Seth Gilbert, 08-18-2008
When Google’s first cell phone ambitions started to fuel public conversation, the mysterious G-phone was a myth as exotic as an udumbara flower and as circulated as a chain email. In November 2007, Google settled the mystery by revealing their plans for Android, a linux based, open-source mobile O.S. platform. Now, there’s a tentative debut deadline for the first Android enabled phone. It will be here by November 10th at the latest, possibly earlier.
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Seth Gilbert, 08-14-2008
Summer is a time for BBQ’s and beaches. The weather is good and people tend to enjoy it. Not surprisingly, as a result, it’s a slower period for indoor entertainment products like video games. Still, “slower” is a relative term. According to newly released NPD sales data for July, even in a month of measured expectations, the industry delivered double digit year over year growth.
For the month of July, the US gaming industry rose 28% over last year in total sales with revenue of $1.19b for the month. Software was up the most with a 41% year over year gain. Hardware and accessories were up 17% and 19% respectively.
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Seth Gilbert,
Yahoo today confirmed the appointment of two board members to fill the seats pledged in the settlement of their proxy fight with Carl Icahn. With front runner Jonathan Miller sidelined due to a non-compete agreement with his former employer, Yahoo named Frank Biondi and John Chapple to their board. Each of the new appointees will bring different credentials to the table. More on each:
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Seth Gilbert, 08-13-2008
The merits of unconditional giving aside, if you build something and decide to give it away, decide to put it into the public domain, can you attach strings to the gift? Can you set rules that stick with your invention and continually govern how it will be used from owner to owner to owner? And if those rules aren’t’ followed is the violation copyright infringement? In a ruling deciding a case addressing the enforceability of open-source software licenses, Wednesday the US Court of Appeals for the Federal Circuit said yes. The decision reversed a San Francisco Federal Court ruling.
To many, the news may seem like an insignificant, or esoteric, legal discussion. The Open-Source community, which was rallying for the result, would argue otherwise. Click to Read More
Seth Gilbert,
Apple and retailer Best Buy got cozy with a “store within a store” pilot project a couple years ago. After a successful test, the pilot became a full-fledged roll out. Last week, Best Buy finished another project: a long effort to upgrade its cell phone sales department. (Best Buy Mobile shops are a a joint venture with Britain’s Carphone Warehouse). Putting the Apple and Phone upgrades together, Best Buy selling the iPhone would seem a natural fit. That’s exactly what was announced Wednesday.
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Seth Gilbert, 08-12-2008
Yesterday’s “Applevine” post on Metue summarized some of the current Apple reports and rumors circling the news world. One of the elements included was a recap, and light review, of newly reported data on how the new iPhone supporting “App Store” is doing. The numbers were impressive and there is clearly great potential but the take here was cautionary; a bias toward pragmatism with predictions. One month seems too slight a sample to use for accurately forecasting revenue growth or impact on EPS. A few raised flags of dissent.
One comment speculatively said the store could be a 80 to 85 percent gross margin business. Another said that the store could add as much as ten or twenty cents to quarterly earnings per share. Those numbers weren’t supported. They were just “pie in the sky claims,” but still they are out there and they beg a question: what’s the App Store potentially worth – not qualitatively, not from a behavioral analysis, not from a zealous Apple fan, nor from a detractor – simply by the numbers. If we set aside the opinion that one month of data is too little to be meaningful and use it anyway, if we break out the Graham & Dodd, fire up the spreadsheets, how much of a contribution could the App Store make to Apple’s bottom line if the current levels are annualized? It’s got a great revenue story but how much for earnings?
How much might the App Store contribute to earnings per share if the store’s revenue grows to $500m, or passes $1 Billion?
What might it mean to Apple shareholders on a standalone basis that disregards the store’s greater contribution as a driver of iPhone (and iPod Touch) sales?
There’s no easy answers, but in this post we’re going to try and set out a framework for looking at it – a way of adding numbers to wild speculation.
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Seth Gilbert, 08-11-2008
In politics, or even for the reign of a new CEO, one hundred and eighty days are the usual benchmark for the first measurements of achievement. In the consumer electronics world, with the instant gratification generation of the Internet driving things, the pace is far quicker. It’s been only a month since Apple unveiled the iPhone 3G to the world but measurements are flowing. And like a blockbuster movie touting weekend box office tallies to sustain momentum, Apple too is shrewdly using the press to maintain and build buzz for the phone.
Today, Apple announced that more than 60 million applications have been downloaded at the new “Appstore.” Click to Read More
