Patent smackdown: Apple teams up with Microsoft to bid against Google and Android OEMs for Kodak’s patents

The patent arms race is reaching a feeding-frenzy stage. Over the past months, we’ve witnessed a series of high profile legal spats between the technology companies that make our beloved gadgets. A quick recap of the most visible battles includes the Oracle vs Google trial, the Samsung vs Apple global conflagration, the Microsoft vs Motorola case that caused the ban of all Motorola devices in Germany, and the Apple vs HTC debacle, which affected the availability of the One X and the EVO 4G LTE in the USA.
Tech corporations are suing each other like madmen, but unfortunately, their actions mostly affect consumers. We get fewer products on the market, and the products that are available are made dumber. The war is likely to continue for the foreseeable future and the players are accruing weapons at a staggering rate.
A new stash of patents is about to be sold to the highest bidder. On Monday, the patent portfolio of Eastman Kodak, the legendary photography company, will be sold in an auction. Two major forces emerge as potential winners – on one side, Apple allied with Microsoft and patent troll aggregation firm Intellectual Ventures. On the other side, Google got together with the biggest Android OEMs – Samsung, HTC, and LG – along with a patent troll of its own, the RPX Corporation.
The two consortiums will try to win the battle over Eastman Kodak’s 1100 patents, most related to photographic technology. Kodak has a great deal of intellectual property that could prove essential for anyone manufacturing a product that incorporates a digital camera. According to WSJ, alliances are still made and broken, and the situation is still in flux.
As a reminder, it wouldn’t be the first time Google would square off with the Apple-Microsoft team – last year, Google lost the auction for Nortel’s patent trove, which eventually went to the Apple-Microsoft consortium for $4.5 billion. It’s unclear how valuable Kodak’s portfolio is, but experts seem to agree that it is far less valuable than Nortel’s stash.
We’ll keep you posted on any new developments next week.

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Analysis: Apple sounds warning bell for smartphone industry

If Apple Inc's weaker-than-expected quarterly result is anything to go by, the global smartphone industry is a lot more vulnerable to economic shocks these days than during the 2008-2009 financial crisis.In developed markets, every other person already owns a smartphone. In emerging markets, penetration rates are much lower, but cheaper phones that cost under $100 are squeezing profit margins.
That was not the case during the last recession, when Apple's iPhone and Google Inc's Android were still in their infancy. Smartphone demand remained strong even as sales of other electronics declined because consumers felt it was worthwhile to upgrade to a device with so much to more to give - touchscreens, email and full Web browsers.
Without a technology breakthrough such as touchscreen - made popular by the first iPhone in 2007 - people are in far less of a hurry to upgrade their phones this time around, analysts said.
That was evident from Apple's June quarterly results, which showed a much bigger hit from the European debt crisis than Wall Street expected.
"The economy is having an impact on all electronic goods. Even Apple, which did defy gravity in the last recession, is not escaping now," said Hudson Square Research analyst Daniel Ernst.
Smartphone users, who typically upgrade their phones every 18 to 24 months, are now holding on for three months longer than usual, according to Gartner analyst Carolina Milanesi.
"The reason to upgrade is less urgent" she said.
PRICE PRESSURE
Overall smartphone shipments rose 32 percent in the second quarter, their slowest pace since 2009's 16 percent increase, according to Strategy Analytics. The research firm forecast annual smartphone shipment growth would slow to 40 percent in 2012 from 68 percent in 2011 and ease further to 23 percent in 2013.
Analysts say demand from emerging markets will support smartphone shipments even if the global economy takes a turn for the worse, but a growing supply of lower price devices from vendors such as Huawei Technologies Co Ltd and ZTE Corp will pressure prices even if the economy improves.
"We're forecasting ASPs (average selling prices) to dip in 2013 and accelerate from there on," said Strategy Analytics analyst Neil Mawston. "If the economy continues to flat line or dip that will accelerate the move to lower cost models."
The popularity of Apple's iPhone and Samsung Electronics Co Ltd's Galaxy S will give these companies some pricing insulation, analysts said.
But there could be much more pressure for price cuts at already struggling smartphone vendors, such as LG Electronics Inc, HTC Corp, Nokia Oyj and BlackBerry maker Research In Motion Ltd.
"Apple and Samsung's ownership of the high-tier and intense price erosion means the fight among others will be cutthroat," said CCS Insight analyst Geoff Blaber.
The tough road ahead for smaller vendors became more apparent this week, when market leader Samsung reported its best quarterly smartphone sales in history as it outsold Apple and won customers from smaller rivals. Samsung's bigger size allowed it to drive down costs and still make a profit on phones that would generate a loss for smaller rivals.
Some of Apple's earnings miss was attributed to consumers postponing purchases in anticipation of a new iPhone model hitting store shelves this fall. LG did not have that excuse - its cellphone division, which accounts for around one-fifth of sales, posted a quarterly loss as competition forced LG to spend more on marketing for cheaper phones.
LESS PURCHASING POWER
According to Gartner, about 35 percent of an estimated 1.9 billion cellphones sold this year will be smartphones. Between 20 percent and 25 percent of people in the world already own smartphones, with the penetration rate rising to 50 percent to 55 percent in the United States.
"The first wave is selling expensive models to affluent buyers. The second wave is selling lower cost models to less affluent buyers," Strategy Analytic's Mawston said.
Gartner's Milanesi said Huawei and ZTE are in the best position among the lower-tier smartphone vendors.
"If price is the first driver I'm going to pick the Chinese," said Milanesi, who said LG and HTC are most vulnerable to price declines as they "need more to stand out."
Also putting pressure on handset makers are the wireless service providers on which they are heavily dependent in many regions such as Europe and the United States for promotions. Carriers often subsidize phones to encourage their customers to commit to long term contracts.
In Europe, some operators such as Telefonica have been dropping subsidies entirely. The top three U.S. operators, Verizon Wireless, AT&T Inc and Sprint Nextel Corp have all been improving profit margins because they cut down on their subsidy costs by offering customers upgrades less frequently.
If consumers do have to cut spending because if the weak economy, IDC analyst Ramon Llamas said: "There's smartphone available for just about every single budget out there."

