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Can Intel Grow Without The PC Market Growing?

November 30, 2015 by Michael  
Filed under Computing

Intel said 2016 sales will climb in the “mid single-digit” percent range and said it didn’t need a buoyant personal-computer market to make piles of dosh.

Chief Executive Officer Brian Krzanich told analysts that Intel’s growth was not dependent on its PC business.

Intel is facing a weaker PC market and said that its revenue has been bolstered by demand for high-powered processors that run servers, the building blocks of cloud-computing centers.

Additionally, orders for memory chips and processors used in new markets for Intel — such as automotive and factory automation — are helping to boost sales, the CEO said.

Intel predicted gross margin, or the percentage of sales remaining after deducting the cost of production, of about 62 percent for 2016. It’s budgeting about $10 billion for spending on new plants and equipment and raised its quarterly dividend payout by 2 cents a share, the company said in a filing today. The higher payout is in line with Bloomberg’s dividend forecast for Intel.

IDC Corp predicted that PC shipments are on course to shrink 4.9 percent to below 300 million units this year, after peaking at 364 million in 2011.

Stacy Smith, Intel’s chief financial officer said that even if the PC market shrinks 10 percent, Intel expects to be able to grow in the low-single digit percentage range, said. If the market is flat, Intel will grow in the high-single digit percentage range, he said.

While Intel got more than twice as much revenue from selling PC chips as it did from its data-centre group in the recent period, the two units brought in almost the same amount of operating profit.

That change has been driven by Intel’s 99 percent market share in server chips and surging demand for the machines from operators of data centres, such as Inc. and Google, which are building up their capacity to provide computing power, storage and services via the Internet.

Bill Holt, Intel’s head of manufacturing said that Chipzilla could reduce the cost of transistors which makes it worth investing in new production techniques. The company is maintaining its lead over TSMC and Samsung.

Intel is also on track to cut losses by its mobile chip division and expects a reduction of about a $1 billion this year, Smith said. In 2016 it’s aiming to get another $800 million closer to profitability in that business, he said.



Will Microsoft Debut A Lumia Business Phone Next Year?

November 24, 2015 by Michael  
Filed under Mobile

Microsoft surprised the world when its new phone range failed to contain anything to interest business users – now it seems it is prepared to remedy that.

Microsoft promised that its Lumia range would cover the low end, business and enthusiast segments but while the Lumia 950 and Lumia 950 XL and Lumia 650 should cover the low-end segment as well nothing has turned up for business users.

This was odd, given that business users want phones that play nice with their networks, something that Redmond should do much better than Google or Apple.

Microsoft’s CFO Amy Hood told the UBS Global Technology Conference that business versions of the Lumia were coming. She said:

“We launched a Lumia 950 and a 950 XL. They’re premium products, at the premium end of the market, made for Windows fans. And we’ll have a business phone, as well.”

There were no details, but we have been hearing rumours of a Surface phone being sighted on benchmarks. It was thought that his would be a Microsoft flagship, but with the launch of the Lumia 950/950 XL, it is possible that this Surface phone could be aimed at the business user. The word Surface matches nicely with Microsoft’s Surface Pro branding.




Samsung Boots Two-Thirds Of It’s R&D Staff

November 24, 2015 by Michael  
Filed under Computing

Samsung Electronics is about to decrease personnel at its Samsung Seoul R&D Campus by as many as two-thirds in order to restructure its business model and operations

A new report from ChosunBiz said that Samsung originally aimed to house around 10,000 personnel on the site. However the majority of the decreases will be applied to Samsung’s Digital Media & Communication (DMC) and Media Solutions Centre (MSC).

The campus will instead house about 3,500 staff who have master and PhD degrees and specialise in software, design and digital media development.

The move is odd as it is coming at a time when Samsung is really desperate for killer innovation to steal the march on the competition. However reading between the lines it looks like it is reducing work in its content creation side.

We are surprised that it is doing anything with its Media Solutions centre. Originally, it was established to operate as a Korean version of the App Store. But the company announced on December 10 last year that it was dissolves the organisation.

At the time it was admitted that the content business has not been as successful as the hardware business. Moreover, the worsening performance of the smartphone business arising from the increasingly saturated market forced the company to speed up the break-up process.



Mobile OS Sailfish Continues To Struggle, Layoffs Loom

November 24, 2015 by mphillips  
Filed under Mobile

With Android and iOS controlling most of the mobile operating system market, it’s tough going for alternatives like Sailfish, now in survival mode as its maker, Jolla, moves to lay off a large part of its workers.

