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It’s dark out there: the Q1 2016 smartphone scorecard

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It’s all a bit murky in the smartphone market right now. Photo by Moyan_Brenn on Flickr.

The arrival of 2016, and the dramatic slowdown in the smartphone market in the US and China, is putting brand new pressures on the bigger players, though more noticeably on the smaller ones.

Inasmuch as nobody who isn’t Samsung, Apple or (I think) Huawei is making money at scale from smartphones. All of the “small big” players such as LG, Sony, Lenovo/Motorola, HTC, and – I’m fairly certain – Xiaomi are losing money. Of the first four named above, their collective loss on smartphones in Q1 2016 was $850m (all prices are given in US$ throughout); and for Xiaomi, which sold fewer than in the same period in 2015, at an ASP (average selling price) below everyone else including Lenovo/Motorola, it’s hard to see that it could have scraped a profit.

Not only that, but Apple finally came under pressure: both its smartphone shipments fell (despite a fair bit of inventory stuffing) and so did its ASP, from over $690 in the fourth quarter to just over $640 in this one, the lowest value since it introduced the larger-screened 6 series phones in September 2014.

Samsung meanwhile sailed along, pushing almost as many phones out of the door and seeing only mild erosion year-on-year of ASPs. Notably, Samsung’s profits were their highest since the second quarter of 2014 – helped, surely, by the decision to push the Galaxy S6 flagship out before the quarter ended.

So first the numbers.

Q1 2016: the smartphone scorecard

* denotes estimate: explanations below
Company Handsets
(million)		 Revenues Handset
ASP		 Operating
profit		 Per-handset
profit
Samsung 81.9 $24.25bn $242.48* $3.5bn $42.75*
Apple 51.2 $32.86bn $641.83 $9.17bn* $179.06*
Huawei 27.5 $5.72bn $208 positive? positive?
LG 13.5 $2.67bn $197.57 –$224.64m –$16.64
Lenovo/Motorola 11 $1.74bn $159.36 –$105m –$9.55
Sony 3.4 $3.64bn $473.32 –$372.2m –$109.47
HTC 2.5* $0.46bn $182.80* –$148m –$59.20*
Microsoft
Mobile		 2.3 $0.50bn* $217.20* –$154m* –$67*

Assumptions:
Samsung: featurephones (estimated 18.1m of them) sold for $15, made a profit of $0 each. If their ASP is higher, the ASP of the smartphones is lower; if their profit is higher, the per-handset profit for smartphones is lower. For tablets, the assumption is the 6m shipped had an ASP of $200, and show zero profit. If they sell for a higher price, phone ASPs are lower; if they make a profit, per-handset profit is lower.

Apple: profit margin per handset of 28%. This is a longstanding historical figure worked by analysts better at this stuff than me. It will actually vary by quarter, depending on phone mix, how new the phones are, and storage (more storage = better profit margin). But this is a usable rule of thumb.

LG: sells no appreciable number of tablets, and doesn’t make a profit or loss on them. (In Q1 2015 it shipped 1.4m tablets, which didn’t have an appreciable effect on anything.)

HTC: shipments had to be estimated based on its (woeful) revenues. I’ve said previously that I don’t think HTC will ever make a profit again in smartphones, and nothing I’m seeing makes me feel I was wrong.

Microsoft Mobile: featurephones (15.7m of them) had an ASP of $15, and made zero profit. Lower featurephone ASP would mean higher smartphone ASP. Any profit would mean more losses for smartphone handsets. Lots has to be assumed about Microsoft’s handset business, including gross margin (I assumed $50m on its $500m smartphone sales – possibly generous), and R+D costs and sales/general/administrative costs (assumed $50m and $75m respectively). The numbers still don’t work in its favour, even though a year ago those figures were over $500m together.

There’s one other notable Microsoft comment in its 10-Q: “Patent licensing revenue decreased 26%, due to a decline in licensed units and license revenue per unit.” That would be Android handsets paying a licence. Whether that’s due to Huawei rising and not having a patent deal isn’t clear. But it’s one to watch.

Discussion: gravitational pull

The takeaways from this only become clear once you look at the longer-term trends. Android OEMs losing money isn’t new, though Lenovo’s continuing inability to turn Motorola into a money-making (or “not money-losing”) proposition suggests that some things are eternal.

To do that, we have to graph what has happened since 4Q 2015 (the first quarter for which I began collecting this data.)

First though, the handset landscape – as in, how many handsets do these people shift? Best seen in graphical form, so you can get an idea of who’s rising, or falling, or what-the-helling.

Screenshot 2016 06 24 14 56 28

For phone ASPs, I’ll introduce a new measure – the “blended Android ASP”, which is the weighted average ASP, found by taking the available revenues for Android OEMs, and dividing by the total number of handsets shipped by those OEMs. Samsung tends to weigh heavily on this. I’ve included Xiaomi by assuming its ASP was $160 during 2015, falling to $157 in Q1, based on information from analysts. For Huawei, there’s no data except for Q1, when its ASP was $208.

Phone ASPs:

Screenshot 2016 06 24 14 31 15

This can be a little difficult to read, but you can see clear trends: Sony is the only company which is consistently raising its ASP. Even Apple is seeing a trend where it falls, while Microsoft in the past couple of quarters has done that. But for both, that has come at the cost of, well, profit.

Let’s see if when you compare the ASPs to the “blended” Android ASP, so you get an idea of how the prices change relative to the known ASPs. (This is not the ASP for all Android phones all over the world – for that you’d have to pay $$$$ for an analyst report from IDC or Gartner.)

Screenshot 2016 06 24 14 17 53

ASPs first: what’s pretty clear (and expected) is how far above the crowd Apple is; how Samsung’s figures tend to dominate the sector; how Sony’s are climbing; and how Xiaomi and Lenovo/Motorola are well below the crowd.

Sony has a strategy of raising ASPs in order to find profit somewhere, somehow, up there. Trouble is, it keeps not managing to. Microsoft ditto (perhaps). The problem they both have is that they’re selling fewer handsets over time, which makes profit harder to achieve because your fixed costs (overheads such as staff, administration, buildings etc) don’t shrink in the same way.

I’ve assumed that Xiaomi’s ASP was $160 throughout 2015; the figure for the first quarter of this year comes from IDC. That $160 figure makes sense: in June 2014, Bruce Einhorn at Bloomberg was comparing Huawei and Xiaomi (in a piece that seems prescient now) about Huawei’s insistence that it could be China’s top smartphone brand, and noted that

Huawei may not be able to compete with Xiaomi’s razzle-dazzle, but the Shenzhen-based Huawei has made big strides of its own in building its brand and making cool handsets. Last year it launched the Ascend PG, which Huawei said was the world’s slimmest smartphone, with a depth of just 0.24 inch (6.18 millimeters). In the first quarter of 2014, Huawei shipped 13.5 million smartphones, compared with Xiaomi’s 10 million, according to Bloomberg Industries. At $155.30, the average selling price for Huawei’s phones is slightly less than Xiaomi’s $159.60. And like Xiaomi, Huawei now sells most of its phones under its own brand. Three years ago, most of the handsets Huawei sold carried operators’ brands, with only 30% using Huawei’s own brand. Today, 95% of Huawei phones use the Huawei brand.

Note that Xiaomi’s ASP hasn’t shifted in those 18 months; by contrast, Huawei’s has rocketed, from that $155 to $208 now (according to IDC).

Profit: still mostly missing in action

For profit, the picture – unless you’re Apple or Samsung – remains unrelentingly grim. Although we don’t know how it looks for Huawei and Xiaomi.

For Huawei, its only known ASP (that I have; if anyone from IDC/Gartner wants to send more details, please do) is at a level where at best you’re breaking even. Given the colossal volume Huawei has managed in smartphones – it’s now the third biggest – it could have hit the economies of scale necessary to go past breakeven.

Xiaomi, meanwhile, is venture-funded, and selling at a very low ASP, and has seen sales go into reverse in the first quarter compared to the previous year. ASPs have followed. Even if you think that its model of selling online is clever, it’s hard to see that it would be making a profit. But we don’t know.

In the end: it looks dark

Looking at the handset shipment graphic, one would have to say that HTC, Sony and Microsoft are all heading towards the exit. They’re bigger than a lot of small players out there (OnePlus, Micromax, etc) but they’re trying to play on a global scale, and that’s very expensive. Even Lenovo, which is discarding Motorola parts as fast as it can, struggled in its home market of China and is now casting around for other places to sell.

LG seems to want to be in the game, but Xiaomi is challenging it, and Huawei has already overtaken it. All that is saving it is the fact that the smartphone business is part of a conglomerate that also makes air conditioners, washing machines, TVs and so on.

The really interesting one is Apple. Its ASP finally dropped – and by quite a bit. Its shipments fell – and again, by quite a bit (it only got where it is by stuffing the channel). Its per-handset profit dropped, in line with the ASP.

The question that keeps being asked is: how long can Apple stay above the fray? But the answer comes back, again and again: probably a lot longer than others can stay in the game.

Would you fund this?

If you were shown those graphics and asked who you’d like to be backing, it probably wouldn’t be Xiaomi; you’d want to be up there with Apple and Samsung, where the money is good and prices are high. But building a premium brand is the sort of thing that you wanted to start doing 30 years ago (at least).

I’ll admit I’m puzzled by the determination with which companies like Sony and LG and HTC stick to the smartphone business. If you’re losing money regularly, why do it? Perhaps it’s a fear of what comes afterwards – of the void beyond. Even BlackBerry is refusing to get out of the handset business, even though it barely generates gross margin on each handset (that is, hardly covers the costs of the actual device, never mind the sales/distribution/research process that gets it to someone).

Here in the UK we’re about to find out what #Brexit means; a leap into the void beyond. Maybe some smartphone makers are similarly worried about what happens if they stop making phones. Or it’s just too expensive to wind it all up, and safer to take small acceptable losses rather than big company-defining ones. (It’s the same approach that has seen once-big names in the PC business such as Toshiba simply rein in their distribution and manufacturing there.)

So maybe this is how the smartphone business ends for the companies which aren’t Apple and Samsung but which were early into the business: not with a bang, but a whimper.

Start up: the comments pit, Magic Leap v Google Glass, South Korea’s shocking history, sue Kanye!, and more

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Seems the EC is going to charge Google with antitrust violations over Android. Photo by Geoff Livingston on Flickr.

You can now receive each day’s Start Up post by email. Confirmation link first, so no spam.

A selection of 10 links for you. Just a little short of Avogadro’s number. I’m charlesarthur on Twitter. Observations and links welcome.

They called it ‘the worst job in the world’ – my life as a Guardian moderator » The Guardian

Marc Burrows was head of the Guardian’s comment moderation team for five years:

»Ultimately, the biggest problems in comment threads come down to “agenda trolls”: the people so convinced they are right that they ride into a conversation not to join it, but to rip it apart.

They are easy to spot: they are the users who will scream “LIAR!” when they mean, “I think you’re wrong”, the ones whose arguments never quite seem to match the comment they are addressing, who resort to insults and TALK IN CAPITALS. You can’t win against those people, because they never truly believe they have lost.

They are comment-thread poison – men’s rights activists who act as if articles about women’s issues are their gender’s single biggest problem, climate change deniers who will drag any conversation about energy policy into murky pseudo-science, and borderline racists for whom there is no issue that cannot be pinned on immigration (UK) or black people (US). It is often known as “whataboutery” and is a tactic designed to throw a conversation off course.

«

Burrows was terrific at his job (which obviously includes leaving comments alone as well as deleting them). This long piece points to the benefits of comments, which absolutely do exist, as well as – like here – the disbenefits, and the problems of making them add value to the article above.

I think it’s that which nobody has quite solved: how to make comments below an article add what’s above. Not only do you need intelligent commenters who want to add value, you need a way for that value to be recognised. It’s notable that the number of articles on the Guardian open for comments had reduced drastically in the past 18 months.
link to this extract

 

The Guardian eyes content blocking, while Eyeo pleads legitimacy with independent verification » The Drum

Ronan Shields:

»On the opening day of the week-long event, the IAB hosted a panel session entitled ‘Ad Blocking: A New Deal or a Modern Day Protection Racket?’ where representatives from the indsutry’s buy and sell-side, were joined by privacy and ad blocker advocates to debate the issue.

Tim Gentry, The Guardian’s global revenue director, told attendees the title had recently become “far more persistent” in its charge to counter the effect of ad blockers, and this strategy could eventually include blocking access to content if it detects a user has one installed on their browser.

“With a small section we’ve tried to be far more persistent, asking them to either whitelist us, pay to become a member, tell us you’re a subscriber, and with a small sub-sect of people we’ll start to block access to content,” he said.

“What we’ve seen is that up to two-thirds of ad blocker users are willing to whitelist us, because they want quality content,” added Gentry.

