The Apple Computer

Apple delivers movies to iTunes Stores in UK, Canada

2008-06-19T00:30:00.003-07:00

Published: 08:00 AM EST

Apple on Wednesday announced that movies from several major film studios are now available for sale and rent on its iTunes Stores in the UK and Canada.

Among the studios serving up films on the UK store are 20th Century Fox, The Walt Disney Studios, Paramount Pictures, Warner Bros. Entertainment, Metro-Goldwyn-Mayer Studios Inc. (MGM), Sony Pictures Television International and Lionsgate UK.

Apple said the service is already pre-loaded with 700 films available for rent or purchase, with titles available for purchase on the same day as their DVD release, including favorites such as �Hitman,� �I Am Legend,� �National Treasure 2: Book of Secrets� and �Into the Wild.� Over 100 titles are also available in high definition for viewing on a widescreen TV with Apple TV.

�We�re kicking off movies on the iTunes Store in the UK with over 700 films for purchase and rent,� said Eddy Cue, Apple�s vice president of iTunes. �We think customers in the UK are going to love being able to enjoy their favorite movies on their iPod, iPhone or on a widescreen TV with Apple TV.

In Canada, Apple said over 1,200 films are available for rent or purchase, including 200 titles in high definition. Movies are available from all the same studios as those in the UK, with the addition of those from Canadian film house Maple Pictures.

With iTunes Movie Rentals, once a movie is rented, it starts downloading from the iTunes Store directly to iTunes or Apple TV, and users with a fast Internet connection can start viewing the movie in seconds. Customers have up to 30 days to start watching it, and once a movie has been started customers have 48 hours to finish it�or watch it multiple times.

In the UK, iTunes movies are available at �6.99 for library title purchases and �10.99 for new releases. iTunes Movie Rentals are �2.49 for library title rentals and �3.49 for new releases, and high definition versions are priced at just one pound more.

In Canada, iTunes movies are available at CAN$9.99 for catalog title purchases, CAN$14.99 for recent releases and CAN$19.99 for new releases. iTunes Movie Rentals are CAN$3.99 for library titles and CAN$4.99 for new releases, with high definition rental versions priced just one dollar more.

Tidbits: retail blackout days; 3G iPhone ad filming; iPhone GPS

2008-06-19T00:30:00.001-07:00

Published: 07:55 PM EST

Apple has started to spread word of its own retail vacation blackout days. Meanwhile, the company's filming in Manhattan on Thursday was likely tied to one in Los Angeles a week earlier; the GPS chip inside the 3G iPhone has been paired with a supplier; and four teens have been permanently banned from Apple's international retail chain for extending the capabilities of an iPhone.

Apple retail blackout days

AT&T is blacking out vacation days for its retail staffers from June 15th to July 12, presumably in preparation of the 3G iPhone launch in late June. Apple, however, isn't asking the same of its store employees until mid-July, people familiar with the plans say.

Apparently, the Mac maker is expecting a flood of back-to-school shoppers starting the third week of July and running through the second week of August. As such, retail staffers in some regions are being told that back-to-back vacation days during that period are a no-no, as are multiple weekend absences.

The company's annual Back-to-School promotion will actually kick-off much earlier, and it's reported that this year's incentives will be even more compelling than last. Apple will be briefing its partners in higher-ed on the matter at 11:30 a.m. Pacific on Monday, meaning a formal announcement is likely that day or the next.

A tale of two Apple product shoots

We have a little bit higher conviction today that Thursday evening's filming outside the Apple Store Fifth Avenue in Manhattan was indeed tied to the upcoming 3G iPhone launch, and may have even been a continuation of a shoot that took place in Los Angeles last week (as first reported by our friends over at Gizmodo). Explanation follows:

In its report last week, Giz noted that it had it "on good authority that an iPhone ad is being shot today by a big name director." AppleInsider later noted that director was said to be David Fincher, an avid Final Cut Pro user and director of big-time flicks such as "Se7en," "Fight Club," and "Panic Room."

People familiar with the shoot in Los Angeles say Apple and its production crew built a replica Apple retail store interior on stage for the filming. It was said to be a typical production for the most part, until the "product" was brought on stage. At this point, all non-essentials were forced to vacate, leaving just the director, producer, props and camera assist crews.

One person on hand did not get the clearest of looks at the iPhone, but said "it looked pretty much like the current one."�Even so, "everyone knew they were working on the 3G iPhone commercial," that person added.

The set outside Apple Store Fifth Ave. | Image credits: The iLife.

Fast forward one week, and Apple's filming around what's arguably its most lavish retail exterior -- the giant 32-foot cube that sites atop its flagship shop on Fifth Avenue like a giant gemstone. Not much could be made of exactly what was going on by the folks at The iLife who were blogging the event, though there was bit of hoopla over some blurry photographs they took of black cases marked "Anonymous 5+4" making their way into the store.

Those cases, people familiar with the filming say, belong to production studio Anonymous Content and contained walkie-talkies used by the production crew during filming, not 3G iPhones

Ballmer: you can buy Vista and downgrade to XP for free

2008-06-19T00:16:00.007-07:00

Published: 08:00 PM EST

While Apple is encouraging its install base to upgrade to the latest version of the Mac OS X operating system, a new sales pitch by its Redmond-based rival to the north recommends that customers unhappy with Vista take a step in the opposite direction 'for free.'

Speaking at an event Tuesday in the nation's capital, Microsoft chief executive Steve Ballmer said his company's licensing policy allows for customers to install the previous generation of Windows should Vista not impress.

"Customers get both," he said. "I don't know how you can do better than getting both."

Baller's comments were in response to a question about whether Microsoft will continue to market retail copies of Windows XP for mainstream PCs beyond its scheduled June 30 expiration.

The Microsoft headman explained that his firm holds no such plans because any customer who wants to purchase XP after June 30 can just as easily buy Vista and trigger its built-in downgrade option.

Earlier this week, the software maker said it would extend the shelf life of XP for installations on "nettops" -- it's term for ultra-low cost desktop systems -- for an undetermined amount of time. That followed an earlier move to continue selling the six-and-a-half year old operating system for ultra portable notebook systems for up to two more years.

InformationWeek's Paul McDougall points out that a number of PC makers, including Dell, already offer business systems that have been "pre-downgraded" from Vista to XP. Though that raises the question, he says, about the accuracy of the sales figures Microsoft has provided for Vista.

"In April, the company said it had sold more than 140 million Vista licenses since the OS became available to the public early last year," he wrote. "But Microsoft did not indicate what percentage of those Vista licenses have been downgraded to XP."

Ballmer egged in Hungary last month.

Ballmer, 52, also told those in attendance at the event Tuesday that he expects to retire from running the world's largest software company within the next "9 or 10 years," at which time the eldest of his three children will be on the way to college.

Review: Netflix Player vs Apple TV

2008-06-19T00:16:00.005-07:00

Published: 08:55 AM EST

Roku's new dedicated box for streaming content from Netflix's Watch Instantly service offers a fairly large but somewhat eclectic variety of decent quality movies and TV programs at a very reasonable price, particularly for existing Netflix subscribers. While frequently pitted against Apple TV, the two products are actually more complementary than directly competitive. Here's how they stack up.

Roku's Single Trick

The Roku box currently does one thing: stream select Netflix titles from a library of content available for immediate viewing. Netflix says that around ten percent of its library of 100,000 DVDs is available for streaming from its Watch Instantly service. Using it previously required hooking up a Windows PC running Internet Explorer and Windows Media Player to your TV set. With the Roku box, you can tune into Netflix Watch Instantly streams a bit more conveniently with minimal setup.

The downside to the $99 Roku box's core simplicity that it requires adding yet another remote and video input to your home theater setup just to expand your potential movie viewing options. Netflix's service might be more attractive if integrated into a DVR such as the Tivo, or into Apple TV as a software module. Netflix plans to license its service to other hardware makers, so anything's possible.

Apple TV allows users to buy or rent movies online in a pay-per-view model, but it also serves as a link between the computer and the living room home theater and stereo, allowing users to show off their iPhotos libraries and stream audio from any iTunes computer to the stereo system, as well as shop for movies, TV, music, and music videos that can sync back to iPods and iTunes computers in the household.

View more high-quality Netflix Player unboxing and setup photos

Lots of Cheap Content

On the other hand, viewing streamed titles on the Roku box doesn't cost anything extra for existing Netflix subscribers; being able to immediately watch any of the subset of movies and TV episodes available for streaming at no additional fee is a pretty sweet deal. All of the iTunes movies and TV episodes available for Apple TV have a rental or download fee that can add up for users who love watching TV.

Larger Apple multi-touch devices move beyond prototype stage

2008-06-19T00:16:00.003-07:00

Published: 09:00 AM EST

There's a 50-50 chance that Apple will introduce new form factor multi-touch devices at its developers conference next week, ushering the company into the ultra-mobile computing space, one Wall Street analyst says.

"We believe there is a 50% chance that a new form factor will be introduced, marking Apple's entrance into the emerging "MID" or mobile internet device market," American Technology Research analyst Shaw Wu wrote in a report to clients Thursday. "Our sources indicate 4-inch and 7-inch touchscreen devices beyond prototype stage that are a cross between a Mac and iPod touch."

It's believed the analyst is referring to a long-running skunkworks project at Cupertino-based electronics maker, first reported by AppleInsider last September, aimed at producing a more capable, modern day reincarnation of its Newton MessagePad that will also dual as an Internet tablet and more.

Still, Wu hedges his bets somewhat on an introduction at next week's Apple Worldwide Developers Conference, explaining that "exact timing of production isn't clear." He added, however, that he believes "it is inevitable that Apple will bring more touchscreen devices to market" that will further leverage its trademark multi-touch technology first introduced on the iPhone.

More certain is the analyst on Apple's iPhone-related announcements for the conference. He said supply chain sources indicate at least two new models of the touch-screen handset will make an appearance, including a much anticipated version that will run on so-called 3G networks for $399 to $499, in addition to a revised 2.5G version that will sell for $50 to $100 less than today's $399 introductory price.

"Our sense is that Apple is more focused on driving volume compared to a year ago, raising the possibility of carrier subsidies as likely," the analyst told clients. "In terms of features, we are picking up on an improved virtual keyboard with haptics giving it a more tactile feel, GPS and improved location services, and thinner and lighter casing that is more durable and inexpensive to produce."

Wu defended his belief that Apple will continue to market a 2.5G iPhone by noting that 3G coverage is still relatively small and concentrated globally compared to 2.5G technology. In many parts of the world such as Latin and South America where the iPhone has potential with a high number of subscribers, "having just a 3G version to offer doesn't make much technical and economic sense," he said. "The components in a 3G phone are more expensive, not to mention consume more battery power and generate more heat."

The AmTech analyst also told clients that while WWDC has traditionally been a forum for Apple to introduce new Mac systems, that's unlikely to be the case this year due to a conflict in deployment schedules.

"While we believe it makes logical sense for Apple to introduce new Macs at WWDC, our sources indicate radically refreshed portable Macs most likely won't be ready for volume production until the September quarter," he explained. "We believe we could end up with a 'special event' in calendar quarter three to announce these new Macs."

Wu advised Apple investors that shares of the company are often volatile around keynotes by chief executive Steve Jobs, like the one set for Monday, but nevertheless reiterated his Buy rating and $220 price target.

"With new products widely anticipated, we do not have a good feel for how the stock will trade on new product announcements, which are sometimes 'sell the news' events," he wrote. "We would take advantage of weakness to add to positions."

Mystery Apple boxes; Safari JavaScript boost; thinner 3G iPhone?

2008-06-19T00:16:00.001-07:00

Published: 05:00 PM EST

Stacks of unmarked boxes are appearing at a Quanta distribution center just days before WWDC. Meanwhile, the WebKit team plans a major performance boost to JavaScript in Safari; the company has released a security configuration guide; and a report claims the 3G iPhone's dimensions are smaller than case makers have previously thought.

Masses of Apple boxes appear at Quanta depot

Whatever Apple is planning to unveil at its Worldwide Developer Conference next week, it's moving a large volume of products through its supply channels, Forbes's Brian Caulfield has found.

Acting on previous reports that Apple has shipped 19 deliveries overseas from Quanta, which is believed to be a current iPhone manufacturer, the journalist visited a Quanta facility in Fremont, Calif. that appears to be overflowing with Apple deliveries.

Despite being a large facility that processes the goods of multiple manufacturers, the location on Wednesday night had dozens of tall pallets of boxes that all reportedly belonged to Apple. Some of these were clearly iMacs, but 20 others placed side-by-side were wrapped in plain brown packaging.

These boxes could be any device, Caulfield warns, but employees at the Quanta building are said to be very active and also elusive: the shipping supervisor was "really busy" during one attempt to collect information, while another worker approached on the presence of iPhones said he was "not at liberty" to discuss what the manufacturer was shipping.

SquirrelFish to give Safari's JavaScript 60 percent boost

The team refining the WebKit engine behind Safari hopes to inject the renderer's JavaScript interpreter with a new high-speed platform, MacNN reports.

Called SquirrelFish, the engine switches from the basic engine currently in Safari, which simply walks through syntax, to a much more complex bytecode engine that avoids many of the code revisits and overhead as it deciphers JavaScript on a website.

Even though still in early testing with nightly builds of the Webkit test browser, the results are described as dramatic: in a SunSpider test of the scripting language, SquirrelFish runs 60 percent faster than Safari's stock interpreter.

There are no clues given as to when Safari will see the addition, but performance is expected to get better: the team is already happy but believes the current speed is "just the beginning."

Apple posts Mac OS X Security Configuration Guide

Further evidence that Apple is beginning to take security more seriously has surfaced this week in the form of the company's new Security Configuration Guides for Mac OS X Leopard, Tiger, and Panther.

Targeted at both advanced home and workplace users, the guides are billed as helping lock down Macs against most security threats but can compromise the computer in the hands of less experienced users. Any settings ought to be "thoroughly tested" before left alone, Apple warns.

Case makers caught off-guard by 3G iPhone change?

If one report is to be believed, prototype cases for 3G iPhones allegedly made by Griffin and others may be useless by the time the Apple device is on shelves.

iDealsChina claims that last-minute changes make the actual iPhone refresh 2mm (0.08 inches) shorter and 0.5mm (0.02 inches) thinner than originally thought, potentially leaving these companies with thousands of loose-fitting cases to either sell or destroy. A mockup provided by an insider purportedly shows proof of the end product's looks.

Notably, iDealsChina both provided the earlier Griffin leak and sells iPhone accessories, making it difficult to independently determine the authenticity of the report.

Photos of 2.8- and 3.2-inch iPhone-like touch panels surface

2008-06-18T23:46:00.005-07:00

Published: 01:00 PM EST

Images depicting a pair of touch-screens reminiscent but slightly smaller than those employed by Apple's existing iPhone and iPod touch have surfaced on the web, fueling speculation over whether the electronics maker has plans to introduce a smaller version of its phone or multi-touch iPods in the near future.

The photos, provided to iLounge, are of naked touch-screen components from Host Optical, a Taiwanese company that claims it's supplying the parts to Apple for the next-generation iPhone. It calls the parts "projected capacitance touch panels," and claims they contain technology that make them superior to those from Germany-based Balda used in the first-generation iPhone.

More specifically, Host claims the screens lack an aging effect, meaning they'll last longer and won't fade in sensitivity over the years. They're also said to be more robust and resistant to water and climates with high humidifies. However, even iLounge doubts the company's claims that the parts are destine for Apple's highly anticipated 3G iPhone, due to arrive next week.

"To be clear, we believe that there is zero chance that a 2.8� screen is going to be in Apple�s first 3G version of the iPhone, but as a component for an iPhone mini/nano, as well as a fourth-generation iPod nano, it makes a lot more sense," wrote Jeremy Horwitz. "Notably, Host�s displays place two and only two sensors off to the right of the ear speaker, a detail that doesn�t track with what we�ve heard about the 3G model."

Indeed, the vast majority of reports circulating on the Internet over the past few months have portrayed a next-generation iPhone with relatively the same exact footprint as the current version, the only disparity being some added tapering around the edges and opposing views over whether the model would be thicker or thinner.

Intriguing, however, is that on April 29th the Chinese-language Taiwan Economic News cited sources in saying that Apple's second-generation iPhone would be both lighter and more compact than the existing version. In its report, the newspaper specifically mentioned that the "LCD screen on the phone measures 2.8 inches diagonally, a downsize from first generation`s 3.5 inches."

View more photos and diagrams of the panels at iLounge

The growing consensus amongst people analyzing the flurry of next-generation iPhone reports is that Apple may possibly introduce two new models: a 3G model relatively the same size as the current iPhone at existing prices and a shrunken 2.5G model for considerably less.

Apple's OS X iPhone, Leopard banners show OS split pre-WWDC

2008-06-18T23:46:00.003-07:00

Published: 09:45 PM EST

Apple has unfurled its customary banners in the run-up to WWDC and is emphasizing the split between OS X iPhone and OS X Leopard in what promises to be a company-defining event.

While no graphics covered with black drapes have yet appeared at the Moscone Center venue that would hint at product announcements, Apple is making it clear that there are now two distinct operating systems under its wings -- an allusion to the diverging paths in its invitation to developers.

On one banner in Moscone's lobby, Apple refers to its conventional Mac operating system as OS X Leopard and touts the software as "the world's most advanced operating system," a claim it has made in the past. However, a second banner hanging overhead also promotes OS X iPhone as "the world's most advanced mobile platform," stressing both the newly-coined name for the software behind the iPhone and iPod touch as well as Apple's belief in its touchscreen software as the start of broader platform rather than just a narrowly-focused adaptation of its code.

Outside, Apple is making its occupation of the San Francisco locale through its more traditional if obvious means: giant Apple logos adorn the main windows, while small pennants and other banners surround the ground floors.

Visit MacNN for even more photos of Apple's early setup process for WWDC.

Me.com belongs to Apple; Vegas iMac deal

2008-06-18T23:46:00.001-07:00

Published: 11:25 AM EST

Apple's Internet service strategy has become clearer with the transfer of Me.com to the company. Also, Apple has struck a deal for iMacs in a Las Vegas hotel.

Apple's ownership of Me.com

Lending further support to notions that Apple will soon rebrand and overhaul .Mac, Daring Fireball and fellow technology pundits on Twitter have discovered that Me.com is now in Apple's hands.

On Saturday, records show the domain transitioned from any EasyDNS registration to MarkMonitor, a company that manages domain name services for commercial brands -- including Apple and its host domain. MarkMonitor was most recently used to park various MacBook Air-related domains by the electronics maker.

And while it's possible to abuse such registrations, a site report for Me.com points to the domain administrator as Apple's Ken Eddings, the same employee responsible for MobileMe.com as well as many other Apple-owned domains, including iPod.com. Currently, a simple NSLOOKUP command also confirms Eddings' link to the site.

The reason for the acquisition remains unclear, although the switch would give Apple access to a simpler domain than MobileMe.com for any future service; the company's most recent Mail and Safari updates have deliberately left placeholders for .Mac's new name that would allow a simple change.

Recent discoveries in the iPhone SDK have suggested that the future service will include tighter integration with iPhones and iPod touch players.

iMacs to populate Vegas hotel

In a more public deal, the upcoming Fontainebleau hotel in Las Vegas will partner with Apple for a unique addition to its suites, according to a fresh tip sent to TUAW.

The hotel's official brochure (PDF) notes an "innovative relationship" with Apple where each of the 3,889 rooms will have an iMac to "share memories and encourages personal expression." It also suggests a connection between the two companies for online booking and planning as well as interactive content at the hotel itself.

Few details beyond this are available, though the Fontainebleau opens the doors to its Vegas location in the fall.

Apple has a relatively strong presence in Vegas, operating two existing retail stores as well as a planned third store at Caesar's Palace.

Japan's SoftBank to offer Apple's 3G iPhone in Japan

2008-06-18T23:45:00.005-07:00

Published: 09:00 AM EST

SoftBank Mobile Corp., Japan's fastest growing mobile operator, announced Wednesday that it has signed an agreement with Apple to offer the iPhone to its customers later this year.

Given that the carrier operates only 2G and 3G networks, the announcement further supports expectations that Apple is on the verge of introducing a new version of its handset built to run on so-called 3G networks.

SoftBank Mobile Corp, Japan's No. 3 wireless operator, recently beat all of its peers in annual net mobile subscriber growth for fiscal 2007, adding 2,676,500 subscribers thanks to its White Plan featuring lower fees.

As of April, SoftBank maintained a combined subscriber base of 18,779,100, which included 14,453,100 customers on its 3G network and 4,326,000 on its 2G network.

Talks between Apple and the carrier date back nearly two years to May of 2006 when rumors had the two companies collaborating on the then unreleased iPhone.

Apple had also been in talks with NTT DoCoMo, Japan's largest mobile wireless carrier, though an agreement between the two has not been announced.

Rumor has UK's O2 offering 'free upgrade' to 3G iPhone, more...

2008-06-18T23:45:00.003-07:00

Published: 10:00 AM EST

Macworld UK is running with a rumor that British wireless carrier and exclusive iPhone service provider O2 is planning to lure customers to its network through hefty incentives such as a free 3G iPhone.

Citing "sources," the news site reports that the incentives aim to boost sales of the next-generation Apple handset, following so-so sell-through of the company's first generation phone in the UK ahead of recent discounts because it did not operate on the faster third-generation networks that are more common in the region than they are in the US.

Specifically, it's claimed that Apple will charge only �100 (~$193) for the 3G iPhone expected to be announce next week, but that O2 may offer the handset at absolutely no cost to new subscribers who sign up for its most expensive tariff (service plan), which fetches �75 and includes 3,000 minutes and 500 text messages.

According to the report, O2 may also cater to would-be customers who wish not to be locked into a service plan, offering them the new touch-screen device for the same �269 price as today's model under a contract-free, pay-as-you-go model.

What's more, Macworld UK adds that existing O2 iPhone customers may be lured into an 18-month contract extension with the promise of a free upgrade from their existing iPhone to the 3G model.

Macworld UK has not traditionally been rumor outlet and therefore the accuracy of the report is unknown. However, Ars essentially reported the same thing in regards to a full subsidy over two weeks ago.

Apple assigns new Senior VPs of iPhone Software, Mac Engineering

2008-06-18T23:45:00.001-07:00

Published: 05:00 PM EST

Apple Inc. last week extended its executive branch from ten to twelve members, creating a new position to oversee its iPhone software experience and appointing its first senior VP of Mac hardware development, AppleInsider has learned.

Scott Forstall, formally the vice president of platform experience and more recently vice president of iPhone software, was promoted to Senior Vice President of iPhone Software. He'll lead a team responsible for delivering the software found at the heart of the Cupertino-based company's iPhone handsets and report directly to chief executive Steve Jobs.

The Apple veteran holds a Masters in Computer Science from Stanford University and was one of the original architects of Mac OS X and its Aqua user interface. During his 11-year tenure at the company, �Forstall has been responsible for several releases of the operating system, most notably Mac OS X Leopard. Prior to Apple, he also worked alongside Jobs at NeXT, where he developed core technologies for the platform.

Joining Forstall atop the Apple's management team is Bob Mansfield, who was named the company's Senior Vice President of Mac Hardware Engineering, becoming the first public face of Mac systems development since the rocky departure of Tim Bucher back in November of 2004.

Butcher, who had held the position under the title of 'vice president' for just six months, later filed a lawsuit against the electronics maker for wrongful termination, claiming he was fired for discriminatory reasons and deprived of due compensation.

In the complaint, he said that Tim Cook, now Apple's No. 2 in charge, suddenly asked him to "go home" one day. Jobs later allegedly told him, "People sometimes think you are manic-depressive�. I'm not sure what I am going to do, but I think I am going to have to ask you to leave the company."

Apple did not name a successor for Bucher immediately and instead assigned a team of workers to oversee Mac hardware development that included Mansfield, in addition to Dan Riccio and industrial design chief Jonathan Ive. Though there were reports that UMAX founder Peter Mehring eventually succeeded Bucher, Apple never confirmed that information publicly.

The faces behind Apple's iPhone and Mac.
Pictured from left to right: Scott Forstall & Bob Mansfield.

Mansfield is believed to be the first 'Senior' Vice President of Mac Hardware Engineering and will report directly to Cook. Under his new role, he'll continue to lead an expansive team of hardware engineers that have delivered dozens of breakthrough Mac products, including the new MacBook Air and the all-in-one iMac.

Alongside their executive promotions, both Forstall and Mansfield were awarded a grant for 25,000 restricted Apple stock units worth more than $4.17 million as of May 30th, the day the two signed regulatory filings with the Securities and Exchange Commission. �The stock units are scheduled to vest in full on March 24, 2010.

Apple OS share rises; iPhone official for Spain; 3G iPhone shoot

2008-06-15T23:52:00.007-07:00

Published: 11:00 AM EST

Apple's share of the operating system market was up again for the month of May, while Microsoft's share continued to fall. Meanwhile, iPhone is now officially on its way to Spain. And a new "behind the scenes" movie from last weeks Apple filming reveals one of the key actors.

Apple's OS share rising

Apple's operating system market share rose nearly 6 percent during the month of May to 7.83 percent, according to access reports from web properties tracked by NetApplications. During the same period, Microsoft's combined share of the OS market dropped by just over a half a percentage point.

On the browser front, Safari also saw its share rise by a little over 7.5 percent to close out the month with 6.25 percent of the overall browser market. Meanwhile, Microsoft's Internet Explorer lost nearly a full percentage point of browser share, falling to 73.75 percent.

