Apple fixes iPad shipping delays for online buyers

Online iPad shoppers used to be forced to wait up to a week for their tablet orders to ship. But now orders ship within 24 hours as Apple has apparently solved a nagging iPad supply problem. According to Apple's online store all six versions of Apple's iPad ship in just 24 hours from the time of purchase - down from up to seven days in recent weeks.

Since it first launched the iPad in April, Apple managed to sell over 3.27 million tablets, according to figures from late July. Now, after months of delays and estimated delivery times as much as three weeks at peak times, Apple's official online store displays a delivery schedule of just 24 hours.

Apple basically ran out of iPads the week it launched the tablet in the U.S.. The company said it has sold 500,000 units during launch week, and there were over 200,000 pre-orders for the WiFi-only iPad before the tablet even went on sale.

With such high demand for its iPad, Apple had to immediately delay the international launch of the tablet until the end of May, while the company prepared to introduce the WiFi+3G iPad by the end of April in the U.S. New pre-orders for the 3G iPad also had to be delayed by a week.

Throughout the summer, the estimated shipping time for the iPad from Apple's official online store stayed at seven to ten days for delivery, according to a chart compiled by CNN Fortune. In August, this went down to five to seven days, then to one to three days last week, and now to 24 hours.

The latest analysts' estimates from iSuppli say that Apple will sell almost 13 million iPads by the end of this year, up from a previous forecast of just over seven million. A new iPad is expected to arrive in April 2011, according to the same company.

Click here for a free digital sample of Macworld’s Complete Guide to the iPad. Packed with tips and tricks, this essential guide gives you the lowdown on all the iPad’s features, plus the top 50 apps you must download.

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iSuppli: No 'iPad killer' coming until 2012

Good news if you bought an iPad: It’s set to dominate the tablet market by almost three to one until 2012.

Its first real competition, namely PC-based tablets and slates debuting in 2011, will still only account for less than 30 per cent of the market, and will be dwarfed by the Apple device, according to the research firm iSuppli.

iSuppli is banking on the iPad's history to mirror that of Apple's iPhone, when it took other smartphones about three years before they were "in the ballpark" with the iPhone, said Rhoda Alexander, iSuppli's director of monitor research.

She said prototypes by HP, Dell, and Lenovo will appear--but none except from HP, set to appear in 2011, has the potential to take away some of the iPad's market share. This includes the rumored Research in Motion "BlackPad" and Google Chrome OS tablet. About 3.3 million iPads were sold between March and June of this year worldwide.

While many who aren't iPad diehards may find this projection tough to swallow, let's look at who is trying to take on the iPad.

The Reality

1. Asustek Computer

Asustek has come up with two versions of a tablet, the Eee Pad EP121 and Eee Pad EP101TC. The EP121 has a 12-inch touchscreen, Windows 7 Home Premium OS, an Intel Core 2 Duo processor, and it can be converted into a laptop. The EP101T has a 10-inch screen, uses Windows Embedded Compact 7 software, weighs a mere 675 grams, has Nvidia Tegra chips, and will cost around $450 when it is released in early 2011. The EP121's price hasn't been set, but it's also set to debut in 2011.

2. Cisco Cius

This 1.5-pound, handheld tablet with a 7-inch display also sports a front-facing 720p video camera and 5MP camera in the back. It also comes with an Intel Atom 1.6Ghz processor, the Android platform, eight hours of battery life, videoconferencing and a virtual desktop client for cloud computing. Cisco said the price tag will be just under $1000 when it's available in early 2011.

3. Foxconn Technology N928-1

The manufacturer of the iPad, the Hon Hai Precision Industry also known as Foxconn Technology, is now coming out with its own iPad competitor, a 10.1-inch touchscreen Android tablet using a Nvidia Tegra chipset displayed at the Computex electronics show in Taipei earlier this year. It will have both 3-D and high-definition screens but so far, few details have been released.

The Rumours

4. "BlackPad"

With Enterprise Server 5 software's mobile management tools, the rumored Research in Motion BlackPad could separate business and personal information, a boon for an IT manager who can change company data but leave personal information or apps intact. It also allegedly has a 9.7-inch touchscreen and the QNX operating system, the result of RIM's recent purchase of QNX Software Systems. Of course, there have been no official statement, price, or specs released.

5. Chrome OS Tablet

Rumoured to hit the stores in November, the Chrome OS Tablet is supposed to be a 1280-by-720 touch display, 22GB solid state drive with 2GB of memory. It also incorporates Google Chrome, which gives users geolocation and can sync information and autofill data across different machines and devices. So far there's been no official word on the alleged tablet from Google.

6. HP "PalmPad"

So far this rumoured tablet from HP has garnered the most buzz as the iPad killer. It will be HP's first tablet featuring the Palm WebOS, and is considered to have many of the advantages of the iPad, but with a front-facing camera and expandable memory. The tablet will likely be available next year, but so far no specs or other official information has been released.

[Reach or follow Barbara E. Hernandez on Twitter at http://twitter.com/bhern.]

Click here for a free digital sample of Macworld’s Complete Guide to the iPad. Packed with tips and tricks, this essential guide gives you the lowdown on all the iPad’s features, plus the top 50 apps you must download.

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Report: HD, large format Apple TV apps unlikely for now

A revamped, renamed Apple TV, rumoured to be announced at a special Apple event next week, is unlikely to come with iTunes App Store style gaming.

A newly named iTV, could debut with a more tempting price tag, cheaper rentals and running a version of Apple's mobile iOS at the event on 1 September.

However, "three people familiar with Apple’s longer-range plans" told the Financial Times, that while the company are more than keen to get apps on the device, large screen compatible apps are unlikely to be announced next week.

""They’ve been marginalised and are working hard to get back into it," said an executive at a game developer familiar with Apple’s intentions. But the prospect of large-format 'apps' on televisions might still be a way off," the FT notes.

The FT adds that Apple recognises the potential revenue associated with offering iPhone and iPad type apps in the home and on a big screen.

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Developer: Apple's iAd solution is expensive and ineffective

According to one developer, Apple's iAd advertising platform doesn't work as well as AdMob.

Developer David Smith of Cross Forward Consulting writes in his blog that an iAd campaign designed to publicize his company's Audiobooks app generated only 84 downloads of his app in one week (August 19 to August 25). The cost of the campaign was $1,251.75.

The iAd received 2,052,929 impressions and 5,007 people clicked on it but there was a very poor conversion rate resulting in 84 eventual downloads of the Audiobooks app. Having spent $1,251.75 on the campaign (the pricing for an iAd campaign is based on a Cost Per Click (CPC) of $0.25), Smith calculates that his company paid $15 for each of the 84 downloads of the 99 cent Audiobooks app. Not a good return on investment.

Ad engaged

Smith maintains that it was not the ad that was at fault. Nor was the app, which Smith claims has generated well over 1.6 million downloads since it was launched and has consistently been in the Top 10 Book apps for its lifetime.

"Given that the cost for the campaign is entirely based on clicks, we designed our banner to try and provide the audience with all the basic information they need to understand what Audiobooks is and whether they might be interested in purchasing it. This lead to a more textual treatment than a graphical one. Since we don't pay for impressions we only wanted truly interested people clicking on the advertisement," Smith explained.

However, Smith does suggest that iAd isn't as engaging as Apple has portrayed it. "I think that Apple has found itself falling foul of exactly the same problems they called out when the unveiled iAd. The ads lack engagement and emotion. Clicking on the banner just shows you a simulated App Store page. There is nothing to draw the user in. I think that this avenue might have some success if they allowed developers to create more engaging advertisements that can really showcase the app and its features, including videos, HTML5 mockups and demos," he explains.

Despite his experience, Smith praises the iAd platform's ease of use for developers wishing to promote apps. "You just go to the launch page for the program and submit your contact information. A day later you'll get an email from someone at Apple asking you to setup the paperwork and provide the 'creative' (i.e. the banner image for the campaign). You need to provide them with a portrait and landscape image formatted for a standard and retina display."

