Wednesday, October 3, 2012

Motorola surprisingly withdraws Apple complaint from ITC


Motorola surprisingly withdraws Apple complaint from ITC

The Google unit had filed the complaint in August over seven patents. There still remains another complaint with the ITC.
Motorola Mobility, a unit of Google, yesterday withdrew a complaint against Apple -- its second one -- from the U.S. International Trade Commission.
The complaint involved the infringement of seven non-essential standards patents that Motorola accused Apple of violating, according to Foss Patents, which first spotted the move.
It's a surprise move given the trend of escalating legal battles between Apple and its various opponents, from Samsung Electronics to Motorola.


What's surprising is Motorola just filed the complaint in August, and there isn't any reason given for the withdrawal. Two weeks ago, the ITC said it would look at the complaint.
A withdrawal could signal a possible resolution to the conflict between Motorola and Apple, but Foss Patent's Florian Mueller, a legal consultant, noted that the filling, which became public today, explicitly states that there are no agreements between the two parties.
Mueller floated the idea that Motorola withdrew its complaint after Administrative Law Judge Theodore Essex began looking at the case, noting that Judge Essex often puts up a high bar for complaints.
"Maybe it's not just a coincidence that Motorola withdrew its complaint shortly after his appointment," he said in his blog.
CNET has contacted Motorola and Apple for comment. We'll update the story when the companies respond.
Apple remains embroiled in legal entanglements with several Android vendors. Samsung, for instance, filed its lawsuit against Apple to include the iPhone 5 in its complaint, while a judge dismissed a U.S. ban on the Galaxy Tab 10.1.

T-Mobile parent in talks for deal with MetroPCS


T-Mobile parent in talks for deal with MetroPCS

Deutsche Telekom said it is considering a combination between T-Mobile and the prepaid carrier. And MetroPCS also confirmed that the talks are ongoing.
Could MetroPCS and T-Mobile merge?
(Credit: Greg Sandoval/CNET )
T-Mobile USA's parent, Deutsche Telekom AG, and MetroPCS confirmed today that they are in talks to combine operations.
Both companies sent out statements confirming recent speculation that a potential deal was brewing. Here are their respective comments:
Deutsche Telekom:

Deutsche Telekom is holding talks with the listed company MetroPCS with the aim of operating its subsidiary T-Mobile USA and MetroPCS within one company in which Deutsche Telekom would hold the majority of shares.
The talks are at a stage where significant issues have not yet been finalized, contracts have not yet been signed and the conclusion of the transaction is still not certain. The Board of Management and Supervisory Board of Deutsche Telekom have therefore not yet taken the resolutions necessary for such a transaction.

And MetroPCS:

MetroPCS today confirmed that it is in discussions with Deutsche Telekom regarding an agreement to combine T-Mobile USA and MetroPCS. There can be no assurances that any transaction will result from these discussions, and the company does not intend to comment further unless and until an agreement is reached.

With the growing dominance in the U.S. of the two largest wireless providers in AT&T and Verizon Wireless, the industry is ripe for consolidation. Where AT&T failed to buy T-Mobile, DT is hoping it will have more success buying MetroPCS and merging the two U.S. operations together.


T-Mobile, a national player, would benefit from the subscribers and spectrum from regional prepaid wireless provider MetroPCS. T-Mobile's increasing move into the prepaid business means a lot easier transition if the two businesses combined.
Sprint Nextel had reportedly attempted to buy MetroPCS in an attempt to increase its size. The carriers operate in a business where size matters, and the larger the company, the bigger the advantages.
DT and MetroPCS, meanwhile, both warned that the talks were still early and that no contracts have been signed.
Because of size of both carriers -- T-Mobile being the fourth-largest national carrier, and MetroPCS just a regional company -- any potential deal would likely see a smooth regulatory approval process relative to recent deals such as the failed AT&T/T-Mobile merger attempt and Verizon Wireless's purchase of spectrum from the cable providers.
There are other complications, however, to a potential deal. MetroPCS runs off of a network technology called CDMA, which is incompatible with T-Mobile's GSM-based network. MetroPCS has migrated to 4G LTE in some of its markets, but still has a CDMA backbone. T-Mobile, meanwhile, is looking to upgrade to 4G LTE next year, with DT promising to invest $4 billion over the next three years on network upgrades.
T-Mobile recently raised $2.4 billion by leasing the rights to its cellular towers to cell tower operator Crown Castle

Report: 3D-printed handgun project faces setback with revoked printer lease


Report: 3D-printed handgun project faces setback with revoked printer lease

Wired reports 3D printer manufacturer Stratasys has nullified a lease agreement with Defense Distributed.
The Stratasys uPrint SE 3D printer briefly rented by Cody Wilson and Defense Distributed.
The Stratasys uPrint SE 3D printer briefly rented by Cody Wilson and Defense Distributed.
(Credit: Cody Wilson )
When I last spoke with Cody Wilson, Defense Distributed had just met its $20,000 funding goal, and he had taken delivery of his Stratasys uPrint SE 3D printer. Fast forward nine days and the outlook for his 3D printed firearm project looks less positive.
As reported here in September, Defense Distributed, a group headed by University of Texas graduate student Wilson, began navigating the uncharted material and regulatory waters around designing a gun to be printed from common plastic on a relatively low-cost 3D printer like the MakerBot Replicator.
Now, Wired's Robert Beckhusen reports that Stratasys has voided the lease for the printer Defense Distributed had rented, and sent representatives to physically reclaim it last week.
The Stratasys uPrint SE 3D printer rented by Wilson and Defense Distributed.
The Stratasys uPrint SE 3D printer rented by Wilson and Defense Distributed.
(Credit: Cody Wilson )
Further, Beckhusen reports that a visit to the Austin, TX branch of the ATF turned into an unexpected questioning session for Wilson when he went down to investigate the legal requirements of the Defense Distributed project.
Beckhusen also writes that, according to Wilson, "the ATF believes he's not broken any laws, and that the agency believes 3-D printed guns fall into a regulatory gray area, but that he still needs to get licensed if he's to manufacture a weapon.
That runs contrary to the advice I received from ATF's national branch last month, when a spokesperson told me that you don't need to register as a firearms manufacturer if, like Wilson, you have no intent to sell.
"I was annoyed at first," Wilson told me over email, "but this has only excited our network and contacts. Two steps forward. Getting another printer will be easy. Incorporating and filling out a bunch of federal paperwork is what's regrettable."

