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


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

What? Sign up to receive each day’s Start Up post by email? It’s madness, I tell you, madness.

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

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

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

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

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

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

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

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

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

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

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

Neat scoop by Tim Culpan:

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

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

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

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

Ron Amadeo:

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

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

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

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

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

Ana Swanson:

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

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

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

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

Chris Lacy:

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

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

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

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

Robert McMillan:

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

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

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

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

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

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

Matt Pearce:

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

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

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

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

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

Rob Schmitz:

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

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

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

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

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

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

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

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

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

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

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

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

Start up: a huge new Android security risk, Google+ downgraded, iTunes’s giant mess, and more


It was 20 years ago (roughly) that a Rolling Stones song launched Windows 95. Photo by michfiel on Flickr.

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

Making free work (hint: cannibalize radio, not sales) » Music Industry Blog

Mark Mulligan:

Neither Spotify or Deezer is in the business of free music, they are in the business of subscriptions and simply use free as a marketing tool. So they have no reason to cling doggedly to free users that show no sign of converting. Instead after a sufficient period of free music has been offered users should be pushed to subscriptions or onto a radio tier (see figure). There is no business benefit to the streaming services nor rights holders to have perpetual on demand free users.

The assumption that free music is some sort of internet right is symptomatic of the internet’s growing pains. In terms of market development we’re probably at the adolescence stage of the internet, the stage at which carefree childhood starts to be replaced by responsibility and consequences. We’re seeing this happen right across the internet economy, from privacy, data, free speech, jurisdiction etc. Because music has been free online for so long consumers have learned to accept it as fact. That assumption will not be changed any time soon, and try to force the issue too quickly and illegal services will prosper.

Of course YouTube is, and always has been the elephant in the room, buoyed by the schizophrenic attitude of record labels who simultaneously question its impact on the market while continuing to use it as their number 1 digital promotional channel. While the tide may finally be beginning to turn, don’t expect YouTube to go anywhere any time soon. But should the screws tighten do expect YouTube to stop playing ball.

Apple Music, of course, chucks you out after your three-month trial unless you subscribe. Let’s see how it does for conversion.
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Continuum on Windows 10 » Blogging Windows

Windows 10 adjusts your experience for your activity, device and display, so you can do your thing in any mode anytime you want. Onscreen features, like menus and taskbars, adapt for easy navigation. Apps are built to scale smoothly from screen to screen so they look good from the smallest app window up to the largest 8k displays*.

That’s gr– hey, what’s the asterisk?

“*App experiences may vary.”

Oh. (Via Wes Miller.)
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Start Me Up (again) » GartenBlog

Windows 10 will arrive, without fanfare, on computers tomorrow (July 29th). In August 1995, Windows 95 was launched with the Rolling Stones’ “Start Me Up” as its theme song. Michael Gartenberg recounts Microsoft’s Brad Stone talking about the negotiations with the band:

For a good month we continued negotiations mostly on the phone. I had only so much I would and could pay and that made things easier on our end. The fact that we had to fish or cut bait to get our TV ads done in time for the August 24th launch served as a forcing function and eventually we agreed to terms. They rushed WK the “Start Me Up” recording as we were already working on the ad. The next day I got a frantic call from WK saying that the Stones had sent a later live version of “Start Me Up” that wouldn’t work. I called up Cohl and told him that I had to have the original version or there was no deal. Eventually they agreed. I found out later that the reason they gave us the live version was that it was recorded after Bill Wyman had left the band. Giving us the original meant that Wyman got his allocation of the deal which of course meant that giving us the original version of “Start Me Up” meant that Jagger, Richards and the rest of the band got less.

I also found out later that Jagger and Richards did not always see eye to eye on the deal. As Brad indicated, Jagger was less inclined to commercialize their music in this way. I was told he was especially ready to just forget the deal when we made it clear we needed the original version but that he did not want to piss off Richards over it because Richards wanted or needed the money.

One British paper (not me) suggested Microsoft paid $14m. “We paid a fraction of this”, Stone writes.
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Dmail makes your Gmail messages self-destruct » TechCrunch

Sarah Perez:

The product works by way of a Google Chrome web browser extension, which only you, as the email sender, have to install.

Once loaded, you’ll have a new option within the Gmail “compose” interface that allows you to turn the Dmail service off and on using a toggle switch. When on, you can specify ahead of sending an email if you want the email destroyed in an hour, a day, a week, or “never.” Even if you choose the “never” option, you can later go into your sent message and click a “Revoke Email” button to remove access to that email from all recipients.

What’s clever about Dmail is that, unlike some other secure messaging products, recipients don’t have to use the service themselves in order for it to work. If they don’t have the extension installed, they’ll instead receive an email that states: “This secure message was sent using Dmail. To view this message, simply click the button below.” 

Clicking the included “View Message” button will then redirect them to a web view where they can read your email.

