Apple

Apple on Thursday released an update for the iPhone operating system, bringing the current version of the OS to 3.1.2.

According to notes accompanying the update, Apple fixed three bugs, which may not seem like a lot, but they are important. Among the changes is a fix for what Apple says is a "sporadic issue," where the iPhone would not wake up from sleep mode.

The update also resolves an issue that could interrupt the cell network until the phone is restarted. A bug that caused a crash during video streaming has been addressed in iPhone OS 3.1.2.

Apple said iPhone OS 3.1.2 is compatible with the iPhone, iPhone 3G, and iPhone 3GS. The update is available by plugging your iPhone into your computer and clicking on the update button in iTunes.

Once finished, your iPhone will restart and immediately alert you to a Carrier Settings update. This is a very small update that will be completed without needing to restart again.

iPhone and iPhone 3G users hit a roadblock last week trying to login to Exchange 2007 servers after upgrading to iPhone OS 3.1.

(Credit: Apple)

Because the problems began with the latest update, it may seem reasonable to assume that the update is to blame, but it's not. In fact, everything is working exactly how it's supposed to be, according to Apple.

"iPhone OS 3.1 is working properly with Exchange Server 2007," Apple representative Natalie Harrison told CNET News. "We added device encryption information to the data that can be managed by IT administrators using Exchange Server 2007. The policy of whether to support iPhone 3G, in addition to iPhone 3GS, which always has on-device encryption, on Exchange Server 2007 is set by the administrator and can be changed at any time."

What this means is that iPhone OS 3.1 now properly identifies itself to Exchange 2007 as having hardware encryption, and that's what is causing the problems for iPhone and iPhone 3G users.

iPhone OS 3.0 did not identify itself properly to Exchange 2007 on any iPhone. This means that if you had a 3G and Exchange 2007 was configured to require hardware encryption, you could still login, even though the device does not have hardware encryption.

With iPhone OS 3.1, all iPhones identify themselves properly to the server, essentially fixing a glitch in the previous operating system. However, now iPhone and iPhone 3G users that upgraded to iPhone OS 3.1 cannot login to Exchange 2007 servers that require hardware encryption.

If you use the new iPhone 3GS, you won't notice any change. Apple's newest phone is equipped with hardware encryption, so it will meet the requirements of the Exchange server when identifying itself.

If you already upgraded to iPhone OS 3.1 on an iPhone or iPhone 3G and connect to an Exchange 2007 server, you can ask that the IT admin turn off the hardware encryption requirement for those devices.

Company IT administrators who require hardware encryption to access Exchange 2007 will need to decide whether they want older iPhones to access their servers. If so, they will need to configure Exchange to not require encryption from the iPhone and iPhone 3G.

Of course, if you haven't upgraded your iPhone, it will continue to access Exchange 2007 as it always did.

Finally, it seems the Chinese people are about to be able to legally get their hands on the phone they have been building: the iPhone.

According to International Business Times, Unicom, China's second largest cell carrier, has paid 10 billion yuan (about $1.46 billion) to buy 5 million iPhones from Apple. The first batch of the phones will be made available to Chinese customers as early as next month. Since March, the company has been posting the phone's images and specs at its stores.

Like almost everything nowadays, the iPhone is also from China.

(Credit: Dong Ngo/CNET)

This will be the first time the phone is legally available in the country with the largest amount of cell phone users in the world. I find this sort of ironic, as, like most electronic devices, the iPhone is assembled in China.

The Chinese people are already acquainted with the iPhone. Prior to this, the phone has been available in China, as well as Vietnam and many other countries where Apple has no business partners, via smuggling.

What will be new to the Chinese people for sure, however, is the fact that the phone will be locked to Unicom. Yu Zaonan, general manager of the customer development department of China Unicom in Guangzhou, told International Business Times that China Unicom is hoping 5 million iPhones will translate into 5 million new customers for the company. Unicom currently is still far behind China Mobile, the largest cell carrier in the country, both in terms of subscribers and profit. Unicom hopes the iPhone will help it narrow this gap.