The first smartphone with the Linux-based OS shipped at the end of 2013. Adoption of Sailfish has been weak, however, and Jolla is selling only one smartphone model, via the company’s website, for about $303. It’s a Jolla-branded phone, made by a third-party contract manufacturer. A tablet is also available for preorder.

Jolla is restructuring debt in its home country, Finland, after a round of funding fell through. The company announced Friday that it will lay off “a big part” of its staff, without giving many details of future plans. The company did say it would be tailoring the OS to fit the needs of different clients, and that it has several “major and smaller potential clients.” It also said Sailfish is stable and ready for licensing.

For analysts, Jolla’s collapse wasn’t a surprise. In a copycat market, Sailfish offers cool customization features, for example. But it doesn’t have the backing of device makers or carriers, which is crucial for survival.

The China market was a big focus for Jolla, but Xiaomi took the country by storm with end-to-end offerings including OS, user interface and hardware, along with the creation of a developer ecosystem, said Carolina Milanesi, chief of research and head of Kantar Worldpanel ComTech.

Many alternative mobile OSes like Ubuntu, Firefox, WebOS, Blackberry and others are in the same boat as Sailfish, trying to find a niche in a market ruled by Apple and Google. The biggest competitor to Android and iOS is Microsoft’s Windows Phone, which had just a 1.7 percent market share in mobile handsets, with 5.87 million units shipping during the third quarter this year, according to Gartner.

A Gartner analyst said Windows Phone could find adopters in the enterprise market. But Jolla doesn’t have the resources of Microsoft, of course, and this raises questions about the future of Sailfish.





Apple Acknowledges Issue With iPad Pro

November 23, 2015 by mphillips  
Filed under Consumer Electronics

Some iPad Pro owners have reported strange behavior in their new 12.9-inch tablets. Normally when you charge a device, unless the battery has completely died, the screen remains responsive. But some iPad Pros are completely freezing, then dying, after a recharge. The problem appears to be widespread — Apple’s support communities are filled with complaints about the issue.

Apple knows about the problem, but hasn’t said why it’s happening. There doesn’t seem to be a real fix for it, either — at least not yet. The company published a support document on Thursday advising Pro users to force restart their tablets to bring them back to life, but that’s not really a long-term solution, because the issue is ongoing.

“When I connect my iPad Pro to the charger for more than an hour, it goes dead,” one iPad Pro owner reported in the Apple support forum. “It takes multiple hard resets to bring it back to life.”

MacRumors first reported the iPad Pro issue last Monday, just days after the supersized tablets began shipping, and even experienced the problem with one of its own tablets. Apple employees are reportedly advising a range of solutions, from using iTunes to restore settings to performing a hard restart, as Apple is now officially recommending.

We’ll update this story when Apple pushes out a fix for the problem.


Qualcomm May Be Facing Anti-Trust Issues Abroad

November 23, 2015 by Michael  
Filed under Computing

Qualcomm can’t really get a lucky break anywhere. The chipmaker has just confirmed that it is facing an anti-trust probe in South Korea.

The company said it had recently received the Korea Fair Trade Commission’s staff-generated case examiner’s report (ER), which starts a process that allows Qualcomm to defend itself.

It seems that the allegation is that the company’s practice of licensing patents only at the device level and requiring that its chip customers be licensed to its intellectual property violate South Korean competition law.

“The ER alleges, among other things, that we do not properly negotiate aspects of our licenses,” Qualcomm said in a statement.

The investigation by the South Korean authorities was first reported in February, but no one confirmed it.

Qualcomm has faced investigations about its business and licensing practices in the U.S. and in the European Commission. It said in February it had settled with China’s National Development and Reform Commission in connection with the agency’s investigation of Qualcomm under the country’s anti-monopoly law.

In China Qualcomm had to pay a fine of $975 million and not condition the sale of baseband chips on the chip customer signing a license agreement with terms that the NDRC found to be unreasonable.

Qualcomm would also offer licenses to its current 3G and 4G essential Chinese patents separately from licenses to its other patents, and present a patent list during negotiations. Under the deal, the company also agreed to calculate royalty fees on 65 percent of the net selling price of the device.

The company on Tuesday defended device-level licensing as an industry norm worldwide and said its patent licensing practices were “lawful and pro-competitive
Samsung, LG and Pantech are key Qualcomm customers in South Korea.

The KFTC in 2009 ordered Qualcomm to pay $208 million for allegedly charging discriminatory royalties and offering conditional rebates in connection with its CDMA technology.



Sprint Introduces New ‘Half Off’ Rate Plan

November 20, 2015 by mphillips  
Filed under Mobile

Sprint has introduced a new simplified wireless plan offering 50% off competitors’ rates — part of an effort to lure consumers to try its faster LTE Plus network, which promises speeds of 128Mbps or more.

