MacRumors

With its prominent position in the smartphone and tablet markets, it's no surprise that Apple is a popular target in its competitors advertising as they seek to differentiate themselves from Apple even as they ride on the popularity of the company's brand and products. Samsung has been one of the most prominent users of this tactic lately with its series of ads showing Apple fans waiting in line for the next new product launch only to be wowed by the latest Samsung product being used by a passerby.

Back in 2010, Amazon took on the iPad with a Kindle ad touting its E Ink capabilities that provide superior viewing in direct sunlight. Amazon has now revived the original concept addressing readability in bright sunlight but augmenting it by promoting the Kindle's significantly lower pricing. The ad notes that customers can buy three Kindles for less than the price of an iPad, allowing everyone in the family to have their own device.

Man: Hey, excuse me. That's the new Kindle, isn't it? $79.

Woman: Best way to read, even in sunlight.

Man: Yeah, but I mean if you want to watch movies, or surf the Web...

Woman: I've got a Kindle Fire for that.

Man: Three Kindles. That's got to be expensive.

Woman: Not really. Together they're still less than that. (nods at man's iPad)

With the Kindle Fire priced at $199 and the basic ad-supported Kindle priced at $79, two Kindle Fires and a Kindle would cost a total of $477, below the iPad's $499 entry-level price. Apple has been rumored to be planning to continue offering the iPad 2 as a lower-cost option once the company introduces the iPad 3 early next month, but Apple almost certainly will not match or come close to the Kindle Fire's pricing given the significant differences between the two devices.

The flurry of iPad 3 part leaks continues today following yesterday's interior photo of the rear shell and some follow-up photos of the exterior of the shell and the Smart Cover magnets. Among the most prominent additions today are new photos of what may be the iPad 3's display.

Japanese blog Mac Otakara points to a posting by repair firm iLab Factory showing a 9.7-inch LCD panel from Sharp that is said to be a 2048x1536 high-resolution display set for inclusion in the iPad 3. The panel shows three ribbon cables connecting the display to its circuit board, in line with a previously-leaked photo of a claimed iPad 3 panel. The iPad 2 panel only utilizes two ribbon cables, with the additional cable on the new panel thought to be required to support its higher resolution.

A few other minor components as well as additional photos of previously-seen parts have also surfaced today, with galleries having been put together by Cult of Mac and 9to5Mac.

Apple is reportedly set to introduce the iPad 3 during the first week of March, with the first round of launches following shortly thereafter.

As noted by Gawker, the FBI has just released a 1991 background check on Steve Jobs. The 191-page document was undertaken as Jobs was being considered for a presidential appointment to the President's Export Council by George H. W. Bush. The file was released following a Freedom of Information Act request filed through the open government site MuckRock.

Beyond basic biographical information, the report makes reference to comments from a number of Jobs' acquaintances who were interviewed to help build a picture of his background. Gawker notes that the report contains an unusually high number of "derogatory" comments, with some questioning his honesty and making reference to his ability to "twist the truth and distort reality in order to achieve his goals".

More details will undoubtedly come to light as readers are able to make their way through the lengthy document, and while certain aspects of the report have been censored out, it may still reveal an interestingly candid glimpse into how Jobs was viewed by his acquaintances and investigators seeking an impartial view of his suitably to serve on a presidential commission.

AllThingsD, which has an accurate track record in revealing Apple's new product media events, is reporting that Apple will hold an event to launch the iPad 3 in the first week of March.

Sources say the company has chosen the first week in March to debut the successor to the iPad 2, and will do so at one of its trademark special events. The event will be held in San Francisco, presumably at the Yerba Buena Center for the Arts, Apple’s preferred location for big announcements like these. No word yet on a street date for the iPad 3 (assuming that’s what it’s called), though my guess is retail availability will follow roughly the same schedule as that of the iPad 2: Available for purchase a week or so after the event.

The report's sources also corroborate some of the basic rumors surrounding the device, claiming that it will feature a "much faster chip", improved graphics capabilities, and a high-resolution display.

Last year, Apple introduced the iPad 2 with a media event on March 2, following that up with the first round of launches on March 11.

Update: As he frequently does, the reliable Jim Dalrymple at The Loop corroborates AllThingsD's claim with a simple "Yep."

Apparently, iPad 3 enclosures are easy to come by these days. Earlier today, Repair Labs posted a photo of the interior the iPad 3 rear shell. They concluded that there were some minor changes that suggested a larger battery and redesigned logic board.

Tonight, Apple.pro posts an image of the back of the same shell, showing it to look quite simliar to the current iPad 2 backing, though the camera appears closer to the edge. There's no markings on the enclosure, however. No "iPad" or serial number markings.