Guy Philipson, CEO, IAB, UK, also recounted how “six-or-seven” publishers were exploring the option of following a similar approach adopted by French and Swedish publishers to act in unison to request that users either whitelist them or switch off their ad blockers altogether, or else be refused access to content.

«

The incremental moves by the publishers here are like a chess game where they’re unsure of the strength of their opponent. Ask nicely? Block back? Offer alternatives? The problem is that no tactics works on more than a third, or fewer, of those who use adblockers. So who’s “winning”?
link to this extract

 

Canada’s competition watchdog drops probe into Google » Reuters

Alastair Sharp:

»Canada’s Competition Bureau said on Tuesday that it was dropping an investigation into Google after saying in 2013 that it suspected the company was abusing its dominant position in online search.

The watchdog said it had found evidence to support one of the allegations against Google but that the company had already made changes to remedy those concerns and agreed not to reintroduce anticompetitive clauses in its contracts.

The Bureau said it did not find sufficient evidence of a substantial lessening or prevention of competition in the market to support its other allegations against Google, now a unit of holding company Alphabet Inc.

«

That’s the good news. Now for the bad news…
link to this extract

 

Margrethe Vestager to charge Google Wednesday: sources » POLITICO

Nicholas Hirst and Chris Spillane:

»European Competition Commissioner Margrethe Vestager is expected to unveil formal antitrust charges Wednesday against Google’s Android mobile operating system, according to two people briefed on the timing.

Google expects the charges to drill down on its Android distribution agreements, according to one of the people, who requested anonymity because the company’s position isn’t yet public.

The Commission is concerned that some of Google’s terms and conditions unnecessarily restrict phonemakers, giving Google’s own apps — from search to Gmail to maps — an unfair advantage.

«

You could say “popcorn!” except that this will follow this pattern: (a) a charge sheet from the EC (b) a rebuttal blogpost from Google (c) complete silence for a year or more while nothing happens.
link to this extract

 

South Korea covered up mass abuse, killings of ‘vagrants’ » Associated Press

Kim Tong-Hyung and Foster Klug:

»Choi [Seung-woo] was one of thousands — the homeless, the drunk, but mostly children and the disabled — rounded up off the streets ahead of the 1988 Seoul Olympics, which the ruling dictators saw as international validation of South Korea’s arrival as a modern country. An Associated Press investigation shows that the abuse of these so-called vagrants at Brothers, the largest of dozens of such facilities, was much more vicious and widespread than previously known, based on hundreds of exclusive documents and dozens of interviews with officials and former inmates.

Yet nobody has been held accountable to date for the rapes and killings at the Brothers compound because of a cover-up orchestrated at the highest levels of government, the AP found. Two early attempts to investigate were suppressed by senior officials who went on to thrive in high-profile jobs; one remains a senior adviser to the current ruling party. Products made using slave labor at Brothers were sent to Europe, Japan and possibly beyond, and the family that owned the institution continued to run welfare facilities and schools until just two years ago.

Even as South Korea prepares for its second Olympics, in 2018, thousands of traumatized former inmates have still received no compensation, let alone public recognition or an apology. The few who now speak out want a new investigation.

«

The government opposes it on the grounds that the evidence is “too old”; an official said “there have been so many incidents since the Korean War.” Astonishing investigation, aided by still-extant government documents and living people.
link to this extract

 

Magic Leap: a new morning » YouTube

»Welcome to a new way to start your day. Shot directly through Magic Leap technology on April 8, 2016 without use of special effects or compositing.

«

I watched this, and immediately I thought “yup, I’ve seen that thing where notifications you’d rather deal with on your phone are shown to you floating in mid-air. What was it? Oh, I know…”
link to this extract

 

Project Glass: One day… » YouTube

You might remember this, released in April 2012.

»This is an early concept video that was made when Project Glass was just getting started. While a lot has changed since then, our motivation to get technology out of the way remains the same.

«

Anyway, if you do want to read about Magic Leap…
link to this extract

 

Five burning questions about Magic Leap after Wired’s huge profile » The Verge

Nilay Patel:

»Wired ran an enormous profile on mysterious AR startup Magic Leap today, written by legendary tech journalist Kevin Kelly. It’s incredible, and you should read it, if only because Kelly’s obvious love and enthusiasm for virtual and augmented reality is infectious and energizing.

But the piece also raises many, many more questions about Magic Leap than it answers — and given the extreme opacity that’s surrounded Magic Leap, that’s pretty notable. (To catch you up: Magic Leap is a secretive company that’s raised over a billion in funding from Silicon Valley giants like Google and Andreesen Horowitz, but it’s never given a public demo — most of what we know comes from fantastical pitch decks buried inside patent applications.)

So here are five burning questions about Magic Leap.

«

Patel raises excellent questions (along the lines of “how the hell does this thing works, then?”). Kelly’s article is breathless as ever, almost to the extent of parody. Patel’s questions are worth asking. (One also thinks: perhaps he’ll get the journalists on The Verge to ask similar searching questions when they do breathless pieces too.)
link to this extract

 

Man sues Kanye West, Tidal, over new album » Bloomberg

Anthony McCartney:

»The proposed class action lawsuit filed in U.S. District Court in San Francisco by Justin Baker-Rhett contends West fraudulently promised fans that his album, “The Life of Pablo,” would only be available on Tidal. The site charges users at least $9.99 a month, but West’s album has since been released for free on Apple Music and Spotify.

Millions of people flocked to Tidal in February because of West’s new album and the rapper’s promise of exclusivity, giving the struggling site a boost and also a trove of user information, the lawsuit states. Baker-Rhett is asking a judge to order Tidal to delete information collected on users who signed up for West’s album.

“Mr. West’s promise of exclusivity also had a grave impact on consumer privacy,” the lawsuit states, noting that users’ credit card information, music preferences and other personal information have been collected.

The lawsuit contends the value of new subscribers and their personal information could be as much as $84m for Tidal.

«

That claim by Kanye (who’s a shareholder in Tidal) that it would be Tidal-only was never credible. But of course everyone feigned belief.
link to this extract

 

Ears on with the LG G5’s Bang and Olufsen DAC » AndroidAuthority

Rob Triggs:

»For the listening test I donned my pair of AKG K550’s, a reasonably priced set of “reference” headphones with a 32 ohm input impedance and frequency range from 12Hz to 28KHz.

My impressions of both the regular LG G5’s audio output and the B&O DAC are very positive. The default G5 pumps out a mostly well balanced presentation with plenty of detail and clean sounding highs, although there’s not a huge amount of liveliness to them. The bass can be a little lacking in places, especially in punchier tracks, and, while certainly not narrow, the G5’s stereo output isn’t especially wide. We can attribute this to the handset’s mediocre crosstalk test result, which reveals some bleed between the left and right channels.

I struggled to make out any difference between my “Hi-Fi” files and their equivalent CD quality tracks, but those will a very keen ear will be able to pick up on some differences when listening to their compressed alternatives.

«

That middle paragraph could be about wine (“clean highs.. liveliness..”) or any other product where people pretend to themselves that they can distinguish indistinguishable things. 12Hz is far below hearing, while 28kHz is far above it.

The G5’s “Friends” idea might get some audiophiles to spring for it, but I don’t see it catching on.
link to this extract

 

Errata, corrigenda and ai no corrida: none notified.

Start up: who backs the FBI?, Google gets RCS, LG goes modular, Linux Mint backdoored, and more

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Does the American public back Apple or the FBI in the fight over encryption? Photo by IceNineJon on Flickr.

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A selection of 11 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

After Jibe Mobile buy, Google to provide carriers with Android RCS client » TechCrunch

Natasha Lomas is very unimpressed by Google’s announcement with carriers at MWC:

»at the time of the acquisition of [RCS app maker] Jibe [in September 2015], telecoms analyst Dean Bubley suggested Mountain View’s move was actually aimed at building its own Android-to-Android iMessage competitor — a theory he’s still not ruling out, so perhaps Google still has some hopes on that front.

Albeit, Bubley couches Google’s latest RCS pronouncement as “very lukewarm”, noting it has not specified the client will be on all Android devices, for example, even if what is clearly carrier-written PR talks about reaching “all Android devices” — which would encompasses an awful lot of hardware these days, from phones to smart TVs, to smartwatches and more. (We’ve asked Google for some clarity here and will update this post with any response).

A Google spokeswoman said: “Once deployed, the Universal RCS Client will come standard for all Android devices globally, providing a more consistent experience with more advanced features.”  To be clear, that’s ‘standard’ in the sense of OEMs and carriers being able to choose to install it — so not universal, not mandated by Google and thus most certainly fragmented. (Also on fragmentation the spokeswoman confirmed that currently the client only works on phones and tablets, so not all Android devices by any means.)

There’s also no clear timeframe on when Google will be delivering the RCS client. (The spokeswoman had no concrete commitments to impart here, saying only that Google is “planning to launch later this year”.) And, as noted above, without ubiquity it’s going to mean fragmentation keeps RCS-powered messaging apps from building the sought for mass messaging momentum via the platform.

«

Expectations that Google would introduce a sort of iMessage-like app across all Android devices via Google Play seem overblown. It’s also not very private.
link to this extract

 

October 2015: Android 6.0 re-implements mandatory storage encryption for new devices » Ars Technica

Andrew Cunningham in October 2015:

»Shortly after the announcement of iOS 8 in 2014, Google made headlines by saying that it would make full-device encryption mandatory for new Android devices running version 5.0. It then made more headlines several months later when we discovered that the company backed down, “strongly recommending” that Android device makers enable encryption but stopping short of actually requiring it.

Now Google has published an updated version of the Android Compatibility Definition Document (PDF) for Android 6.0, and it looks like mandatory encryption is back with a couple of exceptions. New devices that come with Marshmallow and have AES crypto performance above 50MiB-per-second need to support encryption of the private user data partition (/data) and the public data partition (/sdcard).

«

Still unclear which devices actually implement this. Is there a table or list anywhere?
link to this extract

 

More support for Justice Department than for Apple in dispute over unlocking iPhone » Pew Research Center

»As the standoff between the Department of Justice and Apple Inc. continues over an iPhone used by one of the suspects in the San Bernardino terrorist attacks, 51% say Apple should unlock the iPhone to assist the ongoing FBI investigation. Fewer Americans (38%) say Apple should not unlock the phone to ensure the security of its other users’ information; 11% do not offer an opinion on the question.

News about a federal court ordering Apple to unlock the suspect’s iPhone has registered widely with the public: 75% say they have heard either a lot (39%) or a little (36%) about the situation.

«

Survey of 1,002 adults, so statistically valid (as you’d expect from Pew). The FBI, as we knew, has chosen its fight carefully.
link to this extract

 

Hacker explains how he put “backdoor” in hundreds of Linux Mint downloads » ZDNet

Zack Whittaker:

»The surprise announcement of the hack was made Saturday by project leader Clement Lefebvre, who confirmed the news.

Lefebvre said in a blog post that only downloads from Saturday were compromised, and subsequently pulled the site offline to prevent further downloads.

The hacker responsible, who goes by the name “Peace,” told me in an encrypted chat on Sunday that a “few hundred” Linux Mint installs were under their control [for a botnet] – a significant portion of the thousand-plus downloads during the day.

But that’s only half of the story.

Peace also claimed to have stolen an entire copy of the site’s forum twice — one from January 28, and most recently February 18, two days before the hack was confirmed.

The hacker shared a portion of the forum dump, which we verified contains some personally identifiable information, such as email addresses, birthdates, profile pictures, as well as scrambled passwords.

Those passwords might not stay that way for much longer. The hacker said that some passwords have already been cracked, with more on the way. (It’s understood that the site used PHPass to hash the passwords, which can be cracked.)

«

These days I operate on the default assumption that any site into which I put personal information will get hacked eventually. On that basis I’m parsimonious with such information.

Backdoors in Linux, though – not good. (Mint is reckoned to be the third most popular distro.)
link to this extract

 

LG’s G5 is a radical reinvention of the flagship Android smartphone » The Verge

Vlad Savov on the “Friends” additions for the LG G5:

»A small key on the side of the phone pops open its lower section, which can be pulled out along with the battery, then the battery is fitted into the next module and that straps back into the phone. The whole process sounds finicky, but there’s nothing flimsy about the way LG has constructed either the phone, its battery, or the extras, so everything can be done quickly and forcefully. And yes, it really does feel like loading a fresh clip into your gun.

The first plug-in module is the LG Cam Plus, which offers an enlarged camera grip for single-handed photography and also contains extra battery power. This Friend is decorated with a physical shutter button, a dedicated video recording key, an LED indicator, and a very satisfying jog dial to control zoom on the G5. You’re still using the two cameras built into the phone itself, but this extra part essentially reshapes the device and gives it extra juice to keep going for 6 to 8 hours longer, expanding the battery from 2,800mAh to 4,000mAh.

