Silicon Valley venture firm Andreessen Horowitz said today that it was joining well-known investors Ron Conway and DST Global’s Yuri Milner in the Y Combinator Start Fund, which gives $150,000 to each start-up in its semi-annual group.

Andreessen Horowitz will be investing $50,000 of the total in each entrepreneurial effort, starting with the next “class” of up to five dozen companies later this month in the well-regarded incubator.

The money comes in the form of convertible debt, which is a loan that can convert if a start-up raises a funding round. Start-ups can refuse the money, although most do not.

“I can’t tell you how impressed we have been with the quality of the start-ups that Y Combinator has had,” said Marc Andreessen in an interview with me this afternoon. “[Co-founders Paul Graham and Jessica Livingston] have become the consigliere to a whole new generation of entrepreneurs.”

Indeed. Y Combinator assembles these start-ups twice a year, giving them about $15,000 to work on their idea, but — more importantly — providing a lot of support and entree to powerful investors in Silicon Valley. Its efforts have been critical to the beginnings of many successful companies, such as Reddit, Loopt and Scribd.

“So many of the high quality seed deals have been coming from Y Combinator and we wanted to be close to all those companies,” said Andreessen. “It’s a great view of what’s coming next from the very best start-ups.”

“They haven’t shut us down,” Shah said. Apple last week changed its ranking algorithm to downplay download numbers in an effort to crack down on certain cross-marketing practices, including those core to the way TapJoy makes its money. Apple has also rejected certain apps over the last few weeks that include various TapJoy ads, Shah said.

TapJoy was particularly affected by Apple’s changes as its business model works by allowing mobile app developers to essentially pay to get a certain amount of downloads and installations of their apps. Typically, users of one app are rewarded with virtual currency or other inducements for downloading and using another application. In many cases, the goal of TapJoy customers is to get a new application into the Top 25 of an app store category, said Loopt CEO Sam Altman.

The methods used by TapJoy–and similar approaches–have become increasingly important in a world where developers are struggling to get attention amid a flood of new mobile applications hitting the market.

Their comments came during a discussion at the VentureBeat Mobile Summit in Sausalito, Calif.

Shah said TapJoy doesn’t yet have total clarity on what will appease Apple, but said it is making some changes, such as guaranteeing that no single app will be used to vault another app into the top of the rankings.

“They (Apple) have rejected certain apps for a certain mechanism,” Shah said. “When we have tweaked that mechanism we have seen apps approved.”

Shah said that his company is committed to making the moves it needs to make in order to ensure its business model is sustainable.

“I think we are very early in the market,” Shah said. “We are going to have to tack a few ways.”

On Tuesday Loopt, a social network catered to mobile-device users, unveiled a plan to allow advertisers to send alerts to Loopt users, based on their location, when they want to offer them an limited-time deal.

A restaurant looking to fill empty seats, for example, could alert a nearby Loopt user of a special price for a meal if they arrived first, says Loopt’s chief executive Sam Altman, in an interview. “We’re very excited about this,” he says.

The initiative, called Reward Alerts, will begin later this month and builds on prior efforts by Loopt, other social-networking services such as Facebook and Foursquare and big Internet companies such as business-review site Yelp and search giant Google to tap into the market for local-business advertising.

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BoomTown arrived late to the Facebook mobile event for the press due to traffic related to the parade today for the San Francisco Giants’ World Series victory–and where I would much rather be right now.

Go Giants!

10:53 am PT: In any case, I am here in the cafeteria of Facebook again, where the company continues its attempts to take over the known digital universe before Google does.

Currently, the social networking giant notes “200 million people around the world are now actively using Facebook from a phone, more than triple the number just one year ago.”

Thus, some new tries of a lot of stuff, such as single sign-on.

Meaning you sign on a Facebook and it signs you on all over the Web (or at least at those in partnership with the company).

Such as at Groupon and Zynga.

This single sign-on stuff has been tried by many before, a kind of Holy Grail of the Web, and where everyone has failed.

But it also the proverbial camel’s nose poking in your digital tent.

As in, the whole Facebook body is surely coming in next.

Facebook’s exec in charge of all this, Eric Tseng, talks about a virtuous circle of single sign-on, happy users and happy developers, sounding as if this is the single biggest problem facing humanity.

A password crisis! Silicon Valley to the rescue!

Perhaps the only issue the now damaged administration of President Barack Obama could actually get some legislation passed on now.

“My fellow Americans, we have too long be stuck in a miasma of forgetting which name of our dog we used for our password plus the number one…”

How much do I want to be at Giants parade right now? Much!

11:02 am: Next, we move onto more ability to show your location to friends on Facebook better and make sense of it by opening location APIs.

More heavy pontificating about what a disaster it is that we cannot properly see where our friends are on Facebook in the real world.

Of course, this leaves out the pertinent point that my “friends” on Facebook are exactly those I do not want to run into at the Starbucks on El Camino Real in Palo Alto, Calif.

Loopt Founder Sam Altman comes up to show off the integration with Facebook Places, where this problem is solved anyway.

“We believe data wants to be unified,” says Altman.

Certainly if you are the Borg, you want it to be unified. Me, not so much.

11:11 am: Now comes the attempted Groupon-killer from Facebook, which is creatively called “Deals.”

This is essentially allowing Facebook Places to locate a person and then merchants to offer deals when a user is nearby via a platform offered by Facebook.

You can do individual deals, such as getting a beer at a bar when you check in. Then, there is a loyalty deal on the phone, taking the place of that dog-eared card you always lose.

And there is the “friend deal.” This is not friends with benefits, sadly.

It means if you check in and bring a lot of folks, one eats free–which sounds just a little naughty.

Also, there is one deal type related to charity.

For the Gap, for example, you get a free jeans if you are among the first 10,000 to check in at a Gap store. There are 500 million Facebook users, so you do the math.

Essentially, it is about getting stuff if you check in, including experiences.

So, just like little white mice in Facebook’s lab, we push the button, we get the cheese. Sigh.

But I wonder if I check in right now, I can be transported to the Giants parade via a time machine. Now that might be something worth handing over my privacy to Facebook.

“The big takeaway for today is that there is obviously a lot of change in the social space,” says Facebook CEO and Co-founder Mark Zuckerberg. “You can rethink any product area and make it be social.”

Indeed, you can. And Facebook obviously is going to be plowing on through a lot of them in order to solidify its stranglehold on the consumer.

11:23 am: Q&A!

The first question is on privacy and third-party developers giving up your location.

Yes, that!

Zuckerberg makes assurances that the current privacy steps now in place are working just fine and also users need to consent.

“The place information about people is not public,” he says.

There is question from Ben Parr of Mashable, about whether there is an iPad app for Facebook coming.

“It’s not mobile…it is a computer,” declares Zuckerberg, dismissing the very good question.

“I think Apple would disagree with you,” countered Parr, correctly.

“Well, sorry,” said Zuckerberg with more than a little bit of snark.

For a second, he sounds just like the guy from the Facebook movie.

But Zuckerberg quickly declares his love of Apple products and apologizes, although he should not have as it was a funny exchange.

A question about single sign-on. Zuckerberg notes that it has been tried, but the experience was bad.

“What we think is going to happen now is that it is so easy when it works, it is a whole different experience,” he said, comparing it to the way YouTube made video uploading on the Web easier.

Zuckerberg’s goal is that all apps become social, which is also a virtuous circle for Facebook, of course.

A question about the deals offer. It seems for Zuckerberg that Facebook is not getting a cut from retailers right now, as Groupon does.

Ruh-roh, Andrew Mason!

Zuckerberg then notes that the Places offering is going well, without giving a lot of specifics.

At the end, PR maven Brandee Barker wraps it up by saying what I have been thinking this entire time:

“Go Giants!”

In short, while most technology isolates us behind computer screens and virtual worlds, location-based applications help us discover more, experience more and connect with others in the real world. It’s technology to save us from our technology. But in all the recent conversations about location-based services, there has been very little discussion so far about what we at Loopt think is the most interesting future of these services.

I call the set of all places that you go (and information about when you go, for how long, who with, etc.) the Life Graph. This data set is unique to everyone, and it’s incredibly rich. For example, it’d be easy to learn about me from the neighborhood I live in, the block that I work on, the kinds of restaurants I eat lunch at, and where I usually spend my Saturday afternoons.

The Life Graph creates a powerful model of who you are. As a publisher, when deciding what places and events to present you with, or what nearby users might be interesting for you to meet, we are far better off looking at your Life Graph data than at traditional demographic data. Instead of guessing what you should like based on your age and gender, we can make an incredibly informed guess about what you will like based on what you have liked in the past, and also based on what people you know like.

