China

Apple is selling the iPhone 7 and iPhone 8 in Germany again

Posted by | antitrust, Apple, apple inc, China, Europe, Federal Trade Commission, Germany, Intel, iPhone, lawsuit, licensing, Mobile, mobile phones, patent litigation, patents, Qorvo, Qualcomm, smartphone, standards-essential patents | No Comments

Two older iPhone models are back on sale in Apple stores in Germany — but only with Qualcomm chips inside.

The iPhone maker was forced to pull the iPhone 7 and iPhone 8 models from shelves in its online shop and physical stores in the country last month, after chipmaker Qualcomm posted security bonds to enforce a December court injunction it secured via patent litigation.

Apple told Reuters it had “no choice” but to stop using some Intel chips for handsets to be sold in Germany. “Qualcomm is attempting to use injunctions against our products to try to get Apple to succumb to their extortionist demands,” it said in a statement provided to the news agency.

Apple and Qualcomm have been embroiled in an increasingly bitter global legal battle around patents and licensing terms for several years.

The litigation follows Cupertino’s move away from using only Qualcomm’s chips in iPhones after, in 2016, Apple began sourcing modem chips from rival Intel — dropping Qualcomm chips entirely for last year’s iPhone models. Though still using some Qualcomm chips for older iPhone models, as it will now for iPhone 7 and iPhone 8 units headed to Germany.

For these handsets Apple is swapping out Intel modems that contain chips from Qorvo which are subject to the local patent litigation injunction. (The litigation relates to a patented smartphone power management technology.) 

Hence Apple’s Germany webstore is once again listing the two older iPhone models for sale…

Newer iPhones containing Intel chips remain on sale in Germany because they do not containing the same components subject to the patent injunction.

“Intel’s modem products are not involved in this lawsuit and are not subject to this or any other injunction,” Intel’s general counsel, Steven Rodgers, said in a statement to Reuters.

While Apple’s decision to restock its shelves with Qualcomm-only iPhone 7s and 8s represents a momentary victory for Qualcomm, a separate German court tossed another of its patent suits against Apple last month — dismissing it as groundless. (Qualcomm said it would appeal.)

The chipmaker has also been pursing patent litigation against Apple in China, and in December Apple appealed a preliminary injunction banning the import and sales of old iPhone models in the country.

At the same time, Qualcomm and Apple are both waiting the result of an antitrust trial brought against Qualcomm’s licensing terms in the U.S.

Two years ago the FTC filed charges against Qualcomm, accusing the chipmaker of operating a monopoly and forcing exclusivity from Apple while charging “excessive” licensing fees for standards-essential patents.

The case was heard last month and is pending a verdict or settlement.

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Lenovo Watch X was riddled with security bugs, researcher says

Posted by | api, Bluetooth, China, computer security, computing, encryption, Gadgets, lenovo, Password, smartwatches, spokesperson, Wearables, web server, Zhongguancun | No Comments

Lenovo’s Watch X was widely panned as “absolutely terrible.” As it turns out, so was its security.

The low-end $50 smartwatch was one of Lenovo’s cheapest smartwatches. Available only for the China market, anyone who wants one has to buy one directly from the mainland. Lucky for Erez Yalon, head of security research at Checkmarx, an application security testing company, he was given one from a friend. But it didn’t take him long to find several vulnerabilities that allowed him to change user’s passwords, hijack accounts and spoof phone calls.

Because the smartwatch wasn’t using any encryption to send data from the app to the server, Yalon said he was able to see his registered email address and password sent in plain text, as well as data about how he was using the watch, like how many steps he was taking.

“The entire API was unencrypted,” said Yalon in an email to TechCrunch. “All data was transferred in plain-text.”

The API that helps power the watch was easily abused, he found, allowing him to reset anyone’s password simply by knowing a person’s username. That could’ve given him access to anyone’s account, he said.

Not only that, he found that the watch was sharing his precise geolocation with a server in China. Given the watch’s exclusivity to China, it might not be a red flag to natives. But Yalon said the watch had “already pinpointed my location” before he had even registered his account.

Yalon’s research wasn’t just limited to the leaky API. He found that the Bluetooth-enabled smartwatch could also be manipulated from nearby, by sending crafted Bluetooth requests. Using a small script, he demonstrated how easy it was to spoof a phone call on the watch.

Using a similar malicious Bluetooth command, he could also set the alarm to go off — again and again. “The function allows adding multiple alarms, as often as every minute,” he said.

Lenovo didn’t have much to say about the vulnerabilities, besides confirming their existence.

