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iPhone Perhaps Not a Failure in Japan, After All?

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Image: Nobuyuki Hayashi

The perception of iPhone as a “failure” in Japan is largely the result of what people read in newspapers, according to Nobuyki Hayashi, the Japanese journalist who was cited as a source in the Wired article we posted on late last night, and who put up a lengthy post of his own Friday to clarify the situation.

“The majority of Japanese … haven’t even touched one,” Hayashi wrote, adding, “So as soon as I give lecture, show it to them and let them play with it, they change their mind and become a fan of iPhone.”

Much of the chatter about the issue in the iPhone blogosphere Friday stemmed from Wired writer Brian X. Chen’s headline, which stated unequivocally that Japanese “hate” the iPhone, but as Hayashi points out in his post, Chen relied on quotes from a conversation Hayashi had with writer Lisa Katayama back in late 2007 to make his case.

Obviously, much has changed in the iPhone ecosystem, a well as in the US and Japanese economies since then.

The reality is likely more that the iPhone has been a relative disappointment in Japan. Many believe the device could do much better in Japan if Apple gave SoftBank more control in how they market / advertise the device, and if Apple would enable feature sets dear to the Japanese consumer, such as a built-in TV tuner and the ability to use it as a mobile payment system.

For a detailed look at Hayashi’s position on the iPhone in Japan, see his blog post.

Apple Goes with New Accountants

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Apple tapped Ernst&Young Friday to be the company’s independent accounting firm, severing ties with KPMG, which had audited the company’s books since fiscal 1997.

In a filing with the U.S. Securities and Exchange Commission, Apple said there were no disagreements with KPMG “on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure” during the past two fiscal years.

The move, according to an Apple spokesperson quoted for a Reuters article, was a result of a recently adopted board “policy to review the appointment of its independent auditor every five years.”

Apple said the decision to change auditors was made after a competitive process, in which several firms including KPMG were invited to participate.

The regulatory filing said KPMG’s audit reports on Apple’s fiscal 2007 and 2008 financial statements contained no adverse opinions.

Via CNN

Apple Balks at Repairing MacBook Air Hinges Under Warranty

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Apple is apparently refusing to cover the cost of repairs to some MacBook Air notebooks, even though the devices are under warranty, according to a report at Engadget.

Some MacBook Air owners who embraced the device in its original iteration (Rev.A) have found that over time, with normal use, the hinge fitting the screen to the body of the laptop becomes irreparably loose, sometimes even catching and cracking.

Discussion about the problem first hit the Apple Support fourm back in Feb. 2008 and appears to be well documented, though as an official matter Apple says it is not a “known” issue.

The Engadget report relates a case in which “Apple did the repair for free, but only after we escalated the issue to a manager, who let us know how very nice of them that was.” Apple classifies the damage as “accidental,” and thus not covered under the normal warranty. The hinge repair costs around $800.

Let us know in comments below how widespread this problem might be among Cult readers and whether you think you’d have what it takes to get an Apple Repair manager to cover repairs to your broken MacBook Air screen.

Apple Shareholders Re-Elect Board, Sing to Steve at Annual Meeting (UPDATED)

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Steve Jobs missed leading an Apple shareholders’ meeting on Wednesday for the first time since his return to the company in 1997, but the founder and visionary CEO remains “remains deeply involved in strategic decisions,” according to director Art Levinson, who spoke to reporters at the company’s headquarters in Cupertino, California after the meeting.

Despite his absence from the meeting, shareholders sang Happy Birthday to Jobs, who turned 54 yesterday. Reporters were barred from taking laptops, iPhones or other communication devices into the meeting, but a few attendees were apparently able to sneak in wireless handhelds to post notes during the meeting, according to a report at Fortune.

Details on shareholder actions at the meeting after the jump.

Sometimes a Picture is Just a Picture – Don’t Look for Live Search on Snow Leopard

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Microsoft used an image of an ambling snow leopard licking its chops for the backdrop to its Live Search homepage on Thursday, prompting a few in the business and technology press to speculate why.

Among them, Ina Fried at c|net is likely furthest from the mark, with her suggestion Microsoft could have been showing a player’s tell that Live Search will be the default search engine in Safari’s tool bar when the next version of OS X launches.

Fried suggests that because Microsoft has money to spend and because it might be willing to do so in order to get the market share boost for Live Search that such a deal would bring, well, she admits the idea is a “crazy” one, but she put it out there any way.

