The Unofficial Apple Weblog (TUAW)

Apple board member Jerome York passes away

Megan Lavey — Thu, 18 Mar 2010 12:45:00 EST

[Apple has updated its home page with the tribute above.]

Apple board member Jerome York died today after reportedly suffering a brain aneurysm on Wednesday.

York, 71, has been on Apple's Board of Directors since 1997. His former positions include chief financial officer at IBM and Chrysler, chief executive officer of Micro Warehouse and a vice chairman of Tracinda. At the time of his death he was the chairman, president and CEO of Harwinton Capital. York was a graduate of West Point, MIT and the University of Michigan; he started his career at Chrysler as an engineer and worked his way up to the executive suite.

We offer our condolences to Mr. York's family and friends.

[Via MarketWatch]

Apple board member Jerome York passes away originally appeared on The Unofficial Apple Weblog (TUAW) on Thu, 18 Mar 2010 12:45:00 EST. Please see our terms for use of feeds.

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HTC responds to Apple's lawsuit, will fight

Michael Grothaus — Thu, 18 Mar 2010 10:00:00 EST

Filed under: Apple Corporate

HTC has finally responded about the patent-infringement lawsuit Apple filed against it two weeks ago. In the lawsuit Apple alleged that HTC was infringing on 20 patents concerning the iPhone user interface and the underlying hardware and architecture. "We can sit by and watch competitors steal our patented inventions, or we can do something about it. We've decided to do something about it," Steve Jobs said. "We think competition is healthy, but competitors should create their own original technology, not steal ours."

Today Jason Mackenzie, vice president of sales and marketing at HTC America replied, "We strongly disagree with Apple's actions and plan to use all the legal tools available to defend ourselves. Choice is important for customers, and healthy competition is instrumental to that."

Apple's filing cites twelve HTC phones, including five Google Android handsets and seven that use Microsoft's Windows Mobile software. Apple is requesting compensation for the infringement and attorneys' fees, as well as an injunction against products and services that infringe the asserted patents.

While Google wasn't named in the lawsuit they issued a statement saying they "stand behind our Android operating system and the partners who have helped us to develop it." Google declined to tell Forbes if they would assist HTC in fighting the lawsuit by lending their teams of lawyers that specialize in antitrust and IP issues. "Given the seriousness of the case and the allegations, we expect it to be a long, drawn-out process," Mackenzie said.

HTC responds to Apple's lawsuit, will fight originally appeared on The Unofficial Apple Weblog (TUAW) on Thu, 18 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

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Apple's new Senior Prototype Engineer to work on wearable computing

Dave Caolo — Mon, 15 Mar 2010 17:30:00 EST

Filed under: Apple Corporate

More news from the HR department, as Apple's hiring is extending beyond the Googleplex raid noted earlier. The company's new Senior Prototype Engineer, Richard W. DeVaul, has a Ph.D. in Media Arts & Sciences from MIT. The cool part, Computerworld notes, is that DeVaul has experience in wearable technologies. He's the co-founder of AWare Technologies, and his dissertation was on a project called "The Memory Glasses," a wearable memory aid that required minimal attention from the user.

The only wearable technology that Apple has produced is the Nike+ iPod kit. When stuck inside a sneaker (or attached to the laces), it feeds information to an app running on an iPod or iPhone regarding a jogger's speed, distance, calories burned and so on. While serious runners have questioned its accuracy, it has motivated a number of otherwise couch-bound geeks to hit the street.

As Computerworld points out, Apple has patented a large number of wearable fitness devices lately. Perhaps it's these that DeVaul will be working with, though we imagine that such a brilliant engineer will have his own ideas. In either case, we're looking forward to what comes of this new collaboration.

[Via MacRumors]

Apple's new Senior Prototype Engineer to work on wearable computing originally appeared on The Unofficial Apple Weblog (TUAW) on Mon, 15 Mar 2010 17:30:00 EST. Please see our terms for use of feeds.

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NY Times details Google/Apple relationship souring

Dave Caolo — Mon, 15 Mar 2010 12:15:00 EST

Filed under: Apple Corporate

What began as a jovial relationship between Google and Apple has devolved into an ugly personal and legal battle that's only getting worse.

