MacRumors

While Apple has been widely expected to introduce a front-facing camera in the next-generation iPad to support FaceTime video chatting, the addition of a rear-facing camera has been less certain, with some observers skeptical of the functionality of such a feature on a device with a much larger form factor than pocket-sized smartphones.

Evidence for a rear-facing camera in the next-generation iPad has continued to grow, however, amidst supplier claims made in late October and claimed case leaks surfacing just yesterday.

Reuters now adds its voice to the mix, becoming the first mainstream news outlet to report that the updated iPad will include both front- and rear-facing cameras.

Component suppliers for Apple Inc's iPad are gearing up for a new round of production in the first quarter, sources said on Friday, with one saying the product will be a revamp of the popular tablet computer including front- and back-mounted cameras.

The report cites three sources, two of which would only confirm a fresh round of production set to begin early next year for components used in the current iPad, while the third source reported that the ramp-up is in fact for a new version of the iPad featuring two cameras. One of the sources has also indicated that the next-generation iPad will be slimmer and offer a higher-resolution display than the current model.

Update: Reuters has updated its article to report on another source claiming that Apple is developing a smaller version of the iPad.

A separate supply chain source said Apple was preparing a significantly smaller iPad that is almost half the size of the current model. The current iPad has a 9.7-inch screen.

While rumors of a smaller iPad had circulated earlier this year, Apple CEO Steve Jobs derided the 7-inch tablets competitors are bringing to the market, calling the devices too small and "dead on arrival". Jobs has been known to throw competitors off balance by denying interest in certain features (such as video on iPods) even while the company was working to bring them to market, but Jobs' comments about the smaller tablet form factor were particular vehement in their claims that a 7-inch display is simply too small to provide a worthwhile tablet experience.

Earlier today, Apple released its "iTunes Rewind 2010" feature in the iTunes Store, offering a look at what the company has judged to be the best music, TV shows, apps, movies, audiobooks, and podcasts of 2010. An extension of Apple's weekly "Rewind" podcast, the feature offers best-of selections in numerous sub-categories within each type of media. Among the notable winners:

Apps
- iPhone App of the Year: Hipstamatic
- iPhone Game of the Year: Plants vs. Zombies
- iPad App of the Year: Flipboard
- iPad Game of the Year: Osmos for iPad

Music
- Artist of the Year: Eminem
- Album of the Year: "Brothers", The Black Keys
- Best New Artist: B.o.B.

In mid-October, it was reported that warehouse club chain Costco would cease carrying iPods after it lost out in an expansion of iPad availability that saw its rival Sam's Club and other retailers such as Target and Wal-Mart gain distribution rights for the popular tablet device. In subsequent weeks, observers noted Apple's products beginning to disappear from Costco's stores.

The Seattle Times reports that the parting of ways between Apple and Costco has been officially confirmed, with the two companies coming to a "mutual agreement" to end their long-standing relationship.

The chain is phasing out Apple products, per a mutual agreement between the companies, Galanti told The Seattle Times. Costco had sold iPods and pre-loaded iTunes cards for years, although never at huge discounts; and Apple never allowed Costco to sell its products online like other retailers, he said. "In the past couple months, we agreed to wind down."

Apple spokeswoman Amy Bessette said the company has no comment.

Apple's firm hold over pricing for its products and the deep discount pricing of warehouse clubs such as Costco have been somewhat at odds over the years, with the opposing sides reaching a middle ground of slight discounts on Apple products appearing at the club chains.

All Things Digital reports on new research from ad firm Chitika predicting that the iPad will account for over 2% of all Web traffic in North America by the end of next year.

As of this month, the iPad accounts for 0.83 percent of all traffic on Chitika's network, research director Daniel Ruby tells me. And at current growth rates, which have been steady since the device's launch, it should hit 2.3 percent by the end of next year.

Chitika offers an extensive ad network serving over three billion ads per month on over 100,000 sites, and thus serves as a reasonable gauge of Web traffic in general.

Ruby also notes that the iPad is already matching Linux in terms of Web market share in North America according to Chitika's numbers. A report several months ago indicated that iOS as a whole had surpassed Linux on a global usage share basis, but did not break out iPad-specific numbers.

