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Jailbreak hotspot-ers: AT&T is moving you to a tiered data plan involuntarily

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We’ve gotten word from some readers that AT&T is moving forward and removing unlimited plans for users who jailbreak iPhones to tether or hotspot off of AT&T’s unlimited data plans (for those grandfathered):

I was just informed that as of Thursday August 11th 2011, if you use MyWi or any tethering on the phone or using the phone as a modem, AT&T will automatically change ur unlimited plan to a 2Gb tethering plan for 45 dollars without the customers consent. This is for those who received emails or texts about the use of tethering without an AT&T tethering plan.

An AT&T spokesperson has confirmed this, but not August 11th as a hard cutoff date, saying:

Earlier this year, we began sending letters, emails, and text messages to a small number of smartphone customers who use their devices for tethering but aren’t on our required tethering plan.  Our goal here is fairness for all of our customers.  (This impacts a only small percentage of our smartphone customer base.)

The letters outline three choices:

1) Stop tethering and keep their current plan (including grandfathered unlimited plan)

2) Proactively call AT&T or visit our stores and move to the required tethering plan

3) Do nothing and we’ll go ahead and add the tethering plan on their behalf — after the dated noted in their customer notification

Is this fair of AT&T?  Well, it is certainly fair that people pay for the data that they are using and unlimited tethering turns your iPhone into a data sucking monster.  AT&T’s service to others is obviously affected, so they have to do something about it and this seems like a reasonable solution.  The obvious retort is that some may have purchased their unlimited plans back when unlimited really meant unlimited, jailbroken or not.

The matter doesn’t appear up for debate however. MiWi users: get your free data this week and hope AT&T doesn’t decide to move you over early.
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At 3 in Sweden, the iPhone 3GS is on a fire sale

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Three in Sweden is having a “half price sale” on the iPhone 3GS “while supplies last”.  The free iPhone 3GS with the 99 Kroners a month ($15.42) plan works out to about US$370 for the entire contract and that is before minutes and the unlimited Internet (throttled after 1GB) are considered.  That is incredibly cheap.

In the US, the price of an iPhone 3GS off contract is still over $400 and we’re used to some of the lowest prices on Apple products globally.

The move would seem to indicate that the iPhone 3GS is nearing its end of life (EOL) and prices may begin to drop in other countries as well.

The Swedish carrier’s move is interesting because we heard a report last month that the iPhone 3GS would continue to be offered next year at a sub-$350 prepaid option alongside the ‘iPhone 4S’.

Updated: Denmark too!

Machine translated plan, below:
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This is how a 4.7-inch iPhone 5 would measure up against 3.5-inch iPhone 4

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In case you haven’t noticed, a rumored Fall release of iPhone 5 is being preceded by the usual media brouhaha. Is Apple going to release its next handset in September? How about October? Maybe they’ll gradually bring the device to market over the course of both months? Has the company already field-tested the gizmo in June? And if the phone is already in production, how come carriers are only now getting prototypes in sealed boxes? Do case leaks mean a ringer switch has been repositioned to the opposite side? And what’s with those iPhone 4 price cuts at Target and Radioshack and AT&T vacation blackouts?

Disregarding all of the above for a second, what exactly about Apple’s fifth-generation iPhone is going to blow our socks off the most? If you ask Sterne Agee analyst Shaw Wu, it’s the large display combined with an even thinner profile than iPhone 4:

It turns out that we are picking up that this interim iPhone refresh in the Fall timeframe could be a bigger upgrade than we expected. We believe this makes sense to improve the iPhone experience without making it too bulky as we have seen with models from competitors.

