Tag: Apple

No gifts to bloggers

No gifts to bloggers

The FTC has released new guidelines for advertisers. One of those guidelines is that advertisers of diet products cannot have a famous (and formerly fat) person stand there and tell you that they lost 48 pounds in 48 days and you can to if you will just give them $480. Most people understand that they only thing that will lose weight in those schemes is your wallet. It is good for the FTC to demand a bit of realism there.

The FTC also says they will restrict bloggers from talking about products where they received the product or service as a gift in order to elicit the blogger’s review (favorable or unfavorable). There are some services out there that will help you get free products as long as you talk about them on your blog. I think these sites and services will be out of business soon.

For the record, I have never received a gift or any compensation for any product that I have discussed on this site.  I will regularly complain about or rave about my iPhone and its various apps. I will also complain or rave about other products and services. I have never been compensated for these products or have any relationship with the vendor.

All that being said, if Apple would like to give me a new iPhone 3GS, I would be happy to blog about it. I would include the disclaimer that Apple gave it to me for review. If Apple wants to do this, they can contact me and we will work out a deal.

ADDITIONAL UPDATE: Yes, I am aware that the government regulation on gifts to bloggers was only that the blogger must declare the gift in the process of the review. I implied above that the gifts were no longer allowed, which doesn’t appear to be the case.

Why we shouldn’t regulate venture capitalists

Why we shouldn’t regulate venture capitalists

With any downturn in the economy, there are always new rules and regulations that are discussed or passed to prevent the previous calamity from occurring again. The same is true for this latest downturn with a variety of efforts and attention being shown to the banking and mortgage industries.

Now attention is also being shown to the venture capitalists. This is not necessary. Nothing in this current downturn can have VC activity pointed to as the cause. In fact, VCs are fairly well self-regulated by the activity of the stock market and they take a sizeable set-back when the tech bubble bursts (most notably in the early part of this decade).

No VC is too big to fail and no VC has a huge majority of the market. It simply doesn’t make sense to overly regulate this industry when so much of what we enjoy on a regular basis is the result of VC activity (nearly the entire IT industry including the technology that makes this blog possible and your ability to read it).

Here are a few thoughts taken from a column at the Wall Street Journal:

Just when the economy needs risk-taking the most, risk-takers are under the most threat. The Treasury now wants venture-capital firms declared as systemic risks and put under tight restrictions as part of the broader re-regulation of financial firms. Venture capitalists argue that since they don’t use debt and their firms are comparatively small, they shouldn’t come under rules designed for highly leveraged, too-big-to-fail banks.

How this debate turns out matters, because some 20% of U.S. gross national product is created by companies that were formed through venture backing. They include Intel, Apple and Google. How policy makers treat venture capital is a measure of the amount of innovation and enterprise that happens in an economy, with more regulation leading to less innovation.

This is a tough time for venture capital, with investments by firms falling more than 50% in the second quarter. The 700 or so venture-capital firms in the U.S. are mostly small partnerships, with a modest voice in Washington. They say the industry as we know it can’t survive if firms are regulated as investment advisers, which would mean complying with rules for disclosure, compliance, record keeping and privacy designed for huge firms.

Uncertainty about which regulations applied to early-stage investing slowed the growth of venture capital. It wasn’t until deregulation in the late 1970s that the industry took off. The capital gains tax rate was cut to 28% from nearly 50% in 1978, and for the first time pension funds and other fiduciaries could include venture capital as part of an overall portfolio. During this vital period venture firms began to nourish what are today’s high-tech leaders, from information technology and the Internet to genetic research and health care.

The proposal now to tighten how venture firms operate suggests that we are in a stage of the regulatory cycle closer to the New Deal than to the entrepreneurial era that followed. Adding regulatory burdens would do nothing to help the investors in venture funds who are willing to take the big risks, knowing that about half of venture-backed companies fail. It would only increase the costs of doing business and make risk-takers more risk-averse.

No venture capital firm has asked to be bailed out, and none are too big to fail. As hard as it is for regulators to understand, the nature of venture capital is such that it should not even aspire to be a low-risk enterprise.

AT&T is whining about the iPhone

AT&T is whining about the iPhone

There is an article in the Wall Street Journal that has AT&T whining about the cost of supporting the data plans for the iPhone.  Seems that with all of the really cool apps that the iPhone has, they tend to load up on the data! I suppose AT&T’s complaints are so that they can keep offering affordable phone data packages on sites like Raise as Cricket Wireless, one of their phone package brands, is selling like hot cakes for data hungry customers.

