Commentary: Background Checks? Yes, but Leave Video Games Alone






COMMENTARY | I have mixed feelings toward the White House‘s gun violence response. I agree that background checks should be required before people are allowed to buy a firearm and that an assault weapon ban should be reinstated into law. While limiting the number of bullets in a weapon’s magazine will decrease the number of deaths in a mass shooting, the public does not need high-capacity magazines. Therefore any weapon using high-capacity magazines should be banned from public use, not just capping the magazines to 10 bullets.


But violent video games and other media images and scenes real-life violence? These media do not kill people. The shooters kill the people. Those who are mentally unstable may not understand that violent video games are not real life and should not be duplicated in real life. As long as gamers understand the difference between video games and real life, that shouldn’t be touched.






– Edmond, Okla.


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Drop Dead Diva canceled by Lifetime






LOS ANGELES (TheWrap.com) – “Drop Dead Diva” has been dropped.


The series has been canceled by Lifetime after four seasons, the last of which ended in September.






An individual familiar with the situation told TheWrap that the cost of producing the series had become prohibitive, and that Lifetime had approached Sony Pictures Television, which produced the series, about coming up with creative ways to keep the series on the air, apparently to no avail.


Ratings-wise, the series had performed well. In combination with “Army Wives,” “Drop Dead Diva” helped push Lifetime to the number one cable position on Sundays from 9 to 11 p.m. among the women 25-54 demographic last year.


“Drop Dead Diva” revolved around a shallow model who dies in a car crash and comes back to life in the body of a recently deceased lawyer who had led an altruistic life. Brooke Elliott, Margaret Cho and Jackson Hurst starred on the series.


Deadline first reported the news of “Drop Dead Diva”‘s cancelation.


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Some With Autism Diagnosis Can Recover, Study Finds


Doctors have long believed that disabling autistic disorders last a lifetime, but a new study has found that some children who exhibit signature symptoms of the disorder recover completely.


The study, posted online on Wednesday by the Journal of Child Psychology and Psychiatry, is the largest to date of such extraordinary cases and is likely to alter the way that scientists and parents think and talk about autism, experts said.


Researchers on Wednesday cautioned against false hope. The findings suggest that the so-called autism spectrum contains a small but significant group who make big improvements in behavioral therapy for unknown, perhaps biological reasons, but that most children show much smaller gains. Doctors have no way to predict which children will do well.


Researchers have long known that between 1 and 20 percent of children given an autism diagnosis no longer qualify for one a few years or more later. They have suspected that in most cases the diagnosis was mistaken; the rate of autism diagnosis has ballooned over the past two decades, and some research suggests that it has been loosely applied.


The new study should put some of that skepticism to rest.


“This is the first solid science to address this question of possible recovery, and I think it has big implications,” said Sally Ozonoff of the MIND Institute at the University of California, Davis, who was not involved in the research. “I know many of us as would rather have had our tooth pulled than use the word ‘recover,’ it was so unscientific. Now we can use it, though I think we need to stress that it’s rare.”


She and other experts said the findings strongly supported the value of early diagnosis and treatment.


In the study, a team led by Deborah Fein of the University of Connecticut at Storrs recruited 34 people who had been diagnosed before the age of 5 and no longer had any symptoms. They ranged in age from 8 to 21 years old and early in their development were in the higher-than-average range of the autism spectrum. The team conducted extensive testing of its own, including interviews with parents in some cases, to gauge current social and communication skills.


The debate over whether recovery is possible has simmered for decades and peaked in 1987, when the pioneering autism researcher O. Ivar Lovaas reported that 47 percent of children with the diagnosis showed full recovery after undergoing a therapy he had devised. This therapy, a behavioral approach in which increments of learned skills garner small rewards, is the basis for the most effective approach used today; still, many were skeptical and questioned his definition of recovery.


Dr. Fein and her team used standardized, widely used measures and found no differences between the group of 34 formerly diagnosed people and a group of 34 matched control subjects who had never had a diagnosis.


“They no longer qualified for the diagnosis,” said Dr. Fein, whose co-authors include researchers from Queens University in Kingston, Ontario; Children’s Hospital of Philadelphia; the Institute of Living in Hartford; and the Child Mind Institute in New York. “I want to stress to parents that it’s a minority of kids who are able to do this, and no one should think they somehow missed the boat if they don’t get this outcome.”


