Apple; $20.8 Billion in Cash, No Public Plans and a lot of Speculation (Try Hosted Groupware for iPhone)

Apple; $20.8 Billion in Cash, No Public Plans and a lot of Speculation
Apple’s heaping pile of cash continues to sit around accumulating low level interest. While most shareholders claim to be bothered by the lack of this money’s use. The debt-free Cupertino based technology company claims to be preserving their flexibility, by letting the sum build up. “Apple Inc. (AAPL) shareholders haven’t had much to carp about, with [...]

Apple’s heaping pile of cash continues to sit around accumulating low level interest. While most shareholders claim to be bothered by the lack of this money’s use. The debt-free Cupertino based technology company claims to be preserving their flexibility, by letting the sum build up.

“Apple Inc. (AAPL) shareholders haven’t had much to carp about, with the stock up 1,474% since 2003. But if there is one complaint, it’s the company’s refusal to do anything with the $20.8 billion in cash and short-term investments it has socked away. The cash just sits there, earning little more than the average savings account,” Peter Burrows reports for BusinessWeek.

“Our preference is to maintain a strong balance sheet in order to preserve our flexibility,” Chief Financial Officer Peter Oppenheimer told investors earlier this year.”

Flexibility aside, if Apple thought this money had a better home other than their bank account, it would already be there.

Apple has been adding $1 billion in cash to the ever-growing pile of money, each quarter. Some analysts are saying that with Apple’s strong computer, iPod, and iPhone sales, the company could very well pass Microsoft (MSFT), which has $23.7 billion in cash saved. “”[Apple] could have $40 billion in the bank [in two years],” says analyst Gene Munster of Piper Jaffray (PJC).

Burrows continues to report the following, “The steep accumulation may not be obvious to investors. One reason is the way Apple accounts for iPhone sales. It books the revenue from each iPhone over 24 months because the phones are sold as part of a subscription through AT&T (T) and other carriers. But Apple gets all the money as soon as customers buy, so cash hits the balance sheet long before revenues show up. A second reason is Apple appears to be getting more for each iPhone than analysts expected. While AT&T and others charge customers $200 for the entry-level model, some analysts now estimate the carriers pay Apple $500 to $600 a phone for the right to charge users lucrative service fees.”

Apple’s stock has been hammered through the last 4 months or so, but overall since the iPhone was released, the stock has soared. Some investors and shareholders are content with Apple continuing to build up a very impressive pile of cash. Others would like to see Apple make some more acquisitions, “Valuations are low, and Apple has the marketing horsepower” to turn promising technologies into hits, says Murray M. Beach, managing director at investment bank TM Capital.

“One radical possibility would be for Apple to snap up content. Some analysts think the company should explore acquisitions in the music business, taking advantage of the major labels’ dire straits. Though that may create conflicts, Apple could use its knowledge of shoppers to create innovative sales incentives and promote new acts. “The music industry has come to believe that their industry will be smaller,” says one source close to Apple. “Apple wants it to be a bigger, more profitable industry,” Burrows explains. Apple declined to comment.

“Apple has many options beyond mergers and acquisitions. With prices for raw materials skyrocketing, American Technology Research analyst Shaw Wu thinks Apple should provide funds so its suppliers can stock up before prices rise more. Apple could also take equity stakes in startups working on technologies important to its future. For example, Apple has a glaring need for better batteries for its new iPhone,” Burrows reports.

Although it wouldn’t make sense for Apple to completely acquire a new company based on the need for longer lasting batteries. Other components that are used in the iPhone, that drain the battery life as well. It’s not just one key technology that determines the current battery life for the device. (Think GPS, 3G, Wi-fi.)

“Analyst Charles Wolf of Needham & Co. figures the company doesn’t need more than $5 billion on hand, but he says investors aren’t likely to complain,” Burros explains. “I’d say something if this was a sleepy company with no growth,” says Wolf. “That’s not Apple.”

