Dubbed “Kindle For iPhone,” the application will allow consumers to purchase and read Kindle books through an interface that the company describes as simple and easy-to-use. Amazon notes that there are “hundreds of thousands” of e-books that can be wirelessly transferred to the device of your choosing. Unfortunately magazines and Newspapers are not currently supported.

Primary features of the application include:

• Buy a Kindle book from your Mac, PC, or iPhone using a Web browser and wirelessly transfer the books to your iPhone
• Read first chapters of any book for free before you buy
• Download the Kindle books you already own for free — they are automatically backed up on Amazon.com
• Adjust the text size, add bookmarks, and view the annotations you created on your Kindle device

The application also comes coupled with Whispersync, allowing users the ability to seamlessly revert back and forth between your Kindle and Apple handheld, while maintaining bookmarks and reading locations synched between the two devices.

Because purchased items will be linked through an Amazon account, those using the iPhone app will need to make new purchases through the browser or a Kindle itself, which can then be pulled into the application the next time that it is launched. The application can be found here (iTunes link).

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World of Apple claims to have been informed of the upcoming event and believe that it will be similar to Apple’s notebook event held last October. My Apple Guide appears to have obtained similar information from multiple unconfirmed sources that express the same date for such an event and state that Apple will be announcing “new Mac minis, iMacs with the new NVIDIA chipset, Mac Pros with Xeon processors along with a pleasant ’surprise’”.

While World of Apple’s source has been unable to confirm any specific details regarding the event, they too expect to see Mac Mini, iMac and Mac Pro refreshes. Speculation of upgrades to Apple’s desktop hardware have been circulating for quite some time. Digital Daily’s John Paczkowski had speculated about just such an event yet was under the impression that it would be held in February, which has now come and gone. MacBlogz had previously taken an in-depth look at what we can expect over the next couple of months and maintain that all three machines are due for a refresh.

Despite a host of rumors surrounding a Mac Mini refresh even prior to Macworld 2009, we still have seen nothing tangible. Last month, Tom’s Hardware released information pointing to a March upgrade around the time of Cebit as they believe that Apple may use Intel’s Atom processor, which is typically used in netbooks. Additionally, a rather questionable image and video of a Mac Mini sporting an impressive 5 USB ports has made recent headlines, yet the validity of it remains unclear.

Apple’s professional class desktops have not been updated in over a year, leading many to believe that a refresh is imminent. Last month we had caught word that Apple may be ditching the Mac Pro’s cheese grater front for a sleeker micro-perforated face allowing us to mockup up what this could potentially look like. Back in November there was word that Intel’s new Nehalem class (Xeon 5500, 3500) CPUs would launch in the first quarter of 2009, and a Mac Pro update may be in line with this roadmap.

Small bits of information had emerged about an iMac refresh prior to Macworld 2009, as a possible announcement was said to be made, yet of course nothing came to fruition. We have previously explained that, “Currently, Apple’s iMacs use a dual-core setup, which for an all-in-one machines makes sense. However, the iMac in general still lacks in terms of serious multi-tasking power and processing performance. A move to desktop class processors could make the machine appeal to a much broader range of users. Apple would need to restructure the way cooling works on the iMacs though. The Core 2 Duo chips that are used now produce low power and low heat, which the iMac’s casing depends on.” linking to such rumors, Intel had readied some new processors, the Q8200s (2.33GHz/4MB L2), Core 2 Quad Q9400s (2.66GHz/6MB L2) and Core 2 Quad Q9550s (2.83GHz/12MB L2) with prices at US$245, US$320 and US$369, respectively.

While it is certainly plausible that all three machines will be upgraded in the near future, the validity of a March 24 desktop event remains speculative as all sources of information remain unconfirmed.

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The first video is the new 17″ Macbook Pro commercial. As we uploaded the video, we noticed that YouTube has made it even easier to add comments and annotations on the actual video, so we gave that a shot.

We shot the video over at ArsTechnica but the NYTIMES was running it too. The next video is the iPod touch commercial that Apple unveiled back in December of 2008.

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Last year’s event provided manufacturers with the opportunity to display their touch capable smartphones in efforts to come within a competing stride of Apple’s iPhone. While numerous gadgets will debut at the expo this year, the iPhone remains the looming force with heavy attention being focused on the iTunes App Store that now boasts over 20,000 applications. Such success brings envy as the other top mobile manufacturers are using the Mobile World Congress to unveil applications marketplaces of their own.

