Can you feel the tingling in the air? If you haven’t found it already,you will. This is going to be the summer of love. I am talking, of course, about smartphone love. The serenades have already begun for the June 6 launch of the Palm Pre. Next week, Apple will reveal it’s next iPhone (you know MG is going to get one). Blackberry might come out with its second Storm by summer’s end. And the lovefest will continue throughout the year with launch after launch of new Android phones as well. It will be practically nonstop. I hope you can handle it.

The Palm Pre will be Twitter friendly. In a demo of the Palm Pre at the D7 conference a few minutes ago, Twitter search was showcased as one of its universal search options (along with Google and other search engines). Other features shown in the demo included the ability to sync the Pre to iTunes, download music over the air from the Amazon MP3 store, run multiple apps at the same time, and integrate third-party apps with other apps on the device such as the calendar. For instance, if you buy a movie ticket through a Fandango app, it can make an entry on your calendar.

About a half hour ago, Amazon opened up a new feature on the Kindle: the ability to read your notes and highlights on the Web. Readers have always been able to make notes and highlight text on the Kindle itself. Now those annotations appear on your account at http://kindle.amazon.com. Once you sign in, you can see all your notes.

While this opens up all sorts of possibilities, Amazon is taking a very conservative approach. You can’t share your notes with others. You can’t even edit them in your browser. All you can do is read them. That makes the feature little more than a Web archive of your notes and highlighted text snippets. It is a convenient feature, but why not enable sharing? Why can’t I share an excerpt with my friends on Facebook or Twitter (with the beginning of a quote and a short link)?

Silicon Valley electric car manufacturer Tesla Motors got another shot in the arm today from German auto giant Daimler, which took a 10 percent stake in the company and expanded its partnership with Tesla to equip future Mercedes-Benz vehicles with electric lithium-ion batteries. Mercedes has been testing Tesla’s batteries in a fleet of 100 smart cars, and is already moving into limited production. But with this agreement, Mercedes now expects to roll out its first battery-powered Mercedes-Benz in 2010, and offer battery-powered vehicles for all of its models by 2012.

The amount invested was not disclosed, but even more valuable to Tesla is the vote of confidence from one of the world’s leading auto companies. In a press release, Daimler proclaims: “Tesla is the only production automaker selling a highway capable electric vehicle in North America and Europe.”

On March 18, 2008, Steve Jobs was deposed by the SEC during its investigation of Apple’s stock option backdating scandal. The deposition was never made public until Forbes published it on Friday, after obtaining it through a Freedom of Information Act request. (Full deposition embedded below)

Jobs explains his reasoning for why he asked the board for mega grants of options for both himself and his top executives, but claims ignorance of the mechanics of how that was done after the board approved the grants themselves. (It was the falsifying of board minutes for a meeting that never occurred, not the backdating per se, that got Apple’s former general counsel Nancy Heinen into hot water with the SEC—this deposition was for a case against her). There aren’t too many revelations on the legal front in the document.

But the document provides the first detailed account of the incident from Steve Jobs himself in his own words. What comes through in the deposition is how Jobs sees himself and his’ fierce loyalty to those who work for him. For instance, after selling NeXt to Apple in 1997, his initial reason for acting as a consultant was to get “some of the NeXt people into some jobs where they could help Apple.” He himself was reluctant at first to take on the CEO role at Apple because he didn’t want the people at his other company, Pixar, to “think I was abandoning them.”

Then when it came time to reward his “ultra key” executives with one million options each, two of them were from NeXT. While he was taking care of his top lieutenants by trying ti “surprise and delight them with what a career at Apple could be”, he was “hurt” that Apple’s board didn’t do the same for him. So he had to have a little talk with them about swapping his 20 million then-underwater options for 7.5 million new ones, which they did.

I’ve excerpted some of the juicier bits from the deposition after the jump.

The iPhone now accounts for 50 percent of mobile Web traffic from smartphones in the U.S., according to an AdMob Mobile Metrics report released this morning. Over the past six months, the iPhone has taken share from Blackberry and Windows Mobile. In August 2008, the iPhone made up only 10 percent of mobile Web traffic from smartphones. During the same time, Blackberry’s share has gone from 32 percent to 21 percent (with the Curve and the Pearl coming in stronger than the Storm), while Windows Mobile has taken an even bigger hit, declining from 30 percent to 13 percent. Palm is also down to 7 percent from 19 percent six months ago.

The only other smartphone operating system that is showing gains in mobile Web usage is Android, which has captured a strong 5 percent share just three months after launch. The gains shown by the iPhone and Android show what is possible when phones are built with fully capable browsers and support a rich array of Web apps.

On a worldwide basis, smartphones running on the Symbian OS (mostly from Nokia) still dominate mobile Web traffic with a 43 percent share. But that is down from 64 percent in August. The iPhone has gone from 4 percent to 33 percent of mobile Web traffic on a worldwide basis. All the other mobile operating systems are down as well.

Earlier this month we reported that Cisco Systems had acquired Pure Digital Technologies, the makers of the popular Flip Video cameras. Today, Cisco officially announced the deal, which was for $590 million in stock. (We had the price at “north of $500 million).

Pure Digital will become part of Cisco’s consumer business group, which includes Linksys home routers and set-top boxes from its acquisition of Scientific-Atlanta. Cisco is calling the Flip cameras a new form of “visual networking,” whatever that means. In reality, the Flip is built for the YouTube generation. It is designed to take videos and immediately upload the to the Web. (Its output is a handy USB stick that flips open and plugs in directly to a computer). In other words, it is a device that encourages activities that consume a lot of bandwidth. As a networking company, Cisco wants you to use as much bandwidth as possible.

The mobile version of the Firefox browser, Fennec, is now officially in beta. It works only on the Nokia N810 Internet Tablet, but developers can also download it onto their computers. The Fennec browser is designed to make maximum use of the limited screen space available on mobile phones and tries to do everything possible to minimize typing.

It incorporates the Firefox “awesome bar,” which acts as both navigation and search bar. Start typing in a URL or search term and it auto-suggests web pages based on your past Web surfing habits. Various searches, including Google, YAhoo Answers, and Wikipedia, are one click away via links at the bottom. The browser also remembers all your passwords, just like Firefox. It supports Flash. And add-ons can be created for the mobile browser.

The user interface takes some zooming and panning concepts which were previously previewed by Mozilla Labs. Each Web page expands to fill the entire screen, but moving the page to the side reveals different controls, including bookmarks, back and forward buttons, tabs, and different tools.

When it comes to promoting new music, pay-for-play schemes are generally frowned upon. The practice, which involves music labels or artists paying radio stations to play their songs in heavy rotation, dates back to the beginnings of terrestrial radio. It got so bad in the 1950s that Congress had to intervene, but it keeps rearing its head in new forms.

Now, pay-for-play has hit online radio. Jango, a music streaming service which claims 6 million monthly listeners, is selling paid placement to labels and artists through a program it launched last week called Jango Airplay. For as little as $30, a band can buy 1,000 plays on Jango. Each song has links to buy the song at Amazon or iTunes.

Given the scandalous history of pay-for-play on terrestrial radio, it is not surprising that people are skeptical about whether it is a good idea to bring it to the Web. Matt Rosoff at Cnet sums it up:

This tarnishes the entire service with a distinct air of “suck”.

I’m not sure if this was moved up in response to leaked copiess of U2’s newest album, No Line On The Horizon spreading across the Internet, but the entire the album will be streamed for free at MySpace Music. The player in U2’s MySpace Music page featires a single, but if you click on the top album in the sidebar, you can hear the entire thing. MySpace says that the entire album will be streamed from February 20 to March 3, with links to pre-order it.

This is akin to Radiohead offering a free download of their album In Rainbows for a limited time, except without the download. It is good marketing, at it helps the band try to keep control over distribution. Although, that Bittorrent cat is already out of the bag. (The unreleased album leaked out and has been downloaded hundreds of thousands of times by fans who just can’t wait for U2’s perfectly planned release schedule.

Until today, one of the biggest drawbacks of Gmail is that you could not go through your emails when you were offline. Today, that changes. Gmail is finally going offline. Google is rolling out a Google Gears version of Gmail that will be available to users starting today in Gmail Labs.

When Apple hired away Mark Papermaster from IBM as its new senior vice president of hardware engineering for devices, IBM struck back with a lawsuit attempting to bar him from switching jobs. Citing his non-compete clause, IBM convinced a judge to order Papermaster to stop working at Apple until the dispute was resolved.

Well, now he can finally go make future iPods for Apple. The two companies have settled out of court. It kind of makes you wonder why companies even bother with non-compete clauses in employment contracts, especially when they are overly broad. More often than not, they are not worth the paper they are written on.

Twenty five years ago today, on January 24, 1984, Steve Jobs gave the first on-stage demonstration of the Macintosh computer to a packed auditorium. The technology was much different then, but it was the same Steve Jobs: a masterful showman able to make the latest jumble of electronics seem like it was capable of magic. Enjoy.

At the tail end of Apple’s quarterly earnings conference call today, COO Tim Cook (CEO Steve Jobs, who is taking a medical leave of absence, was not on the call) noted that 17 million iPhones have been sold to date. When he was asked about the rising competition from Android, Blackberry, and Palm, Cook made an oblique threat:

We approach this business as a software platform business. We are watching the landscape. We like competition as long as they don’t rip off our IP. And if they do, we will go after anyone who does.

We’re going to be seeing a lot more touchscreen computers. One of the features of Microsoft’s Windows 7 operating system is that it supports a multitouch user-interface (much like on the iPhone or a Tablet PC). To further the adoption of such touchscreen technology, Microsoft led a $24 million round in Israeli startup N-trig. Other investors included Aurum Ventures, Challenger Ltd., Canaan Partners, and Evergreen Venture Partners. In just the past two years, the company has raised $52 million.

The annual Consumer Electronics Show is going to be so boring this year that even Bill Gates is not showing up. He gave his farewell keynote (and his 13th) last year. This year, Microsoft CEO Steve Ballmer will try to rouse the crowd.

Ballmer is a high-energy guy who can be entertaining to watch, but Microsoft just doesn’t have anything exciting to announce this year. (Who does, right?). When Ballmer takes the stage at the Venetian in Las Vegas on Wednesday night it is going to be hard for the audience to stay awake no matter how much he yells at them.

Here’s what Ballmer will “announce” at CES: