Former iPod Chief Joins Palm

Palm approves a $325 million investment by Elevation Partners, as Apple's former iPod division chief joins the company.

Palm approves a $325 million investment by Elevation Partners, as Apple's former iPod division chief joins the company.

  • Mac OS Ken: 06.01.2010

    ​Apple Sells Over 2 Million iPads in Less Than 2 Months / Fortune Looks at the International iPad Launch / Vodafone UK Struggles with Micro SIM for iPad on Launch Day / Bell Joins Rogers in Offering iPad 3G Service to Canada / RBC Analyst Sees Big Sales for iPad Through CY2010 / BofA/Merrill Lynch Ups Apple Target to 325 Dollars / Shaw Wu Says Cloud-Based iTunes and New Pro Hardware Possible for WWDC / New York Post Says DoJ Probe of Apple Expanding Past Music / Telefonica Reportedly Out of iPhones in Spain / BGR Says A T and T to Offer iPhone Insurance Soon / Skype App for iPhone Now Makes Calls Over 3G Networks / Skype Moves the Goal Posts on How Long Free 3G Calls Will Be Free / Google Closes AdMob Acquisition / webOS UI Chief Duarte Leaves Palm for Google to Work on Android / NVIDIA CEO Praises Potential of Android for Tablets / All Things D says Microsoft Is Looking for Prominent Placement on iPhone / iPhone First (Moto Droid Strong Second) in ChangeWave Survey / Engadget Spins the Tale of a New and Tiny and Cloud-Focused Apple TV

  • Apple iPad's tablet competition drop like flies, e-book readers next

    Less than a month following the launch of Apple's iPad tablet device and a day before the release of the 3G-capable version on Friday, Microsoft announced that it has dropped plans for the Courier, the tablet that many pundits said would be an iPad killer. Oops, some wishful thinking. Other so-called “hot” tablets are now history. Certainly, it's just a question of time before e-book vendors to start dropping out of the race soon. Mary-Jo Foley wrote on All About Microsoft that she was surprised at Redmond's decision on the Courier given its strong buzz: I’m kind of surprised at the timing, given Microsoft recently confirmed to The New York Times what I’d been hearing for the past few months: That Courier was on track to hit the market in 2011+. Word is the decision to nix Courier happened in the past week or so. Courier was going to be a kind of “Franklin Covey planner on steroids,” according to early mock-ups of the product. Supposedly, Chief Experience Officer J Allard was the main mover and shaker behind the Courier project. And on Thursday there's the word that Hewlett-Packard killed its Slate tablet computer that was scheduled to run Windows 7. In my Wednesday post about the Palm-HP buyout, I mentioned that Microsoft's partners had no confidence in its mobile strategy or technology. Each day, we see further evidence of its failures. The runaway success of the iPad is causing all the makers of tablet hardware to reevaluate their chances. Microsoft's lackluster technology just makes the decision easier. E-book reader vendors must be next to fall. Consider the following: First and foremost is the market share problem. Until now, there were a number of entries with the Kindle at the top of the heap. Suddenly, Apple sells 500K units in one week and that is for the model that isn't 3G-capable, the one that people supposedly don't want as much. No doubt, Apple will sell more than a million units by the end of May. Could be more, since the device is being rolled out worldwide. How many millions of iPads will be sold over the next few months before the fall school year? Or after July 1, when many governmental agencies have the start of the new fiscal year. Millions. At the same time, we don't really have a handle on how many Kindles or other e-book readers have been sold. Supposedly, upwards of 3 million units. But this figure is based on dubious calculations. A source in the book publishing business told me this week that the figures appear to be inflated; he believed that fewer than 1 million have been sold. I have distrusted the high e-book reader sales estimates, mainly because they are based on book sales figures. Most users when they start with a technology buy a lot of titles, whether apps or content. When I first purchased my DVD player years ago, I would snap up many titles that now when I see them on the shelf, I wonder what I was thinking. I mean, Johnny Mnemonic? If I am generous, I would say that 1.5 million Kindles have been sold with the total category less than 2 million. However, I side with the industry insider's pessimism and believe that the total installed base of e-book readers is 1.5 million or even fewer. A prediction: When the dust clears and the sales figures are finally known, we will discover that in a short time frame, perhaps in the span of a few months, Apple will have sold more e-book readers than have ever been sold in the history of the category (I saw my first reader in the late 1990s). And by the end of the year, Apple will have a similar market share in the e-reader category that it has with the iPod and iPhone, in the 60 to 70 percent range. In his piece in the New Yorker, Ken Auletta says that e-book readers are all about market share. There are now an estimated three million Kindles in use, and Amazon lists more than four hundred and fifty thousand e-books. If the same book is available in paper and paperless form, Amazon says, forty per cent of its customers order the electronic version. Russ Grandinetti, the Amazon vice-president, says the Kindle has boosted book sales over all. “On average,” he says, Kindle users “buy 3.1 times as many books as they did twelve months ago.” But publishers also recognize the similarity between Amazon’s strategy and that of iTunes. One publisher said, “Get market share, and when you get far ahead it is hard to catch up. Bezos’s game, like Jobs’s before him, is to get the device and get eighty-to-ninety-per-cent distribution on the device, and you own the game.” So, a month in and we can see that that race is almost done. Second, I note the iCrime rate for e-readers. I have read anecdotal reports that you can read a Kindle on the NYC subway and nobody will bother you. This was said with a note of pride, as if that was a good thing for the Kindle platform. The “where are the iPads if they're so hot?” measure of the market. We already have news reports that if you pull out a iPad on the subway, you will be instantly mugged. This was the very same problem with the Microsoft Zune audio player a couple of years ago — robbers would steal the iPods and leave the Zunes. Finally, there's the issue of user experience. Jason Perlow offers an interesting comparison between the Kindle and iPad at Tech Broiler. However, the iPad's quality, expanded usability and rich-media capabilities will outweigh the problems with the iPad screen. Hey, if you're outside, “read” an audio book. Despite all the hype by Amazon, in the past couple of years I have only met one really satisfied Kindle owner who is not a technologist. He is a scholar who has a movement disability and appreciates being able to carry his obscure texts in a single, lightweight device. Of course, my guess is that he would be happy with any e-reader.

  • Mac OS Ken: 12.23.2008

    Thomas Weisel Analyst Raises iPod Estimates and 1Q Earnings Estimates / A Case-Makerâs Case for an iPhone Nano / MacRumors: Backing Up the Case-Makerâs Case / Ars Technica: The Case Against the Case-Makerâs Case / Psystar: Apple Failed to Copyright Mac OS X / Aspyr Joins List of Game Makers Cutting Staff / Elevation Partners Sinks $100 Million into Palm / Valleywag: Are Bono and Jobs Still Friends? / Vatican Endorses iBreviary App for iPhone and iPod Touch

  • It’s Splitsville for the “Godfather” of the iPod

    Sure, we know that Apple CEO Steve Jobs usually gets all the credit for the iPod (or at least shares it with designer Jonathan Ive), but one of the guys who really got his hands dirty on the original device has left Apple.The New York Times is reporting that Tony Fadell, credited as one of the creators of both the iPod and the iPhone, announced Monday night that he has officially left Apple after nine years with the company.So who is Tony Fadell? He’s the guy who “first envisioned a hard-drive-based digital music player in the 1990s,” according to the newspaper. The visionary first brought the idea to Seattle-based Real Networks, “where he reportedly clashed with Real’s chief executive, Rob Glaser, and left after six weeks.”That departure landed him at Apple’s doorstep in 2001, where he worked for former Apple senior vice president Jon Rubinstein, now the chief executive at Palm. In 2006, Fadell replaced Rubinstein as the head of the iPod division, but stepped down in 2008 and remained on Apple’s payroll as a special adviser to Steve Jobs.Fadell declined to talk about his work with Apple when reached by phone by the Times, but said he was “moving on to advise companies and pursue private investments,” with a particular focus on green technology.“My primary focus will be helping the environment by working with consumer green-tech companies,” Fadell concludes. “I’m determined to tell my kids and grandkids amazing stories beyond my iPod and iPhone ones.”