In 2006, Google CEO Dr. Eric Schmidt joined Apple's board of directors. Google and Apple collaborated on the iPhone's mapping services, and a year later, Schmidt joined Jobs on stage during the iPhone's introduction at Macworld Expo. The two men were all smiles and compliments, and the venture looked bright.

After the iPhone's release in the US, both companies went about their business, both collaboratively and independently. While Apple worked on solidifying a foothold in the global smartphone market, Google continued development on Android and the Chrome OS -- both competitors to Apple's iPhone and OS X. Eventually, the divergent interests of Apple and Google came to a head, and Dr. Schmidt resigned from his position on Apple's board due to "...conflicts of interest."

Today, The New York Times points out, the chasm between these two men and their companies is deep and personal. At a recent town hall-style employee meeting, Jobs had harsh words for his former collaborator:

"We did not enter the search business. They entered the phone business. Make no mistake: they want to kill the iPhone. We won't let them."

Continue reading NY Times details Google/Apple relationship souring

NY Times details Google/Apple relationship souring originally appeared on The Unofficial Apple Weblog (TUAW) on Mon, 15 Mar 2010 12:15:00 EST. Please see our terms for use of feeds.

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Apple tops Consumer Reports' tech support survey, second place not even close

Dave Caolo — Thu, 11 Mar 2010 13:00:00 EST

Filed under: Apple Corporate, Hardware, Apple

On Wednesday, Consumer Reports published the results of its latest tech support survey. Apple was on top for both laptops and desktops, well ahead of the company in second place.

Consumer Reports asked 7,000 subscribers about their satisfaction with their computer companies across categories like problem solved, phone waits, phone staff and online support. Each answer was issued a point value, with a maximum of 100 points.

Among laptops, Apple scored 86 points. The second place finisher, Lenovo, accumulated up 63 points, for an impressive margin of 23 points. The rest of the leader board includes Toshiba (60 points), Dell (56 points), HP/Compaq (53 points), and Acer/Gateway/eMachines (39 points).

Apple scored even better with desktops, racking up 87 total points and leading the field in all categories. Here the 2nd place competitor was Dell which scored 55 points among the participants, a full 32 points behind.

Of course, fanboys like you and me are convinced of Apple quality. Now we have some good 'ol empirical data to toss at our PC-thumping friends and relatives.

[h/t to cnet & Jim Dalrymple]

Apple tops Consumer Reports' tech support survey, second place not even close originally appeared on The Unofficial Apple Weblog (TUAW) on Thu, 11 Mar 2010 13:00:00 EST. Please see our terms for use of feeds.

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Steve Ballmer compliments Apple, Hell freezes over

Michael Grothaus — Tue, 09 Mar 2010 11:00:00 EST

Filed under: Apple Corporate, Rumors

The Seattle Times is reporting that Steve Ballmer, who notoriously laughed at the iPhone, had some good things to say about it last week in a speech he gave at the computer-science building at the University of Washington. "Apple's done a very nice job that allows people to monetize and commercialize their intellectual property," he said.

Ordinarily, a comment like this might not be significant, but in this case it adds fuel to the fire that Apple will replace Google with Bing as the default search engine in the next iPhone OS. Google and Apple are increasingly at odds and it's possible that Apple may see an alliance with Microsoft as a way to stave off Google's mobile growth.

For Microsoft, a deal that puts Bing on the iPhone would be a huge win as mobile search is becoming increasingly common. Smart phones are becoming more mainstream and the iPhone is increasingly dominating the handset market.

Currently Microsoft offers a Bing iPhone app. Whether Bing goes further on the iPhone remains to be seen because Ballmer, rather uncharacteristically, is staying mum. The Seattle Times cornered Ballmer after his speech and asked is there an "enemy of my enemy is my friend" thing going on, to which Ballmer just smiled, said he couldn't answer and climbed into his car.

Steve Ballmer compliments Apple, Hell freezes over originally appeared on The Unofficial Apple Weblog (TUAW) on Tue, 09 Mar 2010 11:00:00 EST. Please see our terms for use of feeds.

