Wall Street Journal

A few reports have floated around today that we are filing under rumor. The first comes from a Digitimes report that claimed Apple suppliers are prepping for mass production of a new Retina iMac scheduled for July with a possible October unveiling. We told you in May that Retina iMacs were likely on the way when higher-resolution iMac display panels were spotted in Apple’s supply chain before the unveiling of the new Retina MacBook Pro at WWDC in June. Apple quietly updated the Mac Pro lineup after the event, and then it confirmed a redesigned Mac Pro was in the works for 2013, but we have heard nothing official from Apple on future iMacs.

We heard a lot about a possible 7-inch or 7.85-inch iPad, and today there are more roughly translated reports, coming from Chinese publication MyDrivers.com (via UnwiredView), that claim Apple has a 7.85-inch iPad using a Sharp IGZO panel. There have been several reports in recent months claiming Apple is working on the device, and the The Wall Street Journal reported in February that Apple was testing displays roughly 8-inches in size. Apple looks to be at least testing these screen sizes, but we have no solid proof that anything is planned as of yet. Previous reports indicated a possible October launch for a 7-inch iPad under $250.
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Another batch of newly granted Apple patents were published today by the U.S. Patent and Trademark Office, and then detailed by Patently Apple. Perhaps the most notable is one for an inductive charging solution that we have heard about in the past. Apple patents surfaced last year showing new methods of inductive charging that could be used in various Apple devices. There were even rumors last year that a next-gen iPhone could sport a similar cable-free charging solution. Patently Apple described the docking station invention covered in today’s patent that would include an “eradiating antenna and an inductive charging circuit for inductively charging a handheld device”:

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The Wall Street Journal reported that travel-recommendation website Orbitz discovered that those of us who own a Mac are spending as much as $20 to $30 more a night on hotel rooms than PC users on average. That is a whopping 30 percent difference, and the smart folks over at Orbitz are looking to take advantage by changing what listings they show Mac users.

According to the WSJ, Orbitz has a new platform that tracks its visitors habits to recommend a room to match their spending habits, which can be oh-so expensive for those who own a Mac. The company is currently experimenting with a platform that shows hotel rooms matching a Mac user’s spending taste a little better, but Orbitz executives stressed that it is not showing the same room to different people for a different price. For example, the WSJ found listings for a Baton Rouge hotel room were 13 percent more expensive on a search from a Mac compared to a PC. In essence, Mac users are shown the nicer rooms.

(Update: UK retailler Tescos is taking it one step further)

In a Forrester research note released last October, the firm noted that Mac users are falling into the “power laptop user” range, or people who work 45 hours a week on average and have a solid 44 percent more income. They put it: “Most of the Macs today are being freewheeled into the office by executives, top sales reps, and other workaholics.” I certainly think that stands true, because owning an Apple product is an expensive investment. The lowest priced Mac laptop costs $999, which certainly is not cheap and not something everyone can buy. Despite the high price, you are buying a quality product.

To be clear, Orbitz is not putting an “Apple Tax” on the price of hotels. It is just defaulting the higher-end stuff to Mac users, because Orbitz believes Mac users are more likely to choose higher-end hotels.

It is a risky strategy and may put some people off, however. Moreover, as Mac users, it is very easy to get smug about something like this. But does it make good business sense?

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In a recent story about growing concerns among app developers who want better ways to promote their apps in the App Store, The Wall Street Journal published quotes from an interview with Apple’s Vice President for Worldwide Marketing Phil Schiller about the “tremendous amount” of work Apple does to help new apps get discovered. Schiller also talked about how things will improve with the redesigned App Store, Facebook integration, and new user tracking tools for developers in iOS 6:

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Oh, Siri. Apple’s little voice-activated personal assistant in iOS can handle questions, give recommendations, and delegate requests, but does it really live up to expectations?

The folks in Cupertino like to roll out advertisements that show Siri capable of compiling individual preferences with personalized results, and even completing basic tasks like finding a nearby restaurant, but the software met very mixed reactions after it Beta-débuted on the iPhone 4S in October. Those who felt misled by Siri’s functionality depicted in commercials eventually sought reimbursement by filing a class action lawsuit against Apple earlier this year.

