Heres Why Trump Went Postal on Amazon

Here’s Why Trump Went Postal on Amazon

The Amazon blame game took another turn on Thursday, when President Donald Trump spun the wheel back around to the U.S. Postal Service. Amazon.com Inc. is a convenient scapegoat for just about any issue. The mail is no different.

Amazon isn’t killing the post office. Since signing a landmark contract in 2013 to expand their business relationship and deliver packages on Sunday, revenue has ticked up; losses are down; and shipping is just about the only growth segment in the mailbag. The Postal Service is saddled by larger issues. Sure, there’s the internet, and nobody is sending postcards anymore, but the big financial dilemma is the agency’s yearly obligation to set aside cash to cover health care costs for future retirees. This accounts for billions in losses.

Give Up?

U.S. Postal Service makes small improvements but is nowhere close to sustainable

Source: U.S. Postal Service

U.S. mail is also required to cover every American, employing carriers who roam neighborhoods six days a week (or seven, if Amazon has a package ready). The Postal Service has said it actually makes money on the Amazon deal. E-commerce revenue provides “essential support to pay for the network and infrastructure that enables us to fulfill our universal service obligation,” David Partenheimer, a spokesman for the Postal Service, wrote in a January op-ed. “All users of the mail benefit.”

The Amazonification of U.S. Mail

Shipping revenue overtook junk mail for the first time last year

Source: U.S. Postal Service

Amazon rebuilt its delivery network around the post several years ago. The company operates “sortation centers” that complement warehouses and organize packages by zip code before sending them to post offices for the final leg of delivery. In Kenosha, Wisconsin, Amazon has a million-square-foot warehouse, connected to a 500,000-square-foot sort center with a covered conveyor belt that resembles an airport skybridge.

Ending the U.S. mail relationship would probably be a bigger setback for Amazon than for the Postal Service. On a dark day in late 2011 when the postmaster general proposed cutting 100,000 staff and shutting thousands of post offices, EBay Inc. shares dropped more than 6 percent. Amazon’s deal came soon after, and radical cuts were avoided—probably not a coincidence.

So the e-commerce giant got the Postal Service off life support, but any benefit beyond that is minimal. Nothing short of a complete overhaul of the mail system, some kind of bankruptcy-style financial restructuring or reneging on those health-care promises would turn the Postal Service into a sustainable business.

Maybe that’s Trump’s goal. Building an antitrust case against Amazon—an idea the President has floated—is a tall order. Amazon’s five-year contract with the Postal Service could be up for renewal this year. Breaking up that relationship would be an easier way for Trump to inflict pain on the #AmazonWashingtonPost, as he calls it.

Fully Charged

And here’s what you need to know in global technology news

A Facebook executive advocated for a grow-at-all-costs mentality in a controversial 2016 memo. BuzzFeed obtained a copy of the staff email from longtime executive Andrew Bosworth, which said deaths or terrorist attacks shouldn’t get in the way of the company’s mission to connect people.

Google is helping shape the future of U.S. wireless networks. The company’s plan to overhaul how valuable airwaves are used for calls and texts is gaining momentum.

Tesla is recalling about 123,000 cars. The voluntary recall affects all Model S sedans built before April 2016, capping the automaker’s worst month-long performance on the stock market since 2010.

Microsoft unveiled its biggest reorganization in years. Devices and software will live together, and Windows is now part of the cloud division. Windows chief Terry Myerson will depart as part of sweeping changes by CEO Satya Nadella.

The man who steadied Twitter wants to sell you a mortgage. As CEO of student-loan refinancer SoFi, Anthony Noto has to upsell the company’s high-earning clientele and fend off Goldman Sachs.

Read more: http://www.bloomberg.com/news/articles/2018-03-30/here-s-why-trump-went-postal-on-amazon

China Now Has the Most Valuable AI Startup in the World

  • It becomes the world’s richest-valued private AI startup
  • The company drives China’s ambition to dominate global AI

SenseTime Group Ltd. has raised $600 million from Alibaba Group Holding Ltd. and other investors at a valuation of more than $3 billion, becoming the world’s most valuable artificial intelligence startup.

The company, which specializes in systems that analyze faces and images on an enormous scale, said it closed a Series C round in recent months in which Singaporean state investment firm Temasek Holdings Pte and retailer Suning.com Co. also participated. SenseTime didn’t outline individual investments, but Alibaba was said to have sought the biggest stake in the three-year-old startup.

With the deal, SenseTime has doubled its valuation in a few months. Backed by Qualcomm Inc., it underscores its status as one of a crop of homegrown firms spearheading Beijing’s ambition to become the leader in AI by 2030. And it’s a contributor to the world’s biggest system of surveillance: if you’ve ever been photographed with a Chinese-made phone or walked the streets of a Chinese city, chances are your face has been digitally crunched by SenseTime software built into more than 100 million mobile devices.

The latest financing will bankroll investments in parallel fields such as autonomous driving and augmented reality, cover the growing cost of AI talent and shore up its computing power. It’s developing a service code-named “Viper” to parse data from thousands of live camera feeds — a platform it hopes will prove invaluable in mass surveillance. And it’s already in talks to raise another round of funds and targeting a valuation of more than $4.5 billion, according to people familiar with the matter.

“We’re going to explore several new strategic directions and that’s why we shall spend more money on building infrastructure,” SenseTime co-founder Xu Li said in an interview. The company turned profitable in 2017 and wants to grow its workforce by a third to 2,000 by the end of this year. “For the past three years the average revenue growth has been 400 percent.”

Read more: China’s Plan for World Domination in AI Isn’t So Crazy After All

AI Supremacy

China houses some of the world's largest privately backed artificial intelligence startups

Source: CB Insights, Bloomberg

Note: Mobvoi's valuation is based on a 2015 investment

Alibaba, the e-commerce giant that’s also the country’s biggest cloud service provider, could help with its enormous infrastructure needs. SenseTime plans to build at least five supercomputers in top-tier cities over the coming year to drive Viper and other services. As envisioned, it streams thousands of live feeds into a single system that’re automatically processed and tagged, via devices from office face-scanners to ATMs and traffic cameras (so long as the resolution is high enough). The ultimate goal is to juggle 100,000 feeds simultaneously.

Police can use Viper to track everything from vice and accidents to suspects on blacklists. While civil libertarians say such systems have been used to track activists and oppress minorities in places like the Western region of Xinjiang, Xu believes the technology is essential and deployed in various ways by authorities around the world. China’s police forces and surveillance footage are also important sources of training data for SenseTime’s image recognition systems — it claims to work with 40 city authorities in the country.

“It will not affect privacy because only authorized persons can access it,” he said.

SenseTime claims some 400 clients and partners including Qualcomm, chipmaker Nvidia Corp. and smartphone maker Xiaomi Corp. For 2018, it’s projecting several billion yuan in revenues, Xu said. The startup’s expanding its reach across augmented reality, popularized by services like Snapchat that impose digital stickers and images on the real world. And it’s working with Honda Motor Co. to develop autonomous driving systems and is in talks to work with health institutions.

“In China there is an advantage in areas like facial recognition because of the privacy that exists in the U.S. and elsewhere in the EU, and some of the very best facial recognition technology in the world that I’ve seen is in China,” said Breyer Capital founder Jim Breyer, an indirect investor in SenseTime through IDG.

