Archive for May 27th, 2010

Latest NPD report reveals that Apple increased its music market share again. Here is a current ball game (in comparison to the last year situation):

• Digital music downloads: 40% (+5%) of all music sold;
• Apple: 28% (+4%) share of all music sold, 70% (+1%) of digital music downloads;
• Amazon: 12% (+3%) share of all music sold, 12% (+4%) share of digital music downloads.

Vice president of industry analysis at NPD Russ Crupnick says that physical media market share decreases because it becomes too effortful to look for a necessary CD in retail stores.

"Online shopping offers consumers who still want CDs more variety than they would get in a brick-and-mortar store; plus, recommendations, and other interactive features that raise the overall value proposition for music buyers."

It is interesting that though Amazon's market share is growing, the Department of Justice is looking into Apple to determine whether the company leverages its market power to prevent competition on the music market.

Yesterday Digitimes posted an interesting interview with its own senior analyst Ming-Chi Kuo who disproved many rumors about upcoming iPhone.

He told that Apple once considered using OLED display in iPhone 3GS, but it was found to be unsuitable for displaying text, and now this is a key direction in which Apple is improving its iPhone since the company promotes iBookstore for it. Moreover, in February scientists unveiled that Apple iPhone 3GS' LCD display is much better than the OLED screen in Google Nexus One, because the latter doesn't reproduce colors accurately and has lots of artifacts.

Ming-Chi Kuo also revealed that the work on iPhone 4G was started at the end of 2008. Its codename is N90, and not many people knew about this, but Gizmodo found exactly the N90 prototype. There is another iPhone with codename N91 that is a lesser upgrade that must be used «in case there are major delays [of components] due to significant modifications.

With regard to the iPhone 4G's processor Ming-Chi Kuo told:

"Since the launch schedule of the Cortex A9 processor is estimated for year's end and iPhone 4.0 is not ready to fully utilize a multi-core processor, the A4 is the most likely candidate".

This is not the first words of Ming-Chi Kuo about iPhone 4G, previously we posted another information revealed by him, you can read it here.

httpvh://www.youtube.com/watch?v=lUEF2Klofzs

Yesterday Wired magazine had finally released its iPad edition.  Chief editor Chris Anderson told that the magazine now uses new publishing technology created by Adobe that allows using the same tools for creating both digital and print versions of the edition.  He also admires the version created for iPad:

"It has all of the visual impact of paper, enhanced by interactive elements like video and animated graphics. We can offer you a history of Mars landings that lets you explore the red planet yourself. We can take you inside Trent Reznor's recording studio and let you listen to snippets of his work in progress. And we can show you exactly how Pixar rafted each frame of its new movie, Toy Story 3."

To create a digital version compatible with iPad (which doesn't support Flash), Adobe had to recreate it in Objective-C, The Wall Street Journal explains. Rebuilt edition has all the features of the initial version. Though the edition looks great, there are still many other features, such as search functions and social connectivity, to be added in the future issues.

Wired publisher Conde Nast also owns other magazines, but the company noted it will not create special iPad edition for them.

iPad version of Wired is available here for $4.99. It is a June issue; next issues will be available as a part of library included in application. The subscription will become allegedly available this autumn.

After yesterday news report about tenth suicide among Foxconn employees Apple had officially commented on the situation. Here are the words from the company's public statement:

"We are saddened and upset by the recent suicides at Foxconn. Apple is deeply committed to ensuring that conditions throughout our supply chain are safe and workers are treated with respect and dignity. We are in direct contact with Foxconn senior management and we believe they are taking this matter very seriously."

Reuters also informed that Apple will investigate the case and had already involved its own investigation team to "address these tragic events".

Foxconn is known much not only as the manufacturer of iPhone 4G, it is also a company responsible for making a number of products created by HP, Dell, and Nokia. Analyst Andrew Deng from Taiwan International Securities told Reuters that these companies might  react accordingly in case Foxconn is not tackling the problem:

"It's a crucial issue that Hon Hai [registered trade name for Foxconn] has to deal with right away. If not, Nokia, HP and Apple might cut their orders as pressure against buying their products could be mounting."

According to information from the Wall Street Journal Foxconn chairman Terry Gou has already launched antisuicide measures. They include the construction of special nets around Foxconn's building (as most of the workers died because of a jump from the roof) and establishing the "Foxconn Employee Care Center". Moreover, the company invited counselors and academic experts to talk with its employees and asked a group of Buddhist monks to utter prayers for the factory.

This week Terry Gou also showed reporters a huge swimming pool, bakeries, dormitories and banks built for employees needs.

Gene Munster, who is an analyst at Piper Jaffray, told yesterday that Steve Jobs won't allegedly make a surprise with presentation of the next generation iPhone at the WorldWide Developer Conference 2010. Because of numerous prototype leaks everybody expects the iPhone 4G to have thinner design, front-facing camera, improved battery and 5MP rear camera. But Gene claimed people should not expect that a Verizon-compatible model will be presented.

"We believe that it is unlikely that the next generation iPhone will be available at Verizon (or Sprint) at launch; rather, it is more likely that it remains exclusively available at AT&T in the U.S. at launch".

He also said Apple may start selling iPhone 3GS for $99 instead of iPhone 3G and provide a "limited demo" of new version of Mac OS X (10.7), that has all chances to support multi-touch technology as a key feature. But as we wrote before it looks like WWDC2010 will focus mainly on iPhone OS 4.0 so the preview of Mac OS X 10.7 will not allegedly happen.

Gene is assured that the presentation of iPhone 4G will have a positive influence on Apple's stock.

"...the new iPhone will likely drive unit sales beyond Street expectations, providing a positive catalyst for shares of AAPL in the coming months."