Industry insiders are accusing Apple of manipulating the price of NAND flash memory chips used in its popular iPhone and iPod products, according to a report in The Korea Times on Monday.
Citing unnamed sources, the article says Apple asks manufacturers to produce more chips than it eventually buys from Samsung Electronics and Hynix Semiconductor. The sources said Apple waits for the price of the chips to fall before making its purchase.
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Apple)
The practice of not buying all of the product originally ordered, semiconductor analyst Jim Handy told CNET, is "not uncommon in the industry."
Handy, of market research firm Objective Analysis, explained that these contracts are normally negotiated with a cancellation clause, with provisions to protect the supplier and buyer. He said companies usually work closely with the buyers, so changes to orders are normally small and don't cause many problems.
Supply and demand in the NAND market are currently about even, Handy said, adding that with the popularity of the iPhone and iPod, he's heard estimates that 20 percent to 30 percent of the worldwide NAND flash memory goes to Apple. In its fiscal fourth-quarter results, the company reported selling 10.2 million iPods and 7.4 million iPhones for the three months ended September 26.
Chipmakers Samsung Electronics and Hynix Semiconductor declined to comment for The Korea Times, as did Apple's Korean office. Contacted by CNET, representatives of Apple in the United States also declined to comment for the story.
The iPhone sales numbers continue to increase, as does the number of applications available for the device. Apps are one reason the iPhone has become as popular as it is among so many different categories of users in such a short time on the market.
Apple currently has more than 100,000 apps available for download, with users having downloaded more than 2 billion apps as of November 4.
Apple's original Newton
(Credit: Apple)Back when CNET UK was a baby, it pitted an Apple Newton MessagePad against a Samsung Q1 UMPC in a brutal boxing match to the death. The Newton, despite being 10 years the Q1's senior, emerged victorious and the crowd--that's you lot--went wild.
Today, we've taken the reigning champion, the very same Newton, out of retirement to put it up against a brand-new contender. This time, the opposition is no Windows-tainted experiment doomed to failure. Oh no--this time it's the Newton's very own grandchild, the iPhone 3GS.
It would be a little unfair to compare the two devices on a like-for-like basis. One's a phone, for goodness sake, and one's a 400-year-old tablet thingy. CNET UK's Flora Graham and Rory Reid take a relative look at each, focusing on how innovative they were for their respective times...
Read more of "Apple Newton vs Apple iPhone at Crave UK.
The App Store has been a huge success for Apple and for some developers, but there have been a few hiccups along the way. Apps have made it past Apple's rigorous reviews machine only to be pulled down permanently, or have their developers required to remove key features.
Those who still have some of these apps can consider them collector's items, since they continue to work, despite not being able to be re-downloaded from the App Store. We've rounded up 10 of the most notable pulls (along with one that had to be tweaked for less functionality). Click the slideshow link below to get started.
Any we missed? Leave them in the comments.
A month after Apple started selling its iPhone in China, the device expanded its Asian reach Saturday with a much-heralded launch in South Korea.
In keeping with the tradition of waiting in line for hours in advance of an iPhone launch, hundreds queued up overnight outside the Olympic stadium in Seoul to snag the smartphone as soon as it officially landed amid blaring music and strobe lights. The hoopla appeared to far trump the phone's more subdued arrival in China, where it launched in the October cold and rain to smaller-than-expected crowds.
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Apple)
KT Corp, South Korea's second largest mobile carrier (after SK Telecom) and the local distributor of the iPhone, says about 65,000 people have preordered the device, which hit the South Korean market two months after the government approved its sale.
Mobile penetration in South Korea is high--an estimated 93 percent of the country's population subscribes to a mobile service--but smartphones have yet to take off there due to cost, lack of apps, and high data rates by mobile carriers.
"We're hoping that this iPhone will be a trigger point for the smartphone market in Korea," said Yang Hyun-mi, chief strategy officer at KT Corp, according to the Canadian Press. Smartphones make up just 1 percent of all cell phones in South Korea, she said.
KT is pricing the 32GB iPhone 3GS at 396,000 won ($338) for customers who subscribe with a monthly service fee of 45,000 won (about $38). Customers who subscribe with a monthly fee of 65,000 won ($55) can get the phone for 264,000 won ($225). And premium users who sign up for monthly plans based on a 132,000 won ($113) basic rate can get the phone for free.
An 8GB iPhone, meanwhile, can be had for 132,000 won for subscribers signed on the 45,000 won monthly plans.
KT projects that iPhone sales will fall anywhere 200,000 to 500,000 units, a showing that's widely expected to shake up the country's mobile market. For years, the Korea Communications Commission used technical rules to stifle competition, allowing homegrown giants like Samsung and LG Electronics to take over the market, according to the Wall Street Journal.
Indeed, in good news for cost-conscious consumers, Samsung has already slashed the price of its 8GB Omnia 2 smartphone by 44,000 won ($37.50) to 924,000 won ($788).
Watch a South Korean iPhone television spot below.
