Start up: deeper inside Nest, slower smartphone sales, smaller Yahoo, ransomware spreads further, and more

Fight!

Just another meeting between Nest and Dropcam. Creative Commons-licensed photo by Steve Liddle on Flickr.

You can now sign up to receive each day’s Start Up post by email (though you won’t see any instalments for a week, because I’ll be away). You’ll need to click a confirmation link, so no spam.

A selection of 9 links for you. There are no April Fools in this, thank God. I’m charlesarthur on Twitter. Observations and links welcome.


Please note: next week The Overspill will be on a spring break.

Service resumes on 11 April.


 

Nest revenue around $340m last year, but budget troubles ahead » Re/code

Mark Bergen with a remarkable scoop:

»Nest generated about $340m in sales last year, according to three people with knowledge of the matter. That’s an impressive figure for a company in the very nascent market of Internet-connected devices.

But it’s below the initial expectations Google had set for Nest when it bought the startup in 2014 for a whopping $3.2bn. The company’s sales performance may face even deeper scrutiny inside Google’s new parent company, Alphabet, where Nest now sits, as the hardware maker faces its most critical year ever.

Nest’s plight is a far cry from two years ago, when it was brought on as one of Google’s biggest acquisitions as a vehicle to compete with Apple in the growing smart-home market. Google also brought on CEO Tony Fadell, a former Apple exec, to inject Google with Apple’s hardware sensibility. But now its future is up in the air, as it’s clearly fallen short of those lofty expectations…

…To keep employees from leaving after the acquisition, Google created a vesting schedule that prevents Nest’s executives from cashing out their shares before a certain date — that date could come as soon as this year. In addition, according to sources, as part of the acquisition, Nest and Google agreed on a sales target for the company: $300m annually.

Two years later, Nest still could not hit that target alone — it did it only after adding sales from Dropcam, which Nest acquired for $555m six months after joining Google.

«

It’s pretty clear from the past week, starting with Reed Albergotti’s amazing piece for The Information, that there’s almost open warfare between Nest and Dropcam. The last detail, about Dropcam making up the sales number, could only have come from a senior Dropcam source who knows the revenues in some detail.

The question now is, what will Larry Page – chief executive of Alphabet, and so Nest – do?

link to this extract

 


Gartner says global smartphone sales to only grow 7 per cent in 2016

»Gartner, Inc. said global smartphone sales will for the first time exhibit single-digit growth in 2016. Global smartphone sales are estimated to reach 1.5bn units in 2016, a 7% growth from 2015. The total mobile phone market is forecast to reach 1.9bn units in 2016.

Worldwide combined shipments for devices (PCs, tablets, ultramobiles and mobile phones) are expected to reach 2.4bn units in 2016, a 0.6% increase from 2015. End-user spending in constant US dollars is estimated to decline by 1.6% year on year…

…”The double-digit growth era for the global smartphone market has come to an end,” said Ranjit Atwal, research director at Gartner. “Historically, worsening economic conditions had negligible impact on smartphone sales and spend, but this is no longer the case. China and North America smartphone sales are on pace to be flat in 2016, exhibiting a 0.7% and 0.4% growth respectively.”

While smartphone sales will continue to grow in emerging markets, the growth will slow down. Gartner predicts that, through 2019, 150 million users will delay upgrades to smartphones in emerging Asia/Pacific, until the functionality and price combination of a low-cost smartphone becomes more desirable.

“Prices did not decline enough to drive upgrades from low-end feature phones to low-end smartphones,” said Annette Zimmermann, research director at Gartner. “Vendors were not able to reduce the price of a ‘good enough to use’ smartphone lower than $50.”

«

So $50 seems to be the baseline price that smartphones can’t go below. Still, they’ll make up 79% of sales; that only leaves 400m featurephones to be sold.
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3 in 10 would consider buying an iPhone » Global Web Index

Jason Mander:

»With many seeing Apple’s more affordable iPhone SE handset as an attempt to win new customers in fast-growth markets, today we look at where the iPhone name resonates the most strongly.

Globally, it’s almost 3 in 10 internet users who say they would consider purchasing an iPhone – putting Apple at the top of the table, just ahead of Samsung on 24%.

But split this by country and it’s clear that the iPhone has its biggest appeal in emerging markets. Although as many as 25% in places like the UK and USA as well as 20% in Japan would consider getting one, fast-growth markets occupy 14 of the top 15 slots (including China and India, which are particularly key given their booming numbers of internet users).