Surely Apple has plans for the ever-expanding sum of money. With top level guidance such as Apple’s, Wall Street can’t do anything but sit back and speculate. When Apple decides to make a move with that money, we will all know about it.

Original source of this article is Peter Burrows, senior writer for BusinessWeek, based in Silicon Valley .

iTunes 7.7.1 Update Released; Improves Stability and Performance
An iTunes update has been released by Apple. The update is said to “improve stability and performance.” The update is available through your system’s software update. Use iTunes 7.7 to sync music, video, and more with iPhone 3G, and download applications from the iTunes Store exclusively designed for iPhone and iPod touch with software version 2.0 [...]

An iTunes update has been released by Apple. The update is said to “improve stability and performance.” The update is available through your system’s software update.

Use iTunes 7.7 to sync music, video, and more with iPhone 3G, and download applications from the iTunes Store exclusively designed for iPhone and iPod touch with software version 2.0 or later. Also use the new Remote application for iPhone or iPod touch to control iTunes playback from anywhere in your home — a free download from the App Store.

iTunes 7.7.1 includes fixes to improve stability and performance.

via MacRumors

Apple Patent Application Reveals Add-On Broadcasting
A new patent application may be hinting at Apple’s interest in supporting iPod and iPhone add-on accessories capable of streaming audio and video. Attaching directly to a device, the accessory will be able to receive transmitted signals including AM,FM,HD or satellite radio, TV standards such as cable, satellite, over-the-air or IPTV. via iPodNN. The add-ons have been [...]

A new patent application may be hinting at Apple’s interest in supporting iPod and iPhone add-on accessories capable of streaming audio and video.

Attaching directly to a device, the accessory will be able to receive transmitted signals including AM,FM,HD or satellite radio, TV standards such as cable, satellite, over-the-air or IPTV. via iPodNN.

The add-ons have been reported to come in several possible forms, ranging from a simple portable plug-in to more complex options like a dock, stereo or all out computer. The key technology that Apple is describing in the patent is the concept of a “tag” button, that would allow users to pull metadata on whatever it is that they are receiving, be it an artist or track for a song, or title, episode or actor for a TV show…etc. This information can even utilize GPS support to supply location-based information.

When “tags” are synced to a device, the add-on accessory could then supply information that could be used in other circumstances, say for online shopping or to generate personalized web pages.

“Apple’s hardware concept bears some resemblance to an upcoming PacketVideo product called the PV, which should be able to attach to the iPhone and iPod touch to deliver TV by converting WiMAX TV broadcasts into regular Wi-Fi signals.”

Full Article.

Apple Pulls Out of Black Hat Security Conference
“Apple Inc. has pulled its security engineering team out of a planned public discussion on the company’s security practices, which had been set for next week’s Black Hat security conference in Las Vegas. The panel would have been a first for Apple, but the company pulled out of the discussion at the last minute, Black Hat [...]

“Apple Inc. has pulled its security engineering team out of a planned public discussion on the company’s security practices, which had been set for next week’s Black Hat security conference in Las Vegas.

The panel would have been a first for Apple, but the company pulled out of the discussion at the last minute, Black Hat Director Jeff Moss said in an interview Friday,” Robert McMillan reports for ComputerWorld.

“Marketing got wind of it, and nobody at Apple is ever allowed to speak publicly about anything without marketing approval,” Moss said.

“The panel would have been a highlight of the show, giving attendees an insider look at Apple’s security response team. Apple is notoriously secretive about its security policies, a stance that has made it a constant target of criticism in the security community. “It was them talking about security engineering and how they take security seriously,” Moss said. “It would have put Apple in a positive light.”

“Due to circumstances beyond my control, I regret that I will not be able to participate in Black Hat this year,” the panel’s organizer said in an e-mail to conference officials, read over the telephone by Moss on Friday. Moss declined to say who from Apple was scheduled to speak on the panel, saying that by naming them, he could put their jobs in jeopardy.”

“An Apple spokesman was unable to comment immediately for this story.”

Additional thoughts: Secrets secrets, are no fun. Secrets, secrets hurt someone.