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iPad ad reveals book pricing and NYT button

Dave Caolo — Mon, 08 Mar 2010 14:30:00 EST

Filed under: Apple Corporate, iPad

The iPad television ad that appeared during Sunday night's Oscars ceremony showed off more than the iPad's functionality. It revealed some book pricing, too.

Several of the books had prices clearly displayed (you'll get a better look here), ranging from US$8 to $15. For example, Sen. Edward Kennedy's "True Compass: A Memoir" is listed for $14.99, while "Three Cups of Tea: One Man's Journey to Change the World... One Child at a Time" by Greg Mortenson and David Oliver Relin is priced at $7.99.

By contrast, Appleinsider reports, those titles sell for $19.25 and $7.19 on the Kindle, respectively.

We reported on a leaked list of likely initial iBookstore titles and prices in late February, but this is the first official indication of pricing from Apple -- for the record, all the prices above match up with the file we saw. It's notable that the list appears to include New York Times bestsellers as a separate category, which aligns with the sharp-eyed observations of reader Alejandro; he noticed the distinctive Times logo in the iBooks app at the bottom of the screen (see image below) at the end of the ad.

Based on the leaked list, other titles we might expect to see at launch are "The Last Song" by Nicholas Sparks for $9.99, "U is for Undertow" by Sue Grafton for $12.99 and "The Wrecker" by Clive Cussler for $12.99.

The iBooks application represents Apple's first foray into the ebook market, currently dominated by the Kindle and Nook. The competition is heating up before the iPad even hits stores, as HarperCollins and Macmillan have forced Amazon to re-visit their pricing policies. In January of this year, before the iPad's introduction, Amazon adopted the 70/30 revenue split that the App Store uses. An epic battle is about to erupt which can only mean one thing: Better choices and products for us, the customers!

iPad ad reveals book pricing and NYT button originally appeared on The Unofficial Apple Weblog (TUAW) on Mon, 08 Mar 2010 14:30:00 EST. Please see our terms for use of feeds.

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Apple prepping Wi-Fi iPhone for China

Dave Caolo — Mon, 08 Mar 2010 12:30:00 EST

Filed under: Apple Corporate, Apple Financial, iPhone

At long last, Apple and China Unicom Ltd. are working to introduce Wi-Fi-enabled iPhones to China.

The iPhone has failed to thrive in China, due in part to an active black market and the Golden Shield Project (GSP), which censors certain Internet content. To comply with the GSP, devices that include wireless Internet have been required to use China's own WAPI standard. Meeting that requirement forced Apple to re-design the iPhone for China.

In the meantime, a change in policy permitted devices to have both WAPI and Wi-Fi, but by then it was too late, and the 1st round of re-designed iPhones were released in China without Wi-Fi.

Now, Unicom Chief Executive Chang Xiaobing says that iPhones with Wi-Fi will be made available to his company's customers. He didn't announce when that will happen, but did suggest that existing customers (without Wi-Fi) will be compensated, perhaps with expanded use of Unicom's high-speed 3G network.

Unfortunately, this probably won't send iPhone sales soaring. There's still a powerful black market to contend with and less expensive iPhones in Hong Kong.

[Via Silicon Alley Insider]

Apple prepping Wi-Fi iPhone for China originally appeared on The Unofficial Apple Weblog (TUAW) on Mon, 08 Mar 2010 12:30:00 EST. Please see our terms for use of feeds.

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Final Cut dominant among Oscar documentary nominees

Dave Caolo — Mon, 08 Mar 2010 11:30:00 EST

Filed under: Apple Corporate, Multimedia, Software, Steve Jobs

Steve Jobs and the iPad both appeared on TV during last night's Academy Awards, but they weren't the extent of Apple's presence.

Cnet reports this morning that the majority of the "Documentary Feature" and "Documentary Short" nominees -- 9 out of 10 in fact -- were made using Final Cut Studio, Apple's professional video editing package. Cnet spoke with some of the filmmakers, including Dan Wilken, online editor of "Food, Inc," who sung the suite's praises. "...[switching to Final Cut Studio] made the most sense economically and allowed us to do everything we needed."

Final Cut isn't the only professional editing software available but it is the most popular; market research firm SCRI International claim is has a near 50% market share among nonlinear editors.

