It's been in the rumor mix for well over a year now, first popping up in connection with the iPhones-at-Walmart & Best Buy deal, but now the cat is out of the bag and rummaging around in the shelves full of diodes, UHF antennas and talking robots: late last Friday, RadioShack announced that it would begin selling the iPhone in a few NYC and Dallas stores in time for the holiday shopping rush, with wider availability to begin in 2010.

While the addition of another retail outlet to the mix of stores (including AT&T and Apple's own operations) that carry the iPhone may not do a whole lot for general availability of the device -- frankly, if you can't find an iPhone 3GS near where you are, you can get one online in a jiffy -- it certainly did a lot for RadioShack's investors. The stock was up over 14% on the first trading day since the announcement, with analysts suggesting that the presence of the iPhone may help to drive up in-store traffic for the Shack during the busy holiday season and year-round.

Let's think about that for a second. Just having the iPhone in the shop for shoppers to fondle, nuzzle and take home as their very own is considered, in the eyes of the market, a material advantage for an electronics chain with nearly 5,000 US stores.

You've come a long way, baby.

In an interview with Times Online, Matthew Key, head of O2, shared his company's plans to allow users of out-of-contract iPhones to switch to other providers:

"Once the iPhone becomes available on other UK networks, we will allow O2 customers to unlock their iPhones, although of course they will still need to honour any outstanding contract period they have. At the end of their contract period, they are entirely free to move to another operator...."

Of course, this hinges on other carries -- namely Vodafone and Orange -- ending O2's exclusivity. Both Vodafone and Orange are scheduled to start selling the iPhone next year. O2 first announced UK pricing in June of this year.

That's good news for users in Britain and makes me wish the same were true in the US. While I love my iPhone, AT&T often ruins the experience with dropped calls and "fewer bars in more places." The thing is flawless on Wi-Fi; hit-or-miss via 3G. A part of that is likely due to my location (my neighborhood makes that town in Deliverance resemble Gotham), but I'm certainly not the only one complaining about coverage.

[Via Wired]

VentureBeat reports that Shazam [iTunes Link], an app that's long been a favorite among several TUAW staffers, is now offering a paid version. The $5 Shazam Encore (link opens iTunes) offers faster, unlimited tagging of music. A new mode designed for your car will tag whatever music is playing over the radio if you have your iPhone or iPod Touch hooked up to a car adapter. There are also recommendations based off existing tags, the ability to search Shazam's database, and more.

This new feature set does come at a cost to new users of the Shazam free app. New users can now only tag five pieces of music per month. The VentureBeat article adds that existing users of the free app can still tag with no limits.

[Via Macworld]

Folklore.org is a tremendous repository of Apple history and lore. Check it out if you haven't; you'll find some entertaining and incredible stories.

I'm reminded of Folklore whenever a story emerges describing Apple from behind the scenes, like this interview with id Software's co-founder John Carmack. Speaking with Kotaku, John describes the ups and downs of working with Apple:

"I'll be invited up on stage for a keynote one month and then I'll say something they don't like and I can be blacklisted for six months."

We suspect such a public revelation won't get you back on stage anytime soon, John. Or maybe not, as he's now got "a man on the inside." Former id coworker Graeme Devine now works at Apple's iPhone Game Technologies division. However, the most interesting part of this interview confirms, in a small way, what I've always suspected: Apple begrudgingly promotes the iPod touch and iPhone as gaming platforms.

"At the highest level of Apple, in their heart of hearts," Carmack said, "they're not proud of the iPhone being a game machine, they wish it was something else." I have no way of backing this up, but I've long suspected that Steve Jobs in particular has no interest in the world of gaming. They're certainly pushing the iPod touch as a gaming device, but I'm sure it's through tightly-clenched teeth.

Time Magazine has published their list of 2009's best travel gadgets, and the iPod touch and MacBook have made the cut. Time notes the MacBook's size and high green ratings as well as the iPod touch's speed, Wi-Fi compatibility and library of games worked in their favor.

I do my share of traveling (as does Steve) and find that my iPhone plus a couple of well-selected apps are enough to get the job done most of the time.

