Start up: Apple’s QA question, the ChromeOS Pixel C?, racism on eBay, Dell’s revenue drop, and more


Why can’t China make good versions of these? Photo by superfem on Flickr.

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A selection of 9 links for you. Now free of polonium. I’m charlesarthur on Twitter. Observations and links welcome.

Steve Jobs and Apple’s iTunes gutted the music industry, Pandora CFO Mike Herring claims » Sydney Morning Herald

The chief financial officer of customising music streaming service Pandora, Mike Herring, has torn into iTunes, which had sold more than 35 billion songs as of last year.

No-one subscribes to Apple Music, Herring claimed in a conference call to investors about Pandora’s future, as reported by Billboard, even though the app exists permanently on hundreds of millions of phones.

“They spend a lot of their real estate on this phone trying to drive people to music,” Herring said. “You can’t even get it off – it’s like a permanent thing on there and still no-one subscribes.

“Well, I guess a few million people do but the reality is … to get people to choose to do that is a much bigger trick. You have to have a great product.”

Herring said Pandora was trying to bring back the music industry after a tough 15 years.

“I mean Steve Jobs eviscerated the music industry with the launch of iTunes and it’s been downhill ever since,” he said. “And the download was supposed to save it, that didn’t happen.”

“Now on-demand streaming is supposed to save it. We will see if that happens.”

Herring later apologised on Twitter for his comments and added “my own bone-headed comments don’t reflect Pandora’s perception of our partners at Apple”.

Pandora has 3.9m subscribers, and 79m users in total all in the US, according to Herring, speaking earlier in the conference call.
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Apple opens secret laboratory in Taiwan to develop new screens » Bloomberg Business

Neat scoop by Tim Culpan:

The Apple building in Longtan has at least 50 engineers and other workers creating new screens for devices including iPhones and iPads, the people said, asking not to be identified because the details aren’t public. Apple has recruited from local display maker AU Optronics Corp. and Qualcomm Inc., which used to own the building, the people said.

Kristin Huguet, a spokeswoman for Apple in Cupertino, California, declined to comment.

Apple began operating the lab this year as it aims to make products thinner, lighter, brighter and more energy-efficient. Engineers are developing more-advanced versions of the liquid-crystal displays currently used in iPhones, iPads and Mac personal computers, the people said. Apple also is keen to move to organic light-emitting diodes, which are even thinner and don’t require a backlight, they said.

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The Pixel C was probably never supposed to run Android » Ars Technica

Ron Amadeo:

In our view, the Pixel C’s irregularities all have a single explanation: the Pixel C was originally a Chrome OS device.

Back in July 2014, a new “Ryu” board (a “board” is just a reference to “motherboard” — a Chrome OS device under development) popped up in the Chrome OS open source repository. Further trips through the Chrome OS source code revealed that “Ryu” had a light bar, USB Type-C connectors, an Nvidia Tegra SoC, and wireless charging. That sounds an awful lot like the Pixel C (especially the wireless charging, which is used to charge the keyboard via the tablet’s battery when closed).

Open up the Pixel C’s software and take a look at Android’s build.prop file—which lists all sorts of base information about the device—and you’ll see “ro.product.name=ryu” listed in the properties. Based on this commit, it’s safe to say that at one point Google was definitely developing Chrome OS for its new Android tablet.

It appears that the Pixel C was planned as launch hardware for a new, all-touch version of Chrome OS which at some point got cancelled — necessitating a switch to Android. The story is a lot more complicated than that, though. What follows is the best timeline we could piece together showing the Pixel C’s troubled development history.

As Amadeo points out, Digitimes – the Taiwanese paper which people love to laugh at – actually got this exactly right during the development process back in February: “runs Android in the tablet form and Chrome when attached to a keyboard”. Then the Chrome bit went bye-bye.
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Whites earn more than blacks — even on eBay » The Washington Post

Ana Swanson:

In a study published in October by the RAND Journal of Economics, Ian Ayres and Christine Jolls of Yale Law School and Mahzarin Banaji of Harvard looked at how the race of the seller affected 394 auctions of baseball cards on eBay.

Some of the postings were accompanied by a photo of the card held by a light-skinned hand, and some with the card held by a dark-skinned hand, as in the photos above. The study shows that the cards held by an African-American hand sold for around 20 percent less than the cards held by Caucasian sellers.

