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HP CEO says company is taking 'too long to get to market' with innovations, we wholeheartedly agree
Leo Apotheker, HP's successor to the infamous Mark Hurd, has sat down for a chat with the Wall Street Journal recently, and while most of it is innocuous corporate-speak -- "we need to fire up our innovation engine" -- there was one quote that piqued our interest. The new chief believes HP needs to get its products to market faster, rejecting Sam Palmisano's suggestion that HP has lost its innovative touch and insisting that his company's weakness has been in just not getting the products out to store shelves quickly enough. Of course, you could say that that's an error HP is repeating again with the launch of its new webOS devices -- the TouchPad, the Pre 3 and the Veer -- none of which are expected to arrive before this spring. However, to be fair to Apotheker, he's still relatively new to the job and these words from him could well signal a change for the better in future product cycles. Full interview at the source.
Apple to require in-app subscriptions for periodicals by March 31st, fine print still a bit fuzzy
We knew The Daily was to be just the first drop what's destined to be a flood of titles with in-app purchases for the iTunes store, but we weren't quite sure how hard Apple would be twisting the faucet -- until now, that is. According to The Wall Street Journal, Cupertino will reject any newspaper or magazine app that doesn't take subscription payments through the iTunes store. It doesn't have to be solely Apple's store -- developers can still sell through websites in addition to the mandated in-app option. (If you recall, this is the same issue that Sony Reader for iOS just faced.) There are a few big questions lingering out there: will the 70 / 30 revenue sharing apply? Does the "rejection" apply to apps already in the store like Amazon's Kindle? You bet your (virtual) bottom dollar we'll be finding out soon enough.
WSJ: Verizon confirms $30 unlimited data plan - for now
Verizon will offer a $30 unlimited data plan, the Wall Street Journal confirmed this morning, similar to the original plan that AT&T offered when the iPhone was originally introduced. This comes after a couple weeks of speculation. "I'm not going to shoot myself in the foot," said Lowell McAdam, the carrier's chief operating officer. Engadget, however, is showing that Verizon is doing away with its tiered data plan option entirely. This offers another incentive not only for new iPhone customers, but luring over current AT&T users who are on the fence about whether or not to switch. AT&T has had capped-tier data plans since June, but those iPhone customers with older contracts had their unlimited data plans grandfathered in. Update: The WSJ updated its blog to say that the unlimited data is a limited-time option, and that Verizon will be moving to tiered pricing in the near future. [via MacRumors]
WSJ: Verizon iPhone will offer unlimited data
We've been wondering for the past day or so what the distinguishing features of the Verizon iPhone might be. Will it come in colors? Aside from VZW's respectable network and CDMA technology, how will the iPhone experience on Big Red be different? If the Wall Street Journal is right, there'll be a big difference in the service plans: unlimited data. The paper cites a source familiar with Verizon's plans saying that an unlimited data option will be available. By comparison, AT&T moved to a capped tier this summer, which angered some users who preferred the unlimited option. [via Business Insider]
IGN and GameStop forge partnership, combine traffic, learn the power of sharing
Major corporation cooperation news now, with a report from The Wall Street Journal's Kara Swisher announcing a "partnership" between News Corp's gaming megasite IGN and retail (and recycling) behemoth GameStop. While it's not clear how extensive this partnership will be, Swisher reports that IGN will be creating (and presumably selling) ads on GameStop.com; IGN editorial content will appear on GameStop.com; and, inversely, IGN.com will inherit plenty of GameStop.com e-commerce buttons. Perhaps most notably, IGN and GameStop will merge their traffic, to better appeal to advertisers and further cement IGN's pole position amongst video game websites. GameStop has 7.2 million monthly unique visitors which will be added to IGN's 28.9 million, resulting in a post-rollup total of more than anyone else. We've got notable questions regarding the businesses which overlap. For example, what happens to Game Informer, the GameStop-owned video game magazine and site that competes with IGN? And what about IGN's Direct2Drive PC gaming retail arm? And what about concerns that this extensive of a retail relationship is a little cozy for an editorial outlet? We'll update this post when we learn more.
