MacRumors

Digital advocacy organization Public Knowledge has accused AT&T of violating FCC rules on net neutrality with its new policy regarding the use of FaceTime over Cellular. AT&T announced late last week that it will only allow users on its new Mobile Share data plans to use the new FaceTime over Cellular service in iOS 6.

A senior staff lawyer for Public Knowledge told the New York Times that it felt AT&T was violating FCC rules that service providers not "block applications that compete with the provider's voice or video telephony services." John Bergmayer, lawyer for the organization, noted that "there is no technical reason why one data plan should be able to access FaceTime and another not."

The same argument could be made for tethering the iPhone to a laptop -- however, it isn't clear what AT&T service Public Knowledge feels FaceTime is competing with. The rule in question is designed to prevent ISP's from blocking things like VoIP apps or Netflix that compete with their own products.

An AT&T spokesperson issued the following statement about the allegations:

FaceTime is available to all of our customers today over Wi-Fi, and we’re now expanding its availability even further as an added benefit of our new Mobile Share data plans.

The FCC had no comment about the matter, and iPhone owners will not be affected by the policy until FaceTime over Cellular is enabled in iOS 6 later this year.

Following up on last week's photos of iPad mini and next-generation iPhone parts including Apple's new, smaller dock connector and the bottom-mounted headphone jack, parts and repair firm iResQ has taken the iPhone part and placed it in a rear shell obtained from a separate source.

The two parts fit together extremely well, with screw holes and components lining up perfectly. While the fit is not conclusive evidence of the legitimacy of these parts, it does provide additional confidence that they are intended to be used together. The photos also provide a better idea of what the next iPhone will look like when viewed from the bottom, with the significantly smaller dock connector making room for the headphone jack and a larger speaker grille along the bottom edge of the device.

A number of parts claimed to be for the next-generation iPhone have already leaked, giving a good idea of what the device with its taller 4-inch display will look like. One of the key parts observers have been waiting for is the device's logic board, and while photos of one did leak earlier this month, most of the details were obscured by shielding on the part.

Apple is expected to introduce the next-generation iPhone on September 12, with the "iPad mini" potentially seeing an introduction on the same date, although some sources have speculated that Apple will wait to introduce the smaller iPad at a later date.

With Apple opening a pair of new Canadian retail stores this past weekend in Halifax, Nova Scotia and Coquitlam, British Columbia, The Loop shares some fresh data on the company's retail chain performance.

Following the two grand openings this weekend, Apple now has 375 stores worldwide, and Apple notes that those stores have seen nearly 300 million visitors so far this year, or roughly 3500 visitors per store per day. Those numbers obviously vary significantly from store-to-store and day-to-day, but the company clearly continues to attract both new and existing customers to test drive Apple's products, make purchases, and seek support.

While meeting with Apple, I was able to get a few details about how the retail operation is going overall.

According to Apple, the company has seen almost 300 million worldwide visitors so far in 2012. To give you some type of comparison, by July 2011, the population of the United States was estimated to be 311 million people.

On the support side, Apple now reports that the company's retail store Genius Bars are now serving 50,000 users per day, or about 130 per store per day.

Apple has been working hard to meet surging demand for its retail stores, opening new stores on a regular basis and expanding or replacing some of its smaller outdated locations. The company has also been looking for ways to increase Genius Bar availability at its existing stores, increasing multitasking demands on its staff several years ago and even mocking up redesigned Genius Bars that could serve more customers at a time.

Update: The Loop has clarified that the store visitor numbers refer to fiscal 2012 rather than calendar 2012, meaning that the company is seeing closer to 2500 visitors per day at its stores on average.

Late last week, jailbreak hacker pod2g disclosed an issue with the way Apple's iOS handles optional headers in SMS messages, a vulnerability that could allow users to be targeted by SMS spoofing that makes messages appear to originate from people other than the actual senders. While SMS spoofing is certainly not new and can be performed through various services, this specific issue in the handling of reply-to addresses could be addressed fairly easily by Apple.

Engadget reported over the weekend that it had obtained a statement from Apple on the issue, with Apple simply touting its iMessage service as a more secure alternative to SMS.

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.

iMessage is of course an Apple-specific messaging service, and is thus only compatible with iOS devices running iOS 5 or later and Macs running OS X Mountain Lion. Consequently, it is generally not possible for users to entirely replace their SMS usage with iMessage. Apple has also not committed to making any changes in how it handles reply-to addresses for SMS, so it is unknown whether they will be directly addressing the issue.

