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"And yet they sell products that people want to buy, without a single bailout, or even massive layoffs." apple bail out And yes, they have had massive layoffs preceding the bailout. Although, I could kick myself for not buying stock during the panic selling. It was one of those to do things that I never got around to. People get rich when other people panic, at least people other than I do. So far, other than Palm, I'm not aware of any of the major phone manufacturers receiving a bail out. Maybe Motorola during the dark years. Speaking of Motorola, I read a story tonight that they are going to stop using Google location services for their Android phones. That is an interesting turn of events and may warrant it's own thread later if anyone is interested.

You were saying ...

... apple bail out ...

That wasn't a bailout... although many who are uninformed have perpetrated that myth. What it was -- was Intel and Microsoft getting caught for taking Apple's code in some of their work. That came back to bite Microsoft in the butt -- and they paid for it. That was part of the settlement deal that was worked out for how Microsoft would pay for it. I hear there was more money paid to Apple, of an undisclosed amount, to settle with Apple and also cross-licensing agreements made to finally put the settlement deal to rest -- to the satisfaction of Apple.

I'm sure Steve Jobs loved hammering Bill Gates on that one ... LOL ...

"And yet they sell products that people want to buy, without a single bailout, or even massive layoffs." apple bail out And yes, they have had massive layoffs preceding the bailout. Although, I could kick myself for not buying stock during the panic selling. It was one of those to do things that I never got around to. People get rich when other people panic, at least people other than I do. So far, other than Palm, I'm not aware of any of the major phone manufacturers receiving a bail out. Maybe Motorola during the dark years. Speaking of Motorola, I read a story tonight that they are going to stop using Google location services for their Android phones. That is an interesting turn of events and may warrant it's own thread later if anyone is interested.

How many times do I have to shoot down this "Bailout myth?"

Excuse me, DangerDoc, but that was no "Bailout." That was Microsoft Paying off on a losing lawsuit settlement... Apple had over 1 billion dollars in the bank in cash, was already in the bank. And by the time you accounted for other liquid assets, Apple had almost $2 billion.

The payment to Apple was to purchase $150 million in NON-VOTING RESTRICTED shares of preferred stock (hardly a "bail-out") as part of three interlocking agreements that Microsoft and Apple executed to end a lawsuit that Apple had instigated against Microsoft for stealing the Quicktime Code that was found inside Microsoft's Windows Media Player software... in its entirety including the name of one of Apple's software engineer's mothers, specific identifying words not part of the code, and other things placed there by Apple.

In addition to paying Apple the $150 million, Microsoft agreed to license the offending software patents from Apple for an undisclosed yearly license for a period of five years, as well as other software patents that Microsoft admitted under discovery they were using with out license. They also agreed to continue development of Microsoft Office for Mac for those same five years... and agreed to continue to market Office for Mac for those five years... after having cancelled Office for Mac. In addition, Microsoft, agreed, as further compensation to Apple to grant unlimited licenses to Apple certain undisclosed Software patents held by Microsoft, without compensation from Apple, in perpetuity for the life of the patents.

For its part, as part of these three agreements, Apple agreed to issue the preferred non-voting, non-controlling stock from already authorized stock. Apple agreed to ship, on its distribution disks of Apple's Operating System, and on all new Macs, Microsoft's Internet Explorer for Mac along with Netscape Navigator for Mac, and allow Macintosh Users to elect to select one or the other as the default browser on the Macintosh for a period of five years. Apple agreed to license to Microsoft the Quicktime software patents that Microsoft had originally ripped off, for an undisclosed amount for five years and to not publicize that licensing. Finally, Apple agreed to drop its lawsuit against Microsoft for patent infringement.

Some legal analysts estimate that Microsoft's ultimate cost of this settlement, counting the $150 million and the licensing of the software patents may have totaled over $2 billion dollars over the five years of the agreement. This is undetermined as both companies do not break out the income and expenses of their licensing income or expenses in their books. However, Microsoft cut it's losses when it sold it's Apple stock as soon as the restrictions expired in three years for about $450 million. . . so it was a good investment. But it was NOT a bail-out.

The interlocking agreements between Apple and Microsoft outlining all this are now available on the internet for those interested in digging them out and reading them.