But AT&T will just have to deal with it as the iPhone is by far the coolest product in the mobile world. It has also set the standard for all other phone developers and networks to aspire to.  No surprise, the quality of the apps is excellent (check out this site that reviews iPhone apps). Because of this, there is no way that we are going to roll back time and start to use a less flexible and featured product.

AT&T may not like it but Apple and it’s iPhone have given them first mover advantage in mobile computers.  Everyone else is trying to play catch up.  If AT&T screws it up, the competition will be all over them.

Here are portions of their article “Demands on Network Are an iPhone Hang-Up”

Users of iPhone download games, video and other Web data at two to four times the rate of other smartphone users, according to comScore. Yet AT&T charges iPhone subscribers the same fee of $30 a month for data that it levies on other smartphone customers. And aside from restricting certain activities, like file sharing, AT&T doesn’t limit how much data can be downloaded.

But Web applications popular with iPhone customers are bandwidth hogs. A recent analysis by Alcatel-Lucent of North American wireless network use during the midday hour on one day found Web browsing was consuming 32% of data-related airtime but 69% of bandwidth, while email used 30% of data airtime but only 4% of bandwidth. Email taxes network resources but in a different way.

As the proportion of customers with iPhones grows — 5.9 million 3G iPhones were activated in the last three quarters, 7.5% of AT&T’s total subscribers — the resulting growth in downloading and Web browsing will strain AT&T’s network. AT&T will need to add cell towers and spend more on the back-haul lines that connect the towers to the rest of the network.

……….

The falling cost of voice minutes and additions of lower-end customer has offset growth of text messaging and other data services. Voice and texting use little bandwidth and are lucrative.

Now, new customers are harder to come by. The question is whether new data revenues the industry is banking on — from Web-browsing and entertainment services — will be as profitable, at least as measured by return on invested capital. That looks doubtful. To ensure networks have the capacity to offer these services, particularly bandwidth-heavy offerings like video streaming, carriers will have to make heavy capital investment. Both AT&T and Verizon are building the next-generation 4G network, each spending more than $9 billion last year on new wireless spectrum, as well as $6 billion annually on overall capacity.

……….

In the short term, carriers should abandon unlimited data pricing plans. Both AT&T and Verizon Wireless already charge extra for heavy users with wirelessly connected laptops. They will have to contemplate similar strategies for smartphone users.

Setting the right price won’t be easy. With competition, the temptation to discount will be hard to avoid. And there’s no guarantee that customers will pay as much for entertainment as for voice-calling and email.

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Polaroid – a testimony to bad management

Polaroid – a testimony to bad management

Is there a brand name that is better than Polaroid?

I am sure that there is but not too many.  Coke and Pepsi come to mind.  Mac is probably more popular.  Perhaps Levi’s and Mercedes.  There may be a dozen or two others but to be honest, if someone says Polaroid you instantly know what it is: a camera that takes a picture and spits it out immediately to be enjoyed by you and others.  What a perfect idea for the US where we are known for our lack of patience and need for instant gratification.

Today, multimedia dominates the Internet and the computer industry.  The ability to interact with and use images and movies drives the sale of most computers.  In fact, a recent Apple v. PC discusses the ability of the Mac to manage volumes of digital images.

Mac VS PC Stacks

So how did a company that was synonymous with instant gratification and images fail so miserably?  Below, I have a Wall Street Journal article where the company was just auctioned off for a miserable $53M.  It was only a decade or so ago that this would have been about a week’s worth of sales!

I am sure the business schools of the world have case studies on Polaroid.  At least they should.  It is a testimony to a management that just plain messed up.  I sometimes wonder if some companies actually try to fail since they do it so well and convincingly.  GM would probably fall into this pool of companies!

I feel sorry for everyone that trusted this screwed up management.  I am sure that Mr. Land has been rolling over in his grave so much that his skeleton is likely is ground to dust.  Rest in peace, Mr. Land.  Hopefully the new owners of this icon will do better and preserve your legacy.

Private-equity firm Patriarch Partners LLC bested other bidders in a court auction to buy Polaroid Corp.’s assets out of bankruptcy for $52.7 million in cash and stock.

A Patriarch-controlled holding company will acquire Polaroid’s assets, including the Minnetonka, Minn., company’s intellectual property, name and brand, according to papers filed Thursday with the U.S. Bankruptcy Court in
Minneapolis.

Patriarch offered $44.9 million in cash and a 12% stake in the newly formed company, which will hold Polaroid’s assets. That proposal topped lead bidder Genii Capital S.A., which offered $42 million for the company that invented instant photography.

