STEERING DAMPERS

Picture this scene: you're on your favourite road, riding it like your very own TT course. You know every bump and ripple, every apex, every chamber. There are no surprises, and you're visualising each crest and braking point before it even comes into sight. Your bike feels like an extension of your body and your confidence has never been higher.
Swoop downhill, clip the apex, pick it up, and grab a massive handfull as the road opens up into a long, sweeping right-hander. Your added conviction means you hold a tighter line than ever before, scything toward the middle of the road. Then it happens, your bike bites back. Gassing it hard, glaring ahead, you barely notice the front-end's proximity to the center line. It's too late;the front wheel skims off the tarmac then clips a cat's eye. The bars snatch violently one way then the other. You're hanging on like a tortured chimp and your life's flashing before your eyes. Even if you do regain control, the brake pistons have been forced back and your stopping power has gone to hell. Basically, you're fucked! All you can do is wait for the pain. Yes, you've been tank-slapped.

Motorcycles are prone to two main modes of oscilation - wobble and weave. A tank-slapper is a high-frequency mode of wobble that causes violent steering oscilations. In other words, the steering snatches from side to side, similar to the caster shimmy that can occur in the front wheels of a supermarket shopping trolley.
Modern high-performance motorcycles have stiff frames and are most vulnerable to wobble at high speeds. They rely on steering dampers to stabilise high-speed wobble. The steering damper acts between the main frame and the steering assembly, and produces a torque that opposes the angular velocity of the steering assembly relative to the main frame. Even with a steering damper you are at risk from a tank-slapper. The flaw of steering dampers is that it reduces the risk of wobble but it rises the risk of weave. Because of this, only a narrow range of steering damping values are useable.

The BEST 10 steering dampers are :

1 - Arrow

2 - WP

3 - Matris M3
4 - FG Gubellini
5 - Öhlins

6 - GPR V4
7 - LSL Titan
8 - Toby
9 - Hyperpro RSC
10 - Sprint

NECK'S BIG THING

Top kit firm Alpinestars has unveilled its latest research project - the ACR (Alpinestars Cervical Road/race) neck protector. Designed to limit the movement of a rider's head during a crash, and thus minimise the chances of neck and back injury, the new protector was shown at the Jerez GP, on Red Bull Rookie rider JD Beach during practice. It currently fits inside the hump of an Alpinestars suit via a special bracket, although standalone versions may be available in the future. An offroad version is also being developed. The ACR works by limiting the movement of the head forward and backwards, preventing the hyperextension of the neck that causes paralysing injuries. There's no timescale for a commercial release of the ACR as yet, but watch this space for more news as it arrives.

Proposed 2009 AMA Superbike Rules

Proposed Equipment Standards for the 2009 AMA Superbike Class.

I know this is a lot to read, but there are some interested folks out there, I have to post it. Thanks!

All items not mentioned in the following articles must remain as originally produced by the manufacturer for the homologated machine.

EVERYTHING THAT IS NOT AUTHORISED AND PRESCRIBED IN THESE REGULATIONS IS STRICTLY FORBIDDEN

In addition, every motorcycle entered must meet the requirements listed in General Equipment Standards.

2.1 Homologation
a. Only homologated motorcycles may be used in Superbike competition.
b. Superbike motorcycles must be street certified in the US and available through US retail dealers.
Minimum import requirement per model is as follows:
1. Manufacturers with 99 or fewer US retail dealers - 150 units
2. Manufacturers with 100 - 199 US retail dealers - 300 units
3. Manufacturers with more than 200 US retail dealers - 400 units
c. See Homologation of Motorcycles under General Equipment Standards.

2.2 Superseded Parts
Superseded parts controlled by these rules must be submitted to AMA Pro Racing for review and approval before use in competition. In addition, these parts must then be listed in the current OEM parts list as supplied to AMA Pro Racing.

2.3 Engines
a. Engine Displacements
749cc - 1000cc 4-stroke four cylinders
901cc - 1200cc 4-stroke 2 cylinders (901cc - 1000cc 4-stroke 2 cylinders will continue with the 2008 rules through 2009 and then allowed to compete only after complying with the 2009 rules)
b. Engine type, configuration, stroke and any modifications of engine components to alter the stock OEM
firing order of the cylinders are not permitted.
c. The displacement capacity must remain at the homologated size. Modifying the bore and stroke to
reach class limits is not allowed.

2.4 Cylinders
a. Only the following modifications to the cylinders are allowed. Cylinder head gasket surface may be machined to allow the adjustment of compression ratio or resurfacing to repair a warped cylinder surface deck.
b. Homologated materials and castings for cylinders must be used.
c. Cylinder liners or coatings may be replaced or added.
2.5 Crankcase and all other Engine Cases (i.e. ignition case, clutch case).
a. Crankcases must remain as homologated. No modifications are allowed.
b. Engine case guards in the form of strengthened engine side covers or approved guards must be installed on certain models. Replacement covers must be no lighter in weight than the stock covers. See Engine under General Equipment Standards.
c. The countershaft cover may be removed.
d. The addition of a crankcase protector at the countershaft is allowed.

2.6 Cylinder heads
a. Cylinder heads must remain as homologated with the following modifications allowed.
b. Porting and polishing of the cylinder head normally associated with individual tuning such as gas flowing of the cylinder head, including the combustion chamber is allowed.
c. Welding or the addition of material is not allowed.
d. The compression ratio is unrestricted.
e. Combustion chamber may be modified.

2.7 Valves, Springs, and Retainers
a. Aftermarket or modified valves, springs, retainers and other valve-train components are permitted. The
original number of valves must be maintained.
b. Valve diameter and minimum weight, including stem, must remain as homologated.
c. Valves must remain in the same location and at the same angle as the homologated model.
d. The material and dimensions of the rocker arms (if any) must remain as homologated.

2.8 Camshafts and Sprockets
a. The original camshaft may be modified or replaced from those fitted to the homologated motorcycle.
b. The method of drive must remain as homologated.
c. The duration is unrestricted but the lift must remain as homologated.
d. The cam chain or cam belt tensioning device(s) are unrestricted.
e. Cam sprockets can be modified or replaced to allow the degreeing of camshafts.

2.9 Crankshaft
a. Crankshaft must remain as homologated with the following modifications allowed.
b. Balancing. This may only be achieved by the same method used by the OEM. For example, heavy metal (i.e. Mallory metal) inserts are not permitted unless they were originally specified by the OEM.
c. Bearing surfaces may be polished or surface treated.
d. Polishing and lightening of the crankshaft is not allowed.
e. Primary gears can not be changed or modified.

2.10 Connecting Rods
a. Connecting rods must remain as homologated. No modifications are allowed.
b. Polishing and lightening is not allowed.

2.11 Pistons
a. Pistons must remain as homologated. No modifications are allowed.
b. Polishing and lightening is not allowed.

