Tab News - PJ Louis LLC

Canon – No Line of Succession? What Not to Do?

PJLouis — Tue, 31 Jan 2012 01:56:00 GMT

http://online.wsj.com/article/SB10001424052970204652904577192132163888756.html?mod=rss_Technology&utm_source=twitterfeed&utm_medium=twitter

Are they kidding? Am I hearing this correctly, Cannon does not have a standing plan for line of succession? Holy smokes! Yikes!

If you plan on promoting people within, the process is one that takes time. You don’t just simply and suddenly find a suitable group of executives. Companies are supposed to train the next generations of executives over a period of years.

You know what Cannon ought to be afraid of is picking someone based on age. The biggest mistake to make is to select an executive based on him being the oldest in the bunch. If the Japanese actually selected qualified managers based on age, they would be committing a massive error.

How in the world do you not have a succession plan in place? Even most large American companies have something that approximates a succession plan for management teams. I just realized that Canon is a ripe target for a turnaround expert.

Canon should consider hiring outside consultants to assist them.

Apple and Others – Tolerate Labor Abuses in China - Outsourcing Gone Wrong? Blood Money? - COMMENTS- and Mike Daisey

PJLouis — Sat, 28 Jan 2012 02:49:03 GMT

http://www.msnbc.msn.com/id/46143670/ns/business-us_business/#.TyFM7YHsaq0

http://www.thisamericanlife.org/radio-archives/episode/454/mr-daisey-and-the-apple-factory?act=1

http://www.thisamericanlife.org/play_full.php?play=454

Well the truth has finally come out. Apple and others are using Chinese labor to make high quality and high priced iPhones, iPads, tablets, smartphones, etc. and making a ton of money on the cheap labor and unsafe working conditions.

There is nothing wrong with using low cost labor. It is difficult for products companies to keep track of labor abuses. However, that is why companies hire auditors and have their own teams focus on labor safety. This posting started off as a look at Apple. The problem is bigger than Apple. However, because Apple is one of the companies that have become a focus of so-called mainstream media, I will focus on Apple.

Does Apple ever proclaim their manufacturers are ISO 9000 compliant? If so then someone better nail them for lying to the public and the international standards organization ought to give consideration about how corporations throw that designation around. All that aside. Let us focus on the issue.

According to recent articles, Apple has known about these abuses for years. Where are the outraged celebrities and politicians? I certainly hope this is not “an Asian thing”. Or maybe this is about “money”?

I actually think it is about “money”. I like money. I do not begrudge anyone who wants to make anyone; as long as it is done honestly.

I understand that consumers have no way of knowing what manufacturers are used by the various products companies that are selling their products. The average consumer assumes the sellers are doing what they are supposed to be doing, which is to make products that are free of blood.

They use to call these sweatshops in the US. Now that the USA hardly makes anything here it is easy to forget that we would never want our own citizens treated in the way the Chinese workers are treated.

However, if Apple really wants to be a respected brand then it needs to put its foot down and demand its outsourced manufacturers improve worker safety. Unfortunately, because Apple makes so much money, the financial world and the average consumer consider Apple the most respected company on the planet. I no longer think so.

Apple has known about the abuses for the last 4 years. Intel can make a chip without having a factory explode on them leaving injured and dead workers; why can’t Apple? Wall Street obviously has no problems making blood money otherwise they would have been demanding the abuses be stopped.

Remember, Chinese labor working on US railroads in the 19th Century? Cheap labor and a lot of them killed as a result of unsafe labor practices and other horrendous acts.

Apple can force all of its manufacturers to comply with the most rigorous safety practices in the world; if it wanted to. Yes, the company’s profit would be lower or it can simply charge more for their products. Then there could be another issue; very companies can tell the Chinese government what to do in terms of establishing safety requirements. Maybe Apple has no influence? Nah, Apple actually does have the influence it just chooses not to exercise it.

Here is a suggestion to Apple: move the manufacturing to another country that needs employment as much as China does. I am sure Mexico, Germany, Japan, India, Viet Nam, and the United States would not only benefit from having Apple spend billions in those countries but also they would manufacture Apple products safely. However, I cannot say any manufacturer in those countries would do it less expensively than China. So - Apple what will it be? Make money under safe working conditions or make money leaving a trail of bodies along the way?

Check out the discussion running below. Also check out the links above. Mike Daisey, who is not a reporter, has a one-man show running about Apple and Steve Jobs and he discusses the labor abuses he has found. Bear in mind he characterizes himself as a story teller and not a reporter.

People care more about their iPhone than the working conditions in China. A tragedy.