On measures of social and communication skills, the recovered group scored significantly better than 44 peers who had a diagnosis of high-functioning autism or Asperger’s syndrome.


Dr. Fein emphasized the importance of behavioral therapy. “These people did not just grow out of their autism,” she said. “I have been treating children for 40 years and never seen improvements like this unless therapists and parents put in years of work.”


The team plans further research to learn more about those who are able to recover. No one knows which ingredients or therapies are most effective, if any, or if there are patterns of behavior or biological markers that predict such success.


“Some children who do well become quite independent as adults but have significant anxiety and depression and are sometimes suicidal,” said Dr. Fred Volkmar, the director of the Child Study Center at the Yale University School of Medicine. There are no studies of this group, he said.


That, because of the new study, is about to change.


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FAA grounds Dreamliners in U.S.

Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. (Jan. 16)









With its new plane ordered to stay on the ground, Boeing Co. confronts a full-fledged crisis as it struggles to regain the confidence of passengers and the airline customers who stood by the 787 Dreamliner during years of cost overruns and delivery delays.


A second major incident involving "a potential battery fire risk'' prompted the Federal Aviation Administration on Wednesday to temporarily ground all 787s operated by U.S. carriers until it is determined that the lithium-ion batteries on board are safe.


The order affects United Airlines, which is the first U.S. customer. The FAA gave no indication how soon the plane could resume flying.








The decision came the same day Japanese airlines grounded their 787s after an emergency landing and five days after the FAA and U.S. Transportation Secretary Ray LaHood declared that the flying public is safe on Dreamliners. When it offered those assurances Friday, however, the FAA also announced a comprehensive review of the 787's design, manufacture and assembly.


The grounding represents a significant setback for Chicago-based Boeing, which is marketing the fuel-efficient, mainly carbon-composite jetliner as a vision of the future of commercial passenger aviation. The development of the plane was marred by long production and delivery delays, but it is selling well and has customers around the world.


"We stand behind its overall integrity. We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service," Jim McNerney, Boeing's chairman and chief executive, said in a statement. He said Boeing is working with the FAA to find answers as quickly as possible.


Chicago-based United Airlines has six 787s, but it has been flying only one on flights between O'Hare International Airport and Houston. The airline said Wednesday night that it will accommodate customers on other planes. The domestic 787 flights were to end in late March, when United's first 787s were to begin serving international routes. 


United said it "will work closely with the FAA and Boeing on the technical review as we work toward restoring 787 service."


Foreign carriers are not affected by the FAA order, but LOT Polish Airlines canceled its inaugural flight celebration at O'Hare on Wednesday night, even before the flight landed from Warsaw.


"We just think it would be inappropriate to go ahead with the activities," said Frank Joost, regional sales director of the Americas for LOT. He described the FAA grounding of 787 flights as a "surprise."


LOT also canceled the Dreamliner's return flight to Warsaw. Passengers hoping to depart on the 9:55 p.m. flight said they were disappointed. Many were rebooked on Lufthansa through Munich.


Suzy Zaborek, 27, of Chicago was at Chicago O'Hare on Wednesday night waiting for her father to arrive from Poland aboard the 787. He came home early specifically to ride on the inaugural flight.


Zaborek had not been following the Dreamliner woes in recent weeks and the dramatic groundings on Wednesday.


"I'm glad I didn't know because I wouldn't have let him get on on of those," she said.


The FAA decision to ground all U.S.-registered 787s was the direct result of an in-flight incident involving a battery earlier in the day in Japan, FAA officials said. It followed another 787 battery fire that occurred Jan. 7 on the ground in Boston.


Both failures resulted in the release of flammable materials, heat damage, smoke and the potential for fire in the electrical compartments, the FAA said.


"Before further flight, operators of U.S.-registered Boeing 787 aircraft must demonstrate to the FAA that the batteries are safe," the regulatory agency said. The statement said the FAA will work with Boeing and airlines "to develop a corrective action plan to allow the U.S. 787 fleet to resume operations as quickly and safely as possible."


The FAA said it took drastic action because it determined that battery failures are "likely to exist or develop" in other planes.


Lithium-ion batteries can catch fire if they are overcharged, and the fires are difficult to extinguish, Boeing has previously said. Still, lithium-ion is the right choice for the 787, Boeing officials said.


