Intel’s Streaming TV Box Will Bundle Cable Channels to Cut Your Cable Bill






Intel has finally confirmed its much rumored revolutionary TV gadget and, as expected, it will not offer à la carte cable channels. But after a CES letdown the chip-maker has said its Silicon Valley star-studded Intel Media group will build a potentially game-changing set-top box — one that might just end up slashing your cable bill. At an AllThingsD conference this afternoon, Intel VP Erik Huggers not only detailed that this as yet unnamed magic box will combine DVR, live TV, and apps, but also explained how it will provide a cable alternative. Instead of requiring a subscription from a standard pay-TV provider, Intel will offer its own different bundles. So, for example, someone who wants the ESPN/Disney package might get all the ESPN channels they love, plus ABC Family, the Disney Channel, A&E, the History Channel, and other stuff owned by Disney, suggests Business Insider’s Steve Kovach.


RELATED: Google Fiber TV Just Jumped into the Cable TV Business






Intel has not confirmed how its bundles will look, or the pricing options therein. But if Intel offers non-Disney/ESPN packages, those should theoretically cost a lot less — the rates of ESPN and other sports-bound networks push up the price of basic cable. And for all those people out there who don’t at all care about sports, it might be nice to stop subsidizing it for everybody else. Again, Intel’s Huggers didn’t specify whether the company’s new device, set to debut sometime this year, would break that contractual dilemma that gouges TV package prices. But he did mention a more “flexible environment,’ which sounds promising:



I agree that consumers want choice and convenience, but I think there is value in bundles. If bundles are bundled right, I think there’s real value in that, and opportunities to create a more flexible environment where end-users have more choice than they do today. I don’t believe the industry is ready for true à la carte.



Gadgets News Headlines – Yahoo! News




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Tom Brokaw Welcomes First Grandson















02/13/2013 at 11:45 AM EST



This just in!

Tom Brokaw welcomed a grandson on Monday, a spokesperson for NBC confirms to PEOPLE.

The NBC News Special Correspondent's daughter, Sarah Brokaw – a licensed therapist specializing in relational dynamics and a New York Times best selling author – gave birth to Archer Thomas Merritt Brokaw.

Sarah's book, Fortytude: Making the Next Decades the Best Years of Your Life – through the 40s, 50s and Beyond, explores the core values of aging.

Archer is the first grandson born to the news anchor, 73, who has six granddaughters.

With Reporting by CHARLOTTE TRIGGS

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Report: Tracking system needed to fight fake drugs


WASHINGTON (AP) — Fighting the problem of fake drugs will require putting medications through a chain of custody like U.S. courts require for evidence in a trial, the Institute of Medicine reported Wednesday.


The call for a national drug tracking system comes a week after the Food and Drug Administration warned doctors, for the third time in about a year, that it discovered a counterfeit batch of the cancer drug Avastin that lacked the real tumor-killing ingredient.


Fake and substandard drugs have become an increasing concern as U.S. pharmaceutical companies move more of their manufacturing overseas. The risk made headlines in 2008 when U.S. patients died from a contaminated blood thinner imported from China.


The Institute of Medicine report made clear that this is a global problem that requires an international response, with developing countries especially at risk from phony medications. Drug-resistant tuberculosis, for example, is fueled in part by watered-down medications sold in many poor countries.


"There can be nothing worse than for a patient to take a medication that either doesn't work or poisons the patient," said Lawrence O. Gostin, a professor of health law at Georgetown University who led the IOM committee that studied how to combat the growing problem.


A mandatory drug-tracking system could use some form of barcodes or electronic tags to verify that a medication and the ingredients used to make it are authentic at every step, from the manufacturing of the active ingredient all the way to the pharmacy, he said. His committee examined fakes so sophisticated that health experts couldn't tell the difference between the packaging of the FDA-approved product and the look-alike.


"It's unreliable unless you know where it's been and can secure each point in the supply chain," Gostin said.


Patient safety advocates have pushed for that kind of tracking system for years, but attempts to include it in FDA drug-safety legislation last summer failed.


