How to find out if you’re paying an App Store subscription without realising it – and what Apple needs to do

There have been a number of articles recently with horror stories of unscrupulous developers who essentially con people into signing up for subscriptions to apps on the App Store; these can rake in huge amounts of money.

Of course you’re thinking: I don’t do that! I’d never fall for it. (Postscript: see my update at the end.)

But you can. As Sarah Perez writes,

They do this by intentionally confusing users with their app’s design and flow, by making promises of “free trials” that convert after only a matter of days, and other misleading tactics.

You think you won’t fall for it, but a lot of people do: the No.69 top grossing app gets $14.3m per year, and it’s a document scanner. Huh?

So because it’s important to know how to find out whether you’re on a subscription, here’s how to find it in iOS. (Here’s Apple’s page explaining how, but mine has nice pictures.)

First, go to Settings. There’s your account at the top: press on that. This takes you to the Apple ID area.

You want to press on the “iTunes and App Store” one:

This will take you through to a screen where the top link – though it doesn’t necessarily look like a link – is your Apple ID. (It’s in blue, so that tells you it is a link.) Press it.

OK, we’re nearly there! Now you want to choose “View Apple ID” from the menu below:

And now there’s yet another page: you want to go to the bottom of this, where it says “Subscriptions”. Press that.

/

Congratulations! You’ve beaten the boss level and your prize is to see what you’re subscribed to.

Hmm, looks like I don’t have any dodgy subscriptions that I ought to be worried about. But if there is something there you don’t like or don’t recognise, then press on that and it will take you to a page which will allow you to cancel the subscription immediately. It won’t tell you when you signed up, nor how much you’ve spent on it – both pieces of data that arguably would help in tracking back on scams – but at least you can stop it.

Now, this will probably strike you as pretty complex. Nobody’s going to come across that screen by accident; it’s quite possible that you wouldn’t come across it even if you were searching for “Subscriptions”, because a search in the Settings doesn’t show it up. Nor do my subscriptions to Apple Music and iTunes Match show up in the settings for Music. Your subscriptions are really hard to find.

This is bad in all sorts of ways, but it’s indicative of how subscriptions have sneaked up on Apple almost without it realising – even though adding subscriptions to apps was A Big Thing, back in 2011, and then again in 2016 when Apple revised the terms to make it easier to make money from them.

There are already good ideas about how this should be tackled. I liked this suggestion on Twitter from Trevor Phillippi (who is a product designer at Facebook):

His comment was “I’d love it if iOS did something like this. I just checked my subscriptions and wow, I’ve been passively wasting a bunch of money.”

He’s absolutely right: it wouldn’t be that hard to institute a monthly check of what you do and don’t use (that information is onboard the device) and what you’re signed up to (that info isn’t onboard; you can confirm this by putting your phone or iPad on Airplane mode and trying to access the “View Apple ID” info).

One obvious objection to this is that you might not be accessing the app you’re subscribed to on one device, but you are on another – a classic example would be Netflix: you don’t watch it on your phone but you do on your iPad. This is another reason why it’s Apple which has to institute this procedure, since (again) it will be able to see usage data. (We can get into the thickets of “you don’t use this app on your devices but someone else in your Family group does, so is that OK?” But first let’s fix this.)

There’s one small wrinkle, though truly for Apple it shouldn’t be. With hardware sales slowing, Apple has been pushing the narrative of its growing Services business with Wall St and hence investors. Subscription revenues, and Apple’s 30%-15% (in the second year and onwards) cut, feed into that Services chunk, which is now the second-largest source of revenue after iPhones. (It’s a long way behind, but growing quite fast.

Telling people that they’re not using subscriptions which they’ve signed up to would surely lead to more discontinuations, which means less money for developers and for Apple’s Services business. But where that churn is caused by fakes, this is a net positive for Apple. Users will feel reassured that Apple is looking after their interests, and discouraging scammy apps. Apple would also be able quite easily to spot apps which suddenly have above-average numbers of subscription discontinuations, and investigate them. Less money, but more trust; Apple isn’t going to miss $14.3m per year, but the people who didn’t realise they were signed up to a document scanning subscription service will be happy for it.

All that starts, though, with making it easier in the first place to find what the hell you’re subscribed to. Apple needs to create a “Subscriptions” tab in Settings that isn’t buried multiple layers down.

We’ve been here before: in-app purchases (IAPs) quickly gained a terrible reputation, and it took multiple pieces of bad publicity before Apple, and Google, and Amazon acted to make it harder for kids to run up four-figure charges on their parents’ credit cards. Subscriptions are just the new front in the forever war against bad actors on the app stores. But as with all the previous ones – non-functional apps at ridiculous prices, ripoff apps at ridiculous prices, spyware apps at rock-bottom prices, IAPs – it’s a battle that Apple needs to win in order to keep the confidence of its customers.

Postscript: after this was written and published, two people got in touch to point out that I don’t need both iTunes Match and Apple Music subscriptions: Apple Music will now do the things that iTunes Match used to. (It didn’t previously – I’ve had iTunes Match for years – but as this iMore article points out, since 2016 it does.) As pictured.

Apple Music/iTunes Match: now the same

Apple Music, iTunes Match: now basically the same thing.

So not only has this post (I hope) saved some people some money, it has saved me some money. I’d call that a success.

The axes of HomePod evolution: don’t judge what you can’t yet see


The MacBook Air, in an envelope just like it came in. Photo by yasuhisa yanagi on Flickr.

There’s been a lot of discussion about Apple’s HomePod, and the claim from Mark Gurman writing at Bloomberg that it “hasn’t lived up to expectations” in sales terms. Though if you ask analysts in the field, such as Ben Wood of CCS, they thought that 5 million in a year would be impressive. “Clearly my expectations were way lower than others,” commented Ben, which to me has echoes of the vastly inflated numbers that people expected smartwatches, and especially the Apple Watch, to sell, in the first year.

More relevant, I think, is the question of how the HomePod (or just “HomePod” – Apple never uses the definitive for its products, just as a parent wouldn’t for a child) is going to evolve.

And for that, it’s important to bear in mind how every single Apple product tends to evolve: from MVP, aka minimal viable product, to thing that people buy by the million.

Let’s go all the way back to the Bondi Blue iMac, from 1998, since that’s where the story of the modern Apple really begins. This was Apple trying to compete again in the PC market, and choosing to do so in an orthogonal way to pretty much everything else out there. It was all-in-one, it used USB (a new connector at the time), had no floppy drive (this alone was reckoned to spell its doom), and upgrading the RAM and hard drive was difficult.

But the next update showed the trajectory that Apple was on. The Bondi iMac gained colours, and it got more powerful, and added a DVD burner drive if you wanted. It didn’t revert to old connectors, but did add better sound.

iPod, youPod

Next, iPod.

Some of the iPod family – though there were more models and colours than this. Photo by Zengame on Flickr.

The first one was “expensive”, had a black and white and very pixel-y display, used a proprietary connector, had an unusual yet intuitive method for scrolling through songs, held 1,000 songs. As it evolved through the years, it generated variants that were smaller, had bigger and better screens, more memory, flash memory, but broadly the same controller and interface. (The iPod shuffle is like the Galapagos of iPods, but anyway.)

The MacBook Air (as at the top of the post). The first version had a very limited SSD drive, and underpowered processor. But it had those qualities of being thin and light and offering lots of battery power that people who could afford it really loved – especially when you compared to the average Windows laptop, which weighed tons more, had a DVD drive and floppy drive that road warriors in coffee shops didn’t need, and lasted much less long. You’d still recognise the first model today.

A calling for the iPhone


The iPhone X doesn’t look that different from the 6S, which doesn’t look that different from the original. Photo by Lucy Takakura on Flickr.

The iPhone is probably the poster child for MVP-ness. The first version’s software was limited (no MMS; no 3G; no text forwarding; no copy/paste), it was really expensive, its battery lasted a day when rival phones could last a week. But it could do so many things that others couldn’t, because of that touch screen and the concept of being a computer for your pocket, not a phone for your email. Subsequent versions have improved along pretty much every axis possible, apart from that battery life stuff (though the iPhone X is a big advance here).

The iPad. Look at these varieties.

iPad sizes have changed, but you’d still recognise the original if you’d only seen the newest, eight years on. Photo by MakeUseOf on Flickr.

The first version arrived in early 2010 and didn’t have a Retina screen (the iPhone 4, to be released later that year, would; but Retina screens at the size of an iPad were too expensive to contemplate for some time. What it did offer was something that wasn’t a PC trying to be squashed into a tablet form (which Dell and many others had been trying since 2001) and an approach to a big touch-driven screen that harked back to Jeff Haan’s remarkable TED demo of 2005. Since then, its screen has improved (hugely), it has gained an optional keyboard and pencil, and processor power has risen exponentially. But eight years on, the old and new look completely like siblings.

The Apple Watch. The first version could just about take you through a day if you didn’t exercise for too long. There has been plenty of tinkering with how the interface between apps works, but none with the basic concept of how you interact: lift-to-wake, or touches. The addition of GPS and phone data/calling has been welcomed, but if you hold the original Series 0 beside the latest Series 3, it’s essentially still the same thing: a device which hands off tasks from your phone to your wrist.

Bearing all this in mind, what should we expect from the HomePod’s evolution?

Again, look backward first. Look at the axes on which the previous devices evolved.
iMac:
Evolution: colour, extras, price, screen resolution, interfaces.
No evolution: size, shape.

iPod:
Evolution: colour, size, shape, control system, price, screen (colour-capable, video display-capable), output (to TV), interface (from proprietary Firewire, to 30-pin-Firewire and 30-pin USB, to Lightning; and Wi-Fi/Bluetooth in the iPod Touch), processor power.
No evolution: actually, pretty much everything about the iPod changed. (You could however argue that the iPod Touch is actually a cut-down iPhone, not an iPod, and that iPod evolution ended with the iPod shuffle of 2010 and iPod nano of 2012 – the latter being what some thought could be a precursor of an Apple wearable.)

MacBook Air:
Evolution: processor speed, screen size (smaller, never bigger than 13in), weight (reduced), disk size, price.
No evolution: screen quality (after all these years still isn’t Retina), shape, colour (there’s never been a black or rose gold MacBook Air; you want one, it’s aluminium).

iPhone:
Evolution: processor speed (duh), thickness, price, weight, colour, screen size, screen quality, login interface (from passcode to TouchID to FaceID), location capability (GPS, added in 2009’s iPhone 3GS), cameras (front-facing camera arrived on 2010’s iPhone 4).
No evolution: number of buttons (until the iPhone X, which removed the Home button), general interface, general portability, battery life

iPad:
Evolution: size, colour, processor speed, screen resolution, screen capability (Tru-Tone etc), price, functional accessories (Smart Keyboard, Pencil), interface (USB/30-pin to USB/Lightning).
No evolution: screen size ratio, battery life

Apple Watch:
Evolution: battery life, straps, GPS, 4G connectivity, price (by selling older models at lower prices, rather than having differently priced new models, as happened with the iPhone)
No evolution: screen size

All right. Bearing in mind all the above, how should we expect the HomePod hardware to evolve, and not to evolve?

An evolution before your eyes


A “HomePod evolution” concept. Photo by Martin Hajek on Flickr.

Softly spoken, software

Given the way that everything gains software capability, I expect it will gain the capability to play more services than just Apple Music. The ability to play Spotify (which is, don’t forget, the world’s biggest streaming music service) is an obvious piece of low-hanging fruit if you’re looking to tempt people to buy a better-sounding device. Remember, Apple is into hardware sales; Services may be the thing that it talks up, but hardware is the motor that drives the engine.

In which case, why sell HomePod v1 without Spotify capability? Because the v1 is always the MVP – the minimum viable product. Look at the iPhone. Look at the iPad. Look at the MacBook Air. Look at the Apple Watch. They all started out lacking capabilities that seemed obvious (the first iPad didn’t even have alarms, which the iPhone did) and then gained them. Apple has been circling around what the HomePod should do for years – it’s been in development since Siri came on board – and the fact that it took this long to get out of the design labs suggests the usual cautious approach. The people who have bought the first model are obviously, self-definingly, going to be people who like Apple stuff; it can’t, therefore, do any harm to only offer Apple Music as a music service. But putting Spotify on? That’s just a question of an API to Spotify, and an instruction set for Siri so it recognises “play X on Spotify” or “play the X playlist from Spotify”. It can probably be done through a software update.

