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Government

How Apple Sidesteps Billions In Global Taxes 599

An anonymous reader writes "An article at the NY Times explains the how the most profitable tech company in the world becomes even more profitable by finding ways to avoid or minimize taxes. Quoting: 'Apple's headquarters are in Cupertino, Calif. By putting an office in Reno, just 200 miles away, to collect and invest the company's profits, Apple sidesteps state income taxes on some of those gains. California's corporate tax rate is 8.84 percent. Nevada's? Zero. ... As it has in Nevada, Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world. ... Without such tactics, Apple's federal tax bill in the United States most likely would have been $2.4 billion higher last year, according to a recent study (PDF) by a former Treasury Department economist, Martin A. Sullivan. As it stands, the company paid cash taxes of $3.3 billion around the world on its reported profits of $34.2 billion last year, a tax rate of 9.8 percent."
Cellphones

Samsung Passes Nokia As Biggest Handset Manufacturer 133

rtfa-troll writes "Tomi Ahonen reports that Samsung has become the largest manufacturer of smartphones (overtaking Apple) and of mobile phones (overtaking Nokia). During the first quarter of 2012 Samsung sold 93.5 million phones, with 44.5 million (48%) of those being smartphones. Apple would still lead on 'smart mobile devices' with 52 million sales including iPads, but not iPods. The last time the lead in mobile phone sales changed was in 14 years ago, in 1998, when Nokia overtook Ericsson. Ericsson never recovered and began leaving the mobile phone market three years later, creating Sony Ericsson, later Sony Mobile. It looks like the mobile phone market is going to be brutal, with Apple and Samsung crushing everybody else except possibly HTC, which is still rising, and Motorola (which has Google to look after it)."
Transportation

Why Apple's Next Revolution Should Be In Your Car 293

New submitter eetc writes "This article surveys the sorry state of car makers' stereo and navigation systems: 'It's clear that most of the auto companies that offer more than a car stereo want to lock you into their interface and services — as awful as they are. The rest don't care. The aftermarket stereo and nav systems are no better. Stuffed with even more buttons and light-show gewgaws, they're sure to keep your eyes off the road and may not work easily with your stuff. Add to that mix the split focus of also having to use a separate GPS unit in most vehicles, and you have to wonder what keeps our roads so relatively safe.' The answer in one word: iCar. This is just the sort of broken market that Apple specializes in taking over."
Security

Apple Planning To Build Private Restaurant 234

First time accepted submitter a90Tj2P7 writes "Apple is building a 21,468 square foot private restaurant in Cupertino so employees can talk shop over lunch without being overheard. Apple's director of real estate facilities, Dan Wisenhunt, stated that: 'We like to provide a level of security so that people and employees can feel comfortable talking about their business, their research and whatever project they're engineering without fear of competition sort of overhearing their conversations.'"
Advertising

Steve Jobs' Idea For an Ad-Supported OS 255

milbournosphere writes "It looks like Steve drew up an idea for an ad-supported OS. A patent was filed back in 2009 detailing how it was done. From the article: 'Rather than charge the normal upgrade price, which in those days was $99, he was thinking of shipping a second version of Mac OS 9 that would be given away for free — but would be supported instead by advertising. The theory was that this would pull in a ton of people who didn't normally upgrade because of the price, but Apple would still generate income through the advertising. And any time an owner of the free version wanted to get rid of the advertising, he or she could simply pay for the ad-free version. Steve's team had worked out the preliminary numbers the concept seemed financially sound.'"
Google

Is Siri Smarter Than Google? 366

storagedude writes "Google could go the way of the dodo if ultra intelligent electronic agents (UIEA) make their way into the mainstream, according to technology prognosticator Daniel Burrus. Siri is just the first example of how a UIEA could end search as we know it. By leveraging the cloud and supercomputing capabilities, Siri uses natural language search to circumvent the entire Google process. If Burrus is right, we'll no longer have to wade through '30,000,000 returns in .0013 milliseconds' of irrelevant search results."
Apple

Tim Cook Prefers Settling To Suing and Has a Huge Quarter 246

An anonymous reader writes "Apple's current legal battles with Samsung encapsulate a large number of patents, innumerable suits and counter-suits, and have resulted in legal motions in 11 jurisdictions across the globe. As you may remember, Steve Jobs in his biography was quite vocal about his intent to go thermonuclear on Android, vowing to spend every last dime in Apple's coffers to destroy Google's mobile OS. But Tim Cook is a bit more level headed about things, expressing during Apple's earnings conference call yesterday that he has has always hated litigation and would much rather settle than to battle in court. The caveat, of course, is that Cook doesn't want Apple to 'become the developer for the world.'" It may not be what Jobs would do, but as zacharye notes, it doesn't seem to be hurting earnings. "Despite early-morning jitters on Wall Street, Apple on Tuesday reported yet another blow-out quarter. The Cupertino, California-based company managed the second most profitable quarter in its history, posting a net profit of $11.6 billion on $39.2 billion in sales. Apple sold 35.1 million iPhones into channels last quarter, along with 11.8 million iPads, 7.7 million iPods and 4 million Mac computers. While the firm continues to dominate the technology industry — Apple is currently the most valuable company in the world — several analysts think Apple is just getting started."
Patents