Fortune notes that this year’s highlights will include the following:

• Nokia’s Ovi Store: An online app and media portal that comes “pre-integrated” on Nokia’s (NOK) new N97, but will be available for download on a slew of existing Nokia phones come May.
• Windows Marketplace: Along with a new version of Windows Mobile, Microsoft (MSFT) announced Monday that it will open a new Windows Marketplace offering — you guessed it — 20,000 apps, some of which actually run on mobile devices.
• App Store for Symbian: PocketGear, which had previously built its own Palm App Store and an App Store for Windows Mobile, unveiled an App Store for Symbian, the operating system that runs Nokia’s smartphones. How it will compete with the Ovi Store remains to be seen.
• Android Market: Google (GOOG) opened an application marketplace for the Android platform last October, but so far it has only accepted free apps. Look for an announcement from Google this week about how that’s going to change.
• BlackBerry Applications Center: Research in Motion (RIMM) invited developers to submit programs to its forthcoming Applications Center in October. We may be hearing more this week about when that will open for business.
• Palm Software Store: This one went live in December with 2,000 apps and 1,000 free games available for download to both Palm (PALM) OS devices and Windows Mobile.

One other major headline that is making waves in Barcelona is Adobe’s announcement that it expects to ship a fully operational version of their flash player that will be set to run on Windows Mobile, Google’s Android, Nokia’s Symbian and Palm’s OS in 2010. Apple’s iPhone remains off of the list as CEO Steve Jobs has been known to oppose Adobe’s flash player, noting that it was simply not good enough to run on his device.

The Official GSMA Mobile World Congress website has live streaming video of the event that can be viewed here.

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Microsoft did not announce the number of stores they are planning to open, which products would be sold at the stores, or when they were planning on unveiling the first locations.

Former DreamWorks Animation executive David Porter was named Microsoft’s new Vice President of Retail Stores, and with the position comes most of the decision making responsibilities. Porter will report directly to Microsoft COO Kevin Turner.

Microsoft Appoints David Porter as Corporate Vice President of Retail Stores
Twenty-seven-year retail veteran will focus on transforming the PC and device-buying experience for retail consumers and developing and rolling out new Microsoft-branded stores.

REDMOND, Wash. — Feb. 12, 2009 — Microsoft Corp. today announced that David Porter will join the company as corporate vice president of Retail Stores. He will lead Microsoft’s efforts to create a better PC and Microsoft retail purchase experience for consumers worldwide through the development and opening of the company’s own retail stores. Porter will report to Microsoft Chief Operating Officer Kevin Turner. He is joining Microsoft from DreamWorks Animation SKG, where he was head of worldwide product distribution.

“I am delighted to welcome David to Microsoft,” Turner said. “This is an exciting time with our strong lineup of upcoming product releases including Windows 7 and new releases of Windows Live and Windows Mobile. We’re also working hard to transform the PC and Microsoft buying experience at retail by improving the articulation and demonstration of the Microsoft innovation and value proposition so that it’s clear, simple and straightforward for consumers everywhere. David’s unique and diverse background, coupled with his deep retail roots and distribution understanding, will be an invaluable asset in this long-term effort.”

“There are tremendous opportunities ahead for Microsoft to create a world-class shopping experience for our customers,” Porter said. “I am excited about helping consumers make more informed decisions about their PC and software purchases, and we’ll share learnings from our stores with our existing retail and OEM partners that are critical to our success.”

Defining the time frame, locations and specifics for planned Microsoft-branded retail stores will be Porter’s first order of business. The purpose of opening these stores is to create deeper engagement with consumers and continue to learn firsthand about what they want and how they buy.

Porter, whose new role and focus will complement the work Microsoft is already doing with its retail partners, will work in close partnership with leaders of existing retail programs in Microsoft’s Entertainment & Devices Division.

Before joining DreamWorks Animation in 2007, Porter spent 25 years at Wal-Mart Stores Inc. in roles of increasing responsibility and seniority in store operations, merchandising and information technology. In his last role at Wal-Mart, Porter was vice president and general merchandise manager of Entertainment, where he served as a strategic point of influence throughout the Wal-Mart business.

Porter’s first day at Microsoft will be Feb. 16, 2009.

Rumors regarding plans for Microsoft branded retail stores have been around for some time. The official announcement from Microsoft does not come as a shock. Retail expansion has been proven incredibly lucrative for Apple, with past reports explaining that Apple nets over $4,000/year for every square foot of retail space it operates.

