Apple CEO Steve Jobs has reportedly confirmed upcoming support for the company’s iTunes Extras and iTunes LP formats on the second-generation Apple TV. In an email exchange with a customer reprinted by Mac Rumors, Jobs said that an update is “coming” for the next-generation set-top box that will provide support for both the iTunes Extras and iTunes TV formats. Apple originally added support for iTunes Extras and iTunes LP to the first-generation Apple TV in software version 3.0, but such support was noticeably absent from the second-generation model when it launched in September.
During Apple’s Third Quarter 2010 Financial Results Conference Call, Apple CFO Peter Oppenheimer, Apple COO Tim Cook, and, surprisingly, Apple CEO Steve Jobs made several noteworthy comments concerning the company’s digital media products, including the iPod, iPhone, and iPad. During his opening remarks, Oppenheimer noted that Apple passed 125 million iOS devices—including the iPhone, iPad, and iPod touch—last month, with over 200,000 registered iOS developers, 65,000 game and entertainment apps, and over 30,000 apps made specifically for iPad. Oppenheimer also noted that iAd launched in July, and that the company is very happy with its results so far.
In regards to the iPod, Oppenheimer said it remains the worldwide MP3 player leader with over 70% market share, and is gaining share in most of tracked countries, while iTunes revenue for the quarter was over $1 billion. Turning to the iPhone, he pointed out that Apple sold over 40 million iPhones in fiscal year 2010, and that the iPhone accounted for more than $8.82 billion in revenue in the fourth-quarter, with an Average Selling Price (ASP) of around $610. iPhone sales grew in Asia, Europe, and Japan during the quarter, with sales more than doubling year-over-year in Japan. He added that the percentage of Fortune 500 companies piloting or deploying the iPhone jumped from 60% to 80% following the launch of the iPhone 4, and said Apple believes it could have sold even more iPhones if it could have kept up with demand.
According to market research firm iSuppli, the second-generation Apple TV may have a materials cost of less than $64. Citing iSuppli’s teardown of the device, Bloomberg BusinessWeek reports that the Apple TV’s Samsung-made A4 processor is its most expensive part at $16.55, followed by the Toshiba 8GB flash memory chip, which is estimated to cost $14. The Broadcom-sourced Wi-Fi and Bluetooth chip costs $7.65, according to iSuppli’s estimate, and a Texas Instruments $0.93 microcontroller chip also contributes to the overall cost. Overall, iSuppli found that the use of components similar to those found in the company’s other iOS devices helped to bring the materials cost down to a lower percentage of the retail price than was seen in the first-generation model. “As soon as we saw the first A4 chip in the iPad, it was pretty clear to us that Apple’s plan was to use it across several devices,” said Andrew Rassweiler, the iSuppli analyst who performed the teardown. “It makes sense to control costs across the supply chain.”
Speaking at the Royal Television Conference in London, Time Warner CEO Jeff Bewkes cautioned against potential deals with Apple and/or Amazon that could harm sales of TV shows to other networks. “How can you justify renting your first-run TV shows individually for 99 cents an episode and thereby jeopardize the sale of the same shows as a series to branded networks that pay hundreds of millions of dollars and make those shows available to loyal viewers for free?” Bewkes said. “These new entrants must meet a few criteria: They must provide consumers with a superior TV experience, and they must either support or improve the overall economics that funds and creates the programming in the first place.” NBC Universal CEO Jeff Zucker, who has a history of playing hardball with Apple, recently voiced similar concerns about Apple’s 99-cent TV rentals, saying, “We do not think 99 cents is the right price point for our content. ... We thought it would devalue our content.”
The second-generation Apple TV is capable of decoding and playing back 1080p video, according to a discussion thread on Mac Rumors’ forums. Users of the new set top box report that iTunes accepts 1080p content, which can then be streamed to the Apple TV 2G. While some 1080p material has caused the Apple TV to struggle—likely because of a higher bit rate than other 1080p files that did play without issue—it is encouraging that the second-generation Apple TV is able to decode 1080p at all, a process that’s considered the most resource-intensive part of playing a video. Unfortunately, 1080p video streamed to the Apple TV is downscaled to match the device’s 720p output cap before being sent to the connected TV, but this discovery bodes well for a potential future 1080p update to the device, and also keeps users with large libraries of 1080p content from needing to re-encode those videos, as long as they play back normally.
iLounge has learned that the Apple TV’s main menus may be limited in functionality—or disappear altogether—depending on the types of rental content available in that country. In Canada, for example, rental movies are available, so the “Movies” menu contains the full stable of options, while the “TV Shows” menu disappears completely, as iTunes TV Show rentals aren’t yet available in that country. In another example, setting Mexico as the “Country” results in the removal of the “TV Shows” menu and an empty “Movies” menu, save for the “In Theaters” trailer option, as neither Movie nor TV Show rentals are available. Any TV Shows, Movies, or other media that users have saved to iTunes and available on their networks can be accessed through the separate “Computers” main menu listing.