«

“Would consider” is a long way from “will buy” which is some distance from “bought”. But it shows Apple’s power as an aspirational brand that it’s emerging markets where people want it.
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Security researchers warn of server-attacking ransomware » Computer Weekly

Warwick Ashford:

»As a growing number of US hospitals report ransomware attacks, researchers are warning of a new strain of ransomware targeting the healthcare sector that attacks servers in order to lock up entire networks.

Unlike most other malware that encrypts data and demands ransom for its release, the Samas strain of ransomware does not rely on user-focused attack vectors such as phishing emails.

Instead, Samas – also known as Samsam and MSIL.B/C – is distributed by compromising servers and using them to move laterally through networks to encrypt and hold multiple data sets to ransom.

«

Interesting evolution of this malware: clearly it has staying power.
link to this extract

 


Web scraping to create open data » The Scrapinghub Blog

Lluis Esquerda:

»When I started this project, I sought to make a difference in Barcelona. Now you can find tons of bike sharing apps that use our API on all major platforms. It doesn’t matter that these are not our own apps. They are solving the same problem we were trying to fix, so their success is our success.

Besides popular apps like Moovit or CityMapper, there are many neat projects out there, some of which are published under free software licenses. Ideally, a city council could create a customization of any of these apps for their own use.

Most official applications for bike sharing systems have terrible ratings. The core business of transportation companies is running a service, so they have no real motivation to create an engaging UI or innovate further. In some cases, the city council does not even own the rights to the data, being completely at the mercy of the company providing the transportation service.

When providing public services, city councils and companies often get lost in what they should offer as an aid to the service. They focus on a nice map or a flashy application, rather than providing the data behind these service aids. Maps, apps, and websites have a limited focus and usually serve a single purpose. On the other hand, data is malleable and the purest form of representation. While you can’t create something new from looking and playing with a static map (except, of course, if you scrape it), data can be used to create countless different iterations, help with research. It can even provide a bridge that will allow anyone to participate, improve and build on top of these aids to public services.

«

link to this extract

 


Report: Yahoo’s ad revenue to drop 14 percent this year » Digiday

Jordan Valinsky:

»Yahoo’s ad revenues are forecasted to drop 14% this year while its competitors, including Google and Facebook, are expected to grow.

According to a new eMarketer report on ad spending, Yahoo’s global ad revenues will dip to $2.8 billion this year, down from $3.3bn last year. Its overall share of the ad market will shrink from 2.1% to 1.5%.

That’s more bad news for the Marissa Mayer-led company. In an attempt to cut $400m, Yahoo announced last month that it’s in the process of shuttering offices, slashing 15% of its workforce and is backing away from its once-ambitious content efforts by closing down a number of its verticals, like Travel and Autos. All of this is happening while rumors swirl that Yahoo is considering selling itself.

«

Yahoo is the BlackBerry of the online ad business.
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Why I got rid of Adblock Plus » David Hewson

Hewson is a novelist and journalist:

»Ad blockers take away important revenue streams from companies that need them. Only last week the Independent, where I worked during its launch thirty years ago, shut up shop as a print title. I don’t suggest for one moment it would have survived if ad blockers didn’t exist. But it might have done a little better. The Guardian now, like more and more titles, nags you to turn off its ad blocker these days. Given the phenomenal losses it’s incurring — £53m last year — who can blame it? If things don’t turn round it could be the next to go — and what a loss that would be.

So turning off the ad blocker pays a little towards the news I read for free and I’m happy to go along with that idea. But something else changed my mind too, and it was, oddly enough, a speech by the Culture Secretary, John Whittingdale, in which he described ad-blocking as ‘a modern-day protection racket’. Nor is he the only one to think this.

«

Whittingdale’s ire was actually aimed at Eyeo (purveyor of Adblock Plus); there are however other adblocking solutions which don’t use Eyeo’s systems. The problems at The Guardian and The Independent aren’t caused by adblocking, though.
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Where’s the lane? Self-driving cars confused by shabby U.S. roadways » Reuters

Alexandria Sage:

»Volvo’s North American CEO, Lex Kerssemakers, lost his cool as the automaker’s semi-autonomous prototype sporadically refused to drive itself during a press event at the Los Angeles Auto Show.

“It can’t find the lane markings!” Kerssemakers griped to Mayor Eric Garcetti, who was at the wheel. “You need to paint the bloody roads here!”

