MacRumors

AT&T and Deutsche Telekom AG announced that AT&T would be acquiring T-Mobile USA in a cash and stock transaction worth $39 billion.

"This transaction represents a major commitment to strengthen and expand critical infrastructure for our nations future," said Randall Stephenson, AT&T Chairman and CEO. "It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more. During the past few years, America's high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth."

The transaction is said to improve network quality and will expand the reach of LTE to more than 294 million people.

AT&T and T-Mobile customers should see service improvements with improved voice quality due to increased cell tower density and broader network infrastructure. At closing, AT&T will immediately gain cell sites that would otherwise have taken five years to build.

The move will obviously curtail the need for a T-Mobile iPhone which has been rumored from time to time. The iPhone is presently offered on AT&T and Verizon only in the U.S. Existing AT&T and T-Mobile customers will presumably see a consolidation in service and coverage as the deal takes place.

While lines were long for the iPad 2 launch in the United States on Friday of last week, availability has been very scarce in the days since, with hopeful customers lining up outside Apple's retail stores each morning hoping that stock has arrived. And even when stock has arrived, customers have typically had to be very close to the front of the line to even have a chance at securing one of the hard-to-get devices.

Several MacRumors readers have written in and shared photos of the experiences trying to obtain an iPad 2, and frustration seems to abound as the long lines continue even a week after launch. Readers have reported that the line at Apple's flagship Fifth Avenue store in Manhattan is essentially a perpetual mass of people numbering in the hundreds, with customers camping out and swapping positions in-and-out day after day as they wait for more stock to arrive. Apple has erected barriers to contain the line, and once the line reaches the end of the barriers each day after stock has been distributed, no new customers are permitted to join the line.

Customers are especially keen on trying to pick up iPad 2 units from in-store sales, as shipping estimates for new online orders were quickly pushed out to 4-5 weeks. We've heard that some Apple retail stores are holding iPad 2 shipments received during the day until the following morning, with some stores opening early when they have stock in order to disperse their supplies and customer lines as much as possible before they open for regular business. Some forum readers have also being using inventory tracking features to try to pin down supplies at Target stores around the country.

As noted by The Loop, AT&T has once again slashed pricing on the 3G-capable models of the first-generation iPad, knocking another $100 of the 16 GB and 32 GB models and $200 off of the 64 GB model. On top of the original $100 discount that went into effect when the iPad 2 was announced, pricing is now set at $429 for the 16 GB 3G model and curiously at $529 for either the 32 GB or 64 GB model.

Despite the advertisement, the 32 GB model is currently showing as out of stock on AT&T's website, although it seems obvious that any customers at this point would opt for the 64 GB model at the same price point anyway.

The clearance pricing comes with the caveat that no returns or exchanges are permitted, but any purchases would of course be fully covered by Apple's warranty and Genius Bar support.

Apple's own clearance pricing for first-generation iPad 3G pricing remains at $529/$629/$729 with the original $100 discount.

iLounge reports that Apple is planning to roll out its revamped MobileMe service next month, potentially unveiling a new cloud-based service allowing users to store their music, photos, and other content for access from any of a number of Internet-connected devices.

The source, who works for a major educational institution, claims the schools supplier has said the current version of MobileMe is no longer available, and that Apple is suggesting new students sign up for the 60-day trial to cover the gap between the final MobileMe shipment and the launch of the new version.

The source also indicates that Apple plans to support the existing MobileMe service for the next year, suggesting that the new service may be different enough from existing offerings to allow the current program to continue for those who have already paid up for a year's subscription.

While we have reservations about the secondhand nature of the information originating from a "supplier", an April launch for the new MobileMe would fit with a report from earlier this month claiming that Apple will hold a media event early next month to preview iOS 5 and unveil the revamped MobileMe services.

Apple has been said to be working on an overhaul of MobileMe, and the company last month discontinued the retail box versions of MobileMe and removed the option for bundling discounted MobileMe service with new Mac purchases, suggesting that Apple may be downplaying its current MobileMe services ahead of the revamp.

App Store analytics firm Distimo today issued a new report comparing the performance of Apple's two-month old Mac App Store to the more mature iPad and iPhone App Store segments, revealing that the Mac App Store is dominated by paid apps that also carry a higher average price than paid iPad apps.