AdMob quick blast

Smith ran the same campaign using AdMob. This time he paid $75 to do a quick blast campaign. The campaign on AdMob achieved 145,093 impressions and 1,944 click throughs – a much better conversion rate and at a cost per click of $0.04 more affordable. Smith notes that the AdMob campaign "can't do the nice integrated download conversion tracking," so he cannot be sure how many downloads were as a direct result of the ad.

"AdMob can't do the nice integrated download conversion tracking that Apple can, but the impression/click data is nevertheless interesting," he writes.

AdMob doesn't offer the seamless purchase experience that Apple is able to offer with iAd, but concludes Smith, AdMob is both cheaper and more successful.

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Apple iPad kit turns tablet into clamshell netbook

As cutting edge as the iPad is, the forces to make it into a humdrum clamshell device continue to rear their retro heads. The latest entry designed to turn the tablet into a tactile notebook comes from a company based in the China, Shenzhen Paoluy Silicone Technology. It has in the works a case for the iPad that has a built-in Bluetooth QWERTY keyboard.

The case came to light last week when the Federal Communications Commission approved its use. FCC approval was needed because the iPad accessory has a wireless component, its Bluetooth keyboard.

The keyboard has a rechargeable battery that's rated by the company at 90 hours for continuous use and 100 days in standby mode. One U.K. retailer, though, pegs the continuous use time at 45 hours. Charging can be done with standard iPad connector and takes from four to 4.5 hours.

Other features of the accessory include a "durable leather style exterior," magnetic fastener to keep the case closed and an auto-sleep mode that shuts off the keyboard after 10 minutes of activity.

The Shenzhen case, expected to be delivered to U.S. and U.K. markets soon, isn't alone in the turn-the-iPad into a dull laptop market. A company called ClamCase is expected to deliver a product this fall that makes the iPad look like a Windows notebook tablet.

No pricing has been revealed for the accessory in the U.S. but it's expected to sell for $92.72.

Click here for a free digital sample of Macworld’s Complete Guide to the iPad. Packed with tips and tricks, this essential guide gives you the lowdown on all the iPad’s features, plus the top 50 apps you must download.

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Free Apple iPad spam hits Twitter, Facebook

Facebook and Twitter users are complaining about their accounts being compromised and then being used to spam friends with suspicious "free iPad offers."

Twitterwarned users of the scam, Wednesday, saying that it was resetting passwords of affected users. "If you've received a message promising you a new iPad, not only is there no iPad, but also your friends have been hacked," Twitter said

The scam is also hitting Facebook users to, according to company spokesman Simon Axten. "It's affecting an extremely small percentage of people on Facebook, but we take all threats seriously," he said via email.

Gerome Stevens discovered that his Twitter account had been used to direct message contacts late Wednesday. He's not sure how the scammers got into his account, but they sent direct messages to his friends, that said, "u have to check out this website its glitchin right now and sending out ipads to everyone for free!"

He said the messages continued, even after he'd changed his password.

The messages his friends received contained a link to better-gifts.net. That Web site asks for personal information, and then directs the user to a variety of promotional offers from legitimate companies such as Netfilx, the Doubleday Book Club, and Columbia House DVD.

Online marketing programs pay cash for Web traffic, and hackers have found that by phishing victims and then using that information to break into legitimate Twitter and Facebook accounts, they can earn money.

This type of spam is particularly effective, because the messages appear to come from a trusted source.

[Follow Robert on Twitter at @bobmcmillan. Robert's email address is robert_mcmillan@idg.com]

Click here for a free digital sample of Macworld’s Complete Guide to the iPad. Packed with tips and tricks, this essential guide gives you the lowdown on all the iPad’s features, plus the top 50 apps you must download.

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Financial services sees 29 percent drop in contractor IT jobs

The number of jobs available for IT contractors working in the financial services sector fell 29 percent last month, according to a new report.

The latest survey from pre-employment screening company Powerchex contrasts sharply with June’s report, which showed a 320 percent jump in job offers to IT contractors in the sector. It also contradicts recruitment company Michael Page, which recently said that the IT jobs market was stabilising.

But overall, Powerchex found that the total number of job offers had increased by 15 percent in July.

Alexandra Kelly, director at Powerchex, said: “Summer tends to be a quieter time of year, so the recent 15 percent increase in recruitment activity is undoubtedly a good indication of the confidence levels of financial services companies.

“However, we are seeing considerable volatility in month-on-month recruitment activity, which indicates that the job market is still some way from settling down.”

As well as with IT contractors, Powerchex noted volatility among stockbrokerage firms, which made 12 percent fewer offers in June compared to May, but offered 76 percent more jobs in July.

There may be better news for IT contractors in other sectors, however, as a recent study by PeoplePerHour.com, an online marketplace for freelancers, revealed that many small businesses in the UK are increasingly relying on IT contractors to support their IT investment.

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PC Advisor poll: One in five plan to buy Apple Mac

A PC Advisor poll (Macworld's sister publication) has found that an astonishing 18.4 percent of respondents plan to buy an Apple Mac.

The survey was entitled 'My next computer will be a..." Around three-quarters (74 percent) plumped for the answer 'Windows PC'.

Forum member canarieslover answered: "Another Windows PC to enable me to carry on using my not inconsiderable investment in software that runs under Windows... Old habits die hard."

"I like and use Linux, but when I buy my next computer it will be Microsoft Windows simply because so much of my software base requires it," agreed dms_05. "In any case Windows has performed faultlessly for me over the years - but I do like Linux."

But a surprisingly high 18.4 percent went for 'Apple Mac'.

"Just bought an iMac!" reported john 52. "Had been looking at the Sony all in one but found the price difference not huge, and so far very pleased with the ease of set up."

The remaining 7.7 percent answered 'Linux system'.

"I've been using Linux for too long. I can see no good reason to switch to Windows," commented octal.

Based on 392 votes, 20 August 2010. Have your say in the poll, or join the discussion in PC Advisor's forums.

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UK consumers spend 45% of day using phones and communication devices

UK consumers spend 45 percent of their day using mobile phones and other communication devices, says Ofcom.

Research by the watchdog revealed four times as many texts were sent in 2009 compared to 2008.

Media multi-tasking – or using several different types of media at the same time, for example taking a phonecall while surfing the web – accounts for 20 percent of all media consumed throughout the day. Ofcom said on average, UK consumers cram 8 hours 48 minutes of media into just over seven hours in one day.

Brits use smartphones such as Apple's iPhone for media multi-tasking

Media multi-tasking is more common in younger generations with 29 percent of 16 to 24s admitting to consuming media simultaneously compared to just 12 percent of over 55s. However, Men spend nearly an hour more per day using different types of media than women.

The majority of Brits also use one device, which Ofcom said was commonly their mobile phone, for more than one type of media and communications use.

In June this year more than a quarter (26.5 percent) of Brits said they owned a smartphone, which is double the number two years ago. During Q1 of 2010, 23 percent of Brits accessed web content or emails from their handset, compared to 20 percent in the same period of 2009.

Ofcom also said 13.5 million mobile phone owners used their handset to access the web during the first quarter of 2010, compared to 9 million the previous year.

Facebook was named the most popular mobile internet site, with 45 percent of all online time on mobiles in December 2009 spent on the social network.

Social networking accounts for nearly a quarter of all time spent on the internet (23 percent) compared to just nine percent in 2007. The average Facebook user spent 6 and 30 minutes on the social network during May 2010.

Ofcom also said the average Brit spends three hours and 45 minutes every day watching live TV, while 31 percent of UK homes accessed an online catch-up TV service during Q1 of 2010, that's eight percent more than the previous year.

Meanwhile 22 percent of Brits admitted to having bought a HD-ready TV set in the last 12 months.

Despite the increase in communication, Ofcom said it accounts for less of their total household expenditure - 4.4 percent in 2009 compared to 4.6 percent in 2008. The watchdog said the trend for purchasing bundled services eg telephone, internet and TV from one supplier, attributed to the decrease in household spend.

Half of all UK households now buy two or more services from a single provider compared to 29 per cent in 2005, while 70 percent of those that buy bundled services says it was because it was cheaper.

"For the first time we can see just how central media and communications are to our lives – on average we use them for nearly half our waking hour," said Peter Phillips from Ofcom

"Consumers are using communications services more – phone calls, texting and the internet. Yet they are paying less despite getting more, partly through buying in bundles."

