The SEC wants to know what Apple knew and when about Steve Jobs' health.
(Credit: James Martin/CNET)The SEC continues to be very interested in how the health of Apple CEO Steve Jobs went from "hormonal imbalance" to a six-month medical leave in a matter of nine days back in January.
The SEC was said to be reviewing the way Apple handled the disclosures surrounding the health of Jobs in late January, but a new Bloomberg report Wednesday says the federal inquiry is ongoing, citing "people familiar with the matter."
The issue is whether the Apple board knew the seriousness of Jobs' health problems yet made misleading statements to stockholders and the public. On January 5, to explain his absence from MacWorld, Jobs said he was suffering from a "hormone imbalance." Nine days later, Jobs wrote a public letter to say he was taking a medical leave of absence for six months because he had learned in the past week his health issues were "more complex than (he) originally thought."
We know now that Jobs had a liver transplant in April, and has since returned to work on a part-time basis. His doctors have said his health prognosis is good. But during that time, did any board members--two of whom were getting regular updates on Jobs' health status from his doctors--make inaccurate or misleading statements to investors?
There's been disagreement among experts in corporate governance on the proper way to handle the private health issues of the public faces of major companies. Berkshire Hathaway CEO Warren Buffett said in June that as the head of his company, his health is a "material fact" that investors need to know to make informed decisions.
Apple has disagreed, and hasn't even acknowledged that Jobs' liver transplant took place. The hospital in Tennessee where he had the operation was the one who officially confirmed it happened. But nobody is saying exactly why he needed it. In fact, Apple has refused almost all opportunities to discuss Jobs' condition ever since his gaunt appearance at the Worldwide Developers Conference in June 2008 aroused speculation that the pancreatic cancer he battled between 2003 and 2004 had returned.
There is no rule or regulation that says public companies must disclose the health problems of its chief executives. But there is the expectation that if a company does, it should be truthful. The SEC has not accused Apple of lying or misleading the public, but it is trying to determine just how much the company or its board members knew, and when.
The town of Maiden, N.C., really wants Apple to build its data center there.
In addition to the state's promise of an estimated tax break of $46 million over the next 10 years, Maiden and Catawba County are promising Apple a further $20.7 million if the company brings the data center to the town, according to an Associated Press report. The additional tax breaks would also run over the 10 years of the Apple contract.
Scott Millar, president of the Catawba County Economic Development Corp., said the county expects to collect $9.3 million in taxes over the 10 years, according to the AP.
North Carolina Gov. Bev Perdue signed a bill approving the tax break in early June. The state said the Apple server farm would have about 50 full-time employees, and one of the regulations that Apple would have to follow is that the average wage in the facility exceed the wage standard in the county where it's located.
The tax incentives for Apple were not without opponents. House Minority Leader Rep. Paul Stam was clearly upset with the incentives.
"They're playing us," Stam said in late May. "And they're going to keep playing us as long as you agree to be played. They'll either come or they won't come, but whether they come I can virtually assure you it will not depend upon whether you pass this bill."
Stam wasn't only referring to Apple. In 2007, Google signed a deal with North Carolina worth $600 million to open a server farm in the state for a promised $260 million worth of incentives over 30 years.
Apple's decision to cut prices across its MacBook lineup is about to be validated, according to an analyst's estimate.
(Credit: Apple)After several months of declining Mac sales compared against 2008 numbers, Apple looks to be back on track with its June Mac shipments, says Piper Jaffray analyst Gene Munster. His firm initially estimated that Apple would sell 2.2 million Macs during its third quarter of 2009, which ended in June. Munster now says he's "increasingly confident" in that report because Apple is having trouble keeping its new 13-inch MacBook Pro in stock.
The 13-inch MacBook was rechristened the 13-inch MacBook Pro at Apple's Worldwide Developers Conference on June 8, and at the same time, Apple lowered the price of its Mac notebook lineup, bringing the cost of the cheapest MacBook Pro, the 13-inch model, to $1,199.
Either because Apple didn't plan well enough, or customers were encouraged by the price, Apple's Web site shows that it's now a 7- to 10-day delay to order one of the 13-inch MacBook Pro configurations.
"We track product lead-times and our records show that Apple has never had a 7-10 day delay on its most popular 13" model, with the most recent significant delay being 5-7 days over 2 years ago in 9/08," Munster wrote in a research note Monday evening. "We see this as a sign that demand is outpacing the company's build expectations, and it may take several weeks to reach a supply demand equilibrium."
Some brick-and-mortar Apple stores were also showing shortages of the same model, he reports.
That's encouraging news for Apple, which up until June had seen its Mac sales slowly slide, albeit more gently than the rest of the PC industry. Apple desktops and laptop sales dropped in February and April, by about 1.8 percent from the same quarter a year ago. Munster now says he believes once June sales are tallied, Macs will have actually increased 1 percent for the third quarter.
