Peter Kafka of Media Memo spoke with music executives who indicated that Apple has not yet approached the largest labels to obtain the necessary licenses for offering streaming content. Executives, however, said they do expect iTunes to be overhauled, even without a streaming service, and the new iTunes could be unveiled at next Wednesday’s event. He said users should “think social, not streaming.”

“Apple plays its cards close to the vest even with the music labels it works with, so the people I’ve talked to are making informed guesses,” Kafka said. “That said, music sources tell me they’re expecting a lightweight, Web-based version of the iTunes store. The new version would be designed to sync up easily with the rest o the Internet and make it much easier for customers to share their musical tastes (but not songs) with friends.”

Executives said they believe a Web-based version will allow buyers to purchase content through the Web-based version. It could also offer easier integration for services like Twitter and Facebook, allowing users to link to the store and share playlists, songs and albums.

“Some label executives also speculate about a wireless system that makes it easier for you to manage iTunes purchases,” he wrote. “In theory, Apple could make it possible for you to move a copy of a song you bought on your iPhone onto your laptop without having to manually connect the two devices.”

While Apple’s current contracts do offer it the ability to add features like wireless syncing of purchases on up to five devices at a time, they do not have the necessary deals to offer a cloud-based streaming service. Kafka said it’s “possible, but not probable” that the company could go ahead and launch such a service without the necessary deals from record companies.

Apple first began migrating iTunes to the cloud last November, when it quietly launched iTunes Preview. The Web-based service allows users to view iTunes content without launching Apple’s desktop media management application. Subsequent updates have brought about browser-based song sampling and the ability to view App Store software.

Shaw Wu with Kaufman Bros. issued a note to investors Thursday in which he said one potential surprise from Apple could be a redesigned iPod nano with a smaller form factor and no click wheel. Wu said sources have indicated that Apple has procurement plans for a redesigned iPod nano.

“We frankly are not sure if this model will see the light of day,” Wu said. “But this would be a big departure from the design it has had since 2005 when it replaced the iPod mini. From our take, a radical refresh may make sense to jumpstart what was once its top-selling iPod.”

He also noted that the image of an acoustic guitar in Apple’s invitation to its Sept. 1 event may suggest that the rumored Apple TV update will not be a part of the event. Wu does not believe a new Apple TV will be announced, though he added that the Cupertino, Calif., company “may surprise.” But the guitar image in the invitation, coupled with the timing of the event earlier in September than usual, seem to indicate otherwise.

“We find the timing somewhat curious and a little earlier than usual,” Wu said. “Historically, AAPL has held these events after Labor Day and sometimes as late as October. Because of the timing and the image on the invite, we would be surprised if a new Apple TV is announced at this event.”

He continued: “But then again, AAPL is known to surprise.”

The analyst has also heard from sources that Apple will introduce a new iPod touch with most of the features found in the iPhone 4, including a faster processor, high-resolution retina display, video recording, and a forward facing camera for FaceTime video chat.

Apple is also expected to offer a new low-end $199 model with limited storage and the same feature set as last year’s iPod touch. This would replace the current entry level model, he said.

Apple sent out invitations on Wednesday for its “special event” on Sept. 1 in San Francisco, Calif. The Wednesday event will begin at 10 a.m. Pacific Time, 1 p.m. Eastern, and will be held at the Yerba Buena Center for the Arts. AppleInsider will have full live coverage.

“The iPhone has no secret for you?” the job listing posted earlier this month reads. “Well, that’s what you think… join us and develop the most challenging product of your life!”

Qualcomm built the first CDMA-based cellular base station in the early ’90s. Today, CDMA is used by a number of carriers around the world, most notably Verizon Wireless in the U.S. Recent rumors have suggested that Apple is eyeing an early 2011 launch for a Verizon-compatible CDMA iPhone.

In addition to creating CDMA chips, Qualcomm also works to ensure that mobile platforms run well with the company’s wireless technology. For example, it has an established Android Team at Qualcomm Innovation Center, a subsidiary of Qualcomm Incorporated, that aims to make Google’s mobile operating system run better on the company’s chipsets.

Ajay Dudani, staff engineer and manager at the Innovation Center, admitted earlier this year that many people do not understand Qualcomm’s role in the industry. He talked about how he works to optimize Android for Qualcomm’s hardware.

