Monday, November 30, 2020

A tween tries Apple’s new ‘Family Setup’ system for Apple Watch

With the release of watchOS 7, Apple at last turned the Apple Watch into the GPS-based kid tracker parents have wanted, albeit at a price point that requires careful consideration. As someone in the target demographic for such a device — a parent of a “tween” who’s allowed to freely roam the neighborhood (but not without some sort of communication device) — I put the new Family Setup system for the Apple Watch through its paces over the past couple of months.

The result? To be frank, I’m conflicted as to whether I’d recommend the Apple Watch to a fellow parent, as opposed to just suggesting that it’s time to get the child a phone.

This has to do, in part, with the advantages offered by a dedicated family tracking solution — like Life360, for example — as well as how a child may respond to the Apple Watch itself, and the quirks of using a solution that wasn’t initially designed with the needs of family tracking in mind.

As a parent of a busy and active tween (nearly 11), I can see the initial appeal of an Apple Watch as a family tracker. It has everything you need for that purpose: GPS tracking, the ability to call and text, alerts, and access to emergency assistance. It’s easy to keep up with, theoretically, and it’s not as pricey as a new iPhone. (The new Apple Watch SE cellular models start at $329. The feature also works on older Apple Watch Series 4 or later models with cellular. Adding on the Apple Watch to your phone plan is usually around $10 per month more.)

I think the Apple Watch as a kid tracker mainly appeals to a specific type of parent: one who’s worried about the dangers of giving a younger child a phone and thereby giving them access to the world of addictive apps and the wider internet. I understand that concern, but I personally disagree with the idea that you should wait until a child is “older,” then hand them a phone and say “ok, good luck with that!” They need a transition period and the “tween” age range is an ideal time frame to get started.

The reality is that smartphones and technology are unavoidable. As a parent, I believe it’s my job to introduce these things in small measures — with parental controls and screen time limits, for example. And then I need to monitor their usage. I may make mistakes and so will my daughter, but we both need these extra years to figure out how to balance parenting and the use of digital tools. With a phone, I know I will have to have the hard conversations about the problems we run into. I understand, too, why parents want to put that off, and just buy a watch instead.

Image Credits: TechCrunch

After my experience, I feel the only cases where I’d fully endorse the Apple Watch would be for those tech-free or tech-light families where kids will not be given phones at any point, households where kids’ phone usage is highly restricted (like those with Wi-Fi only phones), or those where kids don’t get phones until their later teenage years. I am not here to convince them of my alternative, perhaps more progressive view on when to give a kid a phone. The Apple Watch may make sense for these families and that’s their prerogative.

However, a number of people may be wondering if the Apple Watch can be a temporary solution for perhaps a year or two before they buy the child a smartphone. To them, I have to say this feels like an expensive way to delay the inevitable, unavoidable task of having to parent your child through the digital age.

Given my position on the matter, my one big caveat to this review is that my daughter does, in fact, have a smartphone. Also, let’s be clear: this is not meant to be a thorough review of the Apple Watch itself, or a detailed report of its various “tech specs”. It’s a subjective report as to how things went for us that, hopefully, you can learn from.

Image Credits: Apple

To begin, the process of configuring the new Apple Watch with Family Setup was easy. “Set Up for a Family Member” is one of two setup options to tap on as you get started. Apple offers a simple user interface that walks you through pairing the Watch with your phone and all the choices that have to be made, like enabling cellular, turning on “Ask to Buy” for app purchases, enabling Schooltime and Activity features, and more.

What was harder was actually using the Apple Watch as intended after it was configured. I found it far easier to launch an iPhone app (like Life360, which we use) where everything you need is in one place. That turned out not to be true for Apple Watch Family Setup system.

For the purpose of testing the Apple Watch with Family Setup, my daughter would leave her iPhone behind when she went out biking or when meeting up with friends for outdoor activities.

As a child who worked her way up to an iPhone over a couple of years, I have to admit I was surprised at how irresponsible she was with the watch in the early weeks.

She didn’t at all respect at the multi-hundred dollar device it was, at first, but rather treated it like her junk jewelry or her wrist-worn scrunchies. The Apple Watch was tossed on a dresser, a bathroom counter, a kitchen table, on a beanbag chair, and so on.

Thankfully, the “Find My” app can locate the Apple Watch, if it has battery and a signal. But I’m not going to lie — there were some scary moments where a dead watch was later found on the back of a toilet (!!), on the top of the piano, and once, abandoned at a friend’s house.

And this, from a child who always knows where her iPhone is!

The problem is that her iPhone is something she learned to be responsible for after years of practice. This fooled me into thinking she actually was responsible for expensive devices. For two years, we painfully went through a few low-end Android phones while she got the hang of keeping up with and caring for such a device. Despite wrapping those starter phones in protective cases, we still lost one to a screen-destroying crash on a tile floor and another to being run over by a car. (How it flew out of a pocket and into the middle of the road, I’ll never understand!)

But, eventually, she did earn access to a hand-me down iPhone. And after initially only being allowed to use it in the house on Wi-Fi, that phone now goes outdoors and has its own phone number. And she has been careful with it in the months since. (Ahem, knocks on wood.)

The Apple Watch, however, held no such elevated status for her. It was not an earned privilege. It was not fun. It was not filled with favorite apps and games. It was, instead, thrust upon her.

While the iPhone is used often for enjoyable and addictive activities like Roblox, TikTok, Disney+, and Netflix, the Apple Watch was boring by comparison. Sure, there are a few things you can do on the device — it has an App Store! You can make a Memoji! You can customize different watch faces! But unless this is your child’s first-ever access to technology, these features may have limited appeal.

“Do you want to download this game? This looks fun,” I suggested. pointing to a coloring game, as we looked at her Watch together one night.

“No thanks,” she replied.

“Why not?”

“I just think don’t think it would be good on the little screen.”

“Maybe a different game?”

“Nah.”

And that was that. I could not convince her to give a single Apple Watch app a try in the days that followed.

