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  • The rare CEO apology

    Posted Mar 20 2008, 12:05 PM by Kim Peterson
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    I've been thinking about CEO apologies today after reading the Jeff Bezos note plastered on Amazon's front page. Bezos' contrition stems from the fact that the company sold out of the new Kindle electronic book reader in 5.5 hours, and it has been scrambling to increase production ever since. Some customers have waited six weeks to get one. Soon, Bezos said, Amazon will start shipping Kindles to people the same day they order them.

    "We had high hopes for Kindle before its launch," Bezos wrote, "but we didn't expect the demand that actually materialized." 

    This wasn't exactly an apology -- Bezos never said he was sorry -- but it did have a "we screwed up" tone. And yet it smacked of product promotion -- it was another opportunity to advertise the Kindle to everyone who visits Amazon today. Amazon shares rose more than 4% today to $73.25.   Read More...

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  • Apple on pace to become top music seller

    Posted Feb 27 2008, 06:53 AM by Kim Peterson
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    Apple's iTunes store has surpassed Best Buy to become the #2 music retailer in the country, second only to Wal-Mart in sales. And an analyst from the NPD Group, which tracks these sorts of things, said that Apple is on track to catch Wal-Mart this year.

    Apple shares dipped less than a percentage point yesterday to close at $119.15. Best Buy shares rose 3% to $46.50, and Wal-Mart shares rose 2% to $51.40.

    This news says much about the way we consume music. NPD notes that 1 million people stopped buying CDs last year, a trend most apparent in young people. In 2007, 48% of teens didn't buy a single CD -- up from 38% in 2006. So retailers like Wal-Mart, Best Buy and Target -- who mainly sell physical CDs -- are going to see music sales slide.

    But what does the news say about Apple? Is the rise to No. 2 a result of its own sales savvy, or is iTunes the lucky beneficiary of the CD's decline? A closer look at the numbers sheds a little more light.   Read More...

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  • Dude, you're getting a dud

    Posted Dec 18 2007, 08:52 AM by Robert Walberg Rating:

    Remember when it was cool to own/buy a Dell computer? Not that long ago it was Dell, not Apple, that had the laid back young kid starring in commercials that resonated with consumers.  "Dude, it's a Dell,"  was the stuff of genius. Dell's were cool, they were cheap and they were everywhere.  

    Yet in little less than five years Dell has gone from cool to ice cold. Its share of the PC market has eroded due to misguided retail practices, poor customer service and outdated design. The company has also lost its price advantage. Despite the cheap prices you see on the company's web site, or in the flyers that arrive in the mail, once you configure the computer to match even the most basic of needs, the price ends up being as high or higher as PCs from Toshiba, Hewlett Packard and Acer.  

    Quite simply there's nothing that sets the company apart anymore -- at least nothing positive.  Its abysmal technical service group certainly set it apart, as waiting on the Dell help desk was an exercise bordering on cruelty. To its credit, Dell's management team has begun to address this issue by adding staff, but once you get a bad reputation it can be very hard to change consumer perceptions.  Dell has a lot of making up to do and some blunt talk from its back-in-the-saddle CEO, Michael Dell, just might help remake its image. Let's face it, Apple was left for dead a few years back and look at what the return of Steve Jobs did for that company.    Read More...

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