>> And look at Brian with his fancy new office. Check you out, man.
>> Brian: I know it's about time they recognized...come on, now.
>> Guess so. What've you got going on here?
>> Brian: I'm working. Can't you tell?
>> [Background music] Yeah...I see that. Well, I'm going to let you get back to work.
>> Brian: Um-um.
>> I'll catch you later, man.
>> Brian: Hey, could you throw that away in your own trashcan?
>> Ok. All right.
>> Brian: No. Actually, you know what? Since you're down there already, can you just empty out the whole trash can for me anyways?
>> Are you serious?
>> Brian: Yeah. Serious. Ooh.
>> I swear, I'm going to take his job one day.
[ Background noise ]
>> Brian: Brian Song here with CNN.com for the Apple Byte now. We know Apple threw a little wrench into our show, so we're going to jump right into what they announced, and we'll figure out how the rest of the show plays out. Now, first up, Apple will be giving out a free case for all people who own a current iPhone 4.
>> Every iPhone user is going to get a free case.
>> Brian: So that could be a bumper case or you could go online and order one from a variety of vendors that they have. The other thing that they're going to do is also offer purchasers of the iPhone 4 a full refund. It doesn't matter if it's outside of the return date. Now when Steve Jobs came out on stage, he really crafted this story to give you data points and really make you feel like you could understand the situation. They demoed Apple's phones, comparing it with like the Samsung Omnia II. They also did the BlackBerry Bold 9700 to show that other phones do have this symptom. Then they also pushed the fact that only .5% of all iPhone 4's do exhibit this symptom, and then on top of that, they want to show people that, well are people are really returning these things? Well a third of the people who returned the iPhone3 JES are returning the iPhone 4, so they really wanted to pound across the fact that this is really not happening, and sometimes on the Internet things appear bigger than they really are. But the bottom line here, are consumers going to be happy with what Steve Jobs said? We asked Josh Lowensohn from CNET.com.
>> Josh: I think people are going to be split. This is a big dividing thing. A lot of people, the critics of the phone, are going to say, "Yep, told you so," and a lot of people with the phone are going to look at their phone and say, "Ok, now I have to have a case so this will work right, and Apple just acknowledged that?" I think that's really troubling, but as an iPhone owner myself, you know, I do feel ok, the fact that they acknowledged it, and they're very upfront about what's wrong with it, and then compared it to other phones where this happens, too. So I think , you know, that's the best-case scenario we can have until iPhone 5.
>> Brian: So, there you have it Free bumper cases or cases for everyone. If you want to return your phone, you can do that as well. Now let's get back to the show.
[Music] What's up? I'm Brian Tong, and welcome to the Apple Byte for all the good things and bad stuff inside the world of Apple, and last week, yeah, was not really a good one for Apple, but could it get any worse? Well, Apple recently posted the first beta for iOS 4.1, and it appears that it includes a signal bar display corrections. You can see here that signal bars 1, 2, and 3 have increased in display size. Incredible. Now we all know Apple is infamous for ripping on other companies like Microsoft and Adobe. Well, now they're getting a taste of their own medicine. After Motorola and Verizon used a full-page ad in the New York Times to tout the Droid X's ability to be held any way you like. Then Microsoft COO, Kevin Turner, said, "The iPhone 4 might be their vista." Oh, snaps. You know the only thing lower than that in the geek world is like, "Make it a mama joke," or if your last girlfriend says you have a floppy drive. Not that I know. All right, in iPad rumor news, DigiTimes is reporting that Apple is planning to release a small version of its 3 million units sold and counting Tablet in the first quarter of 2011. Reportedly 5.6-inch and 7-inch screens are being ordered by Apple alongside the standard 9.7 iPad screen. The smaller screen iPads might be geared more towards the eReader market, but what will they call these things? I already have my iPad Nano right here. All right the iPhone 4 has some great features, and one of them is video editing with iMovies, so we're going to show you guys how to do it.
