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Google Uncrates Chrome

John Paczkowski — Fri, 20 Nov 2009 18:00:19 +0000

[ See post to watch video ]

Chrome OS: "Turning On a PC Should Be Like Turning On Your TV"

John Paczkowski — Thu, 19 Nov 2009 19:59:51 +0000

Direct from Google headquarters, and liveblogged by John Paczkowski, Google’s Sundar Pichai, vice president of product management and Matthew Papakipos, engineering director for Google Chrome OS, explain some of the advantages of the operating system. This is the second of three segments:

Among Chrome OS’s advantages: Speed, simplicity and security. Every application will be a Web application. There will be no desktop apps. Chrome OS is essentially a browser with a few modifications. All data in the Chrome OS reside in the cloud. Pichai: “We want all of personal computing to work that way….If I lose my Chrome machine, I should be able to go out, buy a new [one] and re-create my previous computing experience easily.” Chrome OS will run completely inside the browser security model, he adds, noting that security is one of Google’s (GOOG) top priorities along with speed. “Turning on a PC should be like turning on your TV,” he says.

Chrome OS is very similar in appearance to the Chrome browser. “Chrome OS is Chrome,” says Pichai. Google made it look like a browser, because the browser is familiar.

And indeed, Chrome OS does look quite a bit like a browser. Multiple apps load into tabs, for example. It also features “Panels,” which Pichai describes as persistent lightweight windows. “All Chrome data resides in the cloud. Anything you put in the machine is immediately available to you anywhere.”

As netbooks become more advanced and battery life improves, they will evolve into entertainment devices, says Pichai, who notes that via Google Books, a netbook can become an e-reader, and through YouTube, a video device.

A quick demo of the user interface, which seems very simple and intuitive. “It just works,” says Pichai in an unintentional nod to Apple (AAPL). An interesting remark: Anyone who writes an app for the Web has written an app for Chrome, says Pichai, joking that Microsoft (MSFT) is already developing for it.

Speed, simplicity and security, says Pichai. We’re trying to make the computing experience delightful.

With that, Sundar Pichai hands the stage over to Engineering Director Matt Papakipos.

Papakipos, too, offers the “we want to make computing delightful” sound byte and notes once again that turning on the PC should be like turning on the TV.

Chrome OS eliminates the bootloader, auto-launching the browser. The OS also auto-updates itself, making sure that it’s always current with security patches, etc. Everything from the firmware to the kernel is secured with a cryptographic signature to ensure a secure boot. In the event malware is detected, the system repairs itself automatically.

The basic application security protocol for current operating systems allows apps the same privileges as the user. This presents obvious security issues. Whenever you install a new app, you’re taking a risk, says Papakipos. But Web applications like those that Chrome OS use are different. They are Web apps so they don’t have system-level privileges. Additionally, all apps run in secured sandboxes that are separate from one other and from the OS. Finally, all apps must be signed and verified before each use.

In terms of file systems, Chrome’s is locked down. It’s a read-only root-file system, obviously quite different from other operating systems. All user data are encrypted and synched to the cloud. Essentially, Google uses the PC for caching. Again, if you should lose your machine, you buy a new one, fire it up and it synchs with the cloud, restoring your previous computing experience.

Chrome: The End of Desktop Apps

John Paczkowski — Thu, 19 Nov 2009 19:02:23 +0000

Direct from Google headquarters and liveblogged by John Paczkowski, Google unveiled its Chrome OS. This is the first of three segments:

Google did not offer a beta of the new operating system today. Vice President of Product Management Sundar Pichai says Google is a year away from an official launch. The company, however, is making Chrome OS code available today.

According to Pichai, Google’s Chrome browser has some 40 million users one year after launch. He boasts about the browser’s speed, noting that it handles Javascript 39 times faster than Internet Explorer. There will be three more big Chrome announcements in the future: Chrome for Mac, Chrome for Linux and the debut of Chrome Extensions.

Google’s goal is to ensure that Web applications function as well as desktop apps, Pichai explains. The company is figuring out a way for Web apps to safely take advantage of the operating system in the same way that desktop apps do. A few examples: Graphics, video/audio applications, real-time communication, notification and local storage.

