Norwegian software maker Opera inked a deal to take over the browser building unit of Microsoft’s Nokia cellular phone unit and reported second-quarter earnings above expectations on Thursday, sending it shares sharply higher.
“We have signed a strategic licensing deal with Microsoft. We are basically taking over the browser building department in Nokia,” Opera Chief Executive Lars Boilsesen said. “This means that Opera Mini will become the default browser for Microsoft’s feature phone product lines and the Asha phones product lines.”
The deal will be profitable from the start, he added.
“All the current user base will be encouraged to upgrade to Opera Mini and all the new phones will come with Opera Mini pre-installed as a default browser. This is a great deal for us. We have dreamed of this for more than 10 years.”
In a separate statement, Opera said the licensing agreement applies to mobile phones based on the Series 30+, Series 40 and Asha software platforms.
“As part of the agreement, people who use the current browser for these phones, Xpress, will be encouraged to upgrade to the latest Opera Mini browser. Factory-new devices will have Opera Mini pre-installed.”
Snapchat Inc, creator of a mobile app that allows users to send messages that disappear within seconds, may be looking to expand its service to videos, news articles and advertisements, the Wall Street Journal is reporting.
The California-based company is currently in talks with advertisers and media companies about a service called Snapchat Discovery, the Journal reported, citing sources.
Snapchat Discovery, rumored to debut in November, will show content and ads to Snapchat users, the Journal quoted the sources as saying.
At least a dozen media companies have shown interest in providing content for Snapchat Discovery, the Journal said.
Snapchat Discovery will allow users to read publications and watch video clips by holding down a finger on the screen, as they do with photos and other messages on the app, the report said.
Snapchat, popular among teenage users, was not immediately available for comment outside regular business hours.
Cox Communications Inc. is not interested in merging with wireless carrier T-Mobile US Inc or rival cable providers, according to Cox President Pat Esser, dispelling rumors recently swirling about the private company.
“We’re not in any discussions to buy T-Mobile,” Esser told Reuters. “I don’t see a movement inside of our company that we feel like we have to pony up or match up with a wireless company.”
Asked whether Cox, the third-largest U.S. cable and broadband company, was considering a merger with one of its smaller cable rivals, such as Charter Communications Inc or perennial takeover target Cablevision Systems Corp, Esser said family-owned Cox was not looking to become a publicly traded company.
“I would never say we’ll never be public in the future. But right now where the family’s at, where [parent company] Cox Enterprises is at, they like being private,” Esser said. “We have a very, very healthy balance sheet, we have a lot of capacity and we can do most of that inside of our current balance sheet and still remain private.”
Continuing a year marked by a whirlwind of dealmaking among telecom companies, sources told Reuters earlier this month that Iliad, a French telecom firm, was in talks with U.S. satellite and cable operators Cox, Charter and Dish Networks Corp regarding a potential joint bid for U.S. wireless carrier T-Mobile.
Esser said that instead, he saw the future of Cox Communications in wi-fi offerings and connectivity services, such as home security.
“Wireless use of broadband is growing but it’s not through traditional cellular services, it’s wi-fi. Wi-fi is exploding,” Esser said. “Wi-fi is the future … Connected homes are the future.”
The vulnerability means that on the surface, it looks like the popups and advertisements are coming from the websites users are visiting, when they are actually coming from the fake Evernote web extension.
Researchers at the company discovered the vulnerability in a “multi-plug .PUP” file, which installs the fake Evernote browser extension.
A PUP file is one that has the .pup file extension and is most commonly associated with the Puppy Linux operating system. PUP files run when an installer program is opened on the user’s computer and they are similar to the installer.exe files that are used with Windows applications.
“A quick look shows the PUP is digitally signed by ‘Open Source Developer, Sergei Ivanovich Drozdov’, although the certificate has since been revoked by the Issuer. This serves as another reminder that you can’t always trust a program just because it’s digitally signed,” said Malwarebytes malware intelligence analyst Joshua Cannell.
“Clicking ‘Visit website’ directs the user to the Chrome webstore page for the actual Evernote Web extension,” Cannell added. “Chrome believes the real extension is installed, as verified by the Launch App button. When clicking this button with the fake extension installed, nothing happens, whereas normally the user is met with an Evernote login screen.”
Cannell explained that this is because the extension uses a content script to run in the context of the webpages a user browses.
“The content script is guaranteed to be loaded into every web page using the extension manifest (manifest.json). When visiting webpages, you’ll get a series of annoying advertisements, all leading to potentially more unwanted programs and offers,” he added.
To remove the extension, Chrome users need to visit the extensions tab in the browser and click the picture of a garbage can.
Evernote hit the headlines for its security concerns last year when it emerged that its network had been compromised by hackers.
The online note-taking service issued a password reset for all users after the discovery. It said that it “discovered and blocked” suspicious activity on its network, but claimed that no user data was compromised during the intrusion.
“In our security investigation, we have found no evidence that any of the content you store in Evernote was accessed, changed or lost,” Evernote said.
Sprint Corp unveiled a new pricing plan that gives customers 20 gigabytes of data and up to 10 lines for $100, doubling its data offerings, the latest in a series of cuts and promotions that is re-shaping the wireless industry.
Sprint’s chairman, business tycoon Masayoshi Son, is betting new prices will revive a carrier hampered by an expensive network overhaul and rising competition.
“The message is simple: We are back in the game. We are going to offer most competitive value for American consumers,” Marcelo Claure, Sprint’s newly appointed chief executive told Reuters in an interview.
The company will release new plans for individuals later this week.
The announcement marks the first move for the new CEO, who last week said cutting prices would be his top priority.
The move comes after Verizon slashed prices for its unlimited talk and text plan and T-Mobile expanded its family plan to 6 lines and could signal more price cuts ahead for the industry as a whole.
Sprint is going it alone after scuttling a months-long effort to pursue a merger with No. 4 U.S. cellular provider T-Mobile US Inc.
Last year, an aggressive campaign by T-Mobile to address subscriber frustrations and lower prices sparked a domino effect that caused the U.S. top four carriers to restructure pricing plans and cut rates to lure customers in a nearly saturated market.
But analysts worry the industry’s latest discount spree could increase pressure on already tight margins and rattle dividends.
While top carriers and Verizon have largely been able to mitigate the impact of T-Mobile’s discounts on their subscriber base, they would likely have to respond to price cuts at Sprint with steep discounts of their own to keep subscribers from migrating, analysts said.
“We will see a trickle down in pricing concessions across the industry. This is the start of a price war many anticipated would be coming,” said Angelo Zino, analyst at S&P Capital IQ.
New pricing plans that charge customers separately for the cost of their devices have somewhat offset price cuts this year, Zino said, but if the discounts continue, they could pose a long-term threat to the dividends.
The storage of user data in China represents a departure from the policies of some technology companies, notably Google Inc, which has long refused to build data centers in China due to censorship and privacy concerns.
Apple said the move was part of an effort to improve the speed and reliability of its iCloud service, which lets users store pictures, e-mail and other data. Positioning data centers as close to customers as possible means faster service.
The data will be kept on servers provided by China Telecom Corp Ltd, the country’s third-largest wireless carrier, Apple said in a statement.
“Apple takes user security and privacy very seriously,” it said. “We have added China Telecom to our list of data center providers to increase bandwidth and improve performance for our customers in mainland china. All data stored with our providers is encrypted. China Telecom does not have access to the content.”
A source with knowledge of the situation said the encryption keys for Apple’s data on China Telecom servers would be stored offshore and not made available to China Telecom.
Apple has said it has devised encryption systems for services such as iMessage that even Apple itself cannot unlock. But some experts expressed scepticism that Apple would be able to withhold user data in the event of a government request.
“If they’re making out that the data is protected and secure that’s a little disingenuous because if they want to operate a business here, that’d have to comply with demands from the authorities,” said Jeremy Goldkorn, director of Danwei.com, a research firm focused on Chinese media, internet and consumers.
“On the other hand if they don’t store Chinese user data on a Chinese server they’re basically risking a crackdown from the authorities.”
Goldkorn added that data stored in the United States is subject to similar U.S. regulations where the government can use court orders to demand private data.
A spokesman for China Telecom declined to comment.
Chip-equipment maker Applied Materials has surprised most of the cocaine nose jobs of Wall Street with a better-than-expected third-quarter profit. It appears that contract manufacturers are spending more on technology used to make smartphone and memory chips.
The company also forecast current-quarter adjusted profit largely above analysts’ average estimate. Chief Executive Gary Dickerson said that demand for DRAM chips is expected to grow in the current quarter.
Applied Materials, which also provides equipment to make flat panel displays and solar cells, forecast an adjusted profit of 25-29 cents per share for the fourth quarter. Wall Street was expecting a profit of 26 cents per share.
Applied Materials expects revenue growth of about 10 to 17 percent, implying revenue of $2.19 billion to $2.33 billion for the quarter. Analysts on average were expecting $2.28 billion. Applied Materials’ net income rose to $301 millionin the third quarter ended July 27, from $168 milliona year earlier. Revenue rose 14.7 percent to $2.27 billion.
Revenue in the company’s silicon systems business, which brings in about two-thirds of total sales, rose 16 percent to $1.48 billion.
U.S. Federal Communications Commission has said it would accept public comments on its proposed new “net neutrality” rules through Sept. 15, giving the American public extra time to voice their opinions and concerns on how they think Internet traffic should be regulated.
The FCC has received more than 1 million comments already on new rules for how Internet services providers should be allowed to manage web traffic on their networks.
The FCC had set a deadline of July 15 for the initial comments and then September 10 for replies to those initial comments. However, the surge in submissions overwhelmed the FCC’s website and the agency had delayed the first deadline by three business days.
“To ensure that members of the public have as much time as was initially anticipated to reply to initial comments in these proceedings, the Bureau today is extending the reply comment deadline by three business days,” the FCC said on Friday, delaying the final deadline for comments to September 15.
The company reported Thursday that its net profit reached $214 million, while quarterly revenue increased 18 percent year-over-year to $10.4 billion.
Although better known as a PC maker, Lenovo has been making major gains selling mobile handsets in its home market of China. It is now the country’s largest smartphone vendor with a 12.5% share of the market, according to research firm IDC.
The second quarter was the first time Lenovo smartphones outsold its PCs, with 15.8 million units, the company reported on Thursday.
Lenovo’s handsets still aren’t making as much money as PCs. Almost half its revenue came from selling laptops, while its mobile devices division, which includes tablets, accounted for only 15% of its total revenue in the quarter.
The company’s PC business has in the past been helped by its huge presence in its home market of China. But in the second quarter, Lenovo reported that it was also making gains in PC sales to Europe, the Middle East, and Africa.
In those markets, the company’s revenue reached $2.8 billion, up from $1.9 billion a year ago.
Lenovo, which currently ranks as the number one PC vendor in the world, is trying to expand in servers and mobile devices. Earlier this year, the company announced it would acquire Google’s Motorola Mobility, and IBM’s x86 server business.
Lenovo is still working with regulators to get approval for those deals.
The chip maker said it is partnering with the Michael J. Fox Foundation, established by the actor and Parkinson’s sufferer in 2000, to conduct a multi-phase research study of the neurodegenerative brain disease. An estimated five million people globally have been diagnosed with Parkinson’s, the second-most-common neurudegenerative disease after Alzheimer’s.
The initial goal is to determine the feasibility of using wearable devices to monitor patients remotely and store that data in an open system that can be accessed by scientists.
In the next phase of the study, which will likely kick off in the fall, the foundation will set aside funds to explore how patients are responding to medication. Participants will be monitored via an array of wearable devices.
“As more of these devices hit the market, we can collect objective measurements and determine the efficacy of new therapeutics,” Sohini Chowdhury, a senior vice president for research partnerships at the foundation, told Reuters.
Clinical trials have been far too “subjective” in the past, she said. For instance, a patient might inform her doctor that she felt a tremor for several minutes, when it actually lasted a matter of seconds. In the future, Chowdhury hopes patients and their doctors will have more precise measurements via wearable devices about the “frequency and severity” of symptoms.
Chowdhury said the foundation will continue to raise funding to cover the costs of providing wearable devices to patients.
By using such devices, the foundation and other research groups can tap into a broader pool of patients for clinical trials, Chowdhury said. Today, many people with Parkinson’s disease are unable to participate in clinical trials because they do not live near a research facility.
But wearable devices offer a convenient way to track patients from their work or homes, allowing people in the most rural parts of the country to participate.
As it expands beyond the PC arena, Intel hopes to capture a share of the growing market for big data analytics and wearable devices in the health sector. Ron Kasabian, general manager of Intel’s Big Data Solutions group, said the data center and “Internet of Things” business units are exploring the sector.
“We’re exploring how to pull data out of devices in real-time,” he said. “We can mine data to improve research, and better understand the behaviors and progression of the disease.”
What a difference a year makes. Motorola sold 8.6 million smartphones in the second quarter, up from 6.5 million in the first three months of the year, and more than double what it sold in the same quarter a year earlier, according to ABI Research.
The figures pale in comparison with those of Apple and Samsung, which sold 35.2 million and 75 million phones last quarter, respectively. But Motorola is in a position few thought it would reach just a year ago.
“The resurgence has slightly surprised me, to be honest. I didn’t expect to see Motorola come back in a meaningful way, but it actually has,” said Nick Spencer, senior practice director at ABI Research.
Ben Wood, director of research at CCS Insight, agreed.
“If you’d asked me about Motorola a year ago, I would have said it was on a distinct trajectory towards oblivion,” he said.
Motorola’s turnaround can be attributed only in part to Google, which announced it would buy the handset maker three years ago this week. The deal gave Motorola a new lease on life, but Google operated Motorola largely at arm’s length, and it now plans to sell the division to Lenovo.
It took more than two years after the Google deal for Motorola to release a phone that resonated with consumers. Its first device was the high-end Moto X, but not using the latest components and relying on software features to attract buyers turned out to be a miscalculation.
But thanks to the Moto G, the LTE version of that phone and the Moto E, Motorola’s sales have turned a corner. The company apparently hit on a winning formula, offering phones at lower prices but with features good enough to please many consumers.
“As the market for flagship smartphones has softened and a lot of people are looking at buying devices without a contract, Motorola’s Moto E and G seem to have really captured the moment,” Wood said.
Apple, which was at the forefront of creating the tablet market in 2010 with its first iPad, has seen growth plummet from 2012, as larger phones became more popular and people delayed replacing their tablets.
Mass production of the iPad with a 9.7-inch (24.6-cm) screen has already started, and it is likely to be unveiled by the end of current quarter or early next quarter, Bloomberg said, citing two people familiar with the matter.
A new version of the 7.9-inch iPad mini is also entering production and is likely to be available by the end of the year, Bloomberg said.
Apple spokeswoman Trudy Muller declined to comment on the report.
International Business Machines Corp said in July it would partner exclusively with Apple to sell iPhones and iPads, which could rejuvenate the tablet’s sales by entering into a largely untapped corporate market.
Apple shipped 13.2 million iPads in the June quarter, 8 percent less than a year earlier. Sales of the devices, which accounted for 15 percent of revenue, fell short of Wall Street’s expectations for the second quarter in a row.
Since Edward Snowden revealed that the US government is spying on everyone, there has been a boom in the sales of expensive “difficult to hack” phones. Two products new products in the last five weeks show how the market place for off the grid communications is growing.
First one there was the Blackphone, a handset which started shipping on June 30 for $629, and last week there was an app called Signal which appeared last week. Blackphone and Signal use encryption developed by world-class cryptographers and developers who hate the US government.
Signal maker Open Whisper Systems wrote on its blog that in an environment of increasingly pervasive surveillance, it wanted to make it as easy as possible for anyone to be able to organize and communicate securely. Blackphone uses Silent Circle, that allows users to send encrypted voice calls and texts to one another. Silent Circle’s software is already available for iPhone and Android phones, but the company says Blackphone uses a sexed up version of Android that makes it harder for hackers to take control of the phone and listen in.
Signal maker reports that the software had 70,000 downloads on the first day, probably because the service is free.
In another dose of bad news for Samsung Electronics, the Korean tech giant has lost its ranking as China’s top smartphone vendor, after holding onto the position for two straight years, according to research firm Canalys.
In this year’s second quarter, Chinese company Xiaomi overtook Samsung to become the country’s largest smartphone maker with a 14 percent market share. Samsung held on to the second spot, with a 12 percent share, slightly ahead of third place Lenovo, outshipping it by 200,000 units.
The Korean electronics giant had been China’s leading smartphone maker since 2012′s first quarter, said Wang Jingwen, an analyst with Canalys. At the time, the company’s market share was 22 percent.
In China, Samsung sells a large range of handsets, from high end to low, and benefits from a strong brand and a vast reseller network. But its Chinese rivals are increasingly putting pressure on the company, especially when it comes to selling lower-end phones, Wang said.
“In the mid-to-low end segment, Samsung devices have not represented great value for money in China,” she said. The country’s largest mobile carrier, China Mobile, is also partnering more with domestic handset makers to launch phones built for its new 4G network, Wang added.
Xiaomi, on the other hand, has been growing fast, largely by selling feature-packed smartphones at just above cost price. This marks the first time the Chinese company has taken the top spot in China, after only starting to sell phones three years ago.
Xiaomi’s low-end series of phones, known as Redmi, are driving the company’s shipments in China, which reached almost 15 million in the second quarter, according to Canalys. The Redmi phones can start as low as 699 yuan (US$113) when bought without carrier subsidies.
Xiaomi’s aggressive pricing is leading the company’s success, Wang said. The company has already sold 26.1 million phones in this year’s first half, with the goal of selling a total of 60 million by the end of this year. Although not a big name outside of China, Xiaomi is expanding to ten foreign markets this year.
Signal comes from Open Whisper Systems, who also created RedPhone and TextSecure, both Android applications that encrypt calls and text messages.
The application is compatible with RedPhone and eventually RedPhone and TextSecure will be combined in a single Android application and called Signal as well, according to a blog post.
Signal is notable for two reasons. First, it’s free. There are many voice call encryption products on the market for various platforms, most of which are not cheap and are aimed at enterprise users.
Second, Signal is open source code, meaning developers can look at the code and verify its integrity. That’s important because of concerns that software vendors have been pressured into adding “backdoors” into their products that could assist government surveillance programs.
The beauty of Signal is its simplicity. Setup requires verifying the device’s phone number through a one-time code that is sent by SMS. Signal displays only the contact details of the other user who has it installed.
It provides end-to-end encryption of voice calls over a data connection. Signal displays two words on a screen during a call, which are meant to be verified with the party on the other end to ensure a man-in-the-middle attack isn’t underway.
Signal adds to a growing number of mobile encryption offerings from software vendors. Silent Circle, based in Washington, D.C., offers encrypted calling and texting services for a monthly subscription, and is a partner in Geneva-based SGP Technologies which makes the BlackPhone, a security minded device released last month.