WikiLeaks says it releases files on CIA cyber spying tools

WASHINGTON — Anti-secrecy group WikiLeaks on Tuesday published what it said were thousands of pages of internal CIA discussions about hacking techniques used over several years, renewing concerns about the security of consumer electronics and embarrassing yet another U.S. intelligence agency.

The discussion transcripts showed that CIA hackers could get into Apple Inc iPhones, Google Inc Android devices and other gadgets in order to capture text and voice messages before they were encrypted with sophisticated software.

Cyber security experts disagreed about the extent of the fallout from the data dump, but said a lot would depend on whether WikiLeaks followed through on a threat to publish the actual hacking tools that could do damage.

Reuters could not immediately verify the contents of the published documents, but several contractors and private cyber security experts said the materials, dated between 2013 and 2016, appeared to be legitimate.

A longtime intelligence contractor with expertise in U.S. hacking tools told Reuters the documents included correct “cover” terms describing active cyber programs.

Among the most noteworthy WikiLeaks claims is that the Central Intelligence Agency, in partnership with other U.S. and foreign agencies, has been able to bypass the encryption on popular messaging apps such as WhatsApp, Telegram and Signal.

The files did not indicate the actual encryption of Signal or other secure messaging apps had been compromised.

The information in what WikiLeaks said were 7,818 web pages with 943 attachments appears to represent the latest breach in recent years of classified material from U.S. intelligence agencies.

Security experts differed over how much the disclosures could damage U.S. cyber espionage. Many said that, while harmful, they do not compare to former National Security Agency contractor Edward Snowden’s revelations in 2013 of mass NSA data collection.

“This is a big dump about extremely sophisticated tools that can be used to target individual user devices … I haven’t yet come across the mass exploiting of mobile devices,” said Tarah Wheeler, senior director of engineering and principal security advocate for Symantec.

Stuart McClure, CEO of Cylance, an Irvine, California, cyber security firm, said that one of the most significant disclosures shows how CIA hackers cover their tracks by leaving electronic trails suggesting they are from Russia, China and Iran rather than the United States.

Other revelations show how the CIA took advantage of vulnerabilities that are known, if not widely publicized.

In one case, the documents say, U.S. and British personnel, under a program known as Weeping Angel, developed ways to take over a Samsung smart television, making it appear it was off when in fact it was recording conversations in the room.

The CIA and White House declined comment. “We do not comment on the authenticity or content of purported intelligence documents,” CIA spokesman Jonathan Liu said in a statement.

Google declined to comment on the purported hacking of its Android platform, but said it was investigating the matter.

Snowden on Twitter said the files amount to the first public evidence that the U.S. government secretly buys software to exploit technology, referring to a table published by WikiLeaks that appeared to list various Apple iOS flaws purchased by the CIA and other intelligence agencies.

Apple Inc did not respond to a request for comment.

The documents refer to means for accessing phones directly in order to catch messages before they are protected by end-to-end encryption tools like Signal.

Signal inventor Moxie Marlinspike said he took that as “confirmation that what we’re doing is working.” Signal and the like are “pushing intelligence agencies from a world of undetectable mass surveillance to a world where they have to use expensive, high-risk, extremely targeted attacks.”

CIA cyber programs
The CIA in recent years underwent a restructuring to focus more on cyber warfare to keep pace with the increasing digital sophistication of foreign adversaries. The spy agency is prohibited by law from collecting intelligence that details domestic activities of Americans and is generally restricted in how it may gather any U.S. data for counterintelligence purposes.

The documents published Tuesday appeared to supply specific details to what has been long-known in the abstract: U.S. intelligence agencies, like their allies and adversaries, are constantly working to discover and exploit flaws in any manner of technology products.

Unlike the Snowden leaks, which revealed the NSA was secretly collecting details of telephone calls by ordinary Americans, the new WikiLeaks material did not appear to contain material that would fundamentally change what is publicly known about cyber espionage.

WikiLeaks, led by Julian Assange, said its publication of the documents on the hacking tools was the first in a series of releases drawing from a data set that includes several hundred million lines of code and includes the CIA’s “entire hacking capacity.”

The documents only include snippets of computer code, not the full programs that would be needed to conduct cyber exploits.

WikiLeaks said it was refraining from disclosing usable code from CIA’s cyber arsenal “until a consensus emerges on the technical and political nature of the C.I.A.’s program and how such ‘weapons’ should be analyzed, disarmed and published.”

U.S. intelligence agencies have said that Wikileaks has ties to Russia’s security services. During the 2016 U.S. presidential campaign, Wikileaks published internal emails of top Democratic Party officials, which the agencies said were hacked by Moscow as part of a coordinated influence campaign to help Republican Donald Trump win the presidency.

WikiLeaks has denied ties to Russian spy agencies.

Trump praised WikiLeaks during the campaign, often citing hacked emails it published to bolster his attacks on Democratic Party candidate Hillary Clinton.

WikiLeaks said on Tuesday that the documents showed that the CIA hoarded serious security vulnerabilities rather than share them with the public, as called for under a process established by President Barack Obama.

Rob Knake, a former official who dealt with the issue under Obama, said he had not seen evidence in what was published to support that conclusion.

The process “is not a policy of unilateral disarmament in cyberspace. The mere fact that the CIA may have exploited zero-day [previously undisclosed] vulnerabilities should not surprise anyone,” said Knake, now at the Council on Foreign Relations.

U.S. officials, speaking on condition of anonymity, said they did not know where WikiLeaks might have obtained the material.

In a press release, the group said, “The archive appears to have been circulated among former U.S. government hackers and contractors in an unauthorized manner, one of whom has provided WikiLeaks with portions of the archive.”

U.S. intelligence agencies have suffered a series of security breaches, including Snowden’s.

In 2010, U.S. military intelligence analyst Chelsea Manning provided more than 700,000 documents, videos, diplomatic cables and battlefield accounts to Wikileaks.

Last month, former NSA contractor Harold Thomas Martin was indicted on charges of taking highly sensitive government materials over a course of 20 years, storing the secrets in his home.

source: interaksyon.com

Criminals like Apple iPhones because of encryption — Police

Some criminals have switched to new iPhones as their “device of choice” to commit wrongdoing due to strong encryption Apple Inc has placed on their products, three law enforcement groups said in a court filing.

The groups told a judge overseeing Apple’s battle with the U.S. Department of Justice on Thursday that, among other things, they were aware of “numerous instances” in which criminals who previously used so-called throwaway burner phones had switched to iPhones. They did not list a specific instance.

The brief by the Federal Law Enforcement Officers Association and two others also cited a jailhouse phone call intercepted by New York authorities in 2015, in which an inmate called Apple’s encrypted operating system a “gift from God.”

The government obtained a court order last month requiring Apple to write new software to disable passcode protection and allow access to an iPhone used by one of the shooters in the December killings in San Bernardino, California.

Apple asked that the order be vacated, arguing such a move would set a dangerous precedent and threaten customer security.

Tech industry leaders including Google, Facebook and Microsoft and more than two dozen other companies filed legal briefs on Thursday supporting Apple. The Justice Department received support from law enforcement groups and six relatives of San Bernardino victims.

The law enforcement groups said in their brief that Apple’s stance poses a grave threat to investigations across the country.

The FBI says Rizwan Farook and his wife, Tashfeen Malik, were inspired by Islamist militants when they shot and killed 14 people on Dec. 2 at a holiday party. The couple later died in a shootout with police and the FBI said it wants to read the data on Farook’s work phone to investigate any links with militant groups.

In a filing on Thursday, the San Bernardino County District Attorney’s Office said at least two 911 calls from the time of the shooting reported three assailants, not two.

Even though those reports were “not corroborated,” if in fact there were three attackers it would be important to crack open the iPhone “to identify as of yet unknown co-conspirators,” the District Attorney’s filing stated.

Apple has said it respects the FBI and has cooperated by turning over data in its possession.

The latest request is different, Apple says, because it requires them to crack a phone with a software tool that does not currently exist.

source: interaksyon.com

Apple digital wallet heads to China

SAN FRANCSICO, California — Apple announced a major partnership with China UnionPay on Thursday to put is digital wallet to work in the world’s most populous country.

China UnionPay customers will be able to add their bank cards to Apple Pay on iPhones, iPads, or Apple Watch wearables, the companies said in a joint statement.

“China is an extremely important market for Apple and with China UnionPay and support from 15 of China’s leading banks, users will soon have a convenient, private and secure payment experience,” said Apple senior vice president of software and services Eddy Cue.


The service could be available early next year, pending approval of Chinese regulators.

Apple touts its digital wallet as letting people make purchases easily and securely, encrypting and hiding away personal data to thwart thieves.

UnionPay operates China’s national inter-bank clearing and settlement system and reported having issued more than five billion cards to date.

Apple launched its digital wallet last year in a move capitalizing on the popularity of its mobile devices and taking on rivals such as Google and PayPal, which are also competing in the market.

source: interaksyon.com

UP TO $862 MILLION IN DAMAGES | Apple loses patent lawsuit

NEW YORK — Apple Inc could be facing up to $862 million in damages after a U.S. jury on Tuesday found the iPhone maker used technology owned by the University of Wisconsin-Madison’s licensing arm without permission in chips found in many of its most popular devices.

The jury in Madison, Wisconsin also said the patent, which improves processor efficiency, was valid. The trial will now move on to determine how much Apple owes in damages.

Representatives for the Wisconsin Alumni Research Foundation (WARF) and Apple could not immediately be reached for comment.


WARF sued Apple in January 2014 alleging infringement of its 1998 patent for improving chip efficiency.

The jury was considering whether Apple’s A7, A8 and A8X processors, found in the iPhone 5s, 6 and 6 Plus, as well as several versions of the iPad, violate the patent.

Cupertino, California-based Apple denied any infringement and argued the patent is invalid, according to court papers. Apple previously tried to convince the U.S. Patent and Trademark Office to review the patent’s validity, but in April the agency rejected the bid.

According to a recent ruling by U.S. District Judge William Conley, who is presiding over the case, Apple could be liable for up to $862.4 million in damages.

He scheduled the trial to proceed in three phases: liability, damages, and finally, whether Apple infringed the patent willfully, which could lead to enhanced penalties.

WARF used the patent to sue Intel Corp in 2008, but the case was settled the following year on the eve of trial.

Last month, WARF launched a second lawsuit against Apple, this time targeting the company’s newest chips, the A9 and A9X, used in the just-released iPhone 6S and 6S Plus, as well as the iPad Pro.

source: interaksyon.com

Tech world waits for iPhone news and hopes for magic

SAN FRANCISCO — The tech world on Wednesday will have its eyes on Apple, expecting new versions of the company’s coveted iPhone but hoping for magic in the form of unexpected innovation.

Apple remained mum even as rumors ran rampant about what is in store at an upcoming San Francisco media event.

Analysts and industry insiders predict that Apple will unveil updated iPhones along with an Apple TV revamp that may signal a push into the online television streaming sector, dominated by Netflix.

In trademark enigmatic style, Apple has provided little more than the time and place of the event.

An update to the iPhone lineup is considered a sure thing, since the company has a pattern of doing just that every September.

Improvements are expected to include faster processing and better cameras.

New iPhone models might also feature the “force touch” technology used in the Apple Watch, which allows a user to control a device based on how hard the screen is pressed.

The iPhone remains a hot seller, accounting for the bulk of Apple’s revenue, but upgrades are needed to keep iPhone “at the top of the heap” in the competitive smartphone market, according to Gartner analyst Van Baker.

Apple consistently entices the market with tricked-out new iPhones in time for the crucial year-end holiday shopping season.



Apple TV tuned


Another expected star at the event could be Apple TV, which may get an App Store open to outside developers and perhaps focus on game-play, in a challenge to video game consoles.

The third-generation Apple TV was introduced slightly more than three years ago. The California-based company long downplayed Apple TV as a “hobby” after the original version was released in 2007.

“They are finally revisiting their hobby, the Apple TV,” said Forrester analyst Frank Gillett.

Apple is dabbling with the idea of making online television programming, a move that would challenge established players such as Netflix and Amazon Prime, according to a recent report in show-business magazine Variety.

“Original programing is the only solution to Apple’s biggest problem in the video world — that is, that nobody wants to sell Apple content rights,” said Forrester analyst James McQuivey.

“After watching what happened to the music business when Apple was given the keys to the kingdom, video producers and programmers are more than gun shy about handing the same power to Apple in the world of TV shows.”

Apple became a power to be reckoned with in digital music sales due to the popularity of its mobile devices and iTunes online shop.

While Apple was at the forefront of the shift to digital music, the world of Internet-streamed television already has powerful players such as Netflix and Amazon.


Watching for magic


There is weaker speculation that Apple could introduce a new, bigger iPad in what would be a break from the company’s tradition of unveiling tablet news at a separate event in October.

Tablet sales have cooled overall, and Apple faces the challenge of coming up with an innovation that re-ignites interest in iPads, according to analysts.

One way could be by tying iPads to more cloud services that better anticipate what users do using Apple products.

“I think they can make more magic happen,” Gillett said of App. “That is what I am going to look for.”

source: interaksyon.com

New iPhones deliver big profits for Apple

SAN FRANCISCO — New big-screen iPhones helped propel Apple’s profit and revenue in the last quarter, as the California tech giant smashed earnings expectations.

The company reported on Monday that profit rose 13 percent to $8.5 billion, as revenues jumped to $42.1 billion in the fiscal fourth quarter ending September 27.

Apple said it sold more than 39 million iPhones in the quarter, boosted by last month’s launch of the large-screen iPhone 6 and 6 Plus, which hit some markets on September 19. That compared with 33.8 million in the same period a year ago.


The iPhone accounted for more than $23 billion in revenue, over half of Apple’s overall earnings for the quarter.

Sales of iPads — which may have been lower ahead of the October launch of new models — fell from a year earlier to 12.3 million, producing some $5.3 billion in revenues.

“I view it as a speed bump, not a huge issue,” Apple chief executive Tim Cook said of the decline in iPad sales during a conference call with analysts.

“I know there is a popular view the (tablet) market is saturated, we don’t see that.”

As appetites for tablet have diminished, Apple’s market share has slipped to 25 percent, compared to 70 percent for the rival Android platform, according to Strategy Analytics.

People are holding onto iPads longer than they do iPhones, and Apple is still researching when consumers typically upgrade to new tablets, according to Cook.

He saw some promising developments for iPad sales, including a recent alliance with IBM to improve tablet capabilities for businesses.

“I am very bullish on where we can take iPad over time,” Cook said.

Blow-away quarter
Apple sold 5.5 million Mac computers and 2.6 million iPods in the quarter.

Growing Mac sales came as the overall personal computer market shrank.

“On the Mac, it was just an absolutely blow-away quarter,” Cook said. “The back-to-school season voted, and the Mac won.”

The financial results were the best ever for a September quarter, and the fiscal year that just ended “was one for the record books,” Cook said earlier in a statement.

Apple, the world’s biggest firm by market value, closed its fiscal year with a profit of $39.5 billion on revenues of nearly $183 billion.

Trip Chowdhry at Global Equities Research said Apple’s quarterly report “handsomely beats (expectations) on both top line and bottom line.

“These results validate our investment thesis Apple is a multi-year, multi-product, multi-service and multi-geography growth company.”

Apple shares rose 1.47 percent to $101.23 in after-hours trading following the results.

“Apple continues to hit it out of the park,” independent analyst Jeff Kagan said.

“Apple was showing strong growth, year after year, until a couple years ago. That’s when they fell and that lasted for a while. However, Apple now appears to be back.”

The rise of the ‘phablet’
Amit Daryanani at RBC Capital Markets said Apple’s guidance for the key upcoming holiday season was also ahead of most predictions.

Apple forecast revenue between $63.5 billion and $66.5 billion and gross profit margins between 37.5 percent and 38.5 percent.

“The big upside driver in the quarter was iPhone units,” Daryanani said, adding that Apple’s forecast “leaves plenty for upside surprises.”

Apple last month increased the screen size for its new iPhones, yielding to consumer preference and following a trend started by rivals, including Samsung.

