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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: fibre’s horsemeat moment, AMD in new Apples?, Sony’s troubled cameras, Xiaomi sales slow, and more

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A discredited voice recognition system was used in scores of secret court cases which are now being disputed. Photo by Lotus Carroll on Flickr.

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Quality woes a challenge for Tesla’s high-volume car » WSJ

Mike Ramsey:

»Anne Carter had her Tesla Motors Inc. Model X sport-utility vehicle for a few days before the $138,000 electric vehicle suffered a mechanical malfunction.

On a recent morning, the car’s falcon-wing doors wouldn’t open as she prepared to drive her children’s carpool to school. “It’s a bummer; you spent all this money…and the doors won’t open,” she said in an interview while waiting for the Model X to be picked up for repairs. She expected some issues, but feels embarrassed that friends might think: “Look at the Carters—they spent all this money and the doors don’t work.”

During a very critical time for the pioneering electric-car maker, its well-to-do customers are confronting not only problems with the Model X’s rear doors but other issues, including a seat latch the company has recalled.

«

Making cars seems to be really pretty difficult.
link to this extract

 

Nvidia creates a 15bn-transistor chip for deep learning » VentureBeat

Dean Takahashi:

»Nvidia chief executive Jen-Hsun Huang announced that the company has created a new chip, the Tesla P100, with 15 billion transistors for deep-learning computing. It’s the biggest chip ever made, Huang said.

Huang made the announcement during his keynote at the GPUTech conference in San Jose, California. He unveiled the chip after he said that deep-learning artificial intelligence chips have already become the company’s fastest-growing business.

“We are changing so many things in one project,” Huang said. “The Tesla P100 has five miracles.”

Nvidia previously launched its Tesla M4 and Tesla M40 deep-learning chips, and those chips are selling fast. Now the Tesla P100 is in volume production today, Huang said.

“We decided to go all-in on A.I.,” Huang said. “This is the largest FinFET chip that has ever been done.”

«

Maybe Intel could focus on GPUs instead of CPUs? Seems to be where the business is heading.
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AMD Radeon 400 series ‘Polaris’ GPUs land major Apple design wins » WCCF Tech

Khalid Moammer:

»From what we’ve been hearing Polaris is no exception. In fact our sources have confirmed that the major OEM design win that we had reported on last year is indeed for Apple.

The Sunnyvale, California based chip maker secured wins for both of its upcoming Radeon 400 series 14nm FinFET graphics chips, Polaris 10 and Polaris 11. Previously known as “Ellesmere” and “Baffin”, both of which are Arctic Islands. The chips have since been renamed to Polaris 10 and 11 respectively, in line with AMD’s newly adopted Astronomy based architectural code naming scheme which Koduri had instated after the Radeon Technologies Group was established last year.

The Polaris 10 and 11 chips will go into new desktops and notebooks from Apple, which the company plans to bring to market later this year. And although these Apple design wins may not be significant volume contributors they are very profitable.

«

That’s going to make for an interesting WWDC in June, then. These Radeon GPUs would be capable of VR work, apparently.
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Two thirds ‘misled’ by fibre broadband advertising, experts compare situation to horsemeat scandal » Cable.co.uk

»Research by Cable.co.uk has revealed that two thirds of fibre broadband customers on BT’s Openreach network – which services around 80% of the UK’s total broadband customer base – are unaware their so-called ‘fibre’ service arrives at their home through a standard copper telephone line.

This is important, because the speeds available over copper reduce drastically over distance, severely limiting both current speeds and future upgradability.

Experts, speaking to Cable.co.uk, labeled the way the term ‘fibre broadband’ is widely used in the UK ‘misleading’ and compared the situation to the horsemeat scandal.

This comes just days after the Broadband Infrastructure Group (BIG), a cross-party group of MPs led by Grant Shapps, demanded an end to what it described as a “mis-selling” scandal potentially bigger than PPI and Volkswagen’s emissions tests.

«

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On the road to recap » Above the Crowd

Noted venture capitalist Bill Gurley:

»While not obvious on the surface, there has been a fundamental sea-change in the investment community that has made the incremental Unicorn investment a substantially more dangerous and complicated practice. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate…

…Perhaps the seminal bubble-popping event was John Carreyrou’s October 16th investigative analysis of Theranos in the Wall Street Journal. John was the first to uncover that just because a company can raise money from a handful of investors at a very high price, it does not guarantee (i) everything is going well at the company, or (ii) those shares are permanently worth the last round valuation. Ironically, Carreyou is not a Silicon Valley-focused reporter, and the success of the piece served as a wake-up call for other journalists who may have been struck by Unicorn fever. Next came Rolfe Winkler’s deep dive “Highly Valued Startup Zenefits Runs Into Turbulence.” We should expect more of these in the future.

«

Every VC I watch on Twitter has gone bananas about this post, which warns that “the game has changed”. Meanwhile, notable that the two articles Gurley points to were in the paywalled Wall Street Journal.
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Sony disposal beckons » Bloomberg Gadfly

Tim Culpan:

»In a surprise announcement, Sony cut a further 59.6bn yen [£372m, $533m] from the value of the devices unit, citing camera modules as the culprit, wiping a net 30bn yen from full-year operating income:

»

“Due to a decrease in projected future demand, Sony has revised its Mid-Range Plan for the camera module business in the Devices segment from the period beginning with the fiscal year ending March 31, 2017.”

«

How the star performer morphed into one of Sony’s biggest drags can’t be fully explained by external factors. For sure, the global mobile market is slowing, but smartphones are still posting growth, especially at the high end, as consumers are prepared to pay more for quality components such as cameras. Declines in the PC and digital still camera markets can’t account for the sudden reversal in fortunes, either: That’s been a theme for a few years.

That leaves internal factors. If this truly is a macro problem, then the sudden writedown bears a whiff of incompetence. If, on the other hand, Sony lost a key client, that says something about its ability to retain big customers, or its dependence on too few.

«

Feels like it must have lost a key client in the smartphone space. But who, and to which rival?
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Secretive legal committee buries ruling against Theresa May » Politics.co.uk

Ian Dunt:

»The case also saw Dr Harrison, an expert in voice recognition, dismantle the claims about fraud – and their ability to test for fraud – made by the Home Office and ETS, the firm who ran the test. What he said was equally applicable to all the other cases where people had been wrongly accused of fraud. The evidence the Home Office relied on was identical in all cases, so knocking it down for one should knock it down for all.

But it won’t, because the reporting committee is refusing to report it. The decision means that the case cannot be cited, except under very strict and laborious conditions, in other appeals. It means many thousands of people who have been unjustly deported will not even know of its existence. The decision makes the ruling against Theresa May legally useless. It’s as if it never happened. The reporting committee has taken a damning judgement against the home secretary and buried it.

«

Dunt only refers in passing to the voice recognition stuff. ETS apparently had a contract with the UK government to find impersonation – but it “decided not to renew the contract” after the BBC exposed evidence of fraud at two of UK-based centres using the software. ETS blamed “dishonest activities of third-party contractors”. It seems the expert witness blamed ETS.
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Postscript: Bill Campbell, 1940-2016 » The New Yorker

Ken Auletta looks back on Campbell’s life as a mentor and advisor, which includes this fascinating tidbit:

»Google relied on Campbell to sort out tempests caused by imperial engineers burdened by oversized egos that prevented them from collaborating. This happened with Andy Rubin, the entrepreneur who created Android and built it into a resounding Google success. The Android team under Rubin was massive. But, as I learned through numerous interviews while writing a book about the company and in later conversations with Google executives, Rubin tended to trust only members of his élite team, and fought with other top executives, including such original Google employees as Salar Kamangar, who supervised YouTube, and Alan Eustace, the head of engineering. The weekly meetings of senior Google executives were filled with tension and discord. Executives became so dispirited by what they saw as Rubin’s dominance that they threatened to quit. Campbell advised Larry Page to make a choice, and to the relief of senior executives Page chose to remove Rubin. Campbell had earlier warned Page that Marissa Mayer, the talented engineer who went on to become the CEO of Yahoo, had a similar my-way-or-the-highway approach, which also led to her demotion to a position where she no longer reported to the CEO. Campbell knew that a lack of empathy often translated into an inability to listen.

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Campbell had an outstanding ability to listen, as Auletta shows. Clearly he will be sorely missed.
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Opera now has a totally free and unlimited built-in VPN » Gizmodo

Jamie Condliffe:

»The new feature is available in the latest developer version of the Opera browser for Windows or OS X. You just go to Settings on Windows or Preferences on a Mac, then toggle the VPN on in the Privacy & Security section. Bingo, you’re browsing over a virtual private network and you mask your IP address to dodge firewalls so that you can view content that you’re unable to from your current country or office. As well as all the other responsible things that a VPN can help you with.

«

“Virtual locations” only in the US, Germany and Australia at first. Which means this will become the “Netflix browser”, until Netflix blocks the Opera VPN IPs.

Even so, I have to wonder: what’s the catch? How does Opera benefit from this? Running VPNs isn’t free, or trouble-free. Am I the only person who has this reaction when free stuff is proffered?
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Xiaomi sees sales shrink in Q1 2016 » Tech In Asia

Erik Crouch:

»Xiaomi sold 14.8m smartphones globally in the first quarter of 2016, a notable decline from 17.5m in the last quarter of 2015.

The new figure comes from research by IHS Technology, and the Q4 number from Strategy Analytics. Tech in Asia reached out to Xiaomi about these numbers, and the company declined to comment.

The number shows that Xiaomi’s slowing growth in 2015 is turning into its worst nightmare in 2016: falling sales.

Xiaomi sold 70 million smartphones last year.

These aren’t official Xiaomi statistics, and reports compiled by research firms are best treated as estimates. But even providing for a hefty margin of error – and keeping in mind that Xiaomi has said it wants to move away from “goals such as smartphone sales” and isn’t likely to publish Q1 stats – the figures show a company that will need to improve its numbers if it aims to grow its smartphone department at all this year.

«

Sequential quarter comparisons (especially from 4Q to 1Q) are rarely meaningful, but the year-on-year comparison is still down: Xiaomi shipped 15.3m in Q1 2015, from the figures I have.
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Errata, corrigenda and ai no corrida: none notified.

Start up: EC v Android?, the human chatbots, Metallica v YouTube, Wall Street’s new mortgage con, and more

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Guess what the priciest search ad keywords in the UK are associated with. Photo by Javmorcas on Flickr.

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A selection of 8 links for you. Be ineffable. I’m charlesarthur on Twitter. Observations and links welcome.

EU prepares for Android crackdown » FT.com

Christian Oliver and Murad Ahmed:

»The EU has given its strongest signal to date of its intent to crack down hard on Google’s mobile operating system, comparing an imminent antitrust case against Android to Brussels’ epic confrontation with Microsoft a decade ago.

People involved in the case said that EU regulators were very close to opening a long-expected new front in their showdown with Google, which has already been hit with charges that it abused its dominance of online searches.

A second charge sheet, in relation to Android, is almost finalised. Margrethe Vestager, competition commissioner, would probably be ready to deliver it as early as this week, the people said, although the timing could not be confirmed.

Ms Vestager said on Monday that she was concerned that Google could be unfairly taking advantage of consumers’ desire to have pre-installed apps, ready for use as soon as “we take a new smartphone out of its box”. This could stifle innovation by keeping fledgling app makers and service providers out of the market.

“Our concern is that, by requiring phonemakers and operators to preload a set of Google apps, rather than letting them decide for themselves which apps to load, Google might have cut off one of the main ways that new apps can reach customers,” she said in a speech in the Netherlands.

