Video: High fives and hype at Boston’s new Apple Store
There was no lack of enthusiasm — or videography — at Thursday’s opening of the company’s new flagship store in Boston. Thousands of fans turned up and at least a dozen videos have already been edited and posted on YouTube; three representative clips are pasted below the fold.
Anyone who hasn’t been to one of these events might find these images shocking.
It’s one thing to stand in line for hours and share in the growing excitement and anticipation. It’s another to watch it cold, from the outside. There’s a lot of stage-managed hysteria here, whipped up by blue- and orange-shirted Apple staffers working from a script. It’s like a college-town pep rally with just a whiff of Nuremberg.
But what the hell. The fanboys like it, and it sells computers. A lot companies would kill for the kind of loyalty Apple (AAPL) can command.
Videos below, as promised:
iPhone rollout: 42 countries, 575 million potential customers
Piper Jaffray analyst Gene Munster summarized the flood of recent iPhone deals in a note to clients Friday. The key numbers:
- 46 carriers announced to date (up from 6 currently)
- 42 countries covered (up from 6)
- 575 million total available market (up from 153 million)
Munster had expected Apple to announce a flurry of deals with overseas carriers in 2008, but not this fast. “The iPhone’s international rollout,” he writes, “is about 8 months ahead of our original schedule.”
Assuming that the device maintains its current 3% market penetration, the recent announcements give Munster “increased confidence” that Apple will meet his published sales target of 12.9 million iPhones in calendar year 2008.
Well they should, since 3% of 575 million is 17.25 million iPhones.
For 2009, Munster is sticking with his estimate of 45 million iPhones — a target that represents the high end among mainstream Apple analysts. Apple achieves this, he says, by 1) opening up China and Japan, for a total available market of 1.1 billion, 2) introducing a lower-cost iPhone in January ‘09, and 3) increasing its market penetration to 6%.
As for the current round of deals, Munster believes that most of them are non-exclusive, a change that he expects will have a positive impact on iPhone sales, a slight negative impact on iPhone revenue, but “no material” impact on Apple’s (AAPL) published earnings.
France Telecom to carry Apple’s iPhone to Africa and beyond
France Telecom’s wireless subsidiary Orange laid out expansion plans on Friday that will extend its iPhone market beyond France’s borders and into Europe, the Middle East, Africa and the Caribbean. The news came a one-sentence press release:
“Orange today announced a new agreement with Apple to bring the iPhone to Orange customers in Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland and Orange’s African markets later this year.” (link)
Orange’s African markets include — in addition to Egypt — the Ivory Coast, Jordan, Cameroon, Botswana, Madagascar, Mali, Senegal, Mauritius, and Réunion.
In the Caribbean, Orange services — in addition to the Dominican Republic — Martinique, French Guiana, Dominica, Saint Kitts and Nevis, but those islands were not mentioned in the release.
Also missing from the announcement was any word about Spain, the largest European country still without an iPhone carrier.
Some or all of these deals are nonexclusive. Swisscom has already announced plans to offer the iPhone in Switzerland, Vodafone will carrying it in Portugal and Egypt and America Movil has already called the Dominican Republic.
[UPDATE: According to AppleInsider, a spokesperson for France Telecom says that the carrier will be the exclusive iPhone provider in Belgium and Romania, with co-exclusive or non-exclusive deals in other countries.]
All told, France Telecom (FTE) has more than 172 million customers in five continents, two thirds of whom are Orange customers.
The real empire builder in all this, of course, is Apple’s (AAPL) Steve Jobs, who has timed each news release over the past few weeks so that his cards are laid on the table one deal at a time. It’s all part of the build-up to his June 9 keynote and the expected unveiling of a second-generation, 3G iPhone.
Anatomy of a rumor: The Atom-powered Newton iPhone
As Winston Churchill might have put it, an Apple rumor can fly halfway around the world before truth has a chance to get its boots on.
