Wall Street Journal

Fans in China eager to get their hands on Apple’s iPhone through wireless operators other than China Unicom, the country’s exclusive iPhone partner, are in for a surprise as the device is really close to launching on the China Telecom network. According to the Wall Street Journal, it received a much-needed CDMA-2000 network access license from Telecommunication Equipment Certification Center, the country’s certification body. This means China Telecom could now be just weeks away from officially selling the iPhone:

An iPhone compatible with the mobile network of China’ third-largest mobile carrier, China Telecom, has received a network access license, a regulatory website shows, marking a key step toward Apple being able to sell the phone to a broader audience in China.

Last week, Apple’s iPhone got an approval from China Radio Management agency for use on China Telecom’s network. That agency certified an iPhone version with a model number A1387a that supports “WCDMA,” indicating Apple could release a phone that supports both China Unicom’s and China Telecom’s networks. Nevertheless, China Telecom, which expressed interest to offer the iPhone on numerous occasions in the past, looks like it will finally land the sought-after device.

Widening the iPhone’s distribution footprint in China, a key growth market for Apple at a time when the company is increasing sales of its mobile devices around the world, is bound to positively affect the bottom line. China is now the world’s leading smartphone market. Revenue from the country contributed with 12 percent in the more than $108 billion of Apple’s fiscal 2011 revenue, up from just $3 billion in 2009.

Expand
Expanding
Close

image via the Verge

NOTE: The full coverage is right after the break.

McGraw Hill CEO Terry ..wait for it.. McGraw is in attendance.

10:00am: Schiller time! “We’re proud to help students learn”…and “Students are being introducd to the iPad”

10:03: “In general Education is in the dark ages”

10:05: 20,000 EDU apps on iPad. Many more in iBookstore

10:07: 1.5M iPads used in Education.

10:08: “Reinventing Textbooks”

10:09: How do textbooks measure up? Content amazing but portability and durability are bad.

Expand
Expanding
Close

Apple’s Education announcement is later today at the Guggenheim in New York City and we will be covering it live.  We have so far heard that it is education related and Apple’s iWork lead Roger Rosner is involved in what seems to be textbook creation and distribution tools.  Moreover, leading textbook publisher McGraw Hill will be involved, according to various reports.

Long time Apple watcher Jason O’Grady from ZDNet said he heard that some software is on tap today including Pages ’12 with support for publishing to iBookStore, an iBooks 2 app that will also work on Macs with Lion and Textbook rentals. The event’s happenings are to be announced by Eddie Cue with help from Roger Rosner.  All rumors seem plausible but uncertain.

O’Grady treats these topics as speculation on ZDNet, so it is not certain how much weight he placed in the newest claim.

Perhaps most interesting, Steve Jobs seems to have talked about Apple’s involvement in textbooks —perhaps pre-empting today’s announcement— in his official biography released late last year:

In fact Jobs had his sights set on textbooks as the next business he wanted to transform. He believed it was an $8 billion a year industry ripe for digital destruction. He was also struck by the fact that many schools, for security reasons, don’t have lockers, so kids have to lug a heavy backpack around. “The iPad would solve that,” he said. His idea was to hire great textbook writers to create digital versions, and make them a feature of the iPad. In addition, he held meetings with the major publishers, such as Pearson Education, about partnering with Apple. “The process by which states certify textbooks is corrupt,” he said. “But if we can make the textbooks free, and they come with the iPad, then they don’t have to be certified. The crappy economy at the state level will last for a decade, and we can give them an opportunity to circumvent that whole process and save money.”

Jobs had a much harsher view of the education “industry” in a 1996 interview, which we reported yesterday.

For what it is worth, our sources told us: “Don’t get your hopes up for anything consumer oriented.”

Expand
Expanding
Close

.

According to Macotakara, the next generation iPad will be thicker and therefore won’t be compatible with all current iPad 2 cases.  That however won’t affect Apple’s Smart Covers which only cover the front.  They believe that the front screen will be the same as the other iPads, with the same types of corners and bezel as well.

We don’t know what that image is up there but Macotakara seems to imply it is a case for the new iPad. Update: The case is for the original iPad 3G according to its seller. 
Expand
Expanding
Close

Wall Street Journal is reporting that Apple has begun a search to find senior-level executives for their cloud services. According to the report, Apple already has one Internet entrepreneur in their sights, but it hasn’t been disclosed who. To assist with their search, Apple is also reportedly looking into hiring out a recruiting firm to find solid talent.

