Tech Shares

Latest News About Tech Companies

Apple News

Apple Inc. specializes in design, manufacture, and marketing of electronic gadgets especially in the mobile communication industry such as personal computers, digital music players, media devices, sells various related software, peripherals, services, third-party digital content, networking solutions, and applications. Some of the company’s products include iPhone, iPad, iPod, Mac, Apple TV, iCloud, iOS operating system, including OS X. Having been incorporated in January 1977, the company has seen its portfolio grow, with some of its acquisition including WiFiSlam (a Silicon Valley startup) in March 2013, Locationary Inc. in July 2013, Hopstop.com Inc., Topsy Labs Inc., among others.

As of December 26, 2013, Apple’s shares on Nasdaq, trading under the symbol AAPL.O, stood at $563.90 USD. This signified a price change of $-3.77 (-0.66 percent) relative to the previous day’s closing. The volume of shares traded was 7,286,005 while the average volume number of shares traded translated to 11,285,333 shares. On the very day, the day’s high ($569.50) and the day’s low ($563.38) with EPS fixed at 39.75 and the PE (ttm) at 14.30. The historical earnings per share have been $6.43 USD, $13.87 USD, and $13.8 USD in the month of December 2011, 2012, and 2013 respectively.

Apple company profile presents unique proposition, with valuation ratios seen to diverge from those of both the industry and sector. For instance, the price earnings ratio, P/E Ratio (TTM) for the company is 14.23, not very close to that of the industry, 20.74, while that of the sector, 20.75 is almost the same as that of industry. P/E Low for the last 5 years has been 12.14, 12.26, and 11.50, for the company, industry, and sector respectively. On the same note, the P/E High over the last 5 years has been 20.09, 31.93, and 35.14 respectively. The company, industry, and sector beta stands at 0.84, 1.06, and 0.96 respectively.

Apple Inc.’s aggressive nature regarding marketing and selling of its digital content knows no boundary, as it will reach its target market whether through the iTunes Store, iBooks Store, App Store, and Mac App Store. Alternatively, it sells some of its beautiful and wonderful products through various channels such as its online stores, direct sales force, including value-added resellers, with great support from its Cupertino, California headquarters. The company also makes good revenue by selling third-party Mac, iPod, iPad, and iPhone compatible products and application software, printers, headphones, speakers and several other accessories via its retail and online stores.

The top executives of the company include Timothy Donald Cook, the CEO & company director; Jeffrey E. Williams, the Senior VP-operations,; Peter Oppenheimer, the Chief Financial Officer (CFO) & Senior VP); D. Bruce Sewell, the company Secretary, Senior VP & General Counsel; and Luca Maestri, VP & Corporate Controller. The US stocks experienced a rise on Monday 23, 2013, with both the Dow and S&P 500 climbing to all-time highs, courtesy of a distribution deal between Apple Inc. and China Mobile, which went successful to significantly boost the technology sector. Apple record a 3.8 percent rise to $570.09, which was its largest percentage gain over a three-month period. After the tech titan announced on Sunday 22, 2013 that it had signed a long-awaited deal with the China Company to sell its iPhone via the world’s largest network of cellular phone users, Apple will continue to get more billions of dollars in sales revenue.

Apple Earnings Report Q3 2014

By

Apple’s earnings rise despite a relatively disappointing quarter

Apple Inc. (NASDAQ:AAPL) released its third quarter earnings, revealing profit surge amidst declining iPad tablet sales. iPhone continued to be the driving force behind climbing profits following its strong demand in China.

The San Francisco-based tech giant reported strong sales of its Smartphone, selling 35.2 million units in the quarter, though analysts expected sale of 35.78 million iPhones. But still this is 13% higher than the number of units it sold in the same quarter last year.  The company attributed this to surprisingly increased sales in China, rising 28% over the same period a year earlier. Its revenue stood at $37.4 billion in the quarter that ended on June 28, boasting of $7.7 billion in profit.

