By Businessweek.com

Apple’s  iPad tablet computer costs as little as $259.60 to build, according to analysis by the research firm iSuppli.

Materials for the iPad, which went on sale Apr. 3, include a touchscreen display that costs $95 and a $26.80 processor designed by Apple and  manufactured by Samsung Electronics, according to El Segundo (Calif.)-based iSuppli.

Apple announced the iPad, which users can hold in their hands for reading and watching videos, on Jan. 27. ISuppli’s analysis means that the components of the lowest-priced iPad, which includes 16 GB of memory, constitute 52% of its $499 retail price, on par with other Apple products including the iPhone 3GS.

A midpriced 32 GB version of the iPad that sells for $599 contains $289.10 worth of materials. A high-end 64 GB version, which retails for $699, contains components that cost $348.10, according to iSuppli.

Much of the iPad’s component costs went toward making the device appealing to use, says iSuppli principal analyst Andrew Rassweiler, who supervised the “teardown” analysis of the product. More than 40% of the iPad’s costs are devoted to powering its touchscreen display and other components of the computer’s user interface—”what you see with your eyes and what you feel with your fingers,” he says. The distinctive aluminum casing on the back of the device contributed about $10.50 to the cost of materials.

Apple spokeswoman Natalie Harrison declined to comment on iSuppli’s findings.

More Silicon Chips Than Expected

Research firms conduct so-called teardown analysis of consumer electronics to determine component prices and vendors, and to estimate profit margins. The estimates don’t include costs for intangible items such as software development, advertising, patent licensing, or shipping. In February, iSuppli had estimated that the least expensive iPad would carry a $219.35 cost of materials.

Once it took one apart, iSuppli found more silicon chips than it had expected powering interactions with the iPad’s 9.7-inch screen. Apple uses three chips to control the iPad’s touchscreen, for example. “Because of the sheer scale of this device, we’re seeing more here than we expected to,” says Rassweiler.

Over time, Apple may have leeway to combine many of the iPad’s electronic components, or integrate them into the display, Rassweiler says. “We’ll see a lot less silicon required to make them work,” he says.

The most expensive component in the iPad is its touch-sensitive, custom-manufactured screen. South Korea-based LG Display, Samsung, and Japan’s Epson supply the liquid-crystal display (LCD), according to iSuppli. Taiwan-based Wintek makes the glass overlay that detects the touch of a user’s fingertips. The screen’s special design makes it about twice as expensive as the screens used in comparably sized netbook computers, according to Rassweiler.

LG spokesman John Taylor did not return a call seeking comment. Wintek spokesman James Chen could not immediately be reached for comment. An Epson spokesman could not immediately be reached for comment. Chris Goodhart, a spokeswoman for Samsung, declined to comment.

Flash Memory Chips

Flash memory chips were also a significant portion of the iPad’s costs. The chips, obtained from various suppliers including Samsung, account for $29.50 in costs on the 16 GB model, $59 on the 32 GB model, and $118 on the 64 GB model, according to Rassweiler.

Apple designed the main chip in the iPad, known as the A4. South Korean chipmaker Samsung Electronics built the chip for Apple and also supplied a memory chip attached to it for a combined cost of $26.80, a difference of $9.80 over the prior estimate of $17. “We believe that this chip was designed by P.A. Semi,” Rassweiler says, referring to the chip design company Apple acquired in 2008 for $278 million.

Other chips in the iPad also proved more costly and more numerous than iSuppli had originally estimated. Broadcom supplied an $8.05 chip that handles Bluetooth and Wi-Fi wireless data connections, and two additional chips used to control the touchscreen, which cost a combined $3.70. Texas Instruments supplied a $1.80 chip used to help control the iPad’s touchscreen. Ciruss Logic supplied an audio chip that costs $1.20.

Broadcom spokesman Bill Blanning did not return messages seeking comment. Kimberly Morgan, a spokeswoman for Texas Instruments, declined to comment. Bill Schnell, a spokesman for Cirrus Logic, also declined to comment.

