MacRumors

Reuters reports that China Unicom has signed up only 5,000 iPhone users since the device's official launch there late last week. Despite the apparent poor performance of the iPhone, China Unicom Chairman Chang Xiobing remains upbeat about the iPhone, as well as the broader rollout of it 3G network, which has already signed up 1 million customers.

"We are satisified with iPhone sales so far, and we aim to have an additional 1 million new 3G subscribers each month in the near future," he said.

Xiobing also told reporters that the iPhone would help boost China Unicom's revenue for the fourth quarter, although the company will see increased costs due to iPhone subsidies and advertising, leading to decreased profit margins.

Concerns over the lack of Wi-Fi functionality on the initial China-specific iPhone and relatively high prices compared with many other countries had been seen as a challenge for the company, with many users interested in the device likely instead opting for fully-functional unlocked iPhones imported from other countries.

MediaMemo reports that Apple has approached a number of TV networks in recent weeks to pitch its vision of a monthly subscription service that would allow the networks to deliver their content to consumers via iTunes with the idea of replacing consumers' cable packages.

Apple isn't tying the proposed service to a specific piece of hardware, like its underwhelming Apple TV box, or its long-rumored tablet/slate device. Instead, it is presenting the offer as an extension of its iTunes software, which already has a huge installed base: A year ago, Apple said it had 65 million iTunes customer accounts.

A so-called "over the top" service could theoretically rival the ones most consumers already buy from cable TV operators -- if Apple is able to get enough buy-in from broadcast and cable TV programmers.

Apple is reportedly looking to launch the service early next year but faces a number of hurdles, the most significant being that no networks have yet to sign on to the plan. Disney, which holds close ties with Apple CEO Steve Jobs and has been an early-adopter of iTunes distribution offerings, is viewed as the likely leader should the movement hope to gain momentum.

According to the report's sources, TV networks are intrigued by the potential for increased revenue streams that could be afforded by Apple's proposal, but are also leery of harming their existing relationships with the cable companies that carry their programming and advertisers who look to viewership numbers on those systems when targeting their campaigns.

The report notes that other companies, including Amazon, Netflix, Hulu, and Google's YouTube have also been moving into the digital delivery arena, indicating that the time may be right for Apple to make its move.

So Apple's proposed subscription service, which the company has floated in the past, is no longer a huge stretch. Says one executive briefed on the company's plans: "I think they might get it right this time."

UK wireless carrier Orange today revealed pricing plans for the iPhone, which will launch on the carrier on November 10th. iPhone pricing ranges from free with certain plan prices and term commitments up to 539 for the 32 GB iPhone 3GS on a contract-free pay as you go plan.

Monthly consumer plans begin at 29.36 for 150 minutes of talk time and 250 text messages. All plans include "unlimited" data mobile Internet browsing, which is actually defined in a footnote as 750 MB per month, significantly below the unofficial "soft" cap of 5 GB per month used by AT&T in the United States.

Orange's pricing structure is nearly identical to that of O2, which has been the exclusive iPhone carrier in the UK since the device's launch there in November 2007, although there are a few differences. Orange's entry-level offering is unmatched by O2 on a 24-month contract, and offers twice as many minutes and text messages as O2 on the entry-level 18-month contract. Orange is also offering a 122.34-per-month plan for 24 months carrying unlimited minutes and text messages as well as a small amount of European roaming minutes and data. On the flip side, however, O2 has not as yet appeared to employ caps on data usage.

Customers in countries such as the United States where the iPhone is currently offered exclusively through a single wireless carrier have been following the developments in the UK to see how pricing and other contract terms might be affected in countries where exclusive arrangements have been transitioning to multiple-carrier models.

OS X Daily reports on a discovery that Apple's latest developer build of Mac OS X 10.6.2 disables support for Intel's Atom processor. While Apple's exact motive for the change is unknown, the result is that users who have modified their Atom-powered netbooks to run OS X will be unable to easily apply the 10.6.2 update should the change remain in effect for its public launch.

You can't help but suspect this move is Apple's attempt at shutting down the growing and popular Hackintosh Netbook community, since Apple has no product line that runs the Atom itself. Mac OS X runs absolutely flawlessly on much of the PC Netbook hardware, once it's configured you wouldn't know you're not on a Mac. Maybe it's in effort to kill the Atom Hackintoh Netbooks in anticipation of the rumored Tablet? Or maybe it's something totally unrelated?

Apple had apparently initially envisioned using the Atom platform in its tablet computer project, but dissatisfaction with the performance of the platform reportedly led to the company's purchase of ARM chip designer P.A. Semi in early 2008 and a shift to that company's technology for the tablet.

