Friday, June 8, 2007

MIT heralds future of gadgets that can be recharged wirelessly

MIT heralds future of gadgets that can be recharged wirelessly
By Associated Press
Friday, June 8, 2007 - Updated: 12:40 PM EST

CAMBRIDGE, Mass. - In a perfect world, there’d be no wires. They clutter the view, get tangled behind desks and limit how far networks can reach. That’s why the telegraph gave way to the radio. Cell phones unstrung telecommunications. Wi-Fi liberated computer data.
    Now even the last knotty wire that seemed destined to remain - the power cord - could be on its way out.
    Massachusetts Institute of Technology researchers announced Thursday they had made a 60-watt light bulb glow by sending it energy wirelessly, potentially previewing a future in which cell phones and other gadgets get juice without having to be plugged in.
    The breakthrough, disclosed in Science Express, an online publication of the journal Science, is being called "WiTricity" by the scientists.
    The concept of sending power wirelessly isn’t new, but its wide-scale use has been dismissed as inefficient because electromagnetic energy generated by the charging device would radiate in all directions.
    Last fall, though, MIT physics professor Marin Soljacic (pronounced soul-ya-CHEECH) explained how to do the power transfer with specially tuned waves. The key is to get the charging device and a gadget to resonate at the same frequency _ allowing them to efficiently exchange energy.
    It’s similar to how an opera star can break a wine glass that happens to resonate at the same frequency as her voice. In fact, the concept is so basic in physics that inventor Nikola Tesla sought a century ago to build a huge tower on Long Island that would wirelessly beam power along with communications.
    The new step described in Science was that the MIT team put the concept into action. The scientists lit a 60-watt bulb that was 7 feet away from the power-generating appliance.
    "It was quite exciting," Soljacic said. The process is "very reproducible," he added. "We can just go to the lab and do it whenever we want."
    The development raises the prospect that we might eliminate some of the clutter of cables in our ever-more electronic world. Is that necessarily a good thing? Soljacic acknowledged "that it’s far from obvious how crucial people will find this."
    But at least one benefit could be that if devices can get their power through the air, they might not need batteries and their attendant toxic chemicals.
    Before that can happen, the technology has a ways to go.
    The MIT system is about 40 percent to 45 percent efficient _ meaning that most of the energy from the charging device doesn’t make it to the light bulb. Soljacic believes it needs to become twice as efficient to be on par with the old-fashioned way portable gadgets get their batteries charged.
    Also, the copper coils that relay the power are almost 2 feet wide for now _ too big to be feasible for, say, laptops. And the 7-foot range of this wireless handoff could be increased _ presumably so that one charging device could automatically power all the gadgets in a room.
    Soljacic believes all those improvements are within reach. The next step is to fire up more than just light bulbs, perhaps a Roomba robotic vacuum or a laptop.
    The MIT team stresses that the "magnetic coupling" process involved in WiTricity is safe on humans and other living things. And in the initial experiments on the light bulb, nothing bad happened to the cell phones, electronic equipment and credit cards in the room _ though more research on that is needed.
    The harmlessness apparently extends both ways: The researchers noted that putting people and other things between the coils _ even when they block the line of sight _ generally has no effect on the power transfer.
    ___
    On the Net:
    Soljacic’s Web page: http://tinyurl.com/ytz2t3
    

© Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Thursday, June 7, 2007

What Apple TV Costs to Make

What Apple TV Costs to Make

Analyzing and pricing out the components of Apple's new set-top video box reveal uncharacteristically slim profits

When Apple CEO Steve Jobs called Apple TV a "hobby," he wasn't kidding.

By typical Apple standards, the new set-top video box may as well be a hobby given how unprofitable it is in its current form. That's one conclusion you can draw from research firm iSuppli's analysis of the innards of the device, which connects a TV to videos stored on a Mac or Windows computer.

Having taken it apart, iSuppli estimates that the components and materials used to make Apple TV cost $237. Since Apple sells it for $299, that would leave a gross profit of $62, or about 20%, before marketing costs.

Big Departure

That would be a big change from Apple's penchant for gross margins in excess of 50% outside its computer lineup. That's been the usual case with the iPod music player family (see BusinessWeek.com, 9/20/06, "The Skinny on Apple's New Nanos") and appears to be the case with the iPhone, the release of which is now less than four weeks away (see BusinessWeek.com, 1/18/07, "What the iPhone Will Cost to Make").

Apple TV's slimmer-than-usual gross margin is also interesting when set against the fact that Apple plans to book the associated costs and revenue over a two-year period. So for every Apple TV sold, the company will split the revenue into chunks reported over eight quarters, at a rate of $37.375 for each period. Dividing iSuppli's cost calculation similarly, $7.75 of that total will be profit.