Fortune’s Adam Lashinsky wrote about how chief executive Tim Cook is changing Apple in an interesting piece this morning, but he also touched upon the contention surrounding Siri. He noted Apple’s future relies on the quality of its products, which holds true for any company, but then he pointed to the iOS-maker’s knowledge navigator:

“Those looking for deficiencies have found them in Siri, a less-than-perfect product that Apple released with the rare beta label in late 2011, a signal that the service shouldn’t be viewed as fully baked. Siri’s response time has been slow, meaning the servers and software powering it are inadequate. ‘People are embarrassed by Siri,’ says one former insider. ‘Steve would have lost his mind over Siri.'”

It is interesting that an unnamed insider claimed Jobs would “lose his mind” over Siri, especially because it is well-known the late CEO worked with former Siri founder and subsequent Apple Engineering Director Dag Kittlaus on the project. Kittlaus admitted last March at Network World that Jobs felt they “cracked it” in regards to Siri, which alludes to the chief’s satisfaction with the voice assistant and contrasts with the insider’s opinion.

The poll is after the break.

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Last week, we revealed Apple’s decision to drop Google Maps in iOS 6 in exchange for its own in-house solution branded simply as “Maps.” At the time, we told you many versions of iOS 6 have been floating around Apple’s campus, which indicated Apple is likely on track for a mid-June unveiling at this year’s World Wide Developers Conference. Shortly after, references to an upcoming iOS 6 beta were found in the code strings of the iCloud.com beta website.

One app developer informed us today that it has recently noticed users running iOS 6 using its app. The developer observed the “iOS6” string when collecting the OS version from analytics software. It has not been able to trace exactly when the iOS 6 users started appearing, but it was sometime over the past week. Other developers that we spoke to began seeing hits in late April. There is a good chance that this means Apple is amidst iOS 6 compatibility testing with higher-profile applications from the App Store. The process of next-generation versions of iOS appearing in developer usage logs occurred last year too.

Although Apple’s new Maps app and its 3D mode will likely be pushed as a major feature of iOS 6, we noted previously that anyone anticipating major home screen changes or Android-style widgets will likely be disappointed. Yesterday, The Wall Street Journal reported Apple was preparing to unveil an upgrade to iCloud at WWDC that would include new sharing and commenting features for photos, as well as video syncing capabilities that will likely be the Video Stream feature we told you about last year.

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According to a report from The Wall Street Journal, Apple is about to unveil an upgraded iCloud service at WWDC in June. Citing the usual sources “familiar with the matter,” the report also claimed the features would include new photo-sharing capabilities for sharing and commenting on sets of photos. It also mentioned the ability to sync video to iCloud, which sounds a lot like a Video Stream feature that we mentioned last year. Perhaps this is the reason Phil Schiller no longer needed Instagram?

The new features, expected to be announced at Apple’s world-wide developer conference beginning June 11, will allow iCloud users to share sets of photos with other iCloud users and to comment on them, these people said… Apple is trying to better compete in the red-hot market for photo sharing, dominated by fast-growing online services such as Facebook Inc. and mobile apps like Instagram—which Facebook has agreed to acquire for $1 billion.

We revealed last September that Apple was readying its Find My Friends network. At the time, we reported references to video streams that indicated Apple was likely considering a video syncing/stream feature similar to Photo Stream.

According to the report, Apple is “rolling out new features cautiously” as it worries about the cost of storing large amounts of data, but is also considering increasing the maximum number of photos and albums users can store:
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Following yesterday’s report from DigiTimes claiming Apple had a new 7-inch iPad in the works for August, iMore’s Rene Ritchie today claimed Apple is actually targeting an October release, alongside the next iPhone. He also claimed his unnamed source said the device will launch for $200 to $300 and pack-in a Retina display and specs almost identical to the current iPads:

Apple will be going forward with the 7-inch iPad, currently targeting an October 2012 release alongside the new iPhone, and — here’s the killer — at a $200 to $250 price point… Our source has indicated, however, that the 7-inch iPad will be identical to the current 9.7-inch iPad, just scaled down. That seems to include a 2048×1536 resolution display, just like the new iPad. If accurate, that would put the pixel density at around 326 ppi, the same as the iPhone 4S (and higher than the 264 ppi new iPad) retina display.

Ritchie noted his source is not sure of the exact dimensions, but past rumors indicated a 7.85-inch size could work. According to the report, one way Apple will meet the low price point is to offer the new 7-inch iPad with just 8GB of storage. We are taking this report for what it is until we have some solid proof, but we know iMore’s Ritchie has been accurate with several Apple product launches in the past, including the third-gen iPad and iPhone 4S.

