Apple Changes Policy In China

Apple Inc has started the processing of keeping the personal data of some Chinese users on servers in mainland China, marking the first time the tech giant is storing user data on Chinese soil.

The storage of user data in China represents a departure from the policies of some technology companies, notably Google Inc, which has long refused to build data centers in China due to censorship and privacy concerns.

Apple said the move was part of an effort to improve the speed and reliability of its iCloud service, which lets users store pictures, e-mail and other data. Positioning data centers as close to customers as possible means faster service.

The data will be kept on servers provided by China Telecom Corp Ltd, the country’s third-largest wireless carrier, Apple said in a statement.

“Apple takes user security and privacy very seriously,” it said. “We have added China Telecom to our list of data center providers to increase bandwidth and improve performance for our customers in mainland china. All data stored with our providers is encrypted. China Telecom does not have access to the content.”

A source with knowledge of the situation said the encryption keys for Apple’s data on China Telecom servers would be stored offshore and not made available to China Telecom.

Apple has said it has devised encryption systems for services such as iMessage that even Apple itself cannot unlock. But some experts expressed scepticism that Apple would be able to withhold user data in the event of a government request.

“If they’re making out that the data is protected and secure that’s a little disingenuous because if they want to operate a business here, that’d have to comply with demands from the authorities,” said Jeremy Goldkorn, director of Danwei.com, a research firm focused on Chinese media, internet and consumers.

“On the other hand if they don’t store Chinese user data on a Chinese server they’re basically risking a crackdown from the authorities.”

Goldkorn added that data stored in the United States is subject to similar U.S. regulations where the government can use court orders to demand private data.

A spokesman for China Telecom declined to comment.

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Is Snapdragon A Security Flaw?

Security researcher Dan Rosenberg has told a Black Hat conference how it is possible to permanently unlock the bootloader on Android phones – provided they use a Qualcomm Snapdragon chip.

Rosenberg said that the flaw is in ARM’s TrustZone technology, which runs a trusted operating system and another for normal apps. This is supposed to improve device security, but in Qualcomm’s implementation, they cocked it up. It means that if a hacker gets access to the trusted operation part of the chip, it can run whatever application he or she likes.

This affects all known Android devices with a Qualcomm Snapdragon SoC, including the Nexus 5, the HTC One, and Samsung’s Galaxy Note 3, as well as the Moto X. The Samsung Galaxy S5 and the HTC One M8 have already been patched.

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HP Increases SlateBook Pricing

Hewlett-Packard’s SlateBook 14 laptop with Google’s Android OS has started shipping on schedule, but it’s priced at $429, which is $30 more than the company had said it would cost.

The laptop, which has a 14-inch screen and Android 4.3, was announced in June. At the time, HP said it would be priced at $399.

It is available on HP’s website.

The SlateBook 14 was introduced after customers told HP they wanted laptops with Android. The laptop has an interface similar to that on Android tablets and can adjust mobile apps to run on the larger touchscreen. Users will also be able to sync laptop data with mobile devices and vice versa.

The laptop is also for those who rely on the Web for most of their computing, much like Chromebooks. It has a few advantages over Chromebooks, with support for key Android apps such as Skype. Android also boasts better wireless printing support than Chromebooks.

The laptop weighs 1.68 kilograms and offers nine hours of battery life, according to specifications on HP’s website.

It has a quad-core Tegra 4 processor, 2GB of DRAM and 16GB of storage. Connectivity features include 802.11b/g/n Wi-Fi and Bluetooth 4.0. It also has a webcam, USB 3.0 port and a micro-SD slot for expandable storage.

It could be a strong multimedia laptop with a 1920 x 1080 pixel screen and an integrated graphics processor that can handle 4K video. TVs can be connected to the laptop through an HDMI port.

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Dell Goes Bitcoin

Want to purchase a laptop with bitcoins? Dell is now accepting the digital currency as a form of payment.

Consumer and business shoppers can pay for products directly via bitcoins or through Coinbase, a third-party payment processing company, Dell said.

Buyers can pay for products through Bitcoin wallets or by scanning a QR code with a smartphone.

The volatile Bitcoin has had its share of controversies and exchange shutdowns as the currency matures. Companies like Overstock.com, Newegg, Expedia and some Amazon storefronts accept Bitcoin as a form of payment. But major retailers like Walmart and eBay have not warmed up to the idea. The value of one bitcoin was around $630 as of Friday, according to multiple cryptocurrency website.

There are some advantages to paying via Bitcoin. The form of currency is accepted around the world, and for Dell, the payment-processing cost is less than with credit cards.

But the form of payment has its quirks.

“Due to the nature of the Bitcoin network, once you initiate a Bitcoin transaction you cannot change or cancel it,” Dell said on a terms and conditions page.

Customers could seek refunds in the case of canceled transactions or product returns.

“For a qualifying return of product paid for in Bitcoin, any refund due will be remitted to the purchaser via check in U.S. Dollars for the full amount of the purchase price paid at the time of the original transaction, less any applicable restocking fees,” Dell said.

