Moore’s News Roundup Digest - Monday, February 2, 2004
The Mac Lovers Of Microsoft
The iBook G4s Benckmarked
How to Make a Better Mac Laptop?
"If it Ain't Broke...": Why Users Hang on to OS 9
iTunes Music Store: Facelift for a Corrupt Industry
PC Mag: Can Email Survive?
On the Prowl with Panther: A Free Orientation to Mac OS X version 10.3
PC Mag: Burning DVDs at the Speed of Light
ATI Q4 Market Share Beats Nvidia - Just
Steve Jobs Is Having A Very Good 2004
Microsoft Blocks Lindows.com Products in the Netherlands
Gateway to Acquire eMachines - Becomes Third-Largest PC Company in the U.S. and Eighth Largest in the World[/url]
The Mac Lovers Of Microsoft
Seattle Post-intelligencer Reporter Todd Bishop says:
"...The Mac BU, as it's known, makes Microsoft software for Apple computers, bridging the gulf
between the companies' operating systems and linking their respective followers in the process.
"It may be the only place at Microsoft where someone can be spotted wearing an 'I Don't Do Windows' shirt. And nowhere else would a Microsoft employee, recounting a speech where he captivated a crowd, liken himself to Apple's Steve Jobs, rather than to Microsoft's Bill Gates.
"Not to imply that the people of the Mac Business Unit are disloyal to their employer. Far from it. But as one observer put it, it's as if they were working for a division of General Motors making parts for Volkswagens."
For the full report, visit here:
http://seattlepi.nwsource.com/business/158677_msftmac30.html
The iBook G4s Benckmarked
MacSpeedZone's David Engstrom says:
"On paper there is very little to separate these three iBook, other than processor speed and screen size. Even in processor speed, you don't see the kind of performance gaps that exist between the Tower Power Macs. No the iBooks take only baby steps in terms of clock-speed, with the high-end 1 GHz Book clocking in only 25% faster than the low-end 800 MHz iBook.
"This is reflected in the raw processing capability of each model iBook. Setting the 800 MHz model at 100%, in basic processing prowess, the 933 MHz Book comes in between 12% to 14% faster, and the 1 GHz machine 17% to 24% faster.
"All three machines have the same graphics card, but the extra processing muscle of the two higher-end models, does help them best the 800 MHz machine in most of our graphics tests ... even if it is by a small margin."
For the full report, visit here.
How to Make a Better Mac Laptop?
Dan Gillmor muses:
"I return to a recurring fantasy.
"Now that IBM is making the chips Apple will use in new-generation computers, why can't Apple acknowledge, and take advantage of, Big Blue's supremacy in making laptops? The ThinkPads have set a standard for years in the hardware department. Apple makes elegant machines, but they're hardly perfect and quality control has been slipping lately.
"Marry the ThinkPad hardware with Mac software, ease of use and style, and you'd have an almost perfect laptop. I realize there's no chance that this will happen. But that's how fantasy works."
Well, it's a fantasy not entirely without precedent. The PowerBook 2400c was designed and built by IBM Japan.
You can check it out at:
http://weblog.siliconvalley.com/column/dangillmor/archives/001730.shtml#001730
"If it Ain't Broke...": Why Users Hang on to OS 9
Insanely Great Mac's Remy Davison asks rhetorically:
"Why are there so many OS 9 'hold outs'? It's a question Apple probably asks frequently in their pro/consumer research. The answer is: workflow.
"...for pros, a 'carefully tuned' workflow process matters more than a mere upgrade. In fact, if things break, productivity goes down, and you've effectively downgraded."
To which I would add, it's also because OS 9 is so darned good. I have friends who could be running OS X, some of whom even have it installed on their computers, but who continue to boot into OS 9 because they're familiar with it, like it, and find that it does everything they want an OS to do.
You can check it out at:
http://www.insanely-great.com/news.php?id=3034
iTunes Music Store: Facelift for a Corrupt Industry
PowerPage's Asbestos-man says:
"If you're in the mood for a little counter-point on a Friday, check out iTunes Music Store: Facelift for a Corrupt Industry, but I will warn you the author has a major axe to grind with Apple and the ITMS.
How long do you think Apple will allow him to use Apple's copyrighted interface and images so flagrantly? I'm sure Steve Jobs will "release the hounds" when he sees the iTunes-looking download icon that says "Download with Poisoned then burn with iTunes."
You can check it out at:
http://www.powerpage.org/cgi-bin/WebObjects/powerpage.woa/wa/story?newsID=11758
PC Mag: Can Email Survive?