Other software? Besides playing music, smart speakers’ utility seems to lie in (1) checking the weather forecast (2) setting kitchen timers (3) streaming music (4) setting alarms. Below that, the proportion of people who say they’ve ever done this stuff falls below 50% of smart speaker owners (per Comscore) and it’s hard to know how often people do it.

So – weather, timers, music, alarms. Dig down to the 30% level and there’s also home automation, product ordering (that’s going to be Amazon), calendars, and games/jokes/general questions. (The HomePod can also do iMessage sending and receiving, and FaceTime alls; those don’t come up in the “things people do” listing above 13%, but it’s not something you imagine people wanting to do a great deal.)

These are all things that you can do now. So when people complain about the HomePod’s capability, they’re really complaining that it doesn’t have other music services, and about Siri. The first is a software update, and the second is – well, Apple seems to be working on it.

Hard wearing, but what hardware?

What about hardware? What can we expect there? Is the HomePod more like the portable iPod, which had multiple axes of evolution, or the deskbound iMac? In truth, it might be even closer to a device which I didn’t mention in the list above: the Apple TV.

Like the ATV, the HomePod has a limited interface (via a remote, or by voice), and in general once put somewhere it stays there essentially forever. The ATV has hardly evolved at all – there are a couple of varieties (4K/not 4K) and storage variants, but its onscreen interface is unlike anything else that Apple does. That’s been forced by the limitations of interactions with a TV screen, which one typically views from across a room, and that seems to have limited what it can do.

There has been no evolution of size or colour, and little on price (aside from selling the older model at lower cost). The competition from lower-priced rivals such as Roku, Google’s Chromecast and Amazon’s Fire Stick seems to have kept Apple stuck upmarket, and guarding its content (TV and movies bought on iTunes) jealously: you can’t get them on any of those three rivals without some DRM-fighting shenanigans.

There are signs of the HomePod taking up the same position. You can’t stream Apple Music on the Echo (though Amazon says it’s “open” to it) or Google Home. It’s possible Apple is going to treat the smart speaker market as being like the TV set-top box market – one to be fought over rigidly. Possibly that’s what caused the delay in its initial release: big internal fights over its future trajectory, for these things are all mapped out a couple of years ahead before the first product gets out of the door. (For example, iPhones are designed at least two years ahead.)

But I think that to make the HomePod as “closed” as the Apple TV would be a mistake, and given the way that other successful Apple products have evolved – different shapes and sizes and price points (to fit in with the way that people live their lives), greater software capability (to make the product indispensable, not just nice to have) – I’d expect to see more colours of HomePod, and lower-priced ones too.

It took Sonos years to diverge from its high-end music amps down to the Sonos One, but it’s the latter that was the hit because it found the sweet spot on price. The HomePod is more versatile than the Apple TV because it has more functions than just displaying content on a screen. It’s a voice-driven speaker, and that has lots of implications.

Conclusion

So that’s my thinking: adding Spotify is an open goal, HomePod 2 is a certainty, and we could see smaller HomePods in time if Apple decides that this is a market which is worth winning, rather than just taking part in (the latter being its approach with the Apple TV).

But the early sales numbers? They don’t tell us a lot. Because to lean on those as telling the story means to ignore the ironclad rule of Apple products: the first is the MVP. It’s the ones after that which tell you the trajectory of the device.

How to recover when Apple Numbers says a file “can’t be opened for some reason”

Do not use this as an error message
Ever wondered what the worst error message you could encounter might be? This ranks pretty highly.

Prologue: backup

First of all, remember how people always told you to take backups, rather as you were advised to wear sunscreen? Well, they were right. Bear that in mind as I take you through on a journey of mild technology pain.

The high: Sierra

Having not seen any reports of gigantic showstopping bugs in the upgrade to Mac OS Sierra, I took the plunge the other day. Things were going fine. Everything worked. Nothing had crashed. Then I updated Numbers from 3.6.2 to 4.0, whose “new” features are apparently collaboration – and nothing much else.

Having done that, I tried to open one of my most-used spreadsheets, into which I have poured years of experience and hours of analysis. I’d had it open before the update, but (I think) had closed it before updating. (Whether it was open or not is immaterial; some other spreadsheets were open before the update and opened fine afterwards; some were closed before the update and opened fine afterwards; some were closed before and wouldn’t open afterwards.)

I was met with this response:

Screenshot 2016 09 26 15 06 13

The low: Numbers

The spreadsheet can’t be opened “for some reason”?? What sort of error message is that??

But at least it offers the option to “Browse all versions”, which should be stored in iCloud, where the spreadsheet itself is stored. You then go into a Time Machine interface, and get this:

Screenshot 2016 09 26 15 07 23

It’s “unable to open version”. This happens no matter how far back you want to go. You can try with lots of “versions”. Or you can realise you’re onto a lost cause and give up. At which point the “Time Machine” interface resolves itself into a rectangle, in which you find this message:

Screenshot 2016 09 24 20 57 46

Well, thanks a lot. “For some reason.” How this ever got past any sort of quality assurance I cannot imagine. Did the engineer/s assign an out-of-bounds error code to the problem, and the operating system can’t decide what to say and so falls back to “for some reason”?

This is a giant screwup

Whichever; it’s a terrible, terrible experience for the user. You’re left unable to open the file, with no idea what has gone wrong, and no clues how to progress. If you had really valuable stuff in here, and no means of rolling back, you would be absolutely furious – justifiably so – with Apple.

Tracing the error

What has gone wrong here? You can dig into iWork files (Numbers, Pages, Keynote). They’re “packages”, which means that they’re folders disguised to look like files. Control-click on the file and you can “view package contents”, which in the case of this spreadsheet looks like this:

Screenshot 2016 09 26 15 34 49

Turns out that all the meat is in “index.zip”. I made a copy on my Desktop and unzipped it:
Screenshot 2016 09 26 15 36 43

That’s only a few files; the “Tables” folder contains 523 items. Which of these hundreds of items is at fault? One? Two? Two hundred? There’s no way of knowing. Given that none of the previous versions will load under this version of Numbers, it doesn’t matter how many of the files are screwed. You can’t get there from here.

Why you love your backups

I did try to get around this. Believe me. On an iPad (which hadn’t updated to the equivalent newer version of Numbers) I tried opening the original spreadsheet.

Opened fine.

Oh. So I tried AirDrop to send the can-be-opened-from-iCloud spreadsheet from the iPad to the Mac. The AirDrop worked, but the Mac wouldn’t open it – same message as before. On the iPad, you can also export the file: your options are Numbers, Excel, PDF, or CSV.

Export in Numbers and AirDrop? Didn’t work.
Export in Excel and AirDrop? Worked – except that the various tables that had been on a single sheet were split out into separate sheets. Non-ideal.

So the iPad route wasn’t quite right.

But I wasn’t finished yet. Did you notice how I mentioned backups? Before upgrading, I had made a backup of my hard drive using SuperDuper! (highly recommended).

So I plugged in my backup drive – I’m always careful not to overwrite it until I’m confident a big OS update hasn’t screwed anything – and dug around for the old version of Numbers (v 3.6.2), and put that back in.

Open Numbers 362, try to open spreadsheet.

It opens. No muss, no fuss.

Worse than error messages: no error messages

In many ways, this is even worse. What’s the situation here? We have a newer version of Numbers on the Mac which cannot open an untouched version of a spreadsheet that the older version can open.

Together with the colossal stupidity of “for some reason” as an error message, a new version that randomly can’t open an old spreadsheet (but is fine with many others), even while the old one can, makes one think that whoever is in charge of Numbers, or iWork, isn’t getting it right.

A lot of it is down to the error message. If it said “because two of the files are corrupt” you might begin to understand. But of course it can’t be that, because the old version can read it. “Some reason” sounds vague – is vague – but in a sense, it’s accurate. Whatever the reason for being unable to open this file is, it’s quite elusive. I had initially thought that it was something to do with picture embeds, but the problem persisted when I got rid of those. (There’s nothing in the Console app about it, so Numbers clearly doesn’t want to share whatever its discomfort is with the file/s.)

Anyway. Having got the old version of Numbers installed, I could now open the old spreadsheet. Fine. I’ll stick with that, I thought.

The morning after the night before

Problem over, you think? Not at all. On returning to the iPad the next day, I found it had updated to the newer version of Numbers – the one with collaboration.

Guess what? That’s right: the iPad version no longer opened the old spreadsheet.

Computing often has these moments – when you feel as though you’re standing on a very rickety rope ladder across a gigantic chasm, halfway from each side, with little prospect of reaching either side safely, yet obliged to go in one direction or the other. The previous day I could open the spreadsheet on the iPad, but I couldn’t get it safely back to the Mac. Now I could open it fine on the Mac, but I couldn’t get the iPad to read it. Not really the world of device-independent operation that one dreams of.

But but but! There is a solution on the Mac. You can load the file on the old version of Numbers, and then in the File menu there’s the option to export it to a Numbers ’09 format. (No idea what’s so great/terrible about that.) Notice that that export option wasn’t available on the iPad.

Here’s what it looks like:

Screenshot 2016 09 26 16 14 52

Worth a try, I thought. And indeed it was. I named the files created that way with an “09” suffix, and suddenly they opened on the iPad – with all the tables and charts intact.

Update: another tactic which I didn’t try, but which might work (I haven’t had the same problem again) is to log in to icloud.com and try to open or upload or similarly wrangle the file there. Make sure FIRST you have a backup of it, on a USB key or other cloud service; the greatest mistake is working on the only copy of an essential file.

Teachable moments

This is one of the biggest WTF moments in an episode replete with them. I’ve reinstalled an older version of Numbers, and exported to an even older file version, in order to open the file on the newest version. It’s beyond bizarre.

Thankfully, it seems that there aren’t too many people having this problem; my own searches on the phrase “can’t be opened for some reason” turned up pretty much nothing. If we’re all lucky, then nobody will land on this page via a web search; you’ll all just be reading it for abstract interest, wondering how an operating system and a QA team can ever let “can’t be opened for some reason” be signed off as “OK for public consumption”. Apple puts a premium on its products and prides itself on its user interface; this, though, is one that got away, badly.

But what if you haven’t kept that backup of the Numbers app? In that case, I’m not able to offer any help. Perhaps you can find a friend who has a copy of the older version. Perhaps there’s a trustworthy download site. Perhaps you can get one by finding a Mac that hasn’t been updated and sending the version there. Perhaps you can rummage around in your Time Machine backup and reanimate the old version. Maybe you have a CD in your house with an older version. (Clutching at straws here, but I recognise that spreadsheets carry a lot of our lives nowadays.)

The simplest solution is not to update Numbers, which of course always feels like admitting defeat. The pragmatic solution is to export all your spreadsheets to the 09 format. The belt-and-braces solution (since this might be an iCloud problem) is to duplicate your spreadsheets on your hard drive, and export each into the 09 format – then you have three copies of them.

Whichever – I hope it goes well. And I hope never ever to run into “some reason” as the explanation for why an essential piece of content can’t be accessed. Fix it, Apple.

The 2Q 2016 smartphone scorecard: players searching for an exit


Exit. Who’s next? Photo by Today is a good day on Flickr.

There comes a time in every former top-ranking sports player’s career when they have to accept reality: they’re not up to it any more. They keep getting beaten by people whom they once would have trampled; what should have been easy wins are now struggles, or upsets. Eventually, they accept the reality everyone else has already seen: it’s time to exit.

And now we’re seeing that happen in the smartphone market. This isn’t really about sales of iPhones being down year-on-year – though they are, for the second quarter in a row, and though in the previous quarter Apple managed to keep its handset ASP (average selling price – calculated by total handset revenue divided by the number of handsets) up, in this quarter it was substantially down, below $600 for the first time since 2Q 2014.

