28 Aug, 2011  |  Written by  |  under News

BEIJING – A Communist Party leader has told China's Internet companies to tighten control over material online as Beijing cracks down on dissent and tries to block the rise of Middle East-style protests.

The party secretary for Beijing, Liu Qi, issued the warning following a visit this week to Sina Corp., which operates a popular microblogging site, according to the party-published newspaper Beijing Daily.

Internet companies should "strengthen management and firmly prevent the spread of fake and harmful information," Liu was quoted as saying after the visit Monday to Sina. He said companies should "resist fake and negative information."

Communist authorities encourage Internet use for education and business but are uneasy about its potential to spread dissent, especially after social networking and other websites played a key role in protests that brought down governments in Egypt and Tunisia.

Beijing is in the midst of one of its most sweeping crackdowns on dissent in years and has detained or questioned hundreds of activists, lawyers and others.

The government tries to block access to foreign websites deemed subversive and Chinese operators of websites where the public can post comments are required to watch the material and remove any that violates censorship rules.

The government's censorship rules prompted Google Inc. to close its China search engine last year. Mainland users can see Google's Chinese-language search site in Hong Kong but access is slower and the company's China market share has shrunk.

The report on Liu's warning gave no details of how Internet companies were expected to change their management.

Employees who answered the phone at Sina referred questions to a spokeswoman who did not answer her phone.

With Liu during the visit were Sina CEO Charles Chao and Kai-fu Lee, a former boss of Google's China unit who runs a technology investment company, according to the Beijing Daily.

Chao told Forbes magazine in March that Sina's microblogging site, Weibo, has at least 100 employees monitoring content 24 hours a day. The company said in May that the number of Weibo users had passed 140 million.

Also this week, the Beijing Internet Media Association, a government-sanctioned industry group, called on its 104 member companies to police Internet content, possibly prompted by Liu's order.

"Propaganda guidance to the public should be led toward a correct direction," the appeal said, according to the Beijing Daily. "Online news should be trustworthy and should not spread rumors or vulgar contents."

Liu, the party secretary, also visited the headquarters of Youku.com Inc., a video portal, and talked with CEO Victor Koo, the report said.

China has the world's biggest online population, with 485 million Internet users as of June 30, according to the government-sanctioned China National Internet Information Center.

Meanwhile, a major Chinese Internet commerce platform, Taobao, has told merchants that use its service to stop selling virtual private network and other software that allows Web surfers to avoid government filters.

Taobao, part of Alibaba Group, said it acted after finding VPNs were being used to visit foreign websites illegally. A company spokesman said Tuesday it took the action on its own without receiving government orders.

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24 Aug, 2011  |  Written by  |  under News


The Apple Inc corporate logo is pictured on the rear side of the company's Macbook Air notebook computer in Virginia, August 10, 2011. REUTERS/Jason Reed

The Apple Inc corporate logo is pictured on the rear side of the company's Macbook Air notebook computer in Virginia, August 10, 2011.

Credit: Reuters/Jason Reed


By Clare Jim and Kelvin Soh

TAIPEI/HONG KONG |
Tue Aug 23, 2011 1:57pm EDT

TAIPEI/HONG KONG (Reuters) - Asian suppliers to Apple Inc have begun manufacturing a lower-priced version of its hot-selling iPhone 4 with a smaller 8 gigabyte flash drive, according to two people with knowledge of the matter.

The flash drive for the 8GB iPhone 4 is being manufactured by a Korean company, one of the people said Tuesday, declining to name the company. Apple currently sources its flash drives from Japan's Toshiba and South Korea's Samsung Electronics.

The sources declined to be identified because the information has not been made public.

Apple, which demands high levels of secrecy and security from suppliers and employees, declined to comment. Samsung also declined to comment.

The existing iPhone 4 was first launched in June 2010 with 16 GB and 32 GB versions, with a white version added to the lineup in April. The 8GB version is expected to launch within weeks, the sources said.

Some analysts said the cheaper 8GB iPhone 4 could help Apple boost sales in emerging markets.

"Apple may want to push into the emerging market segment where customers want to switch to low- to mid-end smartphones from high-end feature phones, which usually cost $150-200," said Yuanta Securities analyst Bonnie Chang.

"But I think for an 8GB iPhone 4 the price is hard to go below $200, so Apple will still need a completely new phone with low specifications for the emerging markets."

IPHONE 5 BY END-SEPT?

In addition to the launch of the smaller iPhone 4, Apple is targeting an end-September launch for the next-generation iPhone 5, one source said, confirming earlier reports on Apple follower blogsites and industry websites.

The new iPhone, which some call the iPhone 4S because of its largely identical appearance to the existing iPhone 4, will have a bigger touch screen, better antenna and an 8-megapixel camera, one of the people said.

The iPhone 5's two manufacturers have been told to prepare production capacity for up to 45 million units altogether, the source said. The phone will be made by Hon Hai and Pegatron, the person added.

