Start up: Musk’s strange takeover, Apple’s cloud escapees, Gawker v Thiel redux, the Trump question, and more

Blade Runner: Sean Young and Harrison Ford in a Polaroid
Yes, OK, but what about the typography in the film? Photo by kaytaria on Flickr. (Where you can see a ton more Blade Runner Polaroids – all including Sean Young.)

Like many others already have, you could sign up to receive each day’s Start Up post by email.

A selection of 14 links for you. Yes, they are. I’m charlesarthur on Twitter. Observations and links welcome.

Tesla makes offer to acquire SolarCity • Tesla Motors

Elon Musk:

»in March 2015, we launched Tesla Energy, which through the Powerwall and Powerpack allow homeowners, business owners and utilities to benefit from renewable energy storage.

It’s now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun.

The SolarCity team has built its company into the clear solar industry leader in the residential, commercial and industrial markets, with significant scale and growing customer penetration. They have made it easy for customers to switch to clean energy while still providing the best customer experience. We’ve seen this all firsthand through our partnership with SolarCity on a variety of use cases, including those where SolarCity uses Tesla battery packs as part of its solar projects.

So, we’re excited to announce that Tesla today has made an offer to acquire SolarCity.

«

Guess who is a big shareholder in SolarCity?
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April 2016: Elon Musk supports his business empire with unusual financial moves • WSJ

April 2016:

»Since October 2014, SolarCity Corp. has tried to lure individual investors to the solar-power business by pitching $214m of what it calls “solar bonds” through the company’s website.

The biggest buyer by far, though, was rocket maker Space Exploration Technologies Inc., including $90m of $105m sold last month.

The bonds were an “excellent investment,” billionaire entrepreneur Elon Musk said in an interview. And he knows more about the companies than anyone. Mr. Musk is their largest shareholder, the chairman of SolarCity and chief executive of SpaceX.

«

Hmm.
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Former Apple engineers escaped to create their own cloud startup • Recode

Arik Hesseldahl:

»One group of Apple network engineers led by Jason Forrester, now SnapRoute’s CEO, was detailed to a skunkworks effort to, as one source familiar with the assignment put it, “build something they couldn’t get from any existing networking vendor” — software that was powerful enough to meet Apple’s industrial-grade networking needs, but also flexible enough to allow frequent on-the-fly changes to respond to shifting demands.

As the work progressed, Forrester and his team chafed at their hidden role in the behemoth project. “Slowly, our desires to share our ideas with the world began to overshadow the thrill of working for Apple,” he wrote. They left their jobs last year and started SnapRoute.

SnapRoute makes software that helps companies manage their cloud systems, whether those systems are internal or external. Right now, if a company is overwhelmed with a sudden demand, such as a suddenly popular new app bringing in unprecedented numbers of photo uploads, it’s expensive and slow to change how the network works. SnapRoute’s software makes that switch quicker and cheaper.

The 20-person startup emerged from stealth mode last week with $4.5 million in venture capital investments led by Lightspeed Ventures.

«

link to this extract

 


Well….Google just announced at SMX that the 3-pack is going to start… • Google+

Joy Hawkins:

»Well….Google just announced at SMX that the 3-pack is going to start containing an ad soon. So instead of the 3-pack it’s going to be 1-ad + 2 organic listings. Yes, the ones right on Google search (not the expanded pack). Be prepared to try to get clients in the top 2 instead of the top 3!

«

Translation: in local search on mobile/desktop, there will be an ad (or two) above the maps, and then two organic results. Here’s a screenshot.

It’s the only way for Google to keep growing its ad revenues as mobile becomes bigger but the number of searches on it don’t grow.
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Disdain for Gawker and praise for Thiel at Facebook’s stockholders meeting • BuzzFeed News

Alex Kantrowitz:

»Facebook shareholders (at least the ones not named Mark Zuckerberg) didn’t have a say in Peter Thiel’s reelection to Facebook’s board Monday, but it didn’t seem to matter. At Facebook’s annual stockholders meeting, shareholders applauded Zuckerberg’s move to reelect the controversial board member. Some even cheered Thiel on in his campaign to destroy Gawker.

Thiel is at once funding lawsuits against Gawker, a Facebook publishing partner, and serving as a delegate for Donald Trump, who after the Orlando shooting suggested the children of Muslim immigrants are a security threat to the United States. These positions, to some, may appear to conflict with Facebook’s mission “to make the world more open and connected.” Especially since Facebook is a critical source of traffic to publishers like Gawker, and publishers help fill Facebook’s News Feed with high-quality content. But to Zuckerberg, whose majority voting share means he has absolute power over these decisions, and to those in attendance, Thiel is still the right guy for the job.

«

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You won’t be able to sue the next Gawker • Medium

Cody Brown:

»If [Peter] Thiel is successful in destroying Gawker, he will martyrize them. The Hollywood movie that will come from this a few years from now is amazing to imagine. Social Network — The Sequel. Staring Jesse Eisenberg, Hulk Hogan, Donald Trump, and a series of tech billionaires with egos as thin as egg shells.

I now feel hesitant to bring up a point like this in a public forum. So many of those I know in the heart of Silicon Valley are thoughtful, deeply intelligent, interesting people but this is their blind spot. They have funded or built massive new institutions of social change without much scrutiny but the scrutiny is finally coming and they don’t know how to handle it. They will cut you out or block you for even engaging. Paul Graham and a partner at Andreessen Horowitz unfollowed after I made a few tweets in support of Gawker. A single email from any of these guys could torpedo my next round of funding. I have more to lose than to gain by putting my name next to this.

And that’s the point.

If the price of dissent in Silicon Valley is too high, dissent will find a darker avenue. The next ValleyWag is likely to be more like WikiLeaks. It could be anonymous. It could be outside the jurisdiction of The United States. And it could use all the shiny tools of the web, Tor, bitcoin financing, Zeronet, the blockchain, to exist above the law.

«

link to this extract

 


Apple unlikely to make big changes for next iPhone • WSJ

Daisuke Wakabayashi and Eva Dou:

»The biggest planned change in this year’s phones is the removal of the headphone plug, which will make the phone thinner and improve its water resistance, said people familiar with that matter.

The Lightning connector will serve double-duty as a port for charging the phone and for connecting headphones, they said. KGI Securities analyst Ming-Chi Kuo said he expects the new iPhone to be one millimeter thinner than the current iPhone.

Apple plans bigger design changes for 2017, the 10th anniversary of the original iPhone. Those changes could include an edge-to-edge organic light-emitting diode, or OLED, screen and eliminating the home button by building the fingerprint sensor into the display, according to people familiar with the matter.

An Apple spokeswoman declined to comment.

«

So there will have to be some Extra Thing to make it worth plugging headphones into your Lightning connector. And as has been asked, how do you charge while listening to music?
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Moto X designer will soon be ex Moto designer • The Verge

Vlad Savov:

»Jim Wicks, the man responsible for the celebrated designs of the 2013 Moto X and 2014 Moto 360 smartwatch, is leaving the former Motorola after 15 years of loyal service. Having joined Motorola in 2001 after design lead roles at Sony and Sapient, Wicks was part of the leadership team that stayed on during the tumult of being taken over by Google and sold on to Lenovo. But this year has seen the Motorola name phased out from public use and Rick Osterloh, the previous chief of the company, departing to head up a new hardware unit at Google. Wicks is now following suit and moving into academia, joining Northwestern University’s Segal Design Institute as a full-time faculty member.

«

As I’ve said before, I think Motorola won’t make another Android Wear smartwatch. It’s dead, Jim. The gutting of Motorola – well, that’s corporate life.
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Facebook scraps in-video links to other sites • BBC News

»Video-makers can still add a link to the text that appears at the top or bottom of native video posts. However, this does not appear if the video is being watched in full-screen mode, and will therefore be missed if a user is allowing one clip to auto-play after another.

A “click for more” link does still appear superimposed over videos viewed on PCs.
However, it now makes the clips appear larger rather than directing users to third-party websites, as had been the case before.

Many broadcasters – including the BBC – upload shortened versions of their material in order to direct audiences to the full versions on their own sites.

Others, such as al-Jazeera’s AJ+ service, are content to build awareness for their brands by making clips for the social media platform without trying to send users to their sites.

Facebook itself has an incentive to discourage audiences from leaving as this allows it to show them more ads.
“This is further evidence that having eaten the audiences for newspapers, Facebook is now keen to stifle the audiences for broadcasters,” commented Roy Greenslade, professor of journalism at City University London, and a former editor of the Daily Mirror and Sunday Times.

«

Facebook is becoming an inescapable gravity well for publishers.
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Now examining: Blade Runner • Typeset In The Future

Dave Addey goes into another of his deliciously detailed examinations of the fonts, symbols and typefaces (those are different, right?) in this iconic film. Previous efforts have looked at Moon and Alien. The latter was, like this, directed by Ridley Scott, and Addey notices something odd in an early scene when Deckard gets into a VTOL “Spinner”:

»The Spinner’s landscape-orientation TV shows a display that may be familiar to regular TITF readers:

This ENVIRON CTR PURGE display is identical to the one we saw in Alien, just before the Nostromo exploded :

As if that wasn’t enough self-plagiarism, Ridley Scott also steals a second display from his earlier sci-fi masterpiece.

«

There’s your lunchtime reading sorted.
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Refugee rescue app pulled from App Store after it is outed as fake • The Guardian

Alex Hern:

»An app which purported to offer aid to refugees lost in the Mediterranean has been pulled from Apple’s App Store after it was revealed as a fake.

The I Sea app, which also won a Bronze medal at the Cannes Lions conference on Monday night, presented itself as a tool to help report refugees lost at sea, using real-time satellite footage to identify boats in trouble and highlighting their location to the Malta-based Migrant Offshore Aid Station (Moas), which would provide help.

In fact, the app did nothing of the sort. Rather than presenting real-time satellite footage – a difficult and expensive task – it instead simply shows a portion of a static, unchanging image. And while it claims to show the weather in the southern Mediterranean, that too isn’t that accurate: it’s for Western Libya.

The app was developed by Grey Group, an ad agency in Singapore that’s part of global advertising giant WPP.

«

Read on for complete and absolute bull spouted by Grey’s executive creative director about “algorithms”. Shameful, and shameless.
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How Is Donald Trump going to quit? • Gawker

Ashley Feinberg lays out four scenarios, of which this one – during the convention – strikes me as possible:

»Remember, absolutely everything Donald Trump does is about A) creating an appearance of having won and B) getting as much positive attention as humanly possible. To succeed in this scenario, Trump needs something huge to take everybody’s mind off the fact that he’s backing out of the presidency. Trump needs to announce Trump TV.