Shoddy infrastructure has become a roadblock to the development of self-driving cars, vexing engineers and adding time and cost. Poor markings and uneven signage on the 3 million miles of paved roads in the United States are forcing automakers to develop more sophisticated sensors and maps to compensate, industry executives say.

Tesla CEO Elon Musk recently called the mundane issue of faded lane markings “crazy,” complaining they confused his semi-autonomous cars.

An estimated 65% of U.S. roads are in poor condition, according to the U.S. Department of Transportation, with the transportation infrastructure system rated 12th in the World Economic Forum’s 2014-2015 global competitiveness report.

«

Make America Navigable By Autonomous Cars Agai.. um, For The First Time.
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Citymapper launches seamless routing between cabs and public transit » TechCrunch

Mike Butcher:

»Citymapper is making a significant change to its routing app with the news that it has added what it is calling a “SuperRouter” capability. This effectively combines public transit with cabs to create completely new integrated routes. In simple terms, it means you could ask Citymapper’s app to come up with a route, and it would give you options both a cab service like Uber and a train or tram in a fully integrated route, with all the timetables. That could be transformational for people in cities, and something no other platform has tried to date, as far as we know. The change will apply to every city Citymapper is launched in right now, which includes New York, San Francisco, LA, London, Paris, Berlin, Rome, Madrid, Tokyo and many other global cities.

In normal circumstances it’s basically impossible to plan a journey across public and private car transport. That leads to what you might call unfair discrimination between these transport modes. But in the 21st century, where private cars can be tracked on a map, there is simply no reason for this separation to exist.

«

None at all! Except that it’s difficult.
link to this extract

 


Errata, corrigenda and ai no corrida:

Start up: the $200k iPhone hack, sleep robot axed, the criminal who wrote Truecrypt, If This Then No, and more

Dropcam’s founder gives you fresh insight into what happened at Nest. It’s not pretty. Photo by Ravi Shah on Flickr.

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

A selection of 13 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

The Dropcam Team » Medium

Former Dropcam CEO Greg Duffy proves that revenge is a dish that you can savour at any temperature, as he hits back as Tony Fadell’s claims that the Dropcam team (acquired by Google, folded into Nest) “weren’t up to much”:

»I can’t publish Dropcam’s revenue, but if you knew what percentage of all of Alphabet’s “other bets” revenue was brought in by the relatively tiny 100-person Dropcam team that Fadell derides, Nest itself would not look good in comparison. So, if Fadell wants to stick by his statement, I challenge him to release full financials (easy prediction: he won’t).

The ~50 Dropcam employees who resigned did so because they felt their ability to build great products being totally crushed. All of us have worked at big companies before, where it is harder to move fast. But this is something different, as evidenced by the continued lack of output from the currently 1200-person team and its virtually unlimited budget. According to LinkedIn, total attrition to date at Nest amounts to nearly 500 people, which suggests that we were not alone in our frustrations.

«

On Medium, this is covered in highlights by people who went “ooh! This bit! Ooh! This bit too!” It’s an amazing takedown of Fadell.
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Google is completely redesigning AdWords: Offers first peek » Search Engine Land

Ginny Marvin:

»“The reason we’re rebuilding AdWords is because the world has changed so much in the past two years. AdWords is now over 15 years old and launched when Google was just figuring out what search advertising was. We rebuilt it several years ago for a desktop world — smartphones were only [a] year old. Now we are in probably the biggest shift since AdWords was introduced (and I’d argue perhaps ever) with mobile,” said [AdWords product management director Paul] Feng, “And there is now increased demand on marketers and on AdWords as a platform — advertisers are running ads in search, display, shopping, mobile, video. Ultimately, that’s why we’re re-imagining AdWords.”

Feng said the redesign has been informed largely by talking to advertisers across the spectrum. Three common themes emerged. First, advertisers said it felt like AdWords has been built around products and features, rather than marketers’ needs and objectives. “How the navigation is laid out can be un-intuitive and comes with a high learning curve,” said Feng.  Second, the platform has grown complex, with hundreds of features launching every year that stack up on each other. And third, the basic design looks and feels kind of dated. “The goal is to create a flexible platform for the future,” added Feng.

«

Amazing that it was last redesigned in 2008, which is basically pre-mobile. Quite a challenge to get that legacy code to look and work right.
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Top talent leaves Google startup Verily under divisive CEO » STAT

Charles Piller:

»Google’s brash attempt to revolutionize medicine as it did the Internet is facing turbulence, and many leaders who launched its life sciences startup have quit, STAT has found.

