By Ian Sherr

In an era of fast-food cappuccinos and drive-through coffee shops, Blue Bottle Coffee Co. is banking on slowing things down to help itself grow.

Since the Oakland-based coffee company’s founding in 2002, its revenue has jumped an average of about 50% annually to between $15 million and $20 million last year, according to James Freeman, founder and chief executive. As the company continues to expand—with plans to enter Manhattan in the next month of so—Blue Bottle could have more than 200 employees by the end of this year, up from about 70 two years ago.

Blue Bottle’s concept is slow coffee, an unusual offering in today’s coffee-retail industry. Brewing a cup of Blue Bottle coffee is a laborious process that can take up to five minutes, including the time it takes a barista to grind the beans and pour the grounds into a filter suspended above a cup before water is added on top.

The process takes substantially more time than it does to get a typical cup of coffee from shops like Starbucks, raising questions about how many customers would be willing to wait for a cup of joe from Blue Bottle and whether they can taste the difference.

But so far, this slow style—which Mr. Freeman says has become popular in Britain in recent years—has helped Blue Bottle and rival Bay Area practitioners of the art, like Ritual Coffee Roasters, develop a devoted customer base.

“It’s really excellent” coffee, says Jayn Pettingill, a local 48-year-old musician and music librarian. She says she buys only Blue Bottle beans for coffee at home because the company delivers the most consistent good taste she can find.

Still, Blue Bottle faces the usual limitations of an artisan food business. Its coffee is pricey, with a standard 12-ounce cup costing about a dollar more than the roughly $1.65 charged at Starbucks.

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(Originally published Feb 2, 2012, in the Wall Street Journal.)

By Ian Sherr

LAS VEGAS—Auto makers want their cars to be able to drive into the cloud.

Manufacturers like General Motors Co., Ford Motor Co. and Daimler AG’s Mercedes-Benz Cars division are using the Consumer Electronics Show here to show off a set of computer services that operate online, or through the “cloud,” and allow customers to remotely track their cars, diagnose what’s wrong with them and potentially avoid collisions.

The products are part of efforts among car makers to use the Internet to offer features that have become commonplace throughout the technology industry. Along with that, though, come the problems associated with accumulating so much consumer data, specifically how that information is used and protected.

“It’s bringing about a new automotive era in my eyes, where cars will have intelligence,” said Thilo Koslowski, analyst for Gartner. “The car will become more than getting from ‘point a’ to ‘point b,’ but it will become self-aware of what’s happening around it, what’s happening to it and even what’s happening to the driver.”

GM’s OnStar unit said it would offer mobile application developers access to its computer systems that send and receive data from the cars of six million subscribers. With access to OnStar’s systems, mobile apps would be able to beam trip plans to the car’s navigation system or pinpoint the car’s location. “We’re not just talking about putting an app in the car,” said Vijay Iyer, an OnStar spokesman. “This is about giving access to vehicle-centric information.”

However, growing volumes of that information will present privacy dilemmas for the auto makers, not unlike what social networks and credit-card companies have faced. While auto makers are confident they are protecting the data and are quick to note that customers are opting into these programs, industry observers say the auto companies will likely make mistakes along the way.

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(Originally published Jan 13, 2012, in the Wall Street Journal.)

By Ian Sherr

Vizio Inc., which shook up the market with inexpensive high-definition televisions, now wants to become a computer manufacturer.

The Irvine, Calif., company, which ranks as one of the top sellers of televisions in the U.S., plans to show a line of thin laptop computers and all-in-one desktop PCs running Microsoft Corp.’s Windows software next week at the Consumer Electronics Show in Las Vegas.

Vizio, which also produces Blu-ray players and a tablet, says it worked on its computer designs for two years in attempts to offer an aesthetic that competes with Apple Inc.’s popular products but at a lower price.

Vizio says it spent months, for example, shaving millimeters from its desktop computer so the central processing chip could hide in a sleek base while the screen stands attached to its thin aluminum neck.

“It doesn’t look mechanical or industrial,” said Matthew McRae, Vizio’s technology chief. “The industrial design is something we sweat.”

The closely held company said it is well aware it is entering an already crowded market. Hewlett-Packard Co., Lenovo Group Ltd., Dell Inc., Acer Inc., Toshiba Corp. and Asustek Computer Inc. are among the competitors that have staked out nearly all of the computer market. Most compete for attention from either price-conscious consumers or value-focused corporate customers.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Jan. 7, 2012, in the Wall Street Journal.)

By Ian Sherr

Apple Inc.’s claims that some smartphones running Google Inc.’s Android software copy its inventions are approaching their first big judgment day in the U.S.

The International Trade Commission in Washington on Wednesday is expected to rule on whether some phones made by HTC Corp. violate Apple’s patents. The ruling could lead to a ban on handsets sold by the Taiwanese company, which uses the Android operating system and had the second-largest share of smartphone subscribers in the U.S. market for the three months ended in October, according to research firm Nielsen.

HTC isn’t alone. Apple has been tangling in courts with other prominent Android device makers, including Samsung Electronics Co. and Motorola Mobility Holdings Inc. The cases reflect the Cupertino, Calif., company’s belief that many competing smartphones violate features that Apple popularized with its iPhone and iPad tablet computer.

Apple isn’t the only one complaining. The smartphone market has experienced a surge in patent litigation over the past few years as large and small players seek to hobble competitors or take share of their success through damage awards or negotiated settlements.

It’s an attractive opportunity. More than 645 million smartphones are expected to be sold world-wide next year, according to research firm Gartner Inc., jumping nearly 40% from this year’s forecast. By comparison, sales of personal computers are expected to grow 4.5% to about 370 million units next year.

By Jessica E. Vascellaro and Ian Sherr

When thousands of fans line up for Apple Inc.’s opening of its Grand Central Terminal store Friday, many won’t be queuing to ogle iPads.

They’ll be there for the T-shirts.

Since Apple opened its first stores in 2001, it has handed out tees sporting the new store’s name to the first 1,000 or so people through the door.

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(Originally published Dec. 9, 2011 on the front page of the Wall Street Journal.)

By Ian Sherr

When Whole Foods Market Inc. opened a store in San Francisco’s Haight-Ashbury early this year, many locals and community leaders hoped it would help improve a grungy corner of their famous neighborhood. Nearly a year later, they’re still waiting.

Since the upscale market opened in February across from a section of Golden Gate Park known as Alvord Lake, known for attracting drug dealers and homeless people, crime within a 500-foot radius of the store has shot up, according to the San Francisco Police Department. At the same time, Whole Foods hasn’t lifted the overall neighborhood’s business prospects, sales-tax receipts data from the San Francisco Comptroller’s Office show.

While the Whole Foods store has brought new customers to the neighborhood, changing the feel of the area, “the riffraff hasn’t gone away,” says Joe Goldmark, who co-owns an Amoeba Music store across the street from the store.

For its part, Whole Foods has tried to meet these challenges. It hired security guards and one plainclothes officer who are at the store throughout the day. The store’s management also regularly confer with police about crime in the area.

The company has also tried to help improve the local economy in Haight-Ashbury by partnering with local food producers in its efforts to offer healthy food to customers. “We’re always concerned about the neighborhoods we’re in,” said Libba Letton, a Whole Foods spokeswoman, who added that the store’s managers are always looking for more ways to help the community.

Whole Foods’ experience in Haight-Ashbury so far shows how nearly a half-century after the 1960s “Summer of Love,” when thousands of people swarmed the neighborhood as part of the counterculture movement, the area is still grappling with the uneven gentrification unfolding there.

Today, vacationers flock to the area to snap pictures of the famous intersection at Haight and Ashbury streets. The neighborhood has become a destination for tech workers, as well as aging hippies and runaway youths. Amid that mix, property values have risen over the years, but some areas, like the end of Haight Street that Whole Foods inhabits, have improved at a snail’s pace.

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(Originally published Dec. 8, 2011, in the Wall Street Journal.)

By Ian Sherr

Videogame retailer GameStop Corp. plans to begin selling tablet-style computers as part of an effort to expand its gaming device offerings.

The company plans to begin selling tablets based on Google Inc.’s Android mobile operating system during the holiday season at 200 of its U.S. stores on Friday. GameStop’s pilot program will include specialized tablets made by Asustek Computer Inc., Acer Inc. and Samsung Electronics Inc.

The devices, which will sell for their typical sticker prices in competing stores, will come with a set of seven free games, including Electronic Arts Inc.’s “Dead Space” sci-fi shooter and “Madden NFL” football game, as well as links to the GameStop’s mobile application store, called “Kongregate Arcade,” and the Android app marketplace.

“Customers have been telling us that they like to game on multiple devices,” said J. Paul Raines, GameStop’s chief executive. “We believe there is a gaming opportunity on tablets.”

