Apple building closed-loop supply chain

 

Apple (AAPL:US) is building a closed-loop supply chain in order to minimize the impact in environment. According to the company Environmental Report 2017 ” we’re going deeper to pioneer a closed-loop supply chain, where products are made using only renewable resources or recycled material to reduce the need to mine materials from the earth. ”

This statement also highlights the need to decrease the use of conflict minerals in the mobile phones & devices production. Apple´s total greenhouse gas emissions last year were 29,5 millions, 77 % was from manufacturing, and the carbon emission per product has decreased to 97 kg versus 137 kg in 2011.

Apple is investing in green data centers and the company can say that all iMessages, Facetime and Siri are run by renewable energy. And the same target is with the real estate investments & projects.

Accordign to the Report, Apple Park, the new corporate headquarter, is on track to be the largest LEED Platinum–certified building in North America. Over 80 percent of the new campus is open space with more than 9000 drought-tolerant trees and it is operated by renewable energy.

– We’re pushing our manufacturing partners to join us in the fight against climate change. Seven major suppliers have now pledged to power their Apple production entirely with renewable energy by the end of next year, the company reported.

Partners committed to 100 percent renewable energy for Apple production by 2018  are: Biel Crystal Manufactory Ltd. • Catcher Technology • Compal Electronics • Ibiden • Lens Technology • Solvay Specialty Polymers • Sunwoda Electronics

 

 

 

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Porsche Design: Developing a car-integrated luxury watch for 2020?

 

The German Porsche Design, a company in the Volkswagen Group ((VOW:GR) is on the road to develop something new,  a car-integrated luxury watch? According to people familiar with the matter, this integrated watch would be part of the company´s innovative thinking and design.

The technology transfer will take its time and this would mean that the company might be launching this connected watch at the same time as the parent company Porsche, is starting the deliveries of its first electric cars, Mission Es. This car would be totally electric and new innovation from Porsche.

According to sources, Porsche Design is  not developing a smartwatch, but they are developing a watch that can be integrated to cars., “Porsche Design is transferring car´s technology into watches and that is why they do not speak about smartwatches”, the sources said to pubplus.club.

Porsche company has been developing its Digital Lab with thousands new employees during the last years and the company says that they will invest in the digital transformation with double-digit sums of their annual revenues. Last year Porsche´s turnover was 22,3 billion euros and the result before taxes 3,7 billion euros.

For example Apple (AAPL:US) is developing its own electric car with different functions that can be integrated. The main idea with Apple is that they would like to have a car, which could be operated with Apple phone. The functionality and usability of the iPhone for driving would be integration of future-looking car technology and autonomous cars.

Porsche Design is not doing the same, but vice versa while they want a smartwatch or connected watch with a car integration.  They know that Porsche drivers like to drive the car and feel the movement but on the other hand in long distance driving some autonomous functions might be good.

The parent company, Porsche, based in Germany, near Stuttgart, has over 8000 R&D employees. According to the company strategy “The sportscar of the future will blend the history and values of the Porsche brand with innovative technologies, while at the same time ensuring sustainability. In achieving this, topics such as electromobility, digitalisation and connectivity will play an important role.”

Porsche Design launched its new Monobloc Actuator watch during the BaselWorld. In this model, titanium, which has been used in engine construction for over 50 years, is given an entirely new form. This chronograph has a single rocker switch enabling longer durability and lifetime. They are in shops from May 2017 and prices start at 6000 euros.

Porsche Design was founded in 1972 with the design innovations and inspirations from motorsports. The brand philosophy is characterised by combining design expertise and engineering excellence.

 

Päivi Härkönen

 

Porsche Design MONOBLOC ACTUATOR TitaniumBlue_3DSoldatPorsche Design Timepieces:

1972 – the first entirely matte black wristwatch

1978 – the first watch with an integrated compass

1980 – the first chronograph made entirely from titanium  

2004 – the first watch with mechanical-digital display

2017 – the next innovative watch concept

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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.

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Apple Watch sales exceeded the first year sales of iPhones

According to Apple (AAPL),  the sales of Apple Watch have exceeded the first year sales of iPhones during their first year after the product launch. The company spokesmen said that they are very optimistic about the smartwatch and its development. Company made their remarks in the conference calls with financial markets at the end of April.

Apple also marked the new colors and styles of the Watches and said that 94 percent of the smartwatch users are very satisfied with the product itself.

The second quarter (ended March 26)  of Apple was the first time when the company noticed the overall smartphone stagnation globally. The CEO Tim Cook pointed out, that they have seen many swifters from another platforms and that they believe the markets to show more growth again. The company said it will also stay active in the capital markets in M&A  with products/services that can enhance their own offering.

Apple Services, like Apple Music and Apple Pay, showed rapid growth during the quarter and the company said that the growth is one million users per week in Asia. The company has sold over one billion devices with iOs operating system.