Former employees pointed to one overriding reason for the exodus from Verily Life Sciences: the challenge of working with CEO Andrew Conrad.

Verily, one of Google’s “moonshots,” pursues ambitious, even radical, ideas that could take years to pay off. The emerging Silicon Valley juggernaut has attracted elite scientists, engineers, and data crunchers, and inspired buzz about its futuristic projects — as well as envy among competitors nervously eyeing this upstart with a seemingly unlimited bankroll.

The three-year-old venture has operated largely out of public view and carefully manages its image; employees said talking to a reporter without permission is a firing offense.

But people who know Conrad or have worked with him said in interviews that Google has entrusted its life sciences initiative to a divisive and impulsive leader whose practices are driving off top talent and leaving openings for competitors. They said many employees in key jobs were dispirited, and described a lack of focus and clear priorities that is unusual even in the chaotic culture of startups.

«

Trying to sell Boston Dynamics, got a fire in Nest, and now this. Alphabet is finding that being the second GE requires a second Jack Welch. Great reporting by Piller.
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It’s game over for the robot intended to replace anesthesiologists » The Washington Post

Todd Frankel:

»the Sedasys machine was being used in just four hospitals, including the one we visited in Toledo. We watched as the Sedasys device provided basic anesthesiology services to a series of patients undergoing routine endoscopies and colonoscopies.

No longer did you need a trained anesthesiologist. And sedation with the Sedasys machine cost $150 to $200 for each procedure, compared to $2,000 for an anesthesiologist, one of healthcare’s best-paid specialties.  The machine was seen as the leading lip of an automation wave transforming hospitals.

But Johnson & Johnson recently announced it was pulling the plug on Sedasys because of poor sales.

«

Why? Humans campaigned against it.
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He always had a dark side » The Atavist

Evan Ratcliff:

»Before encryption was a mainstream idea, before Apple defied a U.S. government request to provide a method to unlock our phones, this Le Roux had written the underlying code of a program that, a decade and a half later, the National Security Agency still could not break.

The question was: Could the Le Roux who politely answered jargon-laden posts about encryption software be the same one who ordered the murder of a real estate agent over a bad deal on a beach house? At first I thought I would never know. The former Paul Le Roux seemed to have disappeared from the Internet in 2004. Encryption experts I contacted had no idea what had become of that Le Roux, and there was no evidence linking him to the man known for drugs and gun running.

One night in October, I had been at the computer for hours when I finally found the missing link. It was a website once registered to the encryption Le Roux, in the early 2000s, and later transferred to a Philippine company controlled by the crime-boss Le Roux. My immediate reaction upon discovering this connection was a sudden and irrational fear…

«

You can already see why. Le Roux seems to have written TrueCrypt, which has near-mythic status in encryption circles.
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Met police chief blaming the victims » Light Blue Touchpaper

Ross Anderson, professor of security engineering at the University of Cambridge, wrote a letter to The Times:

»[Met Police commissioner] Sir Bernard Hogan-Howe argues that banks should not refund online fraud victims as this would make people careless with their passwords and anti-virus software (p1, March 24, and letters Mar 25 & 26). This is called secondary victimisation. Thirty years ago, a chief constable might have said that rape victims had themselves to blame for wearing nice clothes; if he were to say that nowadays, he’d be sacked. Hogan-Howe’s view of bank fraud is just as uninformed, and just as offensive to victims.

About 5 percent of computers running Windows are infected with malware, and common bank fraud malware such as Zeus lets the fraudster redirect transactions. You think you’re paying £150 to your electricity bill, while the malware is actually sending £9000 to Russia. The average person is helpless against this; everything seems normal, and antivirus products usually only detect it afterwards.

Much of the blame lies with the banks, who let the users of potentially infected computers make large payments instantly, rather than after a day or two, as used to be the case. They take this risk because regulators let them dump much of the cost of the resulting fraud on customers.

«

Hogan-Howell really put his foot in it, but it’s the inertia that he represents – and the attempt to shift the blame – which is the most insidious.
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Who unlocked the San Bernardino iPhone? » Perizie Informatiche Forensi

Paolo Dal Checco:

»Yesterday, Monday, March 28th, FBI purchased from Cellebrite $218.000 of “INFORMATION TECHNOLOGY SUPPLIES”  [WBM].