I hear great new ideas about what to do with this data all the time. For example, a service could learn the time and route you drive to work everyday and alert you if there’s traffic on your normal routes. Or, a service could suggest restaurants rated highly by people who also liked restaurants you like. Or, a service could tell you about “specials” being offered at locations you visit and enjoy frequently. More than just broadcasting your location and helping find nearby friends, these apps can deliver personal and contextually-relevant information that can help us discover and experience more of what’s around us. Certainly we think this kind of service will play into the future of mobile advertising.

Privacy is obviously a huge concern when dealing with an individual’s location history. We know that it’s critical to give users complete control over what data is stored and how it’s used, and to minimize retention of unnecessary data. (See a more in-depth account of Loopt’s privacy policies here.

Our mobile devices are always with us, and they have a lot of sensors. We’re quickly reaching a time where everyone will create massive amounts of data about who they are and what they like just by walking through their worlds. I’m very excited about how this will revolutionize the personalization of mobile services.

Sam Altman is the co-founder and CEO of Loopt. Sam founded Loopt to improve the way friends communicate. His primary responsibility within Loopt is driving the product vision, assembling a passionate team to realize that vision and making sure people have fun while they’re at it.
Sam studied computer science at Stanford University, focusing on security and machine learning. He also helped build an autonomous helicopter navigation system while in school.

Facebook is set to add location-sharing to its popular site next month. Meanwhile, services such as Foursquare and Loopt have been adding users, and a plethora of smaller tools have sprung up as well. But a study by researchers at Carnegie Mellon University showed that the majority of the more than 80 location services it surveyed either don’t have privacy policies or collect and save all data for an indefinite amount of time.

The Carnegie Mellon study found that people value the ability to find others in an emergency and get information based on their location. Lorrie Cranor, an associate professor of computer science and one of the authors of the study, said people also value location-based advertising in some circumstances–a good thing for the companies that are building a business around precisely that. But she said many people just don’t realize what a database of all the locations they’ve been at over time could mean.

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While these location-sharing services have some interesting possibilities, they also raise some disturbing implications for privacy — or maybe it just seems that way if, like me, you’re over 35 years old. Lately I’ve been testing a cellphone location-sharing service that I found simple, useful and non-creepy enough that I can imagine people thirtysomething and older using it.

Send a ‘Glympse’ to share your location

The free service is called Glympse, from a company of the same name that has designed it to share your location with friends and colleagues in small increments of time — glimpses, as the name implies, of your whereabouts. Glympse just released a test version of the service as an application for the G1, a phone offered by T-Mobile that runs Google’s (GOOG) Android operating system.

The company will release versions of Glympse for BlackBerry, Windows Mobile, iPhone and Nokia (NOK) phones in the coming weeks. Users can download the Glympse software onto G1 phones through Android Market, the online clearinghouse for applications for Android phones.

I used Glympse on an iPhone and a G1 and, for comparison, tried out a couple of other location-sharing applications, Google Latitude and Loopt. When you start the Glympse application, it identifies where you are on a map using a combination of location technologies in cellphones, including GPS satellites, Wi-Fi hot spots and phone towers.

Your location isn’t shared with others until you “send a Glympse” to someone. The software allowed me to send a Glympse with my location for selected chunks of time lasting anywhere from zero minutes to four hours. Picking zero minutes shared only my location at the moment of sending, while selecting four hours meant the recipients of my Glympse could track me for that period of time, wherever I went.

The sender of a Glympse can address it by entering a recipient’s email address, or a mobile-phone number for a text message. Recipients get a message with a link to a map on a Web page. A nice thing about the service is that it doesn’t require recipients to have the Glympse software, though the experience is richer when they do.

Sending a Glympse can be helpful anytime a friend, family member or colleague is expecting you. You can send a Glympse that lets a friend know you’re stuck in heavy traffic (although it’s wise to do that before you’re on the road to stay safe and, in some states, to avoid breaking the law). Parents can insist that teens send a Glympse when they go out for the evening.

Bryan Trussel, the CEO of Glympse, sent me several Glympses with short messages like “late lunch meeting” and “headed home” to explain where he was going. On the G1, I could see an icon representing Mr. Trussel moving around a map as he drove through the streets of Redmond, Wash., including his speed. I was also able to see traffic conditions, which would have been helpful if he had been running late. Glympse gave me a similar view of his location through a Web browser running on my PC. On the iPhone, the experience was more static, forcing me to reload a Web page to get a fresh view of Mr. Trussel’s whereabouts. Glympse says it will fix this so users of the iPhone can watch someone’s location in real time.