[ Music ]
>> Ariel: It's a new age my friends. TV's on the Internet, music is on your iPod, and now you can make mini movies using this. I'm Ariel Nunez for CNET.com, and I'm going to show you how to produce mini masterpieces on your new iPhone 4.
Now first you want to go into the iTunes store and purchase iMovie for iPhone. It's $4.99 but worth buying if you ever wanted to dabble with video editing but not quite ready to drop the big bucks on a desktop video editing program. Now when you first open the app, it'll ask you to choose a theme. There are five generic themes you'll have to choose from, and after choosing a theme, you can start dragging photos and movies that are recorded on your phone or you can record them directly from the app. You can trim down clips to your desired length by tapping on the clip in the timeline and dragging the yellow lines. By default iMovie plays its dissolves between each clip that you drop into the timeline. If you want to alter these, tap on the transition icon. Now you don't get too many choices here. You're pretty much limited to using the standard [inaudible] or the transitions that come with the theme you chose. And, finally, we're ready to add music. Now, iMovie lets you choose tracks from your music library stored on your iPhone. By tapping on the audio tab, you can sort through your music and drop them right into the timeline, and it'll show up underneath your video clips as a green bar. Now note that you can only choose one song per project, so choose your song wisely. And now that we're done, we can export our masterpiece. IMovie gives you three options to export your movie: medium, large, and HD. Choose a setting, and your movie will be exported directly to your iPhone's camera roll. Now iMovie gives you the option to upload directly to YouTube or to MobileMe, but the quality will be less than 720p. If you want to upload the full resolution, you'll have to transfer your video to computer first, and, ah yes, a masterpiece is born. Now there are other options for making movies on your iPhone, but if you want a simple barebones app that's easy to use and easy to learn, you might want to start with this one. I'm Ariel Nunez for CNET.com with your How To for making masterpieces on your iPhone.
[ Music ]
>> Brian: Ariel, how did you even get on there? This is my show.
>> Ariel: I'm the producer. I can do whatever I want to.
>> Brian: Yeah, right, sure you can.
>> Ariel: Hey, what's that behind you?
>> Brian: [Screaming] No. No. I don't like [inaudible]. Make it stop. All right. In more Apple gadget rumors, we didn't get to this last episode, but with September getting closer, that means iPod refreshes are on their way. You can always count on Chinese websites that claim they have the front panels for the next gen iPod Touch. Now online pictures show a hole at the top, quite possibly for a front-facing camera.
Now iFixit did the breakdown for Mac rumors to show that the iPhone 4's camera won't fit inside a current iPod Touch unless they change the form factor. Now we're confident we'll see some sort of camera action on the next iPod Touch, but FaceTime uses AT&T's network to initiate the call, so Apple's going to have to tweak the software if we expect to see this on the Touch. And in other iPod and music news, Apple's Lala.com acquisition a few months ago has sparked dreams of an iTune streaming service. NPD data recently surveyed close to 4,000 users, and 15% of the respondents would be willing to pay a minimum $10 monthly fee access to iTunes Content on multiple devices. Now if you apply those numbers to the 50 million U.S. iTunes customers that would represent $1 billion waiting for Apple in just its first year. The main obstacle to make this happen is getting the music labels on board, and those dreams aren't coming true any time soon. All right. That's going to do it for this week's show. Send your emails to the Apple Byte at CNET.com. I'm Brian Tong. Thanks for watching, and we'll see you next week for another bite of the apple. [Music]
>> Ariel: [Pause] What? No. No. No. Brian doesn't work here anymore. [Laughter] I don't know. I think he just found something new. [Background noise] That noise? I don't hear anything.
>> Brian: Ariel? Ariel?
>> Ariel: [Inaudible] I don't hear anything. Maybe that's you. Huh, that's weird. [Background noise] Yeah. Well, yeah. I mean, you know. Just working.