But what exactly is ‘bulky’ these days? Are we talking a few millimeters larger display or ‘Android superphone bulky’? Italian-language MelaBlog.it did a cool side-by-side comparison of the current-generation iPhone 4’s 3.5-inch display and the rumored iPhone 5 at various display dimensions. An iPhone 5 with a 4.3-inch display would require a frame wider and taller ten millimeters than that of the iPhone 4, while keeping the same 9.3 millimeter profile. Reducing the display edges “to a minimum” – that’s an edge-to-edge display for you – could allow Apple to engineer a monstrous 4.7-inch device, as depicted in the above drawing. There’s just one problem, though (plus, a cool reader mockup below the fold)…


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Rumor: iPhone 5 launching in October, not September

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iPhone 5 knockoff

John Packowski writes for The Wall Street Journal’s blog AllThingsD that, alas, iPhone 5 will be launching in October, not in September as the rumor mill has been buzzing over the past few weeks. This information apparently comes from an unnamed source close to Apple. The blog has been right about many things Apple in the past so it’s worth mentioning here:

So those rumors claiming the iPhone 5 will debut in late September? They’re wrong. Instead, it’s going to be an October surprise — the month in which Apple will be launching its next generation iPhone.

We received solid information last month that AT&T was making big changes to its insurance policy related to iPhones in the first week of October.  Additionally, we broke the news that AT&T was introducing a new throttling policy as of October 1st as well.  The writing appears to be on the wall.  But AllThingsD think it will be a late October surprise:

So when can we expect the company to uncrate the iPhone 5? “October,” the source said, while declining to offer a hard-launch date. Other sources said it will be later in the month, rather than earlier.

Others have reported that AT&T has blacked out employee vacations in the September’s last two weeks, which is usually a sign of a major product launch which may or may not be related to a new phone from Apple. This unconfirmed piece of the puzzle was apparently provided to Gizmodo by an AT&T employee this past Friday who noted that “historically the only time they’ve done this was for an iPhone release”, adding that “we’re looking at the last two weeks of September”.  BGR said that it was the first two weeks of September.  Not so says AllThingsD:

“I don’t know why AT&T’s calling for all hands on deck those weeks, but it’s not for an iPhone launch,” a source familiar with Apple’s plans said.


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iPhone 3GS supply tightens ahead of likely discontinuation this fall

Although it seems likely that Apple will soon discontinue its legacy iPhone 3GS, some reports have said that Apple will retain the device as its cost-effective pre-paid option. Others, including us, have reported that Apple is preparing two next-generation iPhones for this fall: one as the successor to the iPhone 4 and one as a cheaper, possibly pre-paid model.

According to several sources in different countries, stock of Apple’s iPhone 3GS is quickly tightening with hardly – or even any – shipments coming through to certain regions. In addition, according to a source at one popular international carrier, the iPhone 3GS has disappeared from the stock database.

We have heard from reliable sources at a major European iPhone carrier that stock of the iPhone 3GS is unusually low, with little stock coming through for the next few weeks. An accurate source at a major U.S. based iPhone reseller also reported to us that stock of the iPhone 3GS is significantly lower than usual. In addition, this source says, similarly to what our European carriers sources reported, that no iPhone 3GS shipments are coming through to several districts in the United States. On top of all of this, an accurate source with a hand in Apple’s global channel shipping operations reports that shipments of the 3GS are rapidly decreasing with a little amount of units remaining in the channel.

Apple gradually tightens its shipments and production of products ahead of its upgrade or discontinuation. This minimizes already-replaced product inventory from the company’s product lineup (which Apple often just moves to “refurbished”). This iPhone 3GS situation is a prime example of this process.

It is also possible that Apple is preparing an upgrade to the iPhone 3GS. Perhaps they will bump the screen or change something internally (A4?). It is also entirely possible that Apple is decreasing iPhone 3GS supplies in anticipation of more people buying the next-generation iPhone.


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AT&T to implement data throttling in early October, just in time for iPhone 5

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Update: AT&T has officially verified this information.

A new change for AT&T Wireless’ Unlimited Data subscribers will soon be taking place. Rumored to be starting in the first week of October, we’ve heard that AT&T will start throttling the data speeds of the network’s top data hogs.  As Verizon (PDF) and Virgin have recently done, AT&T will be adopting a similar plan to try to curb the problem of data congestion and overall network issues that have hurt its 3G network’s performance since the onset of the iPhone.

AT&T will also be releasing its first LTE devices later this year.

We’ve heard that AT&T will rejigger its insurance structure that week as well, which makes us think a certain high profile device may be launching on or around that time.

