The term "synergy" is a horribly over-used cliche in the tech world these days. Everyone loves to use it to describe the way in which one group, or product, or idea can spark grwoth in other areas and foster a larger ecosystem.

In the case of the App Store, however, it's a pretty valid label. On Monday Apple announced that the iPhone/iPod Touch App Store service had served up its two-billionth download. This comes just five months after hitting the one billion download mark and a little more than one year after the first Apps went on sale.

This amazing growth comes as the latest example of what has become a digital media powerhouse stemming from the iPod and iTunes.

How rapidly is the service growing? Well, in 2003 the iTunes store first began selling music online. Shortly after, sales for the iPod and iPod nano took off in full force. With more users on iTunes, the store sold more songs, and people became familiar with the iTunes environment.

Then in 2007 we get the iPhone, which is aided not only by its own hype, but also by the idea that it carried on much of the iPod's design and usability. Then 2008 rolls around and Apple opens up the App Store. Now, not only is there a massive user base from iPhone and iPod Touch users, but you also have customers accessing the store to purchase music and then finding that they can also buy apps on a similar interface.

In that way, one can virtually trace the 2 billionth App sale back to 2003 and the launch of the iPod. Quite an interesting evolution.

Normally we don't like to get too much into mocking Microsoft on this blog. This is a Mac blog, and we'd rather keep the discussion on Apple rather than resort to the fanboy-esque tactics of making fun of rival vendors.

Thing is, Microsoft just makes it so easy. Especially when it comes to advertising.

The latest gem asks users to throw their own "launch parties" for Windows 7. That's right, when the next version of Windows comes out, Redmond wants you to throw a big old house party to celebrate. Have friends over! Make bean dip! Marvel over the new interface improvements and snappier presentation.

We're guessing that when you whip out your laptop to show off a new operating system your guests will react only slightly more positively than the time you wanted to talk to them about a great deal you had on a timeshare up in the mountains...

If only Apple had thought of this first. We could have had Snow Leopard slumber parties! iLife-themed bar mitzvahs! Wedding receptions where the groom wears a black mock-turtleneck and the cake has only one large flower on the bottom.

And amazingly, the concept isn't the lamest thing here. Microsoft actually made a video for this thing. As one might expect, it's sort of like those "Magic Bullet" infomercials, only a lot less convincing...

It wasn't long ago that Steve Ballmer was laughing off Apple's iPhone ambitions, hinting not-so-subtly that Microsoft had more important matters to take care of than designing spiffy handsets and touch-screen devices.

Now, however, it appears that Microsoft is ready to take a swing at Apple's end of the portable electronics marketing. First, there was the Zune HD, the company's attempt to unseat the iPod touch. Now, there's word that Microsoft could be going after more Apple devices, including one that doesn't even officially exist yet.

Multiple reports are pointing to the development of two new devices from Microsoft. The first project, code-named Pink, focuses on the development of a Microsoft-branded handset which would join the growing list of touch-screen handsets which vie with the iPhone for a share of the smartphone pie. A fresh series of rumors now has two devices in the works, each set for unveiling at the CES conference in early January.

The second project,perhaps even more interesting, is said to be a tablet. The device is reportedly being done as a collaboration with several different branches, including the team behind Mcirosoft's touch-screen 'surface' device.

If that too were to make its debut early next year, we could be in for a very interesting 2010. Apple is also believed to be putting the finishing touches on a nifty touch-screen tablet of its own, and the prospect of major competing hardware releases from Apple and Microsoft hitting the market at the same time is sure to keep the gadget blogs, review editors and company fanboys tossing and turning at night with dreams of feature-length device comparisons and big sparkly "checklist" charts.

Much is being made of Microsoft's recent release of the Zune HD. The latest incarnation is said to be Microsoft's strongest effort yet to remake the Washington Generals of media players.

With its touchscreen interface and web connectivity, the new Zune is taking square aim at the iPod Touch. And it has a long way to go, as according to recent reports the Zune's market share is currently around 1.1 per cent.

Adding up the features, the Zune is a pretty impressive device. But will it be able to put a scare into the iPod branch at Apple? Probably not.

The problem with the Zune is that it merely measures up well with the iPod. Not great, just well. When you're trying to dethrone a company with a stranglehold on the market, "just about as good" simply doesn't cut it.

The biggest problem Microsoft has is the lack of a "killer app" with the Zune HD. There's simply nothing about it that puts the Zune HD head and shoulders above the iPod and makes consumers sit up and take notice.

By contrast, let's look at Microsoft's other consumer electronics outfit: the Xbox. When Microsoft entered the market, it faced a dominant force in the Sony Playstation similar to the iPod in the media player field. However, with the Xbox Microsoft had a distinct advantage in its exclusive distribution deals, most notably the Halo franchise. While the products stacked up pretty equally in other terms, the Xbox had the one game that everyone wanted, and that drove users away from Sony.

In this case, however, there simply is not a compelling reason to jump ship from the iPod. iTunes is the dominant force in online music, the Zune software store is but a fraction of the App Store, and the unique features of the Zune are little more than novelties to most buyers.

Bottom line? Until Microsoft can find a way to make the Zune more than "just as good" as the iPod, that market share won't be making much of a jump any time soon.

Business users of older iPhones and iPod Touches could be in for a nasty surprise if they decide to update to the latest OSX for iPhone 3.1.

The point release - which is supposed to improve security, reliability and fix bugs - also stops all devices older than the brand new iPhone 3GS from accessing some Microsoft Exchange 2007 servers, according to reports.

Users are telling us that after installing the update, a message informs them: "Policy Requirement - The account [account name] requires encryption which is not supported on this iPod/iPhone". Although the encryption policy is a server side option, thousands of users have been successfully syncing to these servers for many months without problem.

