MacRumors

Bloomberg reports that Apple has continued to reduce the buy-in fee for its iAd mobile advertising service, dropping package prices for mainstream advertisers from the original $1 million commitment down to just $300,000 in some cases.

Apple Inc.'s iAd mobile-advertising business has cut rates by as much as 70 percent as some marquee clients are using rival services, two people with knowledge of the matter said, signaling the company is struggling to parlay its technology leadership into success in the ad industry.

When Apple rolled out iAd a year ago, companies such as Citigroup Inc. and J.C. Penney Co. were being charged $1 million or more to run ad campaigns. Today those brands aren't using iAd, and Apple is offering packages for as little as $300,000, said the people, who asked not to be named because the rates are private.

Just a few months ago, Apple was reported to have cut the buy-in fee down to $500,000, but even that level has apparently not been enough to keep existing advertisers on board and bring on new ones to meet the ever-growing number of ad slots available. The new $300,000 rate is said to be being offered to companies willing to package together multiple campaigns for iAd.

For its part, Apple touts the over 100 campaigns already pushed through on iAd and notes that 20 companies have used the service over the past month with another 50 set to debut in the coming months. But still, app developers are only reporting fill rates in the range of 5-15%, limiting the potential income available through the iAd program.

According to the Bloomberg report, advertisers are turning to Google's AdMob, Millennial Media, and Greystripe as cross-platform advertising services competing against the iOS-only iAd. With the growing strength of Android, high buy-in fees for iAd, and developer dissatisfaction with iAd's performance, advertisers are increasingly interested in addressing multiple platforms, a key feature not available with iAd.

Apple is not standing still, having recently hired a prominent former advertising agency executive to help draw in brands to the iAd program and last December debuted its iAd Producer software to make it easy for advertisers to design their ads. But it remains to see whether these moves along with iAd's Apple prestige and sleek appearance can overcome the limitations inherent in the program.

Earlier this week, the browser-based JailbreakMe.com solution went live once again, bringing a simple new method to jailbreak a number of iOS devices including the iPad 2. The tool has proven popular, with over one million users already having taken advantage of it.

Similar to earlier browser-based jailbreak mechanisms, the latest version takes advantage of a flaw in the way Safari handles PDF files, a vulnerability that could also be exploited by malicious parties. Consequently, it had been expected that Apple would move relatively quickly to patch the hole once it was revealed by the jailbreak procedure.

According to the Associated Press, Apple has indeed confirmed that it will be patching the hole in a future software update, but declined to provide a timeframe for the release of the update.

Apple Inc. spokeswoman Bethan Lloyd said Thursday the company is "aware of this reported issue and developing a fix that will be available to customers in an upcoming software update."

She declined to specify when the update would be available.

Apple's statement comes after Germany's information technology security agency issued an explicit warning about the "critical weaknesses" in iOS that could result in malware being deployed through infected PDF files.

Fully aware of the potential implications of malware authors exploiting the hole, the jailbreak community has already developed a fix for the issue, which was released into the Cydia Store for jailbroken devices alongside the new technique. Users who have jailbroken their devices, even through the new JailbreakMe.com technique, can thus patch the vulnerability, while non-jailbroken devices will have to wait for Apple's solution to be released.

Apple today announced that the App Store for iOS devices has surpassed 15 billion downloads, having paid out over $2.5 billion to developers and sold over 200 million iOS devices.

Apple today announced that over 15 billion apps have been downloaded from its revolutionary App Store by the more than 200 million iPhone, iPad and iPod touch users worldwide. The App Store offers more than 425,000 apps and developers have created an incredible array of over 100,000 native iPad apps.

"In just three years, the revolutionary App Store has grown to become the most exciting and successful software marketplace the world has ever seen," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing. "Thank you to all of our amazing developers who have filled it with over 425,000 of the coolest apps and to our over 200 million iOS users for surpassing 15 billion downloads."

The milestone puts the App Store essentially on par with Apple's iTunes Music Store, which the company announced as having reached 15 billion downloads at its Worldwide Developers Conference one month ago.

