Fast Company has written up the iPhonegate saga as a funny Choose Your Own Adventure. The flowchart is spot on and made me laugh out loud.
Here’s the whole thing: Choose Your Own Adventure: The Gizmodo iPhone Saga
Police have identified and interviewed the person who found Apple’s iPhone 4G at a bar, the San Jose Business Journal reports.
Also, it looks like Gray Powell, the engineer who lost the iPhone at the bar, and an Apple lawyer reported it as a theft. However, the District Attorney still hasn’t determined whether the case is a crime.
Investigators said they have identified and interviewed the person who took the phone from the Gourmet Haus Staudt on March 18 after it was left there by Apple engineer Gray Powell following a birthday celebration. Officials were unable to tell the Business Journal whether that person, whose name has not been released, was the same person who eventually sold the phone to tech Web site Gizmodo.com. […]
Wagstaffe said that an outside counsel for Apple, along with Apple engineer Powell, called the District Attorney’s office on Wednesday or Thursday of last week to report a theft had occurred and they wanted it investigated.
San Jose Business Journal: Apple asked for ‘lost’ iPhone criminal probe
Another piece of the iPhonegate puzzle has fallen into place. It’s been officially revealed for the first time that Apple reported it’s iPhone 4G protoype as “stolen,” not lost, according to the Wall Street Journal:
Stephen Wagstaffe, the chief deputy district attorney for San Mateo County, said Apple contacted authorities and “advised us there had been a theft,” which led to the search warrant and an investigation.
Until now, it’s been rumored that Apple considered the iPhone stolen — but hasn’t been officially confirmed. The distinction, of course, is crucial. If authorities conclude the iPhone was stolen, Gizmodo may be on the hook for buying stolen property. If the iPhone was lost, Gizmodo may be in the clear. However, under California law, a lost item that isn’t properly returned to its owner may also sometimes be considered stolen.
The authorities themselves don’t seem to have reached a conclusion yet. It is still unclear if they are investigating Gizmodo or the person who sold Gizmodo the phone. CNet spoke to the San Mateo District Attorney , reporting that it “has not been able to confirm whether the felony investigation is targeting Gizmodo staff, the iPhone seller, or someone else.”
If the authorities conclude that Gizmodo bought stolen property, staff may face up to a year in prison. But if police and the District Attorney are pursuing the seller, the raid on Gizmodo editor Jason Chen’s home may not have been warranted. Gizmodo may be protected under California shield laws, which prohibit judges from issuing search warrants against editorial publications, including online news sites. Techcrunch reports that the investigation has been “paused” while authorities decide whether Gizmodo is shielded or not.
Apple sits on the steering committee of the special police task force investigating iPhonegate, Yahoo News reports, raising the possibility that the company may have had a hand in the raid of Gizmodo editor Jason Chen’s house.
Friday’s police raid on Chen’s apartment was ordered by Rapid Enforcement Allied Computer Team (REACT) task force, which is commissioned to investigate high-tech crimes. Apple is a member of the task force’s steering committee.
Apple is one of the 25 companies that sit on REACT’s “steering committee.” Which raises the question as to whether Apple, which was outraged enough about Gizmodo’s $5,000 purchase of the lost iPhone for CEO Steve Jobs to reportedly call Gawker Media owner Nick Denton to demand its return, sicked its high-tech cops on Chen.
The San Mateo District Attorney’s office said the task force is investigating a “possible theft,” but wouldn’t say whether the target is Gizmodo or the person who found the iPhone in a bar and sold it to the site.
Yahoo News notes that the task force has investigated other cases in response to requests by committee members, including Symantec, Microsoft and Adobe.
“In either case, it’s hard to imagine — even if you grant that a theft may have occurred under California law, which requires people who come across lost items to make a good-faith effort to return them to their owner — how the loss of a single phone in a bar merits the involvement of an elite task force of local, state, and federal authorities devoted to “reducing the incidence of high technology crime through the apprehension of the professional organizers of large-scale criminal activities,” as the REACT website motto characterizes its mission.
