Like other software releases, the new “Spirit” jailbreak can be applied to any iPad, iPhone and iPod Touch running firmware 3.1.2, 3.1.3 or 3.2, enabling users to break into their own devices and run programs not otherwise approved by Apple.

The jailbreak hack was first discovered by Dev Team member “Comex,” who Tweeted that the “Spirit” jailbreak wasn’t based on a browser exploit in April. The jailbreak was also posted on YouTube, showing that the hack provides a root shell with full access to the iPad file system.

The Dev Team is notorious for breaking into the iPhone OS, and subsequently making the exploits public.

Apple has its Apple’s iTunes and App Store under lock and key, enabling users to only access “company approved” applications. Jailbreaking occurs when users unlock their mobile devices, allowing them to access and run hundreds more applications, while giving them greater control and freedom to install more features and functions onto their iPhone, iPad or iPod Touch.

The latest jailbreak hack was first demonstrated on the iPad in early April, just three days after the release of the popular Apple tablet computer. Specifically, the latest jailbreaking program enables users to install an unauthorized digital equivalent to the Apple App Store called Cydia, which allows users to access unauthorized software such as “Backgrounder” — a program that gives users the ability to run more than one application at once. Cydia software was initially used in iPhone jailbreaks, but can be updated to run on the larger iPad.

Unlike previous exploits, the “Spirit” jailbreak is one that is untethered, meaning that users are not required to plug their devices into their computer every time they reboot. Up until now, hackers attempting to jailbreak the iPhone 3GS and latest iPod Touch could only apply a “tethered” jailbreak, which prohibited them from performing a hardware reset without connecting it to their computers via a USB cable.

There are some drawbacks for those who choose to go the jailbreaking route. For one, the warranties are voided once an Apple device is jailbroken. And users also eliminate any chance of receiving updates, patches or technical support from Cupertino.

However, this latest jailbreak release represents a big leg up for hackers in the continual volley between Apple and the jailbreaking community. But Apple will likely find other ways to thwart the Dev Team hacker community in their quest to fight piracy. In addition to running unauthorized third-party apps, jailbreaking can be used by hackers to steal software from the Apple App Store.

Resource:
http://www.crn.com/security/224700496

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Deals

Analysts say 2010’s third-largest U.S. tech acquisition grants Palm’s devices global production and distribution reach while launching the world’s top PC maker into a tech arena experiencing blistering growth.

The news on Wednesday surprised many on Wall Street, since much of the long-running takeover speculation surrounding Palm had shifted in recent weeks to focus on potential Asian bidders, such as China’s Lenovo (0992.HK).

An early pioneer in handheld devices, Palm once dominated the market but has since been surpassed by Apple’s iPhone and Research in Motion’s (RIM.TO) BlackBerry. Palm put out a new mobile operating system, the well-reviewed webOS, last year but even that has been overshadowed by Google Inc’s (GOOG.O) Android software.

In a sign of Palm’s struggles, the money-losing company headed by Jon Rubinstein — an ex-Apple executive famous for developing the iPod — slashed revenue expectations for the current quarter. It said slow product sales have led to low order volumes from carriers.

“If you saw the guidance Palm just put out, it was clear they had to sell,” said Phil Cusick, analyst at Macquarie Research. “Given how quickly Palm’s business was falling off and how fast their cash was going out the door, they’re lucky to get what they got.

Palm reported losses for each of its last two fiscal years.

Shares of Palm, 30 percent owned by Elevation Partners, jumped 27 percent to $5.88, above HP’s $5.70 cash offer. Some investors could be betting on a higher bid, while others could be covering short positions on the heavily shorted stock, analysts said..

HP said the deal for Palm, which both boards have approved, valued the company at $1.2 billion including debt. Based on Palm’s latest filing, the deal values Palm’s 167.892 million shares outstanding at $957 million.

Analysts said HP has deep pockets to invest in Palm, can expand its carrier relationships and negotiate better component pricing from existing suppliers.

“PC companies don’t need cellphone-type margins to make the model work; they can be much more price-aggressive in capturing share and will certainly drive margins down for everyone else,” said Avi Cohen at Avian Securities.

