Apple

Two years ago, Palm's then CEO, Ed Colligan, rejected a proposal from Apple chief Steve Jobs to promise not to hire each other's employees, according to Bloomberg News.

According to Thursday's Bloomberg story, which cited unspecified "communications" between the two executives, Colligan in August 2007 said that Jobs' proposal was ill-considered. Jobs was worried about losing key Apple employees to Palm and said "we must do whatever we can to stop this," reported Bloomberg.

"Your proposal that we agree that neither company will hire the other's employees, regardless of the individual's desires, is not only wrong, it is likely illegal," Colligan told Jobs, according to the communications reviewed by Bloomberg.

A number of top figures at Palm once worked at Apple. Two months before the August 2007 communications cited by Bloomberg, Palm had announced that former Apple CFO Fred Anderson would be joining its board of directors and that Jon Rubenstein, who retired as head of Apple's iPod division in 2005, would join as executive chairman of the board.

In June of this year, Palm named Rubenstein as its CEO, replacing Colligan.

In August, former Apple staffer Jeff Zwerner became Palm's brand design chief. Other Apple execs who have jumped ship to Palm in recent months include Senior VP of Product Development Mike Bell and PR head Lynn Fox.

There's no love lost of late between the companies, with the Palm Pre a new up-and-comer for smartphone market share against the Apple iPhone. The two have most recently been squabbling over the Pre's compatibility with iTunes.

The Bloomberg story comes as the Justice Department is reportedly checking into possible hiring collusion among leading technology companies.

Tensions often run high between tech companies over executives moving between potential competitors. Apple last year got into a high-profile scrape with IBM over its hiring of Mark Papermaster from Big Blue.

Goodbye Pre.

(Credit: Screenshot by Bonnie Cha/CNET)

This post was updated at 2:56 p.m. PDT with a comment from Palm.

Oh dear. We can't say this was a complete surprise, but it looks like Apple made good on its earlier warning and put an end to the Palm Pre-iTunes synchronization with the release of iTunes 8.2.1.

In the release notes, Apple states that "iTunes 8.2.1 provides a number of important bug fixes and addresses an issue with verification of Apple devices." Not wanting to believe the news, we bit the bullet and downloaded the latest version of Apple's music software to our PC and sure enough, the romance is dead.

Just as before, we connected the smartphone to our laptop and selected the Media Sync option on our Pre, but this time, it didn't automatically launch iTunes. Instead, it was only recognized as a mass storage device, and manually launching iTunes did not surface the Pre either (*tears*).

When asked for comment, Palm replied with the same response it had when Apple first issued its warning:

Palm's media sync works with iTunes 8.2. If Apple chooses to disable media sync in iTunes, it will be a direct blow to their users who will be deprived of a seamless synchronization experience. However, people will have options. They can stay with the iTunes version that works to sync their music on their Pre, they can transfer the music via USB, and there are other third-party applications we can consider.

Obviously, this isn't the best news for Pre users, but there are alternative ways to keep the iTunes-Pre synchronization alive. For one, you could just not update to iTunes 8.2.1, or as PreCentral.net points out, there are other third-party solutions, such as doubleTwist and The Missing Sync for Pre, that will allow to sync the smartphone with iTunes.

Anyone else have recommendations or thoughts on this little battle between Palm and Apple? Please share below.

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.

Songs from iTunes synced with a Palm Pre.

(Credit: Ina Fried/CNET)

An article that appeared on Apple's support site Tuesday doesn't appear to be directed at any other company in particular--unless you read between the lines.

Titled "iTunes: About unsupported third-party digital media players," the article addresses the claims of "some third parties" that their digital media players are able to sync with iTunes. By "some third parties" they clearly mean "Palm," which has manipulated the new Pre smartphone to sync with Apple's music software. Palm execs showed off the iTunes sync feature at last month's D: All Things Digital conference.

The article reads: "Apple is aware that some third parties claim that their digital media players are able to sync with Apple software. However, Apple does not provide support for, or test for compatibility with, non-Apple digital media players and, because software changes over time, newer versions of Apple's iTunes software may no longer provide syncing functionality with non-Apple digital media players."

That can be taken as a none-too-subtle threat that Apple can break the Pre's iTunes sync capability with a simple iTunes software update any time it wants to.

Apparently Palm's chief investor Roger McNamee didn't see this coming. When he and Palm CEO Jon Rubinstein introduced the feature, he acknowledged that Apple could take legal or technical steps to block the feature, but said, "I find it hard to believe they are going to get bent out of shape."

So, where does the Apple iPhone 3G S get its claimed "2x faster" leap in speed? Rumors are rampant that Apple is using a new chip to crank up the performance.

Why rumors when Apple has already announced the iPhone 3G S? Apple doesn't disclose chip-level hardware specifications. Moreover, Apple clearly wants to convince any prospective buyer than it's not the iPhone's individual parts that matter but the Apple-branded whole.

Apple claims a speed jump up to two times faster than the previous iPhone: a lot of that may be due to the new processor.

(Credit: Apple)

The fact is no one will know for sure until teardown specialists like iFixit and iSuppli actually disassemble the iPhone 3G S. "Until we actually decap those chips, we won't know exactly which chip it is," according to Francis Sideco, senior analyst for wireless communications at iSuppli.

Kyle Wiens, one of the founders of iFixit, said Wednesday he is flying to Europe to get his hands on the iPhone 3G S and take it apart.

So, what does Apple claim exactly? Here's the Apple ad copy on its Web site. "The Fastest iPhone Ever. The first thing you'll notice about iPhone 3G S is how quickly you can launch applications. Web pages render in a fraction of the time, and you can view e-mail attachments faster. Improved performance and updated 3D graphics deliver an incredible gaming experience, too. In fact, everything you do on iPhone 3G S is up to two times faster and more responsive than iPhone 3G."

Technology Web site Anandtech claimed Wednesday that it knows what the chip is. "Although unannounced, the iPhone 3GS uses (again) a Samsung (system-on-a-chip) but this time...it's got a Cortex A8 and PowerVR SGX; just like the (Palm) Pre," according to an analysis published Wednesday at Anandtech by Anand Shimpi, editor in chief .

Most smartphones today--including the previous versions of the iPhone--are based on some version of an application processor design from U.K.-based ARM. The Cortex A8 is a newer, faster version of the ARM design.

A T-Mobile Netherlands' Web page has published features that specify "256 RAM" and "600 MHz-processor." The link is cited in a report published Wednesday by AppleInsider.

"My gut tells me the Cortex A8 is very possible," said IFixit's Wiens, responding to an e-mail query. Though he emphasized that he is simply guessing. iSuppli's Sideco said that the 600MHz speed cited on the T-Mobile Web site doesn't necessarily mean that Apple is using the latest and greatest ARM design. "I wouldn't necessarily make that connection," he said, adding that there are 600MHz ARM processors available based on older designs.

That said, if the Anandtech report is true, this means the iPhone 3G S's application processor--essentially the brain of a smartphone--is similar to the processor used in the Palm Pre. The Texas Instruments' chip in the Pre is also a Cortex-A8 design core from ARM.

Here's what ARM says. The Cortex-A8 processor "is the highest performance, most power-efficient processor available from ARM. With the ability to scale in speed from 600MHz to greater than 1GHz." And using argot probably lost on many readers, it is an in-order, dual-issue, superscalar microprocessor core. Over-simplified translation: it can do more than one thing at a time.

These specifications compare favorably to the processor used in the previous iPhone: an older-generation ARM chip running at 412MHz.

The Palm Pre chip also integrates a Powervr SGX 2D/3D graphics accelerator based on a design from Imagination Technologies. The Anandtech report claims that the iPhone 3G S also uses this graphics silicon.

One of the big mysteries is how much tweaking Apple does to the basic ARM chip design. In one respect, this question is answered very visibly since Apple stamps its brand on the iPhone processor. And for future iPhones, Apple is expected to tap proprietary technology from the recently acquired P.A. Semi. "With their acquisition of PA Semi, the apps (application) processor is the most likely slot to get internalized," according to Sideco, referring to the likelihood that Apple will focus in-house development on the main processor inside the iPhone.

Marion Morales, vice president of IDC's semiconductors research program, said last month in a phone interview that though Apple uses Samsung chips, "when you look at the processor itself, they're designing the processor and using Samsung as a foundry (factory)," he said, underscoring the fact that Apple emphasizes internally developed technology and de-emphasizes external suppliers, even large companies like Intel and Samsung.

As Palm readies the Palm Pre for release next month, another interesting tidbit of information has been discovered about the device. It is recognized by Apple's iTunes.