Why it won’t happen: Apple doesn’t need the money and has almost never made it a practice to co-brand its products with services that suck.

Apple Calls Jailbreaking iPhones a Crime

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Apple has filed a response to an Electronic Frontier Foundation request that the US Copyright Office exempt from the provisions of the Digital Millennium Copyright Act applications for the iPhone and iPod Touch which violate certain term of Apple’s SDK, describing the very act of “jailbreaking” an iPhone a crime.

The EFF wants the Copyright Office to officially exempt “computer programs that enable wireless telephone handsets to execute lawfully obtained software applications, where circumvention is accomplished for the sole purpose of enabling interoperability of such applications with computer programs on the telephone handset.”

The non-profit consumer advocacy organization believes Apple’s efforts to control the software that runs on iPhone is “corporate paternalism” and described them as comparable to an automaker welding shut the hood of its cars to only allow servicing to be done by authorized dealers.

Apple’s extensive response to EFF’s request (available as a PDF) cites, among other things, danger to the device from unauthorized software and increased support costs that result from problems caused by jailbreaking the phone, and asserts that jailbreaking fails all four “nonexclusive statutory fair use factors prescribed in § 107 of the copyright statute,” essentially calling jailbreaking a crime.

The Copyright Office is not expected to rule on EFF’s request until October.

If you’re interested in a detailed rehash of the legal brickbats flying between Apple and EFF over the matter, AppleInsider has a very good discussion of the arguments raised by both sides.

AppStore Success – Has the Easy Money Been Made?

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Two stories in the iPhone developers ecosystem Thursday illustrate the challenges of navigating the path to fame and fortune on the back of a cleverly written app and its AppStore sales.

First comes news from AppCubby, whose experiment with 99¢ pricing we reported on a few weeks ago, saying, indeed, selling apps for 99¢ and depending on voluntary donations to cover the gap between success and failure is, for AppCubby anyhow, unsustainable.

Blogger/developer Erica Sadun relates how Apple’s own Department of AppStore Security is quashing some innovative developer marketing efforts and refusing to approve any app that advertises a contest or promises prizes or awards in the app itself or in its AppStore description.

Sadun uses the example of iFartMobile’s currently selling app, which advertises a $5000 prize to one lucky user for submitting a winning video of the app in action, saying Apple’s lawyers want no part of being named in potential suits against developers who may fail to deliver on contest prizes advertised through the AppStore. Developers are now being told no app using contest or sweepstakes marketing will be approved.

With the news this week there are now more than 20,000 apps on iTunes, it’s clear a lot of people out there are hoping to strike it rich panning for AppStore gold.

One can hardly blame Apple for trying to police the panhandlers, though, as Sadun points out, it can be frustrating for developers when the policing lacks transparency.

Apple Ads – Fishing for a New Angle

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httpvh://www.youtube.com/watch?v=uOdhudBl3Vc&eurl=https://macenstein.com/default/archives/2710&feature=player_embedded

The ever-amusing Dr. Macenstein has unearthed a pitch for a new Apple advertising campaign meant to counter the growing prevalence of lawsuits charging the company with misleading consumers.

The new angle would show real-world Mac users and how they use their Macs in the real world. Simple is brilliant, eh?

In this test pilot, author/evolutionist Richard Dawkins uses his PowerBook to read hate mail.

Who would you use out there, dear reader?

Is Justin Long over?

Report: Apple May Offer Streaming Video in iTunes

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Apple may be putting the finishing touches on a new streaming video service that would allow iTunes users to access purchased video content without the need to download and store it on a local machine, according to a report Wednesday at AppleInsider.

iTunes Replay would let users stream content such as movies and TV shows directly from Apple-owned servers in a manner similar to Amazon’s Video on Demand (formerly known as UnBox) and the Instant Watch service from Netflix, and may also improve the experience of the company’s Apple TV set top box, allowing users to stream purchased media directly from Apple’s servers without syncing or copying files between Apple TV and a computer running iTunes.

The report is unclear whether Apple intends to move toward a “streaming only” distribution model for the typically large files created by video content, or if iTunes Replay would merely represent an option for consumers with fewer concerns about retaining physical control of their purchased media content (and less storage in which to keep it).

