Smartphones and tablets maker HTC this morning said it foresees a huge drop in revenue (PDF) in the first quarter, citing “short-term difficulties” as it gears up to – reportedly – launch four new phone models at the Mobile World Congress later this month.

The Taiwanese company sees revenue dropping as much as 36 percent in Q1, to between NT$65 billion and NT$70 billion (roughly $2.2 and $2.4 billion) due to this “product transition”.

In PR speak, that sound something like this:

Despite short-term difficulties, momentum will resume in the upcoming product cycle driven by HTC’s brand strength, innovation, and design/engineering capabilities

The smartphone maker also said it expected gross margin to come in at around 25 percent, and operating margin at 7.5 percent, which is down from 27.1 percent and 12.7 percent in the previous quarter. Again, HTC says it expects these margins to “normalize” after the debut of the new phones.

In other words, HTC has a heck of a lot riding on these new smartphones selling like hotcakes, as it feels the pressure from Apple’s overwhelming iPhone success and an increasing number of manufacturers churning out and selling competing Android-powered devices by the millions.

Also read:

It’s About Time: HTC To Refocus Smartphone Efforts Around “Hero” Devices

Is HTC’s 20% Revenue Dip Last Month A Sign Of Things To Come?

Here are some of the past week’s stories on TechCrunch Gadgets:

To Heck With The Super Bowl: GOG Features Sierra Game Three-Packs For $5

iModela Adds CNC Milling To Your Home 3D Printing Arsenal

Swarming Robots Will Fly Menacingly Towards Your Loved Ones In Perfect Formation

Peavey Builds An Auto-Tuning Guitar

nanox: High-Quality iPod nano Watch Conversion Kit

Good Old Games is running a $4.99 sale on multiple Sierra titles including Space Quest and Kings Quest. The games come in packages of three and are compatible with Windows (sorry, Mac users, but here’s a consolation prize).

Each package includes three parts of each series, including Police Quest, Space Quest, and King’s Quest. This includes such hits as the original King’s Quest: Quest for the Crown rendered in beautiful 16-color CGA, a game that literally made my jaw drop when I saw it boot up on my friend’s XT computer in about 1985. That, my friends, was true gaming, before the days of rail shooters and endless RPGs.

Product Page via The Verge

Here are some recent stories on TechCrunch Gadgets:

The Zen Table Practices Mindfulness So You Don’t Have To

The Wheel: What Is The Foxconn Debate Really About?

iModela Adds CNC Milling To Your Home 3D Printing Arsenal

The CEO of Micron Technology, Steve Appleton, died in a small plane crash today in Boise, Idaho. He was 51.

Appleton worked at the company since 1983, starting on the night shift production line. He died piloting a Lancair experimental aircraft around Boise.

He is survived by his wife Dalynn and his children.

Micron is a major semiconductor supplier and most notably built a number of memorable laptops and hard drives during the early days of the dot com years. The company currently produces the Crucial and Lexar memory lines, among other hardware.

via Micron

Remember those little Zen rock gardens they used to sell for desks? So you could take a minute of your busy day to contemplate the void? Thanks to the magic of Kickstarter, you can build your own automatic, desktop-based Zen garden that will rake itself into endless patterns.

The toy is a little pricey – $999 for the “table” kit, half that for the desktop version – but the concept is pretty cool. It’s basically a robotic Etch-a-Sketch with a few tricks built in. To wit:

Hello? This is Zen Table?

The coffee table version is 56″ x 39″ x 19.5″ while the desktop version is 13″ x 9.5″ x 2 1/2″. Created by video game developer Simon Hallam, the Zen table lets you draw nearly anything into the silicone sand, allowing you to complete your mandala without having to get off from work. They’re about $4,000 below their funding goal, so get over there and get zenning!

Project Page

Maybe it was too thick, maybe it was too heavy, maybe you just didn’t like Honeycomb. Regardless of your reasoning, you may want to keep your eyes peeled on your credit score if you bought and returned a Motorola Xoom between March and October 2011, because your personal information may be in someone else’s hands.

That’s the story from Motorola, anyway. As it happens, the standard refurbishment process that occurs when a customer returns a piece of hardware didn’t go exactly as planned for some devices. Motorola estimates that out of batch of 6,200 refurbished Xoom Wi-Fi tablets, about 100 of them weren’t properly erased before they were resold in batches on daily deals site Woot.com.

Though the odds are in your favor that you weren’t affected, I doubt that same line of reasoning will provide much comfort to someone who was.

Motorola doesn’t go into much detail about how exactly the process went awry. Were the tablets simply not wiped before they were resold? Did some glitch cause user-stored data to remain on the device even after a factory reset? According to them, the “information that may be accessible to the purchasers of the impacted refurbished tablets may include any information that the original user elected to store on the tablet.”

That could potentially include media like photos and video, as well as “user names and passwords for email and social media accounts, as well as other password-protected sites and applications.” With tablets supplanting notebooks and PCs for a growing number of users, this sort of snafu is the last thing Motorola needs as they and bounce back from a disappointing fourth quarter, though they’ve been pretty forthcoming about the whole mess.

If you were one of the people who returned a Xoom between March and October 2011, let Motorola know — they’ll be setting you up with a free 2-year subscription to Experian’s ProtectMyID identity theft alert service. They would also like to have a word with you if you bought a refurbished Xoom from Woot, so mosey on over to their returns site to see if your new old tablet is one of the troublemakers.