“By 2010 we expect to have all these things built into Chrome.”

The advent of Chrome coincides with a perfect storm of converging trends, Pichai notes, including the tremendous popularity of netbooks during the recession, the growing acceptance of cloud apps and the rapid innovation in mobile devices. Smartphones are becoming more like laptops, he adds, and laptops are becoming more like smartphones. Is there a better level of computing available for these devices? There is, says Pichai, and he believes it is Chrome OS.

Google's Chrome OS: "It Just Works"

John Paczkowski — Thu, 19 Nov 2009 17:51:03 +0000

Speaking at Microsoft’s Worldwide Partner Conference in New Orleans this past July, Microsoft CEO Steve Ballmer said of Google’s forthcoming Chrome OS, “Who knows what this thing is?”

Today, he found out. The operating system, a direct challenge to Microsoft Windows, was on display at a media gathering at the Google HQ this morning.

Sundar Pichai, vice president of product management, and Matthew Papakipos, engineering director for Google Chrome OS, presided over the event, which the company described as a “technical announcement.”

That meant that Google (GOOG) was not releasing a beta of the operating system this week, as had been rumored.

That said, it was an overview of Chrome, as well as Google’s plans for its launch in 2010, so let the Chrome OS liveblogging begin:

There will be no beta today. Pichai says Google is still a year away from an official launch. However, the company is making the code available today.
Pichai says that a year after launch, the Chrome browser has some 40 millions users. He boasts about the browser’s speed, noting that it handles Javascript 39 times faster than Microsoft’s (MSFT) Internet Explorer. There will be three more big Chrome announcements sometime in the future: Chrome for Mac, Chrome for Linux and the debut of Chrome Extensions.
Google’s goal is to ensure that Web applications function as well as desktop apps. Pichai says that the company is figuring out a way for Web apps to safely take advantage of the operating system in the way desktop apps do. A few examples: Graphics, video/audio applications, real-time communication, notification and local storage.

“By 2010 we expect to have all these things built into Chrome,” Pichai adds.
The advent of Chrome coincides with a perfect storm of converging trends, Pichai says, noting the tremendous popularity of netbooks during the recession, the growing acceptance of cloud apps and the rapid innovation in mobile devices. Smartphones are becoming more like laptops, Pichai adds, and laptops are becoming more like smartphones. Is there a better level of computing available for these devices?

There is, according to Pichai, and Google believes it is Chrome OS.
Among Chrome OS’s advantages, Pichai says: Speed, simplicity and security. Every application will be a Web application. There will be no desktop apps. Chrome OS is essentially a browser with a few modifications. All data in the Chrome OS resides in the cloud. Pichai: “We want all of personal computing to work that way….If I lose my Chrome machine, I should be able to go out, buy a new [one] and re-create my previous computing experience easily.”

Chrome OS will run completely inside the browser security model, he adds, noting that security is one of Google’s top priorities along with speed. “Turning on a PC should be like turning on your TV,” he says.
Chrome OS is very similar in appearance to the Chrome browser. “Chrome OS is Chrome,” says Pichai. Google made it look like a browser, because the browser is familiar.
And indeed, Chrome OS does look quite a bit like a browser. Multiple apps load into tabs, for example. It also features “Panels,” which Pichai describes as persistent lightweight windows. “All Chrome data resides in the cloud. Anything you put in the machine is immediately available to you anywhere.”
As netbooks become more advanced and battery life improves, they will evolve into entertainment devices, says Pichai, who notes that via Google Books, a netbook can become an e-reader, and, through YouTube, a video device.
A quick demo of the user interface, which seems very simple and intuitive. “It just works,” says Pichai in an unintentional nod to Apple (AAPL).

An interesting remark: Anyone who writes an app for the Web has written an app for Chrome, says Pichai, joking that Microsoft is already developing for it.
Speed, simplicity and security, says Pichai. We’re trying to make the computing experience delightful.

With that, Pichai hands the stage over to Engineering Director Matt Papakipos.