“The Watch X was designed for the China market and is only available from Lenovo to limited sales channels in China,” said spokesperson Andrew Barron. “Our [security team] team has been working with the [original device manufacturer] that makes the watch to address the vulnerabilities identified by a researcher and all fixes are due to be completed this week.”

Yalon said that encrypting the traffic between the watch, the Android app and its web server would prevent snooping and help reduce manipulation.

“Fixing the API permissions eliminates the ability of malicious users to send commands to the watch, spoof calls, and set alarms,” he said.

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New figures highlight the iPhone’s rough quarter in China

Posted by | Apple, China, hardware, huawei, iPhone, Mobile | No Comments

When Apple issued revised guidance for its quarterly earnings last month, the company singled out China as a primary driver for its disappointing result. Sure enough, iPhone revenue declined 15 percent year over year, and now IDC’s got some more insight into the role the Chinese market may have played in that decline.

New figures out this week show right around a 20 percent dip in shipments in China y-o-y for the quarter. That’s a pretty dramatic drop for a market that’s been a key factor in Apple’s growth plans, going forward. That marks a drop from 12.9 to 11.5 percent of the market. Last month, Tim Cook highlighted some of the reasons for the drop in the world’s largest smartphone market.

Among the reasons cited are international trade tensions and an overall slowing Chinese economy. Of course, Apple’s not alone in seeing a decline. Smartphone shipments are down almost across the board, owing to slower upgrade cycles. Most phones are already pretty good, so people are holding onto them for longer. It’s also worth noting that this year’s XS didn’t mark as dramatic an upgrade as its predecessor. 

Tellingly, however, a number of native smartphone makers are up in the country, including, notably, Huawei, which saw a 23.3 percent uptick for the quarter, suggesting that the ascendant company ate into Apple’s market share.

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First China, now Starbucks gets an ambitious VC-funded rival in Indonesia

Posted by | alibaba, alibaba group, Android, Apps, Asia, carsharing, China, East Ventures, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, Insignia Ventures Partners, internet access, Jakarta, JD.com, managing partner, mcdonalds, online food ordering, online marketplaces, pizza hut, Singapore, Southeast Asia, starbucks, temasek, Tencent, United States, WeWork | No Comments

Asia’s venture capital-backed startups are gunning for Starbucks .

In China, the U.S. coffee giant is being pushed by Luckin Coffee, a $2.2 billion challenger surfing China’s on-demand wave, and on the real estate side, where WeWork China has just unveiled an on-demand product that could tempt people who go to Starbucks to work or kill time.

That trend is picking up in Indonesia, the world’s fourth largest country and Southeast Asia’s largest economy, where an on-demand challenger named Fore Coffee has fueled up for a fight after it raised $8.5 million.

Fore was started in August 2018 when associates at East Ventures, a prolific early-stage investor in Indonesia, decided to test how robust the country’s new digital infrastructure can be. That means it taps into unicorn companies like Grab, Go-Jek and Traveloka and their army of scooter-based delivery people to get a hot brew out to customers. Incidentally, the name “Fore” comes from “forest” — “we aim to grow fast, strong, tall and bring life to our surrounding” — rather than in front of… or a shout heard on the golf course.

The company has adopted a similar hybrid approach to Luckin, and Starbucks thanks to its alliance with Alibaba. Fore operates 15 outlets in Jakarta, which range from “grab and go” kiosks for workers in a hurry, to shops with space to sit and delivery-only locations, Fore co-founder Elisa Suteja told TechCrunch. On the digital side, it offers its own app (delivery is handled via Go-Jek’s Go-Send service) and is available via Go-Jek and Grab’s apps.

So far, Fore has jumped to 100,000 deliveries per month and its app is top of the F&B category for iOS and Android in Indonesia — ahead of Starbucks, McDonald’s and Pizza Hut .

It’s early times for the venture — which is not a touch on Starbuck’s $85 billion business; it does break out figures for Indonesia — but it is a sign of where consumption is moving to Indonesia, which has become a coveted beachhead for global companies, and especially Chinese, moving into Southeast Asia. Chinese trio Tencent, Alibaba and JD.com and Singapore’s Grab are among the outsiders who have each spent hundreds of millions to build or invest in services that tap growing internet access among Indonesia’s population of more than 260 million.

There’s a lot at stake. A recent Google-Temasek report forecast that Indonesia alone will account for over 40 percent of Southeast Asia’s digital economy by 2025, which is predicted to triple to reach $240 billion.

As one founder recently told TechCrunch anonymously: “There is no such thing as winning Southeast Asia but losing Indonesia. The number one priority for any Southeast Asian business must be to win Indonesia.”

Forecasts from a recent Google-Temasek report suggest that Indonesia is the key market in Southeast Asia

This new money comes from East Ventures — which incubated the project — SMDV, Pavilion Capital, Agaeti Venture Capital and Insignia Ventures Partners, with participation from undisclosed angel backers. The plan is to continue to invest in growing the business.

“Fore is our model for ‘super-SME’ — SME done right in leveraging technology and digital ecosystem,” Willson Cuaca, a managing partner at East Ventures, said in a statement.

There’s clearly a long way to go before Fore reaches the size of Luckin, which has said it lost 850 million yuan, or $124 million, inside the first nine months in 2018.

The Chinese coffee challenger recently declared that money is no object for its strategy to dethrone Starbucks. The U.S. firm is currently the largest player in China’s coffee market, with 3,300 stores as of last May and a goal of topping 6,000 outlets by 2022, but Luckin said it will more than double its locations to more than 4,500 by the end of this year.

By comparison, Indonesia’s coffee battle is only just getting started.

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Don’t worry, this rocket-launching Chinese robo-boat is strictly for science

Posted by | artificial intelligence, Asia, autonomous vehicles, Boats, China, climate change, Gadgets, hardware, robotics, science, TC | No Comments

It seems inevitable that the high seas will eventually play host to a sort of proxy war as automated vessels clash over territory for the algae farms we’ll soon need to feed the growing population. But this rocket-launching robo-boat is a peacetime vessel concerned only with global weather patterns.

The craft is what’s called an unmanned semi-submersible vehicle, or USSV, and it functions as a mobile science base — and now, a rocket launch platform. For meteorological sounding rockets, of course, nothing scary.

It solves a problem we’ve seen addressed by other seagoing robots like the Saildrone: that the ocean is very big, and very dangerous — so monitoring it properly is equally big and dangerous. You can’t have a crew out in the middle of nowhere all the time, even if it would be critical to understanding the formation of a typhoon or the like. But you can have a fleet of robotic ships systematically moving around the ocean.

In fact this is already done in a variety of ways and by numerous countries and organizations, but much of the data collection is both passive and limited in range. A solar-powered buoy drifting on the currents is a great resource, but you can’t exactly steer it, and it’s limited to sampling the water around it. And weather balloons are nice, too, if you don’t mind flying it out to where it needs to be first.

A robotic boat, on the other hand, can go where you need it and deploy instruments in a variety of ways, dropping or projecting them deep into the water or, in the case of China’s new USSV, firing them 20,000 feet into the air.

“Launched from a long-duration unmanned semi-submersible vehicle, with strong mobility and large coverage of the sea area, rocketsonde can be used under severe sea conditions and will be more economical and applicable in the future,” said Jun Li, a researcher at the Chinese Academy of Sciences, in a news release.

The 24-foot craft, which has completed a handful of near-land cruises in Bohai Bay, was announced in the paper. You may wonder what “semi-submersible” means. Essentially they put as much of the craft as possible under the water, with only instruments, hatches and other necessary items aboveboard. That minimizes the effect of rough weather on the craft — but it is still self-righting in case it capsizes in major wave action.

The USSV’s early travels

It runs on a diesel engine, so it’s not exactly the latest tech there, but for a large craft going long distances, solar is still a bit difficult to manage. The diesel on board will last it about 10 days and take it around 3,000 km, or 1,800 miles.

The rocketsondes are essentially small rockets that shoot up to a set altitude and then drop a “driftsonde,” a sensor package attached to a balloon, parachute or some other descent-slowing method. The craft can carry up to 48 of these, meaning it could launch one every few hours for its entire 10-day cruise duration.

The researchers’ findings were published in the journal Advances in Atmospheric Sciences. This is just a prototype, but its success suggests we can expect a few more at the very least to be built and deployed. I’ve asked Li a few questions about the craft and will update this post if I hear back.

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Foxconn pulls back on its $10 billion factory commitment

Posted by | alibaba, Amazon, Asia, China, Foxconn, Gaming, Government, india, Kakao, korea, Media, nexon, Policy, wisconsin | No Comments

Well that didn’t last long.

In 2017, Foxconn announced the largest investment of a foreign company in the United States when it selected Mount Pleasant, Wisconsin for a new manufacturing facility. Buttressed by huge economic development grants from Wisconsin, an endorsement from President Trump, and Foxconn CEO Terry Gou’s vision of a maker America, the plant was designed to turn a small town and its environs into the futuristic “Wisconn Valley.”

Now, those dreams are coming apart faster than you can say “Made in America.”

In an interview with Reuters, a special assistant to Gou says that those plans are being remarkably scaled back. Originally designed to be an advanced LCD factory, the new Foxconn facility will instead be a much more modest (but still needed!) research center for engineers.

