Edible Apple

China Daily reports that China Telecom, the third largest carrier in China behind China Mobile and China Unicom, may begin carrying the iPhone 4S as early as February.

The move would ramp up the pressure on the company’s domestic rivals in the fight to win more subscribers to the third-generation (3G) network service.

In a news release on Monday, Beijing Telecom Co Ltd, a subsidiary of China Telecom, said the CDMA-version iPhone 4S is likely to hit the domestic market by the end of February, or at the beginning of March. However, no pricing details were disclosed.

“China Telecom has already started preparatory work for the launch of the iPhone 4S,” according to the press release.

Experts pointed out that it is possible for China Telecom to present the iPhone 4S as soon as possible, since the device, built for the company’s CDMA2000 network, has already obtained all three required operating licenses.

Well it seems that Samsung’s strategy of suing Apple for allegedly infringing RAND patents is coming back to bite them in the ass.

Foss Patents reports:

The European Commission just announced that it has “opened a formal investigation to assess whether Samsung Electronics has abusively, and in contravention of a commitment it gave to the European Telecommunications Standards Institute (ETSI), used certain of its standard essential patent rights to distort competition in European mobile device markets, in breach of EU antitrust rules”.

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After months of searching, Apple today announced that Dixons Retail CEO John Browett will succeed the recently departed Ron Johnson as the company’s Senior Vice President of Retail.

Apple today announced that John Browett will join the company as senior vice president of Retail, reporting to Apple CEO Tim Cook. Browett comes to Apple from European technology retailer Dixons Retail, where he has been CEO since 2007. Beginning in April, he will be responsible for Apple’s retail strategy and the continued expansion of Apple retail stores around the world.

“Our retail stores are all about customer service, and John shares that commitment like no one else we’ve met,” Apple CEO Tim Cook said in a press release. “We are thrilled to have him join our team and bring his incredible retail experience to Apple.”

Apple’s search for a replacement for Johnson began last Summer and the company was reportedly looking for someone with international retail experience as the company begins to look more intently at expanding its retail presence abroad. They even tapped the esteemed search firm of Egon Zehnder International, reportedly at the behest of Steve Jobs, to help them along in their search.

Before assuming the CEO position at Dixons Retail, Browett worked in a variety of executive positions at Tesco plc, one of which included the CEO of Tesco.com. Apple’s press release notes that Browett received a degree in Natural Sciences from Cambridge University before going on to receive an MBA from Penn’s Wharton Business School

It may be just a hobby, but sales of the Apple TV continue to impress. Apple revealed during its earnings conference call last week that Apple had sold 1.4 million Apple TV units during the holiday quarter, setting an all-time quarterly record in the process.

All told, the company sold about 2.8 million units during all of 2011, suggesting that Apple TV sales are accelerating – though of course, remember that the holiday quarter is always the busiest across all of Apple’s product lines. Also of note is that Apple, in early October, launched the Apple TV in seven new countries, a factor which no doubt also played a role in Apple’s Apple TV sales for the quarter.

During the conference call, a reporter asked Cook about the Apple TV and Apple’s potential interest in controlling the living room.

“We continue to add things to it,” Cook said, “and if you’re using the latest one… I don’t know about you, but I couldn’t live without it. We continue to pull the strings and see where it takes us.”

A few weeks ago, a research firm issued a report stating that Apple will sell upwards of 4 million Apple TV units in 2012. If the uptick in Apple TV sales isn’t a fluke, that may very well be doable.

From the type of wood used on the displays at Apple retail stores to the exact shade of white chosen for the iPhone, Apple’s attention to detail is obsessive, and indeed, is a huge factor in the company’s ongoing success.

Apple arguably doesn’t just sell consumer electronic products. Rather, their mission is much broader.

They sell a complete user experience meant to imbue an emotional response when customers, for example, walk through an Apple retail store and even, believe it or not, when they open up a box containing the latest iPhone or iPod.