Apple held a private Final Cut Pro X (FCP X) briefing for enterprise contracts in London on July 6th. One first hand report has been posted to the internet detailing what Apple discussed during the event. Alex4d summarizes tweets by @aPostEngineer which reveals the following points:

1. FCP XML in/out is coming via 3rd party soon…no FCP 6/7 support project support coming ever it seems…
2. Ability to buy FCP7 licenses for enterprise deployments coming in the next few weeks…
3. FCPX EDL import/export coming soon…
4. FCPX AJA plugins coming soon for tape capture and layback…capture straight into FCPX [events].
5. XSAN support for FCPX coming in the next few weeks…
6. FCPX Broadcast video output via #Blackmagic & @AJAVideo coming soon…
7. Additional codec support for FCPX via 3rd Parties coming soon…
8. Customizable sequence TC in FCPX for master exports coming soon…
9. Some FCPX updates will be free some will cost…

Notably, the event reveals that Apple is working on allowing existing Final Cut Pro 7 enterprise deployments to purchase additional licenses. One of major complaints about the FCP X launch had been Apple's discontinuing sales of Final Cut Pro 7 even before video professionals had been able to become comfortable with FCP X.

Final Cut Pro X was released as an App Store title on June 21st for $299. Apple later posted a FAQ to address concerns of video professionals, and has promised a number of new features and fixes in the coming months.

Update: Apple has apparently contacted the tweeter with this clarification:

Apple have contacted me in regards to my tweets…and wanted to make sure the facts are right…

2. Ability to buy ADDITIONAL FCP7 licenses for EXISTING volume licensed deployments is something Apple are only looking into at this stage.

4. FCPX AJA plugins coming soon for tape capture and layback…capture straight into FCPX events. Will not be a plugin but an AJA application.

Expanding on its report from earlier today regarding Apple's preparations toward a thinner and lighter next-generation iPhone set for launch in the September timeframe, The Wall Street Journal now reports that Apple is working on more ambitious plans for the 2012 iPhone, experimenting with a number of changes including a "new way of charging" the device.

Investors expect a bigger boost to Apple's phone business next year. People briefed on Apple's plans said the company is planning a major iPhone revamp then, with one person saying the company has been experimenting with features such as a new way of charging the phone.

It is unclear exactly what charging mechanisms Apple is exploring, but it is possible that the company is considering using induction charging or some other similar wireless system that would negate the need to plug in a cable. Combined with wireless syncing coming in iOS 5, wireless charging could truly make the iPhone a cable-free device.

Today's report from The Wall Street Journal also reiterates earlier claims from a variety of sources, including the Journal itself, regarding Apple's work on a less expensive iPhone, noting that the form factor in testing is reported to have an edge-to-edge screen.

Apple has also been working on a less-expensive phone with new features such as an edge-to-edge screen, according to this person.

Rumors of a smaller iPhone, sometimes dubbed the "iPhone nano", have been circulating for a number of years, and there still appears to me no stated timeframe for a release of such a product.

Bungie's classic first person shooter Marathon [iTunes] is now on the App Store for the iPad. The free download offers 27 levels divided into 6 chapters. The interface has been modified to accommodate touch screen interaction of the iPad.

Marathon was first released by Bungie Software for the Macintosh in 1994. It was a Mac exclusive launch and was released shortly after Doom was first released for the PC. Bungie later went on to be acquired by Microsoft and released the popular Halo game series for the Xbox.

The iPad version of the game started off as a personal project by iOS developer Daniel Blezek but was later officially sanctioned by Bungie. The iPad version of the game is free to download, but an in game store offers two in-app purchase options. The first is called "HD Mode" for $3.99 and features new high resolution textures to replace the walls, floors and liquids. The second is Master Chief Mode for $0.99 which offers the ability to start on any level, infinite ammo, all weapons, instant recharge, invulnerability and instant save.

A federal judge has denied Apple's preliminary injunction demanding Amazon stop using the term "appstore" for its Android marketplace. Apple sued Amazon back in March and asked U.S. District Judge Phyllis Hamilton to immediately order Amazon to cease using the term. Apple believes the term is trademark protected.

Several weeks ago, the judge in the case expressed her skepticism regarding Apple's argument that "App Store" should be a non-generic trademark and today ruled that Apple has not thus far established "a likelihood of confusion" between Apple and Amazon's app stores.

A preliminary injunction is an order by the court to restrain a particular activity, usually ordered if the judge believes there is substantial likelihood of success on the merits of the case, or if there is a substantial threat of irreparable damage if the injunction is not granted, among other reasons

Apple believes use of the term by other companies can "confuse and mislead customers." Apple has numerous cease and desist letters to companies using the term, including the owner of pcappstore.com, and open source startup Amahi.

Judge Hamilton set October 2012 as a trial date.

Earlier this year, Amazon launched its Cloud Drive and Cloud Player services, offering users the ability to store music and other digital content on Amazon's servers for access from a variety of Internet-connected devices. With Apple's iCloud announcement last month, some have been wondering whether Amazon might tweak its offerings to compete with iCloud.

In response, Amazon today announced several changes that do exactly that, expanding the music storage capabilities of its Cloud Drive service and launching an iPad-optimized Cloud Player. Among the specific changes:

- Unlimited music storage with any paid plan: Users signing up for any paid storage plan, including the lowest tier priced at $20 per year for 20 GB of space, automatically receive unlimited storage space for music in MP3 and AAC formats. The change leaves the full paid storage amount available for other content such as photos and documents. This offer is available for a limited time.

- Free storage of all Amazon MP3 Store purchases: Most applicable for those users opting to stick with the free 5 GB plan, Amazon will now store all past and future Amazon MP3 Store purchases free of charge and without counting toward the 5 GB limit. The feature had previously been limited to purchases made since the debut of Cloud Drive and Cloud Player.

- Cloud Player for iPad: Amazon has launched an iPad-optimized web player for music stored through the Cloud Drive service. Despite a lack of official support for iOS devices until now, Amazon Cloud Player has been partially functional, but the new changes should significantly increase usability for iPad customers.

The "iTunes in the Cloud" component of iCloud is partially active now, allowing users to automatically download newly-purchased content to all iCloud-enabled devices and to support easy re-downloading of previously-purchased iTunes Store content. The full iCloud service is set to debut later this year alongside iOS 5, and will provide users with 5 GB of free storage, not including purchased music, apps, books, and Photo Streams. Additional storage will be available at as-yet unannounced prices.

The full iCloud launch will also see the debut of iTunes Match, a $24.99/year service that will allow users to store their entire music collections in the cloud for syncing across devices, either by matching to iTunes Store tracks or by uploading directly into the cloud.

As with the debate over whether the next-generation iPhone should tentatively be referred to as an "iPhone 5" or "iPhone 4S", observers are also differing in their opinions on Apple's next-generation iPad. While Apple has so far used the yearly upgrade cycle that has been relatively among the company's mobile devices for the iPad, there have been rumors that Apple is planning to release an updated iPad later this year. That update would come only about six months or so after the release of the iPad 2.

And while many reports have taken to calling the rumored device the "iPad 3" as a logical extension of Apple's naming scheme so far, a new note from FBR Capital Markets analyst Craig Berger (via International Business Times) has now coined a new term for the next-generation iPad: the "iPad 2 Plus".

Berger's note echoes a report from last week claiming that Apple is gearing up for a fall launch of the next-generation iPad, which will include a higher-resolution display.

"There are some indications from the supply chain that Apple may look to introduce an 'iPad 2 Plus' device as they put out request for quotes from various component suppliers for this marginally different device," FBR Capital Markets analyst Craig Berger wrote in a note to clients.

Apple may launch the device in late 2011, the analyst said, citing supply-chain contacts.

Berger's view of the next-generation iPad as a tweaked iPad 2 is essentially the reverse of theories that initially appeared earlier this year in the lead-up to the iPad 2 launch. At that time, some observers had considered what would become the iPad 2 to be an interim release to carry Apple through until it could release a more significant update later in the year.

But with Apple actually having made fairly substantial improvements in the iPad 2 with the addition of dual cameras, a 33% thinner enclosure, and processor and graphics enhancements, Berger's report takes the view of the next-generation iPad being an enhanced iPad 2 rather than a full iPad 3 update.

Regardless of the name attached to the rumored next-generation device, a shift to a higher-resolution display approaching "Retina" resolutions in the range of 250-300 ppi would of course be a substantial improvement even on its own, although it is unclear just what other enhancements would be included in the new iPad.

Spotify is officially coming to the United States. Domestic visitors to Spotify.com are now redirected to a signup page where users can enter an email address to "be one of the first to get Spotify."

Spotify is a Sweden-based streaming music service that offers music from a number of major and independent record labels. It has hitherto been available only in western Europe.

There are free subscriptions limited by hours of listening time, and then paid subscriptions that offer features such as offline mode, the ability to download songs to iPods and more. Subscription fees range from €5 to €10 per month. Spotify recently raised a $100 million venture round at a $1 billion valuation.

Spotify can be used as a replacement for iTunes, iTunes Match and the iTunes Store. Instead of letting users listen to music they have purchased or acquired from other sources, Spotify allows listeners to stream any songs Spotify has licensed.

It is quite a bit more expensive than iTunes Match will be, costing €60-€120/year in Europe, versus $25/year for iTunes Match. US pricing has not been announced yet.

Sign up on Spotify.com to get an invite when the site finally opens.

The New York Times reports that former Flextronics executive Walter Shimoon has pleaded guilty to two counts of conspiracy to commit wire fraud and one count of security fraud over his role in leaking insider information on Apple's iPhone and iPad plans to research firm Primary Global Research.