It's strange that the iPhone wasn't included, since its connectivity isn't limited to Wi-Fi as the iPod touch is. It's even stranger that several apps also made the list, like Yelp (tap the masses for dining tips) [iTunes link] and the Zipcar App (find a quick-and-easy rental), but not the device that would get the most out of them. Perhaps it was the high cost of service for the iPhone?

Stranger still is their inclusion of the Droid. We assume it made the cut based upon its proven track record. I mean, it's been out for a whole 3 days now.

[Via MacDailyNews]

If you are a sometime PC user you probably know about Orb, a multimedia sharing tool that allows you to access your media from anywhere you have an internet connection and a browser. Now, Orb has come to the Mac and it's got great possibilities -- but it's a mixed bag in terms of reliability.

You can download Orb for free, and set up a no-cost account. The software will index your iPhoto libraries, as well as your iTunes library, both audio and video.

You can then log into your Orb account on any other computer, fire up a browser, and play your media files. Orb has also had an iPhone app that logs you in and gets your media as well. It's been available for a long time, but only would work with a PC-based host. Now your Mac is accessible too.

Orb still lacks a few features you can get on the PC version. One big one is it won't talk to a TV tuner, so you can't look at live video from home on another computer. I expect this will be coming in short order. You can share media with others from the Orb website. They will need a free account, but they can watch a movie or listen to music or view photos just as you do.

Way back in September, we announced that Mobile Mechatronics was going to be selling a combination of a tiny tripod and an iPhone app called Blur. The idea behind this combo is that the tripod can hold your iPhone more steadily than your hand can, and then the software can assist you by either taking a photo after a delay or taking several photos in quick succession.

At the time, I asked Mobile Mechatronics to send some samples for us to test and then give away. The tripods arrived very quickly, but the software was nowhere to be found. In my quest to get review equipment out of my office and into the hands of TUAW readers, I kept searching the App Store for the app. It appears that Mobile Mechatronics fell into the bane of iPhone developers everywhere -- slow approval of apps -- because it finally showed up when I searched this week.

With over 100,000 apps in the app store, it's getting harder and harder to find something new; most apps seem to be 'me too' versions of something else. Balloons! US $2.99 [iTunes Link] for iPhones running OS 3.0 or better, is something I haven't seen before, and it's really very clever. TUAW first got a look at an early development version of Balloons! back at WWDC, including a video interview with the developer.

Balloon mail has been used, along with the more common phrase message in a bottle, to describe sending a message into the wind or sea and hoping that someone finds it and contacts you. It's sort of non-directional social networking with a hint of mystery built in.

In this app, you start making a balloon by choosing from a variety of balloon styles. Next you create a message that the balloon will convey. Tap in the middle of the screen and the camera activates to take a picture of what's going on in your life at the moment. Then add a bit of text and send the balloon out into the world. Other users, over 900 in the first 3 days of sales, are doing the same thing. Over 3500 balloons have been sent up from the US, Europe, and Japan already.

Next, you'll want to catch a balloon. When you do, you'll see the message from the person who made the balloon along with a separate flippable page from everyone who caught the balloon, added something to it, and let it fly again. As more people catch, add to, and release balloons, each balloon takes on a history and often has a story to tell.

The balloons don't travel randomly. If launched in New York City, you can't immediately grab the balloon in London; it needs time to travel.

If you want to see what has happened to your balloon, there is a balloon tracking option that tells you how long your balloon has been flying and if has been caught or not. Tap on one of your caught balloons and you'll see all the notes added by those that have seen your balloon. I found this to be a lot of fun.

There is a free, advertising-supported version of the app [iTunes Link] that doesn't include the tracking option. I liked the idea of giving out a free appetizer, since you can get a great idea of how Balloons! works and quickly realize that the best part of the app is the tracking option.

The graphics suit the app nicely. Screens are very cartoonish using bright colors and animated clouds. I was taken by the whimsy of this app, and can see it being great for kids as a nudge toward becoming interested in geography. It's also fun, tinged with a bit of longing for faraway places, for everyone.

Take a look at the video in the 2nd half of this post to see it in action.