The iPhone 6 Plus is Apple’s first product in the growing market for “phablet” phones, which are increasingly replacing tablets.

Apple’s smartphone market share is strong in the United States but globally was less than 12 percent in the second quarter, before the latest launch, according to research firm IDC.

iPhone sales climbed in China despite the new models not being released there until last week, and sales of Mac computers soared even though the overall market for personal computers there contracted, according to Apple.

“It is just an incredible market where people want the latest technology,” Cook said of China, adding that the California company is investing heavily there.

source: interaksyon.com

Apple did not violate Google patent, says US appeals court

WASHINGTON — Apple Inc does not use patented technology owned by Google unit Motorola Mobility in making its iPhones, an appeals court said on Friday.

The U.S. Court of Appeals for the Federal Circuit upheld a decision by the International Trade Commission in April that Apple did not violate a Google patent to make the popular iPhone.

The smartphone industry has seen dozens of lawsuits on several continents as Apple vies for market share with companies that make smartphones using Google’s Android software.

“We’re disappointed in this decision and are evaluating our options,” Google unit Motorola said in a statement. Apple had no comment on the decision.

Motorola Mobility accused Apple in 2010 of infringing on six of its patents covering technology such as reducing signal noise and programming the device’s touch screen so a user’s head does not accidentally activate it while talking on the phone. The ITC ruled in April 2013 that Apple did not violate any of the six. The appeals court addressed just one of the six patents.

Google acquired the patents in the case – and the lawsuit – when it purchased Motorola Mobility for $12.5 billion in 2012, partly for its library of telecommunications patents.

Google’s Android software, which the company lets handset makers use for free, has become the world’s No. 1 smartphone operating system, ahead of the iOS software used on Apple iPhones.

The ITC, a U.S. trade panel that investigates patent infringement involving imported goods, is a popular venue for patent lawsuits because it can bar the importation of infringing products and because it issues decisions relatively quickly.

The case at the U.S. Court of Appeals for the Federal Circuit is Motorola Mobility LLC v. International Trade Commission and Apple, Inc. The case is No. 2012-1666.

source: interaksyon.com

Apple working on curved iPhone screens, enhanced sensors: report

Apple Inc is developing new iPhone designs including bigger screens with curved glass and enhanced sensors that can detect different levels of pressure, Bloomberg reported on Sunday, citing a unnamed person familiar with the plans.

With screens of 4.7 inches and 5.5 inches, the two new models would be Apple’s largest iPhones, the person told Bloomberg.

The new handsets are still in development and plans haven’t been completed, Bloomberg said citing the person, adding Apple probably would release them in the third quarter of next year.

Two spokeswomen for the Cupertino, California-based technology company did not immediately respond to requests from Reuters seeking comment.

source: interaksyon.com

Fake iOS 7 ‘waterproof advertisement’ fools iPhone users

In a report posted on the Telegraph, a spoof advertisement saying that Apple’s latest mobile operating system can make their iPhones and iPads “waterproof” have fooled some users, and in the process breaking their Apple gadgets.

The fake commercial was said to be identical to an Apple advertising poster complete with image of an Apple mobile device and similar fonts, with a message that says “Update to iOS 7 and become waterproof”.

The poster also also suggested: “In an emergency, a smart-switch will shut off the phone’s power supply and corresponding components to prevent any damage to your iPhone’s delicate circuitry.” And at the bottom, it said: “waterproofing [is] covered by Apple’s warranty policy”.

The U.K.’s Telegraph also reported that “after being shared on social media sites by users encouraging people to try the new feature soon angry complaints appeared from those fooled by the joke.”

According to the report, the prank was started by controversial forum 4Chan, which already had a history of hosting faked material.

Apple iOS 7 is the newest operating system for Apple mobile devices that include the latest iPhone 5S and 5C. iOS 7 will also work with earlier version of the iPads (from iPad version 2) and iPhones (from iPhone 4).

iOS 7 is Apple’s biggest upgrade to the operating system since the mobile device software debuted six years ago, providing major changes in the look, feel, and settings on the hardware.

The iPhone 5s and 5c, already preloaded with iOS 7, went on sale on Friday, September 20, and on Monday, Apple reported selling more than nine million iPhones in its opening weekend.

source: interaksyon.com

Apple sells 9 million new iPhones in three days

Apple Inc sold 9 million new iPhones during their first three days in stores after China joined the list of launch countries for the first time, prompting the company to issue a rosier financial forecast.

Shares in the company closed up 5 percent at $490.64 on Monday after the company said revenue in the fiscal fourth quarter would gravitate towards the high end of its previous forecast for $34 billion to $37 billion.

Apple, which began selling the top-tier iPhone 5s and cheaper, multi-hued iPhone 5c on Friday, rarely adjusts its outlook in the middle of a quarter. Since CEO Tim Cook took the reins, however, the world’s largest tech company has begun to court Wall Street more visibly.

The record sales and beefed-up forecast reinforced expectations of strong demand for Apple’s latest gadgets. Phones based on Google Inc’s Android software and made by the likes of Samsung Electronics have steadily eroded its market share, as customers flocked to lower prices and larger phone sizes proved popular.

Critics had also said the iPhone 5c was priced too high to take advantage of pent-up demand in emerging markets.

“The critics have told you Apple lost its magic,” said Daniel Ernst, an analyst with Hudson Square Research. “Customers are telling you something very different. Clearly, people like the product. That sentiment is almost more important than the number.”