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Apple iPhone gets a social news app

Flipboard broke new ground when it launched its flashy iPad app last month that "socialised" the news by turning feeds from Facebook, Twitter, and such into a slick electronic magazine. Now Blancspot Media is promising to bring the pizzazz of social news to the iPhone with its new Blancspot software.

The app, now selling at Apple's App Store for 1.79, is designed to mix eye candy with interaction to create an innovative news experience for iPhone owners. "We created Blancspot to offer a news experience that is visually stunning and socially relevant, and that will engage its audience by creating a more positive way to consume and share media," Blancspot founder and CEO Camille LeBlanc says in a statement.

"We are thrilled to join the efforts to make media platforms a more beautiful and elegant place to learn, share and take part in the world around us," she adds. "Blancspot provides a better news option for the digital native--we are giving them a window on the world that engages the senses and their communities."

When you launch the app, a slideshow, with music, appears. Photos in the show are tied to breaking news. If you like the music behind the slideshow, you can buy it immediately from the iTunes store. By tapping a button on the screen, a news story about the photo appears. From the story, you can access Twitter or a social network created by Blancspot. You can also access from a dashboard of top stories in several news categories, such as politics, culture, and the planet.

Blancspot is an engaging way to look at news on the iPhone, but it's far from the revolutionary application that its makers make it out to be.

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Microsoft adds features to Office for Mac 2011

Microsoft today announced that the next version of Office for the Mac will include a pair of key features that debuted in the Windows edition of Office 2010 earlier this year. Office for Mac 2011, which is slated for an October launch, will offer "Sparklines," cell-sized Excel charts, and in-app image editing tools, two features that first appeared in Office 2010, the more popular Windows edition that hit the retail market last May.

Microsoft touted the new features as part of its attempt to boost compatibility between the Mac and Windows versions of the suite. "What we've been able to do in Office for Mac 2011 is to bring a lot of power to bear to produce a professional-looking document that's still compatible with Office for Windows," said Kurt Schmucker, an evangelist with Microsoft's Mac team, in a video the group released on wednesday.

Sparklines lets users drop in bite-sized charts or graphs into individual cells. Microsoft pitched Sparklines and improvements to Excel's PivotTables as compatibility wins for Mac users who need to share spreadsheet documents with co-workers running the Windows version of Office.

Previously, Microsoft has made much of the debut of a ribbon-style interface in Office for Mac 2011, another feature borrowed from the Windows edition. Office for Mac 2011 will go on sale at the end of October. Microsoft has not yet set a definite date. however. Customers who purchase Office for Mac 2008 through November 30 will be able to download a free copy of 2011 when it's available.

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Update: Intel to buy security vendor McAfee for $7.68 billion

Intel said Thursday it plans to acquire security vendor McAfee in a cash deal valued at about $7.68 billion and aimed at enhancing the chip maker's mobile strategy.

Both boards of directors have approved the deal, and McAfee is expected to become a subsidiary within Intel's Software and Services Group. McAfee develops a variety of security software for end-users and enterprises, including antivirus applications, firewalls and intrusion protection systems.

Intel said that the current approach to security does not address the full range of Internet-connected devices, including TVs, cars, medical devices and ATM machines. "Hardware-enhanced security" will be needed to counter increasingly sophisticated threats, said Rene James, Intel senior vice president, and general manager of the group.

McAfee CEO Dave DeWalt wrote in a blog post that "current cybersecurity model isn't extensible across the proliferating spectrum of devices."

"The industry needed a paradigm shift, incremental improvements can't bridge the opportunity gap," DeWalt wrote. "There is no better partner that we could have found than Intel."

Intel president and CEO Paul Otellini said during a conference that the deal illustrates what Intel regards as the three most important pillars of computing today: energy efficiency, Internet connectivity and security. Everywhere Intel sells a microprocessor is also an opportunity for a security sale as well, he said.

"We believe that security will be most effective when enabled in hardware," Otellini said. Intel will continue to work with other security vendors as well, he said.

Security technology needs to be combined with hardware in order to deter new threats, said James during the call. Intel will bolster its hardware with technology that comes from McAfee's current products, she said. The first results of that collaboration will be announced next year, she said.

The deal is expected to close after McAfee shareholder approval and regulatory clearances. Intel said the acquisition will have on a GAAP basis a slightly dilutive effect on its earnings in the first year of operations and a flat effect in the second year.

McAfee generated approximately $2 billion in revenue in 2009, and has about 6,100 employees. The company has had double-digit growth over the last year and was an attractive acquisition target, and rumors had been circulating for some time, said Ruggero Contu, senior research analyst at Gartner.

But an acquisition by Intel is surprising, Contu said. "I would have thought that in terms of synergies, I would have thought other players would have" been better positioned to integrate McAfee into their operations, he said.

Intel would be wise to continue McAfee's successful consumer security software business, as it has been bringing in increased revenue, Contu said. In terms of the overall security market, the acquisition is likely to have an impact on Symantec, as it is McAfee's most direct competitor, Contu said.

"We'll see how it shakes out," Contu said.

The deal brings Intel a wealth of security technologies, such as encryption, data loss prevention and Web messaging, said Chris Christiansen, program vice president for analyst IDC. McAfee has a large network security business, and its engineers will now have access to Intel's manufacturing processes, advanced engineering capabilities and chip designs.

The premium price paid by Intel for McAfee indicates there may have been a bidding war, which is likely to spark a frenzy of acquisitions from other players such as Oracle and IBM, Christiansen said.

"I can't imagine that the unsuccessful bidders will simply just go away," he said.

(Marc Ferranti contributed to this report.)

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Singapore's anti-corruption bureau quiet on Apple kickback case

Singapore's Corrupt Practices Investigation Bureau (CPIB) declined to say whether it has opened an investigation following allegations of an elaborate kickback scheme that involved an Apple employee and at least six Apple suppliers, including three Singaporean companies.

U.S. authorities have charged former Apple employee Paul Shin Devine, a U.S. citizen, and Andrew Ang, a former employee of Singapore's Jin Li Mould Manufacturing and a Singaporean citizen, for their alleged involvement in the scheme, which involved trading confidential information about Apple's product plans and supplier prices in exchange for payments of more than $1 million.

"CPIB is unable to comment on the case against Paul Shin Devine and Andrew Ang as it is currently handled by the U.S. authorities," CPIB spokeswoman Tan Chai Ying wrote in an e-mail response to questions about whether the Singaporean government is also investigating the alleged kickback scheme.

"The Singapore government takes a strong stance against corruption. CPIB will look into all information received in regard to corruption offences and take necessary action against the parties involved if evidence is found," she wrote.

Under Singapore's anti-corruption law, company employees and others can be prosecuted for corruption if they give, solicit or receive bribes and kickbacks. In addition, CPIB has the power to carry out searches and arrest suspects in corruption cases.

While the indictment filed against Devine and Ang in the U.S. does not name the suppliers alleged to have been involved in the scheme, the six companies -- including three based in Singapore -- are named in a civil suit that Apple brought against Devine over the alleged kickback scheme.

The civil suit claims Devine received "illicit payments, kickbacks, bribes and other things of value" from Jin Li Mould Manufacturing, Glocom/Lateral Solutions and Fastening Technologies, as well three other companies based outside Singapore, for access to confidential information about Apple's product plans and competitor pricing information that helped them win contracts from Apple on favorable terms.

On Monday, Jin Li Mould Manufacturing CEO Andric Ng declined to comment on the allegations against his company. Glocom/Lateral Solutions and Fastening Technologies could not immediately be reached for comment. Devine pleaded innocent to the charges in a U.S. court on Monday.

In a region where corruption is a persistent issue, Singapore stands out as being relatively free of the problem. Transparency International ranked Singapore third on its 2009 Corruption Perceptions Index, which ranks countries and territories with the lowest perceived public-sector corruption.

The U.S. ranked 19th in the survey, while the only other two Asian markets that appeared in the top 20 were Hong Kong, which ranked 12th, and Japan, which tied the U.K. for the 17th spot.

Singapore's closest neighbours, Malaysia and Indonesia, ranked 56th and 111th in the Transparency International rankings, respectively.

