Showing posts with label Apple iPad. Show all posts

Bill Gates says "frustrated" iPad users can't type or create documents

Just when we thought that the 'iPad can't do productive stuff' debate was over, Microsoft co-founder and Chairman Bill Gates, has fired fresh salvos at the world's best selling tablet.

During an interview with CNBC, speaking on the declining PC market, Gates said that people using iPad-like devices were frustrated because "they can't type, create documents, and don't have Office." He said that tablets were becoming more popular and that the line between PCs and tablets was becoming thinner.

He also praised the Surface, Microsoft's own tablet, for integrating the "portability of the tablet with the richness of the PC."

Microsoft launched Windows RT in October 2012, along with the Surface tablet (Review). The software runs on a few tablets from other manufacturers as well. Windows RT is designed to run on phone-style chips, of the kind used in the iPad, rather than PC-style chips, which tend to use more energy and require bigger batteries. Using Windows RT means the tablets can be thinner and lighter, but it also means regular Windows programs won't run on Windows RT. That's caused some confusion and limited the appeal of Windows RT, analysts say.

However, the market response to Microsoft's Windows RT powered tablets has been anything but good. Researchers at IDC said manufacturers shipped 200,000 tablets running Windows RT, the special version of Windows for iPad-style tablets, in the January to March period, down from about 900,000 shipped in the fourth quarter.

It's worth pointing out that Apple still remains the top tablet seller although Android tablets are showing increased presence thanks to low cost devices from Asian sellers. Tablet shipments reached 49.2 million units in the January-to-March period, according to IDC. Apple's iPads accounted for 19.5 million units out of these. Android tablets accounted for 56.5 percent of shipments in the March quarter, compared to 39.6 percent for iPads. Tablets running Microsoft's new Windows and Windows RT platforms accounted for 3.7 percent of total shipments.

Report by : Anupam Saxena

iPad mini with Retina display coming in Q3 this year: Analyst

A Retina display iPad mini see a release in the third quarter of this year if a prediction by an analyst is to be believed.

According to a new report by CNET, NPD DisplaySearch, a global market research and consulting firm focusing on the display supply chain, has predicted that Apple is likely to refresh the iPad mini with a Retina display in the third quarter.

The same firm had earlier told the online publication that it was expecting two iPad mini refreshes, with the first one coming in the second half of 2013 and the other in first quarter of 2014. It had also added that the Q1 2014 refresh would see a Retina display. However it didn't specify as to which display technology would be used by Apple.

The current generation iPad mini features a display that has a resolution of 768x1024 pixels, and pixel density of 163ppi.

In March, DisplaySearch had made a similar prediction. It had said that a new iPad mini with an upgraded display was likely to appear later in the third quarter or fourth quarter of the year, but a Nexus 7 with a very-high-resolution display might make an appearance soon.

Paul Semenza, an analyst with the firm had said that it speculated that Retina version of the iPad mini with a resolution of 1536x2048 pixels, and pixel density of 324ppi, might go into production in the third quarter of 2013, with availability expected in the third or fourth quarter, as per a guess based on supply chain data. Semenza had also added that Apple could shortlist from companies such as LG Display, AUO, Japan Display, and Sharp to make the next iPad mini's display. He had stated that the challenge would be to fit a Retina display into the iPad mini's 7.2mm chassis.

Report by : Anupam Saxena

Apple borrowing from OS X team to expedite iOS 7 redesign

With Jony Ive leading the iOS team for a much-needed overhaul of the interface and design elements, we hear that work on the next version of the iPhone OS has reached a crescendo.

Apple’s iOS 7 is said to be a significant overhaul of the OS that is seen on iPhones, iPads and touchscreen iPods. AllThingsD reports that Apple is gathering additional engineers and UI designers from within the company to get a preview of the OS ready for the Worldwide Developers Conference (WWDC) in June.

Sources close to the project say Apple has been “borrowing” engineers from the OS X team to double its efforts on iOS 7. “Yes, yes — it’s essentially a repeat of the iPhone/Leopard scenario,” a source told the website, in reference to when Apple reworked OS X for the iPhone. “Not as much of a fire drill, though. It will ship on time.”

What changes will iOS 7 bring to this iconic interface

Ive, who is the Senior Vice President of Industrial Design at Cupertino, is overseeing UI design. Sources say the new design is sparse yet elegant, which is something of an Ive trademark. iOS 7 will reportedly have a flatter design that eschews skeumorphism to go for a simpler aesthetic. “You know Game Center’s green felt craps table? Well, goodbye, Circus Circus,” another source added.

With Apple not having changed much in the OS’s look and feel since it debuted in 2007, critics feel it is time to give iOS some new UI elements as well as a redesign. This is especially true at a time when new OSes are arriving on the scene. Whatever the changes, one can expect Apple to retain the stellar hardware-software optimisation and the intuitiveness of the UI that are so crucial in the overall iPhone experience. “The key question here is whether those changes deliver on the core Apple promise of improving customers’ ability to make productive use of the device and deliver a clearly superior experience,” Forrester analyst Charles Golvin told AllThingsD. “Presumably they don’t need the flashy stuff to realise that vision,” he added

Report by : Nikhil Subramaniam

Apple's iOS 7 to sport a flatter look, more 'glanceable' info

While everyone is looking forward to the next iPhone, many industry watchers are more excited about iOS 7 and the direction Apple takes with the next iteration of the operating system. 9to5Mac cites multiple sources who have seen or used iOS 7 saying that the operating system sports a redesigned user-interface that will be more in line with Microsoft’s flat-looking UI rather than the skeumorphic interface we have become so used to seeing on Apple devices.

Apple’s redesigned iOS experience has been developed by Apple Senior Vice President of Industrial Design, Jony Ive, who has long been known as the man behind iconic products such as the iPad, iPhone, iPod, and the Mac computers.

iOS 7 won't change how the homescreen looks

The new interface is “very, very flat,” one source said, while another said that the interface has lost the gloss, shine, and skeuomorphism (using design elements to make any UI seem like its real world counterpart, like the yellow background on a note-taking app) seen across all versions of iOS till date. A third source said iOS 7 has a kind of flatness that will remind many of Microsoft’s Windows Phone interface.

iOS 7 also reportedly retains all the user-friendliness of its earlier versions while never presenting a steep learning curve for long-time users. While iOS 7’s UI will definitely look different, the core apps and essentials, such as the famous lock screen and the home screen, will continue to function in a way iOS loyalists are used to.

