Start up: Tim Cook’s stock question, Samsung’s pen trouble, bending the iPhone 6S, and more


Yeah, Sanford Wallace probably preceded you here. Photo by epSos.de on Flickr.

A selection of 10 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Apple CEO Tim Cook got 280,000 Apple shares the day of the market rout » Fortune

Philip Elmer DeWitt:

By coincidence or design, Tim Cook was scheduled to receive a boatload of Apple stock the same day he stopped a market rout.

Apple disputes it, but the note Tim Cook sent CNBC’s Jim Cramer Monday, could, in theory, have personally saved him millions of dollars in unvested Apple shares.

Here’s the background.

In August 2011, when Tim Cook was tapped to replace the ailing Steve Jobs, Apple’s board of directors awarded him 1 million restricted stock units (RSUs), half to vest in five years, the rest in 10. At the time they were awarded, the shares were worth $323 million.

At Cook’s request, the terms by which those shares are distributed were changed two years later; the shares now vest on a yearly basis by a complicated formula that includes a performance incentive tied to the company’s performance.

It’s complicated. Cook had better have got that email read by a lawyer before he hit send (some time between 0500 and 0600 – by which time he’d have been up for a couple of hours already). Else things could get ugly. Credit to Daniel Tello who first brought this up.

Update: Tello says that “the latest info on [the] Cook stock reveals he actually picked the only day he could NOT benefit, instead makes a rebound worse for him.” Storm over, looks like. (Though there will doubtless be some more back and forth over revealing details about mid-quarter performance to a journalist who also holds some stock.)

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Facebook ‘Spam King’ guilty for sending 27 million messages » Bloomberg Business

Joel Rosenblatt:

A Las Vegas man pleaded guilty to sending more than 27 million unsolicited messages through Facebook Inc. servers after gaining access to about 500,000 accounts on the social network, according to prosecutors.

Sanford Wallace, 47, known as the “Spam King,” admitted to his mass spamming in 2008 and 2009 while pleading guilty Monday to fraud and criminal contempt, San Francisco U.S. Attorney Melinda Haag said in a statement.

Oh, but that’s not nearly enough context. Sanford Wallace has been a spammer for absolutely ages; he goes back to the neolithic age of the web. Read the Wikipedia entry. And reflect: once a spammer, always a spammer.
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Meet Wileyfox, an ‘edgy’ new mobile brand powered by Cyanogen » CNET

Rich Trenholm:

Among the new features offered by Cyanogen are security features that will appeal to consumers worried about their privacy. The unlock screen can scramble the numbers to make it harder for snoops to spy on your PIN. And if you’re alarmed by apps like Spotify that ask for access to unexpected parts of your phone, you can turn on and off individual app permissions. So for example, you can permit an app access to your camera but not your contacts, or require the app to ask each time it wants to use a different part of your phone. It also shows you the last time an app dipped into the further reaches of your phone, which is bound to be an eye-opening experience.

As a new brand, the company needs to carve attention from phone fans. “It’s an edgy brand,” says industry analyst Ben Wood of CCS Insight, “but it needs to be so it whips up a frenzy of social media interest. That’s the lifeblood for brands like this.”

Pretty standard phone (though it has dual SIM – unusual in western Europe). Cyanogen makes it more unusual: it’s not clear from the screenshots whether this is running Google Mobile Services (GMS) or not. Seems not, to my eye (but take a look for yourself).
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Nigerian network operators deactivate 10.7m SIM cards » Techpoint Nigeria

Yemi Johnson:

Dr. Tony Ojobo, Director of Public Affairs, NCC, speaking yesterday on Channels TV about the current SIM card deactivation being witnessed by network subscribers across the country said that about 10.7 million lines in the country have been barred from all GSM networks by the operators.

According to Ojobo, the commission had returned 18.6 million SIM cards data to MTN; 7.4 million to Airtel; 2.2 million to Globacom and 10.4 million to Etisalat for corrections back in September 2014, stressing that the returned SIM cards had one challenge or the other, including some that were pre-registered and others without the required biometric information. Yet, the Telcos failed to respond to the NCC’s warning to get those lines properly registered, even in ensuing meetings until now.

The call to deactivate unregistered lines however, came from the NCC, after its meeting with the office of the National Security Adviser (NSA), Department of State Security (DSS), the network operators. The parties present at the meeting had pointed attention to crimes committed in the country via unregistered telephone lines across various networks.

Odd: is this to do with Boko Haram, or something else?
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Aluminum and strength » All this

Dr Drang watches a video in which “Lew” tries to bend what seems to be the new iPhone 6S case, and then has it analysed by professionals:

While it’s obvious that zinc is the primary alloying element, which means the alloy is in the 7xxx series, the software didn’t find a good match in its database. Lew didn’t say anything about this in the video, but you can see it in the area I’ve circled at the top of the report.

I did a little looking around in my aluminum references, and I didn’t find a match, either. What’s weird is the tungsten (W) at 0.106%. I don’t have any aluminum specifications that call for tungsten, and in the 7xxx specs I’ve seen, “other” elements are limited to 0.05%.

In the video, Lew finesses this unknown by calling the new material “7000 series,” which is certainly true, but it’s not the whole truth. To me, the fact that the aluminum in the new shell doesn’t meet a standard specification is one of the most interesting findings. It suggests that Apple has developed its own proprietary aluminum alloy.

It wouldn’t be the first time Apple’s done this. The Apple Watch Sport uses a proprietary 7xxx alloy, which is mentioned on both the “Craftsmanship” page and in Jony Ive’s “Aluminium” video, which is where I got that splashy image.

The natural question is “Is this new iPhone aluminum alloy the same as the Apple Watch Sport alloy, or was it developed specifically for the iPhone?” Since I haven’t seen the chemistry of the Sport alloy, I have no idea what the answer is.

Is there any other company for which you’d get a lab involved for a leak of a shell of a phone? (That said, this stuff is so educational. Do read on for what he says about the difference heat treatment makes to aluminium strength.)
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Mobile ads: Media companies are losing the battle » Fortune

Mathew Ingram:

Is piggy-backing on Facebook’s platform the only way publishers can make mobile work? Perhaps. Entering into that kind of relationship also involves a significant transfer of power from the media outlet to the giant social network, something that has long-term risks. But for most publishers—and even for the New York Times—subscriptions aren’t generating enough revenue, and few people are paying for their apps.

For many companies that are watching the mobile chasm grow ever larger, in other words, there may be no other option. Their revenues are already so anemic that they can’t afford to build or buy anything that is going to move the needle. They can either play ball with Facebook and hope that will get them where they need to be, or they can stay on the sidelines and ultimately fade away.

The next year or two is going to be truly fascinating. Possibly ugly too.
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Reluctant licence fee payers don’t like life without the BBC after all » The Guardian

Roy Greenslade:

What would it be like to live without the BBC? How would people react to losing the chance to see the corporation’s TV channels, hear its radio programming or access its online output?

The BBC commissioned research to find out how people might cope (or not cope) without the broadcaster. So 70 families in 15 locations across the UK agreed to the blocking of all BBC services for nine days. Of those, 48 had previously said they were either in favour of not paying the £145.50 [US$227] annual licence fee (and doing without the BBC) or paying only a reduced fee.

According to the study, carried out on the BBC’s behalf by research agency MTM, by the end of the period of deprivation two thirds had changed their minds.

Those nine days “saved” them £3.60 (US$5.63). The BBC is a bloody bargain – especially after you get exposed to the repeatedly fresh hell that is US TV, which has the attention span of a gnat. (There are no ad breaks on the BBC.) As with mobile phones and medical bills, the US doesn’t know how badly off it is when it comes to TV in comparison to the UK.
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I Don’t Own, I Uber » Medium

Megan Quinn:

the move [from San Francisco to London, UK] meant [the car] had to go, and so it was sold for next-to-nothing to a really nice dad with two kids.