For the last few days, some jailbroken iPhone users have found their home screen background a little different than they remembered. A hacker, going by the name "ikee," created a worm that changes the home screen background on jailbroken iPhones whose owners failed to change the default password after installing SSH. Simply jailbreaking your iPhone will not make you vulnerable to this sort of hack. The iPhone OS, in general, is also immune to this hack. Still confused? Let's back up a bit.

On jailbroken iPhones, SSH is installable with a package from Cydia that allows you to connect to your phone and make changes to the filesystem. It does this by logging into the root user with the password "alpine." After installing SSH, it is always recommended that you change "alpine" to the password of your choosing. This hack can only affect people who chose not to change that password -- no one else.

This hack originated in Australia, the home country of ikee, and has possibly spread to other iPhones in other countries, but we've been unable to verify that. A gentleman by the name of JD held an interview with the hacker over IRC and posted it to his blog. In ikee's own words, here's how the worm has spread:

...The code itself is set to firstly scan the 3G IP range the phone is on, then Optus/Vodafone/Telstra's IP Ranges (I think the reason Optus got hit so hard is because the other 2 are NAT'd) then a random 20 IP ranges. I'm guessing a few phones hit a range that another vulnerable phone was on.

Basically, once your phone is infected, the worm starts looking for other iPhones on the cellular network that use the root:alpine combination. Once it finds another vulnerable iPhone, it installs itself and begins the process again... and again... and again.

Luckily for the jailbreakers in the audience who may have been affected, there's really no harm done -- at least not with this version of the worm. According to the hacker, this was more of an experiment than anything else. The worm changes your background and then disables inbound SSH, which is a good thing. If SSH was left turned on, a similar worm could follow along but conceivably do much more damage. For instructions on how to delete this worm, read JD's interview with ikee. I would recommend reading the interview just for the information it presents; I found it pretty interesting. If you've got a jailbroken iPhone or iPod touch and you've never changed the default device password, now's the time. Here's how, if you are using terminal:

Type: ssh root@(iPhone IP address)
When prompted for the password type: alpine
Now you're connected the phone...
type: passwd
It should then prompt your for a new password -- type one that you'll remember. There's no easy way to reset it if you forget it.

That's it. Please remember to be responsibly secure with your devices. Hackers like ikee are troublesome, but this could have been much worse. While I don't personally condone his actions, he's prevented a lot of people from being vulnerable to more malicious attacks later down the road.

Thanks, James!

Several readers have urged me to try the Gokivo Navigator for the iPhone [iTunes link], so today is the day. The app is U.S. $4.99, but that only provides you with GPS navigation for 30 days. After that, the app costs $4.99 monthly or you can purchase a year of service for $39.99. That's quite a bit less that the AT&T nav solution [iTunes link], and makes the Gokivo app quite competitive. The app includes a Traffic Tracking Center, text to speech so street names are announced as you drive, and it has iPod controls so you don't have to leave the app to change your music.

Like the AT&T app, if you are out of range of the data network, you won't get maps. And like most of the competition, Gokivo gives you an estimated time of arrival, distance to your destination, and your current speed.

The map doesn't work in landscape view, which I consider a strong negative. It's easy to navigate to your addresses in your Contacts app, and the feature is nicely integrated.

Apple, being the innovative corporation that it is, applies for patents many times per year. While many of these items may never make it to market, the company is proactive in making sure that possible patents are filed as soon as possible in order to protect the intellectual property that's been developed.

One such filing from last year describes a fascinating cloud-based, cross-platform sync service referred to as "Grab & Go." The filing showed up earlier this week and demonstrates how synchronization of data over multiple devices could be simplified. Grab & Go creates pre-defined data sets with categories like family, entertainment, or business that a user could literally "grab" and move to a device. The patent document shows how sharing files between devices (whether the device is a smartphone, computer, tablet, or even a game console) could be made easier.

The software is flexible enough to adapt to different connection types (Bluetooth, Wi-Fi, Ethernet, to name a few) and can provide different levels of encryption and security. The filing even discusses a possible requirement of having two or more devices within a certain distance of each other in order for synchronization to begin.

If you're up for a long, but interesting read over the weekend, head on over to the US Patent & Trademark Office and check out the details of Grab & Go. It could be a foretaste of things to come, or just another long legal document.

