The market is two: Apple and Samsung control 106% of mobile profits

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The data we have identified these weeks ago confirmed a trend that was more or less clear: the market is two, with Apple and Samsung which generate more profit, with 106% of the market thanks to losses from other companies as BlackBerry or HTC.

Rarely can say that a market segment has two actors, but data from Canaccord Genuity, a company of Canadian financial services has become a reality: Apple and Samsung, the two companies leading smartphones, spread over the entire the benefits of one of the most profitable markets in the sector. 

As strange as it sounds the number of the holder of this post, the fact is that two of the most important smartphone market, Apple and Samsung rivals control on 106% of all profits generated by this segment of the market, increasing year to year and quarter to quarter to date, as shown by the evolution of the benefits of the leading companies in the sector since 2010, according to Canaccord:

And how is it possible? Very simple. Because large companies, which previously controlled the market and the benefits it generated, leading some constant consecutive quarters of profit declines, which directly affects the overall increase proportionate share takes the rest, and in this case, Apple and Samsung are the big winners with 106% of the combined total of both companies. Moreover, in the case of Apple's most notorious, as the company is able to generate even more profit by selling less terminals operating margins of 37% compared to the Samsung range that stays at 22%.

Today the market is two, but given the strength and other companies are taking interest in many others, that so far only operated in Asia, for a place in Europe and the United States, this trend may change in the medium term. However, this year a lot is expected of Apple and its iPhone 6, but in regard to the Cupertino, still have much to gain.

Apple will launch the iPhone 5C (8Gb) in the India

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A few days ago I commented about the strange strategy to stop offering the iPhone 4 in India one year after it is reintroduced to be strong in the Indian market. Although we speculated stock reasons, has finally been simpler: Apple will introduce the iPhone 5C 8GB in India.

The new 8GB model was introduced a few weeks ago in all markets, being more economical to the top models intended for those users who do not want to spend much money on a device option. Still, prices are so tight that most users still prefer to buy the top models.

In India the movement is similar to that made ​​in Europe, although the iPhone 5C (8GB) only differ in price about $ 30 of iPhone 5C (16GB).

Will be the key? Personally I do not think so, but just something different in the Indian market. I am not an expert.

Apple gets into debt, but their earnings grow

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Apple, the largest technology company in the world, this week launched debt securities by $17,000 million, with maturity periods of up to 30 years. The launch was made in response to a demand 5 / 6 times higher ($120,000 million), which offer the markets of Europe, USA and Asia.

The goal of the company founded by Steve Jobs, Steve Wozniak and Ronald Wayne, is raise funds by $ 90,000 million, to accelerate the purchase of high-tech firms linked to the "cloud". In the last 18 months, Apple bought 24 new startups. 

Apple has liquid capital by $ 150,000 million, achieved through record profits for the last 5 years, thanks to sales of iPhones and iPads mainly. Apple bonds have similar yield levels of U.S. Treasury securities. It means that your financing is in large part below the rate of inflation. 

Apple is no exception, it is the rule in the U.S. The 1,100 largest companies quoted on Wall Street have $1.23 billion of liquid funds and this record capital increased 15% in the last three years.

In this period (2011-2013), the great American debt capital in the international financial system has tripled, reaching the historical record of $4 billion.

It has never been so high indebtedness of large enterprises of advanced capitalism as at this time in its history, in which your earnings level is high. This paradox coincides with a capital investment of $869,000 million in 2013, and high tech companies have responded by 60% of that total. 

The American experience shows that large companies, as they increase the capital stock, indebtedness multiply and deepen the division of labor among transnational production and financial system. The climax is when large companies have to finance their capital to play as a result of a new technological revolution.

The big changes in the production supply are claiming higher level of indebtedness.

There is no predominance of the financial system on production in advanced capitalism. Just the opposite. These successive technological revolutions in the endogenous character production structure, requiring increasing amounts of funding. More than ever, the twenty-first century capitalism is a "mode of production".

The cost of an investment is measured in future productivity (estimated) of the assets in which it invests, not the expected rate of return immediately. Therefore, the cost of capital (interest rate) is not determined by the current level of earnings, but according to the expectations that the new wave of innovation technological-productive.

In the Q1, Apple sold 43.7 million smartphones ($26,000 million) and China amounted to $9,300 million, up from income earned in Europe, Middle East and Africa, added.

In the next two years, 70% / 80% of current Internet users change their mobile devices for the next generation (5S / 6S), especially those under 30, who are 2/3 of them. 