Explaining her logic, she alluded to the European Commission’s landmark battle with Microsoft, which lasted years and culminated in 2007 with combined fines of more than €2bn.

«

Very like the search charges (which were filed a year ago, and absolutely nothing has happened). Except that 1) Google really did manipulate search results to keep out rivals 2) phonemakers have always been able to use AOSP and then fill it in with apps – as happened with the Nokia X. I don’t think the Android case is as strong as the search case.
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The top 100 most expensive keywords in the UK: new research » Search Engine Watch

Chris Lake:

»Back in the day, around 2003, somebody asked me a question regarding paid search: “Do you know what the most expensive keyword is on Google Adwords, and how much it costs?”

I made a bunch of guesses, gradually increasing the amount I thought it might be acceptable to pay every time somebody clicks on an ad. £20? No? £30? Surely not!

The grand reveal was that I was horribly wrong, and that some advertisers were paying “about £70 a click” for the term ‘mesothelioma’, which is a type of cancer associated with exposure to asbestos. It was immediately apparent that legal firms would spend that kind of money because they were hunting for big ticket compensation lawsuits.

Roll forward to the present day and I wondered how things had changed, as Google’s revenues have grown to more than $67bn globally and keyword inflation is a big deal in a lot of sectors.

The good folks at SEMrush provided me with a huge list of the most expensive keywords in five countries, and for my first piece of research I’ve focused on the UK.

I had 2,000 keywords to analyse (from its database of 12m in the UK) and here are the top results…

«

Now it’s gambling which leads the pack; gambling-related keywords make up 67 of the 100 most expensive key word searches.

In other words, if you’re using Google services for free in the UK (and who isn’t?), then gambling helps pay for it through the expensive keyword ads. The next ones? Financial spread betting and day trading; “big data” and cloud services; business-to-business (especially cheap electricity); and legal compensation. Gambling, finance (or gambling finance), tech, legal and B2B complete the 100.

Would love to know what percent of total AdWord revenues come from each category, and what percentage the top 100 represent.
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The humans hiding behind the chatbots » Bloomberg

Ellen Huet:

»[Willie] Calvin joined X.ai [which offers an email chatbot “Amy” which sets up appointments in response to emails] in December 2014 just a few months after graduating from the University of Chicago with a public policy degree. He was under the impression that his $45,000 annual salary job as an AI trainer would be half product development and half reviewing the algorithm’s accuracy. He said he was asked, as part of the job application, to write a one-page essay on why automation would be good for jobs and workers. X.ai declined to comment on specific hiring practices.

He was excited at the chance to do product development at a tech startup, but once he started work, he said he found that the product part of the job never materialized. Instead, Calvin said he sometimes sat in front of a computer for 12 hours a day, clicking and highlighting phrases. “It was either really boring or incredibly frustrating,” he said. “It was a weird combination of the exact same thing over and over again and really frustrating single cases of a person demanding something we couldn’t provide.” Kristal Bergfield, who oversees X.ai’s trainers, said that that the job has evolved over time and entails hard work. “We’re building something that’s entirely new,” she said. “It’s an incredibly ambitious thing, and so are the people who work here.”

«

Still, on the plus side, it means that robots aren’t going to take our jobs. Downside: our jobs will become subsidiary to those of robots.
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Metallica manager: ‘YouTube is the devil’ » BBC News

Mark Savage:

»Peter Mensch, the manager of bands including Metallica, Red Hot Chili Peppers and Muse, says YouTube is killing the record industry.

“YouTube, they’re the devil,” he told a BBC Radio 4 documentary on the music business. “We don’t get paid at all.”

He said the site’s business model, in which artists make money by placing ads around their music, was unsustainable.

“If someone doesn’t do something about YouTube, we’re screwed,” he said. “It’s over. Someone turn off the lights.”

Mensch’s arguments echo concerns raised in the annual report of the International Federation of the Phonographic Industry (IFPI), which was released last week.

It said there was widening “value gap” between the volume of music consumed on free, “user-upload” services – including YouTube, Daily Motion and Soundcloud – and the amount of revenue they generate for the industry.

An estimated 900 million consumers on these sites resulted in revenue of $634m (£447m) in 2015. By contrast the world’s 68 million paying music subscribers generated about $2bn (£1.4bn).

«

Once again, Metallica is OK (as they were when they were suing Napster in 2000) but it’s the other, mid-tier bands that will be missing out. Streaming is a terrible business model, but YouTube makes it look like a goldrush.
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Sony says Kumamoto plant not main site for smartphone components » Reuters

Makiko Yamazaki:

»Sony Corp said on Monday that its image sensor plant in Kumamoto, which has been shut since earthquakes hit southern Japan last week, makes components mainly for digital cameras.

Sony’s plant in Nagasaki, which resumed full operations on Sunday, is the company’s major production facility for image sensors for smartphones, it said.

The company said it had yet to decide when to restart the Kumamoto plant.

There had been concerns that plant shut downs because of the earthquakes could affect production of Apple Inc’s iPhones, including the iPhone 7.

“The impact of the Kumamoto plant suspension on Apple is expected to be limited,” Hiroyuki Shimizu, principal research analyst at Gartner, said.

«

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Wall Street veterans bet on low-income home buyers » NYTimes.com

Alexandra Stevenson and Matthew Goldstein:

»As the head of Goldman Sachs’s mortgage department, Daniel Sparks helped make the bank more than a billion dollars betting against the market as housing prices began to crash in 2007.

Today, he is betting on home buyers who no longer qualify for mortgages in the fallout of that housing crisis.

Shelter Growth Capital Partners, an investment firm Mr. Sparks founded in 2014 with two other former Goldman Sachs executives, has been buying homes that were foreclosed on during the financial crisis and later resold to buyers under long-term installment contracts.

The firm has bought just over 200 homes from Harbour Portfolio Advisors, a Dallas investment firm that has specialized in selling homes to lower-income buyers through what is known as a contract for deed. In these deals, a seller provides the buyer with a long-term, high-interest loan, with the promise of actually owning the home at the end of it.

These contracts, a form of seller financing, have ballooned in recent years as low-income families unable to get traditional mortgages have turned to alternate ways to buy homes.

The homes are often sold “as is,” in need of costly repairs and renovations, and many of the transactions end in eviction when buyers fall behind on payments.

«

So poorer would-be buyers are screwed once again because although money is cheaper than it has ever been (and so the loans don’t have to be high-interest; the houses aren’t going to run away), they are – yet again – the marks in the new shell game being played by Wall Street.
link to this extract

 

Hacking your phone » CBS News

Sharyn Alfonsi spoke to a team of German hackers who have found a flaw in SS7, aka Signalling System 7, the phone protocol for voice calls and text – and had a demo of how they could hack into her call to a congressman Ted Lieu, who is knowledgeable about technology, by knowing the number for the iPhone that CBS had provided to Lieu :

»[Karsten] Nohl told us the SS7 flaw is a significant risk mostly to political leaders and business executives whose private communications could be of high value to hackers. The ability to intercept cellphone calls through the SS7 network is an open secret among the world’s intelligence agencies — -including ours — and they don’t necessarily want that hole plugged.

“We live in a world where we cannot trust the technology that we use.”

Sharyn Alfonsi: If you end up hearing from the intelligence agencies that this flaw is extremely valuable to them and to the information that they’re able to get from it, what would you say to that?

Rep. Ted Lieu: That the people who knew about this flaw and saying that should be fired.

Sharyn Alfonsi: Should be fired?

Rep. Ted Lieu: Absolutely.

Sharyn Alfonsi: Why?

Rep. Ted Lieu: You cannot have 300-some million Americans– and really, right, the global citizenry be at risk of having their phone conversations intercepted with a known flaw, simply because some intelligence agencies might get some data. That is not acceptable.

«

link to this extract

 

Investigating the algorithms that govern our lives » Columbia Journalism Review

Chava Gourarie:

»[Algorithms are] also anything but objective. “How can they be?” asks Mark Hansen, a statistician and the director of the Brown Institute at Columbia University. “They’re the products of human imagination.” (As an experiment, think about all of the ways you could answer the question: “How many Latinos live in New York?” That’ll give you an idea of how much human judgement goes into turning the real world into math.)

Algorithms are built to approximate the world in a way that accommodates the purposes of their architect, and “embed a series of assumptions about how the world works and how the world should work,” says Hansen.

It’s up to journalists to investigate those assumptions, and their consequences, especially where they intersect with policy. The first step is extending classic journalism skills into a nascent domain: questioning systems of power, and employing experts to unpack what we don’t know. But when it comes to algorithms that can compute what the human mind can’t, that won’t be enough. Journalists who want to report on algorithms must expand their literacy into the areas of computing and data, in order to be equipped to deal with the ever-more-complex algorithms governing our lives.

«

As Gourarie points out, there aren’t yet any journalists with the title of “Algorithm correspondent”, but maybe there should be; algorithms are (going to be? already?) as powerful as politicians, but less easy to interview. Though in the case of Google search and Facebook’s News feed, no single person, nor even group of people, quite knows for certain why they do what they do. What does that mean?
link to this extract

 

Errata, corrigenda and ai no corrida:

Start up: the iCloud celeb hack, a Chinese ransom?, the real terrorist phone, Trump as Berlusconi, and more

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“Hey, Miss Lawrence! My name’s iCloud! What’s your password?” Photo by YourWay Magazine on Flickr.

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The disturbingly simple way dozens of celebrities had their nude photos stolen » Fusion

Kashmir Hill:

»According to court documents, Collins gained access to the intimate images of nude celebrities via a disturbingly simple technique: phishing.

Though many people assumed that the hacker took advantage of an iCloud vulnerability to brute-force his way into the celebrities’ accounts, the government makes no mention of that. Instead, it says that Collins hacked over 100 people by sending emails that looked like they came from Apple and Google, such as “e-mail.protection318@icloud.com,” “noreply_helpdesk0118@outlook.com,” and “secure.helpdesk0019@gmail.com.” According to the government, Collins asked for his victims’ iCloud or Gmail usernames and passwords and “because of the victims’ belief that the email had come from their [Internet Service Providers], numerous victims responded by giving [them].”

Celebrities really need better computer security advisers. If a dedicated enough attacker comes at you, it’s hard to avoid being compromised, but it helps immensely to turn on two-factor authentication for your online accounts. That way a person needs not just your password but a code sent to your phone to get into your account.

Once Collins had their credentials, says the government, he went through their email accounts looking for nude photos and videos. The government says that Collins got into approximately 50 iCloud accounts and 72 Gmail accounts this way, most of them belonging to celebrities. He “accessed full Apple iCloud backups belonging to numerous victims, including at least 18 celebrities” and “used a software program to download those full Apple iCloud backups.”

Ironically, that program was likely one that’s used by law enforcement to get evidence from phones.

«

The idea that someone had used a cutting-edge brute-force attack to break into the passwords always seemed like vapour trails to me. Social engineering is the Occam’s Razor explanation (and also the Hanlon’s Razor explanation) to stuff like this.
link to this extract

 

Exclusive: Chinese hackers behind U.S. ransomware attacks – security firms » Reuters

Joseph Menn:

»executives of the security firms have seen a level of sophistication in at least a half dozen cases over the last three months akin to those used in state-sponsored attacks, including techniques to gain entry and move around the networks, as well as the software used to manage intrusions.

“It is obviously a group of skilled of operators that have some amount of experience conducting intrusions,” said Phil Burdette, who heads an incident response team at Dell SecureWorks.

