MacRumors

Apple is keeping its developers busy today: Alongside a new build of Mac OS X 10.6.4, Apple has also released the fourth beta version of iPhone OS 4 and the associated software development kit (SDK). The release is not much of a surprise given that Apple has taken to biweekly releases of its iPhone development tools and today marks two weeks since the release of the third beta version.

Available to registered developers via the iPhone Dev Center, the fourth beta is a refinement of the operating system and developer tools initially released in early April alongside a media event to introduce the next-generation software for Apple's iPhone OS devices. No details on changes in the new version have yet been documented beyond new wallpaper options, but those with access to the beta are undoubtedly already digging for information.

Apple is expected to publicly release iPhone OS 4 to iPhone and iPod touch users "this summer", although early models of those devices will not be compatible with the new OS and even some newer models will not be able to take advantage of all of the features. iPhone OS 4 will come to the iPad "in the fall".

World of Apple reports that Apple has seeded yet another new version of Mac OS X 10.6.4, termed Build 10F54, to select developers. The release comes just days after the release of Build 10F50.

Little seems to have changed since the previous release according to the documentation, although the new build now carries no known issues. Developers are reportedly once again asked to focus their attention on GraphicsDrivers, SMB, USB, VoiceOver, and VPN.

The shortening interval between developer seeds could indicate that Apple is wrapping up development on the update, although Apple's development cycles are unpredictable and the company could continue minor refinements for some time as was seen with Mac OS X 10.6.3. That release was first seeded to developers in early January and did not make its public debut until late March.

MarketWatch takes a look at "what might have been", examining Apple CEO Steve Jobs' decision to accept a March 2003 offer from the company to exchange his existing stock options for new ones at a more attractive price in comparison to the company's languishing stock price at that time, a move that would appear to have cost Jobs $10 billion in net worth at today's prices.

After the bursting of the tech bubble in early 2000, the Nasdaq Composite had plunged nearly 80% from its peak. Companies had folded left and right. Those left were staggering. Apple had fared as badly as any. Its stock had plummeted from a peak of $36 all the way down to about $7. (All prices have been adjusted for a subsequent stock split.)

With Jobs holding multiple lots of stock options with exercise prices of $9.15 (15 million shares) and $21.80 (40 million shares), his stake in those options was worthless at that time beyond the potential for share price increases to push the options into positive territory in the future.

Jobs was not the only Apple employee in that position, however, and when the company offered employees the opportunity to cancel their existing options in exchange for a significantly smaller number of options at a lower price, Jobs and others took the offer.

He volunteered to cancel all his options in return for a far smaller number of shares, worth about $75 million at the time. The trade made sense -- unless Apple boomed again.

Ahem.

The shares Jobs received are worth $2.5 billion at today's stratospheric prices.

Had Jobs held onto his original options, he would have seen them become profitable approximately a year and a half later and be worth $12.8 billion today. The difference means a missed opportunity of $10.3 billion for Jobs.

As the report notes, however, Jobs is of course not hurting for wealth, having been ranked the world's 136th richest person in Forbes' recent rankings. But the majority of Jobs' wealth comes from his holdings of Disney, where he became the company's largest individual shareholder after it purchased Pixar in 2006.

And there may have been another upside to Jobs' cancellation of his original stock options. A portion of those options, along with additional grants made to other Apple executives, was the focus of a backdating scandal, which resulted in an investigation by the U.S. Securities and Exchange Commission and the departure of former Chief Financial Officer Fred Anderson from Apple's Board of Directors and General Counsel Nancy Heinen from the company.

AppleInsider points to a thread in the official Nike+ forums announcing that a Nike + iPod heart rate monitor is due for launch on June 1st.

Great news! I have a U.S. launch date for the Nike+ compatible heart rate monitor. It will officially launch on June 1, 2010, although it may reach some retail outlets slightly sooner. It will reach Canadian markets in June and will launch internationally in summer 2010, exact date to be determined.

