Start up: careful with that axe, Marissa!, PC consolidation, ultra-cheap Android, and more

Yes, we need to discuss this. Photo by Janitors 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 11 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Ringing Bells Freedom 251: cheapest Android smartphone for just Rs 251 ($3.65) » TechPP

Raju PP:

• 4-inch qHD screen with IPS
• 1.3 GHz quad-core processor
• 1GB RAM
• 8GB internal storage
• microSD slot for up to 32GB of external storage
• 3.2MP rear camera with auto focus
• 0.3MP (VGA) front camera
• 3G support
• 1450 mAh battery
• Android 5.1 Lollipop

The above hardware specifications look like an entry level smartphone from 2014 with no major compromises. Going by the published images, it doesn’t look bad either, at least not an eyesore that one would expect for a phone costing less than what you’d pay for a coffee at Starbucks.

Looks OK (they have actual photos). A bit like something from a cornflakes packet, but at that price it’s proof of how Android is revolutionising communication, and the world.

Only question now is whether the company can survive and make enough.
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Samsung fails to secure thousands of SmartThings homes from thieves » Forbes

Thomas Fox-Brewster:

Critically, anyone relying on SmartThings devices for home security is vulnerable. In an environment where the SmartThings hub is connected to the firm’s own motion sensors, which act like traditional security alarms but provide alerts to people’s phones when activity is detected, they allow a hacker to enter a home undetected. Even worse, when connected to a connected smart lock, Cognosec researcher Tobias Zillner says a robber can get break into a home without using any brute force whatsoever.

“At the moment I am able to hack the system … and open the door lock as well as to jam the motion sensor without any trace left back in the system,” he told Forbes.

Come on, you knew the Internet of Things was going to lead to this.
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Priorities in a time of plenty » Asymco

Horace Dediu:

The mass phenomenon of measuring the wrong thing because it’s the easiest to measure is called “financialization”. Financialization is the process by which finance and finances (rather than creation) determine company, individual and society’s priorities. It comes about from an abundance of data that leads to fixation on what is observable to the detriment of awareness of hazards or obstacles or alternatives. This phenomenon is more likely when the speed of change increases and decision cycles shorten.

Financialization is creeping into all aspects of society and the extent to which it infects companies is the extent to which they suffer from early mortality.

So is Apple avoiding financialization? How can anyone avoid the tyranny of mis-optimization?

Dediu’s writing is lyrical, despite the topic; the way that he seems to grope towards the conclusion (but actually knows where he’s going) is great to watch.
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The ax falls at Yahoo » POLITICO

Peter Sterne:

“On our recent earnings call, Yahoo outlined out a plan to simplify our business and focus our effort on our four most successful content areas  – News, Sports, Finance and Lifestyle. To that end, today we will begin phasing out the following Digital Magazines:  Yahoo Food, Yahoo Health, Yahoo Parenting, Yahoo Makers, Yahoo Travel, Yahoo Autos and Yahoo Real Estate,” [Yahoo global editor in chief Martha] Nelson wrote in a Tumblr post.

In addition, a source familiar with the matter said that Yahoo was ending its tech vertical and moving some of its staff — including former New York Times columnist David Pogue — to Yahoo’s news vertical. Eater first reported that the food vertical was being shut down and Skift first reported that the travel vertical was being shut down.

As part of the changes, the editors of all of the eliminated verticals are being laid off. Dan Tynan, who joined Yahoo Tech as a columnist in December 2013 and became editor in chief of the vertical in July 2015, announced his departure in a farewell memo to staff.

“Well, that was not entirely unexpected. Eight Hundred and Four days after taking the purple, my career as a Yahoo is over,” he wrote.

Doubt the chopping is over yet. Tynan wrote in his memo that he worked with “the best (and smallest) staff of any tech publication on the internet”. You can argue about the quality, but smallest? Lots of news orgs would disagree.
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Vaio near deal with Toshiba, Fujitsu to form Japan PC giant » Bloomberg Business

Pavel Alpeyev and Takashi Amano:

Vaio Corp., the personal computer maker spun off from Sony Corp. in 2014, is closing in on a three-way merger with rivals to create a producer that can dominate Japan and weather a shrinking global PC market.

Vaio expects to strike an agreement to combine with Toshiba Corp.’s and Fujitsu Ltd.’s PC divisions by the end of March, said Hidemi Moue, chief executive officer of Japan Industrial Partners Inc., the buyout fund that now controls the former arm of Sony. Vaio expects to own the biggest stake in the merged company, which can help the trio save on research and development and scale production, he said…

…The tie-up “makes sense if you want to build a niche consumer base in Japan,” said Damian Thong, an analyst at Macquarie Group Ltd. in Tokyo. “This approach of merging three Japanese PC makers will probably have little chance of success outside of the country”…

…“In the PC business, all options are on the table for restructuring and partnerships, but nothing has been decided at this moment,” Toshiba’s spokesman Hirokazu Tsukimoto said. A spokeswoman at Fujitsu declined to comment.

In contrast to the gloom, Vaio is set to report its first monthly profit in March and Moue expects the company to be profitable in the year ending May 2017. Japan Industrial Partners has slashed the workforce to 240 from about 1,000, slimmed its product line-up and focused on premium business users, he said.

Consolidation was inevitable.
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In the matter of the search of an Apple iPhone seized during the execution of a search warrant » DocumentCloud

This is a scan of the order compelling Apple to help the FBI break into an iPhone 5C used by one of the San Bernadino killers (more details on this below, or in the docket). Note that it says that Apple must “[provide] the FBI with a signed iPhone software file, recovery bundle or other Software Image File that can be loaded onto the Subject Device… The SIF will be coded by Apple with a unique identifier of the phone so that the SIF would only load and execute on the Subject Device.”

Apple has five days to appeal. Below is its response.
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Customer Letter » Apple

Tim Cook (and perhaps a few others at Apple) on why they’re refusing to create a version of iOS to be installed on an iPhone 5C seized from one of the killers in the terrorist attack at San Bernadino that would let the US government brute-force its password/code:

The government suggests this tool could only be used once, on one phone. But that’s simply not true. Once created, the technique could be used over and over again, on any number of devices. In the physical world, it would be the equivalent of a master key, capable of opening hundreds of millions of locks — from restaurants and banks to stores and homes. No reasonable person would find that acceptable.

The government is asking Apple to hack our own users and undermine decades of security advancements that protect our customers — including tens of millions of American citizens — from sophisticated hackers and cybercriminals. The same engineers who built strong encryption into the iPhone to protect our users would, ironically, be ordered to weaken those protections and make our users less safe.

We can find no precedent for an American company being forced to expose its customers to a greater risk of attack. For years, cryptologists and national security experts have been warning against weakening encryption. Doing so would hurt only the well-meaning and law-abiding citizens who rely on companies like Apple to protect their data. Criminals and bad actors will still encrypt, using tools that are readily available to them.

Apple has framed this well: that it’s about security (not privacy). You’ll recall that last week the FBI’s director declared that investigators couldn’t unlock the phone.

The American Civil Liberties Union and Electronic Frontier Foundation and WhatsApp have all backed Apple’s stance; the ACLU says “code is speech, and this would be forced speech, which is against the First Amendment, and perhaps the Fourth and Fifth too”.
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Apple versus the FBI, understanding iPhone encryption, the risks for Apple and encryption » Stratechery

Ben Thompson dug into the detail of the encryption that the 5C held by the FBI does and doesn’t have; if it had been a 5S, he explains, things would have been different:

thanks the secure enclave an iPhone 5S or later, running iOS 8 or later, is basically impossible to break into, for Apple or anyone else. The only possible solution from the government’s perspective comes back to the more narrow definition of “backdoor” that I articulated above: a unique key baked into the disk encryption algorithm itself.

This solution is, frankly, unacceptable, and it’s not simply an issue of privacy: it’s one of security. A master key, contrary to conventional wisdom, is not guessable, but it can be stolen; worse, if it is stolen, no one would ever know. It would be a silent failure allowing whoever captured it to break into any device secured by the algorithm in question without those relying on it knowing anything was amiss. I can’t stress enough what a problem this is: World War II, especially in the Pacific, turned on this sort of silent cryptographic failure. And, given the sheer number of law enforcement officials that would want their hands on this key, it landing in the wrong hands would be a matter of when, not if.

This is why I’m just a tiny bit worried about Tim Cook drawing such a stark line in the sand with this case: the PR optics could not possibly be worse for Apple. It’s a case of domestic terrorism with a clear cut bad guy and a warrant that no one could object to, and Apple is capable of fulfilling the request. Would it perhaps be better to cooperate in this case secure in the knowledge that the loophole the FBI is exploiting (the software-based security measures) has already been closed, and then save the rhetorical gun powder for the inevitable request to insert the sort of narrow backdoor into the disk encryption itself I just described?

Then again, I can see the other side: a backdoor is a backdoor, and it is absolutely the case that the FBI is demanding Apple deliberately weaken security.

A couple of other points: the phone actually belongs to the California government; it was issued to a person who turned out to be a killer in the San Bernadino incident. That means it’s probably the government which implemented the Mobile Device Management (MDM) which wipes the phone after 10 failed passcode attempts. But they also can’t get into it. Also of note: the docket mentions that the killer destroyed two other phones ahead of the incident – they seem to have been “burner” phones, intended to destruction. So it’s likely that there’s nothing of interest at all on *this* phone.

The FBI has the iCloud backups up to October 19 (see p17 of the scan, above); the killings were on December 4.
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Why the FBI’s request to Apple will affect civil rights for a generation » Macworld

Rich Mogull (a security expert):

Apple has a long history of complying with court orders and assisting law enforcement. Previous to iOS 8, they could extract data off devices. Even today, data in most of their online services (iCloud, excluding iMessage and FaceTime) can be provided upon legal request.

This case is different for multiple reasons:

• Apple is being asked to specifically create new software to circumvent their security controls. They aren’t being asked to use existing capabilities, since those no longer work. The FBI wants a new version of the operating system designed to allow the FBI to brute force attack the phone.

• The FBI is using a highly emotional, nationally infamous terrorism case as justification for the request.

• The request refers to the All Writs Act, which is itself under scrutiny in a case in New York involving Apple. Federal Magistrate Judge James Orenstein of the Eastern District of New York is currently evaluating if the Act applies in these cases.

That’s why this is about far more than a single phone. Apple does not have the existing capability to assist the FBI. The FBI engineered a case where the perpetrators are already dead, but emotions are charged. And the law cited is under active legal debate within the federal courts.

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CRN Exclusive: Google terminating Play For Education in a small-scale retreat from Android’s educational market » CRN

Google is retreating from a small segment of its booming education business by ending the life of a product that was developed to encourage adoption of Android tablets in schools, Google partners told CRN on Friday.

Google Play for Education, an extension of the Play software distribution platform, was rolled out around two years ago with the intent of putting more tablets into the hands of students. The app store, curated in close collaboration with educators, enabled solution providers to manage both devices and their specialized content…

…One [reseller] executive who asked not to be named told CRN he learned of the product’s termination after attempting to procure tablets for a customer.

“We noticed something funny a couple weeks ago” when a client requested a quote for a number of Play for Work tablets, the Google partner told CRN. “Basically all manufacturers told us all those devices were end-of-lifed.”

Asus, then Samsung, said they didn’t have replacement devices that were Play-integrated, the reseller said. They told him to look at Chromebook laptops as an alternative.

Google later informed the partner that Play for Education was on its way out, and the company should focus on its Chromebooks practice for serving the educational market.

That partner exec said he believes some capability issues, like a limited number of student profiles that could be loaded onto a single device, coupled with competition from Apple’s iPads, kept the Android tablets from deeply penetrating the education market, and convinced Google to step back from the program.

Google made a big marketing push last year for the educational tablets, the partner exec said, but “I’m not sure it ever clicked.”

This makes it seem as though both Play For Education *and* Play For Work are dead, if those devices were EOL’d. Tablets and Android have never been a good fit.
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News discovery » Sqoop

It’s a new Seattle-based startup, which mines US SEC documents and others for current information:

Sqoop saves you time and makes sure you don’t miss the story by giving you one place to search for company information, rather than spending hours each week conducting the same repetitive searches across a variety of public data sites. You can set alerts so that when new documents are filed, we’ll alert you how and when you want.

One to kick the tyres on. (I previously used SECAlerts.com but found it impossible to change settings.) Thanks to David Senior for the pointer.
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Errata, corrigenda and ai no corrida:

Start up: debunking 2015’s fake pics, wearables grow, Apple’s 800 camera people, and more


The Internet of Things might help warn about this. Photo by freefotouk on Flickr.

You’re not too late to sign up to receive each day’s Start Up post by email. Think of it as a Christmas present to yourself. Actually, it’ll stop for two weeks after Christmas, but anyway.

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

76 viral images from 2015 that were totally fake » Gizmodo

Matt Novak:

We debunked dozens of fake photos this year, covering everything from Charles Manson’s baby photos to John Lennon’s skateboarding skills, and everything in between. It was another busy year for anyone spreading fake images on the internet.

Below, we have 76 photos that you may have seen floating around the internet in 2015. Some are deliberate photoshops created by people who want to deceive. Others are just images that got mixed up in this big, weird game of Telephone we call the internet.

76! That’s more than one a week. Actually, there’s only one fake a week?
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US probes Theranos complaints » WSJ

John Carreyrou:

U.S. health regulators are investigating complaints about laboratory and research practices at Theranos Inc. by two former employees of the blood-testing startup company, according to people familiar with the inquiries.