It might be a simple coincidence, but if we issue the query  «CONTRACTING_AGENCY_NAME:”FEDERAL BUREAU OF INVESTIGATION” VENDOR_FULL_NAME:”CELLEBRITE USA CORP“» on the FPDS search engine, in the EZ Search section, we can see and download the full history of purchase orders issued by “FEDERAL BUREAU OF INVESTIGATION” to “CELLEBRITE USA CORP”. We can observe that since September 2009 Cellebrite was given 187 purchase orders, but the purchase order issued yesterday, with ID “DJF161200G0004569”, is rather unique in that:

• it’s the only one with an action obligation of more than $ 200.000 issued with “CELLEBRITE USA CORP” (the average for purchase orders is about  $11.000);
•it’s the only one with the “INFORMATION TECHNOLOGY SUPPLIES” description and PSC type “7045”;
• it was issued yesterday, when the US Government published a note informing that the San Bernardino iPhone was successfully unlocked and data was successfully accessed, presumably by an “outside party” as they said in the previous note.

In conclusion, we don’t know if Cellebrite was involved in San Bernardino iPhone PIN unlocking, we know that Cellebrite is able to unlock iPhons up to iOS 7 and iOS8 with 32bit processors and on iPhone 4s/5/5c, iPad 2/3/4, iPad Mini 1 and… the coincidence of yesterday’s purchase order is rather weird.

«

So that’s wrapped up: Cellebrite is licensing the unlock technique to the FBI. (Jonathan Zdziarski reckons the $200,000 price is too low to be a complete sale, but high enough to suggest it works against lots of models.)
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Apple acknowledges iOS 9 crashing bugs when tapping links, fix coming ‘soon’ with a software update » 9to5Mac

Benjamin Mayo:

»Since posting our original story, we have heard from a lot of readers that are affected by iOS 9 crashes or app hangs when tapping links, spanning multiple iOS versions (not just 9.3) and devices. In a statement, Apple has now confirmed that they are working on a fix for the problem, coming in a software update (presumably iOS 9.3.1).

»

“We are aware of this issue, and we will release a fix in a software update soon.”

«

A temporary workaround is still unknown, although community investigations have revealed why the bug has arisen. It is based on what apps the user has installed and how those apps handle universal links.

Previously, we pinpointed Bookings.com as a cause of the bug, although noting it affects other apps as well. On Twitter, it was found that their website association file, used by the system for the universal links feature introduced with iOS 9, was many megabytes, grossly oversized. This would essentially overload the daemon that had to parse these files, causing the crashing.

«

Linked yesterday. There is a workaround, involving toggling Airplane mode, deleting the offending app, restarting and so on. Not much fun.
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David Cameron drops bombshell privatisation announcement then catches a plane to Lanzarote » The Canary

Kerry-Anne Mendoza:

»The government is selling off the Land Registry to private, profit making interests.

The government has also ordered local authorities to transfer up to 90% of brown field sites (previously developed sites that have become vacant, contaminated but could be reused) into the hands of the Homes and Communities Agency (the latest quango) where Eric Pickles (and his successors) and just two inspectors will control the planning decisions.

The Infrastructure Bill contains a clause which will allow ALL public land to be privatised. There’s no need to reference the Forestry Act 1967, the Countryside Rights of Way Act or any other protective law, because Schedule 3 of the Bill states that “the property, rights and liabilities that may be transferred by a scheme include… property, rights and liabilities that would not otherwise be capable of being transferred or assigned.”

In plain English, this means all preceding regulations, legislation and other protections for this site are null and void – fill your boots.

«

First the Land Registry, now this. It would be great if there were an effective political opposition in the UK.
link to this extract

 


Presentation: Mobile ate the world » Benedict Evans

»Updated for spring 2016, this is a snapshot of why mobile matters, where it is and where it’s going. I’ve written quite a lot of blog posts discussing these issues, which I collated in this [other] post.

«

76-slide presentation, with lots of subtle points in it to absorb; I think that AI will play a more important role than is immediately obvious, because it can be subsumed into the device. That, though, isn’t what the platform opportunity is about.
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My heroic and lazy stand against IFTTT » Pinboard Blog

Maciej Ceglowski:

»A service like IFTTT [If This Then That] writes “shim code” that makes it possible to connect online services together like Lego. Everything slots into everything else. This is thankless, detailed work (like developing TurboTax or Dropbox) that when done right, creates a lot of value.

