IBM losing 200Million $ because of Apple.
<a href="http://www.vnunet.fr/mac/actu/article.htm?numero=9539&date=2002-04-09"; target="_blank">http://www.vnunet.fr/mac/actu/article.htm?numero=9539&date=2002-04-09</a>;
this is a french article, unfortunately it hasn't linked to IBM's profit warning... Anyways, in that profit warning, it is clearly stated that IBM's PPC division is losing 200Million $ on Apple's account. Indeed, only the iBook uses the G3...
The article then goes on to speculate on the various pieces of recent news regarding OSX on x86, which have already been beaten to death here.
However, losing IBM as a partner would be pretty bad for Apple... Moto's ppc div will be up for grab this summer, so Apple will have something to do with all their cash... But this is definitely worrying news.
this is a french article, unfortunately it hasn't linked to IBM's profit warning... Anyways, in that profit warning, it is clearly stated that IBM's PPC division is losing 200Million $ on Apple's account. Indeed, only the iBook uses the G3...
The article then goes on to speculate on the various pieces of recent news regarding OSX on x86, which have already been beaten to death here.
However, losing IBM as a partner would be pretty bad for Apple... Moto's ppc div will be up for grab this summer, so Apple will have something to do with all their cash... But this is definitely worrying news.
Comments
<strong><a href="http://www.vnunet.fr/mac/actu/article.htm?numero=9539&date=2002-04-09"; target="_blank">http://www.vnunet.fr/mac/actu/article.htm?numero=9539&date=2002-04-09</a>;
this is a french article, unfortunately it hasn't linked to IBM's profit warning... Anyways, in that profit warning, it is clearly stated that IBM's PPC division is losing 200Million $ on Apple's account...</strong><hr></blockquote>
Is that really Apple's fault? Maybe they should produce faster G3s that Apple would want to buy. Or better yet, the mythical G5.
<strong><a href="http://www.vnunet.fr/mac/actu/article.htm?numero=9539&date=2002-04-09"; target="_blank">http://www.vnunet.fr/mac/actu/article.htm?numero=9539&date=2002-04-09</a>;
Anyways, in that profit warning, it is clearly stated that IBM's PPC division is losing 200Million $ on Apple's account. Indeed, only the iBook uses the G3...
</strong><hr></blockquote>
It has been speculated that IBM will be the chosen one to produce the G5, at least IBM is the leading candidate. IBM could be spending this money to prepare to manufacture the G5. IBM seems more logical than MOTO right now, since MOTO is concentrating on the embedded market, while IBM still makes super computers and the POWER4 line of processors. So Apple or IBM will license Altivec from MOTO and IBM will make the G5 for Apple. IBM is looking at a SIMD for the Power PC that they will be making for PS3, maybe they are eyeing Altivec 2, and will license it from MOTO. Or maybe Apple will buy Altivec from MOTO after Altivec 2 is finished and ask IBM to include it on a the processors that IBM makes for Apple, and Apple could then make IBM a sweet deal to include Altivec 2 on the processors that they make for PS3. A good marketing move to say that the PS3 uses the same technology that Apple does. Although 200 million is allot to attribute to this, maybe the reporter got some of the facts mixed up, or maybe Apple intends on selling MUCHO G5s ?! which would require IBM to expand their facilities.
Ty
Do you even know how many pots IBM has it's hands in? The G3 is not anywhere near as big as..say their Hard Drive business.
so maybe it's only an amount of money due to the development for the Power4 and hopping the G5
<strong>Apple's business with IBM is so small compared to everything else IBM does it would not have anywhere close to enough impact to generate a warning like IBM gave.
Do you even know how many pots IBM has it's hands in? The G3 is not anywhere near as big as..say their Hard Drive business.</strong><hr></blockquote>
Very true. Most people still think of IBM as a hardware company. In reality, the largest piece of IBM's pie is it's service business. Particulary it's Global Services division. As a now former employee, I can tell you that Apple's PPC business isn't even a blip on their radar. That's not to say they don't profit from it, or even appreciate it. Rather, to put things in perspective, it's small potatos compared to other parts of their business.
When the economy turns sour, the first place to get hit is areas of manufacturing, etc. This is true anywhere. IBM rode the storm because of their large consulting / contracting / outsourcing deals were still bringing in the big bucks. However, eventually, IBM's customers are forced to downsize. As a result of that, the service side eventually takes a hit, but there is a very significant delay before that happens. In my opinion, IBM is just starting to feel that pinch now. Additionally, I'm sure many investors don't see Lou Gerstner stepping down as a good thing. Sam Palmisano may or may not be capable to run the show. One thing is for sure, unlike Lou, Sam is one of the good ol' boys whose spent his whole career at IBM. Some don't see this as a good thing.