1- Where’s the nearest ATM that won’t cost an arm and a leg ?

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Leading online music shop hits another major milestone with the sale of the 10 billionth song, offering one lucky customer a prize for making the right purchase at the right time.

This news is from Kenneth Corbin from internetnews.com

Apple’s popular online music store iTunes has hit a major milestone, with the 10 billionth song downloaded sometime on Wednesday.

The landmark download was Johnny Cash’s “Guess Things Happen That Way,” Apple (NASDAQ: AAPL) said.

The 10 billion mark comes a little more than a year and a half after iTunes sold its 5 billionth song.

Louie Sulcer of Woodstock, Ga., stands to receive a $10,000 gift card to the iTunes store for downloading he 10 billionth song, Apple said.

“We’re grateful to all of our customers for helping us reach this amazing milestone,” Apple Vice President Eddy Cue said in a statement. “We’re proud that iTunes has become the number one music retailer in the world, and selling 10 billion songs is truly staggering.”

As part of its 10 billion countdown, Apple ranked the most popular songs of the iTunes era. The most downloaded song is the Black Eyed Peas’ “I Gotta Feeing.” The group also took the No. 3 spot on the list with “Boom Boom Pow.” Checking in at No. 2 on the list was Lady GaGa’s “Poker Face,” with Jason Mraz’s “I’m Yours” and Coldplay’s “Viva la Vida” taking the fourth and fifth spots, respectively.

Apple debuted its online music shop seven years ago, selling 1 million downloads in its first week. In the time since, iTunes has galloped to the top of the digital music realm, outselling by a large margin competitors such as Amazon (NASDAQ: AMZN) and Walmart.com (NYSE: WMT).

In the meantime, iTunes has been looking to expand its offerings beyond online music. The site has reportedly been in talks with entertainment studios to roll out a TV service based on a $30 monthly subscription model.

Apple began offering Web TV content in 2005 through a deal with Disney-ABC. TV shows are currently available on iTunes for $2.99, and Apple also offers season-long subscription passes to certain programming.

Apple iPad Adds to Pressure on AT&T

As AT&T prepares to provide high-speed connections for the new tablet-style computer, it’s redoubling efforts to make its network more reliable

By Cliff Edwards and Olga Kharif from BuisnessWeek

As Apple Chief Executive Steve Jobs unveiled the tablet-style iPad computer Jan. 27, many of his pronouncements were greeted with cheers. In contrast, his revelation that AT&T (T) would be the exclusive U.S. provider of high-speed wireless connections for the Internet-capable device was met with audible sighs.

The reaction reflects dismay with the performance of AT&T’s wireless network and concern that adding the iPad will only add to the strain. AT&T is the exclusive U.S. carrier of Apple’s iPhone, a device that already places heavy bandwidth demands on AT&T’s equipment. Even executives of the phone company concede the network isn’t up to snuff in New York and San Francisco. “Consumers may expect more from their iPad than the network can deliver at this point,” says Shira Levine, an analyst with Infonetics, a telecommunications market research firm. “There’s potential for more consumer dissatisfaction.”

If Cupertino (Calif.)-based Apple (AAPL) has its way, iPad users will consume a lot of bandwidth-hogging media. The iPad lets users purchase and download books, movies, and other large files. Marketers may also find ways to deliver multimedia ads and other content wirelessly to the device. If the iPad is successful, “the volume of data would be the same the iPhone consumes plus another 50%,” says Mike Manzo, chief marketing officer at Openet, a maker of software that helps carriers manage network traffic.