IFTTT has already written all this shim code. They did it when they were small and had no money, so it’s difficult to believe they have to throw it away now that they have lots of staff and $30m.

Instead, sites that want to work with IFTTT will have to implement a private API that can change without warning.

This is a perfectly reasonable business decision. It is always smart to make other people do all the work.

However, cutting out sites that you have supported for years because they refuse to work for free is not very friendly to your oldest and most loyal users. And claiming that it’s the other party’s fault that you’re discontinuing service is a bit of a dick move.

I am all for glue services, big and small. But it’s better for the web that they connect to stable, documented, public APIs, rather than custom private ones.

And if you do want me to write a custom API for you, pay me lots of money.

«

Ceglowski’s laconic humour is also razor-sharp; his tweets (on @pinboard) are worth a read, such as one from August 2014 after IFTTT got some venture funding: “Right now the IFTTT business model is to charge one user $30M, rather than lots of users $2. The challenge will be with recurring payments.” Ceglowski yesterday quoted his own tweet, and added “That man was a prophet.” (I use Pinboard to generate Start Up.)
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The new iPhone may have a China problem » CNBC

Eunice Yoon:

»Apple’s new iPhone SE launches on Thursday and preliminary numbers at Chinese retailers suggest decent demand — but the black market tells a more mixed story.

The US tech giant started taking pre-orders for the smartphone on March 24 and has not released official figures. However, as of Monday in Beijing, total pre-orders on three retailing sites exceeded 3.4 million.

Despite the brisk pre-orders, though, Chinese vendors and scalpers are uncertain if the iPhone SE will be a sure bet like previous models.

“The new iPhone SE has no revolutionary update,” one distributor in Henan Province told CNBC. “I don’t think the demand will be as strong as the iPhone 6 and 6S.” He is offering the iPhone SE at a $20 discount to the official price in China.

In the past, scalpers have been able to charge a premium of roughly $300 over the official price for a newly released iPhone, but one Hong Kong smuggler who refused to be named said he expected to charge just $30 above the listed price for the iPhone SE.

«

First time I’ve heard 3.4m pre-orders described as a problem. (Any Android OEM’s CEO would gnaw off her/his arm to get that many pre-orders for a 4in phone.) And the black market angle has become less and less relevant in China over time, now that all the main networks and lots of retailers, sell iPhones.
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The Next 40 » Asymco

Apple has hit 40 years old; Horace Dediu reflects on what successful (as in, long-lived) companies are, or do:

»we must search for other names to call a company that delivers an enabler that may lead to progress. Crude categorization like the reporting of finances leads to self-deception and a loss of opportunity to understand. Firms are often victims of this self-deception because they start believing that customers buy the things they sell. They start to believe that what is on their financial reports is a reflection of the value they create. It’s a simple mistake to make, but a mistake which leads to catastrophe. If its data is mis-categorized, by chasing numbers the company runs away from opportunity, leaving it to competitors otherwise unencumbered with knowledge of numbers.

Assuming Apple avoids mis-categorizing what it does, will it be a “solutions” or “services” or “brand” company? Is it, as I used to say, a “blockbuster manufacturing line”?

Yes, and still that’s not all it could be. Nor is it enough to understand what will come.

My simple proposal is to think of Apple (and actually any company) as a customer creator. It creates and maintains customers. The more it creates, the more it prospers. The more customers it preserves the more it’s likely to persevere. This measure of performance for a company is not easy to obtain. It’s not a line item in any financial report.

«

The point that companies believe customers buy the things they sell is a mistake you see again and again.
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Errata, corrigenda and ai no corrida:

Start up: harassment claims against Google, android dog funerals, self-destructing handset makers? and more


A Dropcam watches the snow fall, pretending to ignore you. Photo by Scott Beale on Flickr.

A selection of 10 links for you. Contains minimal Watch content. I’m charlesarthur on Twitter. Observations and links welcome.

Dropcam’s slow slide into Nest — and therefore Google — begins » PandoDaily

Nathaniel Mott:

Dropcam users are being asked to create Nest accounts — regardless of whether or not they own a Nest product — so they can use “new features and improvements” to their cameras.

The Verge reports that the new accounts will be used to support some of the integrations Nest promised when it acquired Dropcam for around $555 million in cash June 2014. It will also ensure that Dropcam customers have agreed to Nest’s updated terms of service.