Papakipos, too, offers the “we want to make computing delightful” sound byte and notes once again that turning on the PC should be like turning on the TV.
Chrome OS eliminates the bootloader, auto-launching the browser. The OS also auto-updates itself, making sure that it’s always current with security patches, etc. Everything from the firmware to the kernel is secured with a cryptographic signature to ensure a secure boot. In the event malware is detected, the system repairs itself automatically.
The basic application security protocol for current operating systems allows apps the same privileges as the user. This presents obvious security issues. Whenever you install a new app, you’re taking a risk, says Papakipos.

But Web applications like those that Chrome OS use, are different. They are Web apps, so they don’t have system-level privileges. Additionally, all apps run in secured sandboxes that are separate from one other and from the OS. Finally, all apps must be signed and verified before each use.
In terms of file systems, Chrome’s is locked down. It’s a read-only root-file system, obviously quite different from other operating systems. All user data are encrypted and synched to the cloud. Essentially, Google uses the PC for caching. Again, if you should lose your machine, you buy a new one, fire it up and it synchs with the cloud, restoring your previous computing experience.
How will Google bring Chrome OS to market? The company is working with vendors to specify reference hardware. You cannot download and install Chrome on just any device, you will have to purchase a Chrome device. Google is looking at a launch window of late 2010, before the holidays.
Google sounds very concerned about the end-user Chrome OS experience. Pichai says the company wants to ensure that the displays, keyboard, etc., on the netbooks that run Chrome are robust and easy to use.
Pichai wraps things up, but before the Q&A, we’re shown a short explanatory video. “The first thing I want to do when I fire up my computer is browse the Internet….If there isn’t any Internet, I might not even use my computer….What if when you pressed on, your PC turned on, what if your operating system was more like a Web browser…what if it was a browser?…Chrome OS is a totally rethought computer that lets you focus on the Internet, which is what most of use our computers for these days anyway.”

Q&A

At this point, Pichai opens the event to questions:

If you’re specifying hardware components, do you must have an idea of what they’ll cost?

A: We expect Chrome netbooks to be in the price range of what people have come to expect….We are not specifying a price target. Price will be determined at the OEM level.

Will the APIs support W3C standards?

A: We’re working very closely with the W3C to standardize as much as we can….In general, we want to see everything standardized across multiple browsers.

Will there be an application store?

A: The Web offers hundreds of millions of applications. Our job is to make people aware of them.

What about desktop applications that are not available on the Web?

A: We expect most of our users to have a second machine at home….Chrome OS is about a delightful experience on the Web….If you’re a lawyer spending your entire day on contracts, etc., this is not the machine for you.

Will you support Microsoft Silverlight?

A: In the case of certain selection plug-ins, we are working to integrate them. No comment beyond that.

Since Chrome is open source, could people build their own variations?

A: Yes. We expect people will do many interesting things with it.

Do you see Chrome running on laptops or desktops?

A: We’re initially focused on netbook-like form factors–clamshells, etc. That said, the OS is being developed to work on other devices.

Is there any level of offline access? What happens when I’m on a plane and don’t want to pay for Wi-Fi?

A: Chrome devices are primarily intended to be Internet-connected. That said, it will have some caching abilities so, for example, you could play a game offline.

Virtualization?

A: Yes. You could run Chrome today on a virtual machine.

Are you working with outfits like Adobe to, say, build a Web-friendly version of Photoshop?

A: We’re very excited by things like Photoshop on the Web and we’re working hard to make that possible.

Will Android apps work on Chrome? Are there plans for third-party apps?

A: [Pichai dodges this one.] If it’s a Web app, it will work on Chrome. The Web works very, very well for our purposes.

Will Chrome work on both X86 and ARM?

A: Yes.

Is there a direct business model for Chrome OS or is this another variation of the-more-people-that-use-the-Web-the-better-for-Google?

A: We are working with partners. No plans for advertising. That said, Pichai notes again that anything that runs on the Web will run on Chrome. And of course, AdWords does, indeed, run on the Web.

[Sergey Brin joins the Q&A]

Do you want Android Apps to run on Chrome?