NetApplications is now also tracking the iPhone's share of the overall OS market, noting that it rose a mere 0.01 percent in May to 0.16 percent. However, a report from market research firm IDC released this weekend indicates the iPhone's share of the US cell phone market dipped considerably during the first quarter of the year to 19.2 percent. The Apple handset exited the fourth quarter of 2007 with a 26.7 percent share.

iPhone official for Spain

Telefonica-owned Movistar formally announced an agreement with Apple to distribute the next-generation iPhone in Spain. Like earlier carrier announcements in recent months, the carrier offered no further details other than to say the device would be available to its subscribers sometime this year.

Movistar's Francisco Jos� Santos Esteras had previously stated that his firm had reached an agreement with Apple to offer the iPhone in Spain. At the time, he said the carrier would have a temporary exclusive on sales of the handset in country lasting between three and six months.

Movistar caters to over 22 million customers in Spain and parts of Latin America.

3G iPhone commercial

AppleInsider reader DavidJr submits the following "behind the scenes" video he shot last week during the widely publicized filming outside Apple's flagship shop on Fifth Avenue in Manhattan.

It's widely believed the shoot was tied to the upcoming 3G iPhone launch and may have even been the setting for a commercial that was partially filmed out in Los Angeles.

Of interest from the new video is that it shows one of the actors -- a man in a suit -- being prepped as the camera zooms in.

Apple backs out of Apple Expo, but Paris store coming - reports

2008-06-15T23:52:00.005-07:00

Published: 01:00 PM EST

Apple appears to have changed its mind about attending this year's Apple Expo in Paris, France but is pushing ahead with plans to open an elaborate flagship shop in one of the most trafficked areas of the capital city.

Apple out of Apple Expo?

The French-language MacGeneration, which issued reports on both matters this week, notes that the Apple Expo website suddenly makes no mention of the Mac an iPhone maker as an exhibitor at this year's conference, scheduled to run September 17 - 20.

That wasn't always the case, according to the report. As recently as last week, the Apple Expo site was said to have listed Apple as the register of two of the conference's largest exhibition booths, or the same floor spaces it occupied last year.

Although the spaces once designated to Apple are now marked "reserved," MacGeneration claims to have it on good measure that Apple has indeed withdrawn from the conference. A statement from show organizers is expected within the week, according to the report.

Apple Expo was once the world's largest Apple trade conference, attracting more than 90,000 attendees a year during its prime. However, Apple's commitment to the show has waned over the past few years, with chief executive Steve Jobs canceling a keynote appearance in 2005 due to illness then failing to make up for it the following year.

Attendance fell to 54,000 last year as Apple, facing last minute delays in launching the iPhone locally, was unable to show off the touch-screen handset during the conference.

"This is a sad news because this year is the 25 birthday of Apple expo," MacGeneration's Christophe Laporte told AppleInsider. "[It's] really hard to imagine an Apple expo next year."

Apple flagship @ Carrousel du Louvre

In what may be some solace to French Apple enthusiasts, a second report adds that Apple has just received the go-ahead from regulators to open an Apple Store at�Carrousel du Louvre in Paris. Though no timeframe was specified, the flagship store will reportedly span some 7,700 square feet over two floors.

The Louvre, a historic monument and one of the world's most visited museums, attracts over 9 millions visitors each year, 40 percent of which are said to be tourists.

Still, Apple is more than a year late in tackling the French retail market based on a series of comments from members of its leadership over the years. In 2005, Jobs was reported to have told a visitor at the Apple Store Regent Street in London that the company would open its first store in France in 2007.

It's believed Jobs was referring to plans to open an outlet along Champs Elys�es, the most prestigious and broadest avenue in Paris. Senior Vice President of Apple Retail, Ron Johnson, has previously named Champs Elys�es one of five "key locations" in the world where he said Apple needed to operate a retail store. It's unclear why plans for the store fell through.

Analysis: Apple shares see average 4% boost around major events

2008-06-15T23:52:00.003-07:00

Published: 09:00 AM EST

With Apple's annual developers conference rapidly approaching and expectations for a 3G iPhone launch at the conference running high, Piper Jaffray analyst Gene Munster has taken a look back at how shares of the company have faired around similar events.

Specifically, the analyst examined the stock's performance around the last 14 product launch events dating back to the 2004 introduction of the iMac G5 at the Apple Expo in Paris -- a trade show the company is believed to have ducked out of this year for unspecified reasons.

On average, he found shares traded down 0.7% the day of the event, up 0.4% from the day before to the week after an event, and up 4.2% from the week before to the week after an event.

The two largest gains came around the Macworld 2007 iPhone announcement and the Paris Expo 2004 iMac G5 announcement, when shares rose 15.9% and 15.1%, respectively, from the week before the events to the week after.

Meanwhile, the two biggest slides followed the company's 2005 WWDC announcement that it would transition to Intel chips and the 2008 Macworld introduction of the MacBook Air. Shares fell 11.5 percent and 9.1 percent, respectively, during the two weeks surrounding those events.

In his report, Munster said he believes Apple's efforts during 2008, including this month's expected launch of a 3G iPhone, simply represents the groundwork for 2009 to be a breakout year for the iPhone.

"The bigger picture is beyond the 3G iPhone," he wrote. "We are bullish on the iPhone in 2009 based on our belief that there will be a family of iPhones by January of 2009, availability of 3rd party apps, global distribution, and carrier subsidies."

For the next month or so, he expects that investors will focus on initial 3G iPhone sales performance but then quickly shift back the Mac, which currently stands as Apple's biggest growth driver, with sales rising some 50 percent in April, according to the latest market data from IDC.

"While Mac units will likely not finish the quarter up 50%, we believe the April NPD points to June quarter Mac upside," Munster wrote. "The bottom line: while the Street is aware that Apple is gaining market share, we believe the magnitude of the shift is being underestimated."

The analyst reiterated his Buy rating on shares of Apple with a price target of $250 per share.

Adobe previews Creative Suite 4.0 with new beta releases

2008-06-15T23:52:00.001-07:00

Published: 10:00 AM EST

Adobe on Tuesday offered a sneak peek at the next release of its Creative Suite design bundle by releasing limited public betas of new versions Dreamweaver, Fireworks and Soundbooth.

The San Jose-based software developer said the Dreamweaver beta for Web design and development, the Fireworks beta for prototyping, and the Soundbooth beta for creating and editing audio, demonstrate a new direction for Creative Suite in which new features and technologies will simplify and streamline design and development workflows across all media types.

�Dreamweaver, Fireworks and Soundbooth are the major applications we�re unveiling as public betas before the next release of Creative Suite,� said David Burkett, vice president of product management for Adobe Creative Suite. �This early release software gives our loyal customers a taste of the radical workflow enhancements that we have in store, as we redefine how designers and developers collaborate to deliver stand-out digital experiences.�

Dreamweaver CS4

Adobe said the Dreamweaver public beta includes a new Related Files Toolbar and Code Navigator feature that allows users to dive deep into complex pages that include HTML files, links to JavaScript documents and integrated XML data. Users can see related files in the Related Files Toolbar and with Code Navigator make changes to code that appears in various parts of a document just with one update.

The update to Dreamweaver also features a new Live View Mode, which is based on the open source rendering engine Webkit from Apple, and enables users to see content in real-world, real-time environments without having to leave Dreamweaver to preview in a browser. The feature also gives users the ability to freeze JavaScript language to debug interactive pages as well as view and interact with Flash content.

Fireworks CS4

Meanwhile, Adobe said fresh features in the Fireworks beta include a new user interface that is now consistent with other applications within the Creative Suite, making it easier for users to switch between applications that now have a universal look and feel. In addition, Fireworks beta now allows users to export design comps as high fidelity, interactive, and secure Adobe PDF documents for enhanced client communication.

Fireworks beta is also now compatible with Adobe AIR, HTML, Adobe Flash and Adobe Flex Builder so users can create their design once and deploy to whichever application platform is required by clients.

Soundbooth CS4

For its part, the Soundbooth beta showcases a host of new features aimed at allowing creative professionals to complete their audio production tasks more efficiently, including the new multiple track support which allows users to edit multiple audio clips on a number of tracks, and the new ability for users to match volume levels across audio files.

Also included is the capability to preview MP3 compression settings before saving them and a new speech recognition technology that lets users create transcripts of dialogue tracks quickly and search them for words and phrases within a timeline.

How the betas work

Adobe says the three betas, once downloaded and launched, will be active for 48 hours after which time only CS3 customers will have extended access. Existing CS3 license holders will be able to use their CS3 product serial numbers to unlock the betas and use them for free until the next version of Creative Suite becomes available.

Adobe added that the betas will give users an opportunity to deliver feedback to the company, via Adobe Labs, for future product development.

Native iPhone apps Monday; multi-carrier Singapore; iPod lead solid

2008-06-15T23:51:00.003-07:00

Published: 05:55 PM EST

The first third-party native iPhone apps may be ready as soon as Apple makes its version 2.0 iPhone firmware available, according to a report. Also, a job posting hints that SingTel won't have an exclusive deal in Singapore, and Lehman Brothers notes that Apple continues to track above expectations for its iPod shipments despite a seemingly weak market.

iPhone 2.0, native apps to show at same time?

If a source at a firm developing iPhone software is correct, iPhone 2.0 users will have a very short wait before they can start downloading third-party native apps for the device, according to CNET.

The alleged insider at the programming house says the app will be ready as of Monday and the start to the Worldwide Developer Conference, alluding to a potential live launch of the Apple App Store necessary to download the code.

This source also appears to corroborate firmware leaks and other rumors that suggest the upcoming iPhone hardware will include GPS support for locating itself in real time.

At least one rumor has posited that Apple will announce immediate availability of a new iPhone for at least some regions next week, when Steve Jobs takes the stage for the WWDC keynote.

Job listing suggests multiple iPhone carriers in Singapore

SingTel's iPhone rights in Singapore won't be exclusive, an Apple job listing for a Lead Carrier Certification Engineer reveals.

The American company's posting asks for an engineer who would coordinate the approval of "Cellular Carriers" in the city-state.

Apple is known to alter its job requirements depending on whether or not it expects one or more carriers to offer the iPhone in a given region. The company's Australian job listings quickly proved accurate while also suggesting that Mexico would be confined to a single iPhone-ready carrier in the near future.

Lehman: iPod thrives in a down market

While the overall MP3 market is down, Apple's iPod sales continue to climb, according to a new investment note from Lehman Brothers.

Analyst Ben Reitzes notes that Apple's year-over-year retail sales for the last week were up a few percentage points while the rest of the market declined five percent, suggesting the company is extending its lead over rivals. The quarter as a whole has Apple up a few percentage points in line with the rest of the industry and tentatively puts Apple ahead of cautious estimates.

"We continue to believe this data is slightly more positive than expected for Apple and indicates to us that iPod sales remain relatively stable despite overall subdued consumer demand and risks to the economy," Reitzes says, noting that eight out of the ten top-selling MP3 players at Amazon were iPods as of Monday.

The expert adds that there are no immediate signs of a rundown in stocks of iPods at Best Buy, a location Lehman is testing as a gauge of iPod supply levels and thus any imminent signs of an upgrade to the media player line.

HBO shows arrive on iTunes starting at $1.99 an episode

2008-06-15T23:51:00.001-07:00

Published: 08:30 AM EST

Confirming unofficial reports earlier this week, HBO and Apple on Tuesday formally announced that television programming from HBO is now available for purchase and download on the iTunes Store at prices between $1.99 and $2.99 an episode.

Among the offerings are Emmy Award-winning shows "The Sopranos," "Sex and the City," "Deadwood" and "Rome," as well as the critically acclaimed hits "Flight of the Conchords" and "The Wire."

"We're thrilled to bring this incredible lineup of programming from HBO to the iTunes Store," said Eddy Cue, Apple's vice president of iTunes. "These are some of the most talked about television shows ever, as well as some of the most requested by our customers."

HBO shows purchased and downloaded from the iTunes Store can be viewed on a Mac or PC, iPod nano with video, iPod classic, iPod touch, fifth generation iPod, iPhone or on a widescreen TV with Apple TV. "Sex and the City," "The Wire" and "Flight of the Conchords" are priced at $1.99 per episode, and "The Sopranos," "Deadwood" and "Rome" are priced at $2.99 per episode.

iTunes customers can also choose to purchase entire seasons of their favorite programs, and in preparation of the May 30 premier of the HBO film "Sex and the City: The Movie," fans can choose any or all 94 episodes from the entire six seasons of the program.

In addition to being the world's largest online music store, the iTunes Store is also the world's most popular online TV store with a catalog of over 800 shows (over 20,000 episodes). To date, the service has sold over 150 million TV episodes.

Apple on Apple Expo pullout; more on 3G iPhone shoot; .Mac outage

2008-06-05T23:33:00.003-07:00

Published: 02:00 PM EST

Apple has confirmed that it forgo this year's Apple Expo in Paris. Meanwhile, more details of the company's 3G iPhone commercial shoots are surfacing. And Monday's .Mac outage has added to speculation that a re-branded service may be imminent.

Apple says no need for Apple Expo

Apple set to serve up first builds of Mac OS X 10.5.4

2008-06-05T23:33:00.001-07:00

Published: 04:00 PM EST

Apple, less than a week away from its annual developers conference, is preparing to begin widespread testing of Mac OS X 10.5.4, its fourth maintenance and security update to the Leopard operating system, AppleInsider has learned.

People familiar with the matter say developers could have the first pre-release copies of the update in their hands by week's end. It's almost a certainty that the beta software will surface by the company's developer's conference next week, they add.

While it's unclear exactly what enhancements Apple has planned for Mac OS X 10.5.4, it's possible the release could include tie-ins specific to the upcoming 3G iPhone and iPhone Software v2.0, or the much rumored rebranding of the company's .Mac internet services. Embedded support for the impending launch of Penryn-based Mac mini's is also likely.

Apple just recently released Mac OS X 10.5.3 following more than two months of internal development. The mammoth update weighed in at over 420 megabytes and packed well over 200 bug fixes. However, it left much to be desired for users experiencing graphics glitches on their Mac notebooks and professionals who rely on Adobe's Creative Suite 3.0.

Specifically, users of MacBooks and MacBook Pros report that redraw issues persist in key programs even after the 10.5.3 update, particularly in movie players or Apple's own iTunes app. The bugs often distort or block out entire window views as well as cause momentary blackouts in videos, all of which can be seen in this video.

Many of the affected users say the glitches first appeared after installing the "Leopard Graphics Update" that Apple released alongside Mac OS X 10.5.2 in February.

Meanwhile, visitors to support forums for both Adobe and Apple report that after upgrading to Mac OS X 10.5.3 they are inable to properly save files from InDesign, Photoshop, and other CS3 programs to a location on a remote server.

The CS3 files reportedly become corrupt, which prevents them from being recognized properly. Some users have report success in temporarily defaulting to "Save As" to register their changes rather than using the standard "Save" command.

Apple Back-to-School promo to offer free 8GB iPod touch

2008-06-05T22:41:00.003-07:00

Published: 02:00 PM EST

Apple on Tuesday will formally announce details of its 2008 Back-to-School promotion, which will offer a free 8GB iPod touch to students who purchase a qualifying Mac.

People briefed on the promotion Monday confirm that this year's incentives will be the electronics maker's most compelling ever, offering a rebate good for a $299 8GB iPod touch, as was first reported by AppleInsider last week.

"We've already ordered lots of iPod touches to be ready for [this] week," said one person familiar with the promotion. That person added that students will also have the option to apply the $299 credit towards the purchase of a higher capacity player, namely the $399 16GB iPod touch or a $499 32 GB iPod touch.

MacRumors is also confirming that a free 8GB iPod touch will be the highlight of the promotion, adding that students could alternatively elect to receive a $199 iPod nano for whatever reason.

The largest incentive previously offered by Apple came last year in the form of a free $199 4G iPod nano. However, the company was motivated this year to boost the value to the equivalent of its cheapest iPod touch as a surefire means to rapidly grow the install base of its multi-touch platform ahead of this month's App Store launch. The more iPhones and iPod touches in the hands of consumers, the larger the target audience for third party application developers.

In order to participate in the program, students will need to purchase a qualifying Mac -- MacBook, MacBook Pro, MacBook Air, iMac, or Mac Pro -- at the same time they purchase the 8GB iPod touch. Educational discounts are also applied as part of the promotion, reducing costs even further.

Official details are expected on Tuesday (tomorrow) morning. Previous Back-to-School promotions have run through the first half of September.

Update: The promo has now been announced.

Complexity of Apple retail stores revealed by permits

2008-06-05T22:41:00.001-07:00

Published: 04:00 PM EST

(ifoAppleStore) The complexity of an Apple store is visible to visitors, but beneath the structure of stainless steel, glass and stone is another level of complexity that is just as important. City permit records show that the electrical, plumbing and other systems inside the retail outlets are extensive -- and expensive.

For instance, the new Boylston Street (Boston) store has 550 lighting fixtures, 224 electrical receptacles and 25 switched outlets, consuming a maximum of 1,200 amps, according to the permits. That�s enough current to power 12 average-sized homes.

The store also has 17 motors for various air conditioning and elevator operations, and a 200 KVA gas-fired generator to supply electricity if the utility power fails. Meanwhile, the fire alarm system consists of 97 different detection and initiating devices, and has 37 alarms to alert the public.

Additionally, city permits show the store to have 51 security devices, 94 data outlets and 90 "telecommunications" devices. In total, Boylston Street store's electrical installation is valued at $971,000, according to an application filed Apple to allow contractors to perform the electrical work.

The store�s plumbing is equally complex: three water closets, one kitchen sink and four lavatories in the basement, along with one hot water heater, slop sink, one urinal and one drinking fountain. Two boilers in the basement connect to the HVAC system, supplying a maximum of 1�million BTUs, a measure of the system�s capacity to heat or cool.

The store�s video surveillance system uses 36 cameras, according to the documents, which safeguard both the store�s public and non-public areas.

Even the work permits themselves came with a high pricetag: $11,590 for the permit covering the installation of temporary electrical service during construction, and $80,900 for the permanent electrical work permit. The closed-circuit TV permit was $20,700, the plumbing permit $17,000, and the gas fitting permit $12,000.

Apple's latest flagship shop on Boylston Street in Boston, Mass.

Overall, some estimates put the total cost of the Boylston Street store at nearly $6 million, including $236,000 to demolish the original building on the site.

Gary Allen is the creator and author of ifo Apple Store, which provides close watch of Apple's retail initiative. When Gary isn't busy publishing news and information on Apple's latest retail stores, he finds himself hanging out at one.

Roku's Netflix Player vs. Apple TV: unboxing and first impressions

2008-06-05T20:31:00.003-07:00

Published: 01:00 PM EST

Netflix and Roku are stepping up to the plate with a media hub that promises a much less expensive way to watch movies online without a per-movie cost. In this preview ahead of our full review, we unpack the device and give our first impressions on how it stacks up to Apple's offering.

Like Apple TV, the partnership between Netflix and Roku has given way to a compact box for streaming select movies and TV programs directly to your television. The $100 box serves up unlimited content from Netflix's "Watch Instantly" section as part of the standard subscription price of its DVD by mail service. The 10,000 Watch Instantly "movies and TV episodes" include many documentaries and older films, but provide a wide range of options that were previously only viewable from a Windows PC, due to the use of Windows Media DRM that is incompatible with Macs.

Roku's box is simple to setup and use, and essentially stands in as a substitute for having to hook up a Windows laptop to view the Watch Instantly titles. Here's an unpacking and setup tour of the new device, which we'll review in greater depth and compare to Apple TV in a future article.

Inside the simple blue box is the unit itself, about the size of short stack of CDs, along with a remote control and a brief getting started guide.

Also included in the box is a small external power supply and stereo audio and composite video cable (below).

The unit itself includes output jacks (below) for composite, S-Video, and component video, along with an HDMI port for both video and audio output. It also supplies optical audio and stereo audio outputs. In addition to the wired Ethernet port, it also supports 802.11 b/g wireless networking, but not the faster 802.11n used in Apple TV.

The Roku box is smaller and lighter but taller than the Apple TV (below top) and supplies roughly the same outputs (below bottom), although it lacks USB (which Apple TV currently does not use), and provides a composite video output that the Apple TV does not support.

Setup and configuration

Configuring the Roku Netflix box is simple and straightforward: once plugged in, it boots up and presents an easy to follow series of pages that connect the device to an existing wired or wireless network. It then talks to the Netflix server to download a software update and finally presents a code that needs to be entered into a computer logged into the Netflix website. Once completed, the activation allows the user to select programs from the Watch Instantly section of the Netflix website on a Mac or PC. The selected programs are then made available from the box. It is not currently possible to browse for other content directly from the box; everything needs to be queued up from a web enabled computer first.

The device seems to work well as an appliance for watching streamed content for Netflix subscribers. The video quality is close to what you'd expect from digital cable and seemed to play smoothly over our fast cable Internet connection, which is rated at 16 megabit. Over slower connection rates, the system dials down video quality automatically. Because there's no hard drive storage in the system, all programs are streamed when played, so the device needs a constant connection and takes a few moments to begin playing. It also takes some time to skip ahead in the program being watched.

The device challenges Apple's iTunes strategy of selling video programs � la carte, as the cost of all content viewable from the Roku device is included in a Netflix membership. At the same time, the box doesn't currently support online shopping, direct purchases, HD rentals, PC audio streaming, photo and home movie access, podcasts, YouTube, and the other features of Apple TV. The significant differences and minimal overlap between the two may make both devices attractive to users who want a variety of options. We will present a more in depth comparison of the Roku Netflix box to Apple TV in a followup article.

AT&T to boost 3G speeds more than fivefold by 2009

2008-06-05T20:31:00.001-07:00

Published: 11:20 AM EST

AT&T said Wednesday it plans to boost the speed of its 3G wireless network to speeds of 20 megabits per second in 2009, paving the way for over-the-air downloads that are more than five times faster than what customers can achieve today.

Speaking at the Morgan Stanley's annual Communications Conference, the company's mobility chief Ralph de la Vega said engineers already have a version of AT&T's HSPA (High Speed Packet Access) 3G network up and running in the labs at speeds of 7.2 megabits per second, or approximately double the theoretical throughput of its existing network.

"It's clear to us that we are in the very early stages of what I would call a wireless data revolution," he said.

AT&T plans to transition to HSPA release 7 sometime in 2009, which will deliver even bigger speeds "exceeding 20 megabits per second," according to the executive. He said the upgrade will require few if any hardware modifications to the company's infrastructure and will instead be a smooth transition achieved largely through a software upgrade to its electronics.

De la Vega also said that his firm has "a clear and logical path" to 700MHz 4G access via the Long Term Evolution (LTE) standard in the 2010 timeframe which should again increase speeds fivefold to nearly 100 megabits per second.

"[The] steps to get there are very logical and they're all building on the same GSM technology that we've been using for a while," he explained. "LTE will allow for backwards compatibility to GSM and HSPA, which is a great benefit to customers. And our path forward to LTE allows us to get there step-by-step, with interim steps that will deliver more and more speeds everyday."

De la Vega was similarly excited about AT&T's growth opportunities in the smart phone market given upcoming handsets from Apple and BlackBerry maker Research In Motion, noting that just 16 percent of the company's postpaid customers currently own integrated devices.

"So upside on further penetration is substantial," he said.

Google's Android demo shows app store, tweaks iPhone formulas

2008-06-05T20:30:00.009-07:00

Published: 10:45 AM EST

Attendees at Google's I/O Conference this week were greeted with an Android phone interface that shares yet more common ground with the iPhone from the company's close neighbor Apple, including the first evidence of a dedicated app store.

The search engine giant's project lead for Android, Andy Rubin, dropped hints at the event that his firm's commitment to open development access doesn't preclude it from creating an official marketplace for Android apps. Instead, he argued that the concept could be essential for promoting the mobile operating system and its partners.

"It would be a great benefit to the Android community to provide a place where people can go to safely and securely download content and where a billing system would allow developers to get paid for their effort," The Register heard Rubin say. "We wouldn�t have done our job if we didn�t provide something that helps developers get distribution."

While details of just what this would involve are still murky at this stage, the Google manager's live demonstration of the latest version of Android revealed a conspicuous "Market" button already in place -- albeit one not explored during the presentation.

Even so, the addition creates an unusual similarity between Google's commercial platform and that coming with Apple's iPhone 2.0 firmware in June. Where most mobile app stores are operated independently of hardware or software, such as Handango, both the Android Market and the iPhone's App Store will be controlled by the same companies responsible for their respective operating systems.

Google's open platform is believed to allow installations of apps without official blessing, however, in contrast to the official certification process necessary for iPhone software.

The Market icon in Android. | Image credits: AndroidCommunity

Although one of the more conspicuous similarities, the I/O gathering also revealed a few familiar, if improved, interface elements initially seen in Apple's hardware.

Of note are multiple home screens accessed through the same swiping gestures as those introduced with Apple's January firmware update, though with an extra twist: while Apple's screen is limited to application icons and web shortcuts, the Android front-end uses the extra space for links to particular contacts and even immediately viewable widgets like clocks.

Even the slide-to-unlock motion, which is a simple left-to-right affair with the iPhone, expands to a nine-point system with Android that lets users secure the phone with a memorized pattern.

And while Google has regularly declared its pride in offering Google Maps with the iPhone, the Mountain View, Calif.-based company has reserved some of its best features for its own platform. The accelerometer that largely governs just screen rotation in the iPhone can now be used in a new Street View mode that rotates the point of view simply by changing direction in the real world.

Google itself won't produce handsets and is leaving that responsibility to established handset makers like HTC and Samsung, many of which are expected to produce a mix of devices that will kick off Android's debut late this year.

Android's new home screen.

Street View in Google Maps.

Google Maps on Android.

Android's new slide-to-unlock system.

Report: 3G iPhone 22% thinner, better battery life

2008-06-05T20:30:00.007-07:00

Published: 04:05 PM EST

Wired's Leander Kahney, arguably the most credible yet of those who've weighed in with alleged specs of Apple's upcoming 3G iPhone, is reporting the handset will be 22 percent thinner than its predecessor, not thicker as some earlier reports had suggested.

Citing "a programmer at a major software publisher," Kahney adds that the handset should also sport better battery life than the "up to 8 hours" of talk time advertised alongside its predecessor. It will also include GPS and twice the amount of NAND flash memory: either 16GB or 32GB.

What's more, Kahney's tipster claims Apple will allow subsidies on the new model as a means of attracting some of Research in Motion's existing and would-be Blackberry customers.

He points to an article by the UK's TimesOnline, which cites a UBS Investment Research analyst as saying the device could be available in Britain for as little as �100 (or ~$200) beginning in July.

Still, Kahney hedges his bets with a warning that he has not confirmed the integrity of the information offered up by his tipster.

AppleInsider is maintaining a running list of 3G iPhone-related rumor and news reports on its 3G iPhone topics page.

All-encompassing iPhone patent filing hints at GPS, video chat

2008-06-05T20:30:00.005-07:00

Published: 06:20 PM EST

Apple has filed for a patent that addresses virtually every aspect of the iPhone, including potential additions such as GPS mapping, media messaging, video calls, and voice commands.

Apple's free 8GB iPod touch Back-to-School Promo now official

2008-06-05T20:30:00.003-07:00

Published: 08:30 AM EST

Apple on Tuesday officially kicked off its largest back-to-school promo in the company's history, offering a free 8GB iPod touch to students and educational staffers who purchase a qualifying Mac.

More specifically, the promotion offers a $299 rebate that cancels out the price of an 8GB iPod touch, though the rebate can also be applied towards the purchase of the 16GB ($399) or 32GB ($499) model. Alternatively, participants can elect to receive a free 8GB iPod nano for the reduced rebate value of $199.

In order to qualify for the offer, the iPod and Mac system must be purchased at the same time and appear on the same receipt. Apple lists qualifying Mac systems as the MacBook, MacBook Air, MacBook Pro, iMac, and Mac Pro. The Mac mini, previous-generation 17� iMac, Apple TV, iPhone, iPod shuffle, iPod classic, 4GB iPod nano, and refurbished products are not eligible.

The products must be purchased from the Apple Online Store for Education Individuals, an Apple Retail Store, Apple Telesales, or an Apple Authorized Campus Store located in the 50 United States or the District of Columbia.

Faculty and staff of higher education institutions and students attending or accepted into a higher education institution are eligible. Any employee of a public or private K�12 institution or Qualified Homeschoolers in the United States or District of Columbia are also eligible.

Additionally, school board members who are currently serving as elected or appointed members are eligible, as are PTA or PTO executives currently serving as elected or appointed officers.

A full rundown of the Terms and Conditions [pdf] are available on Apple's website. The promotion, which was first revealed by AppleInsider last week, will run June 3 - September 15, or "while supplies last."

Mac OS X 10.6 to show at Apple developer event, drop PowerPC

2008-06-05T20:30:00.001-07:00

Published: 11:05 PM EST

While everyone focuses on the iPhone next update, a new rumor posits that Apple will already have a new version of Mac OS X available for testing in early form at WWDC, with its actual launch appearing as early as next year's Macworld event.

Information purportedly handed to TUAW would have Apple seeding a rough version of Mac OS X 10.6 to developers attending the conference, with a release to manufacturing in December and a January shipping timeframe.

Similar to Mac OS X 10.1, however, the release would more closely resemble a maintenance release than a complete overhaul. The primary change would be a complete transition to an Intel-only, 64-bit platform that drops PowerPC support, pushing developers to code only for the x86 architecture at the heart of all Macs released from 2006 onwards.

AppleInsider first received word that the Mac maker would shed PowerPC support as early as September, just a month before the release of Leopard.

Expectedly, Apple has refrained from discussing any of its post-Leopard plans to date. The company has nonetheless dropped early signs that it may be preparing for the new release, with reports of a small 10.6 reference surfacing in the latest build of the iPhone's software development kit.

Apple has also alluded to next week's WWDC as a landmark event in "more ways than one," with bridge imagery suggesting two bridges to cross at the San Francisco gathering.

Apple seeks expert in WiMAX; impromptu 5th Ave. lineup; more

2008-06-05T20:29:00.007-07:00

Published: 06:40 PM EST

Apple is on the hunt for an engineer familiar with WiMAX, Ultra-wideband, and other next-generation wireless technologies. Meanwhile, confusion reigned on Thursday as a lineup appeared at the Fifth Avenue store without warning, Oppenheimer Funds has opened its coverage of Apple, and a thief of 330 iPhones has agreed to surrender to local police.

Apple in job search for WiMAX engineer

A recent search by Apple for a Senior RF System Engineer reveals that the company is "exploring new wireless technologies."

Part of a group dedicated to researching cutting-edge wireless standards and implementing them in Apple devices, the engineer will need to be experienced with "Mobile TV," Ultra-wideband (UWB), and WiMAX, in addition to more ubiquitous standards such as 3G cellular data, Bluetooth, and GPS.

While the group isn't described as committed to using the hardware for any one product, the acknowledgement opens the door to the use of these wireless formats in future devices. WiMAX in particular is supported by Apple's favored chip supplier, Intel, and is soon to be jointly deployed by Clearwire and Sprint in a US-wide network that will offer fourth-generation (4G) wireless Internet access to handhelds and computers.

Intel's upcoming Centrino 2 platform for notebooks has the option of a Wi-Fi and WiMAX combination card, dubbed Echo Peak, that offers both wireless services.

Technologies such as mobile TV and UWB have typically seen more limited uses to date. In the US, both AT&T and Verizon offer digital over-the-air TV broadcasts as subscription services, while UWB is used under the Wireless USB moniker as a means of providing near-USB speeds to supporting peripherals at short range. The feature is currently an option for notebooks from Dell and a handful of other PC makers.

Mystery customer lineup appears at Fifth Avenue Apple store

While Apple's customers are known to go to great lengths to queue up for announced products, an impromptu queue spotted by Engadget on Thursday afternoon has observers scratching their heads.

At least 60 people are said to have waited outside the glass cube despite the lack of any new products or special events -- with some mistakenly convinced that a 3G iPhone was ready for them at the other end. Barriers and Apple staff were present to control the lineup.

Representatives from Apple provided the most logical explanation: the store is simply queuing up iPhone customers to manage the risk of overcrowding at the underground location. Despite its reputation, the Fifth Avenue store is not a large store and is known to be full-to-bursting even without additional factors at work, such as ongoing iPhone shortages and the looming Memorial Day weekend.

Still, the line has triggered enough speculation that the founder of the public performance group Improv Everywhere has stepped in to clarify that this isn't an elaborate stunt by the troupe.

Oppenheimer opens coverage on Apple with optimistic look

Adding to the roster of financial institutions tracking Apple's fortunes, OppenheimerFunds on Thursday began its first look at Apple with a positive investors' note that set a target for Apple's share price at $235.

Analyst Yair Reiner argues that most researchers' views of the expected 3G iPhone's impact are overly conservative and that new models for both home and business will help Apple beat its own predictions, boosting iPhone shipments from the officially predicted 10 million in 2008 to 14 million. As many as 28 million handsets could ship in 2009, he says.

Reiner also forecasts the Cupertino, Calif.-based firm claiming a significant share of the market in the long term, reaching five percent by 2012.

The electronics giant is "ideally positioned" to reap the rewards of a shift towards entertainment-oriented PCs and from basic cellphones to all-in-one media computers, the analyst writes.

iPhone thief surrenders

A high-profile inside job at Apple's Salem, New Hampshire Apple store that saw over 330 iPhones stolen has come a step closer to its conclusion, as one of the thieves has given himself in to area police.

Although arrested at the same time as fellow Apple store employee Chris Nashed, Josh Garrard until Wednesday was fighting extradition from his home state of Massachusetts until he chose to surrender in Salem and face criminal charges.

More details have also surfaced regarding the crime in the wake of the original arrest. Garrard and Nashed had already admitted to planning to resell the iPhones but are now known to have been paid by a buyer who purchased the phones at $420 -- a heist that resulted in a $138,600 profit at the time.

Orange reportedly offering upgrade deals for next iPhone

2008-06-05T20:29:00.005-07:00

Published: 12:00 AM EST

French iPhone owners are said to be receiving offers from Orange that would discount the new iPhone for owners of today's model.

Multiple readers of French technology site PCInpact are claiming to have been called by Orange regarding an upgrade to the future Apple handset (English translation through Electronista).

The first solution would allegedly entail a direct swap. A trade-in for the current model would reduce the price of a new iPhone to 50 Euros, effectively subsidizing nearly all the cost of the new phone with the old one.

Alternately, subscribers could obtain the next iPhone at what's referred to as a "generous" discount, the website claims, although what this would involve is a mystery.

Orange, for its part, remains silent in regards to the matter and has yet to address PCInpact's claims.

If true, such a gesture by the carrier would represent the first instance of a subsidy connected to the new and likely 3G-capable iPhone -- an offer previously unavailable with any of the iPhone's six countries, which for now offer the handheld at full price and compensate Apple by supplying a portion of its subscription revenues each month.

Other changes from the iPhone's largely fixed prices have revolved around temporary discounts to clear overstock at certain carriers, including a �100 price drop for 8GB iPhones through O2 UK and an ongoing variable-rate discount through T-Mobile's German branch that discounts the iPhone depending on the customer's choice of service plan.

Analysts have suggested that Apple may need to begin subisidies with its next-generation iPhone to maintain sales momentum and expand to certain markets. As an established product, the iPhone is seen by experts as needing more than just publicity to drive sales and may be switched to a subsidized model, particularly in China and other countries whose carriers may reject any revenue sharing deals outright.

Regardless of how accurate the calls may be, the true extent of any alleged change in business models is likely to be felt in June, when most expect Apple to introduce its long-awaited 3G iPhone model and give local carriers an opportunity to formally unveil their own plans.

AT&T now limiting iPhone sales to one, requiring plastic

2008-06-05T20:29:00.003-07:00

Published: 03:00 PM EST

AT&T in an internal memo to its retail department on Wednesday instated a couple of new policies regarding sales of Apple Inc.'s increasingly hard-to-find iPhone, primarily that customers are allowed to purchase only one of the handsets until further notice.

"Effective May 14, 2008, customers can only purchase one iPhone at AT&T stores," reads a copy of the memo obtained by AppleInsider. "The prior limit of three iPhones is no longer in effect."

The exclusive US iPhone carrier said all requests to purchase more than one of the touch-screen handsets must be approved by a director or general manager, adding that cash and checks will no longer be accepted.

"Customers may only use credit or debit cards to purchase their iPhone," the memo says.

The move comes amongst a growing shortage of the handset worldwide, as Apple is believed to have ramped down or ceased production of the current 8 and 16GB models ahead of a new version that will run on so-called 3G networks.

Over the weekend, both of Apple's online stores in the US and UK stopped accepting new iPhone orders. Availability of the device overseas has faired littler better, with UK wireless partner O2 having run dry of its supply last week only to return bearing just the high end model.

Mac OS X 10.5.3 moving along, on course with iPhone 2.0?

2008-06-05T20:29:00.001-07:00

Published: 11:00 AM EST

Apple continues to plug away at the next maintenance and service update to Mac OS X Leopard, which may be on track for a release around the same time as the company's iPhone software v2.0, according to one tipster.

People familiar with ongoing tests of Mac OS X 10.5.3 say a new build was released privately to developers on Wednesday carrying build number 9D32 and packing a half dozen more code corrections.

Among those improvements are tweaks to the performance of certain graphics drivers and fixes to parental controls, wireless certificates, and screen sharing, those people say. The latest additions bring the running total of fixes expected as part of the release to a staggering 220.

For the second time in as many weeks, Apple is also reported to have slightly expanded the focus area for developers by asking that they aggressively test Leopard's Spotlight search feature in addition to the 14 other core components listed alongside build 9D29 last Wednesday.

Again, the Mac maker lists no known issues with the 416MB update, as has been the case for several weeks.

While previous expectations would have software nearing a formal release by next week, a rumor sent to AppleInsider and other Apple news sites suggests that Apple may have placed Mac OS X 10.5.3 on a development course similar to iPhone Software v2.0, which is due at the end of June.

The unconfirmed tip goes on assert that the two pieces of software would be released within a week of each other and also include some contingencies on .Mac, which would reportedly be offered at a discount early adopters of the company's upcoming 3G iPhone. Again, the tip is unconfirmed.

Meanwhile, Apple is simultaneously working on Mac OS X 10.5.3 Server, which upon last check had reach build 9D28. The release currently bundles just over four dozen fixes and maintains a core focus area of 20 components.

Intel exec vouches for Atom-based Apple Newton tablet - report

2008-05-31T05:01:00.001-07:00

Published: 04:15 PM EST

A high ranking Intel executive is said to have made comments this week that corroborate reports of a Netwon-like mini-tablet under development at Apple, as originally revealed by AppleInsider last year.

Intel Germany chief Hannes Schwaderer reportedly spilled the beans during the company's 40th birthday celebration at BMW World in Munich, adding that the device is expected to be powered by one of his firm's Atom ultra-mobile device chipsets.

"Schwaderer today confirms what has long been a rumor on the Internet: namely, that there is an iPhone with Intel's new Atom chip," reads a report in the German edition of ZDNet. "The device is slightly larger than the current version, Schwaderer said. This is not [because of] the Intel chip, but [because of] the larger display used in the new iPhone."

AppleInsider exclusively reported last September that Apple, which helped spawn the PDA market with its Newton MessagePad line in the '90s, was planning to give the concept another go with a modern day reincarnation based on the its mutli-touch technology.

The device has been described by sources as an ultra-thin "slate" akin to the iPhone and running an embedded version of the Mac OS X Leopard operating system.

Artist depiction of future tablet device alongside Apple's existing handhelds | Artwork by audiopollution.

Latest iPhone 2.0 beta adds geo-tagging to Camera photos

2008-05-31T05:00:00.007-07:00

Published: 09:00 AM EST

A new beta of Apple's iPhone Software v2.0 Update released privately to a select group of enterprise partners this week adds a few new preferences and the beginnings of geo-tagging support for the handset's Camera app.

People familiar with the release, reportedly labeled build 5A292g, say location-aware services such as "Maps" and "Camera" now ask the user's permission before transmitting data used to identify their current geographical location.

The addition as it applies to the Camera application is interesting in that it suggests Apple is actively working on adding support for geo-tagging photographs, those people say.

Essentially, geo-tagging is the process of adding geographical identification metadata to media files such as latitude and longitude coordinates -- or even names of places -- so that those files can later be referenced, searched, and grouped based on their origin.

In addition, Apple is also reported to have added a toggle under the iPhone's general preference pane that will allow users to enable/disable Location Services on a system-wide basis.

Although the new beta prompts users for permission to use Location Services in the Camera application, those people familiar with the software say it appears that location metadata is not yet embedded in new photographs.

iPhone Software 2.0 is due next month alongside the company's much-anticipated next-generation iPhone that will boast support for so-called 3G networks. However, it will also be made available for existing iPhone owners.

One of the most highly anticipated features of the software is the App Store, which will allow users to purchase a wide variety of native third-party applications that are currently under development for both generations of the touch-screen handset.

AT&T once again hiring retail temps for June

2008-05-31T05:00:00.005-07:00

Published: 06:55 PM EST

In what is becoming an identifiable pattern, AT&T is once again on the prowl for temp workers to bolster its ranks for a 'mystery' campaign during the early summer.

A call has been put out through the Kelly Services temp agency that will see workers join AT&T's wireless division as greeters for a project known only as "Summer Project Pro."

While scarce on details of what the position entails, the request is a near-mirror of the cellular provider's efforts for the iPhone launch last year and hints that the company expects a repeat sales rush for a next-generation product this year.

In June of 2007, AT&T hired short-term workers for what ultimately amounted to crowd control. The new hires steered customers quickly through retail stores to ensure that all buyers, iPhone or otherwise, were well-treated regardless of the added store traffic.

Like the earlier plan, the latest recruiting drive also provides a familiar two-month work span for successful candidates. Work would begin on June 16th and end almost exactly three months later, on August 16th.

However, veterans of the 2007 campaign note that this doesn't necessarily point to the release of a new iPhone at the very start of that period. Temporary workers hired last year needed about a week of training before they began work in earnest, those experienced with past efforts say.

If so, the hiring campaign will swell the numbers of AT&T store staff and put enforcers on the ground during the last week of June -- or during the same approximate timeframe as the iPhone's first birthday.

Home automation, location-based iPhone apps chosen for funding

2008-05-31T05:00:00.003-07:00

Published: 11:00 AM EST

An application that will allow you to control your household appliances and another for finding out what's going on around your current location are the first two pieces of iPhone software to receive funding under the iFund.

BusinessWeek reports that fund managers at Kleiner Perkins Caufield & Byers have received submissions from 1,700 startups hoping to vie for a slice of the $100 million iFund, announced this past March at Apple's iPhone Software Roadmap event.

The venture capital firm has thus far funded just two of those companies, made an offer to a third, and is presently considering funding for another ten.

Pelago, a developer of on-the-go lifestyle applications, was reportedly the first to see funding for an iPhone version of its Whrrl application. By leveraging the mapping capabilities of the iPhone and other smartphones, the software tries to make it easy to find information about places and businesses within close proximity to a user's current geographical location.

"Say you're lost in Las Vegas and need a restaurant recommendation. With iPhone in hand, you can scan the locations of nearby restaurants, just Italian restaurants, or just those recommended by foodie friends," BusinessWeek explains. "Or you could search for the highest-rated bars or kid-friendly activities recommended by friends from your social network."

Joining Pleago as the only other company to receive an iFund grant at this time is iControl, makers of home automation software that would give iPhone users remote control over air conditioners, lighting, window shades, and so forth.

iControl for iPhone should let you kill the lights from the dent in your couch.

Not all third-party developers authoring iPhone applications for distribution over Apple's upcoming App Store are necessarily in need of funding. The same report notes that Loopt, which offers software that lets mobile users see the proximity of their friends, will announce deals with more mobile providers at "an upcoming event."

BusinessWeek echos the popular notion that June 9th, the first day of Apple's Worldwide Developers Conference, will see the unveiling of the company's much anticipated 3G iPhone. It may also offer a preview of one or more of the aforementioned applications.

Microsoft releases Office 2008 SP1, says VBA to make return

2008-05-31T05:00:00.001-07:00

Published: 10:00 AM EST

Microsoft on Tuesday released Service Pack 1 for Office 2008 and also provided a glimpse at its roadmap for the Mac productivity suite by announcing the return of Visual Basic for Applications (VBA) in the next version.

Since its release at Macworld Expo 2008, sales of Office 2008 for Mac have "soared," the Redmond-based software giant said, "selling faster than any previous version of Office for Mac in the past 19 years."

"The response has been amazing -- since we launched in January, the velocity of sales for Office 2008 is nearly three times what we saw after the launch of Office 2004," said Craig Eisler, general manager of the Mac BU at Microsoft.

Eisler's team on Tuesday made its biggest move yet towards fortifying the office suite with the release of Service Pack 1 (SP1), which aims to increase overall stability, and provide security and performance enhancements to the suite.

In particular, the update will deliver improvements to printing accuracy and reliability in Word, Excel, and PowerPoint. It should also deliver improved compatibility with files exchanged between Excel 2008 for Mac and Excel 2003 and Excel 2007 for Windows, Microsoft said.

Meanwhile, Word will gain updates to Notebook layout view and improved document map responsiveness, while PowerPoint's AppleScript compatibility will see enhancements that will offer users the ability to use the PowerPoint selection object in AppleScript to implement custom scripts that operate on the current selection in PowerPoint.

Some other changes target Entourage, such as improved calendar views and Exchange support. The personal information manager and email client will also gain the ability to send and view image from third-party tools.

As part of its announcements Tuesday, the Mac BU also said it intends to bring VBA-language support back to the next version of Office for Mac, but offered no timeframe for the update.

"Sharing information with customers as early as possible continues to be a priority for the Mac BU to allow customers to plan for their software needs," the group said. "Although the Mac BU increased support in Office 2008 with alternate scripting tools such as Automator and AppleScript -- and also worked with MacTech Magazine to create a reference guide -- the team recognizes that VBA-language support is important to a select group of customers who rely on sharing macros across platforms."

Office 2008 users can download the SP1 update for free at Microsoft's Mactopia Website (not yet available at press time), or can receive the file automatically via the Microsoft Auto Update installed as part of initial version of the productivity suite.

3G iPhone shell photos; possible Centrino 2 delay

2008-05-31T04:55:00.003-07:00

Published: 05:55 PM EST

Photos have surfaced of an accessory maker's purported reference model for the 3G iPhone. Also, Intel may have stalled the launch of its Centrino 2 mobile platform, potentially affecting the release of future MacBooks.

3G iPhone case mockup reappears in Netherlands

While there has been no shortage of images purported to reflect the final look of a 3G-capable iPhone, a new leak by Dutch site iPhoneclub supports evidence of subtle but significant alterations to the iPhone's outer appearance.

Seemingly matching a southeast Asian leak from just two weeks earlier, a mockup allegedly being used by a European accessory designer has a curved back needed to handle the extra demands of 3G as well as subtler visible changes, including a thinner chrome bezel that gives the appearance of a larger front face.

The back similarly abandons the silver-tinted aluminum of the current iPhone in favor of what appears to be white plastic, matching month-old descriptions by iLounge that suggested Apple may return to offering multiple colors. The possibility exists, however, that the backing is simply left white-colored for testing purposes.

Those same allegations also pointed to additional, hidden sensors at the top of the phone that may be used for video calling. None of these are immediately visible in the accompanying shots, while the reportedly altered microphone and speaker grilles are also hidden from view.

Intel's Centrino 2 may face multi-week delay

Predictions that Apple will introduce new MacBooks at WWDC may have been dashed by a last-minute delay.

Citing contacts it claims are close to Intel, TG Daily alleges that delays in approving the Wi-Fi chipset for the Centrino 2 platform's mainboard will now push the debut of the architecture until July 14th, or between two to three weeks after a projected but still unofficial late June launch window.

This initial launch would only include Intel's standard 802.11a/b/g wireless chipset, the purported sources claim; systems that need 802.11n would need to ship two weeks later.

As Apple uses 802.11n across all its notebooks, a delay of the sort would stall the shipment of Apple's planned major MacBook redesigns until late July or afterwards.

Separately, an issue with integrated graphics chipsets associated with Centrino 2 has also allegedly created problems and would specifically stall the launch of new aluminum MacBooks, which are likely to depend on Intel's built-in video hardware.

O2 fuels 3G iPhone frenzy as Bharti says deal signed for India

2008-05-31T04:55:00.001-07:00

Published: 01:00 PM EST

Telefonica's O2 subsidiary, the exclusive provider of Apple's iPhone to the UK and Ireland, has stoked anticipation of a 3G model with fresh comments Wednesday. Meanwhile, Bharti Airtel has signed a deal that will make it the second iPhone provider in India.

Speaking to analysts and members of the media during a quarterly conference call, O2 Europe chief executive Matthew Key said Telefonica and Apple would make a joint statement in "the coming weeks" but declined to specifically say whether it would regard the much hyped 3G iPhone.

"It is broadly known we are now out of stock of the 8 gigabyte and we have got some 16 gigabytes left," he would later tell Reuters in an interview.

Apple has also let its inventory of iPhones run uncharacteristically lean in recent weeks. Both its online stores in the US and UK have stopped taking orders for the device, and recent polls of the company's brick and mortar locations have turned up spotty availability at best.

At present, the Cupertino-based company and its wireless partners appear to be avoiding talk of a next-generation, 3G model strictly as a matter of policy. Always a showman, Apple chief executive Steve Jobs is likely to have planned a gala introduction for the handset at or before the company's annual developers conference set to kick off on June 9th.

Nevertheless, countless media reports and findings within resources of Apple's developmental iPhone software have revealed that the new phone should at they very least include 3G wireless and GPS capabilities.

For Apple, the stakes appear particularly high in India, where it along with Vodafone and just-announced partner Bharti Airtel will reportedly market the new handset through a staggering 250,000 Vodafone and Airtel retail outlets, including franchisee-owned shops.

It's reported that the rollout will be the largest in the world, handily dwarfing Apple's stateside plans that will see the device available in only about 7,000 AT&T and Apple retail locations pending any further developments.

Telecom exec says 3G iPhone to support 42Mbps HSPA

2008-05-29T04:57:00.005-07:00

Published: 11:00 AM EST

A senior executive for Australia's Telstra wireless carrier has allegedly told the region's ChannelNews that Apple's upcoming iPhone revision will be capable of supporting an advanced 3G connection at speeds of 42 megabits per second.

"We know what is coming, we have seen the new device and it will be available on our network as soon as it is launched in the USA," the unidentified executive is reported to have said. "By Xmas this phone will be capable of 42mbs which will make it faster than a lot of broadband offerings and the fastest iPhone on any network in the world."

The report goes on to say that Telstra already has 3G iPhones on hand for testing and that the device will be made available to the carrier's customers "very soon after its June 9 unveiling" by Apple chief executive Steve Jobs at the company's annual Worldwide Developers Conference.

If true, the claim by the unnamed Telstra exec would suggest that Apple is building a wireless broadband chip into its next-gen iPhone that supports an advanced High-Speed Packet Access (HSPA) protocol known as Evolved HSPA. In addition to downloads of up to 42 Mbps, Evolved HSPA networks also supports uploads at up to 22 Mbps.

