Facing a barrage of negative press about its upcoming IPO, Groupon CEO and co-founder Andrew Mason took up a pen to counter critics of the social buying service.

Especially under scrutiny has been the Chicago-based Groupon’s accounting of its finances — along with worries that its torrid growth is slowing — both of which Mason addressed in detail in a pugnacious email memo to his thousands of employees.

Specifically referencing a recent article speculating that the daily deals site was running out of money, Mason said, in part:

“While we’ve bitten our tongues and allowed insane accusations (like in the article above) to go unchallenged publicly, it’s important to me that you have the context necessary to brush this stuff off.”

Mason also took on the controversial ACSOI — or adjusted consolidated segment operating income — metric that Groupon used in its initial filing and later stepped back from.

“The reason we didn’t realize everyone in the world would hate ACSOI (no, it’s not the same reason we didn’t realize everyone in the world would hate our Superbowl ad), is that we think it actually does a pretty good job at describing our marketing expenses in a steady state — we just didn’t realize there would be so many skeptics,” wrote Mason.

Mason also took some aim at competitors, such as LivingSocial and Yelp, in the email.

As for the public offering, which is expected next month:

“If there’s a silver lining, it’s that we’re almost on the other side, and the negativity leaves us well-positioned to exceed expectations with an IPO baby that, having seen the ultrasound, I can promise you is not one of those uglies.”

Then again, that is exactly what a dad-to-be would say about his baby, whatever it looked like.

Mason, when asked about the memo, declined to comment.

There is a lot more than that, so here’s Mason’s full email for all you pencil pushers to peruse:

Dear Groupon,

This weekend, I did a Google News search on our company — my first in awhile. The first story that popped up was called The Fall of Groupon: Is the Daily Deals Site Running Out of Cash? I laughed when I read the headline (in the car by myself, weirdly). First — with this article, the degree to which we’re getting the shit kicked out of us in the press had finally crossed the threshold from “annoying” to “hilarious.” Second, I was struck by the irony — I had just finished a board meeting last Wednesday saying this to myself: I’ve never been more confident and excited about the future of our business.

I realize that this sounds like the kind of thing that CEOs say when they’re trying to pep people up. First of all — I’m all about not pepping people up. If you don’t believe me, just ask my fiancée, Jenny “why don’t you ever say anything nice about me” Gillespie. Want another example? Look at the magazine covers in our lobby, which are there to make you sad by reminding you of the impermanence of success.

I’m going to spend the rest of this email explaining why I’m so excited. You need some ammo to argue back against your blog-reading “friends” (silently argue in your mind, that is — you can’t actually say any of this yet), and I’ve been told that the “what have you ever done with your life that’s so great?” rebuttal isn’t working as well for you guys as it has for me.

While we’ve bitten our tongues and allowed insane accusations (like in the article above) to go unchallenged publicly, it’s important to me that you have the context necessary to brush this stuff off.

I’ll summarize my excitement with four points: 1) Growth in our core business is strong 2) Our investments in the future — businesses like Getaways & NOW — look great, 3) We are pulling away from competition, and 4) We’ve built a great team that I would pit against anyone. In other words, all the stuff that one would want to look good? It looks good.

Many of the long-term unknowns of our business are becoming known, and we like the answers. I will now elaborate in a level of financial detail that will give Jason Child a stomach ulcer.

1. GROWTH IN THE CORE BUSINESS

Thanks to a tremendous effort by our sales team, August in the U.S. is shaping up to be a pivotal month. It appears that will revenues grow by about 12% over last month (which is a lot), while we cut our marketing expenses by 20% in the same period.

Beyond their obvious goodness, these numbers are important because they answer one of the main criticisms thrown at us in the past few months, relating to a metric we put in the S-1 called ACSOI (adjusted consolidated segment operating income) to help people understand how we think about marketing expenses. The reason everyone in the world seems to hate ACSOI is that it makes us look magically profitable by subtracting a bunch of our customer acquisition marketing costs from our expenses. The reason we didn’t realize everyone in the world would hate ACSOI (no, it’s not the same reason we didn’t realize everyone in the world would hate our Superbowl ad), is that we think it actually does a pretty good job at describing our marketing expenses in a steady state –we just didn’t realize there would be so many skeptics. I think it’s worth going deep on this one more time — brace yourself.

Our internal forecast shows two different types of marketing: what I’ll call “normal marketing” — which is NOT excluded from ACSOI — and “customer acquisition marketing,” which is. The way Groupon spends on marketing is unique in three ways:

1. We are currently spending more than just about any company ever on marketing — in Q2, we spent nearly 20% of our net revenue on marketing, while a typical company spends less than 5%. Why do we spend so much? The simple answer is “because it works.” But thats only part of what makes our situation special.

2. Our marketing — at least the customer acquisition marketing that we remove from ACSOI — is designed to add people to our own long-term marketing channel — our daily email list. Once we have a customer’s email, we can continually market to them at no additional cost. Compare this to Johnson and Johnson, McDonald’s, or most other companies. If I’m a Johnson, and I’m trying to sell you a box of Band Aids, I have to keep spending money on commercials and magazine ads and stuff to remind you about how sweet Band Aids are, even after you’ve bought your first box. With Groupon, we just spend money one time to get you on our email list, and then every day we email you a reminder of the sweetness of our metaphorical Band Aid. There is no cost of reacquisition — that’s unusual (and we created ACSOI to point that out). If Johnson wanted to follow the Groupon strategy, he would have to start a free daily newspaper about bandages and then run Band Aid ads in it every day.

3. Eventually, we’ll ramp down marketing just as fast as we ramped it up, reducing the customer acquisition part of our marketing expenses (the piece that we remove in ACSOI) to nominal levels. We are spending a ton now because we’re acquiring as many subscribers as we can as quickly as we can. We aren’t paying attention to marketing budget (just marketing ROI) in the way a normal company would, because we know that even if we wanted to continue to spend at these levels, we would eventually run out of new subscribers to acquire. So our customer acquisition spend drops severely to reflect the fact that eventually we’ll run out of people we can add to our email list. We view this internally as a very large one-time expense and then our job forever after will be to continually convert these subscribers into customers and to make sure our customers keep buying from us. Ongoing, the normal marketing dollars we spend are not something we would remove from our internal calculation of ACSOI.

I tried my best to explain this simply, but it’s not lost on me that if you actually understood this, you probably had to read it three times. It’s not easy stuff. It’s much easier to assume that we’re goons. So people can be forgiven for being suspicious. In fact, feel a little bad about how downhearted the critics will be when we don’t turn out to be a Ponzi scheme — those are good impulses for journalists to have, and I hope our non-evil ways don’t destroy their spirits.

Anyway, there’s a reason that I just went on about ACSOI. One of the questions that skeptics ask is, “when you ramp down marketing, won’t revenues stop growing as well? Aren’t you just buying growth?” Over the past several months we’ve been consistently reducing our marketing spend and yet revenues are still increasing at a significant pace. In Q1 of this year, marketing represented 32.3% of our net revenues. By the end of Q2 it had fallen to 19.4%. And it has continued to fall over the past several months all because we’ve been investing in our own long-term marketing channel — our email list.

Internationally we see the same trends — marketing is down, but revenues are up — every country is either losing less or making more. Even in young markets like Korea, where we’re still making massive investments, we’re seeing unprecedented growth. We started building our Korean team this January, despite the presence of two competitors that were larger than any we’d previously battled from behind. Thanks to the brilliant execution of the Korean team, we are set to be the market leader within months. We’ve never had a country grow as fast as Korea!

What about our joint-venture with Tencent in China? Did you read the article that Gaopeng’s CEO has kidnapped the first born children of all our employees and is putting them to work building a laser beam he’ll use to slice the moon in half? It turns out that that one isn’t true either. China is definitely a different market, but every month we inch closer to profitability. As has been our strategy in launching other countries — Germany, France, and the UK, included — our China growth strategy was to hire quickly and manage out the bottom performers. So far, that strategy has improved our competitive position in China from #3,000 to #8. Will we one day reach the dominant status we enjoy in most (come on, Switzerland!) other countries? It’s too soon to tell, but there’s no question in my mind that we’re building a business that will be around for the long haul.

2. NEW BUSINESS LINES ARE BOOMING

Travel and Product are enormous opportunities. After only a few months, they’re already making up 20% of revenue in some countries. We sold $2M worth of mattresses in the UK — in one day! Groupon Getaways will do $10M in its first calendar month — which you might think is awesome, but we’re actually disappointed with those results because we know how much better we’ll be doing soon.

While there’s still a ton of work to do, Groupon Now! continues to see weekly double digit growth. The model works and I believe it will play a major part in the future of our global business as more merchants and customers join the marketplace.

3. WE ARE PULLING AWAY FROM COMPETITION

If there’s a question I’ve received from Groupon skeptics more than any other, it’s, “how will you fend off the competition — especially massive companies like Google and Facebook?” I could give a dozen reasons to bet on Groupon, but it’s impossible to predict the future or the actions of others. Well, now the sleeping giants have woken up — and the numbers are showing that what was proven true with literally thousands of other competitors is just as true with the incumbents of the Internet: it’s kind of hard to build a Groupon. And since anyone with an Internet connection can track the performance of our competitors, I can be more specific:

Google Offers is small and not growing. In the three markets where we compete, we are 450% of their size.

Yelp is small and not growing. In the 15 markets where we compete, our daily deals are 500% of their size.

