Tech Industry

According to SAI and Asymco’s tweets (follow!) this morning, Tim Cook in an interview with Bernstein analyst Toni Sacconaghi had some enlightening information on how Apple sees the future of the iPhone.

• Apple CFO Peter Oppenheimer said Apple would not let carriers dictate terms, which Sacconaghi says reinforces, “the notion that Apple might be willing to act to disintermediate carriers with a soft-SIM.”
• 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.” Cook noted that Apple executives – including himself – had spent “huge energy” in China, noting that it is “a classic prepaid 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.

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A 9to5mac reader writes in telling us he/she’s found some interesting files in Lion.  These files are labeled “MobileDocumentsFolder.icns, Mobile Documents 32.png and SidebarMobileDocumentsFolder.icns” and show new types of icons for a Cloud file system.  Clearly, this would seem to be the successor to iDisk and is probably shows a more transparent interface between the desktop and the Cloud, perhaps a little more like Dropbox. We’re also thinking there is an iWork.com component as well since these are “documentsFolders”.

– here’s the new sidebar icon.

We’re expecting to hear more about the future of MobileMe at the iPad 2 announcement next week.  Hope this tides you over until then.
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The Wall St. Journal talked to Verizon CEO Daniel Meade about the iPhone launch and the lack of lines. He said 60% of sales were online and staggered and that the lack of lines were planned. Apple was just being cautious by having all hands at the Apple Store early as well. Regardless, Verizon isn’t announcing numbers until their earnings release.

More importantly, he talked of 4G.

Mr. Mead also said he expects Apple to offer mobile devices on the carrier’s 4G technology, although he declined to specify the nature of those products or when they would be released. Verizon’s fast fourth-generation wireless network, which it recently launched, runs on a technology known as Long-Term Evolution, or LTE.

“You’ll see more coming from Apple on LTE,” he said. “They understand the value proposition of LTE and I feel very confident that they are going to be a part of it.”

Here’s what’s interesting: We saw three different types of iPad 2 in the SDK: K93, K94 and K95.  Initially we thought: One GSM, One CDMA and one Wifi.  However, since then we discovered that the Verizon iPhone and likely the iPad 2 use a Qualcomm GOBI chipset that allows both CDMA and GSM connectivity. We also know someone at Apple is working on LTE right now.

That leaves another class of iPad.  Could that mean 4G?
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TRIM? Oui!

Another Lion discovery making the rounds today is its support of TRIM on SSDs. In short, TRIM allows the machine to write faster to the SSD.

TRIM was introduced soon after SSDs started to become an affordable alternative for traditional hard disks as permanent storage in PCs. Because low-level operation of SSDs differs significantly from traditional hard disks, the typical way in which operating systems handle operations like deletes and formats (not explicitly communicating the involved sectors/pages to the underlying storage medium) resulted in unanticipated progressive performance degradation of write operations on SSDs. TRIM enables the SSD to handle garbage collection overhead, that would otherwise significantly slow down future write operations to the involved blocks, in advance.

Here’s an example:

http://c.brightcove.com/services/viewer/federated_f9?isVid=1

Consumer Reports is almost  comical at this point.  They say the Verizon iPhone has the same issue as the GSM version but since Verizon’s network is better, people don’t notice the degradation.

We subjected the Verizon iPhone 4 to a full complement of regular tests in order to add it to our smart-phone Ratings, available to subscribers. We also put it through the special tests we carried out last year on the AT&T iPhone 4 after a rash of consumer complaints about signal reception with that model. There has been no such outpouring of complaints about the Verizon version of the phone.

In addition, to provide a comparison to some alternative models available from Verizon, we also tested five other Verizon smart phones that we rate highly: the Samsung Fascinate; Motorola Droid 2 Global; HTC Droid Incredible; LG Ally; and Motorola Droid X.

Oh, boy.  Any non-Androids?  How about BlackBerry or Palm…or a Kin?

The special tests were all carried out in the controlled environment of CU’s radio-frequency isolation chamber at our National Research and Testing Center in Yonkers, NY. In this room, which blocks interference from outside signals, our test engineers mounted each phone on a stand and established a continuous signal connection to our base-station emulator, a device that simulates the signals phones receive in the field. We then placed a finger to each phone in a range of locations around its edge, and monitored any changes to the phone’s performance at each position.

The only phones in which the finger contact caused any meaningful decline in performance was the iPhone 4, the sides of which comprise a metal band broken by several thin gaps. As with our tests of the AT&T iPhone 4, putting a finger across one particular gap—the one on the lower left side—caused performance to decline. Bridging this gap is easy to do inadvertently, especially when the phone is in your palm, which might readily and continuously cover the gap during a call.

Bottom line, they can’t recommend it even though it is their highest rated smartphone on the highest rated network.

