Google pays Apple more than $100 million annually for its position as the default Internet search engine on the iPhone, according to a new report. Citing a source familiar with Apple’s operations, Silicon Alley Insider reports that Apple receives more than $100 million a year from Google as part of a revenue sharing deal, but that recent deals between the two companies have become increasingly contentious. According to the source, the original deal between the two companies for Google Maps on the iPhone was reached in just two weeks, while a similar deal for the iPhone 3G, negotiated just a year later, was a six-month negotiation “full of acrimony” as Google wanted access to data generated by Maps users, which Apple did not want to give up. A report from last month indicated that Apple was in talks with Microsoft over the possibility of the latter’s Bing service replacing Google as the default search engine on the iPhone.
A temporary change to the way in which the iPod touch and iPhone Safari browser handles direct RSS feed links caused a one-day outage, but was resolved following publication of the original version of this news article. Since the launch of the first iPhone, clicking on a direct RSS link in the mobile version of Safari would take a user to a specific mac.com URL—reader.mac.com—where the feed would be parsed and displayed. During the outage, clicking on a direct RSS link instead directed users to a me.com URL, which went through several redirects before displaying a page with information about Apple’s MobileMe service and a link to setup instructions. As Apple has shifted much of its former .Mac online service to become MobileMe, including e-mail and web addresses, it appears that Apple plans to migrate the RSS reader service over to a me.com domain.
Updated: This article originally noted that Apple appeared to have ceased support for its Mac.com-based RSS feed reader for the MobileSafari browser of the iPhone and iPod touch, based on a reader report. Following the publication of this article, the Mac.com-based RSS feed reader for iPhone and iPod touch began functioning properly, suggesting the feature was hit by a temporary outage and not completely removed.
Adobe has revealed there were more than 7 million attempts by iPhone and iPod touch users to download Flash from Adobe.com in December. Discussing the matter with the San Francisco Chronicle, Adobe claimed that the stat clearly shows demand for Flash from iPhone and iPod touch users, despite Apple’s decision not to support the technology. For comparison, Adobe said the number of iPhone and iPod touch Flash download attempts was only 3 million in June 2009. It is unclear whether the number counts multiple attempts by the same user, although it seems likely given the wording of their statement.
Norwegian browser company Opera Software has announced plans to show off a version of its Mini browser for the iPhone and iPod touch next week at the Mobile World Congress show in Barcelona, according to a Reuters report. The company claims the browser will offer download speeds up to six times faster than the built-in MobileSafari browser, and could cut data traffic by up to 90 percent. Opera also said it saw no reason why its browser should be rejected by Apple. “We have not submitted it yet to the Apple App Store. However, we hope that Apple will not deny their users a choice in Web browsing experience,” said Jon von Tetzchner, co-founder of Opera. Apple in January began allowing some third-party browsers into the App Store, but those that have been approved thus far use WebKit, the same built-in browser engine that powers Safari, and not a third-party solution.
According to new data released by comScore, the iPhone accounts for more than a quarter of U.S. smartphone market. As of December 2009, BlackBerry maker Research In Motion led U.S. smartphone platforms, with a 41.6% share—down from 42.6% in September 2009—while Apple ranked second with 25.3% of the market, up 1.2% percent from September. Microsoft came in third, with 18% of the market, down 1% from September, followed by Palm, which accounted for 6.6% of the market, down from 8.3% in the previous report, and Google, which placed fifth with a 5.2% share, up 2.7% from September. The report ranked smartphone operating system platforms in the U.S. according to their share of current mobile subscribers age 13 and older.
Apple has begun sending out a survey to iPhone developers asking for their thoughts on the iPhone Developer Program and App Store experience. TechCrunch reports that while the lengthy survey covers a wide range of topics, the majority of questions revolve around the application review process and the developers’ overall happiness with the program. According to the report, the survey asks developers to rate their level of satisfaction with various aspects of the App submission process, app review process, and the “length of time it takes to get updates available on the App Store,” with options ranging from “Very dissatisfied” to “Very satisfied.” Another open-ended question asks “What one thing could Apple do to make the iPhone Developer Program better?”
According to new research released by IDC, the iPhone outpaced overall smartphone market growth in both the fourth quarter and on a yearly basis in 2009. The report states that Apple’s market share grew from 11.2% in the fourth quarter of 2008 to 16% in Q4 2009, placing the company behind rivals Research in Motion and Nokia, which held market shares of 19.6% and 38.2%, respectively. Fourth quarter iPhone shipments grew 97.7% year-over-year, a much greater increase than overall market shipments, which were up 39% from the prior year. For the whole of 2009, Apple’s iPhone shipments grew 81.9%, again outpacing overall industry unit growth of 15.1%. Apple’s market share for the year grew from 9.1% in 2008 to 14.4% in 2009, again placing the company in third behind RIM and Nokia. [via Mac Rumors]
Speaking with reporters, O2 U.K. CEO Ronan Dunne revealed that the company has sold two million iPhones since the carrier began offering the device in November 2007. Reuters reports that Dunne also said O2 still enjoys a boost from being the first carrier in the region to offer the iPhone, despite the fact that it is now available on rival carriers Orange and Vodafone. “It will take a long time before that goes away,” Dunne said. O2 announced its one-millionth iPhone sale in February 2009, although it did not specify when the sale actually occurred; Orange announced sales of 30,000 units on its launch day in November 2009, while Vodafone claims it shipped 50,000 iPhones on its launch day earlier this year.
Apple has released iPhone OS 3.1.3, its latest update to the operating system software for the iPhone and iPod touch. According to Apple’s release notes, the update improves the accuracy of reported battery level on the iPhone 3GS, resolves an issue where third-party apps would not launch in some instances, and fixes a bug that may cause an app to crash when using the Japanese Kana keyboard. In addition, a number of security changes have been made which are listed in this Apple support document. iPhone OS 3.1.3 is available now via the Update feature in iTunes for all iPhone and iPod touch models running iPhone OS 3.0 or later.
Update: Apple has also released an update to the iPhone SDK. SDK 3.1.3 is required for Xcode to work with and recognize 3.1.3 devices. The updated iPhone SDK is available now for registered iPhone developers from the iPhone Dev Center.
Softbank has reported a fiscal third quarter net profit jump of 41%, thanks in part to strong sales of the iPhone and related services, according to a Wall Street Journal report. Japan’s third-largest carrier by subscribers, Softbank said net profit for the December quarter was 24.1 billion yen (roughly $265.9 million), up from 17.1 billion yen in the year-ago quarter. “When we launched the iPhone [in the summer of 2008], some people said those phones were not suited for Japanese cellphone users,” said Softbank CEO Masayoshi Son at a news conference. “But those [skeptics] have been proven completely wrong ... The iPhone is selling so well that we are really feeling the boost from it.” Mr. Son declined to say how many iPhones Softbank had sold, but said Apple’s handset was “the biggest contributor to third-quarter handset sales,” and “a major contributor to growth in data communication revenue.”
The iPhone saw its share of the worldwide smartphone market shrink in the fourth quarter of 2009, according to a new report. Citing data from ABI Research, the Wall Street Journal reports that the iPhone’s share of worldwide smartphone sales dipped from 18.1% in the third quarter to 16.6% in the fourth quarter, despite the fact that iPhone sales increased 18% to 8.7 million units during the same time period. According to the report, the overall smartphone market grew 26% in the fourth quarter, with Motorola introducing its first Android-based phones and Nokia Oyj increasing sales by 4.6 million units. The last time the iPhone lost market share was in the fourth quarter of 2008, suggesting that the dip in worldwide sales may be a cyclical occurrence based in part on Apple’s traditional mid-year iPhone introductions, which offer opportunities for competitors to release new models later in the year.
Intellect Wireless has filed a lawsuit against Apple in U.S. District Court in Illinois claiming patent infringement. The complaint states that the iPhone 3G and iPhone 3GS infringe on at least two patents held by company owner Daniel Henderson relating to the receiving and display of “caller ID information, non-facsimile pictures, video messages, and or Multimedia Messaging Service.” Intellect Wireless has previously sued other companies, including Helio, T-Mobile, U.S. Cellular and Virgin Mobile, with similar claims of patent infringement; the company is seeking damages and other relief in its complaint against Apple.
Announcing its fourth-quarter fiscal results, AT&T has revealed that it handled 3.1 million iPhone activations during the holiday quarter. According to the announcement, this was the second-highest quarterly iPhone activation total to date, with more than a third of those activations coming from customers who were new to AT&T. Overall, the company saw net gains of 2.7 million wireless subscribers, the second-highest quarterly net gain in the company’s history; based on the numbers, the iPhone accounted for well over a third of those additions.