NetworkWorld highlights Apple’s obsessive attention to detail by pointing out an excerpt from Adam Lashinsky’s new book, Inside Apple, which describes the degree to which Apple takes packaging design as seriously as the product itself.

To fully grasp how seriously Apple executives sweat the small stuff, consider this: For months, a packaging designer was holed up in this room performing the most mundane of tasks – opening boxes.

One after another, the designer created and tested an endless series of arrows, colors, and tapes for a tiny tab designed to show the consumer where to pull back the invisible, full-bleed sticker adhered to the top of the clear iPod box. Getting it just right was this particular designer’s obsession.

What’s more, it wasn’t just about one box. The tabs were placed so that when Apple’s factory packed multiple boxes for shipping to retail stores, there was a natural negative space between the boxes that protected and preserved the tab.

What for many is an ostensibly small detail, for Apple, is a huge part of the user experience. For Apple, the iPhone, or more broadly speaking the smartphone, is anything but a commodity. They view it as a work of art, and they treat it accordingly.

In the wake of Apple’s stellar earnings announcement last week, shares of APPL have skyrocketed into the $450 range. In doing so, Apple has surpassed Exxon as the most valuable company in the world.

What’s scary, though, is that Apple still has plenty of room for grow. Apple’s share of the phone and PC market is still relatively small, and if Apple is making this much money via iPhone and Mac sales right now, imagine what’ll happen once their marketshare really starts to take off.

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Following the release of the iPhone 4S, Apple for the first time made one of its older iPhone models – the 3GS – available for free to consumers on contract. With many Android models available at cheap pricepoints, Apple was clearly trying prevent a price umbrella over competing products.

Now it’s to be expected that the newest iPhone model – the 4S – would be significantly more popular than the 2+ year old 3GS, but recent data compiled by Consumer Intelligence Research Partners (CIRP) reveals that most customers, by and large, are completely ignoring the 3GS.

The following chart from CIRP shows that 89% of the 37 million iPhone devices Apple sold this past quarter were of the 4S variety. Meanwhile, 7% were iPhone 4s while a paltry 4% were 3GS devices.

Now does this demonstrate that there’s no market for free iPhones?

Not at all.

Keep in mind that the iPhone 3GS is only available for AT&T subscribers as a CDMA version of that model was never created. Consequently, Sprint and Verizon customers have no option for a free iPhone at all.

The report further notes:

Interestingly, the higher-end 4S models sold particularly well. Of that 89 percent figure, 21 percent were 64 gigabyte models, 34 percent were 32GB, and 45 percent were 16GB. So, while a lot of folks have been willing to spring for the $199 16GB 4S, an impressive number have been willing to cough up the $399 for the 64GB.

Also interesting is that 19% of iPhone 4S buyers were upgrading from the iPhone 4, meaning that the allure of the new iPhone was enough to justify them breaking out of their contracts and paying more money for the latest and greatest from Apple. Though with the resale value of the iPhone 4 nothing to scoff at, perhaps it wasn’t the biggest monetary hit.

And if you think that’s something, just wait until Apple releases the iPhone 5.

Watch out, Samsung.

via All Things D

Responding to the New York Times’ expose into the working conditions at some of the plants owned by Apple’s manufacturing partners, Tim Cook last week sent an email to company employees.

Cook’s email reads:

Team,

As a company and as individuals, we are defined by our values. Unfortunately some people are questioning Apple’s values today, and I’d like to address this with you directly. We care about every worker in our worldwide supply chain. Any accident is deeply troubling, and any issue with working conditions is cause for concern. Any suggestion that we don’t care is patently false and offensive to us. As you know better than anyone, accusations like these are contrary to our values. It’s not who we are.

For the many hundreds of you who are based at our suppliers’ manufacturing sites around the world, or spend long stretches working there away from your families, I know you are as outraged by this as I am. For the people who aren’t as close to the supply chain, you have a right to know the facts.

