MacRumors

As noted by AppleInsider, Apple has seeded a fourth beta version of Mac OS X 10.6.7 to developers for testing purposes. The new version, termed Build 10J855, comes just over a week after the previous seed and reportedly carries no documented known issues.

Apple continues to ask developers to focus their testing on Mac App Store, AirPort, Bonjour, SMB, and Graphics Drivers, while the update has grown in size by over 35 MB to weigh in at 412.6 MB as a delta update.

A targeted public release timeframe for Mac OS X 10.6.7 remains unknown.

The Wall Street Journal reports that despite his medical leave of absence, Steve Jobs remained involved in Apple's strategic decision making and product development. Jobs is reportedly taking business meetings at home and on the phone. Jobs has even been recently spotted at Apple's campus.

According to the newspaper, Jobs remains involved specifically in the next iPad and iPhone products:

Among products he is continuing to work on are the next version of the iPad tablet computer, expected out in the next couple of months, and a new iPhone, expected to be released this summer, said two of these people.

Apple announced in January that Steve Jobs would be taking a medical leave of absence, leaving Tim Cook in charge of Apple's day to day operations. Jobs remains as CEO and said he would be involved in major strategic decisions for the company.

Bloomberg reports that Apple is planning to develop new models of the iPhone, including one that would be both smaller and cheaper than that current model, to aid the company in its battle against Android in the smartphone market.

Apple Inc. is working on new versions of the iPhone that are aimed at slowing the advance of competing handsets based on Google Inc.'s Android software, according to people who have been briefed on the plans.

One version would be cheaper and smaller than the most recent iPhone, said a person who has seen a prototype and asked not to be identified because the plans haven't been made public. Apple also is developing technology that makes it easier to use the iPhone on multiple wireless networks, two people said.

According to the report, the smaller iPhone could be priced at about $200 without requiring a contract, presumably paving the way for carriers to offer subsidies that could make the phone free when purchased with a service contract.

The prototype smaller iPhone is reportedly about one-third smaller than the iPhone 4, and would use many of the same components found in the current iPhone.

While Apple has aimed to unveil the device near mid-year, the introduction may be delayed or scrapped, the person said. Few Apple employees know the details of the project, the person said. Apple often works on products that do not later get released.

Rumors of an "iPhone nano" have popped up from time to time, but have been relatively quiet over the past couple of years.

The report also notes that Apple is working on dual-mode iPhone that could operate on both GSM and CDMA networks, a claim that should not be surprising given Apple's use of a dual-mode baseband chip from Qualcomm in the CDMA iPhone. Finally, Bloomberg that Apple is continuing to pursue the idea of built-in SIM cards that would allow users to easily switch between carriers via simple software settings.

Research firm IHS iSuppli today announced that it has completed its full teardown of the CDMA iPhone that launched on Verizon this week, estimating that the device carries a bill of materials cost of about $171.35, or approximately 9% less than the original iPhone 4.

Despite having nearly the same functionality and a similar bill of materials (BOM) as the previous model, the new code division multiple access (CDMA) version of the iPhone 4 carried by Verizon Wireless includes significant changes in its design and component selection, IHS iSuppli teardown analysis indicates.

The latest version of the iPhone 4 carries a BOM of $171.35, down from $187.51 for the previous model, based on a preliminary pricing estimate issued in June. When manufacturing expenses are added, the total production cost for the CDMA iPhone 4 amounts to $178.45.

While some of the difference appears to simply be due to reductions in the cost of components over time and would similarly affect the GSM iPhone 4 if it were evaluated today, Apple has made a few design changes that may have reduced costs for the company.

Most notably, with Apple's adoption of the MDM6600 "world-mode" baseband chip from Qualcomm offering integrated GPS circuitry, the company has been able to eliminate a Broadcom GPS chip that is present in the GSM version of the iPhone 4. The report also points to a revised version of the Wi-Fi combo chip module from Murata as an example of a design change adopted by Apple for the new device. The new module is smaller than the one used in the original iPhone 4 and represents further optimization by the component supplier.

Presumably unrelated to cost structures, the report also discusses Apple's modifications to the antenna design, which utilizes a separate Bluetooth/WLAN antenna isolated from the enclosure and allows the company to dedicate a portion of the frame as a diversity antenna to improve reception.

iSuppli's bill of materials cost estimates account only for the cost of the individual hardware components used in the device, with an additional amount added on to reflect manufacturing costs. The estimates do not include other costs involved in product development, manufacturing, and sales, such as research and development, software, patent licenses, marketing, and distribution expenditures.

