MacRumors

Apple marketing chief Phil Schiller is accompanying CEO Tim Cook on his trip to China, and the Shanghai Evening News has published an interview [Google translation] with Schiller in which he addresses recent rumors of a cheaper iPhone. The report was first brought to our attention by Macerkopf.de, but The Next Web has since obtained a better translation and confirmed with Apple that the report did indeed stem from an official interview with Schiller.

Interviewer Huang Yinlong spoke to Schiller about Apple’s products in China who said that “every product that Apple creates, we consider using only the best technology available. This includes the production pipeline, the Retina display, the unibody design, to provide the best product to the market.”

“At first, non-smartphones were popular in the Chinese market, now cheap smartphones are more popular and non-smartphones are out,” Schiller added later. “Despite the popularity of cheap smartphones, this will never be the future of Apple’s products. In fact, although Apple’s market share of smartphones is just about 20%, we own the 75% of the profit.”

Schiller's comments of course do not specifically rule out the possibility of Apple launching a lower-cost iPhone, but he does make clear that Apple will not sacrifice quality in order to garner a greater unit share of the market. The philosophy should not be a surprise to anyone familiar with Apple, but it does provide reassurance that Apple will fill a very specific niche if it does pursue a lower-cost iPhone, opting to pursue its own course rather than being letting competitors define where it will play in the market.

A similar approach was revealed with the iPad mini late last year, which debuted at a base price of $329, considerably higher than numerous competing products in the range of $199 or lower, and even above the $249-299 expectations of many observers. But for Apple that $329 opens up an entirely new segment of the market below the $499 full-size iPad and even the $399 iPad 2.

It in its report earlier this week echoing The Wall Street Journal's claims of a cheaper iPhone, Bloomberg claimed that the cheaper iPhone could sell for $99 or $149 (presumably on a two-year contract), which would be just $50-$100 below the iPhone 5 and in line with the iPhone 4S currently offered alongside the iPhone 5. But even a $50-$100 discount on Apple's latest-generation hardware could attract new customers and especially bring down upfront costs in countries where carrier subsidies are not offered.

Apple's 27-inch iMac continues to be in short supply, with Apple quoting 3-4 week shipping estimates for new online orders, compared to shorter but still substantial 7-10 day estimates for the smaller 21.5-inch models. Even before launch, the new iMac was projected to be in short supply into 2013, due in large part to issues with Apple's new display assembly process that includes laminating the display directly to the machine's cover glass.

Digitimes now reports that the display lamination issue is still a problem for Apple supplier LG Display, with the larger 27-inch panels seeing lower yields than the 21.5 inch displays.

LG Display has reportedly been facing full lamination issues while producing the panels, slowing down shipments of the 27-inch device to 100,000 units a month, added the sources.

LG Display, however, has secured strong yields for Apple's new 21.5-inch model, which currently has reached monthly shipments of 300,000-400,000 units, noted the sources.

The report does claim, however, that LG is moving toward better yields of the larger displays, with greater availability set to come next month. The improved yields should reduce what appears to be the main bottleneck in iMac production, thus leading to greater availability and shorter shipping estimates for new orders.

Apple's redesigned iMac is considerably thinner than its predecessor and contains 40% less volume, changes that have been enabled by a number of technological advancements such as the lamination to create thinner and more vibrant displays and the use of advanced welding techniques. Those advancements have not come without challenges, however, as seen with the displays holding back production on the larger iMac models.

As part of an extensive look at HP and whether CEO Meg Whitman will be able to turn the legendary computer company around, Bloomberg Businessweek shares an anecdote revealing how Steve Jobs reached out to ousted HP CEO Mark Hurd in 2010 both to provide support and to offer assistance with repairing Hurd's relationship with HP in an unsuccessful effort to prevent the company from entering a tailspin.

Hurd's ouster at HP has been compared to Steve Jobs' departure from Apple in 1985, although Hurd was forced out over claims of sexual harassment and improper expense reports.

Three days after he’d resigned as CEO under pressure from the company’s board of directors, Hurd received an e-mail from Steve Jobs. The Apple founder wanted to know if Hurd needed someone to talk to. [...]