Data from the third quarter of 2010 released earlier this week estimated that the iPad represents 8% of worldwide mobile PC sales, nearly double the share of Apple's Mac notebook lines.

A pair of images showing claimed cases for the next-generation iPad have surfaced, with the images and accompanying information suggesting that the device may sport both a rear-facing camera and an SD card slot.

One image comes from Shenzhen MacTop Electronics (via iLounge) and depicts the rear shell of a white case claimed to be for the next-generation iPad. An opening in the top left corner of the case suggests that, if the case design is based on actual knowledge of the product, the next iPad will feature a rear-facing camera.

A front-facing camera has been widely expected to be included in the next-generation iPad as Apple seeks to expand availability of its FaceTime video chat service, but there have been conflicting reports as to whether the company will also include a rear-facing camera.

The case also features an opening on the side in the location of the mute switch and volume rocker on the present model, as well as an opening in the center of the bottom, presumably for the dock connector. A second, larger opening is located to the left of the dock connector, in the present location of the device's speaker.

A second image, posted at Kodawarisan [Google translation], shows a pair of back shells in white and black for cases also claimed to be for the next-generation iPad. As in the other image, these cases show an opening for a rear-facing camera in the top left corner.

Also visible is a hole at the right side of the top edge of the case in the location of the headphone jack on the current model, as well as a side opening in the location of the current mute switch and volume rocker, although the opening appears smaller than would be required for the present layout. While accommodation for the dock connector is not readily visible in this image, the mysterious large opening to the left of the dock is present.

Interestingly, the description accompanying the image makes mention not only of a FaceTime camera but also an SD card slot. It is unknown, however, whether the opening at the bottom left is intended to be for such a slot. The current iPad lacks an SD card slot, with Apple offering a $29 kit providing a pair adapters to allow users to move photos to their iPads via either SD card or USB through the device's dock connector.

Update: Repair firm Powerbook Medic has discovered another set of claimed next-generation iPad silicone cases also showing a hole for a rear-facing camera and a rectangular cutout serving an unknown purpose in the same locations as the other cases.

Update 2: A video showing off several versions of the "Crystal Case" previously cited by iLounge has also been posted.

Update 3: M.I.C gadget has posted even more photos of silicone cases claimed to be for the next-generation iPad.

Over the last few months, Apple has taken some heat for its decision to continue utilizing Intel's Core 2 Duo processors in its smaller notebook models, including the 13-inch MacBook Pro, MacBook and new MacBook Air, while the larger MacBook Pro models have incorporated more powerful Core i5 and i7 processors. Rather than it being a cost-saving move or an intentional crippling of the cheaper machines, however, the decision is related to a dispute between Intel and NVIDIA that has prevented NVIDIA from offering integrated graphics packages for Intel's Arrandale processors.

Given that design constraints inherent in the smaller notebook sizes prevented Apple from offering discrete graphics packages to pair with Intel's i-series processors, the company was left with deciding between using Intel's inferior "HD" integrated graphics with the latest i-series processors or sticking with the Core 2 Duo processors for which NVIDIA could provide its own integrated graphics solution. Apple ultimately decided that "killer graphics" would address the biggest performance bottleneck and thus opted to pair the Core 2 Duo with a custom-built GeForce 320M graphics package from NVIDIA in its smaller notebooks.

Earlier this week, it was reported that Intel and NVIDIA have settled their dispute, and while the details of the settlement have not been made public, many observers have hoped that it could allow Apple to use a package of Intel's latest processors with NVIDIA integrated graphics for better performance.

But a new report from CNET claims that Apple, impressed by Intel's forthcoming Sandy Bridge processors that will offer enhanced integrated graphics capabilities, has already decided to adopt the all-Intel solution for its smaller notebooks, squeezing out NVIDIA.

Intel's newest processor, to be formally announced January 5 at the Consumer Electronics Show, will find its way into new MacBooks that will supersede current models, according to industry sources familiar with Apple's plans. Current MacBooks use Nvidia graphics chips along with Intel Core i series and Core 2 Duo processors. But due to the enhanced graphics capabilities of Sandy Bridge, Apple--at least for now--has determined that it will not continue using Nvidia's graphics processing units (GPUs) in some models.