App review: Wall Street Journal Tablet Edition for Android
We'd always thought this was going to be the year of Android tablets, but until the day Google gives its full blessing for the tablet form factor, the market will still be lacking in apps that make good use of the extra screen estate. Funnily enough, today the Wall Street Journal took a leap of faith and pushed out an Android version of its tablet app, just in time to ride on the Samsung Galaxy Tab's first wave. In many ways, WSJ's Android app appears to be a slimmed down version of its iPad equivalent. Once logged in with a subscription account, users are greeted by the same start screen for choosing your papers, which are automatically downloaded at launch. Naturally, once the papers are on your device, you can read them regardless of internet connectivity, and you can save your favorites to a dedicated area there for quick access as well. More after the break. %Gallery-107209%
Wall Street Journal releases Android Tablet Edition app, phones need not apply
Given that the first truly respectable Android tablet just came out, the Wall Street Journal is timing its Tablet Edition app release pretty much perfectly. It aims to offer a faithful reproduction of the printed version of the paper while augmenting it with full-screen video, market data, customization options, and the ability to save articles for offline reading. $3.99 will net you a week's worth of access on both Android and iPad Tablet Editions along with subscriber privileges on WSJ.com. The app itself is free, so if you have a Galaxy Tab just hanging around (it doesn't work on phones, we've already tried on a Desire Z) you can give it a test-drive -- it's certainly what we intend to do, check back later for our impressions!
Facebook games transmitting your info to third parties
Our friends at Joystiq have turned us on to a Wall Street Journal article that concludes your privacy is at risk if you play Facebook games. The Journal discovered that each of the top 10 Facebook applications transmits user IDs, which may be shared with unauthorized third parties. We know, it's not exactly new or shocking information, but continued user ignorance -- or apathy -- regarding online habits is a troubling trend that bears examining. WSJ authors Emily Steel and Geoffrey A. Fowler did just that and turned up all manner up interesting findings including a data-mining firm called RapLeaf Inc. that linked Facebook user IDs to its database of internet users. RapLeaf didn't stop there, as it then transmitted the user IDs to a dozen other firms, an express violation of Facebook policy. Though RapLeaf vice president of business development Joel Jewitt said "we didn't do it on purpose," Facebook is nonetheless trotting out the damage control PR. "We have taken immediate action to disable all applications that violate our terms," said a company spokeman.
WSJ: Verizon to sell iPhone in 2011, fifth generation iPhone is in the works (updated)
We've been to this rodeo before (a few times, actually), but the smoke that leads to fire is getting far harder to ignore. Following a Bloomberg report in June that a Verizon iPhone was on track for a January 2011 release as well as independent confirmation from John Gruber, Yukari Iwatani Kane from The Wall Street Journal is now sounding mighty confident that the aforementioned plans are true. According to various people "briefed by Apple," Jobs and Company will begin "mass producing a new iPhone by the end of 2010 that would allow Verizon Wireless to sell the smartphone early next year." It'll rely on a key Qualcomm chip as well as a CDMA radio, but curiously enough, there's nary of a mention of LTE in this report. In closely related news, it's bruited that Apple is also developing a separate iPhone model, though it's unclear how soon VZW will be able to grab the fifth generation edition. 'Course, it's not exactly the shocker of the year to hear that Apple's toiling on a new iPhone without a dubious antenna design, but the real question is this: will the Verizon iPhone beat AT&T's elusive white iPhone 4 to market? Inquiring minds would love to know. Update: The WSJ udated the story to be more clear, "Apple Inc. is making a version of its iPhone that Verizon Wireless will sell early next year." So it's not just a generic CDMA iPhone that may or may not end up on Verizon Wireless. The WSJ also added that the CDMA iPhone 4 variant will be built by Pegatron and would only work on a CDMA network (i.e., it's not a dual-mode GSM/CDMA device). Also, according to one source, VZW has been working with Apple to test its network and is adding additional capacity to avoid being overwhelmed a la AT&T.