A: We are focused on creating the use case in which everything is a Web application, but hopefully we can do more in the future.

How does Chrome handle peripherals? Can it print?

A: Most keyboards, cameras, phones, etc., will work. In terms of printing…yes, Chrome OS will print and we’re working hard to make that possible.

What is Chrome’s strategic position for Google?

A: [Brin]: Call us dumb businessmen, but we really focus on user needs rather than focus on business strategies. We believe that the Web platform is a much simpler way of computing for individuals to use, and that’s a very important need in the market right now. That’s what we’re trying to fulfill.

Is Verizon's New Early-Termination Fee Anti-Consumer?

John Paczkowski — Fri, 06 Nov 2009 19:06:09 +0000

Beginning Nov. 15, Verizon subscribers looking to get out of their smart-phone contracts early will pay $350 for the privilege. That early-termination fee is double the current one, but Verizon insists it’s justified because of the higher prices of today’s phones.

“The cost of smart phones is considerably higher than feature phones for which the early termination fees were created years ago at $175,” said Verizon spokesman Jim Gerace. He added that the new $350 ETF declines by $10 per month through the life of the contract and customers can avoid it by buying their devices off contract and paying full retail price.

An interesting move for Verizon (VZ), which just last year agreed to pay $21 million to settle a class-action lawsuit filed by California consumers over the very early-termination fees it is now increasing. The plaintiffs in the suit alleged that Verizon’s ETFs were illegal under California law and that they were designed to unfairly lock consumers into long-term contracts and prevent them from switching carriers. When Verizon settled the suit, it denied any wrongdoing, insisting that early-termination fees are simply a means of recovering legitimate costs. And to some extent Verizon does have a point.

Full retail price for the Motorola’s (MOT) new Droid is $559.99. With a two-year contract, Verizon sells the handset for $199.99. Theoretically, that’s a $359.99 subsidy (I have no idea at what price Verizon purchases Droid from Motorola). So if Verizon allowed subscribers to break their contract after a month without paying an early-termination fee, the company would stand to lose money. And subscribers who did so could subsequently sell the device online and potentially make a profit, though a small one.

So it’s certainly understandable that Verizon and other carriers want to protect the subsidies they dole out for these new smart phones. And as noted earlier, Verizon’s new ETF drops by $10 each month a subscriber remains under contract. But at this rate, subscribers are still bound to pay a $110 termination fee in the 23rd month of a two-year contract. The contract is nearly over, the subscriber obligation to Verizon almost fulfilled, yet the company can still slap its customers with nearly a third of the full ETF if they break it at that time.

By month 23 of a two-year contract, does Verizon really stand to lose $110 if subscribers decide to switch carriers? Doesn’t seem likely if subscribers can walk away just a month later without consequence, taking their handsets with them.

Since Verizon is pro-rating the ETF, why isn’t it doing so in such a way that it zeroes out by the end of the contract?

And isn’t the fast pace of innovation in the smart-phone sector such that prices–for both component and device–are dropping so quickly that high ETFs aren’t really justified? Remember, you can get Apple’s (AAPL) iPhone for $99 today. When the iPhone debuted in 2007, it commanded a price of $499/$599, depending on model.

I’ve put those same questions to Verizon and will update here when I hear back. In the meantime, here’s what Consumers Union policy analyst Joel Kelsey has to say on the matter: “When people want to switch wireless services, the biggest cost they face is early termination fees. These fees are designed to lock people into long-term contracts and stop them from getting better deals. Early-termination fees make the marketplace less competitive. Verizon’s move is painful proof that it’s time for lawmakers to crack down on these fees.”

UPDATE: Verizon Wireless spokesperson Nancy Stark offers the following answers to the questions I posed above:

Your first question regarding the balance at month 23 or 24 assumes that, at that point, we have recovered all of our subsidy and up-front costs for every device. That simply is not so.

