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Monday, May 6, 2013

After Bumpy Start, Microsoft Rethinks Windows 8

REDMOND, Wash. â€" Windows Blue, the code name for an update to the Microsoft’s flagship operating system, sums up the current melancholy in the PC business pretty well, though Microsoft didn’t intend it that way.

PC shipments are slumping and the declines in the industry have gotten worse, not better, since a major overhaul of Microsoft’s operating system, Windows 8, came out last fall. If it were possible for PCs to sing, there’s little doubt they would be singing the blues.

Microsoft’s basic vision for Windows 8 has not changed â€" an operating system flexible enough to run on traditional PCs, tablets and everything in between â€" but the company is for the first time confirming that it is making changes to the software to address some of the problems people have when using it. In a recent interview at Microsoft’s headquarters, Tami Reller, the chief marketing officer and chief financial officer of the Windows division, revealed that Windows Blue will be released this calendar year and will include modifications that make the software easier to learn, especially for people running it on computers without touch screens.

“The learning curve is real and needs to be addressed,” Ms. Reller said.

Ms. Reller wouldn’t get into the specifics of how Microsoft plans to do that, saying the company will reveal further details over the next several weeks in the lead-up to Build, a Microsoft developer conference in San Francisco. But she dropped some hints.

Two of the biggest changes Microsoft made with Windows 8 was the new tile-based interface of the software and the removal of the start menu for launching programs, a feature of the operating system for almost two decades. In recent weeks, tech news sites have been reporting that Windows Blue will bring back the start menu.

Even more significantly, according to these reports, Microsoft will allow Windows users to configure their systems so they start on the traditional-looking Windows desktop when they start their systems. Microsoft didn’t allow that initially, steering all users to the new tile interface, which is best suited for people running systems with touch screens.

Ms. Reller wouldn’t confirm those changes, but she said Microsoft had changed how it was training sales associates in retail stores as they present Windows 8 to customers so that they emphasize how important the desktop remains as a part of the software. “We started talking about the desktop as an app,” she said. “But in reality, for PC buyers, the desktop is important.”

Ms. Reller said Microsoft’s own research on Windows 8 usage patterns showed that customer satisfaction with the system was on par with that of Windows 7, when the Windows 8 users being analyzed have tablets or other systems equipped with touch screens. Of people with conventional PCs, operated by keyboard and mice or trackpads, Ms. Reller said, “We need to help them learn faster.”

In another development, Ms. Reller said Microsoft was allowing its hardware partners to make Windows 8 tablets with screen sizes in the range of seven to eight inches, smaller than the nine-inch-plus tablets that have been available so far. That could give Microsoft a stronger answer to the iPad mini, which has been a strong seller for Apple.

Ms. Reller described Windows Blue several times as an “update” to Windows 8, though she wouldn’t say whether the software would be available free to people who have already bought Windows 8 computers. The company has already issued hundreds of smaller updates to Windows 8 that are automatically downloaded to users’ computers.

Ms. Reller said Microsoft had sold about 100 million licenses for Windows 8 since the software was introduced, roughly in line with the number of Windows 7 licenses sold in the comparable amount of time after its introduction. While research firms like IDC are showing double-digit declines in PC shipments, Ms. Reller said those figures reflected sales into retail channels, not to actual customers. She said Microsoft was seeing consistent growth in PCs going through the online activation process that everyone with a new PC has to do.

“New PCs coming online is far steadier than what you see from IDC,” she said. “That’s encouraging to us.”

Still, Ms. Reller said the 100 million figure was less than it could have been had there been more touch-based Windows 8 systems available when the product was introduced before the holidays last year. Supplies of Windows 8 touch systems were limited in retail stores, especially outside the United States, in large part because of production delays for a new Intel processor. Ms. Reller said that supply problem should be remedied in the coming months.

“For back-to-school and holiday, we’ll be very pleased,” she said.



Missing for Years, Three Women Are Found in Cleveland


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Recording of Amanda Berry’s 911 call

“Help me, I’m Amanda Berry,” the woman said to a 911 operator. “I’ve been kidnapped and been missing for 10 years. I am here. I’m free now.”

The frantic call to police, made by Ms. Berry on Monday afternoon, was the first almost anyone had heard from her since she disappeared over a decade ago.

The call sent police racing to a home in a residential neighborhood of Cleveland where they discovered two other young women who had also been missing for nearly 10 years. Three brothers, ages 50, 52, and 54, were arrested, a police spokesman said in a televised news conference.

Though many questions remain about what occurred over the last decade, one thing was clear: three young women, who seemed to have disappeared forever, had been found.

As the New York Times reported, Ms. Berry and Ms. DeJesus were in their teens when they disappeared almost exactly a year apart, Ms. Berry in April 2003 and Ms. DeJesus in 2004. Michelle Knight was 20 when she went missing in 2000.

