Rare iOS bug can cause text messages to crash your iPhone
But the message must contain a specific series of Arabic characters, so you're likely to receive it only as a prank. And there are ways to resolve the problem.
A bug in iOS is causing certain text messages to crash your iPhone.CNET
A quirky bug in Apple's iOS can crash and reboot your iPhone if you receive a certain text message.
First revealed by a Reddit user on Tuesday, the bug works as follows: Someone texts you a message with a specific string of Arabic characters. If your iPhone is locked, and you receive a notification of the new text, iMessage crashes and your iPhone proceeds to reboot.
iOS bugs are nothing new. Since its release last September, iOS 8 has been beset by glitches that have forced Apple to continually issue updates to resolve certain issues. But this latest bug is much more random and rare than others, so it's not something that would affect a wide audience. And it's one that users can resolve themselves without waiting for Apple to issue a fix.
What's the cause behind this newly-discovered bug? It's not the Arabic characters per se but the way iOS tries to handle the full text string, as described by AppleInsider. The Unicode characters that attempt to render and display the string chew up too many resources when your phone is locked and the notification of the message appears.
The folks at AppleInsider sent the same text string during a normal iMessage conversation, and the iPhone did not crash or reboot. That test suggests the glitch lies more within iOS's notifications process and not within the iMessage app.
Several iOS users have chimed in on Reddit and Twitter to report the problem. But it's not one likely to affect most people. First of all, you'd need to be texted that specific string of characters while your iPhone is locked. That means you're not going to receive it accidentally but rather from someone who knows your mobile number and is purposely trying to crash your iPhone for some reason.
What if you do bump into this particular bug? There are a few ways around it.
You can always turn off notifications for text messages, but that's hardly an ideal solution. Instead, you can simply trigger another text message. You can ask the person who sent you the original message to send a new one, assuming that person didn't send it maliciously. Otherwise, you can send yourself a text message easily enough by telling Siri to do it or using an iOS app that lets you share content via iMessage. The new text message essentially supercedes the older message, so you can use iMessage again.
Apple knows about the problem and is working on a fix.
"We are aware of an iMessage issue caused by a specific series of unicode characters and we will make a fix available in a software update," an Apple spokesperson said.
Apple didn't say when the fix would roll out, but it could pop up as soon as the next iOS update appears. Developers are currently beta testing iOS 8.4, so Apple may have time to squeeze in a fix before it rolls that latest update.
Apple's envisioned multitouch keyboard could kill the trackpad
Described in a newly-published Apple patent filing, the so-called Fusion keyboard could pick up multitouch gestures from your keystrokes, potentially eliminating the need for a trackpack.
Could trackpads one day be obsolete?Apple/USPTO
Your future Apple MacBook may not need a trackpad for you to move around the screen.
Published on Tuesday by the United States Patent and Trademark Office, a patent dubbed simply "Fusion keyboard" describes a keyboard with keys that can both insert characters as well as deploy touch gestures.
Why create a laptop that doesn't necessarily need a trackpad? Size is one major reason. The trackpad on MacBooks as well as other laptops take up a fare amount of space, increasing the overall size of the device. A laptop that dispensed with a trackpad could shrink in overall size or allow greater space for the keyboard so the keys aren't as scrunched together and are therefore easier to type on. You'd also be able to work faster since your hands would never have to leave the keyboard to move to a trackpad.
How would a Fusion keyboard work? You'd be able to swipe your fingers across the keys to move across the screen, just as you can with a trackpad. The touch-sensitive keys would provide all the functionality of a trackpad, giving you the ability to point and click, select items, zoom in and out and scroll around the screen, all without leaving the keyboard.
Each key would also have two levels, so you'd be able to perform different tasks based on how hard you press the key. For example, pressing the key softly to the first level could input a character, while pressing it harder to the second level might register a mouse click.
Further, you'd be able to type and swipe at the same time. So your left hand might be typing away on the left side of the keyboard, while your right hand would be swiping across a set of keys to move around the screen.
In the patent application, Apple describes the drawback with current keyboards:
There have been numerous attempts made to introduce an alternative to the standard keyboard. The changes include, but are not limited to, non-QWERTY layouts, concave and convex surfaces, capacitive keys, split designs, membrane keys, etc. However, while such alternative keyboards may provide improved usability or ergonomics, they have failed to replace or duplicate the commercial success of the conventional mechanical keyboard.
As always, a patent application by itself doesn't mean the invention will ever hit the real world. But by adding touch sensitivity to the standard mechanical keyboard, the Fusion keyboard could succeed where other alternative keyboards have failed.
Popular live-streaming app arrives on Android almost a month after its top competitor Meerkat.