Last week, we noted that Verizon had released updated software finally bringing Mac OS X compatibility to the Pantech UML290, one of the carrier's two 4G (LTE) modems available for customer purchase.

Just over a week later, Verizon has now delivered a new version of its VZAccess Manager to add compatibility for its other 4G USB modem, the LG VL600.

Like the Pantech UML290, the LG VL600 is priced at $99.99 with a two-year data contract. The device is also available for $169.99 on a one-year contract and $249.99 for month-to-month service.

Monthly data plans are priced at $50 for 5 GB or $80 for 10 GB, with a $10 per GB overage fee. The carrier's 4G network promises speeds ten times that of its existing 3G network, and Verizon is working to deploy full nationwide 4G coverage by the end of 2013.

Last week, we noted that Apple and Campbell's had commissioned a study that demonstrated that Apple's iAd mobile advertising platform offers advertisers more bang for their buck and greater brand recognition than traditional advertising channels such as television.

Apple may have felt it needed that data in order to entice advertisers to join the program, as a new report from TechCrunch suggests that fill rates for ad requests are dropping and the company's staffers are struggling to get advertisers to sign on following the initial high-publicity push that accompanied the service's launch last July.

Across the board, several developers I've spoken to confirm that "fill rates" for iAds dropped drastically after the New Year and have yet to recover. The fill rate - what percentage of the ad inventory is actually filled with an ad - for two separate developers plummeted from 18 percent to 6 percent. And in a few instances for some newer apps, none of the ad slots were getting filled, compared to nearly complete fill rates from other mobile ad networks. Others report better fill rates but as one developer says, "They have definitely come down."

The report isn't the first to note a significant drop in fill rates with the new year, and it is unclear whether the result is due to a decline in advertiser participation because of dissatisfaction with the program, expected seasonal variations in advertising spending, or simply Apple struggling to fill an increasing number of available slots buoyed by a burst of sales of iOS devices over the holidays.

But TechCrunch's report delves further into the situation, noting that the initial wave of advertisers were brought on board with Steve Jobs and other key executives personally meeting with CEOs of other companies to seal the deal, and now that that initial splash is over, the iAd program is becoming a harder sell.

After selling the initial campaigns, the relationships were dumped into the laps of junior account managers in Apple's advertising business (which came out of Apple's $275 million acquisition of Quattro Wireless last year). They are being tasked to get renewals this year from ad agencies and brands or equal or greater amounts. But the experiment is over (advertisers can now see how the ads perform) and these junior salesmen don't have access to the CEOs. They need to talk to their counterparts at ad agencies and brands, who can't spend $1 million on a mobile ad campaign so easily. One ad agency executive tells me that the iAd salespeople are suddenly calling a lot more and becoming very aggressive in pushing for renewals.

Other issues such as a lack of cross-platform compatibility and pricing structures have also been cited as reasons for advertisers being wary of coming on board, but together it appears that Apple may be having problems expanding the program rapidly enough to satisfy the growing number of apps and devices looking to tap into iAds.

IDG News Service reports that German researchers have demonstrated how a knowledgeable thief could bypass the iPhone's passcode locking to upload a script capable of revealing entries from the device's password keychain system, potentially giving the hacker access to sensitive passwords stored on the device.

In a video that demonstrates the attack, the researchers first jailbreak the phone using existing software tools. They then install an SSH server on the iPhone that allows software to be run on the phone.

The third step is to copy a keychain access script to the phone. The script uses system functions already in the phone to access the keychain entries and, as a final step, outputs the account details it discovers to the attacker.

The attack works because the cryptographic key on current iOS devices is based on material available within the device and is independent of the passcode, the researchers said. This means attackers with access to the phone can create the key from the phone in their possession without having to hack the encrypted and secret passcode.

According to the report, the researchers were able to obtain passwords for Gmail accounts, Microsoft Exchange accounts, voicemail access, VPN and Wi-Fi network passwords, as well as passwords for some applications.

The researchers note that gaining access to an email password makes it easy for hackers to then reset passwords for other types of accounts, while compromised passwords for corporate networks can obviously result in security issues for businesses.