According to the report, Apple is even shifting at least partially away from NVIDIA in its larger MacBook Pros, opting to include graphics solutions from AMD in those models. It is unclear, however, whether NVIDIA options might still be available on those machines.

One question that has remained about Apple's potential adoption of Sandy Bridge is whether Intel will offer support for Apple's OpenCL specification that greatly enhances system performance in some cases by offloading tasks from the processor to the graphics hardware. While NVIDIA has supported OpenCL for some time, Intel is only just now stepping up with support for the framework on the CPU side, and CNET's sources indicate that the company is in fact also working on OpenCL for Sandy Bridge's graphics component. Should Intel be able to offer full OpenCL compatibility on Sandy Bridge, it appears that Apple stands to see significant benefits from full adoption of the platform in its notebooks.

TouchArcade reveals a first hands-on with an upcoming Commodore Amiga emulator from mobile developer Manomio. Manomio is the developer behind the Commodore 64 emulator for iOS that made headlines after it was originally rejected from the App Store. Manomio's Commodore 64 emulator eventually returned to the App Store after some favorable changes in App Store policy.

As with its Commodore 64 emulator, Manomio is legally licensing the required intellectual property and is working with individual developers to bring popular Amiga titles to the App Store. Even at this early stage, the emulator is running very well, though input controls need to be polished. The following demo video shows a collection of 10 classic Amiga games including Defender of the Crown, Battle Squadron, International Karate +, R-Type, R-Type II, Speedball, Stunt Car Racer, Shadow of the Beast, Virus, and Xenon 2: Megablast:

The shown games don't necessarily reflect the selection that will become available in the App Store, as that will depend on the ultimate licensing agreements. The emulator achieves its performance using tuned ARM assembly language and will only support iPhone 3GS / 3rd gen. iPod touch devices and up. No release date has been announced.

Apple has started rolling out 90 second song previews on iTunes tonight. The offering is presently sporadic with not every album, or even every eligible song on an album, offering a full 90 second preview.

According to a previous letter sent to music labels, Apple intends to offer 90 second previews on all songs longer than 2 minutes and 30 seconds. Songs shorter than this length will continue to offer only 30 second previews.

Apple's email also noted that by continuing to offer their music on the iTunes Store, labels are indicating their acceptance of the new terms. Consequently, any labels who do not wish to agree with the terms must withdraw their music from the iTunes Store.

Epic Games has released their first full iOS game tonight. Infinity Blade is a gesture-based fighting game that is based on the company's Unreal Engine 3. Epic showed and released a free technology demo of the engine at Apple's 2010 Fall Media event, and has since taken the time to flesh it out into a full game.

TouchArcade reviews the new release and describes it as a "must have" but warns not to expect an open world RPG:

If you were expecting Infinity Blade to be some massive open-world RPG and any number of other things I've seen people on our forums suggesting, you're going to be sorely disappointed. If all you were looking for is a fighting game with a really cool input method that fits perfectly with iOS devices, you're going to be in for a treat. The RPG elements are very light, but the fighting is solid, and the graphics are the best we've seen so far on the App Store.

Infinity Blade is a universal app optimized for both iPhone/iPod touch and iPad and is available for $5.99

Despite some recent predictions to the contrary, The Loop claims the Mac App Store won't be launching until January 2011.

Reports earlier this week claimed Apple would launch the Mac App Store on December 13, ahead of the holiday shopping season. However, according to my sources, Apple will launch the store in the new year.

The previous report pegged the launch as early as December 13th. The later January launch would make more sense as Apple still needs to ready the final version of Mac OS X 10.6.6 to coincide with the Mac App Store launch. A January launch would still coincide with Apple's original plans to launch within 90 days of their October announcement.

Apple today issued an EFI firmware update for the new 11-inch and 13-inch MacBook Air models, the latest in a series of software updates released since the line was revamped in late October as some users have complained of display problems, kernel panics, and other issues.

