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Tuesday, July 26, 2011

Internet privacy controls challenge tech industry (AP) : Technet

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Internet privacy controls challenge tech industry (AP) : Technet

Internet privacy controls challenge tech industry (AP)

Posted: 26 Jul 2011 03:03 PM PDT

By JOELLE TESSLER, AP Technology Writer Joelle Tessler, Ap Technology Writer – Tue Jul 26, 6:03 pm ET

WASHINGTON – The federal government has put Google, Microsoft, Apple and other technology companies on notice: Give consumers a way prevent advertisers from tracking their movements across the Web — or face regulation.

Yet for all its innovative know-how and entrepreneurial spirit, the technology industry has yet to agree on a simple, meaningful solution to protect consumer privacy on the Internet.

So privacy watchdogs and lawmakers are stepping up the pressure, calling for laws that would require companies to stop the digital surveillance of consumers who don't want to be tracked. They argue that effective privacy tools are long overdue from an industry that typically moves at breakneck speed.

"I want ordinary consumers to know what is being done with their personal information, and I want to give them the power to do something about it," Senate Commerce Committee Chairman John D. Rockefeller, D-W. Va., said at a recent hearing.

Washington's call to arms is a response to growing concern that invasive Internet marketing practices are eroding privacy online as every consumer move is observed, analyzed and harvested for profit.

Online publishers, advertisers and ad networks use "cookies," Web beacons and other sophisticated tracking tools to follow consumers around the Internet — monitoring what sites they visit and what links they click, what they search for and what they buy. Then they mine that information to deliver what they hope will be relevant pitches — a practice called behavioral advertising.

"Right now we have a lawful system for tracking all of our movements online," says Christopher Calabrese, legislative counsel for the American Civil Liberties Union. "And not only is it legal. It's the business model."

Calls for online privacy protections began with the Federal Trade Commission, which has challenged the industry to offer a digital tracking off switch. The FTC envisions something akin to the government's existing "Do Not Call" registry for telemarketers. Consumers who don't want to receive telemarketing calls can add their numbers to the list online or over the phone.

Companies including Microsoft and Mozilla have responded with various "Do Not Track" technologies. But an industry-wide solution is not close at hand.

That's because putting the Do Not Track concept into practice is much more complicated than simply adding phone numbers to a database. The challenge is in reaching industry consensus on what Do Not Track obligations should mean, designing standard technology tools that are easy for consumers to use and setting common rules that all Websites and advertisers will follow.

One big part of the problem is that the industry needs to find a way to let consumers halt intrusive online marketing practices without preventing tracking critical for the Internet to function. After all, Internet companies rely on tracking not just to target ads, but also to analyze website traffic patterns, store online passwords and deliver customized content like local news. Nobody wants to stop those things.

Also complicating efforts to reach broad agreement is the lucrative nature of behavioral advertising.

Industry leaders argue that many consumers like targeted ads since they deliver personalized pitches that people may want. And because these ads tend to be more effective, advertisers are willing to pay more for them, says David Hallerman, an analyst with eMarketer.

Research firm eMarketer projects U.S. spending on online behavioral advertising will hit $2.6 billion by 2014, up from $775 million in 2008.

That enables Internet companies to offer everything from online stock quotes to unlimited email storage for free, says Anne Toth, Yahoo's chief trust officer. Without sophisticated advertising technology, more websites and services could wind up behind pay walls, companies warn.

The problem, argues Jeff Chester, executive director of the Center for Digital Democracy, a privacy group, is that many consumers don't know they're being tracked. And even if they do, they have no idea what happens to their information — whether it is used to create personal profiles, merged with offline databases or sold to data brokers — and no practical way to stop the data collection.

With growing alarm in Washington, a coalition of industry trade groups_ called the Digital Advertising Alliance — has established a self-regulatory program that places icons inside the online ads of participating advertisers, ad networks and websites. The icon links to a site that explains online targeting, and lets consumers install an opt-out cookie if they just want standard ads.

Among the groups participating in the alliance are the Interactive Advertising Bureau and the Direct Marketing Association, as well as individual companies including Google and Yahoo.

