Iphone

Apple Says It Could Miss $9 Billion In iPhone Sales Due To Weak Demand (theverge.com) 332

An anonymous reader quotes a report from The Verge: Apple CEO Tim Cook published a letter to investors today warning of weaker than expected first-quarter earnings, citing "fewer iPhone upgrades than we had anticipated." The weakened demand came primarily from China, although Cook notes that "in some developed markets, iPhone upgrades also were not as strong as we thought they would be." In his letter, Cook offers several explanations for the lower earnings guidance: earlier launch timing of the iPhone XS and XS Max compared to the iPhone X, the strength of the US dollar, supply constraints due to the number of new products Apple released in the fall, and overall economic weakness in some markets. But the core issue remains simple: people just aren't buying as many new iPhones as Apple hoped. All in all, Apple's revised Q1 guidance forecast is dropping by up to $9 billion in revenue compared to its original estimate.
The Internet

Ajit Pai Thanks Congress For Helping Him Kill Net Neutrality Rules (arstechnica.com) 215

FCC Chairman Ajit Pai today thanked Congress for preventing the U.S. government from enforcing net neutrality rules. "The Pai-led Federal Communications Commission repealed Obama-era net neutrality rules, but the repeal could have been reversed by Congress if it acted before the end of its session," reports Ars Technica. "Democrats won a vote to reverse the repeal in the Senate but weren't able to get enough votes in the House of Representatives before time ran out." From the report: "I'm pleased that a strong bipartisan majority of the U.S. House of Representatives declined to reinstate heavy-handed Internet regulation," Pai said in a statement marking the deadline passage today. Pai claimed that broadband speed improvements and new fiber deployments in 2018 occurred because of his net neutrality repeal -- although speeds and fiber deployment also went in the right direction while net neutrality rules were in place. "Over the past year, the Internet has remained free and open," Pai said, adding that "the FCC's light-touch approach is working." Pai didn't mention a recent case in which CenturyLink temporarily blocked its customers' Internet access in order to show an ad or a recent research report accusing Sprint of throttling Skype (which Sprint denies).
Television

Hackers Are Taking Over Chromecasts To Promote a YouTube Channel (theverge.com) 90

In what is being referred to as CastHack, hackers j3ws3r and HackerGiraffe are promoting Felix "PewDiePie" Kjellberg by forcing TVs to display a message encouraging people to subscribe to his YouTube channel. "The hack takes advantage of a router setting that makes smart devices, like Chromecasts and Google Homes, publicly viewable on the internet," reports The Verge. "The attackers are then able to gain control of the devices and broadcast videos on a connected TV." From the report: A website for the attack claims to count the number of TVs forced to show the PewDiePie message and currently says more than 3,000 have been affected. While it's not clear that this is an accurate number (it has reset several times), a number of people posted on Reddit that the video had appeared on their TV. Google tells The Verge it has received reports from people who had "an unauthorized video played on their TVs via a Chromecast device," but said the issue was the result of router settings. Both HackerGiraffe and Google told The Verge the best way for affected users to fix the issue is to turn off Universal Plug and Play (UPnP) on their routers. The two hackers said they were behind a hack in November that forced printers around the world to print out sheets of paper telling people to subscribe to PewDiePie.
Social Networks

Iran Extends Social Media Crackdown With Move To Bar Instagram (bloomberg.com) 37

An anonymous reader quotes a report from Bloomberg: Authorities in Iran are preparing to block access to Instagram, extending their crackdown on social media to the only major platform still freely available. The National Cyberspace Council approved steps toward blocking the service, Javad Javidnia, deputy for cyberspace affairs at the public prosecutor's office, was cited as saying by the semi-official Donya-e Eqtesad newspaper. Instagram would join Twitter, Facebook, YouTube and Telegram in being banned in the Islamic Republic, ostensibly for reasons of national security.