  • Apple CEO Steve Jobs Named “World’s Most Valuable”

    As if Apple CEO Steve Jobs needs to be on another list of the rich and envied! Be that as it may, Jobs has shown up on another list of the 30 most respected chief executives.AppleInsider is reporting on the new honor bestowed upon Apple CEO Steve Jobs, which comes as part of Barron’s annual list of the best CEOs in the world. Included in the list of 30 executives, Jobs returns from last year and joins Amazon.com’s Jeffrey Bezos, Hewlett-Packard’s Mark Hurd and mega-billionaire Warren Buffett."Probably the world's most valuable CEO is Steve Jobs of Apple, as shown by stock dips on news of his medical problems," the report says. "Apple recently hit a record, with a market value topping $200 billion, a reflection of the Street's confidence that a healthy Jobs (at least from what we can tell) continues to keep Apple ahead of the game. Jobs likely accounts for $25 billion or more of Apple's market value."Jobs is a particularly good choice for the “world’s most valuable CEO”: After all, he co-founded Apple with Steve Wozniak, wound up being fired later by a man he hired to protect his interests, and triumphantly returned to the throne in 1997 to save Apple at their most dire period."The Mac was and remains brilliant, but it was just the beginning," the report continues. "With the iPod, iPhone, iTunes and the App Store, Apple has forced dramatic changes in the music, movie and wireless businesses. With the iPad and the iBookstore, he's taking on the rest of the content industry, including textbooks, bestsellers and newspapers."This isn’t the first time Jobs has been praised so highly, either: Back in December, The Harvard Business Review named him the world’s best-performing CEO “for increasing his company’s market cap a whopping $150 billion in the last 12 years.”A finalist for Time magazine’s 2009 “Person of the Year,” Jobs was also given the title “CEO of the Decade” by Fortune magazine in November for being “a groundbreaking technology leader and [Apple] the most valuable company in Silicon Valley.”(Image courtesy of AppleInsider)

  • 20 Ways That Apple Could Spend Their $40 Billion Mountain of Cash

    In case you haven’t heard, Apple is sitting on a literal mountain of cash these days -- piled $40 billion high. Which got us thinking: What could they spend it on?Apple announced to shareholders in late February that the company was practically surrounded by cold hard cash from its very profitable products and services. CEO Steve Jobs told investors that a $40 billion stockpile gives Apple “security and flexibility,” but at the same time he said that now was the time for the company to “think big” and take “big, bold risks” with that security to drive the stock price even higher.Steve, your pals at MacLife.com have some great ideas for you, so pull up your iPad (we know you’re using one!) and try to wrap your mind around what we have to offer. And hey, you don’t have to pay us for these ideas -- free Apple products for the rest of our lives will be payment enough.Jobszilla Stomps TokyoWhile there’s no denying that Sony made the best home electronics through most of the ‘70s and ‘80s, somehow they lost their way over the last decade or two. But the company has plenty of great assets that Apple could tap into and make even greater, such as a robust catalog of film and television programming. While many feel that the Playstation 3 is the weakest of all the game systems out there, could you imagine what Apple might do with it in their hands? Cupertino might finally have a serious chance to crack into the living room in a big way.Apple-Themed iParkThings just haven't been the same since the lose of the Icon Garden at Apple hedquarters. To fill the void left by the loss, Apple could throw some money into an Apple Theme park. Imagine the joy of riding the Mac Pro roller coaster or taking a spin on the tilt-a-iPod. And finally, who could resist Mr. Jobs wild ride? We've already got the kids ready to get their pictures taken with Clarus the Dogcow. MOOF!Get The Beatles on iTunes, Finally!Steve Jobs has already gone on record as saying they’re one of his favorite bands. Heck, he basically named his “little” (at the time) computer company after the band’s own label! While most people are sick and tired of the “will they or won’t they” rumors about The Beatles finally coming to iTunes, we figure if Steverino really wanted to make it happen, $40 billion in the bank should go a long way toward making that a reality. So let’s get the band’s people in a room with Apple’s people and a big pile of cash and make it happen at long last, what do you say?TiVo Your Way Into the Living RoomEveryone knows TiVo -- heck, even people who don’t even own a TiVo unit often refer to it by name when recording their favorite TV show (e.g., “I’ll just TiVo it.”). But despite having superior technology and brand recognition over its satellite and cable brethren, their very existence seems to currently hang on patent settlements with Dish Network rather than actual sales of their product. Apple could swoop in and add iPhone OS to their devices and finally invade the living room in the way they’ve been looking to do for a long time.Sue Everyone, Crazy StyleWhy stop with their current HTC and Nokia patent battles? Apple could go absolutely nuts and sue anyone and everyone who’s ever “borrowed” one of their ideas, just to keep throwing their money at attorneys and freak out the competition. What good is money in the bank if you can’t get freaky with it, anyway? Maybe Apple could even reopen the old “Mac vs. Windows” wound and give suing Microsoft another go -- after all, things haven’t exactly gotten any better in the copycat department with Windows 7, now have they?Start “The Macintosh Fund”If Bill Gates can quit Microsoft to do charitable work, why shouldn’t Steve Jobs use Apple’s newfound stash of cash to do some philanthropic work of his own? Instead of giving cold, hard cash for worthy causes, perhaps Apple can hand out Mac computers for worthy causes. Now that would likely be a nice kick in the pants for the old Mac market share, wouldn’t it?Revenge Is Sweet: Crush PalmWe hear you: Why does Apple, who’s already a smartphone leader with the iPhone, need to buy another smartphone company? Everyone seems to think that Palm is on life support as it is, what with their WebOS Pre and Pixi devices not quite setting the world on fire just yet. However, Palm has a few unique features in WebOS that Apple’s programmers could learn a trick or two about, such as push e-mail on all accounts and an excellent, non-intrusive push notification system. If that’s not enough, how about just doing it for blind, stinking revenge? After all, current CEO Jon Rubinstein was formerly an Apple guy who helped make the iPod what it is today -- buying Palm would be like killing two birds with one stone by tossing Jonny boy back into retirement for good and squashing the currently low-hanging fruit in the smartphone world. Oh, and what sweet revenge for Palm trying to hack their way into iTunes compatibility...Find a Mountain and Carve the Two Steves Onto ItEveryone knows Mount Rushmore, but why stop with dead Presidents? For no other reason than simply because you can, buy up an empty plot of real estate with a nice slab of rock on the side of it and get some artists carving the likeness of Apple’s founders, Steve Jobs and Steve Wozniak, on that sucker. Stick the biggest and best Apple Store yet at the foot of that mountain and you’ve got all the ingredients for an awesome mecca that Apple fanboys the world over will be tripping over themselves to visit. We’ll buy a few tickets for the staff right now!Make Jeff Zucker Your... Well you know. NBC Universal CEO Jeff Zucker was one of the most outspoken critics of Apple’s iTunes Store, which culminated with Apple dropping popular NBC shows such as The Office off the store over a pricing dispute. While it all eventually got worked out (and mostly in Apple’s favor), NBC is faltering in the TV ratings and the whole deck of cards doesn’t seem quite as stable as it used to. For many of the same reasons as we cited for buying Sony, Apple could step right up and be a media conglomerate practically overnight -- and while they’re at it, Steve Jobs should take his Disney shares, absorb that company and make it one huge media empire under Apple’s control.One-Up Bill Gates and Buy Two IslandsWhen you have as much money as Bill Gates, it gets hard to come up with ways to spend it all. Last summer, the former Microsoft chief announced his plans to buy up the Greek isle of Skorpios for a mere 120 million Euros. That’s like chicken feed for Apple, who could buy at least two islands and barely have the accountants break a sweat. The real question is, would they name one of them “iIsland”? God forbid…Finance Feature Films or TV ShowsApple has already “starred” in countless number of films and television shows over the years, with various versions of the iMac, MacBook, iPod and iPhone (among them) showing up on screens both big and small. But what if Apple decided to start creating their own content instead? Hollywood is creatively bankrupt anyway, and audiences are throwing their money at an endless parade of flashy, CGI-driven spectacles, despite the fact that they have more plot holes than Swiss cheese. We’d like to see Steve Jobs step into those pitch meetings and sprinkle some of his magic Pixar fairy dust onto some movies for adults, for a change.Start a Record LabelAnd while we’re at it, why not give the ultimate one-finger digital salute to the music industry: Launch Apple Music and be done with it! Sure, it might further irritate your newfound pals at The Beatles’ Apple Corps Ltd., since they already sued you and lost for putting one foot into the music business with iTunes as it is. Might as well skip the middleman and start signing artists directly… you already have the storefront to make it happen, and you could be the first major label to go all digital (no cumbersome CD version). Just make sure you keep your new releases at the old 99 cents per track, hm’kay...?Finally Put a Stop to Those Pesky Rumor SitesApple has a real love/hate relationship with product rumors leaked on websites. Some people believe that Cupertino plants at least some of the rumors intentionally to help stir interest in new products -- other times, Apple attacks with their legal team when the rumors hit a little too close to home. That leaves Apple with one of two choices: Spend the money on attorneys to clamp down on the endless parade of rumors (which isn’t likely to ultimately work), or just buy all the websites and call it a day. We figure with $40 billion in the bank, most website owners would say, “Let the bidding begin.” After all, when cash talks, journalistic integrity often walks.Free iPad with Every Mac PurchaseApple probably knows it’s got its work cut out for it with the iPad: After all, once the tech-heads among us buy one, who’s left? This isn’t like an iPhone, a device that does so many things that fits in your pocket. If Cupertino really wants to secure a future for the iPad, they’ll start tossing in a free $499 Wi-Fi only model with every Mac purchase over $1,000 or so. Sure, they’ll be using it as a loss leader in the beginning, but if there’s one thing Apple knows, it’s how to turn customers into drooling junkies looking for their next fix. As every good dealer knows, the first one’s free.Take My Netflix, PleaseThe DVD business might be on its way out, but Netflix is currently where it’s at when it comes to streaming movies and TV shows to our living rooms. Apple could swoop in with a hostile takeover of the service, add it to the iTunes Store and take a nap for awhile while Blockbuster continues going down in flames. And for the love of God, please shoehorn that service onto our Apple TV units… there must be a way!Cryogenically Freeze Steve Jobs for The FutureApple CEO Steve Jobs is still with us, thank God, and will be for the foreseeable future. But if Apple really wants to secure their future, why not invest in some top of the line cryogenic freezing technology so when The End finally does come, the company can keep him on ice until modern science catches up with them. Or better yet…iSteveClone. Steve. Jobs. There, we said it. Since his triumphant second coming with Apple and the tidal wave of cool stuff we’ve all burned up our credit cards to purchase, there has been some degree of concern over how Cupertino will fare without Dear Leader -- whether he retires by his own hand or by his Creator’s. So Apple, fire up the checkbook and invest in some of that top-rate cloning technology and let’s get some backup Steve Jobs churned out… you know, just in case.Start Manufacturing In Cupertino AgainThere was a time not so long ago when Apple’s computers were proudly stamped with “Made in U.S.A.” (or rather, “Made in Cupertino”). In 1986, Apple began manufacturing in China and never looked back -- and neither did most other U.S. consumer electronics makers. Politics aside, shouldn’t a company with $40 billion in the bank be ashamed that the American economy is so troubled while they continue to reap the rewards from their products being manufactured overseas? Sure, we all want cheaper iPhones, iPods and Macs, but at what expense? Apple has the power to make “Made in America” really mean something again.Bring It All Under One RoofSpeaking of manufacturing in China, why not spread some of your fortune around and keep everything under one roof again in Cupertino? Why use Intel processors for your Macs when you can just create your own? We know it’s costly and maybe not very practical, but for a company to pride itself on making the best and brightest products, you could do it all and really shine. And you know those pesky leaks and rumors? Those would probably be a thing of the past, too -- except for the ones you actually want to get out, that is. (Wink, wink, nudge, nudge.)Take Their $40 Billion Ball of Cash and Go HomeOf course no one wants to see an innovative company like Apple just pack up their things and close their doors forever, and certainly with the kind of business the company is doing these days, that’s not likely to happen anytime soon. But what if the entire company just decided they couldn’t keep trying to top themselves anymore and called it a day? That would sure silence all those nasty critics. On second thought, never mind: It would also put us out of a job! Scratch that.So how about the rest of you? Got some better ideas as to where Apple can share its fortune? Share them in the comments!

