HTC Cutting US Jobs

In another sign of trouble at HTC, the Taiwan-based mobile device maker began downsizing its U.S. operations on Friday, eliminating an undisclosed number of staff.

The move is meant to “streamline and optimize” the company’s U.S. organization “after several years of aggressive growth,” HTC said in a Monday email. A company spokeswoman declined to specify how many employees would be affected.

“However, to achieve our long-term goals as a business and return maximum value to our shareholders, this is a necessary step to drive ongoing innovation,” the company said.

HTC has been facing a difficult year on weak earnings that have sent its stock price tumbling. In the second quarter, its net profit plummeted 83 percent year-over-year, despite strong reviews for its flagship smartphone, the HTC One.

The weak financials are major change from only a couple years ago when HTC was riding high selling Android smartphones in the U.S. But starting in late 2011, the company’s net profit has sagged on increased competition from Samsung and Apple.

To recover, HTC has focused on building up its “One” smartphone brand. In addition, the company has expanded its China presence, and in August launched a new marketing campaign that’s enlisted Hollywood actor Robert Downey Jr.

While the company has largely focused selling high-end handsets, in July HTC said it was planning on selling more mid-tier and entry level phones to regain market share. The new phones will launch at end of the third quarter or early fourth quarter.

But the company’s troubles go beyond issues with smartphone sales and marketing. In September, Taiwanese authorities arrested three HTC employees for allegedly stealing company secrets. One of the employees arrested was Thomas Chien, HTC’s vice president of product design.

HTC has declined to offer further details on the case.

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AMD’s Kaveri Coming In Q4

AMD really needs to make up its mind and figure out how it interprets its own roadmaps. A few weeks ago the company said desktop Kaveri parts should hit the channel in mid-February 2014. The original plan called for a launch in late 2013, but AMD insists the chip was not delayed.

Now though, it told Computerbase.de that the first desktop chips will indeed appear in late 2013 rather than 2014, while mobile chips will be showcased at CES 2014 and they will launch in late Q1 or early Q2 2014.

As we reported earlier, the first FM2+ boards are already showing up on the market, but at this point it’s hard to say when Kaveri desktop APUs will actually be available. The most logical explanation is that they will be announced sometime in Q4, with retail availability coming some two months later.

Kaveri is a much bigger deal than Richland, which was basically Trinity done right. Kaveri is based on new Steamroller cores, it packs GCN graphics and it’s a 28nm part. It is expected to deliver a significant IPC boost over Piledriver-based chips, but we don’t have any exact numbers to report.

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Are More Firms Moving To Tegra 4?

A curious rumor is coming out of Taiwan this morning. Nvidia is reportedly seeing more Tegra 4 orders, boosted by the Xiaomi Mi3 smartphone, Surface RT 2 and new tablets from Asus, Toshiba and HP. The source is Digitimes, or its moles in the “upstream supply chain” to be specific. Specific is not the word usually associated with such sources and we have no specific numbers to report.

However, while Nvidia is seeing a bit more interest for Tegra 4 it simply has no high-volume design wins and shipments will remain low until it is eventually phased out in favour of the Tegra 5. We wrote about Nvidia’s Tegra 4 volume woes last month, here.

The Tegra 4 still has just a handful of design wins and the fact that most of them are high-end tablets is not encouraging at all. Not much has changed since our previous report, although Nvidia did manage to land a single smartphone design win, albeit not a major one.

We still believe Tegra 4 shipments will be modest at best and new Android tablet design wins will not help much. Neither will the Shield and Tegra Note tablets.

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Dell Bets On Windows 8

Demand for Windows 8 may be still somewhat lukewarm, but Dell is maintaining its stance that it is the best operating system for business tablets and plans to roll out more Windows 8-based products later this year, according to a senior executive at the computer maker.

“Our Windows tablets are more secure and easier to manage than Android-based products and iOS-based products [because Windows is] on our tablets,” said Jeff Clarke, vice chairman and president of global operations at Dell. “And we are not going to change that.”

Windows-based devices accounted for just 4.5% of tablet sales in this year’s second quarter, according to research firm IDC. In comparison, Android-based devices had 62.6% of the tablet market and Apple’s iPad had 32.5%.

The slow adoption of Windows 8 tablets is partly due to their high prices, and to the operating system’s lack of mobile apps, analysts say. Windows 8 has also received mixed reviews, with some people citing its lack of a Start button in the desktop mode as a major problem.

But Dell expects demand for Windows 8 devices to pick up with the availability of Windows 8.1, which Microsoft will release in October.

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HTC Exec Leaks Trade Secrets

Three HTC Corp design executives were arrested on suspicion of illegally sharing trade secrets, sending the Taiwanese smartphone maker’s shares tumbling as its troubles deepened amid a wave of senior staff departures and disappointing sales.

