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TheAppleBlog
TheAppleBlog, published by and for the day-to-day Apple user, is a prominent source for news, reviews, walkthroughs, and real life application of all Apple products.
http://theappleblog.com
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Live Coverage of Apple's January 27 Media Event

Tomorrow morning at 10AM PST Apple will be holding its “Latest Creation” Media Event. TheAppleBlog will be there providing you a steady stream of updates on everything announced.

You can get your live coverage fix via two methods tomorrow.

TheAppleBlog Live — This is the fastest way to get updates and the most interactive. In addition to our own updates (with text and photos), you can send in a comment/thought/observation and if we feel it's relevant, we'll post it for the thousands of others reading the updates. Our coverage will start around an hour before the event begins.

TheAppleBlog Twitter — We'll be tweeting updates here, so be sure to follow@theappleblog.

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The Coronation of Steve Jobs, King of Content

Tomorrow’s event will be a big day for Apple, and a big day for those of us who make our living following the company’s every move and picking up the bread crumbs it drops along the way. At the very least, it seems certain that they will unveil some kind of game-changing tablet-type device, be it a MacBook Slate or a large-format iPod touch, or something altogether new.

The format the new hardware takes will actually be only the superficial impact of tomorrow’s announcement, though. What will really amaze, and what will matter far more for the future of Apple and the personal electronics industry, will be the content deals that are announced alongside the launch of the new device. If the deals go anywhere near as predicted, Steve Jobs could be crowned the new king of all media.

Alright, so maybe I’m overstating things a bit, but not by much. The story of how Apple’s iTunes affected the music industry, and gave the company an amazing degree of control in setting policy and pricing splits for digital music distribution is well known. It is widely accepted that record companies begrudgingly acquiesce to Apple’s demands, although occasionally they demand a concession, like the iTunes price policy change that accompanied the move to DRM-free music files.

Even now, Apple is reportedly trying to use the same strong-arm tactics on providers of television video content who hawk their wares in the iTunes store. MacRumors reports that the Mac-maker is urging TV networks to lower the per-episode price of content from $1.99 to $1, as part of its selling strategy for the tablet.

If the tablet proves to be even half the multimedia wunderkind it is being hailed as, other media providers can expect the same kind of pressure brought to bear. The book, magazine and newspaper industry in particular stands the least chance of resisting Apple’s power grab, since at this point it’s already looking for a life raft to save it from a daunting future steeped in decline. Some rumors are now circulating that the tablet will ship with a built-in Barnes & Noble bookstore, but whatever the outcome, you can bet Apple will have significant support from magazine and newspaper providers looking for a lucrative alternative to print.

Where Apple has the advantage, even if it is seen as an unsavory source of salvation by those wary of what its done for the music industry, is that it isn’t the Internet. People almost invariably like things that are free, and the Internet makes free easy. The only thing people like more than free is easy, and Apple’s distribution method makes things very easy, especially if the iTunes store is married to an extremely light and thin portable device with a decent size screen and a range of connectivity options.

Selling through Apple also takes a lot of the backshop issues out of the hands of providers. They no longer have to worry about setting up advertising, controlling access, preventing piracy and security exploits, etc. And the revenue picture becomes much more clear, with a per unit price that stockholders and stakeholders alike can easily understand. Taking the long view, siding with Apple makes sense, even if the upfront price is quite steep in terms of power dynamics.

So will Steve Jobs inherit a kingdom tomorrow? Not quite yet, I think. More like he’ll take control of quite a few lucrative fiefdoms, but it’ll take a little longer to unite the entire media nation and declare himself monarch. Make no mistake, though, this is what the tablet will accomplish in the long run. It’s the inherited legacy of the iPod and iPhone, in fact, and this is simply the next building block. Fancy gadgets are lovely, but what draws customers to those shiny screens is the content that they’re displaying; control the content, and you control consumer spending.

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7 for 7: Last Chance Expectations and Predictions for the Apple Tablet
This is the seventh and last in a series of 7 posts in the 7 days prior to Apple's January 27 media event in which I explore various possibilities for an Apple Tablet and other potential announcements.

