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

Highlights of the year 2018 – Brexit, trade talks and green finance

The year 2018 was a year of Brexit, electric cars and trade talks. It included special moments in the financial markets and in the company side. Green Bonds and Green Finance were getting more attention in the markets and trade talks and Brexit were the topics during the year 2018 along. Climate Change and low carbon landed also in the agenda of central banks.

Investors were also asking what is the role of the City as a global financial hub. Should it have its own rules in spite of the Brexit? In the financial hub competition, Frankfurt and Paris were the European cities to get more new financial offices as financial companies were moving some operations to the EU side.

The UK Parliament is expected to vote of the Brexit during Janury 2019 after very intensive debate about the deal during the year.

Climate Change has become part of the everyday life in the financial markets and for example one of the biggest insurance companies in the US, Berskhire Hathaway informed in February 2018, that it has got 3 billion dollars losses of the natural catastrophies, the hurricances in the US. Several central banks, including the European Central Bank and some Asian ones, have also agreed about the co-operation in the climate issues and how to monitor the impact on the markets.

In the tech-side augmented reality and ioT were the themes for the year. Apple, Amazon, Google, Tesla, Intel  and Samsung  were one of the tech-companies to deliver new services related to the new technology. On the other side of the topic, Facebook was dealing with the privacy issues globally. New tech- companies listed in the markets were for example Spotify and Xiaomi.

Year 2018 was a year of electric cars in many countries. The e-cars breakthrough with charging issues was one of the tech topics as well. Telsa founder Elon Musk was the leading industry sector figure as he estimated that Tesla would make one million cars by 2020 in February 2018.

Also the German automakers announced new investments and concept cars. For example the BMW Group launched an autonomous driving campus in Munich in March 2018.

Year 2018 was also a year for luxury goods and services. The Basel World 2018 -fair announced its good selling and for example the CEO of Hublot, Ricardo Guadalupe,  told ComteamPUB+ that the company expects double digit growth for the year and that the Chinese customers will be the leading segment.

In the debt markets the US Uber and Netflix issued their junk bonds to investors. Uber, the ride-sharing company, is said to plan an IPO for the year 2019 according to the secret filings to the SEC.

One of the biggest infrastructure projects ever, the China Silk Road, is getting more attention from the green investors side, while the organization made its first announcement of the green principles for the project co-operation and operators. The ancient Silk Road is expected to rise the GDP growth by 4 % or 240 billion dollars in the countries invlolved according to Credit Suisse analysis.

The aim of the Roman time Silk Road is to connect the western Europe with the eastern coast of China and to renew the infrasturcture in between. This means also that the 10 world largest container ports are located along the route.

Trade talks between different countries have continued lively during the year. US and China have been in the headlines, but also the EU with its agreement with Japan.  The political situation and rising volatility in the financial markets tell the direction for the next year. Geopolitical easing is needed.

Päivi Härkönen, co-founder, ComteamPUB+

 

 

Business Finance Lifestyle

New iPads and Macs from Apple – machine learning in focus

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Apple (APPL) has launched new iPads and Macs yesterday in New York. According to company info, these new models of iPads are built to the versatile use of virtual reality and machine learning.

– Apple´s next generation Neural Engine is built for advanced machine learning in everything from photography to AR, completing up to 5 trillion operations per second. This enables fast Face UD, faster plane detection for AR apps and other features that use real-time machine learning, the company press release says.

The new devises are in the shops from the November 7th onwards and the price range is 799 – 1149 US-dollars. According to Financial Times, some analysts say that this product launch is a major step for Apple to enhance the mobile and pc market.

 

 

Business

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