Tag Archives: huawei

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

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

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

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

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

Numbers for all

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

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

Q2 2016: the smartphone scorecard

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

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

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

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

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

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

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

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

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

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

Rampant deflation

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

Smartphone growth year-on-year.png

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

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

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

Smartphone OEMs: growth against the overall market

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

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

Seven quarters of hurt

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

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

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

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

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

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

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

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

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

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

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

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

In search of the lost profits

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

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

Late exit

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

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

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

Start up: EC v Android in detail, how neural networks spot nudes, Xbox 360’s black ring of death, and more

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But now you can get a smart one with a remote app which doesn’t work! Photo by 1950sUnlimited on Flickr

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

A selection of 12 links for you. Jumping beans for moving goalposts. I’m charlesarthur on Twitter. Observations and links welcome.

Spring cleaning at CNET’s Smart Home starts with a new smart washer and dryer » CNET

Megan Wollerton:

»Here’s how it’s supposed to go:

Select “Add Appliance” in the app and follow the seemingly straightforward step-by-step tutorial. This includes selecting the type of appliance you want to connect – either a washer, dryer, refrigerator or dishwasher – then the app lists the compatible models. Next, you choose the model number that corresponds to your unit, enter the SAID pin (this number is listed in small font on a sticker when you open the washer and dryer’s lid), connect to Wi-Fi, enter your home address and finally, hit the “finish” button.

Unfortunately, I experienced a couple of hiccups during what should have been a 10-minute process. The first time I tried to add the washing machine, the app crashed and would not let me log in for another 2 hours, saying, “Problem Signing In: Please try again Later.”

Once I was able to log in again, I ran into another road block when I hit the “finish” button — the very last step before the machine is connected and you can start using the app. This time the app said, “Registration Error: We couldn’t register the appliance. Please try again later.”

«

Ooh, I love the future. Love it. (Guess they had to get a woman to review it because none of the male writers would know what a washing machine was.)
link to this extract

 

Commission sends Statement of Objections to Google on Android » European Commission

Obkects over licensing of proprietary apps, “exclusivity” and “anti-fragmentation”, here:

»if a manufacturer wishes to pre-install Google proprietary apps, including Google Play Store and Google Search, on any of its devices, Google requires it to enter into an “Anti-Fragmentation Agreement” that commits it not to sell devices running on Android forks.

Google’s conduct has had a direct impact on consumers, as it has denied them access to innovative smart mobile devices based on alternative, potentially superior, versions of the Android operating system. For example, the Commission has found evidence that Google’s conduct prevented manufacturers from selling smart mobile devices based on a competing Android fork which had the potential of becoming a credible alternative to the Google Android operating system. In doing so, Google has also closed off an important way for its competitors to introduce apps and services, in particular general search services, which could be pre-installed on Android forks.

«

That “prevented from selling” is stated as fact; either it’s Amazon’s Fire Phone (Android OEMs couldn’t make the Fire Phone without breaking the Open Handset Alliance agreement) or something involving Cyanogen and a rival app store.
link to this extract

 

Android’s model of open innovation » Google Europe Blog

Kent Walker, Google general counsel:

»Android has emerged as an engine for mobile software and hardware innovation.  It has empowered hundreds of manufacturers to build great phones, tablets, and other devices. And it has let developers of all sizes easily reach huge audiences.  The result?  Users enjoy extraordinary choices of apps and devices at ever-lower prices.

The European Commission has been investigating our approach, and today issued a Statement of Objections, raising questions about its impact on competition. We take these concerns seriously, but we also believe that our business model keeps manufacturers’ costs low and their flexibility high, while giving consumers unprecedented control of their mobile devices.

«

Sure, but that isn’t what the EC is worked up about.
link to this extract

 

The EU’s Android mistake » Beyond Devices

Jan Dawson:

»If the Commission’s main focus is on OEMs rather than consumers, it’s worth evaluating that a little. The reality is that OEMs clearly want to license the GMS [Google Mobile Services] version of Android, because that’s the version consumers want to buy. As Amazon has demonstrated, versions of Android without Google apps have some appeal, but far less than those versions that enable Google search, Gmail, Google Maps, and so on. Vestager’s statement alludes to a desire by at least some OEMs to use an alternative version of Android based on AOSP (presumably Cyanogen), but doesn’t go into specifics. Are there really many OEMs who would like to use both forms of Android in significant numbers, or is their complaining to the Commission just a way to push back on some of the other aspects of Android licensing they don’t like?

It’s certainly the case that OEMs and Android have a somewhat contentious relationship and Google has exerted more power in those relationships over the last recent years, but the main reason for the change in leverage is that Android OEMs have been so unsuccessful in differentiating their devices and hence making money from Android. Inviting the Commission to take action may be a roundabout way to change the balance of power in that relationship, but it’s not the solution to OEMs’ real problems.

«

These are all fair points. Though there’s a certain circularity to the argument of “GMS is what people want to buy, so that’s what is sold”. Dawson does note the above point about the “prevented” development. Was it Amazon? Cyanogen?
link to this extract

 

September 2012: Why Google’s clash with Acer and Alibaba strains China’s Android market » The Guardian

By me, back in September 2012:

»The search giant lobbied Acer last week to halt its scheduled press showing of a new smartphone aimed at the Chinese market, pointing out that membership of the Open Handset Alliance – the group of companies forming the device, carrier, semiconductor, software and “commercialisation” sides of the Android ecosystem – forbids Acer from making devices that offer forked, or incompatible, versions of Android.

Acer cancelled the launch abruptly, leaving Alibaba fuming publicly at Google’s actions. John Spelich, Alibaba’s international spokesman, told CNet that “Aliyun is different” from Android – dismissing remarks aimed at him by Andy Rubin, head of Google’s mobile efforts including Android, saying to Spelich that “Aliyun uses the Android runtime, framework and tools. And your app store contains Android apps (including pirated Google apps).”

The upshot has been that Acer has withdrawn from the partnership with Alibaba, at least for now. But Digitimes, the Taiwan-based news site for the IT supply chain there and in China, says there is unease on the part of a number of ODMs (original device manufacturers) who would otherwise aim to benefit from making both Android-compatible and forked versions – the latter principally aimed at China.

«

This point is key. To break into or out of China, OEMs needed to be able to have different sets of services in different countries. And some OEMs wanted to be able to offer forks.
link to this extract

 

What convolutional neural networks look at when they see nudity » Clarifai Blog

Ryan Compton:

»Automating the discovery of nude pictures has been a central problem in computer vision for over two decades now and, because of its rich history and straightforward goal, serves as a great example of how the field has evolved. In this blog post, I’ll use the problem of nudity detection to illustrate how training modern convolutional neural networks (convnets) differs from research done in the past.

*Warning: this blog post contains visualizations corresponding to very explicit nudity, proceed with caution!

«

When it’s *other peoples’* very explicit nudity then it’s worrying, of course, but not if it’s your own. NSFW, unless your work involves teaching neural networks to recognise naked people, I guess.
link to this extract

 

The Democratic Party now belongs to Hillary Clinton » The American Conservative

Lloyd Green:

»Up until now, [Bernie] Sanders drew rock star crowds as he raged against the machine. Two days before the primary, 28,000 people showed up in Brooklyn’s Prospect Park to watch the candidate and to listen to Grizzly Bear. The Wednesday before, a crowd of 27,000 filled Greenwich Village’s Washington Square Park for Sanders and Vampire Weekend. Who needed Coachella when you had Bernie, people asked.

But opening acts aren’t the same thing as organization, concerts aren’t elections, and grand gestures don’t necessarily make you a winner. As Clinton pointed out in her victory speech, “it’s not enough to diagnose problems. You have to explain how you actually solve the problems.” Left unsaid was Clinton’s hand in making the messes she was complaining about. But never mind, Clinton clearly conveyed the message that Sanders was not ready for prime time.

In hindsight, Sanders’ jetting to the Vatican just days before the primary looks like showboating, and his ill-prepared interview before the New York Daily News editorial board seems reminiscent of a stoner trying to ace a college biology exam. And Sanders paid for all of it.

«

Just keeping you up to date on the US elections. You know.
link to this extract

 

Intel to cut 12,000 jobs, puts focus on cloud » WSJ

Don Clark and Tess Stynes:

»Makers of handsets overwhelmingly chose chips based on designs licensed from ARM Holdings PLC, which are available from a plethora of suppliers, and Google Inc.’s Android software, which is available free. No matter how good Intel or Microsoft products became, they could never counter those fundamental changes.

Sales of PCs, meanwhile, have been mainly declining since Apple’s iPad emerged in 2010. The market recently seemed to plateau, but sales again dropped in the first quarter, falling nearly 10%, Gartner Inc. estimated.

The continuing decline has forced Intel to focus on growth areas such as computers for data centers and noncomputer devices outfitted with data processing and communications capabilities, known as the Internet of Things.

“They’ve looked at the decline of the PC market and clearly decided that they are going to put most of their effort elsewhere,” said Rob Enderle, a market research who heads the Enderle Group.

