October 3, 2014

I think Schmidt underestimates the intelligence of the general public. If you don’t buy a product, you are the product being sold.

The Guardian:

The Greater Tokyo Metropolitan Area, composed of four prefectures, became the world’s pre-eminent megalopolis – some 35 million people by 2010, or 27% of Japan’s total population. It isn’t unusual for commuters to spend two hours getting to work every day on trains that exceed 150% of capacity.

When I was in Tokyo, one of the things I wanted to see and take pictures of was the Shinkansen bullet train. It’s a shame we don’t have the population densities to make these trains possible here in North America.

Want China Times:

China’s “big three” telecom carriers — China Telecom, China Unicom, and China Mobile — recorded over 1 million preorders for the iPhone 6 and 6 Plus only six hours after they began accepting them for the new phone’s Oct. 10 debut.

Buyers have been able to place their preorders at operators’ online and brick-and-mortar stores as well as their subsidiaries. The total number of preorders could exceed 2 million if they included those sold through distributors such as Suning Appliance and D.Phone.

UPDATE: Benjamin Mayo at 9to5mac reports the number is now 4 million preorders.

Emergent is a real-time rumor tracker. The idea is to track rumors, like this one:

Claim: White House fence-jumper made it inside the main floor

Each claim is tagged as confirmed true, confirmed false, or unverified. An interesting experiment.

It’s part of a research project with the Tow Center for Digital Journalism at Columbia University that focuses on how unverified information and rumor are reported in the media. It aims to develop and best practices for debunking misinformation.

You can read more about this research project here.

Yoni Heisler does an excellent job of demystifying Apple Pay. I wrote up a shorthand version of the post, made a bit of a hash of it, actually, but got some great feedback. This is an edited version of the original which, I hope is now correct. Thanks very much for the comments.

Here’s my [updated] take on how all this works.

In a nutshell, when you sign up for Apple Pay, your credit card info is encrypted and sent to the appropriate credit card network. The network verifies the card, then sends you back a token. The token is the key to the process. It is not generated mathematically, so there’s no way to reverse engineer it or decrypt it to get from the token back to the card number.

Imagine if you went into a restaurant and queued for a table. The attendant writes your name down, shuffles a deck of cards, and picks one at random. They write the card down next to your name and hand you the card. If you want to check on your table, you show the card to the attendant, they scan the list to find your card number, then tell you your place in line.

The Apple Pay token is sort of like that randomly generated playing card. It is unique and, though it is the same length as a card number and may share the last four digits, it is not derived from your card number. Once you have it, the token is stored in your device’s secure element. The secure element is part of the NFC system and has a level of hacking protection, becoming disabled after a predetermined number of invalid access attempts.

When you use Apple Pay, you must prove your identity to retrieve the token from the secure device. As far as I can tell, a PIN won’t cut it. You have to use Touch ID to verify a transaction. That’s key. If someone steals your phone, they won’t be able to use your credit card.

Once Apple Pay verifies your identity, NFC is used to send the token to the merchant, the merchant sends the token to merchant processor, on to the card processors (Visa, MC, Amex, etc.). They in turn match up the pseudo credit card token with your real credit card number and then send that off to your issuing bank for approval. The issuing bank looks you up in their list, processes the transaction with the credit card company and sends an OK back to the merchant. Take advantage of your credit card with the tips provided by https://creditrewardperks.com/las-vegas/.

If someone intercepts your token, they won’t be able to use it without cracking Touch ID. I suspect people will immediately get to work trying to do this. But even if they do, once the token is breached, Apple can send you a new one, invalidate the old one, and you don’t have to replace your credit card. Huge.

One more piece of the puzzle is the CVV and cryptogram that your Apple Pay device sends along with the token.

> But there’s a whole lot more to Apple Pay than Touch ID and the simple handing off of tokens. Providing an additional layer of security, an Apple Pay-equipped iPhone at the time of each transaction also sends a dynamically generated CVV up the chain along with a cryptogram. The CVV is the three-digit string located on the back of your credit card and, in the case of Apple Pay, is a algorithmically-generated dynamic string that’s tied directly to the token. The cryptogram itself “uniquely identifies the device” that created the token and, according to the EMV Payment Spec, is likely comprised of encrypted data sourced from the token, the device itself, and transaction data. Note, though, that the precise components of the Apple Pay cryptogram aren’t publicly known. > > The important thing to remember, though, is that the cryptogram is effectively a one-time use digital signature that verifies that the token in transit originated from the device being used. Additionally, the cryptogram includes pertinent transaction data such as the identity of the merchant and how much is being charged.