A complaint filed in September by a former Theranos lab employee to the Centers for Medicare and Medicaid Services alleged that management instructed lab employees to keep testing patients with the company’s blood-analysis devices despite indications of “major stability, precision and accuracy” problems with those devices.

The second complaint was sent to the Food and Drug Administration earlier this month by another ex-employee, who alleged that the study submitted by Theranos last year to win the agency’s approval for a herpes test was tainted by breaches in research protocol.

Really not going well for Theranos. All been going downhill since the WSJ article in October.


Worldwide shipments of wearables to surpass 200m in 2019, driven by strong smartwatch growth » IDC

According to the International Data Corporation (IDC ) Worldwide Quarterly Wearable Device Tracker , the worldwide wearable device market will reach a total of 111.1m units shipped in 2016, up a strong 44.4% from the 80m units expected to ship shipped in 2015. By 2019, the final year of the forecast, total shipments will reach 214.6m units, resulting in a five-year compound annual growth rate (CAGR) of 28%.

“The most common type of wearables today are fairly basic, like fitness trackers, but over the next few years we expect a proliferation of form factors and device types,” said Jitesh Ubrani , Senior Research Analyst for IDC Mobile Device Trackers. “Smarter clothing, eyewear, and even hearables (ear-worn devices) are all in their early stages of mass adoption. Though at present these may not be significantly smarter than their analog counterparts, the next generation of wearables are on track to offer vastly improved experiences and perhaps even augment human abilities.”

One of the most popular types of wearables will be smartwatches, reaching a total of 34.3m units shipped in 2016, up from the 21.3m units expected to ship in 2015. By 2019, the final year of the forecast, total shipments will reach 88.3m units, resulting in a five-year CAGR of 42.8%.

“In a short amount of time, smartwatches have evolved from being extensions of the smartphone to wearable computers capable of communications, notifications, applications, and numerous other functionalities,” noted Ramon Llamas , Research Manager for IDC’s Wearables team. “The smartwatch we have today will look nothing like the smartwatch we will see in the future. Cellular connectivity, health sensors, not to mention the explosive third-party application market all stand to change the game and will raise both the appeal and value of the market going forward.

Apple Watch forecast to continue dominating through to 2019, though Android Wear coming up strongly. Tizen not going anywhere.
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‘Internet of Things’ technology powers an interactive flood map and sensor network » Nominet

Nominet, in association with the Flood Network, is today launching an interactive, online map which visualises river and stream levels around Oxford. The map, showing how technology can be a part of flood defence systems anywhere, has been developed following a successful pilot project with the Oxford Flood Network. The project has been focused on exploring the potential of the Internet of Things (IoT) to create an extensive, localised, early-warning system for flood-prone areas for the first time in the UK.

The Flood Network is powered by two pieces of innovative technology developed by Nominet:

• A set of IoT tools to help innovators build and scale IoT applications in real environments. The tools utilise existing internet standards, such as DNS, to provide proven scalable solutions with an existing support eco-system.

•The use of TV white space to connect a number of hard-to-reach devices in the network. Nominet’s recently qualified TV white space (TVWS) database performs complex calculations that informs devices what frequencies they can use in which area, at what power and for how long.

The map, an application built on top of the tools, is being released as a beta version today to gather feedback from local residents and encourage further community engagement.

First use I’ve seen of TV white space (analogue frequencies left over by the switch to digital TV). And, finally, the Environment Agency providing data from its sensors at river locks – after years when the EA resolutely refused to release its data to public use.

Also: an IoT application that really makes sense.
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‘Unauthorized code’ that decrypts VPNs found in Juniper’s ScreenOS » The Register

Simon Sharwood:

Juniper Networks has admitted that “unauthorized code” has been found in ScreenOS, the operating system for its NetScreen firewalls.

The code “could allow a knowledgeable attacker to gain administrative access to NetScreen devices and to decrypt VPN connections.”

And on The Register’s reading of the situation, the unauthorised code may have been present since 2008, an assertion we make because Juniper’s notice about the problem says it impacts ScreenOS 6.2.0r15 through 6.2.0r18 and 6.3.0r12 through 6.3.0r20. ScreenOS 6.2 was released in 2008. Screen OS 6.3 came out in 2009.

We’ve asked Juniper if it has any theories about the origin of the code and have been told the company has nothing to say on the matter beyond the post we’ve linked to above and canned statements from its PR team.

Just what happened is therefore obscure for now, but the obvious scenarios aren’t good news for Juniper.

Or, indeed, its customers. Two views on this: (1) shows terrible effects of having backdoors because it means those “knowledgeable attackers” can read everything; (2) what effects has it had, exactly?
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The iPhone’s camera is so good because 800 people are working on it » The Verge

Chris Welch writes up the CBS 60 Minutes interview with Apple, which mostly revealed nothing the tech world hasn’t obsessed over for years, but for this:

the episode did reveal one semi-interesting new detail: Apple now says there are 800 people solely dedicated to working on the iPhone’s camera. That team of “engineers and other specialists” is led by Graham Townsend, who took Rose on a tour of the camera testing lab.

“There’s over 200 separate individual parts” in the iPhone’s camera module, Townsend said. Then he demonstrated how Apple simulates various conditions to test out the camera’s performance, from sunsets to lousy indoor lighting. “We can simulate all those here,” Townsend said. Apple’s competitors certainly conduct many of those same tests, but the sheer size of Apple’s camera team shows you how high up on the priority list it’s risen. Apple has built entire ad campaigns around the iPhone’s camera, and always makes it a point to highlight improvements with each new iPhone revision.

Generally, the interview lacked anything else noteworthy.

Love to know how that 800 breaks down between software and hardware. And beyond a certain minimum, is it just sheer numbers of people beavering away that makes good? How many do Samsung and LG have on this?
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Toshiba Revitalization Action Plan and FY2015 forecast (PDF) » Toshiba

Following its accounting scandal, the company is cutting thousands of jobs and selling off its TV business, and reorganising its PC business:

The Personal & Client Solutions Company will be split off from Toshiba Corporation and merged with a BtoB PC sales company in Japan.

• Headcount reduction of 1,300, about 30% of its global total, within FY2015.
• Close and sell Ome Complex, the Japanese development base of PC and visual products.
• A 60.0bn yen [US$490m] cost for structural reform is forecast for FY2015.
• Reduce total fixed costs by more than 30.0bn yen [US$245m] in FY2016 against FY2015.
• Downsize global sales scale to 3 million units a year, and make the business profitable.

The split will happen in January, and be effective from April. A separate PDF of the reorganisation for the PC business alone suggests that it had sales in the year to March 2015 of 97.3bn yen (US$800m) and operating profit of 209m yen (US$1.7m) – which, on 3m PCs sold, would be an average price per PC of $266 and operating profit of $0.56 each.

Toshiba was the first company to produce a mass-market laptop, in 1985. Lots can happen in 30 years.
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How the online hate mob set its sights on me » The Guardian

Jon Ronson:

A train crashed in Philadelphia [in May 2015]. Passenger cars were ripped apart. Eight people died and 200 more were hospitalised. A survivor emerged from the wreckage and tweeted: “Thanks a lot for derailing my train. Can I please get my violin back from the 2nd car of the train?”

In the early days, Twitter was a place of curiosity and empathy. Back then, people might have responded to this woman: “Are you OK?” or “What was it like?” But that’s not how Twitter and Facebook responded in 2015. Instead, it was: “Some spoiled asshole is whining about her violin being on that Amtrak that derailed. People died on that train” and |“I hope the violin is crushed” and “I hope someone picks it up and smacks it against the train” and…

And worse. Much worse. But as Ronson asks, why are hate mobs so much quicker to form? Why are people being unpaid shaming interns for Twitter and Google too?
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Ericsson and Apple sign patent deal, settle litigation | Reuters

Olof Swahnberg:

Ericsson did not specify how much it would earn from the deal but estimated overall revenue from intellectual property rights in 2015 would hit 13 to 14 billion crowns ($1.52-$1.64 billion), including positive effects from the settlement with Apple, up from 9.9 billion crowns in 2014.

Investment bank ABG Sundal Collier said in a note to clients it believed the deal meant Apple would be charged around 0.5 percent of its revenue on iPads and iPhones by Ericsson.

Ericsson Chief Intellectual Property Officer Kasim Alfalahi said the agreement was broad, covering the latest 4G-LTE generation of mobile technology, as well as the earlier 2G and 3G technologies.

Quick settlement for a patent row: case was filed in January 2015.
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Errata, corrigenda and ai no corrida: in yesterday’s links it said that Linux was vulnerable to the 28-backspace hack for passwords. That should be GRUB.

Start up: Samsung pays on patents, smartphone sales slow, Toshiba to sell PC arm?, and more


“Madam, I’m afraid that following the Galactic Depression I can’t give you a mortgage no matter what clothes you wear.” Photo by leg0fenris 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.

LVMH’s TAG Heuer to step up smartwatch production to meet demand » Bloomberg Business

Swiss watchmaker TAG Heuer will increase production of its smartwatch in coming months after receiving requests from retailers, agents and subsidiaries for some 100,000 timepieces, according to LVMH Moet Hennessy Louis Vuitton SE’s watch chief.

TAG Heuer aims to make 2,000 pieces per week, up from a current 1,200, Jean-Claude Biver said in an e-mailed response to questions. Online sales of the Connected Watch will be suspended probably until May or June to give priority to physical stores, he said.

At $1,500 each, that’s revenue of $150m.
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The economics of Star Wars: Modeling and systems risk analysis suggest financial ruin for the Galactic Empire » Phys.org

Erika Ebsworth-Goold:

First, [Zachary] Feinstein [PhD, assistant professor of electrical and systems engineering in the School of Engineering & Applied Science at Washington University in St. Louis] modelled the galactic economy by estimating the price of both Death Stars, using the most recently completed aircraft carrier in the American fleet as a measuring stick.

Comparing the price ($17.5bn) and size (100,000 metric tons of steel) of the USS Gerald Ford with an estimated size of both Death Stars, the price tag for the Empire was astounding: $193 quintillion for the first version; $419 quintillion for the second, though manageable in comparison to the $4.6 sextillion Galactic economy.

In the movies, both Death Stars are destroyed within a four-year time span, which would have been a staggering economic blow to the Imperial financial sector. To prevent a total financial collapse would require a bailout of at least 15%, and likely greater than 20%, of the entire economy’s resources.

“The most surprising result was how large the economic collapse could be,” Feinstein said. “Without a bailout, there was a non-negligible chance of over 30% drop in the size of the Galactic economy overnight—larger than the losses from the Great Depression over four years (from peak to trough).

“Episode 7: A New Quantitative Easing”.
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Samsung announces payment of $548m to Apple but reserves right to seek reimbursement » FOSS Patents

Florian Müller (who has been following all the zillions of patent rows forever):

on Thursday afternoon local California time, Apple and Samsung filed a joint case management statement with the United States District Court for the Northern District of California, in which Samsung says it has “has made arrangements to complete payment to Apple.” It is now waiting for Apple’s original invoice, and if that payment arrives before the weekend by Korean time, it will send $548m to Apple by December 14.

So, approximately four months before the fifth anniversary of its original complaint, Apple will physically receive money from Samsung.

Not in nickels, either.
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Worldwide smartphone market will see the first single-digit growth year on record » IDC

According to a new forecast from the International Data Corporation (IDC ) Worldwide Quarterly Mobile Phone Tracker , 2015 will be the first full year of single-digit worldwide smartphone growth. IDC predicts worldwide smartphone shipments will grow 9.8% in 2015 to a total of 1.43bn units. IDC updated its previous forecast to reflect slowing growth in Asia/Pacific (excluding Japan), Latin America, and Western Europe. The slower growth is expected to intensify slightly over the 2015-2019 forecast period and is largely attributed to lower shipment forecasts for Windows Phone as well as “alternative platforms” (phones running operating systems other than Android, iOS, and Windows Phone)…

…”With the smartphone market finally slowing to single-digit growth, maintaining momentum will depend on several factors,” said Ryan Reith , program director with IDC’s Worldwide Quarterly Mobile Phone Tracker. “The main driver has been and will continue to be the success of low-cost smartphones in emerging markets. This, in turn, will depend on capturing value-oriented first-time smartphone buyers as well as replacement buyers. We believe that, in a number of high-growth markets, replacement cycles will be less than the typical two-year rate, mainly because the components that comprise a sub-$100 smartphone simply do not have the ability to survive two years. Offering products that appeal to both types of buyers at a suitable price point will be crucial to maintaining growth and vendor success.”

“As shipment volumes continue to slow across many markets, consumers will be enticed by both affordable high-value handsets as well as various financing options on pricier models,” said Anthony Scarsella , Research Manager with IDC’s Mobile Phones team.

Say it again: “the components that comprise a sub-$100 smartphone simply do not have the ability to survive two years”.
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Review: Microsoft’s Surface Book » iTnews

Juha Saarinen:

GeekBench 3 rated the single core processor score at 3480 and the multicore equivalent at 7165. This is quicker than the iPad Pro, which managed 3220 and 5442 in the single and multicore tests respectively, but a comparison between the two is difficult due to different processor architectures and Windows 10 and Apple iOS 9.1 being very dissimilar in how people use them: Windows 10 for instance allows full file system access, but iOS 9.1 doesn’t.  

You won’t be disappointed with the performance of the Surface Book in the vast majority of scenarios.  

You will, however, pay a premium for the tablet/laptop functionality: my AUD$4199 review unit is a good chunk’o’change. You could buy a top of the range 13-inch MacBook Pro with similar specs as the Surface Book and have change left for an iPad mini 4 as a companion tablet. 

Staying on the Microsoft side of the fence, the Surface Pro 4 top dog model has the same 512GB sized storage, 16GB RAM, is lighter, has a Core i7 processor but a slightly lower resolution PixelSense screen and no secondary graphics card – it costs $3580 with the Type keyboard cover, and runs Windows 10 just fine.

I thought Saarinen had transposed the numbers in that price, then saw the following paragraph. The prices translate to US$3,040 for that review unit and US$2,590. Clearly Microsoft doesn’t want to lose money on hardware any more. But at those prices, it’s really not going to sell in any appreciable numbers.
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Access denied » The Awl

John Herrman on the problem for various media that follows the way “access” to big stars, and politicians, and everyone, is being short-circuited by social media:

As did pundits with Trump coverage, [Kotaku’s Stephen] Totilo diagnoses the specific problem correctly, I think: Ubisoft and Bethesda were probably upset about Kotaku leaking or being critical of their products, and cut off access as a result. This is, in his words, “the price of games journalism.”

But the post’s secondary conclusions—that Kotaku rejects the idea of a games press that is a “servile arm of a corporate sales apparatus” and that this change in some way vindicates its prescient and recently implemented plan to “embed” reporters in games, rather than treating the games as objects to be reviewed—hint at a bigger worry. It’s not just that game companies might be mad at Kotaku, it’s that at the same time, they need it less than ever. What good is a complex website with a few million viewers spread across hundreds of games in a world where a company can just release a couple hours of gameplay footage of its own, or hand over a title to a YouTuber or a Twitch celebrity who’ll play nicely in front of millions of viewers?

link to this extract


Transformation at Yahoo foiled by Marissa Mayer’s inability to bet the farm » The New York Times

Farhad Manjoo:

Yahoo’s fumbled foray into TV only highlights Ms. Mayer’s strategic failure. Instead of making a single big bet [of buying Netflix in 2012 when its share price was one-tenth its present level] that might have focused the company on something completely different and potentially groundbreaking, Ms. Mayer staked out a lot of small and midsize positions, rarely committing to anything early enough to make a difference. For Ms. Mayer, original programming was just one of dozens of products in a portfolio that remains too complex to understand.

So, too, were other projects that could have been at the center of Yahoo’s new mission. In the time that Ms. Mayer has been at the helm, Facebook has invested heavily in messaging apps that could define the future of communication. Google and Apple, anticipating the eventual decline of text-based search queries, have tried to create predictive, voice-based search engines that also catalog all the content inside apps. Pinterest is pioneering a new kind of online commerce, while Instagram, Snapchat and Vine are working on new ways to tell collective narratives through video.

Under Ms. Mayer, Yahoo has had a hand in many similar initiatives, but it hasn’t led in any of these areas.

“Inability” should probably have been “unwillingness” (Manjoo won’t have written the headline), but the analysis is spot-on.
link to this extract


Japan’s Toshiba, Fujitsu in talks to merge loss-making PC units – sources » Yahoo Finance UK

Makiko Yamazaki and Reiji Murai of Reuters:

The emergence of tablets and other devices as well as fierce competition has pushed Japanese PC divisions into the red. At the same time, Toshiba is under pressure to restructure in the wake of a $1.3 billion accounting scandal while Fujitsu has seen PC profitability slip away as a weaker yen has inflated the cost of imported parts.

Combining PC operations would create a company with around 1.2 trillion yen ($9.8bn) in sales and give greater economies of scale that would help with procurement costs. But analysts see prospects of a return to past days of thriving sales as slim given that the two account for just 6 percent of global PC sales.

“It is uncertain whether or not the new integrated company could recover international competitiveness,” said Takeshi Tanaka, senior analyst at Mizuho Securities.

A combination would come on the heels of Sony Corp hiving off its PC business into unlisted Vaio Corp last year. Some domestic media reported that Vaio would also be part of the new venture but a spokeswoman for the company denied it was in talks with any firm about its PC operations.

That $9.8bn is an annualised revenue figure for both companies’ PC divisions – though there may be other products in there. (Their accounts don’t split out PC revenues directly.) For comparison, Asus and Acer each had annualised PC revenues of $8.5bn in 2014.
link to this extract


Design: meet the internet — Figma Design » Medium

Dylan Field:

When we started working on Figma, we knew it was possible to build a fast and stable graphics tool in the browser, but we had no idea how hard it would be. From vector rendering to font layout to a million performance edge cases, getting here hasn’t been easy. Designers have high expectations for a tool they rely on every day! After dogfooding Figma internally for the past eighteen months and working closely with alpha customers, I’m confident we’ve reached this high bar.

While the technical achievement of building a vector based UI design tool in the browser is exciting, I’m even more excited by the collaborative possibilities we’re starting to unlock. Whether you’re sharing a design with a link, giving contextual feedback or setting shared brand colors for your team to use, Figma makes it easy to work with your team.

If you can do it in a browser it isn’t real work, of course.
link to this extract


Wearable technology in the car » Canadian Automobile Association

Mark Richardson:

Jeffrey Macesin says he was changing the music playing through his car speakers when the Montreal police officer pulled him over and charged him with distracted driving.

The music was coming from his iPhone and wired into the car’s stereo, but the phone was tucked away in his bag, out of sight. In fact, he was using his Apple Watch to change the track, another potential new distraction in a world increasingly crowded with them.

Macesin says he was astonished by the ticket, which carries a $120 fine in Quebec and four demerit points.

“I understand (the officer’s) point of view,” he told CTV in May, “but the fact is, he thought I was using my phone and I wasn’t using my phone – I was using my watch. I tried explaining this to the guy and he just ignored me. I told him I’d see him in court.”

I sent Macesin numerous requests for a chat but he didn’t respond – maybe his lawyer told him to keep quiet. But he acknowledged in outtakes to CTV that his left hand was on the wheel – the same arm that wears his new Apple Watch – and he was tapping on the watch dial with his right hand to change tracks when the officer saw him from an overpass. The Apple Watch was connected wirelessly to his iPhone and controlling its functions.

The actual charge is that he “drove a road vehicle using a hand-held device equipped with a telephone function,” and his argument against it, he said, is that a watch is not “hand-held” – it’s worn on the wrist. “That’s where it gets really controversial,” he said to CTV. “Is it? Is it not? But I think this needs to be talked about.”

Similar to the Google Glass driving ticket case (which was dismissed)?
link to this extract


Errata, corrigenda and ai no corrida:

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


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

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

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

Kate Meyer:

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

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

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

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

link to this extract


Ad tech stocks keep falling » WSJ

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

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

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

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


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

Neil McAllister:

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

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

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

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

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

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


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

Brian Barrett:

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

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

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

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


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

Alistair Barr:

“Don’t be evil” is so 2004.