The throttling plan will work like the others’. The heaviest users will see significant speed decreases for one billing cycle once they go over a threshold of data (we’re guessing 2-4GB?).  These heavy users will still be able to access the network, but at a much slower speed.  At the start of the next billing cycle, their speeds will return to normal.  We don’t have numbers for AT&T’s throttle speeds but Virgin takes you down to 256Kb/s once you’ve reached their 2.5GB limit (not too bad actually – sometimes we’re happy to get 256kbs).  Interestingly, Virgin’s throttle also will also be implemented in the first week of October which may indicate that they’ll be carrying a certain high profile mobile device as well.

Frankly, throttling isn’t so bad if done fairly.  It is a good way to penalize heavy users but without them having to worry about overage charges.  For high end users, however, it wold make sense for AT&T to add the ability to buy more regular speed data like they do now…
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New iPad Commercial – ‘We’ll Always…’

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

Apple released another excellent iPad ad this evening demonstrating how the iPad is changing the way we do things forever.  It is, like the last few wonderful ads: We Believe, If You Asked  and Now narrated by Peter Coyote and built by Media Arts Lab in Los Angeles.

We’ll never stop sharing our memories…or getting lost in a good book. We’ll always cook dinner and cheer for our favorite team. We’ll still go to meetings, make home movies, and learn new things. But how we do all this will never be the same.

You’ll notice a well-timed little lesson in ‘Lion’ toward the end as part of the Alphabet Fun App.

Other not built-in apps were: The Photo CookbookMLBFuze HD and Apple’s iMovie.


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Chair of the Senate’s Antitrust Subcommitteee seeks to block AT&T – T-Mobile merger

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Sen. Herb Kohl, D-Wis., who chairs the Senate’s Antitrust Subcommitteee, is calling for regulators to block the proposed merger of AT&T and T-Mobile:

 “I have concluded that this acquisition, if permitted to proceed, would likely cause substantial harm to competition and consumers, would be contrary to antitrust law and not in the public interest, and therefore should be blocked by your agencies.”

Top Democrats in the House also viewed the merger unfavorably:

“We believe that AT&T’s acquisition of T-Mobile would be a troubling backward step in federal public policy–a retrenchment from nearly two decades of promoting competition and open markets to acceptance of a duopoly in the wireless marketplace,” House Energy and Commerce Communications and Technology Subcommittee Chairwoman Anna Eshoo, D-Calif., Rep. Edward Markey, D-Mass., and House Judiciary ranking member John Conyers, D-Mich., wrote in their letter to FCC and the Justice Department. “Such industry consolidation could reduce competition and increase consumer costs at a time our country can least afford it.”

Not exactly what AT&T wants to hear.  T-Mobile, if it gets out of this AT&T merger, also gets a $3+B check from AT&T for the dance.
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Job listing hints at possible August 16th iPhone launch

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A new report from Cnet.co.uk seems to imply that Apple could launch a new iPhone on August 16th.  Their source?  A job posting for temporary workers who would work the last two weeks in August.

The job listing, posted by Gekko Ltd., says Apple is looking for a “full-time iPhone Sales Staff for an exciting project to work 5 days a week (Tuesday-Saturday) for the period 16th August – 29th October within key retail stores”. Oddly enough, Apple didn’t post the listing on their own, rather hiring out Gekko Ltd. to find their new Apple Store talent. Gekko appears to have worked with Apple before:

The awards page on Gekko’s website indicates that it has worked with Apple in the past on shops within shops — the specific Apple-branded sections within larger outlets. We’d wager that Gekko is hiring to fill these sections, as one of the responsibilities of the advertised role is to “ensure the Apple area within the store is effectively merchandised”.

Rumors pointing to a September or early October  launch for the new iPhone have been prevalent so far with Apple’s traditional  early September music announcement, but we’re happy to line up early.  Full listing below:
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Virgin hikes plans and introduces throttling, just in time for an iPhone?

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We’ve discussed the next generation ‘value-tier’ iPhone.  But we weren’t the first.  Apple COO Tim Cook was.

While Tim stopped short of explicitly stating that Apple would pursue a lower price iPhone, he did state that Apple was working hard to “figure out” the prepaid market and that Apple didn’t want its products to be “just for the rich,” but “for everyone”; he also stated that Apple “understood price is big factor in the prepaid market” and that the company was “not ceding any market.” ….He further noted that the handset distribution model was poorly constructed and that Apple would look to “innovate” and do “clever” things in addressing that market.

