Teen inaugural performer shot dead in Chicago

CHICAGO A teenage girl who attended presidential inauguration activities in Washington earlier this month was shot to death at a Chicago park.




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Chicago mother takes stand against gun violence






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Chicago mayor puts pressure on gunmakers



Police say 15-year-old Hadiya Pendleton was shot in the back Tuesday and later died at University of Chicago Comer Children's Hospital. An unidentified boy was shot in the leg and is being treated at the hospital. No arrests have been made.

Hadiya was a majorette with the King College Prep High School band, which performed at several inaugural events. CBS Chicago affiliate WBBM-TV reports she was also an honor student and volleyball player.

Police say Hadiya was one of about 12 teens under a canopy at a park to avoid the rain when a man jumped a fence, ran toward the group and opened fire. The man fled the scene in an auto. Police say the gunman was not aiming at the girl.

Witnesses told WBBM-TV that shootings are rare in the neighborhood.

"We hardly ... have any crime," said Jennifer West, who lives close to where the incident occurred. "There's been a few break-ins over the past two years since we've been here, but nothing that's ever caused alarm."

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Giffords to Senate: 'Americans Are Counting on You'













Former congresswoman Gabrielle Giffords, whose congressional career was ended by a bullet wound to her head, opened a Senate hearing on gun violence today by telling the panel, "Speaking is difficult, but I need to say something important."


In a determined and forceful voice, she told the Senators to be "courageous" because "Americans are counting on you."


Giffords sat alongside her astronaut husband Mark Kelly as she delivered her emotional statement just over a minute long imploring Congress to act on gun policy.


"This is an important conversation for our children, for our communities, for Democrats, and Republicans," the former Arizona congresswoman said. "Speaking is difficult but I need to say something important: Violence is a big problem too many children are dying. Too many children. We must do something. It will be hard, but the time is now. You must act. Be bold, be courageous, Americans are counting on you. Thank you," Giffords said before being helped out of the hearing room.


Giffords was shot by a gunman in her Arizona district two years ago, and was a last-minute addition to the hearing about the nation's gun laws as lawmakers grapple with how to curb gun violence in the wake of the Newtown, Conn., tragedy that left 20 children and seven adults dead late last year.


Today's hearing is a showdown on guns, featuring two powerful but conflicting forces in the gun control movement. Giffords' husband also testified, as did Wayne LaPierre, the fiery executive vice president and CEO of the National Rifle Association.








Mark Kelly on Gun Control: 'This Time Must Be Different' Watch Video











Mark Kelly Makes Case Against High-Capacity Gun Magazines Watch Video





Kelly's opening remarks before the Senate Judiciary Committee today emphasized that he and his wife are both gun owners and he has said that he recently bought a new hunting rifle. But he said they are also dedicated to minimizing gun violence because of their personal tragedy.


"We are simply two reasonable Americans who realize we have a problem with gun violence, and we need Congress to act," Kelly said. "Our rights are paramount, but our responsibilities are serious and as a nation we are not taking responsibility for the gun rights our founding fathers conferred upon us."


Kelly said that a top priority should be to close the loophole that says people who buy weapons at gun shows are not required to undergo background checks.


"Closing the gun show loophole and requiring private sellers to require a background check for they transfer a gun…I can't think of something that would make our country safer than doing just that," he told the panel.


Giffords and Kelly recently launched Americans for Responsible Solutions, an organization promoting the implementation of universal background checks and limits on high capacity magazines.


"Overwhelmingly, you told us that universal background checks and limiting access to high capacity magazines were top priorities, and I'll make sure to address each of those ideas in my opening remarks," Kelly wrote in an email to supporters Tuesday. Kelly asked the group's allies to sign a petition calling on Congress to pass legislation on both issues.


LaPierre laid out the NRA's opposition to universal background checks and urged legislators not to "blame" legal gun owners by enacting new gun control laws.


"Law-abiding gun owners will not accept blame for the acts of violence of deranged criminals. Nor do we believe the government should dictate what we can lawfully own and use to protect our families," LaPierre said."And when it comes to background checks, let's be honest – background checks will never be 'universal' – because criminals will never submit to them."


"If you want to stop crime, interdict violent criminals incarcerate them and get them off the streets," LaPierre said.