Wall Street Journal confirms iTunes TV show rentals [Update: Netflix on Apple TV claimed by BusinessWeek]
TV shows and iTunes go back several years now, to October 2005. If iTunes TV show sales have not been as brisk over those five years as Apple and the studios might have hoped, perhaps a less expensive rental solution might introduce vigor to the TV market. This afternoon, the Wall Street Journal has confirmed with "people familiar with the matter" that Apple is set to announce $0.99 rentals during tomorrow's media event. Rumors of iTunes TV rentals have been widespread over the last month. With Hulu Plus waiting on the sidelines for $10/month (and ads, for that matter) and Netflix hyping digital streaming to mobile devices, it seems like a good time for Apple to dip its toes into new and more flexible revenue streams. While Apple is willing, it seems like the studios had to be convinced. WSJ sources say that studio participation in the rental scheme is contingent on broader Apple participation in digital development deals. I know that I have rarely re-watched any of my iTunes purchases -- and that most of those purchases were based on pre-Hulu availability after my EyeTV system failed to record shows. But with Hulu as a major player these days, not to mention the promise of Hulu Plus's mobile streaming service, and with a growing recession, will consumers be willing to pay extra just to skip ads? Update: Engadget points to the Bloomberg BusinessWeek report claiming Netflix streaming will also be on deck for a revamped Apple TV.
More murmuring about 99 cent iTunes TV rentals
Well now. The previous rumor about 99 cent rentals for TV episodes on iTunes was just your average, but now that we know there's an Apple event just around the corner, it's time to start making hay out of all the chaff floating around. A source now tells the Wall Street Journal that Apple is pushing hard for a deal with Disney to nail down cheaper 48-hour rentals, presumably to come through iTunes and the revamped iTV service. Resistance to the deal is coming from TV companies (surprise, surprise), who are leery about putting too much content out through online services, fearing that people will leave their monthly cable bills behind if another service arises. What's funny about that, of course, is that Apple sees that's already happening. Services like Hulu Plus and Netflix are already making cable customers rethink their monthly fees, and so Apple is finding itself with a limited amount of time to get in on the action. The Wall Street Journal says the company is pushing for agreements "before the new television season starts," but now that we know there's an event planned for September 1st, it's more likely Apple is trying to get agreements set up before the announcement. Of course, as Philip Elmer-DeWitt points out, the real economic tradeoff isn't between the $0.99 rentals and a more lucrative plan the studios come up with -- it's between Apple's proven iTunes-based economy and the free-range TV programming on BitTorrent. And with its ties to Disney, odds are that Apple will definitely have enough to go forward, even if it doesn't have every channel signing on the dotted line just yet. So here's the question: if Apple does announce a new iTV, and a way to watch new television on demand right away, will you choose a system like that over whatever cable bill you're currently paying?
The curious idea of ads in iBooks
Don't worry -- you won't start seeing ads for tattoo parlors while reading Girl with the Dragon Tattoo. Not yet, anyway. But there's some interesting thinking going around the 'net (kicked off by this article in the Wall Street Journal) about how advertising may soon try to conquer the last bastion of entertainment: books. When you go to the movies, you see ads, when you watch TV and browse the Internet, there are ads everywhere. But why don't you see ads while reading a book? (I mean, besides the obvious conclusion that it's annoying and invasive?) In the past, it's been because the lead time for books is a wild card. Unlike newspapers and movies, books have a longer shelf life, and different readers could revisit the same material over a period of years rather than days or weeks. You'd have to dynamically deliver ads in some way, and you'd need publishers with know-how and insight about their customers in order to sell relevant ads regularly. In short, you'd need e-books, and you'd need a company (says Snarkmarket) like, say, Apple. Publishers may not have the ability to sell relevant ads to readers, but Apple surely does, especially since it seems to be sweeping up ad sales people as quickly as possible lately. And with prices becoming competitive in the e-book space, there's incentive for both Apple as an iBook publisher and even authors (who want to supplement e-book sale numbers with iAd sales) to bring advertising over to the iBookstore at some point.