Apple’s iTunes ecosystem has another strong competitor today with the launch of Amazon’s Prime Streaming service.

The new offering starts with a 5000 movie and TV show catalog and is offered for free to its Prime customers who currently receive the unrelated free shipping on products.  Prime membership is $80 a year but starts with a month free.

An initial viewing of the library looks pretty weak, but this type of service could catch on pretty quickly.  Especially since Amazon video players start at around just $60.
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Reuters  reports that a group of Wintek employees that were poisoned during the manufacture of Apple products by the N-Hexane cleaners that their company used are making a direct appeal to Apple CEO Steve Jobs.

“From when hexyl hydride was used, monthly profits at Apple and Wintek have gone up by tens of millions every month, the accumulated outcome of workers’ lives and health,” said the letter, signed by five workers claiming to represent employees.

Wintek said it had used the chemical, which evaporates faster than alcohol, to speed up production of touch screens for Apple products. It has since gone back to using alcohol.

Apple noted that Wintek had used the chemical in its yearly Supplier Responsibility Progress Report and the company had discontinued its use.  Apple declined to comment on the workers’ letter and referred a reporter back to its supplier report.

It wasn’t immediately clear what the workers were after.  The note, addressed to Apple’s CEO is pasted below:
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CNN is reporting that Apple is in discussions with the labels to offer higher quality recordings at perhaps a premium pricing in the near future (September-ish?). Music is currently distributed in 16-bit files through CDs and are further compressed when made into MP3s (unless lossless compressors are used).

Professional music producers generally capture studio recordings in a 24-bit, high-fidelity audio format. Before the originals, or “masters” in industry parlance, are pressed onto CDs or distributed to digital sellers like Apple’s iTunes, they’re downgraded to 16-bit files.

It appears that such a change would be a wholesale move for the whole industry.

“We’ve gone back now at Universal, and we’re changing our pipes to 24 bit. And Apple has been great,” Iovine said. “We’re working with them and other digital services — download services — to change to 24 bit. And some of their electronic devices are going to be changed as well. So we have a long road ahead of us.”

This might be Apple’s response/differentiator to the subscription model where Spotify, Sony and others (maybe even Apple and Google soon) are finding success.  While Macs can play the new high quality 24-bit recordings, apparantly iPhones and iPods (and AppleTV/iPads?) currently aren’t built to do so.

To make the jump to higher-quality music attractive for Apple, the Cupertino, California, company would have to retool future versions of iPods and iPhones so they can play higher-quality files.

What does the extra 24-bit sound buy you?
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Not the Apple TV, but an Apple television. Apple has posted a new job position looking for people to work on next-generation power supply technology. Apple needs people to to “work on the forefront of new power management designs and technologies with the exemplary company consistently bringing innovations in the industry.” Although some mind find that fascinating, we find what Apple needs this new power management technology to power even more interesting… TVs!

Apple separates “TV” from “standalone displays” making it clear these are actual televisions, not Apple’s regular LED displays. Apple does have a television accessory called Apple TV and the job posting does not note this being that product. We are certainty speculating a little bit here, but we do feel this is very interesting either way. Over the years a number of reports emerged Apple was working on an actual TV, including reports from analyst Gene Munster in 2009 and a few weeks ago.

Also, this could tie in nicely with our report about Apple exploring OLED displays.

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Well, you have to give the judges at the Mobile World Congress some credit.  In an entirely Android dominated event, they were willing to look off the board when deciding what device should win the “Best Mobile Device”.  Even though Apple didn’t show up, the iPhone won the award handily.

The Judges’ comments included, “Great screen, sharp design, fantastic materials, and phenomenal ecosystem for app developers. In a tight race, the iPhone 4 built on the success of its predecessors to set the pace for smart phones.”
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Times change.  In the past three and a half years, AT&T CEO Randall Stephenson had nothing but kind words for Apple and its ecosystem.  However at MWC this week, he took aim at Apple’s App Store.

“You purchase an app for one operating system, and if you want it on another device or platform, you have to buy it again,” he said. “That’s not how our customers expect to experience this environment.”

Clearly.  That’s why all of AT&T’s App Store apps are coded in HTML5 so I can open them on my Verizon iPhone and Wifi iPad.  UVerse is awesome that way.

Instead, he’s pushing the aptly named WAC or Wholesale Applications Community, which is a platform that acts as one app store. The apps are then sold by a variety of different phone companies around the world, in stores that carry their own brands.

WAC is endorsed by AT&T, Verizon Wireless, Sprint Nextel Corp., T-Mobile USA, Boise St. and Hawaii.
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If you include iPads as PCs (and why wouldn’t you?) Apple surpassed HP last quarter to become the number one mobile PC vendor in the world with a 17% share or 10.2 million units, according to DisplaySearch.  HP, the reigning champion, shipped 9.3 mobile  PCs for a 15.6% share of the market in Q4 2010.