While I may have been sad to see my car go, I wasn’t concerned about being car-less because — when not on strike — public transportation is pretty good in Europe, and Uber is nearly ubiquitous in major cities. I knew Uber was more expensive in London, but everything was more expensive in London and I had factored that into my decision to move in the first place.

What I didn’t expect was that depending on Uber (UberX specifically) would actually be cheaper than owning and driving a car. Much cheaper. Yes, the company says this, but I didn’t think it was realistic yet.

Well, it is. At least for me.

About half the price, even allowing for the fact that petrol costs virtually nothing in the US compared to the UK. And that’s before amortisation of the car’s value. Mark this: it’s significant.
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Probable Note 5 design flaw can cause S Pen to break pen detection when inserted backward, or get hopelessly stuck » Android Police

David Ruddock:

On the Note 5, inserting the S Pen the wrong way provides exactly as much resistance as inserting it the right way. Which is to say: basically none at all. Once you insert the pen far enough in the wrong direction (again, which causes no strange resistance or feel than putting it in the right way), it will get stuck. It doesn’t even have to “click” in. At this point, of course, you will panic. And you will try to get it out – and most likely, you’ll succeed. The problem is that if you do succeed, there’s a very real possibility you’ll break whatever mechanism the device uses to detect whether the pen is attached or detached from the phone. Which is exactly what happened to our review unit.

Yes, seriously. Watch the video.

We’re really not sure how this made it past testing at Samsung – it seems like such an obvious thing to design into the S Pen slot, especially when Samsung has full reason to know that inserting the pen the wrong way can damage the direction-sensitive detection mechanism in the slot.

Android Police was the site that discovered this flaw (not “probable flaw” – it is, no question; and Ruddock does call it that in the comments.) It’s really quite a doozy. (“Antennagate” was easily solved with a bumper, and “Bendgate” seems to have been more about care of larger phones than anything.) Samsung’s response, reported by The Verge: “We highly recommend our Galaxy Note5 users follow the instructions in the user guide to ensure they do not experience such an unexpected scenario caused by reinserting the S pen in the other way around.” Recommendations don’t come much higher.
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A week without the Apple Watch » waitingtoDOWNLOAD

Lee Peterson survived:

I’ve missed notifications, workout tracking and the ability to control what’s playing on my iPhone the most – I miss the connivence of it.  Could I do without it, well yes and no – I mean yes I can live without it but now it’s opened up a whole new world I don’t think I could go without it.  It’s kept me in the moment more, stopped me from checking social media so much and for the first time I’m able to see how active (or inactive) I am allowing me to do something about it.

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Start up: Samsung’s missing numbers, Lizard Squad hacker convicted (but..), transparent aluminium!, and more


The internet of things, old style. Photo by Leo Reynolds on Flickr.

A selection of 9 links for you. Gawp at them. I’m charlesarthur on Twitter. Observations and links welcome.

Optically clear aluminium provides bulletproof protection » Total Security Solutions

While the U.S. Navy is busy with the development of a new bulletproof material called Spinel, Surmet Corporation is already commercially producing its own version called ALON®. Technically known as aluminium oxynitride, Star Trek fans may be more familiar with the term “transparent aluminium” first proposed by Scotty in the 1986 movie, Star Trek IV: The Voyage Home. While ALON isn’t quite what Scotty had in mind (it’s not truly a transparent metallic aluminium, but rather a transparent aluminium-based ceramic), it’s pretty darn close.

transparent aluminium Bloody hell, it is too. If this isn’t a con, it’s amazing. (And it’s aluminIum, dammit.)


Lizard Squad hacker convicted on 50,000 hacking charges » Daily Dot

William Turton:

Julius “zeekill” Kivimaki, 17, was sentenced to a two-year suspended prison sentence and was “ordered to fight against cybercrime” according to Finnish media. The charges against Kivimaki include data breaches, felony payment fraud, telecommunication harassments, and other counts relate to fraud and violations of company secrets. Neither the Ministry of the Interior, Police Department of Finland, nor the District Court of Espoo, the court presiding over Kivimaki’s case, were available for comment in time for publication due to time differences.

Kivimaki helped lead massive distributed-denial-of-service (DDoS) attacks on Microsoft’s Xbox Live and Sony’s Playstation Network over last year’s winter holidays, making international headlines. Kivimaki appeared on camera during an interview with U.K. television station Sky News. Blair Strater, a victim of Kivimaki’s repeated harassment, was “absolutely disgusted” by the ruling, he told the Daily Dot in a phone interview, because he felt the sentence was too light. Kivimaki has, according to Strater, repeatedly called in fake threats to American law enforcement, resulting SWAT teams arriving at the Strater residence, a practice commonly known as “swatting.” For three years, Kivimaki has harassed the Strater family by stealing their identities and wreaking havoc on their finances and personal lives, Strater said.

Doubt he would have got that little in the US, despite his age.


Television is no longer the screen of choice for kids » Advertising Age

Anthony Crupi:

Mobile devices are so popular with kids that nearly half of the 800 parents quizzed by Miner & Co. reported that they confiscate their kids’ tablets when they act up and make them watch TV instead, thereby fostering a sort of Pavlovian response that equates TV with punishment. (That these parents simply don’t restrict their kids’ access to video altogether when they misbehave suggests that they’re raising a generation of spoiled content junkies, but that’s another story.).

“Go to your room and watch TV!”


The anxious ease of Apple Music » The New Yorker

Alex Ross:

So, contrary to plan, Apple has not necessarily succeeded in making music better. Then again, it might not be doing long-term damage; indeed, it might not be having much effect at all. The musicologist Deirdre Loughridge recently published a blog post about the history of music-subscription services, which date back to sheet-music lending libraries in the 18th century.

By the 1830s, pundits were fretting that such libraries were undercutting the economics of the music business and altering the nature of listening. “One enjoys superficially, one always wants something new,” a critic groused in the Allgemeine musikalische Zeitung. A few decades later, a piano teacher wrote, “Music lending libraries could very well be called ‘music snacking libraries.’” Almost identical complaints are being levelled at Spotify, YouTube, and the rest. These anxieties are now forgotten because, as Loughridge notes, the very existence of music-lending libraries has been forgotten. If they hurt music sales, the damage was soon repaired. Loughridge suggests that this obscure history should promote a “healthier skepticism toward claims that any model represents ‘the’ answer for the music industry.”

All I’d ask for from Apple Music is what Deezer offers, called “Flow”: one press and it generates a neverending playlist based on what you’ve listened to and liked, but adding new “alike” tracks.


How the tech press forces a narrative on companies it covers » Medium

Aaron Zamost:

I don’t remember who told me company narratives were like a clock. I was at Google, where I’d taken a job on the communications team despite zero experience in communications. During my early days there, I tried to navigate my new profession by listening to the many comms experts already at the company from whom I would learn so much. One theory about narratives stuck with me: A company’s narrative moves like a clock: it starts at midnight, ticking off the hours. The tone and sentiment about how a business is doing move from positive (sunrise, midday) to negative (dusk, darkness). And often the story returns to midnight, rebirth and a new day. It was a passing remark, and hardly revolutionary — it closely followed the hero’s journey and other theories of storytelling. But it made a ton of sense.

Oh wow, does it ever. (Though: not just tech, is it?)


Smartphone trends in the US » Tech.pinions

Jan Dawson:

One of the key things I’m hearing – and which was somewhat evident already in the Q1 2015 results the carriers announced – is that the huge upgrade cycle which happened in 2014, and especially in Q4, is somewhat sucking the wind out of sales in 2015 so far. Though that upgrade cycle was partly driven by massive iPhone sales, and is therefore good news for Apple, it seems to be somewhat depressing Android device sales in the first half of 2015, despite the new device launches from major vendors including Samsung, LG, and HTC.