Motorola Scores Patent Wins Over Microsoft, Apple 158

tlhIngan writes "This week is Motorola's lucky week; they've won twice in two separate patent suits. First, an ITC judge has ruled that Microsoft's Xbox 360 has violated 4 of 5 patents related to h.264. This is just a preliminary ruling (PDF) and both Microsoft and Motorola will face an ITC panel later this year. In the other case, the ITC judge has ruled Apple violates a 3G patent, one that a German court ruled that Apple didn't violate earlier this year. "
Security

One In Five Macs Holds Malware — For Windows 285

judgecorp writes "One in five Apple Macs is infected with malware, according to Sophos. But most of that is harmless to the Mac... it is Windows malware ready to be transmitted to the Windows population. Only one in 36 Macs has OS X specific infections."
Patents

Patent Suit Targets Every Touch-based Apple Product 141

suraj.sun writes with news that a new patent suit has been filed against Apple over all of the company's touch-based products. From the article: "According to the complaint (PDF), Professor Slavoljub Milekic conceived a system that used a touchscreen that allowed children to move virtual objects around the screen, which he used to build interactive displays for the Speed Art Museum in Louisville, KY, in 1997, and filed for a patent on his design that same year. The patent in the suit, U.S. Patent #6,920,619 named 'User interface for removing an object from a display,' was issued by the U.S. Patent & Trademark Office in 2005. According to the lawsuit, Milekic formed FlatWorld Interactives in 2007 to 'promote and commercialize' his invention. Curiously, FlatWorld was incorporated on January 2007, just weeks after Apple announced the original iPhone at Macworld Expo. In July 2007, just after Apple shipped the original iPhone, FlatWorld filed a reissue request for the patent, which appears to have been done in order to modify some of the patent's dependent claims."
Desktops (Apple)

Mac Flashback Attack Began With Wordpress Blogs 103

With more on the Flashback malware plaguing many Macs, beaverdownunder writes with some explanation of how the infection grew so quickly: "Alexander Gostev, head of the global research and analysis team at Kaspersky, says that 'tens of thousands of sites powered by WordPress were compromised. How this happened is unclear. The main theories are that bloggers were using a vulnerable version of WordPress or they had installed the ToolsPack plug-in.'"
Google

Apple and Google Face Salary-Fixing Lawsuit 402

beaverdownunder writes "Google, Apple, Adobe and Intel have been accused of maintaining an agreement not to poach each other's staff, thus restricting increases in salary and restricting career development. California District Judge Lucy Koh has found that the plaintiffs have adequately demonstrated antitrust injury. Sparked by a request from the late Steve Jobs, from 2005 to 2007 the defendants had a 'no cold-call' policy of staff recruitment amongst themselves. Jobs is also alleged to have threatened Palm with litigation for not entering into a 'no cold-call' agreement with Apple." Besides the companies named above, Intuit, Pixar, and Lucasfilm are also involved.
Android

Accountability, Not Code Quality, Makes iOS Safer Than Android 210

chicksdaddy writes "Threatpost is reporting on a new study of mobile malware that finds accountability, not superior technology, has kept Apple's iOS ecosystem free of viruses, even as the competing Android platform strains under the weight of repeated malicious code outbreaks. Dan Guido of the firm Trail of Bits and Michael Arpaia of iSEC Partners told attendees at the SOURCE Boston Conference on Thursday about an empirical analysis of existing malicious programs for the Android and iOS platforms which shows that Google is losing the mobile security contest badly — every piece of malicious code the two identified was for the company's Android OS, while Apple's iOS remained free of malware, despite owning 30% of the mobile smartphone market in the U.S. Apple's special sauce? Policies that demand accountability from iOS developers, and stricter controls on what applications can do once they are installed on Apple devices."
Security

A Week After Apple's Fix, Flashback Still Infects Half a Million Macs 161

Sparrowvsrevolution writes "Security firm Dr. Web released new statistics Friday showing that the process of eliminating Flashback from Macs is proceeding far slower than expected: On Friday the security firm, which first spotted the Mac botnet earlier this month, released new data showing that 610,000 active infected machines were counted Wednesday and 566,000 were counted Thursday. That's a slim decrease from the peak of 650,000 to 700,000 machines infected with the malware when Apple released its cleanup tool for the trojan late last week. Earlier in the week, Symantec reported that only 140,000 machines remained infected, but admitted Friday that an error in its measurement caused it to underestimate the remaining infections, and it now agrees with Dr. Web's much more pessimistic numbers."
Security

