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Is Apple Hiding Billions?
February 4, 2013 by admin
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According to Apple’s Q4 corporate filings, the company channeled $11 billion into tax havens in a single quarter. The Sunday Times claims the company is sheltering a total of $94 billion in tax havens. However, Apple’s activities are completely legal and the IRS can’t do anything about it.
But Apple’s tax avoidance strategy is not limited to the US. The company is avoided an estimated £550 million in tax in Britain back in 2011. A different analysis suggests a £550 million tax bill. Let’s not forget Kate Middleton is about to have a baby, and babies tend to cost money, so shame on you Apple.
American politicians, from both sides of the political spectrum, like to have their photos taken next to anything Apple. The company is often viewed as an American success story, as it managed to reinvent itself and come back from the brink to become the world’s second most valuable company.
Windows Phone Is Making Gains
January 29, 2013 by admin
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Microsoft’s Windows Phone mobile operating system is slowly increasing its market share in the UK, while Apple edges closer to archival Samsung.
That’s according to the latest numbers from research firm Kantar Worldpanel Comtech, which show that Microsoft’s Windows Phone has increased its UK market share from 2.2 percent to 5.9 percent in the past 12 months. The mobile operating system is doing even better in countries such as Italy, where it boasts a 13.9 percent market share.
Dominic Sunnebo, global consumer insight director at Kantar Worldpanel Comtech said, “At the end of 2012 the global OS picture shows Android on top, but clearly the rate of growth it experienced over the past year is beginning to slow as easy wins from first time smartphone buyers begin to reduce.
“It has been far slower than Microsoft would have liked, but Windows Phone is now starting to gain respectable shares in a number of key European countries.”
“However, its performance in the Chinese and US markets remains underwhelming. As the two largest smartphone markets in the world these remain key challenges for Microsoft to overcome during 2013.”
Kantar Worldpanel Comtech has also revealed that Apple is edging closer to rival Samsung, with each firm clinging to 32 percent and 35 percent of the smartphone market, respectively. Given that Samsung had a much healthier lead this time last year, these numbers seem to suggest that Apple’s iPhone 5 has sold better than rumors had indicated. However, all will be revealed during Apple’s quarterly earnings call tomorrow.
Apple and Samsung could soon have a third challenger on their hands, though, as research also shows that Nokia’s sales are improving in the UK smartphone market. Sales of the firm’s smartphones have increased 50 percent year-on-year, putting the firm’s market share at 5.2 percent.
Is NFC Catching On?
January 10, 2013 by admin
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Near Field Communication (NFC) is steadily gaining adoption in the U.S. for sharing data and music among smartphones, but the technology faces years of slow growth as a replacement for physical wallets.
NFC will take a minimum of three more years to grab hold as a technology that enables so-called mobile wallets as a replacement for credit cards and cash in the U.S., according to a consensus of five analysts. And by “grab hold,” these analysts mean being used by only 10% of mobile phone users to make digital purchases.
Gartner analyst Avivah Litan predicts that NFC payments will hit the 10% threshold in 2015, compared to the process of SMS (texting) payments that is expected to represent 50% of mobile payment volume globally in that same year. “We’re still on the edge when it comes to NFC innovation,” Litan says. “It will take a decade before it’s mainstream across the globe.”
Dozens of new smartphones that run Android, BlackBerry and Windows, and that include an NFC chip, launched last year. But Apple notably did not put NFC in its new iPhone 5 when the phone launched in September. That move “surely had a significant detrimental impact on industry adoption of NFC,” Litan says, given Apple’s influence in the mobile market.
Apple justified the move by saying that consumers already could use its Passbook app, which shows barcodes on the display, instead of NFC. The barcodes contain information that can be scanned by optical readers to let users board planes and redeem movie tickets — tasks that Apple notes are “the kinds of things consumers need today.”
Some have criticized Apple for omitting NFC from the iPhone 5, which has led to a widespread reassessment of NFC’s immediate future, especially in the U.S.
Was The Prize Stock For 2012?
If you wanted to know the IT company which was a rotten investment this year, you might be thinking Facebook, HP or RIM.
However according to Business Insider is starting to look like the so-called industry leader, Apple might have caused its investors the biggest headaches. More money has been lost in the past three months in Apple stock than has ever been lost in the tech disasters known as Hewlett-Packard and Research In Motion combined.
HP’s stock price peaked above $50 a few years ago, and now it’s trading at $14 and RIM peaked above $140 a few years ago, and it’s trading for $11. However Jobs Mob’s share price peaked above $700 three months ago and is now trading just above $500. This means that on a percentage basis, therefore, Apple’s stock is down much less than either Hewlett-Packard RIM but has cost shareholders a lot more money.
When HP investors have lost about $100 billion since the 2000 peak and RIM has lost $65 billion since the 2000 peak. Apple has cost its shareholders value in three months. What is more amusing is that about four months ago, I was lectured by an Apple fanboy who told me that the company is going to be worth a trillion dollars by the end of the year and he just invested more than $100,000 in the company. Looks like he would have been better off putting it on a horse.
Toshiba To Offer A 20-megapixel Image Chip
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Toshiba is gearing up for to offer a 20-megapixel image sensor for digital cameras that it says will be the highest resolution of its kind.
The Tokyo-based firm said the new chips will be able to support capturing 30 frames per second at full resolution. They will also be able to shoot video at 60 frames per second at 1080P or 100 frames at 720P.
Toshiba said it will begin shipping samples of the new CMOS chips in January, with mass production to begin in August of 300,000 units monthly. Toshiba is best known in components for its NAND flash memory, which it develops with partner SanDisk, but is also a major manufacturer of LSI and other semiconductors.
