Apple e-book trial- How the case has unfolded so far

Apple e-book trial: How the case has unfolded so far
Has the judge already made up her mind? Before the trial even started, Judge Cote offered to share her initial thoughts with Apple and the DOJ. Unfortunately for Apple, Cote said that based on the evidence submitted, she believed Apple to be at fault. Apple attorney Orin Snyder brought those comments up shortly after he started his opening statement, asking Cote to "hit the delete button on any tentative view that might exist in the court's mind today." Cote almost immediately cut off Snyder, saying that she only gave the opinion because both sides agreed to it, and that she wouldn't consider any documents as evidence until they're officially submitted. She noted that Apple had months to think about whether it wanted a tentative view, and her view was just that -- tentative. "This isn't a vote about whether I like Apple or anyone else does," Cote told both sides. "The deck isn't stacked against Apple. ... You have my firm commitment ... that I will do my very best to follow the law." Cote in recent days in the trial seemed to be coming around to Apple's arguments that it didn't force publishers to change their deals with Amazon. Publishing bigwigsCEOs of some of the country's biggest publishers have taken the stand in the trial. Penguin Group USA CEO David Shanks, Simon & Schuster CEO Carolyn Reidy, Harper Collins CEO Brian Murray, Macmillan CEO John Sargent, and Hachette CEO David Young have all testified about negotiations with Apple, as well as their relationships with Amazon. (Note: Simon & Schuster is owned by CNET parent company CBS.) All believed Amazon's $9.99 pricing to be too low, and all wanted a way to change it. The CEOs have testified that they didn't believe they did anything wrong, but each company reached a deal with the DOJ to settle the government's suit against them.Eddy Cue, Apple's senior vice president of Internet software and services, arrives at court in Manhattan with an Apple attorney on Thursday.Sarah Tew/CNETEddy Cue's "minion" Perhaps the funniest moment of the trial came during testimony by Simon & Schuster's Reidy. The DOJ presented e-mails between Reidy and her boss, CBS CEO Les Moonves, that talked about Reidy's conversations with Apple. She had initially met with Eddy Cue, but his deputy, Keith Moerer, later handled many conversations. Reidy told Moonves, via e-mail, that "A representative of Apple (not the head guy, but one of his minions) came to New York at the end of week before last to meet with all of the major publishers." Moerer, Apple's corporate representative in the trial, was in the courtroom when the comments were discussed. "Sorry, Mr. Moerer," Judge Cote said as people seated in the courtroom looked at Moerer and laughed. "Yes, my apologies," Reidy said. "That's just what I was thinking, your Honor." "We're all minions from some perspective, even me," Cote responded. Publishers call Amazon a bullyIt may be Apple on trial, but Amazon's name comes up nearly as often. The company dominated the e-book market at the time Apple was forming iBooks, and publishers were worried about Amazon's low pricing. After reaching deals with Apple, all of the publishers changed their terms to in what in the industry is known as an agency model, where they set the pricing. Under the previous wholesale model, Amazon had set the prices, which were at $9.99 for the latest books.Apple CEO Steve Jobs, now deceased, announced the first iPad in January 2010.James Martin/CNET Those conversations with Amazon weren't easy, the publishers testified, and Amazon even threatened them. The publishers portrayed themselves as victims of Amazon, and Apple attempted to draw parallels between itself and Amazon, showing that the different nuances of their respective deals are par for the course in the industry, and not a conspiracy to inflate prices. "They yelled and screamed and threatened," Penguin's Shanks said during his testimony the first week of the trial. "It was a very unpleasant meeting." And Simon & Schuster's Reidy said Amazon threatened to stop selling her company's physical books along with its digital books.Amazon, meanwhile, portrayed itself as the victim, forced into agreements it never wanted. Insight into content deal negotiationsApple, Amazon, and other big tech giants are understandably tight-lipped about their deal-making process. The trial has provided unprecedented insight into their wheeling and dealing. Apple has tried to show its actions are normal steps that all companies take when negotiating deals, and it has said reaching deals with publishers wasn't easy. Some notable insights we've learned about Apple's tactics:Apple's dealmakers -- Cue, Moerer, and attorney Kevin Saul -- had only a couple of months to reach deals with publishers for iBooks. Cue testified he got the go-ahead from Jobs for iBooks in November2009, and he had to have the deals done by the late-January iPad announcement.Apple commonly tells companies that "the train is leaving the station" to get them to sign deals. It often says how many companies have already signed on, and it will tell companies who else it's talking to.Apple typically pursues similar deals with all companies, saying it wants to give big and small companies "a level playing field." Apple hammers Google The most tense and "Law and Order"-like moment of the trial came on the last day of the first week. Apple started to pick away at the DOJ's claim that the tech giant conspired to inflate e-book prices by repeatedly and rapidly firing questions at a key Google witness. The tactic paid off for lead Apple attorney Snyder, who began to wear down on Thomas Turvey, director of strategic relationships for Google. Turvey appeared increasingly