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Edition: U.S. Article Comments (2) Slideshow Save Email Print Reprints Most Popular Most Shared Netanyahu ducks U.S. nuclear summit, fearing censure 1:31pm EDT Women tried to smuggle corpse onto plane? 06 Apr 2010 Regulators looking at antibacterial in soap 08 Apr 2010 Special Report: How the U.S. cracked open secret vaults at UBS 6:12am EDT Iran will not beg to avoid sanctions: Ahmadinejad 08 Apr 2010 Women tried to smuggle corpse onto plane? 06 Apr 2010 Regulators looking at antibacterial in soap 08 Apr 2010 Workers strike over ban on drinking at work 08 Apr 2010 Special Report: How the U.S. cracked open secret vaults at UBS 6:12am EDT Netanyahu ducks U.S. nuclear summit, fearing censure 1:31pm EDT Apple unveils iAd platform; iPad sales look strong Gabriel Madway CUPERTINO, California Fri Apr 9, 2010 6:29am EDT < 1 / 5 > View Full Size CUPERTINO, California (Reuters) - Apple CEO Steve Jobs showed off a new smartphone operating system on Thursday that features an advertising platform to compete with Google's, and revealed stronger-than-expected sales of 450,000 units for the iPad. Technology | Media The iPhone 4.0 software will be available on Apple's hugely popular smartphone this summer, complete with a number of upgrades, including a long-awaited multi-tasking capability that allows the use of several applications at once. A version of the iPhone's operating system is also used on the iPad, and the latest generation of software will come to Apple's new tablet computer this fall. The new advertising platform for the iPhone and iPad -- dubbed iAd -- marks Apple's first foray into a small but growing market, and is sure to please the thousands of application developers who make their living off those devices, providing them with a new revenue stream. The iPad's early sales impressed analysts, many of whom expect 1 million units to be sold in the quarter ending June, and roughly 5 million in 2010, though estimates vary widely. "We're making them as fast as we can. Our ramp is going well, but evidently we can't quite make enough of them yet so we're going to have to try harder," Jobs said, noting iPad sellouts at Best Buy stores. The electronics giant has staked its reputation on the 9.7-inch touchscreen tablet, essentially a cross between a smartphone and a laptop. It is helping foster a market for tablet computers that is expected to grow to as many as 50 million units by 2014, according to analysts. "I think it's pretty impressive, five days almost half a million units, and it shows there's still pretty good momentum behind the first day," said Gartner analyst Van Baker. Despite critics who question whether a true need exists for such a gadget, analysts expect Hewlett-Packard, Dell and others to trot out their own competing devices this year. Since the iPad went on sale on April 3, users have downloaded 600,000 digital books and 3.5 million applications for the device, Jobs said. There are already 3,500 apps available for the iPad. "It was above my expectations, frankly," said Joe Clark, managing partner of Financial Enhancement Group, referring to iPad sales. "The day the original Apps Store launched it was a game change for the iPhone and it will do the same eventually for the iPad." At a media event at the company's Cupertino, California, headquarters, Jobs said Apple had so far sold more than 50 million iPhones, the smartphone that competes with Research in Motion's Blackberry and Motorola's Droid. That implies that the company sold 7 million or more devices in the March quarter, which would be above many analysts' forecasts. MOBILE AD WAR Apple is expected to launch the fourth-generation model of its iPhone, which was introduced in 2007, later this year. Pancreatic cancer survivor Jobs, looking thin but energetic, introduced the iAd mobile platform, which he said had the opportunity to make 1 billion ad impressions a day on tens of millions of Apple mobile device users. IAds will allow applications developers to use advertisements in their apps, pocketing 60 percent of the revenue. Apple will sell and host the ads. Jobs harshly criticized the current manner and look of mobile advertising, particularly search ads. He promised that iAds will foster more engaging advertising that will not pull users away from the content within apps. NEW ARENA Tim Bajarin, president of consulting company Creative Strategies, said it was a dramatic shift in thinking about the delivery of mobile ads, and an obvious move by Apple to set itself apart from Google Inc, which made its name on search ads. "It's very clear that Jobs believes that ads in the context of apps makes more sense than generic mobile search," he said. Apple's entry into the mobile ad arena had been widely expected. This year, it paid $270 million for Quattro Wireless, an advertising network that spans both mobile websites and smartphone applications. Google, which already sells advertising on smartphones, agreed to buy mobile ad firm AdMob late in 2009. U.S. regulators are examining the deal's antitrust implications. Jobs said Apple was also in the hunt to buy AdMob before Google "snatched them from us because they didn't want us to have them." The comments were just the latest hint at the rift that has emerged between Apple and Google, which were once allies but now compete in a number of arenas. Research group Gartner expects the mobile advertising market to expand by 78 percent to $1.6 billion in 2010. Jobs also said the new operating system will include support for multi-tasking -- addressing a perennial consumer complaint -- allowing users to switch between several programs running simultaneously. Shares of Apple turned positive briefly after Jobs' announcement, before quickly dipping back into negative territory. They closed 0.3 percent lower at $239.94 on the Nasdaq. (Writing by Edwin Chan; Editing by Steve Orlofsky, Leslie Gevirtz and Matthew Lewis) Technology Media Comments See All Comments (2) | Post Comment Apr 09, 2010 8:19am EDT Is there no refuge from annoying pop-ups? groovyd Report As Abusive Apr 09, 2010 3:26pm EDT What, you don’t like windows popping up all over the place? leftcenterright Report As Abusive See All Comments (2) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. More from Reuters How the U.S. cracked open the secret vaults at UBS When executives from UBS were summoned by U.S. regulators over a tax fraud probe, the plan was simple: admit guilt and move on. Reuters investigates the events that pushed Switzerland's largest bank to the brink. Full Article U.S. begins new wave of UBS client tax cases UBS Fannie's bad business model It wasn't the pursuit of profits at the expense of home ownership for poorer Americans that caused Fannie Mae's collapse, says the former CEO. Full Article Making the case against Citi James Saft: Sold signs aren't enough Banks One step at a time Is it possible to make money by giving away your product? After donating more than 400,000 pairs of shoes, Blake Mycoskie thinks so. Full Article Video: TOMS shoes Factbox: A look at TOMS numbers Small Business © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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