Stocks started up in Wall Street – Tesla and Apple in headlines

The financial markets ended slightly up on Wednesday trading in Wall Street. The year´s first trading day started with a small downside, but at the end of the day, the direction was positive with all the major Wall Street indices.

The electric car manufacturer Tesla (TSLA) announced its production figures from the fourth quarter and according to the information, the company produced 63.150 Model 3 Sedans during that period. Totally the company annual electric car production was about 245.200 in 2018. The official quarter figures are still to be published, the day is not yet confirmed. Tesla shares fell sharply first, but ended down 6,81 % to 305,50 dollars due to the published price cuts. The company informed that the car prices will be lowered by 2000 dollars in the US markets.

The second surprice for the markets was the mobile phone manufacturer Apple (AAPL), who said that the revenue forecast will be lower due to the economy situation in China. According to CEO Tim Cook, the China economy slowdown has been greater than earlier expected. Apple´s announcement sent the stock price to about 7 % decline.

Apple´s announcement was the first big information about the China economy and the trade talks situation. The President Donald Trump and his Chinese collaque President Xi Jinping are expected to continue the talks next week. During the holiday weekend president Trump indicated that the US and China trade talks have had positive signs.

In the US markets, the goverment shutdowns have continued and after the political leaders meeting the outcome was, that the shutdowns are expected to continue.

In the UK, The Brexit situation is the same as Prime Minister Theresa May said that the situation is not changed. According to Financial Times, PM May is going to have discussions with some of the European leaders during this week.  The UK Goverment has urged pharma companies and supermarkets to reserve enough drug and food stock in the case of no-Brexit. The UK Parliament is expected to vote on the deal in the middle of January.

Dow Jones -index ended up 0,08 % to 2344 points, S&P 500 -index ended up 0,12 % to 2509 points and Nasdaq-index ended up 0,46 % to 6665 points. In London the FTSE 100 -index was up 0,09 % to 6734 points and in Germany the DAX-index ended up 0,20 % to 10580 points.

In Asia the Wednesday trading was on negative side, while in Tokyo the stocks fell and Nikkei-index ended down 0,31 % to 20014 points and in Hong Kong  the Hang Seng index declined 2,77 % to 25 130 points.

Euro declined 1,04 % to 1,13 dollars as did the UK sterling, 1 % to 1,26 dollars.

Business Finance

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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Business Tech

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.

Business Tech

Apple to reach records with average selling price

The Californian tech company Apple  (AAPL) is making against all odds. Company announced on Thursday its quarterly figures, which showed that the average selling price hit new records during the last three monts ending on December. The new average selling price was 796 dollars.

According to the company press release, the most popular iPhone was the iPhone X. Although the shippments were down by 1 %, but the revenues were up 13 % to 88,3 billion dollars. This is also all-time-high record.  The diluted EPS was 3,89 dollars, up +16%.

Apple sold 77,3 million iPhones during the period and 65 % of the sales came from international markets. Company is also making a quidance for the next period saying that the gross margin would be 38-38,5 %.

Other products, which include also Apple Watch & Apple TV, were up +36 % from the year earlier and were 5,4 billion dollars. Research and Development were 3,4 billion dollars, up nearly 19 %.

– We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” said Tim Cook, Apple’s CEO.

The company stock ended in New York to 170,85 dollars, up 0,21 %. Apple´s market cap is 853 billion dollars and return has been over 32 % during the year.

 

Business Tech

The US Smartwatch markets to get new devices

The smartwatch industry seems to be growing in the US. Two companies have launched new devices to consumers in recent weeks. And for example Apple ((AAPL:US) and Nike (NKE:US) have announced their new model called NikeLab, which sales will start next week in the Nike´s webstore.

The Chinese ZTE smartwatch Quartz is available from the third largest operator, T-Mobile in the US. The smartwatch is powered by Android Wear 2 & Qualcomm Wear 2100 platform. According to the company release, consumers can connect virtually when they like and where they like, while the smartwatch is operating all time in the T-Mobile network. This smartwatch is available from the T-Mobile stores from tomorrow on and the pricing is just under 200 dollars.

Verizon (VZ:US), the US telecom company, has launched an exclusive smartwatch called Wear 24. And it can be used apart from the smartphone like the ZTE´s rival. This smartwatch costs 299 dollars and 349,99 dollars without the contract. The Verizon Wear has different colors ranging from stainless steel to rose gold. This model also includes Android Pay.

Verizon released also its first quarter results today.  – Our first-quarter results again demonstrated that customers value a high-quality network experience,” said Chairman and CEO Lowell McAdam.

– To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fiber network capabilities, began offering an unlimited pricing option and expanded our opportunities in new markets. We’re executing on strategies to capture future growth and create long-term shareholder value, he said in the statement.

In the financial markets analysts are expecting some kind of M&A deal with for example Comcast, Disney or CBS. Verizon has said it is open to talks with them according to Bloomberg News. If there would be some kind of a merger, it would change the landscape of media and telecom companies in the US totally. The market value of Verizon is about 197 billion dollars.

Business Tech

Apple to focus its UK operations in Battersea

Apple (AAPL) is leasing about 500.000 square feet for its new UK headquarter in London. The new location is in Battersea Power Station, on the South Bank of River Thames.

This new location will be the main office for the company operations in the UK and about 1400 employees will move there in 2021. Apple will have the top 6 floors of the buildings, of which 3 floors will be for shops. The office designers are not yet appointed.

In the transaction Knight Frank and CBRE advised the BatterSea Power Station Development Company and Cushman & Wakefield Apple.

Business Tech