«

Let it be recorded that Rob Enderle said something sensible.
link to this extract

 

Antitrust: e-commerce sector inquiry finds geo-blocking is widespread throughout EU » European Commission

»Margrethe Vestager, Commissioner in charge of competition policy, said “The information gathered as part of our e-commerce sector inquiry confirms the indications that made us launch the inquiry: Not only does geo-blocking frequently prevent European consumers from buying goods and digital content online from another EU country, but some of that geo-blocking is the result of restrictions in agreements between suppliers and distributors. Where a non-dominant company decides unilaterally not to sell abroad, that is not an issue for competition law. But where geo-blocking occurs due to agreements, we need to take a close look whether there is anti-competitive behaviour, which can be addressed by EU competition tools.”

More and more goods and services are traded over the internet but cross-border online sales within the EU are only growing slowly. The Commission’s initial findings from the sector inquiry published today address a practice, so-called geo-blocking, whereby retailers and digital content providers prevent online shoppers from purchasing consumer goods or accessing digital content services because of the shopper’s location or country of residence. This is one factor affecting cross-border e-commerce.

«

Pretty much unnoticed among the hubbub about Android, but likely to have more real effect. More details (and pretty graphs!) in the accompanying factsheet.
link to this extract

 

Huawei P9 Leica-branded dual-cam actually made by Sunny Optical » Digital Photography Review

Lars Rehm:

»When the Huawei P9 was launched recently, its unusual dual-camera grabbed headlines for a couple of reasons. On one hand, its innovative technological concept, with one 12MP sensor capturing RGB color information and a second 12MP chip exclusively recording monochrome image information, had not been seen in a smartphone before. On the other hand, a Leica badge next to the camera module had imaging enthusiasts speculating about just how much technology from the legendary German camera-maker had made it into the Chinese smartphone.

Huawei later provided additional information, saying the P9’s camera module had been certified by Leica but the German company had not been involved in development or production of the optics. Now it has been revealed that the camera module in question is actually made by the Chinese company Sunny Optical Technology of China, which, according to “insider sources”, is authorized to do so by Leica.

«

Reviewers praised the P9’s camera to the skies. Wonder if they’ll revisit what they wrote?
link to this extract

 

Achievement unlocked: 10 years – thank you, Xbox 360 » Xbox Wire

Phil Spencer, head of Xbox:

»From the original Zero Hour launch event, to the incredible reaction received last year at E3 when we announced that you could play your Xbox 360 games on Xbox One, the soul of Xbox 360 was about putting gamers at the center of every decision we make – and we apply this principle across our business to this day.

Xbox 360 means a lot to everyone in Microsoft. And while we’ve had an amazing run, the realities of manufacturing a product over a decade old are starting to creep up on us. Which is why we have made the decision to stop manufacturing new Xbox 360 consoles. We will continue to sell existing inventory of Xbox 360 consoles, with availability varying by country.

We know that many of you became gamers on Xbox 360 and are still active, so it’s important to us that while the overall Xbox gaming experience will evolve and grow, we will continue to support the platform you love in multiple ways.

«

During which time it sold not quite 90m units, and was the cause of $1.15bn in writeoffs over the Red Ring of Death.
link to this extract

 

Is Firefox search worth $375m/year to a Yahoo buyer? » Tech.pinions

I dug into Yahoo’s and Mozilla’s financials:

»Who stands to lose if Yahoo is sold — besides of course Marissa Mayer, who will probably lose her job along with a fair number of Yahoo staff? The surprising, and unobvious, answer is Mozilla and the Firefox browser.

That’s because Mozilla is highly dependent on a five-year contract with Yahoo, signed in December 2014, where it receives about $375m per year to make Yahoo the default search provider in the Firefox browser on the desktop. From 2004 to 2014, that contract was exclusively with Google; now it’s Yahoo in the US, Google in Europe, Yandex in Russia and Baidu in China.

How much is $375m per year compared to Mozilla’s spending? Most of it.

«

Is a Yahoo buyer really going to think that is a deal worth continuing with?
link to this extract

 

Errata, corrigenda and ai no corrida: none notified.

Start up: yet another UK broadband pledge, what is mobile?, hacking Samsung’s theft protection, and more

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A Huawei-made Nexus 6P: no breakage of the camera visor panel here. Photo by TechStage on Flickr.

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

A selection of 12 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Fast broadband for all by 2020 pledged by David Cameron » BBC News

All UK homes and businesses will have access to “fast broadband” [of at least 10 megabits per second] by 2020, David Cameron has pledged.

The PM is to introduce a “universal service obligation” (USO) for broadband, giving the public a legal right to request an “affordable” connection.

It would put broadband on a similar footing to other basic services such as water and electricity.
In 2010, the coalition government promised the UK would have the best superfast broadband in Europe by 2015.

Then, in 2012, a pledge was made by then-Culture Secretary Jeremy Hunt that the UK would have “the fastest broadband of any major European country” by 2015.

He defined high-speed broadband as offering a download speed of greater than 24 megabits per second (Mbps). Communications regulator Ofcom defines it as 30Mbps.

That final sentence completely shows how weak this “pledge” really is: from 30Mpbs down to 24 down to 10. I suspect BT, as the dominant operator which also now owns a 4G network, will aim to fulfil this revised USO via 4G.
link to this extract

Some Nexus 6P owners are reporting spontaneously broken rear glass panels » Android Police

Michael Crider:

The early reaction to the Nexus 6P from both critics and owners has been mostly positive, but a few new owners seem to be encountering serious problems. Specifically, the glass panel on the rear of the phone, which covers the camera, LED flash, and laser autofocus module, is reportedly cracking and breaking on its own. A user on the Android subreddit reported the rear panel cracking, and at least two others have reported similar results, with the panel splitting into multiple cracks with no particular rough handling or impact.

That subreddit is getting pretty big, and there isn’t a lot of joy for the 6P. One person has had two in a row go wrong. Problem for Huawei?
link to this extract

How uBeam transmits energy wirelessly using ultrasound » uBeam

Meredith Perry, uBeam’s founder, has a big explainer about how it works, because people have been saying that either it doesn’t work, or it’s dangerous:

The uBeam system is composed of two parts: a transmitter that emits energy, and a receiver that receives energy. The transmitter is like a sound speaker, but instead of emitting audible sound, uBeam’s transmitter emits high frequency sound. This sound can’t be heard by humans or dogs; it’s called ultrasound. The receiver, like a microphone, picks up the sound and converts it into usable energy. Sound, like light and wind, is a form of energy that can be converted into electrical energy with our proprietary energy harvesting technology. The receiver then sends this electrical power to charge or power an electronic device.

link to this extract

Mobile, ecosystems and the death of PCs » Benedict Evans

Evans wrestles with the question of “what is ‘mobile’?” in the face of competing devices like the SurfaceBook, the Surface Pro, iPad Pro and so on:

Each generation of technology goes through an S-curve of development – slow improvement of an impractical product, then explosively fast improvement once fundamental barriers are solved, and then slowing iteration and refinement as you solve every last issue and the curve flattens out. PCs are on that flattening part of the curve, just as the [fastest ever piston-powered aircraft developed at the end of WW2, soon surpassed by jets, the Republic] Rainbow was.

They get perfect because you’re debugging the big things you invented in the past, and now your innovation is in the extra little things (such as the Rainbow using exhaust for extra thrust), and there are no big new innovations to debug. But meanwhile, the new ecosystem is catching up, and the curve of development and innovation for that generation will flatten out way out of reach. The new curve is crossing the old one. This is why they look simliar – this is why a Surface Pro and an iPad Pro look similar. They both exist right at the point that those development curves cross. The iPad might still be a little below, but its curve is heading up.

That is, the point that you can start to do old ecosystem things on what look like new ecosystem devices is also the point that the new ecosystem can do those things too – but the new ecosystem has 10x the scale, and the new ecosystem is just starting down the innovation track where the old one is at its end.

The really tricky part is knowing where on the S-curve something is, and whether there’s still money to be made from it. As Evans points out,

No-one is going to found a new company to make Win32 applications (though enterprise Windows apps will be worked on for a long time, just as mainframe apps were [after the IBM PC arrived]).

link to this extract

It’s incredibly easy to bypass Factory Reset Protection on a Samsung phone [with video] » 9to5 Google

Stephen Hall:

Factory Reset Protection was introduced with Android Lollipop, and, like Apple’s iCloud Activation Lock, it’s supposed to make it really hard to resell a stolen Android phone. The gist is that when you use Android recovery menu to reset a phone to factory settings, the phone will require upon reboot that you sign in using a Google account you previously used on the device before resetting it. If someone steals your phone and wipes it, they need your Google account for it to be anything but a brick.

Well, it appears that a flaw in Samsung’s phones lets potential thieves around this security measure, and it looks like the workaround takes just about five minutes to pull off…
Obviously a thief wouldn’t be able to get around a password-secured phone, so a factory reset would require going to Android’s recovery menu after a reboot (as opposed to going into the Settings app and doing a factory reset from there).

