Watching IT
Microsoft Blues
By ALLAN D. FRANCISCO
July 11, 2012, 10:55am
After the well orchestrated peek-a-boo with the Surface tablet-cum-notebooks a few weeks ago, it’s back to being butchered in and by the media for Microsoft.
This time, it has nothing to do with a product or service created by the software giant, which doesn’t make it less unpalatable for fans, investors, and other stakeholders of Microsoft.
About five years ago, Microsoft bought an online advertising firm at an eye-popping $6.2 billion, or about six Instagram deals. Buying aQuantive was seen as Microsoft’s bold bid to catch up with Google in the online advertising market.
Unfortunately for Steve Ballmer and company, the aQuantive business did not take off as fast as they hoped it would. Now, aside from swallowing another bundle yet of humble pies, Microsoft also had to write down the purchase value, in effect wiping out the acquisition’s value, as well as the company’s profits for the quarter.
Now, Microsoft’s investors must be praying really hard that Skype, which the company bought last year for $8.5 billion, would never turn out to be aQuantive, the sequel.
Micron Buys Elpida
Micron Technology and Elpida Memory are two companies known only to the true geeks and the high-tech industry’s product and design engineers. But don’t let their relative obscurity blind you to the important roles that these manufacturers play in the technology world.
Without these companies, and the dynamic random access memory (DRAM) chips that they make, the computers that you and I rely on will stop running.
Alas, the DRAM market has suffered through cycles of volatile prices, which cause a cyclical pattern of “boom and bust.”
Micron Technology’s acquisition of Elpida Memory, some industry observers hope, will put an end to or, at least, greatly reduce this vicious cycle. DRAM chip manufacturers will gain more control over production capacity, greatly reducing the risk of losing money over unsold inventories.
The market’s big 3 — Samsung Electronics, Micron Technology, and SK Hynix — can better manage their investments in technology and manufacturing plants.
iPad Mini Brings Worries
Just when Apple’s rivals thought they have figured out how to compete with the iPad, along comes the iPad mini.
As rumors about the smaller tablet from Apple purportedly become closer to reality, makers of Android and other non-iOS tablets are losing more sleep. And they’re becoming insomniac not because they are concerned about Apple going against the wishes of its late founder Steve Jobs.
Because if indeed Apple would release a 7-inch version of its bestselling tablet, all the other vendors that are depending on price to compete for the market crumbs might as well say goodbye to their chances of remaining relevant.
iPad mini? It’s curtain time for everyone else.
That’s all for the meantime, folks. Join me again next time as we keep on watching IT.







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