Earlier Wednesday, Japan's two largest airlines grounded their fleets of 787s after one of the jets made an emergency landing and passengers were evacuated via emergency slides.





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Japanese airlines ground Boeing 787s after emergency landing










TOKYO (Reuters) - Japan's two leading airlines grounded their fleets of Boeing 787s on Wednesday after one of the Dreamliner passenger jets made an emergency landing, heightening safety concerns over a plane many see as the future of commercial aviation.

All Nippon Airways Co said it was grounding all 17 of its 787s and Japan Airlines Co said it suspended all 787 flights scheduled for Wednesday. ANA said its planes could be back in the air as soon as Thursday once checks were completed. The two carriers operate around half of the 50 Dreamliners delivered by Boeing to date.






Wednesday's incident follows a series of mishaps for the new Dreamliner. The sophisticated plane, the world's first mainly carbon-composite airliner, has suffered fuel leaks, a battery fire, wiring problem, brake computer glitch and cracked cockpit window in recent days.

"I think you're nearing the tipping point where they need to regard this as a serious crisis," said Richard Aboulafia, a senior analyst with the Teal Group in Fairfax, Virginia. "This is going to change people's perception of the aircraft if they don't act quickly."

The 787 represented a leap in the way planes are designed and built, but the project was plagued by cost overruns and years of delays. Some have suggested Boeing's rush to get planes built after those delays resulted in the recent problems, a charge the company strenuously denies.

Both the U.S. Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB) said they were monitoring the latest Dreamliner incident as part of a comprehensive review of the aircraft announced late last week.

ALARM TRIGGERED

ANA flight 692 left Yamaguchi Airport in western Japan shortly after 8 a.m. local time (2300 GMT Tuesday) bound for Haneda Airport near Tokyo, a 65-minute flight. About 18 minutes into the flight, at 30,000 feet, the plane began a descent. It descended to 20,000 feet in about four minutes and made an emergency landing 16 minutes later, according to flight-tracking website Flightaware.com.

A spokesman for Osaka airport authority said the plane landed in Takamatsu at 8:45 a.m. All 129 passengers and eight crew evacuated safely via the plane's inflatable chutes. Chief Cabinet Secretary Yoshihide Suga said 5 people were slightly injured.

At a news conference - where ANA's vice-president Osamu Shinobe bowed deeply in apology - the carrier said instruments on the flight indicated a battery error, triggering emergency warnings to the pilots. It said the battery in the forward cargo hold was the same type as one involved in a fire on another Dreamliner at a U.S. airport last week.

"There was a battery alert in the cockpit and there was an odd smell detected in the cockpit and cabin, and (the pilot) decided to make an emergency landing," Shinobe said.

Marc Birtel, a Boeing spokesman, told Reuters: "We've seen the reports, we're aware of the events and are working with our customer."

The Teal Group's Aboulafi said regulators could ground all 50 of the 787 planes now in service, while airlines may make the decision themselves. "They may want to protect their own brand images," he said.

UNDER REVIEW

Australia's Qantas Airways said its order for 15 Dreamliners remained on track, and its Jetstar subsidiary was due to take delivery of the first of the aircraft in the second half of this year. Qantas declined to comment further on the issues that have plagued the new lightweight, fuel-efficient aircraft.

India's aviation regulator said it was reviewing the Dreamliner's safety and would talk to parts makers, but had no plans to ground the planes. State-owned Air India has six of the aircraft in service and more on order.

"We are not having any problem with our Dreamliners. The problems we had earlier were fixed," Arun Mishra, Director General of Civil Aviation, told Reuters. "We are reviewing the situation now."

United Airlines, the only U.S. carrier currently flying the 787, said it was not taking any immediate action in response to the latest incident. "We are looking at what is happening with ANA and we will have more information tomorrow," a spokeswoman said.

Shares of Dreamliner suppliers in Japan came under pressure.

GS Yuasa Corp - which makes the plane's batteries - fell 4.5 percent, as did Toray Industries Inc, which supplies carbon fibre used in the plane's composites. Fuji Heavy Industries, Mitsubishi Heavy Industries and IHI slid 2.5-3 percent on a benchmark Nikkei that was 2 percent lower. ANA shares slipped 1 percent.

PUBLIC CONFIDENCE

Japan's transport minister on Tuesday acknowledged that passenger confidence in the Dreamliner was at stake, as both Japan and the United States have opened broad and open-ended investigations into the plane after the recent incidents.

