MacRumors

Appleinsider has posted an interesting tale of the progression of the Apple iPhone (smart phone) project which has reportedly been ongoing for at least the past three years.

According to the rumor site, Apple reportedly started showcasing a prototype of their proprietary smart phone in the early summer of 2005. At the time they were shopping for both wireless partners as well as contractors. The interface of the phone was based on the one-click simplicity of Front Row along with extensive integration with Mac OS X. This integration came in the form of new .Mac functionality, iTunes syncing, and full iChat functionality.

Two features described in more detail include a "call ahead" feature:

Similarly, a "call ahead" feature would allow users of the phone to pre-record a video clip that could then be transmitted to mobile phone at the receiving end, where it would play before the a call was answered.

and video iChat functionality:

A source familiar with the development efforts said Apple had tapped third parties to lend a hand with certain protocols that would allow for iChat video conferencing between the handset and desktop Macs.

Despite the work done, according to Appleinsider's source, Steve Jobs reportedly was unhappy with the device and insisted on a ground up redesign in order to meet his requirements.

While the details of this report will be difficult to corroborate, some aspects of it correspond with some previous reports:

LoopRumors.com previously claimed that an Apple iPhone would come with iChat AV (videoconferencing capabilities), and in March ThinkSecret reported that Apple's phone project was encountering "significant technical hurdles" and it was being designed "from the ground up".

As expected, Apple has launched New Zealand's iTunes and Online Apple stores.

"Were thrilled to bring the iTunes Store and the online Apple Store to our customers in New Zealand just in time for the holidays," said Eddy Cue, Apple's vice president of iTunes. "With over two million songs, the iTunes Store features the largest catalogue of local and international music in New Zealand, and with the new online Apple Store, it's easier than ever to shop for everything from a personally engraved iPod to a customized Mac."

Individual songs will be priced at NZ$1.79, music videos at NZ$3.59 and most albums at NZ$17.99. More information can be found by reading Apple's press release or by visiting Apple's New Zealand site.

Appleinsider publishes more information relating to Prudential analyst Jesse Tortora's claims that Apple may have a longer term interest in the video game market:

"We think the video game market represents a distinct possibility for Apple, especially considering that it recently announced the availability of video games for its iPod through its iTunes"

Tortura speculates a gaming console device could be "morphed" out of a combination of the existing Mac mini and iTV, as well as the possibility of a handheld gaming device based on the iPod.

Clearly, entering such a competitive market would be difficult, but the analyst speculates that Apple may be feeling some pressure from potential iTunes competitors in the form of movie-download services tied to the latest consoles.

Rumors of Apple's entry into the gaming market are not new, as there have been previous reports of Apple actively recruiting game developers, but in his research note, Tortura reportedly claims that Apple has hired new software and hardware game developers.
Update: iLounge publishes an interview with iPod product marketing director, Stan Ng, who acknowledges there is a team at Apple focused on iPod games, and did the development of two of the current iPod games at Apple. The team is currently working with 3rd party developers to bring more games to the iPod.

Analysts are continuing to weigh in on the circulating rumors about Apple.

Prudential's Jesse Tortora (via Seekingalpha) claimed today that the production ramp has already begun on one of the upcoming Apple phones and should be available for sale late in the 1st Quarter of 2007. The smartphone model, however, is not expected until the 3rd quarter of 2007.

According to the report, Tortora also expects Apple to produce the long rumored wide-screen iPod with target release in late 1st Quarter or early 2nd Quarter.

Finally, Tortora makes an interesting suggestion that "Apple may have interest in entering the video game market longer-term" after claiming that there is new evidence that Apple has hired video game designers.

PiperJaffray's Gene Munster (via Appleinsider) offers his analysis of circulating rumors providing a ranking of likelyhood of rumors for the upcoming Macworld San Francisco and beyond. In order of most likely to least, the rumors include: iPhone production ramp up (10/10), iTV (10/10), Candy Bar form-factor to iPhone (9/10), Wireless Touch-Screen iPod (7/10), keyboarded iPhone (7/10), 4GB/8GB models (6/10), 12" Ultraportable MacBook Pro (4/10), Mac OS X 10.5 release at Macworld (3/10) and iChat Mobile Video/IM on iPhone (2/10).

