MacRumors

Yesterday, we reported that the developer beta of Apple's iTunes Match appeared to show options for both streaming and downloading content from the cloud to a user's device. But some questions have arisen about just how the service functions, as a new report from AllThingsD shares word from an Apple spokesperson that the service is not actually a streaming one.

While a video making the rounds today makes it seem as if Apple’s upcoming iTunes Match service will stream music from Apple’s servers to a user’s device, that’s not the case. An Apple spokesperson confirms that any music you want to access from your cloud-based “locker” will still need to be stored on your iPad, or iPhone, or whatever device you’re using to listen to the song.

The difference appears to be one of semantics, however, with Apple's claims of the service requiring tracks to be downloaded actually related to local caching of streamed tracks.

Traditional streaming services maintain constant connections, buffering only a small amount of the currently-playing track at any given time. Apple's streaming solution appears to download each track in its entirety once streaming begins. Upon tapping on the track to begin playing without initiating the full iCloud download process, the track begins playing immediately just as with other streaming services. But in reality, the full track appears to be downloaded to a local cache on the user's device, allowing for fast access to any portion of the track.

Once the track has been fully played, it remains available in that cache and can be re-accessed without needing to re-stream, but it is not considered permanently downloaded and is not counted as being in the device's music library. A video from Jeff of iDownloadBlog demonstrates a streamed track being replayed after the device is put into Airplane Mode.

As shown in the video, switching away from the cached track while in Airplane Mode appears to empty the cache, and the device is unable to replay the track if the user returns to it.

The result is a service that acts just like a traditional streaming service, but one which may provide a better experience for users, especially in areas of unstable network coverage for those on the go. As noted by AllThingsD, the reason for Apple's implementation appears to not be due to any lack of a license for full-fledged streaming.

Instead, says music executive X, this is a philosophical/design issue on Apple’s part.

Part of it is that Apple doesn’t trust the current telecom ecosystem to handle on-demand streaming of library files every time someone wants to use them — look how much trouble AT&T has had with the iPhone to date. But the other part is that Apple wants its users to think of entertainment as something they consume on Apple device — as opposed to the Google and Amazon approach, which lets consumers grab anything they want on any device with a browser.

Apple has officially remained vague about just how the service works, but it certainly appears that the company has employed a streaming service with expanded caching capabilities allowing for storage of an entire track. Users also have the option to download tracks directly by tapping on the iCloud icon associated with each track.

Thanks to @insanely_great for assistance and clarification.

Update: This YouTube video walks through the streaming vs not streaming debate.

CNN reports on details of Apple's anti-counterfeiting efforts centered in China, noting that the company has had difficulty winning the cooperation of Chinese authorities to investigate and shut down those responsible for the fake Apple products. The details were revealed in documents from U.S. diplomatic cables published by WikiLeaks last week.

The technology giant eventually organized a team in March 2008 to curtail the explosion of knockoff iPods and iPhones, according to an electronic memo from the Beijing embassy dated September 2008.

Yet, three years after Apple moved to crack down on widespread counterfeiting and put pressure on China, progress has been slow. Gadget piracy isn't a high priority for the Chinese government, the U.S. reports and experts say.

The reports note that Apple's efforts have been led by vice president for global security John Theriault, a former FBI special agent and Pfizer vice president who was hired by Apple after he led a campaign against production of counterfeit prescription drugs. Theriault was joined at Apple by his Pfizer associate Don Shruhan, who now serves as a director with Apple's security team in Hong Kong.

Despite putting the anti-counterfeiting task force together, Apple has had only limited success as Chinese authorities have been reluctant to respond to Apple's requests for assistance. Apple has tried to convince authorities to take a more active role by citing the potential dangers of exploding batteries in counterfeit products and the loss of tax revenue associated with the knockoff products, but Chinese authorities have cited their own reasons for not pursuing the claims.

The arguments weren't very effective. China's government declined to investigate a facility in March 2009 that was manufacturing imitation Apple laptops because it threatened local jobs, says a cable dated April 2009. A different arm of China's government scrapped plans for a raid on an electronics mall in the Guangdong province because it could have driven away shoppers, the cable says.

Last month, several counterfeit Apple retail stores in China gained significant publicity after being highlighted by a popular blog. Two of those stores were closed over permit issues, but dozens more stores have since been discovered. Apple has also sought to crack down on knockoff products in the United States, having recently filed suit against a pair of businesses in New York City selling such goods.

Steve Jobs has been famous for his willingness to interact with customers via email, issuing terse and sometimes surprisingly candid answers to users' questions and complaints on occasion. With Tim Cook now officially taking the reins at Apple, some have questioned whether he has any interest in similar interactions with customers.