Analysts are more skeptical, citing poor sales of Android-based tablets and a dearth of games that have enticed the dedicated gaming audience that GameStop tends to attract. Cost is another factor, said Michael Pachter, an analyst at Wedbush Securities, who added that any asking prices around $400 or $500 will be challenging.

“I don’t think anyone is going to buy one,” he said.

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(Originally published Oct. 31, 2011, in the Wall Street Journal.)

By Ian Sherr

Sony Corp. is preparing to release its first major game for the PlayStation Network online gaming service since hackers broke in and stole account information from millions of users earlier this year.

The game’s release marks a milestone for the Japanese electronics giant in its ongoing recovery from the hacking attacks that occurred in mid-April, which compromised the personal information of roughly 77 million accounts in the system.

Sony voluntarily shut down its network for roughly a month, slowly bringing back different levels of functionality over time. The company said 94% of preoutage activity returned immediately, and that it hit 100% over the summer. The company says it has also added 3 million accounts since the outage.

This holiday season, led by Sony’s “Uncharted 3: Drake’s Deception,” will be the next test of the system. The game will be released on Nov. 1, and will join this year’s slate of high-profile games that rely heavily on network components, including Activision Blizzard Inc.’s “Call of Duty: Modern Warfare 3″ game and Electronic Arts Inc.’s “Battlefield 3.”

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Oct. 27, 2011 in the Wall Street Journal.)

By Jessica E. Vascellaro and Ian Sherr

Apple Inc. executives and advisers rallied employees to maintain Steve Jobs’s legacy on Wednesday, as the celebrations of the Apple co-founder’s life continued two weeks after his death.

Tens of thousands of employees tuned into a private memorial for Mr. Jobs on Apple’s Cupertino, Calif., campus that was also streamed to offices and Apple retail store locations world-wide.

Apple Chief Executive Tim Cook, who took over as CEO as Mr. Jobs’s health worsened in August, got choked up as he discussed his friendship with Mr. Jobs and his desire for excellence, according to two employees who tuned in. Two Apple board members—former Vice President Al Gore and Bill Campbell, Mr. Jobs’s longtime friend who is chairman of Intuit Inc.— also spoke, according to the people who attended.

Mr. Campbell shared a story about “Siri,” the company’s “intelligent” personal assistant that Apple recently shipped with its new iPhone 4S. Mr. Campbell said when the company began development of Siri, Mr. Jobs demanded he try the product, while another executive said the voice-recognition wasn’t ready yet.

Mr. Jobs then asked Siri whether it was a man or a woman, according to Mr. Campbell, who said Siri responded that it hadn’t been assigned a gender yet.

In other remarks, Jonathan Ive, Apple’s senior vice president for industrial design, discussed some of Mr. Jobs’s quirks, including his high standards for hotels and penchant for making them switch to nicer ones on road trips, according to one attendee. Mr. Ive, who described Mr. Jobs as his best friend, said that his boss had a habit of calling some potential product designs “dopey,” according to one attendee. But when Mr. Jobs saw the iPhone, he was initially silent and then gave it the nod, Mr. Ive said.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Oct. 20, 2011 in the Wall Street Journal.)

By Ian Sherr

Apple plans to close some of its retail stores for at least an hour Wednesday, according to two people familiar with the matter, a gesture that coincides with the company’s planned celebration of co-founder Steve Jobs’s life at its headquarters.

Retail employees were informed that a private company event was scheduled and that the retail stores will temporarily close during that time, according to two people who work for Apple but aren’t authorized to speak on its behalf. One of the employees said the event would last for up to three hours.

Apple hasn’t told retail employees why it plans to temporarily close the stores during normal working hours, though these people note that such closings rarely happen for events other than special product launches. Some retail employees were told about the meeting over the phone rather than by a widely distributed internal message, one person said.

Apple is planning a celebration of co-founder Steve Jobs’s life at its Cupertino, Calif. headquarters Wednesday. Chief Executive Tim Cook said in an email to staff that the event, which comes two weeks after Jobs died following a long struggle with pancreatic cancer, was meant “to take time to remember the incredible things Steve achieved in his life and the many ways he made our world a better place.”

A small, private funeral was held on Oct. 7, followed by a much larger event for coworkers, friends and other industry executives last Sunday.

Apple reiterated that the celebration on Wednesday is for employees only.

(Originally published Oct. 18, 2011 in the Wall Street Journal and on wsj.com.)