Asian Tech Stock Weekly Summary (July 13 - 19)
JapanHardwareKonica Minolta Holdings Inc. would start output at its new factory in Japan that makes high-tech film used in LCD panels by autumn 2010 due to a strong recovery in panel and TV demand. Konica Minolta had planned to begin production at the new plant in autumn 2009, but the company late last year decided to delay the start-up as the global downturn forced panel makers to cut output. Konica Minolta dominates the global market for triacetyl cellulose (TAC) film, which protects the...
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Will Google's Android Play DOS to Apple's iPhone?
Daniel Eran Dilger Today's broad array of smartphone operating system contenders are offering lots of potential answers to a problem that only requires one. It appears the market has two options ahead: either pool generic hardware makers behind a single operating system and deliver a smartphone marketplace that resembles the Windows PC market, or watch them fall to a dominant leader and have a smartphone market that resembles Apple's iPod ecosystem. This decision isn't going to be made by a class of intellectual elite, or by government mandate. it's going to be made by the market itself. Here are the factors that will influence the outcome, either marginalizing Apple's iPhone into a niche as the company has twice experienced previously at the hands of DOS in 1981 and Windows in 1991, or positioning it as the dominant leader as Apple has achieved for itself with the iPod since 2001. The third segment in this series looks at Google's Android and the Open Handset Alliance as a possible “DOS-attack” against Apple's iPhone. Subsequent segments will look at Nokia's newly opened Symbian and other mobile contenders challenging the iPhone. Will the iPhone Meet its Match from a Modern Day DOS? Will Windows Mobile Play DOS to Apple’s iPhone? Will Google's Android Play DOS to Apple's iPhone? Will Symbian Play DOS to Apple's iPhone? Google Acquires Android. In 2005, Google purchased a startup named Android, which had been in business for nearly two years. The secretive startup was known only to be working on software for mobile phones. It was being run by a who's who of mobile industry veterans, including Andy Rubin, the founder of Danger. Rubin had earlier worked at WebTV along with Chris White and Andy McFadden, both of whom had also joined Android. Richard Miner of Orange and Nick Sears of Tmobile also brought their mobile provider experience to Android. At the time of the acquisition, Google didn't announce any plans for Android and instead only told BusinessWeek, “We acquired Android because of the talented engineers and great technology. We're thrilled to have them here.” It appeared that Google was only going to be expanding its search services for mobile phone users, along the lines of the Google SMS answer system it had recently released. Google Buys Android for Its Mobile Arsenal - BusinessWeek Windows XP Media Center Edition vs Apple TV: The Fall of WebTV The GPhone Myth. As reports began to leak out about talks between Google and hardware makers throughout 2007, rumors began to fly about “the GPhone,” a competitive offering that was supposed to take on the iPhone. Some phone enthusiasts hoped Google would jump in to rescue the struggling OpenMoko project and turn it into a viable project that could attack Apple's new smartphone. In October 2007, I printed the Great Google GPhone Myth, taking apart the idea that Google would be directly competing against the iPhone, and describing that Google was really working on a free alternative to Windows Mobile as a conduit for getting its search and related services on a broader variety of mobiles. Google's services were already on the iPhone. In November, Google played its hand: it had organized a consortium of companies called the Open Handset Alliance to develop open standards for mobiles. The first product from the group would be Android, a mobile operating system built on the Linux kernel. Google wasn't getting into the phone handset business at all; it was only making sure that its mobile search products would not risk being marginalized by the threat of Windows Mobile on phones in the same way Microsoft had been working to leverage its PC monopoly to push Google search off the Windows desktop. The Great Google gPhone Myth Introducing Android: Leader of Linux. Two weeks later, Google released an early version of the Android software. On top of a Linux kernel, Android uses a specialized version of a Java Virtual Machine that takes Java language code and turns it into what Google calls “Dalvik bytecode” rather than Java bytecode as a standard JVM would. This allows Google to leverage existing and familiar Java language tools without paying Sun for a Java license. Like Mac OS X and its fraternal iPhone OS, Android includes a variety of open source libraries, including SQLite and WebKit. On top of that, Google developed a series of frameworks that handle the tasks Cocoa Touch does on the iPhone. Android also bundles a set of applications. While Apple adapted its existing Mac OS X to work in a mobile environment to create the iPhone OS, Android is more like a customized Java environment running on a specialized mobile Linux variant: elements of maturity in an otherwise experimental new platform. What is Android? -Google Android was by no means the first mobile OS using Linux. Both Palm and its amputated ACCESS software arm have Linux-based mobile platforms. Nokia has Maemo, which it uses in its Internet Tablets, and also recently acquired Trolltech and its Qtopia mobile Linux platform. Motorola has teamed up with MontaVista Software to use its Mobilinux. Intel created the Moblin project for mobile Linux, aimed at Internet devices. Google's OHA also isn't the first consortium to attempt to standardize a mobile Linux platform. The OSDL started the Mobile Linux Initiative to define requirements for hardware; the Consumer Electronics Linux Forum (CELF) then worked to define various phone profiles aimed at the Japanese market; the Linux Phone Standard (LiPS) Forum tried to do the same thing in Europe. In 2007, LiPS was folded into the new LiMo Foundation, along with the OSDL. All of these committees have had some overlap and some complementary features. Several of Google's OHA partners are also LiMo members, including NTT DoCoMo, Wind River, and Motorola. So why didn't Google just join LiMo? “LiMo, very candidly, wasn't moving fast enough,” OHA board member John Bruggeman told CNET. Google hopes to herd the Linux cats into a progressive, structured platform that can battle against Symbian and Windows Mobile to succeed as the new DOS of smartphones. Will Google fracture or unify mobile Linux? The Presumption of the Necessity of DOS. The previous segment examining Windows Mobile pointed out how the PC industry as a whole assumed that Microsoft's desktop Windows monopoly would easily take over dominance in the MP3 player market, pushing Apple into a niche position. This was expected because DOS had pushed Apple's early computers into a reduced role starting in 1981, and Microsoft had repeated this again in 1991 when the DOS world migrated to Windows, effectively pruning Apple's Macintosh into a Bonsai platform. The inability of one company to dominate any product category has been frequently repeated by PC industry pundits as a given, despite the fact that history is full of examples of this happening. Sony dominated personal music players for two decades under the Walkman brand even while equally large competitors tried to push it from this position; Nintendo has similarly owned handheld gaming despite ill-fated efforts to grab a piece of its pie by products running a generic platform such as Microsoft's WinCE (Gizmondo), Linux (GP32), and Symbian (N-Gage). In fact, outside of the Windows/DOS PC, there are actually few examples of a generic platform taking over an industry. Nearly every other consumer-facing product uses proprietary platforms: car makers, stereo equipment, appliances and so on typically all use designs custom to their maker. The paradox of the Windows PC market has been that Microsoft's broadly licensed software supposedly saves hardware makers from investing in software development while ensuring compatibility, when in reality it adds significant costs to PC makers while limiting their ability to differentiate themselves. That explains why PC makers have been perpetually merging together and going out of business while Microosft has rolled in money over the last two decades. Parallel efforts to copy Microsoft in broadly licensing an operating system have regularly failed: IBM's OS/2, Apple's Mac OS, Palm's PDA OS, even Microsoft's own efforts to duplicate Windows dominance in other markets, from copy machines to PDAs to smartphones to SPOT watches to music players. The closest copy may be Symbian, but its customers are partners, not simply consumers of a generic third party's operating system as Windows licensees are. That indicates it is not necessary to duplicate the dominance exercised by Microsoft over the PC industry in the smartphone market. Google's Android and Symbian exist more as technology sharing pacts among manufacturers, but both aspire to take Microsoft's DOS role among smartphones. However, the idea that Apple's iPhone must be dethroned by a modern-day DOS, whether Windows Mobile, Android, or Symbian, is not just debatable, but does not sync with the reality of more recent events. Apple's recent history of the iPod further refutes the idea that a software analog to Microsoft is needed. The iPod Emergence: Apple & Pixo vs IBM & Microsoft. Apple's iPod in 2001 made no effort to clone the DOS business model; it actually did the opposite. When Apple entered the market, there were a number of existing MP3 devices using custom software, hardware designs, and DRM codecs. The iPod used off the shelf components to deliver a custom MP3 player using third party software, but Apple also added its own technologies: easy to use sync with iTunes, a fast Firewire interface that made uploading music far faster than the prevailing USB 1.0, and an attractive industrial design. With the iPod, Apple played the role of IBM in 1981, using Pixo's embedded operating system to enter the market quickly, just as IBM had used DOS. The difference was that Apple didn't direct any market attention toward Pixo and added a lot of value on top of that core embedded OS. A modern day Compaq couldn't simply clone the hardware and license Pixo to run on it in order to compete against the iPod, because the iPod was much more than just generic hardware running Pixo software. As the iPod developed, Pixo's role diminished and was eventually displaced. Just like IBM, Apple jumped into a new market just as demand was beginning to explode. Apple made MP3 players far more attractive to a general audience by delivering greater playback capacity than most entry level devices offered, along with an ease of use that encouraged buyers to jump in at the higher end of the market. That left Apple with not only the lion's share of the market, but also by far the most profitable segments of the market. Two decades prior, IBM badly fumbled its play with the early PC and ended up irrelevant in the PC world by the late 80s, sideswiped by Microsoft's DOS and the cloners who were licensing it in parallel, notably Compaq and later HP and Dell. Steve Jobs had witnessed that happen, and was determined to not let it happen again to Apple. Rather than being manipulated by a software middleware vendor as IBM had, Apple worked to incrementally develop the iPod market itself. After consuming the hard drive-based player market, Apple took on the Flash RAM-based market with a tiny hard drive system used in the iPod Mini, and followed up with Flash-based devices of its own in the Nano and Shuffle. This allowed Apple to progressively serve an increasingly wider market, incrementally growing upon an established foundation. With the iPod, Apple became, in effect, an IBM with its own internal Microsoft. Microsoft's Failure Despite Features. In contrast, Microsoft entered the music player market by promoting music player hardware reference designs around WinCE. However, it was unable to ship a finished design until the iPod had become firmly established around 2005. Later branded as PlaysForSure, the devices were sold by various hardware makers and all purported to support the same DRM and the same music subscription services while also offering a broader array of hardware that presented video before the iPod did, supported wireless before the iPod, and so on. Despite these unique features, all of those PFS designs still failed. Microsoft blamed the failure of PFS upon its music store and hardware partners and decided to take Apple on itself in 2006. It relaunched a Toshiba PFS player as its own device under the Zune brand, adding WiFi music sharing features and a larger display than the current Pods had. It failed dramatically as well. Did Microsoft's attempts to float a new DOS among music players fail because of Apple's success, or due to Microsoft's own problems? The failure of the Zune, which followed the iPod model rather than the DOS model, seems to suggest that Microsoft itself was to blame. Consider too that Microsoft's Windows Mobile phones, which use the same underlying operating system as its failed PlaysForSure music players and the Zune, had similarly flopped even before Apple could release a charismatic phone equivalent to the iPod. Of course, when the iPhone was released, it hit Windows Mobile hardest. The iPhone made Windows Mobile Smartphones look ridiculous and underpowered, and made Windows Mobile Pocket PC phones look clumsy and awkward, despite the fact that they both supported a variety of features the iPhone didn't, including the ability to edit documents, capture video, send MMS, and so on. Simply adding on features did not enable Microsoft to compete against Apple. The only conclusion that can be drawn from all this is that competing against Apple requires more than just having a feature arsenal. Microsoft's failures in themselves do not necessarily mean that Google's Android will fail in its attempts to float its own smartphone platform. Why Microsoft’s Zune is Still Failing Microsoft’s Zune, Vista, and Windows Mobile 7 Strategy vs the iPhone Will Google Succeed where Microsoft Failed? Microsoft's demonstrated inability to successfully enter consumer markets for MP3 players and smartphones has given observers little faith that the company will somehow turn things around in late 2009 when its next generation of devices are expected to be released. However, prior to that the first fruits of Google's efforts to build its own smartphone operating environment will arrive. Will Google's Android take over Microsoft's crown as the “DOS vendor” among smartphones? Supporters of Google's Android project point to some parallels between Android for smartphones and Windows on the PC: Android will allow hardware makers to differentiate in ways that can offer features Apple can't (or doesn't want to); it should allow software developers to offer features Apple does not allow on the iPhone; it embraces open, hobbyist experimentation in ways that Apple currently isn't; and it opens the potential for content providers that Apple is not interested in allowing. Openness is Android's key competitive feature. Will all this openness allow Google to unseat the iPhone to become the primary platform developers want to participate in, and subsequently soak up the market for third party hardware makers that Windows Mobile serves? While Google currently has no market share due to the fact that no Android phones have yet shipped, it does have broad vocal support from a variety of the same kinds of hardware manufacturers that supported DOS and Windows and helped to make those platforms successful in the desktop PC market. HTC and Android. The first Android phone is expected to be the HTC Dream; Taiwan's HTC (High Tech Computer) also manufactures Palm's Treo Pro phone as well as many of the most visible Windows Mobile devices. In addition to models produced under its own name, HTC also sells Windows Mobile devices under the Dopod brand, as well as no-name phones branded by providers, such as AT&T, Orange, Sprint, T-Mobile, Verizon Wireless, Vodafone, and others. HTC will also be building the XPERIA X1 Windows Mobile phone for Sony Ericsson. HTC was quick to throw its support behind Android despite its long term alliance with Windows Mobile. Why would it so enthusiastically support an unproven platform from a company that has no experience in consumer hardware platforms? One can only assume that HTC is not happy with the current state of Windows Mobile, and desperately wants another “DOS” to succeed where Microsoft's has so spectacularly failed. As an Original Design Manufacturer for Palm, HTC watched as Palm adopted Windows Mobile in place of the Palm OS and subsequently fell even deeper into crisis. Palm's only successful phone since has been its Palm OS-based Centro. HTC undoubtedly sees Android as its ticket to becoming the next Dell, but without a similar dependance upon Microsoft. Android for mobile phones is essentially playing the role of Linux for PCs, except that it has the backing of a major company behind it. Can Android Take on the iPhone with Openness as its Feature? As great as this sounds, it's important to consider that Linux on the desktop has made no significant progress in eating into Windows dominance after a decade of trying. Being open, free, flexible, and decentralized hasn't been enough of an advantage to get consumers to migrate from Windows to Linux in any fraction of significance. Similarly, in the music business, Linux-based MP3 players have had no impact on the iPod, despite offering more features, flexibility, support for additional codecs, and so on. In the mobile phone area, Linux enjoys a sizable portion of the smartphone market, but this is almost entirely due to phones sold by Motorola in China, where the advantages of Linux' openness are void. Motorola's Linux phones offer nothing to users in terms of openness or flexibility, and are really no different in terms of features than other appliance 'feature phones' based upon closed operating systems. And again, a key problem with assaulting Apple in a feature war is that neither the iPod nor the iPhone became popular by being “highly featured.” They both delivered perhaps 80% of the functionality found in all other devices in the market. Rather than trying to match every feature and cater to every niche as Microsoft had with Windows Mobile, Apple's devices did a few things very well at launch, and incrementally developed into full featured devices that still lack some of the more unique features of their competitors. Further, in terms of openness, the demographic that embraces Linux' characteristic freedoms is not the same as the demographic that buys smartphones in quantity and then pays for data service. This is a critical fact to consider because a big part of the iPhone's success stems from the fact that it is being pushed by mobile providers who want to capture the cream of the market willing to pay a premium for data services. The Frankenphone. Combining the fractured aesthetic of HTC's Windows Mobile phone hardware with Android's software, based upon Linux' perpetually unfinished DIY openness and Google's Java-like development platform, will not result in a product similar to the iPhone. Instead, it will look a lot like phones that have already failed in the market. Apple's advantage comes from slick hardware designs with a close attention to detail, combined with software that purposely does less so that it can do what it does better. Even Apple's own conservative attempts to broaden its software capabilities with iPhone 2.0 have resulted in instability problems that can be blamed upon both Apple's early releases of its phone operating system and software from inexperienced third party developers new to the platform. Would the current frustrations with iPhone 2.0 be somehow mitigated by additional openness that also embraced all kinds of variables from different hardware makers with less quality control than Apple, a loose committee of additional cooks working to serve up operating system features targeted at every possible conceived need, and a wider third party software group with fewer constraints on illegal behaviors? The Failure of Open. While it is politically unpopular to criticize the well meaning efforts of open source contributors, the failure of Linux on the desktop, the failure of the vaporware Indrema game console, and the failure of the OpenMoko project to deliver a workable phone within a year of its deadline all underline the serious problems open development faces in the world of consumer oriented devices. Open has simply failed to deliver on its promises in the world of consumer hardware. OpenMoko was supposed to release its first mobile phone to consumers for $250 several months in advance of the iPhone. When the iPhone shipped, the group then announced new plans to get its phone out by the end of 2007. Instead, this spring the group announced new plans to move to an entirely different development platform, and ship its phone mid year for $400 with limited functionality and incomplete software outside of basic GSM phone features. Linux's notable successes, from Motorola's Linux phones to the Tivo DVR to Linksys Routers, have often come without any associated openness or freedom, and were instead delivered simply to provide their manufacturer with a free kernel to build upon. This indicates that while Linux may find its way into an increasing number of smartphones, it will likely not be accompanied by the glorious freedom of an open development environment Google has said it would offer with Android. Apple iPhone vs the FIC Neo1973 OpenMoko Linux Smartphone Can Google Succeed Where Open Has Previously Failed? Despite “openness” being Android's strongest competitive feature compared to Apple's iPhone, Google recently revealed that its wide-open development model is intentionally gravitating towards a closed association of top tier partners due to practical considerations. In July, Google accidentally sent out a notice that revealed that it had been seeding private SDK updates to only a subset of its contributors, angering those who believed that Android would be as open as Linux on the desktop or the OpenMoko project. Further, Google has restricted initial development to higher level APIs just as Apple did, further indicating that Google itself realizes that being wildly open to impress a minority of hobbyists will not result in the commercial success of its new platform. That serves to neuter Android's primary advantage over the iPhone. Without delivering on the premise of being wide open, Android is really just a less mature set of Java libraries used to create a specialized binary that runs on a Linux foundation. Unlike Apple's iPhone, Android phones won't have a slick user interface developed by professional artists, nor the iPhone's legacy of mature software development frameworks crafted over the last thirty years, nor the iPhone's tightly integrated hardware with award winning industrial design, nor its marketing power tied into the iPod and Apple's retail stores. Android won't be an open iPhone, it will only be a Windows Mobile phone with a better kernel that runs specialized Java software instead of Win32 or .NET code. Don't expect consumers to be impressed by that. The Biggest Missing Feature. There is one remaining factor that strangles to death any last remaining hope that Android might assassinate the iPhone and assume the crown of the “DOS of smartphones.” That is: Android delivers zero price advantage to consumers. In 1981 and 1991, consumers who wanted Apple computers faced the sticker shock of a somewhat arrogant price tag. Apple sold its computers, as it still does, at the higher end of the market, but there was simply far more range in prices available. In 1981, that meant the Apple II was $2600 and the new Apple III was $3500, even before you added a monitor. On the low end, Commodore sold its far less powerful, but “still a computer” Vic-20 for $300, while IBM entered the market with the IBM PC at $3000. Over the next few years, Apple focused on delivering additional sophistication at the same price, releasing the $10,000 Lisa and then the $2,500 Macintosh. IBM continued selling PCs in the same $3,000 to $10,000 range, but other DOS PC vendors began selling machines at prices that ranged as low as $1500. That left Apple with a roughly $1000 price premium over low end PCs. The products weren't really comparable, but consumers only saw the huge price difference. In 1991, Apple was still selling moderate to high-end Macintoshes for $3,800 to $10,000; the crippled Mac LC was $2500, and obsolete-at-birth Mac Classic ranged from $999 to $1500. Windows allowed PC makers to ship a functional $1500 PC and claim a rough approximation to Apple's $2500 entry level system, maintaining that apparent $1000 price premium. Today, pundits are lucky to find a Dell or HP system that is even a couple hundred dollars less than a comparable Mac. However, in the smartphone business, the iPhone 3G is now the same price, if not less, than generic competing phones on the market. Even more significant is the fact that the price of the phone hardware is nearly nothing compared to the cost of the service plan. This fact simply eases any price premium that could cause buyers to flock to a smartphone running a generic operating system over buying the iPhone 3G, regardless of whether it runs Windows Mobile or Android. 1990-1995: Planting Software Seeds Android Partners Have Already Failed. That same pricing principle similarly prevented buyers from considering many of the alternatives to the iPod. While Apple's original iPod models were more expensive than many of the first MP3 players on the market, they were price competitive with models offering similar features. By 2004, it was Apple who was undercutting MP3 competitors on price. Microsoft offered zero price advantage when it began selling the Zune, a major factor in its failure, but Microsoft simply couldn't out-price the iPod; it was already losing money offering the Zune at the same price as the iPod. Apple now has tremendous market power in buying RAM and other components that will prevent any competitors from being able to offer a huge discount over the iPhone's $199 price tag. Even if competitors were to give their phones away, they would only offer a $200 discount to users who would then still need to pay the same mobile fees to use the phone. Android's other partners, including Samsung and LG, have already failed to capture any significant market share in the music player market. Are they going to maintain their position as smartphone makers now that they face similar competition from Apple, its iPod ecosystem, its iTunes Music and Apps Store, Apple's retail store experience, and other factors that are pushing the iPhone? If they can, it is not obvious how partnering with Android will help. Other Problems for Android. Android was announced in early November 2007 and was followed with an early preview SDK within a couple weeks, a month ahead of Apple's initial announcement of the iPhone 2.0 SDK. However, between March and July 2008, Apple delivered nine progressive releases of its SDK, opened its App Store, and sold 60 million apps, raising $30 million to support iPhone software development in just the first month. It has since released three more SDK updates to developers related to iPhone 2.1, which is expected next month. Android just published its first open SDK beta update earlier this week, warning developers that “applications developed with it may not quite be compatible with devices running the final Android 1.0.” Additionally, Android still has no phones available. By the time the HTC Dream is expected to launch, Apple will have an installed base of around ten million iPhone (and iPod touch) users supporting software development through iTunes. The business model for selling Android apps is no better than that for selling jailbreak iPhone apps: there is no iTunes Apps Store to promote them, so users will have to track them down on their own. Android developers also have no real freedom that jailbreak iPhone developers lack. The only difference is that there are ten million iPhones to sell jailbreak apps to, and currently zero Android phones. If selling a jailbreak iPhone app sounds like more trouble than its worth, imagine trying to sell Android apps to a non-existant audience. Now add the official iPhone App Store into the mix, where publicity, promotion and profits are booming. What platform is going to have the most applications? How many users will flock to a smartphone platform with no apps? The wisdom of releasing a desirable phone and achieving a significant installed base before releasing an SDK makes a lot more sense in retrospect. Additionally, while Apple has a decade of experience in shipping regular updates to Mac OS X and its Xcode developer tools, Google has only shipped a random assortment of web-oriented SDKs (a number of which have been abandoned) as a tangent to its core business of selling advertisements. When the Android SDK 1.0 is finished later this year, developers will not only lack an installed base to sell their apps to, but will also have no high profile market for selling their apps in, and subsequently no financial incentive to develop applications that add value to the Android platform, just like Linux on the PC desktop. Around the same time, possibly within the next month, Apple will be shipping its second major OS release: iPhone 2.1. Apple will also be upgrading its entire user base to the new software so that developers will have a cohesive platform to target. This mirrors the efforts Apple has taken to upgrade its Mac OS X users to the same reference release. Mobile developers will be seeing money pouring in via iTunes while crickets chirp in the Android section of various mobile online stores. Apple’s iPhone Vs. Other Mobile Hardware Makers: 5 Revenue Engines Same Same, But Different: DOS Model Problems. Android developers will also have a series of other problems to manage. Like Windows Mobile, Android is intended to support everything, from BlackBerry-style keypad phones with a small touchscreen to the simple Windows Mobile Smartphone form factor lacking a touch screen to iPhone-like full size touch screens. Also like Windows Mobile, Android phone makers will have the option to leave off Bluetooth, WiFi, GPS location services, graphics hardware acceleration, and so on. Each Android phone will also have unique camera hardware, support for different video and audio codecs, and varied support for other differentiating proprietary services demanded by mobile operators. This will force developers to to make complex decisions regarding the lowest common denominator they choose to support. So while the iPhone will have a cohesive feature set, a managed software environment, and a functional market, Android will be a loose federation of hardware makers selling the same random features found on Windows Mobile today, with a chaotic development environment that lacks any central market for users or developers. And it will be run as an experiment by a company with no experience in consumer hardware or platform development. The Missing Tap. One specific example of the “DOS model problem” is that Android currently does not support multitouch. It's not touched on in the API, and Google quietly tap dances around its omission. Why no multitouch? Because multitouch screens are expensive, and most OHA hardware members are more interested in making a profit in a competitive phone market rather than impressing consumers as Apple did with the iPhone. Most existing smartphones, even those trying to directly rival the iPhone, use a stylus driven, pressure sensitive tap screen or a simpler, cheaper touch technology that lacks support for sensing multitouch. The iPhone's screen can actually sense up to five fingers at once, but the primary feature multitouch offers on the iPhone is the two fingered tapping and the pinching effects everyone associates with it. Android could certainly support multitouch if there were a demand for it, but that's the point: Google knows that its hardware partners are cheap and unlikely to put out hardware that actually competes with the iPhone. Instead of using expensive technologies that deliver clever yet largely invisible functionality, OHA members, just like PC makers, are far more likely to add flashy, impractical gadgety fluff that's cheap to tack on, such as slide out keyboards, neon tubes, and scratch and sniff stickers. That's how you impress gullible nerds on the cheap. Google itself is blowing smoke and erecting mirrors to distract from the reality that it being a “DOS vendor” means supporting bargain basement hardware from penny pinching duplicators. Android has been demonstrating some “wow” features such as a Street Maps app that pans around based on an internal compass in the demonstration phone. The problem is that that kind of thing only makes for a fun demo. Nobody needs to twirl around their phone in the air to see a view of the other side of the street, but everyone who has used an iPhone will wonder why they can't pinch to zoom out. Even worse, most Android phones aren't going to have a compass built into them, so Google is demonstrating features most Android users won't be able to use. That Sounds Like Microsoft… Google's design decisions are beginning to look a lot like Windows Vista; rather than actually working to make laptops boot faster, Microsoft came up with the idea of adding a small screen to the back of Vista laptops so users could check their email without having to wake the system up. But this was a stupid idea for a number of reasons, the most obvious being that most users just want a laptop that boots up quickly. Few laptops got the mini screen, but every user who tries Vista on their laptop will wonder why it doesn't boot up as fast as Mac OS X Leopard. In the same way, Google is advertising features for Android that most users won't ever see in their actual phones while ignoring things people will expect based on their exposure to the iPhone. Android is simply selecting the wrong features. Android will offer the advantages of supporting MMS, recording video, and the list of other features Windows Mobile already supplies. Those features didn't stop Apple from firing past Microsoft in the smartphone arena however, just as the Zune's highly touted WiFi and screen didn't phase iPod buyers. Incidentally, just months after the Zune, Apple had not only demonstrated a larger display but a higher definition multitouch screen, and not only WiFi, but functional WiFi that could be used to browse the web or check email. This suggests that Apple, with its faster release schedule, won't stay behind any of the leading features potentially offered by Android for very long. Android partners, however, will find it as difficult to catch up with Apple's unique features, just as Microsoft has been stymied to keep up with Mac OS X, the iPod, and the iPhone. The underlying reason: both Google and Microosft are tasked with maintaing support for a huge variety of hardware options demanded by all their partners. Apple has the unique circumstances to do only what it needs to do itself. Android in Windows Mobile's Shoes. Like Windows Mobile, Android faces a difficult market. In the US, it competes against the popular BlackBerry in corporate markets and the iPhone among consumers. Worldwide, it competes against entrenched market leader Nokia. The difference is that Google, unlike Microsoft, has no in. Windows Mobile was adopted by Windows-bound IT shops despite its weaknesses. Nobody has any preexisting reason to try an Android phone apart from hobbyists and open software enthusiasts, a demographic that has done little to move Linux on the PC desktop. Google also lacks Microsoft's installed base; it's starting from zero. The smartphone industry initially doubted Apple's chances of making much progress with the iPhone, despite the company having the Mac platform, the iPod, retail stores, platform development experience, marketing savvy, industrial design prowess, and so on. Google doesn't have any of those things. Mobile Providers vs Android. Apple also started with an exclusive partnership with AT&T, a three legged race that demanded effort from both. Google is hoping that hardware makers handle the hardware details and that mobile providers will be excited to sell its Android phones. While hardware makers such as HTC clearly appreciate having found a free alternative to Windows Mobile, it's not obvious why providers would be excited about Android, as it promises an openness that most mobile providers strongly oppose. AT&T took a big risk in getting behind the iPhone, as the phone encouraged users to use email rather than fee-based SMS and MMS, it supported WiFi for data access, and it bypassed AT&T's MEdia Net services to plug into iTunes instead. Verizon refused to parter with Apple and grant it those kinds of concessions. Is AT&T going to take a similar risk to partner with a phone that is not exclusive to it, and is Verizon now going to open its arms to support phones that do not exclusively support BREW, VCast and its other proprietary services? While Android may well eat into Microsoft's Windows Mobile business by stealing away its hardware makers, it seems unlikely that Android will ever serve as more than free alternative to Windows Mobile in a market where Windows Mobile is increasingly irrelevant. Android may have the dubious distinction of swallowing Microsoft's mobile business the same way Microsoft ate up the Palm OS, but even if it accomplishes that goal, Google will likely find itself unsustainably hungry immediately afterward. It will also find itself swimming in a shark tank of hungry rivals, including Nokia's Symbian, RIM's BlackBerry, and Apple's iPhone. Symbian is the final generic platform vying for the opportunity to play DOS in the smartphone market. The next article will examine Nokia's chances in its bid to match Microsoft's PC dominance in the mobile market while setting out in a new venture to copy Android's open software model. Did you like this article? Let me know. Comment here, in the Forum, or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast (oh wait, I have to fix that first). It's also cool to submit my articles to Digg, Reddit, or Slashdot where more people will see them. Consider making a small donation supporting this site. Thanks!
