Apple is making several changes to the terms of its iAd service in an attempt to fight share loss in the mobile advertising market. According to an Ad Age report, Apple has lowered the initial buy-in to $100,000 from $300,000, making the current rate just one-tenth of the $1 million required when the service launched. Other changes include giving developers a 70% cut of ad revenues from iAds running in their apps, up from 60%, and dropping the per-click fee for advertisers in favor of a fixed cost-per-thousand rate. Citing data from IDC, the report claims that Apple lost ground in the mobile ad market in 2011, dropping to a 15 percent share from 19 percent in 2010.
In addition to the previously reported statements on supply chain statistics and the Apple TV, Apple CEO Tim Cook provided several other noteworthy comments during his talk at the Goldman Sachs Technology and Internet Conference. Regarding iCloud, Cook suggested that the genesis of Apple’s Internet-based synchronization was customer convenience; in his words, it was not a great customer experience to have to sync content between devices, and Cook explained that iCloud makes this easier by letting its now 100 million users transfer content back and forth from the cloud rather than from an increasing variety of computer-like devices they now use. Cook also mentioned Siri, describing it as an emerging alternative to the physical keyboard and mouse, along with Multi-Touch. He called both iCloud and Siri “profound” innovations in computing, and claimed that they are things today’s users will talk about with their grandkids.
Additionally, when asked what mark he would like to leave on the company, Cook said Apple was a unique company, and unique culture, that can’t be replicated. Speaking forcefully, he said that he would not witness or permit the slow undoing of Apple—an allusion to the John Sculley regime of the 1980s—because Cook believes in the company’s work so deeply. “Steve drilled in all of us over many years that the company should revolve around great products, and that we should stay extremely focused on few things rather than try to do so many that we did nothing well, and that we should only go into markets where we can make significant contributions to society, not just sell a lot of products,” Cook said. “These things, along with the expectation of keeping excellence… these are the things I focus on. Because those are the things that make Apple this magical place, that really smart people want to work in, and not just do their life’s work, but their life’s best work…”
Speaking at the Goldman Sachs Technology and Internet Conference, Apple CEO Tim Cook announced that the company plans to start offering monthly supply chain reports. According to Cook, these monthly supply chain compliance statistic reports will be posted on the company’s website, and represent a further effort on the company’s part to improve the lives of those who are involved in the creation and production of its products.
Apple has posted a notice on its Investor Relations page noting that it will be offering a live audio webcast of CEO Tim Cook’s presentation at the Goldman Sachs Technology and Internet Conference tomorrow. According to the notice, Cook will speak at approximately 3:30 p.m. Eastern Time/12:30 p.m. Pacific Time. As noted by Mac Rumors, Cook has spoken at the event several times in the past, and while offering occasional insight into Apple’s business, he has never used the event as a platform for an announcement. [via @setteB.IT]
Apple nabbed the top spot in the 13th Harris Poll Reputation Quotient (RQ) study, which measures corporate reputation among U.S. companies. The study measures six dimensions that comprise reputation and influence consumer behavior, including Social Responsibility, Emotional Appeal, Financial Performance, Products & Services, Vision & Leadership, and Workplace Environment. Apple scored the highest reputation score in the study’s history—85.62—by being the top-ranked company in the latter four categories, while Whole Foods was tops in Social Responsibility, and Amazon.com won the Emotional Appeal category. Overall, Apple was trailed in the rankings by previous leader Google, with a score of 82.82, Coca-Cola, with a score of 81.99, Amazon, with a score of 81.92, and Kraft Foods, which earned a score of 81.62. The study is based on surveys of more than 17,000 members of the American general public.
According to new data from The NPD Group, Apple was the top consumer electronics (CE) brand in the U.S. in 2011, based on revenue. As noted in a press release, Apple was the only company in the top five to see a sales increase, posting a 36 percent rise over 2010, besting Hewlett-Packard, which came in second place and saw sales decline three percent, and Samsung, which came in third on a sales decline of six percent. Sony and Dell rounded out the top five, seeing sales declines of 21 percent and 17 percent, respectively. Notably, Apple accounted for 19 percent of all sales dollars in the fourth quarter, meaning almost one of every five dollars spent on consumer electronics during the holiday quarter in the U.S. went to the Cupertino-based company. The company was also the third-largest CE retailer by revenue in the U.S. in 2011, behind only Best Buy and Walmart, and ahead of Staples and Amazon.