The report also concluded that:


—The World Health Organization should develop an international code of practice that sets guidelines for monitoring, regulation and law enforcement to crack down on fake drugs.


—States should beef up licensing requirements for the wholesalers and distributors who get a drug from its manufacturer to the pharmacy, hospital or doctor's office.


__Internet pharmacies are a particularly weak link, because fraudulent sites can mimic legitimate ones. The report urged wider promotion of the National Association of Boards of Pharmacy's online accreditation program as a tool to help consumers spot trustworthy sites.


The Institute of Medicine is an independent organization that advises the government on health matters.


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Wall Street rises, S&P hits highest since November '07

DEAR ABBY: My daughters are attractive young women, both doing well in their professional careers. "Melanie," who is 27, is married to "Sam," an extremely attractive and successful man.My 30-year-old daughter, "Alicia," has been divorced for a year. Her marriage failed two years ago because she and her husband had an appetite for sex outside their marriage. While I was disturbed about that, I was horrified to learn that Melanie allows her sister to occasionally have sex with Sam.Melanie's argument is that Sam is less likely to cheat given this situation. ...
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Pope confident his resignation will not hurt Church


ROME (Reuters) - A visibly moved Pope Benedict tried to assure his worldwide flock on Wednesday over his stunning decision to become the first pontiff in centuries to resign, saying he was confident that it would not hurt the Church.


The Vatican, meanwhile, announced that a conclave to elect his successor would start sometime between March 15 and March 20, in keeping with Church rules about the timing of such gatherings after the papal see becomes vacant.


"Continue to pray for me, for the Church and for the future pope," he said in unscripted remarks at the start of his weekly general audience, his first public appearance since his shock decision on Monday that he will step down on February 28.


It was the first time Benedict, 85, who will retire to a convent inside the Vatican, exchanging the splendor of his 16th century Apostolic Palace for a sober modern residence, had uttered the words "future pope" in public.


Church officials are still so stunned by the move that the Vatican experts have yet to decide what his title will be and whether he will continue to wear the white of a pope, the red of a cardinal or the black of an ordinary priest.


His voice sounded strong at the audience but he was clearly moved and his eyes appeared to be watering as he reacted to the thunderous applause in the Vatican's vast, modern audience hall, packed with more than 8,000 people.


In brief remarks in Italian that mirrored those he read in Latin to stunned cardinals on Monday he appeared to try to calm Catholics' fears of the unknown.


He message was that God would continue to guide the Church.


EXAMINATION OF CONSCIENCE


"I took this decision in full freedom for the good of the Church after praying for a long time and examining my conscience before God," he said.


He said he was "well aware of the gravity of such an act," but also aware that he no longer had the strength required to run the 1.2 billion member Roman Catholic Church, which has been beset by a string of scandals both in Rome and round the world.


Benedict said he was sustained by the "certainty that the Church belongs to Christ, who will never stop guiding it and caring for it" and suggested that the faithful should also feel comforted by this.


He said that he had "felt almost physically" the affection and kindness he had received since he announced the decision.


When Benedict resigned on Monday, the Vatican spokesman said the pontiff did not fear schism in the Church after his decision to step down.


Some 115 cardinals under the age of 80 will be eligible to enter a secret conclave to elect his successor.


Cardinals around the world have already begun informal consultations by phone and email to construct a profile of the man they think would be best suited to lead the Church in a period of continuing crisis.


The likelihood that the next pope would be a younger man and perhaps a non-Italian, was increasing, particularly because of the many mishaps caused by Benedict's mostly Italian top aides.


Benedict has been faulted for putting too much power in the hands of his friend, Secretary of State Cardinal Tarcisio Bertone. Critics of Bertone, effectively the Vatican's chief administrator, said he should have prevented some papal mishaps and bureaucratic blunders.


ILL-SERVED POPE


"These scandals, these miscommunications, in many cases were caused by Pope Benedict's own top aides and I think a lot of Catholics around the world think that he was perhaps ill-served by some of the cardinals here," said John Thavis, author of a new book The Vatican Diaries.