But since Samsung’s phones automatically pull up a file manager when you plug in an external storage device (even in the set up process), all you have to do is load an app file that lets you open up the stock Settings app. Press a couple buttons to do what the phone thinks is a legitimate/authorized reset, and the phone reboots without tripping Factory Reset Protection.

D’oh.
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Google annual search Statistics » Statistic Brain

The number of annual searches conducted by Google, according to ComScore and the “Statistic Brain Research Institute” (sounds grand).

Compare the numbers in the top two lines of the table. It suggests that in 2014 the total number of Google searches fell, for the first time ever. Even within margins of error, that suggests search growth has stopped.
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XcodeGhost S: a new breed hits the US » FireEye Threat Research

Yong Kang, Zhaofeng Chen, and Raymond Wei:

Through continuous monitoring of our customers’ networks, FireEye researchers have found that, despite the quick response, the threat of XcodeGhost has maintained persistence and been modified.

More specifically, we found that:

• XcodeGhost has entered into U.S. enterprises and is a persistent security risk
• Its botnet is still partially active
• A variant we call XcodeGhost S reveals more advanced samples went undetected

After monitoring XcodeGhost related activity for four weeks, we observed 210 enterprises with XcodeGhost-infected applications running inside their networks, generating more than 28,000 attempts to connect to the XcodeGhost Command and Control (CnC) servers – which, while not under attacker control, are vulnerable to hijacking by threat actors.

Pretty dramatic. And it can affect apps via third-party frameworks, as Possible Mobile discovered. Meanwhile, on Android…
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Lookout discovers new trojanized adware; 20K popular apps caught in the crossfire » Lookout Blog

Michael Bentley of the anti-malware company:

Auto-rooting adware is a worrying development in the Android ecosystem in which malware roots the device automatically after the user installs it, embeds itself as a system application, and becomes nearly impossible to remove. Adware, which has traditionally been used to aggressively push ads, is now becoming trojanized and sophisticated. This is a new trend for adware and an alarming one at that.

Lookout has detected over 20,000 samples of this type of trojanized adware masquerading as legitimate top applications, including Candy Crush, Facebook, GoogleNow, NYTimes, Okta, Snapchat, Twitter, WhatsApp, and many others.

Malicious actors behind these families repackage and inject malicious code into thousands of popular applications found in Google Play, and then later publish them to third-party app stores. Indeed, we believe many of these apps are actually fully-functional, providing their usual services, in addition to the malicious code that roots the device.

Oh, and also: if you get infected you probably won’t be able to uninstall it; you’ll either need a pro or a trip to buy a new one. (Factory reset won’t do it.)
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BlackBerry Priv review: good, but probably only for keyboard junkies » Android Police

David Ruddock is befuddled by those little things with letters on:

But time for some real talk about those keys, in respect to my particular tapping of them. I am awful at these tiny little keyboards. Like, your grandpa trying to use an ATM when 6 other people are in line behind him and all of them are clearly in a rush awful. It’s just not my thing, it never has been, and it never will be. To me, this is mind-bendingly unintuitive and would take me months to master in anything approaching a respectable way. I’m not going to be using the Priv for months. I cannot give you a good evaluation of the keyboard on the merits. Sorry. I can show you what it looks like, though! Also, it’s backlit.

My thoughts without getting into the related software bits are as follows: the keys are really small. They depress and feel clicky. They are keys. Again, I am sorry. I really, really, can’t get into this keyboard-for-ants thing, even as I have forced myself to use it on the Priv.

This is the reason why anyone who began using a smartphone after 2010 is going to find the Priv completely weird. It’s like introducing typewriters to schools that have used iPads.
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HTC One A9 review » AndroidAuthority

Joshua Vergara:

Remember the Sensor Suite originally announced in the HTC One M8? It allowed for the phone to go straight into specific areas with taps and swipes after the phone knew it was brought up for usage. Now, because the fingerprint reader is there, it is the wall that prevents all of these extra unlocking methods from being used. That also doesn’t include the fact that it can be a home button, without any capacitive keys accompanying it. Soft keys are still used, so using the reader as a home button takes some getting used to – and fiddling between the two, we’ve found to be really common.

Of course, there is also the omission of BoomSound speakers due to the addition of the fingerprint reader. This is a pretty bold move for the company, as one of its most-recognized features isn’t here anymore. Sound, thus, gets a big downgrade with the bottom-mounted unit. It certainly doesn’t get very loud at all, and it’s safe to say that we miss the stereo audio found in past One devices.

Storage options with the A9 are pretty standard, with the option to choose between 16 or 32GB variants. It should be noted that the 16GB model comes with just 2GB of RAM, while the 32GB variant comes with 3GB. We’ve been testing the 32GB model with 3GB of RAM, and we’ve noticed that it gets a little slow at times.

Jeepers – it’s sometimes slow with 3GB of RAM? None of this is really a vote of confidence.
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HTC pushes US One A9 pre-order shipments back by up to several weeks, delays Verizon compatibility indefinitely » Android Police

David Ruddock:

While the A9 is indeed a pretty good phone, there’s no doubt HTC’s bungled the launch of the device a bit. First, the whole promotional pricing thing (and the 2GB/16GB variant abroad being so damn expensive), and now? A pre-order shipment delay for those who did choose to buy one. We’re hearing from US readers that HTC has sent out the following email, pushing back shipment of the initially available colors until next Tuesday, November 10th, at the earliest. Some customers, though, will be waiting much longer than that – especially if you ordered a Sprint variant.

In addition, HTC has now delayed Verizon network compatibility for the One A9 indefinitely. They had promised compatibility shortly after the November launch, then in December, and now have no ETA for the feature.

And it gets worse; certain colour variants are going to take weeks and weeks to ship. Dead on non-arrival?
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Who the f*** is that advertiser? » Medium

Rob Leathern on the problem of validating who is advertising (which amounts to “running random Javascript on your system); the Interactive Advertising Bureau wants to charge $10,000 per company for this. Leathern laughs:

Google Adwords probably has over 2.5 million advertisers by this estimate. The top 100 to 1,000 advertisers (likely to be cost-insensitive enough to sign up for a program like this) aren’t the problem for online and mobile advertisers. The problem area is distinguishing between tens of thousands of large but legitimate advertisers, and those with money who are not legitimate or who are fronts for malware, botnets, and schlocky affiliate offers.

The goal shouldn’t be to register the top few thousands advertisers, but make the barriers low enough that we can validate every single advertiser consistently, and then do the kinds of auditing, checks and follow-up necessary to stop problem advertisers from being banned and then popping back up right away under another name or identity. Once you can accurately identify advertisers and have every part of the value chain understand this information, both publishers and consumers should be able to decide what kinds of advertisers they want to block.

If I had to guess, it’s a $10/year fee (ten dollars) and not $10,000, that will be a better incentive to get companies to participate and to create the infrastructure needed to validate this information at enormous scale.

Even at that level, it wouldn’t happen. And malware generators would still find ways to get around it.
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Errata, corrigenda and ai no corrida: none notified. But the week is still young.

Start up: Huawei’s ambition, HTC R+D layoffs, 3D copyright, Google’s odd war on app ads, and more

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FTC settles with Machinima for paying YouTube influencers to endorse Xbox One » GamesBeat | Games | by Dean Takahashi

Dean Takahashi:

According to the FTC’s complaint, Machinima and its influencers were part of an Xbox One marketing campaign managed by Microsoft’s advertising agency, Starcom MediaVest Group. Machinima guaranteed Starcom that the influencer videos receive at least 19 million times.

In a statement, Machinima said, “Machinima is actively and deeply committed to ensuring transparency with all of its social influencer campaigns.  Through collaboration with the FTC, we are pleased to have firmly resolved this matter, related to an incident that occurred in 2013, prior to Machinima’s change of management in March 2014. We hope and expect that the agreement we have reached today will set standards and best practices for the entire industry to follow to ensure the best consumer experience possible.”

In the first phase of the marketing campaign, a small group of influencers received access to prerelease versions of the Xbox One console and video games in order to produce and upload two endorsement videos each. According to the FTC, Machinima paid two of these endorsers $15,000 and $30,000 for producing You Tube videos that garnered 250,000 views and 730,000 views, respectively.

After that, Machinima promised to pay a larger group of influencers $1 for every 1,000 video views, up to a total of $25,000. Machinima did not require any of the influencers to disclose they were being paid for their endorsement.

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Huawei chips away at Samsung » WSJ

Juro Osawa:

For the past three years, Samsung Electronics Co. has been the world’s top seller of smartphones, but its global lead is now under attack from fast-growing Chinese rival Huawei Technologies Co.

Long known as a telecommunications-equipment supplier to global carriers, Huawei has already toppled Samsung in China, the world’s biggest market, where 425 million smartphones are expected to be shipped this year. Globally, the Shenzhen-based company became the third-largest smartphone maker in the second quarter, according to data from IDC. This is due, in part, to its ability to gain market share in the Middle East and Africa, where smartphone growth exceeds that of any other region.

With handset revenue up 87% in the first half of this year, Huawei expects profit from its smartphone business to more than double this year. If its pace of growth continues, Huawei hopes to challenge top competitors Samsung and Apple in the smartphone market.

