share growth is coming at the expense of players other than Apple, as Apple's share is growing too," Munster writes. "It is clear to us that Apple has captured the "cool factor" among high school students across America."
In the latest round of its semi-annual teen surveys, analyst group Piper Jaffray finds that ownership of Apple's iPhone has doubled in six months and is set to double again, though cooling iPod and iTunes use suggests a changing of the guard.
Crucially, the remaining percentage that plans to buy an iPhone hasn't changed. As with the fall poll, 9 percent of all the teen respondents expect to buy the device sometime within the next six months.
To senior analyst Gene Munster, this potentially signals a trend that doubles Apple's user share once again, with as much as 12 percent of the same group owning the touchscreen phone by the time of the next survey, in fall 2008. The increase would give Apple more than its desired 10 percent share of the cellphone business, albeit only among younger buyers.
Ownership of its longstanding iPod line is also at a record high since the surveys began tracking the information, Piper Jaffray notes. From those that own an MP3 player, about 86 percent have at least one form of iPod, up from 82 percent half a year before. Overall use of MP3 players is also at a record 87 percent, climbing significantly from 80 percent in the last survey.
iTunes use is also up slightly, with 81 percent of legitimate music downloaders using the Apple-run store versus 79 percent in the last survey. The balance has shifted more towards legal purchases, with 39 percent of the teens choosing to buy downloads rather than simply bootleg them through peer-to-peer networks.
The report suggests to the analysts that Apple has little to fear for its control of the US music business in the short term, especially among its younger customers.
"Apple's dominance in the portable media and online music markets is going seemingly unchecked," Munster observes.
Clouds loom over the news, however, and point to the iPhone potentially dulling the iPod's earlier success. While Apple's command of MP3 players has increased, actual demand for any MP3 player has dropped to its lowest amount in three years -- just 28 percent look to buy a new player in the next six months, while 47 percent did in fall 2007.
Moreover, while Apple's share of online music purchases is higher than in late 2007, it remains smaller than all-time highs of 89 and 91 percent set in fall 2007 and spring 2006 respectively. Munster and fellow analysts believe it may the result of more sites offering music without copy protection, permitting iPod owners to buy more of their digital music outside of iTunes.
Nonetheless, the threat is understood to take root more in general market forces than in weaknesses inherent to Apple's own strategy.
Use of non-Apple online stores has dropped from 16 to 13 percent, and any gains by challengers in the MP3 player category primarily come at the expense of others. Microsoft's Zune has become the second most popular, with 3 percent owning the device and 13 percent planning to buy, but the share for virtually all others but Apple has dropped or else remained flat, uncovering a shift rather than a takeover.
"While Microsoft is gaining on Apple, the share growth is coming at the expense of players other than Apple, as Apple's share is growing too," Munster writes. "It is clear to us that Apple has captured the "cool factor" among high school students across America."
The inability to search the address book and phone number listings has stood out as one of the iPhone's most glaring omissions given that such capabilities have routinely been included out-of-the-box on most rival handsets.
At last month's iPhone Software Roadmap event, Apple inadvertently dropped hints that the feature would finally arrive as part of the iPhone software v2.0 due this June when a slide demonstrating the some of the update's features revealed an inconspicuous magnifying glass icon atop the phone app's alphabet search strip.
Although the first few external betas of the iPhone software v2.0 did not include the feature, build 5A240d released on Tuesday does according to Engadget, as evidenced by the below screenshots.
Also new to the latest beta is an iCal meeting invites folder, accessible via a drawer icon at the bottom of the iPhone's iCal application -- a button that was disabled in previous builds.
Blockbuster said to be developing Apple TV rival
Published: 11:00 AM EST "The device is believed to be a stand-alone product akin to Apple TV as opposed to embedding a Blockbuster-branded service in such existing devices as Microsoft's Xbox 360 or TiVo," reports Reuters. A spokesperson for the world's largest movie rental service declined to comment on the specific product, but acknowledged that the company was in discussions with numerous companies over products and services that would help it achieve its goal of providing ubiquitous access to its extensive movie rental catalog. Once content with serving customers only through its brick-and-mortar retail chain, Blockbuster's emerging vision is to deliver content through any and every means possible. This includes its stores, its mail order rental arm, in-store kiosks, online downloads, and portable content-enabled devices. "So it's not surprising that there are rumors out there," the spokesperson said. More specifically, Reuters said it believes the product will leverage Movielink, an online service acquired by Blockbuster for $6.6 million last year that allows users to rent, download, and watch flicks on their computers. It notes, however, that Blockbuster's push towards streaming video presents the risk that it will cannibalize sales at the company's retail chain, which has long been its bread and butter. The Dallas, Texas-based firm would also need a "significant investment in marketing and manufacturing" to stir awareness and compete in an already crowded set-top-box market, which has yet to be fully received by consumers. In addition to Apple TV, Blockbuster will also be forced to contend with rival online movie rental service Netflix, which said in January that it was teaming with electronics maker LG to develop its own set-top box for streaming movies and other programming directly from the Internet to high-definition television sets. Shares of Blockbuster are currently trading in the $3.20 range after falling some 17 percent to an all-time closing low of $2.69 after Apple announced in January that it too was launching a movie rental model through iTunes. |
Specifically, the firm takes issue with a marketing claim from the Mac maker that both the 20-inch and 24-inch iMac are capable of displaying �millions of colors at all resolutions." While this claim holds true for the current 24-inch model and previous generation 20-inch model -- both of which display 16,777,216 colors on 8-bit, in-plane switching (IPS) screens -- the new 20-inch iMac display is said to be capable of 98 percent fewer colors (262,144).
"Apple is duping its customers into thinking they�re buying 'new and improved' when in fact they�re getting stuck with 'new and inferior,'" Brian Kabateck, Managing Partner of KBK, said in a statement.� "Beneath Apple�s 'good guy' image is a corporation that takes advantage of its customers. Our goal is to help those customers who were deceived and make sure Apple tells the truth in the future."
While Apple describes the display of both the 24-inch and 20-inch iMacs as though they were interchangeable, KBK asserts that the monitors in each of the desktop systems are of radically different technology.
The new 20-inch iMac features a 6-bit twisted nematic film (TN) LCD screen, which the firm claims is the "least expensive of its type," sporting a narrower viewing angle than the display of the 24-inch model, less color depth, less color accuracy and greater susceptibility to washout.
Apple on its website says: "No matter what you like to do on your computer � watch movies, edit photos, play games, even just view a screen saver � it�s going to look stunning on an iMac."
However, KBK argues that the inferior technology in the 20-inch iMac is "particularly ill-suited [for] editing photographs" due to its limited color potential and the distorting effect of its color simulation processes.
"Apple is squeezing more profits for itself by using cheap screens and its customers are unwittingly paying the price," Kabateck said.
Apple last week agreed to a settlement in a similar class-action lawsuit brought on by two professional photographers, which charged that the company's Intel-based notebooks were only suited to display the "illusion of millions of colors through the use of a software technique referred to as 'dithering,' which causes nearby pixels on the display to use slightly varying shades of colors that trick the human eye into perceiving the desired color even though it is not truly that color."
The terms of that settlement were not made public.
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This included flagship outlets in Chicago, New York City, and San Francisco.
Staffers at some stores also appear to have been briefed ahead of time that other stores besides their own were also completely without supplies of the Apple handset. When contacting the Fifth Avenue store, the clerk noted that "all three New York stores" were without stock. At Miami's store at The Falls, one employee stated that supplies were "constrained" throughout all of Florida as well as in New York.
The sudden shortfall has been further confirmed by reports from AppleInsider readers. In several cases, their own investigations reported all stores in a given state running out, including Michigan, New Jersey, Pennsylvania, and Texas. Many if not all AT&T stores were also said to have run out of inventory.
Apple's online store for the US, usually a bellwether of overall supply, currently shows a 5-7 day shipping delay for iPhones regardless of model.
The latest check reveals a shortage that has only been exacerbated since it began last week on a smaller scale. International stores have fared better, though Apple France continued to show only the 8GB model as available. Austrian, Irish, and German stores list both models, though none of these currently allow customers to order the iPhone online.
Despite the pervasive issue, Apple has not provided an official explanation for its rapidly depleting iPhone offerings. The shortfall comes months ahead of new models predicted by analysts and is uncharacteristic for the modern incarnation of the Cupertino, Calif.-based electronics firm, which quickly recovered its inventories even from the initial iPhone shortage that followed the weekend after the product's launch in June 2007.
When pressed, one retail clerk in Las Vegas' Fashion Show Apple store would only venture that there was likely a mismatch between supply and demand.
"They're just popular," the worker said.
A recent higher-education survey cited by analyst Katy Huberty reveals that roughly 40 percent of college students say their next computer purchase will be a Mac, well ahead of Apple's current 15 percent market share in the demographic.