Twitter is launching its popular live-streaming app Periscope for Android users.James Martin/CNET
After weeks of speculation and anticipation, Twitter is launching its wildly popular Periscope live-streaming app for Android users.
The microblogging service announced Tuesday its broadcasting app, which lets users stream and edit live video, will be available on the Google Play store. Periscope's debut on Android devices comes less than three months after its launch and less than a month after after rival Meerkat appeared on Android.
Periscope has been a huge success for Twitter since its debut on iOS hot on the heels of Meerkat. The social network said Periscope had more than 1 million users within its first 10 days. Periscope's app for Android will comparable features to its iOS counterpart, including allowing users to tweet a link to their broadcasts and have optional location sharing.
The app also will give Android users more specific control over notifications, including when a follower goes lives, shares a broadcast or is followed by someone else. Also, if an Android user leaves a broadcast to answer a text message, they will get a notification inviting them back to the broadcast they were watching.
"It will be unmistakably Periscope with a look and feel that is Android-specific," said Sara Haider, Twitter's lead engineer for Android.
Live video is quickly becoming an important elements for social networks as more people are broadcasting their personal lives -- from celebrating at parties to demonstrating at protests -- on the Internet. There are also potential revenue opportunities as marketers look to how they can make money and advertise with individualized video feeds.
Periscope founder Kayvon Beykpour said he understands the public demand as the startup quickly began working on the app for Android earlier this year. Beykpour said he's been astonished to see the reaction.
"The reception has been overwhelming in the most positive way just by the sheer magnitude of users," he said. "We're seeing people using in ways we never thought of, it's been actually quite mind blowing."
So much so that Periscope came under sharp criticism earlier this month after many users illegally live-streamed the highly anticipated Floyd Mayweather-Manny Pacquiao boxing match that cost $100 to watch on pay-per-view. Beykpour said they received 66 requests to take down broadcasts and took action against 30 within minutes. The rest were already removed.
Twitter CEO Dick Costolo fanned the flames by tweeting "And the winner is...@periscopeco."
Beykpour reiterated prior to Periscope's Android launch that it is operating in compliance with the Digital Millennium Copyright Act and is working to ensure there are tools in place to respond to illegal streams.
Want cheaper wireless service? Patience is a virtue
CNET's Marguerite Reardon explains how three key phenomena could reshape the wireless industry in the next few years and pave the way for more-affordable mobile services.
The US wireless market is on the cusp of big changes and competitive clashes. Those, in turn, could lead to lower prices and better deals for you.
At least that's how I hope things will play out over the next few years. From Google's Project Fi experiment to build a hybrid Wi-Fi/cellular network, to rumblings about someone finally making use of Dish Network's stockpile of wireless spectrum, to the last major wireless auction for the foreseeable future -- there's a lot of activity in the mobile world. And with luck we'll see additional legitimate options in the wireless business, which could mean more-competitive prices.
In this edition of Ask Maggie, I look at each of these scenarios and explain how it could shape the future of the wireless industry.
How long do I have to wait for change?
Dear Maggie,
I've been reading your articles regarding cell phone bills and upgrades. Clearly, there is a lot of confusion about upgrades right now, and about leasing phones.
I recently called my wireless provider to inquire about a potential phone upgrade on my family plan, since my contract ends in October. I've heard so much about all these great deals, so I was expecting to be able to take advantage of them. What I quickly learned is that whether I sign up for another two year plan, take the leasing plan or buy a phone outright, my total cost is about the same.
Let's get real. They are NOT offering real discounts/incentives. If you read between the lines, the only thing they've promised is to increase your bill. Especially, for those households with teens. How many families can really afford to purchase multiple cell phones these days? It really doesn't matter if you choose a two year contract (if available) or the (AT&T) "Next" plan.
The fact is, we as consumers are being ripped off. To add insult to injury, the phones we currently own seem to self-destruct right around the time our contract is about to end or the phone is fully paid for. It's like the phone makers and wireless companies are in cahoots to make sure you upgrade.
Please tell me something better is coming. When will we see real discounts on service?
Thanks, Shawn
Dear Shawn,
You seem to have a pretty good read on the market. You're absolutely correct that some of the new no-contract leasing plans don't offer much of a discount, if any discount, over the older contract plans. And you're also right about the plans being confusing. Sometimes I wonder if the complicated plans offered by wireless operators are deliberately designed to confuse people into spending more money because they don't fully understand all the charges.
CNET
But the truth is that over the past year, wireless companies have reported that the average revenue per user has fallen about 7 percent, and total revenue for the entire wireless industry has essentially flatlined, according to equity research analyst Craig Moffett of MoffettNathason Research. This is happening at the same time that consumers have nearly doubled the data usage on wireless networks.
Still, this doesn't mean that every consumer is seeing huge discounts on their monthly bills. As you rightfully point out, some folks may actually be paying more under new plans, and scores of others are seeing no difference in how much they pay each month for phone service. At the end of the day, mobile phone bills are still a big strain on family budgets.
Where are things headed?
I like to think of myself as an optimist, and I see signs that positive change for consumers is coming. We've already begun to see some changes in the industry as the result of growing competition. T-Mobile's Uncarrier strategy, introduced two years ago, has prompted AT&T and Verizon to alter service plans. Sprint has also come out with some aggressively priced plans that have given consumers an alternative to AT&T and Verizon.
Though pricing may not have dropped as dramatically you'd like, consumers in general are getting more services for roughly the same money they were paying before. And some customers are actually paying less for their service.
More changes could be on the horizon. Here are three main trends/events that could reshape the industry and create more competition that would ultimately benefit consumers.
'Wi-Fi first' and the Google effect
Last month Google announced its Wi-Fi-first wireless service called Project Fi.The service is built using a combination of free Wi-Fi networks and leased service from traditional carriers to provide consumers with inexpensive wireless service. Small startups, such as Scratch Wireless and Republic Wireless, have already been offering services based on this model for more than a year.
Juan Garzón/CNET
The idea of Wi-Fi first is that customers of these services can make phone calls, send text messages and access the Internet using Wi-Fi hotspots when they're available. When not, the service automatically switches to a traditional cellular service. In the case of Scratch and Republic Wireless, customers access Sprint's network. Google's Project Fi service will use either T-Mobile's service or Sprint's service, depending on which one offers the best connection.
The benefit is that Wi-Fi first phone services are cheap. Republic's service is only $5 a month for customers who make calls, access the Internet and text over Wi-Fi networks. Scratch offers these basic services for customers on Wi-Fi networks for free. The cost of these services increases when customers roam onto a cellular network. But because most wireless subscribers are within a Wi-Fi network most of the time, cellular roaming is often minimal, which keeps costs low. For instance, Scratch says that two-thirds of its customers every month do not roam onto a cellular network at all.
Google's pricing is not nearly as aggressive as that of Scratch Wireless or Republic Wireless. Its basic service, which includes unlimited talk and text messaging, starts at $20. It then charges $10 more a month for every 1GB of data. Even though Google's pricing is higher than that of Scratch or Republic, the fact that Google has dipped its toe in this market has huge implications for the industry.
Project Fi on its own isn't likely to threaten the dominance of Verizon and AT&T, but the lessons that Google learns and the technology it hones could be useful for the entire industry. And this could help nontraditional telephone companies looking to compete with the big wireless companies get into the market using a similar Wi-Fi-first approach.
For instance, Google could use its technology and clout to push for a more seamless transition between Wi-Fi and cellular -- a transition that hasn't worked so well in the past. That could pave the way for cable providers or other companies with wireless ambitions to create a wireless business to challenge the wireless operators. The cable industry is uniquely positioned for such a disruption, since they could wed cellular service with their own network of Wi-Fi hotspots.
"Google will be an accelerant in a market that the cable companies have already shown interest in," said Spencer Kurn, analyst at New Street Research. "It will help cable companies figure out how to improve the quality of the Wi-Fi service so that it can compete with wireless."
Dish Network: Spectrum hoarder or new competitor?
Satellite TV provider Dish isn't in the wireless service business today. But Chairman Charlie Ergen hasn't kept secret his desire to expand into the area. The company has amassed a healthy war chest of wireless spectrum over the past few years in various auctions and through private deals. That's necessary if you want to build your own wireless network.
Dish Network
The company has talked about getting into the wireless broadband market with a service to rival those offered by the big wireless companies. But so far, it hasn't made a major move other than buying more spectrum assets.
That could soon be changing as the company faces pressure from the Federal Communications Commission to put its spectrum to use. Last week, Yahoo Finance reported it had obtained a "confidential" document that indicates Dish is seeking a chief marketing officer to move into the wireless market.
Though Dish has been tight-lipped about specific plans for its wireless spectrum, the company has tried to strike deals with existing wireless companies. Two years ago it tried to acquire Sprint but lost out to Japanese wireless carrier Softbank. And there's been a lot of speculation over the past year about a merger with T-Mobile or a possible deal with Verizon.
At this point, it's unclear whether Dish will build its own wireless network or if it will strike a deal with an existing wireless player. There's also a chance the company could partner with a nontraditional wireless company to add a new competitor to the market. If the spectrum is put to use to create a new competitor, that could bode well for consumers, who would benefit from another upstart potentially offering some deals.
