Tag: apple

IPod DRM court case could collapse on technicality

novità-apple-2013After ten years trying to get an antitrust case against Apple to court, the case might collapse because the plaintiffs can’t prove they ever bought an iPod.

The antitrust case was messy and would have bought a fair few skeletons out of the closet proving that Jobs’ Mob had done its best to kill off rivals with some dirty deeds ordered by its Messiah Steve Jobs.

The case is so old that Jobs even recorded a video testimony defending his actions. The lawsuit covers iPods purchased between September 2006 and March 2009. Lawyers representing both consumers and businesses claim that the restrictions meant Apple could inflate the prices of iPod in an anti-competitive manner. They are seeking $350m in damages, which could be tripled under US competition laws.

However, now it seems that he case might get chucked out on a technicality. Lawyers for Apple have raised a last-minute challenge saying new evidence suggested that the two women named as plaintiffs may not have bought iPod models covered by the lawsuit.

Apple lawyers checked the serial number on the lead plaintiff’s iPod Touch and found it was bought in July 2009. The other main plaintiff, Melanie Wilson, also bought iPods outside the relevant timeframe, they indicated.

Judge Yvonne Gonzalez Rogers said at the end of the trial’s third day of testimony in Oakland, California said she was concerned that she did not have a plaintiff.

Lawyer Bonny Sweeny said that her team was checking for other receipts. She conceded that while Ms Wilson’s iPod may not be covered, an estimated eight million consumers are believed to have purchased the affected devices.

It is a pity as so far it has emerged in the trail that between 2007 and 2009, if an iPod owner tried to sync their device with iTunes and had music from another digital store on the device, they would receive an error message telling them to restore their iPod to factory settings. This effectively wiped all non-iTunes music from the device.

Apple maintained at the trial that the software and restrictions were necessary to protect users from malicious content and hackers.

HP pushes notebook sales

HPStrong orders from both the enterprise and from the retail market meant growth in notebook sales during the month of November, largely due to HP’s position in the market.

That’s according to data from Digitimes Research which claims the top five multinational vendor and Taiwanese original design manufacturers (ODMs) showed shipments growing by 10 percent in the month, following a decline in shipments in October.

All the vendors are attempting to stem the growth of tablets and smartphones and the research outfit claimed HP ordered four million notebooks from its ODM partners in the month – with Quanta, Compal, and Investec benefiting from the push by the US giant.

The researchers claim that shipments of global tablets will be in stasis for 2014, when all the figures are added up.  And it also predicts sales will decline in 2015.

Digitimes Research estimates that combined shipments of notebooks and tablets will be over 350 million units in 2015 but the major vendors incuding Apple, Lenovo, Samsung, HP, Asustek, Dell and Acer will take steps to secure their positions in the marketplace.

Apple’s garage beginning was a myth

Steve WozniakApple co-founder Steve Wozniak has scotched a long running myth that Apple started in Steve Job’s parents’ garage.

For a while now Apple has peddled an HP style myth that Apple started from the garage. However Woz said the garage thing was a bit of a myth.

“We did no designs there, no breadboarding, no prototyping, no planning of products. We did no manufacturing there. The garage didn’t serve much purpose, except it was something for us to feel was our home. We had no money. You have to work out of your home when you have no money,” he told Bloomberg.

He did a lot of his work at his cubicle at HP. He said that was an incredible time. It let him do a lot of side projects, and it was five years to the summer of ’75, when he built the Apple computer, the first one. The next summer he built the Apple II computer.

He also added that the goal of Apple was not the much touted “Steve Jobs wanted to change the world” idea beloved of so many.

Woz said that Jobs always spoke about wanting to be a person that moves the world forward, the only problem was that he could not create anything.

“Steve wanted a company real badly. His thinking was not necessarily about what computers would do for the average Joe in the average home. Steve only found the words that explained what these computers would do for people and how important it was a little later in life,”Woz said.

Woz said that Jobs did have the best brain in the outfit. He usually had a little, tiny suggestion, but usually he was right.

Woz said he was aware that he was in the middle of a revolution and that pretty soon we were going to have computers that were affordable.

“Every computer before the Apple I looked like—you have to imagine the most awful, not understandable computer you’ve ever seen in a museum or in a new movie. The Apple I was the first one to have a keyboard and a video display. A television. You would type on the keyboard and see your words on the television, or the computer could type its own words on the television and play games with you and ask questions and give answers. That was a turning point in history,” he said.