Sales of the new models were nearly double those of the iPhone 5′s 5 million in the first weekend after its launch a year ago, and far surpassed the roughly 6 million that analysts had projected.

But forecasts for Apple’s latest iPhone had proven trickier than in the past, because the company introduced two models simultaneously in 11 countries — including the crucial Chinese market. Apple launched the iPhone 5 in just nine countries.

Another factor was that this time around, Apple signed on NTT DoCoMo, Japan’s largest mobile carrier.

China joined a rollout that included Hong Kong, Singapore, the United States, Australia, Japan, Britain, Canada, Germany, France and Puerto Rico. Previously, Apple began selling phones in China only months after the global launch.

“We underscore one important caveat for investors: Apple’s iPhone seasonality is likely to be exaggerated this cycle because of the addition of NTT DoCoMo, and particularly because of the early launch in China,” said Bernstein Research’s Toni Sacconaghi, who has an “outperform” rating on Apple.

“Although upside exists for the September and December quarters, the risk exists that the fall-off in iPhone sales beginning in the March quarter could be more acute than history, potentially resulting in some downside to estimates.”

Supply limited

Demand for the iPhone 5S has exceeded initial supply and many online orders are scheduled to be shipped in the coming weeks, Apple said. On Friday, long lines formed outside stores in Tokyo, New York, San Francisco and other cities for the new top-of-the-line 5s and the less-expensive 5c. It was the first time Apple launched two iPhone models simultaneously.

The gold-colored version of the 5S, which also comes in silver and gray, was sold out as of Friday and will now ship only in October, according to Apple’s website. As of Monday, the two other colors were also set to be shipped only in October.

“Thanks to all our amazing customers for the fantastic weekend!” said Cook in his second tweet, after he joined Twitter following a visit to Palo Alto Apple store last Friday.

Apple also said gross profit margin would come in near the top of a range of between 36 percent to 37 percent, in line with average forecasts for 36.7 percent. The more optimistic margin forecast should allay investor concerns that, at just $100 less than the 5s, the 5c will draw buyers away from the premium gadget.

Analysts’ average revenue forecast for the quarter stands at $36.1 billion, according to Thomson Reuters I/B/E/S.

Apple, which had grown notorious for providing conservative estimates that it routinely overshot, had resolved to improve its guidance for investors. Analysts have said the change will help rein in some over-the-top financial expectations.

The company said more than 200 million iOS devices are now running iOS 7 mobile software, rolled out just before the iPhone launch.

Apple did not break out separate sales figures for the 5S and 5C. The 5C, which starts at $199 with a contract, offers a touch ID that scans a user’s fingerprint to unlock the phone. The 5C starts at $99 and comes in five colors.

“If Apple could ship so well without even having a larger screen iPhone, which we think it could deliver next year, then Apple is getting over a key hump,” Shebly Seyrafi, an analyst with FBN Securities, said in a note to clients. “We believe that the immediate availability of the phone in China is also a key driver of the strength.”

source: interaksyon.com

Throngs greet Apple’s newest iPhones, gold color sells out

Thousands of iPhone enthusiasts queued up at Apple Inc stores around the world on Friday as two new models of the smartphone went on sale, but Apple’s shares ended slightly lower as investors wait for initial sales figures, due as early as next week.

Long lines formed outside stores in Sydney, Tokyo, New York, San Francisco and other cities as Apple broke with tradition and launched two iPhone models – the new top-of-the-line 5S and the less-expensive 5C – on the same day.

Apple watchers said early signs pointed to more demand for the 5S than last year’s new model. But some cautioned that the size of the crowds this year may not be an accurate gauge because consumers were unable to order the more expensive model online ahead of time, as with previous launches.

“While it is likely some of this line is due to not having an early pre-order option for the 5S, we still believe it shows loyalty to the iPhone remains strong among Apple’s installed base,” said ISI Group analyst Brian Marshall. He estimates Apple will sell about 6 million units in the first three days.

Apple sold more 5 million of the previous iPhone 5 units during its opening weekend last year.

A survey done by Piper Jaffray of 416 customers standing in lines outside of stores in New York, San Francisco and Minneapolis found that 95 percent of the people were planning to buy the 5S. Gene Munster, analyst with Piper Jaffray, estimates Apple will sell 5 million to 6 million iPhones over the weekend.

While Apple’s stock dipped one percent by the close of trade, shares of Avago and TriQuint ended higher after they were identified as component suppliers for the new models.

The gold-colored version of the 5S, which also comes in silver and gray, was already sold out as of Friday and will now ship only in October, according to Apple’s website. The gray and silver versions can still ship in 7 to 10 days.

Supplies of both the new models has been disappointing, a source at a U.S. wireless carrier had told Reuters earlier.

Winning chip firms

Analysts have questioned whether the technology of the new top-end 5S is enough to persuade people to trade up. But those concerns did not seem to apply Jimmy Gunawan, the first in line outside an Apple store in Sydney.

“It’s been one year since iPhone 5. It’s about time to upgrade I guess,” he told Reuters TV.

The new iPhones use chips made by Avago Technologies Ltd, TriQuint Semiconductor Inc and Skyworks Solutions Inc, according to repair firm iFixit, which opened up the iPhone 5S and 5C on Thursday.

Broadcom Corp’s chip is used for the touchscreen controller in both phones, iFixit said. All these suppliers also featured in last year’s iPhone 5.

Another teardown expert, Chipworks – which opened up Apple’s A7 chip – found that Samsung produced the application processor while NXP Semiconductor made the new M7 co-processor chip. The iPhone’s M7 can track motion data continuously without heavily draining the battery.