Photos show purported iPad Mini parts -- black and white


Photos show purported iPad Mini parts -- black and white

New shots of parts for a smaller iPad have popped up on the Web, suggesting the device is already being manufactured.
The purported rear casing of Apple's iPad mini.
The purported rear casing of Apple's iPad mini.
(Credit: Ukrainianiphone.com )
With a debut of a miniaturized version of the iPad possibly just two weeks away, the rumors are coming hot and heavy. The latest: purported shots of parts, from displays, to rear casings and screen covers.
Apple news site UkrainianiPhone (via Gizmodo) today posts photos of these parts, which the outlet claims were snapped in a Chinese factory.
Among the changes suggested by the four shots are that the unit sports a Nano-SIM tray for cellular connectivity, a Lightning connector (instead of a 30-pin adapter), a microphone jack in the same corner as current iPads, and a plastic element along the top to let wireless signals pass through a black anodized aluminum back. The display itself also appears to have a narrower bezel on the sides, matching up with mock-ups that have appeared over the last month or so.
The photos come just a day after a report that production of the product is under way in Brazil. If that's true, as well as these leaked photos coming from China, it would also lend credibility to an earlier report of Apple tapping both Foxconn and Pegatron -- two separate manufacturers -- to split up production of the device ahead of its launch.
Apple has rumored to be working on a smaller version of the iPad for months, with rumors of such a device dating back to before the first model was announced. A report yesterday suggested Apple plans to send out press invites to event where the device will be formally unveiled as soon as next week.

Facebook: We're 'very focused' on putting ads in newsfeeds


Facebook: We're 'very focused' on putting ads in newsfeeds

COO Sheryl Sandberg, speaking with Marc Andreessen during a Charlie Rose interview, also said employees have shrugged off Facebook's stock-price collapse.
Charlie Rose interviews Facebook COO Sheryl Sandberg and Marc Andreessen at an advertising conference in New York.
(Credit: Shara Tibken/CNET )
NEW YORK -- Facebook Chief Operating Officer Sheryl Sandberg and investor Marc Andreessen again made the case for the social networking giant's opportunity in the mobile market, saying advertising on smartphones and tablets is the company's primary focus.
The two, speaking today during an interview with Charlie Rose at an advertising conference in New York, dismissed concerns that Facebook is struggling and said it's making strides in mobile.
"This is word of mouth at scale, and it's made possible through real identity ... on mobile devices we haven't seen before," Sandberg said. "Mobile is a huge opportunity for Facebook."
The big question, she noted, is what format mobile ads will take. Facebook, for one, is "very focused" on putting ads into users' news feeds in a way that gives marketers a "great return" and continues to drive engagement. And Facebook sees big opportunity in helping users find restaurants, services and other items through their friends.

Sandberg, asked if monetization is going slower than expected, said that "it's an evolution." And she said that Facebook employees, while "surprised and disappointed" by IPO reaction, don't let it impact their work performance.
"People think all of Facebook must be in tatters... but we're pretty good at moving forward," Sandberg said.
She declined to comment about what went wrong with the IPO and dismissed rumors she might leave Facebook, saying she loves her job and is staying.
Facebook has gone through rocky times since its IPO in May. The social networking giant's stock has tumbled about 42% from its $38 listing price amid persistent questions about its ability to grow and to make money on mobile devices. Chief among the worries is doubt about Facebook's mobile strategy, as well as concern about a slowdown in advertising.
There's no doubt that mobile is Facebook's future, with a significant number of its users accessing the site via smartphones or tablets. While taking steps to expand in mobility, such as rolling out Sponsored Stories for smartphones, Facebook still has a long way to go to squeeze money out of its growing mobile user base.
Andreessen, meanwhile, said successful companies tend to delay gratification, focusing on making the best products for their customers and then figuring out how to make money. He noted MySpace ultimately failed because it focused too much on making money while underinvesting in R&D.
"You want these companies taking risks," Andreessen said. "When tech companies turn conservative and stop making bets, that's when they go completely sideways."
His firm Andreessen Horowitz was an investor in Facebook, as well as other companies like Twitter, LinkedIn and Groupon.
Andreessen noted that he was dodging questions about IPOs "because people will get mad." The legendary Silicon Valley entrepreneur and venture capitalist noted that there's not "even any tiny little trace" of a tech bubble at this time.
Andreessen also said the original reason Google's Android operating system had momentum was because Apple priced its products too high. But Apple keeps driving down smartphone pricing by offering older model iPhone at discounted rates, he said.
"They're going for market share in a way I don't think they historically have been," Andreessen said.
And Andreessen said the future is for all media, such as videos and videogames, to move online and for a person's smartphone to become the control point for all other devices. He cited Apple's AirPlay as an indication of where technology is going. And Andreessen also expects a new wave of wearable consumer devices.
"The smartphone is the hub for those devices," he said

