Start up: SWIFT’s hacking problem, Apple swoons, the emoji war, the medical firm shut by filesharing, and more


The price tag isn’t necessarily about what it’s worth to the maker. It might be what it’s worth to you. Photo by DaMongMan 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. (Check against delivery. Might not be decimal-based.) I’m charlesarthur on Twitter. Observations and links welcome.

Exclusive: SWIFT warns customers of multiple cyber fraud cases » Reuters

Jim Finkle:

»SWIFT, the global financial network that banks use to transfer billions of dollars every day, warned its customers on Monday that it was aware of “a number of recent cyber incidents” where attackers had sent fraudulent messages over its system.

The disclosure came as law enforcement authorities in Bangladesh and elsewhere investigated the February cyber theft of $81m from the Bangladesh central bank account at the New York Federal Reserve Bank. SWIFT has acknowledged that the scheme involved altering SWIFT software on Bangladesh Bank’s computers to hide evidence of fraudulent transfers.

Monday’s statement from SWIFT marked the first acknowledgement that the Bangladesh Bank attack was not an isolated incident but one of several recent criminal schemes that aimed to take advantage of the global messaging platform used by some 11,000 financial institutions.

«

Let’s see – since the Bangladesh hack we’ve gone through “not affected” and “isolated incident” and now “multiple incidents”. I believe the next stage is “it emerged that hackers have known for years…”
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Apple ends 13 years of continuous quarterly growth » NBC News

Everett Rosenfeld:

»Shares in the company fell more than 6 percent in after-hours trading.

Speaking with CNBC, Apple CEO Tim Cook said the company is in “the early innings of the iPhone” and that they “feel good” about their business in China.

In fact, Apple beat Wall Street’s estimates on iPhone shipments, reporting 51.2m for the quarter. Analysts had expected 50.3m, according to StreetAccount.

Still, that iPhone unit count was a 16% decline from the 61.17m shipped during the same period last year.

Looking ahead to the fiscal third quarter, Apple said it expects revenue between $41bn and $43bn — Wall Street had expected $47.42bn on average, according to StreetAccount.

«

That’s a long way down. Notable that Google, Microsoft, Intel and others have also had poor earnings. So one asks…
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The End of Hardware? » LinkedIn

Bob O’Donnell:

»Whether it’s PCs, tablets, smart watches or now, even smartphones, the outlook for most major hardware device categories is not looking good, particularly here in the US.

The issue is that both consumers and businesses have already bought a lot of these devices. Plus, they’re hanging on to their purchases longer than they used to, and longer than many people originally thought they would.

Many companies, including both Intel and Qualcomm, have been forced to make some painful employee reductions as a result of these challenges, and there are likely more from other vendors still to come.

So, does this signal the end of hardware as we know it?

On one hand, yes, we are arguably at the peak of these key hardware categories, particularly when you add them all together. As a result, we are likely to see modest declines in unit shipments from this point forward. After a 30+-year run of growth, that’s tough news to take.

But there is hope in hardware-land. It just requires thinking about the market in a different way.

«

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‘It sounded like my child’: the ‘virtual kidnappers’ scamming Americans » The Guardian

Sam Levin:

»Tracy Holczer was driving with a friend to their writers’ group in a suburb of Los Angeles when she got a terrifying call on her cellphone from a number she didn’t recognize. A hysterical girl was screaming on the other end of the line.

“Mommy, please help me! Someone grabbed me, and I’m in a van. I don’t know where I am!”

It was 4.45pm on 22 March, and it was immediately clear to Holczer that she was experiencing the most unimaginable horror any parent could comprehend: her 14-year-old daughter, Maddy, whom she had left at home 30 minutes earlier, had been kidnapped.

A man quickly got on the line and demanded that the mother withdraw money from her bank and transfer it to his account. He told her that if she or her friend contacted anyone, he would know, and if she refused to comply, he would kill Maddy – whom Holczer could periodically hear screaming in the background. “He said they are happy to send body parts,” the 48-year-old mother recalled.

«

Terrifies people enough that they don’t think to ask to speak to the child, or get an identifying detail, or anything else that would prove it’s anything but a scam. You can understand it, though. And how do you stop this scam?
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Inside “Emojigeddon”: the fight over the future of the Unicode consortium » BuzzFeed News

Charlie Warzel:

»There’s trouble afoot inside the Emoji Council of Elders, or, at the very least, signs of a low-simmering schism that’s being referred to by some of its participants — perhaps with less humor than one might expect — as “Emojigeddon.”