"This is certainly a departure for Apple, or at least it's approaching a departure," says Andrew Rassweiler, analyst with iSuppli. "We made some very aggressive assumptions with this device, and by that I mean we assumed low prices on the components." If the costs were much higher, "we'd be looking at a device that Apple was subsidizing," perhaps in hopes of making up the difference with video content deals, Rassweiler says.

Intel Inside

Such a business model would contrast sharply with that of the iPod, for which device sales generate far more profit for Apple than music sold on the iTunes online music service. Notably, last week's announcement by Jobs that Apple would offer videos from Google's (GOOG) YouTube suggests that third-party partnerships might be part of the long-term strategy to boost its profitability.

Analyst Wendy Abramowitz, who covers Apple for Argus Research, says that a lower gross margin on Apple TV probably won't have much effect on Apple's financial picture. "I wouldn't even look for this product to be a substantial part of the revenue base initially," she says. Yet Abramowitz also points out that Apple has warned analysts that overall gross margins will drop somewhat in coming quarters, in part because of new products.

The most expensive component inside the Apple TV, Rassweiler says, is an Intel (INTC) microprocessor iSuppli valued at $40. The chip, he says, is a variant of Intel's mainstream Pentium M for personal computers, but runs at a slower clock speed than the regular M processor, thereby lowering the cost. "If it were one of the mainstream chips Intel is selling Apple now for the Mac, there would be no room left for a profit margin at the $299 retail price," Rassweiler says.

Accompanying that Pentium is a $28 Intel chipset, which connects the main processor to memory and other parts of the device. That brings Intel's material share of Apple TV's cost to $68, or 28% of the total, the biggest of any supplier.

Cheap Chips

The graphics chip is an Nvidia (NVDA) GeForce Go 7300 costing $15. This card gives Apple TV the ability to deliver true high-definition video, suggesting that Apple may offer HD television shows or movies for download in the near future. At present, the video content for Apple TV that's available through iTunes plays at a lower-end flavor of HDTV.

Apple TV's 40-gigabyte hard drive from Fujitsu, Rassweiler says, costs $37. But once Apple starts offering HD content, 40GB of storage capacity will quickly prove insufficient. Intriguingly, Apple appears to be seizing on this reality as an opportunity to boost its profit margin. Last week, the company unveiled a build-to-order option for Apple TV that includes a 160GB hard drive for $399, or $100 more than the basic model (see BusinessWeek.com, 5/31/07, "Higher Hopes for Apple TV"). The 160GB hard drive costs $73, according to iSuppli. The relatively modest price difference between the two drives boosts Apple's profit margin on the higher-capacity model to more than 30%, Rassweiler says.

Other Apple TV suppliers include Broadcom (BRCM), which supplies 802.11n Wi-Fi components costing $19 per unit. Cypress Semiconductor (CY) supplies two chips worth a combined $1.65, and Silicon Storage Technology (SSTI) supplies a $1 microcontroller. The cheapest part? A 75¢ audio chip from Taiwan's RealTek Semiconductor.

Hesseldahl is a reporter for BusinessWeek.com.

 

Tuesday, June 5, 2007

Edwards, Clinton and Obama Describe Journeys of Faith

Edwards, Clinton and Obama Describe Journeys of Faith
  Jun 5, 2007 New York Times  

By Patrick Healy and Michael Luo

WASHINGTON -- One presidential hopeful described how prayer helped him survive his son’s death and his wife’s cancer diagnosis. Another spoke about the Israeli-Palestinian conflict and the role of faith in forgiving those who treat others unjustly. A third said of her husband’s infidelity, “I’m not sure I would have gotten through it without my faith.”

Intimate discussions of politics and religion have long been the province of Republican candidates for public office. But on Monday night, the three leading Democratic presidential hopefuls — former Senator John Edwards and Senators Barack Obama and Hillary Rodham Clinton — opened up at an unusual televised forum about their faiths, the role of prayer in their public and private lives and the ways that religion informs their views on policy and government.

Each is aiming to make historic inroads among evangelical Christians and other committed churchgoers who have up to now been most linked with the Republican base. The candidates appeared eager not just to discuss their policies but also to discuss their personal faith journeys as they spoke, one after another, at George Washington University.

The event was organized by a liberal evangelical group, Sojourners, and televised by CNN.

The participants sought to walk a fine line between appealing to religious voters, while not turning off secular voters, who represent a crucial constituency for them.

