MacRumors

With Apple using the new developer build of iOS 4.3 to test new multi-touch gestures for accessing the home screen and switching between applications, speculation immediately arose that Apple might be considering doing away with the home button on the iPad as a means for shrinking the device.

According to BGR, Apple is in fact contemplating doing just that, with both the iPad and iPhone being considered for home button removal.

We have exclusively been told that the reason Apple just added multitouch gestures for the iPad in the latest iOS 4.3 beta is because the iPad will be losing the home button. Yes, we are told that Apple, at some point in time, will remove the home button from the iPad's design. Instead of button taps, you will use new multitouch gestures to navigate to the home screen and also to launch the app switcher.

That's not all, however. In addition to the home button disappearing from the iPad, we're told that this change will make its way over to the iPhone as well. Our source said Apple employees are already testing iPads and iPhones with no home buttons on the Apple campus, and it's possible we will see this new change materialize with the next-generation iPad and iPhone devices set to launch this year.

BGR's source also indicates that the next-generation iPad may gain Photo Booth functionality and more iPad-specific versions of iLife applications.

The potential removal of the home button is certain to be controversial, as Daring Fireball's John Gruber argues that the single physical feature on the front of the device serves as a reference for new users, allowing them to intuitively know how to use the device the first time they pick it up.

These gestures do mean that you don't have to use the Home button. But there's a serious discoverability problem with them. The physical Home button is impossible to miss. That it is the one and only button on the faces of these devices is a big part of why normal people are able to pick them up, start playing with them, and figure out how to get around with no help. How in the world would a normal person figure out or guess that they need to do a "five-finger pinch" to get back to the home screen?

Usability issues are an even bigger hurdle on the iPhone, with its limited screen size for many-finger gestures and the ease of use it currently enjoys with one-hand operation using solely the thumb to navigate around the device.

Some further digging into the newly released iOS 4.3 developer build has revealed settings for a new feature called "Find My Friends". The strings are associated with the Settings app and is related to "MobileMe". The obvious interpretation is that Apple may be looking to offer a location-based friend-finding service like Loopt and Google Latitude.

Services like Loopt allow you to find your friends who near you at any given time by leveraging your mobile phone's GPS signal. The constant updates can broadcast your location to your friends to know who is nearby. Obviously, these sort of systems are opt-in only, but shows what Apple maybe up to in fleshing out their MobileMe service. Steve Jobs wrote in an email in December that the MobileMe service will get "a lot better in 2011".

Location-based services have seen incredible growth and interest in the recent years, with several companies like Twitter and Facebook offering location-based features.

As first noted by Engadget, the latest iOS 4.3 developer build contains model references to as-yet unreleased iPhone and iPad models. The new designations include:

iPad2,1
iPad2,2
iPad2,3
iPhone4,1
iPhone4,2

For reference, the first generation iPad carries a model number of "iPad1,1" while the AT&T iPhone 4 carries the "iPhone3,1" model number. These new designations likely represent the next generation iPad and iPhone. It seems likely the second digit represents hardware differences between models -- such as a Verizon iPhone and AT&T iPhone. The iPad is also believed to be coming to both Verizon and AT&T, so that may explain at least a few of the different model numbers.

The iPad 2 is believed to be coming out in the next month or so, while the iPhone is traditionally refreshed in the summer during WWDC.

One of the most interesting new features found in the developer release of iOS 4.3 is the introduction of four and five finger gestures for the iPad.

This beta release contains a preview of new Multi-Touch gestures for iPad. You can use four or five fingers to pinch to the Home Screen; swipe up to reveal the multitasking bar; and swipe left or right between apps. We are providing this preview before releasing them to the public to understand how these gestures work with your apps.

The above video shows the user four-finger swiping from left/right to switch between multitasking apps. Meanwhile pinching with 4 or 5 fingers can return you to the home screen, which potentially removes the need for a physical home button.

iOS 4.3 is not yet available for public download.