With iPad sales expected to grow with the launch of the iPad 2 as well as MacBooks continuing to out-gain the PC space quarter after quarter

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http://online.wsj.com/media/swf/VideoMicroPlayer.swf

The WSJ asks around about the new publisher requirements that Apple is enforcing on June 30th.  The move will require content  publishers like Netflix, Amazon, Rhapsody, Hulu and others to make content available through in-store purchases.  Of course all in-app purchases are subject to pay 30% of their revenues gained through the store to Apple.

“My inclination is to be suspect” about Apple’s new service, said Shubha Ghosh, an antitrust professor at the University of Wisconsin Law School. Two key questions in Mr. Ghosh’s mind: Whether Apple owns enough of a dominant position in the market to keep competitors out, and whether it is exerting “anticompetitive pressures on price.”

Clearly, companies like Amazon who already have some thin margins aren’t set up to do this.  In fact, Rhapsody already has a public beef on the matter.

” Millions will be spent litigating how broad the market is,” said Herbert Hovenkamp, an antitrust professor at the University of Iowa College of Law.

Mr. Hovenkamp said digital media is the most plausible market. He said he doubted that Apple, currently, has a sufficiently dominant position in that market to warrant antitrust scrutiny.

But, he said, if Apple gets to a point where it is selling 60% or more of all digital subscriptions through its App Store, “then you might move into territory where an antitrust challenge would seem feasible.”

What do you guys think?  Should Apple be able to take 30% of sales made through the store?

What if it means losing Netflix, Amazon and all other booksellers?
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MacTrast claims that Apple is set to unveil major upgrades to their MacBook Pro line of notebooks including better displays, better battery life, and updated designs. First the report claims that the entire line will become 15-20% lighter due to a new “stronger, lighter, and more scratch resistant” aluminum material. The new laptops are said to be made through a new build process also that is “similar to injection molding.”

Next, the report’s sources claim that the new MacBook Pros will pack a new battery technology that allows for 20% more battery life all around. They say the new 13 inch will have 12 hours of battery life, 15 inch will have 11 hours of battery life, and the 17 inch will also feature 11 hours of wireless productivity. As for the weight, the report claims the 13 inch will go from the current 4.5 pounds to 3.7 pounds (close to the 13 inch MacBook Air), the 15 inch will drop from 5.8 to 4.6, and the 17 inch will drop from 6.6 to 5.3 pounds.

Next, the report claims that the 13 inch model will have a built-to-order option to allow for a matte display, and a better display at 1440 x 900 resolution will also be an option. The report claims that the 13 inch model will keep the slot loading disc drive in its current location, but they claim the CD drive will be an option on the 15 inch model. Users could choose to use the space for SATA storage or an extra hard drive. They also claim the 15 inch will get a third USB port.

They claim the 17 inch will get a new expansion slot in addition to a new graphics card option. Now pricing.

Base pricing is said to be as follows: $1099 starting for the 13″ MacBook Pro, $1549 for the 15″ MacBook Pro, and $2099 for the 17″ MacBook Pro, with Apple clearly being quite aggressive here on those price points.

Just a note: We find these claims to be pretty extreme/out of the ordinary ($1549 for a Mac?) so we’d recommend not putting any confidence in the report just yet. However, MacTrast has 170K twitter followers…

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Although the last few days have been packed with rumors pointing to a smaller iPhone with a smaller display, Digitimes is now reporting that Apple’s fifth-generation iPhone, due in June, will pack a 4-inch display to go toe-to-toe with Android device’s larger displays. This information is said to come directly from Apple’s production lines.

Earlier today another rumor claimed that Apple is working on three prototypes for their next generation iPhone with one of them including a physical, slide out keyboard and the other being mostly an internal upgrade with a speedier chip and an eight-megapixel camera.

Digitimes is also reporting that Apple is planning to launch an iPad 2 with an “enhanced A4” processor, with no explanation as to what that means and a fifth generation iPhone with the rumored A5 processor. No word on the differences between the two chips or if the iPhone 5 will feature a faster chip than the iPad 2. At this point it looks like Apple’s next major handset is starting to take shape.

We are probably looking at a fairly major internal upgrade with a faster chip, perhaps more storage (cloud based?), a dual GSM/CDMA antenna, and probably more RAM. As for externals, Apple’s iPhone 4 was a major redesign so perhaps the exterior design will simply see a new display: A 4-inch Retina display with Super PLS technology?

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I’m calling it now.  If Apple continues to grow like it has (and maybe accelerates growth with a low cost iPhone and CDMA), it will produce the kind of numbers that will topple Nokia in the second half of 2011.