In addition, the cards that were held by the African-American hand actually ended up being worth more, suggesting they should have sold for more than the other batch. That is, when the researchers added up how much they had originally paid for all of the cards sold by the black hand versus the white hand, the first total was larger.

Clever experiment design. Depressing result. Clear lesson: hide your hand in eBay photos.
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17: Worrying Apple trends with guest Russell Ivanovic » The Blerg podcast

Chris Lacy:

Guest Russell Ivanovic joins me to discuss a variety of Apple’s not-so-great recent trends. We dig into a great many of the warts increasingly appearing around Apple’s ecosystem, including the experience when first running a device, the less than universally acclaimed new Apple TV remote, the stagnant App Store and app review process, general product stability and more.

We also chat about Apple’s ever expanding and confusing product lines, Jony Ive’s accountability, as well as discussing Apple’s trend to make their cheapest product versions less appealing than was previously the case.

I’ve never linked to a podcast before, but this one, by Lacy and Ivanovic (who are both very experienced developers – Ivanovic on both iOS and Android), is really worth listening to. Many of their complaints hit home, because as Lacy says, it’s about the customer experience: if Apple neglects that, as in the experience of logging on to the new Apple TV, then what has it got? Should be required listening for Apple executives.

There’s also a followup episode, in which Rene Ritchie of iMore joins Lacy and refutes some of the points (ie, provides evidence that disproves them, not just saying “nah nah nah”) – though for others he simply says “yup” and explains why things (like the Apple TV logon) are a mess. A disclosure: I’ve previously appeared on The Blerg to talk about premium Android.
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Dell’s finances show revenue decline, similar to rivals’ » WSJ

Robert McMillan:

Dell’s revenue declined by 6% year-over-year to $14bn in its quarter ended in July. However, unlike competitors such as IBM and the former Hewlett-Packard Co., which in November split into separate corporate-computing and PC-and-printer companies, Dell’s revenues were up in the company’s fiscal year ended January 2015, rising 5%.

“Dell has executed well. We’ve invested wisely to drive growth, and we’re pleased with our performance,” said David Frink, a company spokesman.

Dell has paid off $4.5bn in debt over the past two years, but those payments left the company with less cash than it had when it traded publicly, and the move to private management hasn’t boosted profit. During Dell’s fiscal 2015, the company’s operating profit totaled $3.2bn excluding charges. In 2013, that figure was $4bn.

“These numbers reinforce that it is going to be a highly leveraged transaction,” said Toni Sacconaghi, an analyst at Sanford C. Bernstein & Co. He believes that Dell will assume a sizable debt of $51bn to conclude the deal.

“It is no surprise that they’re looking to try to sell some assets,” he said.

The purchase of EMC was always going to be a python swallowing a cow, but the python seems to be smaller and the cow a lot bigger than we thought. This could turn into a horrible mess.
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Tormented Texas plumber sues dealership over ‘jihad’ truck » LA Times

Matt Pearce:

A year ago, Mark Oberholtzer was down in Corpus Christi, Texas, when his secretary called to tell him the news:

One of his old plumbing trucks had been hijacked by jihadists.

On social media, a Syrian rebel group had posted a photo showing a black 2005 Ford F-250 — except now the plumber’s truck was thousands of miles away, armed with a large antiaircraft gun.

In the photo, an enormous flame burst from the muzzle as a rebel fired the gun from the bed. The words MARK-1 PLUMBING, plus the Texas City business’ phone number, were still clearly visible on the side of the truck, looking as if Oberholtzer had placed a NASCAR-style endorsement on militants in Syria.

If it isn’t happening to you, it’s funny. For him, it’s a nightmare, including death threats. He’s seeking $1m in damages (of course) from the dealership he sold the truck to in October 2013.
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Why can’t China make a good ballpoint pen? » Marketplace.org

Rob Schmitz:

After [Chinese premier Li Keqiang] grumbled about Chinese pens last June, state-run broadcaster CCTV devoted an hour-long program to the topic, a talk show where three CEOs of China’s most innovative and successful manufacturers sat onstage alongside a host. Sitting nervously at a table in front of the studio audience was Qiu Zhiming, president of one of China’s largest pen manufacturers. Qiu explained to the other CEOs that China supplies 80% of the global market for pens.

The core technology of each pen — the stainless steel ball and its casing — is imported from Japan, Germany, or Switzerland, said Qiu. Only Switzerland, he said, has a machine with the precision required to make the best ballpoint pen tips. China, Qiu said sadly, hasn’t developed a machine like this.

