Apple Tech Support Satisfaction Plummets

Apple customers are increasingly unhappy with the company’s technical support, which could affect the firm’s bottom line in the future, a researcher said today.

Although Apple continues to outperform rival computer makers Hewlett-Packard and Dell in overall customer satisfaction with technical support, in several areas Apple’s slippage over the last year is alarming, said Peter Leppik, CEO of Vocalabs, a Minneapolis-based company that surveys consumers after they’ve contacted customer or technical support.

“Apple is still definitely ahead of its competition, but what we are highlighting are deeper metrics that are showing negative trends,” said Leppik. “Customers are upset with the automated part of support calls to Apple, and that might be trickling into higher metrics.”

Those higher metrics Leppik referenced include the likelihood customers will return for another purchase in the future, or continue to recommend Apple products to friends and family.

In the past 12 months, consumers who said they were “very satisfied” with Apple’s technical support dropped 15 percentage points, from 73% at the mid-point of 2010 to 58% halfway through 2011, said Leppik.

The primary cause of the tumble was a turnabout in customers’ opinion of the automated section of their calls to Apple. In the last year, the percentage of those who said they were very satisfied with the quality of Apple’s automation fell 13 points to 24%. That’s a new low for Apple in Vocalabs surveys, and a whopping 28 points off the peak of 52% a year-and-a-half ago.

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ISPs Close Internet Gap

Broadband speeds on average are within 80 percent of what major Internet service providers advertise, an appreciable increase from two years ago, according to a government study.

The Federal Communications Commission studied cable, DSL and fiber-to-the-home services at 13 top U.S. broadband providers.

The FCC found Verizon Communications Inc’s fiber network was best at meeting or exceeding advertised maximum download speeds, while Cablevision Systems Corp came in last place.

Overall, the numbers were a big boost from 2009, when data indicated download speeds were often about half of Internet service providers’ (ISP) maximum advertised speeds.

“Most major ISPs are providing service close to what they’re advertising. This represents a significant improvement over the findings from two years ago when we first shined a light on this issue,” FCC Chairman Julius Genachowski said, unveiling the study’s findings at a Best Buy Co store in the District of Columbia.

During peak consumer usage hours when networks are busiest, actual download speeds varied from 114 percent to 54 percent of advertised speed among the different ISPs, the FCC said.

The complete findings of the report, its raw data and an FCC-prepared guide for consumers will be made available online. The FCC says the data will help consumers decide which Internet speed, service and provider best meet their needs.

“This report pretty well dispels the myth … that there’s a huge gap between advertised and actual speeds, and in fact we do pretty well here in the United States,” said Richard Bennett, a senior fellow at the Information Technology and Innovation Foundation.

Not everyone was impressed with the study’s findings.

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RIM Unveils New BlackBerry Torch Phones

Research In Motion on Wednesday unveiled two more powerful versions of its touchscreen BlackBerry Torch, hoping to buy time until it can introduce a radically new software package in its smartphones.

The new smartphones, along with a Bold upgrade unveiled earlier, are part of what the Canadian company called its biggest global launch ever as it seeks to claw back North American market share losses from Apple’s iconic iPhone and a slew of devices running on Google’s Android software.

The three touchscreen phones, running on the new BlackBerry OS 7, each boast an improved screen display and pack a 1.2 GHz processor from Qualcomm, the most powerful ever for a BlackBerry phone. All three devices will launch with carriers globally by the end of August, RIM said.

The browser for the new phones is 40 percent faster than the original Torch, RIM’s last major phone launch which hit shelves almost a year ago.

But since co-chief executive Mike Lazaridis has already promised “superphones” next year using the QNX-based operating system running RIM’s PlayBook tablet
computer, analysts are looking beyond the launch.

“This is a necessary product refresh in advance of the big bang that we hope and expect will happen with QNX-based phones,” said CCS Insight vice-president of research John Jackson.

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Accused Hacker Out On Bail In England

The accused ‘Topiary’, whose name is Jake Davis, was charged on Sunday and bailed by the courts yesterday. He was charged with five offences: Unauthorised access to a computer system, Encouraging or assisting offences, Conspiracy with others to carry out a Distributed Denial of Service Attack on the website of the Serious and Organised Crime Agency, Conspiracy to commit offences of Section 3 Computer Misuse Act 1990, and Conspiracy with others to commit offences of Section 3 Computer Misuse Act 1990 contrary to Section 1 of the Criminal Law Act 1977.

According to a report at the Guardian, his bail conditions are that Davis must wear an electronic tag, not access the internet, and not leave his house between 10pm and 7am.

Davis, who appeared outside court wearing sunglasses and holding a copy of “Free Radicals: The Secret Anarchy of Science” by Micheal Brooks and who allegedly authored the Rupert Murdoch is dead story that appeared on the hacked web site of the Sun newspaper, has already gained support on the internet in general and especially on Twitter.

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Is Sprint’s Future Questionable?

Sprint Nextel Corp’s shares fell sharply on Thursday as heavy subscriber losses in the second quarter called into question the strategy and outlook of the No. 3 U.S. wireless company.

Sprint had spent heavily to promote its service and better compete against larger carriers Verizon Wireless and AT&T Inc. But that strategy backfired as profit margins eroded and customer losses persisted.

