Tag: Manufacturers

Company Check – Brother Accused Of Blocking Third-Party Ink

Posted on by Paul Stradling

Brother (once considered one of the more consumer-friendly printer manufacturers) is now under fire over claims that its latest firmware updates deliberately degrade print quality when third-party toner cartridges are used.

Firmware Updates Allegedly Restrict Third-Party Ink

Right-to-repair activist and electronics technician Louis Rossmann has accused Brother of deploying firmware updates that hinder the use of non-OEM (Original Equipment Manufacturer) consumables. According to Rossmann, users have reported that certain printer functions, such as automatic colour registration, stop working after an update when a third-party cartridge is detected.

Several users have taken to forums and social media to confirm similar issues, with reports stating that previously functional non-OEM toner cartridges suddenly started producing lower-quality prints or experiencing feature restrictions. Furthermore, rolling back to an earlier firmware version is proving difficult, as Brother has removed older updates from its servers.

Brother Denies Any Wrongdoing

Brother has responded to the allegations, denying any deliberate attempt to block third-party consumables. The company issued a statement saying:

“We are aware of the recent false claims suggesting that a Brother firmware update may have restricted the use of third-party ink cartridges. Please be assured that Brother firmware updates do not block the use of third-party ink in our machines.”

Brother maintains that while they encourage the use of Brother-branded toner for optimal performance, their printers do not intentionally degrade print quality based on the cartridge brand. The company attributes user concerns to its standard troubleshooting process, which includes a “Brother Genuine check”, i.e. a diagnostic step that ensures a printer functions correctly with its own branded consumables.

Not the First Manufacturer to Face Backlash

Brother is not the first printer manufacturer accused of anti-consumer practices related to third-party ink. HP, for example, has implemented “Dynamic Security,” which blocks non-HP cartridges entirely. The company has faced multiple lawsuits over this strategy, with critics accusing it of monopolistic practices. HP, however, defends its approach, citing security risks associated with third-party cartridges, including claims that they could potentially introduce malware.

Similarly, Canon has been criticised for implementing firmware updates that disable scanning functions when ink is low, even when the ink is unrelated to the scanning process. Epson has also faced scrutiny for its use of DRM (Digital Rights Management) technology, which prevents cartridges from functioning after a certain period, even if they remain full.

What This Means for Your Business?

For businesses relying on printers for everyday operations, Brother’s alleged restrictions could pose challenges. Many companies opt for third-party toner to cut costs, often paying significantly less than the high price of OEM cartridges. However, with firmware updates now potentially limiting this option, businesses may find themselves locked into purchasing expensive Brother-branded supplies.

While Brother insists that these changes do not impact third-party ink compatibility, user reports suggest otherwise. Companies using Brother printers may need to consider steps such as disabling automatic firmware updates to prevent potential functionality losses. However, doing so carries security risks, as firmware updates often include patches for vulnerabilities.

The growing controversy surrounding printer manufacturers and third-party ink restrictions could push regulatory bodies to take action. Consumer advocacy groups have already called for stricter oversight of post-sale function removal, arguing that disabling previously available features through software updates constitutes deceptive business practices.

As the debate unfolds, businesses should remain vigilant, assessing how these firmware updates might affect their operations. While Brother’s printers have historically been a more user-friendly option in terms of third-party toner compatibility, recent developments suggest that the industry as a whole is moving toward tighter control over consumable use, thereby raising important questions about fairness, transparency, and consumer choice.

Tech News : 15X Samsung Profits (But Workers Strike)

Posted on by Paul Stradling

South Korea’s Samsung Electronics has reported that it expects its profits for the three months to June 2024 to have increased by a massive 15-fold on last year.

AI Driving Chip Prices 

Samsung is the world’s largest memory chip, smartphone and TV maker and the company’s (predicted) profit jump to $10.4 trillion from $670 billion last year is attributed to semiconductor prices being driven by the artificial intelligence boom.

The predicted 15-fold increase in profits to June follows a 10-fold increase in the first quarter.

Reversed Inventory Writedown 

Also, Samsung reversing the writedown of the value of its chips / regaining the value of its chips in its books, due to improved market conditions and demand for chips, appears to have been a key contributing factor to the huge surge in predicted profits.

