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August 22, 2008 10:00 AM PDT

Week in review: Apple's mea culpa?

by Steven Musil
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Apple has a message for its customers: let us make it up to you.

In an apparent attempt to make up for the problems that plagued MobileMe's launch in July, Apple has announced that it will extend user accounts another 60 days for free--that's on top of the 30-day free extension Apple gave users in July.

In an e-mail sent to MobileMe subscribers announcing the extension, Apple acknowledged that the Web services suite needs more work:

We have already made many improvements to MobileMe, but we still have many more to make. To recognize our users' patience, we are giving every MobileMe subscriber as of today a free 60-day extension. This is in addition to the one-month extension most subscribers have already received.


Video: CBS News checks in on Apple's issues of late, with
input from CNET's Natali Del Conte.

MobileMe allows subscribers to synchronize e-mail, calendars, contacts, photos, Safari bookmarks, Dashboard widgets, and more, among Macs, the iPhone, and the iPod Touch. But from its launch in July, subscribers had trouble accessing the site, and some even lost e-mail. Subscribers also reported problems accessing calendars and contact information, which was caused by a misjudgment in demand, according to an Apple blog post.

If you have a first-generation iPod Nano and you've noticed it has a tendency to smoke too much, Apple is willing to replace the unit. The company issued the following statement after reports out of Japan that some first-generation iPod Nanos, first released in 2005, have had battery problems that cause them to give off smoke or spark in rare cases:

Apple has determined that in very rare cases batteries in first generation iPod nanos sold between September 2005 and December 2006 can overheat causing failure and deformation of the iPod nano. Apple has received very few reports of such incidents (less than 0.001 percent of first generation iPod nano units), which have been traced back to a single battery supplier. There have been no reports of serious injuries or property damage, and no reports of incidents for any other iPod nano model.

In another coup for Apple customers, the company finally acknowledged the iPhone 3G's reception issues, confirming that the iPhone OS 2.0.2 software update was designed to fix those problems. A company representative told the Associated Press that the latest update "improved communication with 3G networks," after weeks of silence regarding the reception issues reported by iPhone 3G owners around the world. Apple was reportedly working on such a fix last week, but Monday's update was labeled with the briefest of descriptions--"bug fixes"--making it difficult to know exactly what was addressed with the update.

But that admission is a day late and a few dollars short for an Alabama woman who filed a lawsuit against Apple, claiming the iPhone 3G's network is slower than advertised. In a 10-page complaint, Birmingham resident Jessica Alena Smith charged Apple with breach of express and implied warranty and with unjust enrichment. Smith, who refers to the phone she purchased throughout the complaint as "Defective iPhone 3G," is seeking class action status.

The lawsuit claims that Apple's iPhone 3G advertising campaign is misleading. The charges in the lawsuit mirror widespread complaints about the iPhone 3G's reception that have crisscrossed the Internet since Apple and AT&T released the successor to the original iPhone on July 11.

Meanwhile, Apple blew away its PC industry peers in this year's American Customer Satisfaction Index. The University of Michigan released its annual ACSI scores for the PC industry, and Apple took top honors for the fifth straight year. Apple was the only company in the PC industry other than Dell to post an increase in customer satisfaction in 2008 compared with last year.

Inside Intel
Intel plans to bring its first dual-core Atom to market next month, it was revealed during the Intel Developer Forum. The power-efficient processor will be targeted at Atom-based desktops called nettops. Currently, Intel offers the Atom N230 processor for nettops. This chip has a slightly higher power envelope than the Atom processors built exclusively for mobile devices.

That news was revealed by an Intel employee as senior vice president Pat Gelsinger was delivering his IDF keynote, which included more specifics about Nehalem, the family of chips the company plans to begin rolling out in the fourth quarter. Gelsinger, the general manager of Intel's Digital Enterprise Group, showed the first wafer holding individual eight-core processors, detailed the power-saving features of the Nehalem processors, and confirmed future mobile Nehalem processors.

Ultramobiles at IDF

At the Intel Developer Forum, more than a dozen ultramobile computers, powered by Intel's new Atom CPU, were on display. Click on the image to see more of the gadgets.

(Credit: Rafe Needleman/CNET News)

Intel also will finally enter the high-capacity solid-state drive business with the goal of replacing hard-disk drives in both consumer and corporate markets. This comes 20 years after Intel introduced its first flash memory--a 256KB flash chip in 1988. The world's largest chipmaker is announcing the line of solid-state drives at the Intel Developer Forum here.

Initially, Intel will have 80GB and 160GB solid-state drives based on multilevel cell (MLC) technology for the consumer and notebook markets, and 32GB and 64GB drives based on single-level cell (SLC) for the enterprise market. In 2009, Intel expects to have MLC drives with capacities up to 320GB.

