China Debuts Apple iPhone Knock-Off

The latest version of Apple Inc’s popular iPhone has already hit the Chinese market — the counterfeit market that is.

The ‘hiPhone 5′ is selling for as little as 200 yuan ($31) on China’s top e-commerce platform Taobao, which is owned by Alibaba Group.

But one has to pay around 800 yuan for a more “genuine” one, according to some store representatives at a mobile phone market in Shanghai.

“Look at this. It’s not the same as the 300-400 yuan ones,” Shanghai-based daily Metro Express quoted a clerk as saying, pointing to one originally priced at 850 yuan.

The ‘hiPhone 5′ is based on leaked images of the yet-to-be-launched iPhone 5 and is thinner and with less rounded edges than the existing iPhone 4, according to the newspaper. However, it is extremely light, almost like a plastic toy, like most pirated mobile phones, it said.

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VoIP Ideal Platform For Controlling Botnets

Botnets and their masters can communicate with one other by calling into the same VoIP conference call and exchanging data using touch tones, researchers demonstrated at Defcon.

This gives the botmasters — whose top goals include remaining anonymous — the ability to issue orders from random payphones and disposable cellular phones, say researchers Itzik Kotler and Iftach Ian Amit of security and risk-assessment firm Security Art.

Using phones and the public phone networks eliminates one of the prime tools bot fighters have: taking down the domains of botnets’ command and control servers, the researchers say. If the botmaster isn’t using a command and control server, it can’t be taken down.

In fact, the botmaster can communicate with the zombie machines that make up the botnet without using the Internet at all if the zombies are within a corporate network. So even if a victim company’s VoIP network is segregated from the data network, there is still a connection to the outside world.

In addition to its stealth, the VoIP tactic employs technology that readily pierces corporate firewalls and uses only traffic that is difficult for data loss prevention software to peer into. The traffic is streamed audio, so data loss prevention scanners can’t recognize patterns of data they are supposed to filter, the researchers say.

The downsides of VoIP as a command channel are that it severely limits the number of zombie machines that can be contacted at once, and the rate at which stolen data can be sent out of a corporate network is limited by the phone system. But Kotler and Amit say the connections are plenty big to send commands in.

During their demo at the conference, the pair had an Asterisk open source IP PBX stand in as the corporate PBX. A virtual machine representing a zombie computer on a corporate network called via TCP/IP through the PBX and into a corporate conference call. A BlackBerry, representing the botmaster dialed in over the public phone network to the same conference call.

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AMD Not Chasing Smartphone Market

Advanced Micro Devices is not immediately pursuing opportunities within the smartphone markets as it does not align with the company’s strength in technologies like graphics, an executive said on Monday.

Smartphones are constrained on battery, pixels and screen space, and AMD has other areas it can focus on in order to grow, said Rick Bergman, senior vice president and general manager for AMD’s product group during the Pacific Crest Securities Technology Leadership Forum in Vail, Colorado. The company sees an opportunity to apply its graphics and chip technologies to tablets, where customers are demanding better video and battery life.

“We haven’t announced any plans to go in that handheld space. We’ve got plenty of opportunities… in server, notebook and now tablets, that’s our immediate focus. But if the right circumstances come up and we can see a way to impact the market, we’ll obviously continue to look,” Bergman said.

AMD has faced criticism for not aggressively pursuing the booming smartphone or tablet markets. The company in June rushed to release its first dedicated tablet chip, called the Z-series. The chip is a low-power variant of PC chips based on the Fusion microarchitecture, which includes a graphics processor and CPU on a single chip. Based on the x86 architecture, the chip can help tablets deliver a full PC and graphics experience, the company has said.

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iPad Rivals Have Better Chance In Europe

Would-be rivals to Apple’s iPad have a better chance in Europe than they do in the United States, but they need to drop prices fast to grasp the opportunity, IT research firm Forrester said on Tuesday.

