Back to the future: Apple and Microsoft on collision course, again
By 1997, Jobs was again CEO of the company he co-founded and Apple was back in business, but with a small "b" compared to Microsoft.At the end of its fiscal year for 1997, Apple had lost $1 billion on $7.1 billion in mostly hardware sales.For its fiscal year, Microsoft posted revenues of $11.36 billion with $3.45 billion in net income selling software bits. But the tables turned with the advent of what Jobs would later describe as the "post-PC era." It was a crucial time period and Microsoft missed the significance of the iPod and later, the arrival of iTunes. Microsoft was also missing in action when Apple unveiled the iPhone in January 2007 -- and then another game-changer in the form of the iPad in March 2010. While Microsoft continued to dominate the desktop and business markets, Apple went on to lead the pack in mobile, which is where the proverbial puck was heading.Apple has sold more than 85 million iPhones since its inception, including 26 million in the second quarter of 2012, good for a 16.9 percent share of the worldwide market, according to IDC. Even though it doesn't have the biggest share of the global smartphone market -- that title goes to Google's Android with 68.1 percent, according to IDC -- Apple still extracts enormous profits compared with Samsung and other rivals.When it comes to the iPad, it gets even better. Apple has more than double the share of the competing Android tablets, according to Gartner. Gartner expects Apple will finish out the year with a projected 73 million units, which would begood for a 61.4 percent share. That, by the way, is in a market segment Apple did not invent (though it certainly made it relevant and wildly profitable.)But in this second decade of the new millennium, Apple will be in for stiffer competition. Google has armed its partners in a bid to slow the company's mobile momentum. With the iPad Mini allegedly in the wings, Google has even advertised its Nexus 7 tablet on its sacred, advertising-averse home page. Amazon is about to launch a new Kindle Fire tablet, and now, the big dog Microsoft is entering the field with its armada of partners and marketing machine.Different era, a different MicrosoftJust as this is not the Apple of yore, neither is this the same Microsoft, which has suffered through what Vanity Fair described in a company profile as a lost decade. No kidding. Settling into a complacent middle-age, Microsoft bore little resemblance to that once-scary company that demolished Netscape. Mocked for its slow-paced updates to its core operating system -- for good reason -- Microsoft has been been a joke line when it came to personal technology's two most important and fast-growing markets: tablets and smartphones. Even worse, it was being ignored in the conversation, as per this 2010 think piece about the eventual winner of the "great mobile war."But persistence is an attribute that has served Microsoft well.This was always a company with deep pockets that won by staying at it through many failing iterations of a product, such as the Xbox, which took years to pay off. History may be repeating. Despite the ne'er-do-well caricature, Microsoft has responded with incarnations of its operating system for phones, tablets, and the desktop that so far has escaped the usual crucification from the tech elite. Some of this may be nothing more than the residue from years of lowered expectations. Also, Microsoft has been out of the leadership discussion for so long that it benefits from being the underdog to Apple's iOS platform and Google's Android.But this is more than a case of Microsoft engineers inventing products that don't suck. Based on the early reviews,Microsoft's mobile OS is shaping up is a winner. Users will have final say but the early look reveals good technology that's fresh, new and -- very important in our increasingly litigious times -- appears nothing like iOS or Android. Microsoft's Surface tabletMicrosoftThe build-up in advance of Windows Phone 8 -- the next major version in Microsoft's mobile reboot -- began Wednesday at the IFA show in Berlin. Samsung showed off what officially was the first Windows device to run the newer software. Next week Nokia is expected to show off some of its own upcoming Windows Phone 8 devices, (AT&T is rumored to be the lead carrier for them.)And ZDNet reports that HTC is expected to have its own Windows Phone 8 handsets by mid-September. Not to be ignored is Microsoft's Surface tablet, Microsoft's answer to the iPad, and the ever-growing sea of tablets that run Android. The device, which was introduced at a flashy press conference in Hollywood earlier this year, will land on the same date as Windows 8. One version is expected to be a more price-friendly version running Windows RT on top of ARM chips. The other, likely a bit pricier, will run Windows 8 Pro on top of Intel "Ivy Bridge" processors. Undoubtedly, the Surface was as much a wake-up call to partners to invent better designs as it was a demonstration of Microsoft's own technology chops. Microsoft might eventually throttle back if its OEMs do engineer Windows 8 devices that are as good -- if not better. But like Apple, Microsoft is confident that it has a winner on its hands.It's too early to tell how the new Windows will resonate with customers, but this fall is shaping up to be a lot of fun. Apple is well armed in the next few quarters to maintain its momentum. In its last fiscal quarter, ending June 30, Apple had $35 billion in revenue and $8.8 billion in net profit, as well as more than $117 billion in cash and securities. With the iPhone 5 and iPad Mini expected to have fall debuts, Apple will likely have its greatest quarter ever.This much is clear: the two most important technology developers in the history of the technology industry are set for another collision course. Just like old times. And, the new kid on the block -- Google -- is hoping they are too busy battling each other to notice Android incursions. Get out the popcorn and pull up a seat.
