Two different reports on Apple this morning left us undecided how to view the Cupertino, California maker of iPhones, iPods and MacBooks run by Steve Jobs (left).

In the first report Apple blew away its PC industry peers in the annual American Customer Satisfaction Index for the fifth straight year. CNET News believes it had much to do with the fact Apple was the only company in its category that didn’t release a Windows Vista PC, which is not to say Apple’s products done speak for themselves.

The ASCI, is prepared by the University of Michigan, and measures a consumer’s overall satisfaction with a company but customers might not have been so satisfied in Japan after their iPod Nanos caught fire according to the second report.

Japan’s trade ministry said three fires had been caused by overheating Apple iPod Nanos, which it said could be due to a battery defect.

Based on both these reports the public could be left feeling that buying an Apple product could set your house on fire but at least the company will answer the customer service phone on the first ring.

But perhaps all will be forgiven if Apple’s iPhone software update quietly released on Monday night actually fixes the reported issues with iPhone 3G’s Infineon chip.

 Keep an eye on:

*Barnes & Noble is cutting Obama book order after exclusive Amazon deal (WSJ)

* Is Verizon making a smart bet or big mistake with its investment in FiOS (NY Times)

* Coca Cola is hoping its marketing blitz in Beijing will pay off big (WSJ)

Now this should be one good duel.

The New York Times is reporting that T-Mobile will be the first carrier to offer a mobile phone powered by Google’s Android software. And it will go on sale… soon!

Talk about anticipation. This is right up there with Apple’s introduction of the new iPhone, which, of course, is only appropriate since the two high-end phones will directly compete with one another in an Olympic-worthy battle. 

From the New York Times:

The phone will be made by HTC, one of the largest makers of mobile phones in the world, and is expected to go on sale in the United States before Christmas, perhaps as early as October.

The high-end phone is expected to match many of the capabilities of Apple’s iPhone and  other so-called smartphones that run software from Palm, Research in Motion, Microsoft and Nokia to access the Internet and perform computerlike functions.

The report says that the phone will have a touch screen that slides out to offer a five-row keyboard. It also says that one person who has seen the HTC phone confirms that it matched the one in a recent video on YouTube.

And here’s an early review from Silicon Alley Insider:

Someone who’s actually seen the gadget — similar, if not identical to the one in the photo — tells us that both the hardware (from handset-maker HTC) and Google’s Android software suffer from a similar problem: They’re technically powerful but not as elegant as Apple’s iPhone and OS X.

Specifically, the phone — apparently a hot item to show off in Google’s cafeterias these days — is big and bulky, and not as sleek as the iPhone. And Android, while extremely powerful, has a less-elegant, less-user-friendly interface than the iPhone (AAPL)

Does this mean it won’t sell well? Of course not. There’s a lot more variables, like device and contract pricing, software and services, etc. that will help determine its commercial success.

Keep an eye on:

• Gannett Co Inc plans to eliminate 1,000 positions from its local newspapers around the U.S. because of declining advertising and circulation revenue (Reuters)
• After the Olympic Games, the naming rights to China’s “Bird’s Nest” National Stadium go up for sale (WSJ.com)
• The release date for the sixth Harry Potter movie, “Harry Potter and the Half-Blood Prince,” was pushed back July 2009 from its original slot in November 2008 (Reuters) 
• U.S. video game sales rose 28 percent in July from a year earlier, boosted by continued strong demand for Nintendo’s Wii console (Reuters)

(Photo: Reuters)

It’s been available for a few months for unlocked iPhones, but Simplify Media’s iPhone application has finally hit Apple’s App Store. Simplify Media’s software, which can also be used on the iPod Touch, will let users stream entire iTunes libraries wirelessly.

Start by downloading the desktop version of Simplify Media’s software for the PC, Mac or Linux and create a screen name. Then find and download Simplify Media’s iPhone application from iTunes or directly from the iPhone or iPod Touch.

The software will let you stream your entire iTunes music catalog and those that belong to up to 30 of your friends who also have the application running on their computers.

Bloggers reported that an earlier version of the software for the iPhone was buggy. We haven’t played around with the latest version yet. The iPhone software is free for the first 100,000 downloaders, Gizmodo says. (Gizmodo)

We’re not entirely sure if the current round of leaks will lift Sirius XM out of its $1.40 per share doldrums, but screenshots of a new iPhone application in development that will let users stream Sirius XM radio stations could put a new shine on the company.