Or the Trump News Network or Trump Broadcasting or Der Stürmer or whatever he decides to call it. This way, Trump gets to turn the Republican National Convention, where virtually every media outlet in the nation has gathered, into a press conference for the launch of his very own television network.

As Vanity Fair pointed out, his whole campaign has basically been building to this point. His constant bashing of the media certainly must mean he thinks he can do it better. And to his credit, Trump does have a knack for commanding a national audience. Why bother being President, a job he neither wants nor is qualified for, when he can do the only part he actually enjoys (screaming things on television) for the rest of his life?

«

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The weird story behind the Trump campaign’s $35,000 payment to ‘Draper Sterling’ • ThinkProgress

Judd Legum on money paid to a company that oddly has the same name as the famous fictitious ad guys:

»[Jon] Adkins co-founded the medical device company with Paul Holzer, a former Navy Seal and current medical student at Dartmouth. Holzer was involved in Charlie Baker’s run for governor in 2014 — he ran the campaign’s “voter contact strategy.” He was also part of the “management and strategy team” for Missourians For John Brunner, a candidate for governor.

Trump paid an additional $3,000 each to Holzer and Adkins in May for “field consulting.” Holzer listed Adkins’ home as his address.

This is when things get interesting.

The only other apparent public mention of Draper Sterling effectively accuses it of being a scam that helps perpetrate legally questionable activity.

It comes from an FEC complaint against an entity called “Patriots For America,” a federal super PAC seeking to influence the Missouri governor’s race. The complaint, filed on May 12 by an economics professor named Aaron Hedlund, alleges that Patriots For America listed no receipts or disbursements on its FEC filings, yet sent out direct mail.

It also highlights an unusual debt of $56,234 to “Draper Sterling LLC” for “business consulting.” Hedlund describes the debt as “mysterious,” “highly unusual” and a potential violation of the law.

«

There’s usually something a bit fishy around presidential campaigns, but this is just weird. I find the Trump campaign’s (“campaign’s”) shenanigans endlessly fascinating because it’s like a clown car being driven on a Formula 1 circuit. Bits are flying off all over the place.
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Missing the boat in music • Asymco

Horace Dediu:

»how does a 15 million user base in 1 year compare with the growth rate for the incumbents Spotify and Pandora?

The following graph shows the ramps for Spotify, Pandora and Apple Music since their moments of market entry. The accumulation of users by Apple looks to be the fastest yet.

This is, of course, due to a maturing use case. Apple did not have to educate people to the notion of music as a subscription. It could just announce it and users would discover it and just sign up, especially if they were already iCloud subscribers and had a credit card attached to their iTunes account.

But that’s the whole point. Apple did not have to move first in music subscriptions. It did not even have to move second or third. When it did move it could just skim the market and add to its already healthy Services revenue (orange line in the first graph above.) Missing the boat in music in this case meant capturing all the value quickly and with minimal expense.

Fundamentally, Apple’s entry into music subscriptions was a sustaining effort. Streaming sustained Apple rather than disrupting it. The difference may seem merely one of semantics, but it is also the difference between life and death for a challenger. Meaning matters.

«

Some discussion in the comments about whether streaming is a disruptive innovation after all, rather than sustaining. My own comment there is that it depends on surrounding preconditions, which have taken years to come right.
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Errata, corrigenda and ai no corrida: none notified.

Start up: risky USB-C cables, Google’s travel funnel, Uber’s tax diversion, bye-bye 747, and more

This damn thing was silently eating huge chunks of iOS time – and battery – at least until last October. Photo by edowoo on Flickr.

Last chance this week to sign up to receive each day’s Start Up post by email. You won’t believe what happens next. (OK, you might.)

A selection of 8 links for you. Tested on humans for irritancy. I’m charlesarthur on Twitter. Observations and links welcome.

Google engineer Benson Leung finds a USB Type C cable that isn’t just dangerous on paper — it allegedly fried his hardware » Android Police

Bertel King:

Not all USB Type C cables are created equal. Some charge better than others. A number ignore USB spec so much that they run the risk of actually damaging your hardware. This could happen gradually, or in the worst-case scenario, it could be instant.

Googler Benson Leung has taken on the task of going through Amazon and reviewing whichever USB Type C cables he can get his hands on. We’ve recommended a number of them in past deals, feeling confident that we’re steering readers in the direction of safe accessories. We don’t test these products ourselves, so we consider what he does a real service.

Unfortunately, Leung may be taking an extended break. After plugging Surjtech’s 3M USB A-to-C cable (the item shows up now as not available, but here’s the 1M option you’ll presumably also want to avoid) into his 2015 Chromebook Pixel and two USB-PD Sniffer devices, he says the latter failed immediately. Resetting the analyzer and reflashing the firmware did not bring the hardware back to life.

Shouldn’t there be a proper certification system for USB-C? Having to rely on one Google engineer seems barmy. Especially in light of this.
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Facebook’s iOS bug led ComScore to overestimate time spent » AdAge

Tim Peterson, on a rejigging after it was realised that Facebook’s app used all sorts of trickery on iOS to make itself appear to be active (silent audio, etc) to the OS:

When looking at Facebook’s iPhone app specifically, total time spent [after some of the bugs – but note, not all – were fixed] was 40% lower in November compared to September [before the fix], and the average amount of time spent per person was 41% lower. For Facebook’s iPad app, total time spent was 39% lower, as was the average amount of time spent per person.

For comparison, total time spent in Facebook’s Android app increased by 2% and average time spent per user was flat when comparing September and November; ComScore’s Android figures are considered more reliable than its iOS figures because the firm is only able to take into account activity when the app is running in the foreground.

A Facebook spokeswoman declined to comment.

Amazing – Facebook’s iOS app really was the spawn of the devil in the way it abused battery life through to October 2015. (And it’s hardly innocent now.)

That up-to-October period includes a lot of testing of new iPhones “in real-life situations” by gadget reviewers, as it happens.
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Google revamps travel search queries, almost making web results irrelevant » Search Engine Land

Barry Schwartz:

Google has quietly revamped the mobile user interface for travel-related searches. The result of the change makes it really hard to get to the organic web results once you click on the “more destinations” button. Let me walk you through the experience.

This is called “thrusting the user head-first into the sales funnel”.
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Why the sun is setting on the Boeing 747 » The Conversation

Guy Gratton:

Today, the industry has moved towards twin-engine aeroplanes such as the Boeing 777 and the Airbus A330, with three-engine aeroplanes being relatively unpopular because of the high labour costs of working on an engine bedded into the aeroplane fin. The four-engine 747 retained a clear place in the market because twin-engine planes must stay within a certain distance from an airport in case of engine failure. This allowed the 747 to achieve shorter journey times on the longest routes because it can use more direct flight paths.

However, improving engine reliability means authorities have slowly increased the distance a twin-engine airliner can fly from a runway, gradually reducing the advantage of having four engines. And of course, those newer, more reliable engines have also been bigger and more efficient.

Of course, the slowdown in 747 production doesn’t mean the original jumbo jet will disappear from our skies just yet. The latest models are much longer, bigger and operate with more modern engines and instruments than the earlier 747-100s (no longer do the crew have to take sextant readings through the cockpit roof), and the newer aircraft are likely to stay in service for at least another 20 years.

Then: “Where’s the sextant?”
Now: “Where’s the sextant app?”
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Uber’s Dutch businesses had zero employees in 2013 » Business Insider

Oscar Williams-Grut:

A European member of parliament has accused Uber’s European business of being “specifically designed, from the start, to reduce its tax liabilities.”

Labour’s Anneliese Dodds made the comment to Business Insider over email after we pointed out that two Dutch companies closely involved in running Uber’s UK business had no employees for up to a year after it launched here.

Uber employed eight people in its Amsterdam offices in 2013. But the corporate entity that immediately controlled the UK operation had none.

*grinds teeth* We’re now at the stage where if an American tech company pays more in tax than the average Briton we’re shocked.
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The end of Twitter » The New Yorker

Joshua Topolsky:

what should worry Twitter isn’t the value of its stock. (USA Today reported that, given its cash reserves, the service could run for another four hundred and twelve years with current losses.) What should worry Twitter is irrelevance, and there is growing data to suggest that that is where the company is headed. If Twitter’s real-time feed is its most powerful asset (and it is), it’s not difficult to see a future in which Instagram, Facebook, Snapchat, or even a newcomer like Peach (yes, I am citing Peach) focus enough on real-time news that they obviate the need for Twitter’s narrow, noisy, and oft-changing ideas about social interaction. Considering the fact that Kevin Weil, the head of product, left the company to join Instagram, it’s easy to imagine that service mutating or bifurcating into a speedier, more social platform for sharing links and having conversations. And, for many users—particularly young users, according to a recent survey—Snapchat is already their most important destination. We live in the Age of the Upgrade, and the generation raised on the Internet is the most fickle of brand champions: it loves something passionately, until it doesn’t. Then it moves on.

Ultimately, Twitter’s service is so confused and undifferentiated in the market that it’s increasingly difficult to make a clear case for its existence.

That’s not quite right; it’s more that lots of other services have come along and do similar things (text, pictures, links) but Twitter has always had the focus on The Moment – that it is the place where you see the world unfold, if the world cooperates. Nowhere else can do that.
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Why Alto’s Adventure will be free on Android » The Verge

Andrew Webster:

According to both [Ryan] Cash [of development company Snowman] and Noodlecake’s Ryan Holowaty, one of the main reasons they decided to make the game free on Android is piracy. “Piracy on Android is a much bigger issue on the platform especially in the case of premium iOS titles that charge more than $0.99,” Holowaty explains. When Noodlecake ported iOS game Wayward Souls to Android, for example, the studio found that only 11% of installed copies of the game were paid for. The studio even uploaded a special version of its game Shooting Stars on a number of torrent sites as an experiment, one that couldn’t be completed if you were playing a pirated copy.

There were also factors outside of piracy that contributed to the decision. “It made sense to us because of the state of mobile gaming and the reality that the vast majority of players do not pay for games,” says Holowaty. “In addition, Android has a much larger install base than iOS internationally, and games that release in countries like China and Japan are basically free-to-play only at this point. So to really capitalize on the market internationally, it made sense to have a free version.”

That’s Alto’s Adventure, which was released 12 months ago on iOS. Does anyone monitor how long it takes games and other non-platform apps to reach Android from iOS?
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Regulators are failing to block fraudulent adverts » FT.com

John Gapper:

Malware robots — “bots” in advertising jargon — are estimated to sit on 10 per cent of home computers in the US, browsing away in the background while the owners do other things, or sleep.

Second, the world of programmatic advert buying and selling is highly automated and bafflingly complex, filled with layers of intermediaries doing slightly different things for commissions. An advertiser places adverts through an online network contracted by its media buying agency. The network may find inventory on which to place them on an exchange such as Google’s DoubleClick Ad Exchange, into which thousands of publishers plug.

That is the simple version. There are more obscure ways to do it, enabled by automation and the internet. The result is that no one knows everyone with whom they trade, or can be sure where ads end up being shown. This makes it easy for fraudsters to infiltrate and infect the advertising supply chain.

Third, companies are desperate. The economics of digital publishing are under severe strain, with publishers being paid small amounts for millions of page views. They need traffic and some are tempted into buying it from brokers that can mysteriously rustle it up. Such publishers look the other way rather than delving too deeply into where the traffic comes from.

I’m currently reading The Big Short, Michael Lewis’s book about the people who realised – slowly but with growing horror and delight – that the bond market built around US subprime mortgage loans was unsustainable, and began to bet against it (“shorting” it). The film derived from the book is fabulous. Go and see it.

Reading the book, you try to think like those people: to look for opportunities in giant, unsustainable businesses whose precise workings aren’t really understood and whose collapse is inevitable, yet which the participants (with an interest in its continuation) insist is fine and dandy.

The online ad business begins to look like that to me.
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Errata, corrigenda and ai no corrida: none notified.

Start up: Apple’s $8bn tax bill?, the tech funding squeeze, Friends Liquidated, Samsung ‘Live Photos’+ more


At least you knew that the advert might be seen by real people. No such assurances in the online world. Photo by University of Pittsburgh Libraries 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, so no spam.

A selection of 12 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Why you should never consider a travel planning startup » Tnooz

Nadav Gur, principal at NG Vanguard Enterprises:

First, you need to acquire users. Guess what — if they’re not planning a trip, they’re not interested in travel planners. They don’t even acknowledge their existence.

People are bombarded by new websites/apps/brands all the time, and they filter for what’s relevant.

That’s what you see GEICO ads on TV all the time – cause the only way to get your attention those 1–2 times a year when you give a damn about insurance, is to be in front of you all the time.
No matter how much press/word-of-mouth/viral exposure you’re getting, it only registers if/when it happens to be relevant.

Inevitably this means that you too have to advertise a lot. And no, free user acquisition schemes like SEO do not work in 2015 at scale in established markets.

The Priceline Group spends over $2bn per year on Google Ads alone. Guess why?

Not so easily disrupted. And that’s before you get to the question of how many people spend enough on travel for any affiliate amounts to be worthwhile.
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Tech faces hour of reckoning as fundraising drops, layoffs rise » USA Today

Jon Swartz:

Is tech in for a rude awakening this year after a magic carpet ride the past few years?

The numbers, and recent actions by once-highflying start-ups, would seem to suggest so.

Consider: Mega-rounds, defined as funding of more than $100 million for venture capitalist-backed companies, are in free fall. The rate of private start-ups attaining unicorn status — a valuation of at least $1 billion — are grinding to a crawl. Friday layoffs at tech start-ups, deemed Black Fridays, are increasing. Bellwether tech stocks such as Apple, Google, Facebook and Amazon have been taking it on the chin.

“It’s a time to re-calibrate — so many companies can’t burn extraordinary amounts of money forever,” says Sunil Panel, co-founder of Sidecar, a pioneer in the crowded ride-sharing space that shuttered operations on Dec. 31.

Last year, Silicon Valley projected unbridled swagger. Today, “there is definitely an era of reckoning,” says Chris Sacca, a venture investor with stakes in Uber and Twitter. “Reality is setting in.”

Not sure about “grinding to a crawl” (note to USA Today subs: things grind to a halt, or slow to a crawl), but the slowdown in stupid ideas is palpable.
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European antitrust chief takes swipe at privacy issue » The New York Times

Mark Scott on the EC’s Margrethe Vestager’s speech at the DLD conference:

“If a few companies control the data you need to cut costs, then you give them the power to drive others out of the market,” Ms. Vestager said at the DLD conference, a gathering of digital executives and policy makers.

She said that “it’s hard to know” how much data is given up when using an online messaging service.

“But it’s a business transaction, not a free giveaway,” she continued. “As consumers, we need to be treated fairly.”

Ms. Vestager’s warning shot in the often-rancorous privacy debate comes ahead of a Jan. 31 deadline for Europe and the United States to reach a new data-sharing agreement…

…A number of European executives echoed Ms. Vestager’s fears about how a small number of American tech companies could use their large-scale data collection to favor their own services over those of rivals. Among them was Oliver Samwer, the German entrepreneur who co-founded Rocket Internet, one of the region’s most high-profile tech companies.

“If someone like Google or Facebook has all of the data, then that’s not good,” Mr. Samwer said here on Sunday.

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Whatsapp goes free, says it won’t introduce ads » Mashable

Whatsapp readily acknowledges that killing its only source of income will raise questions about introducing third-party ads. But the company has a different idea.

“Starting this year, we will test tools that allow you to use WhatsApp to communicate with businesses and organizations that you want to hear from. That could mean communicating with your bank about whether a recent transaction was fraudulent, or with an airline about a delayed flight,” the post reads.

We reckon Whatsapp will charge organizations and business for establishing channels with their users through the service, though no details were announced. The idea is by no means new; a Bloomberg report in May 2015 claimed Whatsapp might foray into B2C messaging in the “longer term.”

Perfectly sensible business idea, and could also turn it into a platform like WeChat (whose capabilities and inclusions dwarf those of any western app).
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Friends Reunited website to close down » BBC News

Zoe Kleinman:

Friends Reunited launched in the year 2000 and was bought by broadcaster ITV for £175m ($250m) in 2005.

However, it failed to keep pace with other social networks.

It was sold to comic publisher DC Thompson for only £25m in 2009 and Mr Pankhurst wrote in a blog post that the company had offered it back to him a couple of years ago.

Pankhurst and business partner Jason Porter agreed to take on the site for a trial period to see if they could revitalise it.

“It became clear that most of the actual users coming to the site were using it purely as a messageboard,” wrote Mr Pankhurst.

“And I also realised that of the more than 10 million users registered, a lot had done so over a decade ago and hence their contact details were out of date. But importantly – it hasn’t covered its costs and like any business this can’t continue indefinitely. Therefore, whilst it’s sad, I believe it’s time to move on and put Friends Reunited to bed.”

Quite why ITV or DC Thompson bought it is one of those mysteries of business; it was never remotely a fit with either. So after ruining many marriages (of people who looked up old school flames), it’s handing that particular torch over to Facebook, where people can do exactly the same…
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Pakistan lifts ban on Youtube after launch of own version » Reuters

Tommy Wilkes:

Pakistan said on Monday it had removed a three-year ban on YouTube after the Google-owned video-sharing website launched a local version that allows the government to remove material it considers offensive.

Pakistan banned access to YouTube in September 2012 after an anti-Islam film, “Innocence of Muslims”, was uploaded to the site, sparking violent protests across major cities in the Muslim-majority country of 190 million people.

The Ministry of Information Technology and Telecom said in a statement that under the new version of YouTube, the Pakistan Telecommunication Authority can ask for access to offending material to be blocked.

“On the recommendation of PTA, Government of Pakistan has allowed access to recently launched country version of YouTube for Internet users in Pakistan,” the ministry said.

“Google has provided an online web process through which requests for blocking access of the offending material can be made by PTA to Google directly and Google/YouTube will accordingly restrict access to the said offending material for users within Pakistan.”

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November 2013: Bitcoin under pressure » The Economist

The Economist doesn’t name writers, but I happen to know this is by Glenn Fleishman, writing back in 2013:

Server farms with endless racks of ASIC cards have already sprung up. But as part of Bitcoin’s design, the reward for mining a block halves every 210,000 blocks, or roughly every four years. Sometime in 2017, at the current rate, it will drop to 12.5 Bitcoins. If the returns from mining decline, who will verify the integrity of the block chain?

To head off this problem, a market-based mechanism is in the works which will raise the current voluntary fees paid by users (around five cents per transaction) in return for verification. “Nodes in the peer-to-peer network will try to estimate the minimum fee needed to get the transaction confirmed,” says Mr Hearn.

Bitcoin’s growing popularity is having other ripple effects. Every participant in the system must keep a copy of the block chain, which now exceeds 11 gigabytes in size and continues to grow steadily. This alone deters casual use. Bitcoin’s designer proposed a method of pruning the chain to include only unspent amounts, but it has not been implemented.

As the rate of transactions increases, squeezing all financial activity into the preset size limit for each block has started to become problematic. The protocol may need to be tweaked to allow more transactions per block, among other changes. A further problem relates to the volunteer machines, or nodes, that allow Bitcoin to function. These nodes relay transactions and transmit updates to the block chain. But, says Matthew Green, a security researcher at Johns Hopkins University, the ecosystem provides no compensation for maintaining these nodes—only for mining. The rising cost of operating nodes could jeopardise Bitcoin’s ability to scale.

Following Mike Hearn’s farewell the other day, I think Fleishman is allowed to say “told you so”.
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“Bitcoin Boulevard” no longer booming » Marketplace.org

Elizabeth Miller:

It’s been almost two years since a group of businesses in a Cleveland suburb started accepting digital currency bitcoin as a form of payment. The response at first was huge.  Visitors from around the world stopped at what became known as “Bitcoin Boulevard.” But now, the bitcoin hype has subsided. 

Along a lane of small retail stores, restaurants and bars, nine independent Cleveland Heights businesses banded together to form Bitcoin Boulevard in May 2014. But today, two of those businesses have closed, one is not actively accepting bitcoin, and a wine shop ceased most of its bitcoin transactions after the Ohio Division of Liquor Control banned alcohol purchases with the digital currency.

Mitchell’s Fine Chocolates is one of the original nine businesses. Owner Bill Mitchell says he started seeing a drop in bitcoin payment when its value dwindled at the beginning of 2015.

“Since the latter part of the winter of this year going through the end of October, it’s been deader than a doornail,” said Mitchell.

Mitchell isn’t the only one seeing a drop in bitcoin business. Shawn Paul Salon says it has only had six bitcoin transactions in the past 18 months. That’s a lot less exciting than everyone had hoped.

Reality check.
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The problem with Adgorithms’ prospectus » Investors Chronicle

Alex Newman, on the AIM-listed ad tech company whose shares have plummeted by 80% from their IPO:

So what went wrong? This is what the company said in its first profit warning, on 9 October, explaining a “significant” and indefinite impact on revenue:

“In recent weeks, the online advertising market has experienced severe disruption, resulting in a loss of supply for major online advertising exchanges and a drop in demand from major media buyers.”

In fact, this disruption had begun several months before, even prior to Adgorithms’ listing. In April, media trading platform news site adexchanger.com reported that AppNexus – which, together with fellow ad exchange Adap.TV related to the majority of Adgorithms’ 2014 revenues – had started screening out unverifiable media inventory. AppNexus’ chief executive, who followed several other ad exchanges when he launched the clean-up in November 2014, later acknowledged that more than half of the impressions flowing through his platform were failing the test. This has had the dual effect of suppressing Adgorithms’ revenues and – according to Peel Hunt analyst Alex DeGroote – increasing the cost of digital media.

Adgorithms certainly should have known about AppNexus’ clean-up plans before listing, and was aware that at least one of its peers had been hit by the broader changes. In April, fellow Israeli ad tech group Matomy Media (MTMY) issued a profit warning, citing the “implementation by one of the leading media trading platforms [this was AppNexus] of a new media verification and screening tool that resulted in an immediate decrease in the amount of digital media available for purchase”.

“Unverifiable” inventory is what can also be called “fraudulent” ads – shown to bots on sites that humans never visit. It’s worth visiting the AdExchanger link (“screening out unverifiable…”) which points to just how much junk and fraud there may be going on.

Seriously, online ads have ended the age of “half of what I spend on advertising is wasted”. Now you have no idea what proportion it may be if you’re using an ad network.
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Samsung to launch Live Photos rival called Vivid Photo with Galaxy S7 » Android Geeks

Marius Maria:

Back in September, Apple launched the iPhone 6S which comes with Live Photos, a feature which captures 1.5 seconds of video before and after a picture is taken. HTC’s Zoe Capture was capable of doing the same thing long before Live Photos, but this gimmick only became cool now because Apple has it on its phones.

But Samsung wants to jump into the Live Photos bandwagon, too. According to one of our sources the software engineers of the South Korean phone maker are testing a Live Photos-like feature that is supposed to debut with the Galaxy S7 later this year.

Not sure about the “But” beginning that second paragraph. All sorts of words fit better: “Now”, “Predictably”, “Unsurprisingly”. Cold comfort for HTC.
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App economy jobs in the United States (Part 1) » Progressive Policy Institute

Michael Mandel:

Is 1.66 million a reasonable figure for US App Economy employment? This figure is based on our estimate of roughly 550,000 core app economy workers. That’s out of roughly 5 million people employed in computer and mathematical occupations or as computer and information systems managers. In effect, core app economy workers make up roughly 11% of the tech workforce.

Informal discussions with tech executives suggest that it’s reasonable to attribute roughly 11 percent of the tech workforce to the App Economy in the United States. Large portions of software development involve backend systems, such as financial and operation databases, which are not mobile specific. On the other hand, software development focused on online consumer or individual interactions must necessarily involve apps, because Americans increasingly access the Internet via their smartphone or other mobile devices. Going forward, mobile is likely to become more important rather than less, further pushing up the number of App Economy jobs.

We can do another comparison. In 2007, before the introduction of the iPhone, there were roughly 3.9 million people employed in computer and mathematical occupations or as computer and information systems managers. Since then tech employment has risen by 1.1 million, suggesting roughly half the net gain in tech occupational employment since 2007 has come from the App Economy.

For the job breakdown, it puts iOS at 1.4m (87%), Android at 1.1m (70%), BlackBerry at 107,000 (6%) and Windows Phone/Mobile at 45,000 (3%). Adds up to 166% because some people (two-thirds?) work on multiple ecosystems. (Via Horace Dediu.)
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Apple may be on hook for $8bn in taxes in Europe probe » Bloomberg Business

Adam Satariano:

The European Commission contends that Apple’s corporate arrangement in Ireland allows it to calculate profits using more favorable accounting methods. Apple calculates its tax bill using low operating costs, a move that dramatically decreases what the company pays to the Irish government. While Apple generates about 55% of its revenue outside the US, its foreign tax rate is about 1.8%. If the Commission decides to enforce a tougher accounting standard, Apple may owe taxes at a 12.5% rate, on $64.1bn in profit generated from 2004 to 2012, according to Larson, a litigation analyst for Bloomberg Intelligence.

Apple is perhaps the highest-profile case of US companies facing scrutiny from officials in Europe. Starbucks, Amazon and McDonalds also have had its tax policies questioned.

Several senators came to the defense of US companies on Friday. In a letter to US Treasury Secretary Jack Lew, bipartisan members of the Senate Finance Committee asked the administration to make sure that European regulators won’t impose retroactive penalties like those that would hit Apple.

Odd if Google, Microsoft, Facebook and Twitter aren’t also in this.
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Errata, corrigenda and ai no corrida:

Start up: UK encryption doubletalk, Netflix VPN crackdown, Apple’s iAd retreat, and more


A Nest thermostat: malfunctioning, but what about privacy? Photo by Elvert Barnes 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, so no spam.

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

No backdoors but UK government still wants encryption decrypted on request… » TechCrunch

Natasha Lomas:

During the committee session [in the UK Parliament] [home secretary Theresa] May was asked to clarify the implications of the draft bill’s wording for encryption. Various concerns have been raised about this — not least because it includes a clause that communications providers might be required to “remove electronic protection of data”.

Does this mean the government wants backdoors inserted into services or the handing over of encryption keys, May was asked by the committee. No, she replied: “We are not saying to them that government wants keys to their encryption — no, absolutely not.”

However the clarity the committee was seeking on the encryption point failed to materialize, as May reiterated the government’s position that the expectation will be that a lawfully served warrant will result in unencrypted data being handed over by the company served with the warrant.

“Where we are lawfully serving a warrant on a provider so that they are required to provide certain information to the authorities, and that warrant has been gone through the proper authorization process — so it’s entirely lawful — the company should take reasonable steps to ensure that they are able to comply with the warrant that has been served on them. That is the position today and it will be the position tomorrow under the legislation,” said May.

Completely contradictory.
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Evolving proxy detection as a global service » Netflix

If all of our content were globally available, there wouldn’t be a reason for members to use proxies or “unblockers” to fool our systems into thinking they’re in a different country than they’re actually in. We are making progress in licensing content across the world and, as of last week, now offer the Netflix service in 190 countries, but we have a ways to go before we can offer people the same films and TV series everywhere.

Over time, we anticipate being able to do so. For now, given the historic practice of licensing content by geographic territories, the TV shows and movies we offer differ, to varying degrees, by territory. In the meantime, we will continue to respect and enforce content licensing by geographic location.

Shorter version: we’re going to block your VPN.
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Five years later, Thunderbolt is finally gaining some traction in PCs » Ars Technica UK

Andrew Cunningham:

For many years, it looked like Thunderbolt was destined to be a modern version of FireWire: faster and smarter than contemporary USB interfaces, but so rare outside of Macs that there isn’t a very wide range of accessories beyond adapters and external hard drives. Thunderbolt versions 1 and 2 are available in most Macs sold between 2011 and now, but it has been included in just a handful of PC laptops and high-end motherboards.
Thunderbolt 3 is turning that around. The port is suddenly beginning to show up in high-end offerings from just about every major PC OEM, starting with some Lenovo workstation laptops and Dell’s new XPS lineup and continuing in laptops and convertibles from HP, Acer, Intel, and others.

We’ve been talking to the PC companies at CES about this sudden turnaround, and their answers have all been in more or less the same vein. The increased speed of Thunderbolt 3 combined with all the benefits of USB Type-C (including driving displays via Alternate Mode and charging laptops via Power Delivery) has finally made Thunderbolt convenient enough to be worth the trouble.

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David Maisel’s geometric geographies » The New Yorker

Marcia Bjornerud:

David Maisel’s aerial photographs of Toledo, Spain, and the surrounding La Mancha region, some of which will be on view at Haines Gallery, in San Francisco, through March 12th, can make Earth’s surface look more alien than terrestrial. Parts of the area that Maisel focussed on are underlain by light-colored alkaline rocks, which formed through the evaporation of an ancient body of water. The silvery soil of plowed fields almost shimmers, like a ghostly memory of that long-vanished sea.

Things like this, and more, in the gallery of images.


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Germany launches smartphone app to help refugees integrate » The Verge

Amar Toor:

The German government has launched a new smartphone app to help asylum seekers integrate in their new country. Known as Ankommen (“Arrive”), the Android app is available for free on the Google Play Store, and will launch on iOS soon, according to its website. Ankommen was jointly developed by the Federal Office for Migration and Refugees, the Federal Employment Agency, the Goethe Institute, and Bayerischer Rundfunk, a public radio and TV broadcaster.

The app is available in Arabic, English, Farsi, French, and German, and does not require an internet connection. It includes a basic German language course, as well as information on the asylum application process and how to find jobs or vocational training. The app also provides information on German values and social customs, with tips from other non-Germans who live in the country.

Note the underlying assumption: refugees will have a smartphone. So far the app has fewer than 1,000 downloads.
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Apple to disband iAd sales team » BuzzFeed News

John Paczkowski:

six years after launching iAd, Apple is stepping back from it. Multiple sources familiar with the company’s plans tell BuzzFeed News that Apple is getting out of the advertising-sales business and shifting to a more automated platform.

While iAd itself isn’t going anywhere, Apple’s direct involvement in the selling and creation of iAd units is ending. “It’s just not something we’re good at,” one source told BuzzFeed News. And so Apple is leaving the creation, selling, and management of iAds to the folks who do it best: the publishers.

Apple is phasing out its iAd sales force entirely and updating the iAds platform so that publishers can sell through it directly. And publishers who do so will keep 100% of the revenue they generate. It’s not clear what this means for Rubicon Project, MediaMath, and the other ad tech companies that had been overseeing programmatic, or automated, demand-side ad buying on the platform, but it doesn’t look good. Since everything can be done directly through the updated iAd platform, it’s likely that most of it will. “The big publishing groups will just fold programmatic buys into the stuff they’re selling across all their properties,” one source explained. iAd sales team members will be offered buyouts and released into the wild. The move is coming soon, perhaps as early as this week.

Advertising industry sources familiar with Apple’s new self-serve plan for iAds seem intrigued by it. “I think this is going to be great for publishers,” said one. “It gives them direct dialogue with their customers as opposed to forcing them to go through an Apple middleman. Access will be more plentiful and easier to manage — theoretically.”

How long will it be until the first malvertising via iAd? And what happens after that? I still feel iAd is a bad fit for Apple’s business model.
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Developing for wearables: from shrunken smartphone to wearable-first and beyond » VisionMobile

Stijn Schuermans:

In a previous post, we called the Internet of Things the peace dividend of the smartphone wars, and IoT developers the baby boomers of that period. In other words, smartphone innovation made hardware technology abundant. It’s no longer the bottleneck. IoT breakthroughs will happen not by making more powerful processors or larger memories, but by identifying new applications for the sensors, devices and connectivity. This certainly seems to be the case for wearables, which arguably started with the first Fitbit in 2008 and boomed after the launch of the Pebble and Android Wear in 2013 and 2014. Those were the days of the wearables hype.

That hype has now died down. Developers in particular are getting more cautious about wearables. Between Q4 2014 and Q2 2015, the percentage of IoT developers targeting wearables dropped from 28% to 21%. Developers have not turned their back on wearables entirely – many still plan to develop for wearables in the future – but the initial enthusiasm is making way for realism, and a search for truly valuable uses for these new devices.

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New study highlights privacy gap between consumers and tech vendors » WSJ Digits blog

Elizabeth Dwoskin:

The Pew Research Center has found in recent years that users of mobile and desktop computers are anxious about online privacy. The nonprofit’s latest study, published on Thursday, aimed to learn whether consumer anxiety waxed or waned in specific scenarios.

Conclusion: It does.

Although users often accept the implicit bargain of the online world — receiving free services in exchange for personal data — service providers can’t take users’ comfort with the arrangement for granted. Privacy concerns are more “case-by-case than driven by broad principles,” said Lee Rainie, Pew’s director of Internet, Science, and Technology Research.

The report revealed a gulf between the public and the tech industry, Mr. Rainie said, judging by the plethora of data-gathering gadgets on display at last week’s Consumer Electronics Show in Las Vegas. For instance, Nest seeks to connect items in the home–smart thermostats, light bulbs, garage doors and so on — into a system that would collect data to coordinate their operations; switching on lights, for instance, when the garage door indicates that an occupant has returned home in the evening.

The January 2016  report suggests that public attitudes could limit such plans.

Sure that Paul Graham will get right onto this and set the tech industry straight.
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Nest thermostat glitch leaves users in the cold » The New York Times

Nick Bilton:

“Woke up to a dead nest and a very cold house,” a commenter wrote on the company’s forum. “Not good when you have a baby sleeping!”

“Mine is offline,” another customer tweeted. “Not enough battery (?) I’m traveling. Called nest. Known problem. No resolution. #nest #fail.”

Admittedly, this may strike some as a quintessential first-world problem: a thermostat that can’t connect to the web. But for some users, it posed genuine issues.

For those who are elderly or ill, or who have babies, a freezing house can have dire health consequences. Moreover, homeowners who installed a Nest in a weekend home, or who were on vacation, were also concerned that their pipes could freeze and burst, causing major damage.

Matt Rogers, the co-founder and vice president for engineering at Nest, blamed a software update from December. “We had a bug that was introduced in the software update that didn’t show up for about two weeks,” Mr. Rogers said apologetically. In January, devices went offline, and “that’s when things started to heat up.”

The question is, will we look back on events like this as just teething problems – a bit like some of the cloud outages of, say, 2007 – or will they just multiply as more systems interact with slightly jury-rigged ones?

And as Bilton also points out, the contracts these gizmos/services are provided under use “arbitration” clauses which hugely favour the company, not the consumer; one lawyer tells him that Nest’s terms of service “are inherently unfair to consumers”. Not biased; inherently unfair.
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Google scamming consumers and screwing publishers with “Contributor” » LinkedIn

Mike Nolet is former CTO of AppNexus:

When I first heard of Google Contributor in early November I thought… this is exactly what the ad-industry should be doing, go Google! For those not familiar with the service, Contributor allows users to contribute a certain sum of money and opt-out of bandwidth hogging ads. The service “bids” on the users behalf, and if successful the user can choose to either collapse the unused space or upload their own messages – ingenious!

I immediately signed up, dialed my contribution up to$15/mo and started browsing. I configured my contributor account to show me messages from the new wellbeing starutp I’m working on and instead of ads I started seeing all sorts of positive messages. Cool!

A few months have since past and I figured it was time to review where my money was going. Boy, did my opinion change.

Looking at reports, it turns out I contributed $4.77 to remove 977 ads on websites since I signed up and Google charged me $29.67. The ~$5-CPM paid out seems generous, but I’ll accept that.  

The  $30 CPM and whopping 83% margin is downright theft. Google is keeping 83% of the money.

Who knows, maybe something is broken, but as it stands this is a service is a scam.

But he could dial down his contribution, surely? In a world though where adblockers are free, it seems somewhat worthy. Also, I calculated how much news sites (well, The Guardian) probably gets per browser per year from ads: $1.14.
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Errata, corrigenda and ai no corrida: SATs (Standard Aptitude Tests) are very useful, apparently.

Start up: sneaking iOS apps, spoofing Spotify, CIA director gets hacked, and more


One of these is probably chewing up your battery by playing silent audio (on Android too). But which? Photo by microsiervos 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, so no spam.

A selection of 9 links for you. Like champagne for the mind! Perhaps. I’m charlesarthur on Twitter. Observations and links welcome.

iOS apps caught using private APIs » SourceDNA

Nate Lawson and team:

we noticed that these functions were all part of a common codebase, the Youmi advertising SDK from China.

We then associated the clusters of this SDK’s code with the release dates of the apps that contain them to see how it has evolved over time. The older versions do not call private APIs, so the 142 apps that have them are ok. But almost two years ago, we believe the Youmi developers began experimenting with obfuscating a call to get the frontmost app name.

Once they were able to get this through App Review, they probably became more confident they weren’t being detected and added the above behaviors in order. They also use the same obfuscation to hide calls to retrieve the advertising ID, which is allowable for tracking ad clicks, but they may be using it for other purposes since they went to the trouble to obfuscate this. The latest version of the Youmi SDK (v5.3.0), published a month ago, still gathers all the above information.

Apple has been locking down private APIs, including blocking apps from reading the platform serial number in iOS 8. Youmi worked around this by enumerating peripheral devices, such as the battery system, and sending those serial numbers as a hardware identifier.

Find out now! Just select your developer accounts from a list, and we’ll tell you what we found about your apps. We’ll also show the commercial and open-source code you’re using and alert you to future issues we find.

We found 256 apps (est. total of 1 million downloads) that have one of the versions of Youmi that violates user privacy. Most of the developers are located in China. We believe the developers of these apps aren’t aware of this since the SDK is delivered in binary form, obfuscated, and user info is uploaded to Youmi’s server, not the app’s. We recommend developers stop using this SDK until this code is removed.

Apple’s yanking the apps. Developer? Check it here. It’s always China, isn’t it? But nothing to stop apps from other countries doing the same.
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The background data and battery usage of Facebook’s iOS app » MacStories

Federico Viticci:

With iOS 9’s improved energy consumption stats, it’s easier to guess one of the various tricks Facebook may be employing to stay active in the background and drain battery. On my girlfriend’s iPhone, for instance, iOS 9 reports 5 hours of on-screen usage for the last 7 days, and another 11 hours of background audio usage with Background App Refresh turned off.

My guess is that Facebook is hijacking audio sessions on iOS by keeping silent audio in the background whenever a video plays in the app. And because, by default, videos on Facebook auto-play on both Wi-Fi and Cellular and few people ever bother to turn it off, that means there’s a high chance the Facebook app will always find a way to play a video, keep audio in the background, and consume energy to perform background tasks. I’m not alone in noticing the mysterious “Facebook audio” background consumption, and video auto-play seems to me the most likely explanation at this point. I don’t know if turning off auto-play may fix the problem, but I’d recommend doing that anyway to save data.

Un-fricking-believable. The web is suddenly alive with people who have used iOS 9’s better battery monitoring system and discovered that Facebook is eating their battery like nobody’s business.

More discussion here, and a full-on Medium post, which shows Facebook using 3.4hrs in the background with background app refresh turned off.

Just delete it, and use the mobile site – navigate there and create a home page icon for it. And close the tab when done.
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Microsoft announces price of 1TB Surface Book — $500 more than the top 13-inch MacBook Pro » GeekWire

James Risley:

The top-of-the-line 1TB Surface Book comes with 16GB RAM and a Core Intel i7 processor for a cool $3,199, $500 more than the fully tricked out 13-inch MacBook Pro, and the same price as the fully enhanced, much larger 15-inch option. The Surface Book does have a few more tricks up its sleeve than the MacBook Pro, including a touchscreen, removable keyboard and a 360-degree hinge, so the price difference isn’t without reason.

The 1TB option joins the lineup that starts at $1,499 for a 128GB Core i5 version. Microsoft isn’t offering many fine-grained customizations for its first laptop, like allowing for more RAM on its 128GB model, but most models look adequately powerful for the everyday user.

“Everyday user”? Wasn’t the point of the Surface Book that it was for some slightly mythical ultra-user? As for the touchscreen and removable keyboard… the case for the touchscreen is still pretty weak for the “everyday user”.
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Teen says he hacked CIA director’s AOL account » New York Post

Philip Messing, Jamie Schram and Bruce Golding:

Hillary Rodham Clinton’s email scandal didn’t stop the head of the CIA from using his own personal AOL account to stash work-related documents, according to a high school student who claims to have hacked into them.

CIA Director John Brennan’s private account held sensitive files — including his 47-page application for top-secret security clearance — until he recently learned that it had been infiltrated, the hacker told The Post.

Other emails stored in Brennan’s non-government account contained the Social Security numbers and personal information of more than a dozen top American intelligence officials, as well as a government letter about the use of “harsh interrogation techniques” on terrorism suspects, according to the hacker.

The FBI and other federal agencies are now investigating the hacker, with one source saying criminal charges are possible, law enforcement sources said.

The hacker is getting investigated for criminal charges? Brennan is the one who ought to be prosecuted. If a kid in high school could do this, any Chinese or Russian hacker would have.
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Why it’s OK to block ads » Practical Ethics

James Williams:

Think about the websites, apps, or communications platforms you use most. What behavioral metric do you think they’re trying to maximize in their design of your attentional environment? I mean, what do you think is actually on the dashboards in their weekly product design meetings?

Whatever metric you think they’re nudging you toward—how do you know? Wouldn’t you like to know? Why shouldn’t you know? Isn’t there an entire realm of transparency and corporate responsibility going undemanded here?

I’ll give you a hint, though: it’s probably not any of the goals you have for yourself. Your goals are things like “spend more time with the kids,” “learn to play the zither,” “lose twenty pounds by summer,” “finish my degree,” etc. Your time is scarce, and you know it.

Your technologies, on the other hand, are trying to maximize goals like “Time on Site,” “Number of Video Views,” “Number of Pageviews,” and so on. Hence clickbait, hence auto-playing videos, hence avalanches of notifications. Your time is scarce, and your technologies know it.

But these design goals are petty and perverse. They don’t recognize our humanity because they don’t bother to ask about it in the first place.

Neatly argued, by stepping right back from the debate as framed by the ad industry.
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I built a botnet that could destroy Spotify with fake listens » Motherboard

William Bedell:

I decided to prototype a robot with an endless appetite for music to see if Spotify could detect what it was doing.

Here is what I coded into life:

Image: William Bedell
First, a remote server used browser automation to sign up for Spotify accounts with randomly generated names, ages, and email addresses. This gave me a limitless supply of accounts to stream songs, so as not to alert Spotify by having a handful of users with inhuman amounts of activity.

A central command server periodically sent out Spotify login credentials to cloud servers (or repurposed personal computers) running dozens of Spotify clients, all masked behind virtual private networks. Each “user” logged in, listened to a few hours of music, then logged out. Their playlists were random selections from various artists I like. Then, I deployed the botnet using a patchwork of free cloud instances and my own hardware.

It was mesmerizing to watch the plays rack up. Unknown albums from minor celebrities I adore suddenly had tens of thousands of hits, where before they had virtually none. With minimal effort, I was generating $32.26 per day in royalties. Inevitably, my thoughts wandered to greed: how profitable would this music royalty factory be if I turned it on music I owned the rights to?

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Intel has 1,000 people working on chips for the iPhone » VentureBeat

Mark Sullivan:

Intel now has a thousand people or more working to outfit a 2016 iPhone with its lauded 7360 LTE modem chip, sources say. If all goes well, Intel may end up providing both the modem and the fabrication for a new Apple system on a chip.

Sources close to the matter say Intel is pulling out the stops to supply the modems for at least some of the iPhones Apple manufactures in 2016. This phone will likely be the iPhone 7. VentureBeat was the first to report on the two companies’ work together, and more pieces are falling into place as the project progresses and grows.

Apple may dual-source the LTE modems in its new iPhones from both Intel and Qualcomm. Today, Qualcomm’s 9X45 LTE chip is baked into all iPhone modems.

This story makes one go “hmm..” right up to the point where it talks about dual-sourcing. Then it suddenly makes perfect sense: Apple would look to play the two off against each other, as with CPU supply.
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E.U. rule change could be big headache for small businesses » Advertising Age

Kate Kaye:

“I think everybody was hoping [the ECJ] wouldn’t [rule against Safe Harbour], but we were kind of expecting them to rule it this way,” said Acxiom Chief Privacy Officer Jennifer Glasgow. But, she said, “This is not going to disrupt a lot of data flow today or tomorrow or next week.”

The Safe Harbor compact has helped streamline the data flow for more than 4,000 companies including data brokers, ad technology firms and ecommerce companies among others for 15 years. But alarmed by Edward Snowden’s revelations, the E.U. court decided the agreement is not strong enough to protect Europeans’ privacy, including against U.S. spies.

Most large firms handling massive amounts of data such as Google, Facebook and Amazon should already have other legal contracts in place, including previous agreements guiding heavily-regulated health and financial data, that should allow them to continue data transfer as usual. Smaller marketers and data vendors won’t be so lucky, which could have ripple effects throughought the marketing ecosystem.

Correction: the ECJ wasn’t “alarmed” by the revelations; it made a judgement in the light of those revelations about whether EU law could still be applied to data transferred to the US under Safe Harbour.

What’s weird is how people are acting as though this won’t make a difference. If you’re not allowed to transfer data US-owned servers on the basis that it might be rifled through by the US government, how can it not? (Of course, everyone would be howling for safety if these were Chinese-owned servers and companies; witness the US administration’s lockout of China’s Huawei from communications contracts.)
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The secrets of a billionaire’s blood-testing startup » The New Yorker

Eric Lach:

Part of the Theranos story is the tension between commerce, science, and secrecy. Ken Auletta explored this tension in the magazine late last year, in his December profile of Holmes. For most of its existence, Auletta wrote, Theranos has “operated with a stealth common to many Silicon Valley startups.” The company has published little data in peer-reviewed journals describing its devices or its test results, and it has kept the workings of its technology a closely guarded secret. Holmes herself prefers speaking about the coming revolution that her company will bring rather than the specifics of the technology itself.

Holmes and the company say this is normal, that Theranos is only trying to protect itself and its trade secrets while it creates something new. The company says that it has taken steps to get its tests approved by the F.D.A. But there are many who say that health-care technology can’t be afforded the same hushed reception as a new model of the iPhone. “Science is peer-reviewed,” Lakshman Ramamurthy, a former F.D.A. official and a vice-president at the consulting company Avalere Health, said, reacting to the Journal article this week.

Of course, Holmes could be a billionaire, or a zeroinaire, depending how things pan out over the next few months.

What the WSJ story also shows (by its impact, and the puzzled followups) is how little understanding there is of biotech among most journalists. Science journalists tend to shy away from it because it involves business, and business journalists aren’t good at figuring out what questions to ask experts about the science.
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Start up: Amazon’s profitable cloud, Apple Music woes, early days of search, and more

Kepler 452b
“Hello! Have you heard of ‘Greece’? Do you have spare money?” Artist impression by Nasa.

A selection of 9 links for you. Lather them all over yourself. I’m charlesarthur on Twitter. Observations and links welcome.

How Lycos almost won the search engine wars » Gizmodo

Jim Gilliam with a tale from the pit:

A few months later, our team made a huge discovery. In our ongoing efforts to make search results better, Dennis set up an eye-tracking lab and began scientific testing of how people used search. We watched where people looked on the pages and noticed something shocking: people didn’t look at the ads. Not only that, but the more we tried to make the ads stand out, the less people looked at them. Our entire advertising philosophy was based on making ads flashy so people would notice them. But we saw, quite counterintuitively, that people instinctively knew that the good stuff was on the boring part of the page, and that they ignored the parts of the page that we—and the advertisers—wanted them to click on.

This discovery would give us an edge over everyone in the industry. All we had to do was make the ads look less like ads and more like text. But that was not what the ad people wanted, and the ad people ran Lycos. The advertiser was seen as our true customer, since advertising was where our revenue came from. Our team argued that our customers were also the people searching, and without them, we’d lose the advertisers. The eye-tracking revelation wasn’t enough to convince them, so we tried another tack.

In the ultracompetitive world of search engines, the biggest factor aside from the quality of the results was how fast they loaded. We were constantly trying to take things out of the pages to make them load faster. So I created a program that took queries coming into our site and ran them on all the major search engines, ranking them in order of speed.

And guess which speed-obsessed, blinky-ad-ignoring company came along next? It’s an extract from Gilliam’s new book, The Internet Is My Religion. Have a free download of the book.
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Amazon Web Services is now a $6 billion-a-year cloud-computing monster » Quartz

Dan Frommer:

AWS generated almost $400m in operating income during the quarter, and almost $1bn over the past four quarters. It represented almost 40% of Amazon’s consolidated-segment operating income for the second quarter in a row—despite only generating about 8% of the company’s sales.

In short: AWS is one of Amazon’s most valuable assets.

That 40%-8% ratio is something to ponder. Prices are going to fall as Microsoft and Google keep trying to win share. Will profits remain as strong?
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Apple Music is a nightmare and I’m done with it » Loop Insight

Jim Dalrymple had a terrible experience:

I went through about 15 albums one night and manually added all of the missing songs. It was frustrating, to say the least, but I did it. I nearly lost my mind the next morning when I checked my iPhone and Apple Music and taken out all of the songs I added the night before. I was right back where I started.

In some cases, like Bob Dylan and Neil Young, a few of the songs show up twice on one album. When you tap to play the song, they both show the animated icon in iTunes, as if they are both playing. Note in the screenshot that the songs are different in terms of their length of playing time. Either Apple Music shaved a few seconds off one of the tracks, or they’re from different albums.

I’ve had some problems a little like this – duplicate tracks on iOS devices, ie not the originating device, which is the desktop. But nothing like Dalrymple’s awful loss of thousands of tracks. I’ve lost nothing. (People, don’t suffer the same way; make backups.) I’m just waiting for it to sort itself out. And I have a backup.

I suspect that Apple’s servers are suddenly under a colossal load, and that this is related in some way. Apple Music is very, very complicated. Not that that excuses track deletion. But it’s Spotify plus the iTunes Music Store plus iTunes Match. A gigantic beast.
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An identity thief explains the art of emptying your bank account » Bloomberg Business

Dune Lawrence:

On this particular winter night [in Minsk] in 2009, [Dmitry] Naskovets checks the online orders that have come in and sees a routine assignment. A client has tried to buy a MacBook Pro online with a stolen credit card, but American Express blocked the purchase. Now it’s Naskovets’s job to work it out with Amex.

He calls the toll-free number, using software that makes it look as if he’s dialing from the U.S. Any information the customer rep might ask for, Naskovets’s client sends him instantly by chat. The questions don’t usually get beyond the cardholder’s date of birth, Social Security number, or mother’s maiden name, but the woman fielding this call is unusually thorough. She notices that the phone number on the account has changed recently, triggering extra security. She puts Naskovets on hold while a colleague dials the old number and gets the actual cardholder on the line.

Thus begins an absurd contest: Naskovets against the man he’s impersonating. The agents throw out questions to distinguish the fake. When did you buy your home? What color was the car you bought in 2004? Each time Amex puts him on hold, he knows the legitimate cardholder is being asked the same question. At last, the rep thanks him, apologizes, and approves the purchase. Naskovets was even better than the real thing.

Scary.
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Apple Watch: a work in progress but packed with potential » CCS Insight

Ben Wood says his initial expectations were too high, and that he has been left underwhelmed. But, he adds:

this is version 1.0 and Apple has a proven track record of making a nice first device and then slowly but surely making it better and better. I’m not going to lie — I was among those who misjudged the original iPhone. It was easy to pick holes in the first model when it launched: poor battery life, no concessions to operators or subsidy, and missing features like 3G and MMS made it easy to jump to the wrong conclusions. But over time it’s become one of the most transformative electronic devices of our generation. That’s because the product that appeared in 2007 is not the product that hundreds of millions of people are using today. It was a full year before Apple opened the App Store, a major catalyst to the iPhone’s success. I predict we’ll take a similar journey with its watch.

When you go beyond the basic features and think about the sheer potential of the device you start to realise how significant it is. To me, it comes down to offering capabilities that are so compelling it’s not even worth the milliseconds it takes to whip your smartphone out of your pocket.

A perfect example of this is payment. Apple Pay landed in the UK this month. Although I’ve only used it a few times, my initial impression is that having a secure, predictable payment mechanism easily accessible on your wrist is hugely useful, whether you’re buying a coffee or hopping on a bus.

Another inspiring application is an electronic hotel room key – something Apple is already supporting at some Starwood hotels. No more arriving at your room struggling to get an unreliable plastic keycard out of your pocket or wallet, with a coffee in one hand and a suitcase in the other. A tap of the wrist and you’re in.

Things get even better when you add another layer of intelligence. At some point in the future, you’ll arrive at the hotel or approach the counter to pay for your coffee; a nearby beacon will tell your Apple Watch what information you’re likely to need. As if by magic the relevant loyalty card appears on the watch face ready to help you check in or pay for the coffee. These types of rich application are limited only by developers’ imagination and the software needed to create them.

Judging devices that obey Moore’s Law on their first incarnation really is a mug’s game.
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NASA just discovered ‘Earth 2.0’ » Business Insider

Jessica Orwig:

Kepler 452b will forever be remembered as the first, second Earth or what NASA refers to as “Earth 2.0” ever discovered:

Here’s what we know so far about this Earth 2.0:

It’s 60% larger than Earth.
• It’s most likely rocky, meaning it has a solid surface as opposed to a gaseous one, like Jupiter.
• It’s about 1,400 light years from Earth.
• It orbits its star every 385 days, very similar to Earth’s orbital length.
• The planet and star it’s orbiting are about 6 billion years old — 1.5 billion years older than our sun.

Any chance they could bail out Greece? Just asking.
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Google+: a case study on app download interstitials » Official Google Webmaster Central Blog

David Morell, software engineer at Google+ on why “hey, get our app!” things that take over the page might bug users:

Despite our intuition that we should remove the interstitial, we prefer to let data guide our decisions, so we set out to learn how the interstitial affected our users. Our analysis found that:
• 9% of the visits to our interstitial page resulted in the ‘Get App’ button being pressed. (Note that some percentage of these users already have the app installed or may never follow through with the app store download.)
• 69% of the visits abandoned our page. These users neither went to the app store nor continued to our mobile website.

While 9% sounds like a great CTR for any campaign, we were much more focused on the number of users who had abandoned our product due to the friction in their experience. With this data in hand, in July 2014, we decided to run an experiment and see how removing the interstitial would affect actual product usage. We added a Smart App Banner to continue promoting the native app in a less intrusive way, as recommended in the Avoid common mistakes section of our Mobile SEO Guide. The results were surprising:
• 1-day active users on our mobile website increased by 17%.
• G+ iOS native app installs were mostly unaffected (-2%). (We’re not reporting install numbers from Android devices since most come with Google+ installed.)

So much is weird about this. Why were they ever showing the interstitial to Android users, since “most” already had it? The news that not blocking a screen leads to people not giving up (especially for an app they’re likely to already have) isn’t that astonishing. Also: only 17% more read the page? That doesn’t seem so great, given that there were 69% abandoning before. Note too how the measurements aren’t congruent: in the first set, you’re told how many follows to the app there were, and how many abandoned. In the second, you’re told how “1-day active users” increased and how nothing happened to iOS installs – not how many clicked through.

When you aren’t given congruent statistics (in experiment A, X happened; in experiment B, X changed by Y), be distrustful.

And the other missing stat: the balance between iOS users and Android users who came to the page. It all just seems like a study in “what were you even thinking by trying to force people to click past an interstitial?”
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Worldwide smartphone market posts 11.6% year-over-year growth in Q2 2015, the second-highest shipment total for a single quarter » IDC

According to the latest preliminary release from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 337.2 million smartphones worldwide in the second quarter of 2015 (2Q15), up 11.6% from the 302.1 million units in 2Q14. The 2Q15 shipment volume represents the second highest quarterly total on record. Following an above average first quarter (1Q15), smartphone shipments were still able to remain slightly above the previous quarter thanks to robust growth in many emerging markets. In the worldwide mobile phone market (inclusive of smartphones), vendors shipped 464.6 million units, down -0.4% from the 466.3 million units shipped 2Q14.

Quite a contrast with the gloomier number from Trendforce on Tues/Weds. That gives smartphones 73% of sales; the 90% point, when featurephones are just edge cases, is fast approaching. Minor details: Samsung was the only top vendor to see a fall in shipments (and that by about 1m, so within margins of error). Apple, Huawei and Xiaomi all seeing growth faster than the market.

A notable quote from Melissa Chau on the phone team: “IDC now tracks over 200 different smartphone brands globally, many of them focused on entry level and mid-range models, and most with a regional or even single-country focus.”
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Lottery IT security boss guilty of hacking lotto systems to win $14.3m » The Register

Iain Thomson:

Iowa state lottery’s IT security boss hacked his employer’s computer system, and rigged the lottery so he could buy a winning ticket in a subsequent draw.

On Tuesday, at the Polk County Courthouse in Des Moines, Iowa, the disgraced director of information security was found guilty of fraud.

Eddie Tipton, 52, installed a hidden rootkit on a computer system run by the Multi-State Lottery Association so he could secretly alter the lottery’s random number generator, the court heard. This allowed him to calculate the numbers that would be drawn in the state’s Hot Lotto games, and therefore buy a winning ticket beforehand.

The prosecution said he also tampered with security cameras covering the lottery computer to stop them recording access to the machine.

Hmm – worth a one-hour drama. Not really a miniseries or a film.
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Start up: Argentina v bitcoin, Secret shuts, Cyanogen dumps OnePlus, Windows10 seeks devs, and more


It’s like this for Secret. Photo by alex mertzanis on Flickr.

A selection of 10 links for you. Like brandy butter for your brain. I’m charlesarthur on Twitter. Observations and links welcome.

Expect more Cyanogen phones from Chinese vendors » PCWorld

Michael Kan:

OnePlus’s flagship phone shipped close to 1 million phones at the end of last year.

“Without Cyanogen, OnePlus would have sold like one device in international markets,” [Cyanogen CEO Kirk] McMaster said in an interview. “Essentially they built their brand on the back of Cyanogen.”

The OnePlus success also showed other Chinese vendors that CyanogenMod could open doors to the global market. A number of these vendors are larger companies than OnePlus, but struggling in international markets to develop visible brands, and want help, he added.

It’s a good sign for Cyanogen, which also managed to bring on board Microsoft as a partner this month. But as for OnePlus, its ties with Cyanogen are probably ending.

Earlier this month OnePlus launched its own custom Android ROM, built with a simple interface that could replace the CyanogenMod. The change means that OnePlus can offer “faster, more meaningful updates”, according to the Chinese company. Cyanogen, however, will continue offering support to OnePlus phones still running its OS.

Cyanogen, plus Microsoft, is for me the most interesting thing happening in smartphones.


Can Bitcoin conquer Argentina? » NYTimes.com

Nathaniel Popper:

That afternoon, a plump 48-year-old musician was one of several customers to drop by the rented room. A German customer had paid the musician in Bitcoin for some freelance compositions, and the musician needed to turn them into dollars. Castiglione joked about the corruption of Argentine politics as he peeled off five $100 bills, which he was trading for a little more than 1.5 Bitcoins, and gave them to his client. The musician did not hand over anything in return; before showing up, he had transferred the Bitcoins — in essence, digital tokens that exist only as entries in a digital ledger — from his Bitcoin address to Castiglione’s. Had the German client instead sent euros to a bank in Argentina, the musician would have been required to fill out a form to receive payment and, as a result of the country’s currency controls, sacrificed roughly 30% of his earnings to change his euros into pesos. Bitcoin makes it easier to move money the other way too. The day before, the owner of a small manufacturing company bought $20,000 worth of Bitcoin from Castiglione in order to get his money to the United States, where he needed to pay a vendor, a transaction far easier and less expensive than moving funds through Argentine banks.

A new rule: any country under sustained currency pressure will see citizens increasingly turning to bitcoin to evade currency controls.


Sunset at the Secret den » Medium

David Byttow:

After a lot of thought and consultation with our board, I’ve decided to shut down Secret.

This has been the hardest decision of my life and one that saddens me deeply. Unfortunately, Secret does not represent the vision I had when starting the company, so I believe it’s the right decision for myself, our investors and our team.

I’m extremely proud of our team, which has built a product that was used by over 15 million people and pushed the boundaries of traditional social media. I believe in honest, open communication and creative expression, and anonymity is a great device to achieve it. But it’s also the ultimate double-edged sword, which must be wielded with great respect and care. I look forward to seeing what others in this space do over time.

The phrase “Secret does not represent the vision I had when starting the company” was highlighted by Ev Williams, Medium’s founder (and a Twitter co-founder). The final couple of sentences seem to be saying “Yeah, good luck with that, Whisper.”


Number of mobile-only internet users now exceeds desktop-only in the US » comScore, Inc

Mobile’s rise over the past few years has been well-documented as it continues to achieve major milestones illustrating its immense popularity, such as last year when app usage surpassed desktop usage and began accounting for half of all U.S. digital media consumption. But its latest milestone shows just how far this platform has come in overtaking desktop’s longstanding dominance as the primary gateway to the internet. For the first time in March, the number of mobile-only adult internet users exceeded the number of desktop-only internet users.

11.3% against 10.6% (the other 78.1% used both, of course). Tablets are counted as “mobile”; desktops still account for 87% of digital commerce. The latter number used to be 100%, of course.


