Android hardware profits tanked in 2014

Ina Fried wrote on Re/code about Android hardware profits tanking in 2014.

While Android continued to gain market share in the global smartphone market, it saw a significant drop on another key metric: Profits.

Analyst Chetan Sharma estimates that global profits in the Android hardware market for 2014 were down by half from the prior year — the first year that there has been any significant drop.

A lot of that is due to the big drop in profits at Samsung, the largest player in the Android market. China’s Xiaomi gained significant market share, but is only modestly profitable thanks to its slim margins. Meanwhile, other players like Sony and Motorola lost money in their Android-based mobile businesses.

The race to the bottom continues.

Is algebra necessary?

John Gruber wrote about NYT’s ironic dismissal of the relevance of algebra.

Michael Cieply, reporting for the NYT:

“The Interview” generated roughly $15 million in online sales and rentals during its first four days of availability, Sony Pictures said on Sunday.

Sony did not say how much of that total represented $6 digital rentals versus $15 sales. The studio said there were about two million transactions over all.


Apparently, algebra is necessary for New York Times reporters and editors, because if they had a basic grasp of it, they’d understand that Sony revealed the exact split between $6 rentals and $15 sales: 1.67 million rentals ($10 million), 0.33 million sales ($5 million).

Apple sued for false advertising of iPhones

WSJ reported about Apple being sued for false advertising of iPhone storage capacity.

Mann said an iPhone 6 Plus with 16 gigabytes of storage can hold only 12.7 gigabytes of photos, songs, apps and other user data. That is 21% less than the advertised 16 gigabytes of storage. For the 16GB iPhone 6, the available storage is 13 gigabytes, according to the filing.

Anyone remember Microsoft’s Surface Pro?

A company spokesperson has confirmed to The Verge that the 64GB edition of Surface Pro will have 23GB of free storage out of the box. The 128GB model will have 83GB of free storage.

They laughed at the DOJ’s e-book antitrust case against Apple

Philip Elmer-DeWitt wrote for Fortune on the United States Department of Justice’s e-book antitrust case against Apple.

Roger Parloff on the hearing:

“Judges Jacobs and Lohier seemed quite concerned that Judge Cote had used the wrong standard, but Jacobs’s qualms clearly went much further—seeming to question the government’s judgment in ever having brought the case. His problem was that Apple was a new entrant that was bringing competition to a market that had been, until then, dominated by a “monopolist,” Amazon. Judge Jacobs also repeatedly referred to Amazon’s $9.99 pricing policy, whereby it sold books at below the wholesale acquisition cost, as “predatory pricing,” and seemed to suggest that Amazon was obviously using it as a means of maintaining its monopoly dominance.”

In fact, the judges seem to think the wrong company prosecuted:

At times Judge Jacobs came close to suggesting that the government had prosecuted the wrong company. At the very least, he said, a horizontal initiative “used to break the hold of a monopolist” ought not be found to be illegal per se. He likened any collusive conduct on the publishers’ part to “mice getting together to go put a bell on the cat.”

Perhaps the DOJ should consider a case against a company that its power to influence the ebook industry.

When Amazon went to war against punctuation

Graeme Reynolds wrote about how Amazon went to war against punctuation.

Apparently Amazon had received a complaint from a reader about the fact that some of the words in the book were hyphenated. And when they ran an automated spell check against the manuscript they found that over 100 words in the 90,000 word novel contained that dreaded little line. This, apparently “significantly impacts the readability of your book” and, as a result “We have suppressed the book because of the combined impact to customers.”

Graeme responded to Amazon explaining how hyphenated words were perfectly acceptable in English.

This was Amazon’s reply:

Hello Graeme,

Thanks for contacting us and giving me the opportunity to help you. I will be more than glad to assist you with your inquiry.

As quality issues with your book negatively affect the reading experience, we have removed your title from sale until these issues are corrected. Books with serious errors that are not corrected after 60 days will have their product detail pages removed from the website. Your book will still appear in your Bookshelf, and you can update it and resubmit it at any time.

Once you correct hyphenated words, please republish your book and make it available for sale.

This incident is another reminder of the power Amazon has over authors and book publishers. They seem to have no qualms about pulling the plug at their whim over such a minor issue, and end up screwing up the livelihood of authors.

Duet: iPad as a secondary Mac display

I previously used Air Display to create a secondary display for my Mac, which is useful when I’m on the road. The only issue I had with it was the fact that they needed to be connected to the same Wi-Fi network and the lag associated with streaming the display over Wi-Fi. This new app called Duet uses the 30-pin/Lightning connector to link your iPad to your Mac, giving you a much smoother experience.

I still feel that the mouse cursor lags slightly, but it’s way more responsive than Air Display and well worth the $10. Seriously, it’s the cost of a fancy Starbucks beverage.

After getting past the price, setting up Duet was painless. I was up and running in five minutes after first downloading the app from the iOS App Store and then installing the free companion app on my MacBook Air (and rebooting). Duet found the iPad just as soon as I connected the USB cable. The company claims it can deliver a retina display at 60 frames per second with no lag.

via The Verge

Bezos defends Amazon’s lack of profits, stance on publishers

Jennifer Saba wrote on Reuters about Jeff Bezos defending Amazon’s lack of profits and the company’s stance on publishers.

His comments come a day after Moody’s Investors Service downgraded its outlook on Amazon to “negative,” citing the company’s upcoming debt offering and the “lack of visibility” about how the funds would be deployed.

Investors have grown increasingly unhappy about Amazon’s spending and lack of disclosure about future plans. Its shares have fallen more than 18 percent this year, despite a 14 percent rise in the Nasdaq.

You would expect a big company like Amazon to be accountable to investors.

Bezos, relaxed in jeans and a gray jacket, defended Amazon’s culture as one willing to spend on new projects, even if they flop like its poor-selling Fire phone.

“We are a large company, but we are also still a start-up. There is a lot of volatility in start-ups,” Bezos said at a conference organized by the Business Insider blog in New York.

I think I have talked enough about the Fire Phone. The investors are probably glad to know that they are investing in a start-up.

Publishers are in better shape because of e-books, which became popular after Amazon launched the Kindle e-reader in 2007, he said, adding that books are still too expensive.

“It’s difficult for incumbents who have a sweet thing to embrace change,” Bezos said. “Making reading more affordable is not going to make authors less money. … It’s going to make authors more money.”

How is commoditisation of creative work a good thing for writers? Bezos shows a lack of appreciation for writing with his statement.

Ursula Le Guin puts it aptly:

I think hard times are coming, when we will be wanting the voices of writers who can see alternatives to how we live now, and can see through our fear-stricken society and its obsessive technologies, to other ways of being. And even imagine some real grounds for hope. We will need writers who can remember freedom: poets, visionaries—the realists of a larger reality. Right now, I think we need writers who know the difference between production of a market commodity and the practice of an art. The profit motive is often in conflict with the aims of art. We live in capitalism. Its power seems inescapable; so did the divine right of kings. … Power can be resisted and changed by human beings; resistance and change often begin in art, and very often in our art—the art of words. I’ve had a long career and a good one, in good company, and here, at the end of it, I really don’t want to watch American literature get sold down the river. … The name of our beautiful reward is not profit. Its name is freedom.

Customer data collection: why choose Apple Pay over CurrentC

John Gruber wrote about Target’s customer data collection.

This is what retailers like Target want to preserve, or even improve upon, with CurrentC. And this is exactly the sort of thing that Apple Pay, with its per-purchase unique tokens — is designed to prevent.

So you think it is reasonable for retailers to collect data about you to serve you better or tailor your shopping experience?

Take a look at what kind of information they might be gathering:

Whenever possible, Target assigns each shopper a unique code — known internally as the Guest ID number — that keeps tabs on everything they buy. “If you use a credit card or a coupon, or fill out a survey, or mail in a refund, or call the customer help line, or open an e-mail we’ve sent you or visit our Web site, we’ll record it and link it to your Guest ID,” Pole said. “We want to know everything we can.”

Also linked to your Guest ID is demographic information like your age, whether you are married and have kids, which part of town you live in, how long it takes you to drive to the store, your estimated salary, whether you’ve moved recently, what credit cards you carry in your wallet and what Web sites you visit. Target can buy data about your ethnicity, job history, the magazines you read, if you’ve ever declared bankruptcy or got divorced, the year you bought (or lost) your house, where you went to college, what kinds of topics you talk about online, whether you prefer certain brands of coffee, paper towels, cereal or applesauce, your political leanings, reading habits, charitable giving and the number of cars you own.

Are you comfortable with such profiling? Even if you are, your loved ones might not be.

Apple Pay is market leader in contactless payments after one week

John Gruber wrote about Apple Pay being the market leader in contactless payments.

One week, and Apple is already the market leader — using the same systems that Google Wallet and whatever else is out there have been using for years. And in retail locations (as opposed to within apps) it only works with one-month-old iPhone 6 devices.

Yes. Read that again and let it sink in.

It’s just marketing, and Apple’s ability to let their users know about new features like Apple Pay, and their ability to partner with a bunch of nationwide chains right off the bat. There’s no “just” about any of that. Getting users to know about new features is not easy. Getting partners on board is not easy. Selling tens of millions of brand-new phones in the first month is not easy.

The proof of the pudding is in the eating. These NFC terminals have been in stores for years, and never became popular. Then Apple Pay went live one week ago, and the iPhone is already the market leader.

Credit should be given where it’s due. It is a remarkable feat for Apple to pull this off.

To quote Apple CEO Tim Cook:

Apple engineers platforms, devices, and services together. We do this so that we can create a seamless experience for our users that is unparalleled in the industry. This is something only Apple can do.

The myth of device lock-in

John Gruber wrote a very good piece on switching and lock-in to phone systems in response to an article by Joshua Brustein in Businessweek.


Phone manufacturers make it hard to switch on purpose: They want you locked in forever. That’s the idea behind the Apple Watch and Apple Pay, which don’t work for Android. (Ditto for Samsung’s Gear S watch and Gear VR headset, which are made to work with the company’s other devices.)

Sounds like a sweeping statement by someone who doesn’t understand how those devices work.


This is just completely and utterly wrong. It’s shallow thinking. Lock-in is certainly something Apple (and Google, and Samsung, and everyone else) thinks about. But lock-in has nothing to do with why Apple Watch will only work with iPhone, or why Android Wear devices only work with Android phones.

Apple Watch can only work with iPhone because it does things that require the two be developed together. The hardware and software on both the Watch and iPhone all work together. Apple could make a watch that supports both iPhone and Android, but that watch wouldn’t work anything like Apple Watch, because it would be severely limited by the common features shared by iPhone and Android. And the same is true of Android Wear — it doesn’t work with iPhone because there’s no way Google can provide software that runs on an iPhone to do what Android Wear devices need their paired phone to do.

Likewise, you are not locked into your Apple or Android device. You can make the switch. You just need to know the steps needed. We are increasingly storing our content in the cloud and if you are on a third-party cloud service, you can switch without even moving your content.

Gruber on switching:

I wouldn’t say it’s easy to switch from Android to iOS or vice versa, but looking at the history of personal computing, I think it’s easier to switch platforms today than ever before — in either direction. The move to cloud-based storage and syncing makes a lot of things less sticky. Gmail is Gmail. Dropbox is Dropbox. You can even access your iCloud email from Android, because it’s just IMAP. Add to that the fact that the overwhelming majority of mobile apps are free or extremely cheap.

Even if you are on iCloud, you can export your contacts to vCard and import them to Gmail. There are ways to do it. You just need to know how to. Or if you don’t, you can search the internet for a solution before you write an article about how you think you are locked in.