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    Tuesday, February 9, 2010

    Reuters - Google tweaks Gmail to challenge Facebook, Twitter

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    Google tweaks Gmail to challenge Facebook, Twitter

    Tuesday, Feb 09, 2010 8:40PM UTC

    By Alexei Oreskovic

    MOUNTAIN VIEW, California (Reuters) - Google Inc injected social networking features into its popular Web email product as the world's No. 1 search engine seeks to fend off competition from Facebook and Twitter.

    Google introduced a new product dubbed Google Buzz on Tuesday that allows users to quickly share messages, Web links and photos with friends and colleagues directly within Gmail, the company's popular email product.

    And the company unveiled a handful of new products designed to make the new social networking features suited to mobile devices, like smartphones based on Google's Android operating system.

    Google's new social networking technology mimics some of the key features of popular social networking services like Twitter and Facebook, which are increasingly challenging Google for web surfers' online time.

    Gmail is the third most popular Web based email in the world, with 176.5 million unique visitors in December, according to comScore. Microsoft Corp's Windows Live Hotmail and Yahoo Inc's Mail were No. 1 and No. 2, with 369.2 million unique visitors and 303.7 million unique visitors respectively.

    In addition to the Buzz features for Gmail, Google said it is launching a special mobile application for Buzz, as well as weaving Buzz technology into the mobile versions of its flagship Web site and its maps products.

    Google has tried to ride the social networking wave before, launching the Orkut social network in 2004. But while Orkut is big in certain overseas markets, like Brazil, it has failed to attract as many users as social giants like Facebook and MySpace in the United States.

    In building a social network on top of an email product, Google is following in the footsteps of Yahoo, which has taken a similar approach in efforts to keep up with Facebook.

    (Additional reporting by Ian Sherr, editing by Gerald E. McCormick)

    For real-time mobile news, go to - http://usatoday.mlogic.mobi

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    As attitudes shift, marijuana classes roll

    This school doesn't have a problem with students not paying attention.

    "They're paying us to come, and our classes are full," says Jeff Jones, chancellor of the Los Angeles branch of Oaksterdam University, where students learn the business of marijuana from seed to ash.

    Attitudes are changing as 14 states now have laws allowing some form of legal marijuana use with a doctor's recommendation. And with legalization comes a growing cannabis industry.

    In California alone, the medical-marijuana business could be worth as much as $2 billion, says Dale Gieringer, state coordinator for NORML, a marijuana advocacy group. Prices vary widely, but dispensaries have advertised an ounce of dried marijuana for $340 or more.

    "Ten years ago I couldn't get a room full of people to talk about this," Jones says. Now, people from across the country come to learn how to legally grow, distribute and profit with pot, even though it remains illegal under federal law.

    Oaksterdam holds classes in three California cities and is expanding out of state. Students learn about the law and science of marijuana as well as how to lobby local government leaders and how to tamp down the pungent, tell-tale smell of cannabis gardens. Growers often worry about theft, and because of legal uncertainties, there is always the risk of a raid by authorities.

    About 7,000 people have taken classes at Oaksterdam, says Executive Chancellor Dale Sky Clare, who oversees all branches. There are waiting lists to enroll 850 students started courses this semester, and more than 300 have signed up for next semester, she said.

    "It's not just hippies in tie-dye," Clare says.

    Mixed group of students

    Jeff Studdard, a former police officer, was among students at a recent class. Studdard, 46, of Riverside County, said he had been a school district police officer and a Los Angeles County auxiliary sheriff's deputy trained to recognize drug users until a broken back forced him to retire. The pain, even after three surgeries, prompted him to try marijuana.

    "I never smoked pot as an officer," he says, but after the injury, "I know first-hand the benefits." He was hoping to incorporate medical marijuana in a holistic treatment business.

    Kenji Klein, a Ph.D. candidate at the University of California-Irvine, is studying the emerging legal pot market as a basis for his doctoral thesis. "It's interesting to me the way social change and entrepreneurship get linked together," Klein said.