Last call for wireless spectrum
In early 2016, the FCC is expected to hold the last major auction of wireless spectrum for the foreseeable future. Wireless spectrum is considered the lifeblood of the wireless industry because its radio signals are critical to carrying the data that translates into our phone calls, text messages and YouTube cat videos. Operators need more and more of it to keep up with demand for more bandwidth from consumers. Without enough spectrum in the right markets, competitors wither and die.
James Martin/CNET
The so-called incentive auction scheduled for early 2016 will take unused or underused spectrum in the 600MHz band of frequency used by TV broadcasters and sell it to mobile-broadband operators. The auction will let TV broadcasters take a portion of the proceeds from the auction in exchange for giving up some of their unused spectrum.
This auction is important because the licenses that will be auctioned off are for low-band frequencies, which can transmit data over longer distances and penetrate through obstacles like walls easier than at higher frequencies. It's often referred to as the "beachfront property" of spectrum frequencies.
This spectrum is of particular importance to operators like T-Mobile and Sprint, because it could enable them to extend their networks to more suburban and rural markets.
What this means for consumers of wireless is that T-Mobile could become an even stronger competitor to AT&T and Verizon. Its Uncarrier strategy has already put pressure on the carriers to make changes in their plans, and a stronger network would only help its case. AT&T and Verizon are now offering device leasing options, thanks in large part to T-Mobile's move in this direction. Even though this change may not make services less expensive for all consumers, it offers consumers options. And it could be an initial step toward more change. T-Mobile believes that with this additional spectrum, it can continue to put pressure on the rest of the market, which will ultimately benefit all wireless subscribers.
"T-Mobile is playing a really interesting role that benefits all American consumers by changing the rules in wireless," Mike Sievert, T-Mobile's chief marketing officer, said in a recent interview. "We can continue to do that indefinitely on behalf of the industry's consumers with the right asset base."
Sievert went on to explain that the low-band spectrum that will be auctioned off next year is the key to keeping its competitive momentum going.
"We know that in order for us to take the best advantage of our ability to create real competition in the marketplace, spectrum is the core ingredient," Sievert said. "There is just no question about that."
The bottom line
Pricing pressure from T-Mobile and Sprint has already begun to shake things up in the wireless market. Consumers on average are spending slightly less on service than they were a few years ago. But there's still a long way to go in terms of making wireless service more affordable.
More competition could shake things up further. But the reality is that none of these things will happen overnight. And there's no guarantee that any of them will work out as expected. For instance, Google's service could be a disaster and the company could abandon its efforts. Dish could continue to stall its plans to put its spectrum to use. And larger operators AT&T and Verizon could once again walk away with the majority of wireless spectrum in the upcoming auction and shut out smaller players like T-Mobile and Sprint.
Sony has given its sleek, powerhouse flagship phone an update to help it joust with the new flock of smartphone big boys, the Samsung Galaxy S6 and LG G4.
The new version is called the Z3+ and as the name suggests, it's very much an evolution of the existing Xperia Z3, rather than a totally overhauled new flagship. It has the same 5.2-inch, full-HD display, the same 20.7-megapixel rear camera and the glass-and-metal waterproof design looks almost identical too.
So what exactly is new? Well, it's slimmer, the front camera has been boosted from 2.2 to 5 megapixels and it has the latest Qualcomm Snapdragon 810 processor at its heart, with 3GB of RAM and 32GB of storage.
Andrew Hoyle/CNET
The Z3+ is due for a Europe-only launch in June, but here's where it gets just a little confusing: Sony has already unveiled the Xperia Z4 for Japan. Although the name suggests the Z4 is a new flagship altogether, it is in fact identical in all but name to the Z3+. It seems that Sony is simply selling the phone with different names for different regions.
Sony has yet to say whether the Z3+ or Z4 will make it to the US or Australia, and at the time of writing, pricing details aren't known, but we'll update this article with more information when it becomes available.
Design and display
Even up close you won't be able to tell any real difference between the existing Z3 and the Z3+, as they're almost identical. There's a glass front and back, with a metal band running around the edge and protective Nylon corners. There are some changes however.
Sony boasts that the Z3+ is the "slimmest Xperia Z series smartphone" to date, measuring only 6.9mm thick, making it 4mm thinner than the standard Z3. It's not a life-changing reduction by any means, but the phone does feel very slim and thoroughly luxurious to hold, and the stark, minimalist aesthetic still looks gorgeous.
The Z3+ also retains the Z3's waterproof credentials. It can not only withstand a spilled drink on a night out, but can be fully submerged in water up to 1.5 metres deep for up to 30 minutes. That makes it a great phone for underwater photos on those sunny beach holidays. Better yet, Sony has added waterproofing to the Micro-USB port, meaning it no longer has a rubber flap over it that has to be removed and replaced every time you charge it.
Andrew Hoyle/CNET
The display, measuring 5.2 inches on the diagonal, is both the same size and resolution (1,920x1,080 pixels) as the standard Z3's. In my hands-on time, it seemed every bit as bright, bold and crisp as the Z3, but I'll leave my final verdict on the display quality for the final review. The Z3's screen was excellent so I have high hopes.
Processor and software features
The phone will arrive with the latest Android 5.0 Lollipop software on board, with Sony's usual custom interface over the top. I quite like Sony's interface as it's neat, makes it easy to organise the app tray into custom orders and isn't so bloated as to slow the phone down. Sony does tend to throw a fair few of its own apps into the mix, which can make it seem a bit cluttered right out of the box, but hopefully it hasn't gone overboard here.
The processor is one of the main areas that's been updated from the Z3. The Z3+ packs Qualcomm's latest Snapdragon 810 processor -- a 64-bit octa-core chip -- along with 3GB of RAM. That's a potent lineup, and I expect it to deliver a blistering performance for gaming, photo editing and everyday social networking. I will of course be seeing exactly how it stacks up against its rivals and its predecessor for the full review.
Andrew Hoyle/CNET
Camera and battery life
The rear camera specs remain much the same as the predecessor, with a 20.7-megapixel sensor, but the front camera has been boosted from 2.2 to 5 megapixels, which is a hefty serving of pixels to add clarity to those selfies. The front camera also apparently has an improved automatic mode, as well as HDR shooting for more even exposures.
The battery has shrunk slightly from 3,100mAh to 2,900mAh, presumably as a result of the phone being made slimmer. On paper that's not great, but Sony still reckons you can get two days of careful use from a single charge, thanks to software and processor optimisation. I found the Z3's battery to be among the better you'll find in a lot of top-end smartphones, so I'm hoping for similarly good battery life in the Z3+.
Outlook
If you were hoping for a full refresh of the Xperia Z3 then you will be disappointed. The Z3+ is very much a minor update to the existing phone, instead. Still, a slimmer body and upgraded processor are nothing to be sniffed at and may be worth a look if you're hoping to upgrade from one of the older Z-series phones.
Learn how to make cool miniature effect photos using nothing more than your smartphone.
Ben Thomas
Tilt-shift photos make the world look miniature, almost as if you are looking at a diorama.
Traditionally, to achieve these photos you need to manipulate perspective and depth of field with a dedicated tilt-shift lens and dSLR.
However, the miniature effect can be mimicked using tools like Photoshop, or even a smartphone.
Ben Thomas is a photographer who has captured cities around the world in their full tilt-shift glory. Although he often uses traditional photographic gear, he also uses a smartphone for many of his images.
Thomas suggests starting with something that reminds you of your childhood. "Cars, trains, planes even playgrounds and the beach make great subjects," he says.
The city of Melbourne looks like a diorama in this smartphone tilt-shift photo.Ben Thomas
Step one: The key to achieve a good result is to find a high vantage point. Try photographing subjects from buildings looking down to the ground; a bridge; Ferris Wheel or even in a sports stadium.
Keep your composition relatively simple and make sure any human subjects are small in the scene. Ensure there is plenty of light available so you can take the sharpest starting photo possible.
Step two: Load up a tilt-shift filter in your default camera app. Look for something called miniature or blur effect. Otherwise, you can use a separate app to edit an existing photo that you have already taken.
Some third-party apps to create tilt-shift photos include TiltShiftGen2 for iOS. Windows Phone users can try the Lumia Creative Studio app with a tilt-shift effect (look for the blur menu). For Android, grabPixlr for free. Otherwise, Instagram also has a tilt-shift effect.
Step three: If you are taking the photo from within the tilt-shift app, adjust the exposure if necessary to avoid blowing out highlights or losing detail in shadow areas.
Step four: Now it's time to add the effect to your photo and select your plane of focus. Depending on the app, you can usually adjust other variables like the amount of blur.
In Pixlr, tap the Adjustment icon then select Focal. Choose a linear (rather than circular) effect and move/rotate the lines where you want to keep your point of focus. Select the amount of blur you desire.
Adjusting the focal plane in Pixlr.Screenshot by Lexy Savvides/CNET
Screenshot by Lexy Savvides/CNETThe radial/circular effect will keep a circular area of the image relatively sharp, with the rest falling out to blur. It can look quite artificial with heavy use.
In Instagram (right), once you have loaded or taken the photo you wish to post, tap the wrench icon and scroll across to find the tilt-shift icon at the far right.
From here, you can choose a radial or linear effect. Adjust the focal point by tapping on the image and dragging up and down. Expand the range by using two fingers to pinch and drag. Here's a detailed run-down of how to use this effect on Instagram.
Step five: Thomas suggests boosting colours and other image attributes to bring the subject to the fore.