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Shortly after Apple’s recent iPhone/iPod display table overhaul, the company will ready the third major interior design change to its brick-and-mortar locations. ifoAppleStore notes that these changes have included wood floors and the transition to a stainless interior in September of 2006. According to the upcoming plans, Apple will put hardware on the back-burner of their marketing strategy to focus the spotlight on software and the various digital features of Apple’s product lines. This correlates well with how Apple’s recent marketing of iPhones and iPod touches seems to have a heavier focus on the 20,000 applications that are now at the users fingertips, over promoting the actual devices themselves.

Upon entering the restructured floor space, customers are said to be greeted with a front section of the store dedicated to promoting “Why You’ll Love a Mac.” The correlating signage and literature will note the advantages of Macs over PCs. It is also said that the next section of the retail space will concentrate on the iLife suite of applications and how the software can assist in the user’s everyday digital lifestyle. Additionally a third section of the interior makeover will focus on the iLife suite of applications. The layout restructuring is said to begin taking effect as early as next week, yet could be several weeks for staff training and display changes.

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The bottom line is that Apple owns the App Store. As hard as it may be to face, Apple can pick and choose how to run the store, what applications to allow, and what gets rejected. It’s for this particular reason that the App Store has been met with such voracious criticism. However, without a devoted development community cultivating and populating the App Store, it would not have reached such levels of success so fast. Of note, the App Store recently passed the 500 million mark for downloaded apps.

As the current market evolves, Apple’s App Store will need to grow and adapt new practices better served to suit the community. Developers and consumers alike have interesting ideas on how to better the App Store, increase usability and overall deliver a more diverse experience. “A way for developers to address feedback/reviews in the app store would be great. Newegg allows its product manufactures to connect with reviewers to improve their services and products,” explains Shannon Atkinson from Njection, developers of Speed Trap finder app Njection mobile.

As the San Francisco Chronicle recently explained, Apple has in fact responded to some concerns over visibility in the App Store. They have added categories such as Staff Picks and What’s Hot, New and Noteworhty lists, and increased the lists to 100 applications per category.

“The challenge is discoverability,” said John Poisson, founder and CEO of Tiny Pictures, which recently released its Radar mobile picture app on the iPhone. “You can’t count on your apps being visible because there are too many apps.” We’ve been hearing requests for most recent week and most recent month categories for quite some time now. While the addition of new categories is welcomed in some scenarios, it’s a fine line between clutter and actually improving the ability to find new applications.

An iPhone developer who opted to remain nameless, refuses to concentrate his efforts on the iPhone until Apple releases concise iPhone development guidelines. “Until we get a clear set of development guidelines that states exactly what features are explicitly banned, we remain hesitant to dump significant money into any iPhone specific project,” the iPhone developer explains. “We will continue to develop for other mobile platforms, but nothing iPhone specific until we receive guidelines.”

Speculation over the the app store going social can be found sprinkled through forums and publications. Beyond simply sending recommendation links to friends, incorporating the iTunes genius and allowing highly targeted sharing between apps is something some are wishing for. “I’m really looking forward to something like what Xbox Live does, where your friends or your contacts can see what you’re playing,” said Walton, who has sold more than 250,000 copies of Retronyms’ Recorder app. “It’s like an automatic word-of-mouth recommendation.” Additionally, the idea of micro-payments or subscription services is something Walton says he’d like to see.

Analyst Jack Gold from J. Gold Associates expects Apple to incorporate many developer suggestions over the next 18 months. However as of now, he believes there is no real threat from any of Apple’s competitors, and we agree. Aside from needing new features and ways to discover applications, Apple needs to open up and be more vocal on how it’s dealing with potentially unethical scenarios, the issue of apps questionably being banned, and long-standing missing features such as background notifications.

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AppleInsider reveals that a recent research report given by Munster, the analyst states, “We expect Apple to design a connected television over the next two years (launching in 2011) with DVR functionality built in…These recorded shows could then sync with Macs, iPhones and iPods over a wireless network.”

A product of this nature and magnitude has been discussed and debated for quite some time. While Apple has openly denied such claims, many have negated the company’s disinterest in this market. Former co-founder of Weblogs Inc, GM of Netscape and current CEO of Mahalo, Jason Calacanis had previously alluded to claims that Apple had already begun work on HDTV sets. In an October interview with Cnet UK writer, Nate Lanxon, Calcanis reported that, “These LCD HDTVs will be fully networked, with the ability to stream all your iTunes content from your Mac or PC…they’ll function like a standard TV with an Apple TV box, only without the need for the box.”

A device such as this would undoubtedly provide consumers with a complete in-home entertainment experience, providing interactive TV, movies, music, and gaming in one centralized location. Using magnitude of iTunes and the ability to streamline entertainment in one nifty little package without requiring a set-top-box or additional device attachments, Apple could create a device that would be sure to stand out from the crowd.

