50-percent of your iPhone purchase to pad Apple's wallet?

Sure, LG's KE850 Prada handset will set users back a cool $778, and the Google Switch just might pop in to make things a bit more interesting, but a recent research report has unveiled that Apple's sure-to-be-sold-out iPhone is a lean, mean, profit-generating machine nonetheless. While Apple's well-known for selling its iPods (and to a lesser extent, its Macs) for much, much more than it cost to manufacture, even we're a bit taken aback at how hard those corporate buyers must be workin' those suppliers on this one. According to iSuppli (no affiliation with Apple, of course), the 4GB iPhone will yield a "49.3 percent profit margin on each unit sold at the $499 retail price," while the 8GB rendition will kick back a 46.9-percent margin. You heard right, they're supposing the $499 mobile only costs Apple $245.83 to produce, while the 8GB flavor demands just $264.85. Of course, this isn't the first time a hot-selling product has been broken down by the numbers to prove just how ripped off we're all getting (if these numbers are to be trusted, that is) -- but hey, unless you've got the means to buy capacitors and LCD touchscreens by the boatload, you're probably stuck paying exactly what they ask. Plus if all this sudden competition gets a bit too heated, don't think Apple doesn't have any room to introduce a (highly desired) price drop

iPhone ain't widescreen!

You know how Steve Jobs and Apple like to boast of the iPhone's ability to function as a "widescreen iPod?" Well, anyone who sat in Moscone Center to witness the holy unveiling surely noticed the screen cropping (letterboxing) that occurred when Steve played Pirates of the Carribean. That's because the iPhone isn't "widescreen" as the term is customarily understood outside of the reality distortion field -- it is not a 1.78:1 (16x9) aspect ratio. Rather, the display utilizes a 1.5:1 aspect ratio. That puts the iPhone somewhere in the proprietary zone between the NTSC or PAL television standard 1.33:1 (4x3) and a proper widescreen 1.78:1 (16x9) aspect ratio like that thrown off Apple's new Apple TV. As demonstrated during the Jobsnote, true widescreen videos can be zoomed to fill the iPhone's screen but only at the expense of cropping the left and right-hand side video. Will this, uh, clarification or other nits prevent the first batch from selling out? Oh hells no. But at least now you know the truth

AppleTV's Specs: Not That Impressive

We don't know what we were expecting the specs on the AppleTV to be—nothing extraordinary, we're sure—but what we see now is kind of deflating. The ATV has a 1.0GHz Pentium M-based chip which is down-clocked for a 350MHz bus and has 2MB of L2 cache. Not the type of powerhouse you'd want to hack and put Linux on. The peripherals aren't that impressive either. There's a 40GB, 2.5-inch PATA hard disk, an nVidia G72M with 64MB of DDR2 RAM, 256MB of 400MHz DDR2 main system RAM, and 802.11n compatibility (it works with Airport Extreme). We suppose the meager specs are why the machine costs only $299, but it makes us wonder how well it'll handle Apple's 1080 HD trailers

Meizu thinks small, copies Apple again with Music Card

Sure, there've been props all around for Meizu's M6 Mini Player, but that still doesn't alleviate those concerns of iPod "homage." Now that we've spotted this upcoming "Music Card" nano foe, who's design was apparently inspired by a user submitted competition, it's pretty clear where Meizu is getting its design ideas, but we're not sure we'd have it any other way. With a shiny metal back, "reminiscent" of the original nano, along with that glossy plastic metal front and familiar screen size, the Apple references are hard to skip. Meizu mixes things up with its scroll strip and that little button on the bottom left, along with what we're assuming is expansive codec support and probably even video playback. Dimensions are familiar as well, at 6.9mm thick and 39mm wide, but enough about similarities: we're looking forward to a bit more info on this player to see just what Meizu has planned for us on price, availability and features.

iPhone: does Cisco miss out due to prior art?

Apple's argument that Cisco's claim to the name iPhone is "silly" is about to get a whole lot more cogent. It's still debatable whether Cisco has rights to the name, but eagle-eyed reader mrsalty points out the fact that Cisco's patent filings for the "Internet telephone" (and at least two others) reference the iphone name and attribute it to the Cidco (a company now owned by Earthlink) is not encouraging; the fact that the filing reads with the following language is even less so. "Also known [to Cisco at the time of filing the patent] is a dedicated 'Web phone,' such as the iphone, manufactured by Cidco..." Yikes. It's difficult to tell whether this iphone predates Cisco's acquisition of the patent holdings originally filed by Infogear in 1997, but prior art is prior art, and they admitted as much right in their own patent filing. What's more, the The Internet Phone Company has owned and operated iphone.com since 1995, and we don't see Cisco suing them. So basically we really hope this whole thing will be quick and painless since we don't think anyone wants another RIM vs NTP saga on their hands, but things will get very interesting if it works out such that the iPhone name is released to the commons and everyone and their mother can make an iPhone. (Sony Ericsson aiPhone or Motorola IFON, anyone?) Our advice to the people Behind the Human Network: focus on that human network of yours and let the iPhone go, kid.