Dong Mingzhu, the CEO of Ge li (Gree), a Chinese air conditioner manufacturer, frowned at Qiu from her perch onstage.

“Think about it. How much money have the foreigners made from us because they have better technology?” asked Dong. “You don’t have this technology and they’re taking your profits! You know what I’m going to do? I’ll have my best people make you a machine like the Swiss have! I’ll make it in a year and sell it to you for half the price!”

I am honestly surprised that there aren’t machines in China capable of making the balls to the correct tolerances. Schmitz’s piece points to more widely felt unease among manufacturers in China: the home market isn’t sufficiently rewarding.
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The $75,000 problem for self-driving cars is going away » The Washington Post

The problem being the initially expensive LIDAR (laser interferometry detection and ranging) systems that the SDCs use to figure out where they are, and what’s around them, as Matt McFarland explains:

Velodyne and other players in the self-driving space are delivering drastically cheaper LIDAR, suggesting the price of the sensors won’t hold back the rollout of autonomous driving.

“Our customers are telling us they want it to be below $100, that’s kind of the roadmap we’re working from in the back of our mind,” Eggert said.

Velodyne is developing a sub-$500 LIDAR sensor, the VLP-32, that it says will be powerful enough for high-level assisted driving, and autonomous driving. (It declined to reveal exact technical specifications.) Velodyne has development contracts with two manufacturers, one in North America and one in Japan, to deliver the sensor in the first four months of 2016.

And the new sensor isn’t going to be a hulking piece of equipment either. It’s small enough that some players have expressed interest in putting the sensor in vehicle side mirrors. Others may put it on the roof, the easiest way to get a 360-degree view.

Quanergy chief executive Louay Edlada believes LIDAR will cost below $100 in five years. It’s releasing a solid state LIDAR — meaning none of the parts move — next month for $250.

That’s $75,000 to $250 in about eight years – halving in price every year. (Is it a Moore’s Law system?)
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Errata, corrigenda and ai no corrida:

Start up: the convertible laptop dream, Pagefair’s malvertising hack, Samsung’s bulging bottom, and more


Keeping your personal information out of other sites is hard too. Photo by xiaming on Flickr.

You can now sign up to receive each day’s Start Up post by email. You’ll need to click a confirmation link, so no spam.

A selection of 10 links for you. Count them if you like. I’m charlesarthur on Twitter. Observations and links welcome.

Laptop is a state of mind | Karma

Paul Miller:

There’s no such thing as “best of both worlds” in computers. Choices matter. Hybrids like the Surface Book are great for people who perfectly straddle the tablet and laptop use cases — who constantly switch between keyboard and pen, desk and walk-and-talks, angry memos and Angry Birds. Everyone else’s perfect “laptop” will probably be a lot more boring, and a good deal cheaper.

But.

You know what would be cool? A world where we actually needed Surface Books. What if our lives were like Microsoft Surface commercials? We’d flit effortlessly between different roles. An architect for one moment, consulting with a professional on your home remodel. Then you’re drawing up a clever football play for Russell Wilson. Then you’re playing Madden, streamed from your Xbox. Then you’re answering work emails and flicking away distractions with your finger. And then you’re in some big song-and-dance number, and you can’t even remember where you put your Surface Book because your life is amazing and who even cares anymore you’re going to die happy, loved by your family and respected by your peers.

The Surface Book is not an inferior product because its hardware is too ambitious. It’s an inferior product because its hardware is more ambitious than the digital lives we’ve thus far concocted.

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CryptoWall 3.0 cost victims $325m – report » Infosecurity Magazine

Phil Muncaster:

The report noted:

“It was discovered that a number of primary [bitcoin] wallets were shared between campaigns, further supporting the notion that all of the campaigns, regardless of the campaign ID, are being operated by the same entity.”

Unfortunately for those unlucky enough to get infected by CryptoWall 3.0, the report paints the picture of a highly efficient operation running solid encryption, meaning victims usually do have to pay up to get their files back.

Even an FBI Special Agent was quoted as saying last week that it might be better for infected businesses to just pay the ransom.

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Who knows what about me? A survey of apps’ behind-the-scenes personal data sharing to third parties » Technology Science

Jinyan Zang, Krysta Dummit, James Graves, Paul Lisker, and Latanya Sweeney:

We found that the average Android app sends potentially sensitive data to 3.1 third-party domains, and the average iOS app connects to 2.6 third-party domains. Android apps are more likely than iOS apps to share with a third party personally identifying information such as name (73% of Android apps vs. 16% of iOS apps) and email address (73% vs. 16%).