The weak results overshadowed Sprint’s announcement of a $9 billion network contract with start-up LightSquared, and sent the stock tumbling to its lowest point since February before recovering a little to close down 16 percent.

Investors questioned whether Sprint would be able to meet its 2011 targets after such a disappointing showing.

“Their cost of doing business went up dramatically,” said Piper Jaffray analyst Christopher Larsen. “People have less confidence they can meet expectations.”

Sprint’s operating profit margin of 16.3 percent was well below the average Wall Street estimate of around 19 percent as the company had changed its product rebate terms in an effort to combat Verizon Wireless’ sale of the Apple Inc iPhone, and an iPhone discount at AT&T.

But the bet did not pay off as Sprint still saw defections of 101,000 net subscribers — also known as post-paid customers — compared with analysts’ expectation for losses of 15,000.

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SpyEye Poses Risk To Banking Defenses

Financial institutions are facing more trouble from SpyEye, a piece of malicious software that steals money from customers online bank accounts, according to new research from security vendor Trusteer.

SpyEye is a dastardly piece of malicious software: it can harvest credentials for online accounts and also initiate transactions as a person is logged into their account, literally making it possible to watch their bank balance drop by the second.

In its latest versions, SpyEye has been modified with new code designed to evade advanced systems banks have put in place to try and block fraudulent transactions, said Mickey Boodai, Trusteer’s CEO.

Banks are now analyzing how a person uses their site, looking at parameters such as how many pages a person looks at on the site, the amount of time a person spends on a page and the time it takes a person to execute a transaction. Other indicators include IP address, such as if a person who normally logs in from the Miami area suddenly logs in from St. Petersburg, Russia.

SpyEye works fast, and can automatically and quickly initiate a transaction much faster than an average person manually on the website. That’s a key trigger for banks to block a transaction. So SpyEye’s authors are now trying to mimic — albeit in an automated way — how a real person would navigate a website.

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RIM Cuts 11% Of Workforce

BlackBerry maker Research In Motion Ltd plans to slash approximately 11 percent of its workforce to curb costs as it struggles to compete against Apple Inc and Google Inc.

The announcement of 2,000 job cuts on Monday came a month after the Canadian company acknowledged that it would reduce headcount for the first time in a decade.

One analyst said the job cuts were slightly deeper than expected but were key to RIM’s recovery from a slump triggered by product delays and intense competition from Apple’s iPad and iPhone as well as devices powered by Google’s Android software.

RIM’s U.S.-listed stock, already near multi-year lows, was down as much as 2 percent before the market opened. It was trading down 1.8 percent at $27.40 on the Nasdaq
just before the open.

“This is not totally unexpected. I think the size of (the cuts) is a little bit bigger than what they were intimating before,” said Jefferies & Co analyst Peter Misek. “I think this is obviously realigning the cost structure to a new growth, or sales, reality.”

RIM said one-time charges from the job cuts were not included in its outlook for the second quarter or for the full year, and it would explain the financial impact of the cuts when it reports second quarter results on September 15.

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IBM Debuts Fast Storage System

With an eye toward helping tomorrow’s data intensive organizations, IBM researchers have developed a super-fast storage system capable of scanning in 10 billion files in 43 minutes.

This system easily bested their previous system, demonstrated at Supercomputing 2007, which scanned 1 billion files in three hours.

Key to the increased performance was the use of speedy flash memory to store the metadata that the storage system uses to locate requested information. Traditionally, metadata repositories reside on disk, access to which slows operations.

“If we have that data on very fast storage, then we can do those operations much more quickly,” said Bruce Hillsberg, director of storage systems at IBM Research Almaden, where the cluster was built. “Being able to use solid-state storage for metadata operations really allows us to do some of these management tasks more quickly than we could ever do if it was all on disk.”

IBM foresees that its customers will be grappling with a lot more information in the years to come.

“As customers have to store and process large amounts of data for large periods of time, they will need efficient ways of managing that data,” Hillsberg said.

For the new demonstration, IBM built a cluster of 10 eight-core servers equipped with a total of 6.8 terabytes of solid-state memory. IBM used four 3205 solid-state Storage Systems from Violin Memory. The resulting system was able to read files at a rate of almost 5 GB/s (gigabytes per second).

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An Apple/Hulu Hookup In The Works?

Apple Inc is in very preliminary talks to join the bidding for Hulu, the online video site that Walt Disney Co, News Corp and its other owners have put up for sale, Bloomberg cited two anonymous sources as saying.

Apple has begun initial discussions that may eventually lead to an acquisition, Bloomberg reported without providing any more details.

An Apple spokesman declined to comment on the rumor.

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Nokia Had Horrible Quarter

Nokia has just posted very disturbing quarterly results this morning. The European smartphone giant outlook appears to be getting worse and CEO Stephen Elop has acknowledged that things will not turn around overnight.

Elop is reporting that Nokia’s operating profit is down 44 percent since Q1 and sales of mobile devices are down 23 percent consecutively. While the overall sales of mobile phones and smartphones are down, along with average selling prices.

Elop labelled the results as “clearly disappointing” and went on to say that competitive pressures are continuing. He tried to paint a somewhat more positive outlook for the rest of the year, thanks to Nokia’s clear strategy and several major product launches.

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