Apple deleted content from user devices

apple-disney-dreams-snow-white-Favim.com-142405Fruity cargo cult Apple deleted music from its customers’ devices which were not bought through the iTunes Music Store.

The information has come out of the proceedings of Apple’s iPod/iTunes antitrust lawsuit. Plaintiffs’ lawyers claimed Apple surreptitiously deleted songs not purchased through the iTunes Music Store from users’ iPods.

If this is true then the order must have come from Steve Jobs himself.

Attorney Patrick Coughlin, representing a class of individuals and businesses, said Apple intentionally wiped songs downloaded from competing services when users performed a sync with their iTunes library.

Users attempting to synchronise an iPod with an iTunes library containing music from a rival service, such as RealNetworks, would see an ambiguous error message without prompting them to perform a factory reset. After restoring the device, users would find all non-iTunes music had disappeared.

The court was told that that Apple decided to give its users the worst possible experience and blow up,” the iTunes library, Coughlin said.

Coughlin claims that Apple manufactured the error message in a move to stop customers from using their iPod to play back music from stores other than iTunes.

Apple insists that the system was a safety measure installed to protect users. Apple security director Augustin Farrugia said additional detail about the error’s nature was not necessary because, “We don’t need to give users too much information,” and “We don’t want to confuse users.” He went on to say that Apple was “very paranoid” in its protection of iTunes, a sentiment echoed in an executive email penned by Steve Jobs in 2004.

Jobs’ emails and a videotaped deposition revealed Apple was “very scared” of breaking contractual sales agreements with music labels, which in turn prompted an increased interest in digital rights management (DRM). Although iTunes no longer sells DRM-protected content, Jobs said frequent iTunes updates were needed to protect as “hackers” found new workarounds.

The case said that Apple is accused of creating a monopoly locking users into a closed ecosystem with FairPlay digital rights management (DRM), the iPod and the iTunes Music Store. Plaintiffs are seeking $350 million in damages, an amount that could be tripled to over $1 billion under U.S. antitrust laws.

Aside from Jobs’ deposition, current Apple execs Eddy Cue and Phil Schiller are scheduled to testify later this week.

Samsung mobile suits get the axe

Samsung HQ Silicon Valley - MM picThe head of Samsung’s beleaguered mobile division has hung on to his job – as we reported earlier this week.

But there will be blood on the carpet, according to sources who told Reuters that JK Shin’s three chief underlings will get their marching orders soon.

Samsung is the biggest smartphone manufacturing company in the world and leverages its vertical business, which includes memory modules, LCD screens and other components.

DJ Lee, who heads up Samsung’s mobile marketing worldwide, is one of those to feel the pain, according to the report.

Samsung is facing increased competition from Chinese manufacturers and continues to be under pressure at the high end from Apple with its iPhone products.

Reuters reports that the local press will cull around 25 percent of its executive in the mobile segment.

Financial analysts believe that Samsung will record poor revenues for 2014.

Apple App store safety is a myth

tumblr_mc8zb8BqH31rttlrno1_400If you believe the Tame Apple Press you would think that the Microsoft and Google App stores were a terrible place full of Apps poisoned with malware, while the Apple App store is so rigorously checked, that all is completely safe.

But a study by InfoWorld has poured cold water on that particular myth claiming that the store has just as much malware inside.

Simon Phipps, who is an Open Saucy blogger, wrote that developers who are competing with Apple find that getting their apps into the store nearly impossible and those writing Apps for Apple find that the rules are constantly changing.

“But if you’re a scammer looking to make a fast buck, it appears that Apple process can be defeated and the scale of the problem became apparent in the the Apache OpenOffice community,” Phipps said.

For several months, the user support mailing list has been bothered with apparently random questions from people seeking support for an iPad app. Apache OpenOffice doesn’t even have an iOS version, so people wondered how there could be questions about supporting it.

It turned out that there was a $2.99 app in Apple’s iTunes Store and the developer who posted this app has used all sorts of tricks to populate the entry. He dubbed it Quickoffice Pro, which was the name of a genuine app bought by Google in 2012 and finally discontinued in 2014. Buyers would likely have an instinctive trust for the name, especially because the app uses the icon from the real Quickoffice product.

It simply displays a gray screen with the word Tap. When you tap the screen, the app exits. The developer has pointed angry customers at an innocent open source project whose ethos is to treat all user queries seriously and that doesn’t have the resources to mount a response for lack of volunteers.

It was posted under Lee Elman’s personal Apple developer account without permission or his  knowledge.

But how did this happen if Apple claims to meticulously screen all submissions to the store? InfoWorld found other examples. Again real accounts are being used for fake products.
Apple is not saying anything about the allegations.

 

Smartphone shipments slow right down

threeiphonesShipments of smartphones worldwide slumped by 25.9 percent in 2014 and will fall again next year by 12.4 percent.

That’s the opinion of market intelligence company Trendforce which said 1.17 billion smartphones left the factories this year and 1.31 billion will ship next year.

The reason, according to Avril Wu, an analyst at Trendforce, is because the penetration rate “is already very high while the market is saturated”.

She said that Chinese brands will represent 17 percent of handset shipments in 2015 – with competition intense. Lenovo, Huawei, Xiaomi, Coolpad, ZTE and TCL are competing on price meaning their margins are as thin as a cigarette paper.  Trendforce thinks mergers and acquisitions over the next few years will be the inevitable conclusion of this trend.

Meanwhle, the iPhone 6 continues to sell well but brands using the Android and Windows operating systems find themselves competing on price.  This will continue in the coming year.

The 4G network, she says, is now in place and will mature next year, with Qualcomm taking the lead over Mediatek in the semiconductor infrastructure required.

Zombie class action haunts Apple

at-least-mantan-moreland-graces-this-poster-hollywood-horror-history-classic-horror-eras-the-1940-s-b840d71b-c348-43fd-ac1b-cf79e1070d44A ten-year old class action is back from the dead after haunting the fruity cargo cult Apple for more than a decade.

Apple faces an antitrust lawsuit which claims the outfit tried to monopolise online music distribution is headed to trial.

If you believe the Apple iPod iTunes antitrust litigation, Apple violated the US and California antitrust law by restricting music bought on iTunes from being played on devices other than iPods and by not allowing iPods to play music bought on other digital music services.

Another zombie  is going to be dug up for the trial — late Apple founder Steve Jobs will reportedly appear via a videotaped statement during the trial. Our guess is that he will not be able to answer questions, unless lawyers conduct a séance.

The trial will start this morning in the US District Court for the Northern District of California.

Plaintiffs are seeking about $350 million in the case and lawyers for both sides have filed dozens of trial documents over the past decade. The case has a long history. First, the court refused to dismiss it but chucked out some of the original claims in 2005.

In October, Judge Yvonne Gonzalez Rogers scheduled a trial to begin this Tuesday.

The original January 2005 complaint in the case references a music distribution industry that no longer exists nearly a decade later. The document refers to iTunes competitors Napster, Buy.com, Music Rebellion and Audio Lunch Box, along with digital music players from Gateway, Epson, RCA and e.Digital.

Even the opening paragraphs of the complaint talk about defunct CD seller Tower Records.

“It would be egregious and unlawful for a major retailer such as Tower Records, for example, to require that all music CDs purchased by consumers at Tower Records be played only with CD players purchased at Tower Records,” the complaint said. “Yet, this is precisely what Apple has done.”

Lawyers for plaintiff Thomas Slattery wrote that Apple has rigged the hardware and software in its iPod such that the device will not directly play any music files originating from online music stores other than Apple’s iTunes music store.

Apple removed DRM (digital rights management) from iTunes in early 2009, so the lawsuit covers iPods purchased from Apple between September 2006 and March 2009.

 

Apple shares tank

You-Gun-It-When-We-PushWall Street watched in horror yesterday as the value of shares in the industry darling, Apple shares plummeted faster than a free fall parachuting team of elephants which had forgotten to pack the key ingredient of their act.

Apple shares tumbled shortly after the start of trading on Monday, briefly suffering their largest price drop in at least three months on an unusual spike in volume.

More than 6.7 million shares trading in a one-minute stretch, the heaviest minute of trading in Apple since October 29.

The stock lost over three percent in that minute, falling as much as 6.4 percent to $111.27. At midafternoon, it was down three percent to $115.45. The Tame Apple press did its best to insist that the share drop was nothing to do with Apple. They claimed it was all down to algorithmic trading which put Apple on sell.

