Month: October 2011

Just last week, Apple unveiled the much anticipated new generation of its smartphone, the iPhone 4S. Though still an amazing phone in its own right, many were disappointed by the lack of a new hardware design and minimal improvements to its software. Sure, the iPhone 4S is two times faster, has a better camera than the iPhone 4S, and has the personal assistant application Siri, but many people were expecting yet another revolutionary device they have become so accustomed to from Apple. 

Despite general disappointed in the newest smartphone by Apple, there has been unprecedented interest in the iPhone 4S. AT&T sold over 200,000 units in the first twelve hours of pre-orders. As of now, all iPhone 4 pre-orders are sold out and people ordering now would see shipping estimates of one to two weeks.

I wasn’t at all surprised by how well iPhone 4S is selling. It has been four years since the original iPhone 3G and 3GS have come out, and most people’s three year contracts are coming to an end. As an iPhone user myself, I find it hard to switch to another phone once the iPhone has become so integrated in my life. With all the Apple die-hards and people with expiring contracts out there, this could just be the bestselling iPhone ever.

Eastman Kodak, once a dominant player in the digital photography market, is now rumoured to be filing for bankruptcy. It recently hired Jones Day, an advisor for bankruptcy, to restructure the business. Hoping to save the failing company, Kodak drew $160 million against its credit line, and entered into an agreement for a new credit facility of up to $400 million. After flailing in its printing business and losing momentum in its digital camera business, Kodak is also looking to sell its more than 1000 digital-imaging patents worth nearly $3 billion, more than the business itself. This would buy the company time to give its inkjet printer business a crucial boost. 

I agree with Kodak’s strategy to market and potentially sell their vast portfolio of patents. Given the company’s current condition and the unstable economy globally, it is necessary for them to have enough cash flow. Its patents include technologies used in a bulky 85 percent of all digital cameras and smartphones. Many companies like Microsoft could benefit from these invaluable patents. After selling their patents, Kodak should focus its resources on its printer business, which lately has picked up market share from HP and Canon with its printing features and less-expensive ink. If it is able to capture some of the printer business, then Kodak would be able to survive its current tough times.

More information can be found here.

The global economy has suffered for nearly two years, but it hasn’t stopped venture capitalists from investing. In fact, the amount of investments in green tech ventures increased in quarter 3 by 23% compare to the same quarter last year. Investors spent $2.23 billion on 189 companies worldwide this quarter, but only $1.81 billion on 179 companies last year. Of all the venture capital, North American companies drew 76% of the investments while Asia attracted 18% and Europe and Israel had the remaining 10%. Traditionally, solar and energy efficiency companies receive the most investments followedby energy storage companies. This year, however, investors have grown fond of energy efficiency technologies because they don’t require huge amounts of money for development and deployment, unlike solar equipment manufacturing and biofuel production.

I find it encouraging that venture capitalists are still willing to invest in companies despite this unstable economy. The green tech industry has been growing over the past few years and as the public becomes even more conscious about the environment, there is a tremendous opportunity in the green industry. Investments in green companies should continue to increase to satisfy the market’s growth.

When I think of large tech companies I would immediately think of Microsoft, Apple or Google. They have been the most talked about and the most successful businesses. None of them, however, was able to generate as much revenue as the quiet giant, IBM. In 2010, it generated 99.9 billion in revenue, more than Google and Apple combined. I never see any products with the IBM logo in stores, nor do I hear much news about the company. So where does it make all that money from?

IBM’s products are not seen on the market because they are not made to be seen. They are mostly softwares that run and power everyday products like GPS. IBM also only do business with businesses. Many companies choose to do business with consumers, but given our fickle personalities, it is hard to satisfy us all. By doing business with businesses only, IBM is able to secure business contracts that are much more stable and profitable. I have always thought that for a business to be successful, it must be well-known and appeal to the masses. IBM has shown that as long as it provides the necessary services and deals with the right customers, it can still generate enormous amount of revenue.