Digital point-and-shoot cameras are steadily falling in price, squeezed between brutal competition among manufacturers and the increasing threat of smartphones and mobile devices. While the number of pixels a camera can capture is not always a direct measure of the overall quality of its images, it is a key selling point to consumers.
The image resolution of top-end smartphones now often meets or exceed that of digital cameras. The Nokia 808 PureView launched earlier this year has a 41-megapixel image sensor.
The Japanese manufacturer said it has increased the amount of information pixels in the new chip can store compared to its previous generation of CMOS, producing better overall images. It has also reduces the size of pixels – the new 20-megapixel version has individual pixels that measure 1.2 micrometers, down from 1.34 micrometers in its 16-megapixel product.
Will Cisco Boot Linksys?
Cisco reportedly has hired Barclays to find a buyer for its Linksys business.
Cisco bought Linksys back in 2003 to get into the consumer networking business and the firm has put out some good products, most notably the WRT54G wireless router that was a favourite with technology savvy punters. Now Cisco is looking to offload Linksys as it continues to pull back from the consumer networking market.
Cisco has been cutting jobs and products such as the Flip video camera, as it wants to get back to the high margin enterprise networking business. Back in 2003, Cisco paid $500m for Linksys and got access to an established business that focused on producing consumer network equipment.
A decade later, it is being reported that Cisco will be lucky to get its $500m back. Cisco has been pulling out of its failed attempt to get into the consumer market and is now focusing on flogging both network infrastructure hardware and servers, though it is widely expected to be hit hard as software defined networks become more popular.
Unlike Cisco’s core enterprise business, Linksys products typically have low margins, and with its parent firm’s slowing sales growth, it is not surprising Cisco wants to offload it. Bloomberg’s sources said Cisco might find interest in buying Linksys from television makers, though they wouldn’t provide any more details.
Motorola To Close More Locations
December 19, 2012 by admin
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Motorola Mobility will shut down most operations in South Korea in 2013 as part of an ongoing restructuring under Google ownership.
The decision is estimated to displace about 500 jobs in South Korea and follows a decision made a month ago to close down most international Motorola websites and to lay off about 4,000 workers.
Motorola Mobility said in a statement that it began telling staff in South Korea on Monday about “plans to close most of our operations in Korea, including our research and development and consumer mobile device marketing organization.”
The statement said the changes “reflect our plans to consolidate our global R&D efforts to foster collaboration, and to focus more attention on markets where we are best positioned to compete effectively.”
Will Foxcomm Invade The US?
Foxconn Technology Group is weighing whether or not to expand its existing manufacturing operations in the U.S., in a move that could be linked with Apple’s plan to bring back Mac manufacturing to the country.
Foxconn made the statement last Friday after Apple CEO Tim Cook said in interviews with NBC and Businessweek that Apple would manufacture one of its Mac lines in the U.S. by the end of next year.
“So we’ll literally invest over $100 million,” Cook said. “This doesn’t mean that Apple will do it ourselves, but we’ll be working with people, and we’ll be investing our money.”
Analysts said Foxconn could be involved. The Taiwan-based firm is a major supplier for Apple, helping to build its iPhone and iPad. But much of that manufacturing is done in China, where Foxconn employs 1.2 million workers and labor costs are lower.
Without elaborating, Foxconn said it was considering the expansion in order to meet the needs of it customers, and to “leverage the high-value engineering talent” available in the U.S. market.
It’s unclear what kind of manufacturing operations the company already has in the U.S. An expansion in the nation, however, would face challenges, said Amy Teng, an analyst with research firm Gartner.
“From the financial perspective, I don’t see any advantage in why they (Foxconn) would assemble there, unless this is part of Apple’s plan,” she said. Labor costs in the U.S. are higher and it will be harder for the company to recruit U.S. workers for menial factory jobs, when compared to China.
Is HP Getting Sued?
HP is in the process of being sued by an angry investor who claims the company knew statements about its Autonomy acquisition were misleading and led the stock to fall.
A proposed class action lawsuit was filed in a San Francisco federal court. HP bought British software firm Autonomy for a $11.1 billion last year but made an $8.8 billion write-down on its acquisition claiming the company inflated sales with improper accounting.
Autonomy co-founder Mike Lynch has denied any wrongdoing. The lawsuit, one of the first to be filed by investors on the Autonomy mess, said HP hid the fact it gained control of Autonomy based on financial statements that could not be relied upon.
It claims HP had not revealed to investors that it tried to undo the Autonomy agreement before it closed because of the accounting issues.
Amazon Looking For Investors
December 6, 2012 by admin
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Amazon has issued its first bonds in nearly 15 years as it looks to borrow money while interest rates are low.
Amazon’s position as the undisputed king of online retail has put the company in a good position to take advantage of cheap borrowing rates. Amazon issued three, five and 10-year bonds at 0.38, 0.63 and 0.93 percent above US Treasury rates with investors clamouring to get a ride on the firm’s coattails.
According to the Wall Street Journal, Amazon’s $3bn bond issue has attracted more than $10bn in investor interest. According to ratings agency Moody’s, the firm will use the cash generated in the bond sale to make investments such as buying its corporate headquarters.
Standard and Poor’s rated Amazon’s debt as AA- and said there was minimal financial risk with Amazon. While Moody’s rated the bonds at Baa1, the agency also forecast strong growth in sales for Amazon in the coming years. It seems that Amazon, given that it hasn’t got any other bonds, is proving popular with bond investors despite reporting low profits and recently having been grilled in the UK Parliament over allegations of tax avoidance.
Amazon has been diversifying the ways it generates cash, and while it long ago moved away from simply selling books, the firm is a big player in cloud services through its Amazon Web Services division and is aggressively marketing its own brand of electronics devices in the Kindle range of ebook readers and tablets.