Huge news: Windows 10 can run reworked Android and iOS apps » The Verge

Tom Warren:

After months of rumors, Microsoft is revealing its plans to get mobile apps on Windows 10 today. While the company has been investigating emulating Android apps, it has settled on a different solution, or set of solutions, that will allow developers to bring their existing code to Windows 10.

iOS and Android developers will be able to port their apps and games directly to Windows universal apps, and Microsoft is enabling this with two new software development kits. On the Android side, Microsoft is enabling developers to use Java and C++ code on Windows 10, and for iOS developers they’ll be able to take advantage of their existing Objective C code. “We want to enable developers to leverage their current code and current skills to start building those Windows applications in the Store, and to be able to extend those applications,” explained Microsoft’s Terry Myerson during an interview with The Verge this morning.

I have no idea why an iOS or Android developer would want to bother doing this. Putting an app onto a different platform involves immediate cost and future cost (in support). Can Windows 10 Phone (or whatever it is) really repay that?

Also, typical of The Verge’s approach, there’s no attempt to find any external comment on whether this is smart, stupid, or somewhere in between. Developers aren’t hard to find; nor are analysts. A comment from one or both groups would have informed readers. This falls short. (Contrast Mashable’s Christina Warren – no relation as far as I know – and Rene Ritchie of iMore. Sure, The Verge might have got the interview exclusively, but that’s still no reason not to make it even better by finding separate comment.)

For example, here’s a developer’s response to Ritchie:


The bot bubble: click farms have inflated social media currency » The New Republic

Doug Bock Clark:

Richard Braggs, Casipong’s boss, sits at a desk positioned behind his employees, occasionally glancing up from his double monitor to survey their screens. Even in the gloom, he wears Ray-Ban sunglasses to shield his eyes from the glare of his computer. (“Richard Braggs” is the alias he uses for business purposes; he uses a number of pseudonyms for various online activities.)

Casipong inserts earbuds, queues up dance music—Paramore and Avicii—and checks her client’s instructions. Their specifications are often quite pointed. A São Paulo gym might request 75 female Brazilian fitness fanatics, or a Castro-district bar might want 1,000 gay men living in San Francisco. Her current order is the most common: Facebook profiles of beautiful American women between the ages of 20 and 30. Once they’ve received the accounts, the client will probably use them to sell Facebook likes to customers looking for an illicit social media boost.

Most of the accounts Casipong creates are sold to these digital middlemen—“click farms” as they have come to be known.

It’s a full-time job. Where’s the government promise to create work like this in the UK, eh?


Apple warns of ‘material’ financial damage from Irish tax probe » FT.com

Tim Bradshaw and Christian Oliver:

Apple has warned investors that it could face “material” financial penalties from the European Commission’s investigation into its tax deals with Ireland — the first time it has disclosed the potential consequences of the probe.

Under US securities rules, a material event is usually defined as 5% of a company’s average pre-tax earnings for the past three years. For Apple, which reported the highest quarterly profit ever for a US company in January, that could exceed $2.5bn, according to FT calculations.

The warning came in Apple’s regular 10-Q filing to the Securities and Exchange Commission on Tuesday, a day after it reported first-quarter revenues of $58bn and net income of $13.6bn.

Forgotten what it’s about? Here’s some background.


Apple Watch: faulty Taptic Engine slows roll out » WSJ

Daisuke Wakabayashi and Lorraine Luk:

A key component of the Apple Watch made by one of two suppliers was found to be defective, prompting Apple Inc. to limit the availability of the highly anticipated new product, according to people familiar with the matter.

The part involved is the so-called taptic engine, designed by Apple to produce the sensation of being tapped on the wrist. After mass production began in February, reliability testing revealed that some taptic engines supplied by AAC Technologies Holdings of Shenzhen, China, started to break down over time, the people familiar with the matter said. One of those people said Apple scrapped some completed watches as a result.

Makes sense; some reviewers have complained about not getting anything noticeable “taps” in Watches they tried. Apple has moved to a different supplier, it seems, but is supply-constrained.


Engage Android users around the world » Jana

Over half of the top Google Play countries are emerging markets.

By download, that is, not revenue.


What if we are the microbiome of the silicon AI? » Edge.org

Tim O’Reilly, on the “website for thinkers”:

While all pundits allow that an AI may not be like us, and speculate about the risks implicit in those differences, they make one enormous assumption: the assumption of an individual self. The AI as imagined, is an individual consciousness.

What if, instead, an AI were more like a multicellular organism, a eukaryote evolution beyond our prokaryote selves? What’s more, what if we were not even the cells of such an organism, but its microbiome? And what if the intelligence of that eukaryote today was like the intelligence of Grypania spiralis, not yet self-aware as a human is aware, but still irrevocably on the evolutionary path that led to today’s humans.

This notion is at best a metaphor, but I believe it is a useful one.

Perhaps humans are the microbiome living in the guts of an AI that is only now being born! It is now recognized that without our microbiome, we would cease to live. Perhaps the global AI has the same characteristics—not an independent entity, but a symbiosis with the human consciousnesses living within it.

Oo, interesting idea.


Start up: Intel stutters, Google goes retail, why Apple Watch?, what people really want in news apps, and more


The view for too many small businesses, in Intel’s opinion. Photo by Ella’s Dad on Flickr.

A selection of 7 links for you. To read. I’m charlesarthur on Twitter. Observations and links welcome.

Why is Apple making a gold watch? » Benedict Evans

Apple stores are huge rich-media billboards on every major shopping street in the developed world: I can’t think of any other company that has shops as big as that in such premium locations in as many places. Apple retail is a self-funding marketing operation. So too, perhaps, is the gold watch. Apple might only sell a few tens of thousands, but what impression does it create around the $1,000 watch, or the $350 watch? After all, the luxury goods market is full of companies whose most visible products are extremely expensive, but whose revenue really comes from makeup, perfume and accessories. You sell the $50k (or more) couture dress (which may be worn once), but you also sell a lot of lipsticks with the brand halo (and if you think Apple’s margins are high, have a look at the gross margins on perfume). 

Meanwhile, though other companies are already making metal smart watches, I struggle to imagine Samsung making solid gold watches. Apple’s brand might or might not work there, but no other CE company’s does. That is, if this is marketing, and if it works, it’s marketing that no-one else can do. 

On another tack, perhaps the biggest message that this sends is that the Apple watch is not a technology product. It’s a post-‘feeds and speeds’ product. Today we have prices and release dates for the watch but no tech specs at all – because they’re irrelevant to the user experience.

Perfume margins are amazing. And yes, consider how sales of a Samsung gold smartwatch would go.


An incredibly shrinking Firefox faces endangered species status » Computerworld

Gregg Keizer:

Mozilla’s Firefox is in danger of making the endangered species list for browsers.

Just two weeks after Mozilla’s top Firefox executive said that rumors of its demise were “dead wrong,” the iconic browser dropped another three-tenths of a percentage point in analytics firm Net Applications’ tracking, ending February with 11.6%.

That was Firefox’s lowest share since July 2006, when the browser had been in the market for less than two years…

…In the last 12 months, Firefox’s user share – an estimate of the portion of all those who reach the Internet via a desktop browser – has plummeted by 34%. Since Firefox crested at 25.1% in April 2010, Firefox has lost 13.5 percentage points, or 54% of its peak share.

“Hello? It’s Marissa. Now, about that refund clause..”


Intel lowers first-quarter revenue outlook » Intel Newsroom

Intel Corporation today announced that first-quarter revenue is expected to be below the company’s previous outlook. The company now expects first-quarter revenue to be $12.8bn, plus or minus $300m, compared to the previous expectation of $13.7bn, plus or minus $500m.
 
The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe.

The XP refresh is/was still going on? Amazing. (During the same period last year, Intel’s revenue was $12.7bn. So it might be very close to zero growth.)


What do people want from a news experience? » Tales of a Developer Advocate

Paul Kinlan was building a news app:

I posited that users want (in order of priority):

• Notifications of important news as it happens
• An icon on the launcher so it can be loaded like an app
• News available to them offline (i.e, when they are in the tube)
• A fast site

My own intuition of an industry I am not too heavily involved in probably can’t be trusted as much as I think it can, so I sent out a terribly worded tweet.

What happened next will inform and entertain you. (No really, it will.) It did him.


Thousands have already signed up for Apple’s ResearchKit » Bloomberg Business

Michelle Fay Cortez and Caroline Chen:

Stanford University researchers were stunned when they awoke Tuesday to find that 11,000 people had signed up for a cardiovascular study using Apple Inc.’s ResearchKit, less than 24 hours after the iPhone tool was introduced.

“To get 10,000 people enrolled in a medical study normally, it would take a year and 50 medical centers around the country,” said Alan Yeung, medical director of Stanford Cardiovascular Health. “That’s the power of the phone.”

That’s people who would have had to download the update and opt in. Some fret about the quality of data (biased selection) but:

The data may not be perfect, but many concerns about ResearchKit – such as whether the patient sample is representative – are issues with traditional clinical trials as well, said Todd Sherer, CEO of the Michael J. Fox Foundation for Parkinson’s Research, which has collaborated with nonprofit group Sage Bionetworks on one of the apps.


Forking hell! Baidu gives up on its Android-based OS » Tech In Asia

Steven Millward:

No news means bad news when it comes to tech companies. If they’ve nothing to boast about, the ensuing silence looks suspicious. That’s been the case with Baidu’s version of Android (pictured above), which launched in late 2011.

Despite a high-profile and promising start as Dell made use of Baidu’s Android-based Yun OS for a new China-only phone, the Chinese search giant’s OS thereafter didn’t show any signs of finding favor with the nation’s smartphone shoppers. Yesterday, Baidu confirmed in its Yun OS forums that the Android skin will not get any more updates. The project is now suspended.

Had its own product suite, but missed the boat for this. However, has 500m monthly active users for its mobile search and 200m MAUs for its maps product. Might struggle by.


Google opens its first Google-branded store-in-a-store, in London » WSJ

Saabira Chaudhuri:

Google has opened in London its first Google-branded store-in-a-store selling space.

Housed within Dixons Carphone DC.LN -0.41%’s Currys PC World store on Tottenham Court Road, the Google Shop will give Google the opportunity to show off its range of Android phones and tablets, Chromebook laptops and Chromecasts.

“The pace of innovation of the devices we all use is incredible, yet the way we buy them has remained the same for years. With the Google Shop, we want to offer people a place where they can play, experiment and learn about all of what Google has to offer,” said James Elias, the U.K. marketing director for Google.

In some ways, the Google Shop is more of a branding exercise than an approximation of a standalone store. All sales from the store go to Dixons Carphone.

So it’s to sell.. Chromebooks? Chromecast? And – Google needs branding? Seriously?