Day: July 27, 2017

Apple said Thursday that it will discontinue the iPod Shuffle and iPod Nano, the last two music players in the company’s lineup that cannot play songs from Apple Music, its streaming service that competes with Spotify and Pandora Media.

The two devices are the direct descendants of the original iPod introduced by then-CEO Steve Jobs in 2001, widely seen as putting Apple on the eventual path toward the iPhone. They can only play songs that have been downloaded from iTunes or from physical media such as CD.

Apple said the new iPod line will consist of two models of the iPod Touch ranging form $199 to $299 depending on storage capacity. The iPod Touch is essentially an iPhone without mobile data service and runs iOS, the same operating system as iPhones and iPads.

It is capable of streaming music from Apple Music and running the same apps as iPhones. Apple does not break out sales figures for iPods but says the iPod Touch is the most popular model.
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Intel’s more than two decade-long reign as the king of the silicon-based semiconductor is poised to end Thursday when South Korea’s Samsung Electronics elbows the U.S. manufacturer aside to become the leading maker of computer chips.

Samsung reported record-high quarterly profit and sales Thursday. Analysts say it likely nudged aside Intel in the April-June quarter as the leading maker of semiconductors, the computer chips that are as much a staple of the 21st century wired world as crude oil was for the 20th century.

Samsung said its semiconductor business recorded 8 trillion ($7.2 billion) in operating income on revenue of 17.6 trillion won ($15.8 billion) during the April-June period.

Intel, which reports its quarterly earnings later Thursday, is expected to report $14.4 billion in quarterly revenue.

On an annual basis, Samsung’s semiconductor division is widely expected to overtake Intel’s sales this year, analysts at brokerages and market research firms say.

Mobile devices and data are the keys to understanding Samsung’s ascent as the new industry leader, even as its de facto chief is jailed, battling corruption charges, and it recovers from a fiasco over Galaxy Note 7 smartphones that had to be axed last year because they were prone to catch fire.

Manufacturers are packing more and more memory storage capacity into ever smaller mobile gadgets, as increased use of mobile applications, connected devices and cloud computing services drive up demand and consequently prices for memory chips, an area dominated by Samsung.

Just as Saudi Arabia dominates in oil output, Samsung leads in manufacturing the high-tech commodity of memory chips, which enable the world to store the data that fuels the digital economy.

“Data is the new crude oil,” said Marcello Ahn, a Seoul, South Korea-based fund manager at Quad Investment Management.

For over a decade, Samsung and Intel each ruled the market in its own category of semiconductor.

Intel, the dominant supplier of the processors that serve as brains for personal computers, has been the world’s largest semiconductor company by revenue since 1992 when it overtook Japan’s NEC.

Samsung is reaping the rewards of dominating in the memory chip market which is growing much faster than the market for computers that rely on processing units dominated by Intel, said Chung Chang Won, a senior analyst at Nomura Securities.

“Greater use of smartphones and tablet PCs instead of computers is driving the rise of companies like Samsung,” Chung said.

Since 2002, Samsung Electronics has been the largest supplier of memory chips, called DRAMs and NANDs. But for years demand for memory chips was vulnerable to boom and bust cycles depending on output and on demand from the consumer electronics industry. At times, competition was brutal as supply gluts arose.

That changed in 2012 when Japan’s Elpida filed for bankruptcy and was sold to Micron Technology, leaving only three major suppliers of DRAM, a type of memory chip used in servers, computers and handsets: Samsung Electronics, SK Hynix and Micron.

Tight supplies coupled with rock solid demand have pushed prices of memory chips higher, with average selling prices of DRAMs and flash memory chips doubling over the past year, bringing South Korea’s memory chip makers record wide profit margins. Both Samsung and SK Hynix are expected to report all-time high profits this year.

Amid this boom that analysts call a memory chip “super cycle,” global semiconductor revenue is forecast to jump 52 percent this year, reaching $400 billion for the first time, according to market research firm Gartner.

For the full year, Intel is expected to post $60 billion in annual sales, according to a market consensus polled by FactSet, a financial data provider. Samsung Electronics’ semiconductor business is expected to report 71.9 trillion won ($62.6 billion) in full-year revenues.

Looking ahead, Samsung and SK Hynix, which control more than three quarters of the global DRAM sales, are raising their spending on semiconductor capacity and development in anticipation of robust future demand. SK Hynix raised its capital spending to 9.6 trillion won ($8.6 billion) this year, up more than 50 percent from last year. Samsung has said it plans to spend $18 billion in the next four years to expand memory chip production capacity at its South Korean plants.

Not just tech companies but also transport, retail, tourism, food and other industries are seeking ways to better use or manage data, to gain insights on trends or customer preferences and otherwise make money from “big data.” The rising use of vehicle connectivity and the “internet of things” is expected to drive still further demand for the chips that have helped Samsung move ahead, at least for now.
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Twitter has made it clear that it won’t ban Donald Trump from its service, whether the president follows its rules against harassment or not.

 That’s no surprise: The president’s tweets draw attention to the struggling service, even if tweets mocking reporters and rivals undercut Twitter’s stated commitment to make the service a welcoming place.

 The company has been cracking down on accounts that violate its terms, and Trump’s critics say he has broken Twitter’s rules multiple times.

 Calls to ban Trump from Twitter, largely by liberal activists, writers and Twitter users, sounded even before he became president. They were renewed recently when the president posted a mock video of him “body slamming” a man whose face was covered by CNN logo. Groups such as the Reporters Committee for Freedom of the Press condemned the video as a threat against journalists (a White House aide said at the time that the tweet should not be seen as a threat).

The case for Trump

Twitter does ban harassment and hateful conduct, but there is a lot of wiggle room as to what constitutes such behavior. For instance, though it may be crude to tweet that a TV host was “bleeding badly from a face-lift,” they are at best in a gray area when it comes to violating Twitter terms.

When asked about Trump, Twitter says it doesn’t comment on individual accounts. But CEO Jack Dorsey told NBC in May that it’s “really important to hear directly from leadership” to hold people accountable and have conversations out in the open, not behind closed doors.

 It also makes business sense: Trump’s tweets are constantly in headlines, calling attention to Twitter and, ideally, getting more users to sign up.

 For now, it doesn’t appear to be helping. On Thursday, Twitter said its monthly average user base in the April-June quarter grew 5 percent from the previous year to 328 million, but it was unchanged from the previous quarter. Twitter’s stock fell more than 9 percent to $17.75 in pre-market trading Thursday after the numbers came out.

Twitter has never turned a profit. On Thursday, the San Francisco-based company reported a second-quarter loss of $116 million, or 16 cents per share, compared with a loss of $107 million, or 15 cents per share, a year earlier.

Revenue declined 5 percent to $574 million from $602 million, inching past Wall Street’s muted expectations.

Important tweets

Free speech advocates agree it’s better for Trump to stay.

Emma Llanso, director of the Center for Democracy & Technology’s Free Expression Project, said Trump’s tweets are “very clearly politically relevant speech” and are even being cited in court cases challenging the president’s policies. For example, a U.S. appeals court used Trump’s tweets in June to block his travel ban on people from six predominantly Muslim countries.

Llanso said it’s understandable why there has been “so much pressure” on social media platforms to crack down on harassment. Long before Trump was elected, users and online safety advocates called on Twitter to do something about abuse on its service.

But when it comes to the president’s outsized presence on Twitter, she’d rather have a private company avoid deciding what should and shouldn’t be allowed. Rather, she said, “we should be looking to the instruments of our democracy as the appropriate place to hold the president accountable.”

Surviving the crackdown

Twitter appears to agree. Earlier this month, the company announced that it is now taking some action, including suspensions, on 10 times the number of abusive accounts than it did a year ago (though it did not give a number). Trump, of course, was not in trouble.

In June, the president defended his use of social media, tweeting that the mainstream media doesn’t want him to get his “honest and unfiltered message out.” The White House did not immediately respond to a message for comment on Thursday morning.

It works both ways

Twitter provides a platform for the president to interact with the world directly, without intermediaries such as the news media. But if it’s important for people to hear directly from Trump, free speech advocates say, it’s also important for Trump to listen – and to allow people to see his messages.

His blocking of individual users on the service is the subject of a lawsuit .

Comedian Dana Goldberg, who says she has been blocked by the president but is not part of the lawsuit, likened it to him “giving the State of the Union and blocking out the TV sets of people who voted for (Hillary) Clinton.”

Her offense? Goldberg, who has about 7,680 followers compared with Trump’s 34.6 million, said it was her tweet calling Trump “a sad man” after he wished Sen. John McCain well following a cancer diagnosis, despite deriding McCain’s war record before.

“The fact that I was blocked by the president of the United States, it’s insane,” she said.

 
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A construction permit should be granted for a giant telescope planned for a Hawaii mountain summit that some consider sacred, a hearings officer recommended Wednesday.

Retired judge Riki May Amano, who is overseeing contested-case hearings for the Thirty Meter Telescope, had been weighing facts in the case since June, after hearing oftentimes emotional testimony that spanned 44 days.

The $1.4 billion project has divided those who believe the telescope will desecrate land atop Mauna Kea held sacred by some Native Hawaiians and those who believe it will provide Hawaii with economic and educational opportunities.

Many more hurdles

This isn’t the final say on whether the embattled project will proceed.

Now that Amano has issued her proposed decision and order, the state land board will set a deadline for telescope opponents and permit applicants to file arguments against her recommendations. The board will later hold a hearing and then make the final decision on the project’s conservation district use permit.

Gov. David Ige said his office was reviewing the conditions Amano put on her recommendation, including that employees attend mandatory cultural and natural resources training and that employment opportunities be filled locally “to the greatest extent possible.”

“Regardless of the (land board’s) ultimate decision, I support the co-existence of astronomy and culture on Mauna Kea along with better management of the mountain,” Ige said in a statement.

This second round of contested-case hearings was necessary after the state Supreme Court invalidated an earlier permit issued by the board.

The telescope’s board of directors held public meetings before selecting Mauna Kea as the preferred site in 2009. In 2011, opponents requested so-called contested-case hearings before the state land board approved a permit to build on conservation land. The hearings were held, and the permit was upheld. Opponents then sued. In December 2015, the state Supreme Court revoked the permit, ruling the land board’s approval process was flawed. That meant the application process needed to be redone, requiring a new hearing.

‘Far from done’

Telescope officials didn’t immediately comment on Amano’s recommendation. They have said they plan to build it in the Canary Islands if they can’t build in Hawaii.

Kealoha Pisciotta, one of the leaders fighting against the telescope, said she’s disappointed but not surprised.

“They’re far from done,” she said. “They still have to go before the board. We still have the right of appeal — before anyone can even begin to contemplate any action or earth-moving on Mauna Kea.”
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The U.S. Transportation Security Administration is boosting security measures by requiring any carry-on electronics larger than a cellphone to be screened separately at U.S. airports.

Security officers will ask travelers to take all larger devices out of their bags and put them in a bin by themselves, similar to the screening of most travelers’ laptops, TSA announced Wednesday.

‘An increased threat’

TSA cited an “an increased threat to aviation security” as the reason for the move. The change will not apply to PreCheck lanes.

The new rule eliminates one benefit of leaving laptops at home and traveling with a tablet. In the past, travelers weren’t required to fish out those smaller  electronics from their carry-on bags to be X-rayed.  

In May, the TSA said it was going to test additional screening measures for tablets at 10 U.S. airports. That pilot program was successful and the agency said it planned to expand the rules nationwide “during the weeks and months ahead.”

Worried about laptops

Airlines for America, a trade group representing American, Alaska, Atlas, Federal Express, Hawaiian JetBlue, Southwest, United and UPS airlines “remain committed to working collaboratively with DHS officials to strike the appropriate balance of maintaining the efficiency of the system, while ensuring the highest levels of security are in place.”

The threat of terrorists hiding explosives in laptops prompted the Department of Homeland Security in March to ban electronics larger than cellphones in carry-on bags on direct flights of nine airlines at 10 Middle East airports to the U.S.  That ban has since been lifted as each of the airlines tightened its screening.

John Kelly, the secretary of Department of Homeland Security, then announced tighter security for all 180 airlines flying directly to the U.S. from 280 airports worldwide. The measures that went into effect July 19 applied to 325,000 passengers on 2,000 daily flights.
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