Sprint CEO Marcelo Claure said the costs of the new program will be more than offset by revenues from new customers. “There’s absolutely no way anybody can beat this offer,” he said during a briefing with reporters.

Sprint, the nation’s fourth largest carrier with about 59 million customers, has said it must cut up to $2 billion or more in operating expenses for the next fiscal year starting in April and will eliminate thousands of jobs to do so.

Even against that dreary backdrop, Claure said the new rate plan will bring in more customers. He didn’t indicate how many more are expected.

“There’s been a lot of skepticism on our network and the only way to convince them is to have them try,” he said. “Rest assured, we’ve done sufficient analysis and this is very accretive to Sprint” profits.

Sprint’s newest deal allows customers to take 50% off the price of most Verizon, AT&T and T-Mobile rate plans. The only rate plan excluded is T-Mobile’s unlimited data plan, which costs $90 a month. Sprint will still offer a $70-a-month unlimited data plan.

Businesses are not included in the deal, a spokeswoman said.

The offer goes into effect for activations beginning this Friday, Nov. 20 until Jan. 7, 2016; the 50% off deal remains in effect until Jan. 8, 2018. Claure said that with a free tablet and a free year of service, along with the half-off pricing, “that’s the bet we’re making” to get new customers.





Survey Says Amazon Is Top Destination For Online Holiday Shopping

November 20, 2015 by mphillips  
Filed under Around The Net

A majority of U.S. consumers plan to go to for most of their online holiday shopping, according to a Reuters/Ipsos poll, even after traditional retailers have collectively spent billions of dollars to try to capture Web demand.

The survey of 3,426 adults conducted from November 12 to 18 found that 51 percent plan to do most of their online shopping at Amazon this holiday season, compared to 16 percent at Walmart, 3 percent at Target and 2 percent at Macy’s.

A little more than a quarter of respondents said they would use another retailer not listed in the poll.

The poll underscored the hurdles that traditional retailers faced in expanding online. Their own sales data this week showed that such efforts were falling short.

Target Corp said on Wednesday its digital sales grew 20 percent in the latest quarter, missing its expectations for a 30 percent gain. The discount retailer cited weakness in electronics demand.

A day earlier, Wal-Mart Stores Inc reported quarterly online sales growth of 10 percent, slower than its target growth in the mid-to-high-teens this fiscal year. Wal-Mart pointed to sluggish market conditions in China, Britain and Brazil, and said it fared better in the United States.

In contrast, Inc had posted a 28 percent jump in North American sales in its quarterly report last month.

“The Big Kahuna that continues to grab market share is Amazon,” said Craig Johnson, head of retail consultancy Customer Growth Partners. “Both Wal-Mart and to some extent Target have simply not kept pace enough.”

Johnson added that sluggish spending overall contributed to the weaker-than-expected online sales at Target and Wal-Mart, which also faced increased competition from other online retailers, such as Wayfair Inc.

According to the Reuters/Ipsos poll, 8 percent of adults said they plan to shop only online this year, compared to 6 percent a year earlier. The proportion of respondents who said they would shop mostly online remained steady at 17 percent.

All major retailers are investing in e-commerce.

Miles Can Be Used For In-flight Wifi Says United

November 20, 2015 by mphillips  
Filed under Around The Net

United Airlines will begin allowing travelers to redeem frequent-flier miles for Wifi on flights, company officials said.

United, the second-largest U.S. airline by capacity, began testing a web portal on Thursday that lets customers use award miles to access the Internet on their laptops, tablets and smartphones, making it the first U.S. carrier with the feature, a spokesman said.

It hopes to roll out the portal to most U.S. domestic flights by early 2016 and to finish installations on international flights by mid-summer. Regional jets that United contracts for its United Express brand will get the portal later.

The move reflects an ongoing push in the airline industry to treat frequent-flier miles like a currency. Travelers already can redeem miles on U.S. carriers for hotel rooms, theater tickets, goods such as cameras and even identity theft monitoring.

This also marks United’s latest move to win over customers since Oscar Munoz took over as chief executive of parent United Continental Holdings Inc in September.

Munoz has solicited feedback from travelers on how to improve the airline, ranked the lowest in customer satisfaction of the largest North American carriers, according to J.D. Power’s 2015 ranking.

The team overseeing the sale of extra services such as Wifi is now focused on improving travelers’ experience more than maximizing revenue, United’s Vice President of eCommerce and Merchandising Scott Wilson said in an interview.

“There is a bias towards promoting that type of thinking. It’s always existed, but maybe where it was more balanced, it’s shifted a little bit,” he said.




Is Intel Readying It’s Knights Landing Processor?

November 20, 2015 by Michael  
Filed under Computing

Intel has started sending out its Knight’s Landing version of Xeon Phi and this one has a 72-core coprocessor solution manufactured on a 14nm process using shiny new 3D Tri-Gate transistors.

The coprocessors use Intel’s’s Many Integrated Core (MIC) architecture that stuffs cores into a single chip, which itself is part of a larger PCI-E add-in card solution for supercomputing.

Add-in cards run alongside these engines, such as NVIDIA’s Tesla GPUs to help with the number crunching.

Knight’s Landing succeeds the Knight’s Corner, which has up to 61 cores. Knight’s Landing has double-precision performance which can do more than 3 teraflops and over 8 teraflops of single-precision performance. It also has 16GB of on-package MCDRAM memory, which Intel says is five times more power efficient as GDDR5 and three times as dense.

In making the announcement Charlie Wuischpard, vice president and general manager of HPC Platform Group at Intel said that supercomputing was entering a new era and being transformed from a tool for a specific problem to a general tool for many,”

“System-level innovations in processing, memory, software and fabric technologies are enabling system capabilities to be designed and optimized for different usages, from traditional HPC to the emerging world of big data analytics and everything in between. We believe the Intel Scalable System Framework is the path forward for designing and delivering the next generation of systems for the ‘HPC everywhere’ era.”


Intel’s Broadwell E Details Leaked

November 19, 2015 by Michael  
Filed under Computing

A Chinese website has leaked details about Broadwell-E which sounds pretty plausible.

According toXfastest there will be four new processors under the new High-End Desktop (HEDT) banner for Broadwell.

Of the range, it would appear that the Core i7-6950X is the most interesting.  It has a 10-core CPU with Hyper Threading, which means that it has 20 threads to play with and 25MB of L3 cache.

However the CPU clockspeed is a little on the slow side, running at just 3.0GHz.  This will be a problem with software that is not properly tuned to take full advantage of large core counts and threads. It will be behind the Core i7-6700K which is a quad-core Skylake processor clocked at 4GHz to 4.2GHz on Turbo. The Core i7-6950X has more L3 cache, but it might lose to the Devil’s Canyon Core i7-4790K which can manage 4GHz to 4.4GHz.

For those who like their clockspeed, Chipzilla will release two faster-clocked six-core Broadwell-E processors and an eight-core CPU that strikes a balance between clockspeed and core count. The specs that Xfastest found show:

Intel Core i7-6950X: 10 cores, 20 threads, 25MB L3 cache, 3.0GHz
Intel Core i7-6900K: 8 cores, 16 threads, 20MB L3 cache, 3.3GHz
Intel Core i7-6850K: 6 cores, 12 threads, 15MB L3 cache, 3.6GHz
Intel Core i7-6800K: 6 cores, 12 threads, 15MB L3 cache, 3.4GHz

All of these processors will have a Turbo clockspeed, though information about this is unavailable. All socket LGA2011-v3 CPUs should be compatible with existing X99 Express chipset motherboards.

As far as leaks go, it seems particularly credible to us.  No word of price or release dates yet though.



Is Intel Giving Braswell A New Life?

November 18, 2015 by Michael  
Filed under Computing

Intel is refreshing its embedded “Braswell” lineup of Celeron N3000, N3050, N3150 and Pentium N3700 systems-on-a-chip.

Details and model numbers of the SoCs were spotted by spotted by CPU World in a Product Change Notification.

It looks like the new processors will have increased burst frequency for better CPU and GPU performance.

Celeron and Pentium N3xxx SoCs are based on C core stepping, and it seems that Intel is replacing this with D-stepping. The chips will have the numbers N3060, N3160 and N3710. The integrated graphics unit will be rebranded to HD Graphics 405 on the Pentiums, and to HD Graphics 400 on the Celerons.

D-stepping chip samples will appear in a couple of weeks with the first production chips shipped on January 15, 2016.

The embedded N3000 will be refreshed too, although details on that are unavailable.

Chipzilla is planning to release new mobile and desktop models. The desktop SoCs will have a performance boost and a rebranded GPU. The TDP increased from 6 Watt to 6.5 Watt, and they will have the J3060, J3160 and J3710 product numbers.

The desktop Celeron J3060, J3160 and Pentium J3710 models are available at the end of November for samples, and mid-January of 2016 for production parts.



Tim Cook Says No To iOS Powered Laptops

November 18, 2015 by mphillips  
Filed under Computing

Apple CEO Tim Cook has again shot down the idea of following in the footsteps of rival Microsoft to develop a notebook that runs his company’s mobile operating system, iOS.

“We feel strongly that customers are not really looking for a converged Mac and iPad,” Cook told The Irish Independent, Ireland’s largest daily newspaper, in aninterview published Sunday. “Putting those two together would not achieve either. You’d begin to compromise in different ways.”

But take Cook’s comments with a grain — or more — of salt. “These are tactical communications, nothing about what they might do, or what they potentially will do,” noted Ezra Gottheil, an analyst with Technology Business Research, in a Monday interview.

Cook, who has been on a swing through Europe to meet with Irish officials about an expansion of Apple’s facility in the country, and in the U.K. to trumpet the iPad Pro, which went on sale last week, again took time to take a swipe at the competition.

“What that would wind up doing,” Cook said, referring to a notebook-slash-tablet analogous to Microsoft’s new Surface Book, “is that neither experience would be as good as the customer wants.”

In earlier interviews while in Europe, Cook had previously bashed the Surface Book, a 2-in-1 with an integrated keyboard and detachable screen that reverts to a tablet when held separately. “It’s trying to be a tablet and a notebook and it really succeeds at being neither. It’s sort of deluded,” Cook said of the Surface Book.

Cook’s stance is not new: The CEO has repeatedly said Apple had no interest in 2-in-1 devices, at one point calling tablets with keyboards akin to a Frankenstein mashup of toaster and refrigerator. That, of course, was long before Apple decided to join the market with the 12.9-in. iPad Pro and its optional Smart Keyboard.



Get Ready For Online Fraud Increase, Says Study

November 18, 2015 by mphillips  
Filed under Around The Net

As retailers and consumers gear up for the holiday shopping season, attempts by criminals to steal payment card information to commit fraud online are likely to rise, according to new research by ACI Worldwide.

The move by U.S. merchants and card issuers to switch to more secure chip cards for in-store purchases this year is likely to increase fraudulent attempts on transactions online.

The ACI research showed fraud rates by volume for transactions that don’t involve physically swiping a card have increased in 2015, with one out of every 86 transactions a fraudulent attempt compared with one out of 114 transactions in 2014.

Fraud attempt rates by volume have increased by 30 percent compared with 2014 as consumers shop with more devices online and card issuers are slower to shut down accounts after fraudulent activity.

“When it comes to fraud, 2015 is likely among the riskiest season retailers have ever seen,” said Mike Braatz, senior vice president, Payments Risk Management, ACI Worldwide. “It is critical that they prepare for a significant uptick in fraud, particularly within e-commerce channels,” he said.

ACI, which delivers electronic banking and payment solutions for financial institutions, retailers and processors around the world, said its data is based on an analysis of hundreds of millions of transactions from large global retailers between January and July 2015 compared with the same period in 2014.

The research also forecast a spike in buy online and pick up in-store attempted fraud rates.

That is expected to increase by 28 percent this holiday season as a result of chip-cards being deployed within stores and as retailers do not require consumers to re-run cards when they pick up products ordered online in store.



Russia’s Search Giant Yandex Wants EU To Investigate Google’s Android

November 17, 2015 by mphillips  
Filed under Around The Net

Russia’s dominant search site Yandex said it has asked the European Commission to investigate Google’s practices in relation to its Android mobile operating system in the European Union.

The new complaint could strengthen the case against Google, possibly giving enough ammunition to EU antitrust regulators to eventually charge the company with anti-competitive business practices, on top of accusations related to its Google Shopping service.

The formal request was filed in April 2015 and largely mirrors the Russian company’s claims against the U.S. company in a Russian anti-monopoly case that Yandex won.

Russia’s competition watchdog ruled in September that Google had broken the law by requiring pre-installation of its search application on mobile devices running on its Android operating system.

“We think that the Russian finding of abuse of dominance is instructive, and is a conclusion that can readily be adopted in other jurisdictions, including the EU,” Yandex said.

Yandex is one of the few companies to publicly complain about Android.

It joins U.S. tech firm Disconnect, Portuguese app store Aptoide, and lobbying group FairSearch whose members include Microsoft, Expedia, TripAdvisor and French price comparison site Twenga.

Yandex, which rivals Google in Turkey as well as Russia and several other former Soviet republics, said its business development in Europe would depend, among other factors, on the outcome of the European Commission’s investigation.

“We hope the European Commission … offers their help in restoring fair competition and ensuring equal opportunity to pre-install mobile applications on Android-based devices not only for Google, but also for other developers,” it said.

Yandex is ahead of Google in Russia with a search market share of around 60 percent, but it has been slow expanding abroad – a position it flagged when selling shares in a $1.3 billion initial public offering on Nasdaq in 2011.