JK Shin, President and head of IT and Mobile Communication Division, introduces Samsung Electronics Co's latest Galaxy S4 phone during its launch at the Radio City Music Hall in New York March 14, 2013.

SAN FRANCISCO | Fri Mar 15, 2013 10:48pm EDT

SAN FRANCISCO (Reuters) - Samsung's newest, feature-packed Galaxy S4 may put pressure on Apple Inc to accelerate its pace of smartphone design and venture into cheaper devices - both departures from usual practice.

The latest Galaxy, unwrapped with much fanfare in New York on Thursday, out-does the iPhone in most technical aspects. But the challenges it encapsulates run deeper than just a simple specifications comparison.

"It would be overstatement to say Apple is far behind," Charles Golvin, analyst with Forrester, said, but it does need to note the quickening pace of competitive devices being released.

"If anything, what Apple needs to respond to is the cadence of their own releases, probably a completely new design every two years and a sort of speed bump every year is not an adequate cadence for Apple to remain at the forefront of smartphone innovation today."

Samsung's apparent ability to go toe-to-toe with Apple on cutting-edge smartphones may prompt the U.S. titan to finally make its own assault on the lower-end of the market that it has famously stayed away from -- not least to get into untapped markets like China and India.

Many analysts now say Apple has to respond in force to Samsung and other rivals that are grabbing attention. Much of Wall Street is now looking ahead to the next iPhone, but expectations are muted.

Once the darling of Wall Street, Apple has in six months seen its shares fall 30 percent from a high of $705. Its Maps software was panned for inaccuracies; its once-reliable financial results, that rarely failed to surpass Wall Street estimates, missed analysts' expectations.

IN A RUT

Apple appears stuck in an iPhone product cycle, with a new phone typically launched in the second half. In past years, the iPhone has gotten a complete redesign only every two years.

Brian White, analyst with Topeka Capital Markets, who views the Samsung Galaxy S4 as a refresh and "not a game changer," said smartphone technology is now improving so fast that timetables put Apple at a disadvantage.

More importantly, White said, Apple needs to broaden its portfolio and play in more smartphone categories as the high-end market could soon be saturated, and get into new categories such as the oft-rumored television or a smart watch.

"They have all the components of the magic potion, which is the hardware-software ecosystem," he said. "All they need to do is take that potion and put it in a different segment of the iPhone market."

While many on Wall Street believe the quickest way to penetrate fast-growing markets like India and China is a cheaper iPhone, the risk is that a cheap iPhone would cannibalize demand for the premium version and eat into Apple's peerless margins.

Apple's vice-like grip on its ecosystem - with the closely managed app store and its seamless integration with the hardware - is still seen as its biggest strength, one that Samsung is trying to emulate with a larger investment in software and connectivity. The Korean giant is also emphasizing its own mobile "Samsung Hub" rather than the Google Play store that most other Android adopters point to.

The iPhone has seen its sales increase to 125 million in fiscal 2012 from 40 million in fiscal 2010. But in 2012, Samsung became the No.1 in the global smartphone market with 30.3 percent share followed by Apple with 19 percent share.

Samsung's rapid rise is partly helped by the fact that it bombards the market with close to 40 versions tweaked for regional and consumer tastes, from high-end to cheaper models.

Samsung's momentum is a major issue for Apple, Ben Reitzes, analyst with Barclays, who is expecting Apple to launch a lower-end iPhone globally this summer.

Apple declined to comment on Friday. But a day before Samsung's launch, marketing chief Phil Schiller attacked Google's Android operating system, saying that the majority of its users were stuck on older versions. He also said Apple's internal research showed four times as many consumers were switching to iOS from Android than vice versa.

(Additional reporting by Sinead Carew in New York; Editing by Edwin Chan and Leslie Gevirtz)

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A electron microscope image of a coronavirus is seen in this undated picture provided by the Health Protection Agency in London February 19, 2013.

LONDON | Wed Mar 13, 2013 4:38pm EDT

LONDON (Reuters) - Scientists have worked out how a deadly new virus which was unknown in humans until last year is able to infect human cells and cause severe, potentially fatal damage to the lungs.