    Many students, worried about legal uncertainties, did not want to be identified.

    "We all like to have fun in this industry, but sometimes people go to jail," says Sarah Diesel, an instructor.

    Oaksterdam University opened in 2007 in Oakland. Its name is part Oakland, part Amsterdam, the Dutch city known for its permissiveness toward pot. Classes are offered in Oakland, Los Angeles and Sebastopol, north of San Francisco. Last year, it expanded to Michigan, where voters passed a medical-marijuana law in 2008.

    On a recent weekend, 55 students in Los Angeles paid $250 each for Marijuana 101, a two-day introductory course.

    They were instructed on key court decisions, how to work in a dispensary, which varieties of cannabis are best for various ailments and how to cultivate a good pot crop.

    Oaksterdam is not the only school of its type. In Michigan, Nick Tennant, 24, opened Med Grow Cannabis College. "Our law is in its infancy," Tennant says. "We've been doing very well. I think there's huge demand."

    'People come from all over'

    Oaksterdam's founder and owner, Richard Lee, is a successful medical marijuana entrepreneur. His Coffeeshop Blue Sky is one of four dispensaries licensed in Oakland. He recently financed most of a $1 million signature-gathering effort for a proposal on California's ballot this fall to fully legalize pot while establishing state and local taxation.

    "It's been amazing, the response," Lee says of his school. "People come in from all over the country."

    Special Agent Casey McEnry of the federal Drug Enforcement Administration, wouldn't comment on the cannabis school but said, "It is not the practice or policy of DEA to target individuals with serious medical conditions who comply with state laws."

    Much of the school's teaching is devoted to helping students operate within the law, while acknowledging that gray areas remain 14 years after California approved the nation's first medical-marijuana law.

    "If you have a grow, don't let anyone know," Diesel warns.

    In a recent Los Angeles class, there were students from states with medical-marijuana laws, such as Colorado and Nevada, and states without, including Arizona, Florida, Minnesota and Texas.

    "Everybody wants to get in

    Monday, February 8, 2010

    CNN - Google analyst: U.S. Internet needs to get faster

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    Google analyst: U.S. Internet needs to get faster


    Google long has been an advocate of a single Web, one that's free of government censorship and barriers to information access.

    That's not the reality in today's world however.

    Governments from China to France put various roadblocks in the information superhighway to serve their interests, filter speech or protect copyrights.

    And high-speed Internet connections haven't reached all corners of the globe -- not even all parts of the United States.

    To learn more about this split between Google's idea of an all-access Web and the reality today, CNN sat down recently with Derek Slater, one of Google's policy analysts.

    Slater declined to comment on Google's negotiations with China. The search engine has threatened to pull out of the country after the Gmail accounts of some human rights activists were hacked. Since this interview, it has been reported that Google is working with the National Security Agency to prevent similar cyberattacks.

    But Slater did offer insights about increasing today's sluggish Internet speeds and why a unified Web can change peoples' lives.

    The following is an edited transcript:

    CNN: What are you expecting from the broadband talks in the United States?

    Slater: Earlier in the year the FCC [Federal Communications Commission] started its proceedings to create a national broadband plan, and in our view that's a great step in the right direction, to make the U.S. once again a leader in broadband.

    The Internet was essentially invented here, but over the years we've fallen further and further behind in speed, deployment, penetration.

    And we think it is essential that there be a national goal to have fast, affordable and open access to the Internet.

    CNN: What aren't we doing that we should be?

    Slater: It's a combination of classical and jazz. So there are certain things that we need to do in order to bring faster connections to all Americans, to make sure there's really, truly universal service, and updating the ways in which we do that.

    But there's also a range of experimentation that's going to have to go into this.

    It's a really difficult challenge to think about how are we going to move not just a step further in terms of the speeds that we're getting today, but a leap further. How are we going to get to 100 megabits per second, a gigabit per second, to homes?

