Monday, 2 December 2013

iPhone 6: Sapphire screen 'tougher than concrete'


iPhone 6 with wrap-around screen design

Scratch-proof sapphire crystal screen will push up price of iPhone 6, reports suggest

LAST UPDATED AT 11:43 ON Mon 2 Dec 2013
APPLE has spent more than half a billion dollars developing a sapphire crystal screen for the iPhone 6 that won't scratch even when rubbed against concrete, according to the latest reports.
Sapphire glass is around 2.5 times more durable than Corning Gorilla Glass which is utilised in several smartphones in the market today, reports International Business Times. "The sapphire glass can simply break pieces of concrete leaving no scratches on it," it says.
Sapphire crystal is already used on the iPhone 5S, launched two months ago, but only on the rear camera's protective lens and the cover of the fingerprint-reading Touch ID button.
The material has previously been used sparingly due to its relatively high cost and the low volumes produced. Now, Apple is spending heavily to bring it into the mainstream.
Apple paid a total of $578m to GT Advanced Technologies [a sapphire crystal manufacturer] to speed up the development of its next generation, large capacity furnaces to deliver low cost, high volume manufacturing of sapphire material, claims the IBT report.
A scratch-proof screen would give the iPhone 6 a clear marketing advantage over its rival smartphones – but it is likely to come at a cost. Even before news of Apple's investment in sapphire technology broke, analysts were predicting that the next model would be more expensive.
"We see the potential for the iPhone 6 price point to move higher, to avoid the profit margin erosion that occurred when iPhone 5 launched," Chris Caso of Susquehanna Financial Group told Investors.com last week.
"When iPhone 5 was launched, Apple's phone margins declined because the new features (most notably the display) added cost to the bill of materials, yet the price point of the phone remained unchanged. Since we're expecting a host of new features in the iPhone 6 (including a larger screen), we expect the bill of materials cost of the phone to increase as well."
The new iPhone is expected to launch in the middle of next year.

iPhone 6: Wraparound concept unveiled – at a cost

27 November
iPhone fans unimpressed by the incremental changes of the 5S and 5C handsets released earlier this year are set to see the dramatic hardware upgrade they had hoped for.
Analysts and Apple-watchers alike are convinced that the iPhone 6, expected in the middle of next year, will sport a significantly larger screen - and one designer has laid down the gauntlet with a slick wraparound display.
Iskander Utebayev’s design (see video below) stretches the screen over three sides of the handset, replacing the aluminium volume controls on the side of the current iPhone with touchscreen buttons.
That raises some concern among YouTube commenters, who suggest that it would be impossible to hold the phone without unintentionally activating the side-buttons. Others worry that a glass-edged phone would be even more fragile than current models.
Even if the wraparound design proves too radical for Apple, industry analysts are confident that the next iPhone will have a bigger screen – and a bigger price-tag.
"We see the potential for the iPhone 6 price point to move higher, to avoid the profit margin erosion that occurred when iPhone 5 launched," said Christ Caso of Susquehanna Financial Group, according to Investors.com.
"When iPhone 5 was launched, Apple's phone margins declined because the new features (most notably the display) added cost to the bill of materials, yet the price point of the phone remained unchanged. Since we're expecting a host of new features in the iPhone 6 (including a larger screen), we expect the bill of materials cost of the phone to increase as well."
Apple has previously launched new products at the same price as the models they replaced, but last month it introduced a price rise with the new iPad Mini.
Forbes recently reported that the iPhone 6 may come with a “manmade sapphire crystal” screen, which would make the handset more resistant to scratches, but increase the cost.
“Imagine an Apple advertisement showing a user trying to scratch an iPhone screen with a key but unable to do so,” the publication says.” Such an advertisement will go a long ways towards countering those who claim that Apple is no longer innovating.
Apple gets more unsolicited advice from Design&Trend, which suggests that the next iPhone could be substantially bigger. That would pit it against hybrid phone-tablet devices, also known as “phablets”.
“While Apple has been hesitant to join rival Samsung in the ‘phablet’ sector of the smartphone market,” the site reports, “the company has apparently realised the vast untapped potential that lies there. One element of smartphone design Apple has repeatedly stated it will stick to, however, is the ability to hold any iPhone with one hand.”
Bloomberg reported earlier this month that the iPhone 6 would have a curved screen – which would increase the surface area without adding too much to the overall width of the handset.
The report suggested that the phone would be released in the second half of next year.

iPhone 6 'to be curved and launch next year'

12 November
APPLE'S next smartphone will have a larger, curved screen, following in the footsteps of Samsung and LG, an unnamed insider source has told Bloomberg.
The report suggests that two new iPhone models, planned for release next year, will have 4.7 and 5.5-inch glass displays - larger than the current model. The screens will curve down at the edges, the report suggested.
Apple has declined to comment on the report.
Samsung released its Galaxy Round, which has a curved screen, soon after Apple unveiled its newest iPhone models, the 5S and 5C. A few weeks later, LG also unveiled a curved handset, the G Flex.
Curved screens are said to be more durable, more comfortable to use, and better suited to watching videos and playing games, according to Sky News. They also help to reduce screen glare in bright conditions.
However, the technology is not without its doubters. "There's no proven market for a smartphone with a curved screen," reports ZDNet. "Both companies that have released a smartphone with a curved display have limited availability to South Korea."
The website adds that if Apple were to make a curved-screen handset it "would be gambling its iPhone cash cow on a fad."
Bloomberg's source said the phones were still being developed and would probably go on sale in the third quarter of 2014.
The report also suggested that future models would react differently to heavy or light touches. This pressure-sensitive technology, being developed with a supplier, is not likely to be ready for the next iPhone release, however.

iPhone 5C reviews: what the critics are saying

7 November
BEFORE the launch of the colourful new iPhone 5C, rumours of a cheaper handset had been circulating for months on technology websites.
When the new model finally arrived - alongside the higher-spec iPhone 5S - many reviewers were somewhat disappointed. We’ve trawled their reviews to find out what you need to know about Apple’s new handset.
Overview:
The iPhone 5C is very similar to its predecessor. "We joked in the office that we should just take our old iPhone 5 review, do a find and replace, and present it as our iPhone 5C review," said Mashable. But the reviewer goes on to note that "everybody loved last year's phone", so continuity is not necessarily a bad thing.
The main difference is that it comes in several colours: a funky shade of green, blue, yellow, red or white.

Wired said the colourful 5C could be an "iPhone for someone who perhaps thought until now that they didn't need an iPhone", but TechRadar says “the bright colours make the iPhone 5C look a bit childish".

The site went on: "Our green review handset for example could be mistaken for a toy phone from a distance and it doesn't exactly ooze the Apple quality we're used to seeing when unboxing an iPhone."
Camera:
The 5C's main camera is one of the many features that has remain unchanged following the upgrade, but the front-facing camera has been improved. "Although the resolution is the same, Apple gave the selfie-cam better pixels and an improved sensor to give clarity a boost in low light," Mashable reports. "It does make a difference".
Screen:
The 5C has the same four-inch display as the iPhone 5, but that’s no bad thing. As PC Pro notes, "it remains superb".

"Such a high resolution stretched across such a small area ensures text is crisp and clean, with no sign of jagged edges or pixel structure anywhere," says the reviewer.
iPhone 5C prices:
If you thought the 'C' in 5C stood for cheap, think again; the new handset still carries a weighty price tag if you want an unlocked handset, unsubsidised by a mobile network. The 16GB model is £469, while the 32GB device costs £549.

Contracts start at just over £30 per month, but as PC Pro points out the "HTC One goes for around this amount with double the storage, and far more favourable contract prices".
Software:
Every new mobile Apple device comes with the iOS7 operating system, which gets a resounding thumbs up. "iOS 7's a looker," Gizmodo says, "and the parallax effect makes you feel like you're flying through space when you open folders and apps."
Battery:
Although the battery is bigger and better, according to Gizmodo it’s still “impossible to make it through an entire day on a single charge” and “almost not even worth mentioning because it makes virtually no difference in your usage habits.”