Hurd met Jobs at his home in Palo Alto, according to people who know both men but did not wish to be identified, compromising a personal confidence. The pair spent more than two hours together, Jobs taking Hurd on his customary walk around the tree-lined neighborhood. At numerous points during their conversation, Jobs pleaded with Hurd to do whatever it took to set things right with the board so that Hurd could return. Jobs even offered to write a letter to HP’s directors and to call them up one by one.

Jobs argued that a strong HP was vital to a healthy Silicon Valley, and Jobs was worried that the company would falter following the departure of Hurd. Jobs was unsuccessful in his efforts, however, and although he would only live for another year, he did witness the fall of HP under outsider Léo Apotheker.

Jobs had quietly served as a mentor to a number of other tech industry figures, such as Google founders Sergey Brin and Larry Page and Salesforce founder Marc Benioff. Jobs also served as mentor to Facebook founder Mark Zuckerberg, offering advice on a broad array of topics.

Seeking to enhance its profile among music buyers, Amazon today announced the launch of AutoRip, a new service that offers customers who purchase physical CDs through Amazon free digital copies of their purchases through Amazon Cloud Player. The service is also retroactive, meaning that customers who bought any of the thousands of eligible CDs through Amazon since 1998 will automatically find digital versions of their past purchases in Cloud Player.

When customers purchase AutoRip CDs, the MP3 versions are automatically added to their Cloud Player libraries, where they are available, free of charge, for immediate playback or download – no more waiting for the CD to arrive. Additionally, customers who have purchased AutoRip CDs at any time since Amazon first opened its Music Store in 1998 will find MP3 versions of those albums in their Cloud Player libraries – also automatically and for free. More than 50,000 albums, including titles from every major record label, are available for AutoRip, and more titles are added all the time – customers can just look for the AutoRip logo.

AutoRip tracks are encoded as 256 Kbps MP3 files and are playable on a wide variety of devices including the iPhone and iPod touch, and can also be accessed through any web browser. AutoRip tracks do not count toward users' storage limits for the Cloud Player service.

Amazon has been working for years to eat into Apple's dominant share of the digital music market, offering discounted prices and matching or exceeding Apple's features such as iTunes Match with its own offerings. With the new AutoRip service, Amazon clearly hopes to attract many longtime customers who have purchased physical CDs from the company by offering free digital versions to introduce them to Cloud Player.

As speculated following his arrival in China earlier this week, Apple CEO Tim Cook has met with representatives of China Mobile, the world's largest carrier. Reuters notes that the two sides discussed "cooperation", but no additional information on the status of long-running negotiations over the iPhone have been revealed.

"In the morning, Apple's CEO Tim Cook visited China Mobile's headquarters. China Mobile's Chairman Xi Guohua and Tim Cook discussed matters of cooperation," said Li Jun, a China Mobile spokesman, in an emailed statement. [...]

Talks between Apple and China Mobile have been going on for years and are stuck on revenue sharing terms, analysts said, so it is tough to say if this meeting would break new ground.

Cook also sat down with Sina Technology for an exclusive interview [Google translation] in which he touched on a number of topics. Notably, Cook shared that although this was his second visit to China as CEO of Apple, he has visited China numerous times since 1996 and he has observed tremendous changes over that time.

Cook also highlighted Apple's efforts to raise its profile in China, reiterating plans to grow its retail presence from the current 11 stores in Greater China to at least 25 locations. Apple is also working to speed up the approval process for Apple products in China, moves which would allow product launches in China to occur closer to the first waves that generally include the United States and perhaps 5-10 other countries.

As he has in several other settings, Cook skirted discussion of Apple's plans for the television market, noting that he uses and loves the current Apple TV set-top box but that the market does not yet offer similar potential to the smartphone market. As he usually does when confronted with questions about television, Cook shared only that Apple remains very interested in the market and acknowledged that he can not discuss any future plans for the company.

Apple today announced on its Developer Portal that screenshots added to app descriptions will be locked in place once an app has been approved.

Beginning January 9, app screenshots will be locked in iTunes Connect once your app has been approved. New screenshots may be uploaded when you submit a binary for an update to an existing app or a new app.

This small but important update shuts down a widely used scam tactic, where developers would upload game screenshots to get an app approved by Apple and then switch them out with screenshots from another popular app.

The scam tricked people into buying fake apps with screenshots ripped from another, more popular game, or a game that has not been ported to iOS at all.