The news that they were found stunned and elated family and friends, some of whom said they had never given up hope of seeing their loved one’s again.

A slide show of photos compiled by the Cleveland Plain Dealer, shows the anguish of friends and family members as they struggled with the women’s loss over the years.

Police released no details about how the women were found. A neighbor, Charles Ramsey told numerous media outlets that he was drawn to his neighbor’s house after hearing a woman’s screams.

Charles Ramsey describes hearing a woman’s screams coming from a neighbor’s house.

As the news spread, neighbors gathered near the house where the women were found. They broke into applause as a convoy of emergency workers whisked the women away.



Victims in Boston Marathon Bombings Turn to Crowdfunding for Support

The GiveForward fundraising page for Brittany Loring, 29, who was seriously injured in the bombings at the Boston Marathon. The GiveForward fundraising page for Brittany Loring, 29, who was seriously injured in the bombings at the Boston Marathon.

It was Brittany Loring’s 29th birthday. She and a fellow graduate student at Boston College, Liza Cherney, were making their way to the finish line of the Boston Marathon to meet a runner when the two bombs exploded.

“I fell to the ground,” Ms. Loring recalled in an interview on Monday. “My thought was I had to get out of there. The moment I could stand up, I ran around the corner, onto Exeter. Then I saw myself in the reflection of a store window. I noticed I was bleeding and that I needed help.”

Ms. Loring and Ms. Cherney, both seriously injured, were separated in the chaos. Ms. Loring was rushed to Boston Medical Center in critical condition, with her skull fractured, her left leg torn open and BB pellets embedded in her head and neck. Ms. Cherney was taken to Beth Israel Deaconess Medical Center and is recovering from her wounds.

They are among the more than 250 people wounded in the April 15 explosions whose family and friends have turned to crowdfunding to help them cover the out-of-pocket medical expenses resulting from the attack. Three people, Krystle Campbell, 29, Martin Richard, 8, died in the blasts.

On Monday night, Kenneth R. Feinberg held a town hall meeting for victims and their families, starting the process of divvying up the $28 million raised by One Fund Boston, which was created after the bombings.

But Mr. Feinberg, who oversaw the compensation fund for 9/11 victims, has emphasized that $28 million is not nearly enough to cover the daunting medical costs for many of the victims, as our colleague Abby Goodnough has reported.

To help close the gap, friends and families of some of the victims, including Ms. Loring and Ms. Cherney, are using social media and online charitable giving platforms as tools for both emotional and financial support.

On GiveForward, a Chicago-based start-up that helps people create personalized online pages to raise money for out-of-pocket medical expenses, more than $90,000 has been donated to Ms. Loring, and more than $50,000 to Ms. Cherney.

Ms. Loring said that the words of encouragement that accompanied the donations, from people she has known over the years and strangers from all over the world, had helped her get through the last few weeks.

“My family would read the postings to me every night,” said Ms. Loring, who was discharged from the hospital last week and is now at home in Cambridge, Mass., undergoing therapy as she looks ahead to her graduation this month with a dual degree from Boston College’s law and business schools and a wedding in the fall. “I was so surprised by how many people are reaching out. There are people I’ve never met before. It definitely helps keep things positive, which helps with my recovery.”

More than $1.2 million has been raised for the families of about two dozen victims on GiveForward, which collects the donations through credit and debit cards and passes them on to the beneficiaries after deducting 7 percent for processing fees.

Of that $1.2 million, more than $700,000 was raised for a young couple, Patrick Downes and Jessica Kensky, who were both seriously wounded and ended up in different hospitals.

These pages have become vehicles for Ms. Loring and others to express their gratitude to the people who helped them in the crucial moments after the blasts, and to remember those who were lost that day.

Last week, Brittany Loring met with three men who came to her immediate assistance following the Boston Marathon bombing attack on April 15. Last week, Brittany Loring met with three men who came to her immediate assistance following the Boston Marathon bombing attack on April 15.
Brittany Loring met the young woman who came to her aid following the Boston Marathon attack. Brittany Loring met the young woman who came to her aid following the Boston Marathon attack.

Some of the Web sites, and accompanying Facebook and Twitter accounts, offer a window into the lives and challenges that lie ahead for many of the victims.

On a GoFundMe page for Ron, Karen and Krystara Brassard, the family has posted regular updates and photos. There are photos of the victims at the race before the explosions, followed by the horrifying images from immediately afterward, and then pictures of them on the road to recovery.

The Brassad family is documenting their recovery following the Boston Marathon attack on the GoFundMe platform, raising nearly $30,000 in donations. The Brassad family is documenting their recovery following the Boston Marathon attack on the GoFundMe platform, raising nearly $30,000 in donations.

Other sites, including a fund-raising page for the family of Martin Richard, the 8-year-old boy who died in the bombings, show family members holding on to one another. Martin’s mother and sister were also seriously injured.