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

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

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

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

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

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

link to this extract


Apple patent for iPhone with wraparound screen » Business Insider

Lisa Eadicicco:


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

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

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

Apple’s been doing this since 2013, which implies it thinks it’s a fruitful thing to follow. Notice there’s no home button. (10yo’s opinion: “they haven’t thought this through. People drop their phones and if you have a wraparound one it will break.”)
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FBI: We unmasked and collared child porn creep on Tor with spy tool » The Register

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

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

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

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

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

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

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

Daniel Wolfe:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Aaron Lee and Adam Hwang:

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

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

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

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


Start up: now on email!, video adblocking, Toshiba’s PC loss, iOS 9 for enterprise, and more


This is the hamburger menu you’re looking for. Photo by jpellgen on Flickr.

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A selection of 8 links for you. May contain nuts. I’m charlesarthur on Twitter. Observations and links welcome.

Adblockers hit another market: video » Monday Note

Frederic Filloux:

Using its thorough analytics, YouTube was first to understand that viewers should be given the opportunity to skip videos ads. This markedly increased the value of actually viewed clips.

But the damage is done. With ad blockers, the tragedy is that one bad apple contaminates the whole crate. Once installed, the adblocker will indiscriminately eliminate ads from all sites. The few that were willing to preserve a decent user experience were washed away.

Between April and June 2015, SecretMedia, teaming up with with JW Player, reviewed the data from one billion devices in 42 countries. Here, precautions are warranted: SecretMedia, based in New York, sells an anti-adblocking solution for video; its clients are mainly broadcasters. But even though SecretMedia has a vested interest in darkening the picture, its conclusions are consistent with other surveys in the US and Europe.

The point about the bad apple contaminating the crate is key. Oh well, iOS 9 comes out today – and tons of people will begin deploying adblockers. Let’s watch.
link to this extract


​Mozilla quietly deploys built-in Firebox advertising » ZDNet

Steven Vaughan-Nichols:

Darren Herman, Mozilla’s VP of Content Services, announced in May 2015 that “Suggested Tiles represents an important step for us to improve the state of digital advertising.”

Then, this summer, Mozilla quietly launched Suggested Tiles, the organization’s first commercial ad product. Well, it will be ads. At the moment, Mozilla claims it’s not getting paid for them.

Herman explained, “Since early August, we have been delivering promoted content provided by our first wave of partners including Yahoo, a number of top tier news titles including Fortune Magazine and Quartz, and mission-oriented partners such as the Make-a-Wish Foundation and the Electronic Frontier Foundation.”

Not sure that’s going to be popular.
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Random thoughts on the new Apple TV » Medium

Ouriel Ohayon of Appsfire:

Most apps live out of ads. Most apps are Free. What was not said today is whether TV apps will be able to monetize with ads the same way iphone apps are monetized with ads. This is a big deal not just for monetization but also for discovery. Ads are one of the key channels for discovery and if no native ads are allowed in TV apps then the only way to get discovered is via the TV app store: meaning you have zero chance unless featured by Apple. I doubt Apple will completely ignore that question: Ads on TV can be a huge opportunity (including for iAds). They may not be ready for it just yet.

But what that means for app developers: get ready to suffer to get your free TV app (or paid app) discovered and monetized.

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Toshiba loss on weak TV, PC sales boosts case for revamp » Reuters

Makiko Yamazaki:

Toshiba Corp swung to a first-quarter loss on weak PC and TV sales, raising pressure on its new chief executive to speed up a business revamp in addition to improving governance after a $1.3bn accounting scandal.

The laptops-to-nuclear power conglomerate reported an April-June operating loss of 10.96bn yen ($91m) on Monday compared with a ¥47.7bn profit a year earlier.

Specifically looking at the PC business – which is the one under stress – the Toshiba financials say “The Lifestyle Products & Services segment saw significantly lower sales, reflecting significantly lower sales in the Visual Products business, which includes LCD TVs, and the PC business, due to a shift in focus to redefined sales territories and other factors.
The segment as a whole saw deteriorated operating income (loss), reflecting deteriorated operating income in the PC and Home Appliances businesses.”

Specifically, the PC business shrank from a quarterly ¥169.4bn ($1.4bn) a year ago to ¥116.8bn ($970m) in the April-June period. And to a loss. How long can Toshiba’s PC business carry on?
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Apple makes its biggest push to date into the enterprise » Re/code

Sean Ginevan, sr director of strategy, MobileIron:

With iOS 9, Apple is introducing features that will more easily enable IT to control iOS devices and automate provisioning of software. Using iOS 9, an enterprise can provision apps from the App Store silently, and disallow the user from installing their own applications. The operating system also makes it easier to place devices into supervised mode, which enables capabilities like disabling iMessage and locking device settings, round out the abilities to make an iPad Pro more suited to mission-specific tasks enterprise IT wishes to deploy them for…

…Three features have been introduced in iOS 9 that address that issue [of data going to non-managed devices]. The first allows enterprise IT to decide which applications are “managed,” meaning the data within them is owned by IT. Prior to iOS 9, if a user installed a business app from the App Store, then the app was “unmanaged” and could not interact with enterprise data. The user would have to reinstall the app over again through their corporate app storefront to make it managed. Now, enterprise IT can easily flag which apps are managed and reduce the user intervention required.

Second, iOS 9 provides enhanced controls over AirDrop. Prior to iOS 9, the only way to prevent corporate data from being shared with an unauthorized device was to turn off AirDrop completely. Now, enterprises can configure iOS 9 such that managed applications can’t have their data shared out via AirDrop.

Third, Apple decided that “simple passcodes,” will now require a minimum of six characters when a device with TouchID is enabled.

MobileIron is now up against BlackBerry/Good Technology in aiming to manage enterprise iOS devices.
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Hamburger menu, the most recognizable thing on the planet » DeveloperTown

Randy Fisher:

Using eye tracking software, we ran 25 people through a series of tasks to gather viewing data. We used Google Inbox as the test site, but created two different versions that were presented at random. Version 1 was Inbox exactly as it is currently designed today with a hamburger menu, and Version 2 was another version we created with a horizontal menu of the same main menu choices hidden in the hamburger.

What happened next will [pick from menu above]
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Why tablets are the future of computing » WSJ

Christopher Mims:

Take Intel’s coming line of Skylake chips, which CEO Brian Krzanich has said will enable thinner, lighter notebook PCs with better battery life. All of this will be possible because the chips will be more efficient, with some Skylake chips drawing less than 4½ watts, says IT analyst Patrick Moorhead.
“That power envelope is the first time you can do a fanless device, and fanless means thin,” says Mr. Moorhead. In other words, those svelte, MacBook Air-like “ultrabooks” Intel has been touting have the potential to turn into ultra tablets with detachable keyboards.

