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- The IoT will be by far the largest device market in the world. We estimate by 2019 there will be 23.3 billion active IoT devices connected to the internet, with the installed base growing by a five-year compound annual growth rate (CAGR) of 57% from 2014 through the end of the forecast period.
- For context, that will be two-times larger than the combined number of active PCs, smartphones, and tablets in that year.
- The IoT will result in $1.7 trillion added to the global economy in 2019. This includes hardware, software, installation costs, management services, and economic value added from realized IoT efficiencies. To put that in perspective, the global GDP in 2013 was $74.9 trillion.
- Device shipments across the three main IoT sectors — government, enterprise, and home — will grow from 618 million this year, to 6.7 billion by 2019, for a CAGR of 61%. Revenues from hardware sales will reach $50 billion in 2019, up from $6 billion this year.
- The enterprise sector will lead the IoT, accounting for 46% of device shipments this year, but that share will decline as the government and home sectors gain momentum. By 2019, government will be the leading sector for IoT device shipments.
- The expansion of the IoT will be driven by four main factors — the spread of internet connectivity, the high adoption of "remotes," i.e., smartphones and tablets that control the IoT, large-scale IoT investments, and the declining cost of internet-connected sensors. The cost of these sensors fell from $1.30 to $0.60 in the last decade, according to Goldman Sachs.
- The IoT companies' revenue opportunity lies primarily with those who can create the infrastructure and networks that IoT devices run on. We estimate that hardware will account for only $50 billion by 2019, whereas software and service providers will generate up to $550 billion.
- The main benefit of growth in the IoT will be increased efficiency and lowered costs.
- In Barcelona, applying smart water IoT solutions saved the city $58 million a year in costs, while increasing revenue by $50 million, according to city officials.
- However, security concerns are a significant barrier. Security flaws have been found in major IoT devices. These allowed hackers to gain access to personal information and control the device. This could potentially be catastrophic for those who rely on secure IoT devices to lock their home/business, or governments that use connected devices to control road signs or parking applications.
- The IoT lacks a common set of standards and technologies that would allow for compatibility and ease-of-use. The complexity of IoT systems also increases their cost, putting them out of reach for many enterprises and organizations. Consortia that group together global industrial, tech, and electronics companies are involved in an effort to standardize the IoT and solve pressing security concerns. In addition, Google's new "Physical Web" project aims to create a way for any smart object to communicate with other devices via the web, allowing the devices to bypass native apps, which tend to be built with complicated code for a particular operating system and set of APIs.
Defining And Sizing The IoT Market
The internet has already connected people throughout the world. Now the Internet of Things (IoT) aims to take the next step and connect the world's devices, buildings, and objects.
The IoT can be defined as a network of internet-connected devices that might be monitored and controlled remotely by a user via a computing device.
While the IoT is made up of "things," it's important to distinguish these from the "remotes" that control or collect data from the things.
- "Things," include products that use sensors to monitor their environment and report specific information back to the IoT network to act upon. Their primary function is not to connect the user to the internet but rather perform a typical function (i.e., clean, monitor, communicate, build, etc.) that can be monitored or controlled through added internet connectivity.
- "Remotes," or controlling devices, help the user manage their "things" using apps or other software. These remotes include smartphones, tablets, phablets, PCs, wearable devices, connected cars, and connected TVs.
Our coverage of the IoT, including our market forecast, includes only the sensor-laden "things," which are controlled by remotes. Specific coverage of remotes, which are used to operate the IoT, fall within our mobile research.
- Our latest forecast of the IoT estimates that the number of active IoT devices will grow by a five-year compound annual growth rate (CAGR) of 57% between 2014 and 2019.
- At the end of the forecast period, there will be 23.4 billion IoT devices installed, up from 2.5 billion this year. For context, that will be two-times larger than the combined number of active PCs, smartphones, and tablets in that year.
Last October, we forecast that there would be 9 billion installed IoT devices by 2018. We have revised the forecast based on our estimate that there will be 10.3 billion active remotes — smartphones, tablets, etc. — in the world by 2019. We then estimated the average number of IoT things per remote at 2.25 in 2019.
Here is how our estimates compare with those of other research firms:
The devices within the IoT are being implemented across three main sectors. In many cases, similar devices are used across categories. The difference between them is the scale at which they are implemented.