In the near term, this sets the Cupertino-based Mac maker up for a strong September quarter -- a three-month period that embodies the heart of the back-to-school buying season, where incoming freshmen, existing undergraduates, and universities all plunk down considerable sums of cash in order to invest in computer hardware for the coming school year.
"Longer term," Huberty said, "we see an 'aging phenomenon' that will put Apple in a more mainstream market share position as students enter the work force, much like Linux adoption in the 1998-2003 time frame."
She noted that as the Linux platform matured and developers entered the workforce, enterprise-level Linux adoption accelerated eightfold, with 16 percent of servers shipped in 2003 running flavors of the linux operating systems compared to just 2 percent five years earlier.
For Apple, which holds just shy of 3 percent worldwide share of the personal computer market, each incremental percentage point of share gain means billions, Huberty said; approximately 6 billion in yearly revenues, and a full dollar in per share earnings for investors.
The analyst maintained her Overweight rating on shares of Apple, with a $185 per-share Base Case scenario that assumes Mac unit share rises to 3.5 percent from 2.9 percent in the next 12 months, and that consumers continue to buy up into the Mac product family, providing the company with some gross margin leverage.
Huberty also outline a $225 per-share Bull Case scenario which assumes twice the operating margin expansion of her Base Case scenario for the 2008 calendar year, driven by 40 percent revenue growth from broader demand for mobile products and greater success in the international and enterprise markets.
"Consumer demand presents largest downside risk to estimates," she said. "[The] rate of new product innovation must be sustained to justify strong double-digit revenue growth expectations."
Apple seeks handwriting engineer for Mac OS X, iPhone
The listing for a position at Apple's Cupertino headquarters, spotted by Mac Rumors, asks for a veteran programmer of neural net code and pattern recognition who preferably has experience with writing in Apple's Cocoa programming interface.
A successful candidate would primarily improve the main operating system, Apple says in its description. However, this and future developments may branch out to include both the iPhone and "other applications," according to the company.
Handwriting technology has mostly been left untouched in Mac OS X since the launch of version 10.2 Jaguar in 2002, when the Mac maker added its Inkwell technology for pen tablets.
Apple doesn't list specific goals in its posting, but is known to be rapidly expanding the amount of research conducted into touchscreen technology beyond that already found in the iPhone and iPod touch.
The company recently filed a patent application for a next-generation surface that would allow curved input areas capable of recognizing a user's grip on a pen, and is still slated to introduce a multi-touch handheld later this year that would support more advanced commands than those found in the two devices already on the market.
AirPort Extreme Update 2008-001 for Tiger
Apple has issued a software update (1.3MB) for the AirPort Extreme hardware on systems running Mac OS X Tiger.
The update is said to improve the reliability of wireless connections for Intel-based Macs running version 10.4.11 or later.
Mac Pro EFI Firmware Update 1.3
Also released is an EFI firmware patch for early 2008 Mac Pro systems (1.76MB).
The refresh improves the stability of the newer computers and requires Mac OS X Leopard 10.5.2 or newer.
Tuesday, April 1, 2008
Apple developing full multi-touch Macs - report
Published: 10:00 AM EST
Mac maker Apple Inc. is in the early developmental stages of a personal computer system that will rely exclusively on its revolutionary multi-touch technology rather than traditional input devices, investment bank Piper Jaffray said Tuesday.
Mac maker Apple Inc. is in the early developmental stages of a personal computer system that will rely exclusively on its revolutionary multi-touch technology rather than traditional input devices, investment bank Piper Jaffray said Tuesday.
Piper on iPhone shortage as update sign; Acrobat 9 for Mac soon
Published: 07:20 PM EST
An investment note by Piper Jaffray calls the new iPhone shortage a sign of an impending new model. Also, Adobe will soon announce the next major version of Acrobat with new features, Sprint and Samsung have unleashed a direct iPhone rival, and a new report says Hon Hai will produce 10 million new iPhones.
Analyst: low iPhone supply likely sign of refresh
With stock of Apple's touchscreen cellphone running almost completely dry across the US, senior Piper Jaffray analyst Gene Munster said on Tuesday that the shortage pointed to an upgrade.
The low supply, verified across 20 stores in a separate check from AppleInsider's, gave an 80 percent chance that an update was coming "earlier than anticipated," according to Munster. There was also a 20 percent chance given that the low supply was evidence of a production problem.
A release in the near future would contradict a report issued on Monday by Munster himself, who called for a June release of a 3G iPhone, as well as those by several other analysts. If accurate, however, the device would probably be a similarly-styled replacement for the $400 model rather than a premium or heavily reworked version, he added.
The researcher also noted that Apple's iPhone growth, while unlikely to top 2 million iPhones shipped this quarter, was "a full 2-3 years ahead" of the iPod's, which didn't reach the same shipping volume until 2005.
Adobe Acrobat 9 to launch in weeks
Adobe is prepping a launch for its Acrobat 9 PDF creation tool within the next two months, AppleInsider has learned.
The new version will primarily extend some features of today's high-end versions to the mainstream. An ability to convert 3D files from AutoCAD and other programs to PDF files will be available in the Professional edition, for example. The software will also enable collaborating on documents from an Adobe server, similar to a web-based beta service launched on Monday.
However, a planned move to allow the creation of fillable PDF forms in the Standard edition will be limited to the Windows release; for Mac users, the option will be available only for the Professional edition, which should cost $200 more. Adobe will offer a free upgrade to anyone who buys a paid version of Acrobat 8 after version 9 is announced.
Adobe is expected to hold a briefing for the press later this month on its plans for the software, though those details will remain secret until late June.
Sprint next in line with iPhone rival
Adding to the growing ranks of all-touchscreen phones reaching US shores, Sprint has unveiled the Samsung Instinct.
The device is Sprint's first non-business device of its kind and dwells heavily on media playback and entertainment, but is said to have a few enhancements over its counterpart at AT in the Instinct's case, this will involve a $70 service with unlimited data.
Dow Jones estimates 10 million 3G iPhones to be made by Hon Hai
Furthering its own brief report late last week, Dow Jones now estimates that Hon Hai Precision Industry will ship at least 10 million 3G iPhones in the near future.
While a contract to manufacture the device had already been discussed in the earlier report, the company -- known as Foxconn in the US -- is now allegedly prepared to produce and ship large quantities of the device. The shipment by itself would match Apple's stated goal of selling 10 million iPhones from its June 2007 launch to the end of 2008.
The Taiwan firm is "just waiting for the nod from Apple," according to the report.
Neither Apple nor Hon Hai has offered to comment on the story.
An investment note by Piper Jaffray calls the new iPhone shortage a sign of an impending new model. Also, Adobe will soon announce the next major version of Acrobat with new features, Sprint and Samsung have unleashed a direct iPhone rival, and a new report says Hon Hai will produce 10 million new iPhones.
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With stock of Apple's touchscreen cellphone running almost completely dry across the US, senior Piper Jaffray analyst Gene Munster said on Tuesday that the shortage pointed to an upgrade.
The low supply, verified across 20 stores in a separate check from AppleInsider's, gave an 80 percent chance that an update was coming "earlier than anticipated," according to Munster. There was also a 20 percent chance given that the low supply was evidence of a production problem.
A release in the near future would contradict a report issued on Monday by Munster himself, who called for a June release of a 3G iPhone, as well as those by several other analysts. If accurate, however, the device would probably be a similarly-styled replacement for the $400 model rather than a premium or heavily reworked version, he added.
The researcher also noted that Apple's iPhone growth, while unlikely to top 2 million iPhones shipped this quarter, was "a full 2-3 years ahead" of the iPod's, which didn't reach the same shipping volume until 2005.
Adobe Acrobat 9 to launch in weeks
Adobe is prepping a launch for its Acrobat 9 PDF creation tool within the next two months, AppleInsider has learned.
The new version will primarily extend some features of today's high-end versions to the mainstream. An ability to convert 3D files from AutoCAD and other programs to PDF files will be available in the Professional edition, for example. The software will also enable collaborating on documents from an Adobe server, similar to a web-based beta service launched on Monday.
However, a planned move to allow the creation of fillable PDF forms in the Standard edition will be limited to the Windows release; for Mac users, the option will be available only for the Professional edition, which should cost $200 more. Adobe will offer a free upgrade to anyone who buys a paid version of Acrobat 8 after version 9 is announced.
Adobe is expected to hold a briefing for the press later this month on its plans for the software, though those details will remain secret until late June.
Sprint next in line with iPhone rival
Adding to the growing ranks of all-touchscreen phones reaching US shores, Sprint has unveiled the Samsung Instinct.
The device is Sprint's first non-business device of its kind and dwells heavily on media playback and entertainment, but is said to have a few enhancements over its counterpart at AT in the Instinct's case, this will involve a $70 service with unlimited data.
