MacRumors

Apple today posted iOS 4.2.6 for the Verizon iPhone (iPhone3,3) to its site, preparing the way for users who will be receiving the phone in the next few weeks. The version checks in as Build 8E200.

The Verizon iPhone carried iOS 4.2.5 when it was demoed at the media event introducing the device earlier this month, so it appears that Apple has made some additional tweaks since that time.

- Direct link to iOS 4.2.6 for Verizon iPhone

No other iPhone or iPod touch models have received updated iOS versions with today's update.

Intel today announced that it has discovered a "design error" in its "Cougar Point" support chip that is part of its implementation of the Sandy Bridge architecture for desktop machines, chipsets that are expected to make their way into the next-generation iMac.

As part of ongoing quality assurance, Intel Corporation has discovered a design issue in a recently released support chip, the Intel 6 Series, code-named Cougar Point, and has implemented a silicon fix. In some cases, the Serial-ATA (SATA) ports within the chipsets may degrade over time, potentially impacting the performance or functionality of SATA-linked devices such as hard disk drives and DVD-drives. The chipset is utilized in PCs with Intel's latest Second Generation Intel Core processors, code-named Sandy Bridge. Intel has stopped shipment of the affected support chip from its factories. Intel has corrected the design issue, and has begun manufacturing a new version of the support chip which will resolve the issue. The Sandy Bridge microprocessor is unaffected and no other products are affected by this issue.

The issue, which affects systems utilizing Intel's second-generation quad-core Core i5 and i7 processors, has pushed back production to a projected late February date for the first shipments and an April date for full recovery. Intel is estimating the entire cost of repair and replacements associated with the issue to be around $700 million.

Apple's current 27-inch iMac utilizes the first-generation versions of these Core i5 and i7 processors in high-end configurations, and the company is expected to adopt some of these second-generation versions in an update to the line. The iMac was last updated in late July and is approaching the end of its usual update cycle. The issue cited by Intel in today's release does not affect notebook chipsets such as those expected to be used in a Sandy Bridge update to Apple's MacBook Pro line, which is also due for an update.

Update: While initial reports had suggested that the issue is limited to desktop versions of the platform, Cougar Point is in fact used in both desktop and mobile chipsets based on Sandy Bridge, indicating that the recall could also delay availability of refreshed Apple notebooks such as MacBook Pros.

As noted by VentureBeat, Apple co-founder Steve Wozniak reported last night during an appearance on The Engadget Show that delays for the white iPhone 4 are in fact due to issues with the paint allowing light to leak in and affect camera performance as had been previously rumored. Wozniak also reported that the issues have been solved and that a release for the device should be expected in the near future.

While Wozniak continues to receive a small salary from Apple and obviously has some connections with the company, he is not involved in Apple's day-to-day affairs and does not officially speak for the company. Consequently, he has been known to offer imprecise statements or speculation in the past, although he would appear to have greater access to information than most independent observers.

The white iPhone 4 has been in the public view in recent weeks as Apple's most recent target date of "spring" for the release approaches and evidence of the device has been appearing in databases of a number of carriers and retailers. The issues with the paint have reportedly been solved with a new painting process developed by a small Japanese company.

An interesting series of charts from Asymco reveals that, despite a worldwide mobile phone unit market share of only 4%, Apple accounted for approximately half of the industry's profits for the fourth quarter of 2010.

With only a small unit market share, Apple has managed to achieve its remarkable profits by focusing on the high-priced and rapidly-growing smartphone market while doing so at significant profit margins. That 4% unit share consequently translates to over 20% of industry revenue and just over 50% of industry profits.

Asymco's study based its calculations of revenue and profit shares on data compiled from reports issued by the top eight publicly-traded mobile phone manufacturers: Apple, HTC, LG, Motorola, Nokia, Research in Motion, Samsung, and Sony Ericsson. While included in the "Other" category for unit market share, companies such as Chinese manufacturer ZTE, which edged out Apple for fourth place in the quarterly unit sales rankings, are not included in the revenue and profit data as such information is not publicly available.

The results demonstrate the continuation of a trend that had seen Apple's share of mobile phone industry profits rise from 20% in 2008 to 39% for the first half of 2010. Asymco published a similar estimate of 50% profit share for Apple in the third quarter of 2010.

Late last week, we noted that Active Storage appeared set to introduce a replacement for Apple's Xserve, which is being discontinued as of today. The company followed through today with its introduction of ActiveSAN, a new metadata controller appliance to fill the void left by Xserve's departure.

