It's Friday, 21st July 2006 and you're listening to the EuroMac Podcast

Hi, This is Don McAllister and welcome to another edition of the EuroMac podcast. No show last week as family commitments meant I needed to take a few days off but now we're back.

For the benefit of any new listeners, The EuroMac Podcast is a free weekly audio podcast which covers news, technology and features connected with Apple and the mac from a European perspective.

SIPphone, Inc., developers of the free Gizmo Project Internet calling software, today announced their "All Calls Free" program. The new program gives active Gizmo Project users unlimited free calling to landlines and mobile phones in 60 countries around the world. People who wish to participate simply download Gizmo Project, sign up for a free account and add their friends, family and business contacts to their Gizmo Project Contact list. Callers can then call their Contacts on their mobile phones, landlines or Gizmo Project for free. There is no cost to sign-up and the program is available to anyone.

To be eligible for All Calls Free, users have to log in to their account and make a call using Gizmo Project to attain "active" status. Thereafter, calls to other active Gizmo Project users in select countries will be free. Active users are those people who regularly use Gizmo Project to make calls to other Gizmo Project users (on a PC) or to any landline or mobile phone. Free Gizmo Project software for Apple Macintosh, Microsoft Windows, Linux and the Nokia 770 Internet Tablet can be downloaded

The program includes countries such as China, the United States, Brazil, Japan, Germany, Thailand, France, the United Kingdom, Italy, South Korea, Spain, Canada, and more. Most European and Asian countries are also included. A full list of countries may be found at

www.gizmoproject.com—allcallsfree.www.gizmoproject.com—download.www.gizmoproject.com—allcallsfree.www.gizmoproject.com—rates.

IInvestment & Buisness News - One could be forgiven for thinking no one likes Microsoft. Such is the venom of some anti-Microsoft journalists, and such is the reverence with which Apple is held by some, that it is as if the nerds of the technology world believe the larger company is a real life evil empire, and that Jedi Master Jobs fights it with only the Force (and a little help from the EU) as his ally.

But news in this morning informs us that in fact Microsoft is the UK's favourite brand.

According to a study from YouGov, Microsoft is top, one place up on the BBC. Also in the top twenty was Google, vying for recognition in our hears and minds alongside Marks and Spencer and Heinz.

It’s a different story in the US, however. According to Harris Interactive, the top brand across the pond is Sony. Dell was second, and Coca-Cola was third. But, stateside, while Apple made it to the top ten, there was no sign of Microsoft.

Other tech icons appearing in the UK line-up included Nokia (12), BT (21), Apple (25), Kodak (27), PlayStation (32), Sky (37), iPod (43), Amazon (53) and eBay (60).

A group of industry experts picked 650 brands from a list of 1,200 on the basis of quality, reliability and distinctiveness. YouGov then asked the public to pick the best 500.

Is this a case of the UK lagging behind the US, or on this occasion, is it the reverse?

—main

Apple Insider have posted a great summary of the Apple Quarterly results.

Apple on Wednesday announced financial results for its fiscal 2006 third quarter ended July 1, 2006, posting revenue of $4.37 billion and a net quarterly profit of $472 million, or $.54 per diluted share. The quarter represents Apple's second highest revenue and earnings totals in the company's history. Some notes from the financial conference call follow:

Apple's Mac business

Overall, Apple experienced the best Mac unit sales in any 13-week quarter of its history.

Apple's Mac business accounted for 55 percent of the company's total quarterly revenue.

Apple sold 529,000 desktops during the quarter and 798,000 notebooks.

The company ended the quarter within its target range of 4- 5 weeks of channel inventory.

Both the Power Mac and Xserve product lines remain on target to transition by the end of year.

75 percent of Mac shipments were Intel-based units.

Apple now sports a total of 7000 Mac distribution points and is conducting some pilot programs to potentially expand that number.

Apple's primary Mac pilot program is with electronics retailer Best Buy. Apple is currently "in a few of their stores," half of which have trained Apple staffers selling products, while half do not. Apple has been "evaluating results" of the program for about 2 months but had nothing to announce during the conference call.

So far, developers have produced over 1200 Universal applications.

According to NPD, Apple's share of US notebook market rose from 6 percent in January to 12 percent in June.

The new MacBook has been "extremely well received."

