MacRumors

MediaMemo notes that Warner Music Group has reported seeing slower sales growth via Apple's iTunes Store since the introduction of variable pricing last year.

Warner Music Group (WMG) said this morning that it has seen unit sales growth at Apple's iTunes (AAPL) decelerate since the price increase: Industry-wide, year-over-year "digital track equivalent album unit growth" was at 5 percent in the December quarter, down sequentially from 10 percent in the September quarter and 11 percent in the June quarter.

And since iTunes sales make up the majority of Warner's digital revenue, growth is contracting there, too. In the last quarter, digital revenue at the label was up 8 percent compared to the previous year; a year earlier that number was 20 percent.

According to the report, Warner CEO Edgar Bronfman, Jr. claims that the pricing increase has been a "net positive" for the company as it sees the music download business maturing, but acknowledges that raising music prices 30% during a recession may not have been a smart move.

Apple has continued to maintain a nearly 70% share of the overall digital music download market, and last year reached 25% of the total music market in the U.S. as customers continue to move away from physical CD sales in favor of digital distribution.

MediaMemo points to Warner's example as a warning for book publishers, who have begun leveraging Apple's iPad in dealing with major eBook retailers such as Amazon to gain greater control over eBook distribution and increase prices.

Apple today announced the release of Aperture 3, adding over 200 new features to the company's professional photo editing and management application. The updated version includes the Faces and Places tagging features introduced in iPhoto last year, as well as a new feature called Brushes for making painting image adjustments to photos. Also included are Adjustment Presets, which offer one-click options for applying specific styles or looks to entire images.

"Millions of people love using iPhoto to organize, edit and share their digital photos," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing. "Aperture 3 is designed for both professionals who edit and manage massive libraries of photos and iPhoto users who want to take their photos further with easy-to-use tools such as Brushes and Adjustment Presets."

Aperture 3, which runs as a 64-bit application on Intel Core 2 Duo Macs running Mac OS X Snow Leopard, is available for a suggested retail price of $199, with existing Aperture users able to upgrade for $99. A downloadable 30-day trial is also available.

A new job posting on Apple's site suggests that the company is preparing to add still and video camera capabilities to its iPad tablet device in the future. The position is for a quality assurance engineer in the Media Systems division of Apple's broader Interactive Media Group and is specifically focused on the "iPad Media" segment of the division.

The Media Systems team is looking for a software quality engineer with a strong technical background to test still, video and audio capture and playback frameworks. Build on your QA experience and knowledge of digital camera technology (still and video) to develop and maintain testing frameworks for both capture and playback pipelines.

According to the job description, the employee will be responsible for assisting the development team by testing performance of their systems and developing appropriate tools for performing the testing.

Familiarity with and interest in photography, video as well as media file formats is highly desirable. Experience with tuning of and image pipeline, including, but not limited to AWB, Color Correction, AutoExposure, FrameRate adjustments is a plus.

The lack of a camera has been seen by many observers as a significant disappointment for the iPad. It does appear, however, that the iPad's enclosure contains an empty space appropriate for a notebook-style iSight camera, and the resulting speculation has included thoughts that Apple had either planned to offer a camera in the iPad but pulled it for unknown reasons or is still planning to offer one in the shipping version but did not include discussion of it during the device's introduction for similarly unknown reasons.

Yesterday, a poster in our forums claiming to be a Best Buy employee reported that the company's internal inventory system had been updated to show that all MacBook Pro models had been "deleted", preventing Best Buy stores from ordering any new units of the existing models. Earlier today, the poster followed up with additional information in the form of screenshots of the inventory system showing the "deleted" status for Apple's current entry-level 13-inch and 15-inch MacBook Pro models.

We have heard some whispers that Apple may be planning to introduce new MacBook Pro models tomorrow, coinciding with the Macworld Expo despite the lack of an Apple presence at the event. Late last week, an entry for an unreleased MacBook Pro model based on a new Intel Core i7 processor appeared in Geekbench's online benchmarking database.

Best Buy inventory screens are relatively frequent sources of rumors of imminent product updates, and they typically generate a significant amount of interest and discussion. We have been told in the past, however, that the company frequently makes changes to its inventory system in anticipation of future announcements without any official knowledge from Apple. This is not always the case, however, as an unidentified "mobile computing" device that appeared in Best Buy's system last May did turn out to be a revised MacBook that was released two days later.