Game Theory, Antivirus Improvements Explain Rise In Mac Malware 319

Sparrowvsrevolution writes "Four years ago, security researcher Adam J. O'Donnell used game theory to predict in a paper for IEEE Security and Privacy when malware authors would start targeting Macs. Based on some rough assumptions and a little algebra, he found that it would only become profitable to target Apple's population of users when they reached 16% market share. So why are we now seeing mass attacks on Macs like the Flashback trojan when Apple only has 11% market share? O'Donnell says it turns out he may have underestimated the effectiveness of the antivirus used by most Windows users, which now makes overconfident Mac users a relatively vulnerable and much more appealing target. Based on current antivirus detection rates, O'Donnell's equations now show that victimizing Macs becomes a profitable alternative to PCs at just 6.5% market share."
Cellphones

Federal Court Allows Class-Action Suit Against Apple Over In-App Purchases 279

suraj.sun writes "An iPhone-owner whose daughter downloaded $200 worth of 'Zombie Toxin' and 'Gems' through in-app purchases on his iPhone has been allowed to pursue a class action suit against Apple for compensation of up to $5m. Garen Meguerian of Pennsylvania launched the class-action case against Apple in April 2011 after he discovered that his nine-year-old daughter had been draining his credit card account through in-app purchases on 'free' games including Zombie Cafe and Treasure Story. This month, Judge Edward J Davila in San Jose District Federal Court has allowed the case to go to trial, rejecting Apple's claim that the case should be dismissed. Meguerian claimed that Apple was unfairly targeting children by allowing games geared at kids to push them to make purchases. He describes games that are free to play but require purchases of virtual goods to progress as 'bait apps' and says they should not be aimed at children."
Earth

Apple: Greenpeace's Cloud Critique Driven By Bogus Numbers 188

miller60 writes "Apple says Greenpeace has wildly overestimated the amount of power it uses in its data center in North Carolina, and used that bad math to give the company a low grade on sustainability. Apple says it uses 20 megawatts of power at its iDataCenter, a fraction of Greenpeace's estimate of 100 megawatts in a new report on energy use by cloud computing providers. Apple says that its huge solar array and biogas-powered fuel cell will supply 60 percent of the facility's power, not the 10 percent claimed by Greenpeace."
Portables (Apple)

Macbook Owner With Defective GPU Beats Apple In Court 280

New submitter RockoW writes "A few years ago, Apple sold defective computers of the MacBook Pro line. They had the defective Nvidia 8600M GT GPU. In this case Apple refused to take the computer back and issue me a refund. Instead, they promised to replace the 8600M GT boards when they failed, up to four years from the date of purchase. Three years later, the MacBook Pro failed and they refused to replace it. This guy took them to the court and won by their own means."
Patents

Apple and Samsung Agree To Settlement Talks 97

tlhIngan writes "It looks like the Apple v. Samsung war might be over soon. Both parties have agreed to meet to attempt to reach a settlement. While they are not required to settle (Google and Oracle recently went through the same process), it could be a positive signal that Apple might be willing to license the patents under Tim Cook, versus fight it out in court under the late Steve Jobs."
Apple

iTunes' Windows Problem 332

Hugh Pickens writes "Jean-Louis Gassée writes that iTunes is the best thing that has happened to Apple because without iTunes' innovative micropayment system and its new way of selling songs one at a time, the iPod would have been just another commodity MP3 player. The well-debugged iTunes infrastructure turned out to be a godsend for the emergence of the iPhone. But today, the toxic waste of success cripples iTunes: increasingly non-sensical complexity, inconsistencies, layers of patches over layers of patches ending up in a structure so labyrinthine no individual can internalize it any longer. 'It's a giant kitchen sink piled high with loosely related features, and it's highly un-Apple-like' says Allen Pike. 'Users know it, critics know it, and you can bet the iTunes team knows it. But for the love of god, why?' People naturally suggest splitting iTunes into multiple apps, but Apple can't, because many, if not most iOS users are on Windows. It's Apple's one and only foothold on Windows, so it needs to support everything an iOS device owner could need to do with their device. 'Can you imagine the support hurricane it would cause if Windows users suddenly needed to download, install, and use 3-4 different apps to sync and manage their media on their iPhone?' But help may be on the way with iOS 5. As iCloud duplicates more and more of iTunes' sync functionality, they can start removing it from iTunes. 'Apple is very explicit about it in their marketing materials: they call it "PC Free". They're not quite there yet, but they're driving towards a future where you don't need to manage your iOS device with a PC at all – Mac or Windows.'"

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