The bottom line is, I wouldn't put much credibility in that French web site. Besides the fact that this contradicts everything I've seen (in terms of what would cause profit warnings), the site seems to dabble in rumors, as seen by the reference to OS X on Intel just below the article.
Steve
I have read this profit warning in several other places and I have seen no mention of Apple being blamed by IBM so this site may have taken some artistic liberty in its reporting.
<strong>contrary to popular belief, there is no chicken in them</strong><hr></blockquote>
Outsider, it's hard to tell just reading your post (and without any big smiley in it). Is the above quote true? I'm really curious. I'd never heard that before.
I know McNuggets are nasty, but, if not processed (or whatever) chicken, what are they made from? Or are they "chicken" in the same way that their hamburgers are "beef"?
<strong>Apple's business with IBM is so small compared to everything else IBM does it would not have anywhere close to enough impact to generate a warning like IBM gave.</strong><hr></blockquote>
Nor do many other companies have much of an impact: IBM Semiconductor's #1 customer, by a margin, is IBM.
<strong>Um. How is IBM losing money on Apple? Apple only buys the PowerPCs they need from them. IBM uses the PowerPC for their own projects and other companies use the processors for embedded applications. If they made a part that Apple could use (something with altivec) then maybe apple would buy from them. That's like McDonalds blaming fat people because they don't buy enough chicken McNuggets (contrary to popular belief, there is no chicken in them).</strong><hr></blockquote>
then what are in chicken nuggets? I'm almost affraid to ask
<img src="confused.gif" border="0">
<strong>
then what are in chicken nuggets? I'm almost affraid to ask</strong><hr></blockquote>
From McDonald's own <a href="http://www.dietriot.com/fff/mcd/mcd.html#CHICKEN NUGGETS" target="_blank">website</a>:
[quote]Chicken, water, salt, modified corn starch, sodium phosphates, chicken broth powder (chicken broth, salt, and natural flavoring (chicken source)), seasoning (vegetable oil, extracts of rosemary, mono, di- and triglycerides, lecithin). Battered and breaded with water, enriched bleached wheat flour (niacin, iron, thiamine mononitrate, riboflavin, folic acid), yellow corn flour, bleached wheat flour, modified corn starch, salt, leavening (baking soda, sodium acid pyrophosphate, sodium aluminum phosphate, monocalcium phosphate, calcium lactate), spices, wheat starch, dried whey, corn starch. Batter set in vegetable shortening. Cooked in partially hydrogenated vegetable oils, (may contain partially hydrogenated soybean oil and/or partially hydrogenated corn oil and/or partially hydrogenated canola oil and/or cottonseed oil and/or sunflower oil and/or corn oil). TBHQ and citric acid added to help preserve freshness. Dimethylpolysiloxane added as an anti-foaming agent.<hr></blockquote>
<strong>why do you think its called KFC now? Maybe because there is no "real" chicken in it....</strong><hr></blockquote>
We're so off topic now.
Anyway, I actually know the answer to this question: Kentucky Fried Chicken changed their name to "KFC" because "Fried", in their opinion, didn't sound healthy (enough). In my opinion, nobody expects Kentucky Fried Chicken to be healthy.
Personally I think IBM can go roll over and play dead for all they've done with PPC. IBM won't even use Altivec! WTF, it's a brilliant technology, as Apple and Moto have demonstrated.
About the only shortcoming for Altivec is that Moto could offer better compiler support for it. But Moto still supports altivec far better than comparable technologies are supported on Intel or AMD.
As for IBM developing the G5, no way. The G5 will use Altivec, so we know Moto is bringing it to use. And it is already finished, in final testing phases now.
oil and/or partially hydrogenated corn oil and/or partially hydrogenated canola oil and/or cottonseed oil and/or sunflower oil and/or corn oil). TBHQ and citric acid added to help preserve freshness. <hr></blockquote>
I always suspected that rubbish wasn't fit for human consumption. Dammit, I wouldn't dream of subjecting my dog to that bodily assault! But didn't your forget the obligatory salmonella, clostridium botulinum, staphylococcus, campylobacter, listeria monocytogenes, vibrio parahaemolyticus, bacillus cereus, entero-pathogenic escherichia coli, clostridium perfringens, human snot, chicken sh1t, saliva, sweat, cigarette ash, old bus tickets, earwax...etc etc....
[quote]Dimethylpolysiloxane added as an anti-foaming agent.<hr></blockquote>
Hardly surprising...that lot would get anyone foaming at the mouth.
[ 04-12-2002: Message edited by: Samantha Joanne Ollendale ]</p>