Tuesday, December 30, 2008

Next-gen iMac to include new cooling module?

Published: 09:00 AM EST



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A new family of iMacs due early next year may include a more sophisticated cooling system, hints the latest reports from sources close to the company's Taiwanese manufacturing facilities.

Backtracking on its report from last week, the Chinese-language Economic Daily News now claims that it's Foxconn, not Quanta, who has secured a contract with the Mac maker to manufacturer its new all-in-one desktops.

Contract-free iPhones on sale in France for $1100

Published: 01:00 PM EST

Following a recent ruling by local regulators, French consumers can now purchase an iPhone 3G without signing a service contract with Apple-sanctioned wireless carrier Orange, assuming they're willing to digest a considerable markup.

MacNN notes that French retailer FNAC is now selling a contract-free version of the black 8GB iPhone for �799 ($1,123), while black or white 16GB models are fetching �899 ($1,263).

That's more than five times the �149 in-contract cost for the 8GB model announced by Orange back in July, and considerably more than similar contract-free offerings in Belgium priced at �529 and �619.

The iPhones on sale at FNAC are believed to be the result of a ruling earlier this month by the French competition counsel, which ordered Apple to immediately cease its exclusive relationship with France Telecom's Orange and allow other local carriers to offer the iPhone to their subscribers.

The counsel's ruling came following a September complaint from France's third largest mobile operator, Bouygues Telecom, which alleged the deal between Apple and its larger rival violated local freedom of competition and pricing laws.

France Telecom has appealed the decision, which is said to be a temporary measure instated by the counsel while it continues to investigate the merits of Bouygues' claims.

Apple, Google, Microsoft sued over icon previews

Published: 03:00 PM EST



Apple, along with fellow tech heavyweights Google and Microsoft, are accused in a new lawsuit of patent infringement for their use of icons that include a graphical representation of a file's contents.

The 4-page complaint filed this month by Arizon-based Cygnus Systems, Inc charges all three companies with infringing on its March 2008 US patent No. 7,346,850, titled "System and Method for Iconic Software Environment Management."

"The [patent] generally relates to methods of and systems for accessing one or more computer files via a graphical icon, wherein the graphical icon includes an image of a selected portion or portions of the one or more computer files," the suit says.

In particular, Cygnus takes issue with Mac OS X 10.5 Leopard's use of icon previews in traditional Finder windows, as well as more detailed views presented by QuickLook icons that are accessible when viewing Finder windows in Cover Flow mode.

"Apple has further infringed one or more claims of [the patent] at least by making, using, selling, and offering for sale its iPhone and iPhone�s accompanying iconic file preview and access functionality, including but not limit to the iconic file preview and access functionality of iPhone�s main menu and Safari Internet browser applications," the complaint adds.

Similarly, Microsoft is charged for its use of iconic file previews in Vista and Internet Explorer, while Google is accused of treading on the patented concept via iconic file previews present in its relatively new Chrome web browser.

icon preview

Cygnus, which bills itself as a provider of "unique computing, networking and application needs of small to midsized businesses" in the state of Michigan, is seeking a damages in addition to an injunction prohibiting the three companies from further infringement.

Quicken Financial Life for Mac due this summer

Published: 05:00 PM EST



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Financial software maker Intuit disclosed this week plans to release a long anticipated update to its Quicken application for Mac users sometime during the summer of 2009.

The software, which was first previewed at last January's Macworld Expo, is being re-written from the ground up as a Universal application that better utilizes modern-day Mac OS X technologies like CoreData and Cover Flow.

It's also adopting a more streamlined interface akin to an early version of iTunes, with a sidebar positioned to the left and a workspace to the right that will display registers, statements, and other reports in Cover Flow mode.

As such, Intuit plans celebrate its rise from Apple's era of Carbon-based applications by completely rebranding Quicken for Mac as "Quicken Financial Life for Mac" when the software hits the market next summer.

Although the software was initially scheduled for release this past fall, the company revealed on Monday that it will miss that target by at least 9 months. Word of the new release date came as the software maker urged users to join an expanded Quicken Financial Life for Mac beta program.

"Due to overwhelming interest in the beta, at this time we cannot accommodate your request to participate," Intuit said in an email to one AppleInsider reader whose application was rejected from the beta program. "We expect to release Quicken Financial Life for Mac in summer 2009."�

Several other readers reported being accepted into the program, however, and were immediately provided a link to download a 123MB image file containing the second beta of Quicken Financial Life for Mac. (Readers interested in joining the program can apply through this link. Edit: Intuit has asked that we remove the link.)

