Apple's Eddy Cue- Yep, we caused e-book pricing to rise

Apple's Eddy Cue: Yep, we caused e-book pricing to rise
NEW YORK -- A high-level Apple executive admitted his company's deal with publishers caused some e-book prices to rise, giving weight to the government's accusation that Apple's machinations hurt consumers.Eddy Cue, Apple's senior vice president of Internet software and services, who took the stand Thursday in district court in lower Manhattan, also said Apple considered splitting the market with Amazon in a setup where Apple would control the music market, while Amazon would monopolize books.Cue's testimony marks a pivotal point in the trial, in which the Justice Department is attempting to prove that Apple's deals with the publishers artificially inflated e-book prices. Apple has maintained it has done nothing wrong. Related stories:Steve Jobs initially didn't want an iBookstore, Eddy Cue saysApple hammers Google witness hard in e-book pricing trialFocus, criticism shifts to Amazon in Apple e-book trialIt was Apple's way or the highway, e-book execs sayApple: We wanted a 'level playing field' for publishersApple and the DOJ face off over e-book prices (FAQ) Cue, however, acknowledged that the price of certain digital books, such as New York Times best sellers, increased after Apple opened its iBookstore in April 2010 and remained elevated through 2012. He noted it wasn't a surprise prices rose because all publishers told him they had problems with Amazon's $9.99 pricing. "They had expressed they wanted higher prices from us," he said.Apple's defense, meanwhile, spent much of the afternoon walking Cue through his responses to DOJ questioning. He sought to show that Apple was looking out for customers and pursuing legitimate business agreements, not trying to change the e-book market. And Cue said he believed that while some prices would be higher, consumers ultimately would benefit from the bigger selection of titles."I knew some books would definitely go up, but others are available for the first time there," Cue said. Cue, who typically sports jeans and a button-down shirt, wore a gray suit, white collared shirt, and red tie to court. He rarely raised his voice and kept a neutral expression on his face, but started to get testy during certain lines of questioning, such as whether Apple cared if consumers had to pay higher prices. By contrast, Cue became more lively and engaged during questioning by Apple attorney Orin Synder, talking animatedly about how he negotiates content deals. The Justice Department tried to show that Apple didn't care if consumers had to pay $12.99 or $14.99 for e-books instead of $9.99, but Cue disputed such comments."Our consumers were protected by my price points," he said. "I thought we were going to treat our consumers very, very fairly."A debate has been going on during the trial about whether digital book prices did in fact rise after the iBookstore launched. Apple's attorneys have argued that pricing has fallen, but the U.S. Department of Justice has said prices spiked "dramatically" after Apple's entry into the market. A Justice Department expert witness -- Richard Gilbert, emeritus professor of economics at the University of California at Berkeley -- on Thursday testified that even if overall average pricing fell, it didn't mean customers weren't harmed or that certain segments didn't rise. "Here you have clear evidence some titles went up in price," Gilbert said, noting overall prices haven't been affected by some new publishers and authors entering the market with books priced very low, such as at $2.99. But pricing for best sellers and other titles have risen, he said.Apple's Eddy Cue introducing iTunes Radio earlier this weekJames Martin/CNETThursday marked the end of the second week of the three-week trial in the district court in lower Manhattan. Testimony will resume Monday, and closing arguments are scheduled for June 20. Cue will take the stand again Monday. Cue is the highest-ranking Apple executive to testify during the trial. The Justice Department has portrayed Cue as the "chief ringleader of the conspiracy" to control e-book pricing, and it has said his testimony would show Apple colluded with the publishers to boost digital book prices and hurt rivals such as Amazon. Conversely, Apple's attorneys are counting on Cue to reinforce their defense that Apple's actions simply were standard negotiation tactics. "Nailing him down to certain facts is really critical," said Chris Sagers, a law professor at Cleveland State University who has been following the case but isn't directly involved. "He's obviously not just going to say what the government wants him to say."The Justice Department, which initially sued Apple and a handful of the nation's largest publishers, contends that Apple forced publishers to move to an agency model, in which publishers set the prices, and away from the traditional wholesale business, which typically results in lower prices for the consumer.Apple executive Eddy Cue in February of 2009 suggested Apple pursue a deal with Amazon to split the music and book markets.U.S. Department of JusticeDuring the course of testimony over the past several days, Apple executives and publishers have discussed the process for reaching deals for the iBookstore, and Amazon and Google executives also have talked about their own negotiations with publishers. Apple has attempted to draw parallels between itself and Amazon, showing that the different nuances of their respective deals are par for the course in the industry, and not a conspiracy to inflate prices.Cue, who described negotiations with publishers as difficult, on Thursday said he didn't believe publishers worked together to change pricing and reach deals with Apple. "They argued different points," Cue said. "If they talked together, I assumed it would be easier to get the deals done."He also noted that he "wasn't trying to negotiate" for the entire e-book retail market or trying to resolve publishers' issues with Amazon's pricing. Updated at 2:50 p.m. PT with information from the defense's questioning.


