The Professor's Notes

I caught in Twitter today a “retweet” from @MacsFuture where they said that the Nexus 1 isn’t selling well. There was a link to the full comment on posterous, where the author writes:

I wanted to tackle this for a minute.¹  I would have to agree that the NEXUS is not selling as well as, well, most other smart phones on the market right now, but on the other hand let’s balance the assessment by pointing out a couple things contained in the short post above.

1.  The forecast anticipates selling 1 million units by the end of 2010.   This is actually quite a  significant figure for a phone that really only works best (for now) with T-Mobile.

2.  The Nexus is only “sold directly by Google.”  In fact, let’s be more pointed with this: it’s only sold by Google, through an online purchase.  Imagine if the only way to get an iPhone was through the Apple Store site.  Would they still have sold millions? Yes, undoubtedly, but one cannot discount the tremendous boost Apple received by having their products in the hands of thousands of people nationwide, simultaneously.  Not to mention the tremendous press coverage of the “long lines waiting to get their hands on their first iPhone” that we saw in every news media market.

Now, a million units sold in 1 year is relatively trivial compared to the numbers of even the iPhone 1st generation phone.  That said, consider the deck that Google has elected to stack against itself.

T-Mobile is a good and worthy network, so I am told.  But more often than not, people talk about it as if it is the little sibling of the  ”big 3″ when people talk about their cell-carriers.  I think I can count on one hand (without resorting to binary)  the number of friends and colleagues that use T-Mobile.  Selling a million units for a phone that is, out of the box, tied to a company with http://en.wikipedia.org/wiki/T-Mobile_USA is “not too shabby.”  (This compares right now with AT&T having approximately 85 million wireless customers.)  Given the large numbers of people who are locked in to their existing contracts, I don’t see many people switching carriers, especially since they are not afforded the opportunity to “try before they buy.”  (See next point)

Additionally, the decision by Google to only sell the Nexus online, through their website, has to hamstring their sales.  I may like tech, but when it comes to dropping $500 or more on a phone (and/or getting a long term contract) I want to be able to touch it first, see how it feels and responds in my hands, and feel like I was an informed consumer when  I make  my decision.  I suspect I am not alone.  More than once I have driven past our local T-Mobile store thinking that, if only they had a Nexus in the store, I would stop and at least test the waters.  I suspect that, if I could go in to a T-Mobile and not only play with the phone a bit, but talk with them about the affordability of switching from AT&T to T-Mobile, I would make the switch.  And again, I suspect I am not alone.

Finally, early reports of lack-luster customer support by Google has most likely scared off a number of would-be consumers.  Take away the store front/salesperson access, and market your phone on a network that would require me to switch carriers, and I am going to want, nay expect, a rather significant online and “on phone” support structure.   Unfortunately, Google has grown a culture based around offering “free” and “Beta” services.  Expectations of support for “free” services are far lower than expectations when one spends a significant amount of cash.

And make no mistake–$500 is significant.

In the final (as of today) analysis, I would say that 1 million units sold is actually a remarkable number given that Google has left the confines of their “core competency” (which I will describe as creating free and innovative software-based experiences) and ventured in to the world of offering “for sale” hardware products.²  Additionally, they seem to be wanting to “play by the rules” of traditional retailing instead of breaking new ground in the cellphone industry (as was speculated prior to the offering of the Nexus).

What does the future really hold for the Nexus line?  It is now a waiting game, I suppose.  Imagine Google addressing even 1 of the issues above. An expansion to another network (such as a Verizon or AT&T) or even the opening of sales at T-Mobile stores could make a significant difference for the phone.  Or, perhaps they utimately will rewrite the rules for cell-phones, offering free phones to those that actively use Google services, extending the Ad Revenue model to a whole new domain.

Considering the mis-steps one can only conclude that the Nexus succeeds, despite itself.

A colleague of mine is a great friend. He would do anything for me, or for anyone for that matter. He honestly (and rightly) believes that we should do unto our neighbors as we would want them to do for us. My friend is a great man. I truly admire him and the heart he has for those around him.

He is also a self-professed liberal. This is not surprising. He believes that we need to look out for our neighbors, and his view of neighbor is expansive. So understandably (I hop) I found myself pondering if I am missing something. Is there something “great” about liberalism as we know it today? And if it is “great” does that mean conservatism somehow misses the boat?

After much reflection, I realized that we have two problems facing us. First, the liberal ideal of caring for those around you is not only a good one, it’s Biblical. We are called on by Christ to love our neighbors. And Christ didn’t draw any neighborhood boundaries, either. On the other hand, we are faced with an ever-enlarging government that, despite all the best intentions and heartfelt goodwill, never seems to deliver on the “big promises.”

My conclusion? Liberalism doesn’t scale–and it wasn’t ever intended to. For us to love our neighbor we must be in contact with our neighbors. We can care best for those we touch. I suspect this was designed into our nature.

There have been many articles and books written, speeches given, and studies done, identifying that we respond more positively, and give more freely, to concerns closer to home. So we are hard-wired to care for those around us. This “local giving” may not be motivated from a pure heart, but at least we know it happens. Superfreakonomics gives us a perspective on this altruism: ‘Most giving is, as economists call it, impure altruism or warm-glow altruism. You give not only because you want to help but because it makes you look good, or feel good, or perhaps feel less bad.”]

So we, for whatever reasons or motivations, generally want to help our neighbors. Surely that extends to those we cannot see, correct? Well, the authors of the book SuperFreakonomics would perhaps argue no. Not only do they essentially argue that liberalism doesn’t scale, they go a step further and discusses research that indicates that, when given an opportunity, people will not only fail to behave benevolently towards their neighbor, they will in fact, cheat them. But what is most interesting here, is that, in the research they discussed, the cheating occurred most often between people who were not neighbors. “In the data, List found an interesting split: the out-of-town dealers cheated more often than the locals.”

So here is where I believe liberalism, or altruism, fails. When we ask the government to step in and perform altruistic acts, we ask the government to do a few things on our behalf:
1. We want an non-person to demonstrate humanity. We ask that the government “care.”
2. We want the government to make the “right” choices about what and whom to care for. Of course, we find that often that means bringing the “bacon” (or “Pork”) back to our own districts, where we “see the need.”
3. We want the government to do all this, without actually requiring that we pay for it, and simultaneously wanting the government to make sure someone else pays for it (“raise the taxes on the wealthy.”)

So over time, we find that government is called on less to be altruistic on a grand scale, and becomes for nearly all a way to force others to give money to causes and people they otherwise might not support, while simultaneously bringing resources to bear on my own local problems. Government then takes on the roll of proxy for the same local concerns we used to care for ourselves!

This is, of course, simply a blog. I make no pretense of conducting large scale research myself on this topic. I am simply tying together my readings, and my observations of the world around me. It seems to me that most people want to help those close to them, and most when presented with true and compelling need or tragedy, will give. But when we rely on our government to function on our behalf we become disconnected. We no longer have those “feel good” moments that cause us to practice “warm glow altruism.” Government

And then, over time, we stop caring.

CV THON was a great success, raising $61,792.02 For The Kids and the Four Diamonds Fund.
As is the tradition at THONs the kids at CV put together their line-dance, combining their message, with a summary of their school year, with exercises to keep them awake through THON.

Here is a video of the first of the linedances of the night.

Oh–and it’s never too late to donate to THON and the Four Diamonds Fund.

Donations can be sent to:
CV Four Diamonds Fund
Cumberland Valley High School
6746 Carlisle Pike
Mechanicsburg, PA 17050
Attn: Elizabeth Rimpfel

As I write this Cumberland Valley High school’s THON starts in a little less than 3 hours. For the next 15+ hours hundreds of High School kids, teachers, administrators and adult volunteers will me dancing the night away, and continuing to raise money as they all join hands and hearts in their fight against pediatric Cancer.

I have written about this all week, and I wanted to take another couple of minutes to remind you, dear reader, why they are doing this.

(Paraphrased from the Four Diamonds site “About us“) CV HS joins many other schools, and Penn State, in helping raise money for the Four Diamonds Fund. This fund was started in 1972 by Charles and Irma Millard soon after their son, Christopher, died of cancer at 14 years of age. They named the fund after a story their son wrote while battling cancer. In that story, he wrote about a knight that had to find the four diamonds of Courage, Wisdom, Honesty, and Strength. You can read his story, by visiting the Four Diamonds Fund site.

The students at Cumberland Valley HS have worked tirelessly through this year raising funds, and they have been doing this for 4 years (according to the Four Diamonds site) and last year, they raised $55,500 for the Four Diamonds Fund–the second largest school mini-thon amount!

Let’s give credit where it’s due. CVHS isn’t alone. Central Dauphin HS (15 yrs running a mini thon) raised $68,612 in 2009. All told, for the 2008-09 school year 38 schools (from elementary schools through HS) raised over 3/4 of a MILLION dollars for the Fund.

Please, consider a donation to CV THON. Visit their website at http://CVSCHOOLS.ORG/THON and go to “Donors” (or, simply Click Here!)

All the schools unite with one hope, one dream, one cause–to stop Childhood cancer. And they do it for one reason: FOR THE KIDS.

So in the spirit of unity, today, I will include a Central Dauphin THON Dodgeball Video.

We have been bracing here on the North-Eastern seaboard of the United States for what some have taken to labeling the “Snowicane” that is coming which some said would make our previous Snowmageddon pale in comparison. The true “blizzard of ‘10″ is said to bring large amounts of snow to many areas, and extremely high winds creating near blizzard conditions for even areas with limited snow accumulations.

The THON Team at Cumberland Valley >are not afraid. They have been planning and working, and fund-raising, year round, anticipating their “big event.” They apparently also have an “in” with God. In looking at the weather maps, and they way the storm will swirl about Pennsylvania, it appears our portion of South-Central PA will emerge relatively unscathed and, more importantly, with no school cancellations that would have a negating effect on CV THON.

So I am left with two requests: Pray for “no snow.” And, when it comes to donations, “Pray for Rain.” Pray, that our community will continue to reach out, and touch hundreds of lives through the love and dedication of these high school kids!

