NEW YORK (CNNMoney.com) -- IPhone users can now legally hack their phones to download applications that aren't in Apple's App Store.
The U.S. Copyright Office, a division of the Library of Congress, has authorized several new exemptions to the Digital Millennium Copyright Act (DMCA), one of which will allow mobile phone users to "jailbreak" -- or hack into -- their devices to use apps not authorized by the phone's manufacturer. The new rules will be published on Tuesday in the Federal Register.
Jailbreaking iPhones in order to download apps that are unavailable in Apple's App Store had been a legal gray area: Apple technically had the right to request a $2,500 government fine for damages every time a user violated the law that bans "circumvention of technological measures" controlling access to copyrighted works -- in this case, the iPhone's iOS software.
Apple (AAPL, Fortune 500) never actually requested that a fine be levied on an iPhone customer. But it fought to preserve its right to: Apple filed an objection last year to the rule the Copyright Office has now adopted.
The Copyright Office's decision means that jailbreakers will not face legal sanctions, but phone makers are still free to fight back technologically against the practice. Apple typically voids the warranty on iPhones that owners have hacked. The company maintains that tampering with the iPhone can introduce bugs and glitches.
"Apple's goal has always been to insure that our customers have a great experience with their iPhone, and we know that jailbreaking can severely degrade the experience," a company spokeswoman said in response to the Copyright Office ruling. "The vast majority of customers do not jailbreak their iPhones."
The Copyright Office also renewed and expanded its 2006 decision allowing mobile phone users to jailbreak their phones in order to switch carriers. Previously, the office allowed firmware updates to enable network-switching; this week, it added a provision allowing software hacks as well. In other words, iPhone users can now legally download software that will enable their phones to join a non-AT&T (T, Fortune 500) network.
The Copyright Office conducts an extensive rulemaking process every three years to determine what exemptions should be granted to the DMCA's anti-circumvention provisions. Each cycle, the office's previous exemptions expire unless they are renewed.
This time around, the Copyright Office granted six exemptions. In addition jailbreaking provisions, it renewed an exemption allowing e-book copy controls to be circumvented to enable read-aloud functions or to render the text into a specialized format. That's a clause advocates for the blind fought for.
The agency also granted an exemption allowing users to break DVD copyright controls to extract snippets of copyrighted movies for the purpose of incorporating them into new works, so long as the new creation is noncommercial. Known as "vidding," such remixing is a popular hobby among fan artists, and their creations are widely available for viewing on YouTube.
The ruling doesn't remove all of the legal murk around vidding. Creators still need to ensure that their clips meet "fair use" guidelines, and the Copyright Office specified that its exemption applies only to motion-picture snippets extracted "for the purpose of criticism or comment."
But advocates say the decision is a big step forward. Hollywood movie studios had long held that ripping DVDs for any purpose whatsoever is a violation of the DMCA.
"This ruling is useful because it removes a tool that was able to be deployed over and above copyright law that already has fair-use safety valves," said Rebecca Tushnet, a law professor at Georgetown University who testified in favor of the exception at a Library of Congress rulemaking hearing last year. "Now we're back to where we should have been all along, and we can continue the conversation about what's reasonable fair use."
Google (GOOG, Fortune 500) declined to comment on the implications for YouTube of the new exemption.
Lobbying group Electronic Frontier Foundation, which requested and backed the jailbreaking and remixing exemptions, celebrated its victory on Monday.
"We are thrilled to have helped free jailbreakers, unlockers and vidders from this law's overbroad reach," Jennifer Granick, EFF's civil liberties director, said in a prepared statement. "The Copyright Office recognizes that the primary purpose of the locks on cell phones is to bind customers to their existing networks, rather than to protect copyright." By David Goldman, staff writerJuly 26, 2010: 7:14 PM ET
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Showing posts with label Technologies News. Show all posts
Showing posts with label Technologies News. Show all posts
Jul 26, 2010
Pace plc proposed acquisition of 2Wire, Inc.