Case in point: the iPhone mini-tablet story that broke Wednesday afternoon in Germany.
It started with a bad computer an English translation of a sloppy dispatch in the German language version of ZDnet. Under the headline “iPhone kommt mit größerem Display und Intel Atom,” ZDNet.de reported on a speech given by Intel Germany CEO Hannes Schwaderer in Munich. The key passage, as machine-translated, edited and re-broadcast by MacRumors:
As part of an Intel event for the 40th birthday of the semiconductor company at Munich’s BMW World, Germany managing director Hannes Schwaderer confirmed today what has long been a rumor on the Internet: namely, that there is an iPhone with Intel’s new Atom chip. The device is slightly larger than the current version, Schwaderer said. That is not, however, because of the Intel chip, but because of the larger display used in the new iPhone. (link)
MacRumors’ Arnold Kim helpfully added that this correlated with “circulating rumors” that Apple was working on a mini-tablet (720×480) device.
That’s all it took. By Thursday morning, there were 15 headlines on Techmeme echoing and amplifying the ZDNet report, among them:
- Valleywag: “Intel Atom to be used in new, larger iPhone”
- Gizmodo: “Intel Germany CEO Spills on Atom-Based Mini-Tablet iPhone”
- Engadget: “WWDC to launch a 3G iPhone and Atom-based MID device?”
AppleInsider ran a Photoshop rendition of a Newton-size iPhone and reminded readers that the device Intel Germany’s CEO now “vouches” for was first reported by AppleInsider last September. (link) Seth Weintraub in Computerworld went so far in his tablet-iPhone speculation as to post a bar graph of benchmark tests comparing the Atom to predecessor chips. (link)
The only trouble with all of this is that it’s not true, as Intel (INTC) PR took pains to point out in ZDNet’s next-day quasi-retraction.
Intel specifically “disclaimed” the report that started it all. Intel Germany’s CEO was only making general remarks about the kind of mobile devices the Atom might power in the future and did not mean to speculate about future Apple (AAPL) products. He mentioned the iPhone in this connection, according to Intel, only as an example of a small Internet device.
“Intel knows nothing over future products of other manufacturers and can therefore over it also nothing say,” press spokesman Mike Cato told ZDNet in a quote that probably sounded better in German than it does in Babel Fish translation. (link)
[UPDATE: MacRumors' Kim stands by his German-to-English translation (duly noted, and corrected above) and notes that ZDNet now points to second account of Schwaderer's speech from PCGamesHardware.de:
"PCGH-Editor Daniel Waadt was there as well an can attest, that Schwaderer referred to the iPhone as an example for the use of the atom-processor from Intel. The Intel CEO mentioned furthermore, that the display on iPhone 2 would be bigger than on iPhone 1 (although it is already quite big). iPhone 2 is also thinner than iPhone 1." (via MacRumors, translated "by Leo from Fscklog")
We leave it to the reader to determine if this confirms the existence of the mini-tablet iPhone.]
AT&T promises Wi-Fi speeds on its 3G network by 2009
How fast will the new iPhone run on AT&T’s 3G network?
Plenty fast, according to promises made by AT&T (T) mobility chief Ralph de la Vega at Morgan Stanley’s annual Communications Conference on Wednesday.
De la Vega said that a version of the network was already running in AT&T labs at 7.2 megabits per second, which according to AppleInsider’s Katie Marsal is double the theoretical throughput of the company’s HSPA (High Speed Packet Access) network. (link)
It also happens to match the specs of the Infineon (IFX) SGOLD3 chip Apple has reportedly chosen to serve as the new iPhone’s cellular modem. See here.
Throughput of 7.2 Mbps would put the 3G iPhone within spitting distance of Wi-Fi speeds, which typically run between 6.5 Mbps and 20 Mbps.
