Ma vs. Musk – is AI boom or doom?

Jack Ma and Elon Musk recently debated the future of AI, with one believing AI will bring humans more freedom from the menial tasks, and another seeing in AI the end of human beings in the current shape.

Jack Ma, the founder and former head of Alibaba and now the Co-Chair of the UN High-Level Panel on Digital Cooperation, and Elon Musk, the founder of Tesla, SpaceX and other ventures, took to the stage at the World Artificial Intelligence Conference (WAIC), currently being held in Shanghai, China, to debate the virtue and vice of AI.

The dialogue, unmoderated, sometimes felt awkward, when the two looked to struggle to find a common anchor point. (The full dialogue is embedded at the bottom of this report.) But there were also agreements occasionally, for example both agreed AI will displace many jobs. However, the two entrepreneurs took very different views on the role AI can ultimately play, especially when it comes to its impact on the future of mankind. Ma took a rather utopian view, claiming AI can help human beings understand and take care of ourselves. He conceded that lots of the jobs many people are doing now will be lost to AI, but he saw that as a positive thing, because “I think people should work three days a week, four hours a day.” There were also a few throwaway claims, like “In the artificial intelligence period, people can live 120 years,” therefore “we need artificial intelligence for the robots to take care of the old guys.”

Musk took a much darker view on AI. He believed the ascendency of AI, with its much higher “bandwidth” than human brains (“a few hundred bits per second, basically, maybe a few kilobits per second, if you’re going to be generous), will render human jobs “pointless” and ultimately take over everything. “Probably the last job that will remain will be writing AI, and then eventually, the AI will just write its own software,” Musk predicted.

It has to be pointed out that both men have invested interest in the topic and the viewpoints they took reflected their interests. Ma, despite that he had stepped down from the CEO’s position, would not be able to dissociate him from Alibaba. His quip at the beginning of the dialogue that “I would like AI to mean Alibaba Intelligence” certainly did not help the perception that he is detached from the business. Alibaba is one of the world’s heaviest user of AI both in e-commerce and increasingly in its cloud computing business – the company acquired Whale Cloud from ZTE to dovetail with its own Alibaba Cloud to serve different clients. Additionally, AI was supposed to play an important role in making lending decisions by Ant Financial, an Alibaba affiliated company, but it was reported earlier the system has not been reliable enough.

Musk’s interest in AI, and its link to the views expressed at the conference, is more complex. He founded OpenAI, a research company, but had decided “to part ways on good terms” with it in 2016. Tesla, and the autonomous car market in general, will increasingly use AI. But more recently he has been directly involved in brain-machine interface (BMI) with his new venture NeuraLink. In July the company applied to US regulators to start trialling its probe device on humans. The flexible threads, thinner than a human hair but connected with over 3,000 electrodes and able to monitor the activity of 1,000 neurons, could connect specific areas of the brain to computers. The first target was to provide AI support to paralyzed patients.

So, there was little surprise when Musk advocated connecting the low bandwidth human brains to the computers that “can easily communicate at a terabit level”, so that human beings could “go along for the ride with AI”, or what he called “symbiosis with artificial intelligence” when he was introducing the new NeuraLink technology earlier. He saw in AI a future where AI will be able to “completely simulate a person in every way possible.” He even went philosophical at WAIC by saying “there’s a strong argument, we’re in the simulation right now.”

(This “strong argument” is not actually new. Chuang-tzu, one of the Taoism masters from 4th century BC, famous stated “Now I do not know whether I was then a man dreaming I was a butterfly, or whether I am now a butterfly, dreaming I am a man”. There are at least two counterarguments to refute this speculation. One is it cannot go through the Popperian test, that is the argument cannot be falsified. Another is there are simpler answers to address the nature of the question, with lower level of entropy, therefore should always be preferred. Both arguments have been extensively explored by Prof David Deutsch, the quantum physicist, in his 1997 book “The Fabric of Reality”.)