The iPhone is not a smart phone

And the reality slowly sets in about what the iPhone is and is not. Noted analyst and Engadget pal Michael Gartenberg stated that the iPhone is first party software ONLY -- i.e. not a smartphone by conventional terms, being that a smartphone is a platform device that allows software to be installed. That means hungry power-users -- you know, those people ready and willing to plunk down $600 for an 8GB musicphone -- won't be able to extend the functionality of their phone any more than Apple (but thankfully not Cingular) dictates. Other unfortunate realities about the device:

• No 3G. We know you know, but still, it hurts man.
• No over the air iTunes Store downloads or WiFi syncing to your host machine.
• No expandable memory.
• No removable battery.
• No Exchange or Office support.

Apple Accessories

Apple accessories are big business, and the Apple TV is no different. Apple has teamed up with XtremeMac to help you get your Apple TV connected, and they seem to have every option covered: HDMI, Component, HDMI>DVI, Toslink -- even analog audio, (no ATV doesn't support composite or S-Video). This takes care of most sets, but many TVs only have one HDMI input, so XtremeMac is also offering a HDMI 4-port switch. You can use the supplied remote or the button on the front, but there's no auto switching, which would have been nice. The surprisingly delightful part is the price; while many major retailers charge as much as $150 for a HDMI cable, this one is only $19.99. No word on the price of the switcher, but all will be available by the ATV's launch in February.

Cisco sues Apple for trademark infringement: ruh roh!

"It is our belief that Apple intends to agree to the final document." Not so much. We're not quite sure what broke down in talks between Cisco and Apple, but they ain't playing friendly no more. Cisco just announced that it has filed a lawsuit in Northern California to prevent Apple from infringing upon its registered iPhone trademark. The word yesterday was that Apple and Cisco had been involved in "extensive discussions," and that they were expecting Apple to sign up for whatever final agreement they proposed. "Cisco entered into negotiations with Apple in good faith after Apple repeatedly asked permission to use Cisco's iPhone name," says Mark Chandler of Cisco. "There is no doubt that Apple's new phone is very exciting, but they should not be using our trademark without our permission." Obviously all we've heard so far is Cisco spin on the situation, but so far it sounds like they're being fairly reasonable with Apple on this -- it is their own dang trademark after all. So what gives, Apple?

How the iPhone avoided being leake

We all knew Apple was going to announce the iPhone at yesterday's Macworld keynote, but we didn't really know, y'know? Despite years of anticipation, false starts, and promised rumors, we can't decide if we're more impressed by what Apple managed to pack into the iPhone's slender frame or their ability to keep the entire thing an absoloute secret. Fortune takes a look at the process, covering the highly secretive cooperation with cell-carrier Cingular, the unusually distributed effort within Apple itself, and the increasing strain placed on the personal lives of employees tasked with long hours and strict confidentiality. Perhaps most interesting was the creation of "bogus prototypes" that they used with not only Cingular executives but with Apple exployees themselves. Lucky for us, an insider deep inside the core of Apple sent us this cameraphone snap of an early prototype featuring a (now absent) external antenna. What is that, a granny smith? Sweet! Errr, rather, sour.

The Apple iPhone runs OS X

Capping literally years of speculation on perhaps the most intensely followed unconfirmed product in Apple's history -- and that's saying a lot -- the iPhone has been announced today. Yeah, we said it: "iPhone," the name the entire free world had all but unanimously christened it from the time it'd been nothing more than a twinkle in Stevie J's eye (comments, Cisco?). Sweet, glorious specs of the 11.6 millimeter device (that's frickin' thin, by the way) include a 3.5-inch 480 x 320 touchscreen display with multi-touch support and a proximity sensor to turn off the screen when it's close to your face, 2 megapixel cam, 4GB or 8 GB of storage, Bluetooth 2.0 with EDR and A2DP, WiFi that automatically engages when in range, and quad-band GSM radio with EDGE. Perhaps most amazingly, though, it somehow runs OS X with support for Widgets, Google Maps, and Safari, and iTunes (of course) with CoverFlow out of the gate. A partnership with Yahoo will allow all iPhone customers to hook up with free push IMAP email. Apple quotes 5 hours of battery life for talk or video, with a full 16 hours in music mode -- no word on standby time yet. In a twisted way, this is one rumor mill we're almost sad to see grind to a halt; after all, when is the next time we're going to have an opportunity to run this picture? The 4GB iPhone will go out the door in the US as a Cingular exclusive for $499 on a two-year contract, 8GB for $599. Ships Stateside in June, Europe in fourth quarter, Asia in 2008.

The genesis of the iPhone

"Everybody hates their phone, and that's not a good thing. And there's an opportunity there." Jobs told Time for a rather interesting and revealing piece chronicling the genesis Apple's new iPhone. (We didn't realize for sure that the iPhone can't use its WiFi to download tracks over the air, for instance.) What started more than two and a half years ago as a foray into tablet computing to counter Microsoft's efforts (whodathunk, Apple really was thinking of building a tablet PC), which inevitably led them to creating the iPhone. If you're the type wondering things like why the new device doesn't have rubber feet, check out the piece, it's a good read.