supply chain

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Citi slashes sales outlook for iPhone XS Max by nearly half

Citi Research has joined a growing list of analysts to lower first-quarter production estimates for Apple’s iPhones amid weakening demand for the smartphones.

Citi Research analyst William Yang cut the overall iPhone shipment forecast by 5 million, to 45 million for the quarter, reported Reuters. That’s a sting that falls in line with others such as influential TF International Securities Apple analyst Ming-Chi Kuo, who delivered a less than stellar iPhone forecast earlier this month.

It’s Yang’s outlook for the 6.5-inch iPhone XS Max that is particularly gloomy. In a research note to clients, Yang slashed the shipment forecast for the iPhone XS Max by 48 percent for the first quarter of 2019.

The cut in Citi’s forecasts is driven by the firm’s view that “2018 iPhone is entering a destocking phase, which does not bode well for the supply chain,” Yang wrote.

Two weeks ago, Kuo predicted that 2019 iPhone shipments will likely between 5 to 10 percent lower than 2018. He also lowered first-quarter shipment forecasts by 20 percent.

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This startup got $2.3M to identify physical objects using diamond dust

Imagine coating an expensive part with a layer of diamond dust the width of a human hair, capturing its light pattern as a unique identifier, then storing that identifier in a traditional database or on the blockchain. That’s precisely what Dust Identity, a Boston-based startup, is trying to do, and today it got $2.3 million in seed money led by Kleiner Perkins with participation from New Science Ventures, Angular Ventures and Castle Island Ventures.

The science behind Dust Identity was nurtured inside MIT, but the company has been at work for two years trying to build a solution based on that idea after receiving early support from DARPA. What these folks do is manufacture extremely tiny diamonds. They dust an object such as a circuit board with a coating of this and capture the diamonds in a polymer, company CEO and co-founder Ophir Gaathon explained.

“Once the diamonds fall on the surface of a polymer epoxy, and that polymer cures, the diamonds are fixed in their position, fixed in their orientation, and it’s actually the orientation of those diamonds that we developed a technology that allows us to read those angles very quickly,” Gaathon told TechCrunch.

For all the advanced technology at play here, Dust Identity is truly an identity company, but instead of identifying an individual, its purpose is to provide a trusted identity for an object using a physical anchor — in this case, diamond dust. You may be thinking that diamonds are kind of an expensive way to achieve this, but as it turns out, the company is actually creating the coating materials from low-cost diamond industrial waste.

“We start with diamond waste (for example, [from] the abrasive industry), but we developed a proprietary process (that’s of course highly scalable and economical) to purify and engineer the diamond waste into dust,” a company spokesperson explained.

The idea behind all of this is to prove that an object is valid and hasn’t been tampered with. The dust is applied at some point during the manufacturing process. The unique identifier is captured with some kind of commercial scanner and stored in the database. It provides a physical anchor for blockchain supply chain solutions that’s currently lacking. When the part makes its way to the buyer, they can run the part under a scanner and make sure it matches. If the dust pattern has been disturbed, there’s a good chance the piece was tampered with.

Finding a way to create uncopyable tags for physical objects is a kind of supply chain Holy Grail. Ilya Fushman, a partner at Kleiner Perkins, says his firm recognized the potential of this solution. “We have a pretty strong hard tech practice. We understand the value of supply chain and supply chain integrity,” he said.

The company is not alone in trying to find a way to attach a physical anchor to items in the supply chain. In fact, you can go back to RFID tags and QR codes, but Gaathon says the security of these approaches has degraded over time as hackers figure out how to copy them. IBM and others are working on tiny chips to attach to objects, but the diamond dust approach could be the most secure if it can scale because it works with an entirely random light pattern that can never be reproduced.

The startup intends to take the money and try to prove this idea can be commercialized for government and manufacturing use cases. It certainly gets points for creativity here and it could be onto something that could transform how we track the integrity of items as they move through a supply chain.

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Enveritas’ technology lets small growers tap into the market for sustainable coffee

Demand for sustainable coffee is growing, a boon for socially conscious coffee lovers — but many small growers are missing out because they lack the ability to verify that their coffee beans are grown using fair labor and eco-friendly practices. In fact, verification is often accessible only to large coffee estates or cooperatives. Enveritas wants to change that. The nonprofit, which recently completed Y Combinator’s accelerator program, uses geospatial analysis to make the process more efficient, enabling it to offer free verification to small farms.

Enveritas’ goal is to end poverty in the coffee sector by 2030. Before founding Enveritas in 2016, CEO David Browning and head of operations Carl Cervone worked at TechnoServe, a nonprofit that serves businesses in developing economies. Browning led TechnoServe’s global coffee practice, while Cervone advised coffee growers in Africa, Asia and Latin America about sustainability trends.

Browning tells TechCrunch that TechnoServe’s coffee team spent a lot of time working with small farmers, many of whom don’t have access to sustainability verification because their farms are too remote or small. The typical coffee grower served by Enveritas has less than two hectares of land, lives on less than $2 a day and relies on cash crops for their family’s income.

“The existing solutions work well for large estates and it can also be effective for farmers organized into cooperatives, but many of the world’s coffee farmers are smaller farmers and not organized into estates,” Browning explains. “For those farmers, the existing solutions can be more difficult to access.”

Part of the reason is because many verification solutions rely on field workers who visit farms and track sustainability standards using pen and paper, a time-consuming and costly process.

To develop a more efficient and scalable system, Enveritas uses geospatial and machine learning to identify coffee farms through satellite imagery and monitor for issues like deforestation. Though it still relies on local partners to visit farms and confirm that sustainability standards are being followed, its technology enables Enveritas to provide verification services for free.

Enveritas checks for 30 standards, which it divides into three categories: social, environmental and economic. “Social” includes no child labor and workers’ rights; “environmental” checks for problems like deforestation, pollution or banned pesticides; and “economic” covers fair wages, ethical business practices and transparent pricing, among other standards.

The organization currently operates in 10 countries, including Uganda, Indonesia, Ethiopia, Nicaragua and Costa Rica, with plans to expand into more markets.

Sustainable coffee isn’t just in demand by caffeine lovers with a penchant for social justice. Many of the world’s biggest coffee companies, including Illy and Starbucks, have launched sustainability initiatives as part of their corporate responsibility measures. Offering coffee grown using fair labor or environmentally friendly practices also helps differentiate their products in a crowded marketplace. Research by the National Coffee Association, an American trade group, recently found that many millennials prefer sustainable coffee, with up to two-thirds of 19 to 24-year-olds surveyed said they pick their coffee based on whether it was grown using environmentally friendly practices and fair labor.

While coffee is currently its main focus, Browning says Enveritas’ system can be applied to other agricultural products that need more visibility in their supply chains. For example, it also can be used to verify the sustainability of cocoa, cotton and palm oil.

As a nonprofit, Enveritas faces different funding challenges from other tech startups. Browning says it is currently at the equivalent of being ready for a Series A. Much of its backing comes from coffee companies (Enveritas can’t disclose which ones) that hope to benefit from Enveritas’ solutions.

“One of the advantages of this system is that it reduces the cost for coffee companies relative to the traditional pen and paper system, but it’s also simultaneously free for farmers,” Browning says. “That’s one of the most compelling innovations, so it’s a win-win for both.”

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Some low-cost Android phones shipped with malware built in

Avast has found that many low-cost, non-Google-certifed Android phones shipped with a strain of malware built in that could send users to download apps they didn’t intend to access. The malware, called called Cosiloon, overlays advertisements over the operating system in order to promote apps or even trick users into downloading apps. Devices effected shipped from ZTE, Archos and myPhone.

The app consists of a dropper and a payload. “The dropper is a small application with no obfuscation, located on the /system partition of affected devices. The app is completely passive, only visible to the user in the list of system applications under ‘settings.’ We have seen the dropper with two different names, ‘CrashService’ and ‘ImeMess,’” wrote Avast. The dropper then connects with a website to grab the payloads that the hackers wish to install on the phone. “The XML manifest contains information about what to download, which services to start and contains a whitelist programmed to potentially exclude specific countries and devices from infection. However, we’ve never seen the country whitelist used, and just a few devices were whitelisted in early versions. Currently, no countries or devices are whitelisted. The entire Cosiloon URL is hardcoded in the APK.”

The dropper is part of the system’s firmware and is not easily removed.

To summarize:

The dropper can install application packages defined by the manifest downloaded via an unencrypted HTTP connection without the user’s consent or knowledge.
The dropper is preinstalled somewhere in the supply chain, by the manufacturer, OEM or carrier.
The user cannot remove the dropper, because it is a system application, part of the device’s firmware.

Avast can detect and remove the payloads and they recommend following these instructions to disable the dropper. If the dropper spots antivirus software on your phone it will actually stop notifications but it will still recommend downloads as you browse in your default browser, a gateway to grabbing more (and worse) malware. Engadget notes that this vector is similar to the Lenovo “Superfish” exploit that shipped thousands of computers with malware built in.

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Ethereum falls after rumors of a powerful mining chip surface

Rumors of a new ASIC mining rig from Bitmain have driven Ethereum prices well below their one-week high of $585. An ASIC – or Application-specific integrated circuit – in the cryptocurrency world is a chip that designers create for the specific purpose of mining a single currency. Early Bitcoin ASICs, for example, drove adoption up and then, in some eyes, centralized Bitcoin mining in a few hands, thereby thwarting the decentralized ethos of die-hard cryptocurrency fans.

According to a CNBC report, analyst Christopher Rolland visited China where he unearthed rumors of a new ASIC chip dedicated to Ethereum mining.

“During our travels through Asia last week, we confirmed that Bitmain has already developed an ASIC [application-specific integrated circuit] for mining Ethereum, and is readying the supply chain for shipments in 2Q18,” analyst Christopher Rolland wrote in a note to clients Monday. “While Bitmain is likely to be the largest ASIC vendor (currently 70-80% of Bitcoin mining ASICs) and the first to market with this product, we have learned of at least three other companies working on Ethereum ASICs, all at various stages of development.”

Historically users have mined Ethereum using GPUs which, in turn, led to the unavailability of GPUs for gaming and graphics. However, an ASIC would change the mining equation entirely, resulting in a certain amount of centralization as big players – including Bitmain – created higher barrier to entry for casual miners.

“Ethereum is of the most profitable coins available for GPU mining,” said Mikhail Avady, founder of TryMining.com. “It’s going to affect a lot of the market. Without understanding the hash power of these Bitmain machines we can’t tell if it will make GPUs obsolete or not.”

“It can be seen as an attack on the network. It’s a centralization problem,” he said.

Avady points out that there is a constant debate among cryptocurrency aficionados regarding ASICs and their effect on the market. Some are expecting a move to more mineable coins including Monero and ZCash.

“What would be bad is if there was only one Ethereum ASIC manufacturer,” he said. “But with Samsung and a couple other players getting into the game it won’t be bad for long.”

There is also concern over ICO launches and actual utility of Ethereum-based smart contract tokens. “The price of ETH is becoming consolidated as people become more realistic about blockchain technology,” said Sky Guo, CEO of Cypherium. “People are looking for higher quality blockchain projects. I believe a rebound in ETH’s price will come soon as panic surrounding regulations begins to fade.”

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From Food To Flowers: The Push For Supply Chain Transparency

blossoming garden buttercups for export Try to figure out exactly where fresh products come from in a grocery store. The stickers may say “Mexico” or “Colombia,” but those are big places, and labels like this don’t give much insight. Research online; the information isn’t there. Try with a few other products, and you’re likely to find the same thing. Companies are not always forthcoming… Read More

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What Happened To The Food Industry Last Year?

food groceries By the time you read this, you will be aware of the U-turn our food system is making to find new, personalized, localized ways to your plate. Last year was a bellwether year for food systems, specifically food distribution systems. In 2016, the traditional method of delivering food from farms to tables is going to shift to include new players, more technology and shocking transparency. Read More

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Initial Apple Watch Orders Pegged At Between 5 And 6 Million

Apple Watch Music The Apple Watch is coming very soon, with a launch date of April offered by none other than Apple CEO Tim Cook, so understandably, the supply chain is moving to meet initial demand. Apple has ordered between five and six million devices to be produced in preparation for the kick-off of sales, the Wall Street Journal reports today, a figure which puts Apple’s expected demand for its… Read More

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