Full article at ComputerWorld here

[Update x2] Apple Puts the Kibosh on Tethering App
“Apple Inc. yanked an application yesterday from its online App Store that would have let iPhone owners share its cellular data connection with a notebook.” “Created by Canadian developer Nullriver Inc., the NetShare tethering application was posted for a short time Thursday on Apple’s App Store, the online mart for iPhone and iPod touch [...]

“Apple Inc. yanked an application yesterday from its online App Store that would have let iPhone owners share its cellular data connection with a notebook.”

“Created by Canadian developer Nullriver Inc., the NetShare tethering application was posted for a short time Thursday on Apple’s App Store, the online mart for iPhone and iPod touch applications. Within hours, however, it had been pulled from the store.” Reports ComputerWorld .

“As of this morning, searches on the App Store for NetShare returned empty results.”

“We’re not quite sure why Apple took down the NetShare application yet, we’ve received no communication from Apple thus far,” the company said in a statement posted to its Web site today. “NetShare did not violate any of the Developer or App Store agreements.”

“NetShare lets users access the Internet from a notebook by “tethering” it to an iPhone’s wireless data connection, essentially turning the smart phone into a movable wireless hot spot.”

“According to information published about NetShare, the application runs the iPhone as a proxy for the notebook. That allows the notebook to piggyback on the iPhone’s 3G or EDGE data network to connect to the Web and send e-mail even when outside the range of a traditional Wi-Fi signal.”

“Null River said it was trying to get an explanation out of Apple, which controls the App Store and determines which applications can be sold there. “We’re hoping we’ll get some feedback from Apple today. We’ll do our best to try to get the application back onto the App Store if at all possible,” the company said. “At the very least, we hope Apple will allow it to be used in countries where the provider does permit tethering.”

“AT&T Inc., the exclusive mobile operator for the iPhone in the U.S., does not officially allow tethering for Apple’s device. However, it provides the service for $30 extra per month to BlackBerry users.”

“Apple did not reply to questions about why NetShare was yanked from App Store.”

“Before it was pulled, Apple was selling the application for $9.99. By the agreements it strikes with developers, Apple keeps 30% of all sales.”

Article

Update : It appears that NetShare has emerged back on the App Store following its strange disappearance. However, it will currently not show up on iTunes search and can only be accessed via a direct link .

Update x2 : NetShare has been removed from the iTunes App Store again. No explanation given from Apple.

Nullriver explains the following on their blog: Apple has taken it down again, with no explanation yet again. Update: NetShare is now back up and available from the AppStore! We’re not quite sure why Apple took down the NetShare application yet, we’ve received no communication from Apple thus far. NetShare did not violate any of the Developer or AppStore agreements. We’re hoping we’ll get some feedback from Apple today. Sorry to all the folks that couldn’t get it in time. We’ll do our best to try to get the application back onto the AppStore if at all possible. At the very least, we hope Apple will allow it to be used in countries where the provider does permit tethering.

Kerio Technologies Announces Teqdis as a Leading Distributor in India
New Alliance to offer Kerio MailServer and Kerio WinRoute Firewall in India for the Fast Expanding Market

Apple Set to Launch “iPhone nano” in Time for Christmas?
Dailymail.co.uk (a site out of the UK) reports to have spoken with an industry source, who is claiming that Apple will unveil an “iPhone nano” in time for the holiday shopping season. “Apple is about to launch a ‘nano’ version of the hugely successful iPhone. It is expected to be in the shops in time for [...]

Dailymail.co.uk (a site out of the UK) reports to have spoken with an industry source, who is claiming that Apple will unveil an “iPhone nano” in time for the holiday shopping season.

“Apple is about to launch a ‘nano’ version of the hugely successful iPhone. It is expected to be in the shops in time for Christmas. The product will be launched in the UK at up to £150 for pay-as-you-go customers by O2, the mobile phone group owned by Spain’s Telefonica. ‘This will be a big one,’ said an industry source,” Simon Fluendy writes for dailymail.co.uk.