The site also claims to have a photo of the Smart Cover magnets, suggesting the iPad 3 will share the same Smart Cover as the iPad 2. iFixit has a magnet teardown of the iPad 2 which shows a similar magnet configuration.

One of Foxconn's servers was reportedly hacked, exposing usernames and passwords for clients and employees. The group that took credit for the hack is called SwaggSec who claims they weren't doing it in response to working conditions or even for information on the iPhone 5, but simply for the enjoyment of it.

We encourage media, security experts, and other interested individuals to explore our leaks. Foxconn did have an appropriate firewall, but fortunately to our intent, we were able to bypass it almost flawlessly. Of course with funding ourselves we did have our limitations. But with several hacking techniques employed, and a couple of days in time, we were able to dump most of everything of significance.

9to5Mac was able to "verify these logins worked", though the servers have now been disabled by Foxconn and logins no longer valid. The original exploit was reportedly through an unpatched Internet Explorer vulnerability from a worker inside Foxconn.

According to the original posting the logins and passwords could allow individuals to make orders under company accounts such as Apple, IBM, Microsoft and Intel.

Foxconn is the manufacturing partner for Apple and dozens of other major U.S. companies. Apple's relationship with Foxconn has been under fire recently for the working conditions in their factories.

TuneCore president Jeff Price today wrote a blog post praising Apple's iTunes Match service for creating money "out of thin air" for copyright holders. iTunes Match launched with all the major record labels on board, but some small labels refused to participate over concerns the service was legitimizing music pirates.

Price disagrees:

A person has a song on her computer hard drive. She clicks on the song and plays it. No one is getting paid. The same person pays iTunes $25 for iMatch. She now clicks on the same song and plays it through her iMatch service. Copyright holders get paid.

Price tells MacRumors that Apple keeps 30% of iTunes Match revenues for itself -- the same percentage the company keeps from the iTunes and App Stores. The remaining 70% is divided, with 88% going to record labels and 12% going to songwriters. The royalties are split amongst artists based on "how many times someone accesses your song" via iTunes Match and it doesn't matter if a song is matched or uploaded -- the royalty is paid either way.

Price and other record industry execs are thrilled with the iTunes Match service, and by extension, Apple. Not only are artists finally getting paid something for pirated music, but for legitimate song purchases they are getting paid twice. If a listener purchases a CD, rips it to their computer, and then uploads it to iTunes Match, the record company books revenue for both the purchase and the small cut they receive from iTunes Match.

Regarding other music services, Price says, Pandora or Spotify customers are "paying a fee to listen to Spotify's music collection." iTunes Match customers are "paying a fee to have access to [their] own music collection."

RepairLabs reports that it has received a photo of what is claimed to the inside of the rear shell of the iPad 3, comparing the part to the corresponding version found on the iPad 2. The iPad 3 version demonstrates a few minor changes compared to the iPad 2, with one of the most notable being an apparently narrower logic board that could make room for an expanded battery.

A. You can see here that the mounts for the logic board are very different, which means the logic board shape will be different allowing for . . . .

B. More battery. The width of where the logic board sits on the iPad 2 appears much larger than that of the iPad 3. We have long heard that the iPad 3 was going to provide longer battery life, and this back housing seems to support that.

The report also points out slight differences to the locations where the iPad's rear camera and LCD display mount to the rear casing. While those changes obviously do not offer any evidence of enhancements for the components themselves, they do suggest that Apple has at least tweaked their designs from the current iPad.

The photo does not show the backside of the rear shell that would be visible on the assembled device, nor does it show an edge view that would allow for a thickness comparison to the iPad 2. The photo's source does claim, however, that there is no apparent difference in thickness between the two rear shells.

Rumors have disagreed on whether the iPad 3 will thicker, thinner, or the same thickness as the iPad 2, with some suggesting that the final result depends on what type of display technology and backlight system Apple has settled on for the device. The iPad 3 is said to be gaining a high-resolution "Retina" display that could require new solutions for powering and lighting the the screen.

Other rumors have claimed that the device will run utilize a quad-core processor on Apple's next-generation "A6" system-on-a-chip and that support for LTE cellular connectivity will be included on some models.

Tech in Asia reports on an article [Google translation] from Chinese information technology website DoNews claiming that Apple is preparing to bring support for the Chinese language to Siri on the iPhone 4S next month. According to the report, Apple is also preparing to launch support for Japanese and Russian, but the initial Chinese support will only include Mandarin, with Cantonese and other dialects being left out for the time being.

The Chinese tech site DoNews claims to have heard from an Apple engineer who’s working on the Chinese-language version of Siri, the clever voice assistant on the iPhone 4S. From this source it claims that Siri will launch in Chinese next month, and is already undergoing internal testing this month. [...]