frazzled and frustrated as the afternoon went on.The Apple e-books price fixing trial is being argued in district court in Manhattan.Sarah Tew/CNET During his testimony, Turvey admitted that he couldn't remember which publishing executives he spoke to, the circumstances around those conversations, or any helpful details. He offered few specifics and kept referring to his written testimony. "You can't recall the single name of anyone at a single publisher?" Snyder asked."No," Turvey said, which became a common response. Smoking gun or just a draft e-mail?The DOJ in Week 2 of the trial presented an e-mail from Jobs that it said showed Apple required publishers to change their contracts with Amazon. In the message, Jobs responded to price tiers suggested by Cue: "I can live with this, as long as they move Amazon to the agent model too for new releases for the first year. If they don't, I'm not sure we can be competitive..." However, Apple's attorneys said the e-mail was simply a draft that had never been sent. Instead, they cited another version of the same e-mail, where Jobs said the following: "I can live with this as long as they also agree to the other things you told me you can get: The retail price they will set for any book will be the LOWER of the applicable 'iTunes' price below OR the lowest wholesale price they offer the book at to anyone else, with our wholesale price being 70% of such price." It's unclear whether both messages were drafts, or if one actually was sent. CNET has heard there are actually many drafts of that same message, but we'll have to see if they're presented in court. Apple attorney Snyder is likely to bring up the message during Cue's questioning Monday.Eddy CueCue is one of the most vital witnesses in the trial. He served as Jobs' right-hand man for nearly two decades, securing deals that helped Apple dominate markets such as music. The Justice Department has portrayed Cue as the "chief ringleader of the conspiracy" to control e-book pricing, and it has said his testimony would show Apple colluded with the publishers to boost digital book prices and hurt rivals such as Amazon. Conversely, Apple's attorneys are counting on Cue to reinforce their defense that Apple's actions simply were standard negotiation tactics. During his testimony Thursday, Cue admitted that Apple's deals with publishers caused e-book prices to rise, and he wasn't surprised when Amazon had to change its business terms with publishers. The Justice Department also tried to show that Apple didn't care if consumers had to pay $12.99 or $14.99 for e-books instead of $9.99, but Cue disputed such comments. Related stories:It was Apple's way or the highway, e-book execs sayApple: We wanted a 'level playing field' for publishersApple and DOJ's e-books court battle kicks offApple and the DOJ face off over e-book prices (FAQ)"Our consumers were protected by my price points," he said. "I thought we were going to treat our consumers very, very fairly." Apple's questioning of Cue started Thursday afternoon but will resume next week. Splitting up the music and book marketsAnother tidbit from Cue's testimony is that Apple considered making a deal with Amazon to split up the digital book and music markets. Apple would get music, while Amazon would get books. That would have been a very big no-no in the eyes of the government, but Apple never actually pursued that deal. The absentee witness -- Steve JobsJobs may have died nearly two years ago, but his public and private comments have played a big role in the case. Along with the draft e-mail the DOJ presented, government attorneys also have cited comments Jobs made to The Wall Street Journal that book prices would be the same at Apple, Amazon, and other retailers, and remarks Jobs made to his biographer, Walter Isaacson: Amazon screwed it up. It paid the wholesale price for some books, but started selling them below cost at $9.99. The publishers hated that--they thought it would trash their ability to sell hardcover books at $28. So before Apple even got on the scene, some booksellers were starting to withhold books from Amazon. So we told the publishers, "We'll go to the agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that's what you want anyway." But we also asked for a guarantee that if anybody else is selling the books cheaper than we are, then we can sell them at the lower price too. So they went to Amazon and said, "You're going to sign an agency contract or we're not going to give you the books."Apple, meanwhile, has argued that it's difficult to interpret someone who can no longer explain himself. And Apple's attorneys -- as well as Cue -- have said the government has misinterpreted what Jobs actually meant.What's up next week?Cue's back on the hot seat -- Although the seat won't be quite that hot, as it's Apple's lead attorney now questioning the executive. The judge has tended to ask questions of each witness, and she's likely to have a few for Cue.More experts and defense witnesses -- A debate has been going on during the trial about whether digital book prices did in fact rise after the iBookstore launched. Apple's attorneys have argued that pricing has fallen, but the Justice Department has said prices spiked "dramatically" after Apple's entry into the market. Both sides are presenting their own experts to back their claims. The DOJ is expected to rest its case after Cue's testimony is complete. After that, Apple is expected to call a couple of experts, as well as Theresa Horner, vice president of digital content at Barnes & Noble; and Robert McDonald, head of Apple's U.S. iBookstore.Closing arguments -- These are scheduled for Thursday and represent each side's last chance to make its case. WWDC 2013 keynote (pictures)See full gallery1 - 4 / 100NextPrev


