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Apple CEO Tim Cook is fulfilling another Steve Jobs vision

Inside Telecom Staff

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Apple CEO Tim Cook is fulfilling another Steve Jobs vision2

BERKELEY, Calif. (AP) — Apple co-founder Steve Jobs, who died in 2011, was a tough act to follow. But Tim Cook seems to be doing so well at it that his eventual successor may also have big shoes to fill.

Initially seen as a mere caretaker for the iconic franchise that Jobs built before his 2011 death, Cook has forged his own distinctive legacy. He will mark his ninth anniversary as Apple’s CEO Monday — the same day the company will split its stock for the second time during his reign, setting up the shares to begin trading on a split-adjusted basis beginning Aug. 31.

Grooming Cook as heir apparent was “one of Steve Jobs’ greatest accomplishments that is vastly underappreciated,” said long-time Apple analyst Gene Munster, who is now managing partner of Loup Ventures.

The upcoming four-for-one stock split, a move that has no effect on share price but often spurs investor enthusiasm, is one measure of Apple’s success under Cook. The company was worth just under $400 billion when Cook the helm; it’s worth five times more than that today, and has just become the first U.S. company to boast a market value of $2 trillion. Its share performance has easily eclipsed the benchmark S&P 500, which has roughly tripled in value during the past nine years.

But it hasn’t always been easy. Among the challenges Cook has faced: a slowdown in iPhone sales as smartphones matured, a showdown with the FBI over user privacy, a U.S. trade war with China that threatened to force up iPhone prices and now a pandemic that has closed many of Apple’s retail stores and sunk the economy into a deep recession.

Cook, 59, has also struck out in into novel territory. Apple now pays a quarterly dividend, a step Jobs resisted partly because he associated shareholder payments with stodgy companies that were past their prime. Cook also used his powerful perch to become an outspoken advocate for civil rights and renewable energy, and on a personal level came out as the first openly gay CEO of a Fortune 500 company in 2014.

Apple declined to make Cook available for an interview. But it did point to 2009 comments Cook made to financial analysts when he was running the company while Jobs battled pancreatic cancer.

Asked what the company might look like under his management, Cook said that Apple needs “to own and control the primary technologies behind the products we make.” It has doubled down on that commitment, becoming a major chip producer in order to supply both iPhones and Macs. He added that Apple would resist exploring most projects “so that we can really focus on the few that are truly important and meaningful to us.”

That laser focus has served Apple well. At the same time, though, under Cook’s stewardship, Apple has largely failed to come up with breakthrough successors to the iPhone. Its smartwatch and wireless ear buds have emerged as market leaders, but not game changers.

Cook and other executives have dropped hints that Apple wants make a big splash in the field of augmented reality, which uses phone screens or high-tech eyewear to paint digital images into the real world. Apple has yet to deliver, although neither have other companies that have hyped the technology.

Apple also remains a laggard in artificial intelligence, particularly in the increasingly important market for voice-activated digital assistants. Although Apple’s Siri is widely used on Apple devices, Amazon’s Alexa and Google’s digital assistant have made major inroads in helping people manage their lives, particularly in homes and offices.

Apple also has stumbled a few times under Cook’s leadership.

In 2017, it alienated customers by deliberately but quietly slowing the performance of older iPhones via a software update, ostensibly to spare the life of aging batteries. Many consumers, though, viewed it as a ploy to boost sales of newer and more expensive iPhones. Amid the furor, Apple offered to replace aging batteries at a steep discount; later it paid $500 million to settle a class-action lawsuit over the matter.

Apple has also faced government investigations into its aggressive efforts to minimize its corporate taxes and complaints that it has abused control of its app store to charge excessive fees and stifle competition to its own digital services. On the tax front, a court ruled in July that Apple did nothing wrong.

Cook has turned the app store into the cornerstone of a services division that he set out to expand four years ago. At the time, it was growing clear that sales of the iPhone — Apple’s biggest money maker — were destined to slow down as innovations grew sparse and consumers kept their old devices for longer.

To help offset that trend, Cook began to emphasize recurring revenue from app commission, warranty programs and streaming subscriptions to music, video, games and news sold for the more 1.5 billion devices already running on the company’s software.

After doubling in size in less than four years, Apple’s services division now generates $50 billion in annual revenue, more than all but 65 companies in the Fortune 500. Wedbush Securities analyst Daniel Ives estimates Apple’s services division by itself is worth about $750 billion — about the same as Facebook currently is in its entirety.

That division could be worth even more now had Cook done something many analysts believe Apple should have done at least five years ago by dipping into a hoard of cash that at one point surpassed $260 billion to buy Netflix or a major movie studio to fuel its video streaming ambitions.

Buying Netflix seemed like within the realm of possibility five years ago when the video streaming service was valued at around $40 billion. Now that Netflix is worth more than $200 billion today, that idea seems off the table, even for a company with Apple’s vast resources.

