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| Tuesday, August 31, 2004 |
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Commentary: Apple's missed opportunity
By Forrester Research
Special to CNET News.com
August 31, 2004, 1:00PM PT
By Paul Jackson, senior analyst
With its new iMac G5, Apple Computer has once again come up with a unique package of design, power and ease of use. But will it be enough?
No. Apple has missed the opportunity to stay way ahead of its PC manufacturing competitors by not including Wi-Fi as standard and by failing to catch the early-adopter personal video recorder wave by including a TV tuner card.
At Apple Expo Paris on Tuesday, Philip Schiller, Apple's senior vice president of worldwide product marketing, unveiled the iMac G5.
Gone are the angle poise arm and spherical base station; in comes the world's thinnest all-in-one desktop PC, mounted on an aluminum standard similar to the new Apple Cinema Displays. This brand-new design aims to build on the success of the previous iterations--which have sold 7.5 million units over the past six years--and draw in the emerging iPod generation.
The three new iMac G5 models have these points in their favor:
• They're the world's most minimal-looking home computers. By integrating all of the PC components, ports, media drives and even speakers into the 2-inch-thick display unit, Apple has created a design so simple that adding accessories like external hard disks and broadband modems risks ruining the smooth lines. By borrowing design elements from the iPod--Jonathan Ives designed both--these machines are designed to sit in a living room and be admired.
• They benefit from a considerable increase in processor power. By using 1.6GHz and 1.8GHz G5 processors, Apple engineers have created a machine capable of coping with demanding digital hub tasks, such as tackling consumers' increasing usage of digital audio, photo and video content. (U.S. broadband households are three times more likely than U.S. dial-up households to download music or videos or listen to streaming audio.)
• They're not as expensive as you might imagine. Starting at $1,299, the respectably equipped entry model of the new iMac range is considerably cheaper than the older 17-inch G4 machine, which was priced at about $1,799. This puts the machine more on a par with tricked-out Windows home PCs.
Where Apple stopped short
This iMac is not as genre-defining as previous iterations have been--in fact, it misses a couple of the tricks Media Center PCs can already do.
• Where is the connectivity to support bottom-up home networking? While Apple does great business in selling AirPort cards and AirPort Extreme Wi-Fi base stations, this should not have stopped it from building Wi-Fi directly into every new iMac--even Bluetooth would have been a start.
Better still would have been a software option to turn this machine into a full Wi-Fi access point: Intel's Grantsdale chipset already promises this functionality for PC owners. The lack of this connectivity means that Apple has missed an opportunity to build on its AirPort Express foundations and rule the roost in bottom-up networking.
• Would including a TV tuner card have broken the bank? Digital video recorder functionality is becoming increasingly interesting to technology-literate consumers; TiVo in the United States and Sky+ in the United Kingdom are redefining how people consume TV programming.
Furthermore, Microsoft is forging ahead with its Windows XP Media Center Edition, looking to build on lessons from the past year. In the new iMac, Apple presents us with a fabulous living-room-compatible unit with an excellent display and lots of storage designed for digital media--but doesn't allow for connectivity to the broadcast network.
Sure, you can add an inexpensive box to do this, but you then ruin the sleek all-in-one design, which is what makes this machine so desirable.
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| posted by Perimbean @ 10:00 PM |
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New iMac Design Looks Better for Business
By David Coursey
August 31, 2004
Opinion: The integrated system unit looks more at home on the business desktop, but the iMac G5's pricing is nothing special—and why aren't the wires pictured?
It's always fun to watch a computer company swinging in the breeze, trying to explain itself. Specifically, I'm talking about those occasions when it becomes necessary to convince customers that what they were once told was right was actually wrong, and that the new reality—hardware, software, whatever—is what's really right.
Microsoft does this all the time, given the breadth of its product line and its role as its own biggest competitor. But today, we turn our attention to Apple Computer and its decision to bail on the current "table lamp" form factor for its new iMacs. The base-stalk-screen design has given way to an integrated system unit and LCD perched atop a sleek, metal, L-bracket base.
Apple is the only PC manufacturer to have really done well with integrated designs, combining the display and system unit into one piece. For most of its history, back to the original Mac, Apple has offered a one-piece. This year's redesign replaces something odd-looking with something that looks like it actually belongs on a desk.
Perhaps this is a sign that Apple intends to sell more desktops to businesses, though it's just as likely, probably more so, that disappointing sales of the previous model prompted the change. The new design is very reminiscent of the "anniversary" Mac that came out a number of years ago. It used the same basic form factor as the new model, looking like a laptop turned into a desktop (which is what it happened to be).
Looking at Apple's glamour photography of the new machine, you might catch yourself ooohing and aaahing before asking an important question: Where are the keyboard and mouse? They don't appear in many of Apple's marketing materials, and I've yet to find a picture that includes the standard keyboard and mouse, along with the wires that attach them to the computer.
Bluetooth is not a standard part of these machines, so Apple's cordless keyboard and mouse aren't, either. I understand doing this to keep prices lower for people who don't want cordless—saving $100. But if Apple is going to play these tricks, at least one of the easy-to-find pics should show this handsome computer with ugly wires dangling from it.
In fact, the low-end model would have a keyboard, a power cable, a network cable, and perhaps cables for an iPod and iSight camera dangling from the back. Sure, the machine looks sleek in the pics—though a bit tippy, if you ask me—but it won't look nearly so good on your desktop. You can, however, reduce the wire count by one if you invest $79 in an 802.11 AirPort card for the machine.