The new update, known as MacBook Air EFI Firmware Update 2.0, addresses a "rare" issue with the machine booting or waking from sleep to a black screen or becoming completely unresponsive.

This update resolves a rare issue where MacBook Air boots or wakes to a black screen or becomes unresponsive. This update is recommended for all 11-inch and 13-inch MacBook Air (late 2010) models.

The MacBook Air EFI Update will update the EFI firmware on your notebook computer. Your computer's power cord must be connected and plugged into a working power source. When your MacBook Air restarts, a gray screen will appear with a status bar to indicate the progress of the update. It will take several minutes for the update to complete. Do not disturb or shut off the power on your MacBook Air during this update.

Apple released a graphics-related update for the new MacBook Air just as it began shipping, but even so users reported a number of issues with the new machines. Apple's internal support teams acknowledged several of the graphics issues soon after, and fixes were included in Mac OS X 10.6.5 released in mid-November.

In addition to today's news that promo codes for applications in Apple's iOS App Store are now valid worldwide, several other items of interest related to the iOS and Mac App Stores have surfaced yesterday and today.

First, MacStories notes that the latest version of Apple's iTunes Connect Developer Guide makes clear that promo codes will not be available for Mac App Store applications. In conjunction with last week's tip that Apple will not permit "demos, trial versions, or betas" of applications in the Mac App Store, this latest bit of info suggest that Apple will be fairly restrictive in what can be offered through the Mac App Store, preferring that developers use their own sites for non-mainstream distribution for testing and review purposes.

Given that Mac OS X is much more open than iOS in terms of officially-supported application distribution mechanisms, it appears that Apple feels that limiting its role to mainstream distribution is a preferred strategy, at least for the time being.

Second, Apple yesterday announced on its developer news page that iOS developers can now submit Mac OS X versions of their applications to the Mac App Store with the same names as their corresponding iOS applications. Apple had previously required that applications in the two stores carry different names, but has apparently now opted to support the branding and consistency permitted by using the same name for a given application on each platform.

Finally, iClarified reports that Apple has informed iOS developers that it will be upgrading the security on its push notification service as of December 22nd, introducing 2048-bit certificates to ensure greater security for connections between applications' notification provider servers and Apple's servers. The change will not require modficiations to iOS applications, but will require developers to update their notification servers with the new certificate.

Industry Gamers reports on the results of a new survey from market research firm Interpret revealing that users of handheld games are increasingly moving away from dedicated devices such as the Nintendo DS and Sony PSP in favor of smartphones such as the iPhone.

The report, "The Phone Gaming Revolution: Do the DS and PSP Stand a Chance?," found that 43.8% of the phone/DS/PSP gaming market plays games on phones, which represents a significant 53.2% increase over the past year. At the same time, Interpret says that the proportion of those who play on the DS or PSP has fallen by 13%.

But while that data could indicate that the market for handheld gaming is simply expanding with the increasing capabilities of phones, other data shows that users of dedicated gaming devices are in fact abandoning those devices in favor of their phones.

The company notes, "Gamers appear to be defecting from their handheld gaming devices to phones to get their gaming kicks: a full 27.2% of consumers who indicate that they play games on their phones only (and not on the DS/PSP) actually own a DS or PSP, but do not actively use the device(s)."

With existing dedicated gaming devices being forsaken in favor of all-in-one smartphone devices, some analysts are questioning whether dedicated devices have a significant role in the future portable gaming market. Sony at least appears to be responding to the threat with a "PlayStation Phone" of its own that appears to be an Android-based device offering many of the features of a smartphone while also including hardware buttons akin to those found on traditional handheld gaming devices.

Apple today announced a "special limited time" offer of reduced pricing on all three refurbished Wi-Fi iPad models in its U.S. online store, dropping the price of the 16 GB model by additional $20 and the 32 GB and 64 GB models by an additional $50 over the standard refurbished prices.

All refurbished iPads come with brand-new batteries and external shells and include one-year warranties. Refurbished iPad Wi-Fi + 3G models are not included in the special pricing and continue to be offered at $50 off relative to brand-new units.