Monthly Archives: May 2016

Start up: Facebook v journalists, give me your email!, iPhone dips ahead, whose fault is Theranos?, and more

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Android Wear hasn’t been a hit, even among Android fans. Howcome? Photo of a Samsung Gear Live by pestoverde on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link. Try not to confuse it with today’s second link.

A selection of 12 links for you. Too soon? I’m charlesarthur on Twitter. Observations and links welcome.

Want to know what Facebook really thinks of journalists? Here’s what happened when it hired some » Gizmodo

Michael Nunez:

»if you really want to know what Facebook thinks of journalists and their craft, all you need to do is look at what happened when the company quietly assembled some to work on its secretive “trending news” project. The results aren’t pretty: According to five former members of Facebook’s trending news team—“news curators” as they’re known internally—Zuckerberg & Co. take a downright dim view of the industry and its talent. In interviews with Gizmodo, these former curators described grueling work conditions, humiliating treatment, and a secretive, imperious culture in which they were treated as disposable outsiders. After doing a tour in Facebook’s news trenches, almost all of them came to believe that they were there not to work, but to serve as training modules for Facebook’s algorithm.

«

Server farms, like humans, require temperature control, but they don’t demand free lunch. So in time any tech company will try to replace the latter with the former.
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I Want Your Email Address » Moneylab

»Can I have your email address? I’ll be here when you’re ready.

Give It To Me

Can I please have your email address before you go?

I’m trying to increase my subscriber rate by 600%, so you should be typing in your email address right about now.

«

This is brilliant. Scroll all the way through. Enjoy.
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Speaker maker Bowers & Wilkins sells out to a tiny Silicon Valley startup » Bloomberg

Joshua Brustein:

»Bowers & Wilkins’s most devoted customers will probably be skeptical about a Valley startup being the best steward for a fancy speaker brand. Audiophiles often turn their noses up at digital music companies, which have a reputation for sacrificing fidelity for convenience. “It will take some explaining,” said Atkins. “I think when the verdict comes back, it will be clear that this is exactly what Bowers & Wilkins should be doing.”

Atkins will become CEO of the combined company, and Yu will be executive chairman. They will drop the name Eva in favor of the much more familiar Bowers & Wilkins brand. Yu and Atkins said there will be no staff cuts, and the company will continue to sell the current lineup of Bowers & Wilkins products. Atkins, who owns 60% of Bowers & Wilkins, will take a significant ownership stake in the new company. Bowers & Wilkins’s outside investors, Caledonia Investments and Sofina, will cash out.

Yu has been a Silicon Valley dealmaker for years. He was chief financial officer at YouTube when Google bought the company for $1.65bn. At Facebook, he helped the social network raise money from Microsoft Corp. As a partner at Khosla Ventures, he was an early investor in Square Inc. He also owns part of the 49ers and championed the football team’s new stadium in the Valley.

Yu said his latest deal is a potential model for other well-funded startups. “I think there will be others to follow,” he said. “This is the way that Silicon Valley and other industrial companies raise the game for consumer-brand electronics.”

«

It’s certainly the only way to add value; simply being high-end hardware isn’t sufficient in any space now. You need software, and something special.
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TalkTalk to scrap separate line rental charge » TalkTalk Telecom Group PLC

»TalkTalk is leading the way in making broadband pricing simpler and more transparent by putting an end to separate line rental charges.

The UK’s fiercely competitive broadband market has been increasingly characterised by attention-grabbing broadband prices, underpinned by less prominent – and more costly – landline charges. Government, consumer groups and the Advertising Standards Authourity all agree that presenting landline and broadband costs separately adds unnecessary complexity and risks broadband deals appearing misleadingly cheap. However, TalkTalk is the only provider to have openly and consistently called for change.

Today, TalkTalk is going one step further by announcing that it is set to become the first major broadband provider to end the practice of separate pricing. TalkTalk will instead move toward a single monthly cost including line rental, known as ‘all-in pricing’, which will come into effect this autumn.

«

Good move, though it looks as though the regulator Ofcom will force this in time, so this is “we’re jumping before you push us”. The additional line rental cost has always been a bugbear in all the adverts for broadband services.
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Craig Wright is not Satoshi Nakamoto » New Web Order

Nik Cubrolovic with some interesting insight into Craig Wright’s business dealings:

»What Wright did was establish a company for the purpose of carrying out research and development on e-learning software it had acquired from Wrights own trust. Wright would inject $30 million in Bitcoin to fund the company, $29 million of which would be paid to Wright’s trust to acquire the software and $1 million of which would fund operational costs – including an office in Sydney and 40 employees.

The purpose for the structure and why someone could commit fraud in this way becomes clear in the next action the company takes:

»

Further to incurring a range of expenses, the Company lodged its GST return for the September 2013 quarter, claiming a GST refund of $3.1 million (“the GST refund”). After various discussions and correspondence, the ATO issued a notice to the Company on 20 January 2014 notifying that it intended to withhold the refund pending further verification of transactions and the treatment of Bitcoin.

«

The sales tax (GST) component of the $29 million invested by Wright into the company was eligible for a refund. Thus by shuffling around some Bitcoin between entities you control yourself, it is possible to trigger a sales tax refund (in real cash).

Another Wright entity, DeMorgan, made the largest ever R&D tax concession claim in Australia – as per their own press release. The R&D tax concession is a program in Australia where companies investing in R&D are eligible for a 45% tax refund on each dollar spent. We know now that the supercomputers that were claimed to be part of this spending didn’t exist, so it is possible that the refund was an attempt to make a false claim.