iPod Shuffle (3rd-gen) review, surprises

iPod Shuffle (3rd-gen) review, surprises
The CNET review covers the nitty-gritty, but I'm here to offer a few of my own personal observations after spending a day with Apple's new Shuffle. Here's a list of ways the Shuffle surprised me.Vanishing act. Over the course of just one day, I must have lost the Shuffle at least four times--just sitting at my desk. Nicole Lee can vouch for this. She heard all my screams from the other side of the cubicle. Now, I expected this thing would be easy to lose, but the surprising part is that the Shuffle's tiny size was only part of the problem.The Shuffle's resemblance to a USB stick probably threw me the most. Since I typically have at least two or three thumb drives scattered on my desk at any given time, the addition of a nondescript black or silver $80 Shuffle is easy to dismiss. Jasmine would actually wear it. If you've ever seen a First Look video from my MP3 cohort Jasmine France, you can get a sense of how much this girl likes fashion. I wouldn't have thought in a million years that she'd go for the new Shuffle's muted, stoic design, but it turned out to be her favorite feature. I guess there's something to be said for wearable tech that just blends in, and doesn't draw attention to itself. What's not surprising: I still don't understand women.This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?YesNoSorry, you are not old enough to view this content.PlayPodcasts and audiobooks. Not everyone works out to throbbing techno at the gym. Some people take their mind off the treadmill by listening to a good book or their favorite podcast. The Shuffle now supports automatic podcast and audiobook management, and is smart enough to keep the material from popping into the default music shuffle. It's also smart enough to play these files sequentially, regardless of whether the shuffle switch is on or off. The Shuffle treats podcasts and audiobooks as playlists, so if you want to hear them you have to press and hold the button until VoiceOver starts reeling off your playlists. As a side note, the remote's volume buttons let you quickly scroll through playlists, so you're not waiting forever for VoiceOver to talk its way down to your playlist of Xylophone Songs.You can use the Shuffle with other headphones, sorta. There's a lot of groaning going on about Apple's decision to shift the controls to the headphone cable, and the effect that has on using third-party headphones or stereos. I'm totally with you. For what it's worth, though, the Shuffle will technically play music to anything that uses a standard 3.5mm connection (headphones, aux cable). I connected my Ultrasone HFI-2200 headphones to the Shuffle, switched it on, and music started playing immediately. Now, without Apple's remote clicker on the bundled earbuds, you can't control volume, pause, skip, or manage playlists--but you do get to hear music. The Shuffle always remembers the last volume setting used, and you can also throttle down the player's maximum volume using the device overview pane in iTunes.


