Samsung sold over 5 million Galaxy S8 phones

Samsung was quick to crow about Galaxy S8 pre-orders, but it was easy to be skeptical without real numbers to back up the bragging. Flash forward a few weeks, though, and it’s a different story. The company now reports that it has sold 5 million Galaxy S8 and S8 Plus devices worldwide since its April 21st debut — not bad for less than a month on the market, and only in a limited number of countries. It’s not certain which model was the most popular, though the regular S8’s lower price helps its chances.

It’s hard to say how this stacks up to the Galaxy S7, although Samsung had noted that pre-orders were up 30 percent compared to a year ago. And other manufacturers? That’s tricky when most tend not to divulge model-specific data to avoid tipping their hand to competitors. The closest you get is Apple. It reported selling 50.8 million iPhones last quarter (about 16.9 million per month), but it’s not certain how many of those were iPhone 7 and 7 Plus units, let alone how many of them sold in April. Without directly comparable figures, it’d be difficult to declare a sales leader in high-end phones.

As it is, Samsung is likely less concerned about raw numbers and more about its bottom line. In that sense, the S8 could easily be a success. Samsung racked up record operating profit in the quarter before the S8 stared shipping (albeit mainly on the back of chip sales), and the phone’s strong early showing is only bound to help.

Via: Mashable

Source: The Investor, ZDNet

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Japanese tax investigation ends with Apple paying $118 million

After an in-depth investigation, one of Apple’s Japanese subsidiaries paid ¥12 billion ($ 118 million) in back taxes, according to a report from the Yomiuri Shimbun. Japanese tax authorities ordered the payment after determining the company hadn’t correctly paid taxes on funds it had quietly funneled out of the country. This whole thing might sound a little dry, but hey — what better way to spend a Friday than to dig into some corporate cloak-and-dagger dealings? Let’s take a closer look.

First, here’s a little background. If you live in Japan and you buy an iPhone from Apple, that money goes to (who else?) Apple Japan. If you buy apps, movies or music from iTunes in Japan, however, that money goes to a different subsidiary: iTunes K.K. Ah, but there’s more: much of Apple’s intellectual property is owned by two subsidiaries in Ireland, and other Apple business units around the world pay those entities royalties to use that IP. iTunes K.K. had one such arrangement set up — when people used the iTunes service to listen to music or watch videos, the subsidiary owed part of its profits to an Apple-owned holding company in Ireland as royalties.

And why Ireland? Well, Apple had a lucrative structure in place that allowed the company to pay hardly anything in corporate taxes on that cash. (Tim Cook, by the way, strongly asserts this isn’t true.) Moreover, Apple has never and will never talk about how much those licensing fees are, so they’re widely seen as a tool to help keep Apple’s money away from the governments who want to collect their share. So, iTunes generates profits in Japan, and Apple ultimately wants it to go to Ireland where it’ll barely get taxed. The problem is, Japanese income tax law holds that a Japanese company (like iTunes K.K.) has to pay a roughly 20 percent withholding tax on royalties paid to foreign companies… like Apple’s Irish operation. That’s no chump change, so the parties involved had to get a little crafty.

iTunes K.K. didn’t make royalty payments to Apple’s Irish subsidiaries — it paid them to Apple Japan, the company’s other, separate half. Then, Apple’s Irish subsidiary sold iPhones to Apple Japan by way of an affiliated company in Singapore. Tokyo’s Taxation Bureau alleged that Apple Japan bundled those royalties into the price of the iPhones it was buying so the holding company in Ireland ultimately wound up with the amount the iPhones actually cost plus software profits that never got taxed. Apple kept this up between 2012 and 2014 and moved around ¥60 billion (or about $ 586.5 million) in the process. Japanese tax authorities wanted — and reportedly received — the back taxes on that shifted money, and now the case is closed.

If all of this sounds a little familiar, well, you’re onto something. Apple had to pay Italy’s tax bureau €318 million (or $ 348 million) after it was alleged the company underpaid its corporate taxes for six years. Oh, and then there’s the whole “having to pay back $ 14.5 billion to Ireland” thing for creating a tax structure EU regulators have called “illegal.” Playing by the rules won’t make anyone as obscenely rich as if they hadn’t, but man — Apple is probably getting a little tired of being batted around.

[Image credit: ChinaFotoPress/ChinaFotoPress via Getty Images]

Source: The Japan News

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Android malware from Chinese ad firm infects 10 million devices

The Android malware Hummingbad has infected 10 million devices so far, but what’s most interesting is where it comes from. First discovered by the security firm Check Point in February, the researchers have tied it to Yingmob, a highly organized Chinese advertising and analytics company that looks like your typical hum-drum ad firm. Once it successfully infects and sets up a rootkit on Android devices (giving it full administrative control), Hummingbad generates as much as $ 300,000 a month through fraudulent app installs and ad clicks. As Check Point describes it, Hummingbad is an example of how malware companies can support themselves independently.

“Emboldened by this independence, Yingmob and groups like it can focus on honing their skill sets to take malware campaigns in entirely new directions, a trend Check Point researchers believe will escalate,” the researchers say. “For example, groups can pool device resources to create powerful botnets, they can create databases of devices to conduct highly-targeted attacks, or they can build new streams of revenue by selling access to devices under their control to the highest bidder.”

On top of its Hummingbad victims, Yingmob controls around 85 million devices globally. Naturally, the company is also able to sell access to the infected devices, along with sensitive information. And while its attack is global, most victims are in China and India, with 1.6 million and 1.3 million infected users, respectively. iPhone users aren’t safe from Yingmob either — researchers have also found that the group is behind the Yispecter iOS malware.

Via: CNET

Source: Check Point (1), (2)

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