- Home: Home devices are primarily geared toward the consumer's everyday life and include smart appliances (e.g., smart washers, dryers, refrigerators, printers, etc.), smart home-security systems (e.g., connected monitors, cameras, locks, and alarm systems), heating/cooling appliances (e.g., smart thermostat and air conditioning units), and home-monitoring equipment (e.g., smart smoke detectors).
- Government/Infrastructure: Governmental IoT devices are typically aimed at improving electrical distribution, waste management, smart parking, public transport, defense, maintenance, smart grid, emergency services, and more.
- Enterprise: Enterprise devices can be found in the factory (e.g., surveillance, maintenance, operational feedback), office/buildings (e.g., security, HVAC, energy management), transportation and logistical systems. This category also includes patient care found in hospitals, as well as hospital administration.
Right now, the enterprise accounts for the plurality of device shipments globally, at 46%, but by 2017, the government will begin to ship more IoT devices than the enterprise sector. Both the home and government sectors will grow their share of shipments as enterprise's share begins to shrink.
Further on in this report, we'll look in more detail at how the IoT market will grow across each of the major IoT sectors and the drivers behind the growth trends.
What Is Driving Up IoT Shipments?
The IoT is about to go through a major growth spurt due to four factors:
- Expanded internet connectivity
- High adoption of "remotes," especially smartphones and tablets
- Declining cost of internet-connected sensors
- High amounts of IoT investment
Expanded Internet Connectivity: The International Telecommunication Union (ITU) estimates that currently 40% of the global population is connected to the internet and by 2019, roughly 57% will be connected, as countries continue to build out their internet infrastructure. This increase in connectivity will lead to a larger base of individuals interested in purchasing IoT devices.
High Adoption Of Mobile-Computing Devices: The IoT is heavily reliant on "remotes," primarily smartphones and tablets, which run sophisticated operating systems and software (i.e., mobile applications).
- Cisco estimates that the IoT was born in 2008 as the use of smartphones began to grow. Today, smartphones account for 69% of mobile phones sold globally, and their share is expected to increase as developing nations begin to introduce infrastructure that support advanced, fast 3G and 4G networks.
- In addition to the smartphone, the widespread use of the larger-screened tablet has helped create a better platform and interface for consumers and businesses to control IoT devices.
- The current trend toward phablets — smartphones with screens over 5 inches — should help further spur IoT adoption. Phablets have the larger-sized interface of tablets that makes it easier to control IoT devices. But unlike tablets, which are primarily used in the home, phablets are carried around by consumers and workers, allowing them control of the IoT from any place at any time. We estimate that phablets shipments will overtake smartphone shipments in 2017.
Lower Cost of Sensors: Many IoT devices rely on multiple sensors to monitor the environment around them.
- Goldman Sachs reported that the cost of these sensors declined from $1.30 to $0.60 in the past decade. We expect that price to continue to drop at a steady rate, as more funding goes to improving IoT devices, thus leading to a more cost-effective sensor.
High Amounts of IoT Investment: A tremendous amount of capital has gone toward companies' spending on IoT ventures in the past year.
- We have also seen large companies like Dell begin to aggressively pursue IoT solutions by opening IoT divisions and innovation labs.
- There has been a range of acquisitions including Google acquiring Nest and Intel acquiring Basis.
- In addition, innovative IoT startups, such as IoT cloud-platform provider Electric Imp and smart plug maker Zuli, have received a combined $70 million in funding just this summer.
- As for adoption, companies including Comcast, Microsoft, and Buffalo Wild Wings have installed the en-Gauge system into their businesses, which help to increase the safety of the workplace by attaching sensors to safety devices including fire extinguishers, air tanks, and temperature monitors.
The Total Economic Value Of The Internet Of Things
Based on our estimate for the number of IoT devices, average prices, and capital expenditure trends, we believe that the IoT will add approximately $1.7 trillion in value to the global economy in 2019.
We calculated this "value added" based on revenue from the sale of IoT goods, IoT installation projects, software, and IoT management services, in addition to the cost savings and increased productivity realized from using the devices (e.g., energy savings, increased output, etc.).
We estimate that the enterprise sector will account for the majority of the value added, as businesses embrace IoT solutions and significantly increase their operational efficiency.
Looking purely at revenue, we estimate that in 2019 IoT service providers, hardware manufacturers, and software developers will generate approximately $600 billion in revenue.
It's important to note that both our revenue and value-added forecasts go beyond our device-shipments forecast to account for broader opportunities in the IoT market, beyond hardware sales.
Revenues from hardware only, which corresponds with our device-shipments estimate, will reach $50 billion in 2019, up from $6 billion this year. This accounts for only a small portion of the total IoT opportunity, though, as software sales and installation, consulting, and management services will contribute the vast majority of revenue.
How Each IoT Sector Will Perform
The Home sector encompasses all devices found within the home. It is often referred to as the connected home or smart home and is one of the most exciting and tangible segments of the IoT, as it affects consumers' everyday lives.
- We estimate there will be approximately 1.8 billion IoT home device shipments at the end of the forecast period, up from 141 million this year.
- Connected-home device shipments will grow at a five-year CAGR of 67% and account for a 27% share of the IoT market in 2019, up from 23% in 2014.
- In total, at the end of the forecast period, there will be about 5.8 billion installed smart home devices in use.
Examples of areas ripe for home automation include lighting, security, indoor climate controls, consumer electronics, and safety. Popular smart home devices include Phillips Hue lighting products, the Kevo Smart Lock, Dropcam, and the Nest thermostat.
For a more detailed look at the Connected Home market, check out our recent report on that specific sector.
IoT devices typically fall into two distinct categories: outlet devices and preloaded devices.
- Outlet devices connect to a home appliance and the power outlet to control appliances through the power source. ThinkEco offers an outlet that connects to air conditioners and senses the temperature around the unit, giving the user the ability to control the temperature through a mobile application. It does so by controlling the air conditioner's power supply, cutting power when the selected temperature is reached. Con Edison, a power utility, spotted the potential energy savings offered by this device and gave away 10,000 such devices to New York City residents this summer.
- Preloaded devices are standalone IoT products that have internet connectivity built in. One company, Quirky, offers an air conditioner preloaded with internet connectivity that enables its user to control the device through a mobile application. The device can adjust the temperature without directly cutting the power supply.
We believe that outlet-based devices are a bridge solution and that consumers will slowly phase these out as they replace older appliances with those that come preloaded with internet connectivity. For example, someone who is looking to buy a new air conditioner may opt to purchase a Quirky air conditioner, rather than an outlet to plug into a nonconnected air conditioner.
That's because while functionality is similar, the standalone device is an all-in-one solution and falls close enough to the price range of nonconnected air conditioners.
The government sector will embrace IoT solutions that work across transport, energy efficiency, health services, and defense.
- We estimate the government IoT sector will rise by a five-year CAGR of 68%, to reach 2.5 billion devices shipped in 2019. This will make it the fastest-growing IoT sector in our forecast period.
- Government IoT shipments will rise from a 31% share in 2014 to a 38% share of the overall IoT in 2019.
- In terms of total devices installed, government IoT devices will reach 8.4 billion at the end of the forecast period.
It's important to note, though, the breakdown of government versus enterprise IoT spending is blurry because of differing political systems around the world. Free-market economies will likely see more spending in the enterprise sector, while countries that have a more state-led economy will lean toward government spend.
The city has smart bus stops that provide its patrons with WiFi and charging ports and smart parking sensors that detect the presence of cars and allow the driver to pay using a mobile application. Sensors throughout the city also monitor traffic, lighting, and even monitor the level of trash in municipal waste bins, to trigger pick-ups.
However, Barcelona's full embrace of the IoT won't be easy to replicate on a state/provincial or national level because of the high cost of implementation and slow government action on a larger scale. In the short term, we are more likely to see smaller scale city-specific IoT projects such as the 2012 installation of 6,000 smart parking meters by the city of Santa Monica.
- Of course, there are much larger government-oriented IoT projects in development, such as Solar Roadways, which launched on Indiegogo in April of this year and was able to raise $2.2 million in three months. The roadways are composed of solar panels that take in solar energy, which can then be harnessed for use in surrounding buildings and communities. Additionally, the roads are embedded with microchips that allow the controller to change lighting configuration on the highway and monitor when something is blocking the road.
It's still an open question, though, how an IoT solution like Solar Roadways would be adopted along a large swath of highway. A project of that scale would require many layers of governmental and even legislative approval.
One major area of government IoT spending will be defense. The US alone accounts for about 50% of the global military budget of the 11 leading defense-spending nations.
Connected drones are an example of preexisting IoT technology used by the federal government for defense purposes. Drones currently play a large role in military and homeland security activity today, as they are able to be controlled from afar and can complete a variety of tasks, including reconnaissance.