Increasing iPhones Sales

iPhone continues to be Apple’s primary product. The company sold 35,204,000 iPhones in the three months ending June 2014. This was an increase of 3.962 million units in comparison to same quarter’s performance last year, when the company sold just 31,241,000. However, the figure shows subsequent decline from the preceding quarter that sold 43.719 million units.

In the company’s history, the quarter ending June quarter is often Apple’s slowest. So that’s why though the revenue was less than the $45.6 billion registered in the Q2 2014, the stock remained calm. Actually, the iPhone maker is pleased with the Q3 2014 results. The quarter-to-quarter decline is primarily because the rumours for iphone 6 (rumoured to have large display) have engulfed the market, and potential iPhone buyers opted to wait until the new model arrives.

But to explain the increased year-to-year sales of iPhone, the company suggest that its plot of selling iPhone 5C alongside its flagship has offer alternatives to customers. Also earlier models helped the company capture emerging markets at lower prices.

Declining iPad Sales

Apple sold 13.276 million iPad tablets in the just ended quarter. According to the company, the figure is well within its expectation, but it is lower than the 14.43 million units’ average analyst estimates. The iPad is a disappointment as its sale fell 9.2% short of the 12.27 million a year ago.

The declining demand of tablets, ipad included, can be attributed to availability of large Smartphone with displays as large as 5.5-inch variation. And to capture this lost market, the iphone maker is expected to launch larger iphones, but $100 costlier.

Impressive Mac

During the quarter, 4.413 million Macs were sold. This is an 18% increase, compared to the less than 3.754 million units sold in the quarter a year ago. The product outperformed all analysts, as the highest expected sale of 4.3 million Mac. The company has attributed this surprising development to its portables and very impressive growth of MacBook Air, which had its price recently cut.

Summary

Here is a rundown of Apple earning report:

  • The profit registered in Q3 2014 compares favourably that of the same quarter last year, as then Apple reported a net profit of $6.6 billion on revenue of $35.3 billion.
  • With a profit growth of 11.6%, the company affirmed a cash dividend of 47 cents a share for common stock effective at the close of business on 11th August.
  • The reported earnings per share, $1.28, beat consensus analyst estimates by five cents. Its $37.4 billion in revenues was $540 below what analysts had predicted, but it swelled 6% compared to Q3 2013.
  • Apple’s 39.5% gross margin outperformed the 36.9% in the same quarter a year ago quarter and its own metric of 37% to 38%. This was driven by reduced costs and increased magnitude of sales courtesy of upsurge in iphone sales.

Apple and IBM seal a Landmark Deal

By

Former Sworn enemies to Work together

Tim Cook, Virginia Rometty, IBM, Apple

Tim Cook and Virginia Rometty – picture courtesy of Networkworld.com

After decades of rivalry, Apple Inc. (NASDAQ: AAPL) and International Business Machines (NYSE: IBM) have decided to work together. A deal was announced on Tuesday that will see IBM create simple business apps for the iOS platform and sell iPhones and iPads to its customers.

The news that the two tech giants  have agreed to work together has caught many by surprise as no one would have imagine of such a case in the reigns of the Apple and tech icon Steve Jobs. These two companies have been rivals for over 3 decades. However, the demise of Steve Jobs and subsequent entry of Tim Cook, a former employee of IBM, has brought about policy change ensuing to this agreement.

This agreement was jointly announced by Apple Chief Executive Tim Cook and IBM CEO Virginia Rometty, nevertheless the two executives refused comment on the financial terms. So what is in this agreement, and what is in for both of these tech giants?

Apple’s Gains

The company will benefit from IBM’s computing services experience, which includes areas such as security, device and big-data management, data analytics and more. The partnership will also allow Apple to utilize the over 100,000 IBM consultants/sales workers. They,IBM will provide on-site support and service to Apple.

The iPhone-maker will also be linked to over 2,000 firms that are in business relationship with IBM. This could boost both sales of iPads and iPhones, as Apple has primarily dominated the consumer market as compared to the corporate markets.

