The State of the Mac Nation 2008, Part 4: Macworld Keynote Rumours and Predictions

This week is the Macworld Expo, featuring the main event we in the Apple camp are all looking forward to: Steve Jobs's keynote tomorrow at 9AM PST. Look for my live post tomorrow, where I'll be bringing you live meta-updates and commentary as the keynote develops!
In preparation for that event, we're bringing you a four part series entitled The State of the Mac Nation 2008. In this series, I've covered the current state of everything Apple related, and today, I will be delving into the rumours and predictions for Steve Jobs's keynote.
In case you missed them, the previous articles in the series were:
The State of the Mac Nation 2008, Part 1: Desktops, Laptops, & Professional Hardware
The State of the Mac Nation 2008, Part 2: iPod + iPhone
The State of the Mac Nation 2008, Part 3: iTunes + Other Apple Software
So without further ado, let's get down to business with the rumours and predictions!
iTunes:
The big elephant in the room with regards to iTunes that everyone is talking about is the impending arrival of movie rentals.
Bloomberg reports that movies from Warner Bros., Fox, Viacom, Disney and Lion's Gate Entertainment will be available at a price of $3.99 for a 24 hour rental, bringing the price of the service in line with Pay-per-view offerings by cable companies.
There are also rumours that in the face of Amazon having music from every major label DRM-free, that iTunes may drop DRM from its entire store. For reasons I went into in the previous edition of this series, I highly doubt this will happen - not because Apple doesn't want it to happen, but because the labels may not let them do it.
If they let Apple take the DRM off its entire catalogue, then Amazon would no longer have a competitive advantage, and Apple and iTunes would once again hold all the cards in its negotiations with labels over music pricing - a situation the labels certainly don't want.
Apple TV:
Now this would be strongly in the hopeful "One More Thing..." category: a new, reinvigorated and more powerful Apple TV.
The Apple TV (which I didn't even talk about in my previous articles - it's been that neglected this past year) hasn't seen any real updates or mention by Steve Jobs since its release; however, I don't think this is due to apathy on Apple's part to get into the living room.
The rumoured movie rental deals on iTunes point to a desire to enter the living room market, and it follows that Apple would want a way for people who rent movies on the iTunes Music Store to have a way to view them in their living rooms.
The old, technically inferior Apple TV model will not do, so I'm hoping for a brand new version of the Apple TV, perhaps named something completely different with a much more fleshed out feature list. Just what this feature list will comprise is anybody's guess, but I think we can at least expect direct iTunes Store purchasing on the new device, and in the "wish for the stars" category: a large hard-drive and DVR functionality.
Unfortunately, I may be reaching with my wishes for DVR functionality as Apple would have to develop their own whole set of software to handle the task, something I don't think they're willing to do at this point in time with resources focused on the iPhone.
On a side note regarding this feature: Apple could conceivably buy TiVo, in order to acquire the technology and patents necessary to implement this functionality. Apple certainly has the cash to do it, and if they're serious about going into the living room, I think it would be a smart move.
iPod + iPhone:
With the iPhone, we can safely expect the release of firmware v1.1.3, bringing with it the updates to Google Maps, the home page icons, and multiple SMS recipients.
A sneak peek at a new iPhone model with built-in 3G is almost a certainty, given the rumoured plans to release the iPhone in Japan.
Along with the new built-in 3G capabilities for faster data access, we can safely assume more storage will be added to the iPhone, and likewise we may see storage size bumps to the iPod Touch as well (though I doubt it, seeing as the iPod family was last updated in September, and a bump now would be too soon.)
The big news for the iPhone on the software side will come in the way of the official iPhone/iPod Touch SDK, which will see release in February. Several software developers, including Sling Media, are reported to have received the SDK early, meaning we could see the release of multiple third party applications tomorrow for the iPhone. Oh please let there be an instant messaging app!
As mentioned, the rest of the iPod family last saw updates recently, so don't expect much in the way of new iPods.
Apple Displays:
It's been almost 2 years since Apple's line of LCD displays has seen a technical upgrade, and they're well overdue for a redesign as well. We can strongly suspect new displays to either be announced at the keynote, or immediately following at the conference. Expect the new displays to go along Apple's new shiny metal, glass and black theme shown in the iPhone and iMac.
Macbook and Macbook Pros:
Last, but certainly not least, is the most popular rumour for this keynote: a new, ultra slim and ultra portable Macbook is said to be a sure thing.
Tentatively called the "Macbook Air" (due to the banners currently hung around the convention center, pictured at right), this new super thin laptop would not include an internal optical drive, and instead depend on an external drive for optical disc reading.
Also rumoured: the elimination of the ethernet port from the laptop. Ethernet ports are rather large and would prevent the laptop from being ultra skinny, so it has to go. Whether Apple has plans to provide some kind of dongle to add ethernet functionality, or depend solely on WiFi, that's something we'll have to see tomorrow.
Similarly, we can expect Apple to use the Mini-DVI port currently present in its iMacs for external display connections, requiring the use of external adapters to hook up to different displays.
Also rumoured is a move away from traditional hard drives to completely flash based storage; however, flash drives are still very expensive, so it's much more likely that Apple will still use traditional hard-drives in order to keep costs down. A possible candidate, as MacRumors points out, is the new 160GB 1.8" hard drive from Samsung, used in the iPod Classic 160GB model. This 1.8" drive would provide space savings over the current 2.5" drives the Macbook line employs while still providing storage at a reasonable price.
A few last little bits:
In the "I don't really care that much" category, Microsoft's new Office Suite for Mac with full Intel compatibility is due for release, so expect a mention tomorrow (at least the Mac version of Office is consistently better than the Windows version - thank you Mac Business Unit at Microsoft!)
The rumoured Blu-ray drives could still be announced, but since they were absent from last week's Mac Pro and Xserve announcements, I highly doubt it.
Also, the persistent Apple tablet computer rumours are hanging about again, but I highly doubt it will happen, one because Steve Jobs is known to hate tablet PCs, but also because their attention has been focused on the new "Macbook Air." If anything, we might see a larger than expected touch sensitive surface on the "Macbook Air."
Conclusion:
That's it! As always, be ready for anything tomorrow as Apple is notorious for being ultra-secretive and they could always release something none of us expect.
Remember to tune in tomorrow at 9AM PST/12PM EST for my live coverage of Steve Jobs's keynote!






3D iPhone glasses. Why?
I like your take on the AppleTV. Very interesting stuff. I look forward to the Keynote even more now!