Quicken

The distribution includes a read me file [PDF] highlighting some of the design changes from legacy versions of Quicken, namely a move towards organizing data through tags rather than categories and classes.

Intuit is expected to preview the latest beta of Quicken Financial Life for Mac at its newly-expanded booth at next week's Macworld Expo. Meanwhile, readers interested in additional details can check out AppleInsider's report from last Macworld.

Second case maker points to 'iPhone nano'

Published: 09:00 PM EST

With just days to go before the annual Macworld trade show, a second case maker has added references to an iPhone nano to its website.

Well-known case designer Vaja has joined XSKN with an update to its web catalog implying that it plans to deliver protective garments for an Apple-developed iPhone nano in the near future.

The single reference to the product links customers to a web form where they can "sign up for the upcoming release" of its "iPhone nano cases."

As MacRumors points out, it's unlikely that case makers are privy to advanced information on future Apple products, and hence Vaja may simply be attempting to jump in on the recent hype surrounding the matter.

That said, case makers with contacts at Apple's off-shore manufacturing facilities may be able to obtain specifications for the company's future handheld products through unconventional means.

XSKN is one example of a case maker that was recognized earlier this year (1, 2) when it began selling protective holders for both the iPhone 3G and fourth-generation iPod nano before the specifications for those products were made public by Apple.

Vaja

Piper sees dull Macworld, new form factor iPhone by spring

Published: 09:15 AM EST



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With Apple chief executive Steve Jobs skipping out on this year's Macworld Expo, investment bank Piper Jaffray isn't holding high hopes for new product announcements outside a pair of refreshed Macs, but said in a report Tuesday that a redesigned iPhone should surface in the months that follow.

"Predicting product announcements for this year's Macworld has been difficult with new iPods and Macs released in the fall and the relatively new iPhone 3G," analyst Gene Munster told his clients. "With [Apple marketing chief] Phil Schiller delivering the keynote, we believe it suggests there will not be any revolutionary products at this year's event."

Still, the analyst believes a couple of existing products could see a refresh at the annual conference, namely the iMac and Mac mini. Meanwhile, his hopes for a new iPhone -- at one time seen as having an outside chance of appearing at the show -- have been dashed with word that Jobs would not be delivering his traditional keynote presentation.

"While we believe it is unlikely that a new iPhone will be released at Macworld, we continue to expect a new model by the end of the March quarter," Munster wrote. "Specifically, we believe Apple could introduce a lower-end model that is slightly thicker due to the inclusion of a slider keyboard for students (texting) and business use (email) between $99 and $149."

Another alternative for a new iPhone could see Apple alter the value proposition of the $199 model by using a different material than plastic for the casing, or giving it a slightly thinner form factor, he added.

Munster, who maintains a Buy rating and $235 price target on shares of Apple, said his 45 million iPhone unit sales estimate for 2009 is largely predicated on his belief that the company will expand its iPhone lineup to include a lower-end model early in the year.

Apple's first D.C. store facing repeated opposition

Published: 11:20 AM EST

The wait for Apple's first retail store in the nation's capital will reportedly drag on, as local preservationists have been unable to see eye-to-eye with the Mac maker on a design for the new shop.

The Cupertino-based company acquired a building in the historic Georgetown district more than a year ago with the intention of demolishing the structure and replacing it with a flashy high-profile Apple store.

Although it's since been cleared to raze the building at 1229 Wisconsin Ave., Apple has been unable to pass its design proposals for the new store through a review process governed by a pair of local preservationist bodies, according to the Georgetown Current [PDF].

The paper reported last week that the Georgetown advisory neighborhood commission rejected the third consecutive proposal from the electronics company at a December 2nd meeting, and that the Old Georgetown Board did the same at its own meeting two days later.

Concern that Apple's design may be too radical for the surrounding neighborhood appears to be the primary issue. Its most recent proposal calls for a glass first story "with a solid-stone upper facade punctuated by a large window shaped like Apple�s logo."

"The board felt that the design turned the building into a billboard," said Tom Luebke, a spokesman for the Old Georgetown Board tasked with approving new building designs for the historic district.