In one of the first detailed studies of the virus - which emerged in the Middle East and has so far infected 15 people worldwide, killing nine of them - Dutch researchers identified a cell surface protein it uses to enter and infect human cells.

The finding, published in the journal Nature, came as the World Health Organization (WHO) confirmed the 15th case of the virus, known as novel coronavirus or NCoV, in a male patient in Saudi Arabia who died on March 2.

Other cases have been in Jordan and Qatar, and in patients in Germany and Britain linked to travel in the Middle East.

NCoV is from the same family of viruses as those that cause common colds and the one that caused the deadly outbreak of Severe Acute Respiratory Syndrome (SARS) that first emerged in Asia in 2003.

The WHO first issued an international alert about it in September after it was identified in a Qatari man in Britain who had recently been in Saudi Arabia.

A study published last month found that NCoV was well adapted to infecting human cells and may be treatable with medicines similar to the ones used for SARS, which killed a tenth of the 8,000 people it infected.

In this latest study, led by Bart Haagmans at the Erasmus Medical Center in The Netherlands, researchers set out to find how the virus got into cells - which receptors it used - and then to find out where in the body those receptors were common.

POTENTIAL VACCINES

"Once you can identify the receptor and you know the distribution of the receptor in the body, then you can get more information on the pathogenesis (the way it infects people) of the virus and the possibility for transmission," Haagmans said in a telephone interview.

Researchers identified the key receptor for the disease as a cell surface protein called dipeptidyl peptidase 4 (DPP4).

They also found cells containing DPP4 receptors were common in the lower respiratory tract but not in the upper respiratory tract - giving clues to why the virus causes illness in the lungs rather than in the nose and throat as a cold virus would.

The findings should help researchers find ways of developing potential drugs or vaccines to block the DPP4 receptors and prevent infection, Haagmans said.

A few drugs that block DPP4 receptors are already on the market, licensed for use in diabetes, but Haagmans said his team already tried using those to stop the virus in laboratory tests and found they did not work.

He said, however, that the team was working with other molecules that might block the receptors and could form the basis for developing a potential vaccine.

Initial analysis by scientists at Britain's Health Protection Agency last year found that NCoV's closest relatives were most probably bat viruses.

Yet further work by a research team in Germany suggests NCoV may have come through an intermediary - possibly goats.

Haagmans said since DPP4 receptors were also present in other species, including bats, his findings showed it was feasible the virus came from bats. He said the idea that goats may have been an intermediary also looked feasible.

(Reporting by Kate Kelland; Editing by Pravin Char)

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U.S. Secretary of Treasury Jack Lew in the East Room of the White House in Washington, March 4, 2013.

WASHINGTON | Fri Mar 15, 2013 12:30pm EDT

WASHINGTON (Reuters) - Treasury Secretary Jack Lew will press China to take "serious steps" to stop cyber attacks directed at the United States and urge the administration of new Chinese President Xi Jinping to accelerate economic reforms, a U.S. official said on Friday.

Lew's visit to Beijing on Tuesday and Wednesday comes at a crucial time, the official told reporters on condition of anonymity. "China is undergoing their once-in-a-decade leadership transition and, of course, their reform process is at a crossroads."

"It's important to deepen our relationship with China's new leadership team at this time," the official said.

Lew lacks the international stature of his predecessor, Timothy Geithner, and is signaling the importance the United States put on its economic relationship with China by making his first international trip as secretary to Beijing.

Secretary of State John Kerry in coming weeks will also make his first trip to China since taking office last month.

Both Kerry and Lew will host their Chinese counterparts in Washington in the middle of this year for the annual U.S-China Strategic and Economic Dialogue, the official said.

China's legislature formally chose Li Keqiang as premier on Friday, installing the English-speaking bureaucrat as the man in charge of the world's second-largest economy.

