Analyst: App Store downloads to increase by 61%, prices to jump 14% in calendar year 2011

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Date: Monday, July 11th, 2011, 04:12
Category: iOS, iPad, iPhone, iPod shuffle, iPod Touch, News

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If you remember your economics class, an old supply and demand chart should pop into your head.

Those charts are applicable.

Per AppleInsider, having recently hit the 15 billion download milestone, a new analysis has found that downloads from Apple’s iOS App Store will increase 61 percent in calendar year 2011, while the average selling price of software will be up 14 percent.

Analyst Gene Munster with Piper Jaffray published on Monday his latest App Store model, including average selling prices, for the official iOS digital download destination. The new numbers reflect Apple’s announcement from last week that more than 15 billion applications have been downloaded by more than 200 million iPhone, iPad and iPod touch users.

Munster estimates that the average iOS user will download 83 applications in calendar year 2011, up from 51 in calendar year 2010. That’s an increase of 61 percent year over year.

“We believe this trend points to the increasing importance of an app store with a broad selection of tested apps to drive device sales,” Munster wrote. “Smartphone users are showing an increasing appetite to use apps to add features to their phones, and iOS has the leading app ecosystem.”

Piper Jaffray’s App Store model also indicates that paid application average selling prices are on the rise in 2011. Munster said the data shows prices up 14 percent year-over-year in calendar year 2011, compared to the 18 percent decline seen by paid applications in 2010.

“After the initial race to the bottom in App Store pricing, we are seeing users pay up to add features and games to their iOS devices,” he said.

Using Apple’s announced figures, the App Store model suggests that 82 percent of applications on the iOS App Store are free, while 18 percent are paid. Those paid applications have an average selling price of US$1.44.

Munster attributed the increase in 2011 at least partially to more expensive iPad applications that are gaining share among App Store downloads. The average selling price of the top 10 iPad applications is US$6.32, up 36 percent from US$4.66 a year ago. Meanwhile, the top 50 iPhone applications have an average price of US$1.61.

The App Store model also shows that iPhone, iPad and iPod touch users are now downloading more than 32.3 million applications per day. That’s nearly triple the 11.9 million-per-day rate of tracks downloaded from Apple’s iTunes Music Store.

Apple does not profit greatly from its iOS App Store, and Piper Jaffray estimates that the company’s 30 percent share of all sales amounts to just 1 percent of its total revenue. More importantly for Apple, though, the App Store drives sales of iOS devices — something that Munster admitted is hard to quantify.

“Even though our qualitative analysis does not factor in the sale of additional devices, we believe the App Store drives device sales,” he said. “We see a virtuous cycle of Apple’s robust app ecosystem adding features and functionality to the iOS devices, which drives sales, which makes the ecosystem more robust, which encourages more developers to write apps, and the cycle repeats itself.”

Stay tuned for additional details as they become available.

Apple working on fixes for posted iOS security holes

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Date: Thursday, July 7th, 2011, 10:25
Category: iOS, iPad, iPhone, iPod Touch, security

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This probably won’t make you feel safer about the security on your iOS device…

Per Macworld,

Apple said on Thursday that it is developing a fix for vulnerabilities that affect its iPhone, iPad and some iPod touch models, a problem that the German government warned could be used to steal confidential data.

The vulnerabilities became publicized with a new release on Wednesday of JailbreakMe 3.0, a framework that allows unauthorized applications to be installed in devices such as the iPhone.

Apple prohibits the installation of applications that have not been approved for distribution in its App Store. But hackers have used vulnerabilities in the iOS operating system that allow the phones to be “jailbroken,” allowing applications not vetted by Apple to be used that are obtained through alternative application markets such as Cydia.

Germany’s Federal Office for Information Security, known as BSI, issued an alert on Wednesday about the vulnerabilities, which it said could be exploited if a user opened a specially crafted PDF document. The issue involves how the iOS parses fronts within the mobile version of the Safari browser.

There is also a second vulnerability that circumvents ASLR (Address Space Layout Randomization), a security feature which mixes up how programs are loaded into memory and makes it more difficult for an attacker.

BSI noted that it would be possible for an attacker using the flaws to steal passwords, banking data and e-mails as well as have access to built-in cameras, intercept telephone calls and obtain the GPS coordinates of a user.

