Business

Apple dinged on environment again

Posted on May. 9, ’08, 9:03 AM PT by Dan Moren

Category | Business

Despite Apple’s big push last year on environmental issues, it seems that the green community isn’t that impressed. While Greenpeace marginally raised Apple’s ranking on its latest scorecard, non-profit Climate Counts has a few choice words to say about Cupertino’s stance on the environment.

In their most recent scorecard, the organization ranks Apple at the bottom of the list for electronics companies, with an 11 out of a possible 100, deeming them “a choice to avoid for the climate-conscious consumer” (we say bravo for the catchy, alliterative verdict). Even second-to-last Nokia scored a 37, and IBM led the pack with a 77. As with Greenpeace, a lot of Climate Counts’s criticisms concern Apple’s lack of transparency on environmental issues, something the company has been improving upon slowly.

It was a year ago last Friday that Steve Jobs posted the A Greener Apple memo, in which he promised that Apple “will be providing updates of our efforts and accomplishments at least annually.” And yet, all is quiet from corporate HQ. I think it’s about time for the company to deliver on that promise, at least.

More on Apple gobbling up PA Semi

Posted on May. 8, ’08, 8:47 AM PT by Dan Moren

Category | Business

Steve Jobs does not mess around. When the man wants a bag of chips, he buys a chip company. Disappointed to find that PA Semi does not in fact make Fritos, Jobs and co. decided to make lemoade by asking them to design some microchips for an Apple-branded toaster or something.

But why buy the company in the first place? The EETimes sheds some light on what went into the decision. Apple, which was allegedly an investor (potentially anonymous) in PA Semi before the acquisition, wanted the company to design a chip for them, but PA Semi had already exhausted their venture capital funds. At which point, Steve Jobs apparently sighed, beckoned over his manservant, and had them pay off the rest of the investors in solid gold ingots he has trucked around with him (why do you think he needs a private jet?).

Of course, that still leaves the burning question of what precisely the requested chip is for. Given Apple’s close ties to Intel for the Mac and the fact that PA Semi previously worked on PowerPC chips, it seems unlikely that it will be for anything in that line; much more likely are products in the consumer electronics division. Or, just maybe, something that we haven’t seen yet.

Google CEO’s heart may be in conflict

Posted on May. 7, ’08, 8:26 AM PT by Dan Moren

Category | Business

Eric Schmidt, the CEO of Google, is one of Apple’s most prominent board members, but Arik Hesseldahl of Business Week wonders if the search company head will be able to keep his seat on the board with the increased competition between the two entities, especially when Google’s mobile phone initiative, Android, launches later this year.

While on Apple’s board, [Schmidt] already recuses himself from discussions that pertain to the iPhone, according to published reports. But exactly how effective a director of Apple can he be if he’s not allowed to know proprietary information that pertains to the product that brings in as much as one-third of Apple revenue?

The issue at stake here is conflict of interest: as an Apple director, Schmidt is responsible for making decisions in the best interests of Apple—but as Google CEO, he needs to do the same for them as well. And if Android becomes a serious competitor to the iPhone, then this problem will quickly move to the foreground, and the board may have to consider whether or not Schmidt will be able to remain.

Personally, we love Apple and Google being the bestest of buddies—they seem to get along well and have similar ideologies about designing good products, and Schmidty’s presence on the board is no doubt part of that. We’d be sad to see him go, if that’s what it came to, and for that reason—and that reason alone—we hope Android dies a quick, quiet death. Sorry, GOOG: it’s nothing personal.

Macs in business: Making the case

Posted on May. 6, ’08, 5:36 PM PT by Dan Pourhadi

Category | Business

The other night I got into a fight—I’d like to call it a debate…but no, it was a fight—with my cousin about deploying Macs in place of generic PCs in a business, in this case to a media/web team within a Windows-dominated corporation.

I’ve written about Macs in the workplace before, and how the platform is making inroads to the corporate world because of increased (sometimes fluid) compatibility, stability, efficiency, security, and other words ending in “y.” Apple’s switch to Intel processors has allowed for effective virtualization of Windows and has also made it easier for programs to be ported to OS X; and better networking and ease-of-use now make corporate integration far less hassle-prone than it’s been in the past—not to mention the ubiquity of the iPod and other Apple products in the consumer market.

