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New Low Cost Airline
Independence Air: Ready For Takeoff This Summer
http://www.flyi.com/
Destinations, Low Fares And Start Dates To Be Unveiled in May
Service From Washington Dulles to First Launch Cities Will Begin June 16th
Dulles, VA, (April 5, 2004) – Independence Air and parent company Atlantic Coast Airlines Holdings, Inc. (Nasdaq: ACAI) today announced the launch sequence for its long-awaited new low-fare service that will feature over 300 daily departures from Washington Dulles International Airport this summer—making it the largest low-fare hub in America.
In May, Independence Air will hold a nationwide satellite news conference and launch celebration from Washington, DC. This kickoff event will be broadcast live on the internet, and will be available to media outlets across the country. On that date, Independence Air will unveil additional details of its launch plan to the public, including:
The destinations Independence Air will serve starting this summer
The low-fare pricing and simple, hassle-free travel experience
The convenient schedule of frequent departures to/from each destination
The opening of its FLYi.com reservations website for customer bookings
The exact start dates of service to the Independence Air destinations
Low-fare service to Independence Air’s new destinations will begin this summer based on the agreed transition schedule of its jet aircraft still in service with United Airlines, as reported in a separate release issued earlier today. The inaugural Independence Air flights are scheduled for June 16th, and more will be added throughout July, August and September—quickly building up to over 300 daily departures this summer.
Chairman and Chief Executive Officer Kerry Skeen said, “This is it! Independence Air is ready for takeoff this summer, and we couldn’t be more excited. Over the past few months, thousands of travelers in the Washington/Northern Virginia area and communities across the country have told us they are thrilled to hear about a new low-fare service that will make air travel faster and easier—and we will finally answer that demand in May when Independence Air is officially open for business.”
Independence Air service will be provided using a fleet of over 110 jet aircraft fitted with new slimline leather seats, including at least 25 new 132-passenger Airbus 319s with over 20 channels of live satellite TV available at every seat. The Airbus planes—which are scheduled to launch in November—will allow Independence Air to offer coast-to-coast low-fare service to additional destinations in Florida, the Midwest and West Coast.
The “preview” website for Independence Air is available now at www.FLYi.com. Web visitors who sign up for membership to the iCLUB will receive additional information about Independence Air services, and be offered the opportunity to take advantage of special offers and promotions available only to members.
For more information about Atlantic Coast Airlines Holdings, Inc., please visit our website at www.atlanticcoast.com.
United and Atlantic Coast Agree to a Split
By MICHELINE MAYNARD
Published: April 6, 2004
http://www.flyi.com/
United Airlines and Atlantic Coast Airlines, which operates as a regional carrier under the United Express name, agreed yesterday to sever their relationship by late summer, ending a long and bitter dispute.
At the same time, Atlantic Coast said its new low-fare subsidiary, Independence Air, would begin flying June 16 using Dulles airport outside Washington as its hub. The airline will use the gates that now handle United Express flights, and will serve many of the same routes.
With 300 Independence arrivals and departures a day planned by late summer, Dulles would become the busiest hub for a low-fare airline in the United States.
Independence Air said it would buy 15 jets from Airbus - 10 small A319 jets and 5 larger A320 jets. It also plans to lease 10 A319 jets for a total of 25 Airbus planes. The airline said it would use those planes along with the 50-seat regional jets already in its fleet - a strategic departure from the common low-fare carrier practice of using a single aircraft type for all flights.
United, which is part of the UAL Corporation and has been in Chapter 11 bankruptcy court protection since December 2002, is building its own facilities at Dulles. The settlement with Atlantic Coast, known as A.C.A., requires the approval of the United States Bankruptcy Court in Chicago, which is scheduled to consider the deal on April 16.
Officials at A.C.A., based in Arlington, Va., said they would announce details of Independence's routes and fares later this spring. But they said the route map is sure to expand beyond the cities A.C.A. now serves with United Express flights, mainly on the East Coast. Once its new Airbus A319's go into service in November, the company said it intended to add service to Florida, the Midwest and the West Coast.
A.C.A. displayed Independence's new logo - a lowercase white letter "i" with a dark blue dot inside an aqua-colored circle - and said that the airline would offer many of the amenities of other new low-fare carriers, like in-flight entertainment systems and online flight reservations. Its preview Web site is www.flyi.com.
Michael Allen, chief operations officer of BACK Aviation Solutions, a consulting firm, said A.C.A.'s experience in working with United and with Delta - it operates those flights under the Delta Connection name - would give Independence Air an advantage in the hotly competitive low-fare market.
Independence Air will start with a much larger fleet - 110 aircraft - than either Delta's Song unit or United's new low-fare subsidiary, Ted, which began flying with a handful of jets, Mr. Allen said.
"Everyone's watching this, certainly, with great interest," Mr. Allen said of Independence Air.
A.C.A. had been under contract to fly United Express routes through 2010, but last year United proposed a significant reduction in lease payments to A.C.A. for the use of its planes. If A.C.A. did not agree, United had the right under bankruptcy law to ask a judge to nullify the contract completely.
The two carriers tried negotiating a new contract but the talks failed; A.C.A. then announced the creation of Independence and said it would proceed whether its relationship with United continued or not.
Yesterday, the two airlines said that United would begin freeing A.C.A.'s planes from United Express duties in June, with all ties severed by Aug. 4.
United has rounded up seven other small airlines, including Air Wisconsin, Chautauqua Airlines and Mesa Air Lines, to serve as United Express carriers in A.C.A.'s place. In addition, the Ted subsidiary will start flying from Dulles tomorrow.
Late last year, Mesa made an unsolicited takeover bid for A.C.A., and signed a nonbinding agreement with United to serve as its regional carrier if the bid succeeded. The deal was abandoned in December after the Justice Department began an investigation into Mesa and United, and a judge found that the deal might have violated antitrust laws.
Low-fare carriers now control about 25 percent of the domestic air travel market, up from just 4 percent a decade ago.
Microsoft's Janus
By John Borland, Special to ZDNet
06 April 2004
Microsoft is expected to unveil copy-protection software soon that will for the first time give portable digital music players access to tunes rented via all-you-can-eat subscription services--a development that some industry executives believe will shake up the online music business.
Sources say the technology--code-named Janus and originally expected more than a year ago--was recently released in a test version to developers and that a final release is now expected as soon as July.
Janus would add a hacker-resistant clock to portable music players for files encoded in Microsoft's proprietary Windows Media Audio format. That in turn would help let subscription services such as Napster put rented tracks on portable devices--something that's not currently allowed. Fans of portable players could then pay as little as US$10 a month for ongoing access to hundreds of thousands of songs, instead of buying song downloads one at a time for about a dollar apiece.
Few online music subscription plans have enjoyed great success to date, but some music company executives said they believe Janus will make renting music more attractive to consumers and eventually give a la carte download services such as Apple Computer's iTunes Music Store a run for their money.
Device makers, too, see the software as a way to take on Apple and its industry-leading iPod player, which for now offers no support for rented music. Anticipating the Janus release, MP3 player makers including Samsung have already begun advertising support for the technology in a handful of high-end products.
"To us, Janus finally provides the platform on which we can build a new type of experience for the consumer," said Zack Zalon, president of Virgin Digital, the British conglomerate's new online-music division. "We believe this is it. This is what consumers are going to want. We want to be big participant in changing consumers' attitude towards what music really is."
Microsoft executives associated with the project declined to confirm details of the technology's release. "As we've said before, enabling access to unlimited downloads on consumer devices will open up all new scenarios for the distribution and enjoyment of digital content," Jason Reindorp, the group manager for Microsoft's digital media division, said in an e-mail statement.
Online-music insiders have debated for years about whether future services will ultimately resemble a traditional CD store--requiring consumers to purchase each single song--or a new model in which subscribers pay a monthly fee for unlimited access to all available music, without the right to keep the music after they stop subscribing.
Apple chief executive officer Steve Jobs has been the most prominent proponent of the pay-per-download model, saying that consumers want to own, not rent, their music. Apple's iTunes supports solely downloads, one of the few services to focus exclusively on a single model, and has captured a dominant part of the market to date, selling more than 50 million tracks in its first 11 months.
Others argue that consumers used to the anarchic world of Kazaa and other file-swapping networks have grown accustomed to having thousands of music files at their fingertips. Only services that offer that kind of breadth of content--without requiring customers to pay thousands of dollars--will wean digital music aficionados away from file swapping, argue subscription advocates.
Analysts said they expect subscription services to trail downloads in popularity, given the alien quality of the rental concept.
David Card, a digital media analyst with Jupiter Research, said he doesn't expect Janus to drive dramatic growth in online music subscriptions, adding that it could take years for music rentals to challenge CD and download sales, if they ever do.
"I think this is good, but it's not as if this is a silver bullet," he said. "It is important in adding another feature to the ultimate goal of creating the 'celestial jukebox,' but it's probably not going to jump-start the market."
What's in it for Microsoft?
The Janus release comes as Microsoft is prepping its own commercial music service, which is expected to launch on its MSN Internet service this year and may include a subscription component along with the ability to purchase downloads.
Although Microsoft plans to get into the retail music market, its primary ambition is to be a technology provider and ultimately make its software the de facto industry standard for encoding and playing back digital media files--goals toward which the company could take a big step if subscription services based on Janus catch on.
Microsoft has worked hard to establish its Windows Media file formats in the industry and has won converts among record labels and music services. But it has struggled to win over consumers, having made relatively little headway against the dominant MP3 file format even as it has drawn antitrust scrutiny over its digital media plans.
Last month, European regulators hit Microsoft with a US$617 million fine in relation to its digital media practices and ordered the company to offer PC makers a version of its Windows operating system with its media player stripped out. The software giant is also battling a civil antitrust suit involving its digital media business in the United States, where rival RealNetworks is seeking up to US$1 billion in damages.
Part of the trouble with subscription services to date is that subscribers typically haven't been able to transfer the millions of files available to them to their portable music players. Record labels have largely required that subscription content "time out," or be made unplayable if a subscriber stops paying, and MP3 players haven't had the capability to support that feature.
That's where Janus comes in. The technology would add a "secure clock" to Microsoft's Windows Digital Rights Management technology, which would let an MP3 player tell whether a particular file was past its expiration date.
Microsoft has been working on that problem--a technically tricky one--for quite some time, and industry sources have said the company originally planned to announce it at the 2003 Consumer Electronics Show in Las Vegas.
Considerable time has elapsed since then, but sources say Microsoft developers finally appear to be reaching the finish line. Beta, or test, versions of the software have gone out to some developers within the past month, industry sources say. The software is expected to be released by late summer or early fall, with some citing a date as soon as July.
A few MP3 player manufacturers, including Gateway and Samsung, have begun quietly advertising Janus support in the specifications for their new high-end products. A representative of MP3 player manufacturer Digital Networks North America said the company was in negotiations with Microsoft and would support Janus, when released.
A Gateway representative said that company had been mistaken in listing current Janus support in the iPod-like player now available on Gateway's Web site, since Microsoft has not yet provided final specifications. But the company would support the technology when it was released, the representative said.
Online music companies are clearly eager for the prospect to make their subscription offerings more attractive to a generation of consumers who are snapping up iPod-like MP3 players, which can hold thousands of songs at a time.
"We are very excited about it, and will support it," said one executive at a music service, who asked not to be named. "We believe it's real and think it will be implemented."
Music service executives said they were still in negotiations with record labels over how to treat the new technology. Allowing people to bring thousands of songs at a time to portable players may wind up costing more than the US$10 a month that most subscription services charge today, the executives said.
Nevertheless, some music services are eager to drive more consumers to subscription plans, since per-song download stores have tiny or even nonexistent profit margins.
"There are a couple of companies that are dependent on (subscriptions) for a steady revenue stream that doesn't have a one penny margin," said Liz Brooks, senior vice president of business development for Buy.com's BuyMusic site, which does not offer a subscription plan. "This could be very important."
Jupiter's Card notes that consumers have repeatedly said in surveys that owning music is important, however. It will take considerable time before a large part of the market grows used to the idea of subscribing to music the same way people subscribe today to TV services, they say.
"I think we're really at the stage for the next few years where (subscription) music services are for music aficionados, not for the mass audience," he said. "There are not enough of them that this is going to be a $10 billion business anytime soon."
Air NZ refits jumbos at $20m a plane
Upgrade needed to compete
Auckland: Air New Zealand says the cost of upgrading its fleet of eight Boeing 747-400 jumbo jets with new seats and television screens will be $20 million a plane.
The airline increasingly faces competition from airlines with better seats and in-flight entertainment options and some in the industry feel Air NZ has already "missed a generation" of product development by not installing seat-back television screens in its economy-class seats.
It is now competing on transtasman routes with airlines such as Emirates, which flies a new Airbus A340-500 aircraft, where passengers in first, business and economy classes have access to about 500 channels of movies, music and computer games.
Chief executive Ralph Norris told a conference in Australia the fleet refit would cost $160 million.
Previous estimates went as high as $200 million.
Money for the upgrade will come from Air NZ's operating cash flow.
Air NZ has eight 747-400 aircraft in its fleet, four leased and four it owns. Refitting a leased aircraft and so increasing its value to the owner would mean Air NZ got better terms for the rest of the lease.
The refits would take about a month and involve pulling out floor and wall panels, rewiring huge sections of the aircraft and installing new seat tracks and electronics.
Putting new electrical systems in aircraft means a lot of careful work on safety issues.
Mr Norris admitted the airline's long-haul "product" was "starting to look tired".
Once finished, the planes would have new economy seats, lie-flat beds in the "premium cabin", new in-flight entertainment and "a new look" for flight attendants and customer service workers.
He said the changes would "bring our long-haul offering on par with, and in many cases ahead of, our peers".
Mr Norris' reference to the "premium cabin" raises the possibility that first class will be removed from the Air NZ 747-400 fleet.
On its main 747-400 route between Auckland and North America, Air NZ has only Qantas competing on the non-stop flights.
Qantas has cut its first-class service from this route, instead extending its business-class cabin and providing lie-flat seats.
Air NZ's own team of engineers would be prime candidates for doing the refurbishment work, as it has already won contracts to do similar work for other airlines. - NZPA
Monday, 5-April 2004
SilkAir to offer limited inflight entertainment on many services
SINGAPORE : Many SilkAir flights are going to quietly get more entertaining from Thursday, 8 April.
It is introducing in-flight entertainment on trips of two hours or more in response to feedback from customers.
But initially only silent short video features like sports bloopers, cartoons and comedies like Mr Bean will be shown.
It is looking at the potential costs of fitting its cabins with audio systems and supplying passengers with personal headsets. - CNA
Digital Rights Management Coming of Age
NEW YORK, NY -- (MARKET WIRE) -- 04/05/2004 -- AXcess News (www.axcessnews.com) released a story covering the recent attention Digital Rights Management (DRM) has received in the form of studies and reports with growth pushing usage up from 2% currently to over 20% by 2006 fueled by video and music organizations.
Taking a closer look at the companies who'll benefit most was OTC Journal's Industry Trade Report issued March 16 that focused on the emerging technology (DRM) and the companies investors should watch.
The Journal noted Microsoft with its Digital Rights Manager held up by patent infringements by InterTrust. In December, RealNetworks sued Microsoft, accusing the Redmond WA software company of monopolizing the market by requiring Windows users to accept their Media Player.
Sony acquired InterTrust last year and RealNetworks is pursuing a strategy that supports of each of those companies formats as well as MP3.
Amongst micro caps, NuTech Digital (OTC BB: NTDL) was also noted in the OTC Journal's report. The Los Angeles-based DVD distribution company has already begun to market its own DRM system to distribute media online, either sales or rental and is also moving into licensing its technology.
On March 22 NuTech unveiled its DRM system to the general public, offering a free test-drive for investors and consumers alike.
JupiterResearch analyst Todd Chanko said, "The upside is that consumers have also indicated a willingness to pay more to be able to copy and share both music and video. Content providers need to view DRM not only as a piracy prevention tool, but also as a way to create new revenue streams."
JupiterResearch announced March 24 the results of their first survey from its new Digital Rights Management research service.
To read about another study released last week on DRM and more on JupiterResearch's findings, go to AXcess News to read the entire article: http://www.axcessnews.com.
About AXcess News:
Dubbed the "Yahoo! of small cap business news" by Gordon Borrell, one of America's leading media and research gurus, AXcess News is fast becoming a known commodity for both the serious investor and people in general looking for informed articles and insightful columns. http://www.axcessnews.com.
--------------------------------------------------------------------------------
Media Contact:
Eric Stevenson
Of AXcess News
+1-775-882-1720
editor@theaxcess.net
"A few MP3 player manufacturers, including Gateway and Samsung, have begun quietly advertising Janus support in the specifications for their new high-end products. A representative for Diamond Rio maker Creative said that company was in negotiations with Microsoft, and would support Janus when released.
A Gateway representative said that company had been mistaken in listing current Janus support in the iPod-like player now available on Gateway's Web site, since Microsoft has not yet provided final specifications. But the company would support the technology when it was released, the representative said".
Microsoft's iPod killer?
By John Borland
CNET News.com
April 2, 2004, 4:00 AM PT
Microsoft is expected to unveil copy-protection software this summer that will for the first time give portable digital music players access to tunes rented via all-you-can-eat subscription services--a development that some industry executives believe will shake up the online music business.
Sources say the technology--code-named Janus and originally expected more than a year ago--was recently released in a test version to developers and that a final release is now expected as soon as July.
Janus would add a hacker-resistant clock to portable music players for files encoded in Microsoft's proprietary Windows Media Audio format. That in turn would help let subscription services such as Napster put rented tracks on portable devices--something that's not currently allowed. Fans of portable players could then pay as little as $10 a month for ongoing access to hundreds of thousands of songs, instead of buying song downloads one at a time for about a dollar apiece.
Few online music subscription plans have enjoyed great success to date, but some music company executives said they believe Janus will make renting music more attractive to consumers and eventually give a la carte download services such as Apple Computer's iTunes Music Store a run for their money.
Device makers, too, see the software as a way to take on Apple and its industry-leading iPod player, which for now offers no support for rented music. Anticipating the Janus release, MP3 player makers including Samsung have already begun advertising support for the technology in a handful of high-end products.
"To us, Janus finally provides the platform on which we can build a new type of experience for the consumer," said Zack Zalon, president of Virgin Digital, the British conglomerate's new online-music division. "We believe this is it. This is what consumers are going to want. We want to be big participant in changing consumers' attitude towards what music really is."
Microsoft executives associated with the project declined to confirm details of the technology's release. "As we've said before, enabling access to unlimited downloads on consumer devices will open up all new scenarios for the distribution and enjoyment of digital content," Jason Reindorp, the group manager for Microsoft's digital media division, said in an e-mail statement.
Online-music insiders have debated for years about whether future services will ultimately resemble a traditional CD store--requiring consumers to purchase each single song--or a new model in which subscribers pay a monthly fee for unlimited access to all available music, without the right to keep the music after they stop subscribing.
Apple Chief Executive Officer Steve Jobs has been the most prominent proponent of the pay-per-download model, saying that consumers want to own, not rent, their music. Apple's iTunes supports solely downloads, one of the few services to focus exclusively on a single model, and has captured a dominant part of the market to date, selling more than 50 million tracks in its first 11 months.
Others argue that consumers used to the anarchic world of Kazaa and other file-swapping networks have grown accustomed to having thousands of music files at their fingertips. Only services that offer that kind of breadth of content--without requiring customers to pay thousands of dollars--will wean digital music aficionados away from file swapping, argue subscription advocates.
Analysts said they expect subscription services to trail downloads in popularity, given the alien quality of the rental concept.
David Card, a digital media analyst with Jupiter Research, said he doesn't expect Janus to drive dramatic growth in online music subscriptions, adding that it could take years for music rentals to challenge CD and download sales, if they ever do.
"I think this is good, but it's not as if this is a silver bullet," he said. "It is important in adding another feature to the ultimate goal of creating the 'celestial jukebox,' but it's probably not going to jump-start the market."
What's in it for Microsoft?
The Janus release comes as Microsoft is prepping its own commercial music service, which is expected to launch on its MSN Internet service this year and may include a subscription component along with the ability to purchase downloads.
Although Microsoft plans to get into the retail music market, its primary ambition is to be a technology provider and ultimately make its software the de facto industry standard for encoding and playing back digital media files--goals toward which the company could take a big step if subscription services based on Janus catch on.
Microsoft has worked hard to establish its Windows Media file formats in the industry and has won converts among record labels and music services. But it has struggled to win over consumers, having made relatively little headway against the dominant MP3 file format even as it has drawn antitrust scrutiny over its digital media plans.
Last month, European regulators hit Microsoft with a $617 million fine in relation to its digital media practices and ordered the company to offer PC makers a version of its Windows operating system with its media player stripped out. The software giant is also battling a civil antitrust suit involving its digital media business in the United States, where rival RealNetworks is seeking up to $1 billion in damages.
Part of the trouble with subscription services to date is that subscribers typically haven't been able to transfer the millions of files available to them to their portable music players. Record labels have largely required that subscription content "time out," or be made unplayable if a subscriber stops paying, and MP3 players haven't had the capability to support that feature.
That's where Janus comes in. The technology would add a "secure clock" to Microsoft's Windows Digital Rights Management technology, which would let an MP3 player tell whether a particular file was past its expiration date.
Microsoft has been working on that problem--a technically tricky one--for quite some time, and industry sources have said the company originally planned to announce it at the 2003 Consumer Electronics Show in Las Vegas.
Considerable time has elapsed since then, but sources say Microsoft developers finally appear to be reaching the finish line. Beta, or test, versions of the software have gone out to some developers within the past month, industry sources say. The software is expected to be released by late summer or early fall, with some citing a date as soon as July.
A few MP3 player manufacturers, including Gateway and Samsung, have begun quietly advertising Janus support in the specifications for their new high-end products. A representative for Diamond Rio maker Creative said that company was in negotiations with Microsoft, and would support Janus when released.
A Gateway representative said that company had been mistaken in listing current Janus support in the iPod-like player now available on Gateway's Web site, since Microsoft has not yet provided final specifications. But the company would support the technology when it was released, the representative said.
Online music companies are clearly eager for the prospect to make their subscription offerings more attractive to a generation of consumers who are snapping up iPod-like MP3 players, which can hold thousands of songs at a time.
"We are very excited about it, and will support it," said one executive at a music service, who asked not to be named. "We believe it's real and think it will be implemented."
Music service executives said they were still in negotiations with record labels over how to treat the new technology. Allowing people to bring thousands of songs at a time to portable players may wind up costing more than the $10 a month that most subscription services charge today, the executives said.
Nevertheless, some music services are eager to drive more consumers to subscription plans, since per-song download stores have tiny or even nonexistent profit margins.
"There are a couple of companies that are dependent on (subscriptions) for a steady revenue stream that doesn't have a one penny margin," said Liz Brooks, senior vice president of business development for Buy.com's BuyMusic site, which does not offer a subscription plan. "This could be very important."
Jupiter's Card notes that consumers have repeatedly said in surveys that owning music is important, however. It will take considerable time before a large part of the market grows used to the idea of subscribing to music the same way people subscribe today to TV services, they say.
"I think we're really at the stage for the next few years where (subscription) music services are for music aficionados, not for the mass audience," he said. "There are not enough of them that this is going to be a $10 billion business anytime soon."
CNET News.com's Evan Hansen contributed to this report.
Hi. I'm Ted Waitt, co-founder and chairman of Gateway, Inc.
We really appreciate your business, and I want to let you know about some changes we're making.
You may be aware that Gateway recently acquired eMachines, Inc., making us the third-largest PC maker in the U.S. This is a development we're really excited about and I'm pleased to let you know that eMachines' CEO, Wayne Inouye, has become Gateway's new CEO while I'll continue to remain actively involved as chairman. During his time at eMachines, Wayne developed an incredible reputation among customers and within the PC industry, evidenced by a recent PC World report that gave eMachines the number one spot on several reliability and service measures.
So what does this mean for you, the Gateway customer?
There are still a lot of details we need to work out as part of the merger, but basically, you can expect even better prices across a wider line of exciting new technology products and services, from low cost eMachines PCs to Gateway's best selling Plasma TV and award-winning line of digital cameras, mp3 players, home theater products, and more. And more places to buy those products too.
As part of Gateway's new direction, we've also made the difficult decision to close our 188 Gateway stores across the nation. Our stores have been a source of pride for Gateway since the mid-'90s, but despite enormous effort we haven't been able to run them profitably. And we believe that our customers will be served very well by the increasing availability of our products, as well as through our existing phone and Web outlets (1-800-Gateway and www.gateway.com).
My pledge to you is that you'll continue to have ”a friend in the business“ in Gateway. I think you'll find that our Web and phone sales teams are the best in the industry. When we started this company nearly 20 years ago, our goal was to offer products directly to the customer, providing them with the best value for their money and unparalleled service and support. We remain committed to the very same principles today.
If you've used one of our retail service centers, rest assured you can count on the same friendly and knowledgeable service you've been getting at your store by utilizing our other service and support options. To see a full listing of our customer care options, please visit support.gateway.com.
Gateway is a solid company and the acquisition of eMachines - and the many growth opportunities it presents - means we'll become even stronger going forward. As we grow, we look forward to continuing to serve your technology needs for a long, long time to come.
Sincerely,
Ted Waitt
Gateway to Close Retail Stores, Cut Jobs
POWAY, Calif. (AP)--Troubled computer maker Gateway Inc. announced Thursday it will shutter all of its retail stores next week, eliminating 2,500 jobs, or nearly 40 percent of its work force.
The company, based in the San Diego suburb of Poway, said its 188 stores will close on April 9 and workers will be dismissed as the store operations wind down.
The company, which recently posted its 12th loss in 13 quarters, said it is exploring other retail options to sell its products.
Gateway has been struggling in a PC market dominated by Dell Inc. and Hewlett-Packard Co. It has expanded its product line to include plasma-screen televisions, digital cameras and other consumer electronics.
It recently completed its purchase of Irvine, Calif.-based eMachines Inc. for $290 million and named Wayne Inouye its new chief executive, the same job he held at eMachines. Inouye replaced Gateway founder Ted Waitt, who remains the company's chairman.
On Tuesday, Gateway announced it will move its headquarters north to Orange County, closer to home for many of the executives who joined the company from eMachines.
Gateway was founded in 1985 in an Iowa farmhouse and evolved into one of the world's biggest and most influential computer makers over the next decade. The company is known for its distinctive cow-spotted boxes, a tribute to its farm heritage.
The company moved its headquarters to the San Diego area six years ago. About 550 of its 6,500 workers are based at its headquarters. At the end of 2002, the company had 11,500 employees, and in 2000 it had 25,000.
The Gateway stores will all close on the same day. Spokesman David Hallisey said it was still unclear how the company would deal with its stores' inventory. Gateway plans to continue selling its products over the Internet and by phone.
AP-NY-04-01-04 1808EST
No More Wires For iPod Fans PLUS IFE APPLICATION?
KAVITHA ALEXIS
BANGALORE: Apple iPod (digital music player) customers across the world will soon have a bluetooth wireless adaptor and headset for listening to music without the hassles of a cable hanging overhead.
Developed in India by Bangalore-based Impulsesoft Technologies, iWisa (wireless adaptor) and iWish (wireless headset adaptor) have been licensed to US-based TEN Technology to be used in naviPlay, one of the first bluetooth wireless stereo adaptors with remote control, which is attached to an iPod. naviPlay will be launched in the market in the next 2-3 months.
Speaking to eFE, Impulsesoft Technologies Pvt Ltd chairman M Chandrasekaran said, “We are providing the software and hardware for the naviPlay wireless adaptor and headset.” The Impulsesoft iWisa adaptor can be attached to the iPod dock while the iWish headset adaptor allows the use of any stereo headphones or speakers with a standard 3.5 mm stereo plug. naviPlay also has an LCD display and buttons for remote audio functions, playlist and menu navigation.
According to Mr Chandrasekaran, the two products — iWisa and iWish — have a range of potential applications, from a car entertainment system, a PC, a regular audio system to a CD player. Currently, the company is working closely with a Japanese automaker for a multi-zone car entertainment system on which each passenger can listen to the music of his/her own choice using an iPod and wireless headsets. This system is expected to be launched in 2005.
Yet another product in the exploration stage is a wireless headset for a bluetooth enabled phone on which seamless switch between listening to MP3 music and a phone conversation.
This work is being conducted in collaboration with a major cell manufacturer. This product too, should be in the market by 2005, estimates Mr Chandrasekaran. The inflight entertainment segment has been idenfied as another potential area. For each of this applications, the core technology used is the same but customisation of 20-30 per cent is required depending on the customer requirements, said Impulsesoft sales director KA Srinivasan. With quite a few products being readied for commercial launch, the company is expecting 2004-05 to be a watershed year. “At least 20 per cent of the revenue would come from royalty on these technologies,” he said.
Impulsesoft customers include leading global OEMs in Japan, Korea and Europe and they have alliances with technology partners such as Intel, Philips, Panasonic, Samsung, Acer and Sony.
I agree about free tedvision. That was my point )I gues not well made lol) that the 10 dollar rental fee was more of a factor than any negative about the player.
Hawaiian charges $5 for in flight movie.
http://www.hawaiianair.com/flightinfo/
http://www.hawaiianair.com/about/services/movies.asp
Hawaiian Airlines
3 B-767-300ER 252 seats
4 B-767-300ER 259 seats
7 B-767-300ER 264 seats
NDA's
LOL
Different clientele...Ted Vs Hawaiian...NO?
From Ted
Passengers "liked the content on the units, and they like the fact they can control the viewing," Donohue said. "They can stop, go back and switch from a movie to a music video."
Feedback on the price "was rather neutral," so the carrier might test a lower price in the next few weeks to see if demand increases, he said
I take this to mean ten dollars was too much for most folks on Ted. You may have a different take.....
I believe the tempered enthusiasm for digEplayer on Ted was due to the $10 charge, not the player.
Yes and no.......eom
Great publicity for e.Digital..........eom
Manufacturers Can't Make Mini Digital Music Players Fast Enough
By Jim Fuquay, Fort Worth Star-Telegram, Texas Knight Ridder/Tribune Business News
Mar. 30 - In search of a replacement for his broken MP3 digital music player, Nathan Ward had narrowed his choice to Apple's iPod Mini and Dell's Digital Jukebox by the time he visited an Apple Store in Dallas.
"The Dell's cheaper," Ward, 30, said as he examined a multihued array of $249 iPod Minis at the shop in Dallas' trendy Knox-Henderson neighborhood Saturday. The Dell is usually the same price, but the company has temporarily slashed it by $50.
Ward left without making a decision, although Apple's reputation for ease of use and the Mini's business-card dimensions were appealing, he said. The Mini weighs less than 4 ounces, holds about 1,000 songs and is smaller than the wallet-sized standard iPod and Dell.
Even if Ward had been ready to buy, he would have walked away from the Apple Store empty-handed. Demand for the iPod Mini has taken off since its Feb. 20 debut, but supplies are short.
At the Apple Store, the best shoppers can do is put their names on a waiting list. Several other stores, including Foley's, Best Buy, Circuit City, CompUSA and Target, quickly sell out each time a shipment arrives.
The Mini's popularity highlights the increasing consumer demand for digital music, a trend driven in part by larger numbers of homes with high-speed Internet access. Demand for the Mini has prompted electronics manufacturer Hitachi to increase production of the hard drives Apple uses in the device. And there's a lively Internet market for the little iPods.
"The Mini is just a little-bitty device," said Louis Hardin, owner of Hardin Computers in Arlington, Texas. Hardin owns a silver iPod Mini, which he notes is "even smaller than my cellphone."
Store officials say they get a half-dozen Minis every couple of weeks and are sold out within hours. In comparison, it's not hard to find the standard iPod or Dell's Jukebox.
"We got five or six (Minis) when Apple first sent them to each store," said Harold Floyd, sales manager at the CompUSA store in west Fort Worth. "They were gone immediately."
Floyd said the Mini shortage is worse than the shortages that followed the introduction of video-game consoles such as Sony's PlayStation2 and Microsoft's Xbox.
Apple, which makes one of every three MP3 players shipped to stores in the United States, said it took more than 100,000 orders for the Mini before the device's debut. Apple's Web site advises buyers to expect shipping to take one to three weeks.
On Thursday, Apple announced that it was delaying sales of the Mini outside the United States from April until July, citing demand "far exceeding the total planned supply through the end of June." The company has not said how many of the units it has shipped.
The shortage has sparked vigorous auction sales on eBay, where Minis are selling for more than their list price. One day last week, an "almost new" silver Mini went for $275, while "new in box" versions for immediate delivery were commanding prices topping $300.
The bidding was especially spirited among eBay users in Britain. One enterprising seller offering tips on how to locate a Mini drew more than a dozen bids that topped $20 for the tips.
Portable digital music players debuted in early 1998, and U.S. sales more than doubled last year. With that has come a rush of paid online music downloading services. Leading the way is Apple's iTunes Music Store, which recently announced that it has sold more than 50 million songs online at 99 cents each.
Last week, Wal-Mart launched its own 88-cent music download service. The world's biggest retailer joins other paid online music services, including Rhapsody and Napster. Microsoft said this month that it will start an online music store in the second half of the year.
Industry observers say the increasing number of U.S. homes with access to high-speed Internet connections, such as cable or DSL service, is driving up the number of music downloads. Songs that take several minutes to download via a dial-up connection can be captured in seconds at higher speeds.
"It's the combination of the players with the cheaper downloading" and the fact that they work so easily together, Ward said. "It's all becoming so user-friendly."
By all accounts, the shortage of Minis is real, not just static from some production foul-up.
Hitachi said Friday that it will boost output at the Thailand plant that makes the 1-inch, 4-gigabyte hard drives used in the Mini. A Hitachi spokesman declined to offer details other than to say that demand is higher than anticipated but that the expansion "will come sooner rather than later."
The Mini's success is not at all what was predicted.
Conventional wisdom said the price tag was too high, echoing criticism heard in October 2001 when Apple launched the original iPod for $400. That led wags to joke that iPod stood for "Idiots Price Our Devices."
The only ones laughing now are the folks at Apple, which has sold more than 2 million iPods, bringing in $744 million as of Dec. 31.
In the last three months of 2003, Apple sold 733,000 iPods. That's more than three times as many as it sold in the same quarter of 2002, and that doesn't include the Mini, which hadn't yet been introduced.
Cathryn Watkins, 24, an Austin, Texas, resident who was in Dallas to visit her parents Saturday, has her own explanation for the iPod Mini's success. She's owned one, in a lustrous silver tone, for about a month.
"It does more than you ever knew," said Watkins, who was shopping at the Apple Store. "You can stick it in your car and play through your car stereo. You can plug it into your home stereo. You can hook it up to speakers anywhere."
Apple's largest iPod, a 40-gigabyte model, holds as many as 10,000 songs, the company says. But Watkins said the Mini has enough capacity for her.
"I can work out and run and all that and never get tired of the songs," Watkins said.
Doug Cochran and Michelle Grant of Dallas, who were browsing for a Mini in the Apple Store on Saturday, agreed.
"The overall size is more appealing than anything else," Cochran said. "A thousand songs is plenty. If you want more than that, you can just download them from your computer."
Staff writer Andrea Ahles contributed to this report.
works for me eom
RCA Lyra A/V Jukebox RD2780
March 22, 2004
By Daniel S. Evans
Company:
RCA, www.rca.com
Price:
$499.99 list
Spec Data:
3.5-inch color LCD, CompactFlash slot, USB 2.0, composite video input/output
Pros:
Shape, interface, and toggle controls are very intuitive; all-in-one device has many uses and plenty of storage
Cons:
Viewing screen is small and pixelates with some dark colors; poor battery life; device prone to skipping in audio mode
Bottom Line:
The RD2780 is a solid, good-looking product. If you're currently in the market for an MP3 player, spend the extra money and get the additional features that come with the RD2780.
Review
RCA's first entry into the burgeoning video jukebox category isn't quite a slam dunk, but it earns the company points. Like any first product, the RCA Lyra A/V Jukebox RD2780 succeeds on some levels and fails on others. As a 20GB multifunction device, the RD2780 can store up to... click here for full review
A Portable Video Jukebox
RCA's first entry into the burgeoning video jukebox category isn't quite a slam dunk, but it earns the company points. Like any first product, the RCA Lyra A/V Jukebox RD2780 succeeds on some levels and fails on others. As a 20GB multifunction device, the RD2780 can store up to 80 hours of video or 5,000 songs. A color screen means you can also store and view photos and document files on this novel device. But the battery life leaves something to be desired, and a few minor performance complaints detract from the overall quality.
Metallic silver with a 3.5-inch screen at 320 by 240 resolution, the RD2780 fits nicely on your desk and has a convenient kickstand. You use toggle joysticks on its front to navigate the menus, and a CompactFlash slot atop the player lets you transfer files easily from your digital camera.
As an audio jukebox, the RD2780 is pretty standard. It has the usual top-down navigation. Unfortunately, it currently lacks a playlist feature, though RCA says that it will add this in an upcoming firmware download. Transferring video files from your PC is quick and easy using the USB 2.0 interface and the embedded MPEG-4 encoder/decoder. The RD2780 also comes with two audio/video patch cables, which allows for easy recording from other video sources. RCA has also included a nice time-stamp feature for video playback. Say you're watching a movie on your way to work and you have to stop halfway through; set a time-stamp and you can pick up where you left off.
The main problem we encountered with the RD2780 was the battery life during video playback. If you are going on a long flight and expect to watch several films without charging, then this isn't the product for you. After watching a typical 2-hour movie, the battery was almost completely drained. RCA says the RD2780 should provide 4 hours of video playback, but we failed to see this level of performance in our testing. The screen also tended to pixelate when displaying very dark colors. As for audio, the RD2780 has reasonable sound but skips sometimes when jarred or moved quickly; clearly the 20GB hard drive isn't optimized for portable activities. You can actually feel the drive spinning during playback.
There are few direct competitors to compare with the RD2780, although we expect the video jukebox market to explode later this year. It's a higher-end product than the HandHeld ZVUE, and thus comes with a higher price tag. A closer competitor is the Archos Video AV320 Video Recorder; the RD2780 is less cumbersome and somewhat cheaper.
The Lyra is a very solid product. If you're currently in the market for an MP3 player, spend the extra money and get the additional features that come with the RD2780
Samsung Expands Use of SRS Labs' WOW(TM) Technology For Its Latest Digital Audio Players
Monday March 29, 7:32 am ET
SRS WOW Rapidly Becoming Technology of Choice for the Market Leaders in Digital Audio
SANTA ANA, Calif., March 29 /PRNewswire-FirstCall/ -- SRS Labs, Inc. (Nasdaq: SRSL - News), a leading provider of innovative audio, voice and semiconductor technology solutions, today announced that its patented stereo audio enhancement technology, SRS WOW(TM), continues to be chosen by leading manufacturers of consumer electronics products to deliver the best quality audio experience. Samsung Electronics, the number one manufacturer of digital audio players in Korea, has expanded their use of WOW in their popular line of Yepp digital audio players. WOW creates powerfully vivid and immersive 3D audio with accompanying deep, rich bass over headphones and earbuds, despite the small sized speaker drivers. Not only does WOW deliver a fully engaging listening experience, but it does so without any accompanying listener fatigue and without the need for additional equipment from the manufacturer. The newly released Yepp models, which are now shipping in a variety of countries around the world, include YP-60 and the YP-T5, to be unveiled in April 2004.
Last year, Samsung and SRS Labs signed a global licensing agreement, which allows for the inclusion of WOW audio technology across multiple Samsung divisions. These new MP3 players are the latest products from the digital media division to be manufactured under this agreement and join the YP-35, YP-55, YP-780, and the MCD-CM600 players that were launched last fall.
Steven Kim, director of Korean regional sales for SRS Labs, said, "Samsung is recognized as a technology innovator, leading the digital audio market in Korea and we are very pleased that they have continued to standardize on SRS WOW for their Samsung digital audio player line. The combination of their innovative designs and our powerful audio features provide consumers around the world with the best quality portable audio experience. We look forward to continuing to collaborate on future projects."
Industry experts estimated that in 2003, the global portable audio player market generated over $1.3 billion and is poised to explode to over $4 billion by 2007, with an average growth rate of more than 30 percent. As the use of portable digital audio products becomes more mainstream, consumers will continue to demand higher quality from the headphone listening experience. SRS WOW gives manufacturers the ability to deliver a headphone audio experience that rivals the deep, rumbling bass and full, rich enveloping sound that consumers have come to associate with home theater surround sound systems.
SRS WOW is a complete and scaleable suite of 3D audio, bass enhancement and mono and stereo speaker technologies that can be customized by a portable audio manufacturer to improve the quality of any audio played on an embedded mobile device. WOW solves several of the mobile audio player's most serious challenges including the delivery of 3D stereo audio separation and the creation of deep, powerful bass for music played over headphones or earbuds. In addition, WOW's ability to lift the audio image up and outside of a listener's head eliminates fatigue, which is a common problem when listening to audio over headphones for long periods of time.
Currently available on the world's leading semiconductor and software platforms such as Analog Devices, ARM, Cirrus Logic, SigmaTel, Telechips, Texas Instrument's OMAP, Intel's XScale, Microsoft's Windows Media Player, Motorola Coldfire and OKI, WOW is the first choice for manufacturers to include in their product designs due to its flexibility, ease of integration and consumer demand for better audio performance. It works with any media player that can pass PCM data to the WOW library where WOW performs its patented processing techniques and then sends out processed PCM to the DAC and amplifier.
About WOW
SRS WOW is the number one stereo enhancement technology in the world. Over 300 million hardware and software products have shipped or been downloaded that include this powerful audio post processing technology that makes up for the physical size limitations of smaller speakers and headphones by providing a panoramic, three-dimensional audio image that extends the sound in both the horizontal and vertical planes well beyond the physical limitations of the speakers or headphones themselves. As a result, manufacturers of small audio devices can dramatically improve their products' audio performance without increasing the size of the speakers or headphone drivers. Among the products that feature WOW are digital audio players from Dioneer, eDigital, Hyunwon, iBead, iRiver, Olympus, RIO Japan and Samsung; personal computers from Sony and Toshiba; mobile phones from NEC, the number one handset maker in Japan, and Samsung, the number one handset maker in Korea; LCD, plasma and traditional CRT sets from LG, Metz, Onida, LG, Samsung, Sony and Toshiba; and Microsoft's Windows Media Player 9 Series of software products
More Info? Apple tries to patent iPod interface
Matt Loney
ZDNet UK
March 29, 2004, 14:40 BST
Apple got bitten once when trying to protect its user interfaces from competitors. Now the company is turning to patents in its efforts to protect the iPod
Apple is trying to patent the interface for its iPod music player.
In its patent application 20040055446, published on Thursday, Apple describes a graphical user interface "and methods of use thereof in a multimedia player". The patent application refers to a hierarchically ordered graphical user interface and lists Apple chief executive Steve Jobs, Jeffrey L. Robbin and Timothy Wasko as inventors.
Jeff Robbin was the primary author of SoundJam, the MP3 player which Apple bought the rights to in early 2000 as it sought to make up for lost ground in digital music after it underestimated demand for CD-RW drives. Robbin moved to Apple with the acquisition, where he later took a lead role on iTunes. Tim Wasko worked with Steve Jobs at NeXT before moving back to Apple after Jobs took up the post of iCEO (and later CEO).
This is not the first time Apple has tried to stop others from copying its interfaces.
In the late 1980s, Apple agreed to license parts of the user interface that appeared in the Lisa and Macintosh computers to Microsoft, which was then working on Windows 1.0. But as Microsoft added more features in Windows 2.0 and later in 3.0, Apple in 1988 filed a copyright infringement lawsuit against Microsoft and HP (which at the time was working on an Apple-like skin for Windows called NewWave) to stop them using elements that it used in its Lisa and Macintosh platforms. Apple lost all its claims, except those that related to the trash can icon and file folder icons in HP's long-since abandoned NewWave. An appeal by Apple to the US Supreme Court was later denied.
Critics at the time suggested that Apple was attempting to gain all intellectual property rights over the desktop metaphor for computer interfaces. That case was further complicated when Xerox, which is widely held to have invented the graphical user interface, filed its own lawsuit against Apple saying that it held all copyrights over graphical user interfaces.
Apple appears to have learnt from its mistake in relying on copyright law, and is now turning to patent law to protect its user interfaces. "Patents offer stronger protection than copyright," said Struan Robertson, associate solicitor at law firm Masons. "If what you have done can covered by a patent you are well advised to get the patent. But Apple will still have copyright rights over the interface and so could still assert those in any action."
OT: Al Tech AnyDrive Car MP3 + FM Transmitter
http://tech-mods.net/reviews.php?op=showcontent&id=125
Supports MP3, WMA®, WAV, and future formats
http://www.bantamusa.com/pages/ba1000.php#
Frys ad this week is for the price I stated (see below). No limit on purchase. I just used Bantam/GPX companies website for info on player.
http://shop1.outpost.com/product/3997998
Ot: Fry's has Bantam 2GB HDD players for $149.00!
http://www.bantamusa.com/pages/ba1000.php
Omnifi™ DMP1 20 GB Automobile Digital Media Player
The Omnifi™ DMP1 is light years beyond traditional car audio products. If you’ve ever tried to load a CD changer in your trunk while it’s raining, or dropped your disc wallet in a puddle, or lost or scratched a valuable CD, or are simply tired of radio, you’ll appreciate the value of a secure music library with hundreds of your favorite albums. Moreover, unlike a portable MP3 player that cannot be easily operated in a car, the DMP1 was specifically designed for easy and safe operation while behind the wheel. Most important, the software backbone of this system is easy to use and does everything you need it to do, and it provides the additional perk of setting up your home PC as a music jukebox. Throw in the option of a Wi-Fi® home-to-car connection, and you have one of the most interesting mobile audio products to hit the road in years
http://www.crutchfieldadvisor.com/reviews/20040227/omnifi_review.html
We might be living in the Golden Age of mobile audio/video entertainment. The old standbys of cassette, CD, and AM/FM radio are still alive and well, and they have been enormously juiced up by DVD-Video, DVD-Audio, MP3, XM and Sirius satellite radio, and HD radio. Clearly, no one has an excuse to say they are bored during their daily drive time.
Of all the technological improvements, perhaps none is as pervasive as MP3. MP3 kicked off the file-sharing revolution that is legally (and illegally) changing the business of music, and reshaping how we bring music into our lives and carry it with us. Although a few oldsters still resist, most music lovers now routinely rip CDs into MP3 or WMA files. They burn the files to CD-R, or transfer them to the flash memory or microdrives in their portable players. It is often difficult to connect the output of portable MP3 players into a car playback system (and let’s not even discuss the issue of how dangerous it is to drive while wearing headphones), but many modern car head units can play the MP3/WMA files on CD-R. That means a single disc might hold 10 hours of music — not a bad little library, and one reason why non-MP3 CD changers and players are now passé.
But what if you need to carry a really BIG music library with you? What if you don’t want to swap out discs every few days, or what if you are driving from New York to LA and need a lot of tunes? The answer is a new niche of products that can record hundreds of hours of music on a removable hard drive, then navigate and play back the contents through your car’s audio system. Even better, the task of putting the music on the hard drive can be done wirelessly with Wi-Fi®. In other words, there is a new generation of products such as the Omnifi DMP1 Digital Media Player.
The Omnifi™ DMP1 (Omnifi™ is a division of the well-known audio manufacturer, Rockford Fosgate Corp.) is a hard disk player for the car. Because its music content is ripped or downloaded MP3/WMA files, the DMP1 presupposes that you have a source of files, such as a home computer. (If you are a music lover, your PC might already have a few thousand songs on its hard drive). Also, although the DMP1 can be operated entirely by itself, you might also consider buying Omnifi’s DMS1 Digital Media Streamer, designed for home playback of MP3/WMA files. Finally, using optional equipment, operation of the DMP1 (and the DMS1) can be made simpler by using a Wi-Fi® connection. As you might have already guessed, the DMP1 is a sophisticated product that is far removed from ordinary car audio players.
Next page »
Page 1: The Golden Age of car audio?
Page 2: Moving music from your computer to the DMP1
Page 3: Installing the DMP1 in your car
Page 4: Using the DMP1
Songs sung blue as iPod craze hides a fatal flaw
By Brigid Delaney
March 27, 2004
The iPod is small, sexy and incredibly successful - so popular, in fact, that devoted users might be playing their tiny personal jukebox to death.
Problems with the life of the rechargeable battery that comes with the Apple device are growing here and overseas, with critics saying it eventually runs out and cannot be replaced. Apple says it may be that iPod fans are simply using their new toy too much.
The size of a cigarette packet, the iPod is a personal jukebox with a powerful memory. Its mini hard drive can store up to 10,000 songs at near CD-quality, and users talk about how it has changed the way they listen to music - creating a personalised soundtrack with an entire CD collection they can carry around.