Apple iPhone 5S reviews: what the critics are saying 18/10/13

EACH new iPhone launch provokes a deluge of reviews and commentary - and we've read all of it so you don't have to. Here are the highlights from the best iPhone 5S reviews, with all the crucial details on the new phone's design, specs and performance.
Usability:
The iPhone 5S ticks all the usability boxes and, as you'd expect with Apple, it remains effortlessly smart.
"If you want a phone that just works, then the iPhone 5S is a very good place to start," says Pocket Lint. "Apple has made it look effortless which is no simple task."
Camera:
Compared to the iPhone 5, the new iSight camera is a vast improvement and it's "not hard to literally see why," says Wired.
"Without increasing the number of megapixels (eight) for this new model, Apple has dramatically improved image quality to the extent that it makes some photographs taken on the iPhone 5 look comparatively poor," the reviewer says.
Another first for Apple is slow-motion video mode - and reviewers love it.
"This isn't the first time we've seen slow-mo capabilities," says Mashable. "But as you would expect, Apple's version is smart and easy to use."
Screen: 
A beefed-up camera is nothing without a flawless screen on which to view your works of art. The iPhone 5S has broken no new ground here - it features the same display as its predecessor - but, says TechRadar it's "still impressive".
The four-inch screen, smaller than that of most of its competitors, makes it "a great phone for people that hate the idea of being forced to live with a bigger screen they don't want," the review says.
Those who do want a bigger screen are directed towards the Galaxy S4 or the HTC One.
Design: 
"Let's face it: there's nothing really new here that's going to help you work out if the person sitting opposite you on the train is rocking an all-new phone," says TechRadar.
"That's not necessarily a bad thing," the reviewer says. "Just because it's not an 'exclusive' design, it doesn't make the iPhone 5S any less premium."
Expert Reviews is more enthusiastic. "In our opinion, the iPhone 5S is still the best looking smart-phone out there. Its neat bevelled edges are perfectly formed and the 7.3mm thick phone feels incredibly comfortable in the hand."
Tip: if you do decide to take the plunge with the 5S, make buying a case your top priority as, like the 5, it's easily scratched.
Storage: 
The 5S comes with a choice of three storage capacities: 16GB (£549), 32GB (£629) and 64GB (£709).
Unlike many of its competitors, the new iPhone models don't come with a slot for external memory, making it essential to think about which is the right handset for you.
Forbes argues that "consumers should always buy the model with the maximum memory they can afford as Apple "charge an obscene amount for additional storage."
Software:
Whether you're getting an iPhone, iPad or iPod Touch, all Apple's latest mobile devices come with iOS7, the most recent software update.
The operating system is logical and easy to navigate, according to Wired, but those who know Apple will be unsurprised to find that it can be restrictive when it comes to personalisation.
"Apple has chosen simplicity over customisability, and whether that's a good thing is down to the individual user," Wired says. "But we're a fan."
Battery:
Expert Reviews ran a power test on the 5S and found that "running at half brightness with wi-fi turned off, [the] iPhone 5S lasted 14h 31m".
They found that the 5S lasts a lot longer than the 5 on a single charge and that towards the end of the day the phone wasn't "gasping for power in quite the same way."
An improvement that'll definitely be welcomed those looking to upgrade to the 5S from a previous iPhone model.
Security:
Out of all the features of the new iPhone to get press coverage, it's the Touch iD fingerprint sensor that has received the most - good and bad.
After registering a print during the set-up, you can use that digit to unlock the phone and authorise iTunes purchases.
"If that sounds like a gimmick, it's not: it's actually a brilliant time saver and something that helps enforce security," says ExpertReviews.
Reports suggest that several other body parts will unlock the iPhone too. Nipples, noses, toes and cat paws have all been used to crack the software.
Fear not, though - you can set a pass code if you prefer a more traditional approach.
The all important verdicts
Mashable: "The iPhone 5S is, without a doubt, the best phone Apple has ever made. It's the top choice for anyone who wants a smaller phone with a high-resolution screen, formidable power and an unmatched mobile operating system.
Expert Reviews: "At first, Apple's decision to stick with the same case and screen size may have seemed like it wasn't moving forwards, but after using the phone extensively we couldn't disagree more. It's incredibly fast, beating its quad-core rivals hands down."
PC PRO: "No two ways about it, the iPhone 5S is an excellent smart-phone. Don't let anyone tell you otherwise... However, in comparison with the rest of the smart-phone market, the flagship iPhone's high ticket price is becoming increasingly tough to justify."
Pocket Lint: "In many ways Apple has released a phone for tomorrow rather than today. That's a hard sell, but it's also the exciting part."

Is iPhone 5C a 'flop'? Rumours fly as Apple cuts production 16/10/13

THE idea that Apple's budget-priced iPhone 5C is a "flop" is gathering momentum after reports the company is slashing manufacturing orders.
The Wall Street Journal reports that Pegatron and Hon Hai (the two firms that assemble the colourful smartphones) have been told to cut back on production for the final three months of the year. Pegatron was told orders would be reduced by "less than 20 per cent" and Hon Hai was informed orders would be cut by a third, the paper says.
A Hon Hai executive reportedly told the WSJ that the firm has stopped hiring additional workers to produce the iPhone 5C.
The Daily Telegraph says demand for the 5C was strong at first, particularly for the gold-coloured version. But now it has tapered off, possibly due to the fact that the 5C sells at just £62 less than the premium iPhone 5S which has a faster processor and an inbuilt fingerprint sensor.
Last week the Chinese website C Technology reported that Apple had halved production of the 5C from 300,000 devices a day to 150,000. The MacRumours website says the 5S has been outselling the 5C by a factor of "two to one" since they were launched last month.
But does all this add up to a flop? ZDNet says it's probably premature to write-off the 5C or speculate that Apple has "got its pricing policy wrong". ZDNet points out that weaker demand for the 5C is a "mixed blessing" because it confirms the iPhone 5S is a hit and the more expensive phone "packs better profits".
"Bottom line: The more Apple's iPhone mix skews to the iPhone 5S over iPhone 5C, the more money it makes with better profit margins."
ZDNet's conclusion is that it's too early to call the 5C a flop. It points out that a deal with a major carrier such as China Mobile could "change the iPhone 5C's fortunes and demand picture in a hurry".

Apple leap-frogs Coke as world's most valuable brand 30/09/13

APPLE has leap-frogged Coca-Cola to become the world's most valuable brand, according to an annual survey of leading trademarks.
The 14th annual Interbrand study named the iPhone manufacturer as best global brand, knocking Coke off the top spot it has occupied since the report was first published in 2000.
Apple's brand is now worth $98.3bn (£60bn), according to the study, an increase of 28 per cent since last year. Coca-Cola, with a value of $79.2bn (£49bn) was relegated to third place by Google, which was valued at $93.3bn (£57.8bn)
Interbrand calculates the value of each company's brand "based on a combination of the company's financial performance, its role influencing consumer choices, and how well the brand lets a company charge premium prices and deliver profits," according to CNET News.
The total value of brands in the top 100 was put at $1.5 trillion (£930bn). Technology firms, which now dominate the top end of the list, accounted for $444bn (£247.8bn) of that value.
Notable risers this year included Amazon, worth $23.6bn (£14.6bn), a rise of 27 per cent compared with last year, and Facebook, worth $7.7bn (£4.8bn), a rise of 43 per cent.
The top 10 brands:
1. Apple
2. Google
3. Coca-Cola
4. IBM
5. Microsoft
6. General Electric
7. MacDonald's
8. Samsung
9. Intel
10. Toyota

Apple's iOS7: five features you won't complain about. 25/09/2013

SINCE the launch last week of iOS7, Apple's new operating system for iPhones and iPads has been criticised for ugly wallpapers and a too-bright screen, while the new fingerprint security system has already been cracked by hackers. These snagging problems have overshadowed some of the real benefits of iOS7, says Time. Here are five of its best new features:
Change Siri's accent: She'll tell you a short story; she'll even have a go at summing up the meaning of life. In fact there's little Siri - the iPhone's digital assistant - won't do for her owner. Now with iOS7 it gets even better - you can change Siri's settings to give her a Canadian, Australian or even a United Kingdom accent, whatever that may be.
Built-in spirit-level: Apple has added a spirit level feature to iOS7, making it the most DIY-friendly update yet. Coming as part of the compass app already installed on the iPhone, it's ideal for those who like to orienteer and hang doors simultaneously.
Flashlight: You should never fall up or down the stairs again. The flashlight has often been a feature of the iPhone's competitors in the past – now it has one too.
Unwanted numbers: iOS7 carries a feature that enables you to block unwanted numbers from calling or texting you and it doesn't involve spending hours on the phone to your network provider. So whether it's your ex-partner or those PPI pests ruining your day, iOS7 can help.
Better weather: Apple has revamped the way iPhone users receive information about the weather. The updated app carries new functionality, allowing the user to study more detailed meteorological data such as humidity, chance of rain and what the temperature 'feels like', as well as a 12-hour forecast.

Fake ad plunges iPhone users into deep water 24/09/13

HARDCORE Apple fans believe the company is capable of just about anything. So when an advertisement appeared on social media sites suggesting the latest version of Apple's mobile software made iPhones waterproof, several people put the claim to the test.
Now, after a clutch of expensive smartphones were "rendered useless" by immersion in water, Sky News reports that the ad was a clever fake.
The ad claims that the installation of iOS 7 - a software upgrade released by Apple last week - installs a "smart switch" that cuts off the iPhone's power supply when it detects water. "This prevents any damage to your iPhone's delicate circuitry," the fake ad says.
Sky News points out that the bogus ad "looks remarkably similar to an authentic Apple advertisement, with the same plain white background and minimalist font and style".
It certainly fooled more than one iPhone owner. Several posted angry messages on social media today claiming they had been duped into dousing their handset.
Others found it hard to believe that anyone would mistake the ad for the real thing.
Apple has made no comment on the matter.

Apple iPhone 5S: how hackers ‘cracked’ fingerprint sensor

23/09/13

GERMAN hackers claim to have bypassed the fingerprint sensor on Apple's new iPhone 5S.
The new security feature was billed by Apple as a "convenient and highly secure way to access your phone". But just days after the iPhone 5S was released, the Chaos Computer Club (CCC), a group of hackers in Germany, claims it has cracked the security feature using "easy everyday means" - a camera, a laser printer and some wood glue.
On a blog post, they explain how they photographed the user's fingerprint from a glass surface, cleaned up the image using computer software, inverted the colours and then printed it onto a transparent sheet using a laser printer with a thick toner setting. They then smeared white wood glue into the pattern created by the toner.
Once it had set, the layer of glue was lifted from the sheet and placed onto the sensor to unlock the phone.
Frank Rieger, a spokesman for the CCC, said: "The public should no longer be fooled by the biometrics industry with false security claims."
Apple claims the sensor is better than less secure sensors because it uses a "deep-skin fingerprint". But CCC says the new technology works in the same way as any others, just at a higher resolution, and can therefore be fooled in the same way.
Security expert Graham Cluley agrees. He tells the Daily Telegraph that fingerprints are not secrets, and can easily be picked up and copied by others. "Relying on your fingerprints to secure a device may be okay for casual security - but you shouldn't depend upon it if you have sensitive data you wish to protect," he says.
Meanwhile, Forbes says it is at least more secure than a short passcode and infinitely more protective than having no passcode at all. It adds: "The public should take advantage of additional security wherever it can get it."