The counter-arguments I was presented with seemed to fall in line with the same’-ol’ same-ol’ perception of Apple and the Mac, and the Mac’s capacity—or lack thereof—to work as an effective member of a corporate tech setting: the Mac is slower, its compatibility stinks, mission-critical business apps aren’t cross-platform, there’s some kind of intense and productivity-inhibiting learning curve, and it’s impractical to support a second platform in a mono-platform environment. Or, in other words: It’d be too much work to do it now, so it’s not worth it.

These arguments, to me, reflect what’s wrong in general with the classic corporate approach to and understanding of technology.

Click on to read some of my ramblings…

Apple gaining on Microsoft in cash money

Posted on May. 5, ’08, 9:20 AM PT by Dan Moren

Category | Money

You know, I think I’m doing pretty well when it comes to saving: I don’t spend a lot of money, I’ve got some investments, and I’ve put some money away for retirement. But just when I’m feeling pleased with myself, I find out that Apple’s got almost $20 billion in the bank. Among big tech companies, that puts Apple in the number two three spot behind their favorite rival, Microsoft, whose own piggy bank is stuffed to the gills with over $26 billion, and networking giant Cisco, with $22.7 billion. In third and fourth fourth and fifth place are Google and IBM, both with about $12 billion.

That’s a whole lot of cash. But what exactly can Apple do with $20 billion? Well, aside from anything it wants. Over at the Seattle Post-Intelligencer, Todd Bishop discusses the differences between how Microsoft and Apple treat their cash reserves.

Apple has historically built its business from the ground up, preferring smaller strategic acquisitions of technology and talent. If the company continues to follow that pattern, that means it’s not likely to reduce its cash pile through a blockbuster deal.

Meanwhile, Microsoft has engaged in stock buybacks and dividends. Not to mention, their cash is a little safer now that the proposed Yahoo merger is out of the question. Apple has not traditionally gone down these roads, partially, as Bishop points out, because of Steve Jobs’s penchant for financial stability given Apple’s ups and downs in the past.

For all the talk of Apple buying huge companies like Adobe or Yahoo, I think they’re on the right track with their smaller, targeted purchases (i.e. PA Semi) and pumping money into their own R&D budget, while keeping the vast majority of their cash on hand just in case. Think different? Sound off below.

Update: Seattle P-I later updated their story to add Cisco, who has almost $23 billion in cash reserves, so we’ve updated as well. Because all the cool kids are doing it.

As hostile as running away with your tail between your legs

Posted on May. 4, ’08, 6:30 PM PT by Dan Pourhadi

Category | Business

Well, the verdict is in: Microsoft is not going to pursue a hostile takeover of Yahoo, despite all the vagueness and double-speak that made a purchase seem so damn inevitable.

This comes after months of back-and-forth on acquisition negotiations, with Microsoft asking nicely, and Yahoo saying “stuff it,” and Microsoft asking not so nicely, and Yahoo covering its ears and yelling “la la la” until Microsoft finally gave up.

The Redmond software giant made the announcement yesterday in a press release soaked with the tears and squashed hopes and dreams of CEO Steve Ballmer.

“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 Ballmer.

Can you feel it? Can you feel the despair? Can you feel the rejection?

I can. :-(

(And I bet Yahoo’s shareholders are going to feel it tomorrow, too.)

[via Silicon Alley Insider]

Microsoft may go hostile on Yahoo…right after lunch

Posted on May. 2, ’08, 9:03 AM PT by Dan Moren

Category | Business

As a special treat, we now bring you an excerpt from MacUser’s upcoming first published collection, The Zen of Steve Ballmer. The Wall Street Journal talked with the Microsoft CEO, including asking him about a potential hostile takeover of Yahoo.

“With the right circumstances it’ll happen. Without the right circumstances it won’t happen,” said [Ballmer].

After that profound observation, a loud gong was sounded, but Ballmer quickly explained that merely meant that his lunch was ready. His lunch of pure, unsullied souls. Topped with a chipotle spread and a little lemon. Mmm.

Word on the street says that were Microsoft to launch a hostile bid on Yahoo, it could happen as soon as today. In fact, it may be happening as you read this. If you listen very quietly, perhaps you will be able to make out the distant ringing of the gong that indicates Ballmer is once again on the warpath.

[via Macworld]

Adobe drops restrictions on Flash, AIR

Posted on May. 1, ’08, 10:44 AM PT by Dan Moren

Category | Video

The battle for Internet video continues. Not satisfied with the dominating presence of Flash, Adobe is making moves to spread their influence even further. Their latest thrust in the constant lunge/riposte is the Open Screen Project, which hopes to help extend the presence of Flash and Adobe’s AIR framework to all the devices you use to get on the Internet: your computer, your set-top box, your microwave, etc.

