Why smartphones still haven't taken over the U.S. market

Editor's note: Amy Gahran writes about mobile tech for CNN.com. She is a San Francisco Bay Area writer and media consultant whose blog, Contentious.com, explores how people communicate in the online age. (CNN) -- Smartphones may attract nearly all of the marketing hype and news coverage, but comScore's latest statistics show that smartphones still comprise only a minority of the U.S. mobile market -- about 35%, as of July 2011. The other 65% of U.S. mobile handsets in use are "feature phones" -- which tend to be much less expensive to buy and own. Often, these phones do not require a pricey two-year wireless service contract with hefty early termination fees. Even though smartphones cost much more, these devices have been getting popular with U.S. consumers, even in light of the country's economic recession. After all, a 35% market share is nothing to sneeze at -- especially considering that smartphones have only been widely available in the U.S. for about five years. At some point, a majority of U.S. mobile users will indeed own smartphones. But that shift won't happen as quickly as early forecasts anticipated. Back in March 2010, the Nielsen Company proclaimed that smartphones would overtake feature phones by 2011. Specifically, they predicted that by the end of Q3 2011 (about a month from now), most U.S. mobile users would own smartphones. That ambitious prediction doesn't seem to be panning out. For over a year, comScore has been publishing monthly mobile-market-share statistics that show the percentage of U.S. smartphones. I've been tracking these figures. Based on this data, it looks like it'll be roughly October 2012 before smartphones actually take over as a majority of U.S. handsets. That's about a year later than Nielsen's forecast. Even then, there will still be plenty of feature phones in the U.S. market for quite a while. They're definitely not vanishing any time soon. What might speed up or slow down the proliferation of smartphones in the U.S.? It's mostly a cost-benefit tradeoff. Decisions about which mobile phone to purchase are driven by functionality (what people want to do with their phones), access (the quality, speed, and geographic availability of local wireless networks), cost (both up-front and monthly bills), and flexibility (the ability to switch carriers, plans, or to cancel at will). Right now smartphones win in terms of functionality because people can use apps to do almost anything a much bulkier computer would let them do. Still, many consumers prefer simpler phones, and view the mobile app frenzy as a confusing and unnecessary excess. This market segment (and it's not just determined by age, education, or income) will probably keep using feature phones the longest. Access divides on urban and rural lines. Once you get outside of major metro areas, wireless coverage gets spottier. Also, carriers are very slow to roll out faster "4G" networks in less-populated rural areas. Using a smartphone on a slow or spotty data network can be pretty painful, and might not seem worth the extra cost. In terms of overall cost and flexibility, feature phones are the clear winners -- which is probably why they remain so popular. It's easy to get a pretty good, no-contract feature phone for $50 or less (or even for free), and then get a month-to-month or pre-paid plan that allows Web browsing, e-mail, and other data access. That costs around $50 per month. Generally users can cancel these phones at any time, with no early termination fee. In contrast, smartphones typically cost $100 or more (sometimes much more) at a subsidized price on a two-year contract from a wireless service provider. Monthly bills typically start at $80-90, and if you want to cancel early you'll still owe the carrier up to a few hundred dollars for an early termination fee. If the overall U.S. economy improves significantly -- and especially if lots more full-time jobs get created soon -- it's likely that smartphones would take over sooner. But if the recovery continues at its current pace or slows, feature phones could remain the majority into 2013 or beyond. It's also possible that manufacturing advances could bring the cost of smartphones down. Or the major U.S. carriers might decide to offer more smartphones on more flexible and consumer-friendly terms. Personally, I'm not holding my breath for either of these outcomes. The good news is that, for people who stick with feature phones, those devices aren't as limited as they used to be. One of the biggest areas of improvement in the U.S. feature phone market is the Web browser. Most feature phones come with some kind of Web browser, and users can opt to pay a little extra for a data plan that allows them to access the mobile Internet. It used to be the case that feature phones came packaged with horrible, frustrating and slow browsers that displayed most Web pages poorly or not at all. But now it's fairly easy for most U.S. consumers to find feature phones that include a much better pre-installed Web browser such as Opera Mini or Bolt. These display most Web pages pretty well and are easy to use, offering a vastly superior mobile browsing experience. According to Per Wetterdal, Opera's U.S. regional manager, American consumers can currently purchase Opera Mini-equipped feature phones that don't require a two-year contract from AT&T and Virgin Mobile (a brand from Sprint) -- and by this holiday season also from Verizon. (The stock AT&T mobile browser is actually a branded version of Opera Mini.) Discount carriers such as MetroPCS and third-party retailers such as Wal-Mart generally don't yet offer feature phones pre-installed with better proxy browsers. But any feature phone owners usually can download a better browser for free. The possible drawback is that once installed, it may take some extra clicks to launch. Opera Mini and Bolt offer additional benefits that may appeal to smartphone owners, too. These browsers, and others like them, are "proxy browsers" which compress data significantly before transmitting it to the phone. This means they load Web pages faster, and they help control mobile data consumption. So if you're on a tiered data plan, even if you own a smartphone it might be a good idea to install a proxy browser. Using it can help you avoid hitting your data cap, getting charged for overages, or even getting throttled. This will probably work well enough for most of your Web browsing, and you can switch to a fully-featured non-proxy browser for sites that warrant it. Some proxy browsers are specifically designed for smartphones. Opera Mini offers versions for all smartphone platforms, Bolt has BlackBerry versions, and Skyfire offers Android and iOS versions that also play Flash video (something still not fully supported by Apple's Mobile Safari browser). But if you want to stick with a feature phone for a while, don't worry too. You'll probably still get a good-enough mobile online experience if your phone has a decent mobile browser.

When social media 'hinders' revolution

(CNN) -- This has been the year of social media crackdowns. First there was Egypt, where the government shut down the Internet in January amid protests that toppled the 30-year rule of president Hosni Mubarak. Then it was Libya, where something similar happened. And, most recently, UK Prime Minister David Cameron said he was considering shutting down digital-communication channels during riots that had gripped the country. As CNN's Mark Milian reports, the UK has since backed down from that claim, but the discussion caused much controversy online. Behind all of these happenings is a theory: That new-ish communications technologies -- from Facebook and Twitter to BlackBerry Messenger -- help people mobilize and revolt against governments. Tech insiders tend to see the Internet and social media as democratizing forces -- digital tools that can be used to topple dictators and spark change. Perhaps Wael Ghonim, the Google employee who helped organize Egypt's revolution 2.0 over Facebook, put words to this theory best: "If you want to liberate a society, just give them the Internet." But what if that's not true? That's essentially the argument of Navid Hassanpour, a political science graduate student at Yale, who writes in a recent and widely-talked-about paper that social media actually hurts a particular group's chance of organizing a meaningful and successful revolution. "Social media can act against grass roots mobilization," he writes. "They discourage face-to-face communication and mass presence in the streets. Similar to more traditional and highly visible media, they create greater awareness of risks involved in protests, which in turn can discourage people from taking part in demonstrations." He uses mathematical models to map out why this was the case in Egypt. To put this in a pop-culture context, think about Facebook photos of your friends. To some degree, seeing what they're up to all the time could stop you from actually meeting up with them in person to communicate. And that face-to-face interaction is key to political mobilization, Hassanpour says. Here's how the New York Times explains it: "All the Twitter posting, texting and Facebook wall-posting is great for organizing and spreading a message of protest, but it can also spread a message of caution, delay, confusion or, I don't have time for all this politics, did you see what Lady Gaga is wearing?" In the absence of all this digital buzz, he says, people organize. "We become more normal when we actually know what is going on -- we are more unpredictable when we don't -- on a mass scale that has interesting implications," Hassanpour told the Times in an interview. Hassanpour isn't the first to argue against the conventional wisdom that social media helps spark revolution. Evgeny Morozov, a visiting scholar at Stanford University and author of the recent book "The Net Delusion: The Dark Side of Internet Freedom," says dictators use digital communications to track and crack down on dissenters. "People who are concerned about freedom and democracy and creating democratic values abroad -- those of us in the West who are concerned about that -- we are probably far better off assuming the worst," he told CNN in February. "We are far better off assuming the Internet will strengthen dictators."

