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AT&T has again expanded access to the FaceTime Over Cellular feature to customers on all tiered data plans with a compatible FaceTime device. Previously, only users with an LTE device -- the iPad 3 and 4, as well as the iPhone 5 and iPad mini -- could use FaceTime over cellular. The only users who still can't use the feature are users with a grandfathered unlimited data plan.

When FaceTime over Cellular launched in September 2012, we explained that we wanted to roll it out gradually to ensure the service had minimal impact on the mobile experience for all of our customers.

As a result of ongoing testing, we’re announcing AT&T will enable FaceTime over Cellular at no extra charge for customers with any tiered data plan using a compatible iOS device.

This means iPhone 4S customers with tiered plans will be able to make FaceTime calls over the AT&T cellular network. AT&T previously made FaceTime over Cellular available to customers with a Mobile Share plan and those with an LTE device on tiered plans.

AT&T says the update should be automatically applied over the next few months, and eligible users won't need to do anything special to begin using FaceTime over cellular.

The upshot is that any AT&T customer with a supported device -- the iPhone 4S and newer, the third generation iPad and newer, and the iPad mini -- will soon be able to use FaceTime over cellular.

Earlier this month, a court threw out Apple's false advertising claim against Amazon in the dispute over the "App Store" trademark, leaving unaddressed the question of trademark infringement. The two companies have been battling over the issue for nearly two years, with Apple claiming that Amazon's use of the "Appstore" name to describe its marketplace for Android apps infringes upon Apple's App Store name and causes confusion with consumers.


Bloomberg now reports that the two sides have been order to enter settlement talks over the alleged infringement in an attempt to resolve the dispute before it heads to trial later this year.

U.S. Magistrate Judge Elizabeth Laporte in San Francisco directed the companies to confer on March 21 and to bring their lead attorneys and people who have full authority to negotiate and settle the case, according to a court filing today. A trial is scheduled for August.

Apple is seeking a court order to block Amazon from using the term Appstore in its service to sell software for devices running Google Inc.’s Android operating system. Apple alleges the online retailer infringes its trademark and violates unfair competition laws.

Amazon has argued that the term "app store" is a generic one and that Apple should not have been preliminarily awarded a trademark on the name back in 2010. Apple originally filed for the trademark in 2008, but once the U.S. Patent & Trademark Office tentatively approved the application and published it for opposition in early 2010, Microsoft filed an objection, also arguing that the term was generic.

The trademark approval has remained in limbo, as Microsoft and Apple have agreed to postpone further debate in the process until the case between Apple and Amazon is resolved.

While questions remain about claims from earlier this week that Apple has slashed iPhone 5 component orders, CNET is now reporting on market research firm DisplaySearch senior vice president Paul Semenza's comments on how the iPhone 5's initial shipment ramp was simply too large to maintain.

"It was a very quick ramp up. The Q4 [estimate] was about 61 million [for the iPhone 5]...that may be dialed back a bit, but anything near that number is still huge," he said, referring to an estimate of display shipments for the iPhone 5.

"That would support the theory that the ramp was too much to sustain."

CNET mentions that the first quarter of sales for the iPhone 4S registered far below that for the iPhone 5, providing little reason for such a strong decline in iPhone 5 interest. Yesterday, Semenza told The New York Times that Apple had cut its display order from 19 million to 11-to-14 million for January, noting that demand from Apple had been "corrected significantly." But he also mentioned to CNET that he'd heard of changes to orders before the new year.

Theories abound as to the just how much Apple has cut component orders and the reasons for those cuts, but many believe that improving yields and aggressive ramping during the holiday quarter may simply have left Apple with an oversupply of parts heading into the new year. Combining that excess inventory with a natural slowdown following the strong launch quarter for the device could lead to substantial reductions in part production. Still, it seems unlikely that Apple would have miscalculated component demand for the current quarter by the nearly 50% number originally cited by Nikkei and The Wall Street Journal.

Recently, it's been reported that Apple is prepping iPhone 5S production for March ahead of a release in June or July, a rapid update cycle that could also be forcing adjustments in Apple's component orders.

KGI Securities analyst Ming-Chi Kuo, who has a very good track record in predicting Apple's product plans, has issued a new research report outlining his expectations for Apple's 2013 product launches. Kuo believes that Apple will focus its launches on the third quarter of this year, with a number of updates throughout the company's various product families.


- iPhone: Kuo expects that Apple will introduce both an iPhone 5S and a revamped iPhone 5 around June or July of this year, with the iPhone 5S appearing very similar to the current iPhone 5 but carrying a number of upgrades including an A7 system-on-a-chip for better performance, a fingerprint sensor, and camera improvements such as an f2.0 aperture and a smart LED flash. He also believes that lower-cost iPhone will in many ways simply be an iPhone 5 repackaged into a slightly thicker (8.2 mm vs. the current 7.6 mm) plastic enclosure available in six colors.