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Lebron James arguably lacks that killer instinct that separates the great players from the truly legendary ones, but there’s no questioning that Lebron as an athlete is capable of doing things that most NBA players can only dream of.

Earlier today, while playing the Chicago Bulls, James completed an alley-oop from Mario Chalmers by JUMPING OVER and dunking on Bulls guard John Lucas!

And yes Lebron Haters, Lucas is only 5’11, but still – this is undoubtedly one of the best NBA plays you’ll see all season and is perhaps destined to become iconic. Now we’re just waiting for Blake Griffin, somehow, to top it.

What’s better ya’ll, this dunk or Vince Carter’s famous dunk during the Olympics?

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The New York Times last week published an extensive piece highlighting the human costs associated with manufacturing Apple products, kicking things off with the retelling of an explosion in May 2010 at a Foxconn factory that killed two individuals and injured over a dozen more.

Describing the working conditions abroad in China, the Times writes:

Employees work excessive overtime, in some cases seven days a week, and live in crowded dorms. Some say they stand so long that their legs swell until they can hardly walk. Under-age workers have helped build Apple’s products, and the company’s suppliers have improperly disposed of hazardous waste and falsified records, according to company reports and advocacy groups that, within China, are often considered reliable, independent monitors.

More troubling, the groups say, is some suppliers’ disregard for workers’ health. Two years ago, 137 workers at an Apple supplier in eastern China were injured after they were ordered to use a poisonous chemical to clean iPhone screens. Within seven months last year, two explosions at iPad factories, including in Chengdu, killed four people and injured 77. Before those blasts, Apple had been alerted to hazardous conditions inside the Chengdu plant, according to a Chinese group that published that warning.

Citing a high-ranking source at a major electronics retailer, Technobuffalo reports that Apple’s rumored HDTV will likely see the light of day by April, or May at the absolute latest. As for the TV itself, it’s rumored to be a 42-inch OLED described as being ‘gorgeous’ and ‘very thin’.

While we don’t know if the set will be running it’s own version of iOS, we do know that will have deep integration with devices running the popular operating system. They’ll also sport Siri style voice controls as well as facial recognition software, and plans for the TV’s voice control system are said to far exceed what’s currently in use on the iPhone 4S. And if the user opts to not use voice, an iOS device can be used as a stand in remote. Apple execs are reportedly describing the new product line as a “hub” to your life, replacing the PC as the most-used device in a consumer’s home. Welcome to the “Post-PC Era.”

Our source said Apple is exploring the notion of using the set to control other connected devices in the home; think along the lines of ovens that pre-heat while you’re watching TV before dinner, and garage doors that can be closed by voice command while you sit on the couch. No details were given as to whether Apple would consider manufacturing such devices, though given their history, a “Made for iPod” style accessory program would be a natural fit for a TV-based connected home system.

Our source also said the controls for the television set would be unconventional and unique. The TV will follow the Apple tradition of going into power-saving sleep mode more often than actually turning off. Thanks to facial recognition software, something we’ve known Apple has been playing around with for some time now, the television will reawaken when someone it recognizes walks in the room. Should two recognized users be present in the room at the same time, an iOS app can be used to tell the set which person should be given control.

Well the report certainly sounded credible at first, no? But we quickly became skeptical, to put it mildly, when we saw mention of ovens and garage doors. A 42-inch OLED though? Intriguing. The only question, though, is price. There are no shortage of amazing HDTV sets on the market. A quick trip to Best Buy reveals a plethora of incredible LED sets from the likes of Samsung and LG. OLED is nice, but Apple will need more than an incredible picture to compete in an aggressive market with already paper-thin margins.