Dow Jones estimates 10 million 3G iPhones to be made by Hon Hai
Furthering its own brief report late last week, Dow Jones now estimates that Hon Hai Precision Industry will ship at least 10 million 3G iPhones in the near future.
While a contract to manufacture the device had already been discussed in the earlier report, the company -- known as Foxconn in the US -- is now allegedly prepared to produce and ship large quantities of the device. The shipment by itself would match Apple's stated goal of selling 10 million iPhones from its June 2007 launch to the end of 2008.
The Taiwan firm is "just waiting for the nod from Apple," according to the report.
Neither Apple nor Hon Hai has offered to comment on the story.
In a research note to AmTech clients on Thursday, analyst Shaw Wu said that Apple's Mac business has thus far shown signs that it may be recession proof. In particular, sales of the new MacBook Air sub-notebook are said to have seen a resurgence after tapering off for a few weeks following initial pre-orders.
"We believe MacBook Air could represent 20 percent and as high as 25 percent of Apple's portables business," Wu wrote. "We believe there may some cannibalization with MacBook Pro and MacBook, but overall, it looks like MacBook Air has been able to expand Apple's Mac opportunity.
Although Wu had been modeling Mac unit growth to rise 38 percent year-over-year for the company's second fiscal quarter ending March, he said his latest round of checks suggest growth could come in closer to 42 percent.
iPods, however, appear to be tracking relatively flat or down in terms of yearly growth, with the analyst estimating that Apple will wind up hitting the upper-end the 9.5-10 million unit range.
"It appears that the iPod shuffle price cut is having a positive impact on units," he noted.
Meanwhile, Wu's checks within the supply chain suggest that key components such as NAND flash memory, DRAM and hard disk drives are all pricing favorably compared to last quarter, which should help drive Apple's gross margin closer to 33.5 percent, considerably above management's guidance of 32 percent.
As a result, the AmTech analyst raised his estimates for the March quarter to $1.10 in per share earnings on revenues of $7 billion, up from $1.02 on $6.9 billion, driven by sales of 2.15 million Macs, 10 million iPods, and 1.5 million iPhones.
"While near-term trends look difficult with a looming recession and a slow-down in consumer spending, we continue to believe Apple is well-positioned to weather the storm better than most with its strong fundamentals," he wrote.
Reitzes joins Lehman
In related news, Lehman Brothers said Thursday that Ben Reitzes has joined its U.S. Equity Research Department to cover the IT Hardware sector and serve as Co-Sector Head of U.S. Technology, where he'll preside over coverage of Apple.
Reitzes' arrival at the firm comes after thirteen years at UBS and PaineWebber, most recently as the senior analyst covering the IT Hardware and Imaging Technology sectors as well as the Global Coordinator of the PC sector for UBS.
Amongst his highlights while covering Apple for UBS were early but ultimately accurate predictions that the company was developing an ultra-portable notebook employing flash memory, and that the iPhone was just the start of a mega multi-touch platform aimed at spawning a vast array of new devices.
At Lehman, Reitzes will have primary oversight of the IT Hardware, Software and Imaging Technology sectors with joint oversight of the Electronics Manufacturing Systems sector.
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Hard disk drive maker Seagate may try to rein in flash memory producers by filing lawsuits if solid-state drive (SSD) technology proves successful, according to statements made by the firm's CEO, Bill Watkins.
Speaking in an interview with Fortune, Watkins notes he is is "convinced" that two of the largest investors in SSD technology, Intel and Samsung, have infringed on Seagate patents that touch on storage interfaces with computers. The executive hasn't said why he has refrained from suing to date but is said by the magazine to be holding lawsuits in reserve if either Intel or Samsung pose serious threats to traditional magnetic storage.
This likely won't be necessary, the Seagate chief suggests. Watkins pans SSD-based notebooks like the MacBook Air as being too costly for what they deliver, which often involves sacrifices both of money and in absolute storage capacity for the extra speed and reliability. "Realistically, I just don�t see the flash notebook sell," he claims.
Both potential legal targets hope to dramatically reduce the cost of SSDs this year and in the future. Intel in particular has promised a 160GB drive by spring and is known to be pushing costs downwards.
Samsung has not commented on the matter, while Intel declined an offer to respond to Watkins' claims of patent infringement.
Adobe ships Photoshop Elements 6 for Mac
Adobe today began shipping Photoshop Elements 6 for Mac users.
The $90 package, revealed earlier this year, is the first Mac-native edition since version 4.0 and adds the ability to make adjustments using curves, walk through fixing images with a Guided Edit mode, and more easily pick out objects with a Quick Select tool.
Elements 6 requires a system running either Mac OS X Tiger or Leopard and can be purchased either as a direct download or physical copy from the Adobe Store.
Sirius, XM satellite radio providers receive DOJ approval
The two satellite radio carriers in the US are a step closer to becoming one, according to a decision made today by the US Department of Justice.
Following more than a year after the original proposal for the merger, the Department largely agreed with the two companies that a unified satellite provider was more a defense against other forms of digital music than an attempt to strangle the radio market through a monopoly. iPods and terrestrial radio are equal options for customers if they don't like what a combined Sirius/XM service would offer, the US government explained.
Traditional broadcasters and HD Radio supporters have contended both that the merger would constitute a monopoly and that it would exclude their own offerings from the market.
The merger will still depend on future FCC approval but may change the relationship of Apple to satellite services. Company head Steve Jobs once dropped discussions of a merger of iPods and satellite radio with Sirius, but at the time was allegedly willing to change his mind if the climate for satellite radio followed suit. Apple has since offered the Wi-Fi Music Store for the iPhone and iPod touch as its options for wireless music but does not have any streaming music options on its devices.
Mozilla criticizes Apple's Safari push on Windows
Apple's attempt to encourage Safari downloads on Windows by offering it as a regular update is simply "wrong," Mozilla chief John Lilly wrote this weekend.
Best known as heading up work behind the Firefox web browser, Lilly warned that many computer users are dependent on software developers to let them know what software they actually need. When they're asked to download a completely new program, it draws uncomfortable similarities with malware that often inserts unwanted code in the guise of a legitimate update, the company head argues.
Lilly notes that there are no complaints inherent against Safari itself or to the concept of granting access to other software through an initial download. However, he cautions that a mass rejection of the browser could affect the likelihood of iTunes users and other customers automatically receiving much more important downloads, such as security fixes.
"It undermines the trust relationship great companies have with their customers, and that�s bad � not just for Apple, but for the security of the whole Web," the Mozilla leader says.
If a client survey accurately reflects buying habits, Apple will have little to fear from a downturn in the US economy, according to new data collected by ChangeWave Research.
The analyst group notes that the percentage of respondents looking to buy a Mac has only dropped slightly from all-time highs set in January, with 31 percent of notebook purchasers (down 2 percent) and 28 percent of prospective desktop buyers (down 1 percent) intending to pick up a Mac.
Apple also continued to rate the highest for satisfaction among ChangeWave customers, with 53 percent saying they are "very satisfied" with Mac OS X Leopard compared to next-best Linux at 44 percent. Just 8 percent of Windows Vista Business said the same of their software.
Digg head claims more knowledge of 3G iPhone
In a terse message through the micro-messaging service Twitter, Digg founder Kevin Rose on Wednesday claimed to have received more information about a 3G-capable iPhone from a purportedly high-level vice president at a company that does business with Apple.
In contrast to his original source, which gave only a vague release window and mentioned video conferencing, the new contact narrows that timeframe to June and further suggests that the device will have some form of GPS navigation.
Again, Rose has had an inconsistent record with rumors but obtained legitimate information regarding the first-generation iPod nano just before its launch. The news also follows comments by a Gartner analyst who on Wednesday was reportedly aware of orders for 10 million 3G iPhones as well as past analysis predicting an upgraded phone by mid-year.
Amazon MP3 takes number two spot behind iTunes
Although it's been an option only since September, Amazon MP3 is now in second place behind iTunes in the US for downloadable music sales, USA Today says.
No independent explanation for the jump is available, though Amazon digital music chief Pete Baltaxe points to a larger DRM-free library of 4.5 million songs that allows all its music to work with any portable player, including iPods.
"They appreciate that everything is DRM-free and so comprehensive," Baltaxe claims.
In contrast, Apple has only 2 million unrestricted songs and only obtains major-label music from EMI versus additional support from Sony BMG, Universal and Warner at Amazon.
ASUS second after Apple to offer multi-touch trackpads
Apple's early, near-exclusive access to multi-touch technology in notebook trackpads may have already come to an end, according to one FCC filing.