These devices won’t just be running Windows, of course, because manufacturers also have plans to sell them with Google’s Chrome operating system and even a version of the Android OS modified to function like a full desktop operating system.

What’s just over the horizon is a weird moment in computing history, when every major desktop and mobile OS, with the notable exception of Mac OS, will be competing on devices with the same ultra tablet form factor. With Windows 10, Microsoft has already blurred the lines between a mobile and a desktop OS, and now Google, Apple and others are following suit.

Arguably it should be “why 2-in-1s are the future of computing”, but it would make the headline unwieldy. Does this mean the Ubuntu Edge idea of a mobile phone you plug into a keyboard/display becomes feasible soon? It seems an idea that comes and goes – some times it’s good (Handspring had a good version in the early 2000s), some times it’s bad (Motorola Atrix).
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Notebook retailers in Europe having difficulty clearing inventory » Digitimes

Aaron Lee and Joseph Tsai:

As the year-end holidays approach, the [upstream supply chain] sources are concerned that the retailers may reduce their notebook prices further in order to quickly clear up their inventory, but such a move is expected to greatly impact notebook brand vendors’ profitability and affect overall notebook sales in the second half.

The sources pointed out that brand vendors such as Lenovo and Hewlett-Packard (HP) have been encouraging their retail partners to stock up since May by offering them high commissions. However, weak demand and Windows 10’s failure to kickstart a PC replacement trend have caused the retailers to suffer from high inventory pileup despite their aggressive promotions.

Acer and Asustek Computer, neither of whom has used the high-commission strategy, are still expected to be affected as the retailers are selling competitors’ notebooks at a much lower price range, forcing the two firms to follow suit or risk losing market shares. Currently, Acer and Asustek take up about 30-40% of Europe’s notebook sales.

Asia Pacific is also seeing weakening notebook demand amid a slowing China economy. The PC market in the US is the only one seeing meaningful growth, but only US-based vendors HP, Dell and Apple will benefit.

I’d guess the “sources” in this story aren’t too far from Asus and Acer.
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Start up: adblocking animus, Amazon’s aims, Ubuntu phone reviewed, the iPod Watch, and more


“They say this replacement can’t be hacked remotely!” Photo by Hugo90 on Flickr.

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

New iPhone apps will include ad blockers for the mobile web » MIT Technology Review

Tom Simonite:

Some [iOS developers] are now testing ad blocking apps they intend to release when iOS9 becomes available. Their results suggest these apps could be popular. For example, when Dean Murphy, an app developer based in the U.K., hacked together an ad blocker in about an hour earlier this month, he found it slashed the time taken to load the popular Apple blog iMore from 11 seconds to just two seconds.

He is now working to release a fully polished ad blocker called Crystal, and expects there will be many others when iOS9 launches. “Apple has laid a solid foundation for quality ad blocking applications,” he says.

One of Murphy’s competitors will be an app called Purify, created by Chris Aljoudi, who leads development of the desktop ad blocker uBlock, which he says has over one million active users. A video of Purify in action shows how it makes a news site load faster and strips pre-roll video ads from YouTube. Aljoudi says his tests have showed that Purify cuts Web browsing data usage by about a quarter—which could cut some people’s data bills and extend battery life. Both Aljoudi and Murphy intend to make their apps cheap, but not free.

I think they’re going to make good money. Advertisers (and sites) have a problem coming their way. Here’s Purify at work:

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The Verge’s web sucks » blog.lmorchard.com

Les Orchard tried examining The Verge’s desktop site, and found it linked him to 47 third-party trackers:

I feel like someone just set up the entire vendor hall from an awful tech conference in my living room. Seriously, could you folks just not pick one or two or ten? Did you hit every booth and say “Yeah, cool, sign us up!” I feel thoroughly spindled & folded & researched, here.

As a webdev at Mozilla, I’ve been in hour-long meetings where we’ve agonized over whether it’s copacetic to include just one little Google Analytics snippet without notifying users and updating the privacy policy. But, I know we’re crazy in our own very special ways.

In former lives, I’ve worked at ad agencies and digital marketing companies. I’m no stranger to conversations that revolve around partners & bizdev & analytics & media buys. I can only imagine things have intensified & evolved since I’ve been out of those trenches.

Still – and maybe this is the Mozilla brain-damage talking – I can’t imagine a sane conversation that resulted in The Verge extending an invitation to over 20 companies to set up shop on my computer with every page visit.

The reckoning is moving just that bit closer each day. Once a significant number of people start getting faster, better experiences from using adblockers (or tracker-blockers), they won’t care that the ads aren’t targeted. Newspaper and magazine ads didn’t use to follow you around the room, and they were quite a good business.
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I got my music back. At least most of it » Loop Insight

Jim Dalrymple, after the debacle of last week:

So now I have the iTunes Match service that I pay for separately, and Apple Music, both of which use iCloud Music Library. There is really no way to get away from them if you want to use the latest and greatest from Apple.

I’ll admit, I’m still trying to get my head around how this works.

Some of the songs I own were incorrectly tagged as Apple Music, but that’s been fixed too, which means they show up correctly in iTunes. That is great news.

However, I’m still missing a couple of hundred songs. Apple’s theory is that I deleted them—that when I was trying to fix Apple Music, I mistakenly deleted my own files. While I concede that it is within the realm of possibility that I deleted my own files, it doesn’t make sense to me.

Apple is clearly struggling with Apple Music – a colossal effort launched in a huge number of territories – which is why my advice would be not to get worked up about precisely what seems to be working or not at present. And especially not to delete anything that you think you might own.
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Ubuntu Phone review: years in the making, but still not consumer-ready » Engadget

Jamie Rigg:

I get the idea of Scopes [which are like Live Tiles in Windows], kind of. They are supposed to give the user a personal experience, remove their reliance on walled apps and bring content to the forefront. I just don’t think Scopes deliver, or maybe I’m just so used to the app-first experience that I’m having trouble adapting to the Scope way of doing things. And if that’s the case, then most people will be in the same boat. My main problem with Scopes is that I feel I’m being bombarded with content. If I want to check out upcoming concerts on an iOS/Android device, I’d load up the Songkick app. But when that’s not what I’m looking for, I don’t really want to see Songkick listings permanently displayed on my phone, like I’m being advertised to. You could argue the solution is to remove the Songkick feed from the Scopes it populates. But, if I was constantly adding and removing sources from Scopes when they are or aren’t relevant, I don’t see how that’s preferable to having dedicated apps that offer a better experience.

It seems like there’s just no way to create a new user interface at present, certainly on a mobile screen. The gigantic gravitational field of the app-driven iOS/Android system precludes it.

