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Article from NY Times.

“The DVR rocked the world of television by letting viewers skip commercials and build their own home viewing schedules. Now a handful of Web services and applications are starting to do much the same thing to online publishers.

These tools make it easier for people to read Web articles how, when and where they want, often dispensing with publishers’ carefully arranged layouts and advertisements.

One popular tool, Readability, strips articles to the bare minimum of text and photographs with a single click. But now, Readability wants to give something back to publishers.

On Tuesday, the developers behind the tool will unveil a service that requires a subscription fee of at least $5 a month. The service, also called Readability, plans to distribute 70 percent of that fee to the news outlets and blogs that each subscriber is reading.

For example, if a subscriber is a regular visitor to the gadget blog Gizmodo and the women’s news site The Hairpin over the course of a month, Readability will calculate what percentage of her payment should go to each site and send them checks.

“We were never about stripping ads or being an ad blocker,” said Richard Ziade, who created the original Readability tool as well as the second-generation version. Instead, he said, his team has been wondering: “Can we come up with a mechanism to make the experience of reading on the Web better, but also support content creators and publishers?”

Readability is one of many services experimenting with the future of reading. A wave of applications, including Pulse, Flipboard and My Taptu, are responding to changes in how people prefer to read on the Web, putting articles and blog posts into cleaner or more attractive visual displays.

Nate Weiner, founder of Read It Later, a Web and mobile service that saves articles to be read offline, said there was a larger shift under way, one that mirrors the move to digital from print. Instead of thumbing through the newspaper over breakfast, he said, people like to read articles from many sources on their commutes or in the evening, often using mobile devices.

“People don’t really want to have to be confined to a specific place, time, site or device to read content,” Mr. Weiner said.

Mr. Weiner recently analyzed data from his service, which has three million users, and found that those who owned an iPhone or iPad preferred to save articles for a personalized prime time. IPad reading, in particular, peaks from 8 to 10 p.m.

The glut of updates flowing across the average person’s computer and mobile screens throughout the day, either through social networks or links e-mailed by friends, is also driving the trend.

“If you’re a modern worker, you’re constantly being bombarded with information that you want to read, but that environment is not always the appropriate or best time to read that information,” said Joshua Benton, director of the Nieman Journalism Lab, which is affiliated with Harvard.

Mr. Ziade of Readability acknowledged that there were still many things to be ironed out with the new service, including how often to distribute payments and what happens if publishers refuse to accept the collected money.

The company plans to pay them “regardless of their participation,” he said. Should a site refuse the money, the company is considering options like contributing it to a charity or literacy organization.

Mr. Ziade, who is a partner at a consulting company in Manhattan called Arc90, developed Readability as a pet project in March 2009 and released it online for others to use free of charge; the code is available under an open-source license.

Since then Readability has gained traction among users — and among hardware and software makers. Apple now builds it into its Safari browser, Amazon uses it in the Kindle, and it is built into several mobile applications, including Flipboard, Pulse and Reeder. Mr. Ziade said it was difficult to track how many people were using the tool, but thousands of people visit the Readability home page each day.

Though the original Readability tool will remain free, Mr. Ziade hopes to capture a willing audience by simplifying the so-called micropayment model, which has been much discussed but is tricky to execute.

“Asking someone to pay 45 cents to read an article may not be a big deal, but no one wants to deal with that transaction,” he said. Marco Arment, an adviser to Readability and the creator of Instapaper, a service for saving and reading online articles, made a version of his Instapaper app that will essentially be Readability’s mobile component. Mr. Arment said he thought the most likely customers for Readability’s pay service were “online power readers.”

“It’ll be the types who buy print magazines even though the same articles are online for free, just because they want to support the publication,” he said.

“On the Web, it’s not that people aren’t willing to pay small amounts for things; it’s that there is no easy way to pay,” he added. “If a service like Readability comes along and makes it easy, I think people will be willing to pay.”

Services that put Web articles into new contexts for the convenience of readers have ruffled feathers before. Last June, lawyers for The New York Times Company objected to Pulse, an iPad application that collects and presents articles from many Web sites, in part because of the way it displayed Times articles.

A Times Company spokeswoman, Kristin Mason, said Monday that “as the number of apps in the news space continues to grow, we are monitoring and working closely with many of the developers to discuss any concerns we have.”

But Mr. Ziade said he had not heard a single negative reaction during the several dozen meetings he has had with publishers about his new service. He declined to name the publishers.

Mr. Benton of the Nieman Journalism Lab said that the interest in these services was driving “an increasing realization among publishers that not all customers are created equal, and some will pay for different experiences without advertisements.”

Jacob Weisberg, the editor in chief of the Slate Group, the online publisher owned by the Washington Post Company, said Slate had not talked to Readability but would “be happy to cash their checks.” Mr. Weisberg added that “if the numbers became meaningful, we’d of course want to negotiate” a deal.

Slate has added an Instapaper save-for-later button to its iPad application. Mr. Weisberg said this required a reader to load the original page before saving it.

“We’re still getting the page views and the ad impressions,” he said. “But certainly over time, as these services develop and start making money, it’s only reasonable they share that money with publishers whose content they’re piggybacking on.”

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Article from SF Gate.

“Intel Corp., the world’s biggest chipmaker, said it will spend between $6 billion and $8 billion on U.S. factory upgrades, spurring the creation of 800 to 1,000 manufacturing jobs.

Two plants in Chandler, Ariz., and two in Hillsboro, Ore., will be renovated, and a new research and development facility will be built, Intel said Tuesday in a statement. The plans will also create as many as 8,000 construction jobs, the company said. The initiative will be carried out over “several years,” Intel spokesman Tom Beermann said in an e-mail. The Oregon plant is to open in 2013.

Intel, based in Santa Clara, has manufacturing facilities at three sites in the United States, including New Mexico, as well as in Ireland and Israel. The company is also building its first production facility in China. Intel, which is vying with Samsung Electronics Co. to be the industry’s biggest spender on production, budgeted $5.2 billion for plants and equipment in 2010.

“Today’s announcement reflects the next tranche of the continued advancement of Moore’s Law and a further commitment to invest in the future of Intel and America,” Intel President and CEO Paul Otellini said.

Moore’s Law is Intel co-founder Gordon Moore‘s famous prediction in 1965 that computer chips’ performance will roughly double every two years as manufacturing technology improves and more transistors, or tiny on/off switches, can be crammed onto the chips. The other side of that prediction is that prices will also fall.

Semiconductor companies are locked in a race to shrink the line widths on the circuits that give computer chips their function. Intel’s budget will be spent on so-called 22-nanometer production. A nanometer is one billionth of a meter. Reducing line widths lowers costs and makes products more capable. Modern semiconductor plants cost hundreds of millions of dollars to construct and billions to equip with machinery. They run 24 hours a day, year-round.

Intel rose 2 cents to $19.21 in Nasdaq Stock Market trading. The shares have declined 5.8 percent this year.

The company’s microprocessors run more than 80 percent of the world’s personal computers. Rival Samsung is the biggest maker of memory chips. The two companies compete in the market for memory used in mobile products such as Apple’s iPad and iPhone.

Intel ended the third quarter with more than $20 billion in cash and short-term investments after generating $3.5 billion in cash flow from operations. That cash total doesn’t include the two pending acquisitions it announced in the period – the $7.68 billion purchase of McAfee Inc. and the $1.4 billion deal for Infineon Technologies AG‘s wireless-chip unit.”

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Here is an article from SF Gate.

“Google Inc. executive Mike Steib is courting customers such as Progressive Corp. and touting tools that let marketers create the snazzy, interactive ads that rival Apple Inc. has been using to snatch mobile-ad business.

“We have a significant investment in mobile, and competition is going to push us to be really, really good,” Steib said in an interview the day Google closed its $750 million acquisition of AdMob, which places ads on mobile programs and Web pages.