The new interactive textbooks Apple showcased last week are quite similar to the highly praised and innovative iPad app “Our Choice”, which of course is based on a book by Apple board member and former Presidential candidate Al Gore. And not surprisingly, Apple’s textbook creation framework is similar in nature to the easy-to-use framework developed by Push Pop Press, an iPhone development company founded by former Apple engineers Mike Matas and Kimon Tsinteris.

Facebook, oddly enough, actually acquired Push Pop Press this past August, claiming that they have no interest in getting involved with digital publishing but rather want to integrate “some of the ideas and technology behind Push Pop Press” into Facebook.

This past Friday, AppleInsider published an interesting rumor claiming that Steve Jobs had at one point met with Matas and warned him that Push Pop Press’ physics engine was built using patented Apple technology and that if Push Pop Press continued to exist in the dynamic book building sphere, they’d be risking a lawsuit from Apple. Indeed, AI claims that an ultimatum from Jobs served as the impetus behind Push Pop Press’ sale to Facebook a few months back.

A key element of the patent conflicts surrounded the “physics engine” Matas was credited with designing for the new company; Matas is listed as a contributor to a number of patents that are assigned to Apple. In many states, work created while employed by a company belongs to that company and can’t be used without permission after the employee leaves.

Over the course of 2011, while Push Pop Press developed its publishing tools and worked with Apple board member Al Gore to deliver his “Our Choice” book as a flagship example of what the new publishing platform could deliver (shown below), Apple itself was busy working on developing its textbook strategy.

Apple had already delivered its Xcode 4.0 and iAd Producer development tools in 2010, delivered last year’s new iBooks app alongside iPad 2, and was preparing to release basic EPUB support in Pages 09. But it was also deep into development of its iBooks 2.0 strategy revolving around the iBooks Author and iTunes U initiatives announced earlier today, at the heart of which were textbooks aimed at deployment on iPad.

Now this of course all sounds very dramatic: Jobs, Apple CEO and co-founder, issuing an ultimatum to an upstart and innovative company comprised of former Apple engineers.

But in-the-know Apple blogger John Gruber writes, citing his own well-established sources, that no legal threat was ever made.

The story I’ve heard is a little different, and a lot less dramatic. What a well-informed little birdie told me is that it wasn’t a legal threat over patents or technology, but rather something more like Panic’s classic story about iTunes and Audion (or maybe you more like Jobs’s hint regarding the then-upcoming iPhoto at the end of that tale). I.e. that Jobs more or less warned Push Pop Press that Apple was going in the same direction, in a big way. A competitive warning, not a legal threat.

While we have no way of knowing which version is more accurate, Gruber’s story jibes a bit more with a story we heard about Jobs and Apple’s attempt to acquire Dropbox.

According to Dropbox co-founder Drew Houston, Apple offered Dropbox $800 million but negotiations ultimately never went anywhere because Dropbox wanted to remain an independant company.

Jobs smiled warmly as he told them he was going after their market. “He said we were a feature, not a product,” says Houston. Courteously, Jobs spent the next half hour waxing on over tea about his return to Apple, and why not to trust investors, as the duo—or more accurately, Houston, who plays Penn to Ferdowsi’s mute Teller—peppered him with questions.

So yeah, take that for what it’s worth.

Apple’s retail guru Ron Johnson may have left the company, but Apple remains steadfastly committed to rolling out more and more retail shops across the globe.

In that vien, livemint reported last week that Apple is considering opening up its first retail store in India. Interestingly, the option for Apple only became available recently following the Indian government’s about face with respect to allowing “full ownership of single-brand retail stores by foreign companies.”

Of course, it’s not as if Apple products can’t be found in India as Apple has reseller agreements in place with large retailers such as Imagine and iStore.

While it remains unclear to what extent Apple may explore retail options in India, the “doors are now open” a government official said.

The government last week notified the single-brand retail policy, allowing 100% FDI in single-brand retail trading and consequently set the stage for global retail firms to roll out investments to open fully-owned stores in India. The move freed up the 51% limit that had been in place.

However, proposals involving FDI beyond 51% will have to mandatorily source at least 30% of the total value of the products sold from Indian small industries, village and cottage industries, and artisans and craftsmen.

When asked whether the 30% local sourcing clause will be a hindrance, the DIPP official said, “Let Apple finalize its business plan and the investment it wants to make. If they tell us that the 30% sourcing is a problem, at that stage we will look into it,” he said.

Apple, per usual, had no comment on the matter.

Apple isn’t exactly synonymous with seamless cloud computing solutions, but Apple’s iCloud roll-out thus far has seemingly gone off without a hitch.

Speaking to Apple’s iCloud initiative, Tim Cook noted during Apple’s recent earnings conference call that the company viewed iCloud not merely as a product or service, but as an integral part of the company’s future. More specifically, Cook noted that over 85 million people have already signed up for the service.

It’s almost cliche to say it, but a clear factor in the success of iCloud is the simple fact that, as Steve Jobs explained when  introducing the service, “it just works.” The seamless syncing across devices of songs and documents, all for free, works quietly in the background as user’s don’t need to fiddle with login names and clunky preference panes etc.

The development and release of iCloud, Tim Cook explained, was a “fundamental shift recognizing that people had numerous devices and they wanted the bulk of their content in the cloud, and easily accessible from all the devices.”

Interestingly, Apple’s initial cloud strategy included an attempt to acquire Dropbox. The company, however, refused an $800 million acquisition offer from Apple, but not before Steve Jobs warned them that Apple was going after their business in a big way.

Further highlighting the seriousness with which Apple views iCloud, Cook didn’t mince words: “It’s just not a product. It’s a strategy for the next decade.”

For the first time in history, Nintendo anticipates that it’ll experience its first annual loss since 1981.

Bloomberg reports:

Nintendo Co., the world’s largest maker of video-game machines, forecast its first annual loss in at least 30 years after the yen reached a postwar high and the new 3DS console had weaker-than-expected sales.

The net loss may be 20 billion yen ($264 million) for the year ending in March, compared with a previous projection for a 20 billion-yen profit, Kyoto, Japan-based Nintendo said in a statement yesterday. That compared with the 12.2 billion-yen average profit of 22 analysts’ estimates compiled by Bloomberg.

Nintendo, which gets about 80 percent of its revenue from the Americas and Europe, is predicting lower profit after the yen gained against the dollar and surged to a decade high against the euro, trimming the repatriated value of overseas sales. President Satoru Iwata cut the price of the 3DS by 40 percent in August as gamers flock to Apple Inc. (AAPL)’s iPhone and iPad, and Facebook Inc.’s website.

Apple’s not the only company with record breaking iPhone news this week. AT&T earlier today reported their earnings for the December quarter and noted that they actiavted 7.6 million iPhone 4S devices during that period, a figure significantly higher than the 4.2 million iPhone activations Verizon reported recently.

The 7.6 million iPhone activations represents an all-time quarterly high for AT&T, and incredibly, iPhone sales comprised 80.8% of AT&T’s total 9.4 million in smartphone sales. And of those 7.6 million actiavtions, AT&T noted that the majority of them were for the iPhone 4S

In the fourth quarter, the company set a new record with 9.4 million smartphones sold, nearly double the number sold in the third quarter and 50 percent more than the previous quarterly record. Fourth-quarter smartphone sales represented more than 80 percent of postpaid device sales. Both iPhone and Android device sales set records. During the quarter, more than 7.6 million iPhones were activated, the majority of which were iPhone 4S, which went on sale Oct. 14, and more than twice as many Android smartphones were sold versus the fourth quarter a year ago. iPhone sales were helped by a superior customer experience, with AT&T delivering download speeds up to three-times faster than on other U.S. carriers’ networks.

All told, AT&T’s revenue for the quarter checked in at $32.5 billion, a 3.6% increase from teh same quarter a year-ago.