I also wonder whether the built-in speakers—not being in Paris at Apple Expo, I haven't heard them—are sufficient or whether outboard speakers will be necessary, adding more wires and taking up more desktop space.
The pricing for the new models is OK, but nothing to write home about. The low-end model, starting at $1,299, quickly became an $1,800 model by the time I added memory, more hard drive space, wireless networking and a Bluetooth keyboard. This is a good value, I think, but most Windows users will see it as an expensive, underpowered machine.
The underpowered part isn't true; it's just that Mac gigahertz and Windows gigahertz don't mean the same thing. The new iMacs run at 1.6 GHz and 1.8 GHz, which seems slow compared with many consumer Windows boxes. In actual performance, the Mac does just fine, but you have to see this in person or trust reviewers for it to make sense.
Overall, the new iMac is better-looking than the old one, though not as good-looking as Apple wants you to believe. It looks more at home on business desktops, which is a significant improvement, and the processor bump to G5 is certainly welcome. Perhaps people who were turned off by the previous design are ready to part with their dollars now.
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| posted by Perimbean @ 6:00 PM |
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| Thursday, August 19, 2004 |
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Apple recalls overheating batteries
By John G. Spooner
Staff Writer, CNET News.com
Apple Computer is recalling about 28,000 batteries that shipped this year in its PowerBook G4 portable computers.
The Mac maker said in a statement issued with the U.S. Consumer Product Safety Commission on Thursday that the batteries could overheat. It pledged to replace the batteries, which were installed in 15-inch models of the PowerBook G4 bought between January and August of this year. The batteries were also sold separately.
Apple said it had received four reports of the batteries overheating. It determined that the source of the problem, which it said could pose a fire hazard, was a short circuit inside the batteries, manufactured by LG Chem of South Korea. Although the PC maker has not received any report of injuries, it advised owners of PowerBook G4s with the recalled batteries to discontinue using their machines.
The batteries in question carry the model number A1045 and serial numbers that begin with HQ404, HQ405, HQ406, HQ407 or HQ408. Those numbers are printed on a label on the bottom of the battery, Apple said.
The Cupertino, Calif.-based computer maker advised customers with the batteries to contact it for a free replacement. It can be reached via phone at (800) 275-2273 or via its Apple.com Web site. It has also created a special battery exchange page on its customer support Web site.
Given the tens of millions of notebooks that ship every year, recalls related to batteries or charging systems are fairly rare. Manufacturers do find problems on occasion, however. In 2001, for example, Dell recalled about 284,000 Inspiron notebook batteries and Apple recalled 570,000 PowerBook G3 power adapters.
No other PowerBook or iBook batteries are involved in the battery recall, Apple said.
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| posted by Perimbean @ 7:00 PM |
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Apple zombies attack RealNetworks
Steve Jobs' mob says kill
By Nick Farrell: Thursday 19 August 2004, 06:38
REALNETWORKS' attempt to get Steve Jobs to open up its proprietary eyePods is getting attacked by Apple's fanatical supporters.
RealNetworks has adopted elements of Apple's FairPlay code which allows songs bought from the RealPlayer Music Store to be played on the iPod. Real also launched a petition calling on Apple to stop using its monopoly powers of the music biz to stifle competition.
The petition had about 900 signatures but was scuppered by the many comments left by angry Apple users who are clearly hardwired to its PR department through their iPods.
The general theme of the objections is that Apple users do not want choice foisted upon them by RealNetworks.
As one user said: "If we wanted 'choices' like yours, they wouldn't have to be foisted on us. Most of us, given a real choice, would rather see you and your tactics go away. 'Competition' doesn't give you any right to reverse-engineer when you feel like it, but come down on those that hack into your IP rights. It's theft, pure and simple."
A Vole spinster could not have put it any better. People do not want choice, they just want ethical standards and a single product they know and love. However Realnetworks is not forcing iPod users to use its service, it claims it is just providing competition for Apple.
Other people filing comments make the very good point that RealNetworks was hypocritical to demand Apple free up its iPods when its own Rhapsody song shop doesn't support Macs.
The petition was soon taken down and replaced with a comments box, but Apple Zombies insisted on posting joke names and saying Real sucks a lot.
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| posted by Perimbean @ 2:00 PM |
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| Wednesday, August 18, 2004 |
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Report: Apple G5 chips scarce
By Graeme Wearden
CNET News.com
August 18, 2004, 11:09 AM PT
Apple Computer may be facing greater difficulties than previously thought in getting hold of chips to power its high-end personal computers.
According to a report on Forbes, financial company Prudential Equity Group reported this week that the availability of G5 processors for Apple could be "worse than anticipated."
These chips are supplied by IBM and used in the PowerMac G5. They will also power the forthcoming iMac G5. Apple had previously said that 1.8GHz and 2GHz G5 chips would be in short supply in July, due to manufacturing problems at IBM, but that availability would recover in August.
"We now believe that IBM may be having difficulty meeting its revised supply commitments," said Prudential Equity Group, which reportedly fears that these additional delays could affect Apple's earnings if the launch of the iMac G5 is delayed.
Neither Apple nor IBM responded to requests for comment at the time of writing.
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| posted by Perimbean @ 6:00 PM |
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Wall Street Mixed on Apple, Worries About G5 Delays
By Blane Warrene
MacNewsWorld
08/18/04 11:59 AM PT
Analyst concerns about Apple include market saturation, an issue shared among PC makers who now depend on computer replacement cycles for profit growth. Analysts also expressed concern about a nagging supply and demand imbalance for G5 PowerPC processors.