Engadget reports that Apple's discussion forums are starting to see reports of poor performance on the company's new 27-inch iMacs introduced last week. While users have reported several issues, including inappropriate spinning down of the hard drive and corrupted Snow Leopard installations, the primary complaint seems to be poor Flash performance.

The most common symptom seems to be incredibly slow Flash video playback, but people are also claiming that there's a bug forcing the hard drive to spin down, that there's a corrupted Snow Leopard build preinstalled, and even that the problem is bad permissions, which is basically how an OS X user gives up trying to figure things out.

Engadget notes that it has not seen any such problems with its own machines, suggesting that the issues may not be universal. Regardless, the volume of complaints indicates that there may be a relatively significant issue that will require Apple's attention. The company has yet to acknowledge or comment on the issues, but is likely to be studying them to determine possible causes.

RBC Capital analyst Mike Abramsky published a research note today regarding a meeting with several Apple executives, including Chief Financial Officer Peter Oppenheimer, iTunes VP Eddy Cue, and Mac Marketing VP David Moody, covering a number of topics related to Apple's business.

While the executives were tight-lipped as usual about the company's plans for the future, one interesting tidbit that came out of the meeting was the executives' apparent lack of enthusiasm for the "online book/newspaper market" while sharing views that video content would be the next big growth area in media. In both areas, however, licensing and other rights issues are seen as significant hurdles.

After music, video content is expected to be the next "exploding" opportunity, but requires overcoming industry rights dysfunctionality, competing with subsidies (cable box, video), and developing the right consumer "offer". Apple TV, while still a "hobby", is well positioned to benefit from evolving market dynamics. Apple was less enthusiastic about the online book/newspaper market, given unattractive industry structure.

The executives also confirmed comments made during the company's most recent earnings conference call claiming that Apple has managed to maintain its iPhone profit margins and subsidies received from carriers in markets that have transitioned from exclusive agreements to multiple-carrier models.

Despite intensifying competition (Android, RIM, etc.) Apple continues to enjoy strong global carrier interest in iPhone, given high ARPU, low churn. In markets (Canada, Europe) where distribution has expanded to multiple carriers, Apple has sustained its economics (subsidy, margins). 3GS remains popular while $99 iPhone addresses a competitive price point (free in some markets).

The news could temper concerns that Apple might be reluctant to pursue a multiple-carrier model in the United States once AT&T's exclusivity window closes for fear of sacrificing per-unit economics.

Among other topics of discussion highlighted in the report were Apple's view that the Windows 7 launch provides an opportunity for the company to attract new customers and the persistence of the integrated iPhone/iTunes/App Store model as an advantage over other up-and-coming competitors such as the Android platform.

The Associated Press reports on today's launch of the iPhone in China, noting several hurdles faced by the Apple as it attempts to tap into the world's largest market.

Among those hurdles is a lack of Wi-Fi functionality, a restriction that had been imposed by the Chinese government. The restriction was lifted earlier this year, but not until after the Chinese-specific iPhone lacking Wi-Fi had gone into production.

Unicom's iPhones lack WiFi because it was temporarily banned by Beijing, which was promoting a rival Chinese system, according to BDA. The ban was relaxed in May after manufacturing had begun.

A Unicom spokesman, Yi Difei, said the company hopes to have WiFi in the next batch of phones.

"We are talking with Apple and expect the problem to be solved by the end of this year," Yi said.

The lack of Wi-Fi connectivity also puts the spotlight on the new Chinese iPhone's relatively high price, which may result in the new device competing directly against unlocked iPhone 3GS models with Wi-Fi that have been brought in from other countries. An estimated 1.5 million to 2 million such iPhones are already operating on partner carrier China Unicom's network, and new unlocked imports are currently selling on the street for 20% less than the Chinese model when purchased without a contract.

Apple Inc. and Unicom also could face competition from an unusual source: unlocked iPhones brought in from abroad that have WiFi.

There are already an estimated 1.5 million to 2 million such phones in China using China Mobile 3G service that allows Internet access and other features.

Unicom's prices range from 4,999 yuan ($730) to 6,999 yuan ($1,025) for the high-end, 32-gigabyte iPhone 3GS. That is 20 percent above the 5,700 yuan ($835) charged by merchants at Chinese street markets for a 3GS with WiFi.

Apple has so far refrained from offering public sales targets for the Chinese market. An early report claimed that China Unicom had committed to purchasing 5 million iPhones for sale on its network, although the rumor was quickly denied by a spokesman for the carrier.

"The new software for Apple TV features a simpler and faster interface that gives you instant access to your favorite content," said Eddy Cue, Apple's vice president of Internet Services. "HD movies and HD TV shows from iTunes have been a huge hit with Apple TV customers, and with Apple TV 3.0 they get great new features including iTunes Extras, Genius Mixes and Internet radio."

The redesigned main menu offers direct access to recently rented and purchased movies, as well as a wide assortment of other content. iTunes LPs and iTunes Extras are available in full-screen, enhancing the viewer experience for audio and video titles.

The addition of Genius Mixes, a feature first introduced last month with iTunes 9, allows users to listen to automatically-selected playlists generated from their iTunes libraries, while the Apple TV 3.0 software also includes support for listening to thousands of Internet radio stations. Finally, the updated software includes additional enhancements for photo viewing, enabling the Apple TV to take advantage of the Faces and Events features found in Apple's iPhoto desktop application.

The impending release of the updated Apple TV software was suggested earlier today by an update to the iTunes Store Terms and Conditions mentioning the 3.0 software.

Update: Apple has also released iTunes 9.0.2, adding support for Apple TV 3.0, a new "dark" viewing option for Grid View, and additional accessibility support.

iTunes 9.0.2 adds support for Apple TV software version 3.0, adds an option for a dark background for Grid View, and improves support for accessibility.

Update 2: PreCentral reports that iTunes 9.0.2 once again breaks media syncing on the Palm Pre.

Here we go again. Apple has updated iTunes to version 9.0.2 and Palm Pre sync is dead again using webOS 1.2.1, despite Palm's Hurculean efforts to spoof nearly every aspect of USB identification known to mankind. As with previous breakages, iTunes does launch when you connect a Pre with Media Mode, but it doesn't appear as a device on the sidebar.

ifoAppleStore reports that Apple is tweaking several aspects of its retail store operations as it moves into the holiday sales season. Among the changes are an adjustment to color-coded t-shirts for various types of employees and a shift from using Windows CE-based EasyPay mobile checkout devices to iPod touches using barcode scanner accessories and custom point-of-sale software.

According to the report, Apple will abandon its existing policy of having its various classes of employees (such as concierges, specialists, creative, and geniuses) attired in different colors of Apple t-shirts and shift to a single color of t-shirt for all employees. The color of the t-shirt would change over time, but a consistent color for all employees at one time will likely make it easier for customers to identify store employees.

First, Apple will drop the aircraft carrier-like T-shirts that are color-coded to indicate the employees' skills. Visitors have reported that seeing orange, dark blue, light blue, medium blue and black T-shirts is simply confusing. Beginning soon, the entire store staff will wear the same color T-shirt, with that color changing from time to time.

MacRumors has separately heard that Apple is also planning to consolidate several of its retail store positions in order to allow more flexibility in the tasks handled by each sales floor employee.

Apple's switch to the iPod touch as a checkout device will address several issues, not the least of which has been reported frustration on the part of retail store employees over the performance of the current EasyPay devices. The new iPod touch-based systems will reportedly allow for a single pass of the barcode reader to register multiple codes present on many Apple products, speeding the checkout process. The new system will also reportedly allow sales staff to accept cash for transactions.

First, the iPod touch scanner will allow employees to capture data from products that have multiple barcodes using a single pass, including the UPC, Apple serial number and product code, cellular IMEI and ICCI numbers. Second, the new set-up will allow employees to accept cash for purchases without hiking to a central register position.

Apple has been taking several steps to alter the functionality of its retail stores as they remain popular with customers, many of whom are unfamiliar with the company's products. Last month, the company rolled out iPhone Activation Zones to assist iPhone purchasers with picking up and preparing their devices for use in what can be a crowded and confusing retail store setting.

The Terms of Sale have been revised to clarify that you can now use iTunes LPs and iTunes Extras on Apple TV with software version 3.0 or higher.

The Apple TV software was most recently updated in June, bringing the software to version 2.4. The Apple TV hardware was also quietly updated last month with the elimination of the 40 GB model and a price drop on the 160 GB model. Reports at that time indicated that Apple's new iTunes LP format is likely formatted specifically for the Apple TV, suggesting that a software update for the device may be near.

Apple today seeded Build 10C535 of Mac OS X 10.6.2 to developers. The release comes one week after the previous build was pushed to the developer community for testing.

The new 10C535 build reportedly focuses on graphics drivers, trackpad preferences and virtual machine creation while continuing to list no remaining known issues. This suggests that Apple is putting the finishing touches on the update and may roll it out to all users in the relatively near future.

Among the most notable changes in Mac OS X 10.6.2 is a fix for a serious bug involving guest accounts that has resulted in some users losing all data from their regular user accounts. The update will also provide full native support for Apple's new multi-touch Magic Mouse that began shipping today, although the company is also offering separate software updates to allow Snow Leopard and Leopard users to access the full functionality of the device without needing OS X 10.6.2.