Start up: dual-app iPads?, Pebble’s cash call, improving S6 battery life, Chromebook sales and more

Posted on May 22, 2015 by charlesarthur

S6 discharging too fast? This might sort it. Photo by AndyArmstrong on Flickr.

A selection of 8 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Future of iPad: dual-app viewing mode, then J98/J99 ‘iPad Pros,’ multi-user support » 9to5Mac

Mark Gurman:

Facing slowing growth for the first time since the iPad’s 2010 debut, Apple is working on several significant software and hardware updates to reinvigorate the tablet over the next year. Apple is developing a dual-app viewing mode, 12-inch iPads codenamed “J98″ and “J99,” as well as support for multi-user logins, according to sources briefed on the plans. First planned for debut last year, the split-screen applications feature for the iPad could be introduced as soon as June at Apple’s annual Worldwide Developers Conference, while multi-user login support and the 12-inch iPads will apparently arrive later…

In Gurman we trust. He’s never told us they’re working on a TV. And these improvements would help the iPad in businesses, which is the next frontier for tablet penetration.

Adult dating site hack exposes millions of users » Channel 4 News

Geoff White:

Channel 4 News has been investigating the cyber underworld, discovering which websites have been hacked and exposing the trade in personal information of millions of people through so-called “dark web” sites.

The investigation led to a secretive forum in which a hacker nicknamed ROR[RG] posted the details of users of Adult FriendFinder. The site boasts 63 million users worldwide and claims more than 7 million British members. It bills itself as a “thriving sex community”, and as a result users often share sensitive sexual information when they sign up.

The information of 3.9m Adult FriendFinder members has been leaked, including those who told the site to delete their accounts…

…The front page of Adult FriendFinder, which is based in California, features photos of dozens of attractive young women. Yet the hacked data, contained in 15 spreadsheets, reveals how few females appear to use Adult FriendFinder.

Among the 26,939 users with a UK email address, for example, there are just 1,596 who identified as female: a ratio of one woman to every 16 men.

How.. unsurprising.

Rumor has it that Pebble is on the rocks even with $18m in the bank » TechCrunch

John Biggs:

Smartwatch maker Pebble seems to be in some trouble. According to sources close to the company, the company is having trouble maintaining its growth and has turned to a Silicon Valley bank for a $5 million loan and $5 million line of credit. Valley VCs have been turning down the company’s requests for new capital.

Pebble CEO Eric Migicovsky offered no comment.

Actually this feels like cashflow: it has to commit factory time to make those watches, and VC money isn’t what it needs; it needs a line of credit to pay for that. Whether it’s in trouble is a different question. I’d be surprised if it were.

Few business takers yet, but Chromebook sales grow to 7.3 million this year » ZDNet

Liam Tung:

The number of the low-cost Google-powered laptops sold this year is on track to grow 27m, up from 5.7m units in 2014 to 7.3m in 2015, research from analyst house Gartner shows.

The Chromebook’s growth contrasts markedly with the shrinking global PC market. However, sales of the devices remain heavily skewed towards the US and within that market, they’re largely used in schools, despite growing interest from consumers in the country.

In 2014, the US accounted for 84% of all Chromebooks sold, with 60% of sales coming from education, 39% from consumers, and 1% from business.

Last year, noting signs of growing interest among businesses for Chromebooks, Gartner forecast that by 2017 sales to the education sector could rise to over 6m units, driving total sales for the year to 14 million laptops sold.

Its outlook for the next two years is more conservative, with the analyst predicting shipments to rise to 7.9m by 2016, suggesting growth of under 10% for next year.

This in a market of about 300m PCs per year. Not the dramatic displacement that had been expected. Chromebooks began in 2009. Do they really offer too little utility, or are people too wedded to Windows even though cloud services would serve them fine?

Not so fast: connected cars could cause data traffic jams » Reuters

Eric Auchard:

Traffic jams in the future could cause potentially dangerous data snarl-ups as cars packed with entertainment, safety and navigation features vie for airwaves with smartphones, tablets and networked features in other vehicles, according to a study.

By 2024, mobile networks will see machine-to-machine (M2M) connections jump 10-fold to 2.3 billion from 250 million in 2014. Half these links will be automotive, said the study published on Thursday by Machina Research.

On the roads, about one in five vehicles worldwide will have some form of wireless network connection by 2020, or more than a quarter of a billion connected vehicles, according to a forecast from technology research firm Gartner.

This one tweak could boost battery life on your Galaxy S6 or S6 Edge » ZDNet

My ZDNet colleague, Matthew Miller, bought and then returned a Samsung Galaxy S6 Edge. He liked the phone, but in the end, the poor battery life he experienced was a deal-breaker.

That’s the same problem Business Insider’s Antonio Villas-Boas found after using a Galaxy S6, essentially the same handset but without the curved edge displays, for a month. Villas-Boas learned that one single setting solved his battery life issues, however.

“I switched off Google Now, Google’s digital assistant, and my battery life skyrocketed to last me about 36 hours on a single charge with relatively decent usage, including music streaming, but without using Bluetooth or GPS. I charge it every night, but I usually have just under 50% battery left before I go to bed.”

That’s interesting for a few reasons. First of all, if it addresses the short run-time on a single charge, the setting change provides a reasonable workaround for Galaxy S6 and S6 Edge owners.

Second, there’s something else going on with Google Now on these particular handsets: The always listening feature of Google Now stopped working on these two handsets for many people in the middle of April. Google is aware of the problem, publicly noting on April 23 that it is actively working on a solution.

Some suggestions that Google Now is optimised (somehow) for Qualcomm processors; the S6 and S6 Edge uses Samsung’s own Exynos. That’s a problem is Google Now is killing the battery, though.

The clock is ticking for Dropbox » Business Insider

Eugene Kim, with a good investigative piece:

After coming out of Y Combinator in 2007, Dropbox hit 100 million users by 2012, and 300 million by 2015. That rapid growth made some people feel like they’d already made it. “There wasn’t that sense of ‘We haven’t won yet,'” this former employee says.

This person also tells us that DfB growth was “not stellar” as of the middle of last year.

Another person who left Dropbox last year said that the company has become noticeably slower as it’s gotten larger. (Dropbox went from 500 to 1,200 employees in the past 12 months.)

For example, a simple team change request had to go through multiple HR managers, creating a culture of heavy “process” that many engineers dislike.

In fact, in one of the internal surveys that asked if the engineers felt they were empowered to perform at full potential, almost half of them said “No,” according to this person.

What’s Dropbox’s USP?

Myntra sales dip 10% in app-only mode, rivals Amazon, Snapdeal, eBay to play safe for now » The Economic Times

Varun Jain:

Myntra.com, India’s largest online fashion retailer, has seen a 10% drop in sales since it shut its website and turned a mobile app-only etailer last week. The company, owned by Flipkart, had factored in such a decline and hoped to return to the level of sales prior to the move in the coming weeks, according to a source. Its closest rivals, Snapdeal and Amazon, however, said they had no plans to wind up their websites and focus only on mobile phone users.

“Our data shows that there are still many customers who use PCs to shop online. We do not want to force our customers to use one specific medium to shop on Snapdeal,” a Snapdeal spokesperson said.

The app-only approach seems to follow this logic: if you’re dependent on web visits for traffic and hence revenue, you’re vulnerable to someone who has better SEO or the vicissitudes of the dominant search engine. Better therefore to build up a loyal audience on the app, and drive people there through advertising.

Start up: death to calendars!, S6 hits 10m (is that fast?), why Apple ditched the TV, and more

Posted on May 20, 2015 by charlesarthur

Yeah, you know it’s not really necessary. Photo by clagnut on Flickr.

A selection of 12 links for you. Don’t have a meeting about it. I’m charlesarthur on Twitter. Observations and links welcome.

The chokehold of calendars » Medium

Mike Monteiro:

The problem with calendars is that they are additive rather than subtractive. They approach your time as something to add to rather than subtract from. Adding a meeting is innocuous. You’re acting on a calendar. A calendar isn’t a person. It isn’t even a thing. It’s an abstraction. But subtracting an hour from the life of another human being isn’t to be taken lightly. It’s almost violent. It’s certainly invasive. Shared calendars are vessels you fill by taking things away from other people.

“I’m adding a meeting” should really be “I’m subtracting an hour from your life.”

We need a goal-oriented calendar, but first we need to understand why a goal-oriented calendar is necessary.

Here’s the problem with using YouTube as a babysitter for your kids » Huffington Post

Alexander Howard:

Six weeks after a coalition of consumer advocates accused Google of using ‘deceptive and unfair’ ads in its YouTube Kids app, the same group is raising new concerns about access to videos that are inappropriate for children.

“Our new claims are really about deceptive practices,” said Aaron Mackey, a graduate fellow at Georgetown University Law Center’s Institute for Public Representation, citing Section 5 of the Federal Trade Commission Act.

The coalition, which sent a letter to the Federal Trade Commission on Tuesday as a supplement to the previous complaint, includes the Campaign for a Commercial-Free Childhood and the Center for Digital Democracy.

The groups allege that the app, which is marketing to children ages 5 and under, allows kids to access inappropriate videos — including some that have nothing to do with children at all. Some of the unrelated videos are unremarkable, like videos of corporate filings. Others, though, will raise eyebrows with explicit language, jokes about drug use and pedophilia, and frank discussions of pornography, violence and suicide.