Which leads us to conclude that Apple devices have been misleading Exchange servers into thinking that they are capable of carrying out the level of on-device encryption demanded by their system administrators, when they quite clearly are not.

The fact that Apple has been loudly extolling the virtues of the iPhone as a business class device while potentially compromising the security of companies all over the world is beyond irony. And any business that has decided to offer Apple devices to its employees for use with Exchange 2007 servers will now have a major headache to deal with.

The immediate solution seems to be either to turn off the need for on-device data encryption - which as anyone who has ever lost a mobile phone will agree is an entirely bad idea - or to upgrade every one of your iPhone-toting employees with a shiny new 3GS. Which is very nice for Apple's iPhone shipments and will make for some happy employees, but does nothing to improve business bottom lines in such troubled times.

The only other option is to 'downgrade' to OSX for iPhone 3.0. All very well if you know what you are doing and a) have a suitable iTunes-recoverable backup, b) use Time Machine and are happy to revert your entire system to a previous state or, c) are willing to install a backup from a dodgy P2P or Usenet download.

It's not clear whether these older devices are capable of offering data encryption and can be fixed with a further update, as Apple is remaining tight-lipped about the problem.

But unless the Cupertino company wakes up and smells the cappuccino, it will do untold damage to the fragile relationship it has built with the few companies brave enough to dip their toes into Apple iPhone waters.

With much of the marketing surrounding the release of Snow Leopard relying on promises of Exchange support out of the box, we have to wonder whether Apple has betrayed the trust of business users once too often.

Well, another Apple "special event" product release has come and gone. And while those out in Macland who were pining for the unveiling of the MacTab went home disappointed, there were some good moments in the presentation and some cool products to look forward to. A few of the highlights...

Steve Jobs returns

Okay, so he has been back as the head of Apple for some time now, but today Jobs actually came out and gave a full 90-minute keynote. Granted, Phil Schiller took a bit of that time, but the investors had to be a bit relieved to see Jobs well enough to do the whole on-stage thing.

Jobs also for the first time spoke on his liver transplant and urged everyone to register as an organ donor. A class move.

iPhone 3.1

Wednesday's event was mostly focused on the iPod and iTunes, but there was some good stuff for the iPhone as well. The 3.1 update adds pre-made ringtones and a new genius feature for the App Store.

Perhaps most important, the update contains numerous stability and security fixes. And having a safer, more stable device is always a good thing, particularly when said update is free.

Bigger, cheaper, faster

The meat of the update was an overhaul for the iPod line. For most of the devices, this meant capacity upgrades. For the iPod touch, this also meant a price drop. You can now get your hands on an 8GB touch for just $199.

Additionally, Apple bumped up the processor speed for the Touch, presumably the same chips powering the new faster iPhones. Seeing as how Apple is now pitching the touch as a gaming console to rival the Nintendo DS and Sony PSP, they'll need all the horsepower they can get.

An iPod for creeps

Apple touted the new camera-equipped iPod Nano as a portable video camera for the YouTube crowd; an easy way to shoot and share video on a compact device. The more paranoid of us saw another way for creepy folks to shoot video on unsuspecting subjects. The next time some weirdo on the train is fiddling with his iPod, you may want to check his line of sight and adjust your garments accordingly.

Seriously though, the reception for the camera-equipped Nano could be worth paying attention to. The disc-based iPod Classic is already fading away, and with phones sporting increased storage capabilities, the Nano may soon find itself fending off mobile phones. Being able to match features could help keep sales up. It's also worth noting that the only real difference between a Nano and a conventional cell phone is the calling function. Perhaps we're seeing the first steps in the transition to an iPhone Nano?

Now that Snow Leopard is out and about, much is being made of the anti-malware features in the new operating system. The company has put controls in to recognise and remove a pair of known Mac trojan attacks.

First off, let me say that Apple without a doubt made the right move here. The flow of Mac malware is at a trickle, but could begin to really pick up if attacks are successful. While the rate of new trojans is still slow, Apple can stay on top of new threats and provide users with a decent level of security. The company may be able to nip the issue of Mac malware in the bud for at least a while.

However, the new protections are not really AV, as many third-party vendors are pointing out. Perhaps feeling the heat a bit, security vendor Intego has posted a laundrey list of some of the things Snow Leopard's protections can't do, such as repair infected files, scan DVD and USB drives or prevent malicious .mpkg files from executing.

So if you're the type that really, really wants to be secure, then you'll still want to stick with your AV package. If, however, you're amongst the majority of Mac users that rely on safe practices and common sense to stay safe, this will be a welcome bit of extra protection against the few Mac malware threats that are out there.

According to a report from Piper-Jaffray's Gene Munster, the exclusive carrier deal that Apple inked with AT&T is nearing its conclusion, and the analyst is suggesting that as early as 2010 could see the handset liberated and offered for several carriers.

Munster's thinking is that Apple has grown weary of trying to lure potential customers to a new handset and instead has decided to offer it to any carrier that wants to pay the price for the iPhone. In doing so, Munster believes that Apple can take a much larger share of the overall handset market.

There could be another angle here, however. Perhaps Apple is looking to ink a new, even more lucrative exclusive deal. Rather than make it free to everyone, perhaps they will ask carriers to bid against one another and achieve a ridiculous mark-up/subsidy figure on each handset from a telco desperate to take (or keep) the millions of iPhone users.

Then again, maybe Apple will go ahead and ask a ridiculous subsidy price, open up the iPhone to multiple telcos and sell even more.

Regardless, things are definitely looking up for Apple's one-button superstar right now.