The LG Hi-Fi Plus is an external 32-bit DAC and amplifier combo unit, tuned in collaboration with Bang & Olufsen. It supports native DSD playback and will come with a pair of H3 B&O Play earphones. Unlike the Cam Plus, this module doesn’t really affect the shape or ergonomics of the G5. It just makes it a little longer and breaks up its color synchronicity (the Hi-Fi Plus is a matte black, whereas the phones vary between silver, gold, pink, and a graphite shade that LG calls “titan”). Importantly, the Hi-Fi Plus will process and upsample content from any app producing sound on the phone, including YouTube clips.

Also making their debut today are the LG 360 Cam and LG 360 VR headset. The camera is a dual-sensor spherical camera that captures either 16-megapixel stills or up to 2K video and will have immediate support from YouTube 360 and Google Street View.

«

And there’s even a VR headset. Price? “Reasonable,” according to LG, not giving a price. I’m unsure that “Friends” will get enough traction unless they’re available on all LG’s smartphones – but in that case, why would you buy the G5? Modularity in the handset kills premium pricing even faster than OS modularity.
link to this extract

 

Smartphone ownership and internet usage continues to climb in emerging economies » Pew Research Center

»For smartphone ownership, the digital divide between less advanced economies and developed economies is 31 points in 2015. But smartphone ownership rates in emerging and developing nations are rising at an extraordinary rate, climbing from a median of 21% in 2013 to 37% in 2015. And overwhelming majorities in almost every nation surveyed report owning some form of mobile device, even if they are not considered “smartphones.”

«

link to this extract

 

Telegraph suspends comment on relaunched online content » The Guardian

Mark Sweney:

»The Telegraph has suspended online comment on stories and features “until further notice” as part of a review of the way the newspaper engages with its audience.

As part of the relaunch of Telegraph.co.uk, the company is also researching whether to reinstate the facility. The print edition of the newspaper has recently been given a new look.

The roll-out of the new-look site is being done in stages with travel, TV, lifestyle and technology sections already live, but with comments turned off. The parts of the site that have not yet been included in the redesign still allow comments.

A spokesman for the Telegraph said: “In the process of migrating its site to a new online platform, the Telegraph has suspended the comment function in some areas under transition until further notice.

“It’s also undertaking research to understand the best way to support reader engagement, but in the meantime they can continue to comment on and share articles through Telegraph Facebook pages, or via Twitter, in the usual way.”

«

“In the usual way”? Anyway; another one onto the list. I should be totting these up.
link to this extract

 

In search of a business model: the future of journalism in an age of social media and dramatic declines in print revenue » Shorenstein Center

»Nicco Mele [former deputy publisher of the Los Angeles Times] described a deepening crisis in the newspaper industry: although some outlets are seeing the largest online audiences they have ever had, revenue is still shrinking. On a local level, preprint advertising (e.g. coupons) has seen a steep decline as retailers like Wal-Mart and Best Buy face challenges of their own. Paradoxically, print advertising still generates the vast majority of newspaper revenue – an undesirable situation, given the cost of printing.

“If the next three years look like the last three years, I think we’re going to look at the 50 largest metropolitan papers in the country and expect somewhere between a third to a half of them to go out of business,” said Mele.

Mele noted that newer entrants such as Buzzfeed, Vox and Vice rely in large part on venture capital. “None of them are yet true public companies with a clear sense of what their revenue equation looks like,” he said.

And although philanthropic and government funding could be options, Mele stressed the importance of news outlets remaining economically independent from large institutions to better fulfill their duty of holding power accountable.

What is clear is that diversity in revenue streams will be an essential part of the future, said Mele, and part of the mix could include two effective but “underappreciated” options: subscription revenue and native content.

«

The point about Buzzfeed, Vice and Vox is pretty keen: they’re still amped up on the sugar of VC money.
link to this extract

 

A skeleton key of unknown strength » Dan Kaminsky’s Blog

Kaminsky is a security researcher of some renown; here is his take on the bug in glibc, a very widely used C library:

»Patch this bug.  You’ll have to reboot your servers.  It will be somewhat disruptive.  Patch this bug now, before the cache traversing attacks are discovered, because even the on-path attacks are concerning enough.  Patch.  And if patching is not a thing you know how to do, automatic patching needs to be something you demand from the infrastructure you deploy on your network.  If it might not be safe in six months, why are you paying for it today?

It’s important to realize that while this bug was just discovered, it’s not actually new.  CVE-2015-7547 has been around for eight years.  Literally, six weeks before I unveiled my own grand fix to DNS (July 2008), this catastrophic code was committed.

Nobody noticed.

The timing is a bit troublesome, but let’s be realistic:  there’s only so many months to go around.  The real issue is it took almost a decade to fix this new issue, right after it took a decade to fix my old one (DJB didn’t quite identify the bug, but he absolutely called the fix).  The Internet is not less important to global commerce than it was in 2008. Hacker latency continues to be a real problem.

What maybe has changed over the years is the strangely increasing amount of talk about how the Internet is perhaps too secure.  I don’t believe that, and I don’t believe anyone in business (or even with a credit card) does either.

«

Wonder whose commit it was.
link to this extract

 

Customer Letter – FAQ » Apple

Apple has added on some answers to its “Customer Letter” from last week:

»Q: The government says your objection appears to be based on concern for your business model and marketing strategy. Is that true?

A: Absolutely not. Nothing could be further from the truth. This is and always has been about our customers. We feel strongly that if we were to do what the government has asked of us — to create a backdoor to our products — not only is it unlawful, but it puts the vast majority of good and law abiding citizens, who rely on iPhone to protect their most personal and important data, at risk.

Q: Is there any other way you can help the FBI?
A: We have done everything that’s both within our power and within the law to help in this case. As we’ve said, we have no sympathy for terrorists.

We provided all the information about the phone that we possessed. We also proactively offered advice on obtaining additional information. Even since the government’s order was issued, we are providing further suggestions after learning new information from the Justice Department’s filings.

One of the strongest suggestions we offered was that they pair the phone to a previously joined network, which would allow them to back up the phone and get the data they are now asking for. Unfortunately, we learned that while the attacker’s iPhone was in FBI custody the Apple ID password associated with the phone was changed. Changing this password meant the phone could no longer access iCloud services.

«

“It’s not our fault they acted like bozos.”
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Can the government compel Apple to speak? » Lawfare

Andrew Keane Woods (assistant professor of law at the University of Kentucky College of Law, formerly at Stanford as a cybersecurity fellow) on the 1st Amendment implications of the Apple/FBI case:

»code can be a form of speech. The lock-swapping mechanism required in this case would require Apple’s engineers to sit down at a computer and start writing.  And that action, as courts recognized long ago, is speech. In Bernstein v. Department of Justice, the Electronic Frontier Foundation successfully argued that Daniel J. Bernstein, then a graduate student at Berkeley, had a constitutionally protected right to publish his source code, despite the government’s efforts to block it. (Fittingly enough, the code was for encryption software, which the government tried to suppress on the theory that encryption software is a munition subject to export controls.)

If code is speech, and the government is compelling Apple to code, then it looks an awful lot like the government is compelling speech. That does not resolve the issue, of course, but it opens up a new field for debate – one that has not receive enough attention. The government will respond to this claim by noting that Apple’s code is a far cry from the pledge of allegiance, and therefore does not raise the Establishment Clause concerns that applied in [the case of] Barnette [where schoolchildren were being required, against the constitution, to recite the Pledge of Allegiance]. Maybe. Apple will reply that their word is their most important asset, and that the federal government is compelling them to say something they do not believe.

«

This point hasn’t been much mentioned, but is sure to be brought up. The ramifications of this case really are fascinating.
link to this extract

 

Errata, corrigenda and ai no corrida:

Start up: Apple on software, 1970 reporting, Microsoft leaves ICOMP?, cycling’s new doping scandal, and more

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Voters at the Iowa caucus were profiled and tracked via their phones – perhaps without knowing. Photo by ellenmac11 on Flickr.

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

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

(To help formatting on the email, I’ve added » and « on the blockquotes to make it clearer what is quoted, and what is my commentary.)

The Talk Show ✪: Ep. 146, with very special guests Eddy Cue and Craig Federighi » Daring Fireball

John Gruber:

»
Very special guests Eddy Cue and Craig Federighi join the show. Topics include: the new features in Apple’s upcoming OS releases (iOS 9.3 and tvOS 9.2); why Apple is expanding its public beta program for OS releases; iTunes’s monolithic design; how personally involved Eddy and Craig are in using, testing, and installing beta software; the sad decline of Duke’s men’s basketball team; and more.
«

This is, what, the second or third time I’ve recommended a podcast? This is an hour, and fascinating (with data points: iMessage peaked at 200,000 per second, there are 782m iCloud users – v 1bn devices in use, so do the maths – and 11m Apple Music subscribers, up from 10m in December).

Federighi’s point about how they tracked Bluetooth keyboard use for the Apple TV, and which calendar week it dwindled to zero, made me laugh aloud.

You can consider *why* Apple made Cue and Federighi available to Gruber, and it’s pretty obvious: they’re aiming to get their message out about Apple’s software and services quality, after all sorts of criticism lately. And that performance turns out to be pretty impressive – hundreds of millions of users who turn them on straight away that it goes live, such as iOS 9.0, iCloud Drive, and so on. Are they perfect? No. But they iterate to improvement pretty fast, given their scale.
link to this extract

 

Cycling’s mechanical-doping scandal » Business Insider

Daniel McMahon:

»
In the days that followed, the UCI said it had tested more than a hundred bikes at the world championships — and that it would be testing a lot more going forward:

»
The Union Cycliste Internationale (UCI) has taken the issue of technological fraud extremely seriously for many years. It has been clear for some time that the equipment exists to enable people determined to cheat to do so by installing devices hidden in bikes. That is why we’ve invested considerable time and financial resources in organising unannounced tests at races and have recently been trialing new methods of detection. We’ve also been using intelligence gathered from the industry and other information given to us. We tested over 100 bikes at the 2016 UCI Cyclo-cross World Championships in Heusden-Zolder and will continue to test large numbers of bikes at races throughout the season.
«

And sure enough, on Friday, February 12, the UCI announced it had tested another 90 bikes for motors, but this time at a road race in France.
«

This is weird. Motors in bicycles is A Thing. A Doping Thing.
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64-bit iPhones and iPads get stuck in a loop when set to January 1, 1970 » Ars Technica

Peter Bright:

»
Take a 64-bit iOS device—iPhone 5S or newer, iPad Air or newer, iPad Mini 2 or newer, sixth generation iPod touch or newer—laboriously set its date to January 1, 1970, and reboot. Congratulations: you now have a shiny piece of high-tech hardware that’s stuck at the boot screen, showing nothing more than the Apple logo… forever.
«

From the highest-rated comment on the comments below the story:

»
It appears to solve itself when the internal clock is allowed to advance normally to a point when «current time» minus time zone is greater than zero.

(This may be why people are seeing a battery drain fix it or see it fixed when inserting a SIM card that supports carrier time information)
«

Versions of Bright’s story, all written from the same YouTube video, are all over the web. More informed (and stupider) comments can be found beneath them (where they allow comments). The more informed ones point out the errors.

It’s quite the problem for journalists: news editors clamour for the story now, but it’s hard to check all the details, and especially the causes. This isn’t a “forever” bug. But you need to get the story written. That lack of time to research and check erodes trust in outlets which have been quick to follow a YouTube video. It’s not “permanent”, it’s not “bricked”, it’s not “forever”.

Though they then get a second bite of the cherry with “how to fix” articles. (Answer: let the battery run down.)
link to this extract

 

This company tracked Iowa caucusgoers through their phones » Fusion

Kashmir Hill:

»
What really happened is that Dstillery gets information from people’s phones via ad networks. When you open an app or look at a browser page, there’s a very fast auction that happens where different advertisers bid to get to show you an ad. Their bid is based on how valuable they think you are, and to decide that, your phone sends them information about you, including, in many cases, an identifying code (that they’ve built a profile around) and your location information, down to your latitude and longitude.

Yes, for the vast majority of people, ad networks are doing far more information collection about them than the NSA–but they don’t explicitly link it to their names.

So on the night of the Iowa caucus, Dstillery flagged all the auctions that took place on phones in latitudes and longitudes near caucus locations. It wound up spotting 16,000 devices on caucus night, as those people had granted location privileges to the apps or devices that served them ads. It captured those mobile ID’s and then looked up the characteristics associated with those IDs in order to make observations about the kind of people that went to Republican caucus locations (young parents) versus Democrat caucus locations. It drilled down farther (e.g., ‘people who like NASCAR voted for Trump and Clinton’) by looking at which candidate won at a particular caucus location.
«

Deeply disturbing. You can bet that tons of those people had no idea that they were being profiled, or that their data was even being shared in that way.
link to this extract

 

Douglas Rushkoff: ‘I’m thinking it may be good to be off social media altogether’ » The Guardian

»
Ian Tucker: What do you find most objectionable about the kind of economy that technology appears to create?

