Lenovo Soars

PC sales in China and high growth in smartphones sales helped boost Lenovo’s net profit for its fiscal fourth quarter by 90% year-over-year.

For the quarter ended March 31, Lenovo’s net profit was $127 million, the company said on Thursday. Revenue shattered records and was at $7.8 billion, growing 4% from the same period last year.

In Lenovo’s home market of China, the company had an operating margin of 4.9%, an increase of 8% year-over-year. The company also saw continued profitability in its mobile devices business, which makes up 9% of its overall sales. At the end of the quarter, Lenovo’s smartphone shipments were up 206% year-over-year.

Globally, PC shipments were down 13.9% year-over-year in the quarter, the market’s steepest decline since research firm IDC began tracking the market in 1994. Lenovo itself posted flat year-over-year PC shipment growth in the period.

Smartphone and tablet popularity have hurt PC sales, according to analysts. Computers running Microsoft’s Windows 8 have also failed to drum up consumer interest in the previous two quarters.

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Lenovo, however, has managed to weather the slowdown by taking advantage of the Chinese PC market, where it has an over 30% market share. Close to half of the company’s revenue comes from the country, now the world’s largest PC market.

The company is now close to surpassing leading PC vendor HP for the top spot. The company had a 15.3% share of the market in this year’s first quarter, while HP had a 15.7% share.

But the Chinese PC maker also plans to focus more of its investment on tablets, smartphones and enterprise hardware, the company’s CEO Yang Yuanqing said in a statement. Earlier this year, Lenovo also reorganized its operations to sharpen the company’s branding and compete better in high-end products.

For the current fiscal year, Lenovo aims to ship 50 million smartphones, up from 30 million last year, Yang said Thursday in an earnings call. It aims to ship 10 million tablets, a five-fold increase from the previous fiscal year.

Most of Lenovo’s smartphone sales come from China, but the company has also begun selling handsets in the emerging markets of Russia, India, Indonesia, the Philippines and Vietnam. In addition, Lenovo is preparing to bring its smartphones to the U.S. and European markets, Yang said, without saying when.

Adobe Reader Security Issue Found

McAfee has discovered a vulnerability in Adobe’s Reader program that allows people to track the usage of a PDF file.

“Recently, we detected some unusual PDF samples,” McAfee’s Haifei Li said in a blog post. “After some investigation, we successfully identified that the samples are exploiting an unpatched security issue in every version of Adobe Reader.”

The affected versions of Adobe Reader also include the latest “sandboxed” Reader XI (11.0.2).

McAfee said that the issue is not a “serious problem” because it doesn’t enable code execution, however it does permit the sender to see when and where a PDF file has been opened.

This vulnerability could only be dangerous if hackers exploited it to collect sensitive information such as IP address, internet service provider (ISP), or even the victim’s computing routine to eventually launch an advanced persistent threat (APT).

McAfee said that it is unsure who is exploiting this issue or why, but have found the PDFs to be delivered by an “email tracking service” provider.

The vulnerability works when a specific PDF JavaScript API is called with the first parameter having a UNC-located resource.

“Adobe Reader will access that UNC resource. However, this action is normally blocked and creates a warning dialog,” Li said. “The danger is that if the second parameter is provided with a special value, it changes the API’s behavior. In this situation, if the UNC resource exists, we see the warning dialog.

“However, if the UNC resource does not exist, the warning dialog will not appear even though the TCP traffic has already gone.”

McAfee said that it has reported the issue to Adobe and is waiting for their confirmation and a future patch. Adobe wasn’t immediately available for comment at the time of writing.

“In addition, our analysis suggests that more information could be collected by calling various PDF Javascript APIs. For example, the document’s location on the system could be obtained by calling the Javascript “this.path” value,” Li added.

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Qualcomm Sticks With Windows RT

Tim McDonough, Vice President, Marketing at Qualcomm, was Qualcomm´s commitment to Windows RT. Ever since Microsoft announced Windows RT, ARM supporters had high hopes and Windows RT has yet to live up to some.

Tim confirmed Qualcomm´s commitment to Windows RT and future releases, saying “we are here for the long run”. He describes the partnership as the beginning of a long journey and of course Qualcomm is going to continue rolling out chips that will run great with Windows RT.

Qualcomm mentioned that Samsung ATIV and Dell XPS 10, both of which use Qualcomm’s S4 dual-core APQ8060A chips, run really nice. Tim told us that he is a real fan of both devices and that he is currently using one of them.

