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.

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Business Tech

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.

Business Tech

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
Business Tech

Apple to record levels on the last quarter of 2015 – Apple Store to all time record

Apple (AAPL:US) announced today its fourth quarter results ending September 2015. According to the press release, the company reported a new record level of iPhones sales and operating income. Apple´s sales were 51,5 billion dollars (42,1 billion in the year earlier or 49,6 billion dollars previous quarter). Operating income was 14,6 billion dollars, growth from the 11,2 billion dollars a year ago and diluted EPS was 1,97 dollars compared to 1,43 dollars. The gross margin was 39,9 (38) percent. The company sold 48 000 iPhones units compared to 47,534 units in the previous quarter.

– Fiscal 2015 was Apple´s most successfull year ever, with revenue growing 28 % to the nearly 234 billion dollars, said CEO Tim Cook in the press release.

According to the company, the near future stays positive with gross margin estimate to 39- 40 percent. Apple said its Apple Pay introduction has grown very well in the US and UK markets and Apple Store gained new record levels. The sales numbers of Apple Watch are not published but the company said it is head of expectations. The sales in China declined a little and were 12,5 billion dollars compared to 13,3 billion dollars in the previous quarter. On the other hand, the company is heading to have 40 stores in China by mid 2016 and has published a new programm for renewable energy in China.

The company annonced a new strategic partnership with Cicso in September and they are looking for the corproate markets with IBM as well.

The Apple shares were down a little, 0,63 percent to 114,55 dollars in the trading. The company market cap is huge, 653 billion dollars.

Business Finance

Apple sold 47,5 million iPhones – sales fell in China

Apple (AAPL) sold 47,5 million iPhones during the last quarter ending in June. According to the company the revenue during that period was 49,6 billion dollars and net profit was 10,7 billion dollars, 1, 85 dollars per share. 64 percent of the sales came from international markets.

According to the company guidance for the fiscal 2015 fourth quarter, Apple expects the revenue to be between 49 and 51 billion dollars and gross margin between 38,5 and 39,5 percent.

The sales in China fell during the third quarter to 13,2 billion dollars compared to 16,8 billion dollars a quarter earlier. This is a clear sign of the Chinese markets economy slowdown.

– We generated very strong operating cash flow of 15 billion dollars and we returned over 13 billion to shareholders through our capital return program, the company said in the statement.

During the reported period Apple also increased its R&D expenses to 388 million dollars compared to 313 million dollars year ago. Also the cost of sales rose to 148 million dollars compared to 115 million dollars year ago.

Apple is not publishing its Apple Watch figures but the company states in the press release that they are very confident and happy about the market debut. The company is also going to launch its Apple Pay in the UK during the couple of weeks.

The company share fell to 130,75 dollars, down 1,0 percent in New York.

Business Tech

Apple sales jump – market cap to exceed 1000 billion?

Apple announced a record quarter today. According to the company, revenues jumped to 58 billion dollars, up 27 percent and net income was 13,6 billion dollars during the second quarter ending March 2015.

Earnings per share was 2,33 dollars, when the markets were expecting 2,16 dollars according to Bloomberg.

The Sales in China exceeded the US Sales for the first time. The company sold 61,2 million units during the quarter, of which 16,8 million in China.

The Sales of IPads were down by 23 percent to 12,6 million units. This is the fifth quarter of declining sales figures for tablets.

Strong results and Apple Watch have boosted new target price, which would mean the market value of 1000 billion dollars. Apple closed up 1,8 percent to 132, 65 dollars in New York.

Business Tech

Luxury smartwatch to enter the markets – TAG Heure the latest

During the first months of this year, there has been much speculation about the new smart wearables and if the luxury watch industry will join the trend or not. Now the latest to inform about new wearable smartwatch is the TAG Heure company in co-operation with Google and Intel.

“Swiss watchmaking and Silicon Valley is a marriage of technological innovation with watchmaking credibility. Our collaboration provides a rich host of synergies, forming a win-win partnership, and the potential for our three companies is enormous,” the company said in the press conference in the BaselWorld 2015  last week. According to the company this will mean greater utility and value for people.

The markets are waiting for the Apple´s Golden Smartwatch launch this April, which will give new items for market development.

 

 

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