Apple stock wilts on worries about iPhone demand

SAN FRANCISCO (AP) — Apple‘s stock slipped below $ 500 for the first time in 11 months on Monday as investors reacted to reports signaling the company’s latest iPhone is falling further behind a slew of sleek alternatives running Google’s Android software.

The latest indication that Apple, the world’s most valuable company, is seeing sluggish demand for its iPhone 5 emerged in separate stories published Monday in the Japanese newspaper Nikkei and The Wall Street Journal. Both publications cited unnamed people familiar with the situation saying Apple has dramatically reduced its orders for the parts needed to build the newest iPhone because the device isn’t selling as well as the company hoped.

The adjustment means Apple will buy about half as many display screens for the iPhone as management originally planned for the opening three months of the year, according to the newspapers.

Apple Inc., which is based in Cupertino, Calif., declined to comment Monday. Spokeswoman Natalie Kerris said Apple executives would share their views on market conditions Jan. 23 when the company is scheduled to release its financial results for the final three months of 2011. The period covers the first full quarter that the iPhone 5 was on sale.

Although Apple hailed the iPhone 5 as the best version yet of a product that has revolutionized the telecommunications and computing industry, the company’s stock has wilted since the device hit the market.

After peaking at $ 705.07 on the day of the iPhone 5′s Sept. 21 release, Apple’s stock has plunged nearly 30 percent. The shares fell $ 18.55, or 3.6 percent, to close Monday’s regular trading at $ 501.75, dragging the company’s market value nearly $ 190 billion below where it stood in late September. The stock traded at $ 498.51 earlier in the day, its lowest price since February.

The stock’s decline hasn’t been entirely caused by concerns about the iPhone 5′s sales performance. Industry analysts are also worried about the recent introduction of a smaller, less expensive iPad cutting into the company’s profits.

But the biggest fears hover around the iPhone because it has become Apple’s most valuable product since the company’s late CEO, Steve Jobs, unveiled the first model in 2007. Apple has sold more than 271 million of the devices since then, and in the company’s last fiscal year ending in September, the iPhone generated $ 80 billion in sales to account for more than half of the company’s total revenue.

But Apple’s upgrades of the iPhone in the past two years have disappointed gadget lovers who have been clamoring for Apple to do more to stay in front of device makers relying on the free Android software made by Google Inc. For instance, there were high hopes for a larger iPhone screen with the release of the 2011 model, but Apple waited until last September to take that leap. And when Apple moved to a larger display screen with the iPhone 5, it didn’t include a special chip to enable users to make mobile payments by tapping the handset on another device at the checkout stand. Such a mobile payment feature is available on some Android phones.

Finally, Apple has insisted that wireless carriers subsidize so much of the iPhone’s cost in exchange for customers’ two-year commitments on data plans that the carriers make little or no money by selling the devices. That has prompted more wireless carriers to tout less expensive Android phones in their stores, undercutting the demand for iPhones, said Darren Hayes, who has been studying the shifting market conditions as chairman of the computing systems program at Pace University in New York.

Through the third quarter of last year, Android devices represented 75 percent of smartphone shipments worldwide according to the research firm International Data Corp. That was up from 58 percent at the same point 2011. Meanwhile, Apple’s share of worldwide smartphone shipments has fallen from a peak of 23 percent in the fourth quarter of 2011 to 15 percent in the third quarter of last year.

Samsung Electronics, in particular, has been benefiting from the growing popularity of its Android-powered phones, led by its Galaxy S line. The company said Monday that it sold more than 100 million Galaxy S phones in less than three years. It took the iPhone nearly four years to reach that milestone.

“This is a real wake-up call for Apple,” Hayes said. “They need to be more flexible in how they do things.” Among other things, Hayes thinks Apple may have to reduce the financial burden on wireless carriers selling the iPhone and spend more money advertising the devices, especially with the recent wave of phones running on Microsoft Corp.’s Windows software. Apple’s efforts to sell more iPhones to companies also could be short-circuited if Research in Motion Ltd.’s upcoming release of a revamped BlackBerry proves to be a hit. The BlackBerry is due out Jan. 30.

In an attempt to regain its competitive edge, Apple already is considering the release of a less expensive version of the iPhone made of cheaper parts to boost sales in less affluent countries, according to a report last week in The Wall Street Journal. The company so far hasn’t commented on that speculation, either. The least expensive iPhone 5 without a wireless contract sells for $ 649. With the subsidy included with a two-year wireless service contract, the iPhone 5 sells for as little as $ 199.

Even as it loses ground to Android products, the iPhone remains a solid seller. Some analysts believe Apple sold more than 50 million iPhones in its last quarter ending in December, which would be far the most units that the company has ever shipped during any previous three-month period.

What’s more, the iPhone 5 got off to a torrid start in China, where Apple expects to eventually sell more devices than it does in the U.S. Apple said it sold more than two million iPhone 5s in the three days after its debut in China last month.