The 787 is Boeing's first new jet in more than a decade, and the company's financial fortunes are largely tied to its success. The plane offers airlines unprecedented fuel economy, but the huge investment to develop it coupled with years of delay in delivery has caused headaches for customers, hurt Boeing financially and created a delivery bottleneck.

Boeing has said it will at least break even on the cost of building the 1,100 new 787s it expects to deliver over the next decade. Some analysts, however, say Boeing may never make money from the plane, given its enormous development cost.

Any additional cost from fixing problems discovered by the string of recent incidents would affect those forecasts, and could hit Boeing's bottom line more quickly if it has to stop delivering planes, analysts said.

To date it has sold close to 850 of the planes to airlines around the world.

(Addtional reporting by Olivier Fabre, Kentaro Sugiyama, Mari Saito, Deborah Charles and Alwyn Scott; Writing by Ian Geoghegan; Editing by Paul Tait and Alex Richardson)

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New photos of BlackBerry X10 with QWERTY keyboard leak







New images of Research In Motion’s (RIMM) first BlackBerry 10-powered smartphone equipped with a full QWERTY keyboard have leaked ahead of the handset’s unveiling later this month. BlackBerry blog BlackBerry Empire on Monday evening published a pair of photos showing the face of the upcoming N-series smartphone along with the home screen and the app launcher.


[More from BGR: HTC One SV review]






As revealed by earlier images of the phone, the device closely resembles RIM’s previous-generation BlackBerry Bold 9900 from the front, sporting a slim flat design with a touchscreen situated above the famous four-row BlackBerry keyboard.


[More from BGR: Extensive BlackBerry Z10 demo video posted by German website [video]]


RIM will unveil the new handset, thought to be launching as the “BlackBerry X10,” during a press conference on January 30th where BGR will be reporting live. RIM’s first full touch BlackBerry 10 phone, the “BlackBerry Z10,” will also be unveiled at the event.


This article was originally published on BGR.com


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Disney, AT&T U-verse enter expansive distribution deal






LOS ANGELES (TheWrap.com) – The Walt Disney Company and AT&T U-verse have signed a long-term distribution deal that will bring Disney’s sports, news and entertainment content to U-verse customers via a wide array of platforms, including television, computers, smartphones, tablets, gaming consoles and internet-enabled televisions, the companies said Tuesday.


The multi-year agreement will also bring a number of new services, such as ESPN 3D, ESPN Goal Line, ESPN Buzzer Beater, Disney Junior and an upcoming multi-platform network for English-dominant and bilingual Hispanics, which is a joint venture between ABC News and Univision.






Approximately 70 services are covered under the agreement, including numerous ESPN services and the upcoming Longhorn Network, which will be available in Texas, Louisiana and Virginia systems by next football season..


“We’re proud to deliver more Disney content and services to U-verse customers across the screens they watch most,” AT&T Home Solutions’ president of content and advertising sales Jeff Weber said of the pact. “Our U-verse customers expect access to content when they want it, where they want it, and this renewal gives them more value and access to a variety of live and on demand content in and outside the home.


Disney entered a similar multi-platform deal with cable and broadband provider Charter Communications at the end of 2012.


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Well: Boosting Your Flu Shot Response

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. And for maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people’s immune systems produce fewer antibodies to the influenza virus than others’ do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, elderly adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the biceps curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

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City prepared to pay $33 million in two cop misconduct cases

Chicago Tribune reporter David Heinzmann on news that Mayor Rahm Emanuel seeks to settle two notorious cases of alleged police misconduct. (Posted Jan. 14th, 2013)









Nearly seven years after Christina Eilman wandered out of a South Side police station and into a catastrophe, her tragic entanglement with the Chicago Police Department began to come to an end Monday — with a proposed $22.5 million legal settlement that may be the largest the city ever offered to a single victim of police misconduct.


Though the settlement is a staggering sum on its own, Mayor Rahm Emanuel's administration has placed a second eight-figure police settlement on Tuesday's City Council Finance Committee agenda. A $10.2 million settlement is proposed for one of the victims of notorious former police Cmdr. Jon Burge, bringing to nearly $33 million the amount aldermen could vote to pay victims of police misconduct in a single day.


The latest Burge settlement would be for Alton Logan, who spent 26 years in prison for a murder he did not commit and who alleged in a federal lawsuit that Burge's team of detectives covered up evidence that would have exonerated him — a departure from previous cases that documented torture used by Burge's team to extract false confessions. The Logan case would bring the tab on Burge cases to nearly $60 million when legal fees are counted. Burge is serving 41/2 years in federal prison for lying about the torture and abuse of suspects.








The settlement in the Eilman case would avert a trial detailing the events of May 2006, when the then-21-year-old California woman was arrested at Midway Airport in the midst of a bipolar breakdown. She was held overnight and then released at sundown the next day without assistance several miles away in one of the city's highest-crime neighborhoods.


Alone and bewildered by her surroundings, the former UCLA student was abducted and sexually assaulted before plummeting from a seventh-floor window. She survived but suffered a severe and permanent brain injury, a shattered pelvis, and numerous other broken bones and injuries.


Her lawyer and family declined to comment Monday. The case, which has dragged in the courts for six years, was set to begin trial next week. Pretrial litigation had produced scathing rebukes from federal judges of the city's behavior toward Eilman — both on the street and in court.


The city's argument that it was not responsible for her injuries because she was assaulted by a gang member was blasted in a ruling from the 7th U.S. Circuit Court of Appeals this year. a ruling from the 7th U.S. Circuit Court of Appeals this year. Chief Judge Frank Easterbrook described the Police Department's release of Eilman, who is white, into a high-crime, predominantly African-American neighborhood by saying officers "might as well have released her into the lion's den at the Brookfield Zoo."


While Emanuel's Law Department endured some criticism for delays in the Eilman case since the mayor took office in 2011, he has noted repeatedly that the police misconduct highlighted in these and many other cases are legacies from the Richard M. Daley administration that he — and taxpayers — are stuck with.


The mayor's office referred calls to the city Law Department, but a spokesman there declined to comment.


If approved, the Eilman settlement would surpass the $18 million settlement paid to the family of LaTanya Haggerty, who was mistakenly shot and killed by police in 1999. It is frequently referred to as the city's biggest single-victim settlement.


Ald. Howard Brookins Jr., 21st, said city officials have not taken a hard enough line against police misconduct for years, and now taxpayers are footing the bill.


"We've known this was going to bust our budget, and here we are," Brookins said. "The administration (under Daley) should have made police conduct and behavior a higher priority. They didn't, and now we're seeing these costly settlements over and over, to pay for officers mistreating people."


The Logan case was set to go to trial last month, but on the first day of jury selection, city lawyers decided to settle the case. Logan's attorney Jon Loevy said the settlement includes about $1.5 million in legal fees.


Logan sat in prison for 26 years until a stunning 2008 revelation after another man, convicted murderer Andrew Wilson, died. Wilson had told his attorneys in 1982 that he committed the murder in which Logan was accused, but the lawyers said the attorney-client privilege kept them from going public with the admission until after Wilson's death.


Although relieved the city settled the case instead of battling on, Loevy said his client would gladly give up the $8.7 million to have nearly three decades of his life back.


"I don't know who would take that much money to lose their 20s, 30s and 40s," Loevy said. "From his perspective, no amount of money can make him whole and he'd rather have his life back."


While Logan lost the middle chunk of his life, Eilman dwells in a childlike mental state and feels as though she has lost the rest of her life, her family has told the Tribune.


Hobbled by a brain injury that has permanently impaired her cognitive function, she lives with her parents in suburban Sacramento. She requires constant medical treatment and therapy. Doctors have said she will not get better.


Eilman came to Chicago on May 5, 2006, at a time when her bipolar condition was worsening. When she tried to catch a return flight from Midway to California a couple of days later, she was ranting and screaming and appeared to be out of her mind.


Police officers eventually arrested her and took her to the Chicago Lawn district near Midway. Court records and depositions in the case show that officers were alarmed by Eilman's behavior.





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Apple shares fall on reports of cuts to iPhone parts orders






(Reuters) – Shares in Apple Inc dipped below $ 500 for the first time in almost one year after reports it is slashing orders for screens and other components from its Asian supplier as intensifying competition erodes demand for its latest iPhone.


Japan‘s Nikkei reported on Monday that the world’s largest technology corporation began sharply reducing buying of liquid crystal displays about a month ago from suppliers like Japan Display Inc and Sharp Corp.






Sharp’s stock dipped as much as 7 percent in early trading on Tuesday and shares in South Korean Apple suppliers such as LG Display also fell.


