MacRumors

Wireless carriers like AT&T and Verizon will not be able to continue the smartphone subsidy model that has driven widespread smartphone penetration to this point. AT&T CEO Randall Stephenson, speaking at an investor conference today, said the current model is not economically viable, reported CNET.

With more than 75 percent of mobile phone users owning smartphones -- and that number growing towards 90 percent -- Stephenson said carriers will "move into maintenance mode" and that "the model has to change" because carriers "can't afford to subsidize devices like that". Many higher-end smartphone power users also tend to upgrade their phones as often as possible, something that can become expensive for carriers subsidizing those purchases to the tune of hundreds of dollars per device.

Stephenson also acknowledged that breaking customers of their habit of upgrading to a new phone every 18 months to two years is not an easy task. But he said a business models focused on financing rather than providing a subsidy would be "transformative" for the industry. He said the company's new AT&T Next program, which offers no-money down and 0-percent financing, drives smartphone penetration in a way that is more sustainable over time.

"If you are a customer and you don't need to upgrade your device, you can get unlimited talk and text and access to the data network for $45 all-in," he said. "You can use your own device or finance it. I think this will be very powerful. It's where we see the market going."

As part of a larger strategy to move away from straight device subsidies, AT&T rolled out its AT&T Next smartphone and tablet upgrade program earlier this year -- following T-Mobile's lead -- to entice customers to pay for devices in full, spreading the payments out over several years with no down payment or upgrade fees.

This month, AT&T introduced a new "value plan" that gives customers a $15/month discount on smartphone plans when users bring an off-contract device, purchase a phone at full retail price, or use an AT&T Next financing plan. The new plans come after several price adjustments to AT&T Next plans as customers analyzed similar offerings from other carriers.

Stephenson noted that carriers have largely solved their data capacity issues because of LTE and can now focus on lower end customers, saying that AT&T will "go very aggressively in the prepaid market".

Apple has seen huge success with the iPhone, largely because of carrier strategies that saw its smartphones heavily subsidized while locking customers into two-year contracts. As demand in Western countries begins to peak, Apple executives have often spoken of the importance of growth in countries where purchasing phones for full-price, with prepaid voice and data plans, is more popular.

The U.S. Patent and Trademark Office today published a newly granted Apple patent describing a goggle-like video headset designed to allow users to view media while on the go but with a much larger view than on their mobile device's built-in display (via Patently Apple).

Apple's patent is a relatively straightforward one with a single independent claim outlining a headset that contains adjustable optical modules for lining up with the user's eyes, but the full description of Apple's ideas includes such topics as allowing displays for each eye to be individually focused to provide vision correction, as well as possibilities for 3-D viewing similar to Oculus Rift's virtual reality headset.

A goggle system for providing a personal media viewing experience to a user is provided. The goggle system may include an outer cover, a mid-frame, optical components for generating the media display, and a lens on which the generated media displayed is provided to the user. The goggle system, or head mounted display may have any suitable appearance. For example, the goggle system may resemble ski or motorcycle goggles. To enhance the user's comfort, the goggle system may include breathable components, including for example breathable foam that rests against the user's face, and may allow the user to move the display generation components for alignment with the user's eyes. In some embodiments, the goggle system may include data processing circuitry operative to adjust left and right images generated by the optical components to display 3-D media, or account for a user's eyesight limitations.

Apple goes on to describe how visual corrections could be made either by the user entering a prescription or by the headset automatically detecting the needed correction. Those corrections could then be stored by the headset and automatically applied when the user wearing the headset is identified.

Apple's patent was originally filed in May 2008 and is based on a provisional patent application filed in May 2007, but it has taken until now for the application to make its way through the review process to approval. This is also not the first time Apple has moved to patent concepts related to video headsets, with the company receiving a 2008 patent for a system in which laser light could be pumped from an external source into a lightweight goggle system to display images. As noted by Patently Apple, Apple has made a number of other moves over the years to expand on the possibilities for a video headset, but the company has yet to bring any such product to market.

Qualcomm has announced the launch of its Gimbal proximity beacons, which are designed to work similarly to Apple's own iBeacons. Like iBeacons, Qualcomm's proximity beacons serve as physical Bluetooth access points that interact with apps on iPhones and iPads over Bluetooth LE.

Qualcomm's overall Gimbal platform is billed as a "context aware" proximity platform allowing brands to deliver information to customers based on physical location, activity, time, and personal interests.

Gimbal helps increase the relevance of content delivered to end users' devices, filtering out the irrelevant and offering more personalized experiences, thereby allowing retailers, venues, content providers and developers to send personalized high-value content to enhance their users' mobile devices.

The Gimbal beacons, which support iOS out of the box with an accompanying SDK that can be built into apps, come in two different sizes that are accurate down to one foot both indoors and outdoors. The Series 10 beacons cost as little as $5, while the larger Series 20 beacons start at $10. Individual iBeacon-compatible beacons from other companies are more expensive, at approximately $100 for three.

Apple's iBeacons, first introduced earlier this year at the company's Worldwide Developers Conference, are already in use in a number of different locations.

Back in November, Shopkick teamed up with Macy's to debut the first retail-based iBeacons, allowing customers to find location-specific deals and recommendations within the app while visiting a participating Macy’s store.

iBeacons have also been installed in Apple retail stores, giving in-store notifications through the company's Apple Store app. Along with retail applications, one publishing startup is using the technology to deliver free magazines, and Major League Baseball also plans to incorporate iBeacons into stadiums next year.

With iOS support, Qualcomm's Gimbal proximity beacons will be indistinguishable from Apple's iBeacons to end users, giving merchants and retailers a suitable alternative to Apple's technology. Apple does have an edge, however, as iPhones and iPads can potentially be configured as both iBeacon receivers and transmitters, skirting the need for a separate piece of hardware.

Piper Jaffray analyst Gene Munster, who has regularly assessed Siri's accuracy in terms of correctly interpreting and answering queries, has issued the latest version of his Siri report card, noting that Siri has continued to improve under iOS 7, particularly in terms of being able to properly interpret questions being asked.

The primary improvement between Siri in iOS 6 and iOS 7 came from its performance in noisier areas, where Siri was able to translate better through a noisy environment (94% vs. 83% correct in Aug iOS 6). Based on our testing, iOS 7 Siri's net ability to answer questions (factors in questions not correctly understood) improved to 79% from 77% in August with iOS 6.

The improvements in Siri's understanding come alongside but separate from Apple's continued efforts to reduce its reliance on Google, as evidenced by Siri's shift to emphasize Bing, Wikipedia, and WolframAlpha results. In Munster's most recent testing, only 4 percent of Siri's answers relied on Google, compared to 17 percent in August testing and 27 percent in December 2012.

Munster also compares Siri to Google Now, finding that the two services are now essentially tied in effectiveness with a "C+" score after Siri held a substantial lead in the year-ago testing. In the latest testing, Google Now held small leads in content areas such as commerce and information, while Siri performed significantly better for operating system controls.

Less than a week after experiencing a significant improvement in shipping times for new online orders throughout the world, the iPhone 5s has seen its availability improve once again with models now shipping "within 24 hours" in nearly all of Apple's online stores for countries around the world. The GSM-compatible SIM-free iPhone has also improved to a shipping estimate of 3-5 business days.

Following the launch of the iPhone 5s, supplies were significantly constrained, especially for silver and gold models. Shipping estimates slipped to 7 to 10 days hours after the phone was released and then slipped further to two to three weeks for an extended period of time. The rapid improvement in availability indicates that Apple is quickly reaching supply-demand balance for the iPhone 5s three months after its debut.

According to reports, Apple has significantly ramped up its iPhone 5s production over the course of the last month while cutting back on iPhone 5c production, which has resulted in improved supplies in time for the Christmas holiday.

In-store supplies of the iPhone 5s are also reported to be nearing 100% availability, with all colors and capacities of the phone available for immediate pickup at many of Apple's retail locations across the United States.

Last week, Apple also released shipping deadlines to ensure customers receive gifts by December 24. According to the guidelines, the iPhone 5s must be ordered by midnight December 18 to arrive ahead of Christmas.

Apple has been awarded a patent by the U.S. Patent and Trademark Office (via AppleInsider) detailing a manufacturing technique applied to the production of curved touch sensors to be used in existing components such as displays, touch pads, and touch mice.

The patent, which was filed in November 2010, introduces itself by describing the problem with existing touch sensor panels, stating that they are sometimes difficult to produce because of their thinness, which leads to a risk of damaging panel components. The technology in the patent however, details a curved sensor benefiting from increased strength and enhanced viewing properties without warping or deformation to the surface during initial assembly.