The hopes in finding new leadership for their cloud products is undoubtedly to strengthen Apple’s already existent iCloud, but to also build new web-based applications. The report mentions that Apple is working towards building these web-based applications to limit the amount of hardware a single person needs on them at one time. The details aren’t final, though lower-level positions have already been filled to begin work. Arguably, Apple has already begun this push with iCloud.

Apple is also considering building new apps that leverage the Web to reduce people’s need to carry around numerous devices at once, according to one of the people familiar with the matter.

To assist with their movement to the cloud, Steve Jobs announced the new data center was operational in North Carolina during this year’s WWDC. The data center is home to powering all of Apple’s current cloud services, like iCloud, and presumably will power what’s coming up next.

It’s obvious that Apple will need to begin an aggressive attack on the cloud if they want to be on terms with where Google’s currently headed. It will be interesting to see how Apple will attack making web-based applications, and what else they plan to do in the cloud — but it seems they’re already off to a pretty solid start.

Expand
Expanding
Close

A rendition of an Apple-branded television set.

The WSJ reports that amid losing money on every television set they make, Sony somehow has a strategy for redemption. Stringer declined to provide details about what Sony is developing but said “there’s a tremendous amount of R&D going into a different kind of TV set”.

He he has “no doubt” Apple’s Steve Jobs also was working on changing the traditional TV set. “That’s what we’re all looking for”, he noted, warning “it will take a long time to transition to a new form of television”. Slim margins, low prices and little innovation make the business of researching, developing and marketing high-definition television sets a cutthroat one, he remarked:

We can’t continue selling TV sets [the way we have been]. Every TV set we all make loses money.

His company, Stringer said, spent the last five years creating an ecosystem to take on Apple, even though the company had seen little success with the Google TV platform and other connected television efforts:

Expand
Expanding
Close

Ron Johnson, Apple’s former vice president of retail and the creator of the Apple Store, left for J.C. Penney November 1 and already he is picking industry veterans to join his leadership team at the Plano, Texas-headquartered department store chain. The Wall Street Journal reports that Johnson is tapping former Apple talent, including former chief financial office of Apple Retail Michael Kramer and Apple’s chief talent officer Daniel Walker.

Interestingly, it was Walker who helped Steve Jobs hire Ron Johnson to head Apple’s retail efforts. Both men served at Apple from 2000 to 2005. Granted, Walker and Kramer are both long-exited Apple people, but the temptation for current Apple talent to somehow make its way to Penney will always linger.

Sure, you might say who would  rather work at J.C. Penney rather than the most powerful, cool technology company in the world. But on a granular level, there might be high paying jobs with Johnson that Apple won’t match that could draw some top Apple talent.  Johnson himself is probably the best example of that.

There is also likely a non-compete clause in Ron Johnson’s severance agreement barring him from poaching Apple employees, but those are easily circumvented.  Just as Steve Jobs poached a bunch of his top Apple engineers to build out NeXT…

Expand
Expanding
Close

A delayed launch of Apple’s iPhone, which had been pushed back from the usual summer time frame to mid-October, affected slightly Apple’s earnings, but the effects were felt in the entire smartphone industry which experienced a lower-than-expected growth in the third quarter, research firm IDC reported yesterday. Vendors shipped 118.1 million smartphones during the September quarter, a 42.6 percent growth from the  82.8 million units a year ago. However, IDC’s forecast for the quarter was 49.1 percent and they attribute the difference to the iPhone launch delay:

Smartphone growth came in lower than expected due to the delayed launch of the updated Apple iPhone. In previous years, the introduction of a new iPhone resulted in a spike in shipment volumes during the third quarter. Western Europe and the United States, two key regions for the iPhone launch each year, still posted sizable year-over-year gains, but lower than anticipated.

“Broad and deep product portfolio” and “a welcome reception” of Bada-branded smartphones helped Samsung overtake Apple as the world’s leading smartphone maker in the third quarter, IDC said. But i’s bound to be a short-lived victory as “Apple’s fourth quarter launch of the iPhone 4S and lower pricing of older models will certainly boost volumes”, the research firm explained. But it’s when you drill Apple’s biz deeper when it really starts to come together. Read on…
Expand
Expanding
Close

It wasn’t much of a surprise when Tim Cook said “Apple is not going to change” in his letter to employees as newly appointed CEO following Steve Jobs’ resignation. Not long after that, we published a story about what we called Cook’s first “anti-Jobsian move”. Of course many questions arose surrounding how Cook’s sales and operations background may influence his leadership style, and how it might differ from Jobs.

