MacRumors

ZDNet reports on the discovery of a significant breach of password security for certain users of Apple's FileVault encryption system under OS X Lion. Affected systems currently store the login information for every recent user of the machine in plain text, allowing for easy circumvention of encryption.

In specific configurations, applying OS X Lion update 10.7.3 turns on a system-wide debug log file that contains the login passwords of every user who has logged in since the update was applied. The passwords are stored in clear text.

Anyone who used FileVault encryption on their Mac prior to Lion, upgraded to Lion, but kept the folders encrypted using the legacy version of FileVault is vulnerable. FileVault 2 (whole disk encryption) is unaffected.

The issue was noted last Friday by David Emery on the Cryptome mailing list.

This is worse than it seems, since the log in question can also be read by booting the machine into firewire disk mode and reading it by opening the drive as a disk or by booting the new-with-LION recovery partition and using the available superuser shell to mount the main file system partition and read the file. This would allow someone to break into encrypted partitions on machines they did not have any idea of any login passwords for.

Emery also offers some suggestions for dealing with the issue, including turning on FileVault 2 and setting a firmware password on the machine in question.

The issue was actually first noted in the Apple discussion forums back on February 6, just days after OS X 10.7.3 was released to the public. That poster now notes that the issue may extend further than just the specific FileVault situation outlines by others, as he notes that he has experienced the same behavior on an OS X Lion virtual machine through VMware Fusion, without FileVault ever having been active on the installation. Consequently, the extent of the issue may not yet be fully known.

Apple has yet to offer any response to the issue, although it is unclear when the company became aware of it. Apple touts the security features of OS X Lion in its promotional materials for the operating system, with a focus on FileVault as an important component of that security, and it seems likely that the company will move as quickly as possible to investigate and fix the issue.

Two weeks ago, Adobe officially unveiled its new Creative Suite 6 (CS6) bundles of design applications, as well as its new Creative Cloud subscription service offering access to the software and other cloud services for integrating access across desktop and mobile devices.

Adobe had announced that the new products would begin shipping within 30 days, and the company officially began shipping CS6 today. Availability of Creative Cloud will follow on Friday, May 11.

Top new features across the CS6 product line include:

- New levels of performance with tools that take advantage of Adobe Mercury Graphics functionality, allowing users to go from ideas to finished work faster than ever before.
- Enhanced user interfaces that vastly simplify workflows, so users can focus on their content and achieve results quicker.
- New capabilities that streamline the creation of responsive content, ensuring website and apps look great across virtually all screen sizes and form factors.
- Remarkable new science, integrated into imaging and video apps, makes previously impossible tasks suddenly possible.

Adobe Creative Cloud membership delivers:

- Access to download and install all CS6 applications, new HTML5 desktop products – Adobe Muse 1.0 and Adobe Edge preview – and deep integration with Adobe Touch Apps.
- Easy storage and sharing of content across desktop, mobile devices and the cloud.
- Integrated website publishing and hosting.
- Ongoing innovation that provides members with the most up-to-date products and services

Pricing for CS6 bundles begins at $1299 for the Design Standard collection, which includes Photoshop, InDesign, Illustrator, and Acrobat X Pro. The Master Collection, which includes all CS6 applications, is priced at $2599.

Creative Cloud will be priced at $49.99 per month on an annual commitment or $74.99 for month-to-month access, with the service providing full access to all CS6 applications, cloud storage and hosting, and integration with HTML 5 and mobile apps.

Xinhua reports on comments from a Proview lawyer claiming that Apple has for the first time put forth a settlement offer in the dispute over the "iPad" trademark in China. The offer came as part of settlement talks suggested by the court overseeing the case.

"We feel that the attitude of Apple Inc. has changed. Although they expressed that they were willing to negotiate, they have never taken any action before. But now, they are having conversations with us, and we have begun to consult on the case," said [Proview attorney] Xie Xianghui in an interview with Xinhua on Sunday. [...]

Xie said the two sides have discussed a compensation package, and Apple Inc. has tabled an amount it thinks appropriate. But the Proview side has not agreed on a deal, and Xie would not disclose the amount of money offered by Apple Inc..

A settlement offer from Apple does not necessarily mean that the case is nearing a resolution, as Bloomberg notes that a "big gap" remains between Proview and Apple in their expectations of a settlement figure.

“The Guangdong Higher People’s court is trying to mediate this, and both parties are trying to negotiate and come to a settlement,” Xie said. “Right now, there is still a big gap between the two sides on the settlement amount.”

Apple contends that it purchased the Chinese rights to the iPad trademark from Proview's Taiwanese arm in a December 2009 deal encompassing rights in a number of countries and carrying a $55,000 purchase price. But Proview has argued that the Chinese rights were controlled by its Chinese arm and that the Taiwanese unit had no ability to sell them to Apple, despite the fact that corporate officers common to both units were involved in the deal.

Reports on Proview's damage claims have varied, but sources have indicated that the company has been seeking as much as $2 billion in compensation from Apple to turn over the iPad trademark in China.

Digitimes reports that Apple is planning to launch a cheaper MacBook Air in the third quarter of this year, dropping the entry-level price to $799 from the current $999. The move is reportedly being made to take on Intel's "Ultrabook" initiative that is pushing low-cost, ultra-thin notebook PCs.

Although Acer has recently reduced its ultrabook shipment target, Intel continues to aggressively push ultrabooks and is aiming to have the devices priced at US$699 in the second half of the year. However, if Intel is unable to bring down ASPs to its goal, the price gap between ultrabooks and the US$799 MacBook Air may further postpone the time ultrabooks become standardized, the sources noted.

Ultrabook manufacturers have so far struggled to match or beat Apple's MacBook Air pricing, leading to weak shipments. But Intel remains committed to the initiative, and is working with manufacturers to continue to bring prices down.

It is unclear just how Apple would achieve a $200 price cut on the MacBook Air, given the company's focus on maintaining high profit margins. Certainly pricing on the solid-state drives used in the MacBook Air will continue to fall, but Apple likely has only limited flexibility to bring down pricing. And given the strong performance of the MacBook Air as Ultrabooks continue to struggle, it is not immediately obvious whether Apple would even see a need to lower pricing on its models.

Digitimes has a spotty track record with regard to Apple rumors, although it has on occasion offered accurate insight based on sources in Apple's supply chain. The publication's recent claims regarding Apple's notebook plans including a report of production being underway on slimmer 13-inch and 15-inch MacBook Pro models, as well as a suggestion that Apple is considering a 14-inch MacBook Air for Asian markets.

While there has been much debate about whether Apple will refer to the next-generation iPhone as "iPhone 5", "iPhone 6", simply "iPhone", or something else entirely, Fusible notes that Apple has filed a claim with the World Intellectual Property Organization (WIPO) seeking to gain control of the iPhone5.com domain. WIPO authorities are currently assessing compliance of Apple's claim with the agency's regulations, and proceedings are likely to be initiated in the near future.

The iPhone5.com domain currently hosts a very small discussion forum dedicated to discussion of the "iPhone 5". The forum was launched in October 2010 following the debut of the iPhone 4 earlier in the year.

Apple's pursuit of the iPhone5.com domain is interesting given how slow the company has been to take action to secure domains related to its previous products. Apple didn't gain control of iPhone4.com until nearly a year after that device launched and Apple didn't seek to gain control of iPhone4S.com until several weeks after that device debuted last October. In the latter case, Apple was likely extremely motivated to take control of the domain because it was being used to forward visitors to pornography sites.

Given that Apple typically doesn't pursue domain names for its products until after they launch, lest their names be revealed ahead of time by the negotiation process, it seems odd that Apple is already seeking to gain control of iPhone5.com. But with "iPhone 5" having been the name informally attached to Apple's next iPhone form factor redesign for nearly two years now and still in popular use, the company apparently believes that it should have some control over the name's usage.

Speaking at a conference this week, AT&T CEO Randall Stephenson noted that he only had one regret about AT&T being the first cellular carrier to support the iPhone. As reported by the New York Times:

“My only regret was how we introduced pricing in the beginning, because how did we introduce pricing? Thirty dollars and you get all you can eat,” he said in the on-stage interview at the Milken Institute’s Global Conference on Wednesday. “And it’s a variable cost model. Every additional megabyte you use in this network, I have to invest capital.”

Since then, AT&T has discontinued offering unlimited data plans to new customers, as well as throttling users who have been grandfathered in from older plans.

Stephenson is also concerned about services like Apple's iMessage texting service and Skype affecting AT&T's existing business models.

“You lie awake at night worrying about what is that which will disrupt your business model,” he said. “Apple iMessage is a classic example. If you’re using iMessage, you’re not using one of our messaging services, right? That’s disruptive to our messaging revenue stream.”

All those concerns aside, AT&T has been extraordinarily successful attracting and keeping profitable iPhone users. In the last quarter, AT&T made $3.58 billion in profit on $29 billion in sales. The iPhone accounted for 60% of the carrier's total phone sales to postpaid customers in that quarter.

Bloomberg briefly reports that the U.S. Federal Trade Commission (FTC) is preparing to fine Google over its efforts to circumvent privacy restrictions in Safari for iOS to track users through ads on numerous sites across the web. According to a source, the fine is likely to amount to tens of millions of dollars.

Google Inc. (GOOG) is negotiating with the U.S. Federal Trade Commission over how big a fine it will have to pay for its breach of Apple Inc. (AAPL)’s Safari Internet browser, a person familiar with the matter said. [...]

The fine would be the first by the FTC for a violation of Internet privacy safeguards as the agency steps up enforcement of the Web.

Google took advantage of a loophole in Safari's default privacy settings, making the browser think that the user was interacting with a given ad, thus allowing a tracking cookie to be installed. With that cookie installed, it became easy for Google to add additional cookies and to track users across the web as they visited other sites displaying ads from Google's networks.