But, connecting military devices to the web requires a tremendously high level of security. Defense Advanced Research Projects Agency (DARPA), a US Department of Defense agency, is now working on the High Assurance Cyber Military Systems (HACMS) program, which is intended to protect IoT military resources from cyberattacks.
We expect businesses will be the largest spenders on IoT solutions over the forecast period, primarily because companies are able to move faster than governments, are looking for savings, and have the capital to spend on the solutions.
- We estimate the enterprise will absorb 2.3 billion devices in 2019, up from 285 million this year, representing a five-year CAGR of 51%.
- Enterprise shipments' share of the market will slightly decrease from 46% in 2014 to 34% in 2019.
- Enterprise will still be the leading sector in terms of active total devices at the end of the forecast period, with 9.1 billion devices installed.
Examples of devices that will be used by the enterprise include: sensors that are attached to machines, which can monitor if something is wrong and prevent malfunction, energy sensors that can help reduce power consumption in workplaces (i.e., factories, office spaces, transporting goods), transportation tags that can allow for fully automated shipping, irrigation systems that can monitor the soil for optimal nutritional levels, and more.
We believe two North American Industry Classification System (NAICS)-defined industries will benefit the most from the IoT:
- Manufacturing: We see the factory floor as one of the premier places where the IoT can bring increased efficiency through sensors that will track mechanical performance. Sensors can also be placed on machines to detect crucial environmental factors, such as the heat of the machine or a chemical leak, and then alert the operator of any such problems. This should help prevent machines from breaking early, harming workers, or underperforming.
- Transportation and warehousing: Similar to the factory floor, transportation and shipping of goods can be improved by the addition of sensor devices to preexisting systems. Shipping companies will be able to locate packages more quickly and optimize shipments.
The Benefits That Will Push People, Businesses, And Governments To Adopt IoT Solutions
There are four primary benefits to using IoT devices:
- Increased control for users: The user is now able to monitor more aspects of their physical environment and act upon it from anywhere via their remote to make adjustments.
- Cost/Savings: While the cost of large-scale IoT solutions may be expensive, their long-term savings can be large. In Barcelona, applying IoT solutions to the city's water system saved the city $58 million annually in costs, while increasing revenue by $50 million, according to Barcelona's deputy mayor for urban habitat.
- Energy Reduction: Goldman Sachs estimates that IoT solutions in just the home are able to reduce energy costs by 40%. Cities and businesses will also benefit from energy reduction by using the IoT to reduce their operating costs.
- Healthcare benefits: We expect the IoT to significantly improve the operational efficiencies of hospitals by monitoring patients and instruments with devices embedded within rooms. This will then translate into improved health outcomes. For example, a hospital can outfit a patient's room with sensors that will be able to monitor the environment from afar to see if the temperature in the room has dropped. An IV bag can be connected with a sensor that can alert the doctor or nurse if the bag is low or needs to be changed. There have even been examples of heat-monitoring sensors that are placed in the room to check the temperature of the different portions of the patient's body.
Barriers That Could Keep The Internet Of Things From Taking Off
Security flaws currently plague the IoT, as Hewlett Packard found in their "Fortify on Demand" study. The study looked at 10 unnamed but popular consumer-oriented IoT products to test how they might potentially be compromised by attackers and found that “70 percent of the most commonly used Internet of Things (IoT) devices contain vulnerabilities.”
What makes the IoT so unique — as well as so easy to compromise — is that it’s a web of many individual, relatively basic autonomous devices communicating data with each other. With so many cloud-based apps and different IoT software programs being utilized, the number of “areas of vulnerabilities” has vastly increased with the IoT. Particularly sensitive IoT devices include home locks, garage doors, smart grids in cities, as well as connected factory floors.
One popular idea for IoT device security is the "fog," which refers to a cloud network that exists closer to the data source, as opposed to in a server far away. This keeps the device's data with distributed mini-servers closer to the source to ensure security, as well as lowering bandwidth needs.
Cisco launched a fog platform in January of 2014 called IOx. The system equips Cisco devices, including routers and IP cameras, with applications to manage the network around them. Cisco's IOx is currently the most notable fog computing system that has been created.
Another major barrier holding back wide-scale consumer adoption of the IoT is concerns that the devices will further erode privacy. The devices are built to constantly collect data from the environment around them and relay it back to a network. If the data collected by the devices are ultimately fed back into marketing campaigns or communicated to other companies, it could turn off a good deal of users.