Yahoo News: What is Apple Inc.’s role in task force investigating iPhone case?
Gizmodo’s publisher Nick Denton is not likely to back down to Apple or the police, says a publishing industry executive who has followed Gawker closely for years.
Denton, who owns Gizmodo’s parent company, Gawker Media, relishes a fight in the courts, says the executive, who asked not be named.
The seizure of Gizmodo editor Jason Chen’s computers is illegal, says Gawker Media, the parent company of the blog.
As a journalist, Chen is legally protected from divulging his sources of a story: in this case, details of Apple’s 4G iPhone, which Gizmodo purchased after an Apple engineer left a prototype in a bar. Gawker says the authorities are not allowed to search his computers in pursuit of a suspect, presumably the person who sold Gizmodo the iPhone.
Gawker cites section 1524(g) of the California Penal Code protecting journalists’ sources. It further cites O’Grady v. Superior Court, which extends the protections to online journalists. The O’Grady case is another Apple case, but one that the company lost. Apple tried to force Jason O’Grady to divulge his sources after his PowerPage website published details of another product Apple was working on.
Wow. Silicon Valley police have seized several computers belonging to Jason Chen, the Gizmodo editor who detailed Apple’s iPhone 4G prototype for the site.
California’s Rapid Enforcement Allied Computer Team entered editor Jason Chen’s home without him present, seizing four computers and two servers. They did so using a warrant by Judge of Superior Court of San Mateo. According to Gaby Darbyshire, COO of Gawker Media LLC, the search warrant to remove these computers was invalid under section 1524(g) of the California Penal Code.
The technology site has just posted some of the details and paperwork, including Gawker Media’s response.
Gawker says the seizure of Chen’s computers is illegal. As a journalist, he is legally protected from divulging his sources, and authorities are not allowed to search his computers in pursuit of a suspect (presumably they’re after the identity of the person who sold Gizmodo the iPhone).
Here’s a interesting story about secrecy and making mistakes at Apple. The story is told by Woz, Apple employee number one (check out his hilarious shirt).
While Woz was waiting in line to buy the iPad last month, an Apple test engineer showed him a prototype iPad. It was just a few hours before the device went on sale. Woz, who is still an Apple employee, fired up the Numbers app. Little did he know, the unit was 3G test prototype, and was not to be shown or used outside of secure areas at the company HQ. Unfortunately, Woz’s playing with it must have somehow sent up a warning flag at Apple.
“… I can tell you that the test engineer who showed me an iPad after midnight, for 2 minutes, during the iPad launch was indeed fired. I opted to spend 2 minutes with Numbers on this iPad, trying some stunts I’d seen on Apple’s website demo video. I was not told that it was a 3G model and I had no way to know that. I was told that this engineer had to wait until midnight to show it outside of Apple’s secure area. And I’m an Apple employee who he was showing it to. My guess is that he was allowed to take the iPad outside of the secure area but still not supposed to show it.”
The test engineer was fired for betraying Apple’s ironclad rules on secrecy. The device was not to be shown to anybody — not even Woz. (And worse, Woz told Steve Jobs about seeing the iPad that night. Jobs himself said it was “no big deal.”)
On the other hand, Gray Powell, the Apple engineer who lost an iPhone 4G prototype at a bar, is still employed at Apple.
“Product secrecy is good for Apple and should be strictly enforced, but maybe 10% of niceness and 90% of strictness is OK too,” writes Woz.
It seems mistakes are forgiven, but betrayals are not.
Gizmodo: Steve Wozniak On Apple Security, Employee Termination, and Gray Powell
There’s another juicy wrinkle in iPhonegate. The Silicon Valley cops are investigating, reports CNet:
Silicon Valley police are investigating what appears to be a lost Apple iPhone prototype purchased by a gadget blog, a transaction that may have violated criminal laws, a law enforcement official told CNET on Friday.