He repeated an NRA proposal to place armed security guards in every school in America, arguing that "it's time to throw an immediate blanket of security around our children."






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Army warns unrest pushing Egypt to the brink


CAIRO, Egypt (Reuters) - Egypt's army chief said political unrest was pushing the state to the brink of collapse - a stark warning from the institution that ran the country until last year as Cairo's first freely elected leader struggles to curb bloody street violence.


Abdel Fattah al-Sisi, a U.S.-trained general appointed by President Mohamed Mursi last year to head the armed forces, added in a statement on Tuesday that one of the primary goals of deploying troops in cities on the Suez Canal was to protect the waterway that is vital for Egypt's economy and world trade.


Sisi's comments, published on an official army Facebook page, followed 52 deaths in the past week of disorder and highlighted the mounting sense of crisis facing Egypt and its Islamist head of state who is striving to fix a teetering economy and needs to prepare Egypt for a parliamentary election in a few months that is meant to cement the new democracy.


Violence largely subsided on Tuesday, although some youths again hurled rocks at police lines in Cairo near Tahrir Square.


It seemed unlikely that Sisi was signaling the army wants to take back the power it held for six decades since the end of the colonial era and through an interim period after the overthrow of former air force chief Hosni Mubarak two years ago.


But it did send a powerful message that Egypt's biggest institution, with a huge economic as well as security role and a recipient of massive direct U.S. subsidies, is worried about the fate of the nation, after five days of turmoil in major cities.


"The continuation of the struggle of the different political forces ... over the management of state affairs could lead to the collapse of the state," said General Sisi, who is also defense minister in the government Mursi appointed.


He said the economic, political and social challenges facing the country represented "a real threat to the security of Egypt and the cohesiveness of the Egyptian state" and the army would remain "the solid and cohesive block" on which the state rests.


Sisi was picked by Mursi after the army handed over power to the new president in June once Mursi had sacked Field Marshal Hussein Tantawi, in charge of Egypt during the transition and who had also been Mubarak's defense minister for 20 years.


The instability has provoked unease in Western capitals, where officials worry about the direction of a powerful regional player that has a peace deal with Israel. The United States condemned the bloodshed and called on Egyptian leaders to make clear violence was not acceptable.


DEEPLY POLARISED


The 58-year-old previously headed military intelligence and studied at the U.S. Army War College. Diplomats say he is well known to the United States, which donates $1.3 billion in military aid each year, helping reassure Washington that the last year's changes in the top brass would not upset ties.


One of Sisi's closest and longest serving associates, General Mohamed el-Assar, an assistant defense minister, is now in charge of the military's relations with the United States.


Almost seven months after Mursi took office, Egyptian politics have become even more deeply polarized.


Opponents spurned a call by Mursi for talks on Monday to try to end the violence. Instead, protesters have rallied in Cairo and Alexandria, and in the three Suez Canal cities - Port Said, Ismailia and Suez - where Mursi imposed emergency rule.


On Tuesday, thousands were again on the streets of Port Said to mourn the deaths of two people in the latest clashes there, taking the total toll in Mediterranean port alone to 42 people. Most were killed by gunshots in a city where weapons are rife.


Mohamed Ezz, a Port Said resident speaking by telephone, heard heavy gunfire through the night. "Gunshots damaged the balcony of my flat, so I went to stay with my brother," he said.


Residents in the three canal cities had taken to the streets in protest at a nightly curfew now in place there. The president's spokesman said on Tuesday that the 30-day state of emergency could be shortened, depending on circumstances.


In Cairo on Tuesday afternoon, police again fired teargas at stone-throwing youths in a street near Tahrir Square, the center of the 2011 uprising. But the clashes were less intense than previous days and traffic was able to cross the area. Street cleaners swept up the remains of burnt tires and other debris.


The police have been facing "unprecedented attacks accompanied by the appearance of groups that pursue violence and whose members possess different types of weapons", the state news agency reported, quoting the Interior Ministry spokesman.


Street flare-ups are a common occurrence in divided Egypt, frustrating many people desperate for order and economic growth.


WARY MILITARY


Although the general's comments were notably blunt, Egypt's military has voiced similar concerns in the past, pledging to protect the nation. But it has refused to be drawn back into a direct political role after its reputation as a neutral party took a pounding during the 17 months after Mubarak fell.


"Egyptians are really alarmed by what is going on," said Cairo-based analyst Elijah Zarwan, adding that the army was reflecting that broader concern among the wider public.


"But I don't think it should be taken as a sign that the military is on the verge of stepping in and taking back the reins of government," he said.


In December, Sisi offered to host a national dialogue when Mursi and the rivals were again at loggerheads and the streets were aflame. But the invitation was swiftly withdrawn before the meeting went ahead, apparently because the army was wary of becoming embroiled again in Egypt's polarized politics.


Protests initially flared during the second anniversary of the uprising which erupted on January 25, 2011 and toppled Mubarak 18 days later. They were exacerbated in Port Said when residents were angered after a court sentenced to death several people from the city over deadly soccer violence.


Since the 2011 revolt, Islamists who Mubarak spent his 30-year rule suppressing have won two referendums, two parliamentary elections and a presidential vote.


But that legitimacy has been challenged by an opposition that accuses Mursi of imposing a new form of authoritarianism. Mursi's supporters says protesters want to overthrow Egypt's first democratically elected leader by undemocratic means.


The army has already been deployed in Port Said and Suez and the government agreed a measure to let soldiers arrest civilians as part of the state of emergency. Sisi reiterated that the army's role would be to support the police in restoring order.


Mursi's invitation to rivals to a national dialogue with Islamists on Monday was spurned by the main opposition National Salvation Front coalition, which described it as "cosmetic".


The presidency said a committee would be formed to look at changes to the constitution, but it ruled out changing the government before the parliamentary election.


Mursi's pushing through last month of a new constitution which critics see as too Islamic remains a bone of contention.


(Additional reporting by Yasmine Saleh and Omar Fahmy in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Writing by Edmund Blair; Editing by Alastair Macdonald and Peter Millership)



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US consumer confidence down sharply in January






WASHINGTON: US consumer confidence dove sharply for the second straight month in January, the Conference Board said Tuesday, with rising taxes cited as a likely reason for the surge in gloom.

The board's consumer confidence index sank to 58.6 in January from 66.7 in December, far below the 2012 peak of 73.1 in October.

The January level was also below where the index stood in January 2012, as readings on consumer views of the current situation and the outlook both diminished. It was the third consecutive monthly decline in confidence.

"Consumer confidence posted another sharp decline in January, erasing all of the gains made through 2012," said the Conference Board's Lynn Franco.

"Consumers are more pessimistic about the economic outlook and, in particular, their financial situation," she said in a statement.

"The increase in the payroll tax has undoubtedly dampened consumers' spirits and it may take a while for confidence to rebound."

- AFP



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Creepy realistic vampire baby dolls are immortal



Vampire Reborn doll

Awww, what a cutie-patootie!



(Credit:
Bean Shanine)


Thanks to "Twilight," vampires are more popular than ever. It's only natural that people would want their own vampire babies, isn't it? OK, maybe not, but there is a niche market out there for vampire baby dolls. I'm not talking about action figures or stuffed toys, I'm talking about dolls so realistic you'll feel like you've crossed the Uncanny Valley and emerged from the other side.


Artist Bean Shanine runs the Twisted Bean Stalk Nursery, a site devoted to her unholy baby creations. She takes Reborn doll kits and transforms them into monstrosities. Reborns are incredibly realistic, making Shanine's transformations all the more creepy.




The vampire Reborns all have lifelike paint jobs, but their otherworldly origins show in their pointy teeth and red eyes. There's something very unsettling about these dolls. If you get one, you might want to sleep with one eye open.


While Shanine specializes in little bloodsuckers, she has also branched out into other areas, like zombie babies. She even created a set of "Avatar" twins with blue faces and bodies.


Owning your own monster baby doesn't come cheap. Prices vary depending on the size of the Reborn baby, whether it has open eyes, and whether it has rooted hair. Preemies start at $650. If you want to bypass the terrible twos, then a 4- or 5-year-old monster child will cost you at least $1,500. Still, that's cheaper than a real child and you don't have to start a college fund.



Avatar twin babies

Avatar twins!



(Credit:
Bean Shanine)


(Via Obvious Winner)


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Clinton reveals her biggest regret as secretary of state

In a global "town hall" with young people today, Secretary of State Hillary Clinton talked about her legacy -- including the parallels between her tenure as secretary of state and another historical diplomat's -- and her future of helping women in politics.

"I do want to see more women compete for the highest positions in their countries," Clinton said in the "Global Townterview," a Washington event hosted by Australian newscaster Leigh Sales. Several news networks from around the world participated in the town hall via satellite, allowing young people from various countries to ask Clinton questions.

One young person from London asked Clinton whether she would run for president in 2016, providing women around the world with a strong role model.






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Hillary Clinton "not thinking about" 2016 yet



"I am not thinking about anything like that right now," Clinton said. "I am looking forward to finishing up my tenure... and then catching up on about 20 years of sleep deprivation."

She did, however, say, "I will do everything I can to make sure women compete at the highest levels." Women need to participate in politics, she said, if governments want to take full advantage of their citizens' potential.

"Although it is better than it was, having been in and around politics for many years now, there is still a double standard" for women in politics, she said. "That exists from the trivial, like what you wear, to the incredibly serious like women [who] can't vote."

In nations like India, she pointed out, women have won the highest elected offices but in everyday life are still disrespected, as was the young woman brutally raped and murdered there.

"This has been the cause of my life and will continue to be as I leave the secretary of state's office," she said. By limiting the possibilities for women in society, "you are in effect putting breaks on your own development as a nation," Clinton said.




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Hillary Clinton: Benghazi is my biggest regret



After four years as secretary of state, Clinton said her biggest regret was the loss of American lives in Benghazi, Libya. "We have to understand from the very beginning you can't control everything," she said.

Three congressional leaders yesterday sent Clinton a letter asking for her to turn over documents from top State Department officials regarding the Benghazi attack. They point out that investigators on the State Department Accountability Review Board never interviewed her or her top officials about the attack.

Looking back to past secretaries of state, Clinton said the one she most admires and identifies with is William Seward, who served under Abraham Lincoln.

"He was from New York, he was a very successful politician from New York," she said. "He had run against President Lincoln, so there's a little bit of parallel here in the whole 'team of rivals' concept."

She added, "I like his willingness to work with President Lincoln. He made a real difference."

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Palin and Fox Part Ways, but Is She Really Over?













Sarah Palin's break up with Fox News should not have been, well, breaking news, as she had publicly complained in August on Facebook that the network had canceled her appearances at the Republican National Convention. And going back even further, Palin didn't give Fox the scoop in October 2011 when she announced she wasn't going to run for president. Still, the news of the Fox split overtook Twitter and the news cycle by storm.


One thing I've learned in my years covering Palin, which began on Aug. 29, 2008, when Sen. John McCain stunned the country by selecting her as his running mate: Everyone has an opinion on whatever she does, and she can get clicks and coverage like no one else.


The prevailing theory now is that since Palin no longer has a megaphone like Fox News through which she can blast her opinions, her moment is now officially over.


The 'Ends' of Sarah Palin


It might be true, but there have been so many "ends of Sarah Palin" that it's almost too hard to keep track of them all. She was over when she lost the 2008 campaign, she was over when she quit the Alaska governorship, she was over when she decided to do a reality show, she was over when she decided not to run for president, and now again, she's over because her appearances on Fox News are over.












Secret Service Scandal: Fired Agent 'Checked Out' Sarah Palin Watch Video





I, for one, did think Palin would lose her relevancy when she quit the Alaska governorship, and also when she didn't run for president. But in both cases, people who both love her and hate her just couldn't get enough information about her, and she still got an incredible amount of news coverage. Her voice was heard loud and clear, even if it blasted only from her Facebook posts. That's just another example of what she's been able to pull off that others who've come before or after just haven't. Palin's been written off from Day One, but like a boomerang, she just keeps coming back.


Yes, she wasn't really helpful to Mitt Romney's campaign, but she also never really explicitly backed him. And what an odd pair they would have made if she had. In her interview last weekend with Steve Bannon, the executive chairman of Breitbart News who made "The Undefeated," the positive 2011 movie about her, she said, "The problem is that some on the right are now skittish because of the lost 2012 election. They shouldn't be. Conservatism didn't lose. A moderate Republican candidate lost after he was perceived to alienate working-class Reagan Democrats and independent voters." Not a sign that she wants to rethink some of her policy points, or that she will retreat into the shadows.


Another Possible TV Home


I think more likely than her fading away (we all still cover every eyebrow-raising Facebook post of hers) is that she will possibly find an on-air home elsewhere, at somewhere like CNN. She told Breitbart.com that she "encourages others to step out in faith, jump out of the comfort zone, and broaden our reach as believers in American exceptionalism. That means broadening our audience. I'm taking my own advice here as I free up opportunities to share more broadly the message of the beauty of freedom and the imperative of defending our republic and restoring this most exceptional nation. We can't just preach to the choir; the message of liberty and true hope must be understood by a larger audience."


Later in the interview, she added, "I know the country needs more truth-telling in the media, and I'm willing to do that. So, we shall see."






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Violence flares in Egypt after emergency law imposed


CAIRO (Reuters) - A man was shot dead on Monday in a fifth day of violence that has killed 50 Egyptians and prompted the Islamist president to declare a state of emergency in an attempt to end a wave of unrest sweeping the biggest Arab nation.


Emergency rule announced by President Mohamed Mursi on Sunday covers the cities of Port Said, Ismailia and Suez. The army has already been deployed in two of those cities and ministers agreed a measure to let soldiers arrest civilians.


A cabinet source told Reuters any trials would be in civilian courts, but the step is likely to anger protesters who accuse Mursi of using high-handed tactics of the kind they fought against to oust his military predecessor Hosni Mubarak.


Egypt's politics have become deeply polarized since those heady days two years ago, when protesters were making the running in the Arab Spring revolutions that sent shockwaves through the region and Islamists and liberals lined up together.


Although Islamists have won parliamentary and presidential elections, the disparate opposition has since united against Mursi. Late last year he moved to expand his powers and pushed a constitution with a perceived Islamist bias through a referendum. The moves were punctuated by street violence.


Mursi's national dialogue meeting on Monday to help end the crisis was spurned by his main opponents.


They say Mursi hijacked the revolution, listens only to his Islamist allies and broke a promise to be a president for all Egyptians. Islamists say their rivals want to overthrow by undemocratic means Egypt's first freely elected leader.


Thousands of anti-Mursi protesters were out on the streets again in Cairo and elsewhere on Monday, the second anniversary of one of the bloodiest days in the revolution which erupted on January 25, 2011 and ended Mubarak's iron rule 18 days later.


"The people want to bring down the regime," they chanted Alexandria. "Leave means go, and don't say no!" they shouted.


VOLLEYS OF TEARGAS


Propelled to the presidency in a June election by the Muslim Brotherhood, Mursi has lurched through a series of political crises and violent demonstrations, complicating his task of shoring up the economy and of preparing for a parliamentary election to cement the new democracy in a few months.


Instability in Egypt has raised concerns in Western capitals, where officials worry about the direction of a key regional player that has a peace deal with Israel.


In Cairo on Monday, police fired volleys of teargas at stone-throwing protesters near Tahrir Square, cauldron of the anti-Mubarak uprising. A car was torched on a nearby bridge.


A 46-year-old bystander was killed by a gunshot early on Monday, a security source said. It was not clear who fired.


"We want to bring down the regime and end the state that is run by the Muslim Brotherhood," said Ibrahim Eissa, a 26-year-old cook, protecting his face from teargas wafting towards him.


The political unrest has been exacerbated by street violence linked to death penalties imposed on soccer supporters convicted of involvement in stadium rioting in Port Said a year ago.


As part of emergency measures, a daily curfew will be imposed on the three canal cities from 9 p.m. (1900 GMT) to 6 a.m. (0400 GMT). Residents have said they will defy it.


The president announced the measures on television on Sunday: "The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said, angering many of his opponents when he wagged his finger at the camera.


He offered condolences to families of victims. But his invitation to Islamist allies and their opponents to hold a national dialogue was spurned by the main opposition National Salvation Front coalition. Those who accepted were mostly Mursi's supporters or sympathizers.


SENDING A MESSAGE


The Front rejected the offer as "cosmetic and not substantive" and set conditions for any future meeting that have not been met in the past, such as forming a government of national unity. They also demanded that Mursi declare himself responsible for the bloodshed.