Saturation, contrast and vibrancy are all settings you may want to tweak for a more pronounced effect.
Sooall Next DNA eBike turns calories into battery life
China's Sooall gives exercise an eco edge, letting you charge some batteries while you pedal away your excess fat.
Charge your batteries while burning fat with Sooall's exercise bike.Aloysius Low/CNET
SHANGHAI -- At the inaugural CES Asia, Chinese firm Sooall serves up an interesting spin on the exercise bike with the Next DNA eBike. Its name is a mouthful and inexplicably includes a DNA reference, but if you're thinking 'eBike' means electric, you're both right and wrong. This bike doesn't use electricity to generate speed, it uses speed to generate electricity.
Located at the rear of the trainer are three battery packs, which are charged when you start working out. Once charged, you can use these USB-friendly power packs to juice up your other mobile devices. There's no word on the exact capacity of the battery packs, and how long you'd have to pedal to deliver a full charge. I'll update should we get a clear answer.
That's not all the bike has up its sleeve. A Sooall spokesperson said the bike will also have a virtual coach that will help you train, and can alter the intensity required of the pedals based on a real route. If you're "climbing" a mountain, expect the pedal resistance to be pretty draining on your legs.
Remembering that everything in the world is meant to be smart and connected these days, the Next DNA eBike will also support multiplayer. If you have friends who also own the eBike you can cycle routes at the same time. This could deliver great motivation benefits, making you feel more accountable to completing a training session when you have friends putting in the effort at the same time.
The unit on display was a prototype so we couldn't take it for a test ride, and the battery packs weren't exactly real either. With that said, a Sooall spokesperson said the company has plans to launch this bike in the next two months in China, at 10,000 Renminbi (around $1,612, £1,040 and AU$2,058). So if you're getting this, you better be putting in the effort to get your money's worth.
One of the three battery packs you'll be charging.
Craft makers, would you decamp from Etsy for someplace called Handmade at Amazon? The e-commerce giant is looking to gauge your interest.
Uh-oh, Etsy. Amazon may have a Handmade challenge for you.Screenshot by CNET
A decade into its run on the Web, the crafts marketplace Etsy may soon face its biggest challenge yet.
E-commerce titan Amazon has been putting out feelers to sellers on Etsy, pointing them to an online form thanking them for their interest in "Handmade at Amazon." They're asked to fill out the form with information about their business and the items they sell -- from jewelry to gourmet goods to toys and games -- with a promise to keep respondents updated "while we set up shop."
Etsy's artisans began posting notes about Amazon's inquiries to Etsy's online forums late last week, and the news was noted by the Wall Street Journal on Friday evening.
Etsy as it appears on iOS.Etsy
Amazon and Etsy both declined to comment to CNET.
Brooklyn-based Etsy has built a business by connecting buyers and sellers of arts and crafts, deriving its revenue from listing fees and from commissions on items for sale. The potential launch of Amazon's Homemade marketplace comes as it enters a new financial phase. In April, the 10-year-old Etsy began trading as a public company on the Nasdaq exchange.
At the end of the first quarter of the year, Etsy reported more than 1.4 million active sellers (up 26 percent year over year) and 20.8 million active buyers (up 37 percent). Its revenue for the period was $58.5 million on gross merchandise sales of nearly $532 million -- increases year over year of 44 percent and 28 percent, respectively.
The Wall Street firm Wedbush Securities last week called it unlikely that a big e-commerce company like Amazon, eBay or Alibaba would want to acquire Etsy "as they already have most of Etsy's customers and many of Etsy's sellers." Rather, Wedbush said in a note to investors, "We believe if the bigger players wanted to specifically address this [niche] ... they would only need to segregate a handcrafted section and funnel existing buyers and sellers."
But as the Wall Street Journal noted, Etsy's fees to sellers are notably lower than those of Amazon.
Amazon, which got its start as a bookseller, now has dozens of marketplaces in areas as far afield as fine art, laboratory and scientific equipment, musical instruments and business supplies. It already has a marketplace dedicated to "Arts, Crafts & Sewing." Through its Amazon Prime subscription service, meanwhile, it also serves up streaming video and music, unlimited cloud storage of photos and other perks.
Want cheaper wireless service? Patience is a virtue
CNET's Marguerite Reardon explains how three key phenomena could reshape the wireless industry in the next few years and pave the way for more-affordable mobile services.
The US wireless market is on the cusp of big changes and competitive clashes. Those, in turn, could lead to lower prices and better deals for you.
At least that's how I hope things will play out over the next few years. From Google's Project Fi experiment to build a hybrid Wi-Fi/cellular network, to rumblings about someone finally making use of Dish Network's stockpile of wireless spectrum, to the last major wireless auction for the foreseeable future -- there's a lot of activity in the mobile world. And with luck we'll see additional legitimate options in the wireless business, which could mean more-competitive prices.