Burdette said his team was called in on three cases in as many months where hackers spread ransomware after exploiting known vulnerabilities in application servers. From there, the hackers tricked more than 100 computers in each of the companies into installing the malicious programs.

The victims included a transportation company and a technology firm that had 30 percent of its machines captured.

Security firms Attack Research, InGuardians and G-C Partners, said they had separately investigated three other similar ransomware attacks since December.

Although they cannot be positive, the companies concluded that all were the work of a known advanced threat group from China, Attack Research Chief Executive Val Smith told Reuters.

«

link to this extract

 

Reformed LulzSec hacktivist joins payments firm » The Register

John Leyden:

»A payments firm has hired reformed LulzSec hactivist Mustafa Al-Bassam (formerly known as tFlow) for a new blockchain research project.

London-based payments group Secure Trading has taken on Al-Bassam to help develop a platform that applies the verification benefits of blockchain technology in order to improve the visibility and security of online payments. Codenamed “Trustery”, the project aims to create a commercial platform.

Secure Trading approached Al-Bassam, who agreed to work for the firm part time while continuing his computer science degree at King’s College London.

«

Smart move: al-Bassam is a clever guy.
link to this extract

 

Crypto-ransomware spreads via poisoned ads on major websites » Tripwire

Graham Cluley:

»Some of the world’s most popular news and entertainment websites have been spreading poisoned adverts to potentially hundreds of thousands of visitors, putting innocent readers at risk of having their computers hit by threats such as ransomware.

Famous sites which displayed the malicious ads and endangered visiting computers include MSN, bbc.com, the New York Times, AOL and Newsweek.

As a result, researchers at Malwarebytes say that they saw a “huge spike in malicious activity” over the weekend.

Security analysts at TrendLabs and Malwarebytes report that the attack is one of the largest ransomware campaigns seen in years, taking advantage of a recently-updated version of the notorious Angler Exploit Kit to spread malware.

Just last month the Angler Exploit Kit was found to be targeting PCs and Macs after it was updated to take advantage of a known vulnerability in Microsoft Silverlight…

…It seems glaringly apparent to me that there is so much malicious advertising on the internet that anytime you surf even legitimate sites without an ad blocker in place, you are putting your computer’s data at risk.

«

link to this extract

 

Why is the Nokia 105 cellphone a favourite among ISIS fighters? » NBC News

Alexander Smith:

»The must-have cellphone for ISIS fighters in Iraq doesn’t have apps or a camera, and ships for less than $30.

The small and simple Nokia model is frequently used as a trigger device to set off ISIS’ improvised explosive devices, known as IEDs, according to a Conflict Armament Research report released last month.

As part of a study looking at civilian components in ISIS bombs, CAR documented 10 of the phones captured from members of the terror group in Iraq in December 2014.

The research showed the terror group “consistently” used the Nokia 105 above all others “in the manufacture of a specific type of remote controlled IED.”

Two phones are used in the bomb-making process: one to call the other, which then sends a signal to a circuit board and sparks the explosion.

There are plenty of other cheap, durable phones with long battery life that ISIS fighters could use — and yet this particular model, also branded as the Microsoft Mobile 105 after the tech giant bought Nokia in 2014, shows up again and again.

«

I’m sure there’ll be widespread condemnation of Microsoft for aiding terrorists any moment now.
link to this extract

 

Why Sony will win first in VR » Jon Peddie Research

The aforenamed Mr Peddie:

»Now that Oculus has revealed its consumer version of the Rift HMD, consumers can start planning how they might engage with VR, and they have a choice—a DIY rig with a PC and Rift, or a turn-key system with Sony.

Sony’s HMD will be about 30% less expensive than the Oculus HDM. And Sony buyers probably already have a PS4, and possibly PS4 accessory controllers. Most importantly, Sony also has content.

«

So, first couple of rounds to Sony.
link to this extract

 

The best things in Android are free — with in-app purchases » Medium

The iA team:

»A year ago, iA Writer for Android entered the Play Store. So far, we have sold a little more than 6’000 apps. At a price of 1 to 5 Dollars, this doesn’t cover much more than one month of app development. So we decided to go free and add in app purchases later.

We are not sure why apps sell in the Apple universe but not in the Android world. It just seems to be a hard cold fact:


Worldwide App Downloads by Store vs Worldwide App Revenue by Store

Looking at the sales numbers of paid Android apps it becomes apparent that plain paid offerings just do not get traction on Android. Why? We are not sure. Here is what we have learned.

«

There’s a point in there about price elasticity which is remarkable. But also that stuff with an upfront price tag does not sell.
link to this extract

 

Windows 10 Store will continue to support bitcoin » Softpedia

Bogdan Popa:

»while there was a lot of speculation online regarding the removal of Bitcoin support for new deposits in the Windows Store – some people said it’s because of the limited adoption of Bitcoin – it appears that the change made to the FAQ page was just “a mistake.”

In other words, Microsoft will continue to support Bitcoin in the Windows Store, so you can keep on using the digital currency for new deposits. A statement we received from a Microsoft spokesperson a few minutes ago provides us with some details on this:

“We continue to support Bitcoin for adding money to your Microsoft Account which can be used for purchasing content in the Windows and Xbox stores. We apologize for inaccurate information that was inadvertently posted to a Microsoft site, which is currently being corrected.”

«

Would love to know what volume of transactions they see.
link to this extract

 

Top NFL official acknowledges link between football-related head trauma and CTE for first time » ESPN

Steve Fainaru:

»The NFL’s top health and safety officer acknowledged Monday there is a link between football-related head trauma and chronic traumatic encephalopathy, or CTE, the first time a senior league official has conceded football’s connection to the devastating brain disease.

The admission came during a roundtable discussion on concussions convened by the U.S. House of Representatives’ Committee on Energy and Commerce. Jeff Miller, the NFL’s senior vice president for health and safety, was asked by Rep. Jan Schakowsky, D-Ill., if the link between football and neurodegenerative diseases such as CTE has been established.

“The answer to that question is certainly yes,” Miller said.

«

A bit like boxing: does it mean people will be put off the potentially fabulous riches? But equally: will parents be less likely to put their children into it? The public admission is important.
link to this extract

 

Teenager wins $250,000 in biggest drone race yet » The Verge

Rich McCormick:

»The sport has already attracted investment from the likes of NFL team owners, but it still has some way to go before it breaks into the mainstream. Particularly difficult is the question of how to actually observe the races. Drone pilots fly their racing craft in first-person, using special headsets to see as the drone sees, but for observers the footage can feel — and sound — like being strapped to the front of a particularly excitable wasp. A second camera following the action might help human brains contextualize the movements in space, but some of the nascent racing leagues set their courses inside buildings, making a chase camera’s operation difficult. Still, though, the speed of the craft and the deftness of his control make watching [15-year-old winner] Luke [Bannister]’s victory from Dubai an exhilarating — if slightly nauseating — experience.

«

Dubai, of course.
link to this extract

 

Music streaming has a nearly undetectable fraud problem » Quartz

Amy X Wang:

»For an in-depth look into how click fraud works, there’s Sharky Laguana’s thorough explanation here. Laguana—a music industry veteran who now owns a rental company—tells Quartz it certainly wouldn’t be hard to run the “perfect” scheme to con Spotify. First, set up a couple hundred fake artists. Next, upload some auto-generated tunes—mediocre dance music is particularly easy to “produce” online—and just make sure your bots click on an array of songs both real and fake, so no one gets suspicious. (He uses Spotify as an example because of its size, but the scheme could theoretically work for any music subscription service.)

“If it’s done properly, it’s nearly impossible to detect,” says Laguana. “There’s no way to know why somebody chose to click on something.”

«

Should we just turn off the internet?
link to this extract

 

Donald Trump, America’s own Silvio Berlusconi » The Intercept

Alexander Stille:

»Neither Trump nor Berlusconi has a real political program; what they are selling is themselves. Berlusconi used to say that what Italy needs is more Berlusconi. I recall a very telling moment in his first election campaign: During a TV debate, his opponent, the economist Luigi Spaventa, was pointing out the holes and inconsistencies in Berlusconi’s economic program, and Berlusconi stopped him mid-sentence and pointed to the victories of his soccer club, AC Milan: “Before trying to compete with me, try, at least, winning a couple of national championships!” The remark had the air of unassailable truth — however irrelevant it might be to Berlusconi’s fitness to govern. Similarly, when asked how he is going to get Mexico to pay for a giant wall between its country and ours, Trump simply responds, “Don’t worry, they’ll pay!”

Yet there is another element — a systemic one — that helps explain why Italy and the U.S. are the only major democracies in which a billionaire circus has raised its tent: the almost total deregulation of broadcast media.

«

The latter matters, as Stille explains. (Via @papanic.)
link to this extract

 

Errata, corrigenda and ai no corrida:

Start up: Google’s crash, Hive overheats, Vive or Hololens?, BB10 withers, the backdoor test, and more

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Facebook is not good at taking down fake profiles. Why not? Photo by gruntzooki on Flickr.

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Judge: US can’t force Apple to provide encrypted iPhone data » Associated Press

Larry Neumeister and Tami Abdollah on the decision in a New York case – not the “terrorism” case – where the FBI wants to unlock an iPhone which, yes, has a passcode:

»[Judge] Orenstein concluded that Apple is not obligated to assist government investigators against its will and noted that Congress has not adopted legislation that would achieve the result sought by the government.

“How best to balance those interests is a matter of critical importance to our society, and the need for an answer becomes more pressing daily, as the tide of technological advance flows ever farther past the boundaries of what seemed possible even a few decades ago,” Orenstein wrote. “But that debate must happen today, and it must take place among legislators who are equipped to consider the technological and cultural realities of a world their predecessors could not begin to conceive.”

A Justice Department spokesman said they were disappointed in the ruling and planned to appeal in the coming days. Apple and their attorneys said they were reading opinion and will comment later.

In October, Orenstein invited Apple to challenge the government’s use of a 227-year-old law to compel Apple to help it recover iPhone data in criminal cases.

«

link to this extract

 

Google says it bears ‘some responsibility’ after self-driving car hit bus » Reuters

David Shepardson:

»The crash may be the first case of one of its autonomous cars hitting another vehicle and the fault of the self-driving car. The Mountain View-based Internet search leader said it made changes to its software after the crash to avoid future incidents.

In a Feb. 23 report filed with California regulators, Google said the crash took place in Mountain View on Feb. 14 when a self-driving Lexus RX450h sought to get around some sandbags in a wide lane.

Google said in the filing the autonomous vehicle was traveling at less than 2 miles per hour, while the bus was moving at about 15 miles per hour.

The vehicle and the test driver “believed the bus would slow or allow the Google (autonomous vehicle) to continue,” it said.

But three seconds later, as the Google car in autonomous mode re-entered the center of the lane, it struck the side of the bus, causing damage to the left front fender, front wheel and a driver side sensor. No one was injured in the car or on the bus.

«

Yeah, if you did that in a driving test, you’d get failed. It’s not the bus’s fault if you try to enter its right of way.
link to this extract

 

Sony’s latest design experiment: a remote control for your entire life » Co.Design

Mark Wilson:

»The best Sony is weird Sony. It’s the Sony that makes robot dogs and glowing, rolling party balls. It’s the Sony that’s selling something you might not necessarily buy today but that lays the foundation for something you’ll need tomorrow.

Take the HUIS remote (it stands for Home User InterfaceS). It’s a $250 e-ink touchscreen display, like a Kindle Paperwhite, but it’s also a programmable universal remote, like a Logitech Harmony. Via infrared and Bluetooth, it can control anything from your cable box to your smart thermostat.

