MacRumors

With the announcement of the iPad 2 at a media event today, Apple has reduced prices on first-generation iPad models in its online store. The new prices are available through a special clearance page. Each model has been reduced by $100, bringing the price for the entry level 16 GB Wi-Fi-only iPad to $399 and the most expensive 64 GB Wi-Fi + 3G model down to $729 from its original price of $829.

Refurbished first-generation iPads are also currently available at the time of this post, offering prices even lower than the clearance levels. A refurbished 16 GB Wi-Fi iPad 1 is priced at $349, while a refurbished 64 GB Wi-Fi + 3G iPad 1 is $659. Refurbished iPads are available in Apple's U.S. online store here.

Apple announced today during their iPad 2 keynote, that iOS 4.3 will be arriving on March 11th with a number of new features. iOS 4.3 includes a faster Safari browser, iTunes Home Sharing, AirPLay enhancements, iPad side switch preference (rotate or mute), and the Personal Hotspot feature for iPhone 4.

"With more than 160 million iOS devices worldwide, including over 100 million iPhones, the growth of the iOS platform has been unprecedented," said Steve Jobs, Apple's CEO. "iOS 4.3 adds even more features to the world's most advanced mobile operating system, across three blockbuster devices--iPad, iPhone and iPod touch--providing an ecosystem that offers customers an incredibly rich experience and developers unlimited opportunities."

The new features are detailed here:

- Faster Safari - The Nitro JavaScript engine that Apple pioneered on the desktop is now built into WebKit, the technology at the heart of Safari, and more than doubles the performance of JavaScript execution using just-in-time compilation.
- iTunes Home Sharing - allows iOS 4.3 users to play music, movies and TV shows on an iPad, iPhone or iPod touch from their iTunes library on a Mac or PC over a local Wi-Fi network.
- Enhancements to AirPlay - With iOS 4.3 you can stream additional content including video from third party apps and web sites, videos from the Photos app and previews from the iTunes app to your TV
- Personal Hotspot - This feature in iOS 4.3 lets you bring Wi-Fi with you anywhere you go, by allowing you to share an iPhone 4 cellular data connection with up to five devices in a combination of up to three Wi-Fi, three Bluetooth and one USB device.

iOS 4.3 is compatible with iPhone 3GS, iPhone 4 GSM, 3rd Gen iPod Touch, 4th Gen iPod Touch, iPad, and iPad 2. It will be available for download starting on March 11th. The iPhone 4 CDMA (Verizon) seems to be excluded from the compatibility list.

As expected, Apple announced the next generation of its popular tablet device at a media event today. The iPad 2 will have the same 9.7-inch display but will be 33% thinner than the previous model. It will have front-facing and rear-facing cameras and Apple's new 1GHz dual-core A5 processor.

With more than 15 million iPads sold, iPad has defined an entirely new category of mobile devices, said Steve Jobs, Apples CEO. While others have been scrambling to copy the first generation iPad, were launching iPad 2, which moves the bar far ahead of the competition and will likely cause them to go back to the drawing boards yet again.

With the addition of cameras, the next-generation iPad will be capable of making FaceTime calls with other FaceTime-capable devices. The rear-facing camera can capture 720p HD video. Despite its thinner casing, the iPad 2 will have the same battery life as the first generation of 10 hours and 30 days of stand-by time.

The 3G models of the iPad 2 will be compatible with the GSM networks of AT&T and other carriers as well as Verizon's CDMA network. The versions compatible with Verizon's network will be sold in the U.S. only.

Apple has designed new accessories for the next-generation iPad, including cases called Smart Covers and an HDMI adapter. The Smart Covers will attach magnetically to the iPad 2 and will automatically wake the device when opened and put it to sleep when closed.

The iPad 2 will run iOS 4.3 which will be released for other iOS devices on March 11.