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Wall Street Breakfast: Must-Know News
MSFT, Yahoo reach search deal. At long last, sources say Microsoft (MSFT) and Yahoo (YHOO) have reached a search deal and will announce it within the next 24 hours. Yahoo will use Microsoft's Bing search-engine technology on its own sites, including the Bing brand, and will supply search text ads on its sites and some of Microsoft's. The deal appears to be structured as a revenue share with no upfront fee, with Yahoo taking 110% the first two years and 90% in the third. The deal is on a smaller scale than previously envisioned, but both Microsoft and Yahoo are hoping that a combined attack will be more effective against Google (GOOG). UPDATE: Microsoft, Yahoo officially announce the deal. Premarket: MSFT +0.8%, YHOO -5.8% (8:30 ET). Say-on-pay makes headway. A congressional committee approved a bill that would put new restrictions on executive pay, giving shareholders the right to cast non-binding annual votes on executive compensation and special pay packages, and enabling regulators to ban pay structures that incentivize inappropriate risk-taking. The House of Representatives is expected to vote on the measure on Friday. Santander plans bank IPO. Banco Santander (STD) will spin off its Brazilian unit in an initial public offering that could raise at least $3B, creating one of the biggest publicly listed banks in Latin America. The listing will likely occur in the next three months. Nasdaq backs flash trading ban. As the debate on flash trading heats up, Sen. Charles Schumer said the Nasdaq Stock Market supports a ban on the trading practice and only 'reluctantly' started offering flashes early last month. Meanwhile, the SEC was apparently investigating the practice even before Schumer's letter calling for action, and may move to ban flash trading 'within the next couple of weeks.' Sprint buys Virgin Mobile. Sprint (S) agreed to buy Virgin Mobile USA (VM) for $5.50/share ($483M) in an all-stock deal, and will retire $205M of Virgin's debt. Sprint already owns 13.1% of Virgin, which offers cheap prepaid wireless plans. Sprint is hoping the cheaper, non-contract service will help stem a tide of customer defections. IBM buys software maker. IBM (IBM) will buy SPSS for $1.2B, a 42% premium on SPSS' closing price on Monday. The deal, the latest in a series of IBM acquisitions, expands IBM's software portfolio and is a further sign of improvement in the technology sector deal market. The deal should be completed by year-end. NJ sues Merrill. New Jersey is suing Merrill Lynch, alleging the firm sold the state's investment division $300M in preferred stock based on misleading information. New Jersey officials said if the state's investment unit "had known Merrill's true financial condition, it would not have participated in the January 2008 offering and would not have agreed to a conversion in July 2008." GM returns to car loans. After a year-long hiatus, General Motors plans to get back into the car-leasing business and is said to be eyeing August 1 as its re-entry date. GM has said credit availability is still hurting auto sales, and that its exit from the leasing business forced many customers to defect to other automakers. Rivals including Ford (F) and Toyota (TM) have scaled back their leasing but haven't pulled out of the business entirely. Apple bars Google Voice app. Apple (AAPL) banned two iPhone applications based on Google Voice (GOOG) as the rivalry between the two tech giants grows. An Apple representative said some of the applications offered functions too close to what the iPhone already provides. American Air expects alliance approval. American Airlines (AMR) said it expects to win approval by October to form an alliance with British Airways (BAIRY.PK) and Iberia. The airline is betting on intra-alliance competition and global partnerships to help it survive. KKR preps Dollar General IPO. Kohlberg Kravis Roberts is reportedly in advanced preparations for an initial public offering of Dollar General and will also serve as one of the lead underwriters of the deal. It marks the first time KKR will underwrite one of its own IPOs as it tries to strengthen its reputation ahead of its own planned listing. SEC files fraud charges. The SEC filed suit against four individuals, accusing them of fraud in connection to over $197M raised from at least 900 investors nationwide which was funnelled to a commercial real estate venture. The SEC contends the defendants made "material misrepresentations to investors," including false claims about the use of the funds and the safety of investments. Home prices improve (.pdf). The S&P/Case-Shiller 20-City Home Price Index was -17.1% in May vs. last year, narrower than last month's 18.1% drop, and the fourth monthly improvement in a row as "the pace of descent in home price values appears to be slowing." The 0.5% month-on-month increase was the first uptick in three years. Consumer confidence. Conference Board's July Consumer Confidence came in at 46.6 vs 49.0 consensus, down from 49.3 in June. The decline was aggravated by a worsening job market, as the percentage of consumers claiming jobs are hard to get rose sharply. According to ABC's poll, consumer confidence registered at -47, up from last week's -50 and breaking the -50 threshold for the first time since mid-June. Twenty-six percent of Americans say it's a good time to buy things, up from 22% last week, while 44% rate their personal finances positively. Retail sales. Chain store sales fell 1.6% in the first three weeks of July, Redbook said, worse than the -0.9% expected. According to ICSC, weekly sales were up 1%, but July sales will be off around 5.5% Y/Y with "leaner clearance than last year hurting the reported sales pace." Earnings: Wednesday Before Open American Tower (AMT): Q2 EPS of $0.14 misses by $0.03. Revenue of $423M (+7.5%) vs. $414M. (PR) ArcelorMittal (MT): Q2 net loss of $792M ($0.57/share) vs. +$5.84B a year ago and vs. consensus of +$336M. Sales of $15.2B (-60%). Sees Q3 Ebitda of $1.4-1.8B. Says it achieved annualized fixed-cost cuts of $8.4B by the end of Q2. Shares -4.2% in Amsterdam. (Bloomberg) Arrow Electronics (ARW): Q2 EPS of $0.31 beats by $0.02. Revenue of $3.4B (-22%) in-line. (PR) Brookfield Properties (BPO): Q2 FFO of $0.38 beats by $0.03. Revenue of $619M (-13.5%) vs. $527M. (PR) Coca-Cola Enterprises (CCE): Q2 EPS of $0.67 beats by $0.16. Revenue of $5.9B (-0.4%) vs. $6B. Issues upside EPS guidance for FY '09 of $1.44-1.49 vs. $1.33 consensus. Shares +5.9% premarket (8:00 ET). (PR) EQT Corp. (EQT): Q2 EPS of $0.20 misses by $0.03. Revenue of $238M (-29%) vs. $236M. (PR) General Dynamics (GD): Q2 EPS of $1.61 beats by $0.04. Revenue of $8.1B (+11%) in-line. Shares +2% premarket (8:00 ET). (PR) Hecla Mining (HL): Q2 EPS of $0.00 beats by $0.02. Revenue of $75M (+10.5%) vs. $53M. Shares +2% premarket (8:20 ET). (PR) Hess (HES): Q2 EPS of $0.31 beats by $0.30. Revenue of $6.8B (-42%) vs. $7.4B. Shares +1.6% premarket (8:00 ET).(PR) Honda (HMC): FQ1 net profit fell 96% to 7.56B ($79.9M), vs. consensus of -56.4B, and vs. a FQ4 net loss of 186.1B. Sees full-year earnings of 55B, down 60% from last year, but 38% higher than its previous outlook of 40B. Revenue of 2T (-30%). (WSJ) Hospira (HSP): Q2 EPS of $0.73 beats by $0.13. Revenue of $957M (+6.1%) vs. $878M. (PR) IAC/InterActiveCorp (IACI): Q2 EPS of $0.02 misses by $0.07. Revenue of $340M (-4%) vs. $335M. Shares +0.5% premarket (8:10 ET). (PR) Jones Apparel Group (JNY): Q2 EPS of $0.29 beats by $0.22. Revenue of $804M (-3%) vs. $777M. Shares +9.5% premarket (8:10 ET). (PR) MeadWestvaco (MWV): Q2 EPS of $0.22 vs. consensus of $0.01 (may not be comparable). Revenue of $1.4B (-16%) vs. $1.5B. (PR) Medco Health Solutions (MHS): Q2 EPS of $0.69 beats by $0.04. Revenue of $14.9B (+17%) vs. $14.5B. (PR) Moody's (MCO): Q2 EPS of $0.43 beats by $0.03. Revenue of $451M (-7.6%) vs. $427M. (PR) New York Community Bancorp (NYB): Q2 EPS of $0.16 vs. consensus of $0.25 (may not be comparable). Non-performing assets of $341.6M at the end of June, representing 1.04% of total assets, vs. $176.8M, or 0.55% of total assets, at the end of March. (PR) Nissan (NSANY): FQ1 net loss of 16.5B vs. a net profit of 52.8B a year ago, and vs. consensus of -108.5B. Last quarter Nissan posted a 276.9B loss. Sales of 1.51T (-36%). Still sees full-year loss of 170B. Sources say Nissan will announce today a new China plant capable of producing 240,000 vehicles/year. (WSJ) Penske Automotive Group (PAG): Q2 EPS of $0.22 beats by $0.07. Revenue of $2.3B (-30%) vs. $2.4B. (PR) Praxair (PX): Q2 EPS of $0.96 misses by $0.03. Revenue of $2.3B (-26%) vs. $2.1B. (PR) Qwest Communications International (Q): Q2 EPS of $0.13 beats by $0.03. Revenue of $3.1B (-9%) in-line. (PR) SAP AG (SAP): Q2 net profit of €423M vs. €408M a year ago and consensus of €385M. Revenue of €2.58B (-10%) vs. €2.64B. Software revenue of €543M (-40%) vs. consensus of €556M. Operating margin 27.7%. Sees full-year operating margin of 25.5-27%, up from previous guidance of 24.5-25.5%. Shares +1.8% in Frankfurt. (DJ) Sealed Air (SEE): Q2 EPS of $0.34 in-line. Revenue of $1B (-20%) vs. $1.1B. (PR) Scotts Miracle-Gro Company (SMG): FQ3 EPS of $2.32 beats by $0.07. Revenue of $1.3B (+9%) in-line. (PR) Sprint Nextel (S): Q2 EPS of -$0.13 misses by $0.11. Revenue of $8.1B (-10%) in-line. (PR) Wyndham (WYN): Q2 EPS of $0.41 beats by $0.04. Revenue of $920M (-19%) vs. $917M. Issues downside Q3 EPS guidance of $0.53-0.57 vs. $0.58 consensus. Issues in-line guidance for FY '09, sees FY '09 revenue of $3.5-3.9B vs. $3.6B consensus. Earnings: Tuesday After Close American Financial Group (AFG): Q2 EPS of $1.09 beats by $0.16. Revenue of $1.1B (+8%) vs. $815M. (PR) Brandywine Realty Trust (BDN): Q2 FFO of $0.56 beats by $0.10. Revenue of $146M (-3%) in-line. Raises full-year FFO to $1.75-1.80 from $1.60-$1.74, vs. $1.71. (PR) Carter's (CRI): Q2 EPS of $0.23 beats by $0.17. Revenue of $318M (+5%) vs. $300M. Sees Q3 EPS growth in mid to high single digits. (PR) Chicago Bridge & Iron (CBI): Q2 EPS of $0.45 beats by $0.05. Revenue of $1.2B (-14%) in-line. (PR) Dreamworks Animation SKG (DWA): Q2 EPS of $0.30 beats by $0.14. Revenue of $132M (-7%) vs. $117M. (PR) Fidelity National Information Services (FIS): Q2 EPS of $0.42 beats by $0.06. Revenue of $835M (-4%) vs. $832M. Raises full-year EPS view to $1.71-1.75 vs. $1.62. (PR) FMC Technologies (FTI): Q2 EPS of $0.84 beats by $0.23. Revenue of $1.1B (-6%) in-line. Sees full-year EPS of $2.55-2.65 vs. $2.36. (PR) Hertz Global Holdings (HTZ): Q2 EPS of $0.12 beats by $0.06. Revenue of $1.8B (-23%) in-line. (PR) Integrated Device Technology (IDTI): FQ1 EPS of $0.02 beats by $0.02. Revenue of $116M (-38%) vs. $113M. (PR) Life Technologies (LIFE): Q2 EPS of $0.79 beats by $0.13. Revenue of $833M (+126%) vs. $803M. Sees full-year EPS of $2.70-2.80 vs. $2.63. (PR) Massey Energy Company (MEE): Q2 EPS of $0.24 beats by $0.08. Revenue of $698M (-16%) vs. $661M. (PR) McKesson (MCK): FQ1 EPS of $1.06 beats by $0.20. Revenue of $27B (flat) in-line. (PR) Nalco Company (NLC): Q2 EPS of $0.11 misses by $0.13. Revenue of $913M (-14%) vs. $950M. (PR) Norfolk Southern (NSC): Q2 EPS of $0.66 beats by $0.02. Revenue of $1.9B (-33%) vs. $2.1B. (PR) Panera Bread Company (PNRA): Q2 EPS of $0.65 beats by $0.01. Revenue of $331M (+3%) in-line. Company targets 15-20 new unit openings in Q3. (PR) Parametric Technology (PMTC): FQ3 EPS of $0.03 misses by $0.13. Revenue of $226M (-17%) vs. $223M. Sees Q4 EPS of $0.25-0.30 vs. $0.31. (PR) Psychiatric Solutions (PSYS): Q2 EPS of $0.63 beats by $0.07. Revenue of $471M (+6%) vs. $469M. Reaffirms full-year EPS of $2.24-$2.32 vs. $2.23. (PR) Questar (STR): Q2 EPS of $0.54 in-line. Revenue of $613M (-26%) vs. $525M. (PR) SBA Communications (SBAC): Q2 EPS of $0.25 beats by $0.42. Revenue of $136M (+22%) vs. $137M. (PR) STMicroelectronics (STM): Q2 EPS of -$0.36 misses by $0.04. Revenue of $2B (-16%) vs. $1.8B. Sees Q3 revenue of $2.07B-2.27B vs. $2.02B. (PR) Superior Energy Services (SPN): Q2 EPS of $0.35 misses by $0.09. Revenue of $361M (-21%) vs. $392M. (PR) TECO Energy (TE): Q2 EPS of $0.29 beats by $0.04. Revenue of $825M (-7%) vs. $864M. (PR) THQ (THQI): FQ1 EPS of $0.10 beats by $0.18. Revenue of $244M (+77%) vs. $203M. Sees Q2 revenue of $85M-95M vs. $123M. (PR) Total System Services (TSS): Q2 EPS of $0.27 in-line. Revenue of $415M (-4%) vs. $401M. Sees full-year decline in revenues of 3-5% and in net income of 11-13%. (PR) Trimble Navigation (TRMB): Q2 EPS of $0.31 misses by $0.01. Revenue of $290M (-23%) vs. $300M. Sees Q3 EPS of $0.25 vs. $0.27. (PR) Western Digital (WDC): FQ4 EPS of $0.76 beats by $0.48. Revenue of $1.9B (-5%) vs. $1.6B. (PR) XL Capital (XL): Q2 EPS of $0.96 beats by $0.34. Revenue of $1.73B (-19%) vs. $1.71B. (PR) Today's MarketsAsian markets were broadly down, but Europe is off to a strong start. U.S. futures have dipped into negative territory.