Bank of America Merrill Lynch advised HP, while Goldman Sachs advised Palm.

GOOD DEAL OR NOT?

HP’s foray into the fiercely contested smartphone arena, while it may not immediately threaten Apple, and Research in Motion’s BlackBerry, may increase pressure on Nokia (NOK1V.HE), Motorola (MOT.N) and other device manufacturers now battling to expand their market share.

“Nokia will be one of the most affected players,” said IDC analyst Francisco Jeronimo. Because of a “wrong portfolio and lack of carrier support, Nokia never moved from its eighth position…in the smartphone segment. This deal puts also pressure on Motorola and HTC.”

Others, however, were more skeptical about HP’s ability to turn around Palm, whose Pre and Pixi phones have withered in the face of fierce competition.

“If HP wants to have a global role in the mobile space, spending $1.2 billion in Palm is not the way. Palm has no brand outside the U.S., and it has no distribution outside the U.S.” said John Strand, chief executive of Strand Consult.

“To pay $1.2 billion for a U.S.-centric mobile player that’s not successful is a first-class way to destroy shareholder value. Palm has tried to move from the PDA world into the mobile world for eight years without success,” Strand said.

According to Gartner, Palm held 1.2 percent of the global smartphone market in 2009, compared with Nokia’s (NOK1V.HE) 41.1 percent, RIM’s 19.9 percent and Apple’s 14.4 percent.

Despite Palm’s shortcomings, persistent takeover rumors have attracted many investors to the heavily shorted stock. For example, Philip Falcone’s hedge fund Harbinger Capital Partners LLC bought Palm shares on April 12, when they were trading between $5.43 and $6.29, and had a 9.48 percent stake.

The deal may mark the culmination of a long-running effort by private equity firm Elevation Partners, the private equity firm that boasts U2 frontman Bono among its partners.

Elevation — which bought a quarter of Palm for $325 million in 2007 — had brought in numerous ex-Apple executives over the years in hopes of turning the company around, including Rubinstein.

It was unclear how much Elevation, which has invested about $460 million in Palm, made or lost.

Some investment banking sources had thought that Lenovo (0992.HK) was the leading candidate to buy Palm after the U.S. company was rebuffed by other potential Asian buyers including HTC Corp (2498.TW) and Huawei HWT.UL.

Palm now expects fiscal fourth quarter revenue in the range of $90 million to $100 million, compared with its mid-March forecast that revenue would be less than $150 million.

Todd Bradley, executive vice president of HP’s computer division, said the company plans to “invest heavily” in Palm, increasing spending on sales and marketing and research and development in the hope of spurring the developer community into writing more applications for the platform.

Palm’s app universe now has more than 2,000 applications, dwarfed by Apple’s App store with closer to 200,000 apps.

Bradley also said Palm’s platform is attractive for an entire ecosystem of mobile devices, from smartphones to slate devices to netbooks.

HP Executives expected a few cents” dilution for from the deal in the second half of fiscal 2010 and “mild” impact in 2011 — for a company that in the fiscal first quarter reported non-GAAP earnings of $1.07 per share.

“Coupled with our scale, global reach and investments in the ecosystem, we expect we will see solid growth,” he said.

HP already has a smartphone, the iPaq, which runs on Microsoft’s (MSFT.O) Windows mobile platform. But the device has gained little traction in a crowded market.

Rubinstein is expected to remain with the company, HP said in a statement, adding that the acquisition would likely close during its third fiscal quarter ending July 31.

Shares of HP fell 1 percent to $52.75 in extended trading from their New York Stock Exchange close of $53.28.

HP “would be one of the few companies that I think could successfully turn Palm around. The company has great brand, great international distribution,” said C.L. King Associates’ analyst Lawrence Harris. “That will open a lot of doors.”

Resource:
http://www.reuters.com/article/idUSTRE63R5HO20100429

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Apple will hold the WWDC from June 7 through June 11 in San Francisco at the Moscone West conference center, a popular venue for local technology conferences.

