Google's AdMob attacks Apple's new mobile ad rules

SAN FRANCISCO — Google Inc. thinks its increasingly bitter rival Apple Inc. is trying to muscle it out of the mobile advertising competition on the iPhone, iPad and iPod Touch.

The latest dispute between the Silicon Valley powerhouses centers on a proposed change that could hobble Google's ability to sell and place ads on devices running on Apple's latest mobile operating system, which comes out this month.

Omar Hamoui, the executive in charge of Google's newly acquired mobile ad service, AdMob, attacked Apple's new restrictions in a blog posting Wednesday as a threat to competition. He also warned the change would decrease the ad revenue flowing to the developers of iPhone and iPad applications, a scenario that could drive up the prices that consumers pay for the programs.

Apple didn't immediately return calls seeking comment.

Google paid $750 million to buy AdMob, partly because of AdMob's success selling ads on the iPhone. AdMob, founded in 2006, was so good at it that Apple wanted to buy the company before being trumped by Google last fall.

Apple has since set up own ad service, iAd, fueling Google's suspicion that its rival wants to monopolize the commercial messages shown on the more than 50 million iPhones and iPads that have already been sold.

Under the terms of Apple's latest operating system for those devices, critical information for distributing and analyzing ads won't be shared with services owned by makers of other mobile operating systems.

That threatens to lock out AdMob because Google's Android operating system competes with the iPhone.

That could be a major blow to AdMob, which distributed 30 percent of its ads to iPhones, iPads and iPods in April. Hamoui indicated he still hopes to persuade Apple to scrap the rule change.

On the flip side, Apple's restrictions could be an advantage for smaller, independent ad networks that would still have all the usual data needed to place ads on iPhones and iPads. But that could turn out to be a handicap for mobile advertising services seeking to be bought by a larger company such as Microsoft Corp. that has its own mobile operating system.

It's unclear whether Apple will enforce the restrictions on how the ad data can be shared, said Noah Elkin, an analyst for eMarketer, a research firm.

"I think what we have here is two companies sparring for control of what is potentially a very big advertising market," Elkin said. The U.S. mobile ad market is expected to grow from about $600 million this year to more than $1.5 billion in 2013, according to eMarketer.

Both Google and Apple believe mobile devices eventually will supplant personal computers as the main way people surf the Web. Their dueling ambitions to be shape the direction of the mobile market have transformed the companies from allies to antagonists during the past year.

If Apple's new rules on mobile advertising data were to create a competitive barrier, it would likely attract the attention of antitrust regulators.

After a six-month review, the Federal Trade Commission approved Google's purchase of AdMob largely because the agency believe Apple's entrance into the mobile ad market would foster adequate competition. In its approval of the AdMob deal, the FTC vowed to continue to monitor the mobile ad market for anticompetitive behavior.

The FTC declined to comment Wednesday.

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Iran dismisses sanctions, but tried to avoid them

UNITED NATIONS — The U.S. and its allies scored a long-sought victory Wednesday by pushing through new U.N. sanctions over Iran's nuclear program, punishments Tehran dismissed as "annoying flies, like a used tissue."

The sanctions target Iran's powerful Revolutionary Guard, ballistic missiles and nuclear-related investments. Oil exports, the lifeblood of Iran's economy, are not affected because targeting them would have cost the U.S. essential support from Russia and China.

President Barack Obama said the sanctions are the toughest Iran has ever faced. They required several months of difficult negotiations by the five veto-wielding permanent U.N. Security Council members — the U.S., Russia, China, Britain and France — and non-member Germany. This is the fourth round of sanctions aimed at getting Iran into serious discussions on its nuclear ambitions.

"Actions do have consequences, and today the Iranian government will face some of those consequences," Obama said. He left the door open to diplomacy but said Iran "will find itself more isolated, less prosperous and less secure" unless it meets its obligations under the Nuclear Nonproliferation Treaty.

Iranian President Mahmoud Ahmadinejad, on an official visit in Tajikistan, dismissed the new resolution.

"From right and from left, they adopt sanctions, but for us they are annoying flies, like a used tissue," he said.

Tehran insists its program is peaceful and aimed at producing nuclear energy. The U.S. and its allies say Iran is trying to produce nuclear weapons; they want Iran to suspend uranium enrichment and start negotiations aimed at ensuring that it uses nuclear technology only for peaceful purposes.

The new resolution bans Iran from pursuing "any activity related to ballistic missiles capable of delivering nuclear weapons," bars Iranian investment in activities such as uranium mining and prohibits Iran from buying several categories of heavy weapons including attack helicopters and missiles. Iran, however, already has most of what it would need to make a weapon.

Iran's top nuclear negotiator, Saeed Jalili, warned that "choosing the option of confrontation will bring Iran's resolute response," according to Iran's official news agency. He did not elaborate.

Iran's U.N. Ambassador Mohammad Khazaee accused the United States, Britain and their allies of abusing the Security Council to attack Iran.

"No amount of pressure and mischief will be able to break our nation's determination to pursue and defend its legal and inalienable rights," Khazaee said. "Iran is one of the most powerful and stable countries in the region and never bowed — and will never bow — to the hostile actions and pressures by these few powers and will continue to defend its rights."

U.S. Ambassador Susan Rice dismissed Khazaee's statement as "ridiculous … reprehensible, offensive, and inaccurate" and declared that "these sanctions are as tough as they are smart and precise."

The resolution was approved by a vote of 12-2 with Lebanon abstaining and Brazil and Turkey voting "no." Turkey and Brazil, both non-permanent council members, brokered a fuel-swap agreement with Iran that they offered as an alternative solution to concerns Tehran may be enriching uranium for nuclear weapons.

Lebanon's U.N. Ambassador Nawaf Salam said he abstained because the government failed to "reach a final position." A U.N. diplomat, speaking on condition of anonymity because the government debate was private, said the Cabinet was split, 14-14, on whether to vote no or abstain.

The sanctions put Iran in the unusual position of bashing key allies China and Russia. Both countries voted for the resolution and either could have vetoed it. Ahmadinejad warned Russian leaders last month "to correct themselves, and not let the Iranian nation consider them among its enemies."

In Moscow, the Itar-Tass news agency reported that Ahmadinejad will not take part in the summit of the Shanghai Cooperation Organization in Uzbekistan beginning Thursday. The group was created in 2001 to address religious extremism and border security in Central Asia, and has grown into a bloc aimed at defying U.S. interests in the region.

Ahmadinejad is scheduled to tour the World Expo in Shanghai this week, but is not expected to hold talks with senior Chinese leaders.

Iran holds more leverage over China, which needs Iran's oil and gas to feed its growing energy appetite, than it does over Russia, which has long provided important technology to Iran including building the country's first nuclear reactor. The facility is expected to begin electricity production this summer.

The Security Council imposed limited sanctions in December 2006 and has been ratcheting them up in hopes of pressuring Iran to suspend enrichment and start negotiations on its nuclear program. Iran has repeatedly defied the demand and has stepped up its activities, enriching uranium to 20 percent and announcing plans to build new nuclear facilities.

The new resolution imposes sanctions on 40 Iranian companies and organizations — 15 linked to Iran's Revolutionary Guard, 22 involved in nuclear or ballistic missile activities and three linked to the Islamic Republic of Iran Shipping Lines. That more than doubles the 35 entities that had been subject to an asset freeze.

The sanctions add one individual to the previous list of 40 Iranians subject to an asset freeze — Javad Rahiqi, who heads the Atomic Energy Organization of Iran's Esfahan Nuclear Technology Center. All 41 individuals will also now be subject to a travel ban.

Rahiqi declined to comment when contacted by The Associated Press.

The resolution also calls on all countries to cooperate in cargo inspections — which must receive the consent of the ship's flag state — if there are "reasonable grounds" to believe the cargo could contribute to the Iranian nuclear program.

On the financial side, it calls on — but does not require — countries to block financial transactions, including insurance and reinsurance, and to ban the licensing of Iranian banks if they have information that provides "reasonable grounds" to believe these activities could contribute to Iranian nuclear activities.

U.S. Defense Secretary Robert Gates said Tuesday that new sanctions would pave the way for tougher additional measures by the U.S. and its allies. France's U.N. Ambassador Gerard Araud said after Wednesday's vote that European Union foreign ministers will be meeting on Monday and France would like "a tough translation of the resolution," but it's up to the 27 countries to decide on additional sanctions.

Israel's ambassador to the United States, Michael Oren, said the resolution "can serve as a viable platform" for nations to launch sanctions such as restrictions on Iran's ability to import gasoline. "They have a lot of oil, but not a lot of refined oil or the ability to export oil abroad," he said.

The U.N. resolution was approved despite an Iranian diplomatic offensive launched in April. Jalili visited Beijing that month in the wake of U.S. reports saying China had dropped its opposition to possible new U.N. measures against Iran.

Iran also approached several non-permanent Security Council members, including Bosnia, Brazil, Turkey and Uganda, in hopes of averting new sanctions. Inviting diplomats from all 15 members of the Security Council to a two-hour dinner in New York in May was seen as Iran's high-profile attempt to head off additional penalties.

China's U.N. Ambassador Li Baodong said after the vote that the sanctions were aimed at curbing nonproliferation and would not affect "the normal life of the Iranian people" nor deter normal trade activity, a view echoed by Russia's U.N. envoy Vitaly Churkin.

The five permanent council members and Germany, in a statement after the vote, reaffirmed their "determination and commitment to seek an early negotiated solution to the Iranian nuclear issue … which would restore international confidence in the peaceful nature of Iran's nuclear program." It welcomed and commended "all diplomatic efforts in this regard, especially those recently made by Brazil and Turkey."

Brazilian President Luiz Inacio Lula da Silva said the new sanctions were "a mistake" implemented "just for spite." According to the state-run Agencia Brasil news agency, Silva said the resolution's supporters "threw out an historic opportunity to peacefully negotiate the Iranian nuclear program" — the fuel-swap agreement his country and Turkey had championed.

Under the proposal, Iran would swap some of its enriched uranium for fuel for a research reactor in Tehran. The U.S., Russia and France have said that — unlike the original plan drawn up eight months ago — the proposal would leave Iran with enough material to make a nuclear weapon.

The three countries sent a letter to the International Atomic Energy Agency seeking clarifications from Tehran, and several council ambassadors said they would still like to see the swap go ahead. Lebanon's Salam called it "a gateway for confidence building measures."

"We believe that the sanctions resolution is a painful failure of diplomatic efforts," Salam said. "We refuse to give up. We call on all states … to reinitiate and intensify diplomatic efforts."

The new sanctions should bring little direct political fallout for Ahmadinejad. The country has been deeply polarized since last June's disputed presidential election — which the opposition claims was rigged by vote fraud — and Ahmadinejad's backers are likely to use the sanctions as a rallying cry.

In Venezuela, President Hugo Chavez condemned the measures against Iran, his close ally.

"Why won't they sanction Israel? You realize the cynicism of the Yankee empire and its allies in the world," Chavez said in a televised speech Wednesday night. "Israel massacres, kills, doesn't comply with United Nations resolutions … and the United Nations acts as if nothing had happened."

Associated Press Writers George Jahn in Vienna, Matthew Lee in Quito, Ecuador, Peter James Spielmann at the United Nations, Beth Fouhy in New York City, Mark Lavie in Jerusalem and Olga Tutubalina in Dushanbe, Tajikistan contributed to this report.

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Trade group: Chip sales to jump 28 pct this year

SAN JOSE, Calif. — Revenue at the world's semiconductor companies will climb 28.4 percent to $290.5 billion this year, an industry trade group projected Thursday.

That growth will taper off to an increase of 6.3 percent in 2011 and 2.9 percent in 2012, the Semiconductor Industry Association said.

Chip sales have been rising steadily for months after the recession sapped demand and forced companies that buy semiconductors to slash their inventories.

SIA reported a 58 percent jump in chip sales for the first quarter of 2010 compared with the year-earlier quarter, and a 50.4 percent rise in April.

The recovery comes after a 9 percent drop in chip revenue last year to $226.3 billion.

"Healthy demand in all major product sectors and in all geographic markets drove sales of semiconductors to record levels in the first four months of 2010," SIA President George Scalise said in a statement Thursday.

He said SIA's forecast for the year is based on projected worldwide economic growth of 4.6 percent this year and 4.4 percent in 2011.

Emerging economies such as China and India will help lead the way as demand for information technology in those markets helps boost demand for chips, Scalise said.

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New UN sanctions on Iran for nuclear program

A resolution approved Wednesday by the U.N. Security Council by a vote of 12-2 with one abstention imposes a fourth round of sanctions against Iran over its suspect nuclear program. Here are the key points in the 18-page text:

NUCLEAR ISSUES:

— Reiterates demand that Iran suspend enrichment and comply with all requirements of the International Atomic Energy Agency including its additional protocol which allows unannounced inspections of nuclear facilities.

— Calls on Iran to ratify the Comprehensive Nuclear Test Ban Treaty "at an early date."

— Bans Iran from any foreign investment in uranium mining, enrichment or reprocessing, production or use of nuclear materials and technology, heavy-water activities, and technology related to ballistic missiles capable of delivering nuclear weapons.

MISSILES AND ARMS PROLIFERATION:

— Bans countries from selling eight categories of heavy weapons to Iran: battle tanks, armored combat vehicles, large caliber artillery systems, combat aircraft, attack helicopters, warships, missiles and missile systems.

— Bans all countries from supplying technical training, financing or other services for these weapons.

— Bans Iran from any activity related to ballistic missiles capable of delivering nuclear weapons, including launching such a missile.

— Bans all countries from supplying technology or technical assistance to Iran for such activities.

INDIVIDUAL AND COMPANY SANCTIONS:

— Adds one individual and 40 companies and other organizations to a list of those subject to an asset freeze including 22 entities involved in nuclear or ballistic missile activities, 15 controlled or acting on behalf of Iran's powerful Revolutionary Guard Corps, and three linked to the Islamic Republic of Iran Shipping Lines.

— Orders all countries to ban the 41 individuals now on the list from traveling to or through their territory.

ILLEGAL SHIPMENTS:

— Calls on countries to cooperate in inspections — which must receive the consent of the ship's flag state — if the vessel is suspected of carrying prohibited cargo.

— Bans the supply of fuel or services to Iranian owned or contracted vessels suspected of carrying prohibited cargo.

FINANCIAL AND BANKING MEASURES:

— Calls on countries to block financial transactions, including insurance and reinsurance, if there are "reasonable grounds" to believe these activities could contribute to Iranian nuclear activities.

— Orders all countries to require their nationals and companies operating in their territory "to exercise vigilance when doing business with entities incorporated in Iran or subject to Iran's jurisdiction."

— Calls on countries to ban the licensing of Iranian banks, the opening of financial institutions, or the establishment of new joint ventures if they have information that provides "reasonable grounds" to believe these activities could contribute to Iranian nuclear activities.

SANCTIONS ENFORCEMENT:

— Requests Secretary-General Ban Ki-moon to establish a committee of experts to monitor implementation of all sanctions against Iran and calls for a first report 90 days after its appointment.

ENGAGEMENT:

— Stresses the willingness of China, France, Germany, Russia, Britain and the United States "to further enhance diplomatic efforts to promote dialogue and consultations … without preconditions" with Iran.

— Emphasizes the importance of political and diplomatic efforts to find a negotiated solution guaranteeing that Iran's nuclear program is exclusively for peaceful purposes.

— Notes in this regard the efforts of Turkey and Brazil toward agreement with Iran on a fuel-swap for the Tehran Research Reactor "that could serve as a confidence-building measure."

— Emphasizes in the context of these efforts "the importance of Iran addressing the core issues related to its nuclear program."

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Kids labeled 'generation next' before they grow up

CHICAGO — They aren't even out of grade school. But already, people are trying to name the youngest up-and-coming generation, and figure out who they might be and how they might be different from their predecessors.

At a loss for something more original, many call them Generation Z, because they follow Generations X and Y.

They've also been referred to as Generation Net or "iGen," since they've never known a world without the Internet.

That's the one point most everyone can agree on — that they are the tech-savviest generation of all time, so much so that even toddlers can maneuver their way through YouTube and some first-graders are able to put together a PowerPoint presentation for class.

But beyond that, who are they, really?

Most people agree it's just too early to know for sure. But that hasn't stopped marketers from trying to figure out this young crowd of consumers. Or employers from attempting to prepare for them in the workplace.

Parents, too — many of them Gen Xers — are weighing in, saying they are raising a different brand of kid than baby boomers did.

"I would like to think that ideally, and this might be a bit naive, Gen Xers are a bit more freethinking and not necessarily as compelled to keep up with the Joneses," says Kris Sonnenberg, a teacher in Chicago and 38-year-old mother of three children, ages 8, 12 and 17.

Many parents also think the recession will play a role in shaping who their kids are, and perhaps make them less "entitled," a label that — fair or not — has been slapped frequently on Generation Y, also known as the "millennials."

"We're not afraid to say money's tight, so I feel like our kids are going to have that sense long-term," says Andrew Egbert, a 41-year-old dad who works in manufacturing in Greensboro, N.C. He has a son in fifth grade and a daughter who's a first-grader.

OK, so, let's take a look at the picture that's emerging of Gen Z, for what it's worth. They're young — roughly age 12 or younger.

Generational expert Neil Howe says determining who these youngsters are still is very much a work in progress.

"But there are hints from history," he says.

Howe, who coined the term "millennials," says 2008 may turn out to be one year with a big influence on this generation, due to both the recession and the election of the nation's first black president.

He is calling them the "homelanders" because they are growing up in a time of "greater public urgency and emergency, both at home and around the world."

For that reason, he speculates they could be a new version of the so-called Silent Generation, the group that grew up in the Depression era, who saw the country through World War II and who birthed the baby boomers.

That elder generation was pegged as hardworking and anything but entitled.

Janet Reid, who also has spent time looking at this latest generation, thinks that's a pretty fair appraisal.

"It won't be taken for granted that prosperity is guaranteed," says Reid, a managing partner at Global Novations, a firm that helps corporations develop and attract workers and understand generational differences.

Because they're so hooked into screens of all kinds at a such a young age, she sees Gen Z as more conscious of world events. "They're not just out playing hopscotch," she says.

She also thinks this generation will take characteristics already affiliated with Gen Y to a new level — be that multitasking or a comfort level with different races, ethnicities and cultures.

Seven-year-old Ryan Cook's parents have noticed many of these traits in him.

Asked what a recession is, he's able to tell you that it has to do with the economy and the fact that his parents can't always buy him the things he wants, like video games. "But I think that's fair," he says.

He can tell you that President Barack Obama is the nation's first black president, but — as one whose elementary classroom in suburban Chicago is much more diverse than his parents' — that doesn't seem to phase him much.

"Well, the president is the president," he says nonchalantly. "They don't really change much, except for different speeches."

Like a lot of kids his age, he gets frustrated when he has to sit through TV commercials. He uses his dad's laptop by himself with ease. And though he doesn't have a cell phone, he wants one (partly because his 12-year-old brother has one).

That fits with the notion that, recession or no recession, this generation has a big expectation when it comes to technological gadgets, whether that be cell phones, laptops or the latest version of the iPod or other music players.

And in many instances, their parents are getting them those gadgets, says Nicole Williams, a 39-year-old mom of three who's also a fifth-grade teacher in Seattle.

"They have quick fingers, good muscle strength in those fingers," Williams says, laughing as she refers to the many technological devices her students use in and outside class.

These devices are so coveted — and a sign of status — that theft can be a problem.

That's not surprising to Colin Gounden, a research specialist who thinks access to technology will play a big role in determining which Gen Zers thrive, and which don't.

"There is a segmentation of haves and have-nots that is very global. If you are in Mississippi or Bangalore, if you don't have Internet, your experience is quite parallel," says Gounden, global head of research for Integreon Inc., whose subsidiary Grail Research has compiled a report on Gen Z.

Among other things, he also thinks this generation is more likely to be debt-ridden, partly because getting a college degree will be as important for them as a high school diploma was for their grandparents and great-grandparents.

Gounden is among those who question whether this recession will really impact this generation the way some think it will.

Another skeptic is Jean Twenge, a psychology professor at San Diego State University who's written books and studies that examine entitlement and narcissism in young people.

Twenge cites a recent poll of young people from the 2010 Cassandra Report, compiled by a market research firm known as the Intelligence Group, which found that 81 percent of 7- to 13-year-olds expect they will have their "15 minutes of fame."

"Every arrow points in the direction of continued high expectations and optimism," Twenge says. "Things might be bad sometimes, but they think THEY will make it."

Online:

Grail Research Gen Z report: www.grailresearch.com/gen(underscore)z

Martha Irvine is an AP national writer. She can be reached at mirvine(at)ap.org

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Solar cell inventor wins technology prize

HELSINKI — Michael Graetzel of Switzerland has won the international Millennium Technology Prize for inventing low-cost solar cells used in renewable energy.

The Technology Academy of Finland on Wednesday awarded the German-born chemist the euro800,000 ($960,000) prize for his innovation, which it says "provides a more affordable way of harnessing solar energy" and led to the development of electricity-generating windows and mobile solar panels.

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Samsung to invest $3.6 billion to expand Texas chip-making facility, to hire 500 more workers

Samsung invests $3.6 billion in Texas chip plant

AUSTIN, Texas — Samsung Electronics Co. said Wednesday that due to projected heavy demand for its advanced logic chips the South Korean company will invest $3.6 billion to expand capacity at its plant in Austin, Texas, and hire 500 more workers there by 2011.

Samsung will raise its employee count at the facility to 1,500 from 1,000 by next year, boosting annual payroll to about $105 million. The expansion, which builds out the second phase of its 2.3 million-square-foot complex, will bring its total investment in the Austin plant to more than $9 billion.

Most of the new employees with be engineers and technicians. In addition, the company said almost 3,000 construction workers and equipment vendors will move in and set up the machinery. The plant will build advanced logic devices for Samsung's system large-scale integration business and continue to make NAND flash memory chips, which are used in consumer electronics such as digital cameras, thumb drives and MP3 players.

"Forty-five nanometer and below advanced logic applications are in high demand and respective markets are expected to show substantial growth in the coming years," said Stephen Woo, executive vice president and general manager of Samsung's System LSI division.

Samsung expects the facility will be operational by the second quarter of next year.

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Senate committee approves auto safety upgrades

WASHINGTON — A Senate committee Wednesday approved a bill that would require automakers to meet new safety standards, impose stiff penalties for companies that fail to quickly report defects and double funding for the government agency overseeing car safety.

The Senate Commerce Committee plan is part of a move by lawmakers to tighten the nation's auto safety laws following Toyota's massive recalls.

"This is a critical public safety bill that will affect the lives of millions of Americans on the road," Sen. Jay Rockefeller, D-W.Va., the committee's chairman, said.

Congress hopes to approve the safety legislation by the July 4 holiday recess. It represents the most significant reforms to auto safety rules since the Bridgestone/Firestone Inc. tire recalls of a decade ago.

A House committee approved similar legislation last month.

The Senate plan would require automakers to meet new standards related to brake override systems, vehicle black boxes and auto electronics in the aftermath of Toyota Motor Corp.'s recall of more than 8 million vehicles around the globe.

Under the Senate bill, companies could face penalties of up to $300 million for a slow response to a recall. Toyota paid a record $16.4 million fine for its handling of a recall but critics said the penalty was not severe enough.

Safety advocates also have questioned the ability of the National Highway Traffic Safety Administration to protect consumers from complicated safety defects. To address those concerns, NHTSA could see its annual budget grow from $140 million to $280 million in 2013.

Separately, the Senate committee approved the creation of a $120 million grant program for states that enact laws to bar texting and driving and the use of handheld cell phones behind the wheel.

To qualify, states would need to pass new laws or amend existing ones that would prohibit texting and driving, allow law enforcement officers to have the authority to pull over motorists who use their phones behind the wheel and create minimum fines.

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