Update: Another Best Buy source has informed MacRumors that the Apple notebooks appeared in the inventory system of the store in question as "deleted" simply because the location does not carry Apple computers in-store. Other Best Buy locations continue to be able to order new stocks of Apple notebooks, although an update to the company's MacBook Pro line is still expected in the relatively near future.

iPhone repair site iResQ has posted photos of what it claims are parts for the fourth-generation iPhone presumably due for launch later this year. Among the most notable features of the claimed parts are a front panel that appears to be approximately 1/4" taller than the current iPhone 3GS.

Also present on the new front panel part is a "reflective surface" located just above the earpiece slot on the iPhone. It is not immediately obvious what the feature might be, and iResQ offers no speculation on its function beyond suggesting that it is a likely location for a proximity sensor, although that would not explain the need for the mirrored surface to be visible on the front of the device.

Claimed leaks of future iPhone parts from Asian suppliers have been relatively common in the past, although such claims should generally be taken with a grain of salt, as evidenced by a claimed iPhone bezel leaked last May that actually turned out to be a part from the Creative Zii Egg.

The Wall Street Journal reports on a research note from Credit Suisse analyst Bill Shope based on meetings with Apple executives revealing that the company has apparently left the door open to future price cuts on the iPad should customer demand not meet expectations.

Shope also wrote that despite the seemingly aggressive pricing of the iPad - the lower-than-expected price points range from $499 to $829 - Apple seemed to indicate it would respond with price cuts if demand for the device wasn't revving up the way it liked. "While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated)," Shope wrote.

Many observers were surprised by Apple's entry-level price point of $499 for the iPad, with general consensus having been that pricing would come in significantly higher.

Shope also noted that Apple seems relatively unconcerned about the iPad's possible cannibalization of other Apple product sales, following on the theme presented by Apple CEO Steve Jobs during the iPad's introduction that offered a clear segmentation among the iPhone/iPod, iPad, and notebook lines.

TamsIJungle reports (via Engadget) that it received word from wireless carrier Hutchison Austria that the company is planning to offer subsidized iPads for users willing to commit to a two-year data contract with the company. According to Hutchison Austria CEO Berthold Thoma:

Hutchison Austria will be the first Austrian carrier to bundle the iPad. We will do so via our long-established laptop bundle, which offers customers a 333euro rebate if they agree to a 2yr contract offering 5GB of data for 29.90euro.

Thoma also noted that, because the initial supply of iPad models will be Wi-Fi-only, the company will bundle the iPad with a Wi-Fi-based 3G modem for connectivity. Thoma's comments do not necessarily suggest that the carrier has worked with Apple on the subsidized pricing, however, as it would appear simple enough for the carrier to purchase iPad units on its own prior to bundling them for sale to its customers.

Questionable early reports had claimed that Apple was looking to pursue arrangements with Verizon for subsidized tablet pricing in exchange for customer data contracts, although later rumors were relatively silent on the possibility. The only announced carrier offering for the iPad so far comes from AT&T in the United States, which will offer contract-free monthly 3G access plans for $14.99 (250 MB) and $29.99 (unlimited).

Macworld Expo 2010 kicks off this week at the Moscone Center in San Francisco, California. The significance of this year's Macworld Expo has been significantly reduced due to Apple's decision not to participate. Apple cited the diminished importance of trade shows as a way to connect to its customers.

Macworld has tried to refocus the event and even made scheduling changes to accommodate a larger audience. This year's Macworld Expo was pushed into February to avoid the usual conflict with CES, and even includes Saturday floor show hours for the first time.

The expo takes place from February 11th - 13th, 2010. MacRumors will be in attendance and will provide some coverage of the events. Email tips@macrumors.com to contact us. While Apple will not be in attendance, there has been some whispers that Apple may launch MacBook Pro revisions this Tuesday. Benchmarks for unreleased MacBook Pros were discovered just this past weekend.

While the iPad was officially announced in January, the iPad will not be available for purchase until late March. However, it seems some iPads have been seeded into the wild as David Vogler claims to have seen one in a New York City Starbucks (photo).

If you're having trouble waiting for the iPad to arrive, Jess Silverstone, the lead artist for Revolutionary Concepts put together a cut-out of the Apple iPad that you can print yourself.

The cutout is provided in two separate PNG files (iPad Front 664KB and iPad Rear 377KB). Each cutout can fit on standard A4 (8.3 x 11.7 inches) paper, but your printer has to be capable of borderless printing to achieve close to actual iPad dimensions. The real iPad dimensions are 9.56 inches x 7.47 inches x 0.5 inches. They've even included a cutout of the A4 processor you can include for "improved performance".