[via AppleInsider and Engadget]

As a guy who likes shopping online, but who still appreciates the act of going into a retail store for big purchases, I love this news. Apple has introduced a "Reserve and Pick-up" service for the holiday season.

The name is a little unwieldy, but it gets the point across. You go onto the Apple web site to find what you want, click to reserve the product at a nearby Apple Store, and then go to the store and pick up the goods while you're doing your holiday shopping between December 15 to 24.

For many folks, this might seem awkward -- why not just buy the product online and get it shipped, or just go to the store and buy it? For guys like me, it's perfect -- all of the convenience of choosing a product online, with the added bonus of being able to check out the retail store during the holidays.

iLounge notes that there's no AppleTV on the list, so if you were planning to pick one up as a gift, you'll have to go a more traditional route. There's also no way to actually reserve an iPhone. Instead, you're told to get an iPhone gift card to give to some lucky recipient. Nevertheless, I like the idea of reserve and pick-up, an interesting mix of online shopping and in-store purchasing for the holiday season. It's Apple take-out.

Want an iPhone app business without all the boring hassle of actually programming and releasing iPhone apps? Boy, does Brice Milliorn have a deal for you! He's auctioning off his iPhone app business, which he says has 87 different apps for sale, over on eBay.

Milliorn says he started out developing apps on his own, but the business is just too big for him to keep up so he's selling all of the apps and their rights, all of the source code, and technical support for two months to transition everything over to the new owner. He doesn't specifically say that he'll transfer the developer account on Apple's App Store to your name (he says he'll send over a DVD with the source code and transfer "the whole kit and caboodle" to you), but we presume that's what will happen -- of course if you go for it, you're doing this at your own risk.

What will a burgeoning App Store business, complete with apps like iSexyRef and Swine Flu cost you? Just a cool $100 grand. That's the starting bid in the eBay auction, which has just over a week left and no bids as of this writing. There are certainly less expensive ways to get started selling apps on the store. It only costs $100 to register in Apple's Developer Program for a year, and then you just need to find a developer you can pay -- or even do it yourself with a helper service).

If you'd rather start off with a bunch of marginal to silly 99-cent apps and happen to have an extra $100,000 lying around to spend (maybe for a nice holiday gift?), here's your opportunity.

If you're tired of dropped calls and dead zones, and pondering the merits of turning in your iPhone for a DROID... hold on there, champ. AppleInsider says it's received a copy of a report by OTR Global, claiming that Apple has signed contracts to produce a UMTS / CDMA hybrid iPhone to be released in the third quarter of 2010.

The hybrid handset, built around a dual-system chip from Qualcomm, would allow the iPhone to run on virtually any GSM/UTMS cellular network worldwide -- and also on the CDMA2000 networks of US carriers like Verizon and Sprint. In particular, Verizon is cited in the report as the target carrier for the new devices.

The report states that Foxconn, the Taiwan-based sole-source provider of iPhone hardware at this time, will not build the new device. Instead, a subsidiary of Asustek known as Pegatron has been selected to kick off manufacturing. It's also rumored that the hybrid device uses a 2.8" screen, making the handset smaller than the current model which uses a 3.5" display.

Photos of the smaller display were first featured on iLounge in June of 2008 (see photo at right), sparking widespread rumors at the time that an "iPhone nano" was on the way. Over a year later, neither the smaller iPhone nor a Verizon model are available. However, if the leaked report is any indication, 2010 could be yet another year of incredible growth for the iPhone economy.

After a long wait, Squarespace customers finally have an iPhone app of their own. Squarespace is a hosted blogging/CMS service that competes with the likes of WordPress.com and Typepad. Having used all three, I can say that interacting with Squarespace (posting, changing your site's look and feel, etc.) is unlike the others. Instead of a separate control panel/dashboard, Squarespace previews changes in real time on the same screen. It's really nice.

The iPhone app [iTunes link] seems to be an extension of its browser-based sibling. For example, check out the live preview mode pictured at right. You can also manage multiple accounts, post, upload multiple images at once (awesome) view stats and more. The UI looks nice as well.

While bloggers on other platforms have had compatible apps in the App Store for a while now, this is Squarespace's first solution. We're eager to play around with it. Squarespace for iPhone is free and requires a paid Squarespace account.