Apple's first design proposal in September of 2007 included an a glass lower story and a second floor that featured punched windows. When that design was rejected, it returned this summer with an all-glass proposal, which was similarly shot down.

"That first time, like every time after, it was a question of scale,� said Luebke, who noted that the board was not keen on the sprawling glass facades. "The board wanted something less autonomous, something that supports the historic district."

Apple must now return to the drawing board and come up with yet another proposal should it wish to proceed with plans for the Wisconsin Ave. shop.

In its struggle to pass a proposal for the Georgetown store, it was recently reported that Apple has failed to pay the $70,162.17 in taxes it owes since purchasing the property. The more than year-long delay has led the city's government to issue two penalties that have now boosted the company's taxes owed to $84,545.42.

Outside chance of new consumer device at Macworld - analyst

Published: 12:00 PM EST



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While acknowledging that expectations for next week's Macworld Expo are running relatively low, one Wall Street analyst believes there's an outside chance Apple will surprise show-goers with a new consumer oriented device.

Speaking to clients in a research note, Kaufman Bros. analyst Shaw Wu said his latest round of supply chain checks lead him to believe Apple's announcements at the conference will center around new Macs and "potentially a sneak preview of Mac OS X 10.6 Leopard."

However, the analyst also cited "sources" as he echoed a pair of speculative reports (1, 2) from Apple bloggers this week, indicating the remote possibility that the Cupertino-based company may introduce a new "consumer device" that may be "an updated version of AppleTV and/or Time Capsule with enhanced capabilities including the ability to access personal content from anywhere on the Internet."

"Frankly, we would be a little surprised if there is a major announcement as we believe it would make better sense for Steve Jobs to do so himself at an Apple event," he said. "However, there is always the likelihood that Apple may surprise and send a message that Apple is a much broader and deeper company than one person, even if he/she is a living legend."

Wu continues to believe that Apple is also hard at work on new, lower-cost iPhones and other larger form factor touchscreen devices, but doesn't expect those products to see daylight until sometime in the future.

"Our sense is that investor expectations [for Macworld] are fairly modest since it was announced that CEO Steve Jobs wouldn't be the keynote speaker," he added. "Nonetheless, we view new Macs as a positive catalyst as Apple's desktop business (iMac, Mac mini, Mac Pro) needs a refresh to re-ignite sales."

Meanwhile, the Kaufman Bros. analyst said his sources indicate that the recently refreshed MacBooks and MacBook Pros continue to experience robust demand. That said, he still called upon Apple to loosen its grip on premium pricing and introduce lower price points on some of its products given the macroeconomic environment.

"We continue to believe Apple is one of the better names to own in this tough macroeconomic environment, given its strong fundamentals," he said.

Wu maintains a Buy rating and $120 price target on shares of Apple.

Gadget blog juices fears over Steve Jobs' health

Published: 03:00 PM EST



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Gadget blog Gizmodo is causing a stir this afternoon with a new report alleging that Apple has mislead the public about the reasons behind its exit from Macworld Expo, claiming Steve Jobs' deteriorating health is to blame for the matter.

The online publication cites a source which has reportedly been "100% correct" when providing information and photographs of unreleased Apple products in the past. This source is now said to have passed on information charging Apple with misrepresenting the reasons behind its pullout from future Macworlds and the cancelation of Jobs' keynote address at next week's show.

"The real cause is his rapidly declining health," the report claims. "In fact, it may be even worse than we ever imagined." An unedited citation from the publication's source reads as follows:

Steves health is rapidly declining. Apple is choosing to remove the hype factor strategically vs letting the hype destroy apple when the inevitable news comes later this spring.

This strategic loss will be less of a bang with investors. This is why MacWorld is a no-go anymore. No more Steve means no more hype. Saying they are no longer needing [MacWorld] is the cover designed by the worldwide "loyalty" department.

Apple declined to comment on the report, which Gizmodo is billing as a rumor that it hopes "is absolutely wrong." Nevertheless, the gadget publication places much of the blame for the reoccurring rumors on the company itself, citing its decision to hold back critical information about the welfare of its chief executive in the past.

A cancer surviver, Jobs underwent successful surgery in 2004 to remove a malignant tumor from his pancreas. Apple, however, remained secretive about the matter until the operation was complete and Jobs sent this email to employees from his hospital bed.