A flurry of ratings for Apple (Nasdaq: AAPL) were released overnight and this morning by Wall Street firms, among them Credit Suisse First Boston, UBS and Piper Jaffray.
The ratings were for outperform, neutral and buy -- showing a lack of concurrence on outlook for the Macintosh computer maker. Apple's stock closed at US$30.87 on Tuesday and this morning was trading up a few percent around 31.54, about 9 percent off of its 52-week high of 34.19, achieved on June 28.
Apple has a current market capitalization of more than $11 billion and is suggested to have several billion dollars in cash on hand.
Supply and Demand
Analyst concerns about Apple include market saturation, an issue shared among PC makers who now depend on computer-replacement cycles for profit growth. Analysts also expressed concern about a nagging supply and demand imbalance for G5 PowerPC processors.
UBS analysts suggested concern about continued lagging production by IBM (NYSE: IBM) of the G5 processor could linger into early 2005, and if a forthcoming G5 iMac is widely adopted, buyers could experience inventory shortages.
In its most recent filling with the Securities and Exchange Commission (10-Q filed 8-5-04), Apple was very public in discussing restraints on its computer sales due to IBM supply-chain problems, writing, "Although Power Macintosh sales have increased from the prior year, sales of this product were constrained in the fourth quarter of fiscal 2004 due to manufacturing problems at IBM, sole supplier of the G5 processor."
Closed Mouth on Issues
Representatives of Apple and IBM did not respond to requests for comment.
Also, industry analysts familiar with Apple appeared to be following an Apple tradition, having little to say for the record on the issue.
Still, one Cupertino-watcher said he believes that new G5 iMacs could positively impact Apple financially, especially if they break new design molds.
Unconfirmed reports have surfaced in the Macintosh community that the new G5 iMac might be a totally new "headless" design, with PC hardware integrated into a flat panel display, doing away with the current goose neck models.
New Music Portfolio
Most analysts say Apple's newfound market leadership in digital music shores up any potential slip in desktop sales. The iPod and iTunes Music store showed surges in unit sales and profitability in its most recent financial reporting.
With Apple showing increased sales in successive quarters across a majority of its product line, excepting existing iMacs (no longer being produced), the company might not be especially concerned about today's ratings.
For now, early adopters salivating for a new G5 iMac will have to wait to see if production issues are resolved in time for an expected release in conjunction with Apple Expo Paris at the end of this month.
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| posted by Perimbean @ 5:45 PM |
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| Friday, August 13, 2004 |
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'DVD Jon' Cracks Apple's Music Streaming Code
SAN JOSE, Calif. -- "DVD Jon," the man who cracked the code that keeps DVDs from being copied, has done it again.
Norwegian hacker Jon Johansen says he has broken the electronic locks on Apple Computer's wireless music streaming technology, known as AirPort Express.
Johansen has released a software key that lets users broadcast digital music from Apple's online iTunes Music Store to a stereo that isn't plugged into a computer.
He also created a way for people to stream music to an AirPort Express base station without using Apple's iTunes software.
AirPort Express came out earlier this year.
It's the third time he has managed a work-around to Apple's music copy-protection technologies.
His latest creation is posted on his Web site, which is named "So Sue Me."
Last year, a Norwegian court ruled that Johansen could not be prosecuted for breaking the DVD codes. |
| posted by Perimbean @ 10:00 AM |
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| Wednesday, August 11, 2004 |
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Apple launches graphics software, video bundle
[Los Angeles | Reuters News Service, 11 August 2004] - Apple Computer yesterday began shipping a new program designed to let users create real-time motion graphics and unveiled a discount video-editing software bundle featuring its flagship Final Cut Pro software.
Motion, first introduced earlier this year at a broadcasting convention, costs $299. The Production Suite, which includes Final Cut Pro HD, Motion and DVD Studio Pro 3, sells for $1 299.
Speaking at the SIGGRAPH computer graphics show here, Apple executives said the production bundle, with an effective $500 discount, is designed to get people already paying $999 for Final Cut to upgrade to a more comprehensive package.
While SIGGRAPH has traditionally been the domain of high-end professional graphics companies and researchers who think years ahead of the market, graphics production technology has steadily gone more mass-market. |
| posted by Perimbean @ 8:00 PM |
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| Tuesday, August 10, 2004 |
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OS X security update defuses PNG exploit
AUGUST 10, 2004 (MACCENTRAL) - In addition to Mac OS X v10.3.5, Apple Computer Inc. yesterday released Security Update 2004-08-09, which corrects a recently identified issue related to a library used to show PNG format graphics. The library is used on several computing platforms and by several applications, including Apple's own Safari Web browser.
Apple provided only cursory information with this security update, but indicated that Security Update 2004-08-09 contains an updated libpng library.
The independent security researcher who identified the problem said that under certain circumstances, a hacker could use the exploit to compromise the security of a system through graphical e-mail clients, and Web browsers can be made to crash when viewing affected PNG images.
More information about the exploit itself is available online.
The new security update is available for download through the Software Update system preferences pane. If users have already applied the 10.3.5 update to their Mac, they will not see the security update separately -- it's already integrated into Mac OS X v10.3.5.
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| posted by Perimbean @ 11:45 PM |
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Apple updates Mac OS X to 10.3.5
By Tony Smith
Published Tuesday 10th August 2004 09:59 GMT
Apple has released the latest Mac OS X update, taking the operating system to version 10.3.5.
It has also patched a hole in the OS' code for handling PNG graphics files.
Mac OS X 10.3.5 improves on its predecessors with improvements to the OS' Bluetooth code for better data transfer performance and its graphics drivers for ATI and Nvidia chips.
