PC Sales Continue The Downward Trend

Gartner is reporting the biggest slump in PC sales for almost two years. The second quarter report saw 68.4 million units shifted in the three-month period, a year-on-year reduction of 9.4 percent, and the steepest drop in seven quarters.

What’s more, the prediction is that the next quarter will see a further reduction of 4.4 percent.

It seems that the dislike of Windows 8, coupled with the impending arrival of Windows 10, has battered the sales of new PCs.

The fact that most PC users will be entitled to a free upgrade, coupled with the fact that chip and RAM technology haven’t moved on at a spectacular pace this year, has created a perfect storm among consumers who are waiting it out for their machines to be born again on 29 July (or 30, or 31, or possibly 1 August).

If you’re reading this and thinking ‘It’s just a dying market’ you’re not wrong, but you have only to look at today’s IDC figures to see that this really is made of Microsoft.

IDC is even more pessimistic than Gartner, quoting 66.1 million units, down 11.8 percent year on year.

But more importantly, when drilled down to the OEMs, you can see where the real problem lies. Apple is the only company in the top five not rooted in the Windows ecosystem.

It is also the only manufacturer to see a rise in its market share, and is now the fourth biggest vendor in the world, up 16.1 percent. Acer at number five has seen its share plummet by 25.9 percent.

Things were a bit rosier this time last year, because businesses were migrating away from Windows XP (not all of them, mind). This year, there’s no ballast and a lot of hesitation to see exactly how Windows 10 does before big orders start being deployed in enterprises.

“The price hike of PCs became more apparent in some regions due to a sharp appreciation of the US dollar against local currencies,” said Mikako Kitagawa, principal analyst at Gartner.

“The worldwide PC market experienced unusually positive desk-based growth last year due to the end of Windows XP support. After the XP impact was phased out, there have not been any major growth drivers to stimulate a PC refresh.”

IDC’s Loren Loverde, VP of worldwide PC trackers and forecasting, said: “We’re expecting the Windows 10 launch to go relatively well, though many users will opt for a free OS upgrade rather than buying a new PC.

“Competition from 2-in-1 devices and phones remains an issue, but the economic environment has had a larger impact lately, and that should stabilize or improve going forward.”

Meanwhile, Apple, despite having a tiny market share for its OS X operating system at just 7.5 percent, according to this month’s Netmarketshare figures, has managed to avoid being the winner or loser OEM by being the referee, which is a nice trick if you can do it.

Both analyst firms see the top three remaining as Lenovo, HP and Dell. Nothing to see there.

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Will Cortana Impact Windows 10 Battery Life?

It is just over a month until Microsoft introduces Windows 10, and as you should know by now, Cortana is one of the key elements of the new OS.

Cortana always listens in order to hear its name and be a smart digital assistant. This is Microsoft answer to Siri and Google Now that is making its way to Windows 10.

Unfortunately, this will affect your notebook battery life. We have spoken with a few industry sources and we can definitely confirm that Windows 10 with enabled Cortana will have an impact on the battery life. We are testing this as we speak to check how big the impact is.

We don’t know how significant the battery life decrease will be, but the good thing is that you will be able to switch Cortana off in case you don’t need it. We heard that many new Toshiba notebooks will come with a dedicated Cortana button, as this is the easiest way to save battery life. Cortana on Toshiba won’t listen until you press the button.

It would be smart if Microsoft would come up with Cortana enable / disable keyboard shortcut. Win + Q will enable Cortana news while Win + S will bring you directly to the Cortana search engine.

Windows 10 seems to be a logical upgrade for anyone who has Windows 8.1 on their notebooks and misses the options from Windows 7, and some familiar UI elements. We use Windows 8.1 on some devices, while most of our computers still have Windows 7 and nothing more. Microsoft DirectX 12 will force us to Windows 10 but from what awe can tell from Preview release, the upgrade to Windows 10 from with 7 seems like quite seamless and logical step.

Just make sure to be aware that your notebook battery life might suffer because of Cortana. Have in mind that this “talk to your PC and expect a smart answer” option can be disabled.

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Are Cyber Criminals Hard To Catch?

Despite 100,000 cyber crimes being committed every year UK authorities only caught 12 hackers.

In fact on average just one person was convicted of an offence under the Computer Misuse Act every month for the past 23 years.

We assume that it was not the same bloke, because he would be the most luckless criminal ever.

Campaigners from the Digital Trust, which supports victims of online abuse, said police do not know how to cope with the problem.

Need more laws

Criminal justice expert Harry Fletcher, who is a director of the Digital Trust, said: “The police still concentrate their resources on traditional offences offline, but most people are more likely to be mugged online than in the street.

“The law needs to change. It should, for example, be an offence to use any technological device to locate, listen to or watch a person without legitimate purpose.

“In addition, restrictions should be placed on the sale of spyware without lawful reasons. It should also be against the law to install a webcam or any other form or surveillance device without the target’s knowledge.”

Of course just creating new laws is not going to mean that more hackers will be caught, it will just mean that there are more crimes which they could be arrested for.

The conviction rate against hackers are not bad, if the coppers do arrest someone. Between 1990 to 2006 only 183 defendants were proceeded against and 134 found guilty under the Computer Misuse Act.

Unfortunately the Trust did not see, to realize that a lot of the hacks against companies and individuals come from overseas, particularly Russian or China. Changing laws in the UK would not change anything.

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MDM Coming To Office 365

Microsoft will rollout mobile device management (MDM) capabilities to Office 365 in 2015, making it easier for firms to manage corporate data across a range of mobile devices, including those running iOS and Android as well as Windows.

Microsoft unveiled the updates coming to its Office 365 cloud-delivered productivity suite in 2015 at its TechEd Europe conference.

These will enable customers to apply security policies against devices that connect to Office 365 to ensure that email and documents can be accessed only by approved devices, plus the ability to remotely wipe Office 365 data if necessary.

Julia White, Microsoft general manager for Office 365, said that the updates will enable customers to offer “conditional access” to Office documents and email, such as ensuring that any device used by employees has not been jailbroken or rooted, which could potentially pose a security risk.

Administrators will be able to set policies directly from the Office 365 administration portal, and enforce the use of a Pin to secure access to the device. Any wipe of Office 365 content will not affect the user’s personal data, White added.

These MDM features coming to Office 365 are actually powered by Microsoft’s Intune cloud-based management service and are a subset of Intune’s capabilities, the firm disclosed.

Intune itself is also getting some upgrades that will enable customers to benefit from additional security features if they also subscribe to Intune.

These will include data leak prevention measures that enable policies to be applied against managed applications, preventing users from copying and pasting data from an Office 365 app to another, for example, or copying files from Office 365 to elsewhere on the device.

While these capabilities are built in to Office 365, Microsoft will also enable this to be extended to other applications using Intune app wrapper functionality, White said.

White also confirmed that Microsoft is working on an Android version of the Office for iPad suite of mobile productivity tools that the firm announced for Apple’s tablet platform earlier this year.

Microsoft’s Office announcement comes amid speculation that the firm will release Office for Android next month.

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Opera Mini Goes To Windows Phone

Norwegian software maker Opera inked a deal to take over the browser building unit of Microsoft’s Nokia cellular phone unit and reported second-quarter earnings above expectations on Thursday, sending it shares sharply higher.

“We have signed a strategic licensing deal with Microsoft. We are basically taking over the browser building department in Nokia,” Opera Chief Executive Lars Boilsesen said. “This means that Opera Mini will become the default browser for Microsoft’s feature phone product lines and the Asha phones product lines.”

The deal will be profitable from the start, he added.

“All the current user base will be encouraged to upgrade to Opera Mini and all the new phones will come with Opera Mini pre-installed as a default browser. This is a great deal for us. We have dreamed of this for more than 10 years.”

In a separate statement, Opera said the licensing agreement applies to mobile phones based on the Series 30+, Series 40 and Asha software platforms.

“As part of the agreement, people who use the current browser for these phones, Xpress, will be encouraged to upgrade to the latest Opera Mini browser. Factory-new devices will have Opera Mini pre-installed.”

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Is Epic Turla Exploiting Windows XP?

Kaspersky Lab has discovered an espionage network that successfully attacked government institutions, intelligence agencies and European companies.

The firm has dubbed the spy operation Epic Turla, and said that it is in no doubt about its capabilities.

“Over the last 10 months, Kaspersky Lab researchers have analyzed a massive cyber-espionage operation which we call ‘Epic Turla’,” it said.

“The attackers behind Epic Turla have infected several hundred computers in more than 45 countries, including government institutions, embassies, military, education, research and pharmaceutical companies.”

Kaspersky said that Epic Turla used two zero-day exploits that affected Adobe and Microsoft software, along with some backdoor and social engineering tricks.