With this in mind we get an even clearer picture of Steve's motivation for showing up. Certainly to have fun and experience the show, cheer on Up and other Disney offerings and keep his company and products in the minds of a very lucrative market.

Final Cut dominant among Oscar documentary nominees originally appeared on The Unofficial Apple Weblog (TUAW) on Mon, 08 Mar 2010 11:30:00 EST. Please see our terms for use of feeds.

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Apple job listing hints at official App Store advertising

Michael Grothaus — Fri, 05 Mar 2010 09:00:00 EST

Filed under: Apple Corporate, Developer

A little over a month ago, Steve Jobs blasted Google at an Apple Town Hall meeting for entering Apple's territory. "We did not enter the search business. They entered the phone business," Jobs told employees. "Make no mistake: they want to kill the iPhone. We won't let them [...] This 'don't be evil' mantra? It's bullshit." Notice Jobs didn't say, "We didn't enter the ad business."

A recent Apple job listing for a Senior Interactive Web Developer pretty much confirms that Apple is entering the mobile advertising business head on. The listing begins "Apple advertising is an opportunity to redefine the advertising on mobile devices. It's an exciting environment and a fast-paced development organization. We're looking for an experienced interactive developer." The successful applicant will be responsible for developing the front end web UI development of compelling, interactive digital advertising experiences.

The posting hints that Apple wants to make it as easy as possible for developers to monetize their apps. As AppleInsider points out, Apple wants to make it as trivial for developers to add advertisement placements to their applications as it currently is to add buttons or interface controls.

With the iPhone and Android totaling 75% of U.S. smartphone web traffic as of last November, it's no surprise Apple wants to enter the ad business on their device that is responsible for 51% of the market.

Last November, Google bought Admob, the largest mobile ad company in the world, for $750 million. Shortly thereafter rumors emerged that Apple had been in talks with Admob before Google's deal. Less than two months later, Apple acquired Admob competitor Quattro Wireless in a deal valued at $275 million.

It looks like Apple is as serious about the mobile ad business as Google is about the smartphone business.

Apple job listing hints at official App Store advertising originally appeared on The Unofficial Apple Weblog (TUAW) on Fri, 05 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.

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Incoming, outgoing Apple employees

Mike Schramm — Thu, 04 Mar 2010 22:45:00 EST

Filed under: Apple Corporate, Software, Apple, Security

A few Apple employees played some musical chairs this week. Executive Pablo Calamera, who was in charge of MobileMe while at Apple, is off to work as the CTO of Thumbplay, a company that peddles ringtones and music to mobile devices.

HR shouldn't have to change the big "35,000 employed worldwide" sign, though: former Mozilla security chief Window Snyder was picked up by Apple this week. She'll jump in as a senior security product manager, a job that will take advantage of her work both at Mozilla and previously at Microsoft, where she worked on both Windows XP and Windows Server 2003. Sure, she's got the experience, but has she ever worked for a company that does this for its incoming employees? Didn't think so.

Incoming, outgoing Apple employees originally appeared on The Unofficial Apple Weblog (TUAW) on Thu, 04 Mar 2010 22:45:00 EST. Please see our terms for use of feeds.

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Apple tops Fortune's Most Admired Companies list again

Mike Schramm — Thu, 04 Mar 2010 21:30:00 EST

Filed under: Apple Corporate, Surveys and Polls, Apple, iPad

For the third year in a row, Apple has topped the list of Fortune's Most Admired Companies. The list was based on a poll of 4,200 executives across the world's top companies, and by the highest margin ever, they picked the Cupertino-based "mobile device company" as the world's most admired brand. Obviously the millions of MacBooks, iPhones, and iPods played a factor, but it sounds like the iPad sealed the deal this year. BMW's CEO is quoted waxing poetic about Apple's brand power: "The whole world held its breath before the iPad was announced. That's brand management at its very best."

GE has actually had the most appearances at number one on the list, and Apple needs to stay high for two more years to take that record. But it's certainly possible -- if the iPad is as popular as expected, and Apple follows it up next year with an updated version and the kind of software revolution that the iPhone brought to handheld computing, they probably will nail down the top spot yet again.