It’s a huge loss for Wisconsin, but the greater shock may be just how obvious all of this was. I wrote about the boondoggle just a few weeks ago, as had Bruce Murphy at The Verge a few weeks before that. Sruthi Pinnamaneni produced an excellent podcast on Reply All about how much the economic development of Mount Pleasant tore the small town asunder.

The story in short: the economics of the factory never made sense, and economics was always going to win over the hopes and dreams of politicians like Wisconsin governor Scott Walker, who championed the deal. Despite bells and whistles, televisions are a commodity product (unlike, say, airfoils), and thus the cost structure is much more compatible with efficient Asian supply chains than with American expensive labor.

Yet, that wasn’t the only part of the project that never made any sense. Foxconn was building in what was essentially the middle of nowhere, without the sort of dense ecosystem of suppliers and sub-suppliers required for making a major factory hum. (Plus, as a native of Minnesota, I can also attest that Wisconsin is a pile of garbage).

Those suppliers are everything for manufacturers. Just this past weekend, Jack Nicas at the New York Times observed that Apple’s advanced manufacturing facility in Austin, Texas struggled to find the right parts it needed to assemble its top-of-the-line computer, the Mac Pro:

But when Apple began making the $3,000 computer in Austin, Tex., it struggled to find enough screws, according to three people who worked on the project and spoke on the condition of anonymity because of confidentiality agreements.

In China, Apple relied on factories that can produce vast quantities of custom screws on short notice. In Texas, where they say everything is bigger, it turned out the screw suppliers were not.

There are of course huge manufacturing ecosystems in the United States — everything from cars in Detroit, to planes in Washington, to advanced medical devices in several major bio-hubs. But consumer electronics is one that has for the most part been lost to Singapore, Taiwan, Korea, and of course, China.

Geopolitically, Foxconn’s factory made a modicum of sense. With the increasing protectionism emanating from Western capitals, Foxconn could have used some geographical diversity in the event of a tariff fight. The company is Taiwanese, but manufacturers many of its products on the mainland.

And of course, a research center is still an enormous gain for a region of Wisconsin that could absolutely use high-income, professional jobs. Maybe the process of rolling out a next-generation manufacturing ecosystem will take more time than originally anticipated, but nothing is stopping further expansion in the future.

Yet, one can’t help but gaze at the remarkable naïveté of Wisconsin politicians who offered billions only to find that even massive subsidies aren’t enough. It’s a competitive world out there, and the United States has little experience in these fights.

India may put friction on foreign firms to protect domestic startups

Indian Prime Minister Narendra Modi. (MONEY SHARMA/AFP/Getty Images)

One of the major battles for tech supremacy is over the future of the Indian IT market, which is rapidly bringing more than a billion people onto the internet and giving them robust software services. I’ve talked a bit about data sovereignty, which mandates that Indian data be stored in Indian data centers by Indian companies, pushing out foreign companies like Amazon, Google, and Alibaba.

Now, it looks like India is taking a page from the Asian tiger-school of development, and is going to increasingly favor domestic firms over foreign ones in key industries. Newley Purnell and Rajesh Roy report in the WSJ:

The secretary of India’s Telecommunications Department, Aruna Sundararajan, last week told a gathering of Indian startups in a closed-door meeting in the tech hub of Bangalore that the government will introduce a “national champion” policy “very soon” to encourage the rise of Indian companies, according to a person familiar with the matter. She said Indian policy makers had noted the success of China’s internet giants, Alibaba Group Holding Ltd. and Tencent Holdings Ltd. , the person said. She didn’t immediately respond to a request for more details on the program or its timing.

The idea of national champions is simple. Unlike the innovation world of Silicon Valley, there are obvious sectors in an economy that need to be fulfilled. Food and clothes have to be sold, deliveries made, all kinds of industrial goods need to be built. Rather than creating a competitive market that requires high levels of duplicate capital investment, the government can designate a few companies to take the lead in each market to ensure that they can invest for growth rather than in, say, marketing costs.

If done well, such policies can rapidly industrialize a country’s economic base. When done poorly, the lack of competition can create lethargy among entrepreneurs, who have already won their markets without even trying.

The linchpin is whether the government pushes companies to excel and sets aggressive growth targets. In Korea and China, the central governments actively monitored corporate growth during their catch-up years, and transferred businesses to new entrepreneurs if business leaders failed to perform. Can India push its companies as hard without market forces?

As the technology industry matures in the West, entrepreneurs will look for overseas as their future growth hubs. The challenge is whether they will be let in at all.

Video game geopolitics

Nexon’s MapleStory2 game is one of its most profitable (Screenshot from Nexon) .

