iSteve

YESTERDAY

What news awaits the Apple faithful?
Speculation centers on redesigned iPods, expanded content offerings on iTunes

Just two months after the release of the iPhone, which Steve Jobs proclaimed was the best iPod ever, Apple is expected to reveal Wednesday how it plans to move the iPod line forward. The company has summoned reporters and analysts to San Francisco's Moscone Center for an event, the invitations for which feature an image from Apple's iPod advertising. The event has generated a great deal of interest among Apple devotees, especially after the successful introduction of the iPhone. The timing is also good for Apple, which hasn't overhauled the standard iPod or the iPod Nano in almost two years.

TODAY

Apple to upgrade iPod line, nano gets video
SAN FRANCISCO (Reuters) - Apple Inc Chief Executive Steve Jobs unveiled new iPod models on Wednesday including an iPod nano, which stores songs and photos on flash memory chips instead of a hard drive, that now will play video and games.

Apple unveils new iPods, ringtones, Wi-Fi iTunes store

(09-05) 12:21 PDT SAN FRANCISCO -- Apple CEO Steve Jobs delivered a bounty of music news Wednesday, introducing a new multi-touch iPod similar to the iPhone, slashing the price of the iPhone by $200 and announcing a new Wi-Fi iTunes music store that allows users to download music at various locations, including Starbucks stores.

The iPod Nano also got a major face lift, with a 2-inch screen for the first time on a wider body. The Nano will now be able to play video on a super bright screen with 320 x 240 resolution. The Nano features a new user interface that includes a pane on the right that shows cover art and preview pictures that slowly float around. A 4GB Nano will sell for $149, while an 8GB version will sell for $199.

New Apple iPod Nano Has 2.5-Inch ScreenSAN FRANCISCO (AP) - Apple Inc. CEO Steve Jobs unveiled new versions of the company's market-leading iPod media player Wednesday, including an iPod Nano with a 2.5-inch screen for watching movies and playing games.

"It's incredibly tiny. It's incredibly thin," Jobs said of the new Nano, which features a 320-by-240-pixel screen.

The new Nano, which will be in stores starting this weekend, will come in two models: a 4-gigabyte version for $149, and an 8-gigabyte version for $199.

Apple also announced it will be selling ring tones for its iPhone for 99 cents, plus the 99-cent cost of the song. Ring tones from more than 500,000 songs available on iTunes will go on sale next week.

MORE APPLE ROUND UP

Apple Cancels NBC Fall TV Lineup On iTunes

The rift was based on a doubling of the wholesale price Apple pays for each NBC TV episode.

The rift, which encompasses all NBCU news, sports and entertainment

programming, means Apple may no longer offer the network's videos on the online store after the current contract expires in December. Apple said it decided not to offer the network's new shows in September, in order to avoid disappointing iTunes customers by having to pull the shows mid-season.

"We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase," Eddy Cue, Apple's vice president of iTunes, said in a statement. "We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers."

The dramatic increase was a doubling of the wholesale price Apple pays for each NBC TV episode. That would have resulted in iTunes customers paying $4.99 per episode instead of the current $1.99. Agreeing to such an increase would have placed Apple in an awkward position with ABC, CBS, Fox, The CW, and more than 50 cable networks that have agreed to sell their TV shows from the upcoming season at the lower price.

Apple is sure to feel the loss of NBC Universal, which provided three of iTunes' 10 best selling TV shows last season, according to Apple. Those shows accounted for 30% of iTunes' TV show sales. The New York Times, which was the first to report the NBCU-Apple troubles, said NBC Universal, which is part of General Electric, accounts for 40% of digital video downloads on the Apple online store. Among NBCU's popular shows on iTunes is "Battlestar Galactica," "Heroes," and "The Office."

NBC is not the first major iTunes supplier to bang heads with Apple over pricing. Universal Music Group, owned by Vivendi, refused to renew its contract with Apple in July, saying it would sell music on iTunes at will. This gives Universal the option of removing songs from the store on short notice.

Eric Zeeman Reports: iPhone Impresses Europeans. Almost.

Not all of them, obviously, but during my tip to London this week anyone within sight of my iPhone sidled up next to me quickly for a demonstration of how it worked. There were lots of oohs and aahs, quickly followed by bahs.

Quite honestly, I was trying to be as secretive with it as possible. I didn't want to create a mob scene or anything. But people are eagle-eyed, and anytime I retrieved it from my pocket, someone was quick to notice and ask what it was. Many thought it was the LG Prada at first. When I told them it was an iPhone, they nearly all asked to take a look. I obliged.

me. The E61i has a 2100 MHz WCDMA radio in it, and I was able to browse at blazing fast 3G speeds over the Vodafone network. The difference was striking.

So to return to a point I brought up several months ago, will Apple really sell that many iPhones in Europe when there are so many faster handsets available?

I guess we'll find out soon enough, as it appears Apple and several European carriers are set to announce its availability.

