HP Changes Their Mind and Gives the TouchPad One More Life

Hewlett Packard Co is confused. About a week and half ago, the company announced they were leaving the PC and tablet business, and then set off a buying frenzy by reducing the price of the TouchPad to $99 “from $399 and $499”. The TouchPad sold out incredibly quick. Then the day after, HP released a new desktop. The company sent their VP, Todd Bradley, onto CNBC’s “Closing Bell” to clarify HP’s news. Bradley’s interview was useless – he failed to represent HP’s position or ensure investors. He finished the interview exclaiming HP wasn’t exactly leaving the PC and tablet business but would decide in weeks if they would eradicate it or “spin it off”. The conclusion: HP didn’t know what they were doing. Now, “HP resurrects TouchPad for one last go at the iPad” by Poornima Gupta, Bill Rigby and Edwin Chan of Reuters.com reports HP is going to release a “round” of TouchPads.

The re-release of the TouchPad is inspired by HP’s belief that the TouchPad is getting popular – completely ignoring the motivation of a $300 discount. It seems HP is willing to sell the TouchPad at an extremely reduced price just to have a little glory with a sold out product.  I would like to believe HP is covering up the need to get rid of excess inventory but the company is quoted as saying

“The speed at which it disappeared from inventory has been stunning… We have decided to produce one last run of TouchPads to meet unfulfilled demand”

Apple vs. Samsung: Samsung Delays Product Debut to Prevent Product Ban

After previously having their Galaxy Tab banned in Europe (except the Netherlands), Samsung has a new strategy for escaping other possible bans: delaying sales. “Samsung delays tablet launch in Australia on Apple suit” by Miyoung Kim of Reuters.com reports Samsung is planning to “delay the launch of its latest Galaxy tablet computer in Australia until after a court ruling in September in its ongoing global dispute with Apple.”

The article reports the disputes started in April. So far, it has resulted in bans on the Galaxy Tab and three of the Galaxy smartphones. The theory behind the patent suits is “Apple seeks to rein in the growth of Google’s Android phones by taking [direct] aim at the biggest Android vendor, Samsung”. Samsung is also successful in selling the Galaxy tablet, which is probably the only other substantial competitor to the iPad.

Apple claims Samsung has stolen the style of the iPhone and iPad and thus, infringed on its patents. But Samsung is fighting the Apple suits, especially in Australia, where the Galaxy Tab has yet to debut. Samsung’s statement regarding their counter-suit:

Innovator Steve Jobs Resigns as CEO from Apple

Wednesday, the business world was hit with the sad, but not surprising, news that Steve Jobs, co founder and CEO of Apple, is resigning as CEO. Jobs wrote an official resignation letter – NYtimes.com has the letter here. He will move on to serve as chairman of the board. His successor is COO Tim Cook who has served as CEO during Jobs’ previous two medical leaves. Cook joined Apple 13 years ago after Jobs came back in 1996.

The worry and the sadness of Jobs' resignation is rightfully due to his extraordinary innovative insight and leadership that most believe are irreplaceable. Jobs is the man behind Apple’s greatest products: the iPod, which lead to more convenient mobile music and the recording industry compromising on licensing music; the iPhone, which jumpstarted the smartphone era; and the iPad, which no other company has yet to reach it’s volume of sales. Whether you own any of these products or prefer PCs and android, no person could deny the power of Steve Jobs and the amazing mind he possesses to create products that have revolutionized technology. This is not to say he is the only person contributing to this era of technology but when he creates his product, his energy and faith in it is untouchable.

I have not seen any other major CEO create the kind of passion and anticipation behind products in the same fashion as Jobs. I utterly believe that he loves his creations. His presentations are detailed, enthralling, and, most importantly, about the product. Jobs may personally prefer the simplicity of jeans and black tops, but it seems it’s his way of taking attention off of him and placing it on the product. Nevertheless, his product showmanship has branded Jobs with Apple products.

iPhone 5 Coming to Sprint but Could Help AT&T

Sprint is joining Verizon and AT&T as a carrier of the iPhone. According to “Sprint to Get iPhone 5” by Joann S. Lublin and Spencer E. Ante of WSJ.com, Sprint will debut the iPhone 5 in October.

Sprint is the “third-largest carrier” and is experiencing a loss of subscribers. Their recent subscription report, 52 million, doesn’t come close to the volumes of Verizon and AT&T, 106 million and 99 million, respectively. The addition of the anticipated iPhone 5 is sure to bring more subscribers towards Sprint. Sprint will also get the iPhone 4, which should attract customers who do not wish to pay the price tag of a newly released iPhone.