The shots, leaked to Orbitcast, show a login screen that would appear to imply that the service would likely only be available to existing Sirius or XM subscribers or subscribers to the mobile service. We’ve seen various mobile applications that do just that over the years for Windows Mobile phones. But this is the first to offer a common platform for both services — and months ahead of the company’s own timeline for an interoperable receiver.

Citigroup’s Tony Wible thinks the link to Apple “highlight that SIRI’s value lies in its content and not its hardware or infrastructure.” And such applications could help it gain share in the audio entertainment market. “SIRI bears argue that AAPL’s products will take share from SIRI, but we disagree as both MP3 players and satellite radio have unique advantages that leads us to believe both will co-exist. New satellite radio plans create a greater opportunity for synergies between the two,” Wible writes.

We think it could potentially create an ancillary income stream and soften its reliance on automotive contracts at a time when U.S. car sales limp along. Perhaps more importantly, such applications makes Apple, and its ubiquitous devices, a partner rather than a direct rival.

The application, called StarPlayr, developed by GeeksToolBox, could nudge Sirius XM away from Apple’s line of fire.

(Photo: Orbitcast.com)

Anybody out there in TV land riding an Olympic buzz (NBC’s ratings have been scorching) will be brought back down to earth by these numbers from SNL Kagan.

Cable TV ad revenue is forecast to grow at just 4.7 percent in 2009, the firm says. That compares to growth of about up 10 percent for 2008, when cable has been one of the few bright spots for media.  Or as paidContent sums it up, ”This year appears bad enough for media revenues, but for cable TV, 2009 is nothing to look forward to.”

The SNL Kagan numbers back up concerns that were voiced in an article by Reuters’ Kenneth Li after Viacom’s quarterly earnings report last month.

Although the portfolios of each conglomerate varies, making sweeping generalizations difficult, what unites them is a fear that a dramatic halt in newspaper and local advertising could seep into national advertising, namely cable and broadcast networks.

It is all the more troubling because cable networks are seen riding a high as their shows vie for award nominations as aggressively as they court broadcast viewers.

Here’s what the Wall Street Journal says about the SNL Kagan report:

In recent weeks, several cable-network groups have reported double-digit ad-revenue growth in the first half of 2008, bucking the weakness in the rest of the ad market. In part, TV advertisers have been saving money by shifting dollars from broadcast to cable networks, which cost less. “But that can’t go on forever,” says Derek Baine, a senior analyst at SNL Kagan. “Cable networks are already seeing demand slow, and that trend will likely continue and get worse as broadcast networks roll out their fall season.” 

Well, there’s always booming Internet advertising.  

Or not. Bloomberg reports on another study that says Internet advertising spending in the US will be lower than expected this year and next.

EMarketer plans to cut its forecast for 23 percent growth in 2008 by “a few percentage points,” said analyst David Hallerman. The New York-based research firm had predicted almost $26 billion in ad sales this year. Hallerman said his estimate for 16 percent growth in 2009 is “also probably too high.”

Keep an eye on:

• The decision to have a pretty face lip-synching during the Beijing Olympics opening ceremony instead of the actual singer was taken after consulting with broadcasters (Reuters)
• Former HBO Chief Executive Chris Albrecht has left talent agency IMG (Reuters)
• Best Buy will be the first national retailer to sell Appe’s iPhone in the United States in a partnership that could help drive sales of a device expected to be one of the hottest gadgets this holiday season (Reuters)

When Apple’s 3G iPhone went on sale in the U.S. on Friday, the company had in place what it thought was an easy and painless process that would just work in getting customers up and running quickly. Apple said employees could complete the entire sign-up wirelessly, and in test runs figured it would take about 15 minutes per customer.

Turned out that wasn’t exactly the case. By 11 a.m. California time it was clear things weren’t going as planned. Reports on the Web abounded that existing iPhone users and buyers of new ones couldn’t activate the phone once they downloaded the new software.

Some workers in Apple’s flagship Manhattan store told customers the problem was with wireless partner AT&T. But AT&T blamed iTunes. Apple has so far gone radio silent, though by late afternoon it looked like things were improving.

Some fans didn’t seem to mind that the shiny new iPhone they just bought would work as little else than an elegant paperweight until it could be activated.

Danny Fukuba, 17, a recent graduate of Palo Alto High School, was first in line at his local Apple store. He bought the first iPhone last year, and has been camping out since Wednesday night for the second.