We also learned that Snapdragon 600, the one used in the HTC One and some versions of Samsung’s Galaxy S4, is 40 per cent faster than the S4 Pro, adding that Adreno 320 graphics core is significantly faster than the Adreno 225 used in the S4 APQ8060A chip. Another number we got is that the Adreno 330 is up to four times faster than the 225, which is a huge leap forward. Let’s not forget that Snapdragon 800, which is up to 75 per cent faster than Snapdragon S4 Pro, is also coming in mid-year, second half of 2013. The 800 will be Qualcomm’s first chip with Adreno 330 graphics.

One can easily conclude that there should be some Snapdragon 600 and 800 Windows RT convertible tablets at some point in the future. To stay on the safe side, Qualcomm just confirmed that new and exciting things are coming in the next months and quarter and they are Windows based.

We have to notice that most people in the tablet world get really excited talking about convertible tablets in all shapes and sizes, as the physical keyboard is definitely an accessory you want to have.

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Citrix Goes To The Cloud

Citrix System’s GoToWebcast has become generally available in North America and Europe, offering users a cloud-based webcasting tool for up to 5,000 participants.

The subscription-based GoToWebcast allows users to broadcast unlimited audio and video presentations to live and on-demand audiences that can access them using mobile devices such as Apple’s iPhones and iPads, or Android-based smartphones and tablets.

To simplify administration, GoToWebcast has a five-step wizard that walks users through setting up their event. Users are first asked to schedule the event, including deciding audience size and if the web cast should be available on-demand or live with an archive. Users are then asked to select registration alternatives, multimedia options, choose what content to upload and finally decide on security and email settings.

In addition to audio and video, users can upload presentation documents, chat with attendees, conduct polls and link to social media channels. Citrix didn’t announce any pricing for the new service, only saying that users pay a fixed monthly fee.

The company also released a beta version of GoToWebinar with HDFaces for the 500- and 1,000-attendee plans. HDFaces is a video conferencing technology that lets up to six presenters lead interactive Q&A sessions, host panel discussions, or do demonstrations in high-definition.

The announcement comes after the recently announced availability of HDFaces for up to 100 participants in GoToWebinar and GoToTraining sessions, as Citrix adds high-definition video across its GoTo portfolio.

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openSUSE Lacks Resources For ARM

Opensuse said that its ARM development is being limited by a lack of resources to build software despite having launched its Open Build Service (OBS).

Last month the Opensuse project announced the release of Opensuse 12.3, which brought ARM support to the same level as x86 and AMD64. While the project is working on bringing ARMv7 and more importantly ARMv8 support to its Linux distribution, Jos Poortvliet, community manager at Opensuse, said that the project’s ARM development has been limited by the lack of build resources.

Opensuse announced a collaboration with Samsung to create the OBS, which it was hoped would speed up the development life-cycle. However Poortvliet said, “ARM development is limited by available build resources required for compiling each iteration of new software and while the OBS helps by bringing a lot of build power in one place, the use of QEMU meant that build resources were shared with native x86_64 builds, which turned out to be a performance limitation.

“With fast and dedicated ARM hardware we can reserve build power for ARM builds and make use of the more efficient KVM virtualization.”

However in better news, Poortvliet said that the project had managed to deploy KVM – the Linux kernel based virtual machine – on ARM hardware. He added that parent firm Suse has assigned more resources to building ARM software on OBS and forecast that all packages would be built in two weeks.

While Canonical and Red Hat have been vocal about their ARM developments, Suse and its Opensuse project have been quietly going about their business, though given Poortvliet’s comments regarding a lack of resources, perhaps they have been going about it too quietly.

Although ARM vendors are not expected to converge on the server market until next year, even ARM thinks that most servers using its chips will run open source software.

Unless Suse manages to get its act together, it might find that Canonical and Red Hat have already carved out a significant chunk of the market.

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Microsoft Looks Into Smart Watches

Microsoft is developing designs for a touch-enabled smart watch, joining a number of other large competitors like Samsung Electronics and Apple who are said to be working on similar devices, according to a recent report.

Executives at suppliers to Microsoft told The Wall Street Journal that the company was sourcing components for the prototype of what could potentially be a “watch-style device.”

Microsoft has, for example, requested 1.5-inch displays from component makers for the prototype, an executive at a component supplier told the newspaper. It is unclear whether the company will decide to go ahead with the watch, the newspaper added.

Microsoft could not be immediately reached for comment.

A large number of vendors are looking at new product categories beyond smartphones and tablets.

This isn’t the first time, however, that Microsoft may be looking at watches as a product. It launched a smart wrist watch around a concept called Smart Personal Object Technology it unveiled in 2002, but withdrew it after a lackluster performance.

The Redmond, Wash., company is seeing its key PC market under threat from smartphones and tablets, and the failure of its new Windows 8 operating system to boost sales significantly. IDC said last week that first quarter PC shipments totaled 76.3 million units, down 13.9% compared to the same quarter last year. (The decline was worse than the 7.7% previously forecast by the analyst firm, and the market could be headed into further contraction, the research firm added.

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Windows RT Devices To Drop In Price

Prices of Windows RT devices have started to decline, signaling an attempt by PC makers to quickly clear out stock after poor adoption of tablets and convertibles with the operating system.

Microsoft released Windows RT for ARM-based devices and Windows 8 for Intel-based devices in October last year. The price drop is an acknowledgement that Windows RT has failed, analysts said.

Prices of popular products usually don’t fall, but Windows RT devices were not in demand, and prices fell, analysts said.

The starting price for Dell’s XPS 10 is now US$449 for a 32GB model, scalping $50 off the original launch price. The 64GB model is $499, which is a drop from the original $599 price. By comparison, the price of the Latitude 10 tablet with Intel processors and Microsoft’s Windows 8 OS remained stable at $499.

Asus’ VivoTab RT, which is largely sold through retailers, is being offered by Amazon.com for $382 with 32GB of storage, which is a heavy discount from the $599 launch price. Retailers like Best Buy, Staples and Office Depot have also dropped the price of the tablet by $50, now selling it for $549.

Newegg is listing VivoTab RT as having been discontinued. Asus did not respond to a request to comment on whether the company was still offering the tablet.

Lenovo is offering the IdeaPad Yoga 11 for $599 as part of a seven-day deal, which is a drop from the original $799 price. However, TigerDirect is offering an IdeaPad Yoga 11 model for $599 on its website, while Amazon is selling a model for $499.99.

Samsung did not ship its Windows RT tablet, Ativ Tab, to the U.S. market.

However, the starting price of Microsoft’s Surface RT remained consistent at $499 on its online store. Microsoft also offers Lenovo’s IdeaPad Yoga 11 through its store, but has stopped offering tablets like the VivoTab RT on its website. The company last month said it stocks its store with RT devices based on availability and demand.

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Blackberry Plans New Tablet

BlackBerry plans to roll out a larger tablet and two phone-tablet combos, or phablets, over the next year, according to a leaked road map presentation slide.

The three devices will run the BlackBerry 10 mobile operating system, which powers the Z10 smartphone and the upcoming Q10, which features a physical qwerty keyboard, according to the slide, which first appeared over the weekend on Twitter as @BB10Leaks.

BlackBerry officials didn’t comment on the road map. However, in comments to analysts last Thursday, CEO Thorstein Heins said repeatedly that the company will introduce more BlackBerry 10 devices this year, though he didn’t indicate what form factors the products would feature.

The three new devices shown in the slide include a BlackBerry 10 tablet with a widescreen aspect ratio, as well as a “U10″ phone-tablet, which some call a phablet, and an “R10″ phablet with a physical qwerty keyboard.

The slide indicates that the B10 tablet will ship in the third or fourth quarter, while the two phablets will be released later, with the U10 shipping at the end of the year and the R10 in spring of 2014.

There are no specifications on the slide, but the devices appear to be shown roughly in proportion to one another, with the phablets appearing to be wider than the existing Z10 and Q10 smartphones.

BlackBerry already has a 7-in. tablet called the PlayBook that is more square in shape than the widescreen look of the B10 in the slide. Some analysts and bloggers said it’s possible that BlackBerry is developing a competitor to the various 9-to-11-in. tablets already on the market, including many Android tablets, as well as the 9.7-in. iPad.

“BlackBerry wants to be a full-line competitor, particularly for business users, so they have to have a full line of products to compete head-on with Apple and Android, primarily Samsung,” said Jack Gold, an analyst at J.Gold Associates. “I would expect any viable competitor to establish a full line of products touching on all the various preferences of the marketplace, which includes smartphones, phablets and tablets.”