Even so, these efforts don't go far enough for the FTC. While the agency has not endorsed any particular Do Not Track technology, it believes one promising approach could involve including a setting inside Web browsers. Now the browser companies, led by Microsoft and Mozilla, are responding with different approaches:

• Microsoft has a feature called "tracking protection" in Internet Explorer 9.0 that lets users create "black lists" of Web sites to be blocked and "white lists" of sites that are deemed acceptable. Users can set their browsers to automatically build these lists or can download existing lists.

• Mozilla has a setting in its Firefox 4 browser that sends a signal to alert websites, advertisers and ad networks if a user does not want to be tracked.

Apple is expected to include a similar feature, called a "header," in its Safari browser. Microsoft, too, recently added the feature to IE 9.0.

• Google's Chrome browser is piggybacking on the Digital Advertising Alliance by offering a plug-in that saves opt-out cookies even if other cookies are erased. One criticism of the industry program is that users lose their opt-out preferences whenever they clear their cookies.

For such tools to work, however, there must be industry consensus on what Do Not Track obligations should actually mean. And right now, there is little agreement.

Nearly everyone accepts that publishers should be able to measure traffic volumes on their own sites, for instance. But should advertisers be allowed to track how many visitors see or click on their ads?

The industry's self-regulatory program, for one, does not turn off data collection. Consumers who install an opt-out cookie no longer receive targeted ads from participating companies, but may still be tracked for non-advertising purposes. That doesn't satisfy privacy watchdogs.

Microsoft Deputy General Counsel Erich Andersen says tracking protection offers a way around this debate since it lets consumers decide what to block. But this approach worries advertisers since it can block ads altogether, even generic ads.

And anyway, with Do Not Track signals in several popular browsers, websites and advertisers need to agree on how to respond, says Jules Polonetsky, director of the Future of Privacy Forum, an industry-backed group. Otherwise, he says, Do Not Track obligations could get defined for them by browsers or government officials.

Equally important for Do Not Track to succeed, the technology must be easy to find and use. If Do Not Track tools are too confusing or involve too much effort, people won't embrace them, warns Marc Rotenberg, executive director of the Electronic Privacy Information Center. "We can't expect users to spend a lot of time reconfiguring their browsers," he says.

Privacy watchdogs are gravitating to Mozilla's approach as particularly user-friendly. But it presents a different challenge: ensuring websites, advertisers and ad networks respect user requests not to be tracked. While Microsoft's tracking protection blocks unwanted content — and requires no compliance by Websites and advertisers — a signal in a browser means nothing if it is not honored.

"Without anyone on the other end to recognize it, it's a tree falling in the woods without anyone to hear it," says Mike Zaneis, general counsel for the Interactive Advertising Bureau. Zaneis insists the Digital Advertising Alliance offers the best approach since so many Websites and advertisers are on board.

Alex Fowler, Mozilla's global privacy and public policy leader, says the browser maker is talking with many big websites, advertisers and ad networks about honoring its Do Not Track signal. And many are open to the idea. Still, so far only a handful of industry players have actually pledged to honor the signal.

And that, privacy watchdogs say, shows why the government needs to get involved.

Senator Rockefeller is sponsoring a bill that would direct the FTC to write binding, industry-wide Do Not Track rules. There are similar bills in the House and the California legislature.

The Internet marketing industry wants to head off those efforts and insists it just needs more time to establish meaningful privacy controls.

For now, FTC Chairman Jon Leibowitz is willing to give the industry a chance before calling for legislation. Even without a government mandate, he noted, it's in the industry's self-interest to make Do Not Track work. After all, Leibowitz says, "nobody wants to be on the wrong side of consumers."

Wal-Mart offers video streaming on website (AP)

Posted: 26 Jul 2011 02:29 PM PDT

By MAE ANDERSON, AP Retail Writer Mae Anderson, Ap Retail Writer – Tue Jul 26, 5:29 pm ET

NEW YORK – Now playing: Movies at Walmart.com.

The world's largest retailer on Tuesday started streaming many movies the same day they come out on DVD, in a second bid for a share of popular movie rental and streaming website Netflix Inc.'s business and just two weeks after Netflix announced new price increases.

Wal-Mart Stores Inc. bought video-streaming service Vudu.com 18 months ago and now offers 20,000 titles that can be viewed on almost any device with Internet access, from computers to televisions to Sony's PlayStation3 and other Blu-Ray disc players.