Incidentally, Elon Musk recently endorsed Andrew Yang for the 2020 presidential election. Yang, the entrepreneur-turned candidate, champions universal basic income, arguing such a measure would provide the basic safety in the face of massive job losses to AI. According to the research quoted by Yang, among the most vulnerable groups would be the truck drivers and retail cashiers which are generating the biggest number of jobs in America nowadays. It would be very hard to retrain these people quick enough to handle AI-powered positions. In that sense, Jack Ma’s claims that “don’t worry about the machines” and “we will have jobs” may be too optimistic.

Vodafone Spain rumoured to be considering fixed network sale

The rumour mill is churning at maximum speed as Vodafone Spain is reportedly considering a sale of its fixed network for €1.2 billion.

It would appear to be an unusual move. With many national business units shifting towards a convergence business model, divesting its fixed networks assets would take the Spanish unit the other direction.

According to Spanish news site Expansion, the business is currently undergoing a restructure, owing to difficult market conditions, and the sale of the fixed network could certainly add some much-needed cash into operations.

“Currently there is no project that is working on the complete sale of the network proactively, although possibilities are always being analysed and studied to find efficiencies and improve the profitability provided by assets, such as the possible partial sale,” a spokesperson said.

The Spanish market is a tricky one to master currently. After the management team deemed renewing TV rights for the Champions League and La Liga football competitions were deemed unprofitable, Vodafone Spain lost 71,000 TV customers almost immediately, though the mobile business did grow gradually over the course of 2018.

Looking at the most recent financial results, alongside Italy, Spain is proving to be the problem child of Vodafone’s European family. Year-on-year revenues declined by 9.3% for the second quarter of 2019, though tariffs have been overhauled to create a more competitive proposition.

However, alongside the new data tariffs, Vodafone’s rivals launched their own promotions which appear to be much more attractive. Over the three-month period, Vodafone lost two corporate accounts, 158,000 postpaid mobile subscribers, 49,000 fixed broadband customers and 24,000 TV customers.

Although these rumours are far from a sign anything will actually happen, we’ll wait for a potential buyer to make themselves known before investing too much energy, it does seem to be a strange move. Vodafone does of course need cash ASAP, though if it still wants to persist with the convergence strategy in Spain it would have to enter into a leasing agreement with one of the other network owners should the sale go through. It does appear to be somewhat short-sighted.

Google exposes massive iPhone hacking operation

Google’s Project Zero security team has revealed a vulnerability in iOS that exposed large numbers of users to a hack that allowed the installation of a monitoring implant.

This kind of hack is called ‘zero-day’, the definitions of which vary, but which refers to a vulnerability in a piece of software that leaves it open to exploitation by outside actors. The stated aim of Project Zero is to make zero-day hard and it goes about doing so by trying to find such vulnerabilities. Apparently it always publishes these findings after giving the owner of the software time to address the vulnerability and Apple was told about this one back at the start of February this year.

“Now, after several months of careful analysis of almost every byte of every one of the exploit chains, I’m ready to share these insights into the real-world workings of a campaign exploiting iPhones en masse,” wrote Ian Beer of Project Zero in the blog post detailing the findings. “Let’s also keep in mind that this was a failure case for the attacker: for this one campaign that we’ve seen, there are almost certainly others that are yet to be seen.”

This is at best very embarrassing for Apple, which prides itself on the relative lack of malware on its close software platforms. The malware was able to install itself on iOS devices if they merely visited an infected website, with no manual download required. Upon successful installation the malware apparently granted the bad guys access to everything on the phone, including passwords, chat histories, etc.

Google is, of course, Apple’s sole rival in the mobile operating system space, so it does seem pretty convenient that it should be discovering iOS vulnerabilities and publicising them. Project Zero’s policy, it seems, is to publish all such findings after an appropriate delay to allow for patching, which it should be stressed Apple did immediately, but you have to wonder whether it’s quite as keen to bring Android’s failings into the public domain.

Sunrise claiming 80% (no joke) 5G population coverage already

It might be a small country, and its citizens might be concentrated in the cities, but Switzerland is driving forward with 5G like few other countries around the world.

Switzerland is not the biggest of markets, but it is demonstrating how competition can drive network deployment forward. Alongside market leader Swisscom suggesting it will have 90% population coverage by the end of 2019 for 5G, Sunrise is claiming it has already hit the 80% milestone.