Anyone who wasn’t worried before about Google acquiring these companies (it acquired Nest in January 2014; Nest then acquired Dropcam in June) before should be worried now.

But of course, you’ve already got a Dropcam (which looks pretty useful). So setting up an account, well..


Google hit with sexual harassment complaint from ex-employee » Betanews

Mark Wilson on Kelly Ellis’s allegations – which are serious, and go up as far as behaviour by Vic Gundotra – made over the weekend:

Google would much prefer to be seen encouraging women into technology but Ellis – who worked on the Google+ team – dismisses this as nothing more than “PR bullshit”. She also says that she was let down by co-workers who failed to back her up.

Ellis spent a good deal of time on Saturday tweeting a series of snippets about her time at Google where she worked from 2010 to 2014. The tweets started with a very blunt statement: “At Google I was sexually harassed by someone who was later promoted to director”. Dozens of tweets then followed giving more details about what had happened.

Now working as a software engineer at Medium, Ellis says that the harassment was the main reason she left the company back in July. She says “I don’t care if people believe me or not”, but, we have to refer to what she says as allegations. She says that Roderick Chavez, another Google engineer, harassed her:

Google hasn’t responded to the allegations at the time of this being collated.


The privacy and security questions we must ask about the Apple Watch » Fusion

Kashmir Hill:

Apple wants to be your iDoctor. Even if its devices aren’t actually FDA-approved, the apps it makes available that could offer up diagnoses and treatment will be.

Now that our iDevices are going to be collecting even more information from us, what privacy and security concerns do we need to be freaking out about?

“Freaking out about”? Asking about, perhaps. It seems there’s nothing to freak out about.


Imaginary ISIS attack on Louisiana and the twitterbots who loved it » Boing Boing

Cory Doctorow:

On September 11, 2014, [Gilad] Lotan, a data scientist, started researching a massive, coordinated, and failed hoax to create panic over an imaginary ISIS attack on a chemical plant in Centerville, Louisiana. The hoax included Twitter, Facebook and Wikipedia identities (some apparently human piloted, others clearly automated) that had painstakingly established themselves over more than a month. Also included: fake news stories, an imaginary media outlet called “Louisiana News,” and some fascinating hashtag trickery whereby a generic hashtag was built up in Russian Twitter by one set of bots, then, once trending, was handed over to a different set of English-language bots that used it to promote the hoax.

More interesting is the fact that the hoax failed. Lotan shows that Facebook’s Edgerank proved to be resistant to gaming using the process employed by the hoax’s creator(s); that Twitter clusters can be trumped by real news sources; and that Wikipedia’s vigilance was adequate to catching fakesters who create hoax pages.

One feels it’s important to add the proviso: “this time”. There’s more from John Borthwick on Medium. And speaking of Twitter bots…


This is what a graph of 8,000 fake Twitter accounts looks like » Terence Eden’s Blog

Like this:

Eden spent a weekend digging into the nests of fake accounts:

There appears to be several “loops” – that is bots which are in an almost closed network with each other. I see at least half a dozen circles – the rest appear to be following other fake accounts at random.

The centre of those circles appear to be real people. I can’t say why they have lots of fake followers – it’s possible that they – or someone else – has just bought them to make it look like they’re more popular than they really are. There’s no suggestion that they control the fake accounts.

One of the central nodes has 650,000 followers. It’s not possible to know quite how many of those are fake – I’m guessing the majority are.

It seems that there’s a nasty nest of these bots. In the last few weeks I’ve reported a dozen or so for spam – but with literately tens of thousands in the network it’s impossible for any individual to make a meaningful impact.


Avoidable Contact: the watery Big Bang, the 32-step power steering fluid check, disposable faux-ury » The Truth About Cars

Jack Baruth starts with racing cars, then veers into watches…

Hublot and other watchmakers are busy CAD-creating their own “manufacture movements” to replace the generic ETA/Sellita/Valjoux movements found in their products. In this, the Cretaceous period of watch enthusiasm, the ability to engineer and manufacture one’s own mechanical watch movement is essential for “credibility”. Not that the genuine prestige watchmakers all used their own movements anyways, but there’s a certain amount of Cadillac-at-the-Nurburgring idiocy going on: Rolex makes their own movements, and they are a respected brand, so we need to have our own movements as well, even more complicated and feature-packed, and then we will be more respected than Rolex.

There’s just one little problem with that strategy. The proliferation of quick-bake “manufacture” movements is creating an entire generation of hugely expensive, amazingly complicated, completely “bespoke” watches which will be impossible to fix.

