Archiv für das Jahr 2015

Is Your Messaging App Encrypted?

Is Your Messaging App Encrypted?

messaging-apps-whatsapp

Justin Sullivan / Getty Images

https://recode.net/2015/12/21/is-your-messaging-app-encrypted

teslas self-driving car

Tesla CEO Elon Musk has made a bold prediction: Tesla Motors will have a self-driving car within two years.

“I think we have all the pieces,” Musk told Fortune, “and it’s just about refining those pieces, putting them in place, and making sure they work across a huge number of environments — and then we’re done. It’s a much easier problem than people think it is.”

Although Musk’s comments to Fortune came Monday, The Street pegged a rise in Tesla’s shares to the comments on Tuesday. The ambitious timeframe appeared to be offering support to the stock again today, with shares trading up $1.47, or 0.64 percent, at $231.42 around 7:18 a.m. PST.

Musk’s driverless-car comments may have been overshadowed initially by the achievement of SpaceX on Monday night in landing a rocket during a commercial mission for the first time. Musk is also CEO of SpaceX.

This is the most aggressive timeline Musk has mentioned. While Musk claims the problem is easier than people think it is, he doesn’t think the tech is so accessible that any hacker could create a self-driving car. Musk took the opportunity to call out hacker George Hotz, who claimed via a Bloomberg article last week that he had developed self-driving car technology that could compete with Tesla’s. Musk said he wasn’t buying it.

“But it’s not like George Hotz, a one-guy-and-three-months problem,” Musk said to Fortune. “You know, it’s more like, thousands of people for two years.”

The company went so far as to post a statement last week about Hotz’s achievement.

“We think it is extremely unlikely that a single person or even a small company that lacks extensive engineering validation capability will be able to produce an autonomous driving system that can be deployed to production vehicles,” the company stated. “It may work as a limited demo on a known stretch of road — Tesla had such a system two years ago — but then requires enormous resources to debug over millions of miles of widely differing roads.”

While Tesla is unconcerned about Hotz, the company’s new timeline may have other autonomous car developers hitting the accelerator. Tech companies like Google and Apple, in addition to automakers such as Volvo and General Motors are all competing to be among the first to offer some form of self-driving tech. Many believe the early 2020s would be a realistic timeframe to expect to see the public engaging with self-driving cars.

Just yesterday, it was reported that Google and Ford will enter into a joint venture to build self-driving vehicles with Google’s technology, according to Yahoo Autos, citing sources familiar with the plans. The official announcement is expected to come during the Consumer Electronics Show in January, but there is no manufacturing timeline.

But even if Tesla moves quickly on self-driving cars, are consumers ready for them? The Palo Alto-based carmaker’s recent Firmware 7.1 Autopilot update includes restrictions on self-driving features. The update only allows its Autosteer feature to engage when the Model S is traveling below the posted speed limit. The update came shortly after it was reported that drivers were involved in dangerous activities while the Autopilot features were engaged.

Source: http://www.bizjournals.com/sanjose/news/2015/12/23/elon-musks-bold-new-timeline-for-driverless-cars.html?ana=yahoo

George Hotz, the first person to hack the iPhone, built a self-driving car in a month, declined a personal job offer from Teslas Elon Musk

George Hotz, the first person to hack the iPhone, built a self-driving car in a month, declined a personal job offer from Teslas Elon Musk.

And pursues his Linux Based Self-Driving Autonomous Car Project.

Elon Musk OpenAI is far more than saving the world

Elon Musk’s Billion-Dollar AI Plan Is About Far More Than Saving the World

Elon Musk.

Look out Elon – Porsche showing off the Mission E

Porsche-MissionE-2 Porsche-MissionE-3 Porsche-MissionE-4 Porsche-MissionE-5 Porsche-MissionE-6 Porsche-MissionE-7

US-Electric-Car-Sales

 

In September, Porsche showed off the Mission E, a fully electric and fully beautiful concept made to dethrone Tesla motors as the EV industry’s king of cool.