As Google’s head of mobile advertising, Steib leads the effort to build his company’s next $1 billion business from sales of ads on wireless devices – and lessen its dependence on Web-search ads. With a team based in a former cookie factory in Manhattan’s Chelsea neighborhood, Steib is striving to persuade advertisers they will win over more consumers by working with Mountain View-based Google than with Apple.

“It’s safe to say Google will respond to iAd and respond very strongly,” said Michael Collins, chief executive officer at Joule, a mobile-ad agency that’s part of WPP Plc. “They have too many assets to pull from, too many arrows in their quiver.”

Staying ahead may not be easy, now that Apple is luring advertisers to iAd, a service that places ads inside applications that run on its iPhones and other mobile devices. Apple has sold more than $60 million in advertising on iAd since it was announced in April, CEO Steve Jobs said at a conference Monday. That represents about half of the mobile display-ad market for 2010, according to JPMorgan Chase & Co.

Tension between the companies escalated Wednesday when AdMob accused Apple of barring developers from using Google ad services to create ads for the iPhone – a move that may threaten AdMob’s ability to get revenue from the device.

This year, AdMob and Google together may generate more than $100 million in U.S. mobile-ad sales, according to IDC in Framingham, Mass.

Apple won business as Google awaited a green light from the Federal Trade Commission for its $750 million AdMob acquisition, announced in November, Joule’s Collins said.

Introducing iAd “gave Apple the opportunity to suck all the oxygen out of the room,” he said. “Apple is on a tear these days with the iPhone, iAd, the iPad.”

As sales of smart phones rise, more users are viewing ads on handheld devices in addition to – and sometimes instead of – computers or televisions. Spending on mobile ads in the United States is expected to reach almost $500 million this year, from $220 million in 2009, according to IDC.

In the next three years, as much as one-third of global digital ad spending will be devoted to mobile, according to Alexandre Mars, who oversees mobile ads for Publicis Groupe SA.

“You’re seeing advertisers who see mobile marketing as a significant business driver,” said Steib, who joined Google in 2007 from NBC Universal. “This is a big part of the conversation.”

Google’s strategy includes creating tools that help developers embed videos and make ads more interactive, similar to what Apple’s iAd can do. Google also wants to sell more ads tied to a user’s location and deliver coupons for nearby deals, said Steib, Google’s director of emerging platforms.

The company is keen to make money from delivering coupons for nearby businesses and selling ads alongside a tool that lets customers take photos of an item and search for it on the Web, said Steib.

That way, a bistro could offer free appetizers to a nearby customer who’s searching for a place to eat, and the user could later see where to buy a bottle of the wine paired with dinner. The restaurant and wine seller would pay Google for the ads.

Google and AdMob together had 21 percent of the U.S. mobile ad market in 2009, said IDC analyst Karsten Weide. Quattro Wireless, which Apple acquired in January after losing out on AdMob to Google, had 7 percent.

‘Short-term disruption’

Steib says iAd may create “short-term disruption.” Still, Google can contain the fallout in part because it has experience letting customers manage campaigns on multiple Web sites and it can change ads on the fly based on performance, said Steib, who himself is an avid user of Apple products. He owns about a dozen iPods, iPhones and the new iPad.

Bank of America Corp. went from buying an occasional mobile campaign to paying Phonevalley, the agency run by Publicis’ Mars, a $1 million annual retainer. Google’s AdMob is among the ad-placement companies used by the financial institution, the largest U.S. bank by assets.

“We did take a hard look at iAd and we passed on it,” said Kathryn Condon, a vice president of digital marketing at Bank of America. She said she’s not convinced it will provide more value than AdMob and the other companies the bank uses.”

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Here is a report from SF Gate.

“Apple, long the scrappy but innovative challenger to dominant Microsoft, has passed its rival in market capitalization, becoming the most valued technology company in the world.

The shift in fortunes became official at the close of the stock market Wednesday, when Apple’s market capitalization – the sum of its outstanding shares multiplied by its stock price – finished at $222.07 billion, ahead of Microsoft’s at $219.18 billion.

Though the distinction is merely a milestone, it culminates an amazing turnaround for Apple, which was given up for dead in 1997, when Apple founder Steve Jobs returned as CEO. Apple is now the second most valuable company in the United States after Exxon Mobil.

“This has got to be not only one of the greatest comeback stories, but success stories of the last 20 years,” said analyst Tim Bajarin, president of Creative Strategies. “You see companies coming back from the dead, but not to the point where they achieve this staggering financial position.”

Since September 16, 1997, when Jobs returned as CEO and Apple shares traded at $5.49 per share, the stock has surged 4,346 percent and now trades at $244.11 per share. Over the last five years, Apple’s stock has grown about 600 percent while Microsoft’s managed a modest 5 percent growth.

The shift validates Apple’s strategy of focusing on smart phone and tablet technology, which is on track to eventually outgrow the traditional PC business.

Michael Mace, who worked at Apple for 10 years prior to Jobs’ return, said Apple held the upper hand in the rivalry with Microsoft before being passed in the early 1990s. He said after that point, most employees gave up any hope of rivaling Microsoft financially.

“When a company runs away from you, you usually don’t get a chance to run them back down,” said Mace, a consultant with Rubicon Consulting. “But what Steve (Jobs) has managed to do is produce a series of seminal, meaningful, market-changing products.”

Apple found new life by remaking itself as a mobile company. While it continues to snag more PC market share from Microsoft’s Windows operating system, it is setting the pace of innovation in mobile devices.

Starting with its iPod media players in 2001 and more recently with the iPhone in 2007, Apple has become a leader in building the kind of portable devices that appeal to users. Apple’s iPods command more than 70 percent of the digital-player market, while the iPhone represents a quarter of the smart phones in the United States.

Now, with the iPad tablet selling a million units in its first month, Apple is leading that market as well.

“Apple is sitting on a gigantic business that’s just taking off,” said Leander Kahney, editor of the Cult of Mac blog, who’s written several books on Apple.

Meanwhile, Microsoft has struggled to grow beyond its roots in PC operating systems and applications. Its Zune media player and Windows Mobile operating system are not clicking with consumers. On Tuesday, the company announced a management shakeup in its gadgets and games division.”

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Here is some intriguing new opportunities for iPad developers.

“Venture capital firm Kleiner Perkins Caufield & Byers said Wednesday that it is doubling a fund that focuses on the iPhone and iPod Touch to $200 million to include new applications for the upcoming iPad.

Partner John Doerr said Kleiner Perkins has exhausted its original $100 million iFund that it began two years ago. Now with the iPad coming, he said the application boom that began on the iPhone will extend into a new wave of iPad apps that transforms the way people interact with computers.

“We will move beyond spread sheets, word processors and Web sites limited by a browser to an interactive, connected world with incredible speed and fluidity,” Doerr said during a press event near its headquarters.

The public support from a respected venture capital firm lends more momentum to the launch of the iPad this Saturday and gives developers more incentive to develop dedicated iPad apps. The fund could help seed a new generation of iPad app companies that help define the device much the way early iFund recipients led the way for the iPhone.

The original iFund supported 14 companies, including the well-known Ngmoco, Pinger, Shazam and Booyah. The companies have collectively made more than $100 million and accounted for more than 100 million downloads.

Doerr said those companies have more than 20 iPad specific apps in the works with at least 11 to be released Saturday when the iPad goes on sale.

Many of the iFund companies have had a chance to work with the iPad. Some executives on Wednesday talked about how the device will create more engaging and longer experiences that require more thought and can lead to more profitable and memorable apps.

“We’re really trying to take advantage of the added real estate, and we’re trying to leverage the way users want to use the device,” said Neil Young, CEO and founder of gaming company Ngmoco, which is bringing three new games to the iPad. “The iPad has the opportunity to revolutionize gaming in the home in the same way the iPhone and iPod Touch revolutionized gaming on the go.”

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