Sunday, April 23, 2017

Daily Tech Snippet: Monday, April 24

  • Virtual Reality Companies Navigate ‘The Trough of Disillusionment’: Twelve months ago the Virtual Reality World Congress in Bristol, England, was a sell-out show, with over 750 attendees gawping over the latest VR hardware and production techniques. This year's event, which took place last week, attracted even more participants -- more than 1,200 over three days -- but the mood felt decidedly less upbeat. Virtual reality, it seems, has been mugged by reality. Sales of VR hardware have fallen 40 percent behind forecasts, CCS Insight, a technology research group, said in a February report. And the VR hardware that is selling has mostly been relatively inexpensive goggles that allow people to experience VR through their smartphones, such as Samsung's Gear VR and Google's Daydream, not higher-end, dedicated headsets such as those made by Sony Corp, Facebook Inc.'s Oculus and HTC Corp. Many working in VR have run up against the hard economic reality of trying to produce content for a technology that remains, at least for the moment, fairly niche. As disappointment is setting in for virtual reality, expectations are building around its less glamorous cousin, augmented reality, which is also sometimes called mixed reality because it places digitally-rendered elements in the real observed environment. In 2016, Pokemon Go, which is an augmented reality game played on smartphones, became a worldwide phenomenon. Microsoft launched its high-end AR headset, HoloLens, which has found customers mostly among industrial and business users -- such as aeronautical engineers and architects. Snap Inc.'s AR photo filters are one of the most popular features of its messaging service and Facebook has announced a big push into the field with its own AR camera filters.  Many now expect Apple Inc. to introduce an augmented reality product in the next year, which might help AR to leapfrog VR to achieve mass adoption. Technology company ABI Research says that virtual reality currently generates about 50 percent more revenue than augmented reality but that it relies heavily on hardware sales. Augmented reality, by contrast, relies more on software and in many cases can be experienced by users with their existing smartphones. ABI forecasts that AR revenues will surpass VR sales by 2019. Virtual reality true believers, like Taylor, are dismissive of the idea that AR might outrun VR as a blockbuster consumer technology. Augmented reality requires too much training for the average consumer to learn how to integrate the digital images into the real world, Taylor said. "Mixing the virtual world and the real world is less natural," he said. Simply popping on a headset and diving into a completely virtual environment is, somewhat counter-intuitively, easier, he said. ABI Research still forecasts that virtual reality device shipments will reach 110 million units by 2021 -- huge growth considering only about 6.3 million such devices were shipped last year, according to tech research company Super Data. 
  • Uber’s C.E.O. Plays With Fire: Travis Kalanick, the chief executive of Uber, visited Apple’s headquarters in early 2015 to meet with Timothy D. Cook, who runs the iPhone maker. It was a session that Mr. Kalanick was dreading. For months, Mr. Kalanick had pulled a fast one on Apple by directing his employees to help camouflage the ride-hailing app from Apple’s engineers. The reason? So Apple would not find out that Uber had been secretly identifying and tagging iPhones even after its app had been deleted and the devices erased — a fraud detection maneuver that violated Apple’s privacy guidelines.  But Apple was onto the deception, and when Mr. Kalanick arrived at the midafternoon meeting sporting his favorite pair of bright red sneakers and hot-pink socks, Mr. Cook was prepared. “So, I’ve heard you’ve been breaking some of our rules,” Mr. Cook said in his calm, Southern tone. Stop the trickery, Mr. Cook then demanded, or Uber’s app would be kicked out of Apple’s App Store. For Mr. Kalanick, the moment was fraught with tension. If Uber’s app was yanked from the App Store, it would lose access to millions of iPhone customers — essentially destroying the ride-hailing company’s business. So Mr. Kalanick acceded. In a quest to build Uber into the world’s dominant ride-hailing entity, Mr. Kalanick has openly disregarded many rules and norms, backing down only when caught or cornered. He has flouted transportation and safety regulations, bucked against entrenched competitors and capitalized on legal loopholes and gray areas to gain a business advantage. In the process, Mr. Kalanick has helped create a new transportation industry, with Uber spreading to more than 70 countries and gaining a valuation of nearly $70 billion, and its business continues to grow. But the previously unreported encounter with Mr. Cook showed how Mr. Kalanick was also responsible for risk-taking that pushed Uber beyond the pale, sometimes to the very brink of implosion. Crossing that line was not a one-off for Mr. Kalanick. According to interviews with more than 50 current and former Uber employees, investors and others with whom the executive had personal relationships, Mr. Kalanick, 40, is driven to the point that he must win at whatever he puts his mind to and at whatever cost — a trait that has now plunged Uber into its most sustained set of crises since its founding in 2009.


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