Today, Porsche announced it’s investing more than a billion dollars to bring the Mission E to production. As in, you’ll be able to buy one. We’re light on details—like the size of the battery, or when we’ll actually see one on the road—but we’ve got the most important numbers. The motor (or motors, Porsche hasn’t said) will produce more than 600 horsepower. The four-seater Mission E will go from 0 to 62 mph in under 3.5 seconds. And it will go 310 miles on a charge.

Porsche, which faces increasingly strict fuel emission standards from US and European authorities, been working with batteries for a few years now, with top notch results. It already offers plug-in hybrid versions of the Panamera and Cayenne, it’s successfully raced a 911 hybrid. Then there’s the flat-out amazing gas-electric 918 Spyder supercar and 919 Hybrid that won at Le Mans this year. So it makes sense to make the next step a full electric.

Compared to Tesla’s current range-topper, the excellent Model S P90D, the Mission E will offer a bit less power and a slower acceleration time. But Porsche wins on range—the longest-legged Tesla goes roughly 286 miles on a charge. Here, the Germans have a second advantage: They’re working on an 800-volt charger that will power the car up to 80 percent in just 15 minutes, half the time it takes the Tesla.

Porsche, which faces increasingly strict fuel emission standards from US and European authorities, been working with batteries for a few years now, with top notch results. It already offers plug-in hybrid versions of the Panamera and Cayenne, it’s successfully raced a 911 hybrid. Then there’s the flat-out amazing gas-electric 918 Spyder supercar and 919 Hybrid that won at Le Mans this year. So it makes sense to make the next step a full electric.

Porsche plans to build the battery into the floor of the car, like Tesla does, so you can expect a very low center of gravity, great news for performance. But really, the Mission E wins on looks. The Model S and Model X SUV are lovely designs, but the Porsche is simply gorgeous, in the way only a Porsche can be. We’ve only seen the concept version, but hopefully Porsche will be smart enough to change as little as possible on the way to production.

http://www.wired.com/2015/12/porsches-electric-mission-e-is-poised-to-whoop-teslas-model-s/

Apples Job Interview Questions

Apple is known for being one of the most challenging and exciting places to work, so it’s not surprising to learn that getting a job there is no easy task.

Like Google and other big tech companies, Apple asks both technical questions based on your past work experience and some mind-boggling puzzles.

We combed through recent posts on Glassdoor to find some of the toughest interview questions candidates have been asked.

Some require solving tricky math problems, while others are simple but vague enough to keep you on your toes.

“If you have 2 eggs, and you want to figure out what’s the highest floor from which you can drop the egg without breaking it, how would you do it? What’s the optimal solution?” — Software Engineer candidate

“Who is your best friend?” — Family Room Specialist candidate

„Describe an interesting problem and how you solved it.“ — Software Engineer candidate

„Explain to an 8 year old what a modem/router is and its functions.“ — At-Home Advisor candidate

„How many children are born every day?“ — Global Supply Manager candidate

„You have a 100 coins laying flat on a table, each with a head side and a tail side. 10 of them are heads up, 90 are tails up. You can’t feel, see or in any other way find out which side is up. Split the coins into two piles such that there are the same number of heads in each pile.“ — Software Engineer candidate

"You have a 100 coins laying flat on a table, each with a head side and a tail side. 10 of them are heads up, 90 are tails up. You can't feel, see or in any other way find out which side is up. Split the coins into two piles such that there are the same number of heads in each pile." — Software Engineer candidate

AP Photo/Ariel Schalit

„Describe yourself, what excites you?“ — Software Engineer candidate

„If we hired you, what do you want to work on?“ — Senior Software Engineer candidate

„There are three boxes, one contains only apples, one contains only oranges, and one contains both apples and oranges. The boxes have been incorrectly labeled such that no label identifies the actual contents of the box it labels. Opening just one box, and without looking in the box, you take out one piece of fruit. By looking at the fruit, how can you immediately label all of the boxes correctly?“ — Software QA Engineer candidate

„Scenario: You’re dealing with an angry customer who was waiting for help for the past 20 minutes and is causing a commotion. She claims that she’ll just walk over to Best Buy or the Microsoft Store to get the computer she wants. Resolve this issue.“ — Specialist candidate

“How would you breakdown the cost of this pen?” — Global Supply Manager candidate

“A man calls in and has an older computer that is essentially a brick. What do you do?” — Apple Care At-Home Consultant candidate

“A man calls in and has an older computer that is essentially a brick. What do you do?” — Apple Care At-Home Consultant candidate

artisrams via www.flickr.com creative commons

“Are you smart?” — Build Engineer candidate

„What are your failures, and how have you learned from them?“ — Software Manager candidate

„Have you ever disagreed with a manager’s decision, and how did you approach the disagreement? Give a specific example and explain how you rectified this disagreement, what the final outcome was, and how that individual would describe you today.“ — Software Engineer candidate

"Have you ever disagreed with a manager's decision, and how did you approach the disagreement? Give a specific example and explain how you rectified this disagreement, what the final outcome was, and how that individual would describe you today." — Software Engineer candidate

Jamie Squire / Getty

“You put a glass of water on a record turntable and begin slowly increasing the speed. What happens first — does the glass slide off, tip over, or does the water splash out?“ — Mechanical Engineer candidate

“You put a glass of water on a record turntable and begin slowly increasing the speed. What happens first — does the glass slide off, tip over, or does the water splash out?" — Mechanical Engineer candidate

Digital Trends

„Tell me something that you have done in your life which you are particularly proud of.“ — Software Engineering Manager candidate

„Why should we hire you?“ — Senior Software Engineer candidate

„Are you creative? What’s something creative that you can think of?“ — Software Engineer candidate

„Describe a humbling experience.“ — Apple Retail Specialist candidate

„What’s more important, fixing the customer’s problem or creating a good customer experience?“ — Apple At Home Advisor candidate

"What's more important, fixing the customer's problem or creating a good customer experience?" — Apple At Home Advisor candidate

Claudio Villa/Getty Images

“Why did Apple change its name from Apple Computers Incorporated to Apple Inc.?” — Specialist candidate

“Why did Apple change its name from Apple Computers Incorporated to Apple Inc.?” — Specialist candidate

Universal

„You seem pretty positive, what types of things bring you down?“ — Family Room Specialist candidate

„Show me (role play) how you would show a customer you’re willing to help them by only using your voice.“ — College At-Home Advisor candidate

„What brings you here today?“ — Software Engineer candidate

"What brings you here today?" — Software Engineer candidate

Evil Erin/flickr

„I need a job?“

„Given an iTunes type of app that pulls down lots of images that get stale over time, what strategy would you use to flush disused images over time?“ — Software Engineer candidate

"Given an iTunes type of app that pulls down lots of images that get stale over time, what strategy would you use to flush disused images over time?" — Software Engineer candidate

iTunes

„If you’re given a jar with a mix of fair and unfair coins, and you pull one out and flip it 3 times, and get the specific sequence heads heads tails, what are the chances that you pulled out a fair or an unfair coin?“ — Lead Analyst candidate

"If you're given a jar with a mix of fair and unfair coins, and you pull one out and flip it 3 times, and get the specific sequence heads heads tails, what are the chances that you pulled out a fair or an unfair coin?" — Lead Analyst candidate

slgckgc/flickr

„What was your best day in the last 4 years? What was your worst?“ — Engineering Project Manager candidate

„When you walk in the Apple Store as a customer, what do you notice about the store/how do you feel when you first walk in?“ — Specialist candidate

"When you walk in the Apple Store as a customer, what do you notice about the store/how do you feel when you first walk in?" — Specialist candidate

REUTERS/ROBERT GALBRAITH

„Why do you want to join Apple and what will you miss at your current work if Apple hired you?“ — Software Engineer candidate

"Why do you want to join Apple and what will you miss at your current work if Apple hired you?" — Software Engineer candidate

Jay Yarow

„How would you test your favorite app?“ — Software QA Engineer candidate

„What would you want to do 5 years from now?“ — Software Engineer candidate

"What would you want to do 5 years from now?" — Software Engineer candidate

Flickr/COD Newsroom

„How would you test a toaster?“ — Software QA Engineer candidate

Kreatives Denken, knifflige Logikprobleme Den Jobkandidaten werden je nach dem Bereich, für den sie sich bewerben, Fragen zu ihrem technischen Verständnis gestellt. Teilweise müssen sie Empathie beweisen oder Logikrätsel lösen und kreatives Denken an den Tag legen.

  • Frage an einen Softwareentwickler: Wenn Sie zwei Eier halten und überprüfen möchten aus welcher Höhe Sie sie fallen lassen können, ohne sie kaputt zu machen. Wie würden Sie das angehen?
  • Frage an einen Hardware-Ingenieur: Sie stellen ein Glas Wasser auf einen Plattenspieler, der sich zunehmend schneller dreht. Was geschieht zuerst: rutscht das Glas herunter, schwappt das Wasser über oder kippt das Glas um?
  • Frage an einen Kandidaten für den Telefonsupport: Erklären Sie einem Achtjährigen wie ein Modem/Router funktioniert.
  • Frage an einen Bewerber im globalen Vertrieb: Wie viele Kinder kommen täglich zur Welt?
  • Frage für einen Family-Room-Bewerber: Sie wirken sehr positiv, was sorgt bei Ihnen für schlechte Laune?
  • Frage an einen Apple-Specialist-Kandidaten: Warum änderte Apple seinen Namen von Apples Computer Incorporated zu Apple Inc.?
  • Frage an einen Software-Entwickler: Auf einem Tisch liegen 100 Münzen. Zehn mit der Kopfseite nach oben, 90 mit der Zahl. Sie können weder erfühlen, noch sehen, noch auf irgendeine andere Weise herausfinden mit welcher Seite die Münzen nach oben zeigen. Wie teilen sie die Münzen in zwei Stapel, damit bei beiden dieselbe Anzahl mit dem Kopf nach oben zeigt?
  • Frage an einen Software-Entwickler: Wie würden Sie einen Toaster testen?
  • Frage an einen Bewerber im globalen Vertrieb: Wie berechnen Sie die Kosten für einen Kugelschreiber?
  • Frage an einen Apple-Specialist-Kandidaten: Sie haben es mit einer verärgerten Kundin zu tun, die seit 20 Minuten auf Hilfe wartet und für Wirbel sorgt. Sie sagt, dass sie nun zu Best Buy oder einem Microsoft-Store geht, um den Computer zu kaufen, die sie möchte. Lösen Sie dieses Problem.
  • Fragen an einen Bewerber für den Apple-Care-Telefonsupport: Ein Mann ruft an und hat einen Computer, der im Grunde nur noch Schrott ist. Was tun Sie?

derstandard.at/2000026847404/Wuerden-Sie-die-Fragen-von-Apples-Bewerbungsgespraechen-bestehen

LRRK2 Parkinson Sergey Brin

Click to Open Overlay Gallery

Source: http://www.wired.com/2010/06/ff_sergeys_search/

Apple now makes 94% of the profits in the smartphone industry

Source: http://www.businessinsider.de/apple-dominates-profits-by-smartphone-maker-2015-11?r=US&IR=T

Smartphone_Share_2015

Apple now makes 94% of the profits in the smartphone industry, according to recent research by Canacord.

This historical chart compiled by Statista shows how quickly and utterly Apple has dominated the smartphone market. Samsung is now the only other major handset company earning significant profits from smartphones.

Five years ago, the iPhone was still the top profit-maker, but a lot of other companies were in the game. Since then, the platform battle has become a two-player race between Apple’s iOS and Google’s Android, driving third-way competitors like BlackBerry and Microsoft/Nokia down into the loss zone. The fierce competition between Android handset makers, particularly with the rise of inexpensive Chinese Android phones, has also sucked a lot of profit out of the market.