Apple rarely comments on security issues. But on Thursday, Alan Hely senior director for corporate communications in London, said in a statement that “Apple takes security very seriously, we’re aware of this reported issue and developing a fix that will be available to customers in an upcoming software update.”

The BSI wrote that the devices affected are the iPhone 3G and devices running iOS versions up to 4.3.3. Also affected are both iPad models and iPod Touch models running iOS versions up to 4.3.3.

One of the hackers behind JailbreakMe, Comex, published a fix for the vulnerability called PDF Patcher 2, which is now in the Cydia app store. It will only work if people install JailbreakMe, which Apple discourages.

“Until Apple releases an update, jailbreaking will ironically be the best way to remain secure,” according to a note on the JailbreakMe website.

Stay tuned for additional details as they become available.

Amazon announces new plans, unlimited space with Cloud Drive offerings

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Date: Thursday, July 7th, 2011, 03:10
Category: News, Software

It’s the competition that keeps things interesting.

Amazon announced Wednesday a promotion offering unlimited music storage to users who purchase a Cloud Drive storage plan, heating up competition before Apple’s fall launch of its iCloud and iTunes Match services.

Per AppleInsider, the online retailer revealed three enhancements to its Cloud Drive and Cloud Player services in a statement Wednesday: storage plans that include unlimited space for music, free storage for all Amazon MP3 purchases and an iPad version of Cloud Player for Web.

“Customers are already enjoying Cloud Drive and Cloud Player and now for just US$20 a year, customers can get unlimited space for music,” said Craig Pape, Director of Amazon Music. “Additionally, we are adding free storage for all MP3s purchased from Amazon MP3, and support for the iPad. Our customers love Cloud Drive and Cloud Player and we’re excited to innovate these services on their behalf.”

The unlimited music storage applies to all premium Cloud Drive accounts, which start at US$20 a year for 20GB. Users who qualified for 20GB of free storage from an earlier promotion will automatically receive the unlimited space for music. Amazon offers 5GB of free space to all Cloud Drive users.

The addition of an iPad-friendly Amazon Cloud Player is a step back in Apple’s direction, though no mention is made of iPhone or iPod touch compatibility. Cloud Player originally launched for the Web and Google’s Android mobile OS, without direct support for iOS and Mobile Safari. In May, iOS users reported being able to access the Cloud Player, despite the fact that full compatibility had yet to be officially announced.

Whereas only new Amazon MP3 store purchases were automatically added to Cloud Drive when the service first launched in March, now all digital music purchased from Amazon will be added to the drive. The retroactive support for previously purchased music appears to indicate that Amazon has resolved any conflicts with the music industry of its service.

Apple is planning a similar move with its iCloud service, and offered the first taste of its cloud strategy last month with the release of iTunes 10.3, which allows re-downloading of music, apps and books purchased on iTunes and the App Store. When iCloud arrives in the fall, the service will provide complimentary storage of music, apps and books purchased from Apple. However, unlike Amazon’s Cloud Drive, iCloud does not stream music.

Amazon reportedly opted for an ‘ask forgiveness, not permission’ strategy with Cloud Drive, surprising music labels with the announcement of the service. Music industry sources said Amazon only addressed the issue of negotiating licenses after launching the service, leaving some industry members to view the service as illegal.

Google launched a beta of its own music service in May. However, the search giant was unsuccessful in negotiating new licenses with major music labels and has yet to open a full music store as originally planned.

Amazon and Apple will likely compete for subscribers with their respective Cloud Drive and iTunes Match services. Amazon’s cloud offerings require manual uploading of non-Amazon music files, but also offer streaming, and start at a lower price of US$20 a year. On the other hand, iTunes Match runs US$25 a year and will scan and match users’ iTunes libraries with songs available in the iTunes Music Store. Matched songs will then automatically be available for download in iCloud, and the small portion of unmatched musical will be uploaded. Like Amazon, Apple will offer 5GB of free storage for iCloud users.

Stay tuned for additional details as they become available.

Facebook announces Skype video chat integration, other changes to social networking site

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Date: Wednesday, July 6th, 2011, 10:11
Category: News, Software

If there’s a major tech news story of the day, this might be it.

Per Electronista, Facebook at its special event Wednesday brought out Skype-based video chat. The approach lets Facebook members hold one-to-one video calls between each other without having to load a separate app; complete newcomers should be talking in 30 seconds, Facebook says. The platform should also work tightly with an updated desktop app and, eventually, mobile versions.