SenseTime is the largest, according to CB Insights, of a plethora of private AI outfits. Fellow facial-recognition startup Megvii Inc. raised $460 million last year, while smaller niche players from Yitu to Malong Technologies have also won funding. A key partner, Hangzhou Hikvision Digital Technology, is one of the world’s biggest suppliers of security cameras and developing its own competing AI technology.

Xu says its ability to work across wide datasets and diverse products sets it apart from rivals. “What is difficult is if you’re dealing with different video streams in different formats,” he said. While the company has long considered an initial public offering, Xu said those plans are on hold pending rules that facilitate tech listings in mainland China.

“We are still waiting for a fixed rule to come up with a new strategy,” he said. “Probably not this year.”

Read more: http://www.bloomberg.com/news/articles/2018-04-09/sensetime-snags-alibaba-funding-at-a-record-3-billion-valuation

YouTube Campus Shooting Ends With Suspect Dead, Three Hurt

  • Female suspect dies of self-inflicted wound, police chief says
  • Local hospitals report ready to receive patients from incident

A woman shot and injured at least three people before killing herself at Google’s YouTube headquarters in San Bruno, California, police said.

San Bruno Police Chief Ed Barberini said three victims were transported to local hospitals Tuesday afternoon. The woman found at the scene appeared to be dead of “a self-inflicted” gunshot wound, he said. No motive was given for the shooting.

Sepand Parhami, a YouTube software engineer, said he was having lunch on an outside patio when he heard shots and saw what looked to be a woman moving from a garage to the lobby of the building. He scrambled for the door and went inside as the woman started shooting, he said in an interview after the incident.

Police said they received multiple emergency calls beginning at 12:46 p.m. local time. Two minutes later officers arrived on the scene and encountered people escaping from the building. They began a search and found someone with gunshot wounds, according to Barberini. As the search continued they found a second person, a female, with what appeared to be a self-inflicted fatal gunshot wound. Police then found two more people with gunshot wounds, he said.

Zach Vorhies, a YouTube software engineer, said he saw a man on the ground with an apparent gunshot wound to the stomach. The victim was a heavyset man lying in the courtyard outside the building, Vorhies said in an interview. Vorhies said he then saw a police officer coming in with an assault rifle and ran out of the building through a rear exit.

Vadim Lavrusik, a product manager at YouTube, wrote earlier on Twitter that he and coworkers were barricaded inside a room at the 901 Cherry Ave. headquarters, before later tweeting “Safe. Got evacuated. Outside now.”

“Our security team has been working closely with authorities to evacuate the buildings and ensure the safety of employees in the area,” Alphabet Inc.’s Google said in a statement. “We advised all other employees in the Bay Area, and people with meetings scheduled, to stay away from the area, and that there is no need to take any action. We have provided employees a helpline.”

Zuckerberg San Francisco General Hospital, which has the city’s major trauma center, said they were treating three patients from the incident: a 36-year-old man in critical condition, a 32-year-old woman in serious condition and a 27-year-old woman in fair condition. The patients had multiple injuries, Andre Campbell, a hospital surgeon, told reporters. Campbell declined to specify the type of gunshot wounds suffered by the victims.

“Gun violence happens here everyday,” Campbell said. “We have a serious problem that we need to address. This is a real problem.”

The Stanford Health Care Center, which had been told to prepare for patients from the shooting, didn’t receive any victims to treat, a hospital spokeswoman said.

The FBI and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives responded to the scene. U.S. President Donald Trump, in a tweet, said he was briefed on the shooting and offered his “thoughts and prayers” for everyone involved.

San Bruno is a city 11 miles south of downtown San Francisco which is adjacent to San Francisco International Airport. The city has been the home of YouTube, the world’s largest online video site, for more than a decade. It’s the northern border of Silicon Valley and is also home to a major Walmart e-commerce office.

As the incident started, a Google employee at a nearby complex to the YouTube office said several police sirens were heard around the office and colleagues inside of the building were texting them updates. Videos and photos posted to Snapchat showed police officers running into the YouTube offices. People were also seen evacuating the offices in a line with their hands up in the air, according to the videos. Television reports showed police officers patting down people who had left the building to check for weapons.

Across the nation, the gun control debate has gained increasing attention from voters and legislators in the wake of the February mass shooting at a high school in Parkland, Florida. Congress recently bolstered the federal background check system for gun purchases as part of a larger spending bill and an additional report clarified that the Centers for Disease Control and Prevention could study the causes of gun violence. Additional measures have been passed at the state level.

An FBI study of active shooter incidents from 2000 to 2013 found that only six such cases, or 3.8 percent, involved a female shooter. Among the 160 shootings the study focused on, 23 occurred in business environments, and in 22 of those, the shooter worked for or had worked for the company targeted. Two of those shooters were women. In 40 percent of the total incidents studied, the shooter committed suicide.

Read more: http://www.bloomberg.com/news/articles/2018-04-03/police-investigating-reports-of-shooter-at-youtube-campus

Boeing Hit by Cyberattack, Says Jetliner Production Not Affected

Boeing Hit by Cyberattack, Says Jetliner Production Not Affected

Updated on

  • Planemaker says it ‘detected a limited intrusion of malware’
  • Seattle Times cites memo on problem ‘metastasizing rapidly’

Boeing Co. said it was hit by a cyberattack, following a Seattle Times report that some manufacturing equipment used to build its 787 Dreamliner and newest 777 wide-body jets could be crippled.

Aircraft production and deliveries aren’t affected, the Chicago-based planemaker said Wednesday. Some reports on the attack “are overstated and inaccurate,” said Linda Mills, a spokeswoman at Boeing’s commercial airplane division.

“Our cybersecurity operations center detected a limited intrusion of malware that affected a small number of systems,” Mills said in an emailed statement. “Remediations were applied and this is not a production and delivery issue.”

The assembly lines potentially affected by the software problem include those of Boeing’s 787 Dreamliner North Charleston, South Carolina, and the 777X Composite Wing Center, the Seattle Times report indicated.

“It is metastasizing rapidly out of North Charleston and I just heard 777 (automated spar assembly tools) may have gone down,” Boeing engineer Mike VanderWel wrote in a memo cited by the newspaper. VanderWel said he was concerned that the virus would hit equipment used to test jetliners before they roll out of the factory for their initial flight and potentially “spread to airplane software.”

The automated spar assembly refers to a state-of-the-art new tool at Boeing. Robotic machines there lay down rows of carbon-fiber tape over what will become the 108-foot-long spar that runs down the center of the wing for the 777X, an upgraded jetliner due to debut in 2020.

A cyberattack last year compromised companies such as FedEx Corp. and Nissan Motor Co. and crippled parts of the U.K.’s state-run National Health Service.

Boeing rose less than 1 percent to $321.55 in late trading.

Read more: https://www.bloomberg.com/news/articles/2018-03-28/boeing-hit-by-wannacry-ransomware-attack-seattle-times-says

Under Fire and Losing Trust, Facebook Plays the Victim

On Tuesday morning, Facebook employees were quiet even for Facebook employees, buried in the news on their phones as they shuffled to a meeting in one of the largest cafeterias at the company’s headquarters in Menlo Park, Calif. Mark Zuckerberg, their chief executive officer, had always told them Facebook Inc.’s growth was good for the world. Sheryl Sandberg, their chief operating officer, had preached the importance of openness. Neither appeared in the cafeteria on Tuesday. Instead, the company sent a lawyer.

The context: Reports in the  and thethe previous weekend that Cambridge Analytica, the political consulting firm that advised President Trump’s electoral campaign on digital advertising, had effectively stolen personal information from at least 50 million Americans. The data had come from Facebook, which had allowed an outside developer to take it before that developer shared it with Cambridge Analytica.