The user manual for a variant of ASUS' upcoming Eee PC 900 points to "multi-finger gestures" that allow the miniature portable to both scroll with two fingers -- a staple of Apple's portable line since late-model PowerBook G4s in 2005 -- as well as to make pinching motions to zoom in or out while using certain Linux programs, including Adobe's PDF reader and OpenOffice. Until the revelation, Apple's MacBook Air and MacBook Pro were the only computers known to offer this last feature.
ASUS has said it will release the new Eee PC during April and will make it available in the US.
Security Update 2008-002 1.1
Apple on Wednesday issued a fix for Security Update 2008-002 to address a specific software problem.
Valid only for Mac OS X Leopard 10.5.2 (Client, Server), the patch mends reliability problems when using Aperture 2.0's "Printer Settings" button.
No changes to security have been made along with the fix, the company says.
Akin to a more advanced version of the company's Nike + iPod sport kit, the companion system would utilize a new software application for Macs and Windows PCs that would serve to "interview" the user via a series of dialogs.
The first segment of the interview process would poll the user on their fitness goals, desired activity level (moderate, advanced), fitness interests (such as jogging, pilates, and swimming), fitness goals (lose weight, firm and tone, and get back into shape), weight goals, desired workout schedule, and so forth.
A second segment of the interview process would then question the user about his or her health history (allergies, asthma, back pain, and diabetes), current medications, and family health history.
"The lifestyle companion system also can interview the user about non-health related topics, e.g., spirituality/religion, identity (e.g., sense of belonging), relationships, career, financial condition, environment, hobbies, interests, other personal information, and goals regarding the same," Apple wrote in one of the filings. "An identity (sense of belonging) interview may address, for example, the organizations to which the user belongs socially and/or professionally. A relationships interview can address, for example, the marital and/or familial status of the user. The relationship interview also can address the quality of the user's relationships with his/her family. A career interview can address, for example, the length of time the user has worked in the present job, the user's current occupational position, and/or the user's level of enjoyment of the user's occupation. A finance interview can address, for example, net wealth, credit situation, spending habits, etc. An environment interview can address, for example, the user's home, office, clothing, transportation, fitness memberships, access to exercise equipment, etc."
Once the interview process is completed, the computer-based application would create a profile of the user and a workout regimen based around their feedback on goals and fitness interests. For instance, a user interested in weight training would be provided a work out schedule broken down into warmup cardio exercises and a weight training session comprised of sets, reps and weight levels.
The regimen would then be synced to an iPhone or iPod touch, allowing the user to step through their predefined workout and track their progress while at the gym. In one of the four filings, Apple also suggests a number of hardware-based companion products consisting of sensors for real-time feedback, in addition to raising the possibility that future iPhones and iPod touch's would include their own assortment of built-in sensors.
"In one embodiment, the present invention can include a headset having integrated physiological sensors. The present invention also can include a sling having one or more integrated physiological sensors. The sling can secure a portable electronic device to a user's body or clothing," the company said. "The present invention also can include a portable media device having one or more integrated physiological sensors. In one embodiment, an electronic device of the present invention can accept data from multiple sensors, including one or more sensors that track a user's movements. The electronic device can be configured to condition data from physiological sensors using data indicative of the user's movements."
As a motivational tactic, the digital lifestyle system would also include a rewards system and a system for facilitating group activities in which users can pit themselves against their peers in terms of workout performance, similar to the way Nike + iPod users can challenge and compete against each other by uploading their workout summaries to nikeplus.com.
"Once the subordinate user has input data about his activities, the rewards system can determine the appropriate rewards to distribute to the subordinate user account based on the data and the rewards allocation parameters," Apple said. "A rewards system of the present invention also can permit a user to challenge one or more users to a competition. Based on data about the competitors' activities and user-defined allocation parameters, the rewards system can automatically distribute rewards to the user account(s) of victorious competitor(s)."
The four filings, each made on March 27, 2007, are credited to a number of Apple employees, including Glenn Gilley, Sarah Brody, and iPod chief Anthony Fadell.
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"This likely implies a launch announcement in [the second calendar quarter]," Craig says.
Apple is also likely to significantly increase its iPhone production compared to its most recent full quarter. While iPhone production during the holidays totaled 2.3 million, the Bank of America researcher estimates about three million 2G and 3G iPhones made during the spring quarter and a much larger eight or more million during the summer. Each additional million units sold could add about $400 million to Apple's bottom line, Craig notes.
Simultaneous reports on Friday supported the analyst's statements., with the Taiwanese Commercial Times paper alleging that bidding is underway for 3G iPhone manufacturing while Dow Jones ventured so far as to claim that Hon Hai had already won a contract for production of an advanced model.
The investigations of the supply chain have been enough to warrant a significant rethink of longer-term predictions for 2008. As Apple may now produce the same eight million iPhones in one quarter that analysts have been predicting for the entire year, previous estimates are now "starting to look too conservative," according to Craig.
The expert maintained existing forecasts for the rest of Apple's lineup. iPod shipments are estimated to drop by several percentage points year over year for the first quarter, dipping below 10 million units, while a combination of the MacBook Air and refreshes to existing portables is tagged as a likely upside for computer sales.
Last Memorial Day, AppleInsider cited sources in reporting that it appeared to be the end of the line for the itsy-bitsy Mac, which had seen limited adoption and an uncertain role during the first 24 months on the market.�
Since then, the product line has remained in a state of limbo, with subsequent updates consisting of minor component swaps that required little if any engineering effort.�
For the first time in nearly a year, however, people familiar with the matter tell AppleInsider there's new life in the Mac mini department, where a small team of engineers have recently been tasked with gutting the diminutive desktop and applying fresh internals.
Thanks partly to Intel's rapid phase out of previous generation Core 2 Duo mobile processors and associated components, the impending update will see the mini gain its most significant architectural overhaul since its transition from Motorola-made PowerPC processors to Intel chips back in February of 2006.
Among the improvements destined for the new lineup are 45-nanometer Core 2 Duo mobile chips starting at 2.1GHz with 3MB of shared L2 cache, an 800MHz front-side bus (up from 667MHz), and a step up to the same Intel GMA X3100 integrated graphics processor employed by the existing line of 13-inch consumer MacBooks.�
Apple's long-term plans for the Mac mini remain a bit of an enigma given the limited attention and resources devoted to the product line in comparison to the company's other personal computer offerings. Nevertheless, the update to Intel's 45nm architecture should assure the mini a seat within the Mac maker's product line for another 12 months at the very least.�
While those people familiar with plans for the Mac mini were unclear on a precise release date for the forthcoming makeover, the Penryn-3M-based systems reportedly remained within the engineering build stage as of mid-month.�
Also on tap from Apple in the not too distant future are a refreshed line of all-in-one iMac desktops which will similarly shed their 65nm, second-generation Merom chips for Intel's new Penryn-based models ranging up to the 2.8GHz Core 2 Extreme.
International resellers have recently begun clearing stock of existing iMac models in anticipation of the update.
The first offerings from Starz include two half-hour sitcoms, Hollywood Residential and Head Case, as well as four Anime favorites from Manga Entertainment : Tokko, Noein, Ghost in the Shell: Stand Alone Complex, and Tactics.
�I think they�re probably the best in episodic television,� Starz vice president Marc DeBevoise said of Apple during a panel on Monday. �Netflix is big in subscription, other people VOD.�
DeBevoise also hinted that his firm's vast catalog of fitness content, for which it is the largest seller, could be next to turn up on iTunes. �We have not even explored what to do with that digitally, to make as much money as we make on DVD and selling in the supermarket," he said.
Meanwhile, Rainbow Media-owned IFC on Tuesday also launched its first television content on the Apple download service. Initially, three series will be available, including The Whitest Kids U'Know, The Henry Rollins Show, and The Minor Accomplishments of Jackie Woodman.
The US version of the iTunes store now features over 600 television shows from 64 different television networks.
True to its word, the British Broadcasting Corporation has formally launched its iPlayer service for Apple's iPhone and iPod touch media players.
While still a beta, the feature is the first instance of the on-demand TV replay service to be available for a portable device. Visiting the site from a normal computer requires either Adobe Flash (for streaming) or a Windows PC (for downloads) for copyright reasons.
The UK media outlet explains that the Apple-friendly version works by streaming a 516Kbps H.264 video feed over the website; as it's limited to just a narrow set of devices, no Flash plugins or software development kit support is necessary. The bandwidth does mean Wi-Fi is necessary. "The iPhone's EDGE connectivity is too slow," says the BBC's digital media head, Anthony Rose.
The BBC has promised a Mac-native iPlayer sometime in 2008.
Gameloft vows iPhone games this year
Although the iPhone and iPod touch have gone without any native games from its launch until the present, Gameloft on Friday said it would publish a full 15 titles for the devices by the end of the year.
The French company is considered one of the click wheel iPod's premier game developers and recently hinted at iPhone development through a mockup video just weeks before Apple's iPhone SDK presentation.
id Software's Carmack impressed by early iPhone development
Best known as the technology pioneer behind Doom and Quake, id Software co-founder John Carmack has weighed in on the merits of Apple's iPhone development process.