For example, in one instance, an unofficial Pokemon Yellow app was uploaded to the App Store. The app snuck by Apple using an unobtrusive set of screenshots, and then switched them out with photos from the Nintendo game, which thousands of people then purchased.

Several apps have slipped past Apple using this method, including several Minecraft clones that simply use Minecraft screenshots to promote an entirely different game. For example in this video from Panic Blog, a Minecraft clone named "Mooncraft" is demonstrated. The app, presumably, used different screenshots to get past Apple reviewers, and then later changed the game information.

While Apple pulls these apps from the App Store quickly, it is rarely able to do so before hundreds of people lose money. Apple has refunded the purchase price of scam apps in the past, however.

As noted by 9to5Mac, Apple today revamped its Thunderbolt cable lineup, dropping the price of the existing 2-meter cable from $49 to $39 and adding a new 0.5-meter cable priced at $29.

Thunderbolt cables remain relatively expensive due to the electronics included inside the cables to manage the multiple protocols supported by the standard. The complexity and expense has both slowed deployment of Thunderbolt peripherals and limited support mostly to high-end devices capable of absorbing the high cost premium.

Thunderbolt cables have so far been limited to traditional copper cabling, but vendors are just beginning production on optical cables for the standard. The optical cables will allow for much longer cable lengths, but will not be able to provide power to peripherals as copper cables can.

Water-resistant nanocoating has been around for some time now, but Santa Ana-based company Liquipel has debuted a more effective version, Liquipel 2.0, which it says is up to 100 times more effective than the watersafe nanocoating it first introduced at CES 2012.

Liquipel's product is designed to protect electronic devices from water damage, adding a vapor-applied water resistant coating that does not compromise the performance of the device.

According to Liquipel's Managing Director Sam Winkler, who spoke to Engadget, a device that is treated with the new version of Liquipel is able to achieve a water resistance rating of IPX7, which means the device can be submerged in a meter of water for 30 minutes.

Though Liquipel did not previously offer a warranty for treated electronics and some users had experienced issues with devices treated with original Liquipel formula not surviving liquid exposure, the company announced its Liquipel Performance Guarantee at CES. The new warranty, which currently covers only U.S. customers but should be extended to other countries in the future, offers protection from damage due to accidental liquid exposure on Liquipel-treated devices.

The coverage excludes intentional submerging of devices in liquid. However, everyday life events that can cause liquid damage will be covered, such as: rain, splashing, sweat, dropping in the sink or toilet and spilled drinks.

Liquipel's nanocoating operation has also gone portable with its new "Liquipods," 4x4 foot boxes that can be leased by shops who want to offer the Liquipel treatment.

TechCrunch reports that Liquipel is also opening its own retail locations, beginning with an inaugural store at the West Edmonton Mall in Canada this February.

Liquipel currently offers an online service, where customers can ship devices to be professionally coated by Liquipel itself, with prices starting at $59.

Just over a year ago, Apple acquired Israeli flash memory firm Anobit, and now that Anobit founder and CEO Ariel Maislos has left the company to start his next venture he has been able to share some details on his experiences with Apple. ZDNet covers an interview with Maislos at a recent meeting of the Israel Semiconductor Club, an event where Maislos shared details about how the acquisition came about and how Apple's culture compares to that of Intel, another company Anobit had worked closely with.

On the acquisition front, Maislos noted that Anobit wasn't looking for a particular exit for the venture but that an existing relationship with Apple developed to the point where an acquisition made sense for both sides.

"We had already had a close working relationship with Apple," Maislos revealed. "When you are working in the flash memory industry, it's kind of hard not to come across Apple at some point, as a partner or a customer – and they were a very big customer. We developed a very good relationship with them, and a mutual appreciation developed between both companies."

Maislos contrasts the culture and expectations at Apple with those of Intel, which had previously invested $32 million in Anobit during an earlier financing round, noting that Apple's return from the brink of bankruptcy in the late 1990s has instilled expectations of excellence that simply don't exist at Intel.

While Intel engineers are given assignments and are rewarded for ingenuity and creativity, he said, it's a given at Apple that engineers will be at the top of their game. "At Apple, you have to run ahead just to stay in place, and there are very high expectations of everyone. Apple expects everything you do to be amazing.