“We can’t comment on individual clients,” said Miyuki Nakayama, a spokeswoman for Sharp, which builds iPhone 5 screens at its Kameyama plant in central Japan. Japan Display, a state-run business formed from the small LCD units of Sony Corp, Toshiba Corp and Hitachi Ltd also declined to discuss its orders.


The Nikkei report, later matched by the Wall Street Journal, comes as hard-charging rivals like Samsung Electronics, which makes phones based on Google Inc’s popular Android software, continue to expand market share globally.


Apple stock slid more than 4 percent to an intraday low of $ 498.51 — a level not seen since February 16, 2012 — before bouncing back to trade just above $ 500 at midday. The news also hurt shares of suppliers such as Cirrus Logic Inc, which dived 9 percent.


Some analysts argued that Apple and its manufacturing partners had struggled with quality issues that might have curtailed production times.


Dogged by low production yields, Sharp last year fell behind schedule for iPhone 5 screen shipments in the run-up to the phone’s launch in September. Sharp has yet to acknowledge that Apple is a customer.


“Our checks with supply chain contacts close to the situation identified a very different cause: a slower ramp in the manufacturing of iPhones and iPads (reflecting some quality control issues) and insufficient production lines,” said JoAnne Feeney of Longbow Research.


“Rather than ordering more components and having inventory build up further, Apple put component suppliers on notice to hold off, for the time being, on further shipments until it expanded its production lines – which it plans to complete by the end of the quarter.”


By some estimates, the holiday quarter may have been the worst for U.S. retailers since the 2008 financial crisis, with sales growth far below expectations. Other data yields a more mixed picture of holiday season demand.


Apple was not immediately available for comment. No one at Sharp was immediately available to comment on Monday – a national holiday in Japan – and parts suppliers to Apple in Taiwan declined to comment.


CUTBACKS


Apple has asked Japan Display, Sharp and LG Display Co Ltd to roughly halve supplies of LCD panels from an initial plan for about 65 million screens in January-March, the Nikkei cited people familiar with the situation as saying.


Japan Display’s plant in southwest Japan, where Apple has invested heavily, is expected to temporarily reduce output by up to 80 percent from October-December levels, the Nikkei reported, while Sharp’s dedicated facility for iPhone 5 LCDs will trim production in January-February by about 40 percent.


The move, if confirmed, would tally with analysts saying that sales of the new iPhone 5, which was released in September, have not been as strong as anticipated.


Apple has lost ground gradually to South Korean rival Samsung, as well as smaller, fast-growing rivals such as China’s Huawei Technologies Co Ltd and ZTE Corp.


Samsung overtook Apple in 2012 to become the world’s biggest seller of smartphones, helped in part by the popularity of its Galaxy Note II phone-cum-tablet and a vastly wider range of low- to high-end devices that appeal to a broad swath of consumers. Apple rolled out a single new smartphone last year.


Jefferies analyst Peter Misek trimmed his iPhone shipment estimates for the January-March quarter on December 14, saying that the technology company had started cutting orders to suppliers to balance excess inventory.


Apple also cut its orders for memory chips for its new iPhone from its main supplier and competitor Samsung, Reuters reported in September, quoting sources with direct knowledge of the matter.


The company has been cutting back its orders from Samsung as it seeks to diversify its memory chip supply lines.


Samsung said on Monday that global sales of its flagship Galaxy S smartphones had topped 100 million since the first model was launched in May 2010. The Galaxy S3, launched last May, sold more than 40 million in seven months.


The Galaxy S IV is expected within months and may sport an unbreakable screen, full high-definition quality resolution of 440 pixels per inch, and a more powerful processor.


It’s expected to increase its smartphone sales by more than a third this year and widen its lead over Apple, according to researcher Strategy Analytics. It forecast Samsung will sell 290 million smartphones in 2013 versus iPhone sales of 180 million.


Kim Sung-in, an analyst at Kiwoom Securities in Seoul, sees Samsung shipping 320 million smartphones this year and doubling sales of its tablets to 32 million.


(Reporting by Tokyo bureau, Avik Das and Sayantani Ghosh in Bangalore, Clare Jim in Taipei and Tim Kelly in Tokyo; Editing by Supriya Kurane, Andrew Hay and Alex Richardson)


Tech News Headlines – Yahoo! News





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