Ep. 1332: Steve Jobs pitches a fit

This is -- have the Bernanke's. -- -- And that -- themselves everything lends some Hollywood -- a buzz out loud is cnet's podcast of indeterminate length that it episode thirteen 132. And for the second time in two weeks we're talking earnings calls that we don't usually -- about it and -- -- Google and Apple while a proponent. Her billions of dollars and and -- Steve Jobs breaks in unexpectedly to the earnings call and goes on item Craig -- five minute rant about seven inch tablet -- Google fragmentation and it segmentation and he was it was remarkable. He will -- before we get to that has discovered a little bit of -- -- -- it is important Apple had the blowout quarter of all blowout quarters yet. So they made. They -- fourteen point one million iphones in the quarter -- anything. As a strong quarter it was a strong quarter just you know four point two million iPad it's that are. The -- thing thing though is that while their income is up their profit margin is now. So they're the only -- -- and this is mostly because of the iPad which is an expensive product to produce they don't have a 36%. Profit margins across the board they were hoping to the iPad is used. Depressing their numbers just a little bit. Yet and they had a lot of revenue bit -- and result of their earning college that there shares were down more than eighteen dollars and after hours trading yesterday pretty remarkable after Apple's -- of -- -- -- -- ever it 318 dollars yesterday afternoon I mean don't get me wrong -- you know. Sometimes a Wall Street you cannot do right by them. And this seems to be one of those cases. Because they've they've certainly sold a lot of product and increased their mind share and market share -- But then yes okay so now are tied it at the -- gonna look Bettman. -- -- -- -- Totally unexpectedly. To the call any and take a couple minutes and talk about -- stuff like Android and whatnot and he kind of went on -- -- -- what -- he went on to analyze basically the Android market and its its competitive nature I have the transcript in here but it's gone. I would call a pitch and it any pits a little fit in any basically -- like. And -- it is totally fragmented everybody likes to say that Android is open and Apple's closed. But Android is not open and even if it was open open systems don't always win and then use the most bizarre example while I've not make up please pressure. To -- plays for sure it was an open system that failed. And that's why they went to the more closed Zune model and -- dollars -- -- -- copied idea. But -- it might not to get totally out that plays for sure was at hopelessly DRM crippled system that didn't work properly across they didn't play for she is the and -- analysts think it was so weird to say. Hey Android not open but also be open systems don't always win. We have do we have the audio -- there's this great if this is the tenor of that this is it near the beginnings the 52 seconds into Steve Jobs appearance on the earnings call. Before he really gets mad but let's play this. -- Google characterized Android is open. An Iowa but iPhone as close. We find this a bit disingenuous. And clouding the real difference between our two approaches. The first thing most of us think about when we hear the -- open his window which is available on a variety of device. So. I don't like windows -- that Android is very fragmented do you think of windows is open now it does it -- though that was totally bizarre what it. He he was he was talking for the investors not for the consumers with consumers don't think of windows. Open and in doesn't think of doesn't -- with windows. -- -- -- -- -- -- We can't does not call get on earnings calendar by minute -- of -- -- through the investors and anything -- partly is but he's talking to. The media and the consumers of -- I mean this is like him. You know jump in on top of the platform but that was a weird thing I mean bringing windows -- as open it's like weird that -- nineties to patent terms that might tip of windows are open. And that's about it I mean I think when he in the old days the open versus closed argument with Apple was windows is available -- Across hardware platforms and -- and no -- and it's not in the may be happening means is that in the yes we US when he was talking about vendors. If you want to build a plant if you want to build a product tablet a piece he whatever windows is -- OS that you can put it where we want it open and anybody can develop. Record -- attack in any with -- hardware and I and but so then he dragged the developers entered his -- talking about tweet deck which he called twittered act that they recently launched their app brand or reported that they had to contend with more than a hundred -- different versions of Andhra software. A 244 different -- think that over the total daunting challenge for developers now speaking directly to developers. And and said you know the compare that to. -- I -- where it's super great and wonderful. This cause then tweet -- out under theories behind them. And say did we at any point say it was a nightmare developing on Android error no no we didn't it wasn't. And in fact -- the companies that in their original three tech posts about. Developing render -- -- -- from our perspective it's pretty cool to have our app work and such a wide variety of devices an Android OS variation. What. And