That was the WSJ tapping the line (har) of  Bernstein Research’s Toni Sacconaghi in February.

Today, Virgin announced that it was hiking its data plans to $35/month for unlimited data which coincides with the launch of a big Android phone. But more interesting, to me anyway, was that Virgin is changing its ‘unlimited’ to ‘unlimited with throttling at 2.5GB’ in…October.

Beginning in October 2011, Virgin Mobile will also move to reduce data speeds when a customer’s data usage exceeds 2.5GB in a month but still provide unlimited 3G access without a contract, usage cap, overage or activation fees. Based on current usage patterns, fewer than 3 percent of Virgin Mobile USA customers use more than 2.5GB of data usage per month. After reaching this level, this minority of customers may experience slower page loads, file downloads and streaming media. When a customer’s next month begins, the data usage meter starts back at zero with unlimited 3G speeds.

If Apple was going to do a pre-paid carrier in the US, it would certainly be Virgin (vs. Cricket, US Cellular, Boost).  If Virgin did do iPhone, they’d certainly want to put measures in place to prevent the iPhone from killing its network.


image via

We got word yesterday that AT&T was changing its iPhone insurance plans on October 4th, perhaps signaling some new models.  With what we had, we’d have given the info about a 25% shot of being legitimate.  However, since then, we’ve heard that a big commotion was made about that information being made public.  Based on that and today’s Virgin announcement, we’re thinking the probability of that date being right has increased significantly.
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AT&T to slash international data roaming prices on July 17th

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One of the advantages of AT&T’s GSM iPhones (and iPads) is that they  can roam just about anywhere in the world fairly easily.  For that convenience, AT&T charges a hefty – some would say exorbitant – fee (illustrated above, left).

Today, AT&T has announced a significant (2.5-5x) drop in international fees.

You get 2.5 times the data for $25 which is now set at 50MB.  At the high end, you get 4x the data, 800MB, for $200.  And overages used to cost $5/MB(!!); now it is ‘just’ $10/10MB.

It is still far from cheap and smart travelers will continue to pick up a Mifi, unlock and use a local SIM or just stick to Wifi hotspots.  But it is something, right?
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AT&T raises iPhone device tier on October 4th, perhaps signaling launch date?

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We’ve just been handed some internal AT&T information on device changes:

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A new tier of device will be created in AT&T’s phone database on October 4th (a Tuesday:) which will require a higher rate of insurance.  iPhone (and other devices) will move there on the arbitrary October 4th date.  It is curious that the iPhone was mentioned specifically and not other devices.

While light years away from a new iPhone launch date confirmation, it could be a sign that new iPhones will hit AT&T in this timeframe.

In any case, it might be a good idea to buy insurance before that date as the monthly prices are going up.

Thanks at&T!
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Localytics: Verizon claiming almost a third of all US iPhone 4s

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Analytics company Localytics today published a report on the rise of the Verizon iPhone.  In the July month, it accounted for 32% of all iPhone 4s purchased (AT&T is still selling iPhone3GS, and has the US exclusive on the $49 iPhone).  That’s with AT&T’s 8-month head start.

It’s not all gravy for Verizon.  Localytics surmises that the biggest selling point to US users was the ‘unlimited’ data plans…which end today.

Why the recent uptick in Verizon adoption? One reason may be Verizon’s unlimited data plan, which they are scheduled to do away with on July 7th. AT&T officially discontinued its unlimited data plan in mid-2010, although existing customers were allowed to keep their plan as long as they remained AT&T customers. We’ll continue tracking the shift in iPhone 4 market share to see if Verizon loses momentum post-unlimited-data.

It will be interesting to see the split on iPhone 5 when all carriers (including Sprint T-Mobile and others?) are equally pitted against each other.
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Second AT&T iPad hacker indicted

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Reuters is reporting that the second hacker has been indicted in the case of personal data being copied from AT&T iPad infrastructure. Earlier this year, the two hackers breached AT&T’s servers and received 120,000 iPad users’ personal data.  They then reported that data to a media outlet who embarrassed AT&T.  Two weeks ago, the first hacker, Daniel Spitler, plead guilty last week and could wind up testifying against his accomplice to reduce his sentence.

