Apple

Newsweek‘s Dan Lyons reported today that Apple’s “thermonuclear war” on Android smartphone manufacturers is fading fast, while a new rumor surfaced among the suits’ lawyers claiming the company spent $100 million on its initial set of claims against HTC.

Imagine how much Apple spent on other Android makers, such as Motorola (who is near locking Apple products out of Germany in retaliation) or Samsung (the biggest Mobile Communications patent holder in the world), if it spent so much on just HTC.

“Who knows if it’s true, but if so, Apple didn’t get a lot for its money,” wrote Lyons on his RealDanLyons’ blog Jan. 23.

Apple’s legal claims are abruptly junked left and right, and its only minor victories to date are so inconsequential that Android device makers can dance around the momentary obstacles with just a few minor tweaks to products, explained the Newsweek reporter.

The technology giant’s case against HTC with the International Trade Commission began in February 2010, when the Cupertino, Calif.-based company wanted the ITC to block HTC from importing products into the United States. The case originally had 84 claims based on 10 patents, but it was dwindled down to only four claims by the time a judge became involved, according to Lyons.

The rulings —for the most part— were a wash for Apple. One patent was invalid as Apple did not have a rightful claim to it, and HTC did not infringe upon two of the other patents due to Apple apparently not implementing them into its products. In other words, Apple did not have a right to seek an injunction, because ITC injunctions can only occur if it is provable that both parties are “practicing” the patent in question, which Apple could not demonstrate against HTC…

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Apple will report its fiscal first quarter results tomorrow for the October to December 2011 period during which the Cupertino, Calif.-based company saw the death of its cofounder and the record-breaking sales of its latest iPhone.

Apple passed the $400 billion market cap briefly last week, and it is the world’s second most valuable company after Exxon Mobil Corp. Its 2007-debut of the iPhone effectively piloted the touchscreen smartphone market, meanwhile the iPad carved a new consumer electronics category for the industry, as well.

Analysts expect earnings of $10.04 per share and revenue of $38.92 billion, according to FactSet, compared to Q1 FY11 where Apple earned $6.43 per share on $26.74 billion in revenue. Apple said it reckons earnings of $9.30 per share and revenue of $37 billion for Q1 FY12, but the technology giant usually underestimates its forecasts, and analysts generally ignore such predictions…

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Forget Microsoft Surface, this is what the perfect Apple worktable would look like. You would simply place an iOS device upon the desk to sync with iTunes and it would wirelessly sync data with iCloud. Its multi-touch surface would allow for a range of possibilities like operating your computer the Magic Trackpad style. Imagine being able to schedule appointments or make phone calls using its entire touch-sensitive surface, also doubling as a huge secondary display.

The eye-catching Apple-friendly desk of the future —affectionately called iDesk— was conceived by designer Adam Benton and posted at MacLife. Too bad Apple will never make this, but the artist rendition really has me hooked.  Go past the break for another image.

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Apple created a new section on its website dedicated to the enhanced iTunes U service that was updated during last week’s education announcement. The new web-based resources available at www.apple.com/support/itunes-u contain a wealth of information and how-to topics for educators to implement the new iTunes U digital features into their workflow. Specifically, training course are available for iTunes U Public Site Manager and iTunes U Course Manager, as well as various guides on publishing on iTunes U. Educators and students can also learn about creating different types of educational content, such as audio recordings, video clips, and interactive presentations.

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The iPhone 4S camera system has a fifth lens and larger aperture to let more light in.

It is widely assumed that Apple’s next iPhone is going to be thinner and lighter than its predecessor —the 9.3mm thick iPhone 4S. However, camera modules for smartphones are not shrinking as fast as other tiny components are, and it is becoming a growing limitation when designing ultra-thin gadgets. If Apple is to engineer a thinner iPhone, the company is likely going to redesign the camera system all over again. Conveniently, Sony has a brand-new back-illuminated CMOS image sensor in the works that could be a natural fit for a next-generation iPhone.