Skype 5.3 on Windows already lets users bring in a Facebook news feed, post status updates, and make calls directly to Facebook users from Skype. A 5.5 beta release also builds in Facebook chat with live status as an option. Mac versions are expected to come in the future.

Text chat got its own update at the event. Ad-hoc group chats are now possible and don’t need users to jump into a group chat. Regular chat also has a new, simplified design that adapts to the browser size and rolls in a sidebar that allows almost immediate text chat. The reworking is also intended to accommodate “future announcements,” Facebook hinted.

Facebook was shy on whether its own mobile apps would get video chat or whether group video chat was coming. The social network and Skype did cast the video chat as a starting point and hinted groups might come along in the future.

No mention has been made of Facebook’s native iPad app. Some had anticipated it coming with the Facebook event, but it’s now seen as more likely coming in the next several weeks. In the nearer future, Facebook is also expected to show Project Spartan and bring HTML5-native, Flash-free games to iOS and Android devices.

Stay tuned for additional details as they become available.

Happy Fourth of July from the PowerPage!!!

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Date: Monday, July 4th, 2011, 03:10
Category: Announcement

Happy Fourth of July from O’Grady’s PowerPage, where the staff will be taking the day off to celebrate the holiday, grab some tasty barbecue and spend time with friends and family prior to watching rather large (and nifty) explosions in the sky tonight.

We’ll be back tomorrow with additional Mac and iOS mobile technology coverage, so enjoy the holiday and Happy Fourth, wherever you may be!!!

Analyst predicts Apple to start assembling iPhone 5 in August

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Date: Monday, June 27th, 2011, 05:21
Category: iPhone, Rumor

Apple will begin production of fifth-generation iPhones in August ahead of a projected late third quarter launch, according to intelligence obtained by by one investment banker’s recent trip to Taiwan .

Per AppleInsider, after meetings with unnamed individuals in Taiwan last week where Apple’s supply chain and manufacturing facilities reside, Morgan Stanley analyst Katy Huberty issued a note to clients in which she confidently stated: “Apple’s next iPhone will begin production in mid to late August and ramp aggressively” into the calendar fourth quarter.

She added that, based on her intelligence, the new handset will launch and be available to consumers sometime near the end of the third calendar quarter of the year, which ends September.

As a result of the later than usual launch, Huberty shifted 2 million iPhone units from the firm’s third quarter estimates to its fourth quarter estimates, though the firm’s full year estimate of 72 million units remain unchanged. However, the analyst notes that if the next iPhone were to come out in early September, it would “drive upside” to Morgan Stanley’s lowered estimates.

Lower priced iPhones and an Apple-branded TV may also be in the works, Huberty noted. According to the analyst, Apple is forecasting a large iPhone unit increase in 2012 “on the back of new products and potentially lower price points.” Various major news outlets reported this spring that Apple is planning a cheaper iPhone model, which analysts believe would help the company make gains in emerging and prepaid mobile markets.

“We also believe Apple is in the early design stages for a TV, which could add US$19 billion and US$4.50 of annual revenue and EPS longer-term,” Huberty continued. In March, the analyst reported that checks in Asia suggested Apple was working on a “Smart TV prototype.” Earlier this week, an unverified report claimed to leak Apple’s plans for iOS-powered connected TVs, citing a “former Apple executive” as the source.

In addition to Apple’s ramping up of iPhone production, Morgan Stanley sees upward pressure on iPad shipments as post-Japan earthquake product constraints have subsided. Huberty also echoed reports that improved component supply has led Apple to negotiate price cuts with some of its suppliers. Those cuts could boost margins “modestly in the June quarter and more in September,” the note read.

A recent report out of Asia said Apple has demanded 10 percent price cuts from iPad suppliers as orders increase. The report specifically cited companies supplying printed circuit boards, optical components, battery modules and touch panels as being pressured to lower prices.

Huberty sees the recent dip in Apple’s share price as a buying opportunity for investors in light of the prospect of improved shipments of the iPhone and iPad. Morgan Stanley reiterated its Overweight rating of Apple, with a price target of US$428. The company’s stock has slide more than 6 percent to US$326.35 since the beginning of June.

Stay tuned for additional details as they become available.