With 262 cities and towns already covered in the 5G blanket, the Swiss consumers are getting treated to a connectivity euphoria few others can claim to match.

“At the start of April, we launched our 5G network for selected customers,” said Olaf Swantee, CEO of Sunrise.

“This makes us the first 5G provider in Switzerland and Europe. Since then, we have successfully extended our lead. The Sunrise 5G network is the biggest in the country and sets a benchmark in terms of coverage quality.

“We do not differentiate between ‘fast’ and ‘wide’, between fast and slow 5G. Private and business customers want good and fast 5G coverage. That’s why we will also be offering 5G coverage in all Sunrise Shops by the end of the year. In addition to this, we will be launching a dedicated solution for companies, allowing them to benefit from 5G as soon as possible to aid their digitization.”

The first phase of this 5G push is upgrading existing cell sites. This is the simplest aspect of the strategy, though with Huawei’s ‘LampSite’ solution the Sunrise team is addressing the indoor coverage dilemma. As the focus on indoor coverage moves forward, the team is quickly turning its attention to driving ROI through enterprise solutions.

So, what is different in Switzerland? How have the telcos driven forward so quickly into the 5G era?

Firstly, you must take into account the size of the country. At 41,284 km2, Switzerland is ranked 132nd worldwide. It is not massive. And with a population of roughly 8.5 million, it is listed at 99th globally.

Secondly, ARPU is notably higher in Switzerland. During the last quarter, ARPU for post-paid customers was £32.01 for Sunrise. This compares to £20.7 at EE in the UK or £15.33 in France with Orange. Not only does this offer more free cash to drive network investments, it provides more security and confidence when judging ROI.

Thirdly, competition is critically important here. With Swisscom being aggressive with its own rollout, Sunrise has to keep pace. And the faster Sunrise moves, it drags Swisscom forward as well. It is competition at its finest, a virtuous cycle.

Finally, the presence of Olaf Swantee should not be underestimated. As Ovum’s Paul Lambert points out, Swantee is aware to the power of 5G, and having led EE’s successful 4G deployment, the drive and experience to move into the next generation is right at the top of the organization.

Sunrise is not particularly in the same league as Swisscom for the moment, though an aggressive push towards 5G could bridge the gap (6.3 million subscribers at Swisscom, versus 2.4 million at Sunrise). This appears to be the strategy employed by Sunrise according to Lambert; scaled 5G coverage offers a differentiator for the telco and an opportunity to capture higher paying customers.

What is worth noting is population coverage is very different to geographical coverage. Switzerland is a highly urbanised country, roughly 73% live in urban environments, easing the demands on network deployment. When you look at the rural landscapes in Switzerland however, the challenges start to mount up very quickly.

This is a common trait in the majority of the markets where 5G has gotten off to a flying start. South Korea is another example of a market moving very quickly towards the 5G era, and once again, it is a highly-urbanised country. The UK is a third which has the advantage of a relatively small land mass, combined with a concentrated population.

Although these are factors which will simplify the network deployment equation, that should not take away from the progress being made across the Swiss telco industry. In the absence of coverage obligations, good old competition and ambition is driving the agenda.

Industry 4.0: Putting CSPs at the heart of global business

With 5G quickly becoming a real-world presence and the Internet of Things picking up speed, we are on the cusp of the Fourth Industrial Revolution. This exciting new age will see unprecedented levels of automation, convenience and connectivity and represents a real opportunity for Communication Service Providers (CSPs). 

However, as with all opportunities, Industry 4.0 also brings new challenges. While CSPs stand at the precipice of an exciting new – and profitable – market, operations and service delivery will be more complex than ever before. Critical functions will require 100% uptime and reliability, meaning new ways of designing, building and operating networks that are heavily reliant on automation, analytics and AI. 

The industrial market is far more complex than the consumer market and network availability and reliability can quickly become a matter of life or death in the cases of remote surgery or autonomous vehicles. There will be no “one-size-fits-all” approach and the communications market will fundamentally change to accommodate this, with new business models and new players performing roles we can’t even conceive of today. 