Stateside, AT&T is putting the finishing touches on its own standard HSPA network that currently offers download speeds of 1.4 Mbps and upload rates around 800 Kbps. However, the US carrier promises to follow through on a plan that will boost download speeds to 7.2Mbps in the next year, eventually hitting 20Mbps sometime in 2009.

iPhone deals for Nordic and Baltic nations; new Leopard seed hits

2008-05-29T04:57:00.003-07:00

Published: 09:55 AM EST

Apple has signed on with TeliaSonera to sell its next-generation iPhone in the Nordic and Baltic markets. Meanwhile, a new pre-release build of Mac OS X 10.5.3 Leopard was pushed out ahead of the holiday weekend.

TeliaSonera to sell iPhone

In a one-line press release early Tuesday, Stockholm-based TeliaSonera said it has signed an agreement with Apple to bring the iPhone to Sweden, Norway, Denmark, Finland, Lithuania, Latvia and Estonia later this year.

TeliaSonera, the result of a 2002 merger between Sweden's Telia and Finland's Sonera, is now the dominate phone company in those regions. As of last year, the carrier had over 106 million mobile subscribers, including those from its other markets in Central Asia and Spain.

Mac OS X 10.5.3 build 9D34

Apple over the long holiday weekend provided developers with yet another build of the upcoming Mac OS X 10.5.3 Leopard update for testing. The pre-release software, labeled Mac OS X 10.5.3 build 9D34, joins earlier builds in containing no known issues, according to people familiar with the matter.

However, the new build arrived with just a single addition to software's bug fix list of over 220 items -- an improvement to kernel performance.

Apple is also reported to have made some modifications to the areas in which developers should focus their testing efforts. Specifically, it asked that they thoroughly evaluate all audio- and video- intensive applications, but said special attention is no longer required in the areas of AFP, Audio, Dock, Finder, Spotlight, and Sync Services.

According to a recent report, Mac OS X 10.5.3 is likely on a similar developmental course as iPhone Software v2.0, both of which are now expected to surface on or around Apple's annual developers conference during the second week of June.

Mexican iPhone, iTunes June rumor; Wall Street retail; Boston unveiled

2008-05-29T04:57:00.001-07:00

Published: 08:15 PM EST

Mexicans will get an iTunes Store to match the iPhone for a launch next month, according to one report. Also, the same may be true for Brazil; Apple may be close to securing its Wall Street store; and Apple has taken the wraps from its Boston store.

iPhone, iTunes said to launch in tandem for Mexico

Mexico will receive more from Apple than just the iPhone this year, says a new report from Mundo Mac.

Officials in Apple Mexico's office as well as its Spanish-language Miami call center allegedly claim that the iTunes Store for Mexico will launch alongside the iPhone in June and will be accompanied by support for purchasing prints and books through iPhoto.

The iTunes service is said to be all but necessary for the iPhone's launch in the North American country, as the phone's activation is normally tied to its owner's iTunes account.

An Apple retail store in Monterrey is also rumored to launch at the same time.

While no confirmations of Apple's plans are expected until June 9th at the earliest, the electronics giant has been particularly active in Mexico, opening its online store for the nation late last year.

Wall Street Apple store deal near completion?

Lending support to early reports of Apple scouting locations near the New York Stock Exchange, the New York Post now claims that Apple is in "serious" talks for one of the identified locations.

The Mac maker is reportedly close to securing rights to 23 Wall Street, a large 12,500 square-foot building currently owned by Africa-Israel but left vacant aside from a roof terrace for neighboring 15 Broad Street.

Aside from its prime location at New York City's financial core, the building has more history than nearly any Apple retail outlet has had to date. The building was built to be JP Morgan's main office in 1914 but was infamous as the backdrop for the 1920 Wall Street Bombing, which killed 38 people and damaged its walls -- scars of which were deliberately left in place and are still visible today.

Neither Africa-Israel nor Apple's representing real estate firm, RFK, have commented on the rumored move.

Boston Apple store unveiled

Just a day before its official opening, Apple's Boston retail store has been revealed to the public.

The 815 Boylston Street store is unusual among Apple stores for having a glass facade but a clearly visible metal frame immediately behind it.

As with a number of flagship locations, the three-floor interior also centers around a glass spiral staircase. Each floor is dedicated to a different market, according to a report by Gizmodo: the base floor serves the "important" Mac customers, the second floor serves iPhone and iPod customers, and the third floor is used for both service as well as workshops.

Plant life on the roof and rainwater collection will help sustain the building through natural means when it opens on Thursday at 6PM.

Images are courtesy of Gizmodo.

2.5m AT&T iPhone users; Piper on WWDC Macs; 3G stock panic

2008-05-28T06:10:00.013-07:00

Published: 06:05 PM EST

AT the New York Times has developed a new version of its Times Reader for the Mac; and a plunge in Apple stock value on Thursday was triggered by fears of an iPhone delay.

AT&T touts 2.5 million iPhone subscribers

AT&T can now lay claim to more than 2.5 million active iPhone subscribers, the carrier's chief financial officer Rick Lindner revealed Thursday.

Historically shy on details, the company also notes that the typical iPhone user on its network spends about $100 per month for service. This compares closely to fees spent for the BlackBerry Curve, he says, but nets AT the final version is expected to require a paid Times subscription.

Brief Apple stock dive triggered by 3G delay rumor

If Apple's shareholders were wondering why their stock value plunged on Thursday, they may be surprised at the nature of the drop, according to a claim by Barron's.

Trader sources allege that the frantic sell-off was due to "rumors of a rumor" of a delay in the release of a 3G iPhone; shareholders were reacting to delays for a device that isn't confirmed yet, the report indicates.

Apple stocks promptly bounced back on Friday.

Samsung intros 256GB SSD that may reach MacBook Air

2008-05-28T06:10:00.011-07:00

Published: 12:00 AM EST

Samsung has introduced a 256GB solid-state drive that promises to kickstart the industry with twice the storage and twice the speed of earlier disks while also costing less to manufacture than past models -- and having a chance of landing in future Apple notebooks.

Simply called the 256GB FlashSSD, the Serial ATA drive reads in-order data at 200MB per second, or double the rate of Samsung's past 128GB drive. It also boosts write speeds, often a bottleneck on solid-state drives, from 70MB per second to 160MB.

But the real advancement, Samsung says, is in the manufacturing process. Past drives, including the 128GB model, have depended on flash memory using a technique known as single-level cell storage. While quick and reliable, the inability to store more than one bit of data in each cell results in a high cost per drive. The prices of single-level cell drives have often been a hurdle to notebooks, with options for the MacBook Air and other systems frequently costing $1,000 or more to switch to the faster technology.

The 256GB drive changes this by switching to a new approach to multi-level cell storage that allegedly solves the problems of the format. The technology allows data to be much more densely packed, but has traditionally been slow and short-lived. However, a new drive controller not only gives it the same speed as single-level storage but gives it the same kind of longevity, at roughly one million hours before a failure occurs.

As it's more efficient in storing data, the multi-level cell technology is also "considerably" less expensive to make, though Samsung has stopped short of revealing the exact difference.

Until now, Apple has left multi-level cell flash memory to its iPhone and iPod devices, which are less dependent on speed and heavy disk access, but whether the MacBook Air or other Apple portables will use the the storage is unknown. Samsung plans a 1.8-inch version of the 256GB drive that will ship before the end of the year, and has been Apple's sole choice for the MacBook Air's solid-state drive to date: a 64GB drive is used inside Air models configured with the SSD storage option.

Other potential candidates have surfaced since the introduction of the ultraportable, however. Intel is reportedly preparing its own line of high-speed drives for release in the next quarter, while smaller rival STEC is claimed to have wrested the contract for the MacBook Air away from Samsung.

The Korean memory chip producer itself doesn't provide any direct clues, but mentions that it's "actively involved" in helping integrate solid-state drives into the systems of every top computer manufacturer in the US.

Sydney store banner; Apple solar LCD patent; Mississippi store

2008-05-28T06:10:00.009-07:00

Published: 01:05 PM EST

Apple has filed for a patent that would charge devices through solar panels behind their LCDs. Also, the company has put up a dramatic banner advertising its upcoming Sydney, Australia store, and Mississippi's first retail store is also confirmed as in the cards.

Sydney retail store given teasing banner

In what's quickly becoming a trend, Apple has once again posted a banner atop the glass front of an upcoming flagship retail store, ifo Apple Store reports.

Similar to the mock Green Monster used for the just-opened Boston store, the blue graphic above Apple's upcoming Sydney, Australia store conceals the final preparations for the design while also teasing with the prospect of an imminent opening: next to a swirl of blue iPod nanos, the only clue as to a doors-open date is a call to "drop in soon."

With the posting comes word of the cost to Apple for these publicity efforts. Every square foot of the plastic sheeting costs an estimated $10 to $12, resulting in $25,000 or more to advertise the store during the likely short-lived teaser campaign.

Located at the corner of George and King, the store promises to be both Australia's first official Apple store and its first flagship at the same time, spanning 14,370 square feet. A second store is planned for Melbourne.

Notably, both sources for ifo and other sites point to the first two Australian stores launching in June, potentially arriving in sync with an iPhone launch in the territory.

Apple files for solar screen technology patent

Part of Apple's wider greening efforts may one day include devices that often power themselves, according to a US patent filing found by Mac Rumors.

Rather than attempt to graft solar panels to the back of a given device or else make it larger, the technique would sandwich solar panels between the LCD and the circuit board. In this way, future Apple products could simply collect energy from the screen area itself and avoid impacting the aesthetics or the size of the product.

It would also shelter the panel from most forms of damage, the company says.

As is the case with patent applications, Apple hasn't yet been granted a patent and isn't under pressure to use the technology for a shipping product; the invention also faces technical hurdles such as ensuring that enough light reaches past the LCD to power the solar array.

Apple building, recruiting for first Mississippi store

Apple is quickly taking steps to expand its presence in the southern US with its first retail outlet in Mississippi.

The Clarion Ledger notes that aldermen in Ridgeland, near Jackson, have greenlit a proposed store for Renaissance at Colony Park, a new outdoors mall launched in March.

Simultaneously, both Apple's retail jobs page and a Renaissance page are already recruiting staffers for the location.

Apple files first lawsuit in defense of "Made for iPod" licensing

2008-05-28T06:10:00.007-07:00

Published: 06:55 PM EST

The first test of Apple's licensing system for iPod accessories has come with the launch of a complaint by the company against Atico International, whose iPod speakers allegedly infringe on patents behind the "Made for iPod" label.

In the ten-page suit submitted this week, Apple claims that a trio of Atico's products under the Living Solutions brand -- including the AM/FM Portable Boom Box, AM/FM Alarm Clock Radio, and Portable Speakers -- all tread on several key patents obtained by the Cupertino, Calif.-based electronics giant between 2007 and 2008.

These include a patent for the Dock Connector used by most iPods to transfer data, as well as patents for the Universal Dock's design, remote controls, and three dock adapters meant to fit different-sized iPods to a standard dock model.

In a copy of the complaint obtained by AppleInsider, Apple contends that Atico has failed to license its use of the docking design for the speakers, depriving Apple of royalties it believes are owed to its "Made for iPod" program. Uses of the iPod trademark, as well as some superficially similar logos designed to indicate compatibility with different iPod models, are also "exploiting Apple's name and reputation" and violating the federal Lanham Act by falsely suggesting an endorsement by Apple, according to the plaintiff.

The Delaware-based court filing adds that Atico's continued sales are depriving Apple of rightful income and asks for a permanent injunction against the sale of the offending Living Solutions speakers in addition to damages. The iPod maker sees this as an "exceptional case" that would allow it to collect not only triple damages but profits and court costs, including those for a requested jury trial.

The case marks the first known instance of Apple actively defending its controversial "Made for iPod" licensing program, which was launched in January 2005. Both in its lawsuit and in public presentations, Apple has argued that requiring licenses for iPod-specific peripherals helps the accessory designers by giving them the support to ensure their devices work with iPods. It also reassures buyers that a device meets a minimum quality standard, the company says.

Virtually all companies selling compatible accessories in the US have signed on to the program, with some arguing that the "Made for iPod" logo is effectively a sales booster: customers are more likely to buy add-ons when they know the items will work with their iPods.

Critics, however, have claimed that the need to license and pay royalties for the logo is chiefly a profit vehicle for Apple, which implemented the licensing system just as the iPod became mainstream and a raft of docking accessories were already in stores.

No matter how Atico interprets the move, the company is remaining quiet on the matter: neither it nor Apple has commented on the lawsuit.

WWDC sold out with over 5,000 attendees

2008-05-28T06:10:00.005-07:00

Published: 05:00 PM EST

Apple's Worldwide Developer Conference, scheduled for June 9-11, has sold out for the first time ever. Attendance at the event has rapidly grown as interest in the Mac platform has snowballed in proportion to rapid new sales of Macs.

Build It and They Will Come

This year however, WWDC is expanding to address the new iPhone mobile WiFi platform, an new expansion Apple illustrated in WWDC marketing with a photoshopped doubling of San Francisco's landmark Golden Gate Bridge.

At last year's event, which focused on the then yet unreleased Mac OS X Leopard, Apple unveiled a preliminary web-based development program for the iPhone, which resulted in some howls of protest from developers who wanted to tap into the full features of the device rather than just offer server side custom web applications.

Since then, Apple released the iPod touch and then promised a full Software Development Kit for both devices based on the same Cocoa development tools as Mac OS X. Interest in developing applications for the iPhone and iPod touch kicked into overdrive in February as Apple outlined plans to securely host developer's signed applications in the iTunes Store and offer direct wireless downloads from the devices via a new App Store icon.

The prospect of a piracy and malware resistant development program has seen enthusiastic interest from everyone from games developers including EA and Sega to custom corporate Intranet development and major software vendors from Microsoft to IBM to Salesforce.com. Adobe and Sun have also been feverishly working out how to port their Flash and Java ME platforms to the iPhone, apparently without much help from Apple.

Bulging at the Seams

WWDC has grown dramatically in recent years, prompting Apple to move the event from the original underground Moscone Center into the modern new Moscone West building. Last year, Apple set a new record for WWDC attendance with 5,000 developers from around the world.

Apple hasn't said how many have registered for this event this year, but had to cap further ticket sales due to space limitations. On its developer web site, under the notice that WWDC 2008 has sold out, Apple says, "You can still get all the great content from WWDC 2008. Session videos will be available to purchase on iTunes shortly after the conference. More details will be available soon."

Apple filing places iPhone networks at restaurants, zoos, concerts

2008-05-28T06:10:00.003-07:00

Published: 09:00 AM EST

Apple Inc.'s iPhone can already playback video, browse the Internet, and place phone calls, but a new filing by the handset maker suggests it may one day take your lunch order and serve as a tour guide at the local zoo.

The concept calls for a short-range wireless network comprised of a central server and one or more wireless routers, such as AirPort Extreme WiFi base stations, that merchants or attraction organizers could install within their venues. Included on the central server would be a proprietary software-based application (or "iPhone server") capable of interfacing and serving up customized information and applications to Apple media devices devices that come within range of the network.

"For example, assuming the establishment is a restaurant, local server may provide a menu to media device," the company said. "A user may choose contents in the menu for an order by interfacing with device 1020 and submit the order to local server when complete. Local server may then process that order upon receipt."

In some cases, software on the server could interact with software on a user's media device, such as an iPhone or iPod touch, to allow the menu to be customized for a that user. For example, the personal media device may have stored user preference profiles for desired foods. If it is known that user of device has a dietary restriction (such as diabetes) or prefers to eat vegan food (Steve Jobs), the menu could be customized such that only the food the user is permitted to eat or prefers to eat is provided on the menu.

"The user preference profile may be uploaded to the merchant server, which may generate a custom menu to be provided to the personal media device," Apple said. "In another approach, the entire menu may be provided to the media device, but the media device may filter out content based on the user preference profiles to provide a custom menu."

Such a customize menu system could be extended even further, according to the filing, in that a food rewards systems may be implemented to reward a user with the option to eat normally restricted food (such as dessert) if it is determined that the user has earned the reward. Similar, the software on the user's media devices may be able to monitor a person's health (by measuring the number of steps the person has taken or by monitoring a person's pulse).

"This health information may be collected over the course of a day, week, or other predetermined period of time," Apple said. "Depending on the level of physical activity and monitored health, the personal media device may provide the user with a reward. This reward may be 'cashed in' when a menu is customized to include food that would not otherwise be included."

In another example provided as part of the patent filing, the short-range wireless system may be referred to as a distributed network such as citywide public network or a merchant-wide network. In this example, a system could include many wireless routers that may be connected the central server.

Each wireless router would have its own local area network, thus any device located within a particular wireless router's local network may be able to communicate with server. One advantage of this kind of system is that the geographic location of each wireless router may be known and the local area networks of two or more routers may intentionally be laid out to overlap one another. This overlay, Apple explains, could be advantageous because it may provide more precise detection of a media device's geographic location (e.g., three wireless routers may be used to triangulate the position of a media device in communication with three routers). Such geographic knowledge could then be used to execute various location-specific features.

"For example, in one embodiment, as a media device moves from one router's local network to another, media device may automatically download content specific to a particular router For example, if server detects the geographic location of media device to be in the geographic region of router, server may instruct media device to play content local to router. In another approach, assuming that media device has already downloaded all or a portion of the content included on server, when media device establishes communication with router (e.g., by moving into its local area network), server may issue a command to media device to play localized content specific to router. Thus, specific content may be played based on a detected geographic location of a media device. That is, even though the aggregate of routers may form a larger distributed network, specific content may be provided or cause to be played based on a detected geographic location of media device within that larger distributed network."

In some cases, Apple says a docking station and wired network may be substituted for a wireless one, which would provide its own set of advantages. Referring back to its restaurant example, the electronics maker said each dinner table could include a docking station, and as such the location of that docking station is known.

"Thus, when a user places an order on a particular docking station with his or her media device, the merchant may know which table placed the order. In other embodiments, depending on the location of a particular docking station, server may provide different information," the company said. "For example, if a user is at a tourist attraction such as a zoo, server may provide primate information to a docking station located in the primate section of the zoo and may provide lizard information to docking station located in the lizard section. In yet another embodiment, a user may connect to docking station to download all localized-content onto media device, thereby giving a user the option to access the content when desired. For example, a user may download all localized-content for a tourist attraction (e.g., a museum). When the user moves from one area of the tourist attraction to another, the user may select content appropriate for the area her or she is in. For example, if the user is in the impressionist section of the Metropolitan Museum of Art, the user may select an audio file on impressionist art."

In the 8-page patent filing, authored back in November of 2006 -- just prior to the iPhone's unveiling -- Apple rattled off at least six other potential implementations of its short-ranged wireless system:

* "Various location-based content that may be provided in connection with a merchant that sells goods and articles of manufacture. For example, a user may access music (e.g., being freely broadcast by the establishment or for sale on content source), advertisements (e.g., coupon specials, video advertisements, and audio advertisements), event calendar (e.g., to learn of exciting new events that may be occurring at the merchant), virtual card information may be exchanged, podcast, general information on merchant (e.g., return policies), product information (e.g., graphics of products, reviews of products, etc.), or any other suitable information pertinent to the merchant."

* "Various location-based content that may be provided in connection with a merchant that sells food (e.g., a restaurant). For example, such a merchant may provide music (e.g., for purchase or for free listening), a menu (e.g., from which a user may place orders for foodstuffs), event schedule, general information on the merchant, reviews (e.g., Zagat survey), and any other suitable information pertinent to the merchant."

* "Various location-based content that may be provided in connection with a concert or other music venue. A concert or music venue may provide content including, for example, music, setlists, virtual cards, website information, schedule information (e.g., for upcoming shows at the venue), graphics (e.g., album art, pictures of the band members, etc.), ticket sales (e.g., provide user option to purchase tickets in advance), general information relating to the concert, or any other information."

* "Various location-based content that may be provided in connection with a theater or movie. For example, local content may include music, soundtracks (e.g., for purchase from a content source), movies (e.g., for purchase from content source), podcast (e.g., audio commentary relating to the movie such as director's commentary), showtime schedule, advertisements, ticket purchasing, real-time translation (e.g., if a foreign file or an opera in a foreign language), graphics, or any other suitable information."

* "Various location-based content that may be provided in connection with a tourist attraction (e.g., a museum or zoo). Local content may include, for example, audio podcasts, maps, event schedule, advertisements, general information, graphics (e.g., animal pictures), and any other suitable information. Because tourist attractions can be relatively large (e.g., Disney World) and children often frequent such places, parents may be concerned of a child's whereabouts if not directly within their sight. Assuming the parent and child both have a media device, and the tourist attraction or other large area (e.g., city) has a distributed network, a location program may be executed to determine the location of the child's media device."

* "Various location-based content that may be provided in connection with a transportation hub (e.g., an airport, bus station, or train station). Localized content may include, for example, schedules, maps, weather, city information, or any other suitable content. FIG. 15G indicates various location-based content that may be provided in connection with a merchant that sells groceries. Localized content may include, for example, advertisements (e.g., weekly flyer), shopping lists, suggested foods (e.g., to adhere to a preferred eating lifestyle such as vegetarian), recipes, music, and any other suitable content."

The filing, which was botched during publication by the United States Patent and Trademark Office and is therefore missing its associated illustrations, is credited to Apple employee Michael Rosenblatt.

Intel: Apple tablet comment simply untrue

2008-05-28T06:10:00.001-07:00

Published: 12:00 PM EST

Intel Corp. today is scurrying to clean up a mess made by Germany's ZDNet on Wednesday when it reported that an Intel exec had confirmed the ongoing development of a iPhone-like tablet at Apple, a report which the chipmaker now claims is patently false.

Specifically, ZDNet reported that Intel Germany chief Hannes Schwaderer at a small gathering in Munich "confirmed" the existence of a larger iPhone at Apple that would employ one of Intel's ultra-mobile Atom processors.

The report gained widespread traction given earlier predictions by AppleInsider and other media outlets that such a device does in fact exist, and has long been under development at Apple's Cupertino-based headquarters. The problem, however, was that Schwaderer appears to have never made the comments suggested by the ZDNet report.

"No Intel exec has said anything about any future Apple product, Atom processor or otherwise," an Intel spokesperson told AppleInsider. "I think that�s important to note as everyone speculates on future products from Apple."

Since ZDNet's original report hit the net, a couple of other publications on hand for Schwaderer's presentation have offered their interpretation of the events, which also appear to suggest that ZDNet's report was misleading.

An editor for Golem.de claims that he does not recall any mention of an iPhone tablet during the executives speech, while PCGamesHardware.de attests that a reference to an iPhone device was made, but only as an example of a product that could benefit from Atom.

Unfortunately, only 40 or so reporters were on hand for Schwaderer's presentation, AppleInsider has been told, and thus further first-hand accounts are likely to be limited.

Nevertheless, and regardless of misinterpretations this week, AppleInsider maintains that Apple is working on a iPhone-like mini tablet reminiscent of the Newton MessagePad that should surface in due time.

Orange to offer 3G iPhone in Africa, Mid East, and Europe

2008-05-28T06:08:00.009-07:00

Published: 09:00 AM EST

Orange, the exclusive provider of iPhones in France, announced Friday a new deal with Apple that will see it expand distribution and service of the device to additional European countries, the Middle East, and parts of Africa.

Specifically, the French carrier said that later this year it will provide details on availability for Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland, and its existing African markets.

A spokesperson for Orange parent company France Telecom told Reuters that the carrier will be the exclusive iPhone provider in Belgium and Romania, with co-exclusive or non-exclusive deals in other countries.

Orange joins Swisscom and SingTel, which also announced iPhone deals this week. Swisscom earned the rights to sell the device later this year in Switzerland, while SingTel through its subsidiaries said it would market the phone in Singapore, India, the Philippines and Australia.

Earlier this month, America Movil said it would offer the Apple handset throughout Latin America, while Vodafone announced deals for Australia, the Czech Republic, Egypt, Greece, Italy, India, Portugal, New Zealand, South Africa and Turkey.

Telecom Italia Mobile will also be selling the iPhone in Italy, and Rogers will market the device in Canada.

Latest iPhone deals nearly quadruple Apple's addressable market

2008-05-28T06:08:00.007-07:00

Published: 03:00 PM EST

An announcement by France Telecom's Orange subsidiary on Friday to deliver the iPhone to 10 more countries later this year effectively quadruples Apple's total addressable market when combined with other carrier announcements over the past two weeks, according to investment firm Piper Jaffray.

"Currently Apple's total addressable market includes 153 million subscribers in 6 countries with AT&T, T-Mobile Germany and Austria, O2, and Orange," analyst Gene Munster wrote in a report. "These announcements increase those numbers to 575 million subscribers in 42 countries including recent agreements with Vodafone, SingTel, American Movil, Swisscom, and Orange."

The rapid international rollout is about 8 months ahead of the analyst's expectations, giving him much higher confidence in his earlier predictions that the company will sell 12.9 million iPhones this year and 45 million next year.

"To give some context to these numbers, Apple sold 3.7 million iPhones in 2007 into a total addressable market of 148 million subscribers (or 3 percent penetration)," he explained. "Taking the recent carrier announcements into consideration, we are modeling for Apple's penetration rate to remain at 3 percent in 2008 and double to 6 percent in 2009."

Munster's model for 2009 factors in the assumption that the handset maker will have by that time rolled out the iPhone into the blistering Chinese and Japanese markets, which would nearly double the iPhone's addressable market again from 575 million to 1.1 billion.

In general, the analyst believes the majority of Apple's new carrier agreements are non-exclusive deals that will have a
positive impact on iPhone units and a negative impact on iPhone revenue share. For investors, however, the overall net impact should be positive, he said, as he believes Apple shares will trade on unit numbers alone for the next year or so.

"We expect the next generation iPhone to launch in mid-June, shortly after Apple's Worldwide Developer's conference on June 9 and the international rollout will continue throughout the second half of 2008," Munster wrote. "While there is little question that the next version of the iPhone will include 3G mobile data, we can now all but confirm 3G in the second-generation iPhone."