Apple has acquired Proximity's technology and intellectual property. Proximity is the maker of Artbox workgroup and Artbox enterprise video asset management software.

We are pleased to announce that all Proximity technology and intellectual property, including artbox workgroup and artbox enterprise, was recently acquired by Apple.

Both pieces of software feature integration with Final Cut Pro and can work with Apple's high-end storage area network XSan. Whether Apple will simply re-brand the solutions and market them as a self-contained product or bundle them as part of a forthcoming version of Final Cut Pro remains to be seen.

EETimes reports on comments by Satya Chillara, an analyst with Pacific Growth Equities LLC about NVidia's role in Apple's "next-generation video iPod line".

This same analyst originally reported in July that NVidia had edged out Broadcom for the contract to supply Apple with the graphics chip for their next-generation Video iPod.

This new report now claims that NVidia has delayed the upcoming Video iPod graphics chip which was originally scheduled to tape out in the 1st quarter (calendar year) of 2007. Instead, the chip tape-out has been pushed to Q2 or Q3 (calendar year) of 2007. While the article comments about the negative impact this may have on NVidia financially, it is unclear how this affects Apple's plans for their next generation video iPod.

Rumors of a full-screen Video iPod have been persistent since early 2006 with increasing evidence that Apple is indeed working on such a project.

Macscoop/MacOSXRumors claims that Apple is finishing development on a 12" MacBook Pro described as "ultra-thin":

The new laptop should be even thinner and weigh less than the current models in the MacBook Pro line-up. In spite of this very tiny and lightweight form-factor, the miniaturized MacBook Pro should keep its built-in optical drive and sport a dual-core processor, providing unequalled size/performance ratio in the PC industry, sources told MacScoop.

This "ultra-portable" MacBook Pro is estimated to be priced in the $1700-$1800 range and sport a 12" widescreen display.

The introduction of 12" MacBook Pro would fill a gap left by the 12" PowerBook model, which was dropped during the transition to Intel in early 2006. Apple retooled their laptop models which previously offered 12" / 14" iBooks and 12" / 15" / 17" PowerBooks to a lineup with 13" MacBooks and 15" / 17" MacBook Pros.

One analyst made similar claims in mid-2006. At that time, analyst Benjamin Reitzes stated that Apple was working on an "ultra-portable PC" to be delivered by Macworld San Francisco 2007. Reitzes included comments about incorporating the use of NAND Flash memory to speed up boot times. This concept of Flash-based latops was revisited in September 2006 by Appleinsider -- with expectations that NAND flash would make their way into the next revision of MacBooks due in 2007. While these rumors line up with each other, MacScoop makes no mention of Flash memory in this upcoming "ultra-thin" laptop.

MacScoop/MacOSXRumors cites "reliable" sources for this report and has had a recent history of some accurate reports with predictions of 23" (24") iMacs as well as Leopard info pre-WWDC.

In the latest episode of Diggnation, Kevin Rose (at ~38:30) claims to know some details about the Apple phone from a "solid" source.

According to Rose, little bit of inside info on the Apple phone:

- Going to be coming out in January
- All phone providers
- "It's small as sh*t"
- Don't know anything about the Operating System
- The OS is supposed to be "cool"
- Doing some unique things
- Two batteries, one charger. One for MP3 portion and one for Phone.
- 4GB ($249) and 8GB ($449)
- Flash memory, Slide out keyboard
- Maybe touch screen?

Kevin Rose was co-host of The Screen Savers on Tech TV and later started Digg.com. Last year, he offered last minute rumors prior to Macworld San Francisco which turned out to be accurate. He also predicted the iPod nano.

The design of the Nike+iPod Sport Kit leaves it vulnerable to potential surveillance of the wearer, according to a team led by University of Washington doctoral student T. Scott Saponas.