But de la Vega didn’t stop there. According to Marsal, he told the Morgan Stanley audience that sometime in 2009 the company will transition to HSPA release 7, which could deliver speeds “exceeding 20 megabits per second.” (link)
Of course, we won’t know how fast Apple’s (AAPL) 3G iPhone really is until someone gets their hands on one and runs some good benchmark tests in the wild. AT&T EDGE network, after all, is rated at up to 236.8 kbps, but when put to the test, actual throughput turned out to be in the 50 to 90 kbps range (see here).
In February, AT&T said it expected to deliver 3G services to some 350 leading U.S. markets before the end of 2008, including all of the top 100 U.S. cities (link). Owners of 3G iPhone in the other U.S. markets will have to make do with EDGE — or whatever stray Wi-Fi signals they manage to pick up.
Swisscom confirms iPhone deal; Apple’s available market nears 500 million
Less than a week after press reports that a deal had been reached, Swisscom on Wednesday confirmed that it will be bringing Apple’s (AAPL) iPhone to Switzerland this summer.
For a country known for its discretion, Switzerland has been a hotbed of iPhone rumors lately. The one getting the most buzz was posted Tuesday on MacPrime’s Swisscom iPhone forum by a reader named dakis. Dakis provides price points, a June 20 delivery date and three colors: silver, black and white — none of which sounds quite right.
Swisscom (SWJ.F) is Switzerland’s largest mobile phone carrier, with 5.1 million mobile subscribers, and one of its biggest IT providers. Wednesday’s announcement follows a string of deals that more than triples the iPhone’s available market, according to American Technology Research analyst Shaw Wu, from 150 million in the U.S. and Europe today to roughly 470 million worldwide this summer.
[Thanks to 9to5Mac for the tip.]
The New York Times discovers the Mac
When Bill Gates and New York Times (NYT) publisher Arthur Sulzberger Jr. unveiled the Times Reader in April 2006, they demonstrated the program to the American Society of Newspaper Publishers on a tablet PC — a piece of hardware Gates was very excited about at the time.
Tablets still haven’t quite caught on, but the software — which syncs to the Times’ servers and delivers an easy-to-read, paginated version of the paper that can be browsed offline — developed a loyal following. At least among Windows users; more than two years later, there still isn’t a version that runs on the Apple (AAPL) Macintosh.
But there will be. On Tuesday, Rob Larson, VP for digital production at the Times, showed off sample pages of Times Reader for the Mac and announced that a beta version will be available later this month. See here.
Larson also stuck around to answer questions. The service will be free while it’s in beta. After that it will cost $14. 95 a month (about a quarter the price of a print subscription). If you have a home delivery subscription, you’ll get the Times Reader for free.
It’s a Cocoa application that uses Apple’s Safari and Microsoft’s (MSFT) Silverlight plugin to render the pages.
Sex and the iTunes Store
They’re there: Carrie Bradshaw. Tony Soprano. Jimmy McNulty. Jemaine Clement. Seth Bullock. Julius Caesar.
Early Tuesday morning, somebody at Apple’s iTunes Store flicked a switch and six of HBO’s most popular series became available for download for prices ranging from $1.99 to $2.99 per episode. They are:
- Sex and the City: $1.99 per episode
- The Wire: $1.99
- Deadwood: $2.99
- Flight of the Conchords: $1.99
- Rome: $2.99
- The Sopranos: $2.99
As widely reported on Monday, the deal is a breakthrough for both Apple (AAPL) and Time Warner’s (TWX) HBO.
For HBO, which is making individual episodes available for the first time, it’s a chance to expand viewership beyond its 30 million cable TV subscribers to Apple’s broader audience of 50 million registered iTunes users.
For Apple, it’s a strong signal that Steve Jobs has backed away from his stubborn insistence on flat-rate pricing — $1.99 for TV episodes, $.99 for songs — and is ready start a new round of deal making in Hollywood.