Munster adds, “With the use of a CableCARD for digital HD TV signal, Apple could effectively replace the home entertainment system (including a music stereo, cable box, Blu-ray/DVD player, and gaming console) with an all-in-one Apple television.” In essence, he feels that an all-in-one setup could leverage Apple to command a premium among the competition, by using their software to provide a simple and cohesive system. Munster believes that Apple will setup the groundwork for such a device by the end of the year, by releasing an updated Apple TV that will support DVR functionality through the inclusion of a coaxial line-in.

AI reveals that Munster and his team provide 5 distinct reasons of why they believe we will see an Apple device such as this including:

1. Indications From Management: The company appears to be determined to capitalize on its opportunity to bring the iTunes ecosystem to the living room. On the Q1′09 conference call, interim CEO, Tim Cook, said, “We’re going to continue to invest in [the Apple TV], because we fundamentally believe there is something there for us in the future.”

2. DVR And TV-Related Patent Filings: Patents filed in October 2006 and published in March 2008 indicate that Apple is exploring DVR functionality, which would require updated Apple TV hardware (with a TV input) and software.

3. LG Partnership For LCDs: Apple recently announced a five-year, $500 million agreement with LG Electronics for supply of LCD screens. While this agreement likely covers LCDs for Macs, displays, and portable devices, it could also include LG’s larger LCD TV displays.

4. The Addressable iTunes User Base: Apple’s addressable market for Apple TVs is strong and growing. As of September 2008 Apple has over 65 million iTunes users, and as of December 2008 Apple has sold over 32 million iPhones and iPod touches, which can already be used as remote controls for the Apple TV.

5. Apple Could Win In A New Market: Piper believes the television market is increasingly moving towards a connected TV environment where software will be the key differentiator. Despite the ~70% price declines in the overall TV market in the past three years, Apple could enter this high volume (~10m US units a year) market at a premium price point because of its ability to deliver hardware and software that work well together. Apple has indicated that it only wants to participate in categories it feels it can make a difference (and win) in, and like the smart phone market, we believe connected TVs fit the company’s criteria.

While Apple insists that the current Apple TV acts a mere hobby for the company, Munster states, “While 3x growth may seem aggressive, on the December 2008 quarter conference call Apple indicated that Apple TV sales were up ‘almost 3x’ year-over-year in the quarter,” adding, “If we apply this growth rate throughout calendar 2009, it would indicate Apple TV units of over 6 million in calendar 2009.”

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Reuters regards him as being a powerful advocate of change in the overall distribution of media, in the face of losing ground to free online content. Jobs has been able to leverage the immense success of the iTunes store to keep a tight lid on the price of digital music, TV, and movies.

Some believe that with Jobs temporarily out of the picture, studio negotiations with Apple may become easier. An unnamed studio executive had expressed his feelings about this situation saying, “There may be some more room for advantageous deal-making between Apple and studios. Steve’s a control freak and tough negotiator, and Apple will lose a lot of bench strength, which may work to studios’ favor.”

While this type of optimism may hold elements of truth, others tend to believe differently. Many feel that Apple has a top notch team to take over negotiations and can still use the wild popularity of iTunes as a major bargaining chip, even with Jobs sidelined. USC business professor, Julia Plotts, remains under the impression that, “Hollywood’s always been Steve Jobs’ pet interest…He branched out into Hollywood and provided studios with a new mechanism to make money in the era of digital content delivery.” Adding, “I’m not sure what does to Apple’s foresight and ability in terms of negotiating with content providers and navigating Hollywood.”

While certainly no one can take away the cunning business practices that Steve Jobs has been known for, it is precisely these practices that have set up Apple to remain strong even when he is not around. By making iTunes what it is today, Jobs has successfully secured Apple’s vested interest in the digital entertainment industry for years to come. And lest we forget about Disney and Pixar.

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The Imminent Netbook Boom

There is no denying the fact that the netbook market has seen a recent surge in popularity. In difficult economic times, it can be tough to allocate a higher budget for tech devices, that many would feel to be luxury items. So, in comes the netbook, boasting cheaper price tags and subdued power, providing many with a sound option more attuned to their needs. While there is undoubtedly a large population of people that require higher performance equipment, there may just be an even larger audience that doesn’t. ABI Research analysts forecast the shipment of 35 million netbooks in 2009, rising to an astonishing estimate of 139 million by 2013.