In the years that followed, little concern was expressed over the health of the company luminary given Apple's claims that he had recovered fully from his bout with the deadly disease. Fears were only rekindled with some emphasis early this year when Jobs took the stage at the company's annual developers conference looking uncomfortably frail.

Since then, its been revealed that he underwent a second surgery earlier this year to address a nutrition problem that was contributing to his weight loss. Investor jitters over the matter continued to weigh on Apple shares, however, prompting Jobs to contact the New York Times on his own accord and assure a reporter that the most recent issues were not life threatening and that he did not have a recurrence of cancer.

The subject of who should be privy to information on Jobs' health remains a much debated and dicey subject. While some industry watchers believe the company co-founder's health is a private matter and no one else's business but his own, some Apple investors don't necessarily agree. They say Jobs' sheer value, estimated to be worth more to Apple than any other chief executive in the world, should afford them the right to be informed about material changes to his health.

More corroboration of tablet device brewing at Apple

Published: 09:00 PM EST



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Apple is indeed working on tablet-like device that may finally surface sometime next year according to a trio of sources who've been in touch with high-tech blog TechCrunch.

The news should come as little surprise to avid followers of the Cupertino-based company. Back in September of 2007, AppleInsider exclusively reported on plans for the larger multi-touch device in its report titled "Up next for Apple: the return of the Newton."

Although it's been more than a year since that initial report with no sign of the product from Apple, AppleInsider has maintained confidence that the company is still actively developing the device and intends to bring it to market only when it meets the stringent demands of chief executive Steve Jobs.

In its own report Tuesday, TechCrunch cited three independent sources close to Apple who say to "expect a large screen iPod touch device to be released in the Fall of �09, with a 7 or 9 inch screen."

"Prototypes have been seen and handled by one of our sources, and Apple is talking to OEMs in Asia now about mass production," the publication said. It added that there were some early concerns amongst Apple managers over the potential market for such a device but that those fears have been quelled by the blistering success of the App Store:

"The difference now is the iTunes app store, which has thousands of games and other applications that are perfect for a touch screen device with an accelerometer."

AppleInsider will provide a brief update on the status of Newton tablet following next week's Macworld Expo.

Sunday, December 28, 2008

Investment bank Kaufman Bros. on Tuesday downplayed renewed concerns over the health of Apple chief executive Steve Jobs, arguing that although the co-founder has been critical to the company's resurgence, his spirit and drive have since been instilled in thousands of other Apple employees.

After recovering to $100 per share earlier this month, Apple's stock again came under downward pressure last week when the company announced that next month's Macworld Expo would be its last and that Jobs would not delivering his traditional keynote presentation.

Apple attributed the decision to end its near 25-year commitment to the annual Mac conference to a move away from trade shows in general, saying the increasing popularity of its retail stores and website enable the company to "directly reach more than a hundred million customers around the world in innovative new ways."

Some industry watchers poked fun at the decision, mocking the company in a parody press release titled "Apple Announces Last Year of Christmas," joking that while the Cupertino-based firm has been honored to work with the North Pole for the last several years, it has decided "that this is the last year for Christmas."

"Apple has been steadily scaling back on holidays in recent years, including Valentine's Day, Columbus Day, President's Day and Grandparents Day in Japan," the mock release said.

Others didn't take the announcement so lightly, like those within the Apple community who feel an exit from Macworld serves as a slap in the face to an industry that has supported the Mac maker for more than two decades, arguing that the decision could ultimately prove detrimental to the Apple ecosystem going forward.

The biggest concerns came from Apple investors, however, some of which couldn't help but wonder if the move had anything to do with the health of Jobs, which has been a topic of public scrutiny ever since the cancer surviver appeared overly gaunt at this year's Apple Worldwide Developers Conference. They also question why the company waited until just three weeks before the conference to make its plans known.

In a note to clients, Kaufman Bros. analyst Shaw Wu offered his own thoughts and perspective on the situation, arguing against the notion that Apple is one man show but rather a vast family of enthusiastic professionals who share Jobs' leadership skills and penchant for innovation.

"While CEO Steve Jobs deserves a lot of credit for the revival and success of Apple and, as one of the founding fathers of technology, helping revolutionize the world with the Apple I, Apple II, Lisa, Macintosh, NeXT, Pixar, Mac OS X, the Apple Store, iTunes, iPod, and iPhone, we believe Apple today has a deep bench and its culture of innovation and execution or 'spirit' has more or less been institutionalized," he wrote.