Korea and Japan are two of the epicenters of the video game industry, and now one of its top companies is on the auction block, raising tough questions about media ownership.

Nexon founder Kim Jung Ju announced a few weeks ago that he was intending to sell all of his controlling $9 billion stake in the leading video game company. The company has since executed something of a multi-stage auction process to determine who should buy those shares. One leading candidate we’ve learned is Kakao, the leading internet portal and chatting app in Korea.

The other leading candidate is China-based Tencent, which owns exclusive distribution rights in China of some of Nexon’s most important titles.

Tencent has been increasingly under the sway of China’s government, which froze video game licensing last year as it worked to increase content regulation over the industry. Now the question is whether it will be politically palatable to sell a leading star of Korea’s video game industry to its economic rival.

From the Financial Times:

Mr Wi added that Nexon would be an attractive target for Tencent, which pays about Won1tn in annual royalties to the South Korean game developer. But selling the company to Tencent would be “politically burdensome” for Mr Kim, given unfavourable public opinion in South Korea towards such a sale, he cautioned.

“Political risks are high for the deal. Being criticised for selling the company to a foreign rival, especially a Chinese one, would be the last thing that Mr Kim wants,” said Mr Wi.

Such concerns around Chinese media ownership have become acute throughout the world, but we haven’t seen these concerns as much in the video game industry. Clearly, times have changed.

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What’s Next

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This newsletter is written with the assistance of Arman Tabatabai from New York

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It’s time to pay serious attention to TikTok

Posted by | Apps, China, india, kids, Memes, Mobile, Social, TC, tiktok, Video | No Comments

If you haven’t been paying attention to TikTok, you haven’t been paying attention. The short-form video app hailing from Beijing’s ByteDance just had its biggest month ever with the addition of 75 million new users in December — a 275 percent increase from the 20 million it added in December 2017, according a recent report from Sensor Tower.

Despite its rapid rise, there are still plenty of people — often, older people — who aren’t quite sure what TikTok is.

TikTok is often referred to as a “lip-syncing” app, which makes it sound like it’s some online karaoke experience. But a closer comparison would be Vine, Twitter’s still sorely missed short-form video app whose content lives on as YouTube compilations.

While it’s true that TikTok is home to some standard lip-syncing, it’s actually better known for its act-out memes backed by music and other sound clips, which get endlessly reproduced and remixed among its young users.

Its tunes are varied — pop, rap, R&B, electro and DJ tracks serve as backing for its 15-second video clips. But the sounds may also be snagged from YouTube music videos (see: I Baked You A Pie above), SoundCloud or from pop culture — like weird soundbites from Peppa Pig or Riverdale — or just original creations.

These memes-as-videos reference things familiar to Gen Z, like gaming culture (see below). They come in the form of standalone videos, reactions, duets, mirrors/clones and more.

The app has been growing steadily since it acquired its U.S.-based rival Musical.ly in November 2017 for north of $800 million, then merged the two apps’ user bases last August.

This gave TikTok the means to grow in Western markets, where it has attracted the interest of U.S. celebrities like Jimmy Fallon and Tony Hawk, for example, along with YouTubers on the hunt for the next new thing.

But unlike Vine (RIP), YouTube or Instagram, TikTok doesn’t yet feel dominated by micro-celebs, though they certainly exist.

Instead, its main feed often surfaces everyday users — aka, amateurs — doing something cute, funny or clever, with a tacit acknowledgement that “yes, this is an internet joke” underlying much of the content.

Okay, okay.

Sometimes these videos are described as “cringey.” 

But that’s because those of us trying to talk about TikTok are old(er) people who grew up on the big ol’ mean internet.

Cringey, frankly, is an unfair label, as it dismisses TikTok’s success in setting a tone for its community. Here, users will often post and share unapologetically wholesome content, and receive less mocking than elsewhere on the web — largely because everyone else on TikTok posts similar “cringey” content, too.

You might not know this, however, if your only exposure to TikTok comes from YouTube’s TikTok Cringe Compilations. But spend a day in the (oddly addictive) TikTok feed, and you’ll find a whole world of video that doesn’t exist anywhere else on the web — including on YouTube. Videos that are weird, sure — but also fun to watch.

It’s a stark comparison to the existing social media platforms.

Users today are engaged in the culture wars on Twitter (ban the Nazis! protect free speech!), while YouTubers are gaming the algorithm with hateful, exploitive, dangerous and otherwise questionable content that freaks out advertisers. And Facebook is, well, contributing to war crimes and the toppling of democracy.

Meanwhile, TikTok presents an alternative version of online sharing. Simple, goofy, irreverent — and frankly, it’s a much needed reset.