Apple sold 20.34 million iPhones in the second quarter versus an expected 17 million to 18 million, and is increasingly looking to Asia to boost future earnings.

The company's COO Tim Cook said in July the company is particularly optimistic about Greater China.

"I firmly believe that we are just scratching the surface right now," Cook said about China. "I think there is an incredible opportunity for China there."

Asia-Pacific -- which accounts for about one-fifth of its total revenue -- and Greater China in particular, helped Apple's revenue surge 82 percent to $28.6 billion in April-June.

Overall, Asia-Pacific revenue more than tripled to $6.3 billion in the quarter.

(Additional reporting by Poornima Gupta in SAN FRANCISCO, Roger Tung in TAIPEI and Miyoung Kim in SEOUL; Editing by Lincoln Feast and Muralikumar Anantharaman)

original content on reuters

photo(AFP/Getty Images/File) - Chinese state media condemned as "irresponsible" suggestions the country was behind a massive global cyber spying campaign uncovered this week by a US computer security firm. McAfee described the sophisticated hacking effort as a "five-year targeted operation by one specific actor", without naming a country, but analysts and reports said China was the likely culprit.(AFP/Getty Images/File/Justin Sullivan)


17 Aug, 2011  |  Written by  |  under News

SAN FRANCISCO – Dell Inc.'s decision to cut its revenue forecast for the year shows how computer makers are getting pulled in two directions at once, stretching some investors' faith to a breaking point.

Corporate and government demand for PCs has been strong for the past year, helping to lift the industry after the Great Recession. But consumer demand has collapsed because of high unemployment and the lure of new gadgets such as tablet computers and smartphones.

Worrisome new economic signs and budget cuts threaten to hamper the recovery. They have cast doubt on the ability of Dell and other PC makers to lift themselves in a meaningful way.

Dell's stock fell more than 7 percent Tuesday even as the company said its net income rose 63 percent in the latest quarter. The company lowered its revenue forecast for the fiscal year ending in January. It blamed "a more uncertain demand environment" than previously envisioned and a corporate decision to focus on more profitable deals.

The downgrade followed a barrage of bad news in recent months about the computer industry's health, and it could be a harbinger of tough times for other computer makers. Hewlett-Packard Co., the world's No. 1 PC maker, reports its results Thursday.

Shaw Wu, a technology analyst with Sterne Agee, said Dell's forecast was surprisingly weak and reflects economic troubles that are leading to lower spending globally on information technology. He added that it "definitely dampens expectations" for HP.

However, Wu added that part of Dell's troubles come as another company — Apple Inc. — is benefiting with a stronger push into small and medium businesses.

Apple, a key player in inventing the PC some 30 years ago, is thriving even as the PC industry suffers because of the company's pioneering of new markets, including tablet computers with the popular iPad. Over the past week, Apple has traded places with Exxon Mobil Corp. as the most valuable company in the world.

Outside of demand for Apple's Mac computers, consumer demand for PCs has cratered, reducing growth and even leading to contraction in the U.S. and Europe. Although consumers make up only 20 percent of Dell's PC business, they remain a powerful force in the digital economy. By snapping up iPads and smartphones, consumers are demonstrating that some hot new technologies — just not PCs — can be strong sellers even in hard economic times.

Meanwhile, government austerity measures have fueled uncertainty. That is threatening to depress not just government spending but consumer spending as well.

The pressures have deepened doubts about the industry's recovery. Dell's revenue from large corporations and consumers each rose 1 percent during the quarter from last year, to $4.6 billion and $2.9 billion, respectively. But revenue from the public sector fell 3 percent to $4.5 billion.

Revenue from small- and medium-sized businesses, where analysts say Dell is losing ground to Apple, grew 5 percent to $3.7 billion. But that growth rate is lower than previous years. In the same quarter last year, revenue grew 25 percent.

Where growth is occurring, it's generally not in Western countries. Dell indicated that India and China were two of its strongest-growing regions in the three months ended July 29, its fiscal second quarter.

After the market closed, Dell said net income rose to $890 million, or 48 cents per share, primarily on the strength of corporate and government spending. Companies have been banking record profits and upgrading older PCs and servers even as hiring remains tepid.

Dell earned 54 cents per share on an adjusted basis, which beat the average estimate of 49 cents per share from analysts polled by FactSet. A year ago, Dell earned $545 million, or 28 cents per share.

But Dell's revenue fell short. Although it rose 1 percent to $15.66 billion, analysts had been expecting $15.75 billion.

The company, which is based in Round Rock, Texas, also said it now expects revenue to grow 1 percent to 5 percent, compared with its previous forecast of 5 percent to 9 percent. The new forecast translates to $62.1 billion to $64.6 billion.

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12 Aug, 2011  |  Written by  |  under News


An Apple store employee gives a class on how to use the new iPad 2 during the China launch at an Apple Store in central Beijing May 6, 2011. REUTERS/David Gray

An Apple store employee gives a class on how to use the new iPad 2 during the China launch at an Apple Store in central Beijing May 6, 2011.