DOJ files antitrust suit to block AT&T merger with T-Mobile

                                        

NEW YORK (CNNMoney) -- The U.S. Department of Justice filed an antitrust lawsuit against AT&T on Wednesday seeking to block its $39 billion merger with T-Mobile. The merger would create the largest wireless company in the United States, combining AT&T's 98 million customers with T-Mobile's 34 million users, for a total of 130 million subscribers. AT&T is currently the second-largest wireless company by number of subscribers, and T-Mobile is fourth.  The DOJ said the merger would lead to a situation in which just two companies -- the AT&T-T-Mobile combination and Verizon Wireless -- would dominate the mobile market. The new AT&T and Verizon would account for more than two-thirds of wireless subscribers and 78% of the wireless industry's revenues.

 "We feel the combination of AT&T and T-Mobile would result in tens of millions of consumers across the U.S. facing higher prices, fewer choices, and lower quality products for wireless services," James Cole, deputy attorney general, said in a press conference Wednesday.

AT&T must lawyer up in T-Mobile deal

The Federal Communications Commission, which oversees the wireless industry, is in the midst of its own review of the proposed merger. Following the DOJ's announcement, FCC Chairman Julius Genachowski said that the agency also believes the merger raises "serious concerns about the impact ... on competition." Shares of AT&T (T, Fortune 500) tumbled more than 4%. Wayne Watts, AT&T's general counsel, said in a statement that the company was "surprised and disappointed by today's action." He went on to say that the company remained "confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court." AT&T has claimed that the merger is necessary in order to significantly expand its faster 4G wireless network to compete with Verizon (VZ, Fortune 500). Without the acquisition, AT&T says it would lack the necessary wireless spectrum and wherewithal to cover 97% of the U.S. population with 4G. But the Justice Department said it didn't buy AT&T's argument. Following what the regulator called "an exhaustive investigation," the DOJ said it concluded that AT&T did not need to buy T-Mobile to remain competitive, and that the company could deploy next-generation technology by simply investing in its own network. "AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction's substantial adverse impact on competition and consumers," the DOJ said in a statement. Back-to-school smartphone shopping tips Sprint (S, Fortune 500) and many of the smaller carriers have argued that the merger will harm competition and raise prices for consumers, because it would eliminate T-Mobile, the last low-cost carrier with a national footprint. "By filing suit to block AT&T's proposed takeover of T-Mobile, the DOJ has put consumers' interests first," Vonya McCann, Sprint's senior vice president of government affairs, said in a written statement. The DOJ said it concurred with the smaller carriers' opinions, noting that the agency filed the lawsuit to protect price competition. The regulator labeled T-Mobile as an important source of competition in the wireless market. "Any way you look at this merger, it is anticompetitive," said Sharis Pozen, acting head of the DOJ's antitrust division. "It raised serious concerns, and we believe it violates the law." The lawsuit does not necessarily mean the deal won't get done. In April, the DOJ filed an antitrust lawsuit against Google (GOOG, Fortune 500), following its $700 million takeover bid for ITA, the world's largest airline search software company. The DOJ and the search giant then quickly settled the claim, with the Justice Department approving the deal, provided that Google accept certain concessions and restrictions.

Facebook to launch music platform with Spotify, MOG and Rdio

                                                

(Mashable) -- Facebook intends to launch its long-rumored music service next month with Spotify, MOG and Rdio as three of the company's launch partners, Mashable has learned. The music and media platform will be announced at Facebook's f8 developer conference on September 22. It will allow users to listen to music from within Facebook.com. Evidence of Facebook's music platform first surfaced in the code of Facebook's video chat service. According to two sources familiar with the matter, Facebook will not directly host or stream any music or media. Instead, it will rely on partners to provide the content. This is in contrast to Apple, Google and Amazon's strategy of hosting music content on their servers. Facebook's plan is to become a platform for media content in the same way it is a platform for applications and games. One of our sources specifically mentioned three music services as launch partners: Spotify, Rdio and MOG. It's unclear whether Facebook has lined up other launch partners for its music platform or whether Facebook will open up its platform to other developers. One of our sources noted, however, that Facebook doesn't like playing favorites, so our bet is that Facebook will open up its music platform to other third-party developers. We've also heard whispers that Facebook intends for this platform to go beyond music -- for example, it's possible that Netflix could stream movies through Facebook. However, we don't know if Facebook will go beyond the music platform announcement at f8. Update: "There's nothing new to announce," a Facebook spokesperson told us. "Many of the most popular music services around the world are integrated with Facebook and we're constantly talking to our partners about ways to improve these integrations." See the original article on Mashable.com

Tech's next industry trend: Grilled cheese?

San Francisco (CNN) -- While much of the technology industry scrambles to embrace tablets as the next big thing, veteran Jonathan Kaplan is applying his tech savvy to a completely different market: grilled-cheese sandwiches. Even stranger than that? He's not alone. On Tuesday, the inventor of the Flip video camera opened the Melt, the first of a proposed chain of grilled-cheese restaurants, in the hip San Francisco neighborhood called SoMa, or South of Market. Kaplan managed to talk Sequoia Capital, the venture-capital firm that funds tech startups, into backing his grilled-cheese venture. He plans to open a handful of Melts across the city in the coming months and 500 restaurants nationwide in the next five years. And he's now going up against Heidi Gibson, a former Oracle manager, and Nathan Pollak, a former consultant for tech firms, including Oracle. The pair runs the American Grilled Cheese Kitchen, a year-old gourmet sandwich shop also in SoMa that has attracted Lady Gaga and other celebrities. Pollak's take on Kaplan's heavily financed upstart sounds similar to one you might hear from a scrappy Web startup that's about to have its niche product emulated by Google or Facebook. "I'm not looking at it so much as competition but more as 'coopetition,' " Pollak said last week. "The fact that grilled cheese is now a legitimate food business and someone is taking a gamble on 500 locations. ... All of a sudden, there's a grilled-cheese industry, and this is great."

                                            

While Pollak looks at his new restaurateur life as an escape from tech, Kaplan is shoehorning his industry knowledge into the Melt. Kaplan had hardware manufacturers develop a special grill that can toast bread and cheese efficiently and reliably, with minimal effort from the staff. Kaplan tested the software -- yes, this grill runs apps -- over six months, tasting thousands of sandwiches until the process was tweaked to his liking, he said. The Melt also deploys a mobile-ordering system that lets customers buy a sandwich on their phone and then scan a QR, or Quick Response code (those pixelated black-and-white squares) on the phone's screen when they arrive. The QR code triggers the grilling process; Kaplan hopes to deliver hot grilled-cheese sandwiches, which cost $5.95, within two minutes. Other restaurants might be interested in licensing this technology, but the company has no plans to do so, said Michael Moritz, a Sequoia partner. In addition to the prestige that comes with having Sequoia as an investor, the Melt has a powerhouse board of directors. Celebrity chef Michael Mina gives Kaplan advice on which soups to pair with which types of cheeses. Ron Johnson, the wizard of retail who directed the rise of the Apple Store and recently became CEO of J.C. Penney, is also on the board and provided capital. Moritz and Johnson are betting on Kaplan because he has a history of successes. In addition to Pure Digital Technologies, the Flip camera maker that was bought by Cisco Systems in 2009 and shuttered two years later, Kaplan sold FamilyWonder, an entertainment-media company, to Sega.

"Jonathan is someone we've had a decade-long relationship with," Moritz said. "He's a man who can clearly express what he thinks it is that will delight a consumer, whether it's a video camera or a grilled-cheese sandwich."

Before the first location's opening, Kaplan expounded on the parallels between his past consumer-electronics ventures and sandwich shops while potential customers peeked through the windows and tugged on the door

handles.a company, to Sega. "I like consumers," Kaplan said. "This is totally 'consumer.' Look, there's a consumer coming through the door right now. I can't wait to talk to this guy." The Melt is, by design, a business on a high trajectory, thanks to its factory-line infrastructure and fast-ordering tools. Kaplan's one regret is selling Flip to Cisco rather than taking it public, he said. This time, he's dedicated to a full-course meal. "I know as much about the restaurant business as I knew about video cameras five years ago," Kaplan said. "Grilled cheese makes people happy. Food is fundamental to our daily lives."

Sony rolls out 'personal 3-D' goggle set

(CNN) -- A shiny headset that lets you watch 3-D video, play video games or listen to music -- not to mention looking at home on an extra from your favorite sci-fi film -- is on the way. Sony on Wednesday announced the HMZ-T1, a head-mounted "personal 3-D viewer," will be rolled out later this year. The headset includes a pair of goggles housing a 0.7-inch, high-definition OLED panel that Sony says is the equivalent of a 62-foot virtual screen. It includes virtual surround-sound and can be used for watching movies or other videos, listening to music and playing video games (we're assuming they'd prefer you to do so on the PlayStation, although they say the headset is hardware-neutral). "This new 3-D viewing style provided by 'HMZ-T1' will enable users to enjoy the movie theater-like experience whilst relaxing on their living room sofa, thus further expanding Sony's 3-D world," the company wrote Wednesdayin a news release. The headset will be released in Japan (where else?) on November 11 for the equivalent of about $780, according to Sony. No release dates for other countries were given. Sony had rolled out a prototype version of the headset at January's Consumer Electronics Show in Las Vegas, but it was far from fully formed and no timeline for its release was announced then. If it all seems a little Geordie La Forge from "Star Trek: Next Generation" to you, well, you're not alone. "Geordi La Forge may not be scheduled to don his replacement eyesight for another 329 years, but Sony's the latest company to take a stab at the basic idea," Sean Hollister wrote Wednesday for tech site This is My Next. Hollister got to test-drive the headset and, while generally positive, said it's a bit front-heavy and not entirely comfortable. But he called its visuals "nothing short of stunning." "[T]hose twin 0.7-inch OLED displays shot out deliciously crisp images with deep blacks and beautiful vibrant colors," he wrote. Gizmodo's Mat Honan also gave the experience high marks. "This was one of the more immersive entertainment experiences I've yet had," he wrote. "When I tried playing 'Gran Turismo', I found myself pivoting my head to look left and right although that has no effect on the display (of course). It was just a natural reaction. "I felt like I was in the driver's seat of a car, and was scanning the road as I normally would. When we popped in a 3-D movie, I actually ducked a bit as a shark swam overhead."

AT&T and T-Mobile: Is the deal dead? No one knows.

 

NEW YORK (CNNMoney) -- The U.S. Department of Justice wants to roadblock AT&T's merger with T-Mobile. But does that mean the deal is off? Welcome to uncharted territory. The kind of lawsuit that the Justice Department filed against AT&T is an extreme rarity. The DOJ has probed 4.4% of all merger filings since 1990, according to Maurice Stucke, a law professor at the University of Tennessee and former U.S. Attorney for the DOJ's antitrust division. Most times, the agency investigates and then steps aside. The DOJ filed lawsuits against just 0.3% of mergers in the past 20 years -- and the vast majority of those were then settled outside of court. "The fact alone that the DOJ wants to go through legal proceedings increases the uncertainty of the completion of the merger," said Michael Hausfeld, founder of Hausfeld LLP and lead U.S. prosecutor in several antitrust cases against Intel. The DOJ filed its lawsuit before AT&T (T, Fortune 500) even had time to submit a response to the agency's latest request for information on the proposed deal. That means a settlement isn't likely -- which is how several of the DOJ's recent merger challenges ended. The agency only approved Google's (GOOG, Fortune 500) acquisition of ITA and Comcast's (CMCSA, Fortune 500) purchase of NBCUniversal after the companies agreed to a set of provisions and restrictions. "It probably means that there was nothing more that AT&T could have produced to persuade the DOJ that this deal wasn't anti-competitive," said Melissa Maxman, co-chair of the antitrust practice group at Cozen O'Connor. "It suggests that discussions had broken down, and there was no divestiture or behavioral remedy possible that would have ameliorated the potential wrong that the DOJ saw." But before we start writing requiems for the deal, it's important to note that companies have coin-flip odds of successfully challenging the Justice Department in court. The DOJ has won just under 50% of its court cases, according to Salil Mehra, an antitrust law professor at Temple University and former U.S. Attorney for the antitrust division of the DOJ. A prominent example is the 2004 lawsuit the agency filed objecting to Oracle's purchase of PeopleSoft. The DOJ maintained that PeopleSoft was one of just two direct competitors to Oracle in the human resource management software business. But Oracle (ORCL, Fortune 500) fought back hard, and seven months later, a judge ruled in Oracle's favor. The DOJ chose not to appeal, and the deal went through. AT&T has 3 billion reasons to fight the lawsuit tooth and nail. If the merger is not approved, the company needs to pay a reverse termination fee of $3 billion to T-Mobile, and it has to forfeit several billion dollars more in wireless spectrum allotments. Legal battles can be pricey. But even if AT&T goes the distance, an antitrust attorney with knowledge of the costs of such battles said AT&T's legal fees probably wouldn't top $10 million. "AT&T has every incentive to litigate the hell out of this," said Danny Sokol, a professor at the University of Florida's Levin College of Law. Still, that's not the only financial consideration. Time isn't on AT&T's side. If AT&T loses its first-round court battle, an appeals process would drag on for months, delaying the deal and reducing its economic benefits. AT&T wants to take advantage of T-Mobile's spectrum in order to quickly deploy its 4G network nationwide. The longer it waits, the more that advantage erodes. Another bit of uncharted territory: The DOJ's lawsuit is the first test of the Obama administration's new merger guidelines. Announced a year ago, the new rules stipulate that a merger will be evaluated not only on how much it shifts market share, but also by its impact on rivals. The proposed T-Mobile deal would increase AT&T's share of the wireless market from 32% to 43%, and reduce the number of nationwide carriers from four to three. Is that a huge change? It's debatable. But T-Mobile is the last remaining national, low-cost carrier. Eliminating T-Mobile from the market would likely have a major impact on wireless prices for all consumers. "The DOJ is saying that people won't be better off in terms of pricing and product innovation if the deal goes through," said Evan Stewart, partner in the antitrust practice at Zuckerman Spaeder. "This isn't wacky legal theory from the DOJ; this is right down the middle of the fairway." Yet other antitrust experts look at the same DOJ filing and see it as saber-rattling. "I think this is a bump in the road. The deal is still going to get done," said David Kaufman, partner in the antitrust practice at Duane Morris LLP. "The Obama administration feels a lot of pressure to show it's tough, but AT&T has too much at stake to let this fall through. They're going to get a deal done." So: Will it go through or not? No one knows. But either way, AT&T is going to have a lot more explaining to do. To top of page

Powering prosthetics with thoughts alone

(CNN) -- It may be disembodied now, but this cutting-edge robotic arm will soon spring into action as U.S. researchers begin a landmark experiment which, if successful, will see it controlled by mind power. Starting next month, researchers at Johns Hopkins University's Applied Physics Laboratory (APL) in Maryland and the University of Pittsburgh will begin testing on spinal cord injury patients whose brains have been implanted with a tiny (2mm by 2mm) electrode array. "When a neuron fires an electrode will pick it up the signal will travel to a transmitter and it will be transmitted to a computer in the arm which then interprets that signal and converts it into a motion," program manager at the APL, Michael McLoughlin explained. "It's a really exciting point in the program. We've been working on getting to this point for the past five years," he added. The Modular Prosthetic Limb (MPL) itself weighs in at around nine pounds -- the same as a natural arm -- and comes close to the dexterity of a natural limb, McLoughlin says, offering 22 degrees of motion, including individual finger movement. We can't do the Vulcan salute! We can't cup the palm. But other than that we can do pretty much everything," he said. The APL was awarded the contract to develop and test the arm on human subjects in 2010 as part of the $100 million Revolutionizing Prosthetics program run by the U.S. Defense Advanced Research Projects Agency (DARPA). Touch sensors in the fingers and the palm will also pick up vibrations, temperature and surface textures, McLoughlin says, although tests on these won't start until next year. The goal is for the system to be wireless with everything contained in the body, much like a pacemaker, he says. "The results of this program will help upper-limb amputees and spinal cord injury patients, as well as those who have lost the ability to use their natural limbs, to have as normal a life as possible despite severe injuries or degenerative neurological disease," McLoughlin said. A commerically available thought-controlled device may be some way off, but companies like Scottish-based Touch Bionics are meeting the demand for highly sophisticated upper-limb prosthetics. Their i-LIMB Pulse is the latest in a range of myoelectric prosthetic devices which "utilize the electrical signal generated by the muscles in the remaining portion of the patient's limb." All five digits on the bionic hand function like a real human hand, says the company. Lower-limb amputees are also feeling the effects of improving technology. Kevin Murray, a prosthetist at the UK's National Center for Prosthetics and Orthotics, says advances in materials and technology have been dramatic since he began his career. "(When I started) the majority of amputees would have been wearing stump socks or occasionally you might see suction sockets above the knee level ... The standard foot was a simple wooden uniaxial foot," Murray said. "The range available now is huge by comparison to what was around 20-25 years ago." Ossur, an Icelandic orthopedics company, which supplies South African athlete Oscar Pistorius with his carbon fiber running blades -- called the Flex Foot Cheetah -- is one of the leading innovators in hi-tech lower-limb devices. Why Oscar Pistorius deserves to run Bionic prostheses such as its "Rheo Knee" use artificial intelligence which adapts to the wearer's gait speed and their walking environment. The more recent "Power Knee" is the world's first motorized, artificially intelligent prosthesis, Ossur says, helping wearers up steep slopes and stairs as well as reducing wear and tear on the remaining good leg. "We've started to raise the bar," said Hilmar Janusson, Ossur's Vice President of Research and Development. "My vision for the future is that we will see the activity level of the people who use our products multiply three to four times."

Apple rejects pollution allegations

 
Beijing, China (CNN) -- Apple has defended itself against allegations its suppliers in China committed environmental violations. In a report, "The Other Side of Apple II," a coalition of Chinese non-governmental environmental organizations detailed alleged pollution caused by Apple's supply chains in China, among those companies handling iPhone and iPad parts. The 46-page report provided maps showing more than 20 suspected and confirmed Apple suppliers, as well as photos and descriptions of the alleged damage caused to local environments and communities. "Apple is committed to ensuring the highest standards of social responsibility throughout our supply chain," Apple said in an e-mail reply Wednesday to the organizations making the allegations. Apple said the companies it does business with "use environmentally responsible manufacturing processes." The NGOs also produced a video and posted on ku6.com, a popular Chinese video-sharing website. The video shows a small river with a yellow hue, allegedly polluted from the discharge of two companies nearby, one of them a suspected Apple supplier. "We hope Apple will face the reality. The more its business grows, the more pollution it will cause," said Ma Jun, director and founder of the Institute of Public and Environmental Affairs, which spearheaded the report. Apple said there are "discrepancies" in the list of suppliers mentioned in the report and suggested a "private conference call" with the NGOs behind the report, a move that the Institute accepted. "This is progress, and we welcome it," said Ma. "We sent a different pollution report to Apple earlier this year, but received no response." Apple is widely popular in China. Earlier this year Apple's new CEO Tim Cook said the company's revenue in greater China reached $8.8 billion as of Q3 this year, a more than six-fold increase in year-to-date revenue.

Oprah to appear live on Facebook

(Mashable) -- Oprah Winfrey is coming to Facebook next week. On September 8, the TV star will be the one answering questions rather than asking them, appearing on a one-hour Facebook Live streaming video interview at 4:30 p.m. ET. To see the live webcast, go to Facebook Live on September 8 and Oprah will answer questions shared by visitors to the Facebook Live event wall. Fans are invited to share their questions now, with the promise that "you might hear Oprah answer your question during the live show." Oprah is no stranger to Facebook. Her official Oprah Winfrey page is liked by more than 6.2 million fans. She's also hip to the iPad-based magazine app Flipboard, where there is an official "Oprah" section. Oprah has a burgeoning Twitter account as well, where she has 7.2 million followers. That number is dwarfed by the throngs of devotees the woman enjoys elsewhere. For instance, soon after she joined Twitter and featured it on her TV show in 2009, Twitter traffic was boosted by an astonishing 24% compared to day before the segment aired.