Benedict's papacy was rocked by crises over sex abuse of children by priests in Europe and the United States, most of which preceded his time in office but came to light during it.


His reign also saw Muslim anger after he compared Islam to violence. Jews were upset over rehabilitation of a Holocaust denier. During a scandal over the Church's business dealings, his butler was accused of leaking his private papers.


"When cardinals arrive here for the conclave ... they are going to have this on their mind, they're going to take a good hard look at how Pope Benedict was served, and I think many of them feel that the burden of the papacy that finally weighed so heavy on Benedict was caused in part by some of this in-fighting (among his administration)," Thavis told Reuters.


Vatican spokesman Father Federico Lombardi urged the faithful to remain confident in the Church and its future.


"Those who may feel a bit disorientated or stunned by this, or have a hard time understanding the Holy Father's decision should look at it in the context of faith and the certainty that Christ will support his Church," Lombardi said.


Lombardi said that on his last day in office, Benedict would receive cardinals in a farewell meeting and after February 28 his ring of office, used to seal official documents, would be destroyed just as if he had died.


Later on Wednesday, an Ash Wednesday Mass that was originally scheduled to have taken place in a small church in Rome, has been moved to St Peter's Basilica so more people can attend.


Unless the Vatican changes the pope's schedule, it will be his last public Mass.


(Reporting By Philip Pullella; Editing by Giles Elgood)



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Julianna Margulies: Every Day with My Son Is a New Adventure




Celebrity Baby Blog





02/12/2013 at 11:00 AM ET



Julianna Margulies LEGO/Duplo Read Build Play
Timothy Hyatt/Getty


Reading is fundamental for Julianna Margulies, especially when it comes to her 5-year-old son Kieran Lindsay.


“Since I’ve had a child [there hasn't been a day] that we haven’t read to him at night,” The Good Wife star, 46, tells PEOPLE Thursday at an event she hosted for LEGO/Duplo’s Read! Build! Play!


“And if I can’t be there my husband is or the babysitter is. Somebody is always there reading to him before he goes to sleep.”


To that end, weekly library trips have become routine in Margulies’ household.

“We have a great little neighborhood library, so once a week we take seven books out and then we bring them back and switch them,” she explains. “If we don’t go on a Monday, Kieran’s like, ‘Wait — it’s library day.’”


Margulies is continually surprised by what she refers to as her son’s “undying curiosity.”


“Everything is new and exciting, so it makes you look through their eyes and see the world that way. He wakes up 6 a.m. and just starts talking. Everything is interesting. And it can be anything — it can be a shadow on the wall or a prism light that you suddenly see a rainbow coming out of. Every day is a new adventure with him.”


–Shakthi Jothianandan


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Pope shows lifetime jobs aren't always for life


The world seems surprised that an 85-year-old globe-trotting pope who just started tweeting wants to resign, but should it be? Maybe what should be surprising is that more leaders his age do not, considering the toll aging takes on bodies and minds amid a culture of constant communication and change.


There may be more behind the story of why Pope Benedict XVI decided to leave a job normally held for life. But the pontiff made it about age. He said the job called for "both strength of mind and body" and said his was deteriorating. He spoke of "today's world, subject to so many rapid changes," implying a difficulty keeping up despite his recent debut on Twitter.


"This seemed to me a very brave, courageous decision," especially because older people often don't recognize their own decline, said Dr. Seth Landefeld, an expert on aging and chairman of medicine at the University of Alabama at Birmingham.


Age has driven many leaders from jobs that used to be for life — Supreme Court justices, monarchs and other heads of state. As lifetimes expand, the woes of old age are catching up with more in seats of power. Some are choosing to step down rather than suffer long declines and disabilities as the pope's last predecessor did.


Since 1955, only one U.S. Supreme Court justice — Chief Justice William Rehnquist — has died in office. Twenty-one others chose to retire, the most recent being John Paul Stevens, who stepped down in 2010 at age 90.


When Thurgood Marshall stepped down in 1991 at the age of 82, citing health reasons, the Supreme Court justice's answer was blunt: "What's wrong with me? I'm old. I'm getting old and falling apart."


One in 5 U.S. senators is 70 or older, and some have retired rather than seek new terms, such as Hawaii's Daniel Akaka, who left office in January at age 88.


The Netherlands' Queen Beatrix, who just turned 75, recently said she will pass the crown to a son and put the country "in the hands of a new generation."


In Germany, where the pope was born, Chancellor Angela Merkel, who is 58, said the pope's decision that he was no longer fit for the job "earns my very highest respect."


"In our time of ever-lengthening life, many people will be able to understand how the pope as well has to deal with the burdens of aging," she told reporters in Berlin.


Experts on aging agreed.


"People's mental capacities in their 80s and 90s aren't what they were in their 40s and 50s. Their short-term memory is often not as good, their ability to think quickly on their feet, to execute decisions is often not as good," Landefeld said. Change is tougher to handle with age, and leaders like popes and presidents face "extraordinary demands that would tax anybody's physical and mental stamina."


Dr. Barbara Messinger-Rapport, geriatrics chief at the Cleveland Clinic, noted that half of people 85 and older in developed countries have some dementia, usually Alzheimer's. Even without such a disease, "it takes longer to make decisions, it takes longer to learn new things," she said.


But that's far from universal, said Dr. Thomas Perls, an expert on aging at Boston University and director of the New England Centenarians Study.


"Usually a man who is entirely healthy in his early 80s has demonstrated his survival prowess" and can live much longer, he said. People of privilege have better odds because they have access to good food and health care, and tend to lead clean lives.


"Even in the 1500s and 1600s there were popes in their 80s. It's remarkable. That would be today's centenarians," Perls said.


Arizona Sen. John McCain turned 71 while running for president in 2007. Had he won, he would have been the oldest person elected to a first term as president. Ronald Reagan was days away from turning 70 when he started his first term as president in 1981; he won re-election in 1984. Vice President Joe Biden just turned 70.


In the U.S. Senate, where seniority is rewarded and revered, South Carolina's Strom Thurmond didn't retire until age 100 in 2002. Sen. Robert Byrd of West Virginia was the longest-serving senator when he died in office at 92 in 2010.


Now the oldest U.S. senator is 89-year-old Frank Lautenberg of New Jersey. The oldest congressman is Ralph Hall of Texas who turns 90 in May.


The legendary Alan Greenspan was about to turn 80 when he retired as chairman of the Federal Reserve in 2006; he still works as a consultant.


Elsewhere around the world, Cuba's Fidel Castro — one of the world's longest serving heads of state — stepped down in 2006 at age 79 due to an intestinal illness that nearly killed him, handing power to his younger brother Raul. But the island is an example of aged leaders pushing on well into their dotage. Raul Castro now is 81 and his two top lieutenants are also octogenarians. Later this month, he is expected to be named to a new, five-year term as president.


Other leaders who are still working:


—England's Queen Elizabeth, 86.


—Abdullah bin Abd al-Aziz al-Saud, king of Saudi Arabia, 88.


—Sabah al-Ahmad al-Jaber al-Sabah, emir of Kuwait, 83.


—Ruth Bader Ginsburg, U.S. Supreme Court associate justice, 79.


__


Associated Press writers Paul Haven in Havana, Cuba; David Rising in Berlin; Seth Borenstein, Mark Sherman and Matt Yancey in Washington, and researcher Judy Ausuebel in New York contributed to this report.


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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Wall Street pauses after gains, awaits Obama address

NEW YORK (Reuters) - Stocks were little changed on Tuesday, with the S&P 500 holding near multi-year highs ahead of President Barack Obama's State of the Union address.


The economy will be a major topic of Obama's speech before a joint session of Congress set for 9 p.m. (0200 GMT Wednesday). Investors will listen for any clues on a deal with Republicans to avert automatic spending cuts due to take effect March 1.


The S&P 500 has risen in the past six weeks and is up 6.5 percent so far this year. But gains have been harder to come by since the benchmark S&P index hit a five-year high on February 1. The market has to consolidate strong gains at the year's start while investors search for reasons to drive stocks higher.


"The market itself at this point has got to digest this six-plus percentage point move ... we are due for that pause," said Drew Nordlicht, managing director at HighTower Advisors in San Diego.


Investors are "looking for more data at this point going forward to support the thesis that corporate profits will continue to grow and the economy has turned the corner."


The White House has signaled Obama in his speech will urge U.S. investment in infrastructure, manufacturing, clean energy and education. He is also expected to call for comprehensive trade talks with the European Union.


With earnings season moving to its latter stages, of the 353 companies in the S&P 500 that have reported earnings, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters according to Thomson Reuters data through Tuesday morning.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.3 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


The Dow Jones industrial average <.dji> gained 27.65 points, or 0.20 percent, to 13,998.89. The Standard & Poor's 500 Index <.spx> added 1.03 points, or 0.07 percent, to 1,518.04. The Nasdaq Composite Index <.ixic> dipped 1.60 points, or 0.05 percent, to 3,190.41.


Coca-Cola Co shares fell 1.9 percent to $37.88 and were the biggest drag on the Dow after the world's largest soft drink maker reported quarterly revenue slightly below analysts' estimates, hurt by a weaker-than-expected performance in Europe.


Housing shares climbed, led by a 12.9 percent jump in Masco Corp to $20.09 after the home improvement product maker posted fourth-quarter earnings and said it expects new home construction to show strong growth in 2013. The PHLX housing sector index <.hgx> gained 2.7 percent.


Avon Products shares surged 16.7 percent to $20.16 after the beauty products company reported a better-than-expected quarterly profit.


Goodyear Tire & Rubber shares lost 3.1 percent to $13.48 after it posted a stronger-than-expected quarterly profit but cut its 2013 forecast due to weakness in the European automotive market.


Michael Kors Holdings shares jumped 10.9 percent to $63.24 after the fashion company handily beat Wall Street's estimates and raised its full-year outlook.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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China joins U.S., Japan in condemning North Korea nuclear test


SEOUL (Reuters) - North Korea conducted its third nuclear test on Tuesday in defiance of existing U.N. resolutions, drawing condemnation from around the world, including from its only major ally, China, which summoned the North Korean ambassador to protest.


The reclusive North said the test was an act of self-defense against "U.S. hostility" and threatened further, stronger steps if necessary.


It said the test had "greater explosive force" than the 2006 and 2009 tests. Its KCNA news agency said it had used a "miniaturized" and lighter nuclear device, indicating that it had again used plutonium which is more suitable for use as a missile warhead.


North Korean leader Kim Jong-un, the third of his line to rule the country, has presided over two long-range rocket launches and a nuclear test during his first year in power, pursuing policies that have propelled his impoverished and malnourished country closer to becoming a nuclear weapons power.


China, which has shown signs of increasing exasperation with the recent bellicose tone of its neighbor, summoned the North Korean ambassador in Beijing and protested sternly, the Foreign Ministry said.


Foreign Minister Yang Jiechi said China was "strongly dissatisfied and resolutely opposed" to the test and urged North Korea to "stop any rhetoric or acts that could worsen situations and return to the right course of dialogue and consultation as soon as possible".


China is a permanent member of the Security Council.


U.S. President Barack Obama labeled the test a "highly provocative act" that hurt regional stability and pressed for new sanctions.


"The danger posed by North Korea's threatening activities warrants further swift and credible action by the international community. The United States will also continue to take steps necessary to defend ourselves and our allies," Obama said in a statement.


The Security Council will meet on Tuesday to discuss its reaction to the test, although North Korea is already one of the most heavily sanctioned states in the world and has few external economic links that can be targeted.


Japanese Prime Minister Shinzo Abe said the test was a "grave threat" that could not be tolerated. U.N. Secretary-General Ban Ki-moon said the test was a "clear and grave violation" of U.N. Security Council resolutions.


Russian Foreign Minister Sergei Lavrov urged North Korea to abandon its nuclear arms program and return to talks. NATO condemned the test as an "irresponsible act" that posed a grave threat to world peace.


The test "was only the first response we took with maximum restraint", an unnamed spokesman for the North Korean Foreign Ministry, which acts as Pyongyang's official voice to the outside world, said in a statement carried by the official KCNA news agency.


"If the United States continues to come out with hostility and complicates the situation, we will be forced to take stronger, second and third responses in consecutive steps."


North Korea often threatens the United States and its "puppet", South Korea, with destruction in colorful terms.


North Korea told the U.N. disarmament forum in Geneva that it would never bow to resolutions on its nuclear program and that prospects were "gloomy" for the denuclearization of the divided Korean peninsula because of a "hostile" U.S. policy.


South Korea, still technically at war with the North after the 1950-53 civil war ended in a mere truce, also denounced the test.


The magnitude was roughly twice as large as that of 2009, Lassina Zerbo, director of the international data centre division of the Vienna-based Comprehensive Nuclear-Test Ban Treaty Organization, said. The U.S. Geological Survey said that a seismic event measuring 5.1 magnitude had occurred.


"It was confirmed that the nuclear test that was carried out at a high level in a safe and perfect manner using a miniaturized and lighter nuclear device with greater explosive force than previously did not pose any negative impact on the surrounding ecological environment," KCNA said.


Despite China's strong response, the test is likely to be a major embarrassment for Beijing, the North's sole major economic and diplomatic ally.


"The test is hugely insulting to China, which now can be expected to follow through with threats to impose sanctions," said Mark Fitzpatrick of the International Institute for Strategic Studies think tank.


North Korea trumpeted the announcement on its state television channel to patriotic music against the backdrop of an image of its national flag.


It linked the test to its technical prowess in launching a long-range rocket in December, a move that triggered the U.N. sanctions, backed by China, that Pyongyang said prompted it to take Tuesday's action.


The North's ultimate aim, Washington believes, is to design an intercontinental ballistic missile capable of carrying a nuclear warhead that could hit the United States. North Korea says the program is aimed merely at putting satellites in space.


North Korea used plutonium in previous nuclear tests and prior to Tuesday there had been speculation it would use highly enriched uranium so as to conserve its plutonium stocks as testing eats into its limited supply of the material that could be used to construct a nuclear bomb.


"VICIOUS CYCLE"


Despite its three nuclear tests and long-range rocket tests, North Korea is not believed to be close to manufacturing a nuclear missile capable of hitting the United States.


South Korea's Yonhap news agency said Pyongyang had informed China and the United States of its plans to test on Monday, although this could not be confirmed.


When North Korean leader Kim, 30, took power after his father's death in December 2011, there were hopes the he would bring reforms and end Kim Jong-il's "military first" policies.


Instead, the North, whose economy is smaller than it was 20 years ago and where a third of children are believed to be malnourished, appears to be trapped in a cycle of sanctions followed by further provocations.


"The more North Korea shoots missiles, launches satellites or conducts nuclear tests, the more the U.N. Security Council will impose new and more severe sanctions," said Shen Dingli, a professor at Shanghai's Fudan University. "It is an endless, vicious cycle."


But options for the international community appear to be in short supply.


Tuesday's action appeared to have been timed for the run-up to February 16 anniversary celebrations of Kim Jong-il's birthday, as well as to achieved maximum international attention.


Significantly, the test comes at a time of political transition in China, Japan and South Korea, and as Obama begins his second term. He will likely have to tweak his State of the Union address due to be given on Tuesday.


Japanese Prime Minister Shinzo Abe is bedding down a new government and South Korea's new president, Park Geun-hye, prepares to take office on February 25.


China too is in the midst of a once-in-a-decade leadership transition to Xi Jinping, who takes office in March. Both Abe and Xi are staunch nationalists.


The longer-term game plan from Pyongyang may be to restart talks aimed at winning food and financial aid. China urged it to return to the stalled "six-party" talks on its nuclear program, hosted by China and including the two Koreas, the United States, Japan and Russia.


Its puny economy and small diplomatic reach mean the North struggles to win attention on the global stage - other than through nuclear tests and attacks on South Korea, last made in 2010.


