MacRumors

Investment research firm UBS today issued a report highlighting retention rates for smartphone users, judging consumer loyalty based on whether they plan to make their next purchase from the same manufacturer as their current handset. According to the worldwide survey, 89% of iPhone users report that they will purchase another iPhone.

smartphone retention rate
No other manufacturer topped a 40% retention rate in the survey, with HTC taking second place at 40%. Android as a whole has a planned retention rate of about 55% according to the survey, indicating that while many current users of Android handsets are planning to switch manufacturers, a fair number of them do intend to stay with Android. But 31% of surveyed Android users report intending to switch to the iPhone for their next device, with over 50% of the total "switchers" planning to move to Apple from another manufacturer as only about 10% of switchers are moving away from Apple.

smartphone switcher rates
Research in Motion has experienced a steep drop in retention rate, with only 33% of current BlackBerry users planning to purchase another BlackBerry, down from 62% a year and a half ago. In contrast, Apple's retention has fallen only 6 percentage points over that time in the face of strong competition from Android.

Related Forum: iPhone

CNET reports that Apple is piloting a new program at its San Francisco flagship retail store, allowing store employees to check out loaner iPads for up to a week. The program is an additional perk to satisfy its employees and provides them with more hands-on time with the device to help them better assist customers.

The program, which one source described as a "pilot," lets employees borrow from a stock of loaner devices. Employees can then use the device freely for one week before having to return it to the store, allowing for others to use it.

At the moment, the loaner program is only in use at Apple's flagship store in San Francisco, and it's unclear whether it will it will make its way to other stores, or include other products.

Meanwhile, Fortune reports that Apple has wrapped up a drive to allow users to donate their used iPads to the Teach for America program. Launched earlier this year with the debut of the iPad 2, the program allowed Apple to provide each of the over 9,000 members of the Teach for America program with a free first-generation iPad.

ipad teach for america window
Teach for America window display at Apple retail store (Source: SME Branding)

The report notes that Steve Jobs' wife, Laurene Powell, is on the board of directors of Teach for America, offering a personal connection to the initiative. Apple has also promoted the iPad and Teach for America in its retail stores with large window displays.

Related Roundup: iPad
Buyer's Guide: iPad (Caution)
Related Forum: iPad

via technologies logoBloomberg reports that Taiwanese company VIA Technologies has filed a patent lawsuit against Apple, alleging infringement by the processors used in Apple's mobile devices.

Via, a semiconductor maker based in Taipei, seeks a jury trial and an order to prohibit Cupertino, California-based Apple from selling products containing the inventions in the U.S., according to a complaint filed yesterday in federal court in Wilmington, Delaware.

“The products at issue generally concern microprocessors included in a variety of electronic products such as certain smartphones, tablet computers, portable media players and other computing devices,” Via said in the complaint.

The patent lawsuit is clearly targeting Apple's custom ARM-based A4 and A5 processors used in its recent iOS devices, as the filings name the following devices as being addressed by the complaint: iPad, iPad 2, iPhone 4, iPhone 4 CDMA, iPod touch 4th generation, and Apple TV 2nd generation.

VIA had previously been part of a joint venture behind S3 Graphics, which won a U.S. International Trade Commission judgment against Apple several months ago in a separate complaint, but sold the company to HTC just days after that victory.

gartner sep11 tablet projections
Gartner's projections of worldwide tablet sales to end users (thousands of units)

Research firm Gartner today released updated sales estimates for the tablet market, noting that a lack of momentum from competing products will give Apple's iPad "free run" through the lucrative holiday shopping period. Looking out over the longer term, Gartner sees Apple maintaining a majority share of the tablet market through 2014 even as Microsoft's Windows 8 and Research in Motion's QNX platforms are expected to gain some traction.

“We expect Apple to maintain a market share lead throughout our forecast period by commanding more than 50 percent of the market until 2014,” Carolina Milanesi, research vice president at Gartner. “This is because Apple delivers a superior and unified user experience across its hardware, software and services. Unless competitors can respond with a similar approach, challenges to Apple’s position will be minimal. Apple had the foresight to create this market and in doing that planned for it as far as component supplies such as memory and screen. This allowed Apple to bring the iPad out at a very competitive price and no compromise in experience among the different models that offer storage and connectivity options.”

Gartner has pared back its estimates for Android tablet sales in 2011 by 28% over last quarter's projections, identifying extremely weak adoption due to high prices, user interface issues, and limited app offerings. Only some success in low-cost Asian markets and strong expectations for Amazon's forthcoming tablet kept Gartner from slashing projected Android device sales even further.

Android is expected to see stronger growth heading into next year as Google pushes out its next-generation "Ice Cream Sandwich" release of Android and works to address fragmentation throughout the Android ecosystem. Gartner's sales projections do not, however, see Android tablets catching up to the iPad by the end of the forecast period of 2015.

Related Roundup: iPad
Tag: Gartner
Buyer's Guide: iPad (Caution)
Related Forum: iPad

ifc
Apple opened the new Hong Kong retail store to the press, providing the first look inside the massive new two level store. NeonPunch provided this video walkthrough (and photo gallery), and reports that Apple has hired over 300 employees to work at the store. The new store is also complete with a spiral glass staircase in the center.


Meanwhile, MICGadget reports that Apple CEO Tim Cook is rumored to be making the trip to Hong Kong to attend the opening ceremony. The new Hong Kong store will be opening on Saturday, September 24th at 9am. The report also suggests that Cook may attend the grand opening of the Nanjing East store in Shanghai. Cook's travel schedule may explain the unusual Friday opening for the Nanjing East store.

Thanks to our reader for the photo

KDDI logo
Marketwatch reports that KDI Corp will be selling the next generation iPhone come October, likely alongside rival Softbank, who had enjoyed exclusivity up until now.

In a blow for the Japanese cell phone carrier's rival, Apple and KDDI have already entered into a sales pact for the new phone, Nikkei Business said, citing sources close to the matter.

KDDI will reportedly making preparations for the "iPhone 5" at its shops throughout the country around November.

According to an analyst quoted in the article, customers will welcome the expansion as "Softbank's telecommunications quality lags other carriers" in Japan.

samsung logo

According to Digitimes, Apple is continuing to diversify its suppliers and moving away from its dependance on Samsung:

Apple has increased its purchases of DRAM and NAND flash from Japan, according to industry sources, adding that Toshiba and Elpida Memory are being pinpointed as beneficiaries of the increased procurement.

Apple and Samsung have been in increasingly escalating legal battles over patent claims concerning Apple's iOS devices and Samsung's Galaxy line These lawsuits are said to be the reason for Apple's shifting of suppliers. Apple had previously been reported to have moved from Samsung to TSMC for production of the A6 processor in 2012. Meanwhile, Samsung has even threatened to sue Apple over the iPhone 5 once it is released.

Apple had quickly become Samsung's biggest customer with contracts for over $7.8 billion in parts in 2011. Apple seems to be doing its best to shift those contracts to Samsung's competitors over the next year.

Update: Reuters reports that Samsung has announced a $10 billion investment in a new flash memory production line, hoping to increase its share of the market and lower its own costs. Samsung will take approximately nine months to get the new line fully up and running.

SprintFeed reports that Sprint will be limiting its mobile hotspot plans to 5GB of data as of October 2nd -- only days ahead of the rumored iPhone 4S/5 launch.

Bloomberg had reported that Sprint would finally be getting the next generation iPhone when it launches in October. Sprint is expected to provide unlimited data plans for the new iPhone and will be the only U.S. provider to offer such a plan. Both AT&T and Verizon originally offered the iPhone with unlimited mobile data, but later transitioned to tiered plans of limited data.

seasonofchange
Sprint will still offer "unlimited" for those using data on-device, but for those who purchase the additional $29.99/mo hotspot plans will be limited to 5GB of data a month. Mobile Hotspot plans allow users to tether their iPhone to their laptops and share their mobile internet connection. This is presumably to prevent individuals from consuming large amounts of data through their laptops. Sprint's on-device mobile plan appears as if it will remain unlimited for the time being.

ios 5 newsstand1
Publications participating in Apple's Newsstand feature, coming this fall in iOS 5, will only be able to update their issues once per day, according to documents obtained by AppAdvice.