Naturally, Apple did not make any statements about whether it would launch new hardware at the show, but did make it clear that iPhone OS 4 would be in the spotlight. Apple announced a developer preview of the OS on April 8.

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Not surprisingly, an Apple announcement of a new iPhone will be eagerly anticipated. However, the saga of the lost or stolen prototype iPhone has overshadowed the launch, as Gizmodo has already printed a hands-on evaluation of the new prototype. Consumers, of course, will be interested to see whether the site was indeed right.

That iPhone prototype issue is currently being treated as a potential criminal investigation by the San Mateo Country District Attorney’s office, although no charges have been filed. Police seized computers and servers belonging to Jason Chen, a Gizmodo editor, and reports now say that police know and have interviewed the individual who found the prototype at a Redwood City, Calif. cafe.

Apple said sessions would be concentrated in five areas: application frameworks, the Internet and Web, graphics and media, developer tools and the core OS. Apple will almost certainly encourage and assist developers into implementing HTML 5 technologies into their applications, as Apple has rather vocally criticized Flash and has banned it from even content creation. However, a press release announcing the WWDC show listed just one, “Using HTML5 Local Data Storage”.

Additionally, there will be five iPad and five iPhone Apple Design Award winners announced at WWDC 2010, Apple said. “There is no requirement to enter and winners will be selected from the App Store based on criteria that includes design, technical excellence, innovation, quality, technology adoption and performance,” the company said. Apple has also listed sessions on iAds, its new integrated mobile ad platform, which have already been criticized for misreading customer preferences.

Resource:
http://www.pcmag.com/article2/0,2817,2363173,00.asp

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But Gizmodo is loudly defending its innocence and its journalistic ethics in the face of what could become a painful and expensive legal contest.

Technology blog Gizmodo is in a difficult position. The site’s editor, Jason Chen, recently had his home searched and electronics equipment seized to see if he committed a crime at any point over the past few weeks when he paid $5,000 for a lost iPhone 4G.

Chen says he’s innocent and Gizmodo’s legal counsel has publicly said that Chen was acting well within journalistic standards. The legal counsel says that he cannot be charged with any crime for acquiring the iPhone 4G.

But determining exactly what happened and whether laws or journalistic ethics were violated might be more difficult that it seems on face value. Gizmodo has been forthright about its contention that it acted within its rights as a news service in sharing information about the Apple iPhone prototype with the public.

If its account is true, it appears that Gizmodo tried to perform journalistic due diligence before it started the process of acquiring the iPhone 4G and posting details about the device on its site.

But that doesn’t mean that Gizmodo was necessarily entirely right in this scenario. It also doesn’t mean that law enforcement has made the right moves.

It seems that there is adequate blame to go around. And it’s incumbent upon us as the spectators to be as informed as possible before we pass judgment.

So, let’s take a look at 10 things to know about Gizmodo’s iPhone 4G saga.

An Apple employee lost it

Although some have said that Apple secretly leaked the iPhone 4G to Gizmodo, it reportedly didn’t happen that way. An Apple employee lost the iPhone 4G in a bar, which was eventually recovered by another patron. After unsuccessful attempts at getting the iPhone back into Apple’s hands, the person offered it up to Gizmodo.

According to Gizmodo, the person held onto the iPhone for weeks before giving it to the tech blog. That’s an important factor in all of this. Considering the person tried hard to give the device back to Apple, some fault might need to be placed on the hardware company for not performing its own due diligence.

Gizmodo paid $5,000 for it

Gizmodo reported recently that it paid $5,000 for the lost iPhone. That figure might not mean much to some, but under California law, that puts the transaction into felony territory. That’s not a good thing. But it also speaks to whether or not Gizmodo should have paid for the product and if it acted ethically by doing so.

It’s difficult to say what any publication or editor would do in a similar situation, but a spectator’s individual ethics must come into play when deciding where the fault should be placed.

Apple had ample time to recover it

As mentioned above, Apple had about three weeks to find and retrieve the lost iPhone, according to Gizmodo. The tech blog said that the person who recovered the iPhone from the bar attempted to contact the company to no avail. Rather than hold on to it, he decided to sell it off for a handsome sum.

