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Leaked purported Microsoft retail plans show a talent for imitation

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Fresh from announcing its worst financial results yet, Microsoft’s attempt to regain relevance continues, and now more light’s been shed on its plan to launch a chain of “me too” stores to compete with Apple’s highly successful retail stores.

Gizmodo has published a PowerPoint presentation said to emanate from design and brand consultancy, Lippicott. These seem to show just how closely Microsoft’s planned stores will emulate Apple’s own. You’ll have an “Answer Bar” – just like Apple’s ‘Genius Bar’ – for troubleshooting your Windows machine (oh just imagine how busy they’ll be there – will anyone want to work in that position?).

You’ll have those Microsoft Surface table top computers dotted around in-store, a digital media wall with big video screens, and dedicated product areas for Windows 7, Media Centre, netbooks and more. You can even pay to host a party in one of these stores….

Gizmodo warns these slides could be fake, but given Microsoft’s talent for imitation, they could well reflect the vision for the beleaguered company’s retail outlet plan.

Frank Shaw of Waggener Edstrom commented on Gizmodo’s story on behalf of Microsoft, saying that, “No final decisions have been made,” but some early design prototypes are indeed in circulation, with the first stores set to open in autumn.

Bear in mind the background: Microsoft’s sales fell another 17 per cent in the just gone quarter as profits slid an astonishing 29 per cent. Sales fell to $13.1 billion, a billion short of analyst expectations and the second quarter of decline. Will a chain of highly expensive retail shops truly be enough for Microsoft to regain relevancy?

As noted by MacDailyNews, recall a 2004 BusinessWeek interview with Apple CEO Steve Jobs, who points out: “Apple had a monopoly on the graphical user interface for almost ten years. That’s a long time. And how are monopolies lost? Think about it. Some very good product people invent some very good products, and the company achieves a monopoly. But after that, the product people aren’t the ones that drive the company forward anymore. It’s the marketing guys or the ones who expand the business into Latin America or whatever. Because what’s the point of focusing on making the product even better when the only company you can take business from is yourself?

"So a different group of people start to move up. And who usually ends up running the show? The sales guy… Then one day, the monopoly expires for whatever reason. But by then the best product people have left, or they’re no longer listened to. And so the company goes through this tumultuous time, and it either survives or it doesn’t.”

Jobs then points out that the sales guy now runs Microsoft, Steve Ballmer.

Except Microsoft doesn’t seem to be selling like it used to, judging from its financial results. Meanwhile, Apple is preparing to upgrade its iPod range with huge online retailer Amazon now selling existing models of the media player at up to 13 per cent off normal price.

Tablet for 2010? AppleInsider agrees with Gene Munster

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Although they admit they’ve had a long history of Apple Tablet predictions (or "setbacks"), AI is now going with Gene Munster’s earlier prediction that Apple’s tablet will be released at the begining of next year…or perhaps later.  Said tablet will have an Apple/PA Semi ARM chip and look like this (note the watermark to denote that it wasn’t lifted from a design school):

This rendition (both the story and the image) is the latest version of their tablet series which extends back to 2004 and has had 61 iterations.

Walt Mossberg talks Windows XP -> Windows 7 Update

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"It will be frustrating, tedious and labor-intensive.   In fact, the process will be so painful that, for many XP users, the easiest solution may be to buy a new PC preloaded with Windows 7[or Mac?], if they can afford such a purchase in these dire economic times. In fact, that’s the option Microsoft (MSFT) recommends for XP users. (Conveniently, this option also helps Microsoft’s partners that make PCs.)"

http://s.wsj.net/media/swf/atd/microPlayer.swf

Many people ask why we post Mossberg videos. They are tailored toward novice computer users (probably not our demographic). However, he’s one of the smartest mainstream technology writers who was early to recognize the benefits of Apple’s products.  He’s also not afraid to cut through the BS PR speak of tech company CEOs.  He’s also right most of the time, even on his critiques of Apple.

After doing cartwheels down hallway, Kevin Turner quietly changes Microsoft Ads to reflect new Apple pricing

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According to Adage, Microsoft did, in fact change the advertising after getting the call from Apple legal.  Kevin Turner famously told people gathered at a Microsoft conference last week the Laptop Hunter ads were working:

And you know why I know they’re working? Because two weeks ago we got a call from the Apple legal department saying, hey — this is a true story — saying, “Hey, you need to stop running those ads, we lowered our prices.” They took like $100 off or something. It was the greatest single phone call in the history that I’ve ever taken in business. (Applause.) I did cartwheels down the hallway. At first I said, “Is this a joke? Who are you?” Not understanding what an opportunity. And so we’re just going to keep running them and running them and running them.

In the original version, Lauren at one point comes upon an Apple computer and pouts: "This Mac is $2,000, and that’s before adding anything."

"Why would you pay twice the price?" asks Lauren’s mom. "I wouldn’t," says Lauren, who ends up leaving with a $972 Dell laptop she suspiciously found later in the spot. 

In the latest version of the ad, that portion has been edited out. The original ad has been removed from YouTube and other sites by Microsoft, and replaced with a version (below) in which Lauren doesn’t talk about how much the Mac costs, but she does say: "It seems like you’re paying a lot for the brand."

NPD data this week revealed that of the $1000+ retail computer market in the US, Apple gets 91% of the revenue.  That’s up from 66% in 2008 when the Laptop Hunter Ads started running.

http://images.video.msn.com/flash/soapbox1_1.swf

Apple's iPhone-powered devices country sales estimates revealed

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Apple’s iPod touch and iPhones continue to lead the market in the US while becoming increasingly popular in Western Europe and Asia, the latest AdMob statistics reveal.

Freshly-published statistics for June 2009 offer a pretty good view on the distribution of iPhone OS devices by country. AdMob the world’s largest mobile advertising platform, uses its own network data in combination with Apple’s own disclosed figures to make its estimates.

The good news – and let’s face it it’s obvious, is that worldwide adoption of Apple devices continues to grow. North America remains a key market for Apple’s handheld products, you’ll find 58 percent of iPhone and iPod touch users there.

Western Europe and Asia represent 26 and seven per cent of Apple device users, respectively. The worldwide ratio of iPhone to iPod touch users in the AdMob network was roughly two to one in June; although this varied from region to region, this ratio has remained relatively constant over the last several months, implying a similar growth rate for both devices worldwide.

54 per cent of iPhone and iPod touch users are in the United States. Following the US, France, Germany and the UK each had more than five per cent of all iPhone and iPod touch devices. iPod touch users represent 38 percent of total iPhone OS devices in North America.

Requests from the Android OS increased 25 per cent month over month. Android has five percent worldwide OS share and is now slightly ahead of Windows Mobile for the first time.

AdMob’s June 2009 Mobile Metrics Report also offers an estimated breakdown of the number of iPhone and iPod touch devices sold in various countries. The company estimates that there have been 13 million iPhone and 12 million iPod touch units sold to date in the US based on user data in AdMob’s network.

This analysis is based on the 16.8 million unique users on iPhone and iPod touch devices on the more than 7,000 mobile sites and 2,500 applications in AdMob’s network in June 2009.
 

Seeking Alpha transcribes Apple F3Q09 (Qtr End 6/27/09) Earnings Call

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In case you missed the audio version, Seeking Alpha has gone through the trouble of transcribing yesterday’s earnings call.  Highlights:

– revenue of $8.34 billion and a net quarterly profit of $1.23 billion or $1.35 per diluted share

– Gross margin was 36.3 percent, up from 34.8 percent in the year-ago quarter

– Apple sold 2.6 million Macintosh® computers during the quarter, representing a four percent unit increase over the year-ago quarter

– Apple sold 10.2 million iPods during the quarter, representing a seven percent unit decline from the year-ago quarter.

– Quarterly iPhones sold were 5.2 million, representing 626%(!!!) unit growth over the year-ago quarter.

 

 

 

Clearwire opens up WiMax for Macs

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We know LTE is coming in the next few years and should be fully operational in 2012 or so (AT&T are very speedy with their rollouts) but we want some 4G wireless speed ASAP.  Fortunately, if you live in the right part of the country, you can have it now.

What’s the technology? Well, effectively it brings wireless internet access to a wide area, making it a hugely viable solution for those parts of the world which don’t yet have a mobile or fixed line communication infrastructure. Originally developed by Intel and partners, the technology is called WiMax, and is coming to the Mac next month.

US WiMax provider Clearwire will next month finally introduce client software designed to get Macs onto its WiMax service. Clearwire’s modems, which offer built in WiFi (which helps you get onto the WiMax network when indoors) but have until now only shipped with Windows drivers.

This changes on August 17, when Clearwire will begin offering a Mac driver as a free download for customers, according to Mike Sievert, chief commercial officer. He announced the news as the company opened up its WiMax service in Las Vegas. That network covers 638 square miles of the city’s metropolitan area and reaches 1.7 million potential customers.

Clearwire also offers WiMax services in Baltimore, Atlanta and Portland, Oregon, widening this to also include Chicago, Philadelphia and Dallas by the end of the year.

The Clear WiMax service delivers 3Mb per second (Mbps) to 6Mbps, with bursts as high as 10Mbps, according to Clearwire. It starts at $20 per month for home and $30 per month for mobile service, and combined plans are also available. A day pass costs $10.

What makes this potentially interesting for a wider church of Mac users is detailed within an FCC filing which emerged last year. Intel’s 5350 WiFi/WiMAX combo card fits into Mini PCI Express card slots – meaning Mac users could consider swapping out their WiFi card (as used in MacBooks and so on) for one of Intel’s new cards, new cards which combine WiFi and WiMax support.

If Mac drivers for WiMax debut next month, how soon will Apple users be tuning into WIMax? After all, in comparison with AT&T’s pretty punitive 3G iPhone to Mac tethering charges, where it’s available, WiMax offers better bandwidth at a competitive price.

Foreign travellers should benefit too, with deep and wide WiMax deployments emerging in Russia and many Eastern nations, including Taiwan. And India. And one day anywhere else were mature fixed line or mobile solutions aren’t yet fully set-up.
 

Apple, Toshiba reach half billion dollar flash deal

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Apple has agreed a half-billion dollar deal with Toshiba Corp for the supply of flash memory chips, as used in iPhones, most iPods and many of its laptops.

The computer company has made a $500 million prepayment to Toshiba in order to secure supplies. Toshiba is the world’s second largest supplier of flash memory, with Apple also sourcing same from the world’s largest supplier, Samsung.

The $500 million deal is “equivalent to about one quarter’s worth of Apple’s demand for flash memory”, Reuters explains.
 

Apple chief operating officer, Tim Cook, stressed the importance of the deal, saying, “We view flash as a very important component for us, because we use it in so many of our products.”  He noted that Apple uses 3% of the world’s Flash storage.

It’s not the first time Apple’s clinched a deal to secure flash memory supplies. Apple paid $1.25 billion in advance to Hynix, Intel, Micron, Samsung Electronics and Toshiba to secure supplies of the component in 2005. That deal extends through until 2010.

Speaking during its financial results call last night, Apple admitted that supplies of the iPhone 3GS are constrained, with the company unable to meet current demand. “We are working to address this,” said chief financial officer, Peter Oppenheimer.

Supplies of some MacBook models are also constrained, but supplies of these should improve in the coming weeks, company executives said.

Apple will still introduce the iPhone into China by the end of its fiscal year (September), the company said.

The company also saw a slight fall in iPod sales, which fell 7 per cent from the year ago quarter to reach 10.2 million units. “We expect tradition MP3 sales to continue to decline over time as we cannibalize ourselves with sales of the iPod touch and iPhone,” Oppenheimer said. “But we still have a great business which we believe last many, many years, and we will continue to manage well.”

Apple admitted its own research which indicates that half of those buying an iPod are new customers. In addition, iPod touch sales rose 130 per cent year-over-year.
 

Skype updated to 2.8

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Today Skype went public with its 2.8 software for Mac.  While many of us have been using 2.8Beta for months now, this is the first chance mainstream users will be able to use Skype 2.8.  The feature list is fairly impressive:

Skype Access
Pay as you go public WiFi access so you can stay connected wherever you are. Simply pay per minute with
Skype Credit.
Screen sharing
Share what you’re seeing on your computer over a free call. Show someone exactly what you mean instead of typing to explain it.
Better sound and video
A step up in call quality that you’ll really hear – and see.

Hint: Don’t enable Mood messages!  Download it here

 

Mac Office getting cloud update today, Office Live WorkSpace now works on Mac

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Microsoft, in its attempt to hold off Google Apps, is issuing an update to its Office 2008 Macintosh productivity  software which has new features for connecting to SharePoint servers and to Microsoft’s Office Live Workspaces.  The update, which should be ready at 7PM Eastern US time (download link), also should have the requisite speed, stability and compatibility improvements as well. 

Microsoft’s senior product manager Mike Tedesco said in a statement:

"With SP2 we are not only delivering on top customer requests midcycle, but also taking a first step in bringing Microsoft software plus services to Mac users.  This connection unlocks the door for Mac users to Microsoft services for easier collaboration and file sharing with colleagues, customers and classmates."

Interestingly, Microsoft’s Office Live site is also expanding its Mac browser support to include Safari 4, in addition to Firefox (which obviously had to happen before Mac usage was possible). We hadn’t checked before if it worked with Mac, because…you know…it’s Microsoft.

Surfin' Safari turns up new 3-D HTML5 tricks that give Flash a run for its money

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If you head over to Surfin Safari, Webkit’s blog of new features, you’ll find some neat new HTML5 3-D tricks that Safari 4 (including the latest Webkit builds and Mobile Safari on the iPhone) can do without breaking a CPU sweat.  We had our doubts (and still do to a degree) but this is the kind of animation that makes Flash seem a little less … "necessary". 

In a non-scientific test, running Morphing Power Cubes, the browser used 5% of the CPU.  Flash usually starts at around 30% just to be activated.  These examples also run incredibly smooth on the iPhone and iPod touch. 

Other interesting examples (Make sure you are using a recent Webkit build or Safari in Snow Leopard): Poster Circle, Perspective, Transform Style…and our favorite: Morphing Power Cubes

 

 Here’s another fun oneChromeExperiments hosts many more (thanks commenter).

Apple employees have very high Jobs satisfaction rate

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Mr. Jobs has a pretty loyal following amongst Apple employees.  Why else would they work those long hours for mediocre payJordan Golson tapped Glassdoor, the salary and employer review site, to see just how much love Apple employees had for fearless leader.  They rate Apple and Jobs vs other technology industry companies and their leaders.

It turns out that Jobs gets 91% approval vs. 3% disapproval while AT&T’s (who currently are having union issues incidentally) Randall Stephenson gets 30% approval against 35% disapproval.  While Jobs leads CEOs in approval, Apple trails behind companies like Google and Adobe overall.

There just might be a correlation between customer satisfaction and employee approval.

iTunes 8.2.1…the .1 stands for "No Pre syncing"

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If you are feeling lucky, head over to Software Update and update your iTunes to 8.2.1.  Unless, of course, you have a Palm Pre and want to sync with iTunes ever again.  Reports indicate that this update breaks Pre syncing, at least for now.  With all of the Apple break-updates lately, we are less excited about slamming the "update now" button everytime it comes up (like we usually do).

Apple shifting MacBook orders from Hon Hai to Quanta

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According to Digitimes, Apple is continuing to shift its MacBook manufacturing away from Foxconn (Hon Hai) and to Quanta Computer.  It isn’t certain what is causing Apple to move but things like manufacturing costs, quality and workplace conditions could all be factors.

Apple and Sony will reportedly shift some notebook OEM orders from Foxconn Electronics (Hon Hai Precision Industry) to Quanta Computer in 2010, according to sources at component makers.  Apple already shifted some orders from Foxconn in June meaning the OEM’s share of Apple’s notebook shipments in 2010 is expected to drop from 20% to only around 10%, the sources noted.  However, despite losing orders from Apple and Sony, Foxconn has reportedly formed partnerships with Dell and Asustek Computer, as well as landing orders from Hewlett-Packard (HP) for 2010, the sources added.

Google's Eric Schmidt to leave Apple board?

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The Guardian is reporting that Google’s CEO, Eric Schmidt, is soon going to discuss his future (if there can be such a thing) on Apple’s board.  Schmidt, who is in Sun Valley, Idaho at a retreat with the world’s most powerful media executives, also mentioned that the conflicts of interests had not yet been discussed with Apple.

"I’ll talk to the Apple people," he told reporters on Thursday. "At the moment, there’s no issue."

The US Trade Commision is investigating possible conflicts alongside fellow Google/Apple Board member Arthur Levinson.

A further Reuters report also mentioned some other interesting tidbits including the relationship (both are Webkit based) between Safari and Chrome (the browser) and how Schmidt, as an Apple board member, kept close watch on Steve jobs during the liver transplant.

Schmidt said Chrome, which is based on open-source technology, worked with Apple’s Safari browser.

"There’s a very large collaboration with respect to Chrome and Safari," he said.

Schmidt also said he was kept well abreast of the circumstances surrounding Apple founder Steve Jobs’ medical leave of absence.

In January, Jobs began a nearly six-month leave to seek treatment for unspecified health issues. He received a liver transplant while on leave, and returned to work last week.

Apple and its board have been criticized by some observers for failing to disclose the exact state of Jobs’ health.

"I was extremely well-informed as a board member with what was going on with Steve," Schmidt said. He declined to comment further on the matter.

This follows an amuzing post by FakeSteve of basically the same message.  This one too.

 

Michael Jackson posthumously tops iTunes charts

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In the wake of Michael Jackson’s death, fans are lining up to listen to his music in record numbers.  In fact, the current iTunes Top 25 has songs from the Jackson’s songs 19 timesNine of the top 10 albums are also Michael’s.  No previous artist, living or dead, has achieved that level of popularity on the music service since it opened in 2003.  Oh, and he is 15 of the top 15 on Amazon.

Love him or hate him, he could sell albums.

Intel to begin to release game changing SSDs in two weeks

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The Inquirer reports that Intel is set to release a new round of SSDs which might bring hard drive replacements into the hands of many more laptop owners. 

We’ve been told that with these new 34nm NAND SSDs, users can expect higher performance, higher capacities, and most importantly, lower prices.  Amongst the 34nm offerings hot off the production line will be a 320GB drive, plus 160GB and 80GB capacities too. But there very well could be more. Our sources tell us there will be drives big enough to replace the HDDs in most, if not all laptops.

That is a pretty bold statement, especially with retail 500GB laptop hard drives falling significantly below the $100 price point.  Currently, the best retail SSD price/GB ratio of SSDs has been $227/128GB.  That is a lot of space and a lot of $ difference.

 

Apple triples its share in mobile graphics chip designer

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At the end of 2008, we found out through a company filing with the London Stock Exchange that Apple had owned  8.2 million shares of Imagination Technologies.  That’s roughly equivalent to a 3.6 percent stake in the company.  According to Bloomberg, Apple has been buying up shares over the past year and, with a recent 2.2 million share purchase, now has a 9.5% stake in the company. 

Imagination develops intelectual property behind PowerVR portable graphics engines that go into high end mobile devices like the iPhone and iPod touch.  Interestingly, Palm’s Pre and some other higher-end smart phones use Imagination Technologies’ chip designs as well.

Imagination Technologies fell 6.75 pence, or 4.7 percent, to 136 pence at 11:28 a.m. in London after earlier rising 3.7 percent. The stock has risen 118 percent this year, giving the company a market value of 311 million pounds.
 

Apple would have transitioned to the Cell processor had it stayed with PowerPC, but too expensive

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CNET, on the fourth anniversary of the switch from PowerPC to Intel, interviewed an ex-IBMer who had been familiar with the IBM PowerPC-Apple relations at the time.  He/She(/Papermaster?) had some interesting insights into the situation at the time. 

The generally accepted reason for the big switch was that Intel’s Power/Watt ratio with the Core Duo crushed anything that IBM/Motorola could come up with (plus it ran Windows).  This person offers some different scenarios:

Apple wanted better pricing, according to this person. Apple was paying a premium for IBM silicon, he said, creating a Catch-22. IBM had to charge more because it didn’t have the economies of scale of Intel, but Apple didn’t want to pay more, even though it supposedly derived more from an inherently superior RISC design as manifested in the PowerPC architecture.

 For IBM, the business with Apple was a financial sinkhole because the company had to invest a lot of money in chipsets, compilers, and other supporting technologies but could only take about 5 percent of the overall PC processor market, he said. So, in the end, it was impossible to make money. 

Why 5 percent? Apple insisted on double sourcing (IBM and Motorola). So, from the start, this left IBM with about half the market it could have had. This, he said, was an enormous financial burden. Paraphrasing the ex-IBMer: Intel was a single company with the lion’s share of the market. While two companies–IBM and Motorola–had to divvy up a much smaller share of the market, while still investing, individually, tremendous amounts of money. And Apple played one against the other, according to this person.

Perhaps most interestingly, IBM planned to migrate Apple to the Cell processor, where the economics of scale could then be utilized.  The Cell platform is shared with Sony Playstation and others.  With the release of Snow Leopard, which is not PowerPC compatible, that hope is all but dead.

IBM had hoped to amortize the cost of PowerPC on Cell, the PowerPC-based chip design now used in the Sony PlayStation, some IBM severs, and IBM Roadrunner supercomputers. Big Blue was hoping to move Apple to Cell and then get the economies of scale there, according to this person.