At a planned event tomorrow from its Cupertino, California headquarters, Apple is expected to announce two new iPhone models — one with a faster processor and another to be offered at a lower cost. As Apple’s profit growth has been impacted by a saturated handset market in the U.S. and parts of Europe, a lower-cost smartphone could allow the company to expand into other markets such as China and India, which would also mean new potential customers for iTunes movies, TV and music. Continue reading Apple Plans to Unveil Two New iPhones, Could Help Hollywood

Steve Ballmer is retiring as CEO of Microsoft, leaving many to question what the next CEO will need to do in order to invigorate the company, boost morale and emphasize innovation. Ballmer is said to have focused more on sales and revenue, rather than experimentation, and did not fully develop many technologies the company began, some of which competitors would later turn into blockbusters. However, innovation under Ballmer is evidenced by departures such as the Kinect motion sensor and the interface of Windows 8. Continue reading Ballmer to Retire: What Challenges Lie Ahead for Microsoft?

Due to a lack of user demand, Facebook will shutter its physical gifting service that launched less than a year ago. Responding to higher customer preference, the company plans to shift its Gifts program entirely to gift cards and digital goods, since more than 80 percent of gifts sent on Facebook have been digital. The move is also likely due to the complicated delivery operation involving physical goods, including inventory tracking, fulfillment and customer service. Continue reading Gifts Program: Facebook Replaces Physical Goods with Digital

Aereo’s CEO and founder Chet Kanojia claims that the company will be profitable before achieving one million subscribers. Aereo is not disclosing its subscriber numbers, but the company could earn a profit with only hundreds of thousands of subscribers, according to Kanojia. Television broadcasters have been unsuccessful so far in preventing Aereo from operating. The service is expanding into new regions this year to cover a total of 22 cities. Continue reading CEO Says Aereo Will Be Profitable Before One Million Subs

Yahoo announced early this morning that it has agreed to pay $1.1 billion for Tumblr, the six-year-old blogging site that touts more than 100 million users, but little in the form of revenue. While Tumblr users have already expressed concerns that the site could end up cluttered with ads, Yahoo CEO Marissa Mayer promises “not to screw it up.” The deal marks the largest social acquisition in years, surpassing last year’s $1 billion purchase of Instagram by Facebook. Continue reading Yahoo Announces $1.1 Billion Acquisition Plan for Tumblr