“At a very high level, our software teams work to get Android platform running optimally on Qualcomm chipsets in terms of power, performance and new features,” he said. “We are also responsible for bringing up the Android platform on new chipsets, making sure our software ports are up to date with the latest public releases of the Android platform and helping ensure compatibility to avoid fragmentation.”

Qualcomm’s role in improving software performance on its hardware may shed light on why the CDMA chipset is looking to hire an iPhone software developer. Currently, under the company’s list of supported OS platforms, only Windows Phone, Android and Brew Mobile Platform are listed. The Qualcom Developer Network also only offers support for those three platforms.

It’s also possible, however, that Qualcomm is looking to hire for another software-based venture, such as its FLO TV mobile video platform. This year the company partnered with Mophie to release a case that brought FLO TV to the iPhone and iPod touch. But Qualcomm is also shopping for a buyer for the unprofitable FLO TV.

Qualcomm’s job application does note that it is looking for a candidate that has been “exposed to application or game development on mobile for years,” and seeks an employee who has experience with wide ranging skills including Objective C and Xcode, UI design, and file, network and socket programming.

Rumors of a deal between Qualcomm and Apple have existed for months, and are always connected with a Verizon-compatible CDMA iPhone. The iPhone currently relies on chipsets from Infineon for its 3G HSDPA network access.

Numerous reports have claimed that Apple has already built and is testing a CDMA iPhone, code-named N92, that would run on the Verizon network. IT is said that the hardware is in the engineering verification test phase, which is two steps away from full-fledged production.

People familiar with the latest build, reportedly known as 10H531, said the lone issue is associated with VMware. Having it installed can cause USB devices to not work when the Mac is awoken from sleep mode.

Those same people said Apple has asked developers to focus on a few key areas for the latest beta, including iCal, Mail, USB Devices, QuickTime, Time Machine and 3D graphics. The delta update is said to be a 557MB download.

The latest beta comes just a week after the last build was supplied to developers. And the previous, first build arrived only six days before that.

Mac OS X 10.6.4 was released in mid-June, packing fixes for trackpads on Apple’s notebook computers, and also addressing issues with Adobe’s Creative Suite 3. It also included Safari 5, Apple’s latest Web browser.

Update:Various users have reported being charged thousands of dollars through the scam, in which the charges are made to an iTunes account through PayPal. While the problem was reported as a “major security hole” associated with iTunes accounts by TechCrunch Monday, John Paczkowski of Digital Daily reported that it’s actually a phishing scam that’s been around for some time.

“Sources close to Apple tell me iTunes has not been compromised and the company isn’t aware of any sudden increase in fraudulent transactions,” he wrote.

PayPal has said it is reimbursing customers for the fraud, but added that the problem “is happening on the iTunes side.” Further questions about the scam were referred to Apple.

An Apple spokesperson told the San Jose Mercury News that the company is aware of the problem.

“Among other new security measures iTunes now requires more frequent re-entry of a customer’s credit card security code,” the spokesperson said. “But if your credit card or iTunes password is stolen and used on iTunes, we recommend that you contact your financial institution and inquire about canceling the card and issuing a charge-back for any unauthorized transactions. We also recommend that you change your iTunes account password immediately.”

Earlier this summer, iTunes was hit by developer and account fraud, which some developers used to boost their sales rankings. Apple said, in that incident, that only 400 accounts were compromised of the more than 150 million active iTunes users.

This month, Apple also bolstered the security of its Apple ID accounts, which are shared by iTunes. Users must verify their account information when they log into new devices, and new iTunes account passwords must have at least 8 characters with mixed capitalization.

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Because keyboards accessories must connect to the iPad wirelessly, the Bluetooth device required approval from the U.S. Federal Communications Commission, which is how the forthcoming accessory was exposed. Created by Shenzhen Paoluy Silicone Technology Co., Ltd., the product dubbed “BL-BKB76″ passed through the FCC last Friday and will likely be available for sale in the U.S. soon.

The clamshell design allows the iPad to be used in a laptop-style configuration, with the screen propped up and a flat keyboard to type on. Such a product would also allow the screen to be protected when stored.

The product is also set for debut in the U.K., where it is dubbed “KeyCase iPad Folio with Integrated Bluetooth Keyboard” and carries a price of £59.95, or $92.72 U.S.