But, according to the article, there is a caveat to having the iPhone 5…

…“the deal could also hurt Sprint by helping AT&T improve its chances of winning approval from regulators for its $39 billion purchase of T-Mobile USA”.  The AT&T – T-mobile merger would create the largest cell carrier. Sprint has worked hard to prevent the merger, including submitting their own research to the government allegedly proving that AT&T could improve and expand without using T-Mobile.  Sprint uses the argument of competition to fight the merger but honestly, they are more fearful of being pushed to the bottom or out of the market by the future AT&T- T-mobile entity.

The article didn’t go into detail about the reasons the Sprint iPhone would help AT&T. But considering the merger could be approved if AT&T could argue that it doesn’t reduce competition, the iPhone could be used as a means to support the idea that Sprint will not suffer from the merger because the iPhone is increasing competition.

Ford and Toyota Teaming Up on Hybrid Vehicles

Ford and Toyota are collaborating to hopefully introduce rear wheel hybrid vehicles with sync technology. “Toyota, Ford to collaborate on hybrid truck” by Bernie Woodall of Reuters.com reports Ford CEO Alan Mulally and Toyota CEO AkioToyoda have been in talks for some years about working together and yesterday, it was announced that the partnership is official. The article reports the vehicles should be in the market by the end of the decade.

The first thought most would have about the news is shock. Ford prides itself as the essential American-made rough-and-tumble brand while Toyota is all about fuel efficiency and has enjoyed some success in the U.S. market at the time in which Ford experienced some problems. Most of us see Toyota and Ford as different competitive brands, most unlikely to collaborate. But the article mentions that both have something the other wants.

Ford is well known for their trucks and has excelled in vehicle technology with their Sync system, “an option that allows drivers to control stereos and cell phones with voice activated commands.” Ford has yet to introduce a hybrid able to achieve the success of the Prius. Mulally is quoted saying, “This is the kind of collaborative effort that is required to address the big global challenges of energy independence and environmental sustainability”.

Google Entering Mobile Manufacturing with Plans to Buy Motorola Mobility

Yesterday, Google announced it is buying Motorola Mobility. Motorola Mobility is the recent result of a split of former Motorola into the mobile division and Motorola communications earlier in the year. According to “Google agrees to buy Motorola Mobility for $12.5 billion” by Nathan Olivarez-Giles of LAtimes.com, the paid price mentioned is reported as “a premium of 63% over the closing price of Motorola Mobility shares on Friday”.

Larry Page, CEO of Google, Inc. is hoping the purchase will be approved and completed by the end of this year or early next year.  Google would become a mobile manufacturer competing with Apple in both manufacturing and software. The article reported that Motorola Mobility would function as a separate company.

The most important aspect of this deal is patent ownership. Google will own Motorola’s patents and Page believes it will benefit competition:

“Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies”.

Recently, patent/trademark disputes by Apple have resulted in Samsung getting their Galaxy Tab booted out of the EU, except the Netherlands. Google has a point that patent stealing accusations are too close to anti-competitive behavior.  They will be able to defend their placement in the mobile game and stretch their power into manufacturing. Google will also compete with other manufacturers that use their Android platform. Despite plans to keep Motorola Mobility as a separate entity, Google will function as both business partner and competitor with many other companies.

Fashion Designer Louboutin Sues YSL over Trademarked Signature and Loses

Apple can sue Samsung (and has won a big victory in the EU) over similarities between Samsung Galaxy tablet and the iPad, Best Buy can go on suit-spree against any entity that uses the word Geek, but a fashion designer cannot win over a signature use of color. Christian Louboutin makes high luxury shoes all with red soles. The red-sole signature is internationally known in the fashion industry and widely accepted as some in the industry refer to the shoes as “red bottoms”. In 2008, the U.S. Patent and Trademark Office (USPTO) trademarked the red soles. Given this status Louboutin sued Yves Saint Laurent (YSL), another fashion design company, as they started to premiere shoes with red soles. Unfortunately,  “Color Wars: Luxury Makers Battle Over Red-Soled Shoe” by Ray A. Smith and Ashby Jones reports a Judge has shut down Louboutin’s request to stop YSL’s red-soled shoes.

Judge Marrero is quoted as stating:

“Because in the fashion industry color serves ornamental and aesthetic functions vital to robust competition, the court finds that Louboutin is unlikely to be able to prove that its red outsole brand is entitled to trademark protection”

The lawyer for YSL responded with “No designer should ever be allowed to monopolize a color”

Is this a monopoly of a color, a company protecting a well-known trademarked signature, or both? The article gives examples of fashion companies (e.g., Louis Vuitton, Levi-Strauss, Burberry) with trademark protection on their designs. We all are aware that the blue from Tiffany & Co. is trademarked as “Tiffany Blue”. So colors and signatures have been trademarked and protected.