The exploit obviously requires a fair amount of technical knowledge, and thus shouldn't be an issue for the vast majority of users whose devices become lost or stolen. But the exploit could be used in targeted attacks by those specifically seeking to gain access to sensitive systems.

Last night, we noted that lines were beginning to form for the Verizon iPhone, which went on sale this morning at Apple and Verizon retail stores, as well as Best Buy and select Wal-Mart stores. But in the light of morning, lines are short in many locations, particularly at Apple stores.

With much of the country seeing frigid overnight temperatures, some shoppers may have opted to not stand in the cold while others may have taken advantage of home delivery options for the device, but lines still seem much shorter than expected. CNET is running a live blog with staffers in both New York City and San Francisco, and flagship Apple stores in both locations saw nearly no line ahead of early openings at 7:00 AM local time.

New York 6:50 a.m. ET: It's 18 degrees here in New York City, and there are now eight people in line at the Fifth Ave. Apple store. Queens resident Akira Sawada, 32, is first in line--he arrived at 5 a.m. There are more Apple employees inside the Apple store than there are outside.

New York 7:07 a.m. ET: People are in the Apple store. The line of about 10 people was quickly ushered in at 7 a.m. We are now waiting to talk to people who are walking out of the store.

A similar situation was seen in San Francisco, where cold temperatures couldn't be blamed for low turnout. According to CNET, only two people were in line at Apple's Stockton Street flagship store just minutes before opening, with "literally more Apple Store employees, police officers and reporters--each--than people in line to buy iPhones."

We've received sporadic reports of significantly longer lines at some Verizon stores, but still nowhere near what many had expected.

Engadget reports that Apple's latest iOS 4.3 Beta actually includes hidden references to gaming on the Apple TV.

Several references have been found pertaining to "ATVGames" and "ATVThunder" that point to a controller of some sort, leaderboards (think Game Center), a way to schedule games (multiplayer?), and a store front (think App Store, iTunes).

Engadget speculates that the Apple TV could be used as a streaming gaming platform, similar to the OnLive service, where games are streamed rather than stored locally. The Apple TV does have some local storage (8GB) which is also used for the OS and video buffering.

The Apple TV relaunched in September with an all new compact design. The new Apple TV uses the same A4 processor as the iPhone and iPad and also shares the same operating system. Many expect the Apple TV to eventually get Apps like the other iOS devices, and it looks like Apple might have games specifically planned for the device.

The Verizon iPhone finally launches in-stores on Thursday, February 10th at 7 a.m. Since this is essentially the same iPhone that has been on the AT&T network since last year, we don't expect there to be nearly as long a line for the original launch. Still, it seems some people aren't taking any chances.

The Orlando Sentinel posts a photo of the first person in line at a Florida Verizon Wireless store.

Marcia Caldwell parked her chair outside the Verizon Wireless store in Winter Garden shortly after 4 p.m. Wednesday -- 15 hours before she can buy Verizon's new iPhone 4.

Caldwell is presently on an iPhone 3GS with AT&T and will be switching to Verizon to get better coverage at her home.

Also, Apple and Verizon seem to be preparing for some lines:

A few random tweets indicate long lines are already forming in some locations. If you are standing in line, send photos to webmaster@macrumors.com or post in the comment thread.

Even though Apple hasn't yet even announced the 2nd generation iPad, we are already hearing the first rumors of the 3rd generation iPad. Those rumors seem to suggest that Apple is planning on accelerating the iPad's release cycle with the 3rd generation model arriving as early as this fall (September).

The buzz started when Daring Fireball's John Gruber mentioned that the new HP tablet may run up against the iPad 3's launch:

If my theory is right, they're not only going to be months behind the iPad 2, but if they slip until late summer, they might bump up against the release of the iPad 3.

Gruber has been known to casually mention insider knowledge which he admits. In this case, however, he follows up to say that this iPad 3 comment was simply a guess, and not based on any actual knowledge. He gives his reasoning for such a quick turnaround between revisions:

Thus, my gut feeling is that Apple will move the iPad to a September release schedule, alongside the iPods. But they wouldn't want to wait over a year and a half from the announcement of the original iPad to announce the second one -- not with these stakes, and not with so many serious competitors trying their best to catch up.

While that may have been the end of it, TechCrunch claims that they have independently heard that Apple will indeed be revising the iPad this fall:

We've now heard that this "fall surprise" is related to this would-be iPad 3. We don't have any more concrete information beyond that. But, as of right now, the plan is apparently to release one iteration of the iPad in the next few weeks. And then blow the doors open with another new version in the fall.