Movies are available at Walmart.com to rent for $1 to $5.99 or to purchase for $4.99 and up. Wal-Mart is not offering subscriptions, making its service more similar to Apple Inc.'s iTunes, which charges $3.99 to rent newly released movies and $14.99 to buy a movie.

In addition to Netflix, another competitor streaming movies and TV shows by subscription is Hulu.com, which now offers a premium service for $7.99 a month with more back-season shows and more movies. Without a subscription, Hulu viewers can watch shows and movies free in exchange for watching advertising.

The movie offering fits with the Wal-Mart website's strategy of offering a "seamless continuous shopping service," said Steve Nave, senior vice president and general manager of Walmart.com.

Wal-Mart's announcement comes on the heels of Netflix saying it will raise rates and charge separately for streaming and rental DVDs. Its second price hike in eight months, Netflix's planned increases could amount to 60 percent for existing customers, starting Sept. 1. New subscribers have to pay the new prices immediately.

Netflix plans to charge $16 a month for services that used to cost $10 a month when bundled together, for example. It's still changing $8 a month for streaming, which it launched late last year. But instead of charging $2 more for a plan that includes one DVD at a time by mail, the company will charge $8 and up for DVD plans.

Customers have taken to social media sites Facebook and Twitter to vent their anger over Netflix's increases, but executives said they anticipated the reaction. The company's willingness to risk alienating subscribers signals it needs more revenue to cover rising costs.

Through June, Netflix had 24.6 million subscribers in the U.S.

Wal-Mart, based in Bentonville, Ark., has tested the movie-rental waters before. It previously offered a DVD-by-mail service that cost $12.97 per month for two titles and $17.36 per month for three titles. But it ceded that program to Netflix in May 2005, letting customers continue their subscriptions with Los Gatos, Calif.-based Netflix without a rate hike. Apple is based in Cupertino, Calif.

Amazon 2Q profit falls but results beat Street (AP)

Posted: 26 Jul 2011 04:35 PM PDT

By RACHEL METZ, AP Technology Writer Rachel Metz, Ap Technology Writer – Tue Jul 26, 7:35 pm ET

SAN FRANCISCO – Amazon.com Inc. said Tuesday that its second-quarter profit fell despite a 51 percent jump in revenue as the leading online retailer spent heavily to expand its business.

The results easily beat analyst expectations, as did Amazon's third-quarter sales outlook. Its shares rose 6 percent in after-hours trading.

CEO Jeff Bezos attributed the sales growth to "low prices, expanding selection and innovation."

The growth means Amazon must keep investing in operations expansions and upgrades. So far this year, it has announced it is building 15 new order-filling centers. In a conference call with reporters, Tom Szkutak, Amazon's chief financial officer, said he expects that figure to rise.

Overall, operating expenses rose 54 percent to $9.71 billion.

For the second quarter in a row, this cut into its bottom line. The Seattle-based company earned $191 million, or 41 cents per share, compared with $207 million, or 45 cents per share, in the year-ago quarter.

Revenue rose to $9.91 billion from $6.57 billion last year. Amazon's electronics and general merchandise revenue rose 69 percent to $5.89 billion, while sales of books, CDs, DVDs and other media rose 27 percent to $3.66 billion.

Analysts polled by FactSet were expecting a profit of 34 cents per share on $9.37 billion in revenue.

For the current quarter, Amazon forecast revenue of $10.3 billion to $11.1 billion, the midpoint of which is above the $10.40 billion analysts have been hoping for.

As usual, Amazon did say how many of its Kindle e-readers it sold in the quarter, only indicating that Kindle sales rose when compared with the first three months of the year. During the second quarter, Amazon said it was selling more e-books that it offers for the Kindle than the hardcover and paperback books it carries.

Bezos said the $139 Kindle 3G with Special Offers — a version of the Kindle released during the quarter that is subsidized with ads — is now its top-selling Kindle device.

Speculation is swirling that Amazon may be working on a tablet device to rival Apple Inc.'s popular iPad, but Szkutak would not divulge any details. Many e-readers like the Kindle use screens with "electronic ink" technology that makes them best suited for reading, especially in bright light. Tablets such as the iPad have backlit screens and are intended for functions that go beyond reading text, including surfing the Web, video chatting and watching movies.

