Reporting his company’s first fiscal quarter financial results, SoftBank CEO Masayoshi Son made several comments regarding the iPhone and iPad, products for which SoftBank is the exclusive carrier in Japan. Masayoshi Son said that sales of the iPhone 4 “far exceeded” his expectations, and apologized to customers for supply shortages. “We ship and we ship, and then we immediately get more new orders,” he said. He also said the company added 696,600 subscribers in the quarter, many wooed away from competitors that don’t offer Apple products. Regarding the iPad, Masayoshi Son said the tablet was selling well and drawing interest from large corporations. When discussing whether consumers should get the iPhone or iPad, he recommended they get both, noting that historical Japanese warriors often carried both a short and long sword. Despite the strong performance, SoftBank’s net profit fell 29 percent due to a tax hit.
A few details of the upcoming Canadian iPhone 4 launch have emerged. iLounge has confirmed with the Apple Store Eaton Centre in Toronto that the store will be opening at 7:00 a.m. Friday, July 30 for device’s launch and will be selling the iPhone 4 at full price unlocked, or on-contract from all four major Canadian carriers. We were told that no other Toronto-based Apple Store is expected to alter its hours, but are awaiting additional confirmation from a second store. In addition, iLounge was told that no personal shopping appointments or pre-reservations will be offered, meaning all units will be sold on a first-come first-serve basis, and no official pricing has been announced despite recent reports to the contrary. Apple will launch the iPhone 4 in Australia, Austria, Belgium, Canada, Denmark, Finland, Hong Kong, Ireland, Italy, Luxembourg, the Netherlands, Norway, New Zealand, Singapore, Spain, Sweden and Switzerland this Friday, July 30.
Update: iLounge has confirmed that the Apple Store Fairview will also be opening at 7:00 a.m., potentially indicating an early opening for all Canadian Apple Stores.
Apple is to blame for the current lack of iPad magazine subscription options, according to a new report. AllThingsD reports that Time Inc. was planning to launch a subscription version of its Sports Illustrated iPad app with payments being handled by the publisher, until Apple rejected the application at the last minute, forcing Time to sell single copies as in-app purchases. Notably, a number of the app’s negative reviews mention the lack of a subscription option. The report states that Time executives “have been going nuts” trying to find a way to get Apple to approve a subscription plan. In addition, Apple reportedly approved the company’s subscription plans prior to the iPad’s launch, during a time when Apple was communicating with Time executives. As the report notes, no other magazine publisher has gained approval to sell its own iOS app subscriptions, either.
A light leak issue may be behind the white iPhone 4 delays, a new report suggests. Citing a person familiar with the manufacturing process, Scott Moritz of The Street reports that the backlight from the white iPhone 4’s screen is leaking out around the edges of the glass and through the back of the phone. Earlier this week, Apple announced that it was delaying the launch of the white iPhone 4 until “later this year” because the units have “continued to be more challenging to manufacture than… originally expected.” A prior report suggested the delays were attributable to problems in finding the correct thickness of white paint on the front panel; Moritz, the author of this latest report, has been known to post inaccurate information about Apple.
Apple has released its iOS 4.1 Beta 2 and the accompanying SDK. Reports are varied as to whether this second version of the iPhone and iPod touch operating system includes a fix for the iPhone 4’s proximity sensor issue, a problem iOS 4.0.1 failed to address; Apple has yet to indicate one way or the other. Both the new iOS 4.1 SDK Beta 2 and pre-release builds are available now for download by paid iPhone developers from the iPhone Dev Center.
Apple has issued an official response to yesterday’s Library of Congress Copyright Office ruling that jailbreaking a smartphone did not constitute a copyright violation, and instead fell under fair use. “Apple’s goal has always been to insure that our customers have a great experience with their iPhone and we know that jailbreaking can severely degrade the experience,” an Apple spokesperson told Cult of Mac. “As we’ve said before, the vast majority of customers do not jailbreak their iPhones as this can violate the warranty and can cause the iPhone to become unstable and not work reliably.” Apple had in the past argued that jailbreaking was illegal—in that it constituted copyright infringement and a DMCA violation—and that it could enable “potentially catastrophic” network attacks.
AT&T has said that it plans to fix the software defect that left some iPhone 4 users with abnormally slow upload speeds, according to a Reuters report. After a number of iPhone 4 users reported the issue earlier in the month, AT&T claimed that the problem was caused by a software defect in its HSUPA Alcatel-Lucent equipment, and that the glitch impacted less than two percent of the company’s wireless customer base. According to AT&T spokesman Mark Siegel, the company now has a software patch that can be used to fix the defect. “This patch will be deployed on a phased basis over the next two to three weeks,” Siegel said. The iPhone 4 is currently the only smartphone sold by AT&T that utilizes HSUPA technology.
