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Analysts: Apple has a strong case in DOJ’s lawsuit over eBook price-fixing

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Yesterday, the U.S. Department of Justice filed a lawsuit against Apple and five other publishers over eBook price-fixing. The Department of Justice reached a settlement with three of the publishers in the suit, but Apple, MacMillan, and Penguin are standing strong (the U.S. is also after Simon and Shuster). Yesterday, MacMillan’s CEO released a letter on the matter and explained why the publisher chose not to settle. In the note, he said the Department of Justice’s settlement demands “could have allowed Amazon to recover the monopoly position it had built before our switch to the agency model.” He also said it is “hard to settle a lawsuit when you know you have done no wrong” and called the agency model the future of an “open and competitive market.”

As CNET noted, the Department of Justice may have a more difficult case against Apple. For one, Apple does not have a strong-hold in the eBook market, because Amazon has the commanding lead with its Kindle sales. The Department of Justice has a case against the publishers rather—and that is most likely why three of them have already chosen to settle. Apple only holds open the store, while publishers are the ones who choose the prices to set.

The settlement reached with three of the publishers yesterday is said to give them “freedom to reduce the prices of their e-book titles,” which allows Amazon to go back to its previous wholesale model.

A key point that the Department of Justice is using in its lawsuit is when all five of the publishers met together at a hotel in London to talk over eBook prices. Apple was not present at the meeting, so this may give the Department of Justice a harder time to press the Cupertino-based Company. Of course, the Department of Justice could still come out victorious, but it may have to dig a little deeper against Apple than it did with publishers. We are sure there will be more out of this case as time goes on.


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Apple’s market cap just crossed $600B

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As the market just begins to open today, Apple’s market cap crossed the $600 billion threshold. Today’s accomplishment comes just a month after the company hit the $500 billion threshold. The market overall is down.

To compare, Microsoft holds the record for the highest market cap ever of $619 billion in 2000 (over $800 billion in today’s dollars). At the time of this writing, Microsoft is sitting at a $250 billion market cap. If some analysts are to be believed, the AAPL train will keep rolling to a $1 trillion market cap in the coming years.

Apple now dwarfs the No. 2 company, Exxon, by a comfortable $200 billion. We are looking forward to April 24 when Apple will talk Q2 2012 numbers.


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It’s tax time and Apple just got itself a new lead tax man

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Apple hired a new leader for its tax department, according to an SEC filing this morning. Phillip Bullock, formerly Symantec’s Chief Accounting Officer, chose to leave the company he joined in 2006 to join the winning team in Cupertino.

Phillip A. Bullock, who was appointed as Symantec’s Chief Accounting Officer in September 2009, announced he will be leaving the Company to lead the tax department at Apple, Inc., and not due to any disagreement with the Company on any matters relating to the Company’s operations, policies or practices.

Bullok has years of experience in the industry, serving as Vice President of Tax and Trade Compliance starting in 2006. He took responsibility for Symantec’s corporate risk assurance function in March 2007, and then he became Chief Accounting Officer in 2009. Before Symantec, he worked for a small tax practice.

This looks to be Apple’s third major hire this year after it hired John Browett from Dixons Retail to head its retail department. Apple also hired Robin Burrowes from Xbox to head App Store marketing in February.

Apple is known for finding the best in the industry, so we suspect it is no different here. Just in time to submit those taxes.

$1,000 Apple analyst shares what he learned in Asia on the next iPhone

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We reported this morning that Apple has now begun internally seeding a prototype next-gen iPhone with the A5X chip that debuted in the new iPad and 1GB of RAM. Based on his recent trips to China and Taiwan, Topeka Capital Market analyst Brian White, who has Apple’s price target at $1,001 as of this morning, shared some new details of what he described as “the buzz around the new iPhone 5.” According to White (via Barron’s), he expects a “sleek” new iPhone to launch in the December quarter. He also expects the device to sport a new 4-inch display and include 4G LTE capabilities.

White set his price target based on an expected August or September unveiling of the product. He also claimed the launch “could be extraordinary” by dwarfing previous launches and driving the stock closer to our $1,001 price target.” According to the report, Apple is expected to start component production for the “iPhone 5” in June.

