Smartphone shipments slow right down

threeiphonesShipments of smartphones worldwide slumped by 25.9 percent in 2014 and will fall again next year by 12.4 percent.

That’s the opinion of market intelligence company Trendforce which said 1.17 billion smartphones left the factories this year and 1.31 billion will ship next year.

The reason, according to Avril Wu, an analyst at Trendforce, is because the penetration rate “is already very high while the market is saturated”.

She said that Chinese brands will represent 17 percent of handset shipments in 2015 – with competition intense. Lenovo, Huawei, Xiaomi, Coolpad, ZTE and TCL are competing on price meaning their margins are as thin as a cigarette paper.  Trendforce thinks mergers and acquisitions over the next few years will be the inevitable conclusion of this trend.

Meanwhle, the iPhone 6 continues to sell well but brands using the Android and Windows operating systems find themselves competing on price.  This will continue in the coming year.

The 4G network, she says, is now in place and will mature next year, with Qualcomm taking the lead over Mediatek in the semiconductor infrastructure required.

Computers crack catalogue conundrum

University of Wisconsin-Madison campus (Wikimedia)Boffins at the University of Wisconsin-Madison (UWM) believe they’ve developed a computer system for extracting data from scientific publications that equals or even betters human ability.

The problem is that after machine reading, computers have difficulties figuring out even simple statements, so the scientists who devised the software program has used probability to decipher the text.

Christopher Ré, a professor of computer sciences, project managed the software development in a bid to quickly summarise, collate and index the mountain of data produced by scientists worldwide.

They tested their system called PaleoDeepDive against human scientists manually entering data into the Paleobiology database.  The software mimics the action of the human scientists and the machine accessed tens of thousands of articles.

Shanan Peters, a professor of science at UWM, said: “Ultimately, we hope to have the ability to create a computer system that can do almost immediately what many geologists and paleontologists try to do on a smaller scale over a lifetime: read a bunch of papers, arrange a bunch of facts, and relate them to one another in order to address big questions”.

Cops seize 292 domain names

euroflagzEuropol, in conjunction with US authorities and 25 police forces worldwide said 292 domain names used to sell counterfeit products have been seized.

Trademark holders had tipped the authorities off that counterfeit goods were being sold online and the domain names concerned are now in the hands of governments which formed part of the operation.

If people now go to the sites that formerly sold counterfeit goods, they will see a banner telling them the site has been seized.

Counterfeit products being sold included luxury goods, electronics, movies, music, pharmaceutical kit and other stuff.

The seizure is part of the authorities’ “in Our Sites” initiative aimed to protect people from buying crooked gear.  The operation has now seized 1,829 domain names since November 2012.

Rob Wainwright, director of Europol, said: “The infringements of intellectual property rights is a growing problem in our economies and for millions of producers and consumers.  Europol is committed to crack down on the criminal networks responsible.”

IBM goes Dutch on big cloud contract

blue_klompenBeleaguered Big Blue has signed a 10-year, multi-billion dollar deal to provide computer infrastructure services to Dutch bank Amro.

Amro thinks that the men in suits are exactly the sorts of types it wants running its cloud operations. However it is a case of “better the devil you know”. IBM has been running Amro’s computer services for a while now.

Under the first €1.5bn deal in 2005, 1,500 people in IT lost their jobs when the bank outsourced most of its IT to the global outsourcing arm of IBM.

At the time, IBM took over the management of the datacentres for the bank’s commercial and consumer clients, private clients, asset management, and new growth markets.

IBM has had some difficulty attracting much interest in its internet-delivered services, as it seems a bit outclassed by the likes of Oracle, Microsoft and Amazon.

IBM will provide fully managed services for mainframe computers, servers, storage and end-user computing as well as a help desk and other technical support. IBM did not disclose financial details of the deal.

Actually it has been a good few weeks for IBM. It recently won a 7-year outsourcing contract from Germany’s Lufthansa worth $1.25 billion that will see the U.S. company take over the airline’s information technology infrastructure services division and staff.

 

FBI warns of more North Korean cyber attacks

USmilitaryOUTThe Untouchables have warned businesses that North Korean hackers are using malicious software to launch a destructive cyberattack in the United States.

The alert appeared to describe the one that affected Sony, which would mark first major destructive cyber-attack waged against a company on US soil. Such attacks have been launched in Asia and the Middle East, but none have been seen in the United States. The FBI report did not say how many companies had been victims of destructive attacks.

Analysts think that the attack is a watershed event and that politics now serve as harbingers for destructive cyberattacks.

The five-page, confidential “flash” FBI warning issued to businesses last night provided some technical details about the malicious software used in the attack. It provided advice on how to respond to the malware and asked businesses to contact the FBI if they identified similar malware.

The malware overrides all data on hard drives of computers, including the master boot record, which prevents them from booting up.