“We look forward to reconnecting Polaroid with its history of innovation in photography,” Patriarch Chief Executive Lynn Tilton said in a statement. “We intend to continue rebuilding the brand of this great American company on a worldwide scale.”

Patriarch intends to position Polaroid as the “leading brand in digital instant photography,” and will continue to sell other consumer electronics under the brand name.

A hearing to approve the sale is scheduled for Monday.

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RANT! Be careful buying iPod Touch from BestBuy

RANT! Be careful buying iPod Touch from BestBuy

My 3 teenagers have all purchased the iPod Touch from BestBuy.  Actually, the youngest one just received his as a birthday gift and that is what is prompting this rant.

There are a variety of gadget sites that talk about the deals available at BestBuy (see here and here). The forums are split as to buying the warranty (here and here) but Apple doesn’t have a great track record on iPods and the BestBuy warranty has replaced 3 separate iPods for my family over the years so we think it is a good deal.

So when my youngest son wanted a new iPod Touch to replace his nano, it was natural for us to go to BestBuy. He was ecstatic when he opened the gift and it was plugged into the family computer within minutes.  Imagine his disappointment when his brand new Touch had pre-2.0 software on it and iTunes wanted him to upgrade for only $9.95!  This OS upgrade was announced almost a year ago.

I wouldn’t have been too upset except for four issues:

  1. this same thing happened when my daughter bought her iPod Touch 9 months ago and we had to fight BestBuy for a resolution
  2. if we had bought the unit from Apple, it would have had the latest software (according to the Apple customer support person when we dealt with this issue on my daughter’s iPod)
  3. because of the experience with my daughter’s iPod, we had asked the BestBuy sales person upon purchase if it had the latest OS and was assured that it did (I am not sure why I trust a young man that still is suffering from teenage acne though)
  4. the rude treatment that I received on the BestBuy support call

I have already written to BestBuy complaining about their support call as well as their shady service.  But they don’t get off that easy.  I am also going to complain here.

I have no quibbles about the software not being up to date for a product that is shrinkwrapped and unopened.  I fully understand that BestBuy is buying their Apple products by the truckload (or container load) and that some of these may sit on the shelf past an upgrade.  However, they should be clearly marked as having the old OS and there should be an automatic coupon printed at the time of purchase to allow the consumer to upgrade the unit. The unsuspecting consumer should not be penalized for BestBuy getting a great deal from Apple because they bought a million iPods at once.

I almost wonder if this is a plan by Apple and BestBuy to lure some unsuspecting consumers to pay for the upgrade to the new OS even though they are legally entitled to that upgrade for free.

So what was the resolution?  The same as it was for my daughter’s iPod.  I called BestBuy, complained, and told them we would be returning the unit if they didn’t make this right.  After a bit of grief that was inexcusable for customer service rep, they promised to send me a $10 BestBuy card to cover the out of pocket cost for the upgrade.

BESTBUY SHOULD AUTOMATICALLY GIVE OUT COUPONS TO COVER THE COST OF UPGRADING TO THE CURRENT VERSION OF OPERATING SYSTEM!

Lesson learned for any readers out there: check the OS on your iPod Touch that was recently purchased from BestBuy. If you need to upgrade to a current OS then call BestBuy for a gift card to cover the cost.  Don’t pay for the upgrade yourself!

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Groups (categories) in your iPhone

Groups (categories) in your iPhone

This may be incredibly obvious to everyone else but I have wanted to do a better job of managing my contacts on my iPhone.  When I used Windows Mobile, I could put categories on my contacts in Outlook and those categories meant something on the phone as well.  The iPhone doesn’t support categories so all my contacts (approaching 1000 at this writing) were in one big list.

I did a little experiment and found out that the Groups function on your iPhone includes not only your Global Address Book from your company, but also any sub-folders of your Contacts on the Exchange server.  This way you can divide different types of contacts (work, customers, family, vendors, etc. into different Contact folders on your server and they appear correctly on your phone.

Here is a screen shot of my folders in Exchange:

Clip1

and here is a screen shot of the Groups on my iPhone.

photo

To make the sub-folders available to you when you are addressing email or looking for contact details, in Outlook go to Tools|Address Book and then do Tools|Options in the Address Book.  This will let you change your search preferences on the different Contact folders that you have available (including your Global Address Book from your Exchange server).

Hope this helps!  I solved one of my problems.

I am done with this topic for now but I reserve the right to rant more on it someday.

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