Monthly Archives: December 2014

Start up: Do Not Track dying, Android’s lost money, EU’s VAT problem, AdBlocking? surprise!, Xiaomi laptop = fake, and more

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Moving from Do Not Track to “ah, just track it then”. Photo by Rh+ on Flickr.
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Hey, it’s the last one of the year. See you in 2015.
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A selection of 12 links for you. Wash repeatedly. I’m charlesarthur on Twitter. Observations and links welcome.

Android hardware profits tanked in 2014 >> Re/code

Down by half from 2013, according to mobile analyst Chetan Sharma:

A lot of that is due to the big drop in profits at Samsung, the largest player in the Android market. China’s Xiaomi gained significant market share, but is only modestly profitable thanks to its slim margins. Meanwhile, other players like Sony and Motorola lost money in their Android-based mobile businesses.

That’s obviously of concern to the hardware companies, but it should also be worrisome for Google.

“It is important for Google that the ecosystem stays healthy and balanced,” Sharma told Re/code. “Without profitability, some of these players will eventually disappear and it will primarily become a Samsung + Chinese OEMs ecosystem, which is probably not what Google wants.”

Not sure Google is too worried, as long as lots of people use Android, or Google apps on iOS.

Ebooks Direct and new EU digital sales rules: what now? >> Out of Ambit

Diane Duane:

If you’re a large company with accountants this is one of those things you just shrug and deal with, since you’re already registered for VAT and you’ll just fold this extra paperwork and bureaucracy-management into all the other paperwork your accountants already deal with. However, if you’re (for example) someone on disability who’s keeping themselves afloat by selling digital comics, or a stay-at-home mom running a small electronic travel-publication business from her kitchen table—or for that matter, if you’re a pair of science fiction and fantasy writers running a small ebook publishing business from a tiny cottage at the foot of the Wicklow Mountains—then the extra bureaucracy and paperwork burden is not at all welcome. For some of our colleagues, this increased burden of regulations and bureaucracy simply means they’ll have to shut down. They can’t afford the cost of VAT registry or an accountant, or they won’t be able to procure the necessary IDs and proofs of location from their customers, much less store them for a decade.

This situation is even more onerous in places where, until now, businesses this small were spared having to register for VAT at all. But the EU law regarding sale of digital goods has no such eligibility threshold—no equivalent level above which you’re expected to afford accountancy services and so forth, since you’re making enough money to make it worthwhile registering for VAT in the first place.

The regulations seem onerous – if you sell anything at all electronically, you have to register for VAT. Regulations like this make a subversion via Bitcoin much more attractive and hence likely, which could have a serious (negative) effect on government revenues.

Here’s proof the Xiaomi MacBook Air clone story is fake

Steven Millward:

A reverse Google image search on the fake Xiaomi laptop reveals that the closest image source seems to be an undated clone, with the splendid name Kaka i5 (pictured below), that already has an orange power button. So the Xiaomi laptop hoaxers simply had to Photoshop on an orange Xiaomi logo.

The dubious story first appeared in English on GizmoChina, a site we’ve never heard of before, and then was picked up without further investigation by well-known sites such as 9to5Mac and BusinessInsider (update: story screenshots here and here, respectively). Not so much Pulitzer prize for journalism as Wurlitzer prize for churnalism.

Round of applause for that last phrase, sir. Chapeau.

AdBlock Plus’s effect on Firefox’s memory usage >> Nicholas Nethercote

Nicholas Nethercote, with what could also be titled “AdBlockPlus actually makes your browser and computer run slower”:

we recently learned that ABP can greatly increase the amount of memory used by Firefox.

First, there’s a constant overhead just from enabling ABP of something like 60–70 MiB. (This is on 64-bit builds; on 32-bit builds the number is probably a bit smaller.) This appears to be mostly due to additional JavaScript memory usage, though there’s also some due to extra layout memory.

Second, there’s an overhead of about 4 MiB per iframe, which is mostly due to ABP injecting a giant stylesheet into every iframe. Many pages have multiple iframes, so this can add up quickly. For example, if I load TechCrunch and roll over the social buttons on every story (thus triggering the loading of lots of extra JS code), without ABP, Firefox uses about 194 MiB of physical memory. With ABP, that number more than doubles, to 417 MiB. This is despite the fact that ABP prevents some page elements (ads!) from being loaded.

An even more extreme example is this page, which contains over 400 iframes. Without ABP, Firefox uses about 370 MiB. With ABP, that number jumps to 1960 MiB. Unsurprisingly, the page also loads more slowly with ABP enabled.

AdBlock Plus has about 19m users. That’s a lot of people penalising their computing experience in order not to penalise their visual experience (and penalise the sites they use).

Fake “The Interview” app is really an Android banking trojan >> Graham Cluley

Researchers at McAfee – in a joint investigation with the Technische Universität Darmstadt and the Centre for Advanced Security Research Darmstadt (CASED), has identified that a threat campaign has been active in South Korea in the last few days, attempting to exploit the media frenzy surrounding “The Interview”‘s release.

McAfee security expert Irfan Asrar tells me that a torrent making the rounds in South Korea, poses as an Android app to download the movie to mobile devices.

However, in truth, it contains an Android Trojan detected by McAfee products as Android/Badaccents.

Android/Badaccents claims to download a copy of “The Interview” but instead installs a two-stage banking Trojan onto victims’ devices.

Amazon-hosted files, sending data back to a site in China, which checks for whether the devices are made in North Korea – though the latter is likely not an important detail.

The slow death of ‘Do Not Track’ >> NYTimes.com

Fred Campbell, who is executive director of the “Center for Boundless Innovation in Technology”, and also a former chief of the Federal Communications Commission’s Wireless Telecomms Bureau:

The idea, known as “Do Not Track,” and modeled on the popular “Do Not Call” rule that protects consumers from unwanted telemarketing calls, is simple. But the details are anything but.

Although many digital advertising companies agreed to the idea in principle, the debate over the definition, scope and application of “Do Not Track” has been raging for several years.

Now, finally, an industry working group is expected to propose detailed rules governing how the privacy switch should work. The group includes experts but is dominated by Internet giants like Adobe, Apple, Facebook, Google and Yahoo. It is poised to recommend a carve-out that would effectively free them from honoring “Do Not Track” requests.

If regulators go along, the rules would allow the largest Internet giants to continue scooping up data about users on their own sites and on other sites that include their plug-ins, such as Facebook’s “Like” button or an embedded YouTube video. This giant loophole would make “Do Not Track” meaningless.

Essentially because, the article points out, collecting user data has become the raison d’etre for so many companies, and the money hose that affords “free” maps, email, and so on. But the US Federal Trade Commission, which is meant to protect consumers, has given up on the task.

How to completely remove Birthdays from Google Calendar >> Medium

Let Brendan Mulligan be your helpful source of future apologies.

How not to run an A/B test >> Evan Miller

Suppose your conversion rate is 50% and you want to test to see if a new logo gives you a conversion rate of more than 50% (or less). You stop the experiment as soon as there is 5% significance, or you call off the experiment after 150 observations. Now suppose your new logo actually does nothing. What percent of the time will your experiment wrongly find a significant result? No more than five percent, right? Maybe six percent, in light of the preceding analysis?

Try 26.1% – more than five times what you probably thought the significance level was.

The “equal sampling” point is often missed in trying to extract significant difference. Terrific piece. Also includes a “Sample size calculator” to help you.

Government secures landmark deal for UK mobile phone users >> GOV.UK

From the Department of Culture, Media and Sport (via Culture minister Savid Javid):

Under the agreement all four of the mobile networks have collectively agreed to:

• a guaranteed £5bn investment programme to improve mobile infrastructure by 2017;
• guaranteed voice and text coverage from each operator across 90% of the UK geographic area by 2017, halving the areas currently blighted by patchy coverage as a result of partial ‘not-spots’;
• full coverage from all four mobile operators will increase from 69% to 85% of geographic areas by 2017;
• provide reliable signal strength for voice for each type of mobile service (whether 2G/3G/4G) – currently many consumers frequently lose signal or cannot get signal long enough to make a call; and
• make the deal legally binding by accepting amended licence conditions to reflect the agreement – it will be enforceable by Ofcom.

What’s odd about this is that the detail of the agreement hasn’t been published, and the problem of coverage tends to be on trains – these requirements could be fulfilled by sticking some mobile masts on the Scottish highlands, but wouldn’t solve many peoples’ problems.

Also, why is a culture minister prodding carriers? Shouldn’t it be the Department for Business, Innovation and Skills?

BlackBerry Classic review: the best BlackBerry ever made >> WSJ

Joanna Stern was a confirmed BlackBerry lover back in the day, and delights in the physical keyboard, trackpad, battery life, call quality, and email-to-calendar features. But:

while I’d love for all those great BlackBerry features to make a comeback, others simply feel out of date.

Calendar and email aside, other preloaded apps are slow and poorly designed. A Rand McNally map from the gas station is likely more up-to-date—and speedier—than BlackBerry’s own maps app. Not only did it struggle to help me find the closest Starbucks in New York City, but it lacks typical features like transit directions and 3-D map options.

BlackBerry recommends dissatisfied users try third-party apps, like Waze or Navfree. But while BlackBerrys can run Android apps, the industry-leader Google Maps isn’t available for the platform.

That brings me to the terrible and confusing app situation. There are now two app stores preloaded on the Classic: Amazon’s App Store and BlackBerry World, which sounds like an amusement park I would have loved in 2008. While you can download Android apps from Amazon’s App Store, many big ones are missing—not just the Google family of apps, but also Uber and Instagram.

You can ignore BlackBerry’s warnings and load other Android apps manually, but it takes work.

So in that sense, it’s still like BlackBerrys from a few years ago – and the app gap is still one that is going to put the standard consumer off.

Highly recommended: Dieter Bohn’s great piece of review writing (which is actual writing as entertainment as well as information): BlackBerry Classic review at The Verge.

Infography: iPhone vs. Android shows north vs. south split (and in real time) >> TomSoft

The results are quite interesting: it shows that the split android/iPhone happens more at a country/continent level than at a user level. USA, England, Japan are in their vast majority « iPhone users », while South America, Spain, Indonesia are much more Android focused. France is one of the few balanced countries.

In other words, seems another north vs. south split, or rich vs. poor (it seems for instance that some Brazilian big cities are iPhone users while the rest of the country is much more Android).

Dubious about this; Android has the majority smartphone installed base in pretty much every country. And geolocated tweets are a tiny part of the total; hard to tell if they’re represented proportionally.