Huawei doesn’t (yet?) break out its handset profits. It’s aiming to ship 109m smartphones this year – a weirdly precise figure – having shifted 47m in the first half, so 62m to go. Apple sold 192m phones in 2014, and 109m in the first half of this year, so the challenge might take a little while yet.

Cleverly, it introduced a phone with a “Force Touch”-style capability at IFA on Wednesday; it showed it estimating the weight of an orange resting on the screen. Not an apple?

The biggest challenge will be teaching non-Chinese how to say the name (Hoo-waa-way).
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Chinese mobe market suffers pre-pwned Android pandemic » The Register

G DATA found that more than two dozen phones from different manufacturers were already compromised straight out of the box.

Kit from manufacturers including Huawei, Lenovo and Xiaomi have pre-installed espionage functions in the firmware. G DATA suspects that middlemen modified the device software to steal user data and inject their own advertising to earn money.

Other possibilities include unintentional infection through compromised devices in the supply chain (a problem which affected Vodafone Spain back in 2010) or intentional interference by government spies. Many of the models implicated in the malfeasance sell well in China.

The pre-pwned device issue has become a perennial problem for privacy-conscious smartphone users. Sticking to the Play Store, avoiding dodgy websites and following common-sense security precautions are no help in such cases.

If the phones got to G DATA then it seems unlikely to have been the Chinese government, non? More like middlemen seeking cash for ads.
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HTC to lay off 600 employees working in Taiwan » Digitimes

Trevor Huang and Steve Shen:

About 400 out of the more than 9,000 employees currently at HTC’s headquarters in Taoyuan will be laid off, confirmed the Taoyuan City Government, which has received the layoff plan from HTC. The 400 employees include production line works, R&D and backup personnel.

The New Taipei City Government also confirmed that it had received a notification from HTC about discharging 200 workers at its Xindian plant by the end of October. Those who will lose their jobs at the Xindian plant, which has a total of 2,912 employees, are mostly R&D personnel.

Cutting R+D staff seems like an obvious thing to do when finances are tight, but tends to leave you with nothing to go forward with when – if – you emerge from the squeeze.
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Apple receiving G/G touch samples for 2016 iPhone » Digitimes

Siu Han and Alex Wolfgram:

Makers have already begun sending samples of fully laminated G/G technology to Apple and Corning along with Asahi Glass have also reportedly sent glass samples.

Market observers have recently noted that Apple is in discussions over whether to go back to G/G instead of in-cell technology for future iPhone devices as in-cell technology is currently struggling with various production bottlenecks that are preventing Apple from adding new features as well as increasing resolutions. As a result, touch panel makers are aiming to create G/G touch panels that would allow Apple to create smartphones similar in thickness to current iPhones equipped with in-cell touch panels.

G/G touch panels may also help Apple develop bezel-free smartphones as in-cell touch panels reportedly are struggling with touch sensitivity on the edges. Additionally, in-cell touch panels also make it difficult for vendors to pursue higher resolutions including Ultra HD (4K) due to current bottlenecks, the observers said.

Tells you something about what Apple might have planned for 2016. Incremental steps every time.
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What happened to the Readymake: Duchamp chess pieces? » Scott Kildall

Kildall and Bryan Cera had scanned these very rare pieces and uploaded the scanned files to Thingiverse, a site for sharing Makerbot 3D printing files:


The answer is that we ran into an unexpected copyright concern. The Marcel Duchamp Estate objected to the posting of our reconstructed 3D files on Thingiverse, claiming that our project was an infringement of French intellectual property law. Although the copyright claim never went to legal adjudication, we decided that it was in our best interests to remove the 3D-printable files from Thingiverse – both to avoid a legal conflict, and to respect the position of the estate.

Disputes like this might become commonplace if 3D printing really breaks through.
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Beautiful New Designs for Full-Screen In-App Ads » Inside Google AdWords blog

Pasha Nahass, product manager:

Nearly 60% of smartphone users expect their favorite apps to look visually appealing. We’ve always believed that in-app ads can enhance an app’s overall experience by being well designed. So today we’re announcing a completely new look for our interstitial in-app ad formats – also known as full-screen ads – that run on apps in the AdMob network and DoubleClick Ad Exchange.

Ah. So let’s walk through this.
• Full-screen interstitials for apps from mobile search results = bad, attracting search ranking penalties
• Full-screen AdWord ads inside existing apps = good. Especially if, as this post suggests, you use the full-screen interstitials for a mobile app install campaign.

On Twitter, this was described to me as “just don’t block the front door [from search] with an interstitial.” Which makes sense; if you’re already inside the app, you’re less likely to bounce away from a full-page ad.
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Silk Road case: US agent investigating dark web drug site admits to $800,000 Bitcoin theft » City A.M.

Clara Guiborg:

Former secret service agent Shaun Bridges has pleaded guilty to Bitcoin theft, admitting to sending over $800,000 worth of the digital currency to his personal account while he was investigating the dark web drug trafficking site.

Silk Road was shut down in the autumn of 2013, having netted Bitcoin sales of over $200m of drugs and other illegal items during its two years of operations. The site’s founder, Ross Ulbricht, who went by the alias “Dread Pirate Roberts”, was sentenced to life imprisonment during a highly-publicised case.

But the investigation itself led to further illicit uses of Bitcoin.

Bridges is the second US federal agent to have fallen foul of Bitcoin theft temptation during the investigation, after former agent Carl Force pleaded guilty to this just two months ago.

Did they think that bitcoins were untraceable? Strange.
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Almost no one sided with #GamerGate: a research paper on the internet’s reaction to last year’s mob » Superheroes in Racecars

Livio de la Cruz is a program manager at Microsoft, and has done an exhaustive study on coverage and reactions of Gamergate:

The Week compared GamerGate to a soccer team that has only ever managed to score on its own goal and responds with self-congratulatory remarks on a job well done. Their efforts to silence feminist and political critique of games actually ended up inspiring more of it. Their efforts to convince journalists to stop critiquing gamers for their sexist, bigoted behavior has only amplified people’s awareness of society’s misogyny problem. Their efforts to discredit Zoe Quinn, Leigh Alexander, Anita Sarkeesian, and Brianna Wu have led to them becoming some of the most respected voices in games, as more people are inspired by their work against abuse and their advancement of the medium itself. Their efforts to scare women out of the games industry actually led to more money, time, and talent being dedicated towards fixing tech’s diversity problem.

Before GamerGate, people might have had a rough idea of how diversity in teams was good for companies and how online harassment was maybe a problem that needed to be fixed. But now I suspect that people’s thought processes tend to go like this: Why do we need diversity in tech? Because of GamerGate. Why do need to fix online harassment? Because of GamerGate. Why is feminism so important? Because: GamerGate.

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Windows 10 first month worldwide usage well ahead of that recorded by Windows 8 » StatCounter Global Stats

In its first calendar month since launch, Windows 10 worldwide usage share far exceeds that of Windows 8 in the same time period, according to independent web analytics company StatCounter. Its analytics arm, StatCounter Global Stats finds that Windows 10 level of usage after one month also exceeds that recorded by Windows 7.

StatCounter conducted a special analysis of the take up of Edge by Windows 10 users. It found that Edge usage on Windows 10 peaked at 20.1% on 30th July, the day after the global launch, but fell back to 14.1% on the 31st August.

Easy to explain that dropoff: people went back to work on the August Monday (it wasn’t a holiday in the US), stopped using their Windows 10-updated machines at home, and used the old-OS machines at work. The peak in July is probably explained in the same way – people were on holiday.

Remarkable what happens when you force-upgrade peoples’ machines for free.
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Google shut down a secret Google Maps project called ‘Google Here’ » Fortune

Nice scoop by Erin Griffith:

The product was called Google Here, according to a document obtained by Fortune that describes the project’s specifications. The effort spanned multiple departments and was led by Dan Cath, a strategic partner manager, and the Google Maps team. The launch included partnerships with retailers, including Starbucks SBUX -2.03% . Had it launched, Google Here would have been available to more than 350 million Android users by early 2015, with plans to support iOS later in the year.

But people familiar with the project say it was shut down for two reasons: Google Here was potentially too invasive, and the company wasn’t sure if many retailers would want it. (Not helping matters, Nokia has used the name “Here” for its own mapping service.) A Google spokesman declined to comment.

Google Here worked by sending a notification to a smartphone user’s lock screen within five seconds of their entering a partner’s location. If the user clicked on the notification, a full screen HTLM5 “app” experience would launch. Google Here would know when to send the notification via Google Maps and beacons placed in the stores of participating partners. Google planned to supply the beacons to partners for the launch, according to the document. The experience could also be found by going to the Google Maps app.

Too invasive? Probably more likely retailers weren’t prepared to put the money in for an unclear return, since it would be permission-based (and hence isn’t really that invasive).
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Start up: YouTube’s smartest change, Google + Huawei, the truth on ads, Windows Phone redux, and more

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The ‘terrifying’ moment in 2012 when YouTube changed its entire philosophy » Business Insider

Jillian D’Onfro:

the discovery algorithm often recommended videos that weren’t the best fit. For example, if a user searched for the footage from a recent fight, YouTube might recommend a clip with a thumbnail image of a juicy punch and a title about someone getting knocked out. When the user clicked, the actual video would be not fight footage, but a dude sitting in his living room just talking about the epic punch.