Pace widens US reach into telco market through proposed acquisition of 2Wire, Inc.
July 26 2010
Overview
2Wire is a leading provider of advanced residential gateways and associated software and services for the broadband service provider market
2Wire is the number one supplier into the fast growing US telco residential gateway market
Proposed acquisition widens out Pace’s US customer base and opportunity beyond cable and satellite to include the telco market
A logical extension of Pace’s successful strategy, adding another growth market to the Group’s well-established Americas business
Adds further software and gateway expertise that will strengthen the development of Pace’s home entertainment convergence strategy
Strong financial rationale: profitable and cash generative business. Benefit of increased scale and operational synergies
Summary
Pace plc (“Pace” or the “Company”) today announces the proposed acquisition of 2Wire, Inc. (“2Wire”), a leading provider of advanced residential gateways and associated software and services for the broadband service provider market, for cash consideration of $475 million (£308 million) (the “Acquisition”). The acquisition price is inclusive of 2Wire’s balance sheet cash at closing, anticipated to be approximately $55 million (£36 million).
2Wire has established customer relationships in the tier one telco market, in particular with service providers in North America. AT&T has been a customer of 2Wire for 10 years and 2Wire provides software and hardware solutions to enable AT&T’s U-verseSM suite of services that includes multiroom high definition TV, high-speed broadband and telephony. 2Wire is currently owned by a consortium including Alcatel-Lucent, AT&T, Telmex, and Oak Investment Partners.
The Company intends to finance the Acquisition from existing cash resources, together with new bank facilities. The new bank facilities are currently under negotiation and the Acquisition is conditional, inter alia, upon final agreement being reached on the terms of these facilities.
The Pace Board believes the Acquisition is a logical extension of its successful strategy and will enhance its established position in cable and satellite markets in the US with entry into the tier one telco market. At the same time, 2Wire’s software and gateway expertise will support Pace’s development of its home entertainment convergence strategy.
Following the completion of the Acquisition, Pace, already the number one global digital set-top box company, would also become the number one provider of telco residential gateway devices in the US and the number three globally.
The Acquisition is expected to be earnings and cashflow enhancing for the Company in the first full financial year of ownership1.
Neil Gaydon, Chief Executive Officer of Pace, commented:
“This acquisition will strengthen our Americas business, extending Pace’s US market coverage with entry into the tier one telco market. We have built a strong position in the US with cable and satellite operators and 2Wire, with its expertise in the broadband residential gateway market, will enable us to address a full range of US operator requirements. 2Wire’s software and gateway expertise will further drive development of our home entertainment convergence strategy. The transaction introduces deep client relationships with important customers including AT&T and further develops our platform to deliver ongoing sustainable growth.”
Pasquale Romano, Chief Executive Officer of 2Wire, added:
“Pace is an excellent strategic fit for the 2Wire business and will enable us to take our products and services to the next level of their development. The combined customer base, engineering capability and product breadth of Pace and 2Wire make this a compelling transaction for our customers, our employees and our end users globally.”
Tim Harden, President – Supply Chain and Fleet Operations, AT&T commented:
“AT&T looks forward to continuing our working relationship with 2Wire under Pace’s ownership.”
A presentation for analysts and investors will be held at 9.30 a.m. (London time) today at the offices of RBS, 250 Bishopsgate, London EC2M 4AA.
The Acquisition is conditional on (amongst other things) 2Wire shareholder approval, certain regulatory consents and finalisation of Pace’s bank financing arrangements. In view of its size relative to the Company, the Acquisition is also conditional upon Pace shareholder approval.
A circular including details of the Acquisition and the bank financing arrangements and containing notice of a General Meeting of the Company (at which a resolution seeking the requisite Pace shareholder approval will be proposed), is expected to be despatched to shareholders within 7 – 8 weeks (the “Circular”).
The transaction is expected to close in the fourth quarter of the current financial year following the satisfaction or waiver of all conditions.