Facebook tried to get ahead of the story, announcing in a blog post that it was suspending the right-leaning consultancy and that it no longer allowed this kind of data sharing. Its users—a cohort that includes 2 billion or so people—weren’t ready to forgive. The phrase #DeleteFacebook flooded social media. (Among the outraged was WhatsApp co-founder Brian Acton, who in 2014 sold Facebook his messaging app for $19 billion.) Regulators in the U.S. and Europe announced they were opening inquiries. The company’s stock fell almost 9 percent from March 19-20, erasing about $50 billion of value.

QuicktakeFacebook and Cambridge Analytica

In most moments of crisis for the company, Zuckerberg or Sandberg have typically played damage-controller-in-chief. This time, the employees got all of 30 minutes with Paul Grewal, the deputy general counsel. the news reports were true—a blame-deflecting phrase that struck some as odd—Grewal told them, Facebook had been lied to. Cambridge Analytica should have deleted the outside developer’s data, but it didn’t. Reporters were calling this a breach, but it wasn’t, because users freely signed away their own data and that of their friends. The rules were clear, and Facebook followed them.

One employee asked the same question twice: Even if Facebook played by its own rules, and the developer followed policies at the time, did the company ever consider the ethics of what it was doing with user data? Grewal didn’t answer directly.

A Facebook spokesman declined to comment for this story, referring to a January post by Zuckerberg stating the CEO’s aim to get the company on a “better trajectory.” On Wednesday afternoon, Zuckerberg published a post promising to audit and restrict developer access to user data. “We have a responsibility to protect your data, and if we can't then we don't deserve to serve you,” he wrote. “I've been working to understand exactly what happened and how to make sure this doesn't happen again.”

Read more: Silicon Valley Has Failed to Protect Our Data. Here’s How to Fix It

Of course, Facebook has weathered complaints about violating user privacy since its earliest days without radically altering its practices. The first revolt came in 2006, when users protested that the service’s news feed was making public information that the users had intended to keep private. The news feed is now the company’s core service. In 2009, Facebook began making users’ posts, which had previously been private, public by default. That incident triggered anger, confusion, an investigation by the U.S. Federal Trade Commission, and, ultimately, a consent decree. In 2014, the company disclosed that it had tried to manipulate users’ emotions as part of an internal psychology experiment.

As bad as each of these may have seemed, Facebook users have generally been unfazed. They’ve used the service in ever-greater numbers for greater amounts of time, in effect trading privacy for product. They were willing to give more and more data to Facebook in exchange for the ability to connect with old high school friends, see pictures of their grandkids, read only the news that they agree with. The concept was dubbed Zuckerberg’s Law in 2008, when the CEO argued at a conference that each year people would share twice as much information about themselves as they had the year before. Notions of privacy were eroding, Zuckerberg said in 2010. “That social norm,” he added, “is just something that has evolved over time.”

For a while, the only thing Facebook needed to do to keep growing was to remove barriers to downloading and using the product. By 2014, it had reached almost half the world’s internet-connected population, and Zuckerberg realized the only way to expand further was to add people to the internet. While Facebook invested in internet subsidy programs in developing countries, it also went on an acquisition binge, buying up popular social software makers such as Instagram and WhatsApp.

These moves led to annual revenue growth of about 50 percent, with most of the increase coming from mobile ads, and converted the company’s Wall Street doubters. Last year, even as Facebook was forced to acknowledge that it had played a role in the Russian disinformation campaign during the election of Trump, investors pushed its stock price up 53 percent.

But the big blue app, as employees call Facebook’s namesake service, hasn’t changed much in years. The company has tweaked its algorithm, at times favoring or punishing clickbait-style news and viral videos, but most people use the service the same way they did two or three years ago. And some people are simply over it. In North America, Facebook’s daily user counts fell for the first time in the fourth quarter, and time spent on the site declined by 50 million hours a day. Facebook claimed that this was by design: Zuckerberg was focusing on helping users achieve “time well-spent,” with the news feed de-emphasizing viral flotsam.

The company positioned its new algorithmic initiative as a reaction to a study co-authored by one of its employees, arguing that while Facebook could be bad for users' mental health if they used it passively, more active use was actually good for you. The study could be viewed as a rare show of corporate transparency or a novel way to goose engagement.

Some of the moves, however, look even more desperate. Now, when people stop going on Facebook as often as usual, the company sends them frequent emails and text messages to encourage them to re-engage. It’s also getting more aggressive about suggesting what users should post.  According to some employees, the focus on time well-spent just means the company will point to metrics such as comments and personal updates as signs of growth, rather than genuinely improving the user experience.

In the long run, Facebook wants to make its product even more immersive and personal than it is now. It wants people to buy video chatting and personal assistant devices for their homes, and plans to announce those products this spring, say people familiar with the matter. It wants users to dive into Facebook-developed virtual worlds. It wants them to use Facebook Messenger to communicate with businesses, and to store their credit-card data on the app so they can use it to make payments to friends.

Employees have begun to worry that the company won’t be able to achieve its biggest goals if users decide that Facebook isn’t trustworthy enough to hold their data. At the meeting on Tuesday, the mood was especially grim. One employee told a reporter that the only time he’d felt as uncomfortable at work, or as responsible for the world’s problems, was the day Donald Trump won the presidency.

BOTTOM LINE – As its share price tanks and regulators circle, Facebook is struggling to answer basic questions about its next moves, even from its own employees.

Read more: http://www.bloomberg.com/news/articles/2018-03-21/under-fire-and-losing-trust-facebook-plays-the-victim

JPMorgan Brings Amazons Alexa to Wall Street Trading Floors

  • Voice-activated assistant can now send reports from analysts
  • Other firms such as New York Life using it to help employees

“Alexa, ask JPMorgan what the price target for Apple is.”

It’s a request that JPMorgan Chase & Co. institutional clients can now get quickly answered through Amazon.com Inc.’s ubiquitous voice-activated assistant. The bank and the e-commerce giant have partnered to provide JPMorgan’s Wall Street users with another way to access its research. Alexa is able to send analysts’ reports and related queries, and the bank is testing other features, like providing prices on bonds or swaps, according to David Hudson, global head of markets execution for the New York-based bank.

Voice assistants are “clearly becoming something people are habituated to in their lives,” Hudson said. “It’s about taking information that’s somewhere in the bank, that someone has to generally go and look for, or which is time-consuming or requires authentication to get, and putting that to you in another channel.”

As clients’ habits evolve, firms have been finding ways to adapt popular retail technologies for the business world. While JPMorgan is one of the first to push the Alexa virtual assistant to institutional shops, other banks have been using the service in their consumer operations. And New York Life Insurance Co. is among financial companies building programs that use Alexa as a tool for employees.

12,000 Agents

Customers are becoming increasingly willing to use voice assistants to monitor accounts, according to a survey conducted last year by Bain & Co. While 6 percent of U.S. respondents now use the technology, 27 percent are open to it, according to the consultant.

Capital One Financial Corp. was the first bank to allow customers to manage credit card and bank accounts through the voice assistant, and the lender has slowly expanded its Alexa service, allowing people to ask questions like how much they spent on Amazon last week.

New York Life will start rolling out Alexa features to its 12,000 agents later this year to help them get quick details on policies and prepare for meetings, said Mark Madgett, who leads the insurer’s field force of agents. That means the agents can ask Alexa to figure out how much life insurance a customer has or the value of those policies, or to catch them up on the latest products the firm is offering, he said.