Well, here we are. One more day until Apple holds its Latest Creation event, when all the rumor and speculation about an Apple Tablet will be subject to scrutiny. I won’t be left out. Over the last seven days (including today), I’ve tried to give some thoughtful analysis about what to expect from Apple at tomorrow’s announcement, so you’ll soon know how successful I was. Instead of recapping the previous six days, which you can access here, I’m taking a different approach with my final predictions.

If I were to put myself in Steve’s shoes and outline a keynote for this event, I think it would look something like this.
- Mobile: Today we’re here to talk about our mobile products, and we’ve got an amazing new product to share with you. I think you’ll be blown away.
- Macbook: Record sales in the quarter, strong growth in consumer/retail and education, outpacing the competition. New models with faster processors, more memory, more storage, and more multi-touch. Available immediately.
- iPhone/iPod touch: Crazy growth domestically and internationally. Far exceeding our wildest expectations. Totally reinvented the smartphone market. Massive market share and growing. New hardware models in June. iPhone: better camera, more storage, support for Verizon, same pricing. iPod Touch: camera, video, more storage, same pricing.
- App Store: Billions and billions served. Here are some great examples (show a few including games and apps with hardware additions like Square). Really terrific developer community. We’ve let you down. Here’s how we’re going to do it better. More explicit guidelines about what we’ll approve and what we won’t. Decreasing lead times to get apps launched. Better communication with reviewers via new web tool including chat.
- iPhone OS: Announcing new version. Better overall performance (speed + battery life), new navigation options (integrated homescreen, landscape view of icons, easier way to jump between apps), multitasking, streamlined settings management. Free upgrade for iPhone, $15 for iPod Touch. Available to developers today, consumers in June.
- MobileMe: Over x millions of users. Great way to keep devices in sync, especially contacts and calendars. Innovative features like Find My iPhone. Expanding MobileMe to “your iLife in the cloud.” Store music, movies and photos by syncing with iTunes and iPhoto. Backup that can be accessed and streamed from anywhere. Now includes feature set of iWork.com, with browser-based editing of all file types. Available immediately.
- iTunes, iPhone, Apple TV, MobileMe: Great ecosystem for accessing digital content. Complete rethinking of how they all work together. Easier sharing and seamless movement among devices. Software updates will being appearing soon.
- Our Latest Creation: iPad tablet computer. 10″ multi-touch display, very thin, just one button. Feels great in your hand, believe me. Beautiful, isn’t it? Incredible way to enjoy digital content: movies, music and photos, but also ebooks and digital periodicals. Solutions for all sectors of publishing (show examples: NYTimes, People, Newsweek, textbook). Front-facing webcam for iChat video conferencing. Combo docking station + keyboard. New OS X based user interface. Apple Developer Tools (Xcode, etc.) + new emulator. Support for all existing apps, plus updated app spec to optimize for tablet. Available in March in two models: Wi-Fi only for $899, 3G data with 2-year contract with AT&T or Verizon.
If this prediction is even remotely close, Apple will have hit a home run. How will I do? Check back after the event for my 7 for 7 recap and scorecard to see how I did. In the meantime, here is the full complement of 7 for 7 posts.
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Did Apple's Latest Keyboard Update Make Things Worse?

Barely a week into the New Year I wrote an article entitled Magic Mouse Drains Keyboard Batteries. The clue is in the title. According to reports on the Apple Support forum, people were discovering that their diminutive Apple wireless keyboards were suddenly chewing through battery life faster than a first generation iPod in 2010. The Magic Mouse was blamed, and naturally, we wailed and gnashed our teeth.

Well, last night, Apple released version 1.1 of the Aluminum Keyboard Firmware via Software Update. And as a man almost ready to buy Energizer shares (anything to try to win back the cost of paying for high-performance batteries every week) its description sounded very promising.

