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Sunday, May 29, 2011

Lockheed attack highlights rise in cyber espionage (AP) : Technet

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Lockheed attack highlights rise in cyber espionage (AP) : Technet


Lockheed attack highlights rise in cyber espionage (AP)

Posted: 29 May 2011 06:07 PM PDT

NEW YORK – This cyber attack didn't go after people playing war games on their PlayStations. It targeted a company that helps the U.S. military do the real thing.

Lockheed Martin says it was the recent target of a "significant and tenacious" hack, although the defense contractor and the Department of Homeland Security insist the attack was thwarted before any critical data was stolen. The effort highlighted the fact that some hackers, including many working for foreign governments, set their sights on information that has the potential to be far more devastating than accessing credit cards.

Information security experts say a rash of cyber attacks this year — including a massive security breach at Sony Corp. last month that affected millions of PlayStation users — has emboldened hackers and made them more willing to pursue sensitive information.

"2011 has really lit up the boards in terms of data breaches," said Josh Shaul, chief technology officer at Application Security, a New York-based company that is one of the largest database security software makers. "The list of targets just grows and grows."

Lockheed Martin Corp. said in a statement Saturday that it detected the May 21 attack "almost immediately" and took countermeasures.

"Our systems remain secure; no customer, program or employee personal data has been compromised," the Bethesda, Md.-based company said. Neither Lockheed Martin nor federal agencies would reveal specifics of the attack, or its origins. Company spokeswoman Jennifer Whitlow declined to comment further on the case Sunday.

This isn't the first time Lockheed Martin has been targeted. Nearly four years ago, officials revealed that hackers had breached Lockheed's Joint Strike Fighter program. Officials said no classified information about the military program was compromised, but heightened protections were added.

Analysts said the latest attack would likely spur rival defense contractors like Northrop Grumman Corp., Raytheon Co., General Dynamics Corp. and Boeing Co. to take additional steps to safeguard their systems.

"I guarantee you every major defense contractor is on double alert this weekend, watching what's going on and making sure they're not the next to fall victim," Shaul said.

Boeing declined to comment on the company's network security measures. Northrop Grumman spokesman Randy Belote said in an e-mailed statement that "we do not comment on whether or not Northrop Grumman is or has been a target for cyber intrusions," adding that the company "continuously monitors and proactively strengthens the security of our networks."

Over the past several years, the U.S. government has become more aggressive in its efforts to tackle cybercrime, developing strategies to beef up government computer systems, expand cooperation with other countries and improve coordination with the private sector. President Barack Obama declared cybersecurity a top priority shortly after taking office in 2009, setting off several government-wide reviews to develop strategies to better secure government, business and public online activity.

The Pentagon last May set up a new Cyber Command, based alongside the National Security Agency at Fort Meade, Md., in recognition of the expanding threat against the Defense Department and the need to better coordinate the nation's offensive and defensive cyber operations. The Department of Homeland Security is also slowly employing an automated system — known as Einstein 2 and Einstein 3 — to protect government agencies' computer systems.

Still, the attacks have continued. William J. Lynn III, the deputy defense secretary, said in January that more than 100 foreign intelligence agencies have tried to breach U.S. defense computer networks, largely to steal military plans and weapons systems designs.

China is often pointed to as a source of cyber attacks because a large amount of malware, or malicious software, originates from there. The government denies it is involved but experts say the high skill level of some attacks suggests the Chinese military, a leader in cyberwarfare research, or other agencies might be stealing technology and trade secrets to help state companies.

Meanwhile, attacks against corporations have been growing this year. In March, RSA, the security division of data storage company EMC, acknowledged that its computer network was hacked. The implications are serious because RSA's technology underpins the security of some of the world's most closely guarded data. RSA makes small security devices that supply constantly changing numbers that are used as secondary passwords for accessing corporate networks and email.

Last month, more than 100 million online accounts were affected by the hacking of Sony's PlayStation Network gaming service and other online services.

Companies have gotten better at detecting attacks through so-called "intrusion software" that uncovers odd behavior on networks, said Alfred Huger, vice president of development at security firm Sourcefire. As recently as five years ago, Huger said, it was difficult for companies to even determine if they were being hacked.