Much as you wouldn’t visit a mechanic to fix a broken leg, you wouldn’t expect the network supporting a hospital to be the same as one serving autonomous vehicles. The underlying technology may be the same, but the requirements for maintaining a patient’s heartbeat, the safety of a car and the positioning of steel in a factory are very different. Speed and low latency alone aren’t the answer. 

Network slicing will be the only way of managing this complexity and building networks capable of meeting the needs of every component and device. With network slicing, the layers are harmonized to create one stable, unified, digital operations model. Through slicing, operators can meet the strongest requirements when it comes to latency and reliability, opening new markets and making it possible to do more with their network.  

Network slicing allows the active management of every connection in the network, so time-critical control can be guaranteed. It’s a premium proposition that commands a premium price, but it’s also an incredibly complex approach that requires investment and planning now to enable in the future. 

Network slicing will only work with extreme levels of automation, prediction and the ability to continuously monitor and manage the network. It will also require that CSPs have the forethought to identify which industries and use cases to support. Today, this means cloudifying operations and investing in predictive and automation technologies. Tomorrow it means enabling new ways of doing business to suit the diverse industries and use cases CSPs support, providing bespoke, premium services to support the myriad requirements and service level agreements that cannot be addressed by a one-size-fits-all network configuration, but rather by tailored, dynamically managed slices.

Deciding which industries to support and identifying IoT use cases today will help CSPs transition seamlessly into the industrial market to join burgeoning ecosystems and claim their place at the heart of industry 4.0. It’s a very different landscape to the consumer marketplace, however, and CSPs need to invest in the technologies and processes to pave the way for the new connectivity requirements of industry 4.0 today to stay ahead of new players and interlopers seeking their own piece of the pie. 

Interested in hearing industry leaders discuss subjects like this? Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, and Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London, and Amsterdam.

Interdigital sues Motorola-owner Lenovo over 4G patents

Mobile and video tech developer Interdigital has filed patent infringement action against Lenovo in the UK because they can’t agree a price for use of its 4G patents.

Perhaps wary of being labelled a patent troll, Interdigital is keen to stress that this is the first patent infringement litigation it has initiated for six years. It claims its hand has been forced after the failure of almost a decade of negotiation with Lenovo, which makes Motorola phones as well as its own-branded devices.

Interdigital reckons it owns around 10% of the standards-essential patents in both 3G and 4G technology, which means it gets a piece of the action whenever someone sells a device that uses them. How much users of these patents have to pay is usually determined on a FRAND (fair, reasonable and non-discriminatory) basis, but apparently Lenovo won’t even accept third party FRAND arbitration.

Patent litigation canned comments are among the most formulaic, but let’s have a look anyway. “Having product companies take fair licenses to patented technologies flowing out of fundamental research is absolutely essential for the long-term success of worldwide standards like 4G and 5G,” said William Merritt, CEO of Interdigital.

“InterDigital has a long history of valuable technology innovation and patient, good faith negotiation and fair licensing practices, including our willingness to allow the economic terms of a FRAND license to be determined via binding neutral arbitration. We also have longstanding licensing relationships with many of the top companies in the mobile space, including successful license arrangements with Samsung, Apple, LG and Sony, among others.

“For our company, we turn to litigation only when we feel that negotiations are not being carried out in good faith. In bringing this claim in the UK High Court of Justice, which has a history of examining standards-essential patent issues, we are hopeful for a speedy resolution and a fair license.”

Here are the patents in question:

  • European Patent (UK) 2 363 008 – Enables the efficient control of carrier aggregation in 4G (LTE). In advanced mobile phones, carrier aggregation is key to achieving high data rates.
  • European Patent (UK) 2 557 714 – Supports the use of multiple antennae transmissions in 4G (LTE). The patent enables the use of flexible levels of error protection for reporting by the handset, increasing the reliability of the signaling.
  • European Patent (UK) 2 485 558 – Allows mobile phone users quick and efficient access to 4G (LTE) networks. One of the main technological challenges of developing LTE networks was efficient bandwidth usage for various traffic types such as VoIP, FTP and HTTP. This patent relates to inventions for quickly and efficiently requesting shared uplink resources — for example, reducing lag when requesting a webpage on a smartphone on LTE networks.
  • European Patent (UK) 2 421 318 – Decreases latency during HSUPA transmission by eliminating certain scenarios in HSUPA where scheduling requests may be blocked. A blocked scheduling request may prevent a smartphone from sending data.

