In yesterday's report titled "Samsung Profits Plummet 24% on Slow Smartphone Sales" we noted that Samsung stated that a market slowdown and heightened competition had resulted in a build-up of unsold smartphones in China and Europe. Due to the result of Samsung's Galaxy S5 inventory, we learn today that Taiwan's component makers now claiming that Samsung has drastically cut back on S5 component orders. In additon, Samsung's earnings shock has brought out the knives from thier local critics that angrily take a few stabs as Samsung's conceit and blind management.
Apple unveiled the initial build of its latest desktop operating system at the company's worldwide developer conference (WWDC) in early June 2014. With a bevy of new features, including a tighter integration with other Apple devices and services, on top of some user interface changes, many considered Yosemite to represent a dramatic change for Apple in the desktop arena. Subsequent developer interest seems to have been equally striking, as initial adoption figures of the OS beta version in North America have significantly outpaced those of its predecessor, OS X Mavericks.
Apple fans in Switzerland will soon have their fourth Apple retail store. It was first reported on by MacPrime back in May 2013 that Apple had begun looking to fulfill job openings for their new upcoming store. It's being reported today that the new Apple Store will open this coming Saturday.
On June 16 we published a report titled "Samsung's Galaxy S5 is Confirmed a Dud & May Hurt Financials" and were first to report on Samsung's CFO Admitting that their 2nd Quarter wasn't going to be good on June 25. Today Samsung officially reported that their operating profit fell sharply by 24.4% due in large part to a slowdown in smartphone sales. Translation: the Galaxy S5 was a dud and unable to beat Apple's iPhone 5S at the high-end of the market while the Chinese phone makers ate away at their low to mid-range smartphone products.
Apple, which outsources assembly of iPhones and iPads to Foxconn, accounts for about 48 percent of Hon Hai's revenue, according to Bloomberg Industries. Foxconn's Chairman Terry Gou recently urged shareholders to have patience as Hon Hai's sales slow. Foxconn, the key iPhone manufacturer for Apple, and China's largest private employer, also plans to boost investment in robotics and add more high-skilled positions as Gou strives to meet his goal for profit growth of 10 percent. This tidbit of information about robot investment somehow has led to the latest rumor about the iPhone 6 being made with robots. A contradictory report out of China today puts that rumor into question.
According to a new Korean report this afternoon, the South Korea's antitrust watchdog said that it had ordered Apple and Google to revise unfair provisions, including the no-refund policy, in operating their mobile application stores. It is the first time that an antitrust body here has taken corrective action against international app store operators.
Mark Twain once said that truth is stranger than fiction. Well, last week the US Patent & Trademark Office published a patent application from Microsoft that confirms that very saying. Today Fitbit is duking it out with Samsung's Gear and there's great anticipation regarding Apple's possible entry into the wearables market this fall with a health-related device with advanced biosensors. While Microsoft is considering a smartwatch as well, it now appears that they may want to take a completely different course that's quite eccentric. They've invented a mood changing/health device in the form of a robotic butterfly.
In April we reported on two stats from Apple's financial conference call regarding Russia. The first was that Russia was in the top five countries for App Store downloads in calendar Q1; the second was that Apple's business grew 97% in Russia in Q1. Apple opened their online Apple Store in Russia last summer but that could be jeopardized over the next 18 months. Today we've learned that the Russian Parliament has passed a bill requiring internet companies to store Russians' personal data inside the country in an apparent move to pressure sites such as Google, Facebook and Twitter into handing over user data. Yet depending on the language in the bill, it could easily apply to Apple who stores Russian consumer data from the Apple Store in the US.
Last month 46 year old Alexander Stubb became the Prime Minister of Finland. He was formerly the Minister for European Affairs and Foreign Trade from 2011 to 2014. As Prime Minister and someone who thoroughly understands economics and foreign trade, it was disturbing to read that he actually blamed Steve Jobs for killing Finland's economy. Finland is now undergoing its worst financial crisis in more than 20 years.
Well I don't know about Toledo, but Salt Lake City's Mormon Church in Utah is moving forward with its plan to arm missionaries with iPad minis and broaden their proselytizing to social media. A test program that began last fall with 6,500 missionaries serving in the United States and Japan went well, prompting the initiative's expansion, The Church of Jesus Christ of Latter-day Saints said in a news release this week.
It was reported on CNBC earlier this morning that Apple has hired Patrick Pruniaux, the sales director of luxury Swiss watch maker TAG Heuer to help them launch their new iWatch. Apple intends on using the prestigious "Swiss made" label to market its new gadget, according to the head of LVMH's watch brands Jean-Claude Biver. Biver is the Chairman of Hublot (pronounced "ooblo"), a Swiss enterprise creating luxury watches and founded in 1980 by Italian Carlo Crocco. The company currently operates as a wholly owned subsidiary of France's LVMH.
In the first deal of its kind in the Middle East, Apple has inked an agreement with Saudi bookshop Jarir to supply all Apple products through the outlet, as well as providing an after-sales service.
In late June we reported that Samsung's CFO Admitted Publicly that their 2nd Quarter wasn't going good. That's something we figured out a long time ago considering that the Samsung S5 is a dud and that Korean Security Firms had gone negative on Samsung. The iPhone's web traffic in the US and in Britain clearly show that Apple's iPhone users are the world's most productive people despite the fact that the iPhone doesn't have the best battery life. Yet if Samsung's ad helps their fan base gain a laugh or two while they're being screwed over, then hey why not. But at the end of the day, the Galaxy S5 is still a cheap boring smartphone that has a little better battery life. Wow, what a cool corporate image that projects.