Even with enhanced technology to fight cyber espionage, experts say it will continue and evolve.

Rich Mogull, analyst and CEO of Phoenix-based security research firm Securosis, noted that governments and defense agencies have been spying on each other throughout history. Computers have just made it easier to do so electronically.

"This is just what countries do," he said. "It's the unfortunate reality of how the world works."

___

Baldor reported from Washington.

Green Your Tech: 5 excellent eco apps for your iPad or iPhone (Yahoo! News)

Posted: 29 May 2011 07:42 PM PDT

Apps that bring tree huggers and iPhone and iPad lovers together for the greater green are few and far between. While they might be in relatively short supply at the moment, there are a handful of green apps out there to help minimize your impact on the earth.

So, go on — green up your device. We'll give you a head start with 5 environmentally friendly apps we dug up and planted with care for you below. (Stay tuned for 6 more in our next Green Your Tech.) All of them are educational, fun, and easy to use.

1. My Carbon Footprint
Price: Free
Download: My Carbon Footprint

Brave enough to see what your carbon footprint really looks like? Then let My Carbon Footprint be the judge of how clean and green you are. Te ll the enlightening app how you live, work, eat, and entertain yourself, and it tells you how you impact Mother Earth and her fragile atmosphere. The app sends you a fresh daily crop of encouraging eco-tips and rewards you with cool badges and bragging rights on Facebook for good, green behavior. Bonus: You get to be the fearless leader of your very own virtual planet.

2. Solar Panel Advisor
Price: $1.99
Download: Solar Panel Advisor

Solar Panel Advisor is a bright, eco-educational app that lets your iPad or iPad 2 show what a solar panel could do for you. (But don't expect your tablet to charge itself or anything else by the sun, okay?) Launch the app, face your iPad in the direction of the sun, and find out how much solar power could be generated by any size solar panel under the same strength of rays. You'll learn how solar energy takes the heat off the atmosphere and your electricity bill, plus how cloud cover and precipitation impact solar energy output. People who've already unplugged and gone sustainable can use the app to remotely monitor solar panels at home and get automatic panel maintenance and cleaning reminders.

Too bad Solar Panel Advisor doesn't use the free (and pollution-free) energy of the sun to power your tablet like Voltaic's Solar Spark iPad charging case would, for example. Want more mobile solar gadget choices? Check out our hot list of sun-loving iPad and iPhone chargers and more.

3. Beekeeping Guide
Price: $2.99
Download: Beekeeping Guide

When you give honeybees a safe, pesticide-free place to buzz (and get busy), you protect the winged hexapods from Colony Collapse Disorder, help them them pollinate our landscape, and do your part to ensure the future of our food supply. Get your own hive off the ground with Beekeeping Guide, an easy-read ebook app with everything you need to know to create your own honeybee sanctuary. If New York City apartment dwellers can raise bees on their rooftops, imagine what you could do in your backyard. 

4. My Recycle List
Price: Free
Download: My Recycle List

Recycling: It's good for the bottle, and it's good for the can — that is, if you know how and where to recycle them. 1-800-Recycling.com's free app uses your iPhone's built-in GPS tech to take the guesswork out of finding recycling locations near you. Its user-friendly database lists some 120,000 locations in the United States and Canada. Search it by zip code (or with the interactive map) to locate drop-off centers. Leave it to the app to untangle which recycling facilities accept what and how, including: e-waste, plastic, metal, paper, glass, household appliances, hazardous substances, and automobile and yard waste.

E-waste recycling centers aren't the only place to eco-consciously ditch your unwanted gadgetry. Check out our insider's list of e-cycling alternatives, and turn your antiquated electronics into the other kind of green we should save

— money.

5. Control4 My Home
Price: Free
Download: Control4

Control4 My Home turns your iPad into an energy-efficiency remote for every appliance, light, and electricity-sucking device or utility in your house. You'll have total control over your home (or workplace's) computers, web cameras, and home theater, cooling, heating, and security systems, all with the swipe of a finger across your tablet's screen. There's only one catch: The app only works with existing (incredible and incredibly pricey) Control4 all-in-one energy-saving automated home systems. But you get the omnipotence to mess with the volume, music, lights, and thermostat anywhere in the house, any time — without anyone knowing it was you. Oh, yeah!