"We have a longstanding practice of not talking about what we might or might not do in the future, so you'll have to stay tuned," Szkutak said.

The company also did not give an update on its ongoing battles with states that want online retailers to collect sales taxes on purchases made by their residents.

Amazon shares rose $13.02, or 6.1 percent, to $227.05 in extended trading. The stock finished regular trading up 69 cents at $214.18.

One student spends 500 unpaid hours mapping Kazakhstan (Yahoo! News)

Posted: 26 Jul 2011 05:41 PM PDT

Hybrid cars set new world record with quietest parade ever (Yahoo! News)

Posted: 26 Jul 2011 05:37 PM PDT

Google Responds to Google+ Account Suspension Controversy (Mashable)

Posted: 25 Jul 2011 05:24 PM PDT

Ben Parr Ben Parr – Mon Jul 25, 8:24 pm ET

Already using Google+? Follow Mashable's Pete Cashmore for the latest about the platform's new features, tips and tricks as well as social media and technology updates. Google has finally made a public statement about the recent wave of controversial Google+ account suspensions designed to enforce the company's "common name" policy.

[More from Mashable: What Twitter Can Learn From Facebook [OPINION]]

The policy is outlined in section 13 of the company's User Content and Conduct Policy. It's designed to stop users from creating fake profiles and to set a positive tone. Section 13 reads as follows:

"To help fight spam and prevent fake profiles, use the name your friends, family or co-workers usually call you. For example, if your full legal name is Charles Jones Jr. but you normally use Chuck Jones or Junior Jones, either of those would be acceptable."

[More from Mashable: HOW TO: Use Google+ For Your Job Search]

This weekend, Google started enforcing the policy, deleting a large number of Google+ accounts. While some of the suspended accounts were indeed fake profiles, others like Limor "Ladyada" Fried and lifestyle blogger A.V. Flox were accidentally deleted and quickly restored.

SEE ALSO: GOOGLE+: THE COMPLETE GUIDE | VIDEOS | REVIEW

Google SVP of Social Vic Gundotra admitted to Robert Scoble on Sunday that the company has made some mistakes with its first attempt at cracking down on fake profiles. And in Monday, Google VP of Product Bradley Horowitz wrote a more detailed post in an attempt to clear the air and set the record straight.

"We've noticed that many violations of the Google+ common name policy were in fact well-intentioned and inadvertent and for these users our process can be frustrating and disappointing," Horowitz said in his Google+ post. "So we're currently making a number of improvements to this process, specifically regarding how we notify these users that they're not in compliance with Google+ policies and how we communicate the remedies available to them."

Among the changes Google intends to implement:

- Google will give users more warning and the chance to comply with the common name policy.
- The company is improving the signup process.
- Finally, the search giant is exploring better ways to support nicknames, maiden names and pseudonyms.

Hotowitz also took time to dispel the rumor that a suspension of a Google+ account means that a user loses his or her access to Gmail, Google Docs or other Google services. "When an account is suspended for violating the Google+ common name standards, access to Gmail or other products that don’t require a Google+ profile are not removed," he said.

Google+, which will hit its one-month anniversary on Thursday, has clearly been suffering from growing pains. It has received strong criticism for its handling of Google+ brand pages.

This story originally published on Mashable here.

Fox sets new window for TV shows online (Reuters)

Posted: 26 Jul 2011 06:49 PM PDT

'Evil' Australian hacker faces 49 charges (AFP)

Posted: 26 Jul 2011 06:11 PM PDT

– Tue Jul 26, 9:11 pm ET

SYDNEY (AFP) – A man who used the online nickname "Evil" has been charged with hacking attacks that police Wednesday alleged could have caused considerable damage to Australia?s national infrastructure.

The 25-year-old unemployed truck driver, who had been unable to find a job in information technology, faces 49 charges after a six-month investigation into his online activities.

They include hacking into the systems of Platform Networks, one of the 13 service providers for the National Broadband Network (NBN), the largest infrastructure project in Australia's history.

Potentially, customers could have lost their services, depending on the security back-up they had in place.

"While Platform Networks had strong cyber security measures in place, even the best security systems are only as strong as the weakest link," said Neil Gaughan, the federal police's High Tech Crime Operations manager.