I know you're going to ask, so I'll answer pre-emptively: no, I am not able to discuss price, color, device compatibility, and other details at this point. Stay tuned.

Plans for the heart rate monitor were revealed last September in a revision to Apple's Nike + iPod User Guide, which claimed that the device will only be compatible with the fifth-generation iPod nano.

At the time, reports indicated that Nike had been planning to launch the heart rate monitor alongside the new iPod nano, but it is unclear at this time why the monitor experienced an approximately nine-month delay.

A premature press release posting earlier this month has now been made official, with Visa announcing that its partnership with DeviceFidelity will see the launch of a specially-designed iPhone case that will integrate a microSD slot to facilitate contactless payment transactions.

DeviceFidelity, Inc. today announced the availability of its In2Pay solution for iPhone, designed to enable iPhone users to make contactless transactions, such as Visa mobile payments, by simply waving the iPhone in front of a contactless payment terminal. The solution combines DeviceFidelity's In2Pay microSD technology with a specially designed, patent-pending protective case that adds mobile contactless capability and works with iPhone 3GS and iPhone 3G.

Building on Visa's payWave system that currently allows credit and debit users to simply wave their cards in front of compatible terminals to pay for purchases, the In2Pay system aims to allow users to reduce the need to carry credit cards or other payments forms in addition to their phones.

The system also offers the potential for expansion beyond payments to other proximity-based services, including building and computer network security access.

By placing a removable In2Pay microSD into the protective case, iPhone users can take advantage of In2Pay's secure contactless capabilities where contactless transactions are offered. They range from buying goods in retail stores and at unattended kiosks, to transit ticketing, and even securely accessing buildings and computers networks. Trials are scheduled to start during the second quarter of 2010.

DeviceFidelity's In2Pay system has been targeting the growing number of cellphones offering built-in microSD slots, but the iPhone's lack of such a slot required the company to develop an add-on to house the card and allowed to integrate it within a protective case.

Apple has been researching methods of providing such functionality directly within the iPhone, but in the meantime, companies are filling the void with their own proximty-based solutions.

As predicted, Apple has quietly upgraded their low-end MacBook with a faster processor and much improved video card. The full specs include:

2.4GHz Intel Core 2 Duo
2GB DDR3 memory
250GB hard drive
8x double-layer SuperDrive
NVIDIA GeForce 320M graphics
Built-in 10-hour battery
Polycarbonate unibody enclosure

The MacBook is priced at $999 and is available immediately. The specs and even a hands-on video were leaked of the new MacBook over the weekend.

Fortune reports on a new research note from analyst Gene Munster at Piper Jaffray, who examined new April U.S. retail sales data for Apple from NPD and found very strong year-over-year Mac growth and a somewhat larger than predicted drop in iPod sales. The combination suggests that the iPad may be having more of a cannibalization effect on the iPod than on Macs, suggesting possible upside to Apple's financial performance as consumers are "upsold" to the iPad rather than holding back from Mac purchases.

"April NPD data gives us the first sign of the degree to which the iPad cannibalizes iPod or Mac sales," he writes. "From the early NPD data, it appears that the iPad has a minimal cannibalization impact on Mac sales, and could be slightly cannibalizing iPod sales. Given the ASP (4x) and margin profile of the iPad, we see this as a net positive for Apple's business."

As noted by All Things Digital, Munster's report suggests that the cannibalization of iPods rather than Macs is a direct result of Apple's positioning of the iPad and the capabilities offered by it. Munster says:

We believe in the long run Mac cannibalization will exist, but will be minimal. Apple has successfully limited the iPad functionality to primarily content consumption, vs. content creation on a Mac. And relative to the iPod, the physical size of an iPad provides a meaningfully different value proposition (portability vs. screen size).

NPD's data shows U.S. Mac sales up 39% year-over-year for the month of April, well ahead of the 19% consensus increase predicted by Wall Street analysts. According to Munster, that projects out to total sales of a strong 3.1-3.2 million Macs for the current quarter based on Apple's sales patterns.