Emails seen by BuzzFeed News reveal an emerging tension at the Unicode Consortium — the 24-year-old organization that was established to develop standards for translating alphabets into code that can be read across all computers and operating systems.

The series of frustrated messages show a deepening rift between those who adhere to the organization’s original mission to code old and obscure and minority languages and those who are investing time and resources toward Unicode’s newer and most popular character sets: emojis, a quirky periodic table of ideograms and smiley faces that cover everything from bemused laughter to swirling, smiling piles of poop. The correspondence offers a peek behind the scenes of the peculiar and little-known organization that’s unexpectedly been tasked with building what some see as the first digital universal language.

«

🤔
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The first rule of pricing is: you do not talk about pricing » Medium

Tom Whitwell, in a terrific essay that has been doing the rounds, but should be bookmarked by everyone who ever has to set a price:

»It’s tempting to talk to customers about price.

Your customers — real or potential — will certainly have views about prices that they are keen to share.
Ignore them.

“It is not your customer’s job to set pricing. An optimal price is one that is accepted but not without some initial resistance” as Ash Mauyra explains in this great piece.

It is almost impossible to predict how a customer will react to a particular price by asking them. That’s because they don’t know how they will react.

They have no idea.

“Are you in the market for tea lights on this trip to IKEA?” you might ask. “No” They might say. Or “Yes”. Neither is a useful signal, because they don’t have a clue.

There’s one easy way to find out what customers think about prices. By selling them things.

«

Whitwell was one of the teams at The Times digital edition, which raised its price in 2010 from zero to £2. Calamity didn’t follow. Why not?
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A revolutionary new way to access all your files » Dropbox Business Blog

»With Project Infinite, we’re addressing a major issue our users have asked us to solve. The amount of information being created and shared has exploded, but most people still work on devices with limited storage capacity. While teams can store terabyte upon terabyte in the cloud, most individuals’ laptops can only store a small fraction of that. Getting secure access to all the team’s data usually means jumping over to a web browser, a clunky user experience at best.

Project Infinite will enable users to seamlessly and securely access all their Dropbox files from the desktop, regardless of how much space they have available on their hard drives. Everything in the company’s Dropbox that you’re given access to, whether it’s stored locally or in the cloud, will show up in Dropbox on your desktop. If it’s synced locally, you’ll see the familiar green checkmark, while everything else will have a new cloud icon.

«

I suspect this is going to be a business- (or paid-)-only thing. It’s a clever upsell. Here’s the user interface problem you have to figure out, though: if I download a file but now want to free up that space on the hard drive, when I hit “delete” should it be deleted from the cloud? I expect a three-option dialog (Cancel, only from hard drive, from cloud too). But it gets messy.
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The iPhone 6 Blip » Beyond Devices

Jan Dawson argues that iPhone sales growth was on a slowing long-term trend which was artificially interrupted by the larger-screened iPhone 6, for a year:

»The iPhone 6 blip is over, but if iPhone sales land roughly where the analysts expect them to, they’ll be right back on track with where they were headed before the iPhone 6 launched. That’s a big “if” – sales could come in above or below that number, which would suggest either that underlying growth had slowed more dramatically in the past, or that Apple has successfully pushed to a slightly higher long-term growth rate off the back of the iPhone 6 and 6S.

The other big question is what happens in the next few quarters, and whether Apple is able to stay on or above that long-term trend line. Remember that the trend line calls for a 1-1.5% reduction in year on year growth per quarter – on that basis, growth would slow to 6%, 5%, and 4% over the remaining quarters of 2016 with 1% shrinkage, or drop as low as a 1% decline by the end of the year. This is obviously far too precise for a real-world projection, but it gives you some sense of that trajectory if it does continue. It’ll be very interesting to see Apple’s guidance for the June quarter – on the basis of the trajectory, Apple would sell between 39 and 41 million iPhones next quarter. But of course, it’s just launched the iPhone SE, which could change things. Anything below 40m iPhones (or $40bn in revenue guidance) is a sign that Apple is dropping below its long-term trajectory, and would be bad news. Anything above that is cause for optimism, at least in the short term.