On your second question, while the pace of innovation plays a role in prices coming down somewhat, it also plays a role in driving up costs as more and more complexity that customers want is added to phones–from premium HTML browsers to high-resolution MP cameras with optical zoom; videoplayers; music players; dual processor chipsets; WiFi; very high display resolution, operating systems such as BlackBerry, Windows Mobile, Palm, Android–ALL with the added value (vs a desktop) of mobility, and ALL in one tiny device that ALSO allows you to talk to anyone from anywhere. phew! (by comparison, I recently paid $200 for a camera and all it can do is take pictures, and it has only middle of the road capabilities.)

But getting back to ETFs specifically. The most important point is that Verizon Wireless customers do not have to have an ETF at all if they do not want to. ETFs allow customers to have it either way: They can have no ETF and pay full retail for their device. OR, they can get a greatly discounted device by having an ETF.

New York Slaps Intel With Antitrust Suit

John Paczkowski — Wed, 04 Nov 2009 17:07:35 +0000

“After Gateway’s 2004 merger with eMachines, AMD attempted to revive the relationship it had enjoyed with Gateway until 2001, but experienced extremely limited success. While Gateway built one AMD-powered desktop model at the request of Circuit City, AMD remains locked out entirely of Gateway’s direct internet sales, its commercial offerings and its server line. According to Gateway executives, their Company has paid a high price for even its limited AMD dealings. They claim that Intel has beaten them into ‘guacamole’ in retaliation.”

– Excerpt from AMD’s 2005 complaint against Intel

Looks like it’s going to be a very busy fall for Intel legal. This morning, New York Attorney General Andrew Cuomo filed a federal antitrust lawsuit against the company, alleging that it violated state and federal laws with a “systematic campaign” of illegal conduct to maintain its monopoly.

At issue here, once again, is Intel’s alleged practice of using bribery and coercion to maintain its monopoly, something rival AMD complained about in its own antitrust suit against Intel (INTC) in 2005.

AMD (AMD) alleged, for example, that in 2000, Michael Capellas, then chief executive of Compaq Computer, told AMD that because of Compaq’s relationship with AMD, Intel withheld the delivery of some microprocessors he needed for servers. Capellas told AMD he would stop buying from it, saying he “had a gun to his head.”

Further, in 2004, Gateway officials are alleged to have told AMD that Intel “beat them into guacamole” in retaliation for their limited dealings with its rival. These are but two incidents in a list that includes similar alleged acts of coercion by Intel involving 38 other computer makers, distributors and retailers.

Apparently, Cuomo has found evidence of similar behavior. “Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market,” Cuomo said in a statement. “Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”

Apple to Investors: You're Welcome

John Paczkowski — Tue, 20 Oct 2009 13:49:17 +0000

The econalypse may be winding toward its end, but for Apple it evidently never even started. Shares in the company spiked more than $12, or more than six percent, to $202 in early trading Tuesday as investors celebrated another of the company’s great quarters.

“We are very impressed by Apple’s ability to post a record profit quarter during difficult macro spending conditions,” Canaccord Adams analyst Peter Misek said in a note to clients this morning. “A host of new product introductions and continued traction with the iPhone give us confidence in the sustainability of Apple’s operating model.”

Suffice it to say, Misek wasn’t the only the analyst lauding Apple’s (AAPL) fourth-quarter performance. Below a selection of commentary from other Apple watchers:

Gene Munster, Piper Jaffray
“September results were strong despite headwinds of iPhone production constraints and a Mac desktop offering in need of a refresh. We expect these headwinds to become tailwinds in the December quarter, which we believe will be positive for AAPL shares in the coming months.”

Mike Abramsky, RBC Capital Markets
“With strong financial performance and product uptake amidst recession, and further catalysts (iPhone in China, Tablet, refreshed iMacs, iPhone share gains/momentum), we foresee further upside for the shares.”

Maynard Um, UBS
“Upside to virtually every metric in the qtr backs our positive view on Apple. We continue expect greater “recurring” iPhone hardware revenue (growing installed base & stickiness of the App Store), which should drive more visibility into iPhone sales (20%+ of our FY10 iPhone shipments), as well as iPhone expansion driven by new partnerships (& end of exclusivities). Longer term, we believe a service to provide seamless access & mobility of digital content across all products may be the draw (halo) that drives additional future Apple product sales.”