Today we get a look at just how the company has changed under Cook’s guidance with the Wall Street Journal publishing a story detailing the moves the new CEO has made since taking over in August:

In recent weeks, Mr. Cook has tended to administrative matters that never interested Mr. Jobs, such as promotions and corporate reporting structures, according to people familiar with the matter. The new chief executive, 50 years old, has also been more communicative with employees than his predecessor, sending a variety of company-wide emails while addressing Apple employees as “Team,” people close to the company said.

According to the report, Cook was also behind a recent restructuring of the company’s education division, a move which split the business (which until now operated “fairly independently”) into a sales and marketing structure and incorporated it into the company-wide sales and marketing divisions. The restructuring will place additional responsibilities on Apple execs Phil Schiller and John Brandon.

Citing “former executives” and others close to the company, the WSJ claims Cook will also “be more open with shareholders” and note he’s expressed desire to meet with investors more often than Jobs. After Cook’s statement that he’s “not religious about holding cash or not holding it” during Apple’s earnings call last month, it’s not much of a surprise many expect the new CEO to be more open to stock buybacks or dividends as well.

Expand
Expanding
Close

IT managers’ thinking is influenced by a myriad of business factors, including research studies advising them not to adopt Apple’s computers. But their attitude is changing as Forrester Research, one of the most outspoken proponents of the Mac-free business environment, now backpedals on their 2008 report which called for a total banishment of Macs in the workplace – even for the most mundane tasks such as handling email.

According to the Fortune’s Philip Elmer-DeWitt, a new Forrester survey (available for sale on the corporate card here) of 590 IT managers, Mac users comprise “the 17 percent of information workers who use new technologies and find innovative ways to be more productive and serve customers more effectively”. Wow, talk about change in stance. But wait, there’s more. “Mac users are your HEROes and you should enable them not hinder them”, the report concludes, HEROes being a Forrester acronym for Highly Empowered and Resourceful Operatives.

Just like with iPhone, “Macs are being freewheeled into the office” by corporate higher-ups – typically executives, sales reps and other workaholics – who rely on MacBook Pro machines rather than Windows notebooks which “are slowing them down”:

Employees want their PCs to boot in 10 seconds, not 10 minutes, and they don’t want to have to get a cup of coffee while opening a 20 MB spreadsheet in Excel. They’re drawn to uncluttered Macs — especially those with solid-state drives, which are more responsive and boot in seconds.

That, and the looks…

Expand
Expanding
Close

According to the Wall Street Journal, Samsung has offered Apple a secret deal to sort out the mess surrounding the Galaxy Tab 10.1 tablet launch in Australia. The report has it that Samsung proposed a cunning solution that would allow them to release the device in the country next week. Apple’s legal counsel Stephen Burley allegedly told Justice Annabelle Bennett that Samsung’s “inconvenience would be diminished and we would be comforted” if the deal was accepted.

What incentive Samsung might have in store for Apple in exchange for releasing its tablet in Australia as early as next week is anyone’s guess. I asked patent expert Florian Mueller, who runs the FOSSPatents blog, about this. He responded on Twitter that Samsung “might promise not to infringe certain patents, make a payment, and perhaps also procedural concessions”.

Expand
Expanding
Close

Unwire.hk (via MacRumors) shows what they indicate may be screen protectors for the new iPhone 5. Interestingly, the screen protectors here show a wide home button (above) and when compared to the current iPhone 4, show a wider screen area (below).

.

If the current aspect ratio is preserved, the new size would indicate that the screen extended further toward the top and bottom of the device.

Another closeup image, below:

Expand
Expanding
Close

Bloomberg (adds to the) reports that Sprint will differentiate itself from AT&T and Verizon iPhone offers by offering a truly unlimited plan.

Sprint, the third-largest U.S. wireless carrier, plans to begin selling the device in mid-October under a deal with Apple for the next model, the iPhone 5, said the people, who wouldn’t be identified because the plans aren’t public. Becoming the country’s only operator to offer the device with unlimited data service for a flat fee may help Sprint draw customers from AT&T and Verizon Wireless, which already carry the phone, they said.

Sprint, probably because it has to, offers reasonable plans without data capping or tiers.  Its subsidiary Virgin Mobile would be even better with its $35-$55 unlimited plans.