The e-ink screen solves the biggest problem with using your smartphone—or any other LCD—as a remote. Rather than taking all the incremental steps involved in turning on your phone and opening an app to make changes, its power-sipping display means its screen can stay turned on for a month between recharges.

«

Using the above definition, “best Sony” is also “fabulously unprofitable and unable to find market demand for a product Sony”. The idea of an e-ink touchscreen for things you don’t need to control often is nice, though. It’s just that Sony can screw up software like pretty much nobody else. Remember its music player software? If you can’t, lucky you.
link to this extract

 

HTC Vive: home VR for under £700 – if you have a computer to run it with » The Guardian

Alex Hern:

»HTC’s Vive virtual reality headset finally has a UK price: a hefty £689.

So, what do you get if you splash out a month’s rent (in London at least)? There’s the headset itself, co-created by gaming company Valve, which has two 1080 x 1200 screens offering a 110-degree viewing area, as well as a front-facing camera for augmented reality features and a plethora of other sensors for head- and motion-tracking.

The headset also comes with three apps: the tongue-in-cheek “Job Simulator”; Northway Games’ Fantastic Contraption, a 3D VR update of an old Flash-based physics game; and the Google-developed Tilt Brush, which lets you paint in 3D space.

Unlike the Facebook-owned Oculus, which retails for $600 (without a specific UK price), the Vive will also ship with two wireless VR controllers, and “room-scale” movement sensors, capable of tracking an area 5 sq m. The Oculus, with its more stripped-back offering, comes with an Xbox 360 controller – although the Oculus Touch controllers will be arriving later this year – and a movement set-up that can handle a 1.5m by 3m area. The Oculus does, however, include built-in audio while the Vive will require a separate pair of headphones.

«

link to this extract

 

Kiddle: The child-friendly search engine has no affiliation with Google » Alphr

»Kiddle.co is a search engine that uses Google’s results, but it’s not a Google product.

A glance at the homepage makes it pretty easy to see how confusion would arise. To put it charitably, the site’s owners haven’t exactly gone out of their way to set the two apart:

What we actually have here is a search engine that uses Google’s Custom Search bar and human editors to filter out grim results with, I think it’s fair to say, patchy results…

…In theory, Kiddle offers a combination of safe search, results tailored for children (positions 1-3 are safe sites written for children, 4-7 come from safe sites not written for children but accessible, and 8+ are just safe sites) and large clear fonts.

«

In reality: nope. And the ads are Google’s, and unfiltered, so you can see how that could quickly go south.
link to this extract

 

Super-cheap Raspberry Pi computer gains very useful new features » Fortune

David Meyer:

»Until now, those wishing to add Wi-Fi and Bluetooth functionality to the Pi had to buy separate dongles to plug into its USB ports — we are talking about a $35 computer after all, and this was one way to keep the cost down.

However, these wireless functions are now built right into the Raspberry Pi 3 Model B, making it an even cheaper proposition for those wanting a very basic web-surfing machine, a cheap home server or the basis for a home-brewed Internet-of-things project. (Though those wanting the very cheapest Internet-of-things computer may want to opt for the $5 Pi Zero.)

«

link to this extract

 

Microsoft reveals HoloLens hardware specs » The Verge

Tom Warren:

»Microsoft is letting developers pre-order the HoloLens development edition today, but it’s also detailing exactly what’s inside the headset. HoloLens is fully untethered and self-contained, which means you do not need a PC or phone to use it. Microsoft has built an entire Windows 10 device into a headset, using a custom-built Microsoft Holographic Processing Unit (HPU) and an Intel 32 bit processor.

Microsoft has a variety of sensors inside the HoloLens, including an inertial measurement unit, an ambient light sensor, and four environment understanding cameras. These combine with a depth sensing camera to allow HoloLens to map spaces. Microsoft also has a 2-megapixel HD camera to capture videos and photos. Four microphones inside the headset are used to pick up voice commands from users…

…Microsoft says the entire HoloLens headset will weigh no more than 579 grams, and the battery will run for around two or three hours of active use. HoloLens is fully functional when it’s charged over Micro USB, and the device will also have a standby time of two weeks.

«

Yours for $3,000. Includes carry case.
link to this extract

 

Google Maps brings its “Add A Pit Stop” feature to iOS » TechCrunch

Sarah Perez:

»Last fall, Google announced the addition of a long-requested feature to Google Maps, which allowed users to – finally! – add a stop along their current route. That way you could route your way to a gas station or restaurant ahead of your final destination. However, at launch, the feature was only available on Android devices. Today, Google says the feature is now available on all iOS devices as well, and is available in any country where Google Maps offers navigation – or more than 100 countries worldwide.

The feature itself is something users of the Google-owned navigation app Waze have had for some time, but was not yet available in Google Maps.

It’s surprising that it took Google so long to add such a basic feature to its navigation app. After all, hitting up a pit stop while on your way somewhere else is the norm – but, before, you would have to route your way to the pit stop, then start a new route from the pit stop to your destination. And by creating two navigation sessions, it could be hard to see which gas station, restaurant, or other stop would incur the least amount of extra driving.

«

Given how often one wants to do something like this, solving it must be a really difficult routing problem, given it took until last October to arrive on Google Maps. Or else it’s a very difficult UI problem.
link to this extract

 

WhatsApp to end support for all BlackBerry versions by end of 2016 » CrackBerry.com

John Callaham:

»WhatsApp, the popular cross-platform messaging service, has decided to cut support for a number of those platforms. That includes all versions of BlackBerry OS, including BlackBerry 10, by the end of 2016.

WhatsApp will also end support for Nokia S40, Nokia Symbian S60, Android 2.1, Android 2.2 and Windows Phone 7.1 by the end of the year. From the WhatsApp blog:

»

While these mobile devices have been an important part of our story, they don’t offer the kind of capabilities we need to expand our app’s features in the future. This was a tough decision for us to make, but the right one in order to give people better ways to keep in touch with friends, family, and loved ones using WhatsApp. If you use one of these affected mobile devices, we recommend upgrading to a newer Android, iPhone, or Windows Phone before the end of 2016 to continue using WhatsApp.

«

«

BB10 is, by a mile, the youngest of those operating systems. Of course commenters at Crackberry are *delighted*.
link to this extract

 

Hive customers hot up in 32°C heatwave glitch » The Memo

Kitty Knowles:

»Hive, which is run by British Gas, received over 30 complaints on Saturday, with many people fearing an unsightly spike in their bills this month.

The company has not yet confirmed how many of its 300,000 users may have been affected.

It said in a statement: “We are aware of a temporary glitch affecting a very small number of customers, where a certain sequence of commands in the Hive iOS app can cause the thermostat temperature to rise to 32°C.

“Any customers seeing this can very easily and immediately fix it by simply turning the thermostat down using the app, web dashboard or the thermostat itself.

“No-one needs to worry about their temperature being too high because the rest of the app works as normal. Meanwhile, we are working on a software update which should be available soon.”

«

So will people get refunds? Hive can’t read meters remotely, but this is BG’s fault so it should give a discount. The Internet of Overheated Things. Don’t you just love the future?
link to this extract

 

What can player profiling tell us about games? » Eurogamer.net

Keith Stuart:

»Imagine you have just hit ‘start’ on a new first-person video game. You find yourself in a room facing a doorway with ‘this way’ written in large letters over the top. You take a very quick look around and notice a few closed chests and cupboards beside you and then a door behind you marked ‘no entry’. You turn back toward the first door. Without thinking, answer the following question: what do you do now?

«

A really fascinating exploration of the different types of player one tends to find in any games theatre. Which are you? Depends on your answer to that question.
link to this extract

 

Dear Facebook » Cogdog

Alan Levine’s photos were used to create a fake Facebook account – he already has one – which was then used to scam people. Despite it being reported, Facebook did nothing about it:

»Facebook’s Help page for reporting fake accounts clarifies what kinds of accounts it does not allow

»

We don’t allow accounts that:

• Pretend to be you or someone else
• Use your photos
• List a fake name
• Don’t represent a real person

«

Why is Facebook allowing “Malle Gotfried” to use my photos? Why is Facebook’s highly touted facial recognition system not matching the profile photo “he” is using to he very one that has been on my Facebook profile since November 2015?

Again, why is Facebook not removing accounts it clearly says it does not allow? Why is there no burden on proof of “Malle Gottfried” to prove their identity? Why does Facebook make it so easy for Nigerian scammers to create fake accounts using photos of other people? Why is Facebook not answerable to these questions?

I have reported this account several times, so has my sister, and friends who know me. And every time Facebook replies stating that the creation of fake profiles using my photo does not violate Facebook’s Community Standards – what kind of community standards protect the rights of scammers to create fake profiles used in romance scams?

Why? Why Why?

«

(Thanks Tony Hirst for the pointer.)
link to this extract

 

The three-prong backdoor test » Zdziarski’s Blog of Things

Jonathan Zdziarski on the suggestions (by some) that hey, Apple’s and Microsoft’s and Google’s “software updates” are really backdoors because, hey, they can change stuff:

»Any kind of automated update task on a computer is capable of introducing new code into the environment, but that is not what constitutes a backdoor. I’ve thought about this at length, and come up with a three-prong test to determine whether or not a mechanism is a backdoor. There has thus far not been a widely accepted definition of what a backdoor is, and so I hope you’ll consider its adoption into best practices for making such determinations, and welcome your input. The three prongs I propose are “consent”, “intent”, and “authenticity” (or: control).

«

In the hydra-headed debate around Farook’s damn iPhone 5C, Zdziarski has posed and answered some of the best questions. If you’re interested in security topics, I highly recommend his blog.
link to this extract

 

Errata, corrigenda and ai no corrida: none noted

Start up: Asus’s router screwup, slower smartphones, Ek speaks, the FBI’s other iPhones, hi – it’s Sony, and more

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ASUS settles FTC charges that insecure home routers and “cloud” services put consumers’ privacy at risk » Federal Trade Commission

»Taiwan-based computer hardware maker ASUSTeK Computer, Inc. has agreed to settle Federal Trade Commission charges that critical security flaws in its routers put the home networks of hundreds of thousands of consumers at risk. The administrative complaint also charges that the routers’ insecure “cloud” services led to the compromise of thousands of consumers’ connected storage devices, exposing their sensitive personal information on the internet…

…ASUS marketed its routers as including numerous security features that the company claimed could “protect computers from any unauthorized access, hacking, and virus attacks” and “protect [the] local network against attacks from hackers.” Despite these claims, the FTC’s complaint alleges that ASUS didn’t take reasonable steps to secure the software on its routers.

For instance, according to the complaint, hackers could exploit pervasive security bugs in the router’s web-based control panel to change any of the router’s security settings without the consumer’s knowledge…

…In February 2014, hackers used readily available tools to locate vulnerable ASUS routers and exploited these security flaws to gain unauthorized access to over 12,900 consumers’ connected storage devices.

«

Swingeing fine? No – just “a comprehensive security program subject to independent audits for the next 20 years.” Pfft.
link to this extract

 

Session with Daniel Ek / Feb 16, 2016 » Quora

Lots of questions and answers from Spotify’s founder/chief. I found this one interesting:

»

Q: How will you compete as Amazon, Google (incl. YouTube), Apple, etc. strengthen and expand the scope of their respective lock-in?

