Tag Archives: business

Apple Wins Class Action Law Suit – iPod Updates Were Genuin Improvements

Apple has won the class action law suit which could have resulted in the Cupertino company paying $1 billion.

The jury took only three hours to rule in favor of Apple. Consumers and retailers were looking for compensation as they claimed Apple abused their dominant position in the digital music space as they ensured iTunes music could only be played on the iPod and they also blocked other services with ongoing updates which Apple has said all along were simply updates to improve the iPod.

The jury agreed and also dismissed claims that the Apple strategy resulted in inflated prices for the iPod.

Apple said the following in a statement:

“We created iPod and iTunes to give our customers the world’s best way to listen to music,” Cupertino, California-based Apple said after today’s verdict. “Every time we’ve updated those products — and every Apple product over the years — we’ve done it to make the user experience even better.”

Notebook Shipments Increased 10% In November

Notebook brands have recently adjusted their strategies in order to limit the impact tablets and smartphones have had on sales.

It seems that the strategy is going to work out for the holiday season. While overall notebook numbers are expected to see a small decline, in November it actually increased by 10%.

The two main reasons are strong HP enterprise sales and high demand in the low-cost consumer segment.

HP ordered 4 million units from ODMs, which is a 60% increase from the previous month.

All seven major vendors being Apple, Lenovo, Samsung, HP, Asus, Dell and Acer are expected to make further adjustment when it comes to their product offering which should shake things up in this space.

Source: Digitimes

iPhone Market Share More Than Triples

The iPhone 6 has given Apple a record third quarter but if we look at the latest research figures and taking into consideration that Apple has made it available in a lot more countries during this quarter, it is pretty certain that Apple is going to report record iPhone sales.

According to analyst firm Kantar Group, the iPhone has gained a lot of market share in the U.S., Japan, Germany and Great Britain.

In Great Britain the iPhone market share more than tripled from 8.5% to 31%. In Japan it also almost tripled from 17% to 48% while market share in the U.S. increased to 41.5%, up from 32.6%.

In Germany the market share was up 5.1% to 16.9%. According to the report some other regions in the EU decreased and so did the market share in China but could be down to the late launches and the fact that a majority of the market in those regions is in the entry level space.

Some positive news after the class action law suit has made headlines in the last few days.

Intel Increases Focus On Asia With $1.6 Billion Factory Expansion

Intel is increasing focus on Asia as the market will continue to experience strong growth in the future.

The chipmaker today announced that it will be expanding the factory located in Chengdu for $1.6 Billion which will be supported by the government.

“Deploying our newest advanced testing technology in China shows our commitment to innovating jointly with China. The fully upgraded Chengdu plant will help the Chinese semiconductor industry and boost regional economic growth,” said William Holt, Intel Executive Vice President.

Intel has increased the focus on Asia in recent years, especially in China and understand the importance of investing in the region and working with the government in order to be successful. Many other international companies fail to do exactly that and are therefore locked out of China.

iPad Sales Will Continue To Decline, Android To Dominate Tablet Market For Years

While Apple had a record quarter last time around, iPad sales continued to disappoint and decreased by 13%.

According to market research firm IDC that trend is going to continue. For the first time since the launch of the iPad it will see a year over year decline which is not surprising if you look at the last few quarters.

Currently the iPad has 27.5% market share which is forecasted to decline to 24.5% by 2018. Android is dominating the space with 67.7% market share but will also experience a slight decrease to 64%.

What Apple and Google leave on the table will benefit Microsoft. During the last earnings we already pointed out that strong demand for the Surface Pro 3 has increased tablet revenues to almost $1 billion and if IDC is right that will multiply as they predict the market share to increase from 4.6% to 11.4%.

Class Action Law Suit Could Cost Apple $1 Billion

Today a long lasting class action law suit will actually start in court. Apple is being accused of abusing their market position during the iPod dominance when it comes to blocking competing devices and services as Apple made sure iTunes music could only be played on the iPod.

The group of individuals and resellers that are suing Apple, wanted to receive $350 million in compensation as they argue that by locking the iTunes music, the prices of the iPod was inflated. Apple chose not to settle, if they lose in court the amount the company has to pay will increase to over $1 billion.