Joe Wilcox

Okay, the stupidity lies with cellular carriers who let the tracking software onto their phones. Their actions will irreparably tarnish the industry's image and quite likely lead to unwanted government intervention. I'm assuming, of course, that Carrier IQ really is as bad as Android developer Trevor Eckhart claims. My God, what if it's worse?

Carrier IQ is tracking software that behaves every bit like a keylogger -- installed at a low-level like a rootkit would be. It logs all activities. That's right. Everything, even when the phone is disconnected from the network, or when using WiFi, and it continues its privacy-violating ways even after a cellular subscriber's contract has expired. Simply put: It's an abomination. It's a violation of privacy in the worst way, because cell phones are the most personal tech devices and used to maintain the most intimate relationships.

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I've got a soft spot for Windows Phone. The operating system is classy, vibrant, intuitive and refreshing -- the latter particularly compared to Android and iOS. Windows Phone also is a bleeding failure, as I predicted it would be in February 2010 -- when calling the platform a "lost cause". I grudgingly admit to being right. Ah hum. Only Nokia can save Windows Phone now. They swim for land or drown together.

Yesterday, Nielsen released US smartphone operating system share at end of third quarter. For Android and iOS: 42.8 percent and 28.3 percent, respectively. Windows Phone: 1.2 percent, which is less than Symbian (1.7 percent) -- the operating system WP will replace on Nokia handsets, which have far less visibility than does WP7 in the United States; that's sadist commentary of all. Windows Mobile share is 6.1 percent, and that's a good place for Microsoft to really target. Imagine if all those customers could convert to smartphones running the newer software.

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Today, Microsoft reported record Black Friday week Xbox console sales -- 960,000 units. That works out to roughly one per minute, assuming six-and-a-half days of sales (reduced for Thanksgiving Day). It's a phenomenal achievement for an aging console and demonstrates how Kinect and lower-entry cost 4GB models extend Xbox vitality as a platform. Microsoft describes the milestone as the "biggest week of sales in Xbox history".

However, the sales per minute is much higher for Black Friday -- well, presumably. Microsoft says that 800,000 consoles sold in one 24-hour period, which I assume means day after Thanksgiving. That works out to 555.5555 Xboxes per minute. Consumers also snatched up 750,000 Kinect sensors -- that's standalone and bundled -- during the whole week.

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That's my question for you to ponder and to comment and debate about. Yesterday, a Forrester Research analyst proclaimed "Microsoft has missed the peak of consumer desire for a product they haven't yet released" -- it's already too late for Windows 8 tablets. He's absolutely nuts, I say. Or is he?

The analyst, JP Gownder, contends that "Windows 8 is going to be very late to the party" and Apple and Samsung tablets "will likely be into their third generation by the time Windows 8 launches". Microsoft is a late-starter to the tablet market. Meanwhile consumers have lost interest. "In Q1 2011, Windows was by far the top choice of consumers" with 46 percent US consumers pining for a tablet running Microsoft's OS. "By Q3 2011, that picture had changed dramatically...interest among consumers dropped to 25 percent". It's recipe for failure, he contends. I'm not sure what Forrester pays Gownder, but, hey, my more competent analysis is free.

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If you live in Seattle, it's hard not to think about clouds. The mean number of cloudy days a year is 255.5, with another 81.6 partly cloudy. That's a whole lot of overcastness (go ahead, tell me that's no word). Perhaps the skies above remind Microsoft employees below about the importance of "the cloud" to the company's future. Today, Microsoft reminded everyone with some stats on its cloud computing progress and updates to Office 365 and SkyDrive. However, beneath today's announcements there are signs of drought, with only a small number of enterprises embracing Microsoft's cloud.

The Redmond, Wash.-based company is enhancing both services and has broadened availability, 22 more countries -- including Argentina, Iceland, Indonesia, South Africa and Taiwan -- for Office 365. SkyDrive gets a modern makeover, including HTML5 enhancements that are in line with broader Microsoft development objectives for Internet Explorer 10 and Windows 8.

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PC shipments may have been tepid during third quarter, but servers are up year over year despite the economy -- or perhaps because of it. Shipments grew 7.2 percent, according to Gartner, while revenue rose 5.2 percent. That's not exactly gangbusters growth and might have been greater if not for the drag in Europe, where server shipments declined by 4.9 percent.

"Asia/Pacific grew the most significantly in shipments with a 23.9 percent increase", Jeffrey Hewitt, Gartner research vice president, says. "Eastern Europe posted the highest vendor revenue growth at 27.4 percent for the period". Globally, vendors shipped 2.37 million servers, generating $12.97 billion revenue.

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Verizon kicked off helluva holday sale for XOOM LTE on Black Friday -- and you can still get it today online: $199.99 with new two-year activation. But hurry, if interested. Surely pricing like this can't last. That's $529.99 less than the closest comparable iPad 2, and you won't get an LTE radio from Apple.

Is that price low enough for you to buy? In February, when XOOM pricing first leaked, I asked: "Would you pay 800 bucks for the Motorola XOOM?" Eh, no, you wouldn't. You didn't like $600, when I asked about it later on. But now the price is way less, so I'm asking again. Would you pay $200 for Motorola XOOM LTE? Please answer in comments.

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It brings new meaning to Black Friday.