The iPad 2 will be available starting March 11 in the U.S. and will come in two colors: white and black. Pricing and capacities have not changed from the first generation of the iPad with the Wi-Fi models coming in at $499 for 16GB, $599 for 32GB, and $699 for 64GB. The Wi-Fi + 3G models will cost $629 for 16GB, $729 for 32GB, and $829 for 64GB.

Apple today is holding a media event at the Yerba Buena Center for the Arts in San Francisco, where it is widely expected to introduce the next-generation iPad. The event is scheduled to kick off at 10:00 AM Pacific Time / 1:00 PM Eastern Time, or just about an hour from now.

There is still no word on whether Apple will be providing live video as it has for the last several media events, so users should check Apple's site in the lead-up to the event to watch for coverage possibilities. Regardless of Apple's own live coverage plans, a number of news sites will be on hand to provide text and photo updates, and we're including links to several of them here. We will also be updating this article with coverage as the media event unfolds and issuing Twitter updates through our @MacRumorsLive account. Separate news stories regarding the event announcements will go out through our @MacRumors account.

- Engadget
- Ars Technica
- Macworld
- CNET
- The Wall Street Journal
- The Loop

Apple's online stores around the world are currently down in advance of the event.

Recent News and Rumors

- 'The Da Vinci Code' and Other Random House Titles Appearing in iBookstore
- Apple to Launch New 'Social' iOS App Tomorrow?
- Apple's Media Event to See Introduction of iPad 2, Cloud-Based MobileMe?
- Steve Jobs to Appear at Tomorrow's Media Event?
- iPad Showing Up as 'Deleted' in Best Buy Inventories

Event Updates

- Attendees are in the theater and seated. Apple has requested that all electronic devices be silenced.
- Event beginning.

- Steve Jobs on stage to standing ovation. "We have something great to announce today, and I didn't want to miss it."
- First, a few updates.
- iBooks: Over 100 million books downloaded, and today we're adding Random House with 17,000 books. Now over 2,500 publishers in the iBookstore.
- Just crossed 200 million iTunes Store accounts...can be used in three stores: iTunes, App Store, iBookstore.
- Over $2 billion paid out to App Store developers.
- Recently shipped 100 millionth iPhone.
- We're here to talk about our third post-PC blockbuster product. First there was the iPod, then the iPhone, then the iPad. Most of our revenue comes from these products. Recapping iPad launch..."magical" product, unbelieveable price.
- 2010 was the year of the iPad. Sold almost 15 million of them in just nine months. $9.5 billion in revenue...we've never had a product get off to that fast of a start. Over 90% market share, and competitors flummoxed.
- Over 65,000 iPad apps available. Our competitors have at most 100. Our retail stores have been key to the iPad rollout.
- Showing a video talking about the success of the iPad...Phil Schiller, Ron Johnson on-screen talking about the phenomenon. Highlighting iPad use in Chicago schools, hospitals, etc.
- Jobs back on stage. We'd like to build on the success of 2010. What about 2011...year of the copycats?
- Today we're introducing iPad 2. All-new design...not tweaked, not marginal improvements.

- New chip: The Apple A5. Dual-core, up to 2x faster. Graphics up to 9x faster. Same low power as A4. First dual-core tablet to ship in volume.

- Front- and rear-facing cameras, built-in gyroscope, 33% thinner than iPad 1. 8.8 mm vs. 13.4 mm. Also lighter...moves from 1.5 lbs to 1.3 lbs.

- Two colors: black and white. White is shipping from day one. Models for AT&T and Verizon, available from day one. Same 10-hour battery life.
- Same price points, same capacities. Starts at $499, and five of the six models are below competitors' entry-level pricing (Motorola Xoom) of $799.
- Ships March 11th in the U.S., 26 more countries on March 25th.
- HDMI mirrored video out from dock connector...$39 adapter provides up to 1080p for all apps while allowing charging.

- Smart Covers. We did a case for the original iPad, but thought we could do better...it's not a case, but a cover. Bends around and acts as a typing stand. Automatically wakes iPad when opened, sleeps iPad when closed. Magnetic. Polyurethane ($39) or leather ($69) in assorted colors (five of each), easy removal.

