Intel Wants To Deliver Cheap Smartphones

Intel has revealed some additional information on the 2012 mobile strategy to its partners and it even shared some pricing guidelines for mobile products.

According to a slide entitled Mobile Landscape in 2012, Intel wants to sell mobile phones powered by its CPUs for as little as $199 to $299. This is where Intel sees a market opportunity for its phones and the prices are surprisingly low.

It also places netbooks in the same price range $199 to $299 while Intel based tablets should float between $399 and $499. Naturally more expensive options are always a reality. Tablets can go up to 12.1 inches and the starting price for these bigger machines should be $299, and in the high end the sky is the limit.

Hybrid notebooks should stay at less than $699 and this is a category where you can twist the display, slide the keyboard or even take the keyboard off from the netbook, or tablet. Think Asus’ Eee Pad Slider, Transformer, this will give you an idea of what to expect, but with x86 support. Phones, netbooks, hybrids and tablets are all based on Atom architecture.

Intel plans to sell laptops starting at $3xx and up. Probably slightly more than $300, but less than $400 is what they have in mind. Top notch notebooks based on Core i7 chips will start at less than $799 and Ultrabooks with 11-inch or larger screens might be coming down to $599 to $699. Of course, high end models will end up a lot pricier.

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Is Apple Taking Work Conditions Seriously?

Apple “takes working conditions very seriously”, the firm’s CEO Tim Cook said at a conference yesterday.

Cook was speaking at a Goldman Sachs technology conference, according to Mac Rumours. He said the company is committed to making sure working conditions are up to standard, and that Apple’s top priority will be to eliminate underage workers. He added, “If we find a supplier that intentionally hires underage labor, it’s a firing offence.”

Cook said, “Apple takes working conditions very seriously, and we have for a very long time. Whether workers are in Europe or Asia or the United States, we care about every worker.”

He added, “I’ve spent a lot of time in factories, personally. Not just as an executive. I worked at a paper mill in Alabama and an aluminium plant in Virginia. Many of our top executives visit factories on a regular basis. We have hundreds of employees based there full time.

“We are very connected to the process and we understand working conditions at a very granular level. I realize that the supply chain is complex and I’m sure that you realise this.

“The issues around it are complex. Our commitment is simple: every worker has the right to a fair and safe work environment, free of discrimination, where they can earn competitive wages and they can voice their concerns freely. Apple’s suppliers must live up to this to do business with Apple.

“No one in our industry is doing more to improve working conditions than Apple. We believe transparency is so very important in this area.”

Yesterday, Apple asked the Fair Labor Association (FLA) to conduct audits at Foxconn’s factories in China. In a statement, Apple said that factories in Shenzhen and Chengdu will be audited at its request. Audits have already begun.

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The U.S. Is Falling Behind

The U.S. government is losing a race in cyberspace — a social-networking race for the hearts and minds of the Internet community, a computer security expert said Wednesday.

Other countries — and many companies — are using social-networking tools to their advantage, while the U.S. government has taken tiny steps forward, said Rand Waltzman, a program manager focused on cybersecurity at the U.S.Defense Advanced Research Projects Agency (DARPA).

The Chinese government pays citizens to patrol social-networking sites and dispute negative talk about all levels of government or any aspect of Chinese life, and companies such as Dell and Best Buy are training workers to respond to complaints on Facebook and other social-networking services, Waltzman said at the Suits and Spooks security conference in Arlington, Virginia.

U.S. regulations prevent the government from undertaking similar campaigns, he said. “Any time you want to go to the bathroom, you need presidential approval,” he said.

The U.S. will not be able to protect its residents if it cannot engage in its own covert social-media operations, Waltzman said.

Waltzman told about a U.S. special forces unit in Iraq in 2009 that attacked an insurgent paramilitary group, killed 16 of the members of the group and seized a “huge” weapons cache. As soon as the U.S. unit left the scene, the Iraqi group returned, put the bodies on prayer mats, and uploaded a photograph from a cheap mobile phone, he said. The group put out a press release in English and Arabic.

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Google Goes Pay To Track

Amid widespread concern about its new privacy policies, Google is now facing additional criticism over a deal to offer users Amazon gift certificates if they open their Web movements to the company in a program called Screenwise.

Google says the program launched “near the beginning of the year,” but the company’s low-key offer was disclosed Tuesday night on the blog Search Engine Land.

Google is asking users to add an extension to the Chrome browser that will share their Web-browsing activity with the company. In exchange, users will receive a $5 Amazon gift when they sign up and additional $5 gift card values for every three months they continue to share. (Amazon is not a partner in the project.) Users must be over age 13, and minors will need parental consent to participate. The tracking extension can be turned off at any time, allowing participants to temporarily close their metaphorical shades on Google.

The company says the program will help it “improve Google products and services and make a better online experience for everyone.”

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iPhone Adds To Sprint’s Losses

Sprint Nextel posted a bigger loss, reflecting the higher costs of offering Apple Inc’s iPhone. But the loss was smaller than expected because its signed up fewer new customers than expected.

Since Sprint subsidizes the cost of some of its phone sales, its costs rise and profit dwindles the more customers it wins. But since subscriptions fell short of expectations, its loss was smaller than expected.

Sprint’s loss was 35 cents per share excluding unusual items compared with Wall Street expectations for a loss of 37 cents per share, according to Thomson Reuters.

Its profit margin based on operating earnings before interest, depreciation and amortization (OIBDA) fell to 9.5 percent from 16 percent a year earlier but beat expectations for 8.6 percent, according to eight analyst estimates Reuters compiled.