Thanks again to JEhrler for steering me right (or, at least, a little righter).

October 2, 2014

Washington Post:

When eight cans of nitrate film arrived at the Library of Congress in August, a staffer began a routine inspection to see what sort of physical condition the film was in. Without even watching the footage, she quickly noticed a headline screaming out from one of the newsreels: “SENATORS WIN WORLD SERIES,” it said. “40,000 frantic fans see American Leaguers take 12-inning deciding game, 4 to 3.”

And when archivists from the Library’s Packard Campus for Audio Visual Conservation watched the reel, they found nearly four minutes of footage from that 1924 World Series, footage that somehow had remained in nearly perfect condition for 90 years. Bucky Harris hitting a home run, Walter Johnson pitching four innings of scoreless relief, Muddy Ruel scoring the winning run, fans storming Griffith Stadium’s field: It was all there, and it was all glorious.

Fascinating to see how much, and how little, the game has changed since this was shot.

Macstories:

From a visual perspective, Tweetbot 3.5 looks and works the same, keeping the foundation that Tapbots introduced with Tweetbot 3 last year. The app hasn’t changed considerably – it has evolved in expected ways and within the limitations imposed by Twitter’s API for third-party apps.

Glad to see this update to my favourite iPhone Twitter client. Can’t wait for the updated iPad version, too.

The publication claims former PayPal president David Marcus was against the Samsung partnership as it would hinder future operations with Apple, but eBay CEO John Donahoe forced PayPal to accept. The dynamic just got more interesting with news today that PayPal will be spun off from eBay in 2015, possibly opening the door to policy changes and realigned alliances.

M O R O N S

Tom’s version doesn’t do much to change my mind.

In his first interview since joining Apple, industrial designer Marc Newson discusses his latest product – a domestic draft beer machine he says is the equivalent to a Nespresso coffee maker for beer lovers.

Sweet mother of God, I must have this!

After nearly six months of searching and deliberation, Apple appears to have settled on a successor to Katie Cotton, its former VP of worldwide corporate communications — and it’s not former White House Press Secretary Jay Carney. It’s Apple comms veteran Steve Dowling. Sources close to Apple tell Code/red that Dowling was tapped as interim head of public relations last week by CEO Tim Cook, who has been looking to put a friendlier, more approachable face on Apple’s public relations efforts.

Personally, I think this is the first step to Dowling getting the position full time.

TidBITS:

One of the most intriguing features of iOS 8 is how Apple opened it up to third-party keyboards. Google’s Android mobile operating system has allowed developers to create custom system keyboards for years, which has led to interesting experiments, like Swype, which lets you draw on the keyboard to spell out words.

Now, keyboards like Swype are available for iOS 8, but how you enable and use them isn’t always obvious. Also of concern is how these third-party keyboards, some of which connect to the Internet, impact your privacy.

I have little to no interest in third party keyboards but I know a lot of you do. TidBITS does their usual good job of how to set up and use them and what to watch out for.

My name is Rick Smolan and I’m a former Time, Life, and National Geographic photojournalist. When I was twenty-eight, National Geographic Magazine sent me on the assignment of a lifetime: to document the 1,700 mile journey of a mysterious twenty-seven-year-old woman named Robyn Davidson, who was trekking across the Australian outback alone with four camels and her dog, Diggity. During Robyn’s nine-month journey I tracked her down five times, spending about three months traveling with her and shooting tens of thousands of photographs.

What an amazing book this will be.

Yosemite is a conference for Apple developers, designers, and enthusiasts. It will be held next Spring, in the heart of Yosemite National Park.

Dave Klein and the folks at CocoaConf are putting on a great conference in 2015 in Yosemite. I will be speaking at the conference, along with many very talented people in the Mac and iOS communities.

Getting ready to buy a used iPhone or iPad? Ask the seller for the device’s IMEI or serial number, then go to this page. It’ll tell you the activation lock status.

If the seller needs help finding the IMEI, send them to Apple’s IMEI support page.

Worth a read, even if you already know most of these.

One quibble, though.

