Apple has won an initial ruling in its patent dispute with Elan Microelectronics. Reuters reports that Judge Paul Luckern of the U.S. International Trade Commission (ITC) said in his initial decision that Apple did not violate Elan’s patents related to touchpad technology. Elan filed a complaint against Apple with the ITC in March 2010, claiming that Apple was violating its patents related to touch-sensitive input devices with multi-touch capabilities, specifically with the iPhone, iPod touch, MacBook laptops, the Magic Mouse, and the iPad; the ITC agreed to investigate the claims roughly a month later. The full ITC will now need to rule on whether to accept or reject Luckern’s initial decision; that ruling is expected in August.
Time, Inc. and Apple have reached a deal that allows subscribers to the print editions of Sports Illustrated, Fortune, and Time to download the iPad versions of the magazines free of charge. The Wall Street Journal reports that the deal is an expansion of a similar arrangement for Time’s People magazine, which has allowed print subscribers free access to the iPad edition since last August. Time and other major publishers still have yet to agree with Apple on terms for selling subscriptions to iPad editions of their publications, mainly due to Apple’s stance on sharing user information with the publishers, according to the report. Time executives told the WSJ that Time general counsel Maurice Edelson has quietly been leading talks between the publisher and Apple, meeting frequently with Apple vice president of Internet services Eddy Cue. The same people said this latest deal is a sign that the two companies are moving closer.
Samsung has expanded its legal battle with Apple, filing a lawsuit against the iPhone-maker in U.S. federal court. Bloomberg reports that Samsung is claiming that Apple infringes on 10 of its patents related to “fundamental innovations that increase mobile device reliability, efficiency, and quality, and improve user interface in mobile handsets and other products.” “Samsung is continuing to respond actively to the legal action taken against us,” the company said in an statement. Apple first sued Samsung on April 18, stating, “[r]ather than innovate and develop its own technology and a unique Samsung style for its smart phone products and computer tablets, Samsung chose to copy Apple’s technology, user interface and innovative style in these infringing products.” Samsung quickly countersued in South Korea, Japan, and Germany, claiming infringement on 10 patents by the iPhone and iPad; according to recent comments made by Apple COO Tim Cook, Apple is Samsung’s biggest customer and considers them a valued component supplier, and that he expects their strong relationship to continue despite the lawsuit.
Apple has purchased the iCloud.com domain name for $4.5 million, according to a new report. Citing an anonymous tipster, GigaOM reports that iCloud.com was until recently used by Sweden-based Xcerion for its cloud-based storage service, which has since been rebranded as CloudMe. The source, who is said to be familiar with the company, said Xcerion sold the iCloud domain to Apple for $4.5 million, although the Whois database still lists Xcerion as the owner of the domain. As noted in the article, Apple is reportedly working on a cloud-based “locker” for content that could be branded as iCloud; it could also be considering the name for its upcoming cloud-based music service.
Update: Citing sources “in position to know,” AllThingsD reports that it has “confirmed” Apple’s purchase of the iCloud.com domain name.
Ina Fried of AllThingsD has conducted a phone interview with Apple CEO Steve Jobs, Senior Vice President of Worldwide Product Marketing Phil Schiller, and Senior Vice President of iOS Software Scott Forstall, during which the Apple executives a number of comments relating to the iOS location data issue, as well as the white iPhone. For the most part, the executives simply reiterated points the company made in its earlier Q&A document, but Jobs did reveal that he expected Apple to testify before Congress about such technologies, and that he thinks it is “great that they are investigating this.” He also briefly mentioned the traffic service alluded to in the aforementioned Q&A document, saying “that is all we are going to mention at this point in time before we have something to announce,” and brushed aside a question about his timeline for returning to work full-time at the company.
Discussing the white iPhone 4, Schiller described the process of making the handset as “challenging,” saying, “it’s not as simple as making something white. There’s a lot more that goes into both the material science of it–how it holds up over time… but also in how it all works with the sensors.” He added that while there were unexpected interactions between the color and various internal components, the white paint also required more UV protection than the black model. “We thought we were there a year ago, or less than that, when we launched the iPhone 4 and we weren’t,” Schiller said, adding that the wait allowed them to deliver a product that was up to expectations. Jobs also noted that the work necessary to bring the white iPhone 4 to market benefitted the company in other areas, saying, “[w]e obviously think about this in a generic way because you have a white iPad.” Apple will launch the white iPhone 4 tomorrow.