One of the more controversial changes made with the release of iOS 4.2 late last year was a change in the functionality of the switch on the side of the iPad, moving it from a screen rotation lock to a mute switch as seen on the iPhone. Apple CEO Steve Jobs had even reportedly responded to a customer question by noting that the change was permanent and that it would not be a user-configurable option.

Apple appears to have had a change of heart, as today's iOS 4.3 beta appears to have added an option in the device's Settings application to allow users to customize the behavior of the switch.

MacStories reports that Apple has seeded the first beta version of iOS 4.3 to developers. The iOS 4.3 beta is available in versions for iPad, iPhone 4 and 3GS, and third- and fourth-generation iPod touch, as well as a separate download for the new Apple TV. Consequently, it appears that Apple will no longer be supporting the iPhone 3G and second-generation iPod touch with operating system updates.

Details of changes included in the new version are unknown at this time, although Apple has been said to be building in support for personal hotspot functionality as seen on the Verizon iPhone, as well as possible support for recurring billing for App Store content subscriptions such as News Corp.'s forthcoming tablet-focused news publication, The Daily.

Update: We've heard that the new version now allows developers to stream video to compatible devices via AirPlay.

MacStories also notes that Apple has implemented new multi-touch gestures for the iPad, including four- and five-finger pinch gestures to take users to the home screen, swipe for multitasking tray, and swipe to switch apps.

Update 2: Configuration settings for personal hotspot functionality are indeed present in the iOS 4.3 beta.

Update 3: A new FaceTime icon and support for full-screen banner format iAds for the iPad have also been spotted.

Other World Computing (OWC) last week announced the debut of its new Mercury Aura Pro Express solid state drives for Apple's latest 11-inch and 13-inch MacBook Air models. The new drives, which offer greater speed and capacity than Apple's factory options, are available in 180 GB, 240 GB, and 360 GB capacities. Based on a SandForce controller, the drives also feature a number of other technologies to enhance speed, performance, and data integrity.

The Mercury Aura SSD line features industry leading SandForce DuraClass Technologies:

- DuraWrite extends the endurance of your Solid State Drive (SSD).
- Intelligent Block Management & Wear Leveling automatically distributes data evenly across the entire SSD.
- Intelligent Read Disturb Management spreads the active read/write across the flash components eliminating data corruption caused by constant use.
- Intelligent "Recycling" for advanced free space management gradually re-writes data across the SSD over time to ensure data never gets corrupted.
- RAISE (Redundant Array of Independent Silicon Elements) protects the data on your drive similar to having a RAID setup.
- Best-in-Class ECC Protection for longest data retention and drive life.

Prices begin at $499.99 for the 180 GB drive and move up to $579.9 for the 240 GB model and $1,179.99 for the 360 GB model. Shipping estimates are currently listed at 19 days for the 180 GB version, 2 days for the 240 GB version, and "pending" for the 360 GB version.

All three drives are compatible with both the 11.6-inch and 13.3-inch MacBook Air models introduced in October 2010. Apple's own drive options begin at 64 GB for the 11.6-inch model and top out at 128 GB, while the 13.3-inch model comes with 128 GB and 256 GB options.

Taiwanese firm PhotoFast had previously announced similar SandForce-based SSDs ranging up to 256 GB that would be compatible with the 11-inch MacBook Air, but Apple quickly moved to halt sales of the drives. It is unclear if Apple is objecting to the new offerings from OWC and/or applying pressure to have them removed from sale.

Bloomberg takes a look at the negotiations between Apple and Verizon that finally led to yesterday's announcement that the carrier will begin carrying the iPhone next month after three and half years of AT&T exclusivity in the United States. Among the interesting tidbits of information revealed in an interview with Verizon President Lowell McAdam:

- The Verizon cell towers on Apple's campus disclosed by Steve Jobs last July were in fact installed to enable testing of the CDMA iPhone on Verizon's network.

The companies erected Verizon cellular towers at Apple's Cupertino, California, headquarters to check the phone's signal and avoid the reliability troubles of the iPhone at AT&T.

