A global supply manager for Apple, Paul Shin Devine of Sunnyvale, California, is being charged with leaking information about upcoming Apple products to suppliers in Asia for his personal financial gain, and he is also facing a civil suit from Apple.

Devine is said to have used his security clearance at Apple to provide particular suppliers with information on prototypes currently in development. The indictment says that the suppliers negotiated contracts with Apple based on the information leaked to them. The suppliers were not named in the indictment.

The FBI and IRS put the case together. Devine is being held by the U.S. Marshals Service and will be in a San Jose, California federal court on Monday.

Apple spokesman Steve Dowling had this to say:

Apple is committed to the highest ethical standards in the way we do business, we have zero tolerance for dishonest behavior inside or outside the company.

The real question at hand is whether or not this will have any impact on the hype and rumors that surround Apple prototypes. Although we try not to report on every available rumor (as that would be a significant task for a small blog like MI), there are a number of rumors that prove to be true. Given Apple’s extreme level of secrecy, this comes as no surprise that someone with this type of clearance had been leaking product information before a product’s official release.

However, many speculate that Apple does provide controlled leaks to news media to help build hype prior to a significant product release.

Apple has entered into an exclusive agreement with Liquidmetal Technologies to use their “amorphous” metal alloys. The agreement allows Apple to essenially use all of the intellectual properties of Liquidmetal Technologies blocking all other companies from access to the technology should it eventually be used in an actual product offering. Here are some of the exact details from the SEC filing:

On August 5, 2010, Liquidmetal Technologies, Inc., a Delaware corporation (“Liquidmetal”), entered into a Master Transaction Agreement with Apple Inc., a California corporation (“Apple”), pursuant to which (i) Liquidmetal contributed substantially all of its intellectual property assets to a newly organized special-purpose, wholly-owned subsidiary (the “IP Company”), (ii) the IP Company granted to Apple a perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in the field of consumer electronic products in exchange for a license fee, and (iii) the IP Company granted back to Liquidmetal a perpetual, worldwide, fully-paid, exclusive license to commercialize such intellectual property in all other fields of use (together with all ancillary agreements, the “Master Transaction Agreement”).

Liquidmetal’s technology claims are that of an “amorphous” metal design as opposed to a typical crystalline structure. The design is supposedly stronger, lighter, and resists against wear and erosion better than typical metals. These characteristics certainly line up with what Apple seems to be going for with their industrial design moves. I would not be surprised to see MacBooks made out of some “unique proprietary metal” that only Apple has the rights to sometime in the future.

Senior Vice President of iPhone, Mark Papermaster is no longer with Apple. Papermaster’s time with Apple was a very short lived 16 months. It would seem that the recent issues surrounding the iPhone 4 antenna may be the cause behind the change in personnel. Apple’s Bob Mansfield will be taking over the roll and duties of Papermaster.

If we assume this move was made by Apple and not Papermaster himself, it would be hard to be incredibly surprised. Apple’s largest PR nightmare in quite a long time has come from the most recent iPhone design. This move would also look good from a PR point of view by showing customers that Apple is serious about the quality their products by making sure they have the best people on their team to come up with them.

John Gruber of Daring Fireball (usually a quality source) says that Papermaster was indeed let go by Apple and did not leave on his own accord.

In today’s financial conference call for their 3rd fiscal quarter, Apple announced they had generated $3.25B in profits and a record $15.7B in revenue. The company shipped 3.47 million Macs during the quarter, a 33% increase year over year for Q3. The iPhone reached sales of 8.4 million, a 61% increase year over year, and also sold 9.41 million iPods during the quarter, showing an 8% decrease year over year. The iPad, which was launched this quarter sold 3.27 million units.

Here is what Steve Jobs, Apple’s CEO had to say about his company’s financials:

It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4…iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year.

Below are some conference call highlights:

  • CFO Peter Oppenheimer going over quarterly results: highest quarterly revenue ever, surpassing most recent holiday quarter.
  • iPod sales down slightly, but iPod touch up 48% year-over-year. MP3 player market share still over 70%.
  • Passed cumulative sales of 100 million iOS device sales during the quarter.
  • Cash and marketable securities up to $45.8B.

The call is available to listen to (as of this posting) on Apple’s web site.

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