Interdigital presumably has others that Lenovo is using in its devices, so either there’s no dispute over the them or Interdigital is focusing on the four juiciest ones, who knows? Patent litigation is pretty arcane stuff at the best of times, but it seems like Lenovo must have really pushed its luck for its relationship with Interdigital to come to this. It’s hard to see how they can justify refusing to go to FRAND arbitration, but there could well be extenuating circumstances that will come to light in due course.

Apple given golden opportunity to crack India with relaxed rules

Apple has struggled to gain any sort of traction in the Indian markets to date, but new Government rules could perhaps open the door a crack.

India is a market which represents a significant opportunity for the major players in the digital economy. It has the second-largest population globally and a smartphone penetration rate of roughly 24%, but one of the few markets worldwide where smartphone shipments are increasing quickly. Thanks to certain market disruptions, India is currently under-going its own digital revolution, with the increasingly wealthy middle-class easing into the digital euphoria Western consumers have been accustomed to as the norm.

Year Smartphone penetration1 Average income (US $)2
2018 23.9% 2,020
2017 21.9% 1,830
2016 20.4% 1,690
2015 18.6% 1,600

1Statista 2World Bank Group

The evolution of India and the surge of the digital economy in the country is moving at a dramatic pace. The opportunity for profit is monstrous, but this is a tricky market to crack.

This is the conundrum which Apple is currently facing. It currently has less than 2% of market share across the country (which isn’t increasing), and premium prices are stifling any genuine ambition to increase this.

Indian consumers are gradually spending more on devices, though by the time Apple’s prices would be deemed palatable, other brands might have already developed a strong sense of loyalty; do not underestimate the power of the Android/iOS divide.

Brand Market share
Xiaomi 31%
Samsung 26%
Vivo 6%
Oppo 6%
Realme >1%
Apple >1%

Figures curtesy of Counterpoint Research – Q2 2019 shipments

However, there is a glimmer of hope. The Indian Government has this week announced it will relax rules which dictate how foreign companies can operate in the country. Fortunately for Apple, the easement will allow it to sell directly to customers through its eCommerce channels.

In by-gone years, a foreign company had to source 30% of its production locally to create a retail presence in India. This presence includes online channels. With such reliance on China for the manufacturing elements of the supply chain, Apple has always struggled to meet these requirements. As a result, Apple’s devices have been sold through local partners, who add a premium to an already premium product; it has struggled to gain a foothold in the market.

Another element tied to this is the brand story. The Apple Store is a presence in 25 countries around the world, not only presenting a direct-selling opportunity, but a chance to offer an experience to current and potential customers. This is a fundamental building block in the Apple strategy, which is all about creating a brand and an identity to cultivate customers into the loyal iLifers you see around the world today.

Thanks to new elements being considered by the Indian Government, Apple now meets the requirements and will allegedly begin selling products through its own eCommerce channels in the coming months. These new considerations take into account more iPhones will be manufactured in India, not only for Indian consumers, but for export to Europe as well. This is massive win for Apple.

In short, there are two massive benefits for Apple. Firstly, it can own the purchasing relationship with the customer, dictating the messaging and reducing the price while maintaining profit margins. Secondly, it can begin to create the Apple experience for customers to nurture the sense of loyalty which is so critical to the Apple success over the years.

Apple is an incredibly successful smartphone manufacturer because it creates excellent devices, but the work which has been done to build loyalty with its customer base should never be underestimated.

Think back to the 90s and 00s when you saw Apple adverts on TV. None of these adverts ever really discussed products in the way you would expect but talked about the Apple experience. A huge proportion of advertising today is designed around story-telling and brand experience, but Apple was arguably one of the first to do it and remains one of the best at building this experience.

The result of these campaign was an ‘us’ and ‘them’ mentality which persists today. Whether it pins iOS versus Android, or Mac versus PC, the split is very apparent, and crossover is very rare. Not only does this segmented approach maintain loyalty for the individual products, it presents significant cross-selling opportunities. How many iPhone users have an iWatch, an iPad or a Mac also? We suspect a high percentage.