Come back for the next Green Your Tech, when we safely spill 6 more excellent eco-apps just for you and your iPad or iPhone.

[Image credit: mindfrieze]

The 5 best smartphone apps for TV lovers (Yahoo! News)

Posted: 29 May 2011 08:17 AM PDT

One-third of all smartphone owners use their phones while watching TV. Nearly half of all users spend the time logged in to social sites like Facebook and Twitter, but many are accessing one of these nifty apps that are designed with TV lovers in mind.

1. GetGlue
GetGlue is the ultimate social networking site for TV lovers. It's a check-in app that rewards you for watching shows in real time (DVR viewing doesn't count) by offering you digital stickers. Many of the stickers are only available for a short time, making them all the more collectible. Other stickers appear randomly as a reward for repeat viewings, for showing interest in a show pre-launch, or simply for being an active gluer. After you collect a bunch of virtual stickers, you can order a hard copy set from GetGlue, totally free.

When you're not actively watching TV, you can visit GetGlue.com to write reviews, Like your favorite shows and actors, and follow other gluers with similar tastes. Hook your GetGlue account to your social media accounts, and your check-ins will automatically appear as status updates on Twitter or Facebook.

2. IMDB Mobile
You know that actor? The one you've seen a million times before but you can't remember where? Grab your smartphone and look him up with the IMDB app. Look up actors by name, or use the Popular TV prompts to zero in on what's airing that evening. The IMDB app will even take you to the correct episode so you can leave a review, look at photos, and get more details about the cast and crew. You can even access pocket-sized recaps of recently aired episodes of dozens of popular shows.

3. Shazam
Music is a huge part of the TV viewing experience. These days, most TV shows use a soundtrack made up of pop, country, and rock tunes — tunes you'd like to hear again and again. That's where Shazam comes in. Simply activate the app while the song is playing on TV. Shazam will listen, then tell you the name of the song and who sang it. It'll even show you tour information, lyrics, YouTube videos and of course, a link to buy the song from iTunes.

4. TV.com Mobile
If you're a fan of CBS or The CW, you need to download the TV.com app for your smartphone. The app is loaded with high-quality video, with clips and interviews and even full episodes of shows from the CBS library that includes Showtime, CNET, and The Insider. There's also a Classic TV channel that includes full episodes of Star Trek, Beverly Hills 90201, MacGuyver and more.

Choose your favorite shows in the My TV section, and TV.com will automatically place related content into your feed for easy access. You will have to put up with pre-roll commercials, but it's worth it if you've got some time to kill while in a wifi-enabled area. This app is a hefty one, so a 3G or higher phone and a little patience is required.

5. InToNow
InToNow is another check-in system that isn't as user-friendly as GetGlue, it has a cooler interface. InToNow's secret is a speech recognition tool that listens to the show you're watching, then automatically returns the name of the program and other details. It's not faster than choosing a trending show from a GetGlue list, but it's more magical! The app also connects you easily to Netflix and IMDB, but so far, so it's more entertaining than practical.

There's nothing wrong with watching TV without your phone nearby, but these free smartphone apps will make TV viewing even more fun.

[Image credit: MiaMiaMia]

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Chinese e-commerce giant opens furniture showroom (AP)

Posted: 29 May 2011 07:55 PM PDT

BEIJING – China's e-commerce giant is stepping up its heated rivalry with bricks-and-mortar retailers with the launch of a five-story home furnishings showroom in Beijing.

Alibaba Group's Taobao, an Internet platform through which an estimated 3 percent of all retail sales in China pass, opened the showroom Friday for customers to try out sofas, tables and other big-ticket items before placing an order online with one of its merchants.

The mall is a new intrusion into the territory of China's real-world retailers by e-commerce rivals that are growing so fast some suggest they could become the country's leading retail force — its version of Wal Mart.