The operating system is codenamed ‘Innsbruck’, according to three sources familiar with the development. The interface changes include cosmetic changes to the icons for Apple’s native apps and redesigned toolbars, tab bars, and other interface features across the system.

In addition, Apple has reportedly been mulling how to add more ‘glanceable’ information in the Notification Center, as well as system options in the panel. One idea is to implement new panels via swipes from the left and right sides of the display. Whether this feature will work like Android 4.2 Jelly Bean’s dual-notification drawer is not known.

Report by : Nikhil Subramaniam

Microsoft: Windows Competitor to iPad Mini Coming Soon

It's been rumored before, but Microsoft has dropped the first official word that it's working on Windows 8 tablets smaller than 10 inches. In a call with investors about the company's latest earnings report, Microsoft CFO Peter Klein said small-screen Windows tablets were in the works.

Klein said the software giant was working with its manufacturer partners to develop "a new suite of small touch devices powered by Windows" at "competitive price points," The Verge reported. He didn't elaborate on details, and neither did Microsoft spokespeople.

The exact screen size of these coming "small" devices is obviously unknown, but there's a big window between the largest Windows phone (the HTC Titan II, at 4.7 inches) and the smallest Windows 8 tablets, which bottom out at 10.1 inches. In interviews with Mashable during the launch of Windows 8 last fall, Microsoft employees said there was technically nothing holding back a small-screen Windows 8 tablet.

A recent study from TrendForce showed the 8-inch size for tablets is rapidly gaining market share, thanks in large part to the Apple iPad mini. It's probable Microsoft will target that size, although to be truly "competitive" with cut-price Android tablets such as the Kindle Fire HD, it will need to also consider the 7-inch size.

It's also an open question whether the devices will run Windows 8 or Windows RT, the latter being more suited for standalone tablets. However, Windows RT is reportedly floundering in the market, putting the longevity of the lower-power offshoot of Windows into question.

Would you buy a cheap, small-size Windows tablet? At what size and running which version of Windows? Let us know in the comments.

Microsoft Surface Pro

The Surface Pro looks very similar to the Surface RT that launched last fall, except Pro version runs Windows 8 Pro instead of Windows RT. That means it can run classic Windows apps just like any PC. It's a bit thicker and heavier to accommodate the greater processing power of an Intel Core i5 chip, but it's still compatible with the magnetic Touch Cover that attaches with a click. The Surface Pro goes on sale Feb. 9, starting at $899.

Kickstand

Just like the Surface RT, the Surface Pro sports a kickstand that holds the tablet upright at a fixed angle (about 22 degrees).

With Type Cover

Microsoft offers a flat Touch Cover ($119.99) and more keyboard-like Type Cover ($129.99), and they both fit either the Surface Pro or RT. They're sold separately in Pro's case.

Startup Screen

Here's what you'll see every time you boot up the Surface Pro.

Digitizing Pen

The supplied stylus works only with the Surface Pro. Although it attaches to the power port of the tablet for easy carrying, it's not a powered device.

Upright With Surface RT

The two Surfaces lean at the same angle, though it's easy to tell the two apart from the side. The Surface Pro has a seam in back of the tablet that serves as a vent for the cooling fan inside.

Compared With Surface RT

Head on, it's hard to tell the Surface Pro apart from the Surface RT.

Stacked With Surface RT

When stacked with the Surface RT, it becomes clearer that the Pro is a different device. The ports are different, and the Pro is significantly thicker (0.53 to 0.37 inch). It's also heavier -- 2 to 1.5 pounds.

Top View

The top of the Surface Pro has the power button and a microphone port.

Right Side

The right side has a microSD port for augmenting the onboard storage (either 64GB or 128GB) as well as a Mini DisplayPort for connecting to an external monitor. The five small dots are magnetic connects for the power cord as well as the supplied Pen accessory.

Left Side

The left side has a single USB 3.0 port, the volume controls and a headphone/microphone jack.

Bottom View

On the bottom you'll find the ports and groove for connecting either the Touch or Type Cover accessories.

Start Screen

The Surface Pro's resolution is full HD -- 1,920 x 1,080. This is a typical Start Screen setup.

Start Screen, Separate Monitor

If you connect to a separate monitor, Windows 8 will adapt the layout of the start screen to the new size -- in this case the 23-inch external display has the same resolution as the Pro, but more area.

Desktop

As a full PC, the Surface Pro can run "classic" windows apps, such as Chrome for the desktop. That doesn't necessarily mean those apps run perfectly, though -- as you can see, Chrome looks a little fuzzy.

What's in the Box

The Surface Pro comes with power cords and a digital Pen that's especially designed for this tablet.

Pen in Use

The Pen works with many drawing apps, such as Paint, FreshPaint and Autodesk Sketchbook Express, to name a few. The other end of the Pen functions as an eraser.

Box

The Surface Pro has very austere packaging.

Accessories

Many accessories are available for the Surface Pro, including the Touch/Type Covers, a variation of Microsoft's Wedge Touch Mouse, and cables (VGA and HDMI) for connecting to an external monitor from the Pro's Mini DisplayPort.

Wedge Touch Pro Mouse for Surface

The Surface version of the Wedge mouse is functionally identical to the earlier model, except it's styled to match the tablet.

Rumor claims iPad 5 will be thinner and lighter than current model

Apple rumors never die, they just continue to circulate until the new product finally launches and then rumors about the next generation begin. A new rumor is going around this week that comes from TGI Securities analyst Ming-Chi Kuo about the next generation iPad. The analyst published a note recently saying that he expects mass production and shipments of the iPad 5 to ramp-up in August to September.

He also says that it expects the next generation iPad, being called the iPad 5, to be roughly 15% thinner and 25% lighter than the current normal iPad model. That would mean that the next generation iPad will be somewhere between 7.5 and 8 mm thick. The analyst goes on to predict that Apple we use the same GF2 touch technology in the next generation iPad that it is currently using the iPad mini.

The analyst also believes that the batter capacity for the iPad 5 will be somewhere in the area of 25 to 30% less than the current tablet. He also believes the battery will also feature fewer cells in the battery than the current iPad features, allowing it to be thinner and smaller. The doesn’t necessarily mean (assuming any of his predictions are true) that the next-generation iPad will have less battery life than the existing product.

