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Motorola CEO: Apple building smart phone

  • September 29, 2005
  • Apple,

Motorola CEO Ed Zander added to the ongoing speculation of Apple’s intent to create its own mobile phone with comments today to CNET News.com. “We know that they are going to build a smart phone—it’s only a matter of time,” he said after his presentation today at Technology Review’s Emerging Technologies Conference at the Massachusetts Institute of Technology.

Also, as a Motorola representative did earlier this week, Zander downplayed his comments about the iPod nano, claiming they were “taken completely out of context. We have a great relationship with Apple. I’ve known Steve Jobs for 15 years. Sure, there is some tension there. We have the Rokr, and they have the Nano. They are a competitor as well as a partner.”

No keynote at Apple Expo Paris

  • September 5, 2005
  • Apple,

Contrary to earlier reports, Apple CEO Steve Jobs will not be delivering a keynote presentation at Apple Expo in Paris this month. The show’s organizers updated the Apple Expo website today with a brief message saying that there would be no keynote at the event. Apple confirmed the news, but said Jobs and other Apple executives would be at the event to host a Q&A session for media.

“While this year’s Apple Expo will not feature a formal keynote presentation, members of Apple’s executive team will be hosting a Q&A session for members of the media on the opening day and will be at Apple Expo throughout the week,” an Apple spokesperson told iLounge.

As previously reported, Apple Expo takes place September 20th through the 24th. There has been much speculation that Apple would unveil new products at the event. With no keynote, it is unlikely that the company will make any introductions at Apple Expo this year, and puts even more significance on Wednesday’s special event in San Francisco.

Target debuts branded iPod case

imageTarget has introduced a new iPod case as part of the branded products in its Red Hot Shop. The Cosmic Flowers iPod case is made from white patent-PVC and features black and white “swirling psychedelic flowers” with a red Target bullseye logo. It fits fourth-generation iPods, and offers a clear screen protector, a red patent-PVC wristlet strap, and a clasp to clip the case onto a belt loop or bag. Target said the new iPod case would ship later this month for $14.

“Play it safe, if you must,” says Target. “Put your iPod in a case that’s the equivalent of slacks. Jingle your change. You’re responsible. You’re established. But your bumpin’ tracks and rebellion bass really deserve more attitude than that. Something unique, expressive. And that’s exactly where this beauty enters into it.”

Eminem’s label settles lawsuit over Apple ad

The Detroit News reports that the record label of Eminem has agreed to an undisclosed financial settlement in its lawsuit over the use of one of the rapper’s songs in an Apple ad that appeared on MTV. “The parties were able to reach an amicable resolution,” said Howard Hertz, lawyer for Eight Mile Style and Eminem.

The commercial for the iTunes Music Store featured a young boy singing Eminem’s “Lose Yourself” and aired on MTV beginning in July 2003. In February 2004, Eight Mile Style filed a copyright infringement lawsuit against Apple, MTV and others claiming that Apple used the hit song without permission. Eminem’s lawyers said at the time that “even if he were interested in endorsing a product, any endorsement deal would require a significant amount of money, possibly in excess of $10 million.”

Jobs defends Apple’s environmental efforts

imageAt Apple’s annual shareholders meeting Thursday, chief executive Steve Jobs defended his company’s environmental efforts after being questioned about recycling policies.

While activists picketed outside Apple headquarters, Jobs said inside that the company takes its environmental responsibilities seriously and noted that the company accepted more than 1,500 tons of old products in 2004 through its recycling program.

The activists — including one who dressed up as an iPod with the words “My trendy toy turned toxic trash today” — focused on the iPod and the device’s hard-to-replace battery. “Most consumers are just going to throw it away and get a new one,” said Sheila Davis, director of the Silicon Valley Toxics Coalition.

Jobs said that consumers often throw old batteries away, and pointed out that tens of thousands of iPod owners have already gotten their batteries replaced through Apple’s $99 program and that the company properly disposes of the old ones.