One of the most iconic images in the aftermath of the attacks was of Jeff Bauman, 27, a spectator, whose ashen face and bloodied legs were captured in a dramatic photograph as he was being wheeled from the scene.

As of Monday, an online fund-raiser titled “Bucks for Bauman” had brought in more than $745,000 in 19 days from more than 16,000 people.

The campaign was set up by Brooke Gibbs, who identifies herself as a longtime friend of the Baumans and whose brother, John, grew up with Jeff.

As most of you know, due to the horrific event that had taken place at the Boston Marathon this year, Jeff was severely injured. Throughout this difficult time we want to help in every which way we possibly can to get Bauman back on track as soon as possible. Medical bills are going to start rolling in, let’s get a head start on helping out Bauman and his family! Every dollar counts!!

Adrianne Haslet-Davis, a dance instructor, and her husband, Adam Davis, were also severely injured in the bombing. They had gone to watch the marathon together; Mr. Davis, an Air Force captain, had just returned from a tour of duty in Afghanistan, and Ms. Haslet-Davis had a day off from teaching at the Arthur Murray Dance Studio in Boston. Captain Davis sustained broken bones and lacerations, and Ms. Haslet-Davis lost her left foot in the blast.

Ms. Haslet-Davis, 32, from Issaquah, Wash., has vowed to dance again, according to local news reports.

To support her efforts, her co-workers at the dance studio started a fund-raising campaign on GoFundMe.com , which is more than halfway to its $400,000 target.

In another case, Celeste Corcoran lost both legs below the knee. Her daughter, Sydney, was severely injured from shrapnel. Fund-raising efforts on their behalf have brought in more than $720,000 toward a $1 million goal.

The Corcorans’ Facebook page shares triumphs of their recovery with their friends, family and online supporters. In photos posted, they are seen in rehabilitation class, walking with crutches or cuddling with the family dog at home. The page also featured a video tribute for Sydney’s 18th birthday on April 23.


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A video tribute for Sydney Corcoran’s 18th birthday in April.

Celeste Corcoran, 47, was cheering on her sister, Carmen Accabo, when the blast hit, she said in an interview with NPR. Sydney was nearby, but neither knew that the other was injured. They awoke side by side in hospital beds at Boston Medical Center.

Nicole Gross, her brother Michael and their sister, Erika Brannock, were at the finish line of the marathon to cheer for their mother, who had trained for months to run in the event. They, too, were athletes, and knew how much their support would mean to her, according to their fund-raising Web site. The explosions went off as they searched the crowd for her.

A local news report showed Ms. Gross, a former University of Tennessee swimmer, on the sidewalk surrounded by other victims, her legs bloodied from a compound fracture.

Then there is the White family: William and Mary Jo White and their son Kevin were seriously injured. Fund-raising for them is taking place through Lawrence Academy, the alma mater of Kevin and another son, Andrew.

For the family of Mr. Downes and Ms. Kensky, the newlywed couple who each lost a leg in the blast, the page has also become a place to give thanks.

In a statement, their parents â€" Katy and Herman Kensky and Deborah and Brian Downes â€" described the strong bond the couple had forged in an interfaith marriage of Judaism and Christianity, with roots that spanned the country: the Downes family is from Massachusetts and the Kensky family from Sacramento. Friends who set up their fund-raising page said the couple tarted dating in 2006.

Our children have asked us to extend their heartfelt condolences to the families of Krystle Campbell, Lingzi Lu, Martin Richard, Sean Collier, and to all those who suffered because of this horrible event. Just as our families have been buoyed by the goodwill of friends and strangers, we know too that this generosity of spirit and resources has been extended to others. We hope all the families hurt by this tragedy will join together in support of one another.

The Kensky and Downes families want to echo the many tributes offered to the first responders and the medical and law enforcement communities. The staffs at Boston Medical Center and Beth Israel Deaconess Medical Center have expertly and compassionately cared for our children; we cannot heap enough praise on the doctors, nurses, aides and others who work in these fine hospitals.

We have been touched by so many good people.



Social Media Images of Protesters in Moscow

As our colleague Andrew Kramer reports, organizers said about 26,000 protesters rallied in Moscow’s Bolotnaya Square on Monday, on the first anniversary of a protest in the same location that was marred by violence and followed by mass arrests and a police crackdown.

As ever, the protest was extensively documented by the protesters themselves, who, along with journalists, posted images on social networks of the crowd passing slowly through metal detectors at the edge of the square and then filling the space in front of a flatbed truck that served as an improvised stage.

Speakers at the rally called for dozens of protesters charged with disturbing the peace at last year’s demonstration to be cleared. One of those detained last year, Maria Baronova, who was indicted based on a YouTube video of her encouraging protesters, posed for a photograph near the stage on Monday and sang along to a protest tune at the end of the rally.

The protesters were addressed by leading figures in the opposition, including the anti-corruption blogger Aleksei Navalny, who finished a defiant speech by leading the crowd in the chant “Russia Will Be Free!”