The U.S. Library of Congress’ Copyright Office has announced a decision under which jailbreaking mobile devices, most prominently the iPhone, has been deemed legal and within the user’s fair use rights. The ruling (PDF Link) states, “when one jailbreaks a smartphone in order to make the operating system on that phone interoperable with an independently created application that has not been approved by the maker of the smartphone or the maker of its operating system, the modifications that are made purely for the purpose of such interoperability are fair uses.” Apple has in the past taken a hard stance against jailbreaking, claiming that the practice was illegal—in that it constituted copyright infringement and a DMCA violation—and that it could enable “potentially catastrophic” network attacks.
In addition to addressing the issue of jailbreaking, the ruling also makes note of unauthorized unlocking of mobile phones. While the ruling itself doesn’t extend so far as to ensure “that customers have the freedom to switch wireless communications service providers,” it does state that “unlocking a mobile phone to be used on another wireless network does not ordinarily constitute copyright infringement and that Section 1201(a)(1), a statute intended to protect copyright interests, should not be used to prevent mobile phone owners from engaging in such noninfringing activity.” [via Mac Rumors]
Apple has added a new section focused on the Motorola Droid X to its smartphone antenna performance page. Apple’s testing shows the Droid X dropping from three bars down to no bars of service when phone is held in such a way that the user’s hand is blocking the majority of the bottom back portion of the device. Following Apple’s iPhone 4 press conference, Sanjay Jha, co-CEO of Motorola, said, “Consumers don’t like being told how to hold the phone ... It is disingenuous to suggest that all phones perform equally.” In addition, the prior-generation Motorola Droid was at the heart of the “iDon’t” advertising campaign aimed at the iPhone in late 2009.
The large majority of U.S.-based iPhone users are happy with AT&T, according to a new study by the Yankee Group. CNNMoney reports that 73% of iPhone users are “very satisfied” with AT&T, a number that compares favorably to how non-iPhone smartphone users feel about AT&T. The survey found the satisfaction rate of AT&T subscribers as a whole is 68%, while AT&T smartphone users were only slightly more satisfied at 69%. Analysts with the Yankee Group attributed the high iPhone numbers to a “halo effect.” “Consumers transfer the high gloss of their Apple iPhone experience to AT&T,” Carl Howe, Yankee Group analyst. “The iPhone creates a halo effect that rubs off.” Overall, the study estimates that the iPhone will be worth $1.8 billion in sales to AT&T this year, and will generate $9 billion for the company over the next five years.
TunedOn has released a new app, Texto, that allows iPhone users to setup and send pre-written canned text messages via the iPhone’s built-in SMS app. Users can choose from a list of pre-defined short messages such as “running late” or “I’m here” or create their own custom entries. Using the in-app SMS feature introduced in iOS 4, tapping on a canned message opens the iPhone’s native SMS compose screen where users can add additional text or simply send the message as-is. Users can also associate canned messages with individual contacts from the iPhone address book allowing quick access to frequently-used messages or responses. Texto is available from the App Store for $1 and requires an iPhone running iOS 4 or later. The developer indicates that an iPod touch version is currently under development.
Apple has announced that the iPhone 4 will launch in 17 additional countries this week. Currently available in the U.S., U.K., France, Germany, and Japan, the phone will launch in Australia, Austria, Belgium, Canada, Denmark, Finland, Hong Kong, Ireland, Italy, Luxembourg, the Netherlands, Norway, New Zealand, Singapore, Spain, Sweden and Switzerland this Friday, July 30. Despite ongoing concerns over the phone’s antenna design, Apple has continued to see strong demand for the phone; COO Tim Cook recently stated during the company’s third-quarter financial results conference call that Apple was selling them as fast as it could build them.
Immediately following Apple’s launch of the iPhone 4 Case Program, a case giveaway designed to reduce reception-related issues traced to the iPhone 4’s external antenna, iLounge editors discovered two billing-related errors that appear to enable some users to receive more than the correct number of free cases or refunds due. The first error appears to enable a user who ordered a Bumper case from Apple to simultaneously receive an automated refund and still be eligible for a free case using the iPhone 4 Case Program application. Separately, iLounge has discovered that a single person’s order for multiple Bumper cases led to the receipt of multiple refunds—while still remaining eligible for a free case through the application. As a result, one of our editors has already received credits and order confirmations for three cases. It’s unclear whether this is due to a lack of cross-checking the Apple IDs used to register for free cases with past iPhone 4 Bumper case orders, or quiet but intentional over-generosity on Apple’s part. We have contacted Apple to notify it of the errors and obtain a comment, and will update this article if and when we receive a response.