"On the day that Apple has formally stopped selling Xserve, we have exciting news. Until now, Apple's Xserve was the Metadata Controller of choice for most Xsan installations, providing enterprise form factor and capabilities," said Alex Grossman, CEO of Active Storage, Inc.

"Xsan users in high-pressure industries require datacenter-level quality products to manage their Metadata, but also demand the ease of use and setup of Xsan," continued Grossman. "Previously, that meant one thing: Xsan on an Xserve. But all that changes today - with ActiveSAN."

ActiveSAN is a 1U rackmountable controller based on Linux and the Quantum StorNext SAN file system. Active Storage also offers an integrated Mac OS X user interface to make setup and maintenance a fast and simple process.

ActiveSAN runs on a quad-core Xeon processor with 8 GB of 1066MHz DDR3 memory while offering mirrored hot-swappable 1 TB drives, a dual port 8Gb Fibre Channel card, and dual hot-swappable power supplies.

Full details on pricing and configuration options for ActiveSAN are yet to be announced, and Active Storage plans to demo the new hardware at NAB 2011 in early April with product availability set to follow soon after.

With the nascent worldwide tablet market still in a state of flux as Apple's game-changing iPad is starting to see competition from Android devices now making their way to the market, observers have been working to develop a picture of how things are shaking out in the fast-moving market. Research firm Strategy Analytics today announced the result of its survey of market data for the fourth quarter of 2010, unsurprisingly showing Android rapidly gaining a foothold in a market still dominated by the iPad.

According to the latest research from Strategy Analytics, global tablet shipments reached 10 million units in the fourth quarter of 2010. Apple maintained first position, while Android soared and captured a record 22 percent global share.

Peter King, Director at Strategy Analytics, said, "Global tablet shipments grew 120 percent sequentially to reach 9.7 million units in Q4 2010. Apple maintained first position. Apple recorded an impressive 75 percent global marketshare during the fourth quarter, but it has slipped from a peak of 95 percent in Q3 2010 due to rising competition from Android."

While few had expected Apple to maintain its virtual monopoly on the market and its 75% share still registers as a dominating position akin to that seen with the iPod in the MP3 player market, Android's impressive quarter-to-quarter growth even before the release of the tablet-optimized "Honeycomb" version demonstrates the wide acceptance of Google's mobile platform by device manufacturers and consumers.

With an array of competitors, including Honeycomb-based devices such as the Motorola Xoom and Research in Motion's BlackBerry PlayBook, coming to market over the next few months and Apple preparing to roll out its next-generation iPad, competition in the rapidly-growing tablet market should continue to intensify.

Update: It is important to note that these figures reflect shipments into the sales channels, as is typically reported by manufacturers, not necessarily sales to consumers. And as reported by The Wall Street Journal, many of the Samsung Galaxy Tab units that make up the lion's share of Android's numbers for the quarter may not have made it into consumers' hands.

In early December, Samsung announced it had sold 1 million, declaring that sales were going "faster than expected." Then, in early January, Samsung announced sales of 2 million.

But during the company's quarterly earnings call on Friday, a Samsung executive revealed those figures don't represent actual sales to consumers. Instead, they are the number of Galaxy Tab devices that Samsung has shipped to wireless companies and retailers around the world since product's formal introduction in late September.

Pressed by an analyst at an investment bank, the Samsung executive, Lee Young-hee, acknowledged that sales to consumers were "quite small," though she didn't give a specific number.

Update 2: The Wall Street Journal has corrected its story to indicate that Lee Young-hee had actually said that Galaxy Tab sales were "quite smooth", not "quite small". The error arose from an incorrect transcription of Samsung's conference call.

An analyst from Concord Securities is claiming to have knowledge of some of the upcoming iPad 2 components in their latest research note. According to Ming-Chi Kuo as reported by AppleInsider, the iPad 2 display will not get a higher resolution display as some have hoped.

Instead, the iPad 2's screen improvements will focus on thickness and anti-reflection. The screen is said to be 30-35% thinner and also offer a better sunlight reading experience due to the anti-reflective properties.

The report also claims that the next iPad will use a Cortex A9 dual core processor running at 1.2GHz, as well as Imagination Technologies' SGX 543 dual-core GPU. The iPad 2's RAM will also see a much needed boost to 512MB, equal to the iPhone 4. The iPad 2 is also expected to use the same lower quality front and back cameras found in the iPod Touch.