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AP source: Armstrong tells Oprah he doped

AUSTIN, Texas (AP) — Lance Armstrong confessed to Oprah Winfrey during an interview Monday that he used performance-enhancing drugs to win the Tour de France, a person familiar with the situation told The Associated Press.

The person spoke on condition of anonymity because the interview is to be broadcast Thursday on Winfrey's network.

Armstrong was stripped of all seven Tour titles last year following a voluminous U.S. Anti-Doping Agency report that portrayed him as a ruthless competitor, willing to go to any lengths to win the prestigious race.

USADA chief executive Travis Tygart labeled the doping regimen allegedly carried out by the U.S. Postal Service team that Armstrong once led, "The most sophisticated, professionalized and successful doping program that sport has ever seen."

After a federal investigation of the cyclist was dropped without charges being brought last year, USADA stepped in with an investigation of its own. The agency deposed 11 former teammates and accused Armstrong of masterminding a complex and brazen drug program that included steroids, blood boosters and a range of other performance-enhancers.

A group of about 10 close friends and advisers to Armstrong left a downtown Austin hotel about three hours after they arrived Monday afternoon for the taping. Among them were Armstrong attorneys Tim Herman and Sean Breen, along with Bill Stapleton, Armstrong's longtime agent, manager and business partner. All declined comment entering and exiting the session.

Soon afterward, Winfrey tweeted: "Just wrapped with (at)lancearmstrong More than 2 1/2 hours. He came READY!" She was scheduled to appear on "CBS This Morning" on Tuesday to discuss the interview.

In a text to the AP on Saturday, Armstrong 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."

Armstrong stopped at the Livestrong Foundation, which he founded, on his way to the interview and said, "I'm sorry" to staff members, some of whom broke down in tears. A person with knowledge of that session said Armstrong choked up and several employees cried during the session.

The person also said Armstrong apologized for letting the staff down and putting Livestrong at risk but he did not make a direct confession to using banned drugs. He said he would try to restore the foundation's reputation, and urged the group to continue fighting for the charity's mission of helping cancer patients and their families.

Armstrong spoke to a room full of about 100 staff members for about 20 minutes, expressing regret for everything the controversy has put them through, the person said. He told them how much the foundation means to him and that he considers the people who work there to be like members of his family. None of the people in the room challenged Armstrong over his long denials of doping.

Winfrey and her crew had earlier said they would film Monday's session at Armstrong's home. As a result, local and international news crews were encamped near the cyclist's Spanish-style villa before dawn.

Armstrong still managed to slip away for a run despite the crowds outside his home. He returned by cutting through a neighbor's yard and hopping a fence.

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Jim Litke reported from Chicago.

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Well: How to Go Vegan

When I first heard former President Bill Clinton talk about his vegan diet, I was inspired to make the switch myself. After all, if a man with a penchant for fast-food burgers and Southern cooking could go vegan, surely I could too.

At the grocery store, I stocked up on vegan foods, including almond milk (that was the presidential recommendation), and faux turkey and cheese to replicate my daughter’s favorite sandwich. But despite my good intentions, my cold-turkey attempt to give up, well, turkey (as well as other meats, dairy and eggs) didn’t go well. My daughter and I couldn’t stand the taste of almond milk, and the fake meat and cheese were unappealing.

Since then, I’ve spoken with numerous vegan chefs and diners who say it can be a challenge to change a lifetime of eating habits overnight. They offer the following advice for stocking your vegan pantry and finding replacements for key foods like cheese and other dairy products.

NONDAIRY MILK Taste all of them to find your favorite. Coconut and almond milks (particularly canned coconut milk) are thicker and good to use in cooking, while rice milk is thinner and is good for people who are allergic to nuts or soy. My daughter and I both prefer the taste of soy milk and use it in regular or vanilla flavor for fruit smoothies and breakfast cereal.

NONDAIRY CHEESE Cheese substitutes are available under the brand names Daiya, Tofutti and Follow Your Heart, among others, but many vegans say there’s no fake cheese that satisfies as well as the real thing. Rather than use a packaged product, vegan chefs prefer to make homemade substitutes using cashews, tofu, miso or nutritional yeast. At Candle 79, a popular New York vegan restaurant, the filling for saffron ravioli with wild mushrooms and cashew cheese is made with cashews soaked overnight and then blended with lemon juice, olive oil, water and salt.

THINK CREAMY, NOT CHEESY Creaminess and richness can often be achieved without a cheese substitute. For instance, Chloe Coscarelli, a vegan chef and the author of “Chloe’s Kitchen,” has created a pizza with caramelized onion and butternut squash that will make you forget it doesn’t have cheese; the secret is white-bean and garlic purée. She also offers a creamy, but dairy-free, avocado pesto pasta. My daughter and I have discovered we actually prefer the rich flavor of butternut squash ravioli, which can be found frozen and fresh in supermarkets, to cheese-filled ravioli.