“It’s still unbelievably depressed and subscribers were below expectations,” said Roe Equity Research analyst Kevin Roe who also noted that Sprint’s targets for the full year were not particularly impressive.

The margin decline was hurt by the hefty cost of selling the iPhone.

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Samsung Plans To Go Low-End

Samsung Electronics Co, the world’s top television maker, has seen TV sales firming up so far this year and plans to launch cheaper TVs, as demand for lower-end models increase, the head of its TV business said on Wednesday.

Demand for lower-end TVs has been increasing in recent months as major South Korean retailers such as E-Mart Co introduced flat-screen models that are as much as 40 percent cheaper through alliances with small local manufacturers.

“As long as there’s demand, we’re open to get into that segment,” Kim Hyun-suk, executive vice president of Samsung’s visual display division, told reporters.

“We’ve been preparing to introduce cheap models and have been studying to optimize production costs and retail prices. Those (cheap) models will be ready for sale in one or two months.”

Samsung, the most profitable TV maker, also introduced on Wednesday its highest-end premium set that it hopes will help boost profitability, as a fragile global economy threatens to sap demand growth this year after no growth in 2010.

The ES8000 model has voice, motion and face recognition functions, as well as 3D and Internet-enabled capabilities. The models, available in sizes of between 46 and 65 inches, will go on sale from this weekend in South Korea before a global launch in March.

Kim said Samsung’s TV sales so far this year have been stronger than a year ago and demand from China remained solid.

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Satellite Phone Encryption Cracked

German researchers claim to have cracked the algorithm that secures satellite phone transmissions.

Benedikt Driessen and Ralf Hund from Ruhr University have reverse engineered the GMR-1 and GMR-2 voice ciphers used in a lot of satellite systems. These are used by, among others, government agencies and the military.

Bjoern Rupp, CEO at GSMK Cryptophone said, “This breakthrough has major implications for the military, civilians engaged on overseas operations, or indeed anyone using satellite phones to make sensitive calls in turbulent areas.”

Their report is titled “Don’t Trust Satellite Phones” and shows how someone with a “suitably programmed computer” and software radio capable of receiving satellite frequencies can hack calls. These include ones made by disaster relief agencies and the military.

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Google Ordered To Pay $660K

A Paris Court earlier this week ordered Google France and its parent company Google to pay plaintiff Bottin Cartographes 500,000 euros (about $660,000) for providing its free mapping services to companies across the country. The court also required Google to pay a 15,000 euro fine for its practice.

“We proved the illegality of (Google’s) strategy to remove its competitors,” Jean-David Scemmama, attorney for Bottin Cartographes, a company that provides mapping services to the enterprise, told the AFP in an interview earlier this week. “The court recognized the unfair and abusive character of the methods used and allocated Bottin Cartographes all it claimed. This is the first time Google has been convicted for its Google Maps application.”

According to Scemmama, Bottin has been arguing its case against Google for two years, claiming the search giant was engaging in anticompetitive practices by using its free service to take control over the online-mapping industry.

In a statement to the AFP, Google said that it will appeal the court’s decision, adding that Google Maps is still facing competition in that market.

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Hacked Companies Still Not Alerting Investors

At least a half-dozen major U.S. companies whose computer networks have been breached by cyber criminals or international spies have not admitted to the incidents despite new guidance from securities regulators urging such disclosures.

Top U.S. cybersecurity officials believe corporate hacking is widespread, and the Securities and Exchange Commission issued a lengthy “guidance” document on October 13 outlining how and when publicly traded companies should report hacking incidents and cybersecurity risk.

But with one full quarter having elapsed since the SEC request, some major companies that are known to have had significant digital security breaches have said nothing about the incidents in their regulatory filings.

Defense contractor Lockheed Martin Corp, for example, said last May that it had fended off a “significant and tenacious” cyber attack on its networks. But Lockheed’s most recent 10-Q quarterly filing, like its filing for the period that included the attack, does not even list hacking as a generic risk, let alone state that it has been targeted.

A Reuters review of more than 2,000 filings since the SEC guidance found some companies, including Internet infrastructure company VeriSign Inc and credit card and debit card transaction processor VeriFone Systems Inc, revealed significant new information about hacking incidents.

Yet the vast majority of companies addressing the issue only used new boilerplate language to describe a general risk. Some hacking victims did not even do that.

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FCC Changes Phone Policy

The U.S. Federal Communications Commission has approved an overhaul to its Lifeline program, which subsidizes telephone service for economically disadvantaged people. The goals are to save money and allow the subsidy to be applied toward broadband service.

The FCC on Tuesday voted to make several changes to the program, including the launch of a $25 million pilot program to use Lifeline for broadband. The pilot program will solicit proposals from broadband providers starting this year, the FCC said. Under the changes approved by the commission, recipients of Lifeline subsidies could use the money for bundled services, including voice and broadband packages.

In addition, the FCC set a 2012 savings target of $200 million for the program, which costs about $2.1 billion a year, and the commission will create a national Lifeline database to prevent multiple telecom carriers from receiving program support for the same consumer. Critics of the program have complained that there’s significant abuse, with recipients getting subsidies for multiple phone and mobile lines.

The FCC will also create an eligible database, using government data, focused on verifying recipients’ initial and ongoing eligibility for the program. The database should reduce the potential for fraud and cut red tape for both recipients and carriers, the FCC said.

Commissioners set a goal of saving up to $2 billion over the next three years, but Commissioner Robert McDowell, a Republican, said he doubted the FCC can achieve that goal. McDowell questioned the “assumptions and models” FCC staff used to predict the savings.

Nevertheless, McDowell voted to approve the changes. The changes will help Lifeline better fulfill its purpose of helping low-income U.S. residents stay connected, he said.

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