"It only takes one user with a weak password to put an entire network at risk."

Police allege the man spent up to 20 hours a day on his home computer as he worked on the attack, motivated by ego after failing to secure a job in the IT sector.

"The Australian Federal Police will allege in court that this person acted with an extreme and unusual level of malice and with no regard to the damage caused, indiscriminately targeting both individuals and companies," said Gaughan.

He is due to appear in court Wednesday charged with one count of unauthorised modification of data to cause impairment, and 48 counts of unauthorised access to, or modification of restricted data.

The first charge carries a maximum penalty of 10 years' jail while the second count carries a maximum sentence of two years.

Amazon sales leap but profits weighed down (AFP)

Posted: 26 Jul 2011 06:01 PM PDT

– Tue Jul 26, 9:01 pm ET

SAN FRANCISCO (AFP) – Amazon reported that its profit slipped as revenue leapt on hot sales of Kindle electronic readers subsidized by advertising.

Amazon profit was weighed down by expenses related to beefing up the company's operations and developing new products.

Amazon said revenue in the recently ended quarter jumped 51 percent to $9.91 billion but net profit fell eight percent to $191 million in comparison with results logged in the same period last year.

"Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we've seen in over a decade," Amazon.com founder Jeff Bezos said in a release.

He noted that Kindle 3G with Special Offers priced at $139 has become the Seattle-based online retailer's top selling e-reader since being released two weeks ago.

The cut-price version of Amazon's Kindle 3G electronic reader is sponsored by US telecom carrier AT&T. The same e-reader without on-screen ads is priced at $189.

In May, Amazon began selling Wi-Fi-only Kindles featuring advertising and discounted prices. The AT&T version lets users download books wherever there is mobile telephone coverage.

The company has declined to comment on recent reports that it plans to unveil a tablet computer by the end of the year in a bid to carve out a slice of a growing market dominated by Apple's iPad.

Amazon is also rumored to be poised to release new Kindle models.

"We will not talk about what we might or might not do," Amazon chief financial officer Tom Szkutak said when asked about tablet computer plans in an earnings conference call.

He said the company has been investing heavily to support its tremendous growth.

Amazon added about 5,300 workers in the quarter and has ramped up the number of warehouses it is adding to its retail network, according to Szkutak.

Amazon is also investing in China where the business is growing fast.

"We are very pleased with our business in China," Szkutak said.

"We are in investment mode in that country," he continued. "It is a very interesting long-term opportunity."

Amazon projected that sales in the current quarter would tally between $10.3 billion and $11.1 billion in results that would top the same quarter last year by 36 percent to 47 percent.

Amazon's earnings bested Walls Street expectations and the company's stock price rose more than six percent to $227.80 in after-hours trading that followed release of the results.

AT&T bringing Gingerbread to all 2011 devices; Android phones see discounts (Appolicious)

Posted: 26 Jul 2011 01:59 PM PDT

Politicos Twitter over debt debate (AFP)

Posted: 26 Jul 2011 08:05 PM PDT

by Tangi Quemener Tangi Quemener – 1 hr 41 mins ago

WASHINGTON (AFP) – With the White House and Republicans locked in a tense showdown over the US debt, both sides have taken to social network Twitter with a vengeance to score points in 140 characters or less.

Since talks began, President Barack Obama's communications team and their counterparts on House Speaker John Boehner's staff have scrambled to get out their message the traditional way -- in print, on talk radio and in televised addresses.

But with time running out for a deal to raise the US debt ceiling by an August 2 deadline, all parties have rushed to post soundbite-friendly updates on Twitter -- pushing for, or warning against, the various deals being proffered to avoid a potentially disastrous default.

On Monday night, after Obama and Boehner made live back-to-back primetime speeches to the nation, White House communications chief Dan Pfeiffer kept up the pressure on Twitter.

"Summary of tonight's speeches: POTUS - compromise is not a dirty word. Boehner - compromise is a dirty word," he tweeted from his official @Pfeiffer44 account, using the acronym for President of the United States.

They've also actively engaged the White House and Congressional press corps.