For location data, including geo-coordinates, more iOS apps (47%) than Android apps (33%) share that data with a third party. In terms of potentially sensitive behavioral data, we found that 3 out of the 30 Medical and Health & Fitness category apps in the sample share medically-related search terms and user inputs with a third party.

Finally, the third-party domains that receive sensitive data from the most apps are Google.com (36% of apps), Googleapis.com (18%), Apple.com (17%), and Facebook.com (14%). 93% of Android apps tested connected to a mysterious domain, safemovedm.com, likely due to a background process of the Android phone. Our results show that many mobile apps share potentially sensitive user data with third parties, and that they do not need visible permission requests to access the data.

Hardly seems a source of complaint if they’re sharing with Google and Apple, if it’s with permission. As for safemovedm.com, it seems to exist – since February 2008 – but not actually be active in any way; that makes it sound like an Android function.
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Chrome OS is here to stay » Google Chrome Blog

Hiroshi Lockheimer, SVP Android, ChromeOS and Chromecast:

Over the last few days, there’s been some confusion about the future of Chrome OS and Chromebooks based on speculation that Chrome OS will be folded into Android. While we’ve been working on ways to bring together the best of both operating systems, there’s no plan to phase out Chrome OS.

With the launch of Chrome OS six years ago, we set out to make computers better—faster, simpler and more secure—for everyone. We’ve since seen that vision come to life in classrooms, offices and homes around the world. In fact, every school day, 30,000 new Chromebooks are activated in U.S. classrooms—that’s more than all other education devices combined. And more than 2 million teachers and students in more than 150 countries have the Share to Classroom Chrome extension, which launched in September and gets students onto the same webpage, instantly. Meanwhile, companies such as Netflix, Sanmina, Starbucks and of course Google, are using Chromebooks given the ease of deployment, the ability to easily integrate with existing technologies, and a security model that protects users at all levels, from hardware to user data. (Chromebooks are so secure you don’t need antivirus software!)

“Working on ways to bring together the best of both operating systems” implies that the two are coming together somehow – you wouldn’t have a third OS. Android isn’t going away. So Lockheimer hasn’t explained how ChromeOS is here to stay; instead, by avoiding the question while also acknowledging that something is happening, he’s making it more mysterious.
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The Apple iPhone 6s and iPhone 6s Plus review » Anandtech

Ryan Smith and Joshua Ho:

The only real issues I can think of are that the iPhone 6s doesn’t have OIS and that the base SKU is still 16GB of storage. To be fair, the 16GB SKU can become a noticeable user experience issue if you’re constantly dealing with the limits of this storage, and the jump from 16 to 64 GB feels like it’s simply designed to encourage buying a more expensive SKU. There are arguments that users that don’t really take a ton of photos or videos and stream all their media will be fine, but it’s still a user experience problem in this day and age. However, despite these issues I would argue that the iPhone 6s’ are the best phones you can buy today.

Of course, this sounds like a rather hollow recommendation to those that have followed our reviews for the past year. This year, more than ever it feels like Android smartphones at the high end have stood still, as if smartphone improvements have become a zero sum game. To make the best phone this year is therefore a pretty low bar to clear.

The benchmarks, especially for storage, are remarkable: the new iPhones seem to knock everything aside in the raw processing power space. They stumble only a little in the battery life area, and even there it’s not a huge difference. (Thanks @papanic for the link.)
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Samsung sells more phones — but for less money » WSJ Digits blog

Jonathan Cheng:

Samsung has been selling more cheaper smartphones, and fewer high-end premium devices, than it did even compared to Samsung’s rocky 2014, according to numbers from data firm Counterpoint Technology Market Research.

Samsung doesn’t separately disclose smartphone sales numbers.

Samsung shipped 84m smartphones in the third quarter of 2015, 6.3% more than during the same stretch last year and more than the No. 2 and No. 3 players, Apple and Huawei Technologies, combined, according to Counterpoint.

But while 55% of its smartphones were priced at $301 per unit or more at this time last year, that high-end segment has fallen to just 40% of Samsung’s overall smartphone sales, Counterpoint said.

Phones priced $200 or below now account for 38% of total units shipped at Samsung, versus 30% this time last year.

