Apple Squashes Rumors

Apple will not develop a new, inexpensive iPhone just for the sake of offering a cheaper alternative, Apple CEO Tim Cook said in a speech on Tuesday.

The company’s focus is on creating great products, and it will not make a smartphone that does not past the quality test, Cook said during a webcast from the Goldman Sachs Technology and Internet conference, which is being held in San Francisco.

“There are other companies that do that, that’s not who we are,” Cook said. “Our North Star is great products.”

Instead, the company is now dropping prices on the older iPhone models. That has been successful, and the demand for iPhone 4 models in December was greater than supply, Cook said.

“It surprised us as to the level of demand we have for it,” Cook said.

Lowering the price on older models is just one of the approaches Apple is taking to reach out to price-sensitive buyers. It’s not easy to balance quality and price, and that’s when innovation comes into play and new products could be created to meet consumer demand, Cook said.

“Sometimes you can take the issue … and you can solve it in different ways,” Cook said.

For example, the first iPod that shipped in 2001 was priced at $399, and now users can buy an iPod Shuffle for $49. There was also a big demand in the past to drop the price of Macs to under $500, and Apple tried and couldn’t do it, so it created the iPad tablet.

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Developers Gaining Interest In WP8

Developers are becoming increasingly interested in developing apps for Windows Phone and BlackBerry 10.

According to ABI Research, Android and iOS remain dominant platforms, with Android in the lead in the smartphone space and iOS dominating the tablet market.

However, developers are also focusing on Windows Phone and BB10. AI analyst Aapo Markkanen believes 45 million Windows Phone devices will be in use by the end of the year, along with up to 20 million BB10 devices. Redmond will also have 5.5 million Windows powered tablet by the end of the year.

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Blackberry Makes A Comeback

Research In Motion has hinted that it will unveil two new handsets early next month to accompany the release of its BlackBerry 10 operating system.

RIM is expected to unveil the phones at an event in New York City on Wednesday and will begin promoting BlackBerry 10 to consumers the following Sunday, Feb. 3, when it will air a TV commercial during the Super Bowl.

The sporting event attracts one of the largest TV audiences of the year in America, and companies pay millions of dollars for a 30-second advertising spot, underscoring how important it is for RIM that its new BlackBerry platform will be a hit. The same commercial will also air in Canada, RIM’s home country.

In announcing its publicity plans Friday, RIM also hinted at when the phones will be available to consumers. It said the TV spot “kicks off a week of worldwide launch activity for RIM’s BlackBerry 10 platform, along with the first two devices to run on the new platform.”

If the commercial marks the start of a weeklong buildup to the launch, that would put the North American release of the phones at roughly the start of the second week in February.

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TSMC 20nm Processors In High Demand

TSMC believes demand for next-generation 20nm chips will be even higher than demand for current 28nm products.

Speaking in a conference call, TSMC CEO Morris Chang said the volume of 20nm SoCs built next year will be greater than 28nm volume in 2012 and by 2015 it should be greater than 28nm volume in 2013.

TSMC hopes to start 20nm production in the latter part of the year. The company is constructing two new facilities at Fab 15 and it hopes to start 20nm production in both simultaneously. We could be in for a quick ramp.

TSMC will offer only one version of the 20nm process, compared to four versions of the 28nm process. This should also allow it to ramp up volume production faster, reckons Xbit Labs.

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Windows Phone Is Making Gains

Microsoft’s Windows Phone mobile operating system is slowly increasing its market share in the UK, while Apple edges closer to archival Samsung.

That’s according to the latest numbers from research firm Kantar Worldpanel Comtech, which show that Microsoft’s Windows Phone has increased its UK market share from 2.2 percent to 5.9 percent in the past 12 months. The mobile operating system is doing even better in countries such as Italy, where it boasts a 13.9 percent market share.

Dominic Sunnebo, global consumer insight director at Kantar Worldpanel Comtech said, “At the end of 2012 the global OS picture shows Android on top, but clearly the rate of growth it experienced over the past year is beginning to slow as easy wins from first time smartphone buyers begin to reduce.

“It has been far slower than Microsoft would have liked, but Windows Phone is now starting to gain respectable shares in a number of key European countries.”

“However, its performance in the Chinese and US markets remains underwhelming. As the two largest smartphone markets in the world these remain key challenges for Microsoft to overcome during 2013.”

Kantar Worldpanel Comtech has also revealed that Apple is edging closer to rival Samsung, with each firm clinging to 32 percent and 35 percent of the smartphone market, respectively. Given that Samsung had a much healthier lead this time last year, these numbers seem to suggest that Apple’s iPhone 5 has sold better than rumors had indicated. However, all will be revealed during Apple’s quarterly earnings call tomorrow.

Apple and Samsung could soon have a third challenger on their hands, though, as research also shows that Nokia’s sales are improving in the UK smartphone market. Sales of the firm’s smartphones have increased 50 percent year-on-year, putting the firm’s market share at 5.2 percent.

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Anonymous Attacks MIT

Anonymous goes after the Massachusetts Institute of Technology (MIT) website after its president called for an internal investigation into what role it played in the prosecution of web activist Aaron Swartz.

MIT president Rafael Reif revealed the investigation in an email to staff that he sent out after hearing the news about Swartz’s death.