Also, this sounds like crap.
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Toshiba’s woes show how PC sales slump is squeezing big tech firms » The Guardian

I wrote about the Others:

It is whispered among some analysts that only the preinstallation of third-party antivirus programs – which try to get users to sign up to subscriptions – keeps some PC makers afloat at all, owing to the fees they receive from antivirus software firms.

It was the PC business that triggered the current turmoil at the Japanese giant [Toshiba], after an internal auditor asked in late January to look at the accounts for the company’s laptop business. That eventually concluded with an examination by an external panel, whose 294-page report noted “inappropriate accounting” in various business segments, including those “relating to component transactions” in the PC business.

In a statement on 21 July it said that 111bn yen (£580m) of assets in the PC business in the past six financial years were “under consideration” for re-evaluation. That could affect its financial results, which will be finalised by 31 August. But even in its most recent quarterly report, before any restatement, Toshiba said that its PC business recorded restructuring costs of 46bn yen in the previous three quarters, and that otherwise it “would have recorded positive operating income over three consecutive quarters”.

46bn yen is $370m. Is Toshiba really saying it made an average operating profit of $123m per quarter in the PC business? That’s as much as Asus, which is one of the biggest makers. Seems unlikely.
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Twitter is deleting stolen jokes on copyright grounds » The Verge

Dante D’Orazio:

some people just copy good tweets from other people and act like they came up with the 140-character witticism on their own. This has been going on since the beginning of Twitter.

It now appears Twitter is using its legal authority to crack down on these tweet-stealers. A number of tweets have been deleted on copyright grounds for apparently stealing a bad joke.

As first spotted by @PlagiarismBad, at least five separate tweets have been deleted by Twitter for copying this joke:

saw someone spill their high end juice cleanse all over the sidewalk and now I know god is on my side
— uh (@runolgarun) July 9, 2015
Olga Lexell, who, according to her Twitter bio, is a freelance writer in LA, appears to be the first person to publish the joke on Twitter. In a tweet posted this afternoon, she confirmed that she did file a request to have the tweets removed.

I simply explained to Twitter that as a freelance writer I make my living writing jokes (and I use some of my tweets to test out jokes in my other writing). I then explained that as such, the jokes are my intellectual property, and that the users in question did not have my permission to repost them without giving me credit.

She added that most of the accounts that were reusing her tweets without accreditation were “spam accounts that repost tons of other people’s jokes every day.” This also isn’t the first time Twitter has complied with a request like this: Lexell tells The Verge that she’s filed similar requests for other jokes. Twitter staffers typically remove the offending tweets “within a few days” without asking Lexell any follow-up questions.

Couldn’t she, you know, just not tweet them but try them on other people? Or try them from a protected account? This is quite weird.
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Pakistan to shut down BlackBerry services by December for “security reasons” » Reuters

Syed Raza Hassan:

Pakistan, a nuclear-armed nation of 180 million people, is plagued by militancy, criminal gangs and drug traffickers.

“PTA has issued directions to local mobile phone operators to close BlackBerry Enterprise Services from Nov. 30 on security reasons,” an official with the Pakistan Telecommunications Authority said in a text message.

He asked not to be named due to the sensitivity of discussing communications and intelligence.

BlackBerry was not immediately available to comment.

A report released this week by British-based watchdog Privacy International said Pakistan’s powerful military intelligence agency, the Inter-Services Intelligence (ISI), was seeking to dramatically expand its ability to intercept communications.

BlackBerry encrypts data such as emails and its BlackBerry Messenger messages sent between a user’s phone and public networks, ensuring greater privacy for users but making life harder for police and intelligence agencies.

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Fiat Chrysler recalls 1.4 million vehicles to defend against hacks » Bloomberg Business

Mark Clothier:

Fiat Chrysler Automobiles NV is recalling about 1.4 million cars and trucks equipped with radios that are vulnerable to hacking.

The company was already distributing software to insulate connected vehicles from illegal remote manipulation after Wired magazine published a story about software programmers who were able to take over a Jeep Cherokee being driven on a Missouri highway. Fiat Chrysler reiterated that it’s not aware of any real-world unauthorized remote hack into any of its vehicles.

It stressed that no defect was found and that it’s conducting the campaign out of “an abundance of caution.”

Fiat Chrysler said it has blocked unauthorized remote access to certain vehicles systems via an over-the-air update on Thursday.

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Amazon and the “profitless business model” fallacy » Remains of the Day

Eugene Wei (who used to work at Amazon):

There are very few people in technology and business who are what I’d call apex predators. Jeff [Bezos] is one of them, the most patient and intelligent one I’ve met in my life. An apex predator doesn’t wake up one day and decide it is done hunting. Right now I envision only one throttle to Jeff’s ambitions and it is human mortality, but I would not be surprised if one day he announced he’d started another side project with Peter Thiel to work on a method of achieving immortality.

One popular thesis among Amazon profitability skeptics is that Amazon can’t “flip a switch” and become profitable. The most common guess as to how Amazon flips the switch is that it will wait until it is the last retailer standing and then raise prices across the board, so Amazon skeptics argue against that narrative possibility.

But “flipping a switch” is the wrong analogy because Amazon’s core business model does generate a profit with most every transaction at its current price level.

In that light, it’s wrong to look at the AWS “profits” as a proportion of revenue and say “wow”. The profit number is meaningless. Amazon can make any part of the business look as profitable or unprofitable as it likes.
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The future of Apple Watch will be more like the iPod’s than the iPhone’s » Beyond Devices

Aaron Miller (in a guest post on Jan Dawson’s site):

First, and most importantly, the Apple Watch is an ecosystem product. Right now, the Watch only works as an extension of the iPhone. Its upper boundary is the total number of iPhones in the world.

This makes the Watch much more like the iPod than the iPhone. From the time the iPod first launched, it was a product tied to a computer, first to Macs then eventually to Windows computers as well. (Remember the Digital Hub strategy?) Just as the iPod existed to enhance the Personal Computer + iTunes ecosystem, the Watch exists to enhance the iPhone ecosystem. The iPhone, even if tied to iTunes early on, was never merely an ecosystem enhancement—nor designed to be one, like the iPod or Apple Watch have been.

Naturally, we expect the Watch’s reliance on iPhones to change over time. LTE and GPS seem like inevitable Apple Watch additions, for example, as does a Watch-native App Store. With true third-party apps coming soon, reliance on the iPhone will diminish even more. But there’s one limitation that may always tie Apple Watches to iPhones: the screen…

…the Apple Watch category is not just smartwatches. The correct category is wearables, and wearables right now, at the birth of the Apple Watch, are very similar to the early MP3-player market. Some are huge and multi-functional. Some are svelte and limited. Some are banking on unique features trying to find a niche.

Wonder what other wearables Apple might have in mind. What’s the iPod shuffle version of a Watch?
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