Reuters was a bit huffy that computers had dared to say its favourite computer company was worth less than it was in the morning. The HFT has been criticised for affecting the trading of stocks by sending in numerous trade quotes that slow quote activity – without filling the trades when shares fall, it wrote.

However, other analysts disagreed. Bill Harts, chief executive officer of Modern Markets Initiative, an advocate of high-speed electronic markets said that determining the cause of the decline was not so simple. “The fact is we don’t yet know what caused the drop, and blaming it on HFT is misleading.”

Morgan Stanley strategists dropped Apple’s weighting in their strategic portfolio to three percent from four percent in an equity outlook note released Monday, but traders said the swiftness of the decline was too dramatic to be attributed solely to the note, which was released before trading opened.

It might have been the Morgan Stanley news that rather stimulated the event, but not enough to cause such a decline, analysts claim.

 

Apple to suffer on iPad sales

gala_appleApple sales of the iPad are likely to fall because people buying its products are moving to larger iPhones and those are cannibalising the market.

That’s according to the research unit of Digitimes which estimates that shipments of iPads will fall to about 55 million units in 2015, way down from sales during this year.

Other researchers believe that the iPad market has reached maturity in the so-called developed markets, and people are unlikely to buy a new and expensive tablet when their current iPads are powerful enough for most purposes.

But there’s a silver lining to every cloud and the research outfit believes that a combination of Sony exiting the notebook market and Apple cutting prices will see Macbook shipments growing by 15 percent next year.

Apple is expected to release a 12.9 inch iPad during 2015 and also ship 12.2-inch “Retina” displays but that won’t do very much to stem the decline of its very profitable iPad lines.

Meanwhile, Apple, as we reported elsewhere today, is toying on when to release its iWatch for the best possible selling period.

Apple plans six monthly iPhones

two-applesBad news for Apple fanboys who have to take out a mortgage every time Jobs’ Mob releases a new phone – the fruity cargo cult might release a new one every six months.

The dark satanic rumour mill has manufactured a hell on earth rumour which suggests that Apple’s policy of releasing only one phone a year will be scrapped.

Apple is looking at a condensed six month release timetable going forward in order to not only keep up with the more frequent releases from Samsung but also to provide a boost to iPhone sales when the iWatch launches in the spring.

Jobs’ Mob has offered an S-model every other year because most carriers have only allowed their customers to upgrade every eighteen to twenty-four months. That is set to change as Verizon NEXT and AT&T EDGE allow more frequent smartphone upgrades than the traditional every other year eligibility, making that traditional timetable obsolete.

Apple has also heavily invested in the idea of making a major design change every other year.

This means that the iPhone 7 and iPhone 6S both arriving in autumn, with the 7 being the more expensive flagship model and the 6S being the mid-range model from day one.

Apple is hesitant about launching the iWatch in the spring of 2015 without a new iPhone to go along with it, as it could give hesitant consumers an excuse to wait on buying both until the fall.

This means that the iPhone 6S a release date in the spring with the Watch, and then launching the iPhone 7 in Sept 2015. Another plan being looked at is the iPhone 6S arriving in the spring and sticking around for a full year, with the iPhone 7 being released in the spring of 2016.

However, this could all backfire. Apple fans loyally buy their toys once every year, and this could be shaken if they have to do this once every six months. Lately changes to the iPhone have been cosmetic and this is likely to get worse if there is a six-month release cycle. Soon Apple fanboys will wake up to the fact that they are buying the same phone with changes which are just not worthwhile bankrupting themselves thinking different every six months.

 

 

Apple asks Samsung for help to fix iPhone 6

ByRWIdiIUAAWry9Apple is turning to smartphone archrival Samsung in order to fix an  iBug with its new iPhone 6 phablet.

The super expensive machines keep crashing which is something that Apple does not like talking about much.

According to Business Korea Jobs’ Mob is going to buy more components from Samsung for its iPhone 6 and iPhone 6 Plus, along with Apple Watch parts.

In return Samsung is going to help Apple fix a bug in the NAND flash in the higher storage 64GB which is triple-level cell flash and the SK Hynix, Toshiba and SanDisk TLC NAND the 128 GB models.

Samsung will supply fresh modules which avoid the performance issues that some users have encountered.