The new technological revolution is the combination of two factors: mobile Internet, coupled with free access to the "cloud." Through it, the Internet becomes a virtual avenue, global and instantaneous, in which all human activities in each of its phases, all the time are processed. Financial capital is not the highest stage of capitalism. 

Apple will alert the user when the government wants access to your data

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With a major change, the new privacy policy Apple aims to improve the relationship of respect for user data. From now on we will have more information of what is happening with our information.

The relationship between the security agencies and Apple has just taken a turn after the latest initiative of the Cupertino company. This is to alert users of the attempts by the government or any agency access to their personal data. The Washington Post describes about the privacy of Apple recently.

After the famous scandal happened with the NSA, and serious security problems, larger companies offering Internet services are changing and revising their policies and routines regarding privacy. Among other things, the privacy of Apple will change by promoting the initiative to warn users at the time in which the government or an entity decides to inquire about their data, provided that this is not linked to a court order and corresponding secrecy.

"Consumers deserve to know when their information is an objective of the government," say from Apple and other companies affected. Following this concept, the new privacy policy in Apple could be unveiled later this month, according to an informant of the company.

This could mean a change in other governments outside the United States. We really hope that both Apple and other companies are not doing this as a simple measure to clear his conscience. I really want this to be a sincere effort to control and protect our data to some extent and in a justified manner. Already we shall see an end.

Apple regains market share in Japan, Australia and Spain thanks to sales of the iPhone 5S

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Market share: that fact that all manufacturers look. No matter how many devices you sell if the amount you sell to your competitor. In his keynote Apple always provides data to and share in the first quarter of 2014 has one more fact to teach as it has increased its market share in mobile devices.

This increase in sales was due to areas such as Japan, Australia and Europe where market share went up to 57.6%, 33.1% and 19.2% respectively, and these data rose by 8.6% in Japan, 2% in Australia and 0.1% in Europe, Spain is the European country with the largest increase (4.5%). The culprit for this increase has been mainly the iPhone 5S, which has had a great return as far as sales are concerned. 

But not all would be good news for Apple in the first quarter of 2014 and in the United States during the months of January and March share dropped to 35.9% (7.9% less than the same time last year past), showing that Americans buy more at the end of the year than at the beginning.

Is this good news for Apple? Yes and no. On the one hand the increase in market share is always positive, but if we see the overall study data Kantar Wordpanel we realize that Android is still the most used operating system in all countries except Japan, a fact that Apple should attack later or later if you do not want to stay in line.

Spotify, ready to beat iTunes in Europe

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The race to be the best digital music service seems to be changing position. Spotify, according to one of their representatives, would be gaining ground in Europe at the expense of the services offered by iTunes.

Spotify has added more than a million active users in the UK for the past four months. This move is part of its attempt to take control and gain ground on iTunes for the service of the European continent's largest digital music. The benefits of Spotify could have exceeded those of iTunes in Europe.

This was stated in a responsible Sportify in Business Insider recently also explains that the service is growing rapidly, much more than expected for your satisfaction. According to reports, downloads sales are declining in large numbers while Spotify is growing greatly throughout Europe and through iTunes, particularly in the UK. In addition, as indicated by the representative, a large part of the new users are also subscribers Spotify premium service.

Kevin Brown, the source of these claims Spotify has indicated that they do not see iTunes as a true competitor. "Actually," he explained, "the real danger is on Youtube." In addition, Brown has not hesitated to criticize the ability to keep out of Spotify to some artists who have had to date iTunes, although this has not been a real disadvantage, he says. These data come on the eve of an expected launch of iTunes Radio in other parts of the world, but do not know if it will be also for Europe and if this will affect this data.

Darth Vader: Apple is finished!

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Yesterday was the day of presentation of results from Apple and as always, half the world stopped to see if its harmful results were confirmed: 

• Apple has stopped growing and goes irretrievably destruction. 

• Manufacturers mostly competing against Apple with commodity products, which are so used luegono like yours. 

• Manufacturers, except in the category of Samsung smartphones, not money making products or flagships whose sales do not exceed harmful and expensive iPhone 5c. 

But... that reality does not spoil a nice story against Apple!

Judge a company so severely for his "disappointing" quarterly results is extremely shortsighted. Guided by the expectations of Wall Street or a perpetual and constant growth, and expect a new category every two or three years at the level of iPhone is a mistake. First, because it is impossible, because it ignores second how innovation works. But still and all, sales of the iPad have had a drop of 16%, a drop of 19.48 to 16,350,000. Enough to tell that story: Apple is finished!