White also claimed sales of the new iPad could have been higher if not for a production issue with panel makers related to the new Retina display. Last month, Apple announced its “strongest iPad launch yet” with sales of three million new iPads on its debut weekend…

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Future MacBooks could have this surround sound speaker system

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According to an Apple patent application published by the United States Patent & Trademark Office and detailed by PatentlyApple, Apple is working to implement audio transducers in combination with multiple speakers to enable surround sound configurations on MacBook-like devices. Apple’s focus of the patent appears to be improving audio in mobile devices as speakers decrease in size to accommodate smaller and thinner form factors.

As detailed in the image to the right, one embodiment of the invention shows the use of several speakers and an audio transducer integrated into the bezel and enclosure of a MacBook. These configurations would allow, for example, the speakers embedded next to the display to handle high range frequencies, while the lower speakers would handle mid-range and the audio transducer the low-range. Additional speaker enclosures could be added to enable 3.1 or 4.1 surround sound configurations. Apple also stated the audio transducer could provide both low and mid-range frequencies, “essentially performing as a “subtweeter” for frequency ranges from 20-500 Hz and 500-1500 Hz. The report explained:

 

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RIM (RIP?) is in its death spiral

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There is no way to sugarcoat today’s announcement from the once-great Blackberry-maker RIM. The company is, after years of putting its head in the sand, finally taking drastic measures to change course, including getting rid of former Co-CEO and current board member Jim Balsillie and its CTO and COO (loooong overdue). Revenues are way down—and so are unit sales and prospects.

So, where is the way out of this mess? RIM says it is looking for “strategic business-model alternatives.” It is also considering a sale. Where is there any value in the company?


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Apple working on advanced 3D cameras with object and gesture recognition

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This is not the first time an Apple patent has surfaced relating to three-dimensional camera technologies. A previous patent highlighted advanced 3D object recognition and verification. A new patent—published today by the United States Patent & Trademark Office and detailed by PatentlyApple—shows Apple is continuing to work on 3D camera technologies that could land in future iOS devices. Apple’s patent described a 3D imagining camera that uses advanced microlenses, depth-detection, chrominance, and luminance sensors. The camera could recognize facial expressions and gestures while creating 3D models of scanned objects. PatentlyApple explained:


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Game Over: Latest Nielsen survey says over 90 percent of US Smartphones purchased in last 3 months are iOS or Android

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With iOS gaining roughly 30 percent United States marketshare as of Q4 2011 at the expense of RIM, Nokia and Microsoft, new numbers from Nielsen’s latest study show just how much of a duopoly the U.S. market has become. While noting about 50 percent of mobile subscribers in the U.S. are now smartphone owners, Nielsen gave a breakdown of how the two leading platforms continue to dominate as of February 2012:

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The next Macs will likely have one of these Intel Ivy Bridge processors, due in a month

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Ivy Bridge CPUs launching by April 29

We have heard reports in recent months that the launch of Intel’s Ivy Bridge processor lineup, which will likely find its way into next-generation Apple products, has been delayed. While an April/May launch was expected for some of the lineup initially, Intel confirmed in February that the launch would likely be pushed to June. Today, a report from CPU World that cited various sources claimed the Ivy Bridge CPUs, including both desktop and mobile chips, will launch between April 22 and April 28.


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New patent details Apple’s work with high refresh rate LCD technology HDTVs

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A ton of recent rumors all but confirm Apple plans to enter the TV market with a full-fledged Apple-branded HDTV, but today a patent published by the U.S. Patent and Trademark Office details an advancement of high refresh rate LCD technology known as “fringe field switching.” As described by PatentlyApple, Apple’s patent offers advancements in the technology that would allow FFS for use with large screen HDTVs. The report noted, “Previous versions of FSS couldn’t accommodate such large displays.” PatentlyApple explained:


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Apple offers royalty-free licensing of proposed nano-SIM to competitors (Updated)

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Update: Nokia has responded to reports that Apple is offering to license its nano-SIM patents royalty-free by claiming Apple does not have patents “essential to its nano-SIM proposal” (via ITworld):

“We are not aware of any Apple Intellectual Property which it considers essential to its nano-SIM proposal. In light of this, Apple’s proposal for royalty-free licensing seems no more than an attempt to devalue the intellectual property of others.”