IBM’s Gains

Over the past eight quarters, Big Blue has seen decline in its year-over –year revenues. However, it has not fully exploited the world of mobile devices. The tech company will be banking on Apple’s loyal customer base to aid in transition of its business software business to mobile devices. By convincing the business world to use Apple products, (primarily the iPhone and iPad), in their day to day operations, the company will be creating a client base for its own mobile device business software.

The two Tech Companies are Developing New Apps

As announced, the two companies have now joined hands and are making over 100 easy-to-use business apps for various industries. It is expected that the first collection of these will be available as soon as Apple launches its new mobile platform, iOS 8.

According to Big Blue boss Ms. Rometty, who has worked in her company for decades, this partnership marks the dawn of a new era and the end to poor use of smartphones as business tools. She said businesses only use Smartphone for mail and calendar. This deal will open a floodgate of new, serious business apps for the iPhone and iPad.

About Apple and IBM Rivalry

In the early 80s, both companies were producers of personal computers. The two companies were at throats of each other, and the feud can be remembered by the much publicized commercial dubbed “1984” which directly attacks IBM as uncreative firm that boring machines for the business world.

The competition ended almost a decade ago when Chinese giant Lenovo Group acquired IBM’s personal-computer unit. IBM has since positioned itself a software and computer-services provider. Apple on the other hand still produces personal PCs but has mobile devises as its main product lines. So this arrangement has come in later than it should have!

Siri : Apple Gets a Taste of its Own Medicine

By

Zhizhen Network Technology beats Apple in Copyright infringement Case

Siri, patent war, Zhizhen

How to install Siri-on iphone 4

Apple Inc. (NASDAQ: AAPL) is in the verge of withdrawing its products with Siri app from the Chinese market after successful litigation by Chinese firm Zhizhen Network Technology.

In February Apple sued the Patent Review Committee and the Chinese firm at Beijing No.1 Intermediate People’s Court, following an earlier unresolved case between the two companies. The Chinese firm had earlier sued the iPhone maker for infringing the firm’s voice recognition patent.

The Shanghai court trials opened in 2012 never gave the verdict on Zhizhen’s case against Apple.  This prompted Apple to write to the Patent Review Committee, under the State Intellectual Property Office, to annul the Xiao i Robot patent. Unfortunately the committee upheld it, forcing the iPhone maker to sue the Chinese company, and the committee as a respondent, for copyright infringement on its voice recognition software Siri.

The court decree reminds us of the Apple-Samsung war of patents, that has since seen Apple receive $120 million in compensation. However, Apple still went to court to block at least nine Samsung products from the market. Its current battle with Zhizhen has put the iPad maker in a similar position it put Samsung. Like Samsung, the verdict threatens Apple’s ability to sell its products with the contested features; in this case, it will not be able to sell products with Siri – the voice-controlled virtual assistant – in the China.

Apple wanted the court to declare the Shanghai-based Zhizhen’svoice-recognition patent is invalid. However, it failed and the Chinese firm has succeeded in blocking it from selling such products.

The SIRI Voice-Recognition Patent War

It all begun in June 2012 after the Apple developer’s conference. Apple announced that it would add Mandarin and Cantonese to its voice-controlled service’s list of supported languages. Already Zhizhen had Xiao i Robot, its own Mandarin-enabled version of voice-controlled service.

The Chinese firm had started offering this service in 2003 as a chat robot that operated behind shadows on instant messaging service tools. It later redesigned the chat robot into call-centre software. The software has been used by many companies and even the Chinese government.

In its litigation, Zhizhen notes that it was granted patent right in 2006, 2 years after applying for intellectual property rights to the original technology in 2004. Zhizhen’s voice-controlled software is now available for smart TVs, smartphones and auto-motives. The app is common among android users, but it also available for iOS. For instance, it is used in a smartphone app used to find stock prices, restaurants, and train times.

Siri’s Mandarin-enabled version was introduced in 2012 by Apple. However, Siri first came to light in 2007 by a start-up company called Siri. Apple acquired the start up in 2010, and begun using this technology in fall 2011 on the iPhone.