Video of Aleksei Navalny, a leader of Russia’s protest movement, addressing a rally on Monday evening in Moscow. (The Interpreter, a Web site sponsored by the Institute of Modern Russia, made an English translation of his complete remarks available online.)

According to a partial translation of his remarks from Radio Free Europe/Radio Liberty, the American-financed broadcaster, Mr. Navalny made light of what he has called trumped-up charges filed against him for corruption, saying:

One year ago when I was here at the rally, there were zero criminal cases against me. At a rally on September 15, there was one criminal case against me. At a rally on December 15, there were four criminal cases against me. Now there are either four or six criminal cases against me. I lost count myself. And I don’t give a damn! There may be 124 criminal cases and I will go on saying what I want and I will speak my mind. And I think that you do not want to hear anything from me but truth.

Julia Ioffe, a former Moscow correspondent for The New Yorker, who wrote a profile of Mr. Navalny in 2010, noted that he also said, “I don’t have another country or another family or another people except you.”

Another opposition leader, Ilya Yashin, pointed out that one of the demonstrators proudly wearing a button with the slogan “The Case Against Navalny Is the Case Against Me!” was the activist’s brother. In his case, the words were more than just metaphorical, since he has been named as a co-defendant in one of the cases filed against his brother.

A Russian-language video report on the rally from the independent newspaper Novaya Gazeta, showed the buttons being handed out at the rally location, where posters dedicated to protesters detained last year were also erected.

Robert Mackey also remixes the news on Twitter @robertmackey.

Ilya Mouzykantskii is a freelance journalist and a New York Times intern in Moscow. Follow him on Twitter @ilyamuz.



Intel’s Impressive Design Meets a Tricky Market

Intel formally introduced on Monday a new semiconductor architecture for its Atom chip, with all sorts of advanced features and technology that the company says will give it an edge in the operation of computer servers, lightweight personal computers, tablets, phones, cars and perhaps a whole lot of other things.

There was another issue, however, that Intel failed to discuss: this complexity of a marketplace with many different products and outlets, and faster-changing consumer tastes. It’s an open question how well the company, the world’s largest semiconductor maker, will fare in this environment.

For now, at least, Intel gets big points for mastering the complexities of silicon. The new architecture, Silvermont, uses wires just 22 nanometers across, or one four-thousandth the width of a human hair. Intel claims Silvermont can get three times the performance on one-fifth the power.

“Every few years we have a key re-architecture,” said David Perlmutter, Intel’s chief product officer, who is known as Dadi. “You’ll see based on Silvermont a large variety of products.”

The architecture, which was talked about as far back as last January’s Consumer Electronics Show, is aimed at a chip called Bay Trail, for mobile devices like tablets; a Merrifield chip, for phones; Avaton, a supposedly more energy-efficient way of powering micro-servers; and Rangely, for network and communication infrastructure. An as-yet-unnamed variety of chip will be aimed at things like in-car videos.

Each of these versions comes with features like encryption, media support and security. In effect, each chip performs many of the functions that used to be associated with other aspects of computing, a so-called system on a chip approach that saves space, but adds complexity.

“Everything is a system on a chip, as far as we’re concerned,” Mr. Perlmutter said.

Another 22-nanometer architecture, called Haswell, is aimed at PCs, hybrid tablet notebooks and other mobile devices. The Xeon chip, aimed at big computers in a data center, will also take on 22-nanometer technology. As if that weren’t enough, executives at a briefing for the introduction talked about uses of the Itanium chip and Xeon Phi, for data centers and high-performance computing.

A year from now Intel plans to produce a whole new version for 14-nanometer wires, called Airmont.

The company is clearly building for a faster-moving world of all kinds of computing outlets, attached to big clouds of various designs. This is a big departure from the PC/server dynamic around which Intel thrived for the last two decades. It would seem to carry higher costs, for everything from production to sales training. But Mr. Perlmutter said he did not think this was a big deal.

“The go to market is going to be different on each of these products,” he said, adding, “This isn’t going to be something that will affect our cost of operations. We know how to do this efficiently.”

If so, that will be an operational wonder to match anything Intel can make in its foundries. It’s critical, too: without high levels of profitability, Intel can’t keep building those high-end chip factories.



No Joke: Syrians Hack The Onion

On Monday, The Onion, a news parody site, became the latest publication to have its Twitter account hacked by the Syrian Electronic Army.

The group, which supports Syria’s embattled president, Bashar Al-Assad, posted several anti-Israel messages to The Onion’s nearly 5 million Twitter followers. Another message read, “UN retracts report of Syrian chemical weapon use: Lab tests confirm it is Jihadi body odor.”

