Google to buy wearable Fitbit in the US

The US tech company Alphabet Inc´s Google has made 2,1 billion dollars offer to buy the wearable fitness company Fitbit (FIT) in the US.  According to the companies, Google is investing more in its Wear Os to balance the wearables markets with Apple Watch, Samsung, Huawei and Xiaomi alike.

The deal is expected to face anti-competitive process by the US authorities related to consumer data and privacy. According to Google (GOOGL), the consumer data is kept well and no Google adds will be included. The deal is expected to be finalised during the next year.

The offer, which gives an 19 % premium to Fitbit´s share price compared to Thursday, means an offer of 7,35 dollars a share. Reuters reported on Monday that such a deal is proceeding and after that the share price has increased about 40 % in New York.

 

 

 

Business Finance Tech

Apple revenue 64 billion dollars – EPS 3,03 dollars Q4 2019 (updated)

The US tech company Apple (AAPL) published its fourth quarter earnings release today. According to the info, the company revenue increased 2 % to 64 billion dollars and earnings per share to 3,03 dollars (+4 %) compared a year ago.

-We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad,” said Tim Cook, Apple’s CEO.
-With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store, he continued.
The service segment showed all time high revenue of 12,5 billion dollars and the international sales were about 60 % of groups total sales.
Apple said its iPhones sales were 33,3 billion dollars during the fourth quarter compared to 36,7 billion dollars in the previous year. 12 months iPhone sales were 142 billion dollars.
The sales of iPads were 4656 million dollars and annually 21,2 billion dollars. The sales of wearables like Apple Watch, were 6520 million dollars and annually 24,5 billion dollars. Services sector also increased to 12,5 billion dollars in the fourth quarter and the 12 month sales were 46,2 billion dollars.
Apple spent 4100 million dollars in R &D during the quarter and totally 16,2 billion dollars in a year.
The operating income for the quarter was 15,6 billion dollars and for the whole year 63,9 billion dollars. Net income was 13,6 billion dollars.
Apple is estimating that during the first quarter of fiscal 2020, the revenue could be between 85,5 – 89,5 billion dollars and gross margin between 37,5 – 38,5 %.
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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

Wearables to increase the mobile payments

Smart watches and wearables are to increase the use of mobile payments in all continents during this year 2018. According to several studies the growth of smartphones together with improved customer experience and faster transactions will increase the mobile payments nearly to 100 billion dollars.

The increase is showing remarkable growth while the mobile payments were estimated to be 35 billion dollars last year. The estimates are from Juniper Research. Apple  is leading the way after the launch of the ApplePay in 2014, but there are also other options like Samsung & Anroid Pay and Xiaomi, ZTE and Lenovo might also enter the new market with their own device software.

This research does not cover the mobile payments for example from the banking sector. Mobile payment software could net over 500 billion dollars in payments by 2020.

The US smartphone penetration exceeded 80 % last year and according to IDC cumulative wearable device shipments are expected to surpass 750 million units by 2020. The declining price trend in the devices will make wearables more affordable to a larger crowd and the real boost in volumes in smartwatches is expected next year with the more use of 5G.

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Tech

US tech sales to new record this year – 351 billion dollars

The US tech sales will make a new record this year. According to CTA, the Consumer Technology Association, the revenue will grow to 351 billion dollars. This is 3,9 % increase from year earlier.

According to the study, the growth will come from Smart Home, Smart Speakers and Virtual Reality products & services. Although the growth is strongest in the emerging technologies,  the volume sales come from the “old products” like smartphones, + 3% increase to 62,9 billion dollars or automotive electronics +5,1 % to 15,9 billion dollars.

Amazon Echo and Google Home -type smart speakers will get 3,8 billion dollars revenue, increase with 93 %. Smart Home sales will increase by 34 % to 4,5 billion dollars and virtual reality services + 18 % to 1,2 billion dollars.

Wearables, like smartwatches and health & fitness & sports products, will get 1 % increase to 6,4 billion dollars.

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Business

Trending topics at CES2017

The Consumer Technology Association (CTA) is arranging the world leading Tech fairs in Las Vegas during this week. The trending topics include Internet of Things integrated with home devices – but also cyber-security, mobile payments, 5 G network, artificial intelligence, robots and connected cars are gaining more attention.

According to CTA, it is expected that this year there will be around 165.000 attendances, 6500 media representatives and 3800 companies – all celebrating 50 years of the exhibition.

One of the growing interest area is also about the integration of technology, innovations and sustainability issues. This Green Tech sector is growing also in Las Vegas and for example companies like Ericsson (ERIC:US), LG Electronics (066570:KS) , Panasonic (PMM:MK), Samsung (SMSN:LI) and Sony (SNE:US) are the consumer tech companies sharing their best practises in these issues. Most of the cases it is about the energy efficiency, but also about the innovations to daily life and the wellbeing.

“Innovation is measured by how many people can share, use and experience it. Thanks to our long and rich history in connectivity, we are deeply familiar with the feedback loop between innovation and experience. CES is always a fantastic stage for innovation, so we are excited to be sharing the latest connectivity technology, 5G, with partners and our mutual customers”, says Ulf Ewaldsson, Ericsson’s Chief Strategy and Technology Office in the company press release.

Companies are expected to make the major product launches during Wednesday the 4th, a day before the official opening of the fairs. This year is also important for the wearable industry and how the new product segments will find new customers and combine luxury, intelligence and usability.Print

 

 

Business Lifestyle 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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