Jobs also admitted that the iPod contains a small amount of lead, but that much more is found in other computer and conusmer electronics products including cathode-ray tube (CRT) monitors.

Apple ships 5.3 million iPods in Q2 [updated]

Reporting its fiscal 2005 second quarter financial results on Wednesday, Apple announced that it shipped more than 5.3 million iPods during the quarter — about 700,000 more than it shipped in the brisk holiday quarter and about 4.5 million more than it did in the year-ago quarter. The total number of iPods sold now stands at over 15 million.

Apple’s net profit for the quarter was $290 million, or 34 cents per share, on $3.24 billion in revenue. These results compare to a profit of $46 million, or 6 cents a share, last year.

“We are delighted to report a record second quarter for Apple in both revenue and earnings,” said Apple CEO Steve Jobs. “Apple is firing on all cylinders and we have some incredible new products in the pipeline for the coming year, starting with Mac OS X Tiger later this month.”

Apple said its music products accounted for 38 percent of its total revenue for the quarter. All iPod models brought in more than $1.014 billion in revenue for Apple during the quarter, an increase of 284 percent in revenue. Apple’s “Other Music Products” category, which includes the iTunes Music Store, iPod related services and accessories, accounted for $216 million of the quarter’s revenue, a 260 percent increase year-over-year.

Apple’s Steve Jobs again gets salary of $1

pic Apple’s Steve Jobs again received a salary of $1 in 2004, according to an annual proxy statement filed Tuesday with the Securities and Exchange Commission. Jobs also did not receive stock options or restricted stock from Apple last year. “For years, Jobs, who co-founded Cupertino, California-based Apple, has taken a salary of $1,” reports Reuters. “In March 2003, Jobs voluntarily canceled all of his outstanding options, excluding those granted to him in his capacity as director.” Jobs is Apple’s second-largest shareholder, with more than 10 million shares, or 1.23 percent of the company’s outstanding share count, according to Marketwatch.

Did the iPod convert you to Mac? Someone wants to know…

If your iPod helped convince you to join the Mac community, .(JavaScript must be enabled to view this email address) wants to hear from you. He wrote iLounge with the following request, and we’d love to help him out:

“I am currently working on a project for Apple.

We are looking to speak with people who have come to Mac through owning an iPod. These are people who have been or currently are PC users; they own an iPod and love it so much that they’ve bought a Mac.

Specifically we are looking for people between the ages of 14-35…young professionals, parents, students/etc…approachable, real people. I would like to speak with anyone who fits this description.”

All you need to do, he explains, is send him a quick e-mail .(JavaScript must be enabled to view this email address) with your name and contact information. While you’re welcome to include a brief version of your story, there’s no need to do so.

Apple faces patent lawsuits over iTunes, iPod

Apple has recently been confronted by two companies that say Apple is infringing on their patents with its popular iTunes and iPod products.

A Hong Kong-based company called Pat-rights claims its holds a patent on the digital rights management (DRM) process that Apple uses in the iTunes Music Store and iPod. The company is demanding 12 percent of Apple’s gross revenue from iTunes and iPods. Pat-rights said it will file a lawsuit on March 21 if the company and Apple do not reach an agreement before then.

Meanwhile, Illinois-based Advanced Audio Devices, has reportedly sued Apple, claiming that the company’s iPod violates one of its patents. A Chicago Tribune article is scant on details, but the paper does say that Advanced Audio told Apple in December that the iPod infringed on its “Music Jukebox” patent. Apple “ignored [Advanced Audio’s] attempt to seek a business resolution,” the federal suit said.

Apple sued by French consumer group over DRM

  • February 14, 2005
  • Apple,

A French consumer group has sued Apple and Sony, claiming their online music stores violate European anti-trust laws. The Register reports: “Like California resident Thomas Slattery, who filed a similar complaint against Apple in January, Paris-based UFC-Que Choisir claims that Apple’s iTunes Music Store and Sony’s Connect service are anti-competitive because they only work with the companies’ own music players.”