Here's what it looks like put together:

Meanwhile, if you actually have access to a large format A3 printer, a Taiwanese blogger has put together a PDF that will print to full size.

A Geekbench result posted to their site on February 4th has generated a lot of excitement in our forums. The report seems to reveal the results for an unreleased Arrandale MacBook Pro running at 2.66GHz. Intel officially unveiled the new latest mobile chips at CES 2010 and Apple has been widely expected to use them in their next MacBook Pro revisions.

The MacBook Pro gives a "6,1" model designation and a non-shipping build of Mac OS X 10.6.2 (Build 10C3067). The 6,1 designation has been spotted before in recent builds of Mac OS X 10.6.2. The later build number is also consistent with the kind of interim builds Apple provides with brand new hardware.

The processor is listed as an Intel Core i7 M 620 running at 2.66GHz. The final benchmark score of 5260 compares favorably to identically clocked (2.66GHz) shipping MacBook Pros (3700-4000). The Core i7 M 620 is a high end dual core processor with Turbo Boost and Hyperthreading.

Apple's MacBook Pros are due for updates and Intel's new mobile processors are the most likely candidates. While we haven't heard any solid evidence, there have been rumblings from international resellers that Apple's MacBook Pros supplies have been constrained. Supplies can be constrained for any number of reasons, but the timing does fit with a MacBook Pro refresh.

One of the major announcements alongside the Apple iPad launch was the fact that Apple is now in the chipmaking business. The Apple A4 is a system-on-chip that includes an ARM based processor that is believed to have been designed by the engineers Apple acquired along with P.A. Semi.

In our previous research of ARM based chip technology, we found that a company called Intrinsity was making a name for itself by accelerating ARM CPU designs while reducing power consumption. In July, Samsung announced an Intrinsity enhanced 1GHz ARM Cortex A8 processor called the Hummingbird which was to take on Qualcomm Snapdragon. Intrinsity accomplishes this by simplifying designs which make for smaller transistors which ultimately provides additional power savings.

The key to this and many other performance tricks is the type of logic gate Intrinsity uses: 1-of-n domino logic, or NDL, part of its suite of technologies called Fast14 (named after the atomic number of silicon). Russo says NDL can speed up a logical step by 40 to 60 percent. About a fifth of the A8s functions are benefiting from it, he adds.

What was most interesting to learn, however, was that Intrinsity design team was formerly from Exponential Technology in the 1990s prior to its dissolution.

Longtime Apple watchers will remember Exponential Technology as the company that promised to deliver super-fast PowerPC chips at a time when PowerPC lagged behind their Intel counterparts. A 1996 press release has a quote from Apple describing the Exponential X704 as a "major competitive advantage" for the Macintosh platform. Apple was even a major investor of the company. The relationship ultimately soured, however, when it became clear that Exponential couldn't keep pace with Motorola and IBM. Exponential even filed suit against Apple after they decided not to use the chips.

Now, we don't necessarily believe that Intrinsity is currently working with Apple, but it's certainly possible that their paths may cross again as Intrinsity is applying their techniques to Cortex A9 based technology. The Cortex A9 is likely to power a number of future products both from Apple and other companies.

Apple has seeded a new version of Mac OS X 10.6.3 to developers today. The last seed was released on January 22nd. According to reports, the newest version provides a number of enhancements and bug fixes for QuickTime X, 64-bit Logic, printing and OpenGL.

There are said to be "no known issues" with the latest build, possibly indicating that we may be approaching release. 10.6.3 only began seeding to developers in early January but 10.6.2 saw a comparably short time frame from initial seeding to public release.

The Mac OS X 10.6.2 update was released on November 9th.

MacNN points to a blog post written earlier this week by Phil Bellaria, a director in the National Broadband Task Force at the U.S. Federal Communications Commission (FCC), expressing concern over increasing cellular network congestion and citing Apple's iPad introduction as the spark for renewed fears.

Apple's iPad announcement has set off a new round of reports of networks overburdened by a data flow they were not built to handle. These problems are reminiscent of the congestion dialup users experienced following AOL's 1996 decision to allow unlimited internet use. For months users had trouble connecting and, once they did connect, experienced frequent service outages. The FCC even held hearings on the problem.