Update 2: Apple's U.S. Black Friday sale is up, and while not spectacular, there are some rare discounts to be found. To go back to the same examples we used for the U.K. and Australian Apple stores, the base model 13-inch MacBook Pro is $1,098, down from $1,199.
In fact, it looks like all MacBook Pro models are exactly $101 off, while the $999 white MacBook is not discounted at all. The 32GB iPod Touch is $268, down from $299.
This sale is good online and in Apple's retail stores and runs until 3 a.m. EST on November 28.
Update: Even though it's not quite Black Friday in the U.S. yet, it's past midnight in some other parts of the globe. Notably, Australia and the U.K. have both seen their respective Apple Web sites updated to reveal Apple's one-day sale. While we can't say yet that the deals in the U.S. will be exactly the same, there's no reason think they won't be.
On apple.com/uk, we saw a 13-inch MacBook Pro, originally £1,149, marked down to £1,078. On apple.com/au, the same unit was A$1,868, marked down from A$1,999.
Similarly, a 32GB iPod Touch is £208, marked down from £229 on the U.K. site, while while in Australia, it's A$358, down from A$399.
We've also examined some Black Friday deals from other retailers.
Our original post continues below:
According to purportedly leaked documents on the tech rumor site Boy Genius Report, Apple is gearing up to offer a series of post-Thanksgiving bargains on products from iPods to MacBooks.
The deal, allegedly good only on November 27, lists "up to" discounts of 30 percent on iPods (excluding the Shuffle and iPhone), 25 percent on Mac laptops and desktops, and 15 percent on accessories, software, and other hardware.
The Boy Genius Report Web site says: "One of our connects just hit us up with some intriguing Apple information. According to them, what you see detailed above is a shot of Apple's yearly Black Friday deals. It's reported to be something Apple will email out shortly."
Of course, with the vague use of "up to" and no specific products listed, we can't be sure if these will be good deals or not. But if you're interested in being the first in line to check them out, the leaked doc also says that select Apple stores will be opening at 6 a.m. on November 27.
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Boy Genius Report)
eBay is playing virtual Santa this holiday season with a free "Deals" app for the iPhone that leads consumers to the better buys on the auction site.
Launched Tuesday, eBay Deals is designed to deliver a stream of the best deals on the site from across hundreds of millions of listings. Like eBay Mobile, the company's regular iPhone app, Deals lets you search, shop, and pay for your items from your iPhone or iPod Touch.
All featured deals spotlight items with no bids, no reserve price, free or fixed-rate shipping, and less than four hours remaining to bid.
You can browse deals across eight categories, including apparel, computers, electronics, and collectibles. If you spot a deal you like, just tap on it, and its listing pops up where you can watch it or bid on it. Not crazy about the current deals? Just shake your iPhone or iPod Touch, and a new set of deals appears.
If you spot a deal that may be better for someone else, you can e-mail it or share it via your Facebook or Twitter account.
Besides browsing eBay's virtual aisles, you can search for your own deals by entering a product name, category, and price range. You can save your customized search results to return to them later.
Starting Friday, eBay will also be unveiling a "12 Days of Deals" feature promoting a new promotion each day until December 8. Friday's deal will offer Samsung's N120 Netbook.
"As the world's leading online marketplace we have insights into how people really want to shop...and they clearly want to shop on their phones," eBay Marketplaces President Lorrie Norrington said in a statement.
Though designed for the mobile crowd, eBay's daily deals can also be found online at the auction site's Deals page.
eBay has been busy lately sprucing up its mobile auction site for the holidays. The vendor recently added social networking to its eBay Mobile app, letting you share a listing through e-mail, Facebook, or Twitter.
Since its launch in 2008, eBay's mobile app has been downloaded more than 5 million times, said the company. With a purchase made every two seconds, the company said, more than $500 million worth of items are likely to be traded through eBay mobile this year.
It seems that Apple doesn't respect Verizon's Droid phone quite as much as it does Microsoft's PCs. But two new ad spots, launching Monday evening, come as close as Apple has done thus far to directly attack the allegedly do-it-all robotphone.
The Droid, you see, went after Apple in its teaser campaign with some telling remarks and the hearty claim that Droid does what the iPhone doesn't. Then Verizon decided it would be fun to knock both the iPhone and AT&T's spotty 3G coverage with its "Misfit Toys" concept.
AT&T has already replied by hustling a hastily-dressed Luke Wilson into directing a few resentful pins at Verizon's effigy. However these new ads, while entirely in keeping with the iPhone tone and style, end with a line that expressly assaults the doings of Droid--or rather, its alleged non-doings.
Both ads focus on the iPhone's ability to allow you to use voice and data capabilities simultaneously over the AT&T network. By asking gently at the end of each spot "Can your phone and your network do that?" Apple is bursting what it sees as the inflated stealth bombing that accompanied the launch of the Droid.
Apple iPhone Ad - Did You See My Email? from Arik Hesseldahl on Vimeo.
Apple iPhone Ad - What Time's The Movie? from Arik Hesseldahl on Vimeo.
These ads don't mention the Droid or Verizon by name. But the fact that Apple has decided to address its rivals, however obliquely, suggests that one can look forward to more accusations, more bickering, and more attempted one-upmanship.
'Tis the season of goodwill, after all.
Apple's App Store has been a runaway success, but it's also been mired in controversy due to the application approval process. The company, however, isn't making apologies for its stringent gatekeeping and insists it's acting in the best interest of its customers.
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Apple)
"We've built a store for the most part that people can trust," Phil Schiller, Apple senior vice president of worldwide product marketing, told BusinessWeek in an interview posted Monday. "You and your family and friends can download applications from the store, and for the most part they do what you'd expect, and they get onto your phone, and you get billed appropriately, and it all just works."
Schiller offered BusinessWeek a breakdown of app rejections. Of the applications sent back to developers, about 90 percent are due to technical issues and simply need code tweaks to make the apps work properly.
About 10 percent are rejected because they try to steal personal data or try to help someone break the law or because they contain content that Apple considers inappropriate, BusinessWeek reported.
About 1 percent are turned away for reasons that fall into gray areas, Schiller told BusinessWeek.
One of Apple's latest run-ins with a developer was over the use of Apple product images in Rogue Amoeba's audio-streaming app called Airfoil Speakers Touch. After three-and-a-half months of back and forth over an update for the already-live app, Apple is apparently going to let the company resubmit the app update with the product images intact as originally submitted. However, the ordeal has apparently soured Rogue Amoeba on future development for the App Store.
"At this time, we have no plans to return to the platform," Rogue Amoeba CEO Paul Kafasis told CNET on Monday. "Apple has corrected one small problem with their review process. But the platform as a whole still has many issues that need to be addressed before we consider it a viable place for our business to commit resources."
The App Store currently has more than 100,000 third-party applications available for download. Apple has reported more than 2 billion downloads since the online store opened in July 2008.
Another iPhone worm has been spotted in the wild.
Unlike the previous exploitation, which merely changed a jailbroken iPhone's wallpaper to a picture of Rick Astley of "Rickrolling" fame, this new threat allows hackers to steal sensitive information.
According to security firm Sophos, which wrote about the exploitation after a Dutch ISP spotted it late last week, the worm attacks jailbroken iPhone and iPod Touch devices only.
The worm "uses command-and-control, like a traditional PC botnet," Sophos wrote in a blog post on Saturday to warn users about the exploit. "It configures two startup scripts, one to execute the worm on boot-up, and the other to create a connection to a Lithuanian server to upload stolen data and cede control to the bot master."
Jailbreaking, which has been around for about two years, is a hack that enables iPhone and iPod Touch users to download applications unavailable through Apple's App Store.
Sophos wrote that the worm attacks users on several ISPs, including UPC in the Netherlands, Optus in Australia, and T-Mobile in several countries worldwide. Worse, the worm spreads faster on a Wi-Fi connection than a 3G connection. Users with affected devices might notice extremely short battery life while on Wi-Fi. According to Sophos, that's mainly due to the worm engaging in "so much network activity."
When a device is infected, it's assigned a unique number so that the attackers can easily pinpoint a single device. It also looks for authentication systems that use SMS, better known as mTANs. mTANs are frequently used by banks that send an SMS message with a password to mobile phones, allowing people to log in to their online accounts, Sophos wrote.
In essence, this threat is serious.
Sophos recommends that people with infected iPhones and iPod Touch devices restore them back to Apple's most recent firmware update. For now, there is no other way to fix the problem.
Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
Apple's iPhone platform has attracted a wide range of developers, including many gaming companies over the last year. While competition in attracting developers is increasing among mobile operating system companies, it seems the performance of the App Store will keep Apple at the top of list.
French mobile gaming company Gameloft said at an investor conference on Friday that it is cutting back its investment in Android in favor of the iPhone, according to a Reuters report. Gameloft's finance director Alexandre de Rochefort said "many others" were doing the same thing, although he didn't mention the other companies by name.
Rochefort said the main reason for choosing the iPhone over Android was "due to weaknesses of Android's application store."
"It is not as neatly done as on the iPhone. Google has not been very good to entice customers to actually buy products. On Android nobody is making significant revenue," said Rochefort.
Gameloft has more than 75 games available in the App Store and Rochefort said they sell 400 times more games for the iPhone than they do for Android.
Games are a big focus for Apple, especially with the release of its newest iPod Touch in September. It was there that Apple began comparing itself to the gaming elite like Nintendo and Sony.
Phil Schiller, Apple's senior vice president of Worldwide Product Marketing, said during the event that the buying experience was "too expensive" and "not a lot of fun." Schiller also pointed out that, at the time, there were more than 21,000 gaming titles on the iPhone, compared to 3,600 on Nintendo, and 600 on Sony.
Earlier this month, Apple said it had more than 100,000 apps available with over two billion downloads.