    There is no silver bullet there. Instead, it's going to take encouraging creative solutions. Some of them will come from the public sector, that is, some of them will involve municipalities or governments. Some of them are going to come from the private sector. And some of them are going to be a mix.

    CNN: What are the ideas that Google has submitted to the FCC?

    Slater: One is that community institutions can serve as hubs to improve adoption within communities. Schools, libraries, health care facilities can be local and centralized points where people from the community who aren't familiar with Internet access or don't have access to it can get access, and we can help achieve universal adoption. ...

    One other one that we had talked about was encouraging deployment of multiple strands of fiber to peoples' homes. That's because the biggest cost of broadband is digging up the streets, running cables into peoples' homes and so-on.

    CNN: Zooming back a bit, why is broadband [high-speed Internet] important for the average person?

    Slater: Broadband is the dial tone of the 21st century. It is essential for participation in civil society and political processes. It's also essential infrastructure when it comes to economic growth and innovation, and job creation.

    It's also to this century what the beginning of national highways and the electricity grid was for the 20th century. It's going to be an input into a broad range of economic activities.

    So, as we fall behind, that's also falling behind in our global competitiveness and our global ability to grow our economy and compete as an innovative country.

    That's why this is a national issue, and that's why broadband is different from average consumer goods.

    CNN: Why is an "open Internet" important to the globe, or to developing countries?

    Slater: At this point the benefits of the open Internet are really indisputable.

    We've seen unprecedented innovation come from that. Not just companies like Google, but all sorts, both commercial and not. The net is also essential to free expression and creativity. It's democratizing the ability for everyone to speak and create. It puts a printing press and a megaphone in everyone's hands. That can reach billions of people potentially all over the world.

    That sort of democratization of creativity, of innovation, of free expression, is essential to us all, essential to our economy and our society.

    You can look specifically at the way the Internet today is transforming the way small businesses operate. Through both Google and other platforms they can advertise their businesses, make people aware of what they're doing online, which they couldn't do through traditional media as easily.

    CNN: Are there limits to how much the Internet can improve peoples' lives?

    Slater: Faster broadband is not a cure-all to everything, but we see every day how it is improving our economy and benefiting our society. ...

    I think improving broadband infrastructure can improve peoples' lives in a number of core areas that are important to our society.

    Health care. Improving medical treatment. Imagine if someone in rural Montana could do a medical consultation over the Internet with an expert in New York City. Imagine the same thing if we were talking about a student in Iowa [who] could do a distance learning course with somebody miles away, and in that way could improve education.

    CNN: In watching the first weeks after the earthquake in Haiti, have you thought of any ways tech infrastructure or the Web might be used to help build that country back up?

    Slater: That's a really interesting question, and I don't have a great answer off the top of my head. I've only seen parts of [the news coverage], but it's been amazing to watch all of the sites that have sprung up to get funding to Haiti. ... Google set up a site to help drive funding there. It's amazing how quickly that stuff can just take root and spread quickly throughout our society.

    It reminds me in certain ways of the protests in Iran. It was so quick and easy for people there to start snapping photos and tweeting. And that information diffused and spread throughout the world in a very quick way and a way we've never seen before.

    Friday, February 5, 2010

    Reuters - U.S. teens lose interest in blogging: study

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    U.S. teens lose interest in blogging: study

    Thursday, Feb 04, 2010 9:18PM UTC

    By Dan Whitcomb

    LOS ANGELES (Reuters) - Blogging by teenagers and young adults has dropped by half over the past three years as they turn instead to texting and social networking sites such as Facebook, a new study shows.

    The study released this week by the Pew Internet and American Life project also found that fewer than one in 10 teens were using Twitter, a surprising finding given overall popularity of the micro-blogging site.

    According to the report, only 14 percent of teenagers who use the Internet say they kept an online journal or blog, compared with a peak of 28 percent in 2006 -- and only 8 percent were using Twitter.