Tavis McCourt, Morgan Keegan
“Overall, Q4:09 was a strong quarter for Apple, as the Mac is nearly becoming the de facto computer for the back-to-school season. Additionally, iPhone trends remain remarkably strong, with unit economics holding up at unheard of levels in the wireless industry.”

Yair Rainer, Oppenheimer
“As usual, Apple appears to be leaving plenty of room for upside surprises to both revenue and margins. On the revenue side, Apple should benefit from continued Mac momentum (particularly in Europe), higher recognized iPhone revenue, and some channel fill for both Mac and iPhone. Gross margin upside is likely to come from a higher proportion of recognized, high-margin iPhone revenue.”

Oh, Snow Leopard Frees Up Disk Space All Right

John Paczkowski — Tue, 13 Oct 2009 16:00:08 +0000

Apple has finally acknowledged that a bug in its new Snow Leopard operating system can, on rare occasions, result in a catastrophic loss of data. The glitch, which first surfaced in support forums in early September, is triggered by logging in and out of a guest account and wipes the main user account of all data.

“When I logged into my MacBook Pro this morning, it was as if I had logged into my Guest Account and not my standard user profile,” one Snow Leopard user explained in Apple’s Support Discussions. “No icons on the desktop, the desktop wallpaper was the default ‘space’ photo and not the one I had assigned, no documents in the docs folder, apps behaved as if I’d never opened them before.”

Clearly, this is not what Apple (AAPL) meant when it claimed the OS would free up as much as seven gigs of space upon installation.

Obviously, this is a nasty flaw, and it’s a pity it has taken Apple this long to cop to it. But it has and, as the company told News.com yesterday, a remedy should be forthcoming. Said an Apple rep: “We are aware of the issue, which occurs only in extremely rare cases, and we are working on a fix.”

Dell Adds 905 Employees to North Carolina Labor Pool

John Paczkowski — Thu, 08 Oct 2009 14:15:17 +0000

So much for Dell’s personal computer manufacturing operations in the United States. On Wednesday, the PC maker said it would close its plant in Winston-Salem, N.C., as part of a long-term restructuring that will see it cut costs by $4 billion by the end of fiscal 2011. Over 900 employees will lose their jobs as a result.

“This was a difficult but necessary decision to improve the company’s competitive position,” Dell (DELL) spokesman David Frink said. “It is not a commentary on workers in North Carolina or workers in the United States.”

Of course not. As Dell CFO Brian Gladden said during the company’s last earnings call, “Our cost reduction programs have never been more crucial than during this weaker demand environment.”

Still, it’s unfortunate to see the company forced to shift work once done in the states to lower-cost contract manufacturers abroad. This is, after all, Dell’s third big closure in recent memory. The company stopped desktop manufacturing in Lebanon, Tenn., earlier this year, and in 2008, it shuttered a desktop plant in Austin, Texas.

85 Percent of Mac Switchers Forgot to Toss Windows PC

John Paczkowski — Mon, 05 Oct 2009 16:51:30 +0000

Approximately 12 percent of all computer-using U.S. households own an Apple (AAPL) machine (a nice jump from nine percent in 2008), and nearly 85 percent of those also own a Microsoft (MSFT) Windows-based PC.

That’s the conclusion of an NPD survey that suggests that Mac households favor multiplatform environments, buy more gadgets and have the higher income needed to afford them.

“While Apple owners tend to own more computers and more electronics devices, there is also a high correlation among Apple owners and more affluent consumer households,” said NPD’s Stephen Baker. “The average Apple household owns 48 CE devices whereas the average computer household owns about 24.” (See chart below; click to enlarge.)

Not a surprise, really. Presumably, if you can afford to purchase a $1,199 laptop or desktop, you can afford to buy an assortment of other gadgetry to go along with it. A couple of other data points worth noting:

66 percent of Mac households own three computers or more, compared to 29 percent of Windows households.
63 percent of Mac households own an iPod. The same can be said of only 36 percent of all computer-using households.

Sadly, NPD’s survey didn’t explore how PCs are used in Mac households or how they ended up there in the first place. Are they leftovers from a PC-to-Mac switch? Are they corporate laptops? Entry-level machines for the kids? High-end gaming machines?

Apple FCC Docs Hint at iMac Refresh

John Paczkowski — Fri, 02 Oct 2009 22:02:55 +0000

It’s looking more and more likely that Apple is planning a fall refresh of its iMac line. Last week, we heard rumors that some new all-in-one, dual-core desktops were already rolling off the assembly lines of Apple’s manufacturing partners. Now Engadget has spotted Federal Communications Commission filings that confirm the existence of the new wireless mouse and keyboard that might be paired with them.

Neither filing provides much detail about either device beyond model number, though the keyboard described in one does appear to be smaller than the current model. That said, AppleInsider speculates that the mouse Apple (AAPL) is evidently working on will be significantly mightier than the current Mighty Mouse, scrapping the device’s rollerball in favor of a touch-sensitive housing and perhaps even an aluminum finish.

[IImage Credits: Engadget and MacBlogz]

New iMacs May Include "Bag of Hurt" Option

John Paczkowski — Fri, 25 Sep 2009 17:19:33 +0000

Asked in October 2008 why Apple wasn’t yet offering Blu-ray DVD drives as an option on machines, Apple CEO Steve Jobs said the licensing issues were too complex to make doing so worthwhile. “Blu-ray is a bag of hurt,” he quipped.

Well, no longer. Because Apple (AAPL) is planning to refresh its iMac desktop computer in the next few weeks, and when it does, it may well offer a Blue-ray drive option.

Sources tell AppleInsider that the new all-in-one, dual-core desktops, which are also said to feature a new, slimmer enclosure, were finalized earlier this month and are already rolling off the assembly lines of Apple’s manufacturing partners.

“The late 2009 iMac line should also debut several features previously unavailable to Mac buyers,” the publication notes. “People familiar with Apple’s thinking have suggested in recent months one of these moves could see the company finally embrace Blu-ray.”

One last point worth noting here: According to the MacRumors Buyer’s Guide, the iMac is due for a refresh. Apple has updated it every 220 days on average since it debuted the machine in 2003. As of today, it has been 204 days since the last update. MacRumors’s recommendation: “Buy only if you need it–Approaching the end of a cycle.”

EC to Intel: How's This for "Manifestly Disproportionate?"

John Paczkowski — Mon, 21 Sep 2009 18:16:49 +0000

Intel’s criticism of the European Commission’s legal acumen clearly has not gone over well in Brussels. The EC today responded to Intel’s claims that the Commission’s antitrust ruling against the company was meted out in error by releasing the full text of its decision and a selection of email correspondence and internal memos that make it clear that Intel (INTC) probably should have kept its big mouth shut.

“There have been some suggestions that the decision was based on allegations and not facts,” said Jonathan Todd, a commission spokesman. “With the publication of this decision, you can see precisely the details of the facts and how Intel broke the law.”

Below, a few of those details:

From a series of 2006 Lenovo e-mails:
“As you know I have been negotiating a special deal with Intel. The net is that Intel has made us a very attractive offer that we will end up taking. Our part of this deal is that we will award all business of shipments for the rest of this calendar year to Intel. In exchange, Intel will give us a special deal for both [geographical area] and [geographical area]. The deal is worth millions of dollars.”

“[two Lenovo executives] had a dinner with [an Intel executive] tonight (…). […] When we asked Intel what level of support we will get on NB [notebook] in next quarter, [he] told us (…) the deal is base[d] [sic] on our assumption to not launch AMD NB [notebook] platform. (…) Intel deal will not allow us to launch AMD.”

From a 2002 HP e-mail concerning the company’s negotiation of a rebate agreement with Intel:
“PLEASE DO NOT… communicate to the regions, your team members or AMD that we are constrained to 5 percent AMD by pursuing the Intel agreement.”

From a 2004 HP e-mail:
“You can NOT use the commercial AMD line in the channel in any country, it must be done direct. “If you do and we get caught (and we will) the Intel moneys (each month) is gone (they would terminate the deal). The risk is too high.”