The iPod, on the other hand, saw a 17% decline in unit sales year-over-year, significantly larger than the 9% decline predicted by the Street. Still, Apple may be on track to sell 9-10 million iPods this quarter, a healthy number given the impact of the iPad.

iPad cannibalization of other Apple product lines has been a focus for research analysts looking to understand the effect of the company's new device on its bottom line. Research from Morgan Stanley published earlier this month similarly showed a significant potential hit to the iPod, with 41% of surveyed customers planning to purchase an iPad saying they were doing so instead of purchasing an iPod touch. The same survey showed 24% and 14% of planned iPad customers holding off from buying Mac notebooks and desktops respectively, with another 20% (notebook) and 13% (desktop) forgoing non-Apple computers.

It's the rumor that undoubtedly won't die until it comes true, but the BBC takes another look at the prospect of The Beatles coming to Apple's iTunes Store, a topic that has been raised on a regular basis going back to the launch of the iTunes Music Store. According to Paul McCartney, the continued holdup is due to record label EMI.

"To tell you the truth I don't actually understand how it's got so crazy," Sir Paul told Newsbeat. "I know iTunes would like to do it, so one day it's going to happen."

Sir Paul has claimed the delay is down to record company EMI.

"It's been business hassles", he said. "Not with us, or iTunes. It's the people in the middle, the record label. There have been all sorts of reasons why they don't want to do it."

For its part, EMI has continued to remain essentially quiet on the subject, again sharing its oft-repeated claim that "discussions are ongoing" and noting that it would "love to see The Beatles' music available for sale digitally.

Considering their status as one of the biggest selling, if not the biggest selling, music acts in history, The Beatles have been one of the highest-profile omissions from the iTunes Store since its inception.

In a report today, DigiTimes claims that the next-generation iPhone's display will see a number of improvements that will push it to the front of the pack among smartphones. The upgrades come as manufacturer Foxconn appears to be planning to ship 24 million of the next-generation iPhones during 2010.

The next-generation iPhone's display has been the topic of significant discussion since Daring Fireball's John Gruber reported that it would carry a resolution of 960 x 640 pixels, up from 480 x 320 in the current iPhone. Despite the appearance of several prototype iPhones in recent weeks, the only confirmation of the higher resolution display has been a qualitative comparison with the current iPhone suggesting that it is the case. DigiTimes' report today again suggests that the new iPhone will in fact carry a 960 x 640 screen.

The next-generation iPhone's display will also reportedly adopt fringe-field switching (FFS), a technology that should improve viewing angles and performance in bright sunlight.

By incorporating FFS technology, which enables a wider viewing angle and clearer visual quality under in sunlight, Apple is aiming to improve the handset's e-book reader features and promote its iBooks Store. HTC's Hero smartphone has already adopted this technology.

The report also notes that the panel on the new iPhone is 33% thinner than in current models, allowing for increased battery size.

In addressing the brains behind the forthcoming iPhone, the report claims that users can expect an ARM Cortex A8 processor, of which the Apple A4 processor used in the iPad and observed in one of the prototypes is an implementation. The report claims, however, that it will also offer 512 MB of RAM.

The iPhone 4G will run on the Arm Cortex A8 processor and a 512MB memory module from Samsung Electronics, doubling the memory capacity seen in the iPhone 3GS to take advantage of the multi-tasking capability of the iPhone 4.0 platform, Kuo revealed.

This information conflicts with evidence from the prototype that recently surfaced in Vietnam, which carries only 256 MB of RAM, the same as in both the iPad and the iPhone 3GS.

Apple is widely expected to introduce the new iPhone on June 7th at its annual Worldwide Developers Conference.

Steve Jobs and Gawker writer Ryan Tate ended up in a heated email exchange Friday night. Tate published the email thread in which he attacks the Apple CEO over various topics including the iPad, Flash, App Approvals, and the lost iPhone. Tate opens the exchange with:

If Dylan was 20 today, how would he feel about your company? Would he think the iPad had the faintest thing to do with "revolution?" Revolutions are about freedom.