Apple has spoken to local police about the incident and the investigation is believed to be headed by a computer crime task force led by the Santa Clara County district attorney’s office, the source said. Apple’s Cupertino headquarters is in Santa Clara County, about 40 miles south of San Francisco.
The German airline Lufthansa is offering a free flight to Germany to Gray Powell, the unfortunate Apple employee who lost a prototype iPhone 4G.
Powell lost the prototype iPhone in a German beer garden in Redwood City. It ended up being sold to Gizmodo and became the biggest tech story in recent memory, catapulting Powell into unwelcome notoriety. To make him feel better, the airline is offering to fly Powell to Munich on Business Class, and wants him to check out their new Bavarian Beer Garden Business Lounge.
“We though you could use a break soon,” said the airline’s open letter to Gray, posted to the company’s Twitter account. “And therefore would like to offer you complimentary Business Class transportation to Munich, where you can literally pick up where you last left off.”
The full letter of invitation is below.
[via iClarified and MacDailyNews]
As the focus of iPhonegate shifts to the legality of Gizmodo’s purchase (hint: it looks very dodgy), we have to ask: who would you rather be right now? The poor schlub who lost the iPhone in a bar? Or the guy who found it, made a half-hearted effort to return it, and sold it to a ferociously-competitive tech website, which may be on the wrong side of the law?
[polldaddy poll=3089952]
Apple has filed a very interesting patent for a travel app called iTravel that books flights, hotels and car reservations. But the most interesting part is how it uses a radio chip to check you in at the airport, whisk you through security and allows you to wireless board your flight.
The iTravel app uses Near Field Communications, a short-range wireless technology that is starting to become widely used in cell phones for mobile ticketing, payment and electronic keys, especially in countries like Japan.
Apple is rumored to be adding NFC chipset to the next iPhone. If so, it could turn the iPhone into an electronic wallet, allowing you to for everything, from a cup of coffee to a subway ride. Your iPhone could unlock your car, pick up e-coupons at the local mall, and pay for all your supermarket groceries just by laying it on top of the checkout.
iFixit is famous for its authorative Apple product teardowns. I just emailed the CEO, Kyle Wiens, with some questions about Gizmodo’s teardown. Here’s Kyle’s take:
Gizmodo emailed me asking the same thing.
I asked them why they didn’t remove the (very removable) EMI shields.
It’s closer to production than I was expecting. I’d say this thing is very very close.
What sucks for Apple is if they have to cut features for some reason. Of course the prototypes would have all the features they’re considering (flash, camera, etc.). But realities force feature removal at the last minute, like they did with the iPod Touch. I’m sure the iPod Touch prototypes had cameras in them.
Before returning the iPhone it bought from a guy in a bar for $5,000, Gizmodo performed a teardown. It has just published the results. Unfortunately, it’s pretty uninformative. The teardown reveals the iPhone has a much bigger battery (19% larger), while the rest of the components are much smaller to make room.
The big question — whether the new iPhone runs Apple’s A4 chip — is unanswered because Apple bonded a non-removable metal plate over the motherboard.
The main logic board is one very weird piece of this puzzle… Unfortunately for us, Apple intends to keep this a secret. There are no markings on the board, but even so, the board was encased in metal all around so nothing could get through and would be very difficult to remove without breaking the device. Anyone trying to take this part off the phone would damage the device irreparably. On top of this metal, there was a thermal paste-like material. And on top of that, black tape. They really didn’t want people looking inside.
Obviously, Apple was afraid of this device falling into the wrong hands, which is exactly what happened. One clue whether it runs the A4 is the smaller circuitry. The A4 is a system-on-a-chip, which would require less supporting components.
Apple’s executives dropped several references to “extraordinary” new products during the Q2 conference call, but unfortunately gave little clue what they might be.