The analyst maintained his Buy rating and $250 price target on shares of Apple.

Steve Jobs to showcase OS X, iPhone platforms at WWDC

2008-05-28T06:08:00.005-07:00

Published: 08:35 AM EST

Apple announced Tuesday that a team of Apple executives, led by CEO Steve Jobs, will kick off the company's annual Worldwide Developers Conference (WWDC) with a keynote address beginning at 10:00 a.m. on Monday, June 9, 2008 at San Francisco's Moscone West.

This year's WWDC will showcase two revolutionary development platforms, the ground-breaking innovations of OS X Leopard and OS X iPhone, the company said in a statement.

The five-day event, which runs from June 9 to June 13, will feature the first ever iPhone track for mobile developers with in-depth sessions and hands-on labs to fully explore the capabilities of the OS X iPhone 2.0 software, including the iPhone SDK and the App Store, a new way for developers to wirelessly deliver their applications to iPhone and iPod touch users.

The iPhone track will also enable mobile developers to work side by side with Apple engineers to create fresh applications that leverage iPhone's groundbreaking Multi-Touch user interface, animation technology, rich set of APIs, including programming interfaces for Core OS, Core Services, Media and Cocoa Touch technologies, built-in three axis accelerometer and geographical location technology to deliver truly innovative mobile applications.

Meanwhile, this year's Mac track is being organized to give newcomers and seasoned veterans alike the technical foundation and techniques needed to develop world-class OS X Leopard applications with sessions that discuss every level of the system, including interface design and implementation, application frameworks, security, localization and networking.

In total, WWDC 2008 will offer over 150 information-rich sessions and labs where Apple engineers will go in-depth on the innovative technologies that power OS X iPhone and OS X Leopard, the company said. Developers are encouraged to bring their own code to the labs and work one-to-one with Apple engineers, applying development methods and best-practices gained from sessions to enhance their applications.

Other activities at Apple's WWDC 2008 include:

* presentation sessions led by engineers that provide an in-depth look at OS X iPhone, OS X Leopard and innovative tools and technologies such as the iPhone SDK, Cocoa Touch, Interface Builder, Xcode and more;
* practical hands-on sessions where attendees can learn Apple's own coding strategies and techniques;
* technology labs where attendees can work one-to-one with Apple engineers; and
* special events, including the Welcome Reception, Apple Design Awards, Lunchtime Speakers and Stump the Experts.

Swiss iPhone rumor; BlackBerry Thunder; Apple gay-friendly

2008-05-28T06:08:00.003-07:00

Published: 07:20 PM EST

Switzerland will be yet another carrier offering the 3G iPhone, claims a local newspaper. Meanwhile, rumors have surfaced of a "true" iPhone-slaying touchscreen BlackBerry; Google has launched a new iPhone reader beta; a study finds the iPhone still a small player on the web; and Apple has been deemed of the friendliest brands for gays and lesbians.

Paper: 3G iPhone to launch with Swisscom

Apple will roll out its upcoming iPhone update to Switzerland as part of its ever-widening international strategy, says a report in a recent issue of Swiss paper Le Matin.

A purported source at Swisscom tells the publication that the national carrier has just completed a deal with Apple to supply a 3G-capable iPhone sometime during the summer.

Le Matin also claims to be aware of the phone's new features, including two-way video chats, mobile TV, and GPS navigation, though declines to corroborate its rumors with further details.

Additionally, the paper has since followed up the report with assertions that Swisscom will use "attractive" incentives to lure new iPhone subscribers to its service, and that a high-end plan will make mobile video and other live services possible.

BlackBerry Thunder RIM's true answer to iPhone?

While most attention is centered on the BlackBerry Bold as Apple's likely opponent in the smartphone arena this year, its creator Research in Motion is quietly developing its real touchscreen alternative behind the scenes, according to a new rumor from the Boy Genius Report.

Referred to alternately as the BlackBerry Thunder or BlackBerry 9500, the device would drop the hardware keyboard that has been a staple of RIM's phones and use a large touchscreen for both typing and navigation; only buttons for calls, the BlackBerry menu, and backtracking through the interface would carry over.

The Thunder is also described a high-end, two-mode phone that would support CDMA and GSM phone services in equal measure, including very advanced data access; it would support not just HSPA on 3G networks but a future 4G service, which is speculated to be the Long Term Evolution (LTE) format being chosen by most cellular providers.

The reported details would also have RIM launch the phone in the summer that makes the Thunder a "lifetime" exclusive for both Verizon and its key partner Vodafone, delivering a marketing coup for the carriers roughly at the same time as the 3G iPhone enters its stride.

The Report has often been an accurate source of data regarding the BlackBerry, obtaining information about the Bold and other devices. However, readers should be aware that LTE isn't set to be used by any commercial network until 2009, casting doubt on the accuracy of the rumor.

Google updates Reader for iPhone

Google on Tuesday introduced a beta update to its Google Reader web news app for the iPhone.

The upgrade brings the handheld-formatted version closer in features to the full-size version and expands chosen RSS articles in place, letting users read full article without disrupting their ability to resume browsing the list of news afterwards. This also applies to marking stories for later, the company says.

While eager to unveil the update, Google adds that it won't yet automatically redirect viewers to the new page.

Report finds iPhone still small player on the web

Apple's willingness to crow about the power of the iPhone's web browser hasn't yet translated to a command of the mobile web, says a study by the young marketing firm AdMob.

Following users by the ad requests their browser makes, AdMob sees the iPhone at just 1.1 percent of all US mobile web traffic; by comparison, Motorola's aging and more limited RAZR V3 flip phone still leads with 9.1 percent. While percentages change, both phones hold the same ranks on the international level.

iPhones don't fare much better when limited to competition against similarly advanced phones, according to the researchers. The BlackBerry line makes about 47 percent of US smartphone requests and 26 percent worldwide, while Apple must make do with 5 and 6 percent shares for mobile operating systems -- a share small enough to be overshadowed by the BlackBerry OS, Palm, Windows Mobile, and Symbian.

The study's authors insist, though, that Apple's very appearance in its charts is a telling sign of greater adoption and that many AdMob clients have created iPhone-specific websites.

Apple most gay-friendly tech firm in new study

Included in the same ranks as TV network Bravo, vodka maker Absolut, and jeans maker Levi's, Apple is one of the brands friendliest to a gay and lesbian audience, a new survey from PlanetOut claims.

The homosexual respondents chose the Mac maker above all other technology companies as being the most sympathetic based largely on the company's public perception, including marketing, discussions with friends, and the brand's representation by the media.

A key supplier of Apple's, Korea-based Samsung, is rated as one of the least friendly along with such company as Dunkin Donuts and Wal-Mart.

PlanetOut doesn't explain why Apple in particular has been singled out, but claims that many gay and lesbian people are "early adopters" of many products.

These users also tend to dramatically increase their support of a brand when they feel gay imagery is present, PlanetOut notes.

WSJ on touch BlackBerry; Intel 4-core; T-Mobile at 100K iPhones

2008-05-28T06:08:00.001-07:00

Published: 06:00 PM EST

A report by the Wall Street Journal further kindles rumors of a touchscreen BlackBerry going toe-to-toe with the iPhone this year. Meanwhile, T-Mobile Germany reports selling more than 100,000 iPhones since launch, Singapore Airlines offers passengers iPhone- and iPod-friendly in-seat entertainment, and Intel's first quad-core notebook chip may fit systems like the MacBook Pro.

WSJ backs claims of BlackBerry Thunder

Adding to speculation, the Wall Street Journal now says that it, too, has information supporting rumors of a rapidly-nearing launch for the BlackBerry Thunder.

Less non-committal than the original Boy Genius report, the newspaper's report cites anonymous people familiar with the smartphone who agree that the Thunder, also known as the BlackBerry 9500, will natively support both the Verizon and Vodafone wireless networks in addition to shedding a physical keyboard.

Little else is revealed in the Journal's account, though the earlier story would have the phone support both third- and fourth-generation data, despite neither Verizon nor Vodafone planning to debut 4G services for at least a year.

Nonetheless, the report bolsters the initial claims and says to expect a launch in summer that would pit both the Thunder and the Bold against an all but confirmed 3G iPhone.

T-Mobile Germany sells 100,000 iPhones since launch

Deutsche Telekom chief Rene Obermann on Thursday revealed that T-Mobile Germany has sold more than 100,000 iPhones since the Apple handsets first went on sale in November.

The report is the first since the end of January from T-Mobile, when the cellular provider said it had sold 70,000 units -- indicating a significant slowdown after the iPhone's first few months in local stores.

Separately, T-Mobile board member Hamid Akhavan says the sales are still "in line" with predictions but admits that a promotional price cut has spiked sales since it was introduced in early April.

Singapore Airlines offers iPhone, iPod ports on flights

US travelers to the city-state of Singapore now have the option of plugging in their iPhone or iPod for most of the trip, Singapore Airlines announced on Thursday.

Effective immediately, certain long-distance flights will include special connectors to plug in dockable Apple devices and feed both audio and video to an in-seat entertainment system dubbed KrisWorld that will also keep the handhelds charged.

The system is intelligent enough to momentarily override audio in the event of a cabin announcement, the airline says, but must be used in Airplane Mode by iPhones to prevent interference.

Service starts with all Airbus A345 flights from Newark, New Jersey but should ultimately include all A340 airliners leaving Los Angeles starting from August and will spread to New York at a later date.

Intel quad-core notebook processor fit for thin systems?

A new report from the Inquirer alleges that Intel has refined the efficiency of its first quad-core mobile processor ahead of its summer release.

Although numerous sources have claimed the 2.53GHz Core 2 Extreme QX9300 will chew as much as 45 watts of peak power at its design limits -- ruling it out for all but the heftiest notebooks -- the British site now says Intel has reduced the processor's power draw to 35 watts without sacrificing its 12MB of Level 2 cache or other features.

The chip is believed to be part of the second wave of processors built for Intel's Centrino 2 platform, which enables a faster 1,066MHz bus speed and better power management, among other new features.

The drop would give it the same power consumption as most Core 2 Duo processors today, expanding the usefulness of the chip to thin-and-light notebooks. The processors in Apple's MacBook and MacBook Pro both consume 35 watts.

The cost of the chip, however, still calls into question its suitability for the MacBook Pro. A single QX9300 costs $1,038, or nearly twice as much as the 2.6GHz Core 2 Duo that Apple reserves as a build-to-order option for its premium MacBook Pro models.

Apple's AirPort grabs 10.6% share of 802.11n WiFi market

2008-05-28T06:03:00.005-07:00

Published: 07:00 AM EST

While Apple's share of the entire US PC market hovers between 6% and 8% depending on the source, its share of the 802.11n WiFi base station market is even higher.

Stephen Baker, an analyst for market research firm NPD Group, told AppleInsider that Apple took 10.6% of the market in unit volume last month. He added that the company's revenue and profit share on sales of the routers are even higher.

Last year, Apple noted on its website that the AirPort Extreme was ranked by NPD as the top selling 802.11n router. While Apple no longer advertises that, Baker said that the AirPort Extreme has been the top selling 802.11n router for five of the last nine months.

Last week, the analyst told Macworld that the AirPort Extreme lead US retail sales as the top selling router in April, while the new Time Capsule topped sales as the most popular Network Attached Storage device. Despite their overlapping functionality, it was reported that strong sales of Time Capsule were augmenting sales of the AirPort Extreme base station rather than cannibalizing them.

Combined with sales of the compact AirPort Express, which was upgraded to support the faster 802.11n standard in March, Apple took fourth place in overall 802.11n base station sales, behind Cisco's Linksys brand, D-Link, and Netgear.

Apple markets its AirPort base station line to users of both Macs and Windows, which allows it to sell the product beyond its own user base, following the same cross platform strategy of the iPod, iTunes, QuickTime, and the iPhone. Linksys, D-Link, and Netgear also advertise Mac compatibility, but their products do not always deliver flawless support for Safari on the Mac. That helps give Apple a home field advantage in selling to Mac users.

Additionally, Apple's retail and online stores are selling AirPort base stations to new Mac users without any competition. "This stuff is just flying off the shelf in the Apple stores," Baker told Macworld. "They don�t get nearly enough credit for the value proposition that the stores bring."

On the Windows PC side, Apple still faces formidable competition. Baker told AppleInsider that Linksys "has recently delivered a number of new SKUs in the 802.11n segment that have done very well driving their volume." Several years ago, Linksys began using Linux-based software in its wireless routers, a move that compelled it to publicly release its source code under the GPL. That availability enabled Linux users to add previously restricted, high end router software features to low cost Linksys base stations, as well allowing Linksys' competitors to use its router software to compete against it with their own hardware. Linksys has since moved to using the proprietary VxWorks kernel in its flagship router products.

Apple's AirPort line also uses proprietary software, in addition to custom Mac and Windows client software for configuration rather than using a webpage interface as most base stations do. That may limit the appeal of its AirPort line among some Windows users, but it also allows Apple to install support for unique features that differentiate the AirPort line, including Bonjour automatic printer sharing and AirPort shared disk discovery as well as AirTunes audio streaming support from iTunes to an AirPort Express or Apple TV.

Brisk base station sales suggest that Apple's "fourth leg" behind its Mac, iPod and iTunes business, and the iPhone is not the emerging Apple TV but rather AirPort, a business segment that has performed well, albeit almost invisibly, since its introduction back in 1999, two years before the iPod.

Goldman adds Apple to its Conviction Buy List

2008-05-28T06:03:00.003-07:00

Published: 10:00 AM EST

Citing high expectations for the next-generation iPhone leading up to and through its expected launch next month, investment bank Goldman Sach this week added Apple to its coveted Conviction Buy List and also upgraded its price target on the company to $220 per share.

In a research note, analyst David Bailey told clients he expects the combination of a 3G iPhone, third-party applications via Apple's upcoming App Store, and a wealth of new international carriers to push iPhone units of approximately 11 million this year, compared to just 3.7 million in 2007.

"Our analysis shows that Apple will almost double its available subscriber base in calendar 2008 vs. 2007, with 100 percent of that growth coming from outside of the US as Apple signs up carriers in more than 40 new countries in Europe, Asia, the Middle East, and Africa," he wrote.

More specifically, the analyst sees carriers in those new international markets boosting the iPhone's available subscriber base from roughly 97 million in 2007 to 174 million by the end of this year.

"We have only assumed contract subscribers in our analysis, as we think pre-paid customers are not prime candidates for the iPhone," he explained. "While this reduces the available market for iPhone -- it would triple in 2008 if all subscribers were included -- we think it is more realistic to use the smaller subset given iPhone�s higher-end characteristics."

Bailey reiterated his Buy rating on Apple shares, advising investors that now is the time to build on their positions if they want to "capture the catalyst around the 3G iPhone launch next month and the upside potential from sharply higher projected iPhone sales in the back half of the year."

Component report pins MacBook overhaul for third quarter

2008-05-28T06:03:00.001-07:00

Published: 10:00 AM EST

The next update to Apple Inc.'s line of 13-inch MacBook consumer portables will arrive sometime during the third quarter of the year, Far Eastern component suppliers are reported to have revealed.

Without citing sources, the Chinese-language Commercial Times said Friday that Taiwan's AU Optronics and Chi Mei Optoelectronics will evenly split the LCD panel orders for the new notebooks, which will see a launch somewhere in the July to September timeframe.

These new MacBook, as AppleInsider exclusively reported last month, will see their first structural and aesthetic changes since being introduced as an Intel-based replacement for Apple's iBook line over two years ago.

More specifically, people familiar with the matter have said the notebooks will shed their plastic enclosures for ones constructed from more eco-friendly materials such as aircraft-grade aluminum and stainless steel.

When they arrive later this year, alongside similarly overhauled MacBook Pros, the notebooks should more closely resemble the overall appearance of Apple's aluminum iMacs and the MacBook Air, those same people have said.

The report by the Commercial Times offers the same timeframe for the new notebooks originally reported by AppleInsider, which is slightly later than the June timeframe reported by another technology publication.

Both the MacBook and MacBook Pro are expected to receive "Montevina"-based processors from the Intel's upcoming Centrino 2 platform, which require a new "Socket B" logic-board. The second-gen mobile Penryn chips boast a 1066MHz front-side bus and clock between 2.26GHz and 2.8GHz.

RBC sees 3G, new carrier model driving iPhone sales of 14M

2008-05-16T01:07:00.001-07:00

Published: 06:40 PM EST

After meeting with top Apple brass at an event, RBC Capital Markets' Mike Abramsky claims that the electronics maker may shake up its existing business model for the iPhone and should easily pass its sales target for 2008, especially once 3G devices become available.

The analyst notes that optimism for the iPhone's future was buoyed by a gathering late last week which saw Apple's iPhone marketer Greg Joswiak, chief financial officer Peter Oppenheimer, and Mac desktop manager Tom Boger all meet the financial institution.

While mum on details of what was discussed at the event, Abramsky says RBC now has "further conviction" about Apple's plans and anticipates the Cupertino, Calif.-based firm selling as many as 14 million iPhones during 2008, easily surpassing the official estimate of 10 million units.

The revision comes from a newfound belief that Apple might alter its existing sales strategy to accommodate both carriers and users: where the company has insisted on a fixed price and revenue sharing, it may loosen its restrictions after encountering resistance to its present approach in some areas.

The company "may be planning to allow subsidized pricing, diminishing carrier exclusivity... and supporting global unlocked iphone sales," Abramsky claims, explaining that Apple could also reduce the revenue it shares from monthly plans or even drop the split entirely to secure some carriers' support.

Such a move could lift iPhone sales momentum by as much as 50 or 100 percent, he adds. An official backing of unlocked devices through sales in Apple retail stores and certain carriers could improve international sales by two to three times, according to the prediction.

Apple has increasingly shown a willingness to veer from its familiar approach in public statements and apparent leaks. Chief operating officer Tim Cook explained in February that the company is not locked to one strategy for pairing the iPhone with carriers and on Monday saw his statements echoed by T-Mobile Austria, which now says it may institute flexible pricing for the device itself.

Rethinking its strategy is also all but necessary to bring the iPhone to China, as the country's leading carrier China Mobile is currently refusing talks on the grounds that revenue sharing with a foreign business violates Chinese customs.

Abramsky nonetheless stresses that the device itself is likely to be a significant factor: the widely anticipated 3G-capable iPhone is still predicted to arrive in June and should serve as a catalyst for adoption, particularly with added enterprise and third-party software support built into the version 2.0 iPhone software. Key features that could accompany the update, such as video calling or GPS, could improve some sales -- though carrier bandwidth costs could reportedly push Apple away from offering downloadable movies, the analyst says.

The report also observes that any factor in Apple growth, whether carrier adoption or device acceptance, isn't likely to be impeded by an existing monopoly. Most countries have multiple compatible carriers, while the fractured nature of the device market itself means that no one company can claim absolute control. This is seen as giving Apple an opening it doesn't have with its Mac computer line.

"Unlike the PC market, in the fast-expanding Smartphone market Apple faces no incumbent (like Microsoft), creating an opportunity for Apple to take share from existing voice handset vendors like Motorola," Abramsky says.

Flash Wars: Adobe in the History and Future of Flash [Part 1 of 3]

2008-05-13T07:01:00.001-07:00

Published: 08:00 AM EST

Pitted against Microsoft's efforts to crush Flash using its own copycat Silverlight platform, open source projects seeking to duplicate Flash for free, and Apple's efforts to create a mobile platform wholly free of any trace of Flash, Adobe has scrambled to announce efforts to make Flash a public specification in the Open Screen Project.

Will it help get Flash on the iPhone? Here's the first segment of a three part series with a historical overview of the wars between Flash and Adobe, Microsoft, Sun, Apple, Google, and the open source community, the problems Flash faces today, and what future Flash can hope for as an open specification.

A Brief History of Flash

Flash originated at FutureWave Software as SmartSketch, an innovative drawing tool. In 1995, the software was repositioned as FutureSplash Animator, with support for cell based animation. It was pitched as a way to quickly draw and animate vector-based graphics for efficient delivery over the web, as a direct challenge to Macromedia's heavier and more complex Authorware and its Director-created Shockwave content.

FutureWave pitched the product to Adobe, but it was Macromedia that bought it in 1996, hoping to integrate it as an approachable, entry level member of its content production tools as the company's business was rapidly pushed from CD-ROM oriented products to the web. Macromedia abbreviated the name from FutureSplash to Flash.

It turned out that the easy to use Flash rapidly sidelined Macromedia's existing Authorware and Shockwave. Flash made it easy for designers to create interactive content with only minimal development knowledge. The real break for Flash came when Macromedia lined up a bundling agreement with Microsoft's Internet Explorer 5, which resulted in the Flash player software being widely distributed.

While Microsoft embraced Flash, it actively worked in parallel to stop Sun's Java and Netscape's web browser as threats to Windows. Microsoft's efforts to sideline Java into a Windows programming language and its strategy to embrace and extend standards-based, platform agnostic HTML into web pages that only worked in Internet Explorer gave Macromedia's Flash fertile ground to grow as a quick and simple alternative to the more complex and resource intensive Java as a way to create simple, interactive applets on the web.

Adobe Hates, Then Buys Flash

Adobe purchased Macromedia in 2005 largely to obtain Flash, the crown jewel of Macromedia's web development tool assets. Prior to owning it, Adobe unsuccessfully worked hard to kill it as a competing product.

In 1998, when Macromedia and Microsoft submitted VML to the W3C as a potential web standard for vector graphics (based on Microsoft's RTF), Adobe teamed up with Sun to push the rival PGML specification (based on Adobe's PostScript). The W3C developed a new standard that drew from both, called SVG (Scalable Vector Graphics).

Adobe pushed SVG as a competitor to Flash right up until it bought Flash, distributing the Adobe SVG Player as a free web plugin. Microsoft continued to push its own VML, which it built into Internet Explorer. This prevented either VML or SVG from making much progress, as other browsers didn't support VML, while the SVG open standard saw little adoption given Adobe's weak presence in web development tools. That let Flash easily win out over both as the way to develop and present animated vector graphics on the web.

Flash continued to develop at Macromedia, gaining a scripting language based on JavaScript and other features that turned it into a full presentation development tool rather than just a way to distribute small interactive graphics. Macromedia even took swipes back at Adobe, introducing FlashPaper as an alternative to Adobe's PDF as a way to distribute electronic documents in the Flash format.

After buying Flash, Adobe gave up support for its own weak SVG Player rival and has apparently discarded FlashPaper as a PDF competitor. However, the rest of the industry has plenty of reasons to still hate Flash, as will be presented in part two: The Many Enemies and Obstacles of Flash.

Microsoft steps back from Yahoo bid

2008-05-13T06:01:00.001-07:00

Published: 10:40 PM EST

A takeover that would have created one of the largest single rivals to Internet giant Google has been abruptly canceled, as Microsoft has formally withdrawn its bid to acquire Yahoo.

Handwriting recognition interface appears in iPhone Software 2.0

2008-05-08T09:07:00.007-07:00

Published: 12:55 PM EST

The latest private beta of Apple's upcoming iPhone Software v2.0 includes a handwriting recognition interface for the Chinese language, according to a new report.

AppleInsider reader Kenneth notes that build 5A258f of the impending software update adds several new Chinese input methods under the international keyboard settings, including handwriting recognition.

"Unfortunately, handwriting recognition is only avaliable in Chinese (Traditional and Simplified) and doesn't support English," he told AppleInsider.

In his own write up on the subject -- translated -- Kenneth posts several screenshots from the software, which show the handwriting interface functioning in both portrait and landscape modes.

As the user draws symbols on the screen, the iPhone's handwriting recognition interface begins to suggest possible character matches in a column to the right of the input area.

Apple had previously posted a job listing for a handwriting recognition engineer, and AppleInsider reported last year that the company's upcoming Newton/Web tablet would arrive with support for the input technology.

A recent patent filing has also suggested that Apple is working on a next-generation multi-touch 'surface' that would combine typing, pointing, scrolling, and handwriting capabilities into a single ergonomic design aimed at replacing traditional input devices such as the keyboard, mouse, and drawing tablet.

Apple's cash; new 10.5.3 seed; 3G iPhone photos; Boston store size

2008-05-08T09:07:00.005-07:00

Published: 05:25 PM EST

Apple's cash reserve is rapidly approaching that of Microsoft's. Meanwhile, Apple has seeded yet another build of its impending Mac OS X 10.5.3 update; some fresh photos of a purported 3G iPhone have appeared on an overseas discussion forum; and Apple's latest flagship retail store to open in Boston may be the company's largest yet.

Apple's cash may soon rival Microsoft

While Microsoft has long held the title as the technology firm squatting the largest mound of cash, Apple may soon give the Redmond, Wash.-based software giant a run for its money, literally.

The Seattle Post-Intelligencer's Todd Bishop points out that Microsoft has reduced its cash balance from more than $64 billion less than four years ago to $26.3 billion this year through large stock buybacks, dividends and acquisitions.

Meanwhile, Apple over the same period has seen its spare coin surge from $5.5 billion to $19.5 billion as a result of its industry-leading growth in the personal computer market and its dominance in the digital media player sector.

"Keeping too much cash on the balance sheet can raise eyebrows among investors, who often want companies to reinvest the cash in the business or to return the money to shareholders through dividends or stock buybacks," Bishop noted. "Investors are now watching Apple's growing cash balance in much the same way they did Microsoft's a few years ago."

Cisco still sits between Microsoft and Apple with $22.7 billion in cash. Google is a somewhat distant fourth with $12.1 billion.

Mac OS X 10.5.3 build 9D27 Seed Note

Continuing to plug away at the next maintenance and security update to its Leopard operating system, Apple on Monday is reported to have seeded Mac OS X 10.5.3 build 9D27 to its vast developer community.