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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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Why Dan Frommer and Scott Moritz Are Wrong on iPhone Sales
Daniel Eran DilgerSilicon Alley Insider's Dan Frommer says Apple's announcement of reaching its million mark goal in iPhone sales three weeks early is actually bad news for Apple and is convolutedly "below plan." He also says the announcement only props up the speculative conjecture by Scott Moritz of the Street that Apple's iPhones sales are somehow woefully below expectations. They're wrong, here's why.The PremiseFrommer wrote that Apple isn't selling iPhones as fast as planned and is set to only sell around half of its 2008 goal.His premise revolves around the idea that if Apple were selling iPhones at "a constant rate," a million phones in 74 days would be five million per year. However, because it sold over a quarter of those in the opening day and a half at the end of June, Frommer calculates that sales of the remainder in the 72 days since the first of July mean that Apple is only hitting a "3.6 million annual run rate."By the end of 2008, that would only result in 5.8 million units instead of the ten million goal Apple. [Silicon Alley Insider: Apple's iPhone: 1 Million Is Below Plan]Strike One: The Run Rate Myth.The most obvious problem with that idea is the fact that devices don't sell at a constant “run rate." Apple's iPhone sales took off at launch much faster than the original iPod due to the fact that a swell of early adopters were ready to buy it after being convinced over six months of anticipation. At the same time, many potential buyers held off on plans to buy the iPhone until they could read reviews and get a real sense of how it worked. Many were also locked into contracts with Verizon or Sprint. With only six months of advanced notice, it will still be a few more months before the majority of buyers who want an iPhone even get the chance to buy one without having to pay outrageous fees to cancel their existing mobile contract. iPhone sales are also now taking on the network effect of the iPod, as early adopters show their friends. All these factors have difficult to estimate impacts upon sales that make trying to figure a static “run rate? a very simplistic and pointless exercise.However, there is another factor that simply blows the entire idea of a static “run rate? out of the water. Last November, I predicted that sales of the Zune would bomb that winter because Microsoft had failed to critically examine Apple's historical sales patterns. Sure enough, the Zune was thrown against the rocks by Apple's riptide. Frommer's idea ignores that same reality by imagining that iPhone sales will schlep along at a linear pace. Had Frommer tried to calculate an "annual run rate" for the iPod based on a portion of third quarter sales at any point over the last half decade, he would never have been close to accurate. That’s because Apple’s iPod sales roughly triple every winter quarter.In 2002, it sold nearly as many iPods in its winter quarter as it did the first three quarters combined: 219,000In 2003, it actually sold more iPods in its winter quarter than in the first three combined: 733,000In 2004, it again sold more iPods in its winter quarter than in the first three: 4,580,000In 2005, it sold more than 4 million units every quarter, but still sold nearly three times as many in the winter: 14,480,000.In 2006, it sold more than 8 million units every quarter, and then sold over 21 million in the winter quarter.In 2007, it has maintained quarterly sales between 10.5 and 9.8 million per quarter.[Strike 3: Why Zune will Bomb this Winter]Strike Two: The Have it Both Ways Myth.One particularly annoying bit of analysts' talk about Apple's expectations is that they can't seem to decide if Apple's projections are bad because they are conservative lowballs, or if they are bad for being overly enthusiastic figures the company won't be able to reach. They often try to describe them as both, loading contempt on both sides of the scale. This makes them look very foolish. Do they think we have no memory, or are they just changing their stories back and forth in sheer desperation?Frommer tried to argue both sides at once in the same article. Recall that Apple only ever gave two iPhone sales goals: one million by the end of the first quarter of sales, and ten million by the end of 2008. In his piece, Frommer suggests Apple will only be able to sell 5.8 million iPhones by the end of 2008, based on that fallacious "run rate." That would be just over half of Apple's ten million goal. However, he then says that Apple's immediate short term goal was an unimpressive low ball, no doubt because Apple reached it three weeks early.Apple's stated goals must be a greatly frustrating logical conundrum for Frommer, because even at a “run rate" of one million in a quarter, Apple could only ever hope to sell six million iPhones by the end of 2008, another five quarters later. No wonder he's faced with trying to say that the immediate goal was too low and the longer term one is too high! Frommer needs to stop trying to pound round facts into square holes just so they can be stacked up like bricks the way he would like them to be.Strike Three: The Market Bearing Price Myth.While Frommer and Moritz are enamored with the idea that iPhone prices could only be cut if sales were in crisis, a variety of obvious market realities don't support that simpleton idea. Between now and the end of 2008, Apple has just two holiday seasons. If it wants to dramatically exploit its historical potential for selling roughly three times as many gadgets during the winter season, it makes sense to trade off unit pricing for volume sales, even if it could perhaps sell fewer at a higher price and make more short term profits doing so.Such a strategy isn't unique. Microsoft and Sony currently lose money on their new game consoles in desperate bids to establish their gaming and HD video playing platforms. Even so, this year they both cut prices again to accelerate volume demand. Nintendo purposely aimed low to capture volume sales using a more attractive price point. Given high demand for the Wii and extremely constrained availability, Nintendo "should" seemingly raise its console price and profiteer. It hasn't. While prices are clearly linked to demand, it is a common fallacy to think that the "right price" is always the highest the market will bear. Jobs' 99 cent pricing in the iTunes store is clearly not the top price consumers will pay for downloads. Music labels are fuming that other licensees such as Verizon will collect $2.50 or more for portions of a song sold as a ringtone. Jobs wants media prices low to induce volume sales and attract buyers to the legitimate market for music and movie downloads. Labels and studios want "market pricing," in part so they can jack up the price of popular music to exploit consumers, and in part so they can exploit artists by threatening to release their work at lower tiered prices and signal to the market that their careers are over.[Universal vs Apple in the iTunes Store Contracts][Nintendo Wii vs Microsoft Xbox 360 and Sony PS3]This All Happened Before.Dial back the clock twenty years, and you'll discover that Steve Jobs also fought with Apple CEO John Sculley over the price of the original Macintosh. The desire to use an expensive but pioneering amount of RAM and a futuristic new processor had inflated the price of the Mac, but the design team was still able to deliver it at a fairly attractive price point of $1,995. Scully determined that the Mac would still sell at $2495, delivering high profits to fund splashy advertising. Nothing on the market was really similar to the Mac apart from Apple's $9,995 Lisa. VisiOn for the PC similarly cost nearly $10,000 and did far less. Sculley thought that the market would bear anything Apple might charge. Andy Hertzfeld recalled on Folklore.org that in October 1983, "Steve Jobs strode into the software area one evening, looking angry. 'You're not going to like this,' he told us, 'but Sculley is insisting that we charge $2495 for the Mac instead of $1995, and use the extra money for a bigger marketing budget. He figures that the early adopters will buy it no matter what the price. He also wants more of a cushion to protect Apple II sales. But don't worry, I'm not going to let him get away with it!'"Jobs fought Sculley over the price increase, but Sculley prevailed. Sure enough, Macs did sell well out of the gate to early adopters at the higher price, but sales then began to stall. While Jobs couldn't cut the price for the original Mac to induce wider adoption in the mid 80s, he could choose to cut the price of the iPhone early and use interest in the iPod Touch to ramp users toward the iPhone. That price cut will dramatically boost sales this winter, just as iPod price cuts and feature refreshes do every year.Apple will earn less profit on individual hardware sales of the iPhone, and may even earn slightly less money overall this quarter than it might have selling the iPhone at $599. However, a $399 iPhone will dramatically boost the company's sustainable subscriber revenues and devastatingly cut into stationary rivals like Palm and the Windows Mobile licensees, giving them little opportunity retool and strike back with copycat products. [Price Fight - Folklore.org][Office Wars 3 - How Microsoft Got Its Office Monopoly]Strike Four: The Myth of Unlimited Availability.Another problem with idea that iPhone sales were in crisis--and that a price cut is a conspiracy to hide the truth--is that Apple sold out of iPhones in many of its retail stores throughout the first three weeks on sale.Carl Howe of Blackfriar's Communications tracked iPhone availability every day through July, and then animated the results in a movie that depicts just how constrained iPhone inventories in Apple's retail stores were. So not only did Apple meet its 94 day goal 20 days early, but it did so despite having no or few iPhones to sell in many of its stores during the first 21 days. Price isn't just related to demand, but also to supply.That also demonstrates the fallacy of Scott Moritz' assertion that Apple secretly planned to sell a million iPhones in a day and a half, and was sorely disappointed after failing to do so. How could Apple have planned on selling a million units in one day when it didn't even have a million units on the shelves of its stores during the first month? Remember, Moritz wasn't saying Apple had a delivery problem in getting enough units to stores as Nintendo is experiencing with its constrained supplies of the Wii. Instead, he tried to suggest that interest in the iPhone was far below Apple's estimates, and buyers were leaving it on the shelf like Windows Vista. The result, he claimed, was that "rivals were rejoicing."The only real rejoicing by rivals was that Moritz was volunteering to repeat the talking points handed to him by Verizon shill Roger Entner of IAG Research. Just hours before Apple announced it had sold a million units, Moritz tried to get some traction out of the idea that Apple had dropped the price in desperation to find another half million or so customers over the next three weeks. Apple isn't the typical tech company being run by visionless bean counters. It it were, it would have continued selling $600 iPhones at least through the end of September and then announced that it had sold its million. Apple had to push out new iPods in early September and fit the iPhone into the price range because next month it will be rolling out Leopard and a series of new software updates. Apple feeds the press in small, consistent, and regular feedings so reporters know what to write. If Apple were a big stupid company such as, say HP, it would parade out a mix of dozens of consumer and business products all together in one big event, and nobody would ever hear about any of it. HP did.[Why a million iPhones in 74 days is better than you think- Blackfriars][HP's marketing this week: fashionable but ineffective - Blackfriars][Unraveling Anti-Apple Panic: the iPhone Launch Success] [More on Scott Moritz and the Jim Cramer Misinformation Engine]Strike Five: It's Too Late to Deny the iPhone.The most comical part of Frommers’ analysis is that he’s trying to stuff a cat back into a bag and explain that there was never really any cat, long after everyone in the room heard the purr and pet the thing. Sorry, but the windows of opportunity to doubt the iPhone have long since closed.Real Windows Enthusiasts were aware of the need to deny the iPhone well before its release. They all chimed in with reasons why the iPhone wouldn't work, wouldn't offer what consumers want, and wouldn't sell well, all hoping that their non-stop misinformation campaigns would act as a self-fulfilling prophesy. They failed miserably.John Dvorak began his smear campaign immediately, appearing on CNBC to say that the iPhone was "trending against what people are really liking in phones nowadays, which are those little keypads.? He explained, “The BlackJack, the Samsung, the BlackBerry obviously pushes this kind of thing. The Palm, all of these. I guess some of these stocks went down on the Apple announcement, thinking that Apple could do no wrong. But I think Apple can do wrong, and I think this is it." Reader Jim Barrow sent in a link to a MarketWatch article from March, where Dvorak scribed a rambling diatribe entitled "Apple should pull the plug on the iPhone." He offered no factual basis for worrying that the iPhone might not work out apart from the offhanded comment that "there is no likelihood that Apple can be successful in a business this competitive," words which echoed Dvorak's 1984 observation that "the Macintosh uses an experimental pointing device called a 'mouse.' There is no evidence that people want to use these things."In April, Dvorak inflamed his 'pull the plug' rhetoric further in a TWiT podcast, where he reported to an audience of hundreds of thousands that the iPhone only delivered "40 minutes of talk time" and "the interface fouls up constantly.? Dvorak said that his inside information on the iPhone came from a "guy at Cingular who’s testing the product," adding, "he’s telling me confidentially and I shouldn’t be telling anybody."[John Dvorak: How Wrong Can One Guy Be?][Readers Write: Don't Write About John Dvorak Anymore]It'll Be the Death of You.Dvorak was joined by Rob Enderle, who called the iPhone “damned? and “not a very good phone? at every opportunity in the months before its launch, despite not really knowing anything about it, or even ever offering any rational criticism. Instead, Enderle appealed to fantasy fears of sexual assault, murder, and the violent death of children, all of which he suggested might somehow be related to the iPhone. Unaware that a password protected iPhone--or even a unauthorized unit without a configured service plan--can still be used to make emergency phone calls, Enderle wrote about, "an emergency situation where, say, a woman was being raped and couldn’t call for help because she didn’t remember her iPhone password." As I understand, with a Windows Mobile phone, even if the unit crashed while trying to place the call, at least the victim could use it like a brick as a blunt weapon. Enderle also feared that being unable to take out the battery would somehow making recharging it impossible, resulting an a scenario where one might end up on “the wrong side of town? with a dead iPhone and be murdered because of it. Being on the wrong side of town was apparently the source of most murders prior to the arrival of the cell phone, which somehow made it safe to be in bad neighborhoods. For those who unfazed by the prospect of one's own own grizzly death in relation to the iPhone, Enderle appealed to his readers to please think of the children, particularly the potential for their brutal decapitation in an iPhone-related collision. "If you are buying this phone for a child or another member of your family," Enderle warned, "please emphasize that entering data on this phone while driving is dangerous." In contrast, operating the slide out keyboards of an HTC brick phone, or using both hands to thumb type on a BlackBerry may or may not save your children as they drive off an embankment, but at least you'll know they didn't die at the hands of Apple's "damned" iPhone.[SCO, Linux, and Microsoft in the History of OS: 1970s][Mac OS X vs Linux: Third Party Software and Security]Pure Concentrated Evil with a Multitouch Screen.Brian Lam of Gizmodo published an impassioned plea to boycott the iPhone shortly before its launch, due to the fact that Cingular had purchased the AT&T name, a brand Gizmodo's writer correlated with "monopoly tactics" in the late 70s. Gizmodo hasn't ever called for the boycotting of Verizon Wireless, which is well known for its anti-consumer tactics and which shares just as much blood with the old AT&T as its Baby Bell sibling Cingular, nor has it ever urged the boycott Microsoft products due to "monopoly tactics." Gizmodo also failed to boycott any other GSM phones that are tied to AT&T.Gizmodo's Lam and Enderle then teamed up with Slate's David Sessions in an article purporting to expose Apple's rated battery life for the iPhone. Sessions complained about the attention the iPhone was getting, and tried to dismiss Apple's announcement of a two fold increase in battery life over what was originally advertised. Unbelievably, Sessions and friends could only explain away the iPhone's jump in talk time by crediting its glass screen, saying that "glass transmits light more efficiently than plastic." That and some witchcraft.However, all of these individuals sharply reduced their squirt rate of false information after the iPhone's successful launch. In day and a half, Apple sold 270,000 iPhones compared to the 500,000 Palm OS Treos, 1.03 million RIM BlackBerrys, and 1.51 million Windows Mobile phones that were sold worldwide in the first 90 days of 2007.Apple has since nearly matched highflying RIM in sales during July, despite being limited to a single carrier and only offered for sale in the US. At this point, denying the iPhone is like saying the Earth is flat. It might be fun to do at a Renaissance Faire, but pretending to seriously doubt reality is not a good career move unless you work for the Street--or perhaps Rupert Murdoch, as Dvorak does.[Secret iPhone Details Lost in a Sea of Hype and Hate][iPhone Sales vs Zune, Palm, RIM, Symbian, Windows Mobile]And Now: a Warning.Let it be known that anyone who publishes further misinformation or blows out similar inanity will risk being instantly awarded a Zoon on the spot. No complicated voting, no tedious application process. New Zoon nominees will be rubber stamped with the same effortless fast tracking as the ECMA declaring Microsoft technology as an international standard.In fact, I’m going to totally Zoon Dan Frommer and Scott Moritz right now, as well as John Dvorak, Rob Enderle, Brian Lam, David Sessions, and even Roger Entner. And John Sculley. And while I’m handing out an intellectual property construct that costs me nothing to distribute, I will also award Steve Jobs with a Zoon for the whole two month “just kidding? iPhone pricing situation, although I might take half of it back if I get a $100 coupon that doesn’t force me to spend $500 to actually use it. So let that be a warning to you out there on the Tubes thinking about how to linkbait an article at the expense of the progress of technology. I have a rapid firing gun full of Zoons and I’m not shy about cranking them out. Be sure to post any nominees.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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Office Wars 3 - How Microsoft Got Its Office Monopoly
Daniel Eran DilgerOffice Wars 1 - Claris and the Origins of Apple’s iWork Office Wars 2 - Microsoft’s Outrageous Office ProfitsOffice Wars 3 - How Microsoft Got Its Office MonopolyMicrosoft’s Office monopoly gives the company more revenues and delivers nearly as much profit as its Windows software. How did it gain such a powerful position in productivity applications? The history of Office is rooted in decisions Apple made in the 80s with the Lisa and Macintosh, and also has an interesting correlation to Apple’s iPhone strategy today.The Origins of Office.While Microsoft has overwhelming power in desktop productivity applications today, it entered the market late. In the early 80s, Microsoft principally sold language software and struggled to license copies of AT&T’s Unix under the name Xenix. In 1981, Microsoft teamed up with IBM to license a copycat version of CP/M as the DOS for IBM’s new PC. Microsoft didn’t really get started in applications until Steve Jobs approached the company that same year with a proposal to develop for Apple’s new Macintosh.Entrusted with prototype Mac hardware and inside access to Apple’s development tools, Microsoft made an agreement with Apple in 1981 not to ship any mouse-based products of its own until a year after Apple introduced the Mac. In exchange, Apple promised to give Microsoft a rare opportunity to enter the competitive desktop applications market using its entirely new Mac platform as a launching pad.[SCO, Linux, and Microsoft in the History of OS: 1970s][SCO, Linux, and Microsoft in the History of OS: 1980s]Software Sells Systems!Prior to the Mac, Apple had released the Lisa as its first graphical desktop computer. Since developing new graphical apps for the Lisa was very different and required special training, Apple delivered its own complete productivity suite for the Lisa. It planned to open up the Lisa platform to third party development at some point after the initial launch, but the immediate focus had been to deliver a unique set of applications to demonstrate the power of Lisa’s new graphical interface.Recalling the software focus of the Lisa development team, reader Jim Hoyt emailed me several months ago in response to “Why Apple Bounced Back,? an article crediting Apple’s recent internal software development efforts with a large role in the company’s turnaround over the last decade. Hoyt wrote, “In 1979, John Couch, the soon-to-be head of the Lisa project, was in charge of all software at Apple Computer. He commissioned this poster: Software Sells Systems.? I’ve been meaning to publish the otherwise long since lost to history poster, so here it is, belatedly. Thanks Jim![Why Apple Bounced Back]Apple Delivers Lisa Suite Seven Years Ahead of Microsoft Office.The poster’s premise was obvious: the Lisa wasn’t going to sell itself; it needed practical software applications to usher in the future of the graphical desktop. Apple developed an entire suite of seven productivity applications that shipped with the Lisa system in 1983, including word processing, spreadsheet, database, drawing, graphing, project management, and terminal emulation programs. It was seven years later before Microsoft would first package its Word, Excel, and PowerPoint applications together as Office 1.0 in 1990. In his February 1983 review of the Lisa for Byte magazine, Gregg Williams concluded: “As you can tell, I am very impressed with the Lisa. I also admire Apple for deciding to make the system without being unduly influenced by cost or marketing constraints. The Lisa couldn’t have been developed without such a deep commitment, and no other company I can think of could afford such a project or would be interested in doing it this way (the Lisa project reportedly cost over $50 million and used more than 200 person-years of effort!). In terms of the actual, as opposed to symbolic, effect it will have on both the microcomputer and the larger-computer market, the Lisa system is the most important development in computers in the last five years, easily outplacing IBM’s introduction of the Personal Computer in August, 1981.?A year later, Lisa ended up being replaced by the much less expensive Macintosh, which delivered much of the Lisa’s functionality at a quarter of the price. However, the Mac did not include the Lisa’s expensive megabyte of RAM, its hard drive, or its productivity application suite. The Mac only shipped with a word processor and painting tools.Why Apple didn’t port its Lisa applications to the Macintosh is a confounding riddle, because it had more than a half decade of opportunity to do so. The main reason for this was a paranoid fear of alienating outside developers, along with jitters related to IBM’s rapid poaching of the desktop computing world after the arrival of its PC in 1981.[“The Lisa Computer System? Reprinted from Byte, issue 2/1983] [The Lisa, Apple's First GUI-Based Computer System - VAW][How Apple Keyboards Lost a Logo and Windows PCs Gained One]Apple’s Lisa vs the Third Party Mac Platform: 1980 - 1984.Competition inside Apple between the Lisa development group and the Macintosh team led to a different software strategy for the Mac. Since the smaller Mac group didn’t have the resources to develop a full suite of applications in advance of its launch, it planned to leverage third party development in the same way as the Apple II had.Sales of Apple II computers had exploded in 1979 with the release of Dan Bricklin’s VisiCalc spreadsheet software. That success was a large reason why IBM decided to get involved in the microcomputer business with the PC in the first place. It wasn’t until 1984 that Apple began making lots of money selling AppleWorks, its word processing, spreadsheet, and database package for the Apple II. It continued to sell the software with only limited updates well into the early 90s.Apple management failed to see the potential for delivering its own suite of Mac applications as it had on the Lisa, and as it very profitably would later do for the Apple II. Instead, it became increasingly enamored with the idea of partnering with third party software developers and delegating away the work--and the profits--of creating its own Mac software. Motivated by fears of inhibiting a third party software industry like the one that had grown up around the IBM PC, Apple intentionally stifled its own internal software development efforts and later spun them off into the Siberian gulag of Claris. That move would prove to be a devastatingly expensive mistake that would nearly destroy Apple over the next decade.Incidentally, three of the most important products Apple would release during that decade of decline were software products: the profitable AppleWorks for the Apple II in 1984.the free 1987 HyperCard for the Mac.the free 1991 QuickTime for the Mac.[HyperCard: Apple and the Origins of the Web][1990-1995: Planting Software Seeds][QuickTime: The Secret Weapon Inside iTunes]A Fearsome Future VisiOn for the PC: 1981 - 1983.Another contributing reason for Apple’s rush to embrace third party developers on the Macintosh may have been related to the fear of VisiCorp’s new mouse-driven VisiOn graphical desktop environment. VisiOn originally appeared on the Apple III in November of 1981, but the complete commercial failure of that new machine after the delivery of IBM’s PC prompted VisiCorp to announce moving its support to the PC in 1982, with a promised release target of mid-1983. Apple was still scrambling to release the Lisa and the Mac, both of which had slipped repeatedly.While clumsy, slow, and expensive--the base VisiOn software and a mouse cost $790, each application cost between $250 and $400, and it required a $5000 hard drive upgrade on top of a $2000 PC--VisiOn was backed by the legendary VisiCorp, the company that had helped launch the Apple II to fame with VisiCalc. VisiOn also tapped into IBM’s “up is down? PC, which despite its high price and low level of performance and innovation, had cut deeply into Apple’s business expansion plans, almost entirely due to IBM’s reputation and its monopoly position in business computing. After witnessing its first big failure with the Apple III, and then seeing a tepid response to the $9,995 Lisa in 1983, Apple was no doubt very concerned about IBM’s PC being converted into an ugly frankenstein Mac knockoff with that $7,500 VisiOn upgrade bolted on, cheered on by a press giddy at the prospect of being bamboozled by IBM’s overpriced and under delivering PC.The only way to compete with the threat of such a graphical system for the PC would be to deliver the new Macintosh as quickly as possible at a much lower cost with lots of applications from a variety of third party developers. Fortunately for Apple, VisiOn also slipped several months and wasn't delivered until the end of 1983. Right up until it completely fizzled, the press hailed VisiOn as a promising competitor to Apple’s Lisa and the forthcoming Macintosh.By 1983, VisiCorp had fallen apart; its star development manager Mitch Kapor had left to found Lotus Development. Kapor’s new spreadsheet product, Lotus 1-2-3 for the DOS PC, destroyed the remains of VisiCorp and its VisiOn.[VisiCorp Visi On - Toasty Tech][1980-1985: 8-bit Platforms]Frying Pan to the Fire: Apple Runs to the Arms of Microsoft: 1981.Finding developers willing to commit to investing in Apple’s next new platform was difficult after the failure of the Apple III and the wildly successful launch of the PC. Apple later found that its developer relations would suffer at the release of the “no other software needed? Lisa. For the Mac, Apple decided to copy the PC model by directing the majority of its efforts into courting third party developers and downplaying its own software releases, which were only intended to serve as basic placeholders. Even so, many PC developers planned to take a ‘wait and see’ approach to supporting the Macintosh.Hoping to prime an early and explosive business success for the Macintosh in the same way VisiCalc had launched sales of the Apple II, Steve Jobs made plans with Microsoft to deliver a graphical Mac interface for its struggling Multiplan--a VisiCalc spreadsheet clone--and a new Chart application.Microsoft had also secretly begun another Mac app initially called MultiTool Word, based on the Bravo word processor developed by Xerox PARC’s Charles Simonyi and Richard Brodie; Microsoft hired both in 1981. The company didn’t tell Apple about its new word processor project because the Mac team had already started developing a word processor for the Mac called MacWrite.