Time Magazine's White House correspondent Michael Scherer (username @michaelscherer) noted that Obama's press secretary Jay Carney (username, @PressSec) had invoked the word "compromise" 49 times during Tuesday's press briefing.

"#somekindofrecord" he added.

Pfeiffer quickly jumped in, noting he had said it "49 more (times) than Speaker Boehner last night."

Boehner's press man Brendan Buck then arrived, "retweeting" the earlier messages but adding, "Thanks for the platform btw," using the Internet acronym for "by the way."

Buck remarked that White House chief of staff Bill Daley, in comments to the CNBC network, "refuses to say the President would veto the House's two-step plan."

He had earlier asked, sarcastically, "Do Senior Advisors sign bills or does the President?"

Both Buck and Pfeiffer have sought to use the retweet option to respond to the reporters' questions, and used the function to advance their arguments.

The White House communications chief touted an article linked by Huffington Post online reporter Sam Stein (@samsteinhp), with the commentary "More bad reviews for the Boehner bill. Bank of America says Boehner approach risks downgrade."

Buck, meanwhile, gave a hat tip to Politico reporter Jonathan Allen for pointing out that the US Chamber of Commerce, an influential group that champions corporate interests, supported Boehner's proposal.

But Pfeiffer may have the louder voice in the Twittersphere with 16,000 followers to Buck's 1,500.

The rush for the new media stage was not lost on some commmentators.

"If the deficit-debt ceiling issue could be resolved by press releases and partisan Tweets, we'd have a surplus by now," Politico White House correspondent Glenn Thrush observed.

Economic jitters threaten holiday chip cheer (Reuters)

Posted: 26 Jul 2011 04:44 PM PDT

By Noel Randewich Noel Randewich – Tue Jul 26, 7:44 pm ET

SAN FRANCISCO (Reuters) – Makers of chips for TVs, game consoles and other consumer electronics aren't expecting much for Christmas, but insatiable demand for high-end gadgets like Apple's iPad will likely deliver some cheer.

Texas Instruments, Intel and Qualcomm are normally busy this time of year churning out microchips for consumer electronics -- typically the hottest tickets during the annual holiday season from November to December.

But persistently high U.S. unemployment and the risk of further economic slowdown, along with the danger of a European financial crisis, have soured many manufacturers' moods, according to a growing chorus of chip executives.

Even blockbuster expectations for smartphones have cooled slightly.

"Wherever we look right now there's macroeconomic uncertainty," ARM Holdings Chief Executive Warren East told analysts on a conference call on Tuesday. "There is uncertainty about consumer expenditure."

Cambridge, England-based ARM, whose chip technology is widely used in smartphones and tablets, warned that an uptick in chip manufacturing typically seen ahead of Christmas might be smaller than normal this year.

"Consumer spending is cautious," said Longbow Research analyst JoAnne Feeney. "(Product manufacturers) are in a wait-and-see holding pattern. They want to see whether demand materializes before they build more televisions, set-top boxes and cameras."

Last week, Intel cut its outlook for 2011 PC shipments and said growth would come from China and other emerging markets instead of the United States or Europe.

3M Co said on Tuesday its display and graphics segment fell in the June quarter, reflecting less demand for LCD TVs and a tighter consumer electronics market.

Because many of its products are low-cost, quickly used and sold all over the world, 3M is a barometer of global industrial health.

Texas Instruments said on Monday computing and consumer electronics customers concerned about the economy were ordering fewer chips than usual for this time of year. It said store shelves could fill up later than usual this holiday shopping season.

As well as tough economic times, ripples from Japan's earthquake in March are still affecting the industry.

Electronics manufacturers that deliberately ordered extra components following the disaster are now less worried about shortages and are beginning to work through their inventories, leading to fewer new orders, said CLSA analyst Srini Pajjuri.

Consumer appetite for Apple's smartphones is as strong as ever, but growth at competitors like Nokia, Research in Motion and LG Electronics has faltered.

And a slew of tablets meant to compete with the iPad have failed to take off, adding to inventories of chips that had been manufactured in anticipation of higher sales but have gone unused.

"Demand for smartphones and tablets is OK, but it's not as good as people were thinking," said MKM Partners analyst Daniel Berenbaum. "Plus smartphones and feature phones have a big headwind in Europe, which is a very important market."