Two new iPhones: how California tech giant hopes to win back fans it has lost to rivals

20/09/13

APPLE fans queued up overnight outside the company's flagship stores in around the world - in fact some got in line outside the New York shop as long ago as Tuesday - for the tech giant's latest product release.
In the UK, the new iPhone 5S and 5C handsets went on sale at 8am this morning, though it should be noted that the some dealers are reporting a "frustrating" lack of stock of the 5S.
Apple has released a new iPhone every year since 2007, says The Independent. This year, for the first time, it's launching two...
Why are there two models? It's "a recognition that Apple needed to win back customers" from its main rivals, Samsung and HTC, says the Independent. The two models are designed to appeal to two different groups: high-end smartphone
addicts and customers happy with something "funkier, brighter and cheaper".
How much do they cost? The iPhone 5C is on sale in the UK at £469 for the 16GB model and £549 for the 32GB model, says the Daily Telegraph while the "main event" is the 5S, yours for £549 for the 16GB model, £629 for the 32GB model
and £709 for the 64GB.
What are the 5S's new features? The 5S uses the same chassis as last year's iPhone 5 but "crams a lot more" into it. It has a new,
super-fast A7 processor. The camera has a larger sensor and larger, more effective pixels. And for the first time the phone has a
fingerprint scanner, integral to the main button, which will unlock the phone only for its owner - though some alarmists have speculated, with tongue firmly in cheek, that this could lead to muggers cutting off fingers.
Is the 5S faster? Yes - it has a new chip, the A7, which makes navigating around apps and other screens quicker. The 5S also comes with a clever motion sensor which works out when the phone is not being carried around and saves power at those times by checking online for updates less often. All these features make the iPhone 5S "the best smartphone Apple, or anyone, has yet made" says the Independent.
What about the 5C? The cheaper model is still an improvement on the iPhone 5. It has a better front-facing camera and enjoys longer battery life. Most eye-catchingly, it comes in a choice of five bright colours - while the 5S comes only in grey or black.
What about the operating system? Both phones come with Apple's new software under the bonnet - iOS7. Released for use on previous handsets on Tuesday, the new operating system caused shared internet connections across the globe to crash as millions of eager users downloaded it.

Apple iOS 7 goes live: 'make no mistake, there will be panic' 18/09/2013

APPLE customers can finally upgrade to iOS 7 from today but technology critics have warned they might face confusion at first.
The new operating system has been hailed by the company's bosses as "the biggest change to iOS since the introduction of the iPhone". Its initial announcement in June came amid accusations that Apple had failed to innovate after the death of founder Steve Jobs. But with a platform used by hundreds of millions of people around the world, radical changes are a gamble.
"Make no mistake, there will be panic," warns Zach Epstein, technology writer for Fox News. "But it will subside quickly as users see that there's really nothing new to learn in order to use iOS 7. It looks different, very different in fact, but at the same time it's quite familiar."
While some of the iOS 7 features will only be available on the new iPhones 5S and 5C, such as the fingerprint scanner function, there are also new features for older devices.
"It's a little as if someone re-modelled a house and replaced everything from the front door to the silverware," says Harry McCracken in Time. It is so different that McCracken recommends users hold off on updating their phones until they have some free time to aclimatise themselves to "the new experience".
Users are likely to feel disorientated, agrees Darrell Etherington in TechCrunch, but many of the changes "are definitely for the best".
The new control centre feature is "incredibly useful", he says, providing quick access to commonly-used settings such as Wi-Fi, Bluetooth and media player controls.
There are more than 200 changes and the new display will make the iPhone appear bigger, with features filling the entire screen.
Siri has been upgraded, a torch has been added and, in the US, Apple customers will be able to use iTunes Radio, a free internet service featuring over 200 stations. Apps can now update automatically and the camera has a new filter feature and the ability to take Instagram-style square photographs.
It is a complete design makeover, says Stuart Miles on Pocket Lint. "A thinner font, a wider use of a colour, and a layering approach are just some of the tricks being used to give you a sense of the new."
When you first install it, you might feel like you don't have a clue what is going on any more, he says. "The colours will dazzle you, the apps will pow and pop at you, and you'll wonder why you pressed the upgrade button so quickly. But after a brief moment, the panic subsides and you'll realise that you've got an OS that makes your phone seem shiny, new and enjoyable."

Apple shares drop 5% despite launch of new iPhones 12/09/13

DESPITE launching two new phones this week, Apple's shares fell more than 5 per cent yesterday amid growing fears that the firm is unable to increase its share in emerging markets.
Analysts expected the cheaper of the two models revealed on Tuesday to target customers in developing economies, such as China and India. However, the basic 5C, which has been priced at £469, is still considered too expensive for these markets.
On Wednesday Apple shares were down by 5.4 per cent, closing at $467.7. According to The Guardian, more than $30bn was wiped off the value of the company.
Mark Luschini, chief investment strategist at Janney Montgomery Scott, told the BBC that investors were put off by the 5C's comparatively high price. "It doesn't have the same range in price that Apple's competitors have," he said.
The company has found itself unable to replicate the success it has in developed markets in the world's emerging economies, as it struggles to compete against firms such as Samsung and Huawei.
A big problem for Apple is that mobile phone providers in emerging markets tend not to subsidise handsets with contracts, making iPhones far too expensive for many. It was thought that the firm's new low-end phone would target these consumers but analysts say the 5C is still not cheap enough to entice pay as you go customers.
Alongside the 'low-end' 5C, Apple revealed the 5S – its new 'high-end' iPhone. However, the 5S's prices start at £549, making the difference between the two handsets just £80.
Apple was also criticised for failing to come to a distribution deal with China Mobile, the world's biggest phone company with nearly 700 million subscribers.
Walter Piecyk, an analyst with BTIG Research, said: "We believe Apple is foregoing a valuable and relatively easy way to return to earnings growth."
"The real question is whether Apple plans to ever go after these markets," he added, "or rather just remain a high-end phone maker."

New Apple iPhones 5S and 5C 'shift axis of the mobile world' 11/09/13

APPLE has unveiled its two new iPhones - the 5S and the 5C - and so far technology critics seem to be impressed.
The 5C, which is available in pink, blue, white, yellow or green, has been described as the "budget" model, although with a starting price of £470 it is still expensive.
The 5S costs more and has a significantly faster processor than previous iPhones, improved camera functions and a new fingerprint sensor that allows users to unlock the device and access the iTunes store without entering a password. It looks very similar to the iPhone 5 but comes in gold, silver or 'space grey'.
The 5S is "way speedy" says Greg Kumparak, mobile editor at TechCrunch. "We only poked around the operating system a little, but everything we saw was buttery smooth."
Kumparak also praises the new slow-motion feature on the camera. "We didn't have any extreme sports stars handy to bust a kickflip or two for us," he says, "but it did do a really good job of catching us waving our hands around like dweebs at 120 frames per second."
The Guardian's technology editor Charles Arthur says slow motion videos are likely to be all over Instagram and Vine in the coming years. The camera also allows for 'burst shooting', he says, taking up to 10 frames per second so the best image can be chosen.
Arthur says the fingerprint sensor is a key selling point for the 5S but he thinks the 5C will attract more buyers.
Mic Wright, the Daily Telegraph's chief tech blogger, says the two phones will "shift the axis of the mobile world and provoke even cooler products from all the big players".
Wright predicts that the 5C will be the "most popular coloured item outside of Breaking Bad's blue meth, and just as addictive", while the gold 5S will be "popular in Essex with a huge proportion of sales going to drunken The Only Way Is Essex cast members".
Will Findlater, from gadget magazine Stuff, says the 5C is "drop-dead gorgeous", proving that "plastic needn't be synonymous with cheapo".
The vibrant colours on offer will probably give the 5C a popularity boost, says Findlater, but there's no getting away from the fact it also looks a little toy-like.
"These curvy handsets are not designed to be taken into power meetings with execs wielding BlackBerry Q10s and HTC Ones," he says. "Slamming a pink iPhone 5C on the table will have you labelled a creative, a communist, a child, or all three. Make sure you prepare some withering retorts before you shell out."
Both phones go on sale on 20 September.

Tech giant set to launch budget smartphone today, but it needs a 'category-defining' device 10/09/13

APPLE will include a fingerprint scanner in the iPhone 5S, a new version of its best-selling smartphone due to be unveiled in California today.
The Wall Street Journal says placing a finger on a scanner has "long been proposed as a way to avoid the need for passwords to authenticate users of computers and other devices". If Apple offers such technology in its iPhone, others are sure to follow, the paper says.
Today's launch, scheduled to begin at 10am local time (6pm in the UK) at Apple's headquarters in Cupertino, is also widely expected to include a budget version of the iPhone aimed at emerging markets. The iPhone 5C, which will be available in a range of colours, is designed to "beat back rivals like Samsung Electronics and Huawei Technologies in markets like India and China where it is fast losing ground," reports Reuters.
While Apple stands to broaden the market for its smartphone, it also risks "diluting margins and potentially tarnishing a brand that has been linked to premium users since its 2007 inception", Reuters says.
Experts point out that Apple has not introduced a "category-defining" product since Steve Jobs unveiled the iPad in 2010. There's a chance the company may introduce a smartwatch or a "TV product" today, but it's unlikely that either product will generate the massive sales of the iPhone.
"Apple needs to demonstrate in the coming months that it has other product lines which can start to make up for slowing growth and falling margins in (the) iPhone and iPad," said Jan Dawson, chief telecoms analyst for Ovum Research. "That's a tall order."