Although Apple shipped a "significant number" of MacBooks in June, it still exited the quarter with some backlog. However, the company believes it will catch up with demand this quarter, exiting with a supply and demand balance.

Apple's software segment appears to show some weakness both sequentially and year-over-year. However, Apple pointed out that it launched iLife in the previous quarter and Tiger in the year ago quarter, but did not introduce a major software product during the third quarter of 2006.

Boot Camp has been downloaded by a "significant" number of users and customer feedback "very, very good."

Apple sold about 50 percent more notebooks than desktops during the quarter. The company attributes this to notebooks emerging as more compelling PC choices and not a result of Pro users holding out for Intel-based Power Macs.

Apple's iPod business

Apple's iPod business accounted for 45 percent of its total quarterly revenue.

The company ended the quarter within its target range of 4-6 weeks of iPod channel inventory.

Based on the latest data from NPD, iPod holds a 75 percent share of US MP3 market.

The iPod is also the top seller in Canada, Australia, the United Kingdom, France, Spain, Italy and Japan (50 percent).

During the third quarter, Apple got more agressive with iPod marketing outside the US, which helped fuel the aforementioned share gains.

The iTunes Music Store accounts for 85 percent of legal music downloads in the US, according to the latest data from Nielsen SoundScan.

Apple continues to invest "heavily" in its iPod and iTunes engineering, and remains "very excited" about the products forthcoming from those pipelines.

iPod gross margins were up in the June quarter due to a very favorable commodity environment.

Apple's Back-to-School promo did not contribute significantly to Apple's iPod unit sales figure.

Apple's iPod distribution points have increased slightly to over 40,000 due the addition of some "select resellers around the world."

The 6 percent sequential decline in Apple's "other music and related products" segment was a direct result of the 5 percent sequential decrease in iPod shipments.

"We're not sitting around doing nothing," Apple said about the prospect that mobile phones may soon emerge as very capable digital music players and challenge the iPod.

Apple's Retail business

Apple's retail stores combined to sell 216,000 Mac units and generate $715M in revenues during Apple's third quarter, representing yearly growth of 50 percent in units and 29 percent in revenue. Sequentially, the retail segment produced a 40 percent rise in units and a 12 percent increase in revenue.

Apple's retail profits of $29M were fueled by strong customer interest in the company's MacBook and MacBook Pro line of notebook computers.

Apple opened 14 new stores during the quarter, ending with a total of 155 stores.

With an average of 146 stores opening during the quarter, each store accounted for roughly $4.9M in revenues.

Apple's retail stores combined to cater to over 17M customers during quarter.

50 percent of the Mac purchases made at Apple retail stores were made by first-time Mac buyers.

Apple's latest flagship retail store on Fifth Avenue in Manhattan has already seen its 500,000 visitor, making it the company's highest volume retail store.

Apple's Education business

Apple's third fiscal quarter of 2006 was the company's strongest educational quarter in over 10 years, in which the company shipped more Macs to educational customers than it ever had in a single quarter.

Apple's Back-to-School promo (buy qualifying Mac and get a rebate for a free iPod nano) has been very popular with students.

Apple's sales to higher eduction customers grew 31 percent year-over-year.

Other Apple business and segments

Apple Americas accounted for 642,000 Mac sales and $2.188B in revenues. These figures are up 8 percent and 26 percent year-over-year, and 30 percent and 3 percent sequentially.

Apple Europe accounted for 301,000 Mac sales and $899M in revenues. These figures are up 6 percent and 21 percent year-over-year, and down 5 percent and 7 percent sequentially.

Apple Japan accounted for 79,000 Mac sales and $258M in revenues. These figures are up 4 percent and 14 percent year-over-year, and down 4 percent and 17 percent sequentially.

Apple's Asia Pacific (and FileMaker Inc) accounted for 89,000 Mac sales and $310M in revenues. These figures are up 6 percent and 21 percent year-over-year. Sequentially, unit sales rose 35 percent in the Asia Pacific regions but revenues dropped 5 percent.

Apple's "Other Music Related Products and Services" segment accounted for $457M in revenue. The figure represents a 90 percent year-over-year increase but a 6 percent sequential decline.

Apple's "Peripherals and Other Hardware" added $236M in revenue, representing both an 11 percent decrease sequentially and year-over-year.

Apple's "Software, Service and Other Sales" segment accounted for $314M in revenue, a decrease of 9 percent year-over-year and 3 percent sequentially.