The update also touches on the OS' font handling, its compatibility with external Firewire and USB devices, its support for NTFS formatted volumes and how it handles remote login and home directory mounting.
Safari now handles GIF files better, while Mail mailbox renaming is possible without potential data loss. Image Capture, the OS' digital camera and scanner control software, can now pull across MPEG 4 video files. Various 10.3.4 issues surrounding PowerBook and iBook audio - both in and out - have been fixed too, Apple said.
Most importantly, the update provides a new version of libpng, the operating system's library of routines for dealing with PNG (Portable Network Graphics) files. The update now prevents the buffer overflow attacks that could open the Mac OS - and other operating systems that support PNG - to malware.
Apple also made this fix available as a separate update for both Mac OS X 10.3 and 10.2.8, for Mac users who have yet to upgrade to Panther.
All the updates are available through Mac OS X's Software Update facility - look in System Preferences - or as standalone downloads.
Apple is offering a full update, that takes any version of Mac OS 10.3 to 10.3.5. You can get it here, but it's an 88MB download. The smaller (43MB) 'delta' update, which only upgrades 10.3.4 to 10.3.5, is available here.
Both releases include the latest Security Update, which is also available as a standalone install for Mac OS X 10.2.8 here and Mac OS X 10.3.5 here.
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| posted by Perimbean @ 5:00 PM |
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| Monday, August 09, 2004 |
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Harmony sparks dissent
Consumers buying music from the Internet can download it only from select online stores for now. But Real Networks is seeking to change this with some new software, a note that isn't well-received. More on the scene.
EVERY time we buy a CD, do we really worry about whether it will work on our music systems? We don't. Globally-accepted standards in digital storage of music CDs and DVDs make sure that regardless of the make of our music systems, they will work.
But those who buy music from the Internet don't enjoy such peace of mind yet, since each service provider has his own choice of audio compression format that runs only on a particular music device. So a user is, in a way, tied down to a particular online music store.
Take the instance of iPod, the most popular portable music device from Apple Computers. It plays only songs downloaded from the company's online music store iTunes. Apple uses a format called Advance Audio Coding (AAC), fortified by its Fairplay digital rights management (DRM) system, to encrypt songs in the iTunes store.
Now, a new software announced by RealNetworks seeks to do away with the incompatibilities that exist in the world of digital music. RealNetworks claimed recently that its Harmony Technology is the world's `first DRM translation system' that enables users to play music purchased from anywhere on more than 70 devices, including Apple's iPod.
"Now anyone can buy music, move it to their favourite portable device, and it will just work, just like the way DVD and CDs work," said Rob Glaser, Founder and Chief Executive Officer, RealNetworks, after unveiling the software. "Before Harmony, consumers buying digital music got locked into a specific kind of portable player. Harmony changes all that."
The attempt by Real to bring about compatibility in the music world by getting around technology issues is bound to be contentious as Apple has already come out with strong statements against the company. Apple has accused RealNetworks of adopting "the tactics and ethics of a hacker to break into the iPod," while developing the Harmony.
Apple has said it is investigating whether RealNetworks violated the Digital Millennium Copyright Act and other intellectual property rules and has also indicated it will make the future versions of iPod incompatible with Harmony. So another battle is brewing in the digital world.
Online music has now evolved to the status of an industry in itself from the days of files `popularised' by Napster. And this explains why Apple is so cut up over the move by RealNetworks. According to a study by Jupiter Research, digital music sales will reach $270 million in 2004, and by 2009, will reach the size of $1.7 billion, accounting for 12 per cent of consumer spending on music.
Jupiter also expects revenues from digital subscription to outpace the same from digital downloads. As for devices, it is estimated that MP3 players will grow at over 50 per cent in this year to more than five million units in the US alone.
Apple, the most successful company in the digital music business so far, has sold four million iPods and over 100 million tracks from iTunes. The company recently entered into a deal with mobile phone maker, Motorola to make iTunes compatible with Motorola handsets.
RealNetworks has boosted its revenues thanks to its growing subscriber base.
In the second quarter of this year, it added one lakh new subscribers to take the total user base to over 5.50 lakh. New players such as eBay too are testing out its own digital music store, realising the business potential.
Naturally, nobody wants to be relaxed in the business of music. |
| posted by Perimbean @ 10:30 AM |
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| Saturday, August 07, 2004 |
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Virgin demands Apple license iTunes DRM
By Tony Smith
VirginMega - the Virgin Group's French online music joint venture with media company Lagardère - has claimed that Apple is guilty of anti-competitive behaviour by refusing to licence the iTunes Music Store's FairPlay DRM technology.
Apple's opponent has formally asked France's competition watchdog to rule that the iPod maker has abused its dominant market position by not allowing other companies access to FairPlay.
VirginMega uses Windows' audio and DRM technology - it's supplied by OD2/Loudeye - which isn't supported by the iPod. Since Apple won't build WMA compatibility into the iPod, Virgin wants Apple to license FairPlay so it can incorporate the technology into the tracks it sells, making the iPod-compatible.
It approached Apple early in June, ahead of the launch of the three European iTunes Music Stores, with just such a request.
Rebuffed by Apple, the company wants the French government to force Apple to license FairPlay. A hearing to consider VirginMega's demands is expected to be convened in October or November.
Apple is guarding FairPlay jealously, to protect its small but growing ITMS revenues. Last month, it reached an agreement with Motorola which will see it developing a version of iTunes for the bigger company's mobile phones.
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| posted by Perimbean @ 4:00 PM |
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| Friday, August 06, 2004 |
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Apple or Sony?