The key to the Apple's strategy is in the long run

"If your bearings in the long run, the interests of customers and shareholders are aligned" - Jeff Bezos, CEO of Amazon. 

The real question we should ask is whether Apple is oriented in the long term or otherwise endeavors to squeeze the company to satisfy Wall Street. And if we step back and strive to look at the forest instead of the tree, we see that Apple's strategy is called ecosystem: 

• An ecosystem creates loyalty to the company that controls it, because your customers are captive. 

• It's harder to get a customer who is really into it, change device. The more you invest in the ecosystem, the harder it is to change totally platform. 

• The user benefits translate into comfort and integration of different devices. 

Apple is placing their pieces on the chessboard with utmost patience and undistracted

And how can we know that Apple is building a robust ecosystem? At the conference of shareholders yesterday, Tim Cook shared many details: 

• Even I was surprised by the growth of iTunes accounts to 800 million. If we consider that at WWDC Apple said last year he had accumulated 575 million, we have a growth of 225 million. Here it seems that Apple itself may increase the growth rate.

• We are interested in the number of credit card accounts, the chances of Touch ID and Cook's statements about the possibility of including a system of mobile payments.

• ITunes sales for the quarter were 5,200 million, growing 24% and a cumulative 70,000 million downloads of apps. It is estimated that the App Store has generated 85% more revenue than Google Play in the March quarter. 

• The iPad generates traffic to 4 times the sum of all Android tablets, although its market share.

• The Apple Stores are present in 15 countries and have recently opened stores in Brazil and Istanbul. They have reported plans to double its stores in the next 3 years. 

• Apple bought 24 companies in the last 18 months. Some are more important than others such as Authentec, which was the technology that allowed the iPhone 5s fingerprint sensor.

All these data confirm us that the Californian company has always done: enhancing ecosystem services and to place the chess pieces in the right place. Quarter after quarter, device to device and year to year. Think long term, 5, 6 or even 7 plays later from what we see now, like the great masters of chess.

But iPad sales have fallen!

Yes, iPad sales have fallen and are not good news. Is it important? Yes. Apple would want a perpetual growth? Of course. But we must not read too much into one quarter. You can afford a drop in a quarter that is relatively bland in terms of sales (the next so often) when compared with Christmas because it has an ecosystem that protects it from these falls and allows it to counter the blows.

Those who say that Apple is finished, ignore the rest of positive data were confirmed in yesterday's conference:

• Sold 43.7 million iPhones when were planned 38 million. 

• Mac 4.1 million, slightly above estimates of about 4.03 million. 

• 66% of new activations iPads come from new customers. 

• Taiwan, Indonesia and Brazil have a double-digit growth. 

• Mac 4.1 million, slightly above estimates of about 4.03 million. 

• 66% of new activations iPads come from new customers. 

• Taiwan, Indonesia and Brazil have a double-digit growth. 

• India and Vietnam have doubled their sales. 

• 85% of buyers 4s in China are new to Apple. 

• There is also a 69% 5c buyers in China who are new. 

• A large percentage of these users come from China Android. But we had not been in a third of the buyers of the new iPhone Galaxy S5 come?

These data are particularly interesting given the saturation of developed markets. Apple is growing with more affordable terminals (but still scored in the high range) in China and India and part of Southeast Asia is a good sign. It shows that there is a market premium interested in their high-end products. 

It will be very interesting to see how Samsung and Apple face the growth of regional brands in the Chinese and Indian market, as the renamed Mi or Micromax. But we'll see in the future.

A "low" Apple. Financial results for the Q2 2014.Growth 39,3%

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Apple has made official the financial results for its second fiscal quarter of 2014. Apple has 45,600 millions of dollars in revenue. 3,000 million more than analysts predicted. Representing a growth of 39.3% over last year. The net profit was 10,200 million. 

Sales figures fluctuate forecasts 43.7 million iPhones sold (38 million less than expected), 16.35 million iPads (here expected more, 19.7 million), 4.1 million Macs (expected 4.03 million) and 2.76 million iPods sold (2.99 million expected).

If we observe the annual variation aside, we can see that Apple has even grown slightly Having spent a quarter where there has been almost no news:

Let us now look at the Apple data division. Stresses that now the income of the iPod and represent only 1% of total revenue, while the iPhone is eating more and more proportion with 57% of revenues:

And where do all these revenues? America, Europe and China most are performed: