Google Goes on Dell PCs

Computer maker ships Google search, toolbar, and desktop products on its PCs. May 26, 2006
Dell on Friday started shipping PCs with defaults set to the Google search engine, a move that reflects the rising competition between the search giant and Microsoft.

Dell spokesperson Jesse Blackburn said the No. 1 PC maker also will begin shipping all of its desktop and notebook PCs with Google Desktop and the Google browser toolbar at the end of the month.

Google CEO Eric Schmidt revealed the plan at a Goldman Sachs Internet investor conference in Las Vegas on Thursday.

The deal represents a coup for Google, which has been fighting with Microsoft over access to the default search engine bragging rights.

Google has sought to have the U.S. Justice Department and the European Commission intervene on its behalf to keep Microsoft from making its search engine into the default for the upcoming Windows Vista operating system.

But earlier this month Microsoft convinced the Justice Department that the search engine default could be changed easily

While the terms of the deal have not been disclosed, Google will provide Dell with a much-needed source of revenue after its recent disappointing financial results.

Moors & Cabot Capital Markets analyst Cindy Shaw believes the Google deal would add at most $0.10, and more likely only a few cents, to Dell’s annual earnings per share.

“We continue to believe it should take at least several more quarters for Dell’s EPS to recover from current service, quality, and pricing challenges,” she wrote in a research note.

Dell shares rose $0.37 to $24.67 in recent trading, while Google shares climbed $0.62 to $383.61.

Google also has a co-branded portal with Gateway, pointed out Roger Kay, president of the research firm Endpoint Technologies Associates. He believes the deal will have a material impact on Dell’s finances and will add a major partner to Google.

“I think it’s going to help Google quite a lot,” he said. “It’s pretty clear it’s in Google’s interests to do as many companies as they can. The more the merrier. But Dell is certainly the biggest, and it’s a big coup for Google.”

Co-branded Page
The desktop and notebook PCs will be shipped to all consumer purchasers and small and medium business customers of the Round Rock, Texas, computer maker. The Google software also will be shipped on systems for large corporate customers, unless they specify otherwise, said Mr. Blackburn.

If the company doesn’t have a preference, then their machines will ship with the Google tools and defaults.

Dell is setting up a co-branded site with Google. Recent Dell computers have been defaulting to a Dell page co-branded with IAC/InterActiveCorp’s My Way. The searches default to IAC’s Ask.com search engine, but users can also check results from Google, Yahoo, and LookSmart by clicking a tab.

The Google default that Dell will be instituting can be changed to other search engines as well.

Source: Red Herring

Michelin CEO killed in accident

Edouard Michelin was killed in a boating accident off Ile de Sein in Brittany in western France.

May 27, 2006: 12:15 AM EDT

ATLANTA (CNN) - Michelin CEO Edouard Michelin was killed Friday in a boating accident off Ile de Sein in Brittany in western France, the company's communications department told CNN.
The company said that an investigation has been launched into the accident and that managing partner Michel Rollier has assumed leadership of the company.
The news of the death was greeted with dismay by French political and business leaders, with President Jacques Chirac leading tributes.
"At the head of a company which has a special place for French people, Edouard Michelin had considerably modernized his company and made it into a universally renowned French industrial champion," Chirac said in a statement.
Michelin was regarded as one of France's leading business executives and his death cast a particular shadow at a time when France has been going through a crisis of confidence amid political scandals and disagreement over economic reform.
"For a new generation of French company heads, this is really very cruel," Laurence Parisot, head of France's MEDEF employers group told French radio.
The French local authority in Brest said the alarm was raised when Michelin and local fisherman Guillaume Normant failed to return from a fishing trip. His body was later found but rescuers failed to recover any trace of his companion.
The Michelin company, the world's largest tire manufacturer, said that Michel Rollier, who had been joint managing partner along with Edouard Michelin, would "assure the continuity of the company's management."
Michelin Man
Edouard Michelin's great grand-father set up the company with his brother Andre in 1889 and their brainchild quickly became embedded in French culture.
In 1898, the company brought out the Michelin Man, a jovial, rotund figure made of tires who came to symbolize the company.
At the turn of the 20th century, Michelin then published its first Red Guide.
The guide encouraged people to use their cars to travel around France and gave advice on the best restaurants and hotels in the region, resulting in the coveted "Michelin Star" awards given out to dining establishments today.
Edouard Michelin entered into the prestigious family set-up in 1985, armed with an engineering degree from the Ecole Centrale de Paris.
He had a stint in France's navy from 1987 to 1988 before going back to the Michelin company where he held various posts in areas such as production and sales.
Edouard then succeeded his father Francois, who had run Michelin for more than 40 years, as head of the company in 1999.
Faced with growing competition from global rivals such as Bridgestone, Edouard Michelin decided to cut 7,500 jobs in 1999 and restructure the company's north American activities to improve the group's profitability.
The decision to cut the jobs led to an attack on Edouard Michelin by then French Prime Minister Lionel Jospin, who called on workers and politicians to unite in protest at the move.
However, Edouard Michelin rode through the backlash, saying the job cuts were necessary to enable his family's company to compete with global rivals in Japan and the United States.
Edouard Michelin had presided over the company's annual shareholder meeting only two weeks ago. His warning that it would be hard for the company to achieve its financial targets for the year due to higher commodity prices sent Michelin shares sliding earlier this month.
Edouard Michelin leaves behind a wife and six children.

-- Reuters contributed to this report.

Apple plugs into the world of Windows

Steve Jobs, the chief executive of Apple Computer, is famous for making biting comments about his rivals. And since the 1980s, no rivals have loomed larger than Microsoft and its founder, Bill Gates.


“The trouble with Microsoft is they have no taste,” said Mr Jobs in a 1996 PBS documentary. “I don’t mean that in a small way, I mean that in a big way.”

In an interview with the New York Times in 1997, Apple’s co-founder quipped: “I wish [Bill Gates] the best, I really do. I just think he and Microsoft are a bit narrow. He’d be a broader guy if he had dropped acid once or gone off to an ashram when he was younger.”

It would be tempting to think that Apple turned a new leaf on Wednesday with its decision to release a piece of software called Boot Camp, which allows its computers to run using Microsoft’s Windows operating system. But those who harbour any illusions of a final detente between Apple and its arch rival would do well to consult Apple’s web site.

“With Boot Camp, the Mac can operate smoothly in both centuries,” reads the jibe on Apple’s Boot Camp download page.“Windows running on a Mac is like Windows running on a PC. That means it’ll be subject to the same attacks that plague the Windows world.”

The rivalry, it seems, is still going strong.

In the 1970s, Apple commanded a powerful share of the budding personal computer market. But in the 1980s, Microsoft’s decision to license its DOS operating system to IBM, and later, to a slew of IBM clones, propelled Microsoft to the top position in the sofware market and left Apple playing second-fiddle.

Today, Apple’s share of the PC market stands at a meagre 2 to 4 per cent. And that is in spite of the brand cachet gained from the wild success of the iPod, the personal music player that led the company to record revenues and profits last year.

Some Macintosh fans insist that Apple’s reluctant embrace of Windows could help close the gap.

Windows users, their reasoning goes, have always harboured a secret attraction to shiny Apple laptops and desktop computers. Now those itching to make the switch can finally do so without giving up the ability to run the occasional Windows-only programme.

“This is HUGE!!” writes one commentator on Think Secret, a website devloted to Apple news. “You can now purchase a Mac for home use, but still boot up to [Windows] XP to do work. The risk associated with switching to Mac was just eliminated.”

Analysts agree that Apple’s move could open the door to new Mac converts. But they caution that Apple may not see the stampede of new users that some boosters expect.

“We would not expect any meaningful impact on Mac sales or earnings in the near or intermediate term,” says Rick Sherlund at Goldman Sachs.

Others are more optimistic. Robert Semple at Credit Suisse First Boston says that Apple may have opened up a back door into the elusive business market - a segment that accounts for a huge portion of overall PC sales.

”Although Apple software is unlikely to ever unseat Microsoft in corporate environments, owing to the significant existing [Windows-Intel] infrastructure, today’s announcement does significantly increase the likelihood of Apple’s hardware penetrating the corporate environment,” he writes. “Corporate PCs represent two-thirds of worldwide PC shipments, which was generally excluded from most discussions of Apple’s total addressable market.”

Van Baker at Gartner says Apple could benefit from delays to the consumer version of Microsoft’s next-generation Vista operating system, now delayed unti the new year. However, he says the company is unlikely to see a big surge in market share.

“This is not Apple’s big push into the enterprise,” he says. “It’s not a big shock for [rival PC makers] because their focus is the Fortune 500.”

A rush of Mac converts would be a welcome development. Apple has come under pressure to maintain sales growth, which has soared thanks to the phenomental success of its iPod personal music player. Shares in Apple have plunged 29 per cent from their January highs, amid concerns that the iPod’s so-called “halo effect” might not be leading to improved market share in the company’s core computer business.

David Bailey at Goldman Sachs points out that Apple’s share of the computer market remained relatively flat last quarter in spite of a 207 per cent increase in iPod sales and a dramatic pickup in customer traffic at Apple’s retail stores.

More than two decades after the Apple-Microsoft rivalry began, Apple’s products are more appealing to the mainstream than ever. But whether that will translate to the kinds of market share gains it needs to maintain its bumper sales growth remains to be seen.

Source: www.ft.com

Netflix sues Blockbuster!

At first, it sounds like the neighborhood's first pizzeria suing the Chinese takeout joint for making deliveries.

But take a closer look at the Netflix (nasdaq: NFLX - news - people ) lawsuit against Blockbuster (nyse: BBI - news - people ), and some of the details might seem, well, not quite kosher.

Led by Chairman and Chief Executive Reed Hastings, Netflix took e-commerce to a whole new level. Before the current era of digital entertainment and downloads, the company defied brick-and-mortar business models with its online DVD subscription service.

One "old economy" firm was not so thrilled at the innovation: Blockbuster. According to The Associated Press, the storefront movie-rental chain lost $588 million last year alone--and expects to continue to shutter locations as more renters seek DVDs online. One secret to Netflix success has been its no-late-fee policy; making its money via paid subscriptions has allowed Hastings' firm to eschew penalties. Renters can return films whenever they wish.

Blockbuster last year followed suit, dropping late-return fees at its storefronts--and potentially sacrificing hundreds of millions of dollars annually. (This was one of the tactics Carl Icahn objected to, sparking his drive to gain power on Blockbuster's board.)

Then Blockbuster discovered the Internet.

After scoffing at CEO's flat-fee scheme, Blockbuster apparently did a 180-degree turn, launching its own online service that allows customers to rent up to three DVDs at once for a monthly charge of $17.99. When a customer returns a DVD, postage-paid, the service automatically sends the next film queued on the user's want list.

The automatic dispatch, the three-disc system and even the $17.99 figure are the same as the Netflix business model, the AP reports.

"Blockbuster has been willfully and deliberately copying Netflix's business methods," Netflix spokesman Steve Swasey was quoted by the AP as saying. As of press time, there had been no reply to an e-mailed request to Blockbuster for comment.

Netflix seeks a court order forcing Blockbuster to alter its Web rental service--or require the latter to pay patent royalties. In light of recent patent-infringement findings--such as the settlement agreed to by BlackBerry maker Research in Motion (nasdaq: RIM - news - people )--that could pile up pretty high for the defendant.

Source: www.forbes.com

Google Romance!

Showing that even a successful company can still have a sense of humor, Google (Nasdaq: GOOG) launched a fake online dating site in the spirit of April Fool's Day. The elaborate Google Romance prank pokes fun at Google's contextual-marketing stronghold and the "I'm Feeling Lucky" option on its flagship search engine.

Then again, as funny as Google Romance may be, in three years or less we'll be talking about Google Romance as the real deal. Google's weekend joke was so effective because many of its search-engine rivals are already major players in online dating. Yahoo! (Nasdaq: YHOO) has Yahoo! Personals, and Ask.com parent IAC/InterActiveCorp (Nasdaq: IACI) also owns Match.com. Online dating is big business. According to comScore Media Matrix, Yahoo! Personals and Match.com are the most active sites, drawing 5.3 million and 3.9 million unique monthly visitors, respectively. Because relationship-seekers are also willing to pay for online introductions, the services help diversify the revenue mix. With 99% of its revenues still coming from advertising, Google would be more stupid than Cupid to forgo a shot at a high-margin niche that would help grow its ever-expanding reach. Even The Knot (Nasdaq: KNOT) -- a profitable wedding resource site that has seen its shares rise by 53% since it was recommended to Rule Breakers subscribers less than three months ago -- decided to reach out earlier into the courting cycle, acquiring online dating sites GreatBoyfriends.com and GreatGirlfriends.com. Google Romance may be funny now, but I'll eat a chalky candy heart if Google doesn't ultimately go in this direction. Maybe it will launch its own site, without the comical User A and User B going on a "contextual" date. Maybe it will tap into its ever-growing stash of cash and acquire a company like eHarmony or True.com. Folks flock to Google in order to search for things, so why not seek out significant others? Either way, Google and online dating can't be too far away from hooking up for real. It would be a match made in dot-com heaven.