"This firmware update improves battery performance of the 2007 aluminum Apple Wireless Keyboard when used in combination with other bluetooth devices (eg. Magic Mouse, some bluetooth headsets) and addresses an issue with the 2007 aluminum Apple Keyboard and the 2007 aluminum Apple Wireless Keyboard where a key may repeat unexpectedly while typing. The update also addresses other issues."

Promises Promises; the Aluminum Keyboard Firmware Update

I can't say I've ever experienced the "key repeat" problem but I most certainly have watched in dismay as my keyboard greedily depleted — in record time — every expensive battery I put in the thing. (Remember that scene in My Stepmother is an Alien when Celeste sucks the flashlight batteries dry? Exactly the same.)

Coincidence?

Not unexpectedly, the update required a restart — but that was a trifling inconvenience in return for longer battery life! In fact, it was only a few days ago I put in a fresh set of expensive Lithium batteries and I wasn’t eager to have to buy more any day soon. Imagine my surprise when the following message popped-up.

Shocking! Annoying, too. Prior to the update I could coax 9-14 days out of my batteries. The current batteries have been in for only three days and I'm being told they're on the way out? Surely that’s no coincidence.

So what's happening here? Bad batteries? Or could it be that Apple's update has made things worse?

Mixed Results

I headed back to the Apple Support pages to see what was being said. The experience of other Magic Mouse / Wireless Keyboard owners is so far somewhat mixed. Here's what Creator2456 reports:

Did the firmware update […] The keyboard also REFUSES to stay powered on after the update. Already tried several batteries so it is not a power problem. The LED will light when I press the power button and then turn off within 5 seconds without pairing or anything.

Conversely, here's a more ebullient comment from Xorgoo:

It works ! My alu keyboard (3 batteries) is reborn! 1% lost during the night, compare to 10% before.

And then there's this warning from Freekarrot:

This update won’t work on recent 2-cell AWKs, which are heavily affected by the bug as well. Letting out an update just for one of the affected devices is ridiculous. It means they know what the problem is and how it is solved, but they either don’t know or refuse to acknowledge that ALL AWKs are affected!

Conspiracy theories aside, I really don't know what to make of this sort of incompatibility. (I'm not sure what else to call it — 'Not Playing Nicely Together-ness" doesn't sound very smart; perhaps "malfunction" is better?) I understand Apple doesn't develop its own Bluetooth drivers (that responsibility is left to Broadcomm, the manufacturers of all Bluetooth radios in Apple's machines) but even so, for their own equipment to behave in such a flaky, unreliable manner really isn't the 'Apple Way' to which I have become accustomed. It’s all supposed to ‘Just Work’, right?

Think about it; if Microsoft were to build a bluetooth keyboard and mouse that, individually, worked just fine but, together, played very silly games with battery-life, we would be so quick to tut-tut and shake our heads. We would chuckle, too, adding ever-so-smugly (in the manner many Mac-heads are wont to do when commenting on Windows-PC-based problems) "Well, what do you expect from Microsoft?"

Just prior to the Firmware update, the now-very-happy Xorgoo complained;

More Than 100 days, more than 300 posts, and… nothing.
Apple, you have to do something.
And you should at least give us some news.
Do you think time will cure the trouble ? It won’t…

Well, Apple has done something. We now we have an update, but judging from my own initial experience and fresh comments on the Apple support pages, problems remain. Of course, one is a poor sample — my batteries may have already been too far-gone to benefit from the updated firmware. Maybe.

So now it’s over to you. Have you tried updating your firmware? Has it made any sort of difference? Share your findings with me in the comments below. And please… no comments about how we should ditch our Apple keyboards. I don’t care how shiny your Logitech is.

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Google Voice Arrives on the iPhone, via the Web
Apple can ban all the apps they want, but that apparently won’t stop Google from giving iPhone customers access to Google Voice. As of this morning, iPhone owners can now point mobile Safari at a Google Voice website to gain access to a much more full-featured version of the telephone replacement service.

