Still! If you’re the kind of person who has an intense interest in all things Apple, you might have found items of interest during Cue’s testimony at Daniel Patrick Moynihan United States Courthouse in lower Manhattan. Particularly the parts where Apple’s attorney asked Cue to talk about Steve Jobs.

I’m not sure why Apple lawyer Orin Snyder wanted Cue to spend time discussing his late boss, because I can’t see how it has any bearing on the case. But, then again, my legal training consists of watching some “L.A. Law” back in the ’90s.

So, in any case, for the record: Apple wants you to know that Steve Jobs wasn’t just into the idea of iBooks and an iBookstore, but was intimately involved in its product design and launch in the fall of 2009 and early 2010.

For instance:

• The “page curls” in the iBook app, which show up when you flip an iBook’s page? That’s Steve Jobs’s idea.
• It was Jobs’s idea to pick “Winnie-the-Pooh” as the freebie book that came with every iBook app. Not just because Jobs liked the book, Cue said, but because it showed off iBook’s capabilities: “It had beautiful color drawings, that had never been seen before in a digital book.”
• Jobs was also specific about the book he used to show off the iBook during his initial iPad demo in January 2010. He picked Ted Kennedy’s “True Compass” memoir, because the Kennedy family “meant a lot to him,” Cue said.

Again: Will any of this have any bearing on the trial’s outcome? Seems unlikely. But we are approaching the end of this process. Closing arguments are scheduled for Thursday.

“They had a relationship that was not positive. You heard a lot of negative things from them.”

– Apple media boss Eddy Cue, testifying during the DOJ antitrust trial Monday, describing the way book publishers viewed Amazon, circa 2009

Testifying in the DOJ’s e-book price-fixing case Thursday, Eddy Cue, Apple’s senior vice president of Internet software and services, said that when he first approached Jobs with the idea of a bookstore in the fall of 2009, the Apple co-founder dismissed it.

“He wasn’t interested,” Cue said. “Steve never felt that the Mac or the iPhone were ideal reading devices. In the case of the phone, the screen was smaller, and in the case of the Mac, you had this keyboard and device, and it didn’t feel like a book.”

But as Apple began ramping up for the launch of the iPad, Cue broached the idea again, and Jobs had a change of heart.

“… When I got my first chance to touch the iPad, I became completely convinced that this was a huge opportunity for us to build the best e-reader that the market had ever seen,” Cue said. “And so I went to Steve and told him why I thought [the iPad] was going to be a great device for e-books. … and after some discussions he came back and said, you know, I think you’re right. I think this is great, and then he started coming up with ideas himself about what he wanted to do with it and how it would be even better as a reader and store.”

That was the “good part,” Cue explained, and it inspired Apple to approach publishers about selling their e-book titles. But there was a “bad part,” as well: Timing.

“This was in November,” said Cue. “We were launching the iPad in January. And so Steve said, ‘you can go do this, but you’ve got to get it done by January. … I want to be able to demo it onstage.’ And so that was the sort of challenge presented to me.”

And a challenge that Cue took upon himself to complete not just for Apple and the promise of a new revenue stream, but for Jobs, whose health was in decline at the time.

“Steve was near the end of his life when we were launching the iPad, and he was really proud of it,” Cue said. “He was working hard on it. I believed that iBooks was going to be a tremendous feature of the product. People were going to love it; our customers were just going to go wild about iPad and iBooks, and I wanted to be able to get that done in time for [the event] because it was really important to him. … I like getting my work done and I pride myself on being successful, but this had extra meaning to me.”

Just days after introducing Apple’s new iTunes Radio streaming music service at the company’s Worldwide Developers Conference in San Francisco, Eddy Cue — Apple’s senior VP for Internet services and software, and its master dealmaker — appeared in a Manhattan federal court as a central witness in the U.S. Department of Justice’s e-book price-fixing case.

According to the government, Cue was the main intermediary between Apple and five major publishers, and the “chief ringleader” of an alleged conspiracy to shift the e-book industry from the wholesale pricing model established by Amazon to an agency model where publishers, not retailers, set e-book prices, sending them higher than they had been in the past. But on the witness stand Thursday, Cue maintained he was anything but.

Presented with phone records that suggested a group of five publishers were discussing among themselves Apple’s agency model proposal, Cue denied any knowledge of the communications. In fact, Cue said he didn’t even suspect the publishers might be coordinating. “I don’t believe they were working together to do the deal that I was working on, because I did those deals and I struggled and fought with them for many, many days to get them to sign,” Cue said. “And they argued different points. So if they were talking to each other, I would have assumed that I would have had a much easier time getting those deals done.”

And while the government was able to force him to acknowledge that the price of some e-books did rise after Apple opened its iBookstore, Cue remarked that this shouldn’t have been a surprise, given the publishers’ dissatisfaction with Amazon’s lowball $9.99 pricing. “They had expressed they wanted higher prices from us,” he said, reiterating what Cupertino has argued throughout this process: That it was the publishers who raised e-book prices, not Apple.

And when pressed to admit that higher e-book prices were not in the best interest of the general public, Cue refused to concede. Instead, he insisted that Apple’s entrance into the e-book market dramatically improved it. “We gave consumers great prices and a great selection of books that weren’t available elsewhere, in a better bookstore,” Cue said. “We gave them a great offer.”

Questioned by Apple’s chief counsel, Orin Snyder, on Thursday afternoon, Cue was a bit more forthcoming, bolstering Apple’s argument that it was concerned only with its own deal with publishers, and not with those of other retailers.

“My focus [on these deals] was from an Apple point of view. I [wasn't] interested in [the publishers'] business, or how they do business with the — with anybody else. … I didn’t care at all what type of deals the publishers got or didn’t get from Amazon or Barnes & Noble or anybody else. I knew that if Barnes & Noble or Amazon were able to negotiate a better deal than I had from a consumer price point, I would get it as part of our MFN (Most Favored Nation agreement).”

And speaking directly to those MFNs, which ensured that Apple would always be able to sell e-books at least as cheaply as other retailers, Cue insisted that they were not — as the government alleges — intended to force rival e-book sellers like Amazon and Barnes & Noble to the agency model.

“We did the MFN for the purposes of being able to compete on price,” Cue said. “The MFN has nothing to do with whether you’re on an agency model or any other model. That wasn’t the goal. [That] didn’t matter to us. That’s not what we were thinking. What we were thinking is, does the MFN give us competitive pricing irrespective of whatever models Amazon, Barnes & Noble, or anybody else is in.”

Cue will return to the stand on Monday.

PREVIOUSLY:

• DOJ Misfires on Jobs Email in Apple E-Book Case — It Was a Discarded Draft
• Is Steve Jobs Message a Smoking Gun in Apple E-Book Case?
• Amazon Demanded Same Terms From Publishers For Which Apple is Now On Trial
• Apple Says Differences in Publisher Deals Belie E-Book Conspiracy Charges
• Apple Accuses DOJ of Unfairly Twisting Steve Jobs’s Words
• Apple Says DOJ Is Trying to “Reverse Engineer a Conspiracy” in E-Books Case
• Here’s the DOJ’s E-Book-Pricing Case Against Apple (Slide Deck)
• Apple CEO Tim Cook: “The E-Book Case to Me Is Bizarre”
• Judge in E-Book Pricing Case Thinks Apple’s Going Down; Apple Begs to Differ
• Here’s That Steve Jobs E-Book Email to James Murdoch
• Apple’s E-Book Argument: Deals With Publishers Improved Competition
• DOJ Filing Calls Apple “Ringmaster” of E-Book Pricing Rise
• Apple Alone Fighting DOJ E-Book Suit After Macmillan Settlement
• Apple’s Cook Must Testify in E-Book Antitrust Suit

So that seemingly smoking gun email from Apple CEO Steve Jobs to SVP Eddy Cue in the Department of Justice’s e-book price fixing case against Apple? The one that appeared to undermine the company’s argument that it was indifferent to the pricing model publishers used with other retailers like Amazon?

According to new evidence submitted by Apple, it’s hardly warm, let alone smoking. The document cited by the government is simply a draft message that was never sent. What Apple entered into evidence late Wednesday appears to be a more complete version of that message, the one that was actually sent to Cue, and it differs significantly from that apparently damning draft.

Crucially, it does not contain any language suggesting publishers need to push Amazon to the agency model Apple wanted for its own e-book store. Indeed, it expressly acknowledges that publishers might continue their wholesale pricing arrangements with Amazon.

“I can live with this,” Jobs wrote, “as long as they also agree to the other thing you told me you can get: The retail price they will set for any book will be the LOWER of the applicable “iTunes” price below OR the lowest wholesale price they offer the book at to anyone else, with our wholesale price being 70% of such price. For example, normally our retail price for a $26 book will be $12.99 and we will pay 70% of that, or $9.10. However, if they offer the same book to Amazon for a wholesale price of, say $12.50, then our retail price for the same book shall be set at $12.50 and we will pay 70% of that price for the book.”

That’s a very different message from the unsent draft showcased by the DOJ earlier today. It’s much more fully thought out; it shows Jobs concerned only about Apple potentially being discriminated against on price; it outlines the Most Favored Nation (MFN) agreements Apple would ultimately strike with publishers that ensured it would always be able to sell e-books at least as cheaply as rivals; and it omits the phrase that the DOJ presents as damning: “I can live with this as long as they move Amazon to the agent model too for new releases for the first year.”

Apple and its lead counsel Orin Snyder are undoubtedly going to have a field day with this in court tomorrow, as it speaks to their argument that the DOJ is unfairly twisting the words of Apple’s founder to build its case. As Snyder argued in his opening, “There’s something inherently unfair and uncomfortable about placing such reliance on the out-of-court statements of someone who’s not here to explain them or place them into context — particularly when in almost every instance the government either omits key language to draw an inference, or blatantly mischaracterizes what the statements mean.”

Now the DOJ may well argue Jobs’s draft speaks to intent. Presumably, that was its rationale for surfacing it today. But again, this is a message that was never sent. And the alternate draft entered into evidence by Apple, the version that was actually transmitted to Cue, contains nothing untoward.

Apple and the DOJ have not yet responded to a request for comment.

Correction, June 13: An earlier version of this post stated that the Steve Jobs email entered into evidence by Apple on Wednesday was sent to Eddy Cue. It was not. It was simply another draft of the same message.

PREVIOUSLY:

• DOJ Misfires on Jobs Email in Apple E-Book Case — It Was a Discarded Draft
• Is Steve Jobs Message a Smoking Gun in Apple E-Book Case?
• Amazon Demanded Same Terms From Publishers For Which Apple is Now On Trial
• Apple Says Differences in Publisher Deals Belie E-Book Conspiracy Charges
• Apple Accuses DOJ of Unfairly Twisting Steve Jobs’s Words
• Apple Says DOJ Is Trying to “Reverse Engineer a Conspiracy” in E-Books Case
• Here’s the DOJ’s E-Book-Pricing Case Against Apple (Slide Deck)
• Apple CEO Tim Cook: “The E-Book Case to Me Is Bizarre”
• Judge in E-Book Pricing Case Thinks Apple’s Going Down; Apple Begs to Differ
• Here’s That Steve Jobs E-Book Email to James Murdoch
• Apple’s E-Book Argument: Deals With Publishers Improved Competition
• DOJ Filing Calls Apple “Ringmaster” of E-Book Pricing Rise
• Apple Alone Fighting DOJ E-Book Suit After Macmillan Settlement
• Apple’s Cook Must Testify in E-Book Antitrust Suit

“The negotiations make clear that the interests of the publishers and Apple were not aligned,” Snyder said. “Apple wanted lower prices on its own book store, and was indifferent to prices throughout the rest of the industry.”

But a new document entered into evidence Wednesday by the DOJ suggests that Apple may not have been quite as indifferent to publishers’ deals with Amazon as it professes to be. It’s a Jan. 14, 2010, message from Steve Jobs to Eddy Cue, his point man for e-book negotiations, and in it he says he wants publishers to push Amazon to an agency pricing model where publishers, not retailers, set prices.

“I can live with this as long as they move Amazon to the agent model too for new releases for the first year,” Jobs wrote. “If not, I’m not sure we can be competitive …”

A smoking gun? The DOJ certainly thinks so, and it used the message to great effect Thursday, shaking up the head of Apple’s iBookstore on the stand and undermining the company’s claims of indifference to other industry pricing arrangements.

Apple hasn’t yet had a chance to explain the message, which Snyder claims was never sent. But it promises to do so tomorrow when Eddy Cue takes the stand. Just how isn’t yet clear, though it’s worth noting that the subject line of the message in question is “Book prices thoughts” and it’s clearly part of a longer thread. Apple has argued throughout the trial that the DOJ’s case is built on cherry-picked documents that don’t support its theories when put in broader context. Perhaps that’s what we’ll see tomorrow.

Apple has not yet responded to a request for comment.

UPDATE: DOJ Misfires on Jobs Email in Apple E-Book Case — It Was a Discarded Draft

PREVIOUSLY:

• DOJ Misfires on Jobs Email in Apple E-Book Case — It Was a Discarded Draft
• Is Steve Jobs Message a Smoking Gun in Apple E-Book Case?
• Amazon Demanded Same Terms From Publishers For Which Apple is Now On Trial
• Apple Says Differences in Publisher Deals Belie E-Book Conspiracy Charges
• Apple Accuses DOJ of Unfairly Twisting Steve Jobs’s Words
• Apple Says DOJ Is Trying to “Reverse Engineer a Conspiracy” in E-Books Case
• Here’s the DOJ’s E-Book-Pricing Case Against Apple (Slide Deck)
• Apple CEO Tim Cook: “The E-Book Case to Me Is Bizarre”
• Judge in E-Book Pricing Case Thinks Apple’s Going Down; Apple Begs to Differ
• Here’s That Steve Jobs E-Book Email to James Murdoch
• Apple’s E-Book Argument: Deals With Publishers Improved Competition
• DOJ Filing Calls Apple “Ringmaster” of E-Book Pricing Rise
• Apple Alone Fighting DOJ E-Book Suit After Macmillan Settlement
• Apple’s Cook Must Testify in E-Book Antitrust Suit

The talks, which took place in recent weeks and involve Apple senior vice president Eddy Cue, are the latest sign of Apple’s plans to more tightly integrate local services into the iPhone and iPad. The discussions with New York-based Foursquare come as Apple has been talking to a number of companies that collect local data to improve its new mapping product.

Read the rest of this post on the original site

A member of Apple’s old guard, the 23-year company veteran rose through the ranks as co-founder Steve Jobs’s right-hand man for new areas like e-commerce and media. But at a company dominated by hardware and operating systems, Mr. Cue was on the periphery and known largely for cajoling media companies to sign on to Apple’s iTunes service.

Read the rest of this post on the original site »

Back in September, Apple said an iTunes overhaul would be out in October. Now it’s pushing that back a month.

Here’s spokesman Tom Neumayr’s take: “The new iTunes is taking longer than expected and we wanted to take a little extra time to get it right. We look forward to releasing this new version of iTunes with its dramatically simpler and cleaner interface and seamless integration with iCloud before the end of November.”

The obvious question is whether the delay is related to the company’s management changes, including the ouster of top executive Scott Forstall. Neumayr declined to answer that one. But it’s worth pointing out that Forstall wasn’t in charge of iTunes — it falls under media boss Eddy Cue.

On the other hand, Apple’s last major software refresh led to a public apology from Tim Cook. So it’s reasonable to guess that Apple would take extra care to get this one into shape.

Here’s what the new software is supposed to include:

• Better layout
• Improved performance
• Easier playlist creation
• Full-library search
• Improved iCloud integration
• A completely redesigned mini-player
• A full-window interface on your Mac or PC, a new library view and an expandable album view

No word on whether the software will require less storage and computing power on Apple’s devices, which has been a longtime user complaint.

Big management shifts at Apple are now taking place.

Scott Forstall, the man in charge of its iOS mobile software efforts and a major and longtime executive at the tech giant, is leaving next year and will remain an adviser to CEO Tim Cook until then.

In addition, new retail head John Browett is headed out the door.

As part of the move, Apple noted that four key execs — Jony Ive, Bob Mansfield, Eddy Cue and Craig Federighi — would “add responsibilities to their roles.”

Ive gets “Human Interface”; Cue will take over Maps and Siri voice recognition responsibilities; Mansfield will run a new unit called Technologies, “which combines all of Apple’s wireless teams across the company in one organization”; and Federighi gets the big job of iOS and OS X.

More to come on what happened, but Forstall’s departure is very big news and a drastic move for such an important player in the tech space.

He had big fans and also many detractors for his sharp-edged personality, as well as what some described as exhibiting “growing open challenges” to Cook himself. Forstall had previously been called “CEO-in-waiting” in one media account in Fortune.

In addition, numerous sources noted persistent tension between Forstall and several other key execs, especially the powerful design chief Ive.

Veiled internal politics at Apple aside, Forstall has been a key part of Apple’s success over the last decade, especially in the development iPad and the iPhone.

Recently, there has been some level of ire at Apple over the troubled rollout of its own mapping software and the replacement of Google’s popular service, which was Forstall’s responsibility. (No, this move does not mean everyone gets Google mapping back, as one person asked me.)