WSJ says iPads gaining acceptance in corporations
The past few weeks have been fascinating for Apple watchers. The business press has been reporting that the brand, formerly a pariah in the buttoned-down world of corporate IT, is now being accepted with open arms. We had a story yesterday about the growth of Mac sales in the government and enterprise markets, and now the Wall Street Journal is reporting on how the iPad is finding a home in the business world. In the WSJ Tech piece, reporter Ben Worthen notes how the iPhone was banned by companies when it first came out in 2007 for being inappropriate for the workplace. The iPad, however, has been quickly embraced by companies. One such success story cited in the WSJ piece talks about Chicago-based law firm Sonnenschein Nath & Rosenthal LLP. The company pre-ordered 10 iPads prior to the release of the device in April so that they could learn how iPads could be used with the company's internal systems. The technology department at the firm now supports more than 50 attorneys with iPads, and they plan on issuing iPads as a less-expensive alternative to laptops soon.
Wall Street Journal examines SOE's and Turbine's switch to free-to-play
The growing trend toward the free-to-play business model in the MMO industry has caught the attention of the Wall Street Journal. The feature story in the paper's weekly Digital Media section is entitled "First, Give Away the Game," and focuses heavily on some of the recent free-to-play announcements from high-profile MMO developers. Warner Brothers President Martin Tremblay spoke to the WSJ regarding DDO's dramatic turnaround last year as well. "The game was almost dead," said Tremblay, saying that DDO is now "very healthy" financially, thanks to the switch to free-to-play. He stated that the change was "a big reason" for the decision to acquire Turbine, and the reason Warner Brothers plans to follow the business model for other games. "This is the way we believe customers want to consume games in the future." It's an interesting look at the growth of microtransactions and the F2P model in the Western market. The full story can be read on the Wall Street Journal's Digital Network.
Apple could become the largest company in the U.S.
In 1997, a lot of investors felt that Apple was well on the way to oblivion. That's the same year that Michael Dell, founder and CEO of Dell, Inc., uttered his famous comment to an audience of IT managers: "I'd shut it [Apple] down and give the money back to the shareholders." The Wall Street Journal's SmartMoney.com is reporting that since Apple is now the country's third-largest company in terms of stock market value and the #1 (Exxon-Mobil) and #2 (Microsoft) companies are seeing declines in their value, Apple could very well end up being the company with the highest valuation by year-end. As the article points out, stock market value isn't always the best indicator of a company's size or economic value. In terms of sales, Apple ranks a paltry #42, which is even lower than Dell at #38. On the other hand, Apple is able to convert 29 cents of each sales dollar into operating profit, while Dell sees only 5 cents on each dollar. Whatever the standard for valuation or "size" of a company may be, it's clear that Apple has made an incredible journey since the bleak days of 1997.
iPad apps: news and magazines
Apple's done a pretty good job convincing the old media that the iPad will save their industry, so we've taken our time trying out the launch titles in the App Store -- it's plain to see that different publishers have radically different ideas about how you're supposed to buy and consume their content, and everything from pricing to UI is currently up in the air. But while the apps we've seen so far are definitely intriguing, we haven't seen any silver bullets yet -- and to be perfectly honest, in several cases we wondered why an app was preferable to an iPad-optimized web site, or even (gasp) a paper subscription. Let's run down the launch lineup, shall we? Update: We added in NPR and Zinio by popular request, check 'em out below!
WSJ iPad subscription sets you back $17.29 per month
You know that free Wall Street Journal iPad app that was introduced yesterday? If you want anything more than the top articles and basic market data you'll need to fork out US$17.29 per month. That's what an iPad WSJ subscription will cost you. That's $3.99 per week. Engadget is quick to point out that a subscription to both the print and online versions of the WSJ will only run you $2.69 a week. The Wall Street Journal is offering full access to the WSJ iPad app for free "for a limited time" to current subscribers of the print and online editions so technically, you can save $6 to $9 a month and get access to the full iPad app if you just sign up for their paper. It's that "for a limited time" that's iffy though. Does that mean one month or six? We all know Murdoch loves the iPad, but man Rupert, you're entering a whole new category of digital distribution. Why price people out of wanting to try out the whole experience?
WSJ iPad subscription officially $17.29 per month -- is Murdoch insane?
So we now have the official price for the WSJ iPad app subscription: $3.99 per week with a monthly credit card charge of $17.29. For that you get subscriber-only content areas such as Business and Markets with access to a 7 day archive that can be downloaded and read at any time. It also offers personalization features and the ability to save sections and articles for later reading. And hey, it's actually a bit less than the rumored $17.99 rate. Without the subscription, the free WSJ iPad app is limited to top articles and market data. Here's the catch: a subscription to both the print and online versions of the Wall Street Journal will currently set you back just $2.69 per week (plus 2 weeks free) for a monthly bill of $11.67... eleven dollars and sixty seven cents. Granted the WSJ claims that the 80% discount is a limited time offer but these newsstand discounts are always available in some form. Greed or insanity? Either way, a pricing model like this won't save print. Update: Fine print says, "Already a WSJ subscriber? Get full access to the iPad™ app for a limited time." That offers some hope to existing subscribers but doesn't make the prospect of subscribing any more attractive to new customers. Unless of course the whole iPad rate can be circumvented by obtaining a login ID and password via the cheaper online-only rate (currently set for $1.99/wk or $8.62/mth). Who's going to try this on Saturday?
WSJ: New iPhone coming this summer, and may be coming to Verizon
Get ready for the "VeriPhone." The Wall Street Journal reports that Apple will be releasing a new iPhone this summer, and "appears to be working" on a model for Verizon Wireless. They claim it's a CDMA-based iPhone, and that mass production is slated to begin in September, but it's unclear when Apple will make the model available. The report notes that one Pegatron Technology Corp. (no relation to Deceptacon Megatron) is contracted to build the model. There have been plenty of rumors already about a Verizon compatible iPhone, but this is the most credible report that we've seen, saying it's happening sometime this year. Since its launch, the iPhone has seen two major refreshes, both occurring during the early summer period, and it appears that Apple will be keeping with this trend. However, if true, the release of a Verizon compatible iPhone marks a significant break from the single-carrier, AT&T life that the iPhone has lived in the U.S. since its launch. In addition, a Verizon-compatible model opens the door for Apple to appeal to an audience that, whether due to a coverage, rate plan or any other issue, did not find the iPhone compelling enough to switch to AT&T. As always, we'll have to wait and see -- the WSJ says a product announcement will take place in "June or July" as usual.
A look at Apple's board
The Wall Street Journal has posted an inside view on Apple's board of directors in the wake of Jerome York's death, and the image they paint is one of a tiny group of people that's strongly loyal to Jobs himself. The group of six people is the smallest board at a Fortune 500 company, and they're all basically handpicked by Jobs, who cleaned house after his return to Apple in the late '90s. He kept only two members back then whom he could trust, and has since only brought on people who will follow his direction. Not that board members aren't consulted -- York was apparently an expert at auditing and governance, and reigned in those areas. But when Jobs wanted his way, board members stayed quiet or got out -- York told the Wall Street Journal last year that he was "disgusted" by the way the company had handled the reports on Jobs' health and that he even wished he'd left the company over his disagreement. But such is Jobs' hold on the board that even York stayed quiet. And that's not likely to change in the future. While Apple's rules require them to fill the vacancy that York left, word is that it's unlikely that they'll add too much new blood to the mix. The last time a seat was vacated, when Google's Eric Schmidt left the board, they simply decided they had enough directors and moved on. While COO Tim Cook is rumored to be the best option to fill the spot, the company likely won't make a move unless Jobs says so. [via 9to5Mac]