Milestones for Apple's stock are falling rapidly in recent days, with another strong performance today pushing Apple past Microsoft for the title of most valuable publicly-trade stock ever, a distinction Microsoft has held since December 1999.

Microsoft's market capitalization peaked on December 30, 1999, reaching an intraday high of $119.94 per share. With Microsoft having documented 5,160,024,593 outstanding shares as of October 31, 1999 in its quarterly earnings report, the company would have had a market capitalization of $618.89 billion on December 30.

Apple's most recent quarterly filing listed 937,406,000 outstanding shares as of July 13, 2012, and with the company's stock price hitting $660.73 today, its market capitalization reached $619.37 billion.

While Apple now holds the all-time market capitalization record in terms of raw numbers, accounting for inflation would still allow Microsoft to retain the title by a fairly wide margin. In inflation-adjusted terms, Microsoft's $618.89 market capitalization in December 1999 would be equivalent to roughly $842.5 billion in today's dollars.

Apple's market capitalization title is also subject to several other caveats, perhaps most notably being PetroChina's trillion dollar market cap it achieved when it launched for trading on the Shanghai stock exchange in 2007. That figure comes with its own qualifications, however, as PetroChina is a government-dominated firm that saw only 2% of its shares being made available on the Shanghai exchange. Trading in PetroChina shares on the Hong Kong exchange and American depositary receipts on the New York Stock Exchange never supported the trillion dollar valuation the company received on the Shanghai exchange.

Update: Apple's stock closed at $665.15 today, giving the company a market capitalization of $623.5 billion.

With Apple and Samsung having concluded their presentations for the jury in the high-profile U.S. court case over patent and design issues, Bloomberg reports that Apple CEO Tim Cook and Samsung CEO Kwon Oh Hyun will talk one last time in an effort to settle or at least narrow their differences before jury deliberations begin as soon as tomorrow.

The companies’ lawyers will report to U.S. District Judge Lucy Koh in federal court in San Jose, California, on the outcome of today’s telephone discussion between Apple’s Tim Cook and Samsung’s Kwon Oh Hyun, according to the person, who asked not to be identified because the talks are private. [...]

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.

Senior executives of the two companies met several times leading up to the trial and were unable to reach an agreement, but Samsung is now operating under new CEO Kwon, who was elevated to the position in early June as part of an executive reshuffling.

Apple estimates that it should be owed roughly $2.5 billion in damages based on sales of Samsung devices it claims infringed upon Apple's patents and trade dress, while Samsung claims that Apple owes approximately $400 million in licensing fees for 3G-related patents based on a royalty rate of 2.4% per unit sold. Apple has claimed that the licensing fees for the standards-essential patents should be significantly lower.

UBreakiFix has received these photos of the full front panel of the next generation iPhone from one of their distributors.

The parts don't appear to be particularly revealing. We've seen similar components before with the exception of a close look at the new iPhone's LCD screen.

The new screen is said to have increased to 4" in diagonal (up from 3.5") while preserving the same pixel density as the current iPhone design. This would provide apps with additional screen space to fill. UBreakiFix also provided a zoomed in photo of the top area with serial numbers and LCD connector.

The new iPhone is expected to be launched on September 12th.

Photos of parts for the next-generation iPhone and the rumored iPad mini continue to leak, with repair firm iResQ posting new photos of what are said to be the dock connector/headphone jack flex cable parts for both devices. Each of the parts is available in both black and white, indicating that Apple will be coordinating the dock with the bodies of the devices.

Like the photo that leaked earlier this week, the iPad mini parts curiously show the headphone jack at the bottom of the device. That placement is inconsistent with case leaks and other claims made thus far, which have indicated that the jack would be at the top of the device as on the full-size iPad.

These new iPad mini part photos also reveal a newer part number than seen on the previous part leak. These new photos appear to carry a part number of 821-1516, while the photo leaked early this week carried a part number of 821-1476. These iPad mini parts are the first interior components of the device to appear, and while they have not been confirmed to be for the device in question they are consistent with Apple parts and are too large to fit inside an iPhone.

A second photo also offers a close-up interior look at the dock connector port, showing where the eight gold pins on the claimed dock cable and accessories will make contact. The number of pins for the dock connector has been in dispute, with some suggesting that the metal surrounding the pins on the connector could act as a ninth pin.

Update: MacRumors has received more info from iResQ about the new dock connector port. The site tells us that "there is just one set of eight contacts inside of the port" with "none on the top side".

AT&T will not charge customers for using the FaceTime over Cellular feature in iOS 6, but will require users to be on one of its new Mobile Share data plans. Last month, AT&T CEO Randall Stephenson declined to talk about how the company would handle the new FaceTime feature, saying "it's too early to talk about pricing."

AT&T's new Mobile Share data plans will launch August 23rd, allowing users to share their monthly data allotment across multiple devices. The plans are structured with two basic components: a monthly cost for a data allotment and a per-device charge that varies from $10 to $45 depending on the type of device and the data plan selected. All of the plans include unlimited talk and text.

Here's the statement from AT&T:

AT&T will offer FaceTime over Cellular as an added benefit of our new Mobile Share data plans, which were created to meet customers’ growing data needs at a great value. With Mobile Share, the more data you use, the more you save. FaceTime will continue to be available over Wi-Fi for all our customers.

While AT&T is clearly encouraging customers to switch to the new Mobile Share plans, users can keep their existing tiered single-phone or grandfathered unlimited data plans -- though without the FaceTime over Cellular feature.

In the U.S., Sprint has said it will not charge for FaceTime over Cellular. Verizon hasn't specified what it will require of customers to use the feature.

According to Polygon and veteran video game developer Brian Fargo, video game streaming company OnLive has fired its entire staff and the company will cease to exist as of later today:

According to e-mails forwarded to Polygon from supposedly former OnLive employees, the company will no longer exist as of today.

"I wanted to send a note that by the end of the day today, OnLive as an entity will no longer exist," reads an email forwarded to Polygon. "Unfortunately, my job and everyone else's was included. A new company will be formed and the management of the company will be in contact with you about the current initiatives in place, including the titles that will remain on the service."

However, according to Brian Jaquet, OnLive's Director of Corporate Communications, the story is untrue. The company's Twitter feed is still posting normally and, in response to an email from MacRumors, Jaquet wrote:

We don't respond to rumors, but of course not.

[…]

I have no comment on the news other than to say the OnLive service is not shutting down.

I'm sorry I cannot be more specific.

We've followed OnLive for a while, particularly after the company demonstrated an iOS version of its streaming video game software last December. That software was supposed to deliver "console-class gaming to tablets and phones", but is still awaiting approval from Apple to join the App Store.

Earlier this year, the company released a iOS app called OnLive Desktop that used its video game streaming technology to put a full-fledged Windows client on the iPad, including a Flash and PDF-enabled web browser.

Update: Kotaku reports that the company will be filing for bankruptcy and a new company will be created from the remains of OnLive and some employees will be brought over to that organization. Others have apparently been laid off.

Update 2: OnLive has issued the following statement to MacRumors clarifying the situation:

We can now confirm that the assets of OnLive, Inc. have been acquired into a newly-formed company and is backed by substantial funding, and which will continue to operate the OnLive Game and Desktop services, as well as support all of OnLive's apps and devices, as well as game, productivity and enterprise partnerships. The new company is hiring a large percentage of OnLive, Inc.'s staff across all departments and plans to continue to hire substantially more people, including additional OnLive employees. All previously announced products and services, including those in the works, will continue and there is no expected interruption of any OnLive services.

Jailbreak hacker and security researcher pod2g today revealed a newly-discovered security issue in all versions of iOS that could allow malicious parties to spoof SMS messages, making a recipient think that a message came from a trusted sender when it in fact came from the malicious party.

The issue is related to iOS's handling of User Data Header (UDH) information, an optional section of a text payload that allows users to specify certain information such as changing the reply-to number on a message to something other than the sending number. The iPhone's handling of this optional information could leave recipients open to targeted SMS spoofing attacks.

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.

In a good implementation of this feature, the receiver would see the original phone number and the reply-to one. On iPhone, when you see the message, it seems to come from the reply-to number, and you [lose] track of the origin.

pod2g highlights several ways in which malicious parties could take advantage of this flaw, including phishing attempts linking users to sites collecting personal information or spoofing messages for the purposes of creating false evidence or gaining a recipient's trust to enable further nefarious action.