For example, some of the popular TikTok memes have included videos of kids proclaiming what a great mom they have, as they drag her into frame, or they remind people to pick up litter and conserve water. They might give themselves silly, but self-affirming makeovers where, afterwards, they cite themselves not as “cute” but rather “drop. dead. gorgeous.”

They might spend hours setting up gummy bears as Adele concert-goers, learning how to do a shuffle dance up a set of stairs or in a dance battle their dad. Or they may showcase some special talent — drawing, painting, gymnastics, dance or skateboarding, perhaps. They do science experiments, make jokes or use special effects for a little video magic.

They shout out “hit or miss!” in public places and wait to see who answers. (Look it up.)

Sometimes it’s dumb, Sometimes it’s clever. But it’s addictive.

Of course, it is still the internet. And TikTok isn’t perfect.

The app has also been the subject of troubling reports about its “dark” side, which is reportedly filled with child predators and teens bullying and harassing one another. It’s not clear, however, that TikTok’s affliction with these matters is any worse than any other large, social, public-by-default app of its size.

And unlike some apps, concerned parents — or the users themselves — can set a TikTok account to private, turn off commenting, hide the account from search, disable downloads, disallow reactions and duets and restrict an account from receiving messages.

It is concerning, however, that under-13 kids are setting up social media accounts without parental consent. (But, uh, have you seen Fortnite and Roblox? This is what kids do. At least the TikTok main feed isn’t worrisome, we’ve found.)

The bigger issue, though — and one that could ultimately prove damaging to TikTok — is whether it will be able to keep up with content filtering and takedown requests, or handle its security and privacy protection issues as it scales up.

Content and community aren’t the only things contributing to TikTok’s growth.

While Vine may have introduced the concept of short-form video, TikTok made video editing incredibly simple. You don’t need to be a video expert to put together clips with a range of effects. It’s the Instagram for the mobile video age — in a way that Instagram itself won’t be able to reproduce, having already aligned its community with influencers and advertisers.

TikTok’s sizable user base, meanwhile, is due not only to its growth in Western markets, but because of its traction in emerging markets like China and India.

This allowed TikTok to rank No. 4 worldwide across iOS and Android, combined, according to App Annie’s data on the most-downloaded apps of 2018. On iOS, TikTok was the No. 1 most-downloaded app of the year, mainly thanks to China.

At times last year, TikTok even ranked higher than Facebook, Instagram, Snapchat and YouTube.

Both App Annie and Sensor Tower agree that TikTok scored the No. 3 position for most installs among all apps worldwide in 2018.

Now, TikTok is growing in India, says Sensor Tower.

The country accounted for 27 percent of new installs between December 2017 and December 2018, and last month was the source for 32.3 million of TikTok’s 75 million total new downloads — a 25x increase from last year.

Some of this growth comes from ad spend, according to a report from Apptopia, which examined the app’s widened use of ad networks. (It’s also driving people bonkers with its YouTube ads).

The revenue is starting to arrive, as well.

Worldwide, users spent $6 million tipping their favorite live streamers, a 253 percent year-over-year jump from December 2017’s total of $1.7 million, Sensor Tower estimates. But live streaming is not the default activity on TikTok — it added the feature after shutting down Musical.ly’s live streaming app, Live.ly.

Above: full-screen ad in TikTok when app is first launched; spotted today

Think this is the first real ad campaign I’ve seen on @tiktok_us. @kerrymflynn pic.twitter.com/zt3JcSYCz0

— chris harihar (@chrisharihar) January 26, 2019

Above: an ad appearing earlier this month

TikTok is also starting to test in-app advertising, and is being eyed by agencies as a result. When you launch TikTok, you may see a full-page splash screen ad of some kind — though the company has not officially launched ad products.

But the brands are starting to take notice. This week, for example, TikTok collaborated with SportsManias, an officially licensed NFL Players Association partner, for the introduction of NFL-themed AR animated stickers in time for the Super Bowl. The move feels like a test for how well branded content will perform within the TikTok universe, but the company says it’s “not an ad deal.”

The company also declined to say how many are today using TikTok.

However, parent company ByteDance had publicly stated last year that it had 500 million monthly active users when it announced the app’s rebranding post-merger. It has yet to release new numbers for its global user base.

That said, ByteDance just shared updated stats for China only, on all versions of the TikTok app (including the non-Google Play Android version). It says that TikTok now has 500 million monthly active users in China alone.

Sensor Tower today estimates TikTok has grown to nearly 800 million lifetime installs, not counting Android in China.

Factoring in those Android in China installs, it’s fair to say this app has topped 1 billion downloads.

