The two men accused of theft of an iPhone 4 prototype last year have pleaded not guilty to the charges. The iPhone 4 in question was left in a bar by Apple employee Robert Gray Powell in Redwood City, California. The two men, Brian Hogan (pictured above) and Robert Sage Wallover will face charges of midemeanors rather than felonies.

At an arraignment here this morning, lawyers for Brian Hogan, the man who allegedly found the prototype in a bar after it was left there by an Apple engineer, and Robert Sage Wallower, who is accused of that charge as well as possessing stolen property, entered their pleas before Superior Court Judge Jonathan Karesh.

Gizmodo subsequently bought the iPhone 4 prototype from the two men and the rest as they say is history. No charges were ever filed against Gizmodo however, under California law, any person that finds lost property and is aware who the owner is likely to be and “appropriates such property for his own use”, is guilty of theft. Also any person who knowingly receives property that has been received illegally can face prison for up to one year.

Anyone have strong feelings one way or the other how this one will end up?

[Cnet]

Steve Jobs, at the D8 Conference, comments on the lost/stolen iPhone HD/iPhone 4G prototype that turned up online. Jobs thinks it's an amazing story - theft, buying stolen property, extortion... he thinks there may be sex in there somewhere!

Jobs got a lot of advice saying he should let it slide, shouldn't go after a journalist because they (allegedly!) bought stolen property and tried to extort Apple. Jobs would rather quit. He considers it a matter of their core values.

Video after the break!

Gizmodo got their hands on that lost iPhone G4 (iPhone HD/iPhone 4G/etc) prototype purportedly lost then found in a San Jose bar and reported on extensively yesterday. They've given it a thorough, geektonic once-over and here's the take away:

• Front-facing camera, bigger back camera with flash
• MicroSIM (like iPad)
• Higher res screen (exact dimensions unknown but could be the rumored 960x640)
• Potential second mic for noise cancellation

• All metal power, mute, and volume buttons

• Flat form-factor that's more squared-off with an aluminum outer border

• Shiny glass/plastic (ceramic?) back
• Slightly smaller and 3 grams beefier than iPhone 3GS
• Battery is 16% bigger, made possible by shrinking everything else

Giz claims they've been playing with the 4th gen iPhone for about a week (?!) and they think its the real deal. They have some videos up and tons more info as well so check out the link up top for more and let us know what you think. This looks like an honest-to-Jobs unfinished 4th gen iPhone -- do you like it?

Look what we have here -- some great news for AT&T as it snags first place in Gizmodo's 12 city 3G data test. (Just like their latest commercial claims.) The 12 cities are as follows: Maui, Atlanta, Chicago, Denver, Las Vegas, Los Angeles, New York, Phoenix, Portland, Seattle, San Francisco, and Tampa.

When it comes to being number 1, AT&T hasn't always been this lucky (remember a little something called customer satisfaction?) Perhaps this is a sign of good things to come and maybe, just maybe, some of that anger and hatred AT&T has gotten in the past will turn into a positive vibe.

"It was measurably faster, however, download-wise, in 6 of the 12 markets where we tested, and held a significantly higher national average than the other carriers. Only Verizon came close, winning 4 of the 12 markets. For downloads, AT&T and Verizon came in first or second in nine markets, and in whatever location we tested, both AT&T and Verizon 3G were consistently present. If you're wondering about upload speeds, AT&T swept the contest, winning 12 for 12."

Personally, I've tested speeds with my AT&T and Verizon lines respectively and get the same results here in Chicago. AT&T's 3G data speeds always come out on top in both uploading and downloading.

Love AT&T or hate them, these results are somewhat impressive.

[Via Gizmodo]

Gizmodo has an interesting post up on Apple's iPhone App Store, and how it might be headed straight down the road to oblivion. Their basic take is that downward price pressure, users conditioned by iTunes to expect $1 songs and $2 TV shows, Apple recommending (and wanting) cheaper prices, high development costs with low chances for visibility, all combine to put iPhone (and iPod touch) development on the endangered species list. Further, yesterday's announcement of in-app purchase for free apps, they argue, makes things like the Top Lists nebulous going forward.

And it doesn't just apply to the iPhone:

don't forget, Palm and Android fans, this App Store Effect sends ripples well beyond the App Store. Customers expect to see functionally identical apps priced the same way across platforms, because to us, that's what makes sense. Can devs really afford to port an app to the webOS to sell to the tens of thousands of Pre owners, when they're expected to tag it with iPhone prices, calculated for a base of millions? Whether by Apple's design or totally by accident, everyone who doesn't own an iPhone will suffer for it.

