Lawyers filed a class action lawsuit against Apple and AT&T seeking $1.2 billion in damages because the iPhone is locked to AT&T's wireless network. The suit also notes that Apple will not allow unauthorized applications on the iPhone. Filed on behalf of Paul Holman in the State of Washington and Lucy Rivello in California, the lawsuit explains that in the United States the SIM chip is locked to the wireless carrier, not the hardware device. Damian Fernadez, the attorney who filed the state suit explains in court documents what Apple is accused of:

Apple punished consumers for exercising their rights to unlock their iPhones. Apple issued a software update that 'bricked' or otherwise caused iPhone malfunctions for consumers who unlocked their phones and installed the update. Apple's unlawful trust with AT&T substantially lessens competition and tends to create a monopoly in trade and commerce throughout the entire United States.

Apple and AT&T both declined to comment on the story.

Apple Inc. has halted shipments of MagSafe power adapters for its MacBook Pro notebook line as a result of quality design issues and is presently working on a fix. Apple began pulling inventory of the 85W power supplies from its retail stores a few weeks ago. Apple also discontinued shipments to third party retailers ahead of "redesigned" models that are expected to ship in about 2 to 3 weeks. Reports claim that the thermal insulation of the adapter cords has a tendency to heat up and fray near both the power brick and the MagSafe connector, creating a potentially serious hazard. Another issue is a tendency for the tiny pins inside the MagSafe connector to improperly spring back into place, resulting in a faulty connection between the MagSafe connector and the MacBook Pro's built-in power adapter port. And lastly, some adapters are showing signs of a defect where the LED indicator light on the MagSafe connecter will intermittently shut off even though the adapter continues to charge the MacBook Pro.

Second anti-iPhone lawsuit in two weeks alleges that Apple violated antitrust laws. A California man filed a lawsuit accusing Apple Inc. of violating antitrust law because its iPhone forces buyers to use AT&T Inc. as their wireless carrier and the company "bricked" phones that had been modified to call over other networks. Timothy Smith filed the lawsuit Friday with a California state court in San Jose seeking class-action status. The suit demands that Apple be barred from selling locked iPhones and that it be required to provide warranty service for owners of unlocked devices. The lawsuit also asks for unspecified monetary damages. In the lawsuit Smith alleges that Apple violated several California antitrust statutes when it tied the smart phone to AT&T and prohibited customers from using other carriers. Click here to read the full story.

With Firmware v1.1.1, Apple aimed to do more than prevent users from accessing other networks: they were trying to fix critical security holes. While their efforts did work temporarily, hackers recently are proclaiming that they are cracking those security measures. Hackers claim that a special TIFF file can cause a buffer overflow error in Mobile Safari, rendering the iPhone itself vulnerable. While these hacks are nowhere near as easy to use as what was happening in previous versions of firmware, it's definitely a start. There is no word as to when firmware v1.1.1 will be hacked to the point where alternative networks are available for the iPhone.

Seeking to improve its portable devices, Apple has applied for a patent that could lead to touch-sensitive Macs or handhelds which react to the level of force, rather than just contact. Originally submitted in March of last year but only published on Thursday, the patent for a "Force Imaging Input and Device System" describes today's touchscreens and touchpads as limited by their relatively simple input, which tracks just the location of the finger or stylus on the surface. A method of detecting the strength of the user's input would add a new element of control, according to Apple. The patent's inventors Brian Huppi and Steven Hotelling have suggested lining touchpads with a set of traces joined together by a sandwich-like spring membrane layer underneath the surface. Touching the pad would deform the traces and create a capacitive image in circuitry, indicating where contact has been made. But unlike traditional capacitive or resistive touch surfaces, the membrane would help create a second image that recognizes just how much pressure has been applied at a given point; the harder the user pushes, the closer the membrane reaches conductive elements inside the layer and the more force would be registered with each press. Computers, phones, PDAs, and control panels are listed as candidates for the technique, although Apple is not obliged to manufacture any products using its invention.

