<![CDATA[Gawker: valleywag, jon rubinstein]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, jon rubinstein]]> http://gawker.com/tag/valleywag/jonrubinstein http://gawker.com/tag/valleywag/jonrubinstein <![CDATA[Palm Now Officially the Anti-Apple]]> The image associated with this post is best viewed using a browser.Palm has become the premiere sanctuary for Steve Jobs refugees. As if to cast aside any doubt over this fact — and to underline that it's working — the smartphone maker tonight promoted former iPod chief Jon Rubinstein to CEO.

He's just one Jobs ex among many. A quick tally:

Palm's hiring spree grew so annoying to Jobs that he supposedly called up Rubinstein and screamed at him.

Jobs had reason to be agitated. Rubinstein successfully instigated a crash development program that, somehow, conjured an incredibly slick device, the Pre, from a company whose technology had been languishing for years.

In the words of tech blogger John Gruber, "it's quite possible that they have done everything right since" the launch of the iPhone. "Palm designed, built, and released the Pre, WebOS, and an app store, all in about two years."

The Palm team's experience at Apple no doubt helped along the way; it would appear some very detailed knowledge of Apple's iTunes helped allow the Pre to magically sync with the media software, an impressive feat.

The Pre, just released, promises to give Apple's iPhone the most worrisome competition it's yet seen.

And now Rubinstein has his prize, taking control of the whole company from 16-year Palm veteran Ed Colligan. If Jobs needed a catalyst to get him fired up about his return to the helm of Apple later this month, he sure got it.

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<![CDATA[Did Apple's Ex-CFO Rat Out Steve Jobs?]]> Forbes has a cover story on how Steve Jobs got himself in hot water with the SEC over stock options. The magazine is part-owned by former Apple CFO Fred Anderson. Do the math.

Amid SEC charges that Apple management had shifted the dates of stock options to benefit executives, including Jobs, Anderson, and former general counsel Nancy Heinen, the company took an $84 million charge in 2006. Jobs and Apple settled a shareholder lawsuit for $14 million, but avoided trouble with the SEC. Anderson and Heinen paid $3.5 million and $2.2 million in fines respectively, without admitting guilt.

The episode caused a major rift between Anderson and Jobs. Anderson had left Apple in 2004, but stayed on the board until the scandal led to his resignation in 2006. In the meantime, Anderson had joined Elevation Partners, a private-equity firm in Silicon Valley. As the stock-options scandal grew, Anderson and Jobs pointed fingers at each other, at one point issuing dueling press releases shifting the blame. Anderson has long maintained that Jobs knew more about the options chicanery than he has let on.

Elevation, which also counts famed Valley investor Roger McNamee and U2 frontman Bono as partners, backed Palm, a rival to Apple in the smartphone business, and recruited a former top Apple executive, Jon Rubinstein, as Palm's executive chairman. No one in Silicon Valley honestly believes this is a coincidence.

Forbes is another Elevation investment. The May 11 story, written by Bill Barrett and teased on the cover, centers on the 118-page transcript of a three-hour interview Jobs gave SEC examiners trying a case against former Apple general counsel Nancy Heinen, which the magazine obtained at some difficulty through a Freedom of Information Act. In the interview with SEC examiners, Jobs complained that the board was not looking out for him and he had to ask for a generous stock-options package, but maintained that he was largely unaware of the backdating and ignorant of the accounting consequences. (Backdating is not illegal by itself, but requires notice to shareholders and a charge to earnings, neither of which Apple undertook at the time it backdated options.)

Excellent journalistic work on Barrett's part. But here's the question: How did Forbes know precisely which document to ask for? It always helps to have well-connected sources. And it's hard to imagine who would be better placed to know the details of the case than Anderson.

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<![CDATA[The Next Gadget Gods]]> This past year, Bill Gates and Steve Jobs began to focus on priorities other than tech. Who will fill their winged sandals and become the new Gadget Gods?

These next gods will, like their predecessors, be people whose professional and private lives, and even personal appearance, are of equal importance to hordes of obsessed nerds. They're people whose creativity and willpower are presumed to steer the course of personal technology, with legions of engineers and programmers and designers and manufacturing experts carrying out their vision. The key is putting themselves out for all the public to behold, with the hopes of becoming revered by apostles who buy anything they unveil. Seeing as we're running low on golden calves, let's check out the current options:

APPLE
Tim Cook
People say Cook is the man who makes the beautiful products turn into a beautiful pile of money, and he actually took over Apple when Jobs was recovering from his first surgery. A southern gentleman, avid cyclist, iron-fisted boss, mysterious loner, emotionless decider—man, Cook is so easy to reduce to two-word stereotypical descriptors, he's bound for godhood. Even his name comes packaged in a suave but unforgettable two syllables. The catch of course is that he can't ascend the mighty throne of Apple until the big cheese retires or bows out due to health. Cook's trod the boards at Stevenotes before, but now he's holding back—or being held back—perhaps because if he becomes big boss, he'll need a fresh start. All eyes not on Steve are on this guy. Can he fill the shoes left open and be the forceful visionary that Jobs is?
Chance of Godhood? 75% with a few variables we'd rather not think about

Phil Schiller
Schiller has helped sell Apple products since forever, but the general impression is that he's best used as a right-hand man, a Boy Wonder to the real Batman. The mullet/beer gut combo probably doesn't do wonders for his public image, either, though "death diving" from 30 feet up like he did back in '99 isn't a bad way to entertain the fanboys. It's easy to forget that Phil used to be involved in product development, including notebooks, and some even credit him for the addition of the iPod's clickwheel. We also hear that the man can kick some ass behind the scenes. He might have what it takes to be the next product don of Apple, but the current hierarchy won't make it easy for him.
Chance of Godhood? 35% assuming the Apple board is thinking like we're thinking

MICROSOFT
Steve Ballmer
The Monkey Man act may work to get attention, to rally your troops and put fear in your enemies, but it's too easy to make fun of in Photoshop. This kind of attention has taken Ballmer pretty far along the road to godhood, but the public doesn't often see the quieter, shrewder Ballmer that we know exists. The key is this: He is not a code nerd, but a Harvard-educated marketing-and-sales guy. Being able to climb inside the mind of the Average Joe, typically oriented around useful features instead of sheer software power, is what Microsoft needs to limit bloat in product design. If Windows 7 is a success, we'll see the Bruce Banner in this Hulk, but if it's not, it'll be "BALLMER SMASH!!!!" and the end of Microsoft.
Chance of Godhood? 85% assuming Windows 7 erases the terrible memory of Vista

Robbie Bach
Microsoft's Entertainment and Devices boss has Xbox, Zune, Media Center and a lot of other potentially tasty toys in his workshop, and he's rumored to be the man who would replace Ballmer. What's most important here? His group accounts for most of the Microsoft products that don't suck. Word is, though, that the limited profitability of his group, today, limits the amount of respect he gets internally. We say the rest of the company should stop and see what he's doing right. He certainly understands the art of the keynote, strutting around and working the crowd with the shoulders-forward energy of a college football coach. He may be too good at sticking to the script, though. His cautious replies may be good for stockholders, but you can't inspire the masses without a little bit o' crazy.
Chance of Godhood? 70%, higher if he is heard matter-of-factly admitting that Windows Mobile sucks

SONY
Sir Howard Stringer
Usually you get the "sir" appended to your name after you live a wild and crazy life in the public eye, but this guy is only more and more in the spotlight each year. When he talks he brings delightful controversy and charisma, but he doesn't do enough with big crowds. How come no gloaty Blu-ray victory dance party? Chilling with Charlie Rose isn't a direct path to divinity, but showing up with Tom Hanks at CES is a start. Still, Sony needs to regain gadget clout, not remind the world that it's a piracy-fearing movie maker. One thing he has done is give the Japanese firm a leader who isn't afraid to lay off when the company is bloated with employees not pulling their weight, unlike traditional Japanese CEOs. And he encourages Japanese employees to work abroad to increase their understanding of the customers of the world. But he's also been working hard to unify the company's software and hardware development not only in each division, but across product groups. Only Apple and Microsoft have done this successfully, but Sony is actually making progress here, behind the scenes.
Chance of Godhood? 45% because it might just be too late for the guy—or for Sony

GOOGLE
Larry Page/Sergey Brin
Never mind that Google keeps more products in beta than it launches or that these two are tech titans already on the web. Their first foray into hardware was received lukewarmly. But Google is here to stay, and no matter what CEO Eric Schmidt does, these two dudes' faces will be the ones people think of. The last 60 years of tech are full of dynamic duos—Woz and Jobs, Hewlett and Packard, etc.—but unless you've got the timing of Martin and Lewis, it's hard to pull off a tandem keynote. It definitely doesn't help when you show up late wearing rollerblades. We just hope that the company can give their Android division the support it needs to compete with the companies full time in the gadget game, because Android is not only disruptive, but it's the ammo that the phone makers need to compete with the all-in-one giants from Redmond and Cupertino.
Chance of Godhood? 60%, could go up if they release more products, or undergo the operation Damon and Kinnear had in Stuck On You

ASUS
Jonney Shih
Netbook-revolutionary Asus is probably the company (companEee?) doing the most with Apple's old mantra, "think different." Their stuff coming out of Taiwan is radical and fun, and Jonney Shih, little known in these parts, is the sole capitano up top. He's not afraid to rock the microphone, but he keeps doing it at other people's events. Asus also makes a lot of notebooks for competitors, and has hardware expertise to spare. But in terms of software, they're still limited by a strong dependence on Windows for their notebooks. As for their weak brand presence in the mainstream: Dude, you got some cash, time to throw bigger parties of your own, and not just ones timed with CES. And take another page from Apple: Learn how to keep products secret until they're finished and shipping.
Chance of Godhood? 40%, more if he finds a good barber and a dealer of fine turtlenecks and presentation sweaters

HTC
Cher Wang
The phone maker who first teamed with Google and launched the T-Mobile G1 is chaired by, yep, a lady! Named Cher! Cher actually got her start selling computer parts for a computer company, and helped found HTC to realize the vision of the true handheld computer. Even if the HTC brand is only a few years old to consumers, HTC has been making phones for other companies for a while: One in every six phones sold in the US this year were from her factories. They'll grow stronger now that Android is here and Windows Mobile is (hopefully) in a period of major improvement, but their branding and design is still a bit on the chunky side. From the looks of her official corporate portrait, she could probably use a queer eye or two—I know I sound like a dick here, but sadly society does judge women more harshly than men on personal appearance. My guess is that as someone who emphasizes being a "devout Christian" in her bio, she'd probably frown on the whole "tech god" thing anyway.
Chance of Godhood? 30% since Cher's probably too busy to take our advice anyway—she also runs the chipmaker VIA

PALM
Ed Colligan
Colligan's generally stormy course at Palm's helm finally reached some smooth waters: He just unveiled Pre, a fresh, attractive take on the smartphone, bolstered by healthy chunks of DNA from Apple and other new smartphone platforms via the talent they aggressively poached. He's proven he has what it takes to make big aggressive changes with this handset, and get the right talent in place, just like Steve Jobs would. And Colligan isn't afraid to make bold brash statements, a requirement of godhood. But can he go all the way? Currently, his problem is with presenting—he's not all that memorable, which might actually be good if you're the guy who introduced the world to the Palm Foleo.
Chance of Godhood? 15% cuz did I mention he believed, not long ago, that Foleo would "redefine how people work"?

Jon Rubinstein
The "executive chairman" to Colligan's "president and CEO," it's hard to tell if Rubinstein is sitting on the throne or next to it. He has our vote. The man in charge of bringing about Palm's would-be salvation, the Pre, previously at Apple led development of the frickin' iPod (maybe you've heard of it), and has actually out Apple'd Apple with the UI in this new handset. And Rubinstein's team is one of the only in the world that is capable of revolutionizing cellphone operating systems. He keeps it cool on stage, reminding us a little of Nintendo's amiable US boss, Reggie Fils-Aime. And his more than passing resemblance to Jeff Goldblum is a plus, too. One limitation in Palm that both Rubinstein and Colligan have to face: Palm will never build an end to end personal tech environment the way Apple and Microsoft can, even if they are on par in terms of making interfaces from the future.
Chance of Godhood? 55%, but sky's the limit if he can shoo Colligan away

AMAZON
Jeff Bezos
Bezos already was a god—a dotcom god. Many of those other former household names are now mercifully forgotten, but Bezos still shows up on magazine covers. He recently heralded in the eradication of DRM from online music retailers to the applause of paying music customers. But what really surprised us, and earned him a place on this list was that he had such a grand vision of what the ebook should be—the replacement of the book—and the funding and drive to make it happen. But he should do more live appearances to drum up more mainstream excitement over software initiatives like the DRM-free MP3 store and video on demand. And he needs to keep Kindles in stock long enough for people to buy them. Most importantly, he's finally learning that tech gods are only as good as their next products. Just because Bezos understands books on a deep level doesn't mean he'll ever be able to do any other type of gadget besides E-Ink tablets. That's ultimately limiting when it comes to building next-generation personal tech ecosystems. In the meantime, where's my Kindle 2?
Chance of Godhood? 30% if he does more bragging in person, though that braying laugh of his could be a liability

DEKA/SEGWAY
Dean Kamen
Back in 2001, the rumor mill leading up to the launch of the Segway rivaled any Apple buzz. Before the product was even seen, people wrote about it being civilization-changing, and as important as the internet. Kamen's been on a roll (get it?) since then, not just developing the police Segway, the golf Segway and some kind of Segway footstool, but also perfecting a water purifying technology and a truly robotic prosthetic arm, all while greening up his own private island. He's did it all with few mainstream public appearances: Showing up at All Things D with a video of the robot arm—not the real thing—was a misstep in our minds, but appearing on Colbert with a working water purifier was definitely a sign of publicity (and worship) to come. If he can invent something for the gadget lovers of the world that is as bright and thoughtful and life changing as his humanitarian tech, he'd become the Jobs that Jobs wishes he was.
Chance of Godhood? A tragic 45%, seriously, this guy is Q, MacGyver and Hank Scorpio rolled into one—why isn't he a god already?

FACEBOOK
Mark Zuckerberg
The sad fact is that our whole world is shifting over from hardware to software. Sure, Kamens are still needed to make sure there's progress in mechanical devices, but our toys are less and less mechanical. Facebook is probably the best example of an internet platform that has stolen thunder from the gadget world. Trouble with Facebook is that it's big and amorphous, and the charming Zuckerberg needs a second act to propel him into the heavens. Still, he's like 13, with his whole life and a lot of money ahead. He'll think of something. But to be a Gadget God, he'll have to always depend on the hardware of others. At least until we have browsers in our brains with which we can access our social networks with.
Chance of Godhood? 95% even if it doesn't happen in my lifetime

These are all strong candidates, but the assumption is that there will, in fact, be new gadget gods. Maybe, like the ancient gods themselves, our new era doesn't have as much use for them. Maybe it's not just the transition to software, but the shift from bright ideas to massive team efforts. Or maybe Jobs and Gates are the kinds of guys that only come along once a century, and we're gonna have to wait a little longer for something that divine.

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<![CDATA[Palm Copies Apple's Ego Trip]]> No Silicon Valley company is more arrogant than Apple. But Palm, the smartphone maker, is trying to copy Steve Jobs's knack for hubris — as well as everything else about its rival.

Anyone would be forgiven for thinking the Palm Pre, the long-overdue smartphone unveiled today in Las Vegas at the Consumer Electronics Show, is an obvious iPhone wannabe, with a similar shape, a touchscreen, and a fancy built-in Web browser.

It was built, too, by a cast of Apple hand-me-downs: Chairman Jon Rubinstein was formerly Jobs's right-hand man, and Palm's campaign of hiring away Apple employees grew so large, and so obvious, that Jobs is said to have called Rubinstein and screamed at him. Palm is backed by Elevation Partners, a private equity firm where former Apple CFO Fred Anderson now works. (The rivalry might explain why Jobs is no longer seen palling around with Bono, who's also a partner at Elevation.)