Tech giant sends out invitations to event expected to be launch of iPhone 5C and 5S as well as iOS7 04/09/13

APPLE has sent out invitations to a 10 September product launch that most analysts expect to be the debut of two new iPhones and the latest version of its mobile operating system iOS 7.
The event, at the tech giant's headquarters in Cupertino, California next Tuesday, "should brighten everyone's day" according to the text printed on the invitation.
Apple is believed to be readying a low-cost version of its smartphone called the iPhone 5C, which will come in a range of colours, The Guardian reports.
The budget phone was originally dubbed the iPhone Mini, then the iPhone Lite, before Apple settled on 5C (C stands for colour). Estimates of the new phone's price tag in the UK have ranged from about £60 to £260.
The Guardian believes the Cupertino launch will also lift the wraps on Apple's new "flagship" handset, the iPhone 5S. It is expected to feature a fingerprint scanner, a dual-flash camera that takes better pictures and a faster processor.
Apple might also provide a glimpse of iTunes Radio, its rival to the Spotify music-streaming service, during a demonstration of iOS7, the first "major overhaul" of its mobile operating system, the Daily Mail says.
Leaked photographs purporting to show the iPhone 5C suggest it will come in yellow, blue, white and pink.
Meanwhile, the iPhone 5S will come in just two shades: a grey called 'graphite' and a pale golden colour dubbed 'Champagne'. If that's the case, Apple may find itself falling foul of the Champagne region's generic body, the Comité Interprofessionel du Vin de Champagne (CIVC), which jealously protects the name, Decanter.com suggests.
The website points out that CIVIC has successfully secured bans on the sale of a range of products seeking to use 'Champagne' in their name, including bubble bath, underwear and shoes.

Apple: why a 'naff' gold iPhone could work in India and China 

28/08/2013

WHEN the successor to the iPhone 5 is launched next month it is expected to come in three colours – black, white and gold. Although the rumour has yet to be confirmed by Apple, tech website Gizmondo believes it must be true. "Gold iPhone reports have reached that saturation point... where they can't be ignored anymore," it said.

Tech Crunch is equally confident. "Yes, there will be a gold iPhone," it said at the weekend, pointing out that gold is already the most popular "after-market" colour change (above) for people who have an iPhone and that the colour is easy to anodize onto a handset. On top of that, the colour gold is "in the midst of a renaissance".

There is also a precedent. Apple did briefly sell a gold iPod Mini, which came in a muted shade of gold that most observers described as "champagne".

Tech Crunch points out, rather desperately, that if the gold rumours turn out to be true and plans for a fingerprint scanner also come to fruition, the new iPhone could be nicknamed Goldfinger.

But most observers are agreed that the key reason for the introduction of gold phones would be to cash in on the Chinese and Indian markets.

Analyst Tim Bajarin says that a gold iPhone would be "huge" in China. "The market is driven by colours, and gold means prosperity," he told USA Today.

Quartz agrees that a gold model could score in India and China -  but will it seen 'naff' in the West? "Whether or not a gold iPhone will juice Apple's numbers in emerging markets more than it alienates them in rich countries remains to be seen."

Gizmondo does not think Apple will care too much about the phone's reception in the West - because the company is desperate to gain a bigger market share in the East. "The gold iPhone, if it exists, is Apple's love letter to China."

New Apple iPhone 'to feature biometric fingerprint scanner' 

30/07/2013
THE APPLE rumour-mill has sprung into action ahead of the anticipated launch of a new iPhone later this year, with talk that it could feature a fingerprint scanner.   The suggestion comes after an app developer spotted a string of code in the new operating system iOS7, which is currently in beta testing. It mentions "a fingerprint that changes colour during the setup process" while the line above that talks about a "photo of a person holding an iPhone with their left hand while touching the Home button with their thumb".   The developer, who is called Hamza Sood and comes from London, posted a picture of the code on Twitter along with an image of the folder in which it was found, entitled 'BiometricKitUI'.   Apple has been linked to fingerprint technology in the past but has so far failed to come up with a device that uses it. "If the rumours are true, the latest iPhone will be the first Apple product to feature such a sensor, which could be used for unlocking the homescreen or confirming identity for payment from the App Store or other outlets," reports the Daily Telegraph. "Any sensor would likely be embedded into the physical home button."   The development comes a year after Apple paid $356m to buy security company AuthenTec, which specialises in biometric technologies. Earlier this year there were reports from Taiwan that the company was trying to develop a coating material that was compatible with a fingerprint reader. It was claimed that it could even delay the launch of a new iPhone model.   The Daily Mail points out that other manufacturers already use biometrics. Motorola and Lenovo use it on some of their products while Samsung has incorporated face-recognition technology. However, Apple's entry into the market could be a game changer.   "PayPal's chief information security officer Michael Barrett claimed fingerprint scanners could spell the end of modern-day passwords and the technology would become more popular once Apple introduces it to one of its products," reported the paper.   Website ZDNet reports: "A biometric fingerprint sensor would definitely give the iPhone a leg up on the competition, at least initially." But it adds that Samsung took out a patent on a similar feature in 2012, and suggests Apple's move could "initiate another patent war".   But don't hold your breath, warns tech site Cnet. "Details inside unreleased versions of Apple's code do not always come to fruition immediately," it says. "In this case, Apple's next iPhones are expected to be a few months away, making this discovery more curious." · 

Read more: http://www.theweek.co.uk/technology/new-iphone/54965/iphone-6-sapphire-screen-tougher-concrete#ixzz2mLPzlTxE

iPhone 5s vs Nexus 5: The best iOS vs the best Android


Monday, Dec 2, 2013, 11:39 IST | Agency: DNA
The battle between iOS (iPhone and iPad) and Android users is a bitter one and if there are two devices that symbolise supremacy for each side, it is the iPhone for the iOS and the Nexus series of phones for the Android. So you can imagine the levels to which the debate has risen (or descended, depending on how you look at it) when the latest flagships on both platforms - the iPhone 5s and the Nexus 5 were released in the Indian market within weeks of each other.

And seldom have there been such contrary devices. One costs in excess of Rs 50,000, while the other has surprised many by staying in the sub-Rs 30,000 category. One exudes class, the other prides itself on being a performer. Both claim to be the flagships of their respective platforms. But which actually works better? We decided to pit the Nexus 5 against the iPhone 5s and find out which flagship sailed better, notwithstanding the massive price gap between the two devices, which we are keeping aside for the most part.

Beauty and the Beast: Who’s got the look?
In terms of appearance, the iPhone 5s literally larrups the Nexus 5. Apple’s phones have always been strong on design and the 5s continues the tradition, even while sticking to the design of the iPhone 5. The iPhone 5s is like its predecessor a mix of metal and glass and is just 7.6 mm thick and weighs a mere 112 grammes.  The Nexus 5 is not an eyesore, but  unlike the nexus 4, which came with a classy (if scratch-prone) glass back, seems more run of the mill with its plastic back. It is definitely on the thin side at 8.5mm and is not heavy at 130 grammes. It does not look bad at all, but unlike the iPhone 5s, there is little chance of its turning heads when you plonk it on the table. Both devices, incidentally, are very solidly built.
The winner: iPhone 5s by a mile.

Between the covers: The hardware question
Beauty, however prized, is skin-deep, and this is true of handsets as well as humans. Fortunately, both the Nexus 5 and the iPhone 5s come packed with some very good hardware. While the Nexus 5 comes with a full HD 4.95 inch display with a 2.26 GhZ Qualcomm Snapdragon 800 quad core processor, the iPhone 5s comes with an A7 chip with 64-bit processing architecture and a 4.0-inch retina display that is nowhere near HD territory, and yet looks brilliant. Both phones come packed with connectivity options and sensors - the Nexus 5 edges out the iPhone 5s by having NFC, the iPhone 5s however compensates by actually having a chip that handles motion-based activities and a fingerprint scanner for security. When it comes to the camera, however, the iPhone 5s pulls away - its 8.0-megapixel shooter is far superior to the one on the Nexus 5, which comes in the good rather than the great category. Neither device has expandable memory.
The winner: We would call this a tie. Both devices come with very powerful hardware - geeks will love the quad core muscle and full HD display of the Nexus 5 while more mainstream users will love the camera of the 5s and the smooth operation powered by the 64-bit chip.

Soft touch: The interface
Be it the iPhone or the iPad, Apple’s iOS devices have always come with a reputation of being intuitive and easy to use, with just one home button below the display, and very few menus. The iPhone 5s continues this trend, even though with iOS 7, the OS has got a bit more complicated than in the past. We in particular love the way in which the fingerprint scanner has been implemented, ensuring security with minimum fuss. There are no themes to worry about and all apps are a scroll or button press away. Multi-tasking too has improved significantly. The Nexus 5 on the other hand, remains a device better suited for geeks. Yes, it runs Android Kit-Kat, which is a huge improvement over the previous version and comes with icons that are very easy on the eye, and offers far more flexibility in terms of customisation and appearance - you can change themes, fiddle with icons, have live wallpapers that change according to the time of the day, and so on - but is a bit more complicated to handle than iOS. However, if you have small hands, you will love the compact frame of the iPhone 5s more than the longer Nexus 5, which is not always easy to operate with one hand.
Winner: Another tie in our book. The iPhone 5s is indeed easier to handle, but the Nexus 5  provides far more flexibility to those willing to invest time in it.