The analyst also predicts that Apple will continue to use Samsung processors inside the tablet going for the new A7x processor using 28-nanometer process technology. As with all rumors, you have to take these with a grain of salt. However, this analyst in particular does have a decent track record with his Apple predictions.

Report by : Shane McGlaun

Analyst Predicts Delays For iPhone 5S, Low-Cost iPhone, iPad Mini 2

Last week, Ming-chi Kuo of KGI Securities released a report suggesting that three upcoming devices from Apple, the iPhone 5S, iPad Mini 2 and the low-cost iPhone will see a delayed launch, as the company is facing separate production issues for the three devices.

Now, backing Kuo’s claim, Jefferies analyst Peter Misek, in his separate report suggests that the next couple of quarters could be quite difficult for Apple, as the company is facing a variety of production issues for the upcoming iPhone 5S, low-cost iPhone and the iPad Mini 2.

Misek, who recently visited Asia, says that Apple is facing pre-production issues for the iPhone 5S, and added that the mass production of the upcoming smartphone is at least a month away. He goes on to add that with the delay in iOS 7, a July launch for the iPhone 5 successor is out of the frame.

Coming to Apple’s upcoming low-cost iPhone, Misek says that it will most probably see a delayed launch as well, and will not surface anytime before the fourth quarter of this year.

Finally, he says that the next version of Apple iPad Mini will be delayed due to the issues pertaining to the Retina Display. However, he predicts that the iPad Mini 2 will be unveiled later this quarter.

Peter Misek’s comments are perfectly in line with those of Ming-chi Kuo of KGI Securities. Kou in his report had stated that the iPhone 5S is getting delayed due the Fingerprint sensor inside the iPhone 5S , as it is posing a number of technical challenges for Apple.

Kou blames the same Retina Display issue for the delay in the launch if the iPad Mini 2, which Misek has mentioned in his report.

As for the low-cost iPhone, Kuo says that Apple is facing issues pertaining to the plastic shell of the device. In a bid to keep the costs down, the low-cost iPhone is rumored to feature a plastic shell, which will be available in different colors and Apple is working quite hard to keep the shell as thin as possible. The coating and surface treatment for such a shell will take up more time, leading to the delay.

Report by : Abhinav Bhargava

iPad 5 production to reportedly begin in July-August 2013

Citing sources close to Taiwan-based supply chain companies, a DigiTimes report states that the production of the upcoming fifth-generation iPad will begin in July - August 2013. The source, however, said that the "yield rates" for important parts of the 9.7-inch tablet, especially the touch panels, could be "a major concern for smooth production."

The sources said the iPad 5 will be thinner and lighter than the iPad 4 and is said to embody a slim bezel, quite like the iPad mini. The device's display is likely to be supplied by LG Display and Sharp, while the touch panel assembly will reportedly be carried out by TPK, a Taiwanese company. The ITO thin-film will be supplied by Nitto Denko and Teijin.

Thinner and lighter than the fourth-generation iPad

The Apple iPad is said to be powered by an A6X processor. We've also heard that the iPad 5 may come with the same touchscreen structure as the iPad mini. The G/F2 (DITO) thin-film type touchscreen structure on the iPad mini will help the tablet achieve a thinner and lighter appeal, reports in the media said. For those not in the know, the current iPad models use a G/G touchscreen structure.

As is customary with Apple's products, we've had leaks about the next iPad coming in regularly. Some images of what is said to be the iPad 5 popped up in January this year. The pictures show the rear of a 9.7-inch tablet with a dubious-looking, smudged iPad logo and branding. If the images are genuine, this tablet will take a lot of cues from the design approach the Cupertino giant used with the iPad mini. The images were claimed to be sourced from an accessories manufacturer in China.

9to5Mac also revealed some more details about the dimensions and design of the new iPad. The site was informed that the images showed a prototype back piece for the fifth-generation iPad with a 9.7-inch display. They were also told that the casing is almost as thin as the iPad mini’s back. The Chinese accessories manufacturer sent several images to 9to5Mac, so if this is a hoax, it’s a rather elaborate one. The pictures line up well with a previous leak, which also claimed that the design of the iPad was about to be changed.

Report by : tech2 News Staff

How Apple iPhone got its name; it could have also been named the iPad

New Delhi: What we today know as 'iPhone' could have been named 'iPad'. According to a latest revelation by Apple advertising lead Ken Segall, Apple had mulled over many names before it adjudicated and ended up calling its smartphone 'iPhone', reports 9to5mac.

According to the report, Ken Segall, at an event at the University of Arizona's Department of Marketing, divulged details regarding the naming behind Apple's popular smartphone iPhone.

Before Apple resolved to call it 'iPhone', it had considered a few other names 'iPad', 'Telepod', 'Mobi', 'Tripod'. While the iPad ended up being the name for Apple's tablet PC, the name was considered to be used for the smartphone. Imagine had the 'iPhone' been named iPad, what name the 'iPad', Apple's tablet PC, would have been given? iTab?

Apple had mulled over many names before it adjudicated and ended up calling its smartphone 'iPhone'.

According to Segall, "Apple considered calling the device 'Telepod' because it sounded like a futuristic twist to the word 'telephone'." Apple had also thought of naming its smartphone 'Mobi' - a shortened version of the word 'mobile'.

The report says, The name 'Tripod' "did not win out, it did make a big impact on Apple's original presentation and marketing for the iPhone. 'Tripod' stems from the iPhone being a combination phone + iPod + Internet communications device."

Report by : TECH, IBNlive

Apple Hit With ‘Planned Obsolescence’ Lawsuit Over Fourth-Generation iPad

Apple’s legal troubles in Brazil grew on Thursday, as news emerged that the company has been hit with a class-action suit alleging that the quick release of the fourth-generation iPad constitutes “planned obsolescence” with regard to its predecessor.

Brazil’s Jornal do Comérciao reports that the Brazilian Institute of Politics and Law Software (IBDI) has filed suit against the iPad maker, claiming that the company could have, when launching the third-generation “New iPad,” implemented all of the technological upgrades it introduced in the fourth-generation model. Apple’s failure to do so, the suit alleges, amounts to planned obsolescence and unfair business practices.

“Consumers thought [they were] buying high-end equipment not knowing [it] was already an obsolete version,” says IBDI attorney Sergio Palomares.

The New iPad and iPad with Retina display are different in three ways.

