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  • Apple to Stream Live Paul McCartney Concert to iTunes and Apple TV

    Apple today announced that it will be supporting Paul McCartney's new album release with a special free video stream of a live concert on Thursday, February 9 [iTunes Store]. The concert is not only being streamed via iTunes on Mac and PC, but will also be available directly on users' Apple TVs, signaling new efforts by Apple to increase the utility of its set-top box.
    To celebrate the release of Paul McCartney's latest album — available now — we're streaming his exclusive performance at Capitol Studios on February 9 at 7 p.m. (PST). Watch the concert on iTunes on your computer, or stream it on your TV using your Apple TV — just choose iTunes Live from the Internet menu.
    The Paul McCartney promotion is not Apple's first foray into live streaming via iTunes, as the company has for the past several years hosted an annual concert festival in London. Apple has gradually ramped up its coverage of those concerts to include live video streaming through iTunes and even through an App Store app for the 2011 series.

    While users could redirect the video from that app to an Apple TV via AirPlay, Apple's addition of the iTunes Live experience directly on the Apple TV itself for this Paul McCartney concert demonstrates how the company can deliver exclusive content to users' televisions and perhaps ultimately an Apple-branded television set in an easily-accessible manner.


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  • Apple Brings Lion Internet Recovery to More 2010 Macs
    Apple today released a series of three EFI firmware updates bringing Lion Internet Recovery to the company's Late 2010 MacBook Air, Mid-2010 iMac, and Early 2010 MacBook Pro. Available firmware updates include:

    - MacBook Air EFI Firmware Update 2.3 (2.98 MB):
    This update enables Lion Recovery from an Internet connection on MacBook Air (Late 2010) models and addresses an issue where the system could restart if the power button is pressed immediately after waking from deep sleep.
    - iMac EFI Update 1.8 (3.02 MB):
    This update enables Lion Recovery from an Internet connection on iMac (Mid 2010) models.
    - MacBook Pro EFI Firmware Update 2.6 (3.18 MB):
    This update enables Lion Recovery from an Internet connection on MacBook Pro (Early 2010) models.
    Apple introduced Lion Internet Recovery on new MacBook Air and Mac mini models introduced last July alongside OS X Lion itself. The feature adds a minimal bootable install onto a machine's firmware to allow it to connect the Internet and download the full Lion operating system for installation.


    OS X Lion by default installs a recovery partition on the machine's hard drive for this purpose, but for users who are installing a blank hard drive or whose recovery partition becomes inaccessible, Internet Recovery provides yet another fallback option for Lion installation.

    The company has extended the Lion Internet Recovery feature to a number of older Mac models over time, with the most recent addition coming two weeks ago and adding support for the Mid-2010 versions of the 13-inch MacBook Pro, white MacBook, and Mac mini. One notable exception is the Mac Pro, which has yet to see even the currently-shipping models support Lion Internet Recovery.


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  • Apple Board Has Been "Considering" Dividends and Buybacks Since 2005
    Much has been made of the recent comment by Apple CEO Tim Cook that the Apple board of directors has been "actively discussing" what to do with its enormous cash pile. Some see it as a sign that Apple will soon pay a dividend or initiate a share buyback program -- except Apple's board has been discussing what to do with its cash for nearly 7 years.

    MacRumors went through Seeking Alpha's entire Apple earnings call transcript history to find out what Apple has been saying about the likelihood of a dividend. Between July of 2005 and October of 2010, Apple execs had very little to say about what Apple was going to do with its burgeoning cash pile -- a pile that grew from $7.5 billion to $51 billion over that time.

    July 2005 was the earliest transcript, and the first time an Apple exec said that the board "from time to time" considered its options for the use of Apple's cash. CFO Peter Oppenheimer on July 13, 2005:
    I don’t have a change in our philosophy that I can share with you today. We are maintaining our cash for flexibility to invest in the business and share buyback are considered with the Board from time to time.
    Then-COO Tim Cook used the same phrasing on April 20, 2006:
    Regarding our use of cash, we are continuing to be conservative with the cash, despite some of the investments we made this quarter. We’re wanting to retain it for flexibility to invest in the business. We do discuss with the board from time to time share buyback, but don't have a change in philosophy to discuss with you today.
    Finally, after twelve conference calls during which Apple's cash pile was discussed and the phrase "from time to time" used on six separate occasions, CEO Steve Jobs appeared on October 18, 2010 and laid out a more detailed vision for Apple's investment strategy:
    We strongly believe that one or more very strategic opportunities may come along that we're in a unique position to take advantage of because of our strong cash position. And I think we've demonstrated a really strong track record of being very disciplined with the use of our cash. We don't let it burn a hole in our pocket, we don't allow it to motivate us to do stupid acquisitions.