Jobs seems to keep his cool during much of the debate and defends the closed App ecosystem as well as Apple's decisions to restrict certain developers such as Adobe:

Gosh, why are you so bitter over a technical issue such as this? Its not about freedom, its about Apple trying to do the right thing for its users. Users, developers and publishers can do whatever they like - they don't have to buy or develop or publish on iPads if they don't want to. This seems like its your issue, not theirs.

Jobs ends with:

By the way, what have you done that's so great? Do you create anything, or just criticize others work and belittle their motivations?

Vietnamese site Tinhte has managed to get their hands on an unreleased MacBook. This is the same site that published a video of the unreleased 4th generation iPhone.

The upcoming MacBook carries a 2.4GHz processor, NVIDIA 320M graphics card and an LED backlit display. They even have hands on video of the new machine:

Based on reseller reports, we expect the new MacBook could ship as early as next week.

Following on earlier news that a California court would be releasing documents related to a search warrant for the lost next-generation iPhone that ended up in the hands of Gizmodo, CNET has now posted the full documents released by the court. The documents indicate that Gizmodo's Jason Chen was considered in the requests to be a suspect in three felonies, including purchase or receipt of stolen property, theft of trade secrets, and malicious damage to another person's property (the prototype iPhone) valued at over $400.

The documents also include testimony that Brian Hogan, the finder of the iPhone, had received $8,500 from Gizmodo for the device, with an additional bonus payment to be made if Apple releases the expected device this summer.

The affidavit from Detective Matthew Broad outlines a series of events, including a discussion with Apple executives which revealed that Hogan's roommate had contacted Apple after Hogan connected the iPhone to her computer, fearing that the lost or stolen device would be traced back to her. Hogan's roommate cooperated fully with authorities and assisted them when Hogan and an acquaintance removed several pieces of evidence from his apartment. The evidence, which included a desktop computer, USB flash drive and memory card, and stickers from the iPhone prototype, were found in a church, under a bush, and in a gas station parking lot.

Hogan's roommate relates a story very similar to that previously related by Hogan to Gizmodo, suggesting that another bar patron had picked up the iPhone and given it to him thinking it was his. It is unclear exactly how Apple engineer Gray Powell lost the iPhone, although he noted that the last thing he remembered was placing it in a bag he had brought with him to the bar. The bag was later knocked over, and it is possible that the phone fell out at that time.

Hogan's roommate also noted that she and other attempted to talk him out of selling the prototype iPhone by pointing to the effect it could have on Powell's career, but he was unswayed. Hogan reportedly said, "Sucks for him. He lost his phone. Shouldn't have lost his phone."

The documents also include an email from Gizmodo editor Brian Lam to Apple CEO Steve Jobs in which he offered an explanation for his publication's actions and expressed disappointment that Gizmodo had been receiving less attention from Apple than other media outlets recently.

The thing is, Apple PR has been cold to us lately. It affected my ability to do my job right at iPad launch. So we had to go outside and find our stories like this one, very aggressively.

Apple also documented damage to the prototype iPhone upon its return, noting that a ribbon cable had been broken, a screw had been inserted incorrectly causing an electrical short, snaps for the back plate had been broken, and several screws had been stripped.

Overall, the investigation remains ongoing and neither Chen nor Hogan has been charged in relation to the case. The entire affidavit is fascinating to read and is available in its entirety (PDF), via Wired.

Bloomberg reports that the search warrant authorized by a judge in San Mateo County that allowed police to seize evidence related to the lost next-generation iPhone that appeared in the hands of Gizmodo has been ordered unsealed. The warrant is expected to confirm that Apple itself reported the iPhone's disappearance and requested the investigation into the circumstances surrounding the situation.

Judge Clifford V. Cretan in Redwood City today ruled against the San Mateo County District Attorney's office, which argued that unsealing the documents will reveal identities of potential witnesses and compromise the investigation. Media organizations argued they should have access to the documents based on constitutionally protected free-speech rights.