President Barack Obama raised U.S. concerns about computer hacking in a phone call with Xi on Thursday, just days after U.S. intelligence leaders said for the first time that cyber attacks and cyber espionage had supplanted terrorism as the top security threat facing the United States.

"We will press China to take serious steps to investigate and put a stop to these activities and to engage with us in a constructive direct dialogue to establish acceptable norms of behavior in cyberspace, recognizing it is a growing challenge for both of us," the senior U.S. official said.

Lew will also press China to allow its currency to rise further against the dollar and push on other concerns such as increased market access for U.S. goods and better protection of intellectual property rights, the official said.

China's yuan has appreciated 16 percent in real terms against the dollar since June 2010. "More progress, however, is needed," the official said.

(Reporting by Doug Palmer; Editing by Doina Chiacu)

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European Space Agency scientists think that there was and could even still be life on Mars and want a new European mission to the red planet to take samples, a conference heard in Noordwijk, The Netherlands heard on Friday, February 25, 2005.

MOSCOW | Thu Mar 14, 2013 3:37pm EDT

MOSCOW (Reuters) - Europe and Russia signed a deal on Thursday for a joint Mars mission which will bore beneath the Red Planet's surface for soil samples they hope will solve the mystery of whether there is life beyond Earth.

Europe's space agency had hoped to work with NASA on the two-spacecraft ExoMars mission but turned to the Russians after the U.S. agency pulled out due to budget shortfalls.

The announcement comes amid heightened excitement over the search for life on the planet in our solar system most like Earth after scientists said analysis from NASA's own mission rover, Curiosity, showed Mars had the right ingredients for life.

European scientists say the two-stage mission, with the two craft to be launched in 2016 and 2018, will pave the way for what NASA has described as the "Holy Grail" of Mars exploration: a separate mission to return dirt samples from the Red Planet.

"Curiosity learnt us a little bit, ExoMars will bring us a step further, but bringing back those samples to Earth you can do 10 to 100 times more analysis," Rolf de Groot, head of the European Space Agency's (ESA) Robotic Exploration Coordination Office, told Reuters.

"That is a goal of everybody who works on Mars exploration."

The Europe-Russia mission hopes to take scientists beyond NASA's finding that the surface of Earth's neighboring planet had the right mix of elements to sustain life, by drilling 2 meters (6 feet) below its radiation-hit surface for samples.

"NASA is also drilling, but two centimeters deep," de Groot said, referring to the ongoing Curiosity mission. "It's a completely different story."

"ExoMars, by drilling 2 meters into the ground, might hope to identify really the big molecules because that would be a direct indication of the presence of life or that life once existed on Mars."

He said the ESA's Mars rover would also be equipped with a much more advanced laboratory than Curiosity has, so would be able to carry out more detailed analysis.

RUSSIAN ROCKETS

Russian Space Agency Roskosmos will provide the rockets to launch the ExoMars - short for Exobiology on Mars - mission and will also design the descent module and surface platform.

Europe turned to Russia after NASA left the $1.3 billion project in February 2012, citing a budget crunch. The ESA and Roskosmos agreed to cooperate last April, but talks to work out the details dragged on for nearly a year.

"This event was a long time in the making and took a great deal of collaboration," Roskosmos head Vladimir Popovkin said after signing the deal with ESA Director Jean-Jacques Dordain in Paris.

Russia's involvement in the ambitious mission could boost the status of its once-pioneering space agency after a litany of costly and embarrassing failures.

The delays in agreeing the mission hinged on the extent of Russia's participation, according to Russian space experts who said Moscow had seemed to reach its goal of full partnership.

"The agreement implies that Russian scientists and engineers will become full-fledged participants in all the international scientific and technical groups," Roskosmos said in a statement.

What was to be Russia's first deep space mission in more than two decades - the Phobos-Grunt mission to scoop up soil samples from Mars - was among five botched launches that damaged Moscow's reputation as a reliable launch partner.

European governments have so far committed 850 million euros to the mission. The funding cap has been set at 1 billion euros ($1.3 billion) but delays and changes to the scientific aspects of the project are expected to drive up the price tag.