"The dominant retailer in China someday may be an online retailer," said Morgan Stanley analyst Richard Ji.

Taobao says its Beijing mall is aimed at overcoming a hurdle hampering the growth of China's Internet commerce even though online retailers offer significantly lower prices: Customers don't like to buy furniture and other major items without examining them in person.

"It's hard for people to shop for home furnishings if they haven't seen them," said Justine Chao, an Alibaba spokeswoman.

Alibaba Group also includes Alibaba.com, a giant business-to-business Internet commerce platform. The company, in which Yahoo Inc. owns a 43 percent stake, operates Yahoo's China arm.

Global e-commerce outfits have struggled to gain a foothold in China in the face of aggressive local competition. eBay Inc. entered China by acquiring a local company but handed over control to Chinese managers. Amazon.com operates through a local partner, Joyo.

The Chinese industry has produced success stories including bookseller Dangdang Inc., traded on the New York Stock Exchange, consumer electronics retailer 360buy.com and Vancl.com, a clothing outlet.

Industry analysts expect China's online commerce to grow at explosive annual rates of 30 to 40 percent in coming years, defying early fears it might be hurt by low rates of credit card use and rudimentary delivery services.

A key part of e-commerce's appeal is lower prices in a society where many families get by on a few thousand dollars a year. With no need for an expensive chain of storefronts, Web merchants charge 30 to 50 percent less than traditional retailers.

Sales through Taobao alone totaled an estimated 400 billion yuan ($60 billion) last year, according to analysts. Taobao does not disclose its revenues from fees charged to retailers and other income.

Its platform has led to the emergence of a cottage industry of small retailers, many of them lone traders working from home, who sell clothes, shoes, toys, costume jewelry and other goods to a nationwide market.

Taobao says its 25,000-square-meter (250,000-square-foot) Beijing mall will display 22,000 items from some 300 suppliers. Orders and payment will only take place online. Taobao says it plans to open similar showrooms in other major Chinese cities.

Other Internet retailers such as jewelry seller Zbird.com also have opened showrooms to encourage customers to buy higher-priced items online.

Such outlets could help e-commerce sites compete even more aggressively with traditional retailers by boosting consumer confidence in a market where online sellers have an uneven reputation for quality, said Ji.

"By having a display room, it clearly will help raise the seller's credibility," he said.

On opening day Friday, shoppers at the Taobao Mall on the Chinese capital's east side were test-sitting sofas and flipping through channels on big-screen TVs.

"Compared with photos on the Web, I can really touch the things, so I can put more trust in them," said Yu Jingyuan, an engineer for a computer company who was looking at a stall displaying kitchenwares. "I can trust the sellers online."

China has by far the world's biggest population of Web users, with 457 million people online as of Dec. 31. But just 10 percent of them shop online, compared with the U.S. level of about 70 percent, leaving online merchants room to expand.

In contrast to the United States, Europe and other developed markets, China's online merchants enjoy the unusual advantage that they face no entrenched retail giants with decades of market dominance and strong brand names.

After decades of poverty and communist central planning, modern retailing began to replace drab, poorly stocked Chinese stores only in the 1990s. But that was followed just a few years later by the launch of online commerce.

Bricks-and-mortar retailing is fragmented, leaving competitors without the financial might of counterparts abroad. The top 20 account for less than 10 percent of China's annual sales, a far cry from the 50 percent market share of the U.S. top 20.

Alibaba and other companies have developed online payment systems to serve customers without credit cards. In response to concerns about product quality, some release the money only after the buyer is satisfied.

In big cities, delivery services that draw on China's abundant supply of low-cost labor can get purchases from local sellers to buyers the same day.

Taobao says it has no plans to open showrooms to display other goods, but the manager of its new Beijing mall had a warning for rivals.

"In the online world," said Ye Peng, "nothing is impossible."

___

Taobao.com: http://www.taobao.com

Alibaba Group: http://www.alibaba.com

Dangdang.com: http://www.dangdang.com

360buy.com: http://www.360buy.com

Rivals likely to reach for Google's "Wallet" (AFP)

Posted: 29 May 2011 07:06 PM PDT

NEW YORK (AFP) – With the announcement of "Google Wallet" the Internet giant became the first player to dash into a future where people use smartphones as credit cards, but rivals are expected to cut its lead short.

