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Apple Will ‘Vigorously’ Defend Against Nokia iPhone Lawsuit

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Photo: bloomsberries/flickr)

Apple will “vigorously” defend itself against a Nokia patent infringement lawsuit, according to financial documents released Tuesday evening. The remarks are the first made by the Cupertino, Calif. company about a lawsuit by Nokia that could be worth up to an estimated $1 billion.

“The complaint alleges that these patents are essential to one or more of the GSM, UMTS and 802.11 wireless communication standards, and that the Company has the right to license these patents from plaintiff on fair, reasonable, and non-descriminatory (“FRAND”) terms and conditions,” Apple said in a 10-K filing with the Securities and Exchange Commission. “Plaintiff seeks unspecified FRAND compensation and other relief. The Company’s response to the complaint is not yet due. The Company intends to defend the case vigorously.”

In a complaint filed last week, Nokia accuses Apple of “attempting to get a free ride” off the Finnish company’s research efforts and not agreeing to licensing terms. Nokia alleges patent infringement covers iPhones since 2007 and includes GSM, 3G and Wi-Fi transmission techniques along with speech coding, encryption and security. Piper Jaffray analyst Gene Munster believes Apple is seeking a 1 percent to 2 percent royalty, or $6 to $12 for each iPhone sold.

Apple=100,000 iPhone Apps, Microsoft=246 Windows Mobile Apps

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UPDATE: Oops. Sorry for the embarrassing headline typo. Fixed.

Leaping way, way ahead of competitors, Apple has approved more than 100,000 apps for the App Store, according to App Shopper, an app tracking site.

By contrast, there’s 246 apps for Windows Mobile, which has been around for six years, and about 96 apps for the Palm Pre (see Palm’s list of WebOS applications). Google’s Android,which is probably the iPhone’s strongest competitor, has about 10,000 apps, according to recent estimates. Google has yet to release official figures.

Apple in August said there were 65,000 apps. It took just another 10 weeks to approve more than 35,000 apps. (Apple has approved more than 100K apps, but the number actually available for download is slightly lower: about 93,000)

Nokia Sues Apple, Claiming iPhone Infringes 10 Patents

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Finnish cell phone giant Nokia has sued Apple, claiming the iPhone violates ten patents covering GSM, 3G WCDMA and WLAN technology. Nokia claims since 2007 the iPhone violated wireless data, speech coding, security and encryption. The lawsuit apparently stems from Apple’s refusal to license the technology from Nokia.

“By refusing to agree to appropriate terms for Nokia’s intellectual property, Apple is attempting to get a free ride on the back of Nokia’s innovation,” the company wrote in legal papers filed in Delaware’s Federal District Court. Forty companies, including “all the leading mobile device vendors” have agreed to Nokia’s licensing terms, according to the complaint.

[Nokia Complaint]

Apple Laughs At Recession: Record Profits on Record Sales of Macs and iPhones

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Apple has settled claims with state regulators who allege the company mishandled electronic waste.
Apple has settled claims with state regulators who allege the company mishandled electronic waste.
Photo: Thomas Dohmke

“Recession? What recession?” said Steve Jobs and co. on Monday as Apple reported record sales and near-record revenues for 2009’s fourth quarter.

While Wall Street and most of the technology industry limped along for the last three months, Apple’s fourth quarter revenues rose to a whopping $9.87 billion — the second best quarter ever after last Christmas.

Apple sold a record 3.05 million Macs during the quarter (17% year-on-year increase); 10.2 million iPods (down 8%); and 7.4 million iPhones (up 7%).

“We are thrilled to have sold more Macs and iPhones than in any previous quarter,” said Steve Jobs in a statement. “We’ve got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010.”

The results do not reflect the new accounting rules that recently went into effect allowing Apple to realize iPhone and Apple TV sales, which are currently spread over two years. If these sales were taken into account for the quarter, revenue would have been $12.25 billion, Apple said.

The company is a runaway profit machine. Gross margins were up to an unbelievable 36.6%, which rocketed profits 46% to $1.67 billion for the quarter. Yeah, that’s a lot of cash. Companies like Dell and HP are lucky if they can squeeze 5% profits out of their products.

Report: Apple to Activate Latent FM Radio in iPhone, touch

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Apple may enable iPhone and iPod touch users to receive FM radio via a built-in feature previously dormant, says a report. The Cupertino, Calif. company is developing a radio.app that operates similar to the FM feature in the latest iPod Nanos, according to the 9to5Mac blog.

Although the latest iPhones and iPod touch devices have long been able to broadcast via an FM signal, allowing hands-free operation in cars, reception of FM signals until now has been limited to the Nike+ system. Release of the Apple-built FM app is delayed as engineers work out kinks in integrating Mobile iTunes Store transactions. The function, already available for the iPod Nano, lets listeners of radio stations that support tagging to get song information available from iTunes and purchase music.

Apple Releases iPhone Firmware Update 3.1.2, Fixes Network Issues but Breaks Jailbreak

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Apple has just released a new firmware update, version 3.1.2 for the existing iPhone and iPod Touch range, which contains no new features but fixes an important issue with cellular network reception. The new software fixes dropped cell connections until the iPhone is restarted, according to Apple.