For one, the current generation tablet includes an A6X processor versus the A5X processor that came with the discontinued iPad 3. It also includes a FaceTime HD camera. The previous model included a VGA front-facing videophone camera. Finally, the iPad 4 includes Apple’s new Lightning connector. The iPad 3 included a 30-pin connector.

It should also be noted that iPad 3 buyers who had purchased their tablet within 30 days of the iPad 4 announcement were able to make a return. In addition, some retailers extended this policy even further.

Apple also faces a struggle over rights to the iPhone brand in the country, having lost the right to the trademark after a court found in favor of Gradiente Electronica, a company that first registered the iPhone trademark in 2000.

Report by : Shivaank Rana

Apple's educational app iTunes U records more than 1 bn downloads

Apple today announced that its free educational content app, iTunes U, has crossed a billion downloads. iTunes U features a large online catalogue of free educational content from top schools, libraries, museums and organisations.

“It’s inspiring to see what educators and students of all types are doing with iTunes U,” said Eddy Cue, Apple’s Senior Vice President of Internet Software and Services. “There are now iTunes U courses with more than 250,000 students enrolled in them, which is a phenomenal shift in the way we teach and learn.”

Interestingly, over 60 percent of iTunes U app downloads originate from outside the US. Educators can create iTunes U courses in 30 countries including recent additions: Brazil, South Korea, Turkey and United Arab Emirates. These courses and other education content, can be accessed via the iTunes U app in 155 countries.

It's hard to believe, but despite a billion downloads a lot of iOS users are not aware of the existence of iTunes U and the courses it offers. If you haven’t already done so, you can check out the courses available on the app and enroll yourself in one if you feel like it.

Serving one billion "students"

According to a press release, more than 1,200 universities and colleges and 1,200 K-12 schools and districts host over 2,500 public and thousands of private courses encompassing the arts, sciences, health and medicine, education, business and more on iTunes U. Apple claims leading universities including Duke, Yale, Cambridge, MIT and Oxford enroll more than 100,000 students in single iTunes U courses, with Stanford University and The Open University, each surpassing 60 million content downloads. The Ohio State University’s General Chemistry course enrolled over 100,000 iTunes U students in the first year it was offered, Apple states.

Massive Open Online Course Provider (MOOC) Coursera also reached a major milestone earlier this month. The American Council on Education’s College Credit Recommendation Service (ACE CREDIT) evaluated and recommended college credit for five courses on the website.

Students who manage to complete certain courses from Coursera will now be able to potentially apply their credits for a college degree. Coursera cannot guarantee all colleges will approve of their credits, but over 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs, according to the online portal.

The five courses approved for college credit recommendation include four undergraduate credit courses:

Pre-Calculus from the University of California, Irvine
Introduction to Genetics and Evolution from Duke University
Bioelectricity: A Quantitative Approach from Duke University
Calculus: Single Variable from the University of Pennsylvania

Another course has been approved for developmental math vocational credit recommendation—Algebra from the University of California, Irvine

Besides Coursera, Massachusetts Institute of Technology, Open University and Alison were a part of a list we put together for online courses. You can read about these universities and the courses they offer here.

Report by : tech2 News Staff |

This Case Turns Your iPad Into the Ultimate Gaming Machine

What if you could have an iPad case that gives you better control over your games? That's the promise of Audojo, the case with joysticks and buttons that its makers say can turn your iPad into the ultimate gaming machine.

The cool thing about this iPad case is that it makes up for the weaknesses of the iPad when it comes to gaming. Attach an iPad 2, 3 or 4 to this case, and you'll have precise control using a couple of actual analog joysticks. In addition, you'll have two physical trigger buttons that are sorely missed when gaming on an iPad, especially with first-person shooter games.

Just above the joysticks are a couple of stereo speakers that but are designed to sound better than that single tinny speaker on all the iPads. The company says there will be two headphone jacks in the final version as well.

Audojo not only enhances gameplay with a tablet in your hands, but it also supports AirPlay. That will let you send your iPad's video to a larger screen that supports such things.

Considering that according to Flurry Analytics, 67% of all activity on iPads has to do with gaming, an iPad case that doubles as a precision controller is long overdue.

Audojo's creators are working with gaming manufacturers to make it easier to integrate support for this new controller/case, and they plan to provide a package that supports the Unity engine, used by 50% of mobile developers. In addition, they plan to make the case integrate with other game engines, and plan to offer a native software developers kit (SDK) for those who would like to create games and features for this hardware.

Currently, this Kickstarter project still has about $200,000 to go until it meets its goal of $240,747 when its deadline hits 26 days from now. So we'll see if the gaming community rallies around this innovative device.

Gamers, has your iPad controller arrived? Let us know in the comments.

Report by : Charlie White

Apple chart: Why iPhones, iPads are key to future results

A chart depicting the products that Apple sold for this quarter.

Apple Inc on Wednesday announced its results for Q1 2013 and the company posted a quarterly revenue of $54.5 billion and a quarterly net profit of $13.1 billion. While these numbers are a record by themselves for Apple, for Wall Street these numbers were just not good enough as Apple missed forecasts for the third time.

In q1 2013 Apple sold 47.8 million iPhones, up 29 percent from the year-ago period where it sold 37 million iPhones. This was however below the 50 million number that was forecast.

In the tablet category, Apple sold 22.9 million iPads during the quarter, compared to 15.4 million in the year-ago quarter. The company did not reveal numbers for iPad mini separately though so it’s not clear how well the iPad mini did.

As far as Macs were concerned the sales declined and Apple sold only 4.1 million Macs, compared to 5.2 million in the year-ago quarter. iPods too saw a decline with company selling only 12.7 million compared to 15.4 million in the year-ago quarter.

Clearly as the chart above shows, Apple’s biggest selling products are the iPhone and iPad. Here’s a quick look at some expectations from both.

iPhone: There’s no doubt that the iPhone has been the jewel in Apple’s kitty, and the one device that revolutionised the smartphone industry. But with the rise of Android and Samsung, the iPhone is often seen as too expensive and lacking some features. Rivals have created smartphones with bigger screens; the Galaxy S III has a 4.8-inch screen while Apple has only increased the size of the iPhone’s screen with the latest model. iPhone 5 has a four inch screen and some feel Apple needs to change this.

Then of course there is the high-price of the iPhone which makes it a very expensive smartphone to buy, especially in developing countries. In China, the world’s most populous nation with over 60 percent smartphone users, Apple is currently at number 6 in the market, according to research firm, IDC.