Cook has clearly been flooded with emails over the past few days, many of which have offered him congratulations on his new position. Notably, Cook does seem to be taking the time to respond to those emails, suggesting that he may indeed be interested in personal communication with Apple customers. Most of the responses so far seem to have been of a simple nature thanking the senders, although some have included a bit more detail relevant to the senders' content.

One example given in a comment thread on an article at iDownloadBlog comes from a customer who mentioned that he used Apple products to communicate with his family from Iraq, to which Cook responded thanking him for his military service. Another example comes via an Auburn University fan, who connected with Cook, an Auburn graduate and devoted fan himself, over the school. Cook included in his reply a mention of Auburn's famous "War Eagle" battle cry.

Apple has historically paid close attention to emails sent to Jobs, and will likely continue to do so with Cook. One example of Apple's tracking of executive email contacts has been provided to MacRumors, showing Apple's efforts to respond to early criticisms of its MobileMe service, which experienced a series of missteps at its mid-2008 rollout. According to an internal Apple presentation highlighting the status of MobileMe support issues in early 2009, Apple closely tracked on a day-by-day basis the 242 MobileMe complaint emails sent to Steve Jobs over the first six months of the service's history.

Apple support staff analyzed each of the 242 MobileMe-related emails sent to Jobs over that period, categorizing them by "root cause" in order to better understand where customer complaints were coming from.

Jobs of course remains as Chairman of Apple's board of directors, and his email address presumably will remain active. It is unknown, however, if he will continue to answer customer emails sent his way now that he has stepped down. Jobs does not appear to have answered many emails, if any, in recent months, and thus he may have already stepped away from that communication channel.

And while customers hoping that channels to the chief executive remain open under Cook may be heartened by his recent responses, it remains to be seen whether he will continue to engage with customers via email once the flood of congratulatory messages passes and the emails become more focused on questions and complaints.

Apple released a developer beta of the iTunes Match system this evening. The system is described by Apple as follows:

iTunes Match stores your complete music library in iCloud, allowing you to enjoy your collection anywhere, anytime, on any iPhone, iPad, iPod touch, or computer.

Insanely Great Mac provides this nice walkthrough video which shows you how the service works. It also shows that this is both a streaming and downloading service.

For the $25 yearly fee, iTunes Match will scan your existing iTunes music library and allow you to access it from any of your iTunes-linked Macs or iOS devices. Songs that already exist in Apple's iTunes music store will be streamed straight from Apple's master copy (at 256kbps bitrate) without a need to upload the songs yourself. Songs that don't exist in iTunes will be uploaded to iCloud. Either way, all your music (up to 25,000 songs) will be accessible from your various computers and iOS devices.

What wasn't clear before is the fact that music can be either streamed or downloaded locally to any of your computers or devices. While the video only shows the service on a Mac, we've confirmed it works the same way on iOS devices. So, essentially, you will have instant access to your entire music library from all of your Macs, iPhones, iPads, or iPod touches for only $25/year. This ability on your iOS devices means your music library won't need to take up valuable space on the device itself, as long as you have some sort of internet connection.

iTunes Match is expected to launch alongside iOS 5 this fall.

Update: Insanely Great Mac has now posted a video showing how it works on an iOS device:

iTunes Match was released to developers today in an email from Apple:

In the email, Apple notes that beta subscribers will receive an additional 3 months free with their $24.99 paid subscription to cover the beta plus the standard 12 months after launch.

Apple also advises customers to maintain a local backup of their iTunes library and any music they add to iCloud. "Apple will periodically reset your iCloud library during the beta and it is critical that you backup your music regularly. Some features and optimizations of iTunes Match will not be available during the beta."

iTunes Match will give users the same benefits for their downloaded and ripped music as those purchased from the iTunes Music Store, up to 25,000 songs, for $24.99/year.

Apple appears to be preparing a 10.6.9 update to Mac OS X Snow Leopard in order to provide compatibility with the company's upcoming iCloud service. The following notice appeared in one developer's .Mac preference pane in Tiger after he had upgraded his MobileMe account to iCloud.

According to the notice, users will have to upgrade to a minimum of an as-yet unreleased Mac OS X 10.6.9 in order to sync select content via iCloud.

You will no longer be able to sync with this machine because you've upgraded to iCloud.

iCloud requires a computer running Mac OS X Snow Leopard v10.6.9 or later for Contacts, Calendars, and Bookmarks.

Apple so far has only been testing iCloud for OS X Lion with developers, regularly pushing out new builds of OS X 10.7.2, iCloud software and Photo Stream-enabled iPhoto 9.2 as it moves toward a public launch of iCloud.

Apple has been quiet about absolute minimum system requirements for iCloud, although it notes on its promotional pages that some features will require OS X Lion.