Apple starts off new year with record App Store sales

Apple starts off new year with record App Store sales
Apple's iPhone, iPad and iPod Touch users spent almost half a billion dollars on apps and in-app purchases during the first week of January -- a new record for the App Store, the company announced Thursday. That comes on top of the single biggest day ever for sales in its App Store -- New Year's Day 2015 -- and a record-breaking 2014, Apple said. Last year billings at the App Store increased by 50 percent over 2013, the company said, and app sales provided iOS developers with more than $10 billion in revenue -- bringing the total earned by developers to date to $25 billion. Though Google's mobile operating system, Android, dominates the marketplace, developers gravitate toward Apple's iOS operating system as their top platform because users of the company's mobile devices spend more money on apps and games. On Apple's side, the App Store may not be its biggest moneymaker, but it still contributes a healthy share of revenue. Apple said last year that App Store sales came in at more than $10 billion in 2013. Though today's announcement didn't include a sales figure for 2014, the 50 percent increase in billings would presumably put that figure at somewhere around $15 billion. Since Apple snags 30 cents for every dollar spent in the store, Apple's cut of the action for 2014 could be about $4.5 billion. Apple did not respond to CNET's request for comment. The company pointed to a number of factors that it believes played a role in the App Store in 2014 and the start of 2015. Launched last year, iOS 8 included Swift, a new programming language designed to be more user friendly for developers. The latest version of Apple's mobile OS also introduced HealthKit, which lets developers of health and fitness apps tie in their data with the new Health app. Another platform, called HomeKit, allows developers to design apps to work with home-automation devices. Last year, the App Store also introduced new features such as app previews that let users watch a video demo of an app before deciding whether to download or purchase it. Another option for developers called App Bundles lets users save money by buying up to 10 apps in one shot at a reduced price. Apple also talked up its new Apple Pay mobile-payments service. Using the iPhone 6 or iPhone 6 Plus, users can tap into Apple Pay to purchase physical items at supported retailers. But they can also use the new iPhones, as well as the latest iPads, to purchase iTunes and App Store content via Apple Pay. Many of these features are still new, so it's difficult to gauge exactly how much they've influenced App Store developers, users and sales so far. Adoption of iOS 8 among Apple users has been slower than it was for iOS 7 over the same period of time. The latest numbers from Apple show a market share for iOS 8 of 68 percent. But as more people upgrade to the latest version of iOS, developers are likely to take greater advantage of the latest features.


Social TV app NextGuide moves to iPhone

Social TV app NextGuide moves to iPhone
NextGuide, the app that tells you when and where your favorite shows are on, is finally on the iPhone.Designed for iOS 7, it brings a combined view of live TV guide services with streaming services -- like Amazon Prime, iTunes, Hulu Plus, and Netflix -- to the world's most popular smartphone. It has many of the same functions as the iPad app and aims to bring together live TV and streaming videos. Users can pick their favorite shows and keep track of when, and where, the shows are available online or on TV.As more and more television has surfaced online, a handful of companies are vying to be theone-stop-shop consumers go to locate the content they're looking for. Fanhattan has long aimed to be a catch-all video search tool, and recently unveiled a Fan TV streaming box to integrate cable TV, streaming video, and DVR recordings through a single interface. M-Go, which was integrated into the popular Roku over-the-top box line earlier this week, recently added an "Also find it on" button on its Web service that will link customers to other sites that have whatever content they searched. Jeremy Toeman, chief executive of NextGuide's parent Dijit Media, said he believes NextGuide has found a place in the market, though."We first launched NextGuide a year ago on our mission to reinvent the concept of the TV Guide...we have definitely struck a chord with the modern TV fan," Toeman said in a statement. He said the iPhone app takes "a whole new approach to what the experience should be: simple, streamlined, beautiful."In addition to the NextGuide apps, the company previously launched Dijit Remote, a universal remote app linked to an infrared remote control accessory, and Miso, a social TV app that let users log what they were watching for points.


INQ Mobile intros new phones; adds Twitter

INQ Mobile intros new phones; adds Twitter
Cellphone maker INQ Mobile is launching two new low-cost cellphones optimized for social networking applications to give mobile subscribers alternatives to more expensive smartphones.INQ, which is owned by Hong Kong's Hutchison Whampoa, launched its first low-cost, "smartphone-lite" device earlier this year. And now the company is expanding its portfolio with two new devices, one of which has a full QWERTY keypad.The phones do not run full browsers and the operating system used on the device is Java-based and not nearly as sophisticated as smartphone operating systems used on devices such as the Apple iPhone or Research in Motion's BlackBerry. But INQ has integrated many of the most popular Web services, such as Facebook and Twitter, onto their handsets to give consumers a smartphone-like experience at a much lower price point. And because the device is not considered a smartphone, subscribers can typically sign up for less expensive data plans using the INQ phones.In addition to tight integration for one-click access to Facebook, Twitter, and other Web services like Skype, the new INQ devices can also sync with unprotected music stored in iTunes and Windows Media Player.Just how cheap are the INQ phones? Well, if AT&T can sell the Apple iPhone for $99 with a two-year contract, INQ CEO Frank Meehan believes that U.S. operators could afford to offer the INQ mobile devices for anywhere between $25 and $50 with a two year wireless service contract. And in many cases operators could even offer the phones for free in exchange for a two-year service commitment.The two new phones announced this week are the INQ Chat 3G phone, which has a full-QWERTY keypad and looks like a colorful BlackBerry, and the INQ Mini, which is shaped like a candy-bar and comes with a standard cell phone keypad.The devices are expected to go on sale in six countries on Hutchison's operator 3 later this year. These countries include the U.K., Ireland, Sweden, Italy, Australia, and Hong Kong. The Mini, which will cost less than $150 without a carrier subsidy, will go on sale in September. And the INQ Chat 3G, which will retail for less than $200 without a carrier subsidy, will go on sale in October.Meehan said the company is still working on a deal with a U.S. operator. But the phones could end up on this side of the Atlantic next year.


Unlocked iPhone 5 could arrive in Apple's Web store tonight

Unlocked iPhone 5 could arrive in Apple's Web store tonight
Apple will begin selling an unlocked version of the iPhone 5 tonight through its online store in the U.S., according to a new report.Citing retail sources, 9to5Mac says Apple will quietly kick off sales of the unlocked device on its online store this evening, later doing the same at its retail stores. The news comes assupply of the iPhone 5 is easing, with new orders from Apple's online site shipping in one week, down from the nearly month-long delay shortly after the product's launch in September. By selling it unlocked, it means that users can insert nano-SIM cards from any supported carrier for use on the network, as opposed to the locked phones, which are tied to the carrier they purchased the phone from. The feature comes at a cost: unlocked buyers pick up the full price of the iPhone, which is expected to start at $649, versus what is typically the subsidized $199 entry price on contract.This would not be the first time Apple has offered an unlocked iPhone in the U.S. Apple did the same thing with last year's iPhone 4S, and with the iPhone 4 before that.Apple did not respond to CNET's request for confirmation on the rumor.This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?YesNoSorry, you are not old enough to view this content.Play


Unlocked iPhone 4S coming in November

Unlocked iPhone 4S coming in November
Amid this morning's iPhone 4S preorder meltdown on Apple's online store, the company quietly announced that an unlocked version of the device is coming next month.Beneath the options to get the iPhone 4S on either AT&T, Sprint, or Verizon, the company teased that users can also wait until November to get an unlocked and contract-free version of the device."The unlocked iPhone works only on supported GSM networks, such as AT&T in the U.S.," Apple says in its description. "When you travel internationally, you can also use a micro-SIM card from a local GSM carrier. The unlocked iPhone 4 will not work with CDMA carriers such as Verizon Wireless or Sprint."Apple began offering a similar unlocked version of the iPhone 4 in June, though made no mention of such an offering during Tuesday's unveiling.In other countries, Apple has started taking preorders for unlocked iPhone 4S phones now. In the U.K., the phones cost 499 pounds for 16GB models, 599 pounds for 32GB, and 699 pounds for 64GB. In France and Germany, those three models cost 629 euros, 739 euros, and 849 euros, respectively.Updated 1:39 a.m. PT with international pricing information..CNET News writer Stephen Shankland contributed to this story.


Bing brings visual search to iPhone apps

Bing brings visual search to iPhone apps
There's a new way to search for iPhone apps, and it comes from the unlikeliest of sources: Microsoft.The new Bing Visual Search engine, announced yesterday, includes a special gallery section that spotlights iPhone apps.The Silverlight-powered collection definitely lives up to its "visual search" name, relying solely on oversize application icons. When you mouse over one, its name appears in the search field with a brief description below: developer, price, category, rank, and release date.A click of that same icon produces Bing's standard Web-search results. What you don't get anywhere is a link to the app's App Store page. That's kind of a bummer.On the other hand, Bing's search filters are really cool. You can look at the full collection of apps (about 500 altogether), the top 10 freebies, the top 10 paid, the newest, the most expensive, and so on.Within each of those views, you can sort the listings by popularity, price, release date, and name. (Say, Apple: Why can't iTunes do that?)Meanwhile, Bing also lets you narrow the search by category, price, and even publisher. So, for example, if you want to quickly cull the photography apps from any given batch, just click Category and choose Photography from the fly-out menu.Bing's presentation is very slick, with icons that drop out and fly around as you modify your search preferences. It's really a fun way to browse and search.However, with just 500 apps on display, you're getting only a fraction of what's available in the App Store. Granted, these are the "top apps," not the whole library, but it's a little frustrating when you drill into the Business category and find only two items.In any case, it's interesting to see Microsoft putting any kind of spotlight on the iPhone. And it would be more interesting still if this gallery ramped up to, say, 5,000 apps. Then it would be more than just a fun diversion; it would have some bona fide practical value.How about it, Redmond?