Initially, the software proves promising with ways to test iPhone apps either on the actual device or in software emulation. The App Store on iTunes is also described as an essential component: the 70/30 revenue split is good compared to many mobile app stores, and the sheer scope of the App Store for reaching customers is a "more important aspect than a lot of people understand," he says.
Still, he notes, his longstanding connection to Mac game development hasn't won him any favors from Apple, which didn't provide an advance build as it did to EA and a handful of other teams.
"I think Steve is still pissed at me over some negative comments I made about iPod development tools a while ago," Carmack says.
Sir Paul's divorce only roadblock to Beatles on iTunes soon?
Of all the described obstacles to the Beatles' catalog launching on the iTunes Store this year, the one major issue left may be Sir Paul McCartney's divorce from Heather Mills, claims the British newspaper The Evening Standard.
Digital versions of the Fab Four's rock group are a double-edged sword for McCartney, according to the source. While posting the albums on iTunes would help pay for his divorce from Heather Mills -- providing as much as $403.5 million to be split between the group -- it may also lead Mills to demand a settlement of $60.5 million or more. She knows that the digital catalog will inflate McCartney's future income, the paper says.
After having struck a truce with Apple Inc. last year, the Beatles' label Apple Corps is known to have sped up the process of remastering the group's collection for digital stores with the aim of a release before the end of 2008.
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More specifically, the survey of 460 randomly-selected iPhone users last month found that nearly 50 percent have at one point added at least one application to the handset. Among those people who did add applications, the average person added 4.3 new programs, but only around 10 percent say they added 6 or more applications.
However, only 13 percent of those US iPhone owners say they've unlocked the device, suggesting that the upcoming release of iPhone software 2.0 and the official iPhone App Store will address the most controversial aspect of the handset facing US consumers since its release late last June.
A followup question on the most desired features appears to support that thesis, with more than 40 percent of respondents saying that want the ability to easily add third party applications. Better compatibility with Microsoft's Exchange e-mail server and a larger touchscreen were the second and third most requested features.
Overall, those responding to the survey were routinely satisfied the iPhone's music functions, touchscreen interface, general usability, performance, and email application. Battery life and wireless speed were not surprisingly the least satisfying aspects of the handset, with the Safari web browsing interface a somewhat distant third least satisfying.
In fact, the study found that the ability to check and read email -- not surf the web -- is the most frequently used non-voice function on the iPhone, which about 72 percent of users surveyed do on their iPhone at least once a day. Still, 55 percent said they strongly agree that the handset has increased their mobile browsing, despite about 40 percent reporting that the mobile version of Safari has trouble displaying some websites they visit, most notably those using Adobe Flash.
"Apple and Adobe are feuding in public over whether and how Flash can be made available on the iPhone. The dispute punishes users and is damaging to both companies," Rubicon analysts wrote in the summary of their survey findings. "Apple needs to continue improving the iPhone browser, and that means settling its dispute with Adobe."
The study also examined whether the iPhone actually causes people to pay more for mobile data, or if the device is just switching heavy users of mobile data to a new device. Respondents to the survey confirmed the former, reporting that their average monthly mobile phone bill was $78 per month before the iPhone purchase, and $97 per month after the iPhone -- an average increase of 24 percent, or $228 per year.
Based on those findings, Rubicon estimates that AT&T is generating about $2 billion in incremental yearly service revenues from the first three million iPhones sold in the US, with that figure set to increase as more iPhones are purchased and activated. A good chunk of that revenue -- or $1.64 billion -- is presumed to come from the 1.41 million (or 47 percent of iPhone owners) who say they switched to AT&T from another carrier in order to use the Apple handset.
In purchasing an iPhone, about 50 percent of users surveyed said they replaced a conventional mobile phone. Another 40 percent said they replaced a smart phone, with the remaining 10 percent saying they replaced nothing -- suggesting either that the iPhone is their first phone, or that they carry it in addition to a second phone.
Almost 24 percent of respondents said their iPhone replaced a Motorola Razr, while 13.9 percent said it replaced a Windows Mobile device, 13 percent a Blackberry device, 6.7 percent a Palm device, 4.1 percent a Sidekick device, and 3.9 percent a Symbian device.
Rubicon also noted anecdotal reports which appear to indicate that some 33 percent of iPhone users also carry a second mobile phone for traditional voice calling, or for other functions the iPhone doesn't perform well. Among those toting another mobile phone, the Blackberry was the most popular, carried by almost one iPhone user in ten.
The study also found that 75 percent of iPhone owners were existing Apple customers, most make more than average salaries, and half of are under age 30. It also showed that students are particularly heavy iPhone users, most consider themselves technologically sophisticated, and that approximately 60 percent feel their iPhone serves to displace some notebook functions.
"The second beta version of the iPhone SDK includes Interface Builder, Xcode IDE, Instruments, iPhone simulator, frameworks and samples, compilers, and Shark analysis tool," the company said on its iPhone developer website.
Thus far, the most significant changes appear to be the inclusion of a version of Interface Builder tailored specifically for the iPhone, as well as beta 2 of Apple's proprietary Xcode 3.1 integrated developer environment (IDE), which also serves as the primary IDE for Mac OS X-based application development.
For those unaware, Apple describes Interface Builder as an application for designing and testing user interfaces.
"Developers can use Interface Builder to create user interfaces that follow the Mac�OS�X human-interface guidelines by dragging user-interface elements from a palette of predefined controls and dropping them into the window or view they are configuring," the company says. "Interface Builder works closely with Xcode to provide a development experience that facilitates the concurrent but specialized development of an application's user interface and business logic."
The initial beta version of the iPhone SDK was released three weeks ago. It saw over 100,000 downloads from prospective developers and curious enthusiasts in its first four days.
Apple plans to release a finalized version of the SDK, along with iPhone software v2.0, in the June timeframe.
"Adobe has evaluated the iPhone SDK and can now start to develop a way to bring Flash Player to the iPhone," the statement reads. "However, to bring the full capabilities of Flash to the iPhone web-browsing experience we do need to work with Apple beyond and above what is available through the SDK and the current license around it. We think Flash availability on the iPhone benefits Apple and Adobe�s millions of joint customers, so we want to work with Apple to bring these capabilities to the device."
The statement reinforces the design limits set forth by Apple for its development kit for its handheld devices, which have so far complicated Sun's Java development as well as hopes to bring a host of other programs to the device. The iPhone maker currently restricts any third-party software from running in the background or launching executable code of its own, both of which pose immediate problems for an embedded program such as Flash.
Apple has also been selective about which features of its devices can be integrated with outside apps and has reportedly blocked access to music functions entirely for anyone but itself. A Flash application usable from its normal home on the web would require direct access to Safari and the ability to run side-by-side with Apple code.
Regardless of technical capabilities, Adobe has yet to overcome resistance from Apple chief Steve Jobs. The executive quashed short-term hopes for a Flash add-on to the iPhone by rejecting the idea of direct ports of either Flash Lite or a full desktop Flash port, alternately calling them too limited and too slow to work properly with the iPhone's hardware and software.
"While most investors view our estimate of 45 million iPhones in 2009 as outrageously aggressive, we are maintaining our estimate based on several factors," Munster wrote. "First, we expect Apple to introduce a 3G iPhone model with additional features in the next 3-6 months. We also expect Apple to offer an entire family of iPhones by January 2009 at the latest including lower priced models that decrease the average selling price (ASP)."
More specifically, the analyst expects a 3G model to arrive in June followed by a "perhaps more significant" introduction of a model by next year that will be priced between $200 and $300, addressing a more price sensitive market. As such, he expects iPhone ASPs to drop from $489 in 2007 to $365 in 2008 to $314 in 2009.
This pattern would mirror the path taken by Apple as it matured the iPod family, he said, where a slow by steady diversification saw the company enter lower price points with every new revision of the player. However, he noted that the iPhone's unit growth curve stands to be significantly steeper than the iPods, given that Apple sold more iPhones in the first two days of sales than it did in the first three quarters of iPod sales.
"And the company did not sell over 2 million iPods in a quarter until the iPod's third year of sales, whereas the company sold over 2m iPhones in the second full quarter of sales," Munster added. "In sum, we believe the iPhone is a full 2-3 years ahead of the iPod in terms of its historical growth pattern."
Compared to iPod units, which grew a radical 409 percent between Apple's fiscal 2004 and 2005, the analyst is modeling iPhone units to grow slightly slower at 304 percent between fiscal 2008 and 2009, given some uncertainty as to how quickly the company roll out cheaper models.