But more generally, this is the quarter where China really began to muscle into the top ranks of Android OEMs – and all the players who used to be the big names there are inching towards the exit. The problem for the big-name Android OEMs is that, because it’s Android, they’re replaceable. Android on one handset is quite a lot like Android on another. But an Apple device, and its integrated software, is sui generis.

Numbers for all

So here are the numbers showing how that replacement is going. The list below is all in diminishing size of handset shipment volume. Other data sometimes has to be estimated, and in the case of Huawei, OPPO and vivo you’d have to be in one of the big analyst camps to know what their ASPs and hence revenues are, and you might have to be at the companies to know whether they’re profitable.

Standout elements from the quarter: Sony made a profit! (Even as it dwindled.) Lenovo kept shrinking; Apple’s ASP fell; Samsung trundled on; LG made more losses (the G5 flagship essentially sank); Microsoft barely turned up.

Q2 2016: the smartphone scorecard

* denotes estimate: explanations below

Company Handsets
(million)
Revenues Handset
ASP
Operating
profit/loss
Per-handset
profit/loss
% profit/loss
Samsung 77.0 $22.61bn $275.64* $3.75bn $48.66* 16.59%
Apple 40.4 $24.05bn $595.26 $6.71bn* $166.09* 27.9%*
Huawei 32.1 $7.06bn* $220 positive? positive? positive?
OPPO 22.6 $4bn?? $177* positive? positive? positive?
vivo 16.4 $3.7bn?? $225.60* positive? positive? positive?
ZTE 14.7 $2.5bn?? $170* ?? ?? ??
Xiaomi 14.5 $2.28bn* $150 negative? negative? negative?
LG 13.9 $2.88bn $207.52 –$177m –$12.73 –6.15%
Lenovo/
Motorola
11.3 $1.71bn $150.97 –$163m –$14.42 -9.53%
Sony 3.1 (not a misprint) $3.64bn $582.26 $4.03m $1.30 0.11%
HTC 2.3* $0.5bn* $217.39* –$128.50m –$55.87* -25.7%
Microsoft
Mobile
1.2 (not a misprint either) $0.23bn* $190.80* –$45m* –$38* –19.56%
Everyone else 135.4m

Assumptions:
Samsung: 6m tablets sold for $175 ASP at zero profit; 11.4m featurephones sold for $15 ASP at zero profit. (For every $1 fall in featurephone price, smartphone ASPs rise by $0.14 – so with zero featurephones and 6m $175 tablets, smartphone ASP would be $277.84. For tablets, every $5 rise in ASP lowers smartphone ASPs by $0.38 – so if tablets were free and there were no featurephones, smartphone ASPs would be $291.37. It isn’t a huge difference; tablets and featurephones are together generate about $880m, or less than 5% of overall mobile revenues.)

Apple: operating profit calculated at the historic figure of 27.9% (derived from multiple financial analysts). Might have been lower or higher – the 6S range maybe costs more to make than the 6 range, but there’s the SE range which might be cheaper because less retooling needed.

Huawei, OPPO, vivo, ZTE, Xiaomi: ASP figures all estimated, based on their perceived market power

How do I calculate the revenue figures (and hence ASPs) for OPPO, vivo, Xiaomi? According to According to Strategy Analytics,

Global Smartphone Industry revenues declined by -5% YoY in Q2 2016, due to softening of volumes. Apple was followed by Samsung, Huawei, Oppo and vivo from a revenue perspective. The report also captures the Wholesale Average Selling ASP’s for all major vendors across six regions. ASP’s in the quarter declined by -6% globally.

So if Oppo and vivo were bigger than Sony, they must have done more than 3.64bn. (Xiaomi must have been less than them too.) I’m guessing they weren’t that much bigger. For Huawei, which like those two doesn’t release revenue figures, I’ve estimated an ASP (up from the previous quarter) and generated the revenue figure from that.

LG: assume tablet sales were minimal, and had zero profit.

HTC: given that it now sells the Vive headset too, though not in large numbers (certainly not millions), it only takes a small adjustment from the overall revenue.

Microsoft Mobile: Microsoft gave figures for featurephone sales, of 9m; assuming an ASP of $15 for those and gross margin of $5 each (as before) gives the featurephone revenue. Assume the same manufacture cost as before, and you get zero gross margin; even with zero sales/marketing and R+D, you get a negative margin.

Rampant deflation

Everyone’s seeing price declines, which is what you’d expect in a growing market where you also have Moore’s Law and scale coming into play. But this is barely a growth market. Smartphone shipments were up just 0.26% year-on-year. When you look at the trend over the past nine years, we’ve really hit a wall here:

Smartphone growth year-on-year.png

The red line shows the four-quarter moving average, and that’s clearly down. What that suggestion of slowdown doesn’t quite tell is how the market is diverging. The premium end was long ago saturated: people who could buy expensive phones did so, but now there’s no new market to sell into in the developed countries – and consequently the US, China and western Europe are expected to see slowdowns, and even reductions in volume, this year (per IDC). The action, such as it is, will be in emerging markets such as the Middle East, Africa and Latin America – though even they will only see growth of about 5.6%.

In such a world, the companies which initially made Android a Huge Thing are beginning to head for the exit. HTC built the first Android phone. Sony had to go Android (as Sony Ericsson) because it was losing money hand over fist. LG had to figure out how to make smartphones quickly, because its featurephone business was being destroyed.

Now though they’re seeing those be destroyed all over again. You can see the numbers above. And here’s a graph of how pretty much everyone is seeing sales growth compared to the smartphone market turn negative (so if the market grows 10% and they grow 5%, they’re falling behind):

Smartphone OEMs: growth against the overall market

Year-on-year shipment growth measured against the overall market

But I’ve been collecting the revenue and profit/loss numbers too (and publishing them) going back to Q4 2014. That’s seven quarters. What if you add that up?

Seven quarters of hurt

Here’s the lineup when you calculate it over seven quarters:

Seven-quarter smartphone scorecard covering Q4 2014 to Q2 2016 inclusive

(all estimate elements as above)

Company Handsets
(million)
Revenues Handset
ASP
Total operating
profit/loss
Per-handset
profit/loss
% profit/loss
Samsung 555.4 $158.70bn $285.74 $17.95bn $32.32 11.31%
Apple 401.07 $263.59bn $657.22 $73.62bn* $183.56* 27.92%
Xiaomi 116.92 $18.62bn* $159.25 ? ? ?
LG 102.75 $21.58bn $210.02 –$428.39m –$4.17 –1.98%
Lenovo/
Motorola
121 $17.44bn $144.13 –$1,114m –$9.26 –6.39%
Sony 47.8 $17.13bn $358.37 –$908.33m –19.00 –5.30%
HTC 26.1 $6.45bn* $247.13 –$717.51m –$27.49 –11.12%
Microsoft
Mobile
41.3 $5.76bn $139.47 –$2,621m –$63.46 –45.50%
(Huawei, OPPO, vivo and ZTE aren’t included because I don’t have figures for them over the period; and there aren’t any financials for any of them.)

This bears out a truth that is borne out again and again by analyst reports into best-selling handsets, brand loyalty, and customer satisfaction: these days it’s a two-horse race, Apple and Samsung.

Xiaomi is an unknown, financially. But all the rest are losing money hand over fist, and as Vlad Savov wrote in a terrific piece entitled “Android OEM death watch: Sony, HTC and LG edition“, you do wonder why they soldier on:

The Android ecosystem has never been more diverse than it is today, but I suspect that what we’re witnessing now is a peak from which the basic economics of a maturing smartphone market will rapidly drag us down. Niche players like Nextbit, Vertu, and BlackBerry might survive thanks to their low volume of sales and correspondingly limited costs. But the big names we’ve known for so long, the Sonys and HTCs of this world, seem fated to fade from view.

I think this is absolutely right. Look at those numbers: why is LG putting up with a division that has lost money, and shows no sign of stopping? Although Sony made money this quarter, it’s fading from view. Lenovo’s ASP is so woefully low that it’s an obvious target for every up-and-coming Chinese OEM. (I was recently contacted by Meizu, which is launching into the Asian market: yet another rival for the uncommitted phone buyer.)

It isn’t even as if these struggling companies have scale: Sony has only sold 12% as many phones as Apple over the period (and 8.6% as many as Samsung, which might be the better comparison); LG has managed a more respectable 18.5% of Samsung’s number, but it’s losing money on them, over seven quarters.

Sure these companies have a lot invested in this business; you can’t just shut down a smartphone business like closing a corner shop. There are contracts, staff, distribution deals. But you can edge out, which is what Sony seems to be doing as its range and distribution shrinks. Will LG follow, or is its rivalry with Samsung in Korea just too strong to let it ever let go?

I’m honestly puzzled by companies which tot up millions in red ink and decide it’s fine to carry on. Microsoft is clearly getting out (who wouldn’t, looking at those margins) but how can Sony or Lenovo look at their returns and feel they’re OK? That’s the puzzle here.

Sure, there’s lots else going on: Apple’s falling ASPs and falling sales point to the saturation of the markets. Equally, the cheap hardware is getting really good – the Shenzhen effect, as volume of production means that the only distinguishing thing is software and, to a lesser extent, chip design ability. (Apple, Samsung and Huawei stand alone here.) I’m certainly impressed by Huawei, which offered a dual-lens camera on the new P9 which has a neat refocus/re-aperture effect, well ahead of Apple.

(Huawei’s problem is it doesn’t have a coherent strategy: it offered “3D Touch” before Apple too – as did ZTE – but hasn’t followed through; only the latest P9 still has it. Will the dual lens offering spread to the rest of its offerings, or fall by the wayside as happened with HTC’s dual system on the M8 in 2014?)

In search of the lost profits

What then happened to all the profits that HTC, Lenovo, and Sony used to earn? Simple: eaten by Samsung, Apple, and Chinese rivals. The growth of companies like OnePlus, Meizu, and of course Huawei, vivo and OPPO and (less so) Xiaomi means the potential for scale falls away from those already in the market.

However it can take a while for these effects to become visible. HTC’s sales peaked in 2011; LG’s, Sony’s and Microsoft’s in the second half of 2014. From around that time, all the Chinese OEMs began growing rapidly, first in their home market, and then India; and in Huawei’s case, Africa, Europe and the US.

Late exit

Apple looks to have peaked in 2015 – but it has a solid ecosystem and so many users that any erosion would take a long, long time. That’s in stark contrast to every Android OEM, which (as even Xiaomi is finding out) is disposable and replaceable.

But it can take a long time. BlackBerry’s handset sales peaked in 2010, and yet it’s still going. (Though will John Chen finally announce the company is getting out of hardware at the quarterly results on September 28? One to watch.) HTC has been ebbing for a while, for example. Sony has begun withdrawing to Asia. LG is being pushed aside in Europe by Huawei.

The only question is when some of the executives at these companies will finally ask why they’re still trying to play a losing hand. There comes a time for the players to leave the game. When is it?

The iOS 10 changes that actually matter: ad tracking, camera changes, “press to unlock” and more

It’s that time of year! Photo by fldspierings on Flickr.

It’s iOS 10 release day, and everyone and their best friend is doing “10 [geddit??] things you need to know about iOS 10”. Most of them aren’t worth knowing, because

• you’ll discover them immediately when you update
• they’ve already been announced.
(Though I do love “how to update to iOS 10” stories. TL;DR: do an iCloud backup, or an iTunes backup, and then press the “software update” button in Settings → General → Software Update. Then wait while the internet falls to its knees.)

Let’s instead go a little deeper into the new OS, and point out the elements which you might not spot at first but which could potentially make a significant difference to your experience. I’ve been using iOS 10 through the betas on an iPad Pro and an iPhone SE, so that’s both the phone and the tablet experience.

Ad tracking

Remember how Apple introduced “Content Blockers” in Safari in iOS 9, and in parallel introduced “Safari Web View” for all apps – which meant simultaneously that you could install a mobile adblocker, and that that adblocker could be used in any app which opened web pages (such as Tweetbot, my weapon of choice for Twitter)?