“I want to express very clearly that I and all of us at MIT are extremely saddened by the death of this promising young man who touched the lives of so many. It pains me to think that MIT played any role in a series of events that have ended in tragedy,” he wrote.

“I have asked Professor Hal Abelson to lead a thorough analysis of MIT’s involvement from the time that we first perceived unusual activity on our network in fall 2010 up to the present. I have asked that this analysis describe the options MIT had and the decisions MIT made, in order to understand and to learn from the actions MIT took. I will share the report with the MIT community when I receive it.”

Hacktivists from Anonymous defaced two MIT webpages in the wake of the announcement and turned them into memorials for Swartz.

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Ericcson Transfers Patents

Ericsson has agreed to transfer 1,922 patents and 263 patent applications to Unwired Planet in exchange for a share in ongoing revenue that they will generate.

The transfer includes 753 U.S. patents related to 2G, 3G and LTE technologies, Unwired Planet said Thursday. Four months ago, the company owned just 200 U.S. and foreign patents, and around 75 pending patent applications.

“Our patent portfolio now extends to all layers of the telecom handset and infrastructure stack,” said Unwired Planet’s CEO Mike Mulica during a conference call. The patents cover application stores, location-based services, mobile search and mobile advertising as well as network protocols, antennas and many more topics, Mulica said.

The portfolio will continue to grow, as Ericsson has also committed to transfer a further 100 patents each year from 2014 through 2018.

Mulica said the company wants everyone who uses the patented technologies to pay a license fee. “We will use litigation when necessary,” he said.

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Broadcom Goes UltraHD

As TV manufacturers show off UltraHD TVs at CES, communications chip maker Broadcom is introducing the guts of future gateways that will be able to deliver video for those sets into viewers’ homes.

Broadcom’s BCM7445 silicon platform, announced just hours before the show opened on Tuesday morning, will be able to process incoming video from cable, carrier and satellite services that has four times the resolution of typical 1080p video offered today, according to the company.

Like the eye-catching but expensive TVs on the show floor in Las Vegas, the BCM7445 is just one of the first of many steps to consumers watching UltraHD shows at home. New content, displays and delivery technologies will all be required for the new resolution, which is also known as 4K.

Broadcom expects its chip to be in volume production by the middle of next year, in time for mainstream UltraHD TVs that will probably hit the market for the late 2014 holiday season, said Joe Del Rio, associate product line manager at Broadcom. However, service providers, which will probably be the distributors of most of the gateways built with the BCM7445, may take longer to start sending UltraHD video to their subscribers, Del Rio said.

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Passwords Continue As The Weakest Link

Passwords aren’t the only failure point in many recent widely publicized intrusions by hackers.

But passwords played a part in the perfect storm of users, service providers and technology failures that can result in epic network disasters.  Password-based security mechanisms — which can be cracked, reset and socially engineered — no longer suffice in the era of cloud computing.

The problem is this: The more complex a password is, the harder it is to guess and the more secure it is. But the more complex a password is, the more likely it is to be written down or otherwise stored in an easily accessible location, and therefore the less secure it is. And the killer corollary: If a password is stolen, its relative simplicity or complexity becomes irrelevant.

Password security is the common cold of our technological age, a persistent problem that we can’t seem to solve. The technologies that promised to reduce our dependence on passwords — biometrics, smart cards, key fobs, tokens — have all thus far fallen short in terms of cost, reliability or other attributes. And yet, as ongoing news reports about password breaches show, password management is now more important than ever.

All of which makes password management a nightmare for IT shops. “IT faces competing interests,” says Forrester analyst Eve Maler. “They want to be compliant and secure, but they also want to be fast and expedient when it comes to synchronizing user accounts.”

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Is NFC Catching On?

Near Field Communication (NFC) is steadily gaining adoption in the U.S. for sharing data and music among smartphones, but the technology faces years of slow growth as a replacement for physical wallets.

NFC will take a minimum of three more years to grab hold as a technology that enables so-called mobile wallets as a replacement for credit cards and cash in the U.S., according to a consensus of five analysts. And by “grab hold,” these analysts mean being used by only 10% of mobile phone users to make digital purchases.

Gartner analyst Avivah Litan predicts that NFC payments will hit the 10% threshold in 2015, compared to the process of SMS (texting) payments that is expected to represent 50% of mobile payment volume globally in that same year. “We’re still on the edge when it comes to NFC innovation,” Litan says. “It will take a decade before it’s mainstream across the globe.”

Dozens of new smartphones that run Android, BlackBerry and Windows, and that include an NFC chip, launched last year. But Apple notably did not put NFC in its new iPhone 5 when the phone launched in September. That move “surely had a significant detrimental impact on industry adoption of NFC,” Litan says, given Apple’s influence in the mobile market.

Apple justified the move by saying that consumers already could use its Passbook app, which shows barcodes on the display, instead of NFC. The barcodes contain information that can be scanned by optical readers to let users board planes and redeem movie tickets — tasks that Apple notes are “the kinds of things consumers need today.”

Some have criticized Apple for omitting NFC from the iPhone 5, which has led to a widespread reassessment of NFC’s immediate future, especially in the U.S.

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