“I couldn’t sleep at all for the past couple of nights. I am going to crash as soon as I get my phone,” he said. So why do it? “It’s fun. It’s exciting. This is the first time I’ve actually done anything like this.”

Second kid in line was Eric Vicente, 16, Danny’s friend who will get his old iPhone. “Being first is really cool,” he said. “Because I can’t afford one, I’m getting the hand me down.”

(Top photo: Apple wireless point-of-sale device. Reuters/Eric Auchard
Second photo: People wait in line outside an Apple store in New York. Reuters/Lucas Jackson)

We’re wondering how many iPhones Apple and its telecom partners actually stocked in the 21 countries where it will be sold first. Are some fans who camped out for the launch waiting in vain?

We’ll soon find out. But this is what we can gather from the UK, expected to be one of the biggest selling markets. Actually it’s a bit worrisome, if, say, you live in London and really, really want an iPhone on Friday.

Apple’s only UK carrier partner, O2, says it will have a very limited supply of the phone – like a few dozen phones per store. O2 has already sold out online.

What’s more, according to telegraph.co.uk, only about 50,000 phones have been shipped to the UK (it’s not clear how they came by the number). But to put this in perspective, O2 said it was getting 13,000 orders a second at a peak time on Monday.

 You don’t have to be a math wizard to see that supply wouldn’t keep up with demand for very long under that scenario. 

Apple watchers were slow to bet how many devices it has ready. Mark McKechnie, an American Technology Research analyst who covers phone rivals Nokia and Motorola, but not Apple, looked to phone industry trends.

“For an initial phone launch five millon would be extreme for day one. One million would be more in line with a normal handset launch,” he said.

Okay, let’s say one million phones. That would mean a stock of over 47,000 devices on average for each of the launch countres.

It sounds like a lot of phones until you consider this: Apple sold 270,000 of the first and more expensive iPhone in the first few days after its launch last year ONLY in the United States and ONLY with AT&T Inc.

But even if Apple runs out in the first weekend it may not be the end of the world. Only a longer term supply void would cause worries that the company was having production problems.

“If you see any period of time where there is an outage of supply for more than a few days anywhere that would be concerning,” said Pacific Crest’s Andy Hargreaves.

((Photo: Reuters - iPhone fans wait outside Telia store in Stockholm)) 

(Here’s an updated chronology. This first posted June 9)  

2007

January 9 - Apple Inc CEO Steve Jobs unveils iPhone in the tech industry’s most anticipated new product introduction of the decade.

June 29 - Apple and U.S. carrier partner AT&T Inc start selling iPhone as technology enthusiasts form long lines outside Apple stores.

July 25 - After big build-up, first weekend sales figures reports disappoint investors. Apple and AT&T sold 270,000 iPhones in first 30 hours; but customers only activate 146,000 of the devices due to initial AT&T service problems.

Sept 5 - Apple cuts price on iPhone with eight gigabytes of storage to $399 from $599. Discontinues sales of four-gigabyte version. Also introduces iPod Touch, an iPhone without the phone, with Wi-Fi connections.

Sept 7 - Apple offers $100 rebate to appease customers angered over iPhone price cut.

Sept 10 - One millionth iPhone sold 74 days after launch.

Sept 24 - Apple warns users against unlocking iPhones to work with network carriers other than Apple’s exclusive U.S. partner, AT&T.

Nov 9 - Apple introduces iPhone in Europe through exclusive deals in Britain with 02, in Germany with T-Mobile, and in France with Orange.

Dec 3 - Apple sued for patent infringement related to iPhone’s visual voicemail feature by Klausner Technologies Inc.

Dec 31 - Apple sold 3.7 million iPhones in its first six months on sale.

2008

Feb 5 - Apple introduces 16-gigabyte iPhone for $499.

March 6 - Apple says its plans to enable corporate e-mail on iPhones, pitting it against business e-mail market leader Research in Motion and its Blackberry line of devices.  Apple offers tools for independent developers to build iPhone software.

March 31 - Apple has sold 5.4 million iPhone units to date. Apple ranks as world’s third largest maker of smartphones, with 5.3 percent versus mobile phone giant Nokia’s 45.2 percent and Blackberry-maker Research in Motion’s 13.4 percent, market researcher Gartner Inc says.

April 23 - Apple CFO reaffirms the company’s original mid-2007 goal of selling 10 million iPhone units by the end of 2008. 