The ad business had a collective fit over iOS adblocking, and it’s ready to have a second one now. Dean Murphy, who profited handsomely (and rightly so) from his Crystal adblocker, points out that with iOS 10, Apple is taking your ability to block targeted advertising one step further, even if you don’t want to install an adblocker.

On his blog, Murphy explains that “Apple is changing the way that the ‘Limit Ad Tracking’ setting works in Settings → Privacy → Advertising, and it seems to be causing a mini storm in a teacup among the adtech world.”

As he points out, while Apple got rid of the “UDID” (Unique Device IDentifier) for iPhones some time ago, in iOS 6 it provided the IDFA – ID For Advertisers. If you turned on “Limit Ad Tracking”, you’d be given a random new IDFA, plus a flag would be set telling advertisers you didn’t want to be tracked. But guess what! Advertisers don’t seem interested in saluting when that’s run up the flagpole.

So, says Murphy:

In iOS 10, when you enable “Limit Ad Tracking”, it now returns a string of zeroes. So for the estimated 15-20% of people who enable this feature, they will all have the same IDFA instead of unique ones. This makes the IDFA pretty much useless when “Limit Ad Tracking” is on, which is a bonus, as this is what users will expect when they enable the feature. These users will still be served ads, but its more likely they will not be targeted to them based on their behaviour.

This didn’t stop one guy over at Ad Exchanger wailing that Apple is “giving consumers a way to opt out of advertising altogether” (it’s not) and that people shouldn’t have the right to opt out of advertising. Which is quite a stretch. Murphy has some more figures on how much the adtech people aren’t losing by this move. But it’s still a good one by Apple, which fits well with its privacy story.

Open the camera, Hal

So you lift up your iPhone to wake it – did every other article mention it now has “lift to wake”? Yes they did (it’s triggered by the orientation sensors) – and now you have a screen with three little dots at the bottom. You’re in the middle; swipe right (that is, pull from left to right) and you get a ton of widgets.

But swipe left (pull right to left) from the home screen, and you now get the camera. This is such an obvious and timesaving move that it’s amazing it has taken four iterations of the “swipe” motif introduced with iOS 7 (7, 8, 9, 10 – that’s four) to get it right.

Cameralock
The Lock Screen in iOS 10 now shows you that the camera is off to the right (ie, swipe left). My arrows and text, obviously.

Having the camera a swipe left from the lock screen is quick, easy and a hell of a lot more convenient than having to swipe up, as has been the case since Apple introduced that route to the lockscreen camera in iOS 5.1 in March 2012.

You can understand why iOS 7 didn’t change that. People had had less than 18 months to get used to “swipe up” when iOS 7 was released in September 2013. Apple doesn’t do UI changes all at once. It taught people how to swipe, then a year later it introduced bigger screens where they’d need to swipe. So we’ve now had “swipe up for the camera” for just over four years. But it’s logical, and faster, to swipe left: it’s a shorter distance, it’s more natural for your thumb (I always found “swipe up” a struggle if I had the phone in one hand), and that screen on the right is unused virtual space.

So all hail the new way of getting to the camera. Though in iOS 10’s first few weeks you’re going to hear lots of people saying “how do you get the camera?” and probably swiping up to Control Centre – though the camera is there. But be the helpful one, and show them the side swipe.

Not quite better: Control Centre/r access

I don’t know about you, but if I’m typing something in Messages and need to bring up the Control Centre, it’s akin to an Olympic event to raise it first time. More often I hit a few random keys first, and have to retry.

Pulling up Control Centre is tricky
Pulling up Control Centre is hit-and-miss if you have a keyboard running

This doesn’t seem any better in iOS 10; I think it needs some sort of border below the keyboard. It’s a difficulty that seems to have come in with iOS 7, so perhaps in a couple of years..

The other change in Control Centre (I’m going to use the British spelling dammit) is that it’s now split into two panes, which you swipe between as needed: non-audio stuff in the left, audio stuff (such as music playback and audio output direction) in the right.

Control centre
The new Control Centre in iOS 10 is split across two screens – swipe between them. It remembers which one you last accessed.


Update: I’m told by Ravi Hiranand that the Home app gets its own Control Centre screen, if you have it functioning. As I’ll explain below, I didn’t so I didn’t. (End update.)


This is another thing that will have lots of people saying “hunh?” as they try to get used to it; since iOS 7 (when it came in) it had been all in one place, but with the introduction of Night Shift on the iPhone 5S and above, it was all getting a bit crowded. One pleasing little touch: when you touch the volume slider to change it, the speaker buttons at either end light up. (Update: Marc Blank-Settle says this was already in iOS 9, and he’s right, it was. This is what makes software reviewing tough: you notice something for the first time just when it has always been there.)

Press to unlock

The most subtle change is that it’s no longer enough to rest your thumb (or other finger) on the TouchID button to unlock the phone/tablet. It certainly used to be the case that it was, but on the 6S range in particular this could mean that if you picked the device up to see what was on the notification lock screen, and particularly if you used a phone, chances were high you’d unlock the thing and miss what you actually wanted to see.

Now you have to actively press on the button to both identify yourself and to open the lockscreen. This also fits in with the new Taptic buttons on the iPhone 7 range, which don’t actually move, so that you have to tell them you’re there by actively pressing.

This seems like a trivial point, but in the first few weeks you’re going to hear lots of people whose muscle memory is built around resting their fingers on that button who don’t understand why doing that doesn’t unlock it. On such small things are perceptions of ease of use built.

However you can turn this off, at least on TouchID devices. You have to go to Settings ▶️ Accessibility ▶️ Home button, and there you’ll find “Rest Finger to Open” as an option. Lots of things are hidden down there in “Accessibility”.

Home button: accessibility options

You can revert to the old TouchID behaviour via Accessibility.

Deleting apps

Sure, you can delete the stock apps. Don’t bother. You’re not really saving any space. And that app you downloaded to replace it? Takes up more room and doesn’t get system-wide benefits.

Mail, now with filters

Speaking of stock apps, iOS’s Mail is creeping towards a vague parity with what OSX’s Mail could do in about 2000, when the latter was still in beta. Though it is way easier to triage email with swipes on a touchscreen than a keyboard and mouse.

In iOS 10, you can filter email, via a little “filter” icon at the bottom of the screen: tap it to change between filter criteria.

iOS 10's mailbox filter

You can filter mailboxes by Unread, Flagged and a few other criteria: tap the icon

We’re still stuck, though, with a very limited number of ongoing filter systems: you can’t set up a “smart mailbox” based on a phrase, for example, even though OSX has had that forever. Here are the options for filters:

Mailfilters

This “what does that do?” thing about the filter icon is something most people will probably come across by accident. It’s helpful, but Mail is still some way from being a powerful app. It’s still only useful.

Maps: you can get there from here

In iOS 9, Maps began getting public transport details, and that has quietly been enhanced over the past year. The key change is that it’s much more sensibly laid out: search is on the bottom, and location plus settings are in the top right.

Even better: search is coordinated among devices, so that if you do a search on your tablet, those searches will also be on your phone. (Finally.)

Ios9 10 maps
The Maps app is improved in iOS 10 (on right) over that on iOS 9 (left): it now puts search in a more accessible location at the bottom, remembers searches from other devices, and can offer ride-sharing app routes.

Notes, collaborate

Apple made something of collaborative editing coming to iWork at the iPhone introduction last week, but it’s offering exactly that in the new Notes: type up a note, and you can choose to share it with someone, who will see the changes that get made, and be able to edit it too.

Obvious use: shopping lists. As long as the person shopping (or suggesting shopping) doesn’t go out of range of data.

Under the hood: Siri and machine learning

The range of things that Siri can do hasn’t changed much in this update – at least, not visibly – but it is improving. And what’s really going to change is that it will be open to some developers, for a limited number of functions. I didn’t see any in the betas (you’ll have to see what developers do with it).

Photos are meant to get a tonne of machine learning. But it’s principally facial recognition, and the “Memories” function is – for me at least, having few photos with location tags – so-so. Yes, it’s nice to have photos collected together from particular days, but this isn’t Google Photos with its ability to find “photos of dogs” from an unlabelled corpus of pictures.


Update: Nick Heer points out that it does show you photos that match a keyword (singular is best). It hasn’t done this on the iPhone SE, but on checking my iPad and doing a search in the photos for “horse” I find that yes, he’s correct. iOS 10 calls them “categories”. You can discover what categories it has available by typing a single letter of the alphabet into the search box, and seeing what unravels. (Perhaps someone will make a list. What am I saying? For sure someone will make a list. And look – here it is.)

Photo search on iOS 10

Type a letter, get a list of categories


[end update]


Then again, the pictures sit on your phone, so possibly over time the capability will be there. (We simply don’t know how much processing power per photo is needed for Google Photos’ identification system, nor how many examples it has to see to hit its training targets.)

Finally: home screen widgets

Apple hasn’t gone as far as Google in Android, and nothing like as far Microsoft in Windows Phone, in terms of what widgets are able to do as a layer over the home screen. They don’t dynamically update while you’re not looking; they hurry to do it when you swipe across. Saves on background processing. But you can edit them, as before.

Home screen widgets on iOS 10

Yeah, that’s all

Sure, there’s a ton of other stuff. There’s:
• the update to Messages (annoy your iOS 10 friends by sending them “Happy Birthday” messages) which now means that it’s becoming something of a platform.
• Apple Pay on the web – possibly that should have been a feature above, but I never tried it out.
• Home. As an app. I couldn’t find any products that actually hooked into this, and I suspect it might be a while before I do. (Ravi Hiranand says Home found his Philips Hue light automatically, and “works better than the original app”.)
• Subtle thickening of fonts, so that text is easier to read. This is system-wide, and very noticeable in the re-thought Apple Music and in Maps.

Finally

So – should you upgrade to iOS 10? Don’t you love how this question is asked as if you might not? You’ve read a whole piece about it that you didn’t have to. You probably will. And yes, you should benefit. Some of the touches are clever, and some are overdue, and some are essential. But it’s all about getting the device out of the way.

The thing you’ll notice the most? Pressing the Home button. It’ll bug you gently for a couple of weeks. Then you’ll forget it. And after that, you’ll notice the Maps app’s improvements. And those you’ll probably forget; can you remember what it was like before? Hardly anyone can.

That’s the way with software: you change things wholesale, and within a few months nobody could draw what the old thing looked like. Believe me, though, if you came across a device running iOS 6 or earlier, you’d be amazed at how… primitive it looks. Pundits might have bitched about iOS 7, but it’s been a wholesale improvement in user interface.

One could wish for better, smarter AI, but that might have to wait a few years for more power on the device. Even so, the “Siripods” (aka AirPods) point towards Apple wanting us to have a closer verbal relationship with our devices.

Start up: Theranos’s last days?, Samsung’s water-unproof S7 Active, the Pokemon Go craze, and more


Planning a crewed lunar mission? There’s some code for you on Github! Photo from Nasa Goddard Space Research Centre 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. Apply topically. I’m charlesarthur on Twitter. Observations and links welcome.

Theranos dealt sharp blow as Elizabeth Holmes is banned from operating labs • WSJ

John Carreyrou, Michael Siconolfi and Christopher Weaver:

»Silicon Valley startup Theranos Inc. is fighting for its life after regulators decided to revoke its license to operate a lab in California because of unsafe practices and to ban founder Elizabeth Holmes from the blood-testing business for at least two years.

The sanctions were laid out in a letter to Theranos released Friday by the agency that oversees US labs, the Centers for Medicare and Medicaid Services. Theranos said it is still seeking to resolve its issues with the regulator.

One sanction, a monetary fine of $10,000 a day until all deficiencies have been corrected, goes into effect July 12. The most serious sanctions, such as the ban of Ms. Holmes, won’t go into effect for 60 days.

If it fails to reach a settlement with the government, Theranos’s options are limited. Almost any course it takes will dramatically reshape the company that Ms. Holmes founded in 2003 as a Stanford University dropout and grew to a valuation of more than $9 billion in a 2014 fundraising round.