She didn’t even want to stream music on the Apple Watch — she has Alexa for that, she pointed out. She didn’t want to play a game on the watch — she has Roblox on the bigger screen of her hand-me down laptop. She also has a handheld Nintendo Switch.

Image Credits: TechCrunch

Initially, she picked an Apple Watch face that matched her current “aesthetic” — simple and neutral — and that was the extent of her interest in personalizing the device in the first several weeks.

Having already burned herself out on Memoji by borrowing my phone to play with the feature when it launched, there wasn’t as much interest in doing more with the customized avatar creation process, despite my suggestions to try it. (She had already made a Memoji her Profile photo for her contact card on iPhone.)

However, I later showed her the Memoji Watch Face option after I set it up, and asked her if she liked it. She responded “YESSSS. I love it,” and snatched the watch from my hand to play some more.

Demo’ing features is important, it seems.

But largely, the Apple Watch was only strapped on only at my request as she walked out the door.

Soon, this became a routine.

“Can I go outside and play?”

“Yes. Wear the watch!,” I’d reply.

“I knowwww.”

It took over a month to get to the point that she would remember the watch on her own.

I have to admit that I didn’t fully demo the Apple Watch to her or explain how to use it in detail, beyond a few basics in those beginning weeks. While I could have made her an expert, I suppose, I think it’s important to realize that many parents are less tech-savvy than their kids. The children are often left to fend for themselves when it comes to devices, and this particular kid has had several devices. For that reason, I was curious how a fairly tech literate child who has moved from iPad to Android to now iPhone, and who hops from Windows to Mac to Chromebook, would now adapt to an Apple Watch.

As it turned out, she found it a little confusing.

“What do you think about the Watch?” I asked one evening, feeling her out for an opinion.

“It’s fun…but sometimes I don’t really understand it,” she replied.

“What don’t you understand?”

“I don’t know. Just…almost everything,” she said, dramatically, as tweens tend to do. “Like, sometimes  I don’t know how to turn up and down the volume.”

Upon prodding, I realize she meant this: she was confused about how to adjust the alert volume for messages and notifications, as well as how to change the Watch from phone calls to a vibration or to silence calls altogether with Do Not Disturb. (It was her only real complaint, but annoying enough to be “almost everything,” I guess!)

I’ll translate now from kid language what I learned here.

First, given that the “Do Not Disturb” option is accessible from a swipe gesture, it’s clear my daughter hadn’t fully explored the watch’s user interface. It didn’t occur to her that the swipe gestures of the iPhone would have their own Apple Watch counterparts. (And also, why would you swipe up from the bottom of the screen for the Control Center when that doesn’t work on the iPhone anymore? On iPhone, you now swipe down from the top-right to get to Control Center functions.)

And she definitely hadn’t discovered the tiny “Settings” app (the gear icon) on the Apple Watch’s Home Screen to make further changes.

Instead, her expectation was that you should be able to use either a button on the side for managing volume — you know, like on a phone — or maybe the digital crown, since that’s available here. But these physical features of the device — confusingly — took her to that “unimportant stuff” like the Home Screen and an app switcher, when in actuality, it was calls, notifications, and alerts that were the app’s main function, in her opinion.

And why do you need to zoom into the Home Screen with a turn of the digital crown? She wasn’t even using the apps at this point. There weren’t that many on the screen.

Curious, since she didn’t care for the current lineup of apps, I asked for feedback.

“What kind of apps do you want?,” I asked.

“Roblox and TikTok.”

“Roblox?!,” I said, laughing. “How would that even work?”

As it turned out, she didn’t want to play Roblox on her watch. She wanted to respond to her incoming messages and participate in her group chats from her watch.

Oh. That’s actually a reasonable idea. The Apple Watch is, after all, a messaging device.

And since many kids her age don’t have a phone or the ability to use a messaging app like Snapchat or Instagram, they trade Roblox usernames and friend each other in the game as way to work around this restriction. They then message each other to arrange virtual playdates or even real-life ones if they live nearby.

But the iOS version of the Roblox mobile app doesn’t have an Apple Watch counterpart.

“And TikTok?” I also found this hilarious.

But the fact that Apple Watch is not exactly an ideal video player is lost on her. It’s a device with a screen, connected to the internet. So why isn’t that enough, she wondered?

“You could look through popular TikToks,” she suggested. “You wouldn’t need to make an account or anything,” she clarified, as these details were would fix the only problems she saw with her suggestion.

Even if the technology was there, a TikTok experience on the small screen would never be a great one. But this goes to show how much interest in technology is directly tied to what apps and games are available, compared with the technology platform itself.

Other built-in features had even less appeal than the app lineup.

Image Credits: Apple

Though I had set up some basic Activity features during the setup process, like a “Move Goal,” she had no idea what any of that was. So I showed her the “rings” and how they worked, and she thought it was kind of neat that the Apple Watch could track her standing. However, there was no genuine interest or excitement in being able quantify her daily movement — at least, not until one day many weeks later when were hiking and she heard my watch ding as my rings closed and wanted to do the same on hers. She became interested in recording her steps for that hike, but the interest wasn’t sustained afterwards.

Apple said it built in the Activity features so kids could track their move goal and exercise progress. But I would guess many kids won’t care about this, even if they’re active. After all, kids play — they don’t think “how much did I play?” Did I move enough today? And nor should they, really.

As a parent, I can see her data in the Health app on my iPhone, which is the device I use to manage her Apple Watch. It’s interesting, perhaps, to see things like her steps walked or flights climbed. But it’s not entirely useful, as her Apple Watch is not continually worn throughout the day. (She finds the bands uncomfortable — we tried Sport Band and Sport Loop and she still fiddles with them constantly, trying to readjust them for comfort.)

In addition, if I did want to change her Activity goals later on for some reason, I’d have to do from her Watch directly.

Of course, a parent doesn’t buy a child an Apple Watch to track their exercise. It’s for the location tracking features. That is the only real reason a parent would consider this device for a younger child.

On that front, I did like that the watch was a GPS tracker that was looped into our household Apple ecosystem as its own device with its own phone number. I liked that I could ping the Watch with “Find My” when it’s lost — and it was lost a lot, as I noted. I liked that I could manage the Watch from my iPhone, since it’s very difficult to reacquire a device to make changes, once it’s handed over to someone else.