Apple vs. Samsung: Samsung Galaxy Tablets Banned in the EU

Apple can claim a victory in their legal battle with Samsung. Apple has various “multi-country patent infringement” suits against Samsung claiming the Samsung Galaxy tab and line of Galaxy smartphones are replicas of the iPad and iPhone. “Apple blocks Samsung from selling Galaxy tablet in EU” by Hyunjoo Jin and Poornima Gupta of Reuters.com report a German court has banned Samsung from selling their tablet in all areas of the European Union, except the Netherlands.

The response from Samsung:

“The request for an injunction was filed with no notice to Samsung and the order was issued without any hearing or presentation of evidence from Samsung”

While Apple is a customer of Samsung, purchasing their mobile chips, Samsung is becoming one of their substantial competitors as the Galaxy tab and phones are enjoying success. Samsung’s tablet has also gotten good reviews compared to other non-Apple tablets. Nevertheless, Apple is still the market leader.

Brian White, an analyst, was quoted as saying “if Samsung is violating Apple’s IP (intellectual property) rights, we believe Apple could enjoy even further success in these markets in the coming years”. Whether believing Samsung to have intentionally copied Apple products or Apple trying to stop the only other successful tablet in the market, the legal battles could cripple Samsung; It would leave Apple's position as market leader secure. I like competition between manufacturers, I think it’s one of the reasons that Apple continues to push out products even when their current products are highly successful. But Apple could be right, and only future legal rulings can prove them wrong.

Comcast Sues DirecTv for False Advertisement and Stealing Customers

In a move to fight their competitor, Comcast is suing DirecTv for false advertisement. “Comcast sues DirecTv, says false ads lure NFL fans” by Lianna B. Baker of Reuters.com reports that Wednesday Comcast filed their suit with the accusation that DirecTv is “misleading consumers by promising ‘free’ broadcasts of [NFL] games”.

The suit claims that DirecTv is recruiting prospective Comcast customers with promises of free NFL Sunday ticket games without “[disclosing] that the offer requires customers to sign up for two-year contracts that cost hundreds of dollars, with hefty fees for early termination”. Such advertising is “disparaging [Comcast’s] cable services” and Comcast calls the advertisement  “an outright lie” from a “serial false advertiser”. The lawsuit is asking for “alleged improper profits, as well as punitive damages and a halt to the ads”.

DirecTv gave a simple response stating that Comcast allegations are false and they will defend themselves.

According to Comcast, all DirecTv failed to do was disclose about having to sign up for a contract in order to get a promotion. Companies cannot give false information but we all know from our experiences, they can and do leave out information from major advertisements. This suit seems to be Comcast’s way of fighting a good advertisement that is working to steal customers, but it could bring more marketing oversight to the entire cable industry leaving Comcast with no industry supporters on their side. Consumers are going to have a hard time supporting Comcast because they (Comcast) have made it clear their focus is getting back expected lost profits and punishing DirecTv for gaining subscribers.

How exactly does Comcast quantify the amount of consumers they should have had? The assumption is any subscriber gained from the promotion was destined to become a Comcast subscriber, which is an arrogant assumption unless supported by hard facts. Comcast might just have to live with the reality that sometimes a competitor’s promotion works and Comcast should instead spend their money on their next big advertisement.

Watch Your Mouth: Allstate Executive Fired for Talking Trash about Boss

No one has a perfect boss. You might feel your boss is incompetent or you might at any given time disagree strongly with a decision your boss has made. Some of us bite our tongues, confide and rant with a fellow co-worker who sympathizes, or take the chance of respectfully presenting your boss/employer with valid reasons behind the disagreement. But it is not smart to vulgarly rant about a boss in a bar, in front of many executives/co-workers, in the midst of a company event. The result could be you’re fired.  “Loose Lips Trip Up Good Hands Executive” by Erik Holm and Joann S. Lublin of WSJ.com report that Joseph Lacher, formerly of Allstate, was fired from the insurer for committing this ultimate workplace indiscretion.

Lacher was president of Allstate home and auto insurance units and on July 18 the company surprisingly reported his exit. Those familiar with the company were aware that Thomas J. Wilson, the chief executive, was not pleased with Lacher’s performance. But the article is reporting “several people familiar with the situation” are divulging that Lacher was fired for referring to his boss in a vulgar manner. The incident:

“[Lacher] was having drinks with some of Allstate’s top-selling insurance agents as part of a company event called the Leaders Forum…earlier in the day… Messrs. Lacher and Wilson unveiled plans to shrink Allstate’s sales force and change the way the insurer calculates commission.

Some agents were angry about the changes… Mr. Wilson, who wasn’t at the bar, was a popular target.

Then came the two words that helped end Mr. Lacher’s 20-month career at Allstate: ‘f—cking a—‘”