Indeed, one Wall Street analyst asked if they were entirely new products, or upgrades to current products.
Peter Oppenheimer, Apple’s CFO responded: “We’re just not going to help our competitors (by talking),” he said.
But he added: “We’re very confident in our product pipeline and very excited about coming months.”
The conference call references reiterate Steve Jobs’ Q2 press release: “… we have several more extraordinary products in the pipeline for this year,” Jobs said.
Who wants to bet it’s a bigger iPad?
Apple is sweeping up PC switchers and new iPhone users by the millions.
Take the 8.75 million iPhones Apple sold in the March quarter. Add them to the 42.4 million sold at the end of the last quarter. That makes 51.15 million iPhones sold to date. That’s a lot of iPhone users.
Also consider that half of the Macs sold in the quarter from Apple stores were to people who have never owned a Mac.
The March quarter was Apple’s best ever for iPhone sales, racking up more than double the number of units sold in the same quarter last year. Mac unit sales are up 33 percent. Apple is projecting similar numbers for the next quarter.
And there’s no end in sight. On the analyst conference call right now, Apple COO Tim Cook is talking about increased retail distribution points (like Radio Shack) and the massive growth opportunities in China. And all this during a recession.
The beta 2 of iPhone OS 4 has just been posted to Apple’s Developers’ site. The build is 8A248C, and developers can get it here.
Apple has just reported record earnings for Q2 2010. Earnings and profits were the best ever for a non-holiday quarter, and sales of Macs and iPhones were up by a big margin. The only blip is iPod sales — down 1 percent year-on-year.
“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” said Steve Jobs in a statement. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”
Highlights:
This week the TidBits website celebrates a special landmark: it’s the oldest purely digital technology publication on the Internet.
Started in 1990 by Adam and Tonya Engst, TidBits is celebrating its 20th anniversary of publishing “all the news that’s fit to byte.”
It started as a Hypercard stack and evolved into a text pub distributed through the web, email, AOL and Usenet, plus innumerable BBSes.
Today it’s stronger than ever, publishing a website, mailing list, iPhone app, Twitter feed, Kindle subscription, and podcast. Plus, it has a popular eBook publishing wing, TidBITS Publishing Inc., which has sold about 250,000 Take Control ebooks.
To celebrate, Adam has put together a testimonials page from more than 50 Mac industry leaders. Add your own comments to the page.
Apple sent Gizmodo a formal letter asking for its iPhone back (proving it was genuine) — and Gizmodo is returning it, along with a nice note asking Apple to go easy on the kid who lost it.
Gizmodo editorial director Brian Lam says Apple called him today asking for its iPhone back. He said he’d be happy to oblige, if he received a formal written request from Apple’s legal department.
He duly received the following:
It has come to our attention that Gizmodo is in possession of a device that belongs to Apple. This letter constitutes a formal request that you return the device to Apple. Please let me know where to pick up the unit.
Sincerely,
Bruce Sewell,
Senior Vice President & General Counsel
Apple Inc.
Lam wrote back putting him in contact with his colleague Jason Chen, who actually has the phone.
Happy to have you pick this thing up. Was burning a hole in our pockets. Just so you know, we didn’t know this was stolen when we bought it. Now that we definitely know it’s not some knockoff, and it really is Apple’s, I’m happy to see it returned to its rightful owner.
P.S. I hope you take it easy on the kid who lost it. I don’t think he loves anything more than Apple except, well, beer.
As well as mentioning that Gizmodo didn’t know the iPhone was stolen when they bought it, Lam also says the guy who sold them the iPhone had earlier tried to return Apple it to Apple. Apparently, he called customer service but go the runaround.
The “sorry Apple engineer” who lost a 4G iPhone at a Bay Area bar has been identified as Grey Powell, Gizmodo reports. Powell is a 27-year-old software engineer with a taste for the sauce (judging by his pictures, like this one above with a PBR). He left the test unit at the Gourmet Haus Staudt in Redwood City several weeks ago.