Analysis: another BlackBerry quarter: there must be a horse in there somewhere

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Those BlackBerry results for the quarter to the end of November. Terrible? Yes. A fall in revenues quarter-on-quarter, and a whopping operating and net loss. The title of this post is, yes, a reference to the old joke – the guy with a spade who is working his way through a mountain of horse crap. Someone comes up and asks him what he’s doing. “With this much crap, there’s gotta be a horse in here somewhere,” the man replies. In the same way, I’m fairly sure there’s a profitable business somewhere inside BlackBerry. The trouble is finding it. John Chen has done an impressive job since he came on board just over a year ago. But he hasn’t found the profit either (we’ll get to the little financial twiddling that let Chen claim a profit later). I wrote about how much trouble BlackBerry is in after its last quarter. How are things three months on? There’s obviously a profitable business hidden in there: it provides high-security keyboard-based smartphones to governments and businesses which put a premium on connectivity and security. The trouble is extricating that from the loss-making consumer side, and the high costs of making smartphones at far less than scale, and how to fight off the competition to be in charge of mobile device management (MDM) at big companies and in governments. So, let’s start digging. (Click on images for a large-sized version.) Bad headlines The headline numbers are bad. Revenue fell 33.5% year-on-year to $793m, and 14% sequentially.

GEOGRAPHIC

BlackBerry revenues by geographic region, by quarter

Shown separately: EMEA is the largest, but all are struggling. Source: BlackBerry

BlackBerry geographic revenue by quarter

EMEA is still the biggest region by revenue, but it’s all got much smaller. Source: BlackBerry

The graph shows how things aren’t working for the company. EMEA (Europe, Middle East and Africa) has long been the largest segment, principally because of subscribers in South Africa and the rest of Africa; the UK used to be a stronghold too, but that’s faded. Asia-Pacific hasn’t looked too rosy either for the past few quarters; but those are consumer areas, and that side of BlackBerry’s business just isn’t happening.

HARDWARE

BlackBerry shipped 2m units but “sell-through” (to end users) was 1.9m, which suggests there’s no surplus in the channel now; it’s cleaned out. Does that mean there are no more BB7 devices like the Bold to buy? Again, unclear. But the ASP (average selling price) cratered:

Derived from total hardware revenue divided by handsets shipped. Source: BlackBerry

Derived from total hardware revenue divided by handsets shipped. Source: BlackBerry

Note that the ASP has halved from the December 2008 quarter, six years ago. Chen expects that to pick up now. Yet BlackBerry is struggling to fulfil even quite small demands, it seems. Chen is very vague about how many Passports were shipped (and paid for) in Q3 (transcript from Seeking Alpha)

Going forward, because of the new products, we expect the ASP to start picking back up again. We’re able to fulfil about 200,000 Passport orders that was preordered at the time we announced it, while reducing the manufacturing lead times to roughly now between four to six weeks. However, because we have sold our stock out a number of times in the quarter waiting for the fulfilment, we were only able to fulfil order backlog of Q3 by December 12. So that was clearly already into Q4. And I also want to remind everybody that our revenue of these devices are all recognised on a sell-through basis. So not every one of those units, in fact most of those units revenue are not recognised in Q3. And we obviously will recognise as they lead [ph] up in throughout the next few quarters.

Data point: 61% of Passport sales were in the US. See how much that helped revenues? Oh, sure, it didn’t. Revenues fell in North America. Also, Chen said that the hardware side could be profitable with sales of 10m units per (fiscal) year. It’s some way from that: 5.7m shipped after three quarters of the fiscal year (7m in the past four quarters); or 6.8m “sell-in” (to customers) in three quarters – and the magic 10.2m of sell-in over the past four quarters.

SERVICES

BlackBerry has made lots of profit from services. But it needs to make revenues from services for that to work. The Service Activation Fee (SAF) is what it gets from people who activate BB7 phones. And it’s declining: SAF revenues were down 13% sequentially, and will fall by about 15% in the next quarter according to the finance director. Looking at BlackBerry’s service revenues, those fell from $424m to $364.8m – which is a 13% fall. So that suggests that most of its service revenues are from SAF. That makes sense, looking at how the service revenues track the numbers of subscribers. The correlation between published subscriber figures and service revenues is really strong:

Correlation between BlackBerry subscribers and service revenue

Service revenues and subscriber numbers are closely linked – BlackBerry used to get more money per subscriber than it does now.

The linking lines show the progression of the link between revenue and subscribers; notice how it goes below the correlation line to begin with (more money for fewer subscribers) and then goes above the line, and starts heading backwards (less money for the same number of subscribers). So whereas in the June-August 2010 quarter there were 50m subscribers generating $785m in revenue, for the March-June 2014 quarter, when there were 50m subscribers, they only generated $519m in revenue. And that’s going to continue to decline; on the 15% decline forecast by Chen, that means a $310m service revenue announced in March, covering the current quarter (to the end of February).

SUBSCRIBERS

For some time the best questions in the BlackBerry analyst call have come from Ehud Gelblum at Citi, and he didn’t disappoint. “Is there a subscriber number update that we can hang our hat on?” he asked Chen. Answer: “No, not right now.” We can do some calculating about subscriber numbers, though. There’s a figure of “service revenue per subscriber account” that you can work out from the published number of subscribers and the service revenues. To get to the drop in service revenues, there are three choices: • subscriber numbers stayed the same, but per-subscriber payments fell • subscriber numbers fell, but per-subscriber payments stayed the same • both subscriber numbers and per-subscriber payments fell. If it was the first, wouldn’t you expect Chen to have spoken up and spun it a bit? He didn’t. If it were the second, wouldn’t you expect him to spin it a bit? He didn’t. There’s a clue, though. Here’s Chen talking about the problem of going from BB7 to BB10:

I’m not go to be providing you the margin of the Classic but it is a positive margin and revenue of course is in the $400 plus. But then I lose $3 to $5 a month [in service fees] when that conversion happens. Sometime over the lifetime of this will cross over.

At $3 per month in service revenues, $364.78m suggests about 40m subscribers. If we model about 5m fewer subscribers per quarter over the past four or five quarters, we also get a consistent fall in per-account subscription.

BlackBerry subscriber numbers

The fall in BlackBerry subscriber numbers (red = estimated, based on public data) is pretty fast.

BlackBerry service revenue per subscriber account

Service revenue per subscriber account is constantly falling as consumers, carriers and businesses move away from the Service Activation Fee (SAF).

And according to Richard Yersh, about 80% of those subscribers are business users – so that’s 32m business users and 8m consumers on BB7. On the upside, with 6.9m business licences (pretty much all on free tryout) for its EZPass BES12 server, that does mean lots of potential clients. If – big if – it can get them to sign up for its services. The other problem about falling subscriber numbers is that it gives you fewer people to sell new handsets to. On a basis of a two-year refresh cycle, the further you fall below 40m, the lower the refresh. Over the past seven quarters, the sell-through (to end users) has been 24.6m – average 3.5m per quarter – which would be 28m per two years. Trouble is, the sell-through is falling; the latest is the smallest recorded. Why should things improve?

PROFIT?

Still, it made a profit, right? CFO James Yersh:

In the quarter we also turned in a non-GAAP net profit of $6 million or $0.01 per share. These results were largely attributable to disciplined management of margins and expenses.

“Non-GAAP” means “not using official measurements”. (“GAAP” is “Generally Accepted Accounting Principles”.) I don’t mind companies leaving out exceptionals – one-off payments for laying off staff or closing factories, say. The reasons here are trickier: GAAP operating expenses included $150m of revaluation of its $1bn of convertible debt, the value of which increased. It’s a non-cash charge, and doesn’t affect anything about how the business is actually run. Just as a flashback, the reason why BlackBerry is carrying a debenture debt is because it decided to go for a bailout after a buyout effort failed. The debenture raised $1bn at 6%, giving debenture holders the right to convert the debt into $10 shares in November 2020. The debentures have to be marked-to-market – that is, valued – because they’re a continuing obligation: they’re a risk to the company, because convertible debentures can be a risk to a company through short-selling. But even if we allow the non-GAAP profit of $6m, we have to ask what BlackBerry has ahead of it. Let’s recap: • it’s struggling to fulfil hardware orders, but has cleared out a lot of BB7 inventory, so now has to try to sell lots of handsets, which will be made for it by Foxconn • service revenues are falling • subscriber numbers are falling • it now has to convert business users who had the free EZPass deal to actually pay money, rather than going with a rival for less Actually, a forecast that looks about right to me comes from one of the (many) BlackBerry analysts on Seeking Alpha, who sets out what it will take for the company to achieve profitability in its next financial year: • hardware sales of 13m over the fiscal year (my comment: possible, but it shows no signs of coming close this fiscal year) • service revenues as a result of those hardware sales of $1.27bn for the year (my comment: might just be achievable, at $300m per quarter, which is where it’s heading). There’s a newer article by the same author, who seems pretty sensible. Recommended. BlackBerry used to straddle the smartphone world; now it has become a curio, one with a niche business that it has to turn into profit as the consumer side of its business subsides. But there must be a horse in there somewhere, right?

Start up: Coolpad’s built-in malware backdoor, LG v Samsung, Rockstar’s patent fizzle, Google’s PR spin game, and more

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A Coolpad smartphone. Back door not shown.

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This is the last collection of Overspill links until next week (at least). Have a great Christmas – and thanks to the hundreds of people who are coming to read every day. You’re always welcome.
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A selection of 11 links for you. I’m charlesarthur on Twitter. Observations and links welcome.

SuperBeam Pro: easy & fast WiFi direct file sharing >> iTunes App Store

Works by Wi-Fi Direct (aka p2p sharing). Seems to be superfast, but one also wonders if Apple is going to be entirely happy about this. (Found via Producthunt.)

Rockstar consortium to sell 4,000 patents to RPX Corp. for $900m >> WSJ

Starting late last year, Rockstar sued several companies for allegedly infringing their patents, including Google and Cisco. Last month, Rockstar settled its suits against Google and Cisco. Financial details weren’t disclosed, but Cisco told investors in early November that it had recorded a pretax charge of $188 million to settle the Rockstar litigation.

As part of the deal with RPX, Rockstar will drop the remainder of its suits, which include claims against Samsung Electronics, LG, HTC and Huawei.

The settlements follow others in the long-running smartphone patent wars.

For instance, in May, Apple and Google agreed to drop all lawsuits between the two companies, and in August, Apple and Samsung agreed to end all litigation between the two companies outside the U.S. Apple and Samsung are still battling in federal court in California, where Apple has won two jury verdicts finding that Samsung infringed its designs for the iPhone.

Whether the Rockstar companies recouped its $4.5bn investment is an open question. In the minds of some experts, the $4.5bn figure reflected the high point of a frothy market that developed for patents in the earlier days of the smartphone industry.

The Rockstar companies squeezed more than three years of use out of the 4,000 patents, and will keep licenses going forward. The 2,000 patents they held back from Rockstar—and aren’t part of the sale to RPX—were among some of the most valuable in the Nortel portfolio.

Turns out that smartphone patents were just a sideline which led both Google and its rivals to drop huge amounts. (Google rather more than the others, through Motorola’s continued losses until it could sell it off. But nobody won.)

CoolReaper revealed: a backdoor in Coolpad Android devices >> Palo Alto Networks Blog

Claud Xiao and Ryan Olson:

Coolpad is the sixth largest manufacturer of smartphones in the world, and the third largest in China. We recently discovered that the software installed on many of Coolpad’s high-end Android phones includes a backdoor which was installed and operated by Coolpad itself. Today we released a new report detailing the backdoor, which we’ve named “CoolReaper.”
After reviewing Coolpad complaints on message boards about suspicious activities on Coolpad devices, we downloaded multiple copies of the stock ROMs used by Coolpad phones sold in China. We found the majority of the ROMs contained the CoolReaper backdoor.

CoolReaper can perform the following tasks:
• Download, install, or activate any Android application without user consent or notification
• Clear user data, uninstall existing applications, or disable system applications
• Notify users of a fake over-the-air (OTA) update that doesn’t update the device, but installs unwanted applications
• Send or insert arbitrary SMS or MMS messages into the phone.
• Dial arbitrary phone numbers
• Upload information about device, its location, application usage, calling and SMS history to a Coolpad server.

Fabulous! All that extra software for no charge! (Coolpad is on sale in the west, by the way.)

They say it’s specifically tailored to hide what it does, and that Coolpad has ignored customer complaints about unwanted app installs. Their conclusion:

CoolReaper is the first malware we have seen that was built and operated by an Android manufacturer. The changes Coolpad made to the Android OS to hide the backdoor from users and antivirus programs are unique and should make people think twice about the integrity of their mobile devices.

Google adds song lyrics to search results but it feels like a cheap cash grab >> PCWorld

Ian Paul:

Google has figured out a way to deliver more instant answers in search results and boost music sales on Google Play simultaneously: song lyrics. Following Bing’s lead from October, Google is now surfacing lyrics for a limited number of songs when you search for “[song title] lyrics.”

Unlike Bing, however, you won’t see the full list of song lyrics in your search results. To see the complete lyrics you have to click a link to Google Play. There you’ll also have options to buy the track or subscribe to Google Play’s All Access subscription service.

If Bing’s song lyrics roll out convinced you to switch to Microsoft’s search engine, however, don’t bother switching back. Google’s song lyric catalog is extremely limited compared to its competitor. In fact, the new feature seems like more of a ploy to push people to Google Play than a truly helpful search function.

I hadn’t noted that Bing was already doing song lyrics. Google says it has licensed the lyrics it displays. But – as this article notes, and Techcrunch points out – it’s another annexation by Google of a content business.

LG boss may miss CES due to washing machine fiasco >> CNET

Cho Mu-Hyun:

South Korean prosecutors have imposed a travel ban on Jo Seong-jin, head of LG’s Home Appliance and Air Solution Company, who had been slated to represent LG at the upcoming Consumer Electronics Show 2015 in Las Vegas.

Samsung earlier this year filed a lawsuit for property damages and defamation against Jo and four other LG Electronics executives after the IFA tradeshow in Berlin, Germany, claiming that the LG execs intentionally sabotaged the door hinges of one of its washing machines at an electronics store there. Samsung provided as evidence the damaged washing machine and CCTV footage allegedly showing Jo “willfully” damaging the appliance.

Who knew bathos could be so hilarious.

Xiaomi may adopt sapphire for covers of 5.7in smartphone >> Digitimes

China-based smartphone vendor Xiaomi Technology is likely to adopt sapphire for protective covers of Xiaomi 5, its 5.7-inch flagship model that will be showcased at the 2015 Consumer Electronics Show, Taiwan-based supply chain makers cited industry sources in China as indicating.

Japan-based Kyocera in early 2014 launched smartphones with protective covers made from internally-produced sapphire in the US market through cooperation with Verizon Wireless, while China-based Vivo and Huawei Device also launched smartphones with sapphire covers, the sources said.

If Xiaomi decides to adopt sapphire, existing sapphire production capacity is not sufficient to meet the demand, according to sources with Taiwan-based sapphire wafer makers.

Even with Xiaomi’s smartphone volumes, this probably isn’t possible. Maybe a high-end model?

Why Sony’s breach matters >> Learning by Shipping

Steve Sinofsky, who (of course) used to be at Microsoft:

in late 1996, seemingly all at once everyone started opening Word documents to a mysterious alert like the one below.

This annoying but benign development was actually a virus. The Word Concept virus (technically a worm, which at the time was a big debate) was spreading wildly. It attached itself to an incredibly useful feature of Word called the AutoOpen macro. Basically Word had a snazzy macro language that could do anything automatically that you could do in Word just sitting in front typing (more on this later). AutoOpen allowed these macros to run as soon as you opened a document. You’d receive a document with Concept code in AutoOpen and upon opening the document it would infect the default (and incredibly useful) template Normal.dot and then from then on every document you opened or created was subsequently infected. When you mailed a document or placed it on a file server, everyone opening that document would become infected the same way. This mechanism would become very useful for future viruses.

Looking at this on the team we were rather consternated. Here was a core business use case. For example, AutoOpen would trigger all sorts of business processes such as creating a standard document with the right formats and metadata or checking for certain conditions in a document management system. These capabilities were key to Word winning in the marketplace. Yet clearly something had to be done.

And that was just the start of a long run of malware. But he thinks we’re better off now.

Google just had to spin the Sony hack >> The Illusion of More

David Newhoff on Google’s PR spin around the “Goliath” emails uncovered by the Sony hack, which he calls a Pavlovian bell-ringing for its meme of “internet freedom”:

It’s no secret that motion picture producers and Google have an ongoing dispute with regard to piracy of filmed entertainment, and I think it’s a safe bet both parties regularly consult with counsel regarding their own interests. As such, I personally think one of the more serious results of this leak is the rather dramatic breach of attorney/client privilege. I don’t think we want a society in which hackers can arbitrarily violate this fundamental right in our legal system. Apparently, though, Google’s Sr VP and General Counsel, Kent Walker, was unfazed by this implication — perhaps Google is hacker proof — when he was quoted in Variety saying, “We are deeply concerned about recent reports that the Motion Picture Association of America (MPAA) led a secret, coordinated campaign to revive the failed SOPA legislation through other means.”  And as of this week, Google has launched a campaign it calls Zombie SOPA. Ding-a-ling!

Walker is not speaking as an attorney, but rather as a PR guy, when he plays the word secret like that in order to imply a conspiracy, knowing full well that communications between clients and attorneys are almost always secret. But near the end of the article, he is also quoted plaintively wondering why champions of the First Amendment like the MPAA would “want to censor the Internet.”  Hear them ring! Of course any discussion about legal remedies to mitigate piracy are tantamount to censorship, right?

Why Samsung is losing out to low cost rivals >> Jana Mobile

Samsung’s flagship Galaxy series is extremely popular among the emerging market smartphone users that make up mCent’s user base (eight of the top ten devices used to access the mCent app in November 2014 came from the Samsung Galaxy series). However, the Galaxy is likely to become less popular as lower-priced competitors enter the market. This is partly due to the total price of components and assembly for Galaxy devices, which have steadily risen in the face of prevailing market trends. If the current trend is sustained, manufacturing and component costs for a Samsung Galaxy [from 2010] will be higher than the global average selling price for a smartphone in 2015…

…In November 2014, Samsung accounted for 40% of sessions on the mCent app for Android. It has been the most popular smartphone brand among users in our markets since the launch of the mCent app in June 2014, yet its popularity has been waning. In the key markets of Brazil, Indonesia, and India, Motorola, Smartfren, and Micromax have become noticeably more popular. We expect this trend to continue into 2015.

With the caveat, however, that they’re talking about the flagship Galaxy phones, not the cheapo phones that it sells at rock-bottom prices.

Though this is becoming a story that everyone is telling: Samsung losing out to the low-cost rivals. Its earnings guidance for the fourth quarter will come out in early January.

Mathematicians have finally figured out how to tell correlation from causation >> Quartz

Zach Wener-Fligner:

determining causal relationships is really hard. But techniques outlined in a new paper promise to do just that. The basic intuition behind the method demonstrated by Prof. Joris Mooij of the University of Amsterdam and his co-authors is surprisingly simple: if one event influences another, then the random noise in the causing event will be reflected in the affected event.

For example, suppose we are trying to determine the relationship between the the amount of highway traffic, and the time it takes John to drive to work. Both John’s commute time and traffic on the highway will fluctuate somewhat randomly: sometimes John will hit the red light just around the corner, and lose five extra minutes; sometimes icy weather will slow down the roads.

But the key insight is that random fluctuation in traffic will affect John’s commute time, whereas random fluctuation in John’s commute time won’t affect the traffic.

Smart – watch for this to filter through into all sorts of everyday algorithms in the next few years.

Did North Korea really attack Sony? >> The Atlantic

Bruce Schneier:

Allan Friedman, a research scientist at George Washington University’s Cyber Security Policy Research Institute, told me that from a diplomatic perspective, it’s a smart strategy for the U.S. to be overconfident in assigning blame for the cyberattacks. Beyond the politics of this particular attack, the long-term U.S. interest is to discourage other nations from engaging in similar behavior. If the North Korean government continues denying its involvement no matter what the truth is, and the real attackers have gone underground, then the U.S. decision to claim omnipotent powers of attribution serves as a warning to others that they will get caught if they try something like this.

Sony also has a vested interest in the hack being the work of North Korea. The company is going to be on the receiving end of a dozen or more lawsuits—from employees, ex-employees, investors, partners, and so on. Harvard Law professor Jonathan Zittrain opined that having this attack characterized as an act of terrorism or war, or the work of a foreign power, might earn the company some degree of immunity from these lawsuits.

I worry that this case echoes the “we have evidence — trust us” story that the Bush administration told in the run-up to the Iraq invasion.

Schneier is very sceptical of the US explanation. It’s noticeable how few security experts are on board with the US’s claims over this.

Start up: Google gets lyrical, Snapchat clone killing, the stolen smartphone business, and more

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“Do you know Google’s getting into another content business?” “You hum it, I’ll play it”. Photo by guzzphoto on Flickr.

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What did they say? Google including song lyrics in search results >> WSJ Digits blog

Google is trying to answer some of the world’s biggest questions. That list now includes: Wait, what did he just sing?

Song lyrics are now part of the increasingly robust packet of information Google shows in its search results, a move that threatens traffic to popular lyrics sites.

It’s unclear when Google started showing lyrics on the initial results people see when searching for, say, “Love Is Blindness lyrics.” (A TechCrunch article traces it to a post on a blog about SEO that points to this Google+ post from Dec. 19.) For now, the lyrics apply only to U.S. searches.

A Google spokewoman said, with apologies to Led Zeppelin we’re sure, “There’s a feeling you get when you turn to a song and you know that the words have two meanings. Well it’s whispered that now if you go search the tune, maybe Google will lead you to reason. Ooh, it makes you wonder.”

Makes you wonder if lyric sites are stuffed – as in, how can they make their businesses work now? How many content businesses is Google going to tramp into?

North Korea experiencing severe internet outages >> Associated Press

North Korea experienced sweeping and progressively worse internet outages extending into Monday, with one computer expert saying the country’s online access is “totally down.” The White House and the State Department declined to say whether the U.S. government was responsible.

That’s the internet in North Korea, home to 24m people, where the internet is available to.. nobody quite knows how many people.

Huge privacy flaw uncovered in mobile phone networks >> HOTforSecurity

Graham Cluley:

In the last year or so there’s been a lot of bad news about how intelligence agencies and hackers can exploit weaknesses in internet communications to snoop upon our conversations and private messages.

Indeed, such has been the avalanche of revelations that it’s not uncommon at all to hear security researchers advise you to turn off your phone’s WiFi, and communicate via regular calls vand SMS messages instead because of the 3G phone network’s built-in advanced encryption.

Well, there’s bad news folks…

Two German security researchers have uncovered what they claim are serious security flaws that could allow criminals and intelligence agencies to spy upon private phone calls and text messages transmitted via cellular networks.

Still, as long as it doesn’t interfere with our film release schedule, that’s OK.

2015: The Year of Android >> Rusty Rants

Russell Ivanovic of Shifty Jelly:

I don’t often make predictions, but I’m willing to make this one: 2015 is going to be a huge year for Android. I’m not talking about the Market Share Wars, I never cared for them and Android won them long ago. I have little interest in the Who Makes The Most Money Wars either, I’m often baffled as to why people even care. As a developer and user of mobile platforms I’m more interested in app profitability, quality and diversity. I think 2015 is going to be a huge one for Android in this regard. Don’t believe me, ok, allow me to walk you through why.

Let’s start off with a myth: “No one makes money on Android”. I hear that all the time. The irony of the fact that we make 80% of our daily income on Android doesn’t escape me as these people wax eloquent about how this is a well established fact

Shifty Jelly does nicely from a podcast app; but Apple offers a free podcast app, so it’s not surprising that he sees money from Android and not iOS.

Reading this, though, he doesn’t quite explain what will make 2015 the specific year, or how we’ll measure it. More that it’s not a bad place for developers to be – which those who are interested in it probably know already.

More subtly, Android’s expansion in 2015 is going to be in low-income countries. Total revenues will go up, but per-install revenues will probably fall – and mobile ad rates will fall in line with installation growth.

6 things I learned from riding in a Google Self-Driving Car >> The Oatmeal

Matthew Inman:

Riding in a self-driving car is not the white-knuckled, cybernetic thrill ride one might expect. The car drives like a person, and after a few minutes you forget that you’re being driven autonomously. You forget that a robot is differentiating cars from pedestrians from mopeds from raccoons. You forget that millions of photons are being fired from a laser and interpreting, processing, and reacting to the hand signals of a cyclist. You forget that instead of an organic brain, which has had millions of years to evolve the cognitive ability to fumble its way through a four-way stop, you’re being piloted by an artificial one, which was birthed in less than a decade.

The unfortunate part of something this transformative is the inevitable, ardent stupidity which is going to erupt from the general public. Even if in a few years self-driving cars are proven to be ten times safer than human-operated cars, all it’s going to take is one tragic accident and the public is going to lose their minds. There will be outrage. There will be politicizing. There will be hashtags.
It’s going to suck.

But I say to hell with the public. Let them spend their waking lives putt-putting around on a crowded interstate with all the other half-lucid orangutans on their cell phones.

The secret world of stolen smartphones, where business is booming >> Wired

Matthew Shaer:

A picture slowly emerged of a so-called credit-mule scheme, ingenious in its simplicity and impressive in its reach. Middlemen such as Shamshad were dispatched to seemingly random American cities, where they trolled homeless shelters and halfway houses, offering $100 to anyone who would buy, on their behalf, a few on-contract phones from a local electronics store.

Back in California, the contraband was handed off to Wen and Tan, who arranged to have the phones shipped to their contacts in Asia. The profit margin was enormous: In North America, wireless carriers typically subsidize the cost of our smartphones in order to lure us into multiyear voice and data contracts. To obtain a phone, in other words, we fork over a small fraction of the device’s actual market worth. Wen and Tan took advantage of the system by obtaining iPhones — through middlemen and mules — for $200 a pop, then selling them in China for close to $1,000.

Records obtained by the eCrime Unit indicate that in a single year, Wen mailed 111 parcels using his FedEx account. By the time the whole operation was brought down in March of 2013, he and his wife had become very wealthy, to the tune of close to $2.5m in annual income.

Terrific article, rich in detail and observation. The numbers implied in the insurance sums and the numbers is amazing.

From messaging apps to ecosystems : Line, WeChat, Viber & Others >> Counterpoint Technology

Neil Shah:

It is foolish to ignore the growing scale of these platforms which are growing in capabilities and are becoming ecosystems in themselves.

If we look at carefully these platforms are beginning to look identical and at some point in future will become a commonplace. However, the differences that will make them standout or survive in long run is their business model and their reach in terms of capabilities and user base.

These ambitious app based platforms are expanding their reach across multiple areas attracting users to spend more time communicating, shopping as well as consuming content. These are creating greater amount of stickiness and using their horizontal business model to scale and with presence on the major platforms from iOS to Android to Windows to target the complete pie of smart devices users.

Notably including Samsung ChatON (reckoned here to have 100m monthly active users), but not Apple’s iMessage – which probably has about 300m MAUs.

What happened when Marissa Mayer tried to be Steve Jobs >> NYTimes.com

Nicholas Carlson (in an extract from his forthcoming book on Yahoo:

Previous Yahoo C.E.O.s had underinvested in mobile-app development, plowing money into advertising technology and web tools instead. A couple of days into the job, Mayer was having lunch at URL’s when an employee walked up to her and introduced himself as Tony. “I’m a mobile engineer,” Tony said. “I’m on the mobile team.”

Mayer responded to Tony, “Great, how big is our mobile team?” After some back and forth, Tony replied that there were “maybe 60” engineers. Mayer was dumbfounded. Facebook, for instance, had a couple of thousand people working on mobile. When she queried the engineering management department, it responded that Yahoo had roughly 100. “Like an actual hundred,” Mayer responded, “or like 60 rounded up to 100 to make me feel better?” The department responded that it was more like 60.

Companies like Facebook and Google are known for their fast-paced product updates. Yahoo, by contrast, was sluggish. Yahoo Mail, with its 30 billion emails a day, was arguably the company’s most important product. But despite the decline in desktop email use, Yahoo hadn’t built mail apps for smartphones. It had simply made the Yahoo Mail website usable on smaller mobile screens.

Although we know how the story turns out, it seems like this is going to be a book worth reading. (There are all sorts of pieces you could pull out of this article. Yahoo has been such a mess for so long.)

Microsoft removes all third-party Snapchat apps from the Windows Phone store >> TechCrunch

Jon Russell:

The ban on third parties may not last for too long, however. We know that Snapchat is working on building a mobile messaging platform, and that could mean that it finally releases an official API to allow third parties to connect to its service while providing increased protection for user privacy.

That said, the company recently introduced video advertising so keeping its service free of third party apps on all devices gives it absolute control over targeting its user base with ads, thus potentially maximizing its value to advertisers.

None of this means much for Snapchat fans on Windows Phone, who have never had an official app and now don’t even have unofficial ones. Such are the problems of being a ‘third’ platform in today’s iOS-Android dominated world.

I recall Stephen Elop at Nokia in mid-2013 pointing to a Snapchat-compatible app as evidence of how things were improving. (It’s worth looking back at to see how things haven’t changed for Windows Phone in those 18 or so months.) Wonder if this clearout was some sort of precondition by Snapchat before it would build a first-party app.

Start up: Samsung ChatON going off, USB apps for iPad, the ‘uncanny valley’ for algorithms, Sony hack history, and more

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Bitcoin mining: significantly lower health and safety risk than other forms.

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Apple, is USB allowed now? >> Medium

Matt Ronge, pointing to Duet Display, which lets you use an iPad (via Lightning) as an extra screen for a Mac running 10.9 or better:

For the past year, we’ve been working on an app (launching early 2015) that turns your iPad into a graphic tablet for your Mac (like a Wacom tablet). Our app at its core also streams video content from the Mac to the iPad, so we were very interested in USB connectivity early on in our project.

We knew that using USB instead of Wifi was a decision we had to make early on, as it would completely change our direction of development. USB offers a reliable, low latency connection which is 100x better than any wireless technology (especially with Yosemite experiencing serious Wifi reliability issues).

We were also very hesitant to build a business around a decision Apple may change on a whim. So we submitted an app to test the waters, would Apple allow an app that requires USB? An Apple representative called us and informed us USB connectivity was not allowed.

Duet Display looks like it could be fun, though one usually wants a bigger display – but if you had an 11in Macbook Air, a full-size iPad would almost double your screen size, and improve the resolution a lot.

Our tactics for Gamergate are outdated >> Space Channel 6

Brianna Wu:

For me, personally, I intend to keep lessening the amount I’m posting and writing about Gamergate. Everyone knows they are very sexist, very unhealthy individuals. Thanks to my Patreon, GSX’s full time staffer will document this behavior for law enforcement leaving me free to speak out for change in the industry and make inclusive games.

My suggestion to people rightly outraged about this movement, is to ask yourself what you currently want to accomplish. It’s my suggestion that it would be most helpful to shift the conversation back to representation in the industry. I think the gains in raising awareness of Gamergate have diminished, while the threat of giving the lunatic fringe the attention they desire has stayed the same.

To be blunt, I’m not sure endlessly talking about Gamergate does anything anymore.

I’m not sure it did past the second month. Idiots enjoy being idiots, and won’t be dissuaded from that track.

Topsy suggests a gradual dimunition in the number of tweets on this topic from 50,000 to 20,000 over the past month (and bear in mind that the obsessives tweet many, many times per day).

BuildZoom office burglary – $5000 reward – update!! >> BuildZoom

David Petersen of BuildZoom, from which equipment was stolen:

After our story was covered on ABC 7 News, we were contacted by a nearby startup that was burglarized on July 6th and July 13th. Comparing footage, it’s clear that the same person broke into both offices.

Update 2: It appears that this woman is breaking into SF startups with a Doorking / DKS code entry system. She has obtained a master key and is able to enter any office with this system.

Update 3: We believe we have identified the burglar. It’s a local San Francisco woman who has been convicted of similar crimes in the past. An acquaintance of hers emailed with photographs and additional information. It certainly looks like her.

Someone with a master key for office doors in SF? That’s a problem.

Facebook’s popularity among teens dips again >> Bloomberg

A report yesterday by Frank N. Magid Associates Inc. found that the portion of 13- to 17-year-old social-media users in the U.S. on Facebook slipped to 88% this year from 94% in 2013 and 95% in 2012. In the same period, Twitter and messaging applications rose in popularity in that age group, the study showed.

The Menlo Park, California-based company first warned a year ago that teens weren’t using its website as often as before. Facebook stopped discussing teen usage on its earnings calls after last year’s disclosure alarmed investors. While the issue was all but forgotten as the company’s advertising revenue reached new highs, it’s a bigger concern now, according to Tero Kuittinen, a managing director at Magid in New York.

“You look at Facebook and you say, ‘Wow, something really changed in 2014,’” Kuittinen said. “If kids are starting to use so much of their daily time on messaging apps, surely it’s going to hurt somebody.”

Among 13- to 17 year-olds, Twitter usage climbed 2 percentage points to 48%, according to the report. While more people use Facebook and its messaging app than any competitor, its user base tends to be older, with 55% of Facebook Messenger users being 37 or younger. By the same measure, 86% of Snapchat Inc.’s users and 83% of Kik Interactive Inc.’s users are under 37.

Seems reasonable to think that messaging apps are pulling teens away from Facebook.

