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Can Apple get away with another “S” iPhone?

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There have been many rumors this year about what upgrades Apple will include in its anticipated annual iPhone refresh. Most agree Apple will move to release two iPhones, but there is some debate about what those phones will be.

Rumor has it that Apple is working on a low-cost iPhone that will do away with the current iPhone design and instead use a new plastic case with a curved back similar to previous iPods. Despite being a less expensive device, that could make things even trickier for Apple to impress with an iPhone 5S upgrade that is largely expected to retain the “old” design of the currently shipping iPhone 5. The devices from competitors are making things even more difficult for Apple’s expected “S” upgrade. Rumors of a 4.8-inch iPhone prototype that recently surfaced don’t seem likely for the next iPhone, but that hasn’t stopped mainstream media and analysts from reporting that Apple is losing out on iPhone sales as consumers opt for larger screen devices. However, that might now be the case, at least not in the United States, with Strategy Analytics and NPD estimating Apple beat Samsung to become the No.1 phone vendor in Q4 2012. Will consumers want or expect a larger screen on the next iPhone, or will Apple’s usual minor refresh suffice?

What did past S upgrades have?
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Apple’s AuthenTec sells off embedded security solutions division, keeps the fingerprint & NFC tech

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In July, a 10K filing showed that Apple acquired security company AuthenTec for $356 million. At the time, we noted Apple was presumably after the company’s various fingerprint-related technologies, while companies such as Samsung, Motorola, and others entered in deals with AuthenTec for its secure VPNs, encryption algorithms, and security-related products. Today, NFCWorld (via TechCrunch) reported Authentec has now sold its embedded security solutions division to NFC company Inside Secure. The sale would seem to indicate that Apple was indeed specifically after the company’s fingerprint and NFC solutions:

The sale suggests that Apple’s interest in acquiring Authentec lies with the company’s innovative combined fingerprint and NFC solution, which is not part of the division being acquired by Inside Secure, and will lead to renewed speculation that Apple will include NFC in future iPhones and other devices…. NFC and contactless chip provider Inside Secure is to acquire the embedded security systems division of Authentec, the fingerprint and secure solutions specialist which Apple agreed to buy for US$356m in July 2012. The transaction is valued at up to US$48m.

To get a hold of AuthenTec’s Embedded Security Solutions Division, Inside Secure will reportedly pay $38 million in cash and another $10 million “subject to completion of certain post-closing transactions.” Products the division is responsible for are currently used in hundreds of millions of mobile and networking devices worldwide, with customers ranging from Samsung, Nokia, LG, and Motorola to HBO, Cisco, and Texas Instruments. Last year, the division brought in sales of $25.3 million.
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Google teases ‘next version’ of Google Wallet, gauges interest among iOS users

Google is teasing the next version of its Google Wallet service today as carriers team up to launch their own ISIS mobile wallet competitor. What happens when requesting an invite to the new Google Wallet is interesting… Google asks users to select what device they use: Android, iOS, and Other. 9to5Google has the full story.

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Prominent developer continues to believe NFC hardware exists on the new iPhone

Prominent iOS developer @Chronic seems to indicate in a series of tweets this morning that there is indeed NFC hardware in the iPhone 5 (or at least prototypes), but it perhaps is not set up to be used for payment systems.

[tweet https://twitter.com/chronic/status/245834867626090496]

[tweet https://twitter.com/chronic/status/245836508068708352]

[tweet https://twitter.com/chronic/status/245837468488839168]

[tweet https://twitter.com/chronic/status/245840258040745984]

The tweets seems to fall along the same lines as what we had heard earlier about prototypes. However, Jim Dalrymple from the Loop disputed claims of NFC hardware, perhaps to temper expectations.

Just as a note: The iPhone had the capability to use FM RX/TX radio for years, but Apple decided not to enable it for listening to radio stations or even broadcasting to your car stereo for whatever reason. This could be a similar situation.

We will not know for sure until the iPhone is torn down later this month.

Apple has a lot more NFC ideas than just a Wallet app

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9to5Mac reported last month that prototypes of the next iPhone contained Near Field Communications hardware. The tech could obviously be used with the PassBook app to create some wallet-type functionality, but that is just the tip of the iceberg.

The US Patent & Trademark Office published more patent applications today from Apple that indicated the company envisioned much more NFC capabilities than a Wallet app. The company apparently filed the applications between 2009 and 2010, and the graphics depict an iPhone interacting and controlling everything from a television and DVR to a standalone camera and a projector.

Patently Apple detailed the patent applications:

Our report mainly focuses on the new system as it relates to an iDevice controlling and interacting with a possible standalone television in addition to an expanded version of Apple’s current Apple TV styled device. The updated Apple TV could one day control cable or satellite television programming and video game play via a video game controller. This would really be a boost for Apple if users were able to play high end RPG video styled games with a standard styled controller. Further, Apple’s invention runs deep and they envision NFC ready iDevices being able to control standalone cameras, projectors, in-home security systems, lawn sprinkler systems, your thermostat, garage door and more. One of these fine days, future iDevices will finally support NFC; and when they do – watch out, because Apple will open the floodgates and release a new generation of applications noted in this report and others like their forthcoming iWallet. Will Apple’s next generation iPhone 5 finally be the one that will introduce NFC? Only time will tell.