I also liked the Apple Watch was always available for use. This may have been one of its biggest perks, in fact. Unlike my daughter’s iPhone, which is almost constantly at 10-20% battery (or much less), the watch was consistently charged and ready when it was time for outdoor play.

I liked that it was easier for her to answer a call on the Apple Watch compared with digging her phone out of her bike basket or bag. I liked that she didn’t have to worry about constantly holding onto her phone while out and about.

I also appreciated that I could create geofenced alerts — like when she reached the park or a friend’s house, for example, or when she left. But I didn’t like that the ability to do so is buried in the “Find My” app. (You tap on the child’s name in the “People” tab. Tap “Add” under “Notifications.” Tap “Notify Me.” Tap “New Location.” Do a search for an address or venue. Tap “Done.”)

Image Credits: TechCrunch

I also didn’t like that when I created a recurring geofence, my daughter would be notified. Yes, privacy. I know! But who’s in charge here? My daughter is a child, not a teen. She knows the Apple Watch is a GPS tracker — we had that conversation. She knows it allows me to see where she is. She’s young and for now, she doesn’t feel like this a privacy violation. We’ll have that discussion later, I’m sure. But at the present, she likes the feel of this electronic tether to home as she experiments with expanding the boundaries of her world.

When I tweak and update recurring alerts for geofenced locations, such alerts can be confusing or even concerning. I appreciate that Apple is being transparent and trying to give kids the ability to understand they’re being tracked — but I’d also argue that most parents who suddenly gift an expensive watch to their child will explain why they’re doing so. This is a tool, not a toy.

Also, the interface for configuring geofences is cumbersome. By comparison, the family tracking app Life360 which we normally use has a screen where you simply tap add, search to find the location, and then you’re done. One tap on a bell icon next to the location turns on or off its alerts. (You can get all granular about it: recurring, one time, arrives, leaves, etc. — but you don’t have to. Just tap and be alerted. It’s more straightforward.)

Image Credits: Apple

One feature I did like on the Apple Watch, but sadly couldn’t really use, was its Schooltime mode — a sort of remotely-enabled, scheduled version of Do Not Disturb. This feature blocks apps and complications and turns on the Do Not Disturb setting for the kids, while letting emergency calls and notifications break through. (Make sure to set up Shared Contacts, so you can manage that aspect.)

Currently, we have no use for Schooltime, thanks to this pandemic. My daughter is attending school remotely this year. I could imagine how this may be helpful one day when she returns to class.

But I also worry that if I sent her to class with the Apple Watch, other kids will judge her for her expensive device. I worry that teachers (who don’t know about Schooltime), will judge me for having her wear it. I worry kids will covet it and ask to try it on. I worry a kid running off with it, causing additional disciplinary headaches for teachers. I worry it will get smashed on the playground or during PE, or somehow fall off because she meddled with the band for the umpteenth time. I worry she’ll take it off because “the strap is so annoying” (as I was told), then leave it in her desk.

I don’t worry as much about the iPhone at school, because it stays in her backpack the whole time due to school policy. It doesn’t sit on her arm as a constant temptation, “Schooltime” mode or otherwise.

The Apple Watch Family Setup is also not a solution that adapts as the child ages to the expanding needs of teen monitoring, compared with other family tracking solutions.

To continue the Life360 comparison, the app today offers features for teen drivers and its new privacy-sensitive location “bubbles” for teens now give them more autonomy. Apple’s family tracking solution, meanwhile, becomes more limited as the child ages up.

For instance, Schooltime doesn’t work on an iPhone. Once the child upgrades to an iPhone, you are meant to use parental controls and Screen Time features to manage what apps are allowed and when she can use her device. It seems a good transitional step to the phone would be a way to maintain Schooltime mode on the child’s next device, too.

Instead, by buying into Apple Watch for its Family Setup features, what you’ll soon end up with is a child who now owns both an Apple Watch and a smartphone. (Sure, you could regift it or take it back, I suppose…I certainly do wish you luck if you try that!)

Beyond the overboard embrace of consumerism that is buying an Apple Watch for a child, the biggest complaint I had was that there were three different apps for me to use to manage and view data associated with my daughter’s Apple Watch. I could view her tracked activity was tracked in my Health app. Location-tracking and geofence configuration was in the Find My app. And remotely configuring the Apple Watch itself, including Schooltime, was found in my Watch mobile app.

I understand that Apple built the Watch to be a personal device designed for use with one person and it had to stretch to turn it into a family tracking system. But what Apple is doing here is really just pairing the child’s watch with the parent’s iPhone and then tacking on extra features, like Schooltime. It hasn’t approached this as a whole new system designed from the ground-up for families or for their expanding needs as the child grows.

As a result, the whole system feels underdeveloped compared with existing family tracking solutions. And given the numerous features to configure, adjust, and monitor, Family Setup deserves its own app or at the very least, its own tab in a parent’s Watch app to simplify its use.

At the end of the day, if you are letting your child out in the world — beyond school and supervised playdates — the Apple Watch is a solution, but it may not be the best solution for your needs. If you have specific reasons why your child will not get their own phone now or anytime soon, the Apple Watch may certainly work. But if you don’t have those reasons, it may be time to try a smartphone.

Both Apple and Google now offer robust parental control solutions for their smartphone platforms that can mitigate many parents’ concerns over content and app addiction. And considering the cost of a new Apple Watch, the savings just aren’t there — especially when considering entry-level Android phones or other hand-me-down phones as the alternative.

[Apple provided a loaner device for the purposes of this review. My daughter was cited and quoted with permission but asked for her name to not be used.]



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The road to smart city infrastructure starts with research

In the United States, critical city, state and federal infrastructure is falling behind. While heavy investment, planning and development have gone into the U.S. infrastructure system, much of it is not keeping up with the pace of new technology, and some of it hasn’t had a proper update in decades, instead just adding new systems onto old systems. This can be allotted to a combination of liability structures in the U.S., difficulty in enabling interconnection between infrastructure in different jurisdictions, worry over introducing large-scale security risks and an attempt to mitigate that risk.