Late yesterday, Cult of Mac reported that select Walmart locations had significantly dropped their prices on the AT&T iPhone 4S and iPhone 4, slashing the 16 GB AT&T iPhone 4S to just $114 and the AT&T 8GB iPhone 4 to $34 on contract. Walmart's usual pricing has been $188 for the iPhone 4S and $88 for the iPhone 4, already below Apple's standard $199/$99 pricing.

This news comes to us from Edmond, Oklahoma, and we’re not sure how widespread the sale is in the United States, or how long it will last. AT&T has yet to clarify if this price drop is a national carrier promotion, or a change decided by Walmart.

Highlighting the sporadic nature of the reports, The Verge notes that it contacted six Walmart stores around the United States and found only the initial Edmond, Oklahoma store and a store in Austin, Texas offering the discounted pricing. Walmart's website also has not been updated with the lower pricing.

Most observers expect that Apple will not introduce new iPhone hardware until the September-October timeframe, in line with the iPhone 4S debut last year. But for those still holding out hope for a launch next month at Apple's sold-out Worldwide Developers Conference, Walmart's price drop, even if only sporadic for the time being, may provide a reason to not yet give up.

Update: Walmart issued a statement to 9to5Mac saying the chain "experienced a pricing error in limited stores" and that the issue has since been corrected. The correct Walmart pricing for the 16GB iPhone 4S is $188; iPhone 4 at $88; and iPhone 3GS at $0.97.

Last month, it was discovered that Apple quietly tweaked the 16 GB Wi-Fi iPad 2, equipping the device with a smaller 32-nm die shrink of the A5 system-on-a-chip previously used in the line. The tweaked iPad 2 carries an internal identifier of "iPad2,4", which was first spotted in an iOS 5.1 beta back in November, but at the time it was unclear what the model represented.

A similar die shrink of the A5 was found in the new Apple TV, and it appears that Apple made the move in order to test out production of next-generation chip processes in lower-volume devices. The A5X used in the third-generation iPad continues to be based on a 45-nm process.

Anandtech has now gotten its hands on one of these new iPad 2 models and subjected it to a series of battery life and performance tests, finding that the revised model offers identical performance to other iPad 2 models but with battery life improvements of 15-30% in several benchmarking tests.

Assuming Apple didn't change any fundamentals of its microarchitecture, the iPad 2,4's gains in battery life can be attributed directly to the process. The gains themselves are significant. We measured a 15% increase in our web browsing battery life, a nearly 30% increase in gaming battery life and an 18% increase in video playback battery life. Although Apple hasn't revised its battery life specs, the iPad 2,4 definitely lasts longer on a single charge than the original iPad 2.

Unfortunately, Anandtech notes that there appears to be no way for customers to ensure that they receive one of these revised iPad 2 models for their $399 purchase, as there are still a significant number of the original iPad 2 models in circulation and they can not be distinguished based without opening the box and turning on the device.

Samsung has certainly become Apple's primary competition in the smartphone race, with the two companies currently taking nearly all of the profits in the mobile phone industry. Consequently, it pays for Apple and its fans to take note of Samsung's advances with its own hardware, and today's launch of the new flagship Galaxy S III smartphone is no exception.

The Android-based Samsung Galaxy S III offers a large 4.8-inch Super AMOLED display with a resolution of 1280x720. The large screen means that Galaxy S III measures nearly 20% taller and wider than the iPhone 4S, but is slightly thinner and actually lighter. The device also includes an 8-megapixel rear camera and a 1.9-megapixel front camera that can be used for face recognition and tracking features.

Samsung Galaxy S III side-by-side with iPhone 4S (Source: Android Central)

With the innovative ‘Smart stay’ feature, the GALAXY S III recognizes how you are using your phone – reading an e-book or browsing the web for instance – by having the front camera identify your eyes; the phone maintains a bright display for continued viewing pleasure.

The GALAXY S III features ‘S Voice,’ the advanced natural language user interface, to listen and respond to your words. In addition to allowing information search and basic device-user communication, S Voice presents powerful functions in regards to device control and commands. When your phone alarm goes off but you need a little extra rest, just tell the GALAXY S III “snooze.” You can also use S Voice to play your favorite songs, turn the volume up or down, send text messages and emails, organize your schedules, or automatically launch the camera and capture a photo.

In addition to recognizing your face and voice, the GALAXY S III understands your motions to offer maximized usability. If you are messaging someone but decide to call them instead, simply lift your phone to your ear and ‘Direct call’ will dial their number.

Other features include "Pop up play", which allows users to play videos anywhere on their screen while still using other apps, camera improvements including zero-lag shutter and burst shot mode, and NFC capabilities. Samsung has also partnered with Dropbox to offer Galaxy S III users 50 GB of free storage for two years, a deal that will extend to all Samsung phones and tablets later this year and see the Dropbox app come preinstalled on the devices.

In another bid to take on Apple, Samsung is also rolling out a new Music Hub service that integrates both a streaming service and an iTunes Match-like scan-and-match service to provide users with access to their own music from anywhere. As noted by The Verge, Music Hub will cost $9.99 per month for one device or $12.99 per month for up to four devices plus web access.

The Samsung Galaxy S III will launch in Europe on May 29 before extending to the United States in June and other markets around the world going forward.