A member of the Syrian Electronic Army who goes by the hacker handle “Th3 Pr0” told The New York Times that the group aimed at The Onion because of a recent Onion parody post, purportedly written by Syrian President Bashar Al-Assad, titled: “Hi, In The Past 2 Years, You Have Allowed Me To Kill 70,000 People.”

“The Onion is a satire news organization and quite often is more trusted to reflect the news than the corporate media is known to,” Th3 Pr0 wrote in an e-mail. “Recently they have published an article that savages Syria and its current circumstances. This hurt the feelings of many Syrians who relied on it to tell the truth in a funny way. We hoped that our effort to correct their news would draw attention to the fact that it was likely that an outside decision was involved in changing The Onion’s tune.”

“We hope people take it in good humor and understand our people’s suffering,” he added. “The Onion can do a much better job reporting the truth through its satire. Unfortunately even they seem to be biased.”

The Syrian Electronic Army started targeting Syrian opposition groups during the beginning of the Syrian uprisings in 2011 and have since turned their attention to media outlets, hacking their Twitter accounts in retaliation for what they call the media’s one-sided coverage of the Syrian civil war. In recent weeks, Human Rights Watch, NPR, CBS, the Associated Press, E! Online and the Guardian were all hacked by the group.

The group uses multiple tactics in its attacks, but according to security researchers who have investigated the break-ins, the hackers send employees at each organization an e-mail with a link that redirects them to a fake Gmail or Microsoft Outlook log-in page, where they are asked to enter in their username and password. The hackers then use those passwords, to break into e-mail in-boxes, where they can search for the password to a Twitter account or reset the site’s Twitter password themselves.

In the case of the Associated Press, the hackers sent a link disguised as a Washington Post article. S.E.A. hackers claim that more than 50 A.P. employees fell for the hoax, including several of the A.P.’s social media editors.

To prove that the S.E.A. was behind the recent Associated Press Twitter hack, Th3 Pr0 sent a screenshot he took while he was resetting the AP’s Twitter password. Security researchers confirmed that the group was responsible.

The S.E.A.’s A.P. attack, in which it used the A.P. account to post a fake message about explosions at the White House, sent the stock market nose-diving before the hoax was discovered.

The group is now emboldened by that success. “We have a strategy and we are working on it very successfully,” Th3 Pr0 wrote via e-mail. “It’s just the beginning.”

Meanwhile, The Onion deleted the fake posts to its Twitter account and posted a new satirical article on the experience titled: “Onion Twitter Password Changed To OnionMan77: ‘That Ought To Do It,’ Company Sources Confirm.”



India Ink: New American Bill Threatens Indian Outsourcing Companies

A new American immigration bill threatens the future of Indian outsourcing, Indian companies say, because it will limit the number of foreign workers they can bring to the United States.

India Ink: New American Bill Threatens Indian Outsourcing Companies

A new American immigration bill threatens the future of Indian outsourcing, Indian companies say, because it will limit the number of foreign workers they can bring to the United States.

Samsung Could Soon Surpass Apple in Handset Profit

Apple and Samsung Electronics are sucking up every penny of profit in the handset business. But Samsung’s mobile business is growing fast, and the question is: Could it surpass Apple in profit next quarter?

Analysts at Canaccord Genuity, an investment research firm, think so, according to a new report. The report, issued on Monday, said that in the first quarter of the year, Apple took 57 percent of profit in the handset business, while Samsung took 43 percent. That shows substantial growth for Samsung’s phones. For comparison, in the first quarter last year, Apple raked in 74 percent of profit, and Samsung took 26 percent.

In the report, Michael Walkley, a Canaccord Genuity analyst, said he believed that in the June quarter, slowing sales of the iPhone combined with strong sales of Samsung’s new flagship phone, the Galaxy S4, may catapult Samsung to the top spot.

If that were the case, it’s unclear whether Samsung would temporarily take the throne only until Apple introduces a new iPhone. Samsung’s growing market share, especially in foreign markets like China, India and Russia, has analysts speculating that Apple must introduce a cheaper iPhone, on top of its premium model, to retain its lead.

Laurence Isaac Balter, chief market strategist at Oracle Investment Research, which has clients that own Apple shares, is concerned about the Cupertino company’s future. The reason: Samsung makes so many different models of phones, and many customers are being lured to its Galaxy phones, which have bigger screens than all of Apple’s iPhones. That’s where Apple missed the boat, he said.

“Is the current iPhone size the future or is the larger screen?” Mr. Balter said. “The market is clearly saying the larger screen. People, when they’re faced between the two, are choosing the larger screen.”

Steve Dowling, an Apple spokesman, declined to comment on the report. But he pointed to the company’s last earnings call, where the company warned that its gross margins would probably continue to fall in the fiscal third quarter, dropping to between 36 and 37 percent.



India Ink: New American Bill Threatens Indian Outsourcing Companies

A new American immigration bill threatens the future of Indian outsourcing, Indian companies say, because it will limit the number of foreign workers they can bring to the United States.