Apple becomes the largest Smartphone Vendor

gdt — Sat, 28 Jan 2012 02:07:22 GMT

According to the latest report from Strategy Analytics, Apple has now overtaken Samsung to become the world’s largest smartphone vendor by volume. Apple achieved 23.9% market share during Q4 2011, narrowly beating out Samsung’s 23.5% share.

RIM’s CEO – A Few Thoughts – He has Already Made One Big Mistake

PJLouis — Fri, 27 Jan 2012 21:20:00 GMT

http://www.wirelessweek.com/News/2012/01/RIM-CEO-Heins-Clarifies-Stance-on-Change-Devices/

http://www.reuters.com/article/2012/01/23/us-rim-idUSTRE80M04920120123?feedType=RSS&feedName=topNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FtopNews+%28News+%2F+US+%2F+Top+News%29

When I first started writing this posting Thorsten Heins had not clarified his statements.

I was like so many, dismayed by Heins comments. However, I had decided to cut him some slack.

On the surface you could have taken Thorsten Heins’ earlier comments as either being disconnected from reality and investors or you can take Heins’ comments as being cautious.

People need to keep in mind that Heins has employees to think of. When a new CEO comes in and says there will be drastic change the first that happens is that employees panic and run for the doors. Of course the company has already lost a lot of very solid employees, which implies there may not be enough of the right kind of talent left to actually propel the company forward.

Bottom line Heins needs to generate a sense of change, a sense of stability, a sense of confidence, and a sense he has everything under control. He has a big job ahead of himself. One tactic Heins could have taken when he stepped out into the spotlight is he could have proclaimed a plan of change, while simultaneously proclaiming how the team will need to stay together to get the job done. That is what he finally sort of did by stating he wants change but nothing seismic. I actually understand what he means. His new comments fall into line with what I initially believed.

As for the company having a lot of cash sitting around. That is a nice cushion to have around but that does not guarantee success. Heins’ predecessors had the same pile of cash and they did everything wrong.

What people need to worry about is that Heins may be pretty much like his predecessors. Folks need to keep in mind that when Heins was hired Balsillie and Lazaridis were firmly in charge. What I am saying is managers procreate versions of themselves; hire and promote people like themselves.

There are a few things Heins can do right now and all at once:

• Stick to whatever plan he has in terms of deploying the BB 10
• Shop the company around to be bought
• Look to acquire someone that can transform the company’s culture and product line
• Get on his hands and knees and beg the applications development community to come in and work with RIM. I suggest he turn the Blackberry operating system in an open platform.
• Develop strategic alliances with other handset and software companies right now.

Why bother going through all of that trouble? The answer is: Heins has to hedge his bets and run through a bunch of parallel paths. It is like throwing a bunch of ideas against the wall to see which will stick. By the way he also has to run the company, hence the need to continue work on BB 10.

In regards to opening up the platform, RIM is not BlackBerry; there are no young cool developers and customers out there that worship the company. The cult of personality of Blackberry existed with guys like me 10 years ago when we were (sort of) young business professionals but now I am not that young audience that products companies target.

Since Heins plans on promoting the BB 10 as key component of his plan to save RIM, I would start looking for a turnaround expert to help with the implementation.

Now here is my real problem with Heins. He has already made his first mistake as CEO. The mistake being: he did not communicate what he really meant. Tiny error? Absolutely not. One of the key things a CEO must do is: communicate with his/her shareholders. He did a pretty poor job of that Day One. Communicating is a critical skill necessary to run a company. If he cannot say what he means, then heaven help the shareholders. RIM needs to hire Heins a better publicist.

I give Heins 15 months, tops. By the end of the 3rd or 4th quarter of his tenure we will all know if he is going to be successful or not.

Why Apple outsources the iPhone - COMMENTS

gdt — Sun, 22 Jan 2012 22:12:41 GMT

It's not just about money ... The original article came from the NYTimes http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?_r=1&ref=technology but there is a good analysis also at businessinsider.com. The real reasons Apple makes iPhones in China, therefore, are as follows: Most of the components of iPhones and iPads — the supply chain — are now manufactured in China, so assembling the phones half-a-world away would create huge logistical challenges. It would also reduce flexibility — the ability to switch easily from one component supplier or manufacturer to another. China's factories are now far bigger and more nimble than those in the United States. They can hire (and fire) tens of thousands of workers practically overnight. Because so many of the workers live on-site, they can also press them into service at a moment's notice. And they can change production practices and speeds extremely rapidly. China now has a far bigger supply of appropriately-qualified engineers than the U.S. does — folks with the technical skills necessary to build complex gadgets but not so credentialed that they cost too much. And, lastly, China's workforce is much hungrier and more frugal than many of their counterparts in the United States.

