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Perceived Value

Value, like beauty, is in the eye of the beholder – De gustibus non est disputandum [1].

In the field of smartphones this is played out very well in the iPhone vs. Android wars where one side will stick, sometimes fanatically, to the superiority of its platform over the other. (Note: the overwhelming majority of people Continue reading

Apple Pay – Superficial Critiques

I really do not like to get snarky, but sometimes I see blog posts that are so superficial that I cannot help but be a little testy.

Case in point Apple Pay Has Finally Arrived! Great – But Here Are 7 Reasons It Won’t Be A Slam-Dunk Success by Robert Hof, in Forbes.

First – I totally agree with Hof when he writes

it’s apparent that Apple Pay is far from a guaranteed success.

This definitely is true. No one can predict with surety two basic factors:

  1. Will it work properly?
  2. Will the public accept it?

Typically, Apple’s products and services work pretty well, but there have been some notable exceptions. The move from .mac to me.com was a tremendous mess, and the introduction of Maps seriously flawed. Any system failure even vaguely approaching those will be a disaster. This is people’s credit cards and payments, not simply directions to the nearest movie theater.

As for number two, Apple seems to have a really refined system, and if it works as effortlessly as in Apple’s demo, it will certainly be the easiest method of paying yet available. A simple swipe of your iPhone or Apple Watch by the NFC reader while holding the home button (on the iPhone) and you are done.

But none of this is guaranteed. That is the nature of any business, especially one that is creating a whole new product.

But Hof goes on to list seven important areas where Apple Pay is lacking.

1 –You can’t use Apple Pay unless you buy an iPhone 6 or 6 Plus

Continue reading

The Definitive Debunking of Touch ID Fingerprint Hack

When Touch ID was announced at the iPhone 5s launch, it was immediately besieged by detractors.

One area in particular for detractors is that the Touch ID system is susceptible is via spoofing an owner’s fingerprint. If true, this would  pretty much leave the whole system open to an attacker, and now, with the iPhone 6 and Apple Pay, spoofing would easily expose the owner to fraudulent charges placed on the his credit cards.

The most convincing  exposition on this was by the German Chaos Club group which quickly posted online video of how to spoof the Touch ID sensor system.

With the advent of Apple Pay based on Touch ID, this issue becomes even more critical.

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Two facts are clear:

  1. it works,
  2. it is not all that difficult.

However, there is one clarification to point #2. It ought to read:

Continue reading

Understanding Tokens: Digging Deeper

Apple (AAPL) just announced its new iPhone 6 models and the Apple Watch, and what to my mind is the real killer app of mobile space – Apple Pay. This service will truly revolutionize payments in the $13 trillion per year credit/debit card industry.

In an article for Seeking Alpha, I went over the basics of the Tokenization system that is now being used by the industry when possible. I explained how a Point of Service (POS) transaction with a credit card goes through the following steps:

Chip Card

Smartcard

Continue reading

Apple Metal Explained

Pedal to the Metal

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In my post to Seeking Alpha I wrote:

  • The final sleeper feature with deep implications for Apple’s future is Metal.
  • Metal is a new technology for writing graphics programs, particularly animations and games. It allows programmers to write code at a much lower level than previously, and this produces a real, up to 10x performance improvement.

Clearly the newest Apple hardware (iPhone, iPad,a nd possibly Apple TV box) will be getting upgraded processors (system on a chip or SoC), the A8. I wrote in detail on the current A7 in this post, and I also presented my speculations on the A8. While Apple’s creative design keeps them a step ahead in the processor race, because they control both the operating system (iOS) and the processor technology

  • Apple is in a unique position to optimize system graphics performance

 

So what is it that they have done?

Continue reading

Microsoft Surface vs Apple: DATA – Make your own analysis

Microsoft has introduced its new Surface Pro 3 computer, billed as both a tablet and a laptop. Naturally, they promoted it as the greatest thing, both at the announcement event, and on their website.

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There, under the selection Surface Pro 3 vs. MacBook Pro, they do a comparison with the MacBook Pro. For those who think that comparing the Surface Pro 3 to a MBP is stretching things a bit, below is a list of comparison figures for you to contemplate. Meanwhile, others say that SP3 is really targeting the MacBook Air ( amore reasonable comparison in my view. At Seeking Alpha, Quoth the Raven has a reasonable analysis, although I think he should to examine the real comparison data here.

[click to enlarge]

Screen Shot 2014-05-23 at 7.48.06 AM  Notes:

  1. Processor – I am asserting that Apple’s A7 64-bit SoC is roughly equivalent to the Core i3 in the low end surface. Geekbench data below more or less corroborate that, and the Anand tech graphics data indicates the A7 may have a significant edge.
  2. Graphics Processors (GPUs) are built into the Intel chips. Microsoft did not provide detailed specs with its news release, so real comparisons are impossible to make. Just learned the i5 model is the i5-4300U model with HD 4400 GPU running at 2.5Gz. this is similar to the previous model, so I do not expect the benchmarks to increase significantly.
  3. Prices are rounded up $1 or less to nearest multiple of 10.
  4. Keyboard for the Surface 3 costs $130. A similar keyboard, Logitech Ultrathin Bluetooth for iPad Air costs $70 on Amazon. (Weight = 330 g)
  5. Memory – On the MacBooks, I have included both RAM and SSD (RAM based drive) sizes. On most configurations listed, the RAM can be increased as a build to order option.
  6. Weight – I list here the weight both alone and with the keyboard

Unfortunately there is no way of making an objective comparison Continue reading

New York Times on Apple Job Growth

The New York Times has published a rather silly article in which they claim that Apple has never contributed any jobs to the economy.

Well – they do not put it exactly that way – but their article practically says it outright.

I will agree with the quote:

… said Gary P. Pisano, a professor of business administration at Harvard Business School. “It’s hard to say the exact size.”

I agree as well that the methods used by the company they hired could be the subject of legitimate debate (as long as that statement is NOT interpreted as an innuendo that someone was dishonest.)

However, the following quote is a bit odd:

David Autor, an economics professor at the Massachusetts Institute of Technology, said via e-mail that the “entire business of claiming ‘direct and indirect’ job creation is disreputable” because most of the workers Apple is taking credit for would have been employed elsewhere in the company’s absence.

They go on to note:

Mr. Cappelli said. “If you say, ‘If there had been no Apple, those people would not have jobs,’ that’s not true.”

Of course it is not true that every single one of those individuals would be jobless, but if there were no Apple and engineer X took a job at HP then there would be some other engineer who would not have a job.

According to the logic provided, then no business anywhere creates any jobs at all. Everybody else would have been working somewhere else. This is – of course – utter foolishness.

I will admit that they do conclude with the statement:

Apple is, however, an innovative company that created a market for tablets and radically increased demand for smartphones.

In reality – the smartphones existing before the iPhone are not today considered smartphone. Additionally, the app business was relatively nonexistent prior to the iPhone, so perhaps they should be credited with ALL the apps developers (snicker).

As for people buying alternative products if Apple did not exist… sure they would be buying Asus and Lenovo computer that are totally designed, engineered, and built in China in factories with absolutely NO oversight at all. And…

They would be running DOS 12.1. (What a pleasant thought.)

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