Evercore Partners is acting as Sponsor and sole financial adviser to Pace. RBS Hoare Govett and JPMorgan Cazenove are acting as corporate brokers to Pace.
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July 26 2010
Overview
2Wire is a leading provider of advanced residential gateways and associated software and services for the broadband service provider market
2Wire is the number one supplier into the fast growing US telco residential gateway market
Proposed acquisition widens out Pace’s US customer base and opportunity beyond cable and satellite to include the telco market
A logical extension of Pace’s successful strategy, adding another growth market to the Group’s well-established Americas business
Adds further software and gateway expertise that will strengthen the development of Pace’s home entertainment convergence strategy
Strong financial rationale: profitable and cash generative business. Benefit of increased scale and operational synergies
Summary
Pace plc (“Pace” or the “Company”) today announces the proposed acquisition of 2Wire, Inc. (“2Wire”), a leading provider of advanced residential gateways and associated software and services for the broadband service provider market, for cash consideration of $475 million (£308 million) (the “Acquisition”). The acquisition price is inclusive of 2Wire’s balance sheet cash at closing, anticipated to be approximately $55 million (£36 million).
2Wire has established customer relationships in the tier one telco market, in particular with service providers in North America. AT&T has been a customer of 2Wire for 10 years and 2Wire provides software and hardware solutions to enable AT&T’s U-verseSM suite of services that includes multiroom high definition TV, high-speed broadband and telephony. 2Wire is currently owned by a consortium including Alcatel-Lucent, AT&T, Telmex, and Oak Investment Partners.
The Company intends to finance the Acquisition from existing cash resources, together with new bank facilities. The new bank facilities are currently under negotiation and the Acquisition is conditional, inter alia, upon final agreement being reached on the terms of these facilities.
The Pace Board believes the Acquisition is a logical extension of its successful strategy and will enhance its established position in cable and satellite markets in the US with entry into the tier one telco market. At the same time, 2Wire’s software and gateway expertise will support Pace’s development of its home entertainment convergence strategy.
Following the completion of the Acquisition, Pace, already the number one global digital set-top box company, would also become the number one provider of telco residential gateway devices in the US and the number three globally.
The Acquisition is expected to be earnings and cashflow enhancing for the Company in the first full financial year of ownership1.
Neil Gaydon, Chief Executive Officer of Pace, commented:
“This acquisition will strengthen our Americas business, extending Pace’s US market coverage with entry into the tier one telco market. We have built a strong position in the US with cable and satellite operators and 2Wire, with its expertise in the broadband residential gateway market, will enable us to address a full range of US operator requirements. 2Wire’s software and gateway expertise will further drive development of our home entertainment convergence strategy. The transaction introduces deep client relationships with important customers including AT&T and further develops our platform to deliver ongoing sustainable growth.”
Pasquale Romano, Chief Executive Officer of 2Wire, added:
“Pace is an excellent strategic fit for the 2Wire business and will enable us to take our products and services to the next level of their development. The combined customer base, engineering capability and product breadth of Pace and 2Wire make this a compelling transaction for our customers, our employees and our end users globally.”
Tim Harden, President – Supply Chain and Fleet Operations, AT&T commented:
“AT&T looks forward to continuing our working relationship with 2Wire under Pace’s ownership.”
A presentation for analysts and investors will be held at 9.30 a.m. (London time) today at the offices of RBS, 250 Bishopsgate, London EC2M 4AA.
The Acquisition is conditional on (amongst other things) 2Wire shareholder approval, certain regulatory consents and finalisation of Pace’s bank financing arrangements. In view of its size relative to the Company, the Acquisition is also conditional upon Pace shareholder approval.
A circular including details of the Acquisition and the bank financing arrangements and containing notice of a General Meeting of the Company (at which a resolution seeking the requisite Pace shareholder approval will be proposed), is expected to be despatched to shareholders within 7 – 8 weeks (the “Circular”).
The transaction is expected to close in the fourth quarter of the current financial year following the satisfaction or waiver of all conditions.
Evercore Partners is acting as Sponsor and sole financial adviser to Pace. RBS Hoare Govett and JPMorgan Cazenove are acting as corporate brokers to Pace.
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Jul 12, 2010
Verizon: Voice Is Dying
Ivan Seidenberg, Verizon CEO, saying “voice is dying” is a defining moment in telecom history. He didn't use those words, but his comments at Goldman Sachs are clear “we have to pivot and make a shift from the voice business to the data business and eventually to the video business. ... we must really position ourselves to be an extremely potent video-centric asset.”
“The issue there is perhaps it is like the dog chasing the bus a little bit. So what I need to do is get ourselves focused around the following idea, that video is going to be the core product in the fixed line business. ... I shed myself of the burden of chasing the inflection point in access lines and say I don't care about that anymore.”
Ivan is spending $18B on FiOS and has been a telco guy for four decades, If he can't see the way to a profitable voice business, who can? Randall Stephenson of AT&T was ahead of Ivan (and me) figuring this one out. I think he put wireline into “harvest mode” in 2002 when he cut capex literally in half. I don't think he would have bought the wired side of BellSouth if he could have overcome Ed Whitacre's ego. Saul Hansell was one of the few reporters to catch the story. Few in D.C., except Blair, understand these issues.
Verizon remains one of the most profitable companies in the world, but the wireline business is heading downhill so fast JPMorgan writes “Action will likely be necessary to support the dividend beginning in 2012.” They won't be able to support $5B/year in dividends without tapping wireless 45% owned by Vodafone. Martin Peers think Verizon will buy a satellite TV company. Knocking out one of the four TV providers is unthinkable if the Obama team is serious about competition, but that's not proven.
Written by Dave Burstein
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“The issue there is perhaps it is like the dog chasing the bus a little bit. So what I need to do is get ourselves focused around the following idea, that video is going to be the core product in the fixed line business. ... I shed myself of the burden of chasing the inflection point in access lines and say I don't care about that anymore.”
Ivan is spending $18B on FiOS and has been a telco guy for four decades, If he can't see the way to a profitable voice business, who can? Randall Stephenson of AT&T was ahead of Ivan (and me) figuring this one out. I think he put wireline into “harvest mode” in 2002 when he cut capex literally in half. I don't think he would have bought the wired side of BellSouth if he could have overcome Ed Whitacre's ego. Saul Hansell was one of the few reporters to catch the story. Few in D.C., except Blair, understand these issues.
Verizon remains one of the most profitable companies in the world, but the wireline business is heading downhill so fast JPMorgan writes “Action will likely be necessary to support the dividend beginning in 2012.” They won't be able to support $5B/year in dividends without tapping wireless 45% owned by Vodafone. Martin Peers think Verizon will buy a satellite TV company. Knocking out one of the four TV providers is unthinkable if the Obama team is serious about competition, but that's not proven.
Written by Dave Burstein
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May 23, 2010
Telecom ups ante in battle for broadband
Telecom has launched its first major advertising campaign for its network business, Chorus, as telcos and lines companies pitch for a slice of the Government's $1.5 billion ultra-fast broadband plan.
Television ads are voiced by actor Temuera Morrison and feature Chorus technicians driving around the countryside and working on the networks while conversing in techno-speak. Print ads will follow.
The ads come as the Government scrutinises confidential bids from Chorus, lines company Vector and 16 other organisations to build fibre networks across all or part of New Zealand's urban areas.
The fibre scheme promises to deliver speeds of 100 megabits per second to 75 per cent of the population.
Vector is also in the midst of a high-profile campaign promoting its bid to build a fibre network in Auckland as part of the Government plan.
Last week, Vodafone announced an alliance with Canadian fibre-grid operator Axia to create a single network that internet service providers could use to deliver broadband to customers.
Chorus came into existence two years ago following the Government-forced split of Telecom into network, wholesale and retail divisions.
Telecom head of communications and branding Melanie Marshall said that unlike the Vector campaign, which compares the present state of broadband to delivering water through a straw, Chorus aimed to raise awareness of the company rather than change perceptions.
She said the company wanted to explain the work done by the 1800 Chorus-branded vans.
The jargon-heavy speak of the technicians featured was a running gag but aimed to demonstrate staff and contractors' experience.
The ads would evolve during the campaign, planned to air until September to showcase network upgrade work done over that time, said Marshall.
Chorus is half-way through the programme of installing fibre to roadside cabinets operating as mini-exchanges aimed at boosting broadband speeds, also referred to as fibre-to-the-node.
"It seemed a good time to celebrate some of the successes we've achieved over the past couple of years," Marshall said.
But with Government plans to run a high-speed fibre broadband network to the doorstep of schools, hospitals, homes and businesses, Telecom faces having its investment overbuilt unless it can negotiate a compromise with the Government.
The Government has demanded any infrastructure partners in the billion-dollar network be unencumbered with a retail business.
Speaking at the company's third quarter financial briefing two weeks ago, Telecom chief executive Paul Reynolds said the company had already spent $249 million on operational separation - a model based on an "old copper world".
"We're all - government, industry players - planning our moves to a new fibre world," he said.
"It's simply unsustainable to continue to redesign the past at the same time as trying to build the future." By Helen Twose
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Television ads are voiced by actor Temuera Morrison and feature Chorus technicians driving around the countryside and working on the networks while conversing in techno-speak. Print ads will follow.
The ads come as the Government scrutinises confidential bids from Chorus, lines company Vector and 16 other organisations to build fibre networks across all or part of New Zealand's urban areas.
The fibre scheme promises to deliver speeds of 100 megabits per second to 75 per cent of the population.
Vector is also in the midst of a high-profile campaign promoting its bid to build a fibre network in Auckland as part of the Government plan.
Last week, Vodafone announced an alliance with Canadian fibre-grid operator Axia to create a single network that internet service providers could use to deliver broadband to customers.
Chorus came into existence two years ago following the Government-forced split of Telecom into network, wholesale and retail divisions.
Telecom head of communications and branding Melanie Marshall said that unlike the Vector campaign, which compares the present state of broadband to delivering water through a straw, Chorus aimed to raise awareness of the company rather than change perceptions.
She said the company wanted to explain the work done by the 1800 Chorus-branded vans.
The jargon-heavy speak of the technicians featured was a running gag but aimed to demonstrate staff and contractors' experience.
The ads would evolve during the campaign, planned to air until September to showcase network upgrade work done over that time, said Marshall.
Chorus is half-way through the programme of installing fibre to roadside cabinets operating as mini-exchanges aimed at boosting broadband speeds, also referred to as fibre-to-the-node.
"It seemed a good time to celebrate some of the successes we've achieved over the past couple of years," Marshall said.
But with Government plans to run a high-speed fibre broadband network to the doorstep of schools, hospitals, homes and businesses, Telecom faces having its investment overbuilt unless it can negotiate a compromise with the Government.
The Government has demanded any infrastructure partners in the billion-dollar network be unencumbered with a retail business.
Speaking at the company's third quarter financial briefing two weeks ago, Telecom chief executive Paul Reynolds said the company had already spent $249 million on operational separation - a model based on an "old copper world".
"We're all - government, industry players - planning our moves to a new fibre world," he said.
"It's simply unsustainable to continue to redesign the past at the same time as trying to build the future." By Helen Twose
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May 4, 2010
Apple faces US antitrust scrutiny
US authorities have signalled an interest in a potential antitrust probe into whether the software underpinning Apple’s ground-breaking iPhone unfairly locks out competitors, according to a person familiar with the matter.
The regulators’ interest comes in the wake of a dispute that broke out between Apple and Adobe, a software maker, over the latest version of the iPhone software, which was unveiled last month.
Steve Jobs, Apple chief executive, last week took the unusual step of writing a public letter explaining his decision to bar Adobe’s software from his company’s devices.
A decision on whether to open an investigation is at such an early stage that the Department of Justice and the Federal Trade Commission have yet to agree on which would take the lead in the matter. A decision is expected within a week.
The person familiar with the matter said an investigation by either agency would likely focus on allegations Apple operates a “closed” system.
In other words, federal officials are looking into whether the company is unfairly forcing developers to use Apple’s own tools to develop applications for the iPhone, iPad and iPod touch.
Apple declined to comment.
The DoJ’s antitrust division and the FTC declined to comment.
In his rare missive on Apple’s website last week, Mr Jobs sought to explain why Apple’s devices do not support Adobe’s Flash, a widely used video-streaming technology.
“Adobe claims that we are a closed system, and that Flash is open, but in fact the opposite is true,” he wrote.
Adobe’s Flash has become a de facto standard for the industry to create online games and stream video, with about 75 per cent of video served on websites using Flash.
Simon Buckingham, an app developer in New York, says Mr Jobs has demonstrated he is interested in open standards, including the HTML5 Web standard that provides an alternative way to rendering internet video.
Some developers point out that apps developed for Apple products cannot be used on other devices, however.
“Apple is making its platform richer, but also making it harder to switch to others,” said Bart Decrem, chief executive of Tapulous, which is one of the biggest game developers for the iPhone.
With a big lead over rivals such as Google and Microsoft, “they think it’s prime-time now” to press their advantage by tying developers more closely to their technology, he added.
By Stephanie Kirchgaessner in Washington, Chris Nuttall in San Francisco and Richard Waters in New York
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The regulators’ interest comes in the wake of a dispute that broke out between Apple and Adobe, a software maker, over the latest version of the iPhone software, which was unveiled last month.
Steve Jobs, Apple chief executive, last week took the unusual step of writing a public letter explaining his decision to bar Adobe’s software from his company’s devices.
A decision on whether to open an investigation is at such an early stage that the Department of Justice and the Federal Trade Commission have yet to agree on which would take the lead in the matter. A decision is expected within a week.
The person familiar with the matter said an investigation by either agency would likely focus on allegations Apple operates a “closed” system.
In other words, federal officials are looking into whether the company is unfairly forcing developers to use Apple’s own tools to develop applications for the iPhone, iPad and iPod touch.
Apple declined to comment.
The DoJ’s antitrust division and the FTC declined to comment.
In his rare missive on Apple’s website last week, Mr Jobs sought to explain why Apple’s devices do not support Adobe’s Flash, a widely used video-streaming technology.
“Adobe claims that we are a closed system, and that Flash is open, but in fact the opposite is true,” he wrote.
Adobe’s Flash has become a de facto standard for the industry to create online games and stream video, with about 75 per cent of video served on websites using Flash.
Simon Buckingham, an app developer in New York, says Mr Jobs has demonstrated he is interested in open standards, including the HTML5 Web standard that provides an alternative way to rendering internet video.
Some developers point out that apps developed for Apple products cannot be used on other devices, however.
“Apple is making its platform richer, but also making it harder to switch to others,” said Bart Decrem, chief executive of Tapulous, which is one of the biggest game developers for the iPhone.
With a big lead over rivals such as Google and Microsoft, “they think it’s prime-time now” to press their advantage by tying developers more closely to their technology, he added.
By Stephanie Kirchgaessner in Washington, Chris Nuttall in San Francisco and Richard Waters in New York
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Apple shifts 1m iPads in first month
Apple has sold 1m units of the iPad in the four weeks since it went on sale in the US, suggesting that demand for the touchscreen tablet computer is higher than anticipated.
However, the company faced criticism from users who complained that the 3G iPad, released at the weekend, was delivering poor video performance over AT&T’s network.