- Engineers from Apple and Verizon worked very closely together throughout product development, with a top Verizon engineer spending more than a year working directly on Apple's campus and Apple engineers being provided with "their own laboratory to play with" at Verizon.

- Negotiations were primarily handled by McAdam and Apple Chief Operating Officer Tim Cook, with input from Jobs and Verizon CEO Ivan Seidenberg as needed.

"We probably worked six or nine months on the technical side of this and saw we could make this work," he said. "Then we did the commercial side. The commercial deal took us a day.

- Verizon and Apple also had to reach an understanding about the prominence Verizon's branding would have on the device, with the iPhone carrying no external Verizon logo and no preinstalled applications or custom software changes promoting the carrier.

To reach a deal, Apple and Verizon had to reconcile different approaches to branding. Verizon puts its stamp on other manufacturers' devices, including phones from Research In Motion Ltd. and Motorola. By contrast, only Apple's name appears on the iPhone.

"They don't put a lot of logos on their phones," McAdam said in the interview. "So that wasnt a major issue for us."

Former Apple executive Jean-Louis Gassee notes that Verizon was likely easily persuaded to go along with Apple's demands in the branding department after seeing the success of the device on other carriers under similar terms.

TechFlash reports that Microsoft has filed a motion (PDF) asking the U.S. Patent and Trademark Office to deny Apple's application for a trademark on the term "App Store", arguing that the term is a generic one that other entities should be free to use.

"Any secondary meaning or fame Apple has in 'App Store' is de facto secondary meaning that cannot convert the generic term 'app store' into a protectable trademark," write lawyers for Microsoft in a motion for summary judgment, filed yesterday with the Trademark Trial and Appeal Board. "Apple cannot block competitors from using a generic name. 'App store' is generic and therefore in the public domain and free for all competitors to use."

Microsoft notes that Apple's claims on the "App Store" term have forced its competitors to tweak references to their own stores, calling them "Application Stores" or "App Marketplaces". The company also references cases in which the courts have decided that companies may not "usurp a generic term" for trademark purposes if it would prevent competitors from adequately describing their own products.

Microsoft also points to use of the generic term "app store" by the media, consumers, and even Apple CEO Steve Jobs himself in reference to non-Apple stores as evidence that the phrase is generic and should not be accepted as an Apple trademark.

Apple has been trying since July 2008 to convince the Patent and Trademark Office to grant a trademark on the phrase, with examiners initially denying the application under the rationale that the term is merely descriptive of the services offered by Apple. Apple appealed the decision a few months later, submitting a stack of evidence showing that the term had acquired distinctiveness in marketing materials and media coverage. In response, examiners tentatively decided to award Apple the trademark and published it for opposition in January 2010.

Microsoft signaled its opposition to the trademark approval in July of last year, and followed that up with the motion for summary judgment filed earlier this week in an effort to speed the dismissal of the trademark using the argument that generic terms can not be protected even if they have achieved notability.

One of the major new features offered with the Verizon iPhone 4 announced today is support for turning the device into a personal hotspot allowing up to five Wi-Fi devices to share the iPhone's cellular data connection. Personal hotspot support comes built directly into the operating system of the Verizon iPhone 4, which is running a new iOS 4.2.5.

According to both iPhoneclub.nl [Google translation] and iPhoneHellas [Google translation], Apple will be bringing the same personal hotspot support to current GSM iPhones with a forthcoming iOS 4.3 update.

The catch is that the functionality is also subject to the approval of individual carriers, requiring them to be onboard for allowing their customers to access the feature. For its part, AT&T has said that it is "evaluating" the hotspot feature and that it has "no plans to announce today".

Despite support for somewhat-similar Internet tethering via USB and Bluetooth included in iPhone OS 3.0 released in mid-2009 and with a number of international carriers moving quickly to support the feature, AT&T waited an entire year as it cited concerns over network performance before finally supporting the feature with the release of iOS 4.0.

Update: BGR has "confirmed" with one of its sources that the hotspot functionality will in fact come to all iPhones with iOS 4.3, which the source claims is due for release in March.