NUTRITIONAL YEAST The name is unappetizing, but many vegan chefs swear by it: it’s a natural food with a roasted, nutty, cheeselike flavor. Ms. Coscarelli uses nutritional yeast flakes in her “best ever” baked macaroni and cheese (found in her cookbook). “I’ve served this to die-hard cheese lovers,” she told me, “and everyone agrees it is comparable, if not better.”

Susan Voisin’s Web site, Fat Free Vegan Kitchen, offers a nice primer on nutritional yeast, noting that it’s a fungus (think mushrooms!) that is grown on molasses and then harvested and dried with heat. (Baking yeast is an entirely different product.) Nutritional yeasts can be an acquired taste, she said, so start with small amounts, sprinkling on popcorn, stirring into mashed potatoes, grinding with almonds for a Parmesan substitute or combining with tofu to make an eggless omelet. It can be found in Whole Foods, in the bulk aisle of natural-foods markets or online.

BUTTER This is an easy fix. Vegan margarines like Earth Balance are made from a blend of oils and are free of trans fats. Varieties include soy-free, whipped and olive oil.

EGGS Ms. Coscarelli, who won the Food Network’s Cupcake Wars with vegan cupcakes, says vinegar and baking soda can help baked goods bind together and rise, creating a moist and fluffy cake without eggs. Cornstarch can substitute for eggs to thicken puddings and sauces. Vegan pancakes are made with a tablespoon of baking powder instead of eggs. Frittatas and omelets can be replicated with tofu.

Finally, don’t try to replicate your favorite meaty foods right away. If you love a juicy hamburger, meatloaf or ham sandwich, you are not going to find a meat-free version that tastes the same. Ms. Voisin advises new vegans to start slow and eat a few vegan meals a week. Stock your pantry with lots of grains, lentils and beans and pile your plate with vegetables. To veganize a recipe, start with a dish that is mostly vegan already — like spaghetti — and use vegetables or a meat substitute for the sauce.

“Trying to recapture something and find an exact substitute is really hard,” she said. “A lot of people will try a vegetarian meatloaf right after they become vegetarian, and they hate it. But after you get away from eating meat for a while, you’ll find you start to develop other tastes, and the flavor of a lentil loaf with seasonings will taste great to you. It won’t taste like meat loaf, but you’ll appreciate it for itself.”

Ms. Voisin notes that she became a vegetarian and then vegan while living in a small town in South Carolina; she now lives in Jackson, Miss.

“If I can be a vegan in these not-quite-vegan-centric places, you can do it anywhere,” she said. “I think people who try to do it all at once overnight are more apt to fail. It’s a learning process.”

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What are your vegantips? We’re collecting suggestions on ingredients, recipes and strategies.

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In Hollywood Movies for China, Bureaucrats Want a Say

20th Century Fox

The film “Life of Pi” went through the approval process largely unscathed, but received some resistance over a line of dialogue.

LOS ANGELES — When “Kung Fu Panda 3” kicks its way into China’s theaters in 2016, the country’s vigilant film censors will find no nasty surprises.

Zade Rosenthal/Walt Disney Pictures

The makers of “Iron Man 3” arranged for bureaucrats to meet its star, Robert Downey Jr.

After all, they have already dropped in to monitor the movie at the DreamWorks Animation campus here. And the story line, production art and other creative elements have met their approval.

The lure of access to China’s fast-growing film market — now the world’s second largest, behind that of the United States — is entangling studios and moviemakers with the state censors of a country in which American notions of free expression simply do not apply.

Whether studios are seeking to distribute a completed film in China or join with a Chinese company for a co-production shot partly in that country, they have discovered that navigating the murky, often shifting terrain of censorship is part of the process.

Billions of dollars ride on whether they get it right. International box-office revenue is the driving force behind many of Hollywood’s biggest films, and often plays a deciding role in whether a movie is made. Studios rely on consultants and past experience — and increasingly on informal advance nods from foreign officials — to help gauge whether a film will pass censorship; if there are problems they can sometimes be addressed through appeal and subsequent negotiations.

But Paramount Pictures just learned the hard way that some things won’t pass muster — like American fighter pilots in dogfights with MIGs. The studio months ago submitted a new 3-D version of “Top Gun” to Chinese censors. The ensuing silence was finally recognized as rejection.

Problems more often affect films that touch the Chinese directly. “Any movie about China made by outsiders is going to be very sensitive,” said Rob Cohen, who directed “The Mummy: Tomb of the Dragon Emperor,” among the first in a wave of co-productions between American studios — in this case, Universal Pictures — and Chinese companies.

One production currently facing scrutiny is Disney and Marvel’s “Iron Man 3,” parts of which were filmed in Beijing in the last month. It proceeded under the watchful eye of Chinese bureaucrats, who were invited to the set and asked to advise on creative decisions, according to people briefed on the production who asked for anonymity to avoid conflict with government or company officials. Marvel and Disney had no comment.

