Lenovo Set to Close $2.1B IBM Server Deal

Lenovo's acquisition of IBM's x86 server business is expected to close on Wednesday, for a price below the $2.3 billion announced early this year.

The purchase will be complete on Oct. 1 for $2.1 billion, based on a change to the valuation of inventory and deferred revenue liability, a Lenovo spokesman confirmed to PCMag.

As announced in January, the computer maker will take control of IBM's System X business, BladeCenter and Flex System blade servers and switches, x96-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade networking, and maintenance operations.

IBM, however, will retain its System z mainframes, Power Systems, Storage Systems, Power-based Flex servers, and PureApplication and PureData appliances.

"With the close of the x86 acquisition, Lenovo will add a world-class business that extends our capabilities in enterprise hardware and services, immediately making us a strong number three in the global server market," CEO Yang Yuanqing said in a statement.

The tech giants have a long-standing relationship, bolstered by Lenovo's 2005 acquisition of IBM's PC client business, which included the ThinkPad computer lineup. They will continue to work together, as IBM keeps a hand in the development of its Windows and Linux software portfolio for the x86 platform.

IBM, meanwhile, is making a renewed push to promote its own Power processor architecture by opening it to licensing and forming the OpenPower Consortium. IBM also recently announced the licensing of its ARM architecture for the development of customized networking equipment.

About 7,500 IBM employees around the globe are expected to join Lenovo.

"Lenovo has big plans for the enterprise market," said Gerry Smith, executive vice president of Lenovo Group. "Over time, we will compete vigorously across every sector, using our manufacturing scale and operational excellence to repeat the success we have had with PCs."

Lenovo is also awaiting the close of its deal to acquire Google's Motorola Mobility.

For more, check out PCMag's slideshow above featuring eight acquisitions that changed the face of computing—including Lenovo's purchase of IBM's PC business.

China's Xiaomi Moves In on Samsung, Apple

The "star performer" of the smartphone market this summer wasn't Apple or Samsung, it was a company you may not have even heard of—China's Xiaomi.

According to new data from Strategy Analytics and IDC, Xiaomi became the world's third largest smartphone vendor for the first time ever in the third quarter of 2014, behind only Samsung and Apple. Strategy Analytics said Xiaomi accounted for a record 6 percent of the 320.4 million smartphones shipped from July until September.

"Xiaomi's Android smartphone models are wildly popular in the Chinese market," Neil Mawston, executive director at Strategy Analytics, said in a statement. "Xiaomi's next step is to target the international market in Asia and Europe, where it may face stronger headwinds of low brand awareness and technology-patent challenges next year."

Strategy Anaytcis smartphone Q3 2014As part of that push into other markets, Xiaomi said recently that it is moving its Beijing-based data centers to Amazon AWS data centers in California and Singapore. The move, according to Xiaomi (and former Google) exec Hugo Barra "better equips us to maintain high privacy standards and comply with local data protection regulations" - something that's not always possible in China.

"Parts of this migration will be completed by the end of October, and all of it will be completed by the end of 2014," Barra said in a separate post that addressed security concerns in India. "In 2015, we plan to launch a local data center in India to serve the needs of (and store data for) our Indian users."

Samsung maintained its No. 1 spot, but saw its marketshare drop to 25 percent from 35 percent a year ago. Apple's share also dropped slightly to 12 percent.

"Samsung continues to face tough competition from Apple at the higher-end of the smartphone market, from Xiaomi and Huawei in the middle-tiers, and from Lenovo and others at the entry-level," Mawston said. Meanwhile, he added, "Apple's iPhone growth is slowing worldwide because of its limited presence in the fast-growing entry-level segment."

IDC smartphone Q3 2014IDC corroborated Strategy Anaytics's assessment, noting that new releases and an increased emphasis on emerging markets resulted in 25 percent growth compared to the same quarter last year.

"Despite rumors of a slowing market, smartphone shipments continue to see record-setting volumes," Ryan Reith, program director with IDC's Worldwide Quarterly Mobile Phone Tracker, said in a statement. "We've finally reached a point where most developed markets are experiencing single-digit growth while emerging markets are still growing at more than 30 percent collectively."

For more, check out the charts from Strategy Analytics and IDC below. Also see Hands On With the Xiaomi Mi3 Smartphone.

DDoS Attack Briefly Knocks Ello Offline

llo's sudden rise to fame makes it the perfect target for hackers, who launched an apparent distributed denial of service (DDoS) attack on the new social network over the weekend.

According to reports, users were locked out of the site for about 45 minutes on Sunday as the Ello team worked to patch the problem.

A homepage message told visitors that "The site is currently unavailable while we conduct some necessary maintenance. Follow along for any updates on our status page."

But the status page told a different story, telling users "we are undergoing a potential denial of service attack."

Ello reopened by 4:50 p.m. Eastern after blocking the IP addresses responsible for the attack, according to The Next Web.

Ello did not immediately respond to PCMag's request for comment.

The startup network exploded last week, reportedly thanks in part to Facebook's "real name" push that forced several San Francisco-based drag queens to stop using their stage names in their profiles.

A "simple, beautiful, and ad-free" service, Ello does not have a "real name" policy; instead it preaches the idea that a social network "can be a tool for empowerment … not a tool to deceive, coerce and manipulate."

Currently in beta, the invitation-only service is welcoming new users in small groups while it continues to roll out new features, including better security options to combat concerns from the public.

But the swarm of new Ello users may get a surprise when the free service begins implementing new fees. With no money from advertising and about $435,000 in funding from Vermont-based FreshTracks Capital, it will likely turn to a fee-based system in the future to stay afloat.

Reports tip additional charges for extra features; managing two separate Ello accounts, for instance, could set a user back $2. It remains to be seen how folks will react to a pay-for-service network—quite contrary to popular sites like Facebook, Twitter, and Instagram.

Wrist-Based Drone Can Take Off, Snap Selfies

What happens when you combine the latest in technological advancements with the most popular tech-based fad? You get a wearable drone.

One of the 10 finalists in Intel's Make It Wearable (MIW) Challenge, the Nixie is a flyable wrist-worn camera, perfect for the selfie-taking adventurer.

From the minds of Christoph Kohstall, Jelena Jovanovic, and Michael Niedermayr, the device was envisioned as a flying pair of glasses, but has since developed into a wristband that unfolds into a remote-controlled quadcopter.

"With traditional cameras, shooters have to interrupt the moment to take pictures, and the controls require manual manipulations," the Intel Creators Project blog said. "Nixie puts you front and center in your photos and videos—without requiring your hands, or your attention."

Still just a prototype, the Nixie will include preset modes to fit all on-the-go situations, from the classic selfie to a panorama image, or even a continuous movie.

"You should be able, with a gesture, to tell the quadcopter to unfold, and then it's going to take off from your wrist. It knows where you are, it turns around, it takes a picture of you, it comes back, you can catch it from the air, and put it back on your wrist," founder Kohstall explained in a video (below).

Within its capacity as an Intel MIW Challenge entry, the Nixie, of course, utilizes Intel's Edison—a functioning, Quark-powered computer with wireless capabilities packed into a chip as slim and small as an SD card.

"Nixie takes the picture that you wish you had always had, but couldn't, because you didn't want to stop the action," project manager Jovanoic said.

And it doesn't look like this.

The selfie-taking wearable drone is in the running alongside nine other futuristic inventions that cover sports, healthcare, robotics, and existing wearable technology. The winning team will be announced at the Make It Wearable Finale Event on Nov. 3.

Learn more about the Intel Make It Wearable Challenge in the video below.

New GoPro Lineup Appeals to Daredevils and Daytrippers

In the market for an action camera? GoPro has some new options ranging from $500 to just $129.

The company on Monday unveiled the Hero4, its highest-performance camera line ever. The Hero4 comes in two editions: the cream-of-the-crop Black version for $500 and a $400 Silver model, both of which will be available Oct. 5.

The Black edition delivers two times the performance of its predecessor, the two year-old Hero3. It can capture "cinema quality" 4K video at 30 frames per second, 2.7K video at 50fps, and 1080p video at 120fps, "virtually eliminating rolling shutter in most scenarios while allowing for time-bending slow motion effects." The Black Hero4 also features a new audio system that captures high-fidelity sound with twice the dynamic range of previous models.

Other enhancements include improved image quality, low-light performance, highlight moment tagging, and an improved user interface that offers easier access to key features and controls.

Hero4 silverThe silver model (right) features the same image quality as the black version, minus some of the higher performance video capture modes such as 4K30, 2.7K50, and 1080p120. It has a new built-in touch display for easier self-capture.

Meanwhile, if both of those models are a little too expensive, the company also on Monday debuted the Hero for $129. Described as the "perfect entry-level GoPro," the Hero features a rugged, waterproof housing and is capable of capturing 1080p video at 30fps and 720p video at 60fps.

"For the past 12 years, our passion has been to make it easy for people to self-capture jaw dropping, professional quality footage of themselves engaged in their favorite activities," GoPro founder and CEO, Nicholas Woodman, said in a statement. "That passion led us to embark on our most ambitious design and engineering effort ever, and the result is nothing short of the ultimate GoPro — the Hero4 Black. We can't wait to see what the world captures with it."

For more on the Hero4, check out the video below. Also see PCMag's full review of the Hero3 White Edition and 15 Crazy GoPro Stunt Videos You Must Watch.

PayPal Slams Apple Pay Security

Unveiled alongside the iPhone 6 and iPhone 6 Plus on Sept. 9, Apple Pay will let you purchase items at participating stores and restaurants by simply waving your smartphone in front of the contactless payment station. It will launch in the U.S. in October as a free update to iOS 8, which drops today.

When you add your card number to the PassBook app to set up Apple Pay, your iPhone creates a unique Device Account Number for that card, encrypts it, and stores it on a dedicated chip in your device — not on Apple's servers. Then, when you make a purchase, the Device Account Number, along with a transaction-specific security code is used to process the payment — so your actual credit or debit card number is never shared.

If your phone is stolen, you can use Find My iPhone to suspend all payments.

Security experts are largely optimistic about Apple's new system, but it's important to note that any payment solution, including PayPal and Apple Pay, could be susceptible to hacks.

For more, check out our video below and Why You Should Ditch Your Wallet for Apple Pay.

Apple might be gushing over the security of its new mobile payment system, but not everyone is convinced. In fact, Apple Pay already has one major hater: mobile payment rival PayPal.

The online payment firm on Monday took out a full-page ad (pictured below) in The New York Times, San Francisco Chronicle, and USA Today questioning the security of Apple's new contactless payment system. The ad suggests that Apple Pay is only as safe as selfies in iCloud, alluding to a recent security breach that lead to the leak of celebrity nudes.

"We the people want our money safer than our selifes," the ad reads. "PayPal protecting the people economy." The ad goes on to encourage readers to "download the PayPal app now and securely buy almost anything with just one touch."

Report: iPhone 6 Demand Overwhelms Foxconn

Another iPhone launch, another round of reports about overseas suppliers overwhelmed by orders.

According to The Wall Street Journal, Foxconn is operating 100 production lines "around the clock," churching out 140,000 phablets and 400,000 smartphones every day, but it's still not enough to satisfy pre-orders.

The Journal said the Zhengzhou, China-based factory has more than 200,000 employees dedicated to making iPhone 6 and 6 Plus handsets and their key components. But with a record 4 million pre-orders in the first 24 hours, Foxconn is reportedly struggling to craft the devices fast enough.

These type of reports are nothing new. In 2012, Foxconn acknowledged iPhone 5 production delays. And yet, everyone eventually got their phones.

A July report from the Journal said that Apple asked its suppliers to manufacture between 70 and 80 million of the 4.7-inch and 5.5-inch handsets by Dec. 30.

The iPhone 6 and 6 Plus go on sale Friday in the U.S., Australia, Canada, France, Germany, Hong Kong, Japan, Puerto Rico, Singapore, and the U.K. A week later, they'll hit 20 more countries.

But only the fastest to successfully pre-order their phones will receive the gadgets this week; others can expect a package later this month or in October, particularly the iPhone 6 Plus. Delivery estimates for iPhone 6 are now at 7-10 days, while iPhone 6 Plus is at 3 to 4 weeks.

A handful devices will be available to walk-in customers at Apple retail stores this Friday at 8 a.m., but don't expect supplies to last. Also check your local AT&T, Sprint, T-Mobile, and Verizon brick-and-mortar locations.

Apple did not immediately respond to PCMag's request for comment.

For more, see PCMag's Hands On With the iPhone 6, 6 Plus and the slideshow above. Also check out our side-by-side comparison iPhone 6 vs. iPhone 6 Plus: Big or Bigger?