Their research report describes the potential for privacy and personal security problems if the transmissions of the in-shoe sensor are intercepted. The sensor is designed to transmit a unique code, identifying the shoe and therefore its wearer, to an iPod. The wearer may not realize that the sensor is normally on (it can be switched off), and that another person or monitoring system could track their location from as far as 60 feet away.

The report describes demonstration systems that Saponas and his research partners set up. One such system monitors the signals, identifies the wearer by the unique code, and uploads the data to a server that uses Google Maps to pinpoint and track the wearer's location in real-time.

According to the report, the Nike+iPod designers could have used simple cryptographic techniques to avoid or lessen these potential problems.

The New Zealand Herald suggests that New Zealand's iTunes Store may come in a matter of days. According to the site, Apple will be interviewing with the Herald and a couple other members from the New Zealand press on Wednesday morning.

All we're allowed to do is let you know that it's an interview with a senior Apple person and that that person will be making an announcement.

Of course, Apple's representative declined to comment on specifics citing corporate policy. Recently, a blogger claimed to have found New Zealand flag images on Apple's iTunes content servers.

Last month's Month of Kernel Bugs (MOKB) has concluded, and a total of 10 Mac OS X vulnerabilities has been found. The vulnerabilities were wide-ranging, from a wireless driver exploit to a system call, multiple disk image vulnerabilities, and most recently an AppleTalk vulnerability (among others). Apple patched the first wireless driver exploit along with other unrelated vulnerabilities this week, however all remaining MOKB vulnerabilities remain un-patched.

Interview
MOKB organizer "LMH" spoke to MacRumors about the project. According to LMH, most of the project's time was spent on Linux and the Mac OS, both of which were described as "not hard" to break.

The Linux kernel takes little time to break. I'm more familiar with the code and thus it also takes less time to isolate issues. OS X kernel (XNU) takes less time but depending on the area you're checking, debugging and isolation may require a bit more time (if you take into account that AppleTalk source code is almost unreadable and totally deprecated) [...] I didn't have much time left for working on Microsoft Windows but I've received the most helpful feedback from the MSRC people on potentially interesting stuff to check. Not a huge reference of internal code nor NDA covered documents, but at least enough to start with.

In LMH's point of view, the state of Mac OS X security is not great.

From the technical perspective, OS X security is rather poor, at least when it comes to kernel-land code. This isn't a sign of negligence of Apple, but obviously when you take code from many different places and stick it together, it's prone to problems. Not just new ones but also old issues that 'went under the radar'. [...] (ed note: now comparing MS to Apple) I can say that Microsoft has a more thorough auditing process and investment when it comes to kernel code than Apple. They also have the advantage of having such code being produced within the company. Mac OS X kernel, for example, depends heavily on FreeBSD development. A security flaw in the FreeBSD kernel will likely affect OS X and probably other BSD "flavours"

However, just because LMH is a bit critical of Mac OS X's security, don't call him an Apple-hater.

Taking security arguments apart, I have to say that Mac OS X is a pretty well integrated system. It's tightly packaged [...] and nice looking. I'm an OS X user myself and I certainly feel like Apple has invested long time on tweaking the little details. Now they just have to invest a little more on security matters, but not hiring a 'turnover security firm' to do the consulting that leaves the job half done. That's what failed, IMHO.

First Adware for Mac OS X?
In related news, F-Secure claims to have received what is possibly the first ever proof-of-concept Adware program for Mac OS X. The program, dubbed iAdware, will launch Safari to specified web pages when the user used any number of applications, and installation of the adware did not require admin privileges.

Apple has posted one day sales on their Australia, UK Store, France, Sweden, Switzerland French, Switzerland German, Italy, Austrian, Belgium Flemish, Belgium French, Denmark, Finland, Germany, Ireland, Netherlands, Norway, and Spain stores online:

Don't miss our special one-day shopping event. Friday, December 1st.

Apple is recycling the same Ready. Set. Shop graphic as well as the similar deals offered to U.S. customers on the day after Thanksgiving.

In September, reports emerged that Apple and Contois Music Technology reached a settlement over an iTunes interface lawsuit based on this patent filed in 1996.

Contois sought damages and an injunction against Apple for the infringement of the existing patent. The last word of the suit came in September, when after a 15-hour negotiating session, a settlement was reached but remained confidential:

"We're glad to get back to teaching music and selling musical instruments," said Dan Contois, a brother of David Contois, who works in the 35-year-old family-owned business. "The terms are confidential. We can't discuss them."

Interestingly, the patent lawyer involved in the case issued a press release today commenting about the implications of this patent and suggests that Apple has control of it.

The patent covers the system and methods for allowing users download media from a remote database and playing on a a local device -- essentially the methods for purchasing songs online. According to Starkweather:

"I believe that, with this patent in hand, Apple will eventually be after every phone company, film maker, computer maker and video producer to pay royalties on every download of not just music but also movies and videos.

Metafacts reports on the age demographics of the customers of various computer manufacturers, including Apple.

According to their 2006 Home PC Brand Profile Report, nearly half (46%) of Apple's user base is 55 and older, with only 25% of PC users being over 55.

Apple can claim long-time loyalists, but its future among the young technoliterati is an interesting dynamic

Meanwhile, Gateway has the lead amongst 18-24 year olds (percentage not specified).

MacRumors Poll: How old are you?

Hrmpf reports on Apple's latest patent application which depicts the previous iPod mini casing but with particular attention paid to the materials used in the enclosure.

According to the patent application, Apple suggests the use of Zirconia as a radio-transparent material for part the enclosure:

A portable computing device capable of wireless communications, the portable computing device comprising: an enclosure that surrounds and protects the internal operational components of the portable computing device, the enclosure including a structural wall formed from a ceramic material that permits wireless communications through.

Consideration for radio-transparent material is to allow cellular/mobile phone functionality from the device itself. This is simply further evidence that Apple has been actively considering wireless integration with current iPod devices.

Current iPhone rumors suggest a target date of the first half of 2007 for the possibility of such a device.

After a recent meeting with top Apple executives, Bear Stearns analyst Andy Neff believes that Apple's iTV will go beyond simply streaming video (reported by AppleInsider).

"Though details remain sketchy, Apple emphasized [the] focus of iTV [is] to improve user experience by leveraging its software expertise and implied that there may be features beyond the mere streaming of video content," the analyst wrote.

The iTV is already known to be able to stream music and photos as well, and the possibility of Apple including an internal hard drive in the iTV has already been raised, but the analyst also believes the iTV will have advanced user interface software to further the ultimate goal of improving user experience and simplifying consumers' use of content.

Apple also reportedly (and not surprisingly) has a number of products currently in development that are likely to be introduced over several years. During Apple's September "It's Showtime" event, Apple CEO Steve Jobs stated that Apple was now "in your den... in your living room... in your car... in your pocket", and hinted that that theme gave a "little idea of where [Apple] is going."

According to the Financial Times, Universal, 20th Century Fox, Paramount and Warner Bros, who are all reported to be in talks with Apple to bring their movie collections to the iTunes store, are pressuring Apple to reduce the number of devices movie content from iTunes would be able to play on (namely, iPods).

The studios want to avoid the experience of the music industry, which has yet to recover from years of illegal digital piracy. Apple must introduce a new model for feature film content delivery, said one studio executive involved in the talks. With the average cost of a blockbuster film approaching $100m, movie studios had more to lose than music companies, he added. Were very willing to do a deal but were keen to get some concessions from Apple that will account for the differences between the value of music and television content and feature film content.

Currently, Apple's usage rights allow downloadable content to be played on an unlimited number of iPods as well as up to 5 computers, although DVD burning is limited to archiving purposes only (DVD-Video burning is not supported).

Disney sold 125,000 movies in its first week of operation on the iTunes store. While still small in comparison to DVD sales, Disney expects digital sales to add $50 million in revenue to its bottom line in the first year on the iTunes Store. The continued success of movie sales may make arguments for restricted usage rights fall on deaf ears to Apple executives, who would view such arguments as nit-picking a successful program.