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Apple, Samsung take patent fight to crucial California trial

1 of 2. An Apple retail store is seen in Carlsbad, California April 6, 2012.
Credit: Reuters/Mike Blake
By Dan Levine and Poornima Gupta
SAN FRANCISCO | Sat Jul 28, 2012 12:13am EDT
SAN FRANCISCO (Reuters) - Apple Inc and Samsung Electronics Co Ltd take their battle for mobile supremacy to court on Monday in one of the biggest-ever technology patent trials, a case with the potential to reshape a fast-evolving market they now dominate.
The tech titans will lock horns in a federal courtroom in San Jose, California, just miles from Apple's headquarters. The stakes are high, with Samsung facing potential U.S. sales bans of its Galaxy smartphones and tablet computers, and Apple in a pivotal test of its worldwide patent litigation strategy. Both sides are seeking financial damages from the other.
Samsung has rapidly overtaken Apple, creator of the iPhone and iPad, and Nokia to become the world's largest smartphone maker. Together, Apple and Samsung account for more than half of smartphone sales globally.
Apple sued Samsung last year in San Jose, claiming its smartphones and tablets slavishly copied the iPhone and iPad. The South Korean company countersued. Since then, the two have expanded their fight to courtrooms in nearly a dozen other countries.
At this trial, Apple is seeking at least $2.53 billion in damages, though U.S. District Judge Lucy Koh could triple that figure if she finds Samsung willfully infringed Apple's patents.
The dispute has reached deep into the tech sector, with companies including Microsoft Corp, IBM Corp, Nokia and Research in Motion Ltd filing court papers this week to try to keep their own patent licensing agreements from being disclosed during the trial.
A loss for Samsung could lead to permanent sales bans against products including the flagship Galaxy S III phone, said Nick Rodelli, a lawyer and adviser to institutional investors for CFRA Research in Maryland. While the S III is not at issue in the trial, if Apple prevails the company could later ask Koh to block sales of that product.
Upward of 20 percent of Samsung's global consolidated profit could be affected if it loses this case, he said.
"Samsung is a big company with operations all over the world, but this is actually a needle-mover for them on the bottom line," Rodelli said.
Apple will try to use Samsung documents to show its rival knowingly violated the iPhone maker's intellectual property rights, while Samsung argues Apple is trying to stifle competition to maintain "exorbitant" profit.
In a statement Friday, Samsung said Apple has been "free-riding" on its technology "while using excessive legal claims against our products in their attempt to limit consumer choice and discourage innovation."
An Apple spokesman reiterated the company's previous statement that it wasn't a coincidence Samsung's latest products looked a lot like the iPhone and iPad, and that Samsung blatantly copied its products.
A loss for Apple could be significant, not only if it were ordered to pay financial damages but also because of the competitive threats. That is because the Galaxy S III is a better phone than the latest iPhone 4S, said Michael Yoshikami, chief executive of Destination Wealth Management.
"Apple is all about slowing Samsung down," said Yoshikami, whose fund holds Apple shares. "Apple will try to buy time until iPhone 5 launches," which is expected in October.
Apple shipped 26 million iPhones in the quarter ended in June, fewer than in the previous quarter and well below the 28 million to 29 million that Wall Street had predicted.
Samsung is estimated to have increased sales to around 50 million smartphones. That helped the South Korean giant to report a record quarterly profit of $5.9 billion on Friday.
FINANCIAL DATA COMES TO LIGHT
In the past few days, the companies have supplied some detailed financial data in court filings, such as a disclosure on Thursday that Apple's gross margins for its iPads are about half of those for the iPhones. The information was included in newly unsealed papers and was not previously known, giving Wall Street a rare glimpse into Apple's financial breakdown for specific products.
The companies had initially sought to keep many documents from public view, but Judge Koh rejected the bulk of the requests on July 17. Her order came hours after Reuters filed court papers opposing the companies' efforts to seal the documents.
The lawyers on both sides are well known: Apple is represented by law firm Morrison & Foerster, which led Oracle Corp's patent case against Google Inc earlier this year over the Android operating system. Samsung, whose products run on Android, hired lawyers from Quinn Emanuel Urquhart & Sullivan, which also represents Google and which led Yahoo Inc's short-lived patent lawsuit against Facebook this year.
A 10-member jury will hear evidence over at least four weeks, and it must reach a unanimous decision for Apple or Samsung to prevail on any of their claims.
Apple says Samsung violated four of its design patents, which cover the look and feel of its products. It also says Samsung has infringed three patents for technology such as how the phone distinguishes between scroll and multi-touch gestures.
Meanwhile, Samsung says Apple violated patents on mobile communications systems, as well as features like taking a photo on a phone and seamlessly emailing it.
In a last-ditch attempt to avoid a trial, Apple Chief Executive Tim Cook and Samsung Vice Chairman Choi Gee-sung participated in a mediation on July 16. But a settlement prior to trial is unlikely, sources have told Reuters.
It has been tough going so far for Samsung in the case. Koh halted U.S. sales of the Galaxy Tab 10.1, giving Apple a significant early win. This was followed by a pretrial ban on the Galaxy Nexus phone. Samsung has appealed both orders.
The stakes for Apple are also high due to competitive threats from other Asian phone makers such as China's Huawei Technologies Co Ltd, Rodelli said.
"It's arguably the most commercially and doctrinally significant U.S. patent case in the modern era," he said.
The case in U.S. District Court, Northern District of California, is Apple Inc v. Samsung Electronics Co Ltd et al, 11-1846.

