It's hard enough for Motorola's handset division to go about its business these days without losing talent, but losing executives to Apple's iPhone team? That's just a straight-up slap in the face, and Moto's not gonna take it lying down. The We Generation has filed suit against Michael Fenger, the dude running its handset business for the EMEA market for six years until March this year, when he quit to take up a posh job as Apple's veep of global iPhone sales. That isn't a problem in itself -- businessfolk switch teams all the time -- but it seems Mr. Fenger had an agreement in place not to work for a competitor inside of two years following his departure. Moto claims he "was privy to the pricing, margins, customer initiatives, allocation of resources, product development, multiyear product, business and talent planning and strategies being used by Motorola" (not to say that data's worth much more than the paper it's written on these days) and wants over a million bucks back plus a court order banning him from working for Cupertino for those promised two years retroactively to March 31; non-compete clauses generally aren't valid in California, but since this one was executed in Illinois and the case is filed in Chicago, they've got a shot here. Note to current execs still out there in Schaumburg: better start righting that ship you're on, because you ain't getting on a more buoyant one without a fight.

[Via CNET]

iPhone unlocking is a little more cash-intensive now that Apple and AT&T are all contract-happy with the 3G, but it looks like would-be unlockers will have a little more time to save up those pennies -- the erstwhile hackers on the iPhone Dev Team say that while a forthcoming version of the sadly-named Pwnage tool will activate and jailbreak the iPhone 3G, unlocking is taking a little longer than expected, and they don't want to release the code until it's exactly right. The tool still unlocks first-gen iPhones running 2.0 and allows jailbreak apps to co-exist with the App Store, so if you're desperate to unlock right away, we'd say a first-gen unit is your best bet.

Alright, can someone help us out with a little primer on German law here? California-based sipgate offers up a VoIP client for the iPhone that -- for the moment, anyway -- requires a jailbroken handset to run. It goes about its business on WiFi airwaves, so from the carrier's perspective, no harm, no foul, right? Not so much. T-Mobile Germany takes issue with the app, claiming that it's enticing its iPhone users to jailbreak -- a violation of its contract terms. Furthermore, the contract disallows VoIP of any kind, WiFI or otherwise, which pretty much makes sipgate public enemy number one in T-Mob's eyes. They've gone ahead and sent out a nasty little cease 'n desist, which sipgate says it plans to fight all the way through the court system if that's how T-Mobile wants to roll; meanwhile, it's still providing service and says that "for the time being [its] users are safe." Fight the good fight, guys.

[Via TUAW]

Yeah, so there's still lots of confusion on whether bona fide turn-by-turn GPS software will ever arrive on the iPhone 3G (though signs are pointing to "yes"), but considering that it's not there now, Autoblog took Apple's new darling for a spin in the Bay and churned out some impressions. If you're looking for the long and short of it, the iPhone 3G's navigational abilities aren't that impressive. The reviewer even went so far as to say that having a passenger manning the arrow buttons that showed your next move was "almost a necessity." Additionally, the GPS flaked out and lagged behind the current location quite frequently, which can definitely be a problem when attempting to navigate one-way streets in an unkind downtown. So, should you sell off your standalone navigator on the way to pick up your new iPhone 3G? Probably not -- at least not just yet.

We just happened to be in Sao Paulo, Brazil, this week and when the news popped up that a group of Brazilians had unlocked the iPhone 3G, we just had to pop in to say hi. Like the Turbo SIM unlock for the original iPhone, this system uses a wafer-thin card that piggybacks on your SIM while in the phone. Of course, Turbo SIM needed some tools installed on the iPhone -- so Jailbreak was key -- this solution does not, just DesbloqueioBr's chip and your SIM. Paulo and Breno of DesbloqueioBr explained that the magic lies in the programming of the SIM adapter itself, by tricking the iPhone into believing a test SIM has been inserted, the iPhone allows service and then functionality is handed back to your SIM. We tested the unlock in our own FIDO locked handset with a local TIM SIM card, then in their AT&T set, and it worked perfectly in both. How much will this cost average Joe iPhone user? They were pretty tight lipped as to what the final pricing will be and how exactly they'll deliver the service, but we should hear more in the next few days. Check the vid of it all in action after the break.

Don't act like you didn't know that Pope Benedict XVI was down with modern technology. As part of World Youth Day, the man himself will begin sending out texts of encouragement to pilgrims who have signed up through Telstra to receive them. A total of four gigantic "prayer walls" have been erected at the Sydney Opera House, the Domain, Darling Harbour and Randwick Racecourse in Australia, where folks will actually be able to send their own messages for all to presumably see. The first message sent out? "Young friend, God and his people expect much from u because u have within you the Fathers supreme gift: the Spirit of Jesus - BXVI." Hllujh, amn brtha.