According to our source, the personal hotspot feature that debuted on the Verizon iPhone yesterday will, in fact, be making its way to all iPhones in iOS 4.3. We're sure there will need to be carrier support for this feature, and for AT&T users it is entirely possible we might not see this right away.

The report also offers several screenshots appearing to show the "Personal Hotspot" settings on a non-Verizon iPhone, including a change in the icon used for the service.

Following today's announcement that the iPhone will finally be made available in a CDMA version for use on Verizon's network, Bloomberg reports that a version of the iPad directly compatible with its network is set to follow suit.

Verizon Wireless will sell a version of Apple Inc.'s iPad tablet computer that can connect directly to its network, posing another challenge to AT&T Inc. as the carrier's exclusive hold on the iPhone draws to a close.

Verizon will get an embedded chip in the iPad for use on its network, Francis Shammo, chief financial officer of Verizon Communications Inc., the parent of the wireless unit, said today in an interview in New York. IPad users currently need an extra device to connect to Verizon's network. Shammo declined to say when the change may happen.

The most recent rumors of a CDMA iPad surfaced in late December, claiming that the next-generation iPad will come in three versions: Wi-Fi, UMTS (GSM) 3G and CDMA 3G.

Verizon began carrying Wi-Fi models of the iPad in late October, pairing them with MiFi mobile hotspot devices at package prices on par with those of the corresponding models for other carriers featuring built-in 3G.

With Verizon having announced today that it will begin offering the iPhone early next month and event attendees getting their first hands-on experiences with the device, a number of details have surfaced that are worth noting:

- Personal Hotspot: The Verizon iPhone 4 supports personal hotspot services, allowing up to five devices to share the phone's 3G data connection. Configuration options for the hotspot functionality are cleanly located within the iPhone's standard Settings application rather than in a separate application.

Verizon has not announced pricing for the iPhone 4 data plans, although the carrier has been rumored to be utilizing its standard data packages for on-phone usage, which include an option for unlimited data at $29.99 per month. Hotspot data pricing, however, remains unknown, as the carrier currently charges users of many of its smartphones an additional $20 per month for a separate 2 GB data allotment for personal hotspot use, although some devices such as those from Palm include a 5 GB hotspot allotment with no extra monthly charges.

- Antenna Design: As we noted in our initial article on the announcement, Apple has in fact tweaked the antenna design on the CDMA iPhone 4 to accommodate the different technology. According to Ars Technica, the Verizon iPhone exhibits no visible signal loss when gripping the edges of the phone, although even on the GSM iPhone 4 reproducibility of the issue varied depending in large part on signal strength.

Ars contributor Chris Foresman reported that bridging the remaining gap on the Verizon iPhone (using the "death grip," he says) did not result in any kind of CDMA signal attenuation. He also placed a call while death gripping and said that there was no noticeable signal loss.

- iOS 4.2.5: The demo units of the Verizon iPhone 4 on display at the event are running a special version of the iOS operating system known as iOS 4.2.5, compared to iOS 4.2.1 found on GSM versions of the device. The new version has clearly been developed to support some of the Verizon- and CDMA-specific changes, including the personal hotspot functionality. It is unknown what version of iOS the Verizon iPhone will finally ship with next month.

- Cases and Bumpers: As noted by TUAW, slight shifts in the placement of physical buttons on the Verizon iPhone, primarily a change in the position of the mute switch to accommodate the new antenna design, mean that many current iPhone 4 cases and bumpers will not fit the Verizon version.

- No SIM-Card Slot: One other distinguishing physical difference between the GSM and CDMA iPhone 4 models is the lack of a SIM-card slot in the side of the Verizon version, as CDMA technology does not require the use of a removable SIM-card as with GSM technology. A parts leak last week claimed to be from either the CDMA iPhone 4 or the iPhone 5 accurately showed the locations of the new breaks in the frame of the CDMA version, but also included a SIM-card slot.

