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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AMD Changes Kaveri

Since AMD officially launched its 4th generation A-Series Kaveri APUs and lifted the NDA veil from all press materials, we noticed that it has started to use a new term to define the structure of its new Kaveri APUs. As we reported last week, AMD is now talking about Compute Cores, which practically puts CPU and GPU cores on an equal footing, suggesting that there should not be any difference between them and that some tasks, previously limited to the CPU, can be done by the GPU as well.

If you take a look at the official AMD slide below which details the three new Kaveri APUs, the A10-7850K, A10-7700K and the A8-7600, you will notice that AMD lists the flagship as the APU with 12 Compute Cores or simply four CPU and eight GPU cores. Since the Kaveri APU is actually the first APU with HSA (Heterogeneous System Architecture) support, with hUMA, or equal memory access by both CPU and the GPU, heterogeneous queuing, which allows the GPU and CPU to have equal flexibility to create/dispatch work and an ability to talk about APU GFLOPS, or combined compute power of the entire APU, it makes sense for AMD to also talk about Compute Cores.

Of course, there are still some application specific tasks where the CPU or the GPU are much better, but, according to AMD, Kaveri is the first true APU, where the GPU is not just for gaming, it can actually do much more.

AMD Senior Manager Sasa Marinkovic, Technology lead for the Client Business Unit, said: “At AMD, we recognize that our customers often think of processors (CPUs) and graphics cards (GPUs) in terms of the number of cores that each product has. We have established a definition of the term “Compute Core” so that we are taking a consistent and transparent approach to describing the number of cores in our HSA-enabled APUs. A Compute Core can be either a CPU core or GPU core i.e. Kaveri can have up to 12 Compute Cores (4 CPU and 8 GPU).”

Although it does sound like a marketing gimmick, but actually is not due to HSA, it will definitely mark a new way for AMD to market/sell its APUs and it will definitely simplify the shopping experience for many casual buyers, more Compute Cores, more performance.

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ZTE Attempts To Double Marketshare

China’s ZTE Corp, the world’s seventh-largest smartphone maker, wants to nearly double its U.S. market share in the next three years by increasing spending on marketing.

ZTE, which trails nearby rival Huawei Technologies Co Ltd in selling both smartphones and telecoms equipment, wants more share of the fat profit margins promised by sales of high-end phones in the United States.

But the company needs to first work on its image. Its mainstay telecom equipment business was essentially shut out of the U.S. and other markets after government officials flagged security concerns about Chinese-made equipment.

ZTE targets a U.S. market share of 10 percent by 2017 from 6 percent in 2013, Lv Qianhao, global marketing director of mobile devices, told Reuters at a company event on Thursday.

That would place it a distant third behind Apple Inc with 41 percent and Samsung Electronics Co Ltd with 26 percent, according to September-November data from researcher comScore.

To that end, ZTE will increase its U.S. marketing budget by at least 120 percent this year from last, Lv said without elaborating. Like other Chinese handset makers, ZTE is grappling with low brand awareness in the world’s second-largest smartphone market and perceptions of inferior quality.

Samsung Electronics, which earns around two-thirds of its operating profit from its mobile division, spent $597 million on marketing in the United States in 2012, according to researcher AdAge.

Last year, ZTE signed a deal with the Houston Rockets basketball team and released a Rockets-branded phone.

“We want young U.S. consumers to participate in our marketing activities, so we will have more NBA (National Basketball Association) stores and channels that sell our products,” Lv said.

Globally, ZTE aims to ship around 60 million smartphones this year compared with about 40 million smartphones last year, said Senior Vice President Zhang Renjun.

The company sees much of that growth in developed markets – including Russia and China- which accounted for 68 percent of mobile device revenue last year compared with 35 percent in 2007, said Lv.

ZTE’s mobile device business sells feature phones as well as smartphones. It was the fifth-biggest mobile phone vendor in July-September, according to researcher Gartner, though it fell out of the top five smartphone sellers list in the same period.

ZTE expects to have swung to a profit for last year having booked its first-ever loss as a public company in 2012.

It based its turnaround on cutting costs, signing fewer low-margin contracts, and winning contracts to build fourth generation telecommunication networks.

