* Eddy Cue lobbied for mini-iPad, Jobs was "receptive"
* Apple reveals billion dollar ad-spend for iPhone, iPad
* Judge warns attorneys against 'theatrics'

By Poornima Gupta
SAN JOSE, Calif., Aug 3 (Reuters) - Steve Jobs was receptive
to Apple Inc making a smaller tablet, a senior
executive said in a 2011 email revealed on Friday, fanning
speculation it plans to make a mini-iPad to take on cheaper
gadgets from Google Inc and Amazon.
An Apple mini-version of the market-dominating 10-inch iPad
could counter increasing inroads made by tablets such as the
Kindle Fire and Nexus 7. But the company has never confirmed the
intensifying talk of such a launch.
Vice President Eddy Cue urged then-chief operating officer
Tim Cook in January 2011 to build a 7-inch tablet, according to
an email from Cue that Samsung Electronics presented
as evidence in a U.S. patent trial.
In an email addressed also to software chief Scott Forstall
and marketing head Phil Schiller, Cue said he believed there was
a market for a 7-inch tablet and that "we should do one."
Cue's brief email was introduced on Friday as part of a
high-wattage trial that will play out in a San Jose courtroom
this summer and is expected to transfix the technology industry.
"There will be a 7-inch market and we should do one. I
expressed this to Steve several times since Thanksgiving and he
seemed very receptive the last time," the executive wrote in the
email. "I found email, books, Facebook, and video very
compelling on a 7-inch. Web browsing is definitely the weakest
point, but still usable."
Cue had previously forwarded an article entitled "Why I just
dumped the iPad (hint: size matters)". He wrote: "Having used a
Samsung Galaxy, I tend to agree with many of the comments below
(except actually moving off the iPad)."
Apple and Samsung are going toe-to-toe in a patents dispute
mirroring a struggle for industry supremacy between two rivals
that control more than half of worldwide smartphone sales.
The U.S. company accuses Samsung of copying the design and
some features of its iPad and iPhone, and is asking for billions
of dollars in damages and a sales ban. The Korean firm, which is
trying to expand in the U.S. market, says Apple infringed some
of its key wireless technology patents.
Cue, who rose to prominence overseeing the iTunes and Apps
stores, became the company's senior vice president of Internet
software and services in September. His email was introduced by
Samsung during a cross-examination of Forstall on Friday.
In the email dated Jan. 24, 2011, Cue said he had broached
the idea of a smaller tablet to Jobs several times since
Thanksgiving, and the co-founder was receptive "the last time."
That appeared to run counter to Jobs' famous dislike of
smaller tablets. In 2010, Jobs told analysts on a conference
call that 7-inch tablets should come with sandpaper, so users
could file their fingers down to a quarter of their size.
"There are clear limits of how close you can physically
place elements on a touch screen before users cannot reliably
tap, flick, or pinch them," Jobs, who died in October after a
years-long battle with cancer, said at the time.
"This is one of the key reasons we think the 10-inch screen
size is the minimum size required to create great tablet Apps."
Apple still dominates the global tablet market, but rivals
are closing in. Google unveiled the Nexus 7 in July to strong
reviews. And Amazon's Kindle Fire tablet, with a price tag about
half the iPad's, has encroached on Apple's market share.
Analysts say smaller, cheaper tablets entice cost-conscious
buyers unwilling to spend $500 or more for an iPad.

The trial began this week and has already granted Silicon
Valley an unprecedented peek behind the curtain of Apple's
famously secretive design and marketing machine.
Forstall described the early days of the iPhone's top-secret
inception. The smartphone that went on to revolutionize the
mobile industry was developed in a building engineers nicknamed
the "purple dorm." Security was so tight employees sometimes had
to swipe their badges four times just to get in, he said.
Earlier on Friday, Schiller told a packed courtroom that
Apple's strategy in maintaining its market momentum is to "make
the product the biggest and clearest thing in advertising."
The 15-year Apple veteran told the jury the company has
spent about $647 million on advertising for the iPhone, launched
in 2007, and over $457 million for the two-year-old iPad.
Dressed in a dark suit and yellow tie, Schiller -- who
favors blue jeans and is among a handful of executives reporting
directly to CEO Cook -- said Samsung's copying of Apple's
designs has hurt its sales and disrupted its marketing.
"I was pretty shocked at the appearance of the Galaxy S
phone and the extent it appeared to copy Apple products," he
told the jury, adding that he was even more shocked when he saw
the Galaxy tab. "I thought they've done it again, they're just
going to copy our whole product line."
Justin Denison, Chief Strategy Officer for Samsung
Telecommunications America, took the stand after Forstall,
stressing that the world's largest technology company by sales
was also no slouch when it came to design and marketing.
Denison told the court Samsung spent $1 billion on U.S.
product marketing in 2011 and employs over 1,200 designers.
Before Schiller took the stand, U.S. District Judge Lucy Koh
rejected Apple's request for severe sanctions against Samsung
over the conduct of one of the Korean firm's attorneys, though
she said such conduct risked tainting the jury.
A Samsung statement this week contained links to documents
Koh ruled could not be admitted at trial. Attorney John Quinn,
of Quinn Emanuel Urquhart & Sullivan, acknowledged he authorized
the statement but said it was not designed to sway the jury.
Apple had asked Koh to punish Samsung by ruling that Apple's
phone design patents were valid, and had been infringed. Koh
rejected that request but said there may be a post-trial
"I will not let any theatrics or any sideshows distract us
from what we are here to do," Koh said.
The case in U.S. District Court, Northern District of
California, is Apple Inc v. Samsung Electronics Co Ltd et al,
No. 11-1846.