But the most glaring way in which Palm has rebuilt himself in Apple's image is in its executives' raging superiority complex. Take this exchange between AllThingsD blogger Peter Kafka and Palm CEO Ed Colligan:

The biggest unknown is price, which went unmentioned during the demo. My assumption is that Palm would try to take market share by coming in significantly lower than the $200 or so Apple wants for its iPhone. But when I ran that theory by Palm CEO Ed Colligan, he looked at me liked I’d peed on his rug. “Why would we do that when we have a significantly better product,” he asked, then walked away.

Jobs could not have put it better himself. But Palm, which has struggled for years, has far more to prove before Colligan and Rubinstein can act so cock of the walk.

(Photo by Corinne Schulze/CNET News)

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<![CDATA[Bono and Steve Jobs No Longer BFFs]]> What did Steve Jobs do to his old buddy Bono? The Irish rock star, once the Apple CEO's adoring buddy, is funding the most credible threat to the iPhone yet.

Bono is a founder of Elevation Partners, the Silicon Valley private-equity firm named after the U2 song. And Elevation just sank another $100 million into Palm, the troubled smartphone maker. Palm, which waited too long to switch its product lineup from electronic organizers to souped-up cell phones and whose Treo smartphone is showing its age, lost more than $500 million in the most recent quarter. Bono's firm now owns 39 percent of Palm.

He's also lassoed several former Apple executives into the Palm corral. Fred Anderson, a former Apple CFO and board member, is an investor at Elevation. Jon Rubinstein, a hardware executive who served as Jobs's right-hand man at Apple, resigned in 2006 — one day before the company's 30-year anniversary — and joined Palm a year ago. Rubinstein, the company's executive chairman, is working on a new family of devices that will compete with Apple's iPhone; the big unveiling is planned for the CES computer trade show next month.

The last CES was also the scene of the latest dig by Bono at Jobs. In January 2008, he appeared in a farewell video for Microsoft chairman Bill Gates. Later that month, he shilled for Michael Dell, the founder of the eponymous PC maker who once called for Jobs to shut down Apple and "return the money to shareholders." (Apple is now worth far more than Dell. Ha!)

And to think they were once so close. At an Apple event in 2003, Bono called Jobs "the Dalai Lamai of integration." One year later, Bono and Jobs introduced a U2-branded edition of the iPod. Jobs, who is rarely seen in public, attended a U2 concert in 2005, and Bono praised Apple as being "more creative than a lot of rock bands." In 2006, Bono promoted a red iPod for his Product (Red) charity scheme.

So what happened? The falling out has never been publicly explained, but I have a theory on what happened.

Apple's board of directors fingered Fred Anderson, the former Apple CFO, in a probe over stock-options backdating at Apple. In a public statement, Anderson blamed Jobs. Things got messy, and Anderson resigned from the board after reaching a settlement with the SEC.

At that point, Anderson was already at Elevation helping make Bono, whose net worth is estimated in the hundreds of millions of dollars, even richer. So Jobs wasn't just messing with Bono's pal; he was messing with his pocketbook.

It hardly squares with the Irish rocker's saintly save-the-children image, does it?

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<![CDATA[Palm poaches another Apple executive]]> Jon Rubinstein, the chairman of Palm, is once again striking former boss Steve Jobs where it hurts — Apple's talent. The latest hire: Lynn Fox, the head of Mac PR, joined Palm earlier this month. For a PR person, she's made the move surprisingly quietly; her name has yet to appear on any press releases. As with Mike Bell, the Apple veteran who now heads Palm's product development, Rubinstein is likely trying to keep things quiet. Relations between Palm and Apple, whose iPhone is walloping Palm's Treo, are tense enough as it is.

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<![CDATA[Palm misses earnings, despite Centro sales]]> Did I just buy my last Palm smartphone? My aging Treo 600 — yes, I hear your snickers already — died at SXSW, and I picked up a cheap Centro to replace it at a Sprint store. (A tip: Skip the $50 rebate and pay $149 instead of $99; the monthly data plan will be less expensive.) Chairman Jon Rubinstein is revamping the company's hardware and software, but does he have enough time? Until the former Apple exec's inventions hit the market, the company has to make do on Centro sales, which swell its unit sales but hit its profit margins. Palm sold a record 833,000 phones in the most recent quarter, but its $312 million in sales came in below Wall Street's hopes. For what it's worth, I love the Centro; if it hadn't locked up at just the wrong moment, I would have beaten Mashable's Pete Cashmore with his iPhone in a text-messaging duel.

