MacRumors

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.

World of Apple reports that Apple has seeded a new version of Mac OS X 10.6.4, termed Build 10F50, to select developers. According to the report, the update now weighs in at 581.3 MB and contains one documented minor issue.

Apple has also revised the seed notes accompanying the release to highlighting what it considers the most significant fixes brought in the update so far, including addressing issues with keyboard/trackpad unresponsiveness, Adobe CS3 application launching, and photo editing in full-screen mode on both iPhoto and Aperture. The notes also report that Apple has made improvements to VPN reliability, VoiceOver compatibility with iMovie and GarageBand, and braille display compatibility.

According to today's report, Apple continues to ask developers to focus their testing on the same five areas documented in the previous build seeded last week: GraphicsDrivers, SMB, USB, VoiceOver, and VPN.

Not entirely surprisingly, Wi-Fi Sync has been rejected from the App Store. We profiled the app in April. Wi-Fi Sync enabled users to wirelessly sync their iPhones with their computers via a local Wi-Fi network. The developer had submitted it to Apple with hopes that they would approve it for sale through the iTunes App Store. As many suspected, Apple rejected the app. Engadget cites the explanation the developer received from Apple.

"While he agreed that the app doesn't technically break the rules, he said that it does encroach upon the boundaries of what they can and cannot allow on their store. He also cited security concerns."

The developer is now distributing it outside the App Store on jailbroken phones for $9.99.

Most people seemed to expect that Wi-Fi would be rejected by Apple due to the unconventional nature of the app, but many were hoping to finally add wireless syncing as a feature to their iPhones.

The reason everyone is so interested in the leaked Apple iPhone goes beyond natural interest in the product. It's just that Apple usually does such a good job at keeping the their hardware under wraps. The lost iPhone(s) are easily the largest leak in the company's history.

Of course, Apple's labs are always brimming with activity, and many of these prototype designs eventually fall into the hands of collectors in the years to come. Here are a few interesting ones that were successfully designed behind closed doors.

A clear-case Prototype Apple Mouse apparently given to some Apple employees. It's labeled "Prototype" on the bottom and lights up when the it's plugged in.

A metal industrial design prototype of the Apple Macintosh G4 Cube. The production cube was, well, closer to the dimensions of an actual cube. The final Cube design was actually leaked prior to its release, though there were a lot of doubts about its authenticity at the time.

Apple's tablet efforts go back a long way. This PenLite design is from 1992 and represents a pen-based Mac built from a Powerbook design.

Patently Apple points to a newly-published patent application from Apple describing temporary proximity-based or location-based applications that could appear on a user's iPhone or other mobile device when in a specific area. Content would be managed by a central server that would pair a device's location as relayed by Wi-Fi connections or other means and deliver appropriate applications based on that location.

The idea is simple. Deliver a location based service to information savvy iPhone users that wish to receive temporary retail and service-based applications. Imagine standing at the entrance of a restaurant and viewing their menu on your iPhone or entering a public library and being able to access their database. The minute you leave the library or the front of that restaurant, the app disappears so that you don't clog up your iPhone with hundreds of local business apps.

In the patent application, Apple offers several examples of how this technology might be used:

- Restaurant: The patent application describes two possible uses of location-based temporary applications that could prove useful to a user approaching a restaurant. The first is a "Wait Time" icon that would automatically tell the user how long the current wait is to be seated at the desired restaurant. A second "Place Order" icon could allow users to access a restaurant's menu on their device and submit their food orders electronically.

- Public Library: Upon entering a library, a user could see an application automatically appear on their device that would allow them to search the library's digital database of books and other content without having to secure a position at one of the library's linked computers. The application could then automatically disappear from the user's device once they exit the building.

The patent application is solely credited to Apple engineer Scott Herz and was filed in November 2008.

It was almost getting absurd. We posted a link to BeGeek who posted some new images of the leaked 4th Generation iPhone. As it turns out, they simply obtained those images from the Vietnamese leak on Taoviet.vn.

That means there were still "just" three leaked 4th generation iPhones that we are aware of: Gizmodo's, Taoviet's, and an early Twitter leak.

Interesting to note is that these three devices are distinct. The Gizmodo model was labeled "DVT", the Taoviet model "PRO2", while the original Twitter leaked model is labeled "EVT1". All these models are presumably from different stages of development.

Silicon Alley Insider reports on a blog post that briefly appeared on the site of television streaming service Hulu announcing a number of new features for the service. In addition to announcing the new features, the blog post, which has since been pulled for unknown reasons, also revealed that the company has decided against adopting HTML5 for the time being, preferring to stick with its existing Flash-based player. The decision means that iPhone and iPad users should not expect to see Hulu in their browsers in the near future. This doesn't eliminate the possibility of an iPad or iPhone app.

When it comes to technology, our only guiding principle is to best serve the needs of all of our key customers: our viewers, our content partners who license programs to us, our advertisers, and each other. We continue to monitor developments on HTML5, but as of now it doesn't yet meet all of our customers' needs. Our player doesn't just simply stream video, it must also secure the content, handle reporting for our advertisers, render the video using a high performance codec to ensure premium visual quality, communicate back with the server to determine how long to buffer and what bitrate to stream, and dozens of other things that aren't necessarily visible to the end user. Not all video sites have these needs, but for our business these are all important and often contractual requirements.

That's not to say these features won't be added to HTML5 in the future (or be easier to implement). Technology is a fast-moving space and we're constantly evaluating which tools will best allow us to fulfill our mission for as many of our customers as possible.

Rumors of Hulu on iPhone OS devices have been somewhat popular, beginning with an April 2009 claim that an iPhone version would be appearing "within a few months". The iPad's arrival set off a new round of rumors, with suggestions that the platform could serve as a testing ground for a Hulu subscription service apparently set for introduction later this month.