Reaction to Google's Privacy Changes Hitting the Web

gdt — Thu, 26 Jan 2012 01:16:29 GMT

Google is planning to use content from all there offered services to begin targeting you with Ads. This new Privacy policy change now include private information on Android devices as will as private emails in gmail. Security researcher Matt Blaze offered his own interpretation of Google's announcement on Twitter: "'Be Evil' is a simplified and easier to understand version of 'Don't be Evil.'"

RIM – co-CEOs Leave - Comments

PJLouis — Mon, 23 Jan 2012 05:10:58 GMT

http://www.bloomberg.com/news/2012-01-23/rim-replaces-ceos-as-it-struggles-to-answer-apple.html

RIM’s co-Chief Executive Officers Jim Balsillie and Mike Lazaridis have stepped down. Thorsten Heins, RIM’s chief operating officer who joined RIM four years ago from Siemens AG, will replace the pair in the CEO post effective immediately

According to the RIM board, Balsillie and Lazaridis stepped down on their own and not a response from outside pressure. Total nonsense; it had to be outside pressure or was this the biggest coincidence you could imagine?

Stock is crashing to earth like a meteor. The company has no plans on how to respond to either the Android and iPhone and these two co-CEOs just decide it was time to step down. I wish the RIM board would leave now. The RIM board is just as responsible for this mess as Balsillie and Lazaridis were. Lying about why the two co-CEOs does nothing but protect the feelings of two individuals who have caused thousands of people and I am sure pension funds as well to lose millions in value at a time when regular folks cannot afford to lose a dime. It is insulting.

Now it is time for the board to leave. The board just does not get it; they work for the shareholders.

Solar Cells in Smartphone Screens – Nice!!

PJLouis — Sat, 21 Jan 2012 23:54:44 GMT

http://spectrum.ieee.org/consumer-electronics/portable-devices/solar-cells-in-smartphone-screens/?utm_source=techalert&utm_medium=email&utm_campaign=011912

Using the screen as a charging surface is clever. Thin film technology has certainly come a long way from 10 years ago.

Using solar energy to charge a phone is not new. For those who do a lot of backpacking/camping in the woods there are portable devices that convert solar energy into electricity to charge your cell phone. The neat thing about this technology is that it is built into the screen using state of the art thin-film technology plus capacitor technology plus transistor technology. The screen is the largest real estate on the handset. Makes sense to use the display screen. Very nice.

There is work underway using induction coils to generate an electrical charge, which could then be used to charge a cell phone.

A lot can go wrong between development and commercialization. This is something to keep an eye on.

Skype to be an integrated feature on Microsoft Windows Phone? COMMENTS

gdt — Tue, 17 Jan 2012 01:23:53 GMT

Skype as an integrated feature in a MS Windows phone is actually a feature that gives this phone a one up on the Apple iPhone. I would have thought Google would have done a better job of integrating VoIP in to the Android OS, but to see this from Microsoft - who would have guessed!

Rumors of a RIM sale?

gdt — Wed, 18 Jan 2012 17:21:50 GMT

As you would imagine there are rumors circulating on the web that RIM is shopping around for a buyer. This article has a different twist: But RIM may not be preparing to sell the company in full: on January 4, Barron's quoted an analyst from Jefferies and Co. as saying that RIM had agreed to license its BlackBerry OS to "Samsung, HTC, and possibly others." BlackBerry sales are increasing outside the U.S. - so a good move for Samsung or HTC?

Jerry Yang - RESIGNS From YAHOO !!!

PJLouis — Tue, 17 Jan 2012 23:03:59 GMT

http://money.msn.com/investing/news.aspx?feed=AP&date=20120117&id=14700951

Jerry Yang has resigned form Yahoo. He has also given up his title of Chief Yahoo.

Yang is also stepping down from the boards of China's Alibaba Group and Yahoo Japan. Yahoo is negotiating to sell its stakes in both companies.

Predicting Tablets will replace laptops

gdt — Tue, 10 Jan 2012 22:14:04 GMT

"A full 46% of Americans think tablets will replace laptops in the future, according to a poll of 1,155 American adults." Just think about what this will do the need for more and more bandwidth on wireless networks. With Applications like Facetime, iMessage, Skype, etc. The carriers will continue to see declining voice usage on their networks and through the roof data usage.