While it is still early in the investigations against Wright’s companies, one can come away from reading about his firms with the conclusion that their primary business was to seek tax refunds from the government, and that most of the businesses were set up precisely for this.

«

You have to admit that if it’s fraud, it’s rather clever. So why would Wright claim to be Nakamoto? Because it could help him raise some *real* money.
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Apple’s plan for refurbished iPhones in India faces opposition » Bloomberg

Saritha Rai:

»India has rejected Apple Inc.’s request to import and sell refurbished iPhones to the world’s second largest mobile population, a telecommunications ministry official said Tuesday.

The U.S. company’s application has been turned down, the official said, asking to not be identified, citing official policy. Apple has been seeking permission to import and sell used phones to court price-conscious consumers with a similar proposal rejected in 2015 by the environment ministry.

Apple declined to comment.

Apple’s rivals have mounted a public campaign against the effort, arguing that such a move would trigger a flood of used electronics while defeating the government’s Make-in-India program to encourage local manufacturing.

«

Oh, and they also didn’t like it because it would also allow Apple to sell more iPhones. Quite a blow for Apple. Speaking of which…
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iPhone warning signs » Above Avalon

Neil Cybart has substantially reduced his forecasts for how many iPhones will be sold over the next 18 months, citing a number of key shifts (such as China Mobile as a one-off, India not being China, and so on):

»When looking at all of these iPhone warning signs, it is becoming clear that Apple has a significant iPhone growth problem on its hands. The combination of a slowing iPhone upgrade rate and declining number of growth catalysts for expanding the iPhone’s addressable market will make it very difficult for management to report unit sales growth going forward given its current strategy. In addition, the iPhone SE highlights how any strategy to fix some of these issues will likely end up jeopardizing iPhone ASP and margin trends.

It is important to note that the iPhone business is not imploding. Satisfaction rates and loyalty trends remain industry-leading. Apple has a very attractive iPhone installed base numbering close to 550 million users with additional users purchasing an iPhone in the grey market. Each quarter, Apple is still bringing new people to the iOS ecosystem. Instead, it is becoming much more difficult for Apple to grow iPhone unit sales each year.

All of this seems a bit surreal. Apple just recorded its best quarter for iPhone sales in 1Q16. How can there now be so many iPhone warning signs only a few months after this milestone to the point that even Apple management was caught off guard?

The iPhone 6 and 6 Plus masked deteriorating iPhone trends. While those two iPhone models ushered in a wave of sales from both existing iPhone users and consumers new to iOS, upon closer examination the iPhone installed base had become much more diverse than first thought when it comes to thoughts on upgrading.

«

Bear in mind that Apple has been locked into two-year design cycles for the iPhone since 2008, meaning that even if there had been realisation in 2015 that everything would be different by now, there would be no way to stop it. The market has shifted, and it is extremely hard to see Apple ever returning to the record-setting numbers of the past.
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Rant: has Android Wear failed to make a case to normal users? » Android Police

David Ruddock:

»When someone asks me if they should buy an Android Wear device, I always answer with something along the lines of, “not if you actually expect to get your money’s worth.” The desirable smartwatches are all generally $250+, the cost of a decent entry-level smartphone these days. The inevitable next question is “what does it actually do better than a phone?” My stock response generally focuses on the ability to swipe away low-priority notifications without pulling out your phone, the ability to voice-dictate an SMS or text on major messaging platforms, media controls (when they work), track your steps, and the ability to perform simple voice commands or queries. And, of course, to look neat.

And the responses I receive each and every time? Either “but a smartphone already does that” or “but is it actually better at those things than my phone?” And the answer to the latter is plainly no. A phone allows you to type responses to messages. A phone allows you to see more text in a notification, or to expand it into the app full a complete view. A phone supports more voice commands and full web searches. A phone can track your steps. A phone – or often even your headphones – has media controls.

«

Quite a few of these criticisms are specific to Android Wear; reading the comments, people want to be able to use their Wear watches to do contactless payments too. The Apple Watch already does these things (including pay, steps and maps). But of course the Watch too has struggled so far to make progress beyond the early adopters.

Suspect there’s a big update, probably including payment, coming up for Wear at Google I/O. But will that really change anything? Android Wear still has fewer than 5m activations in more than 18 months. Apple has lapped it at least twice.
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The secret culprit in the Theranos mess » Vanity Fair

Nick Bilton says the tech press bears some of the responsibility for failing to ask tougher questions:

»When I’ve asked V.C.s why they didn’t pour millions of dollars into a company that appeared to be changing the world, I was told that it wasn’t for lack of trying on Holmes’s part. She met with most top venture firms. But when the V.C.s asked how the technology worked, I was told, Holmes replied that it was too secret to share, even to investors. When they asked if it had been peer-reviewed, she insisted once again it was too secret to share—even to other scientists.

Maybe the tech press should have chosen to do the same thing. If Holmes wouldn’t explain how the technology that they were writing about actually worked, the blogosphere shouldn’t have written about it in the first place.

Since Carreyrou’s initial story was published, Holmes has stopped doing her endless media and speaking tours, and is instead trying to save her company and, presumably, her job. She has even abandoned social media. Her last tweet is a relic from December, back when the director of stage content at TEDMED tweeted a link to a story about Theranos, and subsequently defended the company and its founder by noting that the “media is so quick to idolize and then tear down brilliant change-makers, esp women.” Holmes replied with a single, terse word: “humbled.”

«

“Investigate and deeply understand the technology” is not a compatible requirement of journalists who are also required to churn out a ton of posts per day. The WSJ investigation took months, and was sparked by an inside source – but the key method, of asking ex-employees and peers how it could work, is open to anyone.

