Aug
20

DraftKings CEO Jason Robins is coming to Disrupt SF

In May, the U.S. Supreme Court struck down a federal law that had banned gambling on sporting events in most states. That ruling is set to unlock billions of dollars in new business opportunities for online fantasy sports sites like DraftKings.

That’s why we’re absolutely thrilled to have DraftKings CEO Jason Robins join us on stage at Disrupt SF.

DraftKings launched back in 2012 and quickly grew into a household name by offering daily and weekly fantasy sports contests across a number of sports.

In fact, as of 2017, DraftKings had roughly 8 million users, and together with its top competitor FanDuel, the two companies owned more than 90 percent of the $2.6 billion daily fantasy sports market.

In 2016, DraftKings and FanDuel announced their intention to merge, but were met with resistance from the FTC who sued to block the merger. If it had been approved, the merger would have allowed both companies to combine resources with regards to regulatory approval and advertising spend.

At the time, Robins said that DraftKings has a “growing customer base of nearly 8 million, our revenue is growing over 30% year-over-year, and we are only just beginning to take our product overseas to the billions of international sports fans we have yet to even reach.”

At Disrupt, we’ll chat with Robins about the growth of the company, DraftKings’ plans for the 2018 NFL season, and what’s in store for the company following the Supreme Court ruling.

The full agenda is here. Passes for the show are available here.

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Aug
20

1Mby1M Virtual Accelerator Investor Forum: With Amos Ben-Meir at Sand Hill Angels (Part 1) - Sramana Mitra

Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Amos Ben-Meir of Sand Hill Angels was recorded in...

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Original author: Sramana Mitra

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May
31

Uber CEO Dara Khosrowshahi speaks on repairing burned bridges left behind by Travis Kalanick, reveals he's talking to Waymo about joining Uber's network (GOOGL, GOOG)

Gecko Robotics aims to save human lives at our nation’s power plants with its wall-climbing robots. To continue doing so, the startup tells TechCrunch it has just secured $7 million from a cadre of high-profile sources, including Founders Fund, Mark Cuban, The Westly Group, Justin Kan and Y Combinator.

We first reported on the Pittsburgh-based company when co-founder Jake Loosararian came to the TechCrunch TV studios to show off his device for the camera. Back then, Gecko was in the YC Spring 2016 cohort, working with several U.S. power plants and headed toward profitability, according to Loosararian. 

You can see the original interview below:

The type of robots Gecko makes are an important part of ensuring safety in industrial and power plant facilities as they are able to go ahead of humans to check for potential hazards. The robots can climb tanks, boilers, pipelines and other industrial equipment using proprietary magnetic adhesion, ultra-sonics, lasers and a variety of sensors to inspect structural integrity, according to a company release.

While not cheap — the robots run anywhere from $50,000 to $100,000 — they are also obviously a minuscule cost compared to human life.

Gecko robot scaling the wall for a safety inspection at a power plant.

Loosararian also mentioned his technology was faster and more accurate than what is out there at the moment by using machine learning “to solve some of the most difficult problems,” he told TechCrunch.

It’s also a unique enough idea to get the attention from several seasoned investors.

“There has been virtually no innovation in industrial services technology for decades,” Founders Fund partner Trae Stephens told TechCrunch in a statement. “Gecko’s robots massively reduce facility shutdown time while gathering critical performance data and preventing potentially fatal accidents. The demand for what they are building is huge.”

Those interested can see the robots in action in the video below:

Diesel_tank_A from Gecko Robotics, Inc on Vimeo.

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May
31

An Israeli-Palestinian Harvard graduate quit his job to travel the world — and is now one of the most successful creators on Facebook

You wouldn’t expect a medical app to get its start as a Snapchat competitor. Neither did video chat startup TapTalk’s founder Onno Faber. But four years ago he was diagnosed with a rare disease called neurofibromatosis type 2 that caused tumors, leading Onno to lose hearing in one ear. He’s amongst the one in 10 people with an uncommon health condition suffering from the lack of data designed to invent treatments for their ails. And he’s now the co-founder of RDMD.

Emerging from stealth today, RDMD aggregates and analyzes medical records and sells the de-identified data to pharmaceutical companies to help them develop medicines. In exchange for access to the data, patients gets their fragmented medical records organized into an app they can use to track their treatment and get second opinions. It’s like Flatiron Health, the Google-backed cancer data startup that just got bought for $2 billion, but for rare diseases.

Now RDMD is announcing it’s raised a $3 million seed round led by Lux Capital and joined by Village Global, Shasta, Garuda, First Round’s Healthcare Coop and a ton of top healthtech angels, including Flatiron investors and board members. The cash will help RDMD expand to build out its product and address more rare diseases.

