OS Watch: Apple iPhone Updates Photos, Not 4G

Apple makes photos more fun: Apple's latest OS update to 5.1 was mainly bug fixes and minor changes, but photo buffs had a lot to be excited about too. Apple debuted a new iPhoto app designed for iOS to take advantage of the iPad and iPhone's multi-touch gestures. The app allows for advanced photo editing, browsing, sharing and, a celebrity's favorite function, airbrushing.

iOS 5.1 turns iPhone 4G?: Another iOS 5.1 feature that many iPhone owners who updated their AT&T Inc. (NYSE: T) iPhone 4S were surprised to see was 4G (!!!). Er, not so much. The switch to 4G, or "Updated AT&T network indicator" as Apple wrote in its list of what's new, was just a marketing decision by AT&T. The iPhone still runs on its high-speed packet access (HSPA+) network as it has since launch, but might trick a few into believing its one step ahead of rival Verizon Wireless 's version. Sigh. (See LTE Not a Selling Point for Apple's New iPad.)

Google locks developers in its wallet: In Google (Nasdaq: GOOG)'s new Play hub, there's only one way to pay to play, and that's through Google Wallet. Reuters reports that Google is banning third-party payment options like PayPal in an effort to promote its own service, but a Google spokesman tells The Verge that this has always been its policy with the exception of purchases of physical or transferable goods. (See Google Plays With Android Market Branding.)

Windows Mobile Marketplace closes: Microsoft Corp. (Nasdaq: MSFT) will be shutting down its Windows Mobile Marketplace come May 9. The two-year-old app store will be replaced by the new Windows Phone Marketplace (see the difference?) at that time to reflect its revamped mobile strategy.

No Ice Cream Sandwich for Samsung: Samsung Corp. is backtracking on its promise to update its Galaxy S II smartphone to Google's latest OS, Ice Cream Sandwich. The update was supposed to drop tomorrow, but now the company says it will come at a later, undisclosed date. The OS has been plagued with delays, making it hard for handset makers and wireless operators to make good on their promise of swift updates. Today, only around 1 percent of Android device run Ice Cream Sandwich. (See Google Preps for an Ice Cream Social.)

— Sarah Reedy, Senior Reporter, Light Reading Mobile