On May 1, Apple announced an agreement with Warner Brothers, 20th Century Fox (NWS), Walt Disney (DIS), Paramount (VIA), Sony (SNE) and others to make movies available for iTunes download the same day they are released on DVD at two price points: $14.99 for new releases and $9.99 for older films. (see Apple’s new Hollywood deal)
Could a rapprochement with NBC — which pulled its series off iTunes last December in a dispute over flat rate pricing (see here) — be far behind? The fact that NBC (GE) started streaming free episodes of two of its most popular shows, The Office and 30 Rock, to iPhones last week seems like a promising sign.
[UPDATE: Apple posted a press release this morning. HBO is "excited." Apple is "thrilled."]
Fortune: Apple’s Ive helped design the heroine of Pixar’s Wall-E
It’s no accident that Eve, Wall-E’s sleek, pod-like love interest in the forthcoming Disney/Pixar animated feature film by the same name, looks like something out of Apple’s (AAPL) design department.
Writing in the current issue of Fortune, Richard Siklos reports that Jonathan Ive, head of Apple’s design department and the man responsible for the iMac, iPod and iPhone, had a hand in creating the robot.
In the piece, director Andrew Stanton tells Siklos:
“I wanted Eve to be high-end technology — no expense spared — and I wanted it to be seamless and for the technology to be sort of hidden and subcutaneous. The more I started describing it, the more I realized I was pretty much describing the Apple playbook for design.” (link)
According to Siklos, a call from Stanton to Steve Jobs in 2005 resulted in Ive spending a day at Pixar consulting on the Eve prototype. Siklos writes:
“Stanton said that it was a ‘lovefest’ with Ive, but that the notoriously tight-lipped design wizard offered few specific modifications. ‘Apple is so proprietary and so secretive that he couldn’t even really allude to where the future of technology was going,’ says Stanton. ‘The most he could do is nod his head to the things we said we wanted to do.’ (Through a spokesman, Ive declined to comment.)” (link)
Disney (DIS) bought Pixar in 2006 in a deal that made Jobs Disney’s largest individual shareholder.
Stanton, who directed Finding Nemo, says he’s been kicking around the idea for Wall-E for years, even before Toy Story was made. He has summarized it most succinctly like this: “What if mankind evacuated Earth and forgot to turn off the last remaining robot?”
The movie opens June 27, which is the day the smart money is betting that the 3G iPhone goes on sale.
You can read Siklos’ piece at Fortune.com here.
Apple rings up four new iPhone deals in Asia
The week opens with fresh reports of iPhone agreements with overseas carriers, as Apple (AAPL) continues its push to roll the Web-browsing cellphone out beyond the United States and Europe.
The Wall St. Journal, BBC and other sources reported on Monday that Apple and SingTel have signed deals to bring the iPhone to four countries in the Asia-Pacific region. SingTel, with 124 million mobile subscribers, is said to be the largest Asian provider outside the People’s Republic of China. The deals involve SingTel and three of its subsidiaries:
- SingTel will bring the iPhone to its 2.3 million subscribers in Singapore
- Bharti Airtel will offer it to its 64 million customers in India
- Globe Telecom will offer it to 21 million subscribers in the Philippines
- Optus will offer it to its 7 million customers in Australia.
Australia and India were among the countries that Vodaphone (VOD) said last week that it was covering (see here) — further evidence that Apple is signing contracts that don’t offer exclusivity.
Below: an update of CdnPhoto’s map of the iPhone world, redrawn to include the latest developments.
- Video: High fives and hype at Boston’s new Apple Store
- iPhone rollout: 42 countries, 575 million potential customers
- France Telecom to carry Apple’s iPhone to Africa and beyond
- Anatomy of a rumor: The Atom-powered Newton iPhone
- AT&T promises Wi-Fi speeds on its 3G network by 2009
- Swisscom confirms iPhone deal; Apple’s available market nears 500 million
- The New York Times discovers the Mac
- Sex and the iTunes Store
- Fortune: Apple’s Ive helped design the heroine of Pixar’s Wall-E
- Apple rings up four new iPhone deals in Asia
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