Earlier this month, the U.S. Department of Justice, a number of U.S. states, and authorities in several other countries announced that they were filing lawsuits against Apple and six book publishers, alleging anticompetitive behavior in shifting to an Apple-backed agency model in which publishers set retail pricing and retailers such as Apple receive a 30% commission on the sales price.
Rather than settling the case as several of the publishers have opted to do, Apple has stood firm in its stance that the move did not represent collusion and price fixing but instead served as a way to give publishers control over pricing and break up Amazon's near-monopoly in the e-book market.
Former Wall Street Journal publisher and Press+ founder Gordon Crovitz published a column over the weekend outlining how Apple's plan for a 30% commission on publishers' sales is merely its standard business practice, not any sort of collusion to fix prices in the market.'I don't think you understand. We can't treat newspapers or magazines any differently than we treat FarmVille."
With those words, senior Apple executive Eddy Cue stuck to his take-it-or-leave-it business model of a 30% revenue share payable for transactions through the iTunes service. Despite my arguments to Mr. Cue in Apple's Cupertino, Calif., offices last year on behalf of news publishers seeking different terms, to him there was no difference between a newspaper and an online game.
It was a sobering reminder that traditional media brands have no preferred place in the new digital world. It also should be the defense's Exhibit A in the Justice Department's antitrust case against Apple and book publishers: The 30% revenue-share model is Apple's standard practice, not, as alleged by the government, the product of a conspiracy.Crovitz goes on to outline how the U.S. government's case against Apple and the publishers is misguided, with the agency model having been validated in numerous other industries by federal courts. And with the model looking exactly like that used for apps and other iTunes Store content, it suggests that Apple is not trying to accomplish anything special to gain control of the e-book market.
In fact, Crovitz notes that the e-book market has become significantly healthier since Apple's agency model was adopted by the major publishers.Over the past couple of years, thanks to the agency model, the Kindle's market share has fallen to 60% [from 90% previously] thanks to competition from iPads and Barnes & Noble Nooks, and there is more variation in consumer prices, typically ranging from $5.95 to $14.95.
Pricing flexibility for publishers is necessary to allow innovation. Why shouldn't some e-books cost 99 cents and others that come with video and hardcover editions be $49.95? Why not give people the option to pay 10% more to access an e-book on all e-readers? Consumers should decide, not Amazon or the Antitrust Division.With settlements already looking at unwinding the agency model to allow Amazon to once again begin controlling the e-book market by leveraging its consistent $9.99 pricing to drive competitors out of business, investors have become increasingly skittish about Barnes & Noble and other retailers trying to stake out their positions in the market. Consequently, there are real fears among authors, publishers, and retailers that the federal government's efforts are working quickly to restore an Amazon monopoly capable of bringing down its competitors.
Update: As noted by Chris Martucci and others, Crovitz fails to address the issue of the "most favored nation" clauses included in Apple's contracts with the publishers. These clauses prohibited the publishers from offering their content to any other retailer at lower prices than they offered through Apple. When combined with the apparent coordination among the publishers to break Amazon's near monopoly by shifting to the agency model, a case for read more..
Friday 25 May 2012
Book Publishers-News Publishers-Business Model-Agency Model-Collusion
Wednesday 23 May 2012
Traffic Jams-Open Garden-Techcrunch-Rainstorms-Sunglass
It has been a wild week so far at this year's TechCrunch Disrupt in New York City. Rainstorms and traffic jams couldn't stop nearly 2,000 people from making it to our big weekend hackathon, and our last two days of interviews, panels and startup presentations over at Pier 94 in Hell's Kitchen.Tomorrow is going to be the grand finale. read more..
Annular Solar Eclipse-Front Row-Retinas
A front row seat to Sunday's solar eclipse, minus the whole burnt retinas thing.
Annular Solar Eclipse May 20 2012
Still pictures will be available at http://www.corypoole.com/ 700 pictures through a Coronado Solar Max 60 Double Stack telescope were used to make this video... read more..
Lower Urinary Tract Symptoms-Prostate Cancer-Healthday News-Gene Variants
TUESDAY, May 22 (HealthDay News) -- Certain gene variants linked to prostate cancer may make men more susceptible to lower urinary tract symptoms, according to a new study. On the other hand, a different gene variant might protect against those symptoms, the study found. read more..
Kanex Sydnee-Recharge-Ipads
The Sydnee isn't inexpensive, but if you've got a few iPads and other iOS devices, it offers the convenience of full-speed charging of up to four iPads from a single wall outlet. However, if any of your iPads are protected by bulky cases, the Sydnee's design means those iPads have to share a single shelf, as the charger's slide-in slots can't accommodate bulkier cases. read more..
Sunday 20 May 2012
Effective Tax Rate-Corporate Tax-Subsidiaries
In the latest installment of its "iEconomy" series, The New York Times takes a look at how Apple minimizes its corporate tax burden, taking advantage of a number of legal maneuvers and loopholes around the world. Apple's strategies are of course fully legal and used by many other corporations, but with a spotlight on Apple as it has rapidly risen to become the world's most valuable publicly-traded company with record-setting profits, it has obviously attracted much attention about how it handles its money.Apple, for instance, was among the first tech companies to designate overseas salespeople in high-tax countries in a manner that allowed them to sell on behalf of low-tax subsidiaries on other continents, sidestepping income taxes, according to former executives. Apple was a pioneer of an accounting technique known as the “Double Irish With a Dutch Sandwich,” which reduces taxes by routing profits through Irish subsidiaries and the Netherlands and then to the Caribbean. Today, that tactic is used by hundreds of other corporations — some of which directly imitated Apple’s methods, say accountants at those companies.Among the tactics used by Apple:
- Setting up subsidiaries in low-tax locations such as Nevada, Ireland, Netherlands, Luxembourg, and the British Virgin Islands, routing as much revenue as possible through these locations. By routing much of its U.S. revenue through its Braeburn Capital subsidiary in tax-free Reno, Nevada, Apple is able to avoid California's corporate tax rate of 8.84%, while also reducing its tax burden on money earned in other states.
- Apple's iTunes S.à r.l. subsidiary in Luxembourg consists mainly of a mailbox and a few dozen employees, but records $1 billion per year in revenue as the entity responsible for all iTunes Store transactions throughout Europe, Africa, and the Middle East. With the iTunes Store offering strictly downloadable goods, Apple is able to take advantage of favorable tax treatment available in Luxembourg as part of the country's efforts to attract businesses.
- Apple has substantial operations in Ireland, but the report notes that one of the main benefits of locating there is that Apple is able to internally transfer its patent royalty earnings to a subsidiary there, with the money being subjected to a 12.5% tax rate rather than the 35% tax rate found in the United States. More than one-third of Apple's worldwide revenue is booked through its Irish subsidiaries.
- Apple records 70% of its revenue overseas, even though much of the product value would normally be considered to derive from their design, which occurs in the United States.
Overall, Apple paid $3.3 billion in corporate taxes in 2011 on earnings of $34.2 billion in profits, an effective tax rate of 9.8%, which is considered low by corporate standards. But with the company's tactics relying on a complex and disjointed system of tax laws throughout the world, it is difficult for the United States to single-handedly require Apple to book more of its revenue in its home country, which currently has the highest corporate tax rates in the world when federal and average state rates are included.
Apple has provided an official response to The New York Times, highlighting its role in job creation in the United States, the tax payments it does make, and its charitable giving. The company also notes that its business practices are in full compliance with all laws and accounting rules.
Update: As noted by Forbes, The New York Times is reporting an incorrect calculation of Apple's effective tax rate for 2011 of 9.8%, simply reusing numbers released several weeks earlier by the Greenlining Institute. Forbes points out that Apple's $3.3 billion in taxes paid during 2011 come from its quarterly estimated tax payments made during the year, but that federal tax guidelines instruct taxpayers to base their calculations on the previous year's earnings.
Co read more..
Saturday 19 May 2012
Private Space Exploration Company-The International Space Station-Juggernaut Tencent
China's Internet juggernaut Tencent announced today that it would undergo a restructuring of its business units into six groups. Ren Yuxin was also named as the new chief operating officer and will head up the media and social-networking groups.The six groups include: read more..
Real Tech Alert: Elon Musk’s SpaceX Falcon 9 Ready For Takeoff To International Space Station
SpaceX, the private space exploration company founded by PalPal and Tesla Motors co-founder Elon Musk, is ready to boldly go where no private company has legitimately attempted to go before: The International Space Station. (Live video of the rocket at Cape Canaveral in Florida is embedded above.) read more..
Super Slow Motion
Does popcorn popping look even tastier in slow motion? mmmmmm…
Popping Popcorn in super Slow Motion - The Slow Mo Guys
Follow on Twitter - http://twitter.com/#!/GavinFree In this ridiculously requested video, Gav and Dan show you what popcorn looks like when it... pops. Keep ... read more..
Alternate Ios-Music Player-Apps
While the Music app on your iPhone, iPad, or iPod touch might be sufficient for you, there are plenty of other apps you can use to listen to music on your iOS device. Some offer unique ways of organizing and listening to music, and others focus on providing better sound. Here's a look at three apps that you can use to listen differently to music on iOS. read more..
Tuesday 15 May 2012
Renewable Energy-Data Centers-Greenpeace-Apple
Activist group Greenpeace today issued a new report entitled How Clean is Your Cloud?, targeting major Internet companies including Apple, Amazon, and Microsoft over their heavy use of coal-derived power for their massive data centers.Given the energy-intensive nature of maintaining the cloud, access to significant amounts of electricity is a key factor in decisions about where to build these data centers. Since electricity plays a critical role in the cost structure of companies that use the cloud, there have been dramatic strides made in improving the energy efficiency design of the facilities and the thousands of computers that go inside. However, despite significant improvements in efficiency, the exponential growth in cloud computing far outstrips these energy savings. Companies must look not only at how efficiently they are consuming electricity, but also the sources of electricity that they are choosing.The study covers 14 Internet companies, but singles out Apple, Amazon, and Microsoft as the biggest offenders. According to Greenpeace's data, Apple is the only one of the 14 companies to derive more than half of its data center power (55%) from coal. Apple also ranks third in the share of its power needs coming from nuclear sources.
Greenpeace acknowledges Apple's work to build a 20-megawatt solar farm and 5-megawatt fuel cell facility at its new data center in Maiden, North Carolina, but downplays their significance by claiming that the facilities will cover only 10% of the site's power needs. Greenpeace specifically takes Apple to task for its decision to locate its data center in North Carolina, which reportedly maintains one of the dirtiest power grids in the country. In particular, Duke Energy is continuing to invest in coal and nuclear power options while investing "very little" in renewable energy. A similar situation exists in Prineville, Oregon, where Apple has announced plans for another data center.To deliver iCloud services, Apple has dramatically expanded its data center infrastructure. It has invested at least $1bn in an “iDataCenter” in North Carolina, one of the world’s largest data centers, and just announced another facility to be built in Prineville, Oregon. Unfortunately, both of these investments are powered by utilities that rely mostly on coal power. Given the lack of transparency, siting policy or a clear commitment to power the iCloud with renewable energy, Apple is finding itself behind other companies such as Facebook and Google who are angling to control a bigger piece of the cloud.Apple maintains a significant environmental section of its website, including disclosures on its Maiden data center, which the company believes is the only data center of its size to achieve a LEED Platinum rating from the U.S. Green Building Council. But while Greenpeace gives Apple some credit for its steps, the organization continues to give Apple poor marks for a lack of complete transparency about its data center power demands and publicly-available policies regarding the energy considerations for its projects.
While Apple, Amazon, and Microsoft take the brunt of Greenpeace's criticism, Yahoo and Google receive high marks for their policies prioritizing renewable energy in their projects and for promoting policies to increase investment in renewable energy. Facebook also receives high marks for its recent commitment to renewable energy, including its latest data center in Sweden that can be powered with 100% renewable energy.
Update: In a statement issued to The New York Times, Apple discloses for the first time that the current data center in Maiden, North Carolina consumes roughly 20 megawatts of power, meaning that the 25 megawatts of power planned for the solar farm and fuel cell facility at that location should be sufficient for at least this phase of the project. Apple's long-term plans include eventually doubling the size of the data center with a second building, and read more..
Underwriters-Common Stock-Facebook
Facebook has filed a new S-1, and it contains more details on the IPO.It will offer underwriters the right to purchase up to an additional 50,612,302 shares of Class A common stock to cover over-allotments. Facebook anticipates that the initial public offering price will be between $34.00 and $38.00 per share. read more..
Food And Drug Administration-Heart Rhythm Problems-Multiple Sclerosis
MONDAY, May 14 (HealthDay News) -- The multiple sclerosis drug Gilenya (fingolimod) should not be given to patients with certain pre-existing or recent heart conditions or stroke, or those taking certain medications to correct heart rhythm problems, says a U.S. Food and Drug Administration safety announcement issued Monday. read more..
FDA Issues Multiple Sclerosis Drug Alert
MONDAY, May 14 (HealthDay News) -- The multiple sclerosis drug Gilenya (fingolimod) should not be given to patients with certain pre-existing or recent heart conditions or stroke, or those taking certain medications to correct heart rhythm problems, says a U.S. Food and Drug Administration safety announcement issued Monday. read more..
Idiopathic Cardiomyopathy-Southwestern New Mexico-Ultramarathon Runner-Medical Investigator
SANTA FE, New Mexico (Reuters) - Ultramarathon runner Micah True died from heart disease while on a run last March in the rugged wilderness of southwestern New Mexico, an autopsy report revealed Tuesday. True, 58, was found to have idiopathic cardiomyopathy, heart disease with an unknown cause, the state's Office of the Medical Investigator found. The coroner found numerous abrasions on True's extremities but no sign of internal injuries, though the left side of his heart was found to be enlarged. Chemical tests revealed the presence of caffeine and mild dehydration. ... read more..
Friday 11 May 2012
Dock Connector-Power Port-Car Mounts-Pro Flex-Iphone
When it comes to car mounts for the iPhone and iPod touch, there are a lot of 'em available. I personally despise windshield suction-cup mounts, as every one I've tried has fallen off my windshield as soon as it heats up in the strong Colorado sun. When I saw Bracketron's new Universal USB Power Dock Pro Flex (US$34.95), I decided to give it a try -- it avoids the suction cup failure mode by running a 'stalk' up from the AC adapter port in the car's console. My car mount woes are further aggravated by the fact that I use a mophie juice pack air battery case on my iPhone 4S. Many of the car mounts I've tested have required a bare iPhone, so I've had to remove the case every time I want to put the phone into a mount. Not so with Power Dock Pro Flex. It's adjustable, and I'm able to easily get iPhone and case into the mount. However, there's one little fly in the ointment; the arms on the case that hold the phone in place end up covering the charging port for the juice pack air so that I can't charge it. I was able to resolve that problem by placing the iPhone into the mount upside-down! It's not the recommended way and definitely not suggested if you're putting an iPhone (with or without case) into the Power Dock Pro Flex and planning on charging it through the Dock connector. The Power Dock Pro Flex is designed to be universal, meaning that it works with a variety of smartphones. That's why it doesn't come with a Apple Dock connector cable; you'll have to supply your own. It does come with a USB to micro-USB cable, which works flawlessly to keep the juice pack air charged. The mount plugs directly into a standard 12V power port in a car and has a flexible arm that ends in a ball-mounted holder for the phone. The part of the mount that's plugged into your power port has an LED to indicate that you have power, and the aforementioned USB port. Bracketron uses a feature called "power grip arms" that insures that the plug is going to stay put in that 12V power port. For those of you who might be wondering, I do NOT look at the phone when I'm driving -- that's what voice directions are for, so it makes no difference if my iPhone is within my field of vision or not. I'm pretty happy with the Power Dock Pro Flex, and it's reasonably priced. It keeps an iPhone in an accessory case securely held in my car while providing a way to charge it, and that's all I need. It's also a perfect fit for those who may have several people with different smartphones who want to use the same mount in one car.Bracketron Power Dock Pro Flex keeps iPhone secured and powered in your car originally appeared on TUAW - The Unofficial Apple Weblog on Thu, 26 Apr 2012 18:00:00 EST. Please see our terms for use of feeds.Source | Permalink | Email this | Comments read more..
Monday 7 May 2012
Drugmaker Elder Pharmaceuticals-Nutrition Products-Nutrition Business-Direct Knowledge
MUMBAI (Reuters) - Drugmaker Elder Pharmaceuticals is exploring options to sell its nutrition products business, two sources with direct knowledge of the development said. One of the sources said Elder is looking for a valuation of roughly $60 million to $75 million for the business, which includes about 20 brands, and that discussions are at a very early stage. Elder Pharma Joint Managing Director Alok Saxena denied that the company was looking to sell the business. "We are not selling anything, nor are we discussing this with anybody," Saxena said in an emailed reply to a query from Reuters. ... read more..
Camera Accessories-Camera Grip-Liveaction-Belkin-Iphone
One of the best places to get 1) fun, 2) useful, and 3) fun (did I already say that?) photo accessories is Photojojo.com. Since the advent of iPhoneography, Photojojo has become the go-to spot for those little attachments and goodies for your iPhone photography pleasure. I recently had the opportunity to review three new Belkin accessories courtesy of Photojojo, and some lucky TUAW reader will have a chance to win these goodies in a giveaway. Gallery: Belkin LiveAction Camera Accessories for iPhone - from Photojojo Let's take a look at this trio of accessories and their companion app, Belkin LiveAction (Free).
Belkin LiveAction Camera Grip
The thinking behind the design of the LiveAction Camera Grip (US$40) is that the iPhone and iPod touch aren't really set up like traditional cameras. The Camera Grip provides an easy way to hold your iPod touch or iPhone 4/4S in one hand and then push a large black button conveniently placed at the tip of your index finger to take the photo. There's a smaller red button that starts and stops video recording with your device. The Camera Grip installs easily on all "naked" devices and on iPhones with slim cases. Part of the grip plugs into the 30-pin dock connector port, while two spring-loaded arms grip the body of the iPhone tightly. On the bottom of the grip is a standard tripod screw mount for those situations where you want to use a monopod or tripod. The location of the shutter button is perfect for right-handers, and the video start/stop button is relatively flat so that you don't accidentally start shooting video when you mean to take a still photo. It's a very comfortable grip as well, and doesn't add the weight and bulk of some other grips like the OWLE bubo. So far, so good. I love the feel of the Camera Grip and the way that it allows one-handed shooting. But unfortunately the Camera Grip can only be used with the LiveAction app, and it's not the best photography app out there. If you like to shoot snaps with Instagram and share them with friends, or you're a fan of the awesome Camera+ app, you're out of luck. Belkin's LiveAction app only allows direct sharing to Facebook, through email, and saving images to your Camera Roll. However, if you want to use the three LiveAction accessories, you're stuck with the LiveAction app. For those who just use the standard iPhone camera app, it's an acceptable tradeoff, but those who love their other camera apps won't be happy.Belkin LiveAction Camera Remote
The second device in the trio is the LiveAction Camera Remote ($40), which provides an easy way to take photos The Camera Remote is actually a Bluetooth device and comes with a pair of AAA batteries to power the connection between your iPhone and the remote. The remote comes in two pieces -- the handheld remote with a large black (photo) and small red (video) button, the batteries, and the electronics, and a smaller piece that clips onto the iPhone and acts as a stand. The two pieces snap together for transport. The iPhone and Camera Remote are paired, and as with the Camera Grip, the remote only works with the Belkin LiveAction app. I had some issues with the Bluetooth pairing process, and it appears that this is common as there's a note with the remote that says that you will see a "pairing unsuccessful" popup on the iPhone before the device is actually paired -- go figure... When the remote button is pushed, there's about a one-second delay before the photo is taken or the video capture begins. I found that I was able to walk about 40 feet away before the Camera Remote no longer worked; I'm not sure I would want to leave my iPhone on a table unattended 40 feet away! It should be noted that the LiveAction app has a self-timer (5 or 10 seconds) if you wish to use that for group portraits.Belkin LiveAction Mic
The final part of the set is the Belkin LiveAction Mic ($40). It's a small directional microphone that plugs int read more..Sunday 6 May 2012
Tips And Tricks
There are only so many hours in the day—at last count, approximately 20 or so. If you didn’t find time to read all of our articles this past week, we can help. As ever, the Weekly Wrap is here to point you towards some of our most interesting stories you might have missed. read more..
Unhealthy Behaviors-Northern Indiana-Overweight Girls-Amish Children-Healthday News
NEW YORK (Reuters Health) - Amish children raised on rural farms in northern Indiana suffer from asthma and allergies less often even than Swiss farm kids, a group known to be relatively free from allergies, according to a new study. "The rates are very, very low," said Dr. Mark Holbreich, the study's lead author. "So there's something that we feel is even more protective in the Amish" than in European farming communities. What it is about growing up on farms -- and Amish farms in particular -- that seems to prevent allergies remains unclear. ... read more..
Attitude May Be Key to Overweight Girls' Risk of Depression
FRIDAY, May 4 (HealthDay News) -- Overweight teen girls who are happy with their size and shape have higher levels of self-esteem, are less likely to be depressed and are less prone to unhealthy behaviors than those who don't like their bodies, researchers say. read more..
Tanning Bed Mom Highlights UV Ray Addiction
COMMENTARY | Patricia Krentcil of Nutley, N.J., was charged with child endangerment for allegedly putting her daughter in a tanning bed. When photos of Krentcil's very tanned face appeared online, it prompted the Los Angeles Times to question whether she is a "tanorexic." read more..