Apple holds that the Zhizhen used a different process to power its voice recognition.

Apple’s Take

The iphone maker’s spokesman said the company will appeal the ruling while also open to “reasonable discussions” with the litigant. It is highly unlikely that the company will withdraw its products with Siri voice recognition service.

Whatever happens, it seems Zhizhen Network Technology has revenged for Samsung. All in all, Apple has had a taste of its own medicine.

App Store Pays More Money than Play Store

By

App Store Pays More Money than Play Store

iOS, App Store

Last week at the annual Google Inc.’s (NASDAQ: GOOG) I/O conference, it was revealed that iTunes app store developers take home 4 times the amount Google Play Store developers take. Google Senior Vice- President Sundar Pichai told developers that the search engine giant paid android developers more than $5 billion over the 12 months. However how huge the amount may seem, it is merely half of what Apple is approximated to have paid its iOS developers.

In 2013 alone, Apple Inc. (NASDAQ: AAPL) shared more than $7 billion to app developers, and this year the company is expected to pay $12 billion or more to its developers. This is due to the fact that Apple products have a loyal customer base among the affluent. Thus, its customers spend more on applications.

Google Admits iOS Developers Earns More

Google admitted to its developers that their iOS counterparts earn more; nevertheless, android platform is slowly catching up. As we speak, there are about one billion active android users, while iOS users are slightly less than half of this, in fact 470 million users to be precise.

Apple has monetized its loyal fans better than Google, or perhaps the iOS platform users are much generous and willing to spend more on apps. If this trend is to continue, many app developers will continue finding Apple much attractive.

Despite the fact that android phones have outnumbered iphones in the market, the latter still dominates the U.S. and Canadian market. According to the data by Chitika, iOS 7 devices grossly dominate in two largest North American countries.

Mobile web traffic from iPhones stood at 84.3% in the U.S. and Canada as of February this year. The iPad, which also uses the iOS platform, is responsible for about 79% of the web traffic. This follows that Apple has monopolize the large part of the North American continent. The huge monopoly of the web traffic is partly the reason why iOS developers continue to take home more money than their android counterparts.

Apple is also targeting the Chinese market. Its yet to be released iphones with large screens are in line with the Chinese smartphone market demands. Android phones have enjoyed a good run in China so far because of their large displays which are preferred by the Chinese population.  Forrester Research data show that 40% of the android mobile devices sold this year had displays 5-inches or more. By producing large iphones, Apple will be eliminating the one big advantage that android users brag about. More iphone consumers mean more money for Apple, and more demand of iOS apps!

Conclusion

If the big spenders continue with their loyalty to the Apple brand, app store developers are still going to continue to mint more money than Google Play developers.  It has been two years and Apple has still kept the distance, the disparity in app sales.  Apple has for a long time targeted big spending customers, and this has and will for a long time be its greatest strength. If the trend continues, many play developers are likely to join the app store bandwagon.

Bigger iPhone Models in the Pipeline

By

The iPhone Maker is Making two new Models with Larger Displays

bigger iphones, iPhone models,Do you own an iPhone? Do you like the size of your phone or would you prefer a larger one? Bloomberg is reporting that Apple (Nasdaq:AAPL)will begin mass production of the largest iPhones ever next month. Without mentioning names of its source, the site claims that the people from the inside say this is in response to increased competition in the Smartphone market. So could big iPhone models be in the pipeline?

According to the leaking reports, which are also captured by The Guardian, Apple is working on two iPhone models with larger screens courtesy of its Chinese supply chain. One device is said to have a 4.7-inch screen, knocking out the current screen 4- inch size of iPhone 5S. The other device, also in the pipeline, is much larger and is expected to have 5.5-inch display. Both the two iPhone models are to be made available in the market in about two months.

Why Bigger iPhones?

The competition in the Smartphone market is increasing becoming more aggressive. Already other players such as Samsung Electronics and HTC Corp. (TPE: 2498) have introduced their models with larger displays.

