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Coop's Scoop: CES, Macworld get underway

PC execs go native at CES. Also: Apple's time to do or die? And Linux 2.4--late, but who cares?
Written by Charles Cooper, Contributor
Gadgets galore will be on display at the Consumer Electronics Show in Las Vegas, with Philips detailing plans to clear the way for more manufacturers to build Internet devices. Also of note: the heavy attendance by PC makers, whose executives are hogging the keynote schedule this year. The key here is the emergence of digital entertainment, a trend that's blurring the old lines dividing computers from consumer electronics devices.

Bill Gates will also offer the first public demonstration of Microsoft's Xbox video-game console. CES isn't usually high on BillG's personal agenda, but there's a reason for the command performance. He has to sway gamers and developers that Xbox is head and shoulders above anything from Sony and Nintendo. Attendees will also be able to sneak a peek at the company's Ultimate TV, which marries satellite television, WebTV, and digital video recording.

Meanwhile in Baghdad-by-the-Bay, Macworld Expo/San Francisco gets underway with Apple expected to unveil new Power Macs. Steve Jobs gives good demo but he's going to need to be really good this time around. After two consecutive earnings disappointments, Apple needs to impress big time. And that includes offering some new ideas to reinforce its perception as a technology innovator.

Apple's kicking off the new year with a round of massive price cuts. With more than 11 weeks of inventory piling up, the company needs to clear the way in advance of a round of product introductions at the show. A lousy time to own Apple shares, perhaps, but a wonderful time to be in the market for a new Mac.

Linux 2.4 is here--a year behind schedule, but here. It's only fair to point out the disappointment of distributors who had hoped to incorporate the kernel into versions of their products for delivery sometime in the first half of this year. But if you're a Linux camper, this is hardly reason to don sackcloth and ashes. If the powers that be provide a stable product, few customers are going to gripe long about the delay. With all due respect, congenital lateness to market with promised product hasn't severely handicapped Microsoft.

Speaking of Linux, word out of Europe has SuSe, the biggest Linux distributor on the continent, planning a big push into the mobile and embedded markets. Clearly, open source has a role to play in the convergence between the wireless and handheld fields. But SuSe's going to need the assistance of a Big Name partner to make a serious go of it.

Paul Allen's Mercata.com will close its doors, adding yet one more failure to the accidental billionaire's laundry list of losers. Outside of being Bill Gates' best chum back when both guys were doing Clearasil, can somebody tell me what this guy has ever done right?

Yahoo shook up a lot of people with its decision to charge for auction listings. Some now suggest it's a harbinger of the end of the free Internet as we know it. Wrong conclusion. In case you haven't been watching, lots of Internet companies now charge for services that were heretofore given away. If banner ads won't support the business, then management has no wriggle room left. What you're most likely going to see evolve is a hybrid approach, where some things are going to cost and others remain freebies. It's not the end of the world, but it is the beginning of a new, more sober period in the development of the Internet.

Will DVD recording reinvigorate slumping PC demand? Compaq and--reportedly--Apple are outfitting some systems with DVD recordable drives. Other computer makers will likely follow if the market research about pent-up demand for making home movies on DVDs is correct. Pricing remains the other big question. These gizmos still ain't cheap.

Micron Electronics broke the mold when it announced its intention to use AMD's Athlon chip in a forthcoming line of business computers. PC makers such as Micron have used the Athlon in their consumer machines, but this is the first such endorsement by a big computer maker in the market that really matters. Will Micron rivals follow suit? You can bet your bippy.

At the same time, archrival Intel is enjoying a rough rollout for its Pentium 4, according to reports from retailers. The fault isn't so much the chipmaker's as that PC demand remains limp. Some analysts also wonder about the appeal of P4 systems requiring the more expensive Rambus memory that gets packaged with the systems.

Speaking of things Mac, some developers are lobbying Apple to back away from its operating-system strategy in a bid to prolong the life of OS 9. Steve Jobs has let it be known that once OS X is ready for prime time later this quarter, Apple plans to stick with a one-operating-system strategy. Is that the wise move? The answer will ultimately hinge on whether the next-generation OS is as rock solid as Apple maintains.

At long last: Linux 2.4 arrives
Micron to build Athlon PCs
Finally, the check is in the email
Intel moves deeper into consumer electronics
Bush sides with high tech execs
Linux push for handheld market?
What's on tap at Macworld Expo?
Philips works inside Net appliances
Will the Web follow Yahoo's charge?
Paul Allen's Mercata.com to close


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