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Will Google Grow From Mobile?

Google Inc  is the more properly positioned than any company to benefit from the shift to mobile, increased local advertising and wearables, analysts said after the search giant posted its 18th straight quarter of 20 percent-plus revenue growth.

At least eight brokerages raised their price targets on the stock on Friday by as much as $75, to a high of $745.

The company, which is also set to benefit from the so-called “internet of things”, said that second-quarter revenue rose 22 percent to $15.96 billion, beating the average analyst estimate of $15.61 billion.

Growth was driven by the company’s core search business, YouTube and product-listing ads, which combined to drive three times as much mobile traffic for merchants compared with last year, Jefferies analysts wrote in a note.

Brokerage Jefferies maintained its “buy” rating and $700 price target on the stock.

Of the 46 analysts covering Google, 36 have a “buy” or a higher rating on the stock and 10 have a “hold”. There are no “sell” ratings, according to StarMine data.

Google earns most of its revenue from advertising.

The number of “paid clicks” by consumers on ads serviced by Google increased 25 percent year-on-year in the quarter.

However, the average price of the ads declined 6 percent as ad rates on mobile phones are typically cheaper than traditional online ads because of their smaller screens.

“Google is successfully transitioning its business from PC to mobile, and is arguably in a more favorable position in mobile than it was in PC, which should eventually be reflected in a higher multiple,” Deutsche Bank analyst Ross Sandler wrote in a client note.

Google also owns Android, the world’s most-used mobile software, and YouTube, the most popular video-streaming service.

Other online companies such as Facebook Inc and Twitter Inc  are also revamping their advertising businesses to take advantage of the shift to mobile devices.

But Google has established unusually deep competitive “moats” around its business through scale, aggressive product innovation and substantial investment, RBC Capital Markets analysts wrote in a research note.

Google’s capital investment budget has topped $17 billion over the past five years, and the company has spent about $13 billion on research, according to analysts.

The company is also spending big to push into new markets with innovations such as wearable computers, ultra high-speed internet access and home automation – the “internet of things.”

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Insurers Eyeing Cyber Coverage

Insurers are eagerly monitoring exponential growth in the tiny cyber coverage market but their lack of experience and skills handling hackers and data breaches may keep their ambitions in check.

High profile cases of hackers seizing sensitive customer data from companies, such as U.S. retailer Target Corp or e-commerce company eBay Inc, have executives checking their insurance policies.

Increasingly, corporate risk managers are seeing insurance against cyber crime as necessary budget spending rather than just nice to have.

The insurance broking arm of Marsh & McLennan Companies estimates the U.S cyber insurance market was worth $1 billion last year in gross written premiums and could reach as much as $2 billion this year. The European market is currently a fraction of that, at around $150 million, but is growing by 50 to 100 percent annually, according to Marsh.

Those numbers represent a sliver of the overall insurance market, which is growing at a far more sluggish rate. Premiums are set to grow only 2.8 percent this year in inflation-adjusted terms, according to Munich Re, the world’s biggest reinsurer.

The European cyber coverage market could get a big boost from draft EU data protection rules in the works that would force companies to disclose breaches of customer data to them.

“Companies have become aware that the risk of being hacked is unavoidable,” said Andreas Schlayer, responsible for cyber risk insurance at Munich Re. “People are now more aware that hackers can attack and do great damage to central infrastructure, for example in the energy sector.”

Insurers, which have more experience handling risks like hurricanes and fires, are now rushing to gain expertise in cyber technology.

“It is a difficult risk to price by traditional insurance methods as there currently is not statistically significant actuarial data available,” said Robert Parisi, head of cyber products at insurance brokers Marsh.

Andrew Braunbergon, research director at U.S. cybersecurity advisory company NSS Labs, said that some energy companies have trouble persuading insurers to provide them with cyber coverage as the industry is vulnerable to hacking attacks that could trigger disasters like an explosion in a worst-case scenario.

Pricing on policies for retailers has climbed in the wake of recent high-profile breaches at Target, Neiman Marcus, and other merchants, he added.

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NSA Software Reengineered

Hackers have found a way to reverse engineer the technology of the United States National Security Agency (NSA) spy gadgets.

Thanks to documents leaked by fugitive former NSA contractor and whistleblower Edward Snowden, the group has built a copycat device able to gather private data from computer systems.

The Advanced Network Technology catalogue, leaked by Snowden, is the Argos book of the NSA showing a range of toys available to agents. One such device known has a “retro reflector” had eluded identification, beyond that it acted as a bug, keylogger and screengrabber.

Michael Ossman and his team from Great Scott Gadgets, a Colorado based hacking group, decided that the best defence against such devices was to create their own to understand what makes them tick.

It transpired that the key technology being used is called software defined radio (SDR), an approach that uses software to generate radio transmissions through signal processing, doing away with a lot of hardware circuitry.

“SDR lets you engineer a radio system of any type you like really quickly so you can research wireless security in any radio format,” Ossmann told New Scientist.

