Explaining Southern California's economy

Meet the new iPad: It's faster and costs a lot

Apple Unveils Updated iPad In San Francisco

Kevork Djansezian/Getty Images

SAN FRANCISCO, CA - MARCH 07: Apple CEO Tim Cook speaks during an Apple product launch event at Yerba Buena Center for the Arts on March 7, 2012 in San Francisco, California. In the first product release following the death of Steve Jobs, Apple Inc. introduced the third version of the iPad and an updated Apple TV. (Photo by Kevork Djansezian/Getty Images)

The much-anticipated Apple iPad event today continues a worrisome trend for the company. The iPhone 4S launched last year, and it's main new feature was the Siri voice-interface. Now the updated iPad arrives — it's unclear whether we can call it the iPad 3, but we will anyway — and the big news is that the 4G version will cost $829, and that the older base iPad 2 will go on sale for $399.

So there's new. But where's the new new? It will have to wait for the true iPad 3. And the iPhone 5. Perhaps.

This is from Reuters:

The newest iPad will be capable of operating on a high-speed 4G "LTE" or Long-Term Evolution network. At speeds roughly 10 times faster than current 3G technology, that may help banish the sometimes shaky video quality of older devices.

Apple is betting a 4G-equipped iPad will tempt more U.S. consumers to pay extra for higher-quality video on the go. That, in turn, should give Verizon Wireless and AT&T Inc a revenue boost, analysts say.

Until now, buyers have been reluctant to shell out extra cash even for iPads with slower 3G connections. The cheaper Wi-Fi-only model - with much more limited Web access - is by far Apple's top-selling one today.

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The Great Tablet Distraction Debate grinds on

Amazon Introduces New Tablet At News Conference In New York

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NEW YORK, NY - SEPTEMBER 28: The new Amazon tablet called the Kindle Fire is displayed on September 28, 2011 in New York City. The Fire, which will be priced at $199, is an expanded version of the company’s Kindle e-reader that has 8GB of storage and WiFi. The Fire gives users access to streaming video, as well as e-books, apps and music, and has a Web browser. In addition to the Fire, Bezos introduced four new Kindles including a Kindle touch model. (Photo by Spencer Platt/Getty Images)

The Atlantic's Alexis Madrigal weighs in, cleverly, on a micro-debate spurred by this New York Times article about how people are too distracted while reading on a tablet — an Apple iPad, an Amazon Kindle Fire — to actually, you know, read.

Madrigal attacks the NYT story at three levels:

•You can just as easily be distracted while reading a book on paper as you can while reading a book in a digital format

•Reality is far more distracting than what's going in that magical little gadget in your hot little hands: "If the e-reader engages you more with the thing in your hand, even though the gadget itself is more distracting, that could be a net distraction win."

•We will evolve into an undistracted, tablet-using species: "Humans respond to the novel technologies they encounter to reshape their experiences of them. If distraction is really bothering all these people, and they really want to read books, then they will find a way to do so."

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Hewlett-Packard tablet reload still won't move the needle

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Former California gubernatorial candidate Meg Whitman was chosen to take over at Hewlett-Packard.

As you may recall, Hewlett-Packard distinguished itself in the tablet market by bringing out the TouchPad at $500 and then having to slash the price to $99 (well, BestBuy slashed the price) a little over the month later. Debacle! And this was with a reasonably nice device that ran WebOS, the superb operating system that HP picked up when it took over Palm.

Now Meg Whitman — she of the ill-fated bid for governor of California, now HP's CEO — has said that HP will introduce another tablet "before the end of this year" (Bloomberg) and that it will run Microsoft's Windows 8 OS...eventually.

Oh, also, there will be Intel chips.

It will be an HP Wintel tablet.

Hooray! What a wonderful plan! But... 

As I've written before, there is no tablet market — there's an iPad market. And the only company that's been able to take a bite out of Apple's dominance is Amazon, which with its Kindle Fire isn't selling a tablet but a tricked-out Kindle (a Kindroid) to use as leverage to get more people to purchase Amazon content.

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Facebook IPO: It's all about the advertising

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Facebook founder and CEO Mark Zuckerberg speaks during a news conference at Facebook headquarters on October 6, 2010 in Palo Alto, California.

This information is all over the place, but I got it from the Globe and Mail:

Facebook generated about $4.3-billion in revenue last year, according to estimates from the research firm eMarketer, with advertising accounting for nearly 90 per cent of that amount. This year, the company should post revenue of nearly $6-billion, eMarketer forecasts.

And one assumes that 90 percent of that $6 billion will also come from advertising. And when Facebook makes $100 billion, many years after its IPO, 90 percent of that will come from advertising.

Does that sound like putting too many eggs in one basket? Maybe. Except that Google is putting more in one basket. It made $37.9 billion 2011 — and 96 percent of that was advertising!

This week, Facebook is expected to file with the Securities and Exchange Commission, for an IPO later this year. So everyone will finally get a look behind the curtain of how the business is run, financed — and where the revenues really come from. But let's be honest. It's all going to depend on advertising, advertising, advertising. This could be a problem for Facebook's long-term growth and profitability because Facebook might have already signed up just about everyone it can. That's a huge audience — and that audience spends LOTS of time on Facebook — but they're not on Facebook for the same reasons they're on Google.

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It's Black Friday versus the eurozone crisis

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Black Friday at Macy's in Manhattan: Shoppers lined up.

Welcome back! I hope everyone had a happy Thanksgiving. In fact, it appears as though many of you did enjoy the holiday — enough to hit the malls in force on Black Friday. According to the LA Times, retail activity was up 16 percent over last year. And the markets are responding: all the major stock indexes have climbed this morning. 

Meanwhile, the neverending eurozone crisis appears to have entered a new phase. We keep waiting for an endgame here, with the likely demise of the euro single currency. But then Germany and France get together to pull the eurozone back from the brink. This dynamic has caused predictable volatility in world markets for months now. But in the U.S., there's at least some improving news, giving markets the chance to rally on their own and somewhat ignore Europe.

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