2015: the year we get creeped out by algorithms >> Nieman Journalism Lab

Zeynep Tufekci:

It turns out computers have a built-in “uncanny valley” (that creepy feeling android robots generate when they kind of look human). Just like we don’t want robots too human-shaped — we want them to know their place — it turns out we aren’t too happy when our computers go from “smart” (as in automating things and connecting us to each other or information) to “smart” (as in “let me make that decision for you”).

Algorithmic judgment is the uncanny valley of computing.

Algorithms (basically computer programs, but here I’m talking about the complex subset that is being used to calculate results of some consequence, which then shape our experience) have become more visible in 2014, and it turns out we’re creeped out.

Tufekci is super-smart, and always ahead of the curve.

htmlwidgets: JavaScript data visualization for R >> RStudio Blog

Today we’re excited to announce htmlwidgets, a new framework that brings the best of JavaScript data visualization libraries to R. There are already several packages that take advantage of the framework (leaflet, dygraphs, networkD3, DataTables, and rthreejs) with hopefully many more to come.

An htmlwidget works just like an R plot except it produces an interactive web visualization. A line or two of R code is all it takes to produce a D3 graphic or Leaflet map. Widgets can be used at the R console as well as embedded in R Markdown reports and Shiny web applications.

This looks terrific (if you’re into R.)

Bitcoin’s collapse is worse than the ruble’s >> Quartz

Matt Phillips & Melvin Backman:

Why the collapse in bitcoin?  One of the clearest answers seems to be that it’s gotten harder to use bitcoin for some of its less savory uses, such as dodging taxes and buying drugs. Governments increasingly are trying to clamp down on the “dark web” sites where bitcoin quickly was the cryptocurrency of choice. Collapses of large, unregulated bitcoin exchanges — such as Mt. Gox — have done little to instill confidence in the currency either.

Mt Gox was a key reason for the start of the collapse. Yet the nearer Bitcoin gets to its 2011/12 levels, and the more people are using it (thus ironing out the speculative element), the more it looks like a really useful product. The implications of the blockchain are fascinating.

Absolute Sownage >> Attrition.org

Over the last two months, the multi-national Sony Corporation has come under a wide range of attacks from an even wider range of attackers. The backstory about what event prompted who to attack and why will make a mediocre made-for-TV movie someday. This article is not going to cover the brief history of hacks; readers can find details elsewhere. Instead, the following only serves to create an accurate and comprehensive timeline regarding the recent breaches, a cliff notes summary for easy reference.

Starts in April 2011, by the end of which we were up to 21. Current count: 24.

Why the sharing economy could be the internet’s most divisive revolution yet >> The Guardian

By me, on the “sharing economy” companies such as Uber and AirBnB:

what would happen if an Airbnb guest was harmed by fire, or a carbon monoxide leak – a constant concern for hotels. Airbnb’s site says owners “should” make sure they have a functioning CO detector and are following gas safety regulations. But although the money for any stay is paid via Airbnb, Robinson says he doesn’t know who would be responsible if someone were injured that way.

“I’m not a lawyer,” says [Patrick] Robinson [AirBnbB’s public policy director in Europe]. It seems surprising that the eventuality hasn’t come up in business meetings, but Robinson declines to discuss it.

It’s a scenario that has exercised insurance companies, which are wrestling with the question of who is liable in a collision involving a car being driven on an Uber journey, or one of the other car rental services, or a complaint involving Airbnb clients. Premiums might rise, or need extra tweaking.

I still find it surprising if AirBnB hasn’t discussed – and even worked out a plan – for the eventuality of poisoning or death at one of its lets, given that it receives the payments for them.

Samsung says ‘cya’ to ChatON smartphone messaging app >> WSJ

Samsung is closing ChatON, for which it claims a “user base” of over 200m users. To which everyone else says: O RLY? And they used it so much you’re closing it?

“Samsung’s failure in messaging apps is endemic of a broader struggle for the company in software and services,” said Rajeev Chand, managing director at Rutberg & Co., a San Francisco-based investment bank that focuses on the mobile industry.

Mr. Chand said he was puzzled by Samsung’s inability to parlay its massive handset sales into at least some traction in software and services, calling it “the defining issue for the company’s long-term success.”

“If they don’t succeed in apps and software, Samsung has a very large risk of being relegated to an increasingly shrinking-margin company,” he said, referring to the recent gains that low-cost Chinese and Indian competitors have made in handset sales in recent months.

Add in this from April:

Strategy Analytics, a Newton, Mass.-based research firm, said in a report Tuesday that U.S. users of Samsung’s devices spend little time on its own messaging, music and voice-activated applications including apps like ChatON, the South Korean company’s answer to services like WhatsApp, Line and Viber.

The report said that U.S. users of Samsung’s Galaxy S3 and S4 smartphones logged an average of six seconds per month using ChatON, compared to more than 11 hours per month on Facebook and about two hours per month on Instagram.

Six. Seconds. This is Samsung’s problem, writ large (or small). By contrast, Apple failed with Ping – but that was a social media app built on top of iTunes, itself a successful Apple-owned platform; iTunes remained. Samsung is left with nothing.

And it was always reluctant to give any hard numbers about ChatON. The irony is that ChatON is going to remain open for slightly longer in the US – apparently that’s one of the busier places.

Even more fun: at the end of November, Samsung categorically denied that it was going to close ChatON. Denials, eh?

Corrected: the author of the Gamergate post is Brianna Wu, not Anita Sarkeesian. Apologies, and thanks to Ron Hayter.

Start up: so who did hack Sony? Apple on Pay, Pegatron workers, BlackBerry’s phone timing, and more

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“Hey, from here you can see the posters for The Interview coming down!” Photo of Pyongyang, North Korea, by orangetruck1 on Flickr. (Searching Flickr for CC-licensed photos of “North Korea” yields some strangely anodyne pictures from “North Korea travel”.)

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Why the Sony hack is unlikely to be the work of North Korea >> Marc’s Security Ramblings

Marc Rogers, with the only piece you need to read on the Sony hack, making 10 points (a couple excerpted here):

It’s clear from the hard-coded paths and passwords in the malware that whoever wrote it had extensive knowledge of Sony’s internal architecture and access to key passwords. While it’s plausible that an attacker could have built up this knowledge over time and then used it to make the malware, Occam’s razor suggests the simpler explanation of an insider. It also fits with the pure revenge tact that this started out as.

4. Whoever did this is in it for revenge. The info and access they had could have easily been used to cash out, yet, instead, they are making every effort to burn Sony down. Just think what they could have done with passwords to all of Sony’s financial accounts? With the competitive intelligence in their business documents? From simple theft, to the sale of intellectual property, or even extortion – the attackers had many ways to become rich. Yet, instead, they chose to dump the data, rendering it useless. Likewise, I find it hard to believe that a “Nation State” which lives by propaganda would be so willing to just throw away such an unprecedented level of access to the beating heart of Hollywood itself.

5. The attackers only latched onto “The Interview” after the media did – the film was never mentioned by GOP right at the start of their campaign.

CNN was reporting on Thursday night that (unnamed) hackers stole a sysadmin’s credentials to get access to the company’s system. That fits with everything we know, though that’s not unknown for hackers who aren’t nation states; it’s been used by external hackers trying to get into companies for ages. What doesn’t fit a nation state attack is what Rogers points to in No.4: if North Korea wanted, it could ruin Sony silently.

What still puzzles me is why US sources are indicating that they think it is North Korea. Perhaps I’m too disbelieving it would do something weird like this.

Apple Pay will change marketing, not just payments >> Business Insider

If you think Apple Pay is only about payments, you’re not alone. UBS recently noted that Apple Pay (unlike Google Wallet) doesn’t let you “push” offers to people, and speculated that flaw would keep some merchants away from the platform.

[CEO of Vibes, Jack] Philbin disagrees because Apple already has a way for merchants to push these offers: Passbook. 

“The marketing is done through Passbook,” said Philbin. “Apple Pay is just the payment functionality.”

Passbook has been around since 2012. What’s changed is that iPhone users are paying a lot more attention to their mobile wallets now that there’s an easy way to pay for things from their phones as well.

Vibes’ clients — which include retailers like Gap, The Home Depot, and Bloomingdales— saw a 54% increase in people installing coupons or loyalty cards into Passbook from September to October, which Philbin attributes to the introduction of Apple Pay.

Apple ‘failing to protect Chinese factory workers’ >> BBC News

Filming on an iPhone 6 production line showed Apple’s promises to protect workers were routinely broken. It found standards on workers’ hours, ID cards, dormitories, work meetings and juvenile workers were being breached at the Pegatron factories.

Apple said it strongly disagreed with the programme’s conclusions. Exhausted workers were filmed falling asleep on their 12-hour shifts at the Pegatron factories on the outskirts of Shanghai.

One undercover reporter, working in a factory making parts for Apple computers, had to work 18 days in a row despite repeated requests for a day off. Another reporter, whose longest shift was 16 hours, said: “Every time I got back to the dormitories, I wouldn’t want to move.

“Even if I was hungry I wouldn’t want to get up to eat. I just wanted to lie down and rest. I was unable to sleep at night because of the stress.”

Apple declined to be interviewed for the programme but said “”We are aware of no other company doing as much as Apple to ensure fair and safe working conditions.We work with suppliers to address shortfalls, and we see continuous and significant improvement, but we know our work is never done.”

Pegatron’s Wikipedia entry doesn’t say who else it makes things for. Its corporate social responsibility report for 2013 (PDF) says “‘Joyful Working; Happy Living’ is Pegatron Group’s caring philosophy to employees.” Some employees, perhaps.

Former Apple supplier Wintek shutters China plants >> FT.com

Taiwanese group Wintek, formerly a major supplier of touchscreens for Apple’s iPhone and iPad, has shuttered two plants in southern China and axed 7,000 jobs, leaving unpaid suppliers to chase debts of Rmb230m ($37m).

Armed police surrounded the plants in the city of Dongguan as workers collected their final pay this week, while suppliers demonstrated in front of the factories.

The company sought insolvency protection in October, filing in Taiwan for a restructuring of more than NT30bn ($961m) in debts owed to both local and mainland lenders and suppliers.

The move to in-panel technology with the iPhone 5 didn’t go Wintek’s way; now it’s laying off thousands of staff and may go bust. Keeping up with Apple’s demands is tough.

Stop the presses! >> Counternotions

Kontra, on the dire “reporting” of the (untrue) suggestion by the replacement plaintiff’s lawyers that Apple had deleted songs on peoples’ iPods (it hadn’t):

Yes, journalism isn’t exact science, but from epidemiology to space exploration, from technology reporting to business coverage, the sheer amount of fact-free, opinion-framing ‘news’ is now exceeding our collective ability to notice, care or correct. Yes, journalism has always been messy, but the speed with which it’s generated, aggregated and distributed may now be overwhelming us. Yes, we have ever growing access to filtering software to shape our own sphere of coverage, and yet tens of millions of people read, and likely most believed, that Apple had deliberately and secretly deleted competitors’ songs from users’ iPods, an impression which may never be sufficiently corrected.