RDMD founders (from left): Nancy Yu and Onno Faber

We believe that the traditional way rare disease R&D is done needs to change,” RDMD CEO Nancy Yu tells TechCrunch. The former head of corp dev at 23andMe explains that, “There are over 7,000 rare diseases and growing, yet <5% of them have an FDA-approved therapy . . . it’s a massive problem.” 

While data infrastructure supports development of treatments for more common diseases like cancer and diabetes, rare diseases have been ignored because it’s wildly expensive and difficult to collect the high-quality data required to invent new medicines. But “RDMD generates research-grade, regulatory-grade data from patient medical records for use in rare disease drug R&D,” says Yu. The more data it can collect, the more pharma companies can do to help patients.

Trading utility for patient data

With RDMD’s app, a patient’s medical data that’s strewn across hospitals and health facilities can be compiled, organized and synthesized. Handwritten physicians’ notes and faxes are digitized with optical character recognition, structuring the data for scientific research. RDMD lays out a patients’ records in a disease-specific timeline that summarizes their data that can be kept updated, delivered to specialists for consultations or shared with their family and caregivers.

If users opt in, that data can be anonymized and provided to research organizations, hospitals and pharma companies that pay RDMD, though these patients can delete their accounts at any time. Because it’s straight from the medical records, the data is reliable enough to be regulation-compliant and research-ready. That allows it to accelerate the drug development process that’s both lucrative and life-saving. “It normally takes millions of dollars over several years to gather this type of data in rare diseases,” Yu notes. “For the first time, we have a centralized and consented set of data for use in translational research, in a fraction of the time and cost.”

So far, RDMD has enrolled 150 patients with neurofibromatosis. But the potential to expand to other rare diseases attracted a previous pre-seed round from Village Global and new funding from angels like Clover Health CEO and Flatiron board member Vivek Garipalli, Flatiron product director and GV (Google Ventures) partner Vineeta Agarwala, Twitter CTO Parag Agrawal, former 23andMe president Andy Page and the husband and wife duo of former Instagram VP of product Kevin Weil and 137 Ventures managing director Elizabeth Weil.

“Onno and Nancy realized there’s an opportunity to do in rare diseases what Flatiron has done in oncology — to aggregate clinical data from patients, and to leverage that data in clinical trials and other use cases for biotech and pharma,” says Shasta partner Nikhil Basu Trivedi. RDMD will be competing against pharma contract research organizations that incur high costs for collecting data the startup gets for free from patients in exchange for its product. Luckily, Flatiron’s exit paved the way for industry acceptance of RDMD’s model.

“The biggest risk for our company is if we lose our focus on providing real, immediate value to rare disease patients and families. Patients are the reason we are all here, and only with their trust can we fundamentally change how rare disease drug research is done,” says Yu. RDMD will have to ensure it can protect the privacy of patients, the security of data and the efficacy of its application to drug development.

Hindering this process is just one more consequence of our fractured medical records. Hopefully if startups like RDMD and Flatiron can demonstrate the massive value created by unifying medical data, it will pressure the healthcare power players to cooperate on a true industry standard.

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Aug
20

Snap Fumbles - Sramana Mitra

Early this month, social messaging service Snap (NYSE: SNAP) reported its second quarter results that beat estimates. However, the market is diappointed with the sequential decline in the number of...

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Original author: Sramana_Mitra

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Aug
20

1Mby1M Virtual Accelerator Investor Forum: With Gary Little of Canvas Ventures (Part 1) - Sramana Mitra

Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Gary Little of Canvas Ventures was recorded in...

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Original author: Sramana Mitra

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Aug
20

Tencent-backed news aggregation app Qutoutiao files for U.S. public offering

Qutoutiao, a news aggregator app backed by Tencent, has filed for an initial public offering of up to $300 million in the United States. In its F-1 form, the company, whose name means “fun headlines,” said it is the number two mobile content aggregator in China. Its main rivals are Jinri Toutiao, China’s top news aggregator, Tencent’s Kuaibao and Yidianzixun.

Based in Shanghai, Qutoutiao reportedly reached unicorn status in March, when it raised a Series B of about $200 million led by Tencent. For Tencent, Qutoutiao and Kuaibao represent opportunities to take market share away from Jinri Toutiao, which is owned by ByteDance. ByteDance is reportedly planning a Hong Kong IPO that could value it at over $45 billion.

In its SEC filing, Qutoutiao said that since launching in July 2016, it has achieved monthly average users of about 48.8 million and daily average users of about 17.1 million, with the average time users spend on the app each day totaling about 55.6 minutes in July 2018. To compete with Jinri Toutiao and other rivals, Qutoutiao targets users from China’s smaller Tier 3 cities. Despite increasing levels of disposable income, Qutoutiao says Tier 3 cities, many of which are located in the west of China, are still underserved markets.