A: I believe in focus. All of the companies you mention have music as a hobby, a very small part of their overall business. We do one thing and try to do it really well. This means we have a company 100% dedicated to finding the right content, personalizing it for you and serving it up with partners who are specialized in what they do. The big platform companies don’t generally like partnering. We do. This opens up lots of doors. To put it another way, we are really focused on delivering the best possible music experience you can find. I’m not saying we don’t think about the competition – of course we do, it would be crazy not to. But we think about them more in terms of how to make Spotfy so easy, so fun, and so relevant for our users that whether you wait on lines for every new Apple device, get your groceries from Amazon Prime, or use every Google mail and workplace app, you still want to listen to music on Spotify because it’s the best experience there is.

«

link to this extract

 

Pirated App Store client for iOS found on Apple’s App Store » HelpNet Security

Zeljka Zorz:

»The app hasn’t been flagged as potentially dangerous by Apple’s strict code reviewers, most likely because the app was made to look like a simple app for learning English if a reviewer (or user) accessed the app from anywhere outside China, and showed its true face only for those located in China.

Also, it’s coded in the Lua programming language, and this allows the developers to update the app remotely and repeatedly without triggering Apple’s app review process.

The app was available for download in the App Store for over three and a half months (since October 30, 2015 to the end of last week), but has now been removed.

The researchers haven’t discovered any actual malicious functionality in the app, but given its capabilities, it should definitely be considered risky to use. They dubbed it ZergHelper, and discovered over 50 enterprise-signed versions of the app being distributed in the wild through alternative channels.

«

Enterprise certificates are still the biggest weak point for getting apps onto iPhones. This one was clever too in using geolocation, and Lua.
link to this extract

 

Justice Department seeks to force Apple to extract data from about 12 other iPhones » WSJ

Devlin Barrett:

»The letter, written last week from an Apple lawyer to a federal judge, lists the locations of those phone cases: Four in Illinois, three in New York, two in California, two in Ohio, and one in Massachusetts.

The letter doesn’t describe the specific types of criminal investigations related to those phones, but people familiar with them said they don’t involve terrorism cases. The 12 cases remain in a kind of limbo amid the bigger, more confrontational legal duel between the government and the company over an iPhone seized in the terror case in California, these people said.

«

How surprising that the other cases where the Department wants to do exactly the same aren’t about a high-profile mass shooting that has been framed as “terrorism”.

On another note, this story has prompted some excellent reporting. Such as the next one…
link to this extract

 

Secret memo details US’s broader strategy to crack phones » Bloomberg Business

Terrific scoop by Michael Riley and Jordan Robertson:

»In a secret meeting convened by the White House around Thanksgiving, senior national security officials ordered agencies across the U.S. government to find ways to counter encryption software and gain access to the most heavily protected user data on the most secure consumer devices, including Apple Inc.’s iPhone, the marquee product of one of America’s most valuable companies, according to two people familiar with the decision.

The approach was formalized in a confidential National Security Council “decision memo,” tasking government agencies with developing encryption workarounds, estimating additional budgets and identifying laws that may need to be changed to counter what FBI Director James Comey calls the “going dark” problem: investigators being unable to access the contents of encrypted data stored on mobile devices or traveling across the Internet. Details of the memo reveal that, in private, the government was honing a sharper edge to its relationship with Silicon Valley alongside more public signs of rapprochement.

«

link to this extract

 

Bitcoin miners back proposed timeline for 2017 hard fork » CoinDesk

Stan Higgins:

»A group of bitcoin miners constituting close to 80% of the network hashrate, as well representatives from exchanges, service providers and contributors to the Bitcoin Core development project, have proposed a development timeline for scaling the bitcoin network.

The statement’s release comes after a more than 18 hour-long meeting in Hong Kong that drew participants from China’s bitcoin mining community and members of the Bitcoin Core team.

Some of the letter’s signatories were party to a previous statement that voiced opposition to any “contentious hard fork” to the bitcoin network.

According the proposed timeline, Bitcoin Core contributors Matt Corallo, Luke Dashjr, Cory Fields, Johnson Lau and Peter Todd will produce and recommend code for a hard fork to the bitcoin network that would feature a block size increase. The code for this proposal is expected to be made available by July.

«

The picture accompanying the article shows that the group comprises 21 people. So much for bitcoin being decentralised: this group decides which way everything moves.
link to this extract

 

Punctuation in novels » Medium

Adam Calhoun:

»When we think of novels, of newspapers and blogs, we think of words. We easily forget the little suggestions pushed in between: the punctuation. But how can we be so cruel to such a fundamental part of writing?

Inspired by a series of posters, I wondered what did my favorite books look like without words.

Here’s Blood Meridian by Cormac McCarthy (left) and Absalom, Absalom! by William Faulkner.

«

A lovely idea. Hemingway turns out to be a radical.
link to this extract

 

Sony worms way into Ear with Xperia headset-cum-virtual assistant » Ars Technica UK

Mark Walton:

»As it dawns on smartphone makers that—after years of healthy upgrades—consumers are perfectly happy with their existing phone, they’ve started to pile on the features instead. LG has its wacky upgradable G5, Samsung has its Gear VR headset, and Sony… well, it’s got the Xperia Ear, a Bluetooth headset-cum-virtual assistant that it hopes will take away the need for everyone to keep pulling their smartphones out of their pockets.

You can take calls with Xperia Ear, send messages, get the latest traffic updates, and it’ll even send you directions using GPS (via the phone it’s paired with). None of that is particularly innovative as such, but the Ear’s USP is the way its packaged up into a neat, and arguably more reliable package that your traditional virtual assistant along the lines of Siri or Google Now. For instance, when a call comes in and you pick up the Ear, it has a proximity sensor that automatically answers the call and flings it to your earlobe.

If you’re stuck for the perfect cupcake recipe or want to know who invented the Burrito (sorry, I have the MWC hunger), the Ear can find that stuff out too via voice activated Internet searches. Again, this is functionality most people already have access to via their phone, but Sony hopes that by removing the need to pull out their phones altogether, and instead reach for the Ear, people will won’t be quite as shut out from the outside world.

OK, so the concept is clearly a strange one, and there’s evidence to suggest that such devices—like the similar Motorola hint—have struggled to find a market.

«

Can’t imagine why. You make it sound so… useful.
link to this extract

 

Google to shut down Google Compare products in US and UK on March 23 » Search Engine Land

Ginny Marvin:

»The company only recently began rebuilding the Compare product from the ashes of the Advisor program in the US. The single piece left standing from that initial effort was the credit card offering — savings accounts, CDs and mortgages had all discontinued. Compare for Auto Insurance launched just last March, starting in California. Then Google relaunched Compare for Mortgage quotes in November with Zillow and Lending Tree among the launch partners. Both of those relaunches had limited roll outs. In the UK, Google Compare has been running since 2012 for car insurance, mortgage rates, credit cards and travel insurance.

A Google spokesperson told Search Engine Land that while searches on these queries remained high, the product didn’t get the traction it hoped for and revenue was minimal. That’s in part due to the limited availability of the products in both the US and the UK.

«

Another one for the graveyard.
link to this extract

 

Double-digit smartphone market growth is over » Kantar Worldpanel

»Feature phone owners across markets are challenged in finding smartphones that offer what they consider a good value for money spent. They are unlikely to upgrade to a smartphone until they can no longer rely on their current device. While looking year over year might not be enough to see a clear trend, examining the past three years makes it clear that smartphone life cycles are getting longer.

In mature markets, the profitable high end of the market is saturated. In the US, the high-end segment, devices with an unsubsidized price of more than $500 represented 48% of sales in 2015, growing a mere 9% over 2014. In the EU5, where the high-end segment represented just 27% of sales, growth was commensurately lower than in the US, coming in at 6%.

What should the industry expect for 2016? According to Milanesi, 48% of smartphone owners in the EU5 are currently planning to upgrade their smartphone over the next 12 months. This number decreases to 46% in the US, and 28% in urban China. Consumer brand preference for their next device varies a little by region, but two brand names that remain prominent are Apple and Samsung.

«

link to this extract

 

Google + GSMA announcement on RCS is no gamechanger » Disruptive Wireless

Dean Bubley:

»From the announcement: “Operators have agreed to transition toward a common, universal profile based on the GSMA’s RCS specifications and an Android RCS client provided by Google.”

It’s belatedly throwing various independent RCS app providers under the bus, trying to make disparate RCS implementations actually work together. As with VoLTE, RCS has suffered a wide range of non-interoperable versions to date, which is rather embarrassing for an application that was mainly standardised for the purpose of interoperability, rather than user-utility.

That it’s failed to actually be interoperable, as well as failed to be useful & well-designed, is just another eaten brain in the 8-year zombie catastrophe of RCS.

What’s interesting is what’s not in the statement:

– No mention of messaging-as-a-platform, despite that being hinted at previously in RCS presentations I’ve seen. Given that WeChat, Facebook Messenger, WhatsApp and others are shifting to commerce/advertising “streams”, that’s a surprising omission.
– No current usage numbers for RCS. There’s vague pronouncements about “towards a billion users”, but no baseline of current DAUs/MAUs for “proper” RCS usage, not just SMS-replacement texting.
– It doesn’t mention the new RCS client being made mandatory in future Android builds. It just says it’s available. The PR is very operator-centric, which doesn’t seem to suggest that all OEMs will automatically implement it in new devices, especially where they’re sold through open-market channels.
– No reference to whether the client will be appearing on WiFi-only tablets, or other Android devices (cars, watches, Chromebooks etc)
– No mention of AT&T or Verizon in the press release, although there’s an AT&T speaker at MWC on stage with them apparently (link)
– No clear timelines or wholehearted commitment by Google “an important step forward in bringing a better messaging experience for Android users everywhere”
– No mention of Samsung, which also happened to have Mark Zuckerberg from Facebook keynoting its big press conference yesterday. Given Google is trying to wrest back control of Android from its OEMs’ influence, that’s not a good sign for Samsung+RCS
– No reference to the South Korean operators ditching Joyn recently.

It’s also still unclear exactly what the future RCS business/revenue model might look like. Although it references the Jibe platform for MNOs, it doesn’t rule out my previous hypothesis of “Android iMessage” either.

«

link to this extract

 

Errata, corrigenda and ai no corrida: none notified.

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

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1

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.
link to this extract

 

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?
link to this extract

 

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: Google’s search rejig, adblockers can’t Play, Sony to exit tablets?, Magic Leap’s big step, and more

Posted on by
2

No longer can you seek him here or there. Photo by abrinsky on Flickr.

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

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

Google search chief [Amit] Singhal to retire, replaced by AI exec » Bloomberg Business

Jack Clark:

“When I started [at Google in 2000], who would have imagined that in a short period of fifteen years, we would tap a button, ask Google anything and get the answer,” Singhal wrote in a Google+ post announcing his retirement. “My dream Star Trek computer is becoming a reality, and it is far better than what I ever imagined.”

With Giannandrea’s appointment, the technology may get smarter. The executive has overseen recent artificial intelligence efforts, including RankBrain, which saw Google plug an AI technology called a neural network into its search engine to boost the accuracy of results and an e-mail service called Smart Reply that automatically writes responses. Other work he has managed include efforts in image recognition and technologies that fetch information based on what users are doing with their devices, rather than what they’re explicitly searching for.

[John] Giannandrea joined Google in 2010 when it acquired a company he co-founded called Metaweb Technologies. Those assets became the basis for Google’s knowledge graph, a vast store of information on hundreds of millions of entities that helps the search engine present factual data in response to certain queries. Singhal’s last day is scheduled to be Feb. 26.
The elevation of Giannandrea represents a further emphasis on the importance of artificial intelligence to Google, a unit of Alphabet Inc. Chief executive officer Sundar Pichai said the technology has been key to recent efforts in search on mobile devices and personal assistant technologies.