In this edition of Ask Maggie, I look at each of these scenarios and explain how it could shape the future of the wireless industry.
How long do I have to wait for change?
Dear Maggie,
I've been reading your articles regarding cell phone bills and upgrades. Clearly, there is a lot of confusion about upgrades right now, and about leasing phones.
I recently called my wireless provider to inquire about a potential phone upgrade on my family plan, since my contract ends in October. I've heard so much about all these great deals, so I was expecting to be able to take advantage of them. What I quickly learned is that whether I sign up for another two year plan, take the leasing plan or buy a phone outright, my total cost is about the same.
Let's get real. They are NOT offering real discounts/incentives. If you read between the lines, the only thing they've promised is to increase your bill. Especially, for those households with teens. How many families can really afford to purchase multiple cell phones these days? It really doesn't matter if you choose a two year contract (if available) or the (AT&T) "Next" plan.
The fact is, we as consumers are being ripped off. To add insult to injury, the phones we currently own seem to self-destruct right around the time our contract is about to end or the phone is fully paid for. It's like the phone makers and wireless companies are in cahoots to make sure you upgrade.
Please tell me something better is coming. When will we see real discounts on service?
Thanks, Shawn
Dear Shawn,
You seem to have a pretty good read on the market. You're absolutely correct that some of the new no-contract leasing plans don't offer much of a discount, if any discount, over the older contract plans. And you're also right about the plans being confusing. Sometimes I wonder if the complicated plans offered by wireless operators are deliberately designed to confuse people into spending more money because they don't fully understand all the charges.
CNET
But the truth is that over the past year, wireless companies have reported that the average revenue per user has fallen about 7 percent, and total revenue for the entire wireless industry has essentially flatlined, according to equity research analyst Craig Moffett of MoffettNathason Research. This is happening at the same time that consumers have nearly doubled the data usage on wireless networks.
Still, this doesn't mean that every consumer is seeing huge discounts on their monthly bills. As you rightfully point out, some folks may actually be paying more under new plans, and scores of others are seeing no difference in how much they pay each month for phone service. At the end of the day, mobile phone bills are still a big strain on family budgets.
Where are things headed?
I like to think of myself as an optimist, and I see signs that positive change for consumers is coming. We've already begun to see some changes in the industry as the result of growing competition. T-Mobile's Uncarrier strategy, introduced two years ago, has prompted AT&T and Verizon to alter service plans. Sprint has also come out with some aggressively priced plans that have given consumers an alternative to AT&T and Verizon.
Though pricing may not have dropped as dramatically you'd like, consumers in general are getting more services for roughly the same money they were paying before. And some customers are actually paying less for their service.
More changes could be on the horizon. Here are three main trends/events that could reshape the industry and create more competition that would ultimately benefit consumers.
'Wi-Fi first' and the Google effect
Last month Google announced its Wi-Fi-first wireless service called Project Fi.The service is built using a combination of free Wi-Fi networks and leased service from traditional carriers to provide consumers with inexpensive wireless service. Small startups, such as Scratch Wireless and Republic Wireless, have already been offering services based on this model for more than a year.
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The idea of Wi-Fi first is that customers of these services can make phone calls, send text messages and access the Internet using Wi-Fi hotspots when they're available. When not, the service automatically switches to a traditional cellular service. In the case of Scratch and Republic Wireless, customers access Sprint's network. Google's Project Fi service will use either T-Mobile's service or Sprint's service, depending on which one offers the best connection.
The benefit is that Wi-Fi first phone services are cheap. Republic's service is only $5 a month for customers who make calls, access the Internet and text over Wi-Fi networks. Scratch offers these basic services for customers on Wi-Fi networks for free. The cost of these services increases when customers roam onto a cellular network. But because most wireless subscribers are within a Wi-Fi network most of the time, cellular roaming is often minimal, which keeps costs low. For instance, Scratch says that two-thirds of its customers every month do not roam onto a cellular network at all.
Google's pricing is not nearly as aggressive as that of Scratch Wireless or Republic Wireless. Its basic service, which includes unlimited talk and text messaging, starts at $20. It then charges $10 more a month for every 1GB of data. Even though Google's pricing is higher than that of Scratch or Republic, the fact that Google has dipped its toe in this market has huge implications for the industry.
Project Fi on its own isn't likely to threaten the dominance of Verizon and AT&T, but the lessons that Google learns and the technology it hones could be useful for the entire industry. And this could help nontraditional telephone companies looking to compete with the big wireless companies get into the market using a similar Wi-Fi-first approach.