In China, many consumers prefer smartphones with large screens. As indicated by statistics from Forrester Research, 40% of the Google Inc.’s Android mobile devices sold in 2014 had displays of at least 5-inches. So Apple is in order to introduce larger screen displays, if it wants to put the pressure on Google Android’s largest phone marker, Samsung.

The new iPhone models will help the company compete with the South Korean electronics giant, whose Galaxy Note 3 is about 5.7-inch  in display. The smaller of the two iPhone models, 4.7-inch screen, is about the same size as Samsung Galaxy S III released in 2012, or Amazon.com, Inc.’s (NASDAQ:AMZN)flagship – new kid in the bloc – the Fire Phone.

Other Features of the new iPhone Models

In addition to the change in size, the new models will be rounder and thinner compared to the previous models. There are also unconfirmed reports that the new models may also include:

  • 2.5-dimension curved glass
  • Enhanced sensors to detect different pressure levels, making the screen detect light and heavy touches.
  • A new OS (iOS 8)

New Powering Software: iOS 8

The new, yet to debut, iOS 8, has a host of new features for both the iPhone and iPad. The capabilities of the new software ranges from enabling users to use their mobile devices as remote to their home locks and lighting system, to monitoring their health.

Features of the new iOS 8 include:

  • Adaptive display that allows programs to fit in varying screen sizes.
  • Swipe functionally borrowed from iOS 7.

The iOS 8 is expected to debut alongside the new iPhone models in September.

Conclusion

iPhone is contributing more than 70% of Apple’s revenues and the company’s Chief Executive Officer Tim Cook must work through thick and thin to maintain  iPhone’s positive sales growth. The new iPhone models in the pipeline might help him achieve this, but there are reported complexities in their production. All in all, we expect Apple to sail through smoothly and the models will be available in retail stores come September!

iPads soon to Lose its Dominance to Galaxy Tablets

By

iPads soon to Lose its Dominance to Galaxy Tablets

nintendo-dsApple is likely to lose its tablet market dominance to its formidable rival Samsung (OTC:SSNLF). Samsung is set to launch its high-end tablet, Galaxy Tab S, to battle it out with Apple’s iPads with retina displays. The new product is expected to have a larger screen, and be thinner and lighter than any iPad in the market. This new product is likely to reignite the battle between these two electronics titans, after a gruesome battle in the iPhone market. Apple was the leading Smartphone maker until Samsung, courtesy of Google Inc.’s Android operating system, put up a strong challenge. As at now, Apple trails Samsung in Smartphone shipments and there is every chance that Samsung’s new tablet is likely to trounce Apple’s iPad.

Apple-Samsung Duel

Apple and Samsung have, since 2007, been fighting for the lucrative Smartphone market. The cut-throat competition has led to legal litigation arising from a number of copyright infringement disputes between the two companies. As at now, there is a pending case in which Apple wants a number of Samsung phones bared from the U.S. market. Over the last few years, the popularity of Google’s Android operating system has rapidly increased keeping the pressure on iOS. There has been a widespread belief that android is for the poor, while iOS is for the affluent. However, this notion is slowly fading, thanks to Samsung’s high-end Smartphone series. Over the past half a decade, the Smartphone market has seen the share of Samsung triple from around 10%. In Q1 of 2014, the South Korean conglomerate held the largest share of the Smartphone market, followed by Apple at 15%.

Galaxy Tab S

Samsung Galaxy Tab S, the most stylish and arguably the best Samsung tablet, is set to be unveiled in July. This is response to Apple’s iPad with retina display. Since Samsung has demonstrated that it is technologically endowed to compete with Apple’s standards as far as affluence, innovation and style are concerned; perhaps its flagship tablet will upset Apple. However, now Apple is still the dominant brand.

Specifications

  • Weight: 294g and 465g respectively
  • Thickness: 0.26”
  • Wi-Fi
  • Screen:  Super AMOLED screens with 2560×1600 resolutions
  • Expected Price: $399 and $499 respectively

The above features are far much better than what Apple’s iPad with retina display offers. The mini version of the iPad has  a thickness of 0.29”, weighs 331g and is available at a retail price of $399, same as Samsung Galaxy Tab S 8.4” version. The Samsung’s tablets seem to be incisively designed to take on the dominant iPad.