Douglas Rushkoff: What’s most pernicious about it is that we are developing companies that are designed to do little more than take money out of the system – they are all extractive. There’s this universal assumption that we have to turn working currency into share price.
«

link to this extract

 

Microsoft looks to be retreating from EU antitrust fight against Google » Ars Technica

Quite a scoop from Kelly Fiveash:

»
Ars has learned that members including UK-based price comparison site Foundem—the original complainant in the antitrust case against Google—resigned from ICOMP after Microsoft backed away from what had been a dogged campaign against its search rival in Europe. ICOMP was founded in 2008 to fight for an “online competitive marketplace.”

One source told us that Microsoft had agreed to prop up ICOMP’s food, travel, and accommodation expenses without having any active involvement in the group.

In a letter from Foundem to ICOMP—seen by Ars—the company said: “In our view, an ICOMP that is prohibited from commenting on Google’s immensely damaging business practices is an ICOMP working against, rather than for, the interests of a fair, competitive online marketplace.”

Foundem added in its December 2 missive: “As a leading complainant in the European Commission’s ongoing competition investigation into Google’s search manipulation practices, Foundem cannot be a member of an organisation that has turned its back on such an important issue.”

Ars asked Microsoft to comment on this issue to confirm claims that its fight against Google on search in the EU was effectively over. It did not respond directly to that question, however. Instead we were told that Microsoft’s complaint against Google in the European Commission had not been withdrawn.
«

Fiveash has been covering the Google/Microsoft proxy battle for years since she was at The Register. But it sounds as though Satya Nadella, having gotten rid of the vicious ex-political lobbyist Mark Penn, is dialing down the quiet lobbying.
link to this extract

 

How to gain unauthorized fingerprint access to an LG V10 » AndroidAuthority

John Dye:

»
If this person isn’t running Nova Launcher, the game’s up here. This vulnerability is only known to work on this particular launcher so far, so if your quarry is operating Google Now then they are safe from your malicious intent. However, if they are running Nova Launcher, you can tap the Home button while on the main home screen, then tap the Widgets option. Add a Nova Action widget to the home screen, and then choose the activity “com.lge.fingerprintsettings.”

Pause here for a second, because this is where the vulnerability exists. Through the normal Settings menu, it’s impossible to access this particular activity before going through a security checkpoint and confirming either a fingerprint or PIN. However, since Nova is able to ignore the normal menu flow that leads to this screen, it creates a situation where a user can add their own fingerprint to the list of allowed fingerprints without ever proving that they have authorized access to the device.

The widget on the homescreen will now lead directly to fingerprint settings, and you can add your own fingerprint before deleting the widget, leaving little trace of your actions.
«

Nova Launcher presently has more than 10m downloads, so it’s possible you’d find it on a high-end phone. Commenters suggest it can be done on a Samsung Galaxy S5 and S6 too.

Sure that this will be all over news sites in a day or so of course with hundreds of comments. No?
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Researcher illegally shares millions of science papers free online to spread knowledge » ScienceAlert

»
A researcher in Russia has made more than 48 million journal articles – almost every single peer-reviewed paper every published – freely available online. And she’s now refusing to shut the site down, despite a court injunction and a lawsuit from Elsevier, one of the world’s biggest publishers.

For those of you who aren’t already using it, the site in question is Sci-Hub, and it’s sort of like a Pirate Bay of the science world. It was established in 2011 by neuroscientist Alexandra Elbakyan, who was frustrated that she couldn’t afford to access the articles needed for her research, and it’s since gone viral, with hundreds of thousands of papers being downloaded daily. But at the end of last year, the site was ordered to be taken down by a New York district court – a ruling that Elbakyan has decided to fight, triggering a debate over who really owns science.

“Payment of $32 is just insane when you need to skim or read tens or hundreds of these papers to do research. I obtained these papers by pirating them,” Elbakyan told Torrent Freak last year. “Everyone should have access to knowledge regardless of their income or affiliation. And that’s absolutely legal.”…

… She also explains that the academic publishing situation is different to the music or film industry, where pirating is ripping off creators. “All papers on their website are written by researchers, and researchers do not receive money from what Elsevier collects. That is very different from the music or movie industry, where creators receive money from each copy sold,” she said.
«

The journals’ argument is that they add value by getting papers peer-reviewed, and edited, and choosing the important ones to publish. The existence of free unpeered sites such as Arxiv hasn’t noticeably dented their business.

But it always feels wrong when publicly funded research in particular ends up behind giant paywalls. If the public pays for the research, the public should be able to see its fruits.
link to this extract

 

Evidence suggests the Sony hackers are alive and well and still hacking » WIRED

Kim Zetter:

»
According to new data released this week by Juan Andrés Guerrero-Saade, senior security researcher with Kaspersky Lab’s Global Research and Analysis Team, and Jaime Blasco who heads the Lab Intelligence and Research team at AlienVault Labs, the hackers behind the Sony breach are alive and well…and still hacking. Or at least evidence uncovered from hacks of various entities after the Sony breach, including South Korea’s nuclear power plant operator, suggests this later activity has ties to the Sony case.

“[T]hey didn’t disappear…not at all,” Guerrero-Saade said during a presentation with Blasco this week at the Kaspersky Security Analyst Summit in Spain.

If true, it would mean the hackers who demonstrated an “extremely high” level of sophistication in the Sony attack have been dropping digital breadcrumbs for at least the last year, crumbs that researchers can now use to map their activity and see where they’ve been. The clues include—to name a few—re-used code, passwords, and obfuscation methods, as well as a hardcoded user agent list that showed up repeatedly in attacks, always with Mozilla consistently misspelled as “Mozillar.”
«

link to this extract

 

So who’s going to buy Pandora? » Music Business Worldwide

Tim Ingham:

»
the US public company has reportedly begun talking to Morgan Stanley about finding a potential buyer.

As we stand, Pandora, for all its historical global licensing issues and growing annual net losses, looks a little like a bargain.

The company has lost $7bn in market cap valuation over the past two years. It’s currently sitting at $1.9bn – less than a quarter of Spotify’s latest private valuation.

However, there are other reasons why possible acquirers may cool their jets on Pandora – not least the fact that its active listener base is dropping, down year-on-year in Q4 2015 to 81.1m.

In addition, the firm’s acquisition of Rdio’s assets means an entry into the hugely competitive space of interactive music streaming is an inevitability, while it paid a scary $450m to buy Ticketfly last year – a sister operation that contributed just $10m to the bottom line in Q4.

So who might cough up and buy Pandora if (and it’s a big if) its shareholders agree to push for a sale?
«

Suggestions: Google, Apple, IHeartMedia, Samsung. Can’t honestly see any of them wanting it, rather than just waiting for it to vanish.
link to this extract

 

Why mobile is different » The Economist

Anonymous, as ever with The Economist:

»
the combination of personalisation, location and a willingness to pay makes all kinds of new business models possible. Tomi Ahonen, head of 3G Business Consulting at Nokia, gives the example of someone waiting at a bus stop who pulls out his Internet-capable phone to find out when the next bus will arrive. The information sent to the phone can be personalised, reflecting the fact that the user’s location is known, and perhaps his home address too; so bus routes that run from one to the other can appear at the top of the list, saving the user from having to scroll and click through lots of pages and menus. A very similar service, which allows users to find out when the next bus is due by sending a text message from a bus stop, is already available in Italy.

Would-be providers of mobile Internet services cannot simply set up their servers and wait for the money to roll in, however, because the network operators—who know who and where the users are, and control the billing system—hold all the cards. This has changed the balance of power between users, network operators and content providers. On the fixed Internet, the network access provider acts as a “dumb pipe” between the user’s PC and, say, an online bookstore or travel agent. The access provider will not know how the connection has been used, and there is no question of claiming a commission. Mobile network operators, on the other hand, are in a far more powerful position. “Wireless is a smarter pipe,” says Chris Matthiasson of BT Cellnet. This means that operators are much less likely to be disintermediated.
«

The sharp-eyed will have started in the second sentence; others, in the second paragraph. That’s because this piece is from October 2001. It took a while, but the operators are pretty thoroughly disintermediated now.
link to this extract

 

TfL social media: adapting to Twitter’s changes » TfL Digital blog

Steven Gutierrez of Transport for London, which runs London’s buses and underground services:

»
in the last few years, Twitter has introduced various changes to the way it serves content to its users, and these have impacted upon our ability to reliably deliver these real-time status updates to our followers.

Now selected content on Twitter is shown out of sequence, we will reduce the amount of minor alerts and focus on providing up-to-the-minute alerts for major issues, as well as a renewed focus on customer service across our various accounts.

Our teams will continue to work day and night to support customers including First Contact who take care of the Tube line Twitter feeds as well as CentreComm and LSTCC who have access to everything from iBus (our system for tracking London Buses) to police helicopters monitoring London from above.
«

Wow: you think Twitter is a static thing, but these changes really do affect what happens. The point about image search shows it’s not trivial either.
link to this extract

 

Artificial intelligence offers a better way to diagnose malaria » Technology Review

Anna Nowogrodzki:

»
For all our efforts to control malaria, diagnosing it in many parts of the world still requires counting malaria parasites under the microscope on a glass slide smeared with blood. Now an artificial intelligence program can do it more reliably than most humans.

That AI comes inside an automated microscope called the Autoscope, which is 90 percent accurate and specific at detecting malaria parasites. Charles Delahunt and colleagues at Intellectual Ventures Laboratory—the research arm of Nathan Myhrvold’s patent licensing company Intellectual Ventures in Seattle—built the system with support from Bill and Melinda Gates through the Global Good Fund. The Autoscope was tested in the field at the Shoklo Malaria Research Unit on the Thailand-Myanmar border during malaria season in December 2014 and January 2015. The results were published in December.
«

If I’m reading the results correctly, it got about 95% accuracy. (Correct me if I’m wrong.)

My own forecast is that “an [AI] algorithm for..” will be the “listen to this!” phrase of 2016, and utterly commonplace in 2017.
link to this extract

 

Errata, corrigenda and ai no corrida: None noted.

Start up: flat design problems , ad tech stocks drop, life inside HP, LG’s challenge, and more

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Google’s got a new motto. Photo by vizeur_photos on Flickr.

You can 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 11 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Flat design: its origins, its problems, and why Flat 2.0 is better for users » Nielsen-Norman Group

Kate Meyer:

Google’s Material design language is one example of flat 2.0 with the right priorities: it uses consistent metaphors and principles borrowed from physics to help users make sense of interfaces and interpret visual hierarchies in content.

The Evernote app for Android is a good example of the possible benefits of flat 2.0. Despite having a mostly flat UI, the app provides a few subtle shadows on the navigation bar and the floating plus button (‘add new’). It also makes use of the card metaphor to display content as flat, layer-able planes in a 3D space.

As with any design trend, we advise balance and moderation. Don’t make design decisions that sacrifice usability for trendiness. Don’t forget that—unless you’re designing only for other designers—you are not the user. Your preferences and ability to interpret clickability signifiers aren’t the same as your users’ because you know what each element in your own design is intended to do.

Early pseudo3D GUIs and Steve-Jobs-esque skeuomorphism often produced heavy, clunky interfaces.Scaling back from those excesses is good for usability. But removing visual distinctions to produce fully flat designs with no signifiers can be an equally bad extreme. Flat 2.0 provides an opportunity for compromise—visual simplicity without sacrificing signifiers.

link to this extract

Ad tech stocks keep falling » WSJ

Jack Marshall notes they’re down by 17%-50%:

Serious questions about the future of ad tech and online advertising are also mounting. Some online publishers say they’re now actively avoiding working with third-party ad tech firms, for example, because they argue the vendors devalue their ad space.

Meanwhile the industry is struggling to come to grips with major challenges such as the growth of ad-blocking technologies, and the ongoing problem of fraudulent or “non-human” Internet traffic.

The latter problem might be the one that really does for ad tech companies.
link to this extract

Autonomy ex-boss Lynch tells of poisonous life within HP in High Court showdown » The Register

Neil McAllister:

The suit asserts that many parties within HP “viewed Autonomy negatively,” including HP CFO Cathie Lesjak, who had never liked how the merger looked on paper; HP’s then-software boss Bill Veghte, who hadn’t played a role in the acquisition and reportedly felt snubbed; and the bosses of HP’s hardware division, who viewed Apotheker’s software-centric strategy as a threat.

Even where there was no direct animosity at play, other HP divisions were given perverse incentives to undermine Autonomy, Lynch claimed.

“In Autonomy’s case, other HP business units did not receive ‘quota credit’ or commissions for sales of Autonomy products,” the suit reads. “As a result, HP business units were incentivized to market and sell competing third-party products rather than Autonomy software.”

When HP did sell Autonomy to its customers, the suit alleges, it often did so at deep discounts, without Autonomy’s knowledge. In other cases, HP sales teams would jack up Autonomy’s price tag to boost their own bottom line, which had the result of making competing software look like a better bargain.