India Ink: New American Bill Threatens Indian Outsourcing Companies

A new American immigration bill threatens the future of Indian outsourcing, Indian companies say, because it will limit the number of foreign workers they can bring to the United States.

Samsung Could Soon Surpass Apple in Handset Profit

Apple and Samsung Electronics are sucking up every penny of profit in the handset business. But Samsung’s mobile business is growing fast, and the question is: Could it surpass Apple in profit next quarter?

Analysts at Canaccord Genuity, an investment research firm, think so, according to a new report. The report, issued on Monday, said that in the first quarter of the year, Apple took 57 percent of profit in the handset business, while Samsung took 43 percent. That shows substantial growth for Samsung’s phones. For comparison, in the first quarter last year, Apple raked in 74 percent of profit, and Samsung took 26 percent.

In the report, Michael Walkley, a Canaccord Genuity analyst, said he believed that in the June quarter, slowing sales of the iPhone combined with strong sales of Samsung’s new flagship phone, the Galaxy S4, may catapult Samsung to the top spot.

If that were the case, it’s unclear whether Samsung would temporarily take the throne only until Apple introduces a new iPhone. Samsung’s growing market share, especially in foreign markets like China, India and Russia, has analysts speculating that Apple must introduce a cheaper iPhone, on top of its premium model, to retain its lead.

Laurence Isaac Balter, chief market strategist at Oracle Investment Research, which has clients that own Apple shares, is concerned about the Cupertino company’s future. The reason: Samsung makes so many different models of phones, and many customers are being lured to its Galaxy phones, which have bigger screens than all of Apple’s iPhones. That’s where Apple missed the boat, he said.

“Is the current iPhone size the future or is the larger screen?” Mr. Balter said. “The market is clearly saying the larger screen. People, when they’re faced between the two, are choosing the larger screen.”

Steve Dowling, an Apple spokesman, declined to comment on the report. But he pointed to the company’s last earnings call, where the company warned that its gross margins would probably continue to fall in the fiscal third quarter, dropping to between 36 and 37 percent.



David Ferrucci: Life After Watson

To the degree there was a human face of Watson, the “Jeopardy!” computer champion, it was David Ferrucci. He was the I.B.M. researcher who led the development of Watson, an artificial intelligence engine. The goateed computer scientist was always articulate and at ease in front of a camera or a microphone.

Dr. Ferrucci has left I.B.M. to join the giant hedge fund, Bridgewater Associates. And the weight of the Watson-related fame, it seems, played a role. “I was so linked to the Watson achievement, and where I.B.M. was taking it, that I felt I was almost losing my identity,” he said in a recent interview.

After Watson beat the best human Jeopardy champions in 2011, its artificial intelligence technology was directed toward new challenges, like assisting doctors in making diagnoses in a research project at the Cleveland Clinic.

Dr. Ferrucci led that next-generation Watson research as well. But he went to Bridgewater at the end of last year. Bridgewater, a private company, made no announcement of its new hire. Yet word of Dr. Ferrucci’s departure from I.B.M. has been circulating among scientists in the artificial intelligence field. And I caught up with him recently for an interview, supplemented by a lengthy e-mail he titled, “My Reflections.”

Dr. Ferrucci, 51, said he had “a great, great career” at I.B.M., spanning 20 years, and “they paid me very well.”
He said he “never imagined myself at a hedge fund,” but eventually the appeal of working in a smaller environment in an entirely new field for him â€" applying artificial intelligence to macroeconomic modeling â€" won him over.

Dr. Ferrucci said the more recent work he was doing at I.B.M., called WatsonPaths, was the direction he thought artificial intelligence research needed to go to make further advances, and it was the approach he saw Bridgewater pursuing to economic modeling.

Much of artificial intelligence today, he said, focuses on mining vast amounts of data to make predictions. Those predictions are based on statistical probabilities and patterns â€" a certain symptom is highly correlated with a certain disease, for example.

“But in a purely data-driven approach, I can explain my decisions,” Dr. Ferrucci said. “People are so enamored with the data-driven approach that they believe correlation is sufficient.”

The Big Data formula, he noted, has proved to be “incredibly powerful” for tasks like natural-language processing â€" a central technology behind Google search, for instance.

WatsonPaths, by contrast, builds step-by-step graphs, or paths, that trace possible causes rather than mere statistical correlations. In the case of medicine at the Cleveland Clinic project, for example, the paths go from an observation of symptoms to a conclusion about the diagnosis of a disease and treatment.

That approach is a hybrid of the Big Data tools, which sift through troves of medical literature, and logic tools to identify likely chains of inference â€" what humans see as logical explanations for the “why” of things. The approach is also a step in the direction of classic artificial intelligence, which relied on knowledge rules and relationships, to create so-called expert systems. The blend combines elements of what Dr. Ferrucci termed “my 30-year journey in A.I.”

At Bridgewater, Dr. Ferrucci sees a similar path to modeling the economy and markets. “Their approach to investment,” he wrote in his e-mail, “is based on a fundamental understanding of how the global ‘economic machine’ works.”

Its models, he added, are “informed by but not blindly driven by the data.” The opportunity, Dr. Ferrucci wrote, is to build “predictive systems that fit perfectly with my interests. How cool is it to imagine a machine that can combine deductive and inductive processes to develop, apply, refine and explain a fundamental economic theory?”



What Pakistan’s Election Means to Its People

The New York Times is interested in hearing from Pakistanis as the general election campaign comes to an end this week, promising the first democratic transfer of power from one civilian government to another in the country’s history.

Whether you are living in Pakistan or abroad, join the discussion here on The Lede by telling us what you think is the most important issue and why. Is it the economy? Widespread militant violence? Corruption? The United States’s drone campaign, the role of Pakistan’s powerful military, or something else? What is the importance of democracy and what are your hopes for the country?

Share your views in the comment thread below, in English or Urdu, or join the conversation on Twitter, using the hashtag #NYTWorld. Be sure to let us now where you live, how old you are and if you intend to vote.

Related Links:
Pakistan’s Government Steps Down, a Milestone
Extremists Pursue Mainstream in Pakistan Election
Profiles of Pakistani Candidates
A Secret Deal on Drones, Sealed in Blood
New Boldness From Militants Poses Risk to U.S.-Pakistan Ties



What Pakistan’s Election Means to Its People

The New York Times is interested in hearing from Pakistanis as the general election campaign comes to an end this week, promising the first democratic transfer of power from one civilian government to another in the country’s history.

Whether you are living in Pakistan or abroad, join the discussion here on The Lede by telling us what you think is the most important issue and why. Is it the economy? Widespread militant violence? Corruption? The United States’s drone campaign, the role of Pakistan’s powerful military, or something else? What is the importance of democracy and what are your hopes for the country?

Share your views in the comment thread below, in English or Urdu, or join the conversation on Twitter, using the hashtag #NYTWorld. Be sure to let us now where you live, how old you are and if you intend to vote.

Related Links:
Pakistan’s Government Steps Down, a Milestone
Extremists Pursue Mainstream in Pakistan Election
Profiles of Pakistani Candidates
A Secret Deal on Drones, Sealed in Blood
New Boldness From Militants Poses Risk to U.S.-Pakistan Ties



Tech Lobby Pushes for Tweaks to Immigration Bill

Lobbyists for the technology industry, having gained much of their wish list in the immigration bill drafted in the Senate, are now pushing to modify language they consider onerous.

The Senate bill, which is scheduled for markup in the Judiciary Committee on Thursday, would allow Silicon Valley companies to bring in many more foreign computer specialists on temporary work visas through a program known as H-1B. The bill also places restrictions on how companies can hire and fire employees, which the industry’s representatives in Washington are trying to massage.

For one, the industry is worried about a provision, inserted by some Senate Democrats, that would allow companies to hire a foreigner only if “an equally qualified American” is not available. The draft allows the Department of Labor to scrutinize hiring decisions, which the industry calls undue interference.

The bill also contains language that compels companies to promise not to lay off American workers within three months of hiring foreign guest workers. Additionally, if a company like I.B.M. places a foreign worker at a client company’s site â€" say, a bank â€" for a short-term project, the bill also requires the bank to prove it did not displace an American worker in the process.

Lobbyists for Silicon Valley say those provisions are unworkable. They hope to persuade lawmakers to tweak the language to their advantage, even as they continue to aggressively lobby for the passage of the overall immigration package.

“These provisions are troubling, they are going to be hard to live with,” warned Scott Corley, president of Compete America, a coalition of Silicon Valley firms. “But over all this is a good bill.”

Unveiled in April after weeks of bipartisan bargaining on Capitol Hill, the legislation would expand the annual availability of H-1B visas to 110,000, from the current 65,000, and include a provision to make more available during years of high labor demand. The current cap of 65,000 was filled in less than a week this year, signaling demand.

A recent study by the Brookings Institution showed that in 2010, the most recent year for which comparable statistics are available, about one in three of all H1-B visas approved went to those who studied here and were looking to stay on and work.

The bill draws a line in the sand between these technology firms and the mostly Indian companies that bring computer workers on H-1B visas for short-term jobs at United States companies. The bill is written so that it penalizes companies that have a large share of foreign guest workers among its United States work force. Those are mainly outsourcing firms, many based in India, and it eventually makes it impossible for them to bring in any more. It allows large American companies that have many more American workers to continue to import workers.



Daily Report: Apple’s Grip on Accessories Is Slipping

For years, Apple’s clout in the electronics world could be gauged by how easy it was to bump into devices tailor-made for a connection to an iPhone or iPod, Nick Wingfield and Brian X. Chen write in The New York Times.

Hotels outfitted guest rooms with alarm clocks containing a telltale wedge of 30 tiny pins that could play music from Apple devices and charge their batteries. Retail stores were thick with sound docks and other speaker systems meant to work with Apple gadgets.

But Apple’s iron grip on the digital accessories in hotel rooms, store shelves and living rooms is starting to slip â€" potentially risking the royalties it earns from accessory makers and, more significant, giving Apple customers more freedom to switch to rival products. That could be an issue for a company whose stock has been shaken in recent months as investors worry that the iPhone business is slowing.

Jeremy Horwitz, editor in chief of iLounge, a Web site devoted to Apple accessories, said Apple’s aggressive control over accessories for its products drove many makers to more open means of connecting devices, which helped feed the success of mobile devices made by other companies.

“At some point Apple’s obsession with having control over everything that is associated with its products may wind up biting it,” Mr. Horwitz said.

The Bluetooth standard for wireless connections has allowed accessory makers to build products that can work with many kinds of devices because they no longer have to worry about a physical hook. Other phone makers like Samsung and tablet-computing device makers like Amazon have become strong alternatives in the eyes of shoppers.

And Apple itself provided an opening for competitors when it changed the way its phones connect to other devices, aggravating both its business partners and consumers.

Now accessory makers are eager, even obliged, to think beyond Apple.



Media Giants Chase Online Ads With Original Shows

Media Giants Chase Online Ads With Original Shows

James Best Jr./The New York Times

Everyone wants to be in show biz, and these days â€" on the Web at least â€" it seems as if everyone is.

AOL has based “#CandidlyNicole,” an original online video series, on the Twitter comments of the celebrity Nicole Richie.

Digital and traditional media companies, including newspapers and magazines, have for years been building a video presence on the Internet. But until now the offerings have largely been low-budget, single-camera affairs featuring talking heads.

Last week, however, major media companies like Condé Nast, The Wall Street Journal and Univision presented ambitious slates of original programming to advertisers for the first time.

Companies that were already producing Web content, like Yahoo and Hulu, also announced greatly expanded offerings.

As a result, viewers are being bombarded with an array of new Internet programs â€" 11 from Yahoo, 14 from AOL and a whopping 30 from Condé Nast, including one that will let viewers watch a Vogue editor, Hamish Bowles, as he shops around the world.

Hulu’s four new original offerings include one called “Behind the Mask,” a show it describes as a “comedic docu-series,” which looks at the world of sports mascots.

These companies are moving rapidly because they believe viewers are now so accustomed to watching programs on devices like mobile phones and tablets that the lines between traditional television and Internet video will blur.

But the companies are also acting out of desperation because many of them can command higher prices for video ads than traditional online banner ads, which are increasingly being undermined by fast-paced algorithmic buying technologies.

Advertisers are also shifting dollars from traditional display advertising to sites like Facebook that can deliver huge audiences. Media companies were wooing ad executives in New York last week during an advertising event called Digital Content NewFronts that is trying to imitate the success of the network television upfronts, which are being held later this month. At lavish open-bar parties, companies not previously known for programming tried to convince advertisers to sponsor shows, or better still, whole channels.

Yet even with the amount of so-called premium content booming, it is not clear ad dollars are following. According to data from the research company eMarketer, spending on digital video â€" while growing â€" is expected to reach only $4.14 billion in 2013, a far cry from the $66.35 billion expected to flow into the television market.

Many advertisers say they worry that with so much new content being thrown at the market on so many different platforms, audiences for individual shows will become even more fragmented and microscopic than they already are.

“I don’t care how good your attention span is,” Rino Scanzoni, chief investment officer of Group M, said of the crush of new offerings, “I think it becomes all a blur.” Group M is one of the world’s biggest media-buying and planning agencies.

Ben Winkler, chief digital officer of the advertising agency OMD, which represents brands including Pepsi and Nissan, called it “cable to the nth degree.”

“We are talking narrow, narrow television, niche television if you will,” he said. “If you are reaching just 100 people, is it worth our time and energy?”

AOL is one of the companies making a big bet on “premium video,” or video it hopes will generate greater ad revenue because of higher production values. Tim Armstrong, the company’s chief executive, said in an interview: “Consumers are adopting video very quickly: big investment in devices and networks, big investments by the most talented creative people to get involved in this medium; and big investment in measurement. So I think this industry is about to explode.”

Many online sites are citing the success of “House of Cards,” the Netflix series that drew critical praise this winter, as proof that the moment for video content has arrived. But “House of Cards,” with top-flight talent and sophisticated production values, was hugely expensive. And Netflix relies on subscriptions, not advertising.

For now, most digital companies are looking to produce programming that, while more expansive than one-camera fare, is still cheaper than TV.

Bill Carter contributed reporting.

A version of this article appeared in print on May 6, 2013, on page B1 of the New York edition with the headline: Betting on ‘Premium Video’.