Browett’s leaving is a little less of a surprise. Since he got the job, he has alienated many within the highly successful retail organization at Apple, many sources said.

His departure comes less than one year after the former Dixons CEO was hired by Apple to succeed Ron Johnson, who left for J.C. Penney in November 2011. Recently he’s been criticized by some Apple Store employees for unfriendly policy changes aimed at increasing Apple’s retail profit margins.

More to come, obvi, but here is the official press release from Apple, which it put out with the most understated title of all time:

Apple Announces Changes to Increase Collaboration Across Hardware, Software & Services

Jony Ive, Bob Mansfield, Eddy Cue and Craig Federighi Add Responsibilities to Their Roles

CUPERTINO, California — October 29, 2012 — Apple® today announced executive management changes that will encourage even more collaboration between the Company’s world-class hardware, software and services teams. As part of these changes, Jony Ive, Bob Mansfield, Eddy Cue and Craig Federighi will add more responsibilities to their roles. Apple also announced that Scott Forstall will be leaving Apple next year and will serve as an advisor to CEO Tim Cook in the interim.

“We are in one of the most prolific periods of innovation and new products in Apple’s history,” said Tim Cook, Apple’s CEO. “The amazing products that we’ve introduced in September and October, iPhone 5, iOS 6, iPad mini, iPad, iMac, MacBook Pro, iPod touch, iPod nano and many of our applications, could only have been created at Apple and are the direct result of our relentless focus on tightly integrating world-class hardware, software and services.”

Jony Ive will provide leadership and direction for Human Interface (HI) across the company in addition to his role as the leader of Industrial Design. His incredible design aesthetic has been the driving force behind the look and feel of Apple’s products for more than a decade.

Eddy Cue will take on the additional responsibility of Siri® and Maps, placing all of our online services in one group. This organization has overseen major successes such as the iTunes Store®, the App Store℠, the iBookstore℠ and iCloud®. This group has an excellent track record of building and strengthening Apple’s online services to meet and exceed the high expectations of our customers.

Craig Federighi will lead both iOS and OS X®. Apple has the most advanced mobile and desktop operating systems, and this move brings together the OS teams to make it even easier to deliver the best technology and user experience innovations to both platforms.

Bob Mansfield will lead a new group, Technologies, which combines all of Apple’s wireless teams across the company in one organization, fostering innovation in this area at an even higher level. This organization will also include the semiconductor teams, who have ambitious plans for the future.

Additionally, John Browett is leaving Apple. A search for a new head of Retail is underway and in the interim, the Retail team will report directly to Tim Cook. Apple’s Retail organization has an incredibly strong network of leaders at the store and regional level who will continue the excellent work that has been done over the past decade to revolutionize retailing with unique, innovative services for customers.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

Now the conventional wisdom has shifted again: No TV set, and maybe very little else from Apple on the TV front, in the near future.

The newest version of this thought comes from Pacific Crest analyst Andy Hargreaves, who met with Apple CFO Peter Oppenheimer and media boss Eddy Cue on Wednesday. Here’s his takeaway on Apple TV, published in a note yesterday, and first flagged by Fortune’s Philip Elmer-DeWitt:

An Apple Television Appears Extremely Unlikely in the Near-term
Relative to the television market, Eddy Cue, Apple SVP of Internet Software and Services, reiterated the company’s mantra that it will enter markets where it feels it can create great customer experiences and address key problems. The key problems in the television market are the poor quality of the user interface and the forced bundling of pay TV content, in our view. While Apple could almost certainly create a better user interface, Mr. Cue’s commentary suggested that this would be an incomplete solution from Apple’s perspective unless it could deliver content in a way that is different from the current multichannel pay TV model.

Unfortunately for Apple and for consumers, acquiring rights for traditional broadcast and cable network content outside of the current bundled model is virtually impossible because the content is owned by a relatively small group of companies that have little interest in alternative models for their most valuable content. The differences in regional broadcast content and the lack of scale internationally also create significant hurdles that do not seem possible to cross at this point.

Bear in mind that the above is a mashup of Hargreaves’s analysis and guidance from Apple executives. So you’ll have to do some guesswork to figure out exactly what Apple is saying and not saying.

But it makes perfect sense, because it’s what Apple has been saying consistently when asked about Apple TV or any other new product. And it also reflects the truth that anyone who has tried to tackle a TV Of The Future has figured out: Making the tech work better is (relatively) easy. Making the content work better is really hard.

As Business Insider’s Jay Yarow notes, Hargreaves’s takeaway is a bit different from the newest round of Apple TV prognostication, kicked off by reporting in The Wall Street Journal, which posits that Apple is no longer trying to “disrupt” TV, but wants to work with the existing TV Industrial Complex, by making slight tweaks to the model.

But even that reporting suggests that Apple isn’t anywhere close to getting buy-in from cable programmers or providers. And so it can’t bring out new hardware — box, screen or otherwise — until it makes progress there.

That still doesn’t rule out any advances with Apple TV. It would seem totally reasonable for Apple to open its existing Apple TV box to outside developers, which would increase the utility of that hardware significantly without requiring any buy-in from TV Land. Just as Apple TV competitor Roku has already done.

Over the course of the trial, Apple — a company infamous for its corporate culture of secrecy and well-guarded product-development process — was forced to lay bare many internal details that until now have never seen the light of day.

For Apple enthusiasts and those curious about what happens behind Apple’s closed doors, it’s an information goldmine. Here are the five most interesting thing we took away from Week One:

Eddy Cue Liked the Idea of a Seven-Inch iPad
No one was a bigger public naysayer of Apple producing a smaller version of its iPad than Apple’s former CEO, Steve Jobs. He famously railed against the idea on a conference call in 2010: “It’s because we think the screen is too small to express the software,” Jobs said.

Yet, on Friday, an unearthed internal Apple email revealed a doozy: Even some of Apple’s top brass, like Senior Vice President of Internet and Software Services Eddy Cue, thought it was an area ripe for Apple’s taking.

“I believe there will be a 7-inch market and we should do one,” Cue wrote, going on to state that the now deceased Jobs even “seemed very receptive” after Cue mentioned it to Jobs several times.

Project Purple, or How the iPhone Came To Be
When Jobs charged SVP Scott Forstall with the task of creating the first iPhone in 2004, it was a gargantuan task, only made more difficult by the level of secrecy imposed on Forstall and his team. Jobs gave Forstall carte blanche to recruit any member of Apple’s engineering staff for Project Purple, as it was known. However, Forstall could tell them virtually nothing about the project, save for the fact that they’d be giving up nights and weekends for the next few years.

The team secured one of Apple’s buildings, and took over an entire floor. Forstall’s team got high-level badge access, though getting through to the project area sometimes required passing through five or six sets of locked doors.

Apple Designs Its Products at a Kitchen Table

Apple’s dream team of designers isn’t large. In fact, the company’s entire product portfolio stems from a group of 15 or 16 people, according to veteran Apple industrial designer Chris Stringer, all of whom convene around a kitchen table to discuss the exhaustive, laborious design process behind each Apple device.

“We’ll sit there with our sketch books and trade ideas,” Stringer testified. “That’s where the really hard, brutal, honest criticism comes in.”

Even Steve Jobs Doubted the iPhone at Times

As ubiquitous and popular as the iPhone is today, throughout the three-year process of designing, testing and building the phone, even Steve Jobs had doubts it would ever see the light of day.

“Smartphones existed, but they were more like little computers,” designer Stringer testified. “We were doing something unprecedented.”

Apple’s Insane Marketing Budget for the iPhone and iPad
When SVP of Marketing Phil Schiller took the stand, the exec shed light on the long road filled with doubt that it took to produce the iPhone and the iPad. But when those in the company realized they had nailed it, Apple put its all into pushing the products, with hundreds of millions in ad spending.

From the period where the first iPhone was released in 2007 until the end of fiscal year 2011, Apple spent more than $1.1 billion on marketing its iPhone and iPad devices worldwide. It seemed like a gamble. But with the two devices being the company’s fastest-selling products ever, it certainly looks to have worked out well for Apple.

Check out the list of links below to see all the other noteworthy moments that went down. And, of course, stay with us as we continue covering the trial on-site from San Jose this week.

Apple versus Samsung Full Coverage

“I believe there will be a 7-inch market and we should do one,” Cue wrote in the email, which forwarded an article written by a reporter that switched from the iPad to a 7-inch Samsung tablet. “I tend to agree with many of the comments below,” Cue wrote.

The email was introduced Friday during Samsung’s cross-examination of iOS chief Scott Forstall, who was among the recipients of Cue’s email. Forstall testified that Cue also used a 7-inch Galaxy Tab at some point.

