Chinese web portal NetEase claims that Apple plans to launch a smaller "iPad mini" in the third quarter of this year.

NetEase claimed that the device will be released around the third quarter of this year to "counter attack" the upcoming Windows tablets, although smaller Android tablets such as Amazon's Kindle Fire have also been viewed as targets for Apple. The report further claims that the devices will cost anywhere from US$249 to $299 and that there will be an initial 6 million units ready for launch.

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The iPhone Dev-Team has released updated RedSn0w 0.9.10b6b for Mac OS that fixes an issue for those on Mac OS X 10.5.x or earlier.

Update #1b: The OS X version of redsn0w has been updated to fix an issue for those running OS X 10.5.x or earlier.

You can download the latest version of RedSn0w from here.

Our step-by-step tutorials for jailbreak iOS 5.1 using redsn0w 0.9.10b6 are here.

Apple on Friday released version 1.0 of its "Flashback malware removal tool" which will scan a user's computer and erase known iterations of the Trojan that some are calling the worst the Mac platform has ever seen.

About Flashback malware removal tool

• This Flashback malware removal tool that will remove the most common variants of the Flashback malware.
• If the Flashback malware is found, a dialog will be presented notifying the user that malware was removed.
• In some cases, the Flashback malware removal tool may need to restart your computer in order to completely remove the Flashback malware.
• This update is recommended for all OS X Lion users without Java installed.

600,000 Macs were reported to be infected by Flashback and connected in the botnet, which harvested personal information and web browsing logs from affected machines. The Trojan was first discovered last year and installed itself through the guise of an Adobe Flash installer. This version of the malware is able to install itself automatically after visiting an infected website.

Ciccarese Design has posted renderings of what a 7.85-inch iPad might look like next to the current iPad and iPhone 4S.

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According to IDG News, Sharp reports that it has started mass production of new high-resolution IGZO displays. Early rumors have suggested that Apple might include the IGZO displays in iPad 3, but due to some reasons the company elected not to do so.

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Piper Jaffray analyst Gene Munster has recently announced his estimates of Apple sales for the first calendar quarter of the year 2012 ahead of the earnings call set for March 24.

Piper Jaffray analyst Gene Munster’s numbers differ from the average expectations on Wall Street. He expects the company sold 33 million iPhone that is a bit higher than the Street's forecast of 30.5 million handsets, while his forecast of 12 million iPads is slightly below the Street's 13 million. He also suggests Apple will report on 4.3 million Macs sold in the three-month span from January to March.

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Ars Technica reports that Apple has began asking users of iOS devices to select and answer some question related to their Apple IDs. Such measures were reportedly taken by the company to improve security of iTunes accounts.

After being shown the message, users are asked to select from a number of security questions and provide personal answers. Users are also prompted to provide a backup e-mail address in case the primary address associated with their Apple ID is compromised.

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Last month CPU World reported that Ivy Bridge CPUs would launch between April 22 and April 29. Today Cnet and many other sources reports that Intel will start rollout on April 23. Many of the Ivy Bridge chips included in the first part of the launch will be suitable for desktop computers and MacBook Pros. However low-voltage U-Series models that will likely be used in the new MacBook Airs are expected in June.

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Marketplace Shanghai Bureau Chief Rob Schmitz, the second reporter ever to gain access to the factory floor at Apple's Chinese producer Foxconn, has posted a video showing some steps of the iPad's production.

Schmitz was the reporter who revealed that Mike Daisey had falsified many of his stories about Foxconn and the visitors that work there. You can hear his full audio reports on your local public radio station or online at http://www.marketplace.org.

Check out the video below for a first look at Foxconn's assembly line:

According to Bloomberg, today the U.S. Department of Justice sued Apple and several book publishers over using agency model for e-book pricing. Reportedly, Apple and the publishers were unwilling to meet the demands of the Department of Justice.

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Yesterday Apple issued a support document relating to the Flashback Trojan malware that infects OS X computers. Previously we detailed this malware that infects computers exploiting a Java vulnerability that Apple patched last week. Reportedly this program has affected more than 600,000 Mac computers around the globe.

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Today analyst Brian White from Topeka Capital Markets has issued a new research report sharing new details about the iPhone 5 that he heard from Apple’s suppliers during his recent trip to Asia. According to the report (via Barron's) , White expects a new iPhone will have “sleek” look and a larger 4-inch screen:

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Apple is reportedly testing a prototype of next-generation iPhone hidden under the iPhone 4 casing. The next iPhone is said to not include the iPhone 4/4s form factor, and Apple is testing the prototype in older casing in order to throw off leaks. The prototype iPhone is used to test a variation of A5X processor in an iPhone. The A5X system-on-a-chip in the iPad 3 was specifically designed to run the new Retina Display, so that adding this chip in the next iPhone wouldn’t make much sense.

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As announced, AT&T has begun unlocking off contract iPhones for customers. TNW details the procedure. If you quality you can contact the company via phone, chat, or in-store.

The only piece of information required by AT&T is the International Mobile Equipment Identity (IMEI) number, which can be found under Settings -> General ->About on your device. Then in 72 hours you will receive email confirmation.

The maximum amount of unlock codes that can be given to an account is 5/year. You can see a copy of the unlock confirmation below.

AT&T has announced that it will unlock off contract iPhones.

Here AT&T's statement:

Beginning Sunday, April 8, we will offer qualifying customers the ability to unlock their AT&T iPhones. The only requirements are that a customer's account must be in good standing, their device cannot be associated with a current and active term commitment on an AT&T customer account, and they need to have fulfilled their contract term, upgraded under one of our upgrade policies or paid an early termination fee.

This is excellent news for the many U.S. customers with locked iPhones.