Apple has announced that it will launch the iPad 2 in 12 more countries this week. According to the company, the iPad 2 will launch in Japan on Thursday, April 28, and will come to Hong Kong, India, Israel, Korea, Macau, Malaysia, Philippines, Singapore, South Africa, Turkey and the UAE on Friday, April 29. In addition, the company has announced that it will officially launch iPad 2 with Wi-Fi in China on Friday, May 6; further international availability will be announced at a later date.
Apple has posted a ten-question Q & A document discussing the collection of location data on iOS devices. In response to the first question, “Why is Apple tracking the location of my iPhone?”, the company writes, “Apple is not tracking the location of your iPhone. Apple has never done so and has no plans to ever do so.” The second question asks why, then, is everyone so concerned; Apple responds by saying that users are confused, partially because creators of new technology—including itself—have not provided enough education about such issues. In response to the third question, “Why is my iPhone logging my location?”, Apple explains that the iPhone—and presumably other iOS devices—are not logging locations, but “maintaining a database of Wi-Fi hotspots and cell towers around your current location, some of which may be located more than one hundred miles away from your iPhone, to help your iPhone rapidly and accurately calculate its location when requested.”
Apple blames the size of the current on-device database on a bug it has uncovered, which is also to blame for the continued updating of the database after Location Services is turned off. Interestingly, Apple admits to “collecting anonymous traffic data to build a crowd-sourced traffic database with the goal of providing iPhone users an improved traffic service in the next couple of years.” In response to the final question, “Does Apple believe that personal information security and privacy are important?”, the company responds, “Yes, we strongly do. For example, iPhone was the first to ask users to give their permission for each and every app that wanted to use location. Apple will continue to be one of the leaders in strengthening personal information security and privacy.”
Apple states that it will release a free iOS update “in the next few weeks” that will reduce the size of the crowd-sourced Wi-Fi hotspot and cell tower database cached on the iPhone, cease backing up this cache, and delete the cache entirely when Location Services is turned off, and promises that the next major iOS software release will encrypt the database on the iPhone.
Apple has announced that it will officially launch the white iPhone 4 Thursday, April 28. According to the company, the handset will be available in Austria, Australia, Belgium, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Luxembourg, Macau, Netherlands, New Zealand, Norway, Singapore, South Korea, Spain, Switzerland, Sweden, Taiwan, Thailand, the U.K., and the U.S. tomorrow, and will come to “many more” countries around the world soon. The press release notes that the white model will be available from both AT&T and Verizon in the U.S., suggesting that other CDMA carriers worldwide may carry it as well. “The white iPhone 4 has finally arrived and it’s beautiful,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “We appreciate everyone who has waited patiently while we’ve worked to get every detail right.” Pricing for the white iPhone 4 will be the same as for the black model, or $199/16GB or $299/32GB with a two-year commitment on AT&T or Verizon.
Amazon has filed a response in its lawsuit with Apple, in which the latter accuses Amazon of trademark infringement and unfair competition for its use of the “App Store” trademark. In its response, which has been published online by GeekWire (PDF Link), Amazon admits to opening a software store with the name Appstore, but denies that Apple coined the App Store mark, and claims that the term “app store” is generic and unprotectable. It also points to a comment made by Apple CEO Steve Jobs in October 2010, in which he uses the term “app store” in a generic sense, saying that Apple’s App Store is “the easiest-to-use, largest app store in the world, preloaded on every iPhone.” Notably, Microsoft has used similar arguments in its opposition to Apple’s “App Store” trademark, the review of which is still ongoing. Amazon is asking the judge to dismiss the case, and to declare that its use of the words “app store” does not infringe or dilute any rights, trademark or otherwise, of Apple. [via Mac Rumors]
Apple has been sued in federal court over iOS 4’s ability to track device location. Bloomberg reports that Vikram Ajjampur, a Florida-based iPhone user, and William Devito, a New York iPad user, have filed suit against Apple in Tampa, FL, accusing Apple of invasion of privacy and computer fraud, and seeking an order barring the alleged location data collection. The plaintiffs are seeking class action status to represent U.S. customers whose devices run iOS 4, a group that could include one-third to one-half the country’s 60 million iPhone users, according to Aaron Mayer, an attorney for the plaintiffs. “We take issue specifically with the notion that Apple is now basically tracking people everywhere they go,” Mayer told Bloomberg in a phone interview. “If you are a federal marshal you have to have a warrant to do this kind of thing, and Apple is doing it without one.”