It makes sense. But it also begs the question of whether or not Apple truly cares. Steve Jobs has a proven track record of being secretive and unbending in his distaste for those who leak company secrets. If he was really that upset about what was lost, wouldn’t he have attempted to more proactively seek it out? One would think so.

There’s still no telling if it’s really the iPhone 4G

Try as it might to say that the phone it found is in fact the iPhone 4G, Gizmodo, like the rest of us, cannot confirm it. Apple has yet to say whether or not the lost device was actually the new version of the iPhone and it’s entirely possible that the device is one of many prototypes the company is working on.

As appealing as it might be to seemingly look at the next version of the iPhone that Apple doesn’t want us to see, there’s no way to know if it’s what we’ll be using in the coming months. Gizmodo recovered an iPhone prototype, but not necessarily the iPhone 4G.

Apple finally got it back

After the news broke that Gizmodo had acquired the iPhone and it discussed its features, Apple’s legal counsel sent a memo to Gizmodo requesting the device back. The tech blog used that request as proof that it was in fact an authentic Apple product.

Upon receiving the iPhone, Apple has said nothing about the device and has yet to confirm it was really the iPhone 4G. Nonetheless, the iPhone is back in Apple’s hands and we won’t learn anymore about it until Apple finally confirms its existence.

Chen could be charged with a felony

Until Apple recovered the iPhone, it was all fun and games for Gizmodo and those that wanted to learn more about the new iPhone. But it quickly turned serious when reports started surfacing claiming Chen could be charged with a felony because of the way he acquired the device.

Since then, his home has been searched and computers and other electronics have been seized by local police in an attempt to determine if a crime was actually committed. For his part, Chen says he is innocent. But whether or not the district attorney will agree remains to be seen.

He could also be covered under media shield laws

Chen might have a valid defense if he is in fact, charged with a crime. Gizmodo’s chief legal counsel sent a letter to local police, which was subsequently posted on the tech blog, saying that Chen is a journalist and thus, under California (and Federal) law, a warrant cannot be issued to search his home and seize property that could have been used for the purposes of a news story.

Court decisions in the past provide Gizmodo and Chen with the precedent they need to show that online journalists are, in fact, covered under the same protections as traditional journalists. Assuming the district attorney interprets the laws the same way Gizmodo’s legal counsel does, Chen might not be charged with a crime.

Apple hasn’t chimed in

As the drama continues at Gizmodo, Cupertino has been silent. Steve Jobs, his executives, and even his PR team have been mum on whether or not they have any opinion about what’s happening to Chen or Gizmodo. It’s rather typical from Apple.

The company has imposed its will by acquiring the lost iPhone and now that its work is done, it has decided to say nothing about the issues Gizmodo is facing. Depending on where the law-enforcement effort goes, though, at least one Apple employee—the man who lost the iPhone—might need to chime in.

Gizmodo maintains its journalistic standards

Some journalists have contended that Chen’s decision to buy the iPhone for $5,000 breaks journalistic ethics and standards that have been in place for years.

They contend that from an ethical perspective, Chen shouldn’t have paid for the story and instead should have reported on the news that the iPhone was lost.

Gizmodo and Chen don’t agree. They contend that they were doing what they were supposed to do: inform the public on Apple’s upcoming products. Either side of the debate can make a valid argument, but it’s tough to say which is right.

It’ll probably blow over

In the end, the chances of Chen being charged with a crime and Apple taking issue with Gizmodo seem relatively slight. Gizmodo could potentially have its trump card, thanks to journalistic protection.

And Apple, realizing that Gizmodo was only doing its job, likely won’t press the issue more than it already has. In a couple weeks, Gizmodo’s ordeal with the iPhone 4G will blow over and the story will be just another interesting saga to discuss in end-of-the-year roundups. But it’s certainly fun to watch while it lasts.