Unveiled Monday, it separates the CMOS sensors from imaging circuitry:

This image sensor layers the pixel section containing formations of back-illuminated structure pixels onto chips containing the circuit section for signal processing, which is in place of supporting substrates for conventional back-illuminated CMOS image sensors. This structure achieves further enhancement in image quality, superior functionalities and a more compact size that will lead to enhanced camera evolution. 

Of course, there is no way of telling whether Apple will put the new CMOS sensor inside the next iPhone as the company famously refuses to comment on speculation. Nevertheless, Sony’s chip also benefits from the new white-light image sensors (RGBW Coding) to produce clearer images with reduced picture distortion in dark scenes and sharper videos with a wider range of light.

It also sports the HDR Movie feature that lets the camera combine two different exposures simultaneously – during video capture, one for the foreground and the other for the background. It makes a big difference in bright light situations, as seen in the below clip.

So, what’s in it for Apple?

[youtube=http://www.youtube.com/watch?v=fM2xYCcbV5U]

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According to Global Equities Research (via AllThingsD), the new inexpensive digital textbooks Apple launched last Thursday at the Guggenheim Museum in New York City was downloaded over 350,000 times in just three days. iBooks Author, a new free of charge Mac tool to author iBooks Textbooks, saw 90,000 downloads in the same period. This data is not official and is derived from the investment firm’s proprietary tracking system that monitors Apple’s iBook sales.

Global Equities Research’s Trip Chowdhry said the numbers could be deciphered as “a recipe for Apple’s success in the textbook industry.” Apple’s new digital textbooks are priced at $14.99 or less and are available from several launch partners, including Pearson, McGraw Hill, Houghton Mifflin Harcourt and DK Publishing.

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The NY Times just published an absolutely fascinating piece on Apple and why it builds almost all of its stuff in China. Go read it.  Clearly some of our politicians could learn a lot from it.

The short of it is that companies like Apple simply cannot manufacture products in the United States.  The cost (though it is cheaper in China) is not the reason, however.  Years ago, the Chinese government subsidized building cities of factories that can hire 3,000 workers to live in a dorm per day —or 8,700 Industrial Engineers in two weeks (it would take 9 months to do this in the U.S.).  Today’s gadgets require thousands of little parts that are all made in the same areas.  This whole global supply chain cannot be moved to the U.S.

The most interesting tale might have been the last minute decision to make the iPhone’s display glass:

In 2007, a little over a month before the iPhone was scheduled to appear in stores, Mr. Jobs beckoned a handful of lieutenants into an office. For weeks, he had been carrying a prototype of the device in his pocket.

Mr. Jobs angrily held up his iPhone, angling it so everyone could see the dozens of tiny scratches marring its plastic screen, according to someone who attended the meeting. He then pulled his keys from his jeans.

People will carry this phone in their pocket, he said. People also carry their keys in their pocket. “I won’t sell a product that gets scratched,” he said tensely. The only solution was using unscratchable glass instead. “I want a glass screen, and I want it perfect in six weeks.”

After one executive left that meeting, he booked a flight to Shenzhen, China. If Mr. Jobs wanted perfect, there was nowhere else to go.

 New screens began arriving at the plant near midnight.

A foreman immediately roused 8,000 workers inside the company’s dormitories, according to the executive. Each employee was given a biscuit and a cup of tea, guided to a workstation and within half an hour started a 12-hour shift fitting glass screens into beveled frames. Within 96 hours, the plant was producing over 10,000 iPhones a day.

For over two years, the company had been working on a project — code-named Purple 2 — that presented the same questions at every turn: how do you completely reimagine the cellphone? And how do you design it at the highest quality — with an unscratchable screen, for instance — while also ensuring that millions can be manufactured quickly and inexpensively enough to earn a significant profit?

Other notable tidbits:
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[youtube=http://www.youtube.com/watch?v=8-fU-knxT0U&t=1h1m55s&start=3720]

Apple received a mention in a big way during CNN’s Southern Republican Presidential Debate held yesterday at the North Charleston Coliseum in South Carolina. The debate featured Republican Presidential candidates Mitt Romney, Newt Gingrich, Ron Paul, and Rick Santorum. At one point (mark 1:01:55), CNN host John King asked the candidates in the light of the ongoing Foxconn controversy to lay out their plans to bring back manufacturing jobs to the United States.