«

As noted above, Apple is guiding $41-43bn.
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Your media business will not be saved » Medium

Joshua Topolsky (a key mover behind the original Engadget, and then The Verge, who then went to Bloomberg, where things didn’t go well; he’s currently freelance):

»The truth is that the best and most important things the media (let’s say specifically the news media) has ever made were not made to reach the most people — they were made to reach the right people. Because human beings exist, and we are not content consumption machines. What will save the media industry — or at least the part worth saving — is when we start making Real Things for people again, instead of programming for algorithms or New Things.

So what will matter in the next age of media?

Compelling voices and stories, real and raw talent, new ideas that actually serve or delight an audience, brands that have meaning and ballast; these are things that matter in the next age of media. Thinking of your platform as an actual platform, not a delivery method.

«

This sounds great; there’s also an excoriation earlier of the business model of most publishing sites, and an overdone – to my view – criticism of news organisations for not “getting” digital; the ones I’ve been at have got it all too well. But this sound like a recipe for targeting premium readers/viewers, which already happens (FT, WSJ, New York Times). And I don’t quite see what “thinking of your platform as an actual platform” means in terms of “compelling voices and stories”. Clearly Topolsky does, but he isn’t quite willing to share it yet.
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A leak wounded this company. Fighting the Feds finished it off » Bloomberg BusinessWeek

Dune Lawrence:

»That Tuesday, LabMD’s general manager came in to tell Daugherty about a call he’d just fielded from a man named Robert Boback. Boback claimed to have gotten hold of a file full of LabMD patient information. This was scary for a medical business that had to comply with federal rules on privacy, enshrined in the Health Insurance Portability and Accountability Act. I need proof, Daugherty told his deputy. Get it in writing.

Boback e-mailed the document. It was a LabMD billing report containing data, including Social Security numbers, on more than 9,000 patients. Boback quickly got to the sales pitch: His company, Tiversa, offered an investigative service that could identify the source and severity of the breach that had exposed this data and stop any further spread of sensitive information.

LabMD’s four-person IT team found the problem almost immediately: The manager of the billing department had been using LimeWire file-sharing software to download music. Without knowing it, she’d left her documents folder, which contained the insurance report now in Tiversa’s possession, open for sharing with other users of the peer-to-peer network.

«

You think (because of the headline and that last sentence) that you know where this story goes. You don’t. Read it; it’s shocking and disquieting.
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Errata, corrigenda and ai no corrida: none notified.

Start up: how to properly break the internet, the premium phone boomlet, emoji variation, and more

Crumbling bridge

Upkeep of infrastructure probably matters more than inventing new things once you reach a certain level of complexity. Photo by BluePrince Architecture on Flickr.

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

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

Internet mapping turned a remote farm into a digital hell » Fusion

Terrific work by Kashmir Hill:

»As any geography nerd knows, the precise center of the United States is in northern Kansas, near the Nebraska border. Technically, the latitudinal and longitudinal coordinates of the center spot are 39°50′N 98°35′W. In digital maps, that number is an ugly one: 39.8333333,-98.585522. So back in 2002, when [IP mapping company] MaxMind was first choosing the default point on its digital map for the center of the U.S., it decided to clean up the measurements and go with a simpler, nearby latitude and longitude: 38°N 97°W or 38.0000,-97.0000.

As a result, for the last 14 years, every time MaxMind’s database has been queried about the location of an IP address in the United States it can’t identify, it has spit out the default location of a spot two hours away from the geographic center of the country. This happens a lot: 5,000 companies rely on MaxMind’s IP mapping information, and in all, there are now over 600 million IP addresses associated with that default coordinate. If any of those IP addresses are used by a scammer, or a computer thief, or a suicidal person contacting a help line, MaxMind’s database places them at the same spot: 38.0000,-97.0000.

Which happens to be in the front yard of Joyce Taylor’s house.

“The first call I got was [in 2011] from Connecticut,” Taylor told me by phone this week. “It was a man who was furious because his business internet was overwhelmed with emails. His customers couldn’t use their email. He said it was the fault of the address at the farm. That’s when I became aware that something was going on.”

«

Something indeed was going on. MaxMind says it’s the fault of the users of its database.
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How one programmer broke the internet by deleting a tiny piece of code » Quartz

Keith Collins:

»A man in Oakland, California, disrupted web development around the world last week by deleting 11 lines of code.