During our early testing of the second-generation Apple TV, iLounge has found several films available for rent that are currently in or awaiting theatrical release. I’m Still Here, the quasi-documentary starring Joaquin Phoenix which debuted in theaters on September 10, is available for rental for $8, while the sci-fi drama Monsters is available for rental for $11, ahead of its limited theatrical release on October 29. It is unclear whether Apple has plans to continue to offer theatrical release films for rent at higher prices, or whether these offerings are simply one-off titles and not indicative of a larger trend.
Update: It appears the films were available for rent through iTunes prior to the release of the second-generation Apple TV, and are not related to the set-top box’s launch.
iLounge has confirmed that the second-generation Apple TV is starting to arrive in Apple retail stores across the U.S. The first shipments of the device arrived at some stores as early as yesterday morning, and while it is expected that most stores should have the device in stock, we encourage readers to call ahead to ensure your local store has them on hand before heading out.
Update: iLounge editor Jesse David Hollington notes that second-generation Apple TV units began arriving in Canadian Apple Stores this afternoon.
iFixit has completed its teardown of the second-generation Apple TV, and has already revealed several previously unknown details of the device. Notably, the second-generation Apple TV sports 8GB of internal flash storage, equivalent to the $99 iPhone 3GS, and also features 256MB of RAM, the same as the fourth-generation iPod touch and the iPad. Its Apple A4 chip bears the same marking as the one found in the fourth-generation iPod touch and iPad, but different from the iPhone 4; the Broadcom BCM4329XKUBG 802.11n Wi-Fi/Bluetooth/FM chip is also the same as the one found in the iPad. Overall, iFixit gave the second-generation Apple TV an eight out of ten for repairability thanks to its easy-to-open case, separate power supply board, and common fasteners.
An iOS developer has managed to extract the second-generation Apple TV’s main interface and run it on an iPod touch. Named Lowtide.app, the interface was built with support for multiple devices, including the iPad, in its list of supported hardware, TUAW reports. Developer Dustin Howett took the application and managed to get it running on an iPod touch, although it required modification of the iPod touch’s software, to the point where it needed to be completely restored to regain its normal functionality. Notably, the application runs at full resolution and therefore does not display the entire Apple TV interface on the iPod touch, but instead only the furthest left portion. A video of the interface in action on the iPod touch is embedded below.
Apple has posted the new firmware for its second-generation Apple TV ahead of the device’s delivery to customers. Based on the file name, AppleTV2,1_4.1_8M89_Restore.ipsw, the firmware appears to be a version of iOS 4.1. Notably, the iPhone Dev-Team was able to use its SHAtter exploit to decrypt the keys used to block access to the Apple TV filesystem; according to Will Strafach, the new Apple TV OS is a “mashup of the old AppleTV OS and iOS,” and “all binaries are marked iPad-compatible.” Strafach suggests that existing add-ons for modified first-generation Apple TV units may work with little to no changes if compiled for ARM, while noting that “it seems all iOS frameworks” are present in the new firmware. [via Wired]
Apple has started shipping its second-generation Apple TV to pre-order customers. According to a comment made by iLounge reader Chuck, it appears the units are shipping directly from China instead of from a U.S.-based warehouse, with the delivery promised on September 28 or later—in-line with Apple’s previously announced intention to ship the device this month. Apple’s online store still lists a 2-3 week wait for new orders; there has been no indication of when the second-generation Apple TV might be available for purchase in Apple’s retail stores.
Apple has notified second-generation Apple TV customers that it is refunding expedited shipping charges because of an unspecified delay. “Our records indicate that when you placed your order you paid for upgraded shipping,” Apple says in the email. “Due to a delay, we may have not been able to meet our delivery commitment.” Apple has previously refunded some expedited shipping charges for just-released products when it has been necessary to drop ship them directly from China, however, the email does not specify either a revised delivery date or suggest that Apple TV will miss Apple’s promised September release. To the contrary, iLounge has confirmed that the company has also been issuing refunds simultaneously for expedited iPod orders, and already started authorizing the credit cards of pre-order customers, which AppleInsider notes was done eight days prior to the iPad’s launch in April.
New evidence of apps support on the second-generation Apple TV has surfaced online. Mac Rumors points to a LinkedIn profile of an Apple intern, who describes him/herself as an “AppleTV Apps Engineer.” Last week, it was revealed that the second-generation Apple TV, despite using a user interface extremely similar to that of the first-generation model, actually runs a version of iOS. Reports from Engadget prior to the device’s launch that correctly predicted a 720p video output cap, the device’s A4 chip, and its use of iOS, also said the new Apple TV would be capable of running third-party applications, although not necessarily the same apps found on the iPhone, iPod touch, and iPad.
