Here's a brief news catch-up of the latest Apple news:

iPhone Firmware 2.0 includes Chinese handwriting

Wretch.cc revealedconfirmed [1], Apple has included a handwriting input mode for the Simplified Chinese language on the latest beta of the iPhone's Firmware 2.0 which is coming in final release and for free to all current iPhone users in June.

When choosing this input mode, the virtual keyboard is replaced by a handwriting zone which allows the user to compose writing gestures with his finger.

Microsoft won't buy Yahoo

As announced on Saturday, Microsoft won't buy Yahoo, at least not for the moment. THe software giant had offered as much as $33 per share (or $47 billion) to buy the Internet company but Yahoo wanted a deal at $37 (or $53 billion) a share.

"Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal," said Steve Ballmer in a letter to Yahoo's CEO.

Changes in iTunes Movies

Apple announced last week it will be offering movies the same day as their release on DVDs and also activated the ability to purchase movies right from the Apple TV.

However, a report claims [2] Apple is losing money on movie sales as it pays $16 for each movie sold $14.99.