Here comes the new new internet, folks. It’s big, dominated by emerging markets, mobile, video, meme-ified, and goes viral both online and off.

So if you haven’t been paying attention to TikTok, you may want to get started.

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China finally grants a game license to Tencent

Posted by | Asia, Beijing, China, game publisher, Gaming, ma huateng, netease, shenzhen, Software, Tencent, WeChat | No Comments

Tencent has finally come out of a prolonged freeze on game approvals as Beijing granted licenses to two of its mobile games this month.

According to a notice published Thursday by China’s State Administration of Press, Publication, Radio, Film and Television, Tencent is one of nearly 200 games assigned licenses in January.

That’s big news for the Shenzhen-based firm, which has seen its share price plummet in the past months because the licensing halt crippled its ability to generate gaming revenues. Tencent is best known for its immensely popular WeChat messenger, but games contribute a bulk of its earnings.

Both games approved are for educational purposes so are unlikely to generate income at the level of Tencent’s more lucrative role-playing titles, such as Honor of Kings. Tencent has been at the center of government criticisms on games deemed harmful and addictive, and the firm has subsequently introduced so-called “utility games” in 2018 designed to promote traditional Chinese culture, science and technology.

That said, the tech giant could be raking in big bucks from a third-party game that also got approved this week. The title comes from China’s third-largest game publisher, Perfect World, with exclusive publishing rights handled by Tencent.

“The game is the mobile version of the extremely successful massively multiplayer online role-playing game with the same name,” Daniel Ahmad, an analyst at market research firm Niko Partners, suggests to TechCrunch. “We note that Perfect World Mobile is a core game that is set to be a high revenue generating title when it launches.”

China resumed its game approval process in December after a nine-month hiatus during which it worked to reshuffle its main regulating bodies for games. However, it left Tencent, the country’s biggest game publisher, and runner-up NetEase off its first batch of approved titles that month.

NetEase also scored its first post-freeze license in January and had better luck than Tencent, winning a nod for a multiplayer online role-playing game.

Despite the thawing, industry experts warn that approvals will come at a much slower rate than before as Chinese regulators look to more closely monitor game content, putting the burden on developers and publishers to decipher new industry rules.

“The size of the gaming company does not matter. It matters how fast the company can be adapting to the new set of rules and guidelines,” Shenzhen-based game consultant Ilya Gutov told TechCrunch in December.

“As the review and approval process for games resumes, we are confident that Tencent will be producing more compliant and higher-quality cultural work for society and the public,” a Tencent spokesperson said in December, highlighting its plan to churn out content that fits into China’s ideological agenda.

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Xiaomi teases a double-folding smartphone… ohhai digital triptych!

Posted by | Android, Asia, Bin Lin, China, foldable smartphone, Gadgets, Mobile, mobile phones, phablet, samsung galaxy s8, smartphone, smartphones, tablet computer, Xiaomi | No Comments

China’s Xiaomi has become the latest smartphone maker to tease a folding smartphone, dropping the below video clip of its president and co-founder, Bin Lin, fondling the device on social media today.

The twist is the tablet does not have a single center parting but rather two folds that divide it into three panels, with Xiaomi claiming in a tweet: “It is the world’s first ever double folding phone.”

The video shows Bin contemplating a tablet-sized touchscreen device before quickly turning it on its side, taking it into landscape orientation, where he performs the party trick — folding two panels of screen, one at each side, back behind the tablet to form a slightly chunky looking phablet.

Excited to share this video of a special Xiaomi smartphone from our President and Co-founder Bin Lin . It is the world’s first ever double folding phone — that’s pretty cool, isn’t it? #xiaomi #foldingphone #technology pic.twitter.com/iBj0n3vIbW

— Wang Xiang (@XiangW_) January 23, 2019

The video is edited so it cuts from front view to back at the moment of the fold so the actual folding action is not seen from the front. But from the back the two folded wings go dark after being folded.

When the video cuts back to the front there’s a slight spinning of the screen, as the software appears to grapple momentarily with the new form factor, before it stablizes in portrait orientation.

The phablet form of the device resembles the bezel-less “infinity display” design of a handset like the 2018 Samsung Galaxy S8 — albeit more squat looking than the tall 18.5:9 aspect ratio of the S8.

Xiaomi’s tweet teaser does not include any details about how near (or indeed far off) a market launch of the device might be. We’ve reached out to the company with questions about the prototype and any launch plans.

Update: A spokesman pointed us to a post on Bin’s Weibo account where he asks his followers for feedback on the prototype, and suggests Xiaomi is still weighing up whether to bring the folding phone to market, writing: “If you like it, we will consider making a mass production machine in the future.”