  • Microsoft's Zune, Vista, and Windows Mobile 7 Strategy vs the iPhone

    Daniel Eran Dilger What secret partner has Microsoft discovered to bail water from the deck of Zune and its Zune Marketplace music store in a last ditch attempt to take on Apple's iTunes, the iPod, and iPhone? Microsoft's own Windows Mobile, of course, with some help from Windows Vista! Who Else Will Help Zune? Certainly not Nokia, as one Zune fansite tried to suggest last week. Nokia has nothing to gain by promoting the Zune. A more credible sounding rumor, as long as we're inventing stuff, would be to instead suggest that it could be Sony Ericsson that is interested in putting the Zune software on its new phones. At least Sony has already demonstrated its complete failure at selling music on its own, and actually has a Windows Mobile phone in the works. The simpler reality is that Sony Ericsson may have no choice in the matter. Microsoft is clearly out to wed the Zune with Windows Mobile in a effort to get the two failures to prop each other up in its “I'm not dead yet!” fight against the iPhone. Microsoft is likely to make inclusion of its Zune Marketplace a mandatory feature that its Windows Mobile partners will have to swallow, just as it forced its PC licensees to bundle its Internet Explorer browser and later Windows Media Player, while prohibiting them from seeking their own bundling deals with other companies. Microsoft took quick steps to block Compaq's licensing of QuickTime, for example. Those deals were bad for HP, Compaq, Dell, and the other PC makers, bad for competition within the tech industry, and subsequently bad for consumers. However, they did enable Microsoft to use its powerful Windows monopoly position to push proprietary standards and or anti-interoperable technologies designed to expand its monopolized control, while making big money selling Windows in a market that lacked any alternatives. Will Nokia Rescue Microsoft’s Zune? Haha No. Apple in the Web Browser Wars: Netscape vs Internet Explorer Microsoft's Plot to Kill QuickTime A Lot Has Changed. This time around however, all Microsoft has to leverage is Windows Mobile, a struggling platform with little respect in the industry, now in a distant third place. Further, the technology Microsoft is trying to push is essentially its Windows Media DRM, which has already been swept up and trashed by Apple's iTunes, QuickTime, and the iPod. The dismal fate of Windows Media was sealed with the failure of PlaysForSure. The Zune's new, albeit incompatible, reincarnation of Windows Media DRM never stood any chance of making any headway. However, the most problematic part of Microsoft's strategy of pushing its Zune Marketplace store on its Windows Mobile partners is that music stores don't make money. Apple's iTunes Store is the biggest online music store on Earth, and does tremendous volumes of sales. Still, Apple reports minimal profits from the store. It recently warned its investors that it's now selling so much through iTunes that the low profit, high volume venture may have a negative impact on the company's overall profit margins. As problems go, that's certainly a nice one to have. Apple is not at all worried about turning a big profit with iTunes because it runs the store exclusively with the intent of ensuring new content for the iPod, iPhone, and Mac. That in turn sells its hardware. However, Microsoft doesn't have hardware sales to nurture. It has barely sold two million Zune units, many at fire sale prices (compared to 150 million iPods, 93 million of which have been sold since the Zune's release). It now faces impossible odds in tilting against the momentum of iTunes' rapidly spinning windmills, with no possible upside in terms of eventual music store profitability. There's simply no way that any amount of investment in the Zune Marketplace could deliver profits, because Microsoft is competing against Apple's non-profit motivation behind iTunes. Further, Windows Mobile is similarly a big loser with no potential because Microsoft has little ability to profitably license its mobile software. It's competition is the iPhone OS, which Apple develops for free to sell iPhone hardware (Microsoft does not sell its own phone hardware); RIM's mobile OS, which is also free for BlackBerry hardware; the Symbian OS, a partnership between hardware makers; and various mobile distributions of Linux, including Google's Android, all of which are also run as profitless ventures to support hardware sales (or in Google's case, service sales). The Great Google gPhone Myth Why Microsoft’s Zune is Still Failing 10 FAS: 7 - Apple’s Hardware and Dvorak’s Microsoft Branded PC Good Money After Bad. All that unpleasant reality hasn't phased Microsoft. Its executives haven't found a way to make money in consumer electronics yet, and the company's attempts just keep getting more and more expensive. Barron's recently featured the speculation of one Microsoft investor who hoped the company would spin off its hemorrhaging online services division as well as its profitless entertainment and devices unit, which includes the Zune, Xbox, and Windows Mobile. The investor calculated the value of Microsoft's other businesses (its high profit Office, Windows, and server divisions) and decided that the market wasn't assigning any value at all to Microsoft's consumer electronics and services products divisions. No wonder; they're nothing but a huge drain on Microsoft! Even so, the investor seemed to think there must be some value to obtain from selling off the black holes, citing the market value of the highly profitable Nintendo. The investor's real intent seemed to be finding a way to “discourage the company from overinvesting in the business.” Microsoft's stock has only appreciated by 6.3% over the last decade. Apple has appreciated 1,822.6% in the same period. Microsoft is trying to develop new markets as Apple has, it's just failing to do so. Microsoft’s Outrageous Office Profits Strength in Bundles. Microsoft has always been interested in promoting its products by using strong ones to prop up weak ones. From the start, it bound its strong Mac apps to the rather weak Windows offering to invent the PC platform, and has since tied Word and Excel to a suite of otherwise fair to marginal apps under the Office banner. Once Windows became established, the company tied in an unfinished, third-rate web browser and was able to rapidly build it into a strong competitor through market inertia. On the server side, Microsoft similarly ties in tragic products into package deals that often (but not always) enable the weak bits to gain some traction. So Microsoft is again working to stitch together its various properties to support each other, but now most all of its recent products are in flames and desperately need reinforcement. There's only so much one failure can do to support another. Even worse, Microsoft's historic strengths are no longer working. The Windows monopoly was supposed to brace up Windows Media Players, Windows Media Center, Windows Mobile, Windows Live Search, Windows Live Soapbox, and a series of other cobranded products that haven't gone anywhere. Office Wars 3 - How Microsoft Got Its Office Monopoly Office Wars 4 - Microsoft’s Assault on Lotus and IBM Why Does Microsoft Really Want Yahoo? Certifiable Failure. Windows itself is now in the throes of crisis, as the failed launch of Vista nearly two years ago has signaled the undoing of Microsoft's ability to rely on its desktop monopoly to advance failures into strength. Is Vista going to put out the Zune's flames by beating with its own flame-engulfed wings? That's part of Microsoft's current strategy, which included rebranding PlaysForSure as 'Certified for Windows Vista.' The Zune is also Certified for Windows Vista, despite not being compatible with the Certified for Windows Vista PlaysForSure. Confused? You needn't be for long, as the remnants of Microsoft's one-time strategy for creating an 'ecosystem of hardware, service, and software partners' to provide choice and freedom in the music industry is pretty much dead now. All of Microsoft's significant PlaysForSure store partners, including AOL MusicNow, MTV URGE, Musicmatch Jukebox, Wal-Mart Music, Yahoo Music, and Microsoft's own MSN Music have now unplugged their PlaysForSure stores, ironically making the brand among the least accurate names for a service ever. The remaining stores making use of PlaysForSure music, principally Rhapsody and Napster, are now on death's door. PlaysForSure video stores such as CinemaNow, which once worked with Microsoft's PlaysForSure-certified Portable Media Players no longer do. Even Amazon's UnBox service, which is supposed to sync with some devices that are PlaysForSure-certified, has not bothered to get certified under Microsoft's program. Incidentally, the failure of Yahoo Music and Microsoft's MSN Music (and the company's outrageous plan to simply unplug its customers from DRM authentication) caused CNET to wonder if Apple might be next in line to make users' music purchases unplayable, echoing the poorly conceived idea that Microsoft's Vista failure, its mobile platform incompetence, and desktop viral malware security crisis all somehow also predict a similar certain doom for Apple at some point in the future. For some reason, CNET saw no connection between the failure of Yahoo and MSN (hint: PlaysForSure), and no reason to speculate about the future of other media stores facing actual failure and likely disbanding in the near future, including Rhapsody, Napster, UnBox and Microsoft's own Zune. Nearly all of the recent DRM deactivation