The financial side of Q3

Gross margins for the quarter came in at 30.3 percent, a bit higher than expected due to a more favorable mix of direct Mac sales and a very positive commodity environment.

The tax rate came in at just under 29 percent.

The operating margin for the quarter came in at 13 percent.

GAAP operating expenses were about $759M.

Apple saw very strong cash generation during the quarter of $950M to end with $9.2B in cash.

Apple's Direct sales (retail, online, direct to customers, iTunes) increased to 50 percent in Q3, up from 44 percent in Q2.

Apple's next (fourth) fiscal quarter

Apple guided its fourth (September) quarter revenues to fall between $4.5B and $4.6B, with GAAP earnings-per-share of about 43 cents to 46 cents.

Non-cash stock based compensation during the quarter will be about $40M.

GAAP gross margins should come in at 28.4 percent.

GAAP operating expenses are expected to be $785M, including $34 million related to stock-based compensation.

The tax rate for the fourth quarter is expected to be 32 percent.

Apple expects the favorable commodity envoirnment to continue in the fourth quarter, specifically in terms of NAND Flash, displays, and portable hard disks. On the other hand, DRAM prices should be "relatively balanced."

The company expects gross margins to decline due to: a full quarter of the Back-to-School promotion, a higher mix of lower priced products like the MacBook, and price reductions in foreign countries due to the weakness of the US dollar.

Couple of quotes

"We are very pleased to be working with Intel. They have been a great partner for us," said Apple executive vice president Tim Cook.

"We are very confident in the products in our pipeline, and I just don't imagine that creativity at Apple could ever be low," said Apple chief financial officer Peter Oppenheimer.

www.appleinsider.com—article.php

Macnn reports that
Apple founder and CEO Steve Jobs has leapfrogged News Corp mogul Rupert Murdoch, ranking second on the annual MediaGuardian 100 power list, which ranks those with cultural, economic and political influence in the UK.

This year's list was made up from all sectors of the media, including broadcasting, publishing, new media, advertising, marketing and PR: "Our aim is to take a snapshot of the individuals who run or influence the UK media in 2006, a reflection of what they have done over the past 12 months, and what they are likely to achieve over the next year."

The top spot was taken by BBC director general Mark Thompson, while Microsoft's Bill Gates was still in the top 10, despite stepping down from day-to-day operations. Jobs, who ranked number 6 on last's year's survey, is credited with transforming "the way we consume music" for the podcasting phenomenon which brings "a voice to millions of would-be broadcasters around the globe." The selection committee also said he was for "doing the same for television with the launch of the video iPod."

"There is not a media boardroom in the world that Jobs could not walk into," according to one of panellist's who helped select the candidates. "Everyone is trying to second guess what he does next. He is influencing everyone's thinking."

www.macnn.com—jobs.is.no.2.media.mogul

Thompson unveils BBC shakeup for iPod age

Owen Gibson, media correspondent
Thursday July 20, 2006
The Guardian

The BBC director general, Mark Thompson, yesterday unveiled a restructuring package to prepare the corporation for programme delivery on mobile phones, computers and iPods as well as TV and radio. The changes were designed to make the BBC "the most creative organisation in the world" by streamlining decision-making and production, he told staff. "We need a BBC ready for digital, for 360-degree multi-platform content creation."

Under sweeping changes due to be in place by next April, the television department will become BBC Vision, headed by Jana Bennett, and radio will expand to become Audio and Music under Jenny Abramsky.

Acknowledging the central role of technology and marketing in the new media age, Ashley Highfield will lead a new Future Media and Technology division with a budget of £400m, while former Pepsi marketing chief Tim Davie will get a beefed-up role as head of marketing, communications and audiences. BBC Vision will oversee channels such as BBC1 as well as inhouse programme production.

To encourage so-called "360-degree commissioning" across TV, radio, the internet and other devices, the process will be consolidated under four new controllers of Fiction, Entertainment, Knowledge and Children's.

media.guardian.co.uk—0,,1824728,00.html

Karen Haslem of MacWorld files a report that Apple UK's director has revealed that his company is enroling the help of new Apple Premium Resellers to gain ground in parts of the country where Apple will not be opening Apple Stores.

Apple UK MD Mark Rogers explained: "The intention is to get broader coverage of Apple only outlets across cities where we’re not very well covered."

