Published: 09:00 AM EST
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.
Tuesday, December 30, 2008
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.
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.
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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.
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.
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.
Piper sees dull Macworld, new form factor iPhone by spring
Published: 09:15 AM EST
"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.
"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.
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.
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.
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.
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."