Apple’s interest in a 7-inch tablet is noteworthy since the company is widely believed to be considering introducing such a product to complement its larger screen iPad. Analysts have said that they believe Apple has lined up supply for the screens needed to produce such a device.

Late Apple CEO Steve Jobs was an outspoken critic of such tablets, saying that one would only be practical if it came with sandpaper to make people’s fingers smaller.

Here’s an image of Cue’s e-mail, which was entered into evidence on Friday:

Apple versus Samsung Full Coverage

With those words, senior Apple executive Eddy Cue stuck to his take-it-or-leave-it business model of a 30 percent revenue share payable for transactions through the iTunes service. Despite my arguments to Mr. Cue in Apple’s Cupertino, Calif., offices last year on behalf of news publishers seeking different terms, to him there was no difference between a newspaper and an online game.

Read the rest of this post on the original site »

The satellite trucks are parked, the signs have gone up and the pundits have placed their bets.

Everyone seems to think they know what Apple has in store at its event on Wednesday: Namely, a higher-resolution iPad and, perhaps, a revamped Apple TV.

But it’s Apple, so you can never be too sure that there won’t be a surprise.

Whatever the company has to say, AllThingsD will be on hand to give live coverage and analysis. Check back here, starting just ahead of the event at 10 am PT.

9:35 am: We are being let in now.

9:54 am: Okay, took us a bit to get set up, but we are online and with a backup system in place, as well.

9:57 am: Tim Cook has taken the stage and offered up his “good morning,” to applause.

He promises he has a great morning planned. “I want to get started by talking about the post-PC revolution. … It is happening all around us, and at an amazing pace.” And, of course, he says Apple is leading.

9:59 am: Such devices have to be way easier than any PC has ever been.

We have three blockbuster post-PC devices, Cook says: The iPod, the iPhone and the iPad.

“Any company would be thrilled to have just one of these devices,” he said. Apple has all three. It sold 172 million post-PC devices, accounting for 76 percent of the company’s revenue, he said.

“Apple has its feet firmly planted in the post-PC future,” he said.

10:02 am: Stores are important because these devices are new to many people, Cook said, showing pictures of the company’s newest store, in Amsterdam, which marked its 362nd outlet.

Some 110 million people visited a retail store last quarter, Cook said.

10:04 am: Cue video of Apple’s new Grand Central Terminal store.

10:04 am: Another key element of our post-PC success is iOS, Cook says, showing an iPhone, iPod touch and iPad, with 315 million such devices sold through last year, including 62 million last quarter alone.

Now he’s talking about Siri and playing some clips of Siri from other parts of the world, such as Australia and France.

“Siri is your best friend, your intelligent personal assistant who gets things done just by asking,” he said. “Our customers tell us that they love it.”

In France, by the way, Siri is a guy.

Today we are bringing Siri to Japan, Cook announces.

10:07 am: Siri in Japan is part of iOS 5.1, an update being made available today.

10:08 am: More stats:

There are now 585,000 apps in the app store, which Apple announced on Monday has crossed 25 billion downloads (free and paid).

10:09 am: Talk has shifted to iCloud, which will now support movies in addition to music and TV shows. You can re-download movies you have purchased, and movies and TV shows will now be available in 1080p.

New Apple TV will now support 1080p. “I’ve been using one of these; the (quality) is off the charts.”

10:11 am: Eddy Cue comes out to demo the new Apple TV.

10:12 am: Tweaked interface. Also easier to get to third-party content, Cue said. Photo Stream also shows up automatically on new Apple TV, and in 1080p.

10:15 am: New Apple TV remains $99 and goes on sale next week, though you can order now.

“That brings us to iPad,” Cook said. “We think the iPad is the poster child of the post-PC (era).”

10:16 am: The set-up for the new iPad is classic Apple — momentum stats, glowing reviews, etc.

10:17 am: Goal of the iPad was to be the best device for some of the tasks people do every day, such as Web browsing and checking email.

“This is a tall order,” he said.

But, he said, Apple’s research seems to bear this out. Many iPad owners who have a PC and smartphone said iPad was their favorite Web browsing and email device. The iPad also won out over e-readers for book reading, and against game consoles and handheld game players for gaming, Cook said.

10:19 am: Cook notes that more than 100 tablets came to market last year, but they don’t offer the experience of the iPad. He shows Twitter running on a Samsung tablet, saying it is more like a blown-up phone application experience, while on the iPad it is a totally different experience.

Same thing with Yelp, he said.

“This is a key reason why momentum on iPad continues to build and the competitive tablets aren’t gaining traction,” Cook said.

Everyone keeps wondering who will come out with a product better than iPad 2.

“Stop wondering,” Cook said. “We are.”

A screen of new iPad shows in background. “It is amazing,” he said. “We are redefining the category that Apple created.”

10:22 am: Marketing chief Phil Schiller on stage to show off the new iPad.

10:23 am: First new feature is the Retina display, as expected. “Until you see it, you can’t understand how amazing this is,” Schiller said.

10:23 am: The giant wall display behind him, Schiller said, actually has fewer pixels than the new iPad.

The new iPad has 31 million pixels, with resolution of 2048 by 1536 pixels. That’s one million more pixels than an HD TV, Schiller said, and 264 pixels per inch.

“That is enough to call it a Retina display,” Schiller said. The iPhone has it when held at 10 inches from the face. The same is true of the new iPad, when held at 15 inches away or even somewhat closer.

10:27 am: The new iPad is powered by an A5X chip, with quad-core graphics needed for new high-resolution display. Apple says the older A5 chip had twice as much graphics power as Nvidia’s Tegra 3, while new A5X has four times the graphics power — again, according to Apple. “This is the best mobile display that has ever shipped,” he said.

10:28 am: New iPad has 5 megapixel camera with technology brought over from the iPhone 4S.

Schiller shows off some of the photos taken with the new iPad.

10:29 am: For more on the new iPad, check out this post from colleague Peter Kafka.

10:30 am: The iPad now has 1080p video recording, Schiller said.

10:31 am: The new camera also has image stabilization, Schiller said, showing a demo of that.

10:31 am: The new iPad also has voice dictation, thanks to a microphone button on the iPad’s virtual keyboard.

It supports U.S., British, and Australian English, along with French, German and Japanese.

10:33 am: New iPad will also support next-generation 4G LTE networks, such as the ones from Verizon and AT&T.

It will also support two other faster network technologies — HSPA+ and dual-channel HSDPA. That’s important, because LTE is rolling out slower globally than it is here in the U.S.

10:35 am: And we’re getting a demo of the real-world difference such high-speed networks can make when doing things like playing streaming video.

10:36 am: Working with AT&T and Verizon in the U.S., and Rogers, Telus and Bell in Canada on LTE, with other high-speed network support elsewhere in the world.

10:36 am: In the U.S., there will be two versions of iPad with LTE — one for AT&T’s LTE network, and the other for Verizon’s LTE network, because the two use different bands. It also can act as a hotspot, and can roam onto 3G networks worldwide.

10:37 am: Schiller in sales mode, recapping key new features.

He notes that a lot of these things sound like they would eat up a lot of batteries.

The iPad 2 boasted 10 hours for regular use and nine hours for 3G data use. And the new iPad has the same battery life.

10:39 am: It’s 9.4 millimeters thick and 1.4 pounds.

The new iPad will start, as the iPad 2 did, at $499 for 16 gigabytes, with $100 more for 32GB, and $200 more for 64GB. 4G wireless models cost an extra $130.

This is all the same as with iPad 2.

New iPad available March 16, with preorders starting today.

10:41 am: Schiller is talking about how software looks on the new display. Some stuff happens automatically, such as text size. But if developers do some work on their own, they can more fully take advantage of the new chip and display.

10:42 am: Schiller said they asked a few companies to try out the technology for a week and see what they could do. First demo is from Namco, a game designer known for Pac-Man and other titles.

They show a glimpse of a new flight-simulation game. The new iPad helps make the game more immersive, the company said, making it easier to lose yourself in the game with things like heat haze coming off of the plane’s engine.

Nice fly-by of the Golden Gate Bridge, too.

Game is Sky Gamblers: Air Supremacy, Namco said, which comes out later this month.

10:45 am: Next app demo is from Autocad creator Autodesk.

The company already has a line of programs, including SketchBook, for iOS.

Program being demoed is a new title, SketchBook Ink, a drawing app for line art.

10:47 am: Meanwhile, here are some of the things we are waiting to hear about: What will the data plan pricing be for new iPads? Will Sprint have an iPad to sell?

SketchBook Ink will be available in April, Autodesk said.

10:49 am: Third and final app demo from Epic Games, with president Mike Capps onstage.

It’s the latest version of the Infinity Blade saga: Dungeons.

The gamers in the crowd seem happy.