Encryption Is Being Scapegoated To Mask The Failures Of Mass Surveillance

Source: http://techcrunch.com/2015/11/17/the-blame-game/

Well that took no time at all. Intelligence agencies rolled right into the horror and fury in the immediate wake of the latest co-ordinated terror attacks in the French capital on Friday, to launch their latest co-ordinated assault on strong encryption — and on the tech companies creating secure comms services — seeking to scapegoat end-to-end encryption as the enabling layer for extremists to perpetrate mass murder.

There’s no doubt they were waiting for just such an ‘opportune moment’ to redouble their attacks on encryption after recent attempts to lobby for encryption-perforating legislation foundered. (A strategy confirmed by a leaked email sent by the intelligence community’s top lawyer, Robert S. Litt, this August — and subsequently obtained by the Washington Post — in which he anticipated that a “very hostile legislative environment… could turn in the event of a terrorist attack or criminal event where strong encryption can be shown to have hindered law enforcement”. Et voila Paris… )

Speaking to CBS News the weekend in the immediate aftermath of the Paris attacks, former CIA deputy director Michael Morell said: “I think this is going to open an entire new debate about security versus privacy.”

“We, in many respects, have gone blind as a result of the commercialization and the selling of these devices that cannot be accessed either by the manufacturer or, more importantly, by us in law enforcement, even equipped with search warrants and judicial authority,” added New York City police commissioner, William J. Bratton, quoted by the NYT in a lengthy article probing the “possible” role of encrypted messaging apps in the Paris attacks.

Elsewhere the fast-flowing attacks on encrypted tech services have come without a byline — from unnamed European and American officials who say they are “not authorized to speak publicly”. Yet are happy to speak publicly, anonymously.

The NYT published an article on Sunday alleging that attackers had used “encryption technology” to communicate — citing “European officials who had been briefed on the investigation but were not authorized to speak publicly”. (The paper subsequently pulled the article from its website, as noted by InsideSources, although it can still be read via the Internet Archive.)

The irony of government/intelligence agency sources briefing against encryption on condition of anonymity as they seek to undermine the public’s right to privacy would be darkly comic if it weren’t quite so brazen.

Seeking to outlaw technology tools that are used by the vast majority of people to protect the substance of law-abiding lives is not just bad politics, it’s dangerous policy.

Here’s what one such unidentified British intelligence source told Politico: “As members of the general public get preoccupied that the government is spying on them, they have adopted these applications and terrorists have found them tailor-made for their own use.”

It’s a pretty incredible claim when you examine it. This unknown spook mouthpiece is saying terrorists are able to organize acts of mass murder as a direct consequence of the public’s dislike of government mass surveillance. Take even a cursory glance at the history of terrorism and that claim folds in on itself immediately. The highly co-ordinated 9/11 attacks of 2001 required no backdrop of public privacy fears in order to be carried out — and with horrifying, orchestrated effectiveness.

In the same Politico article, an identified source — J.M. Berger, the co-author of a book about ISIS — makes a far more credible claim: “Terrorists use technology improvisationally.”

Of course they do. The co-founder of secure messaging app Telegram, Pavel Durov, made much the same point earlier this fall when asked directly by TechCrunch about ISIS using his app to communicate. “Ultimately the ISIS will always find a way to communicate within themselves. And if any means of communication turns out to be not secure for them, then they switch to another one,” Durov argued. “I still think we’re doing the right thing — protecting our users privacy.”

Bottom line: banning encryption or enforcing tech companies to backdoor communications services has zero chance of being effective at stopping terrorists finding ways to communicate securely. They can and will route around such attempts to infiltrate their comms, as others have detailed at length.

Here’s a recap: terrorists can use encryption tools that are freely distributed from countries where your anti-encryption laws have no jurisdiction. Terrorists can (and do) build their own securely encrypted communication tools. Terrorists can switch to newer (or older) technologies to circumvent enforcement laws or enforced perforations. They can use plain old obfuscation to code their communications within noisy digital platforms like the Playstation 4 network, folding their chatter into general background digital noise (of which there is no shortage). And terrorists can meet in person, using a network of trusted couriers to facilitate these meetings, as Al Qaeda — the terrorist group that perpetrated the highly sophisticated 9/11 attacks at a time when smartphones were far less common, nor was there a ready supply of easy-to-use end-to-end encrypted messaging apps — is known to have done.