Looking at the 300 most popular apps in each of the iPhone, iPad, and Mac App Stores, Distimo found a clear pattern of popularity, with iPhone and iPod touch apps being downloaded more than five times as often as iPad apps, which themselves are downloaded more than five times as often as Mac apps. But the large disparities in downloads are partially offset by differences in average pricing that see a similar pattern in reverse, although to a lesser degree. Consequently, the differences between each platform are reduced from 5x to 2x when revenue is considered instead of downloads.

The top applications on iPhone generate 2.1 times the revenue of top applications on the iPad. The top paid applications on the iPad in turn generate 2.0 times the revenue of top paid applications in the Mac App Store.

The differences in the ratio of downloads and the ratio of revenue is captured in the average selling price of top 300 applications in the different stores: $1.57 on iPhone, $4.19 on iPad and $11.21 in the Mac App Store.

The Mac App Store also skews more toward paid apps in general than iOS apps, with only 12% of Mac App Store applications currently available for free. That compares to 29% of iPad apps and 35% of iPhone/iPod touch apps.

Based on Distimo's numbers, Apple's Mac App Store had about 2,225 applications available in the United States at the end of February when the survey was conducted. Our own sister site AppShopper currently shows that number approaching 3,000.

IHS iSuppli today issued a report detailing five components of the iPad 2 that are sourced from Japanese suppliers, indicating that they could see shortages in the wake of the Japanese earthquake that has shut down a number of manufacturing facilities in the country.

The IHS iSuppli teardown analysis of the iPad 2 so far has been able to identify five parts sourced from Japanese suppliers: NAND flash from Toshiba Corp., dynamic random access memory (DRAM) made by Elpida Memory Inc., an electronic compass from AKM Semiconductor, the touch screen overlay glass likely from Asahi Glass Co. and the system battery from Apple Japan Inc.

There potentially are other components from Japan in the iPad 2, however, the teardown analysis process cannot always identify all components' countries of origin.

The report notes that some of those manufacturers remain in operation following the earthquake, but logistics issues, employee absences, and rolling blackouts as the country seeks to rebuild its infrastructure could still hamper production and delivery of the needed parts.

While NAND flash and DRAM can likely be sourced from other vendors, Apple may have more difficulty replacing any lost production of the compass and glass components of the device. And with the battery appearing to be a custom design produced by Apple's own Japanese arm, a backup supplier is likely not available at this time.

For its part, Apple's manufacturing partner Foxconn has indicated that it is not currently experiencing any component shortages for the devices it is assembling, with industry sources suggesting that Foxconn should still have a 2-3 week supply of needed components and is likely working to secure additional supplies, whether it be from the usual suppliers or through alternative means.

As there are rumors that Apple will soon be out of product supplies because Japan's earthquake has caused shortages of components are circulating in the IT industry, Foxconn Electronics (Hon Hai Precision Industry), which declined to comment on specific clients, reemphasized that the company will not see any component shortages in the short term, and said the company has already prepared backup suppliers. Even if component supplies do fall into shortage, Foxconn's capability of securing supply resources is still much better than its competitors, the company added. Market watchers also pointed out that Foxconn should still have about 2-3 weeks of component inventory left as IT players normally keep a certain level of inventory on hand for safety.

Apple's iPad 2 has seen significant demand, and the company has had difficulty keeping up with the flow of online orders and in-store lines. Shipping estimates for new online orders quickly slipped to 4-5 weeks, and even some of those who were among the first to place online orders last week have yet to see movement on their shipments. Meanwhile, availability at the company's retail stores has been extremely sparse, with only sporadic shipments arriving and even then containing only small supplies of select models.

Cult of Mac claims to have some details of how Apple will take advantage of NFC (Near Field Communications) technology in their future mobile devices. Unfortunately, their source can't specify when Apple will introduce the technology, but their source confirms that Apple is working with several iPhone prototypes with NFC built in. But beyond the expected financial payment system, Cult of Mac's source indicates that the NFC may also be used as a portable login system:

According to our source, who asked not to be named, when a NFC-equipped iPhone is paired with a guest machine, part of the users profile includes the apps theyve purchased through the Mac App Store. The icons for their apps appear on the remote Mac, but aren't downloaded, our source said.