MySpace Music- Why limit it to majors-

MySpace Music: Why limit it to majors?
But there was always a major gap: if we wanted to sell downloads, CDs, or anything else, we had to guide fans to another site or service, such as our own home page with a PayPal account or CDBaby.Today, MySpace announced a deal with three of the four majors (EMI is sitting out for now) to offer DRM-free MP3 downloads, ringtones, and merchandise through the artist pages on MySpace. This is long overdue: the music industry needs to go where their fans already are, and with 30 million people regularly listening to music on the site, it's a mystery why the labels haven't tried to reach these folks before now.But major label acts are a small part of the MySpace experience. The only reason you ask The Police or Death Cab to be your "friend" is to show off your impeccable taste to your real friends, the individuals and small-time artists who you're actually connected with. These are the folks who leave individualized comments on your page and send you instant messages, and their gigs appear right alongside Radiohead's on your home page. MySpace is the ultimate long tail site for musicians, where bar bands and small-town heroes can appear in the same context as the biggest bands in the world. So I'm not sure that MySpace Music will be a game-changer. Fans of big bands already know where to buy merchandise--the band's Web site, or Amazon's CD section, or iTunes, or their local retail store. Sure, big fans who count major-label acts among their "friends" might now stay within MySpace to buy new songs from these bands, and some MySpace users might discover (and buy music from) new acts via friends of friends. But a lot of fans don't know (or care much about) the difference between major and independent artists, and might wonder why only some acts make their wares available for purchase. The inconsistency will be confusing, and drive users back to the traditional music-buying sites (or free file-trading services, which aren't going away).The real game-changer comes when MySpace offers a full e-commerce store--downloads, CD sales, the works--to every artist with a musician's page on the site. That way, users would never have to leave the site to buy any music they heard on the site. The challenge would be building the infrastructure, but once things like billing and provisioning downloads are in place for the majors, it might not be much harder to set up a CDBaby-like system for everybody else.


Beautiful Tengami papercraft game plays like a dream

Beautiful Tengami papercraft game plays like a dream
Sometimes a game comes along that urges you to take your time -- to soak up the gorgeous atmosphere, explore the world, and solve puzzles at a leisurely pace. It's about the journey, not the finish line.The Room is one such game. Year Walk is another. And now we have one more to add to the list: the newly released Tengami from Nyamyam.And yet, Tengami isn't quite like any game we've seen. It's based on the idea of a pop-up book and set in a sort of mythical feudal Japan. You control a young Japanese man -- although the actual details of the plot remain to be unfolded as the story progresses, with very minimal exposition and even fewer directions. It plays out, in fact, a bit like a dream: you unfold the landscape and wander through it, solving puzzles and collecting items to advance to the next stage of the story. And everything works as it would in a pop-up book: tabs that can be pulled allow you to removed obstacles and move items, and standing on glowing portals allows you to turn the page, collapsing the current scene and reopening the next. Nyamyam Each action, and each puzzle, needs to be figured out by you -- first, what the puzzle actually is, and then what you have to do to solve it. A series of four chimes, for instance, needs to be rung in a particular order, but the game gives you no clues as to what that order might be. Meanwhile, there's not a single flaw in the aesthetic execution. Your character, when turned sideways (or facing toward or away from you, since he is viewed from the side), all but disappears -- he is, after all, made of paper. Each environment collapses perfectly; you can easily imagine the scenes crafted out of real paper, and, in fact, they could be.Related storiesThe Room updates with new epilogue chapterYear Walk is spooky, scary beautiful "Tengami's world is built as an authentically folding three-dimensional pop-up book with an all new technology created just for this game," the description reads. "Everything seen in the game could be re-created in real life with just paper, scissors, and glue." The development team even scanned real sheets of paper to create realistic textures for the world. The result is something unique, beautiful and absolutely worth playing. Once again, an indie developer has proven that a game can indeed be a breathtaking work of art. Tengami is available as a universal app for $4.99 from the iTunes App Store. (Source: CNET Australia)