Speaking of search..
link to this extract

 

Garth Gibbs: ‘The archetypal diary writer’ » Press Gazette

An obituary from August 2011:

Garth also managed to spend much of his time chasing various ‘sightings’ of ‘Lucky’ Lord Lucan, who was thought to have fled abroad after apparently mistaking his nanny for his wife and bludgeoning the ‘wrong’ woman to death. Of this colourful period in an almost continually helter-skelter career, Garth himself wrote: ‘As that brilliantly bigoted and crusty old columnist John Junor once cannily observed: ‘Laddie, you don’t ever want to shoot the fox. Once the fox is dead there is nothing left to chase.'”

With a wonderfully fertile imagination – a prerequisite of any good tabloid journalist – plus a good deal of chutzpah, Garth relished the challenge of keeping Lord Lucan alive, but never finding him.

‘I regard not finding Lord Lucan as my most spectacular success in journalism,’he said. ‘Of course, many of my colleagues have also been fairly successful in not finding Lord Lucan. But I have successfully not found him in more exotic spots than anybody else.

‘I spent three glorious weeks not finding him in Cape Town, magical days and nights not finding him in the Black Mountains of Wales, and wonderful and successful short breaks not finding him in Macau either, or in Hong Kong or even in Green Turtle Cay in the Bahamas where you can find anyone.”

Lucan was finally declared dead – though never found – on Wednesday. Not finding him was indeed a splendid task allotted to many journalists down the years. Speaking of search…
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#SEO for sale?! Exposing Google loopholes in light of FTC native guidelines » aimClear® Blog

Marty Weintraub:

Mashable, a respected global media company focused on informing and entertaining “the digital generation,” was our inspiration.  Mashable has joined the swelling ranks of websites selling native content articles to advertisers.  Initially we were interested in participating in the program and reached out to Mashable regarding their native post advertising, which is called BrandSpeak or BrandLab.

As the conversation progressed, we were curious as to how Mashable native posts show up in Google search results and disclosure verbiage in light of new FTC native advertising guidelines. After we corresponded with a Mashable sales associate and researched BrandSpeak/BrandLab in detail, we were motivated to share our findings with the community as a point of learning about native content.

Those findings surprised (and astonished) us. Aimclear analysts identified a Google SEO loophole, which is perhaps the greatest ranking algorithm gap in years, allowing marketers to literally buy their way into Google search results with paid content…

…At best, allowing paid SEO tilts the playing field, making it even harder for smaller, perhaps more relevant players to compete for free Web Search results.

Google’s Webmaster Guidelines governing native content and Web Search are firmly rooted in 2013.

Tricky; this stuff is low-quality, but sites are desperate to generate revenue somehow. Speaking of revenue…
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Google boots ad blockers from Google Play » TechCrunch

Sarah Perez:

According to Rockship Apps founder and CEO Brian Kennish, maker of Adblock Fast, Google’s app reviews team informed him the app was being removed for violating “Section 4.4” of the Android Developer Distribution Agreement.

This is the section that informs developers they can’t release apps that interfere with “the devices, servers, networks, or other properties or services of any third-party including, but not limited to, Android users, Google or any mobile network operator.”

If that text sounds a little broad-reaching and vague, that’s because it is. It’s also what allows Google to react to changes in the industry, like this one, on the fly.

Kennish says that Google’s app reviews team informed him that he could resubmit after modifying his app so it didn’t “interfere with another app, service or product in an unauthorized manner.”

“We’ve been trying to contact Google through their public channels since Monday, and I tried through private ones all day yesterday…but we haven’t gotten any official response from a human – just autoresponders,” notes Kennish.

He suspects that Adblock Fast was the first to be pulled from Google’s app store because it had climbed the charts so quickly and had achieved a 4.25 rating. Kennish says that the app had around 50,000 installs at the time of its removal.

In addition, the company could have gotten on Google’s radar by pushing out an update that offered a better user experience. (Some people didn’t realize it only worked on Samsung’s 4.0 browser and left 1-star reviews. The update was meant to better highlight the app’s requirements.)

Meanwhile, as of the time of writing, other ad blockers are still live, including Crystal and Adblock Plus (Samsung Browser). However, that may not be the case for long.

Crystal’s developer Dean Murphy also just submitted an update that’s just been declined by Google’s app review team for the same reason cited above. Again, Google references section 4.4 of the Developer Agreement as the reason for stopping the update from going live.

“I have appealed the update rejection, as I assume that I am rejected for ‘interfering’ with Samsung Internet Browser, citing the developer documentation that Samsung have for the content blocking feature,” explains Murphy. “I’m still awaiting their reply.”

Wow, that was fast. Crystal was still there on Wednesday. This is going to ratchet up tensions between Google and Samsung (again); in the comments on the Verge article on this topic (which has less detail) there are people who switched to iOS because of adblocking, or are considering moving back because they can’t get it on Android. A small but possibly significant group.

Google has clearly set its face against adblocking on mobile, but the pressure is starting to build up behind the dam.
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About » DeepDetect

DeepDetect (http://www.deepdetect.com/) is a machine learning API and server written in C++11. It makes state of the art machine learning (such as deep learning) easy to work with and integrate into existing applications. Its goal is to simplify and secure both the development and production phases by using possibly different servers and passing models from one to the other.

It originates from the need for industries, businesses and researchers to quickly fit a machine learning pipeline into existing applications, starting with well-known models, and moving toward more targeted ones while measuring accuracy.

DeepDetect allows this by coupling a generic API and a server with high performance machine learning libraries. At the moment it has support for the deep learning library Caffe. More libraries are to be supported in order to span over a larger set of common use cases.

There are free (even for commercial use) models that are downloadable from the site. This lies just over my event horizon for understanding – but reading the details about “getting started” puts me in mind of people feeding a giant brain, or disembodied intelligence, and that gives me pause.

But this stuff is going to be everywhere in two years.
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Would you be sad to see Sony withdraw from the tablet market? » Xperia Blog

The mysterious “XB”:

given the challenging smartphone market, as evidenced by last week’s results there is no guarantee that Sony will continue to cater for the tablet market. A recent Japanese blog post by a Sony store manager speculated that the company may withdraw from the tablet market after receiving marketing material suggesting so.

The news would not surprise us, after all, we know that tablets made just 5% of Sony Mobile’s revenues back in 2013 and that was expected to shrink even further. Given the R&D costs of developing and supporting new devices, Sony may feel that producing another tablet for 2016 might not be commercially viable.

I didn’t know that about the tablet revenues; apparently they’re meant to be down to 3-4% now. The question is whether they generate more than 0% in profit – because they must be eating up R+D time and money, which is opportunity cost that Sony probably can’t afford.
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The joy of shortcuts » Allen Pike

Next January, Parse is shutting down. The successful Parse apps will get moved to a custom backend like ours was, perhaps using Parse’s excellent open-source server and migration tool. The unsuccessful Parse apps will die. Hundreds of thousands of unsuccessful Parse apps will perish. Like links to long-dead Geocities pages, dead mobile apps that relied on Parse will linger in the App Stores for years, slowly accumulating one-star reviews.

As much as Parse will try to get the word out that they’re shutting down, many apps’ owners don’t even know that they’re reliant on Parse. Parse’s overly generous free plan made them popular with freelancers and consultants building quick app backends for their clients. Many of those clients don’t know what Parse is, let alone that the little app they commissioned a couple years ago is a ticking time bomb.

How many iOS apps, how many Android apps relied on Parse? There needs to be an enumeration.
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How the iPhone 6 ruined Apple » All this

Dr Drang:

While it’s certainly possible that the great days of iPhone sales growth are over, I wouldn’t make that prediction just yet. In fact, I was surprised to learn that iPhone sales were merely flat. I was expecting a decline—not because the iPhone is losing popularity, but because the iPhone 6’s first quarter of sales was such a gigantic leap upward. The pent-up demand for a larger iPhone caused sales to increase nearly 50% year over year, to 74.47m from 51.03m the year before. This was the biggest percentage jump in year-over-year sales since the introduction of the 4S (which was goosed a bit because the 4S was delayed). I just didn’t think the 6S could keep up with that. And maybe it won’t.

But look at how things were going before the iPhone 6. Had the trend of 2012–2014 continued through 2015, iPhone sales last quarter would have been 65–70 million. Instead they were just under 75m. It’s only in comparison to the huge holiday quarter of 2014 that last quarter looks dull.

I’m reminded of the devotion climate change deniers had to the year 1998. Because of an intense El Niño that year, global temperatures rose well above the trend line, and it remained the hottest year on record for several years. Deniers hit upon this fact, and claimed that global warming had stopped, even though the overall warming trend had continued. The iPhone 6 was Apple’s El Niño.

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Magic Leap Just Landed an Astounding Amount of VC Money » WIRED

Jessi Hempel on the company which has just raised $793.5m in a C round from Alibaba and others (Google and Qualcomm were already on board):

Many believe Magic Leap’s technology—along with a handful of competing virtual and augmented reality products—will usher in a sea change in how we use computers. By placing sensors everywhere and processing the volumes of data they produce, it’s possible to create better immersive environments and believable layers of digital images on top of the physical world. Facebook, Samsung, and Microsoft are creating competing technology and have chosen to make their headsets available even as they’re engineering the products. Google is also beefing up its virtual reality team, and Apple is also reportedly getting into the action. Magic Leap claims to be using a different technology to achieve its effect, and it’s keeping its efforts mostly secret.

The company has made converts out of many of those who have seen demos. New Zealand design studio Weta Workshops has teamed up with Magic Leap to build games. Science fiction writer Neal Stephenson joined the company as its chief futurist. Last fall, Google led a $542m investment, bringing its previous funding total to $592m. But so far, it hasn’t been clear when Magic Leap’s tech will be available for consumers.

Expectations around this are going to be huge, which usually leads to disappointments of the same size. Shipping product matters; having that much of a cash pillow can’t be good, because it won’t help the financial discipline needed to make things (of whatever sort) to a price, for a user, to a specification. Don’t forget the lesson of Leap Motion – big hype, big letdown.
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​Startup lands $100m to challenge smartphone superpowers Apple and Google » CNET

Stephen Shankland:

Acadine, which CNET previously reported was initially known by the placeholder name Gone Fishing, plans to build an operating system for smartphones, tablets, wearable devicess and the Internet of Things.

That’ll be a tough challenge. But [fouder Li] Gong believes Acadine’s generous funding [from a Chinese state-controlled company], fast development and international reach will mean consumers finally will see the alternative to Apple and Google that so many other companies have failed to build.

And of course that means his startup and its investors will reap the rewards. “Owning an OS is extremely important if you can do it,” Gong said. “It’s very profitable if you can do it.”

Potential sources of money, Gong said, include being paid to promote services like search, storage, music streaming and e-commerce; revenue sharing from those services when customers pay to use them; and fees generated by advertising and game sales. All of those, though, depend on Acadine succeeding in finding and exploiting gaps where existing OSes are weak then expanding from there to a large user base.

The list of mobile operating systems that have struggled to compete against Android and iOS and gain that large population of users is long: Microsoft’s Windows Phone, Samsung’s Tizen, Jolla’s Sailfish OS, Canonical’s Ubuntu, Hewlett-Packard’s WebOS, BlackBerry’s BlackBerry OS and Mozilla’s Firefox OS. This last project is the one Gong led at Mozilla until he left in April, and it’s the starting point for H5OS.

One hates to say “a fool and his $100m are soon parted”, but it’ll do.
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Errata, corrigenda and ai no corrida: I was going to include a link to a video of a male cyclist who was suspected of having a motor in his bicycle (and man, it looked fishy) but realised it is a rabbit hole one would never emerge from.

Start up: farewell Steve Wildstrom, PS4 = 30m, cooling on Xiaomi, Google crunches Yelp, and more

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Which slogans do you actually remember, from which ads? Mad Men icon reimagined by p3liator on Flickr.

Then again, you could 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. Simpler than talking to your relatives. I’m charlesarthur on Twitter. Observations and links welcome.

Steve Wildstrom, tech journalist, dies after battle with brain cancer » TechCrunch

John Biggs:

Born in Detroit, Wildstrom went to the University of Michigan and began writing for BusinessWeek in 1972 where he served as news editor in BusinessWeek’s Washington bureau. He was also active in the Children’s Chorus of Washington.

“Steve Wildstrom at Business Week was hands-down the best person in the 1990s-2000s to explain to a broad nationwide audience what tech meant to them in their personal and business lives,” wrote Bill Howard, an editor at PC Magazine. “Steve put his effort into researching, analyzing and writing rather than building the Brand of Wildstrom.”

Very sad news. Wildstrom’s “Tech and You” column in BusinessWeek was an inspiration to me. Certainly all the phone and other reviews on tech sites now owe what they’re doing in part to Wildstrom.
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Sony’s PlayStation 4 scores more than 30m sales » WSJ

Takashi Mochizuki:

Sony Corp. said Wednesday that it has sold more than 30.2 million PlayStation 4 videogame consoles, two years after the launch of a system that the company says has sold faster than any of its predecessors.

“We are sincerely grateful that gamers across the globe have continued to choose PS4 as the best place to play since launch two years ago,” said Andrew House, President and Global CEO of Sony Computer Entertainment Inc.

The latest total, as of Nov. 22, is up from more than 20m in March, when Sony provided its most recent update on PlayStation 4 sales. Sony has said it aims to ship more than 17.5m units during the current fiscal year, which ends in March 2016.

Wii U at 10.7m, and Xbox One estimated at about 15m. Sony has crushed its rivals this time round. Yet there will probably be another console generation for virtual reality – is 2018 too soon?
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The worst app » Allen Pike

App maker Pike started getting angry support emails. Problem was, they weren’t for his app. But the creator of a scam app had put his company’s contact email in its “report a problem” link. So you contact Apple and get them to take it down, right?

Now, the App Store review process is a mixed bag. While it definitely has some problems, its fickle nature has an upside. When an app is in egregious violation of common sense and decency, Apple can simply pull it from the store. All you need to do is contact Apple about the app.

Unfortunately, one does not simply contact Apple about an app. The official way to complain about an app is via the “Report a Problem” link from when you buy the app. Of course, I’m not going to buy this scam app just to complain about it, so I dug up an alternate form to report a problem. Maddeningly, one of the required fields on that form is an order number – the one you receive when you buy the app. Stalemate.

It gets worse. And then, happily, better. The power of a blogpost.
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‘Outsiders’ crack 50-year-old math problem » Quanta Magazine

Erica Klarreich:

The proof, which has since been thoroughly vetted, is highly original, [Assaf] Naor [a mathematician at Princeton] said. “What I love about it is just this feeling of freshness,” he said. “That’s why we want to solve open problems — for the rare events when somebody comes up with a solution that’s so different from what was before that it just completely changes our perspective.”

Computer scientists have already applied this new point of view to the “asymmetric” traveling salesman problem. In the traveling salesman problem, a salesman must travel through a series of cities, with the goal of minimizing the total distance traveled; the asymmetric version includes situations in which the distance from A to B differs from the distance from B to A (for instance, if the route includes one-way streets).

The best-known algorithm for finding approximate solutions to the asymmetric problem dates back to 1970, but no one knew how good its approximations were. Now, using ideas from the proof of the Kadison-Singer problem, Nima Anari, of the University of California, Berkeley, and Shayan Oveis Gharan, of the University of Washington in Seattle, have shown that this algorithm performs exponentially better than people had realized. The new result is “major, major progress,” Naor said.

Abstruse yet with lots of implications for real-world problems involving processing, signalling and networks. It’s the Kadison-Singer problem, if you want to airily mention it over your latte.
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Axel Springer goes after iOS 9 adblocker in new legal battle » TechCrunch

Sarah Perez:

German media giant Axel Springer, which operates top European newspapers like Bild and Die Welt, and who recently bought a controlling stake in Business Insider for $343m, has a history of fighting back against ad-blocking software that threatens its publications’ business models. Now, it’s taking that fight to mobile ad blockers, too. According to the makers of the iOS content blocker dubbed “Blockr,” which is one of several new iOS 9 applications that allow users to block ads and other content that slows down web browsing, Axel Springer’s WELTN24 subsidiary took them to court in an attempt to stop the development and distribution of the Blockr software.

Final ruling on 10 December; court seems likely (based on preliminary hearing) to side with Blockr.
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How the Mad Men lost the plot » FT.com

Ian Leslie (a former Mad Man):

[Professor Byron] Sharp’s first law [in his book “How Brands Grow”] is that brands can’t get bigger on the back of loyal customers. Applying a statistical analysis to sales data, he demonstrates that the majority of any successful brand’s sales comes from “light buyers”: people who buy it relatively infrequently. Coca-Cola’s business is not built on a hardcore of Coke lovers who drink it daily, but on the millions of people who buy it once or twice a year. You, for instance, may not think of yourself as a Coke buyer, but if you’ve bought it once in the last 12 months, you’re actually a typical Coke consumer. This pattern recurs across brands, categories, countries and time. Whether it’s toothpaste or computers, French cars or Australian banks, brands depend on large numbers of people — that’s to say, the masses — who buy them only occasionally, leave long gaps between purchases and buy competing brands in between.

If you work for a brand owner, the implications are profound. First, you will never increase your brand’s market share by targeting existing users — the task that digital media performs so efficiently. The effort and expense marketers put into targeting their own customers with emails and web banners is largely wasted; loyalty programmes, says Sharp, “do practically nothing to drive growth”. What seems like a prudent use of funds — focusing on people who have already proved they like the brand — is actually just spinning wheels.

Second, and paradoxically, a successful brand needs to find a way of reaching people who are not in its “target” (in the sense of “people who are predisposed to buy it”) market…

…Marketers consistently undervalue consistency. Diageo recently carried out an audit of all the endlines that it had attached to one of its biggest brands, Guinness, and were embarrassed to discover it had used more than 20 different slogans in 15 years. What’s more, when it asked people to recall an endline, the only one they remembered was “Good things come to those who wait”, which hadn’t run since 1999. Vast sums of money had been spent on campaigns which probably had short-term effects but barely left a trace in consumer memories.

Long piece, but eminently worth finding a way to read. Sharp’s book sounds worth a read too.
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Apple has acquired Faceshift, maker of motion capture tech used in Star Wars » TechCrunch

Ingrid Lunden:

[Faceshift’s] main focus, so to speak, was on visual effects in areas like gaming and film. In a world where animation technology can be costly and time-consuming to implement, the startup’s main product was marketed a game changer: “Faceshift studio is a facial motion capture software solution which revolutionizes facial animation, making it possible at every desk,” according to the company.

Even so, the technology is also making an appearance at the highest level of wow: it’s used in the latest Star Wars film to make non-human characters more human-like in their expressions.

Apple itself already has patents and assets across motion capture, facial recognition and augmented reality, partly by way of three other European acquisitions, respectively PrimeSense, Polar Rose and Metaio. Faceshift could complement and expand Apple’s capabilities in these areas going forward.

Seems like Apple miiiight be looking at the virtual reality space, though it’s hard to see quite how this fits into anything we recognise in its portfolio.
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Xiaomi’s $45bn valuation seen ‘unfeasible’ as growth cools » Bloomberg Business

Tim Culpan saves the best for the last line in this story about Xiaomi rowing back on its aims even of 80m handset shipments this year, while it tries to expand “ancillaries” such as air purifiers and scooters:

The ancillary businesses are still relatively small, with the company expecting the services units to account for just $1bn of its $16bn in projected revenue this year, Barra said in a July interview. Sales of smartphones outside China accounted for just 7% of its total in the third quarter, according to Strategy Analytics.

Xiaomi has struggled partly because competitors Huawei, Lenovo Group Ltd. and Gionee – among others – quickly copied its business model with ultra-thin devices, glossy websites and lower prices, allowing consumers to easily switch to the hippest new phone.

“Xiaomi was very popular because it was the first brand that marketed its phones as being limited edition,” said Chen Si, a 25-year-old real estate worker in Beijing who bought the Mi 3 after its 2013 release, citing its cool design. “I wouldn’t say I am loyal to Xiaomi, I just think that a phone should be affordable and easy to use. If not, then I’ll just change.”

A year later, she switched to the iPhone 6.

*mic drop*
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O2 explores ad blocking across its network » Business Insider

O2 is one of the UK’s four big carriers, with about 25m customers:

O2 executives told Business Insider the company is actively testing using technology that can block mobile ads at a network-level before they even get served. In addition, the company is considering whether to offer customers easy access to ad blocking apps and browser extensions. O2 is also working with advertisers to improve the standard of mobile advertising.

The hope is that the carrier can help customers filter out bad advertising that interrupts mobile browsing, eats up consumers’ data allowances, and ultimately puts a strain on its own network infrastructure. One ad blocking company estimates that ads are gobbling up between 10-50% of customer’s data plans each month.

This comes after EE, the biggest UK carrier, said it was looking at the same thing. Notice that “working with advertisers to improve the standard of mobile advertising”: no doubt such work has a price.
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Google claims mobile search result impacting Yelp, TripAdvisor is ‘a bug’ » Re/code

Mark Bergen:

Over the weekend, executives from public Internet companies Yelp and TripAdvisor noted a disturbing trend: Google searches on smartphones for their businesses had suddenly buried their results beneath Google’s own. It looked like a flagrant reversal of Google’s stated position on search, and a move to edge out rivals.

Nope, it’s a bug, claims Google. “The issues cited were caused by a recent code push, which we’re working quickly to fix,” a Google spokeswoman said.

In the meantime, the “issues” may be diverting tons of traffic from Google’s competitors. Some, particularly Google’s longtime rival Yelp, are not pleased. “Far from a glitch, this is a pattern of behavior by Google,” said its CEO Jeremy Stoppelman.

Have there been many – or any – occasions where these code pushes have accidentally buried Google’s products?
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I’m leaving Android for iOS, and I blame late games » Polygon

Ben Kuchera reluctantly swapped his Galaxy Note 4 for an iPhone 6S Plus:

You can argue about install base and walled gardens until you’re blue in the face, but the reality is you’ll be waiting for games if you use an Android device. I caught up with Barry Meade, whose studio created The Room series, to ask why the game launched first on iOS. His answer is a common one.

“It’s the same reason everybody has — Android takes way longer to test for due to the diffusion of devices,” Meade told Polygon. “With iOS you only have to test maybe eight to 10 devices, and that’s only because we choose to support pretty old devices, many don’t. With Android you’re looking at hundreds of devices off the bat, each with different hardware/screen set-ups.”

The other side of this is that the iOS players are kind of testing the game for the eventual Android players.