Practice director, Kevin Burden, assesses this evolution as, “PDA’s began our reliance on instant accessible data while traveling. When PDA functionality converged with cellular voice, smartphones became the new darling of mobile professional technology that many expected to evolve into the hub for all data and communication needs for travelling professionals. Today, with a better understanding for what a smartphone is, is not, and may never be, along with a reality check on the usefulness of UMPCs, the market remains open for new device types.”

Apple’s iPhone had more than just a hand in raising the bar of the smartphone market, so why do they still appear so hesitant to enter into the netbook market? As many are aware, Steve Jobs & Co. have maintained their disinterest in stepping foot in what they believe to be a bargain-bin market. Even as recently as last week, at Apple’s Q1 financial earnings call, COO Tim Cook expressed their views on the subject noting, “We are watching the space,” Cook explained. But currently Apple does not think that the hardware and software offerings in this space are something their customers would appreciate. “Smaller screens, cramped keyboard.”

Moreover, Steve Jobs has remained adamant about the Cupertino-based company’s stance on the matter, claiming the iPhone to be the device that they offer in this space. In performing any simple search of common netbook prices, one can determine that there are several, well equipped devices that fall into the $300-$500 range. This margin compared to Apple’s most inexpensive model MacBook remains quite high, where the price is more readily comparable to the iPhone itself. This would presumably lead to a conflicting product line that could become a problem should Apple begin work on a comparably priced netbook.

What Can Apple Do?

So how can Apple effectively enter into this space? After repeated assurance that the company has no interest in what they believe to be a niche market, it wouldn’t seem plausible to expect anything like this in the near future. Yet how much are they missing out on here? Even if ABI’s figure’s may be a bit bloated, there is still no reason to believe that the netbook market is necessarily “niche”. Burden further argues that despite the appearance of low-cost, power stingy x86 and ARM processors, which were the technical keys to netbooks, industry and consumer expectations need to further evolve in order to meet market acceptance. Burden states, “In recent years, the industry still expected the smartphones to be more than they turned out to be, and most recently, MIDs were thought to be the next big mobile devices segment, but an unclear usage model continues to confuse the market. So today, netbooks’ time has come, and ABI research expects them to enjoy very strong market growth.”

If Apple were to change their attitude that they simply cannot find a way to fit in this market, and instead attempt to revolutionize it as they did with the smartphone market, who knows where the possibilities could lie. And with over $25 billion in cash, there doesn’t seem to be much impeding the way of R&D. It is to the understanding of many that Apple has no interest in “tarnishing” the brand, by putting out junk, but just because the price points and capabilities of netbooks are lower, that does not make them junk. In fact they can be very useful to a large populous of people that would otherwise not have been turned on to Apple. Many could argue that selling the iPhone at Walmart would have a negative effect on the brand’s image, yet the company has chosen to pursue the partnership. Bottom line, Apple will probably not attempt to enter this market and instead opt to beef up their already existent touch devices, yet the netbook market is nothing to scoff at, and may just be an area that Apple needs to take a closer look at.

With netbook sales estimates such as these, Apple needs to lose their phobia of small keyboards and less adequate processing power to create a device that can lend itself to this demographic. Forget about the Intel Atom, it’s too slow, and forget about ARM Cortex. Isn’t this why they bought PA Semi?

The Actual Device

So maybe Apple could offer a netbook-like device that would sit perfectly in their product lineup after all. Imagine this: The device has NAND flash storage palettes slightly higher than the iPhone and iPod touch. If customers are looking for storage options higher than the iPhone, they will be pointed to the netbook. This device wouldn’t be married to the AT&T network, however if you own an iPhone, it’s an added perk and a SIM card slot would let you utilize your AT&T connection at any time. Take it another step further and make the iPhone a mouse that recognizes all of the swipe and touch gestures that users have become used to over the last few years.

Integrate a custom designed chip that isn’t as slow as the Intel Atom, and doesn’t need as much processing power as ARM. This way Apple would finally be making use of their P.A. Semi acquisition. The device could be priced anywhere between $399-$650. Obviously, the feature sets will vary with lower priced models housing less storage and slower processors. And the higher priced models having more options, superior features, processors and more memory. The iPhone and netbook don’t need to be clumped together. The two separate devices can be married and coexist in Apple’s ecosystem nicely by playing features off of each other. There is absolutely no reason why Apple can’t offer devices at this level, keep up their brand reputation with high-end devices and tap into the netbook boom that is happening right in front of their face. Even though the device wouldn’t be in place for extended periods of productivity, at a certain point, the masses determine the truth, and netbooks don’t seem too small for everyone.

Image credit: Flickr

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