Tech train wrecks in 2007
Posted
Dec 19 2007, 06:52 AM
by
Kim Peterson
Rating:
This year has been a disaster for some tech companies. Oh sure, it's been a fabulous ride for Apple, Amazon and Google.
But this post is about the losingest losers out there. The train wrecks. The Lindsay Lohans of technology. Here are the companies, and their "oops" moments, that made 2007 memorable:
Yahoo
Share performance: Down 30% since the end of October.
Oops moment: Launching a public soul-searching in the form of a 100-day self-examination to craft a strategic plan.
What happened: The 100 days ended with no big announcements. Yahoo is too large and too laden by its own bureaucracy to be nimble. What's more, the company lost valuable search market share to Google this year.
Chance of recovery in 2008: Moderate. Yahoo is overhauling some core services, including e-mail and photo, but has been unable to monetize a user base that numbers some 475 million. Lots more work to do.
Palm
Share performance: Down 40% since October.
Oops moment: In a word: Foleo.
What happened: Palm hyped and then canceled the Foleo, an incredibly unnecessary device that looked and felt like a notebook computer, but wasn't. The idea was that smartphone owners would use the $500 Foleo to check e-mail and documents. Who would pay that much for a half-baked laptop? We never got to find out.
Chance of recovery in 2008: Low. Look at yesterday's quarterly report. Palm stumbled in a fast-moving industry and competitors have zoomed by.
Facebook
Oops moment: Beacongate
What happened: The privately-held company rolled out an invasive ad system that told people what their friends were buying online without getting prior approval for the disclosure. It also planned to use its members to shill for Coca-Cola and other products. Some members rioted and advertisers pulled out.
Chance of recovery in 2008: Very high. Most Facebook members were unaware of the whole issue. The company still has a valuable user base and will continue to bring in the ad revenue.
AMD
Share performance: From $20 in January to $7.68 yesterday.
Oops moment: Hard to choose just one. I'll go with the disappointing delays of its key chips.
What happened: Manufacturing problems affecting production of Opteron and Phenom chips, hurting AMD's chances of catching up to rival Intel.
Chance of recovery in 2008: Low, if you listen to the analysts. Intel has lots of momentum right now.
Microsoft
Share performance: Hovered around $30 all year; lately close to $35.
Oops moment: Releasing the buggy Vista
What happened: Vista isn't exactly a disaster. Call it a mini train wreck. PCWorld says it best: "When it debuted last January, incompatibilities were rampant -- in part because hardware and software makers didn't feel any urgency to revamp their products to work with the new OS. The user account controls that were supposed to make users feel safer just made them feel irritated. And at $399 ($299 upgrade) for Windows Ultimate, we couldn't help feeling more than a little gouged."
Chance of recovery in 2008: Good. Microsoft is working to improve Vista, and was let off the hook a little bit when Leopard debuted with troublesome release issues.
Take-Two Interactive
Share performance: Recovering from $12 lows in August; now at $18.03.
Oops moment: Delaying the next "Grand Theft Auto" to next spring to October, leaving a light holiday release schedule.
What happened: Releasing a game simultaneously for the Xbox 360 and the PlayStation 3 systems proved to be too much.
Chance of recovery in 2008: Very high. GTA is huge, no matter when it's released.