The company share price closed to 92,72 dollars last Friday in New York,  down 25 percent year on year.

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Musk: Tesla to become the world leader in manufacturing

According to Elon Musk, the CEO of Tesla (TSLA:US) the company is aiming to become the world leader in the manufacturing processes in the automotive industry. Speaking in the company quarterly meeting, Mr Musk said that he believes in manufacturing and that the most potential innovations in the automotive industry is there.

– We believe in manufacturing and that is why Tesla wants to become the leader in the manufacturing in automotive industry. We believe that in production there are more potential for innovations than for example in design. We are increasing our vertical integration, he said on Wednesday.

He also explained about the problems in the manufacturing process at the moment with 6000-7000 components and how it will affect the whole manufacturing process, timetable and quality if some of the components are missing. – That is also why, we are exploring ways, how to minimize risks in our production, but also that our R&D cycle is 2-3 years, not 6 years, he stated. This also means that the current supply chain has to adapt to the new cycle of doing things.

Tesla also announced that they are expecting to reach the mass production by the second half of next year and that would give the company the benefit to scale rapidly by using modern technology and design.

In the interim report Tesla also estimates that they will be producing 500.000 cars by 2018. Mr Musk was expecting that 100 000 would be S-cars, 150.000 X-cars and the rest of, 250.000 the new model 3-cars.

Musk did not want to comment about the possible new production plants in the near future. – It is obvious that California is not the best possible place for shipments for example to Asia. This will happen at some point, when we have reached the mass production and it is up and running, he said. In the first quarter report the company says it will open more than 70 new sales & service locations globally.

The orders of the new Model 3 have reached 400 000 and 93 % of the customers are new, according to the company.  Musk also pointed that the way Tesla is differentiating from its competitors like Google and Apple, is that they have their own production and he believed that by this way Tesla can attract the best manufacturing talent as well.

During the first quarter, the company revenues were 1,1 billion dollars and net loss was 278 million dollars. The net loss per share was 2,13 dollars compared to 2,44 dollars at the year end. Elon Musk did not want to disclose any plans for new capital for this year. Tesla share jumped after the full-year delivery forecast, but ended down 4,2 percent to 222,56 dollars in New York.

IMG_3046-Edit_HiRes

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Apple in the economic unstability -sales fell

Apple´s (AAPL) second quarter net sales were 50,5 billion dollars compared to 75,8 billion dollars in the previous quarter. Net sales were hit by declining sales of iPhones, but also other iproducts. For example the sales of AppleWatches showed declining trend.

International sales accounted for 67 percent of the quarter’s revenue and the global economic unstability was showing in the figures. All the major sales areas were showing declining trend, also the Greater China. The sales in Japan were more stable.

– Our team executed extremely well in the face of strong macroeconomic headwinds, said Tim Cook, Apple’s CEO in the press release.

– We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices, he continued.

The services sector showed 20 per cent increase annually but 1 per cent decline from the previous quarter. This sector includes for example the Apple Care and Apple Pay -services. This is also one of the areas the Finnish Nokia announced yesterday a small acquisition with healthcare it-company.

Apple is estimating that the revenue for the third quarter would be between 41-43 billion dollars and the gross margin between 37,5 – 38 percent, while it has been 39,4 percent in the second quarter.

So, Apple is not expecting any big changes in the economic outlook for this year and the company said that it is focusing on R&D, but also acquisitions. The company share fell 8,5 percent to 95,51 dollars after the report.

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Apple estimates slowing margins for the second quarter

Apple (AAPL) today announced financial results for its fiscal 2016 first quarter ended December 26, 2015. The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share.

On the other hand the company now estimates the gross margin to be lower during the second quarter 2016 than it was in the previous quarter. Gross margin is expected to decline to 39 – 39,5 percent from 40,1-39,9 percent.

Apple sold 74 779 i Phones during the quarter compared to 48 046 units during the previous quarter. International sales accounted for 66 percent of the quarter’s revenue. The sales in China was 18,3 billion dollars during the quarter, an increase of 14 percent.

The company is not disclosing sales figures from Apple Watch, but that division posted a 4,3 billion dollars sales during the quarter compared a sales of 3,0 billion dollars a quarter earlier.

R&D was up to 2,4 billion dollars during the quarter compared to 1,9 billion dollars earlier. Also the share-based compensation R&D expenses were up to 466 million dollars from 374 million dollars. It is widely expected that Apple is developing an electric car in California.

Apple´s guidance for its fiscal 2016 second quarter:

  • revenue between $50 billion and $53 billion
  • gross margin between 39 percent and 39.5 percent
  • operating expenses between $6 billion and $6.1 billion
  • other income/(expense) of $325 million
  • tax rate of 25.5 percent
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