“Apple can also argue that the French government’s anti-trust watchdog has already ruled that it has a right to maintain a proprietary link between its music store and the iPod. Last November, the watchdog dismissed an attempt by Virgin’s French retail subsidiary, VirginMega, to force Apple to license the Mac maker’s FairPlay DRM technology, which would be essential to allow any third-party device to play iTMS-downloaded songs.”

Apple announces two-for-one stock split

  • February 11, 2005
  • Apple,

Apple on Friday announced that its board of directors has approved a two-for-one stock split that will increase the number of authorized common shares to 1.8 billion from 900 million. Apple said that each shareholder at the close of business on Feb. 18, 2005 will receive one additional share of stock for every share they own. Trading will begin on a split-adjusted basis on Feb. 28, 2005.

Shares of Apple have nearly quadrupled in value over the last year on the success of the iPod. Last month, the company easily beat analysts’ expectations with its first quarter financial results. Apple posted a net profit of $295 million, or 70 cents a share, compared to income of $63 million, or 17 cents per share, in the prior year. Analysts surveyed by Thomson First Call had expected the company to earn 49 cents a share.

Apple stock closed Thursday’s session down 38 cents at $78.36. It reached a 52-week high of $81.99 on Wednesday.

Apple’s Steve Jobs talks iPod in interview

  • February 7, 2005
  • Apple,

In an interview with Fortune, Apple CEO Steve Jobs answers the question of how the iPod has changed Apple. “It feels great,” Jobs says. “We’re having fun. Most of us can’t wait to get to work in the morning. But it’s not like Apple has somehow morphed into a mass-market consumer electronics company. Our DNA hasn’t changed. It’s that mass-market consumer electronics is turning into Apple.”

Jobs also discusses how young people are migrating to iPods and matching portable speakers from larger stereos made by electronics giants.

“You or I move into a new house, and the first thing we do is call the phone company to get our land line turned on. Kids, they just move in with their cell phones. Stereos are the same: Kids aren’t getting stereos; they’re getting speakers for their iPods,” Jobs says. “That’s become the audio market. People are buying iPods and Bose speakers instead of a JVC or Sony stereo system. And those guys have never come to us and said, ‘Could we work with you on the iPod?’ Some companies are prisoners of their point of view.”

Apple named top global brand thanks to iPod

  • January 30, 2005
  • Apple,

Apple has been named the most influential brand in a poll of branding professionals thanks to its hugely popular iPod product line. Apple topped both the global and North American rankings in the survey of nearly 2,000 ad executives, brand managers and academics by Brandchannel, displacing search engine Google from last year’s top spot.

“Apple’s just done an extraordinary job with innovation, technology and design. The iPod is what has put Apple in the lead this year,” Brandchannel editor Robin Rusch said. “Sony has had less luck tying together its products as a lifestyle. From a branding perspective, they haven’t caught up with Apple’s design and ability to capture the imagination.”

Rounding out the top five were: Swedish furniture chain Ikea, premium coffee chain Starbucks, and Arabic media channel Al Jazeera.

Apple seeking two iPod interns

  • January 25, 2005
  • Apple,

Apple is looking for two interns for its iPod software team, according to new postings on the company’s jobs site. “The iPod SW Platform team is seeking an enthusiastic intern. This position requires a self-motivated, flexible individual with strong technical and communication skills who can contribute in a team environment.” Apple said duties may include: development of testing tools and automated testing solutions; prototyping new features and capabilities; bug isolation and reporting; and writing and managing test cases.

Apple posts iPod shuffle, other tutorial pages

  • January 16, 2005
  • Apple,

Speaking with iLounge at last week’s Macworld Expo in San Francisco, Apple representatives noted that the company has posted new tutorials for the iPod, iPod mini, and iPod shuffle on its web site. In addition to being visually attractive, the tutorials have become increasingly useful and easy to understand.