Living Social’s U.S. local business is about 1/3rd our size in revenue (and smaller in GP) and has shrunk relative to us in the last several months. This, in part, appears to be driving them toward short-sighted tactics to buy revenue, like buying gift certificates from national retailers at full price and then paying out of their own pocket to give the appearance of a 50% off deal. Our marketing team has tested this tactic enough to know that it’s generally a bad idea, and not a profitable form of customer acquisition.

Facebook sales are harder to track, but are even less significant at present.

My point is not that our competitors will fail — some may actually develop sustainable businesses, or even grow — after all, local commerce is an enormous market. The real point is that our business is a lot harder to build than people realize and our scale creates competitive advantages that even the largest technology companies are having trouble penetrating. And with the launch of NOW, I suspect our competition will have an even harder time in light of the natural barriers to entry that are needed to build a real-time local deals marketplace.

4. OUR TEAM

This is the fluffiest of the four points, but maybe the most important — we’ve built a global team of hungry entrepreneurial operators and seasoned executives that rivals any team I know of. Almost every day, I find myself in a scenario where I silently think, “I can’t believe I got this person to work for me — that failure of judgement is perhaps their single flaw.”

I point out the team because while today the business is strong and it appears we must endure success for awhile longer (despite its impermanence), we will inevitably be challenged with issues we didn’t predict — and when that happens, the quality of our team will be a deciding factor in our ultimate long-term success.

FINAL THOUGHTS

I wrote this email because when I read some of the press this weekend, I realized a rational person could read this stuff and wrongly conclude that we’re in trouble. The irony is hopefully clear: We’ve never been stronger.

And while we’ve refrained from defending ourselves publicly, you’ve continued to create our best defense, with every department innovating new practices that are taking our business to the next level. Thanks for staying tough, determined, and agile throughout this process. For now we must patiently and silently endure a bit more public criticism as we prepare to birth this IPO baby — a breed for which there are no epidurals. If there’s a silver lining, it’s that we’re almost on the other side, and the negativity leaves us well-positioned to exceed expectations with an IPO baby that, having seen the ultrasound, I can promise you is not one of those uglies.

I’ve been as candid as possible — hope this sheds some light on things. Reply with your questions if anything remains unclear. Amidst all this, I hope you remember what we’re doing here — we are making history together. I guess you don’t get to build something that reshapes the local commerce ecosytem without getting a few bruises. I’m so proud of the work we’re doing, and I feel extraordinarily lucky to work on what I think is the best thing that’s happened to small businesses since the telephone We’ve invented something that is catalyzing millions of dollars of local commerce every single day in 45 countries and fills the lives of millions of customers with unforgettable experiences — it’s pretty remarkable.

Looking forward to getting this behind us!

Andrew

P.S.: I almost forgot to address the nonsense about us running out of money in the article above. If you apply the same logic used in the article, you’d have concluded long ago that companies like Amazon and Wal-Mart were running out of cash too. Both have often had payables far in excess of their cash. Finance geeks call this a working capital deficit. It’s normal, manageable and a lot of folks actually believe it’s good thing and would kill to get paid from their customers long before they have to pay their suppliers. We are generating cash, not losing it — we generated $25M in cash last quarter alone, adding to the $200M we had before. In other words, we’re doing the opposite of running out of money.

Speaking of “it looks good,” here is Conan O’Brien with a Tourette’s version of Mason’s new catchphrase:

The court took a dim view of Google’s claim that most faces and license plates are already blurred beyond recognition and an even dimmer one of its argument that manually ensuring all of them are obscured would be prohibitively expensive.

“The claimants are discounting any breach of privacy rights of numerous individuals, in the interest of their commercial success,” the court wrote. “All privacy breaches could be avoided, but this would entail additional costs for the defendants, as they would have to make images (even more) unrecognisable in part manually. The additional costs would obviously not, however, jeopardise the commercial survival of the defendants.”

Tragically for Google, “it costs too much” rings hollow as a defense when you’re a company that grossed, what, $29 billion last year.

In a bold and definitive move, AOL is paying $315 million, mostly in cash, to buy the Huffington Post, one of the Web’s most prominent news and opinion sites.

As part of the deal, Huffington Post co-founder Arianna Huffington (pictured here)–who was derided by some when she co-founded the left-leaning site in 2005 with investor and well-known communications exec Kenneth Lerer–will become president and editor in chief of the Huffington Post Media Group within AOL.

The deal was signed late this afternoon, and the board of directors of each company and shareholders of the privately held Huffington Post have approved the transaction.

In an exclusive video interview BoomTown conducted earlier today in Dallas, just before Super Bowl XLV, both Armstrong and Huffington were jovial that the whirlwind deal, begun in November, actually worked out so quickly.

Perhaps giddy, they hit upon a common motto:

“One plus one equals 11.”

Get it? One and one next to each other is the number 11!

Let’s move on, shall we?

AOL said it is expected to close in the late-first or early-second quarter of 2011.

Once culminated, it will put Huffington in charge of all AOL content and other properties, including well-known names such as Engadget, Moviefone, MapQuest and TechCrunch.

She said she plans to move to New York from Los Angeles, although she will also maintain her longtime Brentwood home there.

And content for all these sites will be integrated deeply into the Huffington Post, giving it a huge new infusion of editorial material.

More to the point, the flashy acquisition–which essentially came together in less than two weeks in January–will become the linchpin of AOL CEO Tim Armstrong’s aggressive, if risky, strategy to focus the long-troubled company as a content and advertising powerhouse.

For AOL, the deal gives it a popular branded site that is very good at generating lots of page views and impressions very efficiently–which is the company’s whole thrust these days.

That means lots more ad inventory to sell and an injection of content talent, giving AOL the scale it desperately needs.

The move also obviously gives AOL a much-needed editorial identity and cohesion, which it doesn’t really have.

In fact, many think AOL needs a rallying point to bring clarity to its hodgepodge of recent acquisitions that all center on the notion that a strong company has yet to emerge in the premium content space.

Here is a mock-up of the front page of AOL tonight (click on it to make it larger):

While it all makes for a riveting narrative by the charming Armstrong, AOL still has not delivered the business turnaround promised after its spinoff from Time Warner in 2009.

Wall Street, which has given Armstrong a lot of rope, has become more impatient of late to see results–especially more robust increases in its display advertising business, as its access business dies off–after AOL spun off from Time Warner in 2009.

In its quarterly report last week, AOL reported earnings of 61 cents a share on revenue of $596 million.

But, as MediaMemo’s Peter Kafka wrote:

The bigger picture is that Armstrong’s turnaround is still in progress. Ad revenue was down 29 percent in the last quarter, although that number is worse than it looks. A big chunk of the decline comes from moves AOL has intentionally made that will cut revenue in the short run in return for more profitable sales down the road.

A more representative data set for Armstrong are his display ad sales, which are down 14 percent overall and eight percent in the U.S..

The bad news is that the rest of the Web ad industry is well into rebound mode; the good news is that AOL has trained Wall Street to expect numbers like these. If you’re waiting to see positive sales numbers, Armstrong said during AOL’s earnings call this morning, wait until the second half of this year.

In any case, the move is a good one for the Huffington Post since it will vault it to the next level of growth.

Other companies, such as Yahoo and NBC Universal, had looked at the company as a purchase target, and many expected it to eventually sell out to a larger company.

Sources close to the Huffington Post said that that outcome seemed the most likely, and the recent expansion of the site and its audience made it a good time to do a deal now.

Talks with Yahoo last year went nowhere, sources said, but Armstrong was not as slow to act.

Indeed, the actual deal happened quickly, said Armstrong and Huffington in a video interview with BoomTown earlier today (which you can see here).

The pair started talking in early November of last year at the Quadrangle Conference in New York and continued their discussions through the holidays.

Armstrong made the official offer to Huffington by phone in January, while she was at the World Economic Forum in Davos, Switzerland, and he was snowed in in New York.

Five time multiple to the Huffington Post’s upward of $60 million in expected revenue for the coming year, and nearly 10 times the $31 million for 2010, the offer was accepted quickly.

AOL used cash for $300 million of the purchase and $15 million in stock for the rest.

“The idea of turning a fire hose of traffic onto our content made enormous sense,” said one person close to the situation. “Everything is changing so fast, it seemed like the time was right.”

An IPO was also considered for the Huffington Post, sources said. But since the site only recently moved into profitability–although barely–such an event would have been farther out.

That’s despite the fact that the Huffington Post has seen fast-growing traffic and influence, spurred in part by Huffington’s larger-than-life persona in both the mainstream media and blogosphere.

The wide-ranging site–which has added a number of content areas in recent years beyond its flagship political offering–currently has almost 26 million unique monthly visitors, according to recent stats, moving in close range to established news organizations such as the New York Times.

That kind of success seemed unlikely when the Huffington Post launched on May 9, 2005, positioning itself as as a liberal counterweight to the popular right-leaning Drudge Report.

But the Huffington Post’s heady mix of celebrity bloggers, personality and voice, as well as aggressive curation of links from other sites, quickly caught on.

To fund its efforts, the New York-based online media company has raised $37 million from angel investors such as Lerer–the largest individual shareholder, followed closely by Huffington–and venture firms such as Greycroft Partners, Softbank Capital and Oak Investment Partners.

The growth has not been without controversy around issues such as lack of payments to bloggers who contribute and accusations that the site uses too much content from other Web sources when linking.

And Huffington herself has also been a lightning rod, which has been both positive and negative for the site.

But, there is no question she is one of the Web’s most prominent players, along with writing books, appearing on television frequently and being a fixture at high-profile events in New York, Los Angeles and Washington, D.C.