See their chart, above, showing the pricing differences between platforms. Some would argue the market can correct for anything. If premium developers leave in frustration, users will tire of CrApps, a premium developer will sense the voice, fill it, make a killing, and other premium developers will flock back. Others believe Apple controls the market and so it's their job to make it as good a market for developers -- and ultimately users -- as possible through proper policies and procedures (BlackBerry, for example, won't allow paid apps under $2.99 into the App World).

We've all discussed this a lot in the past, and no doubt will continue to discuss it moving forward, but give Giz's article a read and let us know what you think.

Apple might be preparing a 10.7" multi-touch iTablet with 720p resolution, running the iPhone OS, for announcement in January and release in May/June 2010. That's just one of the rumors dropped by iLounge this morning, from a source they say was accurate about the most recent iPod nano, iPhone, and Chinese iPhone stories.

Like the iPhone and the iPod touch, iLounge's source claims both a 3G and non-3G version will be available, so users can weigh always-on connectivity vs. another monthly telco bill.

Apple is no stranger to big product announcements in January, but since exiting Macworld, they're also now free to set their own schedule. Possible delays? Odds of it receiving the official "b'okay" from Steve Jobs in its current form are said to be 80% (after it already being nixed at 7" for being "too small"). That's good, but far from certain.

Also far from certain, but certainly interesting is Microsoft's equal and opposite tablet concept -- the Courier, which focuses not on media but on journaling. Gizmodo has another video up. It reminds us of those awesome, future-filled Bill Gates keynotes from CES. Most of what Gates demoed hasn't made it to market, however. Hopefully the Courier will fare better.

People are used to phones, they're used to MP3 players, laptops, desktops, even set top boxes. A decade later, there's no indication of tablets breaking through into the mainstream, so Apple, Microsoft, and everyone else has their work cut out for them.

We'll see if the iTablet can tell a compelling enough story, and offer a feature set that sells.

Gizmodo honcho Brian Lam claims to have received a cryptic call with nebulous details on the much-rumored Apple iTablet, shedding light and casting in shadow at the same time. Highlights:

• Lam believes the source is in a position to know about the iTablet
• The source implies he or she has sat in meetings about the device
• 10 inch screen
• Looks just like a big iPhone (though that may change)
• 2 versions: with webcam and without (for education?)
• $700 - $900 price tag
• May function as secondary touchpad/screen for Macs
• OS is still big question mark
• Super-secret Lam-Googled product code name that "made sense"

So, do we know more now... or less?

AT&T and other carriers subsidize the upfront cost of the iPhone and other smartphones and make up the difference via guaranteed long term contracts/commitments. That's their business model, but it means they can't and won't give repeated subsidies until you've finished the associated contract terms. With many iPhone 3G owners -- still under contract -- eyeing the iPhone 3G S, and the non-subsidized price it brings with it, a fair amount of anger has been plasma-cannoned in AT&T's monstrous direction.

Gizmodo's Jesus Diaz, however, gives a nasty spoonful of reality medicine to those of us who bought heavily subsidized iPhones last year, and are upset we can't get the same subsidy again this year:

The fact is that the $199/$299 price tag for the iPhone is the result of AT&T's—or any other carrier, since the situation is the same all around the world—subsidy. Without subsidy—and tying you to a new two year contract—the iPhone is not different from something like the Nokia N97, which is $700 unlocked. Or the contract-free, unsubsidized iPhone 3G itself: The iPhone 3G costs $770 and $877 unlocked for the 8 and 16GB versions.

He goes on to kick the telcos heartily in their nether-regions as well, pointing out their exorbitant monthly charges, but takes issue with the sense of "entitlement" in modern consumer culture.

If you don't like it? His advice is to not buy the new iPhone 3G S and wait until next year when you can get a subsidy.

(I'm locked into a 3 year contract which currently has an early termination fee of ~$500, so I feel that pain...)

And in the mean time?

do the rest of the world a favor and stop whining about what you are entitled to. We don't live in your pretty me me me ME world.

NB: Delayed MMS deployment and lack of anything approaching information on tethering, however -- totally AT&T hate worthy...

[Via Daring Fireball]

We can't use the picture Gizmodo used to headline their post, so we're retreating beneath the wholesome banner of Megan Fox for this one (blink blink). Suffice it to say, mixing and matching from their Gawker Media heritage, Gizmodo asks the adult-content question:

Can the new OS make the iPhone the best sexual toy ever?

Exploring the new iPhone SDK's rumble API, along with peer-to-peer, voice, proximity sensor, and other freshly unveiled functionality, they get as close to porny with it as possible before retreating to the scholarly comfort of Dr. Debby Herbenick, who inspired by one of their previous posts, offers them her iPhone sex guide (also NSFW) in return.