The story of how 28-year-old Azer Koçulu briefly broke the internet shows how writing software for the web has become dependent on a patchwork of code that itself relies on the benevolence of fellow programmers. When that system breaks down, as it did last week, the consequences can be vast and unpredictable.

“I think I have the right of deleting all my stuff,” Koçulu wrote on March 20 in an email that was later made public.

And then he did it.

Koçulu had been publishing code he wrote to npm, a popular service that’s widely used to find and install open-source software written in JavaScript. It has become an essential tool in web development, invoked billions of times a month, thanks to npm’s ease of use and its enormous library of free code packages contributed by the open-source community.

«

Increasingly, very large structures are built on very small foundations whose solidity can’t be taken for granted. Talking of which…
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Innovation is overvalued. Maintenance often matters more » Aeon Essays

Lee Vinsel and Andrew Russell, who are professors at the Stevens Institute of Technology in New Jersey:

»First, it is crucial to understand that technology is not innovation. Innovation is only a small piece of what happens with technology. This preoccupation with novelty is unfortunate because it fails to account for technologies in widespread use, and it obscures how many of the things around us are quite old. In his book, Shock of the Old (2007), the historian David Edgerton examines technology-in-use. He finds that common objects, like the electric fan and many parts of the automobile, have been virtually unchanged for a century or more. When we take this broader perspective, we can tell different stories with drastically different geographical, chronological, and sociological emphases. The stalest innovation stories focus on well-to-do white guys sitting in garages in a small region of California, but human beings in the Global South live with technologies too. Which ones? Where do they come from? How are they produced, used, repaired? Yes, novel objects preoccupy the privileged, and can generate huge profits. But the most remarkable tales of cunning, effort, and care that people direct toward technologies exist far beyond the same old anecdotes about invention and innovation.

«

Terrific and thought-provoking essay: in the light of smart home systems being turned off within 18 months of being released, what price maintenance?
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Premium smartphones are booming » Bloomberg Gadfly

Tim Culpan:

»Exhibit A in the case for the high end is Huawei. A strong push for models such as the P8 meant that the average price of the Chinese company’s phones climbed 17% last year, according to IDC. Unit shipments jumped 45%, with the premium segment accounting for a significantly larger proportion of the total.

Apple’s average selling price rose more than 7% in calendar 2015, according to IDC data, with its shipment volume increasing 20%. The other major player to see gains from selling more-expensive phones was ZTE, with a 5.8% markup in price and a 20% jump in volumes. According to Counterpoint Research, the highest tier widened its share of total volume. So too did the bottom end, while the center got squeezed.

Given the gain for the cheapest models, it would be wrong to write off price cuts as a marketing strategy. Still, the price-demand dynamics for smartphones suggest that higher volumes driven by discounts may not translate to increased revenue (and will certainly squeeze profit per device). Whether you’re a Beijing-based startup or a Cupertino-based behemoth, the end-goal ought to be boosting sales and not market share.

The experience last year of Apple, Huawei and ZTE suggests that smartphones may in fact be a Giffen good – a product for which demand increases as prices rise.

«

Culpan also says that Samsung has seen a tripled demand for the S7 over the figures for the S6 last year, but I think that’s an error – Counterpoint says it’s up about 30%. What also isn’t revealed is what Huawei’s and ZTE’s ASPs were in 2014 or 2015. They might be up, but are they premium? Or is that effect principally from Apple’s bigger, pricier sales?

It’s certainly counterintuitive if premium really is booming. The graphic accompanying the article suggests it is, but it could just be Apple doing better while the rest sink.

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New and improved “block user” feature in your inbox. : announcements » Reddit

»Believe it or not, we’ve actually had a “block user” feature in a basic form for quite a while, though over time its utility focused to apply to only private messages. We’ve recently updated its behavior to apply more broadly: you can now block users that reply to you in comment replies as well. Simply click the “Block User” button while viewing the reply in your inbox. From that point on, the profile of the blocked user, along with all their comments, posts, and messages, will then be completely removed from your view. You will no longer be alerted if they message you further. As before, the block is completely silent to the blocked user. Blocks can be viewed or removed on your preferences page here.

