Qualcomm Acquires Patents From HP

Chip making giant Qualcomm Inc has purchased a patent portfolio from Hewlett-Packard Co, including those of Palm Inc and its iPaq smartphone, in a move that will bulk up HP’s offerings to handset makers and other licensees.

The portfolio comprises about 1,400 granted patents and pending patent applications from the United States and about 1,000 granted patents and pending patent applications from other countries, including China, England, Germany, Japan and South Korea.

The San Diego-based chipmaker did not say how much it paid for the patents.

The majority of Qualcomm’s profits come from licensing patents for its ubiquitous CDMA cellphone technology and other technology related to mobile devices. Instead of licensing patents individually, handset vendors, carriers and other licensees pay royalties to Qualcomm in return for access to a broad portfolio of intellectual property.

The patents bought from HP, announced in a release on Thursday, cover technologies that include fundamental mobile operating system techniques.

They include those that HP acquired when it bought Palm Inc, an early player in mobile devices, in 2010 and Bitfone in 2006. HP tablets made using Palm’s webOS operating system failed to catch on.

“There’s nothing left at Palm that HP could get any use out of so it’s better to sell the patents, which are always valuable to Qualcomm,” said Ed Snyder, an analyst with Charter Equity Research. “They have to keep that bucket full.”

The new patents will not lead to increased royalty rates for existing Qualcomm licensees, a Qualcomm spokeswoman said.

Last year, HP sold webOS, which it received as part of the $1.2 billion Palm acquisition, to South Korea’s LG Electronics Inc.

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Is Acer Doomed?

Taiwanese PC maker Acer reported worse-than-expected quarterly loss. Actually, it had been expected to be bad, but no one had predicted it would be this bad.

For the fourth quarter, the world’s No.4 PC vendor reported a net loss of $254 million. The company had posted a worse-than-expected net loss of $446 million in the third quarter and a $112.31 million loss in the same quarter of 2012. In short, its troubles have been getting worse for more than two years.

At the end of last year the company named former Taiwan Semiconductor Manufacturing Co sales executive Jason Chen as its new CEO and launched a new initiative to integrate hardware, software and cloud services. It will be a while before the new broom can sweep out two years of doom, so many are expecting more doom to emerge. Acer relied too heavily on making low-end laptops, which weakened its brand, it also missed the shift to mobile.

Acer’s senior executives are taking a 30 per cent voluntary salary cut starting January, the company said in a statement.

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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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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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FTC Pushes For Security Standards

Despite growing resentment from companies and powerful industry groups, the Federal Trade Commission continues to insist that it wants to be the nation’s enforcer of data security standards.

The FTC, over the past years, has gone after companies that have suffered data breaches, citing the authority granted to it under a section of the FTC Act that prohibits “unfair” and “deceptive” trade practices. The FTC extracted stiff penalties from some companies by arguing that their failure to properly protect customer data represented an unfair and deceptive trade practice.

On Thursday, FTC Chairwoman Edith Ramirez called for legislation that would bestow the agency with more formal authority to go after breached entities.

“I’d like to see FTC be the enforcer,” Law360 quoted Ramirez as saying at a privacy event organized by the National Consumers League in Washington. “If you have FTC enforcement along with state concurrent jurisdiction to enforce, I think that would be an absolute benefit, and I think it’s something we’ve continued to push for.”

According to Ramirez, the FTC supports a federal data-breach notification law that would also give it the authority to penalize companies for data breaches. In separate comments at the same event, FTC counsel Betsy Broder reportedly noted that the FTC’s enforcement actions stem from the continuing failure of some companies to adequately protect data in their custody.

“FTC keeps bringing data security cases because companies keep neglecting to employ the most reasonable off-the-shelf, commonly available security measures for their systems,” Law360 quoted Broder as saying.

An FTC spokeswoman was unable to immediately confirm the comments made by Ramirez and Broder but said the sentiments expressed in the Law360 story accurately describe the FTC’s position on enforcement authority.

The comments by the senior officials come amid heightening protests against what some see as the FTC overstepping its authority by going after companies that have suffered data breaches.

Over the past several years, the agency has filed complaints against dozens of companies and extracted costly settlements from many of them for data breaches. In 2006 for instance, the FTC imposed a $10 million fine on data aggregator ChoicePoint, and more recently, online gaming company RockYou paid the agency $250,000 to settle data breach related charges.

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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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Did Intel Have an IPad In Y2K?

Intel apparently built an IPAD ten years before Steve Jobs though of the tablet and the name. It was in the days when sticking an I in front of anything meant it was Intel rather than Apple and the Intel Pad, or IPAD for short, could browse the Internet, play music and videos, and even act as a digital picture frame.

Intel scrapped the IPAD before consumers could get their hands on it as its move into Tablets was seen as one of the outfit’s biggest blunders. According to CNET in the late 1990s and early 2000s, Intel wanted to diversify its operations beyond the PC. The IPAD came from one of several small teams within its research arm tasked with exploring new business opportunities. The IPAD, which included a touch screen and stylus, would not run entirely on its own but connected to a computer to browse the Internet through an Intel wireless technology.

Intel thought that “mobility” meant moving around your home or business and the IPAD was to be a portable device you could take around your house. The reason that they never thought of connecting it to the phone network was because Intel wanted to tie it all back to its core PC chip business. After several years of development on the Intel Web Tablet, then-CEO Craig Barrett unveiled the device at the Consumer Electronics Show in January 2001. The company planned to sell the tablet to consumers later that year.

Sadly though it miffed Intel’s PC partners, which didn’t want a product that could potentially compete with them and Intel caved in and cancelled the project.

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