Not many details have been released about the supposed iPhone nano. However, Apple has clearly made it a goal to get the iPhone into as many people around the world’s hands as possible. Our iPhone World Map shows all the countries, carriers, rates and iPhone prices around the world.

The iPhone nano is expected to be targeted at the pay-as-you-go market, giving everyone the opportunity to enjoy the revolutionary user experience the iPhone delivers. “‘The iPhone 3G has been the fastest-selling phone ever in the UK, but it is too expensive to be a realistic proposition in the pay-as-you-go market,” reports Fluendy. Because the pay-as-you-go mobile market does not get subsidized iPhone prices, the release of a genuinely less-expensive device could generate even more staggering sales numbers for Apple.

No details regarding the iPhone nano’s storage capabilities, the inclusion of GPS, 3G, or any other technology that is used in the current iPhone have been given. Although we’d expect the iPhone nano to at least match the current 4GB/8GB storage options the current iPod nano’s offer. Additionally, the inclusion of wi-fi makes much more sense than the GPS chip we now have in the iPhone 3G. And seeing as how global penetration has made it to the top of Apple’s priority list, the iPhone nano would be expected to run on 3G networks. If rumors prove true, it will be interesting to see how Apple markets the new lower-end device.

One expert claims the iPhone nano “would have a touch wheel on the back and display on the front so that numbers would be dialed from behind.”

Although the release of both the original iPhone and the iPhone 3G have proven major successes, Apple’s product diversification can become rather tricky with cannibalization (think iPhone taking sales away from the iPod touch). The iPhone nano could prove to be another major success by directly appealing to a completely different market. A large part of Microsoft’s successful monopoly approach, is their ability to globally get their products into as many people’s hands as possible. With lower-end products such as this rumored iPhone nano, Apple may be well on its way to achieving the same market share success.

Original article here
Image source here

Steve Jobs Doesn’t Call all the Shots; Well When it Comes to Disney
One of Disney CEO, Bob Iger’s strongest moves since taking office was the acquisition of Pixar, bringing the animation studio in-house. The biggest perk of the deal may not just have come through keeping the award winning firm under one roof, but rather keeping a close connection with former Ceo Steve Jobs. As the [...]

One of Disney CEO, Bob Iger’s strongest moves since taking office was the acquisition of Pixar, bringing the animation studio in-house.

The biggest perk of the deal may not just have come through keeping the award winning firm under one roof, but rather keeping a close connection with former Ceo Steve Jobs. As the largest shareholder of Pixar, as well as holding a seat on the Disney board, one would assume that he would have quite a sway over what is being said and done.

This may, however not be the case. While the connection is often displayed positively, for example, Disney’s ABC being the first network to sell TV shows on iTunes, there has been worrisome opposition in the past. There were beliefs that Jobs would somehow be able to overtake Iger and annex Disney into the Apple kingdom. Well, we certainly have not seen anything that closely resembles that type of behavior (yet? kidding). While Disney was on board to sell movies via iTunes, they were hesitant to allow rentals.

The following is taken from a transcript of Disney’s earnings call today, and shows that these questions are still being asked.

Are your interests aligned with Apple CEO Steve Jobs, your single largest shareholder? Does he influence how you distribute content digitally?

Iger: Decisions how to distribute content and what to charge for it are made entirely by the management of Disney. Steve is not involved. Decisions of how we distribute content digitally are made by us. I happen to believe that in a world where more and more people are migrating online that the Disney company would be served well be having a strong presence in that environment. Since we decided to put movies in the iTunes platform we have sold 5 million movies. We believe it’s incremental business.

Our ability to monetize will become more evident. You are seeing an expansion of the marketplace and an increase in consumption. We’ve seen that at ABC where access of to TV programs has never been greater and the amount of consumption has never been greater. I think we’ve been driving incremental revenue.

We have no conflict of interest at all. Our decisions are all made for the shareholders of Disney.

via AlleyInsider.