Jordan Kahn

Apple’s Chief Executive Office Tim Cook is speaking at the Goldman Sachs Technology and Internet Conference where he was just asked about working conditions within the company’s supply chain. While Apple’s presentations at past Goldman Sachs conferences, where Cook was often involved as Chief Operating Officer, were typically limited to numbers and trends, Cook was asked today about supply chain conditions in China:

“The first thing I would want everyone to know… Apple takes working conditions very, very seriously….we care about every worker… i spent a lot of time in factories personally… we are understand working conditions at a very granular level. I realize that… the supply chain is complex… but my commitment is very, very simple. We believe that every worker has the right to a fair and safe work environment, free of discrimination, where they can earn competitive wages, and voice their concerns freely… We believe that education is the great equalizer”

Cook talked about how aggressively Apple has sought to fix the issues. In January, the company polled over half a million employees weekly and reported over 84 percent compliance. Following yesterday’s announcement that the Fair Labor Association has begun audits of the company’s supply chain starting with Foxconn City in Shenzhen, Cook noted Apple will begin an unprecedented move to report its findings monthly. As an example of how detail oriented the company’s review processes are, Cook noted if there were “no fire extinguisher in kitchen,” the supplier would not pass.

Cook also noted that Apple partnered with local schools to provide classes to more than 60,000 employees, many going on to earn associates degrees, with a campus population larger than Arizona State.

With Apple and Samsung caught up in ongoing patent disputes worldwide for various smartphone and tablet devices, the proposition of an Apple-branded HDTV would have Samsung once again defending its market share from Apple. This time it is in the living room—a market Samsung largely dominates. However, if you ask Samsung’s AV Product Manager Chris Moseley, Apple is not ready to compete with his company’s experience as a TV manufacturer, specifically when it comes to picture quality. Moseley talked to Pocket-lint in Prague at a Samsung press event:

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Microsoft’s attempts to mimic Apple’s retail success are obvious with the Redmond-based company’s habit of opening a shop right across the hall/street. Not just the location, but the interiors of Microsoft’s retail locations also often borrow from Apple. They feature long wooden harvest tables displaying devices, an Answer Desk instead of Genius Bar, and an overall clean industrial aesthetic. Now, Verizon plans to take inspirations from Apple to improve its retail store experience with the introduction of the “Evolution 2.0” concept store this morning in Toms River, N.J. (via PocketNow).

There’s no mention of a Genius Bar or Answer Desk, but the store will hold workshops and staff 21 full time employees in a 3,100 square foot sales space that is undeniably taking a cue from Apple’s retail store designs. Expect Verizon to roll out the new store design if the one concept store receives positive feedback. In case you are wondering what the store looked like before the renovations, head past the break for the before shot.

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Less than a month after Apple introduced its free “iBooks Author” e-book publishing platform, interactive iPad textbook startup Inkling introduced its own publishing platform called “Habitat.” Founder and CEO Matt MacInnis, who also happens to be a former senior manager of international education markets and Asia education marketing at Apple, made the announcement today in New York at the “Tools of Change for Publishing” conference.

Inkling dubbed Habitat the “First-Ever Digital Printing Press for Professionals,” and suggested the company hopes to offer a more comprehensive solution to professionals than Apple’s iBooks Author platform. In its press release, Inkling runs down some of habitat’s features: standards-based content including “guided tours, 3-D exhibits, interactive quizzes, and high definition video,” and single-click cross-platform publishing, cloud storage for collaboration, object-oriented content, and “Infinite revision management” to backup every change to your project.  The platform also has an “automated error reporting” feature to scan published content for broken links, and other issues with content…

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In a statement from the United States Department of Justice clearing Google’s acquisition of Motorola, the DOJ also closed its investigations into Apple’s acquisition of certain Novell patents, and the Apple, Microsoft, and RIM acquisition of Nortel patents.  The statement claimed concerns of unfair use of the patents were curbed with Apple and Microsoft making strong commitments to the DOJ regarding fair, reasonable and non-discriminatory use of standard essential patents and not to “seek injunctions in disputes.” However, Google apparently didn’t provide the same level of commitment:

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ThinkGeek gave us a glimpse at an upcoming iCADE controller mimicking the classic Nintendo controller layout and decorated with a retro 8-bit themed graphics. The “8-Bitty” is compatible with the iPhone, iPad, and iPod touch, connects over Bluetooth (two AAA batteries required), and is compatible with all iCADE supported games, including the Atari Classics collection. Unfortunately, you are going to have to wait until later this year when ThinkGeek starts selling them for $25. You can sign up now to be notified by email when it does become available.