Rumor: Apple developing iOS-based HDTV for late 2011 release

Posted by:
Date: Wednesday, June 22nd, 2011, 07:35
Category: Apple TV, Hardware, Rumor

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Sometimes you have to turn a hobby into a full-time job.

Per DailyTech, Apple is rumored to be working on an iOS-powered connected TV, possibly for release as early as this fall.

A former Apple executive, speaking anonymously, said the company plans to “blow Netflix and all those other guys away” by bundling Apple TV + iTunes inside a physical display, DailyTech reports. Apple is reportedly teaming up with a major supplier to provide the rebranded television sets, the source noted.

When questioned why an OEM would cut into its sales by providing Apple with units, the source said, “If you have to be competing with somebody, you want to be competing with yourself.”

The tipster indicated a planned fall launch, while noting that the product could get pushed to next year because of Apple’s “high standards.” A fall launch could coincide with the launch of the next-generation iPhone, as well as iOS 5 and iCloud.

“You’ll go into an Apple retail store and be able to walk out with a TV. It’s perfect,” the source said. According to the unverified report, the iOS-driven televisions would support third-party apps.

Rumors of an Apple Smart TV have existed for years, with Piper Jaffray analyst Gene Munster repeatedly forecasting the product. Munster has suggested that an Internet-connected TV from Apple may have a starting price in the range of US$2,000.

In March, Morgan Stanley analyst Katy Huberty said Asian suppliers had told her Apple had built a Smart TV prototype. According to Huberty, an Apple-branded TV could add as much as US$4 billion per 1 percent share of the TV market Apple is able to capture over the next two years.

Then, in April, Brian White with Ticonderoga Securities said “data points” from a China electronics trade show suggested Apple could launch an HDTV set possibly by the end of the year. “Our research suggests this Smart TV would go well beyond the miniature US$99 second-generation Apple TV that the company released last fall and provide a full-blown TV product for consumers,” White said.

Though Apple CEO Steve Jobs said last year that the Apple TV set top box product is “a hobby” for the company, sales of the US$99 second-generation model have improved over the first-generation. After the company sold 250,000 units in the first six weeks of availability, Jobs said Apple was “thrilled” with the figures.

Apple went on to sell 1 million Apple TVs within three months of the device’s launch. However, analysts have estimated that a million units per quarter would amount to a “fairly immaterial” $400 million in annual revenue.

Analyst Ming-Chi Kuo of Concord Securities said in April that Apple TV sales had reached 2 million, reportedly selling 820,000 units in the March quarter.

Stay tuned for additional details as they become available.

Rumor: iPhone 5 with 8MP camera due in September, Hi-Res iPad 3 en route

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Date: Wednesday, June 22nd, 2011, 04:02
Category: iPad, iPhone, Rumor

You may be wanting the iPhone 5 now, but you might have to wait until September while Apple tests the new handset and some other cool stuff.

Per Bloomberg, two sources familiar with Apple’s plans have stated that Apple is working on a higher resolution iPad and dropped details regarding Apple’s much-anticipated iPhone 5 handset. Apple’s next iPhone “will include the A5 processor, the more powerful chip that Apple added to the iPad 2 earlier this year, along with an 8-megapixel camera, up from the 5-megapixel model in the iPhone 4,” said the publication’s sources.

As is to be expected, the new device would come with iOS 5, which is due out this fall, according to people familiar with the matter. Sources also said the new iPhone would closely resemble the iPhone 4.

The report’s insiders also rekindled a rumor that Apple is working on a cheaper version of the iPhone for emerging markets using “chips and displays of similar quality to today’s iPhone 4.” Rumors of a low-cost iPhone emerged this spring, though there is some disagreement regarding the details of the project.

“Apple is also testing a new version of the iPad that has a higher resolution screen, similar to the one now used in the iPhone 4,” the Bloomberg report cited sources as saying. The iPhone 4 currently features a Retina Display with a resolution of 960 x 640 and a pixel density of 326 pixels per inch. The resolution of the next-generation iPad would be about “one-third higher” than the iPad 2′s display and will feature a more responsive touchscreen, people said.

Various reports have suggested the iPad could see a display upgrade that would double the tablet’s linear resolution to 2048 x 1536. Last week, double-resolution iPad images in the iOS 5 beta sparked renewed speculation that Apple is planning the improved display.

Stay tuned for additional details as they become available.