bed and we haven't even gotten -- the tablet part. Well I I want it and wrap up this part here because the thing that's that. That L jobs though was that was hammering on over and over again. Was the benefit to everybody of the close contained walled off fans -- concrete barbed wire. -- fencing around the Apple strategy that open systems don't always win. And we believe integrated will -- fragmented every time he is definitely feeling the pressure. While I agree with him on -- in many things about this he's definitely feeling the pressure of Android. March and sales marketshare yet we feeling it varies he scared. Andy Rubin that hooted yeah -- -- yes the leader of Andhra development and Google apparently took to Twitter yesterday also to counter the challenge any -- and a little bit of code it was. It was helpfully translated by content and among others and he basically said -- -- translates to making a directory -- in meander its first code and then building the operating system from scratch -- repent in other words here it here it is. Here's one code snippet -- forty characters or less the -- addicts exercises. The full potential of open source software -- -- it. So I mean it's just unite everyone -- this will both these guys. Both Rubin jobs are I think -- their each other's fumes and they're talking about. Shields -- philosophies and the consumer just wants a product that works right. You know and they're not -- -- -- -- some people are injure I mean there are people who by Andrea because they believe in it. But most people will buy an Android phone just -- because it's available on Verizon or sprint or whatever. Yeah don't let because of choices -- that thing is that the flip side of fragmentation. You know the light side if you will is choice. And that is in fact that's something that something that people have long espoused as something they prefer they want. He also. Did had a cut I -- a surprising rant about tablets he came in talking about seven inch tablets and all of the tablet competition and he said. That. Seven it's tablets are -- -- that people don't want them that the ten inch screen is where at that and that and -- tablets and less than an inch tablet also come. With a little pieces that gave -- you can -- your fingers and make a little -- but that's not what people want them. I agree with him on this point he he said every tablet users also a smart phone user and note tablet can compete with the mobility of -- smart -- -- he said literally the current crop of seven and tablets are going to BD OK. We'll see. Yeah I mean but I don't agree -- you know I think that choice is in fact that because people do want different things and and like different things I think. If you really like the iPad as a multi media enabled the reader. Then a seven inch tablet is actually a really great size because it's a lot more portable a lot more personable and have a lot lighter and easier to read -- personable. -- -- -- -- I get it but what. People are members to -- There was absolutely there isn't an absolutely fascinating kind of declaration of war. In in in some ways like it further declaration of war against Android and then what appeared to be a smackdown. On and the seven -- tablet rumors. I guess they couldn't get the seven inch screens -- definitely definitely expect a -- that really happen. Definitely go we we do have the transcript -- our show -- and it'll be up on her blog later -- generated it was the it was quite. Like the little -- Alfred -- audio is available over the web two years and that there. -- we're gonna -- quick break and when we come back we will continue iPhone on Verizon rumor mongering among other things. First though as you know Apple's event Apple holding an event in San Francisco -- now at a at Cupertino tomorrow that they're calling back to the Mac we -- can be. New power books. The skinny for Mac -- as. And updates and new laptops then and now cult of Mac dot com has what they say is independent confirmation of what many have speculated would happen in new MacBook Air. Right which is desperately news because the old Ares. Under. Powered and overpriced it was cool when it came out it was it was -- -- machine of people bought it because it made him look you know cool yeah like 37. Probably. I thought have to lose all -- CEO those entering at the traffic look I have. I'm just nonchalantly opened up my air here a -- and and -- talk while we were to load up whatever program I think -- that's so slow anyway so the new one we expect that will be a new air that'll be. Cooler -- in. And faster courts and maybe even a smaller 18 -- eleven point six inch netbook ish version which is the price of well could be an interest in student machine. -- -- Doomed that it will be I would hope at this -- that would be significantly cheaper that was can of the big. The big complaints about it where that it worth to you under powered for business travelers -- -- and way too expensive for students but has to be more expensive there iPad for their whole line of -- impenetrable product ping to work. The -- so it. They're probably feel that I doubt it would be a -- machine and that it will still be pretty expensive to that because the plastic in in the white MacBook for a thousand bucks is pretty much they. The be all and -- student machines -- this'll probably be. Cult of Mac actually actually speculated -- will be eleven to