“This is a very complicated business,” Madgett said. “When I started 32 years ago, I had five products that I could help solve problems with. Today there are thousands of permutations around financial solutions.”

New ’Skill’

JPMorgan’s automated service, known in Amazon verbiage as a “skill,” is the latest shared project for the biggest U.S. bank and the world’s largest online retailer. Amazon already leases cloud-computing power to JPMorgan and has asked the bank to compete in creating new products including a small-business credit card for its customers. The companies are also collaborating on a health-care venture.

Read more: JPMorgan-Amazon health venture goes beyond squeezing middlemen

JPMorgan’s Alexa project started last year as part of an internal competition to foster innovation. The bank first opened up data in its research group and added feeds from other departments, including banking and custody and fund services — capabilities now being tested internally. If the automated service takes off, it should free the firm’s salespeople from having to answer routine queries.

JPMorgan has seen that clients are open to new ways of interacting with technology. Not long after the bank created mobile apps for its trading business, it was recording large trades, including a $400 million currency bet last year. So allowing Alexa users to access JPMorgan data from wherever they choose to work — home, office or on the go — makes sense.

The next step is enabling institutional clients to act on the information they’re getting. In the not-so-distant future, Wall Street traders could routinely use Alexa to execute trades, according to Hudson. But the bank needs to do more work on client authentication and other security measures to prevent errant trades before that happens, he said.

“In the open-office environment, if you leave an Alexa on your desk plugged into an Amazon account, you might find a TV delivered tomorrow as a practical joke,” Hudson said.

Read more: http://www.bloomberg.com/news/articles/2018-03-26/jpmorgan-brings-amazon-s-alexa-to-wall-street-trading-floors

I made Steve Bannons psychological warfare tool: meet the data war whistleblower

Christopher Wylie goes on the record to discuss his role in hijacking the profiles of millions of Facebook users in order to target the US electorate

The first time I met Christopher Wylie, he didnt yet have pink hair. That comes later. As does his mission to rewind time. To put the genie back in the bottle.

By the time I met him in person, Id already been talking to him on a daily basis for hours at a time. On the phone, he was clever, funny, bitchy, profound, intellectually ravenous, compelling. A master storyteller. A politicker. A data science nerd.

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Cambridge Analytica whistleblower: ‘We spent $1m harvesting millions of Facebook profiles’ video

Two months later, when he arrived in London from Canada, he was all those things in the flesh. And yet the flesh was impossibly young. He was 27 then (hes 28 now), a fact that has always seemed glaringly at odds with what he has done. He may have played a pivotal role in the momentous political upheavals of 2016. At the very least, he played a consequential role. At 24, he came up with an idea that led to the foundation of a company called Cambridge Analytica, a data analytics firm that went on to claim a major role in the Leave campaign for Britains EU membership referendum, and later became a key figure in digital operations during Donald Trumps election campaign.

Or, as Wylie describes it, he was the gay Canadian vegan who somehow ended up creating Steve Bannons psychological warfare mindfuck tool.

In 2014, Steve Bannon then executive chairman of the alt-right news network Breitbart was Wylies boss. And Robert Mercer, the secretive US hedge-fund billionaire and Republican donor, was Cambridge Analyticas investor. And the idea they bought into was to bring big data and social media to an established military methodology information operations then turn it on the US electorate.

It was Wylie who came up with that idea and oversaw its realisation. And it was Wylie who, last spring, became my source. In May 2017, I wrote an article headlined The great British Brexit robbery, which set out a skein of threads that linked Brexit to Trump to Russia. Wylie was one of a handful of individuals who provided the evidence behind it. I found him, via another Cambridge Analytica ex-employee, lying low in Canada: guilty, brooding, indignant, confused. I havent talked about this to anyone, he said at the time. And then he couldnt stop talking.

Explainer embed

By that time, Steve Bannon had become Trumps chief strategist. Cambridge Analyticas parent company, SCL, had won contracts with the US State Department and was pitching to the Pentagon, and Wylie was genuinely freaked out. Its insane, he told me one night. The company has created psychological profiles of 230 million Americans. And now they want to work with the Pentagon? Its like Nixon on steroids.

He ended up showing me a tranche of documents that laid out the secret workings behind Cambridge Analytica. And in the months following publication of my article in May,it was revealed that the company had reached out to WikiLeaks to help distribute Hillary Clintons stolen emails in 2016. And then we watched as it became a subject of special counsel Robert Muellers investigation into possible Russian collusion in the US election.

The Observer also received the first of three letters from Cambridge Analytica threatening to sue Guardian News and Media for defamation. We are still only just starting to understand the maelstrom of forces that came together to create the conditions for what Mueller confirmed last month was information warfare. But Wylie offers a unique, worms-eye view of the events of 2016. Of how Facebook was hijacked, repurposed to become a theatre of war: how it became a launchpad for what seems to be an extraordinary attack on the USs democratic process.

Wylie oversaw what may have been the first critical breach. Aged 24, while studying for a PhD in fashion trend forecasting, he came up with a plan to harvest the Facebook profiles of millions of people in the US, and to use their private and personal information to create sophisticated psychological and political profiles. And then target them with political ads designed to work on their particular psychological makeup.

We broke Facebook, he says.

And he did it on behalf of his new boss, Steve Bannon.

Is it fair to say you hacked Facebook? I ask him one night.

He hesitates. Ill point out that I assumed it was entirely legal and above board.

Last month, Facebooks UK director of policy, Simon Milner, told British MPs on a select committee inquiry into fake news, chaired by Conservative MP Damian Collins, that Cambridge Analytica did not have Facebook data. The official Hansard extract reads:

Christian Matheson (MP for Chester): Have you ever passed any user information over to Cambridge Analytica or any of its associated companies?

Simon Milner: No.

Matheson: But they do hold a large chunk of Facebooks user data, dont they?

Milner: No. They may have lots of data, but it will not be Facebook user data. It may be data about people who are on Facebook that they have gathered themselves, but it is not data that we have provided.

Alexander
Alexander Nix, Cambridge Analytica CEO. Photograph: The Washington Post/Getty Images

Two weeks later, on 27 February, as part of the same parliamentary inquiry, Rebecca Pow, MP for Taunton Deane, asked Cambridge Analyticas CEO, Alexander Nix: Does any of the data come from Facebook? Nix replied: We do not work with Facebook data and we do not have Facebook data.

And through it all, Wylie and I, plus a handful of editors and a small, international group of academics and researchers, have known that at least in 2014 that certainly wasnt the case, because Wylie has the paper trail. In our first phone call, he told me he had the receipts, invoices, emails, legal letters records that showed how, between June and August 2014, the profiles of more than 50 million Facebook users had been harvested. Most damning of all, he had a letter from Facebooks own lawyers admitting that Cambridge Analytica had acquired the data illegitimately.

Going public involves an enormous amount of risk. Wylie is breaking a non-disclosure agreement and risks being sued. He is breaking the confidence of Steve Bannon and Robert Mercer.

Its taken a rollercoaster of a year to help get Wylie to a place where its possible for him to finally come forward. A year in which Cambridge Analytica has been the subject of investigations on both sides of the Atlantic Robert Muellers in the US, and separate inquiries by the Electoral Commission and the Information Commissioners Office in the UK, both triggered in February 2017, after the Observers first article in this investigation.

It has been a year, too, in which Wylie has been trying his best to rewind to undo events that he set in motion. Earlier this month, he submitted a dossier of evidence to the Information Commissioners Office and the National Crime Agencys cybercrime unit. He is now in a position to go on the record: the data nerd who came in from the cold.

There are many points where this story could begin. One is in 2012, when Wylie was 21 and working for the Liberal Democrats in the UK, then in government as junior coalition partners. His career trajectory has been, like most aspects of his life so far, extraordinary, preposterous, implausible.

Profile

Cambridge Analytica: the key players

Alexander Nix, CEO

An Old Etonian with a degree from Manchester University, Nix, 42, worked as a financial analyst in Mexico and the UK before joining SCL, a strategic communications firm, in 2003. From 2007 he took over the companys elections division, and claims to have worked on 260 campaigns globally. He set up Cambridge Analytica to work in America, with investment from RobertMercer.

Aleksandr Kogan, data miner

Aleksandr Kogan was born in Moldova and lived in Moscow until the age of seven, then moved with his family to the US, where he became a naturalised citizen. He studied at the University of California, Berkeley, and got his PhD at the University of Hong Kong before joining Cambridge as a lecturer in psychology and expert in social media psychometrics. He set up Global Science Research (GSR) to carry out CAs data research. While at Cambridge he accepted a position at St Petersburg State University, and also took Russian government grants for research. He changed his name to Spectre when he married, but later reverted to Kogan.

Steve Bannon, former board member

A former investment banker turned alt-right media svengali, Steve Bannon was boss at website Breitbart when he met Christopher Wylie and Nix and advised Robert Mercer to invest in political data research by setting up CA. In August 2016 he became Donald Trumps campaign CEO. Bannon encouraged the reality TV star to embrace the populist, economic nationalist agenda that would carry him into the White House. That earned Bannon the post of chief strategist to the president and for a while he was arguably the second most powerful man in America. By August 2017 his relationship with Trump had soured and he was out.

Robert Mercer, investor

Robert Mercer, 71, is a computer scientist and hedge fund billionaire, who used his fortune to become one of the most influential men in US politics as a top Republican donor. An AI expert, he made a fortune with quantitative trading pioneers Renaissance Technologies, then built a $60m war chest to back conservative causes by using an offshore investment vehicle to avoid US tax.

Rebekah Mercer, investor

Rebekah Mercer has a maths degree from Stanford, and worked as a trader, but her influence comes primarily from her fathers billions. The fortysomething, the second of Mercers three daughters, heads up the family foundation which channels money to rightwing groups. The conservative megadonors backed Breitbart, Bannon and, most influentially, poured millions into Trumps presidential campaign.

Wylie grew up in British Columbia and as a teenager he was diagnosed with ADHD and dyslexia. He left school at 16 without a single qualification. Yet at 17, he was working in the office of the leader of the Canadian opposition; at 18, he went to learn all things data from Obamas national director of targeting, which he then introduced to Canada for the Liberal party. At 19, he taught himself to code, and in 2010, age 20, he came to London to study law at the London School of Economics.

Politics is like the mob, though, he says. You never really leave. I got a call from the Lib Dems. They wanted to upgrade their databases and voter targeting. So, I combined working for them with studying for my degree.

Politics is also where he feels most comfortable. He hated school, but as an intern in the Canadian parliament he discovered a world where he could talk to adults and they would listen. He was the kid who did the internet stuff and within a year he was working for the leader of the opposition.

Hes one of the brightest people you will ever meet, a senior politician whos known Wylie since he was 20 told me. Sometimes thats a blessing and sometimes a curse.

Meanwhile, at Cambridge Universitys Psychometrics Centre, two psychologists, Michal Kosinski and David Stillwell, were experimenting with a way of studying personality by quantifying it.

Starting in 2007,Stillwell, while a student, had devised various apps for Facebook, one of which, a personality quiz called myPersonality, had gone viral. Users were scored on big five personality traits Openness, Conscientiousness, Extroversion, Agreeableness and Neuroticism and in exchange, 40% of them consented to give him access to their Facebook profiles. Suddenly, there was a way of measuring personality traits across the population and correlating scores against Facebook likes across millions of people.

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Examples, above and below, of the visual messages trialled by GSRs online profiling test. Respondents were asked: How important should this message be to all Americans?

The research was original, groundbreaking and had obvious possibilities. They had a lot of approaches from the security services, a member of the centre told me. There was one called You Are What You Like and it was demonstrated to the intelligence services. And it showed these odd patterns; that, for example, people who liked I hate Israel on Facebook also tended to like Nike shoes and KitKats.

There are agencies that fund research on behalf of the intelligence services. And they were all over this research. That one was nicknamed Operation KitKat.

The defence and military establishment were the first to see the potential of the research. Boeing, a major US defence contractor, funded Kosinskis PhD and Darpa, the US governments secretive Defense Advanced Research Projects Agency, is cited in at least two academic papers supporting Kosinskis work.

But when, in 2013, the first major paper was published, others saw this potential too, including Wylie. He had finished his degree and had started his PhD in fashion forecasting, and was thinking about the Lib Dems. It is fair to say that he didnt have a clue what he was walking into.

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I wanted to know why the Lib Dems sucked at winning elections when they used to run the country up to the end of the 19th century, Wylie explains. And I began looking at consumer and demographic data to see what united Lib Dem voters, because apart from bits of Wales and the Shetlands its weird, disparate regions. And what I found is there were no strong correlations. There was no signal in the data.

And then I came across a paper about how personality traits could be a precursor to political behaviour, and it suddenly made sense. Liberalism is correlated with high openness and low conscientiousness, and when you think of Lib Dems theyre absent-minded professors and hippies. Theyre the early adopters theyre highly open to new ideas. And it just clicked all of a sudden.

Here was a way for the party to identify potential new voters. The only problem was that the Lib Dems werent interested.

I did this presentation at which I told them they would lose half their 57 seats, and they were like: Why are you so pessimistic? They actually lost all but eight of their seats, FYI.

Another Lib Dem connection introduced Wylie to a company called SCL Group, one of whose subsidiaries, SCL Elections, would go on to create Cambridge Analytica (an incorporated venture between SCL Elections and Robert Mercer, funded by the latter). For all intents and purposes, SCL/Cambridge Analytica are one and the same.

Alexander Nix, then CEO of SCL Elections, made Wylie an offer he couldnt resist. He said: Well give you total freedom. Experiment. Come and test out all your crazy ideas.

An
Another example of the visual messages trialled by GSRs online profiling test.

In the history of bad ideas, this turned out to be one of the worst. The job was research director across the SCL group, a private contractor that has both defence and elections operations. Its defence arm was a contractor to the UKs Ministry of Defence and the USs Department of Defense, among others. Its expertise was in psychological operations or psyops changing peoples minds not through persuasion but through informational dominance, a set of techniques that includes rumour, disinformation and fake news.

SCL Elections had used a similar suite of tools in more than 200 elections around the world, mostly in undeveloped democracies that Wylie would come to realise were unequipped to defend themselves.

Wylie holds a British Tier 1 Exceptional Talent visa a UK work visa given to just 200 people a year. He was working inside government (with the Lib Dems) as a political strategist with advanced data science skills. But no one, least of all him, could have predicted what came next. When he turned up at SCLs offices in Mayfair, he had no clue that he was walking into the middle of a nexus of defence and intelligence projects, private contractors and cutting-edge cyberweaponry.