In particular, Kaspersky said a vulnerability in Windows XP and Windows 2003 – CVE-2013-5065 – termed a “privilege escalation vulnerability” is being used. “The CVE-2013-5065 exploit allows the backdoor to achieve administrator privileges on the system and run unrestricted. This exploit only works on unpatched Microsoft Windows XP systems.”

The use of this Windows XP flaw underlines the risk that the unsupported Windows XP OS poses. Kaspersky went on to explain that, once inside, attackers install their own rootkits and other malware tools and begin their surveillance.

“Once the attackers obtain the necessary credentials without the victim noticing, they deploy the rootkit and other extreme persistence mechanisms,” it said. “The attacks are still ongoing as of July 2014, actively targeting users in Europe and the Middle East.”

The attacks are just the latest in a long line of incidents that businesses need to be aware of as cyber attacks continue at an alarming rate.

In June the security firm Crowdstrike alerted the industry to Putter Panda, a cute-sounding but nasty piece of malware. That firm pointed an accusatory finger at China and charged it with espionage on the US and Europe.

Crowdstrike CEO George Kurtz said at the time, “China’s decade-long economic espionage campaign is massive and unrelenting. Through widespread espionage campaigns, Chinese threat actors are targeting companies and governments in every part of the globe.” Chinese authorities disputed this.

The report comes in the same week Hold Security reported uncovering a huge trove of 1.2 billion web passwords and login details that have been gathered by Russian cyber criminals.

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Is Malware Wreaking Havoc On XP?

One of the top three malware programs affecting businesses in the second quarter is a worm that takes advantage of the large number of companies still using Windows XP, Trend Micro has warned.

The worm, dubbed DOWNAD, also known as Conficker, can infect an entire network via a malicious URL, spam email, or removable drive. Windows XP is particularly susceptible to this threat because it is known to exploit the MS08-067 Server service vulnerability in order to execute arbitrary code.

DOWNAD also has its own domain generation algorithm (DGA) that allows it to create randomly-generated URLs. It then connects to these created URLs to download files to the system. Trend Micro said that around 175 IP addresses are found to be related to the DOWNAD worm and that these IP addresses use various ports and are randomly generated via the DGA capability of DOWNAD.

“During our monitoring of the spam landscape, we observed that in Q2, more than 40 percent of malware related spam mails are delivered by machines infected by DOWNAD worm,” said Trend Micro anti-spam research engineer Maria Manly in a blog post.

“A number of machines are still infected by this threat and leveraged to send the spammed messages to further increase the number of infected systems. And with Microsoft ending the support for Windows XP this year, we can expect that systems with this OS can be infected by threats like DOWNAD.”

The security company warned that spam campaigns delivering FAREIT, MYTOB, and LOVGATE payloads in email attachments are attributed to DOWNAD infected machines. FAREIT is a malware family of information stealers that download variants of the Zeus Trojan, while MYTOB is an old family of worms known for sending a copy of itself in spam attachments.

The other top sources of spam with malware are the CUTWAIL botnet, together with Gameover ZeuS (GoZ). Manly said CUTWAIL was actually previously used to download GoZ malware but now a malware called UPATRE employs GoZ malware or variants of ZBOT which have peer-to-peer functionality.

“In the last few weeks we have reported various spam runs that abused Dropbox links to host malware like UPATRE,” Manly said. “We also spotted a spammed message in the guise of voice mail that contains a Cryptolocker variant. The latest we have seen is a spam campaign with links that leveraged CUBBY, a file storage service, this time carrying a banking malware detected as TSPY_BANKER.WSTA.”

According to Manly, cybercriminals and threat actors are probably abusing file storage platforms to mask their malicious activities and go undetected in the system and network.

“As spam with malware attachment continues to proliferate, so is spam with links carrying malicious files. The continuous abuse of file hosting services to spread malware appears to have become a favoured infection vector of cyber criminals most likely because this makes it more effective given that the URLs are legitimate thereby increasing the chance of bypassing anti-spam filters,” she added.

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Can Malwarebytes Protect XP?

Malwarebytes has launched anti-exploit services to protect Windows users from hacking attacks on vulnerabilities in popular targets including Microsoft Office, Adobe software products and Java, a service which even offers protection for Windows XP users.

Consumer, Premium and Corporate versions of the service are available, and are designed to pre-emptively stop hackers from infecting Windows machines with malware.

“An exploit will typically first corrupt the memory of an application process, take control, then execute code,” said Malwarebytes director of special projects Pedro Bustamante.

“From the shell code it executes a payload that tells the exploit what to do and that in turn usually downloads malware from the internet and executes it. The final stage is usually where antivirus kicks in, when it’s being downloaded from the internet, and starts doing things like behavioural analysis to see if it’s malicious.

“We don’t care about that, what we do comes before then. We just look for exploit-like behaviour and block anything that looks like it at the shellcode or payload stages. We come into play before the malware even appears on the scene.”

The Consumer version of the anti-exploit service is free and offers basic browser and Java protection.

The Premium version costs $37.00  per user and adds Office and Adobe protection services as well as the ability to add custom shields to other internet-facing applications, like Messenger or Netflix.

The Corporate version costs$40.00 person user and offers complete anti-exploit protection and comes with Malwarebytes’ Anti-malware service and a toolkit for IT managers.

Bustamante explained that the technology is designed to help businesses and general web users defend against the new wave of exploit-based cyber attacks.

“Traditional security can’t deal with exploits. Every day we see people getting infected, even if they have the latest up-to-date antivirus readers, because of exploits,” he said. “This is why we care about the applications you run – Firefox, Chrome, Internet Explorer, Java, Acrobat [and Microsoft] Word, Excel [and] Powerpoint.”

Bustamante added that the service is doubly important for Windows XP users since Microsoft officially ceased support for the OS in April.

“We’re still seeing over 25 percent of our users running XP. For them this product is even more important,” he said.

“We see new zero-days if not every week, every month, and for XP users who are not getting any more patches from Microsoft this product will be essential.

“Every month Microsoft will be releasing security patches for newer versions of Windows. Every time Microsoft does this it’ll be a treasure map for hackers to find exploits on Windows XP.

“It’ll show them exactly where the vulnerabilities are, so every month will see an influx of new exploits targeting Windows XP.”

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Can MediaTek Challenge Qualcomm?

A top analyst has said that Qualcomm has nothing to fear from Media Tek’s announcement that it is gunning for the smartphone market.

Qualcomm rules North America and Europe while right now MediaTek is best known for being the leading player in the Chinese market. Now there are signs that MediaTek seems to have reached the maximum market share that they can achieve in China and will be looking to go after Qualcomm in other markets.

But Jefferies analyst Peter Misek views MediaTek’s cunning plan as more of a medium to long-term threat to Qualcomm versus a near-term threat.

He commented, “The high-end smartphone market is saturated and while we believe that pricing and subsidy pressure will become more severe globally, Qualcomm has significant opportunities through integration, iPhone 6, and royalty collections in China.”

Of course it is optimistic to think that the iPhone 6 will do well in China. Many analysts have lost their lunch money betting on Jobs’ Mob doing anything in China.

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Tesla Updates Charging Software

Tesla Motors Inc is making changes to prevent overheating of its charging systems, including giving customers upgraded wall adapters and providing charging-software upgrades, the electric-car company said on Friday.

The moves come after a November garage fire involving a Model S in Irvine, California, which the Orange County Fire Authority said may have been caused by a Tesla charging system or by a connection at the electricity panel on the wall of the garage.

At the time, Tesla disagreed with the fire officials’ findings, denying that the charging electronics were related to the fire. A Tesla spokeswoman did not immediately respond to a question on Friday about whether the upgrades were related to the Irvine fire.

In a Friday press release, Tesla said that its goal was to prevent excessive heating of the adapters used to charge its cars. A variety of factors ranging from corrosion to inappropriate wiring of electrical outlets can cause overheating, the company said.

A December tweak to its charging software tackles the issue through reducing charging by 25 percent if the charging system detects fluctuations in power entering the vehicle, Tesla said.

“Tesla believes that this software update fully addresses any potential risks,” the release said. But as a precaution, it said it would make available an improved wall adapter with a thermal fuse for affected customers, staring in a few weeks.

Separately, three road fires in Model S sedans caused Tesla’s stock to fall sharply in October.

The fires occurred in Washington state, Tennessee and Mexico. In the U.S. incidents, Model S sedans caught fire after running over road debris. In Mexico, a Model S caught fire after striking a concrete wall.

On Friday, Tesla’s stock fell 1.23 percent to $145.72, up from levels under $120 in late November but down from its high of $194.50 in late September.

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