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GLOBAL TECH WRAP: Three new iPhones on the way this year - analyst

Google has reported a 6.7% rise in fourth quarter profit to $US2.89 billion. "Core revenue" (including Google ads on partner sites) was up 22% to $US12.94 billion. The amount advertisers pay per click continued to drift downward, but more Ad Words were bought overall.

IBM fourth quarter profit rose 10% to to $US6.1 billion - ahead of analsyts' expectations - while evenue dropped 1% to $US29.3 billion. The profit perk up at the world's largest tech company is seen as a sign the market could be picking up.

Forbes notes analyst speculation that three new iPhones are on the way this year: A lower-cost 4.3-inch iPhone and a 4-inch iPhone 5S (both June/July) plus a 4.8-inch iPhone at the end of October. For good measure, and Apple television is tipped for Spring.

Google co-founder Sergey Brin has been spotted wearing Google Glass on the New York subway, The Guardian reports. "Google Glass" is the search giant's protype glasses that display an internet feed on part of their lenses via wi-fi. The Atlantic Wire wonders if it was a little too much of a coincidence augmented reality enthusiast Noah Zerkin happened to sit across from Sergey and Twitpic him (above). Hells no, says NBR. If it was a Google PR stunt, surely it would have been executed via the all-conquering Google+?

Twitter has put its embed function on steroids, the company revealed in a blog post today. Embedded tweets - such as @noazark's above - can now feature photos, videos and article summaries.

Microsoft is in talks to help finance the Dell buyout, says The Wall Street Journal (Dell plans to go private, it was reported last week). Microsoft would no doubt nudge the world's number three PC maker to release more tablets based on its Windows 8 software.

Micosoft will ship its Surface Pro tablet February 9 in the US. The cheaper Surface RT launched before Christmas. Still no word when either will make it to NZ.

The company that hosts Mega has seen its Nasdaq-listed shares dip today - the first full day of trading since Kim Dotcom's file sharing service launched over the weekend (Monday having been Martin Luther King Day in the US).

Washington DC-based Cogent Communications [NAS:CCOI] was down 1.49% late in the Tuesday (US time) session, outpacing a broader market decline of 0.27%.

However, it would be a stretch to say investors were taking fright - especially in comparison to the one-day 23% fall suffered by Cogent on the first day's trading after the January 2012 Megaupload shutdown (although they recovered and gained through the year; see chart).

ABOVE: Cogent 12-month Nasdaq performance. S&P Capital IQ. Click to zoom.

Congent, which has a market cap of just over $US1 billion. It was described in the Megaupload indictment as one of the world's top five providers of bandwidth and hosting services; the FBI lists a series of monthly payments to Cogent that often topped $US1 million a month for 36 servers in Washington DC and France (a big contract, if smaller than Megaupload's business with Virginia-based Carpathia, where it hosted most of its files; Carparthia was paid more than $US110 million over seven years).

Kim Dotcom told NBR ONLINE that Cogent's decision to do business with him again was a vote of confidence in his new service's business plan and legal position. He emphasised that Cogent was a listed company. 

Dotcom said although Mega is using Cogent exclusively for its launch (on undisclosed terms), it will move to a distributed model over the next few months, with hundreds of different hosts around the world.

On Sunday, the accused pirate said 500,000 signed up to Mega during the service's first 14 hours online. The rush caused overloading, which continued Tuesday morning, leading to an apology from Dotcom for what he called 'poor service quality."

ckeall@nbr.co.nz

More by Chris Keall

Comments and questions

It is skullduggery to associate Mega with the share price fall of 0.83% of Cogent.

I suggest an interesting coincidence, nothing more. The world's media has been reporting the Mega launch in quite respectful and surprisingly balanced terms, which is a little annoying for those who locally know the illegal and deceitful actions taken by the US and NZ authorities have stooped to on behalf of the US media moguls hell bent on destroying Dotcom's earlier business.

Market manipulation by racketeering cartels threatened by Mega's challenge to their IP exploitation and monopolisation of media?
As an artist and musician I welcome Dotcom's better deal for creative people and am sick and tired of politicians and public officials being bought by lobbyists to protect the exploiters of both consumers and creative people.
You question my contentions?
Look up the case of Buffy Saint Marie, blacklisted by the racketeering cartels for her championing of native rights.
How about Sir Peter Jackson having to sue to get his share for Lord of the Rings, or all of those who cannot afford to sue the companies that ripped them off?
So hats off to Mega and down with the racketeering cartels' mismanagement!

Right on, Dave. I presume you will be happy when the brilliant material you have laboured over for years and spent lots of money recording is available at zero cost (and zero income to you) via Kim's new "file-sharing" creation.

You must have plenty of D A D or dole money behind you - or do you expect Buffy and Peter to pay your bills?

Last time I looked Peter Jackson had been so cruelly expoited he was worth a few hundred million.

In reply to 'careful what you wish for', in my opinion you are defending a dysfunctional economic model based on zero sum outcomes long term.
If my art or music is shared on Mega or elsewhere copied and reproduced that is fine by me - best free advertising I could ever wish for. I have the idea that it is good to give, that giving attracts goodness and makes the world a better place.
The racketeering cartels are takers, not givers, exploiters not fair business equals. That is my contention, the one that you oppose. Perhaps you are employed as a shill by such interests?
The idea that dole money funds "lots of money recording" is as ludicrous as governments are exceedingly sparse with their dole, unlike with their corporate welfare.
As for the inanity of the comment "Peter Jackson had been so cruelly exploited", what is it you don't understand about contractual obligations?
If Jackson was contracted for a certain % and the other party deliberately did not honour that contract, thus ripping him off, that is OK by you, it would seem?
That all artists should accept racketeering corporations short changing them is your stance?
As to my finances, they are none of your business. But I am wealthy, I am healthy, I am happy and I love being creative.
How about you?

Three new iPhones is a bad move for Apple, it shows that they have run out of ideas and have entered into a spec race with Samsung. The reason Apple were at the forefront was because they were focused on the user experience not the spec sheet. Apple have a large buffer protecting them from financial disaster in the form of the App Store and the many developers who support their products. I'd be keeping my eye on movement in the app development industry.

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