Pursuit of Appiness: Who wins?
The best interface and the greatest hardware in the world is of little use if not backed up with a good app treasury, as the likes of Microsoft and BlackBerry are discovering. This is because apps allow you to do more with a device -be it editing MS Office documents, editing video or just identifying a song playing in a cafe. While iOS and Android might seem to be running each other close in this regard when it comes to the sheer quantity of apps in their app stores, we think the iPhone 5s has a clear edge in this regard when it comes to quality and security. There are simply too many bookmarks disguised as apps and extremely risque apps floating around in Google Play (the Android app market). iPhone 5s users will also have the advantage of having more apps that try to make the most of the phone’s hardware as compared to those using the Nexus 5, who might feel that they are driving a Ferrari on a village road!
Winner: The iPhone 5s.

Get in the ring: A matter of performance
Which brings us to the matter of performance, which in our book is how the two devices work across different tasks. When it comes to stuff like browsing, social networks and gaming, the two devices are almost on an even keel, delivering excellent performance. However, when multimedia comes into the picture, the iPhone 5s pulls away, courtesy its better audio quality and camera. When it comes to battery life too, the 5s is markedly superior to the Nexus 5, which honestly struggles in this department - you will get through a day on a single charge easily on an iPhone 5s but with a Nexus 5, you will be hard pressed to get through a day without at least one recharge.
Winner: The iPhone 5s

Bottom line blues: When on a tight budget...
We finally bring price into the equation. And the Nexus 5 totally takes out the iPhone 5s in this regard. As the previous parameters show, the iPhone 5s delivers a good dollop for the dollar it charges, but at Rs 53,500, it is definitely one of the most expensive handsets in the country. In contrast, the Nexus 5 is available for Rs 28,999, which is a staggering proposition, when you consider that it more than matches most Android flagships in most departments (multimedia are battery life are Achilles Heels, we concede). It is not as if the iPhone 5s is not a great performer - I would go out on a limb and call it the best smartphone I have ever used - it is just that if one’s budget is on the tighter side (blame the recession and inflation!), the Nexus 5 is perhaps the best high-performing smartphone one can get today in terms of sheer value for money.
Winner: The Nexus 5. Easily.

In conclusion: Who’s the smartphone champ?

All of which brings us to the conclusion of this battle of smartphone flagships - which of the two phones actually is the better one. Put price aside, and the 5s seems a comfortable winner, scoring heavily over the Nexus 5 in terms of apps, ease of use and multimedia. But why on earth would one keep price aside, especially in a market that is as budget-conscious as India? And that is where the Nexus will score heavily - it is a very very good proposition for anyone looking for a phone that performs on par with some of the best devices in the world and still costs less than Rs 30, 000. Yes, we would have liked a better camera and much better battery life on the Nexus 5, but it matches all its Android counterparts on other parameters (gaming, browsing, mail, social networks, navigation, et al) and comes with the added advantage of getting updates to the OS on time - a facility most Android devices do not have. The geek crowd will also scream that Android is more flexible and open than iOS, but we think that that is a bit of a double-edged sword as it lets a lot of sub-standard apps into the Android market - iOS still remains more secure and reliable, if restrictive, in terms of app quality. Still, if you are the type that likes to keep changing the look and feel of your device or cannot do without the latest Android edition on your phone, the Nexus 5 is as good as it gets.

In the end, it is, as with so many things in life, all about the money, if one has no strong loyalties. If you are in the market for a high quality smartphone and money is not an issue, go buy the iPhone 5s. If you cannot go beyond Rs 30,000, grab the Nexus 5. You are unlikely to be disappointed in either case.

Apple, Inc. valuation passes $500 billion, half the market cap imagined last year


Despite reaching a new peak share price for 2013 that pushed Apple's market capitalization above $500 billion, the company's valuation remains where it was in the spring of 2012, at a time when analysts were predicting Apple's market cap would soon double.
AAPL 2008-2013


In April 2012, analysts Gene Munster of Piper Jaffray and Brian White of Topkea Capital Markets had both set price targets envisioning Apple reaching $1000 per share within the year, a price that would have pushed the company very close to a one trillion dollar valuation.

Apple surpassed analysts' estimates for iPhone sales in that spring quarter, beginning an upward stock trajectory for 2012 that peaked in September 2012 at around $700.

2012 AAPL peak not irrational



In August, White described Apple's rise as particularly worthy of note because other companies that had reached such a high valuation, including Microsoft, Cisco and Intel, had only done so after achieving dominance in their respective markets.

Unlike Microsoft's 90 percent market share among PCs at its market cap peak, or the 80 percent share Intel held in PC CPUs, or the 70 percent share of networking products Cisco held, Apple's share of PCs remained at just 4.7 percent, and the company's share of smartphones was figured to be at 64.4 percent, according to numbers from IDC. That indicated plenty of room for future growth.

White also contrasted other companies that had reached $500 billion valuations, including General Electric, Exxon-Mobile, Cisco, Intel and Microsoft, as having fat price-to-earning ratios of over 60 times, compared to Apple's ratio of just 10.7 times its estimated 2013 earnings.

However, just one month later Apple shares began crashing to earth, dropping over 20 percent to lose $142 per share by the end of the year. Despite continued record sales and the wildly successful launch of both iPhone 5 and the new iPad mini, Apple's shares remained weak as pundits drew attention to new competition from Android led by Samsung.

Analysts and investors quickly changed direction in their outlook for Apple, guiding the company's valuation sharply downward throughout 2013, reaching lows in April and June below $400 that paved the way for a huge buyback program.

The AAPL iPhone crash of 2008



Apple's stock whiplash of 2013 was not nearly as dramatic as its bipolar meltdown in 2008. At the beginning of that year, Steve Jobs admonished employees to "hang in there," writing, "our stock is being buffeted around by factors a lot larger than ourselves."

Jobs added, "I continue to believe that our fundamentals - our remarkable people, our clear and focused strategy, our new product pipeline, our 200+ retail stores, our $18 billion of cash in the bank with no debt, etc., will serve us well in the coming months and years."

Over the winter of 2007, the first holiday season of iPhone, the company's shares had plummeted from highs near $200 to a low of $119 within two months. Shares then recovered by the end of May only to crash back to $82 by November. The insanity of Apple's 2008 valuation roller coaster is particularly noteworthy in hindsight, given the uniqueness of the iPhone as an unquestionably innovative and profitable product with tremendous growth potential.

AAPL 2008


Throughout 2013, it was new concerns about innovation, growth and sustained profitability that dogged the company's valuation. Apple's shares haven't dropped as dramatically this year as in 2008, but wild shifts have involved far larger swings in dollar scale.

Between its January high point of $549 to the recent close at $556, Apple shares have lost and regained over $150 billion in market valuation, more than Apple's entire peak valuation in 2008 and nearly twice as large as investors had priced the company as being worth by the end of 2008.

AAPL vs GOOG



When Apple reached $700 last year, it coincided with Google's stock reaching the same share price (although Google has far fewer shares outstanding, resulting in a lower total market capitalization). Since then, while Apple plunged below $400 and has since recovered to $550, Google's shares have reached above $1060.

Apple's market cap is still much higher than Google's (just above $500 billion compared to $354 billion). However, if Apple had tracked a similar share price trajectory as Google over the past year, its market cap would now be over $950 billion, right where analysts had been predicting Apple would go.

Apple's poor performance relative to Google over the past year is only observable when constraining the view to 2013, a year that so far has only registered a flat chart for the world's most valuable and by far the most profitable computer and phone vendor. Backed out to five years, Apple has performed nearly twice as well as Google.

AAPL GOOG


After punishing Apple with wild swings and a tremendous net loss of valuation (twice!) in 2008, the market more than doubled the company's valuation in 2009, setting a upward trend that, ignoring the surge of 2012 and its slump in 2013, points straight forward toward a short term destination of $600.

The other difference between Apple and Google is that Apple has bought back billions of dollars worth of its outstanding shares over the past summer, dropping the company's share count from a high of 940 million shares last September to just under 900 million shares today.

Rather than buying back shares, Google has been issuing new ones, growing from around 328 million shares last September to today's peak of over 334 million. At a share price of $1060, Google's extra 5.5 million shares have invented over $5.8 billion out of thin air, at the expense of the dilution of value of its shareholders.

And of course, Apple has also paid out over $10 per share in dividends over the past year, while Google has no dividend.

Overall, this seems to indicate that the confidence analysts placed in Apple's fundamentals at the beginning of 2012 was correct, and its impact on the company's actual share price was simply delayed by a misinformed, year long ripple of irrational trading behavior, as was clearly the case in 2008.

Apple Inc. (AAPL) And Samsung’s ‘Profit Trap’

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Apple Samsung
In my post on Apple & Samsung’s Profit Trap, I had explained how profit share was a flawed metric for gauging the long-term health of a company or platform. I had also detailed the perils of relying on a premium hardware strategy. While this post generated a lot of discussion, the mechanics of the “profit trap” still seem to be poorly understood. The goal of this post is to identify the primary customer segments and regions that could signal a shift in the basis of competition.
For the purpose of this discussion, let’s restrict our analysis to the premium smartphone market, specifically Apple Inc. (NASDAQ:AAPL)’s iPhone and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s flagship Galaxy devices.