[A Rich Neighbor Named Xerox - Folklore.org][An Office User Interface Blog - Microsoft’s Jensen Harris]Apple’s Problematic Partnership with Microsoft: 1981 - 1985Next to IBM, Apple was among the first companies to realize that getting into a business partnership with Microsoft was a really bad idea. Throughout 1983, Microsoft employees began intense discussions with Apple about how the Mac system software worked internally, involving issues unrelated to desktop application development. The reasons for this became obvious when Microsoft made a surprise pre-announcement at the Comdex trade show in November 1983 of a clone of Apple’s Mac environment for the PC called Windows, along with the release of a text-based Word for DOS using a mouse. Apple had previously worried about VisiCalc’s independent VisiOn appearing for the PC, but now its own partner had taken its internally developed graphical desktop work to deliver a competing product on IBM’s platform. Microsoft had discovered a loophole that allowed it to ignore its exclusive agreement with Apple because the contract had tied the year-long waiting period to the Mac’s planned ship date in 1982; that contract date wasn’t updated as the project slipped into 1984.It turned out that Word for DOS wasn’t very popular, since DOS PC users didn’t see much benefit from only using a mouse with a single application. It also turned out that Microsoft couldn’t deliver on its promise to ship Windows 1.0 by early 1984; it wasn’t actually available until 1985, and even then was a complete joke of a product and fully unusable. However, the problems Apple would suffer for trusting Microsoft were only just getting started. Windows 1.0 wasn’t much to look at, but it did offer an advancement beyond the neanderthal text interface of Word for DOS. Apple also had reason to worry when it found Microsoft was directly collaborating with IBM in 1985 to deliver a new DOS replacement called OS/2. [1990-1995: The Race to Deliver The Next New Platform][Mac Office, $150 Million, and the Story Nobody Covered]Apple Grows Dependent upon Third Party Software: 1985 - 1990.Apple’s partnership with Microsoft continued to worsen. Microsoft finally shipped its spreadsheet for the Mac in 1985, but threatened to also release it for the PC as well, prompting Apple CEO John Sculley to sign away rights to a variety of Mac system software details to Microsoft in 1985 in exchange for exclusive Mac development of the graphical Multiplan for two years. Microsoft’s Multiplan and Chart applications for the Macintosh were among the strongest software features Apple touted in its 1984 advertising. (Click to view full size).A very young Bill Gates appeared next to Mitch Kapor of Lotus Development in Apple’s Mac ads to observe, “To create a new standard takes somethings that’s not just a little bit different. It takes something that captures people's imaginations. Macintosh meets that standard.? Were he not trying to sell Windows Mobile today, he might say the same of the iPhone!Sculley had been arrogantly dismissive of Bill Gates’ July 1985 suggestion that Apple work quickly to broadly license its Mac technology to Northern Telecom, Motorola, and AT&T. Instead, Apple sought to retain control of the unique Mac desktop as a way to sell its hardware.At the same time, Apple grew increasingly reliant upon Microsoft to deliver updates to its applications for the Mac, and worried about threatening any of its third party Mac developers with its own internal application software efforts.However, in 1984 Apple had released AppleWorks for the Apple II. That program rapidly became the top selling software title of any computer platform, despite Apple’s minimal efforts to market it. It was nearly an embarrassment for Apple, which wanted to push the graphical new Macintosh, not a text-based 8-bit program. By 1987, Apple had spun off its own apps--including AppleWorks, MacWrite, MacDraw, and MacPaint--into the Claris subsidiary. Claris went on to profitably develop and acquire a suite of Mac productivity apps, but operated at an arms’ length distance from Apple. By 1990, Sculley realized the vast profit potential in application software. Apple had two solid platforms: the Apple II and the Mac. The company’s minimal efforts to market any software for them was clearly a huge mistake. Sculley subsequently decided to retain Claris as part of Apple rather than spinning it off, but that late decision shattered the subsidiary because its employees and managers had been given the expectation that a Claris IPO would make them rich. Many left in disgust.[Office Wars 1 - Claris and the Origins of Apple’s iWork]Microsoft Becomes an Applications Company: 1985 - 1989.At the same time, Microsoft’s graphical Multiplan for the Mac--which ended up being combined with the Chart app and renamed as Excel in 1985--became a huge seller for Microsoft. In contrast, the textual DOS version--which retained the Multiplan name--couldn’t compete with the top selling Lotus 1-2-3 on the PC side.Two years later in 1987, Microsoft’s deal with Sculley expired and the company released Excel 2.0 for the PC, along with Windows 2.0, which copied more of the Mac desktop, including the basic ability to display overlapping windows. No OEMs shipped Windows 2.0 on their PCs, but anyone buying the new Excel got a copy of Windows and a taste of the graphical Mac environment, albeit with Microsoft’s garish colors and its horrific MDI-style interface.Apple Sues to Stop Graphical Copycats, But Only On the PC: 1985 - 1988.While a number of companies delivered graphical environments in the pattern of VisiOn for various computer systems of the time, Apple was only threatened by those that promised to deliver the Mac look on the PC.For example, Apple ignored Berkeley Systems’ mouse-based, windowing GEOS environment, offered initially for the Commodore 64 and later Apple’s own Apple II systems.However, when CP/M maker Digital Research introduced its GEM/1 for the DOS PC, Apple sued and won an injunction that forced the company to remove certain features Apple had originally developed for the Mac, the most obvious of which was its use of graphics regions to draw sophisticated overlapping windows. At the same time, GEM/1 was also being sold for the 1985 Atari ST, but Apple completely ignored that product, enabling Atari to deliver a system so similar to the Mac it was commonly called the Jackintosh, after Atari CEO Jack Trammell. Apple also ignored overlapping windows in the 1985 Commodore Amiga, and a similar graphical desktop in the 1987 RISC OS developed by Acorn Computers. Apple was certainly aware of the British Acorn’s RISC OS, as the two companies had partnered to form ARM in order to develop a new generation of RISC based processors powering Acorn’s RISC PC and later, the Newton. Those same ARM processors now power iPods, the iPhone, and the vast majority of all mobile devices. [Origins: Why the iPhone is ARM, and isn't Symbian]However, Apple went ballistic upon the release of Microsoft’s Windows 2.0 in 1987. One reason was that Microsoft was pointedly using the product as a way to move its Mac applications to IBM’s PC, a move Apple correctly feared would quickly erode the unique value of the Macintosh. Additionally, Microsoft was also describing Windows as the basis of a new interface for IBM’s promised OS/2. Apple was livid that the trusted partner it had launched into the applications business would immediately sell it out and migrate those same applications to directly benefit its main hardware competitor. Despite the fairly insignificant sales of Windows 2.0, Sculley’s Apple sued Microsoft in 1988 over the use of Mac software details it had taken from Apple in its 1985 agreement. It also sued HP over a Windows 2.0 add on pack called NewWave, which supplied additional Mac-like features to the PC. Meanwhile, sales of Excel on the PC gradually began to grow and Microsoft worked increasingly hard to replace its Mac partner and then destroy it, using Windows as a tool to port its Mac applications to the PC instead. [Apple's Billion Dollar Patent Bluster: Patent vs. Copyright]Apple Loses Jobs, Opportunities: 1986 - 1988.In 1986--as Apple’s panic over Microsoft moving its Mac apps to the IBM PC was just getting started--Steve Jobs’ plans to rapidly move the Macintosh into the business and server arena were getting shot down by the more conservative minded Sculley. Apple’s board feared that increased investment in the Macintosh might spread the company too thin.[Steve Jobs and 20 Years of Apple Servers]Jobs subsequently left Apple in frustration to form NeXT, Inc, and develop his own ideas for business oriented workstations. Sculley replaced him with Jean Luis Gassée, who shared Sculley’s vision for dabbling in impractical technology ventures like the Newton and keeping Mac models configured for high end markets.Apple continued to make outstanding profits from increasing sales of the Mac and continued sales of the Apple II, but the company had made a grave mistake in ignoring and avoiding the software business. Even worse, it was now dependent upon a rival company to maintain key software titles for the Mac.Apple was also losing key engineering talent to Jobs’ NeXT, which by 1988 was delivering the first release of what Apple itself should have been working on: its next generation of hardware and software. [Newton Lessons for Apple's New Platform][Why OS X is on the iPhone, but not the PC: The History of NeXT]Sculley’s Apple Bungles Office Applications.While Sculley’s Apple fought Microsoft’s Windows in the courts, it did little to effectively compete in the marketplace, either with the Mac as a platform or in the applications arena to take on what would become the Microsoft Office suite in 1990. To deliver Office, Microsoft simply paired Word and Excel with PowerPoint, a Mac presentation application Microsoft acquired in 1987. Had Apple simply ported its Lisa applications to the Mac, it would have had a head start of several years to develop and refine its own applications suite, and could have maintained them as unique to the Mac without giving away its crown jewels to Microsoft in 1985. After ten years of trying, even Microsoft could eventually deliver a good enough copy of the Mac with Windows 95 in late 1995. After that, Microsoft pulled the plug on Office development for the Mac and didn’t release another update until 1998.[Office Wars 1 - Claris and the Origins of Apple’s iWork]Apple’s Squandered Opportunity in Software Sales.The bizarre thing was that Apple was making money selling AppleWorks on autopilot, and continued to do so from 1984 into the early 1990s. Additionally, the new ClarisWorks for the Mac easily captured the top spot in Mac software sales from Microsoft’s Works within its debut year in 1991. Even so, Apple did little to capitalize upon the discovery that software would indeed sell systems, just as Couch had foreseen back in 1979. Apple had a printing press for creating money, but simply left it idling while Microsoft delivered low innovation software titles and raked in millions of dollars in Mac software revenues. Sculley’s Apple essentially sat back and granted Microsoft full opportunity to clean out its entire business model without a fight, hoping that the law would rush in to correct the inequities at some point in the near future. Instead, the court deliberated for a tech eternity until 1994, and then threw out Sculley’s “look and feel? lawsuit, largely on the basis that Sculley had earlier granted Microsoft limited rights to Mac ideas back in 1985 in his desperate bid to keep Microsoft as a Mac developer. The bitter irony was that between 1985 and 1995, Microsoft needed the Mac at least as much as Apple needed Microsoft. Even in 1997, Steve Jobs could get Microsoft to agree to a half decade of continued development of Office for the Mac by simply adding Internet Explorer to the Mac desktop. Jobs turned down the hardball demand that Apple kill QuickTime, and even got a public relations coup out of the deal by having Microsoft announce a $150 million investment in Apple.Sculley’s penny wise, pound foolish conservative greed destroyed Apple and directly transferred the vast potential wealth of value Apple had originated at great expense for its 1983 Lisa graphical office suite to Microsoft, which subsequently ran with it and deserted the company. [Mac Office, $150 Million, and the Story Nobody Covered][Apple’s NeXT Server Offensive on Microsoft]Microsoft Betrays IBM and Uses Office Against OS/2.Apple wasn’t the only partner Microsoft exploited, turned on, and then tried to drive out of business. The earliest and most obvious example was IBM, which had launched Microsoft into significance as a reseller of DOS. Microsoft betrayed IBM in the development of OS/2, first by pulling out of the operating system partnership, then by canceling Office for OS/2 after shipping an initial version for it in 1992. IBM later bought up Lotus and worked to compete against Microsoft’s growing influence with Office. Microsoft responded by using its new monopoly positions to punish IBM in various moves documented in the Microsoft monopoly trial. That story follows in Office Wars 4. Using the Office Monopoly Against NeXT.Jobs carried lessons learned from watching the implosion of Apple under Sculley to NeXT. His initial goal for NeXT was to build a software platform. However, nobody was shipping hardware up to the task of running an advanced operating system, so NeXT began following the business model of Apple, selling new hardware with advanced software.While Jobs had found it challenging to find software partners for the Mac at Apple, the task was even more difficult at NeXT, which Apple had forced into the ultra high end of the workstation market using a non-compete agreement. NeXTSTEP pioneered advanced rapid development frameworks to make it easier for third parties to deliver software for the new system. When Jobs discovered that Lotus was working to deliver a new spreadsheet paradigm for OS/2, he gave the Lotus team a NeXT system and got involved in refining the software to show off the features of his new platform. In contrast, Microsoft used the productivity applications monopoly it had been handed by Apple to impede adoption of NeXT. When asked about writing software for NeXTSTEP, Microsoft’s Bill Gates famously fumed, “Develop for it? I'll piss on it.? Gates also announced plans to immediately deliver his own advanced operating system with object oriented development frameworks called Cairo, which turned out to be a vaporware lie Microsoft repeated from 1991 until NeXT was acquired by Apple in 1997.[1990-1995: Microsoft's Yellow Road to Cairo]Microsoft’s Murderous Partnerships.Microsoft helped to ensure that neither NeXT nor OS/2 could acquire a broad enough computing platform to drive a self-sustaining software business. Apple was able to maintain a struggling niche platform on the Mac, but fears of stepping on third party developers’ toes actively prevented the company from actually building on that potential until the late 90s. Ironically, Microsoft did just that, by developing its solo PC platform with Windows and then using it to destroy third party developers it viewed as competitors. By tying its Windows and Office products together, Microsoft could strangle its own former partners--the top developers of MS-DOS applications--including WordPerfect, Lotus’ 1-2-3, database and developer products from Ashton-Tate and Borland, and really every major developer on the PC that in any way challenged Microsoft.Microsoft’s coldly calculated murder of every rival DOS application developer and later many of its Windows developers, from Novell to IBM and Sun to Netscape, is an oddly public fact treated as a taboo secret by Windows Enthusiasts, who avoid all mention of it as they talk about how Apple “can’t work with partners? in the rich, supportive way Microsoft supposedly has. Any competition between Apple and third party developers--even with shareware programs--is paraded through the insufferable blogs of ZDNet and the pages of IDG’s InfoWorld/PCWorld/Computerworld and described as unconscionable conduct. This is from writers who all witnessed first hand Microsoft’s massacres of any and all “partners? the company decided no longer suited its fancy. Have these wags all been brainwashed, or are they just lying for money? As a side note, the Office Wars and Microsoft’s monopoly position in applications provide interesting insight into how Apple is deploying its iPhone software strategy, which the next article will examine.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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Forbes' Fake Steve Jobs Is Also Fake On Apple
Daniel Eran DilgerDaniel Lyons is the author of the Fake Steve Jobs blog and a columnist at Forbes. After developing a reputation for attacking bloggers, open source, and any alternatives to Microsoft, Lyons has shed his skin to escape from one scandal while at the same time squirming into position to choke the truth out of his next victim: Apple.Reader Marc Elson sent in a link to Lyons' “Snowed by SCO,? an article Lyons wrote to both apologize for and marginalize his years of articles in Forbes that misrepresented the issues in the SCO Groups' attack on Linux. He blamed his reporting on bad information he'd been fed by SCO. It's easy to backtrack now that SCO is toast; in fact it's rather impossible not to. However, neither Lyons nor Forbes can erase the years of false information and misleading spin they published, which not only idealized SCO but also lambasted any individuals critical of the company. He described anyone supporting Linux as religious folk "convinced of their own righteousness."While fighting for SCO, Lyons also attacked “bloggers? in a front page article in Forbes that screamed, “they destroy brands and wreck lives. Is there any way to fight back?? as if everyone who writes on the Internet operates as a class that can be summarily judged and dismissed at once. [Snowed By SCO - Forbes]Daniel In the Lyons Den Again.Lyons' lack of hesitation in throwing out poorly conceived attacks is getting him into trouble again. He seems to be working frantically to spin together a bizarre new tale of how Apple is going to simultaneously be torn apart by the can-do-no-wrong Microsoft while also turning into a shadow of the evil monopolist itself, threatening us with its fearsome dominance.Lyons resurrected the identical, wholly illogical conundrum of a paradox posited last year by Windows Enthusiasts, principally Paul Thurrott, who spoke in fear of a threatening monopoly position achieved by Apple's iTunes while--puzzlingly--also describing Apple's music business as a pitiful failure that could never withstand the market dominance of Microsoft. Is it part of a new Forbes campaign? Lyons' new work echos other regular articles from Forbes writers, all attacking Apple and reality in the same breath:Presenting Apple TV a supposed flop, despite its profitably outselling the TiVo this year without incurring the tens of millions in losses TiVo has suffered in the last quarter and in every one of the last several years. Promoting MusicNet Digital's failed Microsoft partnership in selling music against iTunes and describing the Zune as something other than a spectacular failure. Even the most giddy Zune fan sites are appalled by Microsoft's lack of support in providing updates and fixes for the Zune's major failures. How is Forbes framing it as some kind of sleeper hit?[The iTunes Monopoly/Failure Myth][Scott Woolley Attacks Apple TV in Forbes, Gets the Facts Wrong][Forbes Prints Insanely Self Serving Attack on iTunes by MediaNet CEO Alan McGlade]When Cost Is No Object: Microsoft Media Center.Reader Robert de Bie forwarded a link to Lyons' breathless accolades over Microsoft's Media Center software, which opened with the line, “Guess who's got the slickest software for handling TV, movies and music? Not Apple.?Lyons compared using a Mac and Apple TV with a PC running Vista Ultimate with Media Center features and an Xbox 360 to relay content to a TV. He raved that the Microsoft solution “can do things with digital media that even Apple can't match.? That's true, as Media Center is principally a DVR, a software version of the TiVo; Apple doesn't sell anything the works like a TiVo to record TV. However, Lyons only noted in passing that “Microsoft charges $400 for Vista Ultimate--$300 too much,? failing to add up that a Mac comes with free Front Row features. Apple TV hardware costs $300; it supplies ultra fast 802.11n wireless and, at a minimum, a 40 GB hard drive.In contrast, an Xbox 360 with a 20 GB hard drive costs $350, and another $100 for slower 802.11b/g wireless. So as a wireless media extender, the Xbox 360 costs $450 (50% more), but gives you half the disk capacity and slower networking.Additionally, the required Media Center software that costs another $400 in Vista Ultimate doesn't magically provide you with a TV tuner, so you still have to buy one.In other words, all the money you throw at Microsoft only gives you software that is otherwise free. Without having to pay for all that software licensing, you can go buy whatever TiVo-like TV tuner for the Mac fits your needs, and solve the problem for hundreds of dollars less.Of course, what Apple wants you to do is go without a TV tuner and an expensive cable subscription and simply buy the TV and movies you want to watch from iTunes. Of course, that's not necessary to use Apple TV; you can also rip your own DVDs or even use it to manage your home movies and free podcasts, something Media Center isn't really designed to do because there's no money in it. Don’t forget that there are more fees involved with Xbox Live services, and that TV downloads are more expensive. You’ll also need to pre-purchase Microsoft’s points, converting your cash into Microsoft Live currency that’s subject to change. And once you buy Xbox Live TV shows, don’t expect them to play on your Zune or Windows Mobile phone the way iTunes content plays on Apple’s iPods and iPhone.Of course, when Microsoft sends writers all this equipment to try out for free, then it’s easy to gush over how great it all works and report, "No crashes, no reboots, no blue screen of death. Stunning," as Lyons did. Had he actually been forced to pay the $840 premium to actually use Microsoft’s system, perhaps he’d sing another tune.While Lyons is certainly entitled to his opinion, he should at least present the facts correctly. Outlining any Microsoft product without a consideration of its true cost is always a mistake, because the true cost is almost always hidden. Lyons also wrote “Microsoft's system supports high-definition video; Apple TV does not,? a line that isn't true. Content from iTunes isn't yet available in HD, but the Apple TV does support HD video from other sources and comes equipped with support HDMI, which only the newest Xbox consoles have. Considering that Microsoft has barely sold any new Xbox 360 units this year, fewer than 20% of installed Xbox users even have HDMI outputs. [Windows XP Media Center Edition vs Apple TV][Forrester Research: Epic Terror of iTunes and Apple TV]Big Brother Says: Apple is the New Microsoft.Since publishing that “Media By Microsoft? article a couple weeks ago, Lyons has ramped up his attack on Apple into a web of false information that approaches his SCO shilling. He even exploits his popular Fake Steve Jobs blog for dramatic effect.Lyons starts his newspeak reporting, ironically enough, in an article titled “Big Brother,? with a comical juxtaposition of Apple's 1984 Macintosh ad and a modern screenshot of Jobs presenting the new 3G iPod Nano against a huge video screen of his own image. Lyons had earlier published the images on his Fake Steve Jobs blog after a reader had submitted them.This is funny stuff, because in both images, there's a greying white man with glasses on a huge TV screen talking. But in 1984, the man is talking about universal ideology to a numb audience, while in the modern scene, Jobs was talking about changing the market for mobile video with a 6.5mm device, and the crowds were enthusiastically applauding.There was one other amusing similarly however: shortly before eating the hammer thrown by the Macintosh girl in orange hotpants, the 1984 Big Brother screen says, “Our enemies shall talk themselves to death and we will bury them with their own confusion. We shall prevail!?In 2007, Jobs has said some similar things about Microsoft, but the Macintosh hammer is actually being thrown at Vista. So while it’s not exactly the same thing, it is a funny coincidence. Along those lines, Lyons provided some examples of how, as an enemy of Apple, he can talk himself to death and be buried in his own confusion.[Big Brother - Forbes]Here's What You Believe.So far, we've just covered the photos on the article. Once Lyons started writing, it was like SCO all over again. He says early iPhone buyers “were threatening to take to the streets again--only this time with pitchforks and torches. They were furious because Apple Chief Steve Jobs slashed the phone's price to $400 from $600, making early adopters look like suckers.?If Lyons really wants to make up garbage and rewrite history, he should confine himself to Wikipedia where he can't do any damage. The people complaining about getting what they paid for were a whiney minority amplified by a desperate press trying to find something wrong with the most successful electronics product launch in history.Anyone who thinks buyers who paid $600 for the iPhone to get the hottest new device available--and who ended up with a phone that cost less overall than even the $99 Motorola Q, and further got a $100 refund credit--are “suckers? needs to reevaluate what being a sucker might mean. Perhaps paying Microsoft $850 for the equivalent of a $300 Apple TV with less storage and a slower network, and then still needing to buy a TV tuner is a better example of being a “sucker.?The only difference is that Lyons didn't get a free iPhone from Apple, but did get a bunch of Microsoft Media Center stuff to try out without having to pay for any of it as the rest of us would have to do, were we inclined to let Microsoft control our TVs.[Ten Fake Apple Scandals: 1 - Phony Rage About iPhone Price and Profits]The SCO Shill Lines Up Behind Microsoft, AT&T, and the RIAA.It might not be a surprise that a writer who identified SCO as safe to cheerlead for because of its seemingly legitimate corporate position would similarly jump at the opportunity to weep crocodile tears for some of the other most reviled companies doing business on the planet. Lyons is apparently not very smart about picking corporate favorites.“It looks like an anti-Apple backlash has begun,? Lyons wrote, noting that NBC Universal pulled out of iTunes to partner with Microsoft's Windows Media DRM-based Amazon UnBoxed store. He didn't mention that NBC also partnered with Fox in setting up a joint Microsoft store, and then went solo on its own website trying to offer ad-encrusted, Microsoft DRM-ed, exploding content. No doubt all of those efforts are going to work out well for NBC.Lyons also said “Vivendi's Universal Music Group also reportedly won't renew its contract with Apple,? without clarifying that only refers to its long term contract; Universal music hasn't budged from iTunes. He also cites unhappy noises from Hollywood about Apple's desire to lower prices to make content more desirable to consumers, who can already obtain movies and TV programming free over the air or via unauthorized downloads.Omitted from Lyon's one-sided overview of the iTunes Store is CBS executives' comments that they are very happy with its deals with Apple, and that both CBS and Fox are offering free season premieres through iTunes.And what about Viacom billionaire Sumner Redstone, who was recently cited by BU reporter Jessica Ullian as saying that “iTunes has 'resurrected the music industry' by creating a legal, affordable, instantly gratifying purchasing system for fans. The challenge now is for the film industry to catch up, he said, and for competing companies to work together to establish new standards and practices.?[CBS and Fox offer free TV through iTunes US - iPod/iTunes - Macworld UK][How iTunes Saved the Music Industry - BU Today]Pity the Poor AT&T.Lyons wrote that “Jobs isn't known for treating partners well,? noting that the iPhone doesn't sell AT&T's worthless media services or overpriced ringtones. That's really an example of Jobs treating the customer well, and the Fake Steve Jobs should know that. Why repeat the “Apple can’t partner myth?? AT&T is making a major turnaround, funded by record numbers of headlines fawning over the iPhone. Apple has propelled Cingular from a middle of the road brand into its new AT&T name, which the company purposely rolled out in conjunction with the iPhone to benefit from the excitement surrounding it. Should we be aghast that Apple declined AT&T's own overpriced MEdia Net TV clips and ringtones? Is AT&T even worried about it?The service provider reported that the iPhone has outsold any phone it has ever introduced. Does that make Apple a bad partner? Would it be better if Apple really was the New Microsoft, extending its support and then yanking it back in a PlaysForSure/Zune style move? Does Lyons really have the extra credibility to burn in making such ridiculous comments? [How AT&T Picked Up the iPhone: A Brief History of Mobiles]More of the New Microsoft Meme.After noting some of Apple's recent successes, Lyons wrote, “the flip side of Apple's success is that Apple has started to seem scary.? Scary, uncertain, and doubtful! “No longer is Apple the plucky underdog out to save the world,? Lyons fears. Oh really? Has evil been vanquished? Is there not still the inky black bile of Windows Media DRM dripping from every alternative store in the universe? Does not Microsoft still have the remains of that $50 billion it took in last year from its monopolies--real monopolies, not the imagined fantasy kind pinned on iTunes by the media? You know, the monopoly in PC desktop operating systems held by Windows, the monopoly in servers, and the monopoly in desktop Office software? The monopolies that earn Microsoft overall profit margins as high as 81% on products that are over a half decade old? From that perspective, Apple could really turn evil over the next twenty years and still not compare to the wrongs we've suffered from Microsoft. Even so, Apple really isn't doing wrong by its consumers. If the best Lyons can do is to suggest that some RIAA labels and Hollywood executives are miffed by Apple's push for low prices, he'd better scramble to find something more problematic than that. I like low prices in content. I don't long for access to AT&T's expensive ringtones.iPhone Price Problems.Apple's iPhone was a better deal at $600 than Microsoft's Windows Mobile Motorola Q at $99, because Apple twisted AT&T's arm to provide lower priced service, making the iPhone around $200 cheaper across two years of use. Apple then dropped the iPhone's price by another $200, making it now almost $400 cheaper than the nearly free phones on the market.Is this wrong? Did Apple harm those of us who recognized value in the iPhone back in June? Did Apple defraud a million people who bought the iPhone at a good price when it lowered the price afterward? [Apple's iPhone Price Cut Unleashes Complaints]Apple TV Only A Flop For Forbes' Frauds.Lyons repeats in passing--without any factual backup--that the Apple TV is a flop. Oh really? Is that because it profitably sold a quarter of a million units with little advertising? Incidentally, that's nearly double the number of new customers TiVo signed up, as reader Timothy Bandy pointed out. He noted that “TiVo-owned subscriptions totaled 1.71 million, up 136,000 on an annual basis compared to the year ago-period.?If Apple sold 250,000 units of the Apple TV, “it's already doubled the amount of new customers Tivo made last year,? Bandy wrote, “or to put it another way, they already have 1/7th of Tivos' customer base without hardly trying. And as you pointed out, I doubt they've lost several million bucks in the process.?TiVo lost $19 million in the last quarter, and $50 million last year. Apple sells the Apple TV at a profit, although not much of one. That's because the company is working to sell content that works on the Mac, and Apple TV only serves as a contributing part of that strategy. Apple is working to expand the market for fair priced Internet downloads, in opposition to high-DRM, high-priced alternatives.Microsoft has lost billions in its consumer electronics products, including the Xbox 360 that Windows Enthusiasts like to compare against the Apple TV. Microsoft also stomped on efforts by Linux users to recycle the old Xbox as a media playback system. Where's the outrage? Where's the “suckers? blubbering? Where's the reporting that “Microsoft regularly betrays its partners?? It's certainly not in the pages of Forbes. [Brent Schlender's Apple TV: Fortune Dud or Fortune FUD?]It's all Downhill From Here.Lyons then complained that iPhone sales must be fading because Apple dropped the price, neglecting to account for the fact that Apple met its million unit sales goal three weeks early. “The next version of OS X, called Leopard, has suffered delays,? Lyons wrote, again failing to compare its 6 month delay to the six year delay of Vista. I guess Apple isn't the New Microsoft after all.Lyons begged for forgiveness after beating on Linux users for years and glorifying a bunch of greedy SCO investors trying to exploit intellectual property rights the company didn't even own. In describing his partnership with Rob Enderle, I downplayed his SCO role after he pleaded for evenhanded coverage of his past, noting that he did publish some correct information after the writing was on the wall for SCO.However, for his shameless attempts to present the same kind of one-sided, half-truth, negative-spin that praises the worst corporations on Earth while reviling the only company that seems to share any interests and values in common with its customers, Lyons has lost the bits of credibility he begged to retain. Shame on him, and Zoon on Daniel Lyons' head. [Daniel Lyons: Fake Steve Jobs and the SCO Shill Who Hated Linux]Thanks to John Schmidt for the “Big Brother? link.What do you think? I really like to hear from readers. Comment in the Forum or email me with your ideas. Like reading RoughlyDrafted? Share articles with your friends, link from your blog, and subscribe to my podcast! Submit to Reddit or Slashdot, or consider making a small donation supporting this site. Thanks!
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50 Killer Mac Apps For Under $50
Who doesn't need more for less? We present 50 Mac|Life-approved applications--many free, all under $50--that'll guarantee you get the most from your Mac without traumatizing your wallet.The Internet is full of noise--countless different applications for every occasion, with reviews everywhere that love and hate them at the same time. While that’s hardly news, it’s still a hassle that isn’t going away. Say you picked up a spiffy new MacBook Pro, and it’s time to kit it out with the leanest, meanest software. After all, Macs have that rich history of garage-roots development, of a few folks in a basement brewing up quality software that smokes the big-name stuff. So you’ve got a feeling there’s great, affordable software just waiting for you to find it--and you’re right. But how do you sift through the zillion calendar apps and jillion media players to find the gems worthy of your hard drive space? And more importantly, your time and money?We’re here to help with a compendium of essential software. It didn’t come easily--we debated, argued, haggled, and even pleaded to secure a prized position on this list for our favorite, most useful applications. But by limiting the software we’re highlighting to 50, we’ve guaranteed you the best of the best--no Internet spew here. And by capping the cost of the software we’ve selected at $50, we’ve made sure you can reasonably buy what you need. You may love your Mac already, but you’re not gonna believe how much it can do once you load up even a few of these choice applications. EntertainmentSure, iPods and iTunes make music and movies easier to enjoy, but they're not without headaches of their own. That's where these awesome apps come in. They take the pain out of kicking back with your favorite flicks and tunes.Simplify MediaShare & stream your iTunes library over the Internet.The iPod has made several portable music formats obsolete, and we sure don’t miss schlepping around fragile cassette tapes or heavy wallets full of CDs. But even the mighty iPod has its limits--namely capacity. That’s where Simplify Media (free, Simplify Media, simplifymedia.com) comes in handy. It guarantees that the size of your music library doesn’t matter by letting you stream music between computers via the Internet. Yup, this app will play your entire library on any computer (as long as the one that has your library is powered up and online).Stream your tunes from home or the next cube.Once installed, a simple login fires up your music. Simplify Media works with iTunes just like the built-in LAN sharing does, and the remote libraries appear under Shared, alongside any local shared libraries. Even better, you can add up to 30 friends’ shared libraries, and an iPhone app ($5.99) lets you pipe your music to your iPhone or iPod touch.SuperSyncSuperSync keeps multiple iTunes collections in sync.Speaking of iTunes libraries--streaming is great, but what if you want to sync libraries across multiple Macs? SuperSync ($22, SuperSync, supersync.com) makes it so. Sure, Apple introduced limited music-transfer capabilities with Home Sharing in iTunes 9, but that feature requires computers to be on the same local network. SuperSync one-ups iTunes by syncing iTunes libraries over the Internet. It’s perfect for anyone who uses multiple Macs, and SuperSync also has a bunch of other tricked-out features. In deference to the record companies, Apple makes transferring music from an iPod to a computer unnecessarily difficult. SuperSync handles the task with ease, making it a bacon-saver when the hard drive in your Mac kicks the bucket. SuperSync will even allow you to sync libraries cross-platform.SuperSync's color-coded interface helps you synchronize your iTunes tracks across multiple Macs.VLC Media PlayerNever worry about video file types again. If most of your Mac video-watching happens in the form of DVDs or QuickTime movies, you probably don’t think too much about player software. But move beyond the most basic video types, and you’re asking for trouble. With the myriad formats, containers, and encoding parameters available, the simple act of playing back a cat video can become incredibly frustrating. VLC Media Player (free, VideoLAN, www.videolan.org) is like a Swiss Army knife for digital media. It’s open source and cross-platform, and the app will play back practically any audio or video file you throw at it. VLC also handles file conversions with ease, so you can use it to convert audio and video for use online or on portable devices.It plays, it converts, it makes toast (okay, maybe not that last one.)RipItBackup & convert DVDs with RipIt.There are plenty of legit reasons to rip a DVD. Backup copies of kids’ movies for the minivan, watching Glee on your iPod touch while you’re on the bus, or even just saving battery power on your laptop (playing back a file from a hard drive is much more efficient than spinning a DVD).RipIt's simple interface makes ripping DVDs seamless and easy.Once the domain of übernerds, DVD ripping is a one-click affair thanks to RipIt ($19.95, The Little App Factory, ripitapp.com). And since it makes full rips, all of the menus, bonus features, and subtitles remain intact. You can play back the resulting files with DVD Player on your Mac or use a freeware tool like Handbrake to convert your rips into iPod-friendly formats. Delicious LibraryWe love the iTunes Store, but we still end up accumulating books, DVDs, console games, and, yes, even CDs. Delicious Library ($40, Delicious Monster Software, www.delicious-monster.com) helps catalog your collections by--get this--taking snaps of UPCs via your webcam and then automatically organizing your meatspace content onto virtual shelves for easy sorting and browsing. You can track loans to friends, post items for sale on Amazon, and publish Web catalogs formatted for your iPhone. That way, you can avoid buying another copy of John Hodgman’s More Information Than You Require. Connect360We’re Apple-faithful, but that doesn’t stop us from engaging in a little Modern Warfare 2 on our Xbox 360. And since the 360 is much more than a simple gaming machine, we also use it to stream iTunes tracks to our entertainment center and view pictures from our iPhoto library on our HDTV--with the help of Connect360 ($20, Nullriver Inc, www.nullriver.com), that is. It works over wired or wireless networks, and it even streams H.264 video straight from our MacBook. Sweet! PeelPack rats, beware: Peel ($14.95, Hjalti Jakobsson, www.getpeel.com) can get really overwhelming, really fast. But if you’re an avid follower of music blogs, Peel can automagically grab new tracks as they’re posted. So forget all that pesky right-clicking and manually adding to iTunes. Just feed Peel a list of your favorite music blogs, and then kick back as tons of new, free tunes get downloaded straight to your Mac. You may never have to buy (or pirate) music again. CoverScoutCover Flow is one of those features that looks great in a demo but doesn’t quite translate at home. iTunes can attempt to find the album art that makes Cover Flow actually useful, but it’s limited in scope and can’t make fuzzy matches. CoverScout ($39.95, equinox USA, www.equinux.com) scours the Internet to find your missing album art and presents you with multiple options to let you choose the best images. Don’t Cover Flow without it. TuneUpFor all of those untitled and mistitled tracks in your music library, there’s TuneUp ($19.95/one year, $29.95/lifetime; TuneUp Media; www.tuneupmedia.com). Like CoverScout, TuneUp can find and download missing album art, but its best trick is cleaning up your ID3 tags--the artist, title, and album info displayed in iTunes. A quick search is all it takes to clear up all those Track 1s and Unknown Artists in your library. It sure beats cleaning up metadata by hand.Next Page: Productivity Apps >> ProductivityTakin' care of business, every day. Takin' care of business, every way. Workin' on a Mac, it's all right. This productivity software is workin' overtime.WriteRoomBlocks distractions so you can write in peace.Proving the tired adage that “less is more,” WriteRoom ($24.95, Hog Bay Software, www.hogbaysoftware.com) is a light text editor with a full-screen mode. Start a new document, and everything else fades away--your Dock, your menubar, and other windows on your Desktop. You’re left with a black screen and friendly green text for a clutter- and distraction-free experience. The Escape key toggles between full-screen mode and windowed mode, which resembles TextEdit with a live word count.WriteRoom can save your work as plain text, rich text, or Microsoft Word’s .doc format. The preferences offer tons of customization: auto-save, character counts, the appearance of text in full-screen mode, and more. But WriteRoom’s real magic is how it gets out of your way and lets you focus on what you’re doing.BusyCalOne calendar application to rule them all.BusyCal ($40, BusyMac, www.busymac.com) is iCal on steroids. It dances circles around iCal, chanting, “Everything you can do, I can do better.” And it’s right. Sharing is a snap: You can set up two-way syncing with your Google Calendar or with other BusyCal calendars on your local network or the wide-open Internet. But even aside from sharing, BusyCal offers tons of calendaring bells and whistles: customizable views, sticky notes, weather forecasts, moon phases, graphical icons, a to-do list, notes, tags, and much more. And since it uses the Sync Services built into Mac OS X, your BusyCal calendars can sync with MobileMe and your iPhone. You can even switch back to iCal anytime without losing any of the events or to-dos you entered in BusyCal.So what if iCal is free? BusyCal is better.ThingsFlexible to-do list syncs with iCal and the iPhone. For busy people like us, a good to-do list is beyond essential. But some that we’ve tried are so complicated that just managing your tasks becomes a chore in itself. So the light, easy-to-understand Things ($49.95, Cultured Code, www.culturedcode.com) is a breath of fresh air. You can go the full Getting Things Done route, adding contexts, priority levels, a tickler file, and so on. Or you can keep it simple, with one-off and repeating tasks and multistep projects. iCal syncing can get your deadlines on your calendar, and Things on the Mac can sync wirelessly with Things on the iPhone ($9.99 in the App Store). We’ve tried multiple task-managment systems, from Web-based ToodleDo to iPhone apps like ToDo to Mail’s built-in To-Do list to good old paper and pencil. Things is the cream of the crop for its good looks, quick entry, and easy syncing.Things uses tags to organize your projects in a million ways--or you can ignore the tags altogether and just work.Express ScribeTranscriptions made easy... well, easier.Transcribing an interview, lecture, or other recording is hard enough, just with the listening and typing. Toss in the extra arm movement as you frantically click from your text editor to your audio-playback application every time you want to pause the recording or rewind a few seconds, and your transcribing job just got tougher and more frustrating. Express Scribe (free, NCH Software, www.nch.com.au/scribe) lets you set system-wide hotkeys for audio playback so you can stay in your text editor, fully control the audio, and never need to reach for your mouse.Express Scribe can also slow down your audio without changing the pitch, supports video, works with lots of file types, loads recordings from analog or digital audio recorders, and more. Plus, it’s completely free. Wahoo!NoteBookThe Mac is silly with note-taking applications (Evernote, Yojimbo, ShoveBox, MacJournal…shall we go on?), but Circus Ponies’ NoteBook ($49.95, Circus Ponies, www.circusponies.com) is a standout. If you subscribe to “a place for everything, and everything in its place,” NoteBook can be the place for notes, Web clippings, bookmarks, documents, voice memos, photos, and more. It struts its flexibility with ready-made templates for planning a trip, writing a research paper, collecting recipes, keeping a journal, and so on, while its fun spiral-notebook interface is a nice touch. TextExpanderA thousand monkeys at a thousand typewriters could produce Hamlet a lot faster if they knew how to use TextExpander ($29.95, SmileOnMyMac, www.smileonmymac.com). This wonder app installs as a System Preferences pane and lets you define shortcuts for your most commonly used words and phrases. Abbreviate long URLs, your email signoff, even your own photo or scanned signature file. Then as you type those shortcuts, they’re automagically expanded to what you really wanted to say. Brilliant. iFinance 3Sure, Quicken is popular and Mint.com is free, but iFinance 3 ($29, Synium Software GmbH, www.synium.de) was built from the ground up just for Macs, and it shows. The intuitive interface makes it a cinch--dare we say a pleasure?--to track your accounts, keep an eye on your cash flow, set up a budget, and graph your expenses. It can also import from CSV and QIF files for easier data entry. Plus, a companion iPhone app lets you enter transactions on the go.FlexTimeThis charming timer app ($18.95, Red Sweater Software, www.red-sweater.com) lets you set up multistep routines that run once or repeat ad nauseam. Each step can be marked by a sound, spoken text, or even running a script. Once your routine is perfect, you can export the audio to iTunes--great for following a recipe’s carefully timed steps or taking your favorite yoga routines on the road. DEVONthink PersonalAnother great catch-all for storing, sorting, organizing, and searching information, DEVONthink ($49.95, DEVONtechnologies, www.devon-technologies.com) can take almost anything you can throw at it. Documents, PDFs, photos, multimedia files, bookmarks, webpages, iChat logs--all of those can be imported, sorted, and read right in DEVONthink. Searching is easy, and you can cobble together a brand-new document from items in your DEVONthink database and export it to your favorite text editor for printing or as HTML for posting. Next Page: Internet Apps >> InternetIt's a wild place, that Interweb, so there's nothing like a few primo apps to tame everything from blogging to FTPs to Twitter and Flash banners.TransmitTraveling the two-lane FTP highway.FTP has been around forever. Social networking and cloud computing may come and go, but FTP is in it for the long hall. Fortunately, there are a wealth of great FTP clients for the Mac, and the best of those is Transmit ($29.95, Panic, www.panic.com/transmit). The client utilizes a split directory window that shows the path on your computer and the path on the FTP site. With in-app search and the ability to sync folders on your Mac and on the FTP site, Transmit helps alleviate the search and drag-and-drop blues of other clients. The sync feature is especially helpful for Web developers and designers. You can even create desktop droplets for quick uploads to heavily used sites.Two-window FTP FTW.Mac-JournalWeb-based apps suck.Blogging about your life is a faux pas. Blogging about anything else that people actually care about is the proper way of utilizing of the blogging systems available out there. The ongoing problem is that most blogging platforms are bit of a pain to use because they’re Web-based. Plus, if you’re somewhere without Internet access, you can’t start laying out your blog posts for your site. MacJournal ($39.95, Mariner Software, www.marinersoftware.com) solves that problem with an easy-to-use multiplatform blogging client. Lay out your articles offline with images, video, and audio, then save them for later posting. The app includes the ability to both write in full-screen mode so you won’t be interrupted by your Twitter friends, and to record an audio podcast in the client.Create blog posts quickly and without browser issues.TweetieMulti-account Twitter action.After wowing the world with its iPhone Twitter app, atebits decided to release a desktop version of Tweetie ($19.95, atebits, www.atebits.com/tweetie-mac/). The app can handle multiple Twitter accounts, compose tweets in a separate window, allow you to change the account you’re sending a tweet from on the fly, and let you drag and drop pics and videos right into the Compose window. Don’t have the perfect media on your Mac for a tweet? Record a video or shoot a pic from your iSight camera directly in Tweetie. And since Twitter conversations can be difficult to follow, Tweetie displays the conversation you’re having in a timeline if you just double-click one of the pertinent tweets. The Tweetie bookmarklet in Safari also allows you to share links quickly from your browser.Have an actual conversation on Twitter with Tweetie.DropboxStop, drop, and roll on home.Transferring large files can be a huge pain. Where the hell did you leave that thumb drive? External hard drives leave an unsightly bulge in your pocket, and all those cables are always getting tangled in your shoes. That’s a safety hazard, son. Dropbox (2GB storage for free, 50GB for $9.99/month; Dropbox; www.dropbox.com) is a cloud-based storage drive that you can access from any computer or iPhone. Just pop files into the Dropbox folder on your Mac, and it automatically syncs up with the online disk (which you can view on Dropbox’s website) and with any other machines you have the application installed on. You can even share folders and files with other Dropbox users. If the free 2GB box doesn’t cut it, you can upgrade to 50GB for $10 a month.Access your files from anywhere in the universe (with an Internet connection).LogMeInIf you need to remotely access a Mac or (gasp) a PC with Windows on it, LogMeIn (free, LogMeIn, logmein.com) allows you to peer into your remote computer from anywhere. You can launch apps, move files, and adjust your preferences via a Web-based interface, as if you were sitting at that computer. For $29.99, you can get your iPhone in on the action too. TweetDeckIf you’re a Twitter power user, TweetDeck (free, TweetDeck, www.tweetdeck.com) should be in your arsenal of Twitter apps. The interface is a series of columns that displays info like your friends’ feeds, saved searches, mentions, direct mentions, and Facebook updates. You can also keep up with trending topics with just a quick glance. If there’s something you need to track on Twitter, TweetDeck can make a column for it. VuzeAllegedly, BitTorrent steals medication from senior citizens, but isn’t it time to forget about all the evil things it supposedly does? Instead, focus on the greatness of Vuze (free, Vuze, www.vuze.com) and its ability to download legally available video files. After you’ve done the downloading, Vuze can convert your files for use on the iPhone, Apple TV, iPod, Xbox 360, TiVo, and PlayStation 3. It’ll even stream videos to your set-top boxes. Nice! BannerZestCreating Flash banners is difficult, especially when you don’t know or own Flash. BannerZest ($49, Aquafadas, www.aquafadas.com) takes the pain out the process and gives you a simple way to create quick, beautiful Flash banners. From a standard gallery to an interactive experience, BannerZest comes with a collection of themes for different uses, and it uploads your banners to your FTP or MobileMe disk. FileChuteSending large files over email can result in the dreaded bounced email. FileChute ($17.95, Yellow Mug Software, www.yellowmug.com) works with your MobileMe-, FTP-, or WebDAV-accessible Web server. Drop your file into the app, and it uploads it to your online server of choice and then creates a URL to add to your email. If you drop more than one file, you get an archive uploaded to your server. Adios, bounced emails! Next Page: Content Creation Apps >>Content CreationSure, Adobe's stuff is the gold standard, but you don't want to have to count on a good night at the poker table to pay for it, right? Cue these killer applications, which let you effectively draw, edit photos, render, animate, and even scratch for a very fair price.djay 3Budgeted beats to grow on.You want to spin phat beats, but your slim bank keeps you from purchasing the high-end DJ equipment and software. That’s okay, young DJ-in-training, djay 3 ($49.95, algoriddim, www.djay-software.com) gives you everything you need to rock the house without losing your shirt. This surprisingly robust audio-mixing software integrates with your iTunes library and puts all the usual mixing and scratching right on your desktop. The application supports multitouch trackpad scratching and fading between tracks, so it’s especially perfect for the last few generations of MacBooks. And as you grow as a DJ, the application will grow with you thanks to its support for MIDI controllers. That means when you get the cash for those fancy digital mixers and turntables, djay will be right there with you.With your iTunes catalog at your fingertips, you'll find some pretty interesting mashups.AudacityFree audio editor extraordinaire.Audio editing seems simple at first. Then suddenly, you’re knee-deep in samples, frequencies, and bitrates. Sound editing really is part science, part black magic, so we’re thankful that Audacity (free, SourceForge, audacity.sourceforge.net) removes one of the biggest obstacles: choosing a quality application and figuring out how you’re going to pay for it. Audacity is both terrific and free, which is kinda hard to beat. An audio-recording and -editing application, it captures up to 16 channels at once from multiple sources, features noise removal, includes a metadata editor, and supplies unlimited undos. It can handle most of the audio files out there, and it’ll work with multiple files types in the same project. Audacity is also is cross-platform, so if you’re a recent Mac arrival, you may already know about its awesome power.So many features, you'll second-guess the price: free.SketchUp3D for you and me.Maya, 3D Studio Max, and SketchUp--all of these will let you create magical 3D worlds. Only one will do it for free, and you probably nailed it in one--it’s Google’s SketchUp software (free, Google, sketchup.google.com) that brings the world of 3D to the average Joe. You can create your own items or utilize Google’s 3D warehouse to find models created by other SketchUp users. With all those models at your fingertips, you can create floor plans for your home, build a level for your favorite FPS, or export the files to animation software or Photoshop. The application includes tutorials that’ll get you up and rendering in no time at all… so now nothing stands between you and virtual-world domination!Build a virtual man-cave for you and your stuff.RingerWham-bam ringtone, ma'am.We get tons of people asking us, “How do I make a ringtone for my iPhone?” Until recently, we told them to launch GarageBand, cut a ringtone, and export it to iTunes. Now we recommend Ringer ($15, Pixel Research Labs, pixelresearchlabs.com/ringer) as the quickest and easiest way to create ringtones from your favorite songs and audio files. Ringer has access to your entire iTunes library and works with MP3, AAC, MOV, MP4, M4V, and QuickTime files. Yeah, you can make a ringtone from a video file. A super-simple editor with waveform information makes it a snap to select the perfect section of audio, and you can fade in and out of the file and preview the ringtone before cropping it and sending it to iTunes for a sync with your iPhone. AcornUsing an image editor doesn’t have to cost you hundreds of dollars. In fact, with Acorn ($49.95, Flying Meat, www.flyingmeat.com/acorn), you’ll get features like layers, AppleScript support, 64-bit support, drawing, and filters in a package that’s easy on the wallet. This easy-to-use software strips away most of the features most people don’t use and gives you a clean image-editing tool. InkscapeWhile raster-based image editors like Photoshop are great at pushing pixels around, the vector-based drawing programs are where all the real action happens. The open-source application Inkscape (free, Inkscape, www.inkscape.org) is similar to powerhouses like Illustrator and CorelDraw, but with one important difference--it’s free. The app utilizes the Scalable Vector Graphics (SVG) file format and includes a nice 3D drawing tool that allows you to set your vanishing points. ScreenflickWith Snow Leopard, Apple introduced screen-capture into QuickTime, and it’s a nice feature if you’re looking to make a quick full-screen screencast. But if you want something that has features like fixed location output at up to 60 fps, Screenflick ($25, Araelium Group, www.araelium.com/screenflick) is an application you can get behind. It’ll highlight mouse clicks and keyboard events, adding a nifty visual cue into your screencasts that highlights what you’re doing. BracketeerWhile your eye can take in an amazing range of light to dark, your camera cannot. In order to help create images that include a tonal range that the average camera can’t capture, HDR applications and plug-ins have appeared on the market. These applications take a series of images that have been bracketed from dark to light and combine them to include the darkest darks to the lightest lights in one HDR image. Bracketeer ($29.95, Pangea Software, pangeasoft.net/pano/bracketeer) is a standalone application that does just that. Adjust the saturation, the contrast, and exposure from within the application. The application will even auto-align your images in case you got the hiccups while taking your pics. iStopMotion 2 HomeMost animators’ first animation was probably a stop-motion piece with Star Wars action figures. And whether those childhood lightsaber battles have you hoping to become the next Brad Bird, or you just love the look of stop-motion, iStopMotion ($49, Boinx Software, www.boinx.com/istopmotion/overview) is a quick, easy way to create simple stop-motion animations. Use your iSight or connect a camera to your Mac and start making your own Wallace and Gromit short. You’ll feel the Force, Lu… sorry. Next Page: Utility Apps >>UtilitiesSlick utilities can add crucial functionality to your Mac, so we've selected the best options for everything from secure password managers and system-troubleshooting tools to an app that will let you play Windows games on your Mac... without Windows!AppZapperCompletely trash applications.Unlike using Windoze, installing and uninstalling apps on a Mac is painless. Drag an application’s icon into your Applications folder, and you’re pretty much good to go. Deleting them is just as simple--just grab them and toss them into the Trash. But if you’ve ever dug around Library or System folders on your Mac, you’ll see that even after you Trash an app, many of them leave crumbs in different parts of your machine. For cleaning up those last little bits, AppZapper ($12.95, Austin Sarner and Brian