I encountered a bug with the service when I sent a couple Glympses to my own cellphone and that of a colleague — both BlackBerrys and neither of which had Glympse software. Both Glympses linked to high-level maps suggesting I was somewhere in North America, which wasn’t very helpful, even if it was technically accurate. The company couldn’t figure out what the problem was, and it eventually stopped happening for me too.

Once a Glympse expires, the service no longer tracks the sender’s location. It will show the sender’s last known location for 48 hours after the Glympse expires. Glympse may some day use your location information to target advertising to you, but the company isn’t doing that for now.

I’m far more comfortable with this form of finite location-sharing than the approach used by other services. Google Latitude lets you share your location to only a list of friends. It gives you the option of turning location sharing off or, through a “city level” option, it reveals only your general whereabouts. Loopt similarly allows you to set options to show, or hide your location from all or some online friends. A feature called Loopt Mix lists strangers you can send messages to in your general vicinity — many of whom seemed to be looking for romantic partners in my area.

Despite these controls, I easily forgot I was sharing my location with these two services. This might be fine for someone who enjoys being tracked down by friends during a night out on the town or is diligent about changing privacy settings when they want to go stealth.

I’m too lazy to manage my privacy so closely though. I don’t mind giving friends a look at my location, but only if I know the invitation isn’t open-ended.

• Email nick.wingfield@wsj.com.

All four of us have been using an application that, once downloaded onto a mobile device, uses location-based technology to track its users’ movements. The app then displays the user’s location on a map for friends to see, so they can know where the person is at all times.

We used Google Latitude, a new feature in the search giant’s Google Maps mobile application as of today. People can get this if they upgrade their current version of Google Maps or install Maps for the first time. It works on Google’s G1, most color BlackBerrys, most Windows Mobile devices and some other smart phones. Google says it will soon work on the iPhone, iPod touch and Sony Ericsson phones.

Google (GOOG) is arriving late to the party where location-based apps like Loopt (Loopt.com) from Loopt Inc. and Where (where.com) from uLocate Communications are already following people on a variety of mobile devices ranging from basic cellphones to iPhones. These apps rely on GPS satellites, Wi-Fi or cellular towers to locate you and your friends, and then use this data to encourage people to find nearby attractions, local information or social networks.

Latitude is an opt-in-only feature, meaning no one can see your location — or vice versa — without permission. It uses either GPS satellites or cell-tower and Wi-Fi location technology depending on your mobile device’s specifications and what’s most available in certain spots. My trusted testers and I used Google Latitude on three different kinds of BlackBerrys: the Pearl 8130, Curve 8320 and two Curve 8900s. Of these, only the 8900s made use of GPS.

Latitude, a feature in Google Maps, shares someone’s location, status and photo with friends. Location data can update every several minutes when a user is moving.

Along with their locations, friends can share other information on Latitude by updating a status line or changing their picture, which appears as a tiny representative icon on a map. Changes to one’s status or picture will be reflected in Google Talk, Google’s instant-messaging tool, but this doesn’t integrate with other status-related social-networking programs like Facebook or Twitter, and thus may saddle people with another status entry to update.

It’s easy to find fault in Latitude since it often spots people inaccurately, including showing my sister in Boston’s Charles River, rather than in a neighborhood along the river. It’s worth noting that tracking technology in general, including GPS, can be inaccurate. But even with these inaccuracies, my friends and I liked finding one another on our respective maps and used this geographic information to send location-specific messages to each other: I joked with my boyfriend about not leaving his house on time for a dinner and commended my sister on getting up early for church on Sunday.

Usability issues aside, location-based services like Latitude can be just plain creepy, especially when a Big Brother like Google is tracking your whereabouts. So Google incorporated easy-to-change privacy settings so that locations can be automatically detected, manually entered or completely hidden from other people. Or people can sign out of Latitude altogether.

Likewise, users can adjust the level of geographic information they’re willing to share with each person. For example, I might want to share with my boyfriend my best available location information, like a specific spot on a street, and share only city-level location information with my boss.

The city-level information would be helpful for my parents, who often wish they had a better idea of when I’m traveling for work and where I’ll be. But my parents aren’t likely to download Google Latitude onto their mobile devices anytime soon. For them, a special Latitude widget in iGoogle — Google’s personalized home page feature on a PC — might be best. This widget is also useful for people who may have Latitude on a mobile device but are sitting at their desks and want to see where their friends are.