The background downloading feature of Newsstand is interestingly handled by push notifications. That is, when new content is ready, the developer can, once a day, send a push notification to your device with special data, and your iDevice will then (if it’s ready to do so, battery and connection-wise) start downloading new content in the background.

The ability to only update once per day is a curious decision, as it seems publishers will not be able to automatically update their pubs to reflect breaking news or publish corrections as they currently can via a website or dedicated app.

This isn't a huge deal for weekly or monthly print publications which are used to having deadlines before closing the book on an edition. But for daily newspapers, who are getting into the habit of updating a newspaper webpage dozens of times a day, it may present some difficulties. Oddly, digital technologies like the iPad have pushed publications towards an "up-to-the-minute" news cycle, but Newsstand seems to be going back to a more traditional "once-a-day" publishing model.

As with all Apple's content efforts, getting publishers on board isn't going as smoothly as the company would hope. Eight French publications are banding together to negotiate with Apple regarding Newsstand access, with concerns over the 30% cut in revenue that Apple traditionally takes, and access to customer data.

Update: Some readers on Twitter have cleared up the situation slightly. @Xonder notes that "Newsstand apps can only update once a day __In the background__. Once the app is launched, it can update all the time."

@BenjaminZAMayo says users will be notified of important updates and breaking news "as they do at the moment - [with] push notifications," but without automatic downloads.

iPhone 5G Back Cover White
BGR reports on a new research note from Wedge Partners analyst Brian Blair, who claims that Apple will be introducing only one new iPhone model, the so-called "iPhone 4S", at its October 4th media event. The claim runs contrary to some other recent rumors that Apple will be introducing both an iPhone 4S and a redesigned iPhone 5, but agrees with other analysts who have seen no sign of a redesigned iPhone 5 coming through Apple's supply chain.

“We expect the focus of the new iPhone will be iOS 5, a speedier A5 processor and a higher resolution 8 MP camera with a small possibility of a larger 4 inch screen,” Blair wrote. “We believe the casing will be largely similar to the iPhone with some particular modifications to the antennae [sic]. We don’t expect a second, dramatically different iPhone to accompany this as we don’t think Apple needs to have 3 models in the market to address the high end, mid-tier and low end since the iPhone 4 (with memory lowered to 8 GB) will drop to $99 and effectively attack those markets.”

The complete lack of parts evidence for a redesigned iPhone 5 has led to serious questions about the potential for such a device being launched this fall, and with the iPhone 4S having been seen sporting an A5 processor it seems possible Apple may be planning only the iPhone 4S as its next-generation iPhone model.

Related Forum: iPhone

According to The Next Web, Apple board member Al Gore today claimed that Apple will be releasing "new iPhones" next month, making the first such public comment on Apple's next-generation iPhone release plans from anyone closely connected to the company.

gore apple
Gore's use of the plural "iPhones" is naturally sparking speculation that Apple may indeed be planning to launch both a redesigned iPhone 5 and a more modest "iPhone 4S" based on the current iPhone 4 design.

We’ve been informed by Toby Shapshak, the editor of Stuff Magazine in South Africa that is attending the conference, that his quote was specifically: “Not to mention the new iPhones coming out next month. That was a plug.”

Shapshak says that the statement was definitely plural, although it wasn’t clear whether that meant two different models, as the statement was not clarified in any way by Gore.

It's not entirely clear just how familiar Gore would be with exact details of the next iPhone, as most boards of directors are more concerned with broader issues such as establishing corporate policy frameworks and objectives, monitoring financial performance, and representing shareholder interests. But Gore certainly could have knowledge of Apple's general timeframe for such a major product launch.

Meanwhile, Electronista and Reuters report that Sprint CEO Dan Hesse danced around the topic of the iPhone at a Goldman Sachs investor conference today, noting that the company's financial guidance does not take the device into account and would have to be adjusted if the carrier were to begin offering the iPhone.

Hesse also cited the iPhone as the number one reason customers have left Sprint, noting that the carrier has added subscribers over the past two quarters in spite of its disadvantage against iPhone-offering rivals AT&T and Verizon.

Related Forum: iPhone

facetime
Calls made using Apple's video chat program, FaceTime, are encrypted end-to-end and -- with the right setup -- are HIPAA compliant, according to a statement from the company obtained by ZDNet.

This matters because any products for healthcare purchased with federal funds must be HIPAA-compliant. HIPAA, or the Health Insurance Portability and Accountability Act, was a large health-care bill passed in 1996, that, among other things, instituted wide requirements and guidelines surrounding patient privacy and confidentiality.

Keeping Protected Health Information, or PHI, safe and secure is essential for healthcare providers and FaceTime meeting those requirements allows hospitals to not only purchase iPads with federal funds, but it allows doctors to use FaceTime to confer with colleagues about patient issues and to talk directly to patients remotely.

However, to be truly compliant, hospitals need to have the proper wireless network. The WEP encryption protocol isn't strong enough and Apple recommends WPA2 Enterprise for secure communications:

iPad supports WPA2 Enterprise to provide authenticated access to your enterprise wireless network. WPA2 Enterprise uses 128-bit AES encryption, giving users the highest level of assurance that their data will remain protected when they send and receive communications over a Wi-Fi network connection.

In addition to your existing infrastructure each FaceTime session is encrypted end to end with unique session keys. Apple creates a unique ID for each FaceTime user, ensuring FaceTime calls are routed and connected properly.

FaceTime is available on the iPhone 4, iPad 2, fourth generation iPod touch and Macs running Snow Leopard and Lion. Video chats are available between any and all of these devices.

Apple has aggressively promoted the feature since it was released.

flash player 3d iconAdobe today announced the upcoming launch of Flash Player 11 and AIR 3, promising "console-quality 2D and 3D games" delivered over the Internet to a full range of computers, mobile devices, and other connected appliances.

Dozens of new features in Flash Player 11 and AIR 3 allow developers to deliver a new class of gaming and premium video experiences, as well as sophisticated, data-driven applications with back-end systems integration across devices, including the iPhone and iPad via AIR. AIR native extensions add support for unique device features and native code libraries, empowering developers to freely choose the right mix of Flash, HTML5 and native code to provide powerful user experiences across PCs and devices.

AIR 3 is also bringing improvements to video streaming, offering the ability to stream full frame rate HD video within AIR applications for iOS via H.264 encoding.


Hardware-accelerated rendering of 2D and 3D graphics is said to see a 1,000-fold increase in performance over Flash Player 10.2 and AIR 2, offering animation of millions of objects at 60 frames per second for smooth video performance on computers and connected televisions, with support for mobile devices currently in a pre-release state. Other improvements include new support for content protection, rentals and subscriptions, as well as support for thousands of AIR native extensions to allow developers to increase the functionality of their software.

Public release versions of Flash Player 11 and AIR 3 will debut early next month.

newsstand icon buttonWith Apple set to broaden access to digital subscription content with the debut of its prominent Newsstand feature in iOS 5, Reuters reports that a group of major French newspapers are banding together to strengthen their positions in negotiating with Apple over digital distribution.

The bid by eight publications, including newspaper Le Figaro and sports daily L'Equipe, is the latest sign of growing disillusionment among some global publishers over what they consider Apple's rigid terms and high commission of 30 percent.

[...]

They are also negotiating with Apple as a collective, and will not sell their products on Apple's own kiosk, dubbed the Newsstand, set to launch next month, without key concessions.

The report notes that media companies have already made some headway in resisting Apple's demands, with Apple backing off on its pricing demands for in-app purchases and subscriptions earlier this year. Prominent business newspaper Financial Times has also made a stand by pulling its iOS application and utilizing a well-regarded web app to offer its content without being subject to Apple's rules.

Le Figaro executive Pascale Pouquet said the French publications were still in talks with Apple over whether it would accept the changes to the kiosk, but insisted that the papers would not fold on their key demands such as a reduction in the 30 percent commission and access to the customer data.

"We'll have to be ready to accept to lose some sales if we cannot come to terms with Apple," he said. "But sometimes it's better to cut off a finger than to sever the whole arm."

The publications have come to terms with Google to sell their content for Android, with Google charging only a 10% commission on sales and allowing publishers to have control over pricing and customer data collection.

Apple has been firm in its stance regarding a 30% commission as has become standard for many types of content on the iOS platform, and has insisted on users retaining control over whether their personal information is shared with the publications.

cook iphone 5 photoshop
AllThingsD reports that Apple will be holding its highly-anticipated iPhone 5 media event on October 4th.

While Apple could certainly change its plans anytime, sources said that the October 4 date has been selected by the company to showcase the iPhone 5. Sources added that the plan is now to make the new device available for purchase within a few weeks after the announcement.

According to the report, new Apple CEO Tim Cook should play a prominent role in the event in order to assert himself as the new leader of the company, although it will almost certainly be a team presentation with other executives such as Phil Schiller, Scott Forstall, and Eddy Cue leading portions of the event. It is unclear whether Steve Jobs will make an appearance at the event, with the report suggesting that a decision on whether or not he appears would be a last-minute one based on his health.

MacRumors noted yesterday that Apple is expected to also be introducing minor updates to its iPod line, and had pinpointed the first week in October for that introduction, with availability set for the middle of the month. Apple generally issues invitations to its media events about a week ahead of time, so we can expect official notice of the event to appear sometime around early next week.

Update: The Loop's Jim Dalrymple confirms with a simple "Yep" that October 4th is the date of the event.

Related Forum: iPhone

asci 2011 pc survey
The American Customer Satisfaction Index (ASCI) today released its latest results on U.S. consumer satisfaction in the personal computer industry, with Apple topping the charts for the eighth consecutive year and setting a new company high for ratings.

Apple’s record of customer satisfaction preeminence in the personal computer industry continues unabated in 2011, as the company adds another point to its already exceptional score. At 87 (+1%), Apple outdistances its nearest competitor by 9 points.

“In the eight years that Apple has led the PC industry in customer satisfaction, its stock price has increased by 2,300%,” remarks Claes Fornell, founder of the ACSI and author of The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference. “Apple’s winning combination of innovation and product diversification—including spinning off technologies into entirely new directions—has kept the company consistently at the leading edge.”

Apple's score of 87 rose by one point over last year's score of 86 that had been its previous record high in the survey. This marks the third straight year that Apple has held a nine-point lead over its nearest competitor in the industry.

instagramIcon reasonably smallHit photography app Instagram has released version 2.0, with live effects, new filters and much higher resolution photos.

Instagram now offers live previews of filters:

See the world through Instagram’s stunning effects before you even snap a photo. Simply select a filter, hold the camera up to the scene and see the world through Instagram’s visual effects. We’ve re-written your favorite Instagram filters to be over 200x faster so even after having taken a photo, switching between them takes no time at all.

The app has four new filters, Amaro, Rise, Hudson, and Valencia -- the company worked with popular Instagrammer @colerise to create the effects.

Perhaps most importantly, the app now supports images up to 1936x1936 on the iPhone 4, up substantially from the prior version, which only supported images of 612x612.

The app also has a slightly upgraded icon. Instagram is available free on the App Store. [iTunes]

littlebigdiskLaCie's first Thunderbolt hard drives are finally available, more than 6 months after Apple put its first Thunderbolt-enabled Macs on sale.

The Apple Online Store is offering 1TB and 2TB Little Big Disks for $399.95 and $499.95 respectively, both shipping in 1-2 weeks. 9to5Mac reports that these drives are already available at some Apple Retail Stores.

In June, LaCie promised SSD drives with Thunderbolt this summer ("a question of weeks"), but those have yet to be released. (Update: LaCie now says the SSD drives will be available in October.)

The hard drives are available on Apple's website and will be available soon through LaCie directly.

Update 2: Apple has removed the 1 TB and 2 TB drives from its online store for unknown reasons. The company has also added listings for the 250 GB ($899.95) and 500 GB ($1499.95) solid-state drive versions, with shipping estimates set at 1-2 weeks.

Update 3: The 1 TB and 2 TB models have now returned to Apple's online store with a shipping estimate of one week on both models. Shipping estimates for the two SSD models have been pushed out to 1-2 months.