The quest for an unhackable code

NEW YORK (CNNMoney) -- Every day the news hits of another company, website or long list of credit cards that's been hacked. But what if there was a foolproof technology to fend off cyberattackers by keeping secret information secret? Would an unhackable encryption algorithm do the trick? * 28 * * * Print That's what a father and son team from Calgary, Alberta, say they've created. For the past several years, cryptographic hobbyists Robert and Frederik Kleiner have been working to develop Enigma-DS, an encryption code that they claim cannot be broken. Rather than encrypt a bit of text letter by letter (A becomes Q, B becomes H, etc.), Enigma-DS converts text into code based on language, sentence structure and words. For example, the word "rose" could become "wp76546hj!lldrk," but "rise" might become "aq!@#Qh!21mb." A unique key is generated for every encoded item. Even if someone were able to discover the key to unlock and decrypt one file, others would remain unaffected by the breach, the Kleiners say. They're so sure of their code's security that the Kleiners ran a contest this summer offering $100,000 to anyone who could crack it. No one broke the code during the two months that the little-publicized competition ran. They even challenged the National Security Agency to break it, which declined to comment beyond saying the agency welcomes such submissions. If you're skeptical, so are cryptography and cybersecurity experts. Encryption, they say, is not the weakest link in the security chain. People are. Security professionals already use cryptography that, for all intents and purposes, cannot be cracked. Tools like one-time pads, which generate new code-unlocking keys for each encryption, or encryption methods like the Advanced Encryption Standard (AES) are so complex that they could not be broken by modern supercomputers in our lifetime. But human beings, unfortunately, just aren't that dependable. "The problem isn't encryption, the problem is people using weak passwords or the same passwords on 100 different places," said Chuck Easttom, a cybersecurity trainer at EC-Council's Center of Advanced Security Training. "The past six months have been replete with hacking stories, and not one has been because an encryption was broken." 0:00 / 2:35 Worry about the hackers you don't know For instance, RSA, a division of EMC Corp. (EMC, Fortune 500) and one of the world's preeminent security and encryption companies, was hacked in March, rendering many of its popular SecurID tags less secure. But RSA's encryption wasn't hacked -- attackers simply sent phishing e-mails with the subject line "2011 Recruitment Plan" to RSA employees. One worker opened the Excel file attached to the e-mail, which set loose a program letting the attacker control the employee's PC. From there, the attackers roamed through RSA's systems. The cybersecurity landscape can change in an eyeblink -- as RSA found out. "We're implementing techniques that just a couple of weeks ago I thought were in the realm of long-term roadmaps," Uri Rivner, RSA's head of new technologies for consumer identity protection, wrote in a blog post soon after. A changing landscape Even if we don't need better encryption now, we may need it soon -- perhaps even within the next decade or two. Mathematicians say that the theories of quantum mechanics could eventually be applied to decryption, giving computers the ability to crack in seconds a code that a supercomputer today would take 150 years to crack. "Virtually any encryption program can be broken, it's just a matter of time," said Patrick Carroll, CEO of security firm ValidSoft Limited. "Current models will stand the test of time for the foreseeable future, because modern resources can't break them quickly enough. But quantum theory is probably a decade or two away from commercialization." Still, even experts who applaud the attempt say Enigma-DS raises two big red flags: no encryption algorithm was made available, and sufficient time was not given to test the code. Analysts note that encryption algorithms are generally released to the public so that they can be tested for security. They also say peer reviews typically last several years. The 75 days Enigma-DS offered is not sufficient. Uncrackable code claims are common, according to Brian Tokuyoshi, a product manager on Symantec's encryption team. Cyptography discussion groups are filled with them. "There is a difference between unbreakable and unsolved," Tokuyoshi said. "There is a long list of famous unsolved encrypted messages." One of the best-known is viewed daily by some of America's finest cryptographic minds. A sculpture called "Kryptos," which sits at the Central Intelligence Agency's headquarters, features four encoded messages. Three have been deciphered, but the fourth still remains a mystery 20 years after the artwork's debut. Typically, "unbreakable codes" remain unsolved if the sample encoded message is so short that cryptographers cannot do sufficient analysis on it or if the randomized key is known only to the author. Both are true of Enigma-DS: Robert Kleiner says he is unwilling to share his algorithm, maintaining that it's intellectual property and the key to his business. The encoded text offered on his website is also relatively short. Yet the Kleiners say they are willing to go through just about any test apart from divulging the algorithm to prove their concept. They say they will demonstrate it live, and they offered to provide analysts with a clear text to help them reverse-engineer the code. "If you think it's too good to be true, then hack us!" Robert Kleiner said. Some analysts we spoke to tried -- and failed. But that doesn't in itself indicate that it's unbreakable. A preliminary assessment of the code by EC-Council's Easttom, for instance, revealed that it failed every test of randomness he threw at it. Randomness is one of the key elements cryptographers look to when approving new encryption methods. Multiple cryptography experts called Enigma-DS a publicity stunt. Alex Gostev, chief security expert at Kaspersky Labs, dismissed it "snake-oil cryptography," citing the group's short peer review and desire to sell its technology. Robert Kleiner, in turn, accused security professionals of having ulterior motives. In his view, an unhackable code could put them out of business. "They're so stinkin' lazy," he said. "We always hear security professionals lament that there is no such thing as an unhackable code; now someone claims they have it and they immediately dismiss it. These security guys are a bunch of hypocrites." So is Enigma-DS truly an unhackable code? Without sufficient testing, we may never be sure. But as cybercrime escalates, the need for creative approaches -- even ones that sound crazy -- is also growing. To top of page

Netflix stock plunges as Starz ends contract talks

 
NEW YORK (CNNMoney) -- Netflix's streaming content catalog is about to take a big hit: Starz said late Thursday that it has ended contract renewal negotiations and will pull its movies and TV shows from Netflix early next year. The move effectively kills an arrangement that Netflix (NFLX) earlier this year called "one of our most important deals" -- because it was was one of the few that gave Netflix streaming access to relatively recent films. * * * * Print Netflix stock fell almost 9%, to $212.39 per share, in early trading Friday morning following Starz' announcement. Netflix tried to downplay the effect the cancelled contract will have on its streaming catalog. "Starz content is now down to about 8% of domestic Netflix subscribers' viewing," the company said in a written statement. "We are confident we can take the money we had earmarked for Starz renewal next year, and spend it with other content providers to maintain or even improve the Netflix experience. Starz, a pay cable network, struck a four-year licensing deal with Netflix back in 2008. Because Starz has licensing deals with several major movie studies, Netflix was able to piggyback on the arrangements and beef up its catalog of recent releases. But in June, hundreds of Sony (SNE) movies -- including high-profile titles like "The Social Network" and "Salt" -- abruptly vanished from Netflix's "watch now" catalog. In a blog post, Netflix pinned the blame on a "temporary contract issue." The issue, according to the L.A. Times, was that Starz' deal with Sony included a cap on the number of subscribers who can watch Sony movies online. Once Netflix's audience exceeded the cap, the contract was null. Netflix's vanished Sony films are an ominous sign Starz' catalog of Disney (DIS, Fortune 500) movies available for online streaming is on the verge of triggering a similar contractual cap, the newspaper reported. Netflix still has access to most of Starz' offerings, but its current deal with the network expires on Feb. 28, 2012. The two sides had been negotiating for months about an extension. Starz said Thursday that its decision to end the talks stems from "our strategy to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content." Translation: Starz wants more money. Now that streaming video is so popular, providers are upping the price for the content they're licensing to Netflix. One analyst predicts that Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012. But Starz' move hits at a particularly delicate time for Netflix, which is hiking its prices to offset those mounting content costs. Netflix said in July that it would begin charging separate prices for its DVDs-by-mail and streaming video plans, raising the cheapest-possible bill for customers who want both from $10 to $16 a month. Those price hikes kicked in on Thursday -- the same say Starz dropped its contract bombshell.

Review: Not much to see on this 3-D phone

(CNN) -- Someone with a standard smartphone might look with envy at the emerging breed of 3-D handsets with displays that don't require special glasses. However, the grass isn't always greener in three dimensions. It's just slightly fuzzier and sort of pops out of the screen at times. For the last few weeks, I've been testing LG's Thrill 4G, one of the first phones with a 3-D screen. It's set to debut in stores on Sunday, and AT&T will exclusively sell the device for $99 with a two-year service contract, or $450 without. The Thrill runs a year-old version of Google's Android operating system with add-on applications from AT&T and LG. The one I checked out immediately is called 3D Space, the playpen for the device's unique aspects. Flicking through the onscreen wheel reveals the various specialized 3-D apps, including games, a separate YouTube section and preloaded video clips. The rest of the apps are displayed in boring old 2-D. So much for the dream of seeing my e-mail inbox in the third dimension. Fact Box Gadget Review: LG Thrill 4G phone Features: 3-D display that doesn't require special glasses; dual cameras; 16G of memory; phone acts as mobile hotspot; runs on AT&T's network Price: $99 with two-year contract Our Verdict: Smartphone lovers can find better phones elsewhere, and gamers who love 3-D will be better served by Nintendo's handheld system The Thrill comes packaged with a racing, a shooting and a golf game, each made by Gameloft, as well as an interactive Gulliver's Travels e-book. The latter is a visually stunning demo of the phone's capabilities but light on story. The other games don't particularly benefit from the 3-D effects. There doesn't appear to be a way to download more games or apps that take advantage of the 3-D feature. Developers don't seem particularly eager to code their graphics in 3-D in order to feed the few Android devices on the market that support the capability. Sprint Nextel released a similar product from HTC called the Evo 3D in June. It costs twice as much as the Thrill but runs a slightly newer version of Android and runs on Sprint's faster 4G network. The Thrill, despite having 4G in its name, doesn't work on the top-of-the-line 4G network AT&T launched recently. The YouTube 3-D app on both platforms is sparse, with a handful of home movies.
 
In terms of display quality, Nintendo's 3DS handily beats the two phones and is better suited for gamers, thanks to its much larger catalog. But a recent price cut and humbling statements from executives indicates that most people aren't sold on having a portable 3-D system. Indeed, the novelty can wear off pretty quickly. The most appealing aspect of having a 3-D device, especially when there are so few worthwhile things to see, is the ability to snap pictures and videos that add an extra dimension. The Thrill has two cameras on the back to capture stereoscopic images, and they look great on the big 4.3-inch hand-held screen. A feature for converting 2-D pictures to 3-D and vice versa doesn't work very well. Pulling another dimension out of thin air, it turns out, isn't an easy task, even for mini computers. The phone has a port for plugging in an HDMI cable to a TV for viewing recordings on the big screen, but like most people, I don't own a 3-D TV to watch them on. As a phone, the Thrill works well -- or as well as one can expect on AT&T in San Francisco, where service is notoriously spotty. But 3-D features aside, the Thrill lags when compared to other Android phones. Literally. There's a noticeable split-second delay, sometimes longer, every time I wake the phone from its slumber. All that waiting doesn't help the battery life, either. A full charge doesn't even last an entire day with moderate usage.

 
The Thrill unit I tested went limp on my third day using it and was unresponsive when plugged into a charger. After removing the battery and putting it back in, the phone came back to life, and I haven't had that problem since. It's a good thing I was able to access the battery, unlike with most Apple products. Because the Thrill runs outdated software, it lacks some of the enhancements of the newer Android phones, such as a better keyboard and copy-paste functions. LG has apparently tried to make up for that with some makeovers of its own, but perhaps the company should enlist the eye of a better interior director. Smartphone lovers can find better phones elsewhere, and gamers thrilled about the idea of 3-D would be better served by Nintendo's system. But proud parents who believe a 2-D camera won't do justice to their kid's first steps may want to give the Thrill a closer look.