A mobile browser-based version of Google Voice already existed, but the new one is much more properly a web app than before, and is aimed squarely at providing a better Voice experience to users of Apple’s iPhone. Apple has staunchly refused to allow Google Voice dedicated apps into the App Store, despite earlier claims that Google’s own app had not been rejected, but was merely undergoing review.

That was in July. At this point, it’s fairly obvious that Apple doesn’t want the service on its device, and it’s looking more and more like AT&T isn’t even behind that particular decision, at least not completely. Apple and Google have been in the process of parting ways for quite some time now, as competition between the two industry leaders grows.

Short of reducing the capabilities of the iPhone’s mobile Safari browser, or actively blocking web-based content on the device, there’s little Apple can do to stop iPhone users from being able to access the new app. The app now shows transcribed calls in your inbox, and allows you to play them back. You can dial using a virtual keypad, and make either voice calls or send SMS that way. Google routes the call through your iPhone’s number first as a local connection, and people receiving the call will see your Google Voice number on their call display. Finally, you’ll receive notifications of new voicemail via SMS, including transcriptions of the calls.

There are a few things that the app cannot do, despite using the fancy magic of HTML5 for greater degrees of interactivity. It can’t pull from your iPhone’s contact list, as the original dedicated app could, but instead it provides contact management through a Google Voice address book that is cloud-based and can be accessed from whatever platform you happen to be using.

To access the new Google Voice web app, point your browser to http://m.google.com/voice. Due to Google Voice not yet being available in Canada, I haven’t been able to run this new web app through its paces yet, so chime in and let us know how it performs. Those of you who are using Voice might already be depending on VoiceCentral’s browser based solution for the iPhone. If so, let us know how the two services compare.

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Apple Conference Call: Tablet-free Edition
Well, it was almost free of the tablet. On yesterday’s quarterly earnings conference call, when asked about a new product that might have the impact of the Mac, iPod or iPhone, the response from Apple was that it “wouldn’t want to take away your joy of surprise at our latest creation.” How thoughtful.

Regarding the company itself, the big news was that Apple adopted the new accounting standards. Besides ruining my charts, this means subscription accounting deferred and recognized over 24 months is now up front. Which could mean an end to fees for iPod touch owners upgrading iPhone OS, but probably not, and not much for everyone else. What matters is how Apple products are selling. Sales of the Mac and the iPhone are way up, while sales of the iPod are down a little.

Macs

According to Cupertino, 3.362 million Macs were sold last quarter, a new record, and one that works out to a 33 percent year-over-year gain and nearly double the 17 percent growth rate of PCs. The new iMac led the way with a 70 percent increase in sales over the same time last year. Unfortunately, Mac Pro sales seem to be suffering. Apple sees the Mac Pro as an “economically challenged area” at present, and the company is “hoping” for, but not projecting, improvement.

iPhones

As for the iPhone, 8.737 million units were sold, also a new record. AT&T is a “great partner,” Apple said, and offers a “great experience” for the majority of customers, which apparently does not include me. Regarding the App Store, it’s a great success, and the approval process is fine, too. Some 90 percent of apps are approved in two weeks, and the “noise is higher than the reality” about problems. China is the focus of a lot of attention for Apple and the iPhone, with 200,000 units activated as of this year. It’s about “building brand” right now.

iPods

The bad news is that the “traditional” iPod is in decline. Overall, iPod sales were down 8 percent year over year, to 20.97 million last quarter vs. 22.72 million a year ago. The good news — great, really — is that non-traditional iPod touch sales were up 55 percent year over year. That means the iPod touch and iPhone are probably selling in about equal numbers.