AirPlay, Apple’s revamped version of AirTunes meant for streaming audio, video, and photos to compatible devices, may also allow for streaming of content from third-party applications, according to a new report. Citing testing done by a reader using the first iOS 4.2 beta, Mac Rumors reports that every application that uses the standard iOS audio/video playback interface now shows an AirPlay button for streaming. While the second-generation Apple TV, the only AirPlay device announced so far to accept video and photo streams in addition to audio, has yet to be released, a reader was successfully able to stream audio to an Airport Express from the following applications: Safari, YouTube, Netflix, Videos, iPod, BBC News, and MLB At Bat, suggesting that third-party apps may be able to stream video as well as audio to compatible devices. Notably, the software is still in beta, and as such the feature could be removed and/or tweaked prior to iOS 4.2’s public release.
The second-generation Apple TV runs a variant of iOS, according to the USB device configuration list found in the first beta version of iOS 4.2. TUAW reports that the list contains a discriptor for “AppleTV2,1” referencing the new set-top box, and indicating that it is indeed an iOS device. Notably, the “productString” and “productID” fields list it as “iProd” and “4765” respectively, indicating that it is the same device that was previously identified as the second-generation iPad, due to the fact that the original iPad used a similar “iProd” descriptor. During Apple’s demonstration of the second-generation Apple TV, the device sported an interface similar to that of the first-generation model, despite the device being based on the same Apple A4 chip used in the iPad, iPhone 4, and fourth-generation iPod touch instead of the Intel processor found in the prior model.
Initially paid little attention on the first-generation Apple TV, a rear-facing USB port has been changed on the second-generation model—a point not mentioned during Wednesday’s introduction of the new Apple TV in San Francisco. The old port was a full-sized female USB connector, physically capable of connecting to keyboards, other peripherals, and even Apple’s own Dock Connector to USB cables; the new port is a female Micro-USB connector, located immediately beneath the HDMI port and labeled only with a small USB icon. Apple describes it as being “for service and support,” without further explanation.
Apple TV’s full-sized USB port was included on the original Apple TV solely for use by authorized service professionals, enabling a crashed device to be restarted and potentially diagnosed at an Apple Retail Store with appropriate tools. It was never supported by Apple for any type of accessories during the product’s three-year lifespan, despite some user interest in adding additional storage capacity, TV tuners, keyboards, and other peripherals to the device. However, hackers seized upon the USB port to enable unauthorized improvements to the device’s software, using inexpensive USB memory keys to create “patchsticks” that installed customized modifications, including services such as XBMC and Boxee.
Due to the change, USB to Micro-USB adapters will now be necessary to connect common devices to the second-generation Apple TV—assuming that hackers succeed in enabling it to be used for something other than service purposes. Until and unless that happens, the Micro-USB port will remain “for service and support,” only. (Thanks, Brian.)
Apple has confirmed to Ars Technica that it will not be releasing an update to bring the new second-generation Apple TV features such as Netflix streaming to the older device. As with other products Apple has discontinued, the first-generation Apple TV will continue to work in the same way as it already has: users will continue to be able to purchase movies and TV shows directly from the first-generation Apple TV and download new content to the device’s internal hard drive. Notably, however, the first-generation Apple TV will not provide any support for TV Show Rentals, even those rented directly within iTunes 10.
In separate interviews with Bloomberg Businessweek and AllThingsD, Apple CEO Steve Jobs has provided some insight into yesterday’s announcements. Jobs told Bloomberg that Apple could open an App Store for the TV when the time is right. When asked if the iPad could evolve into the TV of the future, Jobs said, “That’s how I do most of my TV watching today.” Discussing Apple’s new Ping social networking service, Jobs told AllThingsD that the company had held talks with Facebook about a variety of potential partnerships, but that the talks went nowhere, due to “onerous terms that [Apple] could not agree to.” Jobs did say that the service could incorporate Facebook Connect, making it easier to find friends, but said that users can still find friends by typing their names into search or sending them email invitations. Curiously, several reports—which have been confirmed by iLounge editors—indicate that a Facebook Connect option was seen for a brief time on Apple’s Ping service before being removed for unspecified reasons.
Apple has posted a stream of yesterday’s Fall 2010 iPod event on its website, as well as a downloadable version on its Apple Keynotes podcast. During the event, Apple announced iOS 4.1 and 4.2, new models of the iPod shuffle, iPod nano, and iPod touch, iTunes 10 with the new Ping social networking service, and a new cheaper streaming-based Apple TV. For more information on the event, see our summary article, our complete transcript, and our image gallery of the new products.