EBay quickly threw up a hurdle in the form of a lawsuit accusing Google of building the mobile payments platform with trade secrets swiped from the online auction titan's PayPal financial transactions unit.

Apple, Amazon.com, eBay and Facebook are each believed to be working on ways to let people use smartphones to pay for items or services but Google was the first to introduce such a system, in the form of "Google Wallet."

At this point, the move is largely symbolic. A test version of the system will go to live in coming months in just two US cities, New York and San Francisco.

Google Wallet will work with Android-powered phones like Google's Nexus S equipped with near-field-communication (NFC) chips, serviced by US telecom Sprint and only at merchants that have partnered with Google for the launch.

Google partners on the mobile payment platform include major chains such as Macy's, Subway sandwiches, and American Eagle Outfitters clothing shops.

For Justin Post, financial analyst at Bank of America Merrill Lynch, being first into the market with Wallet positions the California Internet firm as an early leader in mobile payments.

"Google Wallet has big ambitions but also faces great obstacles, but (its operating system for mobile) Android and location-based search are key assets that could help launch the ecosystem," he said.

Within hours of the unveiling of Wallet on Thursday, eBay and PayPal filed a lawsuit charging that Google tapped into the online financial transaction service's know-how for the mobile payments project.

PayPal spent three years trying to work out a deal in which it would handle payments for Android smartphones, only to see Google scuttle the talks and hire PayPal lead negotiator Osama Bedier, according to court documents.

"Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy," a Google spokesman told AFP.

"We respect trade secrets, and will defend ourselves against these claims."

Bedier worked at the eBay-owned online financial services unit as a vice president of platform, mobile, and new ventures until being hired in January by Google.

Piper Jaffray analyst Gene Munster saw the lawsuit as "a sign that (PayPal and eBay) are nervous that they have big players coming after them."

Boston University professor of law Michael Meurer shared two possible theories based on the apparent merits of the freshly-filed lawsuit.

Bedier is either a bad guy who stole trade secrets or PayPal "is a bit desperate, sees that Google is going to enter their market in a big way and will try to do whatever it can to delay Google," Meurer theorized.

Even if the lawsuit fails, the litigation can disrupt Google's momentum as executives and engineers spend time testifying and PayPal perhaps tries to get the court to stall the service until matters are resolved.

No matter how the case plays out, Google can expect to see other Internet titans enter the mobile payments arena.

"It's nice to be first to market...but it's going to be a ramp-up and there are going to be different approaches to this," said PeekYou website founder Michael Hussey, who keeps watch on the Internet economy.

"Amazon is going to want something I'm sure...Apple definitely has got to do something," he continued.

Apple's beloved iPhones are already compatible with Square software for accepting credit card payments and rumors building ahead of an Apple developers conference in June include talk that the smartphones may get NFC chips.

Apple gadget fans already trust the California company with financial information and are in the habit of shopping at iTunes and the App Store.

Internet retail powerhouse Amazon is also, understandably, in a strong position to add a smartphone payments platform to its service.

Globally popular online social network Facebook has been improving smartphone features and weaving deals at local shops into its platform, making the ability to consummate transactions a natural next step.

Why Are Android Apps Ugly? (ContributorNetwork)

Posted: 29 May 2011 09:46 AM PDT

Contribute content like this. Start here.

It's true that not all Android apps are ugly. But if you spend awhile using an Android smartphone or tablet, then switch to an iPhone or iPad, you can see the difference: iOS apps don't just look shinier, they work better and are easier to use. Even when an app is available for both iPhone and Android, the iPhone one usually looks better.

Why does this happen, and should it be a concern if you're thinking of buying an Android smartphone?

Low barrier to entry

Writing apps for the iPhone or iPad costs $99 per year, if you want to put your apps on the App Store. You use a language called Objective-C, that's only used to write Mac and iOS apps, and every app you write will be screened by Apple before being placed in its store.