Shifting people into, and keeping them in, the Apple universe can partly be attributed back to the brand marketing campaigns, the closed ecosystem and ownership of sales channels and brand experience. And now, it presents another massive opportunity moving forward; software and services revenues.

Period Net sales Software and services revenue Percentage of total
Q3 2019 53,809 11,455 21.2
Q2 2019 58,015 11,450 19.7
Q1 2019 84,310 10,875 7.7
Q4 2018 62,900 9,981 15.8
Q3 2018 53,265 10,170 19
Q2 2018 61,137 9,850 16.1
Q1 2018 88,293 9,129 10.3

Figures taken from Apple financial reports – USD ($) in millions

Apple CEO Tim Cook has made a big deal about software and services, and he is very right. It attracts recurring revenues without the R&D and manufacturing price tag. There will of course still be R&D, but smartphones are very expensive products to produce at the level Apple customers demand.

Generating revenues through AppleCare, iTunes, Apple Music, iCloud, Apple Pay, Apple Books, Siri, maps, search or TV subscription services becomes substantially more profitable once people are bought into the ecosystem. And as you can see from the table above, it is becoming an increasingly important facet of the financial spreadsheets.

With many users persisting with the OS they have become accustomed to, if Apple wants to make India a profitable market, it will have to start embedding itself in the minds and lives of Indian consumers today.

The Indian market is one which offers great prospects and profits for those who play their hands wisely. Up to now, Apple would have been written off by many industry commentators, but will changes to the rules, the door is slightly ajar. But that is all it is right now.

Apple will have to convince smartphone users it is a better alternative than the Android ecosystem, while also justifying the premium it traditionally charges for products. This will be a very difficult battle, but Apple is in a better position today than it was yesterday.

Korea Telecom and Tessares claim 5G Low Latency Multi-Radio Access Technology first

The first commercial test of a 3GPP Release 16 technology designed to improve dynamic switching between 5G and wifi has been claimed by KT and Tessares.

The proper name for the tech is Access Traffic Steering, Switch and Splitting and the reason we care about it is that is could significantly improve the way devices choose and switch between cellular and wifi, depending on the circumstances. ATSSS was defined in collaboration with KT, Apple, Deutsche Telekom, Orange, and Cisco and is based on Multi-Path TCP technology, apparently. Here are a couple of diagrams from Tessares that explain the point of it further.

Tessares ATSS 1

Tessares ATSS 2

“ATSSS technology reduces the initial session setup time to achieve 5G ultra-low latency in a multi-radio context, resulting in a setup delay of less than half compared to previous approaches,” said the press release. KT and Tessares seem to be spearheading the development and standardization process.

“The success of this low latency multi-radio access technology test will allow customers to take advantage of existing LTE and Wi-Fi networks, as well as 5G, to enable wireless services at higher speed and quality.” said Sun-woo Lee, SVP of the KT Infra R&D Laboratory. “KT will continue to develop core 5G technologies to strengthen its R&D capabilities.”

“We are convinced that mobile Internet usage requires an efficient combination of all existing network assets such as WiFi, LTE and 5G,” said Denis Périquet, Tessares CEO. “We are delighted to have collaborated with KT, who is clearly leading the 5G race, to demonstrate the benefits of ATSSS.”

This technology presumably promises all kinds of wireless cleverness, but we’d be happy if all it achieved was to make devices smart enough to dynamically pick the best network available and make manually switching between them less fiddly than it currently is.

Google writes opening line of Huawei smartphone obituary

Huawei’s next flagship smartphone will not feature official Google applications as the weight of the US ban finally hits home.

Speaking to reporters in the US, and first reported by Reuters, a Google spokesperson said the Huawei Mate 30 rumoured to be launched in October, cannot be sold with licensed Google apps and services. This is a significant setback to Huawei’s consumer division and begs the question as to whether anyone would now consider the devices without the Android OS and supporting app ecosystem.

The blow from Google of course leads back to the White House. In entering Huawei and its affiliate companies on the Entity List, US suppliers are banned from supplying any products, components or services to the Chinese vendor. This includes Google, with its horde of popular applications and platforms.

There has of course been a moment of reprieve for some US suppliers. President Trump said there will be an extension on the ‘grace period’ afforded to Huawei and its US supply chain, though Google has now stated this only applies to devices which are already on the market. As long as the conflict between Beijing and Washington persists, it looks like the new Huawei devices will have a Google-shaped hole in them.

Although Google has not confirmed whether it has applied for an exemption from the ban, it has said in previous months it wishes to continue working with Huawei. Of the 130 applications sent to the US Commerce Department to seek a special licence to continue working with Huawei, none have been accepted thus far.

This is of course not as simple a situation as one might expect. Google owns Android, the open-sourced operating system. Huawei is not banned from using Android, it can’t be, but it is banned from being an official Android partner of Google. This means it will not be entitled to security and performance updates as soon as there are available. It can use the basic Android building blocks, but it will effectively have to build its own OS, which it has pretty much already done, but it will be a completely different product.

The confirmation from Google here is the news many Huawei fans will not want to have heard. The Mate 30 will not feature popular applications such as Google Maps, or the Goole Play Store where users can download other apps. These are only two examples, though they are critical elements of any Android smartphone.

The question which remains is whether anyone will buy a Huawei smartphone now?

We suspect not, assuming they have kept up-to-date with developments or done the slightest bit of research. There will of course be a market for Huawei in China, there is a sense of patriotism there propping up the business, though this could be the beginning of the end for Huawei in Western (perhaps all international?) markets.

A Google-less future is the new status-quo for Huawei, and unless this changes quickly, we suspect its smartphone business will be a shadow of its former-self in a very short period of time.

For those who have been plotting and scheming the downfall of Huawei, this is the first sign of success. For months, the Chinese vendor seemed to be immune to the collateral damage from the US/Chinese trade-war, though now it has finally hit home.

The consumer business unit has been very kind to Huawei executives over the last couple of years. Thanks to the creation of consumer devices which performed well and were reasonably-priced, and an extensive above-the-line advertising campaign to drive the Huawei brand, Huawei has become one of the most popular consumer electronics brands worldwide. It has consistently been the number two smartphone brand for shipments globally in recent years, while the consumer business group is now the largest contributor to group revenues at the firm.

In its recent financial statement, Huawei reported another year-on-year revenue increase, though it did appear growth in the smartphone business was driven by domestic smartphone sales. Research from Canalys suggests smartphone sales in Western Europe were down for the second quarter by 16%, with Samsung and Xiaomi benefitting. Unless the situation changes, we cannot see anything but a dramatic decline in Huawei smartphone sales in Western markets, and perhaps this misery will spread to all of Huawei’s international market.

This is currently an incredibly profitably and valuable business to Huawei executives and shareholders, though now it appears it has been cut-down at the knees by the White House and the Trump administration.

Smart Home Threat Landscape

The explosion of IoT devices in people’s homes and offices is attracting attention from cyber criminals. And thanks to the security problems commonly found in these devices, they present attackers with low hanging fruit to pick. According to F-Secure Labs, threats targeting weak/default credentials, unpatched vulnerabilities, or both, made up 87% of observed threats.

In late 2018, F-Secure’s network of reconnaissance honeypots servers observed a huge spike in threats targeting exposed telnet ports. Mirai uses this infection method to go after devices through default passwords. This explosion of attacks suggests that there is still plenty of “easy prey” out there and criminals are going after it. Of the attacks observed by F-Secure’s honeypots in 2018, 59%, were attacks targeting Telnet 4 – a trend F-Secure Labs attributes to the spread of Mirai malware.

Securing the smart home requires confronting the rampant vulnerabilities in IoT devices. In addition, the rising number of connected devices on home networks must be as secure as PCs and mobile devices. By inviting more and more tools into the home that can be used to track and observe consumers, security and privacy will play an increasingly crucial role in our lives.

Download this whitepaper to learn the following:

  • A quick history of IoT threats
  • Common IoT threat characteristics
  • How do we stop this growing attack vector in the smart home?