According to people familiar with the distribution, the build was accompanied by documentation listing no know issues with the software update and asking that developers continue to focus their evaluation efforts on a previously stated list of 12 core system components.

As was the case with recent builds, build 9D27 saw the addition of nearly a dozen fresh code corrections, bringing the total number of bug fixes baked into the impending Mac OS X 10.5.3 Update to nearly 215.

Some of the latest tweaks target server certificates, printer plugins, Directory Server, and Apple File Server.

More would-be 3G iPhone photos

More photos purported to be that of Apple's upcoming 3G iPhone have surfaced on the Chinese-language discussion forums of WeiPhone.com. The images depict an iPhone clad in a white plastic shell with added sensors and modified microphone and speaker grills, matching a recent description of the next-generation device recently posted over at iLongue.

Although the images are almost certainly inauthentic mockups or third-party casings, they're being republished for the sake of discussion.

Apple's Boston flagship to be largest yet?

Finally, Gizmodo is reporting that Apple's soon-to-open flagship on Boylston Street in Boston may emerge as the company's largest yet by square footage.

"According to a store employee, it's a good thing Boylston Street is so big: Apple estimates 1,500-2000 customers/hour will visit � more than 10 times the 160/hour that the average store gets," the gadget site reported. "It's something else inferiority-complex ravaged Bostonians can hold over New York."

AmTech's Wu pulls 180, reinstates Buy rating on Apple shares

2008-05-08T09:07:00.003-07:00

Published: 02:00 PM EST

Less than two weeks after cutting his rating on Apple shares to Neutral, American Technology Research analyst Shaw Wu on Monday said he's taking a step-back, reinstating his Buy rating, and revisiting his long-term thesis for the multi-faceted electronics maker.

"We overestimated the potential negative reaction on the quarter and in hindsight should have moderated our near-term posture rather than downgrading," the analyst conceded in a note to clients. "While Apple shares will likely remain volatile and may offer a better entry point, we need to align our rating with our longer term view on fundamentals."

Although Wu maintains that "a potential product vacuum and draw-down in inventory" are likely during the current quarter, he now believes investors are routinely aware of those circumstances and have since looked past them in anticipation of new product launches during the second half of the calendar year.

Among those product launches, the analyst said, is 3G iPhone transition in the June/July timeframe, and a complete overhaul of the company's mainstream notebook offerings during the September quarter.

NBC at iTunes UK; Caris and Piper outlooks; new '3G iPhone' photo

2008-05-08T09:07:00.001-07:00

Published: 06:35 PM EST

NBC has tentatively dipped its toes back into iTunes' waters. Also, Caris Piper Jaffray sees Vodafone as having no iPhone exclusives; iTunes France may be the next to have a full-fledged video store; and yet another alleged 3G iPhone photo has appeared at AppleInsider's door.

NBC shows at iTunes UK

In what may be a sign of further reparations between two media giants, NBC Universal has put some of its shows back on the iTunes Store through its UK branch, according to reports.

Although limited to just a handful of shows such as Heroes and House, the move marks the seeming return of NBC to Apple's service after a heavily-publicized feud that saw Apple pull all NBC shows after the companies were unable to reach an agreement over the flexibility of TV show pricing. NBC is believed to have used its Hulu web-based service as well as deals with SanDisk and other Apple rivals as alternatives to an iTunes presence.

Early visits to the restored content, however, reveal that NBC may have gained the upper hand in negotiating its reappearance and struck a deal for variable pricing: legacy shows cost as little as �1.19, while in-production shows sell for �1.89.

The discovery has been made at the same time that NBC has offered TV shows for the Zune Marketplace in the US at a currently fixed $1.99 price.

Caris lifts price target based on high iPhone, Mac estimates

Caris & Company on Tuesday continued a recent precedent of more optimistic forecasts for Apple by increasing its share price target for the Mac maker from $170 to $200.

Analyst Shebly Seyrafi at the financial firm views both the iPhone and the Mac as the key factors in Apple's healthy state. While the Mac has shown a recent ability to grow above industry trends and merits attention, the potential for a 3G iPhone debut at June's Worldwide Developer Conference is a particularly strong "catalyst," according to the researcher.

An iPhone with the faster Internet access is likely to spike sales and will reach further than the current model, which is both incompatible with some areas and less desirable in Europe. A possible subsidy on iPhone prices may also help accelerate sales, Seyrafi says.

Caris now anticipates that Apple will ship approximately 10 million Macs in fiscal 2008 (up from 9.6 million) and 10.2 million iPhones (up from 10.0 million) during the same year. As many as 12 million Macs and 17.9 million iPhones could ship in 2009, the company's analyst says.

Piper: none of Vodafone's iPhone deals exclusive

Vodafone's announcement of ten national iPhone deals is noteworthy for the lack of exclusives associated with the contracts, according to Piper Jaffray analyst Gene Munster.

In an investment note, Munster notes that carriers to date have been quick to trumpet any exclusivity contracts they might receive -- a behavior unusually absent from Vodafone's release. The telecoms firm is already known to be sharing the spotlight in Italy with Telecom Italia, which also has rights to the device.

An open model across multiple nations is likely to hurt Apple's revenue share starting in 2009, but may be compensated by the expansion allowed by the new model. Vodafone's announcement by itself came as a surprise, Munster says.

"This announcement is both sooner and more expansive that we were expecting," he explains. "With the announcement of these 10 additional markets, the iPhone's international rollout is about 6 months ahead of our original expectations."

iTunes France to receive TV shows?

French iTunes customers will soon have access to TV show downloads, say separate reports from local media outlets collected by MacBidouille.

A recent

Boston's flagship store set to open May 16th

2008-05-07T08:06:00.003-07:00

Published: 10:20 PM EST

Apple's first store in Beantown will have an appropriately high-flying Friday launch on May 16th at 6PM, according to a new report.

Historically accurate with opening dates ahead of official announcements, ifo Apple Store claims the opening date for the Boston location is now due a week from this Friday and is the first of its kind since the launch of the West 14th store in December.

The store at 815 Boylston Street will be one of Apple's most conspicuous to open in recent months, with a three-storey-tall building fronted by glass. It will also be one of the largest in terms of floor space: at 6,384 square feet, the building is expected to service 1,500 or more customers per hour, or roughly ten times the traffic of a typical Apple retail outlet.

The storefront is also located immediately opposite Mac reseller Tech Superpowers, which has been tracking the construction of the Apple building from its early stages.

Apple has not announced any special promotional campaigns in the run-up to the store's long-awaited unveiling, but has taken unusual steps to promote the shop that include a green front covering that recalls the Green Monster at Fenway Park.

Flash Wars: The Many Enemies and Obstacles of Flash [Part 2 of 3]

2008-05-07T08:06:00.001-07:00

Published: 10:00 AM EST

While widely deployed as a web plugin and among the few web technologies that have become a household word, Adobe's Flash has more than a few substantial enemies that would like to see it replaced, cloned, or erased.

Additionally, Flash faces a number of significant obstacles that are its own fault. These also erode Adobe's position and have helped force its hand in opening the Flash specification. Here's a look at the external competitors of Flash, and how Flash has hurt its own chances to establish itself as a web platform in the future.

The Many Enemies of Flash

Microsoft now sees Flash as a competitor to Windows, as it performs the same cross platform, application deployment role Java attempted to deliver a decade ago. If critical web content is all done in Flash, there's increasingly less need to use Windows anymore, as most platforms can run at least some version of Flash. Microsoft is hoping to sideline Flash the same way it crippled Java on the desktop: by building its own proprietary version, Silverlight, and using its monopoly power to rapidly deploy it and simply choke off Adobe's air supply.

While Microsoft seemed rather invincible in the 90s as it more or less terminated Netscape, client side Java, OpenGL graphics, Office alternatives, and other competition, its more recent efforts to crush rivals haven't been as successful. Plans to destroy and replace iTunes and the iPod, Google in search or advertising, smartphones, and video game consoles have all been expensive campaigns that haven't resulted in monopoly expansion. That certainly makes the struggle between Silverlight and Flash more interesting and harder to call.

Sun may be an enemy of Microsoft, but that doesn't make it a friend of Flash. The company has watched Flash take over the role intended for client Java, and is now competing against Flash in rich Internet applications. Sun is fighting back with JavaFX, a new family of Java tools to push back into that market on both the desktop and in mobile devices.

The open source community has little love for Flash because it is a proprietary standard. The Free Software Foundation (FSF) is pushing Gnash as a free alternative player to Adobe's Flash Player (FSF lists it third among its High Priority Free Software Projects), while OpenLaszlo competes against Flash development tools for creating rich Internet applications; it can produce either Java serverlets or binary Flash content that can be played back using the standard Flash Player. Other groups are working to extend SVG and other software in place of Flash entirely.

Apple added support for Flash 4 to QuickTime 5 in 2001, which enabled developers to use Flash for interactivity within QuickTime movies. However, Apple had trouble keeping its support for Flash up to date with the latest release from Macromedia. Additionally, while Flash releases for the Mac were delivered at the same time as Windows, the quality of Macromedia's Mac releases was always a bit behind and problematic.

With Flash 8, released in 2005 just before the Adobe purchase, Macromedia decided to only build support for Flash content playback on the Mac within the web plugin or in the standalone player, and delegate Flash playback from within a PDF to QuickTime. By that time, Apple had given up trying to keep pace with the latest version of Flash, so users trying to view Flash inside a PDF could only play Flash 5 content.

In 2006, Apple turned off Flash support in QuickTime 7.1.3 by default, explaining that "The version of Flash that ships in QuickTime is older than the version available from Adobe and used in Safari, therefore, while we still ship Flash with QuickTime, it is turned off by default." Since then, Apple has removed the option to even turn Flash support back on in QuickTime.

Apple's complete lack of interest in promoting Flash grew even more obvious in 2007 with the release of the iPhone, which not only shipped without Flash support in its web browser, but also introduced an alternative H.264 player for YouTube videos that worked around what has become the most valuable use of Flash on the web: serving as a player applet and container format for web videos.

Apple to offer iPhone in Italy through multiple carriers

2008-05-07T08:04:00.001-07:00

Published: 09:00 AM EST

Apple Inc. will apparently abandon its exclusive carrier model for iPhone sales alongside the release of a 3G model, as two Italian carriers have issued statements Tuesday claiming rights to distribute the iPhone later this year.

On the heels of an announcement by Vodafone in which the multi-national provider said it had reached an agreement to sell the iPhone in Italy and nine other countries later this year, Telecom Italia is claiming it will also soon offer the handset to its customers.

"Telecom Italia announces today that it has signed an agreement with Apple to bring the iPhone to Italy within the year," the carrier said in a one line statement.

The announcements appear to signal an end to the exclusive agreements forged ahead of the initial iPhone launch last year, which have thus far proven successful only in the United States.

Reports out of Europe have routinely suggested that sales of the inaugural Apple handset in the region have been lackluster for a variety of reasons, including a lack of 3G compatibility, steep pricing, and limited carrier options.

A recent report from the Spanish-language business paper Cinco Dias stated that the Cupertino-based handset maker was having doubts about its exclusive carrier model after witnessing poor sales in Europe and watching customers unlock the phones themselves for use on unsanctioned carriers.

The paper went on to cite sources close to ongoing negotiations as saying that Apple was mulling the prospect of selling the iPhone through multiple providers in Latin American nations. It added that discussions with Telefonica in Spain have been ongoing for months, and correctly predicted that Apple would use Italy as a testbed by offering the handset through more than just Telecom Italia.

Though neither of the announcements on Tuesday specifically mentioned a 3G version of the iPhone, the consensus amongst insiders, analysts, and pundits alike is that Apple has been aligning deals for expanded distribution ahead of the next-generation handset.

Back in February, the iPhone maker offered the first hints that it would forgo exclusivity with carriers in favor broadening distribution when chief operating officer Tim Cook stated during a Goldman Sachs investment conference that the company was "not married to any business model," but was instead wed only to "shipping the best phones in the world."

Of interest, RBC Capital Markets analyst Mike Abramsky recently met with members of Apple's leadership and followed up with a research note Monday stating that the company was considering a move to allow subsidized pricing, diminishing carrier exclusivity, and support global unlocked iPhone sales going forward.

iPhone SDK goes international, T-Mobile on 3G iPhone in Austria

2008-05-07T07:55:00.009-07:00

Published: 11:00 AM EST

Apple has started to make available to international developers its iPhone software developers kit (SDK). Meanwhile, official commentary out of T-Mobile Austria indicates the region will serve as some form of test market for the upcoming 3G iPhone.

iPhone SDK goes international

Recent updates to the text on Apple's official iPhone developers site indicate that iPhone SDK has unofficially launched internationally.

Whereas the site previously stated that "the iPhone Developer Program will initially be available to a limited number of developers in the U.S. and will expand to other countries in the coming months," a message now says that it "will initially be available to a limited number of developers during the beta period."

At least one developer in the UK is reported to have enrolled in the program for �59 ($117), though a screenshot of the international enrollment process suggests the program is now open to 26 other countries in addition to the US and UK.

T-Mobile says 3G iPhone coming to Austria

During a press conference in Vienna on Monday, T-Mobile Austria is reported to have confirmed that a 3G version of the iPhone is on its way to the region.

Specifically, a German-laguage report in derStandard.at states that officials from the carrier said a "UMTS version" of the iPhone would be made available in Austria "shortly," and that the country would be one of just a handful to serve as a "testing" ground for the next-generation device.

In recent weeks, reports have suggested that Italy's TIM and Belgium's Mobistar would also see similar treatment.

Readers interested in tracking and referencing the plethora of 3G iPhone reports can turn to AppleInsider's 3G iPhone page for a continually updated list, or subscribe to the page's RSS feed.

Vodafone inks deal with Apple to sell iPhone in ten countries

2008-05-07T07:55:00.007-07:00

Published: 08:15 AM EST

Vodafone, the world's largest mobile phone company in dollar sales, announced Tuesday that it has reached an agreement with Apple to sell the iPhone in ten of its markets beginning sometime this year.

"Later this year, Vodafone customers in Australia, the Czech Republic, Egypt, Greece, Italy, India, Portugal, New Zealand, South Africa and Turkey will be able to purchase the iPhone for use on the Vodafone network," the carrier said in a statement without providing further detail.

Vodafone was at one time believed to be the frontrunner to secure an exclusive contract to sell the current version of the iPhone in the UK, but inevitably lost out to Telefonica's O2 back in September.

Upon last check, the Newbury, England-based firm had 252 million proportionate customers in 25 markets across 5 continents, making it the second largest wireless carrier worldwide in terms of subscribers, trailing only China Mobile.

Vodafone joins Rogers of Canada as the second carrier in as many weeks to announce a deal to usher the iconic touch-screen handset into new markets, presumably alongside the arrival of a 3G model that will operate on the carriers faster GSM-based networks.

Apple had previously stated that it planned to scale the iPhone to additional European countries and parts of Asia during the 2008 calendar year.

More unofficial Mac clones up for sale on eBay

2008-05-07T07:55:00.005-07:00

Published: 12:00 PM EST

A recent move by a little-known Florida-based solutions provider to openly challenge Apple on its Mac OS X licensing terms and begin selling an unauthorized Mac clone appears to have spawned a copycat.

A seller by the name of "chris555" is now offering on eBay a $549 "Non Apple Mac OS X" system that comes "pre-loaded with genuine Mac OS X 10.5." Two such systems are currently available for direct purchase, the seller says.

"Run the award winning Mac OS 10.5 on this custom-built desktop computer for hundreds less than a computer direct from Apple," reads a description of the product. "This desktop comes preloaded with Mac OS X Leopard with all the latest features. Finally, the power of Mac OS X at a fraction of the price."

Constructed in a generic beige and black enclosure, they system sports a 2.4Ghz Intel Core 2 Duo Dual-core processor, 2GB DDR2 RAM, 250GB 7200RPM Serial ATA hard drive, Intel Integrated 3D Graphics, DVD burner, Built-in 10/100/1000BASE-T Ethernet, and three USB 2.0 ports.

The offering is similar to one announced last month by Psystar Corporation, which also ships with Mac OS X Leopard 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.

Although the integrity of Psystar has come under considerable scrutiny, at least one customer claims the company has made good on its promise to fulfill orders for the $400 Mac clone.

Apple, which has historically been quick to thwart attempts on the part of grey marketers to distribute imitations products, has been uncharacteristically silent on the matter. This despite Psystar's open invitation to the Mac maker to formally charge it with a violation of the Mac OS X licensing terms in a court of law.

Those terms, Psystar argues, are in violation of antitrust laws -- an argument for which the clone maker may have a precedent working in its favor. According to TechNewsWorld, a 1984 U.S. Circuit Court of Appeals decision held that a software publisher can't require consumers to run an operating system on a specific type of hardware.

The Supreme Court reportedly refused to review the case.

Apple to begin selling 3G iPhone in late June?

2008-05-07T07:55:00.003-07:00

Published: 04:00 PM EST

Apple Inc. may begin selling its next-generation iPhone handset sometime on or after the third week of June, hints a recent memo from AT&T to its retail staffers.

In the message to employees this week, the nation's No. 1 wireless carrier spoke of an "exciting Summer Promotional Launch" that will kick off next month and offer the opportunity for sales representatives to "soar" past their sales quotas.

"To ensure proper staffing during this period, Sales personnel planning to take approved time off are encouraged to schedule their vacations before June 15 or after July 12 to participate in the heavy selling period," the company wrote.

Almost one year ago to the date, AT&T made a similar request of its retail staff, announcing vacation blackout days from June 15 through July 15.

The carrier, alongside Apple, began selling the iPhone on June 29th at 6:00 p.m.

In the weeks leading up to last year's iPhone launch, AT&T went on to appoint addition part time staffers, hire crowd control, and acquire stanchions to corral patrons. It also announce a plan to close down its 1800 retail stores at around 4:00 p.m. on June 29th and reopen them again at 6:00 p.m. with iPhones on hand.

Flash Wars: Adobe Fights for AIR with the Open Screen Project [Part 3 of 3]

2008-05-07T07:55:00.001-07:00

Published: 08:00 AM EST

Flash has plenty of enemies and obstacles, but it also enjoys wide deployment and familiarity. Two areas where Flash can offer real value is in displaying and packaging video on the web, and in serving as a Java replacement for developing applets. Here's a look at how Adobe is working to defend its strengths in the face of competition, and how its efforts to open the Flash specification in the Open Screen Project play into these efforts.

Challenges to Flash Video

Flash rapidly took over the market for embedding videos into web pages and popularized the proprietary FLA video container format. However, as the industry has moved to support the more advanced and open H.264 video codec, Adobe has been forced to drop its obsolete old FLA container and migrate toward H.264 itself, both as a codec and as a container file.

Since nearly all modern mobile devices now play back H.264 content in hardware, any advantage to using the Flash software player is now waning outside of the feeble web environment on PC desktops. Even there, Adobe only owns the playback of largely non-commercial content. Nearly all purchased video content is being distributed by Apple through iTunes, and most streaming content is being delivered by Windows Media, Real, or QuickTime. That reduces Adobe's ability to make enough money on Flash to entrench it as a necessary tool for web video.

Apple's ability to disrupt the status quo in video playback is evident in its deal with Google to vend YouTube videos to the iPhone, iPod Touch, and Apple TV as straight H.264 rather than Google's existing mix of a Flash-based player and its archaic GVI file format based upon AVI. The BBC similarly moved to support Apple's products by serving up standard H.264 video to them.

MacBook Pro with custom 128GB SSD upgrade benchmarked

2008-05-03T19:44:00.001-07:00

Published: 02:00 PM EST

While Apple offers solid state drives (SSDs) in its MacBook Air sub-notebook, it has yet to extend that courtesy to its professional notebook line. A recent in-depth analysis of a MacBook Pro custom fitted with a 128GB SSD offers evidence as to why, while holding promise for the coming year.

Following its performance and battery tests of an SSD-equipped MacBook Air, the highly technical hardware analysis publication AnandTech was propositioned to evaluate a stock 2.5GHz Penryn-based MacBook Pro upgraded with a 128GB Memoright MR25.1-128S SSD.

If you thought Apple's $999 upgrade price for the Air's 64GB SSD was steep, hold on to your seat. The Memoright drive was priced out at a whopping $3,819, which in itself provides one reason why the professional notebooks, which presently ship with a minimum of 200GB of hard disk space, have thus far been left out of the party.

With the combined price of the SSD-eqiupped MacBook Pro bordering on $6000, AnandTech was looking for real world improvements in battery performance, application performance, and overall system usage. To summarize, the drive failed to deliver in all but the final category, serving as yet another compelling argument against offering such an upgrade path in the MacBook Pro at current pricing.

Battery tests showed the SSD to slightly underperform when compared to the standard Hitachi 5400RPM hard disk drive (HDD) Apple ships with the MacBook Pro, while application performance saw marginal improvements (iPhoto Import, Adobe Photoshop CS3 retouch) in some cases but posed as a slight disadvantage in others (iPhoto Export, MS Office).

The advantage of the SSD over the HDD was most apparent in its ability to read random blocks of memory between 3 and 20 times faster than the SSD. But as the analysis notes, most single-application desktop usage models are heaviest on sequential disk access, not random, and hence won't see the biggest performance benefits of the SSD.

Where the flash-based SSD really shined was in overall feel and "snappiness" of the system, which takes into account application launch times, Finder interaction, and system boot time. Launch times were essentially cut in half and the MacBook Pro booted in 22 seconds with the SSD as compared to nearly 40 seconds with the HDD.

AnandTech notes that several of the larger capacity SSDs on the market like the Memoright are not native Serial ATA devices, and instead use an internal PATA interface to an external SATA interface, which presents several inefficiencies. It adds however, that Intel has been talking about its upcoming SSDs and how their own controllers will offer a significant performance.

Those Intel drives are due out sometime in the second half of the year, and with prices for flash memory falling approximately 40 percent year-over-year, it's believed that 2009 will end up being the year for widespread adoption of SSDs in mainstream notebook designs, while 2008 will go down as the year that it all started happening.

Breakdown: Apple analysts place bets ahead of earnings

2008-05-03T19:41:00.001-07:00

Published: 11:35 AM EST

AppleInsider reader poll:

WHO DO YOU THINK IS THE MOST ACCURATE APPLE ANALYST?
	Gene Munster (Piper Jaffray)
	Shaw Wu (AmTech)
	Rich Gardner (Citigroup)
	Ben Reitzes (Lehman Brothers)
	Mike Abramsky (RBC Capital)
	Katy Huberty (Morgan Stanley)
	Scott Craig (Bank of America)
	Tavis McCourt (Morgan Keegan)

With Apple set to report earnings from its second fiscal quarter after the close of the stock market today, several prominent Wall Street analysts have locked in their bets on profits, revenues, gross margin, and unit sales. Here's a breakdown to help investors pinpoint the winners (and losers) at the end of the day.

On average, analysts polled by Thomson Financial expect Apple to earn $1.07 per share on $6.95 billion in revenue for the three month period ending March, compared to management's guidance of $0.94 and $6.8 billion. Meanwhile, consensus estimates for Mac, iPod, and iPhone unit sales are ~2.1 million, ~8.5 to 10 million, and ~1 to 2 million, respectively.

Below are the latest estimates AppleInsider has on file for some of the leading Wall Street analysts currently providing coverage of Apple.

Piper Jaffray analyst Gene Munster

Profit: $1.19 per share
Revenue: $6.9 billion
Gross margin: 36 percent
Macs: 2.1 million
iPhones: 1.6 million to 2.0 million
iPods: 10.0 million to 10.5 million
Current rating: Buy
Price Target: $250

AmTech analyst Shaw Wu

Profit: $1.10 per share
Revenue: $7 billion
Gross margin: 33.5 percent
Macs: 2.15 million
iPhones: 1.5 million
iPods: 10.0 million
Current rating: Neutral
Price Target: $175

Citigroup analyst Rich Gardner

Profit: $1.23 per share
Revenue: $7 billion
Gross margin: 36.5 percent
Macs: 2.1 million
iPhones: 1.5 million
iPods: 9.5 million
Current rating: Buy
Price Target: $212

Lehman Brothers analyst Ben Reitzes

Profit: $1.05 per share
Revenue: $6.95 billion
Gross margin: 33.2 percent
Macs: 2.09 million
iPhones: 1.5 million
iPods: 10.3 million
Current rating: Overweight
Price Target: $195

RBC Capital analyst Mike Abramsky

Profit: $1.11 per share
Revenue: $7.2 billion
Gross margin: 34 percent
Macs: 2.2 million
iPhones: 1.8 million
iPods: 10.0 million
Current rating: Outperform
Price Target: $190

Morgan Stanley analyst Katy Huberty

Profit: $1.10 per share
Revenue: $6.634 billion
Gross margin: 35.8 percent
Macs: 2.02 million
iPhones: 1.0 million
iPods: 8.5 million
Current rating: Overweight
Price Target: $185

Bank of America analyst Scott Craig

Profit: $1.07 per share
Revenue: $6.9 billion
Gross margin: ???
Macs: 2.021 million
iPhones: 1.22 million
iPods: 10.0 million
Current rating: Buy
Price Target: $160

Morgan Keegan analyst Tavis McCourt

Profit: $1.10 per share
Revenue: $7.143 billion
Gross margin: 34 percent
Macs: 2.092 million
iPhones: 1.4 million
iPods: 10.549 million
Current rating: Underperform
Price Target: ???

Note to analysts: The above figures represent the latest data AppleInsider had on file as of Tuesday evening. If there have been changes to your model, shoot us an email and we'll be happy to make updates to this report.

iPhone redesign details; washed out MBP screens; free AT&T Wi-Fi

2008-05-03T19:35:00.001-07:00

Published: 07:30 PM EST

One site claims to have the most detailed information on the new iPhone's redesign -- including an unknown sensor. Meanwhile, users are reporting washed-out screens on MacBook Pros after waking from sleep, Apple is seeking real estate for a business office in New York City, and AT however, some companies are said to be certain enough to be crafting accessories around the described changes.