Ball, www.appzapper.com) is a must-have utility that’s also great for troubleshooting problems. Wiping out all of an application’s preferences and other random files can often turn a troublesome app into a perfectly behaved one after a clean reinstall. Completely remove unwanted applications with a simple drag and drop.HazelClean and organize your Mac--automatically.Hazel ($21.95, NoodleSoft, www.noodlesoft.com) is kind of like Rosie the Robot for your Mac. Or it’s like OS X’s Folder Actions… if they were super-awesome, easy to use, and perfect for helping you keep your Mac’s folders and files organized. Hazel installs as a pane in System Preferences, monitoring locations that you choose, and performs actions on files based on your criteria. By creating simple rules, you can delegate repetitive and annoying file-management tasks to Hazel--for example, automatically add downloaded MP3s to iTunes or move DMGs to an archive on an external drive. Hazel can delve deep into metadata for complex actions like copying images into subfolders by ISO settings or reorganizing music files according to bitrate. You can even set up simple rules for auto-deleting items that have been in the Trash longer than a certain amount of time.1PasswordKeep all your confidential info on lockdown.You’ve heard it before--secure, unique passwords are the way to go. Yet there you are, still using the same password for everything from your maclife.com login to your Gmail and your bank account. Do we even have to tell you again why that’s a colossally bad idea? 1Password ($39.95, Agile Web Solutions, agilewebsolutions.com) can help clean up your online act, creating and managing complex passwords for every online account and then logging you in with a keyboard shortcut. The app can also be used to securely store personal information like credit card numbers and addresses for use in Web forms. And since all of your passwords are unique, you won’t have to worry about your banking info being compromised because of a data breach at that sketchy Russian website you used to download MP3s for a penny.1Password securely stores Web passwords, logins, software licenses, and other important information.iPhone ExplorerStore & browse files on your iPhone.Breaking tradition with the iPods of yore, Apple doesn’t provide the ability to use your iPhone as a USB drive. iPhone Explorer (free, myPod Apps, www.mypodapps.com) is a simple app that will let you drag and drop files onto your phone for easy portability. The app itself is lightweight, and all it takes is a USB cable to view your iPhone’s folder structure. In addition to storing files, iPhone Explorer can be used to restore iTunes tracks from your iPod to a Mac or to rescue photographs from the depths of your iPhone’s memory. No jailbreaking is required, but more adventurous users with jailbroken phones can also recover contacts, messages, email, and other data. It’s a powerful tool, but it’s simple to use for the careful novice.AppleJackAppleJack (free, The Apotek, applejack.sourceforge.net) is one of those things you’ll install once and never think about again—if everything goes right. But if, god forbid, your Mac starts acting weird one day--or stops acting, period--it’ll be AppleJack to the rescue. It’s a command-line utility for diagnosing and repairing problems with your computer. Use the menu-driven system to repair permissions, validate preferences files, and remove screwy cache files.SuperDuperWith Time Machine built into OS X, there’s really no good reason not to have an automatic backup. But Time Machine has its limits--a big one being the lack of bootable backups. SuperDuper ($27.95, Shirt Pocket, www.shirt-pocket.com) easily handles creating and updating bootable clones of your Mac’s hard drive so you’ll be ready to go when disaster strikes. Just plug in your clone, restart, and you’re up and running again. CrossOver GamesPC fanboys like to slag the Mac for having fewer games, but with CrossOver Games ($39.95, CodeWeavers, www.codeweavers.com), Mac users--and Linux fans too--can easily play games coded for Windows machines. The list of officially supported games is hundreds deep, and since CrossOver is based on Wine, you don’t even need a copy of Windows just to play Team Fortress 2. Clean My MacHard drives are never big enough. Whether you have a MacBook Air or a Mac Pro, there always comes a point when there’s just not enough space on your internal disks. Clean My Mac ($29.95, MacPaw, macpaw.com) can help with that problem, scouring your Mac’s drive and tossing out all sorts of gunk you don’t need. Use it to toss unneeded language files, scrub extraneous code from universal binaries, and thoroughly clean up after deleted applications. rooSwitchOS X’s Fast User Switching is handy for juggling multiple user accounts and their corresponding settings, but rooSwitch ($19, Rocket, rooswitch.com) allows you to maintain different settings on a per-application basis. Use it to manage Home and Work browser profiles, for example, or to have different profiles in your word processor for writing or editing documents. rooSwitch works with nearly any application, and it supports Automator and AppleScript for the ultimate in customizability. Next Page: Wild Card Apps & Staff Picks >> Wild CardsNot all Mac apps fall into your neat little categories. These five break the mold and completely deserve a place on your hard drive.BricksmithVirtual bricks you can't lose or step on? Sold!Legos are the official plastic brick of Mac|Life--we’ve had many discussions about the empires we built in our childhood bedrooms and how much we miss “playing Legos” as the soulless adults we are today. Bricksmith (free, donations accepted; Allen Smith; bricksmith.sourceforge.net) lets you recapture the magic in a highly geeky way. It’s a 3D Lego-model creator, offering drag-and-drop construction using thousands of parts in every color of Lego’s rainbow. Tutorials and the one finished model that’s included show you the ropes, and once you’re done with your virtual creation, you can export step-by-step instructions to build it for real. There’s even a mini figure generator where you can design and outfit a matching Lego man and insert him into your model. This software couldn’t be cooler.We can't believe an application this sweet is donationware.CameraBag DesktopGive your photos a new identity or some old-timey charm.We named the iPhone version of CameraBag one of our “101 Essential Apps for 2008,” and now the same fun can be had on your Mac, thanks to CameraBag Desktop ($19, Nevercenter, www.nevercenter.com). You drag in a digital image, and the app re-creates the look of a real film photograph--choose from Helga, Lolo, Mono, 1962, 1974, Instant, Magazine, Cinema, or Colorcross.For more variations, click the Reprocess button, and all the options will change their look and coloring just slightly. Or check the Multi-filter box and experiment with adding multiple filters to a single photo. Of course, you can export your altered images back to your hard drive without affecting the original file. The novelty of taking an everyday digital snapshot and making it look like a Polaroid image or washed-out 1974 photograph never gets old.Your digital photos, plus extra personality.SousChefRecipe database + shopping list + cooking assistant = one kitchen lifesaver.SousChef ($30, Acacia Tree Software, acaciatreesoftware.com) edges out MacGourmet ($49.95, www.marinersoftware.com) in the cooking-assistant category for its cloud database of recipes. Every time a SousChef user enters a recipe (133,000-plus at press time), it’s synced to the cloud, and you can search those and import them into your own library. You can also opt out of sharing your own recipes so Aunt Erma’s secret matzo ball soup stays in the family.Once a recipe’s in your library, you can edit, print, email, or blog it--or even add its ingredients to your grocery list. Click the Cook button for a full-screen view of the instructions that you can read from across the room, keeping your Mac out of the splatter zone. The Mac’s built-in speech recognition lets you advance the recipe’s steps with your own voice, or you can use the Apple Remote or a Keyspan Front Row Remote.TemporisAttractive, drag-and-drop timelines make it easy to "show, don't tell."Everyone loves a good infographic, or at least geeky types like us do. (And the geeks shall inherit the earth, don’cha know?) Temporis ($24.99, Bartas Technologies, www.bartastechnologies.com) makes it easy to create neat-looking timelines on your Mac, which you can then print or export as PDF or TIFF files that are ready for importing into your presentation software, word processor, or page-layout app.Adding new events is just a Command-click away, and it’s a snap to drag the start and end dates around on the timeline. The Arrange button will automatically stagger your timeline’s events into the most logical and easy-to-read order, and the Inspector lets you tweak fonts, colors, titles, labels, and your timeline’s span and intervals. You can even export the event data separately as an XML or CSV file.Manga Studio Debut 4Create your own comics and manga, and even manga-fy your photos.Manga Studio Debut 4 ($49.99, Smith Micro, my.smithmicro.com) is a must-have for fans of Japanese manga or anyone who wants to make their own comic books. Its ingenious Beginner’s Assistant groups together the tools by processes so you can intuitively wind your way through a typical manga workflow: sketch, panel, draw, tone, and add character dialogue.You can scan or draw your own art (graphics tablets supported, natch), play with the included samples, purchase manga content from www.contentparadise.com, or even import your own digital photos and watch Manga Studio make them all comicky-looking. Draw speed lines, add dialogue bubbles, move your pages around, and then print or export your finished comic book. Manga Studio Debut 4 is the younger brother to professional-level Manga Studio EX 4 ($299.99), but Debut has plenty of advanced features too, including layers, templates, customizable patterns, and more.Mac|Life Staff PicksBass TunerI’m a beginning bass player--like, very beginning. So it’s a huge help that I don’t have to worry about staying in key. This terrific, simple, and streamlined little app ($9, www.rustykat.com) lets me quickly get in tune in front of my MacBook using the built-in mic. With that necessity sorted, I can fire up some tracks and tablature and focus on struggling to play along.MultiwiniaMultiwinia ($19, www.ambrosiasw.com) offers crazy replayability. You devise a strategy for your stick-figure army, then watch them take on up to four other teams in six game types on 40 vector-graphic maps. Online multiplayer against Mac and Windows players works flawlessly and keeps me coming back for more. No Napoleon complex necessary. MetaXIf you need to tag a large amount of MP4 files, you could use iTunes’ painfully slow process. Instead I found MetaX (free, www.kerstetter.net) for all my tagging needs. The app will search the IMDB catalog and plug the information into the appropriate fields, then share that info via tagChimp. You can even scan DVD barcodes via iSight! BeanFor a word dork like me, word processors are a big deal. Bean (free, www.bean-osx.com) is a lightweight, open-source word processor. It’s missing many of the blinky lights and thingamajigs of the big boys, and that’s exactly the point. Fewer distractions equals better writing, faster. And for anyone who needs to hit a certain length, the live word count rocks. FluidI often find that Firefox has the tendency to crash when I have too many Web applications running. But Fluid (free, fluidapp.com) lets me create a site-specific browser out of my most essential websites, like Google Docs and Flickr. Simply plug in the URL, and voilà! You have a separate application running that won’t go down if something else does. Next Page: More Gaming Bang for 50 Bucks >> More Bang for 50 BucksSome of the Mac's best games are also its cheapest? Sweet!Fifty bones won’t buy you even one new Xbox 360 or PS3 game, but on the Mac, you can snap up a stack of premier games for less than that. Or at least, that was our theory when we gave Florence, our new associate online editor, 50 whole American dollars and asked her to max out her Mac with the best gaming that short stack of money could buy. Man, did she score--check out the results of her diligent “research.”Plants Vs. Zombies$16, amazon.comLine up perilous peashooters and sun-soaking sunflowers against an abominable horde of zombies in Plants vs. Zombies.This animated tower-defense favorite pits you against a horde of zombies with one thing on their (decaying) minds--invading your home for brains! Pit your arsenal of zombie-fighting plants, each with their own spectacular organic weaponry, against 26 zombies and 50 levels of adventure. Fair warning: Once you start playing this excellent game, it’s incredibly hard to stop. World of Goo$10, amazon.comStack up adorable globs of goo to build structures and watch them band together as you help transport them across various levels.World of Goo is another addictive and totally adorable puzzle game. Created around the idea that circular goo balls make adequate building materials (naturally), the game has you solving puzzles by dragging and dropping goo to create all kinds of crazy structures that enable you to transport your goo across the level. The oh-so-cute googly-eyed blobs pack the game with charm, and you can also connect online and play against other Goo architects around the world.Braid$15, playgreenhouse.comBraid's aesthetically appealing backdrop and profound storyline will keep you engrossed until the very end.Some games defy description, and Braid might be easy to pass over because it appears to be just a mix of platforming and time control set against a gorgeous backdrop. But it subverts and transcends those two well-worn clichés with brilliant design and an absorbing story that packs a twist that you’ll never see coming. Watch the YouTube videos if you need help solving its puzzles, but just make sure you see this masterpiece through to the end.Balcassa$8, openplanetsoftware.comBalcassa has a mountain of exciting brainteasers for the puzzle fiend.Balcassa feeds off those nightmares you still have about attempting to master that archaic, rainbow-colored Rubik’s cube. And while most of you probably never cracked the damn thing (we didn’t!), Balcassa gives you a second chance. The objective of the game is to slide the cubes into a specific sequence, pattern, or orientation. It may sound like a simple task, but much like fiddling with a Rubik’s cube, figuring it all out is the real reward.Freeware FunIf you’re interested in first-person shooters and MMORPGs, Quake Live and Second Life can give you hours of entertainment at our favorite price: $0.00. Both games perform smoothly on Mac OS 10.4 or later. Quake Live doesn’t require beefy hardware because it runs through your Web browser. But that doesn’t stop it from delivering all the fast-paced action of the classic first-person shooter. Second Life, while not as packed with storyline as World of Warcraft, offers a similar massively multiplayer world where you can meet people, customize your character’s look, and participate in a virtual world that’s just like our own. You don’t even have to watch the clock to make sure you’re on time for a player-versus-player raid!You don't need fancy computer hardware to frag your way through this beloved shooter.Vital Statistics on Our 50 Killer AppsTotal cost if you bought all 50 apps: $1219.83Number of apps that are free: 13Apps that have an iPhone counterpart: 15Whaddaya waiting for? (apps that have a free demo): 39Number of countries these apps were born in: 7Apps named "iSomething": shockingly... just 3!Apps that require Snow Leopard: 1Apps that require Leopard: 14Apps that promise "iLife integration!": 9
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The Complete History of Social Networking -- CBBS to Twitter
It was Jan. 16, 1978, and the world was in transition. The Sex Pistols were on the verge of disbanding. Future Macintosh architect Jef Raskin was settling into his new job at Apple Computer Inc. And it was snowing in Chicago. A lot.But while Ward Christensen and Randy Suess, two members of the Chicago Area Computer Hobbyists Exchange, were holed up during the not-so-great blizzard of 78, they werent wasting their time playing Uno or watching Logans Run. They were making history.Just two weeks after that fateful snowstorm (though the pair waited another two weeks to unveil their creation, since no one believed it could be written in two weeks of spare time), the worlds first online social network was born. All points bulletin boardIt all started with former IBM employee Christensens simple concept.At our club meetings, we had a cork board and push-pin bulletin board, with 3x5 cards with things like Need ride to next meeting, Lets get together for a group-purchase of memory chips, Anyone else have a KIM-1? etc. So, I came up with the idea of computerizing that.Dubbed CBBS (Computerized Bulletin Board System), Christensen and Suess developed a virtual system where users could post public messages akin to an office cork board. Built to utilize Wards own MODEM (later XMODEM) file transfer protocol, CBBS was created to fill a specific need--informing the groups other members of their group about meetings and important announcements without placing dozens of phone calls--but as more members began to dial in to talk and share information through individual postings, the early makings of a small virtual community began to emerge.The original CBBS ran off a S-100 motherboard kit that Suess had purchased at some fleamarket and was limited by its inability to allow simultaneous users. But thats not to say Suess brainchild wasnt impressive:(The S-100) was mounted on a BUD chassis with a single density 8 inch floppy drive. On the motherboard was some 8080 cpu (upgraded to a Z80) a Hayes 300 baud modem card, a 3P+S board with the parallel port used for control signals, a Processor Technology VDM video display card, and an 8k memory board. There was also a card with 8 1702 EEPROMS that held the CP/M BIOS, video display drivers, and debug code, all written by Ward. I had a EPROM burner, and Ward made sure all the BIOS variables and experimentor stuff ended up in the last 1702. Musta re-programmed that sucker 10 times a week for a few months.All that reprogramming paid off. While CBBS didnt exactly set the world on fire--after all, only a select few could take advantage of it--other ASCII bulletin boards followed its lead and began to pop up across a variety of platforms (including AppleNet and GBBS for the Apple II), each with a specific purpose. In the early 1980s, Bulletin Board Systems slowly began to become more streamlined as the Microsoft Disk Operating System brought a measure of standardization to the industry; not long after, MS-DOS BBS programs--pioneered by RBBS-PC and Fido--sprouted up as modem speed improved and boards attracted more members.As bulletin boards expanded, so did their scope, and soon members began to actually converse with each other, replying and responding to posts as multi-user capability became available. One of the first of these types of communities, the Whole Earth 'Lectronic Link (WELL), was conceived in 1985 as a place for Stewart Brands Whole Earth Review readers and contributors to voice their opinions and bounce ideas off one other and grew into one of the oldest, most respected boards around.But it wasnt until the rise of commercial Internet service providers--first Compuserve, followed by AOL, Prodigy, EarthLink and others--when social networking truly began to take shape. Connect the dot-comsAs ISPs opened the Internet to anyone with a phone line, once-exclusive clubs became overrun with members, and the desire for individuality quickly took root. Bulletin boards certainly had their place in the fledgling World Wide Web, but a few sites began to offer users more variety and personality with a focus on establishing unique online identities.One of the earliest and most successful of these virtual metropolises was BHI (Beverly Hills Internet), which turned the BBS concept on its head. Instead of a scanning a giant board to find a topic worth discussing, BHI users (dubbed Homesteaders) chose one of several specialized neighborhoods to call their home. Inside, community members were introduced to a brave new world of HTML that most of them used to create god-awful representations of themselves. As more users began to crowd BHIs chat rooms, galleries, member pages and, of course, message boards--to the tune of six million page views a month--a more suitable name was slapped on the site in late 1995. Now known as GeoCities, the community flourished in the face of stiff competition from Tripod, Xoom and Angelfire, and by 1997 boasted a Homesteader population of more than a million members. Around the same time, a pair of Cornell students were launching a boom town of their own called theglobe.com. Built much like GeoCities--but without the Hollywood gloss--the network gave users the freedom to personalize their online experiences by publishing their own content and interacting with others with similar interests. Ultimately doomed by its own inventiveness, theglobe became the poster boy for the dot-com bubble, posting a record IPO that fell from $850 million to barely $4 million in less than three years.But while theglobe may have faded more quickly than its peers, its impact on the social networking world cannot be denied. Founders Todd Krizelman and Stephan Paternot saw in the Internet a way to shrink the world by linking peoples common likes and dislikes, a concept even Apple tried to tap into with the launch of its eWorld online service on June 20, 1994. Built around a Community Center where ePeople would gather to meet and mingle, the high-priced eWorld experiment struggled to attract members, lasted less than two years and barely registered on the social-networking radar.But while GeoCities and theglobe.com struggled to squeeze money out of their significant membership rolls, one specialized service hit on on idea that immediately paid dividends. Founded in 1995 by ex-Boeing exec Randal Conrads, Classmates.com promptly filled a need no one realized they had. Born out of a basic desire to help people rekindle their youth, Conrads archetypal site ignited a torrent of grads eager to hook up with old flames, football buddies, lab partners and crushes. Registration, as expected, was initially free, but as more and more matches were made, Classmates.com eventually adopted a subscription format that set it apart from its contemporaries. Tens of millions of users signed up to track down their school chums--to varying success; reports of spam, overcharging and cancellation issues plagued the site for years--and its self-contained business model (all communication was routed through Classmates.coms servers) became a paradigm for future networks. An equally successful subscription site, Reunion.com (later MyLife.com), started in 2002 and expanded Classmate.coms objective well beyond the classroom.(As social networking was still finding its legs, a new method of communication called instant messaging was sweeping the globe, propelled by the 1997 release of AOL Instant Messenger. Though mostly limited to friends you actually knew, IMs system of short, rapid correspondences had no small impact on the proliferation of online communities.)A bona fide precursor to the modern social networking sites, the short-lived SixDegrees.com (1997-2001) didnt attach any strings or conditions to its match-making. After setting up an account, users with similar likes and dislikes logically began to fill each others rings based on the strength of their connection (closest friends occupied the fifth degree and so on) to create--quite literally--a circle of friends. Inventive and popular, but saddled by an unprofitable, ad-supported system, SixDegrees was sold in 2000 and jettisoned shortly thereafter.Its focus on indirect relationships, however, didnt go unnoticed. In March 2003, programmer Jonathan Abrams launched the first site that got everything right. Melding many of its predecessors finer points, Friendster was an immediate hit, attracting some three million registrants inside of its first six months. On a path to make friend a verb long before Facebook hit the scene and take over a niche it basically created, Friendster shouldve become a household word. Instead it fell victim to its own success.As Friendsters logs grew, the sites servers struggled to handle the traffic and performance slowed to a virtual crawl--its still slower than 85 percent of sites, according to Alexa Internet--but Abrams was too focused on the future to worry about the nagging problems of the present. In November 2003, the free-wheeling CEO spurned a Google buyout offer of $30 million with dreams of turning Friendster into a multi-billion dollar enterprise. Turns out he could have used the muscle.Next: MySpace, Facebook and Beyond MySpace invadersA few months before the Google offer, a small group of L.A.-based eUniverse employees (and Friendster members) trained their sights on knocking the social network site off its lofty perch. Using the full lot of their companys resources--including all 250 colleagues, who were tasked with joining and signing up at least 10 buddies--MySpace hit the ground running and never really slowed down.Armed with deep pockets and a vast database, co-founders Chris DeWolf and Tom Anderson utilized eUniverses marketing savvy to quickly set itself apart from Friendster. By giving users total control over content and peddling their site as a true virtual self-expression, musicians, celebrities, movies, TV shows, start-ups, presidential candidates and every adolescent with access to a computer soon flocked to MySpace to establish online identities. While DeWolf reportedly toyed with the notion of a monthly MySpace subscription fee, the sites founders ultimately decided on an ad-generation system that attached semi-obtrusive banners to individual sites; a later platform, dubbed HyperTargeting, sharpened this model by routing advertisers to sites based on users specific interests. After it was sold to Rupert Murdochs News Corp. in July 2005--barely two years after its founding--MySpace aggressively expanded its role as a social networker with MySpaceIM (instant messaging), MySpaceTV (video sharing), MySpace Classified (personal ads) and MySpace Mobile in an attempt to keep pace with the new kid on the block who was making a lot of noise.Face to FacebookIt all started with Harvard computer science major Mark Zuckerbergs juvenile concept.In October 2003, an inebriated Zuckerberg hacked into some of his compatriots face books and set up his own site, Facemash, to compare their less-pleasing attributes in a split-screen comparison. It lasted just a few days before school administrators shut it down, but the seed was planted.The following semester Zuckerberg gathered three of his roommates--Chris Hughes, Dustin Moskovitz and Eduardo Saverin--and set to work on creating a universal face book for Harvard students. Wildly popular on campus, Zuckerberg quickly opened up thefacebook.com to other universities (Stanford, Columbia and Yale joined first in March) and by June, the whole operation had moved to California.Not to be contained to higher education, Facebook (which dropped its the and capitalized the F in August 2005) expanded to add high school networks later in 2005 and opened its doors to the rest of the world in September 2006. With a healthy buzz already brewing, a cadre of MySpacers confined by their cluttered, ad-laden pages swiftly jumped ship and by years end some 12 million registered users were already intermingling.Light on customization but just as heavy on content, Facebooks clean, uniform pages, instant status updates and orderly Wall of messages forever altered the landscape, and Zuckerbergs vision of a mature, sophisticated system of correspondence may have saved social networking from eventually succumbing to the next hip, young fad. Members onlyWhile Facebook and MySpace were dueling for supremacy, other sites eager for a piece of the expanding pie were left to fight over the scraps with an array of professional alliances, specialized clubs, cultural leagues and plain old copycats.In 2004, Ezer Ratchaga launched his holistic personal networked called FriendCircles as a place to organize around hobbies, interests or career goals, and a few months later, Tagged.com opened a site targeted to teens. By 2005, webcam junkies had Stickam and news hounds were flocking to Buzznet to share Hurricane Katrina survival stories--everyone from nightclubbers to artists were given a social niche on the Web.One notable exception to the field of wannabes was Bebo, a personalized blogging site launched in early 2005. An acronym for Blog Early, Blog Often, Bebo founder Michael Birch, found far greater enthusiasm for his site in his homeland of England than the United States. With an assertive overseas push (Bebo was originally based in San Francisco where his wife and Bebo co-founder, Xochi, grew up), Birch was able to hang with the big boys--and give the ubiquitous MySpace Music a run for its money--leading to an $850 million AOL buyout in March 2008.Not one to sit on the sidelines, Google got in on the act, too. After its failed Friendster bid, the search-engine giant in 2004 unveiled Orkut (named after its creator, Orkut Bykkkten), an invitation-only social network that encouraged friends to create mini groups to share related videos, pics and ideas. Bogged down by MySpace and Facebook, the network lagged in the U.S. but caught fire in Brazil and India.Scrappy, smaller sites such as Yelp and Ning carved out their own niches, and around the world, a bevy of social networks united users while dividing and conquering the Internet, including some fairly popular ones--Skyrock (France, Belgium, Switzerland); Multiply (Philippines); Mixi (Japan); Qzone (China); Badoo (2006) (Europe); Nasza-klasa (Poland); Odnoklassniki (Russia); VKontakte (Russia)--but there was still a missing piece needed to bring all the pieces together.That connection came in the form of small blue bird named Twitter, an instant-message, micro-blogging system that tore down the unintentional barriers created by competing social networking sites. Founded in 2006, Twitter was only marginally successful until the 2007 South by Southwest festival in Austin, Texas, when usage exploded, tripling to some 60,000 Tweets a day and officially entering the mainstream. A brilliant network where friends were made effortlessly and without bias, and a 140-character limit ensured dialogue moved swiftly along, Twitter gave a voice to all those faces out there.Soon, users all around the world--regardless of their site of choice--were divulging their deepest thoughts, fears and desires in rapid exchanges to as few as one and as many as one million people at once. Finally, widgets added connectivity to MySpace, Facebook and virtually every other social-networking Web site, and tied everything--and everyone--together.What started as a note system with a dozen or so users has evolved into a global phenomenon with hundreds of millions of users reaching nearly every corner in the world. From elaborate, graphics-intensive personal pages to brief, brisk bulletins, the explosion of social networking sites has succeeded in bringing people closer together as the restless masses stand on the mountaintop, waiting for the next revolution.Where will it start? Who knows. But we'll probably read about it on Twitter first.
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Wall Street Breakfast: Must-Know News
Top AIG execs threaten to quit over pay. Five top AIG (AIG) executives are reportedly ready to quit over worries about the government clipping their pay packages. Pay czar Kenneth Feinberg has already reduced compensation for AIG's top 13 employees by 57%, and is currently working on the next 75; sources say some Fed and Treasury officials have urged Feinberg to ease up. The uprising was apparently initiated by AIG general counsel, Anastasia Kelly; she's joined by the heads of one of AIG's international life-insurance businesses, its financial-services division, its international property-and-casualty-insurance businesses, and its U.S. property-casualty business. A key point of contention is the so-called golden-parachute severance payments executives are currently eligible for. Citi, Treasury at odds over TARP exit. Citigroup (C) may have to wait before shaking itself free of the Treasury's 34% stake, because the Treasury is concerned such a sale might weaken the bank's cause with investors should it need to raise capital. Citi is trying to convince the government to allow it to repay its remaining $20B in TARP loans within the next ten days, short of which it will be forced to wait until mid-January, but the Treasury wants to wait until the bank and regulators agree on a broader plan to repay all obligations under that plan, including government guarantees on $301B of devalued securities and other assets. Treasury sees smaller TARP loss. The Treasury has done such a good job in stabilizing the U.S. financial system that the projected long-term cost of the TARP is now at least $200B less than previous estimates, according to a Department official. The administration had estimated that taxpayers would have to shoulder $341B in costs under the program, but higher-than-expected returns on the Treasury's investments to stabilize the system have more than halved that number. In a speech Tuesday, President Obama is expected to talk about using leftover TARP funds for job creation, although he may hit resistance from Republicans who want to use such funds for deficit reduction. Publishers look to close digital ranks. In an effort to exert greater control over their financial futures, five print publishers have teamed up in a new digital venture, sources say. The venture, to be announced this week, will create a digital store and common technology and advertising standards to sell titles on electronic readers. The venture is spearheaded by Time Inc. (TWX) and includes News Corp. (NWS), Conde Nast Publications, Hearst and Meredith (MDP). The partners are all paying an initial ante, but are as yet unclear on a number of key issues. "Now that this transition is underway, the big thing is to figure out what is going to work for consumers, how you make the best offerings and get them out there, and underneath that how it is delivered," one executive said. BIS sounds risk alarm. The Bank for International Settlements stated in its latest quarterly report, published over the weekend, that banks may once again be lured to take big risks because of rock-bottom interest rates. The study found evidence of a significant link between an extended period of low interest rates prior to the financial crisis and banks' risk-taking, which it said could consequently fuel new asset price bubbles. BIS also noted the volume of international debt securities issued in Q3 fell 16% from Q2, to $1.998T while net issuance almost halved to $475B. Total turnover in exchange-traded derivatives was stable at $425T, which is about 60% of the volume seen before the financial crisis. BHP, Rio ink iron ore JV. Mining giants BHP Billiton (BHP) and Rio Tinto (RTP) signed an agreement over the weekend to combine their iron ore operations in Western Australia, a deal they say will save them $10B a year. But the deal faces significant regulatory hurdles due to concerns about excessive dominance of the iron ore market. Originally outlined in June, the deal was formalized Saturday; the companies anticipate completion of the deal in the second half of 2010. The statement made no mention of any payment from BHP to Rio Tinto, which has the larger iron ore production, but a figure of $5.8B had been proposed in earlier negotiations. Under the plan, each company would own 50% in their combined Western Australian iron ore assets, but would continue to market the ore separately. Chevron makes 'clean' push in Australia. Chevron (CVX) entered an agreement worth $82B to supply liquid natural gas to Tokyo Electric Power Co. out of Australia, where its Wheatstone venture is based. Chevron and competitors are investing heavily in Australia as they angle for a larger slice of the LNG market. The deal will help vault Chevron up 14 notches in 2016 to the No. 6 spot in global rankings. Payback time for U.K. banks? While U.S. politicians grouse about bank ingratitude, the U.K. government is contemplating more direct action: making banks pay taxes that could raise anywhere between several hundred million pounds over one year to more than 1B a year for 2-3 years in taxes. The measure, which could be announced as soon as Wednesday, would apply to U.K. banks such as Barclays (BCS), HSBC (HBC), Royal Bank of Scotland (RBS), as well as the British arms of overseas firms, such as Goldman Sachs (GS), JPMorgan (JPM) and Deutsche Bank (DB). However, timing of such a move remains uncertain amid "formidable practical obstacles." Intel cans Larrabee. Intel (INTC) said it's yanking plans to sell a consumer version of its much-touted, much-delayed multi-core graphics chip - Larrabee - which was meant to establish a new area of competition with Nvidia (NVDA) and AMD (AMD). Intel said it had decided not to offer the chip at all as a conventional product, though it will make it available as a platform to help programmers design new applications that can carry out computing tasks in a parallel fashion. "The silicon and software development are behind where we hoped to be at this point in the project," an Intel spokesman said. Intel said it will provide an update about future versions some time next year. Amazon denies store report. Amazon.com (AMZN) said it has no plans to open walk-in stores in London or anywhere else, contrary to a report over the weekend that said the internet e-commerce giant was looking to cash in on so-called "click and collect" shopping. Kuwait turns profit on Citi. The Kuwait Investment Authority, the Gulf country's sovereign wealth fund, said it sold a $4.1B stake in Citigroup (C) and that it made a $1.1B profit (37.7% return) in the process. The authority converted its preferred shares to common shares after working out a deal with the bank, selling all of the shares for $4.1B. The KIA invested $3B in Citi and another $2B in Merrill in 2008 as Wall Street lenders turned to outside investors to replenish capital hit by subprime-mortgage losses. SWFs have been unwinding their investments in Western banks after stocking up on big names when share prices hit rock bottom during the global financial crisis. Hershey gets sweet with Nestle. Hershey Foods (HSY) has been in contact with Switzerland-based Nestle (NSRGY.PK) about teaming up to buy Britain's Cadbury in a counter-move to Kraft's hostile offer, sources say. As expected, Kraft launched a formal unsolicited 10.2B ($17B) bid on Friday. Hershey said in a Nov. 18 regulatory filing it was “reviewing its options.” In a statement this morning, Cadbury said it will formally respond to the Kraft offer on December 14. GM cedes JV control to SAIC... In a trade-off it hopes will give it a higher stake in another China JV, General Motors said it has agreed to let China's SAIC take control of their JV, where SAIC will now have a 51% stake. GM said the transfer was necessary to help SAIC consolidate earnings from the Shanghai GM joint venture, which local financial regulations barred as a 50/50 partnership. In return, GM hopes to get a higher stake in the producer of Wuling micro minivans, a JV owned by GM, SAIC and the government of Guangxi province in southwestern China. GM, which has a 34% stake in the venture, is planning to expand in Hong Kong and then India early next year. ...and hires recruiter for CEO job. As GM scrambles to find new growth models, it has hired a recruiter, Spenser Stuart, with orders to find a permanent CEO who has extensive global, manufacturing and turnaround experience. Importantly, the automaker is hoping to attract someone with operating experience in Asia because "next year, GM expects to sell more cars in Asia than North America," a source said. Sources said GM also wants someone who can work well with U.S. government agencies and prepare the now private manufacturer for an IPO. Early Monday, GM appointed Tim Lee as president of GM International, succeeding Nick Reilly - thought to be the beginning of a major overhaul to the carmaker's ranks. Apple adds Lala to iTunes list. Apple (AAPL) confirmed it bought Lala Media, the fast-streaming online music company that lets users pay just $0.10 to access music. While terms were undisclosed, one report said Apple got away with a big discount. The technology gives users permanent access to web songs that can be streamed but cannot be downloaded to a user's computer hard drive or to portable players like iPods. The three-year-old company is developing an iPhone application that would greatly expand the service's reach, by making Lala web songs available on the go via the phone's wireless internet connection. Geithner: Goldman would have failed. Treasury Secretary Timothy Geithner said Goldman Sachs (GS) executives were wrong when they claimed in an interview the firm would have survived without government help at the peak of the crisis. "None of them would have survived," Geithner said over the weekend. He also directed more barbs at Wall Street's compensation culture, saying: "We have to end that era of irresponsibly high bonuses." Today's MarketsOverseas markets were mixed Monday. Stock futures have moved lower overnight, while Treasurys are poised to carry significant gains into the week's first session.
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How to Use Your Mac and Your iPhone to Completely Automate Your Home
Modernize your home and simplify your life with these painless products and strategies that automate your house, apartment, castle, or whatever keeps the roof over your head. Illustrations by Hanoch Piven Still using jagged little strips of metal to unlock your front door? Paying someone to feed your pets while you’re away for a weekend? Then it’s time to truly enter the second decade of the 21st century. Setting up home-control automation that runs from your Mac and iPhone is surprisingly simple, and the results can feel like magic. We kick things off with a primer that takes the hassle and jargon out of home control, then dive straight into showing you the best possibilities for managing your home’s lights, entertainment, security, and loads more. Just wait until you check out the washing machine that tweets when it’s finished a load…What Exactly is Home Control?You might’ve also heard it called “home automation,” and you might be a bit reluctant to slog through all the jargon and devices that the phrase brings to mind. But really, it’s simple. There are two types of home-control systems: the fantasy technology you see at Disney’s Tomorrowland and the gear you can actually deploy in the real world. Unfortunately, manufacturers of home-control systems have overpromised and under-delivered for so many years that many people have just stopped listening.Good news: It’s safe to start listening again. There’s still a yawning chasm between fantasy and reality--we’re a long way from having a robot butler greet us with our smoking jacket and a perfectly muddled mojito as we step out of our flying car. But we can manage nearly every system in and around the home: lighting, heating and cooling, home theater, security, even irrigation.Why bother? Home-control systems are appealing for many reasons: They deliver unparalleled convenience and efficiency, they add value to your home, they strengthen your home’s physical security, and they help reduce your impact on the environment. With the right tools, you can monitor and manage all your home systems whether you’re on the couch, in the car, or at work. We’ll discuss those specific applications in the following pages, but first, it’s important to begin with an overview of the basics. Which home-control standard do you want to use? There are four major ecosystems to choose from, and naturally, they’re mutually exclusive (at least for the time being)…X10/InsteonIntroduced by Pico Electronics way back in the 1970s, X10 is the granddaddy of home-control technology. The passage of time and the long absence of significant competition helped X10 amass the largest installed base of any home-control technology, despite a reputation for being as reliable as a British sports car from the same era.X10 devices use a primitive form of power-line networking, meaning commands travel over your home’s existing electrical wiring. The X10 protocol doesn’t include a feedback loop, so there’s no way for devices sending commands to know whether those commands have been received and executed. The technology is also highly susceptible to electrical noise, which X10 devices sometimes interpret as valid commands. This can result not only in false negatives (a light or an appliance doesn’t turn on or off in response to a command), but also false positives (turning on or off in the absence of a command).Insteon, developed by SmartLabs (a major distributor of X10 products) in 2001, builds and improves on the X10 protocol without rendering X10 devices obsolete. Like the ZigBee and Z-Wave standards we’ll discuss next, every node on the Insteon network is capable of receiving information and passing on the command to the next node if it’s not the intended target. Unlike those two standards, Insteon devices use both radio frequencies (RF) and power lines to communicate (this retains X10 compatibility and reaches devices where radio waves can’t penetrate).SmartLabs' Insteon uses radio frequencies and power lines to communicate.SmartLabs maintains its own online retail operation and sells directly to the do-it-yourself market. The Insteon ecosystem is extremely robust in terms of the systems it can manage. You can buy plug-in and in-the-wall lighting controls; thermostats; motion, door, and window sensors; irrigation controllers; and more. Third-party support is very good in some respects and surprisingly limited in others. For instance, you’ll find a number of Mac software controllers (see below), but none of the major lighting-control manufacturers in the U.S. (Cooper Wiring Devices, GE, Intermatic, or Leviton) build Insteon-compatible switches, dimmers, or receptacles.Insteon’s failure to gain support from other manufacturers will likely limit its long-term prospects. The development of a bridge (a device capable of translating commands from one standard to another) would save Insteon customers from getting hosed if the market ultimately embraces one of the other competing standards. ZigBeeZigBee is the only home-control specification based on an IEEE standard (IEEE is the leading standards organization for device manufacturers; you’ve likely heard of its 802.11 standard for wireless networking). And you might think ZigBee’s designation as an international standard would automatically render it the marketplace winner (after all, how many wireless-networking products buck 802.11?), but far fewer ZigBee products are available to the do-it-yourself crowd than either Insteon or Z-Wave.Part of the problem is that early versions of the ZigBee standard didn’t guarantee interoperability; companies were allowed to develop products that worked only within their own proprietary systems. ZigBee does have a strong presence in the energy-consumption and -management market, where it’s embedded in thermostats inside the home and in utility smart meters outside it. One of the largest home-control manufacturers, Control4, builds complete ZigBee-based systems; but you must acquire it from a contractor who will handle the installation (charging you handsomely and limiting your expansion options in the process).Few ZigBee devices are sold at retail today, and none of the Mac home-control software programs we looked at are capable of operating a ZigBee network yet. Still, ZigBee’s status as an IEEE standard carries a lot of weight, and that could make it a major contender down the road.Z-WaveZ-Wave is a proprietary wireless home-control standard developed by Zensys, and it enjoys robust support from more third-party manufacturers than either Insteon or ZigBee. Cooper, GE, Intermatic, and Leviton offer comprehensive Z-Wave lighting controls; Wayne-Dalton builds garage-door openers; Schlage manufactures door locks; and so on.Control your home's temperature with this Z-Wave thermostat from Trane. You can buy nearly all these products at retail, but Wayne-Dalton’s HousePort and TrickleStar’s Z-Wave widget are the only Mac-compatible home-control programs we’re aware of, and they’re both very rudimentary. But Z-Wave has gathered more industry-wide momentum than either Insteon or ZigBee (including a critical endorsement from Intel), which could help it become the eventual home-control standard. Hybrid ZigBee/Z-Wave systems are also an option--Control4, for instance, introduced a bridge device late last year that enables its ZigBee system to control Z-Wave devices. Handy.The Future Awaits… Even more good news: There’s no need to make a decision just yet. In the next few pages, we’ll outline the most useful automation options for everything from automatically turning on your lights to amazingly simple webcam security to streaming video servers. Once you decide what’s right for your home, refer back to this primer to decide which hardware standard and corresponding software is right for you. Then it’s time to get your DIY on… even if doing it yourself amounts to Googling “professional home automation installers.”Home-Control SoftwareYou'll need to manage your entire home-control system by running software on your Mac that "talks" to your various interfaced devices. The major software players are:Indigo: Perceptive Automation’s Indigo Lite ($89.95) is compatible with Insteon and X10 modules, but not ZigBee or Z-Wave. It includes both a built-in web server and client/server architecture, so you can control the entire system locally or remotely. You can also schedule events (turn on the outside lights at dusk), set up triggers (send an email message if a door sensor is activated; monitor and program your Insteon thermostat), and more. Indigo Pro ($179.95) adds a host of advanced features, such as voice-command response. You can also control Indigo with your iPhone using the free app Indigo Touch.Indigo's software enables you to control your system remotely.XTension: Sand Hill Engineering’s XTension ($149.95) is compatible with X10 devices, several RF and niche interfaces, and certain wireless weather-monitoring products manufactured by Oregon Scientific. A technically savvy audience--even home automation contractors--will find a lot to like, but the software doesn’t support ZigBee, Z-Wave, or Insteon modules, which is… odd.Thinking Home: Always Thinking’s Thinking Home ($79) works with X10 and Insteon modules, but not ZigBee or Z-Wave devices. It’s not as sophisticated as Indigo, but it covers the basics and boasts an easy-to-learn user interface. Next Page: Lights, Power, Heating, Actions! >>Utilities: Lights, Power, Heating, Actions!Play puppetmaster with your home's utilities from your Mac and iPhone, and reap the benefits of convenience and efficiency.Light Your WayLighting automation puts the “utilitarian” into home-utility automation. These upgrades are flashy only on a literal level; you probably won’t go bragging to coworkers about how your House of the Future can turn its lights on and off. But these techniques form the foundation of home automation and make a great place to kick things off.For starters, try teaching your house to turn on the lights as you pull into the driveway. In addition to a basic home-control setup with Mac software and a hardware interface, you can add driveway-sensor modules ($169.99) or an automation-savvy garage-door retrofit ($71.99). Or just get a new garage-door opener ($189) with a Z-Wave interface to both control and monitor the door. With your Mac software, you can then build an if-then script that ties into your home lighting. If a car pulls into the driveway, activate the exterior house lighting. If you open the garage door, turn on the entryway lights inside.XTension lets you graphically assign icons that match your home setting.More sensors can create additional options. An outdoor motion sensor with floodlights ($54.88) can turn on when someone passes by. Your Mac could then log the time it happened and snap a webcam picture of your yard.You can take the process indoors, activating room lighting based on a motion sensor ($34.99). Full indoor automation can be harder since you might want to lounge around, but sitting without moving would turn the lights off. Still, it can work well in certain situations, such as lighting up a party as it moves around into different rooms.Control Utilities and Devices Over the InternetMost home automation software can connect online, letting you control devices from anywhere. Cancel your sprinkler schedule on a rainy day, open the shades in your teenager’s room at noon, adjust your thermostat when away, and otherwise tap into your setup over the Internet. Indigo and Thinking Home (see above for details) enable a web server within the automation interface. XTension uses an optional plug-in, X2Web ($39.95), to connect online.Indigo Touch, a free iPhone app, lets you change home-heating conditions from wherever you are. You could also remotely connect to an online Mac and control the whole computer as if you were sitting at home, directly using the automation software of your choice. Several remote-access tools enable this approach, including GoToMyPC ($19.95/month) and LogMeIn Free (free). LogMeIn even offers an iPhone version of the app, LogMeIn Ignition ($29.99). Or if you’re on MobileMe ($99/year), the Back to My Mac feature does the same thing. These tools might also be easier alternatives to setting up online components in the automation software because you shouldn’t have to make special network configurations on your home router to allow access.Open-ended plugs, such as the EZ102X4 (top) and the ApplianceLink V2, let you connect any device to your automation network.And many iPhone apps offer another way to connect to your hardware over the Internet. Indigo Touch (free) is a companion for that desktop software. Otherwise, just search for “X10,” “Insteon,” or “home automation” to browse the App Store. Be sure to read the requirements closely--some interface with software on your home Mac, while others talk directly to certain Internet-enabled automation controllers.Create Your Own Animal HouseYou can more easily take good care of your pets in an automated house, especially if you’re coming home late or taking a short vacation. Some hardware ties directly into your setup, while you might have to creatively hack other devices.For occasional meals, consider an internet-connected device, such as the Petwatch feeder ($269.99). The hardware includes a webcam so you can view your pet wherever you are.With this Petwatch feeder, you can watch and feed your pets remotely.If you’re technically minded--or you can draft someone who is--get creative with other home automation devices for great pet combinations. Some pet doors unlock when Fido or Whiskers get close; their collars hold a key. For one option, try a Solo Pet Door ($395 and up). This device retracts when it senses a magnet that your pet wears.We couldn’t track down any pet doors that talk to home automation systems, but you can combine a door like this with your own sensors. Add a proximity sensor and webcam to track and record your pet movement; you could even have your Mac email or SMS a picture. If you add a power relay to the mix, such as the EZIO2X4 ($134.99) or Insteon ApplianceLink V2 ($34.99), you can lock the door remotely. Maybe you want to give your pets access depending on the time of day. Or you could lock the door after a cat returns from a night of carousing. (There’re loads of creative options out there; for a few more, see Top Ten Wonders of the Home Automation World below.)Use Home Control To Live GreenerA home-control system can also help you to reduce your carbon footprint and use previous resources more efficiently. Here are six ways to get started:>> Rather than leaving your exterior lights on all day so your home isn’t dark when you get home, retrofit your light switches and use home-control software to turn them on when the sun sets.>> Conserve water by installing programmable sprinkler controllers that can adjust their irrigation schedules in response to weather conditions and forecasts.>> Create a vacation “scene” that turns your HVAC system off while you’re away. The system can also turn various lights on in the evening and off at night, using a randomized pattern that will fool prospective thieves into thinking the house is occupied.>> Install a programmable thermostat that turns your climate-control system off 30 minutes before you leave and 30 minutes before you’re scheduled to return home. Use your iPhone to remotely update the routine should your plans change.>> Reduce your electrical consumption and improve your media-room ambience by installing a dimmer that brings down the lights when you press Play on your remote control.>> Add an Insteon-enabled 220-volt control to your current high-voltage electrical appliances, such as a water heater (a notorious energy-waster), and conserve money and power by shutting them down during the day or when you’re away from home for extended periods.Next Page: Become Master of All You Survey >> Security: Become Master of All You SurveyYou install software updates to keep your Mac and iPhone secure. Let them return the favor by keeping tabs on your home while you're away.Keep an iSight on ThingsMac has a built-in iSight--or almost any QuickTime-compatible camera attached--you’re one step away from a surveillance system. All you need is software like Security Spy ($50) or EvoCam ($30), and you’re in the counterespionage business. Each application records pictures and video to your Mac continuously, according to schedules you define, or when it detects motion in a camera’s field of view. Just launch the app, point your iSight where you expect snoops to sneak (like a doorway or maybe the desk holding your plans for world domination), then leave your computer running. When the camera picks up movement, the software can start recording, email you a photo of the suspicious event, or alert the Mac running your home automation system to trigger a larger security plan. If you’re more curious than concerned, both applications can upload pictures to an FTP site and serve video to the internet, letting you view your camera’s feed from a browser. You can even log in remotely and tweak your security camera’s settings.EvoCam's surveillance system indulges your counterespionage fantasies.An iSight or webcam is fine for a small room, but Security Spy and EvoCam can monitor and control multiple video sources simultaneously. If your need to know extends to several rooms or even outdoors, you’ll want to weave a larger web of spies... er, cameras.Expand Your HorizonsStepping up from a single-camera system doesn’t have to be difficult. The same software and principles apply; you’ll just add additional cameras, video servers, or network cameras to view and control it all from a central Mac. Video servers send footage from multiple cameras to your wired or wireless network. If your cameras are digital, other Macs running surveillance software can do the job of the server. But if you’re using analog cameras like Q-See’s night-vision-capable QSC48030 ($199.99), you’ll want a dedicated server like Axis’ 240Q ($499.99) to digitize the signals so they can be seen by your Mac.Monitor from afar with Axis's 214 PTZ camera.Network cameras have built-in web servers that can join networks without the need for extra gear. A wide range of network cameras is available for every budget, from Panasonic’s webcam-style, 802.11g-enabled BL-C131A ($299.95) to the Axis 214 PTZ ($1299.00), which wouldn’t look out of place in a villain’s lair (or on a department-store ceiling). These and many other network cameras also sport lenses that can remotely pan, tilt, or zoom in to give you a better view of the action.There are endless varieties of hardware to consider, but the good news is there’s plenty of gear out there to fit your needs. Both Security Spy and EvoCam’s sites offer lists of compatible equipment that make good starting points for building a home-surveillance network.Sensor YourselfHandy as video surveillance is, it probably won’t be a good fit for every room in your house. For places where cameras are impractical, obtrusive, or just plain weird, Insteon motion sensors and magnetic door switches can keep tabs on who goes there when you’ve gone out.SmartLabs Design’s battery-powered Wireless Motion/Occupancy Sensor ($34.99) installs almost anywhere to detect motion in a 110-degree arc at a range of 40 feet. When an intruder is discovered, the Mac running your Insteon system can send you an email, turn on lights, or release the hounds. Because these motion detectors work by sensing heat, you’ll want to install yours in places without extreme fluctuations in temperature. That includes areas near heating grates, fireplaces, or large windows that get lots of sun.SmartLabs' wireless motion sensor alerts you to intruders.If motion detectors won’t do the job, guard your perimeter with SmartLabs’ TriggerLinc Wireless Open/Close Sensor ($34.99). Half the sensor attaches to a door, and the other half installs beside it on the door frame. Opening the door breaks the magnetic contact between the halves, letting your network know a would-be 007 has entered the room or found the hidden compartment in your desk. Since the TriggerLinc is compact and wireless, it installs on just about anything that opens: windows, drawers, server closets, you name it. You’ll never wonder if the babysitter has raided your liquor cabinet again.Unlock the PossibilitiesSecurity isn’t just about keeping people out. It’s also about letting the right people in, and the internet can help. The web lets you access secure information... why can’t it open your front door? For a monthly fee of $12.99, that’s just what Schlage’s LiNK Starter Kit ($299) can do. Its lever lock (also available in a dead bolt model) replaces the one already installed in your door, and ten buttons above its traditional keyhole allow entry with a programmable access code. But the lock also sports a battery-powered transmitter that talks to the included Bridge, a base station that connects to the internet and creates a wireless network for other LiNK devices, like the lamp controller that rounds out the kit.Schlange's LiNK Starter Kit remotely opens your front door.Once you’re a LiNK subscriber, you can log in to Schlage’s site and control your lock from anywhere. Need a friend to check your house while you’re away? No problem--remotely program your lock with a custom access code. The in-laws arrived while you’re stuck at work? Just open the door for ’em (or don’t, we won’t judge). You can even use the free Schlage LiNK iPhone app to manage access while you’re on the go. If you’re worried about being locked out when the internet is down, Schlage claims its locks’ batteries will last up to three years... but keeping a spare key on hand never hurt anybody.Put Professional Security a Touch AwaySchlage’s LiNK is one of several commercial packages that combine home security, automation, and the iPhone to monitor and control your home without fuss. Even if you’re not the DIY type, you can bring your peace of mind into this century.Commercial security companies offer plans and products designed to work together seamlessly. Products can include motion detectors, cameras, and other sensors run from a central control panel on a wall instead of your computer. While the basic idea is the same as a home-built system--devices monitor your house and warn you in case of trouble--commercial systems can offer integrated fire detection and alerts to personnel who will contact the authorities in an emergency. Plans cost anywhere from $30 to $50 a month (plus installation fees), but their features and simplicity may be worth the expense.For a monthly fee, commercial security companies can provide more than peace of mind.Alarm.com, CPI Security Systems, and Platinum Protection each offer free applications that let iPhone users control their security systems. These apps let you arm and disarm your system, monitor camera feeds, receive notifications when sensors detect something, and view a history of recent security events. Want to know what time your teenager really got home from his friend’s house? There’s an app for that.Next Page: Just Stream It >> Entertainment: Just Stream ItYour entertainment wants to be set free... and you want it to be too. These four easy setups will help you get the most out of your music, movies, and TV.Enjoy Your Music EverywhereSetting up a streaming audio system for the first time is like that day when you switched to a DVR to watch TV--you’ll wonder how you ever enjoyed your tunes without it. Once all your music’s on a home network, you can listen to your songs from any computer or standalone music-playing device. Whether you’re unwinding, waking up in the morning, or broadcasting beats throughout your house for a party, you don’t have to fuss with issues like which Mac has which MP3 or where that blasted CD got to--all your music is where you want it to be.Mac fans typically choose between three major music-streaming systems: Apple AirPort Express ($99), Sonos hardware ($349 and up), or Logitech Squeezebox devices ($149 and up). Each system has its own infrastructure, including ways to control everything from an iPhone or iPod touch. And each one has benefits and drawbacks in certain situations.Apple's AirPort Express wirelessly connects your Mac to your stereo.As expected, Apple’s AirPort Express is the best match for iTunes… and little else. These little boxes connect to a small set of computer-style speakers or into a home stereo, so factor those costs into your budgeting. You’ll need one AirPort Express and speaker set for each room you want to play music in. An Apple TV ($229) can also do double duty, streaming music even when your TV is off.While AirPort Express scores with simplicity, there are a few drawbacks. One or more Macs will have to be left on to play music, and extra features that the other systems pack--such as alarms and online services beyond basic streaming radio--don’t work without additional software.Next up: the Logitech Squeezebox devices. They work well once set up, but they feel more complicated than the other choices. Their server software runs off one of your Macs, telling Squeezeboxes where to find your songs. Like the AirPort Express, you’ll have to have a Mac running to access home audio.Sonos Bundle--along with the Sonos app--turns your iPhone or iPod into a remote control.Unlike Apple’s option, Squeezebox devices can play back more internet choices, including Rhapsody and Napster subscriptions. And you won’t have to keep a Mac running when playing online sources--woot! Logitech also offers several Squeezebox devices, from a clock radio–style box with a built-in speaker to hardware that connects to an entertainment center. Consider the Squeezebox if you can sacrifice some of the AirPort Express’s simplicity for better internet features.Last but not least, Sonos rules high-end audio streaming because of the care put into its hardware and interfaces. And audiophiles can really hear the difference between a Sonos device and its competitors. Like Logitech, Sonos hardware comes in a few packages, some designed to attach to a home stereo, one with built-in speakers, and some that connect to speakers. Sonos devices lack an interface beyond volume/mute buttons, so you’ll typically control everything with the excellent standalone remote ($349) or iPhone app. Sonos’ internet streaming choices match the Squeezebox, but unlike either competitor, Sonos hardware can play music directly from a network hard drive, so you don’t need to keep a Mac running. But Sonos might K.O. your budget as much as it does its competitors. You can pick and choose which gear you want, but plan for roughly $500 or more per room. Yowza.Share a Single iTunes Library with Multiple MacsYou’re probably thinking, wait… iTunes works well to share libraries and stream audio over a network. And if you’re happy with that method, there’s no harm in sticking with it. But iTunes sharing doesn’t let you sync music from any system to an iPod or compile ripped songs in a single location--and again, your main Mac needs to be left on for it to work. Fortunately, you can show your music who’s boss and let all of your Macs access a consolidated iTunes library.Before you begin, consider using TuneRanger ($29.99) to sync different libraries together into one master audio source. Then transfer that combined music folder to a network server or always-on Mac that everyone can reach. Launch iTunes on one Mac while holding Option, pick Choose Library, and navigate to the library file on your network.This time, the dreaded can't-find-library box is a good thing.On the other Macs, hold Option when launching iTunes, but make a new library on the local hard drive when prompted. On those systems, change the media folder location in the advanced iTunes preferences to point to the music shared on the network. Within the advanced iTunes preferences on all Macs, be sure to enable the checkbox to copy files to the media folder when adding to the library.Now install Syncopation ($24.95) on each Mac to keep the iTunes libraries synced. Check the setup documents for details, but be sure to click the option to Import Tracks Without Copying in the Advanced preferences.Breathe Music into Old Macs and iPodsIf you’ve got an old Mac sitting around, you can dust it off and turn it into an audio client. Translation: You’ll be able to control it from another computer, pushing songs over your network as if it were Squeezebox or AirPort Express hardware.You’ll never have to turn on--or even connect--a display, either. Try Airfoil on your host computer ($25) with Airfoil Speakers for Mac (free) on the old-Mac-turned-audio-client. You can even duplicate results on an iPhone or iPod touch with Airfoil Speakers for Touch (free).Stream MP3s and internet radio to your stereo with Softsqueeze.Even if you have no Squeezebox hardware, you can install the basic Squeezebox Server (free) software on your main computer to stream audio. Then add Softsqueeze (free) to your old networked Mac, and the Squeezebox software will treat it just like standalone hardware from Logitech.Get Started on Streaming VideoYes, your screen-viewing time can get better. Instead of sharing videos directly between various Macs, you can streamline your consumption of movies and TV by creating a central server that holds all your video. With this method, you’ll leave the server running instead of having to keep various Macs online. You’ll be better organized too.Don’t overthink the biggest piece of hardware in this process: the server. Just repurpose nearly any Mac sitting around. Even a five-year-old laptop or iMac will do the trick. Or for bonus points, turn an old PC into a Linux server.Once you scrounge up an old computer, consider its drives. For a moderate video collection, you’ll want about 60GB of free space. If you gobble down video like Wimpy takes to cheeseburgers, plan for 120GB or even more. Also aim for a speedy drive interface; essentially, just avoid connecting over original USB, which you might find on old systems. And be sure you’ve got a DVD drive if you’re going to transfer over movies. Check out this article for tips.Your network makes up the other biggest factor for streaming success. 100BASE-T is a must; if you have any old 10BASE-T devices between the server and clients, video will stutter. Ideally, consider gigabit (1000BASE-T) devices. If you must have a wireless client or server, get at least 802.11g or 802.11n Wi-Fi, and keep 802.11b devices--the original AirPort standard--off the network. In many situations, old devices slow down the network to maintain compatibility. That said, more than 10 years after Apple introduced AirPort, we still prefer an all-wired connection because it’s more reliable and faster than most wireless networks.Once you connect everything, you’ll just store all video files on the server and play them from client Macs or other devices. Again, iTunes provides the simplest way to manage everything: Run it on both systems, and use shared libraries to stream the video.iTunes can also help you get started with video streaming.But several other software options deliver fine alternatives. Bundled with OS X, Front Row’s big interface is ideal for watching shows across the room. Plex (free) and Boxee (free) are also built around long-distance interfaces and add more internet features than Apple’s software. Check out this article for even more tips, including additional TV-connected devices that can stream shows and directions to hack an AppleTV to run Boxee. Have fun!Next Page: Top Ten Wonders of the Home Automation World >> Top Ten Wonders of the Home Automation WorldYou've seen home automation by the book--now check out home automation off the hook. These labors of love take the good life to a level even the Jetsons never imagined.10. Grass Has a New Enemy We’re all about using the right tool to make a job easier, especially when that job is mowing the lawn in the summer heat. Terry Creer must agree--his remote-controlled lawn mower grafts an electric lawn mower to the wheels of a motorized wheelchair operated with a hobby-store radio controller. Swapping out the wheelchair’s original joystick for a wireless receiver keeps the mow-bot on the right path, and a fail-safe mechanism kills the motor if the controller’s signal is ever lost. Total cost for the project was less than $500. Sipping a cold drink while the lawn mower does all the work? Priceless.9. Tweets, Shoots, and LeavesWant to make the world a greener place? The Botanicalls tweeting plant monitor lets you do just that, one plant at a time. It’s a $99.99 kit that, along with a soldering iron and a little patience, lets you build a leaf-shaped moisture sensor that you stick into a plant’s soil. Once installed in your plant’s pot, the Botanicalls runs on AC power and plugs into your router’s Ethernet port to tweet when your leafy friend is feeling a little dry. With Botanicalls, you can embrace the DIY spirit, expand your techie know-how, and keep the flora in your life happy. What could be better?8. "Alcohol? Why, It's My Primary Function, Sir."When you sense the need to party, Jamie Price’s Bar2D2 is definitely the droid you’re looking for. Built in eight months from plywood, polycarbonate, and a used electric scooter, Bar2 works the room by remote control, serving drinks wherever he’s needed. A beer elevator brings cold bottles to any partygoer’s reach, and six onboard mixers let Bar2 make a galaxy of cocktails with the push of a button. And when the music starts, his sound-activated neon lights help make the party fully armed and operational. Maybe the Empire would have been cooler about that whole rebellion thing with a few of these guys scooting around the Death Star.7. Dryer Sheets and Washer TweetsGetting clothes dirty is fun, but washing ’em is a drag. Who needs the stress of waiting for the spin cycle to end? That’s why we wish we had Ryan Rose’s tweeting washing machine. The limit switch installed on its timer lets a simple microcontroller know when the washer is on or off. Red LEDs added to the washer’s controls show when it’s waiting for a wash to start, and a green LED shows when a wash has begun. When the load is finished, the washer tweets an update and displays an alert on a wall-mounted screen. It’s the coolest thing to happen to cleanliness since the bubble bath!6. The World Will Tweet a Path To Your Door You might think a wireless doorbell would be convenient enough, but not Roo Reynolds. His tweeting doorbell transforms an everyday wireless doorbell and ringer into an internet-connected chatterbox that gets two alerts for the price of one. The doorbell works like any other, but the ringer mechanism--squeezed into an Altoids can carefully cut to expose the ringer’s wireless antenna--sports a tiny circuit board that’s attached by a USB cable to a nearby computer. When visitors drop by and ring the doorbell, the computer tweets a simultaneous alert. Now that’s a curiously refreshing idea!5. Just the Cats, Ma'am When the neighborhood critters started sneaking through Ioan Ghip’s cat door for free meals, he took matters into his own hands, DIY-style, to make a tweeting cat door. First he outfitted the collars of his cats Gus and Penny with RFID (radio frequency identification) tags. Then he added an RFID reader and computer-controlled servo to the cat door so it would recognize only his two cats--no squirrels, raccoons, or bears allowed. Now when the spare laptop that monitors the cat door detects the lucky kitties nearby, it opens the door and tweets an update, while a webcam snaps a shot of them coming or going. Say cheese, guys!4. And We Thought Kernel Panics Were Scary Who says all automated homes have to be convenient and relaxing? Not automation contractor Jeffrey Lehman. Years ago he teamed with Halloween Park, a haunted-house attraction in Strinestown, Pennsylvania, to turn the spook show into a fully interactive, living videogame. Fiendishly clever use of motion detectors and other sensors guides victi… er, visitors through 26 rooms of creepy interactive puzzles that must be solved to escape the park… alive! Doors creak, lights flicker, and the terrifying Dead Fred leaps out of nowhere--all in response to people’s actions. Amazing what you can do with the right gear, ingenuity, and a healthy desire to scare the crap out of folks.3. "Incoming Romulan Ship! Fire Blu-ray!" Maybe it’s the big screen, but doesn’t it seem natural to mix Star Trek with a home theater? Yet that’s only half of what’s so cool about Gary Reighn’s entertainment command station, The Bridge. Sure, it’s packed with a starfleet of gear: a video projector, media players, and X10-powered lights--all under remote control. But what makes The Bridge so appealing isn’t its slick final-frontier technology--it’s that it looks like a fun place to hang out, just like the original Enterprise. Gary didn’t forget the home when he set out to build himself the ultimate home entertainment center on a budget, and it sure looks like he got his money’s worth.2. Now U Can Automate Cheezburger? The problem: feeding Mathew Newton’s cats Frankie and Elmo while he’s away. The solution: the internet-controlled cat feeder. A cereal dispenser stores the cat food, and a motor turns a flap to drop food into a splitter that sends the kibble to each kitty’s bowl in roughly the same portions. Here’s the trick: The feeder is controlled by the port status lights in an old Ethernet switch. Remote commands from a browser activate the lights, and their signals tell the feeder when to let Frankie and Elmo get their nom-nom on. Wow. No one can say these cats don’t have a well-trained owner.1. Push-Button Party Palace Each Wonder uses home automation in cool, creative ways, but the sheer excess of Zack Anderson’s MIDAS--ahem… that’s a Multifunction In-Dorm Automation System--deserves special notice. Made from a mini ITX motherboard and a battery of X10-controlled sensors, appliances, and displays, MIDAS transforms the room with the tap of a touchscreen (or even voice commands). There’s a work mode for studying and a relax mode for chilling, but when it’s time to party, swatting a big red panic button dims the lights, draws shades that serve as projection screens, and kicks out the techno jams. Sound-activated strobes, laser lights, and a fog machine do the rest. Surveillance cameras and a fingerprint-scanning security system keep everything safe while Zack’s away, but we have to wonder--why leave?