Resource:
http://www.eweek.com/c/a/Mobile-and-Wireless/10-Things-You-Should-Know-about-the-Gizmodo-iPhone-4G-Probe-313161/

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Responding to my email asking for confirmation of the new devices, a Dell spokesman said: “Dell continually develops and tests new products that extend the mobile experience. We have not made any product announcements and do not comment on speculation, rumor or unannounced products.”

Specs and design-wise the Lightning device that Engadget is showing looks rather sweet, as least on paper. According to Engadget it’s a “portrait slider” device that houses a robust Snapdragon processor and a 4.1-inch display based on thin and bright OLED technology. It has a five megapixel autofocus camera, 1GB of flash with 512MB RAM, plus 8GB of storage on a MicroSD card. It also has GPS, an accelerometer, compass, FM radio, and full Flash support including video playback.

Though the phone will apparently will tap into AT&T and T-Mobile 3G networks when it arrives later this year, Engadget says Lightning could also receive an upgrade that would let it run on faster emerging 4G so-called “LTE” networks, shorthand for Long Term Evolution.

The Thunder handset carries similar specs.

Resource:
http://content.usatoday.com/communities/technologylive/post/2010/04/tech-site-dell-to-produce-slick-windows-and-android-smartphone/1

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Besides declining to work with Adobe to bring Flash to the iPhone OS, Apple has recently changed the Terms of Service for the iPhone SDK to disallow development with unauthorized tools like Adobe’s new Creative Studio 5.

Earlier this week Adobe’s Mike Chambers indicated that due to the new restrictions in the iPhone SDK TOS, Adobe won’t contine development of tools to create iPhone apps in Flash CS5. Chambers wrote that Apple wants to “make it difficult for developers to target other platforms.”

Apple spokeswoman Trudy Muller shot back in a statement pointing out that the iPhone OS supports common open standards like HTML5, CSS, Javascript and H.264, calling Flash “closed and proprietary.”

But does support for open standards actually make the iPhone OS itself open? After all, Flash also supports H.264, but as Muller correctly points out that doesn’t stop it from being closed.

Does Apple’s decision to restrict development tools and methods really have anything to do with openness? It seems unlikely.

Apple’s own approach, the iPhone SDK, is proprietary and closed as well and gives Apple control all the way through distribution to consumers.

In response to an email from an OS X developer critical of the new SDK TOS, Steve Jobs recently outlined a more believable, if not entirely accurate, rationale.

Jobs wrote, “intermediate layers between the platform and the developer ultimately produces sub-standard apps and hinders the progress of the platform.”

The problem with this argument is that using non-Apple sanctioned (ie controlled) development tools isn’t an indication of poor quality any more than using the official tools improves it. Ultimately quality is in the developer’s hands.

As to hindering progress, that’s only true if you define platform as the iPhone SDK, rather than the iPhone, iPod Touch, iPad or even iPhone OS itself. In reality app development on these platform is limited by the iPhone SDK

Their capabilities could be exploited to come up with even more innovative apps by third parties if not for Apple’s obstruction.

It’s hard to believe that Apple’s reliance on DMCA anti-circumvention language and restrictive language in SDK agreements with developers is either open or conducive to progress. Both are artificial barriers to the creative process of developing software.

Even harder to believe is that Apple is oblivious to the growing government interest in various aspects of the iPhone business, including the app approval process.

Apple is already involved in various iPhone related patent lawuits against companies including prominent Android phone vendor HTC and worldwide mobile phone (and smartphone) industry leader Nokia. Federal investigators have already gotten involved in the Nokia dispute.

If Adobe ends up filing a lawsuit against Apple, which seems to be the rumor or speculation du jour every day, it would certainly lead to more pressure on Congress and federal regulators.

There’s no doubt Apple’s decision to outlaw converted Flash apps from the App Store will have a negative impact on Adobe, particularly with their new CS5 software having just been released. Some have argued that the reason for Apple’s oddly timed introduction of the next iPhone OS to developers was intended to coincide with Adobe’s CS5 launch.

The ability to convert Flash projects to iPhone apps has been touted as a major selling point for months, and with good reason given the number of App Store downloads. However that doesn’t automatically make what Apple is doing illegal.