Among the partners Adobe has lined up are device makers like Samsung, Motorola, Sony Ericsson; hardware component makers like Marvell, Intel, and ARM; content producers like BBC, MTV Networks, and NBC; and networks like NTT DoCoMo, Chunghwa Telecom, and Verizon Wireless. Sure, that’s a lot of names, but come on: companies will put their name on pretty much any initiative or alliance that gets bandied about. Where’s the beef?

What’s really important here is that Adobe plans to remove restrictions on the use of Shockwave and Flash formats, publish the device porting layer API and the Adobe Flash Cast protocol, and remove licensing fees for Flash Player and AIR. While Adobe will still be holding back some proprietary info, such as their own implementation of Flash, these developments will significantly lower the barrier of entry for those looking to support Flash video on other devices.

We notice Apple is absent from the list of companies, which is little surprise, since they’re still intent upon pushing MPEG-4/H.264 as the future. Still, in theory, there would be nothing to stop them from creating their own Flash player for the likes of the iPhone and iPod touch, or any other devices they happen to have—you know, if they wanted to.

[via Macworld]

Warner Bros to release iTunes rentals same day as DVD, Blockbuster totally screwed

Posted on Apr. 30, ’08, 5:35 PM PT by David Dahlquist

Category | Business

Hear that sound? That’s Blockbuster’s coffin being slowly lowered into the ground as their sole customer incentive (DVD rentals before On-Demand availability) goes up in smoke, at least for Warner Bros. releases.

The prophetic Dan Moren noticed an odd trend about a month ago in which iTunes movie rentals released by Warner Bros. were becoming available for download significantly sooner than Apple’s stated 30-day policy. It looks like he was on to something, as Warner Bros. chief executive announced today that they will release movies for on-demand systems like Comcast’s and yes, Apple TV, on the same day they are released on DVD from here on out. Rejoice!

While the film industry at first seemed worried that online rentals would eat into DVD rentals, it seems that offering same-day releases on the internet only cuts into DVD rentals by 3-5 percent. Ironically, internet rentals also seem to increase DVD sales as well. My condolences to the brick and mortar rental industry. Looks like you guys are going the way of the record store.

[Via Gizmodo]

Yahoo thumbs nose at Microsoft acquisition deadline

Posted on Apr. 28, ’08, 12:39 PM PT by Dan Pourhadi

Category | Money

Microsoft wants Yahoo. Yahoo thinks Microsoft is nerdy and smells funny and would much rather be purchased by a cuter company who uses deodorant and plays football.

Why else do you think the search giant ignored Microsoft’s Saturday deadline for wrapping up an acquisition agreement the Redmond company really, really, wants?

You know the story: Microsoft wanted to purchase Yahoo for a price well-above its current market value. Yahoo said “No, not enough money.” Microsoft said “Yes, or else.” Yahoo said “La la la can’t hear you.” Microsoft said “Agree to it by Saturday or we’ll go hostile on your ass.” Yahoo said “Did you hear something? Must be the wind.” Microsoft said “You suck!” then ran to its room crying. Sorta.

Microsoft’s execs have been threatening to purchase Yahoo in a hostile takeover via proxies if the web company didn’t agree to the deal by Saturday. But as the deadline approached and Yahoo seemed unflinching, they toned down their rhetoric, going from “Big Tough Guy With Lots of Money” to “Defeated Child on the Playground.”

“Unless we make progress with Yahoo towards an agreement by this weekend, we will reconsider our alternatives. We will provide updates as appropriate next week, these alternatives clearly including taking an offer to the Yahoo shareholders, or to withdraw our proposal and focus on other opportunities, both organic and inorganic,” [Microsoft CFO Chris] Liddell said then.

Seems like the hoopla is finally coming to a head — either Microsoft will take the next steps in executing a hostile takeover, or they’ll give up altogether and pretend like it never happened.

There’s a great piece at the Mothership about the whole acquisition business that’s definitely worth a read — it reveals a lot about Microsoft’s intentions with the bid, and their surprise and frustration at Yahoo’s reluctance to accept. But once again it seems like Big Red is all talk and no walk — which, in this case, may actually be a good thing for users who don’t want to see the tech industry’s garbage disposal obliterate Yahoo’s great array of online services.