You will also want to keep your eyes out for three new iCade models we recently told you about during CES 2012. One of which is the iCade Mobile ($79.99) that is iPhone and iPod touch compatible, and it allows you to dock your device for a PSP-like handheld experience. That model and updated iPad arcade cabinets are expected to launch in the coming months.

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Following the release of Apple’s “2012 Supplier Responsibility Report,” Apple announced it would be the first technology company admitted to the Fair Labor Association. The FLA will “independently assess facilities in Apple’s supply chain,” and then publish its independent findings online. Apple announced through a press release today that the first audits have officially started with FLA President Auret van Heerden and his team beginning inspections at Foxconn City in Shenzhen. Apple CEO Tim Cook said the audits are “unprecedented in the electronics industry”:
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[youtube=http://www.youtube.com/watch?v=KYzVB0d3uFY]

Update: ITV has apparently denied The Telegraph’s claims that ITV CEO Adam Crozier wrote to Apple. In a statement to The Verge, ITV said, “The Telegraph’s piece is entirely speculative, and there has been no communication between ITV and Apple. ITV has no further comment on the matter.”

With recent reports from The Globe and Mail referring to Apple’s yet-to-be unveiled HDTV generally known as the “iTV,” and other reports from Jefferies & Co. analyst Peter Misek that suggested Apple could  go with the name for its product, many are quick to point out Apple might have licensing issues with one of Britain’s largest commercial broadcasters, ITV. The 50–year-old and up UK-based TV network has challenged Apple’s potential use of the moniker in the past. According to reports from The Telegraph, ITV has apparently written to Apple to warn the company not to use the name for its upcoming smart television product:

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We told you in November that Apple had prototypes of an unreleased 15-inch MacBook Air floating around its Cupertino, Calif.-based headquarters. While it is in many ways similar to the 11- and 13-inch MacBook Air designs currently on the market, the prospect of a 15-inch Air left the future of Apple’s MacBook Pro lineup in question.

We followed reports from iLounge in February 2011 that indicated Apple was working on a new MacBook Pro lineup for a 2012 launch described as a “milestone” for the product line. Now, AppleInsider is claiming the technology giant will launch a revamped Air-like MacBook Pros sometime this year…

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Apple just posted a new video on its iPad in Business page profiling the Theatre Consultants Collaborative, which is a theatre design, planning, and programming company that applies the iPad in just about every aspect of its daily operations. The company employs iPads for everything from budgets, documents, and architectural drawings that exercise AutoCAD WS to conference calls through the GoToMeeting app and Audio Tools for identifying sound frequencies of a performance space.

The next time you walk into a theater or concert hall, take a moment to think about the space around you: the way the lights come up and dim, the way sound carries or doesn’t. Theatre Consultants Collaborative, or TCC, uses iPad to design and build performing arts spaces around the world. The group helps clients establish engineering specifications, plan infrastructure, and arrange interiors to accommodate lighting and sound systems, sight lines, stage rigging, and specialty equipment.

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We brought you yesterday the FBI’s file on Steve Jobs, which revealed Jobs was a candidate for a “sensitive position” in the Bush I White House in 1991. However, many seem to have missed the fact that Jobs actually did take a position. A recent report from Associated Press claimed that not only was Jobs considered for a gig, but The Commerce Department confirmed yesterday that Jobs actually held a position as an export council member in the George H.W. Bush administration to advise on international trade:

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In a blog post from earlier today (via Ars Technica), the CEO of online music distribution service TuneCore announced some intriguing numbers on iTunes Match royalties it has collected for its clientage. While calling the payout “magic money,” CEO Jeff Price said his company collected $10,000 for a two-month period beginning at the launch of iTunes Match. While TuneCore’s artists have included the likes of multi-million album sellers like Nine Inch Nails in the past, Price said the royalties represent money most independent artists using the service would have otherwise never received:
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In December of last year, the first commercial airline pilots began to take iPads into cockpits as a replacement to the traditional flight bag. This followed the Federal Aviation Administration’s initial approval and testing of the device. Now, a recent report from Nextgov (via TabTimes) claimed the United States Air Force’s Air Mobility Command plans to buy up to 18,000 iPads. The proof comes from a notice posted on the Federal Business Opportunities website that claimed the AMC planned to buy “a minimum of 63 and a maximum of 18,000” iPad 2s.