Flextronics manufactured chargers for the iPhone, giving Shimoon access to nonpublic information on Apple's internal sales forecasts for the device, which he then shared with Primary Global Research in his role as a "consultant" for the firm.

In addition to sales figures, prosecutors said Mr. Shimoon also tipped a cooperating witness to Apple's plans to develop a new iPhone. But later in the call, according to a transcript from prosecutors, Mr. Shimoon leaked word of an even more secret product in development, the iPad, which at the time was referred to as K48.

"So, you can get, at Apple you can get fired for saying K48...outside of a, you know, outside of a meeting that doesn't have K48 people in it," he told a cooperating witness, according to taped calls. "That's how crazy they are about it."

Primary Global Research has been the target of a federal investigation into "expert networks" that solicit employees offering insider information and provide that nonpublic information to Wall Street money managers to facilitate insider trading. A number of arrests have been made over the firm's collection of insider information on Apple, Dell, AMD, and other tech companies.

The Wall Street Journal reports that Apple is indeed preparing a new iPhone for a launch during the third quarter of this year, with an initial production target of 25 million units through the end of the year.

"Apple's sales estimates of the new iPhone is quite aggressive. It told us to prepare to help the company meet its goal of 25 million units by the end of the year," said another person at one of Apple's suppliers. "The initial production volume will be a few million units... we were told to ship the components to assembler Hon Hai in August."

Countering claims that the next-generation iPhone will be nearly identical in appearance to the iPhone 4, the Journal's sources indicate that the new device will be "thinner and lighter" and that Apple's manufacturing partner Foxconn/Hon Hai is having difficulties with yield rate on the new device due to it being "complicated and difficult to assemble."

Two of the people, however, cautioned that shipments of the new iPhone could be delayed if Hon Hai can't improve its yield rate as the new iPhone is "complicated and difficult to assemble."

Reports over the past few months have been pointing to a September release for the next-generation iPhone, which has been said to carry Apple's A5 processor found in the iPad 2, an 8-megapixel rear camera, and a baseband chip from Qualcomm to support both GSM and CDMA networks.

The JailbreakMe.com website has returned to offer an entirely browser-based jailbreak tool for iOS devices including (for the first time) the iPad 2.

Jailbreaking is a process by which Apple's iOS devices can be opened up to allow for installation of non-Apple-approved applications, customizations and file access. Apple officially disapproves of jailbreaking and has even warned users that these unauthorized modifications can cause "instability, disruption of services, and compromised security." Still, a large and active jailbreak community has emerged over the years since the iPhone's introduction.

A Dev-Team blog post outlines the supported configurations for JailbreakMe:

- iPad1: 4.3 through 4.3.3
- iPad2: 4.3.3
- iPhoneGS: 4.3 through 4.3.3
- iPhone4: 4.3 through 4.3.3
- iPhone4-CDMA: 4.2.6 through 4.2.8
- iPod touch 3g: 4.3, 4.3.2, 4.3.3
- iPod touch 4g: 4.3 through 4.3.3

The JailbreakMe site is unique in that it allows users to jailbreak their devices entirely using the Safari browser and without downloading any additional software. The site itself also offers a Frequently Asked Questions page that reassures users that the jailbreaking process is fully reversible with a simple restore and that there is no risk for any permanent damage. Still, we'd recommend users proceed with caution. The installation process involves simply visiting JailbreakMe from a supported iOS device and tapping "Free/Install" button to initiate the jailbreak.

The browser-based jailbreak process again exploits a flaw in Apple's PDF renderer that allows the tool to open up the device. Just like the previous vulnerability, Apple is expected to patch this one shortly. This same vulnerability could be exploited by malicious parties as well. The programmers of JailbreakMe are also providing a patch to close the security hole behind them for jailbroken users. Users of non-jailbroken iOS devices, however, will have to wait until Apple provides a fix.

More information and answers can be found in our respective "Hacks" forums for iPhone, iPod touch, and iPad.

The authorized biography of Steve Jobs, announced earlier this year and scheduled to be released by Simon & Schuster in March 2012, has a new title.

According to Fortune, the old title, iSteve: The Book of Jobs, chosen by the publisher's publicity department, wasn't a favorite around author Walter Isaacson's household. Isaacson has succeeded in getting a new title approved:

In 2010, it was first reported that Steve Jobs had agreed to participate in an authorized biography. The book is due on March 6th, 2012 and is already available for pre-order from Amazon.

(Photo by Flickr/Joi Ito)