Apple Rumors – Sony May Pull Music Catalog from iTunes

Here are your Apple rumors and news items for Thursday.  Apple Inc. (NASDAQ: AAPL ) is facing the end of Sony music on iTunes, Steve Jobs is working hard on iPad 2 plans and online Verizon iPhone orders dramatically outweigh brick and mortar orders. Sony Threatens to Pull Music From iTunes: The growing feud between Apple and Sony (NYSE: SNE ) heated up on Friday when Sony Computer Entertainment executive Michael Ephraim hinted that Sony is considering removing its music properties from the iTunes Music Store. Speaking with Australian news outlet The Age , Ephraim discussed the impending release of the Music Unlimited subscription-based music service from Sony in Australia and said that he hoped it would eliminate the need to have Sony’s music on iTunes. “[Does] Sony Music need to provide content to iTunes?” he said. “Currently we do. We have to provide it to iTunes as that’s the format right now,” said Ephraim. “Publishers are being held ransom by Apple and they are looking for other delivery systems, and we are waiting to see what the next three to five years will hold.” Sony recently came into conflict with Apple when the company’s Sony Reader app, a digital bookstore akin to Apple’s iBookstore and the Amazon.com (NASDAQ: AMZN ) Kindle App, was banned from the iOS App Store on grounds that Apple won’t distribute other app stores. Steve Jobs Working Hard on iPhone 5, iPad 2: The Wall Street Journal gave an update on CEO Steve Jobs activities with Apple on Friday, just shy of one month after the executive began a six month leave of absence from daily operations due to health problems. Sources say that though Jobs isn’t at the Cupertino, California campus, he remains hard at work on the next iterations of the iPad and iPhone, both expected to release in the next six months.  Daily operations at Apple under COO Tim Cook, filling in during Jobs’ absence, have stayed unchanged. Jobs’ health, meanwhile, remains a mystery. Sources say the CEO continues to look thin and that appears to be “going about things in much the same way as he did during his previous medical leave, at the time of his transplant.” Low Turnout for Verizon iPhone at Retail Point : Past iPhone releases have often been marked by large consumer turnout at retailers, with lines stretching full city blocks while people wait for a chance at Apple’s latest smartphones. The much-hyped CDMA iPhone 4 release on Thursday was low key by comparison; Mike Abramsky of RBC analyst said that a survey of 40 Verizon (NYSE: VZ ) stores in more than 6 cities said that though “demand was steady throughout the day,” only some stores were expecting to sell out. Some blogs like Silicon Alley Insider said that the lines of customers waiting for the phone were “laughably short.” Verizon and Apple shareholders have little to worry about however as Ticonderoga Securities analyst Brian White says that the low turnout had more to do with the strength of last week’s preorders than consumer disinterest. Verizon sold out its allotment of preorders in just 2 hours on February 3, and though the company didn’t specify exact numbers, White suggests that between 700,000 and 1 million CDMA iPhone 4s were preordered. Coupled with decent, if not massive, customer turnout on Thursday, the CDMA iPhone 4 stands a good chance of breaking the AT&T (NYSE: T ) iPhone 4′s first day sales record. As of this writing, Anthony John Agnello did not own a position in any of the stocks named here.
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