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  • Yes, The Next iPhone Will Be Announced On September 12

    This past week, the following publications of high repute reported that an unnamed source had confirmed that Apple would introduce a new iPhone on September 12: <a href="http://www.bloomberg.com/news/2012-07-30/apple-said-to-prepare-iphone-redesign-for-sept-12-introduction.html" target="_hplink">Bloomberg</a>, <a href="http://www.reuters.com/article/2012/07/31/us-apple-iphone-idUSBRE86U04A20120731" target="_hplink">Reuters</a>, <a href="http://bits.blogs.nytimes.com/2012/07/30/apple-event-is-set-for-september/" target="_hplink">the <em>New York Times</em></a>, <a href="http://www.theverge.com/2012/7/30/3204810/next-apple-iphone-5-event-date-rumor-september-12" target="_hplink">The Verge</a>, <a href="http://www.loopinsight.com/2012/07/30/apples-rumored-september-12-event/" target="_hplink">The Loop</a>, <a href="http://allthingsd.com/20120730/apple-stocks-up-on-components-for-fall-product-launch/" target="_hplink">AllThingsD</a>, <a href="http://www.imore.com/apple-iphone-5-and-ipad-mini-event-planned-september-12-iphone-5-release-date-september-21" target="_hplink">iMore</a>. If you don't think these "unnamed sources" are just Apple PR representatives directly calling up reporters at favored publications, supplying them with information, and instructing them not to cite Apple as the source of said information -- well, then you won't believe <a href="http://answers.yahoo.com/question/index?qid=20081130223127AAb0lQ5" target="_hplink">what common adjective they left out of the Oxford English Dictionary</a>. Yes, an iPhone event is happening the week of September 9; and yes, Apple is going to introduce a new iPhone; and yes, it's likely that the new phone will be out the following week (iMore, <a href="http://www.imore.com/ipad-3-announcement-march-7-quadcore-4g-lte" target="_hplink">who was first to nail the <em>iPad 3</em> new iPad's release date this past February</a>, says it'll be September 21; based on past precedent, that seems reasonable). So, yeah, September 12, big Apple event, mark your "<a href="http://www.amazon.com/Guns-Camo-2010-Calendar-Reel/dp/0979443172/r?tag=oddee-20" target="_hplink">Sexy Ladies Wearing Camo Holding Guns</a>" calendar. And what, oh what, do we expect to get from this new iPhone (aside from a false sense of fulfillment and superiority over our peers, obviously)? Let's check the latest from the Apple rumor-dome.

  • The Latest On iPhone 5 Specs And Details

    Okay, so: September 21 for the new iPhone (probably). What's it going to look like? Well: All the old rumors are still in play -- the smaller dock connector, the headphone jack on the bottom of the phone, the larger 4.0-inch screen. One website claimed to have gotten its hands on the front glass display and <a href="http://www.youtube.com/watch?v=lb3003GIPk0&feature=player_embedded" target="_hplink">showed it off in a YouTube video</a>. That picture you're looking at is the 'iPhone 5' compared with the iPhone 4s. So, yeah, it would be taller, but about the same width (and we're also expecting it to be thinner, too). <a href="http://www.youtube.com/watch?v=AyOqeDfJueM&feature=player_embedded#!" target="_hplink">There was also this short video</a>, from Macotakara, which purports to show the housing for the next iPhone. <a href="http://www.youtube.com/watch?v=AyOqeDfJueM&feature=player_embedded#!" target="_hplink">You can watch it here</a>, and note the new dock connector, headphone jack, device size, etc.

  • Did A Rogue iPhone 5 Pop Up In Thailand?

    Well, sa wat dii khrap, little (Tha)iPhone! An ex-employee of the tech site Neowin was strolling through the MBK Centre mall in downtown Bangkok when he (or she) got his (or her) hands on what appears to be a next-generation iPhone. Neowin <a href="http://www.neowin.net/news/eyes-on-with-the-iphone-5-sort-of" target="_hplink">has all the photos its former contributor took here</a>, who says that the device in the photos is a -- and I quote -- "<a href="http://www.neowin.net/news/eyes-on-with-the-iphone-5-sort-of" target="_hplink">non functional replica prototype</a>." He would have talked more about the phone, but apparently he was tongue-Thai'ed. Anyway, the gadget in the pictures sure looks like what we've been told the iPhone 5 will look like, though: About the same height, and it's got the smaller dock connector and hole for your headphones on the bottom of the device. Not sure how this iPhone fell off the back of the truck, but next time the factory should Thai it down more securely. (I'm done. Until next time: Sa wat dii khrap!)