All people needed to do was say “Apple deleted songs, court told” and they’d have been factually correct, even if the claim is bunkum.

Sony Pictures employees now working in an office “from ten years ago” >> TechCrunch

John Biggs:

She works for Sony Pictures. She said she’s now working in an office on lock-down, a throw-back to an earlier time when the Internet wasn’t around.

“We are stuck in 1992 over here,” she said.

She requested anonymity but agreed to talk a bit about her day-to-day experience as a Sony Pictures Employee post-hack. She said things were getting back to normal and were, in some ways, more pleasant.

But the thing that bothers her most is the need to depend on old technology to do new work, now.

“We had barely working email and no voicemail so people talked to each other. Some people had to send faxes. They were dragging old printers out of storage to cut checks,” she said. “It was crazy.”

…“My bank account was hacked [on the day of the first attack,]” said our source who works at SPE offices in Los Angeles. “At first we just thought it was total coincidence.”

Now she suspects someone found something in the email dump that allowed them to access her accounts.

Smart journalism from Biggs.

Why the BlackBerry Classic is critical to the new BlackBerry >> CNET

Roger Cheng:

CEO John Chen made a few remarks, then pulled out the Classic for a photo opportunity. But as the presentation went on, it was clear whom the company was targeting: the IT guy working in a highly regulated business.

The conversation dashed past the typical walkthrough of the Classic’s features, spending a healthy chunk of time on the phone’s enterprise software capabilities and looping in guests like the chief information officer for Citco Fund Services, the founder of Niederhoffer Capital Management and the chief operating officer of Ontario-based Mackenzie Richmond Hill Hospital.

It’s a far cry from Alicia Keys, the pop music sensation BlackBerry once played up as its “global creative director.”

The timing of this launch fascinates me: two days before BlackBerry announces its quarterly results. Look back to September, and BlackBerry launched the Passport on 24 September – two days before it announced (not great) results.

And yes, BlackBerry’s quarterly results are today (Friday) at 1300GMT. Analyst forecasts are for $936m in revenue (a fall against the year-ago period) and a 5c per share loss. Perhaps we’ll hear how many Passports were sold, and whether it has a future.

Different relationships with their phones: iPhone versus Android >> The Network Garden

Mark Sigal did some user testing:

in the new app that we are building, one question in user testing was how important having a desktop web version of the functionality would be.

Get this, 90% of the Android users thought it was pretty important, most commonly because the test user saw the PC as the central part of their computing experience — even though the app is for a highly mobile type of action.

By contrast, 90% of the iPhone users looked cockeyed at the question, noting that the action is designed for palm in the hand, on the go types of behaviors, adding (I’m paraphrasing) that their iPhone is their hub, not the PC.

Same questions. Same product feature for feature; a variety of young to middle age males and females, and the only difference is iPhone versus Android.

His blog is worth reading more generally.

Nokia publishes maps on your iPhone, leaves Lumia in the shadows >> IT Vikko

This is a link to the Google Translation of this page (the headline is from the Bing translation, but it doesn’t have a static URL):

Nokia is not planning to upgrade in the near future the Here Maps application for Lumia phones. “When Nokia made handsets, we were a little different. Now, we are developing application on the basis of a realistic markets.”

Ouch. Harsh divorce; the parent doesn’t want to see its child any more.

Start up: smartphone epochs, UK buyers slow on tablets, OnePlus faces India patent suit, Uber redux, and more

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The Innovator’s Stopwatch. Part 2 >> Asymco

Horace Dediu:

As diffusion proceeds through each adopter category, the product is re-positioned to address each group’s presumed behavior. Innovators (first 2.5% of the population) are offered novelty, a chance to experiment and uniqueness of experience; early adopters are offered a chance to create or enhance their position of social leadership; the early majority build imitate the leadership of the early adopters and justify it with productivity gains; the late majority are skeptics but, given a set of specific benefits, join the earlier adopters. Finally the laggards reluctantly agree to adopt as their preferred alternative of not adopting disappears.

The theory suggests that a firm can be successful if they modify their marketing and perhaps product mix to accommodate these adopter categories in a timely manner.

If this is the case however, why is it that those who have access to these data (i.e. who is buying and when) not to do the right thing?

Really you have to read it for the graphs, showing the rise and fall of Palm/WinMob, Nokia, Samsung (projected), and the rise of China and India. But what about Apple?

Mobile Innovation: we need to get past the App Store duopoly >> Continuations

Albert Wenger, of VC firm Union Square Ventures:

Many people have pointed to the amazing commerce integrations in WeChat in China as an example of what can be done. What fewer have said though is that China does not have an app store duopoly. So WeChat has been free to innovate on commerce without having to live in the confines of what Apple or Google deem appropriate (and hence not in conflict with their own ambitions). As far as I can tell Chinese smartphones work just fine and any claim that centralized app stores are required for security or quality control is simply a pretense for wanting to extract more economics. The price of Chinese phones also does away with the claim that cross subsidization is required for adoption or phone innovation.

I thought USV was sure that Android was going to be the only app store anyone would need. Now it isn’t? Also, why not just go HTML5, as some of the commenters suggest?

Huawei, with 30,000 patents in China, is preparing to sue Xiaomi >> Patently Apple

local first-generation smartphone manufacturer rivals in China such as Huawei and ZTE are now going after Xiaomi where they know they’re weak: Patents. With Ericsson’s success against Xiaomi in India, both Chinese rivals are now racing to file lawsuits. 

A Korean report tapping into industry sources stated that earlier this week Huawei and ZTE were known to be preparing to sue Xiaomi, OPPO, and Bubugao for infringement of their patent rights.

Earlier, Huawei and ZTE sent out a warning letter to these companies asking them to stop infringing on their patents and pay legitimate royalties. However, as they did not respond, Huawei and ZTE decided to take legal action against them.

An industry source added that “It was confirmed that China’s second-generation smartphone manufacturers had been violating four to five patents related to communications technology, including WCDMA, which is used in 3G mobile communications.”

Huawei and ZTE are strong patent holders, collecting more than 70 percent of relevant royalties in China’s mobile phone market. Huawei has nearly 30,000 of the 39,000 mobile phone patents in China. It has also registered 7,000 patents this year alone.

Oh dear, it’s all fun and games until someone loses an eye.

OnePlus has been ordered to stop selling the OnePlus One in India after legal action by Micromax >> Android Police

Ryan Whitwan:

Micromax—which plans to launch its YU brand with Cyanogen soon—has gone to the Delhi High Court to allege OnePlus is infringing on its exclusive licensing of Cyanogen OS. The court agreed, and now OnePlus is barred from selling, marketing, or even importing its devices in India. Additionally, the company is not permitted to ship any device in India that bears the Cyanogen logo or branding even after it gets the OS situation worked out.

As we recently discussed, OnePlus says it was only notified of the exclusive agreement between Micromax and Cyanogen two weeks before the OPO was to launch in India. It plans to have a custom ROM of its own ready by February, with a beta release sooner. However, the devices shipping in India right now still have CyanogenMod installed. They won’t get official support or updates, but apparently that’s not good enough for Micromax.

Dixons Carphone shines but we’re not taking the tablets >> London Evening Standard

Computer tablets have failed to capture the [UK] consumer’s imagination this Christmas — they were tipped to be the biggest festival seller but sales have actually fallen, according to the boss of Dixons Carphone.

Seb James, chief executive of the newly merged phone and electricals retailer, suggested most people already had one and a technology shift was needed before people buy new versions.

His comments come as the company, created from a merger of the Currys, PC World parent and Carphone Warehouse, reported its first set of half-year results since the deal this year.

Sales rose 5% to £5.02bn in the six months to beginning of November. However, the company made a £20m loss before tax, thanks to the £100m spent on the merger — lawyer and banker fees alone amounted to about £11m.

Wonder what form a “technology shift” would need to take to get people buying a new round of tablets.

Uber: Exec accessed reporter’s private trip info because she was late >> Naked Security

Lisa Vaas:

In a letter to Senator Al Franken, Uber says it accessed a reporter’s account because “She was 30 minutes late” to a meeting and an executive wanted to know when she’d show up so he could meet her in the lobby.

And flash his iPhone at her. And tell her that he was tracking her, according to a report from The Guardian.

In fact, Uber New York General Manager Josh Mohrer reportedly poked at BuzzFeed reporter Johana Bhuiyan’s personal data twice, on both occasions tracking her movements without her permission.

As an excuse, it’s lame. As a reason, it’s also lame. That hasn’t stopped Uber’s general counsel saying in the letter that it has a “strong culture of protecting [passenger] information.” Except when it doesn’t, clearly.

And as Franken pointed out in response, the letter doesn’t answer his questions – viz, what “legitimate” business purposes are for accessing customer data inside Uber.

Smartphone Comparison Chart >>Gnod

Interactive, and covering pretty much everything available in the US. Helpful if you are a specification freak; otherwise, more of a curio, though one on which you could waste an easy half an hour.

Shifting Freebase over to Wikidata >> Freebase on Google+

When we publicly launched Freebase back in 2007, we thought of it as a “Wikipedia for structured data.” So it shouldn’t be surprising that we’ve been closely watching the Wikimedia Foundation’s project Wikidata[1] since it launched about two years ago. We believe strongly in a robust community-driven effort to collect and curate structured knowledge about the world, but we now think we can serve that goal best by supporting Wikidata – they’re growing fast, have an active community, and are better-suited to lead an open collaborative knowledge base.

So we’ve decided to help transfer the data in Freebase to Wikidata, and in mid-2015 we’ll wind down the Freebase service as a standalone project. Freebase has also supported developer access to the data, so before we retire it, we’ll launch a new API for entity search powered by Google’s Knowledge Graph.

Google bought MetaWeb in 2010; this move, giving the responsibility to the crowd, suggests either that upkeep was too expensive, or that Google has found better ways to do it internally.

Start up: periodic Health, iPods not guilty, Xiaomi’s reprieve, Samsung’s pay plan, Sony’s TV squeeze, and more

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How self-tracking apps exclude women >> The Atlantic

Rose Eveleth:

[Menstruation-tracking site] Monthly Info was really designed for Rivers, but she added a user signup system mostly because it was easy. And people signed up. A lot of people. “It kind of took off on its own from there and grew to over 100,000 users,” she said. “There was apparently a need for something like this, because it didn’t take much energy to make or grow.” Now, there are hundreds of period-tracking apps on the market. Considering the gender imbalance in tech, it’s fair to guess most of them are made by men. Rivers joked that it’s not hard to spot a fertility-tracking app designed by a man. They focus on moods (men want to know when their girlfriends are going to be grouchy) and treat getting pregnant like a level in a video game. “It feels like the product is mansplaining your own body to you,” said Rivers, who is now an engineer working on other projects. “‘We men don’t like to be blindsided by your hormonal impulses so we need to track you, like you’re a parking meter.’”

Utterly brilliant article. To my great embarrassment, I’d never noticed that Apple’s Health app doesn’t include an option to record days when you menstruate – which for 50% of the population is a really big deal, and a significant omission. (And nobody pointed it out to me, until now.)

But as Eveleth shows, it’s a problem that’s common across the whole “tracking” field. (Also: 420 comments. None of the ones I scanned worth any of your time.)

Jury finds Apple not guilty of harming consumers in iTunes DRM case >> The Verge

An eight-person jury has decided that Apple is not on the hook for what could have been more than $1bn in a trial centering on extra security measures the company added to iTunes and iPods starting in 2006.

Delivering a unanimous verdict today, the group said Apple’s iTunes 7.0, released in the fall of 2006, was a “genuine product improvement,” meaning that new features (though importantly increased security) were good for consumers. Plaintiffs in the case unsuccessfully argued that those features not only thwarted competition, but also made Apple’s products less useful since customers could not as easily use purchased music or jukebox software from other companies with the iPod.

The decision means Apple did not violate antitrust laws, something that would have potentially led to damages of more than $1bn.

Plaintiff’s (singular) attorney planning an appeal. Here’s part of what his summing up against Apple said:

I’ve been trying to think of an analogy, and I’ve been living on Snickers bars for the past couple weeks. Now if the Snickers bar was bigger, or contained more chocolate, that would be better. But if that Snickers bar had a preservative in it that was toxic — that was lethal — that would not be an improved Snickers bar.

This probably had the effect of making the jury both hungry and unsure if he was all there.

Xiaomi’s India ban partially lifted >> Tech In Asia

Last week, Chinese phone maker Xiaomi was hit with a sales ban in India. Today, that has been partially lifted by the Delhi High Court, reports The Hindu.

Today’s ruling allows Xiaomi to sell only Qualcomm-powered smartphones in India, and only until January 8, 2015. This allows Xiaomi to sell three of the four models it had launched in India – the Redmi Note 4G, the Mi3, and the Redmi 1S. The MediaTek-powered Redmi Note remains fully banned.

This is a temporary reprieve for Xiaomi – its intellectual property battle in India is far from over. We’ve contacted Xiaomi to ask when its online sales will recommence (Update: No comment for now).

Google faces €15m fines over privacy breaches in Netherlands >> The Guardian

Chris Johnston:

The search company is failing to abide by the data protection act in the Netherlands by taking users’ private information such as browsing history and location data to target them with customised ads, according to the country’s Data Protection Authority (DPA).

The Dutch regulator has given Google until the end of February to change how it handles the data it collects from individual web users.

Google has also been under investigation in Britain, France, Germany, Italy and Spain for its handling of user data since introducing new company guidelines two years ago.

Jacob Kohnstamm, DPA chairman, said: “This has been ongoing since 2012 and we hope our patience will no longer be tested.”

Holland isn’t alone – other European countries are looking to fine Google over this. The amounts, though, are piddling compared to its profits.

Samsung in talks with LoopPay for wireless phone payments >> Re/code

Jason Del Rey:

Samsung has discussed a deal with a payments startup that would help the smartphone maker unveil a wireless mobile payments system in 2015 to rival Apple, according to multiple sources.

The technology would allow people with certain Samsung phones to pay in the vast majority of brick-and-mortar stores by waving their phones instead of swiping with a credit card or cash.

It is not yet clear if Samsung has reached a deal with the startup, Burlington, Mass.-based LoopPay. One source said the deal could still fall apart. A prototype of the payments system working on a Samsung phone has been created, the other source said…

…LoopPay’s technology can wirelessly transmit the same information stored on a debit or credit card’s magnetic stripe to a store’s checkout equipment without swiping a card.

1) It’s a copy of the credit/debit card details, so not as secure as Apple Pay (which sends a one-time encrypted version, aka “tokenisation”). LoopPay “hopes” to use tokenisation.

2) How long before Google shows up at Samsung’s door and tells it to quit harshing on Google Wallet’s mellow?

When does your OS run? >> Gustavo Duarte

Here’s a question: in the time it takes you to read this sentence, has your OS been running? Or was it only your browser? Or were they perhaps both idle, just waiting for you to do something already?

These questions are simple but they cut through the essence of how software works. To answer them accurately we need a good mental model of OS behavior, which in turn informs performance, security, and troubleshooting decisions. We’ll build such a model in this post series using Linux as the primary OS, with guest appearances by OS X and Windows. I’ll link to the Linux kernel sources for those who want to delve deeper.

The fundamental axiom here is that at any given moment, exactly one task is active on a CPU.

A good introduction for just what your computer is up to when you aren’t looking. Or are looking. Educational value: high.

Russia – heading for recession, mobile market will contract >> Counterpoint Technology Market Research

Peter Richardson:

The Russian mobile device market has held up surprisingly well in 2014. However device manufacturers, who have been swallowing price rises to a substantial degree so far, cannot hold out much longer. OEM’s supply chains are dollar denominated. We fully expect handset OEMs will start passing on the higher Ruble prices to their channels and likely to the end consumer. A device with an ex-factory price of $100 this time last year would have translated to 3300 Rubles. Today (16th December 2014), the same device costs over 7100 Rubles. Given how tight margins are, no OEM can swallow that rate of change.

Most consumers will tend, on average, to pay approximately the same amount when they change their mobile phone. Given the rapid advance in technology this means that someone upgrading after two years will be able to buy a substantially better product than the one they have been using. Displays, processors, memory size, camera sensors and other parts of the phones improve at greater or lesser speeds, but all do improve.

However for the Russian consumer in 2015, this will no longer hold true.

He forecasts a total market of about 40-44m devices in 2015, down from 51m or so in 2014. “Super-premium” products won’t be affected as much – the rich tend to stay rich (or are non-ruble-denominated, so they actually get richer).

Comments aren’t dead. They’re just broken. — Medium

Mat Yurow (of the New York Times’s audience development team):

Currently, comment threads do a lousy job of surfacing the best content — paving the way for vitriol to rise to the top. Again, much of this can be attributed to design.

As previously stated, comments about an article are typically aggregated in a single module at the bottom of the page. But what exactly is someone supposed to comment on at the bottom of the article? A specific passage, the article as a whole, the weather? Without any sort of direction, it’s easy to image how things can spiral out of control.

Conversation requires context. Context provides the connectivity and relevance that users have come to expect on the internet. In an era of algorithms, we are conditioned to expect a personalized and finely-curated experience across the web.

Medium’s method of putting “comments” out of sight beside the actual article is better, but still doesn’t answer the argument – which also arises – of how, exactly, comments are meant to feed into the story above/beside. Is the story meant to change because of the comments? What’s their purpose, other than to show that people have fingers and keyboards?

Sony’s TV business mends, but will it be enough? – WSJ

Eric Pfranner and Takashi Mochizuki:

In the third quarter of this year, Sony had an 8% share of TV revenue world-wide, well behind Samsung Electronics Co. at 27% and LG Electronics Inc., another South Korean manufacturer, at 15%, according to research firm DisplaySearch. Sony predicts sales in its home entertainment and sound segment, which includes TVs as well as hi-fi systems, DVD players and other audiovisual devices, will shrink to around ¥1.1trn ($9.2bn) in its fiscal year ending in March 2018. For the current year, the company is expecting segment sales to rise slightly to ¥1.2trn.

The TV unit will post a slim operating profit for this year, with the margin rising to between 2% and 4% by fiscal 2018, Sony forecasts.

Some analysts say that short of a 5% margin, it makes little sense for Sony to keep making TVs, and the company should focus instead on its more promising operations, including PlayStation videogames, smartphone camera sensors, movies and television programming.

The TV set business is so cut-throat that it’s incredible. Sony’s business, meanwhile, is suffering death by a thousand cuts: first the PC, then the TV, until it has just the Playstation, components and Sony Pictures Entertainment to bolster it. And the latter isn’t having a great time lately.

Start up: who knows what about you?, smartphone tracking, slim your iPhone photos!, Xiaomi’s razor margins, and more

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Amazon’s Echo is a good listener but a wretched assistant >> Gigaom

Stacey Higginbotham:

Never has the gap between a flawless technology experience and a closed ecosystem loomed as large as the gap between the Amazon Echo and the Ubi personal computer. While Amazon’s Echo works beautifully and is a gorgeous cylinder that is ready to hear and (attempt to) obey my every command from pretty much anywhere in the room, it fails because its abilities to connect with a variety of web services are very limited.

Meanwhile, the Ubi, a voice-activated computer that is older and, yes, much more painful to use, wants to do the same thing. Like a teenager, though, it isn’t adept at listening to my commands, sometimes awkwardly interrupting my conversations, and its music playback is not nearly as graceful as the Echo’s.

Pays money, takes choice (or don’t spend the money at all).

Android Vs. iOS start experience >> LukeW

Luke Wroblewski:

How times change… Today’s new iPad Air 2 experience consists of 23 or more steps and no less than three iCloud services (iCloud, iCloud Drive, & iCloud Keychain). In contrast, today’s new Android Nexus experience consists of only 8 steps but with a mandatory 234MB update (some things don’t change). Here’s both start experiences in detail.

You can argue this lots of ways. Apple offers TouchID, Apple Pay, Find My iPad, iMessage – and asks about using location services. Google stuffs many of those into a single screen. Wroblewski doesn’t give a “time taken” for the setup; that might be as useful.

People finding their ‘waze’ to once-hidden streets >> Associated Press

Great piece on a smartphone tragedy of the commons, by John Rogers:

Killeen said her four-mile commute to UCLA, where she teaches a public relations class, can take two hours during rush hour. “The streets on the west side are no longer a secret for locals, and people are angry,” she said.

That’s because the app can’t be outsmarted, Waze spokeswoman Julie Mossler said.

“With millions of users in LA, fake, coordinated traffic reports can’t come to fruition because they’ll be negated by the next 10 people that drive down the street passively using Waze,” she said.

Besides, Mossler added, “people are inherently good,” meaning most wouldn’t really screw with the app, no matter what they might say.

Indeed, of all the angry people interviewed for this story, none would admit doing so, although most said they heard someone else had.

One does have to wonder a little why Killeen doesn’t walk, cycle or get a motorbike for that four-mile commute.

It may be crushing Samsung in China, but Xiaomi barely makes a profit >> Forbes

Parmy Olson:

Chinese smartphone upstart Xiaomi, which this year grabbed Samsung’s No. 1 spot in China with its low-cost smartphones, revealed startlingly-low profits in a filing to the Shenzen stock exchange on Monday, Reuters reported.

The company earned $56m in net profit in 2013, on sales of $4.3bn. That’s an operating margin of just 1.8%, razor-thin when compared to Apple’s operating margin (which was 28.7% in 2013) or even Samsung’s (18.7%), which are being forced down by low-cost Indian and Chinese vendors like Xiaomi.

Eyebrows now raised at the WSJ report from earlier which said Xiaomi made a profit ten times that in 2012. Either the WSJ had the wool pulled, or Xiaomi is expanding dangerously fast. A spokesperson for Xiaomi said this “didn’t represent the whole company”, which somewhat contradicts its filing.

Sales of smartphones grew 20% in third quarter of 2014 >> Gartner

Lots to digest here (two months after the end of the third quarter): the continuing, rapid drop in featurephone sales, which particularly hurt Samsung; the growth of Huawei, ZTE and Xiaomi; that BlackBerry is still bumping along, managing 2.4m sales “to end users” in that period by Gartner’s numbers.

Boxed In >> Platformonomics

Charles Fitzgerald:

To own Box stock, you have to believe they will retain their customers for a really long time to pay back the acquisition costs and/or significantly increase their revenue per customer. It is hard to make this case and Box notably doesn’t make much of an effort.

How will Box extract significantly more revenue per customer? They have neither moat nor unique technology (unless you count their “which one of these things isn’t like the others” participation in the Linux Foundation’s Dronecode Project). They don’t have an operations at scale cost advantage. Their “platform ecosystem” is superficial at best. They face giant competitors like Apple, Google and Microsoft with untold billions in the bank who are happily giving cloud-based storage away as a complement to their other services, as well as Dropbox which continues to ooze into the enterprise with a bottoms-up strategy which has dramatically lower customer acquisition costs. Box is still doing the same thing it always has, even as the market has evolved. They no longer have the luxury of just highlighting SharePoint’s inadequacies. Some argue Microsoft’s refusal to support Android and iOS has been the singular Box value proposition – obviously, that is a window that has closed.

Fitzgerald isn’t an optimist on Box.

iCloud Photo Library beta FAQ >> Apple Support

Q :How does iCloud Photo Library save space on my device?

A: If you turn on Optimize [device] Storage, iCloud Photo Library will automatically manage the size of your library on your iOS device, so you can make the most of your device’s storage and access more photos than ever. iCloud Photo Library stores the original, high-resolution photos and videos in iCloud and can keep lightweight, device-optimized versions on each of your devices. As long as you have enough storage, recent photos and videos that you access the most will stay on your device at full resolution.

You can turn on Optimize [device] Storage from Settings > iCloud > Photos or Settings > Photos & Camera > iCloud Photo Library on your iPhone, iPad, or iPod touch. You need an Internet connection to access an original photo or video that’s stored only in iCloud.

As Mark Rogowsky points out, this is the way to free up space on iOS devices while also letting you see the photos you’ve taken.

Who’s Watching You?

You probably know that Google and Facebook are tracking you, but did you know your car is too? Take this test to find out how tracked you are.

Faintly depressing.

Start up: how much (little) ‘Happy’ earned on Pandora, Sony hack spills on, ‘inception’ mobile hack, QNX trumps Microsoft, and more

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Project Goliath: Inside Hollywood’s secret war against Google >> The Verge

What is “Goliath” and why are Hollywood’s most powerful lawyers working to kill it?

In dozens of recently leaked emails from the Sony hack, lawyers from the MPAA and six major studios talk about “Goliath” as their most powerful and politically relevant adversary in the fight against online piracy. They speak of “the problems created by Goliath,” and worry “what Goliath could do if it went on the attack.” Together they mount a multi-year effort to “respond to / rebut Goliath’s public advocacy” and “amplify negative Goliath news.” And while it’s hard to say for sure, significant evidence suggests that the studio efforts may be directed against Google.

The Sony hack is laying bare huge amounts of the entertainment industry’s thinking. Read on for more.

Nation-backed malware targets diplomats’ iPhones, Androids, and PCs >> Ars Technica

Researchers have uncovered yet another international espionage campaign that’s so sophisticated and comprehensive that it could only have been developed with the backing of a well resourced country.

Inception, as the malware is dubbed in a report published Tuesday by Blue Coat Labs, targets devices running Windows, Android, BlackBerry, and iOS, and uses free accounts on Swedish cloud service Cloudme to collect pilfered data. Malware infecting Android handsets records incoming and outgoing phone calls to MP4 sound files that are periodically uploaded to the attackers. The researchers also uncovered evidence of an MMS phishing campaign designed to work on at least 60 mobile networks in multiple countries in an attempt to infect targeted individuals.

“There clearly is a well-resourced and very professional organization behind Inception, with precise targets and intentions that could be widespread and harmful,” the Blue Coat report stated. “The complex attack framework shows signs of automation and seasoned programming, and the number of layers used to protect the payload of the attack and to obfuscate the identity of the attackers is extremely advanced, if not paranoid.”

Ford dumps Microsoft for BlackBerry infotainment system >> CNN

Ford is upgrading its infotainment system to make it more like a smartphone or tablet – and it is dumping its longtime software provider Microsoft as part of the change.

Instead, Ford (F) will use BlackBerry’s QNX operating system for the new Sync 3 infotainment system. Ford Sync allows drivers to navigate, listen to radio and music, make phone calls and control the car’s climate through touch or voice commands.

Among Sync 3’s improvements will be the ability to expand or shrink the display with pinch-to-zoom gestures. Customers will also be able to swipe the screen’s display, as they do on a smartphone or tablet.

Wonder if it’s anything to do with the glitches in MyTouch that surfaced in 2011, when it said it “will send memory sticks to 250,000 customers in the US offering a software upgrades for its glitch-prone MyFord Touch system, which replaces the standard dashboard knobs and buttons with a touchscreen.”

A win for BlackBerry’s QNX, though unlikely to be a dramatic money-earner for a while, if ever.

Pharrell made less than $3,000 from 43 million Pandora streams of “Happy” >> Fusion

Through the first three months of 2014, “Happy” was streamed 43m times on Pandora, while “All Of Me” was played 55 million times on the service.

But how much money did all those streams make for the artists involved in creating the tracks?

According to an email from Sony/ATV head Martin Bandier obtained by Digital Music News’ Paul Resnikoff, “Happy” brought in just $2,700 in publisher and songwriter royalties in the first quarter of this year, while “All Of Me” yielded just $3,400.

Windows Phone wobbles: why users are losing heart >> Tim Anderson’s ITWriting

Unlike Ed Bott and Tom Warren I still use a 1020 as my main phone. I like the platform and I like not taking a separate camera with me. It was great for taking snaps on holiday in Norway. But I cannot survive professionally with just Windows Phone. It seems now that a majority of gadgets I review come with a supporting app … for iOS or Android.

Microsoft is capable of making sense of Windows Phone, particularly in business, whether it can integrate with Office 365, Active Directory and Azure Active Directory. On the consumer side there is more that could be done to tie with Windows and Xbox. Microsoft is a software company and could do some great first party apps for the platform (where are they?).

The signs today though are not good. Since the acquisition we have had some mid-range device launches but little to excite. The sense now is that we are waiting for Windows 10 and Universal Apps (single projects that target both phone and full Windows) to bring it together. Windows 10 though: launch in the second half of 2015 is a long time to wait. If Windows Phone market share diminishes between then and now, there may not be much left to revive.

Windows 10 and unified development won’t be Windows Phone’s saviour; mobile apps aren’t shrunken mobile apps (just look at a desktop website shrunken down to a mobile screen to realise that).

And the very first comment is from someone who has given up on Windows Phone. These are not good signs.

With WebRTC, the Skype’s no longer the limit >> Reuters

WebRTC, a free browser-based technology, looks set to change the way we communicate and collaborate, up-ending telecoms firms, online chat services like Skype and WhatsApp and remote conferencing on WebEx.

Web Real-Time Communication is a proposed Internet standard that would make audio and video as seamless as browsing text and images is now. Installed as part of the browser, video chatting is just a click away – with no need to download an app or register for a service.

WebRTC allows anyone to embed real-time voice, data and video communications into browsers, programs – more or less anything with a chip inside. Already, you can use a WebRTC-compatible browser like Mozilla’s Firefox to start a video call just by sending someone a link.

A terrific desktop browser technology that feels like it’s five or six years too late in reaching a standard. Video calling is on mobiles now, in a variety of different (incompatible) protocols, some cross-platform, some not.

Furious Google ended MPAA anti-piracy cooperation >> TorrentFreak

The leaked emails reveal that Google responded furiously to the perceived slur [in a press release put out by the MPAA in reaction to Google’s press release about its changes to its algorithm].

“At the highest levels [Google are] extremely unhappy with our statement,” an email from the MPAA to the studios reads.

“[Google] conveyed that they feel as if they went above and beyond what the law requires; that they bent over backwards to give us a heads up and in return we put out a ‘snarky’ statement that gave them no credit for the positive direction.”

In response to the snub, Google pressed the ‘ignore’ button. A top executive at Google’s policy department told the MPAA that his company would no longer “speak or do business” with the movie group.

In future Google would speak with the studios directly, since “at least three” had already informed the search engine that they “were very happy about the new features.”

Tablet Ownership is Growing Faster than Ownership of Any Other Connected Device, According to The NPD Group

Tablet ownership among US consumers is on the rise, and growing at a faster rate than that of any other connected device. According to The NPD Group’s Connected Intelligence, Connected Home Report, as of the third quarter of 2014 (Q3 2014) there were 109m tablets in use, up 35m from last year.

“Now that the tablet market is unmistakably past the early adopter stage we are able to gain visibility into what the user base is still doing with their devices, and in this case it’s often video focused activities,” said John Buffone, executive director, Connected Intelligence.

More than half, 55%, of tablet users report leveraging a video feature of their device. This includes video calling; taking, posting, and uploading videos; as well as watching video from a streaming service or app from a TV channel or pay TV provider. Video feature usage is even more prominent among younger consumers. Two-thirds (67%) of tablet users aged 18-34 use these video features compared to 53% of 35-54 year olds, and 45% of users age 55 and older. Further, watching video from a streaming service or TV channel app is the most common video focused behaviour.

By contrast, there are 176m smartphones in use, for the same population. You wonder why tablet sales are slowing at the high end (Apple)? Because the high end is saturated, and tablets probably have a four-year, not two-year, replacement cycle.

And video usage is going to suck the life out of the networks.

Workflow for iOS aims to simplify automation of complex multi-step tasks >> Apple Insider

Examples of tasks that can be accomplished with Workflow, as noted by developer DeskConnect, include:

• Add a home screen icon that calls a loved one
•
Make PDFs from Safari or any other app
•
Get directions to the nearest coffee shop in one tap
•
Tweet the song you’re listening to
•
Get all of the images on a Web page
•
Send a message including the last screenshot you took

Once an automated task has been created within Workflow, users can launch them from within the app, or via other apps using a Workflow Action Extension, in addition to the aforementioned home screen shortcut.

There are location-aware actions, and you can create a homescreen shortcut to call someone (that was the first one I created). Wonder if this – with its capability of putting shortcuts on the homecreen – will fall foul of Apple’s hokey-cokey app store policies.

Google shuts down Russian engineering office >> The Information

Amir Efrati:

Google launched engineering operations in the country in 2006, and its programmers, including a top coder named Petr Mitrichev, work on Web-search quality, developer tools and the Chrome browser, among other projects. It has a sizable Moscow office. Sales operations are expected to continue in some form.

It’s unclear exactly why Google is making the move now, but it is likely related to the Russian government’s decision to require Web companies, starting in 2016, to keep data related to its citizens within Russia as opposed to data centers outside the country. There also was an alleged recent raid by authorities of a high-profile foreign e-commerce firm in Moscow that sent shockwaves throughout the tech community.

Google’s flight from Russia follows similar moves by other well-known firms including Adobe Systems. Western venture and private equity firms also have pulled back their activities in Russia.

I think Efrati had the scoop on this; the WSJ followed it up.