iPhone 5 hits China as Apple market share slips

SHANGHAI (Reuters) – The China release of its iPhone 5 on Friday should win Apple Inc some respite from a recent slide in its share of what is likely already the world’s biggest smartphone market, but its longer-term hopes may depend on new technology being tested by China‘s top telecoms carrier.

Cupertino, California-based Apple has been in talks about a tie-up with China Mobile for four years. A deal with China’s biggest carrier is seen as crucial to improve Apple’s distribution in a market of 290 million users – which is forecast to double this year.

China is Apple’s second-largest and fastest-growing market – it brings in around 15 percent of total revenue – but the company’s failure to strike a deal with China Mobile means it is missing out on a large number of phone users. As the China pie grows, Apple’s sales increase, but without China Mobile, it’s losing ground at a faster rate compared to other brands.

“In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in China. However, in relative terms, I don’t believe it will move the needle enough in market share,” said Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant.

China Mobile and Apple initially said they were separated only by a technical issue – as the Chinese carrier runs a different 3G network from most of the world – but that has evolved into a broader and more complex issue of revenue-sharing.

“China Mobile and Apple still have to solve many issues, such as the business model, articles of cooperation and revenue division, but I believe we will reach an agreement eventually,” China Mobile CEO Li Yue was reported by Chinese media as saying in Guangzhou last week.

Apple China declined to comment. China Mobile said it had no update to the Apple discussions.

STRONG PRE-ORDERS

Apple’s ranking in China’s smartphone market slipped to sixth in July-September, according to research firm IDC, [ID:nL4N09G1QK] but investors, primed to look to China product launches for an uptick in Apple’s quarterly sales, have good headline numbers to digest – more than 300,000 iPhones pre-ordered on one carrier alone. But it’s the lack of a deal with the No.1 carrier that prevents those numbers being stronger.

The iPhone is currently sold through Apple’s seven stores, resellers and through China Unicom and China Telecom – which together have fewer than half the mobile subscribers of bigger rival China Mobile.

“Apple’s market share declined because of the transition between the iPhone 4S and 5. Their market share will recover (with the iPhone 5), but if you don’t have China Mobile, the significant market share gains will be very difficult,” said Huang Leping, an analyst at Nomura in Hong Kong.

TD-LTE: STILL DISTANT

Cutting a deal with a Chinese state-owned carrier may be less optimal than the deals Apple is used to in other markets, and analysts note that China Mobile wouldn’t necessarily open the flood gates for Apple.

Ovum’s Putcha believes Apple and China Mobile will eventually strike a deal – though this would be for an iPhone running on China Mobile’s next-generation network rather than its current 3G network.

Of China Mobile’s 704 million subscribers, only 79 million are on its 3G network, and Apple has been reluctant to sign up to China Mobile’s under-utilized, homegrown TD-SCDMA technology. “Apple likely doesn’t see the return-on-investment in extending themselves for TD-SCDMA,” Putcha said.

China Mobile is currently trialling its next-generation network, TD-LTE, which could be of more interest to Apple, but full-scale commercial use – and an iPhone tie-up – could still be years away.

ANDROID THREAT

Meanwhile, rivals are circling, eating away at Apple’s smartphone market share. Samsung Electronics, Lenovo Group and little-known Chinese brand Coolpad held the top three slots in the third quarter, according to IDC.

All three have relationships with China Mobile and offer smartphone models at different price points. Apple competes exclusively at the high-end, and even there, rivals are rolling out models with China Mobile. Last week, Nokia said it planned to release its latest Lumia smartphone with China’s top carrier, which is also expected to launch Research in Motion’s new Blackberry 10, analysts predict.

“The threat will still come more from the Android camp where they have many vendors already working with China Mobile and offering high-end phones,” said TZ Wong, a Singapore-based IDC analyst.

While these smartphones don’t generate the buzz of a new iPhone, Chinese buyers are not known for their brand loyalty, and this could siphon away users considering an Apple upgrade.

“I’ve used a Blackberry, Android and iOS and, personally, I want to try the Windows 8,” said Andy Huang, a 37-year-old fund manager, who owns most iPad models, an iPhone 4 and a 4S. “I think the Windows 8 is very innovative.”

With a China Mobile deal looking some way off, Apple could always boost market share by offering cheaper models – the basic iPhone 5 will cost 5288 yuan ($ 850) without a contract – though this appears an unlikely route for a high-end brand.

“If they want to expand market share, probably the only way to do it here dramatically would be to put out a lower cost phone,” said Michael Clendenin, managing director at RedTech Advisors. “It’s really uncertain if they’d decide to go that route … Apple’s a mystery in that regard.”

($ 1 = 6.2518 Chinese yuan)

(Additional reporting by the Shanghai Newsroom and Jane Lee; Editing by Kazunori Takada and Ian Geoghegan)

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Watson returns as Ryder Cup captain

NEW YORK (AP) — The Americans are bringing back Tom Watson as Ryder Cup captain with hopes of ending two decades of defeats in Europe.

"We're just really tired of losing Ryder Cup," PGA of America President Ted Bishop said Thursday during a news conference at the Empire State Building.

Watson faces a tall order.

The Americans have lost seven of the last nine Ryder Cups and have not won away from home since 1993, when Watson was the captain at The Belfry in England. They are coming off a staggering loss this year at Medinah, where Europe strung together a remarkable rally from a 10-6 deficit going into the final day to win by one point.