By depositing and patterning thin film, for example, on substrate while in a flat state, and then annealing, for example, the thin film when the substrate is joined to a forming substrate, the substrate can be curved to a desired curvature. Further, thin film can receive the benefits of the annealing process, such as increased strength and conductivity and enhanced optical properties, without undesired warping or deformation to the substrate.

In detail, the patent states that while some current electronics appear to have curved displays, the devices in question suffer from a degraded touch sensitivity because of the distance between the cover glass and the actual drive and sense electrodes in the device due to current manufacturing techniques.

Meanwhile, Apple describes its manufacturing process as allowing the thickness of a curved touch sensor panel to remain constant, with touch sensitivity remaining high since the distance between the cover glass and thin film is akin to flat touch sensor panels that have a high amount of touch sensitivity.

It is unknown exactly how or even whether Apple plans to utilize this technology in its products, but competitors such as Samsung and LG have already touted curved displays as key features in their products such as the Galaxy Round and the G Flex, respectively.

Apple is also said to be testing larger-screen iPhone prototypes with curved displays, as well as enhanced touch sensors for later models. Earlier this year, an Apple patent application describing a flexible wraparound display for devices such as the iPhone was published, further stoking rumors of such a feature making its way into the next iPhone.

Apple today released its annual "12 Days of Gifts" app for iOS devices, setting the stage for the actual giveaway of free content from the company's various digital stores from December 26 through January 6. Apple has offered the giveaway for several years in Europe, Canada, and several other countries, and in 2013 U.S. customers will have access for the first time.

From 26 December – 6 January, you can download a gift each day—songs, apps, books, movies, and more—with the 12 Days of Gifts app. Each day's gift will only be available for 24 hours, so download the free app to make sure you don’t miss out. Please note: Not all content is available in all countries.

12 Days of Gifts is a universal app available for free in the App Store. [Direct Link]

Over the past several years, Apple has removed, denied, or otherwise prevented a number of Bitcoin-related apps from being available to users on the App Store. Most recently, the company required the developers behind Gliph -- a secure messaging app that also allowed users to transfer bitcoin from one Gliph user to another -- to remove the bitcoin sending feature from its app.

The company has told a number of developers behind Bitcoin-related apps that their apps contain content -- or facilitate, enable, or encourage an activity -- "that is not legal in all the locations in which the app is available, which is not in compliance with the App Store Review Guidelines."

Bitcoin is a virtual currency, not issued by any government, that can be transferred electronically from one wallet -- basically a special computer file -- to another. The value of the currency is incredibly volatile, with its USD exchange rate going from under $400 to more than $1200 in the past month. At one point, the price of a single bitcoin moved from $1155 to $576 in a few hours. Bitcoins are currently available for around $900 on the Mt. Gox bitcoin exchange.

The concept of a private, virtual currency is a foreign one for governments that can have difficulty staying in the same decade as quickly emerging technologies. Both domestic and international governments are struggling with the currency and how to regulate it. China has banned financial institutions from handling bitcoin transactions, though person-to-person transactions are still allowed.

The U.S. Government has taken a slightly more positive view of bitcoin, however. The U.S. Department of Justice said in a Senate hearing that bitcoins can be "legal means of exchange" and that bitcoin is not "in and of [itself], illegal".

Bank of America Merrill Lynch analysts said in a research report that bitcoin could eventually become a "major means of payment for commerce" and a "serious competitor to traditional money transfer providers". However, federal anti-money laundering and terrorism financing statutes would appear to conflict with the fast-paced development that has pushed bitcoin growth thus far.

While bitcoin use and ownership is not de jure illegal, it nonetheless exists in a legal gray area that could potentially affect users at some point. Gliph, the app mentioned earlier, did not even transfer bitcoin directly. Instead, it used API calls to attach a bitcoin wallet from a third-party company to the app. This allowed Gliph users to transfer bitcoin to one another, similar to how an app developer might use PayPal's API to facilitate checkout and credit card payments in their apps. However, this is the functionality that Apple had the developers remove before it would allow Gliph back on the App Store.

For the most part, Apple has declined to explain how a bitcoin-transferring or -trading app could be approved, nor in what countries the bitcoin functionality might not be allowed. It merely refers to section 22.1 of the App Store review guidelines which states that it is the "developer's obligation to understand and conform to all local laws". The company appears to be taking a wait-and-see approach, both protecting itself and -- perhaps more importantly to the company -- protecting its users. An Apple spokesperson did not respond to an emailed request for comment.