It's hard to tell where this information is sourced. Some pieces have been reported, but some specifics (1.2GHz, anti-reflective screen) seem to be unique information.

Verizon has sent out emails to existing customers and updated its iPhone information page to confirm that current Verizon customers will be able to order the iPhone 4 beginning at 3:00 AM Eastern time on February 3rd.

Existing Verizon Wireless customers will have an exclusive online purchase opportunity before iPhone 4 is available to everyone else. Order iPhone 4 from our reserved quantity on a first-come, first-served basis beginning at 3 AM Eastern.

Earlier this week, we reported that Verizon had begun notifying corporate customers about the launch time, but the company's new announcement confirms the launch for all current Verizon customers.

A series of rumors over the past several months have suggested that the next-generation iPad could gain an SD card slot, making it easier for consumers to load photos directly onto the device without needing to resort to a dongle attached via its dock connector. Cases surfacing last week and claimed to be for the next-generation iPad suggested that the slot might make an appearance on the top left side of the device, opposite the mute switch and volume rocker.

But a new report from AppleInsider claims that an SD card slot is unlikely to appear in the next-generation iPad, with the unknown case cutout actually corresponding to the 3G model's SIM card slot, which has reportedly been located from further down the left edge of the device.

In a mockup analysis of all the openings and recesses in those cases, it was speculated that that left-side opening could represent the much-rumored SD Card slot. However, a person that AppleInsider trusts on matters such as these has since rebutted that notion, stating instead that the break in the next-gen iPad enclosure at that location is actually a relocation of the tablet's SIM card slot.

That may explain why some of the other next-gen iPad casings making the rounds don't sport the same opening, as users of 3G iPads aren't likely to need ready access to the SIM slot on a daily basis. And like Gruber's sources on the subject, the same person referenced above gave no indication that there's an SD Card slot elsewhere on the device.

Apple is expected to launch the next-generation iPad sometime in the next few months.

Macworld magazine highlights their "Best of Show" awards for products shown at Macworld Expo 2011 this year.

Mac Products

- Awind McTiVia - Transmits your Mac's video and audio to your HDTV over Wi-Fi. The $199 receiver connects to your TV via HDMI. Based on MirrorOp technology, this video shows it in action.
- Dane Elec myDitto Key - A USB key that lets you easily access your home myDitto file server securely while on the go.
- Global Delight's Boom - A $4.99 software volume booster for your Mac.
- OWC Mercury Aura Pro Express SSD - SSD Upgrade for the new MacBook Air. Previous coverage.

iOS Products

- BusyMac BusyToDo - iOS ToDo list manager that syncs with BusyCal or iCal over MobileMe. On sale for $0.99 during Macworld.
- Scosche myTrek Pulse Monitor and iOS App - Armband that monitors your pulse and tracks your progress on an iOS app over Bluetooth.
- Pocket Informant 2.0 - Calendar and task manager for iOS. On sale for $4.99 during Macworld.
- Zagg ZaggMate with keyboard - iPad case with built-in Bluetooth keyboard and stand.
- Rain Design iRest for iPad - An iPad stand designed to also be used on your lap with soft foam cushioning.
- TenOne Designs Fling - A physical joystick that attaches to your iPad's screen.

With Apple set to discontinue the Xserve in just a few days, a number of observers noted earlier this week that Apple's shipping estimates for last-gasp orders are listed as "April". While the reason for the over two-month delay in shipping is unknown, Apple representatives have simply reported that the company is winding down manufacturing and that the "April" estimate is a worst-case scenario.

According to 9 to 5 Mac, Apple is planning to redirect customers interested in Xserve/Xsan solutions to Active Storage, a company founded by former Apple employees who left the company after it discontinued its Xserve RAID offerings in early 2008.

Since the time of that report, Active Storage has updated its website with a teaser for an apparently new product set to debut on January 31st just as Apple discontinues the Xserve. The teaser image appears to show a rackmountable hardware unit, seemingly in a 2U form factor, covered with a black cloth. While the company has released no other information about the forthcoming product, it does appear as though Active Storage is preparing to fill the void left by the Xserve's discontinuation, quite possibly with Apple's blessing and assistance.

LA Weekly reports (via The Next Web) that a class action lawsuit has been filed against Apple over the iPhone 4 and its claimed propensity for breakage. The lawsuit feeds off the "Glassgate" publicity that has seen the iPhone 4 judged to be more accident-prone than other smartphones due to Apple's use of glass on both the front and back of the device.