Source: www.fool.com

OHare Airport

Near Misses at OHare Airport (Chicago)

Officials are trying to figure out what is causing so many tense moments at one of the nation's busiest airports. In two separate incidents last week at Chicago's O'Hare international airport, pilots have aborted takeoffs at the last minute in order to avoid colliding with another airplane.The Federal Aviation Administration and the National Transportation Safety Board are both planning investigations into the incidents.The F-A-A says the incidents appear to be a result of mistakes made by air traffic officials, but a spokesman there are a variety of reasons for such incidents.

Out of more than 900 thousand flights nationwide last year, there were seven similar incidents reported.There have been four so far this year.

Courtesy: www.wfmz.com

X-Box: A sum of its parts

Nearly 1,700 parts and 250 manufacturers contributed to the making of the Xbox 360, but a few key companies did most of the heavy lifting. The component costs itemized here add up to $300. While Microsoft officials refuse to discuss the number publicly, industry sources say the company is losing $75 on every low-end box and $110 on every high-end box that's produced.

General Manufacturing
Microsoft is spreading risk around by hiring three companies to assemble Xboxes: Flextronics, based in Singapore; Wistron, based in Taiwan; Celestica, based in Toronto (Celestica will begin assembling Xboxes in 2006).

Graphics Processing Unit
ATI, based in Ontario, Canada, designed the chip to Microsoft's specifications. Then the Taiwan Semiconductor Manufacturing Co. manufactured it. The chip's codename is Xenos, and costs Microsoft approximately $100 per box.

Central Processing Unit
Microsoft went with IBM's PowerPC Xenon chip for the 360, rather than an Intel chip, as they did with the original Xbox. The CPU costs Microsoft approximately $100 per box.

DVD Drive
A number of companies supplied DVD drives for the Xbox 360, such as Korean joint venture Hitachi-LG. Each drive costs Microsoft approximately $25.

Hard Drive
The $400 version of the Xbox 360 comes with a detachable 20 gigabyte, 5400 RPM hard drive manufactured by several companies, such as Korea's Samsung. Each drive costs Microsoft approximately $25.

RAM
Each Xbox 360 is supplied with 512 megabytes of GDDR3 RAM, running at 700 megahertz, which is distributed in eight 64 megabyte pieces. The RAM costs Microsoft approximately $50 per machine. Three companies supply the memory: Samsung, based in Korea; Infineon, based in Munich, Germany; and Hynix, based in Korea.

Wireless Chips
Sunnyvale, Calif.-based Marvell is providing the wireless components necessary to use a wireless game controller with the Xbox 360.

Clock Chip
Norristown, Pa.-based ICS and San Jose, Calif.-based Cypress make the Xbox 360's clock chip--a part worth less than a dollar.

Audio Codec Device
Wolfson Microelectronics, based in Edinburgh, Scotland, makes the box's audio device that translates digital sound to analog for your television.

Power Management
Phoenix, Ariz.-based ON Semiconductor provided about 30 devices that distribute electricity around the machine. Each part is worth about ten cents.

Ethernet Chip Broadcom, located in Irvine, Calif., and ICS made the new Xbox's Ethernet chip.