LightSquared's LTE interference issues deemed real by nine government agencies.

gdt — Sun, 15 Jan 2012 01:19:49 GMT

Nine agencies making up the National Space-Based Positioning, Navigation and Timing Executive Committee (PNT ExComm) all agreed that the problems are real and any attempts at mitigation are futile. http://www.computerworld.com/s/article/9223447/Federal_body_concludes_LightSquared_can_t_work_with_GPS

AT&T – The Network is Performing Very Well – But Still Facing an Uphill Battle

PJLouis — Mon, 09 Jan 2012 19:05:01 GMT

http://money.cnn.com/2012/01/09/technology/att_network_gets_better/

According to industry experts, AT&T’s wireless network is outperforming expectations. Better yet it is meeting customer network needs, not necessarily perceptions.

Unfortunately for AT&T, its own customers have been bashing the carrier. The customer dissatisfaction is the result of past sins, genuine concerns from the customers, bad press over the handling of the T-Mobile disaster.

Bottom line, we are seeing an example of where perception is reality. Despite the fact the network is genuinely performing better, well in fact, the customer does not think so.

I have been impressed with AT&T’s network performance. I have not done any formal network testing. I have been using AT&T cell phones and have been impressed with the speed and level of interactivity.

The challenge for any retail operation is trying to convince the customer they are wrong without sending them into a rage. Remember never ever tell the customer they are wrong; just shut your mouth and make the customer happy. Customers don’t need a whole lot to set them off. Customers expect premium service and rightfully so, service providers make their money off of customers.

AT&T needs to spend the money on a PR campaign convincing customers the company has improved. Just remember, AT&T is not trying to convince the customers they are wrong. Customers don’t like being told they are wrong they just want the provider to serve without the provider complaining about them.

Of course fearing the customer is correct. My advice to AT&T is to determine when the survey was done versus when the network improvements started taking hold. This could be a simple matter of timing. Customers have long memories and simply cannot just forget service problems.

So what we know is this: AT&T’s network is performing well, excellently in fact. Customers are bashing AT&T over quality.

Stankey has it right; the company has made progress but its work is not over. Just never say the customer is wrong.

Being a service provider is not easy.

Groupon – Sinking Faster and Faster - May Become its Own Low Cost Deal?

PJLouis — Sun, 08 Jan 2012 04:41:58 GMT

http://www.bloomberg.com/news/2012-01-04/groupon-s-drop-reflects-daily-deal-risks.html

At the rate Groupon’s stock price is crashing and more information about the pitfalls of its business model become public, Groupon will soon become its own daily deal. Someone will end up buying it up CHEAP as a going concern.

The problem with buying a company like Groupon is that it’s only value lie in the short term contracts and the non-sticky customers.

To merchants, the brand name is not key to their survival. Despite the bad economy there are emerging local daily deal businesses popping up. Competition is coming on strong.

Have you heard of Restaurant.com or OpenTable? Restaurant.com vouchers do not expire. OpenTable has pretty good deals with 30% discounts.

I do not intend this to be an ad for other companies. The point I am making is that there are plenty of solid daily deal sites. Further there are more local and regional daily deal sites opening up all the time.

Groupon’s costs are going to continue to escalate. What will this company be worth next year?

The company would have been in better shape if the early investors and Groupon’s CEO had not cashed out early – makes you wonder what they have not told the investment community.

Tech bloggers seem to like the new Microsoft Windows Phone

gdt — Mon, 09 Jan 2012 18:23:57 GMT

The tech blogger community seems to be giving generally positive reviews of the New Microsoft Phone from Nokia. It will be interesting to see if the consumer thinks the same thing. 1. Windows Phone Has A Totally Unique UI 2. Originality Means Fewer Forays Into The Patent Wars 3. Uniformity Across All Devices and Carriers 4. Zune Is Baked Right Into the Operating System 5. Xbox Live Gaming Support

Clearwire – Candidate for Bankruptcy? A Couple of More Thoughts and a New Comment About T-Mobile

PJLouis — Mon, 21 Nov 2011 23:54:39 GMT

http://online.wsj.com/article/SB10001424052970203611404577046304160608704.html?mod=technology_newsreel

Ouch! Clearwire’s future appears to be cloudy. I was a big supporter of Clearwire’s efforts. I still like the company. However, the company appears to be facing tough times ahead.

Regardless of the company’s business plan and objectives, Clearwire does not appear to have the cash to last. Clearwire needs additional capital, which it cannot raise without help from the outside. The company does not have the resources to raise the money from within its own revenue stream. It can go back to its owners and ask for a cash infusion but to what end? None of this is good news. However, what is good news is that the company has a 30-day breathing spell. Do not get me wrong this is still a problem but in a distress situation you are grateful for any time you can get.