While the notice did mention iPad 2 or equivalent devices, Nextgov said the Air Force Special Operations Command announced in January that it planned to purchase 2,861 iPads 2s as flight bag replacements. The devices will be used by the crews on C-5 Galaxy and C-17 Globemaster aircrafts. Although AMC plans to issue a proposal to buy the tablets at the lowest, fixed cost possible, Lt. Col. Glen Roberts noted the AMC “is looking for a tablet device, not necessarily an iPad.”

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Update: Tapbots followed up with a separate iPad version of Tweetbot that is a different purchase (also $2.99), but it implements many of the new features and UI elements introduced in the v2.0 update for the iPhone app earlier today. It has a new two-pane iPad UI and other features specific to the larger display. For anyone holding off on Tweetbot to avoid having to use another client on iPad, the iPad version is probably worth the extra $3 with this mornings update. BI and Rene at iMore has the review:

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=3oEjHrvzUEg#!]

Developer Tapbots just dropped an updated version of its popular third-party Twitter iPhone client. Tweetbot version 2.0 [iTunes $2.99] is a significant update with dozens of new features and changes, and its first impressions seem to be positive.

Perhaps the biggest enhancement in the new Tweetbot is the updated timeline view that refines the UI making links (now colored), profile images (thumbnails now appear in timeline), and usernames just a single tap away. Another nice addition is the tappable “Retweeted by” bar now appearing in the timeline. Other improvements made to the app include adjusted cell colors for better contrast, a redesigned direct message UI, and a new “New Tweets” bar that can be hidden with a tap or through Settings…

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According to new data compiled by Morgan Keegan (via AllThingsD), non-Apple revenues for the mobile computing industry made up of smartphones and tablets has remained stagnant for the last five years. In other words, revenues for the industry in Q4 2011 would have been roughly the same as in Q4 2007 without Apple.

To be specific: Revenues in Q4 2007 were approximately $37.93 billion for the industry (iPhone was introduced June 2007). Revenues almost doubled to $71.4 billion by Q4 2011. Take Apple out of the equation and those revenues in Q4 2011 drop to almost 2007 levels—approximately $37.97 billion. To put that in perspective: Apple reported $33.5 billion in mobile device revenues for Q4 2011, which is 47 percent of the $71.4 billion reported by the entire industry.

Tavis McCourt of Morgan Keegan noted the numbers mean Apple currently pulls in about 80 percent of operating profits while shipping 11 percent of the industry’s tablets and smartphones. The report also provided a chart (below) of earnings among the industry before taxes and interest:

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Following a brief injunction in the Motorola patent case forcing Apple to remove products from its German online store, a judge shortly after suspended the injunction and Apple claimed it would appeal the court’s original decision “because Motorola repeatedly refuses to license this patent to Apple on reasonable terms.” So, what were the terms of Motorola’s license agreement that Apple considered unreasonable?

Foss Patents reported earlier that court documents revealed Motorola was requesting an approximate 2.25-percent royalty from Apple, and today The Wall Street Journal confirmed the number, which would represent over $1 billion in iPhone sales during 2011. The proof comes from a letter dated Oct.17 and filed with a California court, although it does not list specific devices that would be affected. WSJ reported lawyers see the high royalty request as a way to “force a settlement or disrupt business,” and Foss Patents said Motorola likely wants Apple to deny the request so it can seek injunctions. In comparison, Microsoft is now collecting an approximate $5 royalty on over 70 percent of all Android smartphones sold in the United States, accounting for 2 percent of a $250 device.  Likewise, Oracle is after $1B from Google over Java patents.

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Analytics firm IDC just released a report covering the top five smartphone vendors by shipments and market share for Q4 2011. Apple not surprisingly takes the top position. According to IDC’s Worldwide Mobile Phone Tracker, smartphone vendors shipped 157.8 million units in Q4 2011, and 37 million were from Apple—accounting for 23.5-percent market share in the quarter.

As for competitors, the report showed Samsung was not far behind Apple with 36 million units shipped and 22.8-percent of the market worldwide. However, while taking the top position in the market thanks to the iPhone 4S launch, Apple also set a new shipment volume record for the entire industry during the quarter. The report citied the initial delay bringing the launch closer to the holiday season and the addition of new carriers as reasons for the device’s strong demand. Despite that, Samsung was still able to come out on top for FY 2011, edging Apple out by under a million units…

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Apple’s rumored HDTV might be called the iTV, according to a new report from Bloomberg citing Jefferies & Co. analyst Peter Misek. In a note to clients this morning, Misek also claimed Apple might buy licenses for programming through possible partnerships with Verizon and AT&T and could “leverage content into a YouTube-like model” by taking advantage of user created video from iPhone and iPad users. He also noted “Lower margins and higher risks” will most likely keep Apple away from creating original programming. Misek did not comment on a possible timeframe for the product’s launch.