There were reports earlier this year that Apple could launch a cheaper iPhone with less expensive materials, such as a shell made of polycarbonate plastic. However Apple’s marketing chief Phil Schiller dismissed such rumours, stating that Apple wouldn’t resort to such tactics to grab a larger market share.

Interestingly the iPhone 5 is the top phone in the US market with a share of 48.1 percent according to Kantar Worldpanel, which measures smartphone sales data.

But this is a narrow lead and for most analysts the demand seems to be clear. If Apple wants to challenge Android, it needs to push out more versions of the iPhone, say perhaps with bigger screens and maybe a cheaper device. Tim Cook however feels that the current size of the iPhone works just fine.

iPads: The tablet market is one where Apple is still the global leader. Although Apple did not reveal the number of iPads and iPad mini devices sold for the quarter, this is one device where Android tablets haven’t overrun the market. According to research firm IDC, Apple has a 53.8 percent tablet market for the year 2012, and while this will slip to 49.7 percent in 2016, the Android army won’t catch up. In fact IDC expects Android’s tablet share which is 42.7 percent for 2012, to fall to 39.7 percent in 2016.

The truth is that the iPad still doesn’t have a serious rival. Google’s recently launched Nexus 10 tablet is still facing supply issues. Moreover Tim Cook, Apple’s chief executive, believes the iPad is already cannibalising sales for Macs, something he doesn’t see as a problem. He also said that the iPad is posing a serious challenge to Windows sales and expects the growth in tablets will lead to pressure on PCs.

However there have been reports that Apple cut supply orders from supplier Sharp for the screens of the 9.7-inch iPad as it attempts to deal with demand for the iPad mini.

Will iPad mini have a negative impact on the sales of the iPad in future? For now that doesn’t seem to be clear but there’s no doubt that 7-inch tablets could pose a serious challenge to the iPad and mini in the future.

The iPhone 5 and the iPad mini seen in this combo. AFP

Report by : Shruti Dhapola

Apple misses revenue forecast, stirs concern over growth

Apple Inc missed Wall Street's revenue forecast for the third straight quarter after iPhone sales came in below expectations, fanning fears that its dominance of the mobile industry was slipping.

Shares of the world's largest tech company fell 10 percent to $463 in after-hours trade, wiping out some $50 billion of its market value - nearly equivalent to that of Hewlett-Packard and Dell, combined.

On Wednesday, Apple said it shipped a record 47.8 million iPhones in the December quarter, up 29 percent from the year-ago period. But that lagged the 50 million that analysts on average had projected.

Expectations heading into the results had been subdued by news of possible production cutbacks by some component suppliers in Asia, triggering fears that demand for the iPhone, which accounts for half of Apple's revenue, and the iPad could be slowing.

But many investors clung to hopes for a repeat of years of historical outperformance, analysts said.

"It's going to call into question Apple's dominance in the space. It's still one of the strong players, the others being Samsung and Google. It's still a two-horse race, but Android continues to grow rapidly," said Sterne Agee analyst Shaw Wu.

"If you step back a bit, it's clear they shipped a lot of phones. But the problem is the high expectations that investors have. Apple's conservative guidance highlights the concerns over production cuts coming out of Asia recently."

Apple projected revenue of $41 billion to $43 billion in the current, second fiscal quarter, lagging the average Wall Street forecast of more than $45 billion.

Fiscal first quarter revenue rose 18 percent to $54.5 billion, below the average analyst estimate of $54.73 billion, though earnings per share of $13.81 beat the Street forecast of $13.47, according to Thomson Reuters I/B/E/S.

Apple also undershot revenue targets in the previous two quarters, and these results will prompt more questions on what Apple has in its product pipeline, and what it can do to attract new sales and maintain its growth trajectory, analysts said.

Net income of $13.07 billion was virtually flat with $13.06 billion a year earlier on higher manufacturing costs. The year-ago quarter also had an extra week compared to this year.

Gross margins consequently slid to 38.6 percent, from 44.7 percent previously.

"You can't just keep rolling out iPhones and iPads and think that everybody needs a new one," said Jeffrey Gundlach, who runs DoubleLine Capital LP, the $53 billion bond firm. "The mini? What is that all about? It is a slightly smaller iPad - so what? So that is our new definition of innovation?"

"There are plenty of competitors like Samsung and other legitimate competitors like them," added Gundlach, one of the highest-profile Apple bears. He maintains a $425 price target.

Shares of several of Apple's suppliers crumbled. Chip suppliers Skyworks and Cirrus Logic both fell more than 6 percent. Qualcomm Inc slipped 1.8 percent.

China is next big growth driver
Apple shares are down nearly 30 percent from a record high in September, in part on worries that its days of hyper growth are over and its mobile devices are no longer as popular.

Intense competition from Samsung's cheaper phones - powered by Google's Android software - and signs that the premium smartphone market may be close to saturation in developed markets have also caused a lot of investor anxiety.

Meanwhile, sales of the iPad came in at 22.9 million in the fiscal first quarter, roughly in line with forecasts.

On the brighter side, Chief Financial Officer Peter Oppenheimer told Reuters that iPhone sales more than doubled in greater China - a region that Apple Chief Executive Tim Cook has vowed to focus on as its next big growth driver.

The company will begin detailing results from that country going forward. Revenue from the region totaled $7.3 billion, up 60 percent from the year-ago December quarter.

"These results were OK, but they definitely raised a few questions," said Shannon Cross, analyst with Cross Research. "Gross margin trajectory looks fine so that's a positive and cash continues to grow. But I think investors are going to want to know what Apple plans to do with growing cash balance."

"And other questions are going to be around innovation and where the next products are coming from and what does Tim Cook see in the next 12 to 18 months."

Addressing production rumors

In an unusual move for Apple, which typically does not respond to speculation, Cook addressed the production cutback rumors at length on the conference call and questioned the accuracy of rumors about its plans.

Media reports earlier this month said the company is slashing orders for iPhone 5 and iPad screens and other components from its Asian suppliers.

"Even if a particular data point were factual, it would be impossible to accurately interpret the data point as to what it meant for our overall business, because the supply chain is very complex," he said, adding that Apple has multiple sources for components.

"Yields might vary. Supplier performance can vary. The beginning inventory positions can vary. There's just an inordinately long list of things that would make any single data point not a great proxy for what's going on," he said.