From a 2004 Dell e-mail:
“[Intel senior executives] are prepared for [all-out war] if Dell joins the AMD exodus. We get ZERO MCP for at least one quarter while Intel ‘investigates the details’ (…) We’ll also have to bite and scratch to even hold 50%, including a commitment to NOT ship in Corporate. If we go in Opti [Optiplex corporate desktop line], they cut it to <20% and use the added MCP to compete against us" and "It looks 100% certain that Intel will take MCP to ZERO for at least one quarter while they 'review all of the numbers and implications.' (...) Appears likely that Intel would take MCP to <25% of current levels UNLESS we agree up front not to ship into [Product line]. If we do that, we're in 'détente' mode and can keep MPC [sic] at 50%. However, we don't meet [AMD Senior Executive]'s T&Cs [Terms and Conditions]. So, I would plan on MCP at <20% levels if we execute AMD across [Product line]and [Product line] as AMD wants."

Sounds pretty damning, no? Well, Intel doesn’t think so. In a hastily issued response, the company dismissed the EC’s release of the documents saying, “there’s nothing new here.”

“This Decision reflects the underlying bias we have come to expect from the case team that ran this investigation,” Intel said. “The Commission relied heavily on speculation found in e-mails from lower level employees that did not participate in the negotiation of the relevant agreements. At the same time, they ignored or minimized hard evidence of what actually happened, including highly authoritative documents, written declarations and testimony given under oath by senior individuals who negotiated the transactions at issue.”

iPhone Undermining Microsoft in Enterprise?

John Paczkowski — Fri, 07 Aug 2009 13:00:51 +0000

Microsoft best get Windows Mobile 7 to market, and soon, because its delay may be causing the company to lose traction in the enterprise market. In a note to clients Thursday, UBS Securities analyst Maynard Um noted that Apple’s (AAPL) iPhone is making some inroads in the enterprise space and that they’re coming at Microsoft’s (MSFT) expense.

“We believe Apple is likely gaining some iPhone traction in enterprise with 19 of top 100 Fortune 1000 companies having iPhones deployed,” Um wrote. “However, we do not think this is a displacement of solutions such as BlackBerry but, rather, believe it is likely at the expense of other Microsoft Exchange capable smartphones.”

Um sees great opportunity in this trend, as long as Apple is willing to step up its game a bit. “In order for Apple to gain greater traction in the enterprise market,” he writes, “the company must overcome some issues including providing 24×7 customer support, providing more future product roadmap details (to allow large enterprises to build ahead and prepare), provide alternatives to OS upgrades solely from iTunes desktop application.”

Ironic, isn’t it, to read such a note in light of all the smack Microsoft CEO Steve Ballmer once talked about the iPhone? “There’s no chance that the iPhone is going to get any significant market share,” Ballmer said in 2007. “No chance. It’s a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.”

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2009 PC Sales: The PC Stands for Pretty Crappy

John Paczkowski — Wed, 15 Jul 2009 11:30:49 +0000

The global PC market will suffer a rare decline this year with shipments expected to slip four percent to 287.3 million units in 2009, from 299.2 million in 2008 (click on chart to enlarge). Not since the dot-com bust of 2001 have PC sales been so slow or their outlook so grim, says iSuppli, the research outfit charting the market’s collapse.

“An annual decline in unit shipments is highly unusual in the PC market,” says Matthew Wilkins, principal analyst, for iSuppli. “Even in weak years, PC unit shipments typically rise by single-digit percentages. The last decline–in 2001–was a 5.1 decrease in unit shipments due to the extraordinary impact of the Dot-Com bust, which caused inflated IT spending levels from the previous years to collapse.”

Driving the gloomy forecast this time around: The econalypse, of course, but also, dwindling demand for desktop computers. iSuppli expects an 18.1 percent drop in desktop shipments, from 151.9 million in 2008 to 124.4 million in 2009.

Grim, I know. Still, there is a bit of good news in the report. Notebook PC shipments will rise 11.7 percent to 155.97 million units in in 2009, exceeding desktop shipments for the first time ever.