    And so I think that we'd like to continue to keep our powder dry because we do feel that there are one or more strategic opportunities in the future. That's the biggest reason. And there are other reasons as well that we could go into. But that's the biggest one.
    Newly appointed Apple CEO Tim Cook expanded on Jobs' thoughts a year later, perhaps indicating a more flexible approach to disclosure and Apple's use of cash. October 18, 2011:
    I believe what we're doing with cash, the way we're -- this cash that we do spend we're doing an extremely good job of it and we're very frugal about using it and using it in the right places. That said, I'm not religious about holding cash or not holding it. I'm religious about a lot of things but not that one. And so we will continually ask ourselves what's in Apple's best interest and always do what we believe is in Apple's best interest. And so it's a topic for the board on an ongoing basis, and we'll continue to discuss it.
    With Apple nearing $100 billion in cash, COO Peter Oppenheimer addressed the issue again on January 24 of this year, during the introductory remarks and the Q&A session when he answered four separate questions about cash:
    We have always discussed, internally as a management team and with our board, our cash. We recognize that the cash is growing for all the right reasons and I would characterize our discussions today as active about what makes the most sense to do with the cash balance, but we don't have anything to announce specifically today.

    [...]

    We're examining all uses of our cash balance, what we might do in the supply chain, what we can do from an acquisition perspective and otherwise. Since I don't have any perspective to share with you today, specifically on dividends or buybacks, other than again, we are actively discussing the cash balance. And in the meantime, we're not letting it burn a hole in our pockets.
    Analysts have inquired about Apple's cash plans for more than half a decade, and Apple, as it is wont to do, has said very little of substance. Apple execs have consistently said that they have "nothing to share" and that "it's a topic for the board on an ongoing basis".

    This may be changing, however -- a UBS research report noted that the Apple board's ongoing discussions may be progressing slightly. UBS's Bob Faulkner writes "We ... understand that management has been soliciting the opinions of large shareholders on the subject [of paying a dividend]." If this is true, it is a significant shift in direction for the company.

    That said, Apple has been growing its sales and profits like no other company in the world. Some may feel that, as the adage goes, if it ain't broke, don't fix it. Perhaps the board's ongoing discussions will finally come to some sort of a conclusion, but no one should be surprised if they don't.

    The full list of quotes and links to earnings call transcripts is available. Transcripts courtesy Seeking Alpha.


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  • iPad's Momentum in Restaurants Grows with Buffalo Wild Wings Trial
    Ever since the iPad was introduced two years ago, its potential to revolutionize the restaurant industry has been widely touted, with some restaurants already moving to replace their traditional point-of-sale devices with iPads and companies such as Square seeking to fill that need.

    And while iPads in restaurants have been catching on here and there, the concept could be ripe for major expansion if a pilot program from restaurant chain Buffalo Wild Wings proves worthwhile. As detailed by Computerworld, Buffalo Wild Wings is expanding an initial pilot program at one of its Toronto area locations to a new location in Minneapolis, stocking each table with an iPad to allow customers to place their own orders and browse the Internet.
    "Ultimately, we are trying to use the technology to enhance the customer experience," [Buffalo Wild Wings director of international business Tim Murphy] said in an interview. "People are familiar with iPads, iPhones and Android tablets, so this would enhance that."

    The chain hasn't decided whether to combine purchasing from the device with purely entertainment uses, something it hopes to measure in its tests, Murphy said.
    The iPad project has seen Buffalo Wild Wings partner with HubWorks Interactive, which offers several different mobile ordering platforms for the iPad along with a case that offers security and protection, a kickstand, a credit card reader, and extended power capabilities including AC power or up to 16 hours of battery life. The company sells basic iPad packages for $750 apiece.


    Rather than bolting or tethering the iPads to the tables, Buffalo Wild Wings has opted to equip each device with an RFID chip to serve as a deterrent to theft.

    The report notes that social restaurants such as Buffalo Wild Wings are ideal environments for the iPad, with the restaurants typically catering to larger crowds where at least some members have an interest in staying for extended periods of time and watching sports on the numerous televisions mounted around the dining areas.
    In the first test, while men in a group typically watched a football or hockey game, women in the group would pick up the iPad and launch Facebook, Murphy said. "We have a very captive audience with good sales volume in our restaurants, so we view this iPad as a way for customers to stay connected socially and not have to use their own device."
    Buffalo Wild Wings continues to explore all options for the iPad in its restaurants, considering integration of mobile advertising to help offset costs and discussing the possibility of using camera-equipped iPad models to allow video chatting at tables.


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  • Apple Faces Potential $38 Million Fine in China as $1.6 Billion Lawsuit Over 'iPad' Trademark Proceeds
    iSmashPhone summarizes a pair of reports from China claiming that Apple is facing a potential 240 million yuan ($38 million) fine from governmental authorities over alleged trademark infringement involving the "iPad" name. The fine pales, however, in comparison to the $1.6 billion Proview Technology, which claims to own the name, is seeking to win in a series of lawsuits filed against Apple. Proview is also said to be seeking an apology from Apple and an injunction preventing the company from using the iPad name in China.


    Proview first accused Apple of trademark infringement back in 2010, claiming that it had owned the mark in China since 2000 and seeking a settlement from Apple in the range of $800 million. Apple fired back with its own lawsuit claiming that it did own the "iPad" rights in China after having purchased European rights from Proview's parent company for just $55,000.

    With Proview having filed a 10 billion yuan ($1.6 billion) suit against Apple in the meantime, Apple lost its suit when a court ruled that the Chinese rights had not been included in the purchase because the parent company did not hold the authority to sell them.

    Apple is appealing the December ruling in favor of Proview, and any potential government fines or resolution to Proview's case against Apple appear to be waiting for that case to be resolved.


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