Is China Mobile Good For Apple?

The tame Apple Press has enthusiastically been running storied about how well Apple is doing in China. Reuters for example has been saying that the one million pre-orders that Jobs’ Mob has just collected is a triumph for Tim Cook’s negotiating ability. Getting a deal out of China Mobile was something the sainted Steve Jobs could not manage.

However saner heads are urging caution, While it is true that launching its iPhone on China Mobile vast network on Friday, opening the door to the world’s largest carrier’s 763 million subscribers and giving its China sales a short-term jolt, it is not likely to last. For a start the deal could start a war which China Mobile would not want. Some analysts predicting a costly subsidy war as rival carriers compete to lure customers. If China Mobile does not make its targets on sales for these phones, they are going to increase the subsidies.

China Mobile’s iPhone sales are expected to reach 12 million in its 2014 fiscal year, but its subsidies will leap 57 percent to $7 billion. In addition, the prices are still really high for the Chinese market. For the basic 16GB iPhone 5S, with no subscriber contract, China Mobile is charging $870.

China Unicom and China Telecom slashed their iPhone prices by as much as $210 following the announcement that a deal had been struck between Apple and China Mobile. The pair have also offered a range of cut-price deals on contracts. But there are also some problems with the pre-orders. Reuters checks showed that there were multiple registrations using fake ID numbers which means that people are buying up hoping to make a swift buck on resales.

All this is the least of Apple’s Chinese worries. The outfit has fallen out of favour with consumers who are increasingly opting for domestic products. Those who want an iPhone do not need to pay excessively to get one through China mobile either. In China, you can buy handsets typically smuggled from Hong Kong and then sign up for a China Mobile contract. This is a swings and roundabouts for Apple. If people buy from China Mobile, they will not buy from Hong Kong so it will lose sales there. If they don’t then the China Mobile contract is rubbish.

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Is Apple Hiding Billions?

According to Apple’s Q4 corporate filings, the company channeled $11 billion into tax havens in a single quarter. The Sunday Times claims the company is sheltering a total of $94 billion in tax havens. However, Apple’s activities are completely legal and the IRS can’t do anything about it.

But Apple’s tax avoidance strategy is not limited to the US. The company is avoided an estimated £550 million in tax in Britain back in 2011. A different analysis suggests a £550 million tax bill. Let’s not forget Kate Middleton is about to have a baby, and babies tend to cost money, so shame on you Apple.

American politicians, from both sides of the political spectrum, like to have their photos taken next to anything Apple.  The company is often viewed as an American success story, as it managed to reinvent itself and come back from the brink to become the world’s second most valuable company.

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Apple Faces Another Lawsuit

Apple devices using touch technology infringe on a patent owned by the Pennsylvanian company FlatWorld Interactives, the company stated in court documents filed on last Friday. FlatWorld asked for a permanent injunction that Apple stop infringing, and for sufficient compensation for the infringements, the company’s attorneys said.

The Pennsylvanian designer of touchscreen systems for use in museum displays alleged that Apple knowingly infringed on its patent, according to documents filed with the U.S. District Court for the Northern District of California said. The infringing products are said to include the iPhone, iPad, iPod Touch, MacBook Pro, MacBook Air, Magic Mouse and Magic Trackpad.

FlatWorld said Apple’s infringement has been on a massive scale and has caused it irreparable harm. The company demanded a permanent injunction enjoining Apple from continued infringement plus an unspecified amount of damages to compensate for Apple’s infringement. The company is seeking a jury trial.

FlatWorld was founded in January 2007 by Slavko Milekic, a professor in cognitive science and digital design at the University of the Arts in Pennsylvania, in order to commercialize his touch screen patent, the filing said.

Milekic filed a provisional patent application on August 28, 1997, claiming priority from that date in his definitive patent application, according to the court documents. He applied for his patent on June 12, 1998 and was granted it as U.S. patent 6,920,619 on July 19 2005, according to the U.S. Patent and Trademark Office.

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Tool Created To Hack BlackBerry Passwords

A Russian security firm has upgraded a phone-password cracking software with the ability to figure out the master device password for Research in Motion’s BlackBerry devices.

Elcomsoft said on Thursday that before it developed the product, it was believed that there was no way to uncover a device password on a BlackBerry smartphone or PlayBook tablet. BlackBerry smartphones are configured to wipe all data on the phone if a password is typed incorrectly 10 times in a row, the company said.

Elcomsoft said it figured a way around the problem using a BlackBerry’s removable media card, but only if a user has configured their smartphone in a specific way. In order for Elcomsoft’s software to be successful, a user must have enabled the feature to encrypt data on the media card.

The feature is disabled by default, but Elcomsoft said around 30% of BlackBerry users have it enabled for extra security.

The company’s software can then analyze the encrypted media card and use a brute-force method to figure out a password, which involves trying millions of possible password combinations per second until one works.

Elcomsoft said it can recover a seven-character password in less than an hour if the password is all lower-case or all capital letters. The software does not need access to the actual BlackBerry device but just the encrypted media card.

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Apple Outs Patch For Tracking Issue

As Apple promised last week in several discussions regarding its location tracking issues, iOS 4.3.3 addresses three bugs related to the database of location information on iOS devices. Firstly, it reduces the amount of the cached location information to a week’s worth, rather than relying on a size limit, as it previously did.

Secondly, it no longer backs up the cache to your Mac or PC via iTunes upon syncing, so the information isn’t available to anyone with access to your computer. And finally, the cache is now deleted from the device when Location Services are disabled in iOS’s Settings app.

Apple has also announced plans to encrypt the location information on iOS devices itself in the next major update to the operating system, which presumably means it will be incoporated into iOS 5.

The iOS 4.3.3 update applies to the iPhone 4, iPhone 3GS, iPad, iPad 2, third-generation iPod touch, and the fourth-generation iPod touch. Exceptions to this fix though, are the iPhone 3G and the second-generation iPod touch, both of which were supported by the original release of iOS 4 when the location database is believed to have been created but have since been dropped from compatibility. Also missing in action is the CDMA iPhone 4, although some reports have suggested that it didn’t log data in the same way as the GSM model.

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Samsung Sues Apple

In the uber competitive world of mobile device development suing is fast becoming a sport engaged in by all of the titans of technology. Add another lawsuit to the pile as Samsung Electronics hits Apple with lawsuits in three countries alleging infringement of patents on smartphone technologies. Last week Apple sued Samsung for allegedly copying the designs of Apple’s iPad, iPod Touch and iPhone in its Galaxy smartphone and Galaxy Tab tablet PC.

On Thursday, the South Korean electronics maker sued Apple in Seoul alleging five patent infringements, in Tokyo over two alleged infringements and in Manheim, Germany, over three.

“Samsung is responding actively to the legal action taken against us in order to protect our intellectual property and to ensure our continued innovation and growth in the mobile communications business,” the company said in a statement.

According to Samsung, the lawsuits say Apple infringed on patents concerning reducing data transmission errors in WCDMA (Wideband CDMA) mobile networks, tethering mobile phones to PCs so the PC can use the phone’s wireless data connection, and reducing power consumption when transmitting data over HSPA (High Speed Packet Access) networks.

Apple’s lawsuit filed on April 15 in the U.S. says Samsung copied external design features on the iPhone, iPod Touch and iPad. The lawsuit further alleges that Samsung designed application icons for that come close to icons on Apple’s devices.

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