controversies, including Major League Baseball's, have been related to Microsoft's software, although Google decided to similarly to dump users of its paid video when it pulled the plug on Google Video last fall. Rise of the iTunes Killers Myth Forrester Research: Epic Terror of iTunes and Apple TV But Wait, What About This Ecosystem Failure Sounds Familiar? The complete failure of Microsoft's PlaysForSure hardware and software licensing program paints a damning prophetic picture foreshadowing the fate of Windows Mobile. Pundits often dance around this fact by spewing Microsoft's talking points: Window Mobile has lined up scores of hardware partners! Windows Mobile has lots of software partners! Choice is good! Oh wait, that's the same stuff they said about PlaysForSure in explaining why the iPod couldn't stand a chance once Microsoft could deliver its Windows Media Player reference designs and the Windows Media DRM that would enable PlaysForSure stores to open their doors. The only real difference between PlaysForSure and Windows Mobile is that the former was expected to prove that the Windows licensing model would work well among mobile devices, while the latter has already proven for some time now that it can't. Windows Mobile has been a snowball of failure ever since it launched a half decade ago with clumsy-looking phones running buggy, poorly architected software with abysmal battery life that makes the iPhone 3G look exceptional in comparison. Windows Mobile simply shares too much in common with the PlaysForSure failure to escape the event horizon if its blackhole. Pairing software from one vendor to hardware from another is problematic in the PC market, but completely untenable among highly integrated mobile devices. Microsoft tried to blame PlaysForSure incompatibilities on its music store and hardware partners, but the real problem was the model. Microsoft's own software problems didn't help either of course. The issue on Windows Mobile is even more significant because having functional mobile phone service is far more critical than being passively entertained by an MP3 player. Unchecked diversity among the devices of a platform is a bug, not a feature. The mantra of choice and freedom, hailed among Windows enthusiasts and homebrew hackers alike, makes for a great mission statement but in reality delivers products that just don't work. It's great to be able to compile your own servers from free and open source software, but most consumers don't want the accountability that comes along with that freedom when trying to dial 911 from their phone. For that matter they don't even want to troubleshoot the installation of a firmware update, or deal with why software designed for a tall screen looks awful on a square screen. With an integrated product like the iPhone, they can complain to Apple for a fix. With Windows Mobile, you get passed around by Microsoft from the mobile operator to the hardware maker to the third party software developer. Everyone is responsible but nobody is accountable. The Spectacular Failure of WinCE and Windows Mobile Count the Flames of Windows Mobile. And so, in terms of failing platforms, Windows Mobile is closer to PlaysForSure on the flames meter than it is to the only smoldering Vista, which is a moderate success by comparison. If attaching the Zune, Microsoft's phoenix on fire, to Vista's train wreck didn't have any impact on the relative salvageability of either, what will Windows Mobile 7 do for Zune 3 a year and a few months from now in late 2009 at the earliest? That's Microsoft's current schedule, barring any customary delays. By then, Apple will have had the iPhone in international distribution for more than a year, the App Store will be a year and a half old, and the WiFi iTunes Store will be more than two years old. What in Windows Mobile 7 will make a difference for smartphone buyers? According to Microsoft: copycat touch controls hobbled by an interface trying to look like Vista (below, and yes they did spell Internet Explorer wrong, as well as putting a space in ActiveSync), and no doubt a major new push to force Zune Marketplace media sales down the throats of Windows Mobile users in imitation of Apple. Microsoft is no Apple. The problem of course, is that the market for Windows Mobile phones is almost exclusively among corporate IT users, who don't give a rats ass about downloading music from the Zune store. So there's really little potential for cross pollination between Windows Mobile and the Zune. In contrast, Apple originally marketed the iPod and iPhone to consumers, who do buy up music to the tune of billions of tracks every year. Apple now has success to build upon, and has targeted its year-old iPhone platform toward the enterprise, with development tools, a software deployment infrastructure, and management utilities that in most cases meet or exceed what Microsoft has delivered over past decade on WinCE and Windows Mobile. On top of that, the iPhone platform has a far superior, standards-based web browser, development frameworks recognized to be easier to use than Microsoft's mobile .NET, and a core OS that is simply more stable, not to mention a user interface that's designed to look good and be simple to use rather than to match the flashy branding of a failed desktop OS. WWDC 2007: Kevin Hoffman Presents .Net vs. Cocoa The Other Problem: Windows Mobile is Going Down. Anyone banking on Microsoft's promises to deliver Windows Mobile 7 on time by the end of 2009 should also consider the company's track record in delivering Windows Mobile updates. The company initially intended to get Windows Mobile 5 out next to Longhorn [Vista] in mid to late 2004. Windows Mobile 5 was actually released in May 2005, and Vista finally popped out “officially” at the end of 2006, although one couldn't actually buy it until it was relaunched to consumers in early 2007. Even after Microsoft “released” its subsequent Windows Mobile 6 nearly a year later (based upon the same underlying WinCE 5), it took six months or more for many of Microsoft's partners to approve it and set up distribution so that users could actually get the software on their phones. In contrast, Apple releases regular iPhone updates every month or two that are always available to users immediately after their release, directly from Apple. Microsoft doesn't exactly have years of leisure at its disposal. Windows Mobile has already been hit hard by competition from the iPhone and from other rivals, including RIM in the enterprise market and Symbian internationally. That competition has resulted in Microsoft's mobile market share slipping year over year. This year, Microsoft failed to meet its frequently repeated goal of selling “more than 20 million units” through all of its various hardware partners, and instead only sold 18 million. Microsoft senior vice president Andy Lees blew off the missed goal as a “rounding error.” He cited numbers from IDC that indicated Windows Mobile had grown from 11% to just under 13% of the worldwide market for smartphones, growing faster than the overall market, and that unit sales of Windows Mobile phones have both outpaced sales of BlackBerry phones and outsold the iPhone by a factor of two. Windows Mobile misses target Oops, Microsoft Fibbed a Bit There. Canalys reports that Microsoft actually started out with a 23% share of the smartphone market in Q1 2004, which fell to 18% in Q1 2005, then down to 12% in Q1 2006, where it remained in its Q4 2007 figures. Apple ranked at 7% worldwide in Q4 2007, but that was based on sales in one market, of one model, and on one mobile provider, after only being on the market for six months. Smart mobile device shipments hit 118 million in 2007, up 53% on 2006 (Canalys press release: r2008021) If the best Microsoft can do is to claim victory for selling twice as many phones as Apple, worldwide across all of its partners despite having a many years long head start and that great ecosystem of manufacturers behind it, then it should probably just not say anything. Incidentally, with the release of the iPhone 3G, AT&T is reporting having doubled its sales volumes, not to mention all of the other new markets the iPhone 3G is now being sold in worldwide, at half the price of the original model. Within just the US smartphone market, which was Apple's only market last year and is also Microsoft's strongest market for Windows Mobile, the iPhone grabbed a 27% share in its debut third quarter of 2007, and maintained a 28% share in the fourth quarter 2007, behind RIM with 41%, but ahead of Palm at 9%. Adding up all of the Windows Mobile manufacturers selling in the US, Microsoft could only claim to have its software on 21% of the phones sold, a significant step behind Apple. Canalys, Symbian: Apple iPhone Already Leads Windows Mobile in US Market Share, Q3 2007 iPhone Grabs 27% of US Smartphone Market Also, all of these figures bundle in all of the “convergence” Pocket PC mobile devices sold by Microsoft's partners, but none of the iPod touch units Apple sells, which are likely to be in well in excess of its iPhone sales. So Apple's mobile WiFi platform is actually far larger and growing much faster than market statistics companies report under their smartphone category. Anyone hoping that Windows Mobile 7 to going to reverse that trend when it arrives over a year from now is seriously delusional. Did you like this article? Let me know. Comment here, in the Forum, or email me with your ideas. Like reading RoughlyDrafted? 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  • Adobe’s Mobile Flash Player 10.1 Slips to Second Half of 2010

    (Image courtesy of AppleInsider)Poor Adobe Flash: It can’t get a break on Apple’s iDevices (iPhone, iPod touch and iPad) and now the company has confessed that the devices that are capable of using the mobile version of Flash 10.1 won’t be seeing it until later this year.AppleInsider is reporting that Adobe has pushed back the debut of Flash Player 10.1 for mobile platforms until “the second half of the year” after early previews of the software with Google Android and Palm webOS devices. Adobe is promising to also support RIM’s Blackberry, Symbian and Microsoft’s Windows Phone 7, also on target for this winter.According to the company’s own timeline seen above, Adobe had planned to release Flash 10.1 for mobile in the second half of 2009, then shifted it to the first half of this year. That means the latest push will make the release a full year late to the table -- and Adobe is pinning at least some of the blame on Apple for its outright neglect of the Flash platform.Adobe chief executive Snatanu Narayen recently told Fox Business that Apple’s total lack of interest in bundling the forthcoming Flash Player on the iPhone OS was purely a business decision on their part rather than a technological one, and that it “hurts customers” -- despite the fact that Adobe has yet to ship a full mobile version of Flash for any platform.AppleInsider is quick to note that existing mobile devices that run Adobe Flash are using some variation of the desktop runtime or what Adobe calls “Flash Lite,” which is based on the older Flash 8 technology from 2005. It would seem that the biggest hurdle in getting a full mobile version of Flash on such devices is overcoming the software’s voracious appetite for memory as well as processing time, since even the now-delayed Flash 10.1 for mobile requires a fast Cortex A8 processor -- which means it will only run on the highest-end Android, Palm, Blackberry and Symbian phones, even when it does finally debut.Apple CEO Steve Jobs has gone on record describing Flash as “a CPU hog riddled with security holes” and famously dismissed the technology outright by saying that “we don’t spend a lot of energy on old technology.” Ouch.

  • Weekly App Store Picks: July 11, 2009

    Wave good-bye to the week and say hello to the weekend, complete with a hand-picked selection of the latest apps to hit the iPhone. Prior to diving into the picks, it's customary 'round these parts to provide an enlightening summary of the week's iPhone news and Apple-related happenings. First up, accident-prone owners of the iPhone will be particularly pleased to note that Apple is now replacing iPhone displays while you wait. Apparently the magic happens behind the scenes, armed with a giant suction cup your designated Apple Genius will pull the damaged screen off your iPhone before replacing it with a shiny new one. Great news, but potentially expensive if you're out of warranty. We may be in the midst of Summer, but the rumor-mill just keeps on churning out potentially golden nuggets of (dis)information. This time, Apple has apparently ordered a large quantity of super-cheap camera modules, supposedly to be integrated into the next iteration of iPod. Prowl, a new iPhone app specifically for devices on the latest OS 3.0 software, allows you to receive desktop Growl notifications via push. This means that Growl notifications generated by desktop applications, such as torrent clients, instant messaging or email, can now be piped directly to your iPhone when you're on the go. Augmented reality has finally made it to the iPhone in the shape of Nearest Tube, an app that takes your iPhone's camera feed and overlays directions. Designed for use in London, hold the iPhone up and it'll point you to the nearest underground train station — perfect for locals and tourists alike. While it may not be useful for most of our readers outside the UK, it's a compelling look at where the future of iPhone apps may be heading. This year, July 11 doesn't just signify a lazy Summer weekend, it also happens to be the first anniversary of the App Store's official launch. In celebration of this, Apple has compiled a list of its favorite apps from the store, notable picks include Rolando and Dictionary.com's excellent (and free) iPhone app. TheAppleBlog's Darrell Etherington may be a subscriber to Apple's MobileMe service, but I certainly am not. I just don't see the value in paying so much for a service that can be pieced together for free: Gmail, Picasa, Dropbox, Google Calendar and Google Sync. Now yet another reason has been added to the anti-MobileMe list, in the form of GPush — an app that generates an iPhone push notification whenever your receive new mail. Moving on to the picks, this week I've been looking at iTwitter, VideoUp for Facebook, Mecho Wars and Evacuation. iTwitter ($3.99) Several months back, I posted a rundown of the most notable Twitter clients on the iPhone. Since then, the landscape has barely changed: Tweetie is still a firm favorite with the masses, TwitterFon is the well-rounded underdog and Twinkle is the pretty but shallow airhead. Until now, the only notable addition to this perpetual 140-character battle has been TweetDeck, introducing groups and a Palm Pre-style browsing interface. iTwitter isn't a massive leap forward, but it does introduce push notifications — a feature which its competitors have yet to integrate. The app also looks great, is easy to navigate and can be used in landscape or portrait orientation. This is definitely one for the frequent tweeters to check out. VideoUp for Facebook (99 cents) Those who aren't early adopters, take note, this app is for iPhone 3GS owners only. The latest iPhone integrates video recording straight out the box so, unlike the iPhone 3G, no nasty jailbreak-related hacks are needed. By default, you're able to upload your videos direct to YouTube, which is great but not ideal for users of other social networks. VideoUp for Facebook is a simple uploader app that, once you've trimmed your vid down, allows you to upload direct to the social networking service. In particular, Facebook users who are a tad trigger-happy with iPhone 3GS video recording will find this to be an essential download. Mecho Wars (99 cents) I was excited to discover UniWar a few weeks back, a polished turn-based strategy with a sci-fi vibe. Now Mecho Wars joins the fray, bringing turn-based action inspired by Nintendo DS Advance Wars to the iPhone. The graphics have a retro-2D Japanese style to them, with weird robo-bugs and lunar landscapes, and the gameplay even features excellent cut-scenes for the battles. There's also single device multiplayer, which means that you can compete with a friend using one iPhone. The app is also on sale for a limited time, so grab it while you can for just a buck. Evacuation (99 cents) Recently, I've developed a growing obsession for flash games — they're the perfect distraction, quick to loud, easy to learn and occasionally great fun. With gameplay reminiscent of the Kill Bill flash game, one of my favorites of late has been Too Many Ninjas, a hack 'n' slasher with Commodore 64-esque retro graphics. Ported to the iPhone, Evacuation is another fun mini-game from the creator of Too Many Ninjas. It's a puzzler where the goal is to shoot all the purple aliens out of the ship's airlock, without blasting your crew in to space, too. That's all the picks for this week. I'll be back in seven days with more news from the week and picks from the App Store. In the meantime, what apps have you been using this week? Market research you can use: Keep informed about Cloud Computing and IT Infrastructure. Learn more

  • Wall Street Breakfast: Must-Know News

    Stress tests may reveal banks' capital needs. As the May 4 reveal date for stress tests draws closer, officials are considering releasing assessments for each of the 19 banks and may require those that need more capital to disclose how they plan to raise additional funds. Under that scenario, lenders would have to specify whether they want to convert government preference shares, issue more stock or rely on an additional bailout. The push for disclosure is meant to help the public better discern between the health of individual banks. Sources say regulators want the banks to have at least 3% tangible common equity. Lewis: Fed, Treasury urged Merrill silence. According to a recently obtained copy of CEO Ken Lewis' February testimony to New York's attorney general, Bernanke and then-Treasury chief Paulson pressured Bank of America (BAC) to stay silent on its increasingly troubled deal to acquire Merrill Lynch. Despite an obligation to disclose any material financial hits to shareholders, officials pressed Lewis to keep quiet during government-funding negotiations to ensure important financial institutions wouldn't fail. Publicizing Merrill's losses would have allowed Bank of America's shareholders the opportunity to stop the deal and let Merrill collapse. Counter-counter-offer on Chrysler debt. After rejecting a too-rich counter-offer from Chrysler creditors, the Treasury has reportedly raised its own offer in an effort to reach a deal with lenders by the end of the month. The new deal would see lenders get $1.5B of first-lien debt and a 5% equity stake in a restructured Chrysler in exchange for the $6.9B of debt they now hold. The Treasury had previously suggested lenders write off all but $1B of the debt and receive no stock. GM to miss debt payment, idle plants. Trying to avoid bankruptcy ahead of the government's June 1 deadline, General Motors (GM) may rush to close dealerships, scrap models and could idle most of its plants for around two months this summer. The moves could help GM break even with annual sales as low as 10M vehicles. Meanwhile, CFO Ray Young said the company doesn't plan to pay off $1B of debt due June 1, and will instead swap the debt for shares or rely on bankruptcy protection. The tougher public stance towards bondholders is meant to lay the groundwork for what promises to be an ugly debt-for-equity swap GM expects to launch by next week. Hard times for Hartford. Hartford Financial Services (HIG) is said to be seeking bids from rivals including Travelers Companies (TRV) for its flagship property insurance business. Sources said Hartford has been shopping the unit after losses in its life division led to credit downgrades, and that damage from the financial crisis may ultimately lead to a breakup of the insurer. The property unit is estimated to be worth $4B-$8B. Obama meets with credit card chiefs. Obama will meet with executives from the credit card industry today, one day after a congressional panel approved legislation to curb credit card fees and limit consumer penalties. The American Bankers Association is concerned such restrictions will tighten the availability of consumer credit and make it more expensive. Bank of America (BAC), American Express (AXP), Citigroup (C), Wells Fargo (WFC), JPMorgan Chase (JPM), Capital One (COF), Visa (V) and Mastercard (MA) will be among the 13 companies represented. NY cracks down on pension agents. New York State's public pension fund will ban the use of middlemen who help private-equity funds and other investors secure its business. The state is investigating whether these middlemen, called placement agents, were involved in a scheme to receive illegal payments from firms trying to win state business. As one of the nation's largest public pension funds, New York's decision could prompt other states to follow suit. Morgan mulls TARP repayment. Despite reporting a larger-than-expected quarterly loss, Morgan Stanley (MS) CFO Colm Kelleher said the company will 'consider' repaying $10B to the government. The statement comes less than a month after CEO John Mack told employees 'it's the wrong time' to return the money. Morgan Stanley had a Tier 1 ratio of 16.4% at the end of March, or 12.9% if the bank repays TARP funds. Shares +2.9% premarket (7:00 ET). Credit Suisse profit beat. Credit Suisse (CS) posted a better-than-expected Q1 profit, bouncing back from several quarterly losses in 2008. The bank saw a net profit of 2B Swiss francs ($1.72B), more than double analysts' forecasts. Though short on details for its 2009 outlook, the bank said it is "in a position to weather the storms and perform well when market opportunities arise." Shares +10.5% premarket (7:00 ET). Apple shines on iPhone sales. Apple's (AAPL) quarterly earnings easily beat consensus estimates (see details below) as strong sales of iPods and iPhones held up despite the weak economy. Profit was also helped by declining commodity prices for key product components like aluminum and memory chips. This was the company's first quarter since CEO Steve Jobs went on medical leave. eBay gets okay on Gmarket buy. eBay (EBAY) won regulatory approval from South Korea's antitrust watchdog to proceed with its planned purchase of Gmarket (GMKT). A majority of Gmarket shareholders have already agreed to the cash tender offer. Glaxo to release study after long delay. GlaxoSmithKline (GSK) will release the first study comparing its cervical cancer vaccine with Merck's (MRK) blockbuster Gardasil at a May 10 medical meeting. The fact that the results are being released 14 months after the study concluded and at a relatively unknown meeting have left investors and analysts puzzled. Freddie CFO takes his own life. Acting CFO of Freddie Mac (FRE) David Kellerman was found dead in his home in what appears to be a suicide. Kellerman had worked at the mortgage giant for 16 years. House prices rise slightly (.pdf). FHFA's House Price Index showed U.S. home prices rose 0.7% in February M/M, bringing the twelve-month total to -6.5%. January's previously reported 1.7% gain was revised down to 1.0%. Earnings: Thursday Before Open AmerisourceBergen (ABC): FQ2 EPS of $0.95 beats by $0.06. Revenue of $17.31B (-2.5%) vs. $17.93B. Sees full-year EPS of $3.18-3.30 vs. $3.19. (PR) Alexion Pharmaceuticals (ALXN): Q1 EPS of $0.16 beats by $0.02. Revenue of $81M (+78.7%) vs. $82M. (PR) AU Optronics (AUO): Q1 EPS of -$0.71 misses by $0.04. Revenue of $1.5B (-66.7%) in-line. Expects utilization rates to improve substantially in Q2. (PR) AutoNation (AN): Q1 EPS of $0.23 beats by $0.07. Revenue of $2.47B (-35.6%) vs. $2.74B. Says it reduced debt by $500M in Q1, and remains in compliance with all debt covenants. Sees sales improving in H2. (PR) Black & Decker (BDK): Q1 EPS of $0.22 beats by $0.14. Revenue of $1.07B (-28.2%) vs. $1.16B. Sees full-year EPS of $1.50-1.90 vs. consensus of $1.79. (PR) Bunge (BG): Q1 EPS of -$1.76 misses by $2.25. Revenue of $9.2B (-26.2%) vs. $11B. (PR) Canadian Pacific Railway (CP): Q1 EPS of C$0.39 misses by C$0.09. Revenue of C$1.07B (-6.6%) vs. C$1.04B. "The unprecedented temporary decline in traffic in some of our key markets (as measured by carloads), particularly potash (-70%), Canadian coal (-30%), and automotive (-43%) has resulted in more than 2,400 employee layoffs to date." (PR) Celestica (CLS): Q1 EPS of $0.13 beats by $0.04. Revenue of $1.47B (-20%) vs. $1.51B. Q2 guidance in line. (PR) CIT Group (CIT): Q1 EPS of -$1.30 misses by $0.84. Tier-1 capital ration 9.3%. (PR) CME Group (CME): Q1 EPS of $3.20 in-line. Revenue of $647M (+3.5%) vs. $656M. Average rate per contract increased 12% to $0.83. (PR) ConocoPhillips (COP): Q1 EPS of $0.56 beats by $0.14. Revenue of $30.7B (-44.1%) vs. $26.34B. Shares +4.3% premarket. (PR) CONSOL Energy (CNX): Q1 EPS of $1.08 beats by $0.15. Revenue of $1.22B (+18.8%) in-line. "Energy companies with less than stellar financial positions could find it very difficult to obtain reasonable financing terms to maintain their operations. We believe that this will impact supply and could set the stage for higher coal and natural gas prices as early as '10." Shares +3.5% premarket. (PR) Cooper Industries (CBE): Q1 EPS of $0.47 beats by $0.01. Revenue of $1.26B (-18.7%) vs. $1.32B. Sees Q2 EPS of $0.50-0.60 vs. $0.60 and full-year EPS of $2.30-2.60 vs. $2.40. (PR) Danaher (DHR): Q1 EPS of $0.72 misses by $0.01. Revenue of $2.63B (-13.2%) vs. $2.67B. (PR) Diamond Offshore Drilling (DO): Q1 EPS of $2.51 beats by $0.29. Revenue of $886M (+12.7%) vs. $878.5M. (PR) EMC (EMC): Q1 EPS of $0.16 in-line. Revenue of $3.15B (-9.2%) vs. $3.25B. Sees global IT spending down in the low-double-digits for 2009. Expects $450M in cost reductions, up from a previous estimate of $350M, but says margins will decline due to weaker IT spending. (PR) ENSCO International (ESV): Q1 EPS of $1.56 beats by $0.04. Revenue of $514M (-9.6%) in-line. (PR) Exelon (EXC): Q1 EPS of $1.20 beats by $0.07. Revenue of $4.75B (+3.6%) vs. $4.62B. Reaffirms full-year EPS guidance. Shares +0.4% premarket. (PR) Fifth Third Bancorp (FITB): Q1 EPS of -$0.04 beats by $0.23. Tier 1 capital ratio of 10.9%. Tangible equity ratio of 7.9%. (PR) Goodrich (GR): Q1 EPS of $1.35 beats by $0.28. Revenue of $1.7B (-2.8%) in-line. Sees full-year EPS of $4.50-4.75 vs. $4.63, and revenue of $6.9B vs. $7.1B consensus. (PR) Hershey Foods (HSY): Q1 EPS of $0.38 beats by $0.03. Revenue of $1.24B (+6.5%) vs. $1.19B. Reaffirms 2009 net sales growth of 2-3%. Sees EPS increasing at less than its long-term objective of 6-8%. (PR) JetBlue Airways (JBLU): Q1 EPS of $0.08 beats by $0.05. Revenue of $793M (-2.8%) vs. $810M. Operating margin of 9.3% vs. 2.2% a year ago. First profitable Q1 since 2005. Shares +9.9% premarket. (PR) L-3 Communications (LLL): Q1 EPS of $1.66 beats by $0.03. Revenue of $3.64B (+3.7%) in-line. Reaffirms full-year guidance. (PR) Logitech (LOGI): FQ4 EPS of -$0.20 misses by $0.26. Revenue of $408M vs. $496M. Gross margin fell to 25% from 35.6% last quarter. "Our sales were negatively impacted by the combination of weak consumer demand and the accelerating reset by our channel partners of their weeks of supply." Shares -11.3% premarket. (PR) Marriott International (MAR): Q1 EPS of $0.24 beats by $0.10. Revenue of $2.5B (-14.8%) in-line. Issues downside EPS guidance for Q2 of $0.20-0.23 vs. $0.26 consensus. Maintains guidance for FY '09 of $0.88-1.02 EPS. (PR) Marshall & Ilsley (MI): Q1 EPS of -$0.44 misses by $0.11. Revenue of $M in-line. Q1 loan-loss provision of $478M. Shares +5.6% premarket. (PR) National-Oilwell Varco (NOV): Q1 EPS of $1.13 beats by $0.07. Revenue of $3.48B (+29.6%) vs. $3.29B. "Though the pace of new capital equipment orders has slowed in the short run, we believe investment in drilling equipment will resume, to enable the industry to explore new oil and gas frontiers. Nevertheless market conditions remain very challenging, and the timing of a recovery is uncertain." Shares -4.4% premarket. (PR) NII Holdings (NIHD): Q1 EPS of $0.43 beats by $0.07. Revenue of $M (+961%) in-line. Shares +2.3% premarket. (PR) Novartis (NVS): Q1 earnings of $1.96B ($0.87/share) vs. consensus of $1.89B. Sales fell 2% to $9.71B. Sees drug sales up mid-to-high single-digits. Shares +4.7% premarket. (Bloomberg) Occidental Petroleum (OXY): Q1 EPS of $0.50 beats by $0.13. Revenue of $3.07B (-49%) vs. $3.18B. Production was up almost 8% in Q1. (PR) Philip Morris (PM): Q1 EPS of $0.74 beats by $0.05. Revenue of $5.6B (-5.5%) vs. $5.48B. Reaffirms full-year guidance of $2.85-3.00 vs. consensus of $3.02. (PR) PNC Financial Services (PNC): Q1 EPS of $1.03 beats by $0.61. Revenue of $3.9B (+112.6%) vs. $3.5B. (PR) Potash (POT): Q1 EPS of $1.02 beats by $0.16. Revenue of $922.5M (-51.2%) vs. $975.5M. Issues downside EPS guidance for Q2 of $1.10-$1.50 vs. $2.21 consensus, and FY '09 EPS of $7.00-$8.00 vs. $9.65. (PR) RadioShack (RSH): Q1 EPS of $0.34 beats by $0.12. Revenue of $1B (+5.6%) vs. $0.94B. Comps were up 5% vs. Q1 2008. (PR) Raytheon (RTN): Q1 EPS of $1.11 beats by $0.10. Revenue of $5.88B (+9.9%) vs. $5.6B. Full-year guidance in line. Shares +2.4% premarket. (PR) Royal Caribbean Cruises (RCL): Q1 EPS of -$0.17 beats by $0.17. Revenue of $1.33B (-7.2%) in-line. Sees full-year EPS of $1.35 vs. consensus of $0.97. Shares +13.5% premarket. (PR) Sigma-Aldrich (SIAL): Q1 EPS of $0.68 beats by $0.04. Revenue of $519M (-8.8%) vs. $532M. Full-year guidance in line. (PR) Suncor Energy (SU): Q1 EPS of $0.24 beats by $0.12. The decrease in earnings was primarily from lower price realizations, with benchmark commodity prices significantly weaker in Q1 '09 vs. Q1 '08. (PR) SunTrust Banks (STI): Q1 EPS of -$0.46 beats by $0.19. Revenue of $2.24B (+16.3%) vs. $2.06B. Majority of loss was due to a $715M goodwill impairment charge. Tier-1 ratio estimated at 11%, up 13 points from last quarter. (PR) Supervalu (SVU): FQ4 EPS of $0.87 beats by $0.08. Revenue of $10.82B (+4.2%) in-line. (PR) Thermo Fisher (TMO): Q1 EPS of $0.62 misses by $0.08. Revenue of $2.26B vs. $2.42B. Sees full-year EPS of $2.80-3.10 vs. $3.15, and revenue of $9.6-9.9B vs. $10.14B. "Our customers are clearly delaying their capital purchases in the current environment." Shares -7.6% premarket. (PR) Union Pacific (UNP): Q1 EPS of $0.72. beats by $0.06. Revenue of $3.42B (-20%) vs. $3.55B. "The difficult economic conditions continue to affect our business volumes. During this challenging time, we are reducing costs across the board..." Shares +2.7% premarket. (PR) UPS (UPS): Q1 EPS of $0.52 misses by $0.04. Revenue of $10.94B (-13.7%) vs. $11.44B. Sees Q2 EPS of 0.45-0.55 vs. consensus of $0.65. "Economic indicators tell us recovery in the U.S. might begin late this year, but more likely not until 2010." Shares -3.7% premarket. (PR) US Airways (LCC): Q1 EPS of -$2.28 beats by $0.10. Revenue of $2.46B (-13.6%) in-line. "Our first quarter loss reflects the weakness in the global economy that has negatively impacted revenues throughout our industry. The steps we have taken to adapt to this environment are having a significant positive impact, though, as evidenced by our significant improvement in earnings excluding special items and fuel hedges." Shares +6% premarket. (PR) Zimmer (ZMH): Q1 EPS of $0.95 beats by $0.01. Revenue of $993M (-6.3%) vs. $1B. Sees full-year EPS of $3.85-4.00 vs. $3.88. (PR) Earnings: Wednesday After Close Apple (AAPL): FQ2 EPS of $1.33 beats by $0.24. Revenue of $8.16B vs. $7.96B. Sees FQ3 EPS of $0.95-1.00 vs. consensus of $1.12, and revenue of $7.7-7.9B vs. $8.28B. Mac sales of 2.22M (-3% Y/Y). iPod sales 11M (+3%). iPhone sales 3.79M (+123%). (PR) Alliance Data Systems (ADS): Q1 EPS of $1.19 beats by $0.09. Revenue of $480M (-3.8%) vs. $488M. Sees Q2 EPS of $1.05 vs. $1.22. (PR) eBay (EBAY): Q1 EPS of $0.39 beats by $0.05. Revenue of $2.02B (-7.8%) vs. $1.94B. (PR) Equifax (EFX): Q1 EPS of $0.58 beats by $0.04. Revenue of $453M (-10%) vs. $448M. (PR) F5 Networks (FFIV): FQ2 EPS of $0.38 in-line. Revenue of $154M (-3.1%) in-line. Says Feb. sales were particularly slow, but March improved significantly. (PR) Leggett & Platt (LEG): Q1 EPS of $0.06 misses by $0.01. Revenue of $718M (-28.1%) vs. $807M. Sees full-year EPS of $0.60-0.90 vs. $0.72, and revenue of $2.9-3.3B vs. $3.39B. (PR) Lam Research (LRCX): FQ3 EPS of -$0.71 misses by $0.05. Revenue of $174.4M (-71.6%) vs. $175.9M. (PR) Noble (NE): Q1 EPS of $1.62 beats by $0.16. Revenue of $896M (+4%) in-line. (PR) Novellus Systems (NVLS): Q1 EPS of -$0.47 beats by $0.04. Revenue of $98.9M (-68.6%) vs. $101.7M. Says it's cautiously optimistic order activity has stabilized. (PR) Pactiv (PTV): Q1 EPS of $0.69 beats by $0.23. Revenue of $766M (-5.2%) vs. $732.5M. Sees Q2 EPS of $0.54-0.58 vs. $0.51 and full-year EPS of $2.15-2.25 vs. $1.89. "Compared with the first quarter of last year, we benefited from lower raw material costs, as well as lower logistics costs, and improved productivity." (PR) Robert Half International (RHI): Q1 EPS of $0.06 in-line. Revenue of $823M (-32.8%) vs. $844M. (PR) SLM Corp. (SLM): Q1 EPS of -$0.03 vs. consensus of $0.12. Loss was partly the result of ongoing dislocation in the commercial paper market. (PR) VMware (VMW): Q1 EPS of $0.25 beats by $0.05. Revenue of $470M vs. $474M. Sees Q2 revenue flat to down vs. a year ago. (PR) Xilinx (XLNX): FQ4 EPS of $0.26 beats by $0.08. Revenue of $395M (-17%) vs. $383M. (PR) Yum! Brands (YUM): Q1 EPS of $0.48 beats by $0.08. Revenue of $2.22B (-8.1%) vs. $2.33B. Sees full-year EPS of $2.10 vs. $2.08. Says Q2 likely to be its most challenging quarter. (PR) Today's MarketsOverseas markets moved higher Thursday, giving a boost to futures.

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