Apple's initial iPhone and iPad mini sales were hurt by supply constraints, but Cook expects supply to balance demand for the iPad mini this quarter. He also acknowledged that iPad was cannibalizing its high-margin Macintosh computers, but said it was a huge opportunity for the company.

"On iPad in particular, we have the mother of all opportunities here, because the Windows market is much, much larger than the Mac market is," he said. And I think it is clear that it's already cannibalizing some."

In another departure from tradition, Apple intends to tweak the way it both reports results and publishes forecasts.

Apart from breaking out results from China, the company also will no longer provide a single revenue or gross margin outlook. From Wednesday, it began providing the range it expects to hit, rather than the often-ludicrously conservative estimates that Apple was once notorious for.

The new policy took many by surprise.

"Before people could always ignore the guidance," said Dan Niles, Chief Investment Officer of AlphaOne Capital Partners, LLC. "Apple is telling investors that they need to pay attention to the guidance and you can't ignore it, which is basically what we all did in the past."

Report by : Reuters

Apple ships record 47.8 million iPhones and 22.9 million iPads in Q1 2013

Apple's blockbuster revenue growth is slowing drastically, as iPhone sales plateau and the company finds itself lacking revolutionary new products.

The company's warning, issued Wednesday as part of its financial results for the holiday quarter, sent Apple Inc.'s stock plunging by more than 10 percent, wiping out a year's worth of gains.

Analysts said the warning suggested Apple can no longer sustain its growth without some completely new products. Its last revolutionary creation, the iPad, was launched in 2010. Co-founder Steve Jobs, who was the engine behind the creation of the iPod, iPhone and iPad, died in 2011.

"It has been an overriding concern with Apple that they would not be able to generate revenue growth just rolling out new versions of old products," said Jeff Sica, president and chief investment officer of SICA Wealth Management. "Now they've proven it in their numbers."

On a conference call with analysts, Apple CEO Tim Cook rebutted that idea, but as usual, gave no details.

"We're working on some incredible stuff. The pipeline is chock full," he said.

Before he died in 2011, Apple co-founder Steve Jobs told biographer Walter Isaacson that he had figured out how to create a groundbreaking, easy-to-use TV set. Since then, company watchers have been waiting for the company to bring out something in that vein to re-energize sales. Cook said the company was still working on it.

"I tend to believe that there's a lot we can contribute in the space, and so we continue to pull the string and see where it leads us," he said.

Apple said it expects sales of between $41 billion and $43 billion in the current quarter, which ends in March. That would usually be little cause for concern, even though analysts were expecting $45.6 billion, because Apple usually lowballs its forecasts. But Chief Financial Officer Peter Oppenheimer said the company is changing its practices and providing a reasonable range rather than a single, easily achievable number.

That means Apple is looking at sales growth of about 7 percent from last year's January to March quarter, a striking number for a company that's posted double-digit increases in every quarter except one since 2008.

Apple's stock fell $55.58 to $458.43 in extended trading, after the release of the results. The shares are down 35 percent from their all-time high, hit Sept. 21, when the iPhone 5 launched.

Fueled by earlier versions of the iPhone, Apple's market capitalization decisively overtook that of Exxon Mobil in early 2012, making it the world's most valuable company. With Wednesday's drop, Apple is worth just 5 percent more than Exxon.

Apple's enviable profit growth also hit a wall in the October to December quarter. It said net income in the fiscal first quarter was $13.1 billion, or $13.81 per share, flat with a year ago. That still beat expectations, as analysts polled by FactSet had forecast earnings of $13.48 per share.

Revenue was $54.5 billion, up 18 percent from a year ago. Analysts were expecting $55 billion. Sales were held back by the fact that the latest quarter had 13 weeks, one less than the corresponding 2011 quarter.

Apple shipped 47.8 million iPhones in the quarter, about 1 million less than analysts were expecting, and 22.9 million iPads, also about 1 million short.

Most surprisingly, Mac sales were also 1 million short, at 4.1 million. That's a 22 percent drop from shipments a year ago. Oppenheimer said this was because Apple couldn't get the new iMac desktops out before December.

Cook said iPhone supplies were short too, and the company could have sold more of both the iPhone 5 and older iPhone 4 if it had been able to make more.

Most technology companies would be ecstatic if they posted 18 percent sales growth and $13 billion in profit for a single quarter, but Apple is held to a high standard, set by the shocking, iPhone-propelled success of the last few years.

"Apple has been growing tremendously and that level of growth can't be sustained by any company," said Sarah Rotman Epps, senior analyst at Forrester Research.

Investors have already been concerned that Apple's strategy of keeping the price of the iPhone high means it's losing out on sales, particularly overseas. Consumers are instead opting to buy cheaper smartphones running Google Inc.'s Android software, which has propelled South Korea's Samsung Electronics to the world's largest maker of smartphones. The average wholesale price of the iPhone is $640, hundreds of dollars more than smartphones with comparable hardware.

There's speculation among company watchers that the company will produce a cheaper iPhone, but that would cut into its profit margin and could tarnish the company's image as a purveyor of premium products.

Apple had warned that the holiday quarter's profits would be lower than Wall Street was initially expecting, because it had so many new products coming out, including the iPhone 5 and iPad Mini. New production lines are more expensive to run and yield more defective products that need to be redone or thrown out rather than sold.

Report by : Associated Press

Small is Big: the iPad Mini

Small tablets are tailor-made for road warriors. They’re easy, light, portable, and have all the power you need to access the internet or write an email on the go. More functional than smartphones, less bulky than laptops, they’re quickly becoming a must-have in every go bag. Now the only question is: Which smaller tablet should you carry? For me, there are two serious contenders — the Nexus 7 that’s already in my go bag and the iPad Mini Apple shared with me to review.

The iPad Mini comes with a legacy advantage. Apple is the market leader in tablets, selling more than 100 million iPads in fewer than three years. By one recent analysis, iPads account for 98% of all web traffic originating from tablets — and 54% from all mobile devices, including smartphones. It’s not as if no other tablet comes close: It’s more like every other tablet combined doesn’t come close.

Still, the iPad Mini was only introduced last October, which meant that competitors could beat it to the small tablet market. The Nexus 7 was released earlier in 2012, and, for all intents and purposes, introduced the category*. Cheaper worthy tablets like the Kindle Fire and Barnes & Noble Nook also joined the fray, creating need for Apple to create the iPad Mini, and the appealing chance for price pressure on the iPad premium.

