Author: Nick Farrell

IBM gives cash to top suits

44ce1d7353cc797d6d0ad093f04f32c7Big Blue might be seeing its profits drop down the loo, but that has not stopped it paying bonuses to its top suits.

IBM has brought back annual performance bonuses for its chief executive and her top lieutenants for 2014 despite falling profits and a tumbling stock price.

According to a regulatory filing, the outfit withheld annual bonuses in 2013 at the executives’ own request.  The company has had more than 11 quarters of falling profits and is still trying to lose staff.

The bonuses returned as a feature of IBM’s executive compensation for 2014, according to a document filed with securities regulators on Friday, despite the fact that IBM’s net profit from continuing operations fell 7 percent last year and its stock shed about 14 percent.

IBM CEO Virginia Rometty will get a $3.6 million annual incentive payout for 2014, according to the filing. Chief Financial Officer Martin Schroeter and three other executives or advisers were also listed as getting smaller annual incentive payouts.

Rometty will receive a base salary of $1.6 million for 2015. This is her first rise in pay from the $1.5 million she got each of the last three years after taking up the post of CEO at the beginning of 2012.

She will also get a target annual incentive award of $5 million for 2015 and a long-term stock grant worth $13.3 million, which would be payable in 2018, according to the filing.

IBM last year withdrew its long-term plan to hit $20 per share in operating earnings for 2015 as it failed to get the sort of focus on higher-margin businesses such as security software and cloud services.

IBM has been divesting underperforming businesses in an attempt to move into the new era of cloud computing, a struggle shared by other established technology leaders.

No bonuses for the lesser suits, but at least they are not being fired.

Big Data analytics are not up to snuff

3921968993_9bccb97118_zCompanies relying on Big Data analytics might be disappointed to discover that they are not so good at finding a needle in a haystack after all.

Currently the best way to sort large databases of unstructured text is to use a technique called Latent Dirichlet allocation (LDA) which is a modelling technique that identifies text within documents as belonging to a limited number of still-unknown topics.

According to analysis published in the American Physical Society’s journal Physical Review X, LDA had become one of the most common ways to accomplish the computationally difficult problem of classifying specific parts of human language automatically into a context-appropriate category.

According to Luis Amaral, a physicist whose specialty is the mathematical analysis of complex systems and who wrote the paper, LDA is inaccurate.

The team tested LDA-based analysis with repeated analyses of the same set of unstructured data – 23,000 scientific papers and 1.2 million Wikipedia articles written in several different languages.

Not only was LDA inaccurate, its analyses were inconsistent, returning the same results only 80 percent of the time even when using the same data and the same analytic configuration.

Amaral said that accuracy of 90 percent with 80 percent consistency sounds good, but the scores are “actually poor, since they are for an easy case.”

The base of data for which big data is often praised for its ability to manage – the results would be far less accurate and far less reproducible, according to the paper.

The team created an alternative method called TopicMapping, which first breaks words down into bases (treating “stars” and “star” as the same word), then eliminates conjunctions, pronouns and other “stop words” that modify the meaning but not the topic, using a standardized list.

This approach delivered results that were 92 percent accurate and 98 percent reproducible, though, according to the paper, it only moderately improved the likelihood that any given result would be accurate.

The paper’s point was that it was not important to replace LDA with TopicMapping, but to demonstrate that the topic-analysis method that has become one of the most commonly used in big data analysis is far less accurate and far less consistent than previously believed.

 

DLink routers vulnerable to Bulgarian exploit

khankrumA Bulgarian ethical hacker has found a hole in the firmware of DLink routers which make them vulnerable to remote changing of DNS settings and, effectively, traffic hijacking.

Todor Donev, a member of the Ethical Hacker research team, says that the vulnerability is found in the ZynOS firmware of the device, D-Link’s DSL-2740R ADSL modem/wireless router.

The firmware is used in gear made by D-Link, TP-Link Technologies and ZTE.

The flaw allows attackers to access the device’s Web administration interface without authentication, and through it to modify the DNS settings, which could allow them to redirect users to malware-laden and phishing sites and prevent them to visit legitimate sites for OS and software updates (including security software).

Donev released exploit code for the flaw in a security advisory and said that it could be  exploited remotely if the device’s interface is exposed to the Internet.

It is not the first time that the firmware has been found a little holey. In March 2014, Internet security research organization Team Cymru uncovered a global attack campaign that compromised over 300,000 home routers and changed their DNS settings. A different vulnerability in ZynOS was exploited in that attack and one of the techniques used was likely CSRF.

 

Microsoft fires up Android kicker

robby the robotSoftware supremo Microsoft is investing in a start-up that wants to give Google Android a good kicking.

Microsoft has written a cheque to power up Cyanogen, which is building a version of the Android mobile operating system outside of Google’s auspices.

Apparently Microsoft is a minority investor in a roughly $70 million round of equity financing and the financing round could grow with other strategic investors that have expressed interest.

All of them are keen that to help Cyanogen to diminish Google’s iron grip over Android.

Microsoft offers its own Windows Phone mobile operating system which should be doing its own thing to kill off Android.  But Windows Phone has only about 3 per cent market share, which may be prompting Microsoft to consider unconventional steps.

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

For Microsoft, that means less exposure for its Bing search engine, which is up against Google search. It also could limit growth of other Microsoft software products.

Cyanogen has a volunteer army of 9,000 software developers working on its own version of Android.

Kirt McMaster, Cyanogen’s chief said his company’s goal is to take Android away from Google.

It had raised $100 million to date. Previously the company had disclosed that it raised $30 million of funding.

Cyanogen recently signed a deal with Indian smartphone maker Micromax to ship handsets with Cyanogen’s software and is close to announcing more such deals, say people familiar with the matter.

Google sunk by the US dollar and Facebook

eric-schmidt-testimonyThe cocaine nose jobs of Wall Street clutched the spaces where their hearts should be after the search engine Google announced that its revenue growth had been stalled by the strong US dollar.

Google’s revenue grew 15 percent in the fourth quarter but fell short of Wall Street’s target thanks to declining online ad prices and unfavorable foreign exchange rates.

The outfit appears to be losing ground to Facebook on the advertising front. Facebook reported on Wednesday that mobile ads on its network doubled year-over-year during the fourth quarter.

Google said the “cost per click,” decreased 3 percent year-over-year in the fourth quarter, while the number of consumer clicks on its ads increased 14 percent.

Analysts had expected  gains in cost-per-click and they are now saying that Google’s business is slowing and it is going to look worse as the dollar strengthens.

Consolidated revenue in the three months ended Dec. 31 totalled $18.10 billion, compared to $15.71 billion in the year-ago period. Wall Street expected revenue of $18.46 billon.

Chief Financial Officer Patrick Pichette said in a statement that revenue grew “despite strong currency headwinds”.

Net income rose to $4.76 billion from $3.38 billion a year earlier.

US redefines broadband

oldphoneThe US FCC has redefined the minimum spec required to define a service as broadband.
As part of its 2015 Broadband Progress Report, the raised the minimum download speeds needed from 4Mbps to 25Mbps, and the minimum upload speed from 1Mbps to 3Mbps.

At the stroke of a pen it triples the number of US households without broadband access and means there should be some jolly cross people miffed that they bought something they thought was broadband but isn’t.

Currently, 6.3 percent of US households do not have access to broadband under the previous 4Mpbs/1Mbps threshold, while another 13.1 percent do not have access to broadband under the new 25Mbps downstream threshold.

FCC Commissioner Tom Wheeler was vehement in his support for the new broadband standard. “When 80 percent of Americans can access 25-3, that’s a standard. We have a problem that 20 percent cannot. We have a responsibility to that 20 percent.”

FCC Commissioner Mignon Clyburn said: “We are never satisfied with the status quo. We want better. We continue to push the limit, and that is notable when it comes to technology… as consumers adopt and demand more from their platforms and devices, the need for broadband will increase, requiring robust networks to be in place in order to keep up. What is crystal clear to me is that the broadband speeds of yesteryear are woefully inadequate today and beyond.”

However there is a push to make the minimum broadband standards far past the new 25Mbps download threshold, up to 100Mbps.

FCC Commissioner Jessica Rosenworcel thinks the new threshold should be 100Mbps.

However, that would anger the telcos and cable providers who currently call the shots on internet connections in the US. Many of them would prefer to see dial up defined as broadband. As it is changing the national broadband standards to 25Mbps down and 3Mbps up is a bold move for the FCC.

Companies like AT&T and Verizon, which employ DSL services to a notable number of their users and AT&T’s fastest DSL offerings only reach 6Mbps down, while Verizon’s DSL speeds top out at 15Mbps.

In a letter sent to the FCC last week, the National Cable & Telecommunications Association (NCTA) made known its objections to any changes to current broadband standards, stating that examples used by supporters of raising the broadband standards “dramatically exaggerate the amount of bandwidth needed by the typical broadband user.”
The NCTA told the FCC that 25Mbps down isn’t needed for 4K streaming and that users aren’t even interested in higher quality content yet and they will take what ever the suppliers will give them or else they will have to move somewhere else.

The US is currently ranked 25th in the world in broadband speeds, thanks mostly to the fact that the telcos have nearly monopolistic power in the US and politicians in their backpocket.

 

Intel hears Bell and changes its approach

Genevieve_Bell_Workers_in_the_world For years Intel has been an engineer’s company, pushed the technology of its chips, and followed a religion based on shrinking and tick following tock.  However, it seems that its mindset is changing – and it appears to be something to do with the influence of its vice president anthropologist Genevieve Bell.

Yesterday Intel held a product announcement for its 5th Gen Intel Core vPro Processor. In the bad old days we would have been given a spec sheet of all the product’s wholesome goodness and be told how great it was. We would have popped back to the office with a picture of a chip and wrote it up something like “Intel wants a world without wires”.

But the actual technology almost took a back seat – instead there was Bell.

Bell told us about how the workplace was changing along similar lines to the Industrial revolution. The needs of the Industrial revolution created a demand for documentation and lead to the evolution of the typewriter. The typewriter transformed the office and lead to a more diverse workplace, with more women entering for the first time.

Bell argued that technology is doing the same thing now and the workplace is changing and becoming more diverse as older people now work longer and with more ethnic diversity.  This change is as a result of evolving technology and a move to more creative and collaborative business practices.

So what does this have to do with the 5th Gen Intel Core vPro Processor? Answering that question suddenly laid bare Intel’s cunning plan and explains  Chipzilla’s actions of the last few years. The concept of Intel actually having a cunning plan is surprising, after Intel appeared to miss the so-called mobile revolution, we thought its direction was similar to that of a headless chicken, but Bell seems to be encouraging a different role, which it if pulls off could see Intel at the centre of significant workplace change.  Intel is thinking less about the technology, and more about how that technology is going to change the workplace. It is creating small technology combos which could make for bigger changes – not, as it has done in the past in technology, but in the workplace.

Tomasz Klekwski, Intel’s EMEA business market manager said that the technology itself was not enough to bring about the sorts of transformations which Intel wants to take place.  In other words, it is not just the chip – it is how the chip fits into the organisation and what transformations the organisation has a result.

5th Gen Intel Core vPro Processor, for example, has wireless features which enable companies to dump a huge amount of fiddly networking cabling.  It creates technology which can wirelessly and automatically connect to video screens in meeting rooms and charge and connect laptops but also build hot deskwork environments.

All this is a mobile future but it is far different from the consumer based technology being pushed by Apple and its new chum IBM which emphasises tablets, BYOD and simply packages consumer tech for businesses.

It is a vision which has an Intel notebook at its centre – admittedly one that might turn into a laptop, is super-thin and with a long battery life, but Chipzilla’s traditional money-spinner nevertheless.  But listening to Bell and Tom Garrison, Vice President, PC Client Group sell the idea in its historic context it starts to make sense.

As Garrison pointed out – consumer ideas do not work well in the business, and the money is rarely in consumer devices but more in engineering business changes.

The concept that this is all marketing bollocks is not far from the mind of any sceptical journalist, but if you accept the historical approach to the rise of technology touted by Bell you had to admit, Intel is onto something better than simply repackaging consumer fads.

If she is right, then it did not matter too much that Intel missed the mobile computing trend. Sure, it was big enough and should have had a chip in place, but mobile phones and tablets, even the Internet of things are going to be the side-salad in any serious business evolution. It will be small things that make a difference and if you know what the business is evolving into you can make the products it needs.

Intel will have a hard time selling this vision – both to IT journalists and its own staff.  The first thing we noticed yesterday was that Intel suits dominated the poorly dressed media – in fact we had the impression that the meeting was more being held for them. Secondly many hacks walked away from the event to write headlines like “Intel wants a world without wires”. Or to sing the praises of the 5th Gen Intel Core vPro.

But as the meeting pointed out, much of the technology of the 5th Gen Intel Core vPro has been around for a decade and slowly evolving. What Intel is noticing is that people are finally starting to switch on and use its functionality. This suggests that companies are getting what IT hacks and technology companies haven’t – it is not about the technology stupid it is how it creates a change.  If Intel is the only one to gets that, it will be the only one which makes a lot of money as the workplace changes.

Western spooks behind Regin

 james_bond_movie_poster_006Security experts at Kaspersky Lab have discovered shared code and functionality between the Regin malware and a similar platform  in a newly disclosed set of Edward Snowden documents 10 days ago by Germany’s Der Spiegel.

The link, found in a keylogger called QWERTY allegedly used by the so-called Five Eyes, leads them to conclude that the developers of each platform are either the same, or work closely together.

Writing in their blog, Kaspersky Lab researchers Costin Raiu and Igor Soumenkov  said that considering the extreme complexity of the Regin platform there’s little chance that it can be duplicated by somebody without having access to its source codes.

They think that the QWERTY malware developers and the Regin developers were the same or working together.

The Der Spiegel article describes how the U.S National Security Agency, the U.K.’s GCHQ and the rest of the Five Eyes are allegedly developing offensive Internet-based capabilities to attack computer networks managing the critical infrastructure of its adversaries.

QWERTY is  a module that logs keystrokes from compromised Windows machines; Der Spiegel said the malware is likely several years old and has likely already been replaced.

Kaspersky researchers Raiu and Soumenkov said QWERTY malware is identical in functionality to a particular Regin plugin.

Raiu and Soumenkov said within QWERTY there were three binaries and configuration files. One binary called 20123.sys is a kernel mode component of the QWERTY keylogger that was built from source code also found in a Regin module, a plug-in called 50251.

Side-by-side comparisons of the respective source code shows they are close to identical and sharing large chunks of code.

Regin was discovered in late November by Kaspersky Lab and it was quickly labelled one of the most advanced espionage malware platforms ever studied, surpassing even Stuxnet and Flame in complexity. The platform is used to steal secrets from government agencies, research institutions, banks and can even be tweaked to attack GSM telecom network operators.

 

 

Valve’s economist to sort out Greek economy

r846248_7947263Computer game outfit Valve’s economist Yanis Varoufakis is to be Greece’s new finance minister and tasked with the chore of sorting out the country’s stuffed up economy.

Yanis Varoufakis originally had the job of analyse and improving Valve’s  Steam Market but now has been appointed the new finance minister of Greece.

Obviously, Greece’s Euro debt crisis has been critical to Europe over the last few years as the country tried to save up a bit of cash to pay off its crippling debts. The new Greek government dominated by political party Syriza has pledged to stop starving the country to pay off Germans and the armed forces and start spending again.

The Greek economy was crippled by a high public sector wage and pension commitments and Varoufakis has been chosen to sort out the whole mess – preferably without a famous Greek strike.

While working at Valve, Varoufakis often cited nobel-prize winner Friedrich Hayek and classical liberal and Scottish philosopher and economist Adam Smith, when talking about the fundamentals of capitalism introduced in areas hitherto untouched. “Firms can be seen as oases of planning and command within the vast expanse of the market,” he previously wrote.

No one can say that his new job is not challenging, particularly when your history is making sure that  a computer games company does well and your main enemy is a bunch of fascists called the Golden Dawn.

Apple has record breaking results

apple-disney-dreams-snow-white-Favim.com-142405The Tame Apple Press is beside itself with joy as it reported that its favourite company had some rather good results.

Phrases like “smashed Wall Street expectations.” “record sales” and “largest profit in corporate history” were liberally used.

The company sold 74.5 million iPhones in its fiscal first quarter ended December  27, while many analysts had expected fewer than 70 million. Revenues rose to $74.6 billion from $57.6 billion a year earlier.

S&P analyst Howard Silverblatt claimed that Apple’s $18 billion profit was the biggest ever reported by a public company, worldwide and Apple’s cash pile is now $178 billion, enough to buy IBM.

The Tame Apple Press were even more excited when Apple Chief Executive Officer Tim Cook said the Cupertino, California-based company would release the Apple Watch, in April, nearly two years behind the market.

The press rushed to find analysts who said that Apple was jolly brilliant while Microsoft and IBM had disappointing results.

However, as you might expect there was an element of selective reporting. For example, analysts expected Apple to sell more iPhones in China than the US – it did not. Although sales in China were “up 70 percent on last year” sales behind the bamboo curtain were not that great last year. The Tame Apple Press praised the company’s partnership with China Mobile for being responsible for the increase in sales, ignoring the fact they predicted earlier that China sales would be blistering.

Unable to blame Apple, Reuters blamed the Chinese economic slow down for the poor Chinese outing and instead claimed that Apple was well positioned to do better next year.

Apple reported net profit of $18.02 billion compared with $13.07 billion a year earlier. Analysts had expected revenue of $67.69 billion.

Cooler heads pointed out that Apple would face problems next year because of the stronger dollar and predicted that things would not be as good. Apple predicted revenue of $52 billion to $55 billion in its fiscal second quarter, compared with Wall Street’s average target of $53.79 billion.

Meanwhile Cook was touting new shiny things to encourage more positive talk about the outfit.  Not only did he promise to release the iWatch which is now so out of date the specs were originally designed on the great pyramid, he talked about Apple’s new mobile payment service, Apple Pay which is, so far, to make much headway.

The largest profit in corporate history was Fannie Mae which made $84 billion in 2013.

Yahoo plans to spin off AliBaba stake

Ali_Baba_and_the_Forty_ThievesYahoo plans to spin off its 15 percent stake in China’s Alibaba as shareholders demand that it hand over to shareholders the cash it has made from its  prized e-commerce investment.

The Alibaba shares are worth valued at roughly $40 billion.

Shares of Yahoo rose about seven percent to $51.45 in after hours trading on Tuesday, following the tax-free spinoff announcement and earnings which just beat analysts forecasts even as its revenues slightly lagged estimates.

Selling the Alibaba stake could pressure on Yahoo Chief Executive Marissa Mayer to make quicker progress in strengthening Yahoo’s struggling media and advertising business.

Shareholders feel that Yahoo and its stake in Alibaba would be worth more separately, as long as the Alibaba shares are not subject to the standard 35 percent tax rate that would be incurred from selling the shares.

Yahoo is worth about $45 billion which includes its Alibaba stake of nearly $40 billion, meaning the current Yahoo share price assigns little value to the core business. Some investors believe the email, website and other operations are worth between $7 billion and $8 billion.

Mayer promised investors that the company’s display advertising revenue, which declined 4 percent in 2014, would return to growth this year. But the company’s forecast for revenue in the first quarter implied continuing problems.

Yahoo said that revenue, excluding fees paid to partner websites in the first quarter, would range from $1.02 billion to $1.06 billion, compared to the $1.09 billion last year.

Yahoo said its board of directors has authorized a plan to spin off the stake, tax-free, into a newly formed independent registered investment company. The stock of the company will be distributed pro-rata to Yahoo shareholders and the transaction is expected to close in the fourth quarter of 2015, Yahoo said.

The new entity will include Yahoo’s 384 million shares in Alibaba as well as an unspecified “legacy, ancillary” Yahoo business, the company said.

Yahoo’s revenue, excluding fees paid to partner websites, declined 1.8 percent year-on-year in the final three months of 2014 to $1.18 billion, just shy of Wall Street expectations.

 

Laser inventor dies

r6uhkgtsix9vtvl3pjd4The boffin who laid the foundations for the development of the laser has died. Charles Townes was 99.

Townes who won the Nobel Prize for Physics in 1964 is  best known as the “inventor” of the laser but he was also a pioneer in the field of infrared astronomy and was the first to discover water in space.

He first built a maser in the mid-1950s, which used microwave amplification rather than light.

At the time Gordon Gould at ARPA and Ted Maiman at Hughes Labs were working on similar research in the late 1950s. I Maiman who built a practical laser in 1960, but he used the published research of Townes.

Townes shared his 1964 Nobel Prize with Russian scientists N. G. Basov and Aleksandr Prokhorov because they were also working on the laser in the Soviet Union concurrently and independently of Townes.

Later in his life, he became famous for suggesting that one-day science and religion would one day merge, revealing the secrets of creation.

The committed Christian told some Harvard students: “I look at science and religion as quite parallel, much more similar than most people think and that in the long run, they must converge. It’s a fantastically specialized universe, but how in the world did it happen?”

He was honoured in 2005 with the Templeton Prize for contributions to “affirming life’s spiritual dimension.”

Townes never really stopped working and would show up at Berkeley until he became unwell last year.

He did live long enough for his laser to be turned into the sci-fi weapon that it was touted to be in the 1960s, although not long enough to see them strapped to sharks.

Circular Devices invents new use for old phones

history-of-headphones-1895 Circular Devices thinks that corporations can use discarded computing modules and smartphones to build supercomputers.

The outfit is working a modular smartphone concept, Puzzlephone, and hopes to ship working products before the end of the year. The idea is to increase the longevity of smartphones and reduce waste in the process.

The plan is to create a Puzzlecluster platform made out of the old phones and use it as a company supercomputer.

Alejandro Santacreu, CEO at Circular Devices, said that the Brain module includes the CPU, which will help power the clusters. The plan is also to reuse old battery modules for back-up power. Drawings of the Puzzlecluster architecture show a chassis with slots for the reused modules, which can then be interconnected with others to create the cluster. Just one unit could also be used as a desktop computer.

The first CPU modules should be available for reuse by 2017 so we are talking a long way into the future. But the goal is to deliver a scalable product which can be used by small and medium enterprises, public institutions and data centres. Potential applications include rendering and data analytics, according to Circular Devices. If the cost is low enough, hobbyists and students could use it to learn more about programming for parallel computing.

While corporates might be the only one which have enough old smartphones to create clusters, the work builds on the popularity of the Rasberry Pi single-board computer which is being built into supercomputer clusters as the moment.

 

Microsoft’s profit falls thanks to strong dollar

dollarSoftware giant Microsoft reported a fall in its quarterly profit as sluggish PC sales dampened demand for Windows software and the company struggled with the impact of the strong US dollar.

Shares of the world’s largest software company, which have surged to 14-year highs in the past few months, fell three percent.

The fall did not seem to faze the cocaine nose jobs of Wall Street who seemed to be expecting it. Not much can really stand up to a high dollar pressure and most thought the numbers were good enough.

Microsoft’s flagship Windows business has been under pressure for three years as PC sales have declined, although the market appears to be stabilising in recent months.

Currency shifts against the strong U.S. dollar also crimped profit in the fiscal second quarter, ended December 31, although Microsoft did not specify by how much. Microsoft gets almost three-quarters of its revenue from overseas, but a significant amount of that is still in US dollars.

Commercial licensing is chiefly sales of Windows and Office to business customers, which is Microsoft’s biggest revenue generator.

Microsoft reported profit of $5.86 billion for the latest quarter, compared with $6.56 billion last year.

Sales rose eight percent to $26.47 billion, largely due to the acquisition of Nokia’s phone handset business last year.

Analysts had expected revenue of $26.3 billion including some restructuring costs.

 

LG might sue over fire breathing snapdragons

dragonLG is behaving oddly over moves by Qualcomm to fix overheating problems in its Snapdragon 810 chip.

Samsung told Qualcomm it would not use the chip for its Galaxy S6 model because of overheating problems and Qualcomm suggested it would make a few modifications.

However LG, which is also using the chip, appears outraged. Its initial response to Samsung’s statement was that the chip never overheated and there were no problems.  Now it is threatening to take legal action against Qualcomm if it modifies its latest Snapdragon 810 chip.

Its argument is that if Qualcomm modifies the Snapdragon 810, it means that the company admits the chipset has a flaw. Then it could trigger legal disputes, a spokesLG said.

So in other words – LG claims there is nothing wrong with the chip, but if Qualcomm admits there is something wrong with the chip then it will sue.

The question here is then why LG did not detect the Snapdragon’s fire breathing qualities.

It has been suggested that Qualcomm will provide a modified chipset to Samsung, something that Qualcomm and Samsung Electronics declined to confirm.

The Snapdragon 810 is designed as a 20-nanometer flagship mobile processor for top-tier smartphones.

The system on chip (SoC) integrates the fourth-generation long-term evolution advanced model (LTE-A), dubbed category 6, and theoretically supports up to 450 megabits-per-second data download speed.

But Samsung was worried that the chipset had a serious “throttling” problem that forcibly limits the graphic processing performance when it overheats, reports said.

Analysts said that a chipmaker could modify a new chip before mass production and Qualcomm may update it if its major client Samsung is uncomfortable with the overheating problem.

Qualcomm has said it will start mass-producing the Snapdragon 810 in the first half of the year.

For Qualcomm, Samsung Electronics is one of the most important partners, so the company is likely to show some reaction to the overheating issue.