Only 25% of iPad Buyers May Get Data Plans

Not everyone who buys an iPad will use AT&T’s network. Three iPad models that work with AT&T’s 3G wireless-phone network will go on sale in April for $629 to $829, with an additional $14.99 or $29.99 a month for a service plan. In all, Apple may sell 3 million to 4 million iPads in the first year, and 8 million in 2011, says Gene Munster, an analyst at Piper Jaffray (PJC) in Minneapolis. As few as one-quarter of new iPad purchasers will add a wireless data plan, predicts wireless-industry consultant Chetan Sharma.

Many iPad users will instead access the Internet using Wi-Fi networks in homes and other locations, AT&T executives said on a Jan. 28 conference call discussing the company’s fourth-quarter results. Three iPad models will be Wi-Fi only. The iPad “will be used a substantial amount of time in a Wi-Fi environment,” AT&T Chief Financial Officer Richard Lindner said on the call. While the iPad’s 1.5-pound frame makes it easy to carry from place to place, the device’s 9.7-inch screen makes it too big to fit into a pocket.

AT&T’s data-plan pricing may go part of the way toward alleviating network strains. Users who pay $29.99 a month can consume unlimited data. That plan “certainly could tax an already taxed network,” says Gerard Hallaren, director of research at TownHall Investment. Those who opt for the cheaper plan may deliberately consume less data for fear of exceeding caps. Because they’ve spent less, they’ll also feel less obligated to use big allotments.

AT&T to Spend $2 Billion on Upgrades

For those who opt for AT&T’s 3G service plans, the company says it’s working on upgrades designed to reduce the number of dropped calls and poor connections. AT&T will spend about $2 billion to improve its ability to deliver wireless calls, John Stankey, CEO of AT&T Operations, said during the Jan. 28 conference call. AT&T is adding twice as much capacity to its network in 2010 as it did last year, he said. The company is also adding 2,000 cell sites, which play a role in delivering wireless calls, and says it will extend 3G coverage by 400,000 square miles through the acquisition of certain wireless assets.

AT&T spent $21 billion improving its network between 2006 and September 2009, Ralph de la Vega, president of AT&T’s wireless division, told attendees of the Consumer Electronics Show in Las Vegas in early January.

Network improvement plans by AT&T have met with Apple’s approval, Tim Cook, Apple’s chief operating officer, said during a Jan. 25 conference call. “We have personally reviewed these plans, and we have very high confidence that they will make significant progress toward fixing them,” Cook said.

Now, AT&T will need to get the message across to users.

Mozilla Finds Malware in Firefox Add-Ons

Mozilla’s open source browser is the latest application targeted by malware purveyors. This time, hackers have stashed away a Trojan in a couple add-ons posted on addons.mozilla.org. eSecurity Planet has the goods on which add-ons users need to avoid and what people already affected can do to rid themselves of the malware.

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As it’s grown in popularity, the open source Mozilla Firefox Web browser has fostered a broad ecosystem of add-ons that expand its functionality. As it turns out, though, that same ecosystem can also potentially expose users to risk.

Mozilla today disclosed that a pair of add-ons hosted on its addons.mozilla.org (AMO) site included Trojans. As a result, if a Windows user installed the add-ons, they would be infected by malware that could potentially steal their information.

The two infected add-ons are Version 4.0 of Sothink Web Video Downloader and all versions of Master Filer download manager.

“This vulnerability is known to affect Firefox on Windows only, if either Master Filer or Version 4.0 of Sothink Web Video Downloader are installed,” Mozilla wrote in a blog post confirming the security issue.

Mozilla recommends that potentially impacted Windows users—who may number in the thousands—run an antivirus program since simply uninstalling the affected add-ons does not remove the Trojans.

According to Mozilla, Master Filer has been downloaded 600 times while the Sothink Web Video Downloader has been downloaded 4,000 times. Mozilla removed Master Filer on Jan. 25, 2010 and Sothink Web Video Downloader on Feb. 2, 2010.

