Apple's New Products: Are They Game Changers? (video)

Apple's New Products: Are They Game Changers? - Technalysis Research President and Chief Analyst Bob O'Donnell discusses the launch of the latest products from Apple, the new features and if they are worth the upgrade. He speaks to Bloomberg's Angie Lau on "First Up." Sept. 10, 2015

NASDAQ: AAPL

Follow @johnmpoole

FTC punishment against Apple 'has no foundation'

The FTC is one sick federal agency -- it ought to be shut down since it glorifies itself wasting tax dollars on meritless cases --

FTC commissioner says in-app purchase punishment against Apple 'has no foundation': In the dissent, which was issued alongside the FTC's own decision, Commissioner Joshua D. Wright echoed Apple chief Tim Cook's own conclusion that the Cupertino, Calif. company had already taken sufficient action — instituting refunds and altering the behavior of in-app purchase prompts — to remedy any hardships caused by children's accidental purchases. The opinion was first spotted by Fortune's Philip Elmer-Dewitt. "When the problem arose in late 2010, press reports indicate that Apple developed a strategy for addressing the problem in a way that it believed made sense, and it also refunded customers that reported unintended purchases," Wright wrote. Given Apple's actions, the "commission has no foundation upon which to base a reasonable belief that consumers would be made better off if Apple modified its disclosures to confirm to the parameters of the consent order," he continued, adding that in "the absence of such evidence, enforcement action here is neither warranted nor in consumers' best interest." Some believe that the commission's order was a political ploy, designed to gain accolades from the electorate at the expense of one of America's most important corporate citizens..."

Typical irresponsible FTC behavior. Congress ought to investigate the shenanigans going on over at the FTC -- pursuing meritless cases against Google, Apple, and other reputable companies!

Tweet    Follow @johnmpoole

Apple Missing Out as Global Carriers Balk

A follow-up to my post days ago about Apple--

Apple Misses IPhone Customers as Global Carriers Balk - Bloomberg: "Apple Inc. (AAPL) is missing out on a chance to court as many as 2.8 billion new smartphone customers, many of them in Asia, as wireless-service providers balk at conditions imposed by the iPhone maker and drag their heels in signing on as partners. Apple has announced fewer than a dozen new wireless-service providers to sell the device since September 2011, leaving the total at about 240. Holdouts represent billions of would-be subscribers in countries such as China, Japan, India and Russia . . . ."

Apple's problem is Apple.

Tweet    Follow @johnmpoole

Wireless Accessory Makers Think Beyond Apple

Apple's Problem:  litigious, paranoid, obsessive, controlling--of users and vendors--

Apple’s Rivals See an Edge in Using Wireless Accessories - NYTimes.com: " . . .“At some point Apple’s obsession with having control over everything that is associated with its products may wind up biting it,” Mr. Horwitz said. The Bluetooth standard for wireless connections has allowed accessory makers to build products that can work with many kinds of devices because they no longer have to worry about a physical hook. Other phone makers like Samsung and tablet-computing device makers like Amazon have become strong alternatives in the eyes of gadget shoppers. And Apple itself provided an opening for competitors when it changed the way its phones connect to other devices, aggravating both its business partners and consumers. Now accessory makers are eager, even obliged, to think beyond Apple. . . "

Tweet    Follow @johnmpoole

Apple, Europe, and Taxes

I've already written why there will be no tax reform in Washington or elsewhere because the big corporations pay such low tax rates currently--don't believe it when you are told we have a progressive tax system. The tax system in the US is grossly regressive--in fact, a flat tax system, with no personal deductions and corporate loopholes, would be much fairer than our present system. Just read the following--

No, Really, Apple Just Isn't Doing Any Tax Avoidance In Europe - Forbes: "Various of the English newspapers like to run stories on how the big tech companies are avoiding tax in the UK and Europe. Every week or two we get another piece saying that Facebook, or Amazon, Apple, have been avoiding tax and that this is an outrage, must be stopped etc. The sad thing about all of these stories is that the people writing them just don’t seem to understand the basics of the European corporation tax system. The latest story is the Sunday Times with Apple. That paper’s gated so here’s the Telegraph explanation of it:

Apple is estimated to have avoided more than £550m in tax in Britain in 2011. Its latest accounts show UK turnover at just over £1bn and profit at £81.3m, generating a tax bill of £14.4m.

 . . . So, clearly, Apple has been tax avoiding, right? Sadly, no, that’s where the problem comes in. . . . What they’re actually doing is selling the hardware through their Irish company. This one, right here. They do have AppleStores in the UK, yes, and it’s the retail sales from those that provide that £1 billion turnover and that small tax bill. But if you buy online from Apple you get your kit from Ireland. If you’re a dealer, a reseller, a shop, an electronics chain, a telecoms chain, you get your kit from Ireland. As, more than likely, do the AppleStores get their machines through Ireland. Yes, Ireland has a much lower rate of corporation tax than other EU countries: but this still isn’t tax avoidance. For we now have to look at the “but did the lawmakers mean this?” test. And the truth is, yes they did. . . . "

So don't blame Apple and the other corporations--blame the governments!

Tweet    Follow @johnmpoole

This is why there is no tax reform

Tax reform is acknowledged as a priority need by almost everyone but nothing is getting done--in Washington or  elsewhere. Wonder why? Well the most powerful corporations have a great deal right now paying only about 2% tax rate (see below)--why would Apple et al want tax reform where they might have to pay their fair share? There are plenty of lobbyists and lawyers paid by big corporations to block true reform from ever taking place in Washington. Here's an excerpt of just one of many stories--

Apple Is Hiding Billions Of Dollars From The IRS - Business Insider: " . . . Technology giant Apple shuttled $11bn (£7bn) into offshore tax havens in the fourth quarter of 2012, an analysis of its corporate filings has revealed. The iPad maker has slashed its tax bill by paying less than 2pc on its overseas profits, as it moves money through offshoots in low-tax countries such as the British Virgin Islands. Apple's completely legal tax avoidance strategies bring the total the company has sheltered from the US tax authorities to $94bn, according to a Sunday Times analysis. Corporation tax on Apple's overseas operations amount to just 1.9pc of profits, compared with a tax rate of up to 24pc in the UK and 35pc in the US. Apple is estimated to have avoided more than £550m in tax in Britain in 2011. Its latest accounts show UK turnover at just over £1bn and profit at £81.3m, generating a tax bill of £14.4m.

Read more: http://www.businessinsider.com/apple-is-hiding-billions-of-dollars-from-the-irs-2013-1#ixzz2JDMJHpv7

Tweet    Follow @johnmpoole

Early sales of Windows 8 are far below Microsoft’s expectations

Whispers are out that early sales of Windows 8 are far below Microsoft’s expectations - The Next Web: "The extent of the miss is the only remaining question. . . . Is there any need to fret, therefore, about Windows 8, given that it will sell truckloads of copies, simply due to the dynamics of the PC market? Yes, as consumers could reject the new Metro Start Screen, increasingly turn to Macs, or drop out of the PC market entirely if Windows 8 is found to be too unpalatable."

Personally, I was scheduled to update and buy a new PC at the end of this year. Due to the problems with Windows 8 on a non-touch screen PC (I need a keyboard and mouse to do my work, and Word is a critical "must-have" program)--I updated early to a Windows 7 HP Ultrabook prior to the launch of Windows 8.  I know of others who are migrating from Windows 7 (and XP) to a new Mac--Microsoft's loss, Apple's gain--and even some moving entirely to the Cloud via Chromebooks. How significant the overall loss and erosion from Microsoft to Apple and Google's Chrome will be, only time will tell.

I can foresee moving entirely to a Chromebook within 3 years. How about you?

Tweet    Follow @johnmpoole

Apple v Samsung - Who Really Won?

The paradoxes of "litigation" are becoming clear in the infamous Apple v. Samsung case--the winners? Lawyers ($$$) and Android:

Check, Please: Experts Say Apple, Samsung Face Sky-High Legal Fees - Law Blog - WSJ: "One group was always going to make out well in the titanic legal battle between Apple Inc. and Samsung Electronics Co.: the lawyers. . . ."

Why Apple Actually Lost to Samsung | John C. Dvorak | PCMag.com: "Several times throughout the case, the same point was driven home: the Android phone is identical to, and perhaps better than, the iPhone. This "revelation," which Android users have always known, will easily cost Apple more than a billion dollars in sales."

Where this leaves Apple long-term becomes troubling. Over time, android and its various manufacturers will continue to iterate and out-innovate Apple. Apple concedes it cannot compete on "price." Apple's market share will diminish and it will at some point be spending more in legal fees than it will be able to recoup in damages or by restraint of trade and competition through legal processes. Steve Jobs was a guy I admire--but he had character defects as we all do. One of those was an imagined sense of being a "victim" of "rip-off" of designs, etc. A classic example of this was the accusation he hurled at Bill Gates and Microsoft:

Microsoft News » Bill Gates Response To Steve Jobs On Windows Rip-Off Claim: "Their meeting was in Jobs’s conference room, where Gates found himself surrounded by ten Apple employees who were eager to watch their boss assail him. Jobs didn’t disappoint his troops. “You’re ripping us off!” he shouted. “I trusted you, and now you’re stealing from us!” Gates just sat there coolly, looking Steve in the eye, before hurling back, in his squeaky voice, what became a classic zinger. “Well, Steve, I think there’s more than one way of looking at it. I think it’s more like we both had this rich neighbor named Xerox and I broke into his house to steal the TV set and found out that you had already stolen it.”"

Tim Cook is a competent manager but he's not a "product guy" nor does he strike me as being "litigation saavy." I wonder if he understands that lawyers will gladly ride Apple's decline all the way to bankruptcy and liquidation?