[Thanks, zedster]

Tech firms seem to have this uncanny ability to significantly boost functionality while significantly reducing cost with each new generation of a product -- and you'll never believe this, but it looks like Apple is no exception. The teardown and bean-counting experts over at iSuppli are at it again with the iPhone 3G, finding that the whole kit and kaboodle tallies up to just $174.33 (give or take) for the 8GB model in material and manufacturing costs. That works out to about $53 less than iSuppli's estimate for the original 8GB model back in June of last year, an amount saved in part by moving to a single 10-layer circuit board (versus a pair of 6-layer boards). The firm figures Apple's shelling out about $50 in royalties for each iPhone 3G that rolls off the assembly line, leading to a grand total of $224.33 in costs. Offset that with a healthy AT&T subsidy, and all told, we're looking at something like a 55 percent margin to help Steve finance his next round of black turtlenecks.

[Via AppleInsider]

There's been a lot of random misinformation about the iPhone 3G floating around out there, like David Pogue's baffling comment that the device's GPS antenna is "too small" to support turn-by-turn directions, and Apple's iPod and iPhone marketing head Greg Joswiak recently sat down with AppScout to clear up some of the confusion. Greg says that Apple has an internal priority list of features for the iPhone, and that the company went as far down the list with the 3G as it could -- and that copy / paste support simply didn't make the cut. Similarly, there are no technical issues preventing turn-by-turn directions, just other "complicated issues" (read: legal agreements) that need to be sorted out, and Josiwak expects developers to "amaze us." as things "evolve." Hopefully that means that nav app TomTom's got in the labs will evolve its way into the wild sometime soon. Finally, Joswiak said that he's not aware of any technical reasons an office suite isn't already in the App Store, but that the lack of a cross-application file structure could impede development. Yeah, and maybe the lack of copy / paste, you think?

Just because you're scooping up a free app or three on Apple's App Store doesn't mean that the developers behind them need to starve. Medialets, a nascent start-up specifically targeting iPhone devs, offers cookie-cutter code that can be inserted into apps to add an advertisement here and there -- mildly annoying, possibly, but if it means we get charged a big ol' goose egg when we download the goods, it might just be worth the tradeoff. Perhaps the most surprising thing about the enterprise is that Apple's apparently cool with it; the App Store distributes free apps without charging the developer a dime, after all, presumably under the assumption that the entire ordeal is not-for-profit, but that assumption gets turned on its head when Medialets comes into play and cuts Apple clean out of the revenue share. Ultimately, we wouldn't mind seeing two versions of each app offered: one at full price, and a second ad-supported version at a reduced price or free. How's that for thinking outside the box?

Alright, you three are sworn enemies, so what are we waiting for? Let's get it on! Go ahead, seriously, exchange some blows. No better way to get the party started than with a little speed test; the Instinct's data services still seem to be jacked, but the Dare and iPhone 3G squared off with the LG model consistently besting Apple's by between 50-100kbps over Verizon's EV-DO network (see the gallery for the side-by-side). That's not to say the Dare is consistently the faster phone -- it has everything to do with the network in your area, the time of day, the circumstances, and which side of the bed you woke up on this morning -- but it's an interesting observation here nonetheless. We'll follow up with an Instinct speed test (and another round of testing on the Dare and iPhone) when we can.

You hear of this new iPhone 3G thing? Doing pretty well, or so we hear. Apple says they sold one million of 'em this weekend worldwide, compared to the 74 days it took them to hit one million with the last generation. So far the little bugger has invaded 21 countries, with France next on its hit list on July 17. Oh, and that App Store isn't doing too bad for itself either, with 10 million downloads so far to iPhone 3Gs, updated iPhones and iPod touches. No breakdown yet on paid apps versus free apps, but Jared is free, and that's all that matters. However, the saddest fact in all of this is that bunches of suckers enthusiastic fans are queued up at the Fifth Avenue Apple Store this morning in New York (pictured), showing either a level of devotion to this little plastic bauble, or of complete disregard for their jobs, which is altogether frightening.

[Thanks, Laura]

Read - One million iPhone 3Gs sold
Read - 10 million App Store downloads

Craziest thing, Apple apparently launched some sort of device being loosely coined as a "cellular telephone" last Friday. The darned thing makes calls, keeps track of contacts, and even receives messages -- all right from your pocket! Wild, sci-fi caliber stuff, that. We're catching up on the latest iPhone 3G buzz, and here's what we've got going on at the moment:

• Jonny Gladwell, better known as the first iPhone 3G owner in the world thanks to his perfect storm of location (New Zealand) and line position (first), has been outed as a plant for New Zealand's Yellow Pages. Turns out the guy was hired by the directory service to see if he could "survive" the brutal multi-day sitting experience using nothing but -- you guessed it -- the Yellow Pages to get by. Ironic that you don't need a friggin' Yellow Pages when you have an iPhone, isn't it? Hmm, Jonny?
• Portelligent has sacrificed an iPhone 3G to conduct perhaps the most thorough teardown thus far, finding some incremental improvements, largely to accomodate 3G and bring the design in line with the iPod touch, while carrying over a good deal of componentry that had no reason to be upgraded. Infineon and Toshiba had big wins here in the radio and flash memory departments, respectively.
• AIM acts as a conduit for sending text messages by allowing users to add phone numbers as "buddies." The iPhone has an AIM client. See where we're going with this? Yep, it's a cheesy way to avoid shelling out for a text messaging plan, if you want to go to the trouble of using AIM in place of the native SMS app.
• The plot thickens in the yellow screen issue. As we'd mentioned yesterday, Apple claims the warmer color temperature seen in the iPhone 3G was a purposeful attempt to make things prettier and sharper -- but now, Ars Technica reports that forcing an update in iTunes from the 3G's shipping firmware of 5A345 to the ever-so-slightly newer 5A347 pushes things a little bit back toward the blue end of the spectrum. So what's it gonna be, Apple?

[Thanks to everyone who sent these in!]

For many people we encountered in line on launch day, the decision had already been steadfastly made: they'd be picking up a black iPhone 3G, and no one would sway them from their path (except maybe -- maybe -- if the black was sold out by the time their number got called). We've got to say, though -- after spending a great deal of quality time with both colors, the white definitely holds a special place in our hearts. It doesn't show smudges as easily, it makes just a little bit bolder of a fashion statement, and it tells passers-by, "yo, I sprung for the 16GB model" since the 8GB is only available in black. Don't get us wrong, the black's just fine, but we figured we'd throw out some food for thought on the subject.

So many of you are probably still in your jammies, reveling in the afterglow of yesterday's purchase, repeatedly opening Maps on your glossy new iPhone 3G and watching in exaggerated wonderment as your location is determined with frightening speed and accuracy. Others might be standing in a line snaking hundreds of bodies long into your friendly local Apple Store, reading this post from the comfort of your Motorola RAZR V3 and realizing that these are some of the last moments you'll be using a physical keypad. Still others are bemused by the fuss -- but whatever your stance on the phone, it's pretty hard to ignore the buzz that's floating around in the aftermath of day zero. Here are some of the goings-on we're tracking:

• The masses of humanity continue to collect. Massive stock shortages don't seem to be an issue (yet), but patience is not a virtue we hold dear to our hearts, so we really can't blame these people.
• Some buyers are reporting a yellow tint to their screens -- probably not enough to notice without another unit side-by-side for comparison, but real nonetheless. Of course, the first iPhone suffered from the occasional crappy backlight, bum touchscreen, or negative black, so we wouldn't be surprised if a few lame displays made it out of the factory floor for this model as well; we're following up with Apple on this and we should have more for you later today.
• We took the iPhone 3G on a decent drive around New York, and found its tracking to be impeccable. In a situation where we might have veered off the path following Google Maps directions, the blue blip kept us right on track. Despite what you've read (we're looking at you, Mr. Pogue), we see no technical reason that the aGPS can't provide turn-by-turn directions, provided there's software to take advantage of it.
• There are some complaints floating around about 3G reception, but it's been just fine on our review units around the world so far. How's it treating you out in [your location here]?
• iphone-dev has a video up of BootNeuter going about its business on a first-gen iPhone that's been upgraded to firmware 2.0, and the process is looking as slick and painless as ever. Unlockers who haven't shelled out for the 3G, commence your salivating.
• MobileMe seems like it's up for the moment, but don't breathe too hard lest you bring the whole thing down again.

Update: We just spoke with Bob Borchers, senior director of product marketing for the iPhone, and he had some very interesting info regarding the "yellow screen" phenomenon we've been hearing about. According to Bob (and Apple), the screen's color temperature has been purposely altered on the new iPhone to produce warmer, more natural tones, sharper images, and deeper blacks. The company says that 1st gen iPhone screens appeared colder and less defined, and they made some adjustments for the new models. In our opinion, what he says is right on -- the screens do look better on the iPhone 3G versus the older variety. What do you guys think?

So yesterday we posted a link to a version of the 2.0 iPhone firmware which was supposedly the release version of the new system software. After getting weirded out by some buggy behavior, then discovering that there were number differences between our version and the version shipping with new iPhone 3Gs, we got a little suspicious. Today, we noticed that the file which Apple made available for upgraders via iTunes sported a slimmer file size and separate designation (1,1 as opposed to the 1,2 of the previous iteration). The new version (supposedly the "official" version) is now available from Apple's servers -- so if you had any misgivings about that initial update, you can snag this and get a do-over. We've updated and restored on our phone, and we'll be honest -- it does seem a little bit snappier. Hit the read link for the file, and let us know if you notice any differences.

[Via MacRumors]