Recently discovered FCC filing points towards upcoming AirPort Extreme device

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Date: Tuesday, June 21st, 2011, 04:11
Category: News, wireless

Sometimes it’s the FCC filings that give it away.

Per Engadget, A new filing with the U.S. Federal Communications Commission has revealed an updated AirPort Extreme wireless base station from Apple is forthcoming.

The new hardware was outed this week by an FCC filing, made by Apple on June 16, which shows a 3×3 802.11n access point, dubbed model A1408.

The label includes mention of AirPort IDs in both the 2.4GHz and 5GHz range, as well as an Ethernet ID. The hardware carries an FCC ID of BCGA1408.

The documents do not reveal what may have changed in the new hardware model, but it’s likely the new hardware is set for imminent release given the timing of the FCC filing.

Last week, Apple updated its AirPort Utility, and the software contains references to a new fourth-generation Time Capsule and fifth-generation AirPort Extreme. No mention of a new Time Capsule was made in the latest FCC filings, but given that stock of the hardware has run dry along with AirPort base stations, it’s a likely candidate for a refresh as well.

Various rumors have claimed that Apple may shift its base stations to run iOS. This transition could allow for more robust features, like print and media streaming services, integration with iCloud, and cached wireless software updates.

Stay tuned for additional details as they become available.

Adobe releases Flex 4.5, Flash Builder 4.5, updates tools for building iOS apps

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Date: Monday, June 20th, 2011, 05:01
Category: iOS, News, Software

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Sometimes the Hatfields and the McCoys can put their differences aside and get along where the iOS platform is concerned.

Per the company’s official blog, Adobe this week released Flash Builder 4.5 and Flex 4.5, adding the ability to build and distribute iPhone, iPad and iPod touch applications on Apple’s official App Store.

The new functionality was announced on the company’s official blog, where Adobe Product Marketing Manager Puneet Goel revealed that App Store software could be created “using one tool chain, programming language and code base — a first for developers.”

The support for iOS applications comes in addition to the ability to create software for Research in Motion’s BlackBerry PlayBook tablet, also new features of Flash Builder and Flex 4.5. Initially, application support was only available for Android software.

Flash Platform evangelist Serge Jespers demonstrated the ability of Flash Builder 4.5 and Flex 4.5 to build iOS software in a video accompanying the post. The same stock market tracking application was shown running on an iPad 2 and iPod touch, in addition to an Android-powered HTC smartphone and the BlackBerry PlayBook.

Jespers also showed off the ability of Adobe’s software to allow developers to quickly created tabbed applications, or add features like automatically rotating between portrait and landscape mode. By checking the appropriate boxes, developers can easily export their mobile software for Apple’s iOS alongside BlackBerry Tablet OS and Google Android.

A “Platform Settings” option also allows developers to select their target device when creating iOS software. Through this, software can be created specifically for the smaller screen sizes of the iPhone and iPod touch, the larger 9.7-inch display of the iPad, or both.

“When your application is ready, you don’t actually have to build the application separately for every single platform,” Jespers said. “You can actually do that in one code. It’s pretty amazing.”

Flash 4.5 and Flex 4.5 are offered as standalone products for developers to purchase, or are available through Creative Suite 5.5 Web Premium and Master Collection.

Last September, Apple revised its policy on third-party development tools for iOS, and decided it would allow developers to use tools like Adobe’s in order to create software made available to download on the App Store. That was a change from an earlier policy, when Apple’s iOS 4 software development kid license banned tools that would port applications from Flash, Java and Mono.

Controversy over Apple’s decision prompted CEO Steve Jobs to pen a letter in which he explained that allowing Flash conversion tools would produce “sub-standard apps” for the iPhone and iPad, hindering the progress of the iOS platform. Jobs said at the time that it was known from “painful experience” that allowing developers to become dependent on third-party tools is restrictive.

“We cannot be at the mercy of a third party deciding if and when they will make our enhancements available to our developers,” Jobs said in April 2010.

Though Flash remains banned on iOS devices, Adobe has continued to expand its support for the iPhone and iPad, and this march released a Flash-to-HTML5 conversion tool. The “experimental” software called “Wallaby” allows for Adobe Flash Professional files with the .fla extension to be converted to an HTML format that can be opened in the Mobile Safari browser on iOS devices.

If you’ve had a chance to play with the new versions of Flash Builder or Flex, let us know what you think in the comments.