The thing I think about all the time is, what if Id taken a job at Deloitte instead? They offered me one. I just think if Id taken literally any other job, Cambridge Analytica wouldnt exist. You have no idea how much I brood on this.

A few months later, in autumn 2013, Wylie met Steve Bannon. At the time, he was editor-in-chief of Breitbart, which he had brought to Britain to support his friend Nigel Farage in his mission to take Britain out of the European Union.

What was he like?

Smart, says Wylie. Interesting. Really interested in ideas. Hes the only straight man Ive ever talked to about intersectional feminist theory. He saw its relevance straightaway to the oppressions that conservative, young white men feel.

Wylie meeting Bannon was the moment petrol was poured on a flickering flame. Wylie lives for ideas. He speaks 19 to the dozen for hours at a time. He had a theory to prove. And at the time, this was a purely intellectual problem. Politics was like fashion, he told Bannon.

[Bannon] got it immediately. He believes in the whole Andrew Breitbart doctrine that politics is downstream from culture, so to change politics you need to change culture. And fashion trends are a useful proxy for that. Trump is like a pair of Uggs, or Crocs, basically. So how do you get from people thinking Ugh. Totally ugly to the moment when everyone is wearing them? That was the inflection point he was looking for.

But Wylie wasnt just talking about fashion. He had recently been exposed to a new discipline: information operations, which ranks alongside land, sea, air and space in the US militarys doctrine of the five-dimensional battle space. His brief ranged across the SCL Group the British government has paid SCL to conduct counter-extremism operations in the Middle East, and the US Department of Defense has contracted it to work in Afghanistan.

I tell him that another former employee described the firm as MI6 for hire, and Id never quite understood it.

Its like dirty MI6 because youre not constrained. Theres no having to go to a judge to apply for permission. Its normal for a market research company to amass data on domestic populations. And if youre working in some country and theres an auxiliary benefit to a current client with aligned interests, well thats just a bonus.

When I ask how Bannon even found SCL, Wylie tells me what sounds like a tall tale, though its one he can back up with an email about how Mark Block, a veteran Republican strategist, happened to sit next to a cyberwarfare expert for the US air force on a plane. And the cyberwarfare guy is like, Oh, you should meet SCL. They do cyberwarfare for elections.

U.S.
Steve Bannon: He loved the gays, says Wylie. He saw us as early adopters. Photograph: Tony Gentile/Reuters

It was Bannon who took this idea to the Mercers: Robert Mercer the co-CEO of the hedge fund Renaissance Technologies, who used his billions to pursue a rightwing agenda, donating to Republican causes and supporting Republican candidates and his daughter Rebekah.

Nix and Wylie flew to New York to meet the Mercers in Rebekahs Manhattan apartment.

She loved me. She was like, Oh we need more of your type on our side!

Your type?

The gays. She loved the gays. So did Steve [Bannon]. He saw us as early adopters. He figured, if you can get the gays on board, everyone else will follow. Its why he was so into the whole Milo [Yiannopoulos] thing.

Robert Mercer was a pioneer in AI and machine translation. He helped invent algorithmic trading which replaced hedge fund managers with computer programs and he listened to Wylies pitch. It was for a new kind of political message-targeting based on an influential and groundbreaking 2014 paper researched at Cambridges Psychometrics Centre, called: Computer-based personality judgments are more accurate than those made by humans.

In politics, the money man is usually the dumbest person in the room. Whereas its the opposite way around with Mercer, says Wylie. He said very little, but he really listened. He wanted to understand the science. And he wanted proof that it worked.

And to do that, Wylie needed data.

How Cambridge Analytica acquired the data has been the subject of internal reviews at Cambridge University, of many news articles and much speculation and rumour.

When Nix was interviewed by MPs last month, Damian Collins asked him:

Does any of your data come from Global Science Research company?

Nix: GSR?

Collins: Yes.

Nix: We had a relationship with GSR. They did some research for us back in 2014. That research proved to be fruitless and so the answer is no.

Collins: They have not supplied you with data or information?

Nix: No.

Collins: Your datasets are not based on information you have received from them?

Nix: No.

Collins: At all?

Nix: At all.

The problem with Nixs response to Collins is that Wylie has a copy of an executed contract, dated 4 June 2014, which confirms that SCL, the parent company of Cambridge Analytica, entered into a commercial arrangement with a company called Global Science Research (GSR), owned by Cambridge-based academic Aleksandr Kogan, specifically premised on the harvesting and processing of Facebook data, so that it could be matched to personality traits and voter rolls.

He has receipts showing that Cambridge Analytica spent $7m to amass this data, about $1m of it with GSR. He has the bank records and wire transfers. Emails reveal Wylie first negotiated with Michal Kosinski, one of the co-authors of the original myPersonality research paper, to use the myPersonality database. But when negotiations broke down, another psychologist, Aleksandr Kogan, offered a solution that many of his colleagues considered unethical. He offered to replicate Kosinski and Stilwells research and cut them out of the deal. For Wylie it seemed a perfect solution. Kosinski was asking for $500,000 for the IP but Kogan said he could replicate it and just harvest his own set of data. (Kosinski says the fee was to fund further research.)

Dr
An unethical solution? Dr Aleksandr Kogan Photograph: alex kogan

Kogan then set up GSR to do the work, and proposed to Wylie they use the data to set up an interdisciplinary institute working across the social sciences. What happened to that idea, I ask Wylie. It never happened. I dont know why. Thats one of the things that upsets me the most.

It was Bannons interest in culture as war that ignited Wylies intellectual concept. But it was Robert Mercers millions that created a firestorm. Kogan was able to throw money at the hard problem of acquiring personal data: he advertised for people who were willing to be paid to take a personality quiz on Amazons Mechanical Turk and Qualtrics. At the end of which Kogans app, called thisismydigitallife, gave him permission to access their Facebook profiles. And not just theirs, but their friends too. On average, each seeder the people who had taken the personality test, around 320,000 in total unwittingly gave access to at least 160 other peoples profiles, none of whom would have known or had reason to suspect.

What the email correspondence between Cambridge Analytica employees and Kogan shows is that Kogan had collected millions of profiles in a matter of weeks. But neither Wylie nor anyone else at Cambridge Analytica had checked that it was legal. It certainly wasnt authorised. Kogan did have permission to pull Facebook data, but for academic purposes only. Whats more, under British data protection laws, its illegal for personal data to be sold to a third party without consent.

Facebook could see it was happening, says Wylie. Their security protocols were triggered because Kogans apps were pulling this enormous amount of data, but apparently Kogan told them it was for academic use. So they were like, Fine.

Kogan maintains that everything he did was legal and he had a close working relationship with Facebook, which had granted him permission for his apps.

Cambridge Analytica had its data. This was the foundation of everything it did next how it extracted psychological insights from the seeders and then built an algorithm to profile millions more.

For more than a year, the reporting around what Cambridge Analytica did or didnt do for Trump has revolved around the question of psychographics, but Wylie points out: Everything was built on the back of that data. The models, the algorithm. Everything. Why wouldnt you use it in your biggest campaign ever?

In December 2015, the Guardians Harry Davies published the first report about Cambridge Analytica acquiring Facebook data and using it to support Ted Cruz in his campaign to be the US Republican candidate. But it wasnt until many months later that Facebook took action. And then, all they did was write a letter. In August 2016, shortly before the US election, and two years after the breach took place, Facebooks lawyers wrote to Wylie, who left Cambridge Analytica in 2014, and told him the data had been illicitly obtained and that GSR was not authorised to share or sell it. They said it must be deleted immediately.

Christopher
Christopher Wylie: Its like Nixon on steroids

I already had. But literally all I had to do was tick a box and sign it and send it back, and that was it, says Wylie. Facebook made zero effort to get the data back.

There were multiple copies of it. It had been emailed in unencrypted files.

Cambridge Analytica rejected all allegations the Observer put to them.

Dr Kogan who later changed his name to Dr Spectre, but has subsequently changed it back to Dr Kogan is still a faculty member at Cambridge University, a senior research associate. But what his fellow academics didnt know until Kogan revealed it in emails to the Observer (although Cambridge University says that Kogan told the head of the psychology department), is that he is also an associate professor at St Petersburg University. Further research revealed that hes received grants from the Russian government to research Stress, health and psychological wellbeing in social networks. The opportunity came about on a trip to the city to visit friends and family, he said.

There are other dramatic documents in Wylies stash, including a pitch made by Cambridge Analytica to Lukoil, Russias second biggest oil producer. In an email dated 17 July 2014, about the US presidential primaries, Nix wrote to Wylie: We have been asked to write a memo to Lukoil (the Russian oil and gas company) to explain to them how our services are going to apply to the petroleum business. Nix said that they understand behavioural microtargeting in the context of elections but that they were failing to make the connection between voters and their consumers. The work, he said, would be shared with the CEO of the business, a former Soviet oil minister and associate of Putin, Vagit Alekperov.

It didnt make any sense to me, says Wylie. I didnt understand either the email or the pitch presentation we did. Why would a Russian oil company want to target information on American voters?

Muellers investigation traces the first stages of the Russian operation to disrupt the 2016 US election back to 2014, when the Russian state made what appears to be its first concerted efforts to harness the power of Americas social media platforms, including Facebook. And it was in late summer of the same year that Cambridge Analytica presented the Russian oil company with an outline of its datasets, capabilities and methodology. The presentation had little to do with consumers. Instead, documents show it focused on election disruption techniques. The first slide illustrates how a rumour campaign spread fear in the 2007 Nigerian election in which the company worked by spreading the idea that the election would be rigged. The final slide, branded with Lukoils logo and that of SCL Group and SCL Elections, headlines its deliverables: psychographic messaging.

https://www.theguardian.com/news/2018/mar/17/data-war-whistleblower-christopher-wylie-faceook-nix-bannon-trump

Apple Plans Giant High-End iPhone, Lower-Priced Model

Apple Inc. is preparing to release a trio of new smartphones later this year: the largest iPhone ever, an upgraded handset the same size as the current iPhone X and a less expensive model with some of the flagship phone’s key features.

With the new lineup, Apple wants to appeal to the growing number of consumers who crave the multitasking attributes of so-called phablets while also catering to those looking for a more affordable version of the iPhone X, according to people familiar with the products.

Apple, which is already running production tests with suppliers, is expected to announce the new phones this fall. The plans could still change, say the people, who requested anonymity to discuss internal planning.

Despite months of breathless hype, the iPhone X hasn’t sold as well as expected since its debut last year. Apple sold 77.3 million iPhones in the final quarter of 2017, below analysts’ projections of 80.2 million units. Some consumers were turned off by the iPhone X’s $1,000 price despite liking the design but wanted something more cutting-edge than the cheaper iPhone 8. With its next lineup, Apple is seeking to rekindle sales by offering a model for everyone.

“This is a big deal,” says Gene Munster, a co-founder of Loup Ventures and a long-time Apple watcher. “When you have a measurable upgrade in screen size, people go to update their phone in droves. We saw that with the iPhone 6, and we think this is setting up to be a similar step up in growth.”

Munster predicts a supercycle — which he defines as upgrades by 10 percent or more of Apple’s existing iPhone customers. “The market that will see the biggest jump in sales is likely Asia,” he says. “That market has many single-device consumers, and they love big phones.”

An Apple spokeswoman declined to comment. The shares gained 2.1 percent to $179.18 at 2:16 p.m. in New York.

Read more: How Samsung’s new Galaxy S9 compares to the iPhone X

With a screen close to 6.5 inches, Apple’s big new handset will be one of the largest mainstream smartphones on the market. While the body of the phone will be about the same size as the iPhone 8 Plus, the screen will be about an inch larger thanks to the edge-to-edge design used in the iPhone X. (Apple is unlikely to refer to the phone as a phablet, a term popularized by Samsung.)

The larger screen should especially appeal to business users, letting them write emails and manage spreadsheets on a screen about as big as a small tablet. Like the iPhone 8 Plus, the new handset will probably enable split-screen modes for certain apps. Still, the larger phone could cannibalize iPad sales, a category that recently started growing again.

The big phone is code named D33, a person familiar with its development says, and at least some prototypes include a screen resolution of 1242 x 2688. That would make the screen about as sharp as the one on the 5.8-inch iPhone X. Apple also plans to use OLED technology, the same, more expensive type of screen in the regular iPhone X.

Like the iPhone X, the larger model will include a Face ID scanner that unlocks the device and enables payments. Apple is also preparing an update to the regular-sized iPhone X that is internally dubbed D32, people familiar with the product said. Both of these phones are expected to use next-generation A12 processors and will continue to include stainless steel edges, they say, and will be Apple’s high-end smartphone offerings.

Apple is considering a gold color option for the update to the iPhone X and the larger model. The company tried to develop gold for the current X handset, but abandoned it because of production problems. All new iPhones since the 5s came in gold, including the iPhone 8. The gold option is especially appealing to consumers in Asia and may help boost sales in the region. Still, Apple may ultimately decide not to proceed with the color.

In at least some regions, Apple is considering offering a dual-SIM card option for the larger model. That would let people use their phones in countries with different carrier plans without having to swap out cards. Such a feature has been growing in importance and popularity, especially in Europe and Asia where business people routinely visit multiple countries.

Apple hasn’t made a final decision on including the feature and could choose to wait for E-SIM technology, which will connect phones to multiple networks without the need for a removable chip. Apple has wanted to offer E-SIM technology (it already exists in the iPad and Apple Watch), but some carriers are resistant to including it in iPhones, and Apple needs their support. A dual-SIM capability would provide a compromise.

The phones will have an updated operating system, probably called iOS 12 and code named Peace, which will include upgraded augmented reality capabilities, deeper integration of the Siri digital assistant, digital health monitoring and the ability to use Animojis in FaceTime.

Apple’s decision to also build a cheaper phone is an acknowledgment that the current entry-level 8 models too closely resemble the iPhone 6 introduced back in 2014. With their thick bezels and lack of edge-to-edge screens, they seem dated next to the iPhone X and the latest Samsung devices. The new lower-cost model will feature the same edge-to-edge screen as the iPhone X as well as Face ID instead of a fingerprint sensor.

“It’s good that they’re rounding out the product line” with a less expensive phone, Munster says. But he doesn’t think it will have a measurable impact on demand because many consumers will want the bigger model.

To keep costs down, the cheaper phone will use LCD screen technology similar to the type employed in the iPhone 8. It will also have aluminum edges and a glass back like the iPhone 8, not the flashier stainless steel used in the iPhone X.

Apple has tried selling cheaper phones in the past with poor results. In 2013, the company debuted the iPhone 5c, which had a polycarbonate body and came in various colors. Consumers quickly discovered that for a mere $100 more they could buy a 5s, which had an aluminum body, a slow-motion video camera and a fingerprint scanner. Apple soon discontinued the 5c.