Transfer deadline day - the biggest moves

(CNN ) -- Transfer deadline day in Europe saw the usual frantic last-minute deals with English Premier League Arsenal swooping for a clutch of big name stars to strengthen their squad after a poor start to the season. Despite the market opening at the end of May, clubs often wait until the final moment to conclude transfer deals, hoping to buy or sell at the best possible price. England, as expected, with Arsene Wenger's team leading the way, saw the most money exchange hands, but there was also plenty of activity in the other major leagues in Italy, Spain, Germany and France. The dream moves of transfer deadline day? It was one of my dreams to play for a major European club and now I have accomplished this --Andre Santos RELATED TOPICS * Andre Santos * Diego Lugano * Joe Cole * Per Mertesacker * Owen Hargreaves * Fernando Gago Arsenal, thrashed 8-2 by Manchester United at the weekend, strengthened their defense with the signings of left-back Andre Santos from Turkish side Fenerbahce and German international center-half Per Mertesacker from Werder Bremen. The 28-year-old Santos, who has won 22 caps for Brazil, has cost the London side $10m, whilst Bremen captain Mertesacker, 26, has a wealth of international experience, having played 75 times for his country. "With this transfer to London a dream has come true, taking another step in my career. I have always considered the English Premier League an intriguing challenge," Mertesacker told the official Bremen website. Arsenal also strengthened their midfield with the signing of Yossi Benayoun on loan from Chelsea and on the stroke of the deadline at 2300 local time, announced they had landed Everton star Mikel Arteta on a four-year deal. Santos leaves a Fenerbahce side that have recently been found guilty of match-fixing, resulting in them losing their place in the Champions League. Santos' departure came quickly on the heels of the Istanbul-based side selling Uruguay captain Diego Lugano to big-spending Paris St Germain in a three-year contract. I am happy to be able to play in Italian football --Fernando Gago Lugano told PSG's official website: "I am very happy to arrive in Paris. It is a great joy for me to know that I have arrived at a club with big ambitions. PSG are the most iconic French club and my goal is to help them get as high as possible." Four players left Arsenal on a busy day for the Emirates club with Nicklas Bendtner the biggest name as he went to Sunderland on a season-long loan. Fellow striker Gilles Sunu has joined French side Lorient on a four-year deal, while fellow forward Joel Campbell has also joined Lorient, but on a season-long loan deal. Also leaving the Gunners is midfielder Henri Lansbury, who has joined relegated West Ham on a loan deal for the season. Lansbury will replace England midfielder Scott Parker, who has completed his move to Tottenham for a fee in the region of $8m. Parker starred for West Ham despite the club's relegation from the Premier League last season, being named Footballer of the Year in the process. Going the other way, from Tottenham to West Ham, is former England midfielder David Bentley who, like Lansbury, left north London for the Hammers on a one-year loan deal. Tottenham, who failed in a bid to sign Gary Cahill from Bolton, also sold England international Peter Croach and Wilson Palacios to Stoke and sent fellow international Jermaine Jenas to Aston Villa on loan. Their Scottish international defender Alan Hutton went to Villa on a permanent deal. Mega-rich Manchester City have also added to their already impressive squad of players with the surprise signing of former England midfielder Owen Hargreaves on a one-year contract. Hargreaves was released by rivals Manchester United at the end of last season after two injury-plagued years at Old Trafford and his arrival at City adds to a midfield already boasting the likes of David Silva, Yaya Toure, Samir Nasri, James Milner, Gareth Barry, Adam Johnson and Nigel de Jong. But City trimmed their squad by selling Welsh international striker Craig Bellamy back to Liverpool in a surprise late move and Shaun Wright Phillips went to Queens Park Rangers. Two midfielders have left Liverpool for the French league. Danish international Christian Poulsen has joined Ligue One newcomers Evian on a one-year deal after a disappointing spell in Merseyside, while former England international Joe Cole has joined French champions Lille on a season-long loan. Chelsea, having missed out on signing Luka Modric from Tottenham, swooped to get Raul Meireles from Liverpool after he put in a late transfer request. The four-year deal was for a reported $18 million and he will link up with former teammate Fernando Torres at Stamford Bridge. French striker David Ngog also left Anfield to sign on a three-year deal for fellow EPL side Bolton, who also picked up Gael Kakuta from Chelsea on loan. PSG are the most iconic French club and my goal is to help them get as high as possible --Diego Lugano Another London side, Fulham, have also been active, signing Czech Republic defender Zdenek Grygera on a one-year contract from Juventus and Porto striker Orlando Sa on a three-year deal. Juventus themselves have made a signing, with Hamburg's Dutch Midfielder Eljero Elia moving to Turin on a four-year contract for a fee of $13m. Elia told the official Juventus website: "This is the biggest club in Italy, it was very important that coach Antonio Conte wanted me. And Hamburg have moved immediately to replace Elia, signing Croatian international midfielder Ivo Illicevic from Kaiserslautern on a four-year contract for a fee of $6 million. Spanish giants Real Madrid have trimmed their squad with three players leaving the Bernabeu, winger Pedro Leon and midfielders Fernando Gago and Royston Drenthe. Leon has been loaned back to his former club Getafe with the option to buy at the end of the season, while Argentine star Gago has joined AS Roma on loan. "I am happy to be able to play in Italian football," he told Spanish television. Dutchman Drenthe signed for EPL Everton on a season-long loan deal. Elsewhere, there have also been plenty of other comings-and-goings in Italy, with Udinese signing Uruguay international right-back Maximiliano Pereyra from River Plate on a five-year contract. And Inter Milan have also been active on the final day, signing Argentine striker Mauro Zarate on a season-long loan deal from Lazio for a fee of $4 million. Meanwhile, two defenders have left the San Siro. Full-back Davide Santon has completed his move to Newcastle on a five-year contract, while the Nerazzurri have released Colombian Nelson Rivas from his deal, which still had a year to run. Italian champions AC Milan have also strengthened the midfield with the signing of Antonio Nocerino from Palermo on a five-year deal. Nocerino, 26, has made more than 100 appearances for Palermo since joining from Juventus in 2008 and has won six caps for Italy. Zarate is not the only striker leaving Lazio on loan, with Sergio Floccari moving to rivals Parma with a view to a permanent move. Champions League side Napoli have also strengthened their squad with the signing of defender Ignacio David Fideleff from Newell's Old Boys on a five-year contract for a fee of $4 million. Roma have signed Gago and Bosnian midfielder Miralem Pjanic from French side Lyon for $14 million on a four-year contract. And, in the Netherlands, Dutch champions Ajax have picked up Russian striker Dmitri Bulykin from Belgian side Anderlecht on a free transfer.

Lyon stars on his Test debut to skittle Sri Lanka

 
(CNN) -- Australia's Nathan Lyon made a sensational Test debut as his five-wicket haul skittled Sri Lanka on the second day in Galle and left his side in a strong position. Off-spinner Lyon, a controversial selection for the tour, took a wicket with his very first ball and ended with 5-34 as Sir Lanka crumbled to 105 all out. Australia, who scored 273 in their first innings, reached 115-6 after a collapse of their own, but still led by 283 runs on a deteriorating wicket. 16 wickets fell Thursday with Australian all-rounder Shane Watson chipping in with three wickets in 10 balls, while another newcomer Trent Copeland struck in his first over. But it was Lyon who made the biggest impression, becoming only the 14th bowler in Test history to take a wicket with his first ball as he removed Kumar Sangakkara, caught at slip by Michael Clarke. Watson played havoc with the Sri Lanka middle order as he removed Thilan Samaraweera, Prasanna Jayawardene and Paranavitana, all trapped leg before wicket to reverse swing. Lyon, who had just four first class matches ahead of the tour, then ripped through the home tail and his caught and bowled to remove last man Chanaka Welegedara completed his superb spell. Australia, looking to build a massive lead, lost Watson first ball and former captain Ricky Ponting for just 4, Clarke led from the front with 60 and first innings hero Hussey made 15 but Rangana Herath dismissed them with successive balls and then sent back Brad Haddin in his next over to leave Australia six down at the close.

Turkey dropped for 2012 F1 season

 
(CNN) -- The Turkish Grand Prix has been dropped as a venue on the Formula One calendar for the 2012 season. The Istanbul circuit was introduced into the world championship in 2005 and McLaren's Jenson Button won this year's edition of the race in July. Despite Turkey losing their race, the 20-round season will be the biggest in the in the history of F1, with Bahrain back in the fold. The 2011 grand prix in the gulf kingdom was canceled due to civil unrest in the country, but the 2012 event at the Sakhir circuit is set to take place on April 22. Formula One will also return to the United States for the first time since 2007 at a newly-built track in Austin, Texas. The U.S. previous hosted a race in Indianapolis. The season will begin in Australia for the second year in-a-row at the Melbourne Park street circuit. The final grand prix of the year with take place in Brazil, where Britain's Lewis Hamilton dramatically clinched the world championship in 2008. The next round of this year's championship is the Italian Grand Prix at Monza on September 11 with Red Bull's Sebastian Vettel holding a commanding lead in the title race. 2012 Formula One season in full: Australia March 18 Malaysia March 25 China April 15 Bahrain April 22 Spain May 13 Monaco May 27 Canada June 10 Europe June 24 Great Britain July 8 Germany July 22 Hungary July 29 Belgium September 2 Italy September 9 Singapore September 23 Japan October 7 Korea October 14 India October 28 Abu Dhabi November 4 United States November 18 Brazil November 25

Dougherty leads as McIlroy and Kaymer give chase

 
(CNN) -- England's Nick Dougherty could salvage a disastrous season, as he led the European Masters after the first round but has major winners Rory McIlroy and Martin Kaymer as his nearest challengers at Crans-sur-Sierre. Dougherty, rated one of the most promising golfers on the European Tour, has missed 21 cuts in a row to slip to 791st in the world rankings but rediscovered his form Thursday with an eight-under 63 in the Swiss Alps. U.S. Open champion McIlroy and 2010 PGA Champion Kaymer were two shots back after 65s in the morning rounds, sharing second with England's Gary Boyd and Korean Lee Sung. In a star-studded line-up, world number two and his stablemate and British Open champion Darren Clarke were tied for eighth after 67s. In an unusual twist, the 29-year-old Dougherty was interviewed by his golf presenter wife Diane after his round and admitted he had not been easy to live with during his unexpected slump. "It's been tough coming home and having to deal with constant disappointment and I'm really, really proud of how I played. "It feels great, obviously. I've not had a lot to be happy about, and you've had to take the brunt of it and put up with me," he added on Sky Sports. Kaymer and McIlroy had set the morning pace with six under 65s, while Lee Westwood was set to join them until two late bogeys. McIlroy is playing his first tournament since he injured himself hitting a tree root at this year's U.S. PGA Championship. "My arm's nearly back to 100 per cent," he told the official European Tour website. "I had a good bit of treatment on it and rested it." Kaymer, who has slipped back to fifth in the rankings after briefly topping them, finished with back-to-back birdies to reinforce his challenge.

Greene takes gold in Daegu

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(CNN) -- Dai Greene completed a memorable hat-trick of titles ahead of next year's Olympics in London by storming to victory in the 400 meters hurdles at the world championships in Daegu Thursday. Greene, already the European and Commonwealth champion in the discipline, added the global crown to his tally with a scintillating performance to give Britain their first gold of the week. He surged off the final hurdle to overtake Puerto Rico's Javier Culson with LJ van Zyl of South Africa taking the bronze. Double Olympic champion Angelo Taylor, troubled by a foot injury, finished out of the medals. Greene, whose winning time was 48.26 seconds, timed his move perfectly in a race disrupted by two faulty starts and cool and windy conditions "Coming off the last hurdle I had so much momentum," Greene told Channel 4. He will go into next year's London Games as favorite to complete the full set of medals in major championships. Greene said he had been inspired by the surprise silver medal of teammate Hannah England in the women's 1500 meters final which preceded his event. England finished second to Jenny Simpson of the United States, with Spain's Natalia Rodriquez in third as for once African athletes were out of the medals in a distance event. But Kenyan runners dominated the men's 3,000 meters steeplechase with Ezekiel Kemboi defending his world title and having time to celebrate as he took gold ahead of teammate Brimin Kipruto. Simpson's gold was one of three for the medal-leading U.S. team with Jesse Williams winning the high jump with a 2.35m clearance ahead of Russia's Aleksey Dmitrik and Trevor Barry of the Bahamas, while Lashinda Demus cruised to victory in the women's 400m hurdles ahead of defending champion Melaine Walker of Jamaica. The other gold decided was in the women's triple jump which went to Ukraine's Olha Saladuha with a 14.94m effort.

Serena powers into third round in 49 minutes

 
(CNN) -- Serena Williams was detained on court for just 49 minutes in reaching the third round of the U.S. Open Thursday with a brutal demolition of Dutch qualifier Michaella Krajicek. Williams, who is the favorite for the final grand slam of the season despite her lowly 28th seeding, brushed aside Krajicek, who is the younger sister of former Wimbledon champion Richard. Williams wrapped up the first set in just 23 minutes with three breaks of service before Krajicek finally held at the start of the second. It proved a false dawn as Williams continued to punish her with big serves and powerful returns and the end came inevitably with a thumping ace from the American. Williams had nearly a year out through injury and illness, but has won two tournaments in the U.S. hard court season and looks to be back to the form which has seen her collect 13 grand slams. The 29-year-old's thoughts are with her sister Venus who withdrew from the tournament Wednesday after revealing she suffers from the auto-immune disease Sjogren's Syndrome "I know she's a fighter and she's really strong," Serena said. "She's great. I think she's really happy now that she knows what it is after all this time. "I think, if anything, it's going to help her now to treat it and go forward." A tougher test in the form of fourth seed Victoria Azarenka awaits Williams if the Belarus star can get past Argentina's Gisela Dulko later Thursday. World number one Caroline Wozniacki needed just 63 minutes on court in her 6-2, 6-0 victory over Arantxa Rus from the Netherlands on Thursday evening. The 21-year-old Dane will now play American Vania King for a place in the last 16. In other early action, 11th seed Jelena Jankovic continued her impressive run with a 6-3 6-4 win over Jelena Dokic of Australia to reach the last 32.

Djokovic in demolition mode; Federer sweeps Sela aside

  
(CNN) -- World number one Novak Djokovic dropped just two games on his way to the third round of the U.S. Open at Flushing Meadows on Thursday evening. The Serb, who has lost only twice in 2011, annihilated Argentine Carlos Berlocq 6-0, 6-0, 6-2 in the Arthur Ashe Stadium. "I played good tennis. Obviously I wanted to win but on the other hand we all try to engage the crowd. I think the crowd got engaged in the third set. It was a lot of entertainment," Djokovic said afterwards, AFP reported. Earlier in the day, Roger Federer went past Andre Agassi in the grand slam record books as he beat Israel's Dudi Sela 6-3 6-2 6-2. It was the Swiss maestro's 225th singles win in the four major tournaments in tennis, overtaking Agassi for second on the all-time list. Agassi is the last over-30 to win a grand slam back in 2003, a feat Federer will be hoping to achieve by Sunday fortnight. Only Jimmy Connors with 233 victories is now ahead of Federer, who is bidding for a sixth U.S. Open crown. Federer looked below his best in his first round match against Santiago Giraldo, but put that right against Sela, who lacked the power to match him. The third seed dropped only seven points on service on the Arthur Ashe Stadium Court and in the heat of the day seemed happier than his first match in a night session when he had complained about the slowness of the courts. A single break gave him the first set and two breaks apiece in the following two sets saw him close out the match in impressive style. His third round opponent will be 27th seed Marin Cilic of Croatia, who brushed aside the exciting young Australian Bernard Tomic in straight sets, for the loss of just three games later in the afternoon. The first shock of Thursday came on Louis Armstrong where Spain's Juan Carlos Ferrero came from two sets to one down to beat seventh seed Gael Monfils of France 7-6 5-7 6-7 6-4 6-4 in a near four-hour marathon match. But 11th seed Jo-Wilfried Tsonga of France, who shocked Federer at Wimbledon, continued his impressive march with a 6-3 7-5 6-2 win over Ukraine's Sergei Bubka.