2.12 Piston Rings
a. Piston rings must remain as homologated and installed. No modifications are allowed.

2.13 Piston Pins and Clips
a. Piston pins and clips must remain as homologated. No modifications are allowed.

2.14 Oil Pumps and Oil Lines and Water Pumps
a. Oil pump must remain as homologated. Modifications are allowed.
b. Oil lines may be modified or replaced. Oil lines containing positive pressure, if replaced, must be of metal reinforced construction with swaged or threaded connectors.
c. The internal parts of the water pump may be changed or modified. The drive ratio may be changed. The external appearance must remain as homologated.
d. Water lines may be modified or replaced.

2.15 Clutch
a. Clutch type (wet or dry) must remain as homologated.
b. Aftermarket, modified or stock-type clutches with back-torque limiting capabilities are permitted.

2.16 Transmission Shafts and Gear Sets
a. Two options are available for these components:
1. Stock transmission shafts and gear sets.
a. Undercutting and surface treatments are the only modifications allowed.
2. Approved transmission shafts and gear sets.
a. Each manufacturer will be permitted one alternative set of gear ratios per approved model.
b. Approved shafts and gears may be interchanged with stock components.
c. Undercutting and surface treatments are the only modifications allowed.
d. Only shafts and gears sold through the OEM distributor or its dealers are permitted.
e. Approved transmission components must be available individually or as a set to AMA Superbike-licensed riders for the entire current season (or the remaining part of the season).
f. Orders determined to be legitimate by AMA Pro Racing and accompanied by a 50% deposit must be filled within 15 business days of receipt by the OEM distributor or dealer.
g. Retail price of individual approved transmission components may not exceed twice the manufacturer's suggested retail price of the components they replace.
h. If a manufacturer does not offer optional AMA Pro Racing approved transmission components, then the stock components must be retained.

2.17 Fuel injection system and throttle-body assemblies
a. Fuel injection throttle body assemblies must remain as homologated.
b. Assemblies include all attached parts with the exception of fasteners, cables, cable actuating pulleys, flexible fuel lines, vacuum lines, air box connection tubes and velocity stacks.
c. Variable-length fuel injection intake tract devices that function while the engine is operating are prohibited unless it is standard equipment on the homologated OEM production model.
d. Fuel injectors may be replaced with aftermarket units provided the original mounting locations are maintained and no modifications are made to the throttle body assemblies for injector fitment. e. The total number of installed injectors must be the same as originally produced.
f. Secondary butterfly valves may be fixed in the open position.
g. Fuel pump and fuel pressure regulator must remain as homologated with no modifications.

2.18 Fuel Supply
a. Fuel petcocks may be modified or replaced.
b. Fuel lines may be replaced.
c. Quick connectors or dry break quick connectors may be used.
d. Fuel vent lines may be replaced.
e. Fuel filters may be added.

2.19 Engine Control System
a. Engine control system may be modified or replaced.
b. Wiring harness may be modified or replaced.
c. Spark plugs and plug wires may be replaced.

2.20 Generator
a. The generator may be modified or replaced.
b. The starting system, electrical or manual may be modified or replaced but must work.

2.21 Exhaust System
a. The exhaust pipes and silencers may be modified or replaced from those fitted to the homologated motorcycle.
b. The number of final exhaust silencer(s) must remain as homologated. The silencer(s) must be fitted to the same side as the homologated model.
c. Catalytic converters must be removed.
d. For safety reasons, the exposed edge(s) of the exhaust pipes(s) outlet(s) must be rounded to avoid sharp edges.

2.22 Radiators and oil coolers
a. The original radiator or oil cooler may be modified or replaced from those fitted to the homologated motorcycle.
b. Additional radiators and oil coolers are allowed.
c. Oil coolers must not be mounted on or above the rear mudguard.
d. The appearance from the front, rear and profile of the machine must in principle conform to the homologated shape after the addition of additional radiators or oil coolers.

2.23 Intake Air Boxes
a. Air box must remain as originally produced by the manufacturer on the homologated motorcycle.
b. Air filters, internal flap type valve, sensors and vacuum fittings may be removed, modified, or replaced with aftermarket parts. Any holes in the air box to the outside atmosphere resulting from the removal of components must be completely sealed from incoming air. All incoming air must pass through the original, unmodified air box inlets.
c. Ram air tubes or ducts may be modified, replaced with aftermarket parts or removed. If tubes/ducts are utilized, they must be attached to the original, unmodified air box inlets.
d. Velocity stacks may be modified, replaced with aftermarket parts or removed. The only modification permitted to the air box to allow use of alternate velocity stacks is the removal of internal debris deflectors/plates.

2.24 Frame and Sub Frame
a. The main Frame must remain as originally produced by the manufacturer for use on the homologated motorcycle with the following modifications allowed:
b. Strengthening gussets and tubes may be added, but none may be removed.
c. Accessory brackets (radiator, shock reservoir, stands, etc.) may be changed, relocated, added or removed. Holes may be drilled only for the purpose of attaching brackets or other components.
d. The homologated dimensions and the position of the steering head, engine, swing arm pivot point, rear shock, and suspension linkage mounting points must remain as homologated on the original machine.
e. The use of offset bearing races for the purpose of altering the steering angle is allowed.
f. Larger adjustable bearing seat cups may be welded into the stock bearing race location on the steering head. The body of the steering head column must remain unmodified and in its original position. (See drawing below)
g. The swing arm pivot location may only be adjusted if the design was part of the homologated frame.
h. Rear sub frame may be modified or replaced, but the material must remain as homologated.
i. Polishing of frame materials is not allowed.
j. Frame must display vehicle identification number.

2.25 Swingarm
a. Swingarm may be modified or replaced.
b. The use of carbon fiber or KevlarŽ materials are not allowed if not homologated on the original
machine.
c. Rear wheel stand mounts may be added to the swingarm by welding or by bolts. Brackets must have rounded edges (with a large radius). Mounting bolts must be recessed.

2.26 Front Forks
a. Front forks in whole or part may be modified or replaced from those fitted to the homologated motorcycle.
b. Front Forks must be the same type on the homologated motorcycle (leading link, telescopic, upside down, etc.).
c. The upper and lower fork clamps (triple clamp, fork bridges) including steering stem, can be changed or modified.
d. Steering damper may be added, relocated or replaced with an aftermarket damper.
e. The steering damper cannot act as a steering lock limiting device.
f. Active, semi-active or computer-controlled suspension units are not permitted.

2.27 Rear Shock
a. Rear suspension unit can be changed but a similar unit must be used (i.e. dual or single shock).
b. The rear suspension linkage may be modified or replaced.

2.28 Wheels
a. Wheels and associated parts may be modified or replaced from those fitted to the homologated motorcycle.
b. Carbon fiber or carbon composite wheels are not allowed.
c. Bearings, seals and axles may be altered or replaced from those fitted to the homologated motorcycle.
d. Rear wheel sprocket and brake rotor must remain with the wheel unless part of the original homologated design.
e. Maximum rear wheel rim width: 6.25 in.