Read the full story at eSecurity Planet:
Mozilla Confirms Security Threat From Malicious Firefox Add Ons

The iPad Threat to PCs

Apple’s new computer could erode sales of netbooks and tablet devices sold by PC makers, analysts say

By Arik Hesseldahl from businesweek

Apple’s (AAPL) new iPad, a lightweight device that browses the Web and delivers media, may serve as an alternative to netbooks and pose a threat to PC makers.

While the iPad is not a full-fledged PC, it’s capable of handling many of the tasks consumers deem important in netbooks, stripped-down notebooks that have surged in popularity in recent years. In a lightweight package, the iPad provides access to e-mail, the Internet, and digital media such as electronic books. The cheapest version of the iPad will sell for $499, compared with about $400 or less for many kinds of netbooks. “People who are looking at netbooks will also take a very serious look at the iPad,” says Charles Smulders of market research firm Gartner (IT).

That could spell trouble for computer makers such as Hewlett-Packard (HPQ), Acer (2353:TT), and Dell (DELL), which relied on netbooks for growth in recent quarters as consumers and companies delayed purchases of more expensive machines. The number of PCs shipped rose 15.2% in the fourth quarter, compared with a decline of 0.4% a year earlier, according to research firm IDC. “A substantial portion” of that growth came from the sales of netbooks, says IDC analyst David Daoud.

Silver Lining: Margin Squeeze May End

If there’s a silver lining in the iPad’s introduction, it’s that PC makers may need to boost their reliance on higher-priced devices, analysts say. Sales of netbooks can put pressure on average selling prices that if unchecked can lead to narrower margins. “The netbook market has created a race to zero margins,” Forrester (FORR) analyst James McQuivey says. “It has created a market where higher-priced, higher-margin notebooks have a harder time selling because consumers think they can get essentially the same experience in a netbook with a lower price.”

So if netbook growth slows, PC vendors may need to refocus their efforts on selling higher-margin traditional notebooks, says Daoud of IDC. “It will bring some needed sanity and new alternatives for the PC industry,” Daoud says. “For so long, all they could do was drive down prices. Now they can think outside the box and bring out devices that will compete with Apple at prices they can live with.”

Sumit Agnihotry, a vice-president at PC maker Acer, which sells several netbooks, says the smaller computers will probably keep their place in the PC industry. “The industry has proven that the netbook is an important category,” he says. “We think they’re here to stay.” Still he says Acer is working on a tablet product that will compete head-to-head with Apple’s iPad. It’s due to be announced in the second half of 2010.

iPad Will Tempt PC Tablet Users

Apple’s iPad may also make a dent in sales of existing tablet-style computers, a category that has been available for the better part of a decade but failed to catch on with consumers. Only about 1.03 million tablets were sold in 2009, down from 1.3 million in 2008, according to Gartner. Tablets are generally aimed at businesses that have a specific need for a PC that accepts input from a pen-shaped stylus. Though the iPad doesn’t use a stylus, there’s a good chance that its thin, lightweight body could lure some business users away from their tablets.

Harry Labana is chief technology officer of Citrix Systems (CTXS), which makes software that gives mobile devices, including Apple’s iPhone, the ability to access software and files on other computers remotely. He sees opportunity for sales of the iPad in areas such as medicine. For example, doctors who want to view patient records or X-ray images can do so from a device like the iPad that connects remotely to another computer where patient files are stored. “Not everyone who spends their work day walking around needs a full-power laptop or a PC to read certain data or to send mail,” he says.

Hewlett-Packard introduced a tablet it calls the Slate at the Consumer Electronics Show in Las Vegas in early January. “The slate category is exciting and will be the focus of multiple efforts on several platforms in the industry,” says HP spokeswoman Marlene Somsak. “We’ll have a number of products in this space this year and beyond.” She declined t comment specifically on the iPad. A spokeswoman for Dell declined to comment.

Apple says it expects to start shipping the iPad by the end of March. The company may sell 3 million to 4 million in the first 12 months it’s available, says Gene Munster, an analyst at Piper Jaffray (PJC). It may sell 8 million iPads in 2011, he says