The chin-stroking over “why didn’t the US tech sites get this?” is exactly the same as it was over the Snowden revelations, and has the same answer: it’s not what they’re incentivised to do, as Bilton points out.
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First Response’s Bluetooth pregnancy test is intriguing — and a privacy nightmare » The Verge

Ashley Carman:

»This is a list of the app’s permissions on Android, emphasis my own:

  • Device & app history – retrieve running apps
  • Identity – find accounts on the device
  • Calendar – read calendar events plus confidential information, add or modify calendar events, send email to guests without owners’ knowledge
  • Contacts – read your contacts, find accounts on the device
  • Phone – read phone status and identity, directly call phone numbers
  • Photos/Media/Files – modify or delete the contents of your USB storage, read the contents of your USB storage
  • Storage – modify or delete the contents of your USB storage, read the contents of your USB storage
  • Device ID & call information – read phone status and identity
  • Other – full license to interact across users, receive data from the internet, full network access, view network connections, pair with Bluetooth devices, access Bluetooth settings, prevent device from sleeping, use accounts on the device.

Church and Dwight also list a Privacy Policy for the app, which explicitly says in bold, “If you opt-in, we may share your Personal Information with third parties for third party marketing purposes.” Not only can the app call users’ contacts without their permission, search their device for social media accounts, and send emails to calendar event guests without permission, but it can also use all that data to create tailored ads.

«

The company told Carman: “Church & Dwight Co., Inc. puts users’ privacy first and works to ensure that the trust users place in our products is recognized and respected with the utmost discretion.”

Which notably isn’t “we would never send emails or messages to everyone without your permission saying HEY SHE’S PREGGERS!”
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Flaws in Samsung’s ‘smart’ home let hackers unlock doors and set off fire alarms » WIRED

Andy Greenberg:

»The security research community has been loudly warning for years that the so-called Internet of Things—and particularly networked home appliances—would introduce a deluge of new hackable vulnerabilities into everyday objects. Now one group of researchers at the University of Michigan and Microsoft have published what they call the first in-depth security analysis of one such “smart home” platform that allows anyone to control their home appliances from light bulbs to locks with a PC or smartphone. They discovered they could pull off disturbing tricks over the internet, from triggering a smoke detector at will to planting a “backdoor” PIN code in a digital lock that offers silent access to your home, all of which they plan to present at the IEEE Symposium on Security and Privacy later this month.

«

Feels like we’re roughly at the Windows95 level of device security, but with hackers working at the Windows 7 level.
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Nelly Furtado: ‘YouTube pays more than nothing. That doesn’t make it fair’ » The Guardian

Nelly Furtado:

»I was lucky enough to meet and open for Prince and see him live several times over the years. He stood for pure music and honouring music with proper reverence. Prince’s death reminds all of us artists to wake up and smell the coffee. As I sit here writing this, I am listening to Zayn Malik’s new album – absolutely transported by the freedom, beauty and universality in it – and I’m certain of the labour put into making it great. I am putting the finishing touches on my new album right now, and I won’t stop working on it until it feels complete, much like a cabinet maker or a window cleaner would. We are all “working” class. This work is valid and has value. I love YouTube, but I think it is underpaying and getting away with it. I know the truth hurts, but someone’s got to tell it.

1. YouTube needs to use its Content ID system in a more productive way. It is interesting to note that it is ultra-efficient at removing anything pornographic or beyond certain limits of taste. But it seems not so effective for artists’ music, publishers, and labels. Let’s not forget that YouTube is owned by a technology company with the ability and resources to solve the problem.

«

And she has more points. But principally, it’s that YouTube is getting away with murder.
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Errata, corrigenda and ai no corrida: Yesterday’s photo was by cjjgbella on Flickr.

Start up: Schrödinger’s Satoshi, the trouble with VC funding, stalking with Waze, dentists get malware, and more

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Would you put yourself in front of a rifle underwater?

You can sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link. So troubling

A selection of 10 links for you. Proceed in a westerly direction. I’m charlesarthur on Twitter. Observations and links welcome.

Craig Wright’s New Evidence That He Is Satoshi Nakamoto Is Worthless | Motherboard

Jordan PEarson and Lorenzo Francheschi-Bucchierai:

»While that [blogpost signature] looks legit, according to experts, the evidence Wright provided seems to actually be worthless. As it turns out, Wright simply reused an old signature from a bitcoin transaction performed in 2009 by Satoshi.

Dan Kaminsky, a well-known security researcher, wrote in a post debunking Wright’s alleged evidence that the whole thing is a scam. “Satoshi signed a transaction in 2009. Wright copied that specific signature and tried to pass it off as new,” he added on Twitter. “He’s lying. Full stop.”

Longtime bitcoin developers also pointed out that this signature could have been copied from a public source, and does not prove that Wright controls the associated addresses.

“It would be like if I was trying to prove that I was George Washington and to do that provided a photocopy of the constitution and said, look, I have George Washington’s signature,” Bitcoin developer Peter Todd said.

Todd added that someone contacted him by email two weeks ago, claiming to be Satoshi, and using the same signature trick as proof. He says he ignored the email.

«

In the space of a few hours this story went from “Bitcoin inventor found!” to “HOAAAAXX!”, leaving a lot of very puzzled citizens in the middle. The point about the “ignored email” could be key: if Wright, or someone, has been hawking this around, something is fishy.
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Physicist fires a gun at himself underwater to prove a point » Mashable

»

To demonstrate the difference between air and water resistance, Norweigan physicist Andreas Wahl decided to plonk himself in front of a submerged rifle and pull the trigger.

«

Fantastic. Turns out that if you search on Wahl’s name on YouTube, he’s done a ton of these sorts of experiments.

It does however show that Leonardo DiCaprio need not have been so worried when he jumped into that river while being pursued by rifle-wielding enemies in The Revenant. Bigger risk was hypothermia.

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Theranos and Elizabeth Holmes expose the perverse incentives at work in Silicon Valley » Quartz

Jay Edelson and Christopher Dore, of the law firm Edelson (which has taken class actions against a number of tech companies), argue that the VC model drives companies to ignore rules:

»Take Zynga, the gaming company responsible for Farmville, which has earned the moniker “Scamville” for its allegedly deceptive advertising. The co-founder of Zynga, Mark Pincus, famously said, “I knew I needed revenues…. Like I needed revenues now. So I funded the company myself but I did every horrible thing in the book … just to get revenues right away.” While Pincus, incredibly, made this statement in public, he expressed the private sentiment of countless entrepreneurs faced with the ticking of the VC clock. (Disclosure: our law firm, Edelson PC, has brought class-action lawsuits against Zynga and some of the other companies mentioned below, but not for the conduct discussed in this article.)

This is bad for investors, including venture investors who care just about growth. (Fraudulent companies are, at best, an unreliable source of revenue.) But the reckless pursuit of growth often comes at consumers’ expense as well. That’s because the way that companies grow rapidly is to expand their user bases by hook or by crook, in a process called “growth hacking.”

One of the most common examples of this involves “spam-viting,” or hijacking a consumer’s contact list to blast them with text messages or emails, knowingly in violation of various federal and state statutes. Companies spam-vite because it works. Sending millions of text messages or emails to consumers, dressed up as if they came from those consumers’ friends, is a viable, illegal way to grow a business quickly. LinkedIn, for example, settled a lawsuit for $13 million over its practice of repeatedly sending “add connections” emails to a new user’s entire email contact list. And TextMe, a text-based social network, generated its growth by sending a large volume of text messages to new user’s phone contacts, although it eventually won its legal battle with the Federal Communications Commission.

The pressure to growth-hack begets pressure to disregard the law, at least temporarily.

«

This is a terrific essay; you read it and think “wow, that’s so true”. The saying in Silicon Valley is “it’s better to ask forgiveness than ask permission”; it’s how so many of today’s giants got started – Google, YouTube, Uber and AirBnB being particular examples. All broke, or break, the rules in many ways regularly.
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Google and Microsoft have made a pact to protect surveillance capitalism » The Guardian

Julia Powles on the surprising (to many) decision by Microsoft to withdraw from antitrust complaints and lobbying against Google:

»Microsoft today is facing a very different business ecosystem to the one it dominated in the 1990s. It needs to adapt. And it appears to want to do so by positioning itself at the heart of what Satya Nadella describes as “systems of intelligence”.

Explaining this concept at Hannover Messe 2016, Nadella defined systems of intelligence as cloud-enabled digital feedback loops. They rely on the continuous flow of data from people, places and things, connected to a web of activity. And they promise unprecedented power to reason, predict and gain insight.

This is unbridled Big Data utopianism. And it is a vision that brings Microsoft squarely into Google territory. So maybe Microsoft is pulling out of regulatory battles because it doesn’t want to shoot itself in the foot. For emeritus Harvard Business School professor Shoshana Zuboff, this gets to the core of the Google-Microsoft deal.

Zuboff is a leading critic of what she calls “surveillance capitalism”, the monetization of free behavioral data acquired through surveillance and sold on to entities with an interest in your future behaviour. As she explained to the Guardian: “Google discovered surveillance capitalism. Microsoft has been late to this game, but it has now waded in. Viewed in this way, its agreement with Google is predictable and rational.”

«

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Are maps necessary? » ROUGH TYPE

Nick Carr, musing on Jason O’Beirne’s post (linked yesterday) about the changes in Google Maps over the years:

»O’Beirne is a bit mystified by the changes Google has wrought. He suspects that they were inspired by a decision to optimize Google Maps for smartphone displays. “Unfortunately,” he writes, “these ‘optimizations’ only served to exacerbate the longstanding imbalances [between levels of detail] already in the maps. As is often the case with cartography: less isn’t more. Less is just less. And that’s certainly the case here.”

I’m sure that’s true. Adapting to “mobile” is the bane of the modern interface designer. (And, you’ll note, the “cleaner” Google Map provides a lot of open space for future ad placements.) But, when it comes to maps, there’s something more profound going on than just the need to squeeze a map onto a tiny screen. Implicit in the Google changes is the obsolescence of the map as a navigational tool. Turn-by-turn directions and automated route selection mean that fewer and fewer people ever have to figure out how to get from one place to another or even to know where they are. As a navigation aid, the map is a vestigial organ. So why not get rid of the useful details and start to think of the map as merely a picture or an image, or a canvas for advertisements?

«

Carr has such a deliciously sardonic tone, yet deployed so sparingly and precisely, it’s shocking he isn’t British.
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Drake’s Spotify gamble is paying off: Views just made $8m in a day » Music Business Worldwide

Tim Ingham:

»On Friday (April 29), Beyonce’s Lemonade became the biggest album of the year so far in the US.

Within another 24 hours, Drake’s Views had surpassed Lemonade’s entire week-one album download figure, with around 600,000 sales.

Views is now easily on course to smash through a million North American sales before the weekend.

Drake and his team will have breathed a big sigh of relief at this news – early vindication for a digital strategy which was by no means a safe bet.

Aside from its status as one of the most eagerly anticipated records of the year, Views (previously ‘Views From The 6’), is a complete Apple exclusive.

In its first week, it’s available to stream on Apple Music and buy on iTunes, but not available anywhere else – including physical stores.

Significantly, fans can’t ‘un-bundle’ Views on iTunes, as they could with Beyonce’s Lemonade last week; they only have the option to buy it as one package, with the exception of recent singles One Dance and Hotline Bling.

Drake took a sizable risk with this approach.

«

Really interested by how some artists can still hit it out of the ground by going for the download-only/one-service-only approach, while others can’t. It’s not just about age, either.
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A poem about Silicon Valley, made up of Quora questions » Fusion

Jason Gilbert:

»Why do so many startups fail?
Why are all the hosts on CouchSurfing male?
Are we going to be tweeting for the rest of our lives?
Why do Silicon Valley billionaires choose average-looking wives?

What makes a startup ecosystem thrive?
What do people plan to do once they’re over 35?
Is an income of $160K enough to survive?
What kind of car does Mark Zuckerberg drive?

«

And there’s more. This is splendid.
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Dental Assn mails malware to members » Krebs on Security

Brian Krebs:

»The American Dental Association (ADA) says it may have inadvertently mailed malware-laced USB thumb drives to thousands of dental offices nationwide.

The problem first came to light in a post on the DSL Reports Security Forum. DSLR member “Mike” from Pittsburgh got curious about the integrity of a USB drive that the ADA mailed to members to share updated “dental procedure codes” — codes that dental offices use to track procedures for billing and insurance purposes…

«

It had a launcher which would take a PC to a site which would try to download malware; and few antivirus checkers would find it.

»

In response to questions from this author, the ADA said the USB media was manufactured in China by a subcontractor of an ADA vendor, and that some 37,000 of the devices have been distributed. The not-for-profit ADA is the nation’s largest dental association, with more than 159,000 members.

“Upon investigation, the ADA concluded that only a small percentage of the manufactured USB devices were infected,” the organization wrote in an emailed statement.

«

One should now routinely assume that anything involving (a) Flash (b) USB drives is potentially a malware route. Fortunately, both are avoidable in normal life.
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Yahoo’s $8bn black hole » Bloomberg Businessweek

Max Chafkin and Brian Womack:

»In some ways, [Yahoo CEO Marissa] Mayer’s strategy has worked. Yahoo’s apps have received stellar marks from both reviewers and users, and the company has created new lines of business that accounted for $390m in revenue last quarter. “Mavens as a revenue source didn’t exist at all in 2011 and was nascent in 2012,” Mayer said proudly on the February earnings call, using an acronym that stands for “mobile, video, native advertising, social.” Yahoo has more than 600 million mobile users, up from about 150 million before she took the job.

But those improvements are nowhere near big enough to turn the company around. “Marissa likes to present Mavens as though it should be compared to some nascent startup,” says SpringOwl’s Jackson. But startups, he points out, don’t begin with a billion users. “It’s as if Yahoo took an above-ground pool, dumped it into a bucket, and said, ‘Wow, we’re really filling up this bucket fast,’ ” he says.

And that traffic isn’t necessarily users delighting in Mayer’s new products and telling their friends; much of it comes from Yahoo paying ever-larger sums to other companies to direct their users to Yahoo’s sites and apps. It paid almost $900m in traffic acquisition fees in 2015, up from $200m in 2014. Predictably, Yahoo users are spending less and less time with its sites. A report by The Information, a tech news site, showed that as of early December, the average time spent on Yahoo properties had declined 32% for Yahoo Mail, 29% for the home page, and 20% for Tumblr over the previous 12 months.

«

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If you use Waze, hackers can stalk you » Fusion

Kashmir Hill:

»Last week, I tested the Waze vulnerability myself, to see how successfully the UC-Santa Barbara team could track me over a three-day period. I told them I’d be in Las Vegas and San Francisco, and where I was staying—the kind of information a snoopy stalker might know about someone he or she wanted to track. Then, their ghost army tried to keep tabs on where I went.

The researchers caught my movements on three occasions, including when I took a taxi to downtown Las Vegas for dinner:

And they caught me commuting to work on the bus in San Francisco. (Though they lost me when I went underground to take the subway.)

The security researchers were only able to track me while I was in a vehicle with Waze running in the foreground of my smartphone. Previously, they could track someone even if Waze was just running in the background of the phone. Waze, an Israeli start-up, was purchased by Google in 2013 for $1.1 billion. Zhao informed the security team at Google about the problem and made a version of the paper about their findings public last year. An update to the app in January of this year prevents it from broadcasting your location when the app is running in the background, an update that Waze described as an energy-saving feature. (So update your Waze app if you haven’t done so recently!)

«

The only way not to be trackable is to choose to be “invisible”. Or not to use Waze, of course. Once more, it’s a theoretical risk – you’d need clever, determined hackers to use it against you – but it also shows how much data these apps leak intentionally.
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Errata, corrigenda and ai no corrida: none notified.

Did you miss yesterday’s Start up: Overspill? Google’s health data grab, Intel’s mobile halt, satire wars, iPad Pro beats Surface Pro, and more.

Start up: Google’s health data grab, Intel’s mobile halt, satire wars, iPad Pro beats Surface Pro, and more

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The ex-chief of Microsoft Windows has bought one, and he reckons it’s important. And IDC reckoned it outsold the Surface in the 1Q. Photo by matsuyuki on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link.

A selection of 14 links for you. Yeah, I know, but I couldn’t stop. I’m charlesarthur on Twitter. Observations and links welcome.

How AI can predict heart failure before it’s diagnosed » NVIDIA Blog

»The last place you want to learn you have heart failure is where it often winds up being diagnosed: in the emergency room.

Researchers analyzing electronic health records are using  artificial intelligence and GPUs to get ahead of this curve. They’ve shown they can predict heart failure as much as nine months before doctors can now deliver the diagnosis.

A research team from Sutter Health, a Northern California not-for-profit health system, and the Georgia Institute of Technology, believe their method has the potential to reduce heart failure rates and possibly save lives.

“The earlier we can detect the disease, the more likely we can change health outcomes for people and improve their quality of life,” said Andy Schuetz, a senior data scientist at Sutter Health and an author of a paper describing one aspect of the research. “That’s what’s exciting to me – the potential to change the future.”

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Fascinating (though what do you do with the knowledge that you’re probably going to have heart failure in the next nine months? How specific is the diagnosis? The results haven’t yet been published).

Nvidia’s interest is because it builds the graphics processing units (GPUs) which turn out to be ideally suited for machine learning.
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Revealed: Google AI has access to huge haul of NHS patient data | New Scientist

Hal Hodson:

»It’s no secret that Google has broad ambitions in healthcare. But a document obtained by New Scientist reveals that the tech giant’s collaboration with the UK’s National Health Service goes far beyond what has been publicly announced.

The document – a data-sharing agreement between Google-owned artificial intelligence company DeepMind and the Royal Free NHS Trust – gives the clearest picture yet of what the company is doing and what sensitive data it now has access to.

The agreement gives DeepMind access to a wide range of healthcare data on the 1.6 million patients who pass through three London hospitals run by the Royal Free NHS Trust – Barnet, Chase Farm and the Royal Free – each year. This will include information about people who are HIV-positive, for instance, as well as details of drug overdoses and abortions. The agreement also includes access to patient data from the last five years…

…This is the first we’ve heard of DeepMind getting access to historical medical records, says Sam Smith, who runs health data privacy group MedConfidential. “This is not just about kidney function. They’re getting the full data.”

The agreement clearly states that Google cannot use the data in any other part of its business. The data itself will be stored in the UK by a third party contracted by Google, not in DeepMind’s offices. DeepMind is also obliged to delete its copy of the data when the agreement expires at the end of September 2017.

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From the document: “Data to be processed other than for the direct care of the patient must be pseudonymised in line with the NHS Act 2006″. (Emphasis in original.)
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The Internet of Things has a dirty little secret » Internet of Shit

»As the market eventually saturates and sales of internet-widgets top off, you can bet that everyone from the smallest to largest vendor will look to what’s next: the treasure trove that is everything it knows about you.

Many of the newest IoT devices are the types of household appliances you won’t replace for a decade. We’re talking about a thermostat, fridge, washing machine, kettle, TV or light — long term, there’s just no other way to be sustainable for the creators of these devices.

There is an alternative path that some could take: maybe Nest needs to increase its revenue, so it decides to charge a monthly subscription model for its thermostat. Now you need to pay $5 per month or it’ll lock you out.

The question then, is if you’d pay for it? Will you pay for a subscription for everything in your home?

Maybe: if the device comes for free, with that subscription, and guarantees your data will be kept private… but I suspect that many people prefer to own outright and simply won’t care about the privacy compromise.

The future of your most intimate data being sold to the highest bidder isn’t dystopian. It’s happening now.

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My tablet has stickers » Learning By Shipping on Medium

Steve Sinofsky (you know, the ex-Windows chief) has moved from a Surface Pro to an iPad Pro for his work:

»Every (single) time the discussion comes up about moving from a laptop/desktop (by this I mean an x86 Windows or Mac) to a tablet (by this I mean one running a mobile OS such as Android or iOS) there are at least several visceral reactions or assertions:

• Tablets are for media consumption and lightweight social.
• Efficiency requires keyboard, mouse, multiple monitors, and customizations and utilities that don’t exist on tablets.
• Work requires software tools that don’t/can’t exist on tablet.

Having debated this for 6+ years, now isn’t the time to win anyone over but allow me to share a perspective on each of these (some of which is also discussed in the podcast and detailed in the posts referenced above)…

…The fact that change takes time should not cause those of us that know the limitations of something new to dig our heels in. Importantly, if you are a maker then by definition you have to get ahead of the change or you will soon find yourself behind.

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He asks developers, in particular, to butt out of the “but tablets can’t..” discussion.
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The death of Intel’s Atom casts a dark shadow over the rumored Surface Phone » PCWorld

Mark Hachman:

»Intel’s plans to discontinue its Atom chips for phones and some tablets may not have killed the dream of a Microsoft Surface phone—just the piece of it that made it so enticing.

In the wake of a restructuring that relegated the PC to just another connected device, Intel confirmed Friday that it has cancelled its upcoming SoFIA and Broxton chips. That leaves Intel with just one Atom chip, Apollo Lake, which it had slated for convertible tablets.

Microsoft has never formally commented on its future phone plans, save for a leaked email that suggests that Microsoft is committed to the Windows 10 Mobile platform and phones running ARM processors. But fans of the platform have long hoped for a phone that could run native Win32 legacy apps as well as the new UWP platform that Microsoft has made a central platform of Windows 10. The assumption was that this would require a phone running on an Intel Atom processor. Intel’s decision eliminates that option.

