What will Apple announce at WWDC 2011? We round up rumors in the wild

Apple is gearing up to kick off its Worldwide Developers Conference Monday morning, so it’s no surprise that the Apple rumor mill has been in full effect this weekend. We already know that Apple will discuss iOS 5, Max OS X Lion, and iCloud at WWDC, but the specifics have so far eluded the tech community. So far, we have what may be an early glimpse at the new notifications system in iOS 5, as well as word that Apple’s Time Capsule may get a major upgrade to work with iCloud.

The purported iOS 5 notification screenshot (right) comes from TechCrunch’s MG Siegler, who’s definitely hedging his bets on the image’s accuracy. It features a Twitter notification showing up on the top of the iPhone’s screen, instead of in a garish message in the middle of the screen. Siegler notes that this particular design would already fit in well with the current iOS workflow that puts tethering and mid-call notifications at the top of the screen. His sources say that the image has the “right idea.” Last week, we reported that Apple hired a jailbreak app developer who developed a replacement notification system for iOS, and last year Apple poached WebOS developer Rich Dellinger, who spearheaded that platform’s gorgeous notification system. At this point, it’s a given that Apple has been working on revamping its iOS notifications for some time, so you can rest certain that something new will be shown off tomorrow. Apple may also announce extensive integration between its Time Machine backups and iCloud, CultofMac’s Leander Kahney reports. An Apple source tells him that the company has developed a way to access files from its Time Capsule router and backup device (which is set up on a home network) through iCloud — potentially allowing users to access their files anywhere on iOS and Mac OS X devices (and presumably any computer with a web browser). Time Capsule will then be positioned as a network attached storage device (NAS) instead of just a simple way to backup files. Kahney says that a new version of Time Capsule, potentially powered with iOS and running Apple’s A4 or A5 chips, could be announced tomorrow as well. Kahney writes: “This service will also allow you to upload photos and videos from your iPhone or iPad to your Time Capsule. The media will be stored on the device and be made available for other devices to sync. iCloud is the “conduit” through which everything moves, the source said.” Meanwhile, John Gruber over at Daring Fireball adds a bit of clarity to the relationship between iCloud and Apple’s not-quite-secret cloud music streaming service (which is rumored to cost $25 a year). “Music storage is a feature of iCloud; iCloud is not a music service,” Gruber writes. He later notes, based on “fourth-hand information”, that we should think of iCloud as a replacement to iTunes, instead of just a replacement to Apple’s MobileMe service. Specifically, Gruber says that iCloud could erase the need to sync your iOS device with iTunes on your computer for media, apps, contacts, calendars, files and more. That certainly would cover some of MobileMe’s territory, and Apple could potentially just give up on MobileMe altogether.

Apple rumored to add system-wide Twitter integration to iOS 5

As rumors swirl of an upcoming image service from Twitter, a new report alleges that Apple will participate as a major launch partner with system-wide support in iOS 5. Various sources have confirmed that Twitter plans to announce a photo-sharing service, reportedly called Twitter Pictures, at the D9 conference later this week. TechCrunch now reports that Twitter has lined up Apple as a key partner for the upcoming service. Though a number of popular third-party image services already cater to Twitter users,

the company is reportedly moving to take more control of its product in hopes of creating a more consistent user experience. Of course, money could also be an issue, as sites like Yfrog make millions by selling advertising next to images uploaded by Twitter users. According to the report, multiple sources have said that Apple's iOS 5 will have Twitter's image service "baked into the OS" with a "Send to Twitter" option similar to the current integration of YouTube in iOS. "A tipster informs us that one trigger happy Apple iOS designer has already released a test link into the wild," Alexia Tsotsis said in a separate report for TechCrunch, though she declined to provide the link. John Gruber of Daring Fireball took things one step further, hinting at possible deeper integration. "So close to the bigger story, but yet so far," Gruber said of the report. "Imagine what else the system could provide if your Twitter account was a system-level service." Apple confirmed Tuesday that CEO Steve Jobs will unveil iOS 5 next Monday at the Worldwide Developers Conference keynote. iOS 5 is also rumored to include "deep" voice command integration. Last week, reports emerged that Apple will revamp notifications and widgets in iOS 5. WWDC kicks off Monday, June 6 at 10 a.m. Pacific Time. In addition to iOS 5, Apple will present Mac OS X 10.7 Lion and introduce its new iCloud service. Last month, sources told AppleInsider that the iCloud service, which is expected to replace the existing MobileMe product, will store more than just music. Apple is rumored to be pursuing licensing deals with movie and TV studios for the forthcoming service.

Apple Readies iCloud Service

Apple Inc. has reached deals with major recorded-music companies to help launch an online storage service, people familiar with the matter said, an offering called iCloud that Chief Executive Steve Jobs is expected to unveil Monday. According to these people, Apple has signed deals with Warner Music Group Corp., Sony Corp.'s Sony Music Entertainment and EMI Group Ltd. and expects to sign a fourth with Vivendi SA's Universal Music Group this week. The agreements will let Apple offer an easy way for