A report from last week revealing that iOS 4 devices regularly record their positions to hidden files has sparked a wave of inquiries from government agencies and representatives. According to the New York Times, Senator Al Franken of Minnesota and Representative Ed Markey of Massachusetts have contacted Apple separately, each asking for an explanation as to why the location data was being collected and stored, and what it was being used for. The same report indicates that various agencies in Germany, Italy, and France are planning investigations and/or inquiries into the matter, while Politico reports that the U.S. Federal Communications Commission is also looking into it. Separately, Bloomberg reports that South Korea’s Korea Communications Commission has also asked Apple how often the location data is collected and saved, whether users have a choice over whether it is saved or deleted, and whether the information is being stored on the company’s servers.
The Wall Street Journal has tested the feature on an iPhone with its Location Services turned off, and discovered that the location data is still recorded despite the setting, although the coordinates recorded were not from the exact locations the phone traveled, which is consistent with prior results. Finally, Mac Rumors reports that a reader emailed Apple CEO Steve Jobs about the issue, saying, “Could you please explain the necessity of the passive location-tracking tool embedded in my iPhone? It’s kind of unnerving knowing that my exact location is being recorded at all times. Maybe you could shed some light on this for me before I switch to a Droid. They don’t track me.” Jobs responded in his typically terse style, saying, “Oh yes they do. We don’t track anyone. The info circulating around is false.” While it is obvious that iOS 4 devices are indeed tracking and recording users’ locations, it’s possible Jobs was referring to the fact that the data does not appear to be collected by Apple, thus supporting Jobs’ “we don’t track anyone” claim.
Apple has already secured deals with two of the four big music labels for its upcoming cloud-based music service, according to a new report. Citing anonymous sources, AllThingsD reports that the first two deals were signed within the last two months, and that Apple’s Vice President of iTunes Eddy Cue will be in New York today to try and finalize the remaining deals. “They’ve been very aggressive and thoughtful about it,” said one industry executive. “It feels like they want to go pretty soon.” The report also states that the general idea of the service is for Apple to let customers store songs they’ve purchased from the iTunes Store, as well as other songs stored on their hard drives, for listening across multiple devices; it adds that the deals Apple is signing will let it store a single master copy of a song on its servers for sharing with multiple users, while Amazon’s service works much more like an external hard drive. The report gave no clues as to when Apple might launch the service, although prior reports have stated it could launch as early as June.
Apple has released iBooks 1.2.2, the latest version of its e-Reader software for iOS. According to the company’s release notes, version 1.2.2 addresses issues playing video included with enhanced books from the iBookstore, resolves a problem where some books open with a different font than expected, makes iBooks more responsive when navigating books with many items in their table of contents, and other “important stability and performance improvements.” iBooks 1.2.2 requires iOS 3.2 or later and is available now as a free download from the App Store.
Following Apple’s filing of a lawsuit against Samsung in the U.S., Samsung has countersued the company, claiming infringement on 10 mobile technology patents by the iPhone and iPad. Samsung filed the suits in its home country of South Korea, Japan, and Germany, and said the patents involve power reduction during data transmission, 3G technology for reducing errors while transmitting data, and wireless data communication technology, according to Reuters. “Samsung is responding actively to the legal action taken against us in order to protect our intellectual property and to ensure our continued innovation and growth in the mobile communications business,” the company said in a statement. During the company’s Second Quarter 2010 Financial Results Conference Call, Apple COO Tim Cook addressed the lawsuit against Samsung, saying that Apple is Samsung’s biggest customer and considers them a valued component supplier, and that he expects their strong relationship to continue despite the lawsuit.
Apple has “completed work” on its cloud-based music storage service and is set to launch it ahead of a competing service from Google, according to a new report. Citing two people familiar with both companies’ plans, Reuters reports that the new service will allow iTunes customers to store their songs on a remote server, and access them from anywhere they have an Internet connection. The report adds that Apple has yet to sign any new licenses for the service and that the major music labels are hoping to secure deals ahead of the service’s launch, although they have not yet been told when that will be. Apple has reportedly been working on the music service for some time, which may or may not be tied into a revamp of MobileMe.