Another prominent film, Ang Lee’s “Life of Pi,” which was nominated last week for 11 Academy Awards, made it through the process mostly unscathed, but got some pushback over a line in which a character declared that “religion is darkness.”

“They modified the translation a little, for fear of provoking religious people,” Mr. Lee said.

Hollywood as a whole is shifting toward China-friendly fantasies that will fit comfortably within a revised quota system, which allows more international films to be distributed in China, where 3-D and large-format Imax pictures are particularly favored.

At the same time, it is avoiding subject matter and situations that are likely to cause conflict with the roughly three dozen members of a censorship board run by China’s powerful State Administration of Radio, Film and Television, or S.A.R.F.T.

In addition, some studios are quietly asking Chinese officials for assurance that planned films, even when they do not have a Chinese theme, will have no major censorship problems.

The censorship bureau did not respond to a list of questions submitted by The New York Times seeking information about its process and guidelines.

Studios are quickly discovering that a key to access in China is the inclusion of Chinese actors, story lines and locations. But the more closely a film examines China, the more likely it is to collide with shifting standards, unwritten rules and unfamiliar political powers who hold sway over what can be seen on the country’s roughly 12,000 movie screens.

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Egyptian Court Overturns Mubarak’s Conviction

Mohamed Abd El Ghany/Reuters

Supporters of Hosni Mubarak celebrated on Sunday outside a High Court in Cairo.

CAIRO — An Egyptian appeals court on Sunday threw out the guilty verdict and life sentence against former President Hosni Mubarak on charges that he allowed the killing of protesters. The court ordered a new trial, which would once again send the ailing autocrat rolling on a stretcher into the steel defendant’s cage in an Egyptian criminal court.

Whether this was a victory or a setback for Mr. Mubarak was confused and contested. Both the prosecution and the defense had appealed the verdict, one side seeking a stronger verdict and the other an acquittal. Lawyers for the Islamist party allied with President Mohamed Morsi argued that a new trial with new evidence could yield a death penalty.

But other Egyptians reacted to the decision with exasperated sighs, seeing a parable of the country’s fitful progress in its struggle to break free of its autocratic past.

“Oh my God, we went back to square one, back to the early days of the revolution two years ago, when people were first calling for a Mubarak trial,” said Emad Shahin, a political scientist at the American University of Cairo.

Mr. Mubarak’s unending case, he said, reflects Egypt’s unfinished revolution, in which a leader of the old Islamist opposition has come to preside uneasily over the largely still intact institutions of Mr. Mubarak’s former government, including the courts and the police.

“You are fighting Mubarak with his laws and his men,” Mr. Shahin said.

With a parliamentary election set for April, the new trial appeared certain to revive the calls for justice and revenge that once animated the uprising against Mr. Mubarak. Among Mr. Morsi’s Islamist supporters, the renewed attention to the case played into their depiction of an epic struggle between Egypt’s newly elected leaders and the vestiges of the old state.

“God’s will was for the trial to be redone under Morsi, with the availability of new evidence and new defendants,” Essam el-Erian, a senior leader of President Morsi’s Freedom and Justice Party, said in a statement.

Mr. Mubarak, 84, spent Sunday night in a military hospital, where he has been transferred repeatedly from his prison cell because of a host of reported health problems, some resulting from falls in the prison bathroom. At one point last year, the official Egyptian state news agency erroneously reported that he was “clinically dead” from a stroke. His first trial was conducted under the rule of the generals who seized power at his ouster, and have since ceded authority to Mr. Morsi.

More than 800 civilian demonstrators were killed, many of them by police and security forces, during the three weeks of mostly nonviolent protests that ended Mr. Mubarak’s rule. When the transitional government pursued charges against Mr. Mubarak and his circle, human rights lawyers faulted the prosecutors for relying on the same police force accused of killing the protesters to collect evidence against itself. And during Mr. Mubarak’s trial, many accused the prosecutors of failing to make good use of the evidence they did gather.

The guilty verdict was considered ripe for appeal from the moment it was issued, because the judge who handed it down said at the time that he had seen no evidence to back up a conviction. Instead, the judge reasoned that Mr. Mubarak and his Interior Ministry bore responsibility for the deaths of the protesters by virtue of their positions; he acquitted a half-dozen subordinate Interior Ministry officials who were charged in the same case.

Under Egyptian law, the ruling on Sunday effectively rewinds the court proceedings to the original indictment of Mr. Mubarak in 2011. When the case is assigned to a new court, the judge will have broad latitude and can send the case back to prosecutors for further investigation and new evidence, or even amend the charges.

Evidently anticipating Sunday’s ruling, Egyptian prosecutors recently had begun a new case against Mr. Mubarak, accusing him of taking payoffs from the state news organization Al Ahram in the form of $1 million in gifts over the last six years of his rule. The prosecutors issued an order on Saturday that would allow them to go on detaining Mr. Mubarak for questioning in that matter even if the court threw out his conviction in the protesters’ deaths.

Mayy El Sheikh contributed reporting.

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HTC seeks Myanmar edge with local font phones

YANGON (Reuters) – Peter Chou, CEO of Taiwan smartphone company HTC Corp, will on Monday launch what he hopes will be a major boost to both a backward tech sector in Myanmar, his country of birth, and to his company’s share of one of the few untapped mobile markets: a phone that locals can use out of the box.

Until now, Chou says, Myanmarese users of mobile phones and computers must install fonts in their own language, a process that is cumbersome, often invalidates the device’s warranty and has, he says, slowed innovation and the embrace of technology.

HTC has instead teamed up with a local distributor and a software developer to customize Google’s Android operating system so its devices display local fonts and sport a dedicated and, Chou says, intuitive, Myanmar language onscreen keyboard.

“You don’t have to spend two months to learn how to type it,” Chou said in an interview ahead of the launch. “You just type it. We want to give people here a computing device they don’t have to learn. They just try it, they just use it, they just get it.”

Myanmar IT experts say that while the country’s alphabet is no more complex than some other Asian scripts, a failure to agree how to apply an international standard for language symbols called Unicode to existing versions of the computer font has made it difficult to bake the language into software.

As a result, web pages and apps will often be unreadable.

BIG CHALLENGES, LITTLE PENETRATION

The issue of fonts may seem a basic one, but reflects the challenges Myanmar faces in catching up with its neighbors as it sheds decades of military control over politics and the economy. Myanmar has one of the lowest mobile penetration rates in the world, with only 3 percent of the population owning a phone in 2011, according to the World Bank. In neighboring Bangladesh, 56 percent of people have a mobile phone.

When IT enthusiasts met last year for a conference on the future of technology called Barcamp Yangon, much of the discussion revolved around such basic issues, participants said. With at least two competing types of font software available, disagreements remain.

The problem is worse on smartphones, says Soe Ngwe Ya, general manager of KMD, HTC’s distribution partner for the new phones. In order to install such fonts on mobile devices users must first “root” the phone, effectively bypassing the manufacturer’s controls on customizing the phone’s operating system. That often invalidates any warranty. “It’s a major issue,” he says.

HTC also hopes it can claw back some ground from its biggest competitor in Android phones, Samsung Electronics, which has established a first mover advantage in Myanmar.

Samsung has at least two distributors for its handsets and its advertisements are visible around the capital. Soe says KMD will act as HTC’s distributor, open a flagship store and service HTC users.

Chou, who was born in Myanmar but left to work and study in Taiwan more than 30 years ago, says that at least for now the Myanmar fonts and keyboard will only be available on HTC devices. He denied that this undermined his claims of contributing to his homeland.

“While sometimes you can be idealistic,” he said, “the first thing you have to show the people is something to get excited about.”

(Editing by Ian Geoghegan)

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Patriots beat Texans 41-28, Ravens up next

FOXBOROUGH, Mass. (AP) — Tom Brady idolized Joe Montana as a kid in the Bay Area. Now, he's surpassed his hero for postseason wins.

Brady got his 17th, the most for any quarterback, in New England's 41-28 AFC divisional victory over Houston on Sunday. If Brady can lead the Patriots past Baltimore in next weekend's conference title game, then win the Super Bowl, he'll equal the 49ers' Hall of Famer for NFL championships.

Brady has guided the Patriots to five Super Bowls, winning the first three; Montana was 4 for 4 in the big game, playing for Brady's hometown team.

"I grew up a 49ers fan," Brady said. "Joe Montana and Steve Young ... those guys are in another class."

Next up is Baltimore, which stunned top-seeded Denver in double overtime Saturday, and lost 23-20 at Gillette Stadium last January in the last step before the Super Bowl. But the Ravens beat the Patriots in Week 3 this season at Baltimore.

"I think the two best teams are in the final," Brady said. "Baltimore certainly deserves to be here and so do we."

Seldom-used Shane Vereen scored three times, twice on pinpoint throws from Brady, as New England (13-4) beat Houston (13-5) for the second time in a month.

Brady was missing some key helpers, but got the usual outstanding performance from Wes Welker, his favorite target the last six years. The AFC's top receiver with 118 catches this season, Welker looked like he might reach that total against Houston's befuddled defense. He caught six in the first half for 120 yards, including a 47-yarder, and wound up with eight for 131.

And the AFC East champion Patriots got more than anyone could have predicted from third-string running back Vereen, who scored their first two TDs on a 1-yard run and an 8-yard pass. He capped his biggest pro performance with an over-the-shoulder 33-yard catch early in the fourth period.

It was Brady's 41st postseason TD pass, behind only Brett Favre (44) and, you guessed it, Montana (45).

