MacRumors

DailyTechRag.com mixes some creative speculation with comments from Synaptics.

Synaptics first gained recognition for supplying the click-wheels for Apple's earlier iPods. More recently, they made headlines with a concept phone called Onyx which demonstrated a technology called "ClearPad" -- "a thin, high resolution capactitive touch screen that can be placed over any viewable surface."

Synaptics became the obvious source of the impressive touch-screen technology that was demoed on the iPhone, but Synaptics hasn't said one way or another if they are working with Apple. Regardless, there's growing industry interest in this multitouch / capacitance-based technology.

There has been speculation that Apple may adopt this touch-technology more broadly across their Mac platform. Synaptics' Clark Foy doubts that full screen touch sensitive displays are coming soon, for both cost and practical issues:

"I think that to make the entire display touch sensitive will be very expensive. You're talking about altering the whole user paradigm of having your hands down on some user input device and looking at the screen."
...
"You might want to do that a few times but you don't want to sit there and do it for 25, 30 minutes at a time".

Instead, Foy suggests that perhaps "simple onscreen controls that show up on the edge of the display" may be a more feasible direction and that Synaptics was already working on that sort of technology.

DailyTechRag suggests that Apple could take advantage of this sort of technology for a touch-sensitive dock, but it remains purely speculative. However, interest in this technology is clear, and with increasing availability, we could certainly see this integrated into future computers/displays.

Yesterday, Apple sent out short notices to their iTunes partners who provide the music content to the iTunes store. The notices let partners know that they would soon be able to offer DRM-free music and DRM-free music videos to customers through iTunes.

Many of you have reached out to iTunes to find out how you can make your songs available higher quality and DRM-free. Starting next month,iTunes will begin offering higher-quality, DRM-free music and DRM-free music videos to all customers.

The new unrestricted format appears to be open to any publisher who is interested. Apple and EMI first announced earlier this month that they would be distributing DRM-free EMI songs via iTunes for $1.29/song with higher quality settings. The first of these new songs are expected in May.

In the earlier press release, it was revealed that Music Videos would also come DRM-free from EMI but with no change in price.

Mozy.com announced last week the availability of a public beta for a Mac version of their online backup service.

The services is described as "the first unlimited online backup service for Mac users worldwide."

Designed as a consumer service, Mac Mozy leverages Apple's innovative Spotlight Search technology, allowing users to easily select the types of files they want to back up. The service installs quickly and runs quietly in the background. Backup speeds vary from user to user, largely determined by the upload speed of the consumer's internet connection.

Mac Mozy offers encrypted files, incremental backups and block level differentials. 2GB trial is available for free, while unlimited service is available for $4.95/month. Files may be retrieved over the internet or on DVD with next-day delivery.

With Fred Anderson's recent statement claiming he warned Apple CEO Steve Jobs of the financial and legal repercussions of his backdated option grant, SiliconValley.com reports that the SEC may have renewed interest in Jobs.

"The SEC would typically find (allegations such as Anderson's) important," added Kathleen Bisaccia, former chief of enforcement for the SEC in San Francisco.

[...]

Lawyers familiar with the case say Anderson's statements could prompt government lawyers to examine whether Jobs made any false statements to investigators. "From a due diligence perspective, you'd have to look at it," said one former prosecutor familiar with securities fraud probes.

The article goes on to point out that Mr. Anderson's own conduct could come under further scruitiny. Lawyers familiar with the case have reported to SiliconValley.com that Anderson took his 5th Amendment right not to testify during the investigation. Therefore, his election to disclose this information in a formal press release after he settled with the SEC is quite interesting indeed.

The SEC has not yet formally responded to Mr. Anderson's statements, although Apple's Board of Directors has expressed confidence in Mr. Jobs.

The MPAA is committed to fair use, interoperability, and DRM, according to a report by Arstechnica. The statements, made by MPAA boss Dan Glickman this week at a LexisNexis conference on DRM, indicate a migration of thinking by movie studios.