CNET notes that the 19-page warrant is to be made available to the public within the next several hours, no later than 2:00 PM Pacific Time.

A coalition of media outlets have been pushing for the release of documents related to the search and filed a request last week to have them unsealed. In an initial ruling, one San Mateo County judge declined to unseal the documents and referred the case to Cretan, who had originally issued the warrant. Cretan reportedly decided today to unseal the search warrant after ascertaining that public knowledge of its contents will not compromise the ongoing investigation.

Update: CNET has been updating its story with excerpts from an affidavit from a San Mateo County detective related to the search warrant request, including a disclosure that Apple CEO Steve Jobs personally contacted Gizmodo editor Brian Lam to request the return of the iPhone.

Sewell told me that after Gizmodo.com released its story regarding the iPhone prototype on or about 4/19/2010, Steve Jobs (Apple CEO) contacted the editor of Gizmodo.com, Brian Lam. Jobs requested that Lam return the phone to Apple. Lam responded via the e-mail address...that he would return the iPhone on the condition that Apple provided him with a letter stating the iPhone belonged to Apple.

Barron's points to a research report from Stratfor Global Intelligence noting that 44 Chinese workers are preparing to file a lawsuit against LCD manufacturer Wintek after dozens of workers have been hospitalized due to poisoning from n-hexane used to clean iPhone screens.

Stratfor notes that at least 62 Wintek workers have been hospitalized since August 2009 due to n-hexane poisoning, a chemical "which can cause nerve damage and sometimes paralysis."

The note also cites media reports claiming that the factory manager had forced the company's workers to use the chemical instead of a safer alcohol product because of either faster drying times or reduced streakiness.

The Stratfor post says that according to some media reports, the factory manager in Suzhou made the workers use the chemical because it dries faster than alcohol, while other reports said it was used because it leaves fewer streaks than alcohol. The piece notes that the factory manager has since been fired.

The Stratfor article also claims that reports have suggested that the change to using n-hexane was made at Apple's request.

In addition to the iPhone, Wintek has been a primary supplier of touchscreens for the iPad. "Manufacturing bottlenecks" at the company have been blamed for tight supplies of the iPad, although a report has suggested that Apple is shifting even more production to the company as other partners have also struggled with delays.

The U.S. International Trade Commission (ITC) yesterday announced that it has agreed to investigate claims made by Apple last month against Kodak over alleged patent infringement.

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain digital imaging devices and related software. The products at issue in this investigation are digital still cameras, digital video cameras, and related software.

The investigation is based on a complaint filed by Apple Inc., f/k/a Apple Computer, Inc., of Cupertino, CA, on April 15, 2010. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of digital imaging devices and related software that infringe patents asserted by Apple. The complainants request that the USITC issue an exclusion order and a cease and desist order.

Apple filed the complaint in response to lawsuits and ITC complaints filed by Kodak against Apple and Research in Motion back in January. The ITC agreed in February to investigate those complaints.

Meanwhile, former user interface design studio MONKEYmedia yesterday announced that it has filed a patent lawsuit against Apple alleging infringement of three of its patents. MONKEYmedia CEO Eric Bear also took the opportunity to echo the words of Apple CEO Steve Jobs from the press release announcing that Apple had filed suit against HTC in early March.

MONKEYmedia today filed a lawsuit against Apple, Inc. for infringing claims in three of MONKEYmedia's Seamless Contraction patents. Apple's infringement involves its user interfaces for document summarization, RSS readers and video players that can display multiple versions of text and/or audiovisual content. The lawsuit was filed in the Western District of Texas - Austin Division.

"We can sit by and watch Apple continue to use our patented inventions without paying, or we can do something about it," said Eric Bear, MONKEYmedia's CEO. "Synergy between inventors and manufacturers is healthy, and we love that Apple believes in our technology. We simply prefer open communications and fair compensation."

MONKEYmedia exited the user interface design business in 2001 and since that time has been focused on leveraging its patent portfolio.