New MacBook Pros suffering from washed-out screens on wake

Some owners of Apple's recent, Penryn-based MacBook Pros are reporting washed-out screens on waking their systems under certain conditions, according to discussions on Apple's support forums.

Whether started fresh or woken from sleep, both 15- and 17-inch pro systems are suffering from a blue, washed out tint that remains present until users visit the Displays section of System Preferences, which invokes a color profile that automatically fixes the problem.

The issue affects only the primary display and doesn't touch external screens.

AppleInsider can vouch for the existence of the problem, which affects a 15-inch system.

Apple hasn't yet commented on the matter.

Apple close to landing NYC workspace

As much attention as it gets for its New York City retail spaces, the company is now looking to set up a business office in the heart of Manhattan, say purported real estate sources in contact with Silicon Alley Insider.

The Cupertino, Calif.-based electronics maker is believed to be on the verge of tendering an offer for between 10,000 and 15,000 square feet of high-priced office space near its Fifth Avenue retail store, at the edge of Central Park.

Reasons for the workspace buyout are unclear other than as an attempt to broaden Apple's business presence in the US, which is dominated by its Californian offices.

AT&T supplies hard-of-hearing plan for iPhone

AT&T this week has addressed usability concerns by launching its Text Accessibility Plan for the iPhone.

Built for customers who have little to no hearing, the $40 plan serves up unlimited SMS text messages as well as the iPhone's customary unlimited data and Visual Voicemail. In exchange, all calls are metered at 40 cents per minute.

Switching to the plan requires a two-step process, the carrier says: after activating the iPhone through iTunes, users have to fill out a disability certification form before the new plan becomes active.

AT&T offering free Wi-Fi to iPhone users

Reader reports at Mac Rumors and elsewhere claim that AT&T has begun offering free Wi-Fi Internet access to iPhone owners at key hotspots.

Visitors to Barnes & Noble or Starbucks shops who attempt to connect to the access points are prompted with a request for the user's phone number. After submitting the information, iPhone owners are given unrestricted access.

AT&T recently won hotspot privileges at Starbucks from previous operator T-Mobile and promised it would support cellular customers with the rollout in the future, but hasn't discussed its plans with the public.

WWDC extension; Radeon HD 3870; MacBook Air EVDO hack

2008-05-03T19:34:00.003-07:00

Published: 10:00 AM EST

Apple has extended the early registration discount period for its upcoming developers conference. Meanwhile, ATI is reported to be prepping the release of its Radeon HD 3870 for all-generation Mac Pros. And one MacBook Air owner has installed a stripped-down Verizon USB727 Aircard for dongle-less EVDO connectivity.

WWDC early registration extended

In traditional fashion, Apple on Tuesday extended the early registration deadline for its annual Worldwide Developers Conference (WWDC) set to take place during the second week of June.

Attendees who register before May 9th can still save up to $300, the company said. A standard E-Ticket to the week-long conference fetches $1295.00, while an E-Ticket 5�Pack is priced at $5180.00, which is the equivalent to getting the 5th ticket free.

Individuals seeking to enroll as Apple Developer Connection (ADC) members for the first time are also offered package deals that include entry to WWDC and a one-year enrollment as either a Select ADC ($1694.00) member or a Premier ADC (3,499.00) member.

Select ADC members get access to the ADC Software Seeding Program, Mac OS X and Xcode Tools, 2 Technical Support Incidents, and 1 ADC Hardware Discount. Premier members get access to the ADC Software Seeding Program, Mac OS X and Xcode Tools, 8 Technical Support Incidents, and 10 ADC Hardware Discounts.

Radeon HD 3870 for Mac Pro

Both Xlr8YourMac and Bare Feats are reporting that ATI's Radeon HD 3870 graphics card will be available sometime next month for both current and legacy Mac Pros.

The card is said to include 512MB of DDR4 video memory, support for dual-booting into Windows, and also support CrossFire mode when running under Windows.

Though performance and pricing have yet to be determined, both are expected to fall in line with that of Nvidia's recently released $279 GeForce 8800 GT upgrade card for first-generation Mac Pro systems.

The Radeon HD 3870 is expected to be sold as a standalone retail product and won't necessarily be made available as a build-to-order option through Apple's online store.

MacBook Air EVDO hack

MacNN reports on a courageous move by MacBook Air owner Jordan Bunnell, who recently disassembled his ultra-thin notebook in order to install a stripped-down Verizon USB727 Aircard for dongle-less EVDO connectivity.

Bunnell replaced the internal Airport card, located underneath the left-hand palm rest area, with the components inside the 727. To complete the operation, he also had to file away three screw mounts for the card to fit, as well as removing the USB connector to solder leads to the computer's USB port.

Bunnell also took the antenna connector port from a defective Airport card in order to boost signal strength, since replacing the bottom case would trap the wireless signal.

"I consistently get about 1,400-1,700Kbps vs. 1,800-2,000 when it was external," Bunnell said following of the finalized modification. "The hardest hit was the upload, I would get around 500Kbps, now I'm closer to 380Kbps."

AppleInsider notes that users interested in this modification should be advised that opening up a non-consumer serviceable computer will void its warranty.

Apple on MacBook Air, Jobs' plane, leases, R&D, NAND flash, more...

2008-05-03T19:34:00.001-07:00

Published: 01:00 PM EST

Apple in a regulatory filing with the Securities and Exchange Commission on Thursday discussed in detail some of the catalysts behind its industry-leading PC growth, expenditures for Steve Jobs' private aircraft, rising real estate and R&D costs, and its budget for impending capital asset purchases.

Mac sales

A 51 percent, or 772,000 unit, yearly rise in Mac unit sales for the second fiscal quarter ended March 29th was driven primarily by sales of the new MacBook Air, introduced in January, and the iMac, which was updated last August, the company said. Dollar wise, Mac sales increased $1.2 billion or 54 percent during the second quarter and increased $2.4 billion or 51 percent during the first six months of fiscal 2008 compared to the same periods in 2007.

In particular, notebooks had a standout showing with revenues and unit sales rising 58 percent and 61 percent, respectively, during the second quarter of 2008, and increasing 49 percent each during the first six months of fiscal 2008. Performance of the company�s desktop systems was also strong, with increased revenues and unit sales of 48 percent and 37 percent, respectively, during the second quarter, and 53 percent and 45 percent, respectively, during the first six months of 2008.

Net revenue from each Mac unit sold increased by 2 percent for the second quarter and first six months of 2008 due primarily to a shift on the part of consumers to higher-priced notebook systems, particularly the MacBook Pro and MacBook Air.

iTunes and WiFi router sales also up

Meanwhile, the Cupertino-based company attributed a $228 million or 35 percent second quarter rise in net sales of "music related products and services" at its iTunes Store to "heightened consumer interest in downloading third-party digital content, as well as the expansion of third-party audio and video content."

A good number of consumers are also going wireless, or upgrading their wireless networks, with Apple's new AirPort Express, Extreme, and Time Capsule products. The company said sales of the routers were the primary driver behind a $103 million or 33 percent second quarter increase in sales of "peripherals and other hardware." Revenues from wireless networking products also helped boost the product category $188 million or 31 percent during the first six months of 2008 compared to the same periods in 2007.

Costs related to Jobs' private plane

In 2000, shortly after Steve Jobs returned to Apple, the company awarded him a $43.5 million Turbo-Jet engine aircraft, named N2N, and entered into a reimbursement agreement for all expenses incurred during use of the private plane for official Apple business.

In the filing release Thursday, the company said it recognized a total of $30,000 and $580,000 in expenses pursuant to that reimbursement agreement during the three and six-month periods ended March�29, 2008, respectively, and $359,000 and $563,000 in expenses during the three and six-month periods ended March�31, 2007, respectively.

Steve Jobs' Turbo-Jet engine Gulfstream V dubbed "N2N"

A Morgan Stanley report from February had suggested that the more than half a million in costs related to usage of the' jet for the three month period ending December was a sign that the chief executive was working feverishly on international iPhone releases and new products. By comparison, the $30,000 spent thus far this year suggests Jobs has since traveled very little. Then again, it's been reported that bigwigs have recently been the ones doing the trekking to make his acquaintance, and not the other way around.

Real estate, retail, and capital asset purchases

Apple leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements, of which major facility leases are usually for terms of 3 to 15 years and generally provide renewal options for terms of 3 to 7 additional years. Leases for retail space are generally for terms of 5 to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options.

As of September�29, 2007, the company's total future minimum lease payments under noncancelable operating leases were $1.4 billion, of which $1.1 billion related to leases for retail space. As of March�29, 2008, total future minimum lease payments related to leases for retail space increased $192 million to $1.3 billion, and Apple Retail as a whole employed approximately 12,000 full-time equivalent employees.

Apple's cash payments for capital asset purchases were $384 million during the first six months of fiscal 2008, consisting of approximately $138 million for retail store facilities and $246 million for corporate infrastructure, including information systems enhancements.

Going forward, the company said it anticipates spending $1.25 billion for capital asset purchases during 2008, including approximately $400 million for expansion of its retail segment, and approximately $850 million to support normal replacement of existing capital assets, including manufacturing related equipment and enhancements to general information technology infrastructure.

R&D spending and head-count

Meanwhile, expenditures for R&D increased 49 percent or $90 million to $273 million in the second fiscal quarter of 2008 compared to the same period in 2007, and increased 41 percent or $152 million to $519 million during the first six months of 2008 compared to the same period in 2007.

Apple said the increases were due primarily to a rise in R&D head-count for the current year to support expanded R&D activities and higher stock-based compensation expenses. In addition, R&D expense for the first half of 2007 excluded $27 million of capitalized software development costs related to Mac OS X Leopard and iPhone. No software development costs were capitalized in 2008.

"Although total R&D expense increased 49 percent, it remained relatively flat as a percentage of net sales given the 43 percent and 38 percent increases in revenue in the second quarter and first six months of 2008 compared to the same periods in 2007," the company noted. "[Apple] continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company�s core business strategy. As such, the Company expects to make further investments in R&D to remain competitive."

Component concerns and long-term NAND flash contracts

Although most components essential to Apple's business are generally available from multiple sources, certain key components including, but not limited to, microprocessors, enclosures, certain liquid crystal displays (�LCDs�), certain optical drives, and application-specific integrated circuits (�ASICs�) are currently obtained from single or limited sources, the company said, which could pose supply and pricing risks.

At the same time, those components that are available from multiple sources including, but not limited to, NAND flash memory, dynamic random access memory (�DRAM�), and certain LCDs, are at times subject to industry-wide shortages and significant commodity pricing fluctuations.

In 2006, Apple entered into long-term supply agreements with Hynix Semiconductor, Inc., Intel Corporation, Micron Technology, Inc., Samsung Electronics Co., Ltd., and Toshiba Corporation to secure supply of NAND flash memory through calendar year 2010. As part of these agreements, the company prepaid $1.25 billion for flash memory components during 2006, which are to be applied to certain inventory purchases made over the life of each respective agreement.

As of March�29, Apple said it had utilized only $326 million of the prepayment, leaving it with $924 million worth of prepaid NAND flash for iPhones, iPods, and Macs over the next 33 months.

Safari for Windows market share triples following SW Update push

2008-05-03T19:25:00.003-07:00

Published: 10:00 AM EST

Apple Inc. saw its share of the Windows browser market triple immediately after it began encouraging users of the Microsoft operating system to download and install its Safari web browser through the widely deployed Apple Software Update mechanism, according to a new report.

Net Applications, a firm which tracks browser share and operating system usage, noted in a release Thursday that Safari 3.0 on Windows never gained much traction, with its share peaking at just 0.07 percent. However, Safari 3.1 on Windows has rapidly muscled gains over the past six weeks, already tripling Safari 3.0's peak at 0.21 percent.

The surge follows a move by the Cupertino-based company back on March 18th in which it began pre-selecting Safari 3.1 installs as part of its Software Update service installed on millions of PCs that run the company's iTunes software.

"Normally, Apple's Software Update service is not used for delivery of new products.� Clearly, this is a calculated risk by Apple that has annoyed and/or alienated some users," Net Applications said. "However, the question is, did it work?� Did Apple gain browser market share on Windows based on this move?� The answer is yes."

Indeed, Apple became the subject of much criticism following the move, as industry watchers and rival browser developers charged the company with using its Software Update mechanism as as a trojan horse to gain an unfair advantage in the battle for share of the web browser market.

In response, the company a month later issued a revised version of the Software Update mechanism for Windows separating new software releases from regular updates to applications already installed on users' machines. It also added a toggle to turn off automatic software updates, though the box remained checked "on by default.

UK's Carphone Warehouse now completely out of iPhones

2008-05-03T19:25:00.001-07:00

Published: 10:00 AM EST

Carphone Warehouse, the high street retailer of UK-based wireless operator and exclusive iPhone provider O2, has completely run dry of both iPhone models as Apple is reported to have permanently ceased production of the 8GB model.

Word of the drought, reported by The Guardian, comes exactly one week after the retailer, along with O2, simultaneously noted via their websites that the 8GB version of the touch-screen handset had sold out and would not be restocked.

An internal memo distributed amongst O2 retail management at the time stated that entry-level iPhone had been declared EOL or "end-of-life," a term often associated with products at the end of their shelf life. Products denoted as EOL are no longer manufactured but may continue to be sold until existing channel inventories are depleted.

Stock of both 8GB and 16GB iPhones has also been spotty in the US over the past month, but Apple has been replenishing inventories in irregular intervals. The electronics maker, however, appears to be making less of an effort to restock its partners abroad, as adoption of the handset in the Europe has lagged far behind that of the US.

Europeans have largely been unimpressed with the high cost and slow internet access associated with the first-generation iPhone. The handset runs only on 2.5G wireless networks, which is increasingly seen as yesteryear technology in Europe, a region rich with 3G, or next-generation wireless networks that perform up to ten times as fast.

As such, Europeans are for the most part believed to be holding out for the much-anticipated 3G version of the Apple handset which is widely expected to make its debut at or around the company's annual developers conference during the second week of June.

Unlike the Cupertino-based iPhone maker, which has become proficient in managing channel inventories of handheld devices thanks to years of iPod sales, its European partners are believed to have grossly miscalculated the number of first-generation iPhones that they'd be able to sell.

To remedy the situation and make way for 3G models, Apple last month began encouraging those partners to deeply discount their existing inventories of 8GB iPhones. T-Mobile Germany was first to bat with a 300 euro discount, bringing the model down to 99 euros, and O2 followed with a 100 pound cut, bringing its local offering to 169 pounds and spurring a near instantaneous sellout.

Although Apple has reportedly suggested that Orange, its exclusive iPhone provider in France, do the same, the carrier has thus far balked at the recommendation.

UK's Carphone Warehouse now completely out of iPhones

2008-05-03T07:36:00.001-07:00

Published: 10:00 AM EST

Piper Jaffray addresses 15 more 'unanswered Apple questions'

2008-05-03T04:52:00.003-07:00

Published: 09:00 AM EST

Piper Jaffray analyst Gene Munster on Thursday issued a report to clients that analytically addresses 16 more unanswered questions surrounding the Apple story, including some pertaining to the company's iPhone hardware roadmap and approach to the enterprise.

Back in May of 2006, the analyst issued a similar report with comments on more than 20 questions about the Cupertino, Calif.-based company that had been lingering in the minds of investors and enthusiasts. He later followed up by addressing 16 more questions that november.

The latest report addresses a broad spectrum of questions, ranging from Munster's take on the iPhone hardware roadmap to Apple's international retail expansion.

Both the questions and answers are being republished in full in order to offer readers the full benefit of the analyst's insight:

Questions on General Business Operations:

Will Apple alter its pricing strategy?
Apple sells its products at the full MSRP 364 days a year (with one exception on Black Friday). And because its products can garner a premium, we do not expect Apple to alter its stance towards relatively higher prices. From time to time Apple will lower prices to drive demand, as we have seen with the 2/19 shuffle price cut to $49 from $79, and the recent price actions taken in Europe with the iPhone. For more on iPhone pricing, see below. It's important to note, Apple legally can not influence the retail price of its products sold through 3rd parties. Talk that Apple has broad pricing control are false.

How does Apple approach the Enterprise business?
In the past, Apple has indicated that at its core, it is a consumer company. We believe this is still true; however, we believe Apple is slightly changing its perspective on selling to the Enterprise. The recent iPhone software announcements with Exchange support and other enterprise solutions provide Apple with a foot in the door. In fact, 1/3 of all Fortune 500 companies have approached Apple with interest in the iPhone Enterprise Beta program. While Apple will let consumer demand drive the product decisions it makes, the company recognizes that every consumer is likely PC user at work, and we expect the company to focus on improving its outreach to Enterprise users. Overall, we see this as a slight change, and we expect Apple to remain singularly focused on the consumer segment.

Will Apple TV become a full 4th cylinder business, or will it remain a hobby?
Currently, the Apple TV represents a very small part of Apple's overall business. In fact, Steve Jobs refers to it as a "hobby", rather than a complete fourth cylinder of Apple's strategy (along with iPod, iPhone, and Mac). During Macworld, the company acknowledged that it did not get the Apple TV right the first time around. But we believe Apple is more confident in the business after the recently updated software update, internally dubbed "Take 2". Widespread adoption of the product is limited by the need for a broadband internet connection and a widescreen TV, but the movie rentals offering is becoming increasingly robust, and we believe Apple intends to continue innovating on the Apple TV platform. That said, our expectations for the Apple TV business remain conservative.

Mac Related Questions:

Why did Apple stop selling a $999 iMac?
When Apple last redesigned the iMac, in Aug-07, the company dropped the 17" model at the $999 price point. We believe the company ended shipping the 17" iMac simply because it was not selling as well as the 20" model. And it is likely that the company increased the margins on the iMacs by reducing the amount of SKUs in the lineup, particularly with the elimination of an entire screen and form factor size.

How is Mac growth in the education market relative to overall Mac growth?
We believe Apple's growth in the education markets is outpacing its overall Mac growth. And this is significant considering Mac units grew 51% y/y in the March quarter. Specifically, we believe higher ed has been growing significantly faster for Apple than overall Mac units, and the K-12 business has also been a key driver.

What are the key selling points of a Mac?
Mac market share is rising, and we believe consumers are choosing to buy Macs for four reasons: 1) Apple offers unique, eye-catching hardware, 2) Apple's OSX is widely understood to be more secure and stable than Windows, 3) The iLife suite (iTunes, iPhoto, iMovie, etc.) attracts users who are looking for a digital lifestyle solution, 4) Apple has worked to improve the Mac buying experience, especially in its retail stores.

How is Apple approaching Multi-Touch?
We believe the Multi-Touch gestures recently added to the MacBook Air and MacBook Pro are just the beginning of Apple's exploration of Multi-Touch on the Mac. Apple is clearly leveraging its technology portfolio from the iPhone to improve the Mac experience as well, and we believe Apple will continue to add Multi-Touch gestures to its notebooks. Currently, these gestures require the same touch-sensing technology used in the iPhone, but they use a traditional looking trackpad. Eventually, we expect Apple to change the trackpad to backlit color screens for a more dynamic user interface on the Mac. And ultimately, we expect Apple to develop a full touch-screen MacBook, although not until the technology has fully matured over the next 3-5 years. We believe Multi-Touch is a core differentiator of Apple products (relative to other touchscreen devices), and Apple has adequately protected its innovations in order to maintain a leading edge in the touchscreen device categories (phones, portable computing devices like the iPod touch, and Mac notebooks).

How serious is Apple about the enterprise opportunity for the Mac?
When we talk about building products, it's a consumer focus. Choices that favor a consumer and the purchasing behavior of a consumer.Businesses are looking at Mac and its great technology regardless. Could pushing enterprise opportunity hurt the consumer biz? Maybe, there are concerns. We believe that they will always focus on driving the product forward. It's Apple's DNA. Driving forward � not hesitant to eat their young.

In the coming years, how will people use their Macs in ways they aren't today?
In addition to significant advancements in touchscreen features, we expect Apple to continue to invest in the digital lifestyle trend. From the beginning, Apple has led the way with its iLife suite of applications for digital music, movies, and photos. We believe this focus will be primarily driven by software, with periodic updates to the iLife suite. Additionally, we believe that devices in Apple's entertainment ecosystem like the iPod and Apple TV will augment the digital lifestyle trend on the Mac side. The integration between the elements of the ecosystem is a critical piece of the Mac growth, from the Halo Effect of those devices.

On

Apple's Jobs summonsed over latest backdating charges

2008-05-03T04:52:00.001-07:00

Published: 11:00 AM EST

Apple chief executive Steve Jobs and other members of the company's leadership have been summonsed to appear before a court as part of a new lawsuit regarding the electronics maker's long-running options backdating scandal.

The latest claim come by way of the Boston Retirement Board, which is seeking to prove the company's directors wasted more than $105 million on the extra value of backdated stock options granted to Jobs, according to FindLaw.com.

The pension fund alleges that it now has specifics to back up its charges, which it reportedly gathered from a records inspection action initiated earlier in the Santa Clara County Superior Court.

It has yet to disclose those details, however, because the court has not yet ruled on how the confidential information should be treated. As such, the suit says, those specifics might have to go into an amended or sealed version of the complaint to be filed later this year.

Over the past two years, various other Apple shareholder groups have seen their lawsuits over the backdating issue dismissed or stalled for lack of evidence. This was most recently the case with a suit brought about by the the New York City Employees' Retirement System.

A California judge granted Apple's motion for dismissal in that case back in November, allowing the investors leave to refile an amended complaint as part of a derivative suit.

As part of his ruling, the judge noted that Apple's stock price didn't fall as a result of the backdating, which is somewhat of a prerequisite for most shareholder claims against corporations in similar matters.

That suit, the new complaint filed this week, and all those similar, have concern the Apple Board's approval of hundreds of millions of stock options for Jobs and other top-level executives from 1997 to 2001, which the company admitted to in October of 2006.

"The documents Apple has produced provide critical details about Apple's backdating practices and confirm that all of Apple's directors were aware of and participated in the backdating scheme," the latest complaint says.

Among those other members of Apple's leadership summonsed as part of the suit are William Campbell, Millard Drexler, Arthur Levinson, Jerome York, Gareth Chang, Edgar Wollard, Fred Anderson and Nancy Heinen.

Apple's bionic ARM to muscle advanced gaming graphics into iPhones

2008-05-03T04:51:00.003-07:00

Published: 05:00 PM EST

The next generation of iPhone appears set to claim exclusive access to advanced graphics core and video decoding technology, thanks to a secret licensing deal between Apple, mobile graphics leader Imagination Technologies, and Samsung, the iPhone's ARM "system on a chip" manufacturer. The result may be an ideal platform for handheld gaming and high definition video playback.

Imagination's New 3D SGX Core

The current iPhone model and most other mobile devices use a version of the PowerVR MBX graphics processor core developed by Imagination. Mobile processor manufacturers such as Intel, Marvell, Samsung, and Texas Instruments have licensed this core and include it on their SoC or "system on a chip" designs, which pack multiple processing cores, memory, and interface components into a single, tightly integrated package.

The PowerVR MBX graphics core used in Apple's iPhone, the Nokia N95, and other popular phones supports the features of OpenGL ES 1.1. Many mobile chip manufactures have a design license to modify and develop their own SoC parts, which include Imagination's MBX graphics core.

Imagination's next generation graphics core, the PowerVR SGX, introduces OpenGL ES 2.0 support, along with a Universal Scalable Shader Engine that provides mobile devices with highly efficient, shader-based 3D graphics. SGX is not only backwards compatible with code developed for MBX, but also actually runs it with better performance and efficiency.

HD Video with the PowerVR VXD Core

Imagination has also developed VXD decoder codec components capable of playing back high definition video from a mobile device either directly or output to an external display.

The VXD core specializes in highly power efficient decoding, making it possible to handle HD video content with comparable power consumption to existing audio playback chips.

Imagination licenses both its VXD codec cores and the new SGX graphics processor core designs to chip manufacturers, but access to the latest generation of its intellectual property has been negotiated in a new way.

Samsung's Manufacturing License for SGX and VXD

In a press release issued earlier today, Imagination announced signed a licence agreement with Samsung "with respect to certain POWERVR SGX graphics and VXD video IP cores."

The release noted that the license "enables Samsung to manufacture semiconductor devices which integrate these IP cores from Imagination." According to a source familiar with the agreement, this deal is unique in that it is only a manfacturing licence, and is the first time Imagination has issued one on such terms.

The source reports that Samsung does not have a license to design chips that include the cores, only to produce them. This is different from previous licensing agreements related to the MBX graphics core, for which Samsung does have a design license.

The Mysterious Licensee

Last July, Imagination announced a deal to license its "next generation graphics and video IP cores to an international electronics systems company under a multi-use licensing agreement." The electronics system company was not named.

The release stated that "the SoCs to be developed under this license agreement will be produced for this new partner by Imagination�s existing semiconductor partners and/or new chip manufacturing partners."

The fact that this "electronics system company" was both a "new partner" and not itself a chip manufacturer strongly suggests that the international electronics mystery company was in fact, Apple, Inc., which stands among very few other companies as new to mobile graphics core licensing yet dependent upon third party manufacturers who are already Imagination partners.

Combined with knowledge that Samsung is now licensing the next generation SGX and VXD designs for manufacturing, this indicates that Apple has secured unique Imagination technology for its own exclusive use, and is using Samsung to manufacture the new SoC parts for future models.