To the extent that media distributors such as Apple, Amazon and Netflix embrace the streaming distribution model, consumers may find relief from the need to maintain ever greater storage capacity for growing media libraries. Though the trade-off – and guaranteed consumer dissatisfaction – will arise over bandwidth limitations that already make even a YouTube-watching experience sub-optimal at peak demand times in some places in the US.

24″ Cinema Displays Get a Notable No Confidence Vote

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Apple’s new 24″ LED Cinema Display suffers the fatal flaw of “ridiculous, terrible glare,” according to Jason Snell, editor of Macworld, who informed his Twitter followers Monday he’s putting his monitor back in the box and returning it to Macworld Labs.

Snell has spent his professional career as a writer covering Apple and, despite the presumed objectivity of his position as the editor of one of the larger, more recognizable mainstream media brands associated with the Cupertino computer maker, likely wouldn’t give up on such a major piece of Apple hardware unless he felt it was poorly executed.

Snell, of course enjoys a luxury many consumers do not, in that he can give his display back to the magazine’s lab and not have to worry about its cost or the space it may take up sitting unused in a corner or on a shelf. Average folk who’ve bought Apple’s new display and discovered after using it for a time that the glare is unbearable have far fewer options for doing anything about it.

What about you, dear reader – how do you feel about Apple’s embrace of the glossy screen on its flagship display? Is it worse in the wild than the glossy notebooks’ display? Would you send it back to “the Lab” if you could?

Steve Wozniak to Compete on Dancing With the Stars

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Image courtesy Bearotic (probably NSFW)

In case you were wondering, Steve Wozniak (pictured is now confirmed to be a competitor on the next season of “Dancing with the Stars,” alongside Steve-O, Jewel, and many other formerly famous people. Because he couldn’t just start working for a new company, which was announced last week. He needed to make a series of embarrassing appearances on TV.

Edit: No offense intended in link; was more looking out for people on the internet who haven’t figured out what the suffix “rotic” means at this point. Have revised to reflect.

Via Zap2It

Report: Apple is Growing Like a Start-Up

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Even after 25 years of Mac, Apple is growing like a high-tech start-up, according to Forbes magazine.

An upcoming issue of the venerable business and money magazine places Apple at #14 on its annual list of the 25 fastest growing tech companies of the past year, which is quite a feat for a company as large as the Cupterino computer maker.

To make the list, companies must have latest 12-month revenues of $25 million or more, annualized sales gains of at least 10% over the past five years and a profit over the past 12 months. In addition, a company must have a long-term consensus profit-growth forecast of at least 10%, annualized.

Surprizingly, this is the first time Apple has made the list since Forbes began publishing it in 2003, but even more remarkably, many of the other companies on it are tiny in comparison to the House that Jobs built.

With revenues of $33 billion per year, Apple is 60 times bigger than No. 1 on the list, biotech tool-maker Illumina (ILMN), and nearly 500 times bigger than No. 5, semiconductor designer Techwell. Apple has grown at an annualized rate of 40% per year over the past five years.

The only other company of Apple’s size on the list – Google, with revenues nearing $22 billion and growing at the rate of 72% a year, good enough for the #2 spot.

See the full list here.

Via Fortune

How I Got a Vintage Mac

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Independent Mac repair shops all over the world are rejoicing this week, after Apple’s announcment the company will phase out repair support for certain G4 machines, xserve products and other “vintage” and “obsolete” gear.

After March 17th, Apple will no longer provide service parts or documentation for the products listed after the jump, and the items will not be accepted as Mail-In Repairs to AppleCare Repair Centers.

It’s mighty kind of Apple to support the Apple repair ecosystem this way, and yet gives incentive to the consumer to buy new gear at the same time.

Sheer brilliance.

Via AppleInsider, via MacMerc

Cult of Mac on the BBC

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The BBC’s coverage of the Mac’s 25th has in some cases left something to be desired, the nadir being a bizarre video showing a Microsoft employee battling with an original Mac and comparing it against her Windows laptop. Ex-Macworld UK head honcho Simon Jary rightly pulled said video apart on his PC Advisor blog, although he didn’t note how, amusingly, the Mac boots much faster than the PC, despite MSN tech editor Jane Douglas cunningly refraining from giving the Mac its system disk until the PC’s been whirring away for a good few seconds.

Presumably wanting to avoid the same level of oddness, BBC Radio Five Live’s Pods and Blogs scoured the internet, looking for a Mac expert to chat to. Failing that, they ended up with me (Oho! You self-deprecating Brit, you!–Ed.), and I spent a happy 20 minutes talking to the extremely personable Jamillah Knowles about all things Mac.