10:54 am: Apple’s productivity software, iWork, is being updated for the new iPad. So is iLife, with GarageBand players now able to jam with one another.

10:56 am: The iWork apps are available today in the App Store, for $9.99 apiece for new buyers. GarageBand remains $4.99 for new buyers, and both are free updates for those who have already bought them.

10:57 am: The iMovie app for iPad is also getting an update, including some new features, such as creating a faux movie trailer (or a real one, I suppose).

11:00 am: Apple is also bringing the third iLife app, iPhoto, to iPad. The iPhoto app joins the camera and photo library apps, Schiller said, for those who want to do more with their photos.

Among features are multitouch editing, professional quality effects, brushes, etc. Photos can be beamed among iOS devices. New way to share photos with friends — photo journals using iCloud.

11:03 am: Colleague Peter Kafka notes that while iTunes will now support re-downloading purchased movies, not all studios are behind the feature, so it will work with some flicks, but not others.

11:06 am: Apple demoing how multitouch can make photo editing more intuitive, such as changing the shadow or saturation in one part of a photo.

11:08 am: There are finger-powered brushes for doing all kinds of things, such as lightening a dark face in an otherwise well-exposed photo.

All the editing tools are nondestructive, meaning you can go back to the original.

There are a bunch of different effects, too, from different monochrome options to artsy and vintage ones.

Photo Journal creates a layout of photos, with those favorited or with a caption made larger. It looks a bit like how Facebook’s Timeline handles photos from an album.

You can throw in a map of the location, a date based on when photo was taken, even a weather icon that will use historical weather data to show what the temperature was like.

The resulting “journal” can then be stored on iCloud and shared as a Web link.

The new iPhoto works on both iPhone and iPad.

It will be $4.99 on App Store, starting today, Schiller said.

“We’ve now brought all of iLife to the iPad,” Schiller said. “Don’t let anyone ever tell you you can’t create on an iPad.”

11:14 am: And, cue video for new iPad.

11:14 am: So far, it’s just being called “the new iPad,” not iPad 3, iPad HD, or other names thrown about in recent days.

11:17 am: My recap:

Here’s what they’ve announced

New iPad with higher-res display, A5X processor, LTE support, improved 5 megapixel camera and 1080p recording. Same models and prices as iPad 2 was priced at. Separate LTE versions for AT&T and Verizon.

Apple TV with support for 1080p at $99.

And iPhoto for iOS, $4.99, starting today. Other iLife and iWork apps updated.

Apple also keeping iPad 2 in the lineup, starting at $399 for 16GB model, a $100 price chop.

11:21 am: Consensus seems to have nailed things pretty well, so far.

Cook now showing Apple’s TV ad for new iPad.

11:22 am: Cook, as Jobs did before him, wraps up by thanking Apple staff.

Again repeats his phrasing that leading Apple is the “privilege of a lifetime.”

Cook ends with a tantalizing tease.

“Across the year, you are going to see a lot more of this kind of innovation. We are just getting started,” he said.

11:23 am: And he exits, stage right.

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“Volume,” says McGraw-Hill CEO Terry McGraw, which is the usual answer for this kind of digital question. But there’s an important asterisk here, too. Normally, McGraw-Hill would sell its books directly to public schools, which would keep the texts for an average of five years.

Under Apple’s new textbooks plan, though, McGraw-Hill will try something different: It will sell its books directly to each student (the student could either pay out of pocket, or the school could fund the purchase via a voucher/code), who will use the book for a year, then move on. They’ll be able to keep the digital text, but won’t be able to resell it or pass it along to another student, and McGraw-Hill anticipates that another set of students will buy new books the following year.

So Terry McGraw figures that over five years he’ll generate the same total sales selling $15 e-books as he would selling $75 books. It’s not a total push, because in this model, Apple will take an undisclosed cut of sales — McGraw-Hill execs wouldn’t go into details, so let’s assume for now that it’s Apple’s standard 30 percent — but presumably McGraw-Hill can make some of that up by forgoing the costs of print and distribution.

(It’s important to note that all of this is about the high school textbook market, for now. While McGraw-Hill and other publishers sell college texts through other digital platforms, they still haven’t announced plans to do so with Apple.)

All of that assumes that the book pricing stays at $15. After Apple’s event, McGraw-Hill executives repeatedly used the phrase “pilot pricing” to describe their near-term plans. And they told me that they have the ability to change the price when and if they want.

But when I posed the same question to Apple media boss Eddy Cue just now, I got a much different response. “This isn’t pilot pricing,” he said. “All of our books will be $14.99.”

9:34 am: We’ve arrived. Here’s the scene outside the Guggenheim Museum.

9:43 am: As we wait for the event to get started, here are some “CliffsNotes” on what we might see from Apple today.

9:45 am: Hi there, from Peter! Lauren Goode and I, along with a couple hundred other people, are still stuck in the stairwell of the museum, waiting to be seated.

9:50 am: Line is moving slowly now.

9:52 am: Hello there. Apple has let us into the Guggenheim’s basement auditorium.

Just spotted McGraw-Hill CEO Terry McGraw in the audience. Not sure if he’s sitting with us, or will be popping up onstage.

9:54 am: Ah. I see that the American corporate mandate to play Adele at every event has continued into 2012. So we are still rolling in the deep.

We could have had it all, you know.

9:57 am: Lights down. Adele still belting.

9:58 am: First up: Apple marketing head Phil Schiller.

“Education is deep in our DNA, and it has been from the very beginning.”

Apple has a unique understanding of learning, student achievement. “We’re so proud to take part in anything we can do to help students learn.”

New change in schools via iPad is “profound and remarkable.”

Shot of toddler watching Dora on iPad, which looks very familiar.

But education has challenges, “which are pretty profound.”

Life is tough for high school kids in the U.S. Freshmen have a 70 percent chance of graduating. In “hard-hit urban areas,” that’s 60 percent.

Even if you do graduate, you probably won’t be prepared to compete internationally. List of poor showing by U.S. in world education rankings.

Now a video reel of teachers bemoaning the state of affairs, backed up by swelling music track.

Basic message: Schools are in lousy shape. “We need a reset. We need a way to find out what’s wrong, and fix it,” says last teacher, in a nice sweater.

Schiller is back. “No one person or company can try to fix it all.” But Apple can help. Specifically with “student engagement.”

Of course, kids like iPads, Schiller says. Extolls virtues of iPad, which we don’t need to tell you about here. “Affordable, not only for families but for schools.”

20,000+ education apps built specifically for iPad.

And lots of iBooks would work very nicely in schools, too.

1.5 million iPads in use in “education institutions.” We want to accelerate that. So we’re announcing two initiatives:

10:06 am: 1) “Reinventing textbooks.”

Books are awesome. They’ve transformed society and will always be with us. But they’re not an ideal learning tool for kids. Cumbersome, get dog-eared, “written-in, worn, just not the ideal teaching tool.” Image of badly-beaten book.

Books aren’t portable enough. Not durable enough. Not interactive. Not searchable. Can’t be updated. “The content is great,” though.

10:07 am: But the iPad? That’s awesome. It’s all of those things that a lowly book is not.

But “can you get amazing content turned into a new generation of digital books?”

10:08 am: So here is iBooks 2 — a “new textbook experience for the iPad.”

“These are beautiful books.” Here’s a demo, with Roger Rosner, who has helped build the new product.

Biologist E.O. Wilson introduces a new digital textbook, which features multitouch, video, navigation via thumbnails, etc. “These are gorgeous, gorgeous books. They’re really in a class by themselves.”

“Clearly, no printed textbook could compete with this.”

Lots of pinchy-zoomy. “Again, nothing like that on the printed page.”

So here I will point out that the most obvious issue is the same one that magazine publishers faced during the initial iPad launch — someone needs to figure out how to pay for a system where you can build all this new cool digital stuff, while you continue to publish your old paper-and-ink products. After some initial experiments, most magazine guys have retreated to more or less republishing the existing product, with a few bells and whistles.

Okay, back to Rosner, still demoing cool stuff like interactive text that lets you access a glossary by highlighting a word. “That is so much better than a paper glossary could ever hope to be.”

10:14 am: Hopefully, the pictures that Lauren Goode is taking give you a good idea of what Rosner is showing off. This stuff does look gorgeous, of course.

Half the crowd applauds.

10:15 am: Still demoing. Quizzes and review questions built into book. “The bottom line is immediate feedback.”

Can highlight text with finger, change color, etc. Add notes.

10:17 am: Turn notes into study cards. Can turn glossary terms into study cards. “No more ever having to make paper flash cards, right?”

More applause for card demo. “I don’t think there’s a textbook that’s ever made it this easy to be a good student.”

New textbook category in iBookstore.

10:20 am: Demo over, Schiller back up. Summarizes selling points.

10:20 am: Now on to creation. “That’s just as important.”

iBooks Author (i.e., what people have been calling “GarageBand for books”).

“Easy to use, feature-rich,” will work for any kind of book, not just textbooks. But “focused most of all” on textbooks.

10:21 am: Rosner back up. “Traditionally, creating electronic interactive books has been really hard.” We can fix that.

Uses some familiar iWork workflow. Drag and drop. Can type into editor or bring in Word files, etc.

More applause after program reformats and flows Word doc.

This looks very slick and easy. No surprise there.

Ah. I can now see that McGraw-Hill CEO Terry McGraw is in the audience, soaking it in with the rest of us.

Can integrate Keynote into text. More applause for that.

Rosner still demoing. If you’ve ever been involved in making e-books before, “you know that this is a total miracle in terms of time savings.”

More applause for fast turnaround between creation and working book showing up on iPad. “I just think that’s totally awesome, right? In just five minutes flat, we created a totally interactive book.”

More applause, and some excited hoots.

10:29 am: Schiller back. “Anyone can create stunning, interactive books.”

Authoring tools “often cost hundreds to thousands of dollars.” But we want to make sure that anyone can use this — even teachers. New iBooks Author will be free.

Available today on Mac App Store. More applause.

Reminder that iBookstore will have new textbooks category.

Partners (this is key part).

High school textbooks. Will launch at $14.99 or less.

Names of publishers? Have yet to hear from Schiller.

Here we go: “We have had some phenomenal companies really work with us”: Pearson, McGraw-Hill, Houghton Mifflin Harcourt. “They have been great partners with us.”

McGraw-Hill, for instance, wil be providing algebra, biology, chemistry books, etc. “They are incredible.”

“Can’t overemphasize” how important it is for publishers to work with us.

Also working with DK Publishing. Four new kids’ books.

Another partner: E.O Wilson Biodiversity Foundation. “If you don’t know E.O. Wilson, you should.” More applause.

First chapters of “Life on Earth” are available now, for free. Future chapters will be available at low price.

And now, a video. “We couldn’t help ourselves … I hope you enjoy it.”

More hopeful teachers and music this time out.

So while video is rolling, let’s review: By far the most important announcement today is that Apple has partnered with three of the big textbook publishers. Don’t have details on that, but the fact that this isn’t a flat-out end run around the textbook industry is crucial. Obvious parallel here is iTunes music launch in 2003, when Apple worked with the big labels instead.

Eddy Cue, who many of us thought would be at event, shows up in video, instead.

And Terry McGraw is in the video, as well.

So is Pearson CEO Marjorie Scardino.

John Deasy, superintendent for Los Angeles Unified School District.

10:44 am: Video over, more applause. Ah. Schiller has more. Here comes Eddy Cue.

10:45 am: As John Paczkowski noted early this month, Apple is overhauling iTunes U.

700 million downloads of iTunes U content in the last four years. So far, mostly used to download college lectures. (I’m responsible for one of them! A Robert Shiller talk I keep meaning to listen to.)

“We want to let teachers do a whole lot more.” Create entire classes online. Via all-new iTunes U app.

Jeff Robbin, VP of iTunes, for demo.

Not just books, but “new complete, online courses.” Here’s a chemistry course from Duke University.

Some of this is gunning at Blackboard, the college standard for online education software, which lots of people (users and would-be competitors) would like to disrupt.

Ability for teachers to post notes for students, download videos to iPad or stream, etc.

Demo over, more applause. Hard to explain/see how this will work unless you’re actively using it within the context of school, I think.

Cue rattles off list of colleges using iTunes U already. Six of them have used the new software — Duke, Stanford, Yale — and have created more than 100 courses already. “All of it for free.”

So far, mostly used for higher education. But now available for K-12. More applause.

10:54 am: Cue off, Schiller back.

Love of education “has been instilled in Apple since the very beginning. And it’s as true today as it ever was before.”

“We hope that educators will look back on today’s announcements just as fondly” as past Apple education initiatives.

“I hope you’re as excited about these announcements as we are.” Schiller finishes up, event over.

Thanks for tuning in. We’ll now get a chance to play with some of this stuff hands-on, and I’m going to talk to at least one of the publisher partners Apple talked about today. More in a bit.

My colleague John Paczkowski’s sources have already told him that Apple was planning to use the event to talk about a textbook initiative, and today’s brief invitation certainly doesn’t discourage that line of thinking. Per John’s Jan. 3 story:

Sources close to the company tell AllThingsD that the event will involve an initiative related to iBooks in education, presumably with some sort of tie-in to iTunes U.
Details beyond that are slim, though we’re told that this is an effort Jobs had been involved with in the months prior to his death. That could mean that it’s the textbooks-on-iPads plan that Jobs famously discussed with biographer Walter Isaacson. Fox’s Clayton Morris is hearing something similar.
The textbook market is certainly ripe for digital disruption, but the players that have emerged so far are pumping in a lot of cash with little to show for it.

If you want to start speculating — of course you do — it’s worth noting that none of the big textbook publishers are working with iBooks and Apple’s iOS ecosystem in any significant way, though Apple and the publishers have had on-and-off conversations for years. Perhaps some of that changes this month, or perhaps Apple pushes into education without working with the traditional players.

This will be Apple’s second visit to the iconic Guggenheim in a year. Last February, media boss Eddy Cue showed up there for the launch of the Daily, News Corp.’s tablet newspaper. (News Corp. also owns this Web site.)

Teresi will report to media boss Eddy Cue, according to sources familiar with the hire. He fills a slot last occupied by Andy Miller, who sold his Quattro mobile ad company to Apple two years ago and left last summer. Bloomberg first reported Teresi’s move this afternoon.

Quattro formed the core of iAd, which Apple has used to tackle the mobile ads market dominated by Google. But advertisers have been slow to warm to the program, and Apple has been trying to retool its approach, by lowering advertiser spending requirements and offering more flexibility in implementation.

At Adobe, Teresi had helped steer the publishing company through a series of advertising acquisitions, including Efficient Frontier, Demdex and Auditude. Prior to that he had been at Quantcast and Yahoo.

According to sources close to the situation, Apple is planning an important — but not large-scale — event to be held in New York at the end of this month that will focus on a media-related announcement.

Per the usual caveat, the tech giant is well known for moving around their public show-and-tells, so this could certainly change at any moment.

But, for sure, several sources underscored that the event is not related to an upcoming version of the iPad 3, the next iteration of the popular tablet device that many expect to be available in 2012.

Also unlikely, the rollout of Apple’s large-scale rethinking of the interactive television initiative that it has been working on. While the company is expected to launch a new Apple TV product later in 2012, such an event would almost certainly be held in the heart of the industry in Hollywood or at least in Silicon Valley.

That leaves some kind of advertising or even publishing announcement, which might be the case, since Apple SVP of Internet Software and Services Eddy Cue is reportedly involved.

Cue is in charge of a large swath of Apple’s media units, including the iTunes Store, App Store, iBookstore, as well as iAd and its iCloud services.

It’s well known in the ad industry that Apple has been searching for a new head of its mobile advertising unit, since Andy Miller left last summer.

But such an appointment has not been made as yet, said sources.

The last time Cue was in New York for an event, by the way, was nearly a year ago, when Apple helped launch News Corp.’s online magazine, The Daily.

And Apple also recently opened a splashy new retail store in Manhattan’s Grand Central Terminal, and has been refurbishing its flagship glass cube on Fifth Avenue, too.

The holiday-having Apple PR team declined comment, but wished me a “happy, happy new year.”

In recent weeks, Apple executives have discussed their vision for the future of TV with media executives at several large companies, according to people familiar with the matter.

Apple is also working on its own television that relies on wireless streaming technology to access shows, movies and other content, according to people briefed on the project.

Read the rest of this post on the original site »

Set to launch with iCloud on Oct. 12, the app is different from check-in style services like Foursquare, and most similar to Glympse, the start-up that recently raised $7.5 million. It’s also akin to the original Google Latitude, which offered continuous location sharing intended for close friends and family to track each other (but then later added check-ins).

Apple’s Eddy Cue said the app would include simple privacy controls and parental restrictions.

It wasn’t clear to us whether “Find My Friends” is only for iPhones or will be available on all iOS devices, but it’s one of those two.

“Find My Friends” had first been revealed through code in an iOS developer build in January.

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Later this morning, the company will debut its latest iPhone, the fifth in the handset’s history. Though it’s not precisely clear what form it will take, most observers expect the fifth-generation iPhone to boast a dual-core A5 processor, one gigabyte of RAM, an improved camera, a dual-band GSM/CDMA chip that will transform it into a so-called “world phone” that can support multiple wireless network standards, and a rumored virtual personal assistant that arose out of Apple’s 2010 acquisition of Siri.