As expected, Latitude worked differently between me and the people who live in the same area, compared with how it worked between me and people who live hundreds of miles away, like my sister in Boston. For example, my boyfriend and I are more likely to use our respective locations to plan where we’ll meet for dinner, while my sister’s current location is just fun to see. Still, my sister and I know one another’s neighborhoods well enough to have an idea of where the other was, and we felt a little more plugged in with each other’s lives when we saw one another on our maps.

People who live in urban settings will likely use Latitude differently than those who live in the suburbs. One of my testers noted that it could be fun using Latitude to see where friends are out in a city on any given night. But because Latitude sometimes pegs people’s locations as a lot farther away than they are — one test spotted a friend 1.5 miles away from his real location — this might be tough data to go on.

After using Latitude for a while, I grew to recognize familiar location mistakes like home or work, and knew where my friends actually were. But it’s unfortunate that locations aren’t more accurately marked.

Latitude returned the most precise location results when determining where the two GPS-using BlackBerry Curve 8900s were at any given time, though these spots still weren’t perfect. If a mobile device doesn’t have GPS or if GPS simply isn’t available in the area, cellular towers and Wi-Fi will help a determine location. These alternate methods use less battery than GPS, so they will work instead of GPS when Google Maps isn’t running in the foreground of a device.

Latitude users can opt to allow their location to automatically update every several minutes while they’re moving. A Friends List that appears with the map lists people in order of who is moving starting with who moved most recently. Users can send text messages or call friends directly from this list, or find nearby spots like bars or movie theaters by typing into a search box; restaurant information includes ratings and reviews. Directions to and from friends’ locations are also available, and you can plan your route via car, mass transit or walking.

Location-based services like Latitude are great for keeping tabs on friends and could even come in handy in other situations — such as when parents want to know where their kids are or when elderly relatives want to let someone always know their whereabouts. But I wouldn’t want to depend on them in an emergency.

• Google Latitude Web Site

Edited By Walter S. Mossberg

• Email us at mossbergsolution@wsj.com. Find this and other columns and videos online free at the All Things Digital Web site: http://walt.allthingsd.com

]]> http://allthingsd.com/20090203/tracking-friends-the-google-way/feed/ 0 http://allthingsd.com/20080609/wwdc/ http://allthingsd.com/20080609/wwdc/#comments Mon, 09 Jun 2008 16:59:39 +0000 John Paczkowski http://digitaldaily.allthingsd.com/20080609/wwdc/ Apple’s much lauded iPhone captured 28 percent of the smart-phone market in the States by the fourth quarter of 2007–just six months into its launch. Today it holds something less than that–about 19.2 percent. But to look at the headlines, you’d think it controlled the market in its entirety. A quick search on Google returns 19,035 results for “iPhone”– from Jun. 2, 2008 to today. Why? Because in a few hours, Apple CEO Steve Jobs will address the company’s Worldwide Developers Conference in San Francisco, at which he is expected to unveil the next version of the company’s iPhone.

And for Apple’s (AAPL) sake, I hope he does. Because with expectations running this high, I’d hate to see what happens if he doesn’t. Although the new Apple Store housed in a life-size replica of the Golden Gate Bridge pictured in the invite would certainly take some of the heat off …

Anyway, I’ll be live-blogging from inside Moscone West in San Francisco starting at 10 a.m. PDT. Here’s something to read while you wait …

• From Moscone West: This is crazy. They just opened a single door to let cameras in and the media rushed the gate. Its like that 1979 Who concert in Cincinnati.