Apple reports record earnings as iPod sales soar

  • January 12, 2005
  • Apple,

Apple on Wednesday posted its highest quarterly revenue and net income in the company’s history thanks to strong holiday sales of iPods. Apple greatly exceeded Wall Street expectations with a net profit of $295 million, or 70 cents a share, for its fiscal 2005 first quarter ended December 25, 2004. Revenue for the quarter was $3.49 billion, up 74 percent from $2 billion in the year-ago quarter.

Along with its record earnings, Apple released several iPod and music sales details. The company reported that it sold more than 4,580,000 iPods during the quarter, representing a 525 percent increase in iPod units compared to this time last year. All iPod models brought in more than $1.2 billion in revenue for Apple during the quarter. Apple’s music division, which includes the iTunes Music Store, iPod services and accessories, accounted for $177 million of the first-quarter’s revenue, a 277 percent increase year-over-year.

Apparently in response to the release of these financial results, Apple’s stock (Nasdaq:  AAPL) is up an impressive 11.82% to 73.20 in after-hours trading.

Forbes: ‘Apple bites the fans that feed it’

Forbes senior editor Lisa DiCarlo and Boston attorney Bruce Sunstein have spoken out on Apple’s recent lawsuit against Mac rumor site Think Secret, which has recently posted reports on upcoming Apple products such as a low-cost iMac, a productivity suite, and a flash-based iPod. “It is widely acknowledged that Apple enjoys the kind of slavish devotion among its customers—and fawning adoration from the press—of which other companies don’t even dare to dream,” writes DiCarlo. “That is, it’s acknowledged by everyone but Apple. How else to explain Apple’s latest attempt to clamp down on, rather than embrace, its fanatical fans?” Sunstein, who specializes in intellectual property law, said the case will only result in damage to Apple’s reputation. “A fair amount of buzz doesn’t hurt Apple’s business,” he said. “And, to the extent that Apple sues its customer base; it has to think twice about biting the hand that feeds it.”

Apple hit with antitrust lawsuit over iTunes, iPod

A displeased customer of Apple’s iTunes Music Store is suing the company, alleging it broke antitrust laws by allowing songs purchased from the store to only work with the iPod, shutting out competitors. “The suit was filed on Monday in the U.S. District Court in San Jose,” reports Reuters. “One antitrust expert called it a long shot, but Californian Thomas Slattery is hoping for unspecified damages for being ‘forced’ to buy an iPod. The key to such a lawsuit would be convincing a court that a single product brand like iTunes is a market in itself separate from the rest of the online music market, according to Ernest Gellhorn, an antitrust law professor at George Mason University. There is legal precedent for such claims, but courts usually conclude competing products as viable alternatives, Gellhorn said.”

Apple sues over unannounced product leak

  • December 17, 2004
  • Apple,

Apple is suing unnamed individuals who leaked details about an unannounced product by posting detailed information on the Web. Apple’s complaint, which was filed with the Santa Clara County California Superior Court on Dec. 13, alleges that “an unidentified individual, acting alone or in concert with others, has recently misappropriated and disseminated through Web sites confidential information about an unreleased Apple product.” Apple said it did not know the “true names or capacities, whether individual, associate, corporate or otherwise,” of the defendants, but that it would amend the complaint once they have been discovered.

Apple, Motorola on track to debut mobile phone

  • December 16, 2004
  • Apple,

Apple and Motorola could soon unveil the mobile phone they have been developing to play music from Apple’s iTunes Music Store. “We’ve said we have something coming on this in the first half of 2005 and we’re definitely on schedule for that. Hopefully you’ll be able to see more about it soon,” Eddy Cue, vice president of applications at Apple, told Forbes. “What we’ve talked about is a something that is valuable for the mass market,” Cue said. “It has to be a phone in the middle-tier of the market, not a $500-tier phone. It has to be very seamless to use. And we’re very happy with the results.”

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