"That is not the case at Intel, where no one expects you to be 'amazing'," said Maislos, although Intel does reward those who give their "A+ game".

Maislos went on to note that Apple is extremely focused on its goals, demanding much more personal excellence than Intel or perhaps any other tech company.

Maislos is of course not a neutral observer, given the close relationship he has had with Apple and the exit it provided for Anobit's founders, but his comments do provide a small glimpse at how an experienced outsider transitioning from partner to employee views Apple's culture.

Following up on yesterday's report about T-Mobile USA already having 1.9 million iPhones operating on its network as it moves toward a launch of official sales later this year, Reuters reports that the carrier should begin selling the device within the next 3-4 months. T-Mobile is planning a similar timeframe for its move to end device subsidies in favor of installment plans and lower monthly plan costs.

"They're all, I would call them, in three to four months as opposed to six to nine months, [T-Mobile USA CEO John] Legere told Reuters in an interview at the Consumer Electronics Show in Las Vegas.

T-Mobile is also remaining aggressive on the acquisition and partnership front, with Legere noting that the carrier is looking to close its pending acquisition of MetroPCS in the second quarter of this year and is exploring deals with satellite TV provider Dish Network and prepaid carrier Cricket's parent company Leap Wireless.

As for T-Mobile's plans to end subsidies, it may not be the only major U.S. carrier to make the shift, as The Wall Street Journal reports that both AT&T and Verizon will be watching how things play out. Both carriers do, however, acknowledge that customers are so conditioned to low upfront device costs that it may prove a significant hurdle to overcome.

Walmart and Straight Talk Wireless are now carrying the iPhone 5, offering a $45 unlimited talk, text and data plan with no contract. It was previously reported by That's It Guys. Straight Talk is a subsidiary of TracFone, and its iPhone customers will use AT&T's network. There is no indication of whether the phones will support AT&T's LTE network or not.

Like other prepaid plans such as Virgin Mobile, users must pay full price for their iPhones without having them subsidized by the carrier. Unlike Virgin Mobile, Walmart is offering holders of the Walmart credit card a no-interest fixed payment plan for $25/month. This allows customers to have a unlimited talk, text and data plan for a total of $70/month before taxes and fees.

Walmart and Straight Talk Wireless, America’s largest and top rated no-contract cell phone provider, today put the power back in the hands of customers with an industry game changing offer. Starting on January 11, 2013 in more than 2,000 Walmart stores and online at Walmart.com, customers now have access to the iPhone 5 and iPhone 4 on Straight Talk’s $45 no contract unlimited talk, text and data plan. To make this offer even more affordable, Walmart will be offering customers who purchase the phone in the store, a no interest fixed-monthly payments special financing offer for only $25 a month with a Walmart Credit Card.

The Straight Talk wireless no contract plan, exclusive to Walmart, saves consumers on average $950 a year when they switch from conventional contract plans with similar unlimited plans. To learn more about how Straight Talk Wireless saves consumers $950 a year, please visit: www.straighttalk.com.

The iPhone 5 is available in black or white for $649 for the 16GB model only, and the iPhone 4 is available in black or white for $449 for the 8GB model.

A less expensive iPhone is in the works and could go on sale as soon as this year, reports the Wall Street Journal. Digitimes reported something similar earlier today.

While Apple has explored such a device for years, the plan has been progressing and a less expensive version of the flagship device could launch as soon as later this year, one of the people said.

The cheaper phone could resemble the standard iPhone, with a different, less-expensive body, one of the people said. One possibility Apple has considered is lowering the cost of the device by using a different shell made of polycarbonate plastic. Many other parts could remain the same or be recycled from older iPhone models.

The WSJ reported that Apple was working on a cheaper, smaller iPhone two years ago, which the paper does note. Of course, Apple already does offer cheaper models than the flagship iPhone -- currently the iPhone 4 and the iPhone 4S.

The device could be aimed at emerging markets like India where postpaid plans are scarce, and users typically pay in full for their phones up front.

Update: Bloomberg echoes the WSJ, saying Apple "plans to sell a smaller, cheaper version of the iPhone as soon as this year" and the device will be aimed at customers in developing countries. Bloomberg says that the device could sell for $99 or $149.