On

iPhone Optus rumor; Apple TV allows movie sales; Mac web share

2008-05-03T04:51:00.001-07:00

Published: 06:30 PM EST

Apple may use Australia as a testbed and sell the iPhone as a non-exclusive in the country, says one report. Meanwhile, Apple has enabled direct movie purchases from the Apple TV, Mac and iPhone web share has dropped in April as the iPhone becomes Flickr's top cameraphone. Also, Apple is moving some of its support efforts from California to Texas, and new iMacs have been tested against earlier models.

iPhone rumored for Australia as Optus non-exclusive

In an unusual report, CNET Australia on Thursday claimed knowledge that the iPhone will arrive in Australia under very different terms than for past carriers.

Similar to recent rumors circulated regarding Europe and Latin America, the technology site points to an alleged industry insider who says the phone will be available first through a local carrier, Optus -- but that the provider won't have sole rights to the device, as AT Optus is expecting to launch with future iPhone models rather than the existing generation, according to the anonymous source. Rogers Wireless in Canada has already followed a similar pattern, announcing a Canadian iPhone deal but leaving virtually all details until later.

Unlike Canada, however, the Australian launch has been rumored to include an unlocked model that could be used with any carrier available to the island nation.

Apple flicks switch on Apple TV movie sales

At the same time as Apple has announced day-and-date movie sales through iTunes, the company has also quietly pushed out an update to the Apple TV version of the store that allows direct movie purchases.

Beforehand, users of the set-top box had their direct access limited to rentals, with viewing of purchased titles limited to those synchronized from a host Mac or PC.

The change doesn't require a firmware upgrade and has also altered the front-end of the store to list top sellers as well as the existing rental options.

iPhone, Mac share dip in April

While Safari marketshare tripled in April, the same can't be said for the iPhone and the Mac in the same month, results from Net Applications show.

The web firm observes that Mac share among its client sites fell significantly between March and April, dropping from 7.48 percent to 7.01 percent in the four-week span. That share has largely been taken by Microsoft, which climbed from 91.57 percent to 91.99 percent at the same time.

iPhone share also declined in the period from 0.15 percent to 0.14 percent, though it remains the single largest mobile client tracked at Net Applications and the only one to register a visible influence.

The monitoring company doesn't offer an explanation for the drop.

iPhone dominates Flickr's camera phone share

Among Flickr's many camera phone contributors, the iPhone is the clear frontrunner, as pointed out by Computerworld.

The Apple phone in recent months has surged past the previously leading Nokia N95 to take the top position at the photo storage site -- a feat which comes despite the N95's superior equipment, which includes a five-megapixel sensor (versus the iPhone's two), autofocusing, and a flash.

Other phones in the top five run well short of these two competitors, with Nokia's N73 as well as Sony Ericsson's K800i and W810i rounding out the devices most likely to have taken photos appearing on Flickr pages.

Apple moves Elk Grove support jobs to Texas

Apple on Thursday expanded its presence in Texas by revealing that it will transfer 174 jobs from its Elk Grove, California call center to its Austin location.

Those affected by the transfer are being asked to either move to follow their positions or else to seek alternative jobs at the West coast office.

The company hasn't offered an explanation and has asked employees to remain silent on the matter, though it takes care to state that Elk Grove operations have grown dramatically since 2005, jumping by 50 percent to 1,100 staffers.

In July of last year, Apple was discovered to be expanding operations at its Austin facilities to reduce overcrowding problems at its Cupertino, California buildings.

New iMacs show slight performance gains

Synthetic benchmarks show the 3.06GHz iMac advancing only slightly over its predecessor, according to tests run by Primate Labs.

The Canadian developer of the GeekBench testing suite notes that its test sees the Intel Penryn-based system outpacing its 2.8GHz ancestor by slightly more than 7 percent. The findings lead the company to suggest that those concerned with value for money are better off avoiding the top-end system unless video and storage are top priorities.

"If you�re looking for the best value in terms of raw processing power, the best iMac to get is the base model," Primate says. "Even after upgrading the RAM in the base model it�s still more cost-effective than the mid-range 20-inch iMac."

10.5.3 Server details; Apple updates; iPhone exclusivity in question

2008-05-03T04:50:00.005-07:00

Published: 06:45 PM EST

Apple is reportedly winding down updates to its 10.5.3 Server update, AppleInsider has learned. Officially, Apple has released updates for iMac graphics and its Java engine in Leopard, and Microsoft has finally updated Messenger for Macs. Unofficial reports have Apple changing its mind on exclusive carrier deals, and say that iPhone users have very different tastes than BlackBerry owners.

New Leopard Server 10.5.3 seed

Similar to its progress with the client version, Apple's testing process for 10.5.3 Server is quickly coming to an end, according to people familiar with a new test build.

Labeled as build 9D25, the new seed reportedly fixes only a handful of unresolved bugs, including issues with the Mail and Web Server components, the Server Assistant, and Slapconfig.

Those aware of the update also tell AppleInsider that developers have been asked to center their testing primarily around these areas as well as multiple server manager components, Directory functions, and servers for both podcasting and Wikis.

Apple is still expected to finalize and release 10.5.3 for users within the next two weeks.

iMac ATI Radeon HD Graphics Firmware Update 1.0.1

Apple has issued version 1.0.1 of its ATI Radeon HD firmware update (848KB) for its new iMacs released yesterday.

The minor fix increases system stability for systems using either the Radeon HD 2400 XT or Radeon HD 2600 Pro, the company says.

Java for Mac OS X 10.5 Update 1

Also launched is Update 1 for Leopard's Java engine (57MB).

The upgrade installs Java SE 6 1.6.0_05 for all compatible Macs, bringing them up to date with the more recent codebase. The update doesn't replace J2SE 5 or override earlier Java preferences.

Microsoft releases Messenger for Mac 7 with video

Ending a relatively long quiet period of development, Microsoft on Thursday released Messenger for Mac 7.

Video support is the highlight of the update, the company explains. Although currently limited to corporate environments, the feature allows multi-user audio and video chats and is the first in the Mac history of the product.

All users also receive support for automatically finding other Windows Live users through Bonjour local networking, a contact list search function, and the ability to rename contacts.

More details on video chat for home users will be available in "coming months," Microsoft notes.

Apple rethinking exclusivity deals for Europe, Latin America?

Apple could break from its current practice of choosing an exclusive carrier when it brings the iPhone south of the US, the Spanish-language business paper Cinco Dias reports.

The California electronics giant is reportedly having doubts after witnessing poor sales in Europe, which have often seen customers unlock the phones themselves for use on unsanctioned carriers.

Alleged sources close to negotiations say the company may allow the phone to be sold through multiple providers in Latin American nations. This is likely due to the different cellular service climate in the region, according to the paper: while large carriers like Telefonica Movil dominate in some countries, they only hold on to minority shares in others.

Future European deals may also see Apple breaking its mould, the report adds. Discussions with Telefonica in Spain have been ongoing for months, while Apple may use Italy as a testbed and include more than just Telecom Italia as a provider.

Apple has declined comment on the claims, but earlier this year made it clear that the company isn't married to its one-carrier-per-country model.

Study: iPhone, BlackBerry appeal to very different audiences

Although they compete in the same market, the iPhone and BlackBerry lines appeal to two very distinct groups of users, a new study from ChangeWave finds.

Users of Apple's touchscreen device typically skew towards its interface. About 36 percent of respondents who use an iPhone most like the overall integration of the iPod, phone, and web functions, while 27 percent like the touchscreen interface specifically and 16 percent talk up its overall ease of use.

BlackBerry owners, however, are almost exclusively devoted to e-mail. A full 56 percent of users cite e-mail as the appeal of their devices, with virtually all other factors falling well under the 10 percent mark -- including the physical keyboard, at 5 percent.

What users complain about also varies sharply, the researchers point out. Despite its reputation, RIM's BlackBerry is more likely to generate complaints about its keyboard (11 percent of users), especially on the small Pearl series. Among iPhone owners, the most common yet unique complaint is being locked to AT&T in the US, with the lack of copy-and-paste text coming next.

Both are united in their dislike of being limited to slow EDGE data speeds with GSM-based versions of their devices, ChangeWave says.

As much as iPhone advocates may enjoy their devices, however, the group is also much more likely to draft wish lists for a new model. About 19 percent of users want 3G Internet speeds, with 18 percent seeking third-party native programs and 15 percent hoping for GPS navigation. Business e-mail support and voice dialing come next at 10 and 8 percent respectively.

Most of these features are likely to be resolved in June, when Apple is predicted to launch its 3G handset and new iPhone firmware.

BlackBerry users, by contrast, are said to be conservative and have little to demand.

"The bottom line for RIM [BlackBerry] owners continues to be, 'If it ain't broke, don't fix it,'" ChangeWave observes.

Apple announces same day as DVD release iTunes movie sales [u]

2008-05-03T04:50:00.003-07:00

Published: 08:00 AM EST

According to an article in Hollywood Reporter, Apple is expected to announce as early as Thursday a new deal with a wide array of major and mini studios to offer many new movie releases, including a broad slate of top-shelf films, for direct purchase at its iTunes Store at the same as their DVD release. [Update: Apple has formally announced the deal.]

The movie sales deal is an expansion of the January announcement that presented movie rentals in iTunes from all the major studios. Only a few movie studios, including Disney, had earlier agreed to sell their movies in iTunes starting in 2006, with the others cautiously testing the waters only in movie rentals beginning earlier this year.

Rental only titles now for sale

Apple originally only offered direct movie sales, not rentals, in a strategy that hoped to replicate the success of iTunes in selling music. The other studios were apparently worried that direct movie downloads would eat into physical DVD sales and anger high volume DVD movie retailers such as Wal-Mart. While Apple now sells more music than any other retailer, its movie business is still brand new. Fears of upsetting the current DVD retailers, who saw Apple as a looming threat in movies after having eaten up the lion's share of music sales, were certainly valid given the market power those retailers wield over existing DVD sales.

However, the popularity of Apple's iTunes has demonstrated an enthusiastic demand for digital downloads, which has reportedly been dramatic enough to prompt all the majors to offer their movie catalogs both for sale and for rent. The studios expected to be included in the movie sales announcement are Fox, Walt Disney Studios, Warner Bros., Paramount, Universal, Sony Pictures, Lionsgate and New Line. The deal reportedly will not include new titles from MGM but does extend to boutique firms such as Magnolia and Image Entertainment.

The movie rentals deal announced in January was tied to the release of the Take Two software update for Apple TV and updates for iTunes, the iPhone, and current iPods to allow users to rent titles for a 30 day period for $3 to $4, with select titles being offered in high definition from Apple TV. The new studios' titles have only available for rent, not for sale, which resulted in some confusion for iTunes users.

No business like show business

Today's announcement is also expected to release new numbers outlining the success of Apple's movie revenue to date. Back in March, Disney CEO Bob Iger publicly stated that its studios had sold 4 million movies via iTunes since partnering with Apple to become the first movie studio to sign up in 2006. Outside of Disney, MGM, and Paramount, a few major new releases from other studios have already been offered for sale in recent weeks on iTunes, including Fox's "Juno."

Apple originally announced plans to have a thousand movie titles available for rental, but many of those titles were held up by complications in establishing the digital rights required to offer them outside of DVD releases. Many writers and other talent have historically only signed off on royalties involving theater and DVD releases, so progress in digital downloads has hit some snags as the business adjusts to support iTunes' direct download distribution.

Convincing the movie studios to follow Apple's lead has apparently been a little more difficult than signing on music labels or lining up TV content. Many of the download-to-own titles offered by the early participating movie studios were limited to older titles. Apple's ability to sell those titles has encouraged the studios to expand their offerings both in the scope of their library selection and in the option to buy movies directly rather than only renting.

Time Warner CEO Jeffrey Bewkes announced yesterday that Warner Bros. will experiment with video on demand releases simultaneous with DVDs. Apple's new movie deal was originally expected to be announced earlier in the week at the fifth anniversary of iTunes on Monday. The announcement will put significant pressure on other online movie rental services as well as Amazon's Unbox and Microsoft Xbox Live Marketplace, which both rent and sell movies but have not been able to report significant movie downloads.

Update: Apple in an official press release has now confirmed that releases and catalog titles will be available from 20th Century Fox, The Walt Disney Studios, Warner Bros., Paramount Pictures, Universal Studios Home Entertainment, Sony Pictures Entertainment, Lionsgate, Image Entertainment and First Look Studios.

"We're thrilled to bring iTunes Store customers new films for purchase day-and-date with the DVD release," said Eddy Cue, Apple's vice president of iTunes. "We think movie fans will love being able to buy their favorites from major and independent studios."

New releases available for purchase on the iTunes Store this week, concurrent with their DVD release, include "American Gangster" and "The Diving Bell and the Butterfly." Other popular titles now available for purchase include "Juno," "Cloverfield," "I Am Legend," "There Will Be Blood," "Alvin and the Chipmunks" and "Walk Hard: The Dewey Cox Story."

Movies purchased from iTunes can be viewed on an iPod with video, iPhone, Mac or PC or on a widescreen TV with Apple TV, with new releases priced at $14.99 and most catalog titles at $9.99.

Lehman initiates coverage of Apple, sees Mac share doubling by 2013

2008-05-03T04:50:00.001-07:00

Published: 01:00 PM EST

Global financial services firm Lehman Brothers initiated coverage on Apple this week with an Overweight rating and $195 price target given the company's ongoing share gains in the PC market, potential for open-ended growth with new iPhones, and prospects for groundbreaking new products later this year and next.

"Despite the economic environment, we do not believe that Apple�s momentum has waned in Macs," analyst Ben Reitzes, who recently made his way from UBS, wrote in his first research note at Lehman. "In fact, Macs may have reached a tipping point with share on its way toward doubling over the next 3-5 years."

In addition, Reitzes believes Apple is the best positioned out of all major technology players to capitalize on a new industry theme that is driving the desire for content and information to be multi-purposed and displayed on many types of devices.

The analyst said the first step of this content expansion was the proliferation of the Internet to computers, while the second phase was arguably sparked by the iPod. He believes the third phase will come from sales of "smart" devices, which will include everything from smart phones to ultra-portable PC�s to sleeker notebooks.

"We believe that Apple is the company best positioned in our coverage universe to take advantage of the content expansion theme�by far," Reitzes told clients. "We believe the content expansion trend drives obvious upgrade paths within the Apple eco-system with regard to iPhones, iPods, Macs and eventually Apple TV.

Another major advantage on Apple's part is the one-two punch of its scalable Mac OS X software architecture and international retail chain, both of which combine to allow the company to more rapidly introduce products into new open-ended growth markets faster than its competitors.

"Not only does the content expansion help create a platform for revenue growth, but for margin expansion as well. Apple�s vertically integrated model has 'trapped' in the wallets of consumers better than any business model we have seen in years," Reitzes wrote. "For example, we estimate that Apple�s Mac units will grow about 33 percent this year and about 20 percent next vs. only about 10-12 percent growth for the global PC market."

Apple is also better positioned than most of its peers to avoid over-exposure in slowing international markets, the analyst told clients. While Dell leads the category with only 39 percent international exposure, Apple is a close second at approximately 40 percent but "is gaining so much share in the US PC market and has so much potential with the iPhone" that "it is still possible perhaps 'to look the other way.'"

Reitzes added that potential exists for Apple to further boost its share gains in the PC market should the company manage to put forth a viable and affordable competitor in the ultra-mobile/ultra-portable PC market that is currently dominated by over-priced machines that cost several thousand dollars and run only Microsoft software.

"We believe there is a market for a very small PC in the sub-$1,000 range optimized for media playing, internet surfing and even navigation," he wrote. "We had expected that Apple could get a product like this out this year but it seems that it could be next year."

Specifically, the analyst said his checks indicate that Intel�s Silverthorne chip for mobile Internet devices may note have been quite ready for the kind of battery life that the Mac maker wanted. However, the chip's successor, Moorestown, is due out in late 2009, which could finally usher Apple into the ultra-mobile space.

"We believe that this kind of device with high speed wireless connectivity could eventually account for over 10s of millions of units, adding further support to the notebook market," Reitzes wrote. "We believe Apple would be the big winner if this market were to develop."

In the meantime, the analyst sees Apple benefiting from the best portfolio of portable products on the market, including the new ultra-portable MacBook Air, which he believes the company may expand to "a whole family of MacBook Air laptops with different sizes" at or around its annual Worldwide Developers Conference (WWDC) in June.

He also expects the highly anticipated 3G iPhone to be announced in June -- though not necessarily at WWDC -- possibly in multiple configurations and more attractive prices with new features such as contact search, better enterprise support and video chat.

"We believe new iPhones could ship in July and would not be surprised to see Apple ink several new international partners in that time frame, including in China ," he added. "Down the road in [the second half of] calendar 2009, we believe Apple is likely to introduce a new category of ultra-portable devices maximized for media-playback and internet surfing."

For Apple's second fiscal quarter of 2008, results of which will be announced Wednesday (tomorrow), Reitzes is modeling for earnings of $1.05 per share on revenues of $6.95 billion, which he said may prove conservative given the potential for higher than expected gross margin.

Looking ahead, the Lehman analyst explained the biggest risks to Apple not achieving his $195 price target are the economic environment and consumer spending trends. "Key areas to watch are iPod inventory levels and execution risk in Apple�s ability to launch new iPhones successfully in the US and international markets," he said.

Apple announces same day as DVD release iTunes movie sales [u]

2008-05-03T04:49:00.005-07:00

Published: 08:00 AM EST

Video speed test: 2.5G EDGE iPhone vs. mock 3G HSDPA iPhone

2008-05-03T04:49:00.003-07:00

Published: 11:00 AM EST

One Apple iPhone owner has posted to YouTube a video shootout that pits an iPhone running on a 2.5G EDGE network against one rigged with 3G HSDPA access in a simulated speed test.

The mock 3G iPhone was connected via WiFi to an iMac whose internet connection was supplied with a HSDPA modem and then shared, while the traditional 2.5G iPhone was run on a standard overseas EDGE wireless network.

Based on the test results, which are largely theoretical given fluctuations in mobile wireless speeds from region to region and provider to provider, the 3G iPhone loaded the same web page as the 2.5G iPhone in nearly half the time.

iTunes movies sold at loss; MBP display stripes; Microsoft and Yahoo

2008-05-03T04:49:00.001-07:00

Published: 06:55 PM EST

Apple is allegedly taking a hit on each iTunes movie sale to spur permanent downloads. Also, owners of recent MacBook Pros are suffering from vertical display stripes on their displays' backlights, Microsoft and Yahoo may be closing in on a merger deal, and Apple has issued two iPod updates.

Report: Apple taking loss on each iTunes movie

Apple's decision to offer movies through the iTunes Store on the same day as DVD releases came at a price, the Wall Street Journal claims.

Although the prices of movies will remain the same, the asking amount reportedly drops below the wholesale cost. A new release movie bought for $15 costs the iPod maker roughly $16, the newspaper says while pointing to an anonymous person as the source.

Apple is believed to be making the move partly out of frustration with the lackluster performance of its video service, which is considered the market leader but has failed to gain acceptance as quickly as its music counterpart.

Other video download stores and media devices, including Blockbuster-owned Movielink and Vudu's set-top box service, have also had an advantage by offering their downloads at the same time as physical copies, while Cupertino, Calif.-based Apple has at times been forced to wait as much as a month before it can sell a video title.

MacBook Pros plagued with backlight "stripe" issues

Owners of Apple's current-generation MacBook Pro models are encountering an intermittent problem with the backlighting on their devices, according to numerous reports in the company's discussion forums.

Users report an intermittent issue in which alternating vertical elements of the LED backlighting on the displays fail to activate after waking from sleep, creating a "stripe" effect of light and dark on the screen.

Most owners describe being able to resolve the problem until a later session by sleeping and then re-waking the system, while others note that the problem can be triggered by attaching or removing the power connector.

Apple technicians appear to be unaware of a widespread issue and are repairing systems on a case-by-case basis.

Microsoft, Yahoo said close to merger deal

After three months at an impasse, Microsoft and Yahoo today are rumored to be moving forward on discussions that would fold Yahoo into Microsoft.

The Windows creator is purportedly conceding to Yahoo in place of launching a hostile takeover attempt and will raise its offer by "several dollars" per share to placate the search engine developer's board of directors, which has been determined to either remain independent or else increase the value of the deal.

Nothing is certain, and talks may fall apart if the two companies are unable to reach an agreement, the New York Times alleges.

Microsoft has argued since announcing its plans that the buyout is necessary to combat Google's supremacy in online search and web advertising, which currently leaves Microsoft and Yahoo well behind in marketshare.

Apple currently has multiple deals in place with Yahoo, including Flickr access through the Apple TV as well as search and weather features on the iPhone and iPod touch.

Apple issues iPod classic, iPod Reset Utility updates

Two iPod-related updates have concluded Apple's week.

iPod classic firmware version 1.1.2 is available through iTunes and includes unspecified "bug fixes" for the hard drive-based media player.

Meanwhile, Windows users have been given iPod Reset Utility 1.0.4 (4.9MB), an update to software that restores any generation of iPod shuffle to factory defaults when iTunes is unable to do so itself.

Paper: 3G iPhone smaller, lighter than existing model [u]

2008-05-03T04:48:00.003-07:00

Published: 12:20 PM EST

Reports aiming to predict what Apple's 3G iPhone will look and feel like continue to pour in this week, with the latest claim coming by way of the Taiwan Economic News, which says the next-generation device will be both lighter and more compact than the first generation model.

Citing its own sources in the supply chain, the paper claims the new model weighs only 110 to 120 grams versus its first generation cousin's 158 grams. Much of the weight reduction is said to have come from a material swap that will see handset adopt a plastic casing instead of aluminum-magnesium one.

"In addition to weight advantage, the latest version is also more energy efficient and externally smarter," the Economic News added. "LCD screen on the phone measures 2.8 inches diagonally, a downsize from first generation`s 3.5 inches."

The Far Eastern paper also echoed a recent report from the Chinese-language Commercial Times in saying Apple has placed orders for 25 million of the devices over an unspecified time frame. Materials for an initial build of 300,000 units are reportedly due in Foxconn's manufacturing facilities by the end of next month, with a secondary build of 3 million units to take place in June.

With each new description of the 3G iPhone seemingly contradicting the others, it's important to recall that Apple is reported to have crafted bogus prototypes of the first-generation iPhone to show not just to Cingular/AT&T executives ahead of its release, but also its Apple's own workers. So it's entirely possible that quite a few decoy devices are making the rounds this time.

For the sake of completeness, there have thus far been at least four other distinctive claims as to the design of the Apple's second-ever handset. The first arrived compliments of digg founder Kevin Rose, who was notoriously off the mark with his predictions on the first-gen handset. This time around he claims the iPhone will employ two digital cameras situated back-to-back, with the one on the front side of the unit paving the way for video chat capabilities.

Wall Street analysts Gene Munster and Shaw Wu later chimed in with their own claims, saying that both a new 2.5G version of the iPhone and the 3G model would each sport a somewhat "redesigned exterior" and fetch between $349 and $399. Finally, blog site Engadget echoed claims originally waged by the iPodObserver in saying that the device would shed its aluminum backing for a black plastic one, but somewhat dubiously added that Apple was forced to make the 3G model somewhat fatter than the first-gen model in order to incorporate GPS technology.

Despite readers' penchant for discounting claims made by analysts, it should be noted that the Wall Street folks have at times nailed design aspects of unannounced Apple products. Specifically, analyst Shaw Wu in 2006 confirmed independent of AppleInsider that Apple would transition its iPod nano away from plastic enclosures and towards metal ones. Meanwhile, Morgan Stanley analyst Rebecca Runkle (now with Arience Capital) trumped all others in providing the most accurate visual descriptions and pricing information on the first-generation iPhone in the weeks leading up to its formal unveiling.

Apple plans retail tweaks as Fenway teaser appears in Boston

2008-05-03T04:48:00.001-07:00

Published: 04:30 PM EST

Apple is tweaking the titles and attire of its retail staff, equipping store managers with "magic iPhones," and preparing for "opening day" at its latest flagship location in downtown Boston (the facade of which was recently shrouded in a replica Green Monster).

With sales at the international retail chain booming thanks to more than just Macs, ifoAppleStore reports on a number of changes recently instated to reflect the company's expanded growth into new markets.

Beginning this week, Mac Geniuses will be referred to as simply "Geniuses," Mac Specialist will similarly become "Specialists," and Business Consultants will be renamed "Business Partners."

In a move also aimed at better distinguishing the roles of each staffer, employee clothing will see the following changes: Specialists will now wear light blue t-shirts once worn by Concierges, who will now wear bright orange.

At the same time, Business Partners will reportedly take on a more professional appearance with dark blue, buttoned-down shirts with "Business" embroidered on the sleeve next to the Apple logo. Genius and Creative employees will continue to wear dark blue, while back-of-house staff will be clad in black.

Each of the new retail t-shirts are said to sport fresh slogans, such as "Not all heroes wear capes." for Geniuses and "Some artists use brushes. I prefer boxes." for back-of-house stockroom attendants.

Meanwhile, ifoAppleStore claims that store managers will soon be privy to an advanced and interlinked web of real-time retail data, thanks largely to a proprietary application Apple is developing for their iPhones.

"Apple tracks the revenue performance of its retail stores in real time at the Cupertino, Calif.-based headquarters, and can immediately spot purchase trends, new product success, returns and other activities," the publication said. "Now, that technology is reportedly being extended to managers at the stores themselves with special software installed on an iPhone, allow them to track sales, inventory and employee performance."

The same piece of software will also include complete contact information for the store employees, along with maps and contact information for other stores in the chain, ifo added.

While all this is going on, Apple is also planning for "opening day" at its Boston-based flagship retail shop at 815 Boylston Street. Scaffolding in front of the double-decker, 6,384-square-foot mega store was recently remove and the concealing plywood adorned green in a clear-cut replica of Fenway Park's Green Monster.

It reads: "Opening Day. Coming Soon."