Judging by some of the crud on the App Store, this process doesn't weed out enough apps. But writing an app for the Android Market is much easier: You pay a $25 flat fee to put your apps on the Market, plus $20 if you want to charge for them. And you use a language called Java, that's widely taught in college and fairly easy to learn. Since it's easier to start writing Android apps, there are a lot more "amateur" apps on the Market.

Less money to be made

The Android Market is growing fast, both in terms of how many apps are on it and in terms of how much money there is to be made from selling apps. Despite that, though, Android developers are only making a tiny fraction of the money that's being made on the iTunes App Store. In fact, the biggest metric where the Market beats the App Store is its number of free apps.

There are people making money from Android apps -- sometimes, more than on the App Store. That's not the case for most people, though, which means it's not exactly the first stop for a dedicated developer who wants to make money.

Writing for multiple phones

IPhone and iPad app developers basically only have one screen size to worry about for each device. (The iPhone 4's Retina Display increased the screen resolution, but it exactly doubled it on each side, which made scaling the graphics up a lot easier.) Because of this, they can treat the screen as a canvas, and know what their apps will look like for everybody who uses them.

Android developers, on the other hand, have to write apps both for my HTC Aria -- about the size of an iPhone -- and for monster phones like the Droid, which have bigger screens and much higher resolutions. And since a lot of Android phones have slider keyboards, they have to make sure their apps work when you hold the phone sideways as well. If they don't account for every phone that their apps will run on, they either leave out a huge chunk of their market, or get angry reviews from people whose phones won't run their apps.

Different strokes?

Ask yourself this. If you're a designer, who owns a Mac and wants to create things of lasting beauty and utility -- and charge money for them -- which kind of phone are you going to write apps for? Which kind are you going to buy?

Again, I'm not saying there are no beautiful Android apps. But there are more of them for the iPhone and iPad, and they're why people love them so much.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

Combine your IM conversations in one window with Trillian for Android (Appolicious)

Posted: 29 May 2011 08:00 AM PDT

NY rep says hacker sent lewd photo from Twitter (AP)

Posted: 29 May 2011 04:34 PM PDT

NEW YORK – A lewd photograph of a crotch sent from the Twitter account of U.S. Rep. Anthony Weiner is just "a distraction" perpetrated by a hacker, his spokesman said Sunday.

Dave Arnold told The Associated Press in an email that the tweet, directed at a woman, was "a distraction" from the married New York Democrat's "important work representing his constituents."

"Anthony's accounts were obviously hacked," Arnold said. "He doesn't know the person named by the hacker, and we will be consulting on what steps to take next."

The photo showed a man's bulging underpants.

It first was reported Saturday by BigGovernment.com, a website run by conservative commentator Andrew Breitbart. The site said the photo was tweeted to a Seattle woman.

The photo was quickly deleted.

Weiner later joked about the account hacking on Twitter, asking whether his kitchen blender would be next to "attack" him.

Weiner represents New York's 9th District, which covers parts of Queens and Brooklyn, where he was born and raised. He failed in a 2005 bid for the Democratic nomination for mayor of the city but still is widely considered a contender for the office.

He has worked on issues including public housing, homeland security and energy for his constituents.

Weinger, 46, is married to Huma Abedin, an aide to Secretary of State Hillary Clinton.

KAMI RETRO HD tops iPad Games of the Week (Appolicious)

Posted: 29 May 2011 03:00 PM PDT

Taiwan show to feature Apple tablet challengers (AP)

Posted: 29 May 2011 07:53 PM PDT

TAIPEI, Taiwan – Computer manufacturers of all sizes and descriptions have been pushing to get a piece of the ever-expanding tablet market created by the launch of Apple's iPad in April 2010.

The obsession with tablet computing will be on full display Tuesday as Computex, the world's second-largest computer show, begins its annual five-day run in Taipei. The prominence of tablets underscores a dramatic shift under way in the personal computer industry — and keenly felt in Taiwan, which is home to some of the world's biggest PC manufacturers — as many consumers opt to buy a tablet rather than a new PC.