- iPad and iPad mini: Kuo forecasts that will update both lines during the third quarter of the year, with the iPad mini gaining a Retina display as the most notable change. He also predicts that the full-size iPad will become considerably slimmer and lighter and adopt the thinner side bezels seen on the iPad mini.

- MacBook Pro: In line with his predictions from last year, Kuo believes that Apple will do away with the non-Retina MacBook Pro line in 2013, moving to an all-Retina lineup at cheaper price points than the current Retina models. Kuo also believes that Apple will tweak the design of these thinner Retina MacBook Pros, despite having just introduced the current form factor last year.

- MacBook Air: Retina displays remain a challenge for the MacBook Air given their relative thickness, and Kuo predicts that they will not be appearing in the 2013 MacBook Air lineup. Kuo believes that a move to Intel's forthcoming Haswell platform will be the main upgrade for the machines, with the update coming perhaps as soon as late in the second quarter.

- Desktops: Kuo notes that the iMac redesign has been well-received, but it appears that he does not see Retina displays coming to the lineup in 2013. He simply predicts a shift to the Haswell platform for the iMac and Mac mini in the fourth quarter of the year. Kuo's report does not address a new Mac Pro, even though Apple CEO Tim Cook has personally shared that a significant update for the line was due in 2013.

- iPod touch: Apple will reportedly discontinue the fourth-generation iPod touch, which is currently being sold alongside the new fifth-generation models. In order to fill the gap, Kuo believes that Apple will introduce a scaled-back fifth-generation model with 8 GB of storage and no rear camera at $199.

- Apple TV: Kuo predicts a minor update to the existing Apple TV product as soon as late this quarter, but he offers no details on what the update would entail. He also notes that Apple's more substantial television effort is unlikely to appear in 2013, with content issues and a lack of experience in the television set industry pushing things back until 2014.

Apple vice president of retail Jerry McDougal, a key player in Apple's retail development over the past 12 years, has departed the company to spend more time with his family, reports IFOAppleStore.

McDougal was Ron Johnson's right hand man when he was still with the company and was considered a possible replacement for Johnson when he moved on to head JC Penney.

A key player in the birth of Apple’s retail chain and a potential candidate to lead the retail stores has left the company. Jerry McDougal, Vice-President of Retail, said goodbye to his colleagues last Friday, sources say. His departure was explained as not work-related, but rather so he could spend more time with his family. Apple notoriously requires an enormous commitment of time from its employees, especially at the headquarters level. That commitment increased even more for retail executives after last year’s departure of Ron Johnson.

McDougal was also considered as a possible replacement for John Browett after he was fired earlier this year.

IFOAppleStore notes that McDougal was responsible for Apple's retail marketing, product merchandising, store operations, loss prevention and customer loyalty programs.

Apple vice president of retail Jerry McDougal, a key player in Apple's retail development over the past 12 years, has departed the company to spend more time with his family, reports IFOAppleStore.

McDougal was Ron Johnson's right hand man when he was still with the company and was considered a possible replacement for Johnson when he moved on to head JC Penney.

A key player in the birth of Apple’s retail chain and a potential candidate to lead the retail stores has left the company. Jerry McDougal, Vice-President of Retail, said goodbye to his colleagues last Friday, sources say. His departure was explained as not work-related, but rather so he could spend more time with his family. Apple notoriously requires an enormous commitment of time from its employees, especially at the headquarters level. That commitment increased even more for retail executives after last year’s departure of Ron Johnson.

McDougal was also considered as a possible replacement for John Browett after he was fired earlier this year.

IFOAppleStore notes that McDougal was responsible for Apple's retail marketing, product merchandising, store operations, loss prevention and customer loyalty programs.

Update: McDougal has been replaced by Jim Bean, Apple's VP of Finance, according to a report by AllThingsD. He will retain his VP title:

"Retail has an incredibly strong network of leaders at the store and regional level, and they will continue the excellent work they’ve done over the past decade to revolutionize retailing with unique, innovative services and a focus on the customer that is second to none," Apple spokesman Steve Dowling said. "Jim Bean is moving to Retail to help support our store teams. Jim has been at Apple for 15 years and is a great leader who understands our culture and focus on customer service."

Apple is once again being targeted for its AppleCare policies in Europe, this time by Belgian consumer group Test-Aankoop/Test-Achats.

The organization filed a complaint against Apple yesterday with the Commercial Court of Brussels (via TechCrunch), claiming that the Cupertino-based company has not followed local warranty laws and has withheld information from consumers.

While electronics in the United States typically come with a one year warranty, the same products have a mandated two year warranty in the European Union.

According to the organization, Apple has failed to adequately disclose the details of the law to consumers, instead choosing to push its AppleCare Protection Plan and AppleCare+ extended warranties.

