Apple won't blindly pursue market share, Chinese paper reports

SAN FRANCISCO/BEIJING (Reuters) - In a revised version of an interview published Thursday in a Chinese newspaper, Apple Inc marketing chief Phil Schiller said the company would focus on making "the best products" for customers and "never blindly pursue market share".

On Thursday, the Shanghai Evening News had originally cited Schiller as saying that Apple would not develop a cheaper smartphone for the sake of expanding its market share.

That appeared to undermine other recent media reports indicating that Apple was working on a low-end smartphone, which would represent a significant shift in strategy for a company that has always focused on premium products.

But in a new version of the story published after the original, the Shanghai Evening News removed all references to cheaper smartphones, except for a mention of rumours of a "cheaper, low-end product".

It also amended its original headline from "Apple will not push a cheaper smartphone for the sake of market share", to "Apple wants to provide the best products, will not blindly pursue market share".

Apple confirmed the interview had taken place and that it had contacted the Chinese newspaper about amending its original article, but had no further comment and declined to provide a transcript of the interview.

A reporter at the Shanghai Evening News who identified himself as Huang Yinlong, whose byline appeared on the stories, said the paper had made some changes, as Schiller's remarks may not have been presented as clearly as possible.

As well as deleting references to cheap smartphones, paraphrased statements attributed to Schiller in the original version were replaced with direct quotations.

Asked if the paper had made the changes at Apple's request, Huang said that the paper had made the decision on its own.

"We deliberated about it, and wanted to reflect (Schiller's) meaning in the interview more accurately, so we made some adjustments", said Huang, adding the interview was conducted in Beijing on Tuesday.

The original story had quoted Schiller as saying that developing a cheaper smartphone to try and replace feature phones was not a direction in which the company wanted to head.

That comment was amended in the new version of the story, which now cites Schiller as saying that while some manufacturers are moving toward such cheaper smartphones, "Apple has always focused on providing the best products for its consumers, we've never blindly chased market share."

An operator at the Shanghai Evening News said the paper did not have a spokesperson. Queries for comment were referred to Editor-in-Chief Niu Yefang, whose phone went unanswered.

A spokeswoman for Apple in China could not be reached immediately.

Apple rarely addresses rumors about upcoming products, which often spur intense speculation. Earlier this week, the Wall Street Journal cited anonymous sources as saying Apple could release a cheaper iPhone as early as this year.

(Reporting by Edwin Chan and Wan Xu in San Francisco, and Terril Yue Jones in Beijing; Editing by Bernadette Baum and Jeremy Laurence)

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Armstrong to admit doping in Oprah interview

AUSTIN, Texas (AP) — Lance Armstrong will make a limited confession to doping during his televised interview with Oprah Winfrey next week, according to a person with knowledge of the situation.

Armstrong, who has long denied doping, will also offer an apology during the interview scheduled to be taped Monday at his home in Austin, according to the person who spoke on condition of anonymity because there was no authorization to speak publicly on the matter.

While not directly saying he would confess or apologize, Armstrong sent a text message to The Associated Press early Saturday that said: "I told her (Winfrey) to go wherever she wants and I'll answer the questions directly, honestly and candidly. That's all I can say."

The 41-year-old Armstrong, who vehemently denied doping for years, has not spoken publicly about the U.S. Anti-Doping Agency report last year that cast him as the leader of a sophisticated and brazen doping program on his U.S. Postal Service teams that included use of steroids, blood boosters and illegal blood transfusions.

The USADA report led to Armstrong being stripped of his seven Tour de France titles and given a lifetime ban from the sport.

Several outlets had reported that Armstrong was considering a confession. The interview will be broadcast Thursday on the Oprah Winfrey Network and oprah.com.

A confession would come at a time when Armstrong is still facing some legal troubles.

Armstrong faces a federal whistle-blower lawsuit filed by former teammate Floyd Landis accusing him of defrauding the U.S. Postal Service, but the U.S. Department of Justice has yet to announce if it will join the case. The British newspaper The Sunday Times is suing Armstrong to recover about $500,000 it paid him to settle a libel lawsuit.

A Dallas-based promotions company has threatened to sue Armstrong to recover more than $7.5 million it paid him as a bonus for winning the Tour de France.

But potential perjury charges stemming from his sworn testimony denying doping in a 2005 arbitration fight over the bonus payments have passed the statute of limitations.

Armstrong lost most of his personal sponsorship — worth tens of millions of dollars — after USADA issued its report and he left the board of the Livestrong cancer-fighting charity he founded in 1997. He is still said to be worth an estimated $100 million.

Livestrong might be one reason to issue an apology or make a confession. The charity supports cancer patients and still faces an image problem because of its association with its famous founder.

Armstrong could also be hoping a confession would allow him to return to competition in elite triathlon or running events, but World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what new information Armstrong provides and his level of cooperation.

Armstrong met with USADA officials recently to explore a "pathway to redemption," according to a report by "60 Minutes Sports" aired Wednesday on Showtime.

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Simon Rattle to quit Berlin Philharmonic in 2018

BERLIN (Reuters) – Renowned British conductor Simon Rattle said on Thursday he would step down as head of the prestigious Berlin Philharmonic in 2018 when his current contract with the orchestra expires and before he turns 64.

“In 2018 I will be nearly 64 years old,” the 57-year-old said in a statement on the Philharmonic’s website. “As a Liverpool boy, it is impossible not to think of the Beatles’ question ‘Will you still need me… when I’m 64?’” he joked.

“This was not an easy decision. I love this orchestra and therefore wanted to tell them my decision as early as possible.”

Rattle, known for his youthful energy, his readiness to take risks and his mop of curly grey hair, took over the Berlin Philharmonic, one of the world’s leading orchestras, in 2002.

The first Briton to hold a post previously associated with such giants of German music as Herbert von Karajan, Rattle has sometimes upset music traditionalists in his adopted land with his love of experimentation and his unorthodox approach.

Rattle has described his sometimes turbulent relationship with the Berlin Philharmonic as “a love affair”.

Critics have accused him of lacking appropriate German gravitas in such a high-profile cultural role and of caring more about the public image of the orchestra than about the music.

But his many supporters have welcomed efforts to reach out to new audiences as well as his success in forging relations with other orchestras around the world, including Venezuela’s Simon Bolivar Youth Orchestra.

“With his outstanding musicality and creativity he has filled new listeners with enthusiasm for the orchestra every day and has shaped the national and international perception of the Berliner Philharmonic as a vital cultural ambassador for Berlin,” said Martin Hoffmann, the orchestra’s general manager.

Rattle, who studied at the Royal Academy of Music in London, worked as conductor of the Birmingham Symphony Orchestra in central England for 18 years before moving to Berlin.

(Reporting by Gareth Jones; editing by Mike Collett-White)

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Flu season puts businesses and employees in a bind

WASHINGTON (AP) — Nearly half the 70 employees at a Ford dealership in Clarksville, Ind., have been out sick at some point in the past month. It didn't have to be that way, the boss says.

"If people had stayed home in the first place, a lot of times that spread wouldn't have happened," says Marty Book, a vice president at Carriage Ford. "But people really want to get out and do their jobs, and sometimes that's a detriment."

The flu season that has struck early and hard across the U.S. is putting businesses and employees alike in a bind. In this shaky economy, many Americans are reluctant to call in sick, something that can backfire for their employers.

Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said Friday. The only states without widespread flu were California, Mississippi and Hawaii. And the main strain of the virus circulating tends to make people sicker than usual.

Blake Fleetwood, president of Cook Travel in New York, says his agency is operating with less than 40 percent of its staff of 35 because of the flu and other ailments.

"The people here are working longer hours and it puts a lot of strain on everyone," Fleetwood says. "You don't know whether to ask people with the flu to come in or not." He says the flu is also taking its toll on business as customers cancel their travel plans: "People are getting the flu and they're reduced to a shriveling little mess and don't feel like going anywhere."

Many workers go to the office even when they're sick because they are worried about losing their jobs, says John Challenger, CEO of Challenger, Gray & Christmas, an employer consulting firm. Other employees report for work out of financial necessity, since roughly 40 percent of U.S. workers don't get paid if they are out sick. Some simply have a strong work ethic and feel obligated to show up.