So, which one is a smarter choice to toss in my go bag?

On one level, it comes down to the software, specifically the iPad’s iOS versus the Nexus 7′s Android platform. To note the obvious, app selection is vastly superior for Apple devices. The total number of apps available isn’t necessarily make or break, if the ones you need exist on your platform of choice. But the extent to which you need to be future proof is a factor. The Apple and Android development communities are both robust.

One of the simplest hardware decisions is one of the most powerful on the iPad: The placement of the iPad’s home button makes it possible to wake the device with one hand when it’s lying on a surface. On the Nexus 7 the wake-up key is on the recessed side and cannot even be accessed when laying flat. I often use a tablet right next to my laptop for quick reference, and being able to work it with one hand is big plus.

That home button is also your quick access to Siri. With a press of that button, you can access any app and conduct any web search. You can dictate and send SMS and IM messages. As a second screen — say you’re working at your laptop — hitting the home button and saying “open IMDB” doesn’t require nearly the level of disengagement from your main task as navigating for the app. It’s akin to hitting an intercom and having an assistant play a crucial supporting role as you stay focussed on the task at hand. Semantic search is still a work in progress, but don’t hold that against this technology, which in addition to providing reliable command and control is also a powerful dictationist. I use Siri to take notes all the time, and it’s usually the way I start writing anything. The Nexus 7 equivalent requires first navigating to a Google search prompt (after using two hands to unlock the device). A painfully long time passes at is processes the request, then tells you (verbally) it is opening the app, then opens the app. It’s a novelty to the point of being worthless. Add to that, in my far-from-scientific tests, word recognition was vastly superior on the iPad.

There other important differences. Google search from the home screen is unexpectedly better on the iPad than on the Nexus 7. IPad also has the clear edge in the PIM Department: both the mail and calendar clients are more usable.

I also prefer notifications on iPad — the Nexus 7 status bar can get clogged with icons, when all I need to know is that I have something awaiting my attention. Both reveal the entirety of waiting messages with a swipe down from the top, and Android notifications can all be closed with a single swipe — on the iPad, only each app’s notifications can be cleared en masse. Another a small improvement in iOS would be single icon indicating unseen notifications.

I didn’t want to like the new iPad charging interface – the lightning connector. Actually, I wanted to hate it, partly because of the inconvenience of potentially rendering my vast collection of “old” adapters obsolete and partly because Apple (almost certainly for revenue reasons, I imagine) chose to move to another proprietary standard and not micro USB. But after using thunderbolt for a while, I’ve become a convert. It’s superior to USB because it’s “reversible” — it can be plugged in either way. It also provides very satisfying haptic feedback that it has been inserted properly, unlike the analog plug or USB. And, hey, didn’t Palm change their connector more than a couple of times?

I also want to hate 4G models of any kind, not because of the extra hardware cost but because data plans aren’t rational — I would pay more than twice as much for AT&T’s “Mobile Share” for less data than I contract for now using three iPhones on my family plan. Under Mobile Share, if I added a tablet with only 1 GB of data that would increase the share plan by $25 a month. As it stands now, dropping my personal hotspot and adding 3 GB for an iPad a la carte would increase increase my bill by only $5 for that same 1 extra GB.

Paying a la carte for connectivity on your phones and tablet is maddening, but it’s hardly the fault of the tablet makers. The iPad’s implementation of 4G backup was perfect in my tests, which included above-ground rail commuting. If you happen to be in a 4G-LTE zone, the speed is breathtaking. If your phone can connect, so will your iPad, whenever you do anything which requires Internet, with no special setup. It’s like a hybrid automobile that starts using the standby gas on its own initiative: it is a non-event for you, just as it should be.

Peripheral cabling is also not a fair fight between the iPad and Nexus 7. An optional thunderbolt-to-HDMI cable means that an iPad can be your entertainment hub in most hotel rooms, patched right into that massive flat screen TV. At home it can substitute for a Roku or Apple TV for downloaded video — and it operates with the cover closed so there is no mirror image you have to hide under a pillow. At present, there is no equivalent on the Nexus 7.

The iPads — more accurately, iOS 6.0.2 — does lack one powerful feature found on the Nexus 7: Gesture typing. This input technique allows you to skate across the keyboard to form words rather than tapping individual keys. It’s a surprisingly effective way to type, especially when standing and holding the tablet in one hand. There is no equivalent for Apple devices. (Swype, a third-party app, has been available for Android devices for some time but gesture typing is now part of the OS of the latest Android update, Jellybean 4.2).

That one winning feature may not be a deciding factor. But while I have defaulted to my review iPad Mini for most everything in recent days, I continue to grab my Nexus 7 when I want to jot something down (and can’t, for ambient reasons, use Siri). But adding gesture typing would be an easy fix for Apple, one which would make their 7″ entrant virtually unassailable. I hope the company isn’t adamantly against it, as it seems to be regarding NFC — also ubiquitous on Android devices and nowhere to be found in the Apple universe.

On battery life, iPad Mini seems a clear winner as well. It charges more rapidly and discharges more slowly than the Nexus 7, in part because the Android device tends to like things running in the background. That’s addressable, but a nuisance task.

For the truly mobile — those of it who intend to lug it around to use it at home, at work, and everywhere in between — the iPad Mini is the clear choice for a smaller tablet. A Mini is destined for my go bag, probably this spring. There are rumors that a second generation is coming out as early as March, so I’m holding off on making the purchase until that clears up. But as soon as Apple makes its move on the iPad Mini, one will move into a permanent place in my go bag.

Report by : John C Abell

iPad Mini: What we don't know

Apple's mystery mini-tablet hasn't emerged yet, and there are still plenty of unknowns surrounding it. Here are the biggest unanswered questions.

The so-called "iPad Mini" is the Sasquatch of the gadget world. Rumored for years, the smaller iPad looms ever closer to reality, with rumors of an imminent announcement and release ramping up nearly every day.

The gadget blogosphere, bolstered by a recent flurry of leaked photos and specs, seems to be taking the existence of the iPad Mini as an inevitability. But even assuming that the Mini is real -- and that it's coming soon -- there are some key unknowns. Here are the biggest and most important ones.