By MICHAEL LIEDTKE AP Business Writer.

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Facebook demands academics disable ad-targeting data tool

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Academics, journalists and First Amendment lawyers are rallying behind New York University researchers in a showdown with Facebook over its demand that they halt the collection of data showing who is being micro-targeted by political ads on the world’s dominant social media platform.

The researchers say the disputed tool is vital to understanding how Facebook has been used as a conduit for disinformation and manipulation.

In an Oct. 16 letter to the researchers, a Facebook executive demanded they disable a special plug-in for Chrome and Firefox browsers used by 6,500 volunteers across the United States and delete the data obtained. The plug-in lets researchers see which ads are shown to each volunteer; Facebook lets advertisers tailor ads based on specific demographics that go far beyond race, age, gender and political preference.

The executive, Allison Hendrix, said the tool violates Facebook rules prohibiting automated bulk collection of data from the site. Her letter threatened “additional enforcement action” if the takedown was not effected by Nov. 30.

Company spokesman Joe Osborne said in an emailed statement Saturday that Facebook “informed NYU months ago that moving forward with a project to scrape people’s Facebook information would violate our terms.” The company has long claimed protecting user privacy is its main concern, though NYU researchers say their tool is programmed so the data collected from participating volunteers is anonymous.

The outcry over Facebook’s threat was immediate after The Wall Street Journal first reported the news Friday considering the valuable insights the “Ad Observer” tool provides. It has been used since its September launch by local reporters from Wisconsin to Utah to Florida to write about the Nov. 3 presidential election.

“That Facebook is trying to shut down a tool crucial to exposing disinformation in the run up to one of the most consequential elections in U.S. history is alarming,” said Ramya Krishnan, an attorney with the Knight First Amendment Institute at Columbia University, which is representing the researchers. “The public has a right to know what political ads are being run and how they are being targeted. Facebook shouldn’t be allowed to be the gatekeeper to information necessary to safeguard our democracy. “

“The NYU Ad Observatory is the only window researchers have to see microtargeting information about political ads on Facebook,” Julia Angwin, editor of the data-centric investigative tech news website The Markup, tweet in disappointment.

The tool lets researchers see how some Facebook advertisers use data gathered by the company to profile citizens “and send them misinformation about candidates and policies that are designed to influence or even suppress their vote,” Damon McCoy, an NYU professor involved in the project, said in a statement.

After an uproar over its lack of transparency on political ads Facebook ran ahead of the 2016 election, a sharp contrast to how ads are regulated on traditional media, the company created an ad archive that includes details such as who paid for an ad and when it ran. But Facebook does not share information about who gets served the ad.

The company has resisted allowing researchers access to the platform, where right-wing content has consistently been trending in recent weeks. Last year, more than 200 researchers signed a letter to Facebook calling on it to lift restrictions on public-interest research and journalism that would permit automated digital collection of data from the platform.

By FRANK BAJAK AP Technology Writer – BOSTON (AP).

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Huawei sales up, but growth slows under virus, US pressure

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Chinese tech giant Huawei, one of the biggest makers of smartphones and switching equipment, said Friday its revenue rose 9.9% in the first nine months of this year, but growth decelerated in the face of U.S. sanctions and the coronavirus pandemic.

Huawei Technologies Ltd. gave no sales figure for the most recent quarter ending in September, but growth for the first three quarters was down from the 13.1% reported for the first half of the year.

Huawei is struggling with U.S. sanctions that cut off its access to most American components in a feud with Beijing over technology and security. The White House says Huawei is a threat and might facilitate Chinese spying, which the company denies.

Washington also is tightening curbs on access to U.S. markets or technology for other Chinese tech companies including telecom equipment maker ZTE Corp., video service TikTok and messaging app WeChat.

The conflict has fueled fears the global market might be dividing into competing U.S. and Chinese technology spheres with incompatible standards. Industry analysts warn that would slow down innovation and raise costs.

Executives have warned Huawei’s smartphone and network equipment sales would be affected. The company has launched smartphones based on its own chips and other components and says it is removing U.S. technology from its products.

On Thursday, the company unveiled its latest smartphone, the Mate 40, based on Kirin 9000 chips developed by Huawei.

Sales in the first nine months of 2020 rose to 671.3 billion yuan ($100.4 billion), Huawei reported. It said net profit was 8%, down from the first half’s 9.2% margin.

The company gave no details of its smartphone shipments. Sales outside China have weakened because its handsets no longer come preloaded with Google’s popular music, maps and other features. But sales in China, where Huawei phones already used local alternatives, have grown sharply.

Huawei’s global market share in smartphones rose to 19.6% in the three months ending in June, up from 17.7% a year earlier, according to Canalys. That was driven by strength in its home market, where Huawei had a 51% market share and sales rose 32% to 14.5 million handsets.