Wonder if the FTC will act on this.

LG unveils wallpaper OLED panel » The Korea Times

The 55-inch wallpaper OLED panel, presented as one of the company’s future displays at a media event, is only 0.97 mm thick, weighs 1.9 kg and can easily be stuck to a wall with a magnetic mat, or removed from it.

The new product is far slimmer compared with LG Display’s existing flagship 55-inch OLED panel that is 4.3 mm thick.

Come on, that is impressive. Imagine how you’d use that at home.

One big reason Jawbone took debt » Fortune

In fact, $300m of debt, rather than venture capital, as Bloomberg discovered. Dan Primack explains:

For BlackRock, this is obviously an effort at risk mitigation. For Jawbone and its existing shareholders, it’s a bit more complicated.

Yes, Jawbone clearly needs BlackRock’s money. But structuring this deal as debt instead of as equity also allows the San Francisco-based company to maintain a $3bn valuation it reportedly received last fall. That means it needn’t reprice existing employee stock options, and gives it upside flexibility when recruiting new employees. Plus, Jawbone doesn’t take the kind of ‘falling unicorn’ PR hit that could cause potential customers to purchase from more stable vendors.

My spidey sense feels that Jawbone is stuffed, though – especially when you compare it to the hugely profitable Fitbit.

Behind Apple’s move to shelve TV plans » WSJ

Daisuke Wakabayashi:

In an effort to distinguish itself, Apple investigated various display technologies.

In the mid-2000s, it created a prototype display that was transparent, like a pane of glass, when turned off but used lasers to display an image when turned on, according to a person familiar with the matter. That technology never made it past the research phase because it used an enormous amount of power and the image quality was poor. Apple patented the technology in 2010.

Apple had a small team working on the TV set in the years before it put the project on ice, said people familiar with the matter. It considered building TVs with screens offering four times the resolution of high-definition displays.

The price of such 4K displays—named because they have about 4,000 horizontal pixels in an image—have come down in the past few years, but those screens were still prohibitively expensive at the time.

Apple also looked at features that could expand the television’s function in the living room. Using cameras above the screen, Apple experimented with a video-calling feature—described as FaceTime for the television—that sensed who was talking and directed the camera to the speaker. In the end, the people familiar with the matter said the feature didn’t seem compelling enough to drive an entry into a new product area.

Truly sounds like a dud, to be honest, but you can imagine some companies putting it out because WE ALREADY SPENT A TON ON R+D HERE DAMMIT. (A great scoop by Wakabayashi, too.)

The Google-Twitter deal goes live, giving tweets prominent placement in Google’s results » Search Engine Land

Danny Sullivan:

Sometimes, tweets might not appear at all. We asked Google about why tweets might show, what controls exactly where they show, if they’re showing all tweets for a query in chronological order or filtering in some way such as to block obscenity or to surface more popular tweets. The company wouldn’t answer any of those questions.

Google’s blog post on the deal does say:

It’s a great way to get real-time info when something is happening. And it’s another way for organizations and people on Twitter to reach a global audience at the most relevant moments.

So presumably, you’re more likely to see tweets in Google when a hashtag, topic, person or organization appears to be trending or is newsworthy.

Twitter also says there’s no “direct” monetisation. (But of course it gets traffic.) Useful deal for both companies. I can only see them getting closer; their interests are aligning more and more.

Liveblog: What would you do if you woke up one morning and there was no Internet? » Liveblog

Dave Winer:

A question that reveals the problem is to wonder what would happen if you woke up one morning and found there was no electricity. Not much would happen in the world as it’s currently configured without electricity, even though there was a time when it worked fine without it.
I think the Internet is sufficiently integrated into our civilization at this point that if it were to be removed, it would be such an enormous shock to our economy that.. well, that’s why #2 [“Cry”] is also a correct answer. 😉

When you reflect on it, this is a great question to pose.

STRML: Projects and Work

Samuel Reed’s site needs to be visited. It builds itself while you watch. (Don’t worry, it’s HTML5.)

Global shipments of Galaxy S6 series top 10 million » Yonhap News

South Korea’s top tech giant Samsung Electronics Co. said Tuesday its global shipments of the latest flagship Galaxy S6 models surpassed 10m units in about one month after their release.

“The sales of the Galaxy S6 series have already surpassed 10 million,” a high-ranking Samsung official said. It marked the first time for the company to confirm the sales figure of the latest flagship.

The Galaxy S6 boasts Samsung’s first built-in wireless-charging batteries. The offbeat Galaxy S6 Edge also has been grabbing the market’s attention with the industry’s first screen that is curved at both the left and right edges. They started official sales on April 10.

The new models’ predecessors, the Galaxy S5 and the Galaxy S4, meanwhile, sold more than 10m units in less than a month. Samsung did not clarify when the 10m sales mark was reached for the Galaxy S6.

To be clear, the timings from “on sale” to 10m were:
S2: five months
S3: 42 days
S4: 27 days
S5: 25 days
The S6 doesn’t seem to have moved faster. But these are all sales to carriers (who may be feeling reluctant to take on stock) rather than sell-through. This story has barely begun.

Here’s how they built the beastly machines for Mad Max: Fury Road » The Credits

Bryan Abrams interviews Jacinta Leong, the art director for the film:

A specific challenge designing the vehicles was achieving aesthetic qualities as well as functionality. Our vehicles had to look amazing, but beyond that, they also had to drive safely at speed!

I’ll use a the GigaHorse for example. The Gigahorse was a stacked pair of Cadillac bodies, powered by a pair of Chevy 502 engines. So it obviously looked intimidating, but how did it actually drive? Engineer Antony Natoli and mechanic Mark McKinley designed a system so the two engines sat in a side by side arrangement and were connected to the transmission. I modelled the system in AutoCAD, and from this file, the plates and components were waterjet cut.

Like this:

Easy to forget how much work goes into films like this – which is part of why I find bittorrenting of films like this unbearably arrogant.

The three problems with Android Wear » Beyond Devices

Compare and contrast Jan Dawson’s view (from July 2014, pre-Apple Watch unveiling):

One of the selling points of Android Wear is its tight integration with Google Now, which has been available for quite some time on smartphones but is only now becoming available on smartwatches. The theory here is good: Google Now is supposed to surface information just when it’s likely to be useful to the user, but the watch allows it to be presented in a much more immediate way than were the user to have to dig through their phone to find it. But the problem is that Google Now, in my experience, still presents information much more on a “just in case” basis than a “just in time” basis, and the stuff that’s “just in time” is often not all that useful.

Bright Young Flacks: “Cameron’s cronies” now drive Silicon Valley’s most sinister propaganda machine » PandoDaily

Paul Carr in a lengthy dig into Rachel Whetstone’s move from Google to Uber:

Everyone in UK politics who I asked about Whetstone was agreed on one thing: She’s the person you bring in if you need to convince everyone that your company isn’t quite as nasty as it appears, and if your current spin doctors aren’t delivering the results you want. First that was Google, and now comes the biggest challenge of her career: Uber.

I have low hopes when it comes to the American business press covering Uber, but even I was surprised at how few journalists bothered to share even the most basic details of Whetstone’s background with their readers. That stuff sits barely below the surface and speaks volumes about the famously ultra-libertarian Travis Kalanick’s decision to replace Plouffe with her at Uber: an Obama liberal booted upstairs to make way for a multi-generation Cameron conservative/libertarian.

There’s more – much, much more.

Start up: Apple v Samsung redux, cornering the DRAM market, what millennials will do to tech

Posted on May 19, 2015 by charlesarthur

Speed: Facebook’s got it. Photo by _hadock_ on Flickr.

A selection of 8 links for you. Like butterflies, only linkier. I’m charlesarthur on Twitter. Observations and links welcome.

Tools don’t solve the web’s problems, they ARE the problem » QuirksBlog

Peter-Paul Koch:

The web definitely has a speed problem due to over-design and the junkyard of tools people feel they have to include on every single web page. However, I don’t agree that the web has an inherent slowness. The articles for the new Facebook feature will be sent over exactly the same connection as web pages. However, the web versions of the articles have an extra layer of cruft attached to them, and that’s what makes the web slow to load. The speed problem is not inherent to the web; it’s a consequence of what passes for modern web development. Remove the cruft and we can compete again.

The question is, how is Facebook speeding it up, given that it’s going to be shifting the same content? Data compression?

How aging millennials will affect technology consumption » WSJ

Christopher Mims on how the post-1980 “millennials” are moving into a new stage in life:

Data from comScore suggest most switching between Android and iPhone is in favor of Apple, and iPhones have a significantly higher average selling price than Android. So we can assume that, all other things being equal, as millennials age and their earning power increases, their taste in consumer electronics will become more expensive.

This is good news for Apple—and others targeting the higher end of the product spectrum. It’s also fantastic news for pretty much the entire consumer-electronics industry and countless online retailers such as Amazon: A giant demographic bulge is about to enter 20 years of peak earning power. This is a generation that likes its on-demand services, which means the coming decades will almost certainly see more Uber rides and same-day deliveries than ever.

Ad-blocking? No, mobile operators won’t be blocking adverts & charging Google to restore them » Disruptive Wireless

Dean Bubley:

In a nutshell, some European telcos feel they can “get away with” harassing Google and to a lesser degree Apple and Facebook, and get air-cover from their national regulators and the European Commission. While the current trials might have the convenient excuse of “protecting users’ dataplans”, the reality is much more duplicitous – they are jealous that Google has out-innovated and out-maneouvred them, in a similar fashion to their rhetoric about “OTTs”, when they have been asleep at the communications wheel for 20 years…

…[Among advertisers’ countermeasures to such a move] Encryption of content is the most obvious. It is already widespread in mobile, and is growing fast – in some networks, more than 50% is encrypted. There are multiple styles, ranging from SSL built-in to HTTPS traffic, SRTP for WebRTC traffic, through to using compression and proxy servers. Some of these are still theoretically “blockable” based on IP address, but the risk of false positives increases hugely. The inclusion of Google’s SPDY technology into the HTTP2 standard has pretty much ensured this is a one-way ratchet for web traffic in future.

As Bubley also points out, tons of mobile connections are actually made over Wi-Fi. And these points are only the beginning.

Asian component makers take slice of Apple’s iPhone spoils » FT.com

Simon Mundy and Kana Inagaki:

As well as the US-based global market leader Qualcomm, MediaTek must contend with China’s Spreadtrum, a chip designer whose processors are gaining a growing share of the Chinese market. Meanwhile shares in Ningbo-based Sunny Optical, which supplies camera modules to the likes of Xiaomi and Lenovo, have doubled in the past year.

“It’s clear the Chinese brands prefer to have Chinese suppliers,” says Nicolas Baratte, head of technology research for CLSA. “There is a different type of understanding between Chinese companies. The Chinese supply chain is amazingly flexible in terms of tolerance for specification change and redesign, and flexible payment terms.”

Yet with the Chinese market slowing, he adds, some Chinese suppliers — notably phone assembly groups such as Wingtech and Longcheer — are increasingly pinning their expansion hopes on work for faster-growing brands from other countries, especially India.
A reliance on foreign customers has been thrust upon Japan’s handset component suppliers by that country’s dramatic decline in the mobile phone market — but they have responded strongly according to analysts who say Japanese groups account for a third of the parts found in the iPhone, while achieving strong sales of high-tech components to Chinese producers.

EZTV shuts down after hostile takeover » TorrentFreak

A “hostile takeover” by scammers, who got access to the domain details and changed it to their own:

Sladinki007 says that NovaKing must have been devastated by what happened. A life’s work was completely ruined in a few days and access to personal domain names was gone as well.

While EZTV could technically start over using a new name the group’s founder decided to throw in the towel. Too much had already been lost. The group had always been a “fun” non-profit project, and the recent troubles took the fun away.

The scammers, meanwhile, continue to operate both the .it and .ch domain names and are now distributing their own torrents (sourced elsewhere) with the hijacked EZTV brand. They pretend to be the real deal, sending out misleading and false status updates, but they’re not.

Having control over NovaKing’s email address the scammers even reached out to other torrent site operators, claiming that EZTV was back in business. However, most knew better not to fall for it and have retired official EZTV uploader accounts.

So someone who enabled widespread torrenting of TV content (which – astonishingly – doesn’t actually make itself for free) gets scammed and gives up? A “life’s work”? Strike up the world’s smallest violin.

Tipping point ahead: Samsung’s DRAM market share at 40% » BusinessKorea

Cho Jin-young:

Samsung Electronics is riding high with its share of the global DRAM market at 40%.

According to a report on performance in the first quarter of this year published by Samsung on May 17, the company accounted for 43.1% of the DRAM market in Q1 2015, up 2.2% from the number for the entire year of 2014. The figure in Q1 2015 is a nearly 6% increase from the total number for 2013. That data that was mentioned was compiled by market research firm IDC.

Based on market research firm DisplaySearch’s data, Samsung’s share of the global display panel market was 21.8% in Q1 2015, up about 1% from the previous year. The tech giant explained that it is responding to market demand with a full line-up, from ultra large premium displays to those for entry-level UHD and curved TVs.

It made a loss on the TVs, but grew its market share. Could it corner the whole DRAM market? Weird thought.

Apple readies first significant Apple Watch updates, ’TVKit’ SDK for Apple TV » 9to5Mac

Mark Gurman:

Currently in development, the features seek to enhance Apple Watch security, connectivity with other Apple devices, health and fitness features, Wi-Fi capabilities, and integration with third-party applications. Additionally, Apple is also priming major updates for the Apple TV in both the hardware and software departments, including Apple Watch integration. Below, we detail what users can expect from Apple Watches and Apple TVs in the future…

Includes a “Find My Watch” which sounds more like Bluetooth leashing – if the Watch gets some distance away from the phone. There are also promises about health, and others, though they’re also cautioned as “possibly some way off”.

Appeals court finds third trial necessary in first Apple-Samsung case: $380m in damages vacated » FOSS Patents

Florian Müller:

today’s appellate opinion reverses the trade dress-related part of the district court ruling and, on that basis, remands the case for a new trial. A new jury will have to determine damages for all products the first jury found to have infringed an Apple trade dress: the Fascinate, Galaxy S (i9000), Galaxy S 4G, Galaxy S II Showcase (i500), Mesmerize, and Vibrant phones. The total amount of damages (these were only at issue in the 2012 retrial, not the 2013) retrial was over $380m.

The original jury verdict only specified damages by product, but not by product and intellectual property right. That’s why the total damages amount for those products must be redetermined. There’s no way to simply subtract the part that related to design patents.

The Federal Circuit agreed with Samsung that it would have been entitled to judgment as a matter of law (JMOL) on the functionality of the trade dresses on which Apple prevailed. In all other regards, such as invalidity of design and software patents, the Federal Circuit sided with Apple.

Oh good grief. Another trial. Just the other day I was thinking of how Google’s hurried purchase of Motorola for the ludicrous garbillions of dollars belonged to a different age when people thought patents would make a difference in the smartphone struggle. This is nostalgia reflux.

Note though that the appeals court didn’t reverse the jury verdict – as some wilder misunderstanders of legal process had forecast. Judges don’t reverse juries in civil trials without exceptional cause.

Start up: Starbucks app hack, more image recognition, HomeKit on the way, drone questions and more

Posted on May 15, 2015 by charlesarthur

That’s another sort of third-party keyboard altogether. Photo by zen on Flickr.

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

EXCLUSIVE: Hackers target Starbucks mobile users, steal from linked credit cards without knowing account number » Bob Sullivan

Sullivan broke this story:

Because Starbucks isn’t answering specific questions about the fraud, I cannot confirm precisely how it works, but I have informed speculation, based on conversations with an anonymous source who is familiar with the crime. The source said Starbucks was known to be wrestling with the problem earlier this year. Essentially, any criminal who obtains username and password credentials to Starbucks.com can drain a consumer’s stored value, and attack their linked credit card.

Hackers often manage to steal hordes of username and password combinations, the way they steal databases of credit card account numbers. Because consumers often re-use credentials, hackers take them and “brute force” thousands of potential logins at the website. Because Starbucks’ mobile payment app is so popular, any large set of stolen credentials is bound to have at least a few combinations that unlock Starbucks accounts.

Perhaps you’re wondering: what’s the use of hacking the Starbucks app? Answer, as a wilier mind than mine pointed out: you can buy Starbucks gift cards at the counter with them. Then you sell them on eBay. (Though I can’t decide if this is pretty small-time crookedness or a huge line of business. Certainly going to be inflating Starbucks’s bottom line though.)

Wolfram Language Artificial Intelligence: the Image Identification project » Stephen Wolfram Blog

“What is this a picture of?” Humans can usually answer such questions instantly, but in the past it’s always seemed out of reach for computers to do this. For nearly 40 years I’ve been sure computers would eventually get there — but I’ve wondered when.
I’ve built systems that give computers all sorts of intelligence, much of it far beyond the human level. And for a long time we’ve been integrating all that intelligence into the Wolfram Language.
Now I’m excited to be able to say that we’ve reached a milestone: there’s finally a function called ImageIdentify built into the Wolfram Language that lets you ask, “What is this a picture of?”— and get an answer.

Apple says first HomeKit smart devices coming in June » WSJ Digits blog

Daisuke Wabayashi:

“HomeKit [hardware certification] has been available for just a few months and we already have dozens of partners who have committed to bringing HomeKit accessories to market and we’re looking forward to the first ones coming next month,” said Apple spokeswoman Trudy Muller.

Apple’s statement comes on the heels of a report in Fortune that said Apple’s software platform — which will allow the company’s devices to control connected home appliances — was experiencing problems and that the introduction of the first HomeKit devices were being delayed.

For its part, Apple has never said when HomeKit-compliant devices would start hitting the market, but one developer working with Apple on the platform had told Re/code earlier this year that new products would be ready in May or June.

Interesting: Apple moved quickly to respond to this – within hours – and chose the WSJ to say it.

Dirt cheap drones: Is Europe’s largest Kickstarter in over its head? » Ars Technica UK

Cyrus Farivar:

In January 2015, the Welsh drone startup concluded its Kickstarter campaign to fund production of the Zano. It raised over £2.3m ($3.4m) in under two months, becoming the most crowdfunded European project ever. This summer, Torquing [Group, which is making the device] says it will ship drones to the more than 12,000 people who backed the project.

There’s only one problem. Despite Zano’s release date being less than two months away, no one outside Torquing has actually flown the drone. And it’s questions about the project that are truly beginning to take off.

Ars visited Torquing last month for an exclusive tour of the company’s offices. After spending a couple of hours with the Zano team, we don’t have a good sense of how well the device actually flies. Although we heard more about its touted “swarm” feature, we didn’t see the drone working in a real-world situation; we were merely able to hold a Zano and verify its existence.

Reece Crowther, the company’s head of marketing, regretfully informed us that we turned up just before a shipment of 500 last-minute prototypes arrived. Torquing, therefore, said it was unable to let us fly one. At the time, Reedman noted that only 12 Zanos existed, and we saw what appeared to be only a few of them.

I’m one of the backers. Fingers crossed. I’d expect this to be late, at best.

Sunrise launches ‘Meet’, a custom keyboard to schedule meetings » MacStories

Federico Viticci:

When I first tried Meet, Sunrise’s latest addition to their popular calendar app, I didn’t think it made much sense as a custom keyboard. Now, a few months later, Meet has become my favorite way to check on my availability from any app and create one-to-one meetings. With Meet, the Sunrise team has created one of the most innovative mobile calendar features I’ve seen in years.

Sunrise, part of Microsoft since February, rarely shied away from subverting traditional calendar features found in most clients for smartphones and tablets. As I explored last year, Sunrise’s biggest strengths lie in excellent integration with web services, prolific use of icons to quickly discern events, weather support, external calendars, and the ability to show details for event participants. At its core, Sunrise aims to reimagine the calendar by expanding it beyond a list of days and events

Super-clever. Expect more lateral thinking on keyboards as a result. Available on iOS and Android. Oh, Windows Phone? Doesn’t allow third-party keyboards.

How smartphone startup Light plans to replace high-end cameras » Re/code

Ina Fried on a company that’s not exactly making a smartphone; it’s making the camera systems to go into them:

Put more simply, Light tries to emulate digitally what a big zoom lens does through expensive glass lenses. It aggregates the data from the different cameras to create both optical zoom and high-resolution images. Light has applied for a bunch of patents to cover aspects of its approach, including creating zoom using images from the multiple fixed-focal length lenses.

As a business, Light is banking on the fact that using smartphone cameras, even a bunch of them, is a far more economical way to achieve the kind of images that in the past have required expensive glass lenses.

The technology is ready, says Grannan, who previously ran start-up Vlingo and also worked at Sprint PCS. There is of course, added cost in putting a bunch of cameras and mirrors inside a cell phone, an addition of perhaps $60 to $80 in the final cost of a phone, Light estimates.

Seems high. Creating a big lens from smaller ones is a solved software problem: it’s how the Very Large Array works, for example. Wonder if this is really a defensible USP.

Why I’m breaking up with Google Chrome » The Next Web

Owen Williams, on a topic I previously linked to:

The Verge reported that using Chrome over Safari resulted in a three and a half hour shorter battery life on the latest MacBook.

I’ve always loved Chrome’s interface, its plethora of extensions, and how it integrates with services every day, but it’s time for something new. We can do better.

The problem is that the Web is now optimized for Chrome users and that means alternatives often provide a terrible experience.

Thanks in part to the browser’s massive market share, the best developer tools and Google’s aggressive adoption of the latest Web technologies, developers have gravitated toward Chrome’s rendering engine as the only one they support.

I’ve switched to Safari (on a Mac), and found that yes, processor use plummets and battery life extends dramatically. Nor is it noticeably slower (or faster).

But the important point here is in the third paragraph of this excerpt: that lots of sites are now using Chrome-specific tweaks, which means that they don’t work as well in other browsers, at least on the desktop.

This does pose a problem if it becomes dominant in mobile: Android isn’t going away, and Chrome is increasingly the default browser on mobile too.

Android (and Apple, and BlackBerry, and Microsoft Mobile) handset profitability – the Q1 scorecard (updated)

Posted on May 13, 2015 by charlesarthur

Quality. Profitable. Photo by Thomas Hawk on Flickr.

At the end of January, I drew together the figures from the fourth quarter of 2014 to look at how profitable making smartphones was for companies including Apple, Samsung, HTC, LG, and Sony. The approximate answer was: not very, unless you were Samsung or Apple.

Another quarter gone: time again to see if anyone is faring any better. As a bonus I’m also throwing in Microsoft Mobile and BlackBerry.

Proceed with caution

A few words first on procedure. I look at the companies’ financial statements and information about the smartphone shipments, revenues and operating margin of their handset divisions. In some cases they don’t give this explicitly, or they give some but not all of the numbers, which have to be estimated or wrangled by triangulating with analysts’ data. (I tend to use IDC and/or CounterPoint, who I’ve found to be reliable.)

Some people have wondered why I use operating margin rather than gross profit to calculate these numbers. There’s an important difference. “Gross profit” is what you have left over after subtracting the cost of the goods in the product, and the cost of making it, and the cost of getting it to the customer. It’s a number that flatters a business because it doesn’t take into account all the other costs involved in running that business – such as paying sales, general and administrative [SG&A] staff, marketing, R+D (which comes out of your current cash, and is an investment in the future of the business), and all the other things you think of as “keeping the lights on”. If selling your products doesn’t cover all those costs, then you don’t actually have a viable business.

The Motorola finesse

This was why it used to bug me when Motorola Mobility’s people would say that it “made money on each handset it sold” selling its low-priced devices while owned by Google. Sure – it made money on gross margin. It wasn’t a lie, but it was economical with the truth, a comment made perhaps in the knowledge that most journalists wouldn’t ask “you mean on gross margin or operating margin?”

Motorola Mobility was fabulously unprofitable; its losses, once you included SG&A and R&D, were dramatic. Between the second quarter of 2012 (when Google took it over) and the first quarter of 2014, Motorola’s total revenues were $10.98bn. Its losses, once you took account of those costs, were $1.9bn, or 17 cents for every dollar of sales. Motorola never had a profitable quarter while inside Google. In fact if you take its entire life after being spun off from the larger organisation at the start of 2010 to the start of 2014, over 17 quarters just two showed operating profit, totalling $160m. Total operating losses, including those profits: $2.47bn on revenues of $30.6bn. Now it has been swallowed by Lenovo, which promises to make it profitable. We’ll see.

So don’t let glib answers fool you. There are lots of way to talk about “profit”. Here’s mine. (“ASP” is average selling price, across the company’s whole portfolio of smartphones.)

So how was Q1 for you?

With the numbers now in from all the top-line handset makers (who you’d expect would be the profitable ones), here are the numbers. (An asterisk means the number isn’t absolute, and the reason for each is explained below the table.)

OEM	Handset revenue US$ (approx)	Operating profit US$m	Operating margin %	handsets shipped	Implied ASP per phone	Implied profit per phone
HTC	$1.35bn	$0.89m	0.06%	5.0m	$270	$0.18
Sony	$2.28bn	–$461m	-20.2%	7.9m	$288.70	–$58.40
LG	$3.25bn	$79.85m	2.46%	15.4m	$210.79	$5.18
Samsung	$22.53bn	$2.47bn*	10.96%	83.3m*	$250.88	$29.65
Total for top-end Android	$29.41bn	$2.09bn	7.1%	111.6m	$263.50	$18.73
Lenovo	$2.82bn*	-$218m	-7.7%	18.7m	$150.80*	-$10.28
Top-end Android inc Lenovo	$32.23bn	$1.87bn	5.80%	130.3m	$247.35	$14.35
Apple	$40.28bn	$11.27bn (at 28% margin)	28% (est)	61.17m	$658.53	$184.20
Microsoft Mobile	$1.03bn	–$369m	-35.8%	8.6m	$119.70	–$54.00
BlackBerry	$274m	–$156.88m	-57.2%	1.3m	$210.77	–$120.68

Assumptions
HTC: I’ve assumed that all the first-quarter revenue is for HTC phones – which isn’t true, given that it also now offers the HTC Re and made the Nexus 9 tablet sold by Google. (Sales were likely pretty small, since it didn’t show up in IDC’s tablets category where the smallest number was about 1m, and you’d expect that Amazon sold more. I understand Nexus 9 shipments in Q4 were just 70,000; the number would be substantially smaller in Q1.)
The 5m phones number comes from one of the big analysis companies that tracks smartphone shipments. (Not sure I have their permission to say who, but they’re very reliable.)
The operating margin isn’t a mistake – it really is $890,000 after conversion. HTC truly lives on the edge; and has been spending on R+D for its virtual reality headset. The phones are probably more profitable than this suggests; the Nexus 9 and Re probably aren’t, but it’s unlikely they contribute much to revenue.

Sony: Currency converted using the yen rate for the quarter cited in Sony’s results presentation. The huge operating loss is a puzzler: Sony’s explanation in its financials is that besides the dollar’s appreciation hitting costs, it was due to “the recording of intellectual property related reserves in the current quarter”. I don’t know what the IP-related issues are; is Sony gearing up for a court fight with someone? (Microsoft, over Android licensing?)

LG: Currency converted from Korean won using the same conversion rate as Samsung.

Samsung: the company doesn’t give exact figures for its smartphone shipments; it coyly said in its investor call it had shipped 99m mobile phones including featurephones and that smartphones were in the “mid-80s percent”. This is IDC’s number.
Its smartphone revenues calculated on the prevailing won-dollar exchange rate on 31 March, and the basis that those 15.7m featurephones had a shipping price of $15, and that the “about nine million” (quote from the earnings call) tablets had a shipping price of $175.
Samsung gives operating profit for its entire “IM” division, which includes its PC divison. I’m assuming these make zero profit, or not enough to perturb the figures. If any of its PCs, tablets or featurephones makes a profit, that reduces the per-handset smartphone profit.

Lenovo: now owns Motorola, which is dragging down its results, as it does everywhere. Assumptions: the 2.5m tablets it sold went for an ASP of $100 and made zero profit; a higher tablet ASP and profit means the smartphone business did worse. Another assumption: Moto360 smartwatch sales didn’t add materially to revenues, and didn’t lose money. (You can argue about this. It reduces the smartphone revenue, but boosts profitability if the Moto360 sold well at what was probably a loss or breakeven.)

Lenovo is odd in that its smartphone business is now partitioned into two – there’s the Lenovo brand, which sells almost entirely in China (and recently in India, a little), and the Motorola brand, which sells much more widely. The Lenovo brand phones have really low ASPs – historically, around the $100 mark. The Motorola ones have much higher ASPs – about $230 in the most recent quarter. None of it is profitable, though; even before Motorola the mobile business was losing money, and there are various unspecified writeoffs of unspecified amounts in the latest quarter that make the losses even worse. Lenovo says it’s aiming to get Motorola profitable within 4-6 quarters of acquisition. So that’s by the middle of 2016.

Trouble for Lenovo is that it hasn’t made a profit with low ASP phones, and it’s not making one with Motorola’s high ASP ones. Perhaps it hopes the profit will come with scale (or the departure of rivals?).

Top-end Android cumulatively: clearly, Samsung dominates: it has 30 times more profit than its nearest rival (LG) on about 5 times as many phones.

Apple: we have to assume Apple’s iPhone operating profit margin at 28%, because it doesn’t break out divisional profits; all costs are assigned across the company. (You could estimate it by taking iPhone revenues as a percentage of the total, and assigning that percentage of all other costs to it.)

Microsoft Mobile: I previously set out all the calculations used here (which exclude writedowns on intangibles). Specific assumptions: its featurephones have an ASP of $15 and make $5 profit per handset; sales and marketing was $300m per quarter. Mobile is a terrible business for Microsoft, but it has to stick with it.

BlackBerry: these are the figures for its quarter to the end of February. I looked at those in detail, and found that services and software have consistent gross profit margins of about 82%. Subtract that from the gross profit, and you get a total gross profit for handsets of $21.20m. Now we have to subtract operating expenses from that; assuming those are proportional to the revenues from each slice of its business (hardware, software, services) we take away 42%x $424m = $178.08m to get the operating profit for BB’s handsets. It’s negative.
Handsets are an even worse business for BlackBerry than for Microsoft – and BlackBerry can’t bear the losses like Microsoft can. Tick tock.

Questions you’re asking:

1) Where’s Lenovo (including Motorola)?
Hasn’t reported yet; calendar Q1 is the end of its financial year, and it takes an age putting together its results. Might have them some time in, who knows, June. (It seems to have shipped 18.8m phones in the quarter, down year-on-year from the 19.1m Lenovo and Motorola shipped when separate.)
There, it’s now included.

2) What about Xiaomi/Huawei?
Though they’re big players in shipments (15.3m and 17m respectively), Xiaomi doesn’t publish numbers anywhere I can find (pointers welcome), and Huawei doesn’t break out any detail from its mobile division – though a year ago it said it was operating just ahead of break-even.

Comparison

Sequential quarter comparisons are usually odious, especially if you look from the Christmas quarter to the new year one; shipments fall, revenues fall and stuff gets cheaper as companies try to shift unsold stock and get ready for New Things. Bearing that in mind, looking back at the Q4 figures, we find that:
• HTC’s margins worsened quite a lot; handset ASP stayed fairly steady.
• Sony’s ASP dropped a lot, from $305 to $288.70.
• LG actually improved its operating margin, kept revenues and shipments up, and saw only a slight dip in ASP
• Samsung kept revenues up while increasing shipments – hence a big drop in ASP, from $306 to $250.88 – and improved operating margins and profit
• Apple saw shipments fall (as expected), a slight fall in ASP but per-handset profit remained almost the same. And it’s still taking all the money.

Coming up…

In a followup post, I’ll look at ASP trends for these companies, and what they suggest about the challenges facing these companies – particularly Sony – and also the question of whether Samsung might withdraw from the PC business altogether. (It pulled out of Europe last year.) Stay tuned.

Start up: Apple Watch v Android Wear, the old smartphone buyers, Google halts Mapmaker (finally), and more

Posted on May 13, 2015 by charlesarthur

Seems to be free of intentional errors so far. Photo by scarlettfawth on Flickr.

A selection of 9 links for you. Slather them over your body like peppercorn sauce. I’m charlesarthur on Twitter. Observations and links welcome.

Philly.com got 555 comments on an article about changes to comments » Poynter

Kirsten Hare: You’re making an effort to keep comments in a time when many sites have scrapped them. Why is that?

Erica Palan: There are definitely folks in our newsrooms — and in the industry overall — who would be happy to see comments go away. But our digital leadership team is committing to keeping comments. Commenters are some of our most dedicated readers. They come back again and again to our stories. Also, the Internet is a big, chatty place. If we don’t give our readers the opportunity to talk about the news, they’ll go elsewhere.

KH: There were 545 comments with this piece! Is that normal?

EP: Ha, not at all! Some of our stories will generate a ton of comments, but 545 is a lot no matter what barometer we’re using. I was really nervous it’d be crickets for awhile, because it was a few hours before it took off! (How embarrassing to write an article about comments and then receive no comments?) To me, it showed that our commenters really do care about being a part of Philly.com.

KH: I noticed you moderated them. Any advice for other journalists or news outlets?

EP: At Philly.com we’ve been really inspired by the work being done by the Engaging News Project. They put out a study that showed that having writers moderate and comment on their own stories improved the tenor of comments overall. A handful of reporters for the Inquirer and Daily News have started to do this and anecdotally, we feel it’s been pretty successful.

I reckon different dynamics apply: that the people with the most useful insights reserve those for places where they’ll be most valuable, which isn’t necessarily comment sections. “Commenters are some of our most dedicated readers” is true, but that doesn’t necessarily mean they’re the ones who attract other readers. (Also, having writers moderate comments on their own stories probably isn’t smart – nor a great use of their time. I didn’t moderate comments at The Guardian; no writer did.)

US smartphone sales among consumers earning less than $30,000 grow more than 50% » NPD Group

As US mobile phones sales transition to predominately smartphones, buyers have become significantly older and less affluent. For the third consecutive three-month period ending February 2015, sales among consumers earning less than $30K per year grew by more than 50%. This demographic is now the largest segment of the smartphones market, accounting for 28% of all sales. In contrast, sales among consumers earning more than $100K a year increased by just 24%. For the three months ending February 2015, buyers aged 55+ also represented 28% of all sales, up 24% from a year ago, and were the fastest growing age segment of the population.

Over the three month period ending in February, overall sales of mobile phones rose 28% compared to last year, while smartphone sales increased 35%. During the same three-month period, the share of sales for non-smartphones declined to just 14%…

…Apple and Samsung accounted for two out of every three smartphones sold over the three month period, although Apple sales increased by 45% and Samsung’s just 10%.

And here’s a brand breakdown:

NPD seems to think it’s the oldies buying the new models. So, old geezers are going to rule the mobile biz?

What to Wear? » Rusty Rants

Russell Ivanovic, of Shifty Jelly, in a comparison that I’ve been wanting to read since the Apple Watch came out:

One of the benefits of being curious about technology and running a company where we get to buy it to test on, is that I get to play with a lot of cool gadgets. When it comes to watches alone I have the Apple Watch, LG G, LG Watch R, Moto 360, Samsung Galaxy Gear and the Sony Smartwatch 3. I thought it might be interesting to compare Android Wear and Apple Watch as they are today.

The must-read for today, if only to keep up with how the two platforms are evolving. I think he’s spot-on with each prediction, too.

Baidu leads in artificial intelligence benchmark » WSJ Digits blog

Robert McMillan:

The company’s Minwa supercomputer scanned ImageNet, a database of just over one million pictures, and taught itself how to sort them into a predefined set of roughly 1,000 different categories. This meant learning the difference between a French loaf and a meatloaf, but also trickier challenges such as distinguishing a Lakeland terrier from a wire-haired fox terrier.

Five years ago, the possibility that computers would surpass humans at this work appeared remote. But computers run by Microsoft, Google, and now Baidu have all done better than the best human results in the past few months.

With practice, humans correctly identify all but about 5% of the ImageNet photos. Microsoft’s software had a 4.94% error rate; Google achieved 4.8%. Baidu said that it had reduced the error rate further to 4.58%.

The so-called deep learning algorithms that Baidu and others are using to ace these tests have only recently made the leap from academia to Silicon Valley. But they’re starting to have an impact in daily life.

Unfortunately the broader “impact in daily life” isn’t specified. Google used it for voice recognition in Android, but that’s not quite “daily life”.

Also notable: Chinese companies starting to challenge western ones in this field.

After several public Google Maps hacks, Google forced to suspend Map Maker to prevent more fake edits » SearchEngineLand

Barry Schwartz:

Google has temporarily suspended Google Map Maker, a service to allow the community to make edits to Google Maps similar to how Wikipedia edits work. The reason the service was suspended was because of the recent public edits made to show how easy it is to make fraudulent edits to businesses.

We covered the loopholes that showed how Edward Snowden was at the White House and how Android relieved itself on Apple. But these hacks and fraudulent edits have been going on for a long long time.

Indeed – recall locksmiths and the US Secret Service and the restaurant a rival said was closed at weekends. The problem with the “peeing Android” edit was that it was multi-stage, by a “trusted” editor. This isn’t going to be solved easily.

High profile tech start-up Ninja Blocks goes bust » The Age

Rose Powell:

Ninja Blocks built and sold home automation systems that allowed users to control electrical devices through their smart phone. It managed both the software and also manufactured a range of sleek hardware products.

The company was launched three years ago and sustained its growth through sales and a series of successful crowdfunding campaigns: $103,000 in 2012 and $703,000 in 2013. Both brought in double or triple their original goal. It also raised $2.4m in three funding rounds, which included leading Australian tech investors Square Peg Capital, Blackbird Ventures, Atlassian founders Mike Cannon-Brookes and Scott Farquhar as well as Sing Tel’s Innov8.

Crowdfunding campaigns require significant, ongoing public communication. The company went quiet in April as their latest product, the Ninja Sphere, ran over time and over-budget.

In a blog post, the team wrote the fact it was receiving “far below what they would expect to get somewhere else” their burn rate could not be sustained.

Unclear if the dollar amounts are Australian or US, but shows that hardware remains a tough business in which to succeed. (Side note: Powell’s byline describes her as “journalist”. Helpful.)

Hard numbers for public posting activity on Google Plus » Stone Temple Consulting

Eric Enge dives very deep into numbers that many have tried to dive deep into many times before:

Our extrapolated total suggests that about 23.4 million people have put public posts on Google+ within a given 30 day period. There is a hyperactive group of 358K+ people who do 50 or more public posts per month. After adjustments, we see these two numbers drop to 16M and 106K respectively.

These numbers should give you a good sense of what’s really going on in the G+ stream at this point.

Note that we also found that a small percentage (0.16%) of the total profiles examined currently return 404 errors (which means that the page does not exist), suggesting that the accounts have been abandoned or shut down.

The invalid profiles may include profiles that were robotically created in attempts to artificially game Google+. Those of you who are active on G+ are familiar with your follower count dropping at those times when Google clears a bunch of these out.

Isn’t going away, though, for reasons Enge then goes on to explain.

Four reasons why the Apple Watch will be a success » GlobalWebIndex

Jason Mander:

while the smart(est) money will probably wait for v2 of the Apple Watch to become available – the one where all of the initial annoyances and shortcomings have been addressed – there can be no doubt that, Apple’s first foray into this sector will finally push it into the mainstream. Quite simply, it’s inevitable that this watch will be a success – and here are four reasons why.

GWI provides wide-scale demographic information about web users worldwide. Of particular interest: it finds that those who have already bought a wearable are the most interested in using an Apple device, as here:

(Makes a change from all the “why Apple’s Watch will flop” pieces, anyhow.)

Regulator probes pitfalls of ‘sharing economy’ » FT.com

Barney Jopson and Tim Bradshaw on the US FTC’s plan to look into a number of companies:

In the US, the past actions of the FTC — which enforces federal antitrust and consumer protection laws — indicate that it sees ride-hailing apps such as Uber, Lyft and Sidecar as a positive force for competition
It has written to state and city legislators urging them not to pass laws that would put them at a disadvantage to traditional taxis.
But the agency wants to probe two practices that are central to peer-to-peer platforms — the accumulation of personal data and the use of rating systems — as well as questions over legal liability for injuries.
“We want to see to what extent sharing economy platforms should be able to monitor participants by collecting, let’s say, location data,” said Ms Lao. “And if they do monitor, how can they do so while adequately protecting the privacy of the participants?”

Start up: the customer service conundrum, Consumer Reports on Apple Watch, Daimler gets self-driving, and more

Posted on May 7, 2015 by charlesarthur

Could I have that delivered by a hostage negotiator, please? Photo by The Eggplant on Flickr.

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

Relying on product reviews? Knowing how a company treats its customers is just as valuable » NYTimes.com

Brian Chen:

As it stands, there is no one-stop website to see reliable ratings for customer service. In part, that is probably because customer service can be such a challenge to measure, said Matthew Dixon, an executive at CEB, a business advisory firm. His studies found that when people have positive customer service experiences, they tend not to share them.

“But when they’ve been wronged, they literally will tell anybody who will listen,” Mr. Dixon said.

Mr. Dixon’s studies found that customers stayed loyal to brands that offered hassle-free service interactions. His studies also found that customers were four times as likely to become disloyal to a brand after any service interaction at all — because so many service centers drag out people’s issues.

It seems like a no-brainer that consumers stick with brands offering solid customer service. Apple, which has more than $190bn in cash, is well known for its Genius Bar, the service stations at Apple stores where customers can seek help directly from the company’s trained technicians. Amazon, the largest online shopping site in the United States, is celebrated for its customer service.

Wouldn’t it be great if we could reliably research more companies with quality service, beyond relying on word of mouth?

Sure, but Apple’s cash isn’t the cause of its customer service – it’s the result.

Switching to Project Fi? You’re hanging up on Google Voice » ZDNet

Kevin Tofel:

The first batch of invites to Google’s phone service, known as Project Fi, are on the way. That’s the good news. Make sure you read all of the details before you accept an invite though: The bad news is that you’ll give up a few great features from Google Voice if you switch to Project Fi.

A Reddit member shared images of the Project Fi signup process after receiving an invite and this picture in particular illustrates what Google Voice features go away when you choose Google’s new phone service:

It doesn’t appear through the signup process that there’s a way to switch back from Project Fi to Google Voice either, although Google could have a provision for that in the future. The company is clear, however, that if you don’t migrate your Google Voice number to its new service, that number will be released.

“Making and receiving calls using Google Talk” seems a lot to give up if you like it.

Apple Watch tops Consumer Reports’ smartwatch reviews » Consumer Reports

Among other tests…

We submerge the watches, then check them for proper functionality immediately upon removal from the chamber, then again 24 hours later. The stainless-steel Apple Watch passed the test on the first try. The first aluminum Apple Watch Sport we put through our immersion test seemed fine when we took it out of the tank, but we experienced problems with it 24 hours later. We then tried two more samples, which showed no problems, so the Apple Watch Sport passed our water-resistance test.

The Sony SmartWatch 3 was the only watch that did not pass our water-resistance test. Two consecutive samples did not function properly after being submerged for 30 minutes at 3.3 feet. Because of its poor performance in this test, the Sony fell to the bottom of our rankings.

In the end, our top-rated smartwatch is the stainless-steel Apple Watch. Its performance on the scratch-resistance test and excellent scores for ease of pairing and ease of interaction make it our top choice. Not an iPhone user? Not to worry, several Android-compatible models and one multi-OS-compatible smartwatch got very good overall scores as well.

You have to be a subscriber to read it all, though.

Home Depot aiming to put Apple Pay in its 2,000 stores » Bloomberg Business

Matt Townsend:

Home Depot Inc. has the goal of offering Apple Inc.’s mobile-payment platform at its more than 2,000 stores, which would make it the largest retailer yet to accept Apple Pay.
“It’s something we’d like to do,” Steve Holmes, a spokesman for Atlanta-based Home Depot, said on Tuesday. However, a deal with Apple isn’t in place, so the plan isn’t final, he said. The chain, which currently accepts PayPal, also may add other kinds of mobile payment, he said.

1) “has the goal of offering”? Wouldn’t “wants to offer” serve as well, but more concisely?
2) America’s financial and payment system continues slouching into the 21st century.

LG G4: consumer reaction to G4 disappointing » BusinessKorea

Cho Jin-young with the super-earliest reaction to the G4:

the higher subsidies than the Galaxy S6 is not an attractive enough factor to promote its sales, based on customer response on the two days after release.

After the G4 was unveiled, there were also mixed views whether the model will be a big hit. There are some views that it will be difficult to accomplish the sales target of 12m units. Kim Hye-yong, an analyst from NH Investment & Securities, said, “The sales target of the G4 does not seem easy to accomplish. The competitors now have better products than they used to when the G3 was released. It seems there is no problem with performance and heating of the G4, but its high-end image could take a hit.”

On the other hand, some believe that the G4 will have better results than the G3. Park Kang-ho, an analyst at Daishin Securities, said, “The G4 will struggle at first with its weak brand status compared to the Galaxy S6 and the iPhone 6 and the limit of the product lineups. When reflecting the differentiated element of camera modules, however, the sales of the G4 this year will reach 7.7m units, surpassing the 5.8m units of the G3 in 2014.”

The G4’s camera module (from Sony?) is f/1.8 – faster (ie gathers more light) than the iPhone 6 or Samsung Galaxy S6. It also has a removable battery (remember them?) and SD storage. Whether LG can use those factors as a lever to win sales from Samsung and Apple remains to be seen. But at least they’re now USPs compared to most high-end flagships.

Nevada approves autonomous Daimler trucks » FT.com

Robert Wright:

Daimler said it had brought the new self-driving technology to the desert, southwestern state after European governments were slower to approve regulations for autonomous trucks. Nevada was also one of the first states to allow autonomous passenger cars.
However, the company said it would require far more states to accept the technology before it could show its potential by handling road freight deliveries “from coast to coast”. The vehicle will be able to operate autonomously only in Nevada — when it crosses state lines the driver will have to take the wheel.
Wolfgang Bernhard, chief executive of Daimler’s bus and truck division, said autonomous driving would sharply reduce crashes from driver error. Driver error — often a result of fatigue or distraction — leads to about 90% of crashes involving trucks…

…The vehicle has already undergone tens of thousands of hours of testing on Nevada’s roads and will be immediately available for full commercial use, although Daimler will continue to monitor its performance.
“This is not a testing licence,” Mr Bernhard said. “This is a full operating licence. We believe that these vehicles and systems are ready.”

Not mentioned: the maps provider for Daimler. That’ll be Nokia’s HERE, currently up for sale, which vehicle makers including Daimler are considering bidding for.

Hostage saves herself via Pizza Hut app: “Please help. Get 911 to me.” » Ars Technica

Cyrus Farivar:

According to a Highlands County Sheriff’s Office press release, Cheryl Treadway, a woman from Avon Park, about 85 miles southeast of Tampa, had been arguing most of the day with her boyfriend, Ethan Nickerson, who carried “a large knife.”

As the agency wrote:

When Ms. Treadway attempted to leave the residence to pick up the children from school, Mr. Nickerson grabbed her and took her cell phone. He then accompanied Ms. Treadway to pick up the children. Upon returning home, Ms. Treadway eventually convinced Mr. Nickerson to let her use the cell phone to order a pizza which is when she sent the message to Pizza Hut. Immediately after the pizza order was placed, Mr. Nickerson took the cell phone back from her.

I’m going to download the Hostage app in case I need a pizza.

About Applebot » Apple Support

Applebot is the web crawler for Apple, used by products including Siri and Spotlight Suggestions. It respects customary robots.txt rules and robots meta tags. It originates in the 17.0.0.0 net block.
User-agent strings will contain “Applebot” together with additional agent information. For example:
Mozilla/5.0 (Macintosh; Intel Mac OS X 10_10_1) AppleWebKit/600.2.5 (KHTML, like Gecko) Version/8.0.2 Safari/600.2.5 (Applebot/0.1)

Well now. Ain’t that a thing. And where would all that indexing be going, hmm?

discoveryd clusterfuck » furbo.org

Craig Hockenberry is mad and he ain’t gonna take it no more:

I started reporting these issues early in the Yosemite beta release and provided tons of documentation to Apple engineering. It was frustrating to have a Mac that lost its network connection every few days because the network interfaces were disabled while waking from sleep (and there was no way to disable this new “feature”.)
Regardless of the many issues people were reporting with discoveryd, Apple went ahead and released it anyway. As a result, this piece of software is responsible for a large portion of the thousand cuts. Personally, I’ve wasted many hours just trying to keep my devices talking to each other. Macs that used to go months between restarts were being rebooted weekly. The situation is so bad that I actually feel good when I can just kill discoveryd and toggle the network interface to get back to work.
Only good thing that’s come of this whole situation is that we now have more empathy for the bullshit that folks using Windows have suffered with for years. It’s too bad that Apple only uses place names from California, because OS X Redmond would be a nice homage.

Well, he doesn’t like having to take it. The puzzle is why Apple replaced mDNSresponder (which worked fine, as far as most people can tell) with discoveryd, which doesn’t. I’ve seen discoveryd go runaway and eat up CPU, though killing it seems to solve the problem.

Start up: mobile app freight trains, mobile trumps desktop search, the switcher thing, and more

Posted on May 6, 2015 by charlesarthur

A freight train. In mobile apps, don’t try to get in its way. Picture by Loco Steve on Flickr.

A selection of 6 links for you. No more, no less. I’m charlesarthur on Twitter. Observations and links welcome.

Why VOIP doesn’t work for emerging markets » The Big Almanack

Alan Knott Craig:

The recent annoucement of WhatsApp Calling got me thinking. If you are receiving a VOIP call you must pay for the data. In other words, unless you’re using an uncapped WiFi connection VOIP means both caller and called-party pays, unlike traditional voice for which only the caller pays.

The average data required for a voice call is about 0,5MB/minute and (in South Africa) prepaid data rates are about 10c/MB (USD). Like most emerging markets, South Africans do not have any options for uncapped mobile data.

All data is priced per MB, and most people use prepaid.

VOIP callers will therefore pay 5c/min for calls received.

This will not work. Poor South Africans do not have enough money to make calls, nevermind receive calls. The average South African living in a township or rural area uses his phone exclusively for incoming calls.

So many assumptions that are trivial in western countries just don’t work in emerging markets.

Well, We Failed. — Inside Wattage » Medium

Jeremy Bell:

The vision for Wattage was a future where anyone could manipulate matter. Where we needn’t settle for the generic, mass-produced things that currently line store shelves. A future where we can easily upgrade our old devices instead of throwing them away. Or reprogramming them to do entirely new and useful things.

We wanted to make it so creating and selling hardware was as easy as writing and publishing a blog post. You shouldn’t need to be an electrical engineer or an industrial designer to create electronic devices. Nor should you have to worry about supply chain or distribution if you wanted to sell them. We believed it was possible to eliminate all of that complexity, so the average person could easily create highly customized hardware without any electronics know-how, all within their browser.

Of course, things didn’t exactly play out that way. But why?

Because it was an impractical idea. Next, please.

Tablet market losing demand » Digitimes

Monica Chen and Joseph Tsai:

Asustek Computer is expected to ship only less than 4m tablets in the first half and is unlikely to achieve its one million unit target and most likely to stay flat from the 9.4m units from 2014 or slightly lower.

The sources pointed out that Apple’s iPad Air 2 and the iPad mini 3 both had unsatisfactory shipment performances, but the iPad mini 2, which received a price cut, had a rather strong demand, especially from China.

For the non-Apple tablet market, US$99-199 devices are the mainstream and models featuring phone function are even more popular. Although several first-tier vendors are planning to release new tablets shortly, they only placed small orders to avoid inventory build up.

Seeing tablets no longer enjoying demand as they used to, many vendors have turned to focus on developing Windows-based 2-in-1 devices or 2-in-1 Chromebooks.

Apple’s iPhone growth opportunities » Re/code

Tim Bajarin thinks there are three reasons why Apple’s iPhone sales will keep growing. The first is China (it’s big).

The second reason is due to what Apple calls “switchers.” During the recent analysts call, Apple CEO Tim Cook stated, at least five times, that demand for iPhones by those switching from other smartphone platforms are very strong. This is not a trivial fact. Our own research shows that Apple is luring millions of Android smartphone users over to the iPhone and iOS, and we have no reason to believe this will not continue for the near future. Many Android smartphone buyers opted for Android phones because of their larger screens, and that was a strong driver for Samsung and others who made phones with five-inch or 5.5-inch screens.

However, our research showed that if Apple had iPhones with larger screens, 40 percent of them would have preferred buying an iPhone over an Android smartphone. Consequently, pent-up demand by switchers has been key to Apple’s iPhone growth. As Android users move out of their two-year contracts, more and more of them will migrate to the iPhone platform. I see switchers continuing to help drive strong iPhone sales at least through early 2016.

Kantar will publish figures today (Weds) which it has hinted will have notable data about “switchers”.

Mobile design details: don’t divert the train » LukeW

Luke Wroblewski:

Polar is a fun way to collect and share opinions by making and voting on lots of photo polls. This is our freight train. We get over 40 votes per user on any given day. It’s where people spend the most time in the app and get immersed in the Polar experience.

We knew this experience could be even better if the list contained polls from people you know. So we added a prominent action in the header that allowed you to find your friends on Polar when you tapped it.

But very few people did. As it turned out, we were trying to divert the train by requiring people to go to a different part of the application to do things like find and invite friends.

So we decided to use the forward momentum of our “train” instead of fighting it. Now when someone is voting, voting, voting… the 20th poll we show them asks “Would you like to find your friends on Polar?”

Wroblewski has so many fascinating insights; this is a site to keep mining.

It’s official: Google says more searches now on mobile than on desktop » Search Engine Land

Greg Sterling:

Last year we heard informal statements from several Google employees that mobile search queries would probably overtake desktop queries some time this year. Google just confirmed this has now happened.

The company says that “more Google searches take place on mobile devices than on computers in 10 countries including the US and Japan.” The company declined to elaborate further on what the other countries were, how recently this change happened or what the relative volumes of PC and mobile search queries are now.

Google did tell us that mobile queries include mobile browser-based searches and those coming from Google’s mobile search apps. The company didn’t break down the relative shares of each.

Google groups tablets with desktops. So this is just smartphones and does not include tablets.

According to Amir Efrati, mobile searches had outnumbered desktop for the past two years in the US at weekends.

Start up: over-smart stuff, is Apple squeezing free music?, distaff Tinder, Tidal disputes payouts, and more

Posted on May 5, 2015 by charlesarthur

Soup: currently outside the “strategic horizon” of smart devices. Photo by Joi on Flickr.

A selection of 9 links for you. Go on, count them – don’t let a machine kill that job. I’m charlesarthur on Twitter. Observations and links welcome.

Dumb ‘smart’ gadgets: the bubble is set to burst » WSJ

Christopher Mims:

I believe I have identified the one thing in tech that is incontrovertibly in a bubble. To know whether a product or startup is in this category—which I’m confident will see a shakeout leaving few standing—just look for this phrase in their marketing materials: “The world’s first smart…”

The world’s first smart socks. The world’s first smart toothbrush. The world’s first smart plate, cup, fork, cutting board, stove knob, jump rope, shoes, shirt, aquarium, frying pan. The world’s first smart detector of the gas that we pass. [Yes, it’s real, though still a Kickstarter.]…

…Anthony Ortiz, the man behind the world’s first smart plate, insists that plates are just the beginning. What about fans of soup? I asked him. “If you’re going to make soup, that’s not what we do,” says Mr. Ortiz. “That would be something that goes in a bowl…. The bowl is something that could be on the strategic horizon for us.”

I bet you never knew crockery could have a strategic horizon.

Hacker implants NFC chip in his hand to bypass security scans and exploit Android phones » Forbes

Thomas Fox-Brewster:

For those who can bear the pain, biohacking, where computing devices are injected under the skin, provides a novel way to acquire real stealth to sneak through both physical and digital scans. That’s why US navy petty officer Seth Wahle, now an engineer at APA Wireless, implanted a chip in his hand, in between the thumb and the finger – the purlicue apparently – of his left hand. It has an NFC (Near Field Communications) antenna that pings Android phones, asking them to open a link. Once the user agrees to open that link and install a malicious file, their phone connects to a remote computer, the owner of which can carry out further exploits on that mobile device.

Filed for “when you need a character in a heist film who can somehow get past security scans”. Not filed under “things to worry about in the real world.”

Circa: what went wrong » Monday Note

Frederic Filloux fillets the news-aggregating failure that Twitter is reckoned to be picking up:

#3. Editorial uniqueness remains a key success factor. And Circa didn’t have it. Great packaging is one thing, but it can’t support itself without the help of original, specific, identifiable editorial. Since its inception, the web has been plagued by the commoditization of information. As social vastly amplifies that trend, being able to develop its own editorial identity remains critical for any media.

Well, Flipboard doesn’t have a “voice” (choice of stories with a consistent viewpoint) except the one you choose because it hoists on your Twitter/Facebook/etc feed). But lack of editorial “voice” is a common problem with the aggregation apps I see. I pick sites by voice. (It’s probably why you’re here.) No voice = no reason to come back.

The Dickonomics of Tinder » Medium

Alana Massey:

Some will read my gleeful rejections on the many faces I encounter on Tinder as evidence of a disturbing uptick in malevolent, anti-male sentiments among single straight women. It is not. It is evidence of us arriving nearer to gender equilibrium where men can no longer happily judge the clear and abundant photos and carefully crafted profiles of women but become incensed when they take the opportunity to do the same.

It was not always thus.

When I joined OKCupid six years ago, I dutifully created a well-rounded profile complete with accurate photos and thoughtful responses to the site’s profile prompts; though I was 23, I generously set my age limit for prospects at 40. For my efforts, I was immediately rewarded with an inbox full of messages that were mostly variations on “hey ☺” and “What up” from an army of blurry and sometimes headless mirror selfies who had either not read my profile or actively sought women with whom they’d share only mutual disdain.

Oh, this is such a wonderful piece. (Side note: published on Matter. Wasn’t that sorta a science reporting thing? No matter.) Should be obligatory reading for pretty much all males under 35.

Why energy storage is about to get big – and cheap » Ramez Naam

tl;dr: Storage of electricity in large quantities is reaching an inflection point, poised to give a big boost to renewables, to disrupt business models across the electrical industry, and to tap into a market that will eventually top many of tens of billions of dollars per year, and trillions of dollars cumulatively over the coming decades.

He things the Tesla Powerwall “is a big step towards disruption“.

Apple pushing music labels to kill free Spotify streaming ahead of Beats relaunch » The Verge

Micah Singleton:

Apple has been using its considerable power in the music industry to stop the music labels from renewing Spotify’s license to stream music through its free tier. Spotify currently has 60 million listeners, but only 15 million of them are paid users. Getting the music labels to kill the freemium tiers from Spotify and others could put Apple in prime position to grab a large swath of new users when it launches its own streaming service, which is widely expected to feature a considerable amount of exclusive content. “All the way up to Tim Cook, these guys are cutthroat,” one music industry source said.

Sources also indicated that Apple offered to pay YouTube’s music licensing fee to Universal Music Group if the label stopped allowing its songs on YouTube. Apple is seemingly trying to clear a path before its streaming service launches, which is expected to debut at WWDC in June. If Apple convinces the labels to stop licensing freemium services from Spotify and YouTube, it could take out a significant portion of business from its two largest music competitors.

As was pointed out, if someone in the music business calls you “cutthroat”, then wow. But would the labels really be able to keep free music off YouTube? They might like to, but it’s the elephant in the room in any music streaming question.

Tidal calls leaked royalty statement a fake » Digital Trends

Keith Nelson jr:

The leaked document suggests Tidal pays a weighted average of .0012 cents per stream and 70% of revenue to rights holder. That revenue share has since changed since Jay Z acquired parent company Aspiro as he proclaimed the service pays 75% to rights holders less than a week earlier.

The statement reads: “for the same period (March 2015) as this purported ‘leaked’ statement, Tidal paid an average royalty per stream of $0.024-0.028.” This would place its royalty payments at approximately four times higher than that of Spotify’s, which pays rights holders between $0.006 and $0.0084. DigitalMusicNews responded to Tidal’s statement clarifying the statement was “issued by a digital distributor servicing the independent label” but does not refute the authenticity of the statement.

Seems highly unlikely that the document would be fake to me. The only way really for Tidal to get this straight would be to publish more statements – probably not what it wants.

The (very) big fight for the small screen » Fortune

Erin Griffith:

The secret to BuzzFeed’s success—the thing that Frank, Gaulthier, CEO Jonah Peretti, and his staff of more than 900 believe makes BuzzFeed different from other media companies—is its data-driven approach. The company employs 12 data scientists and 11 researchers to crunch the numbers on the approximately 500 posts it publishes each day. Every list, listicle, article, essay, photo, video, upvote, comment, Thumbs Up, Tweet, Like, Heart, Pin, Share, Reblog, Retweet, LOL, WTF, OMG, and Ew represents a data point to be scrutinized. From there, BuzzFeed tests hypotheses to determine what made the content successful, in hopes that each successive piece of content will be even more perfectly engineered for irresistibility. “You can’t just do what [you think people] want, because people like to be surprised and exposed to new things,” says Peretti.

Unlike a Hollywood studio, which might produce five films a year, BuzzFeed is churning out an average of 50 videos a week, and taking advantage of the opportunities to test everything from characters and actors to theories about human behavior.

I’m tempted to say “The secret to Buzzfeed’s success so far“. This is the internet, and things can change quite fast.

The truth about Android apps that secretly connect to user tracking and ad sites » MIT Technology Review

Luigi Vigneri and pals from Eurecom in France have …come up with an automated way to check the apps in Google Play and monitor the sites they connect to. And their results reveal the extraordinary scale of secret connections that many apps make without their owners being any the wiser.

Vigneri and co began by downloading over 2,000 free apps from all 25 categories on the Google Play store. They then launched each app on a Samsung Galaxy SIII running Android version 4.1.2 that was set up to channel all traffic through the team’s server. This recorded all the urls that each app attempted to contact.

Next they compared the urls against a list of known ad-related sites from a database called EasyList and a database of user tracking sites called EasyPrivacy, both compiled for the open source AdBlock Plus project. Finally, they counted the number of matches on each list for every app

The results make for interesting reading. In total, the apps connect to a mind-boggling 250,000 different urls across almost 2,000 top level domains. And while most attempt to connect to just a handful of ad and tracking sites, some are much more prolific.

Vigneri and co give as an example “Music Volume Eq,” an app designed to control volume, a task that does not require a connection to any external urls. And yet the app makes many connections. “We find the app Music Volume EQ connects to almost 2,000 distinct URLs,” they say.

Their research is on ArXiv. We’ve seen this before, but not studied on this scale. (The original piece is headlined “smartphone apps”, but it’s clear this is only looking at Android, not iOS.)

Start up: Argentina v bitcoin, Secret shuts, Cyanogen dumps OnePlus, Windows10 seeks devs, and more

Posted on April 30, 2015 by charlesarthur

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

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

Expect more Cyanogen phones from Chinese vendors » PCWorld

Michael Kan:

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

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

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

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

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

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

Can Bitcoin conquer Argentina? » NYTimes.com

Nathaniel Popper:

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

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

Sunset at the Secret den » Medium

David Byttow:

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

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

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

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

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

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

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

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

Tom Warren:

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

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

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

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

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

@eric_analytics @reneritchie the revenue wasn’t worth dealing with random platform issues that crippled the app and generated support probs

— Carlos Ribas (@cribasoft) April 29, 2015

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

Doug Bock Clark:

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

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

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

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

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

Tim Bradshaw and Christian Oliver:

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

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

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

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

Apple Watch: faulty Taptic Engine slows roll out » WSJ

Daisuke Wakabayashi and Lorraine Luk:

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

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

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

Engage Android users around the world » Jana

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

By download, that is, not revenue.

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

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

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

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

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

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

Oo, interesting idea.