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Experts argue over merits of 7-inch Apple iPad rumours

Analysts split on Tuesday over reports that Apple may be readying a smaller iPad for launch later this year.

According to a story published Tuesday in Taiwan's Chinese-language Economic Daily News financial newspaper, Apple is prepping a 7-inch iPad for a holiday launch later in 2010. The newspaper cited sources that said several Taiwanese component makers have won contracts for a smaller iPad.

IDG News Service reported on the Economic Daily News account earlier yesterday.

Last week, DigiTimes, an English-language IT publication also based in Taiwan, claimed that component manufacturers were preparing for a smaller iPad to be launched in early 2011. The new model would have a screen in the 5-inch to 7-inch range, said DigiTimes, and would be priced under $400.

But a pair of U.S. analysts disagreed on whether Apple would add to its iPad lineup by shrinking the current model.

"If they can find 7-inch screens where they can't find 9.7-inch screens, it would let them have a larger sell-through," said Ezra Gottheil. Last month, an Apple executive said the company is "selling every iPad unit that we can make," but the tablet remains backordered, with shipping delays of between three and five business days on Apple's online store.

By Gottheil's logic, if Apple could get its hands on more screens, no matter what the size, they could sell more tablets.

Apple sold 3.3 million iPads in the first three months of the tablet's availability.

"Secondly, a smaller screen would give them the ability to knock a few dollars off the price," added Gottheil. "If they could drop it by $100, they could make it more of a holiday gift."

A lower price - the current iPad starts at $499 - would also put it closer in price to the recently reduced e-readers from Amazon and Barnes & Noble. The former's next-generation Kindle, which ships 27August, is priced at $139, $10 under B&N's least-expensive Nook.

Apple would probably have to strip out some components and drop features to make a $400 price for a 7-inch iPad if it wanted to maintain the estimated 40 per cent margin on the larger model, said Brian Marshall, an analyst with Gleacher & Co.

But Marshall doesn't see the need for a petite iPad.

"They have such a good lineup now, there's no void and they cover every price point," Marshall said, pointing to the iPhone 3GS, now discounted to $99; the iPhone 4 and iPod Touch lines that start at $199 and run to $399; and then the current iPad, which costs between $499 and $829.

"I just don't see any holes in their portfolio that they need to fill," Marshall said.

Click here for a free digital sample of Macworld’s Complete Guide to the iPad. Packed with tips and tricks, this essential guide gives you the lowdown on all the iPad’s features, plus the top 50 apps you must download.

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Opinion: The misplaced schadenfreude of 'antennagate'

There’s already been more written about the so-called “antennagate” affair than it probably deserves. At this point, I’ll leave the final verdict to the mass-market consumers, who appear to be unfazed by the story and apparently keep purchasing the iPhone 4 in large numbers with little complaints.

I’ve been hesitant to write on the topic, as it seems everything that could be written about it has been written… several times, in fact.

I did ask the representatives of one media outlet if they didn’t feel silly running stories about every aspect of this story, including what bookmakers were setting odds for at the Apple press conference. Their response made it clear why this was happening: the Apple stories they posted generated the most traffic of any stories posted on a given day.

Enjoying the mayhem

There is, however, one topic I’d like to explore briefly. (And yes, I appreciate the irony of that given what I said just a few lines up.) It’s the schadenfreude, or taking pleasure in the misfortune of others, that seems to have permeated the stories about the iPhone 4 antenna from day one. Sometimes it’s subtle, and sometimes it’s quite explicit. But it seems that a lot of folks are enjoying Apple’s troubles of late.

I’ve thought a lot about why that’s the case. Perhaps it’s because Apple is no longer the scrappy upstart competing against the giant Microsoft empire. (It seems on any given day, Apple’s market cap can actually be larger than Microsoft’s.) Perhaps there’s a measure of success that we in this country culturally accept, but only up to a point: cross a certain threshold and it’s game on. (We’ve certainly seen that type of behavior before, whether it’s IBM, Microsoft, Google, or the ’78 Yankees.) Perhaps it’s that Apple is not perceived as the most humble of companies, coupled with the notion that pride goes before a fall.

I’m not sure any of it matters in the long term. But one thing is clear: Apple’s age of innocence in the mass media is over. Every move that Apple makes is going to be analyzed. Every word an Apple executive utters (or emails late at night) is going to be scrutinised. Every potential flaw, problem or mishap is going to be put under a microscope and examined from every possible angle.

It may not be fair. It may not be right. But that’s the way it’s going to be from now on. (Of course, if you look at all the media coverage that Apple is able to generate just by being Apple, perhaps that’s a fair trade-off.)

Mudslinging won't work

What was most interesting to me about “antennagate” was the response of Apple’s competitors, most of whom argued that their products were superior to Apple’s design while at the same time denying that any similar problem occurs with their devices. (In fact, a number of phones do indeed come with warning stickers about where not to touch them if you want to keep a strong signal.)

While the media, analysts, press and pundits will likely continue to weigh in on every single aspect of the situation—the merits of Apple’s design, the language and tone Steve Jobs used at the Apple press conference, the timing and departure of Apple executives—and debate a multitude of conspiracy theories, I’d advise Apple’s competitors to use caution in their tone and how they react.

It’s important to understand this: the mass market appears completely unaffected by this story. As I write this, it’s still quite hard to find an iPhone 4 to purchase.

Rather than focus on Apple, antenna design, and attenuation, Apple’s competitors in the smartphone business should be telling more compelling stories about why their devices and platforms are best-of-breed. That’s the only argument that will ultimately win the hearts and minds of users, period. Bashing Apple’s devices simply won’t work.

If Greek mythology has taught us anything, it’s just how dangerous hubris can be. I’d argue schadenfreude is right up on the list of traits to be avoided at all cost. The market is not a zero-sum game. Apple need not fail for others to succeed and compete effectively.

Remember: the misfortune you rejoice at today might well befall you tomorrow. Worse, your enemies’ misfortune might not turn out to be a misfortune at all in the long run. At that point, it’s no longer schadenfreude—it’s just plain old grumpiness. We don’t need even need the ancient Greeks to tell us how useless that emotion is.

[Analyst Michael Gartenberg is a partner at the Altimeter Group.]

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Rivals seek to beat Apple iPhone by offering two keyboards

The Motorola Droid 2 smartphone Droid 2, an Android smartphone , which Verizon Wireless put on sale on Thursday, is a prime example of how major U.S. wireless carriers are trying to broaden the appeal of smartphones to business users and consumers alike by offering devices that have both touchscreens and physical keyboards.

For its part, AT&T last week put on sale the new BlackBerry Torch 9800 , which has a more traditional keyboard that slides out beneath a touchscreen. And on Aug. 31, Sprint will debut the Samsung Epic 4G, which features a horizontal slideout keyboard beneath a touchscreen. The Epic 4G will sell for $250, which is $50 more than the price of the Torch and Droid 2 after rebates.

All three of these new smartphones defy what the hugely successful Apple iPhone has done with its touchscreen-only keyboard.

"It is incumbent on carriers to offer alternatives to soft-keyboard-only devices like iPhone," said Jack Gold, principal analyst at J.Gold Associates. "I think that is what you are seeing with Droid 2, Torch, Epic, etc. I am not at all surprised that carriers want to make sure they offer the maximum choice to provide optimum devices for their customers, particularly since they want to keep all customers happy and avoid churn."

To promote Droid 2's usefulness to business users, Verizon Wireless, Google and phone maker Motorola have launched a slick TV ad called "Digits." The ad depicts a young worker in a board room flipping open a Droid 2's keyboard and then typing with robotic fingers at lightning speed on a "more intuitive keyboard" that transforms him "into an instrument of efficiency."

All of the major US carriers have tried for years to develop a large portfolio of phones to appeal to different user groups. But with these three phones, they seem to be trying to fill a single device with enough features to address the widest range of user needs.

Among other things, they're acknowledging that the young people who have been such avid users of texting for the past several years are now out of college and in the work force.

