MacRumors

Fortune reports on a newly-published research effort from Morgan Stanley which analyzes the mobile Internet industry and in the process points to the iPhone's tremendous early growth and Apple's leadership position in the industry.

Based on past performance, according to Morgan Stanley, Apple is in the "pole position" in the race to dominate mobile Internet computing, which is supposed to be for the 2000s what desktop Internet computing was for the 1990s, personal computing for the 1980s, mini computing for the 1970s, and mainframe computing for the 1960s.

According to Fortune's report, Morgan Stanley analyst Katy Huberty sees the iPhone's massive installed base and application offerings as giving Apple a "two or three-year lead" on the rest of the industry. The iPhone's rapid early growth, which has easily surpassed that of other revolutionary Internet offerings, is seen as evidence of the game-changing nature of the device and the potential for continued leadership throughout the rapidly-evolving industry.

The report also provides data backing up what many have previously observed: that iPhone users' heavy use of data in comparison to that of other smartphone users is revolutionizing the mobile Internet industry and driving innovation and growth in excess of the device's market share. According to the study, the iPhone holds only 17% global smartphone market while claiming 50% of mobile app usage and a full 65% of mobile Web browsing.

While it remains to be seen whether Apple can continue its explosive growth in the face of increasing competition in the mobile Internet space, it seems clear that Apple holds a number of advantages that offer it the opportunity to drive the industry for the foreseeable future.

The U.S. Federal Trade Commission (FTC) today announced that it has filed suit against Intel, claiming that the company has "illegally used its dominant market position for a decade to stifle competition and strengthen its monopoly." The complaint focuses not only on Intel's actions in the CPU market to shut out competitors such as AMD, but also on newer, similar actions in the graphics chip market.

The FTC's administrative complaint charges that Intel carried out its anticompetitive campaign using threats and rewards aimed at the world's largest computer manufacturers, including Dell, Hewlett-Packard, and IBM, to coerce them not to buy rival computer CPU chips. Intel also used this practice, known as exclusive or restrictive dealing, to prevent computer makers from marketing any machines with non-Intel computer chips.

In addition, allegedly, Intel secretly redesigned key software, known as a compiler, in a way that deliberately stunted the performance of competitors' CPU chips. Intel told its customers and the public that software performed better on Intel CPUs than on competitors' CPUs, but the company deceived them by failing to disclose that these differences were due largely or entirely to Intel's compiler design.

The FTC is seeking a variety of remedies in the lawsuit against Intel, including orders preventing the company from using threats, bundled pricing, and other tactics to hamper competition or manipulate prices.

The news comes as Intel prepares for a preview event tomorrow highlighting forthcoming Arrandale processors. Speculation as centered on Apple's possible use of these chips in the next generation of its notebook computers, although a recent report claimed that Apple has refused to accept Intel's standard Arrandale package incorporating the company's integrated graphics chipset.

It seems Apple is continuing to invest in advancing web-based technologies to provide a more full feature experienced on the iPhone and iPod Touch. Daring Fireball's John Gruber describes in detail an impressive web framework called PastryKit that was developed by Apple and deployed in their iPhone User Guide web page (when viewed from an iPhone). (Video demonstration)

The article is somewhat technical for casual readers, but essentially, Apple has implemented a few key interface features in Javascript that could make web-apps feel much more like native iPhone apps. These include:

- Completely hiding the address bar
- Allowing for fixed-position toolbars that don't move when you scroll
- Allows for scrolling with momentum so you can quickly scroll long lists

Any iPhone web apps you might have used before have likely demonstrated the same fixed scrolling speed inherent in mobile Safari, and were unable to keep a dedicated toolbar at the top or bottom of the pages. These small changes go a long way towards making web apps feel more natural on the iPhone.

Since these features have been implemented by Apple in Javascript, they could be available to any web developer. Despite big strides in Javascript performance in mobile Safari, however, the performance of their framework still lags on older generation devices.

In the future, it seems likely that we'll see more and more functionality move to the mobile web. In fact, Google Engineering vice president predicted that the mobile web would become the dominant mobile application development platform of the future, despite Apple's massive success with the App Store. Indeed, over the past year we've seen advancements in HTML5/CSS which include support for CSS animations, OpenGL 2.0/WebGL, accelerometers, and even GPS support.

As these technologies become more common and iPhones continue to become faster, it's easy to see how the future web applications could replace some of the current native App Store apps.