Locked phones are generally new to China and Asia, where people have had the freedom of getting any phone at any store and using it with any carrier. This deal between Apple and Unicom means they will get a taste of business the American way.

It's unclear which versions of the iPhone (3G or 3GS) are included in this deal and whether the phones will have Wi-Fi disabled. However, according to Yu Zaonan, the price for the 8GB iPhone will be 2,400 yuan ($350) and the 16GB version will cost twice as much. This means the company's hopeful new batch of 5 million subscribers will be those with substantially high incomes.

Anyone not so well-off might just have to resort to used and jailbroken iPhones smuggled in from other countries. These phones cost somewhere between 400 yuan ($59) and 1,000 yuan ($146), according to International Business Times.

Personally, I think it's likely many of those 5 million iPhones will be jailbroken by the locals. Now, if Apple's claim that jailbreaking the phone can turn it into a weapon of mass disruption was true, this could be unsettling news for communist China.

(Credit: The Boy Genius Report)

Ever since Apple launched the new iPhone 3GS, the older iPhone 3G has been going for $99 with a new two-year contract. Well, according to Boy Genius Report, there seem to be some indications that Apple may be about to bring out a new 8GB version of the iPhone 3GS that will take the place of the iPhone 3G and also cost $99.

Interestingly, BGR's source isn't AT&T but Rogers, a Canadian carrier, and a tipster sent the site some screenshots that seem to provide proof of the transition between models. None of this is confirmed, of course, but if AT&T (and other carriers like Rogers) offered an 8GB iPhone 3GS for $99, it would be another aggressive move by Apple in its quest to dominate the smartphone space. I'm not sure it spells doom for the $199 8GB Palm Pre, which is selling well, but it can't help its cause.

Comments? Is the 8GB iPhone 3GS at $99 a big deal?

(Via The Boy Genius Report)

Like it does in most countries, Apple has a preferred wireless carrier in the United Kingdom. In this case the carrier is O2, but that may not be the case for long, at least for the iPhone 3G.

(Credit: Apple)

According to a report on Mobile Today, Apple may open up iPhone 3G sales to other wireless carriers in the U.K., namely O2 competitors Orange and T-Mobile. O2's exclusive with Apple reportedly ends in September, giving Apple a couple of months to set up other deals.

T-Mobile is so sure that they will get the contract for the iPhone 3G that its call center employees have already begun telling customers that it may have the iPhone in the future, according to Mobile Today

If Apple were to open up the iPhone to other carriers it could increase sales of the older model phones, while continuing sales of the new iPhone 3GS with O2.

Many people in the U.S. are hoping Apple will do the same thing here. Rumors of talks between Apple and wireless carrier Verizon have been floating around for months, but so far nothing official has happened.

Verizon's work on its 4G network, which is based on the GSM standard, have kept the rumors alive. AT&T is said to be negotiating with Apple to keep its exclusivity deal.

(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 on Friday upped its stake in U.K. chip company, Imagination Technologies.

The company purchased 2.2 million shares at 1.43 British pounds ($2.36), for a total cost of 3.14 million pounds ($5.19 million). The purchase brings Apple's stake in the company to 9.5 percent, effectively tripling its ownership in Imagination, according to a report on MocoNews.

Apple uses Imagination's SGX GPU in the recently released iPhone 3G S, allowing it to have much better graphics using Apple's OpenGL ES 2.0, according to AppleInsider. Samsung is reportedly integrating Imagination's technology into system-on-a-chip devices.

OpenGL ES 2.0 is a cross-platform API that allows for 2D and 3D graphics on embedded systems. IT essentially creates a low-level interface between the software and graphics hardware system.

AT&T is upgrading its network and using 850MHz spectrum to beef up its 3G wireless network, which should help alleviate dropped calls and slow network connections for iPhone 3G and iPhone 3G S users.