Beyond that, we’re likely to hear more about iCloud (which may steal the show) and its promise of a simple, seamless sync, iOS 5 and its nearly 200 new features, and perhaps an update or two to the company’s long-running iPod line. We’ll also get to watch newly installed CEO Tim Cook make his first big product introduction, an event that may well set the tone for his new role.

So join us here for what promises to be an exciting morning. Our live coverage begins at 10 am PT.

Live Blog

8:50 am: We have arrived on the scene at Apple’s campus in Cupertino, Calif.

9:22 am: The real reason why they held the event in Cupertino: omelettes!

9:44 am: The doors have opened and attendees are filing into the auditorium to the sound of Eric Clapton’s “Let It Rain.”

9:48 am: Lots of tech luminaries in the audience here today. A quick scan of the room reveals Twitter CEO Dick Costolo, AT&T Mobility President Ralph de la Vega, Verizon chief marketing officer Marni Walden, longtime Apple analyst Charlie Wolf and newly minted Qualcomm COO Steve Mollenkopf.

9:54 am: Most of Apple’s executive team — Phil Schiller, Eddie Cue, Bob Mansfield, etc., are now seated down front. The auditorium’s pretty much filled to capacity. We should be starting any moment now.

9:58 am: Five minute warning.

10:00 am: The lights dim and here’s Tim Cook, ready to deliver his first big product announcement. Lots of applause.

10:02 am: This is my first product launch as CEO — I’m sure you didn’t know that. I love Apple, and I consider it a privilege to work here. I am very excited by this new role.

10:03 am: I want to welcome you to Apple and to this room, which has a particular significance for us. In this room we launched the MacBook Air and other products … this room reminds us of the innovations we’ve announced at Apple.

10:04 am: This is an extraordinary time for Apple, says Cook, before running through some metrics. He talks briefly about Apple’s new store in Hong Kong, which recently launched.

10:05 am: Tim Cook is using Steve Jobs’s playbook, beginning with a series of updates, starting with Apple retail. Apple just opened two stores in China — one in Hong Kong and one in Shanghai.

“There is amazing momentum here,” Cook said, showing the all-glass staircase. “Only Apple could do this.”

Also doing good business — it had the best Day One store performance of any store.

10:06 am: We sold more Macs on opening day in Hong Kong than we sold at any other store opening in the world, says Cook. Now a video documenting the launch of the Hong Kong store.

10:07 am: Cook steps back into the spotlight. “We now have six stores in China. We now have 357 stores in 11 countries.

10:08 am: Moving on now to product updates. First up, some thoughts on Lion. Cook cites Walt’s review of Lion and his remark that it’s one of the best operating systems ever. “I don’t think I could have said it any better,” says Cook. He adds that, to date, six million copies of Lion have been downloaded.

10:10 am: At the same time we announced Lion, we announced the MacBook Air. It’s wicked fast. Our customers love it and our competitors are desperate to copy it, Cook says. The Mac and MacBook are the number one best-selling desktop and notebook in the United States.

10:11 am: More metrics, the Mac’s installed base is approaching 60 million around the world.

In U.S. retail, says Cook, Macs are selling one out of four PCs.

10:14 am: Next up: Music. “It was only 10 years ago that iPod launched and it not only revolutionized the way we listen to music, but it revolutionized the entire music industry. It reminded us why we love music so much. It made music part of our lives again. … The iPod quickly became the number one music player in the world.” To date, Apple has sold more than 300 million iPods.

10:15 am: Cook notes that the iPod is still an important business for Apple and the halo effect still remains strong. “The iPod is still a lot of people’s first introduction to Apple.”

Sixteen billion songs downloaded on iTunes.

10:15 am: Moving on to iPhone now. “This is probably why most of you are in the room today.” Cook notes the device’s extraordinary growth. Ninety-three percent of the Fortune 500 are testing or deploying the iPhone.

Customer satisfaction for the iPhone is very, very high, says Cook. “The iPhone is pummeling the competition.” He cites the recent ChangeWave and J.D. Power customer satisfaction surveys.

10:18 am: Talking now about the iPad. “IPads are showing up everywhere. IPads in schools are helping kids learn in amazing new ways. … Every state in the U.S. now has an iPad pilot program or deployment. And almost 1,000 schools have a one-to-one program … About 1,000 universities across the U.S. have iPad programs.”

10:20 am: “IPads are also showing up in airplane cockpits and in hospitals. Over 80 percent of the top hospitals in the U.S. are either testing or deploying iPads. … 92 percent of the Fortune 500 are testing or deploying the iPad.”

A stunning metric considering the device has only been available for 18 months.

Three out of four tablets sold in the U.S. are iPads.

10:22 am: Nice. Cook name-checks ATD. “Consumers don’t want tablets, they want iPads.”

10:23 am: Cook welcomes Scott Forstall to the stage to talk about iOS.

“IOS is the number one mobile operating system with 43 percent of the market,” says Forstall. He also notes that the iTunes App Store is the number one store for mobile apps. Customers have downloaded more than 18 billion apps to date. There are one billion downloads per month. Apple has now paid out more than $3 billion to developers.

10:25 am: Forstall talking about a new app called Cards. Allows you to create greeting cards on your iPhone or iPad. Apple will produce them and distribute them. “You make the card. We do the rest. … We’ll even send you a push notification the day your card is delivered.”

10:26 am: Price: $2.99 in the States, $4.99 internationally.

10:28 am: Now, a broad overview of iOS 5. Developers love it, says Forstall. He notes the OS has more than 200 new features, though he’s only going to talk about 10. Notifications: iMessage, a new messaging service between iOS users. “IMessages are pushed to all your devices so you can start on one and pick up on another.”

Next up, a brand-new app called Reminders. Offers location-based reminders via geo-fence. “Remind me to pick up my laundry when I leave work.”

10:31 am: More: Twitter integration. “We’ve deeply integrated Twitter into iOS. You can tweet photos, Web sites from Safari, videos from YouTube.”

Next up: Newsstand. “There are a lot of publications that are now building subscriptions for the iPad — the New Yorker, GQ, Vanity Fair. Newsstand organizes your subscriptions and downloads new issues in the background.”

10:31 am: Moving on now to the camera, which Apple has also significantly updated. Better-quality photos and new ways to edit and improve them on your iPhone.

Next, Game Center: 67 million people are using Game Center. Apple has added friend discovery and game recommendations to the service, among other things.

10:34 am: Next up, Safari: Forstall talks briefly about Reader, which makes Web pages easier to read. He moves on quickly to tabbed browsing before jumping ahead to Mail, which has been enhanced with better search functionality, etc.

Now, PC-free. “There’s no need for a computer. You take your iPhone out of the box and you can set it up.” Also: wireless updates.

10:35 am: IOS 5 will be available as a free update on October 12.

10:36 am: Eddie Cue takes the stage to talk about iCloud. Quick overview of how iCloud manages photo storage and distribution. “It just works.”

“Over a third of the music we sell in the iTunes store is purchased on iOS devices,” says Cue. He notes that once iCloud launches, “songs purchased via iPhone or iPad on iTunes will automatically be downloaded to a user’s Mac for no additional charge.”

Moving on now to PhotoStream. “With PhotoStream, photos taken on your iPhone are automatically sent to iCloud and then pushed to your other devices. They even download right to iPhoto on your Mac.”

10:38 am: Now, Documents In The Cloud. Same scenario. Documents synced to iCloud are updated across devices. Start editing on your Mac, continue on your iPad and finish on your iPhone.

10:39 am: More from Cue: “Buy a book on your iPad, start reading it, move to your iPhone and continue right where you left off.”

Contacts and Calendars work the same way. Update once, update everywhere.

10:40 am: Find My iPhone has been updated to find Macs as well.

New app: Find My Friends. Locates family and friends via same sort of Find My iPhone mechanism. Timed location sharing. Easily locate friends and family, temporary sharing option, simple privacy controls and great parental restrictions.

10:42 am: Moving on now to iTunes Match. “With over 20 million songs, Apple has the largest music store in the world. We’ll scan your music library and match it, and if we find something we don’t have, we’ll upload it.” Again, the goal here is data ubiquity across devices.

ITunes Match is $24.99 per year.

10:45 am: Cue wraps up with a broad overview of all the iCloud services he just mentioned. ICloud ships on October 12. ITunes Match goes live closer to the end of the month.

Now, a video break. Promo for iCloud that touts the same features Cue just described.

10:46 am: Phil Schiller takes the stage to talk about iPod.

10:47 am: “We’re still making great iPods. In fact, it’s the best lineup we’ve ever made.”