Similarly, sales of HP hardware to Autonomy didn’t count toward the hardware division’s sales quota. Thus, Lynch’s suit alleges, the hardware group refused to certify Autonomy on its machines. Dealings with the hardware group were so fraught, the suit adds, that even obtaining HP hardware on which to demo Autonomy proved impossible, and the demo machines were ultimately sourced from competitors, such as Oracle.

Read all about it. Seems like quite standard corporate politics, especially in a sales-driven environment like HP.
link to this extract

Apple’s clever tech makes the iPhone 6s nearly waterproof » WIRED

Brian Barrett:

The phones that have offered this level of water resistance, though, haven’t exactly been chart-toppers. The Samsung Galaxy S6 Active; the Sony Xperia Z3; the HTC Desire Eye; these are phones (or variants) you may have heard of, but their aquaphobia hasn’t demonstrably made them any more desirable. Besides which, the new iPhones aren’t necessarily more water-resistant than others, at least not in any way that’s easily perceivable to consumers; they’re just water-resistant in a more clever way.

Even if it’s largely invisible to its customers, that cleverness could pay off soon for Apple. “Now that you can pay a small monthly fee and get a new iPhone every year, Apple’s going to be getting a lot of iPhones back,” says Suovanen of the company’s new iPhone Upgrade Plan. “In the long run this may help them save money. Because the iPhones are less susceptible to water damage, they’re getting them back in better condition.”

That helps explain, too, Apple opting not to coat the case itself. The same features that make a waterproof case effective make it hell to take apart or repair.

“Nearly waterproof” is a nothing phrase; it’s like “nearly pregnant”. It’s water-resistant to a higher IP rating than previous models. That nothing has been bruited about this seems anomalous.
link to this extract

Google’s ‘Don’t Be Evil’ becomes Alphabet’s ‘Do the Right Thing’ » WSJ

Alistair Barr:

“Don’t be evil” is so 2004.

Alphabet Inc. posted a new code of conduct for its employees Friday, after Google completed its transformation into a holding company. There were few substantive changes in more than 20 documents filed with the Securities and Exchange Commission; the Alphabet code of conduct, posted on its website, is among them.

Google’s code of conduct, of course, is best-known for its first line, which was also included in Google’s 2004 filing for its initial public offering: “Don’t be evil.”

Alphabet’s code doesn’t include that phrase. Instead, it says employees of Alphabet and its subsidiaries “should do the right thing – follow the law, act honorably, and treat each other with respect.”

“Don’t be evil” marked Google’s aspiration to be a different company. But the phrase also has been held up by critics who say Google has not always lived up to it.

Google’s code of conduct is much longer than Alphabet’s. It includes idiosyncracies about drinking alcohol at work (OK but not too much) and taking pets to the office (dogs are cool but cats are discouraged).

The Alphabet code sticks to the basics: avoid conflicts of interest, maintain integrity and obey the law.

link to this extract

Apple patent for iPhone with wraparound screen » Business Insider

Lisa Eadicicco:


The patent, which was published on September 29, is a continuation of various patents Apple has filed in the past. It’s not necessarily a new idea — Apple has been filing similar patent applications since 2013. Regardless, it’s still interesting to speculate that the company may still be experimenting with these types of ideas.

In the document, Apple says that a design like this could change the way we use our iPhones. If the screen of your iPhone were extended, you wouldn’t be limited to interacting with the device’s screen only on the front of the phone.

Apple notes that other aspects of the device found along the side — such as the mute switch, power, and volume buttons — can’t be used with apps since they’re only programmed to perform one task.

Apple’s been doing this since 2013, which implies it thinks it’s a fruitful thing to follow. Notice there’s no home button. (10yo’s opinion: “they haven’t thought this through. People drop their phones and if you have a wraparound one it will break.”)
link to this extract

FBI: We unmasked and collared child porn creep on Tor with spy tool » The Register

Luis Escobosa, of Staten Island, admitted to Feds he broke federal child pornography laws by viewing depraved photos on a hidden Tor service. Unknown to Escobosa, the Feds were running the hidden server, and were using it to feed him spyware.

The child porn website’s systems were seized in Lenoir, North Carolina, after agents got a court order in February. The Feds continued to keep it in operation for two weeks afterwards to catch perverts using it. The site had nearly 215,000 users.

Because users had to use Tor to access the warped website, the web server’s logs were of little use to investigators – they simply listed the nodes of the anonymizing network. Instead, the FBI deployed a NIT – a “network investigative technique,” or what in the hands of criminals would be termed spyware.

The FBI has been using NITs for over a decade. While the Escobosa indictment doesn’t give details, other court documents have stated that the software was developed by adapting a tool written by white hat hacker HD Moore called the Metasploit Decloaking Engine.

A NIT works like this: a file, typically a Flash file, is hosted by a seized child porn website, and sent to web browsers when perverts visit the hidden service via Tor. This Flash file is run in Adobe’s plugin, and establishes a direct connection to an FBI-controlled server on the public internet without going through Tor.

The Feds can then, in most cases, read off the user’s real public IP address from this connection, unmasking the scumbag.

Hmm – maybe keep Flash just for Tor sites? Wait, this is complicated.
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Apple Pay’s grim reality » PaymentsSource

Daniel Wolfe:

Drilling down to individual financial institutions, there is still little movement among consumers, even at major debit issuers like SunTrust.

“Adoption numbers are pretty small at this point,” said Shannon Johnson, SunTrust’s senior vice president of consumer deposits and payments, in a separate presentation at PayThink. “At SunTrust, about 15% of iPhone 6 owners have provisioned their card and about 25% of those have done [at least one] transaction.”

First Financial Credit Union also presented Apple Pay adoption figures at the event. Of its 65,000 members, 9,000 use mobile banking and 48% of those use an iPhone. Of the iPhone users, just 8% – 345 members – use Apple Pay.

The lack of use stems, in part, from a lack of creativity among Apple partners, Johnson said. For most issuers, Apple Pay abruptly appeared on the scene with little warning but a clear message to get on board.

“Prior to that it was conceptual, the option of mobile wallets; it then became real,” she said. “We’re so early in the stages in terms of understanding the opportunity.”

Low use isn’t surprising, because until last week in the US you could just swipe your card to make a transaction: quicker than Apple Pay. Now, people will have to insert their cards into readers (“dip”) and sign, at least; or dip-and-PIN. This has already led to longer queues, apparently. So Apple Pay might appeal as a quicker way to do things. Being ready to catch markets just as they take off is the key.
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Apple CEO Tim Cook: ‘privacy is a fundamental human right’ » NPR

The full interview is on the page; there are short transcript extracts, including this:

Let me be clear. If you buy something from the App Store, we do know what you bought from the App Store, obviously. We think customers are fine with that. Many customers want us to recommend an app.

But what they don’t want to do, they don’t want your email to be read, and then to pick up on keywords in your email and then to use that information to then market you things on a different application that you’re using. …

If you’re in our News app, and you’re reading something, we don’t think that in the News app that we should know what you did with us on the Music app — not to trade information from app to app to app to app.

That latter part is the real distance between Apple and Google. Question is, which leads to the better customer experience over time?
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Will LG’s V10 flagship be able to shake China’s and India’s smartphone market? » Strategy Analytics

Woody Oh of the analysis company takes an overview of LG’s new phone:

it’s getting clear that LG has put the utmost efforts in creating V10 in the following aspects.

1. Dual Screens : While it is estimated to be an extremely hard task to implement dual screens with one LCD panel, LG did a great job in creating the small, but “always-on” secondary display where you can make your smartphone usage better and more diversified.

2. Dual Cameras (5MP+5MP, Front-facing) : While we have to wait for LG’s updates on the applicable usages by this dual front-facing cameras, the purported function to be able to widen the angle when taking the selfie would be regarded as a differentiator, requiring no need to bring the selfie stick when you are in a hurry.

3. Separate 32bit Hi-Fi Audio DAC (Digital to Analog Convertor) supporting 384kHz and Headphone AMP : Listening to music on smartphones are becoming a common habit for almost all smartphone users, young generation in particular, so users are naturally keen to seek for better audio quality while listening. LG’s new bid for integrating the separate Hi-Fi audio chip and headphone amplifier will be a clear differentiator in this respect as more and more people are inclined to carry only one multi-media focused device these days.

4. Professional Mode of Camera and Video: Needless to say, LG is one of the best smartphone makers who can create the best still image quality with its differentiated software, enabling an even novice to take the best picture with very easy mode setting. With V10, LG is expected to make a step further, making the common users become the best movie maker with its easy, but professional setting mode.

I look at that list, and I think: if Apple put those into a new phone, which would it make a noise about? Which would reviewers and customers make a noise about? I think the audio and “camera pro mode” things are gimmicks: you’ll never, ever, ever hear the difference in sound (young users have never, ever sought “better audio quality”; ironically, that’s for oldsters, whose hearing is already deteriorating). Camera pro modes are recipes for confusion.

The dual screen? Depends how useful it really is. The dual front cameras? Might be popular.

The real question is: what’s the difference between a truly useful feature and a gimmick? I don’t think it’s self-evident. (The whole SA note is worth reading for its points about branding too.)
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Taiwan market: Toshiba no longer selling consumer notebooks » Digitimes

Aaron Lee and Adam Hwang:

Toshiba has shifted its notebook marketing focus from consumer to business-use models in Asia, Latin America and Central Europe, and has stopped selling consumer notebooks in Taiwan, according to the vendor’s Taiwan sales agent Grainew.

However, Toshiba will maintain marketing of consumer and business notebooks in West Europe and North America markets because consumer models are still profitable there, Grainew said.

In the Taiwan market, Grainew sells about 1,000 units of a Toshiba high-end business notebook model a month currently and expects monthly sales to increase 10-20% in 2016, the company indicated. While unit sales has decreased after giving up the consumer segment, overall gross margin has increased significantly, Grainew said.

Tiny numbers; smaller companies like Toshiba will increasingly withdraw completely from the consumer PC market because the margins aren’t there.
link to this extract

Start up: how 3D Touch was made (and what it’s like), adblock wars redux, why PC makers want gamers, and more

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“What’s the call quality like?” LG’s next big growth market. Photo by stevec77 on Flickr.

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Apple TV Pre-Reprecussions » iLike.code

Nat Brown:

Apple TV will draw more people to gaming on televisions, so “television-based gaming” as a category will grow due to Apple TV in the near term. Consoles will continue to meet a very clear consumer demand for higher-end gaming using gamepads, though many independent game developers and even high-end publishers will abandon lagging consoles over time for the less restrictive Apple TV market as the Apple TV silicon matures, and for PC gaming on Steam (and with luck on Windows). If Apple introduces a gamepad or has a strong attach rate for third-party MFi gamepads, I expect a lot of current console buyers will within a few years find Apple TV’s performance, price-point and more appealing catalog of gamepad content their choice over the next Microsoft or Sony consoles, if those even get built.

Very true in the US, where Apple TV has more of a role (because box sets without ads sure beat the crap TV with ads) but less so in countries like the UK, I think.
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LG Electronics looks to washing machines to keep spinning profits » WSJ

Min Jeong-Lee:

just as Samsung Electronics Co. and Sony Corp. have become more dependent on other business areas like components rather than mobile devices, LG is looking to its less-glamorous appliances’ unit to secure modest-but-steady profit growth.

“The mobile and TV businesses tend to have a lot of ups and downs. The home appliance business, meanwhile, is less vulnerable to swings,” Jo Seong-jin, LG’s home-appliance chief, said in a recent interview with The Wall Street Journal.

LG’s revenue for appliances—based on local currency value—is up about 13% so far this year, and operating profit margins in the division of about 4.5% to 6% will be “attainable” this year, he said. While far short of the double-digit margins enjoyed by Apple Inc., those levels will outshine LG’s other key business units and that of Samsung’s appliances unit, analysts say.

Washing machines. Washing machines.
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How are artists actually using Apple Music Connect? » Musically

Stuart Dredge looked at some data from the past 10 weeks:

What are they posting? Two kinds of posts seem to be dominating Connect: photos – often cross-posted from Instagram, which suggests that artists (or often their social teams) think Instagram’s visual aesthetic and Apple’s new social service. And secondly promotional messages: encouraging fans to stream songs or albums on Apple Music, pre-order albums on iTunes, or – in the case of artists who are involved with the Beats 1 radio station – posts about their shows.

What’s missing, so far, is the kind of exclusive, engaging stuff promised at the Apple Music launch. In June, Apple’s services boss Eddy Cue said that Pharrell Williams would be posting photos, lyrics and raw mixes of songs – but at the time of writing, he’s posted a single photo two months ago.

Connect isn’t a ghost town: based on the iTunes and Facebook-based lists above, if you followed 30 popular artists on Apple Music, your Connect feed would have between 24 and 33 new posts a week – or 3-5 a day. That might actually be a nicely-manageable complement to the information blur on Twitter and Facebook IF the updates were more than just promotional messages and reposted photos.

It’s still early days, and I’d expect Apple to be working hard to encourage artists not just to use Connect, but to use it well, in the months ahead. As things stand, it is not delivering on its potential. But that potential is there.

link to this extract

iPhone 6s and iPhone 6s Plus first look: Hands-on with 3D Touch » IB Times

Me! I was there:

on the new models, which go on sale on 25 September in 12 countries including the UK, a hard press on an icon generates a subtle “tap” against the fingers holding the phone.

If the app can do something, you feel a single tap on your fingers, and a menu pops up; if it can’t (because it hasn’t been enabled, or the options don’t make sense) there’s a subtler triple tap, and nothing happens.

It needs a quite different approach from the normal “delete” push; you have to intend to make it happen. In the few minutes I was able to try it out, I quickly got used to the difference – which is helped by the haptic feedback. Practice would likely make perfect, or at least more familiar.

The “left-hand-side” press is not easy at first – it’s a sort of push-and-roll for the thumb. The process for getting the haptic pop is simpler. It’s not the sort of thing you’d find by accident in a hurry, though.

I also wrote hands-on for the iPad Pro and Apple TV; check the IB Times site for those later today (Thursday).
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How Apple built 3D Touch » Bloomberg

Josh Tyrangiel gets the sort of prebrief/access that you’ll recall the New Yorker got a year back:

in lieu of the usual polite deflection, Federighi picked up an iPhone 6S and explained one of 3D Touch’s simpler challenges: “It starts with the idea that, on a device this thin, you want to detect force. I mean, you think you want to detect force, but really what you’re trying to do is sense intent. You’re trying to read minds. And yet you have a user who might be using his thumb, his finger, might be emotional at the moment, might be walking, might be laying on the couch. These things don’t affect intent, but they do affect what a sensor [inside the phone] sees. So there are a huge number of technical hurdles. We have to do sensor fusion with accelerometers to cancel out gravity—but when you turn [the device] a different way, we have to subtract out gravity. … Your thumb can read differently to the touch sensor than your finger would. That difference is important to understanding how to interpret the force. And so we’re fusing both what the force sensor is giving us with what the touch sensor is giving us about the nature of your interaction. So down at even just the lowest level of hardware and algorithms—I mean, this is just one basic thing. And if you don’t get it right, none of it works.”

It’s a great article that (especially if read with the New Yorker one) gives you an increasingly clear view of how Apple’s design process works.
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Analyst suggests this may be the last big iPhone launch » PC Retail

Dominic Sacco:

Argus Insights CEO John Feland predicts that “Apple has one good cycle left in them, barring any earth shattering innovations”.

“This upcoming round of iPhones is likely to be the iPhone’s Farewell tour,” he said. “Market demand of future handsets will not be as high because the innovation pipeline has apparently run out of good (compelling enough for consumers to upgrade) ideas.

“iPhone sales are unlikely to hit the same peaks at next year’s upgrade cycle as the level of smartphone saturation tips to replacement over new users.

Noted for future reference. He’s certainly right about saturation, but the odd thing about saturation is that in theory it means you have more people who could upgrade at any given time than in an unsaturated market.
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Samsung to cut 10% of head office staff, Economic Daily says » Bloomberg Business

Jungah Lee:

Samsung is targeting workers in the human resources, public relations and finance departments, Korea Economic Daily reported Tuesday, citing people it didn’t identify. The Suwon, South Korea-based company also plans to cut some expenses next year, the report added. Samsung declined to comment in an e-mail.

The moves come after new high-end Galaxy smartphones failed to impress consumers, triggering five straight monthly declines and wiping out more than $40bn in Samsung’s market value since April. The company’s share of global smartphone shipments fell more than 3 percentage points in the second quarter, and it’s no longer the top seller in China, the world’s biggest mobile-phone market.

“Cutting jobs is the easiest way to control costs and Samsung’s spending on mobile business could also be more tightly controlled,” said Chung Chang Won, an analyst at Nomura Holdings Inc. in Seoul. “Samsung’s preparing to tighten its belt as it isn’t likely see rapid profit growth in the years to come.”

Subsequently, Samsung has denied this, saying a number of employees are being “relocated”. To their homes?
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After selling his company to Google, this man now wants to block ad-blockers » VentureBeat

Paul Sawer:

While [Ben] Barokas was cagey about the specifics of how the technology works, he did refer to a blurring of lines between ads and publishers’ content.

“There are many nuances, but at a high level our platform makes it harder for ad-block software to distinguish advertising from content,” he said. “We believe we can recover pretty much any advertising that exists today.  We have started with direct-sold brand campaigns because they tend to be of higher value to publishers and higher quality to users.”

Barokas said that dozens of ComScore 500 publishers are currently using the platform, but he didn’t reveal any specific details yet regarding the uptake of Sourcepoint, other than that demand has been “overwhelming,” far-exceeding its most optimistic projections.

I was discussing this topic on Twitter the other day and it occurred to me that advertising is a classic example where those who consume aren’t the customer. Advertisers buy space with publishers, but the people to whom those ads are shown aren’t involved in the transaction. This means there’s no way for them – that’s you and I, the readers – to show our displeasure except via adblocking. (A similar disconnect occurred when Microsoft was trying to displace the iPod: it sold music for enabling Windows Media music playback to Windows Media music player makers, not to listeners. That breaks the feedback loop.)

In that sense, adblocking is peoples’ way of speaking up in the transaction. It’s somewhat all-or-nothing, though.
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The PC industry is betting big on gamers » The Verge

Vlad Savov:

The PC gaming market produced $21.5 billion in hardware sales last year, according to data from Jon Peddie Research, which is more than double the revenues derived from console sales. More notably, unlike the broader PC market, which continues shrinking, gaming PC sales are projected to increase over the next couple of years. The JPR analysis suggests the biggest chunk of gaming PC revenue — somewhere in the vicinity of 44% — comes from the so-called enthusiast segment, which the researchers identify as “very performance and style oriented, much like sports car owners.”

Sports car PCs are exactly what we saw from the big manufacturers at IFA. Acer’s Predators, whether it be on the desktop or in the form of pseudo-portable laptops, ape Lamborghini’s angular shapes and aggressive motifs throughout. Asus, with its Republic of Gamers sub-brand, does the very same. From overclocked monitors to otherworldly arachnid routers, both of these Taiwanese companies are pushing as hard as they can to give conventional, commoditized products the veneer of a fresh attitude and personality.

The very apt comment from Sameer Singh, industry analyst at App Annie: “Predictable response when facing disruption – flee upmarket.” (The source of the disruption fits in a pocket and also makes phone calls.)
link to this extract

Start up: uncommenting The Verge, Siri v lights, the washing machine trials, web ad delights, and more

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Life without the Apple Watch: which word fits? Photo by alexknowshtml on Flickr.

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We’re turning comments off for a bit » The Verge

Nilay Patel, editor-in-chief:

What we’ve found lately is that the tone of our comments (and some of our commenters) is getting a little too aggressive and negative — a change that feels like it started with GamerGate and has steadily gotten worse ever since. It’s hard for us to do our best work in that environment, and it’s even harder for our staff to hang out with our audience and build the relationships that led to us having a great community in the first place.

That’s a bad feedback loop, and we want to stop it. So we’re going to call timeout for a while and turn comments off by default on all posts for the next few weeks. It’s going to be a super chill summer.

We’re still dedicated to community, so our forums will remain open — in fact, we’ll be doing more to promote great posts from the forums on our front page and on our social channels than ever before. And we’ll be turning comments on on a post-by-post basis when we want to open things up, so look for that.

But in the meantime, let’s all take that minute and relax. Let someone else curate your playlists, you know? Comments will be back. There will always be another party. Freedom lasts forever.

I refer the honourable ladies and gentlemen to my analysis from last November of how Gresham’s Law explains precisely this phenomenon. We’ll see how the “comments will come back, honest” works out.

And here’s the Verge forum discussing it. Guess which tech company the discussion quickly degenerates into accusing The Verge of favouring? It’s the tech version of Godwin’s Law, and just as corrosive.

Aparna Chennapragada, head of Google Now, discusses apps, search, AI » Re/code

Mark Bergen:

Chennapragada spelled out the three-pronged direction of the product — what she called the “bets” her team is taking. The first bet was embedding Now with Google’s full “Knowledge Graph” — the billions-thick Web of people, places and things and their many interconnections.

The second is context. Now groks both the user’s location and the myriad of signals from others in the same spot. If you enter a mall, Now will tailor cards to what people in that mall typically ask for. “Both your feet are at the mall. You shouldn’t have to spell it out,” Chennapragada said. “Why should I futz with the phone and wade through 15 screens?”

And this is where the third benchmark for Now comes in: Tying that context to the apps on your phone, or ones you have yet to download. In two years, Google has indexed some 50 billion links within apps. In April, it began listing install links to apps deemed relevant in search. Indexed apps will be included in Now on Tap when it arrives in the latest Android version this fall.

Your phone knows you’re at the mall. Is this a place where I need my phone to know I am? I find these scenarios puzzling, because “things I might be at the mall to do” are truly difficult to narrow down, and enunciate, and likely aren’t the same between visits. The times I’d need Google Now to leap into action would be when I found myself somewhere unscheduled and without transport. That’s when I want help.

Hacking Team responds to data breach, issues public threats and denials » CSO Online

Steve Ragan:

Newly published documents from the cache include invoices for services with Italian law enforcement, Oman, South Korea, UAE, Kazakhstan, Mongolia, Lebanon, Germany, Saudi Arabia, Mexico, Brazil, Singapore, Egypt, and Vietnam. The total value of the invoices is €4,324,350 Euro.

The hack went without comment for several hours, until members of Hacking Team woke on Monday morning. One of the company’s staffers, Christian Pozzi, offered several comments on the breach, despite his statement that he couldn’t comment.

“We are awake. The people responsible for this will be arrested. We are working with the police at the moment,” Pozzi wrote.

“Don’t believe everything you see. Most of what the attackers are claiming is simply not true…The attackers are spreading a lot of lies about our company that is simply not true. The torrent contains a virus…”

Pozzi took to Twitter to repeat the same message for the most part, the key points being that Hacking Team is working with law enforcement on this matter, that the massive torrent file has malware in it (it doesn’t), customers are being notified, and that his company has done nothing illegal: “… We simply provide custom software solutions tailored to our customers needs…”

My week without Apple Watch » Tech.pinions

Ben Bajarin:

When I had the Apple Watch on, I averaged 28 fewer times I looked at my iPhone each day. This is a good proxy of how notifications on the watch help minimize the number of times I need to look at my phone to see the nature of each notification.

After reflecting on what looking at my phone fewer times meant in my daily life, I concluded the experience was less disruptive. Don’t get me wrong — I love my iPhone. It is my primary computer. However, having to respond to your phone or pull it out of your pocket or bag for each phone call or text message turns out to be fairly disruptive. As I’ve observed my wife’s behavior as well with her Apple Watch, she articulates similar feelings. As she is out and about, not having to fumble through her purse each time her phone dings is a less disruptive experience in many daily situations. Particularly since not all notifications are important or in need of an immediate response. However, without the use of the Apple Watch, you would not know this without getting your phone out and looking at it. This is an area of immense value that can only be understood once experienced.

I’d agree with this: I’m using an Apple Watch, and the value in not having to have your phone right there is substantial – but also difficult to quantify, because of course you can do without it. Filtering notifications matters; but being able to see or respond to the ones you deem urgent matters a lot.

(If you have an Apple Watch, Bajarin is working with a company called Wristly to do research; you could join.)

Hats off to web advertising. No, really. » WSJ

Chris Mims:

Vast advertising markets that had to decide what ad to show in milliseconds meant that from the very beginning of internet advertising, unprecedented amounts of data were flowing into growing quantities of computing power.

Like a kind of Manhattan project for data, solving the problem of ad matching and delivery meant taking formerly obscure areas of research and transforming it into something everyone could use. “Powerful machine learning techniques were just starting to be developed in academia,” says [Gokul] Rajaram [formerly lead engineer at early ad network Juno, then Google and Facebook, and now at Square], but ad networks would have been impossible without them.

As I researched, I discovered the alumni of ad tech platforms are everywhere, launching startups and leading projects within established companies. What they all have in common is an unusual and broadly powerful toolkit that is being applied to everything from agricultural drones and cybersecurity to food safety and the improvement of hiring practices.

It’s a fair point: we love to hate ads, but the necessity of making them work has driven a lot of improvement.

Here’s what it’s like to control your lights with Siri » The Verge

Jacob Kastrenakes:

If you’re anything like me, you’ll immediately begin using this ability to mess with the people you live with: turning off lights so that they’re sitting in a dark room, turning on a light while they’re set up to watch Netflix. I didn’t see the Siri control as much more than a novelty at first, but the utility became more apparent once I set up two lamps in the same room. At that point, it became easier to turn them on and off simultaneously with Siri than to walk over to each one individually. It’s a basic start, but there’s so much more you could do once additional pieces of the home become connected.

Must be a hell of a big room for it to be easier to talk to the phone than to stand up. Also, what is the “so much more” you can do? Lights are the classic “wrong application”: we usually turn lights on when we enter a room, turn them off when we leave. In between, there’s hardly ever anything we want to do to them – and if we do, then it’s either a short reach, or a couple of steps. Pretending otherwise is automation for its own sake.

Home automation still needs really simple sensors and actuators that we can fit ad-hoc to things we choose, not devices where it’s built-in but not actually useful.

Chaebol slapfight: Samsung, LG in first trial over washing machine vandalism » BusinessKorea

Cho Jin-young:

In the first trial between the two Korean home appliance giants, the legal representatives for LG gave an item-by-item rebuttal of the allegations that CEO Cho Seong-jin and two other officials at the company broke the doors of three Samsung washing machines intentionally. 

“The doors of the front-door washing machines are big and heavy, so they can naturally tilt downward to some extent and swing a little bit, which can be easily found in other washing machines,” a legal representative for LG appealed.

The attorney also raised suspicions about the authenticity of the damaged washing machines presented to the court as evidence, arguing that the products seemed to have had more scratches than before, and that they could not be the results of Cho touching the washers.

What’s “de minimis non curat lex” in Korean? (Also: “first” trial?)

YouTube is the No.1 music streaming platform – and getting bigger » Music Business Worldwide

Scary news for those who don’t feel YouTube is paying music rights-holders enough: it’s the biggest music streaming service on earth, and it’s growing faster than Spotify or any of its rivals.

That’s according to MBW analysis of the latest market stats out of the UK and US, which show that YouTube increased its market share of total on-demand streams in the first six months of this year on both sides of the Atlantic.

In the first half of 2015 in the US, overall on-demand streams grew 92.4% year-on-year to 135.2bn.

The majority of this growth was down to YouTube (plus Vevo and other video services), which saw a stream volume increase of 109.2% to 76.6bn.

Though it seems like Vevo is a big player in this. But yes, YouTube swamps everything else.

Start up, May 28: LG Urbane reviewed, crashing iOS, who really bought Re/Code?, Meeker’s 2015, and more

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Strong feelings, and not about the video game. Photo by gato gato gato on Flickr.

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Mary Meeker’s Internet Trends for 2015

Have to admit I haven’t read it (found it late) but it’s always essential reading. Download and peruse.

Apple’s ‘Proactive’ to take on Google Now with deep iOS 9 search, Augmented Reality Maps, Siri API » 9to5Mac

It’s that Mark Gurman guy again:

Apple began to lay the groundwork for Proactive with its acquisition of a personal assistant app called Cue in 2013, seeking to relevantly broaden iOS’s Spotlight and Safari search results. iOS 8’s ability to display Wikipedia Search results within Spotlight was the first taste of the Proactive initiative, and was partially designed to reduce iOS’s search reliance on Google. Sources say that Apple’s internal iOS usage metrics indicate that Google clicks have indeed fallen since iOS 8’s release last fall. Now Apple wants to take Proactive to the next level, and it may do so with iOS 9’s introduction at the annual Worldwide Developers Conference on June 8. While Apple has positioned Siri as an “intelligent personal assistant” since the fall 2011 launch of the iPhone 4S, Proactive will go much further to integrate with your data. To begin with, Proactive will become a new layer within the iOS operating system, replacing the pulldown Spotlight menu currently found on the iOS Home screen.

But he says there’s also disagreement about whether to launch this in iOS 9, which was sorta going to be the “Slow down, Snow Leopard” release. (Also, “augmented reality” always sounds cool and then disappoints. I’ve tried it. It ain’t all that.) I’d love to see the metrics around Gurman’s stories compared to those for Re/Code. I think he might be ahead in pure readership. But of course he doesn’t have a giant conference attached.

Bug in iOS Unicode handling crashes iPhones with a simple text » AppleInsider

AppleInsider reader Kaitlyn on Tuesday discovered that receiving the Unicode characters seen in the screenshot above through Apple’s iOS Messages app triggers iPhone restarts, lockouts from Messages, Springboard crashes and more. A thread on Reddit narrowed down the system crash and reboot errors to iOS Unicode handling. More specifically, the Unicode string in question is part of a much longer block of text that cannot be fully rendered in Notifications.

If you’re thinking this sounds retro, that’s because it is: same sorta bug (different string) did the same thing back in August 2013. Wonder how long the fix will take. Also: Apple Watch apparently not susceptible, which is super-puzzling.

A series of wholly unrelated observations about Vox Media’s acquisition of Recode » The Awl

Matt Buchanan points out that if you pull the threads of both companies for long enough, you end up – from both – at Comcast, where its venture arm is trying to sell a company to the main arm. Trebles all round, or something. Also, take a look at the tags on the story. (Via Charles Knight.)

The Office of the Attorney General of Switzerland seizes documents at FIFA » Swiss Attorney General

Now, I don’t usually care about football (soccer to you Americans), but the evident corruption in FIFA (the “world governing body for football”) has been evident for years. Now, finally, something is happening – but not on just one, but two fronts:

In connection with irregularities surrounding football tournaments, two separate proceedings must be distinguished: The Office of the Attorney General of Switzerland (OAG) is conducting a Swiss criminal investigation regarding the allocation of the 2018 and 2022 World Cups. For inquiries regarding this Swiss criminal investigation, please contact the OAG. In separate proceedings, and independently of the Swiss criminal investigation of the OAG, the US Attorney’s Office for the Eastern District of New York is conducting a criminal investigation into the allocation of media, marketing and sponsoring rights for football tournaments carried out in the United States and Latin America. The Federal Office of Justice (FOJ) supports this criminal investigation as part of international legal assistance.

International Olympic Committee next?

Charles Johnson: world’s worst troll removed from Twitter » News.com Australia

Emma Reynolds:

Chuck is now raising money on his far-right website GotNews.com to have himself reinstated following this “censorship”. But his previous threats of legal action have never led to anything, with a website dedicated to the many times he has planned to sue for libel.

The list of things he has got egregiously wrong – on purpose? – is astonishing. But his whole schtick is about outrage and extremism. It’s more the attention paid to such people that’s the problem. When they’re just shouting to themselves, it means nothing.

Shipments of 2-in-1s to grow over 60% on year in 2015, says MIC » Digitimes

Notebook shipments, which are being impacted by tablets, are expected to drop 2.7% on year to reach 167m units in 2015, but 2-in-1 device shipments are expected to grow 62.5% on year to reach 13m units due to Microsoft’s aggressive promotions, according to figures from the Market Intelligence & Consulting Institute (MIC).

Compare to the estimated 7m Chromebooks: these are both still niche markets.

LG Watch Urbane review: why Android Wear trails Apple’s Watch » WSJ

Geoffrey Fowler:

The Urbane falls behind in its approach to the fundamental smartwatch problem: When technology is attached to our bodies, there’s a thin line between help and nuisance. Android Wear is the annoying little brother of operating systems. It really wants your attention, and to keep you swipe-swipe-swiping away on its little screen. A smartwatch’s purpose is to keep you plugged in so you don’t have to be glued to your phone. Since I started wearing an Apple Watch two months ago, I check my phone roughly 25% less, according to Moment, an app that monitors my habits. Ideally, a smartwatch should give you just enough information to keep your smartphone anxiety in check, but not so much that you’re tempted to keep looking at your wrist. The Urbane’s default settings do the opposite. When I just want to check the time, the Urbane often teases me with a notification “card” on the bottom of its screen. You’ve got four new emails! It’s 68 degrees today! You can quickly swipe it away, but after that one’s gone, there’s usually another card waiting.

Lots of room for improvement – but it’s still very early days. (Hadn’t heard of Moment before. “TRACK HOW MUCH YOU AND YOUR FAMILY USE YOUR PHONE”. Are you brave enough? Um, and it has a Watch version.)

Infomercial GIfs, because real life is hard. » Imgur

Zero tech in this collection of “how hard life is because we don’t have X tech that the informercial will sell you”. Lots of solutions looking for problems – happily, we don’t see the solutions, just guess at them (and, often, the problems). The most impressive, in my view, is the woman in the second GIF who juggles the bottle. That’s really hard to do badly well.

Android (and Apple, and BlackBerry, and Microsoft Mobile) handset profitability – the Q1 scorecard (updated)

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Quality. Profitable. Photo by Thomas Hawk on Flickr.

At the end of January, I drew together the figures from the fourth quarter of 2014 to look at how profitable making smartphones was for companies including Apple, Samsung, HTC, LG, and Sony. The approximate answer was: not very, unless you were Samsung or Apple.

Another quarter gone: time again to see if anyone is faring any better. As a bonus I’m also throwing in Microsoft Mobile and BlackBerry.

Proceed with caution

A few words first on procedure. I look at the companies’ financial statements and information about the smartphone shipments, revenues and operating margin of their handset divisions. In some cases they don’t give this explicitly, or they give some but not all of the numbers, which have to be estimated or wrangled by triangulating with analysts’ data. (I tend to use IDC and/or CounterPoint, who I’ve found to be reliable.)

Some people have wondered why I use operating margin rather than gross profit to calculate these numbers. There’s an important difference. “Gross profit” is what you have left over after subtracting the cost of the goods in the product, and the cost of making it, and the cost of getting it to the customer. It’s a number that flatters a business because it doesn’t take into account all the other costs involved in running that business – such as paying sales, general and administrative [SG&A] staff, marketing, R+D (which comes out of your current cash, and is an investment in the future of the business), and all the other things you think of as “keeping the lights on”. If selling your products doesn’t cover all those costs, then you don’t actually have a viable business.

The Motorola finesse

This was why it used to bug me when Motorola Mobility’s people would say that it “made money on each handset it sold” selling its low-priced devices while owned by Google. Sure – it made money on gross margin. It wasn’t a lie, but it was economical with the truth, a comment made perhaps in the knowledge that most journalists wouldn’t ask “you mean on gross margin or operating margin?”

Motorola Mobility was fabulously unprofitable; its losses, once you included SG&A and R&D, were dramatic. Between the second quarter of 2012 (when Google took it over) and the first quarter of 2014, Motorola’s total revenues were $10.98bn. Its losses, once you took account of those costs, were $1.9bn, or 17 cents for every dollar of sales. Motorola never had a profitable quarter while inside Google. In fact if you take its entire life after being spun off from the larger organisation at the start of 2010 to the start of 2014, over 17 quarters just two showed operating profit, totalling $160m. Total operating losses, including those profits: $2.47bn on revenues of $30.6bn. Now it has been swallowed by Lenovo, which promises to make it profitable. We’ll see.

So don’t let glib answers fool you. There are lots of way to talk about “profit”. Here’s mine. (“ASP” is average selling price, across the company’s whole portfolio of smartphones.)

So how was Q1 for you?

With the numbers now in from all the top-line handset makers (who you’d expect would be the profitable ones), here are the numbers. (An asterisk means the number isn’t absolute, and the reason for each is explained below the table.)

OEM Handset
revenue
US$ (approx)		 Operating profit US$m Operating
margin %		 handsets shipped Implied ASP per phone Implied profit per phone
HTC $1.35bn $0.89m 0.06% 5.0m $270 $0.18
Sony $2.28bn –$461m -20.2% 7.9m $288.70 –$58.40
LG $3.25bn $79.85m 2.46% 15.4m $210.79 $5.18
Samsung $22.53bn $2.47bn* 10.96% 83.3m* $250.88 $29.65
Total for top-end Android $29.41bn $2.09bn 7.1% 111.6m $263.50 $18.73
Lenovo $2.82bn* -$218m -7.7% 18.7m $150.80* -$10.28
Top-end Android inc Lenovo $32.23bn $1.87bn 5.80% 130.3m $247.35 $14.35
Apple $40.28bn $11.27bn (at 28% margin) 28% (est) 61.17m $658.53 $184.20
Microsoft Mobile $1.03bn –$369m -35.8% 8.6m $119.70 –$54.00
BlackBerry $274m –$156.88m -57.2% 1.3m $210.77 –$120.68

Assumptions
HTC: I’ve assumed that all the first-quarter revenue is for HTC phones – which isn’t true, given that it also now offers the HTC Re and made the Nexus 9 tablet sold by Google. (Sales were likely pretty small, since it didn’t show up in IDC’s tablets category where the smallest number was about 1m, and you’d expect that Amazon sold more. I understand Nexus 9 shipments in Q4 were just 70,000; the number would be substantially smaller in Q1.)
The 5m phones number comes from one of the big analysis companies that tracks smartphone shipments. (Not sure I have their permission to say who, but they’re very reliable.)
The operating margin isn’t a mistake – it really is $890,000 after conversion. HTC truly lives on the edge; and has been spending on R+D for its virtual reality headset. The phones are probably more profitable than this suggests; the Nexus 9 and Re probably aren’t, but it’s unlikely they contribute much to revenue.