NEW YORK As the sappy pop song of yore goes, I’m torn between two lovers. I have a trusted Sony TV and a sleek Apple Webcam. I have gone between a Sony Vaio notebook computer and an Apple PowerBook laptop. I use Apple’s canny iPhoto software with my compact Sony digital camera.
But most importantly right now, I have a Sony MiniDisc player and an Apple iPod. Both companies are vying for me to strike my digital musical allegiance with them, in a brand war that each is staking its future on.
Clearly, I am a sucker for a good-looking, high-quality machine. I get my Sony affliction from my father, who adored his Trinitron color TV in the 1970s. The Apple habit came from my own appreciation of the iMac’s predecessor, the all-in-one-box Macintosh Classic.
We all have our idiosyncrasies. In my case, while visiting New York City this week, I made a point of visiting both the Sony Wonder Technology Lab exhibit in midtown and the landmark Apple store in SoHo. Souvenirs of my trip will include purchases of a Sony digital voice recorder and an Apple Airport Express wireless base station.
Okay, so now you can fathom the depths of my disease. I’m locked in the arms of not just one but two of the most creative, innovative and design- and marketing-savvy technology companies in the world.
The perennial rumors, always denied, of a Sony-Apple merger only demonstrate how closely allied their visions for consumer electronics are.
Now, with both Sony and Apple heavily touting their digital music offerings, how am I going to choose? And that is the major problem of Internet music commerce today: You almost certainly have to choose.
In an effort to lock consumers in to one brand, companies like Apple and Sony have made their systems incompatible with others outside of their ‘‘walled gardens.’’
A song purchased from the iTunes Music Store cannot be copied over to a portable Sony digital player to be savored on the go, for instance (one reason why Apple is so irritated that RealNetworks, another rival in digital music, last week arranged things so that it can play iTunes songs).
For obsessive early adopters like me, there is a lot to be said for the proverbial ‘‘first-mover advantage’’ in the corporate world. I signed up with the iTunes Music Store as early as I could, which much later led me to purchase an iPod.
Even though I already had a Sony MiniDisc player, which does a lot of the same things as an iPod (but also records), at the time Sony didn’t have an online music store, so I went with what has become the digital music market leader. Score one for Apple.
Now Sony has a full complement of digital tools — software, hardware and content — and by happenstance, I already have some of the pieces.
But Apple has such a wide lead that there’s not much reason to switch — today, that is. So far, the company has not missed a beat, Windowizing its digital jukebox software, expanding the features of its Internet store to include things like Billboard’s greatest hits from each year and churning out better iPod players.
But Apple, while scoring a survey-leading 24 percent gain this year in Interbrand’s assessment of the world’s most valuable brands, is still no Sony, remaining a fraction of the size and scope of the Japanese giant.
Already, Sony is reporting higher-than-forecast demand for its new digital music players. And Apple has long disavowed any interest in Sony’s other businesses, like mobile phones, video and recording — you can record to some iPods, but only with a third-party adapter — leaving Sony an open field.
I’m not placing bets on the long-term victor. Apple has floundered too many times in its history to be counted on, even now. And Sony, No. 20 in the global brand survey, could succeed, somewhat like Microsoft, on sheer size and momentum.
Still, in the short term, I’m grateful to be courted by such talented and clever gadgeteers. |
| posted by Perimbean @ 12:00 AM |
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| Wednesday, August 04, 2004 |
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Ipod's illegal in Australia
But no-one seems to care
By Nick Farrell: Wednesday 04 August 2004, 08:22
COPYING MUSIC to Apple’s wonderfully designed digital juke box, the Ipod, is illegal in Australia, according to legal experts.
Apparently while the US and the UK have a semblance of a fair use copyright law, Australia doesn’t and anyone who has copied songs from a CD onto an iPod or computer hard drive has fallen foul of the law. According to the Sydney Morning Herald more than 100,000 Australians listen to music on such digital music players. So that is a lot of potential convicts.
The Australian Inspector Hacker of the Yard has not exactly been rushing to finger the collar of the pirates. In fact so far he has been metaphorically been leaning on a lamp post, swinging his truncheon and whistling, as the countless lawbreakers walk by with their MP3 swag.
A police spokesman said that it was unlikely that the Australian Federal Police would investigate individuals for offences such as illegally copying a CD… yet. The truth is that no-one has officially made a complaint. |
| posted by Perimbean @ 5:13 PM |
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Apple's control-freak tendencies could crush iPod
The past couple of years, Apple Computer CEO Steve Jobs has gotten nothing but roses and kisses from the public and the media.
But a feud between Apple and RealNetworks over music downloads is exposing Jobs' tragic flaw. Amazingly, he seems to be making the same devastating mistakes with the iPod that he made with the Mac 20 years ago.
Given the subject, it's only fitting to put the situation to music, so here's part of the story to the tune of the old hit American Pie:
Long, long time ago/ I can still remember how Steve Jobs made us smile
He knew the Mac was truly great;/ it trumped that DOS made by Bill Gates
And dominated PCs for a while.
But '85 in retrospect/ looks like a case of gross neglect
Bad news of a crisis;/ the Mac, Jobs wouldn't license
I can't remember if I cried/ as I watched Apple's business slide
Too bad those lessons weren't applied/ The day the iPod died
So bye, bye to the Pod with an i
We'll use Real or just steal, swapping files on the fly
The Apple faithful might continue to buy
Singing, iPod has such elegant lines.
But iPod has such elegant lines.