Mr. Edwards, who has spoken extensively about poverty in moral terms but has shared little about his faith, demonstrated dexterity with speaking the language of Christian belief.

When asked whether he would be willing to discuss the “biggest sin you’ve ever committed,” Mr. Edwards laughed, paused for a moment and said that the “list is too long.”

“I’d have a very hard time telling you one thing, one specific sin,” he said, drawing applause. “If I’ve had a day in my 54 years that I haven’t sinned multiple times I’d be amazed. We all fall short, which is why we have to ask for forgiveness from the Lord.”

Mr. Edwards recalled growing up in the Southern Baptist Church but admitted that he had strayed as an adult. His faith, however, came “roaring back” in the midst of family crises. First was his son Wade’s death in a car accident, and then came the diagnosis for his wife, Elizabeth, and the recent recurrence of cancer.

“I’ve been through a faith journey in my life,” he said, adding that prayer “played a huge role in my survival” in those difficult moments.

“It’s the Lord who got me through,” he said.

Mrs. Clinton, who appeared comfortable chatting on stage with the CNN interviewer, Soledad O’Brien, and later roaming the stage while addressing the audience, drew the most rounds of applause. There were moments on stage that had an almost confessional quality for her.

Ms. O’Brien noted that Mrs. Clinton had shared relatively little about her faith in public but then carefully broached what has largely been the one issue that has been largely off limits in Mrs. Clinton’s campaign, her husband’s infidelity, asking whether her faith helped her deal with it.

“I’m not sure I would have gotten through it without my faith,” Mrs. Clinton said.

Mrs. Clinton said she took her faith “very seriously and very personally” but went on to say she came from a faith tradition, Methodism, that is “perhaps a little too suspicious of people who wear their faiths on their sleeves.”

She admitted that talking about her faith in public “doesn’t come naturally to me,” saying she often flashed back to “the Pharisees and all of the Sunday school lessons and readings I had as a child.”

She expressed gratitude for close friends and others who she said were praying for her, describing them as “prayer warriors” who “sustained me through a very difficult time.”

“I am very grateful I had a grounding in faith that gave me the courage and the strength to do what I thought was right, regardless of what the world thought,” she said, drawing a rousing round of appreciative applause.

When Ms. O’Brien asked what she asked God for in her prayers, Mrs. Clinton drew laughter from the audience when she said, “Sometimes, I say, ‘Oh Lord, why can’t you help me lose weight.’ ”

Mr. Obama dwelled somewhat more on policy and global concerns than on his personal faith or Scripture, in large part because of the nature of the questions that he faced. But he also found ways to interlace religion and policy.

Asked whether he believed that God took sides in a war, Mr. Obama reached for a famous quotation of Lincoln, about asking whether the nation is on God’s side.

At the same time, he said, it was important to remain “our brother’s keeper, our sister’s keeper” to advance the causes of justice and freedom.

Mr. Obama said he believed that evil existed in the world, noting, ‘I do think when planes crash into building and kill innocents, there’s evil there.” In other times of violence and war, however, he saw just causes like the Civil War and the defeat of fascism and the liberation of Europe.

He also said that his “starting point as president is to restore that sense that we are in this together” and that this commitment rose out of his faith. He promised to build alliances across partisan lines to improve early childhood education, children’s nutrition, workers’ pay and efforts to put criminal offenders on a better path.

“The notion that we take away education programs in prisons, to be tough on crime, makes absolutely no sense,” Mr. Obama said.

The event was the first in recent memory by Democrats that focused explicitly on faith and its values. It highlights how far the party has come since the 2004 presidential election in its efforts to appeal to religious voters and the openings Democrats see if the Republicans nominate a candidate who supports abortion rights and gay rights like Rudolph W. Giuliani or one who would be the first Mormon president, Mitt Romney.

Mara Vanderslice, director of religious outreach for the Kerry-Edwards campaign in 2004, said it would have been almost unimaginable for Democratic candidates to have participated in such an event in 2004.

Ms. Vanderslice recalled how difficult it was to nudge Mr. Kerry to talk about his Roman Catholic faith in a substantive way during the campaign.

“We would never have seen something like this last cycle,” she said.

Friday, June 1, 2007

37signals: Small Is Essential

Thursday, May. 17, 2007

Small Is Essential

At 37signals, a company with just eight employees whose Web-based collaboration software is used by thousands of small businesses, there isn't time to sit around a conference room sipping latte and deconstructing memos. Come to think of it, there isn't even a company conference room. There are just a couple of cubicles, loads of brainpower and three simple goals: make useful business software, make it easy to run, make money selling it. Repeat.