In recent weeks, reports popped up that suggest Apple is attempting to push a new standard for miniaturized SIM cards. In May 2011, Reuters reported Apple “submitted a new requirement to (European telecoms standards body) ETSI for a smaller SIM form factor.” More recent reports from the Financial Times confirmed other companies, including Motorola and Nokia, were attempting to push their own “nano-SIM” design. At the time, FT said Apple had support from “most of the European operators.” Ahead of the Smart Card Platform Plenary meeting with the European Telecommunications Standards Institute this Thursday and Friday, Foss Patents reports Apple is promising the ETSI it will license any Apple-owned patents related to nano-SIM free of charge to its competitors:

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Square rebrands Card Case as ‘Pay with Square’ in monster update following Paypal’s announcement

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[slideshow]

Square updated its “Card Case” app with a new design, new name, and a shiny new icon (literally) less than a week after PayPal announced its triangular Square competitor.

Unlike the previous version of the app, which used a credit card metaphor for each store you had an account with, version 2.0, now called “Pay with Square,” uses a list of businesses nearby that accept Square payments and allow you to quickly open a tab at any of them. You can also search a map for nearby Square-compatible businesses and add your favorites to a list for quick and easy access on future visits.

What’s new in Version 2.0, below:


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Apple researching universal remote that customizes UIs intelligently

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This is not the first time we have received hints that Apple is working on an innovative universal remote control for controlling TV and video content. In January, we told you that Apple was researching a touchscreen remote with adaptable user interfaces. The invention would essentially allow button layouts stored in the cloud or in a device (such as a TV) to be wirelessly and seamlessly beamed to the controller’s UI. The concept would alleviate the “table full of remotes” scenario Steve Jobs described at D8.

Today, a new patent application published by the United States Patent & Trademark Office and detailed by PatentlyApple gives us even more insight into what Apple’s universal remote concept could become. In the newly discovered patent application, Apple details a remote that is capable of displaying customized controls for various devices by simply taking a picture of the device. Apple would send the picture to iCloud, analyze it, and beam a UI or button layout to the remote that works for your TV. PatentlyApple explained:


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Sprint CEO: iPhone users are more loyal, use less data

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Reports from the Wall Street Journal last October revealed Sprint’s Chief Executive Officer Dan Hesse convinced the company’s board to take on a staggering commitment of approximately $20 billion to purchase 30.5 million iPhones over four years. At the time, Hesse said Sprint “would likely lose money on the deal until 2014. ″ He also claimed not having the iPhone was “the No. 1 reason customers leave or switch.” In an interview with Mobile World Live (via BGR), Hesse defended the decision and claimed, among other things, that iPhone users are “more profitable than the average smartphone customer.”

 Subsidies are heavy for the iPhone. This is the reason why a high percentage of new customers is important… But iPhone customers have a lower level of churn and they actually use less data on average than a high-end 4G Android device. So from a cost point of view and a customer lifetime value perspective. They’re more profitable than the average smartphone customer.”

Hesse went on to claim that Sprint was “pulling a lot of customers” from AT&T and Verizon during the fourth quarter by noting four out of every 10 iPhones the carrier sold were new customers. According to Hesse, that is around double the rate of the other carriers.

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One More Thing Conference, May 25-26th in Melbourne, Australia -making a living developing software for the iPhone and iPad

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Wow. Solid lineup of developer/presenters:

This year we have an awesome speaker line-up, including cool dudes like Loren Brichter (Tweetie/ex-Twitter), Neven Mrgan (Panic), Karl von Randow (Camera+), Raphael Schaad (Flipboard), Matt Rix (Trainyard), Shaun Inman (Last Rocket) and many more.The full line-up and other details like the date and location can be found on our website, www.onemorething.com.au – videos from the 2011 event can be found on Vimeo:http://vimeopro.com/omtconf/2011 and we even have a podcast where we interview all the 2012 speakers up on iTunes: http://itunes.apple.com/au/podcast/one-more-thing-ios-conference/id511706732

This is a great excuse to visit a world-class city.
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Study: Smartphone owners demand bigger screens, prefer 4+ inches

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An interesting study out of Strategy Analytics today says that United States and United Kingdom smartphone owners “prefer device screens in the 4.0-inch to 4.5-inch range, as long as the device is also thin.”

“Almost 90 percent of existing smartphone owners surveyed chose a prototype smartphone with a display larger than their current device,” commented Paul Brown, a Director in the Strategy Analytics User Experience Practice. “This trend is driven by increased mobile web browsing ability, as well as engaging video and gaming experiences.”

Not surprisingly, women overall chose smaller phones than men, and existing Android users chose bigger screens than iPhone users. Still, it seems Apple’s customers would prefer a bigger screen.

Kevin Nolan, Vice-President for the User Experience Practice at Strategy Analytics, added, “In order for smartphone owners to adopt larger devices, it is important for handset manufacturers to ensure that mobile devices are not too heavy and that the devices remain thin enough for purses and pockets.”

The data seems to line up with our January poll of 9to5Mac readers in which the majority prefers the next iPhone to be 4-inches or more:


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AT&T changes its throttling techniques: 3GB for HSPA+ (iPhone) or 5GB for LTE gets you on the naughty list

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AT&T is now getting ahold of their throttling plans by laying out the numbers which will get users put into the “reduced data scenario”.  Instead of the sliding scale “top 5% of users” which often was people under 2GB, they now have a hard maximum of 3GB for HSPA users like those with iPhones and 5GB for their new LTE offerings.  Users will receive a warning the first time but won’t get a notice thereafter.

Additionally, we’ve heard that the actual throttling is a lot less severe as pointed out by some Howard Forums users.

The move follows outcry from customers and even some customer lawsuit victories.

There is a new site and FAQ for those interested.

AT&T statement follows:


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Digitimes: 14 inch Asian MacBook Air, in April, no more 64GB iPads, iPad Mini in Q3, Retina display shortages

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Over the past 24 hours, Digitimes has posted a series of reports each a bit more outlandish than the ones previous to it.  They’ve been right on some stuff in the past but lately it doesn’t seem like they are even paying attention anymore.  Our colleagues at other Apple blogs have been posting every one of these so let’s run them down.

Last night/this morning: Apple ‘considering’ a 14-inch MacBook for Asian Market.

Currently, 14-inch panels are the mainstream specification of the Asia notebook market, while consumers in Western countries prefer 15-inch models. In the global market, 14-inch models have an about 20-25% market share, but in Asia, the market share is about 35-40%, an indication of Asia consumers’ fondness for 14-inch models, the sources noted.

So Apple is going to make a .7-inch bigger MacBook (vs. 13.3 is current) specifically for the Asian Market?  Makes no sense.  Apple won’t even make an iPhone for China Mobile’s 600 million subscribers.  We’re not doubting that Apple could change its size matrix, we just don’t think they will do a special size just for Asia.

Within hours, Digitimes said:

Apple is expected to launch new MacBook Pro notebooks with an even thinner and lighter design than existing models in April, at the soonest. When paired with the company’s upcoming Mountain Lion operating system as well as Apple’s MacBook Air models, the product lines are expected to create a significant threat against notebook players’ ultrabooks, according to sources from the upstream supply chain.

Apple is expected to launch upgraded 13- and 15-inch MacBook Pros in April with initial shipments estimated to reach 900,000 units.

Mountain Lion is currently scheduled for “late summer” as when it will be cut loose.  Also, Digitimes among others, said that Intel’s next processors weren’t coming out until June.  So Apple is going to release a new MBP a few months before new processors?

Tonight it got even more abstract:
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HowTo: Throttle AT&T for throttling your ‘unlimited’ data in 5 steps

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[youtube=http://www.youtube.com/watch?feature=player_embedded&v=XW5aEQzTcW0&start=24]

By popular demand, MacTech provides a primer on taking AT&T to small claims court provided by attorney Bradley Sniderman.  Recently a plaintiff in Los Angeles CA won a $850 settlement and per AT&T’s EULA, class action lawsuits are not possible so this might be your only means of exacting revenge on your limited unlimited plans.  Excerpted:
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Adobe introduces ‘Primetime’ end to end video publishing solution

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Along with Photoshop Touch for iPad 2, Adobe today officially announced ‘Primetime’ this morning.  Primetime is a mashup of its video  publishing, analytics and advertising platforms which aims to provide end to end video solutions for video publishers.  Viewers on all four major platforms: Windows, Mac, iOS and Android will be able to use the output and Adobe specifically mentions that it will work on Apple’s native video, without requiring any tricks.

Video and release follows:
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Intel: Ivy Bridge 22nm chips due in next round of Macs delayed for two months?

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The Financial Times reports that Intel is expecting its 22nm Ivy Bridge processors to be delayed until June, according to Executive Vice-President of Intel and Chairman of Intel China Sean Maloney.

Intel expects its next-generation microprocessors to go on sale eight to 10 weeks later than initially planned, according to Sean Maloney, executive vice-president of Intel and chairman of Intel China.

In his first interview to discuss Intel’s business in China, Mr Maloney told the Financial Times that the start of sales of machines equipped with Ivy Bridge – the 22nm processor set to succeed Sandy Bridge in notebooks this year – had been pushed back from April. “I think maybe it’s June now,” he said.

Digitimes originally reported the delay, but V-R Zone said it was only for certain dual core chips that would most likely not affect Apple’s products. From the comments above, it seems the delay is broader than expected.


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Proview brings the ‘iPad’ name battle to the US

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Sick of Proview yet?

The bankrupt Chinese company that sold Apple the ‘IPAD’ name only to claim it was deceived by Apple’s secret IP Application Development subsidiary is now suing Apple in its own back yard, according to the WSJ.

The lawsuit, which was filed in the Superior Court of the State of California in Santa Clara County on Feb. 17, but previously unreported, claimed that Apple had committed fraud when it used a company set up by one of its law firms, called IP Application Development Ltd., to purchase the iPad trademark from Proview on Dec. 23, 2009 for 35,000 British pounds ($55,000).

Proview’s point of view?

In emails seen by The Wall Street Journal, a representative purportedly of IP Application Development told Proview that it wanted to acquire the iPad name because it was an abbreviation of its company’s title, and that its future products wouldn’t compete with Proview’s products.

Proview is bankrupt and its products look like cheap original iPad knockoffs (right). A judge in Shanghai denied Proview’s motion to ban sales of iPad in the city earlier today.


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Analyst arrested for leaking iPhone sales numbers, charged with insider trading

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[youtube=http://www.youtube.com/watch?v=Vb6zrVLaL6c]

Analyst John Kinnucan is charged with two counts of securities fraud, two counts of conspiracy, and insider trading for leaking sales numbers from Apple, reported Reuters. The lawsuits against the analyst were filed in a U.S. District Court in Manhattan, and he was arrested on Thursday.

Kinnucan received tips from Apple’s suppliers SanDisk and Flextronics so he could leak sales numbers and forecasts to hedge funds. One SanDisk executive, Don Barnetson, is also in court on counts for insider trading. Kinnucan leaked the secret information about the iPhone’s sales between 2008 and 2010, and he would get the information by bribing suppliers. He is rumored to have earned $1.58 million for leaking Apple’s trade secrets.

Between 2008 and 2010, investigators said, Kinnucan paid insiders with cash, trips and other benefits to get secret information, including sales trends for Apple Inc’s iPhone. Kinnucan then funneled the information to hedge fund traders in California and New York in exchange for hundreds of thousands of dollars, investigators said.

Kinnucan’s arrest is part of a bigger crack down on insider trading within hedge funds. Over 60 people were already arrested during the operation, dubbed “Operation Perfect Hedge,” including a Flextronics executive for leaking iPhone sales numbers.


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