«

It’s a start (and also reinforces my hypothesis that all commenting systems evolve towards the functionality that Usenet already offered in 1996). But it doesn’t stop Reddit being something of a cesspit in other regards, as this New York Times article points out. (Though Usenet was like that too.)
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Investigating the potential for miscommunication using emoji | GroupLens

»To your smartphone, an emoji is just like any other character (e.g., lower-case ‘a’, upper-case ‘B’) and needs to be rendered with a font. Since each smartphone platform (e.g., Apple, Google) has its own emoji font, the same emoji character can look quite different on different smartphone platforms. This is why when a Google Nexus owner sends [smiley emoji]  to a friend with an iPhone, the iPhone owner will actually see [slightly different smiley emoji] . This problem isn’t just limited to iPhones and Nexuses; check out all the different renderings of the single emoji character we’ve been discussing:

«

Read the full paper. May include emoji. (I always thought the Apple version of this one was a sort of “forced rictus grin of embarrassment”, so apologies to anyone who saw me use it and thought I was trying to transmit hilarity.)

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How can we trust Google when it lets ads call the shots? » The Guardian

Kenny Jacobs, who is chief marketing officer of Ryanair:

»A friend of mine recently went on a first date and wanted to make a good impression. Having heard about a very reliable French place in central London that might be a romantic venue, he Googled it. At the top of the results page he found the restaurant’s website, clicked through to see pictures of happy looking couples, browsed the sample menu and used a booking form to reserve a table for two.

Date night came and when the taxi arrived at the address, the cabbie asked him which restaurant he was looking for: the one that had been there for years, or the new place across the road? Being sure he’d booked the original, the pair went into the restaurant, only to be told they had no reservation, and that they should have booked by phone.

«

Jacobs (and Ryanair) still hate eDreams, which buys AdWords ads against Ryanair searches and then leads those who click through to a site that looks suspiciously like Ryanair’s – except that it charges extra.

Should Ryanair sue eDreams? It already is doing. The problem is that by putting AdWords ads above organic search results, rather than to the side, Google encourages users to click the adverts. That’s in its own interests, but not all users can perceive the difference, which is then to the users’ disadvantage. Shouldn’t the user advantage win in that case? Online ads aren’t necessarily so easy to spot as on TV (where they’re not necessarily easy to spot either).
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This dude’s fitness tracker may have just saved his life » Gizmodo

George Dvorsky:

»A 42-year-old man from New Jersey recently showed up in an emergency ward following a seizure. After looking at the data collected by his Fitbit Charge HR, the doctors decided to reset his heart rate with an electrical cardioversion. It’s the first time in history that a fitness tracker was used in this way.

«

Won’t be the last, though. Full text in the Annals of Emergency Medicine.
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RUN and RUN / lyrical school 【MV for Smartphone】 on Vimeo

RUN and RUN / lyrical school 【MV for Smartphone】 from RUNandRUN_lyrisch on Vimeo.

This music video has been going quietly viral in the west; it shows what an imaginative director can do by thinking about how a generation encounters music videos now – through the phone, not the TV. (You might want to watch it with the sound turned down low.)
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Birds measure magnetic fields using long-lived quantum coherence » physicsworld.com

Michael Allen:

»Long-lived spin coherence in proteins found in the eyes of migratory birds could explain how the creatures are able to navigate along the Earth’s magnetic field with extraordinary precision. This is the finding of researchers in the UK and Germany, who have created a new realistic model of cryptochrome proteins that is based on advanced simulations of nuclear and electron spins. The team also provides an explanation for how the avian magnetic compass has been optimized by evolution.

«

“Spin coherence” is the tight quantum pairing of electron spins. That birds have evolved the ability to lengthen it, and then harness it to navigate makes evolution all the more amazing. If you read it in a science fiction plotline you’d think they were overreaching a bit.
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Errata, corrigenda and ai no corrida: none specified.

Start up: the smartphone slowdown, AirBnB ‘racism’, malware Bibles, Google lobbies and more


No longer big in Japan. Photo by Chris Blakeley on Flickr.

I know, you could sign up to receive each day’s Start Up post by email. But we’ll all be dead in 200 years, so why bother?

A selection of 9 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Revealed: how Google enlisted members of US Congress it bankrolled to fight $6bn EU antitrust case » The Guardian

Simon Marks (Brussels correspondent) and Harry Davies (special investigations correspondent):

• Google’s co-founder and CEO Larry Page met the then European commission chief privately in California in spring 2014 and raised the antitrust case despite being warned by EU officials that it would be inappropriate to do so.

• Officials and lawmakers in Brussels say they have witnessed a significant expansion of Google lobbying efforts over the past 18 months as the company faces increased scrutiny of its business activities in Europe.