fourteen and yet they'll be right over the highest priced yeah -- you can make that clear when. So all they -- an -- we'll we'll have some sort of coverage of that event tomorrow not probably not the -- live. Minute by minute coverage of it because people just like and laptop. -- we'll tell you what they announce tomorrow man -- And the the Verizon compatible iPhone is in advanced stages of testing right now what youth -- saying that. The 32. Unit. May be that's TDMA. And GSM HSP a version that basically one phone to rule them all -- it'll work on all. American networks and probably -- global networks as well. Speculation is also of course this -- -- -- the antenna problems -- -- one new phone for everybody. For an -- -- or I don't pinnacle but. Yeah but it does it does appear that they're close to release the thing to suggest that lets a final hardware that includes the TDMA -- -- the Verizon iPhone is looking. And probably more and more likely. Livni probably not tomorrow but I guess you never now. And then it is an almost like a little pity on -- HP has officially revealed that Palm Pre to move and web -- you actually which is probably been maybe more interesting it it. It's supposed to be -- sleeker sexier machine then the current Palm Pre. Mostly I think that is the important changes -- internal. One gigahertz processor a five megapixel camera and of course the slide out keyboard. Look the same to me but I don't not a. Tree nuts like Intel here let me ask cooler it is the big news about the pre is that -- national slide show of Palm Pre to pictures there is. A splash screen. Where angry -- well I mean you cannot release a mobile product today without putting angry without mocking up something and has an angry birds on it am -- right. Who cares -- here is actually doing a version for upon which they are angry Kurds that you have to do that angry very blanket -- It is it that you -- you are not a legitimate phone platform lets -- anger at the back when I interviewed like Karo and her right the head of mobile services for Nokia. He pulled out and it was like it has angered her -- and you're like -- -- what did you try. You're gonna be -- -- Anyway you know -- -- -- -- also out and added that is interesting especially if they do end up using it. For tablet or other devices in the -- it supports flash it supports flash ten point one -- only for the browser though not in the OS so which is probably enough I guess. And then it you know it's got some of it as text assist which I think is sort of similar to -- in the sense that it it expand the auto correction capability -- mobile home. And it's coming to level -- big deal there's a new kind of mobile office suite. The FaceBook app gets -- -- so. -- more html five support and come to France first. -- and Palm Pre Q it via a mean that -- they were huge difference. -- -- -- -- -- -- -- I can't remember in the first came out and the with all the support everybody really wired to do. -- -- -- and now an hour to click on that we're jaded but I was I was I was -- the F launch the pre and it was so exciting puzzles like. After all these years of -- Slowly diminishing becoming less and less important like c'mon. Though but by the time product actually we had Android. Little home. -- -- In France the -- More news on the FaceBook app breach or at least. That's what it's been -- thanks and he turned. It hasn't been all over the -- -- -- talking about it today that the -- detect that yesterday where. The Wall Street Journal -- investigation and some third party apps are transmitting user data. Without your knowledge obviously. Since then it has become such a big media story that congress. Wants to get involved and do their usual thing where they don't totally understand it but they want -- have a hearing from. Though and but then also. -- leaf which was one of the -- that was kind of criticized -- actually by the journal has come out. In -- commented on the story thing. Especially little bit what was that yesterday which was. Witnesses or refer EU RL problem it's it's a web architecture issue and eight book. -- -- How to deal with it if they -- like another -- nobody's being evil even on wrapping them pretty well -- -- Got the -- wrap up of all the companies that were talked about in the in the journal story and so they. There. Response the story here is -- -- think they're not saying as other people on the web have said that the stories -- wrong. They're saying that. We are not unfairly taking advantage of this structural problem in how Internet -- URLs. And click on a link in -- on a web page work. I think the implications we're taking advantage of -- -- not an unfair way and if FaceBook wants to fix it. They can buy a figure out a way to obvious confiscate the member ID when you click on something but the story. In hindsight in -- for our -- such as we've talked about it has does seem a little bit. Reactionary. And yeah and you are flat -- up residence at at a flat out unfair to it and make it at FaceBook story and that's the only reason that it continues to get the president -- and that the only reason congress' suddenly involved because they like -- Or no the babies the children on FaceBook and it is. Absolutely a problem that can occur with any website that is it that allows third party applications my faith has the exact same. Issue and lie and I think that fact that the campaign mystery -- -- -- Zuckerberg the public. Between a movie and -- and like. Well yeah -- off. I mean I mean FaceBook has more users than anyone else Landers and they have more and more apps exactly so those certainly there the most affected user but to make it like. And their I think they're really making it sound like it that it Facebook's open even wrap legally room. -- but FaceBook still -- FaceBook still has a responsibility to do something about this even if that is structural problem because they are the biggest. They are indirectly through this service is a lot of people one could argue. I have the potential to be victimized and -- FaceBook has enough clout that he can actually change things. And to be clear like someone called today to suggest that maybe weren't there about it enough yesterday that they collection of that third party data. Via -- refer you world is against Facebook's terms of service and when they find out that it's happening they shut down the app and they blocked several apps as a result of the journal string and maybe they're not as aggressive as they could Vienna and not a whole other. The application that the the thing to me that doesn't -- -- FaceBook actually look. As bad as opposed to looking better is that they didn't block these apps until Wall Street Journal reported -- if we don't know what -- -- had I mean The Wall Street Journal article was a little bit of -- hit tab so we don't know what apps they had blocked before that like we don't know why. I mean I have no idea what -- they had been taking. About these apps -- through May be that the -- those particular when they didn't know them that it was happening in and they blocked in the main event like 101000 before -- -- -- -- Yeah. So. And Aaron has is come to an -- Microsoft Ray Ozzie who's been there since 2006 as the chief technical architect. It's not where you start chief software architect is stepping down yes that -- -- -- he's gonna leave that up and replace them this is a really big deal with Ozzie is the guy who came -- kind of fill the intellectual choose that Bill Gates left when he left. He came from he -- -- which was a work group software he was big guy -- -- Lotus Notes. And was a big proponent at Microsoft of the cloud he was the guys that we have to be a cloud. Services company and we have to make -- the change now and if we don't we will die. And over the past couple years Microsoft. By any estimation has become way more Internet savvy cloud based and then they probably would have otherwise -- interest and. The area I think the the Seattle. Not nice. Like they take a really surprising -- which with a his leadership but not well respected among employees in the trenches on he -- -- through. Product that he might you know he never took -- -- project from creation through and made it into something that could mixture of it I was very much. Even his head with a brilliant idea of via via -- literally. And a lot of what he was talking about became product ties that Microsoft -- You know the clouds -- I would argue that you know. Microsoft still really doesn't get the Internet. And is way behind entered just conceptually what Google is doing in with online apps and even enterprise apps and in many ways and in hosting apps. But anyway all this this thinking that he was talking about ended up. Kind of becoming pervasive inside Microsoft and one can argue that it agreement -- -- one apparently they don't it and they're not replacing him not put that thing at they're not replacing this sort of there -- chief software architect position which -- really suggest more than anything. That they have internalize the message of moving things and the that their development is going to be more web based and it's not gonna be all about. And of one guy owning the concept of software them within Microsoft which is you know probably -- it's also though it the latest in kind of a string of executive changes. And Microsoft which which he makes you always makes you wonder. Robbie Bach left as president of an entertainment and by fifty that you lot obviously went on become CEO Nokia. And then now realities and in the unit -- Alton left a couple years ago he was really kind of the windows group mean you really see a lot of old names at Microsoft. Leaving and then you're at and then it you know for good or for ill and I would argue possibly for L one left standing on right and Ballmer. While he may be. One can argue you know his his strength -- this is but he's not Bill Gates and he is not the -- he is not. The guy who was saying the world is moving in this direction technologically he's I think this is how we -- on the -- -- and he may do that well or not but that's his thing he's a general. Yeah I mean -- he -- he's not a president you know it's and he doesn't. Type one doesn't get the feeling from watching Microsoft that he pushes the company in a technological direction Palmer. Yet not at all now know. And I don't know if he can pick up that role I don't think he can I don't know who's going to be that person -- Microsoft but I do think that Microsoft and all big technological platform companies. Needs somebody with a vision. Yeah and they're really -- -- that's true that they lack vision and their very much and electric out in merely insisting that if he were they conduct also -- -- in the -- posted a link to a story. Now put back in the territory content. About how