- White iPhone 4 Images Removed: While not strictly related to the Verizon iPhone 4, Apple appears to have taken the opportunity of the Verizon iPhone introduction to essentially scrub its site entirely of images showing the white iPhone 4. Apple had dramatically scaled back its usage of the white iPhone 4 in promotional images following an October announcement that the model had been delayed until spring 2011, but some references had remained until today.

Apple and Verizon announced the Verizon-compatible iPhone today. The new iPhone 4 is functionally identical to the existing AT&T/GSM iPhone 4, but has been made CDMA compatible to run on Verizon's network. It seems there have been some antenna changes to the design with an additional antenna break in the casing.

The new antenna design was leaked in an early video that was later removed by Apple. The new design has moved the antenna break position from the top to the sides of the device. The change may simply be to accommodate CDMA's different communication frequency rather than address the antenna issue from the original design.

The iPhone 4 for Verizon will begin preorders on February 3rd with availability starting on February 10th. The 16GB model will cost $199.99 and the 32GB model $299.99 with two year contract.

In a surprise move, Verizon is allowing the iPhone 4 to be a mobile Mi-Fi device that can share its 3G connection to up to 5 Wi-Fi enabled devices. This means your laptop can share your iPhone's 3G internet connection when a regular connection is not available. However, as a CDMA device, you won't be able to use your 3G internet connection and Voice at the same time.

Pricing details have not been announced.

Verizon has posted a FAQ for potential iPhone customers.

Verizon today is holding a media event where it is widely expected to announce that it will begin offering the iPhone, marking the end of AT&T's exclusive distribution for the device in the United States.

The event is scheduled to kick off at Lincoln Center in New York City at 11:00 AM Eastern Time, or a little under 30 minutes from now. Verizon does not appear to be providing live video or audio coverage of the event, and thus observers will have to rely primarily on text and photo updates coming out of the event.

Live Web/Twitter Coverage

- Engadget
- MobileCrunch
- Ars Technica
- The Loop
- BGR
- MacRumors Twitter updates

We'll also be providing event updates here in this article.

Recent News and Rumors

- Verizon Media Event Today, iPhone Expected
- Verizon Expresses Confidence in Network Capacity as AT&T Preps for Competition
- Verizon iPhone to Ship in A Few Weeks with Unlimited Data Plans?

Event Updates

- The Daily Show's John Oliver is on hand, with cameraman apparently in tow.
- Media has been admitted to the venue and attendees are getting seated. Venue has a small stage with a screen showing Verizon's logo and the company's "Rule The Air" marketing logo.
- We're getting underway. Verizon's Lowell McAdam is on-stage.
- Setting context with CES and the convergence of data, broadband, and video. "Today two innovators are coming together."
- Talking about FiOS, new 4G LTE network rolling out. "We debated calling this 6G" - responding to other carriers such as AT&T rebranding their HSPA+ service as "4G".
- "Today we're partnering with a giant of the industry, and that's Apple."
- Started talking about bringing the iPhone to a CDMA network in 2008. Tested for a year.
- Today announcing that the iPhone 4 will be available on Verizon early next month.
- Thanking Apple's senior team...pleasure working together.
- Apple COO Tim Cook on-stage. Highlighting success of iPhone, very excited to bring it to Verizon.

- Has all the features you expect: FaceTime, Retina display, 5-megapixel camera with HD video, custom A4 chip, etc.
- Verizon's Dan Mead on stage to talk about launch details.
- Verizon employees getting the iPhone this week. Ramping unprecedented supply in inventory system.
- Talking about network preparations...have been building in capacity to handle the coming surge.
- Current Verizon customers can pre-order beginning February 3rd. Available to all at Verizon and Apple stores on February 10th.
- Pricing is $199 for 16 GB, $299 for 32 GB. Can also act as Wi-Fi hotspot for up to five devices.
- End of presentation. Cook and Mead now taking questions.

Q&A

Q: How many do you plan to make in the first quarter or year?
A: Cook: I'm not going to get into our forecast. But it's a tremendous opportunity.

Q: Will it be on a yearly refresh cycle?
A: Cook: No comment.