Apple has been sued by a small Swiss-based company over wireless interaction between the iPhone and the Apple TV. According to an AppleInsider report, a company named SmartData filed suit against Apple in the Northern District Court of California, alleging that Apple infringed on a patent related to “wireless computing technology” called Zukero. The report claims that SmartData’s patent for a “modular computer” describes a wireless system consisting of a “pocket sized” unit to store data and run programs, a second data input device with wireless connectivity that serves as an interface, and a third element that is a television screen.
Specifically, the suit claims infringement when the iPhone and Apple TV are used together via Apple’s Remote app; it also says that Apple willfully infringed on the patent, as SmartData contacted Apple regarding the patent in July 2004, and reportedly negotiated a potential licensing agreement until mid-2006, at which point Apple allegedly ceased communication with the company. SmartData is seeking damages, a permanent ban on the infringing products, and a trial; the company does not make any devices itself, and is currently shopping around its Zukero patent, according to the report.
Late Apple co-founder Steve Jobs was honored with a Special Grammy Award over the weekend, and Apple senior vice president of Internet Software and Services Eddy Cue was on hand to accept the award in his stead. Mac Rumors reports that upon accepting the Trustees Award, Cue said, “On behalf of Steve’s wife, Laurene, his children, and everyone at Apple, I’d like to thank you for honoring Steve with the Trustees Grammy Award. Steve was a visionary, a mentor, and a very close friend. I had the incredible honor of working with him for the last fifteen years”.
“Accepting this award means so much to me because music meant so much to him. He told us that music shaped his life…it made him who he was. Everyone that knows Steve knows the profound impact that artists like Bob Dylan and The Beatles had on him”, he continued. “Steve was focused on bringing music to everyone in innovative ways. We talked about it every single day. When he introduced the iPod in 2001, people asked ‘Why is Apple making a music player?’ His answer was simple: ‘We love music, and it’s always good to do something you love.’ His family and I know that this Grammy would have been very special to him, so I thank you for honoring him today.” As noted in the report, the Grammy marks the second time Jobs and Apple have been honored by The Recording Academy, as Apple itself won a Technical Grammy in 2002.
Apple has announced that the Free Labor Association (FLA) has started to conduct special voluntary audits of Apple’s final assembly suppliers—including Foxconn facilities in Shenzhen and Chengdu, China—at Apple’s request. According to a press release issued by the company, a team of labor rights experts led by FLA president Auret van Heerden began the first inspections Monday morning at the facility in Shenzhen known as Foxconn City. As part of the inspections, the FLA will interview “thousands” of employees, seeking information on working and living conditions, inspect manufacturing areas, dormitories, and other facilities, and conduct an extensive review of documents related to employment procedures, all with the full cooperation of Apple. The release claims that the FLA’s findings and recommendations from the first assessments will be posted in early March on its website, with similar inspections of Quanta and Pegatron facilities to be conducted later this Spring. When completed, the FLA’s assessment will cover facilities where more than 90 percent of Apple products are assembled.
“We believe that workers everywhere have the right to a safe and fair work environment, which is why we’ve asked the FLA to independently assess the performance of our largest suppliers,” said Apple CEO Tim Cook. “The inspections now underway are unprecedented in the electronics industry, both in scale and scope, and we appreciate the FLA agreeing to take the unusual step of identifying the factories in their reports.”