• The hall in Moscone West is filling quickly to the sounds of Jerry Lee Lewis. From the looks of it media and developers are here in equal numbers.
• Jobs takes the stage. I’m sitting about 20 rows back, but even I can see he’s looking pretty thin from here. He gets right into it, pulls up a slide of a stool and describes Apple as a three-legged company. Macs, music and the iPhone.
• Jobs will spend the morning talking about the iPhone. This afternoon Apple will discuss OS X “Snow Leopard.”
• Talking about iPhone SDK: In the past 96 days, 25,000 people have applied to Apple’s paid developer program. It’s had 250,000 downloads of the iPhone 2.0 software SDK.
• Three parts to iPhone 2.0: enterprise, SDK, “new features.”
• Apple has built exchange support into iPhone 2.0: push email, push contacts, push calendar, auto-discovery, global address lookup, remote wipe. Also supports Cisco VPN security.
• Everything enterprise has told us they’ve wanted in the iPhone, we’ve built into it right out of the box, he says.
• 35% of Fortune 500 companies have participated in iPhone 2.0 beta: top five banks, securities firms, 8 of 10 top pharma companies, 6 of 7 leading airlines. Lots of support from higher-ed market as well.
• Cutting to video now: Execs from Disney (DIS), Genentech, U.S. Army discussing iPhone 2.0 beta: all of them talking about the extraordinary demand for the iPhone among their employees.
• “iPhone 2.0 is extraordinarily well-integrated with Microsoft (MSFT) Exchange.”
• Video goes on: Talking about security now. Army rep talking about how important remote wipe is. Disney exec describes iPhone as “an enterprise-level device that packs the power of a laptop into a device the size of a phone.” Video ends.
• Moving on to iPhone SDK. Jobs welcomes Scott Forstall to the stage to discuss the SDK. “We’re opening up the same developer tools we use internally,” he says. “Developers will create applications in exactly the same way we do.”
• Core OS: Core operating system of iPhone uses the same elements as OS X. Offers a quick overview of Cocoa Touch, Xcode, Interface Builder, Tethered Debugging, Instruments and other developer tools, before moving on to a quick demo of Interface Builder.
• Launches Xcode and creates a new project in Xcode. App will use built-in address APIs as well as core location APIs to locate contacts within a 10-mile radius of the iPhone.
• He opens Interface Builder and drags and drops some buttons and fields onto an iPhone test screen on his desktop.
• The UI finished, he opens the iPhone simulator to test it out. It works.
• He links the UI features up to the code he’s written and bang, it’s linked up and ready to go. That’s it.
• Forstall says developer response to the iPhone SDK has been enormously positive. He refers to a number of developer quotes that really lionize the platform: “It blows away anything we’ve seen from RIM” says one.
• Forstall invites a Sega rep up to the stage to demo some of their work for the iPhone. Sega’s Ethan Einhorn offers a bit of background on their Super Monkey Ball project. He notes that the company was able to demo an early version of the game after just a few weeks of work at the iPhone SDK launch announcement. Now, after a few more months of work, they’ve managed to create a full-featured version of the game.
• Super Monkey Ball will be available at the launch of the App Store for $9.99.
• Up next: eBay’s Ken Sun. The iPhone has become the No. 1 mobile device for accessing eBay, Sun says.
• Six weeks ago, eBay began developing a new interface for the iPhone and was able to quickly pull one together.
• The application supports auction watching and bidding. Bids placed on an iPhone are instantly registered in eBay’s system. The eBay app will be available for free when the App Store launches.
• Loopt’s Sam Altman takes the stage to talk about the company’s location-based social-networking app: “We make serendipity happen.” Pffft. He pulls up the app and uses it to locate a friend and a list of the thing’s she’s done today. He notes that the friend is close by at a cafe and sends her a quick message asking if she’s available for lunch.
• Next up: TypePad and its mobile blogging application. Michael Sippey takes the stage and after talking up TypePad as a blogging platform, he moves on to the company’s new iPhone app.
• Demo will focus on photoblogging. He browses the photos on his iPhone, selects a picture, crops it, adds it to a blog post, publishes it to his blog, taps view and Safari launches and displays his new post. Very fast, very slick. Oddly, no mention of a cut-and-paste feature.
• This app will also be available at the launch of the App Store for free.
• Associated Press follows TypePad. AP’s Benjamin Mosse describes AP’s Mobile News Network, which uses the device’s location API to provide location-based local news, photos and video.
• The app also supports citizen journalism and permits AP readers to send the news agency their own photos and news reports. This app will also be available for free at the launch of the App Store.
• Next up: Brian Greenstone from Pangea software. The company has ported two of its games from OS X to the iPhone.
• The first is Enigmo. The second is Cromag Rally–a 3D caveman racing game. The graphics in both games look great. Greenstone notes that in this particular game, the iPhone itself is the controller–in this case, the steering wheel.