• Google has employed several former EU officials as in-house lobbyists, and has funded European thinktanks and university research favourable to its position as part of its broader campaign.

Capitol Hill’s aggressive intervention in Brussels came as the European parliament prepared to vote through a resolution in November 2014 that called on EU policymakers to consider breaking up Google’s online business into separate companies.

Republican and Democratic senators and congressmen, many of whom have received significant campaign donations from Google totalling hundreds of thousands of dollars, leaned on parliament in a series of similar – and in some cases identical – letters sent to key MEPs.

Lobbying is entirely fair play; it’s only stupid not to do it. Microsoft is certainly behind lobbying efforts against Google in the US and Europe. It’s the extent, and the subtlety, that’s so striking here.
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Apple names Jeff Williams chief operating officer » Apple

Apple today announced that Jeff Williams has been named chief operating officer and Johny Srouji is joining Apple’s executive team as senior vice president for Hardware Technologies. Phil Schiller, senior vice president of Worldwide Marketing, will expand his role to include leadership of the revolutionary App Store across all Apple platforms. Apple also announced that Tor Myhren will join Apple in the first calendar quarter of 2016 as vice president of Marketing Communications, reporting to CEO Tim Cook.

Interesting on lots of levels:
– Jeff Williams has been COO-in-waiting for some time now; this simply cements it.
– Srouji has been on the chip side; elevating him like this shows the importance of chip design to Apple’s future
– putting Schiller in charge of the App Store looks like the end of a mini-power struggle inside Apple. As Rene Ritchie of iMore pointed out on the Blerg podcast (you listened, right?) responsibility for the App Store was effectively split among three people – Schiller, Eddy Cue and Craig Federighi.

Ritchie has a writeup on this change – definitely worth reading.
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Cyber sacrilege at Christmas: Android malware hiding in Bible (and Quran) apps » Forbes

Thomas Fox-Brewster:

Security company Proofpoint isn’t revealing which exact Android apps are doing bad deeds, as it is going through the process of disclosure with the affected developers and vendors. It is instead revealing data on the number of malware or aggressive adware targeting the Google operating system. Proofpoint analyzed over 5,600 unique Bible apps (4,154 for Android and 1,500 for Apple’s iOS), including 208 that contained known malicious code and 140 were classified as “high risk” based on their behavior, all for the Android platform. Apple is evidently doing a good job of keeping out dangerous Bibles.

Kevin Epstein, VP of threat operations at Proofpoint, said those apps with known malicious behavior let attackers steal information from mobile devices, exploit zero-day vulnerabilities, possibly jailbreak or “root” a device, pilfer login credentials and communicate with IP addresses previously linked with rogue activity.

How is it that Apple is keeping out the dangerous ones, though? You’d assume it would be targeted just the same.
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Discrimation against Airbnb guests » Ben Edelman

In an article posted today, Michael Luca, Dan Svirsky, and I present results of a field experiment on Airbnb. Using guest accounts that are identical save for names indicating varying races, we submitted requests to more than 6,000 hosts. Requests from guests with distinctively African-American names are roughly 16% less likely to be accepted than identical guests with distinctively White names. The difference persists whether the host is African American or White, male or female. The difference also persists whether the host shares the property with the guest or not, and whether the property is cheap or expensive.

Discrimination is costly for hosts who indulge in it. Hosts who reject African-American guests are able to find a replacement guest only 35% of the time.

On the whole, our analysis suggests a need for caution. While information can facilitate transactions, it also facilitates discrimination. Airbnb’s site carefully shrouds information Airbnb wants to conceal, such as hosts’ email addresses and phones numbers, so guests can’t contact hosts directly and circumvent Airbnb’s fees. But when it comes to information that facilitates discrimination, including name and photo, Airbnb offers no such precaution.

You can read the draft paper. I’ve seen no coverage of it at all. Update: I overlooked The Verge’s coverage of the paper. Apologies. (Recall the similar paper studying discrimination by buyers on eBay from the other day too.)
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A botnet has been stealing billions through digital ads aimed at fake audiences » Social Media Today

Aaron Miles:

According to a recent report from ad-fraud prevention firm Pixalate, a sophisticated botnet has been leeching money from digital advertisers by serving up real ads to faked, highly-prized audiences. The botnet, nicknamed Xindi after some Star Trek bad guys, has, by Pixalate’s calculations, rung up something like 78 billion ad impressions so far. According to George Slefo of Adweek, Xindi “could cost advertisers nearly $3 billion by the end of 2016.”