iPhone 5 or Samsung Galaxy S3? And why Sprint LTE isn't enough


iPhone 5 or Samsung Galaxy S3? And why Sprint LTE isn't enough

Ask Maggie offers advice on choosing between the two hottest smartphones on the market: iPhone 5 or Galaxy S3. And she explains why she didn't consider Sprint's iPhone 5.
There are so many factors to consider when buying a new smartphone and choosing a wireless service. The truth is that what's good for one consumer may not satisfy the needs of another.
In this edition of Ask Maggie, I offer some buying advice for a consumer considering the iPhone 5 and the Samsung Galaxy S3. It's not an easy decision. These devices are both excellent choices. I also explain to a different reader why I didn't even consider Sprint's network when buying my iPhone 5. And I talk about the importance of network coverage in making that final decision.
Samsung Galaxy S3 vs. iPhone 5
Dear Maggie,
I have a question about smart phone selection. I've waited a long time to upgrade my Blackberry 9700 to an iPhone. (My wife and I are AT&T customers. I have an unlimited data plan. We both use Windows-based computers.) Last year when the iPhone 4s came out, I was disappointed that it wasn't the iPhone 5 with 4G LTE so I waited.

In the meantime, the Samsung Galaxy S3 arrived. Still, I went ahead and ordered the iPhone 5. I'm waiting for it to arrive, but I'm having second thoughts. I don't make or get many calls. I use the phone a lot more for productivity, travel, Internet access and entertainment. Because of this, I was really hoping the iPhone 5 screen would be bigger than it turned out to be.
The Samsung Galaxy S3 has a much larger display, has more configurability and expandability and seems to have most (if not all) of what I want. It is not straight-jacketed by iTunes. (A real plus in my book.) And, because of my Blackberry, I already have microUSB cables and chargers.
Still, as compelling as it might be on that side, there are some reasons that I am tending to stay with my iPhone choice. I have an iPad and I know I can keep many (if not all) of the same apps. This also means I already understand the user interface. Many of my relations (wife, kids, sister) all have iPhones. Since I work in IT and am reasonably tech savvy, I am not put off too much about learning Android. But I feel less confident about the other issues. Given my situation, are there enough compelling reasons to stay with iOS or would going to the Samsung Galaxy S3 be a better choice?
Thanks,
Tim

Dear Tim,
This is a tough decision. The Samsung Galaxy S3 is a terrific phone. And so is the Apple iPhone 5. In fact, CNET's Brian Tong said it was impossible to go wrong with either smartphone. In CNET's Prizefight between the two phones, the iPhone 5 only slightly edged out the Samsung Galaxy S3.
Apple iPhone 5 vs. Samsung Galaxy SIII
It's the battle you've been waiting for between the iPhone 5 and the Galaxy S3 before the Jelly Bean update. How does the cream of the crop match up? Let's get it on!
But there are plenty of reasons to choose the Samsung Galaxy S3 instead of the iPhone 5. For example, the market research firm IHS iSuppli just published a study in which it said that the display on the Samsung Galaxy S3 is superior to the new iPhone 5's display. According to the report, The Galaxy S3's display, which is just 1.1 millimeters thick, offers the full color gamut of the National Television System Committee or NTSC standard. By comparison, the iPhone 5, which measures 1.5 millimeters thick, offers only 72 percent of the standard color gamut.
Some people say this doesn't necessarily mean that the screen is really any better. CNET's own Jessica Dolcourt did a round up of the best screens on the market and she ranks the Samsung Galaxy SIII at the bottom, while giving high marks to the iPhone 5. You may need to check out the displays for yourself to determine which one is best for you.
Keep in mind, Android phones are more configurable than iOS devices. And that's still the case when you look at the iPhone 5 compared to the Samsung Galaxy S3. This means you'll have a lot more flexibility in customizing the Samsung Galaxy SIII than you would the iPhone 5. Given that you are an IT guy, I imagine you aren't afraid to play around with your device. My guess is you won't have any trouble adapting to the Samsung Galaxy SIII. The Ice Cream Sandwich user interface is not that complicated to use. And the interface will only get better once it's upgraded to Android 4.1 Jelly Bean.
I also agree that it's very nice to be able to use any microUSB cable and charger with your smartphone. I've had a lot of devices pass through my home over the years, and it is nice when I don't have to hunt through my drawer to find just the right charger for each device. It also means that I can leave chargers in different places. I have one that I keep in my bedroom. Another I have in the living room, and a third one I leave at the office. This way, I'm never without a charger when the battery goes low.
I used to be able to do the same thing with my iPhone 3GS, since it used the same charger as my iPod. (Plus I had previously owned an iPhone 3G and kept that charger.) But the fact that Apple has changed the charging input in this version of the iPhone and the fact that it's not a standard microUSB is a pain in the butt. It doesn't seem like a big deal, but I think you're smart to consider this practical aspect when deciding which device to get, especially if you're already on the fence.
It sounds like you aren't necessarily a fan of iTunes, which again will give you more freedom to go with an alternative to the iPhone. When I was deciding which new smartphone to get, I was also deciding between the iPhone 5 and the Samsung Galaxy S3.
As I've mentioned in this column previously, I was sucked into iTunes very early. All of my music, which I like to listen to everyday on my commute to and from work, is in iTunes. It's been too much of a pain to convert it over to the Samsung Galaxy S2 I've been using for six months, so I've been musicless on my smartphone since my old iPhone died. So for me, I want iTunes back on my device. And that's why I decided on the iPhone 5.
But if you're not a fan of iTunes and you aren't locked into the software, then by all means go Android. As for your concerns over sharing apps with your iPad, it may not be as big of a deal as you might think. You are correct that some of the apps you have for your iPad will work on your iPhone 5. But not of all of them will.
And depending on the apps you use, you can also download those same apps on the Galaxy S3. If many of the apps you use are free, it shouldn't be a big deal. Re-downloading apps isn't that cumbersome. For example, apps like the Internet radio service Pandora or e-reader app Kindle are free and you can access your same account regardless of whether you're on your Android device or an iOS device.
Of course, things get trickier when you have apps on your device that cost money. But the good news is that many of the apps that you have pay for on an iOS device are free on an Android product. There are some apps that are not offered on both platforms. But the most popular apps will likely be available to you on Android.
You may even discover some that aren't available for iOS. For example, Google Maps and Navigation are superior to Apple's new mapping service. And I'd argue that mapping and navigation are probably more useful than many of the other apps on a smartphone. So even though app consistency might be an issue, I don't think it should be a deal-breaker for you.
Then there's that other issue you brought up about your friends and family also using iPhones. Should you get an iPhone 5, you can text other iPhone users via iMessage and automatically bypass the text messaging service from your carrier. That is a nice feature. But you can download other apps on your Android device that allow you to do the same thing. Again, I don't think that should be a deal-breaker for you. It's a minor benefit.
So what should you do? My advice to you is to check out the iPhone 5 since you've already ordered it, and it's on the way to your house. In the meantime, stop into an AT&T store and check out the Samsung Galaxy S3. See how you feel about the look and feel of the devices once you have them in your hands.
But honestly, based on what you've shared about your preferences and your needs, I don't see any compelling reasons for you to stay with the iPhone 5. Either way, I think you will be much happier than you are now with your current BlackBerry. I hope this advice was helpful, and good luck!
Why no love for Sprint's LTE for the iPhone 5?
Dear Maggie,
In your column about which iPhone to buy, you mentioned the options from AT&T and Verizon, but left out Sprint. I'm on AT&T's unlimited plan and do a fair amount of streaming audio. Is Sprint really not a viable option for 4G LTE? Is their system really not that good? I'm leaning toward Verizon, but hate the thought of having to keep track of data usage and the extra cost. Your columns are great!
Thanks for your help!
Frugal Consumer
Dear Frugal Consumer,
Thanks for bringing this up. I have nothing against Sprint. And in fact, I would love to see strong competition in the mobile market. It would be wonderful if consumers didn't even need to consider network coverage or network reliability when deciding which carrier to choose. But the truth is that those things still matter. And as wireless operators transition from 3G to 4G service, these issues will become even more of a deciding factor for potential subscribers. Personally, I'm crossing my fingers that Sprint, T-Mobile and some of the other smaller providers on the market can really give AT&T and Verizon a run for their money.
The reason I didn't consider Sprint for the iPhone 5 is because the carrier is woefully behind AT&T and Verizon in terms of its LTE buildout. Currently, the carrier only offers LTE in 19 cities, most of which are in Texas, Kansas and Georgia. If you live in those areas and you don't travel much, then Sprint's coverage might be fine. But if you are like me and you don't live in any of these areas and you travel often and even frequent places where Sprint's regular 3G coverage is spotty at best, then Sprint isn't a great choice.
As I have said many times in this column, network coverage is the most important factor that you should look for when considering a wireless operator. Earlier this month, Sprint announced that it will be rolling out LTE in more than 100 cities where it already offers 3G service "in the coming months." Cities included in this list are Boston, Chicago, Los Angeles, New York, Washington D.C., and cities in Puerto Rico. This is great news. But unfortunately, I don't think it's enough to satisfy my needs.
I live in New York City, which has historically gotten great Sprint coverage, but I spend a lot of time at my family's house in Delaware. Even though Sprint's coverage map says it offers service in this area and even though it has a retail store just outside of town, the service is terrible in the town where my father lives. I dropped Sprint a long time ago because of these issues. And despite my best efforts to get Sprint executives to do something about the coverage in my favorite little piece of the world, the company hasn't improved its coverage there.
For me, the lack of coverage in a town I visit often is a deal breaker. That said, there are plenty of people who live, work, and visit areas where Sprint has great coverage. And those people should definitely consider Sprint a possible alternative.
The reality is that AT&T and Verizon Wireless have the footprint that I need. And I chose Verizon because it is the furthest in its LTE deployment. As I mentioned in my previous article, Verizon covered 230 million potential customers in 337 markets with its LTE network at the end of the second quarter of 2012. This is more than all the other carriers building LTE combined.
By the end of the year, Verizon expects to cover about 260 million people in more than 400 markets. By contrast, AT&T's LTE network covers only about 80 million people in the U.S. today, and it will add only another 70 million by the end of the year.
Sprint is working hard to expand its network. And in another year, maybe its network will look more attractive compared to the other carriers. The company has said it will serve more than 250 million potential customers with LTE by the end of 2013.
But I'm looking to buy an iPhone 5 today. And I don't want to wait two months or two years for my carrier to expand its network to support the faster network speeds I need today. The contract I sign for my new iPhone 5 will last two years. If Sprint is able to catch up and provide a service that is as good or better than Verizon and costs less, then I will definitely consider switching. Until then, I plan to suck it up and pay Verizon more than I'd like to spend on wireless service, because I know it's going to provide the fastest and most reliable LTE service for me where I need it.
This issue of network coverage is crucial to keeping competition alive in the wireless market. And I'd argue that this is a great example of why consumers need to pay attention to what's happening at the FCC when it comes to policies around wireless spectrum and data roaming.
It's no coincidence that AT&T and Verizon Wireless own most of the lower frequency wireless spectrum and also have the largest network footprints in the country. Lower frequency spectrum can transmit data over longer distances and penetrate through more obstacles.
This means that carriers using lower frequency spectrum can use fewer towers when building their networks to cover the same area. That saves them money. And because the spectrum can penetrate through buildings and other obstacles better, lower frequency spectrum can provide better in-building coverage. As a result, when you look at how carriers value their spectrum assets, there is almost a two-to-one difference in the book value of lower frequency spectrum (holdings below 1GHz) compared to higher frequency spectrum (holdings above 1GHz.)
AT&T and Verizon Wireless are well positioned with sub-1GHz wireless spectrum. By contrast, Sprint and T-Mobile are not in a great position here. High frequency spectrum is not worthless, by any means. It can pack in more capacity, but because it travels over shorter distances, carriers need to put the towers closer together. This makes building a network more costly. And for this reason, carriers with a lot of higher frequency spectrum generally serve densely populated areas like cities more easily than suburbs and rural communities.
The FCC is preparing an auction for 2014 in which it will auction off lower frequency spectrum from broadcast TV stations. The big question is whether carriers such as Sprint, T-Mobile and even smaller players like Leap Wireless, which owns the Cricket brand, will get some of this lower frequency spectrum. If AT&T and Verizon Wireless once again end up with the bulk of it, it will make it difficult for smaller players like Sprint or T-Mobile to compete.
The rules and policies around this auction are being discussed now. Just last week, the FCC opened the issue for public comment.
Roaming agreements with larger operators could help smaller players fill these coverage gaps. But big carriers, such as Verizon, have resisted an FCC rule requiring them to offer reasonable roaming rates to competitors for data service. Verizon is even suing the FCC to block the rules. That said, Sprint and T-Mobile have joined the Competitive Carrier Association, a group formerly known as the Rural Cellular Association. This group represents more than 100 smaller regional carriers. So there's a chance that Sprint and T-Mobile could work with these carriers to extend their footprints to more rural areas. And the rural carriers could work with Sprint and T-Mobile for better urban access.
But one thing is clear, network coverage still matters. And unless smaller players are able to cobble together networks of their own or roaming agreements with other carriers, my options and yours will continue to be limited mostly to AT&T and Verizon.
Ask Maggie is an advice column that answers readers' wireless and broadband questions. The column now appears twice a week on CNET, offering readers a double dosage of Ask Maggie's advice. If you have a question, I'd love to hear from you. Please send me an e-mail at maggie dot reardon at cbs dot com. And please put "Ask Maggie" in the subject header. You can also follow me on Facebook on my Ask Maggie page

Samsung claims Apple patent verdict tainted by jury foreman


Samsung claims Apple patent verdict tainted by jury foreman

Korean electronics giant argues that the foreman failed to reveal he was once sued by former employer Seagate, a company that Samsung is a major investor in.

Samsung wants Apple's billion-dollar verdict thrown out, arguing it was tainted by the jury foreman's failure to disclose previous litigation with Seagate Technology, a company in which Samsung is a major investor.
Jury foreman Velvin Hogan was asked during jury selection about his involvement in lawsuits and should have revealed to the judge he had been sued by Seagate -- his former employer -- which led to his filing for personal bankruptcy in 1993, Samsung argued in a court filing Tuesday, according to a Bloomberg account.
"Samsung has a substantial strategic relationship with Seagate," the company said in its motion, "which culminated last year in the publicized sale of a division to Seagate in a deal worth $1.375 billion, making Samsung the single largest direct shareholder of Seagate."
The electronics giant is seeking to have dismissed an overwhelmingly one-sided verdict handed down on August 24 by a San Jose, Calif., jury that found Samsung liable for about $1.05 billion in damages arising from software patents on mobile devices.
"Mr. Hogan's failure to disclose the Seagate suit raises issues of bias that Samsung should have been allowed to explore in questioning," Samsung said in a filing.
Samsung had previously argued that interviews given to news organizations by jurors in the landmark case provide evidence of misconduct serious enough to have influenced the verdict.
In an interview with CNET a day after a verdict, juror Manuel Ilagan said that Hogan used his understanding of the process from his own experience with patents to sway the jury. "Hogan was jury foreman," Ilagan said. "He had experience. He owned patents himself...so he took us through his experience. After that it was easier."
Despite juror instructions that jurors must "decide the case solely on the evidence before you," Hogan told Bloomberg TV that "some were not sure of how prior art could either render a patent acceptable or whether it could invalidate it. What we did is we started talking about one... (I) laid it out for them."
CNET has contacted Apple for comment and will update this report when we learn more.
The next hearing in the case is scheduled for December.

Apple may need an iPhone 6 sooner than later


Apple may need an iPhone 6 sooner than later

Apple has limited itself to one screen size for the iPhone 5, but as the expected iPad mini indicates, Apple plans to expand its screen-size options to stay competitive.
Will iPhones and iPad be available in more shapes and sizes?
(Credit: Apple/CNET )
For Apple, the hits keep coming. The company launches a new iPhone and 5 million people snag one over the weekend. An iPad mini, expected to debut later this month, could get into the hands of 10 million users before the end of the year. And this is despite the fact that competitors offer a far broader array of smartphones and tablets, with a price, size and feature set to match the needs of almost any discerning customer.
The extraordinary popularity, and profitability, of Apple's products is in part based on the quality, consistency and simplicity of the offering. Apple avoids the pitfalls of the paradox of choice, a theory by psychologist Barry Schwartz that suggests too much choice makes it difficult to choose at all. No need to choose between Apple model 7844PQC, 6533PHX or the 5055PDQ or decide what operating system you should buy.
You want an iPhone 5? It comes in one size and two colors, with a few options for storage and networking. If you already know how to use an iPhone, this new version won't challenge your skills. How about a tablet? Apple has a model with a 9.7-inch screen and your choice of connectivity options.
Apple doesn't try to offer the most feature-rich or advanced mobile devices available. The way Apple chief designer Sir Jony Ive tells it, "Our goals are very simple -- to design and make better products. If we can't make something that is better, we won't do it."
Bigger than a 4-inch screen is not better for a smartphone. Apple has decided you should be able to operate your phone with one hand, and will only offer you a 4 inch iPhone 5 screen, or its 3.5 inch antecedents, the iPhone 4S and 4. Better is an iPhone 5 that is 18 percent thinner, 20 percent lighter, up to twice as fast and slightly longer than its predecessor, a flawed Map app notwithstanding.
"Most of our competitors are interested in doing something different, or want to appear new -- I think those are completely the wrong goals. A product has to be genuinely better. This requires real discipline, and that's what drives us -- a sincere, genuine appetite to do something that is better," Ive said in an interview with the London Evening Standard.

Whereas Apple offers limited choice, competitors are in the multiple choice business. They offer many more price points and feature options, including a variety of screen sizes, operating systems, cameras, networks and chips. And, they are doing more than just something different or new.
Motorola, for example, recently introduced three new Android phones, including a $99 unit with a 4.3-inch edge-to-edge display, a model with a 4.7-inch HD screen size and one with up to 32 hours of battery life. Samsung says it has sold 20 million of its Android-based Galaxy S3, with a 4.8-inch HD Super AMOLED display at 1,280x720-pixel resolution, in its first 100 days on the market. 





There is a payoff in offering a broader selection of mobile devices for Apple's competitors. Google's Android platform dominates the market, with more than 60 percent share, compared to less than 20 for Apple. As RIM's Blackberry and Nokia's Symbian platforms decline, Microsoft is putting its prodigious marketing muscle behind its Windows 8 platform as an alternative to Apple's iOS and Android. Nokia, Samsung, HTC, Huawei and other will deliver Windows 8 smartphones and tablets following the Oct. 26 launch.
Microsoft's upcoming Surface tablet
Microsoft's upcoming Surface tablet
(Credit: Microsoft )
While the purveyors of choice are largely competing against each other, Apple has been extracting the majority of the profit for mobile devices and apps, making it the most financially valuable company in the world.
Apple prides itself on inventing the future, as it did when it introduced the iPhone and iPad, and famously shuns focus groups in designing its products. "It's unfair to ask people who don't have a sense of the opportunities of tomorrow from the context of today to design," Ive stated.
As the market for mobile devices matures, however, Apple's devotion to its "less is more" and "we know better" product strategy can be counterproductive.
Apple's current smartphone revolves around one-handed usage, and the company will milk the iPhone 5 for profit and market share and hope for a perfectly timed replacement that repeats that formula within a year. But the popularity of larger screens has to be a factor that impacts how long Apple can ride the iPhone 5. If the majority of smartphones sold in 2013 have larger than 4-inch screens, Apple isn't going to miss the market opportunity by sticking too long with its one-handed phone design. 
An iPhone 6 can be "genuinely better," as Ive demands, and available in more than one screen size without making customer choice a maze of options or its supply chain and financial engine less efficient.
Apple's competition is catching up (Credit: Pew Research Center)
It's likely that the Microsoft Surface and the parade of "convertible" or hybrid tablets coming out for Windows 8 is being closely watched by Apple, despite Tim Cook's statement, "You can converge a toaster and a refrigerator, but those things are probably not going be pleasing to the user."
If those hybrids start to gain momentum, Cook may reconsider the idea of perfecting an "iPadbook" that combines the best of the Macbook Air and iPad.
There are signs that Apple is more than ready to adapt and follow the pack with the rumored introduction of an 7.85 inch iPad mini later this month. Apple's has good reason to deliver a holiday iPad mini, given that its hold on the tablet market has slipped from a market share of over 80 percent to a still impressive 52 percent in the last year, according a Pew Research Center survey.  An iPad mini would allow the company to soak up some of the demand created by Google, Amazon and Barnes & Noble for smaller, cheaper tablets.
The majority of the two billion people online are not members of the smartphone or tablet tribe. Apple and its competitors have a massive opportunity ahead to develop products for an increasingly mobile and digital population. Apple isn't assuming that its brand, design sensibilities and nearly 400 stores are sufficient to insulate it from dynamic market changes. The expected iPad mini is a sign that Apple is beginning to think different, and an iPhone 6 cannot be too far behind. 

Tuesday, October 2, 2012

Skilled Work, Without the Worker

Skilled Work, Without the Worker
Paul Sakuma/Associated Press
While the many robots in auto factories typically perform only one function, in the new Tesla factory in Fremont, Calif., a robot might do up to four: welding, riveting, bonding and installing a component.
DRACHTEN, the Netherlands — At the Philips Electronics factory on the coast of China, hundreds of workers use their hands and specialized tools to assemble electric shavers. That is the old way.

The iEconomy

Articles and multimedia in this series examine the challenges posed by increasingly globalized high-tech industries.
Multimedia
Lianne Milton for The New York Times
A robot stacking solar panels at a factory in Milpitas, Calif.
At a sister factory here in the Dutch countryside, 128 robot arms do the same work with yoga-like flexibility. Video cameras guide them through feats well beyond the capability of the most dexterous human.
One robot arm endlessly forms three perfect bends in two connector wires and slips them into holes almost too small for the eye to see. The arms work so fast that they must be enclosed in glass cages to prevent the people supervising them from being injured. And they do it all without a coffee break — three shifts a day, 365 days a year.
All told, the factory here has several dozen workers per shift, about a tenth as many as the plant in the Chinese city of Zhuhai.
This is the future. A new wave of robots, far more adept than those now commonly used by automakers and other heavy manufacturers, are replacing workers around the world in both manufacturing and distribution. Factories like the one here in the Netherlands are a striking counterpoint to those used by Apple and other consumer electronics giants, which employ hundreds of thousands of low-skilled workers.
“With these machines, we can make any consumer device in the world,” said Binne Visser, an electrical engineer who manages the Philips assembly line in Drachten.
Many industry executives and technology experts say Philips’s approach is gaining ground on Apple’s. Even as Foxconn, Apple’s iPhone manufacturer, continues to build new plants and hire thousands of additional workers to make smartphones, it plans to install more than a million robots within a few years to supplement its work force in China.
Foxconn has not disclosed how many workers will be displaced or when. But its chairman, Terry Gou, has publicly endorsed a growing use of robots. Speaking of his more than one million employees worldwide, he said in January, according to the official Xinhua news agency: “As human beings are also animals, to manage one million animals gives me a headache.”
The falling costs and growing sophistication of robots have touched off a renewed debate among economists and technologists over how quickly jobs will be lost. This year, Erik Brynjolfsson and Andrew McAfee, economists at the Massachusetts Institute of Technology, made the case for a rapid transformation. “The pace and scale of this encroachment into human skills is relatively recent and has profound economic implications,” they wrote in their book, “Race Against the Machine.”
In their minds, the advent of low-cost automation foretells changes on the scale of the revolution in agricultural technology over the last century, when farming employment in the United States fell from 40 percent of the work force to about 2 percent today. The analogy is not only to the industrialization of agriculture but also to the electrification of manufacturing in the past century, Mr. McAfee argues.
“At what point does the chain saw replace Paul Bunyan?” asked Mike Dennison, an executive at Flextronics, a manufacturer of consumer electronics products that is based in Silicon Valley and is increasingly automating assembly work. “There’s always a price point, and we’re very close to that point.”
But Bran Ferren, a veteran roboticist and industrial product designer at Applied Minds in Glendale, Calif., argues that there are still steep obstacles that have made the dream of the universal assembly robot elusive. “I had an early naïveté about universal robots that could just do anything,” he said. “You have to have people around anyway. And people are pretty good at figuring out, how do I wiggle the radiator in or slip the hose on? And these things are still hard for robots to do.”
Beyond the technical challenges lies resistance from unionized workers and communities worried about jobs. The ascension of robots may mean fewer jobs are created in this country, even though rising labor and transportation costs in Asia and fears of intellectual property theft are now bringing some work back to the West.
Take the cavernous solar-panel factory run by Flextronics in Milpitas, south of San Francisco. A large banner proudly proclaims “Bringing Jobs & Manufacturing Back to California!” (Right now China makes a large share of the solar panels used in this country and is automating its own industry.)
Yet in the state-of-the-art plant, where the assembly line runs 24 hours a day, seven days a week, there are robots everywhere and few human workers. All of the heavy lifting and almost all of the precise work is done by robots that string together solar cells and seal them under glass. The human workers do things like trimming excess material, threading wires and screwing a handful of fasteners into a simple frame for each panel.

The iPhone 5 Scores Well, With a Quibble

The iPhone 5 Scores Well, With a Quibble
Justin Sullivan/Getty Images
Apple announced the iPhone 5, the latest version of its smartphone, at an event in San Francisco last week.
If you were taking a college course called iPhone 101, your professor might identify three factors that have made Apple’s smartphone a mega-success.
Peter DaSilva for The New York Times
The iPhone 5, top, and iPhone 4S. The iPhone 5’s smaller connector does not fit existing accessories, docks or chargers.
First, design. A single company, known for its obsession over details, produces both the hardware and the software. The result is a single, coherently designed whole.
Second, superior components. As the world’s largest tech company, Apple can call the shots with its part suppliers. It can often incorporate new technologies — scratch-resistant Gorilla glass, say, or the supersharp Retina screen — before its rivals can.
Third, compatibility. The iPhone’s ubiquity has led to a universe of accessories that fit it. Walk into a hotel room, and there’s probably an iPhone connector built into the alarm clock.
If you had to write a term paper for this course, you might open with this argument: that in creating the new iPhone 5 ($200 with contract), Apple strengthened its first two advantages — but handed its rivals the third one on a silver platter.
Let’s start with design. The new phone, in all black or white, is beautiful. Especially the black one, whose gleaming, black-on-black, glass-and-aluminum body carries the design cues of a Stealth bomber. The rumors ran rampant that the iPhone 5 would have a larger screen. Would it be huge, like many Android phones? Those giant screens are thudding slabs in your pocket, but they’re fantastic for maps, books, Web sites, photos and movies.
As it turns out, the new iPhone’s updated footprint (handprint?) is nothing like the Imax size of its rivals. It’s the same 2.3 inches wide, but its screen has grown taller by half an inch — 176 very tiny pixels.
It’s a nice but not life-changing change. You gain an extra row of icons on the Home screen, more messages in e-mail lists, wider keyboard keys in landscape mode and a more expansive view of all the other built-in apps. (Non-Apple apps can be written to exploit the bigger screen. Until then, they sit in the center of the larger screen, flanked by unnoticeable slim black bars.)
At 0.3 inch, the phone is thinner than before, startlingly so — the thinnest in the world, Apple says. It’s also lighter, just under four ounces; it disappears completely in your pocket. This iPhone is so light, tall and flat, it’s well on its way to becoming a bookmark.
Second advantage: components. There’s no breakthrough feature this time, no Retina screen or Siri. (Thought recognition will have to wait for the iPhone 13.)
Even so, nearly every feature has been upgraded, with a focus on what counts: screen, sound, camera, speed.
The iPhone 5 is now a 4G LTE phone, meaning that in certain lucky cities, you get wicked-fast Internet connections. (Verizon has by far the most LTE cities, with AT&T a distant second and Sprint at the rear. Here’s a cool coverage comparison map: j.mp/V5wEwN.)
The phone itself runs faster, too. Its new processor runs twice as fast, says Apple. Few people complained about the old phone’s speed, but this one certainly zips.
The screen now has better color reproduction. The front-facing camera captures high-definition video now (720p). The battery offers the same talk time as before (eight hours), but adds two more hours of Web browsing (eight hours), even on LTE networks. In practical terms, you encounter fewer days when the battery dies by dinnertime — a frequent occurrence with 4G phones.
The camera is among the best ever put into a phone. Its lowlight shots blow away the same efforts from an iPhone 4S. Its shot-to-shot times have been improved by 40 percent. And you can take stills even while recording video (1080p hi-def, of course).
So far, so good. But now, the third point, about universal compatibility.
These days, that decade-old iPhone/iPad/iPod charging connector is everywhere: cars, clocks, speakers, docks, even medical devices. But the new iPhone won’t fit any of them.
Apple calls its replacement the Lightning connector. It’s much sturdier than the old jack, and much smaller — 0.31 inch wide instead of 0.83. And there’s no right side up — you can insert it either way. It clicks satisfyingly into place, yet you can remove it easily. It’s the very model of a modern major connector.
Well, great. But it doesn’t fit any existing accessories, docks or chargers. Apple sells an adapter plug for $30 (or $40 with an eight-inch cable “tail”). If you have a few accessories, you could easily pay $150 in adapters for a $200 phone. That’s not just a slap in the face to loyal customers — it’s a jab in the eye.
Even with the adapter, not all accessories work with the Lightning, and not all the features of the old connector are available; for example, you can’t send the iPhone’s video out to a TV cable.
Apple says that a change was inevitable — that old connector, after 10 years, desperately needed an update. Still, Apple has just given away one of its greatest competitive advantages.
The phone comes with new software, iOS 6, bristling with large and small improvements — and it’s a free download that also runs on the iPhone 3GS, iPhone 4 or iPhone 4S.

Covering the World of Business, Digital Only

The Media Equation

Covering the World of Business, Digital Only

Daniel Rosenbaum for The New York Times
“I love the romance of print,” said David G. Bradley, owner of Atlantic Media, but it has cost him.
Business titans are generally not prone to self-appraisal, and when they do take stock, it usually begins and ends with a list of their conquests.
David G. Bradley, the owner of Atlantic Media, has never been like that. He built and then sold the Advisory Board and the Corporate Executive Board, two research advisory firms, but he never trumpeted that or his fancy education — he was a Fulbright scholar with a law degree from Georgetown and an M.B.A. from Harvard — as a significant credential.
When I worked for him — briefly — and then covered him, he made an impression because underneath his waspy, patrician manner he had a very practical understanding of his own limitations, and as a result, Mr. Bradley, 59, is a bit of a brain collector, seeking out intellectual talent and listening closely at every turn.
At lunch a few weeks ago, we talked about Quartz, Atlantic’s new, strictly digital play in global media, a site for business news that is making its debut on Monday at qz.com. He was clearly excited about the new enterprise, but Mr. Bradley spoke candidly about his costly education in the economics of publishing.
“It was expensive and painful,” he said. “I clearly didn’t know what I was getting into.”
After selling his shares in his companies for a reported after-tax gain of $300 million in 1997 and realizing he didn’t have the people’s touch when it came to politics — his first love — he had hoped to buy Newsweek. But that did not work out. So in 1998 he bought The Atlantic Monthly instead, along with National Journal and Government Executive, in part because he wanted to be a Beltway player and in part because he loved the physical aspects of print.
He hoped to turn The Atlantic into a weekly, a glossy artifact that he could proudly display in his office at the Watergate complex, overlooking the Potomac River. But even as a monthly, the economics were baffling.
I called him back after our lunch and he repeated something he had said.
“In a sense, I was born 50 years too late,” he said. “I love the romance of print, but after I took over The Atlantic, I quickly began losing $8 to $10 million a year. It was not a sustainable business, no matter how much I loved being part of it.”
After spending 10 years and $100 million on the Atlantic brand, he realized that making baubles for the coffee table would soon leave him bereft. He hired Justin Smith, the publisher of The Week who had also worked at The Economist, in 2007. Mr. Smith has Mr. Bradley’s polish, but is more ruthless in business matters and less sentimental about print. The pair set about building a ladder out of the hole that the company — and most of print publishing, for that matter — found itself in.
What is the way forward for a 155-year old-magazine that once published Emerson and Longfellow? Digital first and last, with ancillary revenue from conferences. The magazine, edited by James Bennet, is still very much in the middle of the conversation, but these days it is prized mostly for bringing luster to digital assets like TheAtlantic.com, Atlantic Wire, Atlantic Cities, and beginning Monday, Quartz.
Mr. Bradley shared the financials that suggested that revenue at the various Atlantic properties had doubled in the last four years, from $20 million to $40 million, and that the company was profitable for the third year in a row. Digital revenue, he said, now makes up 65 percent of all advertising revenue. (Even though Atlantic Media is a private company, I believe Mr. Bradley; he was always honest when he was losing gobs of money, so I have no reason to doubt him now that he says they are in the black).
“It’s become very, very clear to me that digital trumps print, and that pure digital, without any legacy costs, massively trumps print,” Mr. Bradley said.
At a time when other media properties are leaning hard on subscriptions and paywalls, Mr. Smith believes that a free product, with revenue from sponsorships and events, can avoid the dependency on commodity ads and play in more rarefied, lucrative terrain.
“We don’t want to be the Royal Navy,” he said. “We want to be the pirate ship attacking the Royal Navy. I’m bearish on print, including our own. It is an inexorable trend that has to be met with some very radical changes.”

Disruptions: Will Apple Be the First to Break $1 Trillion?

Disruptions: Will Apple Be the First to Break $1 Trillion?

Timothy D. Cook, Apple's chief executive, at the introduction of the iPhone 5.Eric Risberg/Associated Press Timothy D. Cook, Apple’s chief executive, at the introduction of the iPhone 5.
If Apple continues on its current trajectory, something remarkable might happen on April 9, 2015, at around 11 a.m.
That is, statisticians and investors I’ve spoken with say, a conservative estimate of when Apple could become the first company ever to be valued at $1 trillion. (Yes, you read that correctly: the number one, followed by 12 zeros.)