Demand For High-End DRAM Chips Driving Prices Up 

Samsung’s semiconductor sector is expected to have achieved its second straight quarterly profit, improving upon the previous quarter with the boost coming as memory chip prices recover from their decline between mid-2022 and late-2023, which was caused by a drop in post-pandemic demand for electronic devices.

Analysts also credit the rising chip prices to the strong demand for high-end DRAM chips (Dynamic Random-Access Memory chips), such as the high bandwidth memory (HBM) chips used in AI processors, along with chips for data-centre servers and AI-enabled gadgets. DRAM chips are widely used due to their high speed and efficiency.

For example, during the second quarter, memory chip prices increased, with DRAM chips for tech devices rising by around 13 to 18 per cent. Also, prices for NAND Flash chips (which retain data even when the power is turned off) for data storage increased by 15 per cent to 20 per cent (TrendForce).

Not All Good News 

Although Samsung’s profits may be surging due to demand for and rising prices of its AI chips, the company is facing some other potentially serious challenges. For example:

– Labour disputes and worker strikes: Samsung is facing potential labour unrest following a planned three-day and a call for an indefinite strike by over 30,000 workers, including key chip plant workers, all members of The National Samsung Electronics Union (NSEU), which represents nearly a quarter of Samsung Electronics’ workers in South Korea. The union is demanding a more transparent system for bonuses and time off.

– Competitive pressures. Samsung has some fierce competition in the AI chip market. Its latest high bandwidth memory (HBM) chips have struggled to gain certification from Nvidia, a major player in AI hardware and the issue has placed Samsung behind its smaller (also South Korean) rival, SK Hynix, which has become the leading supplier of HBM chips.

– Rising operating costs. The company is dealing with increased operating costs in its mobile business, due to higher parts costs and elevated expenses for marketing and development of AI services.

– Market volatility. The broader semiconductor market is experiencing fluctuations due to macroeconomic trends and geopolitical issues. While demand for AI applications remains strong, these external factors are introducing uncertainties that could affect business conditions in the latter half of the year.

– Technological advancements. As with all tech companies, Samsung is under pressure to maintain its technological edge. The development and mass production of advanced technologies such as 3nm and 2nm chips are crucial for staying competitive and the company is working on enhancing its technology leadership in memory and foundry operations. Nevertheless, it still faces challenges in ramping up production and ensuring high yields.  Investors are also awaiting news of whether Samsung’s latest fourth-generation HBM chips will receive approval to supply Nvidia (the world’s most valuable company last month) after they failed earlier tests because of heat and power consumption problems.

What Does This Mean For Your Business? 

Samsung’s extraordinary profit surge, driven by the booming AI and semiconductor markets, shows Samsung’s robust position in the semiconductor industry, particularly in AI-driven applications. However, despite the huge profit forecast, the company faces notable challenges, including potentially labour disputes and intense competition, especially in high-end memory chips. Samsung’s ability to navigate these issues while continuing to innovate will be critical for sustaining its market dominance and profitability.

Samsung’s success is also likely to put pressure on competitors to accelerate their own innovation and production capabilities. Companies like SK Hynix, which have already made strides in high-bandwidth memory (HBM) chips, must now continue to advance their technologies to maintain their competitive edge. This competitive landscape drives technological advancements, benefitting the broader industry but also intensifying market rivalry.

For the businesses that rely on semiconductors, e.g. those in the electronics, automotive, and data storage industries, the rising prices and demand for memory chips are unwelcome news. Manufacturers face increased costs for components, most likely prompting them to explore more cost-efficient supply chain solutions or pass on the increased costs to consumers. Collaboration with semiconductor suppliers and investment in alternative technologies could, however, mitigate some of these impacts.

For us as consumers, the rising prices of memory chips look likely to lead to higher costs for consumer electronics, including smartphones, laptops, and other gadgets. However, the improved capabilities of AI-driven devices might offset some of the pain of the price increases, i.e. consumers could benefit from enhanced performance and new features in their tech products, driven by the advancements in semiconductor technology.

Looking ahead, despite the impressive predicted profit figures, Samsung’s path forward currently appears to be fraught with challenges. The company clearly needs to resolve pressing labour disputes amicably to avoid production disruptions. Also, gaining certification for its HBM chips from industry leaders like Nvidia is crucial for maintaining its competitive stance in the AI market. Samsung’s continued investment in advanced technologies, such as 3nm and 2nm chips, will be vital for future growth. The company’s strategic focus on AI and high-performance computing, however, positions it well for more success, but it must remain agile in addressing both market opportunities and challenges.