The 404 356- Where Bonnie Cha gives it to us straight about the Palm Pre

The 404 356: Where Bonnie Cha gives it to us straight about the Palm Pre
She also has a few complaints: as expected, the keyboard is pretty tiny and requires a rather long learning curve depending on the size of your fingers. In fact, Bonnie's got pretty small hands and even she had problems typing on it, so be sure to check one out before you buy. Next, the battery life pooped out after only one day of usage, which can be attributed partly to a faulty AIM client, but it's still something to keep in mind.Overall, Bonnie fully recommends the phone to Sprint customers, including Jeff, who's been calling her at home to get insider's secrets since the phone was first announced. In the end, Jeff finally decides to at least go check it out on opening day, Saturday, but with no guarantees that he'll buy. No matter what phone he gets, we'll still have a great time with a live smashing of his old HTC Mogul on next week's show, so make sure to look out for that as well. Leave a comment below, though, and let us know what you think about the Palm Pre. Are you going to buy it? Is it worth the money to upgrade? Do you hate the phrase "iPhone killer" as much as the Bonch? Let's hear it.EPISODE 356Download today's podcast Subscribe in iTunes audio | Suscribe to iTunes (video) |Subscribe in RSS Audio |Subscribe in RSS Video This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?YesNoSorry, you are not old enough to view this content.PlayClear your schedule for the next week and begin the novel that is Bonnie Cha's official Palm Pre review--good stuff!Photo Gallery: Palm Pre screenshotsWatch Bonnie's awesome Palm Pre unboxing videoWill Verizon and AT&T get the Palm Pre?Follow us on Twitter!The 404Jeff BakalarJustin YuWilson Tang


Logitech Squeezebox Boom- The ultimate Wi-Fi radio-

Logitech Squeezebox Boom: The ultimate Wi-Fi radio?
As with other Squeezebox products, though, the Boom can also be accessed through its online control panel--available from any browser. There, you can fine-tune a variety of details, from the menu display and screensaver options to setting alarms (the Boom doubles as a clock radio, allowing you to wake to any Internet radio station or digital playlist you prefer). Likewise, the Squeezebox Boom can interface with the digital music on your PC (with the downloadable SqueezeCenter software) or to the above-mentioned panoply of Internet radio and subscription services (via Logitech's online SqueezeNetwork, which aggregates multiple services into one easy-to-use control panel).Not all's perfect, of course. The high-gloss finish and rubbery controls attract fingerprints and smudges, respectively. The single control wheel takes a bit of getting used to--there's a separate volume rocker to the right, but--like the iPod--the knob can also (sometimes) double as a volume control. And we were kind of bummed that it's AC-only--there's no battery option for truly wireless operation, though it is small enough to easily move from room to room.And there's the DRM bugaboo: while the Squeezebox can access plenty of proprietary services (such as Rhapsody and Sirius), it can't stream copy-protected music purchased from iTunes.(DRM-free "iTunes Plus" downloads work just fine, however, as do those from Amazon, eMusic, Napster, and other sources. The same goes for home-ripped music, even if it's in more obscure formats such as Ogg or FLAC.)Still, for those of us whose online audio choices have moved beyond Apple's walled garden, the Logitech Squeezebox Boom looks to be a strong contender. It will be hitting stores in September for $300.(Compared to the $650 Tivoli Audio Networks, it's a steal!) That's somewhat pricier than most other Wi-Fi radios we've seen, but those who value the strong feature set and geek-friendly customization options will likely find it worthwhile to pay the premium.We'll have a more in-depth review of the Logitech Squeezebox Boom soon. In the meantime, what do you think? Is this a crave-worthy digital audio product, or are you more than happy with your iPod clock radio?


