Jordan Ostreff

Yesterday, a report from the Shanghai Evening News including comments made by Apple marketing chief Phil Schiller about Apple's refusal to build "cheap" devices was widely re-reported throughout both the Apple-focused rumor scene and in mainstream media.

Schiller's comments were viewed by some as a direct rebuttal to recent rumors from The Wall Street Journal and Bloomberg that Apple is working on a less expensive iPhone for launch as soon as later this year, although he actually appeared to simply be noting that any product Apple releases would not sacrifice quality in order to grab market share at lower price points.

Reuters has now issued a brief statement retracting its re-reporting of the Shanghai Evening News piece, citing "substantial changes" to the source article. Reuters will not be publishing an amended version of its story.

It is unclear exactly what changes Reuters is referring to, as the online version [Google translation] of the Shanghai Evening News piece appears to be essentially the same as when it was first covered by English-language media.

Still, the retraction by Reuters casts significant uncertainty on the original report and raises questions about whether Schiller's comments were mistranslated or misinterpreted.

Update 12:30 PM: Reuters has now published an explanation for its retraction, citing the changes made to the original Shanghai Evening News article.

[I]n a new version of the story published after the original, the Shanghai Evening News removed all references to cheaper smartphones, except for a mention of a "cheaper, low-end product." It also amended its original headline from "Apple will not push a cheaper smartphone for the sake of market share," to "Apple wants to provide the best products, will not blindly pursue market share."

Apple confirmed the interview had taken place and that it had contacted the Chinese newspaper about amending its original article, but had no further comment and declined to provide a transcript of the interview.

Xerox today announced that Chief Financial Officer Luca Maestri is leaving the company to take the position of Corporate Controller at Apple. The move will be effective February 28.

"Luca is a stellar finance executive whose contributions have brought great value to the transformation of Xerox into a services enterprise,” said Ursula Burns, Xerox chairman and chief executive officer. "He's helped strengthen our financial foundation, which will serve his successor, our company and our shareholders well for the long term."

At Apple, Maestri will succeed Betsy Rafael, who retired last October. Rafael had served as Corporate Controller and Principal Accounting Officer, and the role of Principal Accounting Officer shifted to Chief Financial Officer Peter Oppenheimer upon her retirement.

In a new interview with AllThingsD, Beats Electronics CEO Jimmy Iovine reveals that he is preparing a subscription music service. Although he isn't revealing details yet, he does say that he started pitching the service to Steve Jobs in 2003.

In 2002, 2003, Doug [Morris, former Universal Music head] asked me to go up to Apple and see Steve. So I met him and we hit it off right away. We were really close. We did some great marketing stuff together: 50 Cent, Bono, Jagger, stuff for the iPod — we did a lot of stuff together.

But I was always trying to push Steve into subscription. And he wasn’t keen on it right away. [Beats co-founder] Luke Wood and I spent about three years trying to talk him into it. He was there, not there … he didn’t want to pay the record companies enough. He felt that they would come down, eventually.

I don’t know what [Apple media head] Eddy Cue would say — I’m seeing him soon — but I think in the end Steve was feeling it, but the economics...he wanted to pay the labels [for subscriptions], but [the fees were] not going to be acceptable to them.

Recently, music streaming services like rdio, Pandora and Spotify have become increasingly popular and Apple is rumored to be working on a Pandora-like "iRadio" streaming service. Iovine mentions that his streaming service would be heavy on curation, like Pandora, rather than simply giving users access to millions of songs like Spotify. Apple's rumored streaming service is said to take the same approach, which makes sense if Jobs did like Iovine's pitch.

Beats and Apple do have a fairly close relationship already, as Apple retail stores tend to use Beats by Dre headphones to demo iPods and other devices.

Rovio has updated its Angry Birds Space game with a 'Pig Dipper' update that brings the game's first aquatic worlds with new physics, as well as new power ups as well. Angry Birds Space was originally released last March, was the bestselling paid app of 2012, and has remained among the top paid apps ever since.

