Tag: sales

Apple refuses to talk iPhone 7 numbers

gag-500x300 The fruity tax dodger Apple is so terrified that its iPhone 7 will tank it is refusing to release sales numbers for the new launch.

Jobs’ Mob has always used the first weekend of sales to confirm to the world that its marketing has paid off and the phone is a success. Lately it has inflated those sales by adding in those from China and pre-orders.  All this is used to make this version of the phone appear like it is selling better than the last one.

However now Apple has said it won’t provide opening weekend sales numbers for new iPhone launches. Apple said Thursday in a statement that it won’t continue the practice because it’s “now at a point where we know before taking the first customer pre-order that we will sell out of iPhone 7.”

Apple said that “initial sales will be governed by supply, not demand,” leading the company to determine that opening weekend numbers are “no longer a representative metric for our investors and customers.”

The only reason for withholding the numbers is that it is hoping to create another marketing illusion.  We already know that it has ordered less iPhone 7s from its suppliers. It will run out of sales on the first weekend and create the illusion of scarcity and popularity.  If market watchers don’t know the numbers no one will know that the phone is not selling well at all, simply that it has just sold out.

The Tame Apple Press can be guaranteed to say the iPhone 7 is a selling out and report scarcity. In fact if sales are as poor as expected the Apple can even blame them on supply issues.

The iPhone 7 and iPhone 7 Plus become available for pre-order on Friday, while Apple and carrier retail stores will begin selling the phones 16 September. The new models are basically the same is the iPhone 6, with a slightly better chip and the inconvenience of having a terrible wireless speaker system.

Apple’s forecast for the quarter ending in September hasn’t changed, the company said in the statement. Apple on 26 July 26 projected fiscal fourth quarter revenue from $45.5 billion to $47.5 billion. Apple reported sales of $51.5 billion and more than 48 million iPhones sold in the same quarter last year.

 

Former rubber boot maker faces hard times

Gold-Rush-Eating-boots-N_54The former rubber boot maker Nokia has seen the net sales of telecoms equipment fall more than expected in the first quarter.

It has warned that earnings in its mainstay business would decline this year due to weakening demand for mobile gear in key markets. In its first unified earnings report since taking control of rival Alcatel-Lucent in January, Nokia also nudged up its cost-cutting target for the merger.

It said that it was seeking savings of “above” $1 billion in the course of 2018, compared with “approximately” a $1 billion previously.

Net sales at the combined networks business dropped eight percent in the first quarter from a year ago to $5.90 billion, Nokia said on Tuesday, missing analysts’ average forecast of $6.28 billion.

Nokia said it expected networks sales in the full year to decline due to weak investing by mobile operators as well as its focus on integrating Alcatel-Lucent.

Chief Executive Rajeev Suri said while our revenue decline was disappointing, the shortfall was largely driven by mobile networks, where the challenging environment is not a surprise.”

First-quarter net sales fell 17 percent in North America, the company’s largest market, while declining 11 percent in the Middle East, 6 percent in Asia-Pacific and 5 percent in China.

It forecast a full-year operating margin of above 7 percent for the networks business, compared with analysts’ average estimate of 9.4 percent and 6.5 percent in the first quarter.

Analysts expect the margin to rise to 11.6 percent by 2018 once the cost cuts from the merger have been completed.

Nokia started the cost-cutting program last month, saying it was planning to axe thousands of jobs worldwide, including 1,400 in Germany and 1,300 in Finland.

 

Apple sales continue to slump

turkey_with_apples_-_croppedrszThe fruity cargo cult Apple is continuing to see the sales of its iPhone slump.

The Nikkei Business Daily reported that Jobs’ Mob is continuing to slash the production of iPhones in the quarter ending June in light of sluggish sales.

This means that Apple expects the iPhone SE to fail to attract any buyers. Despite it being slightly cheaper, and being hailed as a return to the “small form factor” by the Tame Apple Press, it seems that the great unwashed saw the SE for what it really was – an out-of-date iPhone 5C with a slightly better chip.

It does dispute the theory that Apple fanboys will buy a dog turd if it has an Apple logo on it. It seems that Apple was crazy for even trying it.

The company’s shares fell 1.8 percent to $110.05. Shares of some Apple suppliers also fell following the report. Skyworks Solutions was down 1.4 percent, Broadcom fell 2.4 percent while Jabil Circuit lost 1.7 percent.

The Nikkei reported in January that the technology giant was expected to cut production of its iPhone 6s and 6s Plus models by about 30 percent in the quarter ended March, but production was expected to return to normal in the current quarter.

Now it is clear that the production cut could last longer than the one it implemented in 2013, when Apple cut production orders for its cheaper iPhone 5C a month after its launch.