I am posting a triple video threat today. First, I wanted to share a video from Penn State’s THON in 2009, entitled “Where are They Now.” A powerful testimony to the love and devotion the THON has, and the impact the Four Diamonds Fund has had on children 10 15, or 20 years after they were diagnosed with pediatric cancer.

The second video shows just home much fun CV THON students have, as they find creative ways to not only raise money For The Kids, but to do it while having fun with each other (This time–dodge-ball.) Check the schedule. They have this Dodge Ball TOURNAMENT scheduled DURING CV THON! According to Matthew, they have about 30 teams — “It’s EPIC.”

Finally, no plea for you, dear readers, to “Pray for Rain” would be complete without including the song from PFR.

FOR THE KIDS!

Where are They Now

DODGEBALL

PFR

As you have read here Penn State’s THON was another ringing success, raising over $7.8 million in funds (and increasing the awareness) for the fight against pediatric cancer.  As I mentioned before, the funds raised go the Four Diamonds Fund which has, as it’s mission:

…to conquer childhood cancer by assisting children treated at Penn State Hershey Children’s Hospital and their families through superior care, comprehensive support, and innovative research.

Any family with a child being treated for pediatric cancer at Penn StateHershey Children’s Hospital is automatically eligible for support.

But wait-there’s MORE!

Cumberland Valley High School has their THON Dance Marathon this coming weekend.  High school kids couldn’t sit by and watch Penn State students raise all the funds.  They too were moved to help in the fight against childhood cancer.  They too wanted to contribute in not only money, but time and passion.  They too wanted to dance to victory over Pediatric Cancer.

So they will have their THON dance, February 27th-28th, 2010.  Learn more about CV Thon here.  Or see pictures from last year’s CV THON.

You can support CV THON by donating directly to the Four Diamonds Fund.  Just visit their site at: http://www.pennstatehershey.org/web/development/give

Oh, and watch these videos.

Penn State’s student-run philanthropic organization raise $7,838,054.36 for the Four Diamonds Foundation! While THON was this past weekend, the efforts to raise money “For The Kids” is a year ’round endeavor.

Take the time to read about THON, and the Four Diamonds Foundation, and please, donate. Any amount helps. Go visit http://THON.org

And while you are thinking THON, remember, Cumberland Valley HS will be hosting their CV THON this coming weekend–and the proceeds there go to the Four Diamond Foundation as well, visit http://www.cvschools.org/thon

I wanted to share the LIVE streaming video from Penn State’s THON Dance Marathon.

Every year at Penn State the largest student-run philanthropic organization pulls together with the Dance Marathon called THON that culminates a year-long effort at fund raising. The funds raised go to the Four Diamonds Foundation providing support to children with cancer and their families.  From THON.org:

In 1973, a small group of dedicated Penn State students held our first Dance Marathon. That year, 34 dancers participated and raised $2,000. Since then, THON’s presence in the Penn State community has grown exponentially. THON now has 15,000 student volunteers, 700 dancers, and has raised more than $61 million, benefiting The Four Diamonds Fund at Penn State Children’s Hospital.

Last year, THON helped raise 7.4 MILLION dollars for the Four Diamonds Foundation.

To learn more about THON and to make your donation to help fight pediatric cancer, watch the streaming vide, and visit THON.org.

FOR THE KIDS!

Free Videos by Ustream.TV

We get to join the rest of the East Coast in enjoying the “Great Snow of 2010″ (and no, it’s not a statement on the political climate.)  I chose to share our experiences in a short video.

Enjoy.

Once again we can’t turn on a news reader on the internet without be reminded of the Great Steve (not me–Jobs) and how he always has the “right sense” for business.  In addition to his design sense, and ability to time the introduction of products perfectly, many often credit him with “saving” the music industry by making music affordable at just 99 cents per song.

But could he have lost his touch? Could Steve Jobs and Apple not only missed it this time, but could they be responsible for bringing down a whole nascent industry with them?

On the heels of the introduction of the Apple iPad (and their announcement that books would cost between $13 and $15) we saw an emboldened Macmillan publishing house pressing their case against Amazon.  For a brief moment Amazon seemed to be fighting the good fight for consumers, and went so far as to ban direct sales of Macmillan books.

Macmillan was simply “acting out” what Steve Jobs told to Walt Mossberg when he said that the prices would end up being the same (between Apple and Amazon), because the publishers are not happy (with Amazon) and are going to pull their books from there.  It appears that Steve Jobs is doing the work of the Publishers, pushing the price points up, rather than down.  Rather than being a champion of the individual, does this make Steve Jobs simply a big business “hack?”

The bottom line here really is that Amazon knew 2 years ago what Steve Jobs should know now. Verso Direct has conducted a book buyers behavioral study/survey, in which they discover that the magic price-point for digital books seems to be right at $9.99.  According to the article “Amazon Flanks…” when Verso presented their study and broke down their findings, they reported that 3 out of 5 people will consider buying an ebook at or below $9.99.  Raise the price, and that drops to 1 out of 5.

The article then goes on to identify the real “winners” as pirates.

Is it possible that, in his rush to kill Amazon, Steve Jobs may have instead spell the death of eBooks?¹