Nearly 3 million iPods have been sold worldwide. At Apple's Taylor Square store, 30 a day were sold this week, with 47 snapped up in just two hours on Thursday - starting at $449, depending on the size of the unit.
It has provided a renaissance for Apple, although the battery problems are casting a cloud over the growing phenomenon.
Fazal Zaman, a sales representative at the electronics store Digital City, says one in 15 iPod buyers complains about the life its rechargeable battery. In the US lawsuits have been launched claiming the batteries last only 18 months and cannot be replaced.
But Benjamin Morgan, director of the Apple Centre in Taylor Square, said that while "we have had people with battery problems", it was more a case of users loving their iPods too much. "People are having battery problems because they are using them 24/7."
The iPod's dream ride has not been missed by the competition.
Dozens of similar products are expected in the next year, with Dell, Sony, Philips and many more set to join the market with mini hard-drive music players. Microsoft's response, the Portable Media Centre, is due in Europe later this year and is expected to also play movies.
For users like Ted Sealey the iPod has become indispensable,
providing a constant soundtrack in his studio or car, while skateboarding or at home. As for battery life, he bought his iPod in October and so far it has been a faithful companion. "It's got 2500 songs on it. I take it travelling with me. I even use the back of it as a shaving mirror."
Mass iPod mini demand good news for Apple, Hitachi
By Jonny Evans
Apple yesterday announced it has delayed worldwide shipments of its iPod mini until July, saying demand is exceeding supply.
The company's vice president of hardware product marketing Greg Joswiak told the Financial Times: "We are actually consuming just about all the 4GB 1-inch Microdrives Hitachi make. As they make more, we'll get more."
Supplies of Apple's new music player remain constrained in the US. Apple yesterday described "stronger-than-expected demand" for the product there.
This has caused Apple to divert products originally intended for international markets to the US. This also means Apple expects to meet its financial targets for the quarter – the product is selling out.
Joswiak explained: "We felt it was better to hold off on the release rather than have shortages everywhere."
Hitachi to increase production
Hitachi could not confirm that it supplies the hard drives for Apple's popular product, but a spokeswoman did confirm to Macworld UK last night: "Yes, Hitachi has seen increased demand for Microdrives."
"The 4GB Microdrive has been immensely popular, and demand is outstripping supply."
Apple's choice of the G5 processor from IBM has revivified the Mac maker's pro desktop products. IBM technology continues to lead the industry – as IBM also developed the hard drives used in iPod mini.
Hitachi acquired IBM's then loss-making Microdrive business unit for $2.05 billion in 2002. Now, the company plans to ramp-up manufacturing for the product, according to Reuters. "We're actively working to boost production capabilities, but cannot share the details of those plans at this time," the company said.
A spokesman said: "We are planning to boost production at our plant in Thailand, and it will come sooner rather than later."
This follows comments from Hitachi Global Storage Technologies CEO Jun Naruse on Wednesday who confirmed that company intends stepping up production to "keep pace with demand," Reuters reports.
Wall Street's digi-music ticker-tape parade
Investor reaction on Wall Street was immediately positive. Historically, Apple's shares have taken a tumble when the company has announced delays in shipping new products. With the global launch delayed because of the product's popularity, investors began snapping up stock.
Investors also took heart from Joswiak's assurance to MacCentral that the iPod mini is not taking sales from the company's market-leading iPod: "The iPod mini is doing as we hoped it would by growing the market for the iPod rather than cannibalizing its existing business," he said.
Apple closed up 5.4 per cent at $26.87 last night (a $1.37 rise on the day). The climb continued on the after hours market, where Apple stock stood at $27.30 at close of trade last night – 84 cents below the company's 52-week high.
Hitachi also benefited from the news. That company's shares rose 3.14 per cent on the days trade.
Thrivent Financial fund manager Jim Grossman called the demand and supply challenge "a nice problem to have".
Cautious coverage creates buying chance
Schaeffer's Investment Research yesterday pointed out that Apple's shares have been under fire in recent days, with both a Barron's report and CNN/Money "admonishing" Apple's recent stock price gains.
"This anecdotal negative sentiment is puzzling, as Apple's fundamentals have rarely been more encouraging," Shaeffer's wrote. This report describes Apple's recent success: its stock has doubled in under a year, and reached a new 52-week high earlier this month. Apple stock is also "perched above its ascending ten and twenty-week moving averages," this report states.
Along with media negativity on the stock, just six of the fourteen analysts that cover it rate it as a stock to buy, and 16.5 million Apple shares being acquired by the short trading market, Schaeffer's said: "This negative sentiment provides a fairly solid "wall of worry" along which the stock can climb in the near term". A buying opportunity.
Apple makes the music
US investors' daily TheStreet.com sees the news as consolidating Apple's lead in the war to dominate the digital music distribution market.
It argues that because the exclusively iPod-compatible iTunes Music Store isn't yet available internationally Apple may benefit from shipping physical product at a point closer to launching the store outside the US.
This piece also points out that mass-market sales of the product – in the US and abroad – will serve to "reinforce" the position of Apple's already market-leading music service.
Standard and Poor's analyst Scott Kessler said: "Once someone has an iPod, they're not changing from iTunes because iTunes is designed to serve iPod users. All the other services are incompatible."
iPod interface 'unbeatable'
By Macworld staff
A patent application exists for the technology behind the workings of the iPod and its user interface (UI) that may explain HP's decision to license the product, and why other MP3 players can't match its ease of use, according to an attorney.
Writing for Mac Observer, US attorney John Kheit reveals that Apple filed a patent application for a "Graphical user interface and methods of use thereof in a multimedia player", on October 28, 2002. This patent application was published by the United States Patent and Trademark Office on March 25, 2003.
Kheit suggests: "Considering that one of the major distinguishing features of the iPod is that it is simply way easier to use and navigate; having a patent on the interface presents a big obstacle to knock-off artists. Dell and other would-be pretenders to the MP3 throne will actually have to come up with their own UI or license it from Apple. This makes HP's decision just to outright license the iPod a lot more understandable."
He adds: "So far, the competition has managed to match or best Apple's MP3 designs in every aspect except ease-of-use. In price, in extra features (hello – what's it going to take for Apple to put an FM radio in an iPod), in battery life, and even size and capacity, other MP3 makers have bettered the iPod.
"However, the UI on other players just plain sucks. Beyond Apple balancing the feature set of the iPod and making it look attractive to most people, the iPod's greatest market differentiating feature has been ease of use."
Kheit asks: "The question is can or will someone else come up with a navigation UI that is "good enough" without getting sued by Apple?"
If the patent application is approved, "it may turn out to be a big ace-in-the-hole for Apple".
"Had Apple secured patents on its desktop user interface, many years ago, the entire landscape of the computer industry would likely be very different today," Kheit observes.
The patent application describes a: "Graphical user interface and methods of use thereof in a portable multimedia device, a method, apparatus, and system for providing user supplied configuration data. In one embodiment, a hierarchically ordered graphical user interface.
"A first order, or home, interface provides a highest order of user-selectable items each of which, when selected, results in an automatic transition to a lower order user interface associated with the selected item. In one of the described embodiments, the lower-order interface includes other user selectable items associated with the previously selected item from the higher order user interface."
The inventors are listed as Jeffrey Robbin, Steve Jobs, and Timothy Wasko.
Dolby Labs becomes player in digital cinema
Sheigh Crabtree
Hollywood Reporter
Mar. 26, 2004 12:00 AM
LOS ANGELES - A firm best known for audio has its sights set on the bigger picture.
Dolby Laboratories, having spent the past 18 months quietly buying up digital imaging and anti-piracy firms, has revealed its intentions to move into the digital-cinema arena.
"We realized there was opportunity to play in more than audio," said Tim Partridge, vice president-general manager of Dolby's professional division. "In fact, we realized that audio is no longer a completely separate path; with digital cinema, we're looking at an integrated system, and we need to understand all the aspects of that system."
Dolby has been exploring opportunities in digital cinema for five years. Three years ago, the firm hired an engineering team to look into digital-cinema systems architecture, and now Dolby is providing a first look at its digital-cinema blueprints at the ShoWest 2004 convention in Las Vegas this week.
At the top of the company's agenda is the goal of developing a dedicated digital-cinema presentation system that would include further implementing security products that could be used by the motion-picture industry from production through exhibition, developing an open-standards d-cinema server and providing d-cinema mastering services to the studios.
