The unofficially official iPhone for China moved a little closer to being real…or at least some nicely faked images were made real and posted at Sina.com.cn.

Of course, lending credibility to the pictures, they were later pulled and replaced with a less revealing one. The iPhone is supposedly set to debut around September on China Unicom’s network, the second-largest operator in China.

One image shows the iPhone syncing. Note the iPhone is on China Unicom’s 3G network, and will never be on a Wi-Fi network. That was a main sticking point in negotiations. Along with that previously reported news, there are a few more details from Macworld.

The iPhone is supposedly a WCDMA model. It bears the seal of approval of Chinese environmental regulators for a period of ten years. Other rumors floating around suggest Apple will be paid around $440 for each phone, though selling price will be less. Supposedly, China Unicom has a multi-year deal and has guaranteed a minimum of one million units sold per year. However, it should be noted that officially Apple and China Unicom are still in talks. Still, it’s hard to disbelieve one’s eyes.

Days after the SMS vulnerability was reported, in which a single character could be used to crash or even take over an iPhone, Apple has released a single-purpose update.

The Knowledgebase Article makes it sound as potentially bad as it is.

Impact: Receiving a maliciously crafted SMS message may lead to an unexpected service interruption or arbitrary code execution

Description: A memory corruption issue exists in the decoding of SMS messages. Receiving a maliciously crafted SMS message may lead to an unexpected service interruption or arbitrary code execution. This update addresses the issue through improved error handling. Credit to Charlie Miller of Independent Security Evaluators, and Collin Mulliner of Fraunhofer SIT for reporting this issue.

All iPhones were vulnerable to attack, regardless of OS version. The only defense from having your personality rewritten or being possessed by a ghost was to shut the phone off, which was hardly practicable. While it’s always nice to see Apple give credit to the those who discover an exploit, it’s unfortunate it took the researchers going public to get the company to move on this issue.

Theres an app for just about anything…only on the iPhone. Words were all accustomed to hearing at the end of Apples iPhone commercials. Here in the UK, those words got Apple into hot water (again) with the Advertising Standards Agency (ASA), who have slapped Apples wrists twice before for misleading commercials. (Watch the ad here.)

The problem this time was from fans of Google Android who took offense to the claim that such app-tastic diversity and choice is available only on the iPhone. Because, obviously, Googles version of the App Store, Android Market is just bursting with choice, right?

TUAWs Mel Martin reports Apple responded to the complaint explaining their claim only on the iPhone was based on the understanding the App Store, “provided users with a unique experience unmatched by any other application marketplace, including the Android Market”.

According to Martin, the App Store currently offers 50,000 applications, compared with only 2,100 on the Android Market.

The ASA ruled in favor of Apple, concluding, “Because Apple had shown there were far more applications available for the iPhone than the G1 phone, and user experience of the iPhone and the App Store was distinct from its competitor, we concluded that the claim ‘only on the iPhone’ was justified and not misleading.

Going behind-the-scenes of a real iPhone app’s development, the latest installment takes a candid look at the economics of the App Store.

In my previous entry for the App Developer Diary, I was lost behind a mountain of paper-work. Since then, the rapidly growing mountain of tasks hasn’t changed too much — I’m still working on the game design document and concept artwork, but an array of new tasks have also joined the list.

The game I’m developing with Pear Computers is being created in our spare time. As such, we’re not keeping any records as to how long we’re spending on a given task. We’re working evenings and weekends, any random available hour, to push the project forward.

Although some smaller developers may work in this manner, this isn’t the way it would work at a big studio. A larger studio needs to know how much money they’re investing in an app’s development, ensuring that they’re staying on-budget and able to accurately calculate how much profit will be generated.

As we’re not keeping any official record, without running through e-mails and diary entries, we’re unable to accurately quantify the cost of development. So instead of generating a hasty approximation for the benefit of this diary’s readers, I spoke to Mills, founder of mobile content studio UsTwo, to tell me about the hidden costs of developing for iPhone.

Stepping Back

Founded in 2004, UsTwo specialize in mobile content development, their current largest client is Apple-competitor Sony Ericsson. Having grown to an impressive 43 staff, made up of designers, animators and coders, the London-based team are also opening studios in San Diego and Mlmo, Sweden.

When the App Store opened last Summer, Mills decided to experiment with developing for iPhone. “We do so much work for clients but, more importantly, we wanted to create our own apps. We’re a design-led company, the iPhone is a really exciting device and so we decided that UsTwo is the perfect space to do create apps.”

Released in February this year, UsTwo’s first project was Steppin, a tap ‘n’ drag game that tests the player’s digit dexterity. Looking back, Mills describes the project bluntly as, “how not to develop a game.” He explained that Steppin’s development cost an estimated $50,000, with it only generating around $1600 in profit.

The extraordinary development costs were really due to UsTwo’s drive to experiment and test different gameplay concepts. Mills explains, “We kept experimenting, trying to get it perfect. Rather than prototyping in Flash first, we went straight to iPhone and kept changing it as we went. Nowadays we’d never develop like that.”

Mouthing Off About Costs

With the studio’s next app, MouthOff, Mills felt that UsTwo had learned from their previous mistakes. “Before we began development, we looked at the apps that were doing well, like the fart apps, and decided to make something quickly with minimal effort and cost. It’s only made around 11,000, but it probably broke even. Development cost a tiny amount, however we spent time promoting it and have rolled out updates too.”

Despite MouthOff breaking even, Mills believes the real value for UsTwo is in the contacts the studio has made and the exposure they gained in promoting the app. MouthOff was even used in a video for Tanya Morgan. In a surprisingly candid move, Mills shared the sales figures and stats for MouthOff with me. Sales for MouthOff are revealed as averaging out at around 50 per day, the vast majority of which come from the U.S. and Great Britain.

Although he knows it could have been even more popular, Mills is happy with the general response to MouthOff, “In some ways it was a massive success and in other ways it wasn’t nearly as successful as it could have been. We made lots of contacts though and we’ve been approached by new clients too.”

Looking forward though, it’s clear that UsTwo has its eye on the App Store’s future. “The next wave in the App Store has to be coming soon,” Mills explains. He believes that, as there’s an over-saturation of duplicated app concepts, it won’t be long until people run out of novelty ideas. Hinting at the future, it’s clear that Mills sees UsTwo as a part of the next wave, “We’re in talks with a fair number of clients, discussing some interesting and genuinely useful apps.”

Only a few weeks in to developing an app for iPhone, it’s clear to me that this could be a potentially costly undertaking. Mills, with his straight-talking and utterly candid approach to development costs, gave me a serious reality-check. As a team, we need to take on UsTwo’s approach — building gorgeous, fun apps while keeping one eye on the books.

Next time: I wrestle with Apple’s Developer Center and try to test out the first playable prototype of our game concept.

The folks over at NewsGator have seemingly given up on consumer news feed syncing and have seceded to the superiority of Google Reader.

First it was NewsGator’s Windows syncing feed reader Feed Demon that got the switch from NewsGator syncing to Google Reader syncing. Now its the Mac client’s turn and the esteemed reader NetNewsWire has now switched syncing services too. Yeterday’s announcement by NewsGator states that its will be taking its NewsGator Online news feed reading and syncing service offline by the end of August. This leaves little time for NetNewsWire to fast track a stable switch to Google Reader syncing, but yesterday the first public beta of NetNewsWire 3.2 was made available.

There are a few differences between how NewsGator and Google Reader do their syncing. Notably Google Reader does not support folders within folders, which poses a problem for people who have organized their feeds in such a way. ‘Flagged’ items in NetNewsWire get transplanted as ‘Starred’ items in Google Reader, but the ’shared’ and ‘liked’ features are not supported yet.

Beyond the big change of where feeds are synced to, the new version supports sending articles to InstaPaper, sports a fancy new icon and has had a general code cleanup to boot. Being able to sync to NewsGator is not even an option anymore (due to NewsGator stopping their service) and neither is the previously available alternative option of syncing to .Mac or an FTP site. The Clippings functionality is also currently missing in action; they haven’t been deleted, but there is no way to access them.

Not all users are happy with the new beta, as can been seen on the NetNewsWire forum. NetNewsWire was originally a paid application, which was then turned into a free application by NewsGator. The new beta contains a relatively large ad embedded in the bottom left of the window. In the future, this can be turned off with a yet unannounced payment system of some sort, which of course has some people up in arms. While one can usually say “just stick with the existing version” this won’t apply beyond August when NewsGator shuts off its sync servers. But for a syncing service without any monthly fees, you’re always taking this risk. Personally, I’m happy to switch to Google Reader and can cope with ads. Developers need income too!

An updated version of NetNewsWires for the iPhone/iPod touch is also in the works that will support Google Reader syncing. The release date for this is currently unknown. For those that are interested, you can follow the progress of the new betas at nnwbeta.com and even follow the developer’s twitter account recounting the coding work.

Jonathan Ive wasnt always the Grand Overlord designer and demi-God at Apple. Before Ive re-imagined the Macintosh, other talented souls attempted to shape the next generation of Apple products with the clean industrial design for which the company is famous.

In the 1980s, Frog Design was charged with producing design prototypes for Apple — specifically the Apple IIc and some early models of the Macintosh. 9to5Mac reports that the founder of Frog Design, Harmut Esslinger, has published a book which features many of those early designs.

“A Fine Line: How Design Strategies are Shaping the Future of Business” is all about the role “smart” product design plays in the success of a business. As well as gorgeous pictures, the book includes background stories from Esslinger detailing the design and prototype process.

We worked closely with Steve Jobs and Apple’s developers to innovate computer usability and appearance, resulting in iconic products with no historic precedent.

My personal favorite is that funky laptop. Can you see elements in these prototypes that have influenced the Apple products we use today? Share your thoughts in the comments, and tell me if you agree those earbuds are just short of being classified as a torture device!