"We will send a message to the Egyptian people and the president of the republic about what we think are the essentials for dialogue. If he agrees to them, we are ready for dialogue," opposition politician Mohamed ElBaradei told a news conference.


The opposition Front has distanced itself from the latest flare-ups but said Mursi should have acted far sooner to impose security measures that would have ended the violence.


"Of course we feel the president is missing the real problem on the ground, which is his own policies," Front spokesman Khaled Dawoud said after Mursi made his declaration.


Other activists said Mursi's measures to try to impose control on the turbulent streets could backfire.


"Martial law, state of emergency and army arrests of civilians are not a solution to the crisis," said Ahmed Maher of the April 6 movement that helped galvanize the 2011 uprising. "All this will do is further provoke the youth. The solution has to be a political one that addresses the roots of the problem."


Rights activists said Mursi's declaration was a backward step for Egypt, which was under emergency law for Mubarak's entire 30-year rule. His police used the sweeping arrest provisions to muzzle dissent and round up opponents, including members of the Brotherhood and even Mursi himself.


Heba Morayef of Human Rights Watch in Cairo said the police, still hated by many Egyptians for their heavy-handed tactics under Mubarak, would once again have the right to arrest people "purely because they look suspicious", undermining efforts to create a more efficient and respected police force.


"It is a classic knee-jerk reaction to think the emergency law will help bring security," she said. "It gives so much discretion to the Ministry of Interior that it ends up causing more abuse, which in turn causes more anger."


(Additional reporting by Yasmine Saleh in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Editing by Giles Elgood, Peter Millership and Alastair Macdonald)



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Iran sends monkey into space






TEHRAN: Iran on Monday successfully sent a monkey into orbit, paving the way for a manned space flight, Defence Minister Ahmad Vahidi told state television.

Arabic-language channel Al-Alam and other Iranian news agencies said the monkey returned alive after travelling in a capsule to an altitude of 120 kilometres (75 miles) for a sub-orbital flight.

"This success is the first step towards man conquering the space and it paves the way for other moves," General Vahidi said, but added that the process of putting a human into space would be a lengthy one.

"Today's successful launch follows previous successes we had in launching (space) probes with other living creatures (on board)," he added.

"The monkey which was sent in this launch landed safely and alive and this is a big step for our experts and scientists."

Iranian state television showed still pictures of the capsule and of a monkey being fitted with a vest and then placed in a device similar to a child's car-seat.

A previous attempt in 2011 by the Islamic republic to put a monkey into space failed. No official explanation was ever given.

A defence ministry statement quoted by Iranian media said earlier Iran had "successfully launched a capsule, codenamed Pishgam (Pioneer), containing a monkey and recovered the shipment on the ground intact".

Iran announced in mid-January its intention to launch a monkey into orbit as part of "preparations for sending a man into space," which is scheduled for 2020.

Iran's space programme deeply unsettles Western nations, which fear it could be used to develop ballistic missiles capable of carrying nuclear warheads they suspect are being developed in secret.

The same technology used in space launch rockets can also be used in ballistic missiles.

The Security Council has imposed on Iran an almost total embargo on nuclear and space technologies since 2007.

Tehran has repeatedly denied that its nuclear and scientific programmes mask military ambitions.

Iran's previous satellite launches were met by condemnation from the West who accused Tehran of "provocation."

The Islamic republic has previously sent a rat, turtles and worms into space. It has also successfully launched three satellites -- Omid in February 2009, Rassad in June 2011 and Navid in February 2012.

In mid-May last year, Tehran announced plans to launch an experimental observation satellite Fajr (Dawn) within a week but it did not happen and Iran gave no explanation for the delay.

The Fajr satellite was presented by Iranian officials as "an observation and measurement" satellite weighing 50 kilos (110 pounds), built by Sa-Iran, a company affiliated to the defence ministry.

- AFP/ir



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Apple's Tim Cook seeks the 'mother of all opportunities'



CEO Tim Cook (Credit: Josh Lowensohn/CNET)




In a meeting with employees at Apple's headquarters, CEO Tim Cook reportedly addressed the steep drop in the company's stock price that came after Apple posted $54.5 billion in sales last quarter and $13.1 billion in profit -- both records. As reported by 9to5 Mac, Cook took a shot at the highly lucrative oil industry in his cheerleading efforts. "The only companies that report better quarters pump oil," Cook reportedly said. "I do not know about you all, but I do not want to work for those companies."