SPLASH! The Angry Birds have landed in the weirdest galaxy yet! All the planets are filled with water, strange aquatic life and worst of all -- Bad Piggies in boats! Use the unique physics of these water planets to set up some fun trick shots! Also, check out the brand-new power-ups: Flock of Birds, Space Egg, and Pig Puffer! HINT: Make sure to check how Ice Bird and Pig Puffer react to water!

Angry Birds Space is available for the Mac, iPhone and iPad from the App Store, though it appears the Pig Dipper update has not gone live on the Mac App Store yet. [Direct Link: Mac/iPhone/iPad]

An enormous iPhone has been unveiled in St. Petersburg, Russia, as a tribute to former Apple CEO Steve Jobs, who passed away in October 2011 from pancreatic cancer.

The six-foot-tall sculpture, which resembles a black iPhone 4, was brought to life by designer Gleb Tarasov, according to The Daily Mail. Though the phone is not equipped with a touch screen, it does display a photo and video slideshow of Jobs' life, including important events and well-known speeches.

Located in the courtyard of the St. Petersburg National Research University of Information Technologies, Mechanics, and Optics, the giant iPhone also features a QR code that links to a memorial website.


It is the product of a competition that was held by the Progress IT fund last year, which held a contest to decide who would design the monument. Tarasov, who titled his original proposal "Sunny QR Code," was chosen from more than 200 entrants as the winner, although the final result is a substantial departure from his original submission based around a dynamic QR code readable only in the mid-day sun.

The memorial was officially unveiled yesterday, marking the 12th anniversary of iTunes and the 6th year since the iPhone was originally revealed by Jobs at MacWorld 2007.

Original link:   Phil Schiller Says Apple Wouldn’t Sacrifice Quality for Market Share in a Cheaper iPhone

Apple's 27-inch iMac continues to be in short supply, with Apple quoting 3-4 week shipping estimates for new online orders, compared to shorter but still substantial 7-10 day estimates for the smaller 21.5-inch models. Even before launch, the new iMac was projected to be in short supply into 2013, due in large part to issues with Apple's new display assembly process that includes laminating the display directly to the machine's cover glass.


Digitimes now reports that the display lamination issue is still a problem for Apple supplier LG Display, with the larger 27-inch panels seeing lower yields than the 21.5 inch displays.

LG Display has reportedly been facing full lamination issues while producing the panels, slowing down shipments of the 27-inch device to 100,000 units a month, added the sources.

LG Display, however, has secured strong yields for Apple's new 21.5-inch model, which currently has reached monthly shipments of 300,000-400,000 units, noted the sources.

The report does claim, however, that LG is moving toward better yields of the larger displays, with greater availability set to come next month. The improved yields should reduce what appears to be the main bottleneck in iMac production, thus leading to greater availability and shorter shipping estimates for new orders.

Apple's redesigned iMac is considerably thinner than its predecessor and contains 40% less volume, changes that have been enabled by a number of technological advancements such as the lamination to create thinner and more vibrant displays and the use of advanced welding techniques. Those advancements have not come without challenges, however, as seen with the displays holding back production on the larger iMac models.

As part of an extensive look at HP and whether CEO Meg Whitman will be able to turn the legendary computer company around, Bloomberg Businessweek shares an anecdote revealing how Steve Jobs reached out to ousted HP CEO Mark Hurd in 2010 both to provide support and to offer assistance with repairing Hurd's relationship with HP in an unsuccessful effort to prevent the company from entering a tailspin.

Hurd's ouster at HP has been compared to Steve Jobs' departure from Apple in 1985, although Hurd was forced out over claims of sexual harassment and improper expense reports.

Three days after he’d resigned as CEO under pressure from the company’s board of directors, Hurd received an e-mail from Steve Jobs. The Apple founder wanted to know if Hurd needed someone to talk to. [...]