According to data found in AdMob’s December Mobile Metrics Report (PDF Link), iPhone OS saw strong international growth during 2009, with Apple taking its place as the leading mobile device manufacturer in Latin America, Western Europe, North America, and Oceania during Q4. Overall the worldwide share of ad requests coming from either iPhone or iPod touch units increased from 9% in Q4 2008 to 36% in Q4 2009. When considering smartphone market share only, the iPhone generated the most requests of any cell phone in the Latin America, Western Europe, Eastern Europe, North America, and Oceania markets during Q4, with an overall worldwide share of 51%. Notably, the rival Android OS platform also saw significant growth during 2009, representing 16% of worldwide smartphone ad requests during Q4 2009, compared to just 1% in Q4 2008.
Taiwan-based Wintek, a leading supplier of touchscreen panels for a number of devices, including the iPhone, claims to have settled a dispute with striking workers that resulted in apparent chaos at one of its Chinese plants late last week. Prior reports stated that more than 2,000 workers gathered at the plant, causing damage to vehicles and factory facilities and protesting the company’s rumored decision to not pay out Lunar New Year bonuses. Despite the reported vandalism, Wintek claims that the strike was settled by promising to pay out the bonuses, without any affect on the plant’s production or capacity.
AT&T has been meeting individually with regional executives to brief them on some upcoming changes to the network. Citing an unnamed source, BGR reports that the company is prepping its network to compensate for unannounced devices, as well as future devices that will use “heavy data.” The report also claims that changes to its current data and tethering plans will come once the network is able to “sufficiently handle the [data] load.” While details have yet to emerge, it has been speculated that Apple’s upcoming tablet device will be able to connect to 3G networks for Internet access when away from Wi-Fi.
Chinese officials have raided a counterfeit iPhone factory in Huaqiangbei in Shenzhen, China. According to a Shenzhen Daily report, 28 people have been taken into custody for questioning, and seven were arrested by police. The raid turned up more than 1,000 fake iPhones, which sell for 500 yuan (roughly $74) as opposed to more than 5,000 yuan for a real model, as well as 6,000 batteries. The report claims that Apple officials expressed their appreciation for the police’s “commendable efforts, and the company is sending staff to the area to learn more about the case. [via TUAW]
Apple is in talks with Microsoft to have the latter’s search service Bing replace Google as the default search on the iPhone, according to a new report. Citing two people familiar with the matter, BusinessWeek reports that the talks have been under way for weeks, but could still potentially fall apart and may not be concluded quickly. Google has been the default search engine on the iPhone since its launch, with Yahoo! an alternative, and also provides the data and maps for the iPhone OS’ Maps application, but has been in increasing competition with Apple through its smartphone operating system Android. In addition, Apple purchased mapping company PlaceBase in 2009, and it is possible Apple plans to implement the company’s technologies in to a new version of the Maps application that is less dependent on Google’s services.
Disgruntled employees at a plant belonging to Taiwan-based Wintek, a leading supplier of touchscreen panels for a number of devices, including the iPhone, have gone on strike, disputing working conditions and pay. According to China Daily, more than 2,000 workers gathered at the Suzhou, China plant on Friday, smashing vehicles and factory facilities while protesting harsh working conditions, spurred on by a rumor that the company was not going to pay out an expected year-end bonus from 2009. The workers claim that at least four people have died from long-term exposure to hexane, a toxic chemical workers had been asked to during the cleaning of touchscreen panels. “The truth has been hidden from public view. There are people dying from long-term exposure to the toxicant used in the factory but no one is paying attention to that. There needs to be further investigation,” a worker named Zhu told China Daily. Local authorities claim that there have been no deaths reported, and 47 people who showed signs of hexane exposure had received proper treatment; the company says it will be distributing the bonuses over the coming month. It is unclear what, if any, affect the strike might have on iPhone supplies.
AT&T has lowered the cost of its unlimited voice + data iPhone plans. The price of the individual unlimited voice and data plan for iPhone users has been lowered from $130 per month to $100, while unlimited Family Talk plans that include two iPhones have been lowered to $180. Unlimited texting remains a $20 for individuals or $30 for Family Talk plans. Current customers can change to the new, lower-priced plans without incurring a penalty or contract extension; the price drop comes on the heels of similar price drops from Verizon Wireless on its unlimited plans.