Which may explain why there’s been no lawsuit from Adobe yet. The only grounds for forcing Apple to open the iPhone OS to third party application frameworks would seem to be an antitrust claim.

The iPhone, successful as it has been, hasn’t made Apple the number 1 mobile phone or even smartphone vendor in the US. Those titles belong to Motorola and Research In Motion (RIM) respectively.

Without a dominant market position Apple certainly can’t hold a monopoly so any antitrust complaint seems doomed.

However there still might be an alternative solution for Adobe and other companies who want to develop software for the iPhone without Apple’s blessing. They could throw support behind the Electronic Frontier Foundation (EFF) effort to get a DMCA exemption for smartphone jailbreaking.

Such an exemption would allow Adobe, Microsoft, Sun or any other application framework provider the chance to extend their architecture to the iPhone by piggybacking on consumer rights.

Resource:
http://www.afterdawn.com/news/article.cfm/2010/04/23/apple_rep_says_iphone_os_is_open_while_flash_is_closed_and_proprietary

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Opera promises faster downloads, less data traffic (Adds background)

HELSINKI, April 13 (Reuters) – Apple Inc (AAPL.O) has accepted distribution of Opera Software’s (OPERA.OL) Internet browser for its iPhone after a long review, opening a new and potentially lucrative market so far closely guarded by Apple.

There are numerous versions of Apple’s own browser on App Store, but Norway-based Opera is the first rival to get access to iPhone.

Opera applied on March 23 for its mobile browser to be distributed on iPhone, and it was available for downloading to consumers early on Tuesday, three weeks later. Usually the review process takes up to one week, developers say.

Analysts have said the decision was difficult for Apple — whose application store is the only way to distribute software for iPhone users — as its Internet browsing function is key behind the success of the iPhone.

Opera’s browser promises up to six times faster download speeds than Apple’s own browser and to cut data traffic by up to 90 percent.

Massive data traffic from iPhone mobile phones has caused problems for many operators’ networks

Resource:
http://www.reuters.com/article/idUSLDE63C02620100413?type=marketsNews

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But last week’s iPhone 4.0 preview, which isn’t due on the iPad until autumn, already makes it look much more attractive as a netbook or laptop replacement than it did on Wednesday.

I’ll admit I truly loathe netbooks. When the first models emerged at least they had their size going for them. Now they’re bigger and more expensive, but mostly dog slow.

Size and weight matters to me, and the iPad has had these advantages from the start. The disadvantages of an iPad over a laptop were many, but the lack of multitasking was the biggest. That’s been fixed now – at least well enough so most people don’t notice.

Lack of a physical keyboard is another problem, but iPhone 4.0 gets proper third-party Bluetooth keyboard support. Apple’s official keyboard accessory, the ‘iPad Keyboard Dock’, is very unlike-Apple.

It can only be used on a flat surface, and doesn’t look toddler proof: it places a lot of strain on a fragile connection. The Apple Wireless Keyboard will work, but it’s a generic device. It doesn’t make typing on your lap practical, as a custom-designed keyboard might*.

But the iPad has gained VPN support and crypto, two strong candidates for grown-up computing. Whether any of the iPhone OS ssh clients can now sprout standard features such as port forwarding remains to be seen. I have no fear of jailbreaking to get at such raw features, but plenty of people quite understandably do.

Apple’s version of multitasking may almost be good enough. I liked the observation that “if you see a stylus, they blew it. In multitasking, if you see a task manager… they blew it. Users shouldn’t ever have to think about it.”

True, but Apple’s method gets weary and RSI-inducing very quickly. Remember that most of us, most of the time, switch between just two tasks. iPhone OS 4.0 lacks a quick gesture to achieve this.

But I think with the OS update, the iPad will be finding its way into potential buying decisions in a way it didn’t at launch.

In January I had three good reasons to dismiss it as a laptop alternative: price, multitasking and the lack of a USB port. I consider the latter an essential gateway to a wider world of hardware such as cameras, card readers, controllers and things we haven’t thought of yet.