Unless Microsoft has some other trick up its sleeve, the most compelling justification for a Win32-based Surface phone appears to have died.«

Kinda big for Intel too; giving up on its mobile ambitions into which it has sunk billions. And for Acer and Lenovo, which has relied on Intel chips (and subsidies) for its mobile effort.
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What Happened to Google Maps? » Justin O’Beirne

Engrossing look at how Google Maps represents its content, and how it has changed:

»Let’s take a closer look at a couple of areas within the Bay Area.

First, the Pittsburg / Antioch area:

2010 – Cities, but No Roads. Pittsburg and Antioch are shown — but how to get there? No roads are shown that go to Pittsburg and Antioch.

2016 – Roads, but No Cities. Roads leading to Pittsburg and Antioch are shown — but Pittsburg and Antioch aren’t labeled. Why travel on those roads? Where do they go?

On the 2010 map, Pittsburg and Antioch are what cartographers call “Orphan Cities”. That is, they’re cities that lack connections to the rest of the road network.

A similar situation exists with Santa Cruz:

2010 – Santa Cruz, but No Roads. Santa Cruz is shown, but it’s orphaned (i.e., there are no roads going to it).

2016 – Roads, but No Santa Cruz. Four different roads leading into Santa Cruz are shown — but Santa Cruz isn’t.

On either map, it’s not immediately clear how to travel between San Francisco (or any other Bay Area city) and Santa Cruz.

See the problem?

Both maps, the one from 2010 and the one from 2016, have a similar issue: a lack of balance.

«

Would love to see a similar treatment for Apple Maps.
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Google faces first EU fine in 2016 with no deal on cards: sources » Reuters

Foo Yun Chee:

»Google is likely to face its first European Union antitrust sanction this year, with little prospect of it settling a test case with the bloc’s regulator over its shopping service, people familiar with the matter said.

There are few incentives left for either party to reach a deal in a six-year dispute that could set a precedent for Google searches for hotels, flights and other services and tests regulators’ ability to ensure diversity on the Web.

Alphabet Inc’s Google, which was hit by a second EU antitrust charge this month for using its dominant Android mobile operating system to squeeze out rivals, shows little sign of backing down after years of wrangling with European authorities.

Several people familiar with the matter said they believe that after three failed compromise attempts since 2010, Google has no plan to try to settle allegations that its Web search results favor its own shopping service, unless the EU watchdog changes its stance.

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The fines could be very big, up to 10% of global revenues – or just a slap on the wrist. How does Margrethe Vestager determine how big to make them?
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Journalism professor will go to war for free speech, as long as it doesn’t mock him » Gawker

JK Trotter:

»the ever-present possibility that certain people might mistake a satire for reality is the very thing that makes satire funny. As Ken White, [a] First Amendment lawyer, observed, “The joke is not only at the expense of Jeff Jarvis. The joke is, in part, at the expense of people who read carelessly.”

Esquire, of all magazines, should know this. It frequently traffics in satirical articles, and was even sued a few years ago over a piece mocking the notorious birther Joseph Farah. (The magazine fought the lawsuit, and won.) So it is particularly remarkable that the magazine’s executives, in complying with Jarvis’s demands, have effectively endorsed his misunderstanding of satire. It is far more hypocritical and troubling, however, that a person of Jarvis’s position and influence would ever demand the piece’s removal in the first place.

Jarvis is a public figure who has built his reputation in part on his aggressive advocacy for journalists’ First Amendment rights, as well as his strong belief that a culture of free speech is a necessary component of any functioning political system.

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This is a terrific essay by Trotter, and it does point up the essential contradiction of someone who (among other things) insists that Google’s search results should be sacrosanct against “a European court’s insane and dangerous ruling [to] allow people to demand that links to content they don’t like about themselves be taken down” demanding that content they don’t like not about themselves be taken down.
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Apple beats Microsoft at their own game while Amazon primes the low end of the tablet market » IDC

»Slate tablets continued their decline while still accounting for 87.6% of all shipments. More importantly, the slate tablet segment has become synonymous with the low-end of the market. While this may bode well for vendors like Amazon that rely on hardware sales to increase their ecosystem size, it has not helped vendors who rely solely on greater margins for hardware sales. Meanwhile, detachables experienced triple-digit year-over-year growth on shipments of more than 4.9m units, an all-time high in the first quarter of a calendar year.

“Microsoft arguably created the market for detachable tablets with the launch of their Surface line of products,” said Jitesh Ubrani, senior research analyst with IDC’s Worldwide Quarterly Mobile Device Trackers. “With the PC industry in decline, the detachable market stands to benefit as consumers and enterprises seek to replace their aging PCs with detachables. Apple’s recent foray into this segment has garnered them an impressive lead in the short term, although continued long-term success may prove challenging as a higher entry price point staves off consumers and iOS has yet to prove its enterprise-readiness, leaving plenty of room for Microsoft and their hardware partners to reestablish themselves.”

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The suggestion is that Apple sold more than 2m large iPad Pros (the 9.7in iPad Pro wasn’t released until the end of the quarter) and Microsoft fewer than 2m Surface Pros. And also that there’s no profit left in the low-end “slate” tablet market, if there was any before.
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The end of a mobile wave » Benedict Evans

Evans notes that we’ve hit the end of the “which ecosystem will win?” (answer: both) challenge, and now we have a free-for all among Android/AOSP offerings:

»coming from the other end of the spectrum, mobile operators are increasing buying in a selection of low-end smartphones than they sell (generally unsubsidised on prepay) under their own brand. Sometimes these have operator apps preloaded (if they’ve not given up on that yet), sometimes not. One could argue that the value being added here is really only distribution, and so one might see other companies with distribution getting into this, such as mass-market retailers. Some of these have already experimented with Android tablets, with mixed results (as of course they did with MVNOs).

This is all rather like the PC clone market of the 1980s – hundreds of undifferentiated companies fighting it out to sell commodity computers built with commodity components running a commodity operating system (though those companies mainly made the PCs themselves, where many phone brands do not). That world in due course led to companies like Dell – people who embraced the volume, low-margin commodity model and found an angle of their own. We’re starting to see equivalent model-creation now.

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YouTube: ‘No other platform gives as much money back to creators’ » The Guardian

Christophe Müller of Youtube:

»Just this month, a funny video of a Ben Affleck interview helped propel Simon and Garfunkel’s The Sound of Silence to the Top 10 Hot Rock Songs chart 50 years after it was released.

All of this is possible because our technology, Content ID, automates rights management. Only 0.5% of all music claims are issued manually; we handle the remaining 99.5% with 99.7% accuracy. And today, fan-uploaded content accounts for roughly 50% of the music industry’s revenue from YouTube.

The next claim we hear is that we underpay compared to subscription services such as Spotify. But that argument confuses two different services: music subscriptions that cost £10 a month versus ad-supported music videos. It’s like comparing what a black cab driver earns from fares to what they earn showing ads in their taxi.

So let’s try a fair comparison, one between YouTube and radio.

«

It’s all radio’s fault!
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How to use Workflow for iOS when you don’t know where to start » iMore

Federico Viticci:

»Workflow is the most powerful app on my iPhone and iPad. I wouldn’t be able to work without it, and, almost two years after its release, I’m still discovering its infinite potential.

Whether it’s sending a message to a group of people or organizing documents, you’ve likely come across a task on your iPhone or iPad that you’d like to speed up. Our iOS devices have evolved into powerful modern computers, but there are still some areas where we can be slowed down by app limitations, or, more simply, by the tedious process of performing the same task over and over.

Thankfully, we have a solution to this: automation. And when it comes to automating tasks on iOS, Workflow is the undisputed king. Learning to master Workflow is the first step to living an efficient, productive life on iOS, and it’s how I’ve been working on my iPad for years now.

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Viticci isn’t just saying that; he runs macstories.net, and he really does use his iPad for absolutely everything except podcasting. I’ve had Workflow for ages, but struggled with its lack of declarative structure; Viticci’s explanation is great. (It would be great to be able to simulate Workflow tasks on OSX and then export them to iOS.)
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No time to panic as one quarter shows minor dip in smartphone sales » Communities Dominate Brands

Tomi Ahonen on why talk of “peak smartphone” after stalled growth in Q1 is wrong, wrong, wrong:

»it is a superficial view of the industry without understanding two aspects of it. The first was the pent-up demand of the 6 series of iPhone that created a one-off surge of phablet-screen-size iPhone sales – last year. Because iPhone owners had seen rival smartphones issue phablets for years, they waited and finally when Apple did the iPhone 6 and 6+ that created a one-time surge in iPhone sales pushing Apple in 2014 Q4 Christmas sales and 2015 Q1 January-March sales of the total smartphone market to an exceptionally high level. It was a surge, a peak in iPhone sales which is not normal (there is a normal level of iPhone jump in sales any other year at that time).

That means, that last year Q1, January-March 2015, was at an artificially high level – see how much higher Apple’s iPhone market share was Q1 of last year (was 16% in Q1 of 2014, surged to 18% in 2015 and returned to 15% now). That was not normal market wars where one brand gains and another loses. It was Apple loyalists buying the long-awaited phablet-screen size iPhone 6 and 6+ which created that surge. Because of Q1 of last year being so high, thus the normal [sequential from Q4] decline of Q1 meant, that it now produced that one-off dip in the Year-on-Year smartphone market size. Also note, that ‘loss’ of 2% now is exactly the rise of 2% that Apple gained for 2015 that same quarter, when their phablet surge happened.

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Yup, that makes perfect sense. China stuttered, as did the US and Europe, but smartphones replacing featurephones is a train running down a hill. (Side note: I’ve replaced the words that Ahonen put IN CAPITALS with lowercase, as it makes no difference to the sense, and a lot to whether he’s YELLING in your EAR.)
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LG Electronics profit growth powered by TV business » WSJ

Min-Jeong Lee:

»LG executives are banking on a turnaround at the company’s mobile business after three straight quarters of operating losses, spurred by sales of its new G5 smartphone.

LG introduced the G5 phone, which comes with a modular body that allows users to easily swap in accessories, to a warm reception in February, fueling expectations the new smartphone will be a hit.

LG expects to ship three million units of the G5 in the second quarter. Executives say the phone is on track to outpace the G3 model, released two years ago, which has been one of the company’s best-sellers. LG has shipped 1.6 million units of the G5, compared with 900,000 units during the first month of the G3’s release.

But the new phone comes at one of the toughest times in the smartphone market, which is facing waning global demand. Total smartphone shipments fell 3% to 335 million units in the first quarter from a year ago, which was the first ever decline in shipments since the advent of smartphones, research firm Strategy Analytics said Thursday.

“There’s no promise the [strong] profits will stay where they are given the dent in overall demand and stiff competition,” Greg Roh, an analyst with HMC Investment Securities in Seoul, said in a recent note to clients.

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LG executives have been banking on a turnaround at the company’s mobile business for ages. It keeps not happening. Shipments, of course, aren’t the same as sales. And LG’s mobile business has actually made a loss for four straight quarters, not three.
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Errata, corrigenda and ai no corrida: none notified.