Apple has filed a new federal lawsuit against Samsung in the U.S., accompanied by a motion seeking a ban on sales of the Galaxy Nexus. FOSS Patents reports that Apple filed both in the United States District Court for the Northern District of California; the preliminary injunction filing has been released, while the main complaint has not yet entered public record. According to the report, Apple is asserting four patents in its injunction request, including the “data tapping” patent which led the International Trade Commission to order an import ban against HTC, a patent related to Siri and unified search, a new slide-to-unlock patent, and a word completion patent. The report notes that unlike Apple’s prior motion for an injunction against Samsung products—which was denied by Judge Judy Koh, to whom the new case has also been assigned—this filing is based on strong technical patents, as opposed to the design-related patents asserted previously. The move to block the Galaxy Nexus in particular is notable, as the device was developed by Samsung in close cooperation with Google, and serves as the flagship device for Android 4.0, meaning that “Google cannot deny its undivided responsibility for any infringement findings”.
Apple has filed a new lawsuit against Motorola Mobility in an attempt to prevent further litigation. Florian Mueller of FOSS patents reports that the suit, filed in the Southern District of California—close to where Qualcomm is based—claims that Apple, by way of the iPhone 4S’ use of a Qualcomm chip and an existing Motorola-Qualcomm patent licensing agreement, has every right to use Motorola’s patents in the handset. Should that prove true, Motorola may be guilty of breach of contract, which could result in damages awarded to Apple. In any case, a win by Apple is likely to derail any other lawsuits filed by Motorola against Apple over the iPhone 4S, both in the U.S. and internationally.
Motorola Mobility, which recently won its second patent ruling against Apple in Germany, has lost its bid for a third. Bloomberg reports that the Regional Court in Mannheim has rejected a Motorola suit accusing Apple of infringing upon a patent involving the use of mathematical sequences in mobile telecommunications. When delivering the ruling, Presiding Judge Andreas Voss said that Motorola didn’t show that Apple is violating the patent. Two more cases between the two companies are pending in German courts, according to the report. [via MDN]
Apple has started to air two new TV advertisements for the iPhone 4S. Like prior commercials for the 4S, the new spots, entitled “Rock God” and “Road Trip”, spotlight the device’s Siri voice-activated virtual assistant. The former shows a teen using Siri to find a guitar, songs to learn, keep a list of possible band names, and schedule band meetings, all before asking the phone to call him by the titular nickname. In the latter, a couple uses Siri to plan a Road Trip from NYC to Santa Cruz, CA, find places to eat, find directions, ask questions about roadside attractions, find gas stations, and ultimately remind them to take such a trip again. Both ads are available for viewing on Apple’s website via the above links or in embedded form below.
A German court has rejected a request from Apple to block sales of Samsung’s Galaxy 10.1N tablet in Germany. Citing the news agency dapd, the AP reports that a state court in Duesseldorf rejected Apple’s request for an injunction barring sales of the tablet, which is itself a modified version of the Galaxy 10.1 tablet that Samsung is barred from selling in Germany due to its similarity to the iPad. This latest ruling stated that Samsung had changed the design to the extent that the 10.1N did not breach Apple’s rights or German competition laws.
Apple has asked a European telecommunication standards body to set basic rules governing how companies license their industry-standard patents. Citing a recently disclosed letter from Apple to the European Telecommunications Standards Institute, the Wall Street Journal reports that Apple said the telecommunications industry lacks consistent licensing schemes for the many patents necessary to make mobile devices, and offered suggestions for setting royalty rates.
In addition, the company claimed that the lack of clear guidelines for the licensing of patents on a fair, reasonable, and nondiscriminatory basis — otherwise known as Frand— has led many companies to demand abnormally high royalty rates from one another, and has thus led to patent infringement lawsuits. “It is apparent that our industry suffers from a lack of consistent adherence to Frand principles in the cellular standards arena,” wrote Bruce Watrous, VP and Chief IP Counsel with Apple. Apple has asked the body to set “appropriate” royalty rates for technology, relative to the number of industrywide patents required to make a device, and has also said that royalties shouldn’t be beyond a common base. Earlier this week, it was revealed that Motorola asked Apple to pay a royalty of 2.25 percent for sales of some iPhones and iPads, a deal that would have been worth over $1 billion in 2011 alone.