For example, Blackberry maker Research In Motion seems to have recognized that while its products resonated with an entrenched group of business users for years before texting became popular, it's now time to offer a BlackBerry for a new generation. So with a new touchscreen and an updated operating system, RIM's new BlackBerry Torch 9800 offers more than the traditional physical keyboard of its predecessors.

So far, Droid 2 has been the most heavily marketed of the new wave of iPhone challengers. In an example of how Google, Motorola and Verizon want to make sure they reach as broad a market as possible, they are releasing an R2-D2 limited edition version of Droid 2 that's designed to appeal to fans of the Star Wars film saga. A Verizon spokeswoman on Friday wouldn't confirm a shipment date, except to say it will be available online in September.

Photos from the Star Wars Celebration V conference in Orlando showed a preview of the R2-D2 smartphone, along with a sign saying it would be available Sept. 30. Engadget and other sites ran a photo of the sign with the date and a photo of the preview device .

Some observers have said they wished the special edition model looked more like the droid from the movies, but they also conceded that they would probably buy one if the price was right. Verizon hasn't divulged the price, however.

There appear to be plenty of Torch and Droid 2 devices available so far, based on spot checks of AT&T and Verizon stores and Web sites. Sprint said it has delayed a planned mid-August release of the Epic to build up a stockpile in light of a global display screen shortage.

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Details about Intel's upcoming smartphone chip emerge

Details have emerged about Intel's upcoming Medfield chip platform for smartphones, which is due for release in 2011 and will succeed the company's existing Moorestown platform, which was originally announced in May.

The Medfield platform will include a power-efficient version of the Atom processor, which will be integrated inside a chip code-named Penwell, according to a document originally posted on Intel's website, which is still available on Google cache.

In a separate document on its website dated 9 August, Intel has also hinted at some of Penwell's Atom-based microprocessors running at speeds of 1.80GHz and 1.86GHz. Current CPUs in the Moorestown platform chips - also called the Z600-series chips - can run at up to 1.5GHz for smartphones and up to 1.9GHz for tablets.

Intel spokeswoman Claudine Mangano declined to comment on details surrounding the Medfield chips.

"Intel has not formally announced the product, so any data ... is very preliminary and for enabling purposes in a non-product stage," Mangano said. The new chips will deliver substantial reductions in size and power consumption compared to previous product generations, she added.

Intel has long talked about its desire to enter the market for smartphones and mobile devices that demand smaller and more power-efficient chips. Most smartphones today come with power-efficient chips that include processors designed by Arm, such as recently launched devices like Motorola's Droid X, Apple's iPhone 4 and HTC's Evo.

Intel has been consistently driving down size and power drawn by its Atom chips, but has been unable to compete with Arm on power efficiency. The Moorestown platform is designed for tablets and high-end smartphones, and the Medfield platform could be a step forward in the company's efforts to better compete with Arm. The company has already announced it is developing new Atom processors for tablets code-named Oak Trail.

The Penwell system-on-chip will integrate many components and be much smaller than its predecessors, according to Intel's now-removed document. It will provide improved battery life to devices and require much less battery power, though numbers were not immediately available.

The system-on-chip will deliver four times better graphics compared to its predecessors, according to the document. Intel's Moorestown graphics core is capable of encoding video at 720p and decoding video at a 1080p resolution.

The company has already said that the Medfield chips will be manufactured using the 32-nanometer process, which could help deliver additional power-saving and performance benefits.

Mobile-device sales totaled 326 million units in the second quarter, a 13.8 percent increase from the second quarter in 2009, according to Gartner. Smartphone sales accounted for about 19 percent of the total mobile-device sales, the research firm said.

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India may put restrictions on Skype and Google (Updated)

India may ask Google, Skype and other online service providers to allow the country’s law enforcement agencies to access communications on their networks, the head of an Internet association said on Friday.

On Thursday the government said it will ask service providers in the country to ensure that some BlackBerry services should be made accessible to its law enforcement agencies by Aug. 31, or face a block of these services.

Rajesh Chharia, president of the Internet Service Providers Association of India (ISPAI), said that at a meeting he attended about a month ago of the country’s Department of Telecommunications, it was discussed that other online services besides BlackBerry would also be asked to provide access to India’s security agencies.

The Indian government’s public threat against BlackBerry is running in parallel with an as yet unannounced decision to pursue similar concerns with Google, Skype and other communications services, The Financial Times said in a report on Friday, citing a government report.

A spokesman for the Department of Telecommunications said he was unaware of the decision.

Google said it had heard nothing from the government.

The Indian government is asking for access to BlackBerry’s enterprise server and its instant messaging application.

India wants to intercept mobile and online communications as part of its work against terrorist groups. Security agencies in the country have found that terrorists are increasingly using email, instant messenger, and mobile phones to plan attacks.

Although ISPAI is in favor of self-regulation of the Internet, Chharia said that given the threats India faced, it was reasonable for some of these online services to provide access to law enforcement agencies, under certain conditions. Some of the technology providers tend to take Indian law very lightly, he added.

Under Indian law, service providers have to give law enforcement agencies access to communications on their networks, under certain conditions, including by providing the keys for their decryption.

The government appears to be planning to clamp down on all services that bypass its monitoring system, starting with BlackBerry, Chharia said.

BlackBerry vendor Research in Motion said in a statement on Thursday that it did not want to be singled out by the Indian government.

RIM said that carriers must be technology and vendor neutral and not provide greater access to BlackBerry data compared to other communications companies.

The carriers' capabilities should "be limited to the strict context of lawful access and national security requirements as governed by the country's judicial oversight and rules of law," RIM said. The company maintains a consistent global standard for lawful access that does not include special deals for specific countries, it added.

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Griffin offers trio of Apple iPhone, iPod, iPad accessories

Griffin Technology has introduced three accessories designed to enhance the Apple experience, particularly for those on the go.

The makers of the popular iTrip, PowerMate, iFM, iMic and Evolve, aims to keep iPhone, iPod and iPad users connected wherever they are.

The three new Griffin accessories are:

RoadTrip
With a complete redesign, the new Griffin Road Trip promises to unlock all the entertainment options your iPhone or iPod can deliver. SmartScan technology ensures the clearest radio frequency is selected with the touch of a button insists the makers. The device also charges users iPhones or iPods, while tactile buttons give feedback designed to allow you to skip through songs without taking your eyes off the road. Available from Tesco, the Griffin RoadTrip has a SRP of 59.99.

XL USB to Dock Connector Cable
The nearly three meter cable extends your iPhone, iPod and iPad usage, allowing users to more easily attach Apple devices to wall sockets and USB outlets. Heavy-duty 20-gauge conductors easily handle the required 2.1 amp power for the iPad, whilst the durable cable jacket protects wire cores and resists kinks and tangles insists Griffin. The Griffin XL USB to Dock Connector Cable is available from Apple Stores nationwide, with a SRP of 19.99.

PowerBlock for iPad
Energy Star-certified, the PowerBlock for iPad charges iPhone, many iPod models, or any other USB-chargeable device. This slimline charger is convenient to carry, while the LED light indicates when charging, and the cable detaches for a potentially useful 3.25 feet USB dock connector cable. The Griffin PowerBlock for iPad is available from Currys and has a SRP of 22.99.

In July, Griffin announced a new compact lightweight portable speaker for iPhone and iPod that doesn't require an external power source of batteries. The Griffin Travel Speaker is powered by the iPhone or iPod battery. More details can be found here. Founded on Paul Griffin's kitchen table in 1992, Griffin Technology now offers a wide range tech based accessories.

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Facebook bug could give spammers names, photos

Facebook is scrambling to fix a bug in its website that could be misused by spammers to harvest user names and photographs.

It turns out that if someone enters the e-mail address of a Facebook user along with the wrong password, Facebook returns a special "Please re-enter your password" page, which includes the Facebook photo and full name of the person associated with the address.

The feature helps people understand if they've mistyped their e-mail address at login, but it could be misused by spammers to get information on Facebook's 500 million users.

A spammer with an e-mail list could write a script that enters the e-mail addresses into Facebook and then logs the real names. This could help make a phishing attack more realistic, said Atul Agarwal, the researcher who posted a note about the issue (along with a sample script that could harvest names) to the Full Disclosure mailing list on Tuesday.