Mitch Wagner Reports: Letting Crazy People Set Intellectual-Property Policy

• The New York Times reported that NBC will not renew its distribution agreement with iTunes when it comes due in December. Among the terms NBC wants: Tougher digital rights management -- this despite the fact that it's been demonstrated, over and over again, that DRM doesn't work, can't be made to work, and any beliefs to the contrary are simply delusional.

• InformationWeek contributor Cory Doctorow describes how the Science Fiction and Fantasy Writers of America (SFWA) sent a broad takedown notice to scribd, a text-filesharing site, demanding that scribd remove a huge number of files. The problem, says Cory, is that the takedown notice is simply wrong. It includes works that are in the public domain, works that are licensed under Creative Commons, recommended reading lists, the back issues of a magazine, Ray Gun Revival, posted to scribd by the magazine's publishers -- and Doctorow's own novel, Down and Out in the Magic Kingdom, which Doctorow released under Creative Commons. SFWA appears to be behaving like a vigilante who, in the name of stopping violent crime, shoots up a whole subway car. Doctorow notes that, by misrepresenting itself as an authorized agent of copyright holders, SFWA has exposed itself to enormous legal liability.

• Viacom sent a takedown notice to North Carolina school board candidate Christopher Knight for posting a copy of a Viacom-owned VH1 clip to YouTube. The VH1 clip was a commentary on a TV commercial Knight created to support his political candidacy. Viacom is claiming that Knight pirated the VH1 clip -- when in fact, says Knight, Viacom are the pirates here; they used Knight's original political commercial without his permission.

When are we going to put greedy children like NBC, SFWA, and Viacom down for nap-time, and let grownups start writing intellectual property policy?

Unfortunately, Congress does not care about good legislation. They want nice sounding titles on the bills they pass. They want everyone to think them noble and responsible for the titles. They also want the money from donations that follow the legislation, that they didn't read, which screws the competition and rewards those who pay the lobbyists (yes, NGO's, Public Interest Groups, as well as the Evil Businessmen )

The reason so much money is in politics is because Congress rewards or punishes those who don't pay up. Corruption always raises prices...

iPhone Round-Up

"A man always has two reasons for what he does--a good one and the real one."

John Pierpont Morgan

That seems a wise statement worth remembering... in all times not just these.

It's been almost two months since the unveiling of the Next Great Thing.... Lots of words have been written. Here are a few bits you may have missed....

Businessweek Why Apple Can't Stop iPhone Hackers

AT&T and Apple may face an uphill battle prosecuting hackers who untether the iPhone from the AT&T wireless network.

Apple (AAPL) and AT&T (T), the sole authorized supplier of the iPhone in the U.S., are doing what they can to make sure that legal clearance never comes. The two companies have put their lawyers on the case, applying pressure on hackers involved in unlocking iPhones to try to get them to stop. Much is at stake. AT&T has been hoping that as the exclusive provider of the iPhone, it will see a surge in new customers and monthly service charges of at least $60 from each one. Apple is supposed to get a cut of the revenues. If iPhones are unlocked, they can be used on the wireless networks of rivals like T-Mobile USA—and AT&T gets zippo. AT&T wouldn't comment for this story, while Apple didn't return a request for comment.

Fuzzy Laws

So will Apple and AT&T's legal action deter hackers? Hardly. Individual users are already allowed to unlock their own phones under an exemption to the Digital Millennium Copyright Act (DMCA) that the U.S. Copyright Office issued last November. The exemption, in force for three years, applies to "computer programs…that enable wireless telephone handsets to connect to a wireless telephone communication network, when circumvention is accomplished for the sole purpose of lawfully connecting to a wireless telephone communication network."

What's less clear is whether companies and hackers can legally unlock the phones and then sell them to others, or sell unlocking software. "The law here is unclear," says Jonathan Kramer, founder of Kramer Telecom Law Firm in Los Angeles. "There just isn't any case law in this area for us to figure out how it plays out."

Experts believe that AT&T and Apple will point to the DMCA's section 1201, stating that "no person shall circumvent a technological measure that effectively controls access to a work protected under this title." They will claim that a phone lock is just such a technological measure that protects copyrighted work: namely, cell-phone software.

Frustration over locked iPhones is showing up in the courts as well. A class-action lawsuit filed on Aug. 27 in the Supreme Court of the State of New York tells of an iPhone buyer who racked up $2,000 in charges because he couldn't use a different carrier's network while he was on a trip to Mexico. Filed against Apple, the suit claims the plaintiff didn't know that iPhone was tethered to the AT&T network.

Many hope that the legal wrangling will, eventually, result in major shifts in how the U.S. wireless industry operates. For one, a case could pave the way to making all wireless networks more open to unlocked phones. In the next five years, 10% to 15% of U.S. wireless users could move to unlocked phones, figures Andrei Jezierski, founder of venture consultancy i2 Partners in New York (see BusinessWeek.com, 12/4/06, "Motorola, Nokia Set Cell Phones Free").