- Now on to software: iOS 4.3. Scott Forstall on stage to talk about new features and enhancements.
- iPad 2 comes with iOS 4.3. Significantly faster Safari. JavaScript 2x faster.
- iTunes home sharing...access all music, movies, and TV shows on your home computer from your iOS device, wirelessly over Wi-Fi.
- AirPlay improvements: Built-in slideshow options for photos, Third-party apps and websites can now do video and audio.
- iPad switch now can be used for mute or rotation.
- Personal hotspot: iPhone 4 only...share 3G connection via Wi-Fi to other devices.
- Showing video of smart cover.

- New software. Since the iPad now has cameras, we've added Photo Booth. iPad 2 can serve up nine live video streams to preview effects.
- FaceTime. Works between two iPads, between iPad and iPhone/iPod touch, and between iPad and Mac.
- Demoing iPad FaceTime call.
- iOS 4.3 free download on March 11th.
- Jobs back on stage with two more apps to show off. We like doing apps because it gives us perspective and can set the bar for other developers.

- iMovie for iPad. Precision editor, multitrack audio recording, AirPlay, universal app.
- Randy Ubillos on stage to give demo. Much more useful on iPad with larger screen size. Can record directly into timeline from the camera. Full multitouch control. Major audio improvements: Sound effects, three audio tracks plus background, etc. New themes. Sharing to YouTube, Facebook, Vimeo, CNN iReport, iTunes.
- $4.99, available in App Store March 11th.

- GarageBand for iPad. Touch instruments, or plug in real instruments, etc. Compatible with Mac version. Xander Soren on stage for demo. Showing off piano...sustain button, dynamic volume response: volume based on how hard you tap, uses accelerometer.
- Showing off synth keyboards, drums, guitars.
- Jobs back on stage. GarageBand launches March 11th, $4.99

- Recapping iPad 2. We think this is going to be the year of iPad 2.
- Now a video.
- Jobs back on stage and wrapping up. Once again talking about marrying technology with the humanities. Looking forward to the post-PC era where hardware and software need to intertwine even more. We think we're on the right path and will be competitive.
- Thanking the teams that have worked on the projects.
- End of presentation...media headed to the hands-on display area.

With Apple's media event scheduled to kick off in under three hours, Apple has taken its online stores around the world offline. The change is standard operating procedure for Apple ahead of major events and new product releases.

The primary focus of today's media event is expected to be the second-generation iPad, a new set of photos of a mockup have been spotted by M.I.C gadget and getting some attention today.

While the device is a physical mockup, it is said to have been based on the actual design of the second-generation iPad, which has been floating around amongst case manufacturers for some time and yielding increasingly-detailed mockups such as this one.

In addition, Your Daily Apple claims that a listing for the second-generation iPad briefly appeared on Amazon's German site, listing a 1.2 GHz processor, camera, Thunderbolt connectivity, and an on-sale date of March 17th. We do not, however, necessarily believe this to be accurate inside information.

Beyond the new iPad, Apple has been rumored to be previewing iOS 5 and revamping MobileMe. Last minute hints of a social-focused MobileMe revamp include claims of some sort of 'social' app for iOS devices, and a trademark filing for "Places" in the area of social networking.

Books from publisher Random House also began appearing in the iBookstore for the first time earlier today, and Apple may offer some discussion of the addition.

Update: iLounge reports that a case cover proximity sensor hinted at in iOS 4.3 may in fact make an appearance in the new iPad in the form of a magnet that could grip the front of folio-style cases and automatically lock and unlock the device. We had previously heard that the rumored proximity sensor might in fact be a magnetic Hall effect sensor.

iLounge also claims that we may not see immediate availability of the new iPad, at least in significant quantities, with volume shipments not expected for 2-4 weeks.