Flu season typically costs employers $10.4 billion for hospitalization and doctor's office visits, according to the CDC. That does not include the costs of lost productivity from absences.

At Carriage Ford, Book says the company plans to make flu shots mandatory for all employees.

Linda Doyle, CEO of the Northcrest Community retirement home in Ames, Iowa, says the company took that step this year for its 120 employees, providing the shots at no cost. It is also supplying face masks for all staff.

And no one is expected to come into work if sick, she says.

So far, the company hasn't seen an outbreak of flu cases.

"You keep your fingers crossed and hope it continues this way," Doyle says. "You see the news and it's frightening. We just want to make sure that we're doing everything possible to keep everyone healthy. Cleanliness is really the key to it. Washing your hands. Wash, wash, wash."

Among other steps employers can take to reduce the spread of the flu on the job: holding meetings via conference calls, staggering shifts so that fewer people are on the job at the same time, and avoiding handshaking.

Newspaper editor Rob Blackwell says he had taken only two sick days in the last two years before coming down with the flu and then pneumonia in the past two weeks. He missed several days the first week of January and has been working from home the past week.

"I kept trying to push myself to get back to work because, generally speaking, when I'm sick I just push through it," says Blackwell, the Washington bureau chief for the daily trade paper American Banker.

Connecticut is the only state that requires some businesses to pay employees when they are out sick. Cities such as San Francisco and Washington have similar laws.

Challenger and others say attitudes are changing, and many companies are rethinking their sick policies to avoid officewide outbreaks of the flu and other infectious diseases.

"I think companies are waking up to the fact right now that you might get a little bit of gain from a person coming into work sick, but especially when you have an epidemic, if 10 or 20 people then get sick, in fact you've lost productivity," Challenger says.

___

Associated Press writers Mike Stobbe in Atlanta, Eileen A.J. Connelly in New York, Paul Wiseman in Washington, Barbara Rodriguez in Des Moines, Iowa, and Jim Salter in St. Louis contributed to this report.

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Obama won't support building 'Death Star'

WASHINGTON (AP) — A "Death Star" won't be a part of the U.S. military's arsenal any time soon.

More than 34,000 people have signed an online petition calling on the Obama administration to build the "Star Wars" inspired super-weapon to spur job growth and bolster national defense.

But in a posting Friday on the White House website, Paul Shawcross, an administration adviser on science and space, says a Death Star would cost too much to build — an estimated $850 quadrillion — at a time the White House is working to reduce the federal budget.

Besides, Shawcross says, the Obama administration "does not support blowing up planets."

The U.S., Shawcross points out, is already involved in several out-of-this-world projects, including the International Space Station, which is currently orbiting Earth with a half-dozen astronauts.

___

Online:

White House response to petition: http://tinyurl.com/asd565g

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The story behind Tribune's broken deal

At the end of 2007, real estate tycoon Sam Zell took control of Tribune Co. in a deal that promised to re-energize the media conglomerate. But the company struggled under the huge debt burden the deal created, and less than a year later, it filed for bankruptcy.

One of Chicago's most iconic companies — parent to the Chicago Tribune — was propelled into a protracted and in many ways unprecedented odyssey through Chapter 11 reorganization.

On Dec. 31, after four years, Tribune Co. finally emerged from court protection under new ownership, but at a heavy cost. The company's value was diminished, its reputation was tarnished and its ability to respond to market opportunities during its long bankruptcy was constrained.

Tribune Co.'s bankruptcy saga began as an era of superheated Wall Street deal-making fueled by cheap money was coming to an end. The company's tale is emblematic of the American financial crisis itself, in which a seemingly insatiable appetite for speculative risk using exotic investment instruments helped trigger an economic collapse of historic proportions.

Tribune reporters Michael Oneal and Steve Mills, in a four-part series that begins today, tell the story of Tribune Co.'s journey into and through bankruptcy, throwing a spotlight on the key decisions and missed opportunities that marked a perilous time in the history of the company, the media industry and the economy.

Read the full story, "Part one: Zell's big gamble," as a digitalPLUS member.
To view videos and photos and for a look at the rest of the series visit, chicagotribune.com/brokendeal.

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Judge OKs exhumation of body of lottery winner

The Cook County medical examiner’s office tentatively plans to exhume the body of the million-dollar lottery winner who died of cyanide poisoning on Thursday, a spokeswoman says.

Mary Paleologos, the spokeswoman, said an autopsy of Ureej Khan’s remains would follow on Friday.

Paleologos said the details were still being worked and that a formal announcement would be made later today.

Chief Medical Examiner Stephen J. Cina is expected to hold a news conference after the autopsy has been finished, Paleologos said, but the final results of the examination likely won’t be available until all the tests have been completed.

Khan’s death is being investigated as a homicide after comprehensive toxicological tests showed he had lethal levels of cyanide in his blood.

Earlier today, Judge Susan Coleman gave a quick OK to the request by the medical examiner’s office to exhume the body at Rosehill Cemetery on Chicago’s North Side.

Court papers said the body was not embalmed, leading prosecutors to indicate that it was “critical” to arrange for the remains to be exhumed as soon as possible.

In an affidavit, Cina said it was necessary to do a full autopsy to “further confirm the results of the blood analysis as well as to rule out any other natural causes that might have contributed to or caused Mr. Khan’s death.”

After the brief court hearing, Khan’s sister, Meraj Khan, and her husband, Mohammed Zaman, were mobbed by reporters, cameramen and photographers about the pending exhumation.

“We’ve been waiting for justice all this time,” Meraj Khan said through tears. “I’m just so glad that justice will be served.”

Still, she said, the thought of having her brother’s remains exhumed is distressing to the entire family.

“This is not rest in peace,” she said. “But it’s an investigation, and hopefully the truth will come out.”

Zaman said the last time they saw Urooj Khan was the day before his death. He came over to their house as usual, talked with their children and left. He seemed happy and healthy, Zaman said.

Meraj Khan recounted that at about 4 a.m. the next day, July 20, she was awakened by a phone call from her brother’s line. It was the first day of the Muslim holy month of Ramadan and she thought her brother was up early because of that. Instead, she said, she heard horrible screaming at the other end of the line.

“I couldn’t understand what was happening,” she said. “I heard screaming, and that’s all. So I woke him (Zaman) up. But I still don’t know who made that call.”

By the time Zaman got over to the house five minutes from their home, Urooj Khan was unconscious. He died a short time later at an Evanston hospital.

“It’s hard for me to believe even now,” Meraj Khan said. “How could they do this, whoever did it?”

Meraj Khan and her husband said they could not comment on the police investigation, but they said they knew that at the time of his death, the only people in the home were Khan, his wife, Shabana Ansari, her father Fareedun Ansari, and Khan’s teenage daughter from a previous marriage.

Asked about IRS liens that had been placed against Fareedun Ansari, because of $120,000 in tax debt, Zaman said they were shocked to read about it in the Tribune this week. He said neither Urooj Khan nor Fareedun Ansari ever mentioned it to them.

Zaman said Fareedun Ansari had returned to live with his daughter and Khan last year after he’d moved to New Jersey to run a small convenience store that ultimately failed. He said Fareedun Ansari spent decades working for Urooj Khan’s father in India before coming to Chicago to help out with Khan’s growing dry cleaning and real estate businesses.

Meraj Khan, who last year was granted custody of her brother’s 17-year-old daughter, Jasmeen, said the girl is having a rough time dealing with the mystery surrounding her father’s death and all the recent media attention to the case.

“She’s very devastated. I’m trying to keep her cheerful, but it’s just very hard,” said Meraj Khan, choking back tears. “She’s 17. It’s very hard for her to cope with everything that’s going on.”

jmeisner@tribune.com

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U.S. warns on Java software as security concerns escalate

(Reuters) - The U.S. Department of Homeland Security urged computer users to disable Oracle Corp's Java software, amplifying security experts' prior warnings to hundreds of millions of consumers and businesses that use it to surf the Web.

Hackers have figured out how to exploit Java to install malicious software enabling them to commit crimes ranging from identity theft to making an infected computer part of an ad-hoc network of computers that can be used to attack websites.

"We are currently unaware of a practical solution to this problem," the Department of Homeland Security's Computer Emergency Readiness Team said in a posting on its website late on Thursday.