Thirty spokes meet at a nave;
Because of the hole we may use the wheel.
Clay is moulded into a vessel;
Because of the hollow we may use the cup.
Walls are built around a hearth;
Because of the doors we may use the house.
Thus tools come from what exists,
But use from what does not.
- Tao De Ching

There’s a carousel in a small Cape Cod town that we visited this summer and the kids rode it a few times. The carousel is quite old and quite handsome and it makes a great diversion of an evening. I’m reminded now of trying to take pictures of the kids while they rode the carousel. For a while I’d wave and try to get their attention as they roared past, their laughter dopplering around the edge of the curve, and then, after four or five tries I’d give up and just watch. It’s a wheel, an endless circle, designed to delight and enthuse and distract.

Reading the recent back and forth between Stephen Fry – an Apple apologist – and Mike Daisey – an Apple user/abuser – I’m reminded of that carousel. The gist is this: Mike Daisey woke up the NPR-listening world with his long piece of Foxconn for This American Life. It was a great piece – dramatic, educational, and eye-opening – but it’s definitely nothing we haven’t seen before. Some could say that it was The Jungle of Chinese manufacturing, a tell-all with just enough outrage to make us rethink a great horror. But the problem is this: Daisey is an actor and knows how to bring out the story, just as John Steinbeck was a writer and knew how to populate the Dust Bowl with Christ figures. That doesn’t make the story less effective – it makes it more so – but it does make the story less true.

The problem is the endless circle of blame and apology. Daisey is correct in many of his assumptions, but offers a way forward that is currently unenforceable. But if you argue against Daisey’s points, you’re an apologist. But, as Paul Krugman writes:

We keep going over the same ground here. The argument can be delineated like this: Foxconn is an evil sweatshop. Apple is a huge Foxconn customer. They should change things. Two of those things are true, a third is false.

To be clear, I’m with the crowd that says that Apple is, at best, ignorant of Foxconn’s problems and at worst ignoring them. I agree things must change and Apple is in a great position to do it. But I don’t agree with the first point. I’ve seen sweat shops and Foxconn is a factory. If many of the major brands (I recall that Ford was a customer at one factory I visited) knew that their promotional USB keys were made in a building that looked like a gulag, they’d be skewered. Here’s hoping they are, one day. However, Daisey’s Foxconn story – written outside of the factory – and my own research, written inside the factory – don’t jibe. His discoveries that people get sick or are injured in factories are naive and I suspect his sample size of employees who approached him is far smaller than we realize. To go into the Foxconn factory is to see a place staffed by college-age kids and engineers who work 10 or so hours a day building electronics. There is no great Dickensian work house nor are there sad-eyed madonnas of the assembly line chained to the soldering irons. This isn’t the mundanity of evil – this is just mundanity.

Nor am I saying that Daisey’s interviewees are malingerers with an axe to grind. I’m sure their lives are ruined or much harder thanks to Foxconn. The value of Daisey’s efforts is his ability to give these people a voice in an environment that would normally quash that voice. He’s doing what artists must do – reflecting a time and place through his own lens.

My own opinion is simple: Apple needs to do more for the people in its manufacturing chain. I will not pretend that Apple can simply wave a magic wand and make every Foxconn employee rich and happy, but it has the cash and the wherewithal to further disrupt the Chinese supply chain and improve the lot of Foxconn’s employees. But I also agree with what one Gawker commenter said: “I believe Tim Cook will do more good for those employees (and already has, in point of fact) than Mike Daisey ever will.” Apple on the aggregate couldn’t care less about our existence nor does it deserve our undying respect and admiration. On an personal level there are plenty of folks inside Apple working and worrying about worker’s rights in China, but as an entity we are talking supply chains and price management. Apple makes excellent tools for our digital age, that’s it. To defend or excoriate the company is like screaming into the wind. However, through their constant rejiggering and improvements, they have essentially created a Western, ISO-compliant factory environment in a corporate culture that used to force underperforming employees to stand outside wearing a sign that said “I am a bad worker.”

What Daisey did is made us think. Did he do it the right way, using the right tools? Absolutely not. Will he improve the lot of the workers he interviewed? I doubt it. But will his efforts – and the efforts of many who came before him – help bring the Chinese worker out of penury? Sure, eventually.

I opened this piece talking about a carousel in Cape Cod, a delightfully bourgeois setting for a piece on poverty wage labor practices. I get to go to Cape Cod and put my kids on a carousel because my job involves dicking around on the Internet all day (I suspect Daisey’s does too). My one wish is that every Foxconn employee, at some point in their lives, will be able to sit down to an unhurried meal, chat with family, and maybe ride a carousel. I think it’s in Foxconn’s best interests to ensure that that happens – and soon – and I think that we’re nearly there. Things will get better, I’m sure of it, and I also feel that they already have.

If you're the type who prefer to open mail as soon as you get in the house—hopefully over a recycling bin so the junk mail goes right inside, this DIY mail shelf can give you a space in your foyer or entryway to stash the important stuff while reading, or leave your gadgets to charge before you leave the house. All you'll need is a small piece of wood and some magazine holders, courtesy of IKEA. More »

Upset that the Makerbot can’t produce solid, smooth objects for your home 3D printing pleasure? Why not give the iModela a look.

This CNC milling machine costs a little under $1,000 and uses a drill head to carve out 3D objects in solid plastic. The iModela is made by Roland DG (a subsidiary of the guys who make musical instruments) and has a very Japanese UI and aesthetic, which is pretty cool. They offer some interesting free models and a plastic sample kit for folks interested in getting started.

Some BoingBoing commenters are also recommending the DeepGoove1 CNC mill that can mill steel as well as wood and plastic. These things might not be quite ready for general home use yet, but the fact that you can grab a CNC machine for around a grand is pretty incredible in itself.

via BB