    "It was a little bit surprising, although there are definitely explanations given the state of the technological landscape," Pew researcher Aaron Smith told Reuters.

    Smith said the report's authors attributed the decline in blogging to the explosion of social networking sites such as Facebook, which emphasize short status updates over personal journals.

    According to the study, 73 percent of teens who were online used social networking sites.

    He also cited the ubiquity of cell phones. Much of the communication between young people now takes place on mobile devices, which don't lend themselves to long-form writing.

    He said teens may be shying away from Twitter because they see it as designed for celebrities, and because of reluctance to put their thoughts on such a public forum when they can post them to their Facebook page instead.

    "It was somewhat interesting in the sense that teens tend to be the early adopters," Smith said. "They were the first to use social networking and texting. Its certainly unusual compared to what we've seen with other technology."

    Blogging among adults has held steady since 2005, Pew found, but it has dropped among Internet users between the age of 18 and 29 -- while rising in those over 30.

    "Older people are becoming more comfortable with the online environment and young people in the meantime have moved on to social networking and text messaging," Smith said.

    The teen portion of the study was based on a telephone survey of 800 people, aged 12 to 17, that was conducted from June to September of 2009.

    (Editing by Vicki Allen)

    Thursday, January 28, 2010

    Reuters - Oracle claims firm stole its intellectual property

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    Oracle claims firm stole its intellectual property

    Friday, Jan 29, 2010 12:28AM UTC

    SAN FRANCISCO (Reuters) - Oracle Corp has filed a suit against a little known rival that provides low-cost software maintenance services, in a case similar to one that Oracle is fighting against rival SAP AG.

    The lawsuit, filed in U.S. district court in Nevada on Monday, alleges that privately held Rimini Street stole copyrighted material using the online access codes of Oracle customers.

    Rimini Street Chief Executive Seth Ravin denied the allegations, saying in an interview on Thursday that his company had done nothing wrong.

    "We are going to fight this battle," he said. "The specific allegations we are going to be answering vigorously and aggressively when the time comes in court."

    Las Vegas-based Rimini Street sells updates and bug-fixes to Oracle's software for about half of what Oracle charges its customers. Ravin said his company booked about $150 million in business last year.

    The charges are similar to claims that Oracle made in a high-profile lawsuit against SAP's TomorrowNow business unit.

    Oracle alleges that SAP's Texas-based TomorrowNow business unit illegally used customer log-ins to steal copyrighted materials from Oracle's password-protected Web site.

    That case is due to go to trial in San Francisco federal court in November.

    Ravin is a co-founder of TomorrowNow, which SAP bought in January 2005. He founded Rimini Street in September 2005.

    Maintenance services are one of Oracle's core profit generators. That business generated $11.8 billion in its most recent fiscal year, or about half Oracle's total revenue.

    "We are committed to enforcing our intellectual property rights against those who steal or infringe" upon them, Oracle spokeswoman Deborah Hellinger said in a statement.

    (Reporting by Jim Finkle; editing by Carol Bishopric, Gary Hill)

    Reuters - AT&T profit rises 26 percent, plans more spending

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    AT&T profit rises 26 percent, plans more spending

    Thursday, Jan 28, 2010 8:0PM UTC

    By Paul Thomasch and Sinead Carew

    NEW YORK (Reuters) - U.S. consumers' obsession with using smartphones to find restaurants, surf the web and navigate city streets helped propel a 26 percent rise in AT&T's <T.N> quarterly profit -- but at a cost for the operator.

    The strain that wireless devices like smartphones and e-readers have placed on AT&T's network is such that the company announced on Thursday it will increase capital spending by about $2 billion this year, targeting improvements in its wireless service.

    The increase was unveiled as AT&T posted revenue and earnings that largely matched analysts' estimates, although its addition of 2.7 million net subscribers in the fourth quarter was nearly 1 million more than expected.