As is always the case, the interview itself was knifed somewhat (due to it being nearly as long as the entire podcast was supposed to be), but there’s still a reasonable chunk left. Importantly, the Mac doesn’t come off looking too bad, although I do wonder what Jamillah’s co-presenter is going on about regarding how rubbish Macs used to be for getting online. (I’ve never had such a problem.)

Anyway, the podcast is at https://www.bbc.co.uk/radio/podcasts/pods/, and the Mac bit’s at the 14-minute mark.

New iPhone Ads Are Third Party App-Tacular

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Apple’s advertising for the iPhone is changing in interesting ways. When the product was brand new, all of the attention was on the interface, just introducing people to the idea of multitouch. Now, the focus has shifted to what you can do with an iPhone that you either can’t do or is too much harder to do on any other phone. The one above, “Fix,” is all about the little everyday problems the iPhone can solve, like finding a taxi, calculating your tip, or checking how level a shelf is. All of the featured applications (Rocket Taxi, Tipulator and Multilevel) are third-party, and each has a nice UI and a cool hook into signature iPhone 3G features, like GPS or the accelerometer.

Another new ad fits the same pattern, this one entitled “Read,” which goes into the many things you could read on the iPhone, including restaurant reviews (Yelp), an MRI (!) (OsiriX), or, well, a book (Classics). I’ve embedded it after the jump.

It’s a really smart way for Apple to make the App Store its own…killer app. How long until Apple makes the “Fart” commercial?

Via iPhone Savior

MacHEADS – The Movie Hits Amazon VOD

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MacHEADS – The Movie, the recently-released documentary on the interesting, outspoken community of people who believe Mac is the Holy Grail of personal computing, went up on Amazon VOD Monday, where you can “rent” the film for a week for $2.99 or buy it outright for $9.99.

MacHEADS debuted at Macworld Expo 2009 with over 1000 people attending the premiere. In an interview for BBC director Kobi Shely added, “The movie explores everything from the early days to the current days. Central to the success of the Mac has been the community that has supported Apple through the good times and the bad. That included the years when the company was written off as having lost its way and the ink on one of its many obituaries was all but dry.”

The film also features footage and commentary from multiple Mac evangelists, including Apple Chief Evangelist and savior Guy Kawasaki; the first official employee of Apple inc., Daniel Kottke; publisher of the first Apple newsletter Adam Engst; Chicago Sun-Times tech columnist Andy Ihantko; and a special guest appearance by Apple co-founder Steve Wozniak.

MacHEADS is due to be available on the iTunes store next week.

WTF Fan Gesture of the Week – The Apple Car

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Apple fans are famous for making outlandish gestures of their appreciation for the little computer company Steve and Woz built.

There’s the iconic Apple logo shaved head that graces our esteemed masthead, of course.

There’s was the ill-advised henna tattoo episode. And, well, there’s the Apple Tattoo Flickr Pool.

But this guy with the stickers and the car, well, I’m speechless, really.

Via Art Car Central

Inside Jonny Ive’s Design Studio

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Documentary film maker Gary Hustwit recently got to interview top Apple designer Jonny Ive for Objectified, a movie he’s making about industrial design.

The interview took place inside Ive’s ultra-secretive design studio near Apple’s campus, which is harder to get into than Fort Knox. This is the first interview I’ve ever heard of taking place inside the studio. Quite a coup for the film. I can’t wait to see it.

In the meantime, I’m dying to know what machines are in the background of this still. I knew the studio was filled with CNC mills and 3D fabricators. Does anyone know what machines are shown in this shot?

Will Apple and Palm End Up in Court Over Pre?

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Apple interim CEO Tim Cook spoke plainly during Wednesday’s earnings call about the company’s being “ready to suit up and go against anyone” who might try to gain a competitive advantage in the mobile device arena by “ripping off” the iPhone’s IP.

General consensus holds the Palm Pre poses the best competition for iPhone thus far, with some analysts drawing close connections between Apple and Palm around the Pre’s touch interface.

Mike Abramsky, an analyst at RBC Capital Markets put the question directly to Cook on Wednesday’s call, asking, “the Palm device particularly seems to almost directly emulate the kind of touch interfaces that [Apple] innovated…Is that to what you’re referring with regarding to ripping off IP?”

