July 18, 2008 7:37 AM PDT

Week in review: Yahoo snubs Microsoft--again

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Apple also squeezed in some court time, suing Psystar, the company that for months has been selling the Open Computer, a Mac clone. The suit alleges copyright infringement, induced copyright infringement, breach of contract, and trademark infringement, among other things. It seeks an injunction, damages, Psystar's profits, and a recall of the Open Computers already sold, as well as other remedies.

While it's not a surprise that Apple is suing Pystar, the big shocker is that it took the Mac pioneer so long to sue; Psystar has been selling a desktop computer running Apple's Mac OS since April.

Apple harvest
Things have certainly been looking up lately for Apple, which announces its earnings next week. While Windows still dominates the computer market, Apple's operating system continues to gain market share.

Just released second-quarter market share figures from Gartner show Apple shipments up 38 percent, to 8.5 percent of all units shipped, up from 6.4 percent a year ago. IDC had Apple's gains somewhat lower, at a 7.8 percent share, up from 6.2 percent a year earlier, but the trend is the same.

And then there's the iPhone. Despite the outages, shortages, and related hand-wringing associated with last Friday's iPhone 3G launch and Thursday's release of the iPhone 2.0 firmware, Apple says there were 1 million iPhone 3Gs sold and 10 million downloads from its new App Store in its first weekend of existence.

iPhones are selling so well, in fact, that most AT&T stores ran out of them on Friday, the first day the devices were for sale.

Since AT&T doesn't have any in stock, its individual stores are taking "direct fulfillment" orders, which means that customers can put in an order, pay for a phone, and be contacted when it arrives. Most of the 50 stores said that process is running between 10 and 21 days.

Earn or burn
Earnings season is upon us again, and the big news came from Advanced Micro Devices CEO Hector Ruiz, who announced that he was stepping down from the helm of the troubled chip company and that Dirk Meyer was taking over. Ruiz will remain as executive chairman, but Meyer immediately took over as the sole executive leader of AMD.

The leadership change was announced along with the release of AMD's second-quarter earnings and news that it is getting out of the handheld and digital-television businesses. As has been the case for the last several quarters, AMD is continuing to lose bucket loads of money: $1.2 billion this time around.

For Google, apparently, a 35 percent year-over-year increase wasn't good enough for shareholders. Google reported net income of $1.25 billion, but earnings per share, excluding various items, were $4.63 per share, short of the $4.74 expected by analysts.

In after-hours trading, the stock dropped as much as $60, or more than 11 percent. However, the stock recovered somewhat, down $46.31, or 9 percent.

Another victim of expectations was Microsoft, which saw stronger sales of Windows last quarter. But weaker-than-expected results from online advertising and the Office units led earnings to come in a penny per share below analysts' estimates. Microsoft also issued an outlook for the current quarter that fell short of what some analysts were projecting.

The situationlooked a lot better over at Intel and IBM. Intel's second-quarter earnings per share soared to 28 cents from 22 cents during the same period a year earlier. Intel posted $9.47 billion in revenue, up from $8.68 billion. In after-hours trading, Intel shares were jumping on the strength of the forecast of between $10 billion to $10.6 billion in sales.

Big Blue, meanwhile, reported that its revenue climbed 13 percent year over year, to $26.8 billion. CEO Sam Palmisano called the quarter "outstanding," demonstrating that IBM's diversified product portfolio can sell in both established and emerging markets.

Annex Research financial analyst and IBM tracker Bob Djurdjevic followed, noting that IBM's quarter allays concerns that the IT sector will follow the poor stock performance of financial stocks: "Big Blue is firing on all cylinders. Wall Street doomsayers and recession buzzards had better look for trouble outside the IT industry."

Also of note
Microsoft cut the price of its best-selling Xbox 360 Pro model game console with a 20GB hard drive from $349 to $299. A new Xbox 360 model has a 60GB hard drive...Microsoft also announced upcoming support for movie rental service Netflix as part of its system software update for the Xbox 360...Photobucket fixed a security hole that allowed people to view private photos of strangers, while Facebook fixed a hole that exposed the birth dates of members during a public beta of a new design for profile pages.

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Yahoo: "[http://...|http://...] we will sell the entire company to Microsoft for $33 per share or more [http://...|http://...]". CNET title: "Yahoo snubs Microsoft--again". 'Nuff said.
Posted by Fil0403 (1303 comments )
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It's obvious that Psystar isn't a European manufacturer. If it had been the EU would be all up in arms over Apple's monopoly in the "Mac Platform" category. Yes I know what copyrights are, but this "inconvenience" doesn't seem to bother the EU.
Posted by Jim Harmon (329 comments )
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