Sony: Currency converted using the yen rate for the quarter cited in Sony’s results presentation. The huge operating loss is a puzzler: Sony’s explanation in its financials is that besides the dollar’s appreciation hitting costs, it was due to “the recording of intellectual property related reserves in the current quarter”. I don’t know what the IP-related issues are; is Sony gearing up for a court fight with someone? (Microsoft, over Android licensing?)

LG: Currency converted from Korean won using the same conversion rate as Samsung.

Samsung: the company doesn’t give exact figures for its smartphone shipments; it coyly said in its investor call it had shipped 99m mobile phones including featurephones and that smartphones were in the “mid-80s percent”. This is IDC’s number.
Its smartphone revenues calculated on the prevailing won-dollar exchange rate on 31 March, and the basis that those 15.7m featurephones had a shipping price of $15, and that the “about nine million” (quote from the earnings call) tablets had a shipping price of $175.
Samsung gives operating profit for its entire “IM” division, which includes its PC divison. I’m assuming these make zero profit, or not enough to perturb the figures. If any of its PCs, tablets or featurephones makes a profit, that reduces the per-handset smartphone profit.

Lenovo: now owns Motorola, which is dragging down its results, as it does everywhere. Assumptions: the 2.5m tablets it sold went for an ASP of $100 and made zero profit; a higher tablet ASP and profit means the smartphone business did worse. Another assumption: Moto360 smartwatch sales didn’t add materially to revenues, and didn’t lose money. (You can argue about this. It reduces the smartphone revenue, but boosts profitability if the Moto360 sold well at what was probably a loss or breakeven.)

Lenovo is odd in that its smartphone business is now partitioned into two – there’s the Lenovo brand, which sells almost entirely in China (and recently in India, a little), and the Motorola brand, which sells much more widely. The Lenovo brand phones have really low ASPs – historically, around the $100 mark. The Motorola ones have much higher ASPs – about $230 in the most recent quarter. None of it is profitable, though; even before Motorola the mobile business was losing money, and there are various unspecified writeoffs of unspecified amounts in the latest quarter that make the losses even worse. Lenovo says it’s aiming to get Motorola profitable within 4-6 quarters of acquisition. So that’s by the middle of 2016.

Trouble for Lenovo is that it hasn’t made a profit with low ASP phones, and it’s not making one with Motorola’s high ASP ones. Perhaps it hopes the profit will come with scale (or the departure of rivals?).

Top-end Android cumulatively: clearly, Samsung dominates: it has 30 times more profit than its nearest rival (LG) on about 5 times as many phones.

Apple: we have to assume Apple’s iPhone operating profit margin at 28%, because it doesn’t break out divisional profits; all costs are assigned across the company. (You could estimate it by taking iPhone revenues as a percentage of the total, and assigning that percentage of all other costs to it.)

Microsoft Mobile: I previously set out all the calculations used here (which exclude writedowns on intangibles). Specific assumptions: its featurephones have an ASP of $15 and make $5 profit per handset; sales and marketing was $300m per quarter. Mobile is a terrible business for Microsoft, but it has to stick with it.

BlackBerry: these are the figures for its quarter to the end of February. I looked at those in detail, and found that services and software have consistent gross profit margins of about 82%. Subtract that from the gross profit, and you get a total gross profit for handsets of $21.20m. Now we have to subtract operating expenses from that; assuming those are proportional to the revenues from each slice of its business (hardware, software, services) we take away 42%x $424m = $178.08m to get the operating profit for BB’s handsets. It’s negative.
Handsets are an even worse business for BlackBerry than for Microsoft – and BlackBerry can’t bear the losses like Microsoft can. Tick tock.

Questions you’re asking:

1) Where’s Lenovo (including Motorola)?
Hasn’t reported yet; calendar Q1 is the end of its financial year, and it takes an age putting together its results. Might have them some time in, who knows, June. (It seems to have shipped 18.8m phones in the quarter, down year-on-year from the 19.1m Lenovo and Motorola shipped when separate.)
There, it’s now included.

2) What about Xiaomi/Huawei?
Though they’re big players in shipments (15.3m and 17m respectively), Xiaomi doesn’t publish numbers anywhere I can find (pointers welcome), and Huawei doesn’t break out any detail from its mobile division – though a year ago it said it was operating just ahead of break-even.

Comparison

Sequential quarter comparisons are usually odious, especially if you look from the Christmas quarter to the new year one; shipments fall, revenues fall and stuff gets cheaper as companies try to shift unsold stock and get ready for New Things. Bearing that in mind, looking back at the Q4 figures, we find that:
• HTC’s margins worsened quite a lot; handset ASP stayed fairly steady.
• Sony’s ASP dropped a lot, from $305 to $288.70.
• LG actually improved its operating margin, kept revenues and shipments up, and saw only a slight dip in ASP
• Samsung kept revenues up while increasing shipments – hence a big drop in ASP, from $306 to $250.88 – and improved operating margins and profit
• Apple saw shipments fall (as expected), a slight fall in ASP but per-handset profit remained almost the same. And it’s still taking all the money.

Coming up…

In a followup post, I’ll look at ASP trends for these companies, and what they suggest about the challenges facing these companies – particularly Sony – and also the question of whether Samsung might withdraw from the PC business altogether. (It pulled out of Europe last year.) Stay tuned.

Start up: costing Apple’s Watch, why Glass flopped, evaluating Fitbit, with Android’s permission?, and more

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“Yeah, I think my Fitbit fell out of my trousers during this, so I bought another…” Photo by betta design on Flickr.

A selection of 8 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

No, the Apple Watch does *not* cost $84 to make » Mobile Forward

Hristo Daniel Ushev:

Here are two examples. These firms looked at the (1) hardware and (2) manufacturing costs of the Apple Watch.

IHS’ estimate for the 38mm Sport version: $83.70.
TechInsights’ estimate for the 42mm Sport version: $138.50.
Can both be correct?  No. “But they looked at different-sized models” one might say. Nah; that’s almost irrelevant.

From my experience working with product and cost experts at a well-known mobile device company, I can tell you:  Apple Watch does not cost $84 in hardware and manufacturing. It costs meaningfully more. Probably more than 2X that. And I’ll tell you why. Maybe I’ll even give you my estimate.

(By the way congrats to the TechInsights crew for having a reasonable estimate, in my view.)

First, it’s not for the reasons you see in the comments on the articles that re-publish these estimates. In those articles, you’ll typically see well-intentioned commenters say that one needs to account for research and development, sales and marketing, corporate income taxes, etc. None of that is accurate.

(Ushev used to work at Motorola. He points out so many ways in which costs are higher that you begin to wonder how Apple makes such big gross margins.)

The debacle of Google Glass » Tech.pinions

Tim Bajarin:

the bottom line is most technology gets started and refined in what we call vertical markets well before they get perfected and priced low enough for consumers.
When Google introduced their Google Glass, this was the first thing that came to mind about this project. I wondered if Google even had a clue how tech adoption cycles develop. While it is true glasses had been used in vertical markets since 1998, even after all of this time, we saw no interest by consumers. Google’s decision to aim Glass at consumers first, yet price them as if they were going to vertical markets, stumped me. Even the folks who had spent decades making specialized glasses for use in manufacturing, government applications, and transportation were dumfounded by Google’s consumer focus with Google Glass, priced at $1500.
Apparently, Google found out the hard way how tech products get adopted…

…I was a Google Glass Explorer and the experience was horrible from the start. Google Glass now sits in my office museum of failed products. The UI was terrible, the connection unreliable, and the info it delivered had little use to me. It was the worst $1500 I have ever spent in my life. On the other hand, as a researcher, it was a great tool to help me understand what not to do when creating a product for the consumer.

Google’s go-to-market strategy with Glass always puzzled me. It obviously had, and has, applications in business (medical, etc). Yet as Bajarin says, the marketing suggested a consumer product. Result: failure.

LG Watch Urbane review: $350 buys you the nicest Android Wear watch yet, if that’s something you want » Android Police

David Ruddock:

For a lot of people, there’s probably going to be something at least remotely interesting about Wear.

For me, it’s managing emails and messages. Don’t want to read that work email while I’m in the middle of typing up an article or otherwise engaged? Quickly skim the subject on the watch, and dismiss or archive it. I’ve even started using the voice replies for SMS and Hangouts when I’m in my own home (frankly, it weirds me out voice messaging somebody on my watch in public for some reason???), because it’s less disruptive than pulling out my phone, unlocking it, opening the app, and typing out a reply. It’s also great for quick Google searches, turn-by-turn navigation (especially when you’re walking), music controls, and activity tracking.

Of course, our smartphones do most of this stuff, too, so I’m not about to claim there’s actually a compelling economic argument for smartwatches yet – there isn’t.

In places, Ruddock sounds bored beyond belief with the whole concept of a smartwatch. You’d certainly struggle to find any enthusiasm at all for it.

Thoughts on the Fitbit IPO filing » Beyond Devices

Jan Dawson digs into the numbers; he finds that the best model for usage is that on average, a Fitbit is used for about six months:

So, how important is this abandon rate information to our evaluation of Fitbit’s prospects going forward? Well, one could argue that at just 10 million sales per year, there’s tons of headroom, especially as Fitbit expands beyond the US (the source of around 75% of its revenues today). But in most consumer electronics categories, there’s a replacement rate for devices, which continues to drive sales over time even as penetration reaches saturation. The biggest worry in the data presented above is twofold: one, very few Fitbit buyers have yet bought a second device; and two, many don’t even use the first one they bought anymore. Once Fitbit maxes out its addressable market, it’s going to have a really tough time continuing to grow sales.

This may be a factor for all wearables, unless they can show some compelling reason to upgrade from the previous one.

Upon this wrist » Medium

Craig Mod, channelling Hemingway:

Oh, they are so downtrodden now, those who asked about the thing, the thing on the wrist. I am the harbinger of technodoom. Knower of useless celestialisms. And I can see in their eyes that they want to hear some accolades. Some uplifting remark. Nothing gibbous. And so I say a single word: Exercise. Like I am selling plastics in 1930. Exercise, I say. And I smile. That is what it does best. But I have to caveat, slumping back into my chair, my posture as the worst salesman ever — Well, I mean, it’s good, or, rather, it has potential. But presently it is very dumb.

LG G4: the best Android smartphone camera » WSJ

Nathan Olivarez-Giles:

My colleague Joanna Stern already covered the merits of Samsung’s Galaxy S6 and S6 Edge, and sung the praises of their 16-megapixel rear cameras. So I was surprised to find that LG’s new flagship phone has an even better camera.

After putting the Galaxy S6 Edge, the iPhone 6 Plus and the LG G4 through a series of photo tests, I found that not only did the G4 keep up in most conditions, it took better low-light and night photos. LG says one reason is the f/1.8 aperture lens on the G4’s 16-megapixel camera. It lets in more light than any other smartphone on the market. This camera system also bumps up the exposure, so that these low-light settings come off brighter than comparative shots — and even brighter than what the naked eye sees.

It’s all about the camera; the review barely touches any other topic.

The women working in NYC’s nail salons are treated more terribly than you can imagine » VICE

Allie Conti shows how the NYT exposé of treatment of workers in these salons got made. It’s impressive.

VICE: Did you ever just go from nail salon to nail salon, or was that too risky?
Sarah Maslin Nir: I started doing that toward the end, because it’s a very collusive industry. Everybody conspires. The experts I’ve spoken to say the owners teach each other the methods of how to exploit the workers and how to avoid prosecution. So I was afraid if I started going from salon to salon, an owner would catch me and tell all the others, and it would all get shut down. So only toward the end would I go to salons, and I’d actually go get a manicure and talk with the women, sometimes with a translator sitting next to me, and just have these quiet conversations.

One of the most interesting things about the story is I learned how to ask questions. At the beginning, I’d ask, “Where do you live?” And they’d say, “Oh, I live in a one-bedroom in Flushing, Queens.” And then I realized that when they live in a one-bedroom, they lived with six to eight other people. So my questions changed. I would say, “How many people do you live with?” and they’d say, “Oh, twelve.”

Amazing, detailed work about something that’s been sitting in front of people for ages.

Google said ready to give Android users more privacy controls » Bloomberg Business

Brian Womack and Lulu Yilun Chen:

Google is planning to give its mobile users more control over what information applications can access, people familiar with the matter said.
Google’s Android operating system is set to give users more detailed choices over what apps can access, according to the people, who asked not to be identified because the matter remains private. That could include photos, contacts or location. An announcement of the change, which would put Android closer in line with Apple’s iOS, is expected for Google’s developer’s conference in San Francisco this month, one of the people said.

Long overdue. Apple introduced it to iOS in September 2012. And it was actually included – against Google’s intent – in Android 4.3 in July 2013, though you had to download a separate app to enable it, but then removed three weeks later. Also, we know it will take years for any substantial proportion of people to get this if it’s included in Android ‘M’ (Marzipan?). Though there are some suggestions that this will only apply to Chrome, not across Android.