The ingenious thing about the Xindi botnet is who it targeted. The infection was aimed at Fortune 500 companies, university computer networks, and other groups whose users are usually very sought-after by advertisers. Because the advertisers thought that they were reaching such a valuable audience, they were willing to pay much more, $200 per thousand impressions for some, which compounded the cost of the fraud and made things much more lucrative for the fraudsters.

The botnet also uses some sophisticated techniques to trick the protocols that normally check for ad fraud (see image below) and cover its tracks.

Billions of dollars. The scale is astonishing; and so is the ingenuity in how it evaded detection.
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Emojis are no longer cool in Japan » Slate

Matt Alt:

The very first emojis appeared on a handset sold by the company J-Phone (now Softbank) in 1997, but high prices kept it out of the hands of average citizens. The direct ancestors of the emoji we know and use today debuted in Japan in 1999. And now? “The emoji boom is over here in Japan,” says Shigetaka Kurita, the man widely credited with creating the adorable little runes. “They’re still around, they’re still pervasive, but they aren’t a fad anymore,” he says in his Tokyo office. He ventures that when Obama mentioned emojis on the White House lawn, “I suspect most Japanese people’s response was, ‘wow, emoji are still popular over there!?’ ”

Extra irony: lack of emoji stalled interest in the iPhone in Japan too. Now it’s one of its best markets.
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Elon Musk’s billion-dollar AI plan is about far more than saving the world » WIRED

Cade Metz:

We can’t help but think that Google open sourced its AI engine, TensorFlow, because it knew OpenAI was on the way—and that Facebook shared its Big Sur server design as an answer to both Google and OpenAI. Facebook says this was not the case. Google didn’t immediately respond to a request for comment. And Altman declines to speculate. But he does say that Google knew OpenAI was coming. How could it not? The project nabbed Ilya Sutskever, one of its top AI researchers.

That doesn’t diminish the value of Google’s open source project. Whatever the company’s motives, the code is available to everyone to use as they see fit. But it’s worth remembering that, in today’s world, giving away tech is about more than magnanimity. The deep learning community is relatively small, and all of these companies are vying for the talent that can help them take advantage of this extremely powerful technology. They want to share, but they also want to win. They may release some of their secret sauce, but not all. Open source will accelerate the progress of AI, but as this happens, it’s important that no one company or technology becomes too powerful. That’s why OpenAI is such a meaningful idea.

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The smartphone lifetime challenge » Bob O’Donnell

In a recent survey of over 3,000 consumers across five countries (US, UK, Germany, Brazil and China) conducted by TECHnalysis Research, consumers said they expected to replace their smartphones every 1.8 years. Now, on the surface, that seems fine, and probably in line with what people have done in the past. The problem is, in response to the same question about notebook PCs, people said they expected to replace those devices every 2.5 years.

In reality, however, notebook PC replacements occur closer to 5 years. In other words, people clearly aren’t good at estimating how long they plan to keep a device. To be fair, I don’t think smartphone replacement times will be double the 1.8-year lifecycle that they responded with, but I am certain they will be longer. And that is the crux of the challenge for the smartphone market.

As we saw first with PCs and then with tablets, once a market reaches the saturation point, then future growth becomes nearly completely dependent on refresh rate and lifecycle—how quickly (or not) you choose to upgrade what you have.

Things are going to get tight in the next few years in mature markets.
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Xiaomi plays down sales target » OmniFeed

Gillian Wong ad Eva Duo:

“This target [of 80m shipped in 2015, given earlier this year is not the No. 1 priority for us,” Mr. Lei said on the sidelines of the World Internet Conference on Wednesday in the Chinese city of Wuzhen, when asked if Xiaomi could reach its smartphone sales target. “What we care about the most is the rate of customer satisfaction.”

Mr. Lei played down the sales target, saying he was “constantly pushed by everyone” to give the figure earlier this year.

He said in a statement in July that Xiaomi sold 34.7m smartphones in the first half of the year. Xiaomi sold 61.1m smartphones in 2014 and 18.7m in 2013.

The “80m” number is actually a reduction from the 100m or so that Xiaomi was hoping for back in March.
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Errata, corrigenda and ai no corrida: