Apple: Revenue will be lower due to China (updated)

The US mobile phone manufacturer Apple (AAPL) has lowered its forecast for the fiscal-first quarter revenue outlook due to the China market. Apple says that it expects the revenue to be 84 billion dollars in the quarter. According to Bloomberg estimates, the revenue expectation was 91,3 billion dollars in average.

– While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China. In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad, Apple´s CEO Tim Cook said in an investor letter on Wednesday.

According to Cook, the other figures “remain broadly in line with our earlier estimates”. He also pointed out, that the revenue stream outside of the iPhone grew almost 19 % year-on-year. For example Wearables grew almost 50 % on annual basis. Also the services generated over 10,8 billion dollars during the quarter and according to Cook the company is on track to achieve its goal of doubling the size of this business from 2016 to 2020.

In spite of the cutting forecast, Cook expects to set all-time revenue records in several developed countries, including the United States, Canada, Germany, Italy, Spain, the Netherlands and Korea. – And, while we saw challenges in some emerging markets, others set records, including Mexico, Poland, Malaysia and Vietnam, he added.

Apple´s stock fell in after-hours trading about 7 % to 147 dollars.  Apple is to publish its final first fiscal quarter, ended 29th December 2018,  on the 29th January 2019.

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Tesla´s year deliveries 245.240 electric cars in 2018

The US electric car manufacturer Tesla (TSLA) announced that it has delivered totally 245.240 electric cars during last year. According to the company info, Tesla produced almost as many cars in 2018 as they did in all years together. The company published  its fourth quater production info on Wednesday.

– In Q4, we produced and delivered at the rate of nearly 1,000 vehicles per day, setting new company records for both production and deliveries.
Production in Q4 grew to 86,555 vehicles, 8% more than our prior all-time high in Q3. This included 61,394 Model 3 vehicles (in line with our guidance and 15% more than Q3) and 25,161 Model S and X vehicles, consistent with our long-term run rate of approximately 100,000 per year, the company said.

Tesla delivered the new Model 3 only in the North America, while the international deliveries in Europe and in China are expected to start in February this year.

-Our inventory levels remain the smallest in the automotive industry, and we were able to reduce vehicles in transit to customers by significantly improving our logistics system in North America, Tesla continued.

Tesla also announced that it will cut the car prises by 2000 dollars in the US markets.

– Moving beyond the success of Q4, we are taking steps to partially absorb the reduction of the federal EV tax credit (which, as of January 1st, dropped from $7,500 to $3,750). Starting today, we are reducing the price of Model S, Model X and Model 3 vehicles in
the U.S. by $2,000. Customers can apply to receive the $3,750 federal tax credit for new deliveries starting on January 1, 2019, and may also be eligible for several state and local electric vehicle and utility incentives, which range up to $4,000, the company wrote.

– Tesla’s achievements in 2018 likely represent the biggest single-year growth in the history of the automotive industry. We started the year with a delivery run rate of about 120,000 vehicles per year and ended it at more than 350,000 vehicles per year – an increase of almost 3X. As a result, we’re starting to make a tangible impact on accelerating the world to sustainable energy.

– Additionally, 2018 was the first time in decades that an American car – the Model 3 – was the best-selling premium vehicle in the U.S. for the full year, with
U.S. sales of Model 3 roughly double those of the runner up, the company said.

Tesla´s shares fell sharply during the first trading hours after the announcement, but gained slightly during the day and ended down 6,81 % to 308,88 dollars in Wall Street. The profit and sales figures for the last quarter of 2018 will be published later on, the day is not confirmed yet.

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US Markets down again – Treasury call

The US financial markets were surprised by the information that the Treasury Secretary Steven Mnuchin had called the country´s largest banks.  The question was about the market liquidity. According to the Treasury, the banks have confirmed that they have liquidity available for lending to consumers, business markets and other market operations.

The Treasury also confirmed that they will have a call on Monday, the Christmas Eve,  with the President´s Working Group on financial markets. The reason for this call is the large market volatility.

According to Bloomberg and Reuters business wires, the markets are really surprised and the big questions is, whether there is systemic risk or not.

The financial markets in the US have had several days downside trend and for example the stock markets have fallen over 10 % in December and are now at the lowest level since May 2017. Another issue on the agenda, is the Federal Reserve and its interest rates policy, also the question of the position of the Federal Reserve´s Chairman Jerome Powell.

The US Goverment shutdowns, which have been going on for three days now, are expected to continue, while no news are in sight.

Today, the financial markets are open only for a shorter time and for example Nasdaq will be closing at 1 EST and NYSE will be closing at 4 EST. On Christmas Day, the 25th December, the markets will be closed.

Today, the markets have continued their fall and for example the Dow Jones has fallen 1,97 %  to 22 003 points, S&P 500 -index  1,67 % to 2376 points and Nasdaq  1,16 % to 6259 points.  For example the markets in the Nordic countries and German are closed.

 

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Google and Microsoft – new video game streaming

Both big tech companies, Alphabet (GOOG:US)  with Google and Microsoft (MSFT:US), are on their way to build new video game streaming services for their customers. Google has “Project Stream” as a beta-version and Microsoft “Project XCloud” service. The idea in both of the services is to enable customers easy and working access to video game streaming.

-Scaling and building out Project xCloud is a multi-year journey for us. We’ll begin public trials in 2019 so we can learn and scale with different volumes and locations. Our focus is on delivering an amazing added experience to existing Xbox players and on empowering developers to scale to hundreds of millions of new players across devices, Microsoft comments.

Tech side is also experiencing a new event from Apple. According to company news, Apple (AAPL:US)  is having a new event at the end of October, 30th October, in New York. It is expected to cover news related to iPads and Macs.

Tech stocks have been performing well this year in the Wall Street and according to Bloomberg, Google´s one year return has been 8,78 percent, Microsoft´s 42,07 percent and Apple´s 36,88 percent.

 

Lifestyle Tech

Apple´s new Watch – fitness and health

Apple-Watch-Series4_watch-front-training_09122018Apple  Inc. ((AAPL) has today launched new series of Apple Phones and Watches. The Apple Watch Series 4 include the largest Watch display yet.  According to the company, the new Watch is fundamentally redesigned and re-engineered.

Apple says that the viewing area is over 30 % larger than before, but also the new technology improves the power efficiency – meaning that it should work the whole day on a single charge.

The Watch is having a new infographic display which enables users to have different functions at the same time. Like: air quality index, UV index, Heart rate, Activity, music, workout, breathe, weather.

According to Apple, they have developed the Watch further – to include the security of fall detection and Emergency SOS calls, if needed. The heart rate is monitored by  the Digital Crown Electrode in the Watch. The application is coming later this year, company says.

According to Apple, the Watch is becoming the information centre of users health data. It could include all this information:  activity, sleep, mindfulness, and nutrition.

It seems that the new Apple Watch is the first of its kind, a new Medtech product from Apple.

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CTA: Smartphones will soon rival TVs

Smartphones are becomming more and more common among the consumers in the US. According to CTA research smartphones will soon rival TVs as the most owned tech product with 87 % ownership versus 96 % for TVs. It is estimated that smartphones will match with TVs during the next five years.

New emerging tech categories include also for example Amazon Echo and Google Home. The ownership has risen to 22 percent.

Smartwatches are also gaining growth to 18 % of the US households. The increase is 6 % from year ago.

The CTA research was done during the Feb-March 2018 and it included 2016 persons.applewatch_nylon_photo_4

 

Lifestyle Tech

Xiaomi planning over 6 billion dollars IPO

Xiaomi, the Chinese smart-phone maker,  is planning to raise 48 billion HK dollars ( 6,12 billion US dollars) in the IPO in HongKong, the company said on Saturday. It would be the biggest Chinese tech IPO since Alibaba in 2014.

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The Company will offer about 2,18 bilion shares priced between 17 and 22 HK dollars. The offering is starting next Monday and ending at Thursday. Trading of the shares is expected to start on July the 9th.

According to the founder, chairman and CEO Lei Jun the company´s revenue has exceeded 100 billion yuan (15,3 billion US dollars). The company was founded seven years ago. Xiaomi will be investing in global expansion and internet ecosystem.

Xiaomi is an internet company with smartphones and smart hardware integrated with its IoT platform.

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