During Apple’s Second Quarter 2011 Financial Results Conference Call, Apple CFO Peter Oppenheimer and Apple COO Tim Cook made several comments concerning its media-related products, including the iPod, iPhone, and iPad. In his opening statements, Oppenheimer said that it was the highest March quarter in revenue and earnings ever for the company, with the highest year-over-year revenue growth ever generated. The numbers were boosted by an single-quarter record for iPhone sales, plus “robust” iPad sales—he said the company was “thrilled” with the iPad’s momentum—and 28% year-over-year growth in Mac sales, which totaled 3.76 million.
Oppenheimer also said that the iTunes Store had its best quarter ever, and the iBookstore saw 17,000 eBooks added during the quarter; the iBookstore now offers eBooks from 2,500 publishers, and has seen over 100 million downloads. While overall iPod sales were down, they were ahead of internal expectations, and were comprised of 60 percent iPod touch units, enabling Apple to maintain a 70 percent share of the MP3 player market. Overall, just under 189 million iOS devices had been sold, cumulatively, by the end of the quarter.
Reporting its second quarter financial results today, Apple said it sold 9.02 million iPods during the quarter — a 17 percent decrease compared to the same quarter last year. Apple also sold 18.65 million iPhones in the quarter, a 113 percent increase year-over-year, and up from the 16.24 million units sold in the holiday quarter. Apple also sold 4.69 million iPads during the quarter, down from 7.33 million units in the prior quarter. The units sales of iPhones, iPods, and iPads bring the cumulative unit sales for the three device categories to 108.55 million, 307.02 million, and 19.48 million, respectively. The company posted revenue of $24.67 billion and net quarterly profit of $5.99 billion, or $6.40 per diluted share, compared with revenue of $13.5 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share in Q2 2010.
Sales of Other Music Related Products + Services were up 23% over the year-ago quarter, and up 14% from Q1 2011, to $1.63 billion total. That category includes iTunes Store sales, iPod services, and revenues from Apple and third-party iPod accessories. International sales accounted for 59 percent of the quarter’s revenue.
“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said Steve Jobs, Apple’s CEO. “We will continue to innovate on all fronts throughout the remainder of the year.”
“We are extremely pleased with our record March quarter revenue and earnings and cash flow from operations of over $6.2 billion,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $5.03.”
Apple has dropped its estimated shipment wait times on the iPad 2 to 1-2 weeks in many of the countries where the device is available. As noted by Mac Rumors, the new 1-2 week estimate is now posted on Apple’s online stores in the U.S., Canada, Mexico, Australia, and New Zealand, while estimates on its European stores remain at 2-3 weeks. Apple last dropped its wait times to 2-3 weeks on April 4.
Apple has asked a federal judge to dismiss a consumer antitrust lawsuit related to the pairing of the iPod to the iTunes Music Store. Apple attorney Robert Mittelstaedt told U.S. District Judge James Ware that blocking iPod music downloads that used competitors’ software was intended to protect iTunes and iPod customers’ quality of experience. “Apple’s view is that iPods work better when consumers use the iTunes jukebox rather than third party software that can cause corruption or other problems,” Mittelstaedt said at a hearing. The request comes just days after Apple CEO Steve Jobs, still on medical leave from the company, met with plaintiff attorneys for a court-ordered deposition. The case, which dates back to 2005, revolves around RealNetworks’ Harmony technology, which promised to allow copy-protected music sold on its online store to be played on iPods. The technology was introduced in July 2004, and Apple took just five days to announce software updates to render the technology inoperable, saying its was “stunned” that Real had “adopted the tactics and ethics of a hacker to break into the iPod.” Judge Ware is expected to rule on Apple’s dismissal request by May.
Apple has released iTunes 10.2.2, the latest version of its media management software. According to Apple’s release notes, 10.2.2 includes a number of “important” bug fixes; it addresses an issue where iTunes may become unresponsive when syncing an iPad, resolves an issue which could cause syncing photos to an iOS device to take longer than necessary, fixes a problem where video previews on the iTunes Store could skip while playing, and addresses “other issues that improve stability and performance. iTunes 10.2.2 is available now via Apple’s Software Update utility or as a direct download from apple.com/itunes and is a 24.5MB download for Mac users.