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Monday, August 31, 2020

One of the largest internet outages ever recorded occurred this weekend - TechRadar

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Following a misconfiguration in one of its data centers, the US internet service provider (ISP) CenturyLink suffered a major technical outage that spread across the internet taking down many popular sites and services on Sunday.

The error at the company's data center spread outward from its network and also ended up impacting other ISPs, which led to connectivity problems for many other companies including Amazon, Twitter, NameCheap, OpenDNS, Reddit, Discord, Hulu, Steam and others.

Cloudflare was also severely impacted by CenturyLink's outage and in a blog post, CEO and co-founder of the web infrastructure and website security company Matthew Prince explained how the incident affected the internet as a whole, saying:

“Because this outage appeared to take all of the CenturyLink/Level(3) network offline, individuals who are CenturyLink customers would not have been able to reach Cloudflare or any other internet provider until the issue was resolved. Globally, we saw a 3.5% drop in global traffic during the outage, nearly all of which was due to a nearly complete outage of CenturyLink’s ISP service across the United States.”

Incorrect Flowspec rule

Based on information from a CenturyLink status page, it appears the issue originated in the ISP's CA3 data center in Mississauga, located in Canada's Ontario province.

As its own services were affected by the outage, Cloudflare paid close attention and believes that an incorrect Flowspec rule that came at the end of a long list of BGP updates may have caused it. 

If this was the case, every router in CenturyLink/Level(3)'s network would have received the Flowspec rule and started blocking BGP, which would lead them to stop receiving the rule.

The devices would then start back up, work their way through all the BGP rules until they got to the incorrect Flowspec rule and BGP would once again be dropped, creating an endless loop.

BGP routes are a type of message that internet companies relay between each other to inform each internet provider which group of IP addresses is available on their network. However, CenturyLink's incorrect Flowspec rule also brought down some routers outside of its network which began to announce incorrect BGP routes to other Tier 1 internet services. This brought down other networks, causing the major internet outage experienced over the weekend.

Thankfully, CenturyLink was able to fix the issue by telling all other Tier 1 internet providers to ignore any traffic coming from its network. This type of action is usually a last resort as it results in all of the company's customers losing internet connectivity.

Via ZDNet




August 31, 2020 at 11:54PM
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One of the largest internet outages ever recorded occurred this weekend - TechRadar

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Two chess champions crowned online after internet outage - New York Daily News

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“The Online Chess Olympiad has been impacted by a global internet outage, that severely affected several countries, including India,” International Chess Federation president Arkady Dvorkovich said in a statement. “Two of the Indian players have been affected and lost connection, when the outcome of the match was still unclear.”




August 31, 2020 at 10:53AM
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Two chess champions crowned online after internet outage - New York Daily News

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Huawei to end oldest sports sponsorship deal in world with Australian rugby league team Canberra Raiders: report - Fox Business

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CANBERRA, Australia — Chinese telecom giant Huawei announced on Monday it is ending its oldest major sporting sponsorship deal in the world when it ends its contract with Australian rugby league team Canberra Raiders after nine years, blaming a “continued negative business environment.”

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Australia has barred the world’s largest maker of switching gear and a major smartphone brand from involvement in crucial national communication infrastructure in recent years, while China has ratcheted up pressure for an Australian policy reversal.

Huawei will end its financial backing of the Raiders at the end of the current National Rugby League season. The grand final is on Oct. 25.

RUGBY STAR SIA SOLIOLA REVEALS EXTENT OF HIS FACIAL INJURES ON SOCIAL MEDIA

Last year, Huawei renewed its sponsorship deal for two years until the end of the 2021 season.

“The continued negative business environment is having a larger than originally forecasted impact on our planned revenue stream and therefore we will have to terminate our major sponsorship of the Raiders at the end of the 2020 season,” a Huawei statement said.

Aiden Sezer of the Canberra Raiders celebrates kicking a field goal to wing the round 12 NRL match between the Canberra Raiders and the Manly Sea Eagles at GIO Stadium on May 25, 2018 in Canberra, Australia. (Photo by Mark Nolan/Getty Images/FILE)

The Raiders is the only team in the national competition based in the Australian capital Canberra, the center of government and national policy-making.

Huawei’s landmark decision to sponsor the team in 2012 came months after the government banned the company on security grounds from involvement in the rollout of Australia’s National Broadband Network in 2011.

The sponsorship was seen as an attempt to improve Huawei’s public image in the eyes of lawmakers and senior bureaucrats who barrack for the Canberra team.

Raiders board member Dennis Richardson, a former head of the Defense Department and of the main domestic spy agency, Australian Security Intelligence Organization, had been a vocal supporter of Huawei’s sponsorship deal.

FANS SAVOR RETURN OF STADIUM SPORT IN VIRUS-FREE NEW ZEALAND

Huawei Australia’s chief corporate affairs officer Jeremy Mitchell suggested that a decision of Prime Minister Malcolm Turnbull’s government in 2018 to ban the company from Australia’s 5G networks was at least part of the sponsorship decision.

“Even after the Turnbull government banned us from 5G we managed to find the resources to continue the sponsorship, but we just can’t financially support it any longer,” Mitchell said in a statement.

The statement makes no mention of the coronavirus pandemic’s impact on the business environment.

Raiders chief executive Don Furner said the team was “very sad” to be losing its major sponsor. Neither Huawei nor the team has ever made public the value of the sponsorship.

“The Canberra Raiders and Huawei have enjoyed a fantastic partnership for nearly a decade – they have been by far our longest serving major sponsor,” Furner said in a statement.

China has made Australia lifting its ban on Huawei on essential infrastructure a condition of turning around strained bilateral relations. The diplomatic relationship has since worsened because Australia called for an independent inquiry into the origins of and international responses to the coronavirus pandemic.GET FOX BUSINESS ON THE GO BY CLICKING HERE

The Raiders have become more successful in recent years. The Raiders were runners up in last year’s premiership and are ranked fifth in the current season. They last won a premiership in 1994.

Huawei is at the center of a major dispute between Washington and Beijing over technology and security. U.S. officials say Huawei is a security risk, which the company denies, and are lobbying European and other allies to avoid its technology as they upgrade to next-generation networks.

China, meanwhile, is trying to encourage Europeans to guarantee access to their markets for Chinese telecom and technology companies.

Huawei is suffering as Washington intensifies a campaign to slam the door on access to foreign markets and components in its escalating feud with Beijing.

European and other phone carriers that bought Huawei gear despite U.S. pressure are removing it from their networks. Huawei got a flicker of good news when it passed rivals Samsung and Apple as the No. 1 smartphone brand in the quarter ending in June thanks to sales in China, but demand abroad is plunging.




August 31, 2020 at 10:46AM
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Burning Man 2020 Goes All-In On Virtual Reality With 'Multiverse' - CBS San Francisco

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SAN FRANCISCO (CBS SF) — This same time last year, tens of thousands of Americans were determining what they wanted to bring to an unforgiving desert and set on fire. It could have been a piece of paper, a memento, a sculpture, a wooden humanoid.

For a week or so at the end of summer, thousands would pack into their vans, campers and art cars to spend some of the hottest days of the year in the Nevada desert dancing, doing yoga, mingling, making art and, of course, burning the Man. This year, the community is taking to the virtual world — or rather, eight of them.

Burning Man is another pillar of the artistic community in the Bay Area and beyond compromised by the ongoing coronavirus pandemic. It began on Baker Beach in San Francisco on the night of the summer solstice in 1986. The first “Man” burned was only 8 feet tall and, according to Burning Man pioneers Larry Harvey and Jerry James, the first crowd totaled 35 people.

After growing interference from San Francisco law enforcement, the first Burn in the Black Rock Desert took place in 1990, where it continued until this year. The organization’s website offers a comprehensive timeline of the gathering’s origins from a spontaneous meetup at the beach to a “city” the physical size of San Francisco with its own airport and hospital and dozens upon dozens of eccentric art communities and camps.

Burning Man 2020: Multiverse

In 2019, nearly 80,000 people from more than 25 countries congregated in the midst of over 400 art installations and the pyrotechnic Man standing 61 feet tall. None of that can happen this year but there will still be plenty to see and plenty of ways to safely participate in emotional immolation in Burning Man Multiverse: A global quantum kaleidoscope of possibility.

Burning Man’s creative initiatives director Kim Cook has a hard time describing Burning Man. She’s not really a Burner, in fact her first experience there was her job interview on the Playa five years ago. But she’d known about it back in the ’90s when she was running a theater company in San Francisco; she let local Burners work on their art pieces in the company warehouse when it got too hot outside in the summer.

“People encouraged me to come; a lot of people I knew were going and coming back and raving about it,” Cook said. “One of the things people often say is, Burning Man is so personal: every experience will be unique to that individual. It’s really best to describe it to the personal and the particular and not the general.”

Although, there are some universals: artistic innovation, crazy outfits, camping blunders, “mutant vehicles,” yoga, alkaline dust everywhere, and camps purporting themes like pizza, choir, BDSM, and even a “Kidsville.”

Cook says that the Burning Man board started mobilizing for a virtual launch back in early April, mere weeks after quarantine measures were put in place. Fourteen thousand Burners responded to a survey supporting a virtual Burn and, so, the Multiverse was born.

There’s something for everyone, and all levels of access to technology. One world, SparkleVerse, despite broadcasting from the United Kingdom, just requires a computer and internet connection. These interactive parties began in early quarantine and use a mix of Zoom rooms and animation to host DJ parties, “erotic experiences” and opportunities to meet fellow Burners. Another, The Infinite Playa, hosts a hyper-realistic Black Rock Desert you can view on your phone, down to the cracks in the earth beneath your avatar’s feet.

Athena Demos is one of the minds facilitating BRCvr — Black Rock City virtual reality. The concept is actually not new. She and her collaborators Doug Jacobson and Greg Edwards came up with a virtual landscape to archive the art and experiences of years past back in 2014. When they brought the idea to the higher-ups, Demos says that “they didn’t really get it” because, at the time, it was primarily an archive. Enter the coronavirus.

A week before they announced a virtual burn for 2020, BRCvr was uploaded onto the AltspaceVR platform.

“I call it Nostalgia Burn,” Demos says over Zoom from Mexico, where she is currently helping coordinate the launch, set for Aug. 30. Every day, there are more pixels to render and more avatars to accommodate and more art to fit into the virtual desert; it changes daily, and unlike the physical manifestations, this Black Rock City can curate decades worth of art and layer people’s experiences. Avatars can move between camps and art installations through designated portals, and guests are organized into 50-odd member groups to socialize. Apparently, you can even fly.

“Right now it looks like Burning Man 2014, based on that experience. It incorporates art from all the years, all the way from 2002. It feels like I’m home,” she says, smiling.

Demos would know. She’s been a Burner since 1999 and she calls herself a “99er.” She’s been a recognized regional contact for Burners in Los Angeles for over a decade, coordinating artists, orienting newcomers, leading Burners Without Borders initiatives and more. She is in the midst of slowly stepping down from her role; she says she has 14 replacements lined up to share her workload.

You don’t necessarily need a VR headset to experience BRCvr, but it does help. Guests create avatars to represent them in dust-free, virtual space. Avatars “arrive” at the gate and have free rein from there, to explore, congregate or just wander. The group has talked about hosting virtual tours for first-timers but no decisions on that yet. The universe’s press release states it “magically embraces the spirit, culture, and principles of the real-world event in an interactive VR-first expression that cultivates conversation, connection, and community.”

The other five universes are: Multiverse, a virtual-reality experience with a photorealistic Black Rock City filled with 2020 Honoraria art installments, sound stages and hundreds of theme camps; the Bridge Experience, an XR universe that brings together three worlds – a water world, a green world, and a desert world; BURN2, a community built on the “Second Life” computer game; Build-A-Burn, an interactive online art project that only requires a web browser and a webcam; and MysticVerse, a virtual building experience from Cyberius Rex and Simeone Scaramozzino of Camp Mystic.

Amid a worsening pandemic, Demos believes we need connection and catharsis more than ever.

“The need to burn is very high this year,” she says. “It feels like this is the rapture. This burn allows us to remember and reflect.” The universe also offers tool kits for users to build their own worlds and even their own Man to burn at home, safely.

The BRCvr is a free experience and Cook has said that Burning Man has refunded $20 million in ticket sales that they could not provide the typical experience for.

“This has been a labor of love. We all have expenses. Please go to our website and contribute what you can. We also have a donate button for the organization, 100 percent goes to Burning Man,” says Demos and the promise of a Burning Man 2021.

Cook is confident about the impending virtual odyssey, despite financial uncertainty.

“Whether or not people have a desert experience, I think it’s possible to have an experience of generosity and surprise and delight, so the spirit of Burning Man I hope will convey itself through this extravaganza,” she says.

© Copyright 2020 CBS Broadcasting Inc. and Bay City News. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed




August 31, 2020 at 06:30AM
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Burning Man 2020 Goes All-In On Virtual Reality With 'Multiverse' - CBS San Francisco

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How a $13 device is helping Delhi fight the coronavirus - Al Jazeera English

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Twice a day, New Delhi health worker Kamal Kumari receives a flurry of WhatsApp messages from coronavirus patients, containing either a two-digit reading from a tiny medical device or a photo of its glowing display.

She scans the numbers from the 1,000-rupee ($13) oxygen monitor, known as a pulse oximeter, checking to ensure they are all above the prescribed 95 mark and then notes them down in her logbook.

"When we didn't have this, we wouldn't know about their oxygen levels," said Kumari, explaining how her team would worry about patients' conditions rapidly worsening when India's capital was badly short of hospital beds. "Now we can find out in time and safely refer patients to the hospital."

The government of Delhi - where national capital New Delhi is located - has so far distributed pulse oximeters to more than 32,000 people free of charge, putting them at the heart of a plan to isolate most asymptomatic or mildly symptomatic coronavirus patients in their homes.

If we hadn't done this, there would've been no room to even stand in our hospitals.

Satyendar Jain, Delhi\'s health minister

The programme was devised in May, when coronavirus cases started surging in the densely populated city of 20 million, sending panicked residents rushing to hospitals.

"If we hadn't done this, there would've been no room to even stand in our hospitals," Delhi's health minister, Satyendar Jain, told Reuters.

With more than 3.5 million infections, India has reported the world's third-highest number of coronavirus cases, and states across the country have deployed a variety of measures to fight the pandemic.

In Delhi, health authorities started noticing "happy hypoxemia" - low blood oxygen levels without any breathlessness - that was leading to complications in coronavirus patients isolated at home, Jain said.

For regular monitoring, doctors told Jain that patients would either have to visit hospitals or use the inexpensive oxygen monitors, many of which are made in China.

Delhi has recorded around 173,000 infections with just over 4,400 deaths. Only 14,700 cases remain active and many hospital beds are now empty.

Proactive monitoring

Other cities across the world have also deployed the device.

In May, at the height of its outbreak, Singapore distributed several thousand oximeters to migrant workers isolated in cramped dormitories, which had become an epicentre for the virus's spread.

Singapore's health ministry said oximeters allowed workers "to proactively monitor their own health status and reach out for medical assistance if needed".

In India, too, other states have picked up on Delhi's model. Since late July, the northeastern state of Assam has provided nearly 4,000 oximeters to patients in home isolation.

Some doctors are concerned that patients may not always know how to use the device.

"It's very important to train patients properly on how to use pulse oximeters," said Dr Hemant Kalra, a pulmonologist in New Delhi, adding that cheap, sub-standard oximeters flooding the market were also a problem.

Jain, however, said the government's programme had worked effectively, with not a single fatality among the thousands of patients in home isolation over the last month and a half.

Oximeters have also helped cut down on expensive hospitalisation for mild cases, Jain said, saving more than 10 times the device's price for each day in hospital.

On a warm, humid day last week, Kumari pulled on a protective suit, a mask and goggles, before walking down the narrow lanes of the Chirag Delhi neighbourhood.

Together with a similarly dressed colleague, she stopped at Satish Kumar Soni's home to check on him and three family members who were ending their 10-day isolation period, and to collect two government-issued pulse oximeters.

Soni, a 59-year-old jeweller, said the device helped ease the family's fears and anxiety as they slowly recovered.

"It's not that big a disease," he said. "If the oxygen level is fine, then there isn't much danger."




August 31, 2020 at 06:27PM
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How a $13 device is helping Delhi fight the coronavirus - Al Jazeera English

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Fairphone 3+ review: ethical smartphone gets camera upgrades - The Guardian

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The ethical smartphone maker Fairphone has released two camera upgrades for its Fairphone 3 that are available separately or as a whole new device: the Fairphone 3+.

The Fairphone 3+ costs £425 and marks a new approach for the eponymous Dutch company.

The new phone is identical to 2019’s Fairphone 3 apart from an upgraded front and rear cameras, improved audio and an increase in the amount of recycled plastic it contains – up from 9% to 40%, said to be the equivalent of one 330ml plastic bottle. It also ships with the newer Android 10, which will be available for existing devices in the first half of September.

That means you’re buying a smartphone with a dated design that’s chunky with a fairly small screen. But those compromises are necessary to make the phone user repairable, not just repairable by a service centre. The plastic back comes off easily. The battery is removable and the phone is made with six removable modules: when one is broken or you want to upgrade it all you do is unscrew it and insert a new one. There’s even the correct screwdriver included in the box.

fairphone 3+ review
The new selfie camera has a white ring around it. Photograph: Samuel Gibbs/The Guardian

The 5.65in FHD+ LCD screen won’t win any awards for colour or brightness, struggling a bit outdoors, but it is perfectly fine for day-to-day usage and is covered by scratch-resistant Gorilla Glass 5. The fingerprint scanner on the back works great, but is a bit high up making it difficult to reach without a bit of hand gymnastics. There’s a USB-C socket in the bottom for charging and a headphone socket in the top.

Audio is certainly louder and crisper than the original. The speaker is still in an awkward position, though, there’s no real bass, and it can sound a bit shrill and distorts at high volumes.

Specifications

  • Screen: 5.65in FHD+ LCD (427ppi)

  • Processor: Qualcomm Snapdragon 632

  • RAM: 4GB of RAM

  • Storage: 64GB + microSD card

  • Operating system: Fairphone OS based on Android 10

  • Camera: 48MP rear, 16MP selfie camera

  • Connectivity: dual sim, LTE, wifi, NFC, Bluetooth 5 and GPS

  • Dimensions: 158 x 71.8 x 9.9mm

  • Weight: 189g

Android 10

fairphone 3+ review
Android 10 brings full-screen gesture support, which is good but Fairphone’s version needs some improvement. Photograph: Samuel Gibbs/The Guardian

The Fairphone 3+ still has the rather low-performance Snapdragon 632 chip from 2018, 4GB of RAM and 64GB of storage. It performs the same as its predecessor, which means it is fairly slow, but not frustratingly so. For more on performance and battery life please see the original Fairphone 3 review.

New is Android 10, which helps performance a little and makes the phone feel more modern. Although it is worth noting that Android 11 is due to be released imminently by Google, potentially before the Fairphone 3+ ships to buyers. Fairphone aims to provide five years of software updates.

Android 10 on the Fairphone is a standard stripped-back affair, free of bloat or duplicated apps and is all the better for it. You get all the standard Google apps, including the Play Store. It ships with the older Android navigation buttons (back, home and recently used apps) but you can activate the new and improved gesture navigation that is a core part of Android 10.

The software runs fine for the most part, but I have noticed a few small things that need fixing, such as the bottom search bar getting stuck overlapping the icons in the dock when you have gesture navigation active. Anyone who has used an Android smartphone in the last five years should find it immediately familiar.

Sustainability

The most ethical smartphone scores very high marks for sustainability. The phone is made out of 40% recycled plastic, fairtrade gold and conflict-free minerals, is repairable at home, not just by a service centre and users can replace the batteries (£27) themselves in about a minute. A replacement screen costs £81.95.

Fairphone also recycles old phones of other brands, even if you’re not buying a phone from the company. It has various progressive initiatives, from paying workers a living wage to fairer and more environmentally friendly material sourcing.

Camera

fairphone 3+ review
The camera app is much improved with AI scene recognition, faster autofocus, object tracking and image stabilisation, but its tap to focus and shoot is annoying. Photograph: Samuel Gibbs/The Guardian

The new cameras are a step up from the old ones on the Fairphone 3. The rear 48-megapixel camera (up from 12MP) is capable of capturing good images in good to medium light levels, with more detail, better colours and better light sensitivity than the previous version. Shots on a dull grey British day were perfectly acceptable, but low light performance is still fairly weak with no special night mode available.

Autofocus was much faster too, while the camera now supports modern features such as object tracking and scene optimisation. There’s no optical zoom, but the up to 8x digital zoom is surprisingly effective. Portrait mode wasn’t bad either. The camera shoots 12MP photos by default (combineing pixels for more light and better detail), but despite having a 48MP sensor there is no way to shoot at the full resolution.

Video captured at up to 4K at 30 frames a second was solid, but oddly there’s no option for the common FHD video at 60fps, only 30 or 120fps. Slow-mo video was decent, although not at a particularly high frame rate so the effect was not as dramatic as competitors.

It is also worth noting that in normal “Photo” mode tapping to focus also captures the shot, which I found irritating, having to switch to “Pro” to be able to focus and then shoot manually as I would on other smartphones. Pro mode does support capture in RAW format, which some more keen photographers will welcome.

While the new cameras are definitely an improvement over the originals, their performance doesn’t come anywhere near what you’d get from a £349 Pixel 4a or £419 iPhone SE.

The selfie camera is capable of capturing some of the most detailed self-portraits I’ve seen, which I love but some might find deeply unflattering. I had some issues making sure the entire frame was in focus, though, occasionally ending up with my nose out of focus.

Observations

fairphone 3+ review
The new rear camera has a white ring around it to mark it out as the new module. Photograph: Samuel Gibbs/The Guardian
  • The inside of the phone just says FP3, as does the software, meaning it is difficult to tell if you have a Fairphone 3+.

  • The battery was a much tighter fit. I almost broke my nail prising it out of the back.

  • The phone misidentified an EE sim as being on the Virgin mobile network.

Price

The Fairphone 3+ is available for pre-order costing £425, shipping on 14 September.

The Camera+ Module (48MP) will cost £54.95 and the Top+ Module (16MP) will cost £32.95 separately, or £62.90 as a bundle, plus shipping until the end of September for existing Fairphone 3 users to upgrade themselves.

For comparison, the Google Pixel 4a costs £349, the OnePlus Nord costs £379 and the Apple iPhone SE costs £419.

Verdict

The Fairphone 3+ has a better camera on the front and back, meaning one compromise is lessened compared with the competition. But the rest of the downsides of the original Fairphone 3 remain, alongside that one big, overriding upside: being as ethical as possible.

It is good to see the company delivering on its promise of upgrade modules, which existing Fairphone 3 users can buy and slot in. Whether they will remains to be seen. It’s not quite a night-and-day upgrade, but if you hate the original camera it might be worth it.

It’s also good to see progress on the use of recycled plastic, something other manufacturers including Google, Samsung and Apple are taking up, too.

I want to be clear: this is a 3.5-star device with 1.5-stars awarded for sustainability, repairability and ethical manufacturing. You’ll get a far better smartphone experience from a Pixel 4a or an iPhone SE for similar money. But ultimately you buy the Fairphone 3+ because you support the ideals, rather than looking for a value-for-money smartphone.

The most ethical smartphone you can buy now has a better camera, and you don’t have to bin your original Fairphone 3 to get it.

Pros: ethical manufacturing, sustainable materials, truly repairable, solidly built, dual sim, microSD card slot, headphones socket, removable battery, bloat-free, software support for five years, reasonable camera.

Cons: middling performance, chunky, expensive for the specs, camera still not as good as rivals, no 5G.

fairphone 3+ review
The screen struggles for maximum brightness outdoors and is a dust magnet. Photograph: Samuel Gibbs/The Guardian

Other reviews




August 31, 2020 at 01:00PM
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3 Top Artificial Intelligence Stocks to Buy in September - Motley Fool

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Many people have probably heard of artificial intelligence but may be unsure exactly what AI entails.

AI occurs in two phases; the learning or training phase, in which case an algorithm is "taught" how to react to incoming information from troves of past data. The second phase is the "inference" phase, in which case a machine reacts to a prompt based on its learning without human interaction. Along the way, there's quite a lot of software, processors, and memory that make all of this work, and there are a lot of companies directly or tangentially involved.

One thing's for sure: The AI revolution is taking off and is bound to make many companies rich in the 2020s. Today, three of the best-positioned AI stocks are CrowdStrike (NASDAQ:CRWD), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Lam Research (NASDAQ:LRCX). Here's why each is a solid buy in September.  

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Image source: Getty Images.

Using AI to disrupt the cybersecurity market

CrowdStrike (NASDAQ:CRWD) has more than tripled since its IPO just over one year ago, but that shouldn't deter you from still taking a look at this endpoint cybersecurity company today. Although the company looks quite expensive at a $25 billion market cap and a price-to-sales ratio of 45, CrowdStrike's 85% growth rate and significant gross margin expansion backs up the optimism.

Why is this upstart cybersecurity company on such a tear? Chalk it up to its disruptive business model that was born in the cloud and uses AI to create a "network effect" that continually improves the product based on threat data from all of its customers. CrowdStrike's Falcon platform consists of its easily deployable lightweight agent that can attach to any enterprise endpoint, from servers, to laptops, to mobile devices, to Internet-of-Things devices. Every endpoint sends data back to CrowdStrike's centralized Threat Graph, which amalgamates all of that data to continually improve the company's defense algorithms.

CrowdStrike's impressive management is nothing if not confident. In the company's annual report, it writes, "by analyzing and correlating information across our massive, crowdsourced dataset, we are able to deploy our AI algorithms at cloud-scale and build a more intelligent, effective solution to detect threats and stop breaches that on-premise or single instance cloud products cannot match."

There appears to be something there; in 2019, CrowdStrike catapulted from ninth place in the endpoint security market to fourth place, while the three companies above CrowdStrike all lost market share. What's more, even after last year's big share gains, CrowdStrike had only 5.8% of the overall endpoint security market.

I'd look for CrowdStrike to continue gobbling up more endpoint market share over the years while also entering new segments of cybersecurity in the years ahead. The company reports earnings on Wednesday, Sept. 2, so interested investors may wish to buy a portion of stock now, then see what management has to say after the release and conference call.

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Alphabet is an AI conglomerate

Guess which large company was an early investor in CrowdStrike. That would be Alphabet, which invested in the cybersecurity firm in 2015 through its Google Capital, or "CapitalG" later-stage growth investing entity.

But it's not just through its two investing businesses, CapitalG and Google Ventures, in which Google is exposed to AI. No, AI is at the heart of most core Alphabet products, even its main search engine, where AI-driven algorithms improved the core search function over human-developed algorithms in recent years. YouTube video recommendations also depend on AI, and the rising star in the portfolio, Google Cloud Platform, offers a full suite of AI tools, from image recognition, to voice and language AI, to machine learning and other out-of-the-box algorithms that clients can use. The same goes for Google's hardware products, including its Google Home pod and Pixel smartphones.

Alphabet has continued to heavily invest in AI, establishing Google.ai in 2017 to work on cutting-edge AI research. Alphabet has even begun making its own customized AI processors called Tensor processing units, which were first developed in 2016. And Alphabet is also making great strikes in futuristic AI-related fields such as quantum computing and self-driving cars with its Waymo subsidiary.

Despite its formidable search business and new high-growth segments like YouTube and Google Cloud, Alphabet has lagged the other FAANG stocks this year, even though it's up 23% for 2020.

GOOG Year to Date Total Returns (Daily) Chart

GOOG Year to Date Total Returns (Daily) data by YCharts

I think investors are focusing too much on the quarter-to-quarter growth numbers in the core search business, which has been temporarily affected by the COVID-19 pandemic and lack of travel-related advertising. Yet given Alphabet's vast cash resources and hefty investments into leading AI research, investors should appreciate the long-term forest, not the short-term trees, making Alphabet a great buy at today's prices.

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This semi equipment maker just upped its dividend

One thing is for sure: AI will continue to require advanced processors, graphics chips, memory, and storage. And while many chip companies are chasing that gold rush, the manufacturing of advanced processors and memory only comes by way of a few "picks and shovels" semiconductor equipment companies. Of them, Lam Research is currently reporting some of the strongest profitability metrics. In fact, following its stellar June quarter, Lam Research just announced it was increasing its quarterly dividend by 13%, from $1.15 to $1.30, or $5.20 on an annual basis, good for a yield of 1.5%.

Helping matters is that Lam Research garners an outsize portion of revenues from value-add services relative to peers, at around one-third of its revenue base. Not only do Lam Research's machines make chips for AI applications, the company also uses AI to collect and process vast amounts of data from its large and growing installed base of machines. From that data, Lam has introduced value-add productivity services over the years that help customers reduce defects increase yields, creating a win-win for both Lam and its customers.

Not only should Lam's installed base increase every year as more and more advanced chips are produced, but Lam has been able to increase its "revenue per chamber" by continuing to develop these extra value-add services.

With high profit margins, returns on capital, a steadily growing services segment and a still-reasonable P/E ratio of 23, Lam still looks like one of the best risk-rewards in the tech sector today.




August 31, 2020 at 06:12PM
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