Wu said that, in his view, Apple has an uncanny ability to attract and hire "fanatics" who are "entrepreneurial, work hard, and are looking to change the world." He believes that unlike years past, the Apple of today is not only innovative but a company with world-class operations and execution, driven by many people other than Jobs, from its senior management team down to its 32,000 individual employees.

"We believe Apple has always been an innovative company and we would like to note that most overlook that the company actually had some hit products while Mr. Jobs was not there that defined the computer industry, including the Macintosh Quadra, QuickTime, PowerMac and PowerBook, and Apple IIgs," the analyst added.

Wu maintained his Buy rating and $120 price target on shares of Apple, saying the most recent pull back in shares makes the risk-to-reward more favorable for long term investors.

iPhone app sales growing at twice the rate of iTunes music

Published: 06:15 PM EST

The notion that Apple's iTunes revenues hinge on music may soon be called into question, as Apple's recent metrics reveal that the App Store may be quickly outpacing its musical counterpart with growth twice as quick.

Apple's boast that users have downloaded over 100 million apps for the iPhone and iPod touch in two months is more than just a good start among software -- it's a good start for a new iTunes feature in general, according to a new report.

If the iPhone maker sustains the download rate of 70 million apps per month achieved in August and the estimated $70 million in revenue that would accompany it from paid apps, the company would reach the one billion app mark and a corresponding $1 billion in sales sometime during 2009. By contrast, the iTunes Store's music section took over two years to reach one billion songs, cresting at the symbolic figure by early 2006.

This also assumes that Apple doesn't increase its download rate over time, which is seen as likely: the company's emphasis on the App Store as a vehicle for iPhone and iPod sales, rather than a profit engine of its own, may encourage more customers and developers to use the store. Sales of iPhone 3G also have yet to see the holiday shopping surge or deployments to other major countries, such as Russia.

For comparison, iTunes' music sales rate has also increased rapidly over time. After the first billion songs, it took just one year to double that figure.

Competitors may also face a struggle uphill to attract their own audiences, the report mentions. As neither Google's Android Market nor Microsoft's upcoming Skymarket for Windows Mobile will have the luxury of using self-made device sales to offset any costs, either of the phone operating system designers will have to dip into other resources. Those that do operate both the hardware and stores, such as Nokia and its Music Store, may also have to accept Apple's business model even if they would like their services to be independently profitable.

And while Nokia and a handful of other rivals either already run stores or expect to open them soon, Apple may create an advantage simply through being early. Google's store for Android apps isn't anticipated until the November launch of the first Android phone with T-Mobile, while Microsoft's Skymarket isn't due until the launch of Windows Mobile 7 sometime in 2009.

iPhone 2.1 jailbroken with end run around iTunes 8 defenses

Published: 04:40 PM EST

The well-known iPhone Dev Team has already managed to jailbreak the 2.1 firmware for iPhones and iPod touch, all the while without requiring tricks to circumvent new anti-hacking provisions in iTunes 8.

New versions of PwnageTool and its accompanying QuickPwn app have arrived just days after the launch of Apple's 2.1 upgrade.

The combination will allow unsigned third-party code to run on iPhone and iPhone 3G as well as the first-generation iPod touch; the second-generation iPod touch isn't yet known to work, in part because none of the Dev Team has an example to verify the status of the jailbreak.

The solution comes in spite of new, significant measures reportedly discovered in iTunes 8 to thwart more direct attempts at loading modified firmware on to untouched devices. Just before the new jailbreak, the Dev Team said it had discovered apparent security measures in Apple's software that pops up an error as long as the rogue firmware is loaded into iTunes, refusing to sync with iPhones or iPods if the device is still running official code.

Members of the modding group initially thought they might need to patch iTunes 8 to allow the altered firmware and had even developed an early version of the patch before it became clear that one wasn't necessary.

While no one has yet claimed to successfully unlock an iPhone 3G purely through software, the current hack suggests Apple has yet to find a definitive trick to winning the "cat and mouse" game between itself and those groups bent on loosening the phone's limitations, many of which now have a long-established history of overturning any new controls Apple might put in place.

"We�re waiting to see what Apple tries next," the iPhone Dev Team says. "But we think they might want to rethink their priorities. �They probably won�t though."