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Smartphones power record Samsung profit of $5.9 billion during Apple lull

Samsung Electronics Co, the world's top technology firm by revenue, reported on Friday a record operating profit of $5.9 billion for the June quarter, as rampant Galaxy S handset sales helped stretch its lead over Apple Inc.September quarter mobile profits are expected to forge further ahead as the latest Galaxy model enjoys a sales boom before the next iPhone launch, widely expected in October, driving Samsung's profit to a record of nearly 8 trillion won ($7 billion). The mobile business brings in around 60 percent of Samsung's earnings.
Profits of the handset division more than doubled from a year earlier and the flat-screen business swung to a profit as LCD prices stabilized.
Shares in Samsung, which also makes TVs and other appliances, flat-screens, and chips, jumped as much as 4.7 percent to a five-week high after the results, outperforming the wider market.
"Solid results from the TV division show its resilience to the euro zone crisis, while the mobile division has become a strong cash cow on the back of strong Galaxy sales," said Seo Won-seok, an analyst at Korea Investment & Securities.
"Weak memory chip prices remain the biggest concern for Samsung in the third quarter, but it will again fare better than rivals as its reliance on Apple, which tends to squeeze suppliers quite a bit, is small compared to the likes of Hynix and Toshiba. It'll have less margin pressure."
JK Shin, head of Samsung's telecoms business, told Reuters on Sunday that sales of the Galaxy S III, the most aggressive competitor to the iPhone, were better than his initial forecast of at least 10 million units in the first two months after its launch in late May.
It is also preparing a sequel to the popular phone-cum-tablet Galaxy Note later this year to counter Apple's new product releases.
Samsung, which earlier this year ended Nokia's 14-year reign as the top global handset maker, is estimated to have increased smartphone shipments to 50.5 million in the June quarter, nearly double the 26 million iPhones sold.
Apple shipments in the June quarter tumbled 26 percent sequentially as the European economy sagged and consumers held off on buying ahead of the release of the iPhone 5.
"Regardless of Apple's performance, Samsung will be strong in the third quarter," said Byun Han-joon, an analyst at KB Investment & Securities. "Actually, for Samsung, Apple's stumble is a chance."
Analysts estimated that Samsung, which now controls more than a third of the global smartphone market, will sell 15 million to 20 million of its Galaxy S III in the September quarter.
PATENT BATTLE
Samsung, valued at $160 billion and the world's leading maker of TVs, said April-June operating profit totaled 6.72 trillion won ($5.9 billion), in line with guidance it issued earlier this month.
That is up 79 percent from a year ago and 15 percent from the previous record - 5.85 trillion won in the March quarter.
Still, its net profit of 5.2 trillion won ($4.5 billion) is only half of the $8.8 billion Apple returned in the last quarter from its iPhone, iPad and Mac computer sales.
Samsung's gross margin of 37 percent also lags Apple's 43 percent.
The two technology giants, locked in bruising patent battle globally, will begin a jury trial in federal court in San Jose, California on Monday. Apple seeks roughly $2.5 billion in damages, plus permanent injunctions on some Samsung phones and tablets, while Samsung is demanding patent royalty payments.
Samsung said it expected its third quarter - July to September - to be marginally positive as demand for consumer electronic goods, including smartphones and tablets remains strong.
However, it said it expected weak demand for PC DRAM to continue in the third quarter.
Song Myung-sub, a senior analyst at HI Investment & Securities, said chip earnings might pull back slightly in the third quarter.
"But the increase in demand for its products from Microsoft Windows 8 release in September and the iPhone in October will bring demand higher than supply," Song said.
Profit from the telecoms division more than doubled to 4.19 trillion won from a year earlier 1.71 trillion won, with sales of 50.5 million smartphones - or 380 every minute.
Its semiconductor business showed a small decline in profit to 1.1 trillion won from 1.79 trillion won, following weak demand for NAND memory chips and computer memory chips.
Prices of NAND flash memory chips tumbled 46 percent in the first half of this year following a 34 percent plunge last year, forcing Toshiba Corp to cut output by 30 percent.
The flat screen division swung to a small profit of 750 billion won from a year earlier loss of 210 billion won after a global fall in LCD (liquid crystal display) prices stabilized.
The TV and home appliances business returned 760 billion won, up from 470 billion won. Analysts have said the business has been buoyed by solid sales of high-end TV models with 3D and Internet connectivity features.
While the next iPhone will likely slow Samsung's handset earnings growth, it will boost the Korean firm's semiconductor earnings as Samsung is the sole producer of processing chips used to power the iPhone and iPad, and also supplies Apple with mobile memory chips, NAND flash and display screens.


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Apple says Google told Samsung that the Galaxy Tab 10.1 looked too much like the iPad

The Apple vs Samsung patent-based U.S. case is set to start on July 30, but until then we already have various tidbits to show you from the cases each company will try to prove in court in this legal clash of the titans – and they surely have a complex relationship.
The two companies are fighting for market share and profits in the smartphone and tablet business, but they are also bound by a multi-billion dollar component supply partnership. Also important is the fact that they are facing each other off in more than 50 cases spread across 10 countries, and they’re all mobile-related.
Apple argues that Samsung Galaxy-branded smartphones and tablets are violating its iPhone and iPad patents and designs, while Samsung says that Apple is infringing with various iOS products its own 3G patents – which happen to be FRAND, or standard essential patents.
Apple has scored a few victories against Samsung in pre-trial rulings including a couple injunctions in the U.S. against the Galaxy Nexus and the Galaxy Tab 10.1 – albeit the Galaxy Nexus is still selling in the region after a second Samsung appeal succeeded to stay the initial decision, but also an adverse inference jury instruction. The company also won a few days ago a EU-wide injunction against Galaxy Tab 7.7 sales but also lost an injunction in the UK against the Galaxy Tab 10.1.
What’s worth remembering is that while all these verdicts came out in the last few weeks, Google decided to officially help Samsung in its fight against Apple, especially after the Galaxy Nexus sales ban was obtained in the U.S. by the iPhone maker.