I am not sure what new service deals will do for Clearwire because those deals need to translate into instant cash.

Should Sprint use its own cash to save Clearwire? The answer is that this depends on Sprint’s strategy. Sprint could try to pick up Clearwire for a song. However, that is not fair to current shareholders of Clearwire. Now, if Sprint decides not to help at this moment, Clearwire could be picked up out of bankruptcy real cheap by Sprint. Of course the overall emotional and operational damage a bankruptcy can cause to a company may render Clearwire barely functional. In the event of a bankruptcy a bankruptcy judge could keep Sprint from even putting in a bid for Clearwire.

An alternative for a bankruptcy is Sprint buying Cleawire. However, this does not mean that Sprint gets Clearwire cheap. Here are the challenges facing Clearwire and all of its shareholders. All of the shareholders are entitled to a fair return. However, we cannot assume the shareholders have the cash or even the support of their respective stockholders to put a bid in for Clearwire.

Clearwire’s plan to be a wholesaler for the wireless industry has potential. Can Clearwire’s plan help save the company?

Does Sprint have the cash to even consider a purchase of Clearwire? Would Sprint even be able to raise the cash for such a purchase? What about a Sprint-Comcast alliance to purchase Clearwire at fair value without having to bankrupt Cleawire?

At this time I have no clear idea what Clearwire should do. I need to ponder this entire situation. There is a lot to consider. Bankruptcy solves a lot of problems but it also leaves equity holders high and dry.

With AT&T in a pitched battle with the FCC and the DoJ wouldn't Deutsche Telekom welcome an offer from Sprint?

Yahoo’s New CEO – Talks the Talk - But can he Walk the Talk? - Comments

PJLouis — Sat, 07 Jan 2012 22:21:43 GMT

http://online.wsj.com/article/SB10001424052970204331304577143151032301964.html?mod=WSJ_Tech_LEFTTopNews

Yahoo’s new CEO, Scott Thompson has had his company meeting and told all of Yahoo’s employees that Yahoo needs to be “world class” and that Yahoo will fund innovation.

He did not say anything that was not expected.

The question now is will he be able to move the company in a direction that is profitable. The challenges Mr. Thompson faces are massive:
• A board that is accountable for the mess the company is in and still will not take responsibility for the mess the company is in.
• A board that has a founder who I believe is conflicted with Yahoo. Read past postings.
• A board that has a history of making very bad decisions

If Thompson disagrees with Jerry Yang, I am fairly certain Yang wins and Thompson loses the argument. Same thing goes for any disagreement between Thompson and Yahoo Chairman Roy Bostock.

The fact that Thompson is a technologist without turnaround experience is just icing on the cake. In other words, it makes you wonder why Bostock and Yang even selected him. I guess they wanted someone who would do what he is told to do.

The fact that Thompson is on the board is meaningless. The true test is whether or not Roy Bostock and Jerry Yang listen to him and fully embrace Thompson’s ideas and opinions. My best guess is no to both.

The reality is Thompson will likely not be able to achieve anything positive with the existing board.

This company is beginning to look a lot like RIM. The company is not only an example of management failure but also an example of disastrous corporate governance.

Groupon’s Troubles Just Keep Piling On – Maybe Groupon is Nothing More than a Giant Penny Saver

PJLouis — Thu, 18 Aug 2011 16:58:28 GMT

http://www.businessinsider.com/groupon-low-on-cash-2011-8

Groupon is suffering from three problems:

1. Negative Working Capital
2. Competition
3. Low Barrier to Market Entry

The company’s available cash is not as great as one may think. A massive portion of what it collects on the sale of discount coupons has to be eventually paid out to merchants.

Competition is eating away at Groupon’s take of each voucher/coupon. Instead of taking 50% of each voucher, Groupon will be taking less as time goes by. This means it will be generating even less revenue for itself.

The barrier to entry is low. There are a ton of competitors now. Competition is springing up everyday. Even worse there are national, international, and local competitors of Groupon.

Groupon’s business is a cash flow business, where the value in the company is not in the assets but in the actual cash flowing through the company and the float it can sustain. Groupon’s business model works it just is a low margin business.

I do not blame the early investors in the company. Those investors had a right to take their cash early because I am sure they understood the company is really not an Internet company but a giant penny saver. By the way there is nothing wrong with penny savers, they are low margin businesses that require a lot of hard work

Groupon is looking at eroding revenue because of growing competition. Even if Groupon continues to grow in the number of merchants it is working with, the reality is that the merchants are not sticky customers. The merchants can go to any coupon company that is willing to give the merchants a bigger piece of the action.