As noted by 9 to 5 Mac, titles from publisher Random House have already started populating Apple's iBookstore, at least in the United States. Popular titles such as Dan Brown's The Da Vinci Code that have been absent from the iBookstore since its launch nearly a year ago are now available.

Random House yesterday announced that it has adopted the agency model favored by Apple for e-Book pricing, of course leading many to assume that the publishers content would be making its way to the iBookstore.

Random House is the last of the six largest book publishers to come to the iBookstore, and it seems likely that Apple will make mention of the addition at today's media event.

Back in January, Microsoft filed an objection to Apple's trademark application for the term "App Store", arguing that Apple had usurped a generic term for its trademark, causing confusion and difficulties for other companies seeking to promote their own application marketplaces.

TechFlash now reports that Apple has hit back at Microsoft in the dispute, arguing that Microsoft has failed to prove the generic nature of the term and takes a dig at Microsoft and its own work to secure "Windows" as a non-generic trademark.

In a none-too-subtle dig at its longtime rival, Apple points in part to Microsoft's own defense of one of its most valuable trademarks.

"Having itself faced a decades-long genericness challenge to its claimed WINDOWS mark, Microsoft should be well aware that the focus in evaluating genericness is on the mark as a whole and requires a fact-intensive assessment of the primary significance of the term to a substantial majority of the relevant public," says Apple in the filing. "Yet, Microsoft, missing the forest for the trees, does not base its motion on a comprehensive evaluation of how the relevant public understands the term APP STORE as a whole."

Apple response points directly to the alternative names used by other companies for their own application marketplaces as evidence of the non-generic nature of the "App Store" term, and notes that the company has taken steps to protect the trademark from becoming a generic term by reaching out to entities that have used it improperly.

The U.S. Patent and Trademark Office will now consider the case and determine to grant Microsoft's motion or allow the trademark case to go to trial for a final resolution.

Bloomberg briefly reports on comments from Verizon Chief Financial Officer Fran Shammo revealing that the carrier is planning to discontinue its unlimited data plan for the iPhone as soon as this summer.

The carrier, which began selling the iPhone last month, now offers a $30 unlimited data plan on the device. Such plans on the handset are "not a long-term solution," Shammo said on a conference call at the Morgan Stanley Technology, Media and Telecom Conference today.

The unlimited data plan had been positioned as a temporary offering as long ago as late January, before the device's launch, with Verizon Chief Operating Officer Lowell McAdam noting that it would disappear "in the not too distant future".

Existing Verizon customers are of course expected to be able to maintain their unlimited data plans at least through the end of their current contracts, although they may be able to switch to limited data plans at different price points if they so desire.

AT&T, which long offered unlimited data, made a similar shift to tiered data plans last June with the launch of the iPhone 4, although customers with unlimited data plans at the time of the transition have been able to keep their plans. The company has reportedly been offering some customers who had switched away from unlimited plans the option to switch back to unlimited in order to keep them from defecting to Verizon.

Update: Reuters has also filed a report on Shammo's comments, quoting him as saying the shift away from unlimited data plans would probably take place in "mid-summer".

"We will probably do that in the mid-summer time frame," Verizon Chief Financial Officer Fran Shammo said during a webcast of an investor conference.

Verizon Wireless kept its unlimited plan for its first iPhone customers as it "didn't want to put up a barrier" to consumers who wanted to try out the device on its network, the executive said.

An unveiling of the second-generation iPad at Apple's media event tomorrow has been considered nearly a sure thing ever since the invitation making obvious reference to the device appeared, but what has remained unknown is what other related announcements Apple might make at the event.

Cult of Mac reports that in addition to the second-generation iPad, Apple will also debut its cloud-based MobileMe service tomorrow, allowing users to upload media to Apple's servers and access them from a variety of devices.

The Apple staffer, who asked to remain anonymous for obvious reasons, said the new MobileMe service will store music, TV shows, and films that were purchased from the iTunes store. The staffer also said that there was talk inside Apple of being able to upload all your music and videos to the cloud whether it was purchased from iTunes or not. However, they couldnt confirm whether this will be rolled out or not.