Apple has told parts suppliers in Japan and elsewhere that it will maintain the reduced output level in the current quarter.

Apple is saying nothing but in January, it said it expected a fall in revenue for the quarter ending March . At the time it blamed the Chinese market showed signs of weakening. However it was also the slowest-ever increase in iPhone shipments.

 

Apple’s first poor results in ages expected

poison-appleApple is expected to report its first bad results in ages later today and the Tame Apple Press is trying to put its best spin on it.

Apple’s favourite news agency Reuters is talking about iPhone sales rising a whole percent but even it admits that it is far from the double-digit growth investors have come to expect.

The fact that there is any growth at all is a plus as we would have through that growth would have fallen by a lot more than that. The iPhone 6S and 6S Plus which according to Reuters “experienced record sales when they were launched” are now facing  weak demand.  What they are not saying is that the only reason they saw record sales in the first place was that they launched in China at the same time as the US rather than delaying the China launch until this quarter.

However analysts say that the iPhone 6s is basically the same as the other iPhones and gave few reasons to upgrade.

 

China, the company’s fastest-growing market, may also have weighed on first-quarter results, as a slowdown in the country’s economy forced consumers to tighten their purse strings.

Reuters thinks Apple sold 75.5 million iPhones in the October-December quarter, a 1.3 percent increase from a year earlier. This compares with a nearly 46 percent year-over-year jump in iPhone sales in the first quarter of 2015. The slowest growth in quarterly iPhone sales so far has been 6.8 percent, in the second quarter of fiscal 2013, according to data from Statista.

Apple is expected to forecast a drop in iPhone sales for the March quarter – the first time that sales will fall since the iPhone was launched in 2007.

This was foreshadowed by disappointing March-quarter forecasts from the company’s Asian suppliers .

Apple is expected to sell 54.6 million iPhones in the March 2016 quarter, according to FactSet. The company sold 61.2 million iPhones between January and March, 2015 – a 40 percent year-over-year increase.

Reuters is hoping that iPhone 7, expected later this year, will pull Apple’s nadgers out of the fire.

Apple shares are continuing to fall. They have fallen nearly 10 percent since the start of October.

 

Microsoft beats Apple in Tablet sales

SurfaceMembers of the Tame Apple Press were grasping their chests and screaming blue murder over the weekend after it was revealed that Apple was being beaten in Tablet sales by Microsoft.

Vole has been making tablets for ages, but no one actually noticed until Apple reintroduced the keyboard-less notepad under its own fruity label in 2010.

Microsoft’s technology was totally eclipsed. The tablet market has been sliding, as owners realised that a keyboard-less netbook was a chocolate teapot of tech, Microsoft’s tablets have come into fashion – thanks mostly to the fact that

Apple resorted to producing the same sort of tablet for a much higher price.
According to a report, “1010data Facts for Ecom Insights, January 2014 – October 2015” by the 1010data Ecom Insights Panel, Microsoft has assumes the mantle of best-selling tablet maker in terms of online sales in October.

What is worrying for Jobs’ Mob in the report, which analyses online hardware sales at the majority of online retailers, is that October was the first month when Apple didn’t lead the market:

Apparently Microsoft has been making steady progress in tablet market share but saw a huge spike in October with the release of the Surface Book and Surface Pro 4.

The Surface Book and Surface Book 4 were both introduced at Microsoft’s October 6 hardware event. This confirms that Windows 10 tablet and hybrid sales are having a significant impact on the market and cleaning Apple’s clock.

Overall online tablet sales have shown some spikes, influenced by a few key product releases including the Surface Pro 3, the iPad Mini 4, and the Surface Pro 4:

Apple maintains a healthy lead in terms of online tablet sales, but Microsoft is in a strong second place position.

What appears that happened was that Jobs’ Mob was aware of this and introduced its Surface clone the iPad Pro in response to Microsoft’s success.

Meanwhile this has caused huge problems for the Tame Apple Press which had written off Microsoft years ago and cast Google and Samsung as the cargo cult’s worst enemies.

LED market in 2015 was not too bright

flexible LEDAn oversupply of light emitting diodes (LEDs) has led to average selling prices of lighting products to slump 30 to 40 percent this year.

That’s according to a report from Trendforce, with analyst Roger Chu saying: “Growing numbers of manufacturers have incurred heavy losses and are exiting the market.”

There is still strong demand for high brightness LEDs, but Chu said the value of the market is up by only two percent this year, amounting to $14.52 billion.

He estimates that it will be worth $14.95 billion in 2016, a rise of only three percent, year on year.

LED based lights are under “immense downward price pressure”.

However, Chu expects the big price declines to moderate next year. This year, the cost of sales to make an LED light bulb, for example, is the same as its cost.