On Tuesday, Apple won a permanent injunction against Psystar following summary judgement in favor of Apple's claims of copyright infringement and violation of the DMCA. (court document PDF). The court orders that Psystar is now prevented from the following:

1. Copying, selling, offering to sell, distributing, or creating derivative works of plaintiff's copyrighted Mac OS X software without authorization from the copyright holder;
2. Intentionally inducing, aiding, assisting, abetting, or encouraging any other person or entity to infringe plaintiff's copyrighted Mac OS X software;
3. Circumventing any technological measure that effectively controls access to plaintiff's copyrighted Mac OS X software, including, but not limited to, the technological measure used by Apple to prevent unauthorized copying of Mac OS X on non-Apple computers;
4. Manufacturing, importing, offering to the public, providing, or otherwise trafficking in any technology, product, service, device, component, or part thereof that is primarily designed or produced for the purpose of circumventing a technological measure that effectively controls access to plaintiff's copyrighted Mac OS X software, including, but not limited to, the technological measure used by Apple to prevent unauthorized copying of Mac OS X on non-Apple computers;
5. Manufacturing, importing, offering to the public, providing, or otherwise trafficking in any technology, product, service, device, component, or part thereof that is primarily designed or produced for the purpose of circumventing a technological measure that effectively protects the rights held by plaintiff under the Copyright Act with respect to its copyrighted Mac OS X software.

Psystar must come into compliance by December 31, 2009 at the latest and take the quickest path to compliance. It seems this order marks the end of Psystar as well as the hope of any other company from following in their footsteps.

Psystar made headlines back in April when it started advertising unauthorized Mac OS X compatible PCs. Apple subsequently sued Psystar on grounds of copyright infringement as well as DMCA claims. Apple had won summary judgement in November.

Earlier this week, Newsweek's Dan Lyons as part of his popular "Fake Steve Jobs" blog proposed "Operation Chokehold", a plan for AT&T iPhone users to simultaneously use their devices to place high demand on the carrier's network at a specified time this coming Friday. The proposal comes in response to AT&T Mobility CEO Ralph de la Vega's comments last week regarding poor network performance in Manhattan and San Francisco and the company's plans to attempt to rein in high-usage data customers.

On Friday, December 18, at noon Pacific time, we will attempt to overwhelm the AT&T data network and bring it to its knees. The goal is to have every iPhone user (or as many as we can) turn on a data intensive app and run that app for one solid hour. Send the message to AT&T that we are sick of their substandard network and sick of their abusive comments. THe idea is we'll create a digital flash mob. We're calling it in Operation Chokehold. Join us and speak truth to power!

Cult of Mac reached out to AT&T for comment on the proposed action, and the wireless carrier unsurprisingly noted that it was unimpressed with the tactic, calling it "totally irresponsible".

We understand that fakesteve.net is primarily a satirical forum, but there is nothing amusing about advocating that customers attempt to deliberately degrade service on a network that provides critical communications services for more than 80 million customers. We know that the vast majority of customers will see this action for what it is: an irresponsible and pointless scheme to draw attention to a blog.

Cult of Mac notes that a Facebook page devoted to Operation Chokehold has gathered only approximately 300 interested users, suggesting that the plan may have a difficult time succeeding.

Computerworld reports on data from research firm Net Applications showing that Google's Chrome browser has slipped past Apple's Safari to snag third place in worldwide Internet browser market share behind Internet Explorer and Firefox. The surge comes on the heels of the official release of beta versions of Chrome for both Mac and Linux.

According to Net Applications, which tracks the browser habits of 160 million unique visitors each month to the 40,000 sites it monitors for customers, Chrome's share jumped to 4.4% for the week of Dec. 6-12, an increase of 0.4 percentage points over Google's slice of the browser pie for the month of November.

Chrome's share during the week topped Safari's 4.37%, said Vince Vizzaccaro, executive vice president of Net Applications. "It appears that Chrome has made a substantial surge in usage market share," Vizzaccaro said in an e-mail.

Chrome reportedly experienced a four-fold jump in market share on Mac with the release of the beta version, which marked a milestone release for a product that had previously been available only as developer preview releases. Some of the growth is undoubtedly due to curious users simply trying out Chrome for the first time before switching back to their primary browser, but Chrome's official beta status will likely continue to attract new users going forward.

Benchmarks have shown that Chrome, which is based on the same WebKit engine used by Safari, performs well when it comes to speed on Mac OS X, but is lacking a number of features that will not make their appearances until later beta releases.

Toshiba announced (via 9to5Mac) that they have launched a 64 gigabyte (GB) embedded NAND flash memory module. The new chip offers 64GB on a single chip and will start mass production in the first quarter of 2010.

The reason the largest iPhone (32GB) currently has 1/2 the memory of the largest iPod touch (64GB) is that the iPhone can only house a single NAND flash chip while the iPod touch can accommodate two. The additional space in the iPhone is taken up by its communication hardware. This new advancement should allow for 64GB iPhones and 128GB iPod touches in 2010.

Last year, Toshiba first announced their 32GB NAND flash modules which apparently ended up being used in the latest iPhone revision. iSuppli's teardown identified Toshiba as the supplier of the iPhone 3GS's flash memory.

Chinese site PCOnline.com.cn (via HardMac) leaked details about the upcoming Gulftown 6-core processor that is expected to be used in Mac Pros in early 2010. The processor has been previously referred as the Core i9, though it seems it will instead be designated an extreme (X) Core i7.

The slide confirms that the new processor will be based on a 32nm process with 6 cores and 12 threads. This means a dual configured Mac Pro will have 12 physical cores and 24 logical cores. Also revealed is that the processor will reach a frequency of 3.33GHz. This new 6-core processor should arrive by March 2010, giving a possible timeframe for the next Mac Pro refresh.

AdweekMedia today announced the winners of its "Best of the 2000s" advertising awards, and Apple figured prominently in the selections. Apple took home top honors in a number of categories, including Steve Jobs for "Marketer of the Decade", Apple for "Brand of the Decade", Apple's 'Get a Mac' ads as "Campaign of the Decade", and the iPod as "Product of the Decade".

- Marketer of the Decade (Steve Jobs): Calling Jobs "visionary, iconoclastic and fearless", Adweek points to his role in saving Apple in the late '90s, followed by his remaking of the music and mobile phone industries as his defining achievements. His close collaboration with ad firm TBWA/Chiat/Day is seen as being instrumental in positioning Apple for success.

- Brand of the Decade (Apple): Apple's devotion to "relentlessly improving its products" and its "emotional connection to consumers" paved the way for its selection as Brand of the Decade, with its close ties to iconic CEO Steve Jobs serving to cement its marketing prowess.

- Product of the Decade (iPod): Likening it to the Sony Walkman of the 1980s, Adweek cites the iPod as "redefining" the MP3 player and the driving force of iTunes as being key to Apple's domination of the digital music industry.

- Campaign of the Decade (Apple, "Get a Mac"): The work of TBWA/Chiat/Day's Media Arts Lab, Adweek points to the ads' "neat trick of making the brand look laid back and cool while it mercilessly skewered its rival" as its key to success. The ads, which debuted in 2006 and now number more than 60, are also praised for personifying computers and demonstrating people's emotional connection to technology.

- Out-of-Home Ad of the Decade (Apple, "Silhouettes"): Also the work of the Media Arts Lab, Apple's "Silhouettes" ad campaign launched in 2003 and offered a unique and consistent message of "frenetic happiness" in promoting the iPod. The instantly-recognizable ads are also notable for achieving the "nearly impossible: defining a product without showing what it even looked like up close."

- Digital Campaign of the Decade (Nike Plus): A joint venture of Nike and Apple to link music and athletics, the Nike Plus campaign "defined how a brand can build a self-sustaining platform" simply using the Nike+iPod receiver. Seen as a community devoted to the "product experience", Nike has increased its share of the running shoe market from 48% in 2006 to 61% in 2008 while Nike Plus runners have logged over 100 million miles.

A DigiTimes report about growth in smartphone growth for Taiwanese component suppliers is gaining a fair amount of notice this morning for its citation of a market research firm's claims that Apple is set to sell 10 million iPhones this quarter, well ahead of the record 7.4 million units moved last quarter and above most analysts' estimates, which have been falling into the 8-9+ million range.

Taiwan's smartphone IC [integrated circuit] shipments reached 116.97 million units in the third quarter of 2009, up 30.9% sequentially, and market value amounted to US$613.7 million, up 32.0% sequentially, according to Taipei-based Market Intelligence & Consulting Institute (MIC). In the third quarter of 2009, sales of the Apple iPhone 3GS far exceeded expectations, and sales are expected to reach 10 million in the fourth quarter of 2009. iPhone chip suppliers have benefited from this development.

Apple has worked to broaden its distribution reach this quarter, making forays into China, South Korea, and several other countries while also adding new carrier partners in such countries as the UK and Canada.

Apple CEO Steve Jobs had announced at the original iPhone's unveiling in January 2007 that the company was aiming to sell 10 million iPhones during 2008, a goal the company reached with several months to go. Continued acceleration to the neighborhood of 10 million iPhones sold in a single quarter demonstrates that Apple's strategy of continued expansion of geographic markets, lowered price points, and hardware and software upgrades has so far been successful.

Digital Daily reports on apparent widespread screen flickering problems on Apple's 27" iMac models, coinciding with a slip in shipping times to two weeks for orders placed through Apple's online store. The screen flickering complaints come in addition to earlier reports of machines appearing dead on arrivals or with cracked screens right out of the box.

As I write this, there are 82 pages of complaints about the machine on Apple's support site, all from customers who claim the display of their 27-inch iMac flickers or otherwise distorts sporadically (see video below).

It is unclear at this time whether the shipping delays are due to Apple's efforts to address the issues or simply due to high demand, as Apple has not officially addressed the reasons for the delay.

Reached for comment, Apple offered little in the way of explanation: "The new iMac has been a huge hit and we are working hard to fulfill orders as quickly as possible," a company spokesperson told me. "We apologize for any inconvenience or delay in delivery this may cause our customers." He did not address issues with the machine's display or reports that they might be responsible for the 2 week shipping delay.

A number of the first 27" iMac machines to begin shipping in late October also reportedly experienced Flash performance issues, although the problems were quickly addressed in Mac OS X 10.6.2.