"Last year was not a good year for e-mail. In spring 2003, the steady flow of unsolicited and unwanted messages reached a tipping point. According to Postini, a California company whose e-mail- filtering service processes 150 to 200 million messages a day, spam finally accounted for more than half of all e-mail traffic. Then, in August, the SoBig-F virus hit the Net, rapidly spreading via a torrent of e-mail messages. New York-based MessageLabs, which runs a service similar to Postini's, trapped more than a million SoBig messages before the outbreak was 24 hours old, calling it the fastest-spreading e-mail virus on record.
It was the exclamation point on the gradual rise of mass-mailing viruses. This year, MessageLabs says, the ratio of virus-infected messages to other e-mail traffic increased by nearly 85 percent. As if all those SoBig messages weren't annoying enough, it was soon apparent that the virus was reprogramming PCs to serve as "open relays," giving spammers still more launchpads for their anonymous attacks. MessageLabs claims that more than 66 percent of all spam is now sent using systems commandeered by SoBig or MiMail, a similar worm."
Read more at:
http://www.pcmag.com/article2/0,,1464016,00.asp
On the Prowl with Panther: A Free Orientation to Mac OS X version 10.3
Free orientation tutorials for Apple Computer's Mac OS X version 10.3 (Panther). This is the fourth major release of Mac OS X in three years, and contains over 150 new features. This free orientation series focuses on the new and improved Finder, as well as highlighting new features like Exposé and Fast User Switching.
The free Mac OS 10.2 (Jaguar) series is also still available. In addition, the subscription library also includes Terminal Velocity, our introduction to the Mac OS X command line interface, as well as a Mac OS X 10.2 Tips & Tricks series.
A. New Finder Features:
1. • The Finder Sidebar (1:28 - 488K)
2. • The Finder Search Form (1:06 - 300K)
3. • The Finder Toolbar (1:45 - 499K)
4. • The Finder Toolbar Action Menu (0:48 - 228K)
5. • Setting Finder View Options (1:35 - 589K)
6. • Collapsing Finder Toolbars and Sidebars (0:44 - 205K)
B. New Finder Preferences:
1. • The General Finder Preferences (1:41 - 603K)
2. • The Finder Labels Preferences (1:24 - 326K)
3. • The Finder Sidebar Preferences (1:21 - 330K)
4. • The Advanced Finder Preferences (0:47 - 178K)
C. New and Updated System Preference Features:
1. • Enabling Fast User Switching (0:37 - 239K)
2. • Using Fast User Switching (1:01 - 321K)
3. • Using Expose (1:48 - 948K)
4. • Using FileVault Encryption (1:32 - 260K)
5. • Desktop and Screen Saver Preferences: (1:47 - 838K)
6. • CD and DVD Preferences (0:57 - 218K)
7. • Receiving Faxes (1:12 - 226K)
8. • Using a .Mac iDisk (1:44 - 308K)
9. • More on using a .Mac iDisk (0:23 - 96.7K)
10. • Setting User Limitations (1:37 - 388K)
11. • More User Limits - The Simple Finder (1:44 - 337K)
12. • More on Setting User Limits (1:00 - 198K)
13. • Repairing Disk Permissions (2:17 - 597K)
14. • New Keyboard Shortcut Preferences (1:46 - 437K)
15. • Using Built-in Speech Recognition (2:26 - 631K)
D. More New and Updated Features:
1. • The New Save Dialogue Box (1:09 - 385K)
2. • Updating Your Software (0:58 - 285K)
3. • Securely emptying the Trash (0:32 - 105K)
A subscription to Atomic Learning is $79.99 (US) annually, and gives you access to thousands of tutorial movies, with more being added every month.
For more information, visit:
http://www.atomiclearning.com/freemacosxpanther
PC Mag: Burning DVDs at the Speed of Light
"Even after more than half a decade of relentless innovation, DVD writers continue to advance at a breakneck pace. Where once creating a full 4.7GB DVD disc took more than 30 minutes, the new crop of 8X DVD+R drives can do it in about 8 minutes.
And while the four models we tested for this story represent the best the industry has ever had to offer, even more advanced burners are just around the corner. Dual-format models that can record both +R and -R media at 8X speeds are expected to ship soon (the models here drop to 4X speed for DVD-R media), and 12X units should hit the market by midyear. Another big shift: Recorders that support dual-layer DVD+R media-which nearly doubles the 4.7GB capacity of today's discs-are already being demonstrated."
Read more at:
http://www.pcmag.com/article2/0,4149,1476490,00.asp
ATI Q4 Market Share Beats Nvidia - Just
The Register's Tony Smith reports:
"ATI nosed past Nvidia last quarter to retake its long-lost leadership of the graphics chip market, according to figures from market watcher Mercury Research cited in a Goldman Sachs customer report.
"Nvidia needn't worry too much, and ATI has no room to get cocky. The latter's Q4 2003 market share was 24.9 per cent - Nvidia's was 24.7 per cent."
For the full report, visit here:
http://www.theregister.co.uk/content/3/35239.html
Steve Jobs Is Having A Very Good 2004
Forbes.com's Peter Kafka writes:
"Steve Jobs is having a very good 2004. Six days into the new year Apple Computer rolls out a pint-size version of its bestselling iPod. Two days later Hewlett-Packard announces plans for an HP-branded iPod."
For more visit here.
Microsoft Blocks Lindows.com Products in the Netherlands
A judge in the Netherlands last week granted Microsoft a preliminary injunction against desktop Linux vendor Lindows.com Inc., a decision Lindows.com plans to appeal. The ruling will deny the Netherlands the cost- savings that desktop Linux currently offers to approximately 18 million people worldwide, leaving vulnerable and expensive Microsoft software as the only option for computer consumers in the Netherlands.
"It's clear that Microsoft is using their army of hundreds of attorneys and billions of dollars as a battering ram to destroy any company that promotes desktop Linux," said Michael Robertson, chief executive officer of Lindows.com Inc. "They were unsuccessful in the U.S. with this tactic, so now they're resorting to picking countries where they will find a sympathetic court. Today, U.S. customers can purchase computers pre-installed with desktop Linux and are saving millions of dollars when compared with expensive, virus-prone software from Microsoft. This ruling may delay the day when Dutch customers receive those same savings, but I can assure you that we will continue to battle to bring the benefit of choice to the Netherlands."
Lindows.com will abide by the terms of the ruling, but will appeal the decision that deprives Dutch consumers of the cost-savings that desktop Linux users worldwide have experienced. Lindows.com products have enabled $199 PCs and $699 laptops to be widely available in the United States, where courts twice denied Microsoft's requests for a preliminary injunction against Lindows.com ( http://www.lindows.com/msftdenied ). The exclusivity of Microsoft products in the Dutch computer market results in consumers paying inflated prices for vulnerable software.
Despite the March 1, 2004 trial scheduled in the United States, Microsoft has been opening multiple fronts in Europe in an attempt to drain the resources of competitors. The software giant has threatened resellers and brought legal action against Lindows.com in several countries of the European Union, including France, Sweden, and Finland. The moves prompted the launch of ChoicePC, a rallying point for supporters of choice in European countries that was met with overwhelming support ( http://www.lindows.com/choicesuccess ).
Details of the continuing litigation between Microsoft and Lindows.com are available at http://www.lindows.com/opposition . Those interested in attending or receiving updates on the March 1, 2004 trial in Seattle, Washington should register at http://www.lindows.com/attend .
To stay up-to-date on Lindows.com happenings, visit http://www.lindows.com/mailings
Gateway to Acquire eMachines - Becomes Third-Largest PC Company in the U.S. and Eighth Largest in the World
Gateway, Inc. has announced that it agreed to acquire privately-held eMachines, Inc., one of the fastest-growing and most efficient PC companies in the U.S., for 50 million shares of Gateway common stock and $30 million in cash.
The combination will create a strong number three-player in the U.S. PC market and the eighth largest PC company in the world with: revenue of $4.5 billion (2003 combined); nearly seven percent of the U.S. PC market; more than 25% of the U.S. retail PC market; one of the broadest lines of consumer electronics products among all PC companies; and rapidly-growing PC sales in key international markets, including Japan, the U.K. and western Europe.
The combined company plans to leverage eMachines' established retail relationships and low cost distribution model in the U.S. and abroad to expand distribution of Gateway's successful and growing line of consumer electronics (CE) products beyond its existing direct channels.
Gateway will also adopt many elements of eMachines' highly efficient and profitable operating model, which last year generated approximately $1.1 billion in revenue, an increase of more than 40% over the prior year, and selling, general and administrative (SG&A) expenses in the mid-single digits as a percentage of revenue, coupled with world-class service and support and high-quality products. The fourth quarter of 2003 represented eMachines' ninth consecutive quarter of profitable performance. Together, the combined companies expect to drive significant performance improvement, yielding substantial cost savings and margin synergies annually.
As a result of sales volume increases, planned cost savings and other synergies associated with its acquisition of eMachines, Gateway said that it expects to return to sustained profitability for 2005.
Under the agreement, Wayne Inouye, eMachines' chief executive officer, will be CEO of Gateway and will be named to Gateway's board of directors. Roderick Sherwood III will remain Gateway's chief financial officer. Ted Waitt, Gateway's founder, will remain chairman of the board, continuing to play an active role in the company's long-term strategic direction, product development and marketing plans and other areas. Together, the three will lead an integration team comprised of the two companies' senior executives, that will focus on rapid finalization and execution of combined cost savings plans, channel and product expansion initiatives and other growth strategies.
Under the terms of the merger agreement, eMachines' chairman and principal shareholder, John Hui, as well as Wayne Inouye and eMachines' management team, have entered into stockholder agreements with Gateway that provide for certain holding periods, vesting periods and sale restrictions on Gateway stock. Under this agreement, these Gateway shares cannot be sold or hedged outside of the defined schedule over the next two years. In sum, eMachines' management team is committed to an equity-based, long-term relationship with Gateway, focused on the company's future success.
The agreement is subject to customary closing conditions, including expiration of the waiting period under Hart-Scott-Rodino and is expected to close within approximately six to eight weeks at which point the above executive appointments become effective.
With its acquisition of eMachines, Gateway is creating a company with unique distribution strengths and synergies, some of the fastest-growing PC and CE product lines in the industry and a structure that will transform to a highly efficient operating model. The transaction is expected to take Gateway's branded integrator strategy and greatly accelerate it from both a scale and efficiency standpoint, creating a company with a low cost structure, multiple brands across multiple channels and geographies, greatly expanded points of distribution and maximum flexibility in its business model. Gateway also plans to retain its ability to integrate customized solutions for customers through its existing Consumer and Professional direct sales channels.
The company plans to sell Gateway-branded consumer and business desktop and notebook PCs as well as servers and storage products for the professional market through Gateway's existing direct channels. Gateway will sell eMachines' award-winning desktops and notebooks under the eMachines brand only through third-party retail channels in the U.S. and abroad. Gateway's Professional division will benefit from eMachines' improved operating model to be able to extend its product lines into the value-based PC category for its business, government and education customers.
In addition, the company plans to leverage eMachines' long-standing retail relationships and low cost distribution model to expand distribution of Gateway-branded CE products to the traditional retail channel both in the U.S. and abroad. Gateway is currently the number-one seller of plasma TVs in the U.S.(2) and in the past year has introduced a broad line of CE products, including award-winning digital cameras, a full line of plasma and LCD TVs, DVD players and recorders, MP3 players and home theater systems.
Finally, Gateway expects to adopt many elements of eMachines' low-cost operating model, which has made it one of the most efficient PC vendors in the marketplace. The cost reduction plans associated with the integration of the two companies is expected to create significant SG&A savings.
"eMachines has created an operating structure, growth trajectory and reputation among customers that is a model for the future," said Ted Waitt, chairman, CEO and founder of Gateway. "They're bringing to Gateway a strong brand that has grown dramatically in value over the past two years relative to its retail competitors and one of the most capable management teams in the PC world."
Wayne Inouye, who will become Gateway's CEO upon closure of the transaction, was named president and CEO of eMachines in the spring of 2001. He implemented a new business model that revived a firm that most industry observers had dismissed. Under his leadership, eMachines has recorded nine consecutive profitable quarters, increased PC retail market share from nine percent in the first quarter of 2001 to approximately 25 percent in the fourth quarter of 2003 and moved the company from the number-six spot in desktop and notebook PC sales in the United States to number four in the fourth quarter of 2003. eMachines is now considered one of today's best run and most successful companies in the PC industry.
Inouye said: "This new relationship makes perfect sense for us as we continue growing our business and our customer base in the U.S. and abroad. Gateway is one of the most respected brands in the market and Ted Waitt is a visionary who is once again leading the market with innovation that others are scrambling to follow. Gateway has the capital, the scale, the product line and the management expertise to help us dramatically increase our own growth, and all of us at eMachines are excited to be part of the Gateway team."
Finally, Waitt said, "I've spent a lot of time with Wayne Inouye recently, and there's no better person to successfully lead Gateway to our future. He's a great, inspirational leader with world-class skills and deep working knowledge of our respective industries. I look forward to working with Wayne and with the Gateway and eMachines teams to make this company great for our customers, shareholders and employees."
For more information, visit:
http://www.gateway.com
or
http://www.emachines.com
Charles W. Moore