The product’s manual says keyboard has a reported standby time of 100 days, and offers a “theoretical” uninterrupted working time of 90 hours, though the U.K. retailer pegs the usage time as 45 hours. The battery, which must be charged separately from the iPad, takes between 4 and 4-and-a-half hours to charge, and can be charged with a standard Apple USB iPod connector cable.

Other advertised features include a “durable leather style exterior,” a magnetic fastener that keeps the case closed, and auto-sleep mode when idle for 10 minutes.

A clamshell Bluetooth keyboard concept was shown off soon after the iPad was released and gained considerable attention, but that product was simply a hypothetical rendering and never became a reality.

Though it does not ship with a keyboard, opting instead to let users rely on the virtual touchscreen, the iPad is compatible with nearly any Bluetooth keyboard, including Apple’s own hardware. Apple also sells a keyboard dock made specifically for the iPad.

Even with its lack of standard keyboard, the iPad has been viewed as a threat to the low-cost, low-power netbook market. Major netbook makers have reduced shipments for the remainder of 2010, after sales of those products have slowed since the release of the iPad. Meanwhile, Apple’s touchscreen tablet sold 3.27 million units in its first three months.

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Highlighting the success of the iPad in the business world, The Wall Street Journal on Tuesday noted that while many companies would not approve the iPhone for corporate use when it debuted in 2007, the iPad has quickly found acceptance with IT departments at companies. Part of that is because the iOS mobile operating system, previously only available for the iPhone and iPod touch, has been updated with business-friendly features such as Exchange e-mail and remote erase capabilities.

“Apple has addressed these and other issues, including the ability for companies to encrypt information on iPhones and set up secure ways for employees to connect to corporate networks,” author Ben Worthen wrote. “The latest version of the operating system used by the iPhone and iPad adds features that make the devices easier for a tech department to manage, including the ability for businesses to distribute internally developed apps without going through Apple’s App Store.”

The report noted that more than 500 of the more than 11,000 applications currently available for the iPad are business-oriented. One free application from Citrix, which allows employees to access corporate programs on the iPad, has seen more than 145,000 downloads.

Other advantages to the iPad: its $499 starting price makes it less expensive than a traditional business laptop, and more functional for activities like working standing up or giving a presentation.

The paper recalled that Mercedes-Benz dealers have been equipping employees with iPads to help them sell cars. The car maker began using the iPad at 40 dealerships in May, and earlier this summer said it was considering using the iPad at all 350 of its U.S. locations.

Other specific corporate uses of the iPad mentioned in the Journal’s report include:

• Baush & Lomb Inc., maker of eye-care products, had about 50 employees using an iPad soon after its launch. The company built its own application for salespeople. The company likes the fact that the device starts quickly and has a long battery life.
• Kaiser Permanente, an Oakland, Calif., health-care organization, has been testing the iPad in a 37,000-square-foot technology lab for viewing medical images such as X-rays and CT scans.
• Though Chicago law firm Sonnenschein Nath & Rosenthal LLP banned the iPhone when it first came out, it preordered 10 iPads before it was released. The company now has more than 50 attorneys equipped with iPads, and plans to issue them as an alternative to laptops next year.

Earlier this summer, Apple revealed that the iPad is at use in more than 50 percent of Fortune 100 companies. Companies such as SAP and Wells Fargo

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According to Caixin, the cases will be offered to all iPhone 4 customers by the carrier as a “free gift.” Apple’s latest handset goes on sale in mainland China on Sept. 16.

In July, after reports of antenna issues with the iPhone 4 reached a deafening buzz in the tech community, Apple announced it would give away free cases to all iPhone 4 purchases made through Sept. 30. Customers can order their free case through the iPhone 4 Case Program App Store software.

The report did not indicate whether China Unicom’s complimentary case will be mailed after the purchase, or made available to the customer when they buy their iPhone 4.

Earlier this month, a Wi-Fi-enabled 8GB iPhone 3GS was released by China Unicom. Apple’s previous phones sold legitimately in the nation of over one billion did not have Wi-Fi, because the Chinese government had temporarily banned the technology.

Following the launch of the iPhone 4, China Unicom is expected to soon offer Apple’s iPad for sale.

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The company said in a press release that over 800 universities throughout the world have active iTunes U sites, and nearly half of those distribute their content publicly through the iTunes Store.