    Analysts did, however, point out that just 910,000 of those were the highly prized monthly bill-paying customers, compared with bigger rival Verizon Wireless' addition of 1.15 million postpaid users.

    Every new AT&T customer puts more demands on its network. Consumers have complained about service problems in cities such New York and San Francisco, where there are a high proportion of data-hungry iPhone users surfing the web on the go. AT&T is the exclusive U.S. carrier for Apple Inc's <AAPL.O> wildly popular iPhone.

    Given the strain on its network, AT&T's announcement yesterday that it will support Apple's iPad tablet is being viewed as a mixed blessing.

    To that end, AT&T will increase capital spending by up to 10 percent from 2009 to a range of $18 billion to $19 billion. The roughly $2 billion increase includes spending on wireless network capacity and wires connecting mobile towers.

    SLOW ECONOMIC RECOVERY

    The spending boost comes as AT&T, along with rivals like Verizon, complained of a sluggish economy.

    "Looking to 2010 we're modeling a slow recovery in the economy and employment," said Rick Lindner, chief financial officer of AT&T.

    But even in a weak economy consumers appear willing to buy devices like iPhone, which was activated on AT&T's network by 3.1 million customers in the quarter.

    Lindner said the high-profile iPad would come with "very positive" economics for AT&T because it neither has to share service revenue with Apple nor subsidize the price of the device.

    In contrast, AT&T's payment of hefty subsidies for the iPhone has made its profit margins slimmer than some analysts had hoped even as it brings millions of customers to its network.

    AT&T said it would expand wireless margins this year to the low 40 percent range from below 39 percent in the fourth quarter, and it set a long-term goal of margins around 45 percent. Verizon already produces margins in this range.

    While iPad will not hit the market for months, other similar devices are already helping AT&T.

    Analysts said, in fact, that the quarter's subscriber surprise came from the number of customers that AT&T added with wireless links to devices such as Amazon.com Inc's <AMZN.O> Kindle, Sony Corp's <6758.T> Reader Daily Edition, and the Barnes & Noble <BKS.N> Nook. In this "emerging devices" category, AT&T brought about 1 million users aboard.

    Devices such as e-readers are seen bringing in much less monthly revenue per customer than traditional cellphones, but since they are unsubsidized they offer healthy profit margins.

    "I don't want to overstate the value of it, but it's a very high profit margin business," said Piper Jaffray analyst Chris Larsen. "There is very little cost associated with the business -- it might be a low revenue per individual user business, but it's a high margin business."

    AT&T's quarterly earnings rose in line with Wall Street expectations to $3.01 billion, or 51 cents a share, from $2.40 billion, or 41 cents a share, a year ago, when it took charges for staff cuts and investment losses.

    Revenue fell nearly 1 percent to $30.9 billion, which met analyst estimates, according Thomson Reuters I/B/E/S.

    For 2010, AT&T said it would deliver "stable consolidated revenues and stable-to-improved consolidated operating income margins, leading to stable-to-improved earnings per share."

    Its shares were up 3 cents at $25.59 cents on NYSE.

    (Reporting by Paul Thomasch and Sinead Carew; Editing by Derek Caney and Steve Orlofsky)

    Reuters - Startpage launches anonymous Web search service

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    Startpage launches anonymous Web search service

    Thursday, Jan 28, 2010 2:2PM UTC

    By Georgina Prodhan

    LONDON (Reuters) - Search-engine company Startpage launched a service allowing users concerned about privacy to carry out Web searches and click on linked pages without being identified, tracked or recorded.

    Unlike mainstream search engines that gather commercially valuable information about user behavior, privately held Startpage (www.startpage.com) has focused on privacy since 2005.

    Startpage -- also known as Ixquick outside the United States and Britain -- had already offered private searching, but users would leave the company's protection when they clicked on a search result and entered a third-party website.