So while Samsung is indeed shipping more smartphones, it isn’t charging as much for them — or making as much money from them as it may have during the salad days of 2012 and 2013.

But the numbers also suggest that Samsung is willing and able to take the fight to the low-cost Chinese competitors that emerged in 2013 and 2014, eating away at its market share and profits.

If you calculate the numbers (I did) this means that Samsung sold 10m fewer phones in the $300+ bracket than last year – effectively ceding that chunk of the market to Apple – and sold 8m more than last year in the sub-$200 bracket.
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Brazilian smartphone users quicker to adopt new Android OS than Indian users » Jana Blog

Globally, 93% of Android users are using versions of either the Lollipop, KitKat, or Jelly Bean operating systems on their devices. When we looked at the market share of each Android OS in India and Brazil among mCent users, we saw a similar theme. 98% of mCent users in India and 97% of users in Brazil are using either Lollipop, KitKat, or Jelly Bean. KitKat is the most popular OS among mCent users in both countries…

…In the case of Samsung, the top device brand in India and Brazil, older versions of the Galaxy and the Note will never get the new Marshmallow OS update. So while some users may want to upgrade, they simply may not be able to depending on which device and carrier they have…

…When looking across the three popular Android OS, Lollipop, KitKat, and Jelly Bean, Brazilian users are currently pretty evenly spread out across the three. But when we look at India, the majority of users—52%— are on KitKat. As users in Brazil move to new operating systems, users in India are staying on older OS versions much longer.

This is hardly amazing; Jelly Bean was released in late 2012. You’d be more surprised if newcomers to the smartphone market were on much older OSs.
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What do recruiters look for in a resumé at first glance? »Quora

Abra Benjamin responded:

Our world is a lot simpler than you think. “Does this candidate seem like they stand a chance of being a good match for this role? If yes, proceed to next step. If no, reject.” Each recruiter is different, so there’s no one way to answer this question. But I’ll highlight briefly (actually, not so briefly) how I personally absorb a resume.  I should preface this by saying that currently I primarily recruit for senior-level software engineers.

It’s definitely useful if you’re looking around for jobs, especially the stuff about education not mattering much, nor formatting (duh), nor “uncomfortably personal details”, nor cover letters.
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Halloween Security Breach » Inside PageFair

Pagefair being, of course, the company which is complaining about the cost of adblocking to publishers, and which offers analytics to them:

If you are a publisher using our free analytics service, you have good reason to be very angry and disappointed with us right now. For 83 minutes last night, the PageFair analytics service was compromised by hackers, who succeeded in getting malicious javascript to execute on websites via our service, which prompted some visitors to these websites to download an executable file. I am very sorry that this occurred and would like to assure you that it is no longer happening.

The attack was sophisticated and specifically targeted against PageFair, but it is unacceptable that the hackers could gain access to any of our systems. We identified the breach immediately, but it still took over 80 minutes to fully shut it down.  During this time, visitors to websites owned by the publishers who have placed their trust in us were targeted by these hackers.

The damage was mitigated by our standard security practices, but the attackers still gained access.  I want to take some time here to describe exactly what happened, how it may have affected some of your visitors, and what we are doing to prevent this from ever happening again.

Spearphish email to take over account on CDN (Content Distribution Network) which offered a fake Adobe Flash advert which would install a bitcoin mining trojan. The breach was spotted within 5 minutes – but it took another 80 to regain control. Among the sites infected was Anandtech.

Once more, episodes like this make people who use adblockers utterly certain that they’ve made the right decision, while making those who haven’t wonder if they should. It’s a ratchet.
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Apple indoor positioning app ‘Indoor Survey’ spotted on iOS App Store » Apple Insider

Mikey Campbell:

According to Indoor Survey’s iOS App Store page, spotted by developer Steve Troughton-Smith, the Apple-branded software enables indoor positioning within a venue by using radio frequency signals and an iPhone’s onboard sensors.

“By dropping ‘points’ on a map within the Survey App, you indicate your position within the venue as you walk through,” reads the app description. “As you do so, the indoor Survey App measures the radio frequency (RF) signal data and combines it with an iPhone’s sensor data. The end result is indoor positioning without the need to install special hardware.”

While not an exact match, the described system smacks of technology pioneered by indoor positioning startup WiFiSLAM, a Silicon Valley firm Apple snapped up for $20m in 2013.

Google has been doing something similar since 2012 for museums and a SLAM (simultaneous location and mapping) system since September 2014.
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