Apparently fed up and pissed off, California resident Donald LeBuhn filed a class action lawsuit earlier this week in L.A. County against Apple, claiming the company knows about the design flaw and refuses to warn consumers that "normal" use leads essentially to a broken phone.

According to his lawsuit, first reported by Courthouse News Service, LeBuhn threw down $252 in September for a new iPhone 4, but three weeks later the glass broke when his daughter accidentally dropped it approximately three feet to the ground while sending a text message.

He previously owned a 3GS version of the iPhone and claims the glass did not break when accidentally dropped from similar heights.

In his filing, LeBuhn cites Apple marketing materials for the iPhone 4, which claim that the "ultradurable" glass used in the iPhone 4 is "20 times stiffer and 30 times harder than plastic". According to LeBuhn, these claims are misleading at best, and his suit seeks full refunds for customers covered by the class action suit and reimbursement for any repairs made.

With all of the focus on Apple's flash-based iPod devices, it's easy to forget that the company still offers the iPod classic for users looking to carry around larger music libraries while on the go. Apple last updated the $249 iPod classic in September 2009, boosting the device's capacity from 120 GB to 160 GB, and some have wondered whether Apple will be discontinuing the device given the lack of updates since that time.

But as noted by Hardmac, a new line of 1.8-inch hard drives introduced by Toshiba earlier this week could breathe new life into the iPod classic and enable Apple to boost its capacity to 220 GB. Toshiba's new MKxx39GSL series (PDF) comes in 160 GB, 200 GB, and 220 GB capacities, all in a single-platter form factor matching the 5 mm drive thickness used in the current iPod classic.

It is unknown when Apple would make the shift to a 220 GB iPod classic if it indeed elects to adopt the new Toshiba drive. The company has in recent years shifted to a yearly iPod update cycle centered on September releases, meaning that the company would likely have to either wait another seven months to update the iPod classic along with the rest of the line or quietly release a mid-cycle capacity bump for only the iPod classic. With the iPod classic having missed the September 2010 update seen by the rest of the iPod line and the current model thus now being almost 18 months old, Apple could easily consider the mid-cycle upgrade if it is indeed planning on keeping the device alive.

Research firm IDC yesterday released results for global mobile phone unit shipments in the fourth quarter of 2010, showing Apple slipping to fifth place behind Nokia, Samsung, LG and a surging ZTE. Apple had entered the top five in fourth place last quarter on the strength of the iPhone 4 release, garnering 4.1% of the market, and dropped slightly this quarter to 4.0% as a booming market offset Apple's own unit growth. But on a year-over-year basis, Apple's 86.2% growth easily outpaced the overall market's 17.9% expansion.

The iPhone maker slipped to the number 5 position despite a record quarter for unit shipments and the departure soon thereafter of CEO Steve Jobs on medical leave. It was the company's second straight quarter on IDC's Top 5 list. The iPhone sold particularly well in developed regions of the world, such as North America and Western Europe. Apple, which said it could have sold more iPhones last quarter had it been able to make more, is set to introduce the touchscreen device on Verizon next month.

Despite only appearing in the top five for the final two quarters of the year, Apple was also able to make the list for full-year 2010, shipping 47.5 million iPhones to snag fifth place with 3.4% of the overall mobile phone market. Apple's shipment increased 89.2% in 2010, well ahead of the overall market's 18.5% growth for the year and enough to push Apple's share of the market to 3.4% from the previous year's 2.1%.

All Things Digital reports that Microsoft is "looking at" the possibility of offering its Office productivity suite through the Mac App Store, a move which could be a tremendous boost the new marketplace for Mac OS X applications modeled on Apple's successful iOS App Store.

"It's something we are looking at," Microsoft's Amanda Lefebvre told Mobilized. However, the company said its product is already available in lots of places as well as via the Webincluding in a new, free 30-day trial version.

"It's something we haven't ruled out," she said. "We just have to see how that relates to our business."

It is unclear how Microsoft would deal with Apple's restrictions on Mac App Store content and Apple's standard 30% cut of revenue from applications sold through the store if it did in fact to offer Office through the marketplace, but such a move would obviously be a significant vote of confidence in the Mac App Store given Office's widespread popularity.

Soon after the iPad's introduction early last year, Microsoft offered similar sentiments about bringing Office to Apple's tablet device, but the company had decided by the time the iPad actually launched in early April that it had "no current plans" to make the move.

Microsoft has, however, taken its first steps onto the iOS platform with last week's release of OneNote, and the company noted in today's interview that it is committed to bringing Office to more platforms.

Macworld Expo 2011 kicked off this week with the floor show opening today. This is the second year that Macworld expo has gone on after Apple's withdrawal in 2009. Last year's show was considered a success and early reports claim that this year's show claim higher early numbers in both floor space and pre-registration. Unlike CES and WWDC, Macworld Expo remains open to the general public so much of the foot traffic comes from interested Apple consumers.

The show seemed busy and crowded on the first day, and there were many well known products but also a few new ones.

A brand new product introduced was The Fusion Phone, which promises to be a combination landline dock, speaker and charger for your iPhone. It also provides a traditional dock connector for recharging and a passthrough USB connector so you can sync with your computer.

Beyond the usual dock features, it also offers a bluetooth connection so you can play music or take phone calls through the traditional handset. The Fusion Phone will begin shipping in April, and pre-orders are being taken now for $149.

Navigon, the makers of the popular turn-by-turn navigation app for the iPhone and iPad, announced the release of a car windshield mount accessory with car charging cable. The $49.99 accessory was promoted as a "barely there" design to showcase the iPhone itself.

The company was also promoting its Navigon 1.7 release which came in December. The latest version of the turn-by-turn software offers a single Universal app that supports both iPhone and iPad. Navigon takes advantage of the larger iPad screen to make it easier to plan routes, and those routes can also be sent by email to your iPhone version. So pre-planning can take place on the iPad, even if you don't want to have to bring it with you in the car. Other new features included Zagat content and Google reviews for restaurant ratings, active lane assistance, retina display support and a way to send back map errors to their map provider.

Navigon North America is presently on sale for $49.99 (from $59.99).

Splashtop was showing off their remote desktop app for iPhone and iPad. The $1.99 apps allow you to remotely control your Mac OS X installation over Wi-Fi or 3G. It does require a client to be installed on your Mac for it to work, but also has full support for sound and claims higher performance than traditional remote desktop clients.

A free trial of the iPad version is available that limits sessions for 5 minutes.

Apple today released iTunes 10.1.2, with Apple's download page details noting only that the update offers stability and performance improvements.

About iTunes 10.1.2
iTunes 10.1.2 provides a number of important stability and performance improvements.

A look at the release notes included with the actual download reveals, however, that the update also brings support for syncing the CDMA iPhone set to launch on Verizon early next month.

iTunes 10.1.2 syncs music, movies, and more with iPhone 4 (CDMA model) and provides a number of important stability and performance improvements.

iTunes 10.1.2 is available via Software Update and Apple's iTunes download page.

With Verizon set to launch the iPhone in just a few weeks, analysts have been attempting to estimate just how many units Apple might be able to sell through the carrier during the first year, with many analysts projecting the number to be in the range of 10 million units and reports of Apple preparing for shipments of 25 million CDMA iPhone units worldwide suggesting that the estimates may at least be in the ballpark.

But according to All Things Digital, one analyst has gone out on a limb to note that Verizon might be able to sign up as many as 25 million iPhone customers over the first year, if Apple can make the units quickly enough. According to R.W. Baird analyst William Power, surveys of current wireless customers reveal that substantial numbers of both current feature phone and smartphone users say that they are "probably" or "definitely" going to purchase a Verizon iPhone soon after the device's launch.

From the survey:

- 29 percent of current Verizon feature phone owners said they will "probably" or "definitely" upgrade to the Verizon iPhone in the next three months. The carrier has roughly 64 million postpaid feature phone users, so that's 19 million potential iPhone upgrades, assuming eligibility.

- 25 percent of Verizon's current smartphone users said they will "probably" or "definitely" switch to the iPhone. That's 4.8 million additional potential iPhone sales, again assuming eligibility.

Grand total: 23.8 million potential Verizon iPhone salesfrom the carrier's installed base alone. Add to that the 5.6 percent of current AT&T iPhone users who told Baird they planned to switch to Verizon and that number rises to nearly 25 million.

Surveys of future buying plans are of course subject to a fair degree of error when it comes to predicting actual results, as some customers will undoubtedly fail to follow through on their stated plans. Taking into account that factor, as well as constraints on Apple's production capacity and the eligibility of surveyed customers to upgrade at the best pricing, Power is maintaining an estimate of 10 million Verizon iPhone activations in the first year, but the survey result do indicate incredible awareness of and interest in Apple's smartphone offerings.