Munster's estimates also take into account the continued international rollout of the handset, which he believes will double the addressable market for the device every year for the next two years. With 3.7 million units having been sold through December via 6 carriers (who combined for a subscriber base of 153 million), he estimates the iPhone's penetration into this addressable market to be just 3 percent.
One key component of the international iPhone rollout is of course China, where market dynamics complicate Apple's business model of exclusivity, leading the analyst to believe the company will likely need to alter its terms in order to launch the device in conjunction with a carrier like China Mobile that sports over 370 million subscribers.
"We have spoken with people close to China Mobile and our conversations lead us to believe that Chinese carriers are unlikely to sign a revenue sharing agreement with Apple," he wrote. "This is due in part because of the 70 percent market share enjoyed by China Mobile. The bottom line is that the mobile phone market is less competitive in China than it is in the US and Europe."
As a result, China Mobile appears unwilling to pay the monthly revenue sharing of approximately $15 per month which Munster estimates other exclusive iPhone carriers are currently paying Apple. In time, that may force the company to alter its strategy of signing exclusive revenue sharing agreements with its partners in Asia, which he believes will enable it to sell the iPhone in China by the middle of next year.
In support of this theory, the analyst pointed to recent comments from chief operating officer Tim Cook, who revealed at an investor conference last month that Apple is "not married to any business model" and is instead "married to ... shipping the best phones in the world."
In the event that Apple does forgo its present revenue share model and exclusive carrier relationships, it would likely seek a one-time subsidy from each carrier per iPhone sold.
"We believe the early hype surrounding the launch of the iPhone enabled Apple to garner steep revenue sharing agreements for the 'must have' device from the initial carriers like AT&T, O2, and T-Mobile," Munster said. "However, as the iPhone becomes an established player in the mobile phone market and competitive offerings become available, Apple may not be able to command the exclusive agreements with high revenue sharing plans as it did initially."
The Piper Jaffray analyst maintains a Buy rating and $250 price target on shares of the Cupertino-based Apple.
For the purposes Time Capsule is designed, including Time Machine backups and simple file and print sharing, the speed advantages of Ethernet are less of a factor compared to the needs of users who want a blazing, hard wired RAID array supplying high speed Network Attached Storage.
All of Apple's recent AirPort base stations have included an Ethernet switch, which allows user to directly plug in devices using an Ethernet cable; the base station bridges those wired clients to any devices attached wirelessly, so all can appear on the same AirPort created network.
However, while the AirPort base stations support full speed Ethernet switching, the shared disk file serving capacity of Time Capsule and AirPort Extreme is not tuned to saturate a big Ethernet pipe. That means the effective speed of the base stations' wired networking jacks are not competitive with a standalone NAS or dedicated file sharing computer. The numbers below (and
Dutch, Mexican iPhone rumors; Mac hacked in contest; more
Published: 06:45 PM EST
Two independent reports claim to know when the iPhone will be available in Mexico and the Netherlands. Also, a report says Cirrus Logic has likely been tapped for the audio in future iPods, an inside job at an Apple store briefly stole 332 iPhones, Adobe released Photoshop Express, and a MacBook Air was first to fall in a major hacking contest.
Rumors point to iPhone for Mexico, Netherlands
Apple may be prepping two new international iPhone launches for the spring, according to separate stories.
The Mexico City newspaper El Universal alleged on Thursday that multiple dialogs with Apple support would have the iPhone launch on Mexican carrier Telcel in June, in time for Apple's planned version 2.0 firmware.
The device may be as much as a third more expensive in Mexico than in the US after factoring in taxes, the report added.
Meanwhile, Dutch Apple reseller The Innovators also posted teasers the same day for a special event to take place on March 29th at 11AM local time. The third-party store was mum on details but dropped hints that it would present on a product that had previously been unsold in the Netherlands and would make it easy to place calls.
While suggestive, the use of a reseller for a presentation would be uncharacteristic of Apple's past iPhone launches, which have only allowed iPhone sales through official carrier stores as well as dedicated phone stores such as the UK's Carphone Warehouse.
Analyst: Cirrus Logic to replace Wolfson in future iPods
Although Wolfson Microelectronics has only just been cut out of new iPods due this year, a successor is already in place, Jefferies analyst Adam Benjamin said Thursday.
Already known for its computer and set-top box audio chipsets, Texas-based Cirrus Logic was predicted as having won a position inside the fourth-generation iPod nano as well as the second-generation iPod touch. No direct sources are cited for the switch.
If confirmed, the part swap is nonetheless poised to boost Cirrus' business by as much as $15 million in the latter half of 2008 and up to $20 million more in 2009, Benjamin estimated.
Apple Store staff caught stealing 332 iPhones
In a relatively rare example of employee theft at Apple, two workers at the company's Rockingham Park store in Salem, New Hampshire were found by their supervisors to have stolen 332 iPhones.
Joshua Garrand and Christopher Nashed were arrested for stealing the handsets with the intent of reselling them at higher prices. At the official $399 price, the iPhones were worth $132,468 to the store, according to the local Eagle Tribune newspaper.
Local police described the case as unique in the history of employee thefts for the area.
Adobe launches web-based Photoshop Express
Belatedly fulfilling a promise to begin a migration to the web for many of its creative apps, Adobe on Thursday launched a public test version of Photoshop Express.
Considered a web-based alternative to basic, offline image editing programs such as iPhoto or Photoshop Elements, Express allows users to organize and publish a gallery of images as well as make simple changes, including crops and color fixes.
The web app is completely free to use and gives users 2GB of photo storage, but requires a browser with Adobe's own Flash 9 animation plugin installed. A paid service is forthcoming and should add more features as well as extra storage space.
Mac hacked first in security expo contest
Apple's track record on security was tarnished on Thursday when Mac OS X was the first operating system to be compromised in a hacking contest at the CanSecWest security conference in Vancouver, BC, Canada.
The mystery crack by Charlie Miller was dependent on visiting a website containing malicious code. The exploit took just two minutes to surface at the start of the day, which also invited guests to hack Linux and Windows systems.
The exploit was presented on the second day of the three-day conference and appeared only once the competition eased rules, permitting hacks to require user actions rather than the strictly automatic hacks that were allowed the day before.
Miller wasn't allowed to publicize how he accomplished the feat, which organizing firm TippingPoint said would be passed on to Apple so it can develop a fix. However, the coding expert received the more immediate rewards of a $10,000 prize as well as the system he had infiltrated -- a new MacBook Air.
Two independent reports claim to know when the iPhone will be available in Mexico and the Netherlands. Also, a report says Cirrus Logic has likely been tapped for the audio in future iPods, an inside job at an Apple store briefly stole 332 iPhones, Adobe released Photoshop Express, and a MacBook Air was first to fall in a major hacking contest.
Apple may be prepping two new international iPhone launches for the spring, according to separate stories.
The Mexico City newspaper El Universal alleged on Thursday that multiple dialogs with Apple support would have the iPhone launch on Mexican carrier Telcel in June, in time for Apple's planned version 2.0 firmware.
The device may be as much as a third more expensive in Mexico than in the US after factoring in taxes, the report added.
Meanwhile, Dutch Apple reseller The Innovators also posted teasers the same day for a special event to take place on March 29th at 11AM local time. The third-party store was mum on details but dropped hints that it would present on a product that had previously been unsold in the Netherlands and would make it easy to place calls.
While suggestive, the use of a reseller for a presentation would be uncharacteristic of Apple's past iPhone launches, which have only allowed iPhone sales through official carrier stores as well as dedicated phone stores such as the UK's Carphone Warehouse.
Analyst: Cirrus Logic to replace Wolfson in future iPods
Although Wolfson Microelectronics has only just been cut out of new iPods due this year, a successor is already in place, Jefferies analyst Adam Benjamin said Thursday.
Already known for its computer and set-top box audio chipsets, Texas-based Cirrus Logic was predicted as having won a position inside the fourth-generation iPod nano as well as the second-generation iPod touch. No direct sources are cited for the switch.
If confirmed, the part swap is nonetheless poised to boost Cirrus' business by as much as $15 million in the latter half of 2008 and up to $20 million more in 2009, Benjamin estimated.
Apple Store staff caught stealing 332 iPhones
In a relatively rare example of employee theft at Apple, two workers at the company's Rockingham Park store in Salem, New Hampshire were found by their supervisors to have stolen 332 iPhones.
Joshua Garrand and Christopher Nashed were arrested for stealing the handsets with the intent of reselling them at higher prices. At the official $399 price, the iPhones were worth $132,468 to the store, according to the local Eagle Tribune newspaper.
Local police described the case as unique in the history of employee thefts for the area.
Adobe launches web-based Photoshop Express
Belatedly fulfilling a promise to begin a migration to the web for many of its creative apps, Adobe on Thursday launched a public test version of Photoshop Express.
Considered a web-based alternative to basic, offline image editing programs such as iPhoto or Photoshop Elements, Express allows users to organize and publish a gallery of images as well as make simple changes, including crops and color fixes.