It's doubtful what exactly would make it through the App Store approval process, but hey, we're sure iBackMassagerWeSwear is already in the pipeline, right?

Gizmodo is running a series of posts highlighting the evolution of various technologies in honor of the birthday of Charles Darwin, who many years ago realized one thing killing another thing wasn't mean, but was the reason we all now have fast cars and hot tubs (or something like that, I texted my way through bio).

Coming as no surprise to any regular reader of this book, the chart Gizmodo chose clearly shows the original mega-cell phones giving way to Moto's StarTac, the PalmOS Treo, the blue BlackBerry, and finally the new king of jungle, the iPhone 3G.

How utterly appropriate.

Happy birthday Darwin, and sorry frenemies, but like dinosaurs and Jurassic Park movies, and mullets, nature gave you your shot, and is now selecting you for extinction.

We should start a new "Gizmodo iPhone Concept Art" category, because it seems like Jesus Diaz is throwing up one of these a week, each equal parts smart and silly in their own way. This week's version doesn't light my design regions on fire, but the idea of built in video iChat, compatible with desktops -- even with the Google Maps/CoreLocation chrome tossed in -- is very much "me want".

What do you think? I love the MacBook Air look, but in an iPhone? And is Mobile iChat definitely a must-drool feature?

Last time Gizmodo gave us their version of an iPhone iSlider form factor. We. Didn't. Want. It. Now they're back with a compromise: a modular iPhone that could accept, among other things, a snap-on keyboard iClamshell.

Eh. Still doesn't strike us as something elegant enough for Apple to consider releasing, though as a 3rd party accessory (if they can get both SDK and dock licensing in order), it would likely make many people happy. (Still not us, though, we loves the multi-touch and truly, deeply, strongly believe the era of on-device hardware keyboards is over).

It's your opinions that matter most, however, so let us know if this is something you'd like to see, first party or third, and what form you'd most like to see it in.

Form-factor-palooza continues! During the iPhone Round Robin, our best frenemy CrackBerry Kevin spoke extensively about his desire for an iPhone Pro:

know a big part of the iPhone philosophy is to keep it simple, but sometimes it doesn't hurt to be a little more complicated, and luckily, tagging a product with "Pro" at the end covers the reduced intuitiveness of a professional device. At the bottom of the iPhone is a single home button. How about we toss a little Apple key to the left of it? Maybe when you hit that button you could get a few basic functions to pop up on the display... maybe like copy and paste? While we're at it, let's add a little back button to the right of that home key. The lack of a back key on the iPhone is one of my BIGGEST irks of all - you have to learn within each app the correct way to tap "back" to a previous menu (time waster). The most unified/simplistic means of getting back is via a back button. I know this is something that even iPhone fans (Rene, I'm looking at you) would like to see. Maybe add the ability to edit office docs natively - it's not something one typically does on a smartphone all that often (more likely to view than to edit), but sometimes "Pro" users do have to make changes on the go. And last but not least, give it a flashing red light. In other words, make it more like a BlackBerry!

Seems he's not alone, though Gizmodo certainly takes it to another level entirely: enter the slider! (Or re-enter, as we heard rumors of the iSlider back in July...) It's not TiPb's cup of tea. We're still predicting an iPhone HD, but sans-slider. We highly doubt it's something Apple would ever consider either, but we're sure it would appeal to at least some of the HTC Pro/G1 crowd.

What do you think? Does the iPhone need it a big @$$ keyboard for 2009?

UPDATED AGAIN: Pastebud founder, Jed Schmidt, via the comments, directs us back to Technologizer (see link below) for his update on what was happening:

I’ve updated this issue over at Get Satisfaction[1], but let me just summarize what exactly was going wrong: you were inadvertently forwarding your emails not to your secret pastebud address, but to the address set as the from address for these emails, which was noreply@pastebud.com.

This happened to other folks too; instead of sending email to secret-random-string@pastebud.com, they were sending to noreply@pastebud.com. And everyone who was doing this ended up sharing the same clipboard.

Anyway, I just wanted to let you know that we’ve fixed it, and the changed will be live by the morning.

PREVIOUS UPDATE/PRIVACY WARNING: Technologizer is showing that they're getting other people's clipboard data in their paste results, including complete emails:

Pastebud’s site addresses security, and says it’s “safe enough” for general use. Based on my experience so far, I think not! But I don’t know if I’m running into some bizarre quirk or doing something wrong, or if this is happening to everyone who’s trying Pastebud as I speak. I just know that I’ve come to the conclusion that using a Web service as a substitute for a feature that should be in a device’s OS may not be such a great idea after all.