Battery for rumored iPhone 6 signals thinnest Apple phone yet

Battery for rumored iPhone 6 signals thinnest Apple phone yet
A report from Asia reinforces the speculation that a lot of Apple's focus is on thinness for the rumored iPhone 6.A report from Taiwan-based Digitimes on Wednesday said that the battery in the next-generation iPhone has a thickness of only 2 millimeters versus 3 mm for the iPhone 5 series battery."But both feature a similar capacity," the report added.If true, that would indicate an emphasis on thinness over capacity -- boosting capacity can indicate an increase in the size of the battery. The Digitimes report echoes a report in April from Commercial Times, also a Taiwan-based publication, that claimed the larger 5.5-inch iPhone 6 would have 2 mm-thick battery.Related storiesApple reportedly fixes battery issue with 5.5-inch iPhone 6 Overall, Taiwan-based component makers are "facing difficulties" reducing the thickness of components including panels, chassis, and battery packs for upcoming iPhones, Digitimes said. Those difficulties stem from trying to make thinner parts but not achieving satisfactory production yield rates (the ratio of good parts to bad parts). The Digitimes report adds to a growing list of reports that highlight the challenges Apple and its chain of suppliers are facing to create the thinnest iPhone to date.A report earlier this week said that 5.5-inch model could be delayed because of issues with the in-cell touch display panel.That technology has allowed Apple to make its devices thinner. And earlier reports cited issues with a new backlight, which would also contribute to a thinner phone. Digitimes added that 60 million to 70 million new iPhones are expected to be sold by the end of 2014.


Ballmer- Android is too wild, and Apple too highly controlled

Ballmer: Android is too wild, and Apple too highly controlled
In conversation with LinkedIn co-founder and venture capitalist Reid Hoffman at a Churchill Club event, Steve Ballmer gave his assessment on Microsoft's competitors in the mobile space. "The ecosystem of Android is a little wild," he said, noting compatibility and malware issues due to the fragmentation that comes from having multiple variations of Android, on devices from Amazon, Samsung, Google and other hardware makers. Read: Ballmer praises Sinofsky's "amazing contributions," sheds no light on exit"Conversely, Apple's system looks highly controlled and quite high prices," the Microsoft CEO said, citing the $1,000 cost of an iPhone in Russia. "How do you get quality not at a premium price with not quite as controlled an ecosystem.""The best of both worlds is available to us," he maintained.This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?YesNoSorry, you are not old enough to view this content.PlayThe phone operators around the world, who actually pay for most of the phones, really want three vendors, Ballmer explained. "On the high end, they have Apple and Samsung and a sea at the low-end."Wehave a customer set that wants an alternative, and it's a different opportunity strategically...the product has to be great. Windows 8 is the most personal smart phone. When you whip out your phone, you want to see the things that matter to you."However, Ballmer acknowledged that it's still early in the game. "If anyone thinks hardware innovation in pocket devices is ending, they are nuts," he said. For now, Microsoft and Windows 8 are playing catch up. Microsoft's Windows Phone mobile operating system captured just 2.4 percent of the smartphones shipped around worldwide during Q3 of 2012, according to Gartner.Ballmer said he doesn't expect Microsoft's phone operating system to be an instant hit. "There is unmet need from operators and, from a consumer perspective, a lot of room for innovation. The challenge is to get 10 percent of the smartphone market, and then 15 percent, and then 20 percent. We aren't trying to get to 60 percent overnight."


Baidu launches Android phone with eye on Windows Phone, iOS

Baidu launches Android phone with eye on Windows Phone, iOS
The Google of China, Baidu, today announced a new smartphone powered by its own cloud-based platform.Dubbed the Changhong H5018, the smartphone runs on a forked version of Android that's powered by the Baidu Cloud Smart Terminal platform. The device was manufactured by Foxconn and will be released on China Unicom's network, according to the search company.Baidu's Cloud Smart Terminal is the company's push for mobile market share. It allows users to access its many services, including search, applications, and cloud-based services from the device without needing to head onto the Web. According to Baidu, the offering also includes voice- and handwriting-recognition features. Most importantly, Baidu says it will provide all Changhong H5018 owners with 100GB of free storage through its cloud-based Netdrive offering.Related storiesBaidu.com sues U.S. domain registrar over hackingReporters' Roundtable: Google vs. China (podcast)Baidu to bring box computing to Symbian devicesMicrosoft and Alibaba launch Chinese search siteBaidu hacking lawsuit allowed to proceedOn the hardware side, the device features a 3.5-inch touch screen, 3G connectivity, and a 3-megapixel camera.Although the smartphone won't shine among high-powered alternatives, like Apple's iPhone, that doesn't appear to be Baidu's focus. In an interview published today with TechCrunch, Baidu spokesperson Kaiser Kuo says that the company is looking to bring its cloud platform to Apple's iOS and Microsoft's Windows Phone 7."We want Baidu's Cloud Smart Terminal to function as a platform that sits on top of all operating systems, such as Windows Phone and iOS," Kuo said. "We are not yet working on a Windows Phone device but the hope is to make one."It's not immediately clear how Baidu will go about building its platform atop iOS, and it's quite likely Apple might take issue with it if it did so. Without mentioning Apple, Kuo told TechCrunch that Baidu doesn't want to leave any stone unturned with its mobile cloud push, but "some stones are proving to be more recalcitrant than others." Could that proverbial stone be Apple?


Authorized Steve Jobs bio release moved up again

Authorized Steve Jobs bio release moved up again
The release of Simon & Schuster's self-titled biography of Steve Jobs penned by Walter Isaacson has once again been moved up, coming out later this month. The title, which includes two years' worth of interviews with Jobs, family members, and colleagues, is now set to be released October 24. The original date was November 21, which was moved up from the "early 2012" time frame the publisher originally announced.Although there have been other biographies about Apple's iconic co-founder, who died yesterday, Isaacson's has been billed as the first published with Jobs' participation. "Although Jobs cooperated with this book, he asked for no control over what was written nor even the right to read it before it was published," the description reads. "He put nothing off-limits. He encouraged the people he knew to speak honestly. And Jobs speaks candidly, sometimes brutally so, about the people he worked with and competed against." In an essay for Time magazine (subscription only), Isaacson recounts the last time he talked with Jobs. "A few weeks ago, I visited Jobs for the last time in his Palo Alto, Calif., home. He had moved to a downstairs bedroom because he was too weak to go up and down stairs. He was curled up in some pain, but his mind was still sharp and his humor vibrant." When Isaacson asked Jobs why he wanted to do the book, Jobs told him, "I wanted my kids to know me. I wasn't always there for them, and I wanted them to know why and to understand what I did."Within days of being offered as a pre-order, the book, which was originally titled "iSteve: The Book of Jobs," jumped near the top of best-selling book lists on Amazon, reaching No. 1 status in three different categories: Biography & History, Business Professional's Biographies, and Technology.Disclosure: Simon & Schuster is owned by CBS. CNET News is published by CBS Interactive, a unit of CBS.Updated at 1:35 p.m. PT: Added comments from author Walter Isaacson.(via CNN)


Australian university to issue 11,000 iPads next year

Australian university to issue 11,000 iPads next year
Tablets have been eating away at the PC's position as the connected device of choice, and now they're taking their place in the classrooms of an Australian university.The University of Western Sydney said in a statement that it plans to distribute 11,000 iPads next year to every new student and member of the faculty "to support learning and teaching innovations across the curriculum and in informal learning environments.""With digital technology revolutionizing how we connect and interact with the world, university study should be no different," professor Kerri-Lee Krause, the university's pro vice-chancellor, told The Australian.Education was a key market for Apple more than two decades ago, and it returned to its roots earlier this year with the introduction of its iBooks Author software -- free software that lets authors design digital versions of textbooks and other interactive titles for the iPad. It was launched in conjunction with the company's push to get textbook authors to create and distribute digital edition.The iPad initiative is part of a curriculum overhaul at UWS that will stress "flexible study options" and "a blended learning model," The Australian reports. Traditional lectures will be augmented by a more interactive learning approach, Krause said. "Mobile technologies will be a key part of this strategy," she said. "We want to support our academic staff to make the most of iPads and custom-designed apps in class so that, even in the largest lecture theater, students have access to just-for-me, just-in-time interactive learning experiences."While not the first to give Apple's slates to students in an apparently revolutionary shift in lesson presentation, UWS might be the largest single institution to issue an iPad to each incoming student and to each faculty member. Earlier this year, the San Diego Unified School District announced it would purchase 26,000 iPads to be used by the district's more than 130,000 students.