Someone could also use the feature to generate random email addresses and check to see if they really worked, Agarwal said.

The login page shows images of people, even when they've properly set their privacy settings to keep this information private, said Agarwal. "Harvesting this data is very easy," he said.

Facebook blamed the issue on a recently introduced bug.

"We have technical systems in place to prevent people's names and photos from showing to unrelated users upon login, but a recently introduced bug temporarily prevented these from working as intended," a company spokeswoman said in an e-mail message. "We are already working on a fix and expect to remedy the situation shortly."

Scraping Facebook for this type of information is prohibited, she added.

Scammers have taken a special interest in Facebook over the past few years, and criminals such as the people who wrote the Koobface worm may well take an interest in the bug, said Roger Thompson, chief research officer with antivirus vendor AVG.

"I would expect that the Koobface gang will be racing to try to take advantage of this before Facebook patches it," he said via instant message. "It'll be interesting to see who wins."

(Follow Robert on Twitter at @bobmcmillan. Robert's email address is robert_mcmillan@idg.com)

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South Korean police raid Google's office over Street View

South Korean police on Tuesday raided Google offices in an investigation of the company's Street View mapping project, the latest instance of a country scrutinizing the company's collection of Wi-Fi data

The Korean National Police said in a statement that they have launched an investigation into unauthorized data collection and illegal wiretapping.

Google officials in London confirmed the raid. "We will cooperate with the investigation and answer any questions they have," the company said in a statement.

The investigation comes as Google has resumed collecting Street View imagery in several countries after facing queries from regulators in others over the program.

Following a request for an audit by German data protection authorities in Hamburg, Google admitted in May that it had collected information such as SSID (Service Set Identifier) and MAC (Media Access Control) addresses from unencrypted Wi-Fi routers.

The admission started a spate of inquiries into the program in other countries including France, Italy, the U.K., the U.S., and Spain. The investigation in Germany is ongoing.

The company, while admitting the data collection was a mistake, said it only collected fragments of personal Web traffic as its Wi-Fi equipment automatically changed channels five times a second, although Wi-Fi networks can carry several megabytes of data per second.

The Wi-Fi data collection software since been removed from the vehicles collecting imagery, the company has said. Google resumed collecting Street View imagery last month in Ireland, Norway, South Africa and Sweden and in the U.K. last week.

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CineXPlayer brings Xvid video support to Apple iPad

One of the long-time limitations of Apple's iOS devices has been their inability to deal with media files in formats beyond those few that Apple prescribes. But a new app, NXP Software's CineXPlayer, now lets iPad users play video files encoded in the popular Xvid format.

Xvid files are often distributed in AVI containers; on the Mac, additional codec software such as Perian is usually required to play them back.
CineXPlayer doesn't need any such fiddling, however: all you have to do is load your movie files onto the iPad using iTunes's built-in File Sharing feature. There's no need to convert the files to MP4 format, and there's even an advantage over play-anything streaming apps such as Air Video: having a local copy means that you can even watch the videos when you don't have a network connection.

CineXPlayer's user interface is pretty spartan: by default, the app shows you a list of the video files you've transferred--tap any of them to begin playback. The controls are a little less elegant than the iPad's own Videos app, but you can play, pause, adjust the volume, switch to fullscreen mode, and scrub through a video with ease. You can also delete videos from inside the app just by swiping over them, as you would a message in Mail.

As CineXPlayer's developer admits, not all Xvid files play back equally right now: MKV containers or videos with AC3 sound are specifically called out, but problems may exist with other files as well. Two out of three movies I loaded onto the iPad would not play at all, but at least CineXPlayer gave me an option to e-mail the developer with information about the video. NXP says it will improve support for in future versions.

CineXPlayer is free and requires an iPad running iOS 3.2 or later. CineXPlayer is currently not listed in the UK Apple Store.

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New iPhone iOS 4 beta shows FaceTime via email

Rumours suggest Apple's next mobile OS will be available to all non-iPhone devices sooner than later, including email based FaceTime video calling.

MacRumors.com reports that iOS 4.1 Beta 3 adds a new option in the iOS 'Contacts' application, which offers users a chance to make FaceTime calls using either a phone number or an email address. "This would allow FaceTime compatibility with devices not associated with a phone number such as future camera-enabled iPads and iPod touches," MacRumors notes.

The recently introduced iPhone 4 has two built-in cameras, one on the front above the display and one on the back next to the LED flash. The front camera has been tuned for FaceTime, and offers the right field of view and focal length to focus on your face at arm’s length, showing users in the best light insists Apple. Currently iPhone 4 users need only click on 'Contacts' and tap the FaceTime button to start a call.

Apple are expected to refresh the iPod range next month, including a new iPod touch, while a 7-inch mini-iPad could also be announced.

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BBC staff lose £240,000-worth of laptops and mobiles

BBC staff have lost laptops and mobile devices worth more than 240,000, a Freedom of Information request has revealed.

The FOI request, made by IT security company Absolute Software, unveiled that BBC employees reported 146 laptops, 65 mobile phones and 17 BlackBerrys going missing between April 2008 and March 2010.

The BBC said that the lost laptops were valued at a total 219,000, the mobiles 12,913 and the BlackBerrys 9,106. The total value of losses, 241, 019, is equal to 1,656 colour TV licences costing 145.50 each.

However, while 19 of the missing items, 15 laptops, three mobiles and one Blackberry, worth a total 23,450, were recovered, the corporation said that this left the final bill for missing equipment at 217,569.

Dave Everitt, European general manager at Absolute Software, said: “It is shocking that any organisation could lose so much equipment.

“This technology is paid for by the licence payer and employees should be far more careful about how they handle it.”

Furthermore, although the BBC said it investigated one employee over the theft of a laptop, it did not say if any employees were disciplined for the losses.

In a statement, the BBC said: “The portability of laptops and phones means that in any large organisation there is an inevitable risk of theft.

“The BBC Investigation Service is involved whenever an allegation of theft is made, and where appropriate the police are informed and prosecutions brought where we can.”

In addition, the BBC said that the mobile devices that it issues to staff are “appropriately protected” and that most small mobile devices have a remote wipe facility.

The Information Commissioner’s Office will usually carry out an investigation if laptops and mobile devices containing personal data go missing. However, the BBC would not confirm if any personal data was on the lost devices.

"We use encryption as part of a range of security measures but we wouldn't comment further on matters of security," said a spokesperson for the BBC.

Lost or stolen hardware led to the NHS being responsible for the highest number of data breaches as of May, when the ICO recorded more than 1,000 data breaches reported.

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Zeus malware used pilfered digital certificate

Researchers at Trend Micro have found that a widespread piece of malware used a digital certificate from a competing security company's product in an attempt to look legitimate.

The malware is Zeus, a bot that is used to steal all kinds of data from computers and has proved to be a tricky application for security companies to detect.

The version of Zeus detected by Trend Micro had a digital certificate belonging to Kaspersky's Zbot product, which is designed to remove Zeus. The certificate - which is verified during a software installation to ensure a program is what it purports to be - was expired, however.

Also, the malware's hash value, a unique numerical identifier based on the source code for applications, was incorrect, as it was derived on the Kaspersky tool, according to a blog post written by Trend Micro.

Stealing digital certificates is a frequently used technique by malware writers. Two versions of the Stuxnet malware -- designed to steal data from Siemens industrial machines -- also used digital certificates from other software companies. Once it was discovered, the certificates were revoked.

"Certificates, unfortunately, can be copied by any cybercriminal with intent from any company," Trend wrote. "The antivirus company mentioned in this instance could not have prevented this incident from taking place, and it is likely that we will continue to see more such incidents in the future."

Trend said it informed Kaspersky of the certificate issue. The problem again shows the lengths to which Zeus creators go to keep the malware undetectable. Experts at the security company Trusteer said security software suites are often only able to detected about 10 percent of the active Zeus variants circulating.

(Send news tips and comments to jeremy_kirk@idg.com)

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ABI Research: A quarter of mobile phones will be smartphones by 2013

More than one-fourth of mobile phones sold in 2013 will be classified as smartphones, according to ABI Research.

ABI released its projections today as part of its mid-year report on the smartphone market. Currently ABI projects that 19 per cent of mobile phones sold in 2010 will be smartphones, up from 16 per cent of all mobile phones sold in 2009. ABI defines a smartphone as a cellular phone that runs on a high-level operating system such as BlackBerry OS, iPhone OS, Android, webOS or Symbian.

According to ABI, Symbian has remained the most popular smartphone operating system in the world so far this year, as Symbian-based devices have sold 25.8 million units worldwide through the second quarter of 2010. Devices based on Google's open-source Android operating system, meanwhile, have made a giant leap forward in the last quarter, selling 11.3 million units in the second quarter. This total is more than double the 5.5 million Android-based units sold in the first quarter this year and is just ahead of the 11.2 million BlackBerry OS-based units sold in the second quarter of this year.

ABI's finding on the explosion of Android sales dovetails with research released this week by Nielsen, which reported that Android-based devices had blown past the Apple iPhone in the United States, accounting for 27 per cent of all smartphones sold in the U.S. in the first quarter 2010.

In terms of sales of device manufacturers, ABI finds that Nokia is far and away the king of the worldwide smartphone market, selling roughly 45 million smartphones this year, more than twice as many as its closest competitor. Research in Motion came in a distant second, selling around 22 million smartphones in the first half of 2010, while Apple came in third at around 17 million units sold this year.

Although both HTC and Motorola trailed behind Nokia, Apple and RIM in terms of overall smartphone sales, ABI says those two companies have experienced significant growth this year due to their success in marketing smartphones based on Google's popular Android platform. HTC, which manufactures the Droid Incredible and the Evo 4G, has done particularly well this year and has seen its smartphone sales surge from 3.3 million in the first quarter of 2010 to 5.4 million in the second quarter.

ABI Research analyst Kevin Burden says that the recent successes of the HTC Evo 4G and the Motorola Droid X also show that the industry is moving more toward larger devices that showcase high-definition touchscreens.

"We're through with scaling down the size of devices," he says. "A lot more people are comfortable with phones that are PDA-sized."

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Opinion: New Apple iPad, iPhone, and iPod on the way? Rating the rumours

Some interesting Apple rumours have surfaced predicting new Apple products on the way including revamped iPods, a 7-inch iPad and the next iteration of the iPhone. The new rumours are courtesy of an anonymous source that spoke with gadget blog, iLounge. It's always wise to take these purported leaks with a grain of salt, but iLounge argues its source has been right about other Apple gadgets before including the iPad.

With that in mind, here are the highlights from the latest rumours as well as a best guess about what's likely and what's not.

New iPods

We could see a revamped iPod Nano, a new iPod touch and possibly even a 1.7-inch touchscreen iPod to replace the Shuffle, according to iLounge. The gadget blog is also guessing Apple might shave half an inch off the current iPod Touch's 3.5-inch screen and go with a 3-inch display instead.

Rating: Somewhat Likely

It should be no surprise that iPods are next up for a refresh since Apple regularly announces a fall event touting new iPods and a revamped iTunes. In 2009, for example, Apple launched the camera-enabled iPod Nano, a cheaper iPod Touch and iTunes 9. A 1.7-inch touchscreen for the Shuffle sounds a little far-fetched, but a new Touch is likely, especially with persistent rumors about a camera for the device.

As for the Nano, that device has already been revamped twice in as many years. Unless it's getting an amazing new feature set or a touchscreen, I'd be surprised to see a Nano refresh yet again.

7-inch iPad

Rumour has it we'll see a smaller iPad with a 7-inch screen debut later this year or early 2011 at the latest. No specs were mentioned such as a front-facing camera for FaceTime or what the device's screen resolution would be.

Rating: Makes Sense, Sort of

Since this is the iPad's first year in the wild it's hard to know what to make of this rumor. The iPad debuted in January, and if the company plans on a yearly release cycle for the device an early 2011 launch makes a lot of sense. Then again, a new iPad might just be the trick to liven up the company's annual iPod event. The iPod may have been popular once, but these days Apple reports declining sales for its iconic MP3 player almost every quarter.

As for the 7-inch screen size, that's a rumor that harkens back to the iPad's pre-launch days as the rumorued Apple Tablet. But now that the iPad has launched, an iPad Mini rumor feels a lot like the iPhone Nano rumours that have never come to pass.

iPhone 5 in January

The next iPhone could be out as early as January in an attempt to overcome the antenna issues that plagued the iPhone 4, iLounge's source says.

Rating: No Way

Even iLounge isn't buying this one, and it's not hard to see why. A next-generation iPhone coming in January ranks right down there with rumorus that Apple delayed the white iPhone 4 to solve the death grip issue.

The fact is, Apple may be a little miffed about the PR fallout from the iPhone 4, but the sales numbers and user satisfaction levels for the device tell a different story. Apple sold 3 million iPhone 4 devices during the first three weeks the handset was available. A recent study by the Nielsen Company found that 90 per cent of iPhone users would stick with Apple's device when it comes time for their next smartphone purchase. To mitigate concern over the iPhone 4's antenna problems Apple recently announced a free bumper giveaway, and customers appear to be satisfied with the solution.

So what cause does Apple have to come out with a brand new iPhone in January instead of the typical June debut? Sure, Apple might look at revising the iPhone 4's antenna design if it can figure out an easy fix that doesn't throw the company's manufacturing process into chaos. But the iPhone 5 in January? Forget it.

Connect with Ian on Twitter (@ianpaul).

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Apple says Covent Garden Store has more iPhones and iPads than anywhere else

Apple has said that the Covent Garden Store will have more stock of iPad and iPhone 4 units than "any other place in the world" when it throws open its doors at 10am tomorrow.

Speaking at the Store's press unveiling, Apple's senior vice-president of retail said: "A couple of our products have been a little hard to get lately, the iPad has been pretty hard to find. There will be more iPads in this store Saturday than any other single place in the world. There are a lot of people who will become iPad owners this weekend."

And if you're struggling to get hold of an iPhone 4, you may be in luck too. "The iPhone 4 has been a little hard to get and, like the iPad, there will be more iPhones in this store than any other place in the world," said Johnson. "If you're interested in the iPad or iPhone, it's a great day to become an owner of these products."

However, previous Apple Store openings would suggest you'll need to be there early to get your hands on one, as queues often form long before the doors open.

Queuers will be rewarded though, as the first 4,000 punters through the door will be given a limited edition Apple T-shirt.

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Report: Google, Verizon in talks over net neutrality deal

Google and Verizon are reportedly in talks over how to manage network traffic, an agreement that could influence how U.S. regulators view network neutrality, according to a report in Thursday's Wall Street Journal.

Verizon confirmed the talks have been ongoing with Google and the U.S. Federal Communications Commission (FCC) for 10 months, the paper reported.

The agreement would apparently lay out principles around network neutrality, or the belief that service providers should not slow down certain kinds of traffic on their networks. The agreement, however, would reportedly allow service providers to prioritize traffic if customers paid for that kind of service, the paper said.

Network providers have maintained that they need to restrict some kinds of Internet traffic in order to keep a consistent quality of service across their customers bases. That has happened, for example, for file-sharing protocols such as BitTorrent. But it is feared that network providers may unfairly restrict other kinds of applications and protocols for competitive purposes. Wireless networks would not be subject to the agreement, according to the report.

The FCC has been talking to large service providers about how to regulate net neutrality. That has drawn criticism from groups such as Public Knowledge, whose communications director wrote that any agreement between Google and Verizon could be short-lived as it wouldn't have the force of law.

A Google-Verizon deal "is no substitute for a legally binding, comprehensive agreement in the public interest that covers not only network management but universal service and the other issues rolled up in the larger question whether the FCC even has the authority over broadband," wrote Art Brodsky on the group's blog.

Google officials contacted in London said they had no comment.

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Apple to fix iPhone web based jailbreak vulnerability with update

A flaw in Apple's iOS that allows iPhones, iPods and iPads to be jailbroken via the Safari web browser is to be fixed.

According to tech news site CNET, an Apple spokesperson said, "We’re aware of this reported issue, we have already developed a fix and it will be available to customers in an upcoming software update."

While jailbreaking allows a level of customisability and the potential to run third party apps not endorsed by Apple, Mac security specialists Intego and others have claimed the flaw leaves Apple device owners particularly open to attack.

"Visiting a web site set up to perform this jailbreak operation will lead to the download of a PDF file, which contains code that exploits this vulnerability," Intego noted on a blog post this week. "While this can be used to jailbreak a phone, it could also be used to compromise iOS devices. With a slight modification, this process could occur without any user notification or intervention." The browser based jailbreak applies to any Apple device running iOS versions 3.1.2 to 4.0.1.

Intego continues: "The corrupted PDF file (there is one file per iOS version and hardware model; there are a total of 19 different files) is embedded into a web page in an IFRAME so Safari will display it automatically without any user interaction. The PDF file contains an embedded Type1c font that is corrupted and that contains exploit code necessary to download the jailbreak code. (This can also contain other malicious code.) This code is then executed in the kernel space through an IOSurface (IOKit) memory allocation bug, obtaining root privileges and bypassing code signing protection and sandboxing."

This web based jailbreak puts iPhone, iPod touch and now iPad users at greater risk claims Intego as previously users needed to download a specific jailbreak application to achieve the same results. "The person who discovered this vulnerability should have kept it quite and contacted Apple, rather than make it public enough that now others can exploit it," insists Intego.

A second flaw has also been noted. According to Threatpost, Kaspersky Lab’s Security News Service, a problem in the Apple iOS kernel gives an attacker higher privileges once his code is on a targeted device, enabling him to break out of the iOS sandbox. The combination of the two gives an attacker the ability to run remote code on the device and evade the security protections on the iPhone, iPod touch or iPad warns Threatpost.

An advisory from VUPEN Security, a French research organisation adds: "These flaws are currently being exploited by jailbreakme to remotely jailbreak Apple devices. The website redirects the browser to the appropriate PDF exploit file depending on the device model and version and then executes a first stage payload. Once done, a second stage payload is executed to gain root privileges on the device by exploiting the kernel vulnerability."

Apple declined to say when the update would be available.

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Apple Store, Covent Garden: First photos

Apple's new Covent Garden, London will open on this Saturday 7 August at 10am, on the site formerly occupied by the Rock Garden live venue.

James Holland, Editor of gadget news website ElectricPig.co.uk was lucky enough to take the first shots of Apple’s new flagship store.

"Spread over two floors, the Apple Store Covent Garden features beautifully restored masonry, with stone arches inside and out," says James. "It’s a masterful blend of old and new, which suits the environs of Covent Garden perfectly."

The Apple Store, Convent Garden is at No. 1-7 The Piazza London, WC2E 8HA . Opening hours, apart from Saturday 7 August, when the store opens at 10am, are Monday - Friday 9am - 9pm and Sunday noon - 6pm.

More details including driving directions in central London and a map can be found at www.apple.com/uk/retail/coventgarden.

More exclusive photos can be found at ElectricPig.co.uk.

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FxFactory effects updated for Final Cut Pro, After Effects

On Tuesday, Noise Industries, which makes tools for post-production and broadcast work, released FxFactory Pro 2.5, an update to its plug-in suite for a number of video editing and special effects applications from Adobe and Apple.

FxFactory Pro adds more than 300 plug-ins to Final Cut Pro, Motion, Final Cut Express, and After Effects. The 2.5 update introduces eight brand new plug-ins for performing distortion, color creation, and transition alterations to footage. The new plug-ins are: Local Contrast, Vibrance, Genie Filter, Accordion, Origami (Square), Origami (Triangle), Genie Transition, and Page Turn.

This update also promises to improve on the quality, performance, and user interface for FxFactory Pro's slideshow generator. It is now easier to select and re-order images, and there are four new transition effects that can be automatically applied between images.

A free version of FxFactory - which drops the Pro badge - lets you try out many of the suite's free plug-ins, as well as free demos of the commercial plug-ins included in FxFactory Pro.

FxFactory Pro 2.5 is a free update to current owners of version 2.0, and it's available from Noise's Website. A license for new users costs $399, and it requires at least Mac OS X 10.5.8 Leopard or 10.6.3 Snow Leopard, as well as Final Cut Pro 6 or 7, Motion version 3 or 4, Final Cut Express 4, and After Effects 8, 9, or 10 (CS3, CS4, and CS5, respectively).

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The Web-based Apple iPhone iOS jailbreak tool - How does It work?

Hot on the heels of the U.S. Copyright office declaring jailbreaking smartphones legal, a new web-based iOS jailbreak tool has surfaced. The new tool makes the jailbreaking process leaps and bounds simpler than past PC-based tools. JailbreakMe.com works on iPhone, iPod touch, and iPad.

So how does it work? JailbreakMe.com first surfaced at the end of 2007, carrying a similar web-based jailbreak for iOS 1.1.1. The hack exploited a vulnerability in Apple's Mobile Safari browser to inject the jailbreak code into an iPhone or iPod touch. Interestingly, the original JailbreakMe.com hack for 1.1.1 would fix the mobile-Safari security hole after exploiting it. It didn't take long for Apple to release the iOS 1.1.2 update, officially sealing up the Mobile Safari bug for good. Jailbreakers from then on relied on PC-based tools to hack their devices.

Upon JailbreakMe.com's recent resurfacing, initial reports claimed the hack used a security hole in Apple's Mobile Safari once again. However, this has been confirmed to be false. Instead, the hack uses an exploit in a component for displaying PDF files. The hack simply uses Safari (which can obviously view PDF's) to load a custom file containing the jailbreak code. It is not clear at this time whether it seals the security hole afterwards.

Despite the recent legal ruling on jailbreaking, Apple maintains its firm policy against it. While the hack is reversible, your warranty may be voided and Apple will not support devices that are known to have been jailbroken. For that reason as well as obvious security risks, I'm sure we'll be seeing a fix for the PDF exploit in an official update soon.

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Fire reported near Hanover Street, Apple HQ (Updated)

Reports are coming into Macworld of a fire close by Apple's European headquarters, a short walk from the flagship Apple Store, Regent Street, London.

"About five fire engines arrived a little way down Hanover Street, and the insurance chap who was here said that was an alarm system that would call the fire brigade automatically - so was presumably a real fire," one eye witness told Macworld.

"A lot of employees passed us and went to Hanover Square, couldn't see any Apple outfits but could have been corporate." Apple Europe Limited is located at 1 Hanover Street, London, while Apple (UK) Limited is at 2 Furzeground Way, Stockley Park, Uxbridge.

"(We) saw firemen pulling some part of the door to the right of 1 Hanover Street down, and we both saw some smoke or steam come out of that door, into which firemen had been running and taking hoses. They have since pulled a load of stuff which looks like bits of wood and quite a lot of electrical cable type bits onto the pavement outside that door, and have been rolling their hoses up - water has been coming out so they've either been using them to pump water out or spray water in."

"The police have closed most of Hanover Street, from Regent Street to just beyond us in the direction of Hanover Square, and are still not letting people through at this moment, and the employees who came out earlier have still not gone back in. No major fire but there's certainly a lot of activity around here."

A second report said the Apple Store, Regent Street was briefly closed as firemen dealt with the nearby fire. Additionally, M Beville wrote on Twitter: "Apple iStore Regent's Street appears to have been evacuated along with much of the block. Damage appears to be on the Hanover St end."

Traumata noted: "Fire engines and police on Regents St/Hanover St, road outside our office is sealed off with police tape..." JEEdenborough tweeted: "Chaos on Regent street by apple store and Hanover street - plenty of fire engines, no sign of any smoke."

One Hanover Street was re-developed by The Crown Estate and Stanhope about five years ago and has an imressive listed Regent Street faade and a contemporary entrance on Hanover Street.

David Shaw, Head of Regent Street Strategy and Development at The Crown Estate, said at the time: "We’re delighted that Apple have chosen One Hanover Street as the location of their European HQ. This shows that this location adjacent to Regent Street with a Mayfair address and a Soho outlook, masses of space, the best transport connections in London and its international shopping brands and flagship stores, is a major attraction for corporate business."

The building is distinctive to passers-by as it includes external and internal art by Bruce McLean.

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