More accurate headline: Dmail makes your Gmail messages into shareable web pages whose access you control. These attempts to reinvent email are doomed to failure.
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Canon cuts outlook as weak camera sales hit second-quarter profit » Reuters

Ritsuko Ando:

Japan’s Canon Inc cut its earnings outlook for the full year and reported a 16% fall in quarterly profit as consumers, increasingly in the habit of taking photos with their smartphones, bought fewer compact digital cameras.

The world’s largest camera maker said on Monday its second-quarter net profit fell to 68bn yen ($552m) compared with 81bn yen a year earlier. Analysts on average expected 65bn yen, according to Thomson Reuters data.

The firm said it now expects full-year profit of 245bn yen rather than the 255bn it forecast three months ago.

Wait and see what they forecast in another quarter. This is a trend that will only continue.
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The hidden opportunity of corporate smartphones » Tech.pinions

Bob O’Donnell:

Many of the IT professionals who are making or strongly influencing these purchases also have a soft spot for Windows and this preference clearly shows up in survey results. Though it’s well known the percentage of consumers actively using Windows Phones is small, what isn’t well known is a surprisingly large percentage of companies (over 40% in several different surveys) have employees who use devices running Microsoft’s mobile OS. In fact, in a TECHnalysis Research survey of US healthcare companies, 17% of work smartphones in their organizations were running Windows Phone. This goes a long way towards explaining Microsoft’s recent comments about focusing their future smartphone development towards enterprise as a key target. They actually have a solid opportunity there.

Goes to show how little influence IT professionals have in the new mobile world order, if you ask me. A reminder: about 80m Windows Phones are being used worldwide; in the US it’s in the low single-digit millions. That might be a gigantic corporate usage. Or it might be a small corporate usage and a small corporate usage.
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Major flaw in Android phones would let hackers in with just a text » All Tech Considered : NPR

Aarti Shamani:

In this attack, the target would not need to goof up — open an attachment or download a file that’s corrupt. The malicious code would take over instantly, the moment you receive a text message.

“This happens even before the sound that you’ve received a message has even occurred,” says Joshua Drake, security researcher with Zimperium and co-author of Android Hacker’s Handbook. “That’s what makes it so dangerous. [It] could be absolutely silent. You may not even see anything.”

Here’s how the attack would work: The bad guy creates a short video, hides the malware inside it and texts it to your number. As soon as it’s received by the phone, Drake says, “it does its initial processing, which triggers the vulnerability.”

The messaging app Hangouts instantly processes videos, to keep them ready in the phone’s gallery. That way the user doesn’t have to waste time looking. But, Drake says, this setup invites the malware right in.

If you’re using the phone’s default messaging app, he explains, it’s “a tiny bit less dangerous.” You would have to view the text message before it processes the attachment. But, to be clear, “it does not require in either case for the targeted user to have to play back the media at all,” Drake says.

Gives attackers system privileges. Proportion of Android devices vulnerable: 95%. Google has pushed out an update to hardware makers. But have the hardware makers pushed the update out? Google reckons that if 50% of devices get it, that will be good.

The big risk is that someone will create a Blaster-style worm that attacks a phone and then accesses its phone book to send malicious MMSs to the numbers in the phone book.
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Don’t order the fish » Marco.org

Marco Arment:

With the introduction of Apple Music, Apple confusingly introduced a confusing service backed by the iTunes Store that’s confusingly integrated into iTunes and the iOS Music app (don’t even get me started on that) and partially, maybe, mostly replaces the also very confusing and historically unreliable iTunes Match.

So iTunes is a toxic hellstew of technical cruft and a toxic hellstew of UI design, in the middle of a transition between two partly redundant cloud services, both of which are confusing and vague to most people about which songs of theirs are in the cloud, which are safe to delete, and which ones they actually have.

iTunes has Microsoft’s problem: supporting a gigantic range of legacy hardware in the form of millions of iPods and iPhones.
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Everything in its right place » Official Google Blog

Bradley Horowitz, VP of “Streams, Photos and Sharing”:

People have told us that accessing all of their Google stuff with one account makes life a whole lot easier. But we’ve also heard that it doesn’t make sense for your Google+ profile to be your identity in all the other Google products you use.

So in the coming months, a Google Account will be all you’ll need to share content, communicate with contacts, create a YouTube channel and more, all across Google. YouTube will be one of the first products to make this change, and you can learn more on their blog. As always, your underlying Google Account won’t be searchable or followable, unlike public Google+ profiles. And for people who already created Google+ profiles but don’t plan to use Google+ itself, we’ll offer better options for managing and removing those public profiles.

You’ll see these changes roll out in stages over several months. While they won’t happen overnight, they’re right for Google’s users—both the people who are on Google+ every single day, and the people who aren’t.

On that YouTube blogpost:

The comments you make on YouTube will now appear only on YouTube, not also on Google+. And vice-versa. This starts rolling out today.

Google+ is no longer obligatory. Slightly too soon to call it dead. But it will never grow big. And we’ll never hear those faintly bogus stats about “user sharing” or inflated claims of users.
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