Always wise to wait for the release of that first service pack, right? That said, the fact that nearly 40 percent of business DO plan to upgrade by the end of 2010 is noteworthy. That’s a high level of adoption for a new OS, especially in the current economic climate.

Hello from Albert Hofmann. I understand from media accounts that you feel LSD helped you creatively in your development of Apple computers and your personal spiritual quest. I’m interested in learning more about how LSD was useful to you.

– LSD-inventor Albert Hofmann in a letter to Apple CEO Steve Jobs

Sources say Apple has formally requested a network access license to sell the iPhone in China, but the license is for a customized model in which Wi-Fi support has been disabled. If that proves true, then Apple (AAPL) has finally bowed to the demands of China’s Ministry of Industry and Information Technology, which has been insisting that the iPhone run only on cellular networks.

As Matt Mathison, an analyst at Wedge Partners, notes, that’s a hell of a concession for Apple, which had no desire to customize the iPhone for the mainland market. “Apple was hellbent on having the iPhone be wifi-enabled,” Mathison told BusinessWeek. “The Chinese government has been just as adamant that it not be.”

Mathison added that now that Apple has conceded to Beijing’s demands, the iPhone may launch in China as much as three months earlier than expected. “We now expect it to come before the Spring Festival in [January] 2010,” he said.

Today brings another Palm-related research note, this one from Pacific Crest analyst James Faucette. He claims that Pre sales are “robust.” According to Faucette’s channel checks, Palm is selling about 40,000 Pres per week, a “normalized” sell-through rate that he says will continue through August.

So who’s right? Piecyk or Faucette? Who knows? Until Palm (PALM) and Sprint (S) go on record with real sales metrics, we’ll have to use our imaginations. Which is pretty much what all these analysts appear to be doing right now, anyway. Honestly, they might as well be issuing research notes on jelly bean jar guessing games.

Oh, and for what it’s worth, Palm and Sprint are not willing to release sales numbers right now. Reached for comment, Sprint told me, “We’re excited by the response to Palm Pre. Demand continues to be strong, and we are working closely with our partners at Palm to meet the needs of every customer as quickly as possible.” And Palm told me me to call Sprint…

“Eric is obviously doing a terrific job as CEO of Google, and we look forward to his contributions as a member of Apple’s board of directors. Like Apple, Google is very focused on innovation and we think Eric’s insights and experience will be very valuable in helping to guide Apple in the years ahead.”

–Apple CEO Steve Jobs, August 2006

“Apple is one of the companies in the world that I most admire. I’m really looking forward to working with Steve and Apple’s board to help with all of the amazing things Apple is doing.”

–Google CEO Eric Schmidt, August 2006

Google chief Eric Schmidt has some words of advice for outsiders insisting he should recuse himself from Apple’s board of directors following the unveiling of Chrome OS, an operating system that will presumably compete with Apple’s Mac OS X: You can have my Apple board seat when you pry it from my cold, dead hands.

Speaking at the Allen & Co. Sun Valley conference, Schmidt, who has been an Apple director since 2006, said he sees “no issue” with him keeping his board seat. “I recused myself from iPhone because it was a direct competitor,” he said, acknowledging that he no longer participates in mobile phone discussions at Apple board meetings because of conflicts of interest. “But there is no change at the moment….I’ll talk to the Apple people. At the moment, there’s no issue.”

And if one should arise? If Apple (AAPL) should look askance at Google’s (GOOG) decision to launch its own OS? Or if the Federal Trade Commission probe into whether Schmidt’s seat on the Apple board of directors violates federal law picks up some traction? Well, does anyone really think that Schmidt won’t be able to keep his seat? C’mon.

As John Gruber noted over at Daring Fireball earlier this week, “I don’t understand why so many outsiders are concerned about this. If Steve Jobs and the other members of Apple’s board think Schmidt’s spot on the board poses a competitive conflict of interest, they’ll ask him to leave. If they don’t, then what’s the problem? Does [anyone] really believe he has a better grasp of Apple’s competitive position versus Google than Jobs? Does [anyone] think Jobs is too shy or polite to confront Schmidt?”

An interesting variation on the “membership drive” and one that’s gotten Tagged in hot water with New York Attorney General Andrew M. Cuomo, who intends to sue the company “for deceptive e-mail marketing practices and invasion of privacy.”

“This company stole the address books and identities of millions of people,” Cuomo said in a statement. “Consumers had their privacy invaded and were forced into the embarrassing position of having to apologize to all their e-mail contacts for Tagged’s unethical–and illegal–behavior. This very virulent form of spam is the online equivalent of breaking into a home, stealing address books and sending phony mail to all of an individual’s personal contacts. We would never accept this behavior in the real world, and we cannot accept it online.”

Tagged, for its part, claims this is all just a big misunderstanding. In a statement of its own, the company denied abusing its users’ personal address books, saying, essentially, it had their consent to do so.

“When our company tested a new registration process, we discovered that our ‘invite your friends’ language was confusing,” said Tagged CEO Greg Tseng. “…In no instance did Tagged access a person’s personal address book without their consent and no emails were sent without the person giving us permission. We realize that some were confused and accidentally agreed to invite their friends.”

Oh, and next time you register for a social network, be sure to read its Terms of Service–especially the portions that are presented in ALL CAPS. They might be important. From Tagged’s Terms of Service:

“E) Notice Regarding Commercial Email

MEMBERS CONSENT TO RECEIVE COMMERCIAL E-MAIL MESSAGES FROM TAGGED, AND ACKNOWLEDGE AND AGREE THAT THEIR EMAIL ADDRESSES AND OTHER PERSONAL INFORMATION MAY BE USED BY TAGGED FOR THE PURPOSE OF INITIATING COMMERCIAL E-MAIL MESSAGES.”

“I don’t think that’s likely. We’re looking and talking to a lot of laboratories and big companies around the world, like Sony and Samsung. We’re all working on wireless readers for books or newspapers or for magazines. I think they’re a year or two away being marketed in a mass way, high quality ones, and we’ll be absolutely neutral. We’re happy to have our products distributed over any device provided it’s only going to subscribers paying for it.”

— Rupert Murdoch says News Corp. isn’t working on a Kindle of its own

• Week ending June 6: 3.43 percent
• Week ending June 13: 4.57 percent
• Week ending June 20: 5.35 percent
• Week ending June 27: 6.63 percent

“Looking at the weekly percentage of U.S. searches for Bing, the search engine has grown at an average weekly rate of 25 percent for the month of June 2009,” Hitwise explains. “Adding in Live.com and MSN Search along with Bing, the combined search engines have grown at an average of 16 percent during June 2009. Bing grew faster than the three other prominent search engines for the month.”

Impressive. But sadly, not enough for Microsoft (MSFT) to make real headway. Because Bing actually ended up losing market share during June, slipping to 5.25 percent from the 5.64 percent it had in May (click on chart below). Meanwhile, Google (GOOG) gained share, rising to 74.04 percent from 73.66 percent in May. And Yahoo (YHOO) gained as well, starting out the month with a 15.55 percent share and ending it with 16.19 percent.

For Sprint, which is suffering from declining revenue and a thinning subscriber base, the move is a quick-and-dirty way of cutting costs and freeing up resources to focus on innovation and remedying the real and perceived issues with its services.

“This is about improving our customer experience,” Steve Elfman, head of Sprint’s network operations, said during a conference call this morning. “While we get the benefit of Ericsson’s expertise…we can focus our attention on bringing great devices, great services, great applications to them….We’ll benefit from the current scale and efficiency and expertise of Ericsson, and this will keep improving over time.”

“We estimate that sales of the Palm Pre slowed again over the past week compared to the prior week but likely remain over 30,000 compared to less than 40,000 in the prior week and our estimate of 50,000-60,000 in the week ending June 26th,” Pali analyst Walter Piecyk said in a research note this morning.

Now, to be fair, the holiday weekend may have negatively affected sales. And another report from Piper Jaffray suggests that the Pre is cutting into sales of RIM’s Blackberry. So there’s that. Still, if Pali’s estimates are correct, it’s pretty clear that demand is tapering off a bit.

Perhaps it’s time to ramp up the Pre’s marketing. Problem is, marketing costs money and Palm doesn’t have very much of that right now.

Answer: probably not all that bad. As Yankee Group analyst Joshua Martin notes, Chrome is hardly a Windows killer. “The Chrome OS isn’t the final bullet in the war between Google and Microsoft, rather it’s merely a shot across the bow,” Martin wrote in a note to clients. “Google’s targeting of netbooks will reduce Window’s market share of this high growth category, but the effect will only be slightly greater than the introduction of Linux-based netbooks.”

In other words, Chrome will prove more a nagging irritant to Microsoft (MSFT) than anything else–at least initially. And while it will presumably increase the use of Google’s (GOOG) Web services and applications, it’s not going to be unseating Windows, the darling of enterprise, anytime soon.

Writes Bernstein analyst Jeffrey Lindsay: “Although the Chrome OS will initially be released for netbooks, Google indicated that it could eventually be used to power full-size desktop systems. However, it is unclear how much traction Google could gain in this market, as the Chrome OS would presumably not be compatible with Windows based programs. Instead, Google would need to rely on people to more fully adopt web-based services (a long-dated proposition), or for software developers to port their applications over to Chrome OS.”

And if that’s the case, it’s going to be a long time before we see Windows application compatibility, which is key to this particular battle. Until then, Chrome OS will perform about as well as Linux has in the netbook market, which is to say, not well at all. “It will take quite a long time for Google to become a competitor to Microsoft,” said Gartner analyst Michael Silver. “In the enterprise, for example, over 70% of the applications used require Windows. And even at home, things like personal finance still require Windows. So, while I think this is a longer-term threat to Microsoft, it’s definitely not in the short term.”

According to retail checks conducted by Piper Jaffray analyst T. Michael Walkley, the BlackBerry slowed as the summer kicked off and AT&T (T) and Sprint (S) began peddling new smartphone offerings from Apple (AAPL) and Palm (PALM).

“Our checks indicated BlackBerry sales declined in June at AT&T and Sprint due to increasing smartphone competition, as BlackBerry sales appeared to lose share to the Palm Pre at Sprint and the new 3GS iPhone and older $99 iPhone at AT&T,” Walkey wrote in a research note to clients. “BlackBerry sales at T-Mobile remained solid, but Verizon sales were slightly weaker following the termination of the buy one, get one promotion.”

Unfortunate news for RIM (RIMM), but perhaps to be expected given the lackadaisical evolution of the company’s product line. New devices with advanced features, not incremental improvements, are what it’s going to take to compete the with iPhone and Pre, and soon, with the G2, the latest phone based on Google’s (GOOG) Android OS.

Consider this: A recent ChangeWave survey of over 4,000 respondents found that more than 14 percent plan to purchase a smartphone in the next 90 days. Of those, 44 percent said they plan to buy an iPhone, compared to 23 percent who said they’ll opt for a BlackBerry (click on chart below to enlarge).