Apple quietly lost one of its most important iPhone and iPod executives late last year, according to a new report. Citing anonymous sources, 9to5Mac reports that David Tupman, Apple’s Vice President of iPhone and iPod engineering for over a decade, left the company late last year. Tupman was hired by the company shortly before the introduction of the original iPod, and was soon promoted to vice president of iPod engineering, a position that saw him help in the development of every iPod released to date. Tupman was also tapped to help build the iPhone, and, as a result, his title was expanded. In addition, Tupman is listed on around 70 Apple technology patents, including filings related to power and battery life management, noise-canceling ear buds, iPhone power adapters, and interaction with accessories. According to the report, a successor has yet to be named, but Apple is said to be actively pursuing a replacement from inside the company.
Apple and Walmart subsidiary Sam’s Club are in early discussions over the possibility of the latter’s warehouse club stores playing host to Apple Store-within-a-store locations. Citing anonymous sources, 9to5Mac reports that Apple is looking to expand the store-in-a-store program beyond its existing partnerships with Best Buy and Target. According to the report, a secondary plan is also being discussed, which would involve Sam’s Club selling Mac computers alongside its existing iPhone, iPad, and iPod offerings. The report notes that whatever the outcome of the discussions, it is unlikely such store-within-a-store locations would appear any time soon.
Apple has released a minor maintenance update to iBooks, addressing an issue where iBooks textbooks may not open under certain circumstances. An update to iBooks Author has also been released on the Mac App Store expressly to provide an updated version of the End User License Agreement. The original iBooks Author EULA drew criticism for a clause suggesting that Apple was potentially claiming exclusive distribution rights for any commercial work produced with the iBooks Author application, preventing users from distributing such works in other formats. The new EULA adds some necessary clarification, with an update to section 2.B.(ii) which now reads
The new EULA clause clarifies that Apple is enforcing exclusive distribution rights solely on content packaged in its own proprietary iBooks format, but that users retain their rights in their original content and may distribute this content outside of the iBookstore in any other format.
Motorola Mobility has won a second patent ruling against Apple in Germany, even as the latter has been forced to remove some iPhone and iPad models from its online store thanks to the prior ruling. Bloomberg reports that the Mannheim Regional Court found that Apple infringed upon a Motorola patent used to synchronize email accounts with its iCloud service, a ruling that allows Motorola hold Apple liable for damage. “The court has come to the conclusion that the wording of the patent does cover functions that were at issue here,” said ruling Judge Andreas Voss. Apple “wasn’t able to convince the court that it isn’t infringing.” Apple spokesman Alan Hely said that “Apple believes this old pager patent is invalid and we’re appealing the court’s decision.”
In addition, Apple overnight removed some iPhone and iPad models from its online store in Germany in response to a ruling from December claiming that the products infringe upon a Motorola patent related to GPRS technology. Specifically, the iPhone 3G, iPhone 3GS, iPhone 4, and all Wi-Fi models of the iPad are affected—according to BBC News—but not the iPhone 4S or Wi-Fi-only models of the iPad. “While some iPad and iPhone models are not available through Apple’s online store in Germany right now, customers should have no problem finding them at one of our retail stores or an authorized reseller,” Hely said. Apple has appealed the December ruling, arguing that Motorola refuses to license the industry standard patent on fair and reasonable terms.
Update: Apple has since been granted a suspension of the injunction against the iPhones and iPads mentioned previously. ”All iPad and iPhone models will be back on sale through Apple’s online store in Germany shortly” Apple told SlashGear in a statement. “Apple appealed this ruling because Motorola repeatedly refuses to license this patent to Apple on reasonable terms, despite having declared it an industry standard patent seven years ago.”
Apple has hired former Xbox Live marketing boss Robin Burrowes. According to MCV, Burrowes, who had worked at Xbox for seven years, will become Apple’s marketing head for the App Store in Europe. Prior to his work with Microsoft, Burrowes worked for MSN and HMV. As noted in the report, Burrowes is the latest in a sting of high-profile British gaming executives Apple has added to its team, with most new additions focused on the marketing of either apps or iOS hardware.