Post Tagged with: "Technology"

Apple’s shift into China shows the company’s masterful execution

Apple’s shift into China shows the company’s masterful execution

Apple’s Q3 2014 earnings report yesterday was a mixed bag in terms of actual results. But from my perspective the results show a company that continues to execute its strategy well given the onslaught from cheaper handsets using the Android operating system. Apple posted a smaller-than-expected 6% gain in quarterly revenue due to sluggish growth in saturated markets in Europe and North America. But revenue in China surged 28% despite Apple’s premium pricing. Apple’s growth days are over in developed markets. But I have been upbeat about Apple’s results because of the China strategy and this report shows that Apple’s growth has some momentum, mainly because of that market. Some figures and comments below.

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Why the Amazon Fire Phone is DOA

Why the Amazon Fire Phone is DOA

Today’s post is about technology and the dynamics of market saturation. My contention over the past couple of years has been that the mobile market in developed economies was becoming saturated to the point that the economics of commoditization would come to dominate the market place. The implication for both telecom operators and device makers could be stark. Back in […]

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Some thoughts on the new Internet bubble

Some thoughts on the new Internet bubble

Going back to my comments from yesterday about the utility of macro, I want to talk a bit about credit excesses and valuation manias. The overall gist here is that manias are endemic to our system because psychology plays a big part in social systems. And while it is debatable how well macro policy can “lean against”, it is clear […]

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Tech News: 2014-06-04

Tech News: 2014-06-04

Intel aims to eliminate all PC cables in 2016 – CNET Google Now Offers End-to-End Encryption on Email SwiftKey, Swype Already Working on iOS Keyboard Apps | Re/code Apple’s HomeKit will help Apple users command their smart home (with limits) — Tech News and Analysis LadyBits’ First and Last Year on Medium — Medium The 22 most important things Apple […]

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Mobile disintermediation is among the biggest trends in tech now

Mobile disintermediation is among the biggest trends in tech now

Today’s commentary provides a few quick hits on some topics I am seeing in the technology space. After a horrible drying up of liquidity after the technology bubble burst 14 years ago, we have seen a resurgence of the technology space over the past several years. While many parts of the US economy are still suffering, the tech sector is […]

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Economic and market themes: 2014-05-23 Credit excesses everywhere

Economic and market themes: 2014-05-23 Credit excesses everywhere

There are widespread signs of credit market froth. This is a telltale sign of top of the cycle or near top of the cycle excess. Think 2005, 2006 or 2007. The key bit here is that credit markets transmit distress in a way that equity markets do not because when the credit writedowns are forced onto banks, the knock-on effects are severe. Let me go through some of these signs of excess with you. As I do so, let’s be clear that the froth is largely due to investors reaching for yield due to excessively low nominal and negative real interest rates. Financial repression has consequences.

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The mobile handset clone wars have arrived

The mobile handset clone wars have arrived

The last earnings report from Apple was good on many fronts. While I was concerned with the dip in sales everywhere outside of the iPhone, Apple’s iPhone sales showed great promise, both in terms of unit sales and average selling price. But I believe this is a blip. Downward pressure on margins will continue on Apple, Samsung and elsewhere. The mobile space’s clone wars are now beginning.

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Detailed analysis and thoughts on the Alibaba IPO

Detailed analysis and thoughts on the Alibaba IPO

Alibaba, the Chinese e-commerce company, is going public via an initial public offering underwritten by Goldman Sachs, JPMorgan, Morgan Stanley, Citigroup, and Credit Suisse. Alibaba was founded 15 years ago in 1999 in a one-room apartment in Hangzhou. It is now controlled by a 28-member partnership and proclaims that it  will build a legacy which will last “at least 102 […]

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Canadian housing, Russian economy, Twitter bubble, and bogus tax proposals

Canadian housing, Russian economy, Twitter bubble, and bogus tax proposals

The Canadian housing market is providing a pro-cyclical boost
Russia is now in a recession
Twitter’s share collapse is emblematic of broader trends
Corporations pay tax for a reason

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US rents surging, technology competition heating up

US rents surging, technology competition heating up

Today is going to be a bit of a roundhouse review of issues in the news rather than a single topic daily newsletter because a lot of different things are creeping up on us that I haven’t highlighted. So I want to touch upon some of the links we have seen recently. Issues are housing and technology

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Apple’s Q2 is a great quarter but top line growth is gone

Apple’s Q2 is a great quarter but top line growth is gone

Last quarter, I said that Apple the China Mobile deal and the growth in China would make for a better quarter for Apple this go round. Moreover, despite the negativity we heard before the earnings report about Tim Cook, Apple is a well-run company which executes its vision quite well. There is nothing wrong at the executive leve;/ And Apple […]

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The so-called new economy and the disintermediation of the rent seekers

The so-called new economy and the disintermediation of the rent seekers

The so-called new economy is about disintermediation. That’s what it has always been touted as. And I think there’s validity to this. It’s interesting to see how incumbents deal with this disintermediation, especially when they have government-regulated markets. A perfect example is Airbnb. The company just closed a $500 million round of funding that values the enterprise at $10 billion. […]

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