In the past year or so, as the IoT has really begun to take off, there's been a renewed emphasis on establishing IoT privacy "rules of the road," including establishing whether consumers will "own" their data and figuring out how IoT companies will ensure that data is stored securely. Establishing privacy standards, alongside securing IoT systems, will be vital to getting consumers, companies, and governments to embrace the IoT on a wide scale.
Large-Scale Implementation Problems
Expense will be one of the biggest hurdles to implementing IoT solutions on a large scale. Governments, in particular, may struggle with setting up large-scale solutions because they are often slow to act and must justify to the public and lawmakers that the economic benefits of the IoT will outweigh the considerable costs of implementation.
In addition, once implemented, the IoT must be managed. One of the IoT's supposed benefits is making lives easier and businesses run more smoothly, but for this to really be the case, there needs to be an effective software solution, especially given that people and entities may install different devices from different manufacturers, with limited compatibility.
Given fragmentation in terms of IoT protocols and operating systems, platforms that can effectively manage a number of different IoT technologies will become increasingly important if adoption is to take off.
The Organizations Pushing The IoT Forward
There are currently three major consortia set up to help companies work together to create IoT frameworks and solutions that will help move the industry forward. Many companies are in more than one of these consortia because each has a different goal and envisions different ways to help the IoT grow.
- Industrial Internet Consortium (IIC): The IIC contains the largest list of members (83) and includes key companies such as IBM, Intel, GE, Cisco, and AT&T. Its goals include creating "use cases and test beds for real-world applications." They also plan to announce best practices and "standards requirements to ease deployment of connected technologies." Perhaps one of their largest goals is to "build confidence around new and innovative approaches to security" — currently the largest barrier for the IoT.
- Open Internet Consortium (OIC): The OIC is the newest of the consortiums formed (July 2014) and includes the fewest members (six). The consortium's stated purpose is to create an open-source framework that allows developers to easily create secure IoT solutions.
- AllSeen Alliance: The AllSeen Alliance was formed in December of 2013 and has 80 members, including Sharp, Haier, Microsoft, Panasonic, and Sony. The alliance manages the AllJoyn open-source software that is available for developers to use on their products to communicate with other IoT devices programmed with AllJoyn. There are many products that already use the software, including some LG smart TVs, Birdi: Smart Air Monitor, and Spotify.
- In addition, Google's new "Physical Web" project aims to create a way for any smart object to communicate with other devices via the web, allowing the devices to bypass native apps, which tend to be built with complicated code for a particular operating system and set of APIs.
These consortiums are vital to the success of the IoT, particularly in the realm of security and common compatibility, since these are areas in which tech companies are required to collaborate for mutual benefit. With unified security standards and IoT frameworks, companies will be able to produce successful IoT devices more easily and cheaply.
THE BOTTOM LINE
- The IoT represents the next major step in internet innovation by connecting everyday devices and objects and enabling control.
- The IoT's goal is to increase efficiency, reduce cost, and give the business or home user greater control over their environment.
- We estimate by 2019 there will be 23.3 billion IoT installed devices connected to the internet. In dollar terms, we estimate that the expansion of the IoT will equate to $1.7 trillion in value added to the economy that year.
- Increased internet connectivity, large amounts of funding, and low cost of sensors will be the primary accelerators of the IoT.
- Of our three defined sectors — home, government, and enterprise — we believe the enterprise will be the largest IoT market in our forecast period. Businesses will be quick to embrace the solutions, as they will increase operational efficiencies, while reducing their overall costs.
- Security flaws in current devices could significantly delay IoT development. However, consortiums are working address this problem and will do so quickly.


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* Q2 rev falls 5.2 pct to $334.7 mln vs est $340.5 mln
* Backs FY EPS view $1.70-$1.80
Aug 27 (Reuters) - Shoe and hat retailer Genesco Inc (GCO.N) posted a second-quarter loss that was narrower than market expectations, on improved cost-cutting efforts, and it backed its full-year profit outlook.
Genesco, which saw same-store sales fall 8 percent in the quarter, said sales comparisons would moderate in the second half of the year and it expects sales at stores open at least a year to grow in the fourth quarter.
The company, whose brands include Journeys and Hatworld, posted a second-quarter net loss of $2.8 million, or 13 cents a share, compared with a loss of $10.8 million, or 58 cents a share, a year ago.