Apple tops Fortune's Most Admired Companies list again originally appeared on The Unofficial Apple Weblog (TUAW) on Thu, 04 Mar 2010 21:30:00 EST. Please see our terms for use of feeds.

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Apple pressuring music publishers over Amazon Daily Deal

Dave Caolo — Thu, 04 Mar 2010 12:30:00 EST

Filed under: Apple Corporate, iTS, Apple Financial, iTunes

Amazon has used low-priced, exclusive "Daily Deals" to promote its MP3 store successfully, and Apple's not happy about it. In fact, the iTunes team is trying to talk publishers out of participating.

According to Billboard, participating labels entered into the program with Amazon in 2008 without paying a thing. It was simply meant to increase the store's publicity. Two years later, that's changed. An unnamed major-label head of sales told Billboard that "[the] promotion morphed into something where the labels make arrangements to provide an exclusive selling window with Amazon for a big release expected to do a lot of business on street date [the day the new release is available for general retail sales]."

Two years in, the labels are motivated to offer Amazon first dibs on major releases at a significant discount, and that's gotten Apple's attention. Billboard's sources suggest that iTunes executives are trying to persuade labels to stop offering Amazon these exclusives, and have even gone so far as to pull their own promotions for those releases.

In response, Billboard reports, certain label executives recently opted out of Daily Deal promotions for such big names as Corinne Bailey Rae, Lady Antebellum and Ke$ha (Sony Music Entertainment denies considering a Daily Deal promotion for Ke$ha's "Animal"). Additionally, Amazon is said to be altering the deal to not require exclusivity, but Apple's still unsatisfied.

Oh what a tangled web we weave, when first we practice to sell digital music.

[Via AppleInsider]

Apple pressuring music publishers over Amazon Daily Deal originally appeared on The Unofficial Apple Weblog (TUAW) on Thu, 04 Mar 2010 12:30:00 EST. Please see our terms for use of feeds.

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Rupert Murdoch confirms WSJ for iPad

Dave Caolo — Wed, 03 Mar 2010 12:30:00 EST

Filed under: Apple Corporate, Multimedia, Rumors, iPad

Rupert Murdoch has confirmed, in a Q & A following his announcement of a New York 'metro' section for the Wall Street Journal, that an app for the iPad is under development (WSJ story here, behind the paywall). There's an iPhone app available now, and it's expected that the iPad version will expand upon it, with attention being paid to the iPad's big screen.

What's most interesting about this story is the extreme secrecy with which Apple is handing the process. it seems that WSJ developers do have access to a pre-release iPad, which Murdoch confirms is "kept under padlock and key." Not only that, but an Apple employee turns the key every night to confirm that the iPad is where it should be -- locked up tight, safe and sound. Not even preferred developers have earned Apple's full trust.

Apple paranoid? We can't imagine such a thing.

[via MacNN]

Rupert Murdoch confirms WSJ for iPad originally appeared on The Unofficial Apple Weblog (TUAW) on Wed, 03 Mar 2010 12:30:00 EST. Please see our terms for use of feeds.

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iBookstore expanding internationally ... eventually

Chris Rawson — Tue, 02 Mar 2010 18:30:00 EST

Filed under: Apple Corporate, Retail, iPad

The announcement of the iBookstore wasn't particularly surprising -- analysts had expected such a move from Apple for months. What was somewhat surprising was that as of the initial announcement of the iPad and its tie-in with the iBookstore, there were no announced plans for international versions of Apple's e-book marketplace. Up until today, the only officially announced venue for the iBookstore has been the United States.

According to MacRumors, a new job listing has been posted on Apple's website for "Manager, iBooks Asia Pacific & Canada." Part of the managerial position's role includes being "the primary person responsible for building the book business in Asia Pacific and Canada" -- for now, "Asia Pacific" is only loosely defined as "Australia, New Zealand, and other countries." It stands to reason that Apple will eventually want to expand its iBookstore to all markets currently served by the iTunes Store, but as MacRumors notes, no job postings have yet appeared for Europe, Asia, or other regions.