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Start using Passbook on iOS 6 with a few simple steps

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[youtube=http://www.youtube.com/watch?v=BAzZtaV2sk4&start=30]

During Apple’s Worldwide Developers Conference opening keynote, which took place earlier this month, Vice President of iOS Software Scott Forstall unveiled a new app called “Passbook” that allows customers to track a number of various types of stubs, including boarding passes, loyalty cards, movie tickets, and coupons.

[tweet https://twitter.com/mikehelmick/status/217638173092749314]

The app is included in the iOS 6 preview currently available to developers a part of Apple’s developer program, but it is missing those virtual items to put inside. For now, it is just a sitting page with no functionality. However, Passbook will most likely swing into full gear as Apple makes more additions heading into this fall. For those of you itching to start using Passbook, you can get it going in iOS 6 with just a few simple steps:


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New iPhone prototypes have NFC chips and antenna

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We have previously been able to pull data from PreEVT iPhone 5,1 and iPhone 5,2 prototypes codenamed “N41AP (5,1)” and “N42AP (5,2)”, which lead us to believe that the new iPhone will have a bigger 1,136-by-640 display. We also detailed a lot of the hardware (here), but we forgot one very important bit of information. Further investigation into this hardware code dump leads us to believe that these iPhones also have Near Field Communication controllers directly connected to the Power Management Unit.

The implications are obviously monstrous. With the recently announced PassBook application (which we detailed prior to its announcement while speculating about an NFC tie-in), Apple will be set to compete with Google Wallet and Microsoft’s similar service that unveiled last week. Apple could tie in with a payment processor like Citibank’s PayPass system for credit card transactions—or it could become a payment processor of sorts with its hundreds of millions of credit cards already on file at iTunes.

NFC would also allow iPhone users a quick and easy way to share files from one iOS device to another.

Jim Peters, CTO of SITA, agrees that NFC is coming to iPhone and retailers should prepare…


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Microsoft unveils Windows Phone 8

Microsoft’s Windows Phone Summit is happening now in San Francisco with Microsoft Vice President Joe Belfiore giving a demo on eight of the big new features to be included in Windows Phone 8. Some of the notables, as highlighted in the images above, include: a new SIM-based NFC wallet experience that will initially launch on Orange (and it appears to include iOS 6 Passbook-like features for third-party cards, etc.); Nokia Map technology for offline maps and turn-by-turn; and, an updated customizable home screen. During the presentation, Belfiore also showed the slide above (via CNET) of SunSpider benchmark results showing IE 10 on Windows 8 beating out the iPhone 4S (running iOS 6 beta—Developer NDA be damned) and Android devices.

Perhaps the most interesting thing about Microsoft’s strategy is that it is—yet again—totally refreshing. That means no single Windows Phone 7 device will upgrade to Windows 8; all current devices are orphaned. For consumers, the company did this same thing with Windows Mobile. The only difference is that Windows Phone 7 looks like Windows 8. It is a completely new ballgame underneath, and the device is actually running an entirely new OS that gets its roots in Windows NT. For developers, things are easier due to the shared libraries.

Phil Schiller: App Store is more democratic than traditional retail, Passbook is not a direct payment service

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In a recent story about growing concerns among app developers who want better ways to promote their apps in the App Store, The Wall Street Journal published quotes from an interview with Apple’s Vice President for Worldwide Marketing Phil Schiller about the “tremendous amount” of work Apple does to help new apps get discovered. Schiller also talked about how things will improve with the redesigned App Store, Facebook integration, and new user tracking tools for developers in iOS 6:

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Mastercard/Paypass to be NFC partner with Apple on iPhone 5?

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iPhone NFC by moneto

We had some time to talk to a well-connected developer at Macworld who was building an app that— among other capabilities— includes NFC reading for the purpose of mobile transactions.  We were obviously curious why they would do that, noting that third party NFC readers for iPhone were not popular (aside from the recently announced Moneto, above).  The developer told us that he had no hardware knowledge, but he had spoken to Apple iOS engineers on multiple occasions, and they are “heavy into NFC.”

I asked how confident he was, and he said, “Enough to bet the app development on.”

This is not the first we have heard that iPhone 5 would have NFC, however.  Besides the deluge of ideas Apple has patented with NFC, the New York Times said pre-iPhone 4S that an upcoming iPhone would have NFC.  While it did not turn out to be the iPhone 4S, it could be the one coming up.

(Moneto again)

The question is now: Who will Apple partner with for its payment systems?  Over the weekend we received some hints…
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