The digital-cinema presentation system includes image and sound components.
Dolby has begun deploying products centered on security. Integral to that effort is Cinea, the anti-piracy firm Dolby bought in the fall. Since then, Dolby has launched Stealth Track, an anti-camcorder watermarking technology used in theaters; StealthView, a secure DVD player technology that Dolby hopes will be used by studios for digital dailies; a d-cinema "research project" that entails digital-rights management; and in-flight entertainment security watermarking.
Executives were less forthcoming about development plans for an open-standard d-cinema server since video codecs are still under examination by the seven studios. Partridge offered that Dolby's system would be open and compliant with DCI specs
ot RadioShack in tech collaboration
RadioShack and Motorola are teaming up to get new technology products ready for sale to consumers, in an agreement that pairs Motorola's manufacturing capabilities with RadioShack's 7,000 stores.
The collaboration will start with wireless accessories using Bluetooth technology, developed by a consortium that includes Motorola, IBM, Intel, Microsoft and Nokia. Bluetooth wirelessly connects electronics in close range, allowing a cellphone user, for example, to listen to calls through an earpiece while the handset is tucked inside a briefcase.
Motorola and RadioShack have deep ties, with the electronics chain carrying Motorola mobile handsets, networking equipment and power devices. Under the new product alliance -- one of several that RadioShack has lined up to create a pipeline of fresh merchandise for its stores -- the companies will jointly develop and license consumer products using emerging technology.
"Motorola is dealing with thousands of patents on technologies that we're interested in," said Len Roberts, RadioShack chairman and chief executive. In turn, RadioShack has thousands of stores that can help Motorola bring its goods to a broad base of consumers. Products developed under the pact will start appearing in RadioShack stores by year's end, Roberts said.
Fort Worth-based RadioShack will get part of the revenue generated by the new products, and it will have rights to carry the items exclusively for an agreed amount of time. The chain will also use the international reach of Motorola, a $27 billion company based in the Chicago area, to try to distribute RadioShack's licensed products outside the United States. Other details of the agreement were not disclosed.
Since September, RadioShack has formed alliances with companies including power adapter manufacturer Mobility Electronics and security products maker GlobeSecNine. Future partnerships may focus on music, software and other services that would allow RadioShack to collect residual fees.
"We think we can get involved in providing content," Roberts said.
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Intel shows handheld chip, Microsoft unveils unified PC-console
By Rick Merritt
EE Times
25 March 2004 (9:52 a.m. GMT)
SAN JOSE, Calif. — Seeking growth beyond the PC, Intel Corp. showed its first handheld graphics chip and Microsoft Corp. said it would unify its PC and console graphics environments on the opening day of the Game Developers Conference here.
Aimed at a rising tide of cell phones and PDAs with 3D graphics, Intel described Marathon, a 3D chip it will formally launch in tandem with its next-generation cell phone chip, Bulverde, at the Intel Developer Forum in Taipei, Taiwan, in April. Intel is working with 20 game developers and expects to have five game titles running on the chip using the OpenGL ES interface when it is launched.
Marathon will render just short of 1 million triangles/second and support MPEG-4, MPEG-2 and Windows Media Video codecs for video at resolutions of 640 x 480 or higher. The chip has a peak power consumption of 100 mW and comes in a 14 x 14 mm package.
Intel expects the first generation chip will mainly be used in high-end PDAs but expects future versions could be integrated with its Xscale-based baseband chip to appear in cell phones, probably in 2005.
"All PDAs are moving to VGA in 2004 from QVGA," said Rob McNair, marketing manager for handheld graphics at Intel.
A next-generation version of Marathon will support the emerging H.264 video codec as well as a still-undetermined interface to 1-inch hard disk drives. Support for Global Positioning Satellite and 802.11 interfaces is also on Intel's roadmap.
Intel's entry comes as a host of graphics chips for handhelds from companies including ATI Technologies, Nvidia and others. The chips target cell phones that are beginning to adopt 3D graphics for gaming as well as devices that merge gaming, cellular, MP3 audio and digital cameras.
PC meets console
Separately, Microsoft Corp. announced it is taking steps to merge the graphics software environments of PC and its XBox game console into a set of middleware services and tools it calls XGA. The move brings Microsoft's DirectX graphics applications programming interface from the PC to the XBox for the first time, essentially letting game developers write one title that can be used on PCs and XBox machines.
The move could help attract more game developers to the XBox where it currently lags in number of titles behind Sony Corp.'s Playstation and Nintendo's Gamecube.
"This is how Microsoft gets bigger [in consoles] fast," said Rick Berman, chief operating officer for ATI Technologies that makes graphics chips both for PCs and the next-generation XBox. "This is a shot across Sony's bow," Bergman added.
In a keynote speech, Microsoft executives said the XGA platform will let developers focus more on creating better game content while the Microsoft tools handle software plumbing issues. As much as 80 percent of the work of developing a new game currently focuses on handling hardware-related issues, and developing a new title can cost as much as $20 million, they added.
"This offers the opportunity for breakthrough experiences in gaming. We think we can flip the 80/20 ratio," said J Allard, a vice president of the XBox division at Microsoft.
XGA will include the DirectX API, other audio and graphics tools merged from both PC and console platforms, a common method for addressing input devices that could be used on both platforms and tools for online gaming services. XGA will also include the High Level Shader Language, an emerging C-like language for graphics programming.
XGA will be part of the next major version of Windows, dubbed Longhorn and expected in late 2005. It will also be in the next-generation XBox, expected about the same time. Versions of XGA will begin to emerging in development tools for both platforms soon.
Allard promised XGA would be a stable environment across several product generations, in contrast to the software environment for competitors that often sees radical change between generations.
Microsoft has picked IBM Corp. as a lead semiconductor partner for its next-generation XBox, suggesting a move from the X86 to the PowerPC. However, programmers will be able to write to high-level abstractions in the next-generation XBox, insulating them from that CPU transition, Allard said in an interview.
Top-tier developers who still code to the underlying hardware will still be able to access the processor and graphics chips directly, he added
Automobile MP3 Option Gaining Popularity
Optional MP3 players are becoming popular in the automobile industry. They let people store about 150 songs, making it more convenient than regular CDs that are limited to just 10 to 15 songs.
The 2003 Santa Fe Gold model, which has an MP3 player option, has outstripped sales of the Santa Fe GVS, which does not have the device.
Even though the Gold model price is about W2 million more expensive than the GVS model, higher sales show how effective an MP3 player can be. Although the MP3 player option is irrelevant to the vehicle¡¯s capacity, it is playing a large role in sales.
The person who first came up with the idea of installing an MP3 player in the Santa Fe was Moon Sang-keun, 29, who had only been on the Hyundai Motors domestic production team for two years and four months.
Moon says that he was wondering what functions could be added to the 2004 Santa Fe last summer, when he read several messages on Internet websites, such as Santa Fe Love (www.santafelove.com). ¡°Many of the consumers said that they would want to have an MP3 player installed in their cars, so I came up with the idea,¡± he said.
Although Moon¡¯s team first doubted whether consumers would really like the addition, after conducting consumer surveys, the team found that there were many people willing to buy a car that had an MP3 option.
There were worries that 40-something consumers would not want to buy the car as they might be unfamiliar with MP3 players, but these worries proved to be groundless. ¡°Even consumers who don¡¯t know how to use MP3 players can have their children download songs into the players,¡± Moon said.
(Kim Jong-ho, tellme@chosun.com )
Apple iPod mini now ships globally in July, company confirms
By Karen Haslam
Thursday - March 25, 2004
Apple has confirmed Macworld UK's exclusive report that its new iPod minis will ship later than planned.
UK resellers had told Macworld of their concerns that shortages of the product in the US market would delay Apple's plans to launch iPod mini internationally.
Apple today admitted this was the case, and delayed worldwide availability of the product until July, "due to the much stronger than expected demand in the US".
The company admits that US demand alone "far exceeds" the total planned supply of iPod minis until the end of June.
"Apple expects to ramp up its manufacturing of the iPod mini to meet worldwide demand in the July quarter," the company said.
Apple executive vice president of worldwide sales and operations Tim Cook tried to explain: "The iPod mini is a huge hit with customers in the US and we're sure it will be the same worldwide once we can ramp up our supply in the July quarter.
"The iPod mini adds further momentum to the iPod, which is already the leading digital music player in the world," he added.