This might be a temporary glitch on the server side, but it's a very disturbing glitch and one that might just be a deal-breaker for the security and privacy concerned.

Original post after the break...

We mentioned Pastebud yesterday, the bookmarklet based cut/copy paste "solution" that's trying to plug one of the longest and most glaring omission in the iPhone feature set. Well, Gizmodo and fellow Gawker-site Lifehacker has given it the hands on look see, and what did they find? Giz says:

Pasting text back into another web form via the PASTE bookmarklet is easy—after tapping it, a green box labeled PASTE HERE is overlaid onto any open form field. Tapping that drops in your clipboard's contents, preserving any HTML that was there if the form supports it. But, of course, there are some drawbacks. While pasting to and from different Safari windows and emails covers a lot of one's copying and pasting needs, it's not anywhere close to the convenience a system-wide solution would bring.

Lifehacker weighs in with:

One small issue, though, at least for those who don't pay $5 to Pastebud—it inserts a little "Pasted from my iPhone!" and promotion link in every paste. You can delete it, of course, but it's there every time... And once your text arrives, you get a little pop-up box, asking you to upgrade for $5 to "make it even more convenient"

Need more incentive to cough up the $5? LH says SSL, destroy-on-paste, and other security concerns will be soon addressed in the paid version.

Enough for now? Still not good enough? Waiting on a built-in solution from Apple? Or forget Apple, gimme whatcha got?

Earlier this month, TiPb threw it's hat in the ring of next generation handset speculation by predicting Apple would announce an iPhone HD in 2009. It just made sense to us, and apparently it's beginning to make sense to others as well.

What happened? New York Times writer John Markoff dropped a rumor bomb:

The [unnamed search engine] company spotted Web visits from an unannounced Apple product with a display somewhere between an iPhone and a MacBook. Is it the iPhone 3.0 or the NetMac 1.0?

Jesus Diaz over at Gizmodo seems to be thinking what we're thinking as well:

here in Gizmodo we are thinking about an iPhone HD with an updated 800 x 480 pixel display, probably coming in 2009.

So, is this just another wunderkind spoofing his or her web browser for lulz and chaos? Or is Steve Jobs already carrying around the prototype iPhone HD in his pocket, practicing the Keynote Boom! for WWDC 2009?

During Tuesday's "Spotlight on Notebooks" Keynote, Steve Jobs wasn't the only jean-and-dark-shirt uniformed Apple exec on stage. COO Time Cook took an unusual turn, discussing Mac business. SVP of Design, Jonathan Ive, an even more unusual presence in front of the audience, introduced the new "brick" unibody concept. And Marketing VP Phil Schiller -- who's no stranger to Keynotes -- took part in the Q&A at the end.

It wasn't all Steve, all the time.

Because of this, Gizmodo's Jesus Diaz says Steve may be thinking of leaving in the near future, to live out his days on the beach, content that he's shown investors and customers that Team Apple will Boom! along quite nicely without him, much as Microsoft is... er... doing without Gates in the daily driver's seat:

Steve Jobs is leaving Apple. Not tomorrow, but probably very soon. That's why he started to say good bye today, doing something more important than just presenting new MacBooks, MacBook Pros, and an updated MacBook Air. Today's event was a play in which he clearly told everyone that the company is more than himself. Since the very first minute, when he immediately sat down to let Tim Cook talk, he was saying: "Hey, look, Apple is more than Steve. These are The Guys, the Goodfellas, the A-Team. They share the same vision I have. And they are going to push the company forward when I change my office chair for a hammock and caipirinhas on my private beach in Hawaii".

Daring Fireball's John Gruber, however, says Steve isn't going anywhere. He points out that Jobs has shared the stage before, often letting adepts take the more highly specialized presentations, like introducing Leopard at WWDC. Gruber says:

But so long as he’s healthy, working at Apple is exactly the thing Jobs wants to do. He’s consumed by his work, and I think it’s only in the last two or three years that Apple has gotten to the point where Jobs feels he has a decent set of crayons at his disposal. In Jobs’s mind, the iPhone is only the beginning of what a truly flourishing Apple can produce. Why would he leave now? “A hammock and caipirinhas on a private beach” would be living hell for Steve Jobs.

We're with Gruber on this one. While Diaz is saying what many of us were likely thinking during the show, Jobs doesn't strike us as the casual CEO. His investment in Apple is lifelong. He's not Woz, he's the Wizard, and they'll have to pry his hand off Apple's perfectly balanced, aluminum and gloss black steering wheel if that's ever going to change.

When Gizmodo honcho Brian Lam found out via Twitter that one of his readers was experiencing a brutal 8-hour iPhone sync, he did what any EiC worth his postings would do: secured time-lapse video! To put 8 painful hours fully into perspective:

That's a full night of sleep. That's a full day of high school. That's longer than it takes to fly cross country, or drive from SF to Los Angeles. After seeing this video, I stopped complaining and tried to figure out what caused Brandon's problem with him.

Heck, it's a wait in an launch day Apple Store line! They tried syncing via a MacBook Air and an iMac, and even switched out cables, but the 74 App sync just wouldn't -- indeed couldn't! -- be tamed.

Atypical? For certain. Incredible? Pretty much. If it were us? We'd probably nuke the thing, bury it upside down, cover it in concrete, and salt the earth -- then politely ask Steve Jobs to start over...

Luckily, my longest sync has probably never topped 5 minutes. What about you? What's your longest sync been to date?

Last week Apple and Infineon were getting all the heat for shoddy 3G performance. Now AT&T is getting its share of the blame with a dizzying array of combinations. First it was Wired's fairly damning survey and the Swedish antenna tests that pointed further fingers at the network, and now Gizmodo head-honcho Brian Lam has had the chance to chat with AT&T CTO John Donovan:

I asked Donovan if caution was the overriding strategy behind waiting to match Sprint's initial 3G rollout, he replied, "I'd like to say we're deliberate. " He added that initially meeting the voice quality and data rates of Sprint's 3G network would have been both technically and financially impossible, despite the customer benefit. (One only needs to look at Sprint's financial weakness now to appreciate the wisdom of his point.) He also pointed out that by waiting, they got to leapfrog the limitations of Sprint's EVDO networks, referring to the extended data rates their network will eventually run at, at a better value. "The most astute thing you can do is be as late as possible and as fast as possible. Because it's going to cost you more if you do it too early, and if you do it too late, you don't get the features you want."

Well bully for AT&T, but where exactly does that leave frustrated customers with dodgy 3G reception? According to Donovan, they have a multipart plan to make sure AT&T really, truly, eventually delivers on the "more bars in more places" promise.

Lam likes having them on the record, so they can be held accountable. We think customers would prefer having them simply get the job done, so that dead zones, dropped calls, downgraded connections, and basically everything else that's currently broken about AT&T's 3G network is fixed and fast.

Ouch! Was that the sound of Crackberry Kevin Hulking Up for another NERD FIGHT, or RIM CEO Mike Lazeridis smashing the desks over at R&D?

Seems like Gizmodo's Jesus Diaz has just put Apple's new MobileMe push Email, Contacts, and Calendars service through it's iPhone paces and their verdict?

BlackBerry is dead, dead, dead. Dead.

And this from a self-confessed former Crackberrian, no less, using a Spanish SIM, on a UK Network, over EDGE! Along with the better, faster, and more powerful OS, Diaz credits the flawless App Store, media, and new enterprise and consumer features as making the Blackberry look "like a brick".

Yowzer, they say there's no such thing as bad press but... Yowzer...

As to MobileMe itself?

Not a single glitch—the thing just worked almost instantly. Knowing that Apple is using Sun Java Messaging Servers, probably paired with Synchronica or Consilient's over-the-air synchronization modules, I'm not surprised. It feels like they have put together a rock-solid operation.

Sign me up! (D'oh, I'm already legacy'd in!)

Om Malik says GPS on the iPhone is locked and loaded:

[T]here is one thing that’s for sure: The new iPhone has Global Positioning System (GPS) built into it, thanks to legal requirements put in place by the FCC.

The GigaOmster further says that new-to-the-space-space Broadcom has nailed the contract, which is great for them but panic-inducing for the stand-alone GPS market. (We know Google sees positively HUGE maps usage from the GPS-less iPhone already, so that makes the kind of sense that does.)

But Brian Lam of Gizmodo thinks the whole GPS on the iPhone thing is pretty poorly thought out:

No thanks. Don't need it. I'm fine with the current location technology. It works for walking and that's all I need it for.

Lam's reasons? Current cell and WiFi location services are much quicker than GPS, they better suit walking and the iPhone is less useful while driving anyway, GPS kills battery life dead, and GPS chips would significantly fatten up the iPhone.

Personally, both 3G and GPS are still bleeding edge tech when it comes to realistic day-to-day usage in everywhere, USA when not hooked up to a generator, so while nice to have as an option, and fetishized by the tech media and the blogphere commentorati, neither will have the impact on my life that the 2.0 software update likely will. It just ain't mainstream enough for me to be melodramatic about yet.

What do you think?

[More on the Broadcom GPS story, with thanks to reader southerntraveltourism]