More precisely, King zeroed in on the fact that Apple is “a breathtakingly important American company” that employs most of its workforce in retail stores, but hires half a million low-paid workers through its Far East suppliers and contract manufacturers that actually assemble its products (just like any other technology company does, mind you). Santorum has “a plan in place” to put this strategy to an end (quote right below the fold), as do other candidates. They also talked SOPA and discussed other burning issues. Just watch the clip…

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[youtube=http://www.youtube.com/watch?v=vOSgfvTC35A]

Samsung is continuing its anti-Apple rant with a new television commercial titled “Samsunged.” Once more, the South Korean conglomerate laughs off those who would wait in line for a new iPhone. The commercial opens with the familiar scene as line waiters get a visit from their Galaxy SII-toting friend, and they promptly feel envious over his phone’s turn-by-turn navigation capabilities.

When asked by a girl waiting in the line how much he had paid for the navigation app, the Android person responded: “I didn’t, Galaxy S II just has it – it just comes with it.”  To that, one of the Apple fans remarked angrily: “Ooooh, we just got Samsunged!”

It is also worth noting that the advertisement subtly pokes fun at the iPhone 4S’s same design as the iPhone 4, as well as its widely reported battery issues. The commercial starts out with the line’s awaiting customers eagerly watching a streaming video of the device they are hoping to buy being unveiled online, and upon seeing the device, one customer sighed: “Awe, that looks like last year’s phone.” The scene immediately transitions into the Galaxy S II user bringing his friends a white smartphone charger, presumably because their device’s battery is almost dead.

Apple fans are obviously going to be seeing more of these advertisements as the Super Bowl approaches. It is certainly interesting, though, that these commercials paint Samsung customers as hipsters.

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Fans in China eager to get their hands on Apple’s iPhone through wireless operators other than China Unicom, the country’s exclusive iPhone partner, are in for a surprise as the device is really close to launching on the China Telecom network. According to the Wall Street Journal, it received a much-needed CDMA-2000 network access license from Telecommunication Equipment Certification Center, the country’s certification body. This means China Telecom could now be just weeks away from officially selling the iPhone:

An iPhone compatible with the mobile network of China’ third-largest mobile carrier, China Telecom, has received a network access license, a regulatory website shows, marking a key step toward Apple being able to sell the phone to a broader audience in China.

Last week, Apple’s iPhone got an approval from China Radio Management agency for use on China Telecom’s network. That agency certified an iPhone version with a model number A1387a that supports “WCDMA,” indicating Apple could release a phone that supports both China Unicom’s and China Telecom’s networks. Nevertheless, China Telecom, which expressed interest to offer the iPhone on numerous occasions in the past, looks like it will finally land the sought-after device.

Widening the iPhone’s distribution footprint in China, a key growth market for Apple at a time when the company is increasing sales of its mobile devices around the world, is bound to positively affect the bottom line. China is now the world’s leading smartphone market. Revenue from the country contributed with 12 percent in the more than $108 billion of Apple’s fiscal 2011 revenue, up from just $3 billion in 2009.

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It appears the U.S. Justice Department has some solid evidence against companies including Apple, Google, Adobe, Intuit, Pixar, Lucasfilm and Intel.  TechCrunch obtained a document from the DOJ that is now posted to Scribd.  Among the pieces of evidence, include:

The DOJ settled with the six companies, but a class action lawsuit is pending.  The complaint regards entering into non-poach and no bidding war agreements. The above mentioned companies allegedly lowered employee compensation artificially while hindering mobility.

The plaintiffs seek damages for any salaried employee who worked for one of the defendants during a 4-year period in the late 2000s. That means a lot of Silicon Valley tech workers could receive a payout if the defendants lose or settle the case. The civil case will be heard by Judge Koh in San Jose starting January 26th, 2011

The defendants, including Apple, asked the case to be dismissed, stating that the DOJ found “no overarching conspiracy” and that these bilateral agreements were separate.