We'll know for sure in two weeks. Apple is set to report its third quarter 2009 earnings on July 21.
One of the features that iPod Touch users have been requesting from Apple is a camera. According to reports, they may be getting their wish.
Apple's iPhone 3GS still-camera autofocus feature.
(Credit: Apple)While attributing its information only to a "sources in Asia," TechCrunch claims that Apple has placed an order for camera modules destined for the next version of the iPod Touch. The size of the order, according to TechCrunch, is "massive."
MacRumors is taking the camera information a step further, claiming that both the iPod Touch and iPod Nano will receive cameras when they are updated. New case designs, purportedly for the iPods, show a hole for the camera.
This isn't the first time rumors of iPods getting a camera have come up. In May, AppleInsider said that iPods would get cameras similar to those found in iPhones.
At this point the only handheld device from Apple with a camera is the iPhone. All three models of the iPhone come with a one.
In addition to its 3-megapixel still camera, the iPhone 3GS includes video recording and basic video-editing software, which allows chunks of video to be uploaded to YouTube or MobileMe.
An employee was shot Friday at this Apple store on Clarendon Blvd. in Arlington, Va. Customers were inside the store when the shooting happened, but no one else was injured, police say.
(Credit: Apple)Update at 11:25 a.m. PDT July 4: Police have released two surveillance tapes on YouTube of the suspect entering the store and of the suspect fleeing the scene.
An employee at an Apple store near Washington D.C. was shot and wounded Friday morning, police have confirmed. The victim, a 26-year-old woman, is currently at an area hospital recovering from a wound to the right shoulder. She is said to be in serious but stable condition.
Police say the shooting occurred about 10:15 a.m. EDT at the Arlington, Va., Apple store at 2700 Clarendon Blvd., in a busy, upscale shopping area. Some media outlets are calling the incident an attempted robbery, but Detective Crystal Nosal of the Arlington Police Department told CNET News it's "still too early to tell." The victim, Nosal said, "is obviously under medication in the hospital so interviewing is difficult."
Someone rang a doorbell at a back service entrance of the store, according to police. A short time later, another employee heard a gunshot.
Police say customers were present in the store at the time of the shooting, and employees helped them exit. No other people were injured.
Mike Evans, a software developer, was shopping for a new laptop at the time of the shooting and told The Washington Post at least a dozen employees and about 30 customers were inside when he heard what he thought was "boxes falling."
"It never crossed my mind that there would be a shooting there, in Clarendon," Evans told the newspaper. "An employee went to the back room and then we heard a woman's scream. I didn't wait to find out what happened."
Police are describing the suspect as a black male between 35 and 45, with a medium build and facial hair. He was wearing light-colored pants, a light-colored short sleeve shirt, and a dark baseball hat. He was carrying a handgun.
Police say the incident does not appear to be related to any other crimes in the area.
"We are shocked by this senseless act of violence and our thoughts are with this co-worker and her family," Steve Dowling, a spokesman for Apple's corporate headquarters in Cupertino, Calif., told the The Washington Post. "We're working with police to catch the person who committed this act."
Anyone with information about the shooting is asked to call the Arlington County Police Department tip line at 703-228-4242 or Detective Alan Lowrey at 703- 228-4199. Lowrey can also be reached via e-mail at Alowrey@arlingtonva.us.
Just as America gears up to celebrate Independence Day comes news that iPhone 3GS owners are getting some freedom of their own.
This is the site for purplera1n, which enables the installation of third-party software not approved for Apple's App Store.
George Hotz, who you may recall as the teenage hacker who originally unlocked the iPhone, has let loose a jailbreaking app for the iPhone 3GS code-named purplera1n. It enables the installation of third-party software not approved for Apple's App Store.
For now, purplera1n is Windows-only (but not Windows 7) and requires the latest iTunes installed, as well as an iPhone 3GS with the 3.0 firmware. In a Friday blog post titled "I make it ra1n," Hotz says a Mac version is "coming shortly."
Hotz notes that he normally doesn't make tools for the general public and would rather wait for the iPhone dev team to do that.
"But guys, what's up with waiting until 3.1? That isn't how the game is played," he chides on his blog. "We release, Apple fixes, we find new holes. It isn't worth waiting because you might have the 'last' hole in the iPhone. What last hole...this isn't golf. I'll find a new one next week.
John Biggs over at CrunchGear is among those who have already given purplera1n a go and declares the jailbreaking process "amazingly simple."
Why do we get the sense jailbreaking is going to be part of a whole lot of Fourth of July agendas? But take note: Hotz does caution that purplera1n is in beta and suggests backing up your data before running the app.
The haptic feedback patent, if approved, would bring the iPhone in line with rival handsets that provide localized tactile feedback.