Predictably, creating and manufacturing the most beloved technology gadgets is viewed as more personally and professionally fulfilling by Silicon Valley than drilling, refining and distributing the fuels that power the planet. An
iPad is cool and innovative, whereas a gallon of gasoline is a polluting liquid gold one cannot live without.



Apple and ExxonMobile factory workers earning their livings (Credit: Foxconn/ExxonMobile)



Apple and oil giants like ExxonMobile are in a rarified club, generating enormous amounts of revenue and profit. After Apple's recent stock price drop, ExxonMobile replaced Apple as the most valued company, with a market capitalization of about $417 billion compared to Apple's $412 billion.


But as Cook likes to say, following in the footsteps of Steve Jobs, Apple has higher aspirations than just turning silicon, or oil, into profits.


"The most important thing to Apple is to make the best products in the world that enrich customers' lives. That's our high order bit," Cook said during the Jan. 23 Apple Q1 earnings call. "That means that we aren't interested in revenue for revenue's sake. We can put the Apple brand on a lot of things and sell a lot more stuff, but that's not what we're here for. We want to make only the best products."


The question now is whether that make-the-best-products mission will translate into a strong stock performance any time soon. Of course, making Wall Street happy is not only about making the best products. It's also a game of setting expectations and then exceeding them, something Apple had down to science for many years.


That pattern could get a shot in the arm with some new products and updates, says Nomura Security's Stuart Jeffrey. But that's unlikely to happen right away.


"To re-accelerate growth, Apple likely needs to launch new products, yet few seem likely before June," Jeffrey said in a note to investors last week. "iOS 7 could have the greatest impact, yet recent management changes suggest a major advance is unlikely in the near-term. A China Mobile deal could also boost the stock, yet the timing of this remains uncertain...this leaves only a $300 iPhone or a premium iPhone as likely catalysts."



For the near-term Cook appears to be betting that the iPad, which was introduced three years ago, will fuel Apple's growth engine. In last week's earnings call, he described the iPad as the "mother of all opportunities" in reference to taking advantage of the shrinking PC market.


"On iPad in particular, we have the mother of all opportunities here, because the Windows market is much, much larger than the
Mac market is," Cook said. "And I think it is clear that it's already cannibalizing some, and I think there's a tremendous amount of more opportunity there and as you know I've said for two or three years now that I believe the
tablet market will be larger than the PC market at some point and I still believe that. And you can see by the growth in tablets and the pressure on PCs that those lines are beginning to converge."

Cook noted that last quarter Apple fell short on fulfilling demand for the iPad mini, but he expects to fix that problem this quarter. Apple sold 22.86 million iPads last quarter, up from 15.4 million in the same quarter of 2011. The company did not break out the number of iPad minis sold, but it's clear that the smaller iPad is helping to drag Apple's overall iPad margins downward.

Expectations are that Apple will refresh the iPad family in the second half of the year, and sell more than 100 million iPads for the calendar year, driven in part by cannibalizing sales of Macs and Windows PCs. Since the iPad began shipping in April 2010, Apple has sold more than 121 million units.

But Apple is facing increased competition and margin pressure as the smartphone and tablet categories mature. In Singapore and Hong Kong, for example, iPad and iPhone market share have been falling over the last year as Android-based devices pick up momentum, according to StatCounter.

If Apple is to maintain its momentum, Cook and team need to replicate the unique successes of the iPhone and iPad, getting a head start on competitors by spawning new markets. Some speculate that an Apple TV solution will be the next "mother of all opportunities." Perhaps Apple's version of Google Glass, or other kinds of wearable devices will keep Apple at the head of consumer adoption of emerging technologies. Cook invokes the cone of silence on Apple's future breakthroughs.

Regarding Apple TV, Cook said last week, "I have said in the past this is an area of intense interest for us, and it remains that. And I tend to believe that there's a lot we can contribute in this space, and so we continue to pull the string and see where it leads us. But I don't want to be more specific."

Cook can continue to pull the string, but it's uncertain whether he can produce the next big thing, another "mother of all opportunities," needed to maintain Apple's cool factor and superior margins. Ultimately, Cook's success as CEO will be judged on how well he does inventing the future rather than exploiting the past.

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