Test-Aankoop/Test-Achats was originally one of 10 European organizations that teamed up to reprimand Apple for its AppleCare practices, but the consumer group decided to move on with an official suit because Apple has "remained deaf" to demands.

Apple faced a similar lawsuit in Italy, which was resolved just last month. Apple was forced to pay more than $1.4 million in fines, in addition to modifying its website and ceasing the sale of AppleCare in Italian Apple Stores.

The New York Post reports on Bob Tedeschi, a former columnist for the New York Times' Gadgetwise blog who was sent undercover in 2010 to develop an app. The story was eventually spiked, but Tedeschi kept the project going.

The app he created, Bobo Explores Light, received an Apple Design Award and a number of other accolades and praise. Tedeschi used a pseudonym to avoid any favorable treatment by Apple or anyone else because of his job at the Times, and after the app proved so successful, he was moved from Gadgetwise to a gardening column.

"I was floored by how well it did," Tedeschi told The Post. He said his contact at Apple was "speechless" when he broke the news he was behind “Bobo,” which copped a slew of Apple awards.

"Bobo," created with two executives at Game Collage, has hit No. 1 in 12 countries in both the education and book categories.

Costing $4.99, "Bobo," which launched Sept. 15, 2011, is currently the No. 72 top-grossing iPad app, according to AppData, and is the first children’s educational app to make the App Hall of Fame.

Bobo Explores Light for iPad is available for $4.99 on the App Store. [Direct Link]

Following up on his report from last month, Jeffries analyst Peter Misek has released a new research report indicating that Apple's iPhone 5S is still in line for a launch in June or July of this year, with production beginning to ramp up in March.

Our checks indicate that preliminary builds for the iPhone 5S will start in March for a launch in June/July. As word of the earlier production schedule starts to spread, we believe we could see a slight slowing of demand CQ1 in anticipation of the new product launch and Apple will likely start curtailing channel inventory.

Misek notes that he has been seeing signs of two iPhone 5S prototypes currently in testing, although one could be the cheaper iPhone that has been the subject of a number of rumors in recent weeks. On the topic of that cheaper iPhone, Misek says that the device "looks close to being greenlit or may already have been" and offers some "likely specs" in order to help bring Apple's costs down:

Similar to the iPad mini, we expect a concentrated low-cost iPhone rather than a "cheap" one. Likely specs: polycarbonite case with 4" non-Retina display and no LTE. We believe a new low-cost iPhone would increase Apple's share, decrease [gross margins], but have little impact on [earnings per share].

Misek also directly addresses the iPhone with a 4.8-inch display mentioned in his earlier report, now saying that he is seeing no further signs of the device. He suggests that the form factor is for the iPhone 6 further down the road, but we remain skeptical about the likelihood of Apple making yet another change to the iPhone's resolution even two generations removed from the iPhone 5.

Finally, Misek comments on recent reports that Apple has slashed component orders for the iPhone 5 nearly in half in the first quarter due to "weaker-than-expected demand". Like a number of analysts, Misek casts significant doubt on the reasons for the dire claims, suggesting that lowered component orders are largely driven by an assembly bottleneck that has resulted in oversupply of components and projected ramping down of production leading into the iPhone 5S.

The original reports from Nikkei and The Wall Street Journal for their claims that Apple was planning to build 65 million iPhones this quarter before slashing its orders, an unrealistically high number considering expectations for sales in the range of 50 million units in the holiday quarter that coincided with the device's launch in most markets. The Wall Street Journal quickly removed the specific 65-million figure from its report, but uncertainty about the sourcing and accuracy of the associated claims persists.

BrightWire reports on an article from Chinese web portal Tencent claiming that Apple CEO Tim Cook discussed during his visit to China last week the company's plans to establish a research and development center in Beijing. The report includes several other items of information pointing to Apple's continued efforts to strengthen its presence in the rapidly growing Chinese market.

- At a meeting with Beijing's acting mayor Wang Anshun on January 8, Apple CEO Tim Cook said the company plans to set up an R&D center in Beijing, an unnamed insider source told Tencent Tech today.

- Cook also noted that Apple will move a certain amount of its servers for App Store and iTunes to China in order to improve the downloading speed for users in China.

The report also cites "IT insiders" claiming that Apple is likely to set up its Chinese data center in either Zhangjiakou to the northwest of Beijing or in Inner Mongolia.


Apple's Sanlitun retail store in Beijing
Tim Cook shared some of his thoughts on the Chinese market during his visit to the country, noting that Apple has plans to build more than 25 retail stores in the Greater China region and that it is working hard to speed up the regulatory approval process for its products so that they can launch closer to the first wave of debuts.

Apple has been looking to open research and development centers outside of the United States, seeking to draw upon international expertise for some of its technological advances. The company has already moved forward on a center in Israel, and there had previously been claims that Apple was exploring the possibility of a research center in Russia, although those talks do not appear to have yielded any commitments.