• Greenstone really talking up the SDK, says porting the game was almost a no-brainer.
• Forstall welcomes Moo-Cow-Music’s Mark Terry to the stage to demo Band. It’s a collection of virtual instruments that allows users to create music on the iPhone. He pulls up a keyboard and plays the first few bars of John Lennon’s “Imagine.”
• He moves on to a drum kit, and then to a “blues interface” that includes all the instruments you need to play the blues. And now the bass; he plays a few bars of Pink Floyd’s “Money.” He notes that tracks can be recorded and mixed together to create songs individually or collaboratively.
• Onstage now is Jeremy Schoenherr from MLB.com to demo an app developed exclusively for the iPhone. The app offers real-time updates of game info and also nearly real-time video highlights. Videos will reportedly be uploaded minutes after a play is made.
• Next: Modality, which will demo the first of two apps designed for the medical industry. S. Mark Williams takes the stage to talk about a learning application for med students. Looks like they’ve created an iPhone version of “Netter’s Anatomy.” All the graphics have been ported to the iPhone, and you can zoom in and out, and use touch to locate different areas of the body, the same way you use the Google maps application. Modality says that within weeks of the App Store launching, it will be offering this application as well as others for different education markets.
• Mark Cain from MIMvista onstage now. Looks like we’ve got a medical imaging application. Onscreen now is a CT scan and a PET scan overlaid on an iPhone screen. (My god, this is really cool.)
• The application relies on the iPhone’s pinch, slide, touch and drag to navigate images. You can also toggle to a planar view as well. Whoa–it supports movies as well. Cain stresses that this is a highly complex and computing-intensive application that’s been ported to the iPhone. And his company was able to do it with relative ease.
• Up now: Digital Legends to demo another game. They’ve developed Krull, a fantasy action game, on the iPhone. Accelerometer is used to move the character, to jump, swing weapons, etc. The graphics are very impressive.
• The person demoing notes that in some cases they’re better than those of handheld gaming platforms. The app will be available later this year. What we were just shown–which was damn impressive–was pulled together in just two weeks.
• Forstall back onstage. He’s talking about one feature that developers have requested that wasn’t included in the SDK: The ability to run applications in the background as well as the foreground.
• He pulls up a Windows Mobile task manager to demonstrate the wrong way to address that request. “This is nuts,” he says. Apple has come up with a far better solution: We’ve developed a push notification service.
• Apple will maintain a persistent IP connection to the iPhone through which third-party applications can push notifications to the device. These can be badges, text notifications and audio notifications. There is also a unified push notification service for all developers that preserves battery life, maintains performance and works over the air. This will be available in September, but Apple will begin seeding it soon.
• Jobs strolls back onstage to discuss some new features.
• The first: Contact Search. Your standard contact search.
• Second: Full iWork document support: pages, keynote. MS office support as well: Word, PowerPoint. (Cut-and-paste support?)
• Third: Bulk delete and move.
• Fourth: Save images from email.
• Fifth: A landscape view of the calculator.
• Sixth: Parental controls.
• Seventh: Languages: there are two forms for Japanese, two forms for Chinese (simplified and traditional) including one that allows you to draw the characters with your finger. “One of the great advantages of not having a bunch of plastic keys on your keyboard,” says Jobs.
• What about 8, 9 and 10? Cut-and-paste, chat and a better camera? No? Damn.
• “iPhone 2.0 raises us to a whole new level,” says Jobs. “We’ll release it in July. It will be free to all iPhone owners, and $9.95 for iPod Touch users.
• Moving on to the App Store. It will be on every iPhone, and it supports wireless downloads, automatic installs and automatic updates. Developers can set the price of their apps. Developers take 70%. No credit card or hosting fees. Apps will be DRM’d for FairPlay.
• If a developer chooses to offer their app for free, Apple won’t charge them anything. Apps under 10 MG can be downloaded over the air. Apps above that size can be downloaded over iTunes or via Wi-Fi.
• Apple has also developed an enterprise version of the apps store that will allow companies to distribute their custom applications only to their employees on their phones.
  There’s another distribution method as well: Ad Hoc. Developers can mail apps to up to 100 users.
• Now we’ve got something entirely new: It’s called MobileMe. Phil Schiller takes the stage to talk about it. What’s MobileMe? “It’s like Exchange for the rest of us.”
  (Haha.) He just slipped up and called active sync “active stink.”
• With MobileMe, iPhone users can have mail, calendar, etc. pushed to their phones. Information is stored in the cloud and then pushed to all a user’s Apple devices. Change a meeting on your phone, the update is pushed to MobileMe, which then pushes that update to your laptop and the machines of the people who are scheduled to attend it.