For instance, Google could use its technology and clout to push for a more seamless transition between Wi-Fi and cellular -- a transition that hasn't worked so well in the past. That could pave the way for cable providers or other companies with wireless ambitions to create a wireless business to challenge the wireless operators. The cable industry is uniquely positioned for such a disruption, since they could wed cellular service with their own network of Wi-Fi hotspots.
"Google will be an accelerant in a market that the cable companies have already shown interest in," said Spencer Kurn, analyst at New Street Research. "It will help cable companies figure out how to improve the quality of the Wi-Fi service so that it can compete with wireless."
Dish Network: Spectrum hoarder or new competitor?
Satellite TV provider Dish isn't in the wireless service business today. But Chairman Charlie Ergen hasn't kept secret his desire to expand into the area. The company has amassed a healthy war chest of wireless spectrum over the past few years in various auctions and through private deals. That's necessary if you want to build your own wireless network.
Dish Network
The company has talked about getting into the wireless broadband market with a service to rival those offered by the big wireless companies. But so far, it hasn't made a major move other than buying more spectrum assets.
That could soon be changing as the company faces pressure from the Federal Communications Commission to put its spectrum to use. Last week, Yahoo Finance reported it had obtained a "confidential" document that indicates Dish is seeking a chief marketing officer to move into the wireless market.
Though Dish has been tight-lipped about specific plans for its wireless spectrum, the company has tried to strike deals with existing wireless companies. Two years ago it tried to acquire Sprint but lost out to Japanese wireless carrier Softbank. And there's been a lot of speculation over the past year about a merger with T-Mobile or a possible deal with Verizon.
At this point, it's unclear whether Dish will build its own wireless network or if it will strike a deal with an existing wireless player. There's also a chance the company could partner with a nontraditional wireless company to add a new competitor to the market. If the spectrum is put to use to create a new competitor, that could bode well for consumers, who would benefit from another upstart potentially offering some deals.
Last call for wireless spectrum
In early 2016, the FCC is expected to hold the last major auction of wireless spectrum for the foreseeable future. Wireless spectrum is considered the lifeblood of the wireless industry because its radio signals are critical to carrying the data that translates into our phone calls, text messages and YouTube cat videos. Operators need more and more of it to keep up with demand for more bandwidth from consumers. Without enough spectrum in the right markets, competitors wither and die.
James Martin/CNET
The so-called incentive auction scheduled for early 2016 will take unused or underused spectrum in the 600MHz band of frequency used by TV broadcasters and sell it to mobile-broadband operators. The auction will let TV broadcasters take a portion of the proceeds from the auction in exchange for giving up some of their unused spectrum.
This auction is important because the licenses that will be auctioned off are for low-band frequencies, which can transmit data over longer distances and penetrate through obstacles like walls easier than at higher frequencies. It's often referred to as the "beachfront property" of spectrum frequencies.
This spectrum is of particular importance to operators like T-Mobile and Sprint, because it could enable them to extend their networks to more suburban and rural markets.
What this means for consumers of wireless is that T-Mobile could become an even stronger competitor to AT&T and Verizon. Its Uncarrier strategy has already put pressure on the carriers to make changes in their plans, and a stronger network would only help its case. AT&T and Verizon are now offering device leasing options, thanks in large part to T-Mobile's move in this direction. Even though this change may not make services less expensive for all consumers, it offers consumers options. And it could be an initial step toward more change. T-Mobile believes that with this additional spectrum, it can continue to put pressure on the rest of the market, which will ultimately benefit all wireless subscribers.
"T-Mobile is playing a really interesting role that benefits all American consumers by changing the rules in wireless," Mike Sievert, T-Mobile's chief marketing officer, said in a recent interview. "We can continue to do that indefinitely on behalf of the industry's consumers with the right asset base."
Sievert went on to explain that the low-band spectrum that will be auctioned off next year is the key to keeping its competitive momentum going.
"We know that in order for us to take the best advantage of our ability to create real competition in the marketplace, spectrum is the core ingredient," Sievert said. "There is just no question about that."
The bottom line
Pricing pressure from T-Mobile and Sprint has already begun to shake things up in the wireless market. Consumers on average are spending slightly less on service than they were a few years ago. But there's still a long way to go in terms of making wireless service more affordable.
More competition could shake things up further. But the reality is that none of these things will happen overnight. And there's no guarantee that any of them will work out as expected. For instance, Google's service could be a disaster and the company could abandon its efforts. Dish could continue to stall its plans to put its spectrum to use. And larger operators AT&T and Verizon could once again walk away with the majority of wireless spectrum in the upcoming auction and shut out smaller players like T-Mobile and Sprint.
But as I said before, I am an optimist. I'm hopeful that the next 5 to 10 years will bring more competition from new and existing competitors. And that could mean a lighter load on our wallets.
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