Better know an airport with iOS and Airport Guide

Better know an airport with iOS and Airport Guide
I used the app on my iPhone, and before I jump into what the app does, let me clear up a source of potential confusion. The app is listed as Airport Guide in iTunes, but it shows up on your phone as TravelNerd. (The developer is NerdWallet.)Screenshot by Matt Elliott/CNETThe app provides maps of the more popular airports, including international destinations. I was disappointed to find that my nearest airport in Manchester, N.H., is listed as "coming soon." It's a tiny airport, however, and easily navigated without aid. Thankfully, the more troublesome Logan Airport in Boston is included. Not only does the app provide a map of the airport and each of its terminals -- complete with a legend -- but it also features information from ground transportation and parking to restaurants and shopping to amenities such as free Wi-Fi. Screenshot by Matt Elliott/CNETYou can tap to view a map in full screen and then you can pinch to zoom. The lists of restaurants and shopping are particularly useful because you can search by terminal or alphabetically, and though each eatery and shop isn't listed on the app's terminal maps, the app does tell you which gate an established is nearest to and its hours of operation.Screenshot by Matt Elliott/CNETIn poking around the app this afternoon, I also discovered that the app provides travel updates. I was looking at the SFO terminal map and a notification popped up on the bottom of the screen, alerting me to a general delay due to low ceilings.Screenshot by Matt Elliott/CNETBefore heading home for the holidays, I would advise you to have Airport Guide at the ready for the inevitable layover that lasts longer than expected.


Apple reportedly to sell iPhone 5 cases later this month

Apple reportedly to sell iPhone 5 cases later this month
iPhone 5 owners looking for cases at their local Apple store may finally see some in the next couple of weeks.Apple-approved third-party cases could reach store shelves the week of October 22, multiple sources reportedly told 9to5Mac. Though that time frame could change, the cases should at least appear by the end of October.Best iPhone 5S and iPhone 5 cases (pictu...See full gallery1 - 4 / 93NextPrevThe iPhone 5 hit stores almost three weeks ago, but Apple has been slow in stocking cases, screen covers, and other accessories.Why the delay? Apple has to certify and approve every product sold in its stores, including those from third parties. And that process can be a lengthy one.A salesman at my local Apple store told me last week that he expects cases to arrive within the next two or three weeks. He also explained Apple's need to ensure that every product sold in its stores meets a certain standard and level of quality.Related storiesiPhone 5 case roundup from A-ZNew iPhone 5 case offers to fix purple flaresThe most obnoxious iPhone 5 case?Finally, the iPhone we've always wanted Of course, plenty of other retailers have been carrying cases for the iPhone 5.I bought a case for the new phone at a third-party store. It serves the purpose of protecting the phone's new aluminum siding from scuff marks, a complaint among many iPhone 5 owners. But I usually find a more varied and higher-quality collection of cases at the Apple store.And though I can always buy one online, I prefer to shop in a brick-and-mortar outlet where I can try out the cases to find the right one.Apple's retail stores are also behind in carrying Lightning adapters and other products compatible with the new interface. Apple has reportedly just started shipping the new Lighting to 30-pin adapters to people who ordered them online. The company's Web site now lists the ship date for the new adapter as two to three weeks.This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?YesNoSorry, you are not old enough to view this content.Play


Apple reportedly taps Pegatron to make new low-cost iPhone

Apple reportedly taps Pegatron to make new low-cost iPhone
Apple is reportedly reducing its dependence on electronics manufacturer Foxconn by throwing more business to Foxconn competitor and Apple partner Pegatron.Pegatron, which already makes some iPhones and iPad Minis, has been chosen to be the primary assembler of a low-cost iPhone expected to be unveiled later this year, according to a Wall Street Journal report. Despite Apple's longtime business relationship with Foxconn, CEO Tim Cook wants to achieve greater balance in the company's supply chain by shifting more work to Pegatron, the Journal reported.The shift is also reportedly due in part to Foxconn's production troubles with the iPhone 5, which is thinner and taller than its immediate predecessor, the iPhone 4S. One unidentified Foxconn executive told the Journal last year that producing the iPhone 5 is "very complicated," causing supply issues. The official went on to say that the handset is "the most difficult device that Foxconn has ever assembled."CNET has contacted Apple and Foxconn for comment and will update this report when we learn more.Pegatron is reportedly going on a hiring spree, with plans to beef up its workforce in China by up to 40 percent during the second half of the year, leading to suspicion that the company is equipping its factories to produce the much-rumored low-cost iPhone.Charles Lin, Pegatron's chief financial officer, declined to comment to Reuters earlier this month as to whether the company would produce a low-cost iPhone this year. But Lin did say that 60 percent of Pegatron's 2013 revenue is expected to come during the second half of 2013.Analyst Gene Munster is eyeing a September release of a $300 nonsubsidized iPhone, which could bring in unit sales of 75 million next year. The cheaper iPhone is reportedly expected to go into trial production as soon as next month, but some sources speculate it won't come out until the fourth quarter.