Apple has taken another swing at fixing a troublesome spate of QuickTime vulnerabilities. The company released an update for the Windows version of QuickTime media player on Wednesday afternoon to patch what Apple calls a "command injection issue" in the way the media player handles URLs. The flaw, which affects Windows XP and Windows Vista, was first disclosed in September of 2006 by Petko D. Petkov, a penetration tester. Petkov noted in a blog post this September that he reported two QuickTime bugs in the early fall of 2006. Only one, however, was patched. To bring attention to the year-old vulnerability, Petkov posted several proof-of-concept exploits on his blog last month. The issue does not affect computers running Mac OS X, according to Apple.

Apple's latest iMacs suffer seem to suffer from a graphics card problem that causes the computer screens to lock up. Numerous discussion threads on Apple's support forums report that, while the iMac display becomes unresponsive, the Mac itself appears to work normally. Apparently indicating the fault relates to the iMac's ATI Radeon HD card. iMac users suffering the screen freeze can get their Mac working again with a hard restart. Some users claim the fault appeared after they had installed recent software drivers (v1.1) for the Radeon HD card -- others claim that restoring the iMac to factory settings fixes the machine. While Apple is alleged to be aware of the issue, no fix for the flaw has yet been made available.

Apple has issued a warning to Boot Camp users that their beta software is on track to expire this month. The company's latest tech support posting for the software warns: "As indicated in the license agreement for Boot Camp Beta, the Boot Camp Beta program expires when Mac OS 10.5 Leopard becomes available publicly in October, 2007." The note explains that the license to use Boot Camp Beta 1.2 or earlier expired on 30 September, requiring users to upgrade to Boot Camp 1.4, which will work a little longer. The Boot Camp 1.4 license is set to expire when Mac OS X 10.5 is made available to the public. Apple has not yet disclosed a date for this release. "To continue using Boot Camp at that time, upgrade to Mac OS X 10.5 Leopard," the company warns. Previous reports have indicated Apple may release a version of Boot Camp for use with Mac OS X 10.4, but the company's existing technical support warning offers no information as to such future plans

IPhone firmware version 1.1.1 did a particularly nasty trick on anyone who had unlocked it via software: it rendered the iPhone unusable on any network other than AT&T in some cases, and in others, it "bricked" them, rendering them useless. Discussions on Apple boards were quickly locked down, and now a community of angry users is planning on suing Apple. The small group did not specify how much they plan on suing Apple for, but chances are, Apple is going to settle out of court.

After some users complained of the iPod Touch having issues with its LCD screen, it seems Apple has fixed the problem with the release of the 1.1.1 firmware. The iPod Touch was initially criticised for its screen being inferior to that of the iPhone despite the two using very similar hardware, however users are now reporting that their screens are much better, with issues such as the screen showing dark or negative images being resolved. It is speculated that the improvements are due to altered brightness and contrast settings - which would cast some doubt upon the original diagnosis that the LCD coating had been incorrectly applied. Although there seem to be mixed results, if you have an iPod Touch you should definitely give the new firmware a test and see if it offers any improvements for you. It is a 150MB download which should be available via iTunes.

Well, Apple did warn customers not to unlock their iPhones, and now the firm has taken steps to prevent it happening. With the launch of the new 1.1.1 update for Apple's new gadget, users will no longer be able to use third party SIM cards, they are instead restricted to AT&T only. Although there are some reports of unlocked iPhones becoming expensive paperweights, this seems rare and no more common than it is for locked phones, with most users instead finding themselves with a 'factory-fresh' iPhone with all the stock settings restored. But to be on the safe side, if you do have an unlocked iPhone it is recommended that you either don't download the latest update or you return your phone to its locked, factory state before you update it, with all the information you need available from Engadget.