Qutoutiao also said in its filing that its net revenues increased from RMB 58.0 million (about $8.8 million) in 2016 to RMB 517.1 million (about $78.1 million) in 2017, and from RMB 107.3 million (about $16.2 million) in the six months ended June 30, 2017 to RMB 717.8 million (about $108.5 million) in the same period in 2018.

The app uses an AI-based content recommendation engine to display articles and videos based on user profiles and plans to use money raised from its IPO to add more content offerings, increase monetization opportunities and look for acquisition and investment opportunities. Qutoutiao plans to list on Nasdaq under the ticker symbol QTT. The IPO will be underwritten by Citigroup Global Markets, Deutsche Bank Securities, China Merchants Securities and UBS Securities and KeyBanc Capital Markets.

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Aug
19

Catching Up On Readings: IPOs in FIrst Half of 2018 - Sramana Mitra

This feature from Benzinga looks at the best and worst IPOs in the first half of 2018, which saw about 118 companies raising an aggregate $35.2 billion, the most since 2014. For this week’s...

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Original author: jyotsna popuri

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Aug
19

How Samsung's new Galaxy Note 9 compares with last year's Galaxy Note 8

Tony Villas-Boas/Business Insider

The Galaxy Note 9 is here — but is it an upgrade from last year's Galaxy Note 8?

In several ways, yes. The Galaxy Note 9 has a bigger battery, some advanced camera features, and more starting storage. It also comes with a more advanced S Pen that can be used as a remote (which, if you buy the blue version of the Galaxy Note 9, comes in bright yellow).

The Galaxy Note 9 is also bigger, heavier, and costs at least $70 more than last year's model, putting it on par with the iPhone X as one of the most expensive smartphones you can buy.

But the Galaxy Note 9 also has a very similar overall design to the Galaxy Note 8, the same camera from a hardware standpoint as last year's model, and identical features like wireless fast charging and a nearly edge-to-edge display.

So whether you're considering upgrading from the Galaxy Note 8 or trying to decide between the two phones — after all, the Galaxy Note 8 is still an excellent phone and now has a reduced price tag — here are all the ways the Galaxy Note 9 differs from the Galaxy Note 8.

Original author: Avery Hartmans

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Aug
19

I've been using the mega-sized, room-shaking Google Home Max speaker for 6 months. Here's why I think it's worth the $400 price tag (GOOG, GOOGL)

One of the things that's surprised me most is how easily Google Assistant has become integrated into my life.

Before getting the Google Home Max, I didn't think I needed or wanted a digital assistant inside my home. My main experiences up until that point had been with Siri on the iPhone and Amazon's Alexa on an Echo Dot speaker, and in both cases, they never really became a part of my daily routine.

But Google Assistant has been different, and I find myself using it several times a day. I most often use it to set cooking to timers, or for asking about the weather, travel times, what song is playing, or random facts. The next feature I plan to try now that I have two Google Home Minis is using Chromecast to play music in every room of my apartment.

If you're thinking, "This thing costs $400 and that's all she uses it for?", that's a fair critique. The fact is, that's all I've needed it for — so far. The Google Home Max has tons of other features, but I don't have a smart home so it can't control my lights or thermostat, and I prefer a physical planner over a digital calendar, so I don't review or create appointments using the device. Everyone uses smart assistants differently and places different valued on convenience, and so far, these features are the most important to me.

If I have one complaint about the internal smarts, it's that Google Assistant is easily triggered by my TV. Its lights will illuminate almost every time I have my TV on, and for words that sound nothing like "Hey Google." It's not a deal-breaker, but it can be annoying.

Original author: Avery Hartmans

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Aug
19

Meet Grimes, the Canadian pop star who streams video games and is dating Elon Musk (TSLA)

Who is Grimes, the pop star and producer Elon Musk is dating - Business Insider Edition USUKDEAUSFRINITJPMYNLSEPLSGZAES Follow us on: Grimes, whose real name is Claire Boucher, grew up in Vancouver, British Columbia. She attended a school that specialized in creative arts but didn't focus on music until she started attending McGill University in Montreal.
Grimes performing at Coachella in 2013. Karl Walter/Getty Images for Coachella

A friend persuaded Grimes to sing backing vocals for his band, and she found it incredibly easy to hit all the right notes. She had another friend show her how to use GarageBand and started recording music.

Mike Windle/Getty Images for Coachella

In 2010, Grimes released a cassette-only album called "Geidi Primes." She released her second album, "Halfaxa," later that year and subsequently went on tour with the Swedish singer Lykke Li. Eventually, she dropped out of McGill to focus on music.

Grimes performs onstage in Los Angeles. Charley Gallay/Getty Images for H&M x ERDEM

In 2012, Grimes signed to the British indie label 4AD and released "Visions," which would become a breakout success. Two years later, Pitchfork named "Oblivion" the best song of the decade so far.