"Now the next step for North Korea will be to offer talks... - any form to start up discussion again to bring things to their advantage," said Jeung Young-tae, senior research fellow at the Korea Institute for National Unification in Seoul.


The European Union's foreign policy chief, Catherine Ashton, urged North Korea to refrain from further provocation.


EU member Denmark called on China to step up to the plate and use its influence to rein in its ally.


"This deserves only one thing and that is a one-sided condemnation," said Foreign Minister Villy Sovndal. "North Korea is likely the most horrible country on this planet."


(Additional reporting by Jack Kim, Christine Kim and Jumin Park in SEOUL; Linda Sieg in TOKYO; Louis Charbonneau at the UNITED NATIONS; Fredrik Dahl in VIENNA; Michael Martina and Chen Aizhu in BEIJING; Mette Fraende in COPENHAGEN; Adrian Croft, Charlie Dunmore and Justyna Pawlak in BRUSSELS; Editing by Nick Macfie)



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Australia to grill Apple, others on pricing






CANBERRA (Reuters) – Apple Inc has been ordered to appear before Australia‘s parliament with fellow technology giants Microsoft Inc and Adobe Systems Inc to explain why local consumers pay so much for their products, despite the strong Aussie dollar.


Broadening a row between the world’s most valuable company and Australian lawmakers over corporate taxes paid on Apple‘s operations, Apple executives were formally summonsed on Monday to front a parliamentary committee in Canberra on March 22.






“In what’s probably the first time anywhere in the world, these IT firms are now being summoned by the Australian parliament to explain why they price their products so much higher in Australia compared to the United States,” said ruling Labor government MP Ed Husic, who helped set up the committee.


High local prices and soaring cost-of-living bills for basic services are hurting the popularity of the minority Labor government ahead of a September 14 election it is widely tipped to lose, giving political momentum to the inquiry.


All three companies have so far declined to appear before the special committee set up in May last year to investigate possible price gouging on Australian hardware and software buyers, despite the Australian dollar hovering near record highs above the U.S. currency around A$ 1.03.


A 16GB WiFi iPad produced by Apple with Retina display sells in Australia for A$ 539, $ 40 above the price in the U.S., despite the stronger local currency. Microsoft’s latest versions of office 365 home premium cost A$ 119 in Australia versus $ 99.99 in the United States.


IT firms and other multinationals have blamed high operating costs in Australia including high local wages and conditions, as well as import costs and the relatively small size of the retail market in the $ 1.5 trillion economy.


Failure to appear before the committee as ordered could leave all three firms open to contempt of parliament charges, fines or even jail terms.


“For some time consumers and businesses have been trying to work out why they are paying so much more, particularly for software, where if it’s downloaded there is no shipping or handling, or much of a labor cost,” Husic told Reuters.


Adobe and Microsoft have previously provided separate written statements and submissions to the inquiry. But executives have been reluctant to explain their pricing before a public inquiry.


Apple executives in Australia declined to comment when contacted by Reuters.


“The companies have blamed each other for not appearing. One will say ‘we’re not going to appear if the other is not going to appear’. So we’ve cut straight to the chase and said we’ll just summons you,” Husic said.


Price gouging in IT for hardware and software, Husic said, could be costing Australia’s more than 2 million small and medium businesses as much as $ 10 billion extra.


Husic took aim at Apple last week over local taxes paid by the company, telling parliament that Apple generated A$ 6 billion in revenue in Australia in 2011, but paid only A$ 40 million in tax – less than one percent of turnover.


“While they generated A$ 6 billion in revenue, they apparently racked up from what I understand A$ 5.5 billion in costs. How?” Husic said. “They do not manufacture here. They have no factories here.”


He accused Apple executives of maintaining a “cloak of invisibility”, while dodging scrutiny of operations. Apple has been criticized elsewhere for its zealous secrecy.


“Ask anyone who has sought answers from them about their Australian operations and you will hear a common theme. They will not talk,” he said.


(Editing by Shri Navaratnam)


Tech News Headlines – Yahoo! News





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