Apple has posted details of its iPhone 4 case program. According to the webpage, iPhone 4 users who want to receive a free case need to download the free iPhone 4 Case Program app from the App Store. Once the app is installed, users need to login with their iTunes Store account or Apple ID. The app checks the device’s IMEI and serial number to verify that the user indeed does own an iPhone 4, and lets the user choose an iPhone 4 Bumper or another case. Apple notes that for iPhone 4 purchases made before July 23, 2010, users must apply no later than August 22, 2010; otherwise, they must apply within 30 days of the iPhone 4 purchase. For advice on picking your free case, take a glance at our recommendation article.
Apple has announced that it is delaying the launch of the white iPhone 4 once again. The press release states, “White models of Apple’s new iPhone 4 have continued to be more challenging to manufacture than we originally expected, and as a result they will not be available until later this year.” The company released a similar statement exactly one month ago, promising availability in the second half of July, and did not mention any manufacturing problems during either its iPhone 4 press conference last Friday nor during its fiscal results conference call earlier this week.
Reporting its second fiscal quarter financial results, U.S. iPhone carrier AT&T has revealed that it handled 3.2 million iPhone activations during the period. That number includes some sales of the iPhone 4; AT&T claims that preorder sales of the iPhone 4 were 10 times higher than the first day of preordering for the iPhone 3GS a year earlier. In addition, the 3.2 million activations is a new quarterly record for AT&T, with about 27%—roughly 864,000—of those activations representing customers who were new to AT&T.
Following a response from Nokia on Apple’s claims that signal attenuation is a problem for all smartphones, Apple has added a section covering the Nokia N97 mini to its smartphone antenna performance page. “Nokia has invested thousands of man hours in studying how people hold their phones and allows for this in designs, for example by having antennas both at the top and bottom of the phone and by careful selection of materials and their use in the mechanical design,” Nokia said in a statement. Apple’s antenna performance page, posted last Friday after Apple’s iPhone 4 press conference, originally compared the performance of the iPhone 4 to the BlackBerry Bold, HTC Droid Eris, Samsung Omnia II, and iPhone 3GS, and led to a similar response from BlackBerry-maker RIM’s co-CEOs Mike Lazaridis and Jim Balsillie.
China Telecom has indicated that it would like to offer both the iPhone and iPad at some point. Citing an unnamed company official, the Wall Street Journal reports that China Telecom would like to offer the iPhone in order to attract users to its 3G services, but that it faces a hurdle in doing so due to its use of CDMA technology. “If we can have an iPhone, that would be good, but we’ll just wait and see” whether Apple comes out with a CDMA version of the phone, said the official. The report notes that people familiar with the situation have said Apple is working on a CDMA iPhone, but it has yet to announce any plans to introduce such a device.
Reporting its third quarter 2010 financial results today, Apple said it sold 9.41 million iPods during the quarter—an eight percent unit decrease compared to the 10.2 million iPods sold in Q3 2009, albeit with a four percent increase in revenue. It also sold 8.4 million iPhones in the quarter, up 61% from the year-ago quarter, and 3.27 million iPads, the latter alone contributing $2.166 billion in revenue during its first quarter of supply-constrained availability. The company posted overall revenue of $15.7 billion and a net quarterly profit of $3.25 billion, or $3.51 per diluted share, compared with revenue of $9.73 billion and net quarterly profit of $1.83 billion, or $2.01 per diluted share in Q3 2009.
“It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4,” said Steve Jobs, Apple’s CEO. “iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year.”
“We’re really pleased to have generated over $4 billion of cash during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2010, we expect revenue of about $18 billion and we expect diluted earnings per share of about $3.44”
Apple has started to send out an iPhone 4 satisfaction survey to select customers. Boy Genius Report has published screenshots of the survey online, which includes questions asking the users’ ages, overall satisfaction and satisfaction with certain individual features, whether they would recommend the phone, whether it’s the first iPhone they’ve owned, what brand of mobile phone it replaced, whether they use Windows or Mac, and whether they use their phones for personal or work-related reasons.