He said that Chinese LED manufacturers are likely to make serious acquisitions, picking up international LED patents and lighting brands.

As prices continue to fall, Chu said buying an LED is close to the cost of “traditional” energy saving bulbs.

Falling tablet sales spark closure

tabletA Taiwanese company has been forced to shut one of its plants as the sale of tablets fall even further.

Coretronics makes backlight modules used in Apple iPad said it was closing its Nanjing factories due to sluggish global demand for tablets.

Global shipments for monitors, notebooks and tablets are projected to drop an average 10 percent on year respectively in 2015. Overall demand is likely to remain stagnant because various applications markets are becoming saturated.

Coretronics spokeswoman Cindy Wen declined to say which products are produced at the Nanjing plant, or give details about its size. She said

Coretronics’ six other panel plants in China are still in operation.

Coretronics plants in Nanjing and Guangzhou in southern China are listed under Apple’s 2015 supplier list.

“Since last year the growth of tablet sales has become worse than previous years, and the market demand has been declining for several quarters,” Wen said.

“We might make some further adjustments in our production capacity in the future, but at the moment we do not have plans to close down more factories,” she added.

Apple queues down by 60 percent

 

apple queueOne of the signs that Apple is falling from favour is that its queues are getting shorter.

Despite there being better buying options, Apple has always encouraged its fanboys to queue outside its stores, sometimes months an advance, to provide the Tame Apple Press (TAP) with a thinly disguised advert.  The long queues showed how popular the phone was along with the enthusiasm of customers.

Until now.

Apple’s Covent Garden store queue revealed how far the Apple brand has fallen in Europe.  The Covent Garden branch is the biggest in Europe and the numbers of people queuing for the just released iPhone 6S wasn’t quite as big as last year.

There were the usual nut-jobs there to be interviewed by the Tame Apple Press, but the metal barriers erected in the cobbled streets in front of the store were not full to bursting, as they were last year and the year before.

The queue was a miserable 400 people strong by the time the doors opened at 8 AM –  an impressive number for any launch but far short of the 1,000 or so that queued last year.

The Tame Apple Press was in a quandary and did its best not to reach the conclusion that the iPhone 6S was just not big enough to drag as many people onto the streets overnight as last year’s shiny toy.

Some tried to blame online sales, but they existed last year and still people queued.

Other TAP members used the opportunity to advertise how different the new iPhone was from the old one by reporting instead that it was now available in a very manly pink and that sales of these versions of the phone were higher than expected.

But nothing could answer the problem that that buyers were not be quite as eager this time around. This also flies in the face of Apple claims the new iPhone is looking set to beat the 10 million sold of last year’s iPhone 6 with the first few days.

Smartphone sales slow worldwide

ANDROIDSales of smartphones across the world have slowed down as the market becomes more saturated.

According to data from Gartner, sales in the second quarter showned the slowest growth since 2013, with 330 million units shipping. That’s up 13.5 percent from the same quarter in 2013.

Where growth has come, its for low cost 3G and 4G smartphones in emerging markets. Smartphone sales in China, however, fell by four percent in the quarter for the first time ever.

Gartner said the Chinese market is now driven by replacement.

Apple’s iPhones continue to challenge Samsung top end phones, with the Korean giant showing a decline of 4.3 percent in market share and 5.3 percent in unit sales.

Huawei surged by 463 percent, while iPhone sales grew by 36 percent in the quarter.

Price wars continue as vendors gear up for new models planned in the second half of this year.

On the operating system front, Android remained the number one driver, but saw its growth fall, followed by Apple’s iOS. Microsoft struggled to sell Windows phones.

Small companies are the key to chip success

Picture courtesy of Wikimedia CommonsOf the 165,000 companies worldwide that buy semiconductor chips, the top 10 account for nearly 40 percent of total revenues, those between 11 and to 100 spend about 30 percent, while the rest also spend 30 percent.

But, according to data provided by Gartner, the top 10 have cut orders over the last five years and that’s led to challenging times for the semiconductor vendors, which are worried about the risks involved.

Masatsune Yamaji, a senior research analyst at Gartner, said disruption in the last few years have shown semiconductor vendors may have put too many of their eggs in one basket. “To overcome the risk, some semiconductor vendors have tried to increase their business with small customers, while others are also realising that they should adjust their strategies to do this,” Yamaji said.

And there is considerable room for sales to smaller businesses. China has gazillions of small organisations which spent $14.9 billion in 2014 with growth particularly strong in the tablet and smartphone sectors.

And the increase in the number of connected things after 2017 will be considerable. Margins are made by using semiconductor distributors – their bread and butter is general purpose components.