«

The first version of this that I saw at 0643 BST (0143 EST) Friday had a single byline (Siconolfi’s) and began more tamely: “US federal health regulators dealt a major blow to Theranos by banning founder Elizabeth Holmes from operating a blood-testing laboratory for at least two years and pulling regulatory approval for the company’s California lab.”

Clearly, the addition of two reporters and 18 hours sharpened up the intro (“lede” in the US; first paragraph to everyone else) quite a bit. And gave them time to put a very spooky picture of Holmes at the top.

And Theranos indeed looks cooked.
link to this extract


DNA sequencing costs plotted over time • National Human Genome Research Institute (NHGRI)

»

To illustrate the nature of the reductions in DNA sequencing costs, each graph also shows hypothetical data reflecting Moore’s Law, which describes a long-term trend in the computer hardware industry that involves the doubling of ‘compute power’ every two years (See: Moore’s Law [wikipedia.org]). Technology improvements that ‘keep up’ with Moore’s Law are widely regarded to be doing exceedingly well, making it useful for comparison.

In both graphs, note: (1) the use a logarithmic scale on the Y axis; and (2) the sudden and profound outpacing of Moore’s Law beginning in January 2008. The latter represents the time when the sequencing centers transitioned from Sanger-based (dideoxy chain termination sequencing) to ‘second generation’ (or ‘next-generation’) DNA sequencing technologies. Additional details about these graphs are provided below.

These data, however, do not capture all of the costs associated with the NHGRI Large-Scale Genome Sequencing Program. The sequencing centers perform a number of additional activities whose costs are not appropriate to include when calculating costs for production-oriented DNA sequencing. In other words, NHGRI makes a distinction between ‘production’ activities and ‘non-production’ activities. Production activities are essential to the routine generation of large amounts of quality DNA sequence data that are made available in public databases; the costs associated with production DNA sequencing are summarized here and depicted on the two graphs.

«

We’re good at sequencing, but less good at understanding what genomes tell us. That hasn’t improved as quickly.
link to this extract


Samsung Galaxy S7 Active fails Consumer Reports water-resistance test • Consumer Reports

Jerry Bellinson put not one but two successive Galaxy S7 Actives into the equivalent of five feet of water for 30 minutes. They didn’t make it:

»For a couple of days following the test, the screens of both phones would light up when the phones were plugged in, though the displays could not be read. The phones never returned to functionality.

Samsung says it has received “very few complaints” about this issue, and that in all cases, the phones were covered under warranty.

“The Samsung Galaxy S7 active device is one of the most rugged phones to date and is highly resistant to scratches and IP68 certified,” the company said in a written statement. “There may be an off-chance that a defective device is not as watertight as it should be.” The company says it is investigating the issue.

The Active is one of three versions of the Samsung Galaxy S7, and it was the only one to fail our water-immersion test.

«

Could be two lemons, but that doesn’t speak well to the quality control. Waterproofing seems to be a popular feature with testers, at least, because you can.. test it.
link to this extract


Teen playing new Pokémon game on phone discovers body in Wind River • County 10

»Shayla [Wiggins] tells County 10 that she woke up this morning and began playing a game on her cell phone called Pokémon Go, an augmented reality game that encourages the user to capture as many Pokémon as possible. “The Pokémon are all over Riverton,” she said. Shayla showed County 10 the game on her cellphone which displayed a map of Riverton where these Pokémon are located.

“I was trying to get a Pokémon from a natural water resource,” she explained. She said that she jumped over the fence to go towards the river in search of a Pokémon.

“I was walking towards the bridge along the shore when I saw something in the water,” Shayla said. “I had to take a second look and I realized it was a body.” She said the figure was floating about three feet from the shore and it looked like an average size male body. She reports that she thinks the man was native, but she can’t be certain. She saw a black shirt and black pants. All of the body was reportedly submerged except for part of his back and butt.

«

This game is taking people into bizarre situations. There are even reports of people setting up armed robberies (unproven) and using it while on patrol against Isis with Kurdish militias (verified). I’m amazed; Pokemon seems to me so transparently stupid – a set of Top Trump cards – that I’m amazed anyone over the age of 12 indulges in it. And yet…
link to this extract


A malicious ‘Pokémon Go’ app is installing backdoors on Android devices • Motherboard

Joshua Kopstein:

»wannabe Pokémon masters should take heed: amid high demand for the game as it slowly rolls out across the globe, security researchers have discovered a malicious version of the Pokémon GO app floating around that installs a backdoor on Android phones, allowing hackers to exploit Poké-hype to completely compromise a user’s device.

The security firm Proofpoint discovered the malicious application, or APK, which was infected with DroidJack, a remote access tool (RAT) that compromises Android devices by silently opening a backdoor for hackers. The malicious app was uploaded to an online malware detection repository on July 7, less than 72 hours after Nintendo released the game in Australia and New Zealand.

To install it, a user needs to “side-load” the malicious app by disabling an Android security setting that normally prevents the installation of unverified third-party apps from “unknown sources.”

This is potentially a huge deal, since the game’s slow roll-out to different regions has led some impatient players to download the app from third-party websites instead of waiting for the official release on Android’s Play store, which requires side-loading to install. Proofpoint notes that several major news outlets have even provided instructions on how to find and install the app from a third party.

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link to this extract


Original Apollo 11 Guidance Computer (AGC) source code • Github

Lots of people are cloning it and improving it – just in case they, you know, need to pilot a lunar lander mission.
link to this extract


We need to talk about AI and access to publicly funded data-sets • TechCrunch

Natasha Lomas with a hugely important analysis:

»DeepMind says it will be publishing “results” of the Moorfields research [on eye disease] in academic literature. But it does not say it will be open sourcing any AI models it is able to train off of the publicly funded data.

Which means that data might well end up fueling the future profits of one of the world’s wealthiest technology companies. Instead of that value remaining in the hands of the public, whose data it is.

And not just that — early access to large amounts of valuable taxpayer-funded data could potentially lock in massive commercial advantage for Google in healthcare. Which is perhaps the single most important sector there is, given it affects everyone on the planet. If you don’t think Google has designed on becoming the world’s medic, why do you think it’s doing things like this?

Google will argue that the potential social benefits of algorithmically improved healthcare outcomes are worth this trade off of giving it advantageous access to the locked medicine cabinet where the really powerful data is kept.

But that detracts from the wider point: if valuable public data-sets can create really powerful benefits, shouldn’t that value remain in public hands?

«

Yes. Exactly. This is a key point which is being ignored: data is the necessity for Google and the British government is not seeking sufficiently clear repayment for it.
link to this extract


AI, Apple and Google • Benedict Evans

Quite a long musing on where we are with AI – which typically never quite arrives, because every time it does something smart (understands speech, identifies faces) we say “oh, that’s just computing“:

»A common thread for both Apple and Google, and the apps on their platforms, is that eventually many ‘AI’ techniques will be APIs and development tools across everything, rather like, say, location. 15 years ago geolocating a mobile phone was witchcraft and mobile operators had revenue forecasts for ‘location-based services’. GPS and wifi-lookup made LBS just another API call: ‘where are you?’ became another question that a computer never has to ask you. But though location became just an API – just a database lookup – just another IF statement – the services created with it sit on a spectrum. At one end are things like Foursquare – products that are only possible with real-time location and use it to do magic. Slightly behind are Uber or Lyft – it’s useful for Lyft to know where you are when you call a car, but not essential (it is essential for the drivers’ app, or course). But then there’s something like Instagram, where location is a free nice-to-have – it’s useful to be able to geotag a photo automatically, but not essential and you might not want to anyway. (Conversely, image recognition is going to transform Instagram, though they’ll need a careful taxonomy of different types of coffee in the training data). And finally, there is, say, an airline app, that can ask you what city you’re in when you do a flight search, but really needn’t bother.

In the same way, there will be products that are only possible because of machine learning, whether applied to images or speech or something else entirely (no-one at all looked at location and thought ‘this could change taxis”). There will be services that are enriched by it but could do without, and there will be things where it may not be that relevant at all (that anyone has realised yet). So, Apple offers photo recognition, but also a smarter keyboard and venue suggestions in the calendar app – it’s sprinkled ‘AI’ all over the place, much like location. And, like any computer science tool, there will be techniques that are commodities and techniques that aren’t, yet.

«

link to this extract


Exclusive: why Microsoft is betting its future on AI • The Verge

Casey Newton got to meet lots of people at Microsoft who are working on bots and AI:

»I meet with Kirk Koenigsbauer, corporate vice president of marketing for Office. He shows me a range of ways where intelligence is making Office easier to use. In September 2014 Microsoft introduced Delve, a kind of Fitbit for productivity that is included with Office 365. The app analyzes how much time you spend in email and in meetings, and highlights times on your calendar where you have extended periods of time to do more complicated, meaningful work. It tells you what percentage of people you sent an email to actually read it, and how quickly. It will suggest reaching out to colleagues that you haven’t emailed in a while. It even shows you response times for your colleagues, and for yourself.

If your organization lives in Google Apps, as do many big Silicon Valley companies, browsing Delve felt like a revelation. You don’t have to be a numbers nerd to find this kind of information useful. If you’re a manager, Delve can tell you at a glance how much time you’ve spent with each of your employees over the past week. This kind of intelligence isn’t as sexy as a general AI that anticipates your every need — but it’s here today, it works, and it makes Google Apps look like a neglected backwater by comparison.

«

1) Google Apps pretty much is a neglected backwater
2) would love to know if the statistics gathered by Delve actually have any meaning in the real world, or are just numbers collected because they can be.
link to this extract


Security Flaw in OS X displays all keychain passwords in plain text • Medium

Brenton Henry:

»This afternoon, a friend learned the hard way that you don’t let an unofficial company take control of your computer to provide “support”. However, it was what I learned that shocked me the most.

There is a method in OS X that will allow any user to export your keychain, without sudo privileges or any system dialogs, to a text file, with the username and passwords displayed in plain text. As of this writing, this method works in at least 10.10 and 10.11.5, and presumably at the least all iterations in between.

«

I tried his method; I had to click an “Allow” dialog for every single item in my keychain, which wasn’t a trivial number. So this exploit isn’t one to think deeply about. More to the point: what happened to his friend? Was it keychain-related?
link to this extract


How the Feds use Photoshop to track down paedophiles • Motherboard

Joseph Cox:

»The most innocent clues can crack a case. In 2012, a holiday photo of a woman and child holding freshly caught fish ended up being a key lead in a child pornography investigation.

Found within a cache of illegal, explicit material, the photo would eventually point detectives to a outdoor camping site in Richville, Minnesota, and result in the victims’ rescue, and suspect’s conviction in December 2012.

But first, detectives had to determine where the photo was taken. To do that, they cropped out the fish, sanitized the image, and sent it to Cornell University for identification, Jim Cole, the National Program Manager for Victim Identification at US Immigration and Customs Enforcement (ICE), an agency within the Department of Homeland Security (DHS), recalled to Motherboard in a phone call.

The university determined the species of fish, which was found in a particular region. Investigators then edited the suspect and victim out of the photo, Cole said, and distributed it to advertisers for camping grounds in the area, one of which recognized the location.

When detectives arrived, the same photo was on the wall of the camping office, Cole added.

“It’s all about making the haystack smaller, so we can find the needle,” he said.

«

A logo on a sweatshirt? A bottle of pills in the background? It can all contribute to cracking the case
link to this extract


Exclusive: Google is building two Android Wear smartwatches with Google Assistant integration • Android Police

David Ruddock has a strong and detailed rumour:

»The inevitable question with these Google smartwatches is “why?” I’m afraid I don’t have a concrete answer for you. But I can speculate. As Android Wear has evolved, manufacturer interest in it has not skyrocketed as Google likely hoped it would. At best, it appears to be holding steady. Once considered Wear’s strongest partner, LG has announced no new mainstream Wear device since the old Urbane last spring (the LTE is unashamedly niche with limited availability, and was heavily delayed). The number of new Wear OEMs announced lately has been modest, aside from a few niche fashion products that are unlikely to have a major impact on Wear’s distribution.

