Tech train wrecks in 2007 - Top Stocks
 
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Tech train wrecks in 2007

Posted Dec 19 2007, 06:52 AM by Kim Peterson
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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.

Comments

 

Microsoft has been taking more and more hits from Apple. Vista is just like OSX Tiger, so kudos to Microsoft\. The down side is Tiger was released a few years ago.

Releasing Vista with bugs was old school marketing that started in the 1980's when companies began the practice of releasing software and hardware products that were in the Beta stage in order to beat the competition to the market. The consumer loses. I'm afraid that the practice of releasing Beta version software will stay with us for decades until the consumer revolts and stops buying products that are still in the development stage.

i hate vista. microsoft has really set things back. iwould be very happy to get windows 98 back.

Synchronization/compatability with Vista was poorly planned and has irritated many of us . Fortunately XP is still around to bridge the gap while waiting for fixes.

It is a sham by both Microsoft and all the hardware manufacturers to not have software compatabilities ready for all the peripherals which operate flawlessly under XP.

I use AMD processors and hope they come back strong. They offer excellent alternative to intel and very reliable.

"in part because hardware and software makers didn't feel any urgency to revamp their products to work with the new OS"

That is not "in part". It is the main reason why there were incompatibilities. Vista have been available as Beta, RC for a very long time but yet drivers and updates were not created. The reason is very simple: Money. You think Apple will update their drivers for 3 years products? Of course not. They wants you to buy a new ones. Everyone does that. When they don't do it, Microsoft takes the heat as always. With Leopard, the extent of the problems were less severe simply because there are fewers products and Apple fanboys tends to upgrade everything everytime.

But when I got my Vista machine, I had 0 problems. Simply because everything else was also new. New printers, new monitors, new graphics card, new everthing. When I got my new MacBook, I also had 0 problems. Simply because everything I connect to it is also new.

Troublesome release issues with Apple's Leopard OS? Say what? Can't be. Walt Mossberg didn't write about it; David Pogue didn't write about it; PC World didn't write about it; PC Mag didn't write about it; Business Week didn't write about it. After all, whenever Microsoft has some "troublesome release issues" with a piece of software, the whole world hears about it, almost instantaneously. All of the above write about it--loudly, vocifierously, vehemently.  No issue, no matter how small, how trivial, how relatively unimportant goes undenounced or undisparaged.  Now I am sure that these same entities would not hesitate to do the same for Apple if, in fact, the occasion ever presented itself, and with the same denunciatory and disparaging sarcasm that they so unreservedly and so unhestitatingly lavish on Microsoft.  So I conclude that whoever alleges that Apple has had "troublesome issues" with the initial release of Leopard must be guilty of spreading false and malicious rumors, perhaps set in motion by unknown nefarious forces, about that most perfect of companies, Apple computer, Inc. After all, how could perfect, indeed the most perfect, offerings from the perfect company ever be anything less than, well, perfect?

I'd trade in my Vista for Windows Xp in a heart beat.

Familiarity with an O/S helps loyalty and adaptibility.

I didn't want to re-learn techniques that do not add

anything significant.

Other then GREED , what was the point ?

I feel gouged.

I don't really see a problem for AMD. I have been and always will true to AMD. The hell with Ismell.

Do you think Apple is going to begin taking market share away from Microsoft (albeit small) with the release of Leopard and the fact that it runs Vista as well as any PC?

i'm a little worried about AMD's slip-up, myself. i'm of the ilk that chooses one of the two "sides" in the processor wars - between AMD & Intel - and have been a fan (and customer) of AMD since 1998 when I owned my first K6-II 300Mhz processor.

The fact that their stock price has dropped almost 65% leaves me a little worried that they could be in real trouble, especially when you consider the fact that they shelled out $1 billion to purchase ATI and borrowed another billion to pay for that same deal.

On top of this, it means that Intel is in a good position to control a near-monopoly over the processor business if AMD can't recover from their slip.

This image is not good, no matter how you look at it, like viewing it through a kaleidoscope.

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