Gates cautions Apple on iPod success
Microsoft Corp. co-founder Bill Gates says Apple Computer Inc. shouldn’t get too comfortable atop the portable music playing world.
“I don’t think the success of the iPod can continue in the long term, however good Apple may be,” the chairman of Microsoft, the world’s biggest maker of computer software, was quoted as telling German daily Frankfurter Allgemeine Zeitung in an interview published Thursday.
“I think you can draw parallels here with the computer – here, too, Apple was once extremely strong with its Macintosh and graphic user interface, like with the iPod today, and then lost its position.”
The iPod is one of the world’s most popular portable digital music players, with more than 15 million sold since they were introduced.
But makers of mobile phones are targeting the device – unveiling models that feature not only phones, but onboard music players so users can download their music from services directly to their phones.
Both Sony Ericsson and Nokia have models, and more are being made by others, including Samsung and Motorola, which is working with Apple directly.
Software distributor moving to Spokane Valley
TAB Distribution, a distributor of software products and solar panels, has announced it is moving its operations from Southern California to Spokane Valley.
Based in Lake Forest, Calif., the company said in a press release that it chose Spokane in large part to cut operating costs and enjoy the region’s quality of life.
The Spokane Area Economic Development Council announced the move. The group provided assistance to the company in making its selection.
TAB Distribution, a privately held company, has begun moving nine workers to its new location in the Chimney Rock Industrial Park, 3200 E. Trent. The move will be complete at the end of May, the EDC release said.
The company’s catalog of CD-ROMs and solar products are sold in over 50,000 retail locations nationwide, including Target, Costco.com, TJ Maxx, Big Lots and Burlington Coat Factory, the press release said.
Exxon Mobil wants judgment thrown out
Montgomery, Ala. Exxon Mobil Corp. asked the Alabama Supreme Court on Thursday to throw out the largest verdict in state history, saying it was based on fraud claims that were never proven.
The company’s appeal is an attempt to strike down a $3.5 billion punitive damage judgment set by a Montgomery judge after a jury ruled Exxon Mobil cheated the state out of royalties from natural gas wells drilled in state-owned waters along the Alabama coast.
“The $3.5 billion punitive award is based on the state’s unproven allegations of fraud,” Exxon Mobil attorney Charles Matthews said.
In order to award punitive damages, the jury had to find that fraud occurred. Exxon Mobil’s appeal argues that it had a contract dispute with the state over how to determine the amount of royalties and that punitive damages are not allowed “because there was no fraud.”
Robert Cunningham, an attorney representing the state, said Exxon Mobil made the same argument to jurors, and they didn’t buy it.
Krispy Kreme makes plans for overdue report
Charlotte, N.C. Financially troubled Krispy Kreme Doughnuts Inc. said Thursday it expects to release its overdue earnings report for the fourth quarter by the end of August.
In a terse statement that was posted on the company’s Web site Thursday, the company listed Aug. 30 as the date by which it would release its financial report for the quarter that ended Feb. 1.
The statement was abruptly removed from the Winston-Salem-based company’s Web site late Thursday afternoon. The company’s spokeswoman for investor relations, Robbin Moore, said she could not comment on why it was taken down or whether it was posted in error.
The company has been in a financial tailspin for nearly a year, since reporting its first-ever quarterly loss last spring.
That was followed by allegations of sales padding and other financial improprieties, the closing of stores and the January ouster of former chief executive officer Scott Livengood. The company is now being run by a corporate turnaround specialist.
Cigarette makers want settlement adjusted
Richmond, Va.
The nation’s largest cigarette makers are questioning past payments they made to states as part of a $206 billion settlement over health care costs.
Philip Morris USA, R.J. Reynolds Tobacco Co. and Lorillard Tobacco Co. have said the landmark 1998 settlement forced them to raise prices, contributing to a proliferation of low-cost competitors who took market share – a provision of the settlement. Because the major players lost market share, they want to know whether last year’s payments should be adjusted.
The companies’ requests come as state legislation is targeting cigarette makers operating outside the agreement. Most of the settlement’s 46 states have passed measures that essentially force the smaller companies – mostly discounters and regional players – to raise their prices.