In general, I suspect we’ll see somewhat lower rates of upgrading this year than we did last year, as there were a number of factors that drove higher than usual rates in 2014 and many of those customers will now not be upgrade-eligible until late 2015 or even 2016.

Convenient for Apple that it doesn’t really focus its efforts until late in the year.


Samsung sees seventh straight profit decline » WSJ

Jonathan Cheng and Min-Jeong Lee:

When the Galaxy S6 and its curved-screen variant, the Galaxy S6 Edge, were launched in April, the phones were praised by reviewers and greeted with strong advance orders from consumers. But Samsung appears to have badly miscalculated in its expectations for what kinds of smartphones these consumers were after. According to a person familiar with the matter, the company initially expected to sell four Galaxy S6 smartphones for each Galaxy S6 Edge that it sold, and set up its production facilities accordingly. Instead, demand was much likely closer to even for the two devices, the person said. That led to a glut of unsold Galaxy S6 devices—particularly white-coloured devices—and not enough Galaxy S6 Edge smartphones, the person said.

Analysts quoted in the story are estimating between 71m and 76m smartphones shipped in the quarter, of which the S6 and Edge would be “slightly more than 20%” (that’s 14.2m-15.2m – so take it as 15m). Being left with a colour variant is bad, bad news.


The reddit rebellion, how should reddit make money?, the disappearance of high-end Android » Stratechery

From Ben Thompson’s paid daily briefing:

This is a pretty clear screw-up by Samsung that suggests they don’t understand just how starkly the smartphone market has bifurcated: the only people buying a high-end Android phone want the top-of-the-line, and that means the Edge. Anyone who is concerned about price isn’t going to save $100 by buying a normal S6; they’re going to save $500 and get a perfectly serviceable phone that runs the exact same software. That said, I suspect that even had Samsung properly forecast Edge demand sales would have still been disappointing…

…it does seem likely that the S6 stole whatever HTC One customers existed: the Taiwanese smartphone manufacturer just reported a loss of $261 million on revenues of just over $1 billion; the company originally forecast revenues of $1.57 billion but the One M9 has been a complete flop. It seems likely (pending LG’s numbers) that there is only room for one high-end Android model, for now anyways; small solace for Samsung, but solace nonetheless.

I don’t usually excerpt from subscriber products like Thompson’s (because it’s effectively breaking the paywall, which is his livelihood) but this was too apposite to miss. Subscribe. It’s low-priced and insightful. (His suggestion for how reddit should make money is smart.)


Billion dollar turnaround: Sony Mobile CEO » ArabianBusiness.com

Neil King:

As an inevitable by-product of the unit’s recent performance, [Sony Mobile chief Hiroki] Totoki has had to fend off rumours that Sony is, or was, planning to sell off its mobile division as a result of the dire financial results. A defence, he says, is easy to make when you look at the reasons behind the poor figures. “The speculations arose because in 2014 we made a huge loss as a mobile business,” he says. “It mainly came from the write-off of the goodwill of our impairment asset. When we bought back Ericsson’s share [in 2012], we bought back 100 percent of it. And obviously that price was high. We had to write it down and it made a substantial loss for the company.

“But this was an accounting loss and did not impact our cash flow. Our cash flow is very healthy. But the accounting loss was so huge — that’s why people have speculated like this. “Before that rumour, we exited the VAIO business, which was the PC business. That led people to think that Sony would exit the smartphone business, as well. But the smartphone business is very different from PCs. “Smartphones are completely connected to other devices, also connected to people’s lives — deeply. And the opportunity for diversification is huge. We’re heading to the IoT (Internet of Things) era and have to produce a number of new categories of products in this world, otherwise we could lose out on a very important business domain.”

Two things: the writeoff of value wasn’t the entirety; Sony still made an operating loss, even ignoring goodwill writeoffs. Secondly, the IoT argument is why I think Microsoft will stick with the smartphone business despite its horrendous losses. Interesting to see Sony Mobile using it too.