But when the frustrated user clicked through several different videos, the algorithm tallied up the views and counted it as an accomplishment.  

“We realized that if we made the viewer click that many times, it didn’t seem to be a good estimate of how much value they were deriving from YouTube,” [YouTube’s director of engineering for search and discovery, Cristos] Goodrow said. “Instead, we realized that if they didn’t leave a video and continued watching, that seemed like a better estimate of the value they were getting.” 

So, after bouts of data collection and analysis coupled with countless meetings, YouTube re-jiggered its search-and-discovery algorithm on March 15 to make watch time, not views, the determining factor in what videos to recommend.

Seems obvious. But actually, that’s the sort of customer dissatisfaction that’s really hard to spot in the first place, and then really hard to change – because it upsets the existing order.

Google’s best Android friend » The Information

Amir Efrati:

Unlike other Android hardware partners like Samsung and Xiaomi, Huawei has no ambition whatsoever to compete with Google in mobile software and services. Huawei has agreed to help Google distribute a mobile app store in China, a market where Google has largely been shut out, say people briefed on the talks between the companies. (It remains to be seen whether Google can get a green light from the government to do so.)

Huawei, whose core networking-equipment business has helped it develop relationships with wireless carriers globally, could help Google expand its nascent wireless network service outside the U.S. and work on other wireless experiments to expand Internet access in emerging markets. Google might also seek to license some of Huawei’s patents in that area.

Meanwhile, Huawei this fall will become the first mainland China manufacturer to produce a “Nexus” smartphone together with Google, people with direct knowledge of the project have said. While the phone likely won’t be a big seller, it will serve as a status symbol for a privately-held Chinese firm that is trying to boost its consumer brand around the world and be as beloved as Coca-Cola.

Risky game for Google: Huawei has found it impossible to shake off suspicions in the US about its Chinese ownership and allegations of spying. There’s absolutely no evidence against Huawei, but that isn’t an obstacle for some.

Content blockers, bad ads, and what we’re doing about it » iMore

Rene Ritchie explains why there are sometimes tons of ads on iMore pages – which led one person to write a content blocker for iOS 9. This part though is worth noting:

Just as desktop ads pay far less than old-fashioned print ads, mobile ads pay far less than desktop. Because phone displays are smaller than desktop, ads are also far harder to ignore. They’re not off to the side or a small strip on a big screen. They’re in our faces and in our way.

As more and more people move to mobile, revenue goes down, and the typical response is to amp up the ads in an attempt to mitigate the loss. That, of course, just makes them even more annoying.

Ad networks have not responded well to any of this. Hell, they still haven’t fully responded to Retina and HiDPI displays, and those came out in 2011.

You’d think the ad industry would be at the forefront of user experience, and that making gorgeous, high performance, highly engaging ads would boost conversion and ultimately income for everyone. Unfortunately, it seems like whatever math they’re running shows crappy ads perform well enough that making great ads isn’t worth the extra effort.

Note that first paragraph: “because phone displays are smaller than desktop, ads are also far harder to ignore”. In that case, why do they pay less on mobile, which has more readers?

Scary internet scam becoming disturbingly common » TidBITS

Randy Singer:

While the legions of Mac viruses still haven’t appeared, there is a new nasty out there that takes advantage of this paranoia. It isn’t a virus, a Trojan Horse, or any other sort of actual malware. Instead, it’s more like a phishing scam, using social engineering to get you to do something that the bad guys want you to do. It does it by scaring the willies out of you, and it is becoming disturbingly common. Some call it “scareware” or “ransomware.”

What happens is that you visit a Web site and seemingly have your browser maliciously frozen. You’ll find that you can’t quit, nor can you navigate away from the page by clicking the Back button.

Next, a page or pop-up appears telling you any of a number of stories (often tailored to your location), perhaps that your Mac has a problem or has illegal material on it, or that your data has been encrypted by some malevolent entity.

The real culprit: a (non-destructive) Javascript hack. But if you follow the scam instructions, you will have a real problem.

Musings on autonomous transport: are self-driving Starbucks the future? » Core77

Michael Ditullo:

what happens when the car evolves from a means of transport to a place itself? Commuting to work? Take a Starbucks owned and operated car where you can get a latte and lounge at a table while working on your laptop along the way. A long drive to see the in-laws? Call for a movie car where you can watch a Michael Bay blockbuster in full surround sound on that two hour ride. Need to run some errands and grab lunch? Sounds like a burrito car. Need to work off the day’s stress on the way home? Pick from a workout car or a zen meditation car.

Once upon a time Starbucks called itself the “third place.” Not home, not work, that other place you wanted to go in-between. The self-driving car could very well evolve into that third place, but a place on-the-go. The in-between place becomes something that can also get you where you need to go. I imagine an entire crop of small businesses existing solely on cars. The payment in exchange for the goods and services these businesses provide would pay for the car journey itself.

This all assumes that we’ll need to travel to exactly the same extent. Can we be sure that’s true? Why take the Michael Bay blockbuster car if you could get the same at home? Does the car become a relief from home? So many assumptions are built into the way we view self-driving cars. More working from home, less travel?

The three unlikely lessons from the Microsoft/Nokia Adventure » VisionMobile

Michael Vakulenko:

Looking at the industry through the lens of software-defined business models has helped us to accurately predict years before the story unraveled the duopoly of Apple and Google (2009), the demise of Palm (2009), the outcome of HP’s foray into mobile with WebOS (2010), BlackBerry’s meltdown (2010), and the failure of Windows Phone (2012).

The story repeats in Internet of Things. Much like in mobile, software-defined business models cause deep shifts in how value is created and delivered. The IoT winners will be decided by business model innovation, not by technology, product features or standard committees. VisionMobile’s Stijn Schuermans wrote about it here – What the Internet of Things is not about.

How bad is it for Microsoft if it misses out on the IoT?

Microsoft takes $7.6bn Nokia writedown and cuts 7,800 jobs » FT.com

Richard Waters and Richard Milne with the collateral damage:

The job cuts will include 2,300 of the 3,200 remaining Nokia handset workers in its home country of Finland, adding to a decline in the pulp and paper industry that has led some to dub it the new “sick man” of Europe as unemployment and public debt levels have risen.

Microsoft took on 25,000 workers with the acquisition in April last year, inflating its headcount to 128,000. By the end of March this year it had cut its workforce back to about 119,000.

“In practice, this means the end of Nokia’s old business in Finland,” Juha Sipilä, the country’s prime minister, told a hastily-convened press conference on Wednesday. The situation is so serious in the country, which has been mired in recession for the past three years, that the new centre-right government has called for an extra budget in September to help the affected workers.

Also in the story:

“It’s a repudiation of the Ballmer strategy to buy Nokia,” said Ken Dulaney, an analyst at Gartner. Microsoft should have acquired BlackBerry instead to focus on its core business users, he added — a strategy that the company backed on Wednesday, as Mr Nadella announced a narrowing of the handset division’s focus to making handsets for workers and a smaller number of “flagship” devices.

Yes: Microsoft really should have bought BlackBerry. Wouldn’t have cost much more, and would have been a valuable asset adding to what it’s trying to do. Love to know the discussions that happened, or didn’t, over that.

Wikileaks release indicates Hacking Team sold spyware to FSB, Russia’s secret police » Forbes

Tom Fox-Brewster:

in December 2012, a NICE employee asked Hacking Team whether it had sold directly to the FSB rather than via the Israeli company.

“Yes we did,” the Hacking Team employee responded. “We discussed this opportunity in the past and you were aware of the fact we were working there. I’d like to take advantage of this conversation to ask you a feedback about Azerbaijan.”

Asked about working in Russia, Hacking Team head of communications Eric Rabe said: “We have not sold to blacklisted countries — at least when they were actually on a blacklist. As you know these things can change and a country, that is considered respectable, may later on turn out not to be.”

So classy. Here’s the Wikileaks link, if you’ve got a few spare years to read through the emails.

Hacking Team Flash zero-day tied to attacks in Korea and Japan… on July 1 » Trend Micro

Weimin Wu:

Earlier this week several vulnerabilities were disclosed as part of the leak of information from the Italian company Hacking Team. We’ve noted that this exploit is now in use by various exploit kits. However, feedback provided by the Smart Protection Network also indicates that this exploit was also used in limited attacks in Korea and Japan. Most significantly, these took place before the Hacking Team leak took place; we first found this activity on July 1.

The exploit code we found is very similar to the code published as part of the Hacking Team leak. As a result of this, we believe that this attack was carried out by someone with access to the Hacking Team tools and code.

According to the Adobe security bulletin, the vulnerability CVE-2015-5119 affects all of the latest Flash versions on Windows, Mac, and Linux. Adobe has since provided a security update for this vulnerability.