The company expects global investment in 4G to reach $100 billion this year, Zhang said.

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OpenSuse Hacked

The openSUSE Forums were hijacked today by a Pakistani hacker who goes by handle H4x0r HuSsY. Apparently the hacker exploited the vulnerability in vBulletin 4.2.1 software which SUSE uses to host the forum. The problem is that the hack revealed that the openSUSE Forums were based on proprietary forum software.

The openSUSE team has denied that the users’ passwords were compromised by the hack.

“The credentials for your openSUSE login are not saved in our application databases as we use a single-sign-on system (Access Manager from NetIQ) for all our services. This is a completely separate system and it has not been compromised by this crack,” the team said.

What the cracker reported as compromised passwords where indeed random automatically set strings that are in no way connected to your the passwords.

While it was good that none of the user data was compromised open sourcers are scratching their collective heads and wondering if the attack would have happened if the outfit had been eating its own dogfood and used some nice open source technologies.

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Yahoo Spreading Malware?

Some advertisements on Yahoo Inc’s European websites last week spread malicious software, Yahoo said on Sunday, potentially infecting the computers of thousands of users.

Last Friday, Fox-IT, a Delft, Netherlands-based computer security firm, wrote in a blog that attackers had inserted malicious ads served by ads.yahoo.com.

In a recently released statement, a Yahoo spokesman, said: “On Friday, January 3 on our European sites, we served some advertisements that did not meet our editorial guidelines, specifically they spread malware.” Yahoo said it promptly removed the bad ads, and that users of Mac computers and mobile devices were not affected.

Malware is software used to disrupt a computer’s operations, gather sensitive information, or gain access to private computer systems.

Fox-IT estimated that on Friday, the malware was being delivered to approximately 300,000 users per hour, leading to about 27,000 infections per hour. The countries with the most affected users were Romania, Britain, and France.

“It is unclear which specific group is behind this attack, but the attackers are clearly financially motivated and seem to offer services to other actors,” Fox-IT wrote in the January 3 blog post.

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Mozilla Delays Touch Browser

Mozilla has again delayed the release date for a touch-enabled version of Firefox that will run in Windows 8′s “Modern” user interface (UI), with the new target in mid-March.

Ship estimates for the browser have been fluid, to put it mildly. In August, the open-source developer pegged December 2013 as the target for the “Metro-ized” version of Firefox. In September, Mozilla said it was hoping to bundle Firefox Metro with the Windows edition of Firefox 27, slated for release on Feb. 4.

Metro was the name Microsoft once applied to the radical UI of Windows 8, but the company ditched the moniker in 2012 over a trademark dispute with a German retailer.

The newest information from Mozilla, however, has tapped March 18, when Firefox 28 is to ship, as the projected release of the browser.

Although a preview of Firefox Metro was bundled with the Aurora build of Firefox more than three months ago — and is currently in Aurora for Firefox 28 — it has not yet been promoted to the next channel, Beta, which is the precursor to Release. Mozilla has set a Jan. 31 deadline for deciding whether the touch browser is ready to add to Firefox 28 Beta.

Mozilla started work on a Metro edition of Firefox in March 2012. It shipped a rough preview in October 2012, several weeks before Microsoft launched Windows 8. At that time, Mozilla’s schedule said the Firefox app might appear as early as January 2013. In May 2013, however, the company said its developers would complete Firefox for Modern between Oct. 2, 2013, and March 20, 2014, with mid-November the likeliest date.

If Mozilla makes the targeted March 18 release, it will have spent two years crafting the browser, which will have shipped 17 months after the retail debut of Windows 8.

Although Mozilla has said it’s important that it have a Metro-ready browser to remain competitive — and Windows 8′s and Windows 8.1′s user share has climbed above the 10% mark– it’s unclear what percentage of those PC and tablet owners spend serious time in the UI, as opposed to the traditional Windows desktop.

Mozilla is also discussing a name for the browser, which was code named “Firefox Metro” during development and later was saddled with the label “Windows 8-style Firefox.”

One suggestion, forwarded by a Mozilla user experience designer, has been “Firefox Touch,” which got nods of approval from others in a Mozilla planning message forum.