Some features of iCloud require iOS 5 on iPhone 3GS, iPhone 4, iPod touch (3rd and 4th generation), iPad, or iPad 2, or a Mac computer with OS X Lion or a PC with Windows Vista or Windows 7 (Outlook 2007 or 2010 recommended).

Apple has already confirmed that syncing of Mac Dashboard widgets, keychains, Dock items, and System Preferences are not making the transition from MobileMe to iCloud for any users, but if the alert notice being delivered to iCloud users on Mac OS X Tiger is correct, it seems that at least minimal iCloud functionality may be coming to Mac OS X Snow Leopard in the form of a full maintenance release.

Last week, a prototype back panel for Apple's "N94" iPhone surfaced, revealing a nearly identical appearance to the iPhone 4. The part was an "Engineering Verification Test 2" component carrying a date of June 7th, 2011, but questions have continued about whether the device represents the upgraded iPhone 5 or an "iPhone 4S" designed to be a cheaper model based on the iPhone 4 design.

MacPost has now obtained photos of a similar front panel part in black, carrying a similar "Engineering Verification Test 1" designation and dated March 3rd, 2011. The part consists of the entire front assembly for the N94 device, including the digitizer panel itself and the LCD.

The design is entirely consistent with the iPhone 4, showing the same amount of bezel edge on the sides of the screen and a hole for the traditional iPhone home button.

The panel part shows same bezel space on the sides of the display, as well as similar space between the screen and the home button and top ear piece, when compared with iPhone 4. If you compare the digitizer component, it is exactly the same as that of iPhone 4 model. The home button might not be going anywhere and the cut-out area for Home Button is still circular which debunks earlier claim that iPhone 5 will get an elongated Home Button (rather capacitive).

With continued reports of a redesign for the iPhone 5, perhaps with a metallic back, the interpretation of these parts points toward them being from the "iPhone 4S". We have yet to see, however, any leaked parts from the rumored form factor redesign of the iPhone 5.

Nearly a month ago, Australia became the first market to see Apple win a tangible victory over Samsung in the patent dispute between the two companies, with Samsung agreeing to delay the launch of the Galaxy Tab 10.1 in that country and to provide Apple with samples of a version of the device specific for that country at least one week ahead of the launch.

The Sydney Morning Herald now reports that Samsung has again agreed to delay the launch of the device in Australia, pushing the debut out to at least September 30th. The agreement came after Samsung provided Apple with samples of the Australian version of the Galaxy Tab 10.1 late last week in anticipation of launching the device at the end of this week. Apple unsurprisingly considered the Australian Galaxy Tab 10.1 to still infringe upon its intellectual property rights and requested new and extended injunctions to prevent Samsung from selling the device until the dispute can be resolved.

Apple's counsel said that while the modified version had "some reduced functionality" it "will still infringe". They sought orders from the court re-affirming the previous block on sales of the US model and asked for a new order to prevent the sale of the Australian version at least until a hearing can take place at the end of September.

For its part, Samsung has indicated that it is looking to invalidate Apple's iPad design patents and will also be filing claims against Apple for infringement by the iPad.

A new formal hearing in Apple's case against Samsung has been scheduled for September 26th and 29th, with "top executives" and others involved in the design process for the iPad and Galaxy Tab potentially appearing either in person or via video link to testify.

PCMag asks the question "How Will Tim Cook Lead Apple?" after the surprise resignation of Steve Jobs last week. They offer some quotes from an ex-Apple employee and a look back at a detailed Fortune profile of Cook from back in 2008.

Fortune's Tim Cook profile came at a time when there were some ongoing health concerns about Steve Jobs which raised the question of who would take over upon Jobs' departure. The Forbes profile describes Cook as "demanding and even-keeled" and credits Cook for keeping Apple running like a finely tuned machine, keeping tabs on supplies, production and product forecasting.

Think of Cook's contribution like this. There are two basic ways to get great profit margins: Charge high prices or reduce costs. Apple does both. The marketing and design drive consumers wild with desire and make them willing to pay a premium; Cook's operational savvy keeps costs under control. Thus Apple is a cash-generating machine. Cook has called the company a place that is "entrepreneurial in its nature but with the mother of all balance sheets."

One ex-Apple employee speaking to PCMag simply states that "Tim Cook is the person who really runs Apple", but that they don't see him as "that visionary guy" to replace one of Steve Jobs' major roles at the company.

It's that role of visionary that many feel will be hard, if not impossible to replace. Salesforce chief executive Marc Benioff aptly described Jobs ability to show him the future:

“[Steve Jobs] has probably given me more help and more advice than just about anybody," Benioff said of Jobs. "And when I get in trouble and I kinda get lost in my own vision, I’ve been fortunate to be able to go and see him and he’s been willing to show me the future a couple times.”

