Business

Why engineers make great CEOs

A good read, plus some of my thoughts on why engineers are well suited to lead tech companies.

Symantec: “Antivirus is dead”

Hackers are finding new techniques that are beyond the grasp of antivirus software. You might think that Symantec was throwing in the towel. But no, they’ve got a new strategy. Interesting read.

Jury foreman in Samsung case questions how Google affects Apple’s motivation

Tom Dunham was the jury foreman in the case.

Mr. Dunham said the jury was curious about how Google affected Apple’s motivation in this case. Samsung’s smartphones and tablets use Google’s Android operating system. Apple hasn’t sued Google directly, but has sued Samsung and other device makers that use Android.

“If you really feel that Google is the cause behind this, as I think everybody has observed, then don’t beat around the bush,” said Mr. Dunham, whose job at IBM was to oversee developers expected to file patents. “Let the courts decide. But a more direct approach may be something to think about.”

His comments suggest that Samsung lawyers succeeded with arguments that Samsung was merely a proxy for Apple’s real target: Google and its Android operating system. Apple’s lawyers insisted that Samsung—and not Google—was the defendant in this case.

To support its point, Samsung presented evidence of an email sent by former Apple Chief Executive Steve Jobs saying that Apple should wage a “holy war” on Google.

Straight from the horse’s mouth. I don’t pretend to understand all the complexities of this case, but didn’t this start out to be about wholesale copying of a groundbreaking user interface?

Sony in free fall

The TV business has moved deep into commodity territory, spread as thin as can be. Consumer electronic sales are down, as focus shifts to non-Sony categories. The PlayStation is a bright spot, but just not a large enough business compared to the whole.

Tough times for an innovative firm that brought us a lot of new technologies over the years.

Samsung plans “health” event a week before Apple’s WWDC

The invitation says:

A new conversation about health is about to begin. Be there when it starts.

The event is planned for May 28th, 10:30 am, San Francisco.

I can only imagine that this is a defensive play in anticipation of Apple’s WWDC announcements. Think it’ll work? Think Samsung will take the wind out of Apple’s WWDC sails? Not a chance.

Facebook’s play to become the glue at the center of mobile

From Quartz:

Facebook’s moves today point to its ambition to become the glue that holds the mobile internet together the same way Google is the glue that holds the web together. Google achieved dominance on the pre-mobile internet world wide web with a similar strategy. Not only did it bring people to the websites via search, it also created a massive data-gathering machine that tracks people across the web and runs AdSense, the web’s biggest ad network.

AT&T to roll out in-flight 4G LTE network by late next year

From AT&T:

AT&T* today announced plans to launch a high-speed 4G LTE-based in-flight connectivity service for airlines and passengers in commercial, business and general aviation. The service, planned to be available as soon as late 2015, will be capable of providing in-flight broadband for customers including fast, reliable Wi-Fi and onboard entertainment.

Looks like a shot across the bow of in-flight internet provider Gogo.

Forbes: “Apple, be afraid: China’s Xiaomi going global”

Forbes:

Xiaomi, the Chinese smartphone maker, announced on Wednesday that it is planning to enter ten countries this year. By New Year’s Eve, you should be able to buy the Mi3 in India, Brazil, and Russia as well as Indonesia, Malaysia, Mexico, the Philippines, Thailand, Turkey, and Vietnam. Xiaomi is already selling phones in Mainland China, Hong Kong, Taiwan, and Singapore.

Cupertino should be worried. Xiaomi’s Mi3 in China is cheaper than the iPhone 5c—1,999 yuan versus 4,488—and better—the Xiaomi phone has a larger and sharper screen and a camera with higher-density pixels. Unless you insist on having a depiction of a piece of fruit on your device, you will go with the Xiaomi offering every time. No wonder Xiaomi outsells Apple in China according to research firm Canalys, shipping 7.3 million phones in the fourth quarter of last year. The American company came in at about 7 million in the period, enough for sixth place behind Xiaomi’s No. 5 ranking.

This is disappointing. The poorest level of journalism, if you can even use that term here. There might be something to this. I don’t have any experience with Xiaomi’s Mi3. But when I read the sentence, “Unless you insist on having a depiction of a piece of fruit on your device, you will go with the Xiaomi offering every time”, all credibility is gone.

Forbes, you should be ashamed to have your name associated with this tripe.