“‘Windows 8-style Firefox’ is too long and already doesn’t make perfect sense with Windows 8.1 released, but will make less sense when Windows 9 comes out,” noted Brian Bondy, a Firefox platform engineer who has led the work on the Metro version. “I like Firefox Touch and I think we should go with that. It’s a product designed above all else for touch.”

Some, however, objected to labeling the browser as “Firefox Touch,” pointing out that that would downplay the Android browser Mozilla maintains, which is also touch-enabled.

“I agree with Jim that it should be simply Firefox, and that differentiation happens at the point of download,” countered Peter Scanlon, Mozilla’s acting chief marketing officer, in another message to the same discussion forum.

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Will Businesses Accept The Chromebook?

Sales of Chromebooks enjoyed rapid growth,going from basically nothing in 2012 to more than 20 percent of the U.S. commercial PC market, analyst firm NPD reported, while Windows PCs and Macs remained flat at best.

NPD estimated that, throughout all of 2013, 14.4 million desktops, notebooks, and tablets were sold through U.S. commercial channels, typically resellers. That compares to 16.4 million PCs, overall, sold in the U.S. during the third quarter alone–excluding tablets, according to IDC. All told, about 46.2 million PCs have been sold in the U.S. during 2013, IDC found.

Within that segment, however, NPD reported some intriguing findings. Chromebooks, once largely the province of Acer and Samsung, have been embraced by Dell, HP, and others–not the least of which are paying customers. In 2012, Chromebook sales were “negligible,” NPD reported. But in the space of a single year, they climbed to 21 percent, NPD found, helping push overall notebook PC growth up by 28.9 percent.

Windows notebooks, however, contributed nothing to that, as NPD found that growth was flat. Worse still, Macs actually declined, with combined sales of desktops and notebooks falling by 7 percent. Windows tablet sales tripled, albeit off what NPD called “a very small base”.

The message? Businesses are turning to the Web, which Chromebooks almost exclusively run. And those low-cost, Net-focused devices are becoming engines of productivity. As a result, they’re receiving validation from traditional PC vendors including Acer, Asus, Dell, and Hewlett-Packard, plus Google’s own Pixel.

“The market for personal computing devices in commercial markets continues to shift and change,” saidA Stephen Baker, vice president of industry analysis at NPD, in a statement.A “New products like Chromebooks, and reimagined items like Windows tablets, are now supplementing the revitalization that iPads started in personal computing devices. It is no accident that we are seeing the fruits of this change in the commercial markets as business and institutional buyers exploit the flexibility inherent in the new range of choices now open to them.”

Naturally, tablet sales continued to explode, capturing 22 percent(or about 3.16 million units) of all the computing device sales sold through the U.S. channel. Of all tablets sold commercially, iPads dominated with 59 percent of all unit sales, leaving the rest to Android (which grew more than 160 percent) and Windows.

Baker said that diversity will be key to the future success of hardware makers, a signpost for what vendors might release at 2014 and the weeks and months following.

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Cryptolocker Infects 250K Systems

DELL’s security research team has revealed that a new form of ransomware, dubbed “Cryptolocker” has managed to infect up to 250,000 devices, stealing almost a million dollars in Bitcoins.

“Based on the presented evidence, researchers estimate that 200,000 to 250,000 systems were infected globally in the first 100 days of the CryptoLocker threat,” Dell announced in a Secureworks post.

The firm worked out that if the Cryptolocker ransomware threat actors had sold its 1,216 total Bitcoins (BTC) that they collected from September this year, immediately upon receiving them, they would have earned nearly $380,000.

“If they elected to hold these ransoms, they would be worth nearly $980,000 as of this publication based on the current weighted price of $804/BTC,” Dell said.

Cryptolocker is unique when compared against your average ransomware. Instead of using a custom cryptographic implementation like many other malware families, Cryptolocker uses third-party certified cryptography offered by Microsoft’s CryptoAPI.

“By using a sound implementation and following best practices, the malware authors have created a robust program that is difficult to circumvent,” Dell said.

Conventionally, ransomware prevents victims from using their computers normally and uses social engineering to convince them that failing to follow the malware authors’ instructions will lead to real-world consequences. These consequences, such as owing a fine or facing arrest and prosecution, are presented as being the result of a fabricated indiscretion such as pirating music or downloading illegal pornography.