    The new service offers use of a Startpage proxy that means the user is invisible to all websites, though pages load more slowly since Startpage must first retrieve the contents and then redisplay them.

    "My wake-up call came last year," says Katherine Albrecht, who runs U.S. media relations and marketing for Startpage and who says she noticed Google Inc had installed a program monitoring users who typed in terms indicating they had influenza -- and was sharing the information with the U.S. Center for Disease Control.

    "I had been a privacy advocate for 10 years, but even so I was using Google just like everybody else," she said.

    The chief executive of Google, which dominates the global Web search market, outraged critics last month with comments in a TV interview. "If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place," Eric Schmidt said in a interview on news channel CNBC.

    "The reality is that search engines, including Google, do retain this information for some time," he said. "We are all subject in the United States to the Patriot Act. It is possible that that information could be made available to the authorities."

    In 2006, however, Google was the only major search engine to reject a U.S. Justice Department subpoena to hand over data, saying the demand violated the privacy of users' searches and its own trade secrets.

    Rivals Microsoft Corp and Yahoo Inc complied. Startpage does not keep information about its users on file, so it could not be forced to hand anything over.

    Startpage says it has been profitable for the last five years. It is funded by advertising including sponsored links that are matched to the content of Websites and searches, but not to user profiles.

    Startpage, which was founded in New York and is owned by private Dutch company Surfboard Holding BV, does not publish user numbers but says it had served over 1.2 billion searches as of December 2009.

    It also competes with Infospace's Dogpile, WebCrawler and MetaCrawler in metasearch, or returning results from multiple search engines. It is also exploring ways to offer private email.

    (Editing by David Holmes)

    Sunday, January 24, 2010

    Reuters - China paper slams U.S. for cyber role in Iran unrest

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    China paper slams U.S. for cyber role in Iran unrest

    Sunday, Jan 24, 2010 12:28PM UTC

    By Lucy Hornby

    BEIJING (Reuters) - China's Communist Party mouthpiece on Sunday accused the United States of mounting a cyber army and a "hacker brigade," and of exploiting social media like Twitter or Youtube to foment unrest in Iran.

    The People's Daily accused the United States of controlling the Internet in the name of Internet freedom after Secretary of State Hillary Clinton called for more Internet freedoms in China and elsewhere in a speech on Thursday.

    China on Friday warned that Washington's push against Internet censorship could harm ties.

    "Behind what America calls free speech is naked political scheming. How did the unrest after the Iranian elections come about?" said the editorial, signed by Wang Xiaoyang.

    "It was because online warfare launched by America, via Youtube video and Twitter microblogging, spread rumors, created splits, stirred up, and sowed discord between the followers of conservative reformist factions."

    China has blocked Youtube since March, the anniversary of uprisings in Tibet, and Twitter since June, just before the 20th anniversary of a crackdown on protestors in and near Tiananmen Square. Facebook has been down since early July.

    The People's Daily editorial asked rhetorically if obscene information or activities promoting terrorism would be allowed on the Internet in the U.S.

    "We're afraid that in the eyes of American politicians, only information controlled by America is free information, only news acknowledged by America is free news, only speech approved by America is free speech, and only information flow that suits American interests is free information flow," it said.

    Clinton's speech came shortly after Google revealed a sophisticated hacking attack, and said it might close its google.cn Chinese search engine if it could not find a way to offer a legal, unfiltered search service in China.

    "Everyone with technical knowledge of computers knows that just because a hacker used an IP address in China, the attack was not necessarily launched by a Chinese hacker," Zhou Yonglin, deputy operations director of the National Computer Network Emergency Response Technical Team, said in an interview carried in a number of Chinese newspapers on Sunday.

    Zhou mentioned an outage suffered by Chinese search engine Baidu on January 12 but did not mention that it was attacked by the Iranian Cyber Army, which had previously attacked Twitter, nor that Chinese hackers launched retaliatory attacks on Iranian sites the next day.

    The People's Daily also denounced a May ban on Microsoft's instant messaging services to nations covered by U.S. sanctions, including Cuba, Iran, Syria, Sudan and North Korea, as violating the U.S. stated desire for free information flow.

    (Additional reporting by Li Jiansheng; Editing by Elizabeth Fullerton)

    Friday, January 22, 2010

    Reuters - Tablet launch, earnings mean big week for Apple

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    Tablet launch, earnings mean big week for Apple

    Friday, Jan 22, 2010 10:31PM UTC

    By Gabriel Madway

    SAN FRANCISCO (Reuters) - Few events can steal the thunder from an Apple Inc quarterly earnings day -- an Apple product launch is one of them.

    The company releases quarterly results on Monday, but Wall Street is waiting for Wednesday, when Apple could unveil a new tablet computer that investors hope will be as huge a phenomenon as its iconic iPod and iPhone.

    The week could provide a pair of long-term catalysts for Apple's stock. But the company's shares often sell off right after major launches after months of rumor fuel big expectations.

    Little is known about the device, despite a rabid fan following speculating on everything from the component makers to its shape and form. Industry watchers are bullish. They say Apple's obsession to detail gives the so-called "iSlate" a big edge in a computer category that had been deemed a failure.

    "If Apple is going to design a product, then it's going to be the best design in the marketplace," said Broadpoint Amtech analyst Brian Marshall. "To bet that it's going to be a flop is a bad bet."

    Most analysts have not factored the tablet into estimates for fiscal 2010, but sell-siders have been busy lifting price targets on Apple's stock in the past month.

    To be sure, Apple is setting itself quite a task, one that has frustrated previous attempts: to sell consumers on the value of a device that sits somewhere between a full-sized laptop and a pocket cellphone.

    The device is hyped as a do-everything, go-everywhere touchscreen media gadget that bridges the gap between smartphones, laptops and electronic readers. Magazine, book and newspaper publishers are reportedly talking with Apple about providing material.

    "There's a huge potential long-term story there for Apple," said Atlantic Equities analyst James Cordwell. "Whether they get it right the first time, we'll have to wait and see, but they have a pretty good track record."

    IF THE PRICE IS RIGHT

    Wall Street will pay particular attention to the tablet's price tag. If it is closer to $1,000 than $600, analysts say it will be tougher to convince consumers to buy.

    Apple could offer it under carrier-subsidized plans -- Verizon Wireless is frequently mentioned -- which might help take the bite out of the purchase price.

    Analysts believe Apple will sell 2 million to 5 million tablets in the first year.

    The device could add $1 per share to Apple's non-GAAP earnings in the year, and generate $2.8 billion to $3.5 billion of revenue, with a $700 average selling price, said Cross research analyst Shannon Cross.

    Its Monday earnings run-down will serve as a warm-up for the tablet launch. Strong iPhone sales and continued momentum from its Mac computers should fuel the results.

    Given Apple's recent tradition of shredding Wall Street's estimates, investors will expect nothing less than a strong beat when it reports fiscal first-quarter results. The company is trading at around 27 times forward earnings.

    Apple has bested Wall Street EPS targets by at least 15 percent in the past four quarters, and analyst sentiment on the company is trending upward, according to data compiled by Thomson Reuters StarMine.

    According to StarMine's SmartEstimate, which places more weight on recent forecasts by top-rated analysts, Apple should post EPS of $2.11 a share on revenue of $12.16 billion

    "It really boils down to one point, is their beat big enough?" said Jessup & Lamont analyst Kevin Dede. "If you're long, just ride this one out, but if you're a hedge fund, maybe you want to think twice."

    Apple's shares have risen around 9 percent since mid-December when hype about the tablet quickened, and are trading a few dollars shy of an all-time high. It is now the fourth largest stock on the S&P500 index, outranking the likes of IBM and JPMorgan Chase.

    Some investors will be reluctant to sell shares ahead of the tablet unveiling two days later, Dede said.

    Apple is expected to report earnings of $2.06 a share on revenue of $12.05 billion, according to Thomson Reuters I/B/E/S, with a gross margin of 35.7 percent.

    Marshall, whose estimates are well above consensus, expects Apple to deliver a strong upside surprise.

    "The beat is going to be significant enough that we'll have a material earnings revisions for calendar year 2010," Marshall said.

    The iPhone should provide a boost for Apple in the holiday quarter, particularly internationally, he said. Marshal predicted that iPhone units sold will surpass the 9 million average estimate.

    Analysts target Mac shipments of around 3 million for the quarter. Mac shipments in the United States jumped 31 percent in the quarter, according to research group IDC.

    (Reporting by Gabriel Madway. Editing by Edwin Chan and Robert MacMillan)

    Reuters - EA tees off on Tiger Woods console game in June

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    EA tees off on Tiger Woods console game in June

    Thursday, Jan 21, 2010 4:46PM UTC

    By Ben Klayman

    CHICAGO (Reuters) - Video game publisher Electronic Arts Inc said on Thursday it will introduce the next version of its Tiger Woods console video game in June despite the star golfer's public relations nightmare and decline in popularity following his adultery scandal.

    Tiger Woods PGA Tour 11 introduction will follow an online version launched on Thursday. The console game will be available on the Wii, Xbox 360, PlayStation3 and iPhone platforms, the company said.

    The golf game is one of EA Sports' first online efforts. It signed a sponsor deal with Woods in 1997 and introduced 12 versions of the console game bearing his name. The latest console game had been expected for the summer and is one of the company's best-selling sports products.

    "We didn't form a relationship with him so that he could act as an arm's length endorser," EA Sports President Peter Moore said earlier this month. "Regardless of what's happening in his personal life ... Tiger Woods is still one of the greatest athletes in history."

    Signal Hill Capital analyst Todd Greenwald estimated the EA sells about 2 million units on an annual basis, generating about $80 million in net revenue. EA Sports accounts for about 30 percent of the company's overall revenue.

    However, Greenwald, who has a "hold" rating on EA's stock, said the company has bigger worries than Woods.

    "They're struggling on a number of levels," he said. "They're going through a restructuring, Their cost structure is way too high. They've lowered guidance four or five quarters in a row. And on top of that they don't have the hit titles, at least right now."

    Last week, EA slashed its fiscal 2010 forecast on weak holiday sales in Europe and a shift to its lower-margin distribution business. The publisher of "Madden NFL" and "Need for Speed" had a tough 2009 and cut jobs amid an industry-wide sales slump.

    Several companies that had sponsorship deals with Woods, including AT&T Inc and Accenture PLC, have distanced themselves from the world's No. 1 golfer since he became engulfed in allegations of multiple extramarital affairs after a minor car accident outside his Florida home November 27.

    Woods, believed to be the world's wealthiest athlete, estimated to earn about $100 million a year in endorsement deals before his troubles, confessed on December 11 to "infidelity." He announced he would take an indefinite break from golf to save his marriage to Swedish wife Elin Nordegren.

    Also on Thursday, athletic apparel and footwear maker Nike Inc, which has said it was standing by Woods, acknowledged the golf star's absence would hurt its golf business, which in the past was centered on Woods.

    "Certainly, we don't take the most successful player of this era and subtract it and don't expect a short term impact," Nike Brand President Charlie Denson said in an interview.

    However, Denson, speaking in South Africa ahead of the Soccer World Cup in June, said the company's golf business was not built around Woods alone.

    After the initial free preview, EA said its online Tiger game will be offered through a subscription in early 2010. Since May, the company's EA Sports unit has invited players to use a test version of the game.

    (Reporting by Ben Klayman, additional reporting by Marius Bosch and Serena Chaudhry in Johannesburg; Editing by Derek Caney)

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