Apple’s rolling out a few updates to the line today. First, the iPod nano, which has been made easier to navigate and enhanced with some fitness-related improvements, plus UI additions (new clocks, etc.). Mickey Mouse watch!

New prices, $149 for 16GB, $129 for 8GB.

10:50 am: Next up: the iPod touch. Schiller notes that the device is now the most popular portable game player in the world.

10:51 am: Schiller says iOS 5 and iCloud will bring tremendous upgrades to the iPod touch.

Apple’s now offering a white version of the touch.

$399 for 64GB, $299 for 32GB, $199 for 8GB. They’ll be available on the 12th.

10:53 am: Here we go. Moving on now to the iPhone.

10:54 am: “Despite competitors trying really hard to copy the iPhone,” says Schiller, “they just haven’t been able to do it. … How do you follow up a hit product like the iPhone 4? … With the iPhone 4S.”

Retina display. Same design with metal band around exterior.

10:55 am: IPhone 4S will run on the same A5 chip that’s in the iPad. Also up to seven times faster graphics, which will do some amazing things for games.

Mike Capps from Epic Games takes the stage. Talks about Infinity Blade and its forthcoming successor Infinity Blade 2. Amazing graphics. Dynamic Light Rays, something the company used in Gears of War, has been brought to the iPhone.

This is really impressive. Very cinematic, but running in real time.

10:58 am: Infinity Blade 2 will be available December 1.

10:59 am: Schiller returns to talk about battery life. Eight hours of 3G talk time, 10 hours of video, etc.

11:00 am: Moving on to the antenna, which now intelligently switches between two antennas to transmit and receive. Better call quality and faster data. Downlink speeds are double the iPhone 4: 5.8 up, 14.4 down.

Heard these numbers before? Schiller says these are the same numbers that rivals often claim are 4G.

11:02 am: As expected, Apple has unified its CDMA and GSM devices into a single world phone.

11:03 am: There’s a new camera system as well.

“For the iPhone 4S, we set our sights on competing not with other phones, but with point-and-shoot cameras. … So we’ve added an eight megapixel sensor that shoots 3264×2448. … we’ve also added backside illumination with a sensor that gathers 72 percent more light. … On top of that we’ve placed a hybrid IR filter for better color accuracy … and we have a five-element lens that offers 30 percent more sharpness, f/2.4 aperture.”

11:06 am: Built in to the camera: Face detection and better auto-white balance. The new camera is also significantly faster. Takes just 1.1 seconds to take a first picture and .5 seconds more to take a second.

“I don’t know what Droid Bionic users do between pictures,” says Schiller. “Get coffee, I guess.”

11:08 am: Showing some photo examples now. Great sharp colors and detail.

11:09 am: Moving on now to video. The 4S shoots 1080p HD video. Some applause for that. Also features video image stabilization, temporal noise reduction.

Quick video demo. Hot air balloon ride.

11:11 am: Moving on now to AirPlay. Quick overview of the technology and then the news: Apple is bringing AirPlay mirroring to the iPhone.

11:12 am: Schiller wraps up by rehashing the announcements he’s just made. He’s really stressing iOS 5 and iCloud.

11:13 am: “But we really haven’t discussed the best feature yet … it’s all about voice.”

New feature: Siri, an intelligent assistant that helps you get things done just by asking.

“What we really want to do is just talk to our device and we want to talk to it any way we’d like.”

11:14 am: Schiller invites Forstall back on stage to do a Siri demo, but cautions that it’s still in beta so things could go awry.

Forstall asks Siri, “What is the weather like today?” The phone replies with, “Here is the weather for today,” and a screen detailing the weather.

11:16 am: “Do I need a raincoat?”

Siri: “It sure looks like rain today.”

Siri actually understands the concept of “raincoat” and how it relates to weather. Pretty sweet.

11:16 am: “What’s the time in Paris?”

Siri gives an accurate time and shows a clock.

“Wake me up tomorrow at 6 am.”

Siri sets an alarm and tells the user that it has done so.

11:17 am: “How’s the Nasdaq doing today?”

Again, an accurate vocal reply and a screen showing a market chart.

Apple has partnered with Yelp to integrate restaurant reviews. It has also integrated maps. “Give me directions to Hoover Tower.” Siri provides them.

11:19 am: You can also ask Siri to read your text messages.

Forstall demonstrates an exchange in which he receives a lunch invitation, checks his calendar, and sends a reply to the original sender with a suggested date for lunch. This is all done hands-free, simply by talking to the phone.

11:21 am: “Remind me to call my wife when I leave work.”

Siri creates a reminder with a geo-fence so that when he leaves work, it will remind him to call his wife.

11:22 am: “Search Wikipedia for Neil Armstrong.”

Siri heads right for Safari and pops the Armstrong page on Wikipedia.

Apple has also partnered with Wolfram Alpha to do dictionary searches, calculations. “Define mitosis.” “What’s the exchange rate on the Euro right now?”

11:24 am: “How many days until Christmas?”

Eighty-two, in case you were wondering.

11:24 am: Forstall notes that you can’t use Siri to do everything, but you can use it to do a pretty broad spectrum of things — call people, create reminders, compose and dictate email, traffic and directions, weather, stocks, set timers, contacts, search Web, create notes, search “wolfram alpha.”

“Who are you, Siri?”

“I am a humble personal assistant.”

11:27 am: Schiller returns to the stage. He adds that Siri takes dictation, before noting that the service is both contextual and conversational.

When iPhone 4S launches, Siri will be available in English, French and German, with more languages to follow.

11:28 am: Now, another video.

Typical Apple reel with the company’s executive bench talking about the design and development of the iPhone 4S.

11:32 am: For more on Siri, check out this story.

11:30 am:

iPhone 4S
64GB for $399
32GB for $299
16GB for $199

iPhone 4 will now be available for $99, 8GB only.
iPhone 3GS, 8GB for free.

Very aggressive pricing.

IPhone 4S preorders begin Friday. The phone will ship on October 14.

11:35 am: IPhone 4S will be available on AT&T, Verizon and, yes, Sprint.

When the rollout is done the iPhone will be in 70 countries, on 100 carriers.

11:36 am: Cook returns to wrap things up with another overview of the morning’s news.

“When you look at each of these things, they’re industry-leading in and of themselves, but what puts them out front is how they’re engineered to work together so well. Only Apple can make such powerful hardware and services like this and bring them together. I am so proud of Apple and all the people that worked so hard to make these things a reality.”

And with that, he leaves the stage.

And so ends a workmanlike job by Cook in his first big product introduction. But you can’t help but miss the showmanship that Jobs always brought to these events; he would have made the Siri technology explanation really sing.

The event’s over. Thanks for reading.

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Tuesday, Oct. 4.

That’s the day Apple is currently expected to hold its next big media event, according to sources close to the situation, where the tech giant will unveil the next iteration of its popular iPhone.

While there have been a lot of conflicting reports about the exact timing of the event, including some that pegged it as taking place this month, AllThingsD had previously posted that the rollout of the iPhone 5 would be in October.

While Apple could certainly change its plans anytime, sources said that the Oct. 4 date has been selected by the company to showcase the iPhone 5. Sources added that the plan is now to make the new device available for purchase within a few weeks after the announcement.

And while the iPhone 5 is a much-anticipated handset, the event itself has a lot more importance for Apple than many previous ones.

That’s because it will be newly installed CEO Tim Cook’s first big product introduction, and the place where the public will get a first lengthy impression of him that may well set the tone for Cook’s new role.

And that’s why, said sources, although he’s never quarterbacked an Apple product announcement before, Cook is certain to preside over the iPhone 5 rollout.

He has to, of course. To pass the presentation on to anyone else — even one of Apple’s key executives, such as Phil Schiller, who has handled the Macworld and Worldwide Developers Conference keynotes in 2009 — would undercut Cook’s new role and reinforce public perception that its legendary outgoing CEO and co-founder Steve Jobs is Apple, and that it will be a different company without him.

So, like his predecessor, and as Jobs’s right-hand man and chosen successor, Cook is expected to be the main presenter at all big Apple media events going forward.

That said, according to sources, he’s sure to have help from Apple lieutenants, such as marketing head Schiller, iOS chief Scott Forstall and Eddy Cue, recently named SVP of Internet Software and Services.

Still, the pressure will be on Cook to turn in a good performance at the event, especially after what has so far been a very smooth leadership transition at Apple.

What will be interesting to see, of course, is if Jobs himself will also make an appearance, which is something that is likely to be determined by his health, in a decision that will be made very close to the event.

And while putting Jobs onstage with Cook could diminish the new leader’s first public effort, what better “one more thing” than Jobs himself making a cameo appearance?