AMD To Slash A 10th Of Its Workforce
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Advanced Micro Devices Inc revealed a plan on Thursday to save about $200 million of operating costs in 2012 by cutting 10 percent of its global workforce and streamlining internal business processes.
The layoffs mark the first major move by Chief Executive Rory Read, who took the helm in August to try to galvanize a microprocessor maker that has bled market share to larger rival Intel Corp, while missing out on the mobile device boom.
“It’s not too surprising given the operating background of the new CEO and this is exactly what you’d bring an outsider in to do, but their problems go far deeper right now,” said Alex Gauna, an analyst at JMP Securities.
The layoffs should be completed in 2012′s first quarter, AMD said in a statement. Savings generated could help bankroll research and expansion into areas such as low-power chips, emerging markets and cloud computing next year.
In late September AMD, a distant second to Intel in selling microprocessors that are the brains of PCs, warned of manufacturing problems manufacturing it new 32 nanometer Llano chips as well as older 45 nanometer chips.
Will eBay Cozy Up With Facebook?
October 17, 2011 by admin
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EBay Inc is attempting to strengthen its relationship with social network leader Facebook at a developer conference this week, a person familiar with the e-commerce company said on Tuesday.
EBay will also debut a new online identification service for shoppers named PayPal Access, the source added.
The company expects almost 4,000 people to attend its X.commerce conference in San Francisco on October 12, 13 and 14. The event marks the official launch of the company’s new X.commerce division, which will target e-commerce software developers.
EBay is trying to encourage outside developers to create applications for its e-commerce platforms and is making a particularly strong push in mobile commerce.
At the end of September, Katie Mitic, head of Platform and Mobile Marketing at Facebook, joined eBay’s board of directors, sparking speculation that the two companies were working on new partnerships.
Mitic is scheduled to be one of the keynote speakers at the X.commerce conference on Wednesday. Facebook Platform, which Mitic helps run, is the company’s developer unit, so any new partnership will focus on this area, the person said on condition of anonymity because the plans aren’t public yet.
FCC Warns Against Jammers
October 12, 2011 by admin
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The U.S. Federal Communications Commission has issued warnings to 20 online retailers offeriing illegal mobile phone jammers, GPS jammers, Wi-Fi jammers and other signal jamming devices, the agency said Wednesday.
The sale and use of devices that jam the signals of authorized radio communications are illegal in the U.S., the FCC said in its enforcement action. The agency will “vigorously” prosecute violations going forward, it stated in a press release.
“Our actions should send a strong message to retailers of signal jamming devices that we will not tolerate continued violations of federal law,” Michele Ellison, chief of the FCC’s enforcement bureau, said in a statement. “Jamming devices pose significant risks to public safety and can have unintended and sometimes dangerous consequences for consumers and first responders.”
Jammers, sometimes used in classrooms, theaters and churches, are prohibited because they can prevent individuals from contacting police and fire departments or family members during an emergency, the FCC said. “Use of jamming devices can place you or other people in danger,” the agency said.
Did Google Increase Microsoft’s Ad Rates?
September 29, 2011 by admin
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Google might have increased Microsoft’s ad rates 50 fold, a Bloomberg report says.
Someone familiar with the matter told Bloomberg that the US Federal Trade Commission (FTC) is looking into the rate increase.
It will also be looking into other allegations against Google about advertising as a result of complaints from Microsoft.
This is part of a larger antitrust probe into Google that began earlier this year, the source told Bloomberg.
An antitrust lawyer at Doyle Barlow & Mazard PLLC in Washington, Andre Barlow, told Bloomberg that, if true, the Microsoft allegations could be used to help the FTC build a case showing that Google has abused its power as the owner of the world’s most popular search engine, violating the Sherman Act and other antitrust laws.
He said, “A lot of this conduct, when put together with a firm with market power, could be viewed as a violation” of antitrust laws.
RIM’s Woes Continue
September 23, 2011 by admin
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PlayBook shipments dropped in half for Research In Motion during its second quarter, which also saw revenue continue its steep decline.
RIM shipped just 200,000 PlayBooks in the second quarter, down from 500,000 last quarter, when it started offering the tablet device.
Revenue was US$4.2 billion, hitting the low end of the company’s expectation and down 10 percent from the same quarter last year. Analysts polled by Thomson Financial expected $4.47 billion.
RIM’s net income was $329 million, or $0.63 per share. Adjusted net income was $419 million, or $0.80 per share. Analysts were expecting better: Those polled by Thomson predicted $0.87 per share.
RIM shipped 10.6 million smartphones during the second quarter. In June, RIM warned that the second quarter might be weak because of delays in shipping new phones. The delays meant RIM would miss the back-to-school sales period, negatively impacting sales, it said at the time.
Executives who spoke during a conference call to discuss the results put a positive spin on phone sales, however. The company only began launching phones running the new BlackBerry 7 software within the past few weeks, and so far it’s the “largest and most successful launch in our history,” Mike Lazaridis, co-CEO of RIM, said during the call.
Will HP Temporarily Resurrects The TouchPad?
September 3, 2011 by admin
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Hewlett Packard Co plans to produce “one last run” of TouchPads, days after declaring it will discontinue a line of tablets that failed to challenge Apple Inc’s domination of the booming market.
A day after the chief of HP’s personal devices division told Reuters the TouchPad might get a second lease on life, HP announced a temporary about-face on the gadget after being “pleasantly surprised” by the outsized demand generated by a weekend fire-sale.
HP slashed the price of its tablet to $99 from $399 and $499 the weekend after announcing the TouchPad’s demise on August 18, part of a raft of decisions intended to move HP away from the consumer and focus on enterprise clientele.
That ignited an online frenzy and long lines at retailers as bargain-hunters chased down a gadget that had been on store shelves just six weeks.
“The speed at which it disappeared from inventory has been stunning,” the company said. “We have decided to produce one last run of TouchPads to meet unfulfilled demand.”
HP may lose money on every TouchPad in its final production run. According to IHS iSuppli’s preliminary estimates, the 32GB version carries a bill of materials of $318.
“We don’t know exactly when these units will be available or how many we’ll get, and we can’t promise we’ll have enough for everyone. We do know that it will be at least a few weeks before you can purchase,” HP said in a blogpost.
iPad Expected To Dominate Until 2013
September 1, 2011 by admin
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Apple’s iPad will maintain its dominance of the tablet market through at least 2013, research firm IHS iSuppli said today.
El Segundo, Calif.-based iSuppli bumped up its iPad sales forecast for 2011 from an earlier estimate of 43.7 million to 44.2 million, citing Apple’s ability to solve its supply issues and the blunders by rivals, including Hewlett-Packard.
“Apple has resolved the iPad supply issues,” said Rhoda Alexander, senior manager of tablet and monitor research in an interview today. “It was never a demand problem.”
Earlier this year, Apple struggled to produce enough iPad 2 tablets to meet a surging demand for the new device. Those problems have been addressed, and Alexander said that Apple is in the cat bird’s seat for the second half of the year.
“All the momentum in the media tablet market is with Apple right now,” she said. “The competition can’t seem to field a product with the right combination of hardware, marketing, applications and content to match the iPad.”
iSuppli also boosted its forecast for overall tablet sales this year from 58.9 million to 60 million units, meaning the iPad will account for nearly three-fourths of all tablets sold in 2011.
That dominance will continue through 2013, said Alexander, noting that iSuppli previously expected Apple to fall under the 50% share mark in 2012.
“They’ve taken every lesson they’ve learned with previous products and applied them to the iPad,” said Alexander. “Their whole production process is a marvel to watch.”
Sprint To Debut Cloud Services
August 18, 2011 by admin
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Sprint will introduce cloud services to all sizes of businesses in the fourth quarter, a Sprint executive said on Wednesday.
A Sprint spokeswoman said more details would be announced at a later date, but confirmed the executive’s comments in an interview published Wednesday.
Paget Alves, head of Sprint business markets, said in the interview that Sprint’s offerings to businesses will include selling its network infrastructure as a service available on-demand.
Sprint will also offer software, security apps and Internet hosting.
Verizon and AT&T offer similar services, and Alves was said that the carriers are “in a unique position because our business is centered around the cloud.”
Sprint plans to offer services that rely on the company’s own data center, unlike Verizon, which is using capacity from Terremark, which Verizon purchased for $1.4 billion in January.
China Debuts Apple iPhone Knock-Off
August 17, 2011 by admin
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The latest version of Apple Inc’s popular iPhone has already hit the Chinese market — the counterfeit market that is.
The ‘hiPhone 5′ is selling for as little as 200 yuan ($31) on China’s top e-commerce platform Taobao, which is owned by Alibaba Group.
But one has to pay around 800 yuan for a more “genuine” one, according to some store representatives at a mobile phone market in Shanghai.
“Look at this. It’s not the same as the 300-400 yuan ones,” Shanghai-based daily Metro Express quoted a clerk as saying, pointing to one originally priced at 850 yuan.
The ‘hiPhone 5′ is based on leaked images of the yet-to-be-launched iPhone 5 and is thinner and with less rounded edges than the existing iPhone 4, according to the newspaper. However, it is extremely light, almost like a plastic toy, like most pirated mobile phones, it said.
AMD Not Chasing Smartphone Market
August 15, 2011 by admin
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Advanced Micro Devices is not immediately pursuing opportunities within the smartphone markets as it does not align with the company’s strength in technologies like graphics, an executive said on Monday.
Smartphones are constrained on battery, pixels and screen space, and AMD has other areas it can focus on in order to grow, said Rick Bergman, senior vice president and general manager for AMD’s product group during the Pacific Crest Securities Technology Leadership Forum in Vail, Colorado. The company sees an opportunity to apply its graphics and chip technologies to tablets, where customers are demanding better video and battery life.
“We haven’t announced any plans to go in that handheld space. We’ve got plenty of opportunities… in server, notebook and now tablets, that’s our immediate focus. But if the right circumstances come up and we can see a way to impact the market, we’ll obviously continue to look,” Bergman said.
AMD has faced criticism for not aggressively pursuing the booming smartphone or tablet markets. The company in June rushed to release its first dedicated tablet chip, called the Z-series. The chip is a low-power variant of PC chips based on the Fusion microarchitecture, which includes a graphics processor and CPU on a single chip. Based on the x86 architecture, the chip can help tablets deliver a full PC and graphics experience, the company has said.