Amongst the ideas proposed by the MPAA was a plan to let consumers rip DVDs for use on home media servers and iPods. However, Ars notes that the plan is not without caveats, and the plan is still in its infancy. For one, it appears as though the movie studios would want Digital Rights Management (DRM) applied to any ripped movies.

I asked him specifically about DVDs, which are currently illegal to rip under the DMCA, and how the law would square with his vision of allowing consumers to use such content on iPods and other devices. "You notice that I said 'legally' and in a protected way," Glickman responded, suggesting that some form of DRM would still be required before the studios would sign off on such a plan. He noted, however, that no specific plans have been made.

However, the MPAA does have its sights on making DRM more inter-operable.

In his speech, Glickman said that the industry needs "a collective philosophical commitment" to move forward on issues of interoperability and authorized use, and said that the MPAA has now made that commitment. He called on other companies in the industry to sit down and work out a solution. Though he never mentioned Apple by name, it's clear that the Cupertino-based company was number one on the list of companies that need to get involved; whether interoperable DRM and legitimate DVD ripping actually mesh with Apple's own business priorities is another question, though.

Apple recently made a deal with EMI for DRM-less music tracks to be sold through the iTunes Store. However, many analysts believe that such a deal is unlikely to succeed with movie studios. While Apple has signed up a number of movie studios to provide content for the iTunes Store, only Disney-owned companies provide new releases, perhaps highlighting the work still left to be done in the online movie market.

Reuters reports on comments by Apple's Steve Jobs about the possibility of subscription-based music sales for iTunes.

According to Jobs "never say never, but customers don't seem to be interested in it". The article suggests that he is unlikely to give into pressure from record labels to offer a subscription model for music on iTunes.

The news comes as Apple begins re-negotiating contracts with the major record labels for the music content on iTunes. Despite recent rumors that Apple was seriously considering a subscription based model, Jobs insists that "people want to own their music." This has been a consistent stance for Apple since the launch of the iTunes store.

Meanwhile, Apple is expected to push for the elimination of digital rights management protections (DRM) on more songs. EMI and Apple first announced that EMI's catalog would become available on iTunes without DRM in May. According to Jobs the other music companies are "thinking very hard about it right now."

"We've said by the end of this year, over half of the songs we offer on iTunes we believe will be in DRM-free versions," Jobs said. "I think we're going to achieve that."

Apple made some interesting comments today during their Q2 Financial Results regarding their plans with the iPhone and Apple TV in the coming months.

The webcast was opened with a prepared statement, where Apple describes how they are planning to use subscription based accounting to document the income from the iPhone as well as the Apple TV. This means that income from these devices will be spread over a 24 month period from an accounting perspective.

Their reasoning behind the shift was due to plans to continue to develop new software features and "entirely new applications" and incorporate them into the iPhone. "We want to provide many of these new features and applications at no additional charge to users."

Similarly, they stated that periodic updates and enhancements will be provided at no charge to Apple TV customers.

Again, this has no effect on customer prices or purchasing and simply reflects a shift in internal accounting at Apple, but the plan for future updates and "new applications" for the iPhone to be delivered as free updates was somewhat revealing.

Apple released their second quarter 2007 financial results today.

Apple posted revenue of $5.26 billion and net quarterly profit of $770 million, or $.87 per diluted share. This compares to revenue of $4.36 billion and net profit of $410 million in the year-ago quarter (Q2 2006).

Apple shipped 1,517,000 Macs and 10,549,000 iPods this quarter, representing a 36% increase in growth in Macs and 24% increase in iPods compared to the year-ago quarter.

"The Mac is clearly gaining market share, with sales growing 36 percent -- more than three times the industry growth rate," said Steve Jobs, Apple's CEO. "We're very excited about the upcoming launch of iPhone in late June, and are also hard at work on some other amazing new products in our pipeline."

Apple will broadcast the financial results live at 5pm ET. Highlights posted below.Conference Call Notes

iPhone is "years ahead of the competition". Plan to continue to develop new software features and entirely new applications and incorporate them into the iPhone. We want to provide many of these new features and applications at no additional charge to users. As a result, Apple will be accounting for the iPhone income over a 24 month period rather than an up-front amount.

Plans to periodically provide periodic enhancements and updates at no charge to Apple TV customers, so Apple TV will be accounted for with the same 24-month linear spread.

Q/A:

The reason why Apple TV will be accounted for on a subscription basis. A number of ideas/improvements to the Apple TV which will be deployed in the future.

Q: How should be think about the potential of iPod in face of iPhone. How do you think the delay on Leopard will have an impact on Mac sales.
A: Re: iPod. No obvious effect on iPhone announcement on iPod. In terms of Leopard, we are shipping the best Macs we've ever shipped before. The upgrade to Leopard is simple/straightforward to do, don't know if customers will delay or not.

Q: Given the lead time for the iPhone announcement, any advantage on ramping for June?
A: Working hard on iPhone. Can't predict the ramp at this point.

Q: Pre-orders for iPhones?
A: Currently not, we will announce later the date at which we are taking orders.

Q: Your retail staff is typically waiting for products. Are they going through training now?
A: A number of things are different. Sometimes products are secret until announcement. iPhone is different in that it was preannounced.

Q: So they will be fully trained at day 1?
A: They are putting a lot of energy into the launch.

Q: Fully staffed support for the product?
A: We have award winning support for the Mac and iPod and going after the iPhone with the same rigor.

Q: Any more distribution partners re Best Buy / Circuit City?
A: Best Buy to over 200 stores now. will take place by the fall. We are very excited to do that. Still determining Circuit City role.

Q: Any uptick in professional customers?
A: We do think that CS3 has delayed pro customer purchases. Too early to tell.

Q: Why not passing along more component savings during the quarter?
A: We believe our products are very competitively priced.

Q: On the new EMI deal. Assuming some of the other labels join with there be any change in iTunes revenue?
A: Our philosophy has been to run the music store as a little over break even. We think that selling music/videos helps us sell iPods/accessories.

Q: On the channel side, direct sales vs indirect mix?
A: The direct sales (online, stores, and direct) was 50% in the quarter and close to expectations.

Q: iPhone worldwide?
A: Europe: 4th Calendar Quarter. Asia: 2008.

Q: iPhone sold where?
A: Cingular stores, Apple.com, Apple stores.

Q: Better understanding of the internal design strategy. With the drop in NAND flash, has that influenced product design and what you plan on introducing in the future?
A: We don't comment on the future products.

Q: On Japan, they continue to lag/be flat. What are you going to do?
Q: Under expenses, you're guiding expenses up a little, what plans on programs?
A: Japan is very challenging market for us. The MP3 market isn't growing, and stable marketshare for iPods. We have a number of initiatives. Mac/PC ads. The only major market that we are not doing as well in. Very frustrating. Continuing to invest for long term growth. Increasing spending in our engineering. Also in other marketing, and stock based compensation.

Apple has released a press release regarding Fred Anderson's public statement yesterday. The press release reads:

Apple Board Members Bill Campbell, Millard Drexler, Albert Gore Jr., Arthur D. Levinson, Eric Schmidt and Jerry York today released the following statement

We are not going to enter into a public debate with Fred Anderson or his lawyer. Steve Jobs cooperated fully with Apples independent investigation and with the governments investigation of stock option grants at Apple. The SEC investigated the matter thoroughly and its complaint speaks for itself, in terms of what it says, what it does not say, who it charges, and who it does not charge. We have complete confidence in the conclusions of Apples independent investigation, and in Steves integrity and his ability to lead Apple.

Engadget mobile posts an internal AT&T employee Q&A document on Apple's upcoming iPhone.

The document essentially rehashes known information but the highlights includes:

Availability June 2007
4GB $499, 8GB $599.
Available in Cingular company-owned retail stores, direct mail, Apple stores, and Apple.com
"No subsidies are being offered on the phone at this time"
Access to Cingular's MyAccount via the device and the iTunes site.
Rate plans will be detailed closer to launch

Samsung has announced a 120 GB 1.8" Hard Drive, suitable for use in Apple's full-sized iPods. Currently, Apple's high-end iPod features an 80 GB drive.

Seagate also offers a 120 GB 1.8" Hard Drive, and Toshiba currently maxes out at 100 GB in the 1.8" variety.

Some recent rumors have indicated that Apple may be toying with the idea of going to an all-flash based lineup, however such a move would make high-capacity iPods impossible at a reasonable price point, even despite plummeting flash prices.

In an interesting twist to the high-profile stock options backdating probe that has been ongoing for over a year at Apple, former CFO Fred Anderson is claiming that he warned Apple CEO Steve Jobs about the financial and legal repercussions of his backdated option grant, and that Jobs had given him assurances that the grant was board-approved.

The Wall Street Journal (Paid Subscription Required) has Mr. Anderson's full statement, which in part reads:

Fred was told by Steve Jobs in late January 2001 that Mr. Jobs had the agreement of the Board of Directors for the Executive Team grant on January 2, 2001. At the time Mr. Jobs provided Fred this assurance, Fred cautioned Mr. Jobs that the Executive Team grant would have to be priced based on the date of the actual Board agreement or there could be an accounting charge. He further advised Mr. Jobs that the Board would have to confirm its prior approval in a legally satisfactory method. He was told by Mr. Jobs that the Board had given its prior approval and the Board would verify it. Fred relied on these statements by Mr. Jobs and from them concluded the grant was being properly handled.

The SEC has yet to respond to these specific allegations. A previous report by Mercury News indicated that there has been a lack of evidence to support criminal charges against Mr. Jobs.

Anderson has recently settled with the SEC regarding his involvement in the ordeal, having admitted no guilt but having to pay a $150,000 fine in addition to paying back the received grants. Separately, the SEC is pursuing legal action against former general counsel Nancy Heinen, which she plans to contest.

AfterCollege.com is advertising a job for a Senior iPhone Support Representative for Apple, Inc. in Austin, TX.

The full time position requires applications by no later than May, as training classes begin that month.

The Sr. iPhone Support Representative is responsible for answering questions for Apple customers and partners. Viewed as an escalation point, the candidate should be able to provide prompt, reliable, and accurate information to customers while maintaining effective communications during conversations by adjusting to the pace and technical level of the customer.

Duties listed include handling escalated questions on both hardware and software issues as well as doing troubleshooting for GPRS/EDGE, Wi-Fi and Bluetooth wireless technologies.

Apple's job site also lists similar offers for iPhone service representatives.

As an iPhone Sales & Service Representative, youre at the core of the customers experience. This newly created position (like a true pioneer) will fuel the iPhone revolution!

Apple's iPhone is expected to be released in "late June" according to the latest reports. Clearly, Apple is going to need support staff in place at time of launch and is making preparations.

As followup to the ongoing backdating story at Apple, Reuters reports that former Apple CFO Fred Anderson has settled with the SEC regarding the backdating issues surrounding Apple.

The settlement includes a $150,000 fine and repayment of option gains of about $3.5 million. This settlement avoids any admission of wrongdoing from the former CFO.

Meanwhile, it appears that the SEC will pursue legal action against former general counsel Nancy Heinen.

Heinen, who will be accused of manipulating one of her own option awards as well as a grant to Steve Jobs, Apple's chief executive, plans to contest the charges, the Journal reported.

The most recent reports have cleared Steve Jobs of any charges regarding the matter.

Update: The SEC has officially announced the above proceedings, and adds that it will not pursue any legal action against Apple itself.

The Commission also announced today that it would not bring any enforcement action against Apple based in part on its swift, extensive, and extraordinary cooperation in the Commission's investigation. Apple's cooperation consisted of, among other things, prompt self-reporting, an independent internal investigation, the sharing of the results of that investigation with the government, and the implementation of new controls designed to prevent the recurrence of fraudulent conduct.

Following an inadvertant peek last week. Apple has released iQuiz trivia game (iTunes Link) for the 5th generation iPods on the Apple iTunes Store:

Get your trivia fix with iQuiz, the fast-paced entertainment trivia game designed in a portable format. Put your pop culture knowledge to the test with questions about music, movies and TV shows."