Crime as a business model

Have you considered that yet? Have you considered that turning towards the criminal side of revenue (and additional spiking profits) you could gain a bundle? That question came to mind when I saw ‘Apple and Samsung fined for deliberately slowing down phones‘. The guardian (at https://www.theguardian.com/technology/2018/oct/24/apple-samsung-fined-for-slowing-down-phones) gives us: “Apple and Samsung are being fined €10m and €5m respectively in Italy for the “planned obsolescence” of their smartphones“, So when we see that Apple got a €10m for their application of creative endeavours. Now consider that Apple makes about €450 per iPhone, or €625 after all the tax write-offs and other offsets that they can legally employ. So in all, to break even Apple required the sale of 16,000 phones just to break even on that fine. Now look at the numbers from Statista (at https://www.statista.com/statistics/804398/us-iphone-sales-by-model/). There we see that the latest three models model 8, model 8 plus and model X represented over 60% of their sales share up to December 2017 and 54% up to June 2018. Now consider that this represents 41.03, 46.68, 77.32 and 52.22 million units. So the stage is close to 60% of 88 million units (almost 53 million units), as well as 54% of 129.5 million units giving us almost 70 million units. So there we have it. The stage where the means to sell 123 million iPhones through what the court is seen as deceptive conduct gets a fine that amounts to 16,000 units. A fine received that represents a mere 0.013% of their cost of doing business. How much of a joke does it need to be before we see proper legal reprimanding large corporations? The governments will not properly tax them; the legal institutions will not properly fine them. The fact that the people do not to a much larger degree realise that crime is the only way to pay your bills is basically beyond me. And this is not even including the latest model iPhone which is a lot more expensive (the cost of making one is likely to be equally expensive though). That whilst Samsung and Apple are seen as the only two bad guys seems not entirely correct. Because if Samsung (an Android phone) has it, I feel certain that other Android phones might have a similar setting in play (speculated, not proven or documented), so it is not merely Apple with its IOS. Yet the stage of Apple is now not how they got rich, we see that their unscrupulous practices is an optional the reason why they are the richest company on the planet, and governments are letting them get away with it. When a criminal is allowed to keep 99.987% of their ill-gotten gains, why not merely become a criminal? I myself send my resume to the GRU (a Russian punitive monitoring government corporation relying on creative solutions), for the mere reason that if I can do a better job than Igor Valentinovich Korobov, why not? Not sure if they are allowing an Australian to run their military intelligence operations, but hey! If Apple can think outside of the ethical box, than so can I.

But this is not about me; this is about a growing amount of corporations looking to stage retail growth. Even as we see that this is going on in many retail segments, The path pushed onto people in places like gaming where at the mere saving of $15 Microsoft gave its players an Xbox One (and Xbox One X) with merely 50% of its capacity. Yes as I calculated it for consumers the difference was $15 to get twice the storage, it was that bad and the media trivialised it for the longest of times. So it is not a surprise that 70% of the life sales cycle of the Microsoft consoles was surpassed by Nintendo with its Switch in 15 months, the most powerful console in the world (and initially its less powerful brother) has been around since June 2014, and in 15 months the bulk of all sales is close to being equalled by the weakest console of the three large players. Yet the issue is not that Microsoft had a bad idea, they have had plenty of those. When a console maker knowingly and willingly undercharges a system, is that not deceptive conduct too? The problem is to prove it. Yet when we realise that a 1TB drive gives you less than 1,000 GB, merely because of the operating system (which makes perfect sense). Some give that reserved space to approximately 140GB leaving you with 860GB. Now consider that games like HALO5 and Gears of War 4 are each 100GB, Forza Horizons 4 is said to be 95GB, that gives us 34% for these three games alone and we are already getting the news that Fallout 76 and Red Dead Redemption 2 will be massive too, as are AC Origin and AC Odyssey. So we are looking at an optional 76% filled hard drive with these 7 games. Seven games to fill the drive. OK, I am the first one to admit that not all games are this big. The Lego games are Tiny in comparison, many other games like the EA sports games are between 38-45GB (normal edition) I did not find reliable information on how much extra the 4K part is, but usually the size doubles. So at this point, when that hits you, can we consider (not agree, merely consider) that Microsoft could optionally have been engaging in deceptive conduct as well? It is all around us and there is too much of it. Also, I am not ignoring Sony in this, they solved it by allowing people to change the hard drive from a 1TB to a 2TB (at their own expense), which is currently $119, so 100% more storage, which initially putting it in would have been a mere $15 difference on consumer levels. Yet the question there is did Microsoft do anything illegal or merely something really stupid? If they had allowed for personal upgrades there would have been a much larger Xbox One wave, I am certain of it. The Sony tray solution could have been equalled by the Xbox One X from Day one, giving the gamers actual value for money. That part will of course be looked at when Xbox One Scarlett comes out, which is still set (according to some sources) to 2020, yet this is not about gaming, or merely the Xbox. There is a group of people that is finally becoming savvy enough to look at what they require to have something worth their time and money. We see a growing group of people knowing what to ask on their new mobile, their new console, their new tablet and their new notebook/netbook.