Identity vs. Utility: The Difference between Most and Least Profitable Customers

 Identity vs Utility
Before we begin, we need a clear understanding of the characteristics of Apple and Samsung’s most and least profitable (or valuable) customers. Their most profitable customers — (1) are extremely brand loyal, (2) buy the highest priced device SKUs/variants, and (3) upgrade frequently (possibly with every product refresh) and own multiple devices from the brand across product categories. These customers are also likely to be more engaged with the ecosystem, but this is a secondary benefit because of the limited size of this population. In other words, these customers are more identity-focused and than utility-focused. Unfortunately, most analysis on the premium smartphone market begins and ends with this segment.
Their least profitable customers (or potential customers) — (1) are not particularly brand loyal, (2) buy lower priced device SKU/variants, and (3) do not upgrade frequently and are just looking for a “good enough” device. In other words, these customers are more utility-focused than identity-focused. The remaining (mainstream) customers would be distributed across this identity-utility continuum. The least profitable, utility-focused customers are also the harbingers for a permanent shift in the basis of competition. Since their (limited) needs are met first, they are the first group of customers to begin valuing other attributes (price, flexibility of choice, etc.).
The proportion of least profitable customers in a market depends on price parity between brands, i.e. if an iPhone/Galaxy is priced at roughly the same level as other smartphones, then it would draw a higher proportion of less profitable customers as compared to other markets. Therefore, the distribution of most and least profitable customers is highly region-specific. Most readers are already aware of the differences in pricing between the US and European smartphone markets, for example. Based on this pattern and on Ben Thompson’s characterization of three iPhone markets, I’ve divided the premium smartphone market into three regional tiers.

Tier-1 Markets (US, Canada, Japan): Subsidized, Concealed Pricing

In these markets, the true price of a premium smartphone is concealed from customers. Postpaid customers pay the same monthly contract price irrespective of their device choice, most of which are priced from $0-$199. Unsurprisingly, these are the strongest markets for premium devices. This also means that these markets have the highest proportion of less profitable customers. However, Apple Inc. (NASDAQ:AAPL) & Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) aren’t at immediate risk in these markets because of the nature of pricing.
The biggest risk faced by premium OEMs in these markets is probably T-Mobile’s pricing model:
iPhone Sales Share by US Carrier
T-Mobile recently ended smartphone subsidies and began offering devices on payment plans instead. As a result, device prices were no longer concealed and less profitable customers bought mid-range devices instead. Of course, this risk will only become significant if other carriers follow T-Mobile’s example or if the pre-paid model gains popularity. Therefore, the risk in tier-1 markets is not immediate.

Tier-2 Markets (Europe, Australia, etc.): Subsidized, Proportional Pricing

In these markets, the price of a device is subsidized by carriers but the price of the contract varies based on the device purchased. Therefore, the proportion of less profitable customers is lower in these markets (compared to Tier-1), but still quite high on an absolute basis.
Apple  Revenue from Europe
Since pricing is proportional to actual device cost, Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) run the risk of losing customers to “good enough” rivals starting with their least profitable, utility-focused customers. Unsurprisingly, Apple’s YoY revenue growth in Europe has already slipped into flat/negative territory (we don’t have region-specific revenue data for Samsung).

Tier-3 Markets (Asia, Latin America, etc.): Upfront Pricing

In these markets, customers need to pay the full price of the device upfront and carrier subsidies (if any) kick in later in the form of refunds (as in China). These markets have the smallest proportion of least profitable customers. This is because any customer who buys a high-end device is specifically looking to spend up on a device of their choice.
Apple Revenue from APAC
Since pricing is completely transparent, Apple and Samsung face the highest risk of losing less profitable customers to “good enough” rivals. Of course, the population of these utility-focused customers is much smaller than it is in other markets. Here, again, Apple Inc. (NASDAQ:AAPL)’s YoY revenue growth has already slipped into flat/negative territory.

Identifying the Shift in Basis of Competition

Given these regional patterns, it is obvious that success in Tier-1 markets like the US and Japan is to be expected and is not very helpful in predicting long-term trends. Analysts should track Tier-2 markets closely (specifically, Europe) to watch for a shift in the basis of competition.
Once this shift occurs, premium OEMs could face the most pressure in these Tier-2 markets where the absolute size of their less profitable segments is larger. Given the smaller population of less profitable customers in Tier-3 regions, any sizable decline there would signify that the basis of competition is beginning to shift among Apple/Samsung’s mainstream customer base as well — an even more worrying sign.
This post originally appeared on Tech-Thoughts.

Akamai to Buy Cybersecurity Firm Prolexic for $370 Million


Prolexic's Business is in Technology That Thwarts Distributed Denial of Service Attacks

Deal will help Akamai provide a fuller portfolio of security services to protect customers from attacks on every level of the Internet.
Akamai Technologies Inc. agreed to buy Prolexic Technologies Inc. for about $370 million in cash, expanding its cybersecurity offerings.
Prolexic specializes in technology that guards data centers against distributed denial of service attacks, an increasingly common threat that can shut down a website by flooding its address with fake information requests. Akamai Chief Executive Tom Leighton said such attacks often overwhelm otherwise strong technology because the onslaughts are becoming bigger and less predictable.
“Scale has really been a killer for the traditional ways of defending a website,” Mr. Leighton said in an interview. “You need to stop the attack traffic close to where it’s coming from before it even gets to the data center.”
Rising demand for online content continues to drive revenue growth at Akamai, which runs a network of servers and other equipment that speed delivery of Internet content. Akamai has reported double-digit sales growth in recent years, and results in recent quarters often beat its own expectations as well as Wall Street estimates.
The company said the new Prolexic deal will help it provide a fuller portfolio of security services that can protect customers from attacks on every level of the Internet. The deal is expected to close in the first half of next year, so Akamai’s current fourth-quarter guidance remains unchanged. The acquisition is expected to be slightly dilutive to Akamai’s adjusted per-share income in the first full year after the deal is completed in the range of six cents to eight cents.
Akamai’s shares are up 8.1% so far this year.

U.S. Department of Justice gives Microsoft-Nokia deal the OK


Summary: The U.S. DOJ has given its approval to Microsoft's planned $7.2 billion acquisition of Nokia's devices and services business.
The U.S. Department of Justice (DOJ) has given its approval to Microsoft's pending acquisition of Nokia's mobile devices and services business.
dojmsnokia
The transaction got the DOJ nod on November 29, according to the Federal Trade Commission's Bureau of Competition notification on December 2.
"We look forward to the date when our partners at Nokia will become members of the Microsoft family, and are pleased that the Department of Justice has cleared the deal unconditionally," said a Microsoft spokesperson in a prepared statement.
Last month, Nokia shareholders gave their approval to the deal during an extraordinary general meeting in Helsinki. Indian authorities gave their approval to the Microsoft-Nokia deal earlier this fall.
The next hurdle for the deal will be the European Union. Antitrust regulators there are on tap to decide whether or not Microsoft's bid breaches the EU's competition rules. Reuters reported in October that the European Commission would decide by December 4 whether or not to clear the acquisition. (It can extend the review by an additional 10 business days if needed to weigh possible concessions by Microsoft if there are any concerns.)
Microsoft went public with plans to buy Nokia's devices and services business, plus license a number of its patents, for $7.2 billion in September. Microsoft officials have said they expect the transaction to be completed around the first quarter of 2014.

About

Mary Jo has covered the tech industry for 30 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Microsoft codename 'Threshold': The next major Windows wave takes shape


Summary: Microsoft's wave of spring 2015 updates to its various Windows-based platforms has a codename: Threshold.
When I blogged recently about Microsoft's plans on the operating-systems front following Windows 8.1, I mentioned a couple of "spring 2015" releases.
threshold
It turns out the Microsoft codename for that wave of deliverables is "Threshold."
A couple of my contacts have confirmed that Microsoft Executive Vice President Terry Myerson recently mentioned the Threshold codename in an internal email about plans for his unified operating-system engineering group.
If all goes according to early plans, Threshold will include updates to all three OS platforms (Xbox One, Windows and Windows Phone) that will advance them in a way to share even more common elements.
(The codename Threshold, for those wondering, derives from the planet around which the first halo ring orbited in the original Halo game launched back in 2001. Threshold joins "Cortana," Microsoft's answer to Siri, as yet another codename with its origins in the Xbox franchise.)
From what I've heard, Threshold doesn't refer to a single Windows OS -- not even the expected, converged hybrid comprised of the Windows Phone OS and Windows RT. Instead, the codename refers to the wave of operating systems across Windows-based phones, devices and gaming consoles.
The Xbox One OS, Windows 8.x OS and Windows Phone 8 OS already share a common Windows NT core. As we've heard before, Microsoft is working to deliver a single app store across its myriad Windows platforms. Company officials also are laboring to make the developer toolset for all three of these platforms more similar.
But Threshold will add another level of commonality across Microsoft's various Windows-based platforms, sources said. With the Threshold wave, Microsoft plans to support the same core set of "high value activities" across platforms. These high-value activities include expression/documents (Office, and the coming "Remix" digital storytelling app, I'd think); decision making/task completion (Bing, I'd assume); IT management (Intune and Workplace Join, perhaps?) and "serious fun."
CEO Steve Ballmer mentioned this concept of high-value activities at back in July when he announced Microsoft's cross-company reorg to make the company more focused around its new "One Microsoft" mission.
Before Microsoft gets to Threshold, the company is on track to deliver an update to Windows 8.1 (known as Windows 8.1 Update 1) around the same time that it delivers Windows Phone "Blue" (Windows Phone 8.1). That's supposedly happening in the spring 2014/Q2 2014 timeframe, from what my sources have said.
I've asked Microsoft officials if they'd confirm any of this information about Threshold. No word back so far.

iPhone 5S outsold iPhone 5c three to one in the UK



Summary: Windows Phone continues to rise as well as consumers grab the cheaper Nokia Lumia models.
Apple's iPhone 5s is proving to be a hit with UK consumers, at least compared to the cheaper iPhone 5c, but Apple's overall share of sales in the country is still less than it was a year ago.
That's according to new figures based on Kantar World Panel ComTech's consumer survey data for sales during the three months to the end of October.
Britain is a bright spot for Apple's iPhone 5s/5c release in otherwise tough conditions in Europe for Apple.
Despite record launch sales reaching nine million for the two models this September, Apple's share of quarterly smartphone sales continues to slide in Europe's big five — Great Britain, France, Germany, Italy, and Spain. A year ago iOS made up 20 percent of sales, which has fallen to 15.8 percent today, according to Kantar, leaving Windows Phone a bigger seller in Italy and about to overtake iOS in France and Spain.
Apple's falling share contrasts to gains over the year by Android and Windows Phone, which are up around five percentage points each to 70.9 percent and 10.2 percent respectively across Europe's big five.
Even in the UK, where Apple has its largest retail store count in Europe, the iOS share of sales has declined from 32.7 percent a year ago to 28.7 percent today.
While iPhone 5s sales outstrip 5c in the UK, Kantar consumer insights director Dominic Sunnebo noted that the iPhone 5c is helping draw new consumers in the US from other brands.
"Almost half of iPhone 5c owners switched from competitor brands, particularly Samsung and LG, compared with 80 percent of 5s owners who upgraded from a previous iPhone model," Sunnebo wrote.
In the case of the Nokia Lumia-dominated sales of Windows Phone devices it's the cheaper devices such as Nokia's Lumia 520 and 620 driving the platform's rise over the past year.
"In Britain, almost three quarters of Nokia Lumia sales in the latest period were low-end devices such as the Lumia 520 and 620 – a pattern that is similar across other EU markets," Sunnebo noted.
Windows Phone made up 11.9 percent of smartphone sales in the UK, up from 4.6 percent a year ago, according to Kantar. In France, Windows Phone 12.5 percent share of sales is only a whisker off iOS, which accounted for 15.9 percent of sales (down from 19.5 percent a year ago), while in Italy, Windows Phone's 16.1 percent share has already eclipsed the iOS share of 10.1 percent.  
The issue that may be helping Windows Phone and hurting Apple in Europe are the lower carrier subsidies available to consumers, particularly Germany and Italy, according to Sunnebo.

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About

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

Apple iPads Beat Early Holiday Expectations


iPads were the top-selling item at Apple, Target, and Walmart over the weekend. iPhones also sold well to holiday shoppers.
10 Best Tablets Of 2013
10 Best Tablets Of 2013
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If there was one product Black Friday shoppers coveted, it was the Apple iPad. A handful of data points from analysts and other sources suggest Apple's tablets were a big hit. The iPhone didn't do poorly, either.
Apple analyst Gene Munster of Piper Jaffray took to the Mall of America in Bloomington, Minn., over the weekend to scout out activity at the Apple Store. According to his data, traffic at the store was up 9% compared to last year, and interest in the iPad Mini with Retina Display was "better than expected." Based on Munster's observations, he believes Apple may move as many as 24.5 million tablets during the holiday quarter.
Trip Chowdry from Global Equities Research was also impressed with Apple's Black Friday performance. He visited nine different Apple stores as well as five Target stores over the weekend and claims to have spoken to at least 300 people about their holiday purchases. According to Chowdry, the 128-GB variants of both the iPad Air and iPad Mini with Retina Display were the most popular devices at Apple stores. Prices for those tablets are $799 and $699, respectively. Not cheap.
[Watch out, Apple: Low Smartphone Prices Drive Sales Growth.]
The reason for picking up the higher-capacity models: People are storing more HD movies on their tablets. The WiFi-only versions were outselling the carrier versions at a ratio of three-to-one. This is probably because the carrier versions cost $130 more than their WiFi counterparts. Everyone Chowdry interviewed who bought an iPad also bought an Apple Smart Cover for their tablet.
Apple iPad Mini.
Apple iPad Mini.
Chowdry further determined that sales of the iPhone 5s closely followed those of the iPad. AT&T's 5s outsold all the other carrier versions, followed by Verizon's, the unlocked version, and Sprint's version.
InfoScout didn't rely on direct observations to determine Apple's Black Friday success. Instead, it analyzed some 90,000 receipts from retailers, including Target and Walmart. Its data suggests that Target shoppers were a bit more frugal than those at Apple Stores. The 16-GB iPad Air, 16-GB iPad Mini, and the 32-GB iPad Air were the No. 1, No. 2, and No. 3 top sellers at Target stores. Together, these iPads totaled 18.1% of Target's in-store sales on Black Friday. Given the wide range of products sold by Target, that's a high number.
The 16-GB iPad Mini was Walmart's best-selling device on Black Friday, InfoScout said. Walmart claims it sold 1.4 million tablets between 6:00 p.m. and 10:00 p.m. on Thanksgiving evening, and it doubled up on tablet orders for the season. The remaining top five selling items at Walmart stores were Android tablets, two TV models, and laptops, demonstrating once again shoppers' interest in discounts on electronics.

China: Filmmaker Zhang Yimou flouted 'one-child' rules


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BEIJING (AP) — Famed film director Zhang Yimou and his wife violated China's strict family planning rules by having three children without approval and before they were married, local authorities said Monday.
Zhang, the director of The Flowers of War starring Christian Bale, had on Sunday admitted flouting the rules by having three children with his wife but refuted reports that he had fathered seven children.
Zhang's 25-year career has made him one of Chinese cinema's top names, Many of his films portray gritty rural life. Zhang also designed the opulent opening and closing ceremonies for the 2008 Beijing Olympics.
A family planning bureau in Wuxi city in eastern Jiangsu province said on its microblog that its investigation had found that Zhang and Chen Ting flouted family planning policies and that the case was being handled according to laws and regulations.
Reports had circulated online since May that Zhang, 62, had fathered seven children from two marriages and relationships with two other women. The People's Daily newspaper, the ruling Communist Party's mouthpiece, had reported that Zhang could face a fine of up to $26 million. People caught breaking China's family planning policy must pay a "social compensation fee" based on their annual income.
In his first response to the reports, Zhang's office issued an open letter through its verified microblog account on the Twitter-like Sina Weibo site late Sunday denying that the director had seven children but admitting that he and his wife have two sons and a daughter in violation of China's one-child limits.
Zhang and his wife "expressed their sincere apology to the public for the negative social impact that this has created," the letter said.
The letter said Zhang and his wife were willing to be investigated by the family planning committee in Chen's hometown, the eastern city of Wuxi, and would accept whatever penalty the couple might incur. It did not provide details on how the couple had been able to evade family planning authorities thus far.
The family planning office of Wuxi's Binhu district said in their online statement that the couple had had three children — in 2001, 2004 and 2006 in Beijing — without first seeking approval from family planning authorities, and out of wedlock. They obtained a marriage certificate in 2011, the statement said.
Family planning policies and the fines for breaking them vary from city to city. Some consider unmarried childbearing illegal.
The statement quoted an unnamed spokesman as saying the office hoped Zhang and Chen would continue to cooperate with family planning authorities and truthfully report their income at the time.
Zhang's office rejected reports that he had fathered more children. It said unidentified individuals with "ulterior motives" had sent people to follow Zhang's children and photograph them and that Zhang's office reserved the right to take legal action.
Known to many as China's one-child policy, the rules limit most urban couples to one child and allow two children for rural families if their firstborn is a girl. The government introduced the policy in 1979 as a temporary measure to curb a surging population, but it is still in place despite being reviled by many citizens.
Last month, the party announced that it would allow couples to have two children if one of the parents is a single child, the first substantial easing of the one-child policy in nearly three decades.
___
AP writer Louise Watt contributed to this report.