Watson is the first repeat captain for the U.S. team since Jack Nicklaus in 1987, when the Ryder Cup was played on his home course of Muirfield Village in Ohio. Watson, one of the most respected figures in golf worldwide, becomes the seventh U.S. captain to get more than one shot.

His selection received an immediate endorsement from Tiger Woods, whom Watson has strongly criticized because of Woods' behavior.

"I'd like to congratulate Tom Watson on his selection as Ryder Cup captain," Woods said in a statement. "I think he's a really good choice. Tom knows what it takes to win, and that's our ultimate goal. I hope I have the privilege of joining him on the 2014 United States Team."

Watson had said Woods needs to "clean up his act" in the months after Woods' personal life fell apart after being caught in multiple extramarital affairs, though the Stanford alums have never been particularly close.

Watson went out of his way Thursday to praise Woods as "the best player maybe in the history of the game."

"My relationship with Tiger is fine," he said. "Whatever has been said before is water under the bridge. No issues."

Watson breaks the PGA of America's prototype in a big way. The eight-time major champion will be 65 when the 2014 Ryder Cup is played at Gleneagles in Scotland, making him the oldest captain in Ryder Cup history. Sam Snead was 57 when he was captain in 1969, and the oldest European captain was John Jacobs (56) in 1981.

Watson has not been back to the Ryder Cup since that '93 victory at The Belfry, though he sounded as if he couldn't wait to get started.

The PGA of America first contacted him more than a year ago about the job, Watson, with that familiar gap-tooth grin, replied: "Boy, I've been waiting for this call for a long time."

The matches will be played in Scotland, contributing to Watson's selection. As much as he is beloved around the world for his timeless game, epic duels with Nicklaus and graciousness in any outcome, the Scots consider him one of their own. Watson won his first major at Carnoustie in 1975 when he quickly understood how to play links golf. He won five British Open titles, the most of any American, with four of those in Scotland.

He nearly made it six claret jugs three years ago, when at 59, he came within an 8-foot par putt on the last hole from winning at Turnberry. Watson missed the putt, and then lost to Stewart Cink in a playoff.

The ovation he heard that week in Turnberry might be different at Gleneagles.

"They're going to be cheering against me," he said during a brief appearance on the "Today" show to announce his captaincy.

The PGA of America broke from its model of taking former major champions in their late 40s who still play the PGA Tour and are in touch with the players. Watson last played a full schedule in 1998, though the PGA of America had to wonder if perhaps the young captains were too close to the players.

As for the pressure of bringing back the Ryder Cup?

"This responsibility is a challenge," Watson said. "But I've been there before, and I love it."

__

AP Golf Writer Doug Ferguson contributed to this report.

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World’s Population Living Longer, New Report Suggests

A sharp decline in deaths from malnutrition and diseases like measles and tuberculosis has caused a shift in global mortality patterns over the past 20 years, according to a new report, with far more of the world’s population now living into old age and dying from diseases more associated with rich countries, like cancer and heart disease.

The shift reflects improvements in sanitation, medical services and access to food throughout the developing world, as well as the success of broad public health efforts like vaccine programs. The results are dramatic: infant mortality has declined by more than half between 1990 and 2010, and malnutrition, the No. 1 risk factor for death and years of life lost in 1990, has fallen to No. 8.

At the same time, chronic diseases like cancer now account for about two out of every three deaths worldwide, up from just over half in 1990. Eight million people died of cancer in 2010, 38 percent more than in 1990. Diabetes claimed 1.3 million lives in 2010, double the number in 1990.

But while developing countries made big strides – the average age of death in Brazil and Paraguay, for example, jumped to 63 in 2010, up from 28 in 1970 – the United States stagnated. American women registered the smallest gains in life expectancy of all high-income countries between 1990 and 2010. The two years of life they gained was less than in Cyprus, where women gained 2.3 years of life, and Canada, where women gained 2.4 years. The slow increase caused American women to fall to 36th place in the report’s global ranking of life expectancy, down from 22nd in 1990.

“It’s alarming just how little progress there has been for women in the United States,” said Christopher Murray, director of the Institute for Health Metrics and Evaluation, a health research organization financed by the Bill and Melinda Gates Foundation at the University of Washington that coordinated the report. Rising rates of obesity among American women and the legacy of smoking, a habit women in this country formed later than men, are among the factors contributing to the stagnation, he said.

The World Health Organization issued a statement Thursday saying that some of the estimates in the report differ substantially from those done by United Nations agencies, though others are similar. All comprehensive estimates of global mortality rely heavily on statistical modeling because only 34 countries – representing about 15 percent of the world’s population – produce quality cause-of-death data.

Health experts from more than 300 institutions contributed to the report, which measured disease and mortality for populations in more than 180 countries. It was published Thursday in the Lancet, a British health publication.

The one exception to the trend was sub-Saharan Africa, where infectious diseases, childhood illnesses and maternal causes of death still account for about 70 percent of all illness. In contrast, they account for just one-third in South Asia, and less than a fifth in all other regions. Sub-Saharan Africa also lagged in mortality gains, with the average age of death there rising by fewer than 10 years from 1970 to 2010, compared with a more than 25-year increase in Latin America, Asia and North Africa.

The change means that people are living longer, an outcome that public health experts praised. But it also raises troubling questions. Behavior affects people’s risks of developing noncommunicable diseases like cancer, heart disease and diabetes, and public health experts say it is far harder to get people to change their ways than to administer a vaccine that protects children from an infectious disease like measles.

“Adult mortality is a much harder task for the public health systems in the world,” said Colin Mathers, a senior scientist at the World Health Organization in Geneva. “It’s not something that medical services can address as easily.”

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High & Low Finance: Uncertainty in Washington, Windfall for Others

Let us pause to give credit where credit is due.

The so-called fiscal cliff, and Washington deadlock, dominate the news these days, but the reality is that Congress has accomplished a lot. Thanks to it, as well as to President Obama, action has been taken that will accomplish the following goals:

¶ Provide immediate economic stimulus through the payment of billions of dollars to American individuals.

¶ Significantly increase tax receipts in the current fiscal year, thus reducing the budget deficit, with much of the money coming from higher-income Americans who will voluntarily take steps to increase their 2012 income tax liability.

¶ Bolster charitable giving substantially this year.

¶ Demonstrate which companies rolling in cash have attained that status by keeping profits overseas, rather than bringing them home to reinvest.

Many of those accomplishments could be limited, however, if President Obama and House Speaker John A. Boehner accomplish what everyone says they want: a quick compromise to avoid the automatic tax increases and spending cuts set to begin Jan. 1, and so reduce the uncertainty that is having such beneficial effects.

Each day that passes without a deal brings more companies declaring special dividends, and more high-flying stocks being sold off to capture capital gains that will be taxed at today’s low rates. Tax advisers for wealthy people who have some control over the timing of their income are advising them to take the income now, rather than to defer it to next year.

Among the companies that have declared special dividends in the last few weeks are HCA, once known as Hospital Corporation of America, Costco, the retailer, and a clothing company whose name neatly symbolizes the spirit of this holiday season: Guess Inc.

The guessing concerns the shape of tax law next year. I cannot recall a December with more uncertainty about the following year. The fact the stock market is up this month, albeit only a little, should remind us that the cliché “investors hate uncertainty” is nonsense. There is always uncertainty, but sometimes there are reasons to think things will work out well.

One virtual certainty is that taxes on capital gains and dividends are going up for high-income people — the very people who get most of those types of income. Each is now taxed at 15 percent. At a minimum, the Medicare payroll tax is to be extended to all taxable income over $250,000 for couples and $200,000 for individuals, and raised — for them only — to 3.8 percent on that excess income.

But it could be much worse for people who get a lot of that income. If the Bush tax cuts simply expire — the no-deal case — the top capital gains rate goes to 20 percent, plus the 3.8 percent topper for the high-income people. Dividends lose all tax preferences. They will then be taxed at ordinary income tax rates, which will rise as high as 39.6 percent, plus that 3.8 percent.

You can see the impact of that in the stock market. At the end of the year there is usually “tax loss” selling, as people liquidate their losers to get tax losses to offset other gains. This year there is “tax winner” selling. Most of the stocks in the Standard & Poor’s 100 — basically, the largest companies in the United States — have risen this month. But five of the six stocks that performed best over the last two years have lost ground, including Apple.

As for dividends, there are extras galore — Bloomberg has counted $21 billion worth — not to mention early payments. Many companies decided to accelerate dividends that would normally have been paid in early 2013, and some did more. Oracle decided to push the first three 2013 dividends into this year. Larry Ellison, its founder and chief executive, will have an extra $199 million in dividend income this year.

Not all companies are doing that, of course. Apple, whose balance sheet indicates it is rolling in cash, has not announced any such move. The problem may be that Apple arranges its affairs so that a lot of its profits seem to be overseas. That lets it avoid American corporate taxes until it brings the money home, so paying the money out would force it to pay a lot to Uncle Sam.

Floyd Norris comments on finance and the economy at nytimes.com/economix.

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IHT Rendezvous: Gay Marriage Fight Intensifies in Britain and France

LONDON — The pragmatic Dutch should be forgiven for wondering what all the fuss is about.

A decade after the Netherlands legalized marriage for same-sex couples with a minimum of brouhaha, the issue has spurred a fierce and emotional debate in two other European countries, France and Britain.

The disputes focus on plans by the Socialist government in France and the Conservative-led government in Britain to introduce legislation next year that would allow same-sex marriage.

The British government announced its proposals on Tuesday with a compromise that left both sides of the debate unhappy.

The proposed law specifically excludes the established Anglican churches of England and Wales by forbidding them from marrying same-sex couples, while other faith groups such as Quakers and liberal Reform Jews would be allowed to opt into the system.

That is intended to protect a reluctant Anglican Church from being forced into performing gay marriage ceremonies. But it added to what gay and equal rights activists described as the muddle surrounding law reform.

Peter Tatchell, a veteran gay rights activist, told Pink News that the Conservative proposals actually discriminated against heterosexual couples by denying them the right to a civil partnership, the so-called “marriage lite” that has been available to gay couples in Britain since 2004.

The proposed British compromise looked unlikely to quell opposition within Prime Minister David Cameron’s Conservative Party from those who reject the concept of same-sex marriage on religious, social or moral grounds.

The right-wing United Kingdom Independence Party has threatened to exploit divisions which it said threatened to rip apart the Conservatives’ traditional rural base.

“We feel the prime minister’s proposals will present an affront to millions of people in this country for whom this will be the final straw,” Nigel Farage, the UKIP leader, told The Guardian.

Mr. Farage may be exaggerating the extent of opposition in a country where opinion polls show a majority in favor of allowing same-sex marriage. But, as in France, the opposition is certainly noisy.

Anti-gay marriage groups staged demonstrations across France in October and November that attracted an estimated 100,000 people. The ruling Socialist Party has decided to fight back by throwing its support behind a counter-demonstration due to take place in Paris this weekend.

Romain Burrell, a journalist for a French gay magazine, wrote in The Guardian, “It’s quite simple. The ongoing same-sex marriage debate sparked a renewed wave of homophobia in France.”

He lamented that the opposition conservative U.M.P. had thrown its weight behind the anti-gay marriage campaign.

The Netherlands, meanwhile, appears to have survived unscathed from 11 years of same-sex marriage.

My colleague Celestine Bohlen, in a report from Amsterdam last week, cited polls that showed support for same-sex marriage increased by 20 points to 82 percent in the five years after the Dutch law was introduced.

As Celestine wrote, “Gay or straight, married, divorced, single or cohabiting, the Dutch — like many other Europeans — have been quietly rearranging their family structures over the past decade.”

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‘The Hobbit’: Like One Bad Video Game

Perhaps the most exciting thing about Peter Jackson‘s landmark, blockbuster Lord of the Rings films was that they made fans, through a combination of stunning landscapes and intricate special effects and soaring music and dramatic spectacle, feel as though we were seeing an almost impossible elevation of the potential size and scope of movies. Here was a rich, dense, sprawling series of films that thundered like myths, that were breathtaking in their realization of some pretty huge ambitions. Sure, they were massive corporate projects that earned lots of people millions of dollars, but to the regular moviegoer they were feats that proved the majesty of the movies, the potential to tell enthralling stories that also played like art. And so it’s hugely disappointing, if not all that surprising, that Jackson’s first foray back into the land of Middle Earth, The Hobbit: An Unexpected Journey, is such a sullenly, basely commercial and junky affair, a movie that feels not crafted with Jackson’s seemingly divine inspiration but by the hands of studio executives. Perhaps the reason that Warner Bros. is forgoing the usual console video-game tie-ins for simple mobile games is because the damn movie already looks like a video game, and not a very fun one at that.

RELATED: ‘The Hobbit’ Trailer Needs to Get Out of the Shire

The Lord of the Rings series succeeded aesthetically because it was such an elegant, painting-like wonder to behold. The textures and palettes all had the look of a particularly vibrant illustrated story book, the kind of immersive vision that exists somewhere between imagination and the real world. For The Hobbit, though, Jackson chose to film at a high frame rate and with Real 3D technology in mind — because 3D movies are doing well these days and, hell, doesn’t hurt that the tickets cost more — but the results are frequently hideous. Those among us who have bought shiny new flatscreen TVs over the past few years are likely familiar with the dreaded “Soap Opera Effect,” which turns what should be stunning, glossy images into cheap-looking messes, all strange movement and lighting, like any network soap or cheap British show. (Think Children of Men looking like Torchwood.) It’s the problem of technology over-thinking or over-performing, and it is on startling, gruesome display in The Hobbit. When you’re wearing the 3D glasses (and admittedly sitting a little off to the side), this hugely expensive movie looks like it was shot on a nice handheld digital camera on the cheap. Actors stand in strange contrast to the digital backgrounds behind them, motion looks too slick or unnatural. Gone are the somber vistas and rugged terrain, replaced by eye-aching shine and plastic-y smoothness. The most special effects-heavy sequences look very much like the non-playable parts of modern video games — the exposition bits that can amp up the graphics a bit because they don’t have to worry about the randomness of play, the stuff you see in the commercials, right before the “rated T for teen” part. I don’t know if I just had a bad projector or what, but I spent the bulk of this long movie distracted by how dreadful everything looked. With a few small exceptions — The Shire glows with lovely green, a mountain cave fight/chase sequence is bracingly rich — this is a dismally unattractive movie, featuring too many shots that I’m sure were lovely at some point but are too often ruined and chintzified by the terrible technology monster.

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So on its aesthetic merits, The Hobbit comes up more than short. The trouble is, it’s not rescued by many narrative successes. Jackson has taken largely from the first third of J.R.R. Tolkien‘s novel — about an expedition to reclaim a lost dwarf kingdom from a dragon — but he’s also added in some elements found in appendices detailing an expanded universe that Tolkien included in an edition of The Lord of the Rings. This is partly to flesh out the story as Jackson believes Tolkien meant it to be, but it’s also meant to satisfy the needs of a supersize film trilogy based on one mere book. And so we get several pointless and uninteresting diversions, mostly about dwarves and their bitter enemies the orcs, that read exactly like the filler they are. Jackson is trying to flesh out dwarf mythology, because we spend so much of our time with these little guys, but it feels tediously synthetic, as if there are two movies competing for attention with neither one getting its due. We go to the goblin caves of The Hobbit and then, upon deliverance from that dark place, are thrust right into some kind of honor-and-revenge-based conflict with a snarling, giant, one-armed orc. It’s all very crowded and strangely hurried for a movie that, all told, takes its sweet time.

RELATED: No One Likes Peter Jackson’s New ‘Hobbit’ Footage

I suspect that another of Jackson’s reasons for including all this extra dramatic battling is that, on its own, The Hobbit is something of a children’s book. We’ve got wacky, food-crazed dwarves, a mean old dragon, and a funny little guy to take us along on the journey. Jackson doesn’t deny his movie the kiddie flourishes — there’s snot humor and butt jokes and lots of other goofy stuff involving some trolls, plus two little musical numbers involving all the dwarves — but he then tries to complement them with the big, booming faith and honor stuff and it never properly congeals. One moment we’re on a sprightly children’s adventure, the next we’re talking in big fashion about all that warlike serious business. It’s a discordant mix, and I’d imagine it will leave both kids and adults out in the cold.

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The film is not without its bright spots, rare as they may be. Ian McKellen is a feisty, spirited, mysterious Gandalf as ever before, and Martin Freeman nicely and genially projects everyday hobbit-ness, even if he’s a tad underused in the film. (Yeah, in the movie called The Hobbit, there’s barely any time to focus on the darn Hobbit.) Cate Blanchett turns up once more as the ethereal elf Galadriel, lending the movie a cool classiness and a welcome dose of feminine energy. And, of course, we’re back, for one mesmerizing scene, with our beloved Gollum, so winningly and creepily played by Andy Serkis, and here yet another marvel of computer innovation. In some ways Gollum’s innate cartoonishness works better now than it did in the original trilogy, which is probably the only time that can be said of this movie. There are one or two moments in Gollum’s pivotal scene where he’s given a bit too much modern humor to play, but all told he’s the most welcome sight in the film. Maybe that’s just the newfound purist in me, yearning for the old days, but I suspect it has more to do with Gollum being the only genuinely realized character we’ve so far encountered in this new trio of films. Everyone else is a snoozy lesser version of someone else, especially the ridiculous bloodthirsty orc leader, who snarls and growls like something out of the Underworld movies. Sometimes, in the jumble of the The Hobbit‘s many cluttered and dull action scenes, the frantic blur looks like any sequence from one of those schlocky ’00s B-movies; all roughly hewn CGI clashing around nonsensically, with this orc fellow leading the charge.

RELATED: ‘The Hobbit’ Might Be Three Movies Now?

Despite all the technical advancements, if we can call them that, most moments in The Hobbit feel like Peter Jackson is sadly trying to make all those familiar LOTR elements work for him once more, without ever really being able to reignite the old flame. The supposedly awe-inducing visit to the elf city of Rivendell is a ho-hum experience in this new frame-rate-ruined world. A silly battle sequence involving a wizard, a silly Radagast the Brown, riding around pell-mell on a rabbit-drawn sled looks like an interstitial from late-era Super Mario. Even Elijah Wood, appearing briefly as Frodo, looks strange — a pale ghost of himself, as if stitched in from another movie by some forlorn and desperate hand. The film is inevitably resonant with memories of the original trilogy, and little about it can hold up to the comparison. There’s too much effort in the wrong places — action instead of story, technical tricks instead of actual design — and the constant rhythm of arbitrary event after arbitrary event becomes tiresome well before the film’s two hours and forty minutes have lurched to a halt. I’m sure there are kids who will like this wan, distracted effort — they might not yet have anything else to compare it to, depending on their age — but as a human who remembers what came before, I’m afraid The Hobbit left me nothing but frustrated, sad, and tired. Frustrated that these big-budget visionaries seem to consistently feel they have to taint their earlier masterpieces with techno-junk followups, sad that once magical lands now flicker cheap and garish in my head, and tired at the prospect of two more of these things. I exited the theater trying to remind myself that Attack of the Clones was way better than Phantom Menace and that Revenge of the Sith was better still. I then realized how depressing it was that I was making that comparison. Oh, Middle Earth. What has become of you?

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Williams testified he wanted to stop bounties

Former New Orleans defensive coordinator Gregg Williams testified that he tried to shut down the team's bounty system when the NFL began investigating but was overruled by interim Saints head coach Joe Vitt, according to transcripts from appeals hearings obtained by The Associated Press.

According to the transcripts, Williams said that then-assistant Vitt responded to a suggestion that the pay-for-pain setup be abandoned with an obscenity-filled speech about how NFL Commissioner Roger Goodell "wasn't going to ... tell us to ... stop doing what won us the Super Bowl. This has been going on in the ... National Football League forever, and it will go on here forever, when they run (me) out of there, it will still go on."

Williams and Vitt were among a number of witnesses whose testimony was heard by former NFL Commissioner Paul Tagliabue, who on Tuesday overturned four player suspensions in the case. Tagliabue was appointed by Goodell to handle the final round of appeals. The AP obtained transcripts of Tagliabue's closed-door hearings through a person with a role in the case.

Vitt was a Saints assistant who was banned for six games for his part in the scandal but now is filling in for head coach Sean Payton, who was suspended for the entire season. Williams was suspended indefinitely by Goodell. Others who testified included former defensive assistant Mike Cerullo, the initial whistleblower and considered a key NFL witness.

Transcripts portray the former coaching colleagues, all part of the Saints' 2010 Super Bowl championship, as bitterly disagreeing with one another and occasionally contradicting how the NFL depicted the bounty system.