(Credit: CNET )Three patent applications by Apple were published Thursday, and they cover technologies including haptics, fingerprint recognition, and RFID.
The haptic feedback patent, if approved, would bring the iPhone (and possibly other Apple devices) in line with rival handsets, which already provide localized tactile feedback in, for example, an onscreen soft keyboard.
Haptic technology gives people sensory feedback--in the form of a vibration or pressure--when they use a touch screen. Essentially, it makes touching a key on a touch screen more akin to pressing a real button.
The fingerprint recognition patent does not really have to do with authentication and security, but rather with identifying which fingers are in use, so as to associate different functions with different digits.
The RFID reader patent would see RFID-communicating circuitry integrated with the circuitry behind the touch screen itself.
All the above are just applications, though, so it could be a long while before we see any of this functionality built into iPhones or other Apple devices.
David Meyer of ZDNet UK reported from London.
OK, folks, it's time to step back, take a deep breath, and relax.
(Credit: Apple, Inc.)There has been a lot of talk today about Apple supposedly admitting it has heat issues with the new iPhone 3GS. The simple fact is that is not true.
What Apple did do is update a previously published tech note advising customers of the safe operating temperatures of the iPhone. Now, why would Apple do this? Because it does it every time it releases a device like the iPhone 3GS. It's standard procedure for the company to continually update tech notes for all its products.
If you're not familiar with them, tech notes are a way for companies to offer advice, best practices, workarounds, and other tidbits of information for their customers. They are not a way to advise customers of disastrous heat issues that they may have with a device.
For whatever reason, some people picked up the tech note today and wrote that Apple had admitted to an overheating issue. Here's what the tech note actually says.
Apple recommends that you don't:
- Leave the device in a car on a hot day.
- Leave it in direct sunlight for extended amounts of time.
- Use certain applications in hot conditions or direct sunlight for long periods of time, such as GPS tracking in a car on a sunny day or listening to music while in direct sunlight.
I hardly see that as an admission that there are heat issues. Best practices for operating the iPhone, sure.
I've been through several incidents over my 15 years of covering Apple where warnings were issued about products. Whether it was a notebook battery or a power cord, we usually learned of the problem from Apple, and they were always quick to respond and to offer replacements.
It is true that Apple has been quiet about this so far. If I had to guess, I'd say it's because they have not been able to replicate the heat issues some users are reporting.
You will know when Apple acknowledges a serious problem like this. It won't come in the form of a tech note. It will come directly from a company representative.
(Credit: Apple)The first day the Apple iPhone 3GS went on sale was the biggest sales day ever for AT&T, according to an internal memo sent to company employees that has since been published in various blogs.
That's right, iPhone Day 2009 beat out the two previous iPhone launch days, as well as surpassed traditionally heavy retail sales days such as Black Friday, the day after Thanksgiving, and December 26th, the day after Christmas.
The new iPhone may not have added a whole bunch of new bells and whistles, but it seems to have certainly been a crowd pleaser. It took Apple and AT&T about two and half months to sell one million phones. The iPhone 3GS hit that milestone in just the first weekend.
But it's hard to say for sure how many iPhones have been sold to date. Apple won't divulge sales figures until later this month when it reports its quarterly earnings. And AT&T has only said that it sold "hundreds of thousands" of iPhones during its pre-order process. But the company has indicated that iPhone 3GS sales were off the charts.
Of course, I may have found the one guy who went to an AT&T store to buy something other than an iPhone. Collins Osei, who had bought an iPhone 3G last year, came to the AT&T store on iPhone launch day not to buy the iPhone 3GS, but instead he wanted to downgrade to a less expensive Nokia phone.
Apple's recently released iPhone 3GS pulled out a victory in Consumer Reports' latest smartphone showdown.
(Credit: Apple)In handing the iPhone the top spot in this year's smartphone list, Consumer Reports on Wednesday praised the iPhone 3GS for its "superior display, reinforced by top-notch multimedia, navigation, Web browsing, and battery life." However, the iPhone didn't win in all of the categories.
Consumer Reports gave high marks to the Palm Pre and BlackBerry for their messaging functionality. The organization also praised the Pre as a "superior multitasker" for its "deck-of-cards handling of multiple applications."
In light of the changing features and needs of the smartphone category, Consumer Reports changed some of the criteria for this year's showdown. The changes helped some older phones--like the iPhone 3G--move up in the rankings, while other phones--like the Samsung Blackjack II and BlackBerry Pearl Flip--dropped due to the changes.
Changes include putting more emphasis on things like the display, navigation, multimedia, and messaging, while putting less of an emphasis on features such as talk time and voice quality.
It's unclear how the iPhone 3GS would have rated, had MMS messaging been available from AT&T at the time of the tests. AT&T said functionality would be available sometime this summer.
The full report is available to Consumer Reports subscribers.