Grimes performs at the Budweiser Made in America Music Festival in 2014. Charles Sykes/Invision/AP

Grimes signed with Jay-Z's management company, Roc Nation, in 2013.

Grimes and Jay-Z at a Roc Nation pre-Grammy party. Larry Busacca/Getty Images

Grimes released her fourth studio album, "Art Angels," in the fall of 2015. The single of the album, "Flesh Without Blood," features a character she created named Rococo Basilisk who is "doomed to be eternally tortured by an artificial intelligence, but she's also kind of like Marie Antoinette," she told Fuse.

Grimes performs during the Pitchfork Music Festival in Chicago in 2014. Daniel Boczarski/Getty Images for Ketel One

Grimes is also an avid gamer, and she has streamed herself playing the fantasy role-playing game "Bloodborne" on Twitch, the video-game-streaming platform.

Grimes at the iHeartRadio MuchMusic Video Awards in Toronto in 2017. Mark Blinch/Reuters

Grimes attended the Met Gala in early May with Elon Musk, the CEO of Tesla and SpaceX. At the time, reports said they had been "quietly dating" for the past few weeks.

Elon Musk and Grimes attend the Heavenly Bodies: Fashion & The Catholic Imagination Costume Institute Gala at The Metropolitan Museum of Art on May. Charles Sykes/AP

Grimes and Musk met on Twitter. Musk was planning to make a joke about artificial intelligence — specifically, about the Rococo Basilisk character in her "Flesh Without Blood" video — and discovered she had beaten him to the punch.

Elon Musk and Grimes at the Met Gala. Jason Kempin/Getty Images

Grimes has taken to Twitter several times to defend Musk and Tesla. In since-deleted tweets, Grimes said Musk has never tried to stop Tesla workers from unionizing and claims she has encouraged a union vote among Tesla employees.

Twitter / Grimezsz

Grimes recently contributed her talents to a song on Janelle Monae's new album, "Dirty Computer." After initially teasing an album of her own this year, she said on Instagram that she wouldn't be releasing new music "any time soon" and alluded to a rift between her and 4AD.

Grimes attends a party at the Chanel Beauty House in February. Emma McIntyre/Getty Images

Get the latest Tesla stock price here.

SEE ALSO: How to dress like a tech billionaire for $200 or less

More: Features Grimes Elon Musk Claire Boucher

Learn More About Artificial Intelligence With This Exclusive Research Report

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Original author: Avery Hartmans

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Aug
19

Samsung just unveiled its first smart speaker, the Galaxy Home, to take on Amazon, Google, and Apple

Samsung announced its first smart speaker, the Galaxy Home, during its event in Brooklyn, New York, on Thursday.

The "smart" part comes from Samsung's Bixby artificial-intelligence voice assistant. Much as with Amazon's Alexa, Google's Assistant, and Apple's Siri, Bixby is designed to answer questions and perform voice-activated tasks.

Samsung

So far, Bixby hasn't received the most positive reviews compared with its competition. Samsung announced several improvements to Bixby during its Thursday event, but it feels as if the company is playing catch-up with Google, Amazon, and even Apple's Siri.

The Galaxy Home is meant to be a smart-device hub, giving customers voice control over other smart devices such as door locks or lights.

As a speaker, the Galaxy Home features 360-degree sound, but it apparently can also direct sound toward a specific area rather than spreading it around a room. It also houses a subwoofer for bass.

Design-wise, it seemingly sports a fabric exterior in shape that is somewhat similar to Apple's HomePod. The major difference is the tripod stand. From the photos during Samsung's event, it looks as if it could be a fairly large device.

Samsung

Samsung didn't reveal much about the Galaxy Home during its event. More details are expected in November during the Samsung Developer Conference.

Original author: Antonio Villas-Boas

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May
31

Uber CEO Dara Khosrowshahi says securing investment from Warren Buffett would fulfil a 'fanboy' career goal

Once you've established how much RAM you think you need — and then doubled it — the CPU (processor) should be the next spec you look at.

Many of the computers you'll be looking at will come with CPUs from Intel, and they generally come in more-or-less easily discernible performance packages. The Core i3 line is a relatively low-powered line of CPU. The Core i5 is mid-range, and the Core i7 is top of the line. Some computers have ultra-powerful Core i9 models, but people who buy those computers already know what they're looking for.

With Intel's latest 8th generation of CPUs, almost all of its models have at least four cores, including the low-power Core i3 models. Higher-end models have six or more cores. The more cores a CPU has, the faster it can open and run several apps at the same time. With that in mind, a Core i3 will actually suit a lot of people for basic tasks, more so than previous generations of Core i3 CPUs that only had two cores.

The reason why you'd want a mid-range Core i5 or high-end Core i7 is if you want to open and run many apps at the same time even faster.

As it is with RAM, casual users who don't really use computers that often will be fine with Core i3 CPUs. But those who use computers a lot will want to look at the Core i5 at least, and potentially Core i7 models.

Personally, I don't buy a computer with anything less than a Core i7. I want apps to open quickly when I need them, and I want them to do the things they do as fast as possible for my work. For example, I benefit from using a Core i7 when I run Photoshop to bring you some of the pretty photos of products I write about. I have no time to waste for things to load and render while editing and saving photos. And as for web browser tabs, I have no time to wait for slow tab switching while researching for a story.

Some computers come with AMD's line of Ryzen processors. I don't have much experience with AMD's processors, so I can't accurately say which one will work for what type of user you are.

Original author: Antonio Villas-Boas

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Aug
19

The $1,000 smartphone showdown: Samsung's new Galaxy Note 9 vs. Apple's iPhone X

Samsung/Apple/Business Insider

Here it is, another smartphone that costs $1,000.

Samsung announced the Galaxy Note 9 on Thursday with the same price tag as the iPhone X, which is still a ridiculous asking price for a smartphone, if you ask me. But that four-figured price tag might be slightly more justifiable on the Galaxy Note 9.

After looking at the specs and features of both phones, it's clear that you're getting more "phone" in the Galaxy Note 9 than you are with the iPhone X.

Check out the major differences between the iPhone X and Galaxy Note 9 to see what I mean:

Original author: Antonio Villas-Boas

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May
31

'We rolled this out wrong': Spotify CEO regrets the way R Kelly and XXXTentacion were banned (SPOT)

Apple CEO Tim Cook speaks at an Apple event at the Worldwide Developer's Conference on June 13, 2016 in San Francisco, California. Thousands of people have shown up to hear about Apple's latest updates. Andrew Burton/Getty

In April 2017, a group of over 30 software developers gathered at a luxury loft in New York City's trendy Tribeca neighborhood after receiving an invitation from Apple. They didn't know exactly why they had been summoned, but all of them had one thing in common: they developed apps for Apple's devices, according to people who attended the event.

The developers at Apple's loft soon realized the hardware giant needed something from them: Apple was a few months into a major shift in the App Store's core business model, and it needed buy-in from developers.

Developers, Apple said, needed to realize the business model of apps was changing. Successful apps tended to focus on long-term engagement instead of upfront cost. Indie developers who wanted to capitalize on this needed to move to a subscription model, as Apple had made possible in the past year in a splashy announcement.

Why Apple, one the strongest forces in the world of technology, held an invite-only meeting for smaller, often one-or-two person indie developers is a story that goes back to the beginning of the App Store in 2008. Shortly after the App Store was turned on for iPhones, people realized that the market for apps had a tendency to drive prices for software down.

Eventually, iPhone owners got used to apps costing only $1 or $2.

Months after the App Store launched, former Apple CEO Steve Jobs referenced the shifting market for apps in a 2008 interview that was recently unearthed.

"I think some of the folks have come down from $10 to $5, and see their sales go up more than 2X. I think these guys are trying to maximize revenue and they're experimenting," Jobs said at the time. "They could ask us, 'What should we do?' and we're going to say, 'We don't know.' Our opinions are no better than yours because this is so new."

10 years later, the App Store isn't new anymore, and Apple continues to tweak its rules so that developers can create sustainable business models, instead of selling high-quality software for a few dollars or monetizing through advertising. If Apple can't make it worthwhile for developers to make high-quality utilities for the iPhone, then the vibrant software ecosystem that made it so valuable could decay.

Apple's main tool to fight the downward pricing pressure on iPhone apps is subscriptions.

Some apps are 'hammers'

VFS Digital Design/FlickrSome software is like a network, and other software is like a hammer.

For example, an app for connecting you to friends and family, like Facebook or Snapchat, is a network. On the other hand, an app that allows you to, say, crop or alter a photo is more of a tool, like a hammer.

The advent of the App Store in 2008 made most software for iPhone and iPads ever-cheaper as Apple's userbase was exploding, which was great for network-style apps: they got access to a huge userbase, and since they make money through advertising or other methods, the race to the bottom in terms of pricing didn't hurt them.

But the App Store put a lot of stress on hammer makers, people and small businesses who developed tools for people to draw, or write, or program — basically, apps called "utilities" in the App Store. These developers would sell an app for a few dollars in a one-time transaction, and then they were stuck paying server costs and upkeep indefinitely with free updates.

"Once the customer is acquired and they pay the money, they don't get charged again. So what keeps the app up?" Ish Shabazz, an indie iOS developer, said.