There is interest in upgrading city systems to be more efficient, to be more in line with real-time demand and to move into the 21st century, but it’s going to take work. It’s also going to take new technology.

Distributed ledger technology (DLT), when applied correctly, can do for a city’s infrastructure what existing technologies cannot. Where existing technologies are heavy, requiring expensive servers and a larger energy draw, distributed ledger technology is light and can be implemented on individual nodes (code environments) and directly onto things like traffic light sensors. It also allows for more oversight from a privacy perspective. The ability to bring distributed ledger technology into lightweight frameworks allows for more security and upgrades to critical infrastructure.

Benefits of smart infrastructure

The biggest impact of smart infrastructure is that it enables local governments to focus on the reason they’re there in the first place; to increase the quality of life of the local residents, bring stability and culture to local businesses, and create a welcoming and frictionless environment for tourists or visitors. Governments can create stability, streamline sources of revenue, and integrate a frictionless operational environment for people and organizations in their jurisdiction.

Consider transportation infrastructure. A lot of revenue in cities and states comes from things like tolls and roadside parking, and of course taxes. States control the highways, interstates, and tolling infrastructure commonly through collaboration with service providers. Cities control the local roadside and passthrough streets and the revenue accrued through parking solutions. With the pandemic, these resources have dried up due to people staying at home, social distancing, using less public transit and working remotely.

This now offers an opportunity for an expanded example of the desire to understand the transportation flow. If cities had more real time insights into this, they’d be able to understand the demand and have a more fluidly flowing traffic condition. This can be done through new technologies such as what are seen deployed in Singapore like green link determinings systems, parking guidance systems, and expressway monitoring systems allowing for enhanced traffic awareness and guidance.

There are also keen ways to incentivize traffic guidance while bringing stability to local small and medium businesses throughout cities such as using parking guidance systems to enable local businesses to offer discounts for parking nearby.

An open transportation grid (in the sense of data points gathered for streamlining and managing) can create smoother traffic patterns in cities with smaller road grids. Transportation centers could communicate with delivery services, understanding their routes and setting up parking reservation windows. Traffic flow could be managed so that delivery services are able to get in and out without causing back-ups on tight, busy roads.

Another offering of smart infrastructure can be seen with cross border connections for transportation of goods and services. The ownership of infrastructure in the U.S. is highly fragmented; with cities owning local and neighborhood roadsides, and states owning highways and interstates. This also means that the infrastructure supporting this is highly distributed, because each entity has to have it’s own systems in place to support their infrastructure, typically using different solutions, services and data structures.



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Apple on the hook for €10M in Italy, accused of misleading users about iPhone water resistance

Apple’s marketing of iPhones as ‘water resistant’ without clarifying the limits of the feature and also having a warranty that excludes cover for damage by liquids has got the company into hot water in Italy.

The Italian competition authority (AGCM) has informed the tech giant of an intent to fine it €10 million for commercial practices related to the marketing and warranty of a number of iPhone models since October 2017, starting with the iPhone 8 through to the iPhone 11, following an investigation into consumer complaints related to its promotion of water resistance and subsequent refusal to cover the cost of repairs caused by water damage.

In a document setting out the AGCM’s decision dated towards the end of October — which was made public today (via Reuters) — the regulator concludes Apple violated the country’s consumer code twice because of what it characterizes as “misleading” and “aggressive” commercial practices.

Its investigation found Apple’s iPhone marketing tricked consumers into believing the devices were impermeable to water, rather than merely water resistant — with the limitations of the feature not given enough prominence in ads. While a disclaimer stating that Apple’s warranty excludes damage by liquids was deemed an aggressive attempt to circumvent consumer rights obligations — given its heavy promotion of the devices as water resistant.

Apple places a liquid contact indicator inside iPhones, which changes from white or silver to red on contact with liquid, and checking the indicator is a standard step undertaken by its repair staff.

The AGCM report cites examples of consumers who’s iPhone had taken a “short dive” in the sea being refused cover. Another complainant had been washing their device under the tap — which Apple deemed improper use.

A third reported that their one-month old iPhone XR stopped working after coming into contact with water. Apple told them they must buy a new device — albeit at a subsidized price.

While an iPhone XS user, with a one-year old handset who reported it had never come into contact with water was refused coverage by Apple support who said it had, complained to the regulator there’s no way for a consumer to prove their device was not immersed in water for more than the length of time and depth to which Apple’s small print specifies it has water resistance.

We’ve reached out to Apple for comment on the AGCM’s findings.

The tech giant has 60 days from the date it was notified of the regulator’s intent to fine to appeal the decision.

The size of the penalty is well under half of the operating profit the regulator says Apple’s Italian operation made in the year September 2018 to September 2019, when it note it recorded revenues on its sales and services of €58,652,628; and an operating profit of €26,918,658.

Two years ago Italy’s competition watchdog also fined Apple and Samsung around $15M for forcing updates on consumers that may slow or break their devices. While, this February, France fined Apple $27 million for capping the OS performance of iPhones with older batteries.

Apple has also faced much larger penalties from competition authorities elsewhere in Europe — including being notified of a $1.2BN fine by France’s competition authority in March this year, which accused the tech giant of operating a reseller cartel along with two wholesale distribution partners, Ingram Micro and Tech Data.

Apple also had to stump up as much as €500M in back taxes demanded by French authorities last year.

While some $15BN from Apple’s European HQ is sitting in an escrow account to cover a 2016 European Commission ‘State Aid’ charge that it illegally benefited from corporate tax arrangements in Ireland between 2003 and 2014.

In July Apple and Ireland won the first round of an appeal against the charge. But the Commission filed an appeal in September — meaning the case will go up to the CJEU, likely adding years more of legal wrangling.

EU lawmakers are continuing to work on pushing for global reform of digital taxation, while some Member States push on with their own digital taxes.



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UK shrinks timetable for telcos to stop installing 5G kit from Huawei

The UK government has squeezed the timetable for domestic telcos to stop installing 5G kit from Chinese suppliers, per the BBC, which reports that the deadline for installation of kit from so-called ‘high risk’ vendors is now September.

It had already announced a ban on telcos buying kit from Huawei et al by the end of this year — acting on national security concerns attached to companies that fall under the jurisdiction of Chinese state surveillance laws. But, according to the BBC, ministers are concerned carriers could stockpile kit for near-term installation to create an optional buffer for themselves since it has allowed until 2027 for them to remove such kit from existing 5G networks. Maintaining already installed equipment will also still be allowed up til then.

A Telecommunications Security Bill which will allow the government to identify kit as a national security risk and ban its use in domestic networks is slated to be introduced to parliament tomorrow.

Digital secretary Oliver Dowden told the BBC he’s pushing for the “complete removal of high-risk vendors”.

In July the government said changes to the US sanction regime meant it could no longer manage the security risk attached to Chinese kit makers.

The move represented a major U-turn from the policy position announced in January — when the UK said it would allowed Chinese vendors to play a limited role in supplying domestic networks. However the plan faced vocal opposition from the government’s own back benches, as well as high profile pressure from the US — which has pushed allies to expel Huawei entirely.

Alongside policies to restrict the use of high risk 5G vendors the UK has said it will take steps to encourage newcomers to enter the market to tackle concerns that the resulting lack of suppliers introduces another security risk.

Publishing a supply chain diversification strategy for 5G today, Dowden warns that barring “high risk” vendors leaves the country “overly reliant on too few suppliers”.

“This 5G Diversification Strategy is a clear and ambitious plan to grow our telecoms supply chain while ensuring it is resilient to future trends and threats,” he writes. “It has three core strands: supporting incumbent suppliers; attracting new suppliers into the UK market; and accelerating the development and deployment of open-interface solutions.”

The government is putting an initial £250 million behind the 5G diversification plan to try to build momentum for increasing competition and interoperability.

“Achieving this long term vision depends on removing the barriers that prevent new market entrants from joining the supply chain, investing in R&D to support the accelerated development and deployment of interoperable deployment models, and international collaboration and policy coordination between national governments and industry,” it writes.

In the short to medium term the government says it will proritize support for existing suppliers — so the likely near term beneficiary of the strategy is Finland’s Nokia.

Though the government also says it will “seek to attract new suppliers to the UK market in order to start the process of diversification as soon as possible”.

“As part of our approach we will prioritise opportunities to build UK capability in key areas of the supply chain,” it writes, adding: “As we progress this activity we look forward to working with network operators in the UK, telecoms suppliers and international governments to achieve our shared goals of a more competitive and vibrant telecoms supply market.”

We’ve reached out to Huawei for comment on the new deadline for UK carriers to stop installing its 5G kit.

The company has continued to reject security concerns attached to its business.



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Gartner: Q3 smartphone sales down 5.7% to 366M, slicing Covid-19 declines in Q1, Q2

We are now into the all-important holiday sales period, and new numbers from Gartner point to some recovery underway for the smartphone market as vendors roll out a raft of new 5G handsets.

Q3 smartphone figures from the analysts published today showed that smartphone unit sales were 366 million units, a decline of 5.7% globally compared to the same period last year. Yes, it’s a drop; but it is still a clear improvement on the first half of this year, when sales slumped by 20% in each quarter, due largely to the effects of Covid-19 on spending and consumer confidence overall.

That confidence is being further bolstered by some other signals. We are coming out of a relatively strong string of sales days over the Thanksgiving weekend, traditionally the “opening” of the holiday sales cycle. While sales on Thursday and Black Friday were at the lower end of predicted estimates, they still set records over previous years. With a lot of tech like smartphones often bought online, this could point to stronger numbers for smartphone sales as well.

On top of that, last week IDC — which also tracks and analyses smartphones sales — published a report predicting that sales would grow 2.4% in Q4 compared to 2019’s Q4. Its take is that while 5G smartphones will drive buying, prices still need to come down on these newer generation handsets to really see them hit with wider audiences. The average selling price for a 5G-enabled smartphone in 2020 is $611, said IDC, but it thinkgs that by 2024 that will come down to $453, likely driven by Android-powered handsets, which have collectively dominated smartphone sales for years.

Indeed, in terms of brands, Samsung, with its Android devices, continued to lead the pack in terms of overall units, with 80.8 million units, and a 22% market share. In fact, the Korean handset maker and China’s Xiaomi were the only two in the top five to see growth in their sales in the quarter, respectively at 2.2% and 34.9%. Xiaomi’s numbers were strong enough to see it overtake Apple for the quarter to become the number-three slot in terms of overall sales rankings. Huawei just about held on to number two. See the full chart further down in this story with more detail.

Also worth noting: overall mobile sales — a figure that includes both smartphones and feature phones — were down 8.7% 401 million units. That underscores not just how few feature phones are selling at the moment (smartphones can often even be cheaper to buy, depending on the brands involved or the carrier bundles), but also that those less sophisticated devices are seeing even more sales pressure than more advanced models.

Smartphone slump: it’s not just Covid-19

It’s worth remembering that even before the global health pandemic, smartphone sales were facing slowing growth. The reasons: after a period of huge enthusiasm from consumers to pick up devices, many countries reached market penetration. And then, the latest features were too incremental to spur people to sell up and pay a premium on newer models.

In that context, the big hope from the industry has been 5G, which has been marketed by both carriers and handset makers as having more data efficiency and speed than older technologies. Yet when you look at the wider roadmap for 5G, rollout has remained patchy, and consumers by and large are still not fully convinced they need it.

Notably, in this past quarter, there is still some evidence that emerging/developing markets continue to have an impact on growth — in contrast to new features being drivers in penetrated markets.

“Early signs of recovery can be seen in a few markets, including parts of mature Asia/Pacific and Latin America. Near normal conditions in China improved smartphone production to fill in the supply gap in the third quarter which benefited sales to some extent,” said Anshul Gupta, senior research director at Gartner, in a statement. “For the first time this year, smartphone sales to end users in three of the top five markets i.e., India, Indonesia and Brazil increased, growing 9.3%, 8.5% and 3.3%, respectively.”

The more positive Q3 figures coincide with a period this summer that saw new Covid-19 cases slowing down in many places and the relaxation of many restrictions, so now all eyes are on this coming holiday period, at a time when Covid-19 cases have picked up with a vengeance, and with no rollout (yet) of large-scale vaccination or therapeutic programs. That is having an inevitable drag on the economy.

“Consumers are limiting their discretionary spend even as some lockdown conditions have started to improve,” said Gupta of the Q3 numbers. “Global smartphone sales experienced moderate growth from the second quarter of 2020 to the third quarter. This was due to pent-up demand from previous quarters.”

Digging into the numbers, Samsung has held on to its top spot, although its growth was significantly less strong in the quarter. Even with that slump, Samsung is still a long way ahead.

That is in part because number-two Huawei, with 51.8 million units sold, was down by more than 21% since last year. It has been having a hard time in the wake of a public relations crisis after sanctions in the US and UK, due to accusations that its equipment is used by China for spying. (Those UK sanctions, indeed, have been brought up in timing, just as of last night.)

That also led Huawei earlier this month to confirm the long-rumored plan to sell off its Honor smartphone division. That deal will involve selling the division, reportedly valued at around $15 billion, to a consortium of companies.

It will be interesting to see how Apple’s small decline of 0.6% to 40.6 million units to Xiaomi’s 44.4 million, will shift in the next quarter, on the back of the company launching a new raft of iPhone 12 devices.

“Apple sold 40.5 million units in the third quarter of 2020, a decline of 0.6% as compared to 2019,” said Annette Zimmermann, research vice president at Gartner, in a statement. “The slight decrease was mainly due to Apple’s delayed shipment start of its new 2020 iPhone generation, which in previous years would always start mid/end September. This year, the launch event and shipment start began 4 weeks later than usual.”

Oppo, which is still not available through carriers or retail partners in the US, rounded out the top five sellers with just under 30 million phones sold. The fact that it and Xiaomi do so well despite not really having a phone presence in the US is an interesting testament to what kind of role the US plays in the global smartphone market: huge in terms of perception, but perhaps less so when the chips are down.

“Others” — that category that can take in the long tail of players who make phones, continues to be a huge force, accounting for more sales than any one of the top five. That underscores the fragmentation in the Android-based smartphone industry, but all the same, its collective numbers were in decline, a sign that consumers are indeed slowly continuing to consolidate around a smaller group of trusted brands.

Vendor 3Q20

Units

3Q20 Market Share (%) 3Q19

Units

3Q19 Market Share (%) 3Q20-3Q19 Growth (%)
Samsung 80,816.0 22.0 79,056.7 20.3 2.2
Huawei 51,830.9 14.1 65,822.0 16.9 -21.3
Xiaomi 44,405.4 12.1 32,927.9 8.5 34.9
Apple 40,598.4 11.1 40,833.0 10.5 -0.6
OPPO 29,890.4 8.2 30,581.4 7.9 -2.3
Others 119,117.4 32.5 139,586.7 35.9 -14.7
Total 366,658.6 100.0 388,807.7 100.0 -5.7

Source: Gartner (November 2020)

 



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Sunday, November 29, 2020

This Week in Apps: Snapchat clones TikTok, India bans 43 Chinese apps, more data on App Store commission changes

Welcome back to This Week in Apps, the TechCrunch series that recaps the latest in mobile OS news, mobile applications, and the overall app economy.

The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People now spend three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.

This week, we’re digging into more data about how the App Store commission changes will impact developers, as well as other top stories, like Snapchat’s new Spotlight feed and India’s move to ban more Chinese apps from the country, among other things.

We also have our weekly round-up of news about platforms, services, privacy, trends, and other headlines.

Top Stories

More on App Store Commissions

Last week, App Annie confirmed to TechCrunch around 98% of all iOS developers in 2019 (meaning, unique publisher accounts) fell under the $1 million annual consumer spend threshold that will now move App Store commissions from a reduced 15% to the standard 30%. The firm also found that only 0.5% of developers were making between $800K and $1M; only 1% were in $500K-$800K range; and 87.7% made less than $100K.

This week, Appfigures has compiled its own data on how Apple’s changes to App Store commissions will impact the app developer community.

According to its findings, of the 2M published apps on the App Store, 376K apps are a paid download, have in-app purchases, or monetize with subscriptions. Those 376K apps are operated by a smaller group of 124.5K developers. Of those developers, only a little under 2% earned more than $1M in 2019. This confirms App Annie’s estimate that 98% of all developers earned under the $1M threshold.

Image Credits: Appfigures

The firm also took a look at companies above the $1M mark, and found that around 53% were games, led by King (of the Candy Crush titles). After a large gap, the next largest categories in 2019 were Health & Fitness, Social Networking, Entertainment, then Photo & Video.

Of the developers making over $1M, the largest percentage — 39% — made between $1M and $2.5M in 2019.

Image Credits: Appfigures

The smallest group (1.5%) of developers making more than $1M is the group making more than $150M. These accounted for 29% of the “over $1M” crowd’s total revenue. And those making between $50M and $150M accounted for 24% of the revenue.

Image Credits: Appfigures

AppFigures also found that of those making less than $1M, most (>97%) fell into the sub $250K category. Some developes were worried about the way Apple’s commission change system was implemented — that is, it immediately upon hitting $1M and only annual reassessments. But there are so few developers operating in the “danger zone” (being near the threshold), this doesn’t seem like a significant problem. Read More.

Snapchat takes on TikTok

After taking on TikTok  with music-powered features last month, Snapchat this week launched a dedicated place within its app where users can watch short, entertaining videos in a vertically scrollable, TikTok-like feed. This new feature, called Spotlight, will showcase the community’s creative efforts, including the videos now backed by music, as well as other Snaps users may find interesting. Snapchat says its algorithms will work to surface the most engaging Snaps to display to each user on a personalized basis. Read More

India bans more Chinese apps

India, which has already banned at least 220 apps with links to China in recent months, said on Tuesday it was banning an additional 43 Chinese apps, again citing cybersecurity concerns. Newly banned apps include short video service Snack Video, e-commerce app AliExpress, delivery app Lalamove, shopping app Taobao Live, business card reader CamCard, and others. There are now no Chinese apps in the top 500 most-used apps in India, as a result. Read More.