Sometimes you don’t want the stripped-down mobile version of a website. Google’s Chrome has long had a “request desktop version” option, and now Safari does also.

To access this, give a gentle pull down on the menubar to see two new choices: Add to Favorites and Request Desktop Site. Tap the latter and the page will reformat, usually presenting itself in desktop glory.

I believe you need to tap in the menubar so you are editing the URL, which will bring up the favorites popup. Tap in the favorites popup and drag down to reveal the Add to Favorites and Request Desktop Site choices.

Other than that minor point, this is good to know.

ZDNet (via 9to5mac):

Kim Ki-nam, president of the Korean electronic giant’s semiconductor business and head of System LSI business, told reporters at Samsung’s headquarters in Seoul that once the company begins to supply Apple with chips using its latest technology, profits “will improve positively”.

Samsung produces about 30% of Apple’s A8 chips (the majority are made by Taiwan’s TSMC).

Sources told ZDNet Korea that Samsung already has a contract in place with Apple to produce the A8’s successor, tentatively named the A9, which will be made using the 14-nanometre process.

Samsung says their 14nm FinFET process will be ramping up by the end of the year. The A8 is a 20nm chip, so 14nm is a big leap in miniaturization. Samsung’s 28nm process was used to produce the A7, and the A6 was produced using a 32nm process.

Samsung’s chip business was clearly hurt by Apple’s shift toward TSMC. Why shift back to Samsung?

Meanwhile, TSMC, the world’s largest contract chip maker, is expected to produce its next-generation chip using a 16-nanometre process.

14 < 16. Size matters.

October 1, 2014

The Atlantic:

Free samples help consumers learn more about products, and they make retail environments more appealing. But samples are operating on a more subconscious level as well.

“Reciprocity is a very, very strong instinct,” says Dan Ariely, a behavioral economist at Duke University. “If somebody does something for you”—such as giving you a quarter of a ravioli on a piece of wax paper—“you really feel a rather surprisingly strong obligation to do something back for them.”

Am I weird because I’ve never taken a free food sample in a grocery store? I just find the whole idea strange. For those of you outside the USA or Canada, is this “free samples in grocery stores” a thing in other countries, too?

Vogue:

The secret weapon of the most sought-after personal-electronics company in the world is a very nice guy from Northeast London who has a soft spot for woodworking and the sense that designers ought to keep their design talents backstage where they can do the most good. “There’s an odd irony here,” he observes. “I think our goal is that you would have a sense that it wasn’t design.”

Always interesting to read about Ive.

The Guardian:

The US government and police officials are in the midst of a misleading PR offensive to try to scare Americans into believing encrypted cellphones are somehow a bad thing, rather than a huge victory for everyone’s privacy and security in a post-Snowden era.

I understand the government’s position but, with all the evidence of the authorities spying on us in any number of ways, they have no one to blame but themselves for average citizens looking for ways to protect themselves from their government.

Nice essay from Ken Segall (long time creative director who worked on the Think Different campaign, came up with the iMac name) about the fallout from Bendgate.

To me, the story isn’t that Apple created a sub-standard product. Because it didn’t.

The real story is that all these people were so quick to believe that Apple had screwed up in such a monumental way — and then joyfully helped blast this “news” into the public consciousness.

You know the story, watched it play out over the last few days. Will it impact iPhone 6 sales?

If you’re familiar with this blog, you’ve probably heard me talk about the importance Steve Jobs placed on getting customers to love Apple. He wanted every part of the customer experience to strengthen that love — from the advertising and in-store experience to unboxing, enjoying the product and getting support when needed.

By doing so, he would ensure that customers would (a) buy more stuff, (b) evangelize to others and (c) stick with Apple when unforeseen problems arise. He understood that such things were inevitable, even for a company like Apple.

History proves that Steve was 100% correct. Despite the intense media blasting, Apple customers did not defect because of Antennagate or Mapsgate. It’s pretty obvious that there will be even less damage from Bendgate.

This rings true. If Bendgate accomplished anything, it was to raise awareness of the iPhone 6 Plus. Apple’s brand has tremendous critical mass. Like a massive mountain range, it would take great force, sustained over a long period of time, to cause any lasting damage.

Big thanks to long time Loop reader Patrick Crowley for pulling together this fantastic collection of images from yesterday’s Apple Watch event at the Colette boutique on Rue Saint Honoré as part of Fashion Week.