Apple reportedly signs Samsung for next-gen iPhone chips

Apple reportedly signs Samsung for next-gen iPhone chips
Apple and Samsung's relationship is apparently not so strained as to prevent the South Korean electronics giant from providing the chips that will power future iPhones, a recent report claimed.Samsung will supply Apple with A9 chips based on a 14-nanometer process node starting in 2015, the Korea Economic Daily reported Monday. The chip would go into production in 2015 and power an iPhone, theoretically called the iPhone 7, which could be released in the latter half of that year, according to the report. The report comes a few weeks after another news agency reported that Apple and Taiwan Semiconductor Manufacturing Company had reached a three-year deal for developing Apple's A series chips, extending all the way to silicon called the A9. CNET has contacted Apple and Samsung for comment and will update this report when we learn more.To date, Samsung has been the exclusive manufacturer of Apple's A series processors for its iOS devices -- including the current A6 chip. But Apple reportedly has been reducing its chip orders to the South Korean electronics giant for its next-generation iPhone as it tries to diversify supply lines and reduce its dependence on its legal foe and competitor. Apple reportedly tried to secure exclusive access to TSMC smartphone chips by making an investment offer to the custom chipmaker in excess of $1 billion. The cash would have assured Apple that production would have been reserved for its products, but TSMC rejected the bid -- along with a similar one from Qualcomm, Bloomberg reported last month.Apple reportedly is exploring a possible deal with chipmaker Globalfoundries to produce future chips, giving the company the kind of control over both design and chip manufacturing that Intel has. However, a semiconductor industry source told CNET that Apple and Globalfoundries were "kicking the tires," but that "by no means" is any firm deal imminent at this point.


Apple reportedly settles iPhone warranty suit for $53M

Apple reportedly settles iPhone warranty suit for $53M
Anyone who got into it with Apple over botched early versions of the iPhone and iPod Touch may be in the running to get some extra cash.The hardware giant has agreed to shell out $53 million to settle a class action lawsuit originally filed against the company in 2010, according to Wired. The suit involved Apple vs. user warranty disputes.Apparently, thousands of owners of the original iPhone, iPhone 3G, iPhone 3GS, or the first three generations of the iPod Touch who unsuccessfully haggled with Apple to get their defective device replaced or repaired under warranty can submit claims in the suit. Payouts could be around $200 depending on how many people submit claims, according to Wired. For these devices, Apple had one-year standard and two-year extended warranties but in many cases the company claimed it was the users who damaged their iPhones and iPod Touches. According to Wired, if an indicator placed inside the device had changed from white to pink or red, it proved there was water damage. However, 3M, which made the indicators, later said that heat could also cause color change.According to Wired, the settlement will be filed in San Francisco federal court in the next few weeks. Originally there were dozens of cases involving this issue but they were all combined into one class action suit. In agreeing to settle, Apple does not have to admit wrongdoing.CNET contacted Apple for comment. We'll update the story when we get more information.


Apple reportedly reaches deal with TSMC for next-gen chips

Apple reportedly reaches deal with TSMC for next-gen chips
Apple and Taiwan Semiconductor Manufacturing Company have reportedly reached a deal on next-gen Apple chips, extending all the way to silicon called the A9. TSMC and its chip-design partner have secured a 3-year deal for Apple's A series chips, according to report on Monday at Digitimes. "A deal whereby TSMC replaces or supplements Samsung, the incumbent supplier of Apple processors," the report said.TSMC would be used for Apple's future A8, A9, and A9X chips, Digitimes said.There is no mention in the article of the expected A7 chip (Apple's latest is the A6/A6X, now used in the iPhone 5 and iPad 4, respectively). The A7 is rumored to be used in the iPhone 5S and future iPads.That may, or may not, imply that Samsung will make the A7 series of chips.Only future teardowns of Apple products will reveal which company is manufacturing which chips. The timing of the A8 seems early.Digitimes claims that chip will be used in an iPhone slated for release in "early 2014."That leaves precious little time between a rumored A7 and its expected successor the A8.Typically, there is at least 12 months between processor generations. But note that production of a new chip begins at least several months (often longer) before a product is actually delivered with the chip.The A9 and A9X are set for production in late 2014, the report claims. CNET has contacted Apple for comment and will update this report when we learn more. [Via EE Times ]