Three days ago, airline Regional Express dropped a press release about a passenger's cell phone "emitting a significant amount of dense smoke, accompanied by a red glow". That must be air industry lingo for fire. That's a word you don't want to hear aboard jetliners in flight. Running for the exits could be worse. Of course, no airline wants to admit to flaming anything inside one of its cabins. The smoker was an iPhone, by the way. Can you tell from the photo whether it's the 4 or 4S? The incident occurred on a flight from Lismore to Sydney, Australia -- yes, on Black Friday.

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The tech gods blessed those who worshiped at the Black Friday altar, or so claim industry analysts releasing numbers yesterday and today. I confess to taking my daughter to an outlet mall, where the checkout line at the Sony store snaked from register to door. But I bought nothing. What about you? Did you do the Black Friday diddy? Please tell your story in comments.

Doorbuster sales -- those with really low prices for people willing to wait in line -- started as early as 10 pm local time Thursday night. Many tech retailers, Best Buy and Microsoft Store among them, opened Midnight Friday. "More than one-in-three (36 percent) Black Friday tech purchasers bought a doorbuster item -- an increase of four percentage points compared to 2010", says Ben Arnold, NPD's director of industry analysis. By NPD estimates, more broadly, American consumers completed one-quarter of their holiday shopping on Black Friday. However, tech buyers finished significantly more -- one-third.

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I sat eating lunch with coworkers when we saw the news over the wire. Dell announced the end of retail sales, taking its business direct to customers -- that was 1994. We laughed about the craziness. Compaq dominated the PC market, leveraging a huge partner network of dealers, resellers and retailers. Cutting out the middleman meant more margin for Dell, and presumably lower costs for businesses and consumers, but how would the brand maintain visibility without shelf space? Dell direct seemed destined to failure.

Succeed it did, making Dell the No.1 PC maker, based on shipments, by decade's end. Dell didn't just go direct but redefined PC distribution, manufacturing and marketing. The Austin, Texas-based company later adopted real-time manufacturing logistics that made competing operations from Compaq, HP and IBM look antiquated. While their managers guessed how many PCs to produce and ship to the channel, Dell provided component suppliers access to orders in real time, which kept the company from over-ordering, dramatically cut component costs and let customers configure exactly what they wanted. More than a decade after Dell's high (and today's subsequent low), Apple distribution, manufacturing and marketing is the envy of competitors. Both companies achieved similar supply-chain dominance, but theirs is a fascinating study of similarities and contrasts.

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By measure of discounts, tech retailers are running scared this holiday -- well, all perhaps other than Apple, which discounts range from puny 7 percent to 16 percent. Elsewhere big discounts mean retailer state of fear and expected Grinch-like consumer demand.

"Overall we have seen nothing, either in the first couple of hours of Black Friday shopping or in the pricing and product tactics of the industry, to make us change our viewpoint to expect a very weak holiday season", Stephen Baker, NPD's vice president of industry analysis, says. How grim will be the Holiday reaper? "NPD has been predicting that this would be the worst holiday since 2008, on a revenue basis, and the early season [discount] aggressiveness from the industry confirms this level of concern".

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Consider yourself lucky if living nearby one of the 14 Microsoft stores -- there are big savings for you today and over the weekend. Live nearby one of the 330 or so Apple shops -- well, you can shop Microsoft Store online for real bargains.

Black Friday is perhaps the one day of the year where Apple and Microsoft differences in retail pricing and digital lifestyle are most pronounced. Apple continues its "pay-more" philosophy, which granted is good for margins and keeps shareholders happy, while Microsoft focuses more on value. That's all assuming Windows PCs at much lower selling prices are more valuable to you than costlier Macs. Hey, more Americans drive mini-vans than Mercedes. But plenty of others can afford and will pay more.

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This year I revive my annual "give thanks" series -- what Microsoft has to be grateful for this Thanksgiving Day. In 2006, "employee bloggers" topped the list and "Google's woes", following a year-long collapse of the search giant's shares, in 2008. What about 2011?

I present the list in reverse order of importance. No. 1 is the last item and the reason for which Microsoft should give most thanks this year (so far).

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Last night I watched Samsung TV commercial "The Next Big Thing is Already Here" about a dozen times on YouTube. I'm a sucker for good advertising, and this one is clever to a punch and already is viral among tech blogs. Apple used to make adverts like this one -- inventive, clever, memorable -- now they're staid and boring. Anyone remember Apple's hugely successful "Switchers" and "Get a Mac" marketing campaigns from the last decade? This new TV spot is a hilarious poke at yokels waiting in line for the newest iPhone, all without mentioning Apple; meanwhile something better is already here -- from Samsung.

Now before some commenter calls me anti-Apple, because I watched the commercial a dozen times and it snarks the iPhone cult, my interest is bigger. The advert is clever in so many ways, particularly how it uses jump cuts or little touches make it real. Example: When the iPhone line waiters ask to see a Samsung Galaxy S II, the owner holds it up. Someone in the line leans forward, raises his arm and says: "Can I see it with my hands?" I've embedded the long version above, which isn't as tight or dramatic as the 60-second spot. There's something to be said about tighter editing, more closeups and shorter jump cuts. The 30-second edit is good, too. Update: The 15-second ad is absolutely cruel.

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There's going to be a controller. Enough people inquired about the obvious that Craig Eisler, Kinect for Windows general manager, felt obliged to answer.

"We’ve been asked whether there will also be new Kinect hardware especially for Windows", he blogs today. "The answer is yes; building on the existing Kinect for Xbox 360 device, we have optimized certain hardware components and made firmware adjustments which better enable PC-centric scenarios".

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