In response, in 2016 Apple introduced what was reportedly internally called "Subscriptions 2.0," a way for developers that made utilities and other kinds of apps to bill their customers on a regular, recurring basis, creating the cashflow necessary to keep a hammer-style app up-to-date and effective.

It also, according to developers that Business Insider spoke to, made it possible to create a large and sustainable software business based on App Store sales.

This September, "Subscriptions 2.0" turns two year old. Subscription-based apps remain a very small fraction of the 2 million apps available from the App Store, but Apple is pleased with the uptake.

"Paid subscriptions from Apple and third parties have now surpassed $300 million, an increase of more than 60% in the past year alone," Apple CEO Tim Cook said during a conference call last month.

"What's more, the number of apps offering subscriptions also continue to grow. There are almost 30,000 available in the App Store today," he continued.

A secret developers conference

Tinder has a lot of success selling premium subscriptions. Tinder The emphasis Apple is putting on subscription business models for app makers is clear from the invite-only meeting that the iPhone giant held in New York in 2017.

Apple holds an annual developers conference in San Jose, but it held a separate session that year for smaller developers encouraging them to adopt subscription business models.

But if the transition didn't go well, and developers stopped making hammer-style apps, Apple could lose some of the vibrant software that made its iPhone and iPad so valuable.

Up until 2016, when a developer sold an app to a customer, 30% of the transaction went to Apple, and the other 70% arrived in the form of a check to the app's creator.

The new way Apple wanted to promote: Instead of users paying for apps once, they'd pay on a regular basis, putting money into developer coffers on a regular schedule. Apple would still get a 30% cut of the subscription's cost, but if a customer continued to subscribe after a year, Apple's cut would go down to 15%.

At the meeting, Apple underscored that the app model was changing. The meeting touched on topics including launching, customer acquisition, testing and marketing, engagement, retention, monetization, and paid search ads.

An Apple representative said at the meeting that paid apps represent 15% of total app sales and is on the decline, according to a person who was there who did not want to be identified to maintain their relationship with Apple.

This meant that developers needed to spend time turning free customers into high-value customers, and also worry about churn — the percent of customers that used to subscribe but canceled. Apple suggested several tactics, like offering 2-4 options to improve conversion rate, segmenting users by price. Apple also suggested that after a month, it was seeing 41% retention on apps that increased their prices, only slightly lower than the 61% retention that it was seeing when subscription prices were kept the same.

The message was clear: successful apps now focus on getting regular engagement from their users, not one-time sales. For developers, that meant embracing the subscription model.

If you focus on paid apps, instead of subscriptions, Apple warned, your business will eventually hit a cap.

An elite developer finds prices can go even higher

Lucy Yang/INSIDER One of the biggest winners from the changes to the App Store is Lightricks, an Israel-based developer which makes several serious photo editing apps for iPhones and iPads under the Enlight brand.

It makes FaceTune, a fun app that improves selfies — smoothing out imperfections, fixing the lighting, and generally making you look your best.

FaceTune was the No. 1 most downloaded paid app on the United States App Store on Friday. It's a paid app that costs $3.99. But although most developers would love to have those kind of numbers, Lightricks cofounder Itai Tsiddion is more excited about FaceTune 2, which uses the subscription app model.

FaceTune 2 has over 500,000 active subscribers, Tsiddion said, and through research he's been able to figure out that the people who are engaged and using the app value it highly enough to pay much higher prices than what a paid app could command.

If you want to sign up on a monthly basis, FaceTune2 costs $5.99 to unlock. Annually, it costs $32. And if you just want to buy it outright forever, it's a whopping $69.99.

"Those are the prices we can command with subscriptions," Tsiddion said. "We were pitching, 'we'll get to $20.' We're at $36 now!"

Lightricks achieved a $40 million run rate this year and is profitable, Tsiddion said, but in the early days, there were questions from Silicon Valley investors about whether it's possible to build a real business making mobile apps on the Apple App Store.

"Even on Sand Hill Road, nobody believed it was a sustainable ecosystem," before the subscription changes, Tsiddion said, speaking of Lightricks' early days.

With paid apps, he found they were "hitting a ceiling around $10 million per year in revenue, which is not very much when you have serious R&D."

But now, the recurring revenue from the company's App Store subscriptions have transformed a company whose primary product is iPhone and iPad apps into a "real business" with 140 employees.

Dominated by big players

HBO makes one of the top grossing apps in the App Store. HBO Still, even with some hammer-makers finding huge success, the majority of Apple's subscription revenue doesn't appear to come from apps that are specific tools — instead, it's coming from big content businesses like Pandora, HBO, and Netflix.

"My suspicion is that a good portion of those subscriptions are content subscriptions," independent Apple analyst Neil Cybart wrote in May.

"Really, the growth of those applications has been cemented by the subscription applications,"Alex Malafeev, co-founder of Sensor Tower, an app analytics firm, told Business Insider. "It's definitely a top-heavy market right now in terms of the revenue."

"If you look at maybe the top 20 or 30 apps and companies, these are going to be the names you hear in the media all the time, they're generating a lot of that revenue. Netflix. Spotify. Tinder. YouTube," he continued. "Part of this is driven by these companies introducing new media subscription monetization and doing really well."

One of the apps that is the best example of content subscriptions is Tinder, Malafeev said — a network-style app, and as a part of giant IAC, certainly not an indie developer.

"Tinder probably being the best example where the majority of their monetization is from "Gold" premium subscriptions, but they also have considerable purchases that you can buy as well to boost your profile or something like that," he said.

Apple likes to tout its payouts to developers. In June, it said that it had paid out $100 billion to App Store developers, of which there are 20 million. But some smaller developers worry that figure is misleading, with the majority of that going to the big players.

"They say they paid developers $100 billion dollars, which I think is hilarious. Who are they paying $100 billion dollars? HBO and Netflix are two of the top-grossing apps on the App Store. It seems disingenuous to take credit for 'Game of Thrones,'" Shabazz said.

Capsicum, a daily planner app, will be sold with subscription pricing. Ish Shabazz

One way that "hammer" developers are adapting to the new subscription focus is to bundle content into their tool apps.

Shabazz is working on a daily planner and notebook app called Capsicum, which will be monetized through subscriptions. He's shooting for $19.99 per year.

"The way that works is we're going to be adding content constantly over time," Shabazz said, citing additions like weather, backup features, and daily graphics inside the journal.

It also costs money and time to retool a popular app for subscriptions. Popular iOS app Ulysses changed from a $25 app to a $5 per month app last year, for example. "Adding subscription to Ulysses took us 7 months, with 1 man-year engineering, 1.5 man-years total effort. It's 22k lines of production code," Ulysses cofounder Max Seelemann tweeted.

There's also a danger that consumers may not want to pay on a monthly basis for a utility. "You've seen many apps changing their business models, and the consumer reactions are mixed," Denys Zhadanov, a VP at Readdle, which makes Spark, a mail client, as well as other utilities, told Business Insider in an email.

The trick is to "provide recurring value, so that you can ask for a recurring fee. If the app/service is a more of a tool (hammer) that is used once a month — charging for that every month doesn't make much sense," he continued. "Yet there are exceptions on the App Store who trick users into free trials and charge them $3.99 a month, making $1M revenue per month."

How many subscriptions?

Tim Cook. Apple Apple hasn't said how many in-app subscriptions are currently being paid for and didn't respond to a request for comment for this story.

Apple has 300 million people paying it for subscriptions, according to its most recent earnings call. Some are subscriptions to Apple's own services, like Apple Music, but the majority are subscriptions to third-party apps.

The number certainly stacks up well to other content subscription services: Netflix has 125 million subscribers and HBO Now only has 5 million. Spotify has 83 million paid subscribers.

Apple is quietly building one of the biggest subscription businesses in the world — something that's core to the company as iPhone sales growth slows. Apple wants its services, supported by the App Store, to be a Fortune 50 business by 2020, or about $55 billion per year in revenue.

While a lot of that lifting can be done by content, to build a business that big, Apple is going to need a lot of hammers too.

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Original author: Kif Leswing

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Aug
19

5 myths about iPhone battery life you might mistakenly believe — and what you should do instead (AAPL)

There was a minor scandal last year when it was discovered that Apple sometimes reduced the power to iPhone processors with old and spent batteries.

Basically, Apple did make some iPhones appear to run slower. It fixed the issue in a software update and offered $29 replacement batteries to users.

But just because you can get a battery for $29 doesn't mean it will solve all your battery life issues. For some people, it could. But if you go to an Apple store and the technician said your battery seems fine, it probably is.

"I would say less than 10% of the phones we have ordered batteries for actually need a battery, based on diagnostics," a Genius at a Midwestern Apple store told Business Insider earlier this year.

To check if your battery needs a replacement, go to Settings > Battery > Battery Health (Beta).

If you don't see it, you probably need to update your iPhone software.

If your "maximum capacity" is under 80%, you might want to change it. Otherwise, if you're only missing a few percentage points, you can probably wait.

Original author: Kif Leswing

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Aug
19

Samsung's long-awaited foldable phone is 'not far away' — here are 7 things to expect from the Galaxy X

Samsung

For years, we've heard rumors about a Samsung foldable smartphone called the Galaxy X.

The phone still hasn't surfaced — but Samsung's mobile business head DJ Koh said on August 10 that it's "not far away" during a press conference following the company's Unpacked event where it announced the Galaxy Note 9 phone.

It's tough to gauge DJ Koh's "not far away" statement, whether he means 2018 or 2019. An earlier report from July suggested 2019 would be the year we finally get a peek at the Galaxy X, according to the Wall Street Journal.

A lot of phone manufacturers, including Apple, are also said to be creating similar foldable smartphones. But if Samsung stays the course, it might be the first to execute, since it has the added advantage of being the maker of the OLED display that make bendable screens possible.

Here's what we know about the rumored Galaxy X smartphone, reportedly codenamed "Winner":

Original author: Antonio Villas-Boas

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Aug
19

Here are Ninja's settings in 'Fortnite' that help him play so well

YouTube/Ninja

Based on Ninja's performance while he's playing "Fortnite," you know for a fact that whatever he's doing is working.

I can't guarantee it'll turn you into a "Fortnite" legend, but if you want to try something that clearly works for one of the biggest "Fortnite" streamers in the world, a good place to start is with the game's settings more than anything else — apart from being Ninja himself.

Fortnite has preset options for graphics and controls, but a little tweaking here and there can actually give you advantages over other players who don't tweak their settings.

YouTube channel Unbox Therapy recently posted a video showing some of Ninja's "Fortnite" settings, and a website called BestFortniteSettings.com also laid out the specific tweaks, as revealed by Ninja himself during some of his streams on Twitch.

Check out Ninja's "Fortnite" settings, as well as hte tweaks and shortcuts he has on his keyboard and mouse:

Original author: Antonio Villas-Boas

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Aug
19

The latest rumors about Apple's upcoming iPhones are here — here's what's new (AAPL)

A new set of iPhone predictions is out from TrendForce, a market research firm focusing on computer components like DRAM and NAND Flash.

TrendForce believes Apple is preparing three new iPhone models for a launch this year, matching previous rumors and predictions.

The iPhones could come in three sizes, according to the report: One with a 5.8-inch screen, one with a 6.1-inch screen, and one with a 6.5-inch screen.

The least-expensive and most common iPhone is likely to be the device with the 6.1-inch screen, TrendForce predicts, because it uses a less expensive LCD screen. The other two devices will probably use OLED displays, like the current iPhone X, which have better color and blacks, and Trendforce expects them to have 4GB of RAM.

The report also suggests that the two premium devices could support Apple Pencil, a stylus that can currently be used with the iPad Pro.

All three phones will have Face ID, Apple's 3D camera for unlocking the phone using facial recognition, which enables the screen to stretch across the entire front of the device, except for a "notch" on the top.

Here's how TrendForce sees the prices shaking out:

5.8-inch iPhone: $899-$949

6.1-inch iPhone: $699-$749

6.5-inch iPhone: $999

Apple has launched new iPhones in September for the past six years. "All three models are expected to be shipped in September and October as previously scheduled," TrendForce wrote in the report.

TrendForce's predictions are in line with other reports about the upcoming iPhone. The remaining open question is what Apple decides to call its lineup of devices.

Original author: Kif Leswing

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Aug
18

The 2019 Volvo XC40 is the first new Volvo you can subscribe to — and the monthly payment includes insurance and maintenance

Volvo XC40. Bryan Logan/Business Insider

The Volvo XC40 is the newest addition to the Swedish automaker's SUV lineup and it joins a growing segment of compact sport-utility vehicles and crossovers currently dominating the market.

Now eight years into its relaunch as a luxury brand under the Chinese automotive conglomerate, Geely Holding Group, Volvo has launched seven new models, three of which are SUVs: the XC90, XC60, and now the XC40.

The 40 is built on Volvo's proprietary small-car skeleton, denoted as the Compact Modular Architecture (CMA) platform which was co-developed with Geely.

As automobiles go, being the smallest and least expensive model in a lineup usually means you'll have to make some compromises — the evidence of which might manifest itself in lower-quality materials and fewer options than the pricier models.

That is not the case here. The XC40 feels nearly every bit as premium as a compact luxury four-wheeler should.

From the moment you pull open its hefty doors, plant yourself into the sculpted, leather and Alcantara-wrapped driver's seat, and grip the thick-rimmed steering wheel with the stoic chrome-plated Volvo badge planted dead-center, you realize you're about to pilot a very capable, exceptionally well-built machine.

At the same time, it's also quaint. And comfortable.

Unlike its larger siblings, the XC40 has no plug-in hybrid variant yet. It can only be had with one of two versions of the company's four-cylinder, turbocharged, gas-powered engines — available with 187-horsepower, or a more energetic 248-horsepower variant. An all-electric version is currently in development.

Volvo recently loaned us a fully loaded XC40 R-Design for a weeklong drive in Los Angeles. These are our impressions:

Original author: Bryan Logan

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