“I underestimated how good German beer is,” he typed into the next-generation iPhone he was testing on the field, cleverly disguised as an iPhone 3GS. It was his last Facebook update from the secret iPhone. It was the last time he ever saw the iPhone, right before he abandoned it on bar stool, leaving to go home.”
Left on a stool, the iPhone was handed to a guy sitting next to Powell. The guy asked around to see if anyone had lost it, but when no one claimed it, he took it home.
When he woke up after the hazy night, the phone was dead. Bricked remotely, through MobileMe, the service Apple provides to track and wipe out lost iPhones. It was only then that he realized that there was something strange that iPhone. The exterior didn’t feel right and there was a camera on the front. After tinkering with it, he managed to open the fake 3GS.
However, Gizmodo does not explain how the iPhone came into their possession — which may be the most important part of the story. “Weeks later, Gizmodo got it,” is all that is said. Gizmodo publisher Nick Denton paid just $5,000 for the iPhone, he admitted to the AP. According to California law, the iPhone is stolen even it was accidentally left at a bar. The finder is legally obliged to return it to Apple. Instead, they sold it to Gizmodo, who at the time of purchase knew it was Apple’s property.
This is pretty funny (except for the poor schlub at Apple who lost the iPhone, of course).
So I did it again this last week, consumed way too much straight vodka within perhaps an hour. The party started at 7, I had to be removed by 10pm because I was biting/attacking/wanting/insulting people and in the process lost my employers iPhone 4G prototype model. It was lost at Fahrenheit Ultra Lounge & Restaurant downtown San Jose. The phone was hidden inside of an iPhone 3G case. The device has a front facing camera, 80GB of storage. The device, when found was probably running a newer version of iPhone OS but my employer bricked it remotely within a few hours. Pretty sure i’m going to lose my job over this so if you find the phone please email me. Thanks
Apple’s next iPhone seems to answer a lot of geeks’ prayers. It’s got a forward-facing camera, a flash unit, and a super high-resolution screen. Combine that with multitasking and and universal inbox in OS 4.0, and who could say no?
Well, plenty of people, it seems. There’s lots of haters out there put off by the iPhone’s boxy industrial design. Many prefer curves it seems.
Let’s put it to a poll. Will you be buying the new iPhone this summer?
Gizmodo publisher Nick Denton says the “sorry Apple engineer” who left the 4G iPhone at a bar may have been identified. He says he’s calling the poor bastard, and the story is likely to follow.
Earlier in the day Denton promised to reveal the full story of how Gizmodo acquired the next-gen iPhone. The story will is a “corker” (a good story), Denton tweeted earlier.
Minutes ago Denton tweeted the following:
iPhone update. We think we’ve identified the sorry Apple engineer who left the next-gen phone at the bar. Calling in a min.
Earlier Denton tweeted that Gizmodo had paid for the pre-production iPhone, raising the likelihood that Gizmodo is in possession of stolen goods. According to California law, the iPhone is stolen even it was accidentally left at a bar. The finder is legally obliged to return it to Apple. Instead, they sold it to Gizmodo, who at the time of purchase fully knew it was Apple’s property (how could they not?).
Techcrunch and a couple of other sites are saying the price was $10,000 – but no one is offering any evidence.
Apple still hasn’t officially responded to the story.
UPDATE: Denton paid just $5,000 for the iPhone, he told the AP. As Merlin Mann tweeted: “Denton inflates traffic for a gadget blog by buying a stolen phone that doesn’t work? It’s like Christmas Morning for why the web sucks.”
For the next three weeks we’re going to be publishing a series of posts called “My Close Encounters with Steve Jobs.” Written by David Bunnell, the founder of Macworld magazine, it’s a bunch of great stories about Jobs and the launch of the Mac. It’s a excellent, insightful read with a ton of previously unpublished stories and details. Starting Tuesday — Part 1: Meeting Steve.