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.

Source

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.

Source

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.

Source

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.

Source

Can Blackberry Be Sold?

Struggling smartphone maker BlackBerry is reviewing several options that could include joint ventures, partnerships or an outright sale, as the company’s leading shareholder steps down from its board in a possible prelude to taking a different role.

BlackBerry, which pioneered on-your-hip email with its first smartphones and email pagers, said on Monday it had set up a committee to review its options, sparking debate over whether Canada’s one-time crown jewel is more valuable as a whole or snapped up piece by piece by competitors or private investors.

The company said Prem Watsa, whose Fairfax Financial Holdings Ltd is BlackBerry’s biggest shareholder, was leaving the board to avoid a possible conflict of interest as BlackBerry determines its next steps.

The resignation of Watsa, often described as Canada’s version of Warren Buffett, suggests Fairfax may be part of a solution.

BlackBerry, once a stock market darling, has bled market share to the likes of Apple Inc and phones using Google Inc’s Android operating system, and its new BlackBerry 10 smartphones have failed to gain traction with consumers.

Blackberry shares rose 7.5 percent to $10.80 in New York and C$10.84 in Toronto in afternoon trading. But the shares remain well below the levels seen in June, before the company reported dismal results that included poor sales of the BlackBerry 10 phones it viewed as key to a successful turnaround.

The share price peaked at about C$150 in June 2008.

A clean balance sheet makes the smartphone seller an enticing takeover candidate. Like Dell Inc, it is a tech icon in need of a turnaround. But BlackBerry’s cash flow is worse, meaning leverage would be extra risky.

The company’s assets include a well-regarded services business that powers BlackBerry’s security-focused messaging system, worth $3 billion to $4.5 billion; a collection of patents that could be worth $2 billion to $3 billion; and $3.1 billion in cash and investments, according to analysts.

But the smartphones that bear its name have little or no value, and it may cost $2 billion to shutter that unit, the analysts said.

Analysts expressed skepticism about the new committee, noting that BlackBerry announced similar steps more than a year ago when it hired JPMorgan and RBC as financial advisers. A source said both are still involved in the strategic review.

Source

Will Lenovo Release A Phablet?

Windows Phone may not be taking the world by storm, but it is a very interesting alternative for anyone who’s not in love with iOS or Android.

Now it seems Redmond’s fledgling platform is about to get its first phablet, courtesy of Lenovo. The device reportedly features a quad-core application processor and a 1080p screen. The screen size is estimated at 4.7 to 5 inches.

This would make it the biggest Windows Phone device to date, although it doesn’t sound very big or “phabletish” by Android standards. The biggest currently available WP8 phone is Samsung’s Ativ Si8750, with 4.8-inch 720p screen.

Nokia is Microsoft’s top hardware partner and it has been rumored to be working on a Windows phablet of its own. However, the persistent rumors have not panned out, at least not yet.

Source

Baidu Acquires App Maker

Baidu Inc, China’s top search engine, plans to purchase app store 91 Wireless for $1.9 billion to strengthen its position in the country’s highly competitive mobile computing sector.

Baidu will buy a 57.4 percent stake in 91 Wireless, one of China’s earliest appstores, from NetDragon Websoft Inc for $1.09 billion, and the remainder from other shareholders, both companies said on Tuesday.

“It’s good for Baidu because if you look at mobile, currently apps are more popular than mobile sites because Internet download speeds are slow. So with the acquisition of this appstore, Baidu can work more closely with the apps developer and be able to enhance further their search capabilities,” said Elinor Leung, an analyst with CLSA in Hong Kong.

China’s mobile Internet market is expected to double to about 300 billion yuan ($48 billion) in 2014 from 150 billion yuan in 2012, with the number of active mobile Internet users rising to 749 million from 521 million during the same period, according to research firm Analysys International.

NetDragon’s shares lost as much as a fifth of their value on Tuesday and were down 18 percent at HK$19.74 at 0305 GMT (11.05 p.m ET)

NetDragon also said in a statement that it would scrap the planned spinoff and listing of 91 Wireless on Hong Kong’s secondary Growth Enterprise Market if the acquisition is finalized.

Source

MS Office Demand Fizzles

After a promising start, downloads of Microsoft’s free Office for the iPhone quickly nosedived, as the latest data from a mobile app analytics company showed.