Taipei prosecutors confirmed that HTC vice president of product design Thomas Chien, research and development director Wu Chien-Hung and senior manager of design and innovation Justin Huang were arrested on Friday.

Chien and Chien-Hung remain in custody, while Huang was released on bail, prosecutors office spokesman Mou Hsin Huang said.

The executives were also accused of making false commission fee claims totaling around T$10 million ($334,200). No further details about the allegations were immediately available.

The arrests came in response to a complaint filed by HTC last month accusing the executives of leaking trade secrets.

HTC declined to comment except to say the investigation had no impact on its operations. Chien and Chien-Hung could not be reached and Huang was not immediately available to comment.

Media reports citing the police said the executives were planning to use stolen new interface technology to set up a new mobile design company aiming at Chinese vendors.

Rocked by internal feuding and executive exits, and positioned at the high end of a smartphone market that is close to saturation, HTC has seen its market share slump to below 5 percent from around a quarter five years ago.

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Is The Tesla Hackable?

It’s the curse of the connected car once it’s linked to the Internet, it’s, well, on the Internet. In the case of the Tesla Model S, this means that mischievous hackers could, in theory, control some functions of the vehicle and even snoop without the owner’s knowledge.

Tesla offers Android and iPhone apps for Model S owners, which can be used to check the vehicle’s battery, track its location and status, and tweak several other settings, like climate control and the sunroof. It can also be used to unlock the doors on the Model S.

Dell senior engineer George Reese says the REST API used by Tesla to provide access for Android and iPhone apps has several fairly serious security flaws, which could offer a way in for unscrupulous hackers.

According to an article written by Reese for O’Reilly, Tesla appears to have broken from accepted best practice when designing the API for the Model S.

“It’s flawed in a way that makes no sense. Tesla ignored most conventions around API authentication and wrote their own. As much as I talk about the downsides to OAuth (a standard for authenticating consumers of REST APIs–Twitter uses it), this scenario is one that screams for its use,” he wrote.

However, Reese notes, this is merely a potential attack vector, not one that could be immediately exploited. That said, a compromised website particularly one designed to provide “value-added services” via the API to Tesla drivers could prove highly damaging.

“I can … honk their horns, flash their lights, and open and close the sunroof. While none of this is catastrophic, it can certainly be surprising and distracting while someone is driving,” Reese wrote.

Automotive hacking has been posited by experts for some time, and several presentations at this year’s Defcon detailed fairly comprehensive methods of compromising some models.

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Apple To Acquire Embark

Apple is reportedly purchasing mapping app developer Embark, in a move that could lend more real-time navigation features for public transit to Apple’s own Maps app.

The acquisition, which was first reported by tech journalist Jessica Lessin, follows other recent mapping purchases for Apple: HopStop, another maker of apps for public transit directions; and Locationary, which provides data about local businesses; and WifiSLAM, an indoor location and mapping company.

Apple did not directly confirm its acquisition of Embark, but in an emailed statement said, “Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.”

Apple declined to comment further on the deal.

Apple has faced some serious challenges over the past year in providing a consistently solid mapping product with its Maps app. Last September Apple CEO Tim Cook was forced to publicly apologize for a series of issues plaguing the company’s Maps app in Apple’s iOS 6 operating system.

Embark is a company based in the San Francisco Bay Area that makes a mobile mapping app designed to help people navigate mass transit systems. The company’s app provides “tailored trips” specific to the user’s region, along with notifications for late-running trains and other advisories and closures.

Embark’s technology, if it does find its way into a future Apple product, could enhance Apple’s mapping products and make the company a stronger competitor to rivals like Google. Google’s Maps app already offers real-time public transit navigation features, as do some smaller players like iTransitBuddy.

Embark’s app is available for free on the iPhone for 10 transit systems including Boston’s MBTA, Chicago’s L, the New York City Subway and San Francisco’s Bart and Caltrain systems, with more on the way, according to Embark’s website.

It is not clear whether Embark’s app will be shut down as part of the acquisition. The app was still available in Apple’s App Store at the time of this article’s posting.

Embark’s team could not be immediately reached to comment on the deal.

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Will The Tegra Processor Pay Off?

Last year Nvidia’s Tegra gamble seemed to be paying off nicely, but the insanely competitive SoC market moves fast and all it takes for things to go badly wrong is one botched generation. The Tegra 4 was late to the party and Nvidia eventually ended up with a big and relatively powerful chip that nobody wanted.