In many cases the malicious party would need to know the name and number of a trusted contact of the recipient in order for their efforts to be effective, but the phishing example shows how malicious parties could cast broad nets hoping to snare users by pretending to be a common bank or other institution. But with the issue resulting in recipients being shown the reply-to address, an attack could be discovered or thwarted simply by replying to the message, as the return message would go to the familiar contact rather than the malicious one.

While The Wall Street Journal is outlining Apple's goals for a television set-top box, others continue to believe that Apple is working on a standalone television set of its own integrating much of the same functionality.

One of those observers is Jefferies & Co. analyst Peter Misek, who has been piecing together clues from Apple's supply chain in Asia and noted back in March that components for an Apple television set were "starting to move in small quantities". Misek is out with a new research note today, claiming that the Apple's television is now in "full production" with Apple looking to partner with providers such as AT&T and Verizon on the product while offering a set-top box alternative for entrenched cable providers.

We believe the iTV is 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. Additionally, the WSJ's sources indicate Apple may also consider a set-top box version for the cable operators.

Misek is currently modeling for sales of two million Apple television sets in the fourth quarter of this year with an average selling price of $1250, but he notes that Apple may push back the launch into 2013 as it puts its focus on the iPad mini to counter efforts by Google, Amazon and Microsoft in the tablet market.

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.

Misek also notes that Apple could be looking at a potential problem with display partner Sharp, which has continued to experience financial difficulties amid fears that the company could enter bankruptcy. Apple's assembly partner Foxconn/Hon Hai has already entered into a partnership that saw the company take a 10% stake in Sharp, with Hon Hai reportedly seeking to raise its stake to 20% as it renegotiates the deal in light of Sharp's continued troubles. Misek believes that Apple may find itself having to "spearhead a quiet rescue" of Sharp with the assistance of Hon Hai, given the close relationship among the three companies and Apple's existing investments in Sharp's facilities.

Following last month's report that Apple and Google were heading up separate consortiums bidding to obtain Kodak's portfolio of digital imaging patents, The Wall Street Journal now reports that the two camps may surprisingly be joining the same team. The negotiations are reportedly seeing Apple joining forces with its courtroom foes Samsung and HTC, as well as smartphone platform rival Google, in an effort to obtain the patents for a price well below that sought by Kodak.

The bidding group brings together a raft of strange bedfellows. It includes Apple Inc. and Google Inc., fierce competitors in the global smartphone market. It also includes Intellectual Ventures Management LLC, which buys up patents to seek licensing revenue and increasingly sue other companies for infringement, and RPX Corp., which buys patents to keep them from being used against its members in suits. [...]

People familiar with the matter said the consortium bidding on Kodak's patents also includes Samsung Electronics Co., LG Electronics Inc. and HTC Corp., all companies building smartphones based on Google software.

The report notes that the large consortium of competitors is seeking to purchase Kodak's patent portfolio for "more than $500 million", above opening bids but well below the $2.2-$2.6 billion Kodak has been hoping to win. A win by the consortium could help prevent litigation over the patents by keeping them out of the hands of a single company, but antitrust regulators could raise complaints over the move.

As a result of the volatile negotiations, Kodak has extended bidding several times and has indicated that may end up pulling some or all of its patents from the auction block if pricing is not in line with what it feels it needs to assist with its bankruptcy issues.

After setting a record high close yesterday, Apple's stock today has extended its strong run that has been in place since last month's disappointing earnings numbers, pushing through to set a new all-time intraday high. The stock hit a new high of $644.13 per share just minutes ago, besting the previous all-time high of $644.00 set on April 10.

The move has also pushed Apple's market capitalization above $600 billion for the first time since April 10, also marking a 23% increase in stock price since the bottom of this dip came at $522.18 during trading on May 18.

Apple's new all-time high comes a day after the company issued its first quarterly stock dividend since 1995, giving shareholders $2.65 per share as one piece of the company's strategy for handling its massive stockpile of cash. Investors had been calling for a dividend for quite some time as Apple's cash hoard approached and then exceeded $100 billion, with the company relenting in a March announcement in which the company outlined its belief that it will have enough cash on hand to meet its needs for the foreseeable future. The company also instituted a $10 billion stock buyback program intended to offset dilution coming from stock grants and employee stock purchases.