Apple has reportedly been working on a revamp of MobileMe said to involve some cloud-based services, with rumors indicating that at least some portions of the service may become free. Apple also recently discontinued its MobileMe retail boxes, although reports have differed as to whether the change is suggestive of an imminent transition for the service itself or simply an adjustment in the way the service is sold to consumers.

The source of today's report also indicates that the iPad being introduced tomorrow should be considered more of a spec bump of the existing model than a true revamp. A more ambitious revamp is reportedly scheduled for later this year.

The Apple staffer declined to give details about the iPad 2 or 3, but said:

"For the iPad 2 don't get your hopes up too high. That's all I'm going to say. They've had a number of problems along the way, and the third-generation iPad is the one to make a song and a dance about."

A pair of reports from early February suggested that Apple may indeed be planning to launch yet another new iPad later this year, potentially in the September timeframe typically associated with iPod refresh cycles. Additional claims of a more substantial iPad update later this year also surfaced last week.

Italian site setteB.IT reports [Google translation] that Apple CEO Steve Jobs is expected to appear at tomorrow's media event widely expected to see the introduction of the next-generation iPad.

Yes, all odds are against us, yet we have reassuring information.

We want to tip the balance and we believe that the new iPad will debut in the hands of Steve Jobs.

The source and its legitimacy are unknown, and we have a hard time believing that Jobs will distract from the focus on the iPad and other potential announcements by stepping out of his indefinite medical leave of absence to be on hand.

Update: All Things Digital reports that Jobs is "definitely considering" making an appearance at the event tomorrow, most likely in a brief appearance on stage with other executives to show off the new iPad. His appearance has not, however, been confirmed.

According to several sources close to the situation, Apple CEO Steve Jobs - who is on a health-related leave from the company - is definitely considering an appearance at its big iPad 2 event tomorrow.

But the possibility - which would be a big sensation at the San Francisco gathering - is also just as definitely not confirmed as yet, stressed sources.

If he did appear, sources said Jobs would at least make a brief appearance onstage, along with other top company execs in showing off Apple's latest version of it hugely popular tablet.

Following up on yesterday's report that Apple is cutting off supplies of all iPad models to resellers ahead of tomorrow's media event, we've just heard from a Best Buy source that all iPad models have been transitioned to a "deleted" status at the source's store.

There is no word yet on any incoming shipments or placeholders in Best Buy's systems, but Apple is widely expected to introduce updated iPads at tomorrow's event, with availability rumored to come very soon after.

Best Buy inventory screens can be unreliable sources of information given the company's tendency to use placeholders based on rumors and guesses rather than concrete information, but they occasionally do offer accurate information and can be a good source of insight into supply constraints due to the company's role as a major Apple retail partner.

The Telegraph reports that Apple CEO Steve Jobs had been set to be awarded honorary knighthood by the British government and Queen Elizabeth II in 2009, but his nomination was blocked by Gordon Brown, who served as Prime Minister at the time. Brown's block is said to have been related to a failed bid to attract Jobs to speak at a Labour Party event.

The then-Prime Minister refused to knight Mr Jobs in 2009 because he turned down an invitation to speak at the Labour Party conference, a former senior Labour MP said.

Mr Jobs was put forward for the honour by the MP for services to technology. Apple is credited with revolutionising the industry in recent years with its iPhone and iPad devices, which have unleashed a boom in mobile internet usage.

Honorary knighthood can be bestowed on citizens of countries outside the British Commonwealth of Nations and has been used to honor the achievements of a number of prominent individuals. Notably, Microsoft co-founder Bill Gates was named an honorary Knight Commander of the Order of the British Empire in 2005.

Reuters reports that former Apple supply manager Paul Devine, who was arrested last August over a kickback scheme in which he provided confidential company information to accessories manufacturers, has pleaded guilty in the case.