Point is, technology is not a two-lane highway that can be regulated with a couple of neat roadblocks — whatever many politicians appear to think. All such roadblocks will do is catch the law-abiding citizens who rely on digital highways to conduct more and more aspects of their daily lives. And make those law-abiding citizens less safe in multiple ways.

There’s little doubt that the lack of technological expertise in the upper echelons of governments is snowballing into a very ugly problem indeed as technology becomes increasingly sophisticated yet political rhetoric remains grounded in age-old kneejerkery. Of course we can all agree it would be beneficial if we were able to stop terrorists from communicating. But the hard political truth of the digital era is that’s never going to be possible. It really is putting the proverbial finger in the dam. (There are even startups working on encryption that’s futureproofed against quantum computers — and we don’t even have quantum computers yet.)

Another hard political truth is that effective counter terrorism policy requires spending money on physical, on-the-ground resources — putting more agents on the ground, within local communities, where they can gain trust and gather intelligence. (Not to mention having a foreign policy that seeks to promote global stability, rather than generating the kind of regional instability that feeds extremism by waging illegal wars, for instance, or selling arms to regimes known to support the spread of extremist religious ideologies.)

Yet, in the U.K. at least, the opposite is happening — police force budgets are being slashed. Meanwhile domestic spy agencies are now being promised more staff, yet spooks’ time is increasingly taken up with remote analysis of data, rather than on the ground intelligence work. The U.K. government’s draft new surveillance laws aim to cement mass surveillance as the officially sanctioned counter terror modus operandi, and will further increase the noise-to-signal ratio with additional data capture measures, such as mandating that ISPs retain data on the websites every citizen in the country has visited for the past year. Truly the opposite of a targeted intelligence strategy.

The draft Investigatory Powers Bill also has some distinctly ambiguous wording when it comes to encryption — suggesting the U.K. government is still seeking to legislate a general ability that companies be able to decrypt communications. Ergo, to outlaw end-to-end encryption. Yes, we’re back here again. You’d be forgiven for thinking politicians lacked a long-term memory.

Effective encryption might be a politically convenient scapegoat to kick around in the wake of a terror attack — given it can be used to detract attention from big picture geopolitical failures of governments. And from immediate on the ground intelligence failures — whether those are due to poor political direction, or a lack of resources, or bad decision-making/prioritization by overstretched intelligence agency staff. Pointing the finger of blame at technology companies’ use of encryption is a trivial diversion tactic to detract from wider political and intelligence failures with much more complex origins.

(On the intelligence failures point, questions certainly need to be asked, given that French and Belgian intelligence agencies apparently knew about the jihadi backgrounds of perpetrators of the Paris attacks. Yet weren’t, apparently, targeting them closely enough to prevent Saturday’s attack. And all this despite France having hugely draconian counter-terrorism digital surveillance laws…)

But seeking to outlaw technology tools that are used by the vast majority of people to protect the substance of law-abiding lives is not just bad politics, it’s dangerous policy.

Mandating vulnerabilities be built into digital communications opens up an even worse prospect: new avenues for terrorists and criminals to exploit. As officials are busy spinning the notion that terrorism is all-but only possible because of the rise of robust encryption, consider this: if the public is deprived of its digital privacy — with terrorism applied as the justification to strip out the robust safeguard of strong encryption — then individuals become more vulnerable to acts of terrorism, given their communications cannot be safeguarded from terrorists. Or criminals. Or fraudsters. Or anyone incentivized by malevolent intent.

If you want to speculate on fearful possibilities, think about terrorists being able to target individuals at will via legally-required-to-be insecure digital services. If you think terror tactics are scary right now, think about terrorists having the potential to single out, track and terminate anyone at will based on whatever twisted justification fits their warped ideology — perhaps after that person expressed views they do not approve of in an online forum.