Tweet    Follow @johnmpoole

Apple v Samsung - a broken legal system - a defective jury verdict

Almost everyone knows the American patent system (and legal system) is broken, but what a mess in San Francisco--

Groklaw - Jury in Apple v. Samsung Goofed, Damages Reduced -- Uh Oh. What's Wrong With this Picture?: "In two instances, results were crazily contradictory, and the judge had to have the jury go back and fix the goofs. As a result the damages award was reduced to $1,049,343,540, 1 down from $1,051,855,000. For just one example, the jury had said one device didn't infringe, but then they awarded Apple $2 million for inducement. In another they awarded a couple of hundred thousand for a device they'd ruled didn't infringe at all. "

How to fix this? The immediate fix: throw out the verdict, grant new trial. Long term fix: comprehensive reform of the U.S. patent and legal system.

Tweet    Follow @johnmpoole

Apple Gets Sued Again in China

Now that Apple has indicated it is willing to pay millions to settle meritless claims in China--watch out--the flood of lawsuits is just beginning--

“China’s Siri” Sues Apple’s Siri Over Infringement! (video) » M.I.C. Gadget: "What a busy moment for the Apple’s legal team in China! Apple now has two infringement lawsuits to deal with, the Mac OS X “Snow Leopard” trademark that we reported just days ago and now comes to Apple’s voice assistant application Siri. . . . "


Tweet    Follow @johnmpoole

Google, Larry Page, Steve Jobs, and Apple: a different take

The Education of Google's Larry Page - Businessweek: " . . . At the end of the conversation, Page addresses one anecdote relayed in Walter Isaacson’s best-selling biography of Steve Jobs. According to a story in that book, Page called Jobs before his death, seeking advice on how to run Google. Jobs had threatened “thermonuclear war” on Google for copying elements of the iPhone, Isaacson wrote, but put aside his animosity over Android to counsel the young CEO. Page offers a different version of those events. He says that Jobs reached out to him, not the other way around, and that when they met, in the last months of Jobs’s life, the Apple founder offered useful insights into how to run a company. Page believes that Jobs’s fury toward Google was not entirely genuine and was “actually for show.” Asked to explain, he suggests that Jobs’s apparent rage about Android was merely meant to motivate Apple employees. “For a lot of companies, it’s useful for them to really feel like they have an obvious competitor and to rally around that. I personally believe it’s better to shoot higher. You don’t want to be looking at your competitors.”. . ."

Interesting and very possible, but also note that Page concludes: "it’s better to shoot higher. You don’t want to be looking at your competitors."

While the markets are enthralled with Apple and the IPO of Facebook, it's worth noting that Google is best in class in Search, Browser (Chrome), Email (Gmail), Mobility (Android), Video (YouTube), and Advertising (Adsense etc.), with an array of additional products that appeal to a wide range of users and content creators including Google Docs, Google Voice, Google Talk, Blogger, Picasa, and now Google+ and Google Play.

No wonder Steve Jobs felt threatened.

Tweet    Follow @johnmpoole

Apple's design wizard has not left the building

Apple's design wizard has not left the building 

San Jose Mercury News

Both subscribe to a philosophy of minimalism that is expressed in everything from a computer's understated silhouette down to its Spartan packaging. Then there's that shared devotion to detail, which drove Jobs to kill the iMac's cooling fan "because ...

. . . .

Leander Kahney, editor and publisher of Cult of Mac, said, "The next five years at Apple will be very much like the last five. They've been busy running the company during Jobs' medical leaves and nothing has really changed. With the creativity of people like Ive, they'll go on to even greater success.

"After all," he said, "Jobs' greatest product was not the iMac or the iPhone -- it was Apple itself. He's built an amazing machine there, and it'll run just fine without him."

  Tweet Follow @johnmpoole

What Apple, Microsoft et al have in common

 

What Apple, Microsoft et al have in common?

Microsoft sues to prevent Motorola sales in US ( - Legal ): "These companies appear to be entering an era where increasing resources are spent battling in the courts at the expense of development and innovation, the aspects that made each of them world leaders in the first instance."


Follow @johnmpoole

The difference between HP and Apple today

Hewlett-Packard’s legend in Silicon Valley and the rest of the tech world is well-known. The company had iconic leaders of its own: Bill Hewlett and David Packard, the Stanford guys who started HP in a Palo Alto garage. But the company lost Hewlett and Packard a long time ago, and it has had many incarnations since then. It has become the world’s largest PC maker, but is now preparing to move away from the slower-growth and less-profitable industry. It is the same industry that has been disrupted by Apple’s newest products, which have helped push tech into the emerging post-PC world. What Googorola and HP’s shift have in common: Apple and Steve Jobs | Good Morning Silicon Valley
The difference between HP and Apple today? Obviously the quality of management and leadership.

Follow @johnmpoole