Apple launched an internal investigation last year and found a cache of emails between Devine and the suppliers, according to a civil lawsuit the company filed against Devine. U.S. prosecutors then obtained an indictment on 23 counts in August.

Devine pleaded guilty on Monday to wire fraud, conspiracy and money laundering in a San Jose federal court, the U.S. Attorney's office announced. He also agreed to forfeit about $2.28 million in money and property.

Devine, who worked at Apple from 2005 until 2010, faces a maximum of 20 years in prison on the wire fraud and money laundering counts. Among the companies that paid kickbacks to Devine was Kaedar Electronics, a subsidiary of Apple manufacturing partner Pegatron that has provided packaging for Apple's iPod products for a number of years.

In a brief press release (PDF), publisher Random House yesterday announced that it will immediately adopt the agency model for e-Book pricing in the United States, paving the way for its content to be included in Apple's iBookstore should the companies come to a final agreement.

Random House, Inc. is adopting the agency model for e‐book sales in the United States effective March 1, 2011. Going forward, Random House will set consumer prices for the e‐ books we publish, and we will provide retailers with a commission for each sale. There are no changes to our terms of sale for physical books.

Random House, the world's largest publisher, as been the highest-profile holdout from the agency model, with most major publishers having reached agreements with Apple, Amazon, and others nearly a year ago as the iBookstore launched in the United States.

The agency model allows publishers to set retail prices, with retailers earning commissions for each sale. The traditional system had allowed retailers to set their own prices, with some such as Amazon even selling select content at a loss in order to draw in customers. Many publishers viewed the practice as devaluing their content and threatening the long-term viability of the industry, but Random House has been reluctant to shift away from it. Even with today's announcement, Random House will continue to use the traditional model for its physical books.

Random House's announcement does not include specific mention of the iBookstore, but given that its refusal to move to an agency model appeared to be by the most significant stumbling block to the two companies reaching an agreement, it seems likely that Random House's books will make their way to the iBookstore in the relatively near future.

As expected, Apple's "secret" meeting for retail store employees last night was in fact targeted at sharing information on the company's forthcoming "Joint Venture" service that will roll out over the next few days, primarily focusing on providing advanced and priority technical support to small businesses.

9 to 5 Mac and our own sources have provided a few details on the program, which will cost $499 per year for up to five machines and $99 per year for each additional machine. The program offers a number of benefits, including:

- Genius Bar telephone support and priority access: Users will be able to receive call-in technical support from Apple Geniuses rather than having to visit an Apple Store. Those that do elect to stop by an Apple Store for in-person consultations will receive priority access.

- Loaner computers: For repairs scheduled to take more than 24 hours, Apple will provide loaner 15-inch MacBook Pros to carry users through while their own machines are out of commission.

- Workshops and setup: Specialized workshops will be held to assist small businesses with increasing the effectiveness of their Macs and other devices. Apple Geniuses will also provide setup for new machines, including data transfers and configuration of Microsoft Exchange and other services to work with companies' existing systems.

9 to 5 Mac reports that a number of Apple resellers have been notified that iPad supplies are currently "constrained" and that there is no estimate on when they may become available. The development is not much of a surprise, considering that Apple has been widely rumored to be introducing the next-generation iPad at a media event on Wednesday, just two days from now.

MB292LL/A iPad 16GB WiFi Constrained No ETA

MB293LL/A iPad 32GB WiFi Constrained No ETA

MB294LL/A iPad 64GB WiFi Constrained No ETA

MC349LL/A iPad 16GB 3G Constrained No ETA

MC496LL/A iPad 32GB 3G Constrained No ETA

MC497LL/A iPad 64GB 3G Constrained No ETA

The fact that supplies are already drying up does hint, however, that we may see the new iPad go on sale sooner rather than later. That would match up with a report from AppleInsider late last week claiming that customers should be able to expect "near immediate availability" of the new iPad.