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Carl Icahn to Apple: Time’s Up!

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Carl Icahn to Apple Time’s Up!

Carl Icahn, the billionaire giant, has sold his Apple shares due to the threat on China’s economy and its disappointing revenues. He bought his shares in the third quarter of 2013 and had profited from high revenue growth in the recent years.

However, the quarterly revenue sales reported a drop of $50.56bn from $58bn last year marking the first decline in the company’s sale since 2003. Apple sold 51.2 million iPhones in that quarter, down from 61.2 million in the same quarter of 2015.

 

Trouble in Paradise

The slowing sales of shares had never previously been an issue for Apple Company. However, with China’s economy crumbling, the problem is now visible as is the slow shares of 20% over the recent years.

A decline in the sales of iPhones led to Apple registering its first drop in revenue in thirteen years.

 

A Recap about Apple Company and its Products

Apple, headquartered in Cupertino, California, is a giant American technological company. It’s typically a company which focuses on the designing, developing and selling of electronics.

The Apple Company prides itself on its hardware, software, and online services which all contribute to its massive revenues. The devices we are raving about here include;

  • IPhone tablets, media players, and smartphones
  • Mac personal computers
  • OS x and IOS operating systems
  • iTunes media players and Safari website
  • iLife and iWork creativity and productivity suites

Just to name a few.

Apple is the world’s most valuable brand, with a value of $118.9bn by the Inter-brand best global brands report in 2014. An impressive 84% of people favor its products.

 

China’s Relation with Apple

The Greater China segment has had a close relationship with Apple products. The major revenue makers are

  • Mainland China
  • Taiwan
  • Hong Kong.

Apple sells more of its merchandise in China than in the whole of Europe.

China’s economy is slowing, leading to much of the drop in revenue. China consumer technology sector has often been flux and Yuan, but Apple came to overthrow them.

Though it has been the second largest market after the US, the value of Apple in China has reduced by more than a quarter. In previous months, the company reported revenue of $12.5bn, which is well short of the $18.4bn made in the second quarter of 2015.

China passed a law that resulted in shutting down Apple’s iBooks and iTunes movies services in the country. The law expected all content viewed in China to be stored on the Chinese mainland servers.

 

Relationship Gone Wrong! Carl Icahn’s Claims

Icahn decided to sell his large shareholding due to his fears. He owns 53 million shares worth $6.5bn.

Icahn claims that his business no longer has a position with Apple and blames this on China’s slowing economy. He also cites worries about the interference of the government as his reasons for selling out of Apple.
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He has been one of the prominent activists declaring the company to be worth less than its value. He bought his shares in 2003 when he thought that it was a no-brainer.

Most of his claims concern the barriers to trade put in place by the Chinese government. With these allegations, he hopes to answer the question of whether the ban of Apple in China escalates and what its effects on the profits will be.

He claims that the shares of iPhone were 90% more than what they had been trading. In his open letter to the CEO of Apple, he stated that the market cap of Apple would have been $1.4tn.

 

Should the Consumers Just Wait for It to Blow Over?

The shocking drop in the Apple profits has left consumers with more questions than answers. As if that isn’t enough, the majority shareholder proclaims doom for Apple and sells his shares.

After the claims by Carl Icahn, the pressure of selling increased, leading to the closing down of the Dow Jones industrials with Apple falling by more than 3% to $94.83, and ending at 210 points.

Does this augur well for the product? Of course not! The CFO of Apple spoke of being optimistic about the Chinese market in the long run, and that they are committed to continuing investment in China.

 

Hope For a Better Future All the Same

Apple had warned investors of the incoming impact but is still hopeful that sales will pick up. The Greater China segment has been an area of significant revenue growth for Apple products, and Apple shareholders and investors are hopeful for a repeat of the trend.

Apple revenues have now decreased by more than 10 % during the week. Despite it all, the reassuring words of the CEO of Apple that it will pass over is what the investors, shareholders and consumers hold as a glimmer of hope.

 

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Business

RetailMeNot’s Five to Buy in February

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RetailMeNot's Five to Buy in February
Image via Shutterstock

The wintry temps may make you cold, but February deals are sure to warm your heart. It’s not only a great time to shower your valentine with roses and gifts, but it’s a great time to make other smart and timely purchases as well.

The shopping and trends expert for RetailMeNot, Sara Skirboll, agrees. “With the biggest football game of the year, Valentine’s Day and Presidents Day on the horizon, retailers will offer tremendous savings on a variety of categories — from TVs and TV dinners to all of your Valentine’s Day needs.

1. Play Cupid

With Valentine’s Day this month, shoppers might be struggling to find the right present that symbolizes their love. You can never go wrong with a customized gift made especially for them. This month, shoppers looking to go the extra mile for their loved one will save an average of 40% on items like personalized photo albums, picture frames, wall art and more. You name it, they make it — and just because it’s customized doesn’t mean it will break the bank. Turn to retailers like Shutterfly who is offering a RetailMeNot exclusive for 28% off your regular priced purchase.

2. Ding-Dong Deals

While some might make dinner reservations at the fanciest restaurant in town, many will opt to eat at home. Those who do can take advantage of special promotions and discounts. In fact, diners can save an average of 30% off all month long, so be sure to search the food delivery deals from RetailMeNot. Right now, DoorDash is offering 25% off your first purchase and Postmates is offering $15 delivery credit for existing users.

