Archive for April 30th, 2010

This week Apple announced that it will shut down its previously acquired music service Lala on May 31. If you'll try to register there as a new user, you'll see a message box:

"Lala is shutting down. The Lala Service will be shut down May 31, 2010. Unfortunately, we are no longer accepting new members."

If you're an existing member of Lala, you'll be able to use the service until May 31. But since today you'll have no access to Web songs, gift cards (any unredeemed must be utilized) and wallets, and your credits will be automatically passed to iTunes. It is also announced by Lala if customer will request a check by May 31 they will write it.

Apple purchased Lala last year for $85 million. It was announced that this service will play a significant role in iTunes strategy. Lala's difference was that user was allowed to upload music from their hard drives and then listen to it from the service. Maybe now this function will be implemented in iTunes.

Yesterday The Wall Street Journal reported that this year Apple is going to charge companies 1$ million for iAds on its mobile devices. Citing an unknown but reliable source familiar with the matter those companies that want to become a part of the iAds launch will pay $10 million to be first in the door.

The pricing policy of iAds is pretty simple. Every time user sees an ad the advertiser is charged a penny. If he's tapping the banner, Apple charges $2. So $1 million ad buy will provoke a big amount of its views and user taps.

In addition to a higher price Apple wants to take more control over marketing campaigns of its clients. But still it doesn't reduce companies' interest in iAds:

"Despite the high price, ad executives at agencies from Boston to New York and San Francisco to Los Angeles have crowded into conference rooms in recent weeks to listen to the tech company's pitch for iAd".

One of the advertisements that is already developed is an ad for Nike's Air Jordan basketball shoes. It includes iAd logo and animated banner. If you select it, you'll see an interactive store locator, special videoclip and exclusive offers taking place at local stores. This iAd was also shown by Apple on its iPhone OS 4 preview event.

Some experts think Apple's appearance at the market of mobile advertisement may convince some other selling ads companies to switch to other mobile platforms (for example, Google Android).

With a growing popularity of apps for Apple devices advertisers and developers see iAds as a potential opportunity to reach a wide audience and raise more money on it.

Wired.com finally figured out that 21-year-old Brian J. Hogan from Redwood City, California, is a person who found an iPhone 4G prototype and sold it to Gizmodo. The resource identified him by following clues on different social networks and then confirmed the information from a source who involved in the investigation around the device.

Brian regrets that he didn't try harder to return the iPhone to its owner, according to his attorney. He is willing to cooperate with authorities to avoid any consequences.

The story of iPhone's revealing is very similar to the Gizmodo's one. Brian got the device from one of his friends in the bar. When he didn't find its owner he took it home. There he used Facebook, but then the phone shut down. Sometime later Brian removed a fake cover and understood that it must be a prototype of iPhone 4G. He tried to call Apple Care but this didn't take effect.

Then Brian offered several journalists to take a look at the device. But he believes that Gizmodo's payment was for allowing it exclusive access for reviewing the phone, but not for purchasing it.

The bar owners say Hogan didn't come to the public house in attempts to find the device's owner. Grey Powell returned several times and asked about any information on his iPhone.

Brian has recently transferred schools and will continue studying in the autumn. Before that he was giving swimming lessons to children and also volunteered at a Chinese orphanage when he was enrolled in a study-abroad program.

As you remember, last Friday the Rapid Enforcement Allied Computer Team searched the house of Gizmodo's editor who reportedly had iPhone 4G prototype. Well now we have information from MarketWatch that the steering committee which oversees the REACT team consists of Apple, Google, Adobe and other companies. This data was taken from California's High Technology Crime Advisory Committee's annual report dated 2008.

Moreover, it is reported that the steering committee doesn't have "defined membership" and its meetings can be visited by all of the company representatives. Apple representatives did not visit any recent meeting, but the company is currently listed amongst companies that have open investigations to attend. That means that Apple may be a director of a Friday episode with Jason Chen.

But today's news reveals that is not the end of the story.

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