
Monday November 23, 2009 01:04 PM
BusinessWeek reports that Apple is stepping into the Verizon-AT&T spat with two new ads to be released tonight touting the iPhone's ability to handle voice and data connections simultaneously via 3G. That ability has been featured as one of AT&T's talking points to differentiate itself from Verizon's 3G network in an attempt to counter Verizon's ads attacking AT&T's 3G network coverage.
The ads can't help but be viewed against the backdrop of the fight between Verizon Wireless and Apple's partner AT&T, the one that's spawned a lawsuit for Verizon's "There's A Map For That" TV spots. Here we see Apple doing its part as both a good AT&T partner, and touting a great feature of the iPhone all at once.
AT&T filed suit earlier this month over what it calls "blatantly false and misleading" advertising messages from Verizon, but Verizon quickly refuted the charges, noting pithily that "the truth hurts." A federal judge has denied AT&T's request for a temporary restraining order preventing Verizon's ads from being shown, but the full case will proceed beginning December 16th.[ 83 comments ]
Monday November 23, 2009 11:41 AM
Fortune reports on comments last Friday from Broadpoint AmTech analyst Brian Marshall that have been receiving a fair amount of attention today. The primary item of interest has been Marshall's claim that AT&T's exclusive agreement to distribute the iPhone in the U.S. will expire in June 2010, opening the door for other carriers to begin offering the device. Marshall's comments specifically point to Verizon as a carrier with which Apple would likely look to partner, with rumors of revised iPhone hardware capable of running on Verizon's network suggesting that a late 2010 launch could be possible.
AT&T's exclusivity window has been the subject of much discussion since the iPhone's introduction in mid-2007, with initial reports of the window extending until 2012. Other reports have claimed that the original exclusivity agreement had extended only 2009 but had subsequently been extended until 2010 as part of negotiations surrounding handset subsidies from AT&T. More recently, AT&T has been said to be seeking a further extension of exclusivity into 2011.
One of the questions raised in the move from exclusive to non-exclusive distribution models has been the effect on subsidies paid to Apple by wireless carriers such as AT&T. Marshall pegs the current subsidy paid by AT&T at approximately $450, and includes a shift to a "conservative" subsidy of $300 once other U.S. carriers come onboard. The drop in subsidy, however, would be much more than offset by increased sales volume under a multiple-carrier arrangement, according to Marshall. For its part, Apple has stated several times over the past six weeks that it has in fact been able to maintain subsidy levels in formerly-exclusive markets that have recently expanded to include multiple carriers.
The full video of Marshall's interview on Bloomberg Television is available online.
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Monday November 23, 2009 11:12 AM
Boy Genius Report posts a supposed leak of Apple's forthcoming Black Friday sale items. Among the discounted items are iMacs ($101 off), MacBook Pros ($51-$101 off), iPod nanos ($11 off), and iPod touches ($21-$41 off). Also included are the Apple TV, AirPort products, Magic Mouse, iWork, and several other Apple and third-party accessories.

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Monday November 23, 2009 09:21 AM
BBC reports that a third worm has been discovered that attacks certain jailbroken iPhones. The malicious software was discovered by security company F-Secure but appears to be isolated and specific to the Netherlands.
It is specifically targeting people in the Netherlands who are using their iPhones for internet banking with Dutch online bank ING. It redirects the bank's customers to a lookalike site with a log-in screen.
F-Secure estimates the number of affected phones to be only in the "hundreds" at this point, though it could theoretically spread. The worm appears to exploit the same users as the harmless Australian worm which displayed a photograph of popsinger Rick Astley. A second worm operating using the same mechanism was found just days later to be capable of accessing personal information. Only individuals who had specifically jailbroken their iPhones, installed SSH and not changed the default password seem to have the potential to be affected.When active on an iPhone, the iBotnet worm changes the root password for the device, in order to prevent users from later changing that password themselves. It then connects to a server in Lithuania, from which it downloads new files and data, and to which it sends data recovered from the infected iPhone. The worm sends both network information about the iPhone and SMSs to the remote server. It is capable of downloading data, including executables that it uses to run and carry out its actions, as well as new files, providing botnet capabilities to infected devices
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Monday November 23, 2009 05:29 AM
Despite the massive success of the App Store, the actual app approval process has been a constant source of criticism for Apple. A couple of well known developers have recently quit from developing iPhone apps altogether due to the process. Businessweek recently interviewed Apple's senior vice-president of worldwide product marketing Phil Schiller who predictably defends the process:
"We've built a store for the most part that people can trust," he says. "You and your family and friends can download applications from the store, and for the most part they do what you'd expect, and they get onto your phone, and you get billed appropriately, and it all just works."
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