Hurd met Jobs at his home in Palo Alto, according to people who know both men but did not wish to be identified, compromising a personal confidence. The pair spent more than two hours together, Jobs taking Hurd on his customary walk around the tree-lined neighborhood. At numerous points during their conversation, Jobs pleaded with Hurd to do whatever it took to set things right with the board so that Hurd could return. Jobs even offered to write a letter to HP’s directors and to call them up one by one.

Jobs argued that a strong HP was vital to a healthy Silicon Valley, and Jobs was worried that the company would falter following the departure of Hurd. Jobs was unsuccessful in his efforts, however, and although he would only live for another year, he did witness the fall of HP under outsider Léo Apotheker.

Jobs had quietly served as a mentor to a number of other tech industry figures, such as Google founders Sergey Brin and Larry Page and Salesforce founder Marc Benioff. Jobs also served as mentor to Facebook founder Mark Zuckerberg, offering advice on a broad array of topics.

Seeking to enhance its profile among music buyers, Amazon today announced the launch of AutoRip, a new service that offers customers who purchase physical CDs through Amazon free digital copies of their purchases through Amazon Cloud Player. The service is also retroactive, meaning that customers who bought any of the thousands of eligible CDs through Amazon since 1998 will automatically find digital versions of their past purchases in Cloud Player.

When customers purchase AutoRip CDs, the MP3 versions are automatically added to their Cloud Player libraries, where they are available, free of charge, for immediate playback or download – no more waiting for the CD to arrive. Additionally, customers who have purchased AutoRip CDs at any time since Amazon first opened its Music Store in 1998 will find MP3 versions of those albums in their Cloud Player libraries – also automatically and for free. More than 50,000 albums, including titles from every major record label, are available for AutoRip, and more titles are added all the time – customers can just look for the AutoRip logo.

AutoRip tracks are encoded as 256 Kbps MP3 files and are playable on a wide variety of devices including the iPhone and iPod touch, and can also be accessed through any web browser. AutoRip tracks do not count toward users' storage limits for the Cloud Player service.


Amazon has been working for years to eat into Apple's dominant share of the digital music market, offering discounted prices and matching or exceeding Apple's features such as iTunes Match with its own offerings. With the new AutoRip service, Amazon clearly hopes to attract many longtime customers who have purchased physical CDs from the company by offering free digital versions to introduce them to Cloud Player.

As speculated following his arrival in China earlier this week, Apple CEO Tim Cook has met with representatives of China Mobile, the world's largest carrier. Reuters notes that the two sides discussed "cooperation", but no additional information on the status of long-running negotiations over the iPhone have been revealed.

"In the morning, Apple's CEO Tim Cook visited China Mobile's headquarters. China Mobile's Chairman Xi Guohua and Tim Cook discussed matters of cooperation," said Li Jun, a China Mobile spokesman, in an emailed statement. [...]

Talks between Apple and China Mobile have been going on for years and are stuck on revenue sharing terms, analysts said, so it is tough to say if this meeting would break new ground.

Tim Cook meeting with China’s Minister of Industry and Information Technology Miao Wei earlier this week (Source: MIIT)
Cook also sat down with Sina Technology for an exclusive interview [Google translation] in which he touched on a number of topics. Notably, Cook shared that although this was his second visit to China as CEO of Apple, he has visited China numerous times since 1996 and he has observed tremendous changes over that time.

Cook also highlighted Apple's efforts to raise its profile in China, reiterating plans to grow its retail presence from the current 11 stores in Greater China to at least 25 locations. Apple is also working to speed up the approval process for Apple products in China, moves which would allow product launches in China to occur closer to the first waves that generally include the United States and perhaps 5-10 other countries.

As he has in several other settings, Cook skirted discussion of Apple's plans for the television market, noting that he uses and loves the current Apple TV set-top box but that the market does not yet offer similar potential to the smartphone market. As he usually does when confronted with questions about television, Cook shared only that Apple remains very interested in the market and acknowledged that he can not discuss any future plans for the company.