This isn’t the only bug Apple has had with its phablet, either. Some users have reported problems with the camera, namely the optical image stabilisation (OIS) going awry and causing blurry shots.  Apple’s answer seems to be to return to its old business partner and get some decent gear under the bonnet.

 

How Apple destroyed Sapphire glass

Broken_glassMIT Technology Review  has been going through the bankruptcy documents of GT Advanced and seems to have found out what went wrong – and why the iPhone 6 bends.

Apple invested more than $1 billion in an effort to make sapphire one of the device’s big selling points. Making screens out of the nearly unscratchable material would have helped set the new phone apart from its competitors. It would have also enabled it to be structurally strong

When Apple announced the iPhone 6 this September, however, it didn’t have a sapphire screen, only a regular glass one and was structurally weak, so that it bent in your pocket.

GT Advanced Technologies, declared bankruptcy as without Apple it was doomed.

Apple had been using sapphire to cover the cameras and fingerprint sensors in some iPhones since October 2013. But making large pieces of sapphire—enough for a smartphone screen—would normally cost 10 times as much as using glass.

In 2013, GT claimed it could cut the cost by two thirds by increasing the size of its equipment and adapting the crystal growth procedures to make cylindrical crystals—called boules—that are more than twice as large as ordinary sapphire crystals.

Apple originally offered to buy sapphire growing furnaces from GT. But according to sources familiar with negotiations, after five months Apple demanded a major change in terms, requiring GT to supply the sapphire itself. Apple wanted to drive costs down by having GT build the world’s largest factory to produce the stuff.

Apple moaned in the court documents that GT failed to produce “any meaningful quantity of useable sapphire”.

However GT’s bankruptcy filing said that was mostly Apple’s fault.

Producing sapphire requires a very clean environment, but construction at the factory meant that sapphire was grown “in a highly contaminated environment that adversely affected the quality of sapphire material,” according to GT.

It also needs uninterrupted supplies of water and electricity to regulate the temperature of the molten aluminium oxide used to form the boule. GT said that to save costs, Apple decided not to install backup power supplies, and multiple “outages” ruined whole batches of sapphire.

GT said in the documents that there were problems with much of the sawing and polishing equipment used to slice the boule—equipment that it says Apple selected. For example, a diamond-wire saw that was supposed to cut sapphire in 3.6 hours took 20 hours to do it and had to be replaced. According to GT, problems like these increased the costs of processing the sapphire boule by 30 percent.

Then came the worst of it. The terms Apple negotiated committed GT to supplying a huge amount of sapphire, but put Apple under no obligation to buy it.

 

Internet of things war hots up

Internet of ThingsA wave of consolidation in the internet of things (IoT) market is assured in the next few years.

That’s according to financial company Hampleton Partners, which said in a report that vendors have spent over $9 billion in the marketplace in the last few years in a bid to put their stake in the ground.

And early players in that market include Google, Samsung, Verizon and others.  Apple wants to make a play in the market too.

In the next year, Hammpleton thinks that other companies will make acquistions in the next year or so to get into a market estimated to be worth many billions by the end of the decade.

Those include Intel, TI, Texas Instruments and AT&T.

One of the problems is that when there are countless devices equipped with semiconductors and the ability to be connected to the internet, is that there are few standards and so far few attempts to create such standards.

Estimates vary about the number of devices connected by the end of the decade but it’s certain the number will be in tens of billions.  Each device, however, will cost very little – money to be made will be in the way such things are interconnected and structured.

Apple fudges book cartel rulings

Apple's Jonathan IveThe company which designer Jonathan Ive described a week or two back as built on integrity has finally agreed to cough up $450 million after it conspired with five publishers to hike the prices of e-books.

On Friday, US district judge Denise Cole told Apple it must pay $40 million to as many as 23 million people if it lost a hearing that showed it was liable under antitrust laws. But Apple is pushing for a fresh hearing and if it is unsuccessful it won’t have to pay anything.

And if that happens, the same judge may have to preside over the same case all over again.

Even though Apple agreed to settle the case in June, it can continue with an appeal  after it was found guilty last year  of conspiring to hike e-book prices and unfairly compete against Amazon.

Apple’s appeal is due to be heard in mid-December and if it is successful it might go to a new trial and continue to ramp up the cost of lawyers who have already racked up an estimated $20 million.