“iTunes U makes it easy for people to discover and learn with content from many of the world’s top institutions, said Eddy Cue, Apple’s vice president of Internet Services. “With such a wide selection of educational material, we’re providing iTunes users with an incredible way to learn on their computer, iPhone, iPod or iPad.”

New content was just added to iTunes U from universities in China, Hong Kong, Japan, Mexico and Singapore. iTunes users now have access to over 350,000 audio and video files from educational institutions around the world.

iTunes U was created in collaboration with colleges and universities, and aims to make it easy to extend learning, explore interests or learn more about a school. The service has a dedicated area within the iTunes Store.

The educational service offers users public access to content from world-class institutions such as Harvard, MIT, Cambridge, Oxford, University of Melbourne and Universite de Montreal. iTunes U gives anyone the chance to experience university courses, lab demonstrations, sports highlights, campus tours and special lectures.

All iTunes U content is free, and can be accessed by iTunes users on Mac or PC, or wirelessly downloaded through the mobile iTunes Store onto an iPhone, iPad or iPod touch.

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iOS 4.1 is currently in its third beta, released earlier this month. It addresses many issues that users have experienced, including problems with Bluetooth connectivity.

The official list of fixes and enhancements does not make mention of the proximity sensor or Bluetooth functionality. However, time spent with the latest beta build shows a marked improvement with those features.

The most recent update also added new features such as a new API that allows apps to access contact thumbnail pictures.

However, the software is still not ready for public use, as major glitches remain that prevent it from release. Most notably, there are memory leaks in beta 3 that can cause serious issues.

Proximity sensor

While not documented by Apple, experience with the iOS 4.1 beta has shown that the proximity sensor on the iPhone 4 is far more reliable. Since the device launched in June, users have reported that the handset’s touchscreen will sometimes turn on in the midst of a call, resulting in accidental button presses that can end a call or place someone on hold.

At a press conference in July, Apple Chief Executive Steve Jobs confirmed that his company was aware of the problem and working on a fix. But the first two minor updates to iOS 4, in the form of 4.0.1 and 4.0.2, did not address the problem.

Game Center

Game Center has been touted by Apple as a major feature of iOS 4. It works much like Microsoft’s Xbox Live, making it easy for users to play and talk about games.

With Game Center, users will create an alias that represents their online persona. The community service allows players to interact with one another anonymously via their alias. When Game Center is launched later this year, users will be able to create a friends list, set “status updates” and more.

Developers access the features of Game Center through the Game Kit framework API provided by Apple. The API includes leaderboards for scores, allowing players to compare their performance in a game to friends and others.

Game Kit also allows developers to enable player-versus-player matchmaking for their titles. Through a Game Center account, players will be able to compete in online games against one another, or with a group of people.

As noted earlier this week, the latest beta also added a Game Center restriction. The feature allows the owner of an iPhone, such as a corporation or parent, to restrict access to certain functions of the device.

Other changes

Users will have the ability to turn on or off a “Check Spelling” feature in the Keyboard section of the iPhone’s Settings application. Users can have misspelled or unrecognized words highlighted without enabling the Auto-Correction functionality.

As previously reported, the latest beta of iOS 4.1 allows users to conduct FaceTime video chat via another person’s e-mail address. This is likely how the forthcoming iPod touch refresh, widely expected to have a forward-facing camera, will allow users without a phone to engage in a FaceTime call.

Camera controls now reposition between portrait and landscape orientations. Currently in iOS 4, the flash and camera selection buttons will only rotate accordingly when the camera is physically turned. Now, the buttons transition to remain atop the screen, regardless of orientation.

Developers have access to new functions to identify the BSSID or SSID of the current Wi-Fi hotspot that the user is connected to.

iOS 4.1 carries a new modem firmware of 2.10.01.

Developers now have new methods to save images to a user’s photo album.
iOS 4.1 also includes new capabilities that allow applications to control fonts.

In addition, an e-mail claimed to be from Apple Chief Executive Steve Jobs was revealed Friday by MacRumors. A user complained to Jobs that iOS 4 currently runs very slow on their two-year-old iPhone 3G. Jobs allegedly responded with: “Software update coming soon.”

It would be safe to assume that Jobs, if the e-mail is legitimate, is referring to iOS 4.1. The report noted that it has been said anecdotally by developers that iOS 4 performance is improved on the iPhone 3G with the betas.

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