By building its own smartwatches, Google can implement exactly the hardware and features it believes will best demonstrate Android Wear’s capabilities.

«

Good luck with that. The OEMs aren’t doing it because they aren’t selling. (Unless they’re selling in China, in which case Google will have trouble too.)
link to this extract


Errata, corrigenda and ai no corrida: none notified

Start up: robocalling wars, form-filling frustration, Pakistan’s troll problem, Apple port death, and more


Something about this is going to change in September. But what? Photo by janitors 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 11 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Disruptive robocalling • Global Guerrillas

»Three months ago, I wrote up a worst case scenario for how the US could end up in a civil war this fall.  Unfortunately, nothing has changed.  The conditions that make the scenario possible are still valid.

In fact, in one way it has gotten worse:  one of the theoretical methods of disruption that I featured in the scenario was recently used in the real world.  In my scenario, robocalling was used to shut down polling places to skew election results and plunge the US into chaos.

«

So, how’s your day going so far?
link to this extract

 


Apple Watch is already a $10bn business • Above Avalon

Neil Cybart:

»Heading into this year’s WWDC, Apple Watch expectations were at a low. The most recent comments from Apple management about Watch sales being focused around the holidays implied Watch sales had slowed somewhat materially in recent months. Developer interest and buzz around watchOS was lackluster, and recent price drops introduced questions about customer demand.

Things changed following Apple’s WWDC keynote. It was clear Apple had no plans of slowing down with Apple Watch. More importantly, Apple was willing to make changes to Apple Watch software. As seen with the rethought user interface included in watchOS 3, Apple spent the past year studying how people were using Apple Watch. Friction points such as a clunky interface and little-used features, including Glances, were removed. Instead, Apple went back to the basics with a simpler interface and additional focus on Watch faces as the device’s most valued real estate. (Additional thoughts from WWDC concerning watchOS 3 are available here).

Some people interpreted the changes found in watchOS 3 as evidence that Apple admitted it was wrong with Apple Watch. I disagree. That type of interpretation not only ignores everything that Apple got right about Apple Watch, such as Watch bands, but also ignores reality. Apple Watch financials portray a different story. Apple Watch’s first year was not the disaster that many are now implying.

«

WatchOS 3 really is a lot quicker, and more useful, than the first versions. Cybart reckons more than 12m have been sold. By contrast, Android Wear downloads – which seem to be the correct proxy for Android Wear sales – are still below 5m.
link to this extract

 


Input masks: violating user expectations • ignore the code

Lukas Mathis:

»When designing forms, there’s a pretty deep chasm between the needs of the developer, and the needs of the user. Developers want structured, normalized data. Users want to enter data in whatever format suits them best.

Forcing people to enter structured data causes usability problems.

What do you mean, it’s not a valid phone number? Looks valid to me – except that the backend wants just numbers, no special characters, and isn’t smart enough to strip out all of the characters that the user has entered.

Commonly, designers try to solve this by telling people what kind of format data needs to be in. This can be done using placeholders that show example data in the correct format.

The problem here is that the placeholder disappears as soon as people start typing, so exactly when they actually need this information, it’s no longer visible.

«

And with credit card numbers, things get really annoying, as Mathis points out.
link to this extract

 


Pakistan’s troll problem • The New Yorker

Simon Parkin:

»Among many religiously conservative Pakistanis, [female lawyer Naghat] Dad said, there is a belief that women should not be using technology at all. “I could only use the Internet and my mobile phone while at work,” she told me. There are more than twenty-three million Facebook accounts registered in Pakistan, but in some cases, Dad said, “women who experience harassment on Facebook don’t want to make a formal complaint, as to do so is to admit to owning a profile.” As more women continue to join social-media platforms, the resistance to their presence has increased. Last August, a gang of men targeted a group of female doctors in Lahore, stealing photographs and private messages from their WhatsApp and Facebook accounts before demanding money. “The threat of disgrace made these professional women soft targets,” Shamsi said. “This on top of the battles they fight just for the right to work.” Dad’s organization has two staff members devoted to working on Facebook complaints, but she deals with the public herself, and she now receives more calls from women each day than she can handle.

In general, US-based social-media companies have been slow to address harassment on their platforms in different cultural contexts — and even, many would argue, in their own.

«

link to this extract

 


“OK Google…” • OK Google

It’s a list of the voice commands you can ask after “OK Google..” on Google’s systems. Would love to see something comparable for Siri.
link to this extract

 


The ultimate Apple I/O death chart • The Verge

Nilay Patel and Frank Bi:

»One of the most strongly-held arguments about Apple removing the headphone jack is that Apple has historically been first to drop a legacy technology, sometimes even before the rest of the industry is ready. Apple’s vertical integration, passionate userbase, and scale (both historically small and now immensely huge) allow it to push big changes in a way that few other companies can pull off. The floppy, SCSI, optical drives, VGA — all killed by Apple years before vanishing from the rest of the industry.

But how long does it really take Apple to kill legacy tech? We threw together a chart to map it out. (It would be fun to do this across the entire tech industry, but finding all that data seems virtually impossible. If you figure it out email me and we’ll run it!)

«

QWERTY still in use, though I guess that’s not a “port”. A neat corollary to this would be the adoption of wireless ports. Wi-Fi arrived in July 1999; Bluetooth, in 2003. Infrared came and went.

Also: how great to have a piece of simple, informative journalism that answers a question you didn’t realise you wanted answered until you saw it.
link to this extract

 


Hillary Clinton’s initiative on technology and innovation • HillaryClinton.com

The would-be president who doesn’t say outrageous things (and thus gets no coverage outside the US) has a detailed set of tech proposals, which has lots of “would be nice” ideas but also this:

»Copyrights encourage creativity and incentivize innovators to invest knowledge, time, and money into the generation of myriad forms of content. However, the copyright system has languished for many decades, and is in need of administrative reform to maximize its benefits in the digital age. Hillary believes the federal government should modernize the copyright system by unlocking — and facilitating access to — orphan works that languished unutilized, benefiting neither their creators nor the public.

She will also promote open-licensing arrangements for copyrighted material and data supported by federal grant funding, including in education, science, and other fields. She will seek to develop technological infrastructure to support digitization, search, and repositories of such content, to facilitate its discoverability and use.

And she will encourage stakeholders to work together on creative solutions that remove barriers to the seamless and efficient licensing of content in the U.S. and abroad.

«

There’s also privacy, smart government, more broadband, and plenty more.
link to this extract

 


Android fragmentation may not be as pronounced as Google’s distribution numbers would have you believe, says Apteligent • Android Police

Rita El Khoury:

»as Apteligent’s monthly data report points out, Google doesn’t take into consideration two important factors: devices that don’t have the Play Store installed (ie Chinese handsets mostly) and device usage. A phone may access the Play Store, but it may not be actively used. Once that’s taken into account, the image shifts greatly and you can see that there are far less devices in active use that are still running older versions of Android.

As the table and graph aboe show, Android usage distribution puts Lollipop at around half of the devices (vs. ~35% in Google’s June numbers) and Marshmallow at almost double what Google says (19.4% vs. 10.1%). Apteligent’s usage distribution drops KitKat from around 31% in Google’s stats to roughly 25%, Jelly Bean from ~19% to 6.8%, and shows that everything prior (ICS, Honeycomb, Gingerbread, and Froyo) is practically irrelevant.

Now sure, these are numbers taken from Apteligent’s report, which is based on devices that have apps with the Apteligent SDK installed, but they do show a new picture of Android’s version distributions.

«

Sure, they do; but still suggest that just under half of all devices with appreciable use are running a version of Android released between October 2013 and November 2014. Worth looking at the full PDF, which has lots more details of other devices and crashes too.
link to this extract

 


iPhone 7 again rumoured to have flush, touch-sensitive home button • Mac Rumors

Juli Clover:

»Apple may be planning to introduce a Force Touch home button on the iPhone 7, according to analysts at Cowen and Company (via Business Insider). Citing supply chain “field checks,” Cowen and Company predicts the iPhone 7 will do away with a physical home button, instead adopting a home button that sits flush with the phone.

Apple’s Force Touch technology will reportedly be built into the home button to provide haptic feedback when pressed, much like the Force Touch trackpad on Apple’s most recent MacBooks. With haptic feedback, iPhone users would still feel the sensation of pressing on the home button even without a button to actually depress.

Cowen and Company has a mixed track record, but it’s worth noting that we’ve heard two other rumors about a redesigned home button on the iPhone 7. In April, DigiTimes said Apple was testing a touch-sensitive home button that fits flush with the phone, and a highly sketchy image of what was said to be an iPhone 7 with a touch-sensitive home button surfaced in mid-June.

Given the unreliability of each of the home button rumors, the information should be viewed with some skepticism until confirmed by a more reliable source, but when viewed alongside rumors of improved waterproofing and the removal of the headphone jack, a flush home button is not a rumor that seems entirely out of the question.

«

In September 2015, I wrote that Force/3D Touch was clearly part of a path to replace the physical iPhone (and iPad) home button:

»I bet that mechanical failure of Home buttons is one thing that keeps showing up in Apple’s fault reports. Broken screens are easily replaced (and people can get by with broken screens for a looong time), but broken home buttons not so. Grit can get in. Water can get in. Constant movement isn’t ideal in electronics. You might say that it’s just tough if peoples’ Home buttons break, but compared to Android phones which don’t have them, it’s an obvious point of weakness – and customer dissatisfaction.

However, the Home button is needed as the place where your fingerprint is read. But that doesn’t need a moving home button; it just needs a circle of sapphire glass through which your print is read.

«

Feeling increasingly confident about that one.
link to this extract

 


Does Brexit herald a new era for big data-driven forecasting? • Forbes

Kalev Leetaru:

»Discussion does not imply support. In the Iowa caucuses, Sanders led Clinton in Facebook mentions by 73% to 25%, while actual voting had them nearly tied, while in 2012 Twitter showed Obama dominating the Southern states ultimately won by Romney. Most recently, Facebook showed Sanders beating Clinton by a landslide in Facebook discussion, though it did also show Trump leading on the Republican side. Of course, social media data is also becoming increasingly difficult to access as a data source.

Web searches are increasingly being used as a metric to understand society. Google Trends published a map looking at searches across the UK in the first week of June, showing that Leave dominated searches across the entire country outside of a handful of pockets. Even Scotland was overwhelmingly searching about Leave. In reality, the final voting results looked quite different. As with social media conversation, heavy search interest simply implies that people are intensely interested in the topic, not that they support or condemn it.

Interestingly, the timeline of search intensity for the two terms within the UK offers a slightly different picture. UK searchers were searching for Remain and Leave nearly neck and neck up until the morning the polls opened, at which point Remain climbed to 8% more than Leave. Yet, around 4:30PM local time, Leave suddenly surged to 15% greater and by 8:30PM local time Leave was 59% ahead and by 10:30 it was 79% ahead, before beginning to head back down.

«

Basically: this stuff doesn’t tell us anything, but in the absence of anything else we like to pretend it does, and anyway there’s no other useful data. (Scotland voted comprehensively to Remain.)
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In a Google future, drivers may exchange their data for infotainment • Car and Driver Blog

Pete Bigelow:

»In exchange for vehicle content, Google might want details that include data about the vehicle itself—mileage, condition of certain components like tires, details on serial numbers of vehicle systems, and the like. It may also demand information on the occupants, including the types of content they’ve stored in vehicle systems, preferred genres of music, video content,  and more.

With a company like Google, which has interests in the automotive realm that run from autonomous cars to its Android Auto phone-projection system, the consolidation of control worries John Simpson, director of the Privacy Project for Consumer Watchdog, a nonprofit organization that has tracked Google’s automotive efforts and frequently criticizes the company’s privacy practices.

“This is an egregious invasion of a motorist’s privacy, and I do fear that people who refuse to provide personal data will be unfairly locked out of infotainment systems,” he said. Going further down the line, Simpson said, “The privacy concerns are even greater with self-driving autonomous vehicles. Google could easily offer a self-driving car that would only operate if personal data were turned over to the company.”

«

Hmm. There are lots of insurance companies which already track your car (for younger drivers) to offer reductions in insurance costs. But seeking data about what you’re listening to? Perhaps it’s just covering all the bases.
link to this extract

 


Errata, corrigenda and ai no corrida: apologies for the late arrival of the blogpost and the email yesterday. The finger usually employed to press the “schedule” button has been reassigned to other duties.

Start up: Brexit fuels uncertainty, Google faces new antitrust case, AI for the blind, and more


Expect to see lots more of these. Photo by stratageme.com 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 13 links for you. None invokes Article 50. I’m charlesarthur on Twitter. Observations and links welcome.

Brexit: Uncertainty around funding and skills likely to affect UK tech startups • Computer Weekly

Lis Evenstad:

»

The tech startup industry as a whole was backing the remain campaign. However, the industry is now faced with a different and uncertain future that is likely to affect investment, funding and skills.

One of the main challenges the industry now faces is access to funding. Gartner predicts that as a result of the UK leaving the EU, IT spend will drop significantly not just at home, but in the rest of Europe.

John-David Lovelock, research vice-president at Gartner, said the current forecast growth for UK IT spending is 1.7%.

“The Brexit will drop this figure between 2% and 5%. In other words, UK IT spending growth will certainly be negative in 2016,” he said.

Frost & Sullivan’s research director for digital transformation Adrian Drodz and practice director EIA Ajay Sule added that access to funding and credit will be affected by Brexit.

“Although the Bank of England has been quick to state it has plans in place to support the UK economy and the financial services sector, concerns will be raised with regards to the ability to obtain credit and funding – especially among startups,” they said.

«

link to this extract


Anarchy in the UK: Britain is sailing into a storm with no one at the wheel • The Economist

“Bagehot”:

»

IT WAS a troubling exchange. On live television Faisal Islam, the political editor of SkyNews, was recounting a conversation with a pro-Brexit Conservative MP. “I said to him: ‘Where’s the plan? Can we see the Brexit plan now?’ [The MP replied:] ‘There is no plan. The Leave campaign don’t have a post-Brexit plan…Number 10 should have had a plan.’” The camera cut to Anna Botting, the anchor, horror chasing across her face. For a couple of seconds they were both silent, as the point sunk in. “Don’t know what to say to that, actually,” she replied, looking down at the desk. Then she cut to a commercial break.

Sixty hours have gone by since a puffy-eyed David Cameron appeared outside 10 Downing Street and announced his resignation. The pound has tumbled. Investment decisions have been suspended; already firms talk of moving operations overseas. Britain’s EU commissioner has resigned. Sensitive political acts—the Chilcot report’s publication, decisions on a new London airport runway and the renewal of Britain’s nuclear deterrent—are looming. European leaders are shuttling about the continent meeting and discussing what to do next. Those more sympathetic to Britain are looking for signs from London of how they can usefully influence discussions. At home mounting evidence suggests a spike in racist and xenophobic attacks on immigrants. Scotland is heading for another independence referendum. Northern Ireland’s peace settlement may hang by a thread.

But at the top of British politics, a vacuum yawns wide. The phones are ringing, but no one is picking up.

«

Still, mustn’t grumble, eh?
link to this extract


Rohan Silva has no idea what he’s talking about • FT Alphaville

Kadhim Shubber takes issue with former No. 10 tech policy adviser Silva, who suggests cutting corporation tax to 10% to (re?-) attract businesses:

»

He goes on to say that we should “transform the efficiency of our immigration system” by using “data analytics and machine learning”, which has become something of a verbal tic in the tech community.

This sort of thinking crops up whenever society faces complicated, difficult problems. If only taxes or regulation didn’t exist, neither would recessions or financial crises. It has the impression of being proactive — we don’t have time, just cut the red tape and save the economy already! — but is more likely to exacerbate the fractures in our society than heal them.

It will take months and years before we fully understand what happened in the UK last week, but it is highly plausible that this was the backlash of a class of people left behind by globalisation. They have much to be angry about: de-industrialisation; massive tax avoidance; the pain and misery caused by the financial crisis; the concentration of wealth in the hands of a small international elite. If we want to assuage this fury, we might start by better redistributing the fruits of globalisation.

In that context, turning the UK into a global tax haven would be akin to rubbing salt in the wound. Silva seems to imagine the economically disenfranchised people who just plunged the UK into crisis will be content to give him and other business owners more money. It’s not only a stupid idea, it’s a dangerous one that risks inflaming tensions.

«

link to this extract


Godless mobile malware can root 90% of Android devices

»

The mobile malware masquerades as harmless-looking mobile apps, including this Summer Flashlight app:

Several clean apps on Google Play also share the same developer certificate with malicious versions containing the Godless code. This means there is the potential for a user to be upgraded to a malicious version of an app without their knowledge.

If and when that infection occurs, Godless won’t lock their screen and demand hundreds of dollars in ransom. Neither will it place calls to mysterious Chinese phone numbers. Instead it will have the ability to download any app it chooses, including those that spam users with ads and/or install backdoors onto an infected device.

«

More details on the Trend Micro blog post. It starts installing when the screen switches off – sneaky.
link to this extract


Artificial intelligence is helping the blind to recognize objects • Co.Exist

Ben Schiller:

»

To train the iPad app, you place things in front of the device’s camera at several angles, telling it about the items. Then you repeat the process, taking the objects away, so the app recognizes the difference. On subsequent occasions, it will be able to distinguish, say, your set of keys from another set of keys. “It’s like a new born baby—it’s learning all the time as you show it objects,” Marczak says. Probably the training would be done by a family member or friend.

The second app, called Aipoly, does something similar. It’s sophisticated enough to recognize clothing and colors, even in abstract works of art.

Marczak says ID Labs is working with visually impaired support groups to improve the EyeSense app, which is free to download (versions for Android and other phones are due soon). It also works offline if necessary.

«

link to this extract


Google Maps gets a new, 700-trillion-pixel cloudless satellite map • The Atlantic

Robinson Meyer:

»

More than 1 billion people use Google Maps every month, making it possibly the most popular atlas ever created. On Monday, it gets a makeover, and its many users will see something different when they examine the planet’s forests, fields, seas, and cities.

Google has added 700 trillion pixels of new data to its service. The new map, which activates this week for all users of Google Maps and Google Earth, consists of orbital imagery that is newer, more detailed, and of higher contrast than the previous version.

Most importantly, this new map contains fewer clouds than before—only the second time Google has unveiled a “cloudless” map. Google had not updated its low- and medium-resolution satellite map in three years.

The improvements can be seen in the new map’s depiction of Christmas Island. Almost a thousand miles from Australia, the island was largely untouched by human settlement until the past two centuries. Its remoteness gives it a unique ecology, but—given its location in the middle of the tropical Indian Ocean—it is frequently obscured by clouds. The new map clears these away.

«

link to this extract


Xbox Fitness sunset announcement • Microsoft Studios

»

Since November 2013, Xbox Fitness has allowed you to experience the world’s best workouts with famous trainers, right in the comfort of your own home. As a service, Xbox Fitness has continually evolved since it launched on Xbox One, with new content and ongoing updates. Given the service relies on providing you with new and exciting content regularly, Microsoft has given much consideration to the reality updating the service regularly in order to sustain it. Therefore, the decision has been made to scale back our support for Xbox Fitness over the next year, and we want to provide our users with a timeline of the changes you will see.

«

What chances for the Microsoft Band’s future?
link to this extract


EU set to issue fresh formal antitrust charges against Google • WSJ

Natalia Drozdiak:

»

In an interview with The Wall Street Journal shortly before the Android announcement, Ms. Vestager said the agency was “advancing” its investigations into whether Google is abusing its dominance with its advertising service, an area of concern first outlined under her predecessor, Joaquín Almunia.

The investigation in advertising hits at a lucrative area of business for Google, which accounted for 90% of the tech firm’s $75 billion in revenue last year.

At issue is whether the company prevents or obstructs website operators from placing ads on their websites that compete with Google’s advertising business.

The EU is also looking into whether Google restricts advertisers that use Google’s auction-based advertising service, where they bid for the placement of ads on search result pages, from moving to other search advertising platforms.

«

In Europe it doesn’t rain, but it pours for Google. The UK is still part of the EU, so any decision would still be implemented over the next two years at least.
link to this extract


Google’s cars need a clear road map to revenue • The Information

Amir Efrati considers partnership (vehicle makers won’t do it), licensing (vehicle makers won’t do it), and suggests what’s left:

»

One natural path for Google is to reach consumers directly with an internet-based service. That’s its DNA. We know that Google’s car designers have thought long and hard about operating a “robo taxi” service to allow people to order cars on demand. It’s likely to go down that kind of path; its leaders have talked up the benefits of reducing car ownership so that one car could be used by many people throughout the day and night. Perhaps there will be subscription-type offerings that guarantee customers a pickup within a certain period of time, rather than the Uber-type system in which pickup times and prices can vary based on customer demand or driver availability.

By not needing to pay drivers, which represent the single biggest expense in ride-hailing, Google could price such a service below those run by Uber and other firms and build up its own customer base. But first, Google would need to produce these cars and get them deployed. Making thousands of new cars per year, particularly advanced models that have never been mass-produced before, would be a tough and expensive undertaking. Just ask Tesla how hard it is to make thousands of cutting-edge electric vehicles in a year.

«

“Go-to-market” is the big important step between “have a great idea” and “make pots of money from great idea”.
link to this extract


Secretive Alphabet division aims to fix public transit in US by shifting control to Google • The Guardian

Mark Harris:

»

Sidewalk Labs, a secretive subsidiary of Alphabet, wants to radically overhaul public parking and transportation in American cities, emails and documents obtained by the Guardian reveal.

Its high-tech services, which it calls “new superpowers to extend access and mobility”, could make it easier to drive and park in cities and create hybrid public/private transit options that rely heavily on ride-share services such as Uber. But they might also gut traditional bus services and require cities to invest heavily in Google’s own technologies, experts fear.

Sidewalk is initially offering its cloud software, called Flow, to Columbus, Ohio, the winner of a recent $50m Smart City Challenge organized by the US Department of Transportation.

Using public records laws, the Guardian obtained dozens of emails and documents submitted to Challenge cities by Sidewalk Labs, detailing many technologies and proposals that have not previously been made public.

«

Harris is one of the best journalists out there; he keeps finding out stuff in these areas long before anyone else.
link to this extract


We don’t know jack about the next iPhone • iMore

Michael Gartenberg:

»

Since I worked at Apple, I’m often asked what employees think behind closed doors when they see these rumors and read the debates. The answer is, not much. Maybe a smile, maybe a sigh if the conversations are particularly off base, or if they miss the point entirely about what might finally be announced.

I have no doubt there are all sorts of prototype iPhones floating around the labs, some with headphone jacks and some without. Some with LCD displays and some with AMOLED. Some with… well, I could go on and on.

And that’s the real point. We could go around and around on any rumor, but for now, all of them, and all the debate around them, are like that tale told by that idiot:

Full of sound and fury, but signifying nothing.

«

link to this extract


Microsoft still believes hand tracking is the future of PC input • The Verge

Tom Warren:

»

Microsoft wants to move beyond the keyboard and mouse to power the interfaces of the future. While the software maker has been investing in voice recognition and augmented reality scenarios, Microsoft’s research division has made some significant progress with hand tracking. Researchers are working on software that will allow virtual environments to track and recognize detailed hand motion. The breakthroughs could apply to virtual reality headsets, or just the ability to more accurately control virtual objects on a screen.

Microsoft is presenting some of it work at two academic research conferences this summer, offering a closer look at what might be our virtual future. Microsoft is focused on improving the accuracy of hand tracking, while reducing the amount of power required to process complex movements. “We’re getting to the point that the accuracy is such that the user can start to feel like the avatar hand is their real hand,” says Jamie Shotton, a principal researcher in computer vision at Microsoft’s UK research lab. “This has been a research topic for many, many years, but I think now is the time where we’re going to see real, usable, deployable solutions for this,” Shotton said.