He also asks for name suggestions, saying Xiaomi is toying with two: Xiaomi Dual Flex or Xiaomi MIX Flex.

“This symmetrical double-folded form perfectly combines the experience of the tablet and mobile phone, which is both practical and beautiful,” he writes [translated via Google Translate], saying building the prototype entailed “conquering a series of technical problems such as flexible folding screen technology, four-wheel drive folding shaft technology, flexible cover technology, and MIUI adaptation.”

“We made the first folding screen mobile phone, which should be the world’s first double folding mobile phone,” he adds, again taking a tentative tone vis-à-vis a potential launch time frame.

In recent months a handful of folding smartphone prototypes have been demoed by mobile makers, including a booklet-style folding slab from Samsung — trailed as incoming for years but finally teased officially last fall — which also appears to transforms into a rather chunky handset.

An invite to a February 20 Samsung launch event for the forthcoming Galaxy S10, sent out to press two weeks ago, also included a conspicuous centerfold in its graphic teaser. Ergo, a commercial launch from Samsung looks imminent.

While, at CES, a little known Chinese OEM called Royole beat others to the punch by showing off a folder in the flesh. In tablet form the Android-powered FlexPai, as the device was christened, is 7.8-inches. But once folded in half the gizmo is left with an unsightly gap between the screen pieces, bulking up the resulting smartphone.  

Xiaomi’s triptych looks to offer a more pleasing design for handling the inevitable air gap created by a folding screen by concealing the ends in the middle of the dual folded panels. Side tucks certainly look more visually pleasing.

That said, two folds could mean a higher risk of screen problems — if the folding mechanism isn’t robust enough to handle lots of bending back and forth.

It’s also far from clear whether consumers will generally take to folding phones, or snub them as fiddly and gimmicky.

In recent years smartphone design has converged around a phablet-sized touchscreen and little else. So adding any fresh mechanical complication is a bit of a risk given how smooth and hermetically sealed smartphones have otherwise become.

But a clutch of Android OEMs are going to try their luck, regardless. And with a saturated smartphone market, stalled growth and competition fiercer than ever, you can see why they’re pushing the boat out — or, well, bending the screen back — to try to stand out.

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German court tosses Qualcomm’s latest iPhone patent suit

Posted by | apple inc, China, Europe, Federal Trade Commission, Germany, Intel, iPhone, lawsuit, Mobile, patent, Qualcomm, smartphones | No Comments

Qualcomm has had a patent lawsuit against Apple dismissed by a court in Mannheim, Germany, as groundless (via Reuters).

The chipmaker had argued Intel -powered iPhones infringed a transistor switch patent it holds. But in an initial verbal decision the court disagreed. Qualcomm has said it will appeal.

In a statement, Don Rosenberg, Qualcomm’s executive VP and general counsel, said: “Apple has a history of infringing our patents. Only last month the Munich Regional Court affirmed the value of another of Qualcomm’s cutting-edge patents against Apple’s infringement and ordered a ban on the import and sale of impacted iPhones in Germany. That decision followed a Court-ordered ban on patent-infringing iPhones in China as well as recognition by an ITC judge that Apple is infringing Qualcomm’s IP. The Mannheim court interpreted one aspect of our patent very narrowly, saying that because a voltage inside a part of an iPhone wasn’t constant the patent wasn’t infringed.  We strongly disagree and will appeal.”

We’ve reached out to Apple for comment. Update: The company told us: “We are happy with the decision and thank the court for their time and diligence.  We regret Qualcomm’s use of the court to divert attention from their illegal behavior that is the subject of multiple lawsuits and proceedings around the world.”

The pair have been embroiled in an increasingly bitter and global legal battle in recent years, as Apple has shifted away from using Qualcomm chips in its devices.

Two years ago the FTC also filed charges against the chipmaker accusing it of anticompetitive tactics in an attempt to maintain a monopoly (Apple is officially cited in the complaint). That trial began early this month.

Cupertino has also filed a billion-dollar royalty lawsuit accusing Qualcomm of charging for patents “they have nothing to do with”.

While the latest court decision in Mannheim has gone in Apple’s favor, a separate ruling in Germany late last year went Qualcomm’s way. And earlier this month Apple was forced to withdraw the iPhone 7 and 8 from its retail stores in Germany, after Qualcomm posted €1.34BN in security bonds to enforce the December court decision — which related to a power management patent.

Although the affected iPhone models remain on sale in Germany via resellers. Apple is also appealing.

Qualcomm also recently secured a preliminary injunction banning the import and sales of some older iPhone models in China. Again, Apple is appealing.

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