  • Reputable iLounge Writer Dumps A Bunch Of Info About iPhone 5, iPad Mini, New iPods

    iLounge's Jeremy Horwitz is one of those Apple insiders, like Ming-Chi Kuo of KGI Securities, that seems to have really solid information when it comes to upcoming Apple releases. This week, he produced two reports, one about the size of that changed dock connector (it could be even smaller than many outlets have reported) and a second <a href="http://www.ilounge.com/index.php/backstage/comments/new-details-on-apples-next-iphone-ipods-ipad-mini-ipad-4th-gen-cases/" target="_hplink">with SEVEN different rumors he's received from his mysterious sources</a>. In short: Horwitz thinks the new iPhone will arrive in mid-September, with two new Apple-made cases; that at the same time, we'll also get an updated iPod Touch (but no iPod Nano); and that two new iPads -- a Mini, and a refreshed iPad with the smaller dock connector -- could be out by the end of the year, too. It is more likely, Horwitz surmises, that the iPad Mini and <em>iPad 4</em> new iPad will be out in early 2013. That is but a taste of what Horwitz offers in his latest; <a href="http://www.ilounge.com/index.php/backstage/comments/new-details-on-apples-next-iphone-ipods-ipad-mini-ipad-4th-gen-cases/" target="_hplink">read his entire report on Apple's future gear here</a>.

  • Could The iPad Mini Be Coming In September, Too?

    Here's the debate of the week: Will Apple release the "iPad Mini" -- an eternally-rumored smaller, 7.85-inch version of its 9.6-inch iPad -- at the same time as the "iPhone 5," or will it hold off for a separate event, either just before Christmas or in early 2013 along with the next iPad? We've heard all of those possibilities in the past week. iMore, who first broke the September 12 announcement date for the next iPhone, reported that Apple would unveil the teensier iPad along with the iPhone on that date; RBC Capital Markets analyst Amit Daryanani <a href="http://www.bgr.com/2012/08/02/ipad-mini-release-date-rumor-rbc/" target="_hplink">agreed in a note to investors this week</a>. Writes Daryanani, as<a href="http://www.bgr.com/2012/08/02/ipad-mini-release-date-rumor-rbc/" target="_hplink"> quoted in Boy Genius Report</a>: <blockquote>[S]upply-chain checks suggests we will have more than just a iPhone-5 launch. While its unclear if the additional product is an iPad refresh or a 'mini iPad', we do believe AAPL may look to leverage the price elasticity of the nascent tablet market by having a ~$300 device. </blockquote> Not everyone is convinced that Apple would introduce the iPad Mini and the iPhone 5 on the same day, though, as <a href="http://www.ilounge.com/index.php/backstage/comments/new-details-on-apples-next-iphone-ipods-ipad-mini-ipad-4th-gen-cases/?utm_source=twitterfeed&utm_medium=twitter" target="_hplink">Horwitz wrote that</a> while Apple's smaller iPad will be ready by November, the company might decide to hold off until 2013 and unveil it along with the <strike>iPad 4</strike> new iPad in February or March. That would, of course, give more time for 7-inch tablets like the Nexus 7 and the Kindle Fire to entrench themselves. Sooner might be smarter, in this case, especially with dozens of Windows 8 tablets likely due this winter, too.

  • Could Your Next iPad Cover Have A Display Of Its Own?

    And finally, we end on a wacky Apple patent: The U.S. Patent Office granted this gem to Apple last week, showing that Apple is working on a Smart Cover for the iPad that would have a small display of its own -- one that could work as a virtual keyboard, for example, or secondary controls for a movie or TV show, or just extra room for whatever's on the tablet's screen. The display could also act as a charger, as it would be lined with solar panels, as seen in the design at left. Patently Apple, which covers Apple patents, <a href="http://www.patentlyapple.com/patently-apple/2012/08/apple-invents-mind-boggling-next-generation-smart-cover-with-multi-touch-flexible-display-solar-panels-built-in-keyboard.html" target="_hplink">has a bunch more at its website</a> on this so-called "interactive Smart Cover." Neat stuff, though probably not super close to being unveiled. That's all for <strong>This Week In Apple Rumors</strong>. Make sure you check back next week, when all of our rumors will be written completely in Thai; and remember, if you can't wait a whole week for your crop of Apple rumors, you can get up-to-the-minute Apple rumors by <a href="http://twitter.com/gilbertjasono" target="_hplink">following me on Twitter right here</a>.