• All this is done over the air. MobileMe works directly with Apple apps. It also works with Outlook for PC users. Apple has also built a suite of Web-based applications. You’ll find them at me.com. The applications look pretty robust. More like those you’d see on the desktop than on the Web.
• Mail, contacts, calendar, photos–which can be sent directly to MobileMe from the phone–iDisk for storage.
• He’s demoing it now: supports drag and drop. Also supports real-time contact search with links to Google (GOOG) maps for directions.
• Calendar supports drag and drop as well. Want to reschedule a meeting? Drag it to another date and time.
• Moves on to iDisk, which has a new interface. All this is tightly integrated with the iPhone. He checks a push email on his phone, saves the sender as a contact. Now he checks his MobileMe account online. The email and new contact are already there.
• Now he creates a new calendar entry on his laptop. He check his phone and there it is. Now he leaves the iPhone view up on the screen behind him, walks back over to the laptop and adds another meeting to his calendar. A few seconds later, the iPhone screen updates with that new meeting. He demonstrates the same thing with a photo.
• MobileMe will be available for $99 a year, with 20 gigabytes of storage. It will be available in July. And yes, MobileMe does replace .mac. Mac users will be automatically upgraded.
• And what about that cut-and-paste support? No? Anyone? Bueller?
• Jobs back onstage. In a few weeks, it will be the iPhone’s first birthday, he says.
  He shows some photos of the crowds outside the Manhattan Apple store.
• Jobs: “This is the phone that has changed phones forever.” He says the iPhone has 90% customer satisfaction; 98% of iPhone users are mobile browsing; 94% are using email; 90% are text messaging; 80% are using 10 features or more. “You can’t even find 10 features on other phones,” he adds.
• Apple has sold 6 million phones so far, Jobs says. Now we need to address our next challenges:
• 1. 3G
• 2. enterprise support
• 3. Third party applications
• 4. more countries
• 5. more affordable.
• Jobs notes that everyone wants one, but 56% of consumers Apple surveyed said it was too expensive.
• iPhone 3G announced to roar of applause, camera flashes.
• iPhone 3g is thinner, full plastic back, solid metal buttons, but same display, camera, a flush headphone jack, dramatically improved audio. “Feels even better in your hand, if you can believe that,” Jobs says.
• How does the iPhone 3G tackle the challenges I just mentioned?
• Video of EDGE vs. 3G pageload on Safari: 3G takes 21 seconds, EDGE still grinding away. Web site is National Geographic, very image heavy. EDGE still grinding; audience begins laughing. EDGE takes 59 seconds; 3G is 2.8 times faster than EDGE.
• Jobs notes that 3G speeds approach those of Wi-Fi. Apple compared the iPhone 3G to two other state-of-the-art 3g phones, and the iPhone is 36% faster than Nokia N95 and Treo 750.
• Video of same comparison with an email attachment: 3G downloads it in five seconds; EDGE takes 18 seconds. 3G is 3.6 times faster.
• Talking about battery life now: iPhone 3G has 300 hours standby. 2G talk time: 10 hours; 3G talk time: five hours–that’s an industry-leading metric.
• Five to six hours of browsing. Seven hours of video. Twenty-four hours of audio.
  One other thing that benefits from fast data is GPS, and we’ve built that into the iPhone 3G, Jobs notes
• Jobs talking about how location based services for the iPhone are about to explode. He’s demoing GPS tracking now. Jobs tracks a car driving down San Francisco’s Lombard Street.
• Now, he circles back to enterprise support, third-party apps, and international distribution. Apple hoped to put the iPhone in 25 countries. World map appears on screen. Theme from “It’s a Small World” plays as countries in which the iPhone is distributed are quickly colored in. Half-hearted “Small World” sing-along fades after a few verses.
• Lots of applause for this: “We’ll be rolling out the iPhone 3G in 70 countries over the next few months.” The next time you’re in Malta and you need an iPhone, it’ll be there.
  Deals for all these countries are signed, sealed and delivered, according to Jobs.
• Moving on to price: iPhone 3G will sell for $199 for 8GB version. Huge applause.
  “With think at that price point it will be affordable for everyone,” Jobs says. The 16GB model will be $299 and will be available in black and white. Apple will start rolling the iPhone out in 22 of the largest countries on July 11.
• on to a new ad: “It’s finally here. The new phone that beats the iPhone–it’s the iPhone 3G.”
• The ad’s tagline: “Twice as fast. Half the price.” You can almost feel the early adopters in the audience wincing.
• Jobs after ad ends: “Isn’t that nice? Would you like to see it again?” Audience roars; Jobs plays the ad again. “Just like the first iPhone, this new iPhone is one of the most amazing products I’ve ever had the pleasure of being associated with.” Jobs asks iPhone team to stand. Lots of audience applause.
• Looks like that’s it. “Take advantage of the great sessions and go make some great products,” says Jobs. And the keynote ends. Sadly, there’s no “one more thing” moment today — no video-chat support, no chat support, no cut-and-paste.
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