Expand
Expanding
Close

While it may seem obvious, Sprint is telling its dealers not to discuss the possibility of an upcoming iPhone 5 according to SprintFeed.

If the nation’s third largest carrier wasn’t getting the iPhone, would they put in such harsh lockdown measures?  Why not instruct employees to tell customers to look at a nice Blackberry or Android instead?  Color us skeptical.

Earlier this month, the WSJ reported that Sprint would be getting the iPhone 5 at launch.  That followed our report a month earlier that Sprint engineers were preparing for the iPhone 5.  In May, an Engineering job had been advertised for an iPhone technician to work in Sprint’s HQ city, Kansas City.

T-Mobile is also likely to get access to the iPhone 5 later this year, though they already have 1 million iPhones on their network.
Expand
Expanding
Close

We’re picking some of the more meaningful reactions to today’s news. It’s important to remember that Jobs isn’t gone from Apple, he’s Chairman Jobs now.

Bloomberg reports that Steve Jobs will stay on the board of Disney.

Apple’s Steve Jobs is said to be remaining on Disney’s board

The WSJ reports (they have a nice Jobs quotes as well):

People familiar with the situation have said that Mr. Jobs continues to be active at Apple and is closely involved in the company’s product strategy. Apple watchers don’t expect that to change even after Mr. Cook takes over.

Bloomberg, however, just reported that Jobs had been weak and housebound for several weeks but worked and attended today’s board meeting…

Expand
Expanding
Close

iPhone 5 knockoff

John Packowski writes for The Wall Street Journal’s blog AllThingsD that, alas, iPhone 5 will be launching in October, not in September as the rumor mill has been buzzing over the past few weeks. This information apparently comes from an unnamed source close to Apple. The blog has been right about many things Apple in the past so it’s worth mentioning here:

So those rumors claiming the iPhone 5 will debut in late September? They’re wrong. Instead, it’s going to be an October surprise — the month in which Apple will be launching its next generation iPhone.

We received solid information last month that AT&T was making big changes to its insurance policy related to iPhones in the first week of October.  Additionally, we broke the news that AT&T was introducing a new throttling policy as of October 1st as well.  The writing appears to be on the wall.  But AllThingsD think it will be a late October surprise:

So when can we expect the company to uncrate the iPhone 5? “October,” the source said, while declining to offer a hard-launch date. Other sources said it will be later in the month, rather than earlier.

Others have reported that AT&T has blacked out employee vacations in the September’s last two weeks, which is usually a sign of a major product launch which may or may not be related to a new phone from Apple. This unconfirmed piece of the puzzle was apparently provided to Gizmodo by an AT&T employee this past Friday who noted that “historically the only time they’ve done this was for an iPhone release”, adding that “we’re looking at the last two weeks of September”.  BGR said that it was the first two weeks of September.  Not so says AllThingsD:

“I don’t know why AT&T’s calling for all hands on deck those weeks, but it’s not for an iPhone launch,” a source familiar with Apple’s plans said.

Expand
Expanding
Close

Following our post with images of a purported iPhone 5 case, other sources like TechCrunch and Onlinelpnprogram.net have followed up with us with their own cases. This time we not only have a silicone case, but a hard case, too. The image above shows a top view of both of our cases. They both show a ringer switch on the opposite side of the volume keys, which is a shift from previous models of the iPhone. In addition, the bottom of these cases have holes for a separate speaker, main microphone, and USB dock connector. You may have noticed this on our iPhone 5 case post earlier this week, but today comes the more important information.

Our images were admittedly not very clear about the case’s thinness or if there was a “tear drop” as previously described by This is my next. Our new images are clear and there are appears to be a slight – not major – tear drop in the design. The case goes thick to thin from top to bottom. In addition, the sources who provided us with these two new cases have shared some dimensions. According to them, the case is 5 inches tall and 2.8 inches wide. These are tight cases so the iPhone 5 dimensions should only be a few millimeters smaller than those numbers. For comparison, the iPhone 4 is 4.5 inches tall and 2.31 inches wide. This likely will leave room for the rumored bigger screen, as reported by the WSJ, Bloomberg, and This is my next.