The hacker indicted today, Andrew Auernheimer, is being charged with one count of conspiracy to gain unauthorized access to computers and one count of identity theft.

Andrew Auernheimer was charged by a Newark, New Jersey grand jury with one count of conspiracy to gain unauthorized access to computers and one count of identity theft, the office of U.S. Attorney Paul Fishman in New Jersey said.

Auernheimer is free on bail, while his partner Spitler is waiting sentencing September 28th. Spitler could face 12 to 18 months in prison. 
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T-Mobile USA: We’re now carrying over a million unlocked iPhones

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image via BGR

As AT&T tries to swallow up the American wing of the German telekom, many have wondered whether Apple would allow T-Mobile to carry the iPhone.  Apple’s answer so far is a no*, but that hasn’t stopped T-Mobile customers from adopting iPhones.  In huge numbers.

In a meeting with T-Mobile spokespeople today ahead of the NYC Pepcom event, I received word that there are actively over a million Apple iPhones currently on T-Mobile’s network.  When asked for a breakdown, the spokesman said the majority were pre-iPhone 4 but that a significant amount of people had “taken the scissors” to their T-Mobile SIM cards.  T-Mobile doesn’t currently offer a Micro-SIM solution for Apple’s iPhone 4 so people who want to use the iPhone 4 must modify their SIMs into MicroSIMs.  Those using iPhone 4s also won’t receive T-Mobile’s 3G or 4G data speeds because of the radio differences between the networks.

*Apple started selling unlocked iPhone 4s in the US for the first time earlier this month.

When asked to elaborate further on Micro-SIMs, the spokesman told me they are in the works but there was no time frame for release.  Why not wait until the deal with AT&T is over to make MicroSIMs?  Perhaps we’ll have a little surprise come September.

When asked specifically about the possibility of a T-Mobile USA iPhone, T-Mobile said they have nothing to announce at this time.
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Shammo: Next Verizon iPhone will be world Phone and released at the same time as AT&T's

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Last Month, Verizon CFO Fran Shammo told an investor conference call that the Verizon iPhone would be a World phone.  The CFO was also the first to reveal the Verizon iPad.  Many think that the current Verizon iPhone’s inclusion of a worldphone-capable Gobi chip from Qualcomm is a preview into the future of the iPhone line.

Again, today  Shammo told the Reuters Global Technology Summit a bit more:

While Verizon has sold fewer iPhones than some analysts expected, Shammo said he was happy with sales of the “six-month-old phone” that only works in some countries.

When the next iPhone model launches Verizon will be able to offer it at the same time as AT&T. Verizon’s version will also work in as many countries as AT&T’s iPhone, which has global coverage, Shammo said.

Some customers held off on buying the first Verizon iPhone because they were waiting for a model that supports Verizon’s high-speed wireless service, which runs on a new technology called Long Term Evolution (LTE).

Shammo said that even if the next iPhone does not support LTE, Verizon will have enough high-speed alternatives to sell.

That’s a pretty good clue that the next iPhone won’t be LTE, which Apple CFO Tim Cook all but revealed himself at the last earnings call:


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Lawyers: AT&T is overcharging iPhone and iPad users up to 300 percent

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http://www.msnbc.msn.com/id/32545640

The lawyers contend that AT&T is overbilling for data and they’ve run tests to confirm the data overcharges. Tests include buying a new iPhone, turning everything that would use data off and letting it sit for two weeks. They contend that 35 different data charges occurred during that time.

AT&T contends that the iPhone uses data without the customer knowing. Recently, Apple’s collection of anonymous location data, and subsequent exchange of tower signal strength knowledge was brought into the spotlight. Perhaps that system is a data usage issue – even when data services are turned off.

It will be interesting to see how this one turns out.

(Flash issues? Hit up MSNBC via The Loop)

Update: This looks like an update to an earlier lawsuit reported in February (thanks Seb!)


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Thanks to AT&T's marketing tactics, the next iPhone will be '4G'

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…in fact, if Apple turned on the HSPA part of the Gobi 14.4 chips in its Verizon iPad and iPhone, they’d already be 4G, at least according to AT&T.