When Is the Right Time to Turn Your Phone Off at the Movies

There;s a lot of discussion these days about texting and other usage of smartphones at the movies. Most of us are dead set against it. There should be no noise, no lights and definitely no Facebook checking while others around you are trying to enjoy the show. But we tend to presume we;re talking about etiquetteduringthe feature presentation. What about the rest of the time we;re in the auditorium? Nowadays there;s preshow countdown programming and nonmovie ads and then the traditional trailer run, and the last of these at least used to be almost as sacred as the movie itself. Maybe the trailers aren;t as important now that we all watch them on our computers, typically days before they arrive at the multiplex. Or maybe it;s that we;re in general so immersed in knowing what movies are coming out months to years from now that we just don;t place as much importance on trailers as we used to. Regardless of why, it;s become apparent that people are less and less shutting off their phones and shutting off their conversations during this part of the experience. Sometimes they don;t even settle and quiet down during the feature;s many studio logos or the opening credits if that;s all that the movie begins with. Today, Deadline reported that one company is looking into ways to get the audience to shut their phones off when the trailers begin. Of course, it;s the ad-focused National CineMedia, which would obviously like us to be paying attention to all the commercials, whether for cars or movies, it puts in front of us. The company;s people understand they can;t win during the preshow, however, and are concentrating on the moment the lights go down and the first green MPAA rating screen hits the screen. The idea is to have the message to shut off your phones sent directly to our phones just as the trailers begin. Whether that would work or not, I am curious today about when you all think is the right time for the phone to go off. And maybe also when it should come back on, as well. Is there anyone who gets upset when the end credits come on and a hundred little blue lights suddenly pop back up through the darkness? Personally, I;m admittedly guilty of caring more about Twitter during the trailers, even if I haven;t seen them all (most are terrible anyway), and as soon as the movie ends (gotta tweet my reaction!) At what point during the preshow does movie theater etiquette (phone off, mouths shut, etc.) begin? Here are some responses received so far via Twitter: @thefilmcynic my rule of thumb is I won;t bother anyone to shut off their phones until the studio credits start rolling — Andrew Robinson (@gmanreviews) September 26, 2013 @thefilmcynic In theory, etiquette should start when the lights go down. Whether that happens with the film or trailers is theater;s choice. — Cameron Carpenter (@Lumetian) September 26, 2013 @thefilmcynic All;s fair game until the first studio logo shows up. — Dan Schindel (@DanSchindel) September 26, 2013 @thefilmcynic When the lights go all the way down, which in my local AMC is right before the main feature, everything else should stop. — Jason Seas (@jasonseas) September 26, 2013 @thefilmcynic Preferably when the trailers start, but my tolerance runs out the moment the movie begins. — Matt Goldberg (@MattGoldberg) September 26, 2013 @thefilmcynic Ads, sure; trailers, prefer not; feature, no way. — Daniel Carlson (@danielwcarlson) September 26, 2013 @thefilmcynic I mainly hate the extra noise during ads/trailers b/c it gets so loud in the theater. — Daniel Carlson (@danielwcarlson) September 26, 2013 @thefilmcynic All good until the feature starts... unless there;s a hugely anticipated trailer coming up. — Alex (@achance42) September 26, 2013 @thefilmcynic Ideally when the lights go down, but I;m guilty of being on my phone sometimes during trailers. So when the film starts — Josh Gripman (@gripmonster) September 26, 2013 @thefilmcynic when the lights go down, the talking should stop. Only exception might be in between each trailer to comment to friends. — Daniel Howat (@howatdk) September 26, 2013 @thefilmcynic Annoying enough during trailers, but once they end there should be no talking, no phones. — Teri (@tmvogel) September 26, 2013 @thefilmcynic When the lights go down, you put the phone away. — North/South Film (@NorthSouthFilm) September 26, 2013 @thefilmcynic I personally power off my phone & shut up when pre-show ends. Ideally, it should start at the trailers. — Bernardo Villela (@BernardoVillela) September 26, 2013 @thefilmcynic When the cinema;s advertising says so. — The AlmostFilmCritic (@almostflmcritic) September 26, 2013 Join in the next discussion: and