Tech Today w/ Ken May

Say you’re a misanthrope and you’re afraid of humans. What to do? Well, you could cower in the dark when people ring your doorbell or you could laugh derisively at their smug faces in the screen of your iPhone. I’m going for the derisive laughter. This DIY Arduino project involves a simple circuit, a webcam, and a few API calls to PushingBox to enable a truly enjoyable derisive experience. The system works by pushing images grabbed by the webcam through PushingBox to an app like Prowl or Pushme.to . When the doorbell is pressed, it sends a serial signal to the Arduino board which in turn notifies the various services. The webcam picture then gets sent over to you so you can decide whether to let whoever is outside in. It’s probably a little more complex than it needs to be, but if you’re totally into watching the world pass you by it’s a great solution and a fun weekend project. Project Page

A color Kindle might be on the way. Industry watchdog publication, Digitimes, says Amazon will launch one in the second half of this year. The report goes on to state that the new models will forgo the traditional infrared touchpanels used in the current model for multitouch capacitive panels. Digitimes expects Amazon to adapt E Ink’s upcoming color EPD panels in their ereaders so don’t expect LCD displays. This move, if true, would put the Kindle in a strange spot between a full-scale tablet and a tradition b/w ereader. Amazon has so far been very successful in marketing the Kindle’s grayscale screen against full color tablets like the iPad. The Kindle Fire showed that there is a demand for color ereaders as well, though. A color eink display might be the start of a larger content push from Amazon. Magazines are a hard sell on grayscale ereaders right now. The publications lose all the flash they work so hard to curate. Amazon knows this. However, at $200, the Kindle Fire is still out of reach for a lot of consumers and Amazon’s primary goal with its Kindle line is selling content, not hardware. A color eink Kindle would likely allow Amazon to make a big push into digital zines and perhaps even textbooks. Color eink screens have been floating around industry tradeshows for several years now. But they have so far been unable to make it to the market. If this report pans out, which seems likely, Amazon might release the first color eink ereader — if not, the company always has the glowing Kindle that we know is on tap.

When a suspected al-Qaeda member was arrested in May of 2011 in Berlin, he was found with a memory card with a password-protected folder—and the files within it were hidden. But, as the German magazine Zeit reports , computer forensics experts from the German Federal Criminal Police (BKA) eventually uncovered its contents—what appeared to be a pornographic video called “KickAss.” Within that video, they discovered 141 separate text files, containing what officials claim are documents detailing al-Qaeda operations and plans for future operations—among them, three entitled “Future Works,” “Lessons Learned,” and “Report on Operations.” So just how does one store a terrorist’s home study library in a pirated porn video file? In this case the files had been hidden (unencrypted) within the video file through a well-known approach for concealing messages in plain sight: steganography. Read the comments on this post

