MediaFile

Tech wrap: Fake Apple Store defiant

Customers at an apparent Apple Store in the Chinese city of Kunming berated staff and demanded refunds after the shop was revealed to be an elaborate fake, sparking a media and Internet frenzy. Staff were also angry at the unwanted attention after more than 1,000 media outlets picked up the story and pictures of the store from the BirdAbroad blog. Apple declined to comment on the fake store or others like it dotted around China.

Apple was in early talks to join the bidding for Hulu, the online video site that Walt Disney Co, News Corp and its other owners have put up for sale, Bloomberg cited two unidentified sources as saying.

Verizon Wireless signed up 1.3 million fewer iPhone customers than AT&T and Verizon Wireless customers spent less per month than expected in the second quarter, disappointing Wall Street. While Verizon Wireless added three times more net subscribers in the quarter than AT&T, it only activated 2.3 million Apple iPhones compared with 3.6 million activations at AT&T.

Facebook won a dismissal of a second lawsuit by the Olympic rowing twins Cameron and Tyler Winklevoss, who have sought to increase their $65 million settlement with the social media company and its founder Mark Zuckerberg.

RIM said it has bought Swedish video editing company JayCut and hinted the operation will work on features for its PlayBook tablet computer. JayCut joins Stockholm-based design company The Astonishing Tribe, which was bought by the Canadian smartphone and tablet maker in December to improve user interface.

Tech wrap: Google probed

U.S. antitrust regulators started a formal investigation into whether Google abuses its market power by favoring its own services over those of rivals in online searches and through other practices. The company has been accused of anticompetitive practices by other companies doing business online. “It’s still unclear exactly what the FTC’s concerns are, but we’re clear about where we stand,” Google said on its official blog. “Since the beginning, we have been guided by the idea that if we focus on the user all else will follow.”

“Typically less than one out of every 10 investigations lead to enforcement. This investigation faces daunting odds,” said David Balto, a former FTC policy director.”The complaints presented to the FTC are from disgruntled advertisers, not consumers. That is not a strong foundation to an antitrust case.”

Private equity firms KKR and Silver Lake are in talks to buy Internet domain site GoDaddy.com and a deal could be more than $2 billion, two sources familiar with the matter said.

Tech wrap: FTC seen deepening Google probe

Google will receive the civil equivalent of a subpoena from the U.S. Federal Trade Commission as part of a probe into the Web giant’s Internet search business, the Wall Street Journal reported, citing people familiar with the matter. The FTC plans to send the civil investigative demand with a request for more information, the civil equivalent of a subpoena, within five days, according to the report. U.S. antitrust regulators have been concerned about Google’s dominance of the Web search industry, and the giant Internet company has been under investigation by the European Commission since last November.

Nokia CEO Stephen Elop showed images of his company’s first phone running on the Windows phone OS. Codenamed “Sea Ray”, the phone appeared to be a near copy of Nokia’s N9 smartphone, unveiled earlier in the week.

The chairman of Yahoo voiced support for Chief Executive Carol Bartz, who has become a lightning rod for criticism as the company struggles with stagnant revenue growth and a rift with its Chinese partner. Yahoo’s efforts to mount a turnaround remain a work in progress, said Chairman Roy Bostock at the company’s annual shareholder meeting. But he said he was confident that the company was headed in the right direction and that Bartz had put Yahoo on a “clear path forward to accelerated revenue growth.”

Tech wrap: iPhone 5 home for Christmas, maybe

An Apple staff demonstrates a new Verizon iPhone 4 at Verizon's iPhone 4 launch event in New York January 11, 2011. REUTERS/Brendan McDermidApple’s iPhone 5 isn’t expected to hit the market until Christmas or early next year, according to Business Insider’s Jay Yarow. Avian Securities said in a note, based on conversations with a “key component supplier” to Apple, that the the iPhone 5 should go into production in September and that Apple could also be developing a lower price/lower spec iPhone model, Yarrow writes.

The $214 billion cellphone industry is bracing for a hit to its supply of components as top phone makers get set to report quarterly earnings next week. “We believe the shortages will start to bite in the third quarter, when we’ll get a clearer picture of who is most affected,” said Ben Wood, head of research at CCS Insight.

On average analysts expect global cellphone sales volumes to have grown 10.8 percent in January-March, according to 18 analysts in a Reuters poll. The phone market has recovered from a slump in 2009, but growth is expected to have peaked in the first half of 2010, with a slowdown to 9 percent forecast for 2011, the Reuters poll showed.