Well, USB obviously isn’t going to be fixed in this year’s model, and may never be. It clashes with the purity, or puritanism, of the Steve approach. Multitasking has been fixed. The price for UK users still hasn’t been revealed – so that’s a variable. Obviously I’m not going to be writing a book on an iPad. But quite unexpectedly, it’s looking like a useful bit of daily computing kit.

What are your deal breakers?

In the past ten years I’ve tried every Bluetooth keyboard going and paired it with a smartphone. Each time, against my better judgement, I thought it might work. They were all more trouble than they were worth.

Resource:
http://www.theregister.co.uk/2010/04/12/ipad_for_work/

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The company, which came into the iPhone market last December promising to bring a bit of “Tesco value” to the must-have phone, said it had also cut the cost of the more advanced 3GS handset.

The move is the latest in a series of small price cuts by network providers which mean slowly but surely the cost of buying and running an iPhone has been coming down to more affordable levels.

At Tesco, the cost of an 8GB 3G iPhone now starts at £100. The 16GB 3GS handset, which is faster and comes with longer lasting batteries, costs £200, while the 32GB 3GS model is retailing at £275.

For each deal customers have to sign a 12-month contract at a cost of £35 a month. The price includes unlimited texts, data and Wi-Fi, as well as 750 voice minutes a month.

Anyone willing to pay £45 a month over 24 months can get a 16GB 3GS handset for free.

When Apple launched the iPhone in the UK three years ago, buyers had to pay £269 upfront and sign an 18-month contract costing at least £35 a month. O2 had sole rights to sell it in the UK until last year.

But in the face of a growing number of similar smart phones which are significantly cheaper than the iPhone, Apple has relaxed its pricing and sales controls – a little.

Orange, Vodafone and Tesco now also sell the phones, and in recent months the prices have started to fall.

Tesco was the first to introduce 12-month contracts last December. Until then buyers either had to sign up for an 18-month contract or pay the full price for the phone and opt for a pay-as-you-go plan.

“Tesco Mobile’s iPhone tariffs have been very popular,” said Lance Batchelor, chief executive officer of Tesco Telecoms and Tesco Mobile. “We’ve now made them even better with a lower upfront cost for an iPhone and a new 12-month contract.”

The supermarket giant has declined to say how many Apple handsets it has sold in the past four months but said buyers had been attracted to its shorter 12-month contracts. It is also hoping to bring out a range of sim-only deals for iPhone users who are out of contract.

Rival operator O2 is selling the basic iPhone for £59 but requires buyers to agree to an 18-month, £35-a-month contract, and buyers get far fewer calls included in the package.

The price cuts may be influenced by the fact that the fourth generation iPhone is rumoured to be imminent and could be in the shops in as little as three months.

Resource:
http://www.guardian.co.uk/money/2010/apr/12/tesco-mobile-iphone-tariff

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One of the features missing from the iPhone and related devices has been a front-facing camera to allow video calls or video chat.

While video calling is not as popular as some telcos might like, video chat and video conferencing is used quite widely. The difference largely comes down to cost: video calling is a premium service (eg, Telstra charges 55c per 30 seconds compared with 37c for voice), while video chat comes out of the user’s Internet quota for the month.

9to5mac has noted the presence of various resources in the iPhone SDK 4.0 that signal the addition of video chat or conferencing.

In particular, the Conference framework includes a number of strings such as “Creating video conference call” and “Finalizing video conference call”.

Video chat/conferencing is pretty pointless on a handheld device that lacks a front-facing camera, so it is a reasonable assumption that this year’s iPhone and iPod touch – plus the next revision of the iPad – will have front-facing cameras.

9to5mac speculates that video chat could be used as part of Game Center, Apple’s forthcoming social gaming network.

There’s also the question of when the relevant APIs will be opened to third party developers. It is quite possible that they will be initially available only to Apple software such as iChat.

Resource:
http://www.itwire.com/your-it-news/mobility/38234-iphone-sdk-40-suggests-new-cameras-for-iphone-ipod-touch-ipad

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