Users will reportedly be able to launch apps which will be downloaded on demand. Documents can then be saved and synced back to MobileMe so you can access your documents where ever you are. Once the NFC connection is broken, the apps and files are deleted from the guest computer, leaving it untouched.

The system is somewhat reminiscent of the Home on iPod feature that was originally advertised for Mac OS X Panther, but pulled at the last minute. In that incarnation, your Home directory would be saved on your iPod and "When you find yourself near a Panther-equipped Mac, just plug in the iPod, log in, and you're "home," no matter where you happen to be."

Cult of Mac claims that these features will be rolled into Lion, though can't be certain it when it will be deployed, if ever.

A Forbes blog by Elizabeth Woyke claims that despite recent rumors to the contrary, Near Field Communications (NFC) payment systems may indeed be coming to the iPhone 5.

Woyke's sources include second hand information from an entrepreneur in the NFC industry.

From what I hear, it is possible the iPhone 5 will include NFC. An entrepreneur who is working on a top-secret NFC product told me today that he believes the iPhone 5 will have NFC and cited a friend who works at Apple as a reliable source for the information.

NFC manufacturers are also expecting the iPhone 5 will arrive with an NFC payment system.

While we're sure that Apple engineers are working on the technology, this friend-of-a-friend report seems less credible than the Independent's report which claimed that Apple had informed international carriers that NFC was not coming to this year's iPhone revision. Apple is expected to launch the iPhone 5 this summer.

One of the major new features included in Apple's iOS 4.3 released last week was a new Home Sharing feature allowing users to stream music, movies, and TV shows from Macs and PCs to iOS devices. The feature is an extension of the Home Sharing feature that allowed for streaming between computers and from computers to the Apple TV.

But as noted by AppleInsider, a growing thread in Apple's support discussions reveals that a number of owners of Apple's new MacBook Pros are experiencing problems with Home Sharing compatibility. A similar thread in our own forums also covers the issue, with thirteen poll respondents in that thread reporting experiencing the issue.

Just wanted to pass along my experience with a new 17 inch MacBook Pro quad-core. They don't seem to play very well with Home Sharing. Picked mine up at the Apple store on Friday. Set up Saturday, and at first all seemed well. Was able to stream to my Apple TV 2nd gen just fine. Then, later in the day, although the Apple TV could see the name of my iTunes library, it wouldn't connect to it, or sometimes, would report that "There are no movies in this library". I tried every solution I could think of, but no dice.

Some have suggested that the iTunes 10.2.1 update released last week might address the issue, but that does not appear to be the case.

Last week it was noted that the new MacBook Pros appeared to be having difficulties interfacing with Apple 24-inch LED Cinema Display, with the pairing resulting in flickering and flashing on the external display.

The New York Times today announced that it is launching a package of digital subscriptions for access to its content, specifically revealing that it has agreed to Apple's in app subscription program that allows customers to subscribe via their iTunes Store account with Apple taking a 30% cut of revenue. The new subscription options launch on March 28th, with the one-click iTunes Store options for subscribing within iPhone and iPad apps coming available by June 30th.

The subscription plan allows for free access to a set amount of content across digital platforms. When the monthly reading limit is reached, users who are not already home delivery subscribers will be asked to become digital subscribers.

Digital subscriptions will be available in the United States and globally on March 28, 2011. The Times is launching digital subscriptions in the Canadian market beginning today in order to fine-tune the customer experience prior to the global launch.

For non-home delivery subscribers, the basic package - NYTimes.com plus Smartphone App - will start at $15 every four weeks.

Standard digital pricing is set at $15 per four-week period for full access to NYTimes.com and access through a smartphone app such as on the iPhone. Those seeking to pair NYTimes.com access with iPad app access will be charged $20 per four-week period, while those wishing to have complete access across NYTimes.com, iPhone and iPad will be charged $35 per four-week period. Introductory pricing specials will be available at the service's launch.