In return for helping Apple move into these less well-served areas, Apple Premium Resellers will get marketing assistance and training from Apple. However to qualify as a Apple Premium Reseller a retailer's location is key. Rogers explained that his company only wishes to give the premium status to stores in more high profile locations. "We are trying to drag some of the guys into more high profile locations. Out of the industrial estates, out of the third floor of buildings, out of the middle of nowhere," he said.

The company has received some criticism from resellers who disagree with this strategy. Computer Warehouse MD Jonathan Cole thinks Apple is wrong to give priority to High Street locations. He explained: "We could not replicate the ease of purchase and facilities that we have at CW on the High Street. At a time where Dixons are retreating from the High Street it is difficult to see how low margin retailing can work with soaring rents."

Read more about what the scheme means to existing Apple Centres and other Mac resellers in this month's issue of Macworld. In shops now.

www.macworld.co.uk—index.cfm

Bobbie Johnson, technology correspondent
Saturday July 15, 2006
The Guardian

A law banning gadgets that let iPod users listen to their music over FM radio is to be overturned, it has been revealed.

The communications regulator, Ofcom, said yesterday that it wanted to lift Britain's ban on the gizmos, which can be used to listen to digital music in cars or around the home.

Devices such as Griffin Technology's iTrip are hugely popular in the US and Europe, but using them is illegal in the UK. Thousands of British consumers already have the devices, however, thanks to a legal loophole that lets the country's retailers sell them.

The gizmos work by allowing car radios or household stereos to tune in to iPod signals and play music, using the same wavelengths as radio stations. Although the devices only broadcast their FM radio signals over distances of a few metres, they were ruled illegal because of fears they would interfere with commercial radio.

Despite the ban, thousands of people use the iTrip or Belkin's TuneCast wireless transmitter to listen to their music on the move. "The iTrip is actually our biggest-selling hardware accessory," said Jonathan Cole, managing director of the iPod retailer PopXpress.com.

"But we're in the strange position where it is legal for us to sell it within the European Union, but customers can only use it in other European countries. I think it's all a bit silly really." Mr Cole said hooking music players up to other devices was one of customers' most common requirements: "We must get 20 people a day in our shops asking how to connect an iPod to their radio or hi-fi."

Ofcom officials said yesterday that the popularity of the devices had led them to reconsider the ban. "Low-power FM radio transmitters for MP3 players are currently unauthorised for use in the UK and parts of Europe because of the potential to cause interference to broadcast services," the regulator said in a statement. "Ofcom is responding to growing consumer demand for the use of these devices and has led negotiations in Europe to develop a harmonised approached to their use."

technology.guardian.co.uk—0,,1821118,00.html

ScreenCastsOnline

Lot's happening over at ScreenCastsOnline this month so bear with me while I bring you a quick summary and if you don't know about SCO it's a weekly video podcast by your's truly delivering mac related tutorials via iTunes or democracy player.

www.screencastsonline.com

The UK Magazine MacFormat is featuring ScreenCastsOnline this month and have included a number of early shows on its DVD cover disk. If you were thinking of becoming an ScreenCastsOnline Extra Member there's a special offer for MacFormat readers to sign up for $20 USD for 6 months instead of the usual $25 USD. Check out the special page at www.screencastsonline.com—macformat.

www.macformat.co.uk

Next weeks show is one I'm really excited about as I've mananged to get a sneak peak at a new unreleased version of a truly amazing piece of software from Elgato - eyeTV2. I'll be reviewing the new eyetv for DTT digital TV recorder which plugs in to your USB port and turns your mac into a personal video recorder. What's really cool is that Elgato have developed a Full Screen menu which emulates and integrates with Front Row so you can access Live TV or Recordings using your Apple Remote. The pre-release version of eyeTV2 software I've been able to get also includes integration of the built in program guide with the Full Screen Menu. You really need to see it to appreciate it.
And as a special treat, there's a competition this week open to everyone and the prize donated by Elgato is a brand new eyeTV for DTT together with a copy of eyeTV2 software. So make sure you're subscribed at least the free version of ScreenCastsOnline to get this weeks show and the comptetition details.

www.elgato.com—index.php

So that's it for this week, If you've got any interesting news on the mac in Europe or you want to promote any events on the Euromac podcast, just drop me a line at euromacpodcast@googlemail.com

Have a great weekend and I'll see you next week for another edition of the EuroMac Podcast.