That includes a never-ending panoply of parties that feature a potent mix of movie stars, corporate poo-bahs, glad-handing politicians and lots of journalists from all over the media.

In fact, full disclosure, I was at one of those parties this past weekend for actor Colin Firth and others involved in the making of the Oscar-nominated film “The King’s Speech.” (Apropos of nothing, actor Helena Bonham Carter is as smart as you would expect, but much more delicate.)

As part of the AOL deal, CEO Eric Hippeau–who has been integral to professionalizing the business and will be joining Lerer Ventures–and Chief Revenue Officer Greg Coleman will leave the Huffington Post.

Ironically, Coleman was replaced by Armstrong as head of ad sales at AOL after he took over as CEO. Coleman got a big payout and will now apparently get another.

But the rest of the 200 Huffington Post employees are moving over to AOL with Huffington, who Armstrong hopes will be the company’s ace in the content hole going forward.

There are likely to be changes to come too at AOL, within weeks, especially in its content-side management and site staffs.

AOL provided some quotes in support of the deal from prominent Internet figures who know Huffington well.

“Arianna is one of the preeminent authors and editors of our time, and Tim has a remarkable track record of business success,” said Facebook COO Sheryl Sandberg. “Bringing them together creates tremendous potential for AOL.”

And Twitter co-founder Biz Stone said:

“Editorial vision and leadership are essential in order to transmute our shared cacophony of voices into a valuable dialogue. Arianna’s expertise, empathy, and entrepreneurial enthusiasm forms a kind of alchemy turning mere words and phrases into powerful expressions of humanity.”

Inter-Internet harmony: How sweet!

Here is the official press release, with all the details, but there is also an 8 am ET AOL conference call tomorrow:

AOL AGREES TO ACQUIRE THE HUFFINGTON POST

Acquisition Will Solidify AOL’s Strategy of Creating a Premier Content Network With Local, National and International Reach

Arianna Huffington To Lead Newly Formed The Huffington Post Media Group Which Will Integrate All Huffington Post and AOL Content, Including News, Tech, Women, Local, Multicultural, Entertainment, Video, Community, and More

The New Combined Media Group Will Reach 117 Million Americans and 270 Million Globally

Group Uniquely Positioned To Redefine the Future of Brand Advertising and Marketing For an Engaged and Influential Audience

New York, NY–February 7, 2011–AOL Inc. [NYSE:AOL] announced today that it has entered into a definitive agreement to acquire The Huffington Post, the influential and rapidly growing news, analysis, and lifestyle website founded in 2005, which now counts nearly 25 million unique monthly visitors*.

The transaction will create a premier global, national, local, and hyper-local content group for the digital age–leveraged across online, mobile, tablet, and video platforms. The combination of AOL’s infrastructure and scale with The Huffington Post’s pioneering approach to news and innovative community building among a broad and sophisticated audience will mark a seminal moment in the evolution of digital journalism and online engagement.

The new group will have a combined base of 117 million unique visitors a month in the United States and 270 million around the world**. Following the close of this transaction, AOL will accelerate its strategy to deliver a scaled and differentiated array of premium news, analysis, and entertainment produced by thousands of writers, editors, reporters, and videographers around the globe.

As part of the transaction, Arianna Huffington, The Huffington Post’s co-founder and editor-in-chief, will be named president and editor-in-chief of The Huffington Post Media Group, which will include all Huffington Post and AOL content, including Engadget, TechCrunch, Moviefone, MapQuest, Black Voices, PopEater, AOL Music, AOL Latino, AutoBlog, Patch, StyleList, and more.

“The acquisition of The Huffington Post will create a next-generation American media company with global reach that combines content, community, and social experiences for consumers,” said Tim Armstrong, Chairman and CEO of AOL. “Together, our companies will embrace the digital future and become a digital destination that delivers unmatched experiences for both consumers and advertisers.”

Armstrong continued, “Arianna is a singularly passionate and dedicated champion of innovative journalistic engagement, and a master of the art of using new media to illuminate, entertain and enhance the national conversation. Arianna is a remarkable person and she will continue to create remarkable outcomes for the combined company.”

“This is truly a merger of visions and a perfect fit for us,” said Huffington. “The Huffington Post will continue on the same path we have been on for the last six years–though now at light speed–by combining with AOL. Our readers will still be able to come to the Huffington Post at the same URL, and find all the same content they’ve grown to love, plus a lot more–more local, more tech, more entertainment, more finance, and lots more video. We are fusing a legendary and powerful new media brand with a vibrant, innovative news organization, known for its distinctive voice, a highly engaged audience, an expertise in community-building, and a track record for demystifying the news and putting flesh and blood on the data while drawing our audience into the conversation.”

Huffington continued, “By uniting AOL and The Huffington Post, we are creating one of the largest destinations for smart content and community on the Internet. And we intend to keep making it better and better.”

Kenneth Lerer, The Huffington Post’s Co-Founder and Chairman, said, “The Huffington Post team has created a potent brand with the proven track record of knowing how to grow traffic, inform and entertain its readers and build a one-of-a-kind online community. Add that to the powerful scale and resources of AOL and you have the perfect combination for today and the future. Together these two companies will be a premier online content provider. From local citizen reporting through AOL’s Patch, to The Huffington Post’s national reporting on politics, business and culture, consumers will have access to everything they want whenever they want it.”

AOL has agreed to purchase The Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. The Huffington Post is privately owned by its two cofounders, as well as a group of investors. The proposed transaction is subject to customary closing conditions, including receipt of government approvals. The boards of directors of each company and shareholders of The Huffington Post have approved the transaction. The transaction is expected to close in the late first- or early second-quarter 2011.

The Huffington Post over-indexes on educated, affluent users, reaching the key decision makers in C-suites around the globe. The Huffington Post speaks to this influential audience via a host of prominent voices on its group blog. Among those who have blogged on The Huffington Post are: President Barack Obama, Secretary of State Hillary Clinton, Mayor Michael Bloomberg, Larry Page, Diane Sawyer, Buzz Aldrin, Nora Ephron, Bill Maher, Madeleine Albright, Robert Redford, Katie Couric, Neil Young, Rahm Emanuel, Mia Farrow, Senator Russ Feingold, Senator Al Franken, Ari Emanuel, Harry Shearer, Senator John Kerry, Representative Nancy Pelosi, Madonna, Lawrence Summers, Jamie Lee Curtis, Ryan Reynolds, Craig Newmark, Alec Baldwin, Aaron Sorkin, Natalie Portman, Scarlett Johansson, Russell Simmons, Sean Penn, Bill Gates, Norman Lear, Charlie Rose, Elizabeth Warren, Tavis Smiley, Sheryl Sandberg, George Clooney, and former President Bill Clinton. And the audience speaks back, generating four million comments a month***.

The Huffington Post’s affluent, influential audience, that is growing at a rate of 22 percent (December 2009 vs. December 2010)****, when combined with AOL’s massive scale, video offerings and local expertise, will represent an incredibly desirable demographic for a broad range of advertising partners across the board.

And here is Armstrong’s internal memo to the AOL staff:

AOLers,

We are taking another major step in the comeback of AOL. Today we are announcing that we have agreed to acquire The Huffington Post, one of the most exciting, influential, and fastest growing properties on the Internet. We believe in brands, quality journalism, and the positive role of communities in the world–The Huffington Post shares our values and the combination of the two companies will create the premier global and local media company on the Internet.

Co-founded six years ago by Arianna Huffington and Ken Lerer, The Huffington Post has grown to become an industry leader–one of the Web’s most popular and innovative sources of online news, commentary, and information. Arianna and team have created a brand and a destination that focuses on the consumer experience. By combining The Huffington Post with AOL’s network of sites, thriving video offerings, local expertise and enormous reach, we will create a company that is laser-focused on serving our audiences across every platform imaginable–social, local, video, mobile and tablet.

The Huffington Post is core to our strategy and our 80:80:80 focus–80% of domestic spending is done by women, 80% of commerce happens locally and 80% of considered purchases are driven by influencers. The influencer part of the strategy is important and will be potent.

The Huffington Post is a strong influencer brand and it attracts a valuable audience, including a great focus on women’s content. In addition, Arianna Huffington is a world-renowned expert on women’s topics and issues, and has enabled The Huffington Post to grow rapidly by continually developing new audiences.

In the local area, the combination of the two companies will create a scaled connection between global and local communities on one platform. This will create a new way for people to get local and global information in a timely and entertaining way.

The Huffington Post will join the family of AOL Brands that are destinations for an influencer audience, brands like TechCrunch, Engadget, AutoBlog, and Moviefone. Uniquely, The Huffington Post is the platform for influential people–the people that drive trends, commerce, politics, entertainment, news, and information. Adding this strategic platform to our already strong network of sites, including the AOL homepage, has the potential to make AOL the most influential company in the content space.

Arianna Huffington is one of the most successful entrepreneurs in the Internet space and someone that is even more successful in building communities and relationships in every corner of the globe. The Huffington Post and Arianna have created a company that has partnered with the most successful and well-known leaders in all aspects of society that touch important topics to give consumers direct access to the most influential decision makers and community leaders.

This acquisition will create a high-quality and diverse digital ecosystem encompassing local, national and international news, politics, entertainment, technology, fashion, sports, health, personal finance, green, lifestyle, the arts and more. This deal will combine the amazing talent at AOL with the innovative and talented staff of The Huffington Post. Here are just a few high-level points around what this deal brings to market:

* Together, AOL and The Huffington Post will have 117MM unduplicated domestic monthly UVs, and ~270MM monthly UVs worldwide (according to comScore Dec 2010).

* The Huffington Post is one of the fastest growing web properties on the Internet. It grew 22% last year–that’s faster than Twitter, which grew 18% – and 15x as quickly as the Internet grew last year (comScore Dec ’09-’10).

* Both AOL and The Huffington Post count powerful, affluent users among their top loyal visitors, significantly over-indexing in $100K+ income users.

* AOL passed Hulu in unique viewers on video in the fourth quarter of 2010; video views on AOL are up 400 percent year-over-year.

* Between AOL’s innovative Project Devil ad unit, engaging users for 27 seconds longer than traditional display ads, and The Huffington Post’s highly-vocal community, with 4MM+ comments per month, we will marry attention-grabbing content and brand experiences for both advertisers and consumers.

In the local area, the combination of the two companies will create a premier global/local syndication network at scale. This will create a new way for people to get local and global information in a timely, informative and entertaining way.

To maximize the strategic advantage of this great deal, we will be creating a new group at AOL called The Huffington Post Media Group. Within this group will be AOL Media, AOL Local & Mapping, AOL Search and our new friends at The Huffington Post. We will continue operating the towns structure, AOL.com and HuffingtonPost.com.

I’m thrilled to announce that Arianna Huffington will join AOL’s executive team as President and Editor in Chief of The Huffington Post Media Group. We have asked Jon Brod to lead the overall operational integration on the AOL side of the combined entities. Jon will lead the local group integration and work closely with David Eun and the teams in AOL Media. We will work quickly with The Huffington Post to create a combined organizational design to coincide with the deal closing. While we wait for the required regulatory reviews to be completed and the transaction to close before implementing the design, we will move very quickly to plan the details of the integration of the two companies. To this end, we will announce the new organizational structure as soon as possible.

In the meantime, we will continue creating great content and products for our consumers within the town structure and stay laser-focused on the aggressive goals we have set for our winter luge. We are on the right track and will continue our weekly operating cadence and town structure to drive successful results against our company goals.

Here’s a special message for all of you we taped to welcome The Huffington Post and Arianna to our AOL Family:

http://today.office.aol.com/company-news/2011/02/aol-agrees-buy-huffington-post

And of course we wanted to welcome Arianna to our “You’ve Got” video of the day–check her out on AOL.com.

We will be holding a company all hands meeting to address your questions related to today’s exciting news. We will video conference from our New York office on the 6th Floor at 9:30 AM ET and will be joined by Arianna Huffington and key executives from her organization. We will also be holding a call for our west coast offices at 2:00 PM ET and for our Patch offices at 2:45 PM ET. See below for meeting info (conference rooms will be sent out shortly).

AOL is playing to win…and The Huffington Post and AOL will occupy a unique place in the future of the Internet. Let’s go get it done.

–TA

(More full disclosure: As has been previously reported by MediaMemo, All Things Digital had the briefest and most preliminary of discussions with Armstrong about moving to AOL last year, while exploring several other options. All’s well that ended well: We stayed at Dow Jones, which is owned by News Corp.)

It’s a big, wide and very digital world out there and that’s why I’m headed around the globe–quite literally–for the next week.

First stop, due east of San Francisco, where I arrived today in Munich, Germany, to moderate several sessions for Hubert Burda Media’s annual DLD conference.

That includes interviewing a whole lot of players I see all the time in Silicon Valley, including investor Reid Hoffman, Accel Partners’ Jim Breyer and Google sales majordomo Nikesh Arora, as well as the two hottest start-up leaders on the Web, Groupon’s Andrew Mason and Dennis Crowley of Foursquare.

And while there are even more U.S. techies here–many on their way to the World Economic Forum in Davos, Switzerland–I like DLD because it gives me a chance to meet a lot of European entrepreneurs and also grok a different and global perspective on tech, media and more.

It starts Sunday.

Then, from here, even farther east. I head for Hong Kong, where I’ll be meeting my All Things Digital other half, Walt Mossberg and ATD’s secret brain Lia Lorenzano to meet with our Dow Jones partners and scope out a possible AsiaD conference in China in the fall.

We’ve had our international aspirations before that did not pan out–see one of the many videos I did for a possible EuroD in 2007, while we visited Dublin, Ireland–so nothing’s certain.

But we’re hoping we can pull off some kind of international conference in 2011, one of the many parts of the expansion of our D offerings, including more events and many additions to our reporting staff on the ATD Web site this fall.

I will be posting videos from both places, including another episode of “Where in the World Are Walt & Kara?”

Until then, enjoy this one from Dublin Castle in 2007:

]]> http://allthingsd.com/20110121/from-u-s-to-germany-to-china-boomtown-goes-around-the-digital-world-in-a-week/feed/ 3 http://allthingsd.com/20110114/index-ventures-danny-rimer-and-mike-volpi-to-open-silicon-valley-office/ http://allthingsd.com/20110114/index-ventures-danny-rimer-and-mike-volpi-to-open-silicon-valley-office/#comments Fri, 14 Jan 2011 11:13:29 +0000 Kara Swisher http://kara.allthingsd.com/?p=39499

Two of Index Ventures’ high-profile partners–Danny Rimer and Mike Volpi–are opening a new Silicon Valley office for the Europe-based venture firm in September.

The move is actually more of a return home for both men, now located in London, who had lived and worked at tech epicenter for much of their careers.

Among other things, before their stints at Index, Rimer was an Internet analyst at Hambrecht & Quist and also at the now-defunct Barksdale Group, while Volpi was an exec at Cisco.

BoomTown had been hearing about the possibility of the move for months, but Rimer and Volpi finally confirmed it in an interview yesterday.

“We thought we would be better positioned to support our entrepreneurs by being in Silicon Valley,” said Volpi (pictured here), who left the area when he became CEO of the then-hyped Joost premium online video service. “Having two solid investors from Index on the West Coast was important, as opposed to a chipshot.”

Volpi noted that of Index’s $1.3 billion in investments in 173 companies, $400 million was in 58 U.S.-based start-ups. In addition, the firm had helped another 35 move here.

There are currently nine investing partners at Index, which is actually headquartered in Geneva, Switzerland.

Rimer noted that initially it will just be him and Volpi here, as well as some support staff. But it was likely they would expand their office, which will be located in either San Francisco or around Palo Alto, Calif.

“It has been a challenge to be a European firm and also be present in the Valley and be considered an insider here,” said Rimer (pictured here), who often traveled to California. “There is a lot to have an immediate ability to be face-to-face with our companies.”

Recent investments by Index in California include Flipboard, Swipely, Boku and Factual.

Rimer and Volpi said the move did not mean deals were only to be found in Silicon Valley, as Index is not focused on geographical investing.

In addition, the pair will continue their focus on cloud computing, infrastructure and social, wherever the investments were to be found.

“We’re not coming to the U.S. to do only U.S. deals,” said Volpi. “But there is a lot to be said for being part of the daily mix in Silicon Valley.”

In other words: Party at Mary Meeker’s house!

(The well-known Morgan Stanley analyst has also recently moved to the West Coast from New York to join Kleiner Perkins.)

]]> http://allthingsd.com/20110114/index-ventures-danny-rimer-and-mike-volpi-to-open-silicon-valley-office/feed/ 0 http://allthingsd.com/20101203/war-against-wikileaks-continues-france-joins-in/ http://allthingsd.com/20101203/war-against-wikileaks-continues-france-joins-in/#comments Fri, 03 Dec 2010 16:43:48 +0000 Arik Hesseldahl http://newenterprise.allthingsd.com/?p=126 The battle to cut off WikiLeaks, the secret-exposing site that has official Washington in such an uproar, has turned into a global cat-and-mouse game on the Web. Here’s the rundown:

First, the site Wikileaks.org was dropped by its domain name services provider last night and so has been forced to relocate to another domain name, within Switzerland’s top-level domain. The site can now be found at Wikileaks.ch, which forwards directly to an IP address. WikiLeaks’ former provider, EveryDNS, said in a statement that it took the action because of the numerous denial-of-service attacks that had been carried out against the original domain. More from the Guardian here.

Meanwhile, Connecticut Sen. Joe Lieberman has introduced legislation that would criminalize the publication of the name of any U.S. intelligence source. (Wait, that’s not already illegal?) “Our foreign representatives, allies, and intelligence sources must have the clear assurance that their lives will not be endangered by those with opposing agendas, whether they are Americans or not, and our government must make it clear that revealing the identities of these individuals will not be tolerated,” Lieberman said in a statement. It’s called the Shield Act, and you can read it here.

Then France is getting into the act. Le Point reports that Eric Besson–minister of industry, energy and the digital economy–has asked a government regulator to look into ways to block French Internet companies from hosting the files in that country. A Google translation of Le Point’s story is here.

Finally, Amazon issued a statement giving its side of the story on how it came to terminate its relationship with WikiLeaks, which had briefly been a customer of its Amazon Web Services. It wasn’t the DDOS attacks, it says, nor government pressure, but that WikiLeaks was violating several requirements of its Terms of Service agreement. For one thing, WikiLeaks was required to represent that it had rights to the content it was hosting. “It’s clear that WikiLeaks doesn’t own or otherwise control all the rights to this classified content,” Amazon says. For its part, WikiLeaks says Amazon is lying.

]]> http://allthingsd.com/20101203/war-against-wikileaks-continues-france-joins-in/feed/ 0 http://allthingsd.com/20101201/the-mobile-os-world-symbian-ios-are-superpowers-android-a-developing-nation/ http://allthingsd.com/20101201/the-mobile-os-world-symbian-ios-are-superpowers-android-a-developing-nation/#comments Wed, 01 Dec 2010 19:43:05 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=53458 Some sobering data points for the Droid army and a reminder that the Android onslaught is still largely a domestic phenomenon (for Koreans). Mobile Web usage statistics for the month of October compiled by StatCounter and Royal Pingdom reveal Apple’s iOS and Nokia’s Symbian as the dominant platforms, with Android besting them in a single country.

Unsurprisingly, Symbian is the leading mobile OS worldwide. It’s dominant in some 100 countries and accounts for more that half of all mobile Web usage in 75 of them. It essentially owns the Mideast and most of the developing world, thanks to those regions’ affinity for Nokia’s cheap mobile phones.

Apple’s iOS is the second most used mobile OS worldwide, with its iPhone and iPod touch claiming the most mobile Web traffic in 30 countries. In 21 of them, those devices accounted for more than half of all mobile Web traffic. IOS appears most popular in Canada, Cuba (!), Switzerland and Australia, where it claims over 70 percent of all mobile Web traffic. Interestingly, it’s quite a bit less popular in the United States, where it garnered a little over 35 percent.

Research in Motion’s BlackBerry OS leads four countries, with one–the Dominican Republic–where OS usage is over 50 percent. Shockingly, in its home country of Canada, it accounts for a paltry 3.6 percent of mobile Web traffic.

And Android?

It leads just one country, South Korea, with a 78.3 percent share of all mobile Web traffic. Presumably, that’s thanks to Samsung, which is based in the country and sells a number of Android phones. So while Android is surging ahead, thanks to Google’s strategy of flooding the market with multiple handsets on multiple carriers at a wide range of price points, there’s still a hell of a lot of market share that it hasn’t even come close to touching.

Top countries for iOS	Top countries for Android	Top countries for Blackberry	Top countries for Symbian
1. Canada, 83.7%	1. South Korea, 78.3%	1. Dominican Republic, 57.1%	1. Chad, 94.0%
2. Cuba, 77.2%	2. Austria, 27.3%	2. Guatemala, 45.4%	2. Libya, 93.9%
3. Switzerland, 76.7%	3. Taiwan, 26.5%	3. United Kingdom, 40.4%	3. Sudan, 92.9%
4. Australia, 72.5%	4. Denmark, 25.3%	4. Colombia, 38.9%	4. Iraq, 90.1%
5. Ireland, 69.7%	5. Slovenia, 24.0%	5. El Salvador, 37.54%	5. Oman, 88.3%
6. New Zealand, 69.0%	6. United States, 23.3%	6. United States, 32.0%	6. Jordan, 87.1%
7. France, 67.4%	7. Netherlands, 21.7%	7. Indonesia, 31.7%	7. Egypt, 86.6%
8. Singapore, 64.6%	8. Sweden, 21.3%	8. Saudi Arabia, 30.6%	8. Somalia, 85.2%
9. Denmark, 64.3%	9. Estonia, 16.8%	9. Panama, 29.2%	9. Mozambique, 84.4%
10. Sweden, 61.6%	10. Norway, 16.0%	10. Jamaica, 18.8%	10. Paraguay, 83.9%

[Image credit: Chart and data courtesy Royal Pingdom]

]]> http://allthingsd.com/20101201/the-mobile-os-world-symbian-ios-are-superpowers-android-a-developing-nation/feed/ 0 http://allthingsd.com/20101021/zongs-david-marcus-talks-about-the-next-big-thing-in-mobile-payments/ http://allthingsd.com/20101021/zongs-david-marcus-talks-about-the-next-big-thing-in-mobile-payments/#comments Thu, 21 Oct 2010 13:00:40 +0000 Kara Swisher http://kara.allthingsd.com/?p=35971

There’s no question that mobile is the way an increasing number of payments are made for a variety of virtual goods.

Recently, BoomTown visited San Francisco-based Boku, one of the players in the race to win in this competitive space.

And, earlier this week, I motored on down to Menlo Park, Calif., to visit Zong.

While I would like to know why these services require such odd names, it’s clear Zong is good enough for Facebook to make it the mobile payment option for its Facebook Credits.

Zong is a spin-off from a company called Echovox, based in Switzerland. Zong garnered $15 million in funding from Matrix Partners earlier this year.

That investment was made by Dana Stalder, who was the former exec of PayPal, the pioneering online payment company that was bought by eBay.

Still, even with help, Zong has a complex business to run, which requires maintaining relationships with wireless companies around the world.

Sort of like herding cats, I would imagine.

Here’s my video interview with CEO David Marcus, who talks about where the business is headed:

]]> http://allthingsd.com/20101021/zongs-david-marcus-talks-about-the-next-big-thing-in-mobile-payments/feed/ 0 http://allthingsd.com/20100726/iphone-4-hits-17-more-countries-friday/ http://allthingsd.com/20100726/iphone-4-hits-17-more-countries-friday/#comments Mon, 26 Jul 2010 12:05:11 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=45490 The iPhone 4’s international roll-out begins in earnest this week. Come Friday, July 30, the device will go on sale in 17 more countries–Australia, Austria, Belgium, Canada, Denmark, Finland, Hong Kong, Ireland, Italy, Luxembourg, Netherlands, Norway, New Zealand, Singapore, Spain, Sweden and Switzerland. Left off the roll-out roll call, much to the dismay of its citizens, is South Korea, where regulatory issues are reportedly slowing things down. By September, the iPhone 4 should be in stores in 87 countries, making its global roll-out Apple’s fastest ever.

]]> http://allthingsd.com/20100726/iphone-4-hits-17-more-countries-friday/feed/ 0 http://allthingsd.com/20100531/two-month-two-million-ipads/ http://allthingsd.com/20100531/two-month-two-million-ipads/#comments Mon, 31 May 2010 12:42:20 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=20036 Some Memorial Day bragging from Apple (AAPL): The company has sold two million iPads in the past two months.

No other details, of course–specific verbiage is that sales “topped 2 million in less than 60 days”–but we can safely assume that most of those sales were in the U.S., since the device didn’t go on sale internationally until last weekend.

If you like statistics: That’s approximately 33,000 iPads per day, 1,388 iPads per hour and 23 iPads per minute.

And if you want to hear about the iPad from the man himself: Apple CEO Steve Jobs kicks off the D8 conference on Tuesday.

Press release excerpt:

Apple Sells Two Million iPads in Less Than 60 Days

CUPERTINO, Calif., May 31 /PRNewswire-FirstCall/ — Apple® today announced that iPad(TM) sales have topped two million in less than 60 days since its launch on April 3. Apple began shipping iPad in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the UK this past weekend. iPad will be available in nine more countries in July and additional countries later this year.

“Customers around the world are experiencing the magic of iPad, and seem to be loving it as much as we do,” said Steve Jobs, Apple’s CEO. “We appreciate their patience, and are working hard to build enough iPads for everyone.”

]]> http://allthingsd.com/20100531/two-month-two-million-ipads/feed/ 0 http://allthingsd.com/20100528/almost-famous-ben-zotto-of-cocoa-box-design/ http://allthingsd.com/20100528/almost-famous-ben-zotto-of-cocoa-box-design/#comments Fri, 28 May 2010 19:05:56 +0000 Drake Martinet http://voices.allthingsd.com/?p=25064 This week, we coffee’d at Coupa Cafe on the Stanford University campus to interview Ben Zotto. He’s the mind behind Cocoa Box Design, the app company responsible for Penultimate, a sleeper hit at the iPad App Store.

Who: Ben Zotto, lead everything (it’s a one-man shop).

Ben was at Microsoft and worked for Xoopit, the email-enhancement start-up acquired by Yahoo (YHOO).

What: Ben’s Penultimate brings a Moleskine notebook-style user interface to the iPad. He just released an update that allows you to rest your palm on the screen while writing, the same way you might with a pad and paper.

Why: It has been in the top tier of the Apple (AAPL) App Store for weeks.

Where: cocoabox.com (Web site); @cocoabox (Twitter); San Francisco (analog place)

Who Else: Apps like PaperDesk and Idea Boards use the pen-and-surface interface. Penultimate does drawing a little differently, though. Ben says it’s about the ink.

Five Stats You Won’t Find in His Facebook Profile:

Worst Job: I’ve been pretty privileged. I was a short-term photocopy runner for the Junior World Ice Hockey Championships in Geneva when I was in my teens. It wasn’t bad, but I don’t suppose it played to all of my strengths.

School Days: I grew up in Boston, but we moved to Switzerland during my high school days. I left eighth grade in Massachusetts, maybe never before having left the state. And within a month of arriving in Geneva, we were on a history class trip to Florence. It was awesome.

Geek Crush: There are a lot of guys from my Microsoft (MSFT) days who are my programming heroes. Guys like Tracy Sharpe and Dinarte Morais. I’m also a big fan of Wil Shipley.

It’s something about his combination of making beautiful and functional software and being fiercely independent–you know, a coffee shop denizen–that I’m attracted to. I actually found the designer I worked with on Penultimate through him.

Gadget Freak: I don’t carry a lot of gadgets. I am pretty picky about my work set-up, though. I use an Apple extended keyboard from the 1980s with the heavy-duty key switches that I rescued off eBay (EBAY) and the Microsoft optical IntelliMouse, which is, for my money, the best mouse developed so far.

Early Internet Memory: Right after I moved to Switzerland, I had a friend back in Boston who would email me. It was probably 1992, so it wasn’t really email. He found some dial-up number at MIT that had an open gateway.

It wasn’t obvious then how you would send an email to an internal address where my dad worked. It was one of those early u-u gateway/bang-this/bang-that things. He finally figured out how to get it to work, and my dad’s secretary would print out these letters from my friend Micah back in Boston.

That was how I heard the news from Massachusetts for a little while. Micah is a recent recipient of a Ph.D in computer science from UPenn. Not a fool.

---

Bio in 140 Characters

Ben had an international childhood. He has worked at Microsoft, Xoopit and Yahoo. He writes software that he hopes is beautiful and useful.

---

The Five Questions

How long have you been developing Penultimate? Why is it a killer app when so many others don’t seem to be?

Originally, I developed an app called Handwriting for the iPhone. There was potential there, with the touchscreen, to give a personal touch to messages through handwriting that wasn’t there before. For that reason, I spent a lot of time working on the graphics math for the ink.

I wanted the input to really resemble the handwriting of the user. It turns out that getting digital ink to look real is a really subtle thing. I spent a lot of time getting it to move right, getting it to feel smooth and whatnot. I finally got it where I was happy with it.

I released the app and basically, nobody bought it.

People responded well, but I realized that anyone who used the app would only use the surface that they could see within the bounds of the iPhone screen, even though I made it so that you could scroll around easily to get a bigger surface for writing.

Size was clearly an issue.

The iPad coming out meant that all of a sudden something that was just more of a single tool like handwriting could be scaled up into an app with real uses, and all it took was more screen real estate.

Steve Jobs, in his iPad release presentation, said that if they’d added a stylus, they’d have gotten it wrong. Does the success of your app fly in the face of that vision?

It’s funny, I’d never heard that until now. I didn’t watch that speech.

When the iPad came out, I got this vision of doctors walking around making notes, and it looked like there would be lots of use cases where a keyboard just wasn’t ideal.

People would need to input info standing up, while moving and in portrait mode. From the pictures, it wasn’t clear the keyboard would be great for that.

I developed Handwriting and Penultimate to be used with your finger, and that’s how I use them most. And I think Apple has good reasons for not pushing that. They could have developed handwriting recognition, but for them, that draws away from what they are really trying to sell.

Handwriting recognition is really hard, and as soon as you do that and say you are going to do it with a finger, you have people saying, “Why doesn’t this thing recognize my handwriting better?”–instead of marveling at all the amazing things you can do with the platform.

Have you faced issues from Apple, developing a popular app that goes a little against the grain?

I’ve heard complaints about the App Store, but I’ve had a pretty good experience so far. It usually takes them about 48 hours to approve updates for my stuff. That said, there are some hardware things I’ve run into.

A big one is trying to get palm rejection in my app so that you can place your hand on the screen to write and not have it register as a touch.

On the iPad, Apple doesn’t expose those drivers to developers. On the MacBook, for instance, you can hook in the driver and get all the data–the width of the touch, rotation, everything.

All that is closed off for the iPad, so getting the natural handwriting position has been really challenging. I’m playing with that right now because it’s been one of the loudest requests.

You are embracing this use case that Apple seems to wish wasn’t there. What other requests are you getting from users who want to be able to write on their iPads?

I think form-filling is a big one. There are apps that do that, but their ink technology isn’t as good as mine, which is why I think I get those requests even though there are other apps in the field.

I got this great email from the head of a police department, who said that out in the field there are all these forms he has to fill, and he wants to take them with him and not have to bring paper.

There are all kinds. I got mail from a roofing contractor who wants to be able to snap his drawn lines to a grid to draw quick plans.

I’ve got friends who are doctors who think it’s a great idea, but say they could never use it because of HIPAA.

There seems to really be a lot of uses for being able to write by hand and make notes in this very natural way.

You worked in regular software before you did this. What is fundamentally different about developing for this platform? What are people missing about that?

I think a big difference today is that people expect updates much faster than before. It’s fundamentally different than shrink-wrapped software world, where you would spend lots of time making and refining a product, packaging it and shipping it out.

Today, people expect to see some kind of update or fix every couple of weeks and they expect them to be free. If you don’t issue an update for a while, people might begin to think you are dead.

Because the mobile platform apps are these single-use things, there is a perception that they are smaller or more simple and that therefore there is an entitlement to future updates. It’s great for users but really hard for developers.

There’s this ever-present question: “How much software is ‘three dollars worth’?”

---

The In Living Color Interview

]]> http://allthingsd.com/20100528/almost-famous-ben-zotto-of-cocoa-box-design/feed/ 0 http://allthingsd.com/20100517/conan-obriens-angry-youtube-rant-and-his-five-favorite-youtube-videos/ http://allthingsd.com/20100517/conan-obriens-angry-youtube-rant-and-his-five-favorite-youtube-videos/#comments Mon, 17 May 2010 12:00:42 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=19539 YouTube is celebrating its fifth birthday by announcing that it is now generating a staggering two billion views per day. Context: In October, Google’s (GOOG) video site announced it had crossed the one billion views per day mark.

That’s a lot of videos! As usual, no word on financials, profitability, etc. But there is plenty of congratulatory back-slapping here and here.

Best part, by far: A brief anniversary message from Conan O’Brien, in which the comedian connects YouTube’s rise with America’s decline: “Nobody actually makes anything anymore. We’re all watching monkeys in propeller hats flush themselves down a toilet. And that’s why India is kicking our ass. And China, and pretty much everyone else. Switzerland, kicking our ass. Guam, way ahead of us.”

And he effectively sums up Web economics, or lack thereof:
“That’s not the point of the internet. It’s not to make money. It’s for someone you’ve never met, who’s a nerd, in Palo Alto, to make money.”

O’Brien also offers up his five favorite YouTube clips. Here are four of them. To see the fifth (something inscrutable and German) you’ll have to visit the site. If you’re time-pressed, definitely go with the cat.

]]> http://allthingsd.com/20100517/conan-obriens-angry-youtube-rant-and-his-five-favorite-youtube-videos/feed/ 0 http://allthingsd.com/20100507/ipad-goes-international-on-may-28/ http://allthingsd.com/20100507/ipad-goes-international-on-may-28/#comments Fri, 07 May 2010 13:08:14 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=40021 The international launch of the Apple iPad, which was delayed due to strong demand in the the U.S., will finally begin later this month.

Apple (AAPL) will start accepting pre-orders for both the 3G and Wi-Fi models on Monday, May 10. And on May 28, Apple will begin shipping units in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the U.K.

The launch will continue in July when the iPad arrives in nine additional countries: Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico, Netherlands, New Zealand and Singapore.

Apple has already sold more than one million iPads in the U.S. since the launch of the Wi-Fi-only model on April 3 and the 3G version on April 30. Given these sales figures and Apple’s supply issues to date, it will be interesting to see how the international rollout goes.

]]> http://allthingsd.com/20100507/ipad-goes-international-on-may-28/feed/ 0 http://allthingsd.com/20100420/3g-ipad-arrives-on-april-30/ http://allthingsd.com/20100420/3g-ipad-arrives-on-april-30/#comments Tue, 20 Apr 2010 12:50:49 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=38695 When Apple (AAPL) said the 3G-enabled version of its new iPad slate would ship by “late April,” it wasn’t kidding. In a press release issued moments ago, the company said the device will arrive at market and in the hands of U.S. customers who pre-ordered it on Friday, April 30.

The official announcement below.

iPad Wi-Fi + 3G Models Available in US on April 30

CUPERTINO, California—April 20, 2010—Apple® today announced that the Wi-Fi + 3G models of its magical iPad™ will be delivered to US customers who’ve pre-ordered on Friday, April 30, and will be available in Apple retail stores the same day starting at 5:00 p.m.

iPad allows users to connect with their apps and content in a more intimate, intuitive and fun way than ever before. Users can browse the web, read and send email, enjoy and share photos, watch HD videos, listen to music, play games, read ebooks and much more, all using iPad’s revolutionary Multi-Touch™ user interface. iPad Wi-Fi + 3G models are just 0.5 inches thick and weigh just 1.6 pounds—thinner and lighter than any laptop or netbook—and deliver up to 10 hours of battery life for surfing the web on Wi-Fi, watching videos or listening to music, and up to nine hours of surfing the web using a 3G data network.*

Apple retail stores will offer a free Personal Setup service to every customer who buys an iPad at the store, helping them customize their new iPad by setting up their email, loading their favorite apps from the App Store, and more. US Apple retail stores are also hosting special iPad workshops to help customers learn more about this magical new product.

Pricing & Availability
iPad is available in Wi-Fi models in the US for a suggested retail price of $499 for 16GB, $599 for 32GB and $699 for 64GB. The Wi-Fi + 3G models will be available on April 30 in the US for a suggested retail price of $629 for 16GB, $729 for 32GB and $829 for 64GB. iPad is sold in the US through the Apple Store® (www.apple.com), Apple’s retail stores, most Best Buy stores, select Apple Authorized Resellers and campus bookstores. AT&T is offering breakthrough 3G pre-paid data plans for iPad with easy, on-device activation and management.

iPad will be available at the end of May in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the UK. Apple will announce international pricing and begin taking online pre-orders for iPad on May 10.

]]> http://allthingsd.com/20100420/3g-ipad-arrives-on-april-30/feed/ 0 http://allthingsd.com/20100326/almost-famous-chris-messina-of-google/ http://allthingsd.com/20100326/almost-famous-chris-messina-of-google/#comments Fri, 26 Mar 2010 20:09:08 +0000 Drake Martinet http://voices.allthingsd.com/?p=21984 In a feature of “Almost Famous” we’ve dubbed “Need to Know,” All Things Digital talks with top players inside tech companies–much as we talk to emerging and innovative entrepreneurs–who are perhaps not as prominent as their influence suggests, but who should be.

This week: We took a trip to a little company called Google (GOOG) to talk with Chris Messina, Google’s open Web advocate. Openness? Google? We couldn’t pass this up.

Who: Chris Messina

What: Open Web advocate

Why: Chris has been in early on all kinds of pioneering open Web projects. He helped run Spread Firefox–Mozilla’s community marketing effort–co-founded the BarCamp user-generated un-conferences, and single-handedly invented the Twitter hashtag: #. No joke. He just made the move to the search giant.

Where: Factory Joe (blog); @chrismessina (Twitter); Googleplex (analog place)

Who Else: Open standards are Messina’s forte, but he’s been preaching the gospel of openness to many Google teams.

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Five Stats You Won’t Find in His Facebook Profile:

Worst Job: You know, I’ve led a pretty padded life, but I guess my worst one was when I was a janitor in a print shop while living in Switzerland. I was living in an attic in this tiny town to attend this Swiss design school–which I didn’t like at all–and this is how I made my meager living while there.

Has a Geek Crush on: I first started learning Web design by reading Jeffrey Zeldman’s book. There are lots, though. More related to the stuff I’m doing now, I think John Panzer is a big unsung hero, he’s the one pushing the Salmon stuff (Google’s open comment project) forward.

Gadget of the Moment: I still love my first-generation Apple (AAPL) iPhone. It doesn’t have 3G and it’s slow as molasses, but I really like the form factor, the metallic finish, everything. It also allows you to take screenshots, which is the one thing really missing from Android.

Biggest Difference Being at Google: Even more email, if you can believe it.

Design Geekiness: My favorite font ever is Pennsylvania by Christian Schwartz. I also like Bello, Flama and Tungsten.

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Bio in 140 Characters

Born in New Hampshire, he trained as a communication designer at Carnegie Mellon. He left for California and has been into the open Web ever since.

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The Five Questions

What does being an open Web advocate at Google mean? Does it feel like you are working for “The Man”?

Generally what I’m doing here is a lot like what I used to do, actually. I have contact with a lot of different developer teams, and I talk to them about how they can use open standards in their work. Right now though, mostly I’m working on Google Buzz, doing developer relations and helping design the Buzz APIs. We’re trying to create these technologies based on stuff from the grassroots communities where these things already exist, as opposed to inventing our own standards. We document everything on the Google code site and then we just talk about it. It’s a little bit of an evangelism role, in the sense that we have to go out and be a part of the community and be a router for information back into Google.

Big companies seem to have their own agendas and needs to be met, and what I’m realizing now is that a lot of times, they also don’t have time or a way to go out and find the places where these needs are and these tools are already being developed. There are a lot of people who are really hungry for this information, but maybe just didn’t know where to go.

So how do you see Google Buzz as a part of the social Web landscape, now that you’ve been on the inside?

We approached it from a “pieces that are loosely joined” perspective so that we can spit out smaller communities that are self-sufficient, rather than one big monolithic project like Facebook Connect. We built Buzz so that Google can be one place that hosts the underlying technologies, but the capabilities can be spread and used by anyone who wants that social functionality.

The goal is to create a much larger social Web that is dispersed, as opposed to another monolithic silo that sort of sucks in a lot of activity and doesn’t let anything out. Facebook is just the most recent silo, there have been lots in the past. AOL (AOL). Prodigy. A lot of times they don’t mean to be that, but it just happens.

How do you see the competing philosophies of openness and proprietary technology and information at play on the social Web?

I think the way that I look at it is that facilitating choice is actually a good way to ensure you remain competitive. Also, right now, the social Web is in such infancy that competing on what is available now seems so premature. I’d rather see us spend the next five or 10 years building out the social Web so that we have good standards for identity, good standards for authentication and open ways to bring your friends with you to any site on the Web.

Because we’ve never had this social data before, there’s this mentality that it’s solid gold, and we should be hoarding it keeping it from everyone and only letting out little bits. In reality, I think markets work best when there is a flow of data. If I can’t take my data out of one network and move it into another, like I can move credit card balances from one to the other, then I think we are inhibiting the types of things we should be building, which will be much richer.

I already sign into 10 Google products a day with the same account. Is my Google account going to become more like Facebook Connect?

Well, the technology is there, but it’s more a question of motivation. It’s actually a problem I’ve been working on for the last two or three years. The first question is, how do you provide choice to people when they want to log in (what do you ask for)? The other question is, why would they use any one service or other, given the choice?

Facebook has solved that problem by just eliminating the choice. You just choose Facebook Connect, click a button, and it will be fine. And it works pretty well.

A barrier for us is that our tools are built on standards like openID and OAuth that were designed by people who cared a lot more about privacy. As a result of that, a technology based on openID doesn’t automatically come with all the social data that make modern applications work. We are actually working with Facebook on this problem, because it turns out the hardest thing to figure out is just what to put on the user interface–how do you quickly ask people what they’d like to share? We want to avoid making Web sites look like the side of a Nascar.

Google’s push into mobile is based on open standards. How do you see that proliferating??

You know, even the iPhone is actually just a platform that interacts with a bunch of open standards and accepted systems. It relies on 3G, sends email, SMS, takes pictures that are compressed and connects to other devices via Bluetooth–they are all open standards and protocols that have enabled these great tools. I think people are going to want more. I’m intrigued by Android, and it, plus the devices it runs on, are really getting there.

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The In Living Color Interview

]]> http://allthingsd.com/20100326/almost-famous-chris-messina-of-google/feed/ 0 http://allthingsd.com/20100305/ipad-goes-on-sale-april-3-pre-orders-begin-march-12/ http://allthingsd.com/20100305/ipad-goes-on-sale-april-3-pre-orders-begin-march-12/#comments Fri, 05 Mar 2010 13:29:52 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=36177 So much for those rumored iPad delays and production bottlenecks. Apple said this morning that its new tablet device will arrive at market on Saturday, April 3, with pre-orders beginning March 12.

Initially, only Wi-Fi models will be available, with their 3G counterparts to follow later in the month. Late April will also see the device going on sale in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the U.K.

Given the time between the launch date of the Wi-Fi-only and 3G versions, will any early adopter be patient enough to wait for the latter?

Below, the press release announcing the iPad’s on-sale and shipping dates (Caution, Press release: May contain unnecessary superlatives, profound lack of objectivity).

iPad Available in US on April 3

Pre-Order on March 12

CUPERTINO, Calif., March 5/ — Apple® today announced that its magical and revolutionary iPad will be available in the US on Saturday, April 3, for Wi-Fi models and in late April for Wi-Fi + 3G models. In addition, all models of iPad will be available in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the UK in late April.

Beginning a week from today, on March 12, US customers can pre-order both Wi-Fi and Wi-Fi + 3G models from Apple’s online store (www.apple.com) or reserve a Wi-Fi model to pick up on Saturday, April 3, at an Apple retail store.

“iPad is something completely new,” said Steve Jobs, Apple’s CEO. “We’re excited for customers to get their hands on this magical and revolutionary product and connect with their apps and content in a more intimate, intuitive and fun way than ever before.”

Starting at just $499, iPad lets users browse the web, read and send email, enjoy and share photos, watch videos, listen to music, play games, read ebooks and much more. iPad is just 0.5 inches thick and weighs just 1.5 pounds-thinner and lighter than any laptop or netbook-and delivers battery life of up to 10 hours.*

iPad’s revolutionary Multi-Touch™ interface makes surfing the web an entirely new experience, dramatically more interactive and intimate than on a computer. You can read and send email on iPad’s large screen and almost full-size “soft” keyboard or import photos from a Mac®, PC or digital camera, see them organized as albums, and enjoy and share them using iPad’s elegant slideshows. iPad makes it easy to watch movies, TV shows and YouTube, all in HD, or flip through the pages of an ebook you downloaded from Apple’s new iBookstore while listening to your music collection.

The App Store on iPad lets you wirelessly browse, buy and download new apps from the world’s largest app store. iPad includes 12 new innovative apps designed especially for iPad and will run almost all of the more than 150,000 apps on the App Store, including apps already purchased for your iPhone® or iPod touch®. Developers are already creating exciting new apps designed for iPad that take advantage of its Multi-Touch interface, large screen and high-quality graphics.

The new iBooks app for iPad includes Apple’s new iBookstore, the best way to browse, buy and read books on a mobile product. The iBookstore will feature books from the New York Times Best Seller list from both major and independent publishers, including Hachette Book Group, HarperCollins Publishers, Macmillan Publishers, Penguin Group and Simon & Schuster.

The iTunes® Store gives iPad users access to the world’s most popular online music, TV and movie store with a catalog of over 12 million songs, over 55,000 TV episodes and over 8,500 films including over 2,500 in stunning high definition. All the apps and content you download on iPad from the App Store, iTunes Store and iBookstore will be automatically synced to your iTunes library the next time you connect with your computer.