But at least 200,000 copies of the small suite — iPhone versions of Word, Excel and PowerPoint — were downloaded in the first six days.

Distimo, a Dutch firm that tracks app store market data for several platforms, including Apple’s iOS, Google’s Android, and Microsoft’s Windows 8 and Windows Phone, said Office Mobile for the iPhone debuted in the No. 10 spot on June 15, the day after Microsoft launched the free app.

That was Office Mobile’s peak: On June 16, Office Mobile slipped to the No. 19 position among all free iPhone apps, then continued to slide throughout the week of June 17-23, starting that seven-day stretch at No. 36, falling to No. 86 by Friday, June 21, and ending at No. 299 on June 23.

From June 24 to July 6, Office Mobile was not on Distimo’s leaderboard, which lists only the top 400 downloaded apps.

The number of downloads of Office Mobile for iPhone is unknown — Distimo requires a paid account to show developers the estimated downloads of their apps and those of competitors, and did not reply to questions Sunday — but the tally was probably significant.

According to Distimo,  to place in the App Store’s No. 10 spot, an app must average 72,000 downloads daily. Office Mobile was ranked No. 10 on June 15. Apps ranked at No. 50 averaged 23,000 downloads daily: Office Mobile held position at No. 50 or lower for five consecutive days.

Those numbers implied that at least 200,000 copies of Office Mobile were downloaded in the six days between June 15 and June 20.

Likewise, the sharp decline of Office Mobile’s position in the App Store’s free list after just a week hints at a pent-up demand that was quickly satisfied.

Although rumors of Office on iOS had circulated since the iPad’s 2010 introduction, they heated up last November when reports claimed Microsoft would launch a mobile version of the suite this year and tie the software to Office 365. At the time, most analysts agreed that Office 365 was the smart move because it could boost interest in the subscription concept Microsoft has bet will result in more, and more regular, revenue from its Office cash cow.

Linking Office on iOS to Office 365 would also let Microsoft avoid the Apple “tax,” the 30% cut that Apple takes from all App Store sales.

Only Office 365 subscribers can use Office Mobile. Subscriptions range from the consumer-grade Office 365 Home Premium, which costs $100 annually, to several business plans that start at $150 per user per year and climb to $264 per user per year.

Source

BlackBerry’s Secure Goes To iOS

BlackBerry continues to expand its support for Android and iOS with Secure Work Space, which separates work and personal apps and data, as the device maker tries to hold on to enterprise users by becoming more platform neutral.

Remaining relevant in a world where more than 9 out of 10 smartphones shipped are based on either Google’s Android or Apple’s iOS isn’t easy for BlackBerry. But the company still has fans in enterprise IT departments and hopes to remain an option for users by continuing to embrace the two dominant platforms. The company can already manage devices based on Android and iOS, and support for BlackBerry Messenger is on the way.

BlackBerry announced Secure Work Space in March and has now made good on a promise to ship it before June 30. The software is an add-on to BlackBerry Enterprise Service (BES) 10, and it adds a managed container to protect corporate data and applications running on Android and iOS devices.

Users get integrated email, calendar and contacts, as well as secure browser access to intranets and document editing capabilities. Data is protected both when stored on the device and when transferred to and from enterprise servers, according to BlackBerry.

“The concept is right and very similar to what AT&T offers with Toggle. Creating two different “personas” on mobile devices is becoming a best practice for enterprises. Buying it from BlackBerry is probably most relevant for enterprises that have a major commitment to BlackBerry 10 and BES 10,” said Leif-Olof Wallin, research vice president at Gartner.

On BlackBerry 10 smartphones, BlackBerry has tightly integrated a personal and a work environment with the Balance feature.

BlackBerry is far from the only vendor that has adopted this concept. One competitor is Good Technology, which on Tuesday announced a whole host of new applications compatible with its Dynamics Security Mobility platform, which includes support for both app wrapping and encrypted app containers. The list of newcomers includes Mobility for SAP and remote access app Splashtop.

But for those interested in Secure Work Space, which is based on software from OpenPeak, the BES 10 server software is free to download. Annual client access licenses for Secure Work Space are $99 per year and device. For enterprises that want to get their feet wet, the platform is also available as a 60-day free trial bundle that includes device management for BlackBerry 10, iOS and Android devices, as well as Secure Work Space licenses for 50 users.

Source

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.

Source

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.

« Previous Page — Next Page »