Even though NASA pulled out, it will still provide radio communications equipment, an important organics experiment and engineering and mission support.

The United States also plans to follow up its Curiosity rover with an identical probe, to launch in 2020. It has not yet decided if it will cache samples for a future return to Earth.

The U.S. National Academy of Sciences in 2011 ranked a Mars sample return mission as its top priority in planetary science for the next decade. The long-term goal of the U.S. human space program is to land astronauts on Mars in the 2030s.

(Additional reporting by Irene Klotz; Editing by Pravin Char)

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U.S. Secretary of State John Kerry speaks to U.S. embassy staff in Doha, March 6, 2013.

UNITED NATIONS | Fri Mar 15, 2013 10:27pm EDT

UNITED NATIONS (Reuters) - Secretary of State John Kerry voiced support on Friday for an international treaty to regulate the $70 billion global arms trade, but restated Washington's "red line," affirming that it would not accept limits on U.S. domestic gun ownership.

The U.N. General Assembly voted in December to hold a final round of negotiations from March 18 to 28 on what could become the first international treaty to regulate international weapons transfers after a drafting conference in July 2012 collapsed because the United States and others wanted more time.

Arms control campaigners say one person every minute dies worldwide as a result of armed violence and that a convention is needed to prevent the unregulated and illicit flow of weapons into conflict zones fueling wars and atrocities.

"The United States is steadfast in its commitment to achieve a strong and effective Arms Trade Treaty that helps address the adverse effects of the international arms trade on global peace and stability," Kerry said in a statement.

"An effective treaty that recognizes that each nation must tailor and enforce its own national export and import control mechanisms can generate the participation of a broad majority of states, help stem the illicit flow of conventional arms across international borders and have important humanitarian benefits."

But he repeated that the United States - the world's No. 1 arms manufacturer - would not accept any treaty that imposed new limits on U.S. citizens' right to bear arms, a sensitive political issue in the United States.

"We will not support any treaty that would be inconsistent with U.S. law and the rights of American citizens under our Constitution, including the Second Amendment," he said.

"International conventional arms trade is, and will continue to be, a legitimate commercial activity," he said, adding that countries should work to prevent arms from reaching those who commit "the world's worst crimes, including those involving terrorism and serious human rights violations."

The point of the treaty is to set standards for all cross-border transfers of any type of conventional weapon - light and heavy. It would also set binding requirements for nations to review all cross-border arms contracts to ensure the munitions are not used in human rights abuses, do not violate embargoes and are not illegally diverted.

DISPUTE OVER AMMUNITION

The leading U.S. pro-gun group, the National Rifle Association, has vowed to fight the treaty, dismissing suggestions that a December U.S. school shooting massacre in Connecticut bolstered the case for such a pact.

If a treaty is approved, it will require ratification by countries' legislatures before it goes into effect. The NRA has warned the arms trade treaty would undermine the right to bear arms and says it will fight hard to prevent ratification if the Obama administration supports the treaty.

Backers of the treaty accuse the NRA of deceiving the U.S. public about the pact, which they say will have no impact on domestic gun ownership and would apply only to exports.

Some 150 countries will participate in the negotiations that begin on Monday at U.N. headquarters.

Human rights groups and other advocates of the treaty welcomed Kerry's statement.

"While the U.S. government reaffirms its red line on the Second Amendment, it did not issue any new red lines or demands on the international community," said Frank Jannuzi of Amnesty International. "We hope that this means that they will lead the next round (of negotiations) to consensus."

Daryl Kimball, head of the Arms Control Association, said Kerry's remarks were a "long overdue positive statement that makes it clear the administration is dedicated to pursuing a robust treaty."

He added that it was positive Kerry did not raise the issue of ammunition, something the United States had previously demanded be excluded from the treaty. Supporters of a tough treaty in Europe and elsewhere insist on including it.

Last month, U.S. National Security Council deputy spokeswoman Caitlin Hayden said Washington would continue to oppose the inclusion of ammunition in the draft treaty.

