My GettingLost Blog
What Apple’s Stock Dividend Really Means to the Average Person
Apple CEO Tim Cook

APPLE CEO TIM COOK

Apple CEO Tim Cook announced last week that Apple will initiate a quarterly dividend payment to current shareholders, as well as a buy back of almost $10 billion in stock to help avoid reducing employee equity.

The conference call began with Tim Cook stating that Apple’s current financial condition is better than it ever has been. There were 37 million iPhones sold last quarter and that number is only going to increase with worldwide cellphone user set to grow from 1.6 billion in 2011 to over 2 billion by 2015.  The tablet marketgrowth is going in the same direction as the iPhone, wherein Apple sold 55 million iPads before the third-generation iPad was released, and it’s estimated that there will be 320 million tablets by 2016. Tim Cook also commented that the Mac just had its 23rd consecutive quarter of growth.  There is little question that right now, Apple is doing extremely well.

Due to Apple’s success over the last several years, the company has a cash balance of over $100 billion. “After a lot of analysis, thinking and listening to the input we were getting from our shareholders,” Tim Cook and Apple have decided to pay investors a quarterly dividend of $2.65 a share and begin a stock repurchase plan to prevent dilution of employee equity.

As to the dividend, Apple estimates this will cost $10 billion per year for the next three years. The dividend will be officially declared in July. The stock repurchase plan will begin on September 30 and is expected to cost Apple about $10 billion by 2013.  In total, Apple expects to spend approximately $45 billion.  “Even with these investments, we have a huge warchest, and plenty of cash to run our business,” said Tim Cook.  For more information about the conference call, check out Apple’s pre-conference call press release below.

There is no doubt that $45 billion is a staggering number and that almost every company in the world would love to have this problem, but let’s look at what the number really mean to an average Joe like you and I.

One of the reason Apple cited as to the quarterly dividend was to “generate income” for its investors and to attract new investors who require a dividend.  Now, this is the part that everyone should pay attention to: to accomplish this “goal,” Apple is paying a dividend of $2.65 per quarter share.  Yes, that is right, $2.65 per quarter share.

How does this translate to everyday real numbers?  Let me explain.  Let’s say that you have a job wherein you work 8 hours a day, 22 days a month, at $10 an hour.  That would be $1,760 a month before taxes.  Multiple that number times three to arrive at $5,280 quarterly before taxes.  Now, let’s say that you wanted to quit your job and just live off Apple’s quarterly dividend.  How much stock would you need to own to make $5,280 quarterly?  With a dividend of $2.65 per quarterly share, you would need 1,993 shares.  Today, Apple closed at $601.10.  So, 1,993 shares would cost you $1,197,992.30.  That is right, $1.2 million.  I don’t about you, but I don’t have $1.2 million just lying around.  And if I did, I am pretty sure that I would not invest it in something with a return that is barely above someone making minimum wage.

Yes, I realize and understand that Apple shareholders and potential investors are not going to be living off the dividend.  I illustrate the above example to show just how ludicrous and ridiculous Apple’s statement is that part of the reason they are doing a dividend is to generate income for it’s investors and to attract new investors who require a dividend. Let’s call it what it is: Apple is not looking for average Joe investors; Apple is looking for investors who can drop millions of dollars without thinking twice about it. Apple is an extremely rich company that is looking for extremely rich investors. What is the old saying: it takes millions to make billions.  As to their stock, Apple is completely and totally out of touch with the average investor.  Don’t get me wrong, Apple has no problem taking your money.  The only question is how much can you afford at $600 a pop?  For me, I only have one question for you:  Do you want fries with that?

Press Release:

CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced plans to initiate a dividend and share repurchase program commencing later this year.

“We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future”

Subject to declaration by the Board of Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.

Additionally, the Company’s Board of Directors has authorized a $10 billion share repurchase program commencing in the Company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

“We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future,” said Tim Cook, Apple’s CEO. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”

“Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs,” said Peter Oppenheimer, Apple’s CFO. “We are extremely confident in our future and see tremendous opportunities ahead.”

Apple will provide live streaming of a conference call to discuss its plans beginning at 6:00 a.m. PDT on Monday, March 19, 2012 at www.apple.com/quicktime/qtv/call31912. The Company will not be providing an update on the current quarter nor will any topics be discussed other than cash. This webcast will also be available for replay for approximately two weeks thereafter.

This press release contains forward-looking statements including without limitation those regarding future business outlook and plans for dividends and share repurchases. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 24, 2011 and its Form 10-Q for the fiscal quarter ended December 31, 2011. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

Apple May Replace the 30-Pin Dock Connector

iPhone Bottom

If there has been one thing that has been consistent with iDevices over the last several years, it has been the 30-pin dock connector.   According to iMore, the future of the 30-pin may be in jeopardy.  Out of all the rumors floating around about the next generation iDevice, this one actually makes the most sense.  What is one of the biggest complaints of smartphones?  Battery life.  What is a possible solution?  A bigger battery.  The only problem is that there is not enough room.  For Apple, there is a simple solution.  Make room with a smaller connector. That means saying goodbye to the 30-pin.  iMore believes that the most probable replacement will be a “micro-dock.” Thunderbolt is not a contender as it does not use the PCI architecture and the micro-USB is just not fast enough for Apple.   That basically leaves some form of a micro-dock. It is doubtful that we will see any changes with the iPad 3, so I guess we will have to wait until the iPhone 5 to find out if there is any truth to this rumor.

Apple Files A New Lawsuit Against Samsung Over Autocorrect Patent

iPhone 4S

Another week, another lawsuit.  Apple has filed a new lawsuit against their archrival Samsung in San Jose, California. In general terms, the lawsuit covers two patents: spelling and autocorrect on Apple’s iOS devices and “universal interface for retrieval of information in a computer system.” Since the lawsuit was filed under seal, very little has been revealed as to what Apple is alleging other than the case is connected to the prior lawsuit filed by Apple last year. Of course, what has become standard operating procedure for Apple, the lawsuit requests a preliminary injunction.  Until the seal is lifted, it is unknown which Samsung product (or products) Apple is trying to ban this time.

Motorola Offers a Settlement Proposal to Apple

Motorola

After Apple managed to get Motorola’s “permanent injunction” suspended, a new and interesting twist has occurred in the patent dispute between Apple and Motorola. Florian Mueller of FOSS Patents is reporting that Motorola has offered to end the patent disagreement and license its wireless patents to Apple in exchange for 2.25 percent of Apple’s sales. It is being assumed that the 2.25 percent that Motorola is asking for is from the sales of devices that contain a 3G antenna. Folks, that is an extremely large number. Let me provide you with a quick breakdown: Approximate revenue from iPhone sales since 2007 – $93 billion; Motorola’s cut – $2.1 billion.  That doesn’t include iPad sales, which is also part of the demand.  Mueller finds the 2.25 percent shakedown “excessive.” In an effort to prove that Motorola’s settlement demand is a tad bit excessive, Apple has filed motions to obtain information from other smartphone vendors – Nokia, HTC, LG, and Sony Ericsson – to find out how much they are paying in royalty fees to Motorola. If it turns out that it is considerably less than what Motorola is demanding from Apple, you can pretty much guess that the judge is not going to be happy.

German Court Issues an Injunction Against Apple; Appeals Court Quickly Suspends the Injunction

Motorola

German courts have been known to provide quick and swift justice, but this is ridiculous.  In their patent battles with Motorola, Apple took a huge hit when a German court issued Friday, what was thought to be permanent, an injunction banning the sales of the iPhone 4, iPhone 3GS, iPhone 3G and iPad 2 Wi-Fi + 3G, upholding a ruling from December.  As a result of the injunction, Apple suspended all online sales and removed all iOS devices from its German website. The ban is from Motorola’s claim that Apple’s iOS devices with embedded 3G connectivity infringed upon one of their patents related to UMTS technology.  Here is where the fun starts. Apple immediately filed an appeal and a German Appeals Court ruled in Apple’s favor and issued a temporary suspension of the injunction. “All iPad and iPhone models will be back on sale through Apple’s online store in Germany shortly” an Apple spokesperson told SlashGear. “Apple appealed this ruling because Motorola repeatedly refuses to license this patent to Apple on reasonable terms, despite having declared it an industry standard patent seven years ago.” You gotta love the German judicial system.

Carrier iQ is on the iPhone, But It’s Easy to Remove

 Approximately one week ago, we posted an article wherein we questioned Andrew Coward, Marketing Vice President of Carrier iQ, regarding its rootkit and the potential privacy implications due to it logging everything you do on your smartphone. A day later, we broke the news about Carrier iQ’s withdrawal of its cease-and-desist order on Trevor Eckhart.  Today, everywhere you look, there are articles about Carrier iQ’s potential problems and/or what Trevor Eckart has discovered in Carrier iQ’s rootkit that is embedded on numerous Android, Symbian, BlackBerry, and WebOS smartphones.   At first glance, it did not appear that iPhone devices were infected with the rootkit.  After a much closer inspection, Cult of Mac is reporting that Carrier iQ’s rootkit has been installed on iPhones.  Unlike Android and BlackBerry phones, there is a simple fix for iPhone owners: install iOS 5 and turn off “Diagnostics and Usage.” That is it!

 

If you decide not to upgrade to iOS 5 or not to disable the rootkit, it appears that only a limited amount of information is being stored and transmitted, which does not include personal information.  The data being collected appears to be only information needed for carriers and Apple to diagnose problems with the device.  In regards to rootkits on iDevices, Apple released the following statement:

“We stopped supporting Carrier IQ with iOS 5 in most of our products and will remove it completely in a future software update. With any diagnostic data sent to Apple, customers must actively opt-in to share this information, and if they do, the data is sent in an anonymous and encrypted form and does not include any personal information. We never recorded keystrokes, messages or any other personal information for diagnostic data and have no plans to ever do so.”

On Android and other smartphones, the rootkit appears to be logging everything you do on the device and it is impossible to turn it off with out root.  With the media onslaught that Carrier iQ is currently enduring, it is going to be interesting to see how they respond to Senator Al Franken’s inquiries.

Apple to Finally Produce LTE/4G iOS Devices?

With another iDevice on the horizon, it was only a matter of time for the rumor mill to start up on Apple and LTE/4G.  According to Macotakara, the newest rumor is that Japanese carrier NTT DoCoMo is allegedly ready to release a 4G-equipped iPad in the summer of 2012 and a LTE-equipped iPhone in the fall of 2012.  They further report that executives from NTT DoCoMo were in the U.S. and met with Tim Cook.  In a report from The Wall Street Journal (registration required), Apple and NTT DoCoMo have been unable to reach an agreement, mainly due to NTT DoCoMo wanting to install its own pre-loaded apps on the iPhone.  It is very doubtful that Apple will cave on this issue.  What is not in doubt is that Apple will eventually produce LTE/4G iDevices.  But then again, the iPhone 4S seems to be doing very well among the sea of 4G devices.

Take Windows Phone 7 for a Test Drive

Windows Phone 7 Emulator

 Have you ever been curious about Windows Phone 7?  Well, you don’t have to wonder any longer.  Microsoft has posted a WP7 emulator in HTML5 on their website.   To take the Windows Phone 7 UI for a test drive, point your device to the following URL:

http://aka.ms/wpdemo

It is actually a fairly decent recreation of the user interface.  In addition to the traditional Windows tiles, it is fast and everything flows well together.  Check it out and let us know what you think in the comments below.

iOS 5.1 Beta Suggests New iPhone and New iPad

 A little over twenty-four hours ago, app developers started combing through every line of code in Apple’s beta release of iOS 5.1.  Unfortunately, there does not appear to be a fix for the battery issues on the iPhone 4S.  Instead, app developers discovered suggestions of a new iPhone and a new iPad.  The code contained identifiers to an “iPhone 5,1″ that will contain Apple’s new A6 processor.  In regards to the iPad, there are identifiers of an “iPad 3,3″ which obviously indicate an iPad 3.  There is also an identifier to an “iPad 2,4″ which is either a carrier variation, a GSM+CDMA dual-mode device, a Sprint iPad 2, or a completely new iPad altogether.  Odds are that it will be a Sprint iPad, but secretly, I am hoping for a new smaller iPad.  If you have discovered anything in the beta release, tell us in the comments below.

Review: Up by Jawbone


UP by Jawbone

UP by Jawbone

Even though it took more than a week, I finally obtained an UP wristband by Jawbone.  UP is a unique non-Bluetooth device produced by one of the top Bluetooth companies in the world.  Jawbone is marketing the UP wristband as a device the will help you live healthier.  Let’s find out if UP lives up to all of Jawbone’s health kick hype. Read the full review after the break.
 

What is UP by Jawbone?

For those of you asking “what exactly is an UP?” According to the Jawbone website, it is a combination of a wristband and iPhone application that tracks your activity and sleep while inspiring you to move more, sleep better, and eat smarter. As for its physical attributes, the wristband is made of a spring steel frame encased in durable, sweat-proof, water-resistant, hypoallergenic rubber.  It is water-resistant up to one meter. You can wear the UP wristband twenty-four/seven, which means you can wear it while working out– even while showering. Jawbone claims that the battery will last up to 10 days on a full charge.

As for wearability, the wristband isn’t the most comfortable thing to strap around your wrist.  The exterior is made out of rubber, which makes it grip to your skin.  It doesn’t flow freely like most other wristbands. The metal tips are also annoying and typically get in the way.  I found my self continually turning the wristband upside down just so I can type.

What does it work on?

Currently, UP only works with the following iOS devices, running iOS 4.1 and greater:

  • iPhone 3GS, iPhone 4 and iPhone 4S
  • iPad and iPad 2
  • iPod Touch 4th Generation and newer (GPS functions in the app will be limited)

You need both the app and the wristband. UP is a system – it will not work without the app; the app will not work without the wristband.

The wristband is $99, but its corresponding application is free.  According to the Jawbone website, right now the wristband is only available in black.  Bright red and bright silver are currently back ordered.  Bright blue, bright white, dark red, and dark brown are coming soon.

So, what does it actually do?

UP is a wristband that has a built-in precision motion sensor that automatically tracks your movement, which includes, but is not limited to: steps, distance, calories burned, pace, intensity level, and active versus inactive time.  It also tracks your sleep: hours slept, time to fall asleep, light versus deep sleep, and sleep quality.

What are the different modes?

There are two modes: active and sleep. “Workout” is a sub-mode under “active.” To determine what mode you are in, you simply press the button on the end of the wristband: “active” is a star, “sleep “is a crescent moon, and “workout” is a flashing star. To change modes, you press and hold the button to toggle between active, sleep and workout.

Changing Modes

Active mode is the default mode that tracks your daily activity while you work, play, and do the things that you normally would. It tracks your steps, distance, calories burned, intensity level, and active vs. inactive time. The UP website claims that by compiling motion data from your wristband and your profile information, the application is able to calculate caloric expenditure.  After seven days, I was not provided any information as to “caloric expenditure” or how to even access this information.  Furthermore, the app does not provide the ability to enter calorie intake.

 Active Screen Capture

Sleep mode: when you put your wristband into sleep mode, the band will automatically track how much, and how well, you sleep– hours slept, deep vs. light sleep, awake time, and overall sleep quality. The UP wristband uses sophisticated sensor technology and advanced algorithms to detect your phases of sleep. You can also set a daily wake-up time within the iPhone application.

Sleep Screen Capture

In my opinion, the information you obtain from sleep mode is the most interesting information obtainable from UP.  It tracks your sleep: how long in deep sleep, light sleep, and awake during your sleep cycle.  With this information, you can adjust your sleep cycle to get a better and more restful night’s sleep.

Workout mode is a way to time-stamp a specific activity to view within the iPhone app. It allows you to see how you performed during a specific period of time. If you want to see how many steps you walked on a hike or how many calories you burned on a jog, then enter workout mode when you begin your workout and exit workout mode when you finish. To start a workout: in the active mode, press the button twice and hold on the second press until the LED changes to flashing green and the wristband will vibrate. To take it out of workout mode, press and hold the button.

WorkOut Screen Capture

If you want the added benefit of tracking your distance using GPS, then use the iPhone app to initiate a GPS workout. When starting a GPS workout, you do not need to put your wristband into workout mode. For non-step based activities such as cycling or rowing, use the GPS feature within the application to track your distance.

Work out Active Sleep

Workout mode is probably where I ran into the most problems with UP.  During three workouts, the distance that UP tracked wasn’t even close to the distance I actually jogged.  The first workout, I jogged one mile and UP calculated the distance at .44 of a mile.  The second workout, I jogged a mile and a half and UP calculated the distance at .63 of a mile.  The third workout, I jogged half a mile and UP calculated the distance at .17 of a mile. From what I can tell, it is the back-and-forth rhythm of your arm swaying as you walk/jog/run that the UP counts as steps. Random movements aren’t counted, but consistent ones are. This means that brushing your teeth or vacuuming the carpet will all count as “steps”. It also means that if you are working out in a manner that doesn’t involve consistent movement of your arm, then the workout isn’t tracked.

Charging the UP wristband is fairly simple.  Remove the silver cap with the Jawbone logo to reveal the 3.5mm jack, plug the wristband into the included charger, and plug the charger into a USB port.  The following is the charging indicators:

  • A solid red star or moon = low battery
  • Pulsing red star = charging
  • Solid white star = fully charged

UP Wristband

The wristband does not charge from the iPhone.

After you sync the wristband, the iPhone app will inform you what percentage charge the UP has left.  Jawbone claims that UP lasts 10 days between charges.  After wearing it for seven days, the battery is at 21%.  It appears that ten days is fairly accurate.

What does the iPhone App do?

There are five different pages within the iPhone app: Me Today, Team, Feed, Challenge, and Profile.

Me Today is the first screen, which shows how you are progressing towards your daily goals. You can sync the wristband by pressing the sync button in the top left corner and the plus sign on the top right corner allows you to set alarms, start workouts, and log new meals.

ME Today

The Team page allows you track your friends’ progress and your friends track your progress. Tap the plus sign to search for and add new friends.  When new friends accept your invitation, you can see how they are moving, sleeping, and eating.

Team

The next page is called Feed.  It is a social feed which allows you to see what your friends have been up to.  Join the conversation or send some words of encouragement by tapping the “pencil” icon in the upper right corner.  There is also a “sync band” button on this page as well.

Feed

The Challenge page is where you can join fun challenges and invite your friends to participate.  Tap the magnifying glass to search or the plus sign to create a new challenge.  You can either create a Challenge or you use one that is provided.  The Challenges range from withholding from dessert until you eat your vegetables, to working out thirty minutes a day.

Challenge

The last page is the Profile page. Only people in your UP team can see your full profile, while others just see your photo and name.  You can change your settings, including which information you share by tapping the “Gear” icon in the upper left corner. To check your messages and review your invitations to join other teams and challenges, tap the envelope icon in the upper right corner.

What are the goals?

The goals are the accomplishments that you want to complete each day.  The goals consist of “Daily Move Goals,” “Sleep Goal,” and “Daily Eat Goal.”  The app allows you to start out with an easy goal and move up to more difficult goals.  The goals are as follows:

Daily move goals

  • Barely active – 2,500 steps/day
  • Lightly active – 5,000 steps/day
  • Moderately active – 7,500 steps/day
  • Very active – 10,000 steps/day

Sleep Goal

  • Barely enough – 5 hours/day
  • Get it done – 7 hours/day
  • Full night – 8 hours/day
  • Hit snooze – 10 hours/day

Daily Eat Goal

Logging your meals is as easy as taking a photo and using the app.

  • Better than nothing  – 1 energizing meal
  • Better than most – 2 energizing meals
  • Morning, day, and night – 3 energizing meals
  • Above and beyond – 4 energizing meals
How do you sync the wristband with the iPhone?

To sync your wristband with the app on your iPhone, you simply remove the silver cap with the Jawbone logo and insert the 3.5mm plug into your iPhone’s headphone jack. Then open the UP application on your phone, turn up the volume on the phone, and press the sync button in the upper left corner of the ME screen.  Lights on the band will flash during sync and the application will display progress. When the sync is complete, you will see your band’s remaining battery life. If you have chosen to share your activity and sleep data with teammates, it will be instantly shared in your team feed after syncing.  There is no wireless sync option.

Once you sync the UP to the iPhone, the wristband will reset its statistics.  It appears that the only information the UP keeps is the activity alarm and wake up alarm setting, and the steps taken since the last sync.

Are there any other features?

Yes! You can tracks your meals, set various alarms, and set activity reminders.

UP tracks your meals and helps you eat smarter.  Within the app, you are able to create a photo journal with meals you’ve eaten.  You can use the app to snap quick photos of everything you eat. A few hours after every meal, the app will send you a push notification asking you to rate how you feel.  The answer options range from “okay” to “stuffed” and “still hungry.”  I really did not find this feature of the app to be helpful or functional.  It didn’t provide me with useful information.

Smart Alarm– you can use the app to program your wristband to vibrate on your wrist and silently wake you up. Within 30 minutes of your desired wake up time, the band will intelligently interpret your sleep graph and identify the best moment in your natural sleep cycle to wake you so that you feel refreshed. For example, if you were to set your wake up alarm for 7:30am, the band would vibrate at the best time between 7:00am and 7:30am based on your sleep cycle.  I found the vibration of the wristband to be a more effective means of waking me up than that of my radio clock blaring music.

Activity Reminder– you can use the app to program your band to vibrate on your wrist when you’ve been in active or sedentary for a period of time. You control the hours during which you’ll receive these activity reminders (e.g. 9am to 6pm) and the interval of inactivity that will trigger your band to vibrate (15 minutes, 30 minutes, 45 minutes, 1 hour, etc.).  I actually liked this feature.  Sometimes, you don’t realize just how long you have been inactive.  This feature does an excellent job in reminding to you get up off your rear and walk around a little bit.

Overview

PROS

  • Decent pedometer
  • For average individuals who want a better idea of how active they are
  • It reminds me to get up if I have been sitting too long
  • Tracks my sleep pattern and serves as a pretty cool alarm

CONS

  • Not for the hard-core exercise nuts
  • Not very accurate on distances when working out
  • It doesn’t really count calories and there is no way to input a calorie count
  • The design of the wristband sometimes makes it difficult to wear
  • No wireless or Bluetooth syncing

UP by Jawbone is a decent pedometer.  Beyond that, it is an average device that lets you know how active, or inactive, you are as long as you manually change the modes to correspond with your activity. If you don’t change it to sleep mode before you go to bed, it will not monitor your sleep.  This holds true with every mode.  UP is not for the hardcore exercise nut who wants something scientifically accurate.  It’s a low-level activity monitor that helps you become more aware of your own activity.  I do like the ideas behind UP, and I look forward to future software and hardware updates that will more accurately track daily activities, workouts, and sleep cycles with little to no human interaction.