Can Apple survive in such a competitive market?

profit per employee comparisonApple’s head count is up 30%, and still the industry’s most productive. Over the last decade, Apple has, with its unheard-of innovation, redefined the music world through Ipods, cellular world through Iphone and the entertainment world through Ipads. After Jobs passing away leaving many concerns for Apple’s future, it’s currently proving analysts wrong by generating approximately $420,000 of profit per employee, beating major companies by an impressive margin. While Apple employs one-seventh as many employees as IBM, its profit reaches almost 13 times. Despite its overwhelming sales with the Iphone 4S investors reacted to the lack of innovative design where stock prices fell. Yet it has, without a doubt, contributed to Apple’s success, where sales proliferated up to a point that it sold more than double of that of Iphone 4 in one weekend.

Apple is prominently dominant over the cellular market where last quarter the iphone 4 took in 4.6% of unit sales and 66.3% of profit sales. Nonetheless, recently revealed that Samsung has over taken Apple in terms of sales share. Furthermore, however, the efficiency Apple retains makes Samsung’s share of the market skeptical. I believe Apple’s future is heavily dependent upon its next innovative product, which will without a doubt influence the future market.

 

 

 

Netflix…. “Back into the future?”

Netflix on Qwikster: Never mindOver the past few years, Netflix has been very successful in the field of DVD’s and is known for pioneering the “DVD-by-mail business”. The whole brand image Netflix created was its concept of easily accessible DVDs for low prices. The idea of “DVD-by-mail business” soon evolved and nowadays one is able to stream DVDs through their computer or game consoles – for example the Wii. Due to this great deal – unlimited DVDs anytime, anywhere, Netflix has influenced and changed the way millions of people view films. However perhaps due to their over popularity, three weeks ago, CEO Hastings announced that Netflix’s DVD-by-mail service would be re-branded as Qwikster, hence a separate payment – losing approximately 1 million customers. Earlier today, customers anger triggered Netflix to abandon their plan and to lose Qwikster. Whether or not this will allow Netflix to get back on track is a different question. Many customers are soon realizing how desperate Netflix was by the fact that they had to recall their somewhat confident plan to begin with. I believe without a doubt Netflix managed to lose trust in their customers and it will take time and patience to re-gain it.

 

 

http://topics.nytimes.com/top/news/business/companies/netflix-inc/index.html

http://money.cnn.com/2011/10/10/technology/netflix_qwikster/index.htm

China’s undervalued currency…. is it fair?

Today, the senate of the United States of America announced that they will target China’s undervalued currency – having been accused for distorting trading values and hampering the US economy and hardships of manufactures.

“If we continue to lose wealth and jobs to China, … we may never recover as a country,” said Sen. Although technically the Chinese yuan would have been appreciating, due to their pegging the yuan to the US dollar, the yuan is set artificially at a lower value. By artificially keeping its currency low, China is discreetly discounting its own exports. The trade-offs USA will face is that US citizens are able to buy goods for a cheaper price however domestic manufacturers will not be able to compete with such a low price. Nonetheless, I believe the consequences of forcing China to appreciate their currency is far little than its current state, especially because China is currently the number one growing economy. In other words although China may still be able to produce good for cheaper with its currency revalued, allowing the yuan to be exchanged in a floating currency will, in the long term benefit the global economy.

 

http://www.shuttervoice.com/wp-content/uploads/2010/08/yuan-USdollar_01.jpg

http://money.cnn.com/2011/10/10/news/economy/china_currency/index.htm?iid=HP_LN

http://www.npr.org/templates/story/story.php?storyId=5353313

Apple’s future…. for the good or for the bad?

Last Wednesday (Oct 5th 2011), the world lost a valuable innovator. Jobs had been notorious for being prompt and keeping a close eye on all stages of products. Jobs’ contribution and attention also helped influence hit products such as the Ipod, Iphone, Ipad and Macintosh’s. Each product’s success enabled to help promote investment within Apple’s market.

 

I agree with Natalie Tang‘s opinion that Apples future will now rest within Tim Cooks hands leading to ambiguous speculation whether he is suitable. Many analysts have anticipated that Apple’s stock market would plummet after Jobs death. Yet, this mornings stock market showed Apple’s shares to have increased.

I believe this is linked with iphone 4S where it has taken dominance over the phone market even before its official release. It has a record – pre-orders topped 1 million in one day. It is the trust and image Apple holds that influences potential customers to invest in Apple. I also concur with natalie on the point of view that although apple has lost a major influence to its company, they still have an advantage and dominance over the market share. It will be interesting to see what new innovative product Apple will come up with next.

…Can blackberry stay focused?

We humans currently live in a world where smart phones are indispensable to our lives. Due to other smart phones who hold a great amount of the market shares, (iphone, nokia, sumsung and motorola), competition is obviously very high. In these past years blackberry attempted to distinguish themselves. Their main focus was on e-mail, calendar and communication features making it optimal for busy businessmen. In addition their focus was for corporate users, promoting their high measures of security and reliability. However this morning, it was reported that users have been cut off and all communications have been disrupted. If faults like this continue, blackberry may lose trust in the market.

http://bestsmartphone2011.info/wp-content/uploads/2011/09/best-smartphones.jpgHowever, more recently, Research in Motion is starting to change its target market to high-end consumers who will perhaps buy the device for leisure as well as for work. This means its principle will start to overlap with other smart phone devices. Blackberry’s uniqueness was its keypad – enabling users to type quicker, however now they are slowly integrating a non-keypad phone. Although the market for smart phones is highly competitive, I believe blackberrys should still stick to its original motto and stay focused to its more appreciated buyers.

 

Work… to live?

There have been recent revelations of death from overwork in Japan. Japanese companies have therefore started to regulate business ethics, yet ethical issues are still prominent. It is said that businessmen in Japan work up to sixteen hours a day, while having to meet their bosses demands. Although their diligence and patience are not much appreciated, businessmen continue to work with a slight aspiration to be promoted, for a better living. It is stated that “Nearly two-thirds of respondents to the survey take fewer than 10 days of vacation a year” (Los Angeles Times).

Owing to the old customs in the Japanese business world, businessmen are naturally inclined to introduce themselves by their name followed by their rank in which ever company they work in. The nature of the business world in Japan is perhaps creating this pressure of having to be elite.  However is it the society which created such working environment that should hold the blame of workers dying from overtime? Is it a question of companies having to reconsider their policies? Or is it an ethical decision made by the individual to exceed their limits to work more.