Not clear from this – and apparently not to Trend Micro either – whether this attack was by Hacking Team, or by someone who had already broken into their systems and was using this attack for themselves.

In other news, Adobe’s security update team must be one of the hardest-working in the industry.

Apple plans record number of new iPhones » WSJ

Lorraine Luk and Daisuke Wakabayashi say it has ordered 85m-90m devices – up from 70m-80m last year:

The changes in the iPhone models expected to be released later this year will be less noticeable than last year’s. The phones are expected to feature Apple’s Force Touch technology that can distinguish between a light tap and deep press, allowing users to control a device differently depending on how hard they push on the screen, according to people familiar with the matter. Apple has added this feature to the Apple Watch and MacBook laptop computer.

In addition to keeping the display size unchanged, Apple is expected to keep the screen resolution about the same, according to people familiar with the matter.

It may offer a fourth color for the aluminum casing of the iPhone, in addition to silver, gold and space gray, these people said.

Force Touch is being signalled so strongly it would be surprising if it weren’t there. (I’ll elucidate later.)

Finland enlists convicted Lizard Squad hacker to fight cyber crime » Newsweek

Caroline Baylon:

17-year-old Julis Kivimaki, a member of the infamous Lizard Squad hacking group, was found guilty of over 50,000 counts of computer crime by a Finnish court, local media have reported, but rather than face prison time, the judge has ordered that Kivimaki himself help “fight against cyber crime”.

The extent of Kivimaki’s punishment will be a two-year suspended sentence, the confiscation of his computer, and being made to return some €6,500 in profits earned from cyber crime.

Kivimaki, known by the online nickname “zekill”, has been hacking since age 15 and committed a wide range of attacks directed at individuals, engaging in online harassment and identity theft, as well as corporations, where he triggered data breaches, hijacking of emails, and stealing credit card information.

To catch a thief…

Start up: iOS 9, Google and adblocking; Kaspersky under attack; the Search for Harm Data, and more

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A blow for mobile advertising: the next version of Safari will let users block ads on iPhones and iPads » Nieman Journalism Lab

Joshua Benton:

Why would Apple do this?

An Apple partisan might argue it just wants to give users control of their iPhone experience, and having debuted extensions in the last version of iOS, allowing them to alter web content is a natural next step.

An Apple realist might argue that its great rival Google makes more than 90% of its revenue from online advertising — a growing share of that on mobile, and a large share of that on iPhone. Indeed, Google alone makes about half of all global mobile advertising revenue. So anything that cuts back on mobile advertising revenue is primarily hurting its rival.

An Apple cynic might note that the company on Monday unveiled its new News app, which promises a beautiful reading experience — and a monetization model based on Apple’s iAds.

Oh, it’s that cynic again. Alternatively, someone who’s used iOS might have found their browsing hijacked by bad ads that take you to the App Store, and wanted to block those too – they’re a terrible user experience, and Apple hates things that cause bad UX (remember Flash and Java?)

Google gets its slice principally from iOS search – will those get blocked? Meanwhile, and unintuitively, AdBlock Plus doesn’t seem keen on it.

Google losing billions in adblocking devil’s deal » Inside PageFair

Pagefair is an “anti-adblock technology company”:

even more controversial than the debate over the ethics of adblocking is the sheer scale of the payments being made – and what that money is funding.

It is safe to assume that Google – rumored to be paying $25m – is the largest customer on the Acceptable Ads program. This is a relatively small sum for a global corporation with revenues of nearly $60bn, while being a huge cash injection for a fast-growing adblocking startup in Cologne. It is not credible that these funds are simply being spent on the administration of the acceptable ads program. Instead, they are presumably being reinvested in the future development of adblocking.

“Acceptable Ads” means that if you pay up, your ads don’t get automatically blocked. Taboola has done the same; AdBlock Plus must be minting it. And there’s no sign that this is going to go away. For both ABP users and ABP itself, it works perfectly.

Kaspersky Lab investigates attack on its own network » Kaspersky Lab Official Blog

Eugene Kaspersky:

We’ve found that the group behind Duqu 2.0 also spied on several prominent targets, including participants in the international negotiations on Iran’s nuclear program and in the 70th anniversary event of the liberation of Auschwitz. Though the internal investigation is still underway we’re confident that the prevalence of this attack is much wider and has included more top ranking targets from various countries. I also think it’s highly likely that after we detected Duqu 2.0 the people behind the attack wiped their presence on the infected networks to prevent exposure.

Kaspersky hints, but doesn’t outright say, that a nation state was behind the attack.

Washington scrutinizes the sharing economy » NYTimes.com

Rebecca Ruiz:

Matthew W. Daus, former commissioner and chairman of the New York City Taxi and Limousine Commission, took issue with calling Uber a member of the sharing economy.

“We’re coming up with these incredible definitions and clarifications, and I’m just trying to throw some water on everybody’s faces,” Mr. Daus said. “There’s no sharing going on. This is about for-hire transportation, and there needs to be a level playing field,” he said, suggesting that capping the number of vehicles on the road was necessary.

Across town at the exact same time, at another conference focused on the intersection of technology, business and government, the sharing economy was also under the microscope. The conference, called Techonomy Policy, included participation from the F.T.C. and the Federal Communications Commission.

“How sustainable is this?” asked Arun Sundararajan, a professor at New York University’s business school.

Perhaps more sustainable than some would like. Why would AirBnB or Uber go away?

Analysing Google’s public response to the EC’s Statement of Objections

Remember Google’s blogpost “The Search for Harm“, which suffered from misquoted statistics about incoming search to news websites?

This analysis by Foundem (one of the EC complainants over search) suggests – very strongly, with data to back it up – that the graphs Google included there to show how little effect it was having on online price comparison shopping, which is what the EC complaint is about initially, looked at quite different topics.

And that when you look more closely at what Google’s been doing, you discover far more effect than you might expect.


It’s a fascinating analysis; Google has questions to answer.

Huawei delays launch of its SmartWatch to September-October in China » TalkAndroid.com

Peter Holden:

Huawei’s Watch was first unveiled at MWC back in March, and it is still one of the better-looking Android Wear devices around. There is no set shipping date for the Huawei Watch just yet, although it is available to pre-order in most countries. Not in China though, availability of the Huawei Watch has been delayed until at least September, although October hasn’t been ruled out if things don’t go to plan.

It all stems down to Google having left the Chinese market due to disagreements with the Chinese government. This means that Google’s Services won’t work in China, which has left Huawei with the task of adapting Android Wear to use its own services. Obviously this isn’t going to be a quick fix.

Given that many westerners can’t pronounce Huawei (it’s Hoo-wah-way), and won’t know it has a smartwatch, no great loss of face. Also, Peter Holden: things stems *from*, not “down to”.

Open data on council spending is largely unread by voters » The Guardian

Ben Worthy at the Public Leaders Network:

there has been less interest in the data than many hoped. Council finance data is viewed around 200 times each month. The person on the street has not been desperate for data. No army of armchair auditors has sprung up. There are some enthusiasts here and there; a concerted campaign in Barnet used open data to build its case against the (now deceased) Conservative council. But few people have the time and, most importantly, the motivation to scroll through complicated pdf documents of raw council spending data. Data needs a narrative, and pdf documents and spreadsheets don’t yet tell a good enough story.

This links to a further problem. If you do find a smoking gun among the spreadsheets, who do you send it to? The council itself, the opposition or the local press? It’s notclear what the next step would be and how it would fit in with the processes by which councils are accountable to citizens.

The better news is that something is being done with the data. Users include businesses, pressure groups and journalists as well as a handful of members of the public. While they haven’t unleashed a wave of accountability, there have been sudden bursts of data-driven questioning of local authorities.

Sounds like there’s been pretty much exactly the right amount of interest in the data. And the key point is, if the councils and politicians know that the data is auditable, they will realise they can’t hide stuff. Compare and contrast: FIFA payments.

Why I’m breaking up with the Apple Watch » NYTimes.com

Jessica Friedman:

the busywork the watch’s apps can replace — handing over airline boarding passes, opening hotel room doors — seems less like an advance than a loss of control. Call me a Luddite, but honestly, I don’t mind unlocking things with my actual hands. The new watches announced this week may change the situation, but I am not sure I have the patience to wait.

Likewise (and I know this will be heresy to anyone really excited about the coming Fitbit initial public offering), the fitness-app aspect — the tracking of my steps, the measuring of my heart rate, the telling me to stand up when I am in the middle of an article — seems more like a burden than freedom.

I have worked hard to wean myself from a reliance on exercise machines telling me how hard I had worked — how many calories I had burned, how many stairs I had climbed — in part because I knew I was cheating pretty much all the time anyway and thus could not trust the results, and in part because it became an excuse to modify, or not, my ensuing behavior.

But the truth is, I know when I am in shape; I can see the difference in my body and feel it when I ride my bike in the park. The watch threatened to drag me back into a numbers-driven neurosis, and that’s a temptation I would rather not have.

The secrets of seven amazingly surreal photos revealed » Lumia blog

When it comes to Lumia photography, we think Pritesh Patel knows a thing or two about inspiring others. His amazingly surreal work is inspiring on many levels, with a magical combination of skill, creativity, and originality all working together to create some seriously fantastic photos.