The discount coupon business is and always will be a low margin business. Is there value in Groupon? I think there is value in the discount coupon business; however, my margin needs are not as high as most investors.

Corporate Governance – RIM a Travesty of Corporate Governance – Happy New Year RIM Shareholders-UPDATE

PJLouis — Sun, 01 Jan 2012 19:17:48 GMT

http://online.wsj.com/article/SB10001424052970203686204577116751785671184.html?KEYWORDS=rim

Finally, after a disastrous two years (going on 3 years) under the helm of two dysfunctional co-CEOs and co-chairmen, the Wall Street analysts are finally asking questions of the board of directors.

Where is the board of directors? I have been asking that same question.

Corporate governance is more than just a once a month meeting to hang out with old friends. Corporate governance is about accountability in the company; accountability to shareholders (especially).

Boards of directors do not work for the company, they work for the shareholders. Yes, technically the boards also report to the board chairmen but in reality they all work for the shareholders. When the C-Suite and board room forgets who they really work for then it is time to remove all of the C-level executives and members of the board.

This is no joke. Do I have to remind everyone of Enron and WorldCom? Do I have to remind everyone of the tens of thousands of people who lost everything they had because of Ken Lay and Bernie Ebbers?

We are looking at billions of dollars of value lost by a pack of incompetent boobs who have wasted the last two plus years, not year as suggested by the Wall Street Journal, doing absolutely everything two equally incompetent and disastrous co-CEOs and Chairmen have wanted without question or pushback. If the board has been fighting Jim Balsillie and Mike Lazaridis it has not been obvious.

RIM’s board of directors includes some highly credentialed people. Where are they?

The lack of action on the part of the board of directors warrants an investigation into the company’s operation now. Why in the world would a board of directors allow such behavior to continue unless it is completely incompetent? An investigation would place the entire company under a magnifying glass and the finally shareholders will have visibility into how the company actually makes decisions.

The company boasts having of stature and credibility on its board of directors. Some of those folks are:
• John Richardson
• Barbara Stymiest
• Roger Martin

Stymiest was the former chief executive of the Toronto Stock Exchange. John Richardson is a retired insurance executive. Roger Martin is a university dean and authored an acclaimed book on corporate governance.

Do you think that people of such stature would have more on the ball? Do you think people of such credibility would know that they look like a joke? Do you think people of such experience would actually know what their jobs were and what they are accountable for?

Shareholders have lost billions in value. RIM can try blaming the iPhone and the Android but frankly that would be a disservice to all of the hardworking staff level employees of RIM. The reality is that RIM’s leadership has failed to act and has done so for nearly 3 years.

For some unfathomable reason, the shareholders have allowed the board of directors and co-CEOs Jim Balsillie and Mike Lazaridis to continue in their roles. It is time for all of them to leave now.

Happy New Year RIM shareholders – you are starting off the New Year with a bang. Happy New Year RIM board, Jim Balsillie, and Mike Lazaridis you have pulled off the greatest con since Enron and WorldCom. You have everyone convinced you are looking out for their life savings even while the stock crashes.

As of January 7, 2012, the rumor is that Stymiest will get the top spot.

Yahoo Names New CEO

PJLouis — Wed, 04 Jan 2012 15:00:53 GMT

http://www.msnbc.msn.com/id/45869902/ns/business-us_business/t/yahoo-names-paypal-exec-ceo/

The AP has reported that Yahoo Inc. has named Scott Thompson, president of eBay Inc.'s PayPal division, as its new CEO.

Interesting choice.

Let me think this one over.

Rumors that Microsoft will buy Nokia's Smartphone Division

gdt — Fri, 06 Jan 2012 13:44:12 GMT

So, if the rumors turn out to be true ... a good move for Nokia? I'm not too sure, if all they have left is the dumb phone product line is this the end of Nokia? How about on the flip side, a good move for Microsoft? Does Microsoft aspire to be like Apple (closed mobile ecosystem) or like Google Android (across multiple vendors).

RIM – Getting a New Chairman? Is It Enough?

PJLouis — Tue, 03 Jan 2012 21:49:53 GMT

http://business.financialpost.com/2012/01/03/rim-leaning-toward-new-chairman-sources/

According to the Financial Post, RIM is finally preparing to shed itself of Messrs. Balsillie and Lazaridis as Co-Chairs of the cratering company.

Supposedly the leading candidate to replace Messrs. Balsillie and Lazaridis is Barbara Stymiest, an independent director on RIM’s board.