Including the M7 processor on the same chip as the main A7 processor would be more efficient than adding it as a discrete chip and would help the two processors communicate more easily, said Real World Technologies analyst David Kanter.

Investors have also questioned whether Apple has priced its new plastic-backed 5C too high to compete with cheaper smartphones that use Google’s Android operating system, particularly in China and other emerging markets.

The 5C, which comes in a range of bright colors, carries a price tag of $549 for an unlocked 16 GB model in the United States, though Apple has a history of cutting iPhone prices once a model has been on the market for a while, ISI’s Marshall said.

“We believe it will do the same for 5C after initial pent-up demand is met,” he said in a note.

Tech analysts this week praised the fingerprint scanner in the 5S model, which lets users unlock their devices or make purchases by simply pressing their finger.

The sensor technology that powers the fingerprint scanner in the new iPhone 5S was developed by AuthenTec, which was bought by Apple a year ago, iFixit said.

Apple shares initially traded up, hitting the day’s high of $478.55 on the Nasdaq before easing back to close 1 percent lower at $467.41.

source: interaksyon.com

Hackers offered cash, booze to crack iPhone fingerprint security

BOSTON — Hackers are gearing up for Friday’s iPhone 5S release with a contest to crack the device’s first-ever fingerprint scanner, a high-tech feature that Apple Inc says makes users’ data more secure.

A micro venture capital firm joined a group of security researchers to offer more than $13,000 in cash along with bottles of booze, Bitcoin currency, books and other goodies to the first hacker who breaks the device in a contest promoted on the website istouchidhackedyet.com/.

Arturas Rosenbacher, founding partner of Chicago’s IO Capital, which donated $10,000 to the hacking competition, said that the effort will bring together some of the hacking community’s smartest minds to help Apple identify bugs that it may have missed.

“This is to fix a problem before it becomes a problem,” he said. “This will make things safer.”

Meanwhile, Forbes.com reported that a 36-year-old soldier living in Spain’s Canary Islands, Jose Rodriguez, has already uncovered a security vulnerability affecting iOS 7, which Apple began distributing to existing iPhone and iPad customers on Wednesday.

The publication said that it is possible to bypass the lock screen of those devices in seconds to access photos, email, Twitter and other applications. It included a video demonstration on its website and advice on how users could thwart the bypass technique: onforb.es/16IU6Y3

Apple spokeswoman Trudy Muller told Reuters that the company was preparing a fix that it would deliver as an update to iOS 7 when it was ready. “Apple takes user security very seriously,” she said.

Among those getting ready for the hacking contest is David Kennedy, a former U.S. Marine Corps cyber-intelligence analyst who did two tours in Iraq and now runs his own consulting firm, TrustedSec LLC.

“I am just waiting to get my hands on it to figure out how to get around it first,” the founder of the DerbyCon hacking conference told the Thomson Reuters Global Markets Forum this week. “I’ll be up all night trying.”

Why worry?

Security experts worry about the implications of using the module to grant access to sensitive data on the phone and potentially enabling mobile purchases.

The fingerprint scanner on the top-of-the-line iPhone lets users unlock their devices or make purchases on iTunes by simply pressing their finger on the home button. It has been hailed as a major step in popularizing the use of biometrics in personal electronics.

Security engineer Charlie Miller, known in hacking circles for uncovering major bugs in the iPhone as well as circumventing security in Apple’s App Store, said it could take fewer than two weeks for Kennedy or some other smart hacker to get around the new lock.

Once they’re in, they could gain access to the cornucopia of data typically stored on a user’s iPhone and might potentially be able to buy goods from iTunes and Apple’s App store.

Miller declined to comment on the hacking contest or potential security vulnerabilities in the fingerprint reader.

To be sure, experts say they know of nothing intrinsically wrong with Apple’s fingerprint reader, based on what the company has so far disclosed. Reviewers this week gushed over its ease of use and reliability.

The reader’s sapphire crystal sensor is embedded in the phone’s home button and reviews the fingerprint as a user touches it to verify his or her identity.

Data used for verification is encrypted and stored in a secure enclave of the phone’s A7 processor chip. No information is sent to any remote servers, including Apple’s iCloud system.

HD Moore, a hacking expert and chief researcher with the security software maker Rapid7, said such protections mean “the bar is a little bit higher,” but that certainly won’t discourage hackers from trying to break the new technology.

“This is definitely something to target and something people will want to go after,” he said.

Nothing personal

Apple shouldn’t take hackers’ enthusiasm personally.

All major electronics products are subjected to similar scrutiny as new features are rolled out, including devices from Google Inc, Microsoft Corp and Samsung Electronics Co.

For example, in 2012, Charlie Miller led a team that demonstrated techniques for taking over smartphones running Google’s Android software through their use of near-field communications, or NFC, a wireless technology used for sharing data or making purchases at point-of-sales terminals.

Bugs are often disclosed by “white hats,” hackers who unearth flaws and report them so manufacturers can repair them, preventing criminal exploitation. The hope is the good guys find them before “black hats” uncover them.

White hats have found multiple security issues with iPhones, iPads and in the App store since Apple launched its first smartphone in 2007. They say that scrutiny has helped make it one of the most secure devices on the market today.

Apple executives said at last week’s iPhone launch that the new fingerprint reader, dubbed Touch ID, will help make phones far more secure by dint of its ease of use.