Pritesh is a 22-year-old Mechanical Engineering graduate from Anand in Gujarat, India who has been a big lover all things Lumia for quite some time. And luckily for us, he’s here to tell us all about the magic behind his super photos — what he loves about his Lumia, what inspired him to create his photos, how he does it, and how you can do it too.

They are clever photos (though lots of post-editing is needed; it would be nice if some were clever trompes l’oeil). Also, “amazingly surreal” photos? Either amazing or surreal. Not both.

Start up: Apple v Samsung, Microsoft + Cyanogen, how three bits can end your privacy, and more

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Microsoft to invest in rogue Android startup Cyanogen » WSJ

Rolfe Winkler and Shira Ovide say it’s going to be a minority investor in a $70m round:

Google has frustrated manufacturers in recent years by requiring them to feature Google apps and set Google search as the default for users, in exchange for access to the search engine, YouTube, or the millions of apps in its Play Store.

Such restrictions make it harder for apps that compete with Google’s to win distribution on Android devices. For Microsoft, that means less exposure for its Bing search engine, which is up against Google search. It also could limit growth of other Microsoft software products.

Cyanogen offers an alternate version of the Android mobile operating system free of such restrictions. The 80-person company claims to have a volunteer army of 9,000 software developers working on its own version of Android.

“We’re going to take Android away from Google,” said Kirt McMaster, Cyanogen’s chief executive, in a brief interview last week. The next day, at an industry event sponsored by tech news service The Information, McMaster said Cyanogen had raised $100 million to date. Previously the company had disclosed that it raised $30 million of funding. The company spokeswoman declined to make McMaster available for this story.

McMaster said more than 50 million people use a version of the Cyanogen Android operating system, most of whom have installed it in place of their phone’s initial operating system.

Nokia X didn’t do it; might Cyanogen be the route for Microsoft to get its services onto AOSP?

Unique in the shopping mall: On the reidentifiability of credit card metadata » Science

Science magazine has a special this week on data and privacy. Here, it looks at how many data points are needed to identify someone uniquely:

To provide a quantitative assessment of the likelihood of identification from financial data, we used a data set D of 3 months of credit card transactions for 1.1 million users in 10,000 shops in an Organisation for Economic Co-operation and Development country (Fig. 1). The data set was simply anonymized, which means that it did not contain any names, account numbers, or obvious identifiers. Each transaction was time-stamped with a resolution of 1 day and associated with one shop. Shops are distributed throughout the country, and the number of shops in a district scales with population density (r2 = 0.51, P < 0.001) (fig. S1).

How many data points for identification? Three.

In a near tie, Apple closes the gap on Samsung in the fourth quarter as worldwide smartphone shipments top 1.3bn for 2014 » IDC

Ryan Reith:

“First, at a time when average selling prices (ASPs) for smartphone are rapidly declining, Apple managed to increase its reported ASPs in the fourth quarter due to higher-cost new models. Second, the growth of iPhone sales in both the U.S., which is considered a saturated market, and China, which presents the dual challenges of strong local competitors and serious price sensitivity, were remarkable. Sustaining this growth and higher ASPs a year from now could prove challenging, but right now there is no question that Apple is leading the way.”

In 2013 IDC talked about the smartphone industry topping the 1 billion unit milestone, and while year-over-year growth did slow from 40.5% in 2013 to 27.6% in 2014, the market clearly still has legs. This past year volumes surpassed 1.3 billion units and the vendor scenario has witnessed continued shakeups. Growth is forecast to decline to the mid-teens in 2015, but opportunity exists as much of the world’s population is either not a wireless subscriber or has yet to move to a smartphone.

“That the worldwide smartphone market grew by 27.6% in 2014 is noteworthy, but it also represents a significant slowdown compared to 2013,” said Ramon Llamas, Research Manager with IDC’s Mobile Phone team. “Mature markets have become increasingly dependent on replacement purchases rather than first-time buyers, which has contributed to slower growth. In emerging markets, first-time buyers continue to provide a lot of market momentum, but the focus has shifted toward low-cost devices, creating a different dynamic for both global and local vendors.

IDC reckons Apple was 0.6m behind Samsung. Strategy Analytics reckons Samsung was ahead. Counterpoint reckons Apple was ahead. Samsung, in its results call, said it sold (maybe “shipped”) 95m handsets (including featurephones) in Q4, of which “71m to 76m” were smartphones.

You have to love the intentional inaccuracy in Samsung’s statement. It knows how many it shipped.

Samsung’s mobile profits plunge 64.2% after Apple’s iPhone 6 devastates premium Galaxy sales » Apple Insider

Yeah yeah, but this is one of the more interesting points:

Apple’s overall operating profits for the quarter were $24.2bn, up 36.9% over the year-ago quarter. That means Samsung Mobile is now earning less than 7.5% of Apple’s profits while still shipping more phone units.

Apple’s net (after tax) profits were $18bn for the quarter, provisioning $6.4 billion for tax payments. Samsung reported just $230m in income taxes, an effective tax rate of 4.5%.

Apple’s effective tax rate is 26.4%.

Strange, especially given Apple’s tax shenanigans (profits earned abroad sit in an American company offshore in Ireland: the US won’t tax them because they’re offshore, the Irish won’t tax them because they’re American) that Samsung is able to go so much lower.

Never trust a corporation to do a library’s job » Medium

Andy Baio:

Two months ago, Larry Page said the company’s outgrown its 14-year-old mission statement. Its ambitions have grown, and its priorities have shifted.

Google in 2015 is focused on the present and future. Its social and mobile efforts, experiments with robotics and artificial intelligence, self-driving vehicles and fiberoptics.

As it turns out, organizing the world’s information isn’t always profitable. Projects that preserve the past for the public good aren’t really a big profit center. Old Google knew that, but didn’t seem to care.

The desire to preserve the past died along with 20% time, Google Labs, and the spirit of haphazard experimentation.

Google may have dropped the ball on the past, but fortunately, someone was there to pick it up.

The Internet Archive stands at least alongside Wikipedia (and perhaps ahead of it?) as one of the great efforts of the internet.

Visa Europe to spend €200m on digital payment technologies » Finextra

Nicolas Huss, chief executive officer of Visa Europe, bills 2015 as a defining year for digital payments.

“We will further eat away at the 70% of transactions that are still settled in cash in Europe,” he says. “We will make use of the abundance of digital technology that now surrounds us to enable new digital payment solutions. And, most importantly, we will deliver an even better quality of service to retailers and consumers alike by making payment simpler, smarter and more secure than ever before.”

One could interpret that to mean that Visa is going to be a partner with Apple in introducing ApplePay in Europe in 2015.

Huawei to focus on higher-end smartphones » WSJ

“If we sold more low-end phones, we could even double our shipments…but in the low-end market there is no margin,” said Richard Yu, who heads Huawei’s consumer business group, at a briefing at the company’s headquarters in Shenzhen Tuesday.

Huawei expects more than 30% of its consumer devices shipped this year will be priced above 2,000 yuan ($320), up from 18% last year.

Competition in the global smartphone market is intensifying and while Apple Inc. dominates the high-end segment globally, most vendors selling smartphones that use Google Inc.’s Android operating system are struggling to set themselves apart from rivals.

Mr. Yu said most low-cost vendors from China will likely disappear in three to five years because their business models aren’t sustainable. “There are too many brands in this industry,” he said.

Huawei is developing a habit of telling it like it is. Recall that it said there was no money to be made selling Windows Phone either.

Qualcomm falls 9% on China competition, implies lost Samsung business » Barrons.com

Qualcomm implied its chip has, indeed, missed the initial shipments of Samsung’s “Galaxy S6” flagship phone, expected out next month, which has been rumored in the last couple of weeks, without Qualcomm actually mentioning Samsung:

A shift in share among OEMs at the premium tier, which has reduced our near-term opportunity for sales of our integrated Snapdragon™ processors and has skewed our product mix towards more modem chipsets in this tier; Expectations that our Snapdragon 810 processor will not be in the upcoming design cycle of a large customer’s flagship device; and Heightened competition in China.

It feels – taken together with Samsung’s results – as though Samsung is aiming to use its own Exynos processors, in order to get the maximum use (and so profit) from its chip factories; if LG can get the 810 into a phone without trouble, as seems to be the case, Samsung probably can.

The other Chinese competition is principally from TSMC and Mediatek.

At least 30% of China-based white-box tablet vendors exit market, says report » Digitimes

As the average gross margin for China-based white-box tablet vendors/makers dropped below 5% in 2014, at least 30% of them have withdrawn from the market and shifted production to mobile power supplies, driving recorders and mobile device accessories, according to China-based National Business Daily (NBD).

White-box tablet production is concentrated in Shenzhen, southern China, and retail prices for such tablets mostly range from CNY299 (US$48.4) to CNY399, NBD said.

That’s pretty thin pickings, but suggests the low end of the market is getting cleared out.

One week of harassment on Twitter » Feminist Frequency

Anita Sarkeesian:

Ever since I began my Tropes vs Women in Video Games project, two and a half years ago, I’ve been harassed on a daily basis by irate gamers angry at my critiques of sexism in video games. It can sometimes be difficult to effectively communicate just how bad this sustained intimidation campaign really is. So I’ve taken the liberty of collecting a week’s worth of hateful messages sent to me on Twitter. The following tweets were directed at my @femfreq account between 1/20/15 and 1/26/15.

I’d really like to see an analysis that looks at when the abusive accounts were created, and what sort of use they are put to if they aren’t being abusive. There are two competing hypotheses: one, that it’s the work of a small and super-determined coterie who create abusive accounts; two, that it’s a large group of real people who are all just jerks. Hard to figure out which would be worse.

Start up: Android bloatware, did vinyl really sell?, Samsung shakes up, and more

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Carriers can now install apps on Android handsets without customers’ permission >> Forbes

Matt Hickey:

The fact that bloatware was a notorious failure doesn’t mean that everyone’s been paying attention, of course. A company called Digital Turbine has a new service – called Ignite — for Android handsets that allows a carrier to install apps on customers’ smartphones “for more advertising revenue” whenever it wishes. In other words, carriers can now push garbage apps onto their users handsets to make a few bucks here and there whether the user wants it or not, and it seems as if the practice is perfectly legal.

Digital Turbine claims Verizon and T-Mobile as customers (among others), but that doesn’t necessarily mean that those carriers are currently using the service to push apps, but it does mean that they could if they wished. That said, some users have as recently as this week claimed that they were pushed updates called “DT_Ignite” for “performance enhancements”. The update apparently asks for permission to access almost any part of the phone’s system, making it not just annoying but also potentially dangerous.

So it’s not quite “without permission”, but it’s certainly “without transparency”. Users who noticed it find it annoying.

Google Glass deal thrusts Intel deeper into wearable devices >> WSJ

An Intel chip will replace a processor from Texas Instruments Inc. included in the first version of Glass, the people said.

Intel plans to promote Glass to companies such as hospital networks and manufacturers, while developing new workplace uses for the device, according to one of the people.

Google launched the Internet-connected eyewear in 2012 as a consumer gadget, but it was criticized by privacy advocates and widely regarded as nerdy. But Glass shows early signs of catching on as a workplace-computing device.

Through a program it calls Glass at Work, Google is working with software developers including Augmedix Inc. and APX Labs LLC to encourage use of Glass in industries such as health care, construction and manufacturing where employees work with their hands but need information.

Smart; no doubt Intel will subsidise it, as part of its desperate ongoing efforts to get into mobile. However Google still seems to think consumers will want Glass: 300 staff work on Glass, but only 5% (that’s 15) focus on “Glass at Work”.

Huawei Technologies has big plans, faces big questions >> The Seattle Times

One area Huawei is unlikely to return to, unless the market changes: Windows Phone.

Huawei produced two models running Microsoft’s smartphone OS before it said it was putting its plans for future Windows Phones on hold.

“We didn’t make any money in Windows Phone,” Kelly said. “Nobody made any money in Windows Phone.”

Huawei is also facing stiff competition in the smartphone market from Beijing-based Xiaomi, which in the third quarter of this year bypassed Huawei to become the world’s third biggest smartphone vendor, according to IDC.

Xiaomi, founded just four years ago, has ascended quickly due mainly to a strategy of offering high-end features for low prices, resulting in high-volume sales figures, especially in its home country.

Huawei says it isn’t looking to compete in the low-margin arena, and is instead concentrating on high-end phones.

“We will lose volume in that shift,” Kelly acknowledged.

Why Eric Schmidt doesn’t know how Google works >> VentureBeat

Darius Lahoutifard is an entrepreneur with a withering critique of Schmidt and Jonathan Rosenberg’s new book “How Google Works”:

the authors are confusing causation and correlation. Schmidt points out a series of characteristics of Google as a company and presents them as the reasons for Google’s success, but in my opinion, they are all consequences of Google’s success.

For example the authors write: “Their plan for creating that great search engine, and all the other great services was equally simple: Hire as many talented software engineers as possible, and give them freedom.” Well, this worked because the search was already successful enough to fund that freedom. I would love to see one single company that isn’t dominating a market with no cash cow in-flow that can succeed without strict discipline, sharp focus, hard work, and hands-on management.

If this management style is the reason for Google’s success, then why have the majority of initiatives at Google either failed or been financially inefficient and unprofitable? If they were standalone startups, they would have most likely already been dead.

Another special characteristic of Google is its sales force. When interacting with sales people at Google, I am shocked to see how untrained and inefficient they are.

No punches pulled. At all. (Google was very, very focussed as a startup. The post-IPO moonshot stuff has been a bit hit-and-miss. Well, miss, apart from Android and Maps.)

Small Data: Is lots of vinyl being sold? >> BBC News

Anthony Reuben:

This year is the first time that more than a million vinyl albums have been sold [in the UK] since 1996. This was based on Official Charts data released by the British Phonographic Industry (BPI), going back to 1994, which was when they started keeping count.

There was nothing particularly wrong with the figures, except that 1994 is quite a bad year to start looking at vinyl, as the graph above shows.

Look at the graph, and you suddenly realise what a non-story this was.

Samsung mobile chief survives shakeup >> Korea Times

“We expect the mobile business will get better under Shin’s leadership,” Lee Joon, head of communications at Samsung’s Future Strategy Office, told reporters in a briefing.
He explained its critical consumer electronics business affiliate had no option but to pursue “stability” rather than radical changes as Chairman Lee, who makes key decisions, was still recuperating.

Now, Samsung is seeing a transition of power to Samsung Electronics Vice Chairman Lee Jae-yong.

“When the junior Lee takes over completely, then Samsung will see real changes in management,” said a senior executive at a components affiliate by telephone.

Samsung Electronics only promoted three presidents, the lowest number since 2008.

“This year, the performance of Samsung Electronics and other affiliates wasn’t that good,” Lee Joon said.

Is Uber’s rider database a sitting duck for hackers? >> The Washington Post

A person who had a job interview in Uber’s Washington office in 2013 said he got the kind of access enjoyed by actual employees for an entire day, even for several hours after the job interview ended. He happily crawled through the database looking up the records of people he knew – including a family member of a prominent politician – before the seemingly magical power disappeared.

“What an Uber employee would have is everything, complete,” said this person, who spoke on the condition of anonymity for fear of retribution from the company.

A more sophisticated – and malicious – person with that access could have scraped data on a massive scale, then used powerful analytical software to learn things that Uber users might want to keep private, for professional or personal reasons.

So for once, the headline doesn’t conform to Betteridge’s Law.

Rohinni produces the ‘world’s thinnest’ LED lights using 3D printing, and it adds light anywhere >> 3ders.org

The paper-thin Lightpaper is made by mixing ink and tiny LEDs together and then printing the mixture out on a conductive layer. This layer is then sealed between two additional layers. The tiny diodes are about the size of a red blood cell. When a current runs through the paper, the tiny, randomly-dispersed diodes will light up.

Rohinni’s LightPaper is much thinner than current lighting technology OLED, which has been used in flat screen televisions and allowed TV screens thinner than tenth of an inch to be manufactured. But it seems that the company is more interested in using LightPaper in the automotive industry, as a new means for make excellent taillights, or branding.

Its application potential was endless, said Nick Smoot, chief marketing officer. He said they were thinking about printing lamp shades, so lamps would not need light bulbs. “Anywhere there is a light, this could replace that.” He also said that eventually people will be able to print their own at home. “You will be able to design and print you own light,” he said. “Right now we are printing the light, but we are going to be putting that back in the hands of the people.”

An easily repairable and upgradeable mobile phone >> Puzzlephone

Another modular smartphone, like the Google Ara, but more limited: you can replace the battery, screen and OS. (It’s not clear what else.) Designed and built in Finland, and aims to start shipping in 2015.

Steve Jobs’ testimony expected to play major role in iPod antitrust lawsuit >> Mac Rumors

The complaint focuses on Apple’s older iPod models, which only supported music purchased on iTunes and songs downloaded from CDs. Also being disputed is Apple’s FairPlay system of encoding purchased music, which limited music playback to the iPod and not competing MP3 players. In the suit, consumers claim Apple violated antitrust law by deliberately limiting interoperability with competitors, while exclusively promoting its products and services.

The email testimony is expected to paint Steve Jobs as an aggressive businessman who worked hard to ensure the success of the iPod and iTunes. This success often came at the expense of smaller competitors, which were not allowed to connect to Apple’s popular iPod ecosystem. In one already released email, Jobs addresses Apple’s lack of support for the-then upcoming MusicMatch music store.

“We need to make sure that when Music Match launches their download music store they cannot use iPod,” he wrote. “Is this going to be an issue?”

This relates to 2004 and 2005. Apple will argue that the purpose was to improve the platform for the consumer. (Side note: in January 2013 the US FTC decided that Google’s manipulation of search results to the disfavour of competitors was not an antitrust matter, because it benefited consumers.)