Apple’s relatively small retail presence in Europe — with 52 stores compared with 238 in the United States — offers a chance to the likes of Samsung, Acer and Research in Motion, Forrester said.

But their prices cannot yet compete with Apple, which has far larger scale in the tablet market and an efficient supply chain. Forrester said emerging challengers from China and Taiwan would likely step in soon with cheaper offerings.

“There is this opportunity for iPad challengers, but the competition is very fragmented. Competing with Apple will require a different approach from what we’ve seen so far,” said analyst Sarah Rotman Epps, the author of the Forrester report.

Apple still has the tablet-computer market almost to itself after launching the iPad a year and a half ago. It has sold close to 30 million iPads, whose prices start at about $500.

Forrester expects Apple to sell 80 percent of all consumer tablets in the United States and 70 percent in Europe this year.

It expects 2011 worldwide tablet sales to reach 48 million units, with half of those sold in the United States, 30 percent in Europe, 15 percent in Asia and 5 percent in Latin America.

Forrester surveyed almost 14,000 online adult consumers in France, Germany, Italy, the Netherlands, Spain, Sweden and Britain, and also interviewed product strategists from manufacturers, telecommunications operators and retailers.

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Lightning Took Down Amazon, Microsoft Clouds

A lightning strike in Dublin on Sunday caused a power outage in data centers belonging to Amazon and Microsoft, causing the companies’ cloud services to go offline.

Lightning hit a transformer, sparking an explosion and fire which caused the power outage at 10:41 AM PDT, according to preliminary information, Amazon wrote on its Service Health Dashboard. Under normal circumstances, backup generators would seamlessly kick in, but the explosion also managed to disable some of those generators.

By 1:56 PM PDT, power to the majority of network devices had been restored, allowing Amazon to focus on bringing EC2 (Elastic Compute Cloud) instances and EBS (Elastic Block Storage) volumes back online. But progress was slower than expected, Amazon said a couple of hours later.

“We know many of you are anxiously waiting for your instances and volumes to become available, and we want to give you more detail on why the recovery of the remaining instances and volumes is taking so long,” the company wrote at 11:04 PM PDT. “Due to the scale of the power disruption, a large number of EBS servers lost power and require manual operations before volumes can be restored … While many volumes will be restored over the next several hours, we anticipate that it will take 24-48 hours until the process is completed.”

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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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HP Exec Claims Evidence Was Falsified

HP has been accused of producing “false and fabricated” evidence against a former sales executive who the firm claims stole confidential information.

Adrian Jones, who was a sales executive at HP, left the firm to join Oracle in February 2011. HP claims that Jones nabbed a load of confidential information between 10 and 11 February using a removable hard drive. Jones told the court that the hard drive was used by HP for backup and was never in his possession, saying that HP and its outside counsel have confirmed these facts.

Jones’ current employer Oracle said that the accusations leveled at its employee are simply not true, with Deborah Hellinger, a spokeswoman for Oracle telling Bloomberg, “The central allegation in HP’s employment lawsuit against Adrian Jones has turned out to be complete fiction…. If they did it knowingly then HP and their lawyers should be sanctioned. If they did it mistakenly then they simply owe Mr Jones an apology.”

HP is said to have probed Jones’ relationship with a female subordinate, for whom Jones allegedly arranged a 94 per cent pay rise and expensed travel that had no business purpose.

Jones’ case mirrors that of former HP CEO Mark Hurd who left the company after similar expense discrepances were brought to light. Hurd, a close friend of Oracle CEO Larry Ellison, then joined Oracle as co-president within weeks of leaving his post at HP.

HP and Oracle have been going at it hammer and tongs in a largely public row over Oracle’s decision to dump support for Intel’s Itanium architecture. The two companies are in various other legal battles as well, with HP claiming that Oracle had gone from being a partner to a “bitter antagonist”. We assume the next lawsuit will claim that Oracle stole HP’s lunch money and beat it up behind the bike shed, or perhaps the other way around.

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