The rumor also contends that the Chinese version will only support the standard Mandarin (aka: putonghua) Chinese, which would leave out Cantonese-speaking people, as well as some Taiwan folk who effectively speak in a different dialect. Plus, it alleges that Japanese and Russian will arrive next month as well.

Siri currently supports only English (United States, United Kingdom and Australia), French, and German but in Apple's Siri FAQ the company promise support for additional languages, including Japanese, Chinese, Korean, Italian, and Spanish, this year.

Chinese support for Siri is likely a high priority for Apple, given the strong growth the company is experiencing in the country. The iPhone 4S launched on partner carrier China Unicom last month and rumors are swirling that it may debut on China Telecom in the very near future.

Japan is another key market for Apple, with the company having enjoyed long-standing popularity with users and where the iPhone 4S debuted as part of the first round of launches in mid-October. Apple has placed less emphasis on Russia, but along with Brazil, India, and China the country is considered to have one of the world's up-and-coming economies where Apple would certainly like gain momentum. The iPhone 4S launched there in mid-December.

Dow Jones Newswires reports that Apple filed a letter with the European Telecommunications Standards Institute (ETSI) last November pushing for clarification on how standards-essential patents are intended to be licensed. These standards-essential patents are currently required to be licensed under fair, reasonable and non-discriminatory (FRAND) terms in order to promote competition in the marketplace, but Apple claims that there is too much confusion in the industry about how such licensing should be handled.

Apple said in its letter--which was dated Nov. 11, but not previously disclosed--that the lack of clarity on what is fair, reasonable and nondiscriminatory has led many companies to ask unusually high rates and sue one another claiming they infringed on one another's patents.

"It is apparent that our industry suffers from a lack of consistent adherence to Frand principles in the cellular standards arena," wrote Bruce Watrous, Apple's intellectual property head.

Apple has requested that the ETSI set "appropriate" royalty rates for FRAND patents in the wireless industry in order to help companies compete on a relatively even field with a clearer understanding of the costs involved in competing in the market. The company has also requested that FRAND patents not be used as the basis for requests for injunctions that would remove products from the market, given that those patents are intended to be licensed and that any negotiation roadblocks are related to the details of that licensing.

Apple certainly has a vested interest in seeing simplified FRAND patent licensing terms, given that it was a relatively late entrant into the mobile phone industry where the vast majority of patents covering the basic technologies are owned by other companies. While Apple has primarily relied on claims of design infringement and specific user interface functionalities in its efforts to block smartphone sales by its competitors, it has been the target of lawsuits based on more fundamental inventions.

In one example, Apple briefly pulled all of its 3G-capable iOS devices with the exception of the iPhone 4S from its German online store last week in the wake of a victory by Motorola Mobility in the ongoing patent dispute between the two companies.

That injunction was quickly suspended pending Apple's appeal of the ruling, with Apple arguing that the patents in question are subject to FRAND licensing requirements that are not being met by Motorola. Apple claims that Motorola has "demanded" a royalty rate of 2.5% to license the patent, a figure that would have resulted in Motorola receiving roughly $1 billion from Apple in 2011.

Sprint today became the last of the three major U.S. iPhone carriers to report earnings for the fourth quarter of 2011, disclosing that it sold a total of 1.8 million iPhones during the quarter. While well below the 7.6 million activations reported by AT&T and the 4.3 million activations reported by Verizon, Sprint's iPhone surge helped it achieve a new record high subscriber base of 55 million customers.

Notably, 40% of Sprint's iPhone purchasers were new to the carrier, highlighting the device's ability to attract customers from other carriers. That percentage is on par with AT&T's reporting during its early quarters of iPhone availability, although that number has tapered off for AT&T over time as those who wanted to switch made the move and new carriers such as Verizon and now Sprint have leveled the playing field somewhat.

While Sprint was undoubtedly pleased with the impact of the iPhone on subscriber numbers, it did have a short-term impact on Sprint's earnings with margins being eroded by the upfront subsidies the carrier paid to Apple for the devices. Sprint's total subsidy payments increased roughly 40% year-over-year and sequentially, hitting $1.7 billion.

Between the iPhone launch and Sprint's "Network Vision" initiative to consolidate and simplify its network technology as it moves to 4G LTE, the carrier's operating income margin was sliced nearly in half, leading to a net loss of $1.3 billion for the carrier. That performance did, however, beat Wall Street expectations by a small amount, and the carrier views the short-term hit to profitability in attracting iPhone customers to be an investment in the carrier's future. Sprint's strategy in negotiating to land the iPhone did indeed involve an effort to "bet the company" on the iconic device as Sprint struggled to keep up with AT&T and Verizon.