Conclusion

Samsung is banking on the success its Galaxy S smartphone series to set another battle front with Apple, this time round in the tablet market.  While Apple has remained predominantly the best tablet in the market, Galaxy Tab S brings a new challenge. And given the market recognition of the Samsung Galaxy S smartphones, this new flagship tablets will definitely be successful. It is undisputed that Apple is ingenious when it comes to style, innovation and quality. However, iPad and many other electronics products consumers shop for not just quality, but price. If this is the case, the Samsung provides both and Apple isn’t winning this battle.

Apple Confirms It is Buying Beats Electronics

By

The much publicized Apple beats deal is now official. Apple Inc. (Nasdaq:AAPL) has said it is buying Dr Dre’s Beats Electronics for $3 billion. The deal, which has drawn criticism and praise alike, will see Jimmy Iovine and rapper Dr. Dre work under Apple’s internet services segment headed by Executive Officer Eddy Cue.

The beats deal has been tipped to help Apple regain its music mojo. The company, which revolutionized digital music through iTunes, has been struggling in subscription music – a service that is slowly replacing digital music downloads. The high-end Smartphone maker is now set to pile pressure on the industry leaders, Pandora and Spotify.

The executives from both Beats and Apple said that the former will retain its brand and remain separate from Apple. Beats’ high-end headphones will continue to be sold in Apple stores, alongside Apple products.

Beats Streaming Music and iTunes

Some people may feel that keeping both Beats’ streaming music service and iTunes digital music store and streaming radio service is like duplication of projects. However, the two brands are completely different and will be extremely difficult to merge. So Apple has offered to play it safe by letting Beats continue operating independently.

Apple will be happy to have the legendary music producer Jimmy Iovine on their side. Since the demise of Steve Jobs, the iPad maker has gradually been losing touch with the major labels following the declining sales of albums and individual songs in iTunes music store. There is hope among shareholders and analysts that bringing in a music industry insider will help the company recapture the lost grounds.

According to Apple’s CEO, Tim Cook, Dr. Dre and Iovine are an incredible asset that his company is lucky to find. And while many people are concerned with the $3 billion price tag, Tim Cook is happy to have gotten a music streaming service that allows users to create playlist alongside a rare blend of professionals. The Apple boss praised the duo and was quoted by Forbes as follows:

“These guys are really unique…It’s like finding the precise grain of sand on the beach. They’re rare and very hard to find.”

Perhaps what he is not saying is that the talent the pair has is what iTunes was missing. And because there was no time to breed such talent from inside, so he had to acquire it through the beats deal.

Beats Deal – Apple’s Biggest Acquisition Ever

Apple and Beats have agreed the terms of acquisition as $2.6 billion will be paid in cash whereas the remaining $400 million, which is only $4 million shy of NeXT acquisition in 1996, will be in stock. Until Beats deal came around, Apple has avoided big buyouts, but possibly those days may be all gone. This is Apple under Tim Cook, not Steve Jobs! However, poaching talent has been one area where Silicon Valley firms outdo each other, and Apple just got Iovine on their side!

Beats deal is yet to be officially concluded and it expected to be finalized in this fourth quarter. This will be Apple’s biggest acquisition ever, dwarfing the NeXT buyout that brought back Jobs to “his” company.

Apple-Beats: Not yet a Deal!

By

Apple-Beats Deal could be on Shambles after Violation of NDA

Apple-beats dealThere are emerging reports that the much anticipated Apple-Beats deal may not happen as expected. The deal which involved Apple (Nasdaq:AAPL) acquisition of the famous Beats by Dre at a whooping $3.2 billion has stumbled following the violation of a non-disclosure agreement (NDA) by the Beats side of the negotiating table. Apple is said to have been angered by a video by Dr. Dre featuring Tyrese Gibson, in which Dre appear to confirm the deal.

A mutual non-disclosure agreement (NDA) is meant to keep proprietary information of the deal secret, but Dr Dre gave the public a hint. In fact, Tyrese went further to tweet a series of messages connecting to the deal. The messages have since been deleted, but one read:

“How did I end up in the studio with Dr Dre on the night his deal went public that he did with Apple…”

Apple Plays Cards Close to the Chest

Apple is known to operate in shadows and it likes catching the public by surprise. The fact that Apple-Beats deal has been much publicize is said to be affecting negotiations. According to Billboard, the iPhone and iPad maker was not ready to divulge information about the deal to the media, and currently it is not seating well with the publicity surrounding the whole thing.

Other Reasons Why Apple Might Backdown

While there are lots of rumours about the deal, there has been no official communication from either side. It is now emerging that Apple is grappling with how to absorb both rapper Dr. Dre and the legendary music producer Jimmy Iovine.  Apple is used to acquiring start-ups, so Beats has brought a new challenge. The possible options include full-time employees or just consultants.

Another challenge is how to price perhaps the greatest allure, the Beats Music streaming service. The service is not fully owned by Beats Electronics, and it is yet to record known revenues. The service was launched just launched in January, and though it registered over thousand subscribers a day in its early week, its valuation is not yet obvious.

Conclusion

It is unclear as to why Apple and Beats electronics are yet to announce the deal, but it is obvious that they are issues that have slowdown the negotiations. While the Apple-beats deal itself is also a rumour, it is generally good for Tim Cook and his team. Investors have already absorbed the news and most of them believe Apple is responding to slowing iTunes sales, so for the sake of Apple’s stock, the deal must happen. If this deals fails, it will be a major blow to the iPhone maker, with Google Inc.’s (NASDAQ:GOOG) Android continuously growing dominant.

Apple vs Samsung: $120 Million not Enough!

By

Apple Wants 9 Samsung’s Android Phones Banned for Copyright Infringement

Apple vs Samsung, SmartphoneApple Inc. (Nasdaq:AAPL) has moved to court seeking ban on sale of some of Samsung Electronics Co. Ltd’s (KRX: 005935) Android phones in a redo of Apple vs Samsung legal suit. The phones, Apple say, have infringed three of its patents. This comes in just over a week after the iPhone maker had signed a truce with Google Inc (NASDAQ:GOOG), which owns the Android platform, to drop lawsuits between them and work together in some areas.

On 2nd May, court awarded Apple $120 million out of the $2.2 billion it sought from the South Korean electronics giant for infringing its patent rights. The latter was found guilty infringing three out of five patents of which it used in Google’s Android operating system. The Apple vs Samsung patent issue revolve around iOS user-interface design used in iPad and iPhones.

Again, a few days ago Apple identified nine devices it wants barred in the U.S. as shown in a court filing with the U.S. District Judge Lucy Koh in San Jose, California.

Apple vs Samsung: Battle for Control of the Smartphone Market

It will be remembered that Koh presided over the first Apple vs Samsung U.S. legal battle between the two Smartphone makers. However, Apple which now trails Samsung in terms of shipment of Smartphones, will be kin to see how the judge handles the case given that she had twice rejected the company’s request. The iPhone maker believes that a sales ban would be more rewarding than being paid for monetary damages. Already the two companies have been engrossed in legal battles in at least four continents dating back to 2011.

The Apple vs Samsung legal battles are often associated with fight for dominance in the Smartphone market valued at approximately $338.2 billion. While the two are not the only players in the market, they control a chunk of it, with Samsung leading with 31% from 32% it held a year earlier, and Apple controlling about 15% , 3 % down from what it held earlier.

The market smaller players are from China and they include Huawei Technologies Co. and Xiaomi Corp. The two Chinese smartphone makers are producing feature packed Android phones and selling them at a cheaper price. They have markets in emerging markets in Asia and Africa, and this is why they are eating into the shares held by both Samsung and Apple.