Weekly News

Platforms

  • Apple’s App Store Connect will now require an Apple ID with 2-step verification enabled.
  • Apple announces holiday schedule for App Store Connect. New apps and app updates won’t be accepted Dec. 23-27 (Pacific Time).
  • SKAdNetwork 2.0 adds Source App ID and Conversion Value. The former lets networks identify which app initiated a download from the App Store and the latter lets them know whether users who installed an app through a campaign performed an action in the app, like signing up for a trial or completing a purchase.
  • Apple rounded up developer praise for its App Store commission change. Lending their names to Apple’s list: Little 10 Robot (Tots Letters and Numbers), Broadstreet (Brief), Foundermark (Friended), Shine, Lifesum, Med ART Studios (Sprout Fertility Tracker), RevenueCat, OK Play, SignEasy, Jump Rope, Wine Spectator, Apollo for Reddit, SwingVision Tennis, Cinémoi.

Services

  • Fortnite adds a $12/mo subscription offering a full season battle pass, 1,000 monthly bucks and a Crew Pack featuring an exclusive outfit bundle. More money for Apple to miss out on, I guess.
  • 14 U.S. states plus Washington D.C. have now adopted COVID-19 contact tracing apps. CA and other states may release apps soon. Few in the U.S. have downloaded the apps, however, which limits their usefulness. 
  • Samsung’s TV Plus streaming TV service comes to more Galaxy phones

Security & Privacy

  • Apple’s senior director of global privacy, Jane Horvath, in a letter to the Ranking Digital Rights organization, confirms App Tracking Transparency feature will arrive in 2021. The feature will allow users to disable tracking between apps. The letter also slams Facebook for collecting “as much data as possible” on users.
  • Baidu’s apps banned from Google Play, Baidu Maps and the Baidu App, were leaking sensitive user data, researchers said. The apps had 6M U.S. users and millions more worldwide.

Apps in the News

Trends

Image Credits: Sensor Tower

  • U.S. Brick-and-mortar retail apps saw 27% growth in first three quarters of 2020, or nearly double the growth of online retailer apps (14%), as measured by new installs. Top apps included Walmart, Target, Sam’s Club, Nike, Walgreens, and The Home Depot.
  • App Annie forecast estimates shoppers will spend over 110M hours in (Android) mobile shopping apps this holiday season.
  • PayPal and Square’s Cash app have scored 100% of the newly-issued supply of bitcoins, report says.
  • All social media companies now look alike, Axois argues, citing Twitter’s Fleets and Snap’s TikTok-like feature as recent examples.

Funding and M&A

  • CoStar Group, a provider of commercial real estate info and analytics, acquires Homesnap’s platform and app for $250M to move into the residential real estate market.
  • Remote work app Friday raises $2.1M seed led by Bessemer Venture Partners
  • Stories-style Q&A app F3 raises $3.9M. The team previously founded Ask.fm.
  • Edtech company Kahoot acquires Drops, a startup whose apps help people learn languages using games, for $50M.
  • Mobile banking app Current raises $131M Series C, led by Tiger Global Management.
  • Square buys Credit Karma’s tax unit, Credit Karma Tax, for $50M in cash.



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Saturday, November 28, 2020

How Ryan Reynolds and Mint Mobile worked without becoming the joke

In the past decade, celebrity interest and investment in tech companies has significantly increased. But not all celebrity investments are created equally. Some investors, like Ashton Kutcher, have prioritized the VC pursuits. Some have invested casually without getting overly involved. Others have used their considerable platforms to market their portfolio to varying degrees of success.

It’s been a little over a year since Ryan Reynolds bought a majority stake in Mint Mobile, a deal that has already had a dramatic impact on the the MVNO (mobile virtual network operator).

The four-year-old company has seen a tremendous amount of growth, boosting revenue nearly 50,000% in the past three years. However, the D2C wireless carrier has seen its highest traffic days on the backs of Reynolds’ marketing initiatives and announcements.

There is a long history of celebrities getting involved with brands, either as brand ambassadors or ‘Creative Directors’ without much value other than the initial press wave.

Lenovo famously hired Ashton Kutcher as a product engineer to help develop the Yoga 2 tablet, on which I assume you are all reading this post. Alicia Keys was brought on as BlackBerry’s Global Creative Director, which felt even more convoluted a partnership than Lady Gaga’s stint as Polaroid’s Creative Director. That’s not to say that these publicity stunts necessarily hurt the brands or the products (most of the time), but they probably didn’t help much, and likely cost a fortune.

And then there are the actual financial investments, in areas where celebrities fundamentally understand the industry, that still didn’t get to ‘alpha.’

Even Jay-Z has struggled to make a music streaming service successful. Justin Bieber never really got a selfie app off the ground. Heck, not even Justin Timberlake could breathe life back into MySpace. Reynolds seemingly has an even heavier lift here. It’s hard to imagine a string of words in the English language less sexy than, “mobile virtual network operator.”

Reynolds tells TechCrunch that he viewed celebrity investments as a kind of “handicapping,” prior to the Mint acquisition.

“I’ve just sort of seen how most celebrities are doing very, very well,” he explains. “We’re generally hocking or getting behind or investing in luxury and aspirational items and projects. Then George and I had a conversation about a year-and-a-half ago, maybe longer, about what if we swerved the other way? What if he kind of got into something that was hyper practical and just forget about the sexy aspirational stuff.”

Mint isn’t Reynolds’ first entrepreneurial venture. He bought a majority stake in Portland-based Aviation Gin in 2018, which recently sold for $610 million. He also cofounded marketing agency Maximum Effort alongside George Dewey, which has made its own impact over the past several years.