Huawei is owned by its Chinese employees who make up about 60% of its global workforce of 194,000. It began reporting financial results a decade ago in an attempt to appear more transparent and mollify foreign security fears.

BEIJING (AP) — By JOE McDONALD AP Business Writer.

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Tesla ‘full self-driving’ vehicles can’t drive themselves

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Earlier this week, Tesla sent out its “full self-driving” software to a small group of owners who will test it on public roads. But buried on its website is a disclaimer that the $8,000 system doesn’t make the vehicles autonomous and drivers still have to supervise it.

The conflicting messages have experts in the field accusing Tesla of deceptive, irresponsible marketing that could make the roads more dangerous as the system is rolled out to as many as 1 million electric vehicle drivers by the end of the year.

“This is actively misleading people about the capabilities of the system, based on the information I’ve seen about it,” said Steven Shladover, a research engineer at the University of California, Berkeley, who has studied autonomous driving for 40 years. “It is a very limited functionality that still requires constant driver supervision.”

On a conference call Wednesday, Musk told industry analysts that the company is starting full self-driving slowly and cautiously “because the world is a complex and messy place.” It plans to add drivers this weekend and hopes to have a wider release by the end of the year. He referred to having a million vehicles “providing feedback” on situations that can’t be anticipated.

The company hasn’t identified the drivers or said where they are located. Messages were left Thursday seeking comment from Tesla.

The National Highway Traffic Safety Administration, which regulates automakers, says it will monitor the Teslas closely “and will not hesitate to take action to protect the public against unreasonable risks to safety.”

The agency says in a statement that it has been briefed on Tesla’s system, which it considers to be an expansion of driver assistance software, which requires human supervision.

“No vehicle available for purchase today is capable of driving itself,” the statement said.

On its website, Tesla touts in large font its full self-driving capability. In smaller font, it warns: “The currently enabled features require active driver supervision and do not make the vehicle autonomous. The activation and use of these features are dependent on achieving reliability far in excess of human drivers as demonstrated by billions of miles of experience, as well as regulatory approval, which may take longer in some jurisdictions.”

Even before using the term “full self-driving,” Tesla named its driver-assist system “Autopilot.” Many drivers relied on it too much and checked out, resulting in at least three U.S. deaths. The National Transportation Safety Board faulted Tesla in those fatal crashes for letting drivers avoid paying attention and failing to limit where Autopilot can be used.

Board members, who have no regulatory powers, have said they are frustrated that safety recommendations have been ignored by Tesla and NHTSA.

Bryant Walker Smith, a University of South Carolina law professor who studies autonomous vehicles, said it was bad enough that Tesla was using the term “Autopilot” to describe its system but elevating it to “full self-driving” is even worse.

“That leaves the domain of the misleading and irresponsible to something that could be called fraudulent,” Walker Smith said.

The Society of Automotive Engineers, or SAE, has developed five levels to describe the functions of autonomous vehicles. In levels zero through two, humans are driving the cars and supervising partially automated functions. In levels three through five, the vehicles are driving, with level five describing a vehicle being driven under all traffic and weather conditions.

The term “full self-driving” means there is no driver other than the vehicle itself, indicating that it would be appropriate to put no one in the vehicle, Walker Smith said.

Musk also said on Wednesday that Tesla would focus on setting up a robotaxi system where one person could manage a fleet of 10 self-driving cars in a ride hailing system.

“It wouldn’t be very difficult, but we’re going to just be focused on just having an autonomous network that has sort of elements of Uber, Lyft, Airbnb,” he said.

Tesla is among 60 companies with permits to operate autonomous vehicles with human backup drivers in California, the No. 1 state for Tesla sales. The companies are required to file reports with regulators documenting when the robotic system experiences a problem that requires the driver to take control – a mandate that could entangle the owners of Tesla vehicles in red tape.

Before Tesla is able to put fully self-driving vehicles on California roads, it will have to get another permit from state regulators. Only five companies, including Google spin-off Waymo and General Motors’ Cruise subsidiary, have obtained those permits.

The California Department of Motor Vehicles didn’t immediately respond to questions about Tesla’s latest plans for robotic cars.

NHTSA, which has shied away from imposing regulations for fear of stifling safety innovation, says that every state holds drivers accountable for the safe operation of their vehicles.

Walker Smith argues that the agency is placing too much of the responsibility on Tesla drivers when it should be asking what automakers are going to do to make sure the vehicles are safe. At the same time, he says that testing the system with vehicle drivers could be beneficial and speed adoption of autonomous vehicles.

Thursday afternoon, Musk was clearly trying to sell the full self-driving software. He wrote on Twitter that the price of “FSD beta” will rise by $2,000 on Monday.


DETROIT (AP) — By TOM KRISHER AP Auto Writer

AP Technology Writer Michael Liedtke contributed from San Ramon, California.

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