Apple said this week that it sold more than a million of the iPhone 3G S model worldwide this past weekend after the phone went on sale Friday. Exactly how many of those phones were activated on AT&T's network in the U.S. isn't yet known, but the addition of more data intensive iPhones is likely to put a strain on the carrier's network.

That said, AT&T spokesman Mark Siegel told the blog Gearlog on Tuesday that the company is ready for the onslaught of new iPhone users. One of the things it has been doing to prepare is upgrading its network so that it can offer 3G wireless service using its 850MHz spectrum licenses. For the most part, AT&T has been using spectrum in the 1900 MHz band to deliver its 3G services, which have become saturated, Gearlog explains. This means that as AT&T sells more 3G devices, such as the iPhone, it has been cramming more users into an ever more crowded spectrum band.

This could explain why some users have complained of dropped calls and slow Net connections using the iPhone 3G, an issue that CNET News pointed out nearly a year ago after the iPhone 3G was launched. The problem has been particularly acute in large cities, such as New York and San Francisco, where there is a concentrated base of iPhone users and where the 1900MHz spectrum is predominant.

Siegel says that upgrading equipment to allow AT&T to use its 850MHz spectrum for 3G services should help relieve some of the congestion issues. Because the 850MHz spectrum is at the low end of the frequency band, it is able to travel longer distances and penetrate walls more easily than signals on the 1900MHz band.

When asked about problems with dropped calls for iPhone 3G users a year ago, Siegel told CNET News that the company had been working to expand the portion of its 3G network that runs on the 850MHz band. Back then he downplayed the need for adding 850MHz spectrum for 3G services by saying that it "doesn't mean you can't get a good experience on 1900MHz."

Now Siegel thinks that adding 850MHz will make a big improvement, according to the Gearlog story.

"The 850, when it's turned on in individual markets, people notice a big difference," he is quoted as saying.

In addition to adding 850MHz 3G service, AT&T has also been making other improvements to its network, such as upgrading to the next iteration of HSDPA technology, which is expected to double download speeds on AT&T's network.

Apple is reportedly offering iPhone 3G S buyers a $30 iTunes Store credit for activation delays.

(Credit: Apple)

iPhone 3G S buyers are still experiencing delays activating their new smartphones, but Apple apparently wants to make it up to them.

Apple began notifying affected customers via e-mail on Sunday that they may experience additional delays for another two days due to "system issues" and "high activation volumes," according to readers in various blogs who claim to have received the e-mail.

The problems began immediately after the new iPhone's launch Friday.

As a way of apology for the delays, the same e-mail said Apple plans to offer customers a $30 credit iTunes Store credit for "the inconvenience this delay has caused."

Here's the entire text of the e-mail:

Dear Apple Customer,

Thank you for your recent Apple Store order. We appreciate your patience and apologize for the inconvenience caused by the delay in your iPhone activation.

We are still resolving the issue that was encountered while activating your iPhone with AT&T. Unfortunately, due to system issues and continued high activation volumes, this could take us up to an additional 48 hours to complete.

On Monday, you'll receive an email from Apple with an iTunes Store credit in the amount of $30. We hope you will enjoy this gift and accept our sincere apologies for the inconvenience this delay has caused.

Thank you for choosing Apple.

Sincerely,
Apple Online Store Team

Apple representatives did not immediately respond to requests for comment.

During last July's iPhone launch as new customers tried to complete the required in-store activation process, overloaded AT&T activation servers slowed Apple Store lines to a crawl, and the servers eventually crashed altogether. Apple soon ditched the in-store activation and was simply "unbricking" phones, letting buyers activate them at home rather than hold up the line because of crashed servers.

In stark contrast to the frenzied first day sales of the original iPhone and last year's iPhone 3G, Friday's launch was marked by considerably smaller and quieter crowds for the smartphone's debut.

One analyst expected Apple to sell 500,000 iPhones this weekend. That's half as many phones as Apple sold when it launched the iPhone 3G, but Apple sold that phone in 21 countries on the first day. In comparison, the iPhone 3G S was sold in only eight countries on its first day.