Although we are not able to absolutely confirm that these cases will fit the fifth-generation iPhone, the sources of these cases stress that the information used for design and manufacturing came from their own proven industry sources…Sources like the ones that provided amazingly accurate iPad 2 information and dimensions to case manufactures months before the product’s March debut. These cases are also just appearing weeks ahead of the iPhone 5’s debut. With the iPhone 5 most certainly in production, it is prime time for insider leaks to occur in Asia.

iPhone 4 case, left.  iPhone 5 case, right

Full gallery of iPhone 5 cases below:
Expand
Expanding
Close

new screenshot left, old screenshot with Kindle Store link (right)

It looks like not only is the WSJ and the Kobo App store relenting to Apple, but so is Amazon.  In the latest release, they’ve pulled out the link to the Kindle Store.  The remaining holdout?  Google.

Update: Nook got the same treatment which render the current screenshots outdated.:

You can read any NOOK Book you have purchased on this updated NOOK for iPhone app, however the Shop link has been removed so to buy NOOK Books from your iPhone, open your Safari browser and go to nookbooks.com. 

There are some other updates for the Kindle App release notes accompanying the Kindle update (iTunes):
Expand
Expanding
Close

Just hours before today’s earnings call, the well-connected Yukari Kane, Joann S. Lublin and Nick Wingfield of the WSJ report:

Since Steve Jobs went on medical leave this winter, some members of Apple Inc.’s board have discussed CEO succession with executive recruiters and at least one head of a high-profile technology company, according to people familiar with the matter.

The conversations weren’t explicitly aimed at recruiting a new chief executive and were more of an informal exploration of the company’s options, said these people. The directors don’t appear to have been acting on behalf of the full board, some of these people said. Apple has seven directors, including Mr. Jobs. It is also unclear whether Mr. Jobs was aware

Interestingly, the WSJ actually got a response from Jobs. “I think it’s hogwash.” he said.

According to the report, Board members have even held talks about the company’s leadership with some search firms after those recruiters informally approached them, said three of these people. (…or at least according to voicemails left on their machines?)

It would be shocking if Apple had to look outside its own walls for a successor, at least outside of interviewing for due diligence purposes.  Full article available through Google Plus.

Expand
Expanding
Close

[vodpod id=Video.13339040&w=650&h=400&fv=videoGUID%3D%7B2606B2B4-E5C1-41E6-A7FF-191E5D010FA3%7D%26amp%3Bplayerid%3D1000%26amp%3BplyMediaEnabled%3D1%26amp%3BconfigURL%3Dhttp%3A%2F%2Fwsj.vo.llnwd.net%2Fo28%2Fplayers%2F%26amp%3BautoStart%3Dfalse]

Without revealing too many new details, The Wall Street Journal reports that Apple and China Mobile are “getting closer” to the seemingly elusive China Mobile iPhone deal. China Mobile is the mainland’s largest carrier with over 600 million subscribers (that’s about the equiv. of the US+European populations). The report also confirms that it was, in fact, Tim Cook who was spotted at China Mobile‘s headquarters in mid-June.

China Mobile references in the iOS SDK – Thanks, Sonny Dickson!

The WSJ also discusses the price of the current iPhone models in context with the average salaries for China households:

The iPhone, which currently sells for between 3,999 and 5,999 yuan without contract, would be a luxury for many Chinese consumers. The average household income in the first half of 2011 was 12,076 yuan, according to China’s national statistics bureau.

With this fact in mind, it makes sense for Apple to build and sell a more economical iPhone. The report is not specific about when this China Mobile iPhone will launch and China Mobile has already confirmed that talks with Apple over carrying the iPhone are ongoing. Be sure to check out the WSJ’s explanation of the “exclusive” in the video above.

Expand
Expanding
Close

Taiwanese trade publication DigiTimes quotes unnamed industry sources who claim Foxconn, the world’s largest contract manufacturer for gadgets, will produce a rumored Android-driven tablet from Amazon, said to sport a 10.1-inch display, with shipments to begin in 2012 at the earnest. Quanta Computer, another contract manufacturer from Asia, has already begun shipping a smaller seven-inch device to Amazon, the report notes:

Foxconn Electronics (Hon Hai Precision Industry) has reportedly landed orders for 10.1-inch tablet PCs from Amazon with shipments to begin in 2012, while Quanta Computer has begun shipping a 7-inch model to Amazon. Foxconn declined to comment on market speculation.

Foxconn of course is Apple’s long-time manufacturer so it comes as a surprise that Apple did not exercise its influence and billions to block rivals from tapping Foxconn’s manufacturing potentials. That’s not entirely unheard of, however…

Expand
Expanding
Close