"I hope I am around for a few more years," the 35-year-old Brady said. "I love playing, I love competing ..."

The boost from Vereen offset the loss of tight end Rob Gronkowski (arm) and RB Danny Woodhead (thumb) in the first quarter.

"Shane had a great game, just a huge growing up moment for him, very special," Brady said. "There were a lot of guys who made a lot of plays."

New England's defense helped put away the Texans. Rob Ninkovich's leaping third-quarter interception stopped a drive, and six plays later, Brady hit Brandon Lloyd for a 6-yard score.

Although the Texans got two fourth-quarter TDs on passes by Matt Schaub, their season ended with four defeats in their last six games. That slump cost the AFC South champions the top seed in the playoffs, forcing a trip to New England after they beat Cincinnati in the wild-card round.

The Texans couldn't measure up.

Unlike their 42-14 loss here a month ago, the Texans didn't fold early. J.J. Watt, their dominating defensive end, bothered Brady, and when they fell behind 17-3, they had the fortitude to climb back.

Arian Foster did all the work after Danieal Manning's second big kickoff return, this one a 35-yarder that had 15 yards tacked on when kicker Stephen Gostkowski brought down Manning with a horse-collar tackle. The Pro Bowl runner covered all 47 yards on a five-play drive and his 1-yard run — he barely squeezed into the end zone — made it 17-10.

Houston forced a three-and-out, and a short punt gave the Texans another shot just before halftime. They got close enough for Shayne Graham to kick a 55-yard field goal as the half ended.

But the Patriots pulled away in the third quarter for coach Bill Belichick's 17th postseason win, third behind Tom Landry (20) and Don Shula (19).

Needing a quick jolt after being blown out by the Patriots on Dec. 10, the Texans got it on the opening kickoff from Manning. He took the ball 6 yards in his end zone and never hesitated in returning it. He broke free at the Houston 30 and wasn't run down until reaching the New England 12.

That spark didn't even last one play, though, and Houston wound up with Graham's 27-yard field goal 63 seconds in.

And when the Texans closed the first half with a 10-point spurt, they wasted the momentum by allowing a quick touchdown drive to open the third period. Brady went to the familiar (Welker and tight end Aaron Hernandez) on that series before second-year back Stevan Ridley scored on an 8-yard burst.

New England lost Gronkowski and Woodhead almost immediately. Gronkowski missed five regular-season games with a broken left forearm, but returned for the finale. Eight Patriots plays on offense and he was gone again.

So Brady found other targets; he probably could complete passes to Belichick for big gains.

Vereen was an unlikely star. After gaining 400 yards overall during the season, he picked up 124 against the Texans. He had four touchdowns in the regular season.

NOTES: New England has played in eight AFC championship games, going 7-1, including 5-1 with Brady and Belichick. ... Brady threw for 344 yards, and Schaub threw for 343. Schaub's TD passes were 25 yards to DeVier Posey and 1 to Foster. ... Foster had 90 yards rushing, the first time in four playoff games he did not reach 100. But his 515 tie for most in a player's first four playoff games with Denver's Terrell Davis.

___

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

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City Room: Cuomo Declares Public Health Emergency Over Flu Outbreak

With the nation in the grip of a severe influenza outbreak that has seen deaths reach epidemic levels, New York State declared a public health emergency on Saturday, making access to vaccines more easily available.

There have been nearly 20,000 cases of flu reported across the state so far this season, officials said. Last season, 4,400 positive laboratory tests were reported.

“We are experiencing the worst flu season since at least 2009, and influenza activity in New York State is widespread, with cases reported in all 57 counties and all five boroughs of New York City,” Gov. Andrew M. Cuomo said in a statement.

Under the order, pharmacists will be allowed to administer flu vaccinations to patients between 6 months and 18 years old, temporarily suspending a state law that prohibits pharmacists from administering immunizations to children.

While children and older people tend to be the most likely to become seriously ill from the flu, Mr. Cuomo urged all New Yorkers to get vaccinated.

On Friday, the Centers for Disease Control and Prevention in Atlanta said that deaths from the flu had reached epidemic levels, with at least 20 children having died nationwide. Officials cautioned that deaths from pneumonia and the flu typically reach epidemic levels for a week or two every year. The severity of the outbreak will be determined by how long the death toll remains high or if it climbs higher.

There was some evidence that caseloads may be peaking, federal officials said on Friday.

In New York City, public health officials announced on Thursday that flu-related illnesses had reached epidemic levels, and they joined the chorus of authorities urging people to get vaccinated.

“It’s a bad year,” the city’s health commissioner, Dr. Thomas A. Farley, told reporters on Thursday. “We’ve got lots of flu, it’s mainly type AH3N2, which tends to be a little more severe. So we’re seeing plenty of cases of flu and plenty of people sick with flu. Our message for any people who are listening to this is it’s still not too late to get your flu shot.”