Meanwhile, Intel is joining Yahoo in an effort to provide the software underpinnings of network-enabled TV, a move that could transform not only what it means to watch TV but also what it means to advertise on it. Yahoo hopes to spice up TV by bringing a version of its Yahoo Widget Engine, a software foundation that can run small applications called widgets, to network-enabled TVs.

This new version, called the Widget Channel, will resemble the version that's available for PCs, but will come with a different user interface to let programmers build widgets that can be controlled from a distance with a remote control, said Patrick Barry, Yahoo's vice president of connected TV at Yahoo.

Yahoo's hope is the move will bring its clout on the Internet to a new domain.

On the Web
A federal judge gave more weight to the concept of "fair use" when he threw a lifeline to a Pennsylvania mother's lawsuit against Universal Music. The judge refused to dismiss Stephanie Lenz's suit claiming that Universal abused the Digital Millennium Copyright Act when it issued a takedown notice to YouTube over a 30-second video of Lenz's baby dancing to a Prince song. In the first ruling of its kind, Judge Jeremy Fogel held that copyright owners must consider fair use before sending DMCA takedown notices.

Lenz first filed suit in October 2007, after Universal requested that her video be taken down, and YouTube kept it off its site for more than a month. Lenz argues that the Prince song is barely audible in the short clip and clearly represents fair use, which allows for limited use of copyrighted materials without permission. In order to protect First Amendment rights, the DMCA allows for targets of illegitimate takedown notices to seek damages against the copyright holder.

Comcast reportedly plans to reduce Internet service to customers it deems to be using too much bandwidth, a move that comes on the heels of federal regulators ruling that the Internet service provider violated the law by throttling BitTorrent transfers. To keep service flowing to other customers, Comcast plans to impede Internet speeds to its heaviest users for up to 20 minutes, Mitch Bowling, Comcast's senior vice president and general manager of online services.

Instead of focusing on specific applications that may be hogging traffic, Comcast plans to determine "in nearly real time" whether a heavy user is causing congestion, Bowling said. The move follows the Federal Communications Commission's ruling on August 1 that Comcast's throttling of BitTorrent traffic last year was unlawful--the first time any U.S. broadband provider has ever been found to violate Net neutrality rules.

eBay will reduce the fees it charges to sellers to list fixed-price items. The move, which will take effect September 16, is intended to help eBay compete better with online retail rivals such as Amazon.com, as well as reduce its dependency on auctions.

Under the new pricing plan, sellers who offer fixed-price items in eBay's "Buy It Now" format will pay only 35 cents to list an item for 30 days, a 70 percent reduction in upfront fees. The online auctioneer is also expected to announce that most customers will no longer be allowed to pay by check or cash--only a credit card or eBay's PayPal payment service will be accepted to complete transactions.

Also of note
Recording industry and motion picture lobbyists are renewing their push to convince broadband providers to monitor customers and detect copyright infringements, claiming the concept is working abroad and should be adopted in the United States...Word is that Jerry Seinfeld will appear as a celebrity pitchman as part of a new $300 million ad campaign being developed for Microsoft...Google released the first beta version of its software developer kit for Android phones, a significant step in the company's hope for "open" phone technology.

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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by mrcjacobs August 22, 2008 10:43 AM PDT
Did you happen to notice that during most of your video you were showing the original iPhone and not the 3G? Just figured I'd point that out.

And apparently Ms. Natali Del Conte isn't aware that there are at least 5 phones sold by AT&T that run on the same 3G network as the iPhone and those phones have no problems with using the network. I'm surrently using a Nokia N95 that works flawlessly with AT&T service. Blame for this situation needs to placed sqaurely at the feet of Apple.
Reply to this comment
by samkass August 22, 2008 11:05 AM PDT
Well, mrcjacobs, I'm currently using an iPhone 3G that also has no problems with the network. Anecdotal evidence isn't reliable. Statistically it seems that iPhone 3G's have little if any more problems than any other 3G phones on AT&T... Apple is just held to a ridiculously high standard.
Reply to this comment
by rapier1 August 22, 2008 1:22 PM PDT
Well Sam, when a company purposefully creates that ridiculously high standard as part of their marketing then it only seems fair to actually hold them to it. Don't you agree?
by kaibelf August 22, 2008 11:50 AM PDT
Since it was happening enough to warrant a feature on the Early show, I think that there's more that anecdotal evidence. This has been a top headline in the tech world every day since the launch. Also, as I have said before, a premium-priced item should have premium-grade service.