Gold couldn’t confirm whether any of the details in the leaked slide were accurate, but he noted that it doesn’t appear to include the mid-priced smartphones that Heins and other executives have hinted that BlackBerry may launch over the next few quarters.

The PlayBook tablet first went on sale in April 2011, running on what BlackBerry then called the BlackBerry Tablet OS, based on QNX. BlackBerry later said it would merge that tablet operating system into BlackBerry 10. The company also released a major update to the PlayBook tablet operating system in February 2012.

The first release of the PlayBook was criticized for not having native email.

Analysts are not sure that BlackBerry can keep up with production demand for so many new devices that depend on a relatively constrained supply chain for displays and other components. But to boost its global smartphone market share, currently at less than 10%, BlackBerry will need a product lineup with a variety of options.

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Lenovo To Buy NEC’s Mobile Phone Unit

Japan’s NEC Corp is in negotiations to sell its struggling mobile phone unit to its PC venture partner Lenovo Group Ltd, a source familiar with the discussions said, confirming media reports of the negotiations.

NEC is also in talks with potential domestic buyers, the source said on condition that he wasn’t identified.

NEC has until now said its mobile business is an important part of its overall operations. But after two years of losses the company is shedding assets to bolster profitability.

“Amid the rapidly changing market we are considering a number of ways to bolster the competitiveness of our mobile phone business, but nothing has been decided,” NEC said in a statement through the Tokyo Stock Exchange on Friday in response to the media reports.

Lenovo officials could not be immediately reached for comment.

Japanese phone makers have struggled to gain traction overseas inmarkets dominated by Samsung Electronics Co Ltd and Apple Inc where they are also being challenged by upcoming Chinese makers. In Japan, the two foreign giants are whittling down their share of cell phone sales.

Last October, NEC cut its mobile phone sales target for the year ending March to 4.3 million from a previous estimate of 5 million units. Lenovo, the world’s No.2 maker of PCs, is cranking up overseas expansion in smartphones after solid growth in China.

Japan’s biggest cell phone maker, Sony Corp, is vying with China’s Huawei Technology Co and ZTE Corp to be No.3 in the global smartphone market.

NEC also plans to sell its mobile services subsidiary NEC Mobiling Ltd for as much as $850 million, separate sources told Reuters this month.

Marubeni Corp’s telecommunications unit and TD Mobile, a joint venture between Toyota Tsusho Corp and Denso Corp, are vying for the 51 percent stake, the sources said.

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Is Ubuntu Linux Spyware?

Richard Stallman has asked a South American free software association not to promote Ubuntu Linux at its events because it “spies on its users” by collecting its users’ desktop search activity and selling the data to Amazon.

Canonical released Ubuntu 12.10 last October with Amazon search integrated into its Dash desktop search function.

Although Ubuntu users can opt out and Canonical claims it anonymises users’ search information before sending it to Amazon, the change resulted in Ubuntu users being shown Amazon ads in response to desktop search queries.

The ‘feature’ has attracted a lot of criticism and might have led some users to defect to other Linux distributions.

When Stallman’s request was denied by the FLISOL event organiser with the excuse that it would limit user freedom of choice, Stallman fired off a response to the organisation’s entire mailing list on Sunday. Parts of his email are quoted below, as translated by Groklaw.

“The issue I raise is about what should happen at FLISOL events. Give away copies of Ubuntu or not? Promote Ubuntu or no? I asked the organisers of the event that they, as a policy, not distribute or promote Ubuntu.

“Freedom of users is something else, and there isn’t a conflict between a user’s freedom and my request. If someone decides to install Ubuntu, I would consider it a mistake, but it’s his own choice to do it. What I ask is that you don’t participate, help or suggest that he do it. I didn’t request that you block him from doing so.

“As a matter of principle, I don’t believe anyone has a right, morally, to distribute proprietary software, that is, software that deprives the users of freedom. When the user controls his own software, he can install what he wants and no one can stop him. But today’s issue isn’t about him, what he does, but rather what you do with him.”

As Stallman sent his email only yesterday, it’s not yet known whether FLISOL has reconsidered promoting Ubuntu at its free software events.

These points might seem like splitting hairs, but apparently Richard Stallman – the author of the GNU General Public Licence (GPL), as well as the founder and president of the Free Software Foundation – is serious about them.

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