it they executive director of the Symbian foundation. Has left. And left basically as of immediately. Which leaves the future of Symbian development and in quite a bit of many micro apparent -- it was not reverend -- -- enough. Apology is I get the role in the chatroom posted that's or print them up -- indefinite he apparently left for personal reasons he's been steeped in Ximian for a long time. And now. -- being replaced he is being replaced by the organization's CFO but it. Where it's unclear what that might mean for mean -- And as long as we're talking executive -- Okay and Microsoft shuffling even more -- -- we talked about yesterday is funny they announced the day after they announced be leaving. Office 365 because they've run out of numbers. Microsoft is putting this thing up there it's called off -- 365 it's basically office in the cloud for enterprise. On the we've been waiting for yet I had been announced and and noticed -- very small businesses that service is loath expect per user per month. But that includes only the web expert -- -- point out -- six bucks per user Ron -- and Google. -- -- -- -- And in question is an for awhile when when they upgrade easily and -- -- for them again. And elegant couple years that if the it can. They -- unfortunately the world is moving toward subscription stuff I mean where you your gonna eventually gonna be able to use anything. -- it's that it can be free or you're gonna be gained port on your bill every month every year -- lots -- things owning softer anymore you never really was but now that's just even quicken is like. Now saying you're getting a three year license and and upgrade. Yeah. In other Microsoft news -- I cannot update it -- version of windows for cars. There are -- -- -- be at the Detroit auto show or are at an automotive -- are right now in -- announcing the latest release. Of there windows for cars which is what powers again if you've forgotten. Think -- think which is really probably the best in car multimedia -- and -- This will be called windows and that of -- windows embedded automotive seven but the consumer will never see that they'll just be singing -- which is the application on top of that reads your voice and -- music. That Microsoft Office type effect and there evidently in the Nissan leaf and the via 500 as well as in the next generation of and port thing although none of them. Are using this brand new expert now I won't believe this is coming out until I see it's in interior shot of the leaf with angry birds on the content. Then I'll know its operating system and then we now. A disturbing trend continues great -- -- -- -- news.com today has a story about Third World media which is an adult film studio. Which has filed a lawsuit against 15168. Individuals accusing them of pirating one of their movies. We can't name the name of it is not an adult. It's an adult title. But they are also it is similar to what happened when the producers of the Hurt Locker collected a bunch of IP addresses. Those IP addresses are now making their way into the public as the studio files them with the court and they become part of the public record I predict. That and when they go to sue the people who downloaded this. Movie off of BitTorrent that the settling comes a lot faster and ended with her walker. Via possibly. Hit the little if they do say. What separates the copyright the it's firm by indie film studios from those filed by adult film studios -- that being accused of sharing -- -- Can be far more stigma typing and being accused of sharing Hurt -- so where it whereas. In the case of the Hurt Locker IP address is coming out it sort of was like. That's -- surprising privacy -- This revealing an IP addresses could be seen as much more like Xiamen a name and shame -- kind of -- -- really. -- -- so if you well read the story and it if you. More importantly I think of these these cases are continuing right this is this is the trend for studios team to really take their case directly to the courts and and collect this information from -- -- I'm sorry. You need to find a way to obscure IP address that that is -- huge privacy. Invasion because you can not prove apparently -- most cases that that IP address. Terror ties directly to the human who was responsible for -- and eventually is -- apartment. Especially through to my guess they would vote with the growth of net I mean -- you know you're on fairly large home or apartment network them or -- dorm or something forget -- you can't -- by the computer. Or you need to find an ISP that doesn't keep its records because in order for this these lawsuits to work. The the infringed to pass to subpoena the highest -- to match up the IP -- is that it has with the name. And only the ISP has that information. And there are -- out there who will protect you although. Just using one of those is almost the black -- but there are -- he's out there who say look we don't we keep our data for you know. -- -- -- the black -- at that point that it's a legitimate privacy comply with I would rather have one -- frankly if what these people of wrongfully accused based on an IP address that is not actually there's a flat -- definition and I would much rather than it -- protect me from all of. And you just will always worry about it -- Even no matter what the case right or wrong having to defend yourself -- -- that you might have to defend itself against