How much will it cost? There's a price war going on among cheap tablets. Between the Google Nexus 7, the Amazon Kindle Fire HD, and Barnes & Noble's forthcoming Nook HD tablets, $199 can get you an astonishing amount of power in a 7-inch tablet. Closer to Thanksgiving, we'll get the 8.9-inch Kindle Fire HD ($299 and up) and 9-inch Nook HD+ for an incredible $269. Meanwhile, the new iPod Touch (think of it as an "iPad Nano") is $299 with 32GB of storage. And last year's iPad 2 is $399. That's a lot of amazing products in the $199-to-$399 price range -- where will the iPad Mini fit in?

What is the name? Is it really the iPad Mini? Or would it be, as some are saying, the iPad Air? Or could it be something else?

What's the screen resolution? Rumors say that the iPad Mini won't have a Retina Display like the 2012 iPad, but does that mean it will have the same 1,024x768-pixel resolution as the iPad 2? On a 7.85-inch display -- the rumored iPad Mini screen size -- pixel density would be higher than that on the larger iPad 2, even at the same resolution. Or, could the Mini have a new, unique screen resolution?

What's the storage capacity? The full-size iPad has 16GB, 32GB, and 64GB variants, but a lot of the budget tablet space features 7-inch devices with 16GB or even less, down to 8GB for the entry-level $199 Nexus 7. The logical capacities for a smaller iPad would be 16GB, 32GB, and 64GB, but would that make this newer iPad a more tempting purchase than the existing larger iPad?

What gets left out? Will the iPad Mini make any compromises to hit its (presumably lower) price range? No 3G or 4G wireless, perhaps, or maybe a downgraded camera. Maybe the onboard processor remains an A5, instead of an A5X or A6. Or, could the iPad Mini be just as full-featured?

Will there be candy colors? Early photos of what claim to be the iPad Mini show an anodized aluminum design that's very similar to the new iPod Touch. Those iPods now come in bright colors. Could the new iPad take a similar path? It's hardly an essential question, but color iPads could add a whole new "stocking stuffer" angle, and lead to accessory options.

Could there be a killer accessory? Much like the Smart Cover for the iPad 2, maybe the newest iPad will have a special case, cover, or clever add-on that makes the product more appealing. Think a next-gen Smart Cover -- maybe one with a keyboard.

Report by: Scott Stein

Apple set to take on Google, Amazon with iPad mini

Apple Inc will host an event on October 23 where it is expected to unveil a smaller iPad that will take on the less expensive devices offered by Amazon.com Inc and Google Inc, a source familiar with the matter said on Friday.

Wall Street analysts have predicted for months that Apple was planning a smaller, less costly version of its popular iPad to take on cheaper competing devices, a move that analysts say might hurt its margins, but prevent its rivals from dominating an increasingly important computing segment.

The source did not specify what the product would be and an Apple spokesman declined to comment, but tech blog AllThingsD reported earlier on Friday that Apple would launch the mini iPad at the event. The device is expected by many experts to have a screen between 7 and 8 inches (18-20 cm).

A smaller iPad will directly compete with e-commerce company Amazon's Kindle Fire HD tablet and Google's Nexus 7. Both devices have 7-inch screens and sell for $199. The first Kindle Fire, launched last year, grabbed about a fifth of the U.S. tablet market.

The consumer device company is gearing up to unveil a new product at a major October 23 event, said the source, who declined to be named, only days before Microsoft Corp unveils Windows 8 and its new Surface tablet on October 26.

The Nexus 7, manufactured by Asustek Computer Inc, has also seen a successful start, with the tablet selling out soon after launch.

One Wall Street analyst said he had seen the smaller tablet, dubbed iPad mini by the media, while visiting component suppliers in Asia.

"We actually had the opportunity to play with a pilot iPad Mini used by one of the vendors," Topeka Capital analyst Brian White said. "This 7.85-inch iPad Mini fit our hands like a glove and we were easily able to tuck the device in our sport coat, offering consumers a more mobile iPad experience for certain use cases."

Apple events are typically among the most-watched items on the industry calendar, monitored by consumers and technology investors alike. The event in two weeks, however, comes at a time of volatility for the popular technology stock.

Apple shares closed up 0.25 percent at $629.714 on the Nasdaq market, barely recouping significant losses suffered over the past three weeks as investors cashed out after it touched an all-time high of $705.07 on September 21.

While the stock is up 55 percent this year, it is currently down 10 percent from its record high. Wall Street analysts have cited concerns about disruptions of iPhone supplies after a riot in September at one of the plants operated by its main contract manufacturer, Foxconn Technology, and sharp criticism from consumers about errors in its Maps service.

Margin risk?

Apple's fiscal fourth quarter financial results are scheduled to be released on October 25, two days after the event, offering analysts a rare opportunity to grill executives about a new product just after details are made public.

A smaller iPad could be a risk to Apple's industry-leading margins, given that neither Amazon nor Google has been known to make much money from the smaller tablets.

Amazon's first Kindle Fire just about breaks even, according to IHS iSupply estimates. But the internet retailer sells a lot of content - music, books - through the Kindle line.

Google has said that its $199 Nexus 7 is being sold at cost and has no profit margin.

Apple earned gross margins of 23 percent to 32 percent on its U.S. iPad sales between October 2010 and the end of March 2012, a court filing by Apple in a recent patent trial against Samsung Electronics Co Ltd revealed in July. The company's margins on U.S. iPhone sales are almost double those of the iPad, averaging between 49 percent and 58 percent.

Sterne Agee analyst Shaw Wu said that, if Apple prices the smaller tablet between $299 to $349, it could maintain the current margins.

"The biggest cost in a tablet is the display," he said. "On a mini, the display will be a bit cheaper.

If the tablet is priced below $299, Apple could still maintain a decent margin if it offers 8 GB of storage instead of the minimum 16 GB storage it has in the current iPad, Wu added.

A mini version of the iPad marks a departure for the company that now has just one 9.7-inch iPad, although it does come with various storage options and starts at $499.

Late Apple founder Steve Jobs famously derided the 7-inch screen as unwieldy for tablet applications, saying the devices should come with sandpaper so that users can file down their fingers to use them.

But an internal email revealed during the patent trial showed that Internet chief Eddy Cue argued there was a market for a 7-inch tablet and that Apple should have one. The email, sent in early 2011 to top Apple executives, said Jobs had warmed up to the idea.

Struggling Silicon Valley technology icon Hewlett Packard Co was among the first to show, albeit unwittingly, that there was indeed a healthy market for cheap tablets. Sales of the TouchPad took off after the company slashed the price to $99 from $399 and $499 after deciding to kill the product.