Apple typically refreshes its product lines in predictable patterns. The new iPhone tends to be announced around WWDC of each year, while the iPod line is refreshed around September. This has been the first year of the iPad, so everyone is expecting them to follow a yearly pattern around April. It seems Apple is following that timeline for the first revision, but may end up changing those rules this fall.

HP's acquisition of Palm may finally be bearing fruit, as an ongoing media event today has revealed a significant reboot of the company's webOS-based mobile strategy headlined by the TouchPad, a new tablet device similar in many respects to Apple's iPad.

Running on a dual-core Snapdragon processor at 1.2 GHz, the TouchPad offers 16 or 32 GB of storage, Wi-Fi connectivity, and support for gyroscope, accelerometer, and compass functions. The TouchPad offers essentially the same 9.7-inch 1024 x 768 display used in the current iPad, as well as a 1.3-megapixel front-facing camera and stereo speakers.

HP's TouchStone wireless charging solution has also been augmented to support the new devices, not only offering charging capabilities but also supporting wireless sharing of data between devices. Multitasking is also a key feature of the webOS experience, with applications showing as "cards" that can be easily flicked out of the way to switch to a different application.

Wi-Fi models of the TouchPad will launch this summer, with 3G and 4G models to follow. There is no word yet on pricing.

The company also announced a pair of new webOS smartphones: the Veer, which offers a credit-card sized form factor with a slide-out keyboard, and the Pre 3, the next-generation version of Palm's debut webOS device offering a 1.4 GHz Snapdragon processor.

HP concluded its presentation by noting that the new wave of devices is just the beginning for webOS, which will be coming to other connected devices such as printers and even PCs in the future. The company will announce more details on that effort later this year.

Adobe yesterday announced that Flash Player 10.2 has exited the beta testing stage is now available for general consumption for Mac, Windows, and Linux. As previously noted, Flash Player 10.2 includes Adobe's new "Stage Video" technology to leverage hardware acceleration for smoother playback with significantly lower CPU consumption.

Stage Video lets websites take advantage of full hardware acceleration of the entire video pipeline. This builds on the H.264 hardware accelerated decoding in Flash Player 10.1. Stage Video hardware acceleration means that Flash Player can play even higher quality video while using dramatically less processing power, giving users a better experience, greater performance, and longer battery life. In our testing across supported systems, we've found it's up to 34 times more efficient.

Put another way, Flash Player using Stage Video can effortlessly play beautiful 1080p HD video with just 1-15% CPU usage on a common Mac or Windows computer* - working across platforms and browsers, it will enable the best video experience for the most people.

Stage Video compatibility does require that website update the video players used on their pages, so it may take some time for the improvements to become widespread, but major video-focused sites such as YouTube and Vimeo are already well on their way to supporting Stage Video.

Other notable improvements in Flash Player 10.2 include support for multiple-monitor full-screen display to allow for multitasking, improved sub-pixel text rendering, and support for custom native mouse cursors.

Wal-Mart today announced that it wil offer the Verizon iPhone for sale in nearly 600 of its retail store locations, joining Apple, Verizon, and Best Buy as a launch retailer for the device at its debut for general availability.

"We're excited to bring iPhone 4 on the Verizon Wireless network, one the most anticipated mobile phone launches in recent history, to Walmart customers," said Gary Severson, senior vice president, Home Entertainment, Walmart U.S. "As customers continue to embrace smart phone technology, we've added nearly 20 smart phone models to our assortment, including the new Verizon Wireless iPhone 4."

Verizon had noted in its press release announcing record-breaking pre-sales for the iPhone that Wal-Mart would be carrying the device, but it had been unclear how many locations would be carrying it at launch. Still unknown is exactly which Wal-Mart stores will have the Verizon iPhone tomorrow, so customers should call their local stores to determine availability.

Apple and Verizon have already opened their websites to the general public for iPhone orders, with availability set for tomorrow. Both companies are currently showing shipping estimates of February 18th for new orders, although orders may presumably ship sooner than that as availability allows.

Verizon and Apple have opened their website to accept orders for the Verizon iPhone. The Verizon iPhone was available for pre-orders for existing customers last week, but is now available for the general public.

The Verizon iPhone will be available in stores on February 10th.