The web app is completely free to use and gives users 2GB of photo storage, but requires a browser with Adobe's own Flash 9 animation plugin installed. A paid service is forthcoming and should add more features as well as extra storage space.
Mac hacked first in security expo contest
Apple's track record on security was tarnished on Thursday when Mac OS X was the first operating system to be compromised in a hacking contest at the CanSecWest security conference in Vancouver, BC, Canada.
The mystery crack by Charlie Miller was dependent on visiting a website containing malicious code. The exploit took just two minutes to surface at the start of the day, which also invited guests to hack Linux and Windows systems.
The exploit was presented on the second day of the three-day conference and appeared only once the competition eased rules, permitting hacks to require user actions rather than the strictly automatic hacks that were allowed the day before.
Miller wasn't allowed to publicize how he accomplished the feat, which organizing firm TippingPoint said would be passed on to Apple so it can develop a fix. However, the coding expert received the more immediate rewards of a $10,000 prize as well as the system he had infiltrated -- a new MacBook Air.
Without citing sources, the Chinese-language Commercial Times reported Friday that Taiwan-based Hon Hai, which operates stateside under the trade name Foxconn Electronics, is currently in the bidding for the 3G iPhone contract from Apple.
Should Hon Hai successfully land the contract, it could ship an additional 10 million mobile handsets per year, the paper said.
However, a subsequent report filed by Dow Jones cited a person familiar with the matter as saying the Taiwanese assembler has already closed on the deal and will serve as the exclusive manufacturer of the next-generation Apple handset, which would presumably go into production soon.
Meanwhile, Gartner is attempting to clarify earlier statements about the 3G iPhone, specifically a claim by analyst Ken Dulaney that Apple placed an order for 10 million of the handsets.
The market research firm now admits that it's uncertain about the accuracy of that claim, saying that it has no solid information to suggest that a contract has been signed or that a definitive order has been placed.
"If Apple was to place an order, than 10 million would be a reasonable number," analyst Bob Hafner explained. "And we absolutely believe that in the next-generation iPhone 3G will be there."
For their part, both Apple and its exclusive US wireless provider AT&T have both made comments by way of their top brass to suggest that a version of the iPhone capable of running on third-generation wireless networks would hit the market sometime this year.
"We've got to see the battery lives for 3G get back up into the five-plus-hour range,'' Apple chief executive Steve Jobs said last September in response to inquiries over a 3G model at the UK iPhone launch. "Hopefully we'll see that late next year.''
Two months later, AT&T Inc. chief executive Randall Stephenson flat out stated that a 3G model was in the cards for 2008.
"You'll have it next year," he said while speaking during a November 2007 meeting of the Churchill Club in Santa Clara, Calif.
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However, a preliminary discovery reveals a Genres category under My Movies, letting owners browse by type.
The download represents the first minor upgrade to the Apple TV's firmware since February's Take 2 overhaul introduced a completely redesigned interface as well as support for iTunes movie rentals and streaming podcasts.
The 2.2MB Digital Camera RAW Compatibility Update 2.0 extends RAW file compatibility for Aperture 2 and iPhoto �08 for the following cameras:
Hasselblad CFV-16
Hasselblad H3D-31
Hasselblad H3D-31II
Leaf Aptus 54S
Leaf Aptus 65S
Nikon D60
Olympus E-3
Pentax *ist DL2
Pentax *ist DS2
Pentax K100D Super
Sony DSLR-A200
Sony DSLR-A350
The update also includes a lone security fix that was also included as part of a much larger security update released on Tuesday, which affects DNG image files.
"A stack based buffer overflow exists in the handling of Adobe Digital Negative (DNG) image files. By enticing a user to open a maliciously crafted image file, an attacker may cause an unexpected application termination or arbitrary code execution," Apple wrote. "This update addresses the issue through improved validation of DNG image files."
The security update is applicable for users of Aperture 2 or iPhoto 7.1.2 with iLife Support 8.2.
While negotiations for China may have gone cold, its nearby neighbor Singapore may already have lined up its iPhone launch months in advance, claims Channel NewsAsia.
The southeast Asian publication cites industry contacts who are reportedly aware that the city-state's primary carrier, SingTel, has "more or less sealed the deal" and will offer the phone in September for about $690 in Singapore dollars, or $497 US.
In a departure from its traditional model, however, Apple may allegedly drop its usual demand for a revenue-sharing model in the face of resistance from SingTel. Instead, the iPhone maker may opt for a scheme more familiar to cellphones, where the up-front price of the phone is subsidized by the carrier but the monthly revenues are that carrier's alone.
The belief is partly founded on statements by Apple COO Tim Cook, who said his company wasn't married to the revenue sharing deals struck in Europe and the US.
Neither Apple nor SingTel has commented on the claim.
Verizon takes national prize in 700MHz FCC auction
Verizon on Thursday was found to have scored a coup by winning a nationwide license to use part of the soon-to-be-vacant 700MHz spectrum through a Federal Communications Commission auction.
The win lets Verizon operate any wireless service it wants across the entire US on a slice of frequency that will be dropped by analog broadcast TV in 2009. The space has been sought after by wireless providers for the longer range and better indoors access compared to existing third-generation (3G) cellular access, which often require more towers for the same quality of service.
However, any service run by the American provider will need to obey open access rules for the particular wireless block that allow customers to bring any device and any software on to a future network created for that frequency. The rule was partly the work of Google, which both advocated for unrestricted devices and made a token bid to guarantee that the airwaves would allow use of its mobile software.
The iPhone's current provider, AT&T Mobility, also managed wins of its own but was chiefly limited to regional licenses in a different block without the same rule. In a response to the FCC announcement, AT&T pointed out that its wins would still cover about 95 percent of the US population.
Palm coasts on strong Centro sales, still takes loss
Palm on Thursday offered mixed news with the results for its latest quarter, which ended in February.
The three-month span represented the best ever for the company in terms of sheer unit shipments. According to the firm, over 833,000 phones shipped during the period, a 13 percent jump over the year-ago quarter. Much of that gain was attributed to the Centro, which at $99 is one of the most inexpensive smartphones in the US.
The Centro is now Palm's quickest-selling phone ever and appealed to newcomers to smartphones, said company president Ed Colligan, who noted that 70 percent of all buyers were graduating from more limited phones.
Even so, the smartphone maker swung from a $11.8 million net income in the same period in 2007 to a $31.5 million loss in 2008. The loss was exaggerated primarily by restructuring costs.
Palm last year hired former Apple executive Jon Rubinstein to rekindle its cellphone business, which has been hurt by poor sales of its more upscale Treo devices.
Apple, by contrast, sold 4 million iPhones between its June 2007 launch and January 2008.
Magazine: no talks for unlimited iTunes music
Notions that Apple is discussing unlimited iTunes access plans are "overblown," says an update on the situation by BusinessWeek.
Rebuffing Tuesday's claims by the Financial Times, the weekly magazine refers to well-positioned sources who claim that no talks are underway and that Apple has only "kicked around" the idea, which would have iPhone and iPod buyers optionally pay extra for unfettered downloads from the iTunes Store's music catalog.
Music label sources are also said to reject the claims. Traditionally, Apple has advocated a pay-per-track approach and has criticized subscription models.
Following the release of those improvements as part of iPhone software v2.0 this June, Gartner said it will endorse the handset under �appliance-level� support status, which permits the device to be used for PIM, e-mail, telephony and browsing applications. It would also deem the device fit to be used for other dedicated functions where the software is supplied by a third party, functionality is kept to a restricted set, the software supplier offers support for a backup platform, and IT development resources are not needed to program custom code locally residing on the device.
�In its initial release, the iPhone was, with few exceptions, an Internet tablet with browser-based applications as its main offering, however, the release of firmware 2.0 changes that, enabling enterprises to develop local code and create applications that do not depend on network capabilities,� said Gartner analyst and vice president Ken Dulaney. �The iPhone will thus match up initially in several segments against its main smartphone competitors � BlackBerry, Windows Mobile and Symbian Series 60.�
Earlier this month Apple announced an iPhone Software Developers Kit (SDK) that will allow third-parties to develop proprietary applications for v2.0 of the iPhone software. The Cupertino-based firm also said that it had licensed Microsoft's ActiveSync protocol suite, and was adding support for Cisco IPSEC and WPA2 security for Wi-Fi connections.
�By licensing Exchange ActiveSync and exposing its basic security policies, enterprises can provide sufficient security for iPhone during Exchange personal information manager (PIM) and e-mail use,� Dulaney said. �This will open up a huge market for the iPhone, which previously had been stymied by a lack of basic business security and application functionality. However, Apple must widen distribution and of course deliver what they have promised.�
iPhones trickling into the enterprise would also likely have a residual affect on Apple's brand awareness amongst corporate employees, which could spur additive sales, according to Gartner. But at the same time, the firm said this will push enterprises to invest in technologies with which they are unfamiliar and that require training and further investment.