But it turns out that Apple lawyers may also use Google against Samsung, at least according to Apple’s brief which mentions some Samsung interesting documents:

“Samsung’s documents show the similarity of Samsung’s products is no accident or, as Samsung would have it, a ‘natural evolution,’” Apple argues in its brief. “Rather, it results from Samsung’s deliberate plan to free-ride on the iPhone’s and iPad’s extraordinary success by copying their iconic designs and intuitive user interface. Apple will rely on Samsung’s own documents, which tell an unambiguous story.”

Apparently these documents reveal that the Search giant warned Samsung in the past that some of its Android products are too similar to the iPhone and iPad:

 In February 2010, Google told Samsung that Samsung’s “P1” and “P3” tablets (Galaxy Tab and Galaxy Tab 10.1) were “too similar” to the iPad and demanded “distinguishable design vis-à-vis the iPad for the P3.” In 2011, Samsung’s own Product Design Group noted that it is “regrettable” that the Galaxy S “looks similar” to older iPhone models. As part of a formal, Samsung-sponsored evaluation, famous designers warned Samsung that the Galaxy S “looked like it copied the iPhone too much,” and that “innovation is needed.” The designers explained that the appearance of the Galaxy S “[c]losely resembles the iPhone shape so as to have no distinguishable elements,” and “[a]ll you have to do is cover up the Samsung logo and it’s difficult to find anything different from the iPhone.”

These are all points that Apple will make in court, and we’re certainly interested what the jury will think.
This sort of evidence is all the more intriguing in this case as Judge Lucy Koh, who presides the U.S. case, famously asked Samsung counsel in one of the early U.S. face offs to recognize the Galaxy Tab from two tablets she was holding, one being an iPad. The lawyers were not able to identify the tablet of their client “from that distance” – or about 10 feet away – although they finally managed to provide the right answer.
We’ll be back with more news from this battle of giants in the near future.

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Apple U.S. margins for iPad about half of iPhone: filing

Apple Inc earned gross margins of 49 to 58 percent on its U.S. iPhone sales between April 2010 and the end of March 2012, while gross margins on the iPad were much lower during much of that period, according to a court filing.
The information was revealed on Thursday in a freshly unsealed statement from an Apple expert witness, filed in the company's patent battle against Samsung Electronics Co Ltd.
An Apple representative declined to comment on the court filing.
Between October 2010 and the end of March 2012, Apple had gross margins of 23 to 32 percent on its U.S. iPad sales, which generated revenue of more than $13 billion for Apple, the filing said. Apple does not typically disclose profit margins on individual products.
U.S. iPhone sales between April 2010 and the end of March 2012 generated revenue of more than $33 billion for Apple.
Apple and Samsung, the world's largest consumer electronics corporations, are waging legal war around the world, accusing each other of patent violations as they vie for supremacy in a fast-growing market for mobile devices.
A trial is scheduled to begin in federal court in San Jose, California, on Monday. Apple is seeking roughly $2.53 billion in damages, plus permanent injunctions on some Samsung phones and tablets.
The case in U.S. District Court, Northern District of California, is Apple Inc v. Samsung Electronics Co Ltd et al, 11-1846.
(Reporting By Dan Levine; Editing by Leslie Adler)

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Apple heads into choppy waters as new iPhone awaited

Apple Inc faces an unusual phenomenon when reporting earnings this time around: low expectations.
Few are expecting the world's most valuable technology company -- which surpasses Wall Street expectations with near regularity -- to deliver a bumper quarter once more on Tuesday.
The main reason: consumers holding out for the new iPhone.
Apple may still surprise market watchers, but many Wall Street analysts and investors remember how chatter over the launch of a new iPhone last year caused Apple to miss quarterly expectations in the fall, for the first time in years.
The iPhone 5 is only expected to hit store shelves around October -- just in time for the holidays -- with a thinner, larger screen and fine-tuned search features. Couple that pre-launch lull with slowdowns in Europe and China, Apple's biggest markets outside of North America, and sentiment on the Wall Street darling is more muted than many can remember in a while.
"No longer is Apple the company that beats every time," said Tim Lesko, portfolio manager at Granite Investment Advisors, which owns Apple stock. "I expect Apple to beat Apple's guidance, but I don't know whether they will beat Wall Street's guidance."
Tony Sacconaghi, analyst with Bernstein Research, sees a reasonable chance Apple will miss expectations on revenue, citing "macroeconomic weakness in China and Europe, a product cycle lull in the iPhone, a later than expected introduction of the new iPad into China, and the late quarter introduction of new Mac notebooks."
Any hiccup in demand for the best-selling smartphone can have a big impact on both revenue and profits as the five-year old device accounts for nearly 50 percent for Apple's revenues. And it comes at a time Samsung and other manufacturers that use rival Google Inc's Android software are chipping away at its market share.
Apple is expected to report fiscal third-quarter earnings of $10.35 a share on revenue of $37.2 billion, according to Thomson Reuters I/B/E/S.
Top Wall Street analysts are betting the numbers will undershoot that. Apple may miss the average sales forecast by about 0.2 percent, according to Thomson Reuters Starmine's SmartEstimates, which places greater emphasis on timely forecasts by top-rated analysts.
IPAD'S LAUNCH IN CHINA
But some analysts also think the Street is underestimating the impact of a late iPad launch in China, a focal point of intense expansion for the company and a huge driver of growth.
Apple began selling the tablet there on Friday, but many had expected it to ship last quarter.
Sales in China, Hong Kong and Taiwan jumped threefold to $7.9 billion in the second quarter, accounting for about 20 percent of Apple's $39.2 billion in total revenue.
The company typically introduces a new iPhone every year, but has yet to reveal any details on the next model.
However, people familiar with the situation have told Reuters the new iPhone will have a bigger display and that Apple has begun to place orders for the new displays from suppliers in South Korea and Japan.
Meanwhile, Apple's iPhone 4S is just three quarters old, which is relatively new by any standard. But many fans of the phone now see it as a cyclical product with somewhat predictable launch timeframes, preferring to wait a few months to buy the new model, analysts said.
Wall Street estimates Apple sold about 29 million iPhones, down from 35.1 million sold in the March quarter. Sales of the new iPad, expected to be 14 million to 15 million, is likely to offset part of the anticipated sequential drop in iPhones sales.
Apart from concerns about iPhone purchases, Wall Street is worried about the rising prominence of Google and Amazon.com in the mobile market, particularly with the launch of Google's smaller and cheaper Nexus 7 tablet, which is gaining popularity.
Still, no one is bearish in the longer term on the world's largest technology company by market value and most Apple watchers believe the company will make up any lost iPhone volume during the holiday season.
"Big picture, it doesn't matter," said Sterne Agee analyst Shaw Wu. "They are still the share gainer in the larger scheme of things. This is clearly a timing issue."
BIG HOLIDAY SEASON EYED
Wall Street expects that the outlook for this year's holiday season will be enormous for Apple as it may include the launch of a new iPhone as well as a potential new "mini iPad."
Apple has been working on a smaller tablet, a person familiar with the matter told Reuters.
It is unclear when Apple will launch such a tablet, but some clues are emerging on the timing of the new iPhone.
When Verizon -- one of the wireless carriers that work with Apple -- was asked on Thursday why customers have been holding back on handset upgrades, CFO Fran Shammo said: "There is always that rumor mill out there with a new phone coming out in the fourth quarter and so people may be waiting."
Investors will pick apart executives' comments for clues to new product introductions. While Apple has a policy of never giving advance details or timings on new products, Chief Financial Officer Peter Oppenheimer has often hinted of "product transition" in earnings conference calls preceding a launch.
Wall Street estimates Apple sold about 4 million Macintosh computers as the PC market saw growth sputter in the quarter.
The lackluster expectations do not appear to have affected Apple's stock, which is up nearly 50 percent so far in 2012. The stock has been choppy since a high of $644 in April. It closed Friday at $604.30 on the Nasdaq.
"Of all the quarters, this is the one that seems to have widest range of opinion," said Granite's Lesko.

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What's up dock? Apple to shrink connector for iPhone 5

 Apple Inc's new iPhone will drop the wide dock connector used in the company's gadgets for the best part of a decade in favor of a smaller one, a change likely to annoy the Apple faithful but which could be a boon for accessory makers.

The iPhone 5, Apple's next generation iPhone expected to go on sale around October, will come with a 19-pin connector port at the bottom instead of the proprietary 30-pin port "to make room for the earphone moving to the bottom", two sources familiar with the matter told Reuters.
That would mean the new phone would not connect with the myriad of accessories such as speakers and power chargers that form part of the ecosystem around iPods, iPads and iPhones, without an adaptor.
That means new business, analysts say.
"It represents an opportunity for accessory vendors," said Pete Cunningham, London-based analyst at technology research firm Canalys. "The iPhone connector has been a standard for a long time now and I would expect the same to be true for a new connector, should Apple change it as expected."
Apple did not immediately reply to an emailed request for comment.
Tech blogs have long speculated on the demise of the 30-pin connector, which at 21 mm wide takes up a chunk of space, especially as the latest technologies such as microUSB offer more power in less space.
They say that a smaller connector would give Apple more scope for new product designs or a bigger battery, or simply to make ever smaller products.
Switzerland's Logitech, one of the biggest makers of Apple speakers, declined to comment.
But some enterprising vendors in China have already begun offering cases for the new phone, complete with earphone socket on the bottom and a "guarantee" the dimensions are correct.
For some in the peripherals industry, the change could open doors to new business.
"iPod docking speaker sales have been declining for one or two years," said an employee of a Hong Kong-based company that designs speakers especially for Apple products.
"My previous factory is a lucky one. They shifted the focus to Bluetooth speakers, which proved a wise decision now," the employee said, speaking on condition of anonymity.
"It looks like while iPod speaker sales are going down, Bluetooth speaker sales are going up."
HAPPY TO UPGRADE?
Apple has already said that some users of older models of its Macbook computers won't be able to use the latest operating system to be announced soon, but analysts think it will be kinder to mobile gadget users.
"Apple needs to find a solution not to disappoint their current clients who want to upgrade to the new iPhone but are tied to an expensive accessory that have bought," said Franciso Jeronimo, London-based analyst at technology research firm IDC.
"I believe Apple will come up with some sort of adaptor so the new iPhone can be used with previous connectors."
It could be a difficult change for Apple to manage, even with an adaptor.
"With a smaller connector, what am I going to do with my loudspeaker at home and the fitness pack that I use when I go to the gym? That's the question," said 24-year old Travis Tam, who owns an iPhone 4 and works as an account executive at a social networking company in Hong Kong.
"I feel that the premium gap between the next iPhone 5 and newest Android models is getting much smaller these days. That will mean that details such as having a smaller connector will mean more in whether I will continue to use an iPhone and switch to other Android phones."
A salesman surnamed Chan at an Apple reseller in Hong Kong thought a smaller connector would be a "pain", and would spoil the clean lines and seamless connectivity that is Apple's trademark.
"There are ways around it as some of the speakers have an audio input point that can be connected directly to any iPhone with a earphone jack. It's not a very elegant way of doing things, but it's an alternative," he said.
In the end though, Apple fans are Apple fans.
"I don't think it will stop Apple consumers from buying the new gadgets," said C.K. Lu, Taipei-based analyst at research firm Gartner. "Many companies are interested in developing accessories for Apple because Apple users are more open and willing to buy accessories."