So how does this relate back to the optionally ‘criminally implied through innuendo‘ business model? This is actually more important than you think. There was an additional reason for all this. You see a shop named JB Hifi (the most visible one in Australia) gives the consumer: “Across town or around the world, the new Surface Pro 6 is your perfectly light, incredibly powerful travel partner — now with the latest 8th Generation Intel® Core™ processor and up to 13.5 hours of all-day battery life.“, they even added the footnote: “Surface Pro 6battery life: Up to 13.5 hours of video playback. Testing conducted by Microsoft in August 2018 using preproduction Intel® Core™ i5, 256GB, 8 GB RAM device. Testing consisted of full battery discharge during video playback. All settings were default except: Wi-Fi was associated with a network and Auto-Brightness disabled. Battery life varies significantly with settings, usage, and other factors“, you see, TechRadar gives us another story: “Microsoft promises up to 13 hours and 30 minutes of local video playback from the new Surface Pro. That’s a lofty claim and one that our test unit failed to live up to. That being said, based on our tests of the previous model’s battery, we no doubt see a noticeable improvement. Test results came in 24% and 32% longer than the previous model at 4 hours and 3 minutes, and 6 hours and 58 minutes, respectively, this is a long way off from the “up to 13.5 hours of all-day battery life“, which is also deceptive (to some degree); you see when we look for ‘all-day battery life‘ ZDNet gives us (relating to the Samsung Note 9: “it seems that what ‘all-day battery’ means is that if you are an average or typical user, then the Note 9 should last you all day without needing a recharge, but a whole bunch of real-world factors can get in the way of that.“, this translates to the Surface Pro that you need to be able to get through the day without needing a recharge when you are an average user, when we see an initial 13.5 hours, we all would agree, yet TechRadar gives us a mere ‘6 hours and 58 minutes‘ (the longest version) which is less than a working day, especially when you are using it on your trip from and to the office (or was that the other way around). Now we get to see the other side of it all and even as the iPads are better, but not by much, it is the marketing usage of ‘all-day battery life‘ that is becoming a much greater issue, in this case (even as I concede that there are several models of the Surface Pro, also there are issues with different models and usage, places like JB Hifi uses that same setting for the Microsoft Surface Pro 6 i7 512GB, and as we acknowledge that the i7 needs more power than the i5, we see that that battery life is optionally misrepresented and it is odd that at this point Microsoft conveniently does not seem to check on how their devices are sold. When we look at The Verge, which gives us: “Thurrott reports that Microsoft CEO Satya Nadella met with Lenovo last year and quizzed the company over how it was responding to Skylake problems. “Lenovo was confused,” claims Thurrott. “No one was having any issues.” It appears Microsoft’s own problems were the result of the company’s unique approach to the Surface Book, with custom firmware and drivers. While other, more experienced, hardware makers were able to respond quickly, Microsoft’s delay impacted reliability“, this is not the end, especially when you consider that the article is a year ago and is a reflection on the ‘Leaked Microsoft memo reveals high Surface Book return rates‘, and whilst this was the Surface Pro 4, a system two generations old, we see that basic stages have not been met with better quality control and a much better information control setting. In addition, the ‘party line‘ response on battery life is as I personally see it a much larger issue that seems to be determined to sell more and hope that the consumers will not bring it back. I believe that there is a failing in the UK and Australia, a fact that is shown in the Daily Mail (at https://www.dailymail.co.uk/sciencetech/article-6233259/Microsoft-unveils-899-Surface-Pro-6-iPad-killer-alongside-new-999-Surface-Laptop-2.html), where we were treated to “The Surface Laptop 2 now gets 14.5 hours of battery life, while the Surface Pro 6 still gets a solid 13.5 hours on a single charge“, a quote that should be enough to get the Daily Mail in hot waters with a whole league of unsatisfied users and if the Daily Mail concedes that they were merely going by Microsoft numbers, it will be Microsoft taking a hot bath of people demanding that level of battery performance. Or it is entirely possible that Microsoft will claim that there was an unfortunate miscommunication between their marketing department and Annie Palmer, the Daily Mail article writer. In the end the setting should be regarded as sales through deceptive conduct and even as these two players are the most visible ones, they are not the only ones. There has been the Apple Error 53 issue, Telstra with their interpretation of ‘unlimited’ and Optus with their interpretation of DCB (Direct Carrier Billing) and the less said about my interactions with Vodaphone (aka Vodafail) the better, all whilst that list of corporations that are graduating summa cum laude on the art of miscommunications keeps on growing too.

A lot of it is only visible after a long time and after the damage is done. We all agree something needs to be done, yet when we realise that the fine is merely 0.013% of what some end up gaining, there is absolutely zero chance that this situation will be rectified within the lifespan of us, or our children, the profit margins are just too large.

for me, my interactions with Apple costed me $5599 in the end, money I did not have to spare and even as I still love my G5 PowerMac and my iPad one, I remain sceptical and cautious of anything new that Apple released after 2006, the price has been too high and I am merely 1 of one billion active Apple users, they have that much to gain by continuing on the path they currently are.

The law is seemingly slightly too flaccid to resolve the situation at present, how sad is that?

 

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1 Comment

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One response to “Crime as a business model

  1. Pingback: In the back of my mind | Lawrence van Rijn - Law Lord to be

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