NTSB analyzing data recorders to determine cause of deadly NYC train derailment


The National Transportation Safety Board says it is analyzing data recorders taken from a commuter train that derailed in New York City Sunday morning to determine whether excessive speed, mechanical problems or human error played a role in the deadly accident.
The derailment, near the Spuyten Duyvil station in the Bronx on Metro-North's Hudson Line, caused the train's locomotive and some of its seven cars to topple over and left the lead car inches from the water. Four people died and at least 60 others were injured, according to authorities. The station is located at a sharp bend where the Hudson and Harlem rivers meet.
Earl Weener, an NTSB member, said Monday morning that a second event recorder was found in the train's front car and has been sent to Washington for analysis. The other event recorder was found earlier in the rear locomotive.
Weener said investigators hope to download information from the memory cards from that recorder on Monday. They hope it can provide information on the speed of the train, how the brakes were applied and the throttle setting.
He told The Associated Press they've already had some success in retrieving data. But the information has to be validated before it's made public. The NTSB has said it could take as many as 10 days to investigate the accident.
Investigators plan to conduct interviews Monday or Tuesday with the engineer and conductor, Weener said. He also said clues could be found from a signaling system operated by dispatchers at a central location.
New York State Gov. Andrew Cuomo said Monday on NBC's "Today" show that he thinks speed will turn out to be a factor.
"It was actually much worse than it looked," Cuomo said. "As the cars were skidding across the ground, they were actually picking up a lot of debris, a lot of dirt and stones and tree limbs were going through the cars so it actually looked worse up close," he said, calling it "your worst nightmare."
The New York Post identified the operator of the train as William Rockefeller, of Rockland County, N.Y. Citing law enforcement sources, the paper reported that Rockefeller insisted to investigators that he had tried to hit the brakes going into the Spuyten Duyvil bend, but they didn't work. The sources also described Rockefeller as a 20-year veteran of the MTA with a clean disciplinary record.
One of Rockefeller's neighbors, 52-year-old Tracy Pool, said Rockefeller was an avid motorcyclist who liked to "live on the edge."
“I wouldn’t say he’s such a speed demon," Pool said. "But he always stayed within the speed limit with his trains.”
The speed limit on the curve is 30 mph, compared with 70 mph in the area approaching it, Weener said.
One passenger, Frank Tatulli, told WABC-TV that the train appeared to be going "a lot faster" than usual as it approached the sharp curve near the Spuyten Duyvil station.
New York's Metropolitan Transportation Authority (MTA), which oversees Metro-North, warned commuters to expect crowded and delayed trains on Monday. It said that Hudson Line service would operate on a limited basis between Poughkeepsie and Yonkers, and shuttle buses would take commuters heading farther south to the 242nd St. subway station. Northbound travelers were told to take the subway to 242nd St., where the shuttle bus would take them to Yonkers. Passengers were urged to take the Harlem and New Haven lines into Grand Central Station, as the MTA said that Hudson line tickets would be honored on those lines.
Aaron Donovan, a Metro-North spokesman, said no major delays were reported during the early part of the rush hour.
"We'd like to get service up toward the end of the week," Cuomo said.
The MTA Police Department identified the deceased Sunday as Ahn Kisook, 35, of Queens, N.Y.; Donna L. Smith, 54, of Newburgh, N.Y.; James G. Lovell, 58, of Cold Spring, N.Y. and James M. Ferrari, 59, of Montrose, N.Y. Three of the dead were found outside the train, and one was found inside, authorities said. Autopsies were scheduled for Monday, the New York City medical examiner's office said.
Lovell, an audio technician for NBC's "Today" program, was traveling from his Cold Spring home to midtown Manhattan to work on the famed Rockefeller Center Christmas tree, said longtime friend Janet Barton. The tree-lighting ceremony is Wednesday night.
Eleven others were believed to be critically injured and six more were seriously injured, according to the Fire Department of New York. However, New York City Mayor Michael Bloomberg said after visiting an area hospital Sunday evening that none of the 11 appeared to have life-threatening injuries.
In their efforts to find passengers, rescuers shattered windows, searched nearby woods and waters and used pneumatic jacks and air bags to peer under wreckage.
Passengers were removed from the wreck by authorities, with dozens bloodied and scratched, holding ice packs to their heads.
"I was asleep and I woke up when the car started rolling several times,” said a bloodied Joel Zaritsky, who was on his way to New York City for a dental convention.
“Then I saw the gravel coming at me, and I heard people screaming. There was smoke everywhere and debris. People were thrown to the other side of the train."
About 150 people were on board when the train derailed, and Donovan said the railroad believed everyone aboard has been accounted for.
The derailment occurred near the Harlem River, and authorities say two cars were left lying on their sides, although none of the cars went into the nearby waterway.
“One approached the water and came close, but did not go in,” Donovan told FoxNews.com. He said a locomotive was pushing the train from behind, although the operating engineer who controlled the train was stationed in the front of the first passenger car.
Workers have started the arduous task of righting the toppled rail cars. Five passenger cars and the locomotive were back on the tracks by around 9:30 a.m.
New York Police Commissioner Raymond Kelly said there were initial concerns that people may have been ejected from the train after the crash and landed in the water. The NYPD dispatched its dive team, helicopters and canine squad and nothing was found, Kelly said.
“It’s going to be a long time before this is cleared up,” MTA spokeswoman Marjorie Anders told Fox News. “It was not a hugely crowded train,” she added.
In a statement Monday afternoon, a representative of NewYork-Presbyterian Hospital said the hospital received 18 patients due to the derailment.
"The four patients received at NewYork-Presbyterian/The Allen Hospital were evaluated, treated and released on Sunday, December 1, 2013," the statement said. "NewYork-Presbyterian/Columbia received 14 patients of which seven were evaluated, treated and released on Sunday, December 1, 2013 and seven have been admitted for further treatment. Two of the seven patients admitted remain in critical condition."
Dr. Ernest Patti, of St. Barnabas Hospital in the Bronx, told Fox News that 12 passengers were taken to St. Barnabas -- 2 were in critical condition and 10 were in stable condition.
The patients, Patti said, suffered mostly broken bones, including compound fractures where bone pierces the skin. Some suffered broken ribs, the doctor said.
Donovan said the train was an express and was not due to stop in the Spuyten Duyvil station. Sunday’s incident occurred just south of where a train ferrying garbage derailed in mid-July.
The accident was the latest mishap in a troubled year for Metro-North, which had never before experienced a passenger death during an accident in its 31-year history.
It came six months after an eastbound train derailed in Bridgeport, Conn., and was struck by a westbound train. That crash injured 73 passengers, two engineers and a conductor.
For decades, the NTSB has been urging railroads to install technology that can stop derailing caused by excessive speed, along with other problems.
A rail-safety law passed by Congress in 2008 gave commuter and freight railroads until the end of 2015 to install the systems, known as positive train control. PTC is aimed at preventing human error — the cause of about 40 percent of train accidents. But the systems are expensive and complicated. Railroads are trying to push back the installation deadline another five to seven years.
Metro-North is in the process of installing the technology. It now has what's called an "automatic train control" signal system, which automatically applies the brakes if an engineer fails to respond to an alert that indicates excessive speed.
Such systems can slow trains in some circumstances but not bring them to a halt, said Grady Cothen, a former Federal Railroad Administration safety official.
The Associated Press contributed to this report.

Paul Walker: A fan's admiration, then a journalist's


A remembrance of Paul Walker, the "Fast and the Furious" star who died in a car accident on Saturday
Fans pay tribute to actor Paul Walker at the site in Valencia where he died in a car accident. (David Buchan / Getty Images)
In high school, my bedroom wall served mainly as a canvas for displaying '90s teen heartthrobs. And somewhere between Devon Sawa and Ryan Phillippe, Paul Walker had his place.
He was certainly more than deserving of a spot with those periwinkle eyes, that chiseled jaw and just the vaguest suggestion of facial hair. He was the epitome of a California surfer bro -- a specimen not easily found in the Massachusetts suburb where I grew up.
But I still had his poster -- a 1999 Teen magazine cover, to be precise, boasting “He’s All That (AND MORE!)" -- and his movies. In his early roles in “She’s All That” and “Varsity Blues,” Walker played an unfeeling jock -- the kind of unattainable cool guy the nerdy girl pines after despite knowing better. My friends and I often spent sleepovers daydreaming about someone like Walker, thinking, “If only a guy like that really existed.”
When our paths ended up crossing over a decade later, I realized Walker was indeed a rare breed -- just not the type I’d envisioned.
PHOTOS: Paul Walker, 1973 - 2013
It was summer 2011, and “Fast Five” had just scored the biggest box office opening of the year. I started work on a story examining how the “Fast and Furious” franchise had become such a phenomenon and put in an interview request with Walker’s publicist. He agreed, and his representative passed along his cellphone number -- a rarity in a town where most actors demand their handlers make and monitor important calls.
Still, I wasn’t expecting much from the phoner. It’s typically difficult to glean anything significant from a conversation with an actor when you’re not face-to-face with them. They’re calling from a seemingly endless press day, they’re in the car, they’re making dinner. They have little interest in sharing meaningful insight with a stranger over the telephone.
When Walker answered his cell, I feared I was right: He wasn’t in the mood to chat. It was 8:45 a.m., and it sounded as if my call had served as his alarm clock.
“I’m really groggy, so I may not make sense for a bit,” he cautioned, his voice raspy.
We started to talk about his career -- one, he readily acknowledged, he probably wouldn’t have were it not for the success of the “Fast” franchise. Raised in San Clemente, he started acting when he was young but was never intensely passionate about it. He recalled signing on to a movie filming in Utah because he’d be able to snowboard in Park City. He liked the outdoors and studied marine biology at college, thinking he’d end up as a naturalist or a park ranger.
But when the producers of “The Fast and the Furious” approached him about playing undercover cop Brian O’Conner, he was excited. Growing up, he’d admired “cool guys” like Harrison Ford, Clint Eastwood and Bruce Willis -- real action heroes -- and O’Conner seemed to have a similar edge.
PHOTOS: Celebrities react to the death of Paul Walker
Plus, Walker was badly in need of a paycheck.
I was 24 years old and had just recently had a child out of wedlock,” he recalled. “I wanted to have fun and needed to put a roof over my baby’s head.”
The filmmakers behind the movie knew he was “apprehensive about being ‘the guy’” -- meaning a leading man -- so they told him “to just show up and have fun, and that alleviated some of the pressure.”
He had no idea, of course, that the franchise would spawn seven films. (Walker would star in five of them and had been in the middle of shooting his sixth when he died.) And so he didn’t do a fantastic job negotiating his salary early on, unlike costar Vin Diesel.
“I’m not the businessman that Vin is,” he said, explaining that Diesel went on to make twice as much from the “Fast” movies as he did.
“But without him,” he countered quickly, “the material wouldn’t be elevated. And without me, there’s not as much harmony.”
Despite his comparatively low paycheck, Walker genuinely seemed to love working on the “Fast” films. When he wasn’t acting, he sought out adventure, spending time racing cars with his buddies. So why not do that in movies too?
“One day, I’m going to be an old man, but in the meantime -- I love this [stuff],” he said, using more colorful language. “That’s what I’m built for.”

http://www.latimes.com/entertainment/movies/moviesnow/la-et-mn-paul-walker-death-fast-furious-20131201,0,4586870.story#ixzz2mLGrNXK2