The iPod has half the digital music player market, and iTunes sells 70% of all legitimate music downloads. Jobs practically willed the digital music business into being. (Jobs, by the way, just had cancer surgery. He says he is OK and expects to fully recover. He also says he'll be back to work in September.)
But Jobs has blown it before — and, boy, does it look like he's blowing it again. It's like some Shakespearean drama where the lead character both triumphs and is undone by the same powerful characteristic — in Jobs' case, his evangelical fervor about his technology.
Go back, for a moment, to 1984. While hard to imagine now, Jobs was so powerful, he could call Gates and order him to come to Apple's headquarters so Jobs could yell at the Microsoft co-founder — and Gates would go! Apple had the best technology in personal computing and a major market share.
But around 1985, Jobs and his executives decided not to license Apple's technology or operating system to any other company. Apple wanted total control. It wanted to sell all the products itself. It wanted no competitors.
This was a yawning opening for Microsoft, Intel and the PC. Since anyone could buy the licenses and components to make a Windows-based PC, that technology took wing.
"Apple could have reaped the benefits of having dozens, even hundreds of imitators all adding their own unique value to the Mac," wrote Jim Carlton in his 1997 book, Apple: The Inside Story of Intrigue, Egomania, and Business Blunders. "Legions of suppliers would have sprung up all around the world to furnish components such as disk drives and memory. And since the software was light-years ahead of everybody else's, the Mac's, not Windows, might have come to dominate the personal computer market."
Instead, the opposite happened for Apple, and the PC crowd took advantage of those kinds of economics. This year, Apple is left with less than 4% of the market for personal computers — basically a cult following.
More recently, Jobs has done for digital music what he once did for personal computing: He's made it appealing to non-techies. Once again, his design sets the pace. No device is as good as the iPod; no software solution works better than iTunes.
But like the Mac of 1985, it's a closed system. Other than open-source MP3 files, only music downloaded through iTunes will play on iPods, and iTunes music won't play on any portable device except an iPod. Apple refuses to license the technology to third parties. Instead of setting a standard for all, Apple wants to own it all. When Microsoft behaves that way, everybody screams antitrust.
Last week, Real publicly exposed Apple's obduracy. Real announced that it has a way for people to legally download and play songs that work on both Apple's products and Windows-based products. It's the kind of flexibility consumers want. But Apple doesn't seem to care.
"Consumers are not in the end going to put up with being locked in," says Josh Bernoff, consumer tech analyst at Forrester Research.
Music has a long history of competing standards in new technology, but the split never lasts. In 1950, it was RCA Victor's 45 rpm record vs. Columbia's 33, and eventually all record players accommodated both. In 1970, it was Philips' audio cassette vs. the eight-track — invented by William Powell Lear, who also created the Learjet. The eight-track soon disappeared.
Apple can't win by keeping its music technology to itself.
"Apple is behaving stupidly as usual with regard to allowing other companies to add value to its products," says Avram Miller, a tech investor and former vice president at Intel, which benefited greatly from Jobs' past mistakes. "It can only lead to reducing (Apple's) share of the market it helped create."
Just as it happened with PCs, other digital music products will narrow Apple's technology lead. Maybe those products will never be as good as Apple's, but they'll become good enough — and they'll be based on broader standards that don't lock in users, and they'll probably be cheaper.
If history is any guide, when that happens Apple's share of digital music will leach away.
Miller, also an accomplished musician, goes on to call Apple "the Singapore of computing."
You know Singapore: autocratic, insular, elegantly engineered, repressively controlled — and destined to never amount to more than a small but interesting dot on the world map. |
| posted by Perimbean @ 12:35 AM |
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| Tuesday, August 03, 2004 |
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Apple versus RealNetworks: A lawyer's perspective
August 03, 2004 11:25 am ET
Will Apple Computer Inc.'s dispute with RealNetworks Inc. over RealNetworks' new Harmony technology have to be settled in court? One lawyer said that Apple has available several legal avenues, each with potential risks for Apple and the burgeoning digital music market.
RealNetworks last week introduced Harmony, a technology that allows users of the Real Music Store to download their files onto an Apple iPod, a space Apple has strongly defended for its own music store files. Apple responded, saying that Real's efforts were the "tactics and ethics of a hacker."
Apple also cautioned Real that they were investigating the ramifications of the software under the Digital Millennium Copyright Act (DMCA), legislation enacted in 1998 that extended American copyright law to cover digital content. Real claims that they did not violate any laws under the DMCA and said, "consumers, and not Apple, should be the ones choosing what music goes on their iPod."
"What they [RealNetworks] are doing is a huge risk, there is no doubt about that," Scott Culpepper, a partner at Atlanta-based law firm Thomas, Kayden, Horstemeyer & Risley, told MacCentral. "I would suspect Apple will file some type of legal action against them -- I'd be very surprised if they don't.
"It depends on what [RealNetworks] did -- there are several avenues that Apple may have," said Culpepper. The DMCA, general copyright law, and Apple's own license for iTunes all come into play.
DMCA not a sure thing for Apple
Culpepper, who specializes in copyright, patent and DMCA law says that the DMCA provides a prohibition against attempts to circumvent Digital Rights Management (DRM) software. This could be an avenue for Apple, but it depends on how RealNetworks managed to get their software to work with the Apple's DRM.
"If in the process of developing their system RealNetworks actually circumvented the [DRM] scheme, then perhaps there is some remedy for Apple under the DMCA," said Culpepper.
There are provisions under the DMCA that allow software developers to make sure their products are interoperable with others' software. This, according to Culpepper, is one way that Real could potentially win if Apple uses the DMCA in a lawsuit.
"There may be some outs for RealNetworks under the DMCA," said Culpepper. "If they went in and reverse engineered Apple's DRM, [RealNetworks] could argue that they did that to make sure their own software is compatible with Apple's. And that is a valid argument. Now, is that going to fly under the DMCA? We just don't know."
However, RealNetworks has publicly stated that they did not reverse engineer FairPlay, Apple's Digital Rights Management system.
"What we did was not reverse engineering. ... We looked at publicly available data moving between the user and the iPod," Sean Ryan, RealNetworks' vice president of Music Services, said at the Jupiter Plug.IN Conference last week in New York.
Copyright and contract infringement
Culpepper also sees a traditional copyright infringement case that Apple could use against Real, but it depends on the court's definition of FairPlay as software.
"I could see an argument that Apple could make that they have copyrights in the DRM itself," said Culpepper. "They could make the argument that the DRM is a piece of software and what RealNetworks software is basically doing when they perform that DRM translation, is making a copy of Apple's DRM software code. It all depends on how RealNetworks software works and how Apple has implemented their DRM."
The other avenue that Apple may have open to it is a contract claim that RealNetworks violated its software license.
"... when you download iTunes from Apple's site, you are required to execute a click license; as part of that license you agree that you're not going to reverse engineer the software," said Culpepper. "Again, we don't know what Real did, but it seems like they would have to reverse engineer something -- by doing that they would have violated the contract they signed [click license] with Apple, so I think Apple may have some contract cause of action."
The ramifications: What if Apple wins?
That Apple will try legal means to stop RealNetworks -- and potentially others -- from breaking into the iPod and making their songs work is almost a certainty. But what are the ramifications of a win for Apple on the consumer and the industry as a whole?
"There will be an injunction issued against them [RealNetworks] if they lose and there will also be damages, although those probably won't be substantial. If they pursue a traditional copyright claim on their DRM, there may be eligibility for statutory damages under the copyright law," said Culpepper.
The damages would not be that significant at this point because the software has not been available for a long time, therefore the perceived damage would be less. What a win for Apple would do in the industry is solidify the "solution model" of a company or group of companies offering songs and a music player.
"This effectively sets up a scheme in the industry where you are locked in -- if you buy an iPod, you are going to buy iTunes. This will make that system a way of life," said Culpepper.
The ramifications: What if Apple loses?
A potential loss for Apple would not only change the way the industry works, but Culpepper suggests companies would then take advantage of the ruling to effectively become music and DRM clearing houses.
"If Apple wins you will have a hardware and software source and those two are matched, but if Real wins that is no more," said Culpepper. "All of a sudden you could have inexpensive music clearing houses on the Internet with a particular DRM and they will sell a piece of software that converts their DRM into whatever DRM your player uses."
Software makers have used reverse engineering for years to make sure their software is interoperable with other software on the market, but the term is becoming more of a "dirty word" these days. To make matters worse, the laws did not have cases like this in mind when they were made and the ones that did, for the most part, have not been tested.
"Our intellectual property system is not designed to deal with some of these new technologies. As we start to patch those holes we are going to run into problems like this."
The ramifications: Digital Millennium Copyright Act (DMCA)
The DMCA's provisions for not circumventing DRM schemes notwithstanding, the Act allows companies to continue to make their software interoperable. It may be this line of reasoning RealNetworks is following when they said last week that their software "follows in a well-established tradition of fully legal, independently developed paths to achieve compatibility."
This case may be a testing ground for the DMCA and may be longer ranging than just Apple and Real.
"In my mind, this is not so much about Apple and Real -- this goes to the heart of the DMCA and using DRM to restrict the use of individual pieces of software, including audio files," said Culpepper.
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| posted by Perimbean @ 3:05 AM |
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Rio looks to dance over iPod mini
Carbon player boasts longer battery life and more memory than Apple rival
Mobile audio maker Rio is set to take on Apple's iPod mini with a device that weighs less and offers more capacity and longer battery life for the same price as its iconic rival.
The new Rio Carbon player, available later this month, stores 5GB of music compared to the iPod mini's 4GB, has a 20-hour battery life - nearly double that of the iPod mini - and costs £199. It weighs 90.7 grams compared to the iPod mini's 102 grams.
"Battery life is often mentioned as a key feature [customers] appreciate about Rio players. Our new players have been engineered to deliver up to 20 hours or more on a single charge or AAA battery," said Hugh Cooney, president of Rio Audio, in a statement.
"This keeps our customers focused on listening enjoyment rather than spending time recharging their device."
The Rio Carbon can handle WMA and MP3 files, with data transferred to the device via USB 2.0. It can also be used to record voice memos.
Rio was one of the first companies to build portable MP3 players, but chose to concentrate on smaller capacity Flash memory devices.
The Carbon joins the 20GB Rio Karma and 1.5GB Rio Nitrus hard drive-based storage devices. Two new Flash memory players, the Rio Forge series, capable of storing up to 128MB and 256MB of music, are also set for release.
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| posted by Perimbean @ 12:00 AM |
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| Sunday, August 01, 2004 |
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No Synchronicity for Apple, RealNetworks
Friday, July 30, 2004; 9:47 AM
Apple Computer came out with some honest-to-goodness fightin' words against RealNetworks yesterday, accusing the company of hacker-like tactics because it released software that allows people to play songs from the Real online music store on the iPod and other digital music players.
That's a big deal for Apple, the proud -- and protective -- parent of the iPod, especially because the little musical miracle is responsible for bolstering Apple's recent sales. But RealNetworks is not backing down, claiming that consumers should decide how they want to enjoy their music downloads.
RealNetworks likened its new Apple-compatible service to Compaq's first IBM-compatible PC. "We are absolutely in the right here legally and once more we are doing the right thing for the consumer," RealNetworks chairman and chief executive Rob Glaser told CNBC yesterday, claiming that the Apple-compatible songs Real is selling through its new Harmony song download service are a higher quality than Apple sells. He contended that Real has made songs compatible with many devices, the iPod included, in a legal way.
Apple's response? Picture chief exec Steve Jobs, steam rising from his ears. "We are stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod, and we are investigating the implications of their actions under the [Digital Millennium Copyright Act] and other laws," Apple said in a statement. Expect Apple's programmers to work for a fix to block RealNetworks's Harmony songs from working on iPods soon. It's "highly likely that Real's Harmony technology will cease to work with current and future iPods," Apple said.
The Associated Press said "Thursday's caustic reply suggested Apple was prepared to jealously guard its iPod franchise." Yeah, no kidding. iPod has been a cash cow like no other for Apple, which has seen its Macintosh computer sales continue to slide against growing sales of Windows-based PCs.
"While RealNetworks is the first company besides Apple to sell songs in the protected iPod format, other companies sell them in the MP3 format, which the player can also use," the New York Times reported. "Richard Doherty, a computer industry consultant and president of Envisioneering, said the dispute between Apple and RealNetworks intensified the debate about control over the sale and downloading of music. 'Both companies seem resolute in their positions,' Mr. Doherty said." As for the DMCA violation charge, "RealNetworks responded that the copyright act, passed in 1998 to address the issues surrounding the distribution of digital content, explicitly permits the development of software that can share data with programs from other companies."
The San Jose Mercury News quoted Jessica Litman, a professor of law at Wayne State University as saying "Apple has a 'pretty good argument' that Seattle-based RealNetworks is at odds with the Digital Millennium Copyright Act. The 1998 law makes it illegal to circumvent technological measures designed to protect copyrighted works. Litman said the DMCA allows companies to tinker with technology to develop a compatible file format. But there's no protection for trafficking in a technology designed to circumvent these protections, she said."
Reuters said "Apple has aggressively fought against software developers who develop ways to get around the FairPlay protections, which regulate where and how files downloaded from the iTunes Music Store can be played. Analysts were relatively unconcerned about the legal implications for Real, which so far has released the new "Harmony" software on a limited test basis. To date, Apple has sold more than 4 million iPods, which now account for about 12 percent of its revenue. More than 100 million songs have been downloaded from its online music store."
RealNetworks released a statement yesterday, echoing Glaser's remarks. "Harmony creates a way to lock content from Real's music store in a way that is compatible with the iPod, Windows Media [digital rights management] devices, and Helix DRM devices. Harmony technology does not remove or disable any digital rights management system. Apple has suggested that new laws such as the DMCA are relevant to this dispute. In fact, the DMCA is not designed to prevent the creation of new methods of locking content and explicitly allows the creation of interoperable software. We remain fully committed to Harmony and to giving millions of consumers who own portable music devices, including the Apple iPod, choice and compatibility," the company said.
Apple's warning against RealNetworks's new service adds "fuel to the fight over the digital music business," the Wall Street Journal reported. But the paper noted that "Apple's statement is a delayed reaction to an announcement from RealNetworks Monday that it had created a technology, dubbed Harmony, that allows users of RealNetworks' RealPlayer Music Store to transfer songs to the iPod. Apple has maintained iPod as a closed system, allowing only digital songs purchased from its iTunes Music Store, and no other mainstream music site, to work with the music player. (iPod users can also play songs recorded in the MP3 format from personal CD collections or downloaded through file-sharing programs.) Late last week, RealNetworks Chief Executive Rob Glaser contacted Apple CEO Steve Jobs to inform him about Harmony, but Mr. Jobs reportedly was on vacation. An Apple spokesman declined to comment beyond his company's statement."
USA Today explained that RealNetworks started out trying to woo Apple rather than egg it on: "Earlier this year, RealNetworks CEO Rob Glaser sent Apple CEO Steve Jobs an e-mail seeking ways to make their digital music systems compatible, only to be rebuffed. Apple dominates digital music with an estimated 70% share of legal downloads. Its iPod is the leading music player, with a 50% market share. Most of the other 50% is in the Microsoft camp. Its Windows Media Audio format has been adopted by many rivals to offer copy protection to record labels, including the revived Napster, MusicMatch and Wal-Mart. Songs purchased in the WMA format will not transfer to the iPod. Real's songs are in the Advanced Audio Coding (AAC) format, like Apple's, but use a slightly different copy protection scheme," the newspaper said.
And the Los Angeles Times report sheds light on why anyone should care about the Apple/Real tiff. "At the heart of the conflict is the major record companies' demand that downloadable-music stores wrap their songs in electronic locks. To the industry's chagrin, Real, Apple and Microsoft Corp. developed incompatible anti-piracy techniques. Hence the Real-iPod predicament, which Real thought it had resolved," the paper said.
Real, for its part, is casting itself as the ironic Apple envoy. "So let me get this straight," Real spokesman Matt Graves told the LA Times. "Apple is complaining we're helping them sell more iPods?"
The New York Post summed up the feud with the kind of headline only the Post could dream up: "Ripping Off iPod." In the article, Yankee Group analyst Michael Goodman asks the golden question. "Is the goal here to just create a technology that you can layer over iPod, or is the real goal to bring Apple to the bargaining table?" Goodman said. "There's an interesting question here of what RealNetworks' true motivation is."
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| posted by Perimbean @ 4:03 PM |
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