Considering how prohibitively expensive paper books are here in New Zealand, I'm greatly looking forward to the launch of the iBookstore. In the US, ebooks generally aren't priced competitively compared to their paper cousins (something I've never been able to comprehend), but in the South Pacific, ebooks are very attractive alternatives to paperbacks, which can cost upwards of NZ$20 each. Once the iBookstore makes it down here, Apple has at least one guaranteed customer -- as long as the iBookstore isn't restricted solely to the iPad, that is.

[Via MacRumors]

iBookstore expanding internationally ... eventually originally appeared on The Unofficial Apple Weblog (TUAW) on Tue, 02 Mar 2010 18:30:00 EST. Please see our terms for use of feeds.

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Apple sues HTC for patent violations

Mel Martin — Tue, 02 Mar 2010 11:00:00 EST

Filed under: Apple Corporate, Odds and ends, iPhone

It's a festival of lawsuits. This morning Apple has announced it is going after Taiwan based phone giant HTC for infringing on 20 patents concerning the iPhone user interface and the underlying hardware and architecture. The lawsuit was filed with the U.S. International Trade Commission and in the U.S. District Court in Delaware.

"We can sit by and watch competitors steal our patented inventions, or we can do something about it. We've decided to do something about it," said Steve Jobs, Apple's CEO. "We think competition is healthy, but competitors should create their own original technology, not steal ours."

Although the Google Android phone is not mentioned in the lawsuit, HTC makes several Android handsets, and the touchscreen models look quite a bit like the iPhone screen. HTC has not yet reacted to the lawsuit.

Apple's lawyers are busy. There is ongoing litigation with Nokia over patents and technology licensing.

For more detailed dissection of each of the patent claims, check out Engadget's post.

Apple sues HTC for patent violations originally appeared on The Unofficial Apple Weblog (TUAW) on Tue, 02 Mar 2010 11:00:00 EST. Please see our terms for use of feeds.

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Despite legal threats, Apple stair back on Ebay

Dave Caolo — Tue, 02 Mar 2010 10:15:00 EST

Filed under: Apple Corporate, Retail, Odds and ends

A former Apple Store employee has defied legal threats and re-listed a broken stair on Ebay.

In 2008, three broken stairs were removed from the spiral staircase in the Fifth Avenue Apple retail store in New York. Former employee Mark Burstiner asked the Seele GmbH employees who were hauling them away if he could have one, and they said yes, according to Mark's story on Gizmodo. After storing it at his place for a while, he decided to put it up for auction on Ebay.

Shortly thereafter, Seele contacted Mark to claim ownership of the stair and demand that the auction be taken down and the stair returned to them. Mark removed the auction but refused to return the stair, claiming that it had become his property.

Now, the Ebay listing is back up. As of this writing, the bid is at US$9,9500. It's only a 3-day auction, so get your bid in early. Also be aware that the winner will take home a massive glass step (it weighs more than 200lbs) as well as Seele's ire -- they still claim ownership of the stair. Buyer beware, indeed.

[Via ifoapplestore]

Despite legal threats, Apple stair back on Ebay originally appeared on The Unofficial Apple Weblog (TUAW) on Tue, 02 Mar 2010 10:15:00 EST. Please see our terms for use of feeds.

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Al Gore taunted at shareholders' meeting, gets 10k more options anyway

Mike Schramm — Mon, 01 Mar 2010 22:00:00 EST

Filed under: Apple Corporate, Apple Financial, Apple

Last week in this post and last night during the talkcast, we mentioned that Apple's shareholders had passed on a sustainability proposal during last week's meeting (the first time in recent memory that Apple didn't go for stricter environmental standards), but apparently the shareholders weren't just against the proposal. At least one of them was openly heckling Al Gore about his work with the environment. Shelton Ehrlich (who apparently has a reputation among Apple shareholders as a conspiracy believer) stood up and called Gore a "laughingstock," railing against Gore's re-election to the board of directors. Good times -- we're sure Gore is used to dealing with controversies like that, but we wouldn't have expected it at the Apple shareholder meeting.

Still, that hasn't dissuaded him from working with the company -- according to an SEC filing, he also picked up another 10,000 stock options from Apple, netting him more than $227k according to Apple's current stock price. Good deal. At least one of Apple's shareholders isn't too happy with Gore's work for the environment, but the relationship between Gore and Apple seems like it's here to stay for a while.