“Victims of traditional forms of ransomware could ignore the demands and use security software to unlock the system and remove the offending malware,” Dell explained. “Cryptolocker changes this dynamic by aggressively encrypting files on the victim’s system and returning control of the files to the victim only after the ransom is paid.”

Dell said that the earliest samples of Cryptolocker appear to have been released on 5 September this year. However, details about its initial distribution phase are unclear.

“It appears the samples were downloaded from a compromised website located in the United States, either by a version of Cryptolocker that has not been analysed as of this publication, or by a custom downloader created by the same authors,” Dell added.

Dell seems to think that early versions of Cryptolocker were distributed through spam emails targeting business professionals as opposed to home internet users, with the lure often being a ‘consumer complaint’ against the email recipient or their organisation.

Attached to these emails would be a ZIP archive with a random alphabetical filename containing 13 to 17 characters, containing a single executable with the same filename as the ZIP archive but with an EXE extension, so keep your eye out for emails that fit this description.

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Red Hat Releases Linux E-Beta

Red Hat has made available a beta of Red Hat Enterprise Linux 7 (RHEL 7) for testers, just weeks after the final release of RHEL 6.5 to customers.

RHEL 7 is aimed at meeting the requirements of future applications as well as delivering scalability and performance to power cloud infrastructure and enterprise data centers.

Available to download now, the RHEL 7 beta introduces a number of enhancements, including better support for Linux Containers, in-place upgrades, XFS as the default file system, improved networking support and improved compatibility with Windows networks.

Inviting customers, partners, and members of the public to download the RHEL 7 beta and provide feedback, Red Hat is promoting the upcoming version as its most ambitious release to date. The code is based on Red Hat’s community developed Fedora 19 distribution of Linux and the upstream Linux 3.10 kernel, the firm said.

“Red Hat Enterprise Linux 7 is designed to provide the underpinning for future application architectures while delivering the flexibility, scalability, and performance needed to deploy across bare metal, virtual machines, and cloud infrastructure,” Senior Product Marketing Manager Kimberly Craven wrote on the Red Hat Enterprise Linux blog.

These improvements address a number of key areas, including virtualisation, management and interoperability.

Linux Containers, for example, was partially supported in RHEL 6.5, but this release enables applications to be created and deployed using Linux Container technology, such as the Docker tool. Containers offers operating system level virtualisation, which provides isolation between applications without the overhead of virtualising the entire server.

Red Hat said it is now supporting an in-place upgrade feature for common server deployment types. This will allow customers to migrate existing RHEL 6.5 systems to RHEL 7 without downtime.

RHEL 7 also makes the switch to XFS as its default file system, supporting file configurations up to 500TB, while ext4 file systems are now supported up to 50TB in size and B-tree file system (btrfs) implementations are available for users to test.

Interoperability with Windows has also been improved, with Red Hat now including the ability to bridge Windows and Linux infrastructure by integrating RHEL 7 and Samba 4.1 with Microsoft Active Directory domains. Red Hat Enterprise Linux Identity Management can also be deployed in a parallel trust zone alongside Active Directory, the firm said.

On the networking side, RHEL 7 provides support for 40Gbps Ethernet, along with improved channel bonding, TCP performance improvements and low latency socket poll support.

Other enhancements include support for very large scale storage configurations, including enterprise storage arrays, and uniform management tools for networking, storage, file systems, identities and security using the OpenLMI framework.

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Did Qualcomm Snub Intel?

Earlier this year Intel made a lot of noise about leasing its foundries to third parties, but at least one big played does not appear to be interested.

Speaking at a tech conference, Qualcomm CEO Paul Jacobs said his company is not interested in using Intel fabs and that it will continue to cooperate with established foundries like TSMC.

Jacobs argued that Intel is great at building huge volumes of equally huge cores, but TSMC is a tad more flexible. He pointed out that foundries like TSMC can run build multiple different products simultaneously, controlling the process using software.
“Intel is famous, has been known for having a copy-exact model, so they need very large volumes of a particular chip to run through that,” Jacobs said, reports ITProPortal.

However, Jacobs did point out that he was glad to hear Intel is joining the foundry space and that it will be interesting to see how it plays out.

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