Tech Industry

According to a report from Reuters, Apple’s LTE chip supplier Qualcomm is having “trouble meeting demand” for smartphone chips and will continue experiencing manufacturing constraints throughout the rest of the year. Qualcomm Chief Executive Paul Jacobs told analysts on a conference call yesterday, “At this stage we cannot secure enough supply to meet the increasing demand we are experiencing.”

With Apple’s next-generation iPhone expected to include LTE capabilities like the recently launched third-gen iPad, many are speculating Qualcomm’s supply issues could lead to delays. It would also make the rumored September or October unveiling and holiday launch all the more likely opposed to June. Is it possible Qualcomm’s supply constraints have anything to do with Apple buying up its capacity?

Apple recently began internally seeding prototype N96— a faster iPhone with 1GB of RAM and an A5X variant to test the performance of the new chip on iPhones.

Qualcomm’s Chief Financial Officer Bill Keitel told Reuters the constraints have lead to increased operating expenses:
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With court moderated settlement talks between Apple and Samsung executives set to take place within the next 90 days, Samsung has now filed a counterclaim in a California federal court alleging Apple’s iOS devices are infringing eight patents. The counterclaim is part of an original patent infringement lawsuit initiated by Apple in February. Foss Patents reported:

It comes as no surprise that Samsung retaliated with infringement claims. Samsung owns roughly 30,000 U.S. patents. It has from the outset of its dispute with Apple demonstrated its belief that a good offense is the best defense. So far, none of Samsung’s infringement claims against Apple has succeeded anywhere on Earth, despite efforts in nine different countries, but Samsung keeps on fighting.

Apple is also in the middle of patent infringement cases with HTC, which just told a court in London that its touchscreen devices, specifically its “slide-to-unlock” functionality, do not infringe on Apple’s patents. Bloomberg reported today that HTC’s lawyers described the functionality in question as “extremely simple implementations of commonly known techniques.” Apple’s lawyer Simon Thorley argued HTC is “attacking the validity of four patents” and claimed, “It is clear the inventions make the requisite contributions.”

If HTC is successful, it could have an impact in ongoing patent infringement related cases with Apple in Dutch and German courts. The report described the functionality Apple claims is covered in the patents:

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Verizon announced its earnings today coupled with some interesting new information. Verizon’s Chief Financial Officer Andrew Davies told investors that a data-sharing plan would be available this summer. Family Data sharing has been in the cards for a while, but this is another indication of an imminent launch.

[tweet https://twitter.com/cnetnews/status/192973543716290561]

During the call, Verizon announced that it activated an additional 3.2 million iPhones for the quarter, which is 1.1 million units down (or 24 percent) from the blowout Holiday quarter when the carrier activated 4.3 million iPhones.

Verizon activated 6.3 million smartphones overall, and 9.1-percent of those were on LTE. Data revenues were $6.6 billion, which is up $1.1 billion (or 21.1-percent) year-over-year and represents 42.9-percent of all service revenues. Total revenues were $18.3 billion, up 8.2-percent year-over-year.

Verizon is now at 47 percent smartphones overall. It is near the tipping point where smartphone customers outnumber dumbphone counterparts.

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Although Nokia may or may not be having some success in the United States with its heavy Lumia 900 marketing campaign under AT&T, it does not appear to have made any headway on its home turf in Europe. AT&T will give you $50 to take one of its Lumia 900 phones in the United States, but it has already fallen off the Best Selling list at Amazon.

Yesterday, the credit rating agency Moody’s downgraded Nokia’s debt to near junk level citing a “sharp decline in first-quarter cell phone sales that led to a 35 percent fall in revenue.” Standard & Poor’s announced a similar downgrade in March. Nokia’s share prices plunged another 20 percent in recent days on news that it would not come close to its forecasts.

Things do not seem to be looking up, either. Reuters talked to four European carriers that said Nokia phones simply could not compete with Apple’s iPhone and the Android devices already available.

“No one comes into the store and asks for a Windows phone,” said an executive in charge of mobile devices at a European operator, which has sold the Lumia 800 and 710 since December

When the Nokia 900 launched, we asked: “What question does the Lumia 900 answer? Why would you buy a Lumia over an iPhone or Android device?”
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In an interview with the Guardian over the weekend, Google cofounder Sergey Brin said:

[…]he was most concerned by the efforts of countries such as China, Saudi Arabia and Iran to censor and restrict use of the internet, but warned that the rise of Facebook and Apple, which have their own proprietary platforms and control access to their users, risked stifling innovation and balkanizing the web.” There’s a lot to be lost,” he said. “For example, all the information in apps – that data is not crawlable by web crawlers. You can’t search it.”

It is interesting that “lost” is defined above as “not crawlable by Google’s search engine.” Framing the argument—as “what is in the best interests of users” versus what Google wants—would probably have helped his case. We are supposed to think that it is just a coincidence the two biggest corporate threats to Google are also the two biggest threats to humanity/the Internet. (via Slashdot)

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Today, we have two pieces of Intel-related news with reports claiming a solid April 23 launch date for the Ivy Bridge introduction, while others report Intel has begun shipping its next-generation Thunderbolt technology.

Late last month, we heard reports from CPU World, which claimed Ivy Bridge CPUs most-likely to land in future Macs would launch between April 22 and April 28 with availability by April 29. Today, we get a solid launch date with Cnet and various other sources reporting Intel will start its initial rollout April 23. As we detailed previously, many of the Ivy Bridge models included in the initial launch would be suitable for MacBook Pro-like devices and desktop offerings. However, Intel’s Ultra low-voltage U-Series Ivy Bridge processors most likely headed for MacBook Air-like designs are expected to launch in June.

Intel today said there would be over 100 Thunderbolt devices by year-end and another report coming from VR-Zone today claimed Intel started shipping its second-generation Thunderbolt controllers codenamed “Cactus Ridge,” which would align nicely if both these updates are headed to future Macs…

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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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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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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.

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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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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This is the new Lenovo IdeaPad U310 (and U410) as it appears in the Federal Communication Commission database. I always wonder if Lenovo during its design meetings pretends like it came up with this look, or if the boss just says, “Make me something that looks exactly like this MacBook Pro.”

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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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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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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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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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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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