Larry Page and Google: The Untold Story

Not sure this is the untold story as much as it is a collection of anecdotes from a variety of sources, but I did find it interesting, if a bit scattered.

There’s coverage of Page, Brin, and Schmidt of course. But there are stories about Andy Rubin and Android, Steve Jobs, Tesla (a big influence on Larry Page), Paul Buchheit and gmail, Marissa Meyer, and a lot more.

Definitely an enjoyable read.

Apple, Google, Intel, Adobe to pay $324 million to settle conspiracy lawsuit

Reuters:

Four major tech companies including Apple and Google have agreed to pay a total of $324 million to settle a lawsuit accusing them of conspiring to hold down salaries in Silicon Valley, sources familiar with the deal said, just weeks before a high profile trial had been scheduled to begin.

And:

The case has been closely watched due to the potentially high damages award and the opportunity to peek into the world of Silicon Valley’s elite. The case was based largely on emails in which Apple’s late co-founder Steve Jobs, former Google CEO Eric Schmidt and some of their Silicon Valley rivals hatched plans to avoid poaching each other’s prized engineers.

In one email exchange after a Google recruiter solicited an Apple employee, Schmidt told Jobs that the recruiter would be fired, court documents show. Jobs then forwarded Schmidt’s note to a top Apple human resources executive with a smiley face.

Glad that’s over. I can’t imagine this would be anything but a giant distraction.

Game of Phones

A kickstarter based on a deck of custom cards and a group of friends with smartphones. Great idea.

Amazon and HBO ink exclusive content deal for Amazon Instant Video

This is a big deal for Amazon and a bit of bad news for Netflix.

Amazon.com, Inc. today announced a content licensing agreement with HBO, making Prime Instant Video the exclusive online-only subscription home for select HBO programming. The collection includes award-winning shows such as The Sopranos, Six Feet Under, The Wire, Big Love, Deadwood, Eastbound & Down, Family Tree, Enlightened, Treme, early seasons of Boardwalk Empire and True Blood, as well as mini-series like Band of Brothers, John Adams and more. Previous seasons of other HBO shows, such as Girls, The Newsroom and Veep will become available over the course of the multi-year agreement, approximately three years after airing on HBO. The first wave of content will arrive on Prime Instant Video May 21. This is the first time that HBO programming has been licensed to an online-only subscription streaming service. This programming will remain on all HBO platforms.

A smart move for Amazon and Fire TV.

Tim Cook publicly thanks Peter Oppenheimer for years of service

One last bit from the results call:

Finally, before we start the Q&A, I would like to take a minute to talk about my dear friend and colleague Peter Oppenheimer. As you know, Peter will be transitioning from the CFO role in June. Peter has been Apple’s CFO for 10 years and the list of his accomplishments is immense. Apple is now more than 20 times the size it was when Peter became our CFO and his expertise, leadership and incredibly hard work had been instrumental to the company’s success. I’d like to thank him very publicly for his contributions to Apple, from the very bottom of my heart and wish him all the best in his approaching retirement at the end of September.

And I’d also like to recognize him that he has never missed guidance in the 10 years as CFO which must be an all-time record for CFOs. We’re really happy and fortunate to have someone with Luca’s talent on Board to replace Peter. He has over 25 years of experience, building and leading finance teams in global companies and has an exceptionally broad international background, which you might be able to detect from his accent. He’s been managing most of Apple’s financial functions since coming on Board last year and has done an outstanding job. I’m looking forward to working with Luca even closer as Apple’s next CFO.

This marks a true public transition from Peter Oppenheimer to Luca Maestri, handled with grace by Tim Cook.

Apple announces seven way stock split

There was a lot to digest in yesterday’s earnings conference call. One item that was mentioned, almost as an afterthought, was Tim Cook’s announcement of a seven way stock split. Read the original post for details.

Transcript of Tim Cook and yesterday’s Apple earnings call

Want all the detail of yesterday’s call?

Here’s a link to Macworld’s edited transcript, focused on Tim Cook’s comments.

And here’s a more complete transcript from Seeking Alpha (free reg-wall). The Seeking Alpha transcript includes Tim’s comments, as well as those from Nancy Paxton (Senior Director, Investor Relations) and Luca Maestri (VP of Finance and Corporate Controller) as well as the Q&A that followed.

Netflix is about to get more expensive

Last time Netflix tried to raise their monthly rate, the company took it on the chin, hemorrhaging customers and taking a stock nose dive. This time they are being a little more cautious.