Pricing & Availability

iPad will be available in Wi-Fi models on April 3 in the US for a suggested retail price of $499 for 16GB, $599 for 32GB, $699 for 64GB. The Wi-Fi + 3G models will be available in late April for a suggested retail price of $629 for 16GB, $729 for 32GB and $829 for 64GB. iPad will be sold in the US through the Apple Store® (www.apple.com), Apple’s retail stores and select Apple Authorized Resellers.

iPad will be available in both Wi-Fi and Wi-Fi + 3G models in late April in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the UK. International pricing will be announced in April. iPad will ship in additional countries later this year.

The iBooks app for iPad including Apple’s iBookstore will be available as a free download from the App Store in the US on April 3, with additional countries added later this year.

]]> http://allthingsd.com/20100305/ipad-goes-on-sale-april-3-pre-orders-begin-march-12/feed/ 0 http://allthingsd.com/20100129/schmidt-davos/ http://allthingsd.com/20100129/schmidt-davos/#comments Fri, 29 Jan 2010 18:17:55 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=33905 Google doesn’t want to leave China. It just wants to fix China.

Speaking at the World Economic Forum in Davos, Switzerland, today, CEO Eric Schmidt said he really doesn’t want to shutter Google’s Chinese operations, he would just like the company to have more of a role in shaping its domestic policy.

“We like what China is doing in terms of growth…we just don’t like censorship,” Schmidt said. “We hope that will change and we can apply some pressure to make things better for the Chinese people.”

Asked later what it might take for Google (GOOG) to remain in China–aside from pull more Internet users than the total population of the United States–Schmidt replied, “We would very much like to stay in China. We would very much like the censorship we oppose to improve in China.”

Sadly, that doesn’t seem likely to happen anytime soon. Certainly, the public and confrontational manner in which Google has chosen to approach the issue has not gone over well with the Chinese government, which seems unlikely to capitulate. Meanwhile, Google rivals are making it known that they are perfectly willing to step in if and when the search sovereign leaves the country.

Consider this treatise on Sino-Redmondian relations from Microsoft (MSFT) CEO Steve Ballmer:

Engagement in China and around the world is very important to us, in part because we believe it accelerates access to 21st century technology and services and helps provide the widest possible range of ideas and information. We have done business in China for more than 20 years and we intend to stay engaged, which means our business must respect the laws of China. That’s true for every company doing business in countries around the world: we are all subject to local laws.
 
At the same time, Microsoft is opposed to restrictions on peaceful political expression, and we have conversations with governments to make our views known.  In every country in which we operate, including China, Microsoft requires proper legal authority before we remove any Internet content; and if we remove content, we give users notice.

]]> http://allthingsd.com/20100129/schmidt-davos/feed/ 0 http://allthingsd.com/20100129/netflix-no-ipad-early-adopter/ http://allthingsd.com/20100129/netflix-no-ipad-early-adopter/#comments Fri, 29 Jan 2010 17:00:14 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=33931

]]> http://allthingsd.com/20100129/netflix-no-ipad-early-adopter/feed/ 0 http://allthingsd.com/20090217/let-it-snow-let-it-snow-let-it-snow3d-digital-ski-slopes-even-cooler/ http://allthingsd.com/20090217/let-it-snow-let-it-snow-let-it-snow3d-digital-ski-slopes-even-cooler/#comments Tue, 17 Feb 2009 20:00:06 +0000 Kara Swisher http://kara.allthingsd.com/?p=9835 Wishing I had had the foresight to head up into the Sierras in California before they finally got a ton of snow dumped on them this past week, I was fiddling around the Web looking for various ski sites as a way to approximate being there.

And, like all things in mapping, the best way to see slopes is now in 3-D, the technology that is going to become more and more prevalent on the mostly flat Internet in the years ahead–and well beyond the more obvious applications.

Along with touchscreen technologies that will come much sooner to the general computing experience, 3-D is a feature that adds amazing depth and resonance to the online experience, especially as more information is added over time.

If you don’t think so, here are two of the 23 slopes that Ski.com has up now, for example. While they do not show falling snow (yet!), click on through for a very cool experience of looking at and manipulating a mountain before schussing down it–or, in my case, tumbling down it.

Park City, Utah:

Zermatt, Switzerland:

]]> http://allthingsd.com/20090217/let-it-snow-let-it-snow-let-it-snow3d-digital-ski-slopes-even-cooler/feed/ 0 http://allthingsd.com/20081127/european-head-toby-coppel-departs-yahoo/ http://allthingsd.com/20081127/european-head-toby-coppel-departs-yahoo/#comments Thu, 27 Nov 2008 16:01:38 +0000 Kara Swisher http://kara.allthingsd.com/?p=7005

Yahoo is losing yet another top executive–Toby Coppel, its EVP and managing director of Europe and Canada, is set to announce today that he is stepping down.

The departure, which has been in the works for months, is not related to the recent news that Yahoo CEO Jerry Yang is also relinquishing his job as soon as the company completes its search for another CEO.

Coppel’s job covers the major Western European markets (United Kingdom, France, Germany, Italy, Spain, Scandinavia), as well as Canada, for Yahoo (YHOO).

His successor will be Rich Riley, who is currently SVP of Europe’s Advertiser & Publisher Group, which put him in charge of all revenues for the division. Riley, who came to Yahoo a decade ago, was previously the head of Yahoo’s Small & Medium Business Group in the U.S.

Coppel, who came to Yahoo with former Yahoo CEO Terry Semel in 2001, has run European operations for Yahoo for 18 months. And most of his time has been spent restructuring and making massive cuts.

The unit will have about one-third of the people as when Coppel arrived by the first quarter, after the current round of layoffs. And, if you include Yahoo’s sale of the comparison-shopping site Kelkoo last week, the cuts total 45 percent of its former size.

Coppel also shepherded the move of Yahoo’s European HQ to Switzerland from higher-priced London. Most of its top managers are now located there, although London remains an important Yahoo outpost, since it is the largest online ad market in Europe.

Coppel will remain with Yahoo until the end of the first quarter to ensure a smooth transition. He told BoomTown in an interview that his future plans are undetermined, except to welcome his third child into the world very soon.

“I have been transitioning our European business, restructuring it and making it stronger, as Yahoo is moving to product development on a global platform,” said Coppel. “While there is more work, there is now a strong team in place, focused on going forward and it needs to spread its wings.”

Coppel noted, although a lot of his tenure was occupied by restructuring the European unit, that “we have taken display advertising market share from MSN, AOL and other competitors in almost every one of our European markets in 2008 and we grew our Canadian business over 50 percent this year.”

And, indeed, Yahoo’s online display advertising business is stronger in Europe, although subject to the same vicious economic downturn that has hit the U.S. market.

In addition, Yahoo–and everyone else–lags well behind Google (GOOG) in the more lucrative search business in Europe, even more so than in the U.S., forcing competitors like Yahoo to streamline to compete.

That has meant layoffs, but also re-architecting Yahoo’s product development toward a global model to cut costs and also getting rid of some noncore assets like Kelkoo.

It was revealed last week that Kelkoo was sold to a U.K.-based private equity firm called Jamplant, at a reported discount from what Yahoo paid for it–$576 million–in 2004.

Now that all these kinds of major changes were made, Coppel said, it seemed a good time for him to go too.

“My value add-was not what it was going forward,” said Coppel, who noted that several layers of management in Europe had been collapsed in his tenure. “If we are streamlining and we mean it, it has to also start at the top.”

]]> http://allthingsd.com/20081127/european-head-toby-coppel-departs-yahoo/feed/ 4 http://allthingsd.com/20080516/orange-iphone/ http://allthingsd.com/20080516/orange-iphone/#comments Fri, 16 May 2008 20:40:26 +0000 John Paczkowski http://digitaldaily.allthingsd.com/20080516/orange-iphone/ Apple (AAPL) is expanding its iPhone empire with near Alexandrian initiative.

Today, the company struck an extensive deal with France Telecom’s (FTE.PA) Orange wireless carrier to distribute the device in more than 10 markets in Europe, the Middle East, Africa and the Caribbean.

Orange, which became Apple’s exclusive carrier partner in France last year, will soon sell the iPhone in Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia and Switzerland, as well as the company’s African markets.

Interestingly, a few of these countries already have carriers with iPhone distribution agreements. It would seem then that Apple is indeed moving away from the exclusive iPhone distribution arrangements it’s been inking, as many suggested last week when Vodafone (VOD) and Telecom Italia (TI-A) both announced plans to bring the iPhone to Italy.

In any event, Apple’s deal with Orange will expand the iPhone’s reach to about 40 countries and will effectively quadruple its total addressable market. “Currently Apple’s total addressable market includes 153 million subscribers in six countries with AT&T (T), T-Mobile Germany and Austria, O2, and Orange,” Piper Jaffray’s Gene Munster observed in a research note today. “These announcements increase those numbers to 575 million subscribers in 42 countries, including recent agreements with Vodafone, SingTel, America Movil (AMX), Swisscom and Orange. … To give some context to these numbers, Apple sold 3.7 million iPhones in 2007 into a total addressable market of 148 million subscribers (or 3% penetration). Taking the recent carrier announcements into consideration, we are modeling for Apple’s penetration rate to remain at 3% in 2008 and double to 6% in 2009.”

]]> http://allthingsd.com/20080516/orange-iphone/feed/ 0 http://allthingsd.com/20080409/ddv20080409/ http://allthingsd.com/20080409/ddv20080409/#comments Wed, 09 Apr 2008 18:00:56 +0000 John Paczkowski http://digitaldaily.allthingsd.com/20080409/ddv20080409/

[ See post to watch video ]

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