"This and previous Java vulnerabilities have been widely targeted by attackers, and new Java vulnerabilities are likely to be discovered," the agency said. "To defend against this and future Java vulnerabilities, disable Java in Web browsers."

Oracle declined to comment on the warning on Friday.

Java is a computer language that enables programmers to write software utilizing just one set of code that will run on virtually any type of computer, including ones that use Microsoft Corp's Windows, Apple Inc's OS X and Linux, an operating system widely employed by corporations.

Computer users access Java programs through modules, or plug-ins, that run Java software on top of browsers such as Internet Explorer and Firefox.

The U.S. government's warning on Java came after security experts warned earlier on Thursday of the newly discovered flaw.

It is relatively rare for government agencies to advise computer users to completely disable software due to a security bug, particularly in the case of widely used programs such as Java. They typically recommend taking steps to mitigate the risk of attack while manufacturers prepare an update, or hold off on publicizing the problem until an update is prepared.

In September, the German government advised the public to temporarily stop using Microsoft's Internet Explorer browser to give it time to patch a security vulnerability that opened it to attacks.

The Department of Homeland Security said attackers could trick targets into visiting malicious websites that would infect their PCs with software capable of exploiting the bug in Java.

It said an attacker could also infect a legitimate website by uploading malicious software that would infect machines of computer users who trust that site because they have previously visited it without experiencing any problems.

They said developers of several popular tools, known as exploit kits, which criminal hackers use to attack PCs, have added software that allows hackers to exploit the newly discovered bug in Java to attack computers.

Security experts have been scrutinizing the safety of Java since a similar security scare in August, which prompted some of them to advise using the software only on an as-needed basis.

At the time they advised businesses to only allow their workers to use Java browser plug-ins when prompted for permission by trusted programs such as GoToMeeting, a Web-based collaboration tool from Citrix Systems Inc.

Adam Gowdiak, a researcher with Polish security firm Security Explorations, subsequently said he had found other security bugs in Java that continued to make computers vulnerable to attack.

Java suffered another setback in October when Apple began removing old versions of the software from Internet browsers of Mac computers when its customers installed new versions of its OS X operating system. Apple did not provide a reason for the change and both companies declined comment at the time.

(Editing by Scott Malone, Steve Orlofsky and Bernadette Baum)

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Eager Chudzinski takes over new-look Browns

CLEVELAND (AP) — The Browns have always been a part of Rob Chudzinski's life. Now, he's the man in charge.

Chudzinski, who spent the past two seasons as Carolina's offensive coordinator, was introduced as the club's sixth fulltime coach on Friday, a once-in-a-lifetime opportunity for the 44-year-old who as a kid pretended he played tight end for the Browns during games in his backyard in Toledo, Ohio.

"It is a dream come true," Chudzinski said. "I can't wait to get started."

Chudzinski will inherit a young roster he'll try to develop into a contender with the Browns, who have lost at least 11 games in each of the past five seasons and made the playoffs only once since 1999.

Chudzinski previously worked as an assistant with the Browns, most recently as their offensive coordinator in 2008. Although he has no previous head coaching experience, owner Jimmy Haslam and CEO Joe Banner are confident they hired the best possible candidate available to turn their club into a consistent winner.

"I would not miss the chance for the world." Chudzinski said. "We're going to win here."

The Browns hauled their search to find the 14th coach in franchise history to Arizona and back. They talked to high-profile college coaches, NFL assistants and a fired pro coach who took a team to a Super Bowl.

None of them was hired.

Instead, Chudzinski became their pick.

"I believe we came back with the best coach for the Cleveland Browns," said Haslam, who flew to Charlotte, N.C. on Thursday night with Banner to offer Chudzinski the job. "He is one of the brightest young coaches in the business."

Chudzinski's first move will be to hire his staff. He will immediately meet with the assistants currently working for the Browns. Chudzinski would not comment on any possible candidates to become his coordinators. There are reports he is considering former San Diego coach Norv Turner to run his offense. Chudzinski worked for Turner with the Chargers.

"I have a plan in place," he said. "We're going to get a great staff. We have a young group of players. This is going to be about the process. Lots of people are worried about the end result, but this is going to be the right process to get us where we want to be."