The New York Times will also offer individuals free access to up to 20 articles per month, and users directed to articles from search results, blog links, and social media will be able to access those articles in their entirety free of charge even if they've reached their monthly limit for free content. The "Top News" section of smartphone and tablet apps will remain free of charge at all times, and subscribers to the print edition of The New York Times will have free access to all digital content.

iLounge reports that it has discovered differences in the quality of sound captured by the microphones on various Wi-Fi and 3G-capable models of the iPad 2, with the Wi-Fi-only models demonstrating the best sound quality. The differences primarily seem to stem from the fact that the microphone opening in the center of the top edge of the device is on an aluminum surface in Wi-Fi iPads and in black plastic on 3G models, although even the GSM and CDMA models behave slightly differently.

Perhaps due to this change in materials, the Wi-Fi model offers markedly cleaner audio than that of the 3G, which sounds slightly muffled and echo-prone as a result. Curiously, we found the GSM 3G model's audio to be slightly preferable to that of the CDMA model, which seemed to suffer the issues more severely.

According to the report, the differences are most pronounced when the iPad is held facing the user, as would typically the case when using FaceTime or other video-based apps.

The microphone has been located next to the headphone jack on the top edge of the first-generation iPad, but Apple presumably centered the microphone in the iPad 2 in hopes of doing a better job of picking up sound when used with FaceTime and other apps designed to be used in a forward-facing portrait orientation. It appears, however, that the acoustical qualities of the black plastic strip along the top edge used to house the antenna in 3G-capable models results in lower performance compared to Wi-Fi models with the microphone surrounded by aluminum.

Apple CEO Steve Jobs is reported to have sent a message to Apple staff regarding the recent earthquake and tsunami in Japan. The contents of the email were posted to Chihouban.com (via Mac Otakara), and MacRumors had also received a copy of it independently. The email was said to have been sent to all Apple employees.

To Our Team in Japan,

We have all been following the unfolding disaster in Japan. Our hearts go out to you and your families, as well as all of your countrymen who have been touched by this tragedy.

If you need time or resources to visit or care for your families, please see HR and we will help you. If you are aware of any supplies that are needed, please also tell HR and we will do what we can to arrange delivery.

Again, our hearts go out to you during this unimaginable crisis.
Please stay safe.
Steve and the entire Executive Team

Apple has set up Red Cross donations through iTunes, and delayed plans to launch the iPad 2 in Japan due to the recovery efforts. We also previously reported on Digg founder Kevin Rose's email correspondence with a friend in Japan relaying Apple's efforts to support its customers and employees in the aftermath of the earthquake.

Apple has posted three new iPhone ads to their website and YouTube channel. The new ads start off with the phrase "If you don't have an iPhone" and demonstrate some specific features found on the iPhone. The three ads include:

- App Store (embedded above)
- iPod + iTunes
- iBooks

Each ad ends with "Yup, if you don't have an iPhone, well, you don't have an iPhone." The new ads seem to be trying to point out differences between the iPhone and other platforms, the biggest if which is Google's Android.

Hardmac posts a promotional image for cases claimed to be designed to fit the fifth-generation iPhone. If accurate, the design seems to suggest little change in the form factor and placement of physical features relative to the iPhone 4.

Supporting the idea of nearly identical form factors for the iPhone 4 and iPhone 5 are cases that have also appeared on the sites of other vendors with specs noting that they are for both the iPhone 4 and iPhone 5.

Case designs have been rather hit and miss over the years when it comes to revealing details of future Apple product releases, although they appear to be becoming more accurate recently, most notably with the second-generation iPad.

The new cases appear following the posting of claimed "engineering drawings" of the iPhone 5 last week appearing to show an essentially identical form factor compared to the iPhone 4, with the exception of a larger edge-to-edge screen, consistent with a front plate posted on the same site several weeks earlier.

As long ago as early January, photos and video of what was claimed to be the stainless steel antenna band from either a fifth-generation iPhone or a CDMA iPhone 4 surfaced through a parts supplier. While the antenna design and slight shift in the placement of several physical features seen on that part did turn up very soon after in the CDMA iPhone 4, the part in question also contained a SIM-card slot that is not needed or present on the CDMA iPhone 4. Consequently, it seems likely that the part may be a genuine fifth-generation iPhone part using almost the exact same design as the iPhone 4.