Credit: Reuters/David Gray


By Poornima Gupta

SAN FRANCISCO |
Thu Aug 11, 2011 5:18pm EDT

SAN FRANCISCO (Reuters) - Apple Inc's increasingly effective patent war against rivals like Samsung Electronics may mask its real target: arch-foe Google Inc.

The maker of the iPad and iPhone has sued three of the largest manufacturers of Google's Android-based devices -- Samsung, Motorola and HTC -- for multiple patent infringements across multiple countries, pointing out "slavish copying" of design and "look and feel."

And the courts are beginning to listen: recent success in blocking sales of Samsung's latest Galaxy tablet in most of Europe and Apple's challenges to the Korean giant in Australia reflect an aggressive effort to defend its top position in the red-hot mobile market from the runaway success of Android.

While the lawsuits don't take direct aim at the operating software -- yet -- many of the features under contention are connected to and enhanced by it. Apple CEO Steve Jobs once referred to the software as being the soul of any device when he introduced the company's iOS 5 system in June.

Brian Marshall, an analyst with Gleacher & Co, said Apple is starting to flex its patent muscle with some early success but its real battle is with the Android software. "Apple doesn't really care too much about the actual OEMs."

Apple's lead is now under siege in smartphones from Google's free Android software, already the world's most-used mobile system with 550,000 devices activated every day.

Its momentum could be hampered by successful patent infringement lawsuits against adopters like Samsung.

"The way Google gets sucked into it is through the marketplace," Ron Laurie, managing director and patent consultant at Inflexion Point Strategy, said.

Any injunction won by Apple, if enforced, could mean that Android may be forced to take out the offending feature from its software design. "That would make it less attractive and people would go elsewhere," Laurie said.

Google Chairman Eric Schmidt has said rivals are responding to Android's success with lawsuits "as they cannot respond through innovations."

HIGH STAKES

At stake is a booming one-year-old market that analysts are already predicting will eclipse the decades-old PC market in a matter of years, a market that Apple fears Google's software could eventually dominate the way it now leads the smartphone arena.

The tablet market is expected to grow from under 20 million tablets last year to over 230 million in 2015.

While Apple is still the leader by far in the tablet market, research firm Informa expects tablets running Android to catch up with Apple's iPad and surpass it in 2016.

Samsung, experts say, has the best chance of attacking the iPad's commanding hold on the market. Apple's 75 percent share is expected to fall to 39 percent in 2015, when Android's will grow to 38 percent, according to Informa.

A less visible benefit of Apple waging and winning patent battles against the likes of Samsung, HTC and Motorola would be that Android may effectively no longer be free because of potential licensing costs that need to be paid to Apple.

Android's major vulnerability lies in the patent arena. Being a fairly new entrant in this market, Google hasn't built up enough intellectual property in the way Apple or Microsoft has.

"All this will end up making Android less 'free', Jean-Louis Gassee, venture capitalist and a former Apple executive, said. "But by how much? Five dollars a handset, no problem. Fifteen dollars -- then it is trouble."

Apple knows the power of licensing -- from the losing side as well. It recently forged a cross-licensing patent deal with Nokia, agreeing to make a one-time payment in hundreds of millions of dollars and pay continuing royalties.

But it is Google that had been caught off guard in the patent battle, being historically and philosophically opposed to gathering them as a defensive or offensive move. But that is changing with Google now in the hunt for key patents.

This has sparked an expensive arms race between technology giants as they try to outbid each other to stockpile on valuable patent portfolios up for grabs.

In the high-profile tussle for 6,000 wireless patents from bankrupt Nortel Networks, Google kicked off the tug-of-war with a stalking horse bid of $900 million -- far greater than anyone expected. But Apple -- allying with Microsoft, Sony and others -- swooped in to snap them up eventually for $4.5 billion, a price tag that sent shockwaves through the industry.

Google's chief lawyer, David Drummond, last week lashed out against Apple and others, accusing them of "a hostile, organized campaign against Android by Microsoft, Oracle, Apple and other companies, waged through bogus patents."

In the wake of the injunction against the Galaxy in Europe, Apple is seeking a similar ruling against Motorola's Xoom in German court. It won a preliminary ruling last month from a U.S. trade panel that HTC infringed two of Apple's patents.

But Apple is not the only one enforcing patent rights on Android mobile devices. Microsoft recently settled a suit with HTC over the Taiwanese company's Android devices. Oracle is seeking billions of dollars from Google for infringing on Java patents through its Android system.

Analysts expect Apple to continue to be the aggressor.

"It's clear that the tablet wars are going to be fought on many, many fronts," Michael Gartenberg, technology analyst with Gartner. "Clearly lots of companies are seeing opportunities here who don't plan on ceding the market to Apple, and Apple is using everything in its arsenal to defend itself."

(Reporting by Poornima Gupta; Editing by Edwin Chan, Gary Hill)

original content on reuters

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