Now that they've hired their coach, Haslam and Banner will focus on finding a new general manager to help pick players for Chudzinski, who will be involved in finding the GM.

The new coach — "Chud," as he's known to players and friends — worked with the Browns' tight ends in 2004 and was their offensive coordinator in 2007, when the team won 10 games — their most since an expansion rebirth in 1999. He was released when Romeo Crennel was fired in 2008.

Chudzinski said when he walked off the field after the final game that season he knew he would be coming back to Cleveland "someday, somehow."

Chudzinski replaces Pat Shurmur, another first-time coach when he was hired, who was fired on Dec. 31 after a 5-11 season. For the past two years, Chudzinski has worked with talented Panthers quarterback Cam Newton and resuscitated Carolina's offense, which was one of the league's worst before he arrived.

When Haslam and Banner embarked on their coaching search as 2013 began, the pair vowed they would wait as long as necessary to find "the right coach" for Cleveland. They promised to give their new coach final say over the roster and planned to pair him with an executive to help pick players.

Chudzinski wasn't seen by many as an option.

And then he became the choice.

Haslam said Chudzinski's passion for the Browns was a bonus, but he had all the credentials and characteristics they were looking for in a new coach.

"If Rob was from Plano, Texas, we would have hired him," Haslam said.

Chudzinski said he wants a team that attacks on both sides of the ball. He would not comment on any of Cleveland's players, and sidestepped a question about rookie Brandon Weeden, who had an uneven first season with the Browns.

Chudzinski interviewed with the team on Wednesday, when the club also visited with Cincinnati defensive coordinator Mike Zimmer. Chudzinski appeared to be a long shot for the job, not because he wasn't qualified, but because it was thought Haslam wanted to make a big splash with his first coaching hire.

However, Chudzinski wowed Haslam and Banner during his meeting and the team decided it was time to end its search in its second week. Haslam said 10 minutes into the interview that he nodded at Banner that they had found their man.

In his first season in Carolina, Chudzinski turned Newton, the No. 1 overall draft pick, loose and the Panthers set club records for total yards (6,237) and first downs (345). Carolina also scored 48 touchdowns after getting just 17 in the season before Chudzinski arrived. The Panthers jumped from last in the league in total yardage to seventh, the biggest improvement since 1999.

Haslam pointed out the Panthers scored 88 touchdowns the past two seasons. Cleveland scored 44.

Following last season, Chudzinski interviewed for head coaching jobs with St. Louis, Jacksonville and Tampa Bay before returning to Carolina.

In getting the Browns' job, Chudzinski was picked over Zimmer, Montreal Alouettes coach Marc Trestman, fired Arizona coach Ken Whisenhunt and Cardinals defensive coordinator Ray Horton. Whisenhunt was in Cleveland for a second interview on Thursday, and appeared to be the front-runner. The Browns also were expected to interview Indianapolis offensive coordinator Bruce Arians.

Chudzinski's hiring may have shocked some Cleveland fans, many of whom at fantasies about Nick Saban or Jon Gruden or Kelly brining his supersonic offense to the NFL.

But his selection is in keeping with at least one of Banner's past moves. When he was in Philadelphia's front office, Banner went outside the box and hired Green Bay assistant Andy Reid, a relative unknown who spent 14 seasons with the Eagles.

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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Seattle bankruptcy hearing to decide Tully’s sale

SEATTLE (AP) — The auction for beleaguered coffee company Tully’s will likely conclude Friday in federal bankruptcy court, with an ownership group led by actor Patrick Dempsey in position to take over the chain. But Starbucks isn’t’ out of the running.

Dempsey — dubbed “McDreamy” in the “Grey’s Anatomy” hospital TV drama — claimed victory last week after an auction.

But a company that teamed up with Starbucks to bid for the Tully’s chain filed an objection Wednesday. AgriNurture Inc. says it’s still willing to proceed with its combined bid with Starbucks of about $ 10.6 million. The bid from Dempsey’s company, Global Baristas LLC, was for $ 9.2 million.

Tully’s has 47 shops in Washington and California with more than 500 employees. It filed for Chapter 11 bankruptcy protection in October.

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