Tech Insight : New UK Law To Eradicate Weak Passwords

Posted on by Paul Stradling

Here we look at the new UK cybersecurity law that will ban device manufacturers from having weak, easily guessable default passwords, thereby providing extra protection against hacking and cyber-attacks.

The Problem 

With 99 per cent of UK adults owning at least one smart device and UK households owning an average of nine connected devices, but with a home’s smart devices potentially being exposed to more than 12,000 hacking attacks in a single week (Which?), the UK government has decided that protective, proactive action is needed. It’s long been known that easy-to-guess default passwords (like ‘admin’ or ‘12345) in new devices and IoT devices have provided access for cybercriminals. An example (from the US) is the 2016 Mirai attack which led to 300,000 smart products being compromised due to weak security features as well as major internet platforms and services being attacked and much of the US East Coast being left without internet.

The New Laws 

The UK government has introduced the new laws as part of the Product Security and Telecommunications Infrastructure (PSTI) regime. This regime is part of a £2.6 billion National Cyber Strategy, which has been designed to improve the UK’s resilience from cyber-attacks and ensure malign interference does not impact the wider UK and global economy.

The key security aspects of these new laws are that:

– Common or easily guessable passwords (e.g. ‘admin’ or ‘12345’) will be banned to prevent vulnerabilities and hacking.

– Device manufacturers will be required to publish contact details so bugs and issues can be reported and dealt with.

– Manufacturers and retailers must be open with consumers on the minimum time they can expect to receive important security updates.

– The government hopes that taking this action will increase consumers’ confidence in the security of the products they buy and use and help the government to deliver on one of its five priorities to grow the economy.

– The UK’s Data and Digital Infrastructure Minister, Julia Lopez, said of these new laws: “Today marks a new era where consumers can have greater confidence that their smart devices, such as phones and broadband routers, are shielded from cyber threats, and the integrity of personal privacy, data and finances better protected.” 

The Major Role of Businesses 

NCSC Deputy Director for Economy and Society, Sarah Lyons, has highlighted the important role that businesses have to play in protecting the public by “ensuring the smart products they manufacture, import or distribute provide ongoing protection against cyber-attacks”. She has also advised all businesses and consumers that they can read the NCSC’s point of sale leaflet for an explanation of how the new Product Security and Telecommunications Infrastructure (PSTI) regulation affects them and how smart devices can be used securely.

What Does This Mean For Your Business? 

The issue of weak default passwords in devices enabling cybercrime is not new and the news that the government is finally doing something about via legislation is likely to be well-received. The new laws will have implications for businesses, consumers, and the overall UK economy.

For example, for device makers (and importers), the requirement to eliminate default password vulnerabilities and to provide clear avenues for reporting security issues places a significant onus on manufacturers to enhance their security protocols. This may not only involve revising the initial security features but also maintaining transparency about the duration of support for security updates. Such changes could, however, require these businesses to invest in better security frameworks, thereby potentially increasing operational costs. That said, it should also improve the marketability and trustworthiness of their products.

UK businesses stand to gain considerably from these heightened security measures. By bolstering the security standards of connected devices, the new laws may ensure that businesses that rely heavily on such technology, from retail to critical infrastructure, are less susceptible to the disruptions and financial losses associated with cyber-attacks. This enhanced security environment should help maintain business continuity and safeguard sensitive data, thereby helping to foster a more resilient economic landscape.

The new laws may also mean that consumers, who are increasingly concerned about their digital privacy and the security of their data, may be able to make more informed choices about and experience greater confidence in the products they choose to integrate into their daily lives. With manufacturers required to adhere to stricter security measures and provide ongoing updates, consumers can expect a new level of protection for their connected devices, which translates into safer personal and financial data.

Economically, by setting a new cybersecurity standard, the UK appears to be positioning itself as a leader in the safe expansion of digital infrastructure. This leadership could boost innovation in cybersecurity measures, potentially leading to growth in the tech sector and creating new opportunities for employment and development. Also, by fostering a safer digital environment, the UK may attract more digital businesses and investments, further stimulating economic growth.