Apple's North Carolina data center is expected to open this spring, and will support the iTunes and MobileMe services, the company said during its annual shareholders meeting on Wednesday, where AppleInsider was in attendance.

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In contrast to published reports suggesting Apple plans to release a smaller version of the iPhone this summer, sources have told The New York Times that Apple is not developing a smaller handset, though the company has looked into a cheaper version of the device.

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Rather than providing tens of gigabytes of cloud-based storage for hosting music and other files, Apple's new MobileMe service is likely to rely on the space available on individual users' machines, according to a new report.

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After bringing its iPhone 4 to Verizon Wireless, Apple will release iPhone 5 alongside a smaller, cheaper phone this summer, bundled with enhanced MobileMe services.

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The developer release of iOS 4.3 beta 2 includes mention of a new MobileMe-based Photo Stream picture sync feature, apparently part of a new Media Stream service, and includes versions of a standalone FaceTime and PhotoBooth app for iPad.

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The first iOS 4.3 beta this week includes references to a new "Find My Friends" feature tied to MobileMe, as well as two new iPhone and three new iPad models.

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Apple is looking to expand its iOS development team with new employees who will enhance the company's cloud-based services for devices like the iPhone and iPad.

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China Unicom today will begin offering customers the option of a contract-free iPhone 3GS. Meanwhile, Mac OS X 10.6.6 will be capable of searching the Mac App Store for apps to open unsupported file types. And Apple has launched iCal alerts on Me.com.

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Apple issued a routine security update to its QuickTime media player for Windows and Mac OS X Leopard 10.5.8 Tuesday. Meanwhile, Apple Chief Executive Steve Jobs has reportedly promised significant improvements to MobileMe in 2011 in an email to a customer.

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Apple on Monday announced that Find My iPhone (and iPad, and iPod touch) is now free to use without a MobileMe subscription, allowing users to locate their lost iOS device at no extra cost.

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Apple plans to release the iPad in several northern European countries soon, while error messages in the most recent iOS 4.2 golden master suggest the possibility of free MobileMe accounts for iOS users.

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Apple's legal team for iTunes and MobileMe services in Europe will be run by someone with a great deal of expertise on the digital music industry -- a senior vice president with Warner Music Group.

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Subtle changes to iOS 4.2 in the Golden Master released to developers Monday include the addition of volume controls and an AirPlay button to the multitasking bar and an option to access MobileMe with an Apple ID. Meanwhile, developers can now submit their iOS 4.2 apps to Apple for review.

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Apple announced Thursday that its new web-based calendar application for MobileMe subscribers has officially exited the beta stages and is now available to all members.

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Motorola announced on Wednesday that its subsidiary, Motorola Mobility Inc., filed a complaint with the U.S. International Trade Commission, accusing the iPhone, iPod touch and certain Macs infringe on patents.

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New support in the developer beta 3 release of iOS 4.1 allows users to make FaceTime video calls without needing a phone number or mobile service, strengthening the case for FaceTime support on iPod touch, iPad and Macs.

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Nearly a month after Apple added support for background audio playback from its MobileMe service to the free iOS iDisk app, a flurry of interest has swirled around the feature.

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Years after Verizon Wireless shunned Apple's iPhone because it wanted more control over the device, a company representative has acknowledged that the iPhone App Store was a "watershed" event in the mobile industry.

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Apple has launched its new beta V2 update of the MobileMe web-based Calendar, sending users announcements that allows them to opt into the new program, which brings shared calendaring and an iPad-like appearance.

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As usual, Apple's executives kept close to a carefully prepared script on the company's stellar financial results, being careful not to reveal too much about the company's future plans, including its data center cloud services and broader open support for FaceTime video calling.

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