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By now you probably know that the U.S. Department of Justice launched an antitrust lawsuit against Apple and two publishers this month following an investigation into Apple’s eBook pricing agency model. Three publishers, including Hachette, HarperCollins, and Simon & Schuster, decided to reach a settlement with the Department of Justice to return to Amazon’s set-your-own price wholesale model. Meanwhile, Apple, Macmillan, and Penguin will take the fight to court.

Interestingly, a report from The Wall Street Journal, which is owned by the HarperCollins’ parent company News Corp, suggested Apple was only ever trying to continue its App Store business model. The Wall Street Journal’s L. Gordon Crovitz described visiting Senior Apple Executive Eddy Cue to discuss changing Apple’s policies for publications. He quoted Cue as comparing book pricing to apps and not wanting to treat publications differently than app developers:

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In February, the story broke that Google and other advertising companies were bypassing iOS Safari’s privacy settings and continuing to track users without their consent. Google quickly disabled its code responsible for the tracking after a story from The Wall Street Journal published, and Apple then claimed it was “working to put a stop” to the issue.

Now, a new report from Mercury News claimed the U.S. Federal Trade Commission is considering whether to fine Google over the incident. The decision is expected in the next 30 days:

The Federal Trade Commission is deep into an investigation of Google’s actions in bypassing the default privacy settings of Apple’s (AAPL) Safari browser for Google users, according to sources familiar with ongoing negotiations between the company and the government… Within the next 30 days, the FTC could order the Mountain View search giant to pay an even larger fine in the Safari case than the penalty the Federal Communications Commission hit Google with Friday, say the sources, who spoke on condition of anonymity.

The report is referring to Google being recently fined $25,000 by the FCC after it allegedly “deliberately impeded and delayed” an investigation related to Street View cars. The heart of the Safari bypassing investigation is whether the company is violating a previous privacy agreement made with the FTC following controversy over the failed “Buzz” service. The report claimed Google could face up to $16,000 per violation per day for violating the agreement. Google said to Mercury News today it would “cooperate with any officials who have questions” and explained making its +1 compatible on mobile Safari created the issue:

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AllThingsD just announced Apple’s Chief Executive Officer Tim Cook would appear as the opening-night speaker at this year’s D10 conference. The 10th D: All Things Digital conference will be Cook’s first time speaking at the event, and AllThingsD noted this is his first-ever appearance onstage at a non-Apple event since becoming CEO last year. Past D conferences were notably a stage for many in-depth discussions and interviews with Steve Jobs. Jobs last appeared at the event at D8 in 2010.

Walt Mossberg and I could not be more thrilled to announce that Tim Cook, CEO of Apple, will be the opening-night speaker at our 10th D: All Things Digital conference.

The D10 conference is slated for May 29 to May 31, 2012 at the Terranea Resort in Rancho Palos Verdes, Calif.

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We knew the Fair Labor Association would publish the initial findings of its investigation into Apple’s Foxconn facilities, and now the report is officially available through the organization’s website. The full report released today and is here. The press release outlining the investigation is below. According to the recommendations, Foxconn committed to “bring its factories into full compliance with Chinese legal limits and FLA standards on working hours by July 2013.”

The last we heard from the FLA about its audits into Apple’s Foxconn facilities was that it found “tons of issues.” Apple became the first technology company accepted as a member into the organization after controversies surrounding working conditions in Apple’s supply chains abroad became mainstream. As for what the FLA found in its audits of the three Foxconn facilities, here is an excerpt from the report:

FLA’s investigation found that within the last 12 months, all three factories exceeded both the FLA Code standard of 60 hours per week (regular plus overtime) and the Chinese legal limits of 40 hours per week and 36 hours maximum overtime per month. During peak production periods, the average number of hours worked per week exceeded 60 hours per worker. There were periods in which some employees worked more than seven days in a row without the required 24 hours off.

The FLA said Foxconn’s commitment will “reduce working hours to legal limits while protecting pay, improve health and safety conditions, establish a genuine voice for workers, and will monitor on an ongoing basis to verify compliance.” This will lead to a maximum 49-hour workweek, including overtime for employees and a decrease in monthly overtime from 80 hours to 36 hours. While we reported some workers were unhappy with working fewer hours, Foxconn also committed to a compensation package for workers with reduced overtime:

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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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