I was highly critical of her in a recent posting of mine. Maybe she was fighting for the sharedolders after all.

Will a change occur? I hope so.

However, changing leaders cannot be the only change.

The company needs to hire experienced turnaround experts.

What many folks do not realize that incompetent leadership has a way of hurting innovation and employees. Bad leadership has a tendency to stifle employees. No one really knows how dysfunctional the entire company has become from an operations perspective. New product alone will not be enough.

A lesson RIM could learn from HP / Palm.

gdt — Mon, 02 Jan 2012 20:26:12 GMT

http://www.nytimes.com/2012/01/02/technology/hewlett-packards-touchpad-was-built-on-flawed-software-some-say.html?_r=1&ref=technology Good article at the NYtimes about the events leading up to HP pulling the plug on WebOS. Lack of focus and ever changing API for developers kept them away. Without a developer community little hope of created a new mobile product.

Slide-to-Unlock: A Patent Worth Fighting Over?

PJLouis — Tue, 20 Dec 2011 20:30:29 GMT

http://money.msn.com/top-stocks/post.aspx?post=6c178915-af3b-4c20-8102-3dec14ae06e6

In a word: YES.

This has to be one of the cleverest patents I have seen in a long time.

In my personal opinion it is a take on the classic mechanical slide-to-unlock mechanism you see on everything from boxes to laptop computers. A clever take on that mechanical feature.

This is going to be one heck of a fight.

This patent is definitely worth fighting over.

By the way if the feature is conceptually similar to a mechnical lock slide is it still patentable?

Apple’s iPhone, iPad account for 90 percent of mobile purchases – a few thoughts

PJLouis — Thu, 29 Dec 2011 05:14:21 GMT

http://www.businessinsider.com/iphone-ipad-mobile-retail-sales-2011-12

According to a study by RichRelevance, a retail marketing firm that specializes in online transactions, iPad and iPhone shoppers account for 90% of all mobile-based purchases. Furthermore, iPad and iPhone users spend 19% more per order than Android users.

I have not read the study in detail. However, I will be the first to admit that I am impressed. Given the growth of the smartphone and tablet market, I will say that the mobile commerce sector will grow. As for Apple, the company must be ecstatic.

What these particular press releases have not articulated are the demographics of the iPad and iPhone user. This is important to understanding how the mobile commerce sector will grow.

I think the information points made are relevant in the light of the consumer marketplace. There are three types of retail consumers:

• Brick-n-mortar
• Landline online
• Wireless online

I am just guessing now but more than likely these groups are largely segregated by age, profession, blah, blah, blah, etc. In other words, demographics.

Let us be perfectly blunt the majority of older folks like to shop in a physical store front. Then again, a lot of teens love shopping over their cell phone. If you take a look at the extreme ends of the age bracket you will see differences in spending habits. That is demographic analysis 101.

What is interesting about the data points in the press release is that it shows a definite shift in mobile commerce. When I first wrote my book on mobile commerce, about `12 years ago, the M-Commerce market was brand new. I had stated the market was growing but I had also stated that there were definite issues regarding online purchasing. Among those issues being the need for a customer to scream bloody murder at a salesperson when things go wrong. However, I did recognize the benefits of the Internet. Frankly, I do not think anything I said in the book was incorrect and even still applies today. FYI – I got blasted by Internet entrepreneurs of the time. The book was entitled “M-Commerce Crash Course”. My plug for a book no longer in circulation.

Online purchasing will continue to grow. However, store-fronts will never disappear. In the late 1990s, there were Internet moguls claiming the end of the brick-n-mortar store stating that we will be seeing empty stores lining the streets all across America. I bet you those bankrupt Internet moguls realize just how important commercial real estate is nowadays. Think current Great Recession and the real estate market.

I have always been a critic of Apple, I have never been a fan of worshipping equipment vendors. However, I will give Apple credit for being the best technology marketing company on the planet. A few years ago I had stated that I believed Apple’s true agenda was to sell content, manage content, and distribute content. I got hammered by Apple investors and lovers. However, I do not see where I have been wrong. The iPhone and iPad have been a means for Apple to insert itself into the value chain of commerce. Apple gets a chunk of change for many of the transactions that take place, especially through apps, music, and video. In fact the company has made billions off of downloads. In other words; BRILLIANT MARKETING and SALES Work.

In October 2011, the company reported 4th Quarter results. For the 2011 fiscal year, Apple reported revenue of $108.25 billion and net profit of $25.92 billion, or $27.68 per diluted share, compared to revenue of $65.23 billion and a net profit of $14.01 billion, or $15.15 per diluted share, in fiscal 2010.