Chris Ziegler noticed today that AT&T has started calling regular old 14.4Mbps HSPA devices 4G in its latest marketing materials.  Until recently, the pseudo ‘4G’ was reserved for HSPA+ on T-Mobile which tops out at 21Mbps.  However, with the release of the HPalm Veer 4G, HTC Inspire 4G and  Motorola Atrix 4G, AT&T has extended the ‘4G’ down to speeds of  14.4 Mbps, the same speed as those Qualcomm chips that Apple loves.

Most industry watchers expect the next iPhone to run on some version of the Qualcomm chip that the Verizon has which would let it do double radio duty and be operable on all US networks.

As Ziegler notes, AT&T is paving the way to charge extra for the benefit of using the newly branded ‘4G’ which doesn’t sound good to us.
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Could the next iPhone support all U.S. carriers?

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Since BGR broke the news that Apple is testing, or has tested, a version of the iPhone that works on T-Mobile USA’s network, we started thinking about the future of the iPhone. Specifically, the fifth-generation product that is not too far off from public consumption. Right now, the iPhone 5 – or whatever Apple ends up calling it – does not seem to be such a big hardware upgrade. Sure there are reports that peg a gesture-based home button and 3.7 inch display (which we would love), but more reports are talking an iPhone 4 design, an A5 chip, and possibly a better camera.

What could Apple throw into the purported iPhone 5 package to make it a better device and a device that more people would buy? Right now, the general consensus is that Apple is going to use a Qualcomm chip within the iPhone 5 that can connect to both Verizon (CDMA) and AT&T (GSM) networks around the world. What about T-Mobile? Apple is obviously testing the T-Mobile iPhone (4S?) and with the technology available for Apple to create an antenna system that supports both types of GSM networks, what stops Apple from making an AT&T+T-Mobile iPhone 5? We received an unconfirmed report, from a connected individual, that Apple is actually testing a device that runs on both networks…


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iOS 4.3.2 to fix Verizon iPad, Facetime issues

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A BGR Source has the 4.3.2 update and it appears to fix those Verizon iPad 2 issues that have 3G connections freezing. The update…

will fix the issues we’ve been hearing about with some Verizon iPad 2 models. Additionally, the new update is said to contain a fix for FaceTime in addition to security fixes for things like WebKit vulnerabilities and other minor changes.

It isn’t certain yet if this update is for Verizon iPhone 4s but that’s a bit …due as well.
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AT&T CEO says T-Mobile deal will boost iPhone service, chances for world peace

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Good ol’ AT&T has got their PR machine in high gear today.  CEO Randall Stephenson told Businessweek that the T-Mobile deal would instantly bring more bandwidth to users in constrained cities:

“This transaction is very instrumental” in improving network service, said Stephenson at the event. “Virtually on the day you close the deal, getting a 30 percent lift in capacity in New York City: that’s a significant improvement in call quality and data throughput.”

Other things that would have helped: Adding capacity at the same rate you were adding customers.


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Apple starts pushing back iPad launches?

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People awaiting iPads in the Czech Republic were told they’d be in the first group of countries (outside the US) to get an iPad on March 25th.

We’re not sure why but the Czech Republic iPad website now shows they just got pushed back a month. (for those not in the know, Dubna=April).

Update: Apple has removed (not corrected) the launch date.

Update 2: Apple has finally got its Czech translator on the ball – says Brezna (March) now

Could be some issues with equipment and government specific to Czech Republic, a translation error or could be supply constraints like last year.

Time to hit eBay?

(Thanks Pavel!)
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Yellow tinting hitting early users again

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Just like the previous iOS device launch days, today’s iPad 2 launch is spawning reports of some minor issues.  We’re getting some images of the yellow tint we saw last year.

Reader N. Peach sent this in. In all likelyiehood they yellow will dissipate just like last year’s issues as the glue from the factory dries.  Another reader’s is below:
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What we think we know about the Verizon iPhone

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COMPUTERWORLD: After a CES no-show, Verizon is teasing us with an iPhone-generated Tweet today on the eve of its press event where it is expected Verizon will at last introduce the iPhone, meaning US customers will now enjoy some choice of which network carries their iPhone. The move should also boost Apple in its battle with Android. So, what do we know?

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