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     Jun 27, 2009
<IT WORLD>
The Apple of your eye
By Martin J Young

HUA HIN, Thailand - The hype this week in the world of technology and communications has been the new iPhone 3GS and its rapid consumption by a public that loves phones that do more than just make and receive calls. According to Apple, over 1 million units were sold within the first three days of its launch, a sales figure which matches that of its predecessor last year, the iPhone 3G.

A survey of several hundred Apple stores over the weekend indicated that 56% of those purchasing the new iPhone were upgrading from their old one while 12% of first-time buyers were switching from Blackberry devices, a figure that has doubled from 6% last year. Market research firm ISuppli predicts that by the 

 
end of the year, Apple will have secured 10% of the global smart-phone market, a figure up from 8.4% last year.

More and more consumers are seeking the extra functionality of a smart phone and the industry is growing despite current economic conditions. The ability to carry out tasks normally reserved for computers is making the difference, with a smart phone you can browse the web, share photos, video and multimedia, check your e-mail, keep up to date on social networking platforms, play games and navigate your way around a city.

You can also access a wide array of additional applications at the online app-stores. One popular iPhone application that has caused a frenzy this week, and resultant server crashes, is titled "The Hottest Girls".

Apple's are not the only fruit though and with handset and software offerings from Google, Microsoft, LG, Samsung and Research In Motion all competing for your consumer dollar there has never been a better time to get smart with a new phone.

As predicted (see China adds brick to censors' firewall Asia Times Online, June 13, 2009), all did not go sweetly with Apple's iPhone 3GS release as its exclusive carrier in the US, AT&T, dropped the ball, leaving a sour taste in the mouths of consumers wanting to activate their new digital buddy. In a repeat of last year's problem, some customers had to wait up to 48 hours to get their devices up and running due to server traffic bottlenecks. Apple has since apologized via e-mail and offered $30 iTunes credit, but AT&T did not offer any apology or discount to their services. What they did do was charge iPhone 3G owners an additional $200 to upgrade to the 3GS, effectively doubling the price of the unit.

Figures released by ISuppli this week indicate that the materials and manufacturing costs of the iPhone 3GS are just below $180. The unit is cleverly marketed with a $199 price tag, however, once carrier contracts and charges are factored in, consumers are looking at close to $600 for a new iPhone. Apple is laughing all the way to the bank.

Even with locked-in contracts, flakey service providers and additional charges, the iPhone continues to be a success, which does give testament to Apple's marketing prowess - and to the product itself.

The man responsible for a lot of that will be back in the limelight again soon, to the joy of Apple aficionados across the globe. Apple co-founder and chief executive Steve Jobs is expected to be back at his desk by the end of this month following six months medical leave and a liver transplant. His comments on the weekend smart-phone rush were simple: "iPhone momentum is stronger than ever."

Security
Microsoft released a limited beta version of its new free security suite, code named Morro, to four countries this week. This foray into antivirus and security software is not likely to please those companies that make their profits from such enterprises, but then Microsoft should be quite efficient at tracking security threats to its own code.

Microsoft Security Essentials replaces the Windows Live OneCare subscription service which will be scrapped in favor of the new, no-cost, lighter application. It runs on Windows XP, Vista and Windows 7 and will perform a Windows Genuine Advantage check before installing so those with pirate versions of the operating system are out of luck.

The software contains all of the basic features that are associated with similar free virus scanners, such as AVG and Avast; they include customizable scan options, automatic definition file updates, a scheduler, a real-time defense shield, and rootkit protection. The updates are relatively quick to download, however, a deep scan could take time. The layout is clean and uncluttered and operation of the software is pretty straightforward.

One main advantage is its small memory footprint, especially compared to the bloated Norton and McAfee security suites that can often bring a machine to its knees in terms of performance. For those interested in giving it a try, it can be downloaded here after registration, though it is not recommended to ditch your existing virus protection just yet.

Entertainment
In a verdict that verged on absurdity, a 32-year-old mother of four has been ordered to pay US$1.92 million to the recording industry for downloading 24 songs from a file-sharing website. The Recording Industry Association of America (RIAA) originally sued Minnesota mom Jammie Thomas-Rasset in 2007, when the jury awarded just over $9,000 per track in damages, a mistrial was declared and the saga continued.

This latest verdict saw the fine increase almost tenfold to a whopping $80,000 per downloaded song as the RIAA pinned its hopes on frightening file-sharers everywhere. Over 35,000 similar cases have never made it to the courtroom as the RIAA demanded people hand over cash instead.

The argument is that the artists should get paid, which nobody denies. However, the likelihood of a single dollar of this grossly excessive punitive damages award actually reaching an artist is about as likely as the mother of four being able to pay it.

Martin J Young is an Asia Times Online correspondent based in Thailand.

(Copyright 2009 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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