“So with an iOS-first strategy you can release the game to many users with only a small chance of bugs arising due to differences in hardware, which means that when a bug does arise on iOS it’s likely unconnected to the hardware and by fixing it, you are also fixing that bug for any future Android build,” Meade continued. “What Android users forget is that because their versions come later they get the least buggy, higher performance version of the game because iOS users are, in an indirect way, guinea pigs for the other releases.”

I hope that makes Android players feel better, but I’m just so tired of waiting.

The comments – including the (polite) argument between two game developers – are worth reading too.
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Secure Messaging scorecard » Electronic Frontier Foundation

In the face of widespread Internet surveillance, we need a secure and practical means of talking to each other from our phones and computers. Many companies offer “secure messaging” products—but are these systems actually secure? We decided to find out, in the first phase of a new EFF Campaign for Secure & Usable Crypto.

Surprising how poorly BBM and Google Hangouts score on this; and also how many other services actually get perfect scores. One, called Mxit, whiffs every line, though – not even encrypted in transit. (Via Benedict Evans.)
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Google and the shift from web to apps, indexing app-only content, streaming apps » Stratechery by Ben Thompson

From Ben Thompson’s subscriber-only update, looking at Google’s streaming apps effort:

To be sure, streaming apps will be a worse experience than natively installed apps, at least for the foreseeable future. In fact, the effort is so nascent that Google is launching the initiative with only nine apps and only in the Google App on recent Android devices and only over Wifi. You have to start somewhere, though, and betting on the continued expansion of broadband and Moore’s Law goes hand-in-hand with Google’s brute force approach. And, as for the experience, everything is relative: a streamed app is better than having to download an app just to see a search result, and more fundamentally, a streamed app is better than not having access to the information at all.

As for iOS devices, while I’ve criticized Google in the past for its insistence on always launching Android first, I suspect there are real technical and legal challenges that come with streaming iOS apps in a similar fashion; it’s here that Google’s misguided insistence on competing with Apple head-on really hurts. I don’t see anything in this initiative that is necessarily threatening to Apple beyond the fact that app streaming helps Google. Ergo, were Google not a direct competitor (a la Microsoft today), Apple might be willing to lend a hand to ensure iOS customers had a better search experience.

Danny Sullivan also has a writeup of app streaming (which is a clever implementation: apps run inside virtual machines), and points out how awful it would have been if every site was its own app.
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Errata, corrigenda and ai no corrida: none notified.

Start up: why Win10 update was pulled, Android v the law, post-iPad mini, neural nets on the move, and more

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Quiet eye? Roger Federer winds up to serve. Photo by not enough megapixels on Flickr.

You can now receive each day’s Start Up post by email. You’ll need to click a confirmation link, so it ain’t spam.

A selection of 11 links for you. Hug them to your chest like your long-lost children. I’m charlesarthur on Twitter. Observations and links welcome.

Microsoft pulled the Windows 10 November Update due to privacy setting bug » Winbeta

Zac Bowden:

Microsoft has today detailed why they chose to pull the Windows 10 November Update from Windows Update and the Media Creation Tool over the weekend. Their initial comment regarding the situation claimed the company decided that all users needed to update via Windows Update, but it appears that was not the entire story.

Microsoft told WinBeta the update was pulled due to issues with privacy concerns. More specifically, upon installing the update, Windows would not remember the users set privacy settings, meaning Windows would simply default them. While not a huge bug, it did raise a few privacy concerns amongst those upgrading.

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How the ‘quiet eye’ technique makes athletes more coordinated » The Atlantic

David Kohn:

Until recently, most researchers viewed these skills in terms of coordination and reflex, believing that those who were better at making a free-throw or suturing a wound simply had had superior physical dexterity. But in the past few years, a small group of neuroscientists have identified a new way of understanding coordination, one that focuses on visual and cognitive skills over physical prowess.

The concept, known as the quiet-eye theory, is deceptively simple: Before you perform an action, you focus your gaze on the salient aspects of your goal—the rim, the catcher’s mitt, the malignant tissue, and so on. In recent years, using eye-tracking technology, researchers have found that locking onto the relevant stimulus during the right time frame—typically the few hundred milliseconds before, during and after the movement—greatly improves your chances of success.

“When your eyes provide the data, your motor system just knows what to do,” says Joan Vickers, a cognitive psychologist at the University of Calgary and one of the originators of the quiet-eye theory. “Your brain is like a GPS system. It detects target, speed, intensity, and distance.”

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On smartphone encryption and public safety » Manhattan District Attorney’s Office

There are a larger variety of Android devices than Apple devices. Forensic examiners are able to bypass passcodes on some of those devices using a variety of forensic techniques. For some other types of Android devices, Google can reset the passcodes when served with a search warrant and an order instructing them to assist law enforcement to extract data from the device. This process can be done by Google remotely and allows forensic examiners to view the contents of a device.

For Android devices running operating systems Lollipop 5.0 and above, however, Google plans to use default full-disk encryption, like that being used by Apple, that will make it impossible for Google to comply with search warrants and orders instructing them to assist with device data extraction.

Did not know about the remote reset.
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Peak iPad mini » Above Avalon

Neil Cybart:

The iPad mini’s best days are behind it. Using app analytics data from Fiksu and Mixpanel, along with my own iOS device sales estimates and projections, I was able to derive iPad mini sales since launch. Over the past two years, iPad mini sales trends have deteriorated much faster than most people think. When taking into account the move to larger iPhones and iPads, the iPad mini’s value proposition has likely been weakened to such a degree that the decline in sales is permanent. 

Seems that the real decline in iPad sales is of the mini – not the bigger one. So how will the giant iPad fare? Cybart’s analysis is always thoughtful.
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You may be more exposed to the tech bubble than you think » Quartz

Allison Schrager:

First, you might have a stake in these companies if you own any actively managed mutual funds, perhaps through your retirement plan. According to Todd Rosenbluth, director of mutual fund research at Standard &Poor’s, large mutual funds have been investing in non-public companies for years. “Most people have no idea.” he says. The payoffs can be big if some of these firms successfully go public, but the risks are significant because it’s impossible to assign a consistent, accurate value to these investments, and they are hard to sell if the fund faces redemptions. However, regulation keeps mutual funds from holding large amounts of private shares, which would mitigate the impact. “It’s a tiny part of their portfolios,” Rosenbluth says. For example, only about 2% of the Fidelity Blue Chip Growth fund is made up of tech startup investments.

The second way you’re exposed is through public pensions, whether you’re a direct beneficiary or not.

Feels like a stretch, to be honest. And certainly nothing like the dot-com bust.
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YouTube Kids app faces new complaints » The New York Times

Ceclia Kang:

Visit YouTube Kids and it typically does not take long before promotions for junk food appear. The advertisements regularly appear in the form of funny contests and animated stories.

In complaints filed to federal officials on Tuesday, two prominent consumer advocacy groups argued that those ads are deceptive, particularly for children. The two complaints, made to the Federal Trade Commission, expand on filings the groups made to the agency in April and could increase pressure on federal officials to intervene in the fast-growing online video market.

The groups, the Campaign for Commercial-Free Childhood and the Center for Digital Democracy, argue in the complaints that online video aimed at children has become too commercialized and is not held to the same standards as cable and broadcast TV. The complaints call for an investigation of food marketers, video programmers and Google, which owns YouTube, as well as a broad examination of advertising of such food to children online.

If YouTube by default becomes the new online TV, shouldn’t it be held to the same standards as broadcast TV?
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Sony employees on the hack, one year later » Slate

Amanda Hess:

Outside Sony, it would eventually seem as if all the studio’s info had been exposed for everyone to see. But inside the studio, nobody could access anything. “Everything was so completely destroyed. It was surreal. Everything was down,” one ex-employee told me. “It wasn’t just one system or one part of the lot or one building. The network was completely chewed up by the virus.”

“It was like a bomb went off,” one staffer says. “We looked around. We were still alive. So we started doing triage.”

The telephone directory vanished. Voicemail was offline. Computers became bricks.  Internet access on the lot was shuttered. The cafeteria went cash-only. Contracts—and the templates those contracts were based on—disappeared. Sony’s online database of stock footage was unsearchable. It was near impossible for Sony to communicate directly with its employees—much less ex-employees, who were also gravely affected by the hack—to inform them of what was even happening and what to do about it. “It was like moving back into an earlier time,” one employee says. The only way to reach other Sony staffers was to dial their number directly—if you could figure out what it was—or hunt them down and talk face to face.

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NeuralTalk and Walk » Vimeo

Kyle McDonald:

NeuralTalk and Walk from Kyle McDonald on Vimeo.

Andrej Karpathy’s “NeuralTalk” code (github.com/karpathy/neuraltalk2) slightly modified to run from a webcam feed. I recorded this live while walking near the bridge at Damstraat and Oudezijds Voorburgwal in Amsterdam.

All processing is done on my 2013 MacBook Pro with the NVIDIA 750M and only 2GB of GPU memory. I’m walking around with my laptop open pointing it at things, hence the shaky footage and people staring at themselves.

Pretty smart.
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Top Android app devs found exfiltrating mystery stealth packets » The Register

Four researchers have found two thirds of the most popular Android apps indulge in seemingly-useless covert chatter with remote servers.

Top developers including Gameloft, Unity3d, and grillgames are implicated to varying degrees.

The chatter has no use to users. About half of the traffic is related to analytics, such as that used by Twitter and Pandora, with the rest of unknown purpose.

They make the findings in the paper Covert Communication in Mobile Applications (PDF).

“…In fact, some applications start collecting analytics information even before they get activated. For example, twitter, Walmart and Pandora start their data collection as soon as the phone is booted and continue, periodically, during the phone’s entire up time, even if the applications themselves were never used. In most cases, the user cannot opt-out from such data sharing without uninstalling the application.”

Five apps died when the covert chatter was killed off after the code in question was manipulated by the research team.

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Automated scanning of Firefox extensions is security theatre (and here’s code to prove it) » Dan Stillman

Stillman wrote a simple Javascript extension that grabs sites and passwords, yet passes Mozilla’s “scanner” which looks for “malware”:

I asked in February how the scanner would possibly catch things like this, and the response from Mozilla’s Add-ons Developer Relations Lead was that most malware authors are lazy and that he believed the scanner could be made to “block the majority of malware”. The fact that, nine months later, and a few weeks before an enforcement deadline that was already postponed by several months, someone can write a trivial extension in a few minutes that steals passwords, runs a local process, and executes arbitrary remote code, but that is still automatically signed, demonstrates just how ill-conceived this scheme is. It also destroys any argument that whitelisting would put users at greater risk for malware, and it’s infuriating that we’ve had to waste the last few months arguing about the dangers of a whitelisted Zotero. And it’s just depressing that the entire Mozilla developer community spent the last year debating extension signing and having every single counterargument be dismissed only to end up with a system that is utterly incapable of actually combating malware.

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Android One fails to make a mark despite revamp » The Economic Times

Danish Khan:

According to Counterpoint Research, only 1.2m units of Android One [handsets] were shipped to India during its first year (September 2014 to September 2015) in the country, making up only 3.5% of the $50-$100 phone market, the segment which sells the most phones.

Only 3m devices are said to have been shipped in total across the 19 countries that Android One has launched in. Of this, 85% of sales took place in the Asia-Pacific market.

Counterpoint’s Tarun Pathak said that for Android One to succeed in India, Google and its partners need to scale down to lower price points and differentiate the product from biggest competitor which is “Android” itself, which is competing with Android One via original equipment makers (OEM) that are present across $50-$100 price band in India.

Lack of LTE turns out to be a key mistake.
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Errata, corrigenda and ai no corrida: none notified.