Vitt, Williams and Cerullo appeared separately before Tagliabue and were questioned by lawyers for the NFL and lawyers representing the players originally suspended by Goodell: Jonathan Vilma, Will Smith, Scott Fujita and Anthony Hargrove.

Tagliabue's ruling found that "Saints' coaches and managers led a deliberate, unprecedented and effective effort to obstruct the NFL's investigation. ..."

The transcripts, which could be entered as evidence in Vilma's pending defamation case against Goodell, include numerous testy, and sometimes humorous, exchanges between witnesses and attorneys — and between Tagliabue and the attorneys.

Offering to take a lie detector test, Vitt challenged versions given by Williams and Cerullo. Vitt vowed to sue Cerullo and described Williams as "narcissistic." He referred to both as disgruntled former employees who were fired, even though, publicly, the Saints said Williams' departure for St. Louis was by mutual agreement. Vitt depicted Cerullo as incompetent and said he missed work numerous times and offered bizarre, fabricated excuses for his absences.

Vitt was asked whether he oversaw Cerullo's attempts to destroy evidence related to bounties, which the NFL determined the Saints sanctioned from 2009 to 2011, with thousands of dollars offered for hits that injured opponents and knocked them out of games.

"No. The answer is no," Vitt said. "Cerullo is an idiot."

Williams referred to the case as "somewhat of a witch hunt." He said he wants to coach in the NFL again, "took responsibility so that nobody else had to," and that Vilma has "been made a scapegoat."

Williams stood by his earlier sworn statement that Vilma pledged a $10,000 bounty on quarterback Brett Favre in the Saints' game against the Minnesota Vikings for the NFC championship. But Williams also said that the performance pool he ran was aimed at team bonding, not bounties, and that he saw a difference between asking players to hit hard legally, which he said he did, and asking them to purposely injure an opponent, which he said no one in the organization condoned.

"The game is about a mental toughness on top of a physical toughness," Williams testified at one point. "You know, it's not golf."

Williams, however, acknowledged he suggested Favre should be knocked out of the game.

"We want to play tough, hard-nosed football and look to get ready to play against the next guy. ... Brett is a friend of mine, and so that's just part of this business," Williams said. "You know, at no time, you know, are we looking to try to end anybody's career."

Williams described player pledges to the pool as "nominal" and said they rarely kept the money they earned, either putting it back in the pool or offering it as tips to equipment personnel. In the case of the large amounts pledged during the playoffs, Williams described it as "air" or "funny money" or "banter," adding that he never actually saw any cash collected or distributed and had no idea what would have happened to the money if Cerullo collected it.

Cerullo testified that league investigators misrepresented what he told them, and that, during the playoffs following the 2009 regular season, he kept track of large playoff pledges on note pads but didn't collect the money.

Cerullo said hits for cash started with Williams telling the staff that "Sean kind of put him in charge of bringing back a swagger to the defense ... so he wanted to brainstorm with us as coaches what we thought we could do. ... At one point in one of those meetings, Joe Vitt suggested (his previous teams) had a pay-for-play, pay-for-incentive program that the guys kind of bought into and kind of had fun with, and, you know, that was his suggestion. At that point, Gregg also admitted that other places he was at, they had the same type of thing. And at that point, Gregg kind of ran with it."

Cerullo described pregame meetings during the playoffs, when the Saints faced quarterback Kurt Warner of the Arizona Cardinals and then Favre.

He said Vitt told players Warner "should have been retired" and "we're going to end the career tomorrow of Kurt Warner." Cerullo also quoted Vitt as saying of Favre: "That old man should have retired when I was there. Is he retiring, isn't he retiring — that whole (thing) is over, you know, tomorrow. ... We'll end the career tomorrow. We'll force him to retire. ..."

Cerullo testified that, once word came that the NFL was investigating, Williams told him to delete computer files about bounty amounts and that Vitt checked on his progress.

Asked what motivated him to come forward as a whistleblower with an email to the league in November 2011, Cerullo replied: "I was angry for being let go from the Saints."

Later, he testified: "I was angry at Joe Vitt, and I wanted to show that I was fired for lying and I witnessed Joe Vitt lying and he still had a job. So, that was my goal of reaching out to the NFL."

The transcripts also portray Tagliabue's command of the proceedings, including his efforts to rein in the lawyers.

"I'm going to intervene much more significantly, going forward," Tagliabue interjected at one point, "because I am extremely concerned that this is getting to be cumulative, confusing and useless, and I do not preside over proceedings that are cumulative, confusing and useless."

There also were lighter moments, such as when Tagliabue announced: "I thought I was going to get through this proceeding only by drinking coffee. I'm getting to the point where I need a Bloody Mary."

___

Connect with Brett Martel on Twitter at http://twitter.com/brettmartel

Connect with Howard Fendrich on Twitter at http://twitter.com/HowardFendrich

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Seeking Allies Among Syrian Rebels, U.S. Instead Finds Hostility

Narciso Contreras/Associated Press

Free Syrian Army fighters aimed their weapons during heavy clashes with government forces in Aleppo.

BEIRUT, Lebanon — As the United States tries attempts to rally international support for the Syrian rebellion, trying to herd the opposition into a shadow government that it can recognize and assist, on the ground in Syria it faces an entirely different problem: Much of the rebellion is hostile toward America.

Frustration mounted for months as the United States sat on the sidelines, and peaked this week when it blacklisted the Nusra Front, one of the uprising’s most effective fighting forces, calling it a terrorist organization. The move was aimed at isolating the group, which according to Iraqi and American officials has operational ties to Al Qaeda’s franchise in Iraq.

But interviews with a wide range of Syrian rebels and activists show that for now, the blacklisting has appeared to produce the opposite. It has united a broad spectrum of the opposition — from Islamist fighters to liberal and nonviolent activists who fervently oppose them — in anger and exasperation with the United States. The dissatisfaction is over more than just the blacklisting, and raises the possibility that now, just as the United States is stepping up efforts to steer the outcome in Syria, it may already be too late.

More than 100 antigovernment organizations and fighting battalions have called online for demonstrations on Friday under the slogan, “No to American intervention — we are all Jabhet al-Nusra,” a reference to the group’s Arabic name.

Syrians across the political spectrum say the United States allowed more than 40,000 people to die in the 21-month conflict. Supporters of the Syrian president, Bashar al-Assad, call the uprising a creation of the West and its allies. His opponents excoriate the United States for failing to provide arms and leaving them to perish — and have begun to express a growing wariness of American involvement in Syria’s political future.

“Anti-American sentiment is growing, because the Americans are messing up in bigger ways lately,” said Nabil al-Amir, an official spokesman for the rebel military council for Damascus and its suburbs, one of the committees that the United States and its allies are trying to coax into a unified rebel command. With every step to correct earlier mistakes, he said, “they make a bigger mess.”

Liberals activists blame American inaction for giving jihadists a leading role in the conflict. Rival rebel groups have declared solidarity with the Nusra Front, and Islamists have congratulated it on its new distinction. And seemingly everyone accuses the United States of hypocrisy for not putting a terrorist label on Mr. Assad, whose forces have killed far more civilians than any rebel group.

The United States scrambled on Tuesday to contain the damage, issuing a more complete justification for blacklisting the Nusra Front and stressing that the group has killed Syrian civilians in more than 40 suicide bombings. And it announced a new wrinkle: It is also blacklisting pro-government militias accused of killing civilians as part of “the Assad regime’s campaign of terror and violence.”

The militias, a Treasury Department statement said, would include what it called “the Shabiha” and Jaish al-Sha’bi, or the People’s Army, which it said was created with the help of Mr. Assad’s allies Iran and the Lebanese Shiite group Hezbollah and was modeled on Iran’s Basij militia.

But it may be hard to define who exactly is blacklisted under the heading of “shabiha,” which is not the name of an organization but a catchall term for pro-government gangs. The People’s Army is a nascent group, an apparent effort to turn those informal militias into a paramilitary organization.

Criticizing America has become a favorite sideline of antigovernment activists. Some have even questioned the sincerity of President Obama’s recent warning that Mr. Assad would be crossing “a red line” if he used chemical weapons on Syrians.

At a recent demonstration, solemn-eyed boys posed for a photograph that spread online with the title “Red line or green light?” They held a poster of a traffic light, emblazoned with an American flag, shining green for Mr. Assad as he drives a truck laden with chemical weapons.

Demonstrators in Kafr Nabl, a northern Syrian town known lately for its witty antigovernment slogans, quickly mocked the blacklisting with a poster that showed a cartoonish Mr. Assad, with jutting ears, a diabolical grimace and a bloody dagger in each hand, standing over a pile of corpses. One of the dead held a black banner with an Islamic slogan as Mr. Obama, his back to the massacre, pointed at the banner and said, “Terrorist!”

Michael R. Gordon contributed reporting from Washington.

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Microsoft ups Surface production, to sell in more stores

SEATTLE (Reuters) – Microsoft Corp has stepped up manufacturing of the Surface tablet, its new device designed to counter Apple Inc‘s iPad, and will introduce it to third-party retailers this week.

The moves suggest Microsoft is seeing some demand for its first own-brand computer in the crucial holiday shopping season, although it has yet to divulge any sales figures.

“The public reaction to Surface has been exciting to see,” said Panos Panay, general manager of Microsoft’s Surface project, which forms part of the company’s Windows unit.

“We’ve increased production and are expanding the ways in which customers can interact with, experience and purchase Surface,” said Panay, but gave no details of how many extra units were being produced.

Panay did not mention names of retailers that will sell the Surface, but separately office equipment retailer Staples Inc said it would stock the tablet from Wednesday.

He said the Surface would also be on sale at retailers in Australia from mid-December, with more countries to follow in the next few months.

Since launch in late October, the Surface has only been sold by Microsoft itself, in its own brick and mortar stores in the United States and Canada and online in Australia, China, France, the UK and Germany.

The only Surface model available now – officially called Surface with Windows RT – runs a version of Windows created to work on the low-power chips designed by ARM Holdings, which dominate smartphones and tablets but are incompatible with old Windows applications.

It starts at $ 499 for the 32 gigabyte version plus $ 120 for a thin cover that doubles as a keyboard.

A larger, heavier tablet – called Surface with Windows 8 Pro – will be introduced in January, running on an Intel Corp chip that works with all Microsoft’s Windows and Office applications. Microsoft plans to price the new Surface from $ 899 for a 64 gigabyte version.

The world’s largest software company also said it would keep its chain of ‘pop-up’ holiday stores open into the new year and will convert them into permanent retail outlets or what it called “specialty store locations”.

Microsoft’s recent push into physical retail – following Apple’s great success – has resulted in 31 permanent stores plus 34 holiday ‘pop-up’ stores in the U.S. and Canada.

If Microsoft converted each of the temporary stores into permanent outlets it would have 65 stores, still well below Apple with almost 400 worldwide.

(Reporting by Bill Rigby in Seattle, Sruthi Ramakrishnan in Bangalore)

Tech News Headlines – Yahoo! News

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Tagliabue overturns Goodell on Saints suspensions

NEW ORLEANS (AP) — In a sharp rebuke to his successor's handling of the NFL's bounty investigation, former Commissioner Paul Tagliabue overturned the suspensions of four current and former New Orleans Saints players in a case that has preoccupied the league for almost a year.

Tagliabue, who was appointed by Commissioner Roger Goodell to handle the appeals, still found that three of the players engaged in conduct detrimental to the league. He said they participated in a performance pool that rewarded key plays — including bone-jarring hits — that could merit fines. But he stressed that the team's coaches were very much involved.

The entire case, he said, "has been contaminated by the coaches and others in the Saints' organization."

The team's "coaches and managers led a deliberate, unprecedented and effective effort to obstruct the NFL's investigation," the ruling said.

Tagliabue oversaw a second round of player appeals to the league in connection with the cash-for-hits program run by former defensive coordinator Gregg Williams from 2009-2011. The players initially opposed his appointment.

Saints linebacker Jonathan Vilma had been given a full-season suspension, while defensive end Will Smith, Cleveland linebacker Scott Fujita and free agent defensive lineman Anthony Hargrove each received shorter suspensions.

Tagliabue cleared Fujita of conduct detrimental to the league.

"I affirm Commissioner Goodell's factual findings as to the four players. I conclude that Hargrove, Smith and Vilma — but not Fujita — engaged in 'conduct detrimental to the integrity of, and public confidence in, the game of professional football,'" the ruling said.

"However, for the reasons set forth in this decision, I now vacate all discipline to be imposed upon these players. Although I vacate all suspensions, I fully considered but ultimately rejected reducing the suspensions to fines of varying degrees for Hargrove, Smith and Vilma. My affirmation of Commissioner Goodell's findings could certainly justify the issuance of fines. However ... this entire case has been contaminated by the coaches and others in the Saints organization," it said.

Saints quarterback Drew Brees offered his thoughts on Twitter: "Congratulations to our players for having the suspensions vacated. Unfortunately, there are some things that can never be taken back."

None of the players sat out any games because of suspensions. They have been allowed to play while appeals are pending, though Fujita is on injured reserve and Hargrove is not with a team.

Shortly before the regular season, the initial suspensions were thrown out by an appeals panel created by the league's collective bargaining agreement. Goodell then reissued them, with some changes, and now those have been dismissed.

Now, with the player suspensions overturned, the end could be near for a nearly 10-month dispute over how the NFL handled an investigation that covered three seasons and gathered about 50,000 pages of documents.

"We respect Mr. Tagliabue's decision, which underscores the due process afforded players in NFL disciplinary matters," the NFL said in a statement.

"The decisions have made clear that the Saints operated a bounty program in violation of league rules for three years, that the program endangered player safety, and that the commissioner has the authority under the (NFL's collective bargaining agreement) to impose discipline for those actions as conduct detrimental to the league. Strong action was taken in this matter to protect player safety and ensure that bounties would be eliminated from football."

Meanwhile, the players have challenged the NFL's handling of the entire process in federal court, but U.S District Judge Ginger Berrigan had been waiting for the latest round of appeals to play out before deciding whether to get involved.

NFL investigators found that Vilma and Smith were ring leaders of a cash-for-hits program that rewarded injurious tackles labeled as "cart-offs" and "knockouts." The NFL also concluded that Hargrove lied to NFL investigators to help cover up the program.

Goodell also suspended Williams indefinitely, while banning Saints head coach Sean Payton for a full season.

Tagliabue's ruling comes after a new round of hearings that for the first time allowed Vilma's attorneys and the NFL Players Association, which represents the other three players, to cross-examine key NFL witnesses. Those witnesses included Williams and former Saints assistant Mike Cerullo, who was fired after the 2009 season and whose email to the league, accusing the Saints of being "a dirty organization," jump-started the probe.

"We believe that when a fair due process takes place, a fair outcome is the result," the players' union said in a statement. "We are pleased that Paul Tagliabue, as the appointed hearings officer, agreed with the NFL Players Association that previously issued discipline was inappropriate in the matter of the alleged New Orleans Saints bounty program.

"Vacating all discipline affirms the players' unwavering position that all allegations the League made about their alleged 'intent-to-injure' were utterly and completely false.

"We are happy for our members."

A statement released on Vilma's behalf said the linebacker is "relieved and gratified that Jonathan no longer needs to worry about facing an unjustified suspension.

"On the other hand, Commissioner Tagliabue's rationalization of Commissioner Goodell's actions does nothing to rectify the harm done by the baseless allegations lodged against Jonathan. Jonathan has a right and every intention to pursue proving what really occurred and we look forward to returning to a public forum where the true facts can see the light of day."

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