Founder and president Jason Fried, 33, decided early on that he didn't need to be in the shiny valley of Silicon to make cool software. Half his team works out of a plain-vanilla Chicago office that 37signals shares with a design studio. The other four are scattered: Portland, Ore.; Chesapeake, Va.; Caldwell, Idaho; and New York City. This tiny crew, only three of whom graduated from college, has built software that many in the world of Web 2.0 consider the best for small-business collaboration. One of its development tools, Ruby on Rails, is the backbone for dozens of popular websites, such as Shopify, Twitter, 43 Things and Jobster.

Unconventional organization is proving to be one of 37signals' biggest assets. The company creates programs that facilitate teamwork, and it ends up relying on the very same tools it builds. "We are growing in the same way a lot of our customers are, so we build products that we need to run our own business," Fried says. "We just build stuff we want to use. If we need it, they need it."

At the heart of 37signals, named for an attempt to find signs of intelligent life in space, are four pieces of software that help business teams manage projects (see below). Subscribing to the Web-based software costs $12 to $149 a month, depending on the amount of disk space and the number of features you use. The thousands of paying users--Fried won't say exactly how many--provide 37signals with a steady revenue stream. The subscription model minimizes the up-front cost for small businesses and makes software spending more predictable for firms worried about cash flow. The monthly fees include ongoing service and updates.

The 37signals team manages its products remotely, so when a problem pops up, it can be fixed without having to recall software or ask customers to install a patch. And if a new product isn't quite what customers wanted, 37signals can respond immediately. When the company launched Highrise, a contact-management tool, in March, customers pleaded for a specific format for freelancers. Within 36 hours, 37signals expanded its offering. "They implement a mix of what's on their own road map and what people suggest," says subscriber Chris Busse, a Web developer.

Fried admits the 37signals team is stretched thin handling its users' demands. He insists that the bigger a staff gets, the slower it moves. "A lot of teams have problems with overcollaboration," he says. "Too much teamwork, too many cooks in the kitchen, too many people making decisions."

Simplicity is one of 37signals' guiding principles, in programming as well as management. For most technical issues that arise, simple work-arounds will address 95% of the need with 10% of the effort that would be required to cover everything. For example, when designing Writeboard, for collaborative writing, the team wanted to let people track how much a document had changed over time. They pored over Ph.D. theses and complex algorithms. Instead, ace programmer David Hansson worked out a "cheat": software to track the number of characters in each document. The evolving total could be conveyed visually using dots of different sizes. With that clever solution, 37signals reduced what could have been a months-long programming project to a day's work.

To help build Basecamp, Campfire and the company's other core applications, Hansson developed Ruby on Rails. It gives 37signals' software a consistent look: sleek, friendly and without the extraneous bells and whistles that plague much of the bloated software sold by larger companies.

Of course, there is another, somewhat larger company with a pretty good reputation for producing easy-to-use software. Google and its 9,000-plus employees have a growing suite of Web-based software tools called Google Apps that is attracting interest from companies of all sizes. And so far, all of it is free. But Fried is convinced that there is plenty of room in the market for smaller players like 37signals and that people should--and will--pay for tools that benefit their business. "Some people would rather pay $50 for something that works than get something for free that doesn't," says Fried. Critics, though, complain that the monthly costs quickly mount for tools available in more primitive form for free.

37signals isn't shy about dispensing one thing without charge: advice to small-business owners. On the company blog, Signal vs. Noise, Fried shares what he's learned about the art of streamlined teamwork with more than 65,000 readers. First, kill all your meetings; they waste employees' time. "Interruption is the biggest enemy of productivity," he says. "We stay away from each other as much as we can to get more stuff done." Use asynchronous communication and software instead to exchange information, ideas and solutions. Next, dump half your projects to focus on the core of your business. Too much time and effort are wasted on second-tier objectives. Third, let your employees decide when and where to work so they can be both efficient and happy. As long as their fingers are near a keyboard, they could as easily be in Caldwell, Idaho, as in Chicago.

In the eight years since 37signals launched, Fried says he has fended off more than 30 venture capitalists offering to fund his company. He turned them down, Fried says, because he wants to keep control instead of selling out to a larger player, as VC-funded start-ups often do. Last July, though, Jeff Bezos, founder of Amazon, bought a minority share of 37signals with his own money, setting 37signals alongside space travel in the Bezos portfolio. Fried says he was impressed with the Amazon chief's appreciation of 37signals' ethos and felt having Bezos on his team would be helpful if he ever faced obstacles running the company.

Next up for 37signals? Possibly financial software, Fried says. Like other small businesses, his firm now needs tools to manage its own financial success.