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Hot off the heels of Apple’s iBook Textbooks and iBooks Author announcement, the Cupertino, Calif.-based Company passed a $400 billion market cap briefly today, AllThingsD pointed out. Apple also saw a new company record of $431 a share this afternoon —up $2 from yesterday’s record. As the afternoon continued on, Apple’s market cap went down to $398 billion again, but it is still close to coming back. For comparison, the world’s most valuable company, Exxon, has a market cap of $417 billion. Apple was at one time the most valuable company in 2011.

As CNN Money pointed out, Apple with a market cap of $400 billion is worth more than the countries Greece, Austria, Argentina, and South Africa.

Apple dominated financially in 2011, and it continues in 2012. Next Tuesday, the company will report what is expected to be record earnings from Q4. Apple is also expected to break past the sales of 5 million Macs and up to 30 million iPhones, some analysts claimed. We will be covering Apple’s financial announcement next Tuesday. Stay tuned!

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iTunes U (Click to enlarge):

iBooks 2:

Thanks @sonnydickson for the images 

We have been finding references to 2X iPad images for well over a year (including iBooks 1.2), but with the next iPad expected soon, these images found in the iBooks 2 file have some importance:

We’re still expecting a 2X Retina iPad in the coming months.

Thanks Brenden!
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Apple has opened retail stores prime locations like Grand Central Station and Fifth Avenue in New York, Covent Garden in London, the Louvre in Paris, and its Beijing store with a 40-foot curved glass exterior. While those stores may be large, beautifully architected, and significant, Apple is preparing a new store that will be even more extraordinary for the decade-old retail chain…

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Watch the full stream here or get it on iTunes.

Check out our full coverage of Apple’s education event and additional assets:

ARTICLE – Liveblog: Apple’s education-focuse media event in NYC
ARTICLE – Update on business metrics from Apple’s education event
ARTICLE – Apple releases iBooks 2, a brand new textbook experience for iPad
ARTICLE – Apple to price new iBook textbooks at $14.99 or less
ARTICLE – Apple announces iBooks Author, free Mac app for authoring textbooks
ARTICLE – Apple launches iTunes U, free iOS app for educators to take courses anywhere
ARTICLE – Apple releases iTunes 10.5.3 with support for textbook syncing to iPad
ARTICLE – Heartwarming clip of teachers and students Apple played at the presser
ARTICLE – An overview of publishing and distribution for iBooks Author
VIDEO – Gallery of elements that can be used for interactive iBooks
VIDEO – The iBooks Textbooks promo
PR – Apple reinvents textbooks with iBooks 2 for iPad
PR – Apple unveils all-new iTunes U app for iPad, iPhone & iPod touch
SUPPORT – iBooks Author: Best practices for using 3D models
SUPPORT – iBooks Author: Use iPad-safe fonts when authoring books
SUPPORT – iBooks Author – How to make your iBooks accessible
SUPPORT – iBooks Author – Add video to your iBooks
SUPPORT – iBooks Author – Publishing and distribution FAQ
CHANGELOG – iTunes 10.5.3 for Mac
CHANGELOG – iTunes 10.5.3 for Windows (64 bit)
APP STORE – iBooks Textbooks section in iTunes
APP STORE – iTunes U for iPhone, iPod touch and iPad
APP STORE – iBooks 2 for iPhone, iPod touch and iPad
APP STORE – iBooks Author for Mac
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[youtube=http://www.youtube.com/watch?v=KJxZG2Nv4KA&feature=channel_video_title]

With Apple’s education event now behind us, there is a lot to digest here. In addition, today has brought us three interesting software releases: “iBooks 2” and “iTunes U” apps for the iPhone, iPod touch and iPad, and the “iBooks Author” program for the Mac. If you missed our live coverage and have been wondering why all the fuss, a clip Apple played at the presser should get you up to speed.