Despite the restrictions, Iranians including Supreme Leader Ali Khamenei, President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif continue to use the services, which are widely accessible via proxy servers. Rouhani's verified Twitter account has over 800,000 followers. Javidnia said efforts to filter Instagram hadn't worked. While judicial and political officials involved were yet to reach a consensus on barring the site, the prosecutor can take a unilateral decision to do so, he said.

The Almighty Buck

Tesla Will Cut Prices To Combat Tax Credit Phase Out (cnn.com) 196

Tesla is cutting its car prices in the United States by $2,000 to combat a cut in a federal tax credit for its buyers. "Tesla triggered the tax credit phase-out in July when it became the first car maker in the United States to sell more than 200,000 plug-in vehicles," reports CNN. "The government designed the credit to be phased out for each automaker once it reaches that milestone." From the report: Before that benchmark, Tesla buyers were entitled to a tax credit of $7,500 for purchasing a plug-in electric car. But as of January 1, Tesla buyers will only get half that credit, or $3,750, for the next six months. The credit falls to $1,875 in July, and then disappears in 2020. The tax credit phase-out comes just as Tesla was preparing to sell a $35,000 version of its Model 3 sedan, the first time it will be taking aim at the price-conscious mass market. CEO Elon Musk said in an interview on "60 Minutes" that he expects the lower-priced version of the Model 3 to be available in five to six months.

Tesla also reported strong production and sales for the just completed fourth quarter. Total sales were up 8% and Model 3 sales were up even more, about 13%, to 63,150 vehicles. That works out to an average of about 4,900 Model 3s per week in the quarter, putting it in range of its goal of 5,000 Model 3's a week.

The Courts

Oregon Unconstitutionally Fined a Man $500 for Saying 'I am an Engineer,' Federal Judge Rules (vice.com) 331

A federal district court has ruled that the state of Oregon illegally infringed on a man's First Amendment rights for fining him $500 because he wrote "I am an engineer" in a 2014 email to the state's Engineering Board. The court ruled that the provision in the law he broke is unconstitutional, which opens the door for people in the state to legally call themselves "engineers." Motherboard reports: This dystopian saga dates back to 2013, when Mats Jarlstrom's wife, while driving, was caught by a red light camera near their home in Beaverton, Oregon. Rather than pay the red light camera fine, Jarlstrom, an electrical engineer, spent months researching the specifics of yellow light timing and red light cameras, and learned that his wife had likely been ticketed for running a yellow light. Jarlstrom began sharing his findings on his personal website, at conferences, and even got featured on 60 Minutes. He also wrote several emails to the Oregon Board of Engineers explaining what he had found. In the email, he noted that he was an "engineer."

Rather than looking into whether traffic light timing should be changed, however, the board sent Jarlstrom a warning -- and then a $500 fine for the crime of "practicing engineering without being registered." Jarlstrom had violated one of Oregon's "Title Laws," which states that "no persons may ... hold themselves out as an 'engineer'" unless they are an "individual who is registered in this state and holds a valid certificate to practice engineering in this state." Jarlstrom has a bachelor's degree in electrical engineering and spent his career working in electronics, but wasn't board certified. He sued the state's engineering board and, last week, a U.S. District Court judge for the District of Oregon ruled that the state's law is unconstitutional.
The judge wrote: "The statutes prohibit truthfully describing oneself as an 'engineer,' in any context. This restriction clearly controls and suppresses protected speech, and enforcement of the statute against protected speech is not a hypothetical threat. The term 'engineer,' standing alone, is neither actually nor inherently misleading. Courts have long recognized that the term 'engineer' has a generic meaning separate from 'professional engineer' and that the term has enjoyed 'widespread usage in job titles in our society to describe positions which require no professional training.'"

"The judge ordered that the word 'engineer' be struck from Oregon's law, which is 'substantially overbroad in violation of the First Amendment' and specifically noted that Jarlstrom may describe himself publicly and privately using the word 'engineer' and that he may continue to talk about traffic light timing publicly," reports Motherboard.
Businesses

Fortnite Star Ninja Says He Raked in Millions of Dollars Last Year (cnet.com) 121

In case you needed another reminder that Fortnite was the biggest game of 2018, esports star Ninja says he racked up millions of dollars playing it last year. From a report: Tyler Blevins, aka Ninja, told CNN in a story Monday that he made nearly $10 million last year playing Fortnite: Battle Royale. Blevins has more than 12.5 million followers on game streaming service Twitch and more than 20 million subscribers on streaming giant YouTube. The professional gamer told CNN he made most of his fortune from advertisers on YouTube and Twitch, as well as from video game tournaments and sponsors like Samsung and Red Bull. The famous Fortnite gamer snatched the spotlight when he broke a Twitch viewing record in March. Blevins streamed himself and rapper Drake playing duo in Fortnite, which more than 600,000 people watched live at its peak.
Earth

Earth is Missing a Huge Part of Its Crust. Now We May Know Why. (nationalgeographic.com) 163

A fifth of Earth's geologic history might have vanished because planet-wide glaciers buried the evidence. From a report: The Grand Canyon is a gigantic geological library, with rocky layers that tell much of the story of Earth's history. Curiously though, a sizeable layer representing anywhere from 250 million years to 1.2 billion years is missing. Known as the Great Unconformity, this massive temporal gap can be found not just in this famous crevasse, but in places all over the world. In one layer, you have the Cambrian period, which started roughly 540 million years ago and left behind sedimentary rocks packed with the fossils of complex, multicellular life. Directly below, you have fossil-free crystalline basement rock, which formed about a billion or more years ago.

So where did all the rock that belongs in between these time periods go? Using multiple lines of evidence, an international team of geoscientists reckons that the thief was Snowball Earth, a hypothesized time when much, if not all, of the planet was covered in ice. According to the team, at intervals within those billion or so years, up to a third of Earth's crust was sawn off by Snowball Earth's roaming glaciers and their erosive capabilities. The resulting sediment was dumped into the slush-covered oceans, where it was then sucked into the mantle by subducting tectonic plates.

Effectively, in many locations, Earth buried the evidence of about a fifth of its geological history, the team argued this week in the Proceedings of the National Academy of Sciences. The notion is elegant but provocative, and the authors themselves predict that some geoscientists will express skepticism. "I think, though, we have extraordinary evidence to support that extraordinary claim," says study leader C. Brenhin Keller, a postdoctoral fellow at the Berkeley Geochronology Center.

Businesses

Be it Smartwatches or Smart Speakers, It's Never Been Easier To Make Gadgets. But Only the Big Players Have the Muscle To Survive. (theguardian.com) 116

Why would you go with the smaller brand, faced with those offerings from tech's behemoths? Or, at the previous displays, why not just buy the cheaper models? Charles Arthur, writing for The Guardian: That's the challenge for many consumer electronics firms. Not how to make things, or how to distribute them and get them in front of potential buyers. It's how to make a profit. Out of Fitbit, GoPro, Parrot and Sonos -- each operating in different parts of the consumer electronics business -- only the latter made an operating profit in the last financial quarter, and all four have made a cumulative operating loss so far this year. Making a profit in hardware has always been difficult. By contrast, in software, all the significant costs are in development; reproduction and distribution are trivial -- a digital copy is perfect, and the internet will transport 0s and 1s anywhere, effectively for free. If your product is free and ad-supported, you don't even need anti-piracy measures; you want people to copy it and use it. Software companies typically have gross margins of around 80%, and operating profits of 40% or so.

In hardware, though, the world now seems full of companies living by the Amazon founder Jeff Bezos's mantra that "your [profit] margin is my opportunity". Indeed, Amazon is one of the reasons why long-term profit is more elusive: it provides a means for small startups to distribute products without formal warehousing arrangements, and compete with bigger businesses at lower cost. That, together with the rise of a gigantic electronic manufacturing capability in the southern Chinese city of Shenzhen, about an hour's drive north of Hong Kong, has made the modern hardware business one where only those with huge reserves of capital and brand recognition can hope to thrive.

United States

The Commerce Department is Considering National Security Restrictions on AI (nytimes.com) 72

An anonymous reader shares a report: A common belief among tech industry insiders is that Silicon Valley has dominated the internet because much of the worldwide network was designed and built by Americans. Now a growing number of those insiders are worried that proposed export restrictions could short-circuit the pre-eminence of American companies in the next big thing to hit their industry, artificial intelligence.

In November, the Commerce Department released a list of technologies, including artificial intelligence, that are under consideration for new export rules because of their importance to national security. Technology experts worry that blocking the export of A.I. to other countries, or tying it up in red tape, will help A.I. industries flourish in those nations -- China, in particular -- and compete with American companies.

"The number of cases where exports can be sufficiently controlled are very, very, very small, and the chance of making an error is quite large," said Jack Clark, head of policy at OpenAI, an artificial intelligence lab in San Francisco. "If this goes wrong, it could do real damage to the A.I. community." The export controls are being considered as the United States and China engage in a trade war. The Trump administration has been critical of the way China negotiates deals with American companies, often requiring the transfer of technology to Chinese partners as the cost of doing business in the country. And federal officials are making an aggressive argument that China has stolen American technology through hacking and industrial espionage.

Transportation

Why the West Coast Is Suddenly Beating the East Coast on Transportation (nytimes.com) 273

The subways on the East Coast that allowed New York, Washington and Boston to thrive are showing their age and suffering from years of neglect, while cities on the West Coast are moving quickly to expand and improve their networks. From a report: The Los Angeles area, the ultimate car-centric region with its sprawling freeways, approved a sweeping $120 billion plan to build new train routes and upgrade its buses. Seattle has won accolades for its transit system, where 93 percent of riders report being happy with service -- a feat that seems unimaginable in New York, where subway riders regularly simmer with rage on stalled trains. "It's a tale of two systems," said Robert Puentes, the president of the Eno Center for Transportation, a nonpartisan research center in Washington. "These new ones are growing and haven't started to experience the pains of rehabilitation."

In New York, Polly Trottenberg, New York City's transportation commissioner, returned to a laundry list of messes: a subway crisis, buses that move at a snail's pace, the looming shutdown of the L train between Manhattan and Brooklyn, and the rebuilding of the dilapidated Brooklyn-Queens Expressway. "There is a political will to invest in expansion" on the West Coast, Ms. Trottenberg said in an interview, though she noted that New York's system was still the country's largest by far. Its daily subway and bus ridership of nearly 8 million dwarfs Los Angeles's 1.2 million riders. Still, transit systems on the East Coast are losing ridership. New York's subway has not expanded in decades, besides a handful of new stations in Manhattan -- one on the Far West Side and three on the Upper East Side.

Privacy

Popular App Weather Forecast Collects Too Much User Data and is Attempting To Subscribe Some Users To Paid Services Without Permission (wsj.com) 57

A popular weather app built by a Chinese tech conglomerate has been collecting an unusual amount of data from smartphones around the world and attempting to subscribe some users to paid services without permission, according to a London-based security firm's research. From a report: The free app, one of the world's most-downloaded weather apps in Google's Play store, is from TCL Communication Technology Holdings, of Shenzhen, China. TCL makes Alcatel- and BlackBerry -branded phones, while a sister company makes televisions. The app, called "Weather Forecast --World Weather Accurate Radar," collects data including smartphone users' geographic locations, email addresses and unique 15-digit International Mobile Equipment Identity (IMEI) numbers on TCL servers in China, according to Upstream Systems, the mobile commerce and security firm that found the activity. Until last month, the app was known as "Weather -- Simple weather forecast."

The weather app also has attempted to surreptitiously subscribe more than 100,000 users of its low-cost Alcatel smartphones in countries such as Brazil, Malaysia and Nigeria to paid virtual-reality services, according to Upstream Systems. The security firm, which discovered the activity as part of its work for mobile operators, said users would have been billed more than $1.5 million had it not blocked the attempts.

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