“The overwriting of the data files will make it extremely difficult and costly, if not impossible, to recover the data using standard forensic methods,” the report said.

The document was sent to security staff at some U.S. companies in an email that asked them not to share the information.

The FBI released the document in the wake of last Monday’s unprecedented attack on Sony Pictures Entertainment, which brought corporate email down for a week and crippled other systems as the company prepares to release several highly anticipated films during the crucial holiday film season.

A Sony spokeswoman said the company had “restored a number of important services” and was “working closely with law enforcement officials to investigate the matter.”

The FBI said it is investigating the attack with help from the Department of Homeland Security. Sony has hired FireEye’s Mandiant incident response team to help clean up after the attack, a move that experts say indicates the severity of the breach.

Hackers used malware similar to that described in the FBI report to launch attacks on businesses in highly destructive attacks in South Korea and the Middle East, including one against oil producer Saudi Aramco that knocked out some 30,000 computers. Those attacks are widely believed to have been launched by hackers working on behalf of the governments of North Korea and Iran.

Sony may have been targeted by North Korea for releasing a film called “The Interview”.

The movie, which is due to be released in the United States and Canada on Dec. 25, is a comedy about two journalists recruited by the CIA to assassinate North Korean leader Kim Jong Un. The Pyongyang government denounced the film as “undisguised sponsoring of terrorism, as well as an act of war” in a letter to U.N. Secretary-General Ban Ki-moon in June.

The FBI report said some of the software used by the hackers had been compiled in Korean, but it did not discuss any possible connection to North Korea.

Zombie class action haunts Apple

at-least-mantan-moreland-graces-this-poster-hollywood-horror-history-classic-horror-eras-the-1940-s-b840d71b-c348-43fd-ac1b-cf79e1070d44A ten-year old class action is back from the dead after haunting the fruity cargo cult Apple for more than a decade.

Apple faces an antitrust lawsuit which claims the outfit tried to monopolise online music distribution is headed to trial.

If you believe the Apple iPod iTunes antitrust litigation, Apple violated the US and California antitrust law by restricting music bought on iTunes from being played on devices other than iPods and by not allowing iPods to play music bought on other digital music services.

Another zombie  is going to be dug up for the trial — late Apple founder Steve Jobs will reportedly appear via a videotaped statement during the trial. Our guess is that he will not be able to answer questions, unless lawyers conduct a séance.

The trial will start this morning in the US District Court for the Northern District of California.

Plaintiffs are seeking about $350 million in the case and lawyers for both sides have filed dozens of trial documents over the past decade. The case has a long history. First, the court refused to dismiss it but chucked out some of the original claims in 2005.

In October, Judge Yvonne Gonzalez Rogers scheduled a trial to begin this Tuesday.

The original January 2005 complaint in the case references a music distribution industry that no longer exists nearly a decade later. The document refers to iTunes competitors Napster, Buy.com, Music Rebellion and Audio Lunch Box, along with digital music players from Gateway, Epson, RCA and e.Digital.

Even the opening paragraphs of the complaint talk about defunct CD seller Tower Records.

“It would be egregious and unlawful for a major retailer such as Tower Records, for example, to require that all music CDs purchased by consumers at Tower Records be played only with CD players purchased at Tower Records,” the complaint said. “Yet, this is precisely what Apple has done.”

Lawyers for plaintiff Thomas Slattery wrote that Apple has rigged the hardware and software in its iPod such that the device will not directly play any music files originating from online music stores other than Apple’s iTunes music store.

Apple removed DRM (digital rights management) from iTunes in early 2009, so the lawsuit covers iPods purchased from Apple between September 2006 and March 2009.

 

Cypress in Spansion expansion

Cypress_ContactusCypress Semiconductor has written a $1.59 billion cheque to buy Spansion creating a chipmaker with more than $2 billion in annual revenue.

The big idea is to help make its weakness in the mobile market go away.

Cypress, which makes programmable and memory chips, has fallen for the past two years, while Samsung Electronics contribution to its revenue has increased.

Samsung accounted for about 12 percent of Cypress’s fiscal 2013 revenue of $723 million.

Spansion has seen strong demand from automotive clients for its microcontroller chips, whose uses range from controlling airbag deployment to rolling down windows.

That helped the company, which also makes flash memory-based products, post a rise in revenue in fiscal 2013, halting a string of six straight years of revenue decline.

Spansion shareholders will receive 2.457 Cypress shares for each Spansion share they own, the companies said on Monday, valuing the tax-free deal at about $4 billion.

Shareholders of each company will own half of the combined entity, which will be led by Cypress’ founder and chief executive, T.J. Rodgers.

Cypress said it expects to save more than $135 million per year within three years of the deal closing, which is expected in the first half of 2015.

Spansion was a joint venture set up in 2003 between Fujitsu and AMD. It did not do very well and it filed for bankruptcy in 2009. It emerged from bankruptcy a year later.

 

Apple shares tank

You-Gun-It-When-We-PushWall Street watched in horror yesterday as the value of shares in the industry darling, Apple shares plummeted faster than a free fall parachuting team of elephants which had forgotten to pack the key ingredient of their act.

Apple shares tumbled shortly after the start of trading on Monday, briefly suffering their largest price drop in at least three months on an unusual spike in volume.

More than 6.7 million shares trading in a one-minute stretch, the heaviest minute of trading in Apple since October 29.

The stock lost over three percent in that minute, falling as much as 6.4 percent to $111.27. At midafternoon, it was down three percent to $115.45. The Tame Apple press did its best to insist that the share drop was nothing to do with Apple. They claimed it was all down to algorithmic trading which put Apple on sell.

Reuters was a bit huffy that computers had dared to say its favourite computer company was worth less than it was in the morning. The HFT has been criticised for affecting the trading of stocks by sending in numerous trade quotes that slow quote activity – without filling the trades when shares fall, it wrote.

However, other analysts disagreed. Bill Harts, chief executive officer of Modern Markets Initiative, an advocate of high-speed electronic markets said that determining the cause of the decline was not so simple. “The fact is we don’t yet know what caused the drop, and blaming it on HFT is misleading.”

Morgan Stanley strategists dropped Apple’s weighting in their strategic portfolio to three percent from four percent in an equity outlook note released Monday, but traders said the swiftness of the decline was too dramatic to be attributed solely to the note, which was released before trading opened.

It might have been the Morgan Stanley news that rather stimulated the event, but not enough to cause such a decline, analysts claim.

 

Google Glass saved by Intel

spexIt looks as though Google Glass will have a fresh leash of life after it has emerged Intel is to get involved in the project.

Reports recently suggested that Glass was on its last gasp, with several employees leaving Google to spend more time with their families.

But, according to a report in the Wall Street Journal, Intel is going to take an active role in future development of the spectacles.

Firstly, a Texas Instrument chip will disappear from the frame to be replaced with an Intel device based on its Quark X86 technology.

And Intel, which is now a firm believer in the concept of electronic “wearables”, will do some selling and promotion of Google Glass to manufacturers, the healthcare industry and other vertical sectors, said the Journal.

The report said the next version of Glass will have a better battery life and probably more memory.

Intel has had a chequered career in any products outside its core X86 PC business, and was very late to the game in the mobile and tablet markets.

Intel buys password company

Intel-logoChip giant Intel has bought a Canadian company that attempts to take the pain out of passwords.

Intel Security – which includes the McAfee unit – didn’t say how much it paid for PasswordBox, which only started business in June 2013.

It’s unclear how many of the company’s 44 employees will be employed by Intel.

Intel will give new and existing customers a premium subscription at no cost until it gets round to releasing products under its own branding.

PasswordBox has around 14 million users worldwide.  The software lets you coordinate different logins and passwords in a sort of digital wallet so you don’t have to remember – or write down – all those different passwords that are easy to forget.

Families frightened of social media

facebokTwo thirds of people in the UK won’t share their photographs online because they’re worried about privacy.

That follows widely publicised hacks of different social networking products including Twitter and Facebook.

A survey conducted by Berland on behalf of KatchUp showed that while 82 percent of families believe keeping in touch with each other is most important, the most common way people share photos using email, at 59 percent.

Other worries about sharing photos online include the time taken to filter photographs (49%), a fear of their data being collected by the social media (33%) and a dislike of advertisements (17%).

Two out of five people said they were worried about what the rest of their family could come across on social networking accounts.

As many as 59 percent of British people only want an inner circle of people to see photographs on social media.

And 38 percent and 30 percent of people thought it was “inappropriate” to share christening and photos of children.

Apple to suffer on iPad sales

gala_appleApple sales of the iPad are likely to fall because people buying its products are moving to larger iPhones and those are cannibalising the market.

That’s according to the research unit of Digitimes which estimates that shipments of iPads will fall to about 55 million units in 2015, way down from sales during this year.

Other researchers believe that the iPad market has reached maturity in the so-called developed markets, and people are unlikely to buy a new and expensive tablet when their current iPads are powerful enough for most purposes.

But there’s a silver lining to every cloud and the research outfit believes that a combination of Sony exiting the notebook market and Apple cutting prices will see Macbook shipments growing by 15 percent next year.

Apple is expected to release a 12.9 inch iPad during 2015 and also ship 12.2-inch “Retina” displays but that won’t do very much to stem the decline of its very profitable iPad lines.

Meanwhile, Apple, as we reported elsewhere today, is toying on when to release its iWatch for the best possible selling period.