In fact, the Palm Pre is not only recognized by iTunes, it also syncs seamlessly with iTunes, according to a report on Forbes.com. There is one caveat: The Pre cannot handle Apple's DRM protected songs. Still it's quite a nice feature to have if you plan to purchase a Pre and have all of your music in iTunes.

One of the features that Apple has long touted about its hardware and software combination is how seamlessly the two work together. This gives users the ability to sync pictures, movies, videos and data to devices or to the "cloud" with little or no configuration from the user.

It makes sense that Palm would have the knowhow to be recognized by iTunes. After all, Palm Executive Chairman Jon Rubinstein is an ex-Apple executive himself. Rubinstein was the head of Apple's iPod division before leaving the company, giving him an intimate knowledge of the device and supporting technology.

Apple has been very quick to jump on developers who have tried to circumvent its control over the iPod and iTunes in the past, and they could very well do it again.

Considering how vehemently the company has protected it in the past, it seems hard to imagine that Apple would give an iPhone competitor like Palm access iTunes without a fight.

AT&T may slash the price of its iPhone service plan by $10 when a new version of the touchscreen smartphone is launched this summer, according to a story on TheStreet.com.

The article cited analyst Michael Cote of Cote Collaborative saying that there is a "strong possibility" that AT&T will drop the entry-level price of its service plan to $59 from $69. Apple is expected to unveil the latest iPhone on June 8 during the company's World Wide Developers Conference in San Francisco.

(Credit: Apple)

AT&T declined to comment for this story, and Michael Cote did not respond to an e-mail request for an interview.

The price cut would likely help make the iPhone, which now retails for $200 with a two-year service plan with AT&T, more appealing to more mainstream customers. I've been saying for quite some time that the biggest hurdle to widescale adoption of the iPhone or any other smartphone in the mainstream market is the high price tag of the service contracts.

Consumers have shown that they are willing to pay anywhere between $100 and $200 for a sophisticated smartphone device. But the monthly service charge, which starts at $69 for the iPhone, is much harder to swallow.

It puts the real cost of the iPhone 3G over the life of the two-year contract at a whopping $1,856, which includes the price of the 8GB phone and 24 months of the most basic iPhone voice and data plan. It doesn't include the activation fee or taxes and other fees associated with the account. For subscribers who need more voice minutes or unlimited texting, the price tag is even higher.

Still, a $240 reduction in the overall cost of the phone over the life of the contract could entice some cost-conscious consumers.

Apple made it clear on its earnings call it won't tolerate any pilfering of its iPhone intellectual property. It was less direct, however, on who that is directed at.

But Palm, with its recently introduced Palm Pre, apparently is willing to play the game of corporate posturing, as well.

A Palm representative, according to an interview with AllThingsD, noted the company is comfortable with its innovation and has no problem defending its developments.

Said the Palm rep:

If faced with legal action, we are confident that we have the tools necessary to defend ourselves.

Anyone want to keep watch on court filings at the Santa Clara County courthouse?

Does Apple think the Palm Pre, shown here, rips off the iPhone? We might find out later this year.

(Credit: Corrine Schulze/CNET)

Like most people who paid attention to Consumer Electronics Show earlier this month, Apple noticed the Palm Pre.

In response to a question from a financial analyst about Palm's new smartphone and its multitouch interface, Apple COO Tim Cook, without addressing the Pre directly, made sure that everyone on Apple's quarterly earnings call Wednesday knew how Apple feels about intellectual property.

"We will not stand for having our IP ripped off," Cook declared, perhaps firing a shot across the bow of Palm and executive chairman Jon Rubinstein, a former Apple employee. To be clear, Cook did not accuse Palm of such an act, explicitly saying "I don't want to talk about any specific company."

But the context--in which Cook was being questioned about the rising threat to the iPhone from competitors like Research In Motion, Google, and Palm--was clear. Palm showed off some some remarkably iPhone-like traits on the Pre earlier this month, such as swiping the screen to move between windows and using multitouch gestures to zoom in and out of Web pages.

Palm--full of ex-Apple engineers brought over by Rubinstein--has not announced a launch date for the Pre yet, but Apple is clearly watching developments closely. Cook promised to use "every weapon at our disposal" if the company felt the iPhone's intellectual property was at risk, and I'd bet a house in Puerto Vallarta that he's talking about Apple chief legal officer Daniel Cooperman.