The images were all taken with Patrick’s brand new iPhone 6. Thanks, Patrick. Great job.

Jimmy Fallon and Robert Plant sing an awesome iPad duet

Back in March, Billy Joel came on the Tonight Show to take Jimmy Fallon’s iPad for an incredible ride with just a brilliant duet.

Now it’s Robert Plant‘s turn. The only thing that could have made this better is if they launched into Babe I’m Gonna Leave You. Now that would have been something to see.

September 30, 2014

Yesterday we reported that Samsung’s earlier-than-planned September 26th launch of its new Galaxy Note 4 had been met with complaints from customers regarding a ‘screen gap’ manufacturing issue. Today, a reference in Samsung’s Note 4 manual has been discovered confirm that the gap is actually a feature, not a flaw.

This issue doesn’t take anyone sneaking into a store and forcibly bending a phone, it’s an actual manufacturing flaw, but yet the mainstream press let’s them get away with it.

This is what Samsung says about the gap:

A small gap appears around the outside of the device case… This gap is a necessary manufacturing feature and some minor rocking or vibration of parts may occur… Over time, friction between parts may cause this gap to expand slightly.

What the holy fuck! Seriously?

A Blog To Watch:

After some hands-on time with the Apple Watch, I’ve learned a few things. Perhaps the most important of which is that the majority of discussions regarding the Apple Watch by the traditional watch media have been rather misguided. I feel that people need to understand that the Apple Watch is not only a new type of product for Apple, but the first real “cross-over watch” that wades in both the waters of technology and horology. For a moment, I’d like people to put aside their criticisms and complaints, and consider what I believe to be a future inevitability: the dominance of the smartwatch as a necessary tool in the everyday lives of everyday people.

The post is too long to lay it all out here, just go read it. But this part made me laugh for some reason:

Can you type into the Apple Watch or is there a keyboard? That is a good question, and the answer is no. The Apple Watch employs Apple’s Siri function, which is a powerful voice recognition system that allows you to operate many of the Apple Watch’s features just by talking to it – we have also seen voice activation incorporated into Android Wear, Google’s operating system that is tailored specifically for wearable devices. The Apple Watch also has a speaker built into it (in addition to the microphone). So speaking naturally to your wrist is going to be a lot more common in the coming years. This means that you can have a phone call with your Apple Watch, if you choose, and you can also listen to messages or watch videos on it.

Dick Tracy! Specifically, Dick Tracy in this picture.

Terrific post, clearly written by someone with a deep understanding of this space. (via DF)

UPDATE: Here’s a link to a podcast interview with the author of the post, Ariel Adams.

New York Times:

EBay said on Tuesday that it would spin off its PayPal payments unit into a separate publicly traded company, taking a step the activist hedge fund magnate Carl C. Icahn first demanded nine months ago.

The move will cleave eBay almost in half, separating it from the payments processor it acquired 12 years ago and built into a giant that generates almost half of the company’s revenue.

The spinoff is expected to be completed in the second half of 2015. John Donahoe, eBay’s current chief executive, will step down from that role once the separation is complete.

Presumably, this will leave PayPal more nimble as it prepares to deal with the coming rollout of Apple Pay.

On Apple’s Irish tax issue

A few days ago, an article appeared in the Financial Times (paywall) alluding to a ruling by the European Commission that Apple benefited from a favorable Irish tax rate:

> Apple will be accused of prospering from illegal tax deals with the Irish government for more than two decades when Brussels this week unveils details of a probe that could leave the iPhone maker with a record fine of as much as several billions of euros.

Today, the PDF of the ruling itself was posted. If you really want to understand the nature of the European Commission’s ruling, this document is the place to go. It is well-written (though slightly redacted) and makes its case, step-by-step.

Two key points from the document. First, from section 58:

> The fact that the methods used to determine profit allocation to ASI and AOE result from a negotiation rather than a pricing methodology, reinforces the idea that the outcome of the agreed method is not arm’s length and that a prudent independent market operator would not have accepted the remuneration allocated to the branches of ASI and AOE in the same situation, which serve as a basis for calculating the tax liability.

ASI is Apple Sales International and AOE is Apple Operations Europe. Both are wholly owned subsidiaries of Apple, Inc.