Barnes & Noble has found a new, major partner in its fight to get an edge over Amazon and Apple in the market for e-books and the devices being used to consume them: it is teaming up with Microsoft in what the two are calling a strategic partnership, name yet to be determined. It will come in the form of a new subsidiary of B&N that will include all of its Nook business as well as its educational College business. Microsoft is making a $300 million investment in the subsidiary, valuing the company at $1.7 billion in exchange for around 17.6 percent equity in the subsidiary. The news leaves the door open for B&N to eventually spin these off into a separate business altogether — or even sell them to Microsoft. And it leaves a load of questions about what B&N will do next with the Nook, which is currently built on a forked version of Google’s Android platform. The new company, referred to for the moment as Newco, will contain B&N’s digital business, as well as its College division. While Microsoft will take 17.6 percent, B&N will own 82.4 percent of the venture. This is a key way of getting more content on to the Microsoft platform — specifically e-books content to ensure that its Windows 8 tablets will be able to compete not only against the best-selling iPad but also the Kindle Fire from Amazon, along with the rest of the company’s e-readers. The Kindle Fire has stolen a march among Android tablet makers and part of the compelling offer is not only the low price ($199) but also the fact that it contains so much content, including seamless access to all of Amazon’s e-book offerings. This is also a progression — a very big one — of the funding etudes that Microsoft has been making to developers to make sure they are making apps for the Windows Phone platform, a way of getting more content on its platforms, which, it can be argued, may have come too late to the market. The first product to come out of the door? A Nook application for Windows 8, the companies say. And given that education has been one of Apple’s bigger pushes this year , and the obvious and close links between education and e-reading, it’s not too surprising to see that B&N has also put its College division into this subsidiary. Microsoft, too, has been courting the education market — making its biggest-ever cloud-services deal in the education sector. Nevertheless they have a long road ahead of them. In January, Apple noted that there were already 20,000 educational apps for iOS and that there were already 1.5 million devices deployed in schools, numbers that will inevitably have grown in the last 4-5 months with the launch of the new iPad and numerous initiatives to spread the tablet in the educational sector. And there is a legal twist to the deal, too: the two companies say they have definitely sorted out their patent litigation now: “Moving forward, Barnes & Noble and Newco will have a royalty-bearing license under Microsoft’s patents for its NOOK eReader and Tablet products,” the two write in the release below. If Microsoft doesn’t use this as an opportunity of possibly persuading B&N to swap over to Windows 8 for a version of the Nook, it will also give it a very interesting inroad into developing more for Android. As for B&N and the future of these products… this deal looks like it could potentially pave the way for B&N to spin off this business into its own standalone operation, if not into the waiting arms of Microsoft itself — long speculated to be looking at ways of gaining a stronger foothold in the area of mobile devices to better implement its bigger strategy. The idea of a subsidiary was something that B&N had first floated back in January, when it noted that it was weighing up how best to separate its digital business to “maximize shareholder value.” There are many more questions — such as what this could mean for the company’s broader strategy for growing the market for the Nook (international being a key push that the company has yet to make, apart from some baby steps ); and how well, exactly, those products are doing for the company: IDC puts the Nook’s share of the tablet market at just 3.5 percent. The company is holding a conference call on the deal later today and we’ll update as we learn more. Full press release below. New York, NY and Redmond, WA (April 30, 2012) – Barnes & Noble Inc. (NYSE: BKS) and Microsoft (NASDAQ: MSFT) today announced the formation of a strategic partnership in a new Barnes & Noble subsidiary, which will build upon the history of strong innovation in digital reading technologies from both companies. The partnership will accelerate the transition to e-reading, which is revolutionizing the way people consume, create, share and enjoy digital content. The new subsidiary, referred to in this release as Newco, will bring together the digital and College businesses of Barnes & Noble. Microsoft will make a $300 million investment in Newco at a post-money valuation of $1.7 billion in exchange for an approximately 17.6% equity stake. Barnes & Noble will own approximately 82.4% of the new subsidiary, which will have an ongoing relationship with the company’s retail stores. Barnes & Noble has not yet decided on the name of Newco. One of the first benefits for customers will be a NOOK application for Windows 8, which will extend the reach of Barnes & Noble’s digital bookstore by providing one of the world’s largest digital catalogues of e-Books, magazines and newspapers to hundreds of millions of Windows customers in the U.S. and internationally. The inclusion of Barnes & Noble’s College business is an important component of Newco’s strategic vision. Through the newly formed Newco, Barnes & Noble’s industry leading NOOK Study software will provide students and educators the preeminent technology platform for the distribution and management of digital education materials in the market. “The formation of Newco and our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the NOOK business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments,” said William Lynch, CEO of Barnes & Noble. “Microsoft’s investment in Newco, and our exciting collaboration to bring world-class digital reading technologies and content to the Windows platform and its hundreds of millions of users, will allow us to significantly expand the business.” “The shift to digital is putting the world’s libraries and newsstands in the palm of every person’s hand, and is the beginning of a journey that will impact how people read, interact with, and enjoy new forms of content,” said Andy Lees, President at Microsoft. “Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them. We’re at the cusp of a revolution in reading.” Barnes & Noble and Microsoft have settled their patent litigation, and moving forward, Barnes & Noble and Newco will have a royalty-bearing license under Microsoft’s patents for its NOOK eReader and Tablet products. This paves the way for both companies to collaborate and reach a broader set of customers. Newco, On January 5, Barnes & Noble announced that it was exploring the strategic separation of its digital business in order to maximize shareholder value. Barnes & Noble is actively engaged in the formation of Newco, which will include Barnes & Noble’s digital and College businesses. The company intends to explore all alternatives for how a strategic separation of Newco may occur. There can be no assurance that the review will result in a strategic separation or the creation of a stand-alone public company, and there is no set timetable for this review. Barnes & Noble does not intend to comment further regarding the review unless and until a decision is made. Additional information will be contained in a Current Report on Form 8-K to be filed by Barnes & Noble. Barnes & Noble and Microsoft will host an investor call and webcast beginning at 8:30 A.M. ET on Monday, April 30, 2012. To join the webcast, please visit: www.barnesandnobleinc.com/webcasts .

Data published by comScore shows that Amazon’s Kindle Fire has emerged as the dominant Android-based tablet. At the end of February, the Kindle Fire accounted for 54 percent of all Android tablets. The next most popular Android tablet product line is Samsung’s Galaxy Tab family, which dropped from 23 percent of Android tablets in December to 15 percent in February. The success of the Fire is no surprise to those paying attention to the tablet market—as we wrote last year, there is healthy demand for a low-cost iPad alternative. Amazon can afford to offer the hardware at a lower price than its rivals because it can make up the difference in content sales. The key factors driving sales of the Fire are likely its low price point, the strength of the Kindle brand, and the breadth of the Amazon content ecosystem. Read the comments on this post

Data published by comScore shows that Amazon’s Kindle Fire has emerged as the dominant Android-based tablet. At the end of February, the Kindle Fire accounted for 54 percent of all Android tablets. The next most popular Android tablet product line is Samsung’s Galaxy Tab family, which dropped from 23 percent of Android tablets in December to 15 percent in February. The success of the Fire is no surprise to those paying attention to the tablet market—as we wrote last year, there is healthy demand for a low-cost iPad alternative. Amazon can afford to offer the hardware at a lower price than its rivals because it can make up the difference in content sales. The key factors driving sales of the Fire are likely its low price point, the strength of the Kindle brand, and the breadth of the Amazon content ecosystem. Read the comments on this post

Apple just released its second quarter financial numbers. Overall hardware sales decreased from its record previous quarter but with the notable exception of the iPods, they’re up from the same quarter a year ago. Apple sold 88% more iPhones in the quarter than it did during the same time last year. Besides the huge year-over-year increase of iPhone sales, iPad and Mac sales increased 188% and 7%, respectively. However, the iPod didn’t fare so well: Sales are down 15% over last year’s quarter. “We’re thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter,” said Tim Cook, Apple’s CEO said in a release statement today. “The new iPad is off to a great start, and across the year you’re going to see a lot more of the kind of innovation that only Apple can deliver.” These numbers are actually down from 1Q2012 where Apple shattered nearly all its previous records. In that period Apple sold 37.04M iPhones, 15.43M iPads, and 5.2M Macs. Even the iPad sold well with 15.4M in sales. But thanks to Apple’s offset financial quarters, this time period included the iPhone 4S launch and holiday sales.