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Exclusive: Apple, Samsung chiefs disagree on patent values: source

 Apple Inc Chief Executive Tim Cook and top Samsung Electronic Co Ltd executives disagreed last week on the value of each other's patents at a settlement conference ahead of a high profile U.S. trial, according to a source familiar with the matter.
Apple and Samsung, the world's largest consumer electronics corporations, are waging legal war in several countries, accusing each other of patent violations as they vie for supremacy in the fast-growing market for mobile devices.
The trial is scheduled to begin July 30 in a San Jose, Calif. federal court. Cook participated in mediation with Samsung's Vice Chairman Choi Gee-sung and mobile chief Shin Jong-Kyun last Monday in the San Francisco area to see if the two sides could resolve the dispute, several separate sources said.
All sources could not be identified because they were not authorized to speak publicly.
The executives from Apple and Samsung participated as part of the court directed mediation process, these sources said. While a settlement is always possible, it is unlikely to come ahead of the California trial, they said.
Apple on Monday declined to comment on the case. A Samsung spokesman declined to provide details on any discussions, saying "this is an ongoing legal matter."
The U.S. case, taking place a few miles away from Apple's headquarters in Cupertino, California, is being closely-watched given the lucrative American smartphone and tablet market.
Among the major issues in dispute between Apple and Samsung is how to value so-called standard essential patents. These are patents which Samsung agreed to license to competitors on fair and reasonable terms, in exchange for having the technology be adopted as an industry standard.
Some judges are reluctant to issue injunctions over such patents.
Apple believes those patents should be valued lower due to those dynamics, one of the sources said. Additionally, Samsung believes it has a stronger patent portfolio than Apple when it comes to next-generation technology like 4G, the source said.
The mediation last week was at least the second between top executives. A previous session in May did not produce any settlements.
While both the companies are arch-rivals in the smartphone and tablet marketplace, the case is complicated by the fact that Apple is one of Samsung's largest component customers.
The trial will feature both utility and design patents. Apple utility patents in the case include those that cover how touch-screen devices discriminate between one finger on the screen, or more, and respond accordingly. Apple design patents include those that relate to the black front surface of a phone.


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Apple iPad Mini to Use “G/F2″ Thin Film Touch Technology

Here we go again with some fresh reports coming from Digitimes. This time around it’s about the rumored iPad Mini. To refresh your memory, said iPad Mini is supposed to have a smaller screen display, particularly measuring 7.85-inch. Now, Digitimes is reporting that aside from the size, the screen of the iPad Mini might be using “G/F2? thin-film touch technology.
Company named Nitto is said to be supplying the key thin-film materials and Nissha Printing and TPK will be producing the touch screens. Due to the thin-film requirement, previous touch module supplier of iPad, Wintek will not be supplying this time for the iPad Mini.

What will the G/F2 touch technology bring to the iPad Mini. For one, it will bring down the cost of the making the iPad Mini. It will also make the tablet thinner than the iPad and iPad 2 since it will be having one less layer of film.
Additionally, the iPad Mini will also be more transparent and will feature better sensitivity.
Finally, Digitimes also mentioned about the iPad Mini becoming available on Q4 and that Apple will be eyeing to ship 7-10 million units of the iPad Mini this year.


Source: View the original article here

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NYT reports that Apple is releasing the iPad Mini this year

You can now add the New York Times to the major news sources that we all follow and read who have somehow confirmed that Apple is indeed releasing the iPad Mini this year. In case you forgot, both the Wall Street Journal and Bloomberg have reported recently that Apple is planning to release a smaller version of the iPad. And so now, NYT adds one more confirmation to the rumors.
Should we start expecting Apple to make an announcement about the iPad Mini soon? Well, if you consider the reliability of these three news sources when it comes to verifying what is consider as rumors to be true, we might as well start getting excited over the “upcoming iPad Mini.”

According to the NYT:

“The company (referring to Apple) is developing a new tablet with a 7.85-inch screen that is likely to sell for significantly less than the latest $499 iPad, with its 9.7-inch display, according to several people with knowledge of the project who declined to be named discussing confidential plans. The product is expected to be announced this year.”

Of course, if there is some truth to all these rumors, we can all but attest to the fact that Google’s recent release of its own 7-inch tablet may have prompted Apple to purse with the iPad Mini. The Nexus 7 tablet is said to be selling hotcakes as of today. But the question here is whether Apple can match up against the SRP of the Nexus 7 when it comes to pricing its own iPad Mini? The 8GB Nexus 7 retails for $199.
As always, we will have more information about the iPad Mini as these becomes available.

Source: View the original article here

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Apple releases new iPad Smart Case, now covers the back panel as well

Amidst the plethora of information about iOS6 and new line of MacBook machines announced today by Apple, something just went live on the Apple Store as well. And since it has something to do with the iPad, we might as well mention what it is about. Nothing biggie here. Just our old trusted Apple Smart Case getting a new version.

Available now from the Apple Store, the new iPad Smart Case now offers full support for the iPad. Whereas the previous iPad Smart Cover only protects the screen of your iPad, the new one will now fully protect both the back and front. The back part of the case is made of polyurethan hardshell coating that will surely provide ample protection from accidental bumps and drops.
The new iPad smart case is available for $50 and will fit both the 2nd-gen and 3rd-gen iPads. It will also be available in six different color options and Apple will also accept personal engraving to the case.
So if you’re getting the new iPad just now, you might as well spare a few more bucks and snag the new Smart Cover as well.

Source: View the original article here

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Production of iPad Mini to start in September in Brazil

Here we have the latest rumors about Apple’s next exciting product, the iPad Mini. Citing reliable sources from China, Japanese site Makotakara is reporting that the iPad mini will be manufactured in Brazil, and that its production is scheduled for ramping up starting in September. Additionally, production test of this new iPad was said to have been done already in China.
Pretty exciting, right? But the most important information leaked out by the mentioned site is the fact that the iPad Mini is said to be shipping out until the Holiday season. So, if there was any truth to this rumors, then there’s no harm in saving up for the iPad Mini. You still have a few more months to do so.