Apple’s iPhone product releases generally happen at the end of the second quarter but the majority of product refreshers will be taking delivery in the third quarter.  The pent up demand and new carrier options in the US (and abroad) will allow Apple to continue grow its market share significantly.

Nokia will be lucky to stay flat:

Meanwhile, Nokia’s platform refresh will see it stagnate until it can begin selling WP7 devices.  Low-end Android devices from LG, Samsung, Motorola, Sony Ericsson, Acer,  Huawei and others will also eat into Nokia’s share throughout 2011.

Nokia’s prospects for 2011 can’t be good.  You don’t throw your company at Microsoft because your channel inventory checks look solid.  It is hard to imagine significant demand for Symbian phone in 2011.  Even their CEO has said their current product is substandard.  It is hard to imagine any growth at Nokia until WP7 hits (and even then it will be new/unproven).

IDC’s numbers for the most recent quarter are:

Top Five Smartphone Vendors, Shipments, and Market Share, Q4 2010 (Units in Millions)

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Bob Dylan in Apple’s Think different campaign

In an interview with TheAge Sony executive Michael Ephraim hinted that Sony may pull its iTunes music content from Apple’s store over a fallout with the company. At the end of January Apple rejected the Sony ebook reader application from the iOS App Store leading to this fallout between companies.

Sony is planning to launch a new music service called ‘Music Unlimited’ that will stream a library of over 6 million tracks to many devices including Sony TVs, Playstations, and Blu-Ray players. Ephraim said Sony’s new approach to the online music service is more open than Apple’s because it can be streamed directly to multiple devices and won’t have to be synced via a cable through a computer-application (iTunes).

Sony removing their music content from iTunes would be a big deal as Sony’s library includes popular artists like Bob Dylan (Steve’s favorite), Beyonce, and Guy Sebastian. The big hints also come through these quotes from the Sony executive:

If we do [get mass take up] then does Sony Music need to provide content to iTunes?” Mr Ephraim asked. ”Currently we do. We have to provide it to iTunes as that’s the format right now.

”Publishers are being held to ransom by Apple and they are looking for other delivery systems, and we are waiting to see what the next three to five years will hold.

Apple is expected to open up their own online music streaming service‘ soon with help from their new, powerful data center in North Carolina. Apple purchased music streaming company Lala back in late 2009, and many have speculated that Apple would use the new resources from the purchase to build their own streaming service.

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If you are like me and want to try to figure out what all the excitement is about, check the video below.

[youtube=http://www.youtube.com/watch?v=VnjwG7Z8AM8&w=640&h=390]
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Heck, let’s start talking about iPad 5 and iPhone 7.

Daring Fireball made mention of an iPad 3 due in the Fall in a post this afternoon.  No details just a date and a season.  TechCrunch’s MG Sigler quickly jumped on it saying they had heard something coming in the fall too.  Keep in mind that there are zero details, just phantom dates on a calendar.

Well, until today. We’ve now heard that this “fall surprise” is related to this would-be iPad 3. We don’t have any more concrete information beyond that. But, as of right now, the plan is apparently to release one iteration of the iPad in the next few weeks. And then blow the doors open with another new version in the fall.

Just over a year ago Siegler reported that Apple was readying a iMac Tablet “More Like A Mac Than An iPhone.”  Maybe that’s it – though Steve Jobs at the Lion event said they wouldn’t build such a machine.

If anything, this Fall “iPad 3” is likely a bigger iPod touch with some extra sauce.

But let’s play the guessing game.  If there is anything that Apple would like to squeeze into its iPad it would be ahigher rez screen (WSJ mentioned that they weren’t able to make the cutoff).  Remember “retina” on a tablet is different than “retina” on a phone.  Also, iPad camera specs seem to be coming in below the Droids.

But let’s not get ahead of ourselves with a whole lot of nothing.

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I’ve liked the webOS since day one, but watching the liveblogs (Engadget’s in this case), we’re pretty hard-pressed to find any real innovation here.

Let’s start:

This is what HP has invented:

Not bad in the history of technology.  What have you done for us lately?  Oh, you had to buy Palm.

Moving on:

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I know Steve Jobs doesn’t like Flash, so I’m just saying this matter-of-factly.  Flash 10.2 is a screamer!  We’ve been beta testing it since it was first released but now that Flash 10.2 is final, it’s on the MacBook Air that I use from day to day.  Opening a full screen 1080P YouTube on a MacBook Air used to cripple the whole machine.  Not anymore.

Now, we are seeing 10-15% of one CPU usage.  That’s about the same as playing a similar-sized MP4 in Quicktime.  That means Flash is offloading a lot of the heavy lifting to the Air’s GPU (they’ve said as much in their Flash 10.2 release notes).

Transformers 1080P reference video played on MacBook Air 1.8GHz

About F(lash)ing time. (download here)

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