Apple’s stats are impressive. Thanks to the company’s focus on content, as opposed to devices, the mobile commerce business has taken off. Yes, I know people will say that Apple is a device company, I disagree. Steve Jobs made a device to enable the content business. Think of all of the things Jobs did in the content area (e.g., Pixar) and you might see what I see: he made all of those devices to facilitate his vision of content.

Without content what is the point of a smartphone?

The mobile commerce marketplace is now at an interesting inflection point. The business use to be just about voice. By the way I still think voice is the baseline service for wireless. The business then transitioned into wireless email, then into music downloads, then video downloads, then streaming, then online transactions. Now what is left? The answer is: wireless will be entering that phase where companies are seeking to ways in which wireless can replace and supplement their existing business processes. The mobile marketplace is now at a point where the industry is actively looking at ways for wireless to improve the way existing activities are performed. Wireless has embedded itself in our lives. It used to be we had to think of things for wireless to do just to make sure wireless technology would gain market traction. That has all changed. I believe the wireless industry can thank Apple and Steve Jobs for promoting/pushing an environment that industry folks like myself had only dreamed of.

Groupon – Is it Cash Poor? Heading for a total Collapse? YES

PJLouis — Wed, 21 Dec 2011 04:25:26 GMT

I saw this blog posting that just posed a question: Is Groupon cash poor? When you run through the analysis on the posting you get the strong impression the company has serious cash issues.

http://www.nbcchicago.com/blogs/inc-well/groupon-betabeat-cash-poor-data-center-135940573.html

Read this person’s blog.

By the way in my opinion unless the company makes some drastic changes, Groupon will be heading for "bankruptcy". Rule One for running a business you need to make more money than you are spending.

AT&T gets the OK to buy Qualcomm 700 Mhz Spectrum

gdt — Sat, 24 Dec 2011 01:39:46 GMT

AT&T got permission from the U.S. Federal Communications Commission (FCC) to buy the licenses to use this 700MHz spectrum from Qualcomm, giving AT&T an advantage it was looking for in its failed deal to buy T-Mobile: the ability to compete against Verizon with the hot new 4G LTE wireless services.

Deutsche Telekom – I have a Plan B for your T-Mobile Problem - It Involves Sprint

PJLouis — Wed, 21 Dec 2011 00:24:09 GMT

http://www.nytimes.com/2011/12/21/technology/few-options-for-a-lagging-t-mobile.html

“Dear Mr. Obermann,

I have a few suggestions on how to salvage your blown AT&T/T-Mobile Deal.

Bear in mind that AT&T had a few things going against it. AT&T had every intention of letting go of staff right after the deal closed; no one actually believed the company would keep multiple people doing the same job when that was not cost effective. No one believed AT&T was really concerned about the rural and underserved markets because all you had to do was look at its track record. AT&T was not convincing in any of its arguments.

There is a way of salvaging this mess. Despite what analysts are saying about the value of T-Mobile being minimal because of its lack of spectrum, the carrier has value to Sprint and Leap. I completely disagree with those who state that Sprint would be facing the same hurdles and challenges as AT&T. Sprint will be facing the same questions but the FCC is more likely to believe the nation’s Number 3 carrier that it is concerned about the rural and underserved markets when it has a long track of serving those markets even when Wall Street was advising Sprint to walk away from the rural and underserved markets. Leap started off by serving the underse4rved and unserved markets and still is.

DT should sell T-Mobile in pieces that is sell off spectrum and associated network assets to Sprint and Leap. Sprint and Leap can use the spectrum to bolster itself in existing markets and might be able to use the spectrum for new markets. Now will all of T-Mobile’s spectrum be in ideal Sprint and Leap locations? No. But guess what you have no choice but to think out of the box and prepare T-Mobile for a sale of this nature.

I need to give this more thought. More on this later.”

BGR: NTSB recommends all states ban use of cell phones, hands-free devices while driving

Vi__Di — Wed, 14 Dec 2011 00:38:58 GMT

The National Transportation Safety Board (NTSB) voted on Tuesday to recommend that all states ban the use of using cell phones while driving, whether for talking or texting. It is also recommending that states ban hands-free devices, which are typically used as a safety measure among those who do place phone calls while driving. “No call, no text, no update is worth a human life,” NTSB chairman Deborah Hersan said. “This is a difficult recommendation, but it’s the right recommendation and it’s time.” States are not required to follow the NTSB’s recommendation, The New York Times said, noting that state regulators can individually choose to implement a law or ignore the recommendation altogether.