June 3, 2013

June 2, 2013

Apple is currently testing versions of iOS 7 internally that include the AirDrop WiFi-direct file sharing tool from the Mac, according to people familiar with the software.

Like with the Flickr and Vimeo integration that we previously reported on, it is very simple for Apple to remove any single feature from the new operating system ahead of the mid-June unveiling. 

Additionally, Apple has scrapped AirDrop late in software development from iOS before. Last year, we reported that Apple was developing an AirDrop tool to take advantage of the new WiFi hardware inside of Apple’s latest iOS devices. Because Apple has postponed the feature before, we believe it is possible that the feature could be pushed back again…

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Update: Bloomberg adds more to WSJ’s report from earlier claiming that Apple’s new radio service will be tightly integrated with its iAd business. The report says Eddy Cue is currently making changes to the iAd business to support the new radio service scheduled to launch later this year alongside iOS 7:

Apple, based in Cupertino, California, has been negotiating with advertising companies including Omnicom Group Inc (OMC).’s OMD to secure brands that will run campaigns on the radio service, one person said..The company has taken steps to be more flexible with advertisers to get more business. Apple has required marketers to pay a fee for each 1,000 times an advertisement is placed in an app, plus an additional $2 for every time a customer clicks that ad. In some cases, Apple has eliminated one of those charges, one person familiar with the company said.

Apple also has cut prices so that media agencies can spend $1 million and use the purchased space for different advertising clients. And Apple started taking ad business from companies that sell alcohol, something Jobs resisted after creating iAd, said one person.

We’ve heard no shortage of rumors on the rumored iRadio streaming service from Apple that has taken on some new urgency after Google released a similar service at Google I/O last month (and plans to launch it on iOS soon). The latest comes from the NYTimes, which says Apple is rushing to close deals as days wind down to WWDC’s kickoff on June 10th.

After months of stalled negotiations over its planned Internet radio service, Apple is pushing to complete licensing deals with music companies so it can reveal the service as early as next week, according to people briefed on the talks.

It would appear that Apple wants to announce the service at WWDC, but the company needs to overcome issues with closing some of the deals. CNET reported earlier today that Apple had closed the deal with Warner, one of the bigger labels.

Apple has signed a deal with the Universal Music Group for its recorded music rights, but not for music publishing — the part of the business that deals with songwriting. Over the weekend, Apple also signed a deal with the Warner Music Group for both rights. It is still in talks with Sony Music Entertainment and Sony’s separate publishing arm, Sony/ATV, whose songwriters include Taylor Swift and Lady Gaga.

In a strange irony, the music service Apple offers is, again, said to be free and supported by ads (like Pandora/Spotify/Slacker/etc). This is in contrast to Google’s service, which is sold via a paid subscription.

I would have guessed the opposite, but this may be why Google was able to close the deals with the labels and Apple is still at the table.

WSJ adds that Apple will pay Warner 10% of ad revenue, about twice as much as Pandora, and that the service will be integrated with iAd.

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We discussed Tim Cook’s speaking at Duke’s Fuqua Business school on the occasion of the 25th anniversary of his MBA back in April. This weekend, Duke published  insightful snippets of the remarks he made and they are incredibly insightful. Perhaps most interesting was Cook’s views on collaboration: expand full story

In a report this morning, one of the better Apple analysts, Ming-Chi Kuo of KGI securities listed his forecast for MacBook Pro and Air updates expected at WWDC. Apple’s annual developer-centric conference begins on June 10th with a keynote. The biggest change is Apple will move to Intel’s Haswell processors. These chips dramatically reduce power consumption, which in turn could allow Apple to need fewer batteries in the Retina MacBook Pros:

We expect the new MacBook, featuring an upgrade to Intel’s (US) Haswell processor, will be in the spotlight for Apple at the upcoming WWDC from June 10. Along with the new processor, we expect the following modifications to each product line:

Retina MacBook Pro to be slimmer slightly, along with a camera upgrade. We expect the 13” Retina MacBook Pro will have a slightly slimmer form factor for increasing its portability. Also, we think the camera spec will be upgraded from HD to full HD. This will improve Facetime and video conference quality in the high resolution Retina display.

The 1080P camera would match the capabilities of the rear-cameras in recent iOS hardware, but this would represent the first time in which Apple shipped a 1080p-capable front-facing sensor.

Screen Shot 2013-06-02 at 8.53.09 AM

If Apple does choose to keep the same batteries and size of the Retina MacBook Pro, the new Haswell chips could push battery life up over 10 hours – an outcome I’d personally prefer. Additionally, how can you make the 13″ Retina MacBook Pro any thinner?

It is so thin that the ports+ fan outlets barely fit now. It would also be an uncharacteristically short sub-1-year duration for the current design.

As for the MacBook Air, at least one improvement is expected by Kuo: expand full story

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