The technique can be used for almost any type of radio signal and therefore the devices are capable of tracking anything, from what you’re listening to through a Bluetooth headset to the binary signals of your internet traffic.

The group, which will demonstrate its work at the Defon hacking conference in Las Vegas, runs a website at NSAplayset.org that is a repository for all of the information it gathered.

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Oracle Takes A Fall

Oracle posted fiscal fourth-quarter results that were just horrible for investors looking for more progress in web-based services, sending its shares lower.

The company had been expected to report a pickup in its software business and progress in cloud computing, shares of Oracle had gained 10 percent over the past three months. However yesterday it was clear that Oracle is getting a kicking from the competition like Salesforce.com and Workday which have been offering competitive software and Internet-based products at prices that often undercut Oracle.

Tech spending is likely to fall as more companies move to the cloud. Oracle has been rolling out its own cloud-based products but they remain under five percent of its overall revenue. For the fiscal first quarter, Oracle expects software and cloud revenue to grow between 6 percent and 8 percent. That forecast includes expectations for software- and platform-related cloud services to grow between 25 percent and 35 percent.

Oracle said it expects its hardware system revenue to be in a range of down 1 percent to up 3 percent.

For its latest fourth quarter, Oracle said overall revenue rose 3 percent to $11.3 billion. That was less than the $11.48 billion analysts had expected on average. Net income fell 4 percent to $3.6 billion.

Revenue from Oracle’s hardware systems products grew 2 percent to $870 million.

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BlackBerry And Amazon Team Up

BlackBerry Ltd has agreed to a licensing deal with Amazon.com Inc that will let the Canadian smartphone maker offer some 240,000 Android applications from Amazon’s app store on its lineup of BlackBerry 10 devices this fall.

The move allows the Waterloo, Ontario-based company to add a vast array of consumer-focused apps to its devices, while at the same time directing its own efforts toward developing enterprise and productivity applications.

Customers who own smartphones powered by its BlackBerry 10 operating system will now be able to access popular Android apps such as Groupon, Netflix, Pinterest, Minecraft and Candy Crush Saga on their BlackBerry devices this fall. Google Inc makes Android, the mobile operating system used in more than a billion phones and tablets.

The apps will become available after the Canadian smartphone maker rolls out the upgraded BlackBerry 10.3 operating system, the company said.

The move is the latest by the smartphone pioneer to streamline its focus as it attempts to reinvent itself under new Chief Executive Officer John Chen as BlackBerry phones have lost ground to Apple Inc’s iPhone and Samsung Electronics Co Ltd’s Galaxy devices.

Analysts saw the move as a step in the right direction, but are not sure whether it will help turn the tide for BlackBerry.

“While this will widen the BB10 app ecosystem, the consumer

smartphone environment still remains challenging,” Wells Fargo analyst Maynard Um said in a note to clients.

Um views the announcement as a positive for BlackBerry, but said “whether it stems consumer churn remains to be seen.”

Chen wants to remain a competitor in the smartphone segment, but is focused on making BlackBerry a dominant force in machine-to-machine communications. The company’s QNX software already is a mainstay in the automotive industry, powering electronic and other systems in a wide range of cars.

BlackBerry already works with hundreds of large enterprise clients, including corporations and government agencies, to manage and secure mobile devices on their internal networks.

Chen intends to build on those ties and BlackBerry’s security credentials to let these enterprise clients build and customize in-house corporate and productivity applications for their employees.

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Is Apple Now Copying Google

PC Advisor has been going through Apple’s latest iOS 8 operating system and is finding features which appear to be a direct lift from Google. Of course it has to say that Apple is being brilliant and original about stealing the ideas. After it points out that Apple did not invent the music player but it did steal it better than anyone else.

The top 5 iOS 8 features Apple stole from Android include:

Typing suggestions: Start typing and suggested words will appear letter by letter. Hit the correct word and you save the time it would have taken to type the while word and it is a pretty intelligent selection process.

Okay Google: Hotword detection is also the basis of the Google Now Launcher that shipped with the Nexus 5. As long as your phone is awake, saying ‘Okay Google’ wakes up the voice assistant. In iOS 8 Apple has added something similar in the guise of ‘Hey Siri’, the ability to immediately engage Siri simply via a voice command.

Third-party keyboards: Google has long given Android users the opportunity to explore the world outside its own platform. Apple is allowing the same thing on its system now.

Widgets: Widgets have always been part of Android and Apple finally is letting it happen. Of course Apple is not entirely prepared to let you have full control of your device’s desktop. iOS 8 widgets are small app extensions that take up a spot in the Notification Center. Not as good as Android but better than a poke in the eye with a short stick.

Useful notifications: Android has long allowed developers to add up to two action buttons to a notification. So when the message pops up telling you that you have a message you can reply right from the notification, the relevant app opening as required. Now Apple can do that.

While it is accepted that ideas are copied, at least until one of the sides turns into a Patent Troll, what is strange about Apple is that it markets itself as the innovation hub that others follow. It appears that if this was ever true it is not the case now.

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