A few additional notes of interest:
- Nearly 700,000 Macs were sold in 283 Apple Stores and about half of the buyers “never owned a Mac before.”
- Apple has $39.8 billion in cash, up nearly $6 billion from last quarter.
- Regarding that cash, Apple usually never comments on why it holds so much. Today, it was said that “nothing is forever.” Crazy Nintendo buyout rumor, anyone?
- Mac sales for the quarter saw 40 percent growth in Italy, France and Spain, and 100 percent in China
- “No comment” on the Nokia legal battle.
Finally, as Apple execs said several times, “stay tuned” until Wednesday for the latest “creation,” which will be covered by TheAppleBlog, too.
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7 for 7: Home Controls on the Apple Tablet
This is the sixth in a series of 7 posts in the 7 days prior to Apple's January 27 media event in which I explore various possibilities for an Apple Tablet and other potential announcements.

The unlikeliest of all the features I’m hoping for in an Apple Tablet–home controls–made it to the penultimate post in the 7 for 7 series (tomorrow’s article will be a recap and will address some broader concepts about Apple’s mobile strategy). Unlikeliest? I’ve seen very little in the way of rumors or speculation that Apple is intending to include support for home controls in the iSlate, iPad, Canvas or you-name-it tablet device now widely expected to be unveiled on Wednesday. Yet its one of those out-of-the-blue kinds of things that would allow Apple to both surprise analysts and pundits alike, and to totally disrupt the current home controls market while opening it to the masses. So allow me to dream for a day before the reality of Wednesday’s announcement brings me back to earth.

First off, we should probably define home controls, which is also known as home automation. Home controls is the automation of many household appliances and services, such as lighting, temperature, audio-video, and security, among other systems. These systems are integrated into one central control unit, which can then be accessed by multiple devices on the network. Home controls give residents the ability to turn lights on and off, increase or decrease your thermostat’s temperature control, or select options on your home entertainment center.

Home control systems have become commonplace in luxury homes because of the convenience they offer, but are out of reach for most homeowners because of cost. Companies like Savant and HomeLogic offer an impressive array of control devices, from wall-mounted and wireless touchpads to sleek system controllers and even digital furniture. Control4 has successfully attempted to make full-scale home automation systems more affordable, but their system can also be a bit pricey as it requires many custom components. My brother has a Control4 system in his new home, and I love how it makes distributing audio a breeze. All three companies, and others, offer home controls iPhone apps, as central servers can often be accessed via Wi-Fi.

Devices in your home must also be controllable, which means they typically need some form of actuator. The high-end companies offer their own solutions, but there are industry standards for communications like X10 which drive down the cost. Any device, like a light switch, can be retrofitted to support X10, and communication signals are sent over existing electrical lines. Yet such controls have yet to hit the mainstream, in part because they are somewhat technically advanced and still considered a luxury. However, as energy consumption becomes more important and the cost of home control equipment goes down, more and more people will consider home controls as a serious option, especially if government incentives that support such devices gain traction.

Apple and its developers have ventured into various aspects of home controls. Apple offers its Remote app in the iTunes App Store to control iTunes, Apple TV, and Airport Express audio. The aforementioned home controls companies have released iPhone apps as part of their solutions. And there are a few Mac-based home controls systems on the market, including Shion and Perceptive Automation’s Indigo, which communicate with X10 and other automation standards and devices.

The reasons I want to see and think there is an outside chance that home controls a part of the tablet announcement are: 1) positioning of the device as a new kind of home computer or room-to-room mobile; 2) the huge market opportunity that home controls represents; and 3) my own imagination about what Apple could do with a multi-touch interface that controls my home’s functions. But the reasons not to expect it are perhaps stronger: 1) this positioning competes too much with a larger opportunity to be a digital media device; 2) a successful home controls strategy would require too heavy a reliance on a now fragmented market for hardware peripherals; and 3) frankly, Apple has too many other ways to excite and engage customers via multi-touch interface.

I’d really, really like to believe that Apple will aggressively address the home controls market, starting with the launch of the tablet on the 27th, but I don’t think that’s going to happen. For some entrepreneurs out there, however, I think the tablet represents a new opportunity to develop new, or better commercialize existing home controls solutions using Mac hardware for control center and user interface functions, x10 and related hardware for device control, and system integration services to pull it all together. If Apple doesn’t do it, someone should.

Related GigaOM Pro Research:
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