April/May - Apple stores run out of iPhones. Apple announces plans with carriers in South Asia to sell iPhones in Australia, India, the Philippines and Singapore.

June 9 - Apple unveils 3G iPhone, with faster Web links than its predecessor and the ability to support third-party applications such as games and email. The eight-gigabyte 3G iPhone is priced at $199, while the 16-gigabyte phone is priced at $299. 

July 11 - iPhone 3G goes on sale in 22 countries. Fans around Asia queue for two days before the phone’s launch. Websites are swamped with early orders. 

Reuters iPhone 3G coverage
Sources: (Reuters, Apple Inc, SeekingAlpha.com, Gartner Inc)
(Photos: Reuters, Apple Inc, Scoble: Brian Solis/Flickr.com)

The new iPhone is expected to attract hordes of buyers when it goes on sale on Friday in more than 20 countries, helping Apple Inc handily beat its target to sell 10 million of them by the end of 2008. The launch began in New Zealand at 1201 GMT on Thursday. Use the map below to follow Reuters reporters and photographers around the world as the new iPhone goes on sale.

View Larger Map

Here we go…

Two days before the iPhone’s launch, fans around Asia are queuing up to buy Apple’s latest offering. They don’t seem to care that it’s raining or freezing cold or if lining up early means missing work or school.

The July 11 launch will be the first chance, after all,  for Asian consumers to own an iPhone.

“I’ve told my professor I was going to go buy an iPhone, and he gave me permission,” said Hiroyuki Sano, a 24-year-old graduate student who early on Tuesday arrived in rainy Tokyo from Nagoya to be first in line. Sano, speaking to Reuters, and incidentally wearing a T-shirt with an Apple logo, described his professor as an equally big Apple fan. “He sent me off cheerfully.”

The United States has already been through this, when the iPhone first went on sale a year ago. As the New York Times recalls, “TV news coverage was relentless. Hard-core fans camped out to be the first in line. Bloggers referred to Apple’s new product as the ‘Jesus phone’.”

The paper adds, “This time, though, when the iPhone 3G goes on sale in AT&T and Apple stores, iPhone Mania will be considerably more muted. That’s partly because the mystery is gone, partly because the AT&T service costs more and partly because there aren’t many new features in what Apple is calling the iPhone 3G. ”

But let’s be clear: There’s still a boatload of interest in this phone and plenty of people will be talking about it this week, offering their two cents on what they like and dislike about the iPhone.

One big name, the Wall Street Journal’s Walt Mossberg, is already weighing in, with a mixed review, knocking the battery life but applauding the phone’s introduction of third party software. 

“I’ve been testing the iPhone 3G for a couple of weeks, and have found that it mostly keeps its promises. In particular, I found that doing email and surfing the Internet typically was between three and five times as fast using AT&T’s 3G network as it was with the older AT&T network to which the first iPhone was limited.”

“Bottom line: If you’ve been waiting to buy an iPhone until it dropped in price, or ran on faster cell networks, you might want to take the plunge, if you can live with the higher service costs and the weaker battery life. The same goes for those with existing iPhones who love the device but crave faster cellular data speeds. But if you already own an iPhone, and can usually use Wi-Fi for data, you probably should hold off and get the free software upgrade before deciding whether it’s worth getting the new hardware.”

But is it worth a two-day wait in line, in the rain, wearing a silly T-shirt?

Keep an eye on: 

• Carl Icahn would have more support in his proxy battle against Yahoo if he pledged not to sell the company for less than $33 a share, said Legg Mason portfolio manager Bill Miller (Reuters) 
• WPP Group, the world’s second-largest advertising company, made a hostile 1.08 billion pound ($2.13 billion) bid for Britain’s Taylor Nelson Sofres, challenging its agreed merger with GfK Holdings AG (Reuters)
• A blind trust run by New York City Mayor Michael Bloomberg is willing to pay between $4.5 billion and $5 billion to buy Merrill Lynch & Co’s 20 percent stake in financial news and data provider Bloomberg LP (NY Post)
• The smaller of Hollywood’s two performers unions ratified a new prime-time TV contract on Tuesday, undermining a last-ditch bid by the larger, more militant Screen Actors Guild to secure a richer deal (Reuters)
• NBC Universal Chief Executive Jeff Zucker is looking to spin off or sell some of the company’s assets when he attends a media conference (NY Post)

(Photo: Reuters)

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