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<![CDATA[With latest hire, Palm's poaching at Apple comes to a boil]]> Palm has hired Mike Bell, a 16-year Apple veteran, as its SVP of product development. But you'll never hear that from Palm. The hiring of an industry veteran for a top executive spot is something normally trumpeted as loudly as possible. But Palm is desperately trying to keep quiet the fact that it won over Bell shortly before Christmas. Why the silencing effort? Jon Rubinstein, Palm's chairman, was part of Steve Jobs's turnaround team before he left Apple in 2006. Since he joined Palm last year, the smartphone maker has been hiring a number of Apple engineers. There have been "screaming matches and threats of lawsuits," says a plugged-in source.

The loss of Bell was apparently so intolerable to Jobs that Palm hasn't dared announce his hire publicly, though he's listed on the company's management page, and SEC filings reveal he's received stock in the company. A Palm spokeswoman says the company hasn't announced any new hires recently. That strikes me as an unlikely reason: The company is desperately in need of some good news, and wooing a top executive from Palm's most lethal rival in the smartphone market would seem to qualify.

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<![CDATA[Did Palm's Jon Rubinstein know the MacBook Air was coming?]]> Rubinstein"Does it remind you of the Foleo?" Palm's never-released "smartphone companion" laptop, killed on the eve of its introduction last September, does look a bit like Apple's new MacBook Air, though the latter is thinner yet and far more powerful. Under the casings, there's little comparison. Which raises a question: Did Jon Rubinstein, the former Apple executive who's now Palm's executive chairman, get some inkling that Apple would be coming out with the MacBook Air?

Rubinstein left Apple in the spring of 2006, before the Air began serious development. But he'd presumably have sufficient contacts within Apple to get such a warning. It would explain a long-standing mystery: Why Palm killed the Foleo later, rather than sooner. Better to take the financial hit in September — Palm wrote off $10 million in Foleo R&D — than to face the inevitable comparisons to a far superior machine in January.

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<![CDATA[Layoffs at Palm come in OS development]]> rubinstein.jpgA anonymous tipster tells us Palm will lay off 250 employees, confirming our previous report. "The biggest cuts are from OS development," our source says. "[SVP Mark] Bercow wants the OS sold by April or worst case scenario — abandoned." Which seems strange, considering Palm went through some gymnastics just to get is old operating system back from the Japanese company, Access, which had bought it. The rumor, however, jibes with the Wall Street Journal's report last week on former Apple exec and current Palm executive chairman Jon Rubinstein's plans for the company.

Sources told the Journal Rubinstein plans to develop a new Linux-based software platform to run apps on all of Palm's devices before the end of next year. And Rubinstein seems comfortable with addition by subtraction. The Journal says he "cleaned house" within a month of his arrival last summer. Still, the timing is tough for Palm engineers. "What a holiday gift," our source writes. "We're supposed to be told about severance tomorrow."

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<![CDATA[Jon Rubinstein inherits a fistful of fun]]> RubinsteinFormer Apple exec Jon Rubinstein, who ushered in the iMac and iBook, was recruited by Palm in mid-July to help pull the company out from under Apple's Birkenstocks and RIM's wingtips. The flailing smartphone maker certainly needs someone to inject something into its product lineup that is, as CEO Ed Colligan concedes, perceived as stale. (Treo, Treo, Treo!) Too bad it didn't happen sooner. Yesterday it was confirmed Palm will have a wave of layoffs, rumored to be in the hundreds, in the next few weeks. Why?

Because an unspecified product didn't meet with a carrier's approval. Palm blames the misstep for a $30 million hit to this quarter's projected revenues). Rubinstein's influence may take years to find its way into actual phones. No consolation for those without jobs in the short term.

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