Smartphone shipments this year will grow about 38 percent, according to market research firm IHS iSuppli. Analysts earlier this year had forecast expansion of around 50 percent.

Shares of Broadcom, which makes Bluetooth and other wireless chips and counts Apple as a key customer, soared 9 percent after the Irvine, California company gave a rosier-than-expected quarterly outlook.

Some investors expect larger wireless chipmaker Qualcomm to supply key chips for Apple's next iPhone and to continue to increase its content in Apple's devices.

Qualcomm last week raised its guidance for the current quarter, although Chief Financial Officer William Keitel warned that economic uncertainty was making customers "extra judicious".

Chipmakers that do their own manufacturing, instead of contracting it out, and that have inventories on hand, may be able to respond in time to any last-minute holiday orders should the outlook for consumer demand improve.

Texas Instruments has said there is still time to ramp up ahead of the year-end shopping season and that its factories will be ready if demand improves.

"Christmas could still come if consumers indicate they're going to spend, Longbow's Feeney said.

(Editing by Steve Orlofsky)

Follow the abbreviated NFL preseason with these iPhone apps (Appolicious)

Posted: 26 Jul 2011 03:00 PM PDT

RadioShack, Verizon in pact (Investor's Business Daily)

Posted: 26 Jul 2011 03:24 PM PDT

– Tue Jul 26, 6:24 pm ET

The electronics retailer's Q2 sank 41.5%, badly missing views on higher discounts and competition. Sales slid 2% to $941.9 mil. But shares shot up 19.9% to 15.69 as RadioShack (NYSE:RSH - News) ended its partnership with T-Mobile for Verizon Wireless. The Verizon (NYSE:VZ - News) -Vodafone (NASDAQ:VOD - News) venture will provide postpaid and prepaid wireless products and services. The move is seen giving the struggling retailer more attractive offerings.

Fox delaying online broadcasts of television shows for 8 days (Digital Trends)

Posted: 26 Jul 2011 08:31 PM PDT

Mike Flacy Mike Flacy – 1 hr 15 mins ago

family-guy-fox1

On August 15 before the fall television season begins, Fox Broadcasting is shifting to an 8-day exclusivity window and preventing consumers from  watching the latest episode of House or The Simpsons for free.  According to the Wall Street Journal, consumers will be forced to wait for a bit over a week to catch up via online video on services like Fox.com and Hulu.  However, subscribers of Hulu Plus and Dish Network will be able to see the latest episode 24 hours after the broadcast airs on Fox.  These two companies are currently the only participants in Fox's new authentication plan.  Dish Network brings about 14 million people to the table while Hulu has about 2 million Hulu Plus subscribers.

hulu-watch-house-onlineFox is currently in negotiations with other video distributors, but remains tight-lipped on potential partners.  This is the first attempt of a major broadcast network to institute timed access to programming.  However, cable networks like USA have used the times release window to limit access to popular shows like Pysch and Burn Notice.  Other channels like HBO, ESPN, CNN and AMC are moving in the direction of online authentication.  HBO limits access to its programming through the HBO GO portal and ESPN limits access to ESPN3 in the same fashion.  Users have to verify providers through the website to gain access to the programming.

Moving to an authentication platform is designed to provide extra incentive for consumers with cable or satellite service and encourage them to keep paying monthly fees for programming access.  Fox is worried that consumers are drifting away from cable and cutting off service due to the vast amount of free, online video options.  It's unclear if Fox will design a pricing model for online access to content without a subscription to a video provider. It's likely Hulu will continue to be their portal for subscription revenue as Fox owns 31 percent of the company.

Ars Technica Makes $15,000 Selling Free Article as E-Book (The Atlantic Wire)

Posted: 26 Jul 2011 03:25 PM PDT

Dino Grandoni Dino Grandoni – Tue Jul 26, 6:25 pm ET

Last week, tech website Ars Technica's John Siracusa published his massive, comprehensive review of OS X Lion, Apple's newest operating system. Siracusa's word is often treated as gospel among techies when it comes to Apple products, and Ars Technica's capitalizes on his authority in all things Apple by hiring the freelancer to write their reviews of the company's operating systems whenever a new one comes to market.

Related: Amazon to Offer iPad Rival by October

Like any Internet-based publication, Ars Technica posted Siracusa's 27,000-word article online for free. But this time around, the website found another revenue stream for the review, according to Andrew Phelps at the Nieman Journalism Lab. The site packaged the article as an e-book and sold it to Kindle users for $5 a pop. Within the first 24 hours the e-book was available, 3,000 copies were sold. That means Ars Technica made $15,000 selling something available online for free. (The e-book, oddly, isn't available in Apple's eBookstore just due to the company's long review process for book sold there.)

Related: Chart: The Rapid Gains of the E-book

Might this an indication that consumers are willing to pay of media content? Siracusa is a true expert on Apple products, and those 3,000 buyers were willing to pay a premium for premier content. "I was surprised by how many people told us they read the review online and they just wanted their own copy to go back to. Or they just bought it as a tip-jar kind of thing," Ars founder Ken Fisher said. But as Nieman's Andrew Phelps points out, that's only a fraction of the 3 million pageviews the online version received. Not the best news for hopeful journalists. Even worse is that as a freelancer who, according to Nieman, gets a "one-time advance payment" for his reviews, Siracusa won't get any money from the e-book sales. 

Ex-Microsoftie Muglia Joins Juniper as Software Chief (NewsFactor)

Posted: 26 Jul 2011 01:34 PM PDT

Jennifer LeClaire, newsfactor.com Jennifer Leclaire, newsfactor.com – Tue Jul 26, 4:34 pm ET

Bob Muglia is joining the ranks of Juniper Networks. The former president of Microsoft's $15 billion server and tools business is taking on the newly created role of executive vice president of Juniper's Software Solutions Division.

Muglia will oversee Juniper's end-to-end software strategy and lead the newly formed division, reporting directly to Juniper CEO Kevin Johnson. Juniper has a well-planned strategy in mind to tap Muglia's talents. By centralizing its software business under Muglia's leadership, Juniper hopes to sharpen its focus on systems and software as the two core engines of corporate growth.

"We are excited to have a leader of Bob's caliber coming on board to lead Juniper's software initiatives, and I'm confident that his vision, management savvy, and technical expertise will bring tremendous value to our organization," Johnson said. "As we continue to execute on our growth strategy centered on systems and software, we look forward to Bob playing a central role in extending our leadership position in network-powered software solutions."

Muglia's Mutual Respect

Juniper considers its software business a key differentiator for the company, and one that drives customer adoption of its various solutions. With Muglia at the helm of the new division, the company plans to drive even greater momentum in its software business.

Over the past 23 years, Muglia has served in leadership positions across all of Microsoft's business groups, including developer, Office, mobile devices, Windows NT, and online services. As president of the server and tools business, he was responsible for infrastructure software, developer tools, and cloud platforms, including products such as Windows Server, SQL Server, Visual Studio, System Center, and the Windows Azure platform. During his tenure, revenues increased 50 percent.

"I have long respected Juniper for its disruptive approach to solving the toughest networking problems and for its networking vision that is simple, open and programmable," Muglia said. "I am thrilled to be joining Kevin and his team and look forward to contributing to the company's continued success and momentum in the marketplace."

Juniper's Software Bet

Charles King, principal analyst at Pund-IT, said software and services are going to provide the differentiating factor for hardware vendors moving ahead. Although commoditization is an issue that networking industry players have been able to largely skirt, he said, now is the time for Juniper to make some moves in those areas as well.

"When you've got companies ranging from VMware to systems vendors getting into your turf and talking about virtualizing network technology and producing highly optimized and integrated cloud-computing environments, it puts an enormous amount of pressure on the traditional networking players, the vast majority of which are specialists," King said.

He also pointed to industry consolidation with Hewlett-Packard's acquisition of 3Com and Dell's more recent Force10 Networks grab as reasons driving Juniper and other networking players to focus more on software. And, he noted, Muglia is a great choice to lead the charge.

"In Bob Muglia, Juniper has an incredible talent. Frankly, I never did figure out why Microsoft would allow a guy who had lived and died with the company for the better part of two decades go," King said. "But I think he's an extremely intelligent and extremely visionary guy on the software side of the house and he should provide incredible value to Juniper over time."

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Posted: 26 Jul 2011 03:00 PM PDT
at 9:50 PM

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