Catching Up: Yahoo, PC Sales, iPhone, UGC, etc.

A few quick links to get caught up before the weekend:

  • A great hit job on Yahoo and its troubles this week (John K.)
  • Asia/Pacific has passed the U.S. market in PC sales for first time (Gartner)
  • Media execs say top threat they face is user-generated content (Accenture)
  • Battery life as reason for no third-party apps at iPhone launch (Blackfriar)
  • iPhone battery life may be better than people think (MacScoop)
  • Why Microsoft should pull the plug on X-box — $21-billion in losses, and no future — but won’t (Roger)
  • RIM blames network outage on an operating system upgrade: “the pretesting of the system routine proved inadequate” (NY Times)
  • Pimco’s Culley calls it a housing “recession” (Bloomberg)


  1. “Media execs say top threat they face is user-generated content (Accenture)” – I would bet that “user-generated commercials” from these guys might disrupt the ad agency next…

  2. Yahoo is a broken company. Semel is going to go and yahoo will eventually be sold, probably to someone like news corp viacom time warner or a big Asian or European media co.
    As far as this “analysis” of the xbox biz. where shall I begin? it’s fascinating that this rear view mirror piece appears almost at the precise inflection point when xbox swings to profitability.
    All msft has done here is vanquished #1 Sony in this market and rendered them an also ran. But the real PEARL here is this weird $21b “Investment” that msft made in xbox. The fact is an investment goes to CAPITAL and he is looking at the income statement. An investment is an asset, no? The only capital msft invested in XBOX biz are for PCs and Servers, and that is Peanuts. The rest is EXPENSED. And unless the IRS suddenly has made an Expense, depreciable, then you can see clearly the absurdity of saying that msft poured $21b of capital down a rat hole. They did not.
    A case can be made that the operating losses are capital losses. But those can be quickly erased when the biz scales to profitabilty, as it is about to do. A good analogue for this business is the cell phone business, which suffered large start up losses, then had a massive shift to profitability that it sustains today.
    msft is building a business here and like many other start-ups, it is suffering operating losses, Something they can well afford to do. The losses in fact act as a tax shield for msfts highly profitable client and server businesses. These losses, however, are about to stop and msft will have to find another loss making tax shield.
    Its not uncommon to see such a backwards looking article at key inflection points and we have exhibit A right here.

  3. buffet, Bach pushed off profitability another year to 2008 and left it open ended.
    And of course, MS can right off the billions in losses, but true profitability would require recouping those losses… which is likely never to happen.

  4. The article says that Asia/Pacific overtook the US to the US market to take the #2 spot. So who then has the #1 spot?

  5. Err. I meant to say:
    The article says that Asia/Pacific overtook the US to take the #2 spot. So who then has the #1 spot?