By hitting the 1m sales mark in 28 days, Apple can point to the iPad as one of its most successful product launches.
When the iPhone was released in 2007, it took 74 days for Apple to move 1m units. It sold 300,000 iPads on the first day the device went on sale, April 3.
Steve Jobs, Apple chief executive, said “demand continues to exceed supply’’ and that the company was working to catch up.
Apple said last month it would delay the international roll-out of the iPad as it struggled to keep up with demand. International pre-orders will begin next week.
Before the launch, critics wondered whether users would have room for a third device between a smartphone and a personal computer.
“It’s too early to say for sure, but it’s off to a good start,” said Gene Munster, an analyst with Piper Jaffray. “It looks like this is a category that is going to be around.”
Since its launch, iPad users have downloaded more than 12m apps from the App Store. Developers have created at least 5,000 apps unique to the iPad.
Apple also said customers have downloaded 1.5m eBooks from Apple’s new iBookstore, suggesting that many early users were using their iPads as an e-reader.
The company is positioning the iPad as a direct challenger to Amazon’s Kindle device, the market leader in e-readers. Mr Jobs has pledged that the iPad would “go a little further” than the Kindle.
Amazon does not release sales figures, but analysts estimate there are about 3m Kindles in use.
The rosy debut of the iPad has been marred by complaints from users who say the 3G service, which is provided by AT&T, compromises the quality of video and does not allow some apps to work.
In particular, users have complained that when YouTube is played over the 3G network, the quality is reduced from high definition to a lower-resolution version, and that the ABC Player does not work unless it is connected to Wi-Fi.
The Netflix app, however, was reported to be working on the 3G network.
“It’s annoying for people who went out and bought an iPad and thought they would watch video on the bus ride home,” Mr Munster said. “But I don’t think it’s a deal breaker.”
Apple shares rose $5.36, or 2 per cent, to $266.45 in late New York trade on Monday.
By David Gelles in San Francisco
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However, the company faced criticism from users who complained that the 3G iPad, released at the weekend, was delivering poor video performance over AT&T’s network.
By hitting the 1m sales mark in 28 days, Apple can point to the iPad as one of its most successful product launches.
When the iPhone was released in 2007, it took 74 days for Apple to move 1m units. It sold 300,000 iPads on the first day the device went on sale, April 3.
Steve Jobs, Apple chief executive, said “demand continues to exceed supply’’ and that the company was working to catch up.
Apple said last month it would delay the international roll-out of the iPad as it struggled to keep up with demand. International pre-orders will begin next week.
Before the launch, critics wondered whether users would have room for a third device between a smartphone and a personal computer.
“It’s too early to say for sure, but it’s off to a good start,” said Gene Munster, an analyst with Piper Jaffray. “It looks like this is a category that is going to be around.”
Since its launch, iPad users have downloaded more than 12m apps from the App Store. Developers have created at least 5,000 apps unique to the iPad.
Apple also said customers have downloaded 1.5m eBooks from Apple’s new iBookstore, suggesting that many early users were using their iPads as an e-reader.
The company is positioning the iPad as a direct challenger to Amazon’s Kindle device, the market leader in e-readers. Mr Jobs has pledged that the iPad would “go a little further” than the Kindle.
Amazon does not release sales figures, but analysts estimate there are about 3m Kindles in use.
The rosy debut of the iPad has been marred by complaints from users who say the 3G service, which is provided by AT&T, compromises the quality of video and does not allow some apps to work.
In particular, users have complained that when YouTube is played over the 3G network, the quality is reduced from high definition to a lower-resolution version, and that the ABC Player does not work unless it is connected to Wi-Fi.
The Netflix app, however, was reported to be working on the 3G network.
“It’s annoying for people who went out and bought an iPad and thought they would watch video on the bus ride home,” Mr Munster said. “But I don’t think it’s a deal breaker.”
Apple shares rose $5.36, or 2 per cent, to $266.45 in late New York trade on Monday.
By David Gelles in San Francisco
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