Edible Apple

With closing arguments in the Apple/Samsung litigation slated to commence tomorrow, Apple CEO Tim Cook will meet with Samsung CEO Kwon Oh Hyun today in a last-ditch, slightly court-ordered, effort to see if the two tech titans can reach a settlement agreement before the case is finally put into the hands of the Jury.

The meeting will essentially be a conversation over the phone, with Bloomberg noting that the companies’ lawyers will report back to Judge Lucy Koh on what, if anything, is agreed upon as a result.

The case is the first to go before a federal jury in a battle being waged on four continents for dominance in a smartphone market valued by Bloomberg Industries at $219.1 billion.

As testimony in the trial drew to a close, Koh asked that the CEOs talk, and said she was “pathologically optimistic” they could settle claims over patents for smartphones and tablet computers. Heads of the two companies met before the trial began and were unable to reach a settlement. The two sides reported Aug. 18 that they had made no progress in narrowing the claims in the suit. The two sides are still filing motions with the court about jury instructions and exhibits.

With so much at stake, and both sides seemingly intransigent in their positions, a settlement agreement seems far from likely at this point.

via Bloomberg

Apple’s markt cap now makes it the most valuable company of all time. The stock today has been on a rampage, climbing upwards of 2.21% for a market cap of $620 billion. The intraday high for the shares checked in at $664.75 a share.

Network World reports:

The previous market cap record was set by Microsoft back in 1999 when its shares had a market cap of $618.9 billion. But in the interest of keeping the playing field level, some have noted that Microsoft’s market cap of yore in today’s dollars would be about $842 billion. If Apple wants to top that, it’s shares would have to rise to about $898 a share, the equivalent to a 35% appreciation in share price. A feat, to be sure, but with some analysts pegging Apple’s stock target close to $1000, it’s certainly a possibility.

Back in May, Apple filed a motion accusing Samsung of purposefully deleting evidence it was responsible for keeping as part of the discovery process.

Consequently, Apple asked the Court to instruct the jury that Samsung had a duty to preserve relevant evidence but that they failed to meet that duty. Further, Apple asked the Court to instruct the jury that they may infer that the documents Samsung failed to produce would have been advantageous to Apple’s position. Ultimately, the Court agreed to instruct the jury that they may draw a negative inference from Samsung’s actions.

But Samsung’s wily legal team wasn’t going to just sit back and take all the heat themselves. They recently filed a motion of their own claiming that Apple had also destroyed relevant evidence, and in particular argued that they failed to produce a number of emails from late Apple co-founder Steve Jobs. More specifically, Samsung argued that Apple did not hand over emails from Jobs which referenced the patent trial from 2010 all the way up to his death in 2011. As a result, both Apple and Samsung will be in the same boat.

The jury instructions with regard to Samsung reads:

Samsung Electronics Company has failed to preserve evidence for Apple’s use in this litigation after Samsung Electronics Company’s duty to preserve arose. Whether this fact is important to you in reaching a verdict in this case is for you to decide.

And with respect to Apple, the jury instructions will read:

Apple has failed to preserve evidence for Samsung’s use in this litigation after Apple’s duty to preserve arose. Whether this fact is important to you in reaching a verdict in this case is for you to decide.

Florian Mueller, who first reported about the jury instructions, adds:

Apple is still in a very good position to win this case. But it would have been even easier for Apple to prevail if Judge Koh had upheld Magistrate Judge Grewal’s decisions. The issue of deleted emails would have helped Apple particularly in connection with the question of willful infringement. Now there will be two extremely soft instructions that cancel each other out.

The Wall Street Journal a few days ago reported on Apple’s plans, tentative at the moment of course, to release a set-top box capable of running live programming along with an assortment of other content.

The Journal has since expanded on its initial report and adds some more detail to color in some of the specifics of the device which may or may not make it to market.

Apple Inc.’s vision for a new device that can be used as a set-top box includes features designed to simplify accessing and viewing programming and erase the distinction between live and on-demand content, people briefed on Apple’s plans said.

The Cupertino, Calif.-based company proposes giving viewers the ability to start any show at any time through a digital-video recorder that would store TV shows on the Internet. Viewers even could start a show minutes after it has begun.

Some additional features Apple may include on this set-tob box include a user-interface akin to what we see on the iPad today along with room for social media features such as Twitter. Apple, the report notes, also is interesting in enabling iPhone and iPad users to access Television content from their devices.

Some of the features Apple has discussed are improvements, but not radical changes, to those already available. For instance, Apple wants viewers to be able to access all episodes of current seasons of TV shows, whereas existing video on demand services from cable operators generally often offer only a few episodes of a current season. Apple’s proposed device would also provide access to older seasons of shows, which are already available through Apple’s iTunes media store.

This all sounds great, but getting it to market is an entirely different matter completely. And while has reportedly approached various entertainment companies who own television content, this has to be deemed kosher to work along with many of the content deals already in place with various cable operators. That said, for Apple’s vision to come to fruition, there may have to be a whole slew of renegotiated contracts and the like. In short, this is a very tall order but as Tim Cook has said time and time again, Apple will continue to pull the strings and see where it takes them.