Q: Why no LTE?
A: Cook: Two reasons - First, LTE chipsets force design changes we couldn't make in the iPhone 4. Second, Verizon customers said they want the iPhone now.

Q: Is the CDMA version exclusive to Verizon?
A: Cook: It's a multi-year deal, but non-exclusive.

Q: Did you change the antenna?
A: Cook: We've optimized things to work on CDMA, but I'm not commenting on anything beyond that.

Q: Simultaneous voice and data?
A: Mead: "It's consistent with other CDMA devices now", meaning no.

Q: Any new capabilities compared to GSM version?
A: Hotspot is new.

Q: When will we see LTE version?
A: No comment.

Q: Coming to indirect sales channels?
A: Yes, but not at first...Verizon and Apple only at first.

Q: More questions about lack of simultaneous voice and data and whether that will be disappointment for users.
A: Cook: It's all about getting it on Verizon. The customers who want it there will be willing to make the trade-off.

- End of event. Demo units provided for attendees to test out.

Verizon is expected to introduce the long-rumored Verizon iPhone at their press conference today which takes place at 11am Eastern in New York City. The rumors have been particularly frequent over the past few days with some small details being leaked in the run up to the announcement.

AT&T is predicted to be the biggest loser coming out of the event. Analysts believe that AT&T could lose millions of customers to Verizon during 2011. Losses will be tempered by the 2 year contracts that most iPhone 4 users signed in mid-2010. AT&T claims to be preparing for a fight with plans to run new ads to emphasize their network's benefits.

One frequently cited advantage of AT&T's network over Verizon's is the ability to connect both Voice and Data simultaneously. Apple and AT&T even highlighted this feature in several television ads in 2010. While there had been rumors that such a feature might be deployed on Verizon's network as well, there's been no indication that it will be ready in time for today's launch.

The significance of a Verizon-compatible iPhone is that for the first time in the U.S. there will be multiple carriers offering the iPhone to customers. The move may also threaten Android's growth in the U.S. with one analyst predicting that the iPhone will significantly cannibalize sales of competing models on Verizon's network.

Much has been made over the past year or so regarding NVIDIA's exit from the chipset business in the wake of a dispute with Intel over whether or not NVIDIA was permitted to build chipsets for Intel's latest Core series processors. That dispute forced Apple's hand for its recent small notebooks, leading Apple to stick with aging Core 2 Duo processors paired with a custom NVIDIA integrated graphics chip, as NVIDIA was still permitted to offer chipsets compatible with those processors. The alternative for Apple was to offer newer Intel processors but with Intel's integrated graphics, which offered much poorer performance than NVIDIA's offerings.

NVIDIA and Intel today announced that they have entered into a new patent cross-licensing agreement that will see Intel pay NVIDIA $1.5 billion over six years, but the new agreement (PDF) appears to still prohibit NVIDIA from developing its own chipsets for Intel's latest processors.

The Parties agree to amend the Chipset License by adding the following at the end of Section 2.14 of the Chipset License:

"Notwithstanding anything else in this Agreement, NVIDIA Licensed Chipsets shall not include any Intel Chipsets that are capable of electrically interfacing directly (with or without buffering or pin, pad or bump reassignment) with an Intel Processor that has an integrated (whether on-die or in-package) main memory controller, such as, without limitation, the Intel Processor families that are code named 'Nehalem', 'Westmere' and 'Sandy Bridge.'"

Rumors of a settlement had been circulating, but NVIDIA has remain firm in its stance that it has exited the chipset business for good and that Apple is likely to continue using Core 2 Duo processors paired with NVIDIA's MCP89 chipset for quite some time. For its part, Intel's latest Sandy Bridge processors, introduced last week, bring significantly enhanced graphics performance for integrated systems, making them a viable alternative for Apple in future hardware updates.

Update: From the press call:

NVIDIA just said on its press call that it has "no intentions to build chipsets for Intel processors," and that Intel will be able to use NVIDIA's technology in Sandy Bridge