Maximum Effort was founded to help promote the actor’s first Deadpool film. Reynolds and Dewey had come up with several low-budget spots to get people excited about an R-rated comic book movie. The bid appears to have worked. The film raked in $783.1 million at the box office — a record for an R-rated film that held until the 2019 release of Joker.

Maximum Effort (and Reynolds) was also behind the viral Aviation Gin spot, which poked fun at the manipulative Peloton ad that aired last year around the holidays. The same actress who portrayed a woman seemingly tortured by her holiday gift of a Peloton sits at a bar with her friends, shell-shocked, sipping a Martini.

The original ad on YouTube, not counting recirculation by the media, has more than 7 million hits. Reynolds calls it ‘fast-vertising’.

“We get to react,” he told TechCrunch. “We get to acknowledge and play with the cultural landscape in real time and react to it in real time. There isn’t any red tape to come through, because it’s just a matter of signing off on the approval. So in a way, it’s unfair, in that sense, because most big corporations, they take weeks and weeks or months to get something approved. Our budgets are down and dirty, fast and cheap.”

He explained that this type of real-time marketing is only possible because he’s the owner of Maximum Effort (and in some cases of the client businesses, as well), but because there is no red tape to cut through when a great idea presents itself.

Reynolds has brought this marketing acumen to Mint Mobile in a big way. Last year during the Super Bowl, Reynolds took out a full page ad in The New York Times, explaining that the decision to spend $125,000 on a print ad instead of $5 million+ on a Super Bowl commercial would enable the prepaid carrier to pass the savings on to consumers.

In October, Reynolds spun Mint’s 5G launch into another light-hearted spot. He brought on the head of mobile technology to explain what 5G actually is, and after hearing the technical explanation, happily said “We may never know, so we’ll just give it away for free.”

Mint also released a holiday ad just a couple of weeks ago warning of wireless promo season, wherein large wireless carriers may try to lure customers into expensive contracts using new devices. Standing over a bear trap, Reynolds dryly states: “At Mint Mobile, we don’t hate you.”

Reynolds enjoys nearly 17 million Twitter followers and more than 36 million Instagram followers. He uses both platforms to promote his various brands without alienating his followers. Moreover, he doesn’t exclusively promote his brands on social media, but weaves in his own funny personal commentary or gives followers a peek into his marriage with Blake Lively, which we can all agree is #relationshipgoals.

Mint Mobile partners exclusively with T-Mobile to provide service, and unlike some other MVNOs, it uses a direct-to-consumer model, foregoing any physical footprint. Plans start at $15/month and top out at $30/month. CMO Aron North says that Reynolds’ ownership and involvement with Mint Mobile is “absolutely critical.”

“Ryan is an A plus plus celebrity, and he’s very funny and entertaining and engaging,” said North. “His reach has given us a much bigger platform to speak on. I would say he is absolutely critical in our success and our growth.”

We asked Reynolds if he has any specific plans for further tech investment, or if there are any trends he’s keeping an eye on. He explained that his motivations are not purely capitalistic.

“I’m really focused on community and bringing people together,” said Reynolds. “We think it’s super cool to bring people together, particularly in a world that is very divisive. Even in our marketing, we try to find ways to have huge cultural moments without polarizing people without dividing people without saying one thing is wrong.”

In one of the company’s more notable recent spots, Reynolds enlisted the help of iconic comedian, Rick Moranis. It was an impressive coup, given the actor’s seeming retreat from the public eye, turning down two separate Ghostbusters film reboots.

“It’s funny what happens when you just ask,” says Reynolds. “I explained that people genuinely miss him and his performances and his energy. And he, for whatever reason, said yes, and the next thing I know, six days later, we were out of there in 15, 20 minutes and we shot our spot.”

Of course, it didn’t escape the internet’s notice that two well-known Canadian actors were standing in a field, selling a U.S.-only wireless service.

“I would love to see [Mint] in Canada,” Reynolds says. “There’s a Big Three here that’s challenging to crack. I don’t pretend to know the telecom business well enough to say why, how or what the path forward would be there. I see basically a tsunami of feedback from Canada, asking ‘why can’t we have this here?’ I think it’s sexy. It’s pragmatic and sexy. That’s why I got involved with it.”



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Tuesday, November 24, 2020

Proxyclick visitor management system adapts to COVID as employee check-in platform

Proxyclick began life by providing an easy way to manage visitors in your building with an iPad-based check-in system. As the pandemic has taken hold, however, customer requirements have changed, and Proxyclick is changing with them. Today the company announced Proxyclick Flow, a new system designed to check in employees during the time of COVID.

“Basically when COVID hit our customers told us that actually our employees are the new visitors. So what you used to ask your visitors, you are now asking your employees — the usual probing question, but also when are you coming and so forth. So we evolved the offering into a wider platform,” Proxyclick co-founder and CEO Gregory Blondeau explained.

That means instead of managing a steady flow of visitors — although it can still do that — the company is focusing on the needs of customers who want to open their offices on a limited basis during the pandemic, based on local regulations. To help adapt the platform for this purpose, the company developed the Proovr smartphone app, which employees can use to check in prior to going to the office, complete a health checklist, see who else will be in the office and make sure the building isn’t over capacity.

When the employee arrives at the office, they get a temperature check, and then can use the QR code issued by the Proovr app to enter the building via Proxyclick’s check-in system or whatever system they have in place. Beyond the mobile app, the company has designed the system to work with a number of adjacent building management and security systems so that customers can use it in conjunction with existing tooling.

They also beefed up the workflow engine that companies can adapt based on their own unique entrance and exit requirements. The COVID workflow is simply one of those workflows, but Blondeau recognizes not everyone will want to use the exact one they have provided out of the box, so they designed a flexible system.

“So the challenge was technical on one side to integrate all the systems, and afterwards to group workflows on the employee’s smartphone, so that each organization can define its own workflow and present it on the smartphone,” Blondeau said.

Once in the building, the systems registers your presence and the information remains on the system for two weeks for contact tracing purposes should there be an exposure to COVID. You check out when you leave the building, but if you forget, it automatically checks you out at midnight.

The company was founded in 2010 and has raised $18.5 million. The most recent raise was a $15 million Series B in January.



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