Indeed, one of the toughest challenges for Apple may be trying to convince cable operators to hop on board. They like their profits, and as opposed to the music industry of yore, they aren’t exactly looking for a savior. But at the same time, if Apple’s success with the iPhone has proven anything, it’s that getting into bed with Apple isn’t necessarily or always a bad thing.

You might have heard about the Curiosity Rover that touched down on Mars not too long ago. Well, it turns out that many of the folks on NASA’s team responsible for launching and otherwise being involved with the landing like themselves some Macs.

Here’s a photo from Mission Control where you’ll note the abundance of Macs.

macbook pros nasa mars rover

So what gives with all the Macs?

Well as it turns out, twelve scientists (or perhaps rocket scientists is more appropriate) from NASA’s Mars Curiosity Rover engineering team took part in an AMA on Reddit to answer user questions about the mission.

Naturally, the questions were wide ranging and the team did an admirale job of answering as many questions as best they could. Inevitably, there were a few questions pointed at the photos which showcase the NASA team’s penchant for all things Mac.

Specifically, when asked about the team’s preference for Macs or PCS, the team responded with,

In this room: 12 Mac, 3 PCs MB

After three weeks, the Samsung/Apple litigation has come to a close. Each side was given 25 hours to plead their case, and in addition to hundreds of exhibits, the jury will now be tasked with reaching a verdict following closing arguments which are set for next Tuesday.

All Things D notes:

Apple has sued Samsung for violating several patents as well as infringing on several protected design elements, known as “trade dress.” Samsung denies those charges and has countersued Apple for infringing on three feature patents as well as some core wireless patents.

The jury will have to unanimously agree that a particular patent is valid and infringed by a particular device in order for a finding of infringement. There are dozens of different phones and tablets at issue in the case, in addition to the many patents.

In a way, it will be sad to see this case end as it has provided Apple watchers with a unique glimpse into the inner workings of Apple. From Apple’s interest in a 7-inch iPad to all of those photos of iPhone and iPad prototypes, the trial has been an absolute goldmine for those who can’t get enough of all things Apple.

All told, Apple is suing Samsung for $2.5 billion on account of its alleged patent infringement. Towards the end of trial, however, Samsung brought up its own expert – accountant Michael Wagner – who explained that even if Samsung is infringing, damages should be in the $400-$500 million range since Apple’s damages expert did not take into account many of the expenses incurred by Samsung in selling its allegedly infringing devices, including things such as marketing costs.

Also discussed is how much Apple should pay Samsung should the jury find Apple guilty of infringement. One Apple expert said damages in that event would come out to $22.8 million while Samsung’s expert, not surprisingly, came up with a figure of $399 million. Notably though, some of the patents being wielded by Samsung have not been used by Samsung to collect royalties from any other company.

Yesterday we highlighted a report from an independent security researcher out of the UK who discovered a security flaw in Apple’s SMS app wherein a user can send a spoofed text message to someone else. In other words, a message sent from what appears to be a trusted friend could really have originated from a malicious source.

Engadget yesterday got in touch with Apple regarding the matter and elicited the following response.

Apple takes security very seriously. When using iMessage instead of SMS, addresses are verified which protects against these kinds of spoofing attacks. One of the limitations of SMS is that it allows messages to be sent with spoofed addresses to any phone, so we urge customers to be extremely careful if they’re directed to an unknown website or address over SMS.

So translation? Use iMessage folks!

In the wake of Apple tinkering with its retail formula in an effort to raise profits at the expense of Apple’s highly regarded customer service, Jim Darlymple of The Loop wrote a worthwhile entry arguing that Apple’s new VP of Retail – John Browett – better think twice before he attempts to turn Apple’s uber-profitable retail stores into Dixon clones.

What makes Browett’s decision somewhat worrisome is that it was enacted against the advice of several Apple retail veterans, all in the hopes of creating a leaner sales force. And this despite warnings from others inside the company that “reducing personnel ahead of the annual Back-to-School promotion and the September introduction of the iPhone 5 could create a customer service catastrophe.”

Darlymple writes that this is evidence of Browett seeking more to make a name for himself than in doing what’s best for Apple as a company.

It seems to me that Browett is trying to make Apple retail just like every other retail store on the planet. A few employees trying to satisfy an ever growing consumer base. That formula doesn’t work. It may save a few dollars in the short term and Browett may look like a hero on paper, but in reality the whole company would suffer the consequences.

With $100 billion or so in the bank, the last thing Browett needs to worry about is cost cutting measures to save a few pennies here and there. Instead he should be focused on how to best serve the surge of consumers that will take to the stores in the coming months to buy new Apple products.

Agreed.

Apple didn’t get to where it is today – one of the most profitable companies on the planet – by penny pinching. Steve Jobs once said – in regards to high iPod pricing – that sometimes “you get what you pay for.” In other words, the best customer experience isn’t achieved by creating as lean a sales force as possible. If it ain’t broke, don’t fix it.