This would all be a lot better if AT&T was at least crediting people for the downtime or letting them cut their data plans until it's fixed, but instead they are refusing to allow it.
Reply to this comment
by sciontcya August 22, 2008 12:04 PM PDT
My 3G (as well as my coworkers) are working great.
My first phone in 10 years - I've been on Blackberries for the last 8.
It's not perfect - but it's really amazing.
And kudos to Apple for give us MobileMe users some sense that they care - I've got another 90 days added on - I don't see Microsoft giving out anything for p*ssed-off Vista victims.
No company is perfect - but Apple still rocks when it comes to great products and customer service.
Reply to this comment
by gp2792 August 22, 2008 12:22 PM PDT
Free Vista SP1 support for a year...http://support.microsoft.com/oas/default.aspx?LN=en-us&prid=11274&gprid=500921&x=11&y=5

Downgrade rights to XP

1 Billion accounting charge to extend the warranties to 3 years on every xbox 360 for red ring issues...unheard of on consoles

yeah, msft hasn't done anything for its customers.
by sciontcya August 22, 2008 2:05 PM PDT
LOL - downgrade rights. That's classic.
The Xbox extension was good and needed.
by samkass August 22, 2008 12:39 PM PDT
"Since it was happening enough to warrant a feature on the Early show, I think that there's more that anecdotal evidence."

Actually, that's virtually the definition of anecdotal evidence. And it's unreliable. The iPhone is the highest-profile smartphone ever. And yes, the 2.0.2 patch made things a little smoother than it was at rollout, but it's not nearly as bad as those news sources looking for hits and viewers would have you believe.

For that matter, neither is the reports on the draconian App Store review process. My app was reviewed in 1 business day (3 calendar days) and each point release took 5 business days (7 calendar days) to post.

It's fun to read stories about how "evil" Apple is, but they're just another company trying to make people happy profitably.
Reply to this comment
by Kwasiowusu August 22, 2008 4:04 PM PDT
So Apple sells yet another deffectve product, after years of selling iPods with a high percentage of failures, and the poor, deluded Kool Aid drinking saps that bought it, are screwed again. Nothing new here. Move along.
Reply to this comment
by sciontcya August 22, 2008 4:50 PM PDT
Oh dear...another sad, poor techie that still can't get over not being able to afford anything.
GO back to backgrading your ACER to XP and leave the rest alone.
by Kwasiowusu August 22, 2008 5:50 PM PDT
@ sciontcya, so yet another mentally challenged, retarded Steve Jobs culitist emegerges from his hole in the ground to spew out the usual Apple fanatic garbage.
Do us all a favour? Go back to the hole you crawled out from will ya?
by sciontcya August 22, 2008 6:15 PM PDT
My phone works great. Why?
Have you seen reports on the new BB Bold?
Doesn't even work as well as the iPhone on 3G apparently.
Amongst other issues, I love guys like you that continue to follow the mediocre MS model into the ground.
You must have a wall of MS cert's.
I know all the guys like you - sad, and you dress really poorly.
by pmchefalo August 23, 2008 2:52 AM PDT
Hey, it's a great thing Apple is doing:

when you have a service that costs next to nothing to provide (after you made the original capital investment) and it offers no value (it's broken) so instead of giving people their money BACK, you tell them that they can have MORE broken useless services.

Who says Apple isn't WONDERFUL!
Reply to this comment
by Rob07601 August 23, 2008 9:41 AM PDT
You should pay more attention, Apple is arrogant, Microsoft is evil. If Microsoft does something that doesn't work properly and fixes it later, it just proves that Bill Gate$ and Micro$oft , Micro$uck$, Micro$hill, are EVIL, making people pay for faulty softwate. If Apple does the same thing it's ok because it's still cutting edge and better than anything Microwhatever has to offer and when they fix it it jjust shows how great they are and how much they care. Meanwhile we hear complaints that AT&T should reduce their service rates because Apple hardware doesn't work properly? Anybody remember when early adopters of OS-X had to set up dual booting to use their OS-9 software. Everybody, let's all sing Kum Ba Yah!
Reply to this comment
by Fil0403 September 10, 2008 5:36 PM PDT
An online service that doesn't work and loses people's e-mails, an MP3 player that gives off smoke and sparks, a 3G-advertised mobile phone that doesn't have 3G coverage in major US and European cities. Yep, there's no doubt that Apple products "just work". As if it wasn't enough, Apple releases an update for the iPhone 3G fixing problems they denied to ever exist (Apple AirPort anyone?). Notwithstanding, judging from the video (and notwithstanding the fact that the iPhone 3G is the only 3G mobile phone having these problems), we can basically conclude that whatever problems Apple products have, they are pretty common in any electronics so it's not Apple's fault (yes, because I already lost count to the number of devices I had that started giving off smoke and sparks in my hands). The lawsuit is only the logical and natural consequence of false, misleading, and deceiving marketing and advertising that sooner or later would result in this (i.e. unbiased costumers finding out that reality is different from what Apple commercials try to make you think). This only proves how misleading the American Customer Satisfaction Index can be, with biased Apple sheeps probably considering themselves satisfied with Apple while an iPod Nano burns their hands. Apple is blowing itself up, and, notwithstanding its dubious reliability, I'm rather curious to see Apple's score in next year's American Customer Satisfaction Index.

I have a message for Apple: get real (i.e. change your motto to: "It just works... sometimes" XD).
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