However, it looks like the update does contain a new baseband version in order to fix the issue, therefore if you have an unlocked iPhone 3G or iPhone 3GS, do not update until there is confirmation from a trusted source, like the iPhone DevTeam. If you’re planning to jailbreak, you should wait as this firmware version is currently incompatible with the latest jailbreak tools. But updates will soon be released to resolve the compatibility problem, according to the iPhone DevTeam.

The complete-ish list of changes, according to Apple’s cryptic update notes, is as documented below:

  • Resolves sporadic issue that may cause iPhone to not wake from sleep.
  • Resolves intermittent issue that may interrupt cellular network services until restart.
  • Fixes bug that could cause occasional crash during video streaming.

Clearly, it indicates no new features, unless there are some hidden ones. ;)

To download the new firmware for your iPhone, select the model below to download it directly from Apple’s server or open iTunes and click iTunes –> Check for Updates in the menu bar.

Going, Going Gone: Apple I Sells on eBay for $18,000

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The rare Apple I we noted was going to go on the block about a month ago has sold on eBay for nearly $18,000, a couple of grand over what guesstimates had it valued at $14,000 – $16,000.

And that’s without knowing whether it actually works: in the eBay description, seller Monroe Postman notes:

“I do not know if it is functional and I do not intend to power it up. If a trace on the board were to burn up due to a shorted component, it would radically decrease its value as an historical artifact and as, in my mind, a work of art (signed by the artist!). A few of the chips were missing when I purchased it and they have been replaced with the proper ones, although dated a year or two later, in some cases.”

If the buyer wants to come forward and talk about the purchase, CoM is all ears.

Thanks to eagle-eyed reader Bob who alerted us in the comments.

Man with iPhone Rage Threatens to Use Gun at Apple Store

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Frustrated iPhone owner Donald Goodrich. @HCSO
Frustrated iPhone owner Donald Goodrich. @HCSO

There’s frustration over stuff like dropped calls and tethering troubles, then, you know, there’s Frustration.

The latter was apparently what fueled Donald Goodrich, 38, to threaten to pull a gun on his iPhone at the Kenwood Towne Centre Apple Store in Cinncinati.

Goodrich came in with an iPhone that wasn’t working properly, telling the employee he was “So mad, I could pop a 9mm at it.”

To prove he meant business, Goodrich flashed the employee a gun hidden under his jacket.

The cool-headed employee told Goodrich she’d get his phone fixed and walked him over to a Genius. She then told her manager of his iHomicidal intentions, who called police.

Goodrich was charged with aggravated menacing, causing fear of harm to an Apple employee. He’s expected to be arraigned this morning.

No word on exactly what drove him to want to kill his phone.

Any guesses?

Via KY post, ifoapplestore

Apple’s Secrecy Strategy Ain’t Easy (MS Pink Phones)

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Earlier today, Gizmodo posted a pair of pictures of what are presumed to be the fruits of Microsoft’s Project Pink — long-rumored to be the so-called ZunePhone. The merits of the designs have already been debated endlessly online (most people seem to like the one above, called “True” “Pure” and are puzzled about the one below, “Turtle”). For what it’s worth, they seem perfectly fine to me and could even make a pretty big splash if they come to Verizon, have a great OS, a decent app library, and Xbox-linked games; as I’ve said before, it’s not about the product, it’s about the platform and the network.

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But since this is a Mac blog, I’m not going to spend a long time analyzing what Project Pink might or might not mean. I’m more interested in how this major leak, likely months before official announcement or release, shows just how difficult it is to handle the innovation thing the way Apple does: in secret, on time, and with big impact.

Consider what we knew about the iPhone prior to its release: That Apple would make a phone. Maybe. That’s it. Honestly, I wasn’t sure there actually was an iPhone until Steve announced it at MacWorld. We’d seen a million renderings from designers, none of which turned out to be even close to what Apple released. Compare that to what we knew about the Google G1: EVERYTHING. With the Pink phones, we now know virtually everything about the industrial design and the hardware, we know the OS, and we have a sense of the UI.

This doesn’t happen because Apple’s competitors are incompetent — far from it. It’s just the fact that in the media environment we have today, it’s almost impossible to keep secret anything that people want to know about. One slip-up by any of thousands of people can send your top-secret project out to the world. We don’t know the source of the Pink leak — it could literally be anyone — a Microsoftie, a Sharp employee, someone at the ODM, someone at the ad agency, someone at the PR agency, or even an embargoed journalist gone rogue. It’s incredibly hard to trace, and even harder to prevent from happening in the first place.

And this is why Apple’s ability to create, sustain, and often exceed hype is such a remarkable thing. There have been leaks at times, but nothing this big, ever. Instead, Apple manages to stoke the rumor fires just enough that we all have some notion of what it might make next — we’re all convinced that Apple’s making a tablet — but none of us have any idea of what the actual thing will be. We don’t even know which operating system such a tablet will run.

Maintaining that mystique requires incredible loyalty from your employees, extreme paranoia, and even an unwillingness to let any of your partners touch or see the final devices. It’s obviously so hard that Apple doesn’t even try to do it for incremental or non-surprising products, which could explain how all those case manufacturers leaked the nano with the video camera all those weeks ago.

It’s the stumbles of Apple’s competitors that remind me just how special Steve Jobs and team are when they’re at the top of their game. The reason the entire tech media corps went insane for the iPhone was that it was a great product and a huge surprise at once.

And in the connected age, that’s just as hard as a solid multitouch implementation.