3. Flower Power

Everything’s coming up roses! According to a recent RetailMeNot survey, 46% of shoppers plan to buy flowers for Valentine’s Day this year, up from 34% in 2019. Many florists will be offering promotions and discounts to help shoppers prepare for the holiday. This year, retailers like 1800Flowers are having up to 40% off flowers & gifts and FTD is offering a RetailMeNot exclusive offer for 20% off sitewide.

4. Get Your Game On

Attention sports fans: Discounts on electronics are not strictly reserved for Black Friday! In fact, February is the second-cheapest time of year to buy a new TV. With the big game right around the corner and March Madness close behind, manufacturers will use those big-time events to highlight big savings on big-screen sets. Another reason for the markdowns is that new models will be released next month, so retailers will be looking to make room for new inventory. Shoppers in the market for a new TV should head to Samsung where they can get 10% cash back with RetailMeNot, and Best Buy where they can find up to 64% off clearance items.

5. Meet Your (Price) Match

Life can easily get in the way of finding “the one,” but online dating sites and convenient mobile apps are here to help. Those looking for love are in luck: Dating sites can offer up to 75% off enrollment fees to encourage singles to put themselves out there. Dating sites like eHarmony are offering 35% off all subscriptions and OkCupid is offering free membership.

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Arts

Shutterstock Announced as Official Photographer of the 2020 EE British Academy Film Awards

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shutterstock 2020 EE British Academy Film Awards
Shutterstock Announced as Official Photographer of the 2020 EE British Academy Film Awards (Photo: PR Newswire)

Shutterstock, Inc., a leading global technology company offering a creative platform for high-quality content, tools and services, today announced that it has been renewed as the official photographer of the 2020 EE British Academy Film Awards, which recognizes the very best in film over the past year. As the official photographer of the show on Sunday, February 2nd, Shutterstock’s on-site entertainment photographers, editors and engineering team will deliver exclusive high-quality images from the event at the Royal Albert Hall in London to the world in less than one minute from the image being taken.

Shutterstock’s editorial team captures, edits and distributes celebrity portraits and candid images leveraging proprietary software optimized for speed to market. As the moments from the red carpet, inside the awards show, and at the after-parties are captured, Shutterstock’s team makes lightning-fast crops and edits and transmits them directly to the desks of photo editors, writers and media. This speed-to-market empowers Shutterstock’s editorial customers to keep up with today’s fast news cycle to quickly deliver their news stories.

“We are pleased to continue our long-standing relationship with BAFTA, an arts charity whose purpose of celebrating and supporting the best work and talent in film, games and television is closely aligned with Shutterstock’s,” said Candice Murray, Vice President of Editorial at Shutterstock. “As a company whose passion is rooted in creativity, it is always an honor to be selected to shoot and share these unique moments recognizing the industry’s top creatives from around the world at the BAFTAs.”

“Shutterstock is best equipped to provide the world’s media with high-quality images of our awards ceremonies and year-round program through their advanced creative platform,” said Claire Rees, Photography Director for British Academy of Film and Television Arts. “Our partnership has grown over the years and as Shutterstock’s technology and service continue to evolve, we continue to see greater results in amplifying the mission of BAFTA around the world.”

Shutterstock’s annual partnership with BAFTA, a world-leading independent arts charity, originated in 2013 and includes editorial photography coverage of the Television Craft Awards, Games Awards, Television Awards, Young Game Designers Competition, Scotland Awards, Cymru Awards and Children’s Awards.

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Business

Amazon Profits Surge as Investment in Faster Shipping Pays Off

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Amazon Profits Surge as Investment in Faster Shipping Pays Off
Image via Shutterstock
By Dominic Rushe

Amazon’s massive investment in faster shipping paid off for the tech company over the Christmas holidays with record sales and four times as many customers taking advantage of its free one-day shipping offer over the shopping season compared with last year.

Amazon is spending billions making one-day shipping the default for its Prime members and the gamble helped drive its revenues up over $87bn for the final quarter of 2019, or $29bn a month, compared with $72.4bn in the fourth quarter of 2018.

Profits increased to $3.3bn in the fourth quarter, up from $3bn in the same period last year, after a fall of 25% from July to September due to its costly shipping investments. Amazon’s shares shot up over 10% in after-hours trading.

“We’ve made Prime delivery faster – the number of items delivered to US customers with Prime’s free one-day and same-day delivery more than quadrupled this quarter compared to last year,” said Jeff Bezos, Amazon founder and CEO.

Amazon’s bumper Christmas – the best in its history – came as other retailers including Target, Macy’s and JC Penney have reported lower sales.

Amazon Web Services (AWS), its cloud computing business, reported revenues of $9.9bn for the quarter, up 34% from the year-ago period.

Amazon also gave an update on its number of Prime subscribers, who pay an annual fee for faster shipping and access to free content on its streaming media services. Bezos said the company now has over 150 million paid Prime members around the world, up from 100 million last April.

Amazon’s share price has lagged its tech giant peers in recent months as investors have worried about its spending. The latest results push the company back into the exclusive club of tech companies now valued at over $1tn including Apple, Alphabet and Microsoft.

Copyright © 2020 theguardian.com. All rights reserved.

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