Computex will feature more than 50 tablet models, said organizer Taipei Computer Association, with big names including Lenovo Group Ltd. and Toshiba Corp. having their products displayed.

Researchers have predicted slower growth in PC sales this year because of the rising consumer interest in tablets. Gartner Research recently cut its sales growth forecast for global PC sales in 2011 from 15.9 percent to 10.5 percent. According to IHS iSuppli, world PC shipments declined 0.3 percent year-on-year to 8.1 million units in the first quarter of 2011, with sales by No. 3-ranked Acer plunging 20 percent.

Many analysts say it may take two or three years before mobile device software from Google Inc. and Microsoft Corp. can catch up with iPads, which have thousands of applications for consumers to choose from. That may mean a hard time for many PC makers in the short term.

Research company CDC says Apple Inc. had a 73 percent share of the tablet market in the last quarter of 2010. South Korea's Samsung Electronics Co. was a distant second with 17 percent. It said 2010 tablet sales totaled 18 million units. CDC expects Apple to account for 70-80 percent of 2011 tablet sales that it predicts will reach 50 million units.

Besides tablets, Computex will also feature corporate and home servers and other cloud-based computing equipment and services, a sector Taiwanese firms have recently entered to make up for shortfalls in PC sales.

The world's top contract laptop manufacturer, Taiwan-based Quanta Computer Co., is among those producing servers for global firms such as Google.

Cloud computing involves running applications in web browsers. The cloud allows users to store and retrieve data over the Internet whenever it is needed, instead of saving it on their own computers.

At least 10 of the tablet models to be shown at Computex are powered by Intel Corp.'s new Atom chip, the U.S. technology giant's first microprocessor designed for tablets. Intel has moved into the fast growing market now dominated by chips using designs by UK-based ARM Holdings.

The new Atom "delivers improved video playback, fast Internet browsing and longer battery life," Navin Shenoy, general manager of Intel's Asia-Pacific region, said in an emailed statement.

There is "a tremendous amount of experimentation going on in the industry," Shenoy said. Tablets, which are more popular in mature markets, will not replace PCs, he said, noting the strong PC demand in Asia and emerging markets.

Taiwanese high-tech firms are also entering the mobile device market pressured by Apple, whose market dominance — extending to the second generation iPad2 — has cut into their PC sales and dented the profits of some.

Taiwan's top two PC vendors, Acer Inc. and AsusTek Computer Inc., are among those using Computex to display a range of touch-screen tablet computers. Their tablets run on the Android operating system that Google distributes free to allow quick Web browsing or film viewing, or on Microsoft mobile software that mostly targets the commercial market.

Acer and AsusTek have promoted their tablets — Iconia Tab and Transformer among others — as having expandable memory slots, hoping to lure consumers with more storage needs. The iPads don't have built-in USB ports.

In addition, the companies say their sleek devices can become full-fledged laptops when plugging them into a keyboard docking station for easy typing.

In terms of tablet prices, Apple's big orders give it a huge edge, while South Korean Samsung Electronics is able to bring costs down by making key components in house — an advantage denied local makers, said Simon Yang, an analyst with Taipei-based Topology Research Institute.

So far, the Taiwanese company with the best success in selling mobile devices is HTC Corp.

The company manufactured the first handset based on the Android operating system in 2008. It has since marketed a wide range of smartphones to meet different tastes, and has recently introduced a movie viewing program called "HTC Watch." HTC's sales jumped to 9.7 million handsets in the first quarter, up from 3.3 million a year earlier.

HTC's first tablet, the 7-inch Flyer, sold well in pre-orders in Taiwan this month, vendors say. Its 16 gigabyte Wi-Fi version is priced at $499, the same as the 9.7-inch iPad. But HTC says its smaller-size device has an advantage, because it is lighter, and more manageable than the iPad.

By contrast, Acer and AsusTek have pursued a low-price strategy. Their Iconia Tab and Transformer models — despite having larger 10.1-inch screens — are priced at $450 to $500.

"Taiwanese companies are yet to become serious rivals to Apple," said Yang. "They either price their tablets too high or sell them at a loss in order to become competitive."

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