Pandora One hikes subscription price, nixes annual option
Pandora One hikes subscription price, nixes annual option
Pandora is making a few changes to its premium streaming music service -- most notably a fee hike for new monthly subscribers.The company announced Tuesday that because of rising royalty rates it pays to musicians, it's having to up its monthly fee for the first time since Pandora One debuted in 2009. Starting in May, new members will have to pay $4.99 per month rather than the current rate of $3.99 per month."The costs of delivering this service have grown considerably," Pandora wrote in a blog post. "For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening have increased 53 percent in the last five years and will increase another 9 percent in 2015. In order to continue to provide an ad-free listening option, we are implementing some changes to the way we price Pandora One."Pandora One is the company's premium version of its steaming radio service. Initially, the service cost $36 per year and then later a $3.99 per month option was added. With this new price hike, Pandora is also getting rid of the annual option. So, users will now only have the pay-per-month option.While Pandora is increasing its price for new users, existing users that stay active can keep paying $3.99 per month. And those annual subscribers that remain active will be migrated to a "discounted loyalty price" of $3.99 per month with their next renewal.Related storiesIs 'Avatar' giving you the blues?Car Tech Live 151:The best of the Detroit auto show (podcast)EMI licenses songs to new ad-supported siteOn Lego Pandora, everyone gets along just fineCarmakers, suppliers ready Sync rivalsSince the hike won't become effective until May, those people who want to get in for $3.99 per month can sign up for Pandora One before the increase.Only 3.3 million of Pandora's 250 million registered users are Pandora One subscribers; so, Pandora said this raise in fees is only affecting a small portion of its listeners.The music streaming business is becoming increasingly more competitive. Smaller companies, like Spotify and Rdio, have entered the fray, along with tech giants like Apple, Google, and even Amazon is reportedly working on its own streaming service. Despite the tough competition, Pandora is still way ahead of the pack with 31 percent of the US streaming music service market share, according to a recent survey by Edison Research.
Pandora is making a few changes to its premium streaming music service -- most notably a fee hike for new monthly subscribers.The company announced Tuesday that because of rising royalty rates it pays to musicians, it's having to up its monthly fee for the first time since Pandora One debuted in 2009. Starting in May, new members will have to pay $4.99 per month rather than the current rate of $3.99 per month."The costs of delivering this service have grown considerably," Pandora wrote in a blog post. "For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening have increased 53 percent in the last five years and will increase another 9 percent in 2015. In order to continue to provide an ad-free listening option, we are implementing some changes to the way we price Pandora One."Pandora One is the company's premium version of its steaming radio service. Initially, the service cost $36 per year and then later a $3.99 per month option was added. With this new price hike, Pandora is also getting rid of the annual option. So, users will now only have the pay-per-month option.While Pandora is increasing its price for new users, existing users that stay active can keep paying $3.99 per month. And those annual subscribers that remain active will be migrated to a "discounted loyalty price" of $3.99 per month with their next renewal.Related storiesIs 'Avatar' giving you the blues?Car Tech Live 151:The best of the Detroit auto show (podcast)EMI licenses songs to new ad-supported siteOn Lego Pandora, everyone gets along just fineCarmakers, suppliers ready Sync rivalsSince the hike won't become effective until May, those people who want to get in for $3.99 per month can sign up for Pandora One before the increase.Only 3.3 million of Pandora's 250 million registered users are Pandora One subscribers; so, Pandora said this raise in fees is only affecting a small portion of its listeners.The music streaming business is becoming increasingly more competitive. Smaller companies, like Spotify and Rdio, have entered the fray, along with tech giants like Apple, Google, and even Amazon is reportedly working on its own streaming service. Despite the tough competition, Pandora is still way ahead of the pack with 31 percent of the US streaming music service market share, according to a recent survey by Edison Research.
Could iPhone smoke the Kindle-
Could iPhone smoke the Kindle?