Al Gore taunted at shareholders' meeting, gets 10k more options anyway originally appeared on The Unofficial Apple Weblog (TUAW) on Mon, 01 Mar 2010 22:00:00 EST. Please see our terms for use of feeds.

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TUAW Fact Check: Apple using underage labor? No.

Chris Rawson — Mon, 01 Mar 2010 00:00:00 EST

Filed under: Apple Corporate, Apple

When a lot of people get their news electronically, skimming over headlines through news aggregators, RSS feeds, and retweets on Twitter, sometimes the majority of information people will get from an article comes from the headline.

When a headline leans towards the sensational side, or doesn't accurately reflect the information that's actually contained in the article, it's easy for poorly-represented news to spread like wildfire. This article from the UK's The Daily Telegraph, regarding Apple's self-initiated audit of its overseas manufacturing facilities, is a perfect example, with its attention-grabbing headline: "Apple Admits Using Child Labour." The sub-headline isn't any better: "Apple has admitted that child labour was used at the factories that build its computers, iPods and mobile phones."

Once a person reads those words, his or her knee-jerk reaction is most likely going to be one of disgust and horror. "How could you, Apple?" they might say. If this hypothetical reader owns a Mac or an iPhone, their eyes might glance over at it with anguished guilt; if they don't own any products from Apple, it's just one more reason not to buy them.

If you dig beyond the headline, however, to the meat of the Telegraph's article, where the actual reporting finally begins? Then you get a completely different story as early as the first sentence: "At least eleven 15-year-old children were discovered to be working last year in three factories which supply Apple." That's pretty far from the image conjured by the headline, of legions of school-aged children lined up in factories and slapping together MacBook Pros when they should be slapping together algebra homework. Instead, we find a relatively small number of teenaged factory workers -- reprehensible, but not unusual at all for overseas factories. The end of this first sentence is even more important, because it puts the focus where it belongs: three factories which supply Apple. Two paragraphs later, we find another very important bit of news not reflected in the headline: "Apple said the child workers are now no longer being used."

Other news sites performed better reporting on the matter, but at least one still had an easily misinterpreted headline. Read on to find out more.

Continue reading TUAW Fact Check: Apple using underage labor? No.

TUAW Fact Check: Apple using underage labor? No. originally appeared on The Unofficial Apple Weblog (TUAW) on Mon, 01 Mar 2010 00:00:00 EST. Please see our terms for use of feeds.

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No Apple stock split...for now.

David Winograd — Sat, 27 Feb 2010 19:00:00 EST

Filed under: Apple Corporate, Apple Financial

Thursday, Briefings.com, CNBC and a passel of other market analysts predicted that a 4 for 1 stock split would be announced at the Apple Shareholder Meeting. This rumor moved the market, but there are conflicting opinions to why. First, for the uninitiated, a stock split is a zero sum game. One interpretation is that a firm considers its stock too highly priced for the average consumer and decides to split. For example, let's say that Apple is trading for $200 and you have one share. If a 4 for 1 stock split takes place, you will wind up 4 shares, instead of 1, but each share will be valued at $50. Did you gain or lose any money? No. It's all on paper. However, to those not familiar with the Buttonwood tree, and that's a lot of us, it sounds like 'quick buy Apple and you'll be getting 4 times as much'. The case for this sort of stupidity is well made by Barrons.

Stock splits are nothing new to AAPL. They've split 2 for 1 three time in the past, in June 1987, June 2000 and February 2005.

There are two general schools of thought on the reason behind stock splits, and they are total opposites. The first theory is that a company will split a stock if it is in trouble to allow lower dollar investors to buy their shares at half the price and thus incur less risk. The other school of thought is that a good company realizes their stock is just too expensive for the small trader who has some cash on the sidelines. It is meant to give the small guy an easier way to buy some stock without needing to commit the $200 for a share. Both sides have their points and, to an extent, both points are based on smoke and mirrors since they do not effect the worth of the company or the aggregate value of the stock by one penny.

Continue reading No Apple stock split...for now.

No Apple stock split...for now. originally appeared on The Unofficial Apple Weblog (TUAW) on Sat, 27 Feb 2010 19:00:00 EST. Please see our terms for use of feeds.

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