consumers to create and listen online to their entire music collections, without the time-consuming work of manually transferring or uploading songs. Many in the music industry see such offerings as a key next step in the evolution of digital media, in which music, and eventually video, is convenient and ubiquitous. Apple wouldn't be the first company to offer such a service, but its standing as the world's largest music retailer and more than 200 million iTunes accounts would give it clout that others have lacked. Google Inc. and Amazon.com Inc., have attempted to create similar services but so far haven't been able to agree on terms with the record labels. If Apple can be the first to do so, that would further tighten its hold over its users, making it more difficult for Google and Amazon to lure them away. The iCloud service, these people said, is expected to be more robust than those recently introduced by Google and Amazon, which don't have licensing deals with the major labels. A spokesman for Apple declined to comment. The Cupertino, Calif., company said Tuesday that Mr. Jobs, despite being on medical leave since January, will headline its annual developers conference next Monday in San Francisco. The company, breaking from a tradition of saying little in advance of public events, said it will unveil iCloud as well as new versions of Apple's mobile and Mac operating systems. Mr. Jobs's appearance at the conference may help ease concerns about his health. Mr. Jobs, who was diagnosed with a rare type of pancreatic cancer in 2004 and had a liver transplant two years ago, went on his second medical leave in two years in January. While Mr. Jobs has been more visible than the last time, speaking at the iPad 2 launch event in March and taking media interviews about Apple's location-data gathering practices last month, his scheduled appearance had been considered by Apple watchers to be an important indicator of his health and involvement at Apple. People familiar with the new iCloud service have previously described it as an online offering that would allow users to store digital files such as photos, music and videos in remote computer databases and access them from Internet-connected devices. Terms of the deals between Apple and the record labels would allow Apple to offer what is known in the industry as a "scan and match" locker service. Unlike services offered by Google and Amazon, which require users to upload their music libraries, Apple's new service would analyze the library stored on a computer and grant access to songs it recognizes without requiring an upload. Users then are able to listen to their music on compatible smartphones and computers, without copying the songs into each device's memory. But one hurdle still remains: music publishers, which control rights to the words and melodies of popular signs that are separate to rights to recordings. People in the music industry said Apple's talks with publishers remain less advanced, making it uncertain whether Apple would launch a new service without completed deals in place. Some of the biggest publishers expect at least to agree to terms with Apple by the end of the week, but others were less confident. In the past, music services have often treated music-publishing agreements as secondary concerns after record-label deals, but publishers have become more aggressive dealing with technology companies to try to ensure they are not treated as an afterthought. It is also unclear whether Apple, which has been working on iCloud for more than a year, plans to completely replace an existing offering called MobileMe. That Web-based service lets users store data in a central location and synchronize calendars and contacts among computers and other devices. MobileMe costs $99 a year. Apple on Tuesday also made available its iWork productivity suite, which includes its word processing, presentation and spreadsheet software, for the iPhone and iPod touch. Previously the software was only available for its computers and iPad. The move would let users more easily centralize their documents and access them from any device when iCloud launches. Absent from Apple's news release Tuesday, however, was any mention of a new iPhone model, which the company usually introduces at its developers conference, leading some analysts to speculate there may not be one this time.

Apple's iCloud music service to scan, mirror iTunes libraries(Photos)

Sources allege that the much-rumored streaming music service from Apple will scan users' iTunes libraries and mirror them in the cloud, but it reportedly won't be free. Bloomberg BusinessWeek reports that, according to people briefed on talks between Apple and the music labels, Apple has obtained new licenses for its so-called iCloud service that will allow the company to mirror individual iTunes music collections on its servers. Additionally, Apple will replace low-quality music files stored on users' har drives with higher-quality versions on its servers.

However, the convenience of increased access to one's music will come at a price, according to the report. While Apple's upcoming music service "may be a huge shift, it won't be free," wrote authors Brad Stone and Andy Fixmer. Label executives have reportedly said they are negotiating aggressively for profits in the cloud. Though specific details on pricing remain unclear, Stone and Fixmer speculate that Apple could bundle streaming music services into its revamp of MobileMe, which currently costs $99 a year. Fees for the service could also help labels "claw out some money" from pirated music, the authors noted.

A separate report suggested last month that the rumored service could be free at first, but would eventually require a fee. Sources close to the negotiations between Apple and the record companies corroborated earlier reports that Apple had reached agreements with three of the four major labels and is close to a deal with Universal Music. Music executives also alleged that Google had offered $100 million up front to the four major music labels for licenses, but negotiations stalled over the labels' concerns that Google doesn't do enough to protect copyright holders on Google.com and YouTube. Without the licensing agreements needed to sell music, the search giant eventually launched its Music Beta service as just a 'digital locker.' Rival Amazon launched its Cloud Drive online music streaming service in March without renegotiated licenses. Music industry executives, who were notified of Amazon's plans just days before the launch, have questioned the legality of a feature that automatically adds Amazon.com digital music purchases to customers' Cloud Drive accounts. Apple is expected to unveil its iCloud service in June at the annual Worldwide Developer's Conference in San Francisco, though the company reportedly has yet to finalize negotiations for new licenses with music publishers. Apple appears to have completed work on the service, with negotiations with rights holders standing as the final hurdle. 

AppleInsider exclusively reported last month that the iCloud name is being used by Apple internally on several different projects and will extend beyond just streaming music by syncing and storing other personal data such as bookmarks, email, contacts and iCal events. Apple reportedly purchased the iCloud.com domain last month from a Sweden-based desktop-as-a-service company for $4.5 million. The company's plans for iCloud are also believed to center around its massive data center in Maiden, N.C. Apple executives have said that the $1 billion, 500,000 square-foot facility will support the company's iTunes and MobileMe services. An Apple patent application discovered by AppleInsider last week hints at one possible solution for streaming music. According to the filing, Apple is investigating a method of storing portions of songs on devices such as the iPhone in order to allow immediate playback, while the device initiates a download from a remote location.