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It makes for an ugly headline, sure. For Apple investors, though, the ruling that would ban U.S. sales of some older iPhones and iPads doesn't matter that much.
Only devices using AT&T's network fall under the ruling. And only a handful of older models are affected. What's more, only two of the affected models, the iPhone 4 and the "3G version" of the iPad 2, are still being sold. Half of iPhone 4s and two-thirds of 3G iPad 2s sold in the U.S. are on AT&T's network. Respectively, they generate 13% and 14% of U.S. iPhone and iPad sales. Putting all those numbers together suggests that, at most, the ban impacts roughly 2% of Apple's sales, based on March-quarter numbers. Their contribution will be blunted further when Apple launches new versions of the iPhone and iPad later this year. And, don't forget, the ruling could yet be overturned by an appeals court or vetoed by President Barack Obama who, given his own patent announcement, clearly wants to overhaul rules and stem litigation. The ruling's main impact, therefore, may simply be to prolong the wider patent battle.
Ruling Won't Break Apple's Skin
The two dominant smartphone makers, Apple and Samsung, are still fighting over the declining share of Americans who don’t have one. They are using slick television commercials and aggressive lawsuits against each other because the devices remain critical to their bottom lines. But some analysts say the phones have reached their technological ceiling. New versions have struggled to wow the reviewers and average consumers, a factor particularly important to tech firms, which often sell more products if they are seen as cutting-edge innovators.
As smartphone market matures, makers race to wow consumers
Mike Altschul, general counsel of wireless industry group CTIA, will testify that a House unlocking bill is a "reasonable balance that protects consumers and carriers alike."
"Because we were not seeking to limit individuals’ non-commercial ability to unlock their devices, and because the bill preserves the important limitations against bulk unlocking included in the Librarian’s 2010 decision, CTIA can support H.R. 1123," Altschul will say at the hearing of the House Judiciary Committee's intellectual property subcommittee, according to a copy of his prepared remarks. CTIA represents all of the major cellular carriers, including Verizon, AT&T, Sprint and T-Mobile.
Wireless industry to back cellphone unlocking bill
A government-financed research institute in the Pearl River Delta boasts an impressive range of specialties, from robotics to nanomedicine to magnetic resonance imaging. But not all the cutting edge developments may be the result of indigenous innovation, according to American prosecutors, who last month charged three Chinese scientists at the New York University School of Medicine with taking bribes to share research findings with their real employers: the Shenzhen institute and a separate Shanghai medical technology company.
Though considerable attention has been focused on Chinese cyberespionage efforts, the institute is at the vanguard of a related push to bolster China’s competitiveness by acquiring overseas technology directly from Chinese scientists working in the United States and other developed countries, say American officials and analysts. Those scientists are heavily recruited to return to China or, in some instances, to share their knowledge while remaining overseas, according to the federal court case and a book released last month by three experts who do China research for the United States government.
China Seen in Push to Gain Technology Insights
After years of quiet and largely unsuccessful diplomacy, the U.S. has brought its persistent computer-hacking problems with China into the open, delivering a steady drumbeat of reports accusing Beijing's government and military of computer-based attacks against America. Officials say the new strategy may be having some impact.
In recent private meetings with U.S. officials, Chinese leaders have moved past their once-intractable denials of cyber espionage and are acknowledging there is a problem. And while there have been no actual admissions of guilt, officials say the Chinese seem more open to trying to work with the U.S. to address the problems.
Cyber experts say calling out China may be working
According to Executive Director Preston Padden, the Expanding Opportunities for Broadcasters Coalition has swelled to 70 stations, mostly in the larger markets where the Federal Communications Commission is most in need of spectrum to reclaim for wireless through incentive auctions. The stations are ones that are at least considering giving up spectrum for auction. Padden said he remains bullish on prospects for a successful auction by the end of 2014.
Padden: Coalition Now Comprises 70 Station Members
Beyond the wishful thinking title “If I Were the FCC Chairman…,” Tuesday’s Free State Foundation seminar provided a prescient checklist of what major telecom organizations are expecting Tom Wheeler, the nominee for that job, to put atop his To Do list.
Predictably, the lobbyists on the panel – from Time Warner Cable, Verizon and Public Knowledge – prioritized their own objectives, although there was overlap (and differing viewpoints) on topics such as the Internet Protocol (IP) transition, spectrum policy and data caps. There was also a fascinating call for the in-coming FCC chairman “to bring in engineers and economists.” Deborah Taylor Tate, a former FCC Commissioner and now an FSF Distinguished Adjunct Senior Follow, in wrap-up remarks after the panelists spoke, jokingly asked “Who in the world needs another lawyer at the FCC?” It was a notable conclusion since Wheeler is not an attorney.
Gigi Sohn, president and CEO of the advocacy group Public Knowledge, put the IP transition atop her list, insisting that “interconnection between networks must be in place as soon as IP is in place.” She also cited data caps, consumer protection and spectrum caps as her top objectives. Sohn agreed the “broken video system” must be fixed, starting with elimination of regulations and action on the All-Vid proceeding, which has not moved. To the surprise of many, Sohn said, in reference to the Circuit Court’s deliberations on Verizon’s challenge to ‘net neutrality rules that Title II “has to be the last resort.” “A narrow fix is better than going through the ‘nuclear option’ of Title II,” Sohn added. During a follow-up discussion session about video policies, Sohn also noted that there is currently “no clear alternative to the [cable] set-top box” and that the “cable card stinks.”
Video Regulation “Certainty,” IP Transition, Net Neutrality Top Lobbyists’ FCC Wish List
Google, BT and a clutch of other web giants and Internet service providers have been put on notice - the UK government wants action on sorting out the problem of harmful content on the Internet.
The Culture Secretary Maria Miller has summoned them to a meeting on 17 June where they will be expected to come up with plans to do more to stop access to material such as child abuse images or material designed to promote terrorism. In her letter to the companies, the culture secretary says there is widespread public concern.
UK Government demands action on web safety
Venezuela freed a US filmmaker it had accused of plotting against the government as top officials from both countries agreed to work to improve strained relations and restore full diplomatic ties.
Timothy Tracy, a U.S. documentary filmmaker, was released from a Venezuelan prison and kicked out of the country, local officials said, more than a month after he was arrested on charges he was a U.S. spy. His lawyer and family have denied those charges. "The gringo, Timothy Tracy, caught spying in our country, has been expelled from national territory," Interior Minister Miguel Rodríguez wrote in a message on his Twitter account confirmed by his spokesman. U.S. and Venezuelan officials said Tracy's liberation helped set a warmer tone for a meeting June 5 between Secretary of State John Kerry and Venezuelan Foreign Minister Elías Jaua in Antigua, Guatemala, where both men were attending an Organization of American States conference.
Venezuela Frees US Filmmaker
The Obama Administration defended the National Security Agency's need to collect telephone records of U.S. citizens, calling such information "a critical tool in protecting the nation from terrorist threats."
While defending the practice, a senior administration official did not confirm a newspaper report that the NSA has been collecting the telephone records of millions of U.S. customers of Verizon under a top secret court order. The administration official spoke on condition of anonymity because the official was not authorized to publicly discuss classified matters. Verizon spokesman Ed McFadden said the company had no comment. The NSA had no immediate comment.
Administration defends collecting phone records