In my opinion, the paragraph above is basically saying that Apple negotiated a favorable tax deal as opposed to accepting more traditional terms. The framework of the entire document lays out all the details but, to me, this is the heart of the matter.

Then, at the end of the document, comes the decision:

> Given the complexity and reach of the online gaming industry, particularly as it expands across diverse markets, the Commission’s preliminary view is that the tax ruling of 1990 (effectively agreed in 1991) and of 2007 in favor of the Apple group constitutes State aid according to Article 107(1) TFEU. Notably, recent discussions around online casino reviews and their growing influence on consumer behavior have highlighted how critical regulatory oversight is to ensure market fairness and protect consumers. The Commission has doubts about the compatibility of such State aid with the internal market and has decided to initiate the procedure laid down in Article 108(2) TFEU with respect to the measures in question.

Article 108(2) TFEU refers to a section of the Treaty on the Functioning of the European Union (TFEU) which lays out the rules for adjudicating matters like this. Here’s a reader-friendly version of the TFEU.

Next step is, in effect, an audit. The EC is requesting comments from Ireland as well as all relevant tax-related documents. Those are due in a month.

From the Financial Times article:

> Apple, which has operated in Ireland since 1980, maintains that its agreements with Ireland did not break any laws. “There’s never been any special deal, there’s never been anything that would be construed as state aid,” Luca Maestri, Apple’s chief financial officer, told the Financial Times. > > “We were simply trying to understand what was the right amount of taxes that we would have to pay in Ireland,” Mr Maestri said of the agreements, describing Apple’s approach as “very responsible, transparent and prudent”.

Apple’s official statement (via Business Insider):

> Apple is proud of its long history in Ireland and the 4,000 people we employ in Cork. They serve our customers through manufacturing, tech support and other important functions. Our success in Europe and around the world is the result of hard work and innovation by our employees, not any special arrangements with the government. Apple has received no selective treatment from Irish officials over the years. We’re subject to the same tax laws as the countless other companies who do business in Ireland. > > Since the iPhone launched in 2007, our tax payments in Ireland and around the world have increased tenfold. To continue that growth and the benefits it brings to the communities where we work and live, we believe comprehensive corporate tax reform is badly needed.”

Both models have cleared all regulatory hurdles and will be available for pre-order on October 10th and in Chinese Apple Stores on October 17th.

From Apple’s press release:

Apple® today announced that iPhone® 6 and iPhone 6 Plus, the biggest advancements in iPhone history, will be available in China beginning Friday, October 17 from the Apple Online Store (www.apple.com), Apple’s retail stores, and an expansive network of retail stores through all three major carriers and Apple Authorized Resellers. With support for TD-LTE and FDD-LTE, iPhone 6 and iPhone 6 Plus provide customers access to 4G/LTE networks from China Mobile, China Telecom and China Unicom across mainland China. Customers can pre-order iPhone 6 and iPhone 6 Plus from the Apple Online Store beginning Friday, October 10. Beginning Tuesday, October 14, customers can reserve the new iPhones for in-store pick-up starting Friday, October 17.

“We are thrilled to bring iPhone 6 and iPhone 6 Plus to our customers in China on all three carriers at launch,” said Apple’s CEO Tim Cook. “With support for TD-LTE and FDD-LTE, iPhone 6 and iPhone 6 Plus customers will have access to high-speed mobile networks from China Mobile, China Telecom and China Unicom for an incredible experience.”

As to pricing:

iPhone 6 comes in gold, silver or space gray, and is available in China for a suggested retail price of 5,288 (RMB) for the 16GB model, 6,088 (RMB) for the 64GB model and, for the first time, a new 128GB model for 6,888 (RMB). iPhone 6 Plus comes in gold, silver or space gray, and is available in China for a suggested retail price of 6,088 (RMB) for the 16GB model, 6,888 (RMB) for the 64GB model and 7,788 (RMB) for the new 128GB model.

September 29, 2014

In the wake of the uproar that followed last week’s purported iPhone 6 Plus pliability problem, some people have apparently taken it upon themselves to go into Apple Stores and bend iPhones. And while it pains us that this even needs to be said, guys, please: Breaking private property doesn’t prove anything. Except that you’re an asshole.

That sums it up for me.

Music video animation makes its way across multiple iPads and iPhones

This is an incredibly creative video for the song Knock Knock, by Brunettes Shoot Blondes. I would love to know how they made this.