them a bogus subpoena -- and or a lawsuit it's like who wants -- deal to immunize the where the records are gone after we I want to -- the bad -- is I'm sorry I'm just these people will. I'm just the good guys. It off -- not right out today on wired dot com man Alex we got these and assignment. Position so and they did Bjorn borrowed for sending this and in -- wired has attempted to use mathematics. To answer the very important question. Is angry word blue bird. Multiplies math -- with industry now this this story really touched an honor for me because this has been bugging me and I'm not making this up this has been bugging me for awhile for -- -- the bluebird and angry birds. -- hit the button and it separates -- three and seem to do more damage even just the three birds at the same rock N one bird as if it magically multiplies its math and now what the dot has its blog here -- a lame duck -- -- story did and there is charts and graphs and equations I cannot -- even pretend to understand basically showing that when you separate the bluebird. Not only does it increase in -- three times what you'd expect enormous not physics then it increases amassed thirty times. Thirty times which is why the blue birds are in a word. So I thought yes but only if you separate -- -- on separated bluebird is worthless yet. So but the shocker here there's nothing really breaks my heart is that angry birds in the out of at all to the I'm heartbroken. Yeah that's terrible. Anyway great story wired data. On -- I love it. No voice -- today let's move onto the emails video has the first one for -- Case of Greg -- DC says how often. How often that the Google doodle birth date and comes on my attention on my birthday so happy -- great group to protect. Assistant -- you get the special -- Google Google Google doodle and -- -- a hard thing. On the home page and click on the -- You go to your profile page -- animated confetti drifts down the screen has an extra bonus. When you -- -- the competitive bounces up and what it must plan to do one and expected at the oh Prez because it has operated -- But let me help -- in DC. Now I think straight out of people are playing avatar mystic had a good tactic if you really wanna see the special birthday doodling -- that your group in here if it's worth it to see what. That -- cool yeah. Like Steve break in and says in your entire discussion. Of the Cablevision box -- -- neglected to mention the fact that would be withheld fox station. Is a free over the air broadcast channel. The over the top solutions that you discussed extensively are rather unnecessary with the over the air station -- -- in Manhattan effort just a small RC a.'s. Which works very well and receiving over their broadcast. I connected it's my Tivo in conjunction with my Verizon -- subscribe package and if Verizon never black and over the air -- to switch to the live broadcast version of the channel. And keep watching and recording. This Cablevision dispute -- -- in my TV market where fox resides on the very accessible channel five on the dial for flight a -- Cablevision subscribers just get an antenna and watch channel five for pretty. If -- and -- and Manhattan -- residents who work in most places in this market. I mean now people have an antenna so it's definitely an all you have to do it -- you have to do is when he can't get the service that you -- -- pay for. Go -- RadioShack and buy a -- off. -- -- -- -- -- -- We were moving towards an -- where we didn't have ugly rabbit ears and crap on top -- -- now and now we're moving back because fox and Cablevision battles are. Becoming and fortune for the foreseeable future they're going to be more problem -- -- -- -- so we're gonna go around them by coming back to take a stand like this no move your arm and now that they are right -- the Iraqi doctor says I lived in Iraq to a few years back and wanted to chime in on the forgy situation since that seems to be the hot topic. WiMax is fully established in Baghdad. For the past year or so and it's fairly cheap you can get a limited band with around eighty bucks a month or you can by -- with repeat prepaid recharge cards. Without subscription. A lot of people are using it as their primary interests that in Internet service. Through MiFi like devices keep in mind that this happened in the country were they use GP RS and lap two years ago and they skipped edge and 3-D altogether. -- the other end of the spectrum I'm stuck watching -- well on an agonizing 512 kilo bits per second that's right have to make eighty cell line in close by country because that's the best the -- he can provide. Okay. How much I love you guys so -- how do you love with enough to move back to Baghdad in order to get your VOL a full speed connection and Lima a Lima if you loved us. You. Know and this. Less interest -- -- well anyway it's interest its interest in it they are. Skipping a generation that -- and that they can get. It WiMax in Baghdad and -- were only now getting -- -- I love and now I mean in the examples of ways in which are mobile market is screwed up just abound and continued to Xiamen. -- -- -- -- -- -- -- I you can finally tell the story that we talked about today -- -- -- -- -- that cnet.com you would like email us your stories from Baghdad or anywhere. Send -- to -- at cnet.com and get the colony -- excellent fixed Tuesday. 38. That's both CNET music -- it part. Yes I've of.