AllThingsD » fab

oBaz Wants to Rebuild the Online Deal Site, With Help From Groupon's Founders

Drake Martinet — Sat, 17 Dec 2011 18:48:09 +0000

It used to be that online shopping was a refuge from the holiday scrum at the mall. Pajama-clad shoppers could curl up with some hot cider and casually tick off all the gifts on their list. Those were the days.

Today, if you are trying to find the coolest gift from the hottest gift Web site, the experience can be, well, I’ll let iOS developer Ben Jackson, describe it:

Jesus. @Fab is like a river teeming with starving, design-savvy piranhas. It’s like playing Counter Strike to get anything in limited stock.

— Ben Jackson (@benjaminjackson) December 14, 2011

Enter oBaz, which is either just another online curated boutique, or the next stepping stone on the path to wherever online shopping is headed.

What separates oBaz, which stands for “online bazaar,” from competitors like Fab.com is a major attempt at personalization.

Where Fab offers the same aesthete-targeted deals to every visitor, oBaz attempts to offer visitors a mix of products catered to their tastes. In a sense, shoppers don’t look for a store they like, the store fits around whoever “walks in.”

Or, at least, that’s the idea.

“We’ve organized the deals into ‘aisles’ that users can choose to become part of,” said co-founder Brian Ficho. “Once you choose a few aisles, we can start to target deals to you specifically.”

Personalized recommendations in online shopping certainly aren’t new — Amazon has been offering them for years.

But the online retail giant and others are still fundamentally search-and-destroy-style shopping experiences, targeted at shoppers in search of a particular item.

Eight-week-young oBaz is the brainchild of Ficho and Greg Caplan. The company took seed-stage investment from the founders’ former employer, Lightbank, which invested before this recent pivot.

Lightbank is the Chicago-based venture firm founded by Eric Lefkofsky and Brad Keywell, the well-known pair who also co-founded Groupon.

Like most very early-stage companies, oBaz still has lots to shake out before it could hit its stride.

The oBaz team, which now numbers six, is experimenting with different ways to build up a “product interest graph,” which will power its product recommendation engine — much like Facebook and LinkedIn are built on graphs of associations between people.

Its current beta product entices users to help build up their graph by playing a “hot or not” game.

In the game, the site shows a picture of a product to which the user can assign a thumbs up or thumbs down. Those preferences are then used to curate the products offered.

But both co-founders acknowledged their current “game” plan is an incomplete solution to the graph-building problem.

Clever customization aside, oBaz will be faced with the same costs of scaling that weigh on Groupon and every other daily deals site that depend on an ever-increasing flow of offers.

But oBaz’s unique model does give them an advantage. Deal sites like Groupon must constantly seek out new companies to source deals from, because many companies can only afford to use Groupon sparingly.

“At oBaz, we aren’t offering that kind of deal. We can maintain a constant relationship with a merchant, who is really using us to sell extra stock of some item,” said Ficho. “We can see how fast a certain deal takes off, then dial it back so that we only sell as many of something as the merchant has in stock — which means we can sell from that merchant all the time.”

If the future of e-commerce is personalization, then oBaz might be among the first to take a very important step for the retail space: Moving past recommendations in a expansive store and instead rebuilding the store for each customer, while filling it with merchandise that really exists.

Caplan and Ficho stopped by the AllThingsD office for a video interview about the infant company:

[ See post to watch video ]

Siri, Why Don't You Have A Texas Accent?

Arik Hesseldahl — Fri, 16 Dec 2011 19:57:02 +0000

I don’t know exactly why anyone is surprised that Samsung is making Apple’s A5 chip in Texas, but for some reason they are. Reuters reported today that the South Korean chip giant is building at a factory in Texas the wonderchip that powers both the iPhone 4S and the iPad. That’s the surprise. Rather than a factory somewhere in Asia, Samsung is cranking out the chips in the Lone Star State.

Given that Apple and Samsung have been working together for years — the first iPhone chips were Samsung made, after all — I’m not entirely sure why anyone is surprised that this Samsung fab was expanded to accommodate, among other customers, Apple.

Maybe the cybernetic voice of the iPhone’s marquee feature, the personal assistant Siri, should sport a Texan twang, rather than a non-specific accent. There’s a lot more inside the iPhone that comes from Texas than just the A5.

For one thing, the chip itself, or some significant portion of it, was probably designed in Texas to begin with. Remember Intrinsity? That’s the boutique chip design company that Apple acquired in 2010. Yes, that’s the one. Where was it based again? You guessed it: Austin, Texas.

There’s more. This is the very same factory that Samsung announced it was going to expand last year with a $3.6 billion investment. Indeed, yours truly even covered the announcement for Bloomberg News.

The previous fabs have been turning out Flash memory chips since the late 1990s. And since Samsung is the world’s largest supplier of Flash memory, and Apple is the world’s largest consumer of Flash memory, there’s a pretty good chance that the iPhone you’re carrying right now contains flash chips built in Texas. However, Apple buys flash memory from other companies too, including Toshiba and Hynix.

Then there are lots of other smaller components that come from Texas. Texas Instruments supplies the chip that drives the touch screen. As its name implies, TI is based in Dallas and has six fabs in Richardson, Texas (and many others around the world), one of which may turn out the touch screen controllers that iSuppli found in the iPhone. (TI wouldn’t confirm one way or the other if it’s made in Texas, but there’s a pretty good chance!)

And then there’s the audio codec chip from Cirrus Logic, found by market research firm iSuppli in its teardown analysis. It’s another company based in Texas, and so while the chip itself was probably manufactured in Asia, it was designed at Cirrus HQ in Austin.

And finally, don’t forget that Apple itself maintains a huge presence in Austin. The Austin American Statesman reported last year that the company was nearing a deal to lease 55,000 square feet of office space for the Intrinsity team, and is thought to employ about 2,500 people in and around Austin, most of them based at a 400,000 square foot campus.

So for all of Apple’s California good vibes, there’s a lot of Texas in every iPhone it makes.

Absolutely Fabless

John Paczkowski — Tue, 07 Oct 2008 14:11:30 +0000

If it’s true that “real men have fabs,” as Advanced Micro Devices Inc. Chairman W. J. “Jerry” Sanders III (at right in Indiana Jones drag) once said, then AMD is the semiconductor industry’s latest eunuch. This morning the chipmaker said it will spin off its manufacturing operations, splitting itself into two companies–one to design chips and one to make them. The new manufacturing company, called Foundry Co., will be a joint venture between AMD and two Abu Dhabi investment firms–Mubadala Development Co. and Advanced Technology Investment Co.–that have agreed to provide it with some $6 billion in financing to build a new chip fabrication plant, or fab, in upstate New York and upgrade one of two AMD fabs near Dresden, Germany.

A bold move for AMD (AMD), which has sustained seven straight quarters of losses, and one that could dramatically alter its fortunes. Indeed, right off the bat, AMD will push $1.2 billion in debt off its books and onto those of the The Foundry Co. “This is the biggest announcement in our history” said CEO chief executive, Dirk Meyer. “This will make us a financially stronger company, both in the near term and in the long term, as a result of being out from the capital expense burden we have had to bear.”