Despite the fact that the iPad has yet to begin shipping, Bellaria uses the concerns as fuel for his task force's push to free up additional wireless spectrum for such important and fast-growing uses as wireless broadband.

Reaching an always-on wireless broadband future means that spectrum can no longer remain attached solely to uses deemed valuable decades ago. The broadband plan will suggest ways of moving more spectrum into high value uses, such as broadband access, to help ensure that we don't get stuck in 1997 dialup-style congestion.

AT&T, Apple's U.S. wireless partner for the iPhone and the upcoming service provider for the iPad, has received substantial criticism for its network performance as it has struggled to keep up with surging data traffic demands driven in large part by the popularity of the iPhone. But while AT&T is in the process of spending billions of dollars on its own infrastructure, the FCC reminds observers of the role it will play in the allocation of resources as it attempts to define a national plan for broadband access for an interconnected web of wired, wireless, and satellite technologies.

Yesterday, AT&T announced that it had finally decided to allow Sling Media's SlingPlayer Mobile to stream video over the carrier's 3G network. As part of the announcement, AT&T claimed that it had "worked with" Sling Media to develop a version of the application that was optimized for performance on AT&T's network. Early reports on the approval also included specific quotes from AT&T Mobility CEO Ralph de la Vega claiming that Sling Media had modified the application in response to AT&T's requests.

"The key for us is Sling Media was willing to work with us to revise the app to make it more bandwidth sensitive, "Ralph de la Vega, president and CEO, AT&T Mobility and Consumer Markets, said in a statement. "They made important changes to more efficiently use 3G network bandwidth and conserve wireless spectrum so that we were able to support the app on our 3G mobile broadband network."

De la Vega's statements, however, no longer appear in AT&T's official press release, and Ars Technica has heard from Sling Media, which claims that it did not work with AT&T on the application's approval.

"We didn't change anything," Sling Media's John Santoro told Ars. "AT&T never discussed any specific requirements with us."

Santoro explained that SlingPlayer Mobile has always contained code to adapt the stream quality to the given network conditions. AT&T has been in discussions with Sling since it was first released last year, but AT&T never asked the company to make specific modifications. No changes were made to the app's 3G streaming capabilities between its being barred from AT&T and now.

Sling Media's claims and AT&T's apparent backtracking suggest that AT&T may simply have decided either that SlingPlayer Mobile's video streaming would no longer place an excessive burden on the carrier's network or that its continued refusal to allow such streaming was simply indefensible as expectations for wireless data networks have grown. Consequently, the carrier may have been looking to the SlingPlayer Mobile approval announcement as a venue to encourage future developers of bandwidth-intensive applications to reach out to AT&T to ensure from the very beginning that such applications are optimized for network performance.

Last weekend, book publisher Macmillan won out over Amazon in a battle over eBook pricing, switching to an "agency model" in which book prices are set by the publisher with retailers receiving a percentage (30% in Amazon's case) of the sales price. The move effectively eliminated Amazon's standard $9.99 eBook price for new releases, with Macmillan targeting a range of $12.99-$14.99 for new releases.

Macmillan's negotiations with Amazon were spurred by its deal with Apple for the iPad involving a similar arrangement. While Amazon at the time claimed that it felt that other publishers would not follow in Macmillan's footsteps, other book publishers do in fact appear to be falling into line.

During an earnings conference call this week, News Corp. CEO Rupert Murdoch acknowledged that his HarperCollins book publishing unit has been unhappy with Amazon's control over eBook pricing and noted that HarperCollins and Amazon were about to begin discussions about moving to a similar model allowing for more flexible pricing.

And just yesterday, Media Bistro reported that Hachette CEO David Young has announced a similar plan for his company, marking the third of the five book publishing partners announced by Apple for the iPad to extend the agency model beyond the Apple deal. Young writes:

"There are many advantages to the agency model, for our authors, retailers, consumers, and publishers. It allows Hachette to make pricing decisions that are rational and reflect the value of our authors' works. In the long run this will enable Hachette to continue to invest in and nurture authors' careers--from major blockbusters to new voices. Without this investment in our authors, the diversity of books available to consumers will contract, as will the diversity of retailers, and our literary culture will suffer."

The increased prices will reportedly actually result in lower income for book publishers, serving instead to prevent Amazon from selling eBooks at a loss in order to draw in Kindle customers. In the view of publishers, the move will help maintain consistent eBook pricing and improve the long-term viability of the industry, while also allowing publishers the flexibility and control over their releases to offer eBook releases on the same day as hardcover releases.