WSJ- Catering to Couch Potatoes at the Ballpark
To grab the attention of multi-tasking, gadget-addled Americans, sports teams are rolling out devices that allow ticketholders to watch live action or play trivia. But some diehard baseball fans struggle to understand the appeal.

GIZMODO -iPhone Gets Hebrew Support

Yes, this post is about the iPhone but don't worry, it's not about yet another unlocking so put down those stones slowly. This morning's false alarm by a Israeli newspaper only had one nugget of truth: The hackers were able to enable Hebrew support, but not on the interface, just on Safari and Mail. You can check the screenshots after the jump

Apple Demands High Price From European Carriers To Offer iPhone

Apple is said to be asking for 10% of the revenue from iPhone voice and data usage in Europe, a deal that would make other handset providers green with envy. By W. David Gardner InformationWeek August 24, 2007

Investment analysts have estimated that Apple cleans up financially with its exclusive contract with AT&T, reportedly making $3 a month for each iPhone subscriber and $8 for each new subscriber, according to analyst estimates. Apple may do even better than that with the European cellular networks that are negotiating to offer its iPhone.

Apple CEO Steve Jobs is keeping the European wireless world on edge as he lets the suspense build as to which service providers will get exclusive rights in their respective countries to market the hot phone. Apple is said to be asking for 10% of the revenue from iPhone voice and data usage in Europe, a deal that would make other handset providers green with envy.

WSJ $500-iPhone, $1,100 Case

By YING WU
August 4, 2007; Page P3

(Top to bottom) Louis Vuitton alligator leather, $1,120; monogram, $225; Orbino crocodile case, $319; Incase neoprene sports case, $34.95.

First came the hype. Then came the phone. Now, everyone from big designers to tech-gear makers are selling cases to cradle Apple's iPhone.

At the high end, Italian maker Orbino has one made of caiman crocodile for $319, while Louis Vuitton will stock $1,120 alligator cases in its stores in October.

For those feeling more frugal after plunking down $500 for a cellphone, other cases cost about $30. In addition to leather versions, sports models have armbands and some have UV protection.

GIZMODO-No Good Cheating Girlfriends iPhone For Sale
According to Paul, he bought his girlfriend an 8GB iPhone because she wanted one. He then found out she was cheating on him with a guy from church and now he is selling her iPhone. If the advertisement up on Craig's list is true to fact, our man is quite at a loss. In my books any boyfriend willing to buy their other half an 8GB iPhone, no less, needs some sort of 'Best Boyfriend In The World' award. What he does not need is to be cheated on at any point and salt in the wound; losing his once beloved to a guy from church! (NSFW)

Man, I hope God was existing and watching the whole affair; a fellow from his own abode causing such heartache is out of order and the pair should have to pay. We think he just might have to, too. That demanding ho of a girlfriend of his is going to want a new iPhone before she succumbs to spiritual perdition. (He could possibly negotiate a price with Paul). Fortunately for the sinning pair, reception is good in hell, as that is where AT&T is based. Now ladies, hit the link, call Paul and secure a date; if he bought his last girlfriend an 8GB iPhone, imagine what he will get you on the rebound (NOTE: being originally a posting on Craig's List a grain of salt should be taken with this tale)

GIZMODO- iPod and iPhone Media Download Kiosks Coming January 2008

Although the "upcoming" Zune music kiosk download feature seems obvious thanks to the player's Wi-Fi capabilities, being able to download music onto your iPod or iPhone on the go seems less obvious. However, 22Moo has just announced a date for their iPod- and iPhone-compatible internet kiosk station that lets you download movies, videos, games and music onto your player when you're on the go. The launch is planned for January '08 at CES and MacWorld. (Where will YOU be in January? CES or Macworld? Or Both? )

July 30, 2007,

WSJ-Analysts Ponder iPhone Sales Forecasts

Apple’s announcement last week that it sold 270,000 iPhones in the product’s first 30 hours of availability popped the bubble of several excessively exuberant analyst reports. Many publications (including the Journal) reported that Wall Street was disappointed because analysts had expected sales as high as 700,000.

People get emotionally involved in the product and start thinking it’s going to be a bigger number than it actually is,” said Gene Munster, an analyst at Piper Jaffray. Mr. Munster initially projected sales of 200,000 over the first two days. But after he and colleagues measured sales rates at flagship Apple Stores in Minneapolis, New York, and San Francisco, he raised his estimate for first-weekend sales to 500,000 — with 355,000 of those expected in the two-day period that Apple would be reporting as part of its quarterly results.

“We definitely overshot,” Mr. Munster said, adding: “The part we’re definitely guilty of is building an estimate from three people visiting three stores over a three-day period.” He projected those sales to hundreds of other Apple stores and nearly 2,000 stores for AT&T, the only carrier to offer the iPhone.