About half of all smartphone users don’t bother to use current screen-locking technology because of the inconvenience of keying in multiple-digit passwords. Apple is betting users may be far more willing to avail themselves of a solution that requires a single finger-swipe.

“The technology within Touch ID is some of the most advanced hardware and software we put in any device,” Dan Riccio, senior vice president of hardware engineering, said at the event.

Kennedy said he needs to examine the new iPhone to figure out how to best attempt an attack.

He said his choices include hacking the software that analyzes the fingerprint data, or physically opening up the phone and connecting it to a custom-built device that would impersonate Apple’s fingerprint reader.

He added that it might be possible to lift a user’s fingerprint from elsewhere on the device and somehow make a clone of it.

Rich Mogul, an analyst with the security research firm Securosis, said he planned to use it and expects it to be widely adopted despite the fact that hackers are circling.

“Nobody has gotten their hands on it to see what the weaknesses are and how easy it is to crack,” Mogul said.

“We’ll have to wait to see.”

source: interaksyon.com

Even with the iPhone launch, the bigger news is iOS 7

WASHINGTON — With consumers eagerly awaiting the release of two new iPhones this week, the more dramatic change may be in the software, not the hardware.

The new mobile operating system called iOS 7 became available Wednesday, providing users of iPhones and iPads a bolder look, which may be a shock for some, but which Apple hopes will keep its fans happy and draw new customers.

“It is a major upgrade,” said Gerry Purdy, analyst and consultant with Compass Intelligence who follows mobile technology.

“This is the first big thing that (Apple chief executive) Tim Cook has implemented, which puts all the software and hardware design under one roof, to have a unified experience across products.”

While the new iPhone 5S and 5C, set to be released Friday, have received a lukewarm response, some analysts say the bolder statement from Apple comes in the new operating system, designed to keep people in the Apple “ecosystem.”

The new operating system “has a different look, a different feel,” said Ramon Llamas, analyst with the research firm IDC.

“People are going to have to rethink how they do things with their phone, and Apple is asking people to make a leap of faith.”

With Apple seeking to regain traction in a mobile market dominated by the Google Android system, Llamas said iOS 7 will be a key test for Apple, because the new iPhones have failed to wow consumers.

“The feedback I’m getting is that people say (the new iPhones) are nice but they will wait for next year’s model.”

A small number of journalists who were allowed to review the new iPhone and iOS 7 underscored the dramatic change in the operating system.

“If you’re coming brand new to iOS 7 and have been ignoring the Internet for the past three months, you’re going to be in for a visual shock,” wrote Darrell Etherington of the tech news site TechCrunch.

“The look is bound to be controversial; Apple has opted for bright, bold colors with more clean lines and far fewer textures, shadows and gradients. There is still some depth to the OS, however, with transparency effects giving a sense of background and foreground elements.”

David Pogue of The New York Times said even with the iPhone launch, “the bigger news is iOS 7.”

“The look of iOS 7 is sparse, white — almost plain in spots. No more fake leather, fake woodgrain, fake green felt, fake yellow note paper,” Pogue writes.

“The complete absence of graphic embellishments makes it especially utilitarian — in both senses of the word. That’s good, because whatever button or function you need is easier to find; it’s bad, because, well, it can look a little boring.”

Walt Mossberg at AllThingsD called the new operating system “a big improvement,” adding: “The icons have been redesigned to be flatter and simpler, but they appear to float over your wallpaper, giving the effect of depth.”

Apple says the new system has more than 200 new features, including improved multitasking, sharing, new camera apps, male and female voices for its Siri software, and the much-anticipated iTunes Radio.

The new software has drawn considerable attention even as the iPhone launch appears to be less spectacular than those in the past: Apple has said little about sellouts or delivery delays, and few expect the kinds of queues typical of iPhone debuts.

Purdy said that Apple may inadvertently hurt new iPhone sales by releasing the software upgrade for older models.

“It allows people with the iPhone 4 or 5 to get all the benefits of the Apple environment from a software standpoint, and therefore reduces the absolute need to upgrade the physical device,” he told AFP.

The free upgrade helps Apple solidify its user base, the analyst said, even for those unwilling to buy a new device.

“It makes it attractive to stay in the walled garden of Apple,” Purdy said, even without a revolutionary hardware change.

“This allows Apple to keep its users, though it may not change the direction of the Android ecosystem,” Purdy added.

“But Apple isn’t out to win market share. They want to produce the best products in the market and they’re doing a good job at that.”

source: interaksyon.com

Apple looking at bigger iPhone screens, multiple colors — sources

Apple Inc is exploring launching iPhones with bigger screens, as well as cheaper models in a range of colors, over the next year, said four people with knowledge of the matter, as it takes a cue from rival Samsung Electronics.

The moves, which are still under discussion, underscore how the California-based firm that once ruled the smartphone market is increasingly under threat from its aggressive South Korean competitor. Samsung has overtaken Apple in market share through the popularity of its bigger-screen Galaxy “phablets” and by flooding the market with a range of products at different prices.

Apple is looking at introducing at least two bigger iPhones next year — one with a 4.7-inch screen and one with a 5.7-inch screen — said the sources, including those in the supply chain in Asia. They said suppliers have been approached with plans for the larger screens, but noted it is still unclear whether Apple will actually launch its flagship product in the larger sizes.

“They constantly change product specifications almost to the final moment, so you’re not really sure whether this is the final prototype,” said one person with direct knowledge of the matter.

Apple declined to comment.