In its latest earnings call Nvidia made it clear that revenues from Tegra are expected to decline $200 to $300 million this year from about $750 million last year. Even this seems like a relatively optimistic forecast. Tegra 3 ended up in quite a few high-volume products, such as the Nexus 7, HTC One X, LG Optimus X4 and a bunch of other phones and tablets. On paper, Tegra 4 will end up with a similar number of design wins, maybe even more, but nearly all of them are low-volume products.

At the moment there are only a handful of Tegra 4 products out there. These include HP’s Slatebook 10, Toshiba eXcite Pro and eXcite Write tablets and Nvidia’s own Shield console. Nvidia’s 7-inch Tegra Tab is also on the way, along with the Surface RT 2. Some Chinese vendors like ZTE are also expected to roll out a Tegra 4 phone here and there, but the chip won’t end up in any big brand phones.

Nvidia does not release any Tegra unit shipment info, so we can only guess how many Tegra 3 and Tegra 4 chips are out there, but it doesn’t take much to realise Tegra 4 is a flop. Shipments of the original Nexus 7, powered by the Tegra 3, are estimated just north of six million units. Surface RT shipments were abysmal. Earlier this year analysts put the figure at just 900,000 units after a full quarter of sales. Microsoft eventually took a massive write-down on its Surface RT stock. LG and HTC didn’t reveal any shipment figures for the Optimus 4X and HTC One X, either. HTC shipped about 40 million phones last year, while LG managed about 27 million. We can’t even begin to estimate how many of them were flagship products powered by Tegra, but the number was clearly in the millions.

This time around Nvidia can’t count on strong smartphone sales, let alone the Nexus 7 and Surface RT. Even if it scores high-end tablet design wins, the truth is that high-end Android tablets just aren’t selling well. Nvidia needed high-volume design wins and Android tablets just won’t do the trick. Qualcomm is in the new Nexus 7 and the HTC One. Back in May analysts reported that HTC One sales hit the 5 million mark in the first two months of sales, although shipments have slowed down since then. Millions of Snapdragons found a home in the HTC One and millions more will end up in the new Nexus 7.

Nvidia’s talk of a $200 to $300 million hit this year doesn’t exactly paint the full picture. Tegra 3 shipments in the first two quarters of 2013 were modest, but relatively good. However, nothing took its place and the true extent of the Tegra 4 flop will only become visible in the first quarter of 2014 and beyond. The big hope is that the Tegra 4i and Tegra 5 will start to come online by then, so the numbers for the full year won’t be as terrible, but it is abundantly clear that Nvidia cannot afford another Tegra 4.

As for Nvidia’s Tegra Tab and Shield, they might do well. Nvidia knows a thing or two about hardware, but even if they prove successful, they just won’t be enough, at least not in this cycle.

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Is Apple Doomed?

The necromancy department of Apple has been summoning the spirit of Steve Jobs in the hope of turning around its current dismal growth figures. For a while now, even amongst Apple fanboys, there has been a belief that Jobs’ Mob has gone done the tubes since Jobs croaked.

It is a myth of course, Jobs’ specialty was not innovation but to market a working ideas as if it were his own. But either way Apple is attempting to try and convince everyone that the new iPhone was personally designed by its former CEO. Even after being dead for a while now, and having no impact over the disasters the company has since suffered, Jobs apparently was on board for the iPhone 5S.

According to Apple’s government liaison Michael Foulkes, Jobs oversaw the design of two models of iPhone to go on sale after his death. We suspect that it will take full resurrection before anyone takes this particular spin seriously. If Jobs could really see into the future and predict where his toys would be three years after he died, we would have thought he would have also seen that was a stupid idea not to accept conventional medical treatment for his cancer until it was too late.

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NOAA Super Computer Goes Live

The National Oceanic and Atmospheric Administration has rolled out two new supercomputers that are expected to improve weather forecasts and perhaps help better prepare us for hurricanes.

The two IBM systems, which are identical clones, will be used by NOAA’s National Weather Service to produce forecast data that’s used in the U.S. and around the world.

One of the supercomputers is in Reston, Va.; the other is in Orlando. The NWS can switch between the two in about six minutes.

Each is a 213-teraflop system running a Linux operating system on Intel processors. The federal government is paying about $20 million a year to operate the leased systems.

“These are the systems that are the origin of all the weather forecasts you see,” said Ben Kyger, director of central operations at the National Centers for Environmental Prediction.

NOAA had previously used identical four-year-old 74-teraflop IBM supercomputers that ran on IBM’s AIX operating system and Power 6 chips.

Before it could activate the new systems, the NWS had to ensure that they produced scientifically accurate results. It had been running the old and new systems in parallel for months, comparing their output.

The NWS has a new hurricane model, which is 15% more accurate in day five of a forecast for a storm’s track and intensity. That model is now operational and running on the new systems. That’s important, because the U.S. is expecting a busy hurricane season.

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