Apple's next version of the Mac OS X is reportedly close to being a release candidate, and some analysts believe the company is on track to meet its self-imposed deadline of shipping Leopard next month. Developers received the latest pre-release of the OS, called 9A559, Friday evening, just hours after receiving two minor updates of the previous build 9A527, AppleInsider, a site for Mac enthusiasts, reported. Build 9A559 contained only a couple of known issues, and may be the first of several release candidates, AppleInsider said. The last release candidate graduates to "Gold Master," which is the version that's shipped for duplication and retail packaging. An Apple spokesman on Wednesday confirmed that 9A559 was the latest build, but could not confirm whether it was a release candidate. Leopard's official release number will be Mac OS X 10.5. For Apple to meet its promise of releasing Leopard to consumers sometime in October, the company would have to finish the current testing process within three weeks, and some analysts expect the company to meet the tight schedule.

The Macintosh Business Unit (Mac BU) at Microsoft Corp. today announced at the Apple Expo in Paris its product lineup for the upcoming Microsoft Office 2008 for Mac release. The flagship product, Office 2008 for Mac, is the core suite that includes Microsoft Office Word 2008, Microsoft Office Excel 2008, Microsoft Office PowerPoint 2008 and Microsoft Office Entourage 2008 for exceptional productivity on the Mac.

Apple today released for the first time an official statement addressing iPhone unlocking software. The company said in a press release that it has discovered that "many of the unauthorized iPhone unlocking programs available on the Internet cause irreparable damage to the iPhone's software. In fact, the damage may be so serious that "the modified phone" could become "permanently inoperable when a future Apple-supplied iPhone software update is installed." Several iPhone unlocking products - free and fee-based - are available on the Internet today. Apple also noted that users who make unauthorized modifications to the software on their iPhone will violate their iPhone software license agreement and void the warranty.

In order to promote the new iTunes Wireless service, Starbucks is set to give away free music downloads across its entire US channel. More than 10,000 stores will hand out a total of 1.5 millions songs per day from October 2 to November 7. Customers will receive a "song of the day" card with their coffee purchase, containing a promotional code to redeem at iTunes. 37 songs will be part of the promotion, including music from Paul McCartney, John Mayer, Bob Dylan, Joss Stone, and Annie Lennox. Earlier this month, Apple announced it had struck a partnership with Starbucks to allow users of the new Wi-Fi-enabled iPods to download music wirelessly while in the store. The service will have initial rollout in major cities, and is expected to be available nationwide by 2010.

Apple's new iPod Nano made some waves when it was presented. It now looks just like the classic iPod and features the same capabilities - most importantly video playback. Turns out that a large number of early adopters are turning on their brand new toy, just to notice the screen not being straight within the casing. While this tilt may not be a lot, it can easily be seen on the two inch screen. Apple is replacing these iPod Nanos, but even the replacement has the same defect at times. So if you just bought your new toy, expect to give it up for 7 to 10 business days, while Apple relaces your unit. Even the new 8GB iPod Nano of yours truly has the same defect - this is certainly not impressive Apple.

If anyone in the UK would like to save a little bit of money on a new MP3 player, Tesco could have the deal for you. The supermarket giant is offering all new subscribers to their DVD rentals service a free 1GB silver iPod Shuffle provided that they subscribe for at least three months. With the cheapest option costing £4.47 a month for two DVDs (with free postage), that works out at just £13.41 for a new iPod, plus you get to watch a few extra DVDs! The standard retail price of the iPod Shuffle is £49, so if you sign up for this you could potentially save yourself over £35. The only real catch is that you will have to wait for three months before you receive your iPod because Tesco won't send you it until you've given them the third payment, but this is definitely a bargain, and could even make a nice little Christmas present for someone. If you want to get a free Shuffle you'll have to be quick, because this offer only lasts until 10 o'clock in the morning on Sunday. Take a look here if you're interested.

Apple Inc. said Monday it sold its one millionth iPhone on Sunday, just 74 days after its introduction and ahead of its expectations to hit the mark by the end of September. The news came less than a week after CEO Steve Jobs apologized for cutting the price last week from $599 to $399, offering $100 credits to people who paid the higer price. Apple cut the price of its 8GB iPhone on Wednesday and said it would phase out the 4GB version, which sold for $499. The steep price cut annoyed many customers who purchased the phone early, though others saw it as the expected consequence of being an early adopter.

Steve Jobs has received tons of emails from iPhone customers complaining about the $200 price cut on the iPhone only two months after it was released. After reading through every single one of the e-mails, he has now decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store.

After releasing an entirely new lineup of iPods, Apple has also launched an iTunes Wi-Fi music store for the new iPod touch along with a new version of iTunes for customers to purchase ringtones for their iPhone. Customers must first pay $0.99 for a song from iTunes, then another $0.99 for the privilege of using that song as a ringtone. The new version of iTunes will include a utility to create ringtones based on any 30-second segment from a song complete with fade-in and fade-out. iPod touch owners will be able to use their Wi-Fi connection to logon to iTunes from any wireless hotspot to download individual songs or complete albums.

For more information, please visit Apple's Wi-Fi Music Store page.

Building upon the success of its touch screen iPhone, Apple decided to implement the popular feature on the new iPod which was revealed today. The ability to surf the web wirelessly is also an addition to the updated gadget. The entire lineup is expanding for the holiday season with a new iPod Shuffle and a smaller iPod Nano, which can play video. The company also updated its video player, renaming the device iPod Classic. It will cost $249 or $349, depending on the amount of storage.

Apple is expected to unveil its next-generation iPod lineup, including an iPod video with a touch-control interface, at a press conference on September 5th, according to DigiTimes. The new iPod video will come with a wide-screen panel, high storage capacity and Wi-Fi connectivity. In addition, the new iPod video is expected to be powered by NAND flash, instead of a hard disk drive (HDD). Apple's new products will also include a new iPod Nano and iPod Shuffle.

The iPhone battery replacement policy is causing quite a lot of controversy. Some allege that it costs over $100USD to replace your iPhone's battery, including the cost of an iPhone rental while Apple replaces the battery on the iPhone you actually own. And so, it's only natural that consumers who feel they have been swindled start a class action lawsuit. Plaintiffs Zoltan Stiener and Ynez Stiener accuse Apple of breach of contract, fraud, and violations of California law for not telling users how expensive an iPhone replacement really is. This is the third time someone has tried to hit Apple with a class action lawsuit for the cited reasons, and Apple has settled in all the previous cases.

According to market watcher NPD, Apple was the third largest laptop vendor during June, with only Toshiba and HP selling more machines. This puts Apple ahead of other major names such as Dell, Gateway and Lenovo, as buyers continue to choose Apple's updated MacBook and MacBook Pro notebooks over the more conventional brands. Figures show that Apple accounted for 17.6% of the laptop market, up from 14.3% in May, which also means that more than one in six laptops sold in the USA are made by Apple. However, these are only based on retailer sales, so the direct-to-buyer figures may tell a completely different story. This news comes soon after Apple managed to take the third-spot in overall computer sales, tied with Gateway on 5.6% (behind Dell and HP).

Iphoneunlocking.com, a subsidiary of UniquePhones (www.uniquephones.com), was poised and ready to release remote software unlocking services for the iphone today at 12 noon EST. The sale of unlocking codes is on hold after the company received a telephone call from a Menlo Park, California, law firm at approximately 2:54 a.m. this morning (GMT).

After saying they were phoning on behalf of AT&T, the law firm presented issues such as copyright infringement and illegal software dissemination. Uniquephones is taking legal advice to ascertain whether AT&T was sending a warning shot or directly threatening legal action. The logistics of different continents as well as it being a weekend factors into how the situation develops.