Source: www.forbes.com

XBox 360 unleashed at Zero Hour

When the Xbox burst onto the scene in 2001, gamers were uncertain about its place in the market. With Sony and Nintendo already holding firm footholds in the industry, the bulky black box from Microsoft was entering a battle taking place in a town not big enough for three. Though it had impressive specs and a legendary launch title in Halo: Combat Evolved, many looked at the system and wondered exactly what the PC-oriented company knew about console gaming.
Four years later, it's apparent that Microsoft was merely getting its feet wet in a market that has become one of the most lucrative industries to date. The company has learned from its first foray into gaming, and has applied its experience to its latest creation, the Xbox 360.
The obvious first lesson it recognized is the importance to be first on store shelves. The Xbox was not only handicapped by a non-existent fanbase, but it had the misfortune of being late to the party that Sony dominated. This time around, Microsoft beat its opponents to consumers today, as gamers across North America got their hands on the first next-generation console.
To celebrate the momentous occasion Microsoft held Zero Hour, a gamer-centric event held in Palmdale, California. The launch party took place in a large airplane hangar over a period of 29 hours, beginning Sunday at 7pm. Microsoft invited its consumers to make the trek to Palmdale by way of contests, timely registration, and a stroke of luck. The result was more than three thousand gamers from all over the country converging, with the sole purpose of ushering in this latest milestone in the industry.
Beginning early Monday, Best Buy opened up a makeshift store inside the space, and pre-sold Xbox 360s, games, and accessories. There was little worry about getting a console among gamers, as reps constantly reassured concerned gamers that there would be enough console for everyone.
Even with all the free tattoos, complimentary massages, and stage demonstrations from industry luminaries that Microsoft set up to keep attendees entertained, the most exciting portion of the near 30 hours was the moment that the first gamers--real down-to-Earth gamers--got their hands on the Xbox 360.
At 8pm, San Diego-based rockers Louis XIV, who many may recognize from the anthem to Electronic Arts' SSX on Tour, played a solid 40-minute set on the main stage. Though this was considered one of the main events of Zero Hour, most gamers barely even recognized their performance, as they were lined up to get their Xbox 360s.
Those who pre-bought the systems formed a very lengthy queue that took the shape of a horseshoe, and nearly spanned three-fourths of the hangar's interior. Glazed eyes and yawns indicated that those first in line had been there for a while, eager to be among the first to say they were an Xbox 360 owner.
Though the event took place on the West Coast, Microsoft agreed to let Zero Hour attendees get the console early, and opted for a 9pm launch time to coincide with East Coast midnight madness sales.
At 8:54 (360 seconds before launch), the gates to the hangar opened up, revealing a convoy of three large Best Buy trucks, complete with a police escort. Inside those trucks were nearly 3,000 Xbox 360s, packed to the brim in the trucks' cabs. Music reached a feverish tempo, and the interior lights strobed on and off, sending the crowd into a frenzy.
As the vehicles made their way to the Best Buy store, the energy was electric--this was the moment that the gamers had been waiting for. All those hours yearning to play as Joanna Dark, tear through a lap of the Nurburgring, or play high-definition sports games were merely ticks away from becoming reality.
Best Buy assembled an armada of employees to dispatch and hand over the consoles, and once the rear doors to the trucks opened, things reached fever pitch.
One minute after 9pm, the first consoles were given to Edgar Bounds and Mike Bedwilder from Senatobia, Mississippi. The two Xbox fans drove from their homes to Zero Hour without the luxury of breaks, a 30+ hour journey. A minor miscalculation saw them arrive to the event a full day early, but for the pair it was merely a blip in the road. They were finalists in the Hex 168 contest, which granted them access to the event, but not the complimentary Xbox 360 and passage that grand prize winners received.
"We've only gotten about 10 hours of sleep in the last week," stated Bedwilder, clearly showing the strains of his gaming devotion and insomnia.
"Once we got that e-mail [declaring the two would be admitted], we knew we were going," said Bounds. Their perseverance paid off, as they instantly became the darlings of the night and subjects of mass media attention. The two were so anxious to get their game on, they nearly left the premises before they could bask in their glory.
From then, the throng of gamers made their way through the line, showing their proofs of purchases. Once face-to-face with a register, they were met by a very enthusiastic group of Best Buy employees, who were slapping fives and congratulating the buyers.
The line was pretty much non-existent at 45 minutes past the hour, as the procession went fluidly. Those lucky enough to get a 360 quickly took their new prized possessions back to their houses, eager to experience the console on their own setups.
And just like that, Zero Hour came to a close. Looking back on the festivities, it was clear that Microsoft held true to its claims of making the event about the gamers. Though photo opportunities were rare and celeb sightings were minimal, those who attended--the hardcore gamer from every conceivable demographic--not only appreciated the fact that they were there, but the fact that they had the opportunity to be there, a rare instance in today's starstruck industry.

By Tim Surette -- GameSpot