3G iPhone launch seen in 2nd quarter (Reuters)

NEW YORK (Reuters) – Apple Inc (AAPL.O) is expected to launch a high-speed wireless version of iPhone in the second quarter and produce as many as 8 million of the devices in the third quarter, according to Bank of America.

Apple shares closed up $2.76, or 2 percent, at $143.01 after the prediction in a research report about the third-generation phone from Bank of America analyst Scott Craig. Shares in AT&T Inc (T.N), the exclusive U.S. carrier for iPhone, closed up flat at $37.66 after rising to $38.39 earlier in the day.

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Dangerous Flaws Reported in Safari for Windows

Argentinian hacker Juan Pablo Lopez Yacubian has discovered two critical flaws in Apple’s Safari 3.1 browser for Windows, according to security firm Secunia.

First, Yacubian says, an error when downloading a .zip file with an overly long filename can be exploited to cause memory corruption. “Successful exploitation may allow execution of arbitrary code,” Secunia’s Web site says.

In addition, an error in the handling of Windows can be exploited to display arbitrary content while showing the URL of a trusted Web site in the address bar, the researcher reported.

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Red Hat: Open source benefits from U.S. unpopularity

San Francisco – The unpopularity of the United States has IT users in foreign countries happy to use open-source software, Red Hat President/CEO Jim Whitehurst said at the InfoWorld Open Source Business Conference in San Francisco on Tuesday.

This way, they do not have to pay “intellectual property taxes” to American companies, he said. Outside the United States, open source is seen from a public policy perspective as a fundamental good, Whitehurst said.

“I never thought I would say this but actually, being very unpopular in the world, as frankly the U.S. is these days, is a huge benefit to open source,” because people are resentful of sending billions of dollars back to the U.S. in IP taxes, Whitehurst said. They also do not want to pay it to Western Europe, he said.

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Web ad spending forecast revised with economic woes

NEW YORK (Reuters) – A leading marketing forecaster on Tuesday cut its projection for U.S. spending on online advertising this year, signaling that economic troubles are likely biting into corporate marketing budgets.

The revised forecast by eMarketer calls for U.S. advertisers to spend $25.8 billion online this year, which compares to its projection of $27.5 billion made in October.

EMarketer added, however, that online spending should still grow by 23 percent from 2007 and weather the economic downturn better than spending on other types of advertising.

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Apple to iPhone devs: Keep on developing for Jailbroken iPhones guys!

Fortune’s Philip Elmer-DeWitt is reporting that Apple has delivered a mighty slap across the face to many potential iPhone and iPod touch developers and turned what was good PR last week into what could be a PR headache this week.

By week’s end, almost everyone who had downloaded the SDK and offered to pay the $99 ($299 for enterprises) to become an official iPhone or iPod touch developer had received Apple’s polite but firm rejection letter:

“Dear Registered iPhone Developer, Thank you for expressing interest in the iPhone Developer Program. We have received your enrollment request. As this time, the iPhone Developer Program is available to a limited number of developers and we plan to expand during the beta period. We will contact you again regarding your enrollment status at the appropriate time. Thank you for applying.”

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Japan investigating Apple’s iPod (AP)

TOKYO – Japan is investigating a possible defect in Apple Inc.’s iPod after a reported case here of one of the popular digital portable players shooting out sparks while recharging.

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