iPhone News Updated

Congressman wants FTC probe of iPhone tracking

A Democratic congressman isn’t satisfied with Apple’s explanation of why iPhones keep track of their users’ locations and wants a federal probe into the Cupertino software marker’s privacy practices, CNET has learned.

Rep. Jay Inslee of Washington said through a spokesman yesterday that a Federal Trade Commission investigation is still needed to “ensure all the questions regarding this issue, including the lack of disclosure, are answered.” Inslee said he has not received a response from Apple to questions in a letter he sent last week.

Inslee, who is a member of the House Energy and Commerce Committee, also said this is an example of why new federal laws and regulations restricting companies’ data collection and use practices are necessary. Previously, in 2004, he introduced unsuccessful legislation called the E-Mail Privacy Act.

Yesterday morning Apple posted a list of questions and answers on its Web site saying the iPhone’s controversial location-history database, which caused significant controversy when publicized lack week, was a way to improve location services. Apple also acknowledged a “bug” that can cause an iPhone to store over a year of location data, saying that it shouldn’t need to store more than seven days worth.

Microsoft says it does not save location histories directly on Windows Mobile 7 devices, but acknowledges in in some circumstances it collects information including a unique device ID, details about nearby Wi-Fi networks, and the phone’s GPS-derived exact latitude and longitude. Android devices store a limited amount of location information but transmit to Google current and recent GPS coordinates, nearby Wi-Fi network addresses, and two 16-letter strings apparently representing a device ID that’s unique to each phone.

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Apple rumored to have cut CDMA iPhone 4 orders by half as sales slow

Sales of Apple’s CDMA-based iPhone, which made its debut on Verizon earlier this year, have reportedly eased considerably following initial pent-up demand, prompting the company to halve its production of the device for the remainder of 2010.

According to a report by DigiTimes, iPhone 4 assembler Pegatron this week reported a net losses of NT$559 million (US$19.38 million) for the first quarter of 2011 with per-share earnings of negative NT$0.25 and gross margin of only 1.8%, all historical lows.

The results are said to have surprised market watchers, who were initially bullish on the manufacturer’s performance in 2011 after it landed orders to produce the CDMA iPhone 4 for Apple. Looking forward, those market watchers are said to be “turning conservative about CDMA iPhone 4 shipments in the future as volumes may not be as strong as expected.”

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