Under pressure

Apple’s possible shift to offer what is often referred to as “phablets” – chunkier smartphones not quite big enough to qualify as tablets – comes as the long-time consumer and investor darling faces pressure to deliver more than one new handset model a year. Critics say its pace of innovation has slowed since the death of legendary co-founder Steve Jobs.

The iPhone 5 launched last September was the first to veer away from the Apple phone’s 3.5-inch screen, which Jobs famously deemed “the perfect size for consumers” and had been used in every iPhone since the iconic device was unveiled in 2007.

The current iPhone 5 has one of the smaller screens among the best-selling smartphones in the mobile market, where consumers spend more time browsing the web and streaming content. Samsung’s Galaxy S4 and Galaxy Note 2 have 5-inch and 5.5-inch screens, respectively.

For this year, Apple is expected to launch two new models, widely referred to as the iPhone 5S, with new fingerprint technology, and a cheaper version in plastic casing, supply chain sources have said. Apple plans to dress up the cheaper phone in a range of 5-6 colors to differentiate it from the more expensive model that has traditionally come only in black and white.

The U.S. firm has discussed a price of $99 for the cheaper phone, the timing of which could slip to next year, one of the people said. It’s not yet clear what the final price would be.

Apple – whose revenue growth has decelerated from the heady days of 2010 when it introduced the iPad and when the iPhone was the world’s top selling smartphone – has sought ways to re-energize its flagship line.

Broader product range

Analysts say the company needs a cheaper gadget to push on in growth markets in China and India, and to counter Samsung’s edge in having phones priced up and down the spectrum. China, the world’s biggest smartphone market, is set to grow 48 percent this year, outpacing the global increase of 31 percent, according to industry forecasts.

While Apple only offers a single phone model across all markets, it has successfully marketed the iPod music player and its iPad in different sizes and at varying prices. Asked at last month’s AllThingsD industry conference why Apple hasn’t launched different sized iPhones, CEO Tim Cook said: “We haven’t so far. That doesn’t shut off the future.”

He explained that the range of iPods serve different audiences and needs. “On the phone, that’s the question. Are we now at a point to serve enough people that we need to do that?”

Cook noted a larger screen comes with trade-offs on features such as battery life, resolution and brightness.

Test production for both the standard and cheaper iPhone models aims to start next month, with mass production ramping up in August to meet a September launch target, two people said.

“Trial production was originally planned to start in June, but the mixing of colors is taking longer than expected as Apple has very high and idealistic standards,” said one source in Asia, adding 20 million plastic iPhones are expected to ship in the October-December quarter.

Japan’s Sharp Corp and Japan Display and South Korea’s LG Display will supply the panels for the aluminum iPhone 5S and the plastic iPhone, while Hon Hai Precision Industry will assemble the higher-end phone and Pegatron will put together the cheaper model.

source: interaksyon.com

Apple sells 2 million new phones, sets early order record

Demand for Apple Inc’s new iPhone 5 has exceeded initial supply as the company booked 2 million orders in one day and pushed the delivery date for some preorders to next month.

Apple said on Monday that it would deliver most preordered phones as planned by Friday, the first day of delivery, but many would not be available until October.

It is not unusual for Apple products to sell out the first day. Last October, the company booked 1 million orders for the previous iPhone, the 4S, in the first 24 hours. That beat Apple’s previous one-day record of 600,000 sales for the iPhone 4.

Shares of Apple were up 1 percent at $698.50 in early trading on Monday.

The latest strong preorders could mean a strong holiday quarter for Apple. The iPhone is the marquee device for the company and accounts for half of its revenue.

Given the demand for the device so far and Apple’s aggressive rollout of it internationally, some analysts raised their sales estimates.

Canaccord Genuity technology analyst Michael Walkley said he now expected Apple to ship 9 million to 10 million iPhone 5s from Friday to September 29, the last day of fiscal 2012.

Baird Equity Research William Power estimates that Apple may have booked sales of roughly 5 million iPhone 5s in the first three days. Last year, it sold 4 million iPhone 4S units in that time.

The new phone, which will appear in stores on Friday for walk-in purchases, has a larger, 4-inch screen and is slimmer and far lighter than the previous model. The iPhone 5 supports the faster 4G network and also comes with a number of software updates, including Apple’s new in-house maps feature.

Apple began taking orders for the iPhone 5 at midnight Pacific time on Friday (0700 GMT Saturday). Shipping dates for the smartphone slipped by a week within an hour of the start of preorders.

On Monday morning, Apple’s U.S. store, at www.apple.com, showed preorders placed at that time would take two to three weeks to ship.

AT&T sets sales record

AT&T, the No. 2 U.S. mobile service provider, said demand over the weekend had made the iPhone 5 the fastest-selling iPhone the company has ever offered.

AT&T did not disclose how many iPhones it had sold, but said the iPhone 5 was still available for preorder and would go on sale September 21 at AT&T retail stores.

The phone’s other carriers, Verizon Communications Inc and Sprint Nextel Corp, also showed similar delays in shipping the phone.

European carriers also reported brisk sales. France Telecom’s Orange said bookings for the new phone “have been very strong, breaking the records of what we saw for the iPhone 4 or 4S.” But the carrier said it could deliver preorders on time.

Apple previously said it would start shipping the iPhone 5 by September 21 in the United States and most of the major European markets, such as France, Germany and the UK. The phone goes on sale on September 28 in 22 other countries.

Analysts have forecast that Apple will have sold more than 30 million iPhones, including older models, by the end of September.

source: interaksyon.com