I'm an avid reader of digital books and for months I had my eye on the Kindle, the digital reader from Amazon, with its high-contrast screen and PC-less book downloads. Then Apple announced that the iPhone 3G goes on sale July 11.I'm now in second-guess hell. I know Apple has said nothing about offering an e-reading application for the new iPhone. But what happens if Steve Jobs later surprises us or some developer turns the iPhone into a whiz-bang electronic reader? I'll tell you what happens, my Kindle ends up on eBay.I can imagine a slick iTunes bookstore, stocked full of titles that are easy to buy and download--sort of like Amazon.com. Even if Apple decides against getting into book sales, the upgraded iPhone will be open to developers. I'm betting one has already written an e-reader application. There's a huge opportunity here for some enterprising developer. The person could write a reader application for the iPhone and then sign licensing deals with top publishers. The developer could sell digital books out of their own Web store. The pitch to the publishers would be: "I have the best way for you to get on the iPhone." Of course, if Apple, which possesses complete control over the iPhone application development program, is planning something similar down the line, then a third-party e-reader application might not pass. Last January, Jobs voiced skepticism about e-readers, telling The New York Times that people "don't read anymore." This to some is a good indication that he's interested. The iPhone offers more value than the Kindle.CNET NetworksRegardless, all of this highlights the main problem with the Kindle: it's too much of a specialty device to appeal to a mass market audience. People want more value than the Kindle offers. Sure, Amazon's e-reader is probably going to outperform the iPhone when it comes to providing a better reading experience. The Kindle features a 6-inch screen and E Ink technology, which is easier on the eyes than backlit displays.But the iPhone has all it needs to become a great digital-book reader: a 3.5-inch (diagonal) widescreen Multi-Touch display and 480-by-320 resolution. I've read close to 20 books on my Palm Pilot TX and its 3.8-inch screen is plenty big enough. Certainly, the Kindle's advantages as an e-reader aren't enough to trump the host of iPhone features: a phone on a new faster network, camera, video player, it holds photos, contacts, you can play games and there's the apps we don't know about yet. With the Kindle I get Web browsing and e-mail. When you size up bang for the buck, it's all iPhone. The 16GB iPhone 3G costs $299. Of course that doesn't include network charges. The Kindle sells for $365 and that includes free wireless. Brett Arends at The Wall Street Journal argues that if you read a lot, the Kindle can help you save money because e-books are cheaper than the paper kind. But he acknowledges that you have to buy 61 books before the device pays for itself.Pacific Crest analyst Steve Weinstein predicts that global e-book sales at Amazon could reach $2.5 billion by 2012. If he's right, I'm thinking many of those sales won't be for the Kindle. CNET News.com's Declan McCullagh and Tom Krazit contributed to this report.
I'm an avid reader of digital books and for months I had my eye on the Kindle, the digital reader from Amazon, with its high-contrast screen and PC-less book downloads. Then Apple announced that the iPhone 3G goes on sale July 11.I'm now in second-guess hell. I know Apple has said nothing about offering an e-reading application for the new iPhone. But what happens if Steve Jobs later surprises us or some developer turns the iPhone into a whiz-bang electronic reader? I'll tell you what happens, my Kindle ends up on eBay.I can imagine a slick iTunes bookstore, stocked full of titles that are easy to buy and download--sort of like Amazon.com. Even if Apple decides against getting into book sales, the upgraded iPhone will be open to developers. I'm betting one has already written an e-reader application. There's a huge opportunity here for some enterprising developer. The person could write a reader application for the iPhone and then sign licensing deals with top publishers. The developer could sell digital books out of their own Web store. The pitch to the publishers would be: "I have the best way for you to get on the iPhone." Of course, if Apple, which possesses complete control over the iPhone application development program, is planning something similar down the line, then a third-party e-reader application might not pass. Last January, Jobs voiced skepticism about e-readers, telling The New York Times that people "don't read anymore." This to some is a good indication that he's interested. The iPhone offers more value than the Kindle.CNET NetworksRegardless, all of this highlights the main problem with the Kindle: it's too much of a specialty device to appeal to a mass market audience. People want more value than the Kindle offers. Sure, Amazon's e-reader is probably going to outperform the iPhone when it comes to providing a better reading experience. The Kindle features a 6-inch screen and E Ink technology, which is easier on the eyes than backlit displays.But the iPhone has all it needs to become a great digital-book reader: a 3.5-inch (diagonal) widescreen Multi-Touch display and 480-by-320 resolution. I've read close to 20 books on my Palm Pilot TX and its 3.8-inch screen is plenty big enough. Certainly, the Kindle's advantages as an e-reader aren't enough to trump the host of iPhone features: a phone on a new faster network, camera, video player, it holds photos, contacts, you can play games and there's the apps we don't know about yet. With the Kindle I get Web browsing and e-mail. When you size up bang for the buck, it's all iPhone. The 16GB iPhone 3G costs $299. Of course that doesn't include network charges. The Kindle sells for $365 and that includes free wireless. Brett Arends at The Wall Street Journal argues that if you read a lot, the Kindle can help you save money because e-books are cheaper than the paper kind. But he acknowledges that you have to buy 61 books before the device pays for itself.Pacific Crest analyst Steve Weinstein predicts that global e-book sales at Amazon could reach $2.5 billion by 2012. If he's right, I'm thinking many of those sales won't be for the Kindle. CNET News.com's Declan McCullagh and Tom Krazit contributed to this report.
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