Startups Adjust to Web’s Down Cycle

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Some companies that were preparing for a public offering after Facebook’s May IPO have shelved those plans. Others are distancing their businesses from those of Zynga and Groupon, amid concerns their companies will be tarred by the same brush. And some have watched their user growth trail off and are working to recapture the viral magic they once experienced.

Several Web startups have closed shop entirely. Color Labs Inc. raised $41 million in venture capital last year before even launching its social photo app for mobile devices, but it has since imploded and the app won’t be available after Dec. 31.

“There’s less heat in and around the SoLoMo market,” said Brian O’Malley, a venture capitalist at Battery Ventures in Menlo Park, Calif. “For a while, there was a suspended disbelief about how hard it is to build a company. Now that’s coming back to bite people.”

William Shatner Joins the App Crowd

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Did you ever have something you wanted to say, but didn‘t know how to say it? Now William Shatner has an app for that.

The iconic actor of the Star Trek series and performer of spoken word albums is starring in a new role as the voice of a new app, called “Shatoetry.“

The app, which costs $2.99 for the iPhone and was released Thursday after more than a year of development, relies on Mr. Shatner‘s trademark larger-than-life voice and mixes one of around 400 words together into a very Shatner-esque sentence, which the developers call a “Shatism.“

Apple Makes a Wrong Turn as Users Blast Map Switch

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Apple Inc.’s move to replace Google Inc.’s mapping software with its own on its mobile devices sparked a world-wide consumer backlash, marking a rare strategic blunder by a company more accustomed to rave reviews from users.

As Apple prepped its stores for the first sales of the iPhone 5 on Friday, the company faced vociferous complaints from consumers over the mapping application it released this week, which replaces the Google maps that have been part of the iPhone since the device’s initial 2007 release. The new maps come installed on the iPhone 5 and will be seen by other users who upgrade their iPhones and iPads to the company’s latest iOS 6 mobile operating system.

Apple Gave Few Phones to Other Retailers

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Apple Inc.’s new iPhone 5 remained a hot item following the sales kickoff Friday, with customers flocking to stores to buy the new handset. But they seemed to have little luck finding the gadget at the Silicon Valley company’s retail partners.

While Apple’s own stores appeared to be selling the new device in large numbers, other retail chains that offered the device had limited quantities from the outset, according to sales staff in stores and other people familiar with the situation.

Shortages have hit Apple partners in the past, but the disparity seemed more pronounced this time.

Apple Retail Chief Admits Staffing Mistake

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Apple Inc.’s retail boss told employees the company made mistakes with its staffing levels, leading to news reports that the company was cutting employees, according to two people familiar with the matter.

In a communication with store leadership teams, senior vice president of retail, John Browett, who took the reins of Apple’s retail stores in April, said the company had been trying a new staffing formula for its retail stores.

Apple Stores to Match Discounts on iPhones

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The company has begun telling retail employees that they may offer discounts of $49 on the iPhone 4S and the iPhone 4 to customers who cite lower prices from other outlets, according to two people familiar with the matter.

The outlets include stores operated by Target Corp., Best Buy Co. and Sprint Nextel Corp., according to Apple‘s communications with employees.

Apple’s Secrets Revealed at Trial

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Apple Inc., one of the world’s most secretive companies, is finding there’s a price in pushing its grievances against rival Samsung Electronics Co. in federal court: disclosure.

In just the first few days of its patent trial this week, Apple has publicly discussed how it created the iPhone and iPad, showed early designs of the devices and described intimate details about its product team.

Microsoft Pulls From Apple Playbook With Surface Tablet

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Microsoft Corp.’s first personal computer, the Surface tablet, provides further evidence that Apple Inc.’s strategies and success continue to shake up the tech sector.

The software giant is for the first time emulating Apple’s longtime practice of managing both elements in a computing device—one that will directly compete with products from its biggest customers.

Though insisting it remains committed to helping other hardware companies make successful tablets using its software, Microsoft also endorsed Apple’s philosophy in forceful terms.

“We believe that any intersection between human and machine can be made better when all aspects of the experience—hardware and software—are considered and working together,” said Steve Ballmer, Microsoft’s chief executive, during the Surface launch event Monday.

Apple Raising Pay for Retail Workers

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Employees began learning of the raises in face-to-face meetings with managers last week, according to three Apple employees in various regions across the U.S. The raises, which are based on performance, will begin appearing in paychecks around the middle of July, two of these people said.

Employees said they were appreciative of the move, though they considered the raises had been a long time coming. The increased wages, one person said, more accurately reflected Apple’s position as a high-end retailer.

AT&T Hints at Charges for FaceTime Users

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Software developers using a pre-release version of Apple Inc.‘s iPhone operating system have hit a roadblock while trying to access the popular video-calling application FaceTime on AT&T Inc.‘s cellular network.

The sudden change has prompted speculation that AT&T is gearing up to charge users for the data-intensive application. That‘s because a new notice about the restriction in the software strongly resembles a notification that emerged in another pre-release version of the software two years ago. At that time, the alert appeared just before AT&T began allowing users to pay for tethering, which permits other devices to use the phone‘s network connection.