There has been a spike in the number of people going to emergency rooms over the past two weeks with flulike symptoms – including fever, fatigue and coughing – Dr. Farley said.

Mayor Michael R. Bloomberg and Mr. Cuomo made a public display of getting shots this past week.

In a briefing with reporters on Friday, officials from the C.D.C. said that this year’s vaccine was effective in 62 percent of cases.

As officials have stepped up their efforts encouraging vaccinations, there have been scattered reports of shortages. But officials said plenty of the vaccine was available.

According to the C.D.C., makers of the flu vaccine produced about 135 million doses for this year. As of early this month, 128 million doses had been distributed. While that would not be enough for every American, only 37 percent of the population get a flu shot each year.

Federal health officials said they would be happy if that number rose to 50 percent, which would mean that there would be more than enough vaccine for anyone who wanted to be immunized.

Two other diseases – norovirus and whooping cough – are also widespread this winter and are contributing to the number of people getting sick.

The flu can resemble a cold, though the symptoms come on more rapidly and are more severe.

A version of this article appeared in print on 01/13/2013, on page A21 of the NewYork edition with the headline: New York Declares Health Emergency.

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Condé Nast Contracts Cut Author’s Share in Film Deals

It’s a dream tucked in the backs of many journalists’ minds: the article they write becomes a blockbuster movie and they reap a healthy share of the profits, a walk on the red carpet and — who knows? — maybe even an Oscar.

Fred Prouser/Reuters

Dawn Ostroff, president of Condé Nast Entertainment.

At Condé Nast magazines like Wired, Vanity Fair and The New Yorker, that wish has become reality for a small but steady number of writers. Condé Nast articles led to the movie “Argo,” which so far has generated $166 million in worldwide box-office sales, “Eat Pray Love,” which made $204 million in global sales and “Brokeback Mountain,” which brought in $178 million.

But now, Condé Nast, whose magazines are battling a punishing business environment, wants to capture more of the film and television profits, which previously went to writers who owned the rights to these works. The new contracts have angered writers and their agents who argue that it’s another cut at their already rapidly shrinking compensation.

“It doesn’t give authors the option or the alternative to go elsewhere for their movie and television rights, and therefore there’s no competition,” said Jan Constantine, general counsel for the Authors Guild who recently advised an agent negotiating one of these contracts.

According to copies of the various contracts provided and described to The New York Times, those exclusive rights ranged from 30 days to one year. The contracts also show that if Condé Nast decides to option the article, writers receive $2,500 to $5,000 for a 12-month option. If an article is developed into a major feature film, writers receive no more than 1 percent or $150,000 toward the purchase price.

Television programs and made-for-television movies are capped at even lower amounts, especially for less experienced writers. These arrangements are agreed to before an article has even been published.

“This is bottom-of-the-barrel pricing,” said one agent who refused to allow writers to sign the new contracts, but declined to be identified for fear of retribution toward the agent’s clients. “There’s no reason my clients who are the premier writers in the country should be shackled by this agreement that forces them to accept very low prices and also take their project off the market.”

Many writers for Condé Nast magazines like The New Yorker work under one-year contracts that lack basic employee benefits like a 401(k) retirement plan or health insurance, but they are allowed to keep the rights to their work. (By contrast, newspapers typically own the full rights to articles published by their employees.)

Some agents have warned writers not to sign the contracts because they chip away further at their income. But other writers have signed the agreements because they don’t want to lose the chance to have their byline appear in The New Yorker or Vanity Fair.

Writers interviewed for this article who have contracts with Condé Nast emphasized that in this economy they can’t simply go out and get a contract with another magazine.

One longtime contract writer used the proceeds from an option to pay for medical bills resulting from an injury caused during reporting in the Middle East.

Some writers predict that these contracts will create an even wider divide between Condé Nast’s most celebrated writers and its stable of lesser known but productive contributors.

“The people who really get the big options are not going to sign, and the people who don’t get the big options are going to be railroaded,” said one Condé Nast writer who asked not to be identified because of fears of retribution from the company. “What you are really taking is people’s self-respect.”

The plans to secure more of these rights started in late 2011, when Condé Nast formed an entertainment group to help it secure some of the profits its writers received when their articles were developed into film and television programs.

In the past, Condé Nast struggled to profit from many of the programs made about its publications. For example, it did not receive any of the $6.4 million made at the global box office for “The September Issue,” a documentary about Vogue.

In late 2011, the company hired Dawn Ostroff, previously president of the CW television network, to run the entertainment group. While a Condé Nast spokesman declined to talk about the specific contract negotiations, the spokesman said the company hopes to offer its writers more development options through the new entertainment group.

“As we expand into digital, film and television entertainment, we are excited to bring the extraordinary work of our writers and photographers to these platforms, showcase their content in new ways, and create expanded opportunities for their work to be enjoyed by new audiences,” the spokesman said.