The general consensus, of course, is that it's simply not realistic to expect any one person to replace Steve Jobs. From the same 2008 Fortune article, they point out that Cook will simply need people around him to make up for any weaknesses, just as Jobs had Cook around to make up for his.

Digitimes offers a bit of a strange report this morning that just seems to reinforce some details that have been previously reported about the iPhone 5.

The strangest bit, however, is that their report attempts to refute a fake "leak" video that circulated on YouTube earlier this month.

Despite rumors about iPhone 5 featuring a 4.2-inch panel circulating within the IT market for a while, following a leak from Apple's website in Switzerland in early August

The referenced "leak" video was a clear fake. They seem to have taken the video seriously, but at the least they refute the details of the leak citing "upstream panel suppliers."

Instead, their sources indicate the iPhone 5 will include a 3.5 to 3.7-inch panel "with a design to allow the bezel of the panel to become thinner and make the screen look larger." They also report that the glass back of the current iPhone 4 will be changed to a "metal chassis".

Despite the confused nature of the report, these details come at an interesting time, as the vision of the iPhone 5 has become increasing confused.

Last week, we saw a number of part leaks for a device that looks just like the iPhone 4, but carrying an upgraded A5 processor. That device carried an internal name of 'N94' which was previously believed to be the iPhone 5. Over the last few months, multiple conflicting sources have described the iPhone 5 as both thinner and lighter as well as largely identical to the iPhone 4. The "largely identical" report came from Reuters who did say that the new device would have a "bigger touch screen".

The only concrete design that we've seen is one of a leaked design spec but we've not yet seen any related parts leak out into the supply system.

Rumors of an Apple-branded television set were revived earlier this year by a former Apple executive, and we've long seen similar claims in the past. The frequency of these rumors, however, seems to be increasing, now with Venturebeat pointing to multiple sources suggesting the same.

Venture capitalist Stewart Alsop who sits on the board of Sonos and was an early investor in TiVo told the site that "he has heard multiple sources throughout Silicon Valley that the Apple television project is underway."

Piper Jaffray analyst Gene Munster also cites component suppliers as well as an internal Apple source to suggest the same -- that Apple is planning on launching a television in the 2012/2013 timeframe. Munster isn't the only analyst who has predicted an Apple television, and we've heard whispers from others.

It seems that momentum is picking up for rumors that Apple is heading into the television marketplace. Yet as recently as 2010, now Apple CEO Tim Cook had said that Apple had no interest in the TV market, but did feel there is "something there" to the Apple TV, Apple's $99 set-top-box. Later that year, Steve Jobs had also outlined the challenges of infiltrating the television industry.

Jobs, of course, had also denied that Apple had any interest in producing an Apple cell phone back in 2003, four years prior to the launch of the original iPhone.

Yesterday, The Wall Street Journal briefly reported that Apple is working on "new technology" for pushing video content to televisions, apparently linking that work with revived rumors of a subscription TV service. Rumors of such of a service first surfaced in late 2009, but by the iPad launch in March 2010, Apple had been said to have put the plans on hold in the face of opposition from media companies.

But despite The Wall Street Journal's revival of the rumors yesterday, CNET insists that such an offering will not be coming in the near future, if ever, pointing back to a report earlier this month shooting down rumors of an imminent "iTunes Replay" streaming service for movies. The report also cites today's removal of TV show rentals from iTunes as evidence that Apple is moving backwards on the streaming TV front rather than making progress on any subscription deals.

Now does this sound like the studios are willing to back a new subscription service from Apple or for anyone else for that matter? No. Don't put any stock in the rumors that began circulating today. My sources at the studios said three weeks ago that an Apple subscription service is not coming anytime soon, if ever.

The report goes on to note that while Apple has over the course of negotiations with media companies suggested a number of potential business models, the company has yet to seriously push forward on any subscription TV proposals. The company instead seems to be focused more on basic cloud services that would allow users to download or stream purchased content from Apple's servers as needed.

Apple filed a form 8-K with the SEC because of the changes in corporate leadership at the company. An 8-K is the “current report” companies must file with the SEC to announce major events that shareholders should know about.

In this case, the form notifies investors of the resignation of Steve Jobs as CEO; Jobs' appointment as Chairman of the Board; COO Tim Cook's promotion to CEO; and the appointment of Cook to the Board.

Additionally:

In connection with Mr. Cook's appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook's continued employment with Apple through each such date.

This stock award is worth just over $383 million at current prices.

A restricted stock unit, or RSU, is a form of compensation valued in terms of company stock, but the stock is not issued at the time of the grant. In Cook's case, he's getting a promise from Apple to deliver him 500,000 shares of Apple stock in 2016, and 500,000 more shares in 2021 — as long as he stays employed at the company.

In 2010, as COO, Tim Cook received $58 million in salary, bonus and other stock awards.