The Gliph blog has one possible theory for Apple's apparent disinclination towards Bitcoin apps:

Among other possible reasons, we wonder if Apple simply doesn’t want to police useful Bitcoin apps in the App Store because they perceive the legal ambiguity of the currency as more trouble than it is worth. Bitcoin is still in an early-adopter phase and probably the majority of Apple’s customers are unaware the currency exists and not looking for these types of apps anyway. Better to avoid this type of software for now, and take the option to change their mind in the future.

Earlier this year, Apple removed the app for the bitcoin buying and trading platform Coinbase from its store. The story is similar for Blockchain.info, Bitpak, and Bitcoin Express -- all Bitcoin-related apps that were either removed or rejected from the App Store. The Gliph blog has more details on the various apps. Most of them received rejection language similar to section 22.1.

There are still Bitcoin-related apps on the App Store, however most do not provide the ability to purchase, sell or transfer bitcoins. As a result, some exchanges -- including Mt. Gox, one of the largest -- have instead chosen to develop mobile websites for wallet-holders rather than dedicated apps. Google has taken a more hands-off approach, largely allowing Bitcoin apps to remain on its Google Play store.

As bitcoin becomes more widely accepted -- and regulated -- by Governments and large financial institutions alike Apple may become more accepting, but in the meantime, the company seems to have made its position clear.

Gliph is a free download on the App Store, however its bitcoin functionality is limited to viewing bitcoin wallets, with no transfer capabilities. Its secure messaging and cloaked email capabilities remain intact. [Direct Link]

Apple's former SVP of iOS software Scott Forstall has largely remained out of the spotlight since officially leaving Apple at the beginning of the year, but Amir Efrati from new technology site The Information has some news on what Forstall been up to.

According to Efrati, as relayed by Business Insider, Forstall has spent his time advising startups and becoming involved in philanthropical causes focused on education, poverty, and human rights. He also reportedly spent time traveling to various countries like Italy and South Africa, but it is unclear what his next move might entail.

As for what's next, Efrati doesn't have any news, but he says VC firms like Kleiner Perkins and Andreessen Horowitz have stayed in touch, but Apple employees think Forstall's next move will be starting his own company.

Scott Forstall was a key player at Apple until late 2012, when he was ousted following Apple's iOS 6 maps debacle. Forstall originally joined Apple from Steve Jobs' company NeXT, and became famous for designing the Mac's Aqua user interface and later for leading the development of iOS and introducing many of its skeuomorphic elements.

Forstall officially resigned as the SVP of iOS software in October of 2012, reportedly staying on as an advisor to Tim Cook until 2013. Following Forstall's departure, Jony Ive, Bobs Mansfield, Eddy Cue, and Craig Federighi took on additional responsibilities to make up for the loss of Forstall.

Jony Ive now leads Apple's Human Interface teams, while Eddy Cue has taken over Siri and Maps and Craig Federighi leads the both iOS and OS X teams. In May, Tim Cook called the management shakeup "an incredible change" that has gone a long way towards increasing collaboration.

Apple has recently expanded iTunes Match availability to several Nordic countries, according to both reports on Twitter and tip from a MacRumors reader.

iTunes users in Finland, Denmark, Norway, and Sweden now have access to the service, which has a yearly price of 249 kr in Denmark, Sweden, and Norway and €24.99 in Finland. In comparison, iTunes Match is $24.99 in the United States and £21.99 in the U.K.

First introduced in late 2011, iTunes Match allows iTunes users to match their existing iTunes libraries with high quality versions of songs from Apple's iCloud. After matching, content is available in iCloud and can be accessed from any device.

Finland, Denmark, Norway, and Sweden have also gained access to purchased music in iTunes in the Cloud, allowing previously acquired music to be downloaded on all devices.

With the introduction of iTunes Match and iTunes in the Cloud for music to additional countries today, only a few countries where Apple sells music are lacking iTunes Match or iTunes in the Cloud functionality. In Romania, Apple sells music but does not offer iTunes in the Cloud or iTunes Match, while customers in Japan can purchase music and download it via iTunes in the Cloud but cannot access iTunes Match.

All other countries where Apple sells music via iTunes now have access to both iTunes in the Cloud for music and iTunes Match. Subscribers in countries where iTunes Match is available can sign up for the service within iTunes. [Direct Link]

Update: Apple has also expanded iTunes in the Cloud support in Bulgaria and Portugal to include movies.