When people talk about a company, they often talk about its company culture. Indeed, after the resignation and subsequent passing of Steve Jobs, part of the reason many weren’t worried about Apple’s future prospects was that Jobs had imbued a company culture into Apple wherein the user experience reigned supreme and no part of it was compromised.

Browett’s decision to go for profits at the expense of said customer experience might be indicative of a man who may be well-versed in retail operations, simply doesn’t get what Apple is truly all about.

I suppose time will tell whether or this was a one-time snafu or if Apple, perhaps, hired the wrong guy.

The iPads growing influence in the Medical realm has been well documented, but now comes a report highlighting how Apple’s popular tablet computer is also making an impact in the pharmaceutical realm.

According to a survey recently conducted by Manhattan Research, approximately 65% of polled physicians indicated that they had had an interaction with a pharmaceutical sales rep who made use of an iPad in his/her pitch. Now compare that to a similar survey conducted in 2011 which found that only 30% of polled physicians had interacted with an iPad-toting pharmaceutical sales rep.

According to Manhattan Research, iPads help pharma reps better interact with physicians too. Of those physicians surveyed who had interacted with pharma sales reps with iPads, 35 percent said they were more likely to request a sample and 29 percent said they were more likely to consider prescribing the drug.

“We’re seeing more positive signs this year that the use of iPads by reps is driving the desired engagement and behavior among physicians,” Monique Levy, Vice President of Research at Manhattan Research explained in a statement.

via Mobile Health News

A security researcher based out of the UK put up a blog post late this week publicizing a security flaw in Apple’s iPhone SMS app.

According to the post, put up by “pod2g”, Apple’s current version of its SMS app makes it easy for a malicious individual to send a text message from a spoofed address.

In the text payload, a section called UDH (User Data Header) is optional but defines lot of advanced features not all mobiles are compatible with. One of these options enables the user to change the reply address of the text. If the destination mobile is compatible with it, and if the receiver tries to answer to the text, he will not respond to the original number, but to the specified one.
Most carriers don’t check this part of the message, which means one can write whatever he wants in this section : a special number like 911, or the number of somebody else.

The result is that someone could send a seemingly benign text message that appears to originate from a trusted source but in reality contains spam of some sort or a link to a malicous website.

Why is it an issue ?

• pirates could send a message that seems to come from the bank of the receiver asking for some private information, or inviting them to go to a dedicated website. [Phishing]
• one could send a spoofed message to your device and use it as a false evidence.
• anything you can imagine that could be utilized to manipulate people, letting them trust somebody or some organization texted them.

Note though that the flaw does not apply to Apple’s iMessage protocol as it is delivered as data is and is not an SMS.

via Pod2G

Hot on the heels of a report from the WSJ claiming that Apple is in talks with cable operators regarding a set-top box capable of running live Television programming and more comes a new research report from Jeffries & Co. analyst Peter Misek who turns the spotlight back on the long rumored Apple HDTV.

Believe it or not, but Misek writes that the rumored iTV is already in full production.

Recent data out of Sharp, Hon Hai, and other specialty chemical and TV component suppliers support this. Also, JDSU noted that they have a new non-gaming customer for its gesture control modules. They indicated this is a new “living room” based customer. We believe Apple will leverage AT&T’s and Verizon’s content deals for the iTV.

That said, Misek belives Apple’s iTV will, in fact, hit store shelves sometime during the fourth quarter of 2012 with an ASP of $1250. At the same time, Misek qualifies his prediction by stating that the release date may be pushed back on account of other new product announcements, including the iPhone 5 and the rumored release of an iPad Mini along with a complete revamp of Apple’s iPod lineup.

We expect either the iPad Mini to launch in CQ4 with the iTV either launching in CQ4 or CQ1.

Microsoft’s Surface tablets, the initial success of Google’s Nexus 7, and Amazon’s upcoming product launches could be affecting Apple’s launch schedule. These represent stiff competition vs. a likely lack of viable competition for the iTV over the next year. […]

There is also the possibility that Apple chooses to launch both products before year end. The iTV would then be in time for the Christmas selling season, but that would mean Apple having three huge product launches in a short timeframe and leave little for CY13 outside of the typical iPhone and iPad refresh.

via MacRumors

Perhaps a strategic miscalculation on Samsung’s part, but it seems like the Korean-based electronics giant is very close to using up its 25-hour allotment of time that Judge Lucy Koh granted to both Apple and Samsung prior to the start of the case.

As Ina Fried of All Things D points out, this is the result of Samsung spending more time cross-examining Apple’s own witnesses than making their own case. What’s more, Judge Lucy Koh has made it expclicitly clear that she will not entertain any motions from Samsung seeking a time extension of any sort.

Koh said she would not entertain any motions from Samsung that it lacked time to present its case and entered her statement into the record, should the matter come up on appeal.

“Samsung made a strategic decision to spend more time to [cross-examine] than Apple used to present its affirmative case,” said Koh, who has grown increasingly frustrated with lawyers on both sides.

Samsung had to speed through its final few expert witnesses on Wednesday and, with precious few minutes of jury time left, has also chosen not to cross-examine many of Apple’s rebuttal witnesses.

Closing arguments are set for Tuesday.

via All Things D