And to add some more excitement to your anticipation, let us just add another exciting information about the iPad Mini, according to rumors, the smaller version of the iPad will have a 3G capability. The report also added that the source of the rumors has seen the prototype of this iPad mini. It will be thinner than the its rival, the Kindle Fire. In fact, the iPad Mini is going to be thinner than the latest model of the iPod Touch.
It seems like the Bloomberg’s report saying that Apple is going to launch the new smaller iPad Mini in October. This means that Apple’s manufacturers will have to ramp up their production of the iPad Mini as quickly as possible.
All that said, are you planning to get a smaller version of the iPad if it becomes available sometime in October?

Source: View the original article here

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Bloomberg reports – Apple planning to release a smaller iPad soon

With all the rumors about Apple’s next plan for the iPad, one that is so hot right now is that Apple might soon be introducing the iPad mini or at least a new iPad with smaller screen size than the current 9.7-inch models. Interestingly, a new report was published by reputable news agency, Bloomberg saying that Apple is indeed planning to release a new iPad with a screen size somewhere between 7-8 inches diagonally. This report has to come right weeks after Google announced its own tablet – the Nexus 7.
Sounds interesting? Indeed, because the report came from Bloomberg. According to Bloomberg, Apple may announce the product in October. Another interesting information furnished through the report is the fact that the said iPad Mini will not have the same high-definition screen as the current iPad. If this is indeed true, then obviously Apple is gunning for the Google Nexus 7.

Actually, Apple is hitting two birds with one stone or should we one new iPad here. The iPad Mini may go up not only against Google’s Nexus 7 tablet but also against Microsoft’s Surface tablet announced also recently. Of course there’s also the Amazon Kindle Fire which like the Nexus 7 tablet is also sporting a 7-inch display. Amazon is even reported to be preparing to launch the Kindle Fire 2 very soon.
Now, here’s the thing. If Apple pushes through with the iPad Mini, it will certainly give all the other tablets coming out soon a stiff competitor. Apple after all currently holds the majority of the tablet market, thanks to its iPad product line. Apple has dominated the tablet market since the first iPad was launched.
So, it looks like the battle plan of the participants in the next wave of the tablet wars is to make the smallest, most portable and highly functional mini tablet. Which side are going to be on?
No related posts.

Source: View the original article here

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Apple predicted to release a 7.85-inch iPad come October

If there’s one effect of Google’s recent introduction of the Nexus 7 tablet it has to be the many speculations on whether Apple will follow suit and release a mini-version of the iPad. In fact, an analyst from Pacific Crest, Andy Hargreaves has predicted that Apple will introduce a new iPad in October. Mr. Hargreaves seem so sure that he even predicted the exact measurement of this new iPad – it’s going to be 7.85-inches.
Additionally, Mr. Hargreaves also predicted that the said 7.85-inch iPad will have 8GB of NAND capacity and will be priced around $299. Still a few hundreds more expensive than Google Nexus 7. He goes on to say that he estimates Apple to sell 10 million units of the 7.85-inch iPad by the end of 2012 and 35.2 million units in 2013.

As to their basis for the prediction, the analyst said that it was based on their estimated component order volume of Apple and that this estimate is well within Apple’s production capacity. The group’s prediction has increased from their previous estimate of 65.2 million unit to be sold by Apple in FQ2013. This is attributed to the cannibalization of the bigger iPad. Meaning that for every iPad 7.85 produced, one of the bigger iPad is reduced. Hence, the reason for their estimated sales figures.
Finally, Hargreaves also suggested that Apple might also stop producing the iPad 2 with a $399 price to give way for a new iPad Mini with 16GB capacity to be sold at the same price. Additionally, he also predicted that Apple will release a new iPad with lighter battery and oxide TFT screen.


Source: View the original article here

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iOS 6 coming to iPad this fall with new features but will not support the original iPad

Apple today has announced the latest version of its operating systems for the iPad (iPhone and iPod Touch), the iOS6. Available this fall, iOS6 promises to bring in more great features that will extend the capabilities of the iPad 2 and of course the new iPad (or iPad 3).iOS6 will be available as a free software update.
Among the many new features of iOS6, Apple is topbilling this with the all new Maps app which includes Apple-designed cartography, turn-by-turn navigation and Flyover view. The all new Maps app for iPad employs vector-based map elements that make graphics and text smooth, and panning, tilting and zooming incredibly fluid. It will have a new turn-by-turn navigation that will guide you to your destination with spoken directions. Plus the Flyover view will have photo-realistic interactive 3D views. Other features of the new iPad map apps include – real-time traffic information, and local search information for more than 100 million businesses with info cards with Yelp ratings, reviews and deals and photos.

Another exciting new feature that iOS6 will bring to the iPad is the much-hyped SIRI. SIRI on iOS6 on your iPad will support more languages including Spanish, Italian, Korean, Mandarin and Cantonese. It will also be optimized for use in 15 countries. But more importantly, with SIRI on your iPad, you can now ask for the latest sports score, make restaurant reservations, update your Facebook status, post to Twitter or launch app. It also has the new Eyes Free mode which enables you to use your iPad using your voice.
Other features of iOS6 for iPad include the following:
built-in Facebook integrationshared photo streamsPassbook appenhanced Safari mobile web browserFacetime over cellular networksVIP Mailbox

Source: View the original article here

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Apple scores major iOS graphical user interface patent, potential weapon against Android

Filed in early 2007, U.S. Patent No. 8,223,134 was granted to Apple yesterday, among other patents awarded to the company by the United States Patent and Trademark Office. And from the looks of it, the company may have received a very important weapon that it could soon use in its “thermonuclear war” against Google’s Android.
The patent describes a “portable electronic device, method, and graphical user interface for displaying electronic lists and documents,” and we could see it included in a variety of patent-based legal clashes in which Apple is either suing or being sued by an Android device maker – and the company is fighting the most important ones, Samsung, HTC and Google-Motorola.
Why is this patent so important for iOS and Android? Well, basically USPTO acknowledged Apple’s innovation when it comes to smartphones being able to display documents and other elements on the screen and allow the user to interact with them.
The iPhone was not the first smartphone to feature a touchscreen-only display, but it was the smartphone that reinvented the mobile business. Everyone making smartphones today adopted that model, and while you will argue that your favorite platform is the best, the fact remains that essentially, they’re all pretty similar. No matter what smartphone you’d buy today you’d end up with a spacious touchscreen display and a friendly user interface ready to help you browse the web, check email, run apps or perform work-related stuff. And it’s a lot easier to work on such devices than on pre-iPhone smartphones. Very few of them also offer physical keyboards, but the keyboards are not as important as they were in the pre-iPhone era. Not to mention that the companies that failed to adapt to this new smartphone fashion either faded away or may soon disappear – the lists includes Palm, RIM and Nokia, although the last two still have what it takes to come back on top.

This newly obtained patent describes a variety of user interface elements and the way users would interact with them, or better said, the patent pretty much describes the current smartphone experience that we get to take advantage of no matter what mobile platform we may temporarily favor:

Some portable communication devices (e.g., mobile telephones, sometimes called mobile phones, cell phones, cellular telephones, and the like) have resorted to adding more pushbuttons, increasing the density of push buttons, overloading the functions of pushbuttons, or using complex menu systems to allow a user to access, store and manipulate data. These conventional user interfaces often result in complicated key sequences and menu hierarchies that must be memorized by the user. […]

The above deficiencies and other problems associated with user interfaces for portable devices are reduced or eliminated by the disclosed portable multifunction device. In some embodiments, the device has a touch-sensitive display (also known as a “touch screen”) with a graphical user interface (GUI), one or more processors, memory and one or more modules, programs or sets of instructions stored in the memory for performing multiple functions. In some embodiments, the user interacts with the GUI primarily through finger contacts and gestures on the touch-sensitive display. In some embodiments, the functions may include telephoning, video conferencing, e-mailing, instant messaging, blogging, digital photographing, digital videoing, web browsing, digital music playing, and/or digital video playing. Instructions for performing these functions may be included in a computer program product configured for execution by one or more processors.

What will Apple do next with this ‘134 patent? We’ll just have to wait and see in what lawsuits the new patent will be used.

Source: View the original article here

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Judge: Apple Must Publicly Admit Samsung Didn’t Copy The iPad

While Apple’s been having some limited success with its patent-related claims against Samsung Androids in the US, the situation isn’t so rosy everywhere. In the UK, for instance, Apple recently lost a ruling against Samsung in which it had accused the company of infringing upon its design trademarks for the iPad. That decision itself is a setback for Apple, but the judge’s orders for how Apple must react to the ruling really push things over the top, with Apple required to post a message which publicly clears Samsung of any accusations that it copied the iPad’s design.
Apple will have to keep that notice up on its UK web site for six month’s time. In addition, the company is being forced to run ads in multiple newspapers and magazines containing the same message of Samsung’s innocence.
The judge behind this order is one you might remember from when news of Apple’s loss first broke, as he then called Samsung’s tablets “not as cool” as Apple’s design. Instead of a jab at Samsung, it came off more as an admonishment of Apple for suggesting that consumers would really confuse the products.
Samsung seems quite pleased by this development, accusing Apple of having made “excessive legal claims based on such generic designs”. Apple has yet to make a public statement.

Source: View the original article here

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Google updates Nexus 7 shipping timeframes for US, UK, Canada, and Australia

Here at Android Authority, we’ve talked a lot about the Google Nexus 7 tablet since its official unveiling at Google I/O in late June (in fact, we also talked about it before its unveiling as well).
We’ve pitched it against the Amazon Kindle Fire, its main competitor at the present, as well as against what rumors paint to be its future competitors (namely the Amazon Kindle Fire 2 and the Apple iPad Mini). But although we’ve deemed the Nexus 7 to be the best Android device you can purchase for $200, it looks like those interested to purchase have had numerous problems with actually getting the device in their (geeky) hands. Fortunately, Google has stepped up and clarified all availability questions in a post on the official Play website.
As a quick sum up before going into specifics for each country where the Nexus 7 is available for purchase, Google seems to have solved its availability issues. From the looks of it, all orders made next month should start shipping right away, or at least we can hope they will. In addition, Google mentions that when your order ships, you’ll receive a Google Play notification along with a tracking number for you shipment.

Nexus 7 US shipping timeframes

All US orders for a standalone 8GB Nexus 7 (meaning orders for the tablet without any accessories) have been shipped. In fact, the 8GB model now being listed as being “in stock” and future orders should be shipped immediately.
Those who have ordered a standalone 16GB Nexus 7 before July 11 should receive their shipment by the end of July 19. If you ordered starting with July 12, you should get your tablet by the end of next week.
Google also mentions that if you ordered a tablet with an accessory, the tablet will arrive first, with “the rest of your order on its way soon”.

 

Nexus 7 UK shipping timeframes

 
If you ordered a 8GB Nexus 7 from the UK, you’ll be glad to know that all Nexus 7 8GB orders should ship by July 20.


If you ordered a 16GB Nexus 7 before June 30, the device will also ship by July 20, with the remaining 16GB Nexus 7 orders poised to ship next week.

 

Nexus 7 Canada shipping timeframes

All Canadian-bound orders for the 8GB Nexus 7 have been shipped.
Orders for the 16GB model of the Google Nexus 7 should ship in 1-2 weeks.

 

Australia Nexus 7 shipping timeframes

Orders for both the 8GB and the 16GB variants of the Nexus 7 will be processed by the end of July 19 and should arrive in 3-5 days.

Source: View the original article here

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