Available for viewing  by clicking on the above image, the video sports both teachers and students who rave about the mess that is the United States education system and how Apple is arriving to the rescue. As always, the video is heartwarming and it is well worth the 7 minutes and 22 seconds of your time. You may also want to check out this resource on Apple’s website dedicated to iBooks Textbooks for iPad that contains many video tours.

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Along with today’s Education updates, Apple released a new version of iTunes today to allow the syncing of interactive iBooks textbooks to your iPad and to presumably add new features for the “iBooks 2.0” app and the updated iTunes U program.  On my install, the 107MB download took an additional 257MB of storage space.  Get downloading folks.

What’s new in iTunes 10.5.3

iTunes 10.5.3 allows you to sync interactive iBooks textbooks to your iPad. These multi-touch textbooks are available for purchase from the iTunes Store on your Mac or from the iBookstore included with iBooks 2 on your iPad.

iBooks textbooks are created with “iBooks Author” — now available as a free download on the Mac App Store

For information on the security content of this update, please visit: support.apple.com/kb/HT1222

iTunes 10.5.3 requirements…
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[slideshow]

Apple’s education event is underway at New York City’s Guggenheim Museum, where Eddy Cue, the company’s vice president of Internet Software and Services, told the audience how Apple is “going to help teachers reinvent the curriculum.” Noting that Apple has seen 700 million downloads from iTunes U, Cue took the wraps off a brand new free software for the iPhone, iPad and iPod touch. Aptly named iTunes U, the app makes it “simple for anyone to take courses anywhere.”

Indeed, adorned with the beautiful mahogany bookshelf graphics, the app is akin to iBooks in many respects. It is aimed at teachers and supports many interesting features, including the ability to customize topics, provide students with office hours, post messages to the class and give assignments. With this app, content can be downloaded for later consumption or streamed directly to students on-demand. More information is available after the break and at Apple’s freshly updated web site.

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Apple’s education event is underway at New York City’s Guggenheim Museum where the company announced the “iBooks 2″ app, a major new version designed to help integrate the iPad into school curriculum. That was Apple’s first highlight of the event — reinventing textbooks. We have been given some interesting metrics, and now Schiller unveiled “iBooks Author.” It is a new (and free!) Mac app for authoring e-books.

“Authors are going to love to use iBooks Create to create not only textbooks, but any kind of book,” said Schiller. Roger Rosner, Apple’s vice president of Productivity Software and iWork took the stage to give an interesting demonstration. Upon choosing one of the templates that ship with the program, users can begin adding their own photos, movies, text and multi-touch widgets in a fashion similar to the Pages program.

The iBooks Author reflows text dynamically, WYSIWYG-style, as you drag page elements around. It also supports Microsoft Word format, and the app is clever enough to automatically create sections and headers and lay out the pages automatically when you drop a Word document onto the chapter. Additional tidbits are available after the break.

[slideshow]

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Image courtesy of AllThingsD

Apple’s education event is underway at New York City’s Guggenheim Museum, where Phil Schiller, the company’s vice president of worldwide marketing, provided an update on key metrics related to Apple’s education business. Remarking that the United States “is not at the top of industrialized nations,” Schiller said: “If you’re a freshman, you only have a 70 percent chance of graduating.”

After playing a video that outlined the problem with U.S. education today, Schiller said “no one person or company” could fix it all. Apple, of course, will try. The basis for such an ambitious undertaking, of course, is the iPad, which Schiller said was No. 1 on kids wish lists this holiday season. The goal is to help integrate the iPad into the curriculum.

However, the iPad is already strong in education. Here are some interesting metrics:

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image via the Verge

NOTE: The full coverage is right after the break.

McGraw Hill CEO Terry ..wait for it.. McGraw is in attendance.

10:00am: Schiller time! “We’re proud to help students learn”…and “Students are being introducd to the iPad”

10:03: “In general Education is in the dark ages”

10:05: 20,000 EDU apps on iPad. Many more in iBookstore

10:07: 1.5M iPads used in Education.

10:08: “Reinventing Textbooks”

10:09: How do textbooks measure up? Content amazing but portability and durability are bad.

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