"Ammunition is a fundamentally different commodity than conventional arms," Hayden said. "It is fungible, consumable, reloadable, and cannot be marked in any practical way that would permit it to be tracked or traced."

A U.S. official told Reuters on Friday that Washington's position against including ammunition had not changed.

(Editing by Todd Eastham and Peter Cooney)

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Fri Mar 15, 2013 3:26pm EDT

n">(Reuters) - Radio frequency chip makers are set to gain as Samsung Electronics Co Ltd and Apple Inc unveil ever more sophisticated smartphones and tablets to battle for the No. 1 spot in the global mobile devices market.

Investors and analysts say they like shares of RF Micro Devices Inc, Skyworks Solutions Inc and Avago Technologies Ltd - companies that make the chips that enable gadgets to send and receive data wirelessly.

Samsung unveiled its latest flagship phone, the Galaxy S4, in New York on Thursday. The S4 can stop and start videos when someone looks at the screen, flip between songs at the wave of a hand and record sound to accompany pictures.

As manufacturers improve and add new features to phones, which are increasingly used to stream music, video and games, they are boosting the RF chip technology used in the devices.

"The RF content in handsets continues to go up," said Stewart Stecker, a portfolio manager at AlphaOne Capital. "That's good from an immediate to longer-term perspective for the entire RF supply chain."

The importance of RF chips will increase as network operators deploy high-speed wireless technology known as 4G LTE (long-term evolution), analysts said.

LTE requires a much higher number of frequency bands, which increases the number of RF chips in a phone.

The global LTE market is expected to almost double this year, surpassing the $10 billion mark, according to a March 13 report from telecom market research firm Infonetics Research.

"As you add LTE - that's a whole other frequency - you need more radio, more RF equipment," said Northland Securities analyst Tom Sepenzis.

A Verizon customer, for example, using a Samsung Galaxy S4 while traveling the world, would need to be able to use the LTE network in the United States and other countries, said Sepenzis.

"That requires more complex amplifiers that can handle multiple frequencies, requires better antenna solutions, switching capability to handle all the different frequencies. That obviously favors the RF component manufacturers," he said.

DIVERSIFYING ORDERS

Within the RF chip supplier group, analysts said those that have diversified their client base by supplying to Samsung, Apple, and other smartphone vendors such as China's ZTE Corp are best placed to take advantage of demand.

After chipping away for years at Apple's market share, Samsung emerged as the No. 1 seller of smartphones last year, undercutting its main competitor with cheaper handsets and a wide range of products.

Samsung sold 64.5 million smartphones in the fourth quarter of 2012, compared with 43.5 million iPhones sold by Apple, data from market research company Gartner shows.

Greensboro, North Carolina-based RF Micro receives about a quarter of its revenue from Samsung, up from 10 percent a year ago, data compiled by analysts showed. Orders from Apple account for a fifth of sales, they said. RF Micro declined to comment.

Power amplifier maker Skyworks relies on Samsung and Apple for about a quarter each of its revenue, analysts said. Skyworks was not available for comment.

T. Rowe Price Global Technology fund portfolio manager Josh Spencer said he likes Avago Technologies Ltd.

"Avago has some very high-end filtering technology that you have to have in the smartphone antennas," Spencer said, adding that he was also considering buying RF Micro's stock.

Shares of RF Micro and Skyworks gained 15 percent and 21 percent respectively from the beginning of the year until February 21, when the upward trend was interrupted by Qualcomm Inc's unveiling of plans to make its own RF chip.

But both stocks recovered a day later after analysts said it was unlikely that Qualcomm would risk damaging integrated circuit partnerships to seek a profit opportunity of not more than $600 million.

Qualcomm has nearly half of the global market for "baseband" chips, which connect mobile phones to cellular networks, and therefore is also set to benefit from rapid LTE growth.

The S4 will use Samsung's application processor in some regions and Qualcomm's Snapdragon chips, which have LTE features, in others.

"Qualcomm has such dominance in the baseband market that they have pricing leverage even against big customers," Spencer said.

(Editing by Robin Paxton)

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