But writers and agents remain skeptical of how many projects will actually be developed. Although Charles H. Townsend, chief executive of Condé Nast, said in October that the division is developing 15 projects, the entertainment group has not officially announced any of them. Some agents said they fear that Condé Nast does not have enough muscle in the entertainment world to make these deals happen.

“They’re not a film company,” the agent said. “There are many other companies who are not in the movie business who tried to do a land grab and it doesn’t work.”

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Beijing Air Pollution Off the Charts

Alexander F. Yuan/Associated Press

Fashionably masked women on Saturday outside an amusement park in Beijing. The World Health Organization has standards that judge an air-quality score above 500 to be more than 20 times the level of particulate matter in the air deemed safe.

BEIJING — One Friday more than two years ago, an air-quality monitoring device atop the United States Embassy in Beijing recorded data so horrifying that someone in the embassy called the level of pollution “Crazy Bad” in an infamous Twitter post. That day the Air Quality Index, which uses standards set by the United States Environmental Protection Agency, had crept above 500, which was supposed to be the top of the scale.

So what phrase is appropriate to describe Saturday’s jaw-dropping reading of 755 at 8 p.m., when all of Beijing looked like an airport smokers’ lounge? Though an embassy spokesman said he did not immediately have comparative data, Beijing residents who follow the Twitter feed said the Saturday numbers appeared to be the highest recorded since the embassy began its monitoring system in 2008.

The embassy’s @BeijingAir Twitter feed said the level of toxicity in the air was “Beyond Index,” the terminology for levels above 500; the “Crazy Bad” label was used just once, in November 2010, by an embassy employee using the Twitter account. According to the Environmental Protection Agency, levels between 301 and 500 are “Hazardous,” meaning people should avoid all outdoor activity. The World Health Organization has standards that judge a score above 500 to be more than 20 times the level of particulate matter in the air deemed safe.

In online conversations, Beijing residents tried to make sense of the latest readings.

“This is a historic record for Beijing,” Zhao Jing, a prominent Internet commentator who uses the pen name Michael Anti, wrote on Twitter. “I’ve closed the doors and windows; the air purifiers are all running automatically at full power.”

Other Beijing residents online described the air as “postapocalyptic,” “terrifying” and “beyond belief.”

The municipal government reported levels as high as 478 on Saturday in central Beijing, according to The Associated Press. It was not immediately clear why the number was lower, but even that level is considered hazardous according to the United States Environmental Protection Agency standards. (By comparison, the air quality index in New York City, using the same standard, was 19 at 6 a.m. on Saturday.)

Pollution levels in Beijing had been creeping up for days, and readings were regularly surging above 300 by midweek. The interior of the gleaming Terminal 3 of the Beijing Capital International Airport was filled with a thick haze on Thursday. The next day, people working in office towers in downtown Beijing found it impossible to make out skyscrapers just a few blocks away. Some city residents scoured stores in search of masks and air filters.

Still, there was little warning that the United States Embassy reading would jump above 700 on Saturday. Some people speculated that the monitoring system, which measures fine particles called PM 2.5 because they are 2.5 microns in diameter or smaller, might have malfunctioned once it got beyond 500.

But Nolan Barkhouse, an embassy spokesman, said the monitor was operating correctly.

It was unclear exactly what was responsible for the rise in levels of particulate matter, beyond the factors that regularly sully the air here. Factories operating in neighboring Hebei Province ring this city of more than 20 million. The number of cars on Beijing’s streets has been multiplying at an astounding rate. And Beijing sits on a plain flanked by hills and escarpments that can trap pollution on days with little wind. Meanwhile, one person hiking at the Great Wall in the hills at Mutianyu, north of Beijing, took photographs of crisp blue skies there.

Xinhua, the state news agency, reported on Dec. 31 that Beijing’s air quality had improved for 14 years straight, and the level of major pollutants had decreased. A municipal government spokesman told Xinhua that the annual average concentration of PM 10, or particles 10 microns in diameter or smaller, had dropped by 4 percent in 2012, compared with one year earlier.

Chinese officials prefer to publicly release air pollution measurements that give only levels of PM 10, although foreign health and environmental experts say PM 2.5 can be deadlier and more important to track.

There has been a growing outcry among Chinese for municipal governments to release fuller air quality data, in part because of the United States Embassy Twitter feed. As a result, Beijing began announcing PM 2.5 numbers last January. Major Chinese cities have had the equipment to track those levels, but had refused for a long time to release the data.

The existence of the embassy’s machine and the @BeijingAir Twitter feed have been a diplomatic sore point for Chinese officials. In July 2009, a Chinese Foreign Ministry official, Wang Shu’ai, told American diplomats to halt the Twitter feed, saying that the data “is not only confusing but also insulting,” according to a State Department cable obtained by WikiLeaks. Mr. Wang said the embassy’s data could lead to “social consequences.”

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