Misek’s scenario of Apple partnering with carriers for content follows a report from Reuters today that confirmed Verizon and Coinstar’s Redbox division have partnered with plans to create a video streaming service to rival Netflix and Hulu Plus. Verizon and Redbox plan to offer its first product resulting from the partnership in second half of the year. As for the possibility of Apple calling its HDTV product the “iTV.” Apple will of course have to work out rights to the name from the major United Kingdom TV network of the same name.

Just last week, Piper Jaffray analyst Gene Munster weighed in claiming Apple was talking with a “major TV component supplier” about “various capabilities of their television display components.” He also offered three possible scenarios for how Apple will approach content on its HDTV product suggesting a simple integration of third-party live TV services, to a live TV/web content combination, to an iTunes monthly subscription.

In related news, you might have come across a BestBuy survey recently that aims to gauge interest in an Apple HDTV concept. If you are interested in seeing what BestBuy dreamed up for the survey, a copy sent to us by a reader is available below (Thanks Alan!):

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After The New York Times published a lengthy two-part piece covering the controversial working conditions of Apple’s supply chain within Foxconn factories in China, other publications are doing their own investigative work to find out more informtion. The NYT’s second installment brought us the backstory of Foxconn worker Lai Xiaodong leading up to his death at a factory explosion in Chengdu. Today, CNN published a video of journalist Stan Grant who recently sat down for an interview with a current Foxconn employee and iPad display assembler:

“I can’t bear it anymore. Everyday was like, I get off from work and I go to bed. I get up in the morning, and I go to work. It became my daily routine and I almost felt like I was some kind of animal.”

The video starts off with Grant showing “Miss Chen,” who requested her name be changed for the interview, and the finished iPad she helps assemble on a daily basis but has never used. Miss Chen told CNN her Foxconn bosses informed her not to talk with media or “criminal liability shall be investigated according to law.” Chen, a poor Chongqing university student, said she took the one-month job with no experience on promises of “great benefits and little overtime.” Chen described her experience upon arriving at Foxconn:

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Last week we told you about a new online lottery system for reservations that Apple setup for iPhone 4S sales through its Hong Kong stores to combat scalpers after it was forced to suspend sales of the device in various locations throughout Mainland China. Unfortunately, until this week, Apple’s online store for China has been out of stock since the overwhelming launch.

After implementing the new reservation policies on Tuesday, and in Beijing on Wednesday, Apple has now resumed online sales of the device with shipments arriving to customers no later than March 2, reported ChinaDaily. Apple’s online store for Mainland China now lists the iPhone 4S with an expected delivery time of “February.” Customers are limited to two devices with all three models currently available in both black and white. An Apple employee confirmed the March 2 date to ChinaDaily:

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[youtube:http://www.youtube.com/watch?feature=player_embedded&v=3H8v5XEkVAk]

Update: Apple had these videos taken offline.  We will make an effort to see if they exist somewhere else. Help us out in the comments if you find them.

Former Apple marketing executive Bob Borchers, who was part of the original iPhone team and helped lead the Nike+iPod partnership and third-party iPod integration with car manufacturers, recently gave a talk at a school in California to discuss his experiences at Apple (part 2 below). In case you are unfamiliar, you might remember Borchers from several “guided tour” videos for iPhone and other Apple products a few years back. He has also been a source for many of the interesting stories coming from Adam Lashinsky’s new book “Inside Apple.”

At the starting of his talk to students, Borchers surveys the crowd to find out the ratio of Android users to iPhone users, leading him to joke: “Alright that’s good. I’ll keep my Apple stock.” As a former marketing executive, Borchers showed and talked about a few ads, but also discussed the AT&T partnership, as he noted, “We broke rules in terms of how we worked with folks like AT&T”:

“AT&T as a company… they buy the cellphones and then they sell them to you and I… we said, ‘no we don’t want to do that’. We want to be able to sell the iPhone. We want to be able to talk directly to the customer. That was a big, big change for the industry.” 

Other than telling some recent stories that have debuted in “Inside Apple,” Borchers also talked about Steve Jobs’ initial mission to create the iPhone, describing the late CEO as wanting to create “the first phone people would fall in love with.” He also discussed how important the multitouch display and having the full “Internet in your pocket” was to the original concept. Before wrapping up his speech, Borchers talked about how the iPhone was developed from his point of view on the product marketing/product management team and the importance of Apple packaging:

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