…and then he comes out the other side and goes into Porsches, and 993s v Boxsters, but it’s really about durability and inheritability. Very appropriate in light of you-know-what.


Chart: Samsung leads the smartwatch market » Statista

Who are the main players in the smartwatch market? Like the smartphone market, Samsung is going to be Apple’s main competitor. The South Korean technology behemoth sold approximately 1.2 million units in 2014, ahead of second placed Pebble with 700,000. The top three was rounded off by Fitbit who sold 600,000 smartwatches.

Fitbit does a smartwatch? Also, Motorola seems to have been subsumed into Lenovo, so that the Moto 360 looks like it did 500,000 units.

My one problem with these numbers is that they don’t fit with the number of Android Wear devices sold and activated, which we know is 720,000 (give or take a few).


The global handset industry is set for self-destruct » Digits To Dollars

Jay Goldberg isn’t happy:

Let’s say you make a product, and you have a lot of competitors, dozens, hundreds. Prices are falling. More people are piling into the market. Now it is time for you to design a new product. Do you experiment with a radically new form factor? Let a single designer attempt to craft a finely honed product that stands out for its quality? Or do you come out with a product that is just a modest upgrade of last year’s product, with no distinguishing design or features?

Well, when you put it like that…..

Really, I am kinda dumbfounded. That handset OEMs seem to be on a path of self-destruction. I visited every major OEM’s booth and dozens of smaller vendors. I am sure I missed one or two interesting devices with some novel feature, but at some point, I can only stare at identical black, plastic slabs for so long. There is nothing new or differentiated out there, and this cannot last.

I have to admit, at one point, I almost lost my temper. A couple times actually. The industry seems to be in some very complicated form of denial. And there seem to be a couple common threads to their excuses.

His idea of a QWERTY Android phone to sweep up the disenfranchised BlackBerry users is one that keeps being put forward, but nobody is brave enough to do. Point is it would have to be enormously tall, and what happens when you turn the phone sideways? Should it be a slide-phone like the G1?


If an algorithm wrote this, how would you even know? » NYTimes.com

Shelley Podolny (well, perhaps):

The multitude of digital avenues now available to us demand content with an appetite that human effort can no longer satisfy. This demand, paired with ever more sophisticated technology, is spawning an industry of “automated narrative generation.”

Companies in this business aim to relieve humans from the burden of the writing process by using algorithms and natural language generators to create written content. Feed their platforms some data — financial earnings statistics, let’s say — and poof! In seconds, out comes a narrative that tells whatever story needs to be told.

These robo-writers don’t just regurgitate data, either; they create human-sounding stories in whatever voice — from staid to sassy — befits the intended audience. Or different audiences. They’re that smart. And when you read the output, you’d never guess the writer doesn’t have a heartbeat.

Consider the opening sentences of these two sports pieces:

“Things looked bleak for the Angels when they trailed by two runs in the ninth inning, but Los Angeles recovered thanks to a key single from Vladimir Guerrero to pull out a 7-6 victory over the Boston Red Sox at Fenway Park on Sunday.”

“The University of Michigan baseball team used a four-run fifth inning to salvage the final game in its three-game weekend series with Iowa, winning 7-5 on Saturday afternoon (April 24) at the Wilpon Baseball Complex, home of historic Ray Fisher Stadium.”

If you can’t tell which was written by a human, you’re not alone.

Cue observation about how many US news reports have read like they’re written by machines for years anyway.


Japan’s robot dogs get funerals as Sony looks away » Newsweek

Lauren Walker:

“I can’t imagine how quiet our living room would have been if Ai-chan wasn’t here,” Sumie Maekawa, a longtime Aibo owner, told The Wall Street Journal, using an honorific suffix applied to girls’ names.

Tatsuo Matsui, who owns two digital dogs with his wife, added, “I can’t risk my precious dogs because they are important members of our family.”

Despite the loyal fanbase, Sony decided to discontinue the bot in 2006, after selling around 150,000 units.

“Our core businesses are electronics, games and entertainment, but the focus is going to be on profitability and strategic growth,” a Sony spokeswoman said at the time. “In light of that, we’ve decided to cancel the Aibo line.”

For years following the announcement, Sony would repair Aibos that experienced technical difficulties. But in July 2014, those repairs stopped and owners were left to look elsewhere for help.

Do androids dream of electric dog funerals?