2.29 Brakes
a. Front and rear master cylinder including lever/pedal may be modified or replaced from those fitted to the homologated motorcycle.
b. Front and rear calipers may be modified or replaced from those fitted to the homologated motorcycle.
c. Brake pads or shoes may be modified or replaced from those fitted to the homologated motorcycle.
d. Brake hoses and brake fittings may be modified or replaced from those fitted to the homologated
motorcycle.
e. Brake discs may be modified or replaced from those fitted to the homologated motorcycle.
f. The use of carbon fiber, carbon composite or titanium materials for brake discs is not allowed.

2.30 Tires
Any tire approved by the tire manufacturer for racing is allowed.

2.31 Fuel Tanks
a. Fuel tank may be modified or replaced provided that it maintains the stock appearance.
b. Non metallic fuel tanks are not allowed.
c. Fuel tanks may be modified to achieve a maximum capacity of 24 liters (6.341 gallons).
d. The fuel cap may be replaced with a quick-fill coupler and additional vent coupling. Both couplers must be installed in the top of the tank.
e. Maximum inner diameter of quick-fill or vent coupler is 63.5mm (2.5").
***See Dump Cans for Refueling under General Equipment Stand

2.32 Foot Rest/Foot Controls
a. Foot rest/foot controls may be may be modified, relocated or replaced from those fitted to the homologated motorcycle.
b. Foot rests may be rigidly mounted or a folding type which must incorporate a device to return to the normal position.
c. The end of the footrest must have an 8mm solid spherical radius.

2.33 Handle Bars and Hand Controls
a. Handle bars, hand controls and cables may be altered or replaced from those fitted to the homologated motorcycle.
b. Engine stop switch must be located on the handlebars.

2.34 Fairing and Bodywork
a. Fairing and bodywork, including the front fender and windscreen may be modified or replaced with aftermarket parts which resemble the originally approved parts in design and which maintain similar dimensions.
b. Construction must be of plastic or fiberglass (no carbon or carbon composite fiber)
c. See Fairing and Bodywork under General Equipment Standards for other restrictions and fluid containment.
d. With permission from the Race Manager or the Chief Technical Inspector, fairing or bodywork may be removed only if damaged at that particular meet. This does not include the oil retention portion of the lower fairing.

2.35 Seat
a. Seat may be altered or replaced from those fitted to the homologated motorcycle.
b. The top portion of the rear bodywork around the seat may be modified to a solo seat.
c. The solo seat then must incorporate the rear number plate.
d. The appearance from both front rear and profile must conform in principle to the homologated shape.
e. The seat/rear cowl must allow for proper number display.
f. All exposed edges must be rounded.
g. Construction must be of plastic or fiberglass (no carbon or carbon composite fiber)

2.36 Weight
Superbike minimum weight requirement:
a. 4 cylinder 370 pounds (without fuel) 375 pounds (with fuel)
b. 2 cylinder 385 pounds (without fuel) 390 pounds (with fuel)

2.37 The following items may be modified or replaced from those fitted to the
homologated motorcycle.
a. Any type of lubrication, brake or suspension fluid may be used.
b. Any type of spark plug and plug cap may be used.
c. Gasket and gasket material
d. Bearings (ball, roller, taper, plain, etc.) of any type or brand may be used.
e. Fasteners (nuts, bolts, screws etc.)
f. Main wiring harness and connectors.
g. Battery and switches.
h. Countershaft sprocket, rear wheel sprocket and chain.
i. Oil and fuel filters

2.38 The Following Items May Be Removed
a. Instrument and instrument bracket and associated cables.
b. Radiator fan and wiring
c. Cooling system thermostat
d. Chain guard.

2.39 Superbike Component Claiming Rules
a. The following Superbike components are subject to claiming by competitors or AMA Pro Racing at the prices listed when used in Superbike competition:
Fork assemblies $9,750.00
Shock absorber assembly $3,250
b. Claims will be accepted only from riders who competed in the same final event as the rider whose equipment is being claimed.
c. Claim form and cash or a certified check must be submitted to the Chief Technical Inspector within 30 minutes of the posting of results.
d. Once a claim is made, it may not be withdrawn.
e. Competitors or teams cannot claim their own equipment.
f. Should there be more than one claim for the same equipment, a drawing will be held to determine the successful claimant.
g. Upon notice, the rider whose equipment is being claimed must present the motorcycle for impound at tech inspection.
h. The owner of the claimed equipment must then accept the fee and deliver the specified components.
i. An eligible claimant is permitted only one successful claim per season.
j. Teams or individual competitors who have had a component claimed are not subject to an additional claim for a period of four meets within a season.

Robrady rMoto Concept: All-Electric Superbike

Design studio Robrady, having cut their teeth designing vehicles for brands such as Yamaha, Suzuki, and Buell, is showing off this on-paper concept called the 'rMoto,' an all-electrical super bike. While it's all a buzzy figment at the moment, it sounds like Robrady does intend to produce at least one prototype rMoto, perhaps just to show that it can be done.
The idea of an electric Superbike pleases everyone. The ecologists, because it will not emit any gases and it will still be a superbike, able to achieve high speeds to please the speed freaks around the world.

The rMOTO electric superbike will capitalize on ROBRADY resources and expertise, with its design projected to be driven by leading-edge technologies from ROBRADY business partners--many of them industry leaders.

Technologies expected to dignify the rMOTO concept include advanced motor controller and battery management capabilities; progressive instrumentation/information presentations; and ultra-efficient lighting, communication, and a hybrid-style charging system's.

The high-performance rMoto will also be assigned detailed ergonomics and the powerful ROBRADY signature aesthetic.

I would love to see and ride one myself. Hell, I would even buy one if I will get the chance and money for it. Keep riding safe!

British Superbikes, Mallory Park R9 - Race Day #1

A tragic weekend for BSB at Mallory Park this weekend for Superbike rider, Ollie Bridewell was unfortunately killed as he attempted to practice on Friday. A minutes silence was held for Ollie by everyone at the circuit, with many tears being shed. No doubt further questions over the circuits saftey will be raised as a result.

LB would like to extend it's deepest and sincerest sympathies to the Bridewell family and everyone affected by his loss. The paddock won't be the same with the lovable Ollie.

Shane 'Shakey' Bryne took the win in race one, with Ryuichi Kiyonari winning the second after his crash in race one.
The racing days at Mallory Park R9 are very nice to watch...very much fun, cool fast superbikes and nice girls.It's a must see if you ever go near the place.
Peace!

BMW buys Husqvarna

German firm buys Swedish dirtbike makers from Italians

Word reached from those lovely people at MV Agusta in Varese, Italy, that the firm has sold its Husqvarna subsidiary to BMW. Husqvarna, originally a Swedish firm, has been making big, hard dirt bikes for decades, including some real corkers. But it hasn't had such a big profile since being taken over by Agusta, and this could be just the jump both firms need. BMW's made a lot of cash from its enduro bikes over the years - especially the GS range. Adding Husqvarna's high-performance stable of proper offroad racers will expand its remit further in this direction. And some German rigour applied to its affairs can only help Husqvarna.

Triumph Daytona 675

As the first three-cylinder super sports middleweight the Daytona 675 stands alone in the most hotly contested arena in motorcycling. Of course it can be compared to many motorcycles – and on such occasions invariably comes out on top, but in one single stroke it’s redefined just how a middleweight sports bike should look and feel. If the Daytona 675’s unique DNA is a large part of its appeal, its stunning performance is the winning flourish.

As the first three-cylinder super sports middleweight the Daytona 675 stands alone in the most hotly contested arena in motorcycling. Of course it can be compared to many motorcycles – and on such occasions invariably comes out on top, but in one single stroke it’s redefined just how a middleweight sports bike should look and feel. If the Daytona 675’s unique DNA is a large part of its appeal, its stunning performance is the winning flourish.

Its 675cc, water-cooled three-cylinder 12-valve power unit is extremely compact and features Keihin closed-loop fuel injection and stacked six-speed close ratio gearbox. Peak power of 125PS (123bhp) is delivered at 12500rpm, with 72Nm (53ft.lbf) torque at 11750rpm. The standard exhaust features an efficient underseat end-can and also utilises a secondary valve to boost torque low down. While the Daytona 675’s engine is refined, the triple’s innate character remains with typical Triumph toughness engineered into every part.

The Daytona 675’s aluminium frame is fabricated with open-back cast spars, which wrap over the top of the motor, accentuating further the benefits of the narrow three-cylinder design. Suspension is provided by top quality fully adjustable 41mm upside down forks and piggyback reservoir rear shock, also fully adjustable. A radial master cylinder and twin radial four-piston calipers work on the front fully floating 308mm discs, which are matched by a 220mm rear disc and single piston caliper. The wheels are a lightweight five-spoke design with dimensions of 17 x 3.5in (front) and 17 x 5.5in (rear) and wear super sticky Pirelli Super Corsa road/track compound tyres. The Daytona 675’s digital instrument console has the usual trip functions as well as displaying average fuel economy. Also featured is a sophisticated lap timer – useful for comparing successive lap times on a circuit as well as average and maximum speed for each lap.

A programmable gear change indicator illuminates seven LEDs to let you know the optimum point at which to change up, for maximum performance: You can program in both the engine speed and the illumination sequence. The LCD panel also tells you which gear you are in at all times.

The Daytona 675 sits firmly within a class of one and delivers incredible performance with its exciting, powerful engine and intuitive, razor-sharp chassis. It looks, sounds and feels like nothing else. It has redrawn the super sports middleweight map and truly earned the praise heaped upon it by some of the toughest critics in the motorcycle press.

The Daytona 675 is incomparable. Find out for yourself by test riding one at your local Triumph dealer.

CASTIGLIONI - Written All Over It

Say Hello to the 200 BHP, limited edition Italian missile that will require a mortgage to aquire.
What bike would MV Augusta boss Claudio Castiglioni build for himself? Interesting quiestion, eh? Well, here's the answer - the MV Augusta F4CC. And he hasn't made just one, he's commisioned a run of 100. Each one will be hand-assembled to his exact specification using the finest materials known to humanity. It's yours, Signor, for a modest 100.000 euros. Just in case there's any doubt about authenticity, you'll get a boxed certificate of origin and a platinum top-yoke cover bearing the model number(from 1 to 100). It uses an F4 motor, bored out to 1,078cc,with countless trick internals and a titanium exhaust system - culminating in 200 BHP. Unlike many 'special edition' bikes, this one is definitely not just a standard bike with some nice bolt-ons. Ninety per cent of the components are tailor-made for this bike, and the black paint was designed to evoke a 'beautiful woman in a little black number'.Grrrr...

iPhone's call hard for carriers to resist

Despite all the hype about it being a "game-changer," Apple Inc.'s iPhone may actually live up to its promise when it arrives in Canada by driving wireless prices down, analysts say.

Apple unveiled the iPhone, which combines cellphone and iPod music player functions with Web-browsing features, last month in the United States through an exclusive deal with the country's largest wireless provider, AT&T Inc. Cupertino, Calif.-based Apple has not announced availability outside the United States, but industry expectations peg a Canadian and European release in the fourth quarter.

In Canada, the only compatible wireless network is owned by Rogers Communications Inc., making it the potential carrier for the device. Neither Apple nor Rogers will comment on a release here.
Most handset manufacturers sell their phones to a wireless carrier, which in turn controls the customer relationship. Apple, however, has reportedly made unusually strong demands of carriers, including dictating monthly service plans and demanding a cut of usage revenue.

Carriers are thus in the difficult position of having to give in to the demands or face outrage from customers who are clamouring for it, and some--including the world's largest, UK-based Vodafone Group PLC -- have given it a pass as a result.

"There is little negotiating with Apple. It's either take it or leave it," said RBC Capital Markets analyst Jonathan Allen. "Never before has a handset vendor wielded this much control over the carriers. If Rogers doesn't just take whatever Apple offers them and the launch gets delayed, then customers will be howling mad."

RBC estimates Apple has sold nearly one million iPhones in the two weeks since its launch.

It will ship a total of 13.5 million by the end of next year.

Existing wireless prices in Canada, however, would make the iPhone an expensive proposition for customers here. AT&T's basic service offering, which includes 5,450 voice minutes and unlimited data downloading, is US$59.99 a month. A comparable plan from Rogers, with significantly fewer minutes and less data allowance, would run to more than $140.

Apple will not tolerate any service plans that curb how much the customer can use the iPhone and will demand customers be offered terms similar to AT&T's, analysts said. In Canada, that will spur prices -- particularly on data usage--downward.

Rogers could opt to hold out for better terms from Apple, but the company would run the risk of being beaten to the punch. New wireless carriers such as MTS Allstream and Videotron Ltd. are on the horizon and momentum is building toward Rogers' competitors, Bell Canada Inc. and Telus Corp., upgrading their networks to be compatible with devices such as the iPhone.

"A new carrier could base their launch on the iPhone," said Iain Grant, president of The Seaboard Group telecommunications consultancy. "And wouldn't it be fun if [Telus chief executive Darren] Entwistle stole the iPhone from Rogers?"

The Iphone can damage wi-fi - apparently

A FEATURE on Apple's much hyped iPhoney has been killing off the wi-fi network at Duke University, apparently.

According to Network World, the built-in 802.11b/g adapters on several iPhones periodically flood sections of the school’s pervasive wireless LAN with MAC address requests. This temporarily knocks out up to 30 wireless access points at a time.

Fortunately not many people were on the campus and there are only 150 Iphones around. But network administrators are a bit worried that more of the wi-fi killer devices will arrive on campus when the students return in August. For some bizarre reason the Iphones are all asking for an invalid router address to request the MAC address of the destination node.

When it doesn’t get an answer, the thing refuses to take no for an answer and just keeps asking at a rate of 18,000 address requests per second. What a nag!

Cisco, the main WLAN provider is chatting to Apple about the problem but no-one has a clue what's up, it seems. While everyone knows it is Apple who is at fault, the maker of entertainment gear does not seem to be exactly pulling finger out to fix the problem.

Duke said that Apple has told him the problem is being 'escalated' but nothing had been heard from the Cappuccino based outfit at press time.

Apple might take it a little bit more seriously if its Iphones start bringing down corporate and metropolitan wi-fi systems. If indeed, the pesky little device is to blame in the first case.

Stores Post Lackluster Sales in June

The nation's consumers, uninspired by this season's fashions and rattled by high gas prices and the weak housing market, shopped gingerly last month, extending the misery of retailers who have struggled with a spending slowdown since February.

As merchants reported their June sales results Thursday, the disappointments cut across many segments of the industry including Macy's Inc., AnnTaylor Stores Corp. and trendy apparel chain Bebe Stores Inc. One notable exception was Wal-Mart Stores Inc., whose renewed emphasis on low prices helped drive sales gains above analysts' expectations.

``Retail sales are generally soft as we expected. Consumers look like they are holding back on discretionary purchases particularly in apparel,'' said Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass. He added that shoppers are ``facing a long list of headwinds as they head into the rest of the summer.''
According to Thomson Financial's latest sales tally, 12 retailers beat results, while 16 merchants missed projections. The sales tally is based on same-store sales, or business at stores open at least a year. They are the industry standard for measuring a retailer's health.

Retailers of what are known as discretionary merchandise such as apparel and home goods are coming under increasing pressure as consumers are forced to pay more for food and gasoline. The still-weakening housing market is also making shoppers shy about spending. But retailers have problems of their own, including a continuing absence of must-have fashions; this season's clothes, including baby doll style blouses, has not clicked with many women.

Wal-Mart, the world's largest retailer, had a 2.4 percent gain in same-store sales, beating the 0.8 percent predicted by analysts polled by Thomson Financial. The company said its aggressive price reduction strategy helped boost results, and it promised more aggressive price cuts for the back-to-school season.

``Consumers continue to be challenged financially, with more pressure on discretionary spending,'' said Eduardo Castro-Wright, Wal-Mart Stores U.S. president and chief executive officer, in a statement. ``Gas prices have moved to be their chief concern in our latest survey and they appreciate the opportunity to save on everything.''

The company said that as in the past four months of its fiscal year, grocery sales continue to be stronger than general merchandise. One exception was the entertainment category; flat-panel televisions, MP3 players and video game hardware enjoyed stronger gains compared to a year ago. Still, Wal-Mart continues to struggle with weak sales in its home and apparel areas.

Meanwhile, Costco Wholesale Corp. reported a 6 percent gain in same-store sales, in line with the 6.1 percent estimate.

Macy's suffered a 2.7 percent drop in same-stores sales, worse than the 0.8 percent decline expected.

J.C. Penney Co. Inc. had a 1.5 percent decline in same-store sales in its department store business, less than the 3.6 percent analysts expected. The retailer said sales picked up toward the end of the month, reflecting a strong initial response to back-to-school merchandise.

Limited Brands had a 3.0 percent gain, slightly better than the 2.9 percent forecast.

AnnTaylor suffered an 8.4 percent drop in same-store sales, dragged down by its lower-priced Loft division. Analysts expected a 4.7 percent decline.

Among teen retailers, Bebe posted a 5.4 percent drop in same-store sales, worse than the 2.2 percent projected decline. But Pacific Sunwear of California Inc. posted a 4.5 percent same-store sales increase, better than the 3.2 percent estimate.

An iPhone Nano?

Since Apple scored a success with its stripped-down Nano version of the iPod music player, many have been expecting a similar move with the iPhone.
Apple may meet their expectations with a phone based on the slim iPod Nano itself.

Combing through filings with the U.S. Patent and Trademark Office, JP Morgan analyst Kevin Chen found a new product suspiciously tantamount to an iPhone Nano in a patent that was filed by Apple on Nov. 1, but only published by the patent office July 5.

“Invention pertains to a user interface for controlling an electronic device, particularly a multifunctional electronic device that is capable of operating in multiple modes as for example a phone mode for communications and a media player mode for playing audio files, video files, and the like,” Chen wrote in a report released Monday, quoting from the filing verbatim.

That patent also suggests the use of a scroll wheel, similar to the iPod.

After sounding out suppliers, Chen concluded that Apple is planning an iPhone Nano, a cheaper version of the iPhone with limited functionality, and lacking the iPhone's distinctive capacitive touch screen. The launch date: the fourth quarter of this year, Chen believes.

At the end of the day, Chen believes this strategy is most likely to evolve into a wholesale conversion of the iPod Nano into a cheap iPhone to avoid cannibalizing the two low-priced products and boost sales, likely to the range of around 30 million and 40 million units, assuming no bottleneck supply problem.

That sale volume estimate would be slightly lower than the 50 million units of iPods that Apple sells in a year and the number of the wildly popular Razr phones that Motorola sold in 2006.

Its Taiwanese metal casings supplier for the iPod Nano, Catcher, is positioned to become its major supplier for casings for the iPhone Nano, he said.

It could translate into a revenue stream of between 6 billion New Taiwan dollars ($183 million) and 8 billion New Taiwan dollars ($245 million) for Catcher, up from projected yearly revenue in fiscal 2007 of between 18 billion New Taiwan dollars ($550 million) and 19 billion New Taiwan dollars ($581 million).

Catcher shares soared on the news in morning trading Monday in Taipei, rising 22 New Taiwan dollars (67 cents), or 6.9%, to 339.5 New Taiwan dollars ($10.40). Catcher shares have risen steadily since last August from 275 New Taiwan dollars amid a concerted rally of Taiwanese iPod suppliers.

iPhone's casings are mainly supplied by Foxconn Technology, the Hong Kong-listed unit of Taiwanese electronics conglomerate Hong Hai Precision Industry.

An iPhone Nano most likely would retail for around $300 and could go lower — between $99 and $149 — if cellular service providers were to subsidize it, Chen wrote. Mobile phone services providers often discount phones as a lure to lock subscribers into long-term contracts.

That would create a clear price segmentation with the current iPhone, whose high-storage 8-gigabyte model sells for $599. The 4-gig model goes for $499. (See: “ Will iPhone’s Momentum Last?”)

The high price of the iPhone could prevent it from reaching a mass market, but a cheaper Nano model would help bridge that gap.

Apple refused to accept subsidies on the iPhone from its cellular partner AT&T in order to maintain flexibility in retail pricing and avoid cannibalizing iPod sales. In return, AT&T has been rewarded with an unusually lengthy exclusive contract on the phone of five years.

iPhone purchasers who had hoped to resell them fare poorly

David Flashner thought he had it wired: Buy two iPhones last Friday when they first went on sale, keep one and sell the other at a profit so big it would pay for most of the first one.

Flashner wasted no time. He began advertising the extra phone while still in line at an Apple store in Burlingame, Calif., south of San Francisco. During his 21-hour wait, he posted half a dozen ads to website Craigslist .com — with prices ranging from $800 to $1,200 — and waited for the calls to come in.

But no calls came because consumers expect that stores will soon have phones in stock. He continued to advertise the extra phone through the weekend, and ended up with just one call, which went nowhere. On Wednesday, he returned the phone.

Flashner, 25, who manages an audio-visual equipment rental company, is not the only would-be iPhone reseller whose plan failed to follow the script. "I haven't heard of a single person who sold one," he said.

Across the nation, people looking to make a quick and easy profit bought one, two or as many phones as they could by recruiting friends to stand in line with them. Many of them were the first to get in line, camping overnight outside the stores. But now they are finding that the iPhone is much more like a Harry Potter book than a hard-to-find Wii video game machine: a great thing to be one of the first to own, but not high in resale value because supply is not constrained.

Last Friday, just after the first iPhones were sold, thousands of listings showed up on eBay and Craigslist, with prices of $1,000 for the 8-gigabyte phone, a $400 markup. Some bold sellers were asking $2,000. But as it became clear that supply was meeting demand, they found themselves stuck. Few of the phones have sold for more than $700, which after sales tax, is not a remarkable profit margin.

Corey Spring, a columnist at newsvine.com who analyzed eBay auctions, estimated that a significant number of sellers "were only making their money back, even closing at a loss." Most Apple stores in the United States have no phones available, but the most-determined customers seem to have been able to buy phones. Few people seem willing to pay even $100 over the retail price.

Some frustrated resellers say they will keep trying, then return their extra phones within the 14-day return period.

Demand for the phone was remarkably strong in the first days. Analysts estimate that Apple and AT&T stores have sold around 500,000 phones so far. One analyst ventured a guess as high as 700,000. But Apple appears to have anticipated demand and contracted with manufacturers in Asia to build far more. Apple has said it expects to sell as many as 10 million phones by the end of 2008.

Over the last few weeks, Apple stirred a great deal of speculation about inventory levels by shrouding them in secrecy. As a result, resellers decided to take a chance. The company declined to comment on the rush to resell the phones or on the status of iPhone inventories.

This Just In

Hewlett-Packard is in discussions with content providers to bring user-generated content, movie previews and TV shows to its line of Internet-connected MediaSmart LCD TV sets.

HP already has a deal with CinemaNow to offer MediaSmart users the ability to browse and purchase or rent more than 4,000 titles directly from the TV set. Videos are downloaded to a consumer’s PC, then streamed wirelessly to the TV.

Alex Thatcher, senior product marketing manager for HP’s Digital TV Solutions group, said the company expects to announce additional Internet-video content partners next month. “It should be a pretty extensive library of content,” he said.

HP launched the MediaSmart line last year with a 37-inch TV, which can play music and video and display photos stored on personal computers.

The Internet features of HP’s MediaSmart sets are similar to other products that have recently hit the market, including Apple TV set-tops. Apple Inc. last month announced a deal with Google’s YouTube to provide access to the site’s user-generated content on Apple TV.

Thatcher acknowledged that Apple TV has captured the lion’s share of buzz.

“There’s a little bit of frustration here,” he said. “It’s hard to beat the hype machine across the street.” HP’s TV group is based here, which is also home to Apple headquarters.

HP’s new Internet-content partnerships will be part of the debut of 42- and 47-inch MediaSmart models, expected to be available by the end of August in retail channels including Best Buy stores. The TVs, with list prices of $2,199 and $2,799, respectively, support 1080p high-definition programming and include 802.11n wireless network connectivity.

Vodafone put off by Apple's demand for big iPhone slice

Apple is understood to be demanding that its European mobile phone partners hand over a significant proportion of revenues generated by the iPhone and restrict the content that users can access.

The portion of network revenues demanded by Apple is believed to have been behind Vodafone's decision not to sign up as the exclusive partner for the iPhone in the UK. That contract is understood to have been won by O2 although the mobile phone operator stressed that no deal has yet been signed.Shares in Vodafone were slightly lower yesterday as investors bemoaned the fact that it will not have the device - which is flying off the shelves in the US after launching last week. The iPhone is expected to launch in November in the UK through O2, in France with Orange and in Germany with T-Mobile.

The expected success of O2 in getting the iPhone is a boost for Carphone Warehouse. It fell out with Vodafone last year and no longer connects customers to contracts with the operator.

The technology market analysis group iSuppli estimates that Apple is making a profit of almost $334 (£167) on each 8GB iPhone, which retails at $499, not including the cost of distribution and development. The firm estimates that up to 4.5m iPhones will be sold this year and more than 30m by 2011. Apple's own online iPhone availability checker showed all its US stores had sold out yesterday.

But Apple is not just making money through sales. It is demanding a slice of the revenues the wireless networks make from usage of the device. It is also restricting content that can be accessed.

In the past, mobile operators have cajoled handset manufacturers into putting buttons on their phones that access the network's own internet portal, where users can download games or buy music. With the iPhone, however, all the power rests with Apple.

Femtocell technology to help phones converge

Hands up who's ever heard of a femtocell? No - didn't think so. That's likely to change - at least in Japan
- if Softbank 's new trial of the technology for extending phone coverage succeeds.

The operator of the third-largest phone network in Japan is testing femtocells in several areas of the country on several fronts. The main task for the router-sized boxes will be to tie fixed lines more closely to subscribers' mobile phones.
One phone to rule them all

This fixed-mobile convergence (FMC) will see seamless switching between normal landlines and mobile networks on a single handset. The concept isn't new, but the use of femtocells allows Softbank to bring internet connections, and thus VoIP, into the mix too, thus finding the cheapest route for each call.Advertisement

More significantly, FMC effectively eliminates the mobile phone coverage blackspots common to many buildings, thus ensuring we can all be reached all the time.

Russian automobile market grows 50% in money terms in H1

The Russian automobile market grew 51% in money terms and 28% in volume in the first half of 2007 compared with the same period last year.

The Russian automobile market stood at $20.6 billion in the first half of 20076 and there were sales of 1.165 million vehicles, Stanley Root, a partner in PricewaterhouseCoopers, told journalists on Thursday.

However, sales of Russian-made automobiles dropped 23% to 300,000 vehicles and 8% in money terms to $2.4 billion.

In commentating on the situation on the Russian automobile market, Root said that the Russian government is actively working to protect the Russian automotive manufacturing business, however he thinks that the production of old cars will drop. The question is how fast new models will replace old ones, he said.

New foreign cars accounted for 78% of all sales in the first half of 2007 compared to 71% at the end of 2006. rm

O2 'to get iPhone contract in UK'

Mobile phone operator O2 is reported to have won the sought-after deal to sell Apple's iPhone in the UK.
Press reports said that O2 is set to sign an exclusive contract shortly and should have the new phones on sale in time for Christmas.

A spokesman for O2, which is owned by Spain's Telefonica, declined to comment on the reports.

More than 500,000 iPhones were sold in the first weekend in the US by AT&T, which has exclusive rights there.

Vodafone had previously been tipped as the likely winner of the contract.

The agreement with O2 is reported to include Apple receiving a continuing share of the revenue generated for the network operator.

The handsets are expected to be sold for about £300 and O2 will be hoping that the lure of the fashionable phone is enough to win customers from rival networks.

iPhone price tag double that of parts

Apple sells the iPhone at more than double production costs, suggesting the new handset may be more profitable than rivals from Motorola and Nokia Oyj.


The $599 model has component and manufacturing costs of $265.83, which translates into margins of more than 55 percent, according to iSuppli Corp. The research firm tore open an iPhone to identify its components.

While the 55 percent figure is higher than the gross margin of some of Apple's rivals, that alone doesn't determine how profitable a product is, said Bill Choi, an analyst with Jefferies & Co. in New York.

Other costs are marketing and research and development, and Apple still needs to sell a "critical mass" of iPhones to cover development costs, he said.

iPhone sales put shine on Apple share price

Apple's stock soared to a record high today amid analyst reports that sales of highly profitable iPhones easily rocketed passed $US300 million ($A351.68 million) after its US launch.

Apple shares were up nearly five per cent, rising to $US127.17 when the New York Stock Exchange closed. The price slipped a fraction to $US126.82 in after-hours trading.

Investors were evidently reacting to reports from analysts that from 310,000 to 700,000 iPhones have been snapped up since the devices began selling on Friday and that the profit margin on the devices is estimated at 55 per cent.

Apple and US telecom giant AT&T, the exclusive iPhone service provider, did not disclose sales figures "for competition reasons".

"In its first weekend we sold more iPhones than in the first month of any other wireless phone AT&T ever offered," AT&T spokesman Mark Siegel told AFP. "That's how good it's been. We are simply not releasing figures."

Nearly all of AT&T's 1,800 stores were sold out of iPhones by yesterday and new stocks were en route, according to Siegel.

The touch-screen devices, which combine internet, telephone and iPod-like music and video play, are sold at Apple and AT&T stores and at Apple's online store.

An eight-gigabyte iPhone is priced at $US599 ($A702.19) and a four-gigabyte version is $US499 ($A584.96).

Among the hordes of people that raced to get iPhones are those that tore them apart to figure out which companies supply parts and how much the devices cost to make.

Research firm iSuppli reported today that it dismantled an eight-gigabyte iPhone and determined Apple paid approximately $US266 ($A311.82) for the parts.

The iSuppli analysis pegs Apple's iPhone profit margin at 55 per cent, even more than the 40 to 50 per cent it makes off each iPod MP3 player.

Rising crude drives Europe rally

European shares rallied in early trade on Tuesday after a strong performance on Wall Street overnight, while rising crude oil prices boosted shares of energy companies such as BP and Total.

At 0711 GMT The pan-European FTSEurofirst 300 index rose 0.7 percent to 1,610.41 points, mirroring sharp gains on the U.S. stock market on Monday.

Brent crude futures held just shy of ten-month highs above $72 a barrel ahead of a possible drop in the U.S. crude stockpile, boosting BP and Total shares by 0.8 percent.

"The oil price is triggering ... concern as we are now well above the $70 a barrel level and, granted, could even advance to $74 a barrel and I doubt that can be passed by without being noticed," said Heino Ruland, a strategist at German brokerage Steubing.

The biggest percentage gainer was German industrial group MAN, whose shares shot up 3.4 percent following an upgrade from Goldman Sachs, traders said.

In other European markets, London's FTSE 100 index rose 0.5 percent, while Frankfurt's DAX added 0.9 percent and Paris' CAC 40 gained 0.8 percent.

One of the biggest negative weights on the broader market was German software company SAP, which fell 0.6 percent after admitting "inappropriate downloads" of documents from U.S. rival Oracle by its TomorrowNow unit.

Meanwhile shares in French food group Danone were suspended in early trade ahead of an expected statement.

Danone shares rose as much as 3.1 percent on Monday as a source familiar with the matter and media reports said the company was looking to sell its biscuit unit.

Hackers will soon be able to unlock the iPhone

Efforts to unlock Apple’s iPhone continued on Monday, with hackers claiming “very significant progress.”

The locked iPhone only works with AT&T’s EDGE network, and cannot be used with cellular service from other providers. Locked phones are generally used to help operators recoup the cost of subsidizing handsets for their customers, but AT&T is not subsidizing the iPhone, which is priced at either $499 or $599, depending on the model. Instead, the phone is locked because AT&T has a five-year agreement with Apple to be the sole iPhone provider in the U.S.

Unlocking the iPhone would be a boon for users locked into a contract with another U.S. carrier, or for users outside the U.S. who want an iPhone. While initial signs indicate an unlocked iPhone is possible, hackers must first overcome several challenges. One of those involves circumventing the authentication process in iTunes that both lets users register for an AT&T service plan and turn on the phone’s features, including its camera and music player.

By Monday evening, U.S. time, hackers had made headway towards circumventing the activation process. But the phone remained locked at the time of writing.

“We have been fairly successful in spoofing iTunes activation processes. This should allow us to activate the phone,” poster gj wrote on the iPhone Dev Wiki, one of several Web sites tracking efforts to unlock the phone. “It may in fact also prevent the SIM locking from occurring in the first place … though we haven’t verified this yet.”

These advances allowed hackers to set and read data on the iPhone, including the ability to query whether a phone has been activated. “The rest of our work is legwork really, in understanding how certain functions operate with the rest of the phone,” the site said, adding hackers are close to the ability to browse system files on the iPhone, a key step towards unlocking the handset.

Once the activation problem has been overcome, hackers will be faced with other questions. For instance, does iTunes have the ability to recognize a phone that was not activated for use with the AT&T network? If so, how will iTunes react?

After these questions are resolved, hackers can focus on unlocking the handset itself. That task is made easier by the iPhone’s use of a removable SIM (Subscriber Identity Module), a smart card that contains a user’s phone number as well as storage space for contacts and messages, instead of one that was hardwired into the phone. The use of a removable SIM card means the iPhone is locked using its firmware, which can likely be cracked.

While hackers race ahead to unlock the iPhone as quickly as possible, iPhone Dev Wiki poster gj criticized those hackers competing against each other to unlock the phone, saying the lack of cooperation had slowed progress.

AT&T says iPhone activation improving

While blogs continue to simmer with complaints from people who waited months to buy an iPhone and now are experiencing problems activating it, AT&T Inc. said Sunday that the situation has improved.

'We are working on any issues on an individual basis with customers who were impacted,' said Michael Coe, a spokesman for AT&T, the Apple Inc. device's exclusive carrier. Nearly all customers have been able to activate their phones within five to eight minutes, he said.

Without activation, not even the phone's alarm clock works, leading some unhappy customers to joke that their inactive iPhones are little more than expensive paperweights.

AT&T attributed the problems to overloaded servers as large number of customers tried to activate their phones over the weekend. After being hit with the initial onslaught, AT&T made technical adjustments to its activation system so that new users wouldn't face the same delays, Coe said.

Customers with corporate accounts might also experience delays because AT&T needs authorization from the telecommunications manager at their company to switch them to an individual account, he said.

Timothy Johnson, 36, of Collegeville, Pa., said his phone was activated Sunday afternoon, about two days after he bought it.

'The experience of the activation is unacceptable,' Johnson said. 'It all just reeks of ill-preparedness to me.'
Johnson said he was happy with the iPhone and credited Apple for acknowledging the problem. But he expressed concerned about the type of service he would get from AT&T in the future.

Rob Enderle, an industry analyst with The Enderle Group, said the activation problems probably won't hurt iPhone sales.

'This kind of thing is not unusual when you have this number of people trying to buy something all at once,' Enderle said.

Depending on how the companies handle customer's complaints, it could in fact help, he said. If customers feel the company has treated them well, they are more likely to buy and recommend its products in the future.

'It doesn't matter whether your product breaks or not,' Enderle said. 'It matters how well you treat your customers.'
The iPhone, which also serves as an iPod media player and a wireless Web device, went on sale Friday evening after months of anticipation. Thousands of people lined up in front of Apple and AT&T stores across the country to be among the first to get one.

Apple has been updating its Web site nightly to report which of its stores have iPhones in stock. Nearly all AT&T stores have sold out, Coe said.

Apple would not provide details about iPhone sales figures or customer activation problems, but a spokeswoman said the company was working hard to resolve any issues.

'There are a small percentage of iPhone customers who have had a less than perfect activation experience,' said Apple spokeswoman Natalie Kerris.

Customers can activate the phones by logging on to Apple's iTunes software from their computers. Although many customers said they experienced no delays, others received a message saying activation 'will take some additional time.'
Many buyers said their troubles began when they tried to switch from their current cell phone provider to AT&T. The activation problem has affected both existing AT&T wireless customers and those signing up from another cell phone carrier, Coe said.

As of Sunday afternoon, eBay Inc. (NASDAQ:EBAY) said more than 2,700 iPhones had been sold on the online auction site at an average price of $740.18. The iPhone retails for $499 for the 4-gigabyte version and $599 for the 8-gigabyte model.

Money, race and more from politics blog

Clinton is up, Pelosi is down — and Thompson is still testing the waters for a possible presidential run.

Money chart

The figures soon will be flying fast and furious in the presidential campaign. Shortly after the end of the second-quarter fundraising period Saturday, some candidates will proudly post their take and crow about their momentum.

Others will more quietly file their paperwork with the Federal Election Commission and let the numbers speak for themselves when the reports are officially released in mid-July.

For those keeping score at home (and for those eager to start), here's a reminder of how various candidates fared during the first quarter (Jan. 1-March 31).
What they reported raising from others in that period, rounded off, in millions:



Democrats

Clinton...$26.1

Obama...$25.7

Edwards...$14.0

Richardson...$6.2

Dodd...$4.0

Biden...$2.1

Kucinich...$ 0.3



Republicans

Romney...$21.0

Giuliani...$14.8

McCain...$13.0

Brownback...$1.3

Use caution when using Roth money for emergencies

Among the multitude of ideas that readers have submitted for building an emergency fund, here's an intriguing one: Use a portion of your Roth IRA. Although I have misgivings about it, the concept is worth a look.
"My wife and I have an emergency fund equal to three-fifths my annual salary," said Robert Jones, a reader from Pennsylvania. "We keep it in a bond mutual fund as part of our regular brokerage account. We also have Roth IRAs with the same broker.
"Might we be better off keeping that emergency fund as part of our Roth IRAs? The contributions would still be available, without penalty, for any purpose, and the interest would grow tax-free. We can keep it in the same bond fund or a similarly conservative investment within the Roth accounts."
For those who need a refresher, a Roth IRA is a type of individual retirement account that, unlike a traditional IRA, does not offer a tax deduction on contributions. But all withdrawals can be tax-free once you are 59 1/2 and have had a Roth IRA open at least five years.
Another advantage is that, since you've already paid taxes on the money you contribute, you can always withdraw your direct contributions, at any time and for any reason, without taxes or penalties (although this has been the case since Roth IRAs came into being in 1998, this fact is still not well-known).

For example, if you have a Roth IRA worth Advertisement
$25,000, and $18,000 of it is direct contributions and $7,000 is
earnings, you can always take out the $18,000 tax and penalty-free. (If a bank imposes a penalty for the early redemption of a certificate of deposit in a Roth IRA, that's another matter unrelated to the tax laws.)
It is possible, therefore, to use a Roth IRA as an emergency fund. If you need the money, it is there for you. If you don't need it, you can leave it alone to grow tax-free for retirement.
But a few caveats are in order: A Roth IRA is intended to be an account to save for retirement. Using it for any other purpose may leave you short of funds after you quit work. If you do rely on a Roth IRA for emergencies, you must have the discipline to avoid raiding it for nonemergency expenditures.
Also, as retirement savings accounts, Roth IRAs are ideal vehicles for long-term growth-oriented investments such as stocks and stock-mutual funds. Emergency funds are best kept in stable, short-term investments that can be converted to cash quickly without loss of principal (although low-volatility bond funds can be used, I prefer money market funds that don't fluctuate in price).
Therefore, before using part of your Roth IRA as an emergency fund, you need to consider whether such use fits within your overall asset allocation (in other words, how you want your money divided among different asset classes, such as stocks, bonds and cash, based on your goals and risk tolerance).
Say you want a portfolio of 60 percent stocks, 35 percent bonds and 5 percent cash. If the 5 percent cash allocation fits into your Roth IRA and gives you enough money to handle emergencies, then the idea can work. In this instance, you may leave 5 percent of your overall portfolio in a money-market fund within a Roth IRA. Top-yielding money funds are paying 5 percent or more today, and you can leave everything to grow tax-free inside the IRA if you don't need the money for emergencies.