Samsung Devices Apple wants Banned

According to the court filing, Apple wants nine Samsung Android phones banned in the U.S. market. They are:

  • the Admire
  • Galaxy Nexus
  • Galaxy Note
  • Galaxy Note 2
  • Galaxy S2
  • Galaxy S2 Epic 4G Touch
  • Galaxy S2 Skyrocket
  • Galaxy S3
  • Galaxy Stratosphere

Conclusion

In announcing their truce with Google, Apple spokeswoman was very clear on Apple’s patent litigation against Samsung. The truce, she said, was having no bearing in the iPhone maker’s case against Samsung. Nevertheless, it is important to note that Samsung is the leading user of the Google’s Android operating system.

Samsung’s newest flagship products, the Galaxy S4 and S5, have not been involved in the legal tussles and the company is counting on them in the battle for control of the ever swelling Smartphone market. Galaxy S5 went on sale March 27 in South Korea, but has tumbled following poor ratings. Tech experts, tech journalists and analysts are set for another Apple vs Samsung and waiting to see what it will bring, as the battle for the smartphone market takes centre stage.

Streaming Subscription may Boost Apple

By

Apple may Reinvent with Music Streaming Subscription

streaming subscription, apple. itunes

Apple store China

Anytime soon, Apple Inc. (Nasdaq:AAPL) may announce that it has acquired Beats Electronics founded by Jimmy Iovine and renowned rapper Dr Dre. The two companies are rumoured to have reached a deal and all that is remaining is official proclamation. Beats is a high-end headphone maker and music streaming service provider.  It is obvious that Apple is most interested in its music services!

But why would Apple be interested in another company’s music services when it has its own digital music store and a streaming radio service? There may be a lot beneath the carpet, but primarily the potential of music streaming subscription business may be the primary reason.

Potential of Music Streaming Subscription

According to data from the International Federation of the Phonographic Industry, streaming subscriptions soured 51% in 2013, contributing to $1.1 billion in the gross $15 billion spent on music. In contrast, digital downloads dipped 2.1%.

The data also show that streaming services fetches higher revenues that digital music downloads. An average customer spend $25 – $35 annually on music downloads, while such a subscriber spend at least $9 a month.

And since the labels royalties are merely a fraction of a cent per music streamed, the revenues in streaming subscription per user is higher than per user digital sales.

So why Choose Beats?

Beats electronic is renowned for its hardware, though the potential of its music streaming business cannot be overlooked. In its initial weeks of inception in January, beats’ music streaming service signed up over thousand followers a day.

When Apple acquires beats, it will be taking the ownership of the high-margin headphone business together with a music streaming service that has been developed by music industry insiders. In addition, the company will be bringing in top players in the music industry like the legendary music producer Jimmy Iovine. You may well say that Tim Cook’s company may have nipped its competition in the bud.

Others…

Prevent Over Dependency on iPhone

“Beats by Dre”, as the young Apple’s acquisition is widely known, will cost the iPhone maker up to $3.2 billion. And though Apple has such a huge amount of money on the coffers, it is now depending on its flagship product – the iPhone – more than ever!

Revenues from iPad are slowing down, the impact of stiff competition fromstreaming Subscription is starting to show signs in its music store and iPod is no longer nascent! Only iPhone is doing well with a double digit revenue growth, and now is contributing about 75% of the company’s total revenues.

While iPhone sales growth and dominance is a good thing, depending on a single product line is dangerous. And with the kind of competition the iPhone is subjected to by Android phone makers, there is need for Apple to reinvent its other businesses if its revenue is to keep growing, and music streaming Subscription may be the answer.

Compete with Streaming Subscription early adopters

Apple’s music business (iTunes) is slowly losing the love of record labels as the business of digital music downloads is slowly fading. Streaming subscriptions is the current trend in the music industry. iTunes radio, Apple’s 8 month old answer to this development, is also faltering. Therefore, there is every need for the company to re-strategise to compete with early adopters like Spotify and Pandora Media Inc. Conceivably, beats electronics may be it ripostes as it is already in music streaming subscription business and it will hit the ground running!