�Management of the iPhone outside the Exchange e-mail/PIM application will require familiarity with new products such as Apple�s iPhone Configuration Utility," Dulaney said. "And enterprises should thoroughly review the platform�s management and security options to understand how they can control any consumer elements of the platform that may pose a risk."
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The results -- first revealed in an investor note from Pacific Crest Securities analyst Andy Hargreaves on Monday -- represent 60 percent unit growth and 67 percent revenue growth over the same period one year ago. At the same time, overall US PC retail shipments grew just 9 percent on a 5 percent increase in revenues.
Apple saw particular strength in notebook systems, which rose 64 percent in units and 67 percent in revenues, suggesting strong sell-through of the company's new MacBook Air, noted Hargreaves.
"Macbook Air sales appear to be additive to total sales, rather than replacing Macbook Pro sales," he said. "We believe a new set of corporate customers make up a meaningful portion of MacBook Air buyers."
Overall, the US retail segment combined for a 20 percent increase in notebook shipments on an 11 percent rise in revenues.
The Mac maker also saw robust demand for its desktop systems, which grew 55 percent on a 68 percent increase in revenues, compared to the overall retail segment which saw unit sales decline 5 percent on a 2 percent drop in revenues.
"Mac sales do not appear to be negatively impacted by macro environment," Hargreaves concluded. "[The] iMac continues to sell extremely well, with strong sales of larger screen sizes."
February 2008 US-based PC retail market share growth figures | Source: NPD, Pacific Crest Securities.
Meanwhile, sales of Apple's iPod digital media players remain somewhat limp, and just off their pace from one year ago.
In a separate research note from Piper Jaffray analyst Gene Munster, also issued Monday, it was noted that NPD retail sales data for the month of February suggest total iPod unit sales of 9.5 million to 10.7 million for the three month period ending March.
"Street consensus for March quarter iPods is 10.8 million, representing a 2 percent year-over-year increase; the midpoint of the 9.7m-10.5m range suggests a 4 percent year-over-year decline," Munster wrote. "We see this data point as a slight positive, given this range is a slight increase from what NPD data indicated after 1 month of data."
Both Hargreaves and Munster remain bullish on shares of the Cupertino-based Apple, with Hargreaves noting that the company's current valuation is particularly attractive with the stock trading at just 18 times fiscal year 2008 free cash flow.
"We�re excited about creating a vibrant third party developer community with potentially thousands of native applications for iPhone and iPod touch,� said Apple chief executive Steve Jobs. "iPhone�s enterprise features combined with its revolutionary Multi-Touch user interface and advanced software architecture provide the best user experience and the most advanced software platform ever for a mobile device."
Developers gain access to same APIs as Apple
The iPhone SDK will provide developers with a rich set of Application Programming Interfaces (APIs) and tools to create applications for both the iPhone and iPod touch. Starting today, anyone can download the beta iPhone SDK for free and run the iPhone Simulator on their Mac. Apple also introduced its new iPhone Developer Program, giving developers everything they need to create native applications, and the new App Store, which will allow those developers to wirelessly deliver their applications to iPhone and iPod touch users.
With the iPhone SDK, third party developers will be able to build native applications for the iPhone with the same set of rich APIs that Apple has been using to develop its own iPhone software, including programming interfaces for Core OS, Core Services, Media and Cocoa Touch technologies. Those APIs will allow developers to create applications that leverage the iPhone�s Multi-Touch user interface, animation technology, large storage, built-in three-axis accelerometer and geographical location technology to deliver innovative mobile applications.
Apple licenses Exchange ActiveSync from Microsoft
Apple also announced that it has licensed Exchange ActiveSync from Microsoft and is building it right into the iPhone, so that the handset will connect out-of-the-box to Microsoft Exchange Servers 2003 and 2007 for secure over-the-air push email, contacts, calendars and global address lists.
Built-in Exchange ActiveSync support also enables security features such as remote wipe, password policies and auto-discovery. In addition, the iPhone 2.0 software supports Cisco IPsec VPN to ensure the highest level of IP-based encryption available for transmission of sensitive corporate data, as well as the ability to authenticate using digital certificates or password-based, multi-factor authentication. The addition of WPA2 Enterprise with 802.1x authentication enables enterprise customers to deploy iPhone and iPod touch with the latest standards for protection of Wi-Fi networks.
Furthermore, Apple said the iPhone 2.0 software will provide a configuration utility that allows IT administrators to easily and quickly set up many iPhones, including password policies, VPN setting, installing certificates, email server settings and more. Once the configuration is defined it can be easily and securely delivered via web link or email to the user. To install, all the user has to do is authenticate with a user ID or password, download the configuration and tap install. Once installed, the user will have access to all their corporate IT services.
The Apple "App Store"
The iPhone 2.0 software release will contain the App Store, a new application that lets users browse, search, purchase and wirelessly download third party applications directly onto their iPhone or iPod touch, and will enable developers to reach every iPhone and iPod touch user.
Developers will be able to set the price for their applications -- or make their applications free -- and retain 70 percent of all sales revenues. Users can download free applications at no charge to either the user or developer, or purchase priced applications with just one click. Enterprise customers will be able to create a secure, private page on the App Store accessible only by their employees. Apple will cover all credit card, web hosting, infrastructure and DRM costs associated with offering applications on the App Store. However, all third party iPhone and iPod touch applications must be approved by Apple and no Apps will be authorized for distribution outside the App Store.
The iPhone development envoirnment
In addition to the rich set of iPhone OS APIs, the iPhone SDK also provides advanced tools for creating native iPhone and iPod touch applications including: Xcode for source code editing, project management and graphical debugging; Interface Builder with drag and drop interface creation and live preview; Instruments to monitor and optimize iPhone application performance in real time; and the iPhone Simulator to run and debug applications.
During the beta iPhone SDK program, a limited number of developers will be accepted into Apple�s new iPhone Developer Program and offered the ability to get code onto iPhones for testing. The Standard Program costs $99 (US) per year and gives members an iPhone SDK and development tools; access to pre-release iPhone software; technical support; the ability to get code onto iPhones for testing; and distribution of applications via the new App Store. The Enterprise Program costs $299 (US) per year. All developers will also be issued a digital certificate that will be embedded into their applications, assuring that Apple can track all applications and prevent malicious software from infecting users' phones.
In addition to these new iPhone network and security features, the beta iPhone 2.0 software provides several new Mail features such as the ability to view PowerPoint attachments, in addition to Word and Excel, as well as the ability to mass delete and move email messages.
Pricing & Availability
Apple plans to release the final iPhone 2.0 software, including the iPhone SDK and new enterprise features, as a free software update for all iPhone customers by the end of June.
Third party applications created for the iPhone will also run on the iPod touch, and iPod touch users will be required to purchase a software update to run these applications.
The free beta iPhone SDK is available immediately worldwide and can be downloaded at here. The iPhone Developer Program will initially be available in the US and will expand to other countries in the coming months. Apple is accepting applications beginning today from enterprise customers who would like to join the private iPhone Enterprise Beta Program.
Additional details and a full compilation of notes from today's presentation are available here.
More news from today's Apple event
Apple's iPhone takes on the Enterprise
Apple posts iPhone Software Roadmap event stream
Coming to iPhone: Instant Messenger, EA's Spore, SEGA games
Notes from Apple's iPhone Software Roadmap event
The Financial Times is now citing Sony Electronics chief executive Stan Glasgow -- the same executive who recently vouched for Sony-branded Apple TV competitor -- as saying talks are underway with Microsoft over adopting Blu-ray in the 360, making it more competitive with the Sony PS3, but at the same time generating incremental revenues for the Japanese electronics maker.
"Mr. Glasgow, speaking at a media dinner, added that discussions were also taking place with Apple, which has not offered Blu-ray drives on any of its computers so far and has focused on digital media via downloads and streaming through devices such as its Apple TV," the financial paper said.
The report adds corroboration to an AppleInsider report from last Friday, which noted that Apple and Sony were in discussions over slot-loading Blu-ray drives for a future generation of Apple's MacBook Pro notebook series.
People claiming to be familiar with the matter had said that Sony is prepared to deliver Blu-ray Combo Drives capable of reading and writing CD media, but not writing Blu-ray DVD media. Apple, however, is said to have only expressed interest in a SuperDrive variant that could also write Blu-ray discs.
Should Apple reach an agreement to offer the Sony drives as part of its Mac platform this year, it's likely to do so only as a build-to-order option. As noted by the Times, most models currently fetch around $399.
Glasgow, however, noted that prices should fall to $299 by this holiday shopping season and to about $200 next year.