Indian software market grows again

flaggThe accession to power by the “business friendly” BJP party in India has resulted in the software market starting to grow again.

That’s according to a report by market intelligence firm IDC, which said during the first half of this year, the market grew by 10.7 percent, compared to the first half of 2013.

IDC thinks the market will continue to grow in the next five years with a compound annual growth rate  (CAGR) of 10.5 percent.

Areas of growth include mobile application development and device management, security software, systems software and engineering applications.

Shweta Baidya, a senior market analyst at IDC, said that large and small to medium enterprises want to curb capital expenditure and move into the cloud.

Virtualisation and cloud players like Vmware, Salesforce and Red Hat generated good business, and database and analytics companies including Teradata, Oracle, Qlik and others saw double digit growth.

IDC provided a pie chart which shows market share in the region.

indiapie

Finland gives up on handwriting

Pieter_Claeszoon_-_Still_Life_with_a_Skull_and_a_Writing_QuillThe home of Nokia, Finland has decided to give up teaching handwriting, in favour of typing courses.

The Savon Sanomat newspaper reports that from autumn 2016 cursive handwriting will no longer be a compulsory part of the school curriculum. Instead the schools will teach keyboard skills and “texting”.

Actually, keyboard skills are surprisingly less common than most people think. Most people “pick up” typing and really have no idea what home keys are and some of the other black arts imparted by jack-booted typing teachers in schools. “Touch typing” produces speeds of 126 words per minute.

Some countries already provide an opportunity for students to learn to type properly, many others treat the whole idea as a low-level skill that can simply be “picked up.”

The teachers that the Savon Sanomat newspaper spoke to said that children would benefit from the changes to the curriculum, and that attention would be paid to those kids who may not have access to the same kind of modern-day gadgetry at home as their peers. Minna Harmanen, of Finland’s National Board of Education, said that fluent typing was an important “civic skill” that every child should learn.

Of course this does mean that we will be raising a generation of children who cannot leave a note on the fridge and might not be able to carve their own names in the desks at school.

Studios try internet take over

hollywoodThe movie and nusic studios have taken their first steps towards controlling ISPs who do not do what they are told, and, indirectly the internet,  with court actions.

BMG Rights Management and Round Hill Music have sued Cox Communications for copyright infringement, arguing that the internet service provider does not do enough to punish those who download music illegally.

BMG and Round Hill are clients of Rightscorp, a copyright enforcement agent whose business is based on threatening ISPs with a high-stakes lawsuit if they don’t forward settlement notices to users that Rightscorp believes are “repeat infringers” of copyright.

Saying this is a high-stakes, game is an understatement. The studios are trying to hold an ISP responsible for users engaged in piracy. If it comes off, then ISPs could find themselves responsible for all the content that users post online.

BMG and Round Hill claim that they have notified Cox about 200,000 repeat infringers on its network, which means trillions of dollars.

The music publishers describe the Cox network as an out-of-control den of piracy. “Today, BitTorrent systems are like the old P2P systems on steroids,” BMG lawyers write. “Despite its published policy to the contrary, Cox’s actual policy is to refuse to suspend, terminate, or otherwise penalize subscriber accounts that repeatedly commit copyright infringement through its network in any meaningful numbers.”

Cox has ignored “overwhelming evidence,” and the complaint lists a few examples. A “Cox subscriber account having had IP address 70.168.128.98 at the time of the infringement, believed to be located in Fairfax, Virginia, was used to infringe twenty-four particular copyrighted works 1,586 times since December 9, 2013,” they note. “Cox subscriber having IP address 24.252.149.211 engaged in 39,432 acts of copyright infringement over 189 days.”

Rightscorp is furious that  Cox started treating its e-mails like spam.

Part of the issue here is the Digital Millennium Copyright Act, passed in 1998, which requires ISPs to have a policy to terminate “repeat infringers,” but there’s not a lot of clarity as to exactly what that means.

If a “repeat infringer” has to be defined by a judge rules then the music publishers and Rightscorp have many more hoops to jump through before they have any hope of beating Cox in court. However if Rightscorp’s notifications are enough to find a user is a repeat infringer, then the Interent could be in trouble.

Rightscorp believes, of course that all it has to do is accuse someone of being a witch, er movie pirate, and Cox should dump them as a client.

Big Content has not wanted to pick this particular fight. If they win, they could get more enforcement tools, but if they lose then they would end up with less power over ISPs than they have now.

ISPs are compromising on the issue and slowly moving forward with a “six strikes” system. That would go out the window if ISPs have a legal precedent to tell the studios to get a court order.

There is also the additional problem that if the ISPs, lose it will make it possible for anyone to censor the internet for the price of a stamp. All you need to do is sue the ISP and they will either take down the content or have to go to court to defend it.