«

Unconvinced. How does it determine the difference between an intentional gesture and an unintentional one?
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Amazon to add dozens of brands to Dash buttons, but do shoppers want them? • WSJ

Sharon Terlep and Greg Bensinger:

»

Several consumer-product executives said they have signed up for the gadget largely to ensure their brands maintain close ties to Amazon. The venture is more vital as a marketing tool than a product-delivery system, they said.

“It may not be the most intuitive feature,” said Ken McFarland, director of e-commerce for Seventh Generation Inc., which has Dash buttons for its cleaning products and diapers. “But Amazon is trying so many things and you don’t want to miss out on the ones that work. You want to be out there if it does happen to be a hit.”

Companies pay Amazon $15 for each button sold and 15% of each Dash product sale, atop the normal commission, which typically ranges from 8% to 15%, the people familiar with the matter said.

For their part, consumers pay $5 per button, though Amazon sweetens the deal by offering a $5 rebate for every button. The rebate is good toward the first purchase using that button. Only members of Amazon’s $99-per-year Prime membership are eligible to use the Dash buttons.

Helping expand Dash’s ranks: Amazon dropped a hefty buy-in fee of around $200,000 required of the first companies that signed up, according to people familiar with the terms.

«

This resembles supermarkets charging companies to get their goods visible on shelves shoppers frequent – except here, the shelves are inside the shopper’s home. “Fewer than half” who have one have used it, according to Slice Intelligence, at a rate of about once every two months. The other bugbear? You don’t know what the price of what you’re summoning with a push is.
link to this extract


Errata, corrigenda and ai no corrida: none notified.

It’s dark out there: the Q1 2016 smartphone scorecard


It’s all a bit murky in the smartphone market right now. Photo by Moyan_Brenn on Flickr.

The arrival of 2016, and the dramatic slowdown in the smartphone market in the US and China, is putting brand new pressures on the bigger players, though more noticeably on the smaller ones.

Inasmuch as nobody who isn’t Samsung, Apple or (I think) Huawei is making money at scale from smartphones. All of the “small big” players such as LG, Sony, Lenovo/Motorola, HTC, and – I’m fairly certain – Xiaomi are losing money. Of the first four named above, their collective loss on smartphones in Q1 2016 was $850m (all prices are given in US$ throughout); and for Xiaomi, which sold fewer than in the same period in 2015, at an ASP (average selling price) below everyone else including Lenovo/Motorola, it’s hard to see that it could have scraped a profit.

Not only that, but Apple finally came under pressure: both its smartphone shipments fell (despite a fair bit of inventory stuffing) and so did its ASP, from over $690 in the fourth quarter to just over $640 in this one, the lowest value since it introduced the larger-screened 6 series phones in September 2014.

Samsung meanwhile sailed along, pushing almost as many phones out of the door and seeing only mild erosion year-on-year of ASPs. Notably, Samsung’s profits were their highest since the second quarter of 2014 – helped, surely, by the decision to push the Galaxy S6 flagship out before the quarter ended.

So first the numbers.

Q1 2016: the smartphone scorecard

* denotes estimate: explanations below

Company Handsets
(million)
Revenues Handset
ASP
Operating
profit
Per-handset
profit
Samsung 81.9 $24.25bn $242.48* $3.5bn $42.75*
Apple 51.2 $32.86bn $641.83 $9.17bn* $179.06*
Huawei 27.5 $5.72bn $208 positive? positive?
LG 13.5 $2.67bn $197.57 –$224.64m –$16.64
Lenovo/Motorola 11 $1.74bn $159.36 –$105m –$9.55
Sony 3.4 $3.64bn $473.32 –$372.2m –$109.47
HTC 2.5* $0.46bn $182.80* –$148m –$59.20*
Microsoft
Mobile
2.3 $0.50bn* $217.20* –$154m* –$67*

Assumptions:
Samsung: featurephones (estimated 18.1m of them) sold for $15, made a profit of $0 each. If their ASP is higher, the ASP of the smartphones is lower; if their profit is higher, the per-handset profit for smartphones is lower. For tablets, the assumption is the 6m shipped had an ASP of $200, and show zero profit. If they sell for a higher price, phone ASPs are lower; if they make a profit, per-handset profit is lower.

Apple: profit margin per handset of 28%. This is a longstanding historical figure worked by analysts better at this stuff than me. It will actually vary by quarter, depending on phone mix, how new the phones are, and storage (more storage = better profit margin). But this is a usable rule of thumb.

LG: sells no appreciable number of tablets, and doesn’t make a profit or loss on them. (In Q1 2015 it shipped 1.4m tablets, which didn’t have an appreciable effect on anything.)

HTC: shipments had to be estimated based on its (woeful) revenues. I’ve said previously that I don’t think HTC will ever make a profit again in smartphones, and nothing I’m seeing makes me feel I was wrong.

Microsoft Mobile: featurephones (15.7m of them) had an ASP of $15, and made zero profit. Lower featurephone ASP would mean higher smartphone ASP. Any profit would mean more losses for smartphone handsets. Lots has to be assumed about Microsoft’s handset business, including gross margin (I assumed $50m on its $500m smartphone sales – possibly generous), and R+D costs and sales/general/administrative costs (assumed $50m and $75m respectively). The numbers still don’t work in its favour, even though a year ago those figures were over $500m together.

There’s one other notable Microsoft comment in its 10-Q: “Patent licensing revenue decreased 26%, due to a decline in licensed units and license revenue per unit.” That would be Android handsets paying a licence. Whether that’s due to Huawei rising and not having a patent deal isn’t clear. But it’s one to watch.

Discussion: gravitational pull

The takeaways from this only become clear once you look at the longer-term trends. Android OEMs losing money isn’t new, though Lenovo’s continuing inability to turn Motorola into a money-making (or “not money-losing”) proposition suggests that some things are eternal.

To do that, we have to graph what has happened since 4Q 2015 (the first quarter for which I began collecting this data.)

First though, the handset landscape – as in, how many handsets do these people shift? Best seen in graphical form, so you can get an idea of who’s rising, or falling, or what-the-helling.

Screenshot 2016 06 24 14 56 28

For phone ASPs, I’ll introduce a new measure – the “blended Android ASP”, which is the weighted average ASP, found by taking the available revenues for Android OEMs, and dividing by the total number of handsets shipped by those OEMs. Samsung tends to weigh heavily on this. I’ve included Xiaomi by assuming its ASP was $160 during 2015, falling to $157 in Q1, based on information from analysts. For Huawei, there’s no data except for Q1, when its ASP was $208.

Phone ASPs:

Screenshot 2016 06 24 14 31 15

This can be a little difficult to read, but you can see clear trends: Sony is the only company which is consistently raising its ASP. Even Apple is seeing a trend where it falls, while Microsoft in the past couple of quarters has done that. But for both, that has come at the cost of, well, profit.

Let’s see if when you compare the ASPs to the “blended” Android ASP, so you get an idea of how the prices change relative to the known ASPs. (This is not the ASP for all Android phones all over the world – for that you’d have to pay $$$$ for an analyst report from IDC or Gartner.)

Screenshot 2016 06 24 14 17 53

ASPs first: what’s pretty clear (and expected) is how far above the crowd Apple is; how Samsung’s figures tend to dominate the sector; how Sony’s are climbing; and how Xiaomi and Lenovo/Motorola are well below the crowd.

Sony has a strategy of raising ASPs in order to find profit somewhere, somehow, up there. Trouble is, it keeps not managing to. Microsoft ditto (perhaps). The problem they both have is that they’re selling fewer handsets over time, which makes profit harder to achieve because your fixed costs (overheads such as staff, administration, buildings etc) don’t shrink in the same way.

I’ve assumed that Xiaomi’s ASP was $160 throughout 2015; the figure for the first quarter of this year comes from IDC. That $160 figure makes sense: in June 2014, Bruce Einhorn at Bloomberg was comparing Huawei and Xiaomi (in a piece that seems prescient now) about Huawei’s insistence that it could be China’s top smartphone brand, and noted that

Huawei may not be able to compete with Xiaomi’s razzle-dazzle, but the Shenzhen-based Huawei has made big strides of its own in building its brand and making cool handsets. Last year it launched the Ascend PG, which Huawei said was the world’s slimmest smartphone, with a depth of just 0.24 inch (6.18 millimeters). In the first quarter of 2014, Huawei shipped 13.5 million smartphones, compared with Xiaomi’s 10 million, according to Bloomberg Industries. At $155.30, the average selling price for Huawei’s phones is slightly less than Xiaomi’s $159.60. And like Xiaomi, Huawei now sells most of its phones under its own brand. Three years ago, most of the handsets Huawei sold carried operators’ brands, with only 30% using Huawei’s own brand. Today, 95% of Huawei phones use the Huawei brand.

Note that Xiaomi’s ASP hasn’t shifted in those 18 months; by contrast, Huawei’s has rocketed, from that $155 to $208 now (according to IDC).

Profit: still mostly missing in action

For profit, the picture – unless you’re Apple or Samsung – remains unrelentingly grim. Although we don’t know how it looks for Huawei and Xiaomi.

For Huawei, its only known ASP (that I have; if anyone from IDC/Gartner wants to send more details, please do) is at a level where at best you’re breaking even. Given the colossal volume Huawei has managed in smartphones – it’s now the third biggest – it could have hit the economies of scale necessary to go past breakeven.

Xiaomi, meanwhile, is venture-funded, and selling at a very low ASP, and has seen sales go into reverse in the first quarter compared to the previous year. ASPs have followed. Even if you think that its model of selling online is clever, it’s hard to see that it would be making a profit. But we don’t know.

In the end: it looks dark

Looking at the handset shipment graphic, one would have to say that HTC, Sony and Microsoft are all heading towards the exit. They’re bigger than a lot of small players out there (OnePlus, Micromax, etc) but they’re trying to play on a global scale, and that’s very expensive. Even Lenovo, which is discarding Motorola parts as fast as it can, struggled in its home market of China and is now casting around for other places to sell.

LG seems to want to be in the game, but Xiaomi is challenging it, and Huawei has already overtaken it. All that is saving it is the fact that the smartphone business is part of a conglomerate that also makes air conditioners, washing machines, TVs and so on.

The really interesting one is Apple. Its ASP finally dropped – and by quite a bit. Its shipments fell – and again, by quite a bit (it only got where it is by stuffing the channel). Its per-handset profit dropped, in line with the ASP.

The question that keeps being asked is: how long can Apple stay above the fray? But the answer comes back, again and again: probably a lot longer than others can stay in the game.

Would you fund this?

If you were shown those graphics and asked who you’d like to be backing, it probably wouldn’t be Xiaomi; you’d want to be up there with Apple and Samsung, where the money is good and prices are high. But building a premium brand is the sort of thing that you wanted to start doing 30 years ago (at least).

I’ll admit I’m puzzled by the determination with which companies like Sony and LG and HTC stick to the smartphone business. If you’re losing money regularly, why do it? Perhaps it’s a fear of what comes afterwards – of the void beyond. Even BlackBerry is refusing to get out of the handset business, even though it barely generates gross margin on each handset (that is, hardly covers the costs of the actual device, never mind the sales/distribution/research process that gets it to someone).

Here in the UK we’re about to find out what #Brexit means; a leap into the void beyond. Maybe some smartphone makers are similarly worried about what happens if they stop making phones. Or it’s just too expensive to wind it all up, and safer to take small acceptable losses rather than big company-defining ones. (It’s the same approach that has seen once-big names in the PC business such as Toshiba simply rein in their distribution and manufacturing there.)

So maybe this is how the smartphone business ends for the companies which aren’t Apple and Samsung but which were early into the business: not with a bang, but a whimper.

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.
link to this extract

 


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.

«

link to this extract

 


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?
link to this extract

 


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.
link to this extract

 


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.
link to this extract

 


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.
link to this extract

 


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.
link to this extract

 


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?

«

link to this extract

 


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.
link to this extract

 


Errata, corrigenda and ai no corrida: none notified.