For more on the iPhone, check out the podcast:

This time, the company is trying something different: using a cheaper body but including the features — Face ID and an edge-to-edge screen — that consumers most prize.

    Read more: http://www.bloomberg.com/news/articles/2018-02-26/apple-is-said-to-plan-giant-high-end-iphone-lower-priced-model

    Phone-addicted teens arent as happy as those who play sports and hang out IRL, new study suggests

    To no parent’s surprise, too much smartphone use makes teens unhappy.

    So says a new study from San Diego State University, which pulled data from over one million 8th-, 10th-, and 12th-graders in the U.S. showing teens who spent more time on social media, gaming, texting and video-chatting on their phones were not as happy as those who played sports, went outside and interacted with real human beings.

    But is it the screen time bringing them down or are sadder teens more likely to insulate themselves in a virtual world? Lead author of the study and professor of psychology Jean M. Twenge believes it’s the phone that contributes to making them unhappy, not the other way around.

    “Although this study can’t show causation, several other studies have shown that more social media use leads to unhappiness, but unhappiness does not lead to more social media use,” Twenge said.

    Though abstinence doesn’t seem to fix the problem, either, as noted in the study, there’s something to Twenge’s theory. Another recent study by the U.S. Centers for Disease Control and Prevention and also lead by Twenge, found a spike in depression and suicide among teen girls increased the more time they spent on their phones.

    That’s alarming, especially considering the age in which kids get smartphones has continued to climb lower — dropping from 12 in 2012 to 10.3 years in 2016.

    Twenge has been studying teen behavior since the early 90’s and has been on the forefront of research suggesting an abrupt change in behavior and emotional states of teenagers due to smartphone use. She says there’s been a dramatic shift starting in 2012 when younger and younger kids starting getting more screen time.

    Researchers found more of the same while sifting through the data for this study. Teenagers’ life satisfaction, self-esteem and happiness plummeted after 2012.

    To back up that work, Twenge’s previous studies suggest kids who spend at least four or five hours on their phone increase their risk factor for suicide by a whopping 71 percent, regardless of whether it was cat videos or something else. It was the time spent on the device, not the content, that mattered most.

    “By far the largest change in teens’ lives between 2012 and 2016 was the increase in the amount of time they spent on digital media, and the subsequent decline in in-person social activities and sleep,” Twenge said. “The key to digital media use and happiness is limited use.”

    She suggests teens aim to spend no more than two hours a day on digital media, exercise more and try to hang out with friends face-to-face to increase happiness — all things adults could probably use more of as well.

    Read more: https://techcrunch.com/2018/01/23/phone-addicted-teens-arent-as-happy-as-those-who-play-sports-and-hang-out-irl-new-study-suggests/

    Spinal-Cord Implants to Numb Pain Emerge as Alternative to Pills

    For millions of Americans suffering from debilitating nerve pain, a once-overlooked option has emerged as an alternative to high doses of opioids: implanted medical devices using electricity to counteract pain signals the same way noise-canceling headphones work against sound. 

    The approach, called neuromodulation, has been a godsend for Linda Landy, who was a 42-year-old runner when a foot surgery went awry in 2008. She was diagnosed with complex regional pain syndrome, a condition dubbed the suicide disease by doctors: The pain is so unrelenting that many people take their own lives.

    Linda Landy and family

    Last November, Landy underwent surgery to get an Abbott Laboratories device that stimulates the dorsal root ganglion, a spot in the spine that was the pain conduit for her damaged nerves. A year after getting her implant, called DRG, she’s cut back drastically on pain pills.

    “The DRG doesn’t take the pain completely away, but it changes it into something I can live with,” said Landy, a mother of three in Fort Worth, Texas. She’s now now able to walk again and travel by plane without using a wheelchair. “It sounds minor, but it’s really huge.”

    Crackdown on Opioids

    Recent innovations from global device makers like Abbott to smaller specialists such as Nevro Corp. made the implants more powerful and effective. Combined with a national crackdown on narcotics and wanton pain pill prescriptions, they are spurring demand for implants.

    The market may double to $4 billion in 10 years, up from about $1.8 billion in the U.S. and $500 million in Europe today, according to health-care research firm Decisions Resources Group.

    “There was a big stigma around this when it first came out,” said Paul Desormeaux, a Decisions Resources analyst in Toronto. “The idea of sending an electrical signal through your nervous system was a little daunting, but as clinical data has come out and physicians have been able to prove its safety, there has been a big change in the general attitude.”

    Read More: Millions Face Pain, Withdrawal as Opioid Prescriptions Plummet

    At least 50 million adults in the U.S. suffer from chronic pain, according to the Centers for Disease Control and Prevention. Only a fraction of them would benefit from spinal-cord stimulation — about 3.6 million, according to Decisions Resources — but those are patients who are often given the highest doses of narcotics. They include people with nerve damage stemming from conditions like diabetic neuropathy and shingles, as well as surgeries.

    “There is no question we are reducing the risk of opioid dependence by implanting these devices,” said Timothy Deer, president of the Spine and Nerve Centers of the Virginias in Charleston, West Virginia, a hotbed of the opioid epidemic. “If we get someone before they are placed on opioids, 95 percent of the time we can reduce their need to ever go on them.”

    Studies show spinal-cord stimulators can reduce use of powerful pain drugs by 60 percent or more, said Deer, a clinical professor of anesthesiology.

    Read More: Tangled Incentives Push Drugmakers Away From an Opioid Solution

    Technology breakthroughs that are just now reaching patients came from a better understanding of how pain signals are transmitted within the spinal cord, the main thoroughfare between the command center in the brain and the body.

    For some chronic pain patients, the spinal cord runs too efficiently, speeding signs of distress. Stimulators send their own pulses of electrical activity to offset or interrupt the pain zinging along the nerve fibers. They have been available for more than three decades, but until recently their invasive nature, potential safety risks and cost limited demand.

    Market Leader Abbott

    Illinois-based Abbott, with its $29 billion acquisition of St. Jude Medical this year, took the market lead with advances that allow it to target specific nerves and tailor the treatment. Nevro, of Redwood City, California, has rolled out improvement to its Senza system, a best-in-class approach that is safe while getting an MRI and operates without the tingling that often accompanies spinal-cord stimulation.

    In the latest devices, which cost $30,000 or more, codes that are running the electrical pulses are more sophisticated. The frequency, rate and amplitude can be adjusted, often by the patients, which allows personalized therapy. 

    The new implants are also smaller: The surgery is generally an outpatient procedure with minimal post-operative pain and a short recovery. They have longer battery life, reducing the need for replacement. And patients can try out a non-invasive version of the equipment before getting a permanent implant.

    “This is really a defining moment in what we can do to impact the lives of people who suffer from chronic pain,” said Allen Burton, Abbott’s medical director of neuromodulation. “We can dampen the chronic pain signal and give patients their lives back.”

    Medtronic Plc, which pioneered the technique but ceded the lead in recent years, is now working on next-generation devices. The company recently gained approval for the smallest pain-management implant, Intellis. In development are devices that can detect pain waves and adjust automatically, said Geoff Martha, executive vice president of Medtronic’s restorative therapies group.

    “A self-correcting central nervous system — that’s the panacea. That’s the ultimate goal,” Martha said. “It could take a huge bite out of the opioid problem.”

      Read more: http://www.bloomberg.com/news/articles/2017-12-26/spinal-cord-implants-to-numb-pain-emerge-as-alternative-to-pills