Cook declined to talk about any specific company and reiterated his and Apple’s position that “competition is good [and] makes us all better.” However, he also drew analysts on the call a clear picture of Apple’s belief that the “magic” of the iPhone has little to do with hardware and everything to do with software.”

“We’ve said since the beginning software is the key ingredient and we believe that we’re still years ahead on software,” Cook said, adding “we approach [this business] fundamentally different than people that are approaching it only from a hardware point of view.

It’s obviously way early in the game, and in the event Palm’s Pre never manages to gain significant acceptance in the marketplace, Apple is likely to keep its attention and resources focused on other things.

Should the Pre come on like gangbusters and should there be a lot of “hey, this thing works just like an iPhone” talk, it’s not too difficult to imagine Apple calling on its competitive advantage in cash and legal muscle to put the squeeze on a company that, not long ago, was being written off by many as headed for the dustbin of history.

Apple Shares on Sale Ahead of Quarterly Earnings Announcement

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Wall Street greeted Barack Obama’s inauguration as the 44th president of the US by shedding more than 5% of its total value Tuesday. Some might interpret the market action as a vote of no confidence in the new administration, others likely view the dip as an indication of challenges ahead for the US economy and still others would say the market for stocks acts as any market with excess inventory on hand – by putting things on sale.

The sale price for shares of Apple (AAPL) closed Tuesday at $78.20, the cheapest price the stock has seen in over two years, more than 60% off its all-time high of $200, set in December 2007. One of the most widely followed Apple analysts, Gene Munster of Piper Jaffray affirmed a price target of $235 for Apple stock as recently as December and today’s price action, coming just one trading session prior to the company’s quarterly earnings announcement, would seem to be Wall Street’s equivalent of a one-day red tag sale.

So what do you think? Is Wall Street giving potential Apple shareholders a gift, or is it trying to unload damaged goods while it still can? Can a guy like Munster, who follows in minute detail every financial move the company makes, who reports, often with uncanny precision, what Apple’s revenue and profit numbers will look like before they are announced to the public, can he seriously set a price target 200% above the stock’s current value?

What I know is that a year ago, after the market had knocked AAPL down from $200 to about $140, I wished I had some money to put into the stock, because I loved the company and its products, and I thought its prospects for the future were great. I know that six months ago, when the iPhone 3G came out and the AppStore launched with the stock trading at $175, I wished I had some money to put into the stock for the very same reasons.

Today, I know I’m kind of glad I don’t have any money to put into the stock because I still love the company and its products, and I still believe its prospects for the future are great, but it seems sometimes that’s not enough to make money in the stock market.

Comixology for iPhone: A Geek’s Best Friend

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I have a confession to make: despite my worldly exterior, I am a gigantic comics geek. I have a pull list, I can name everyone who has ever been a member of the Justice League, and I had a letter published in Green Arrow #101.

At this point in my life, I finally have the budget to buy a decent number of comics, but this has actually made things much more complex. After all, now I don’t have time to memorize which new books I want to read. Unless a preview makes a real impression on me, I forget I ever wanted to read it.

Thankfully, as it does for most of life’s problems, the iPhone has an answer. It’s called Comixology, and it’s a beautiful thing. Basically an app version (and companion) of Comixology.com, the program allows you to view lists of all the comics being released in a given week, preview artwork and story pages for many of them, and then “pull” interesting books so your local retailer will have everything cool waiting for you the next time you stop by.

It can also bring in podcasts, news, columns, and reviews. It’s pretty much one-stop nerd shopping.

I haven’t had time to get this synced to my actual comics pull list yet, but I’m planning to soon (my local comics impresario is an adviser to the project), and it’s awesome just as a memory-enhancing tool in the first place.

Plus, it doesn’t make farting noises. That alone sets it apart from the App Store pack.

HOWTO: Windows 7 on Unibody MacBook Takes All Afternoon

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Having read a few of the tutorials on how to install the new Windows 7 beta on a Mac with Boot Camp, I decided to take the plunge myself today on my still sparkling-new unibody MacBook 2.4 Ghz. (This post is actually being written in Firefox on Windows 7 — eww)

And what I learned is that you had really better be prepared to spend several hours to get it working properly. The link I’ve provided above is pretty handy, but it has some tricks to it that will not be immediately apparent without some trial and error. Read on to make the essential tweaks to the tutorial needed to make it work on MacBooks, not just MacBook Pros, read on!