In a world of guaranteed insecure digital services it’s a far more straightforward matter for a terrorist to hack into communications to obtain the identity of a person they deem a target, and to use other similarly perforated technology services to triangulate and track someone’s location to a place where they can be made the latest victim of a new type of hyper-targeted, mass surveillance-enabled terrorism. Inherently insecure services could also be more easily compromised by terrorists to broadcast their own propaganda, or send out phishing scams, or otherwise divert attention en masse.

The only way to protect against these scenarios is to expand the reach of properly encrypted services. To champion the cause of safeguarding the public’s personal data and privacy, rather than working to undermine it — and undermining the individual freedoms the West claims to be so keen to defend in the process.

While, when it comes to counter terrorism strategy, what’s needed is more intelligent targeting, not more mass measures that treat everyone as a potential suspect and deluge security agencies in an endless churn of irrelevant noise. Even the robust end-to-end encryption that’s now being briefed against as a ‘terrorist-enabling evil’ by shadowy officials on both sides of the Atlantic can be compromised at the level of an individual device. There’s no guaranteed shortcut to achieve that. Nor should there be — that’s the point. It takes sophisticated, targeted work.

But blanket measures to compromise the security of the many in the hopes of catching out the savvy few are even less likely to succeed on the intelligence front. We have mass surveillance already, and we also have blood on the streets of Paris once again. Encryption is just a convenient scapegoat for wider policy failures of an industrial surveillance complex.

So let’s not be taken in by false flags flown by anonymous officials trying to mask bad political decision-making. And let’s redouble our efforts to fight bad policy which seeks to entrench a failed ideology of mass surveillance — instead of focusing intelligence resources where they are really needed; honing in on signals, not drowned out by noise.

Disrupting automotive through adaptation of technology business model – How to attract MILLENNIALS

n the US 28% of cars are leased. While it is uncommon to lease inexpensive vehicles and family cars, close to half of all luxury cars are. That percentage is only higher in one other car-segment: electric vehicles (EVs): In the first 3 quarters of 2015 75% of new EVs have been leased!

The most common explanation is that EVs are still too expensive to buy. Another popular reason is that customers do not trust the durability of electric powertrains and lithium-ion battery technology. Finally, customers claim that driving range might be an issue and thus prefer leasing over buying (more on my thoughts on driving range anxiety)

All 3 reasons play a major role. All of them have been researched by J.D. Power back in 2010. However, they don’t sufficiently explain the high lease rates among EV customers today. Here are three insights why car leases are 3-4x more common in the EV segment and why car ownership is becoming rare among young customers.

GenY (Millennials) Adapts New Purchasing Habits

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Average Earnings for Young Adults in $2013

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Cars Sold in Millions per Generation

Car leases are already the most popular way of „purchasing“ a luxury and electric vehicle (EV). First, I documented why millennials/younger customers are more likely to lease. Second, I described why technology changes can lead to reduced interest in buying. Finally, I tried to proof that smartphones have given users the ability to experience freedom without owning a car.

These 3 points lead to an assumption: GenY, as the second largest car buying generation, is leading the ownership disruption in the car segment. They buy fewer cars per 1000 citizens, have the highest % of leases and have different expectations for cars (in terms of technologies and features). How can car manufacturers attract GenY and bring driving back?

Lets take a look outside the car industry. How are technology firms attracting young customers? The smartphone market, like the car market, has taken a hit in the last few years. The handset replacement cycle has slowed down significantly. It is the slowest since the introduction of the iPhone in 2007. In 2014, 143 million mobile phones were sold in the United States (-15%). Of them ~90% were smartphones. 2007 users upgraded their phones every ~19 months; today they upgrade every 26+ months.

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Mobile Phone Upgrade Cycle

 

Source: http://www.ev-analyst.com/home/disrupting-automotive-by-adaptation-of-technology-business-model-3-reasons-why-car-ownership-is-dying-12

http://www.ev-analyst.com/home/disrupting-automotive-through-adaptation-of-technology-business-model-how-to-attract-millennials-22