Excluding items, the company lost 2 cents a share compared with analysts' average estimate of a loss of 4 cents a share, according to Reuters Estimates.
Revenue for the three months ended Aug. 1 fell 5.2 percent to $334.7 million. Selling and administrative expenses fell 2.8 percent to $164.8 million.
Genesco expects full-year per-share profit in the range of $1.70 to $1.80.
Shares of the company closed at $20.81 Wednesday on the New York Stock Exchange. (Reporting by Mihir Dalal in Bangalore; Editing by Ratul Ray Chaudhuri)

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Hello, dear reader!
We are delighted to share some news from Latin America in today's newsletter. Read how the Bolivian government will support food security and find out about the challenges Brazil's retailers are facing. In Asia, some manufacturers are looking for domestic alternatives to imports and in Australia, Woolies made a significant move to take on Aldi.
asia & australia
Woolies changes private label Australian retail giant Woolworths will ditch its 33-year-old Homebrand label and replace it with its more upmarket Essentials packaging in a bid to fend off rival Aldi. Insiders, however, believe that Woolies needs to fix more than Homebrand.
Reducing sugar The Berry Company, one of Europe’s fastest growing drinks brands, has announced plans for a major brand overhaul in 2016. The company will re-launch its existing juice and tea range, available at Waitrose and other stores, with 40% reduced sugar and calories.
usa & canada
Accelerating growth Pet retailer Petco has appointed two more key leaders to its executive team in a bid to achieve its omnichannel growth objectives +++ Online retail startup Ron Johnson, which sells higher-end consumer electronics, has added Los Angeles to its delivery area. Its next market will be Chicago.
Haggen takeover approved Idaho-based supermarket operator Albertsons has received approval from the US Bankruptcy Court to acquire the remaining 29 Haggen stores in the Pacific Northwest. The US$ 106 million transaction is expected to close in the next weeks.
Avocado merger California-based avocado supplier GreenFruit has been acquired by FrutiVal, a Mexican grower and packinghouse. The deal is expected to boost an "ambitious" marketing plan in the United States and other overseas markets.
Bolivia supports farmers The Andean country seeks to be the sole producer of its own food by 2020. Its government will invest more than US$ 40 million to support small and medium farmers in local food production according to the Public Institute for Food Sovereignty.
Bad Easter for Brazil Food retailers in Brazil registered a decline by 9.6% in their Easter sales compared with the same period last year, says consumer trend consultancy Serasa Experian. It was the worst result since 2007.


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(Reuters) - British soft drinks company Britvic Plc (BVIC.L) said first-quarter sales rose 3.3 percent, helped by demand for its carbonated drinks in the UK, and said it was well-placed to tackle uncertainties stemming from from Britain’s impending sugar tax.
The maker of Robinsons squash and Tango said revenue in Britain rose 1 percent in the quarter, while carbonates revenue increased 4.9 percent on higher sales of drinks such as Pepsi MAX, the company said.
Soft drinks makers are rushing to reduce sugar in their products as the sugar tax, announced in 2016, is due to come into force in April this year.
The levy has two thresholds - manufacturers will have to pay 18 pence per litre on soft drinks with more than 5 grams of sugar per 100 ml and 24 pence per litre on those with more than 8 grams per 100 ml.
Among Britvic’s international markets, Brazil shone with sales rising 22.6 percent, helped by the acquisition of Bela Ischia in the second quarter last year.
Overall revenue rose to 337.2 million pounds in the first quarter.
The company, however, said it absorbed a number of one-off costs from Palmer and Harvey, one of its wholesalers that was placed in administration recently.
Britvic added that it did not anticipate any longer-term impact as customers are now being supplied by other wholesalers now.
Reporting by Rahul B in Bengaluru; Editing by Saumyadeb Chakrabarty


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The COVID-19 pandemic has had a profound impact on economies worldwide, and Nigeria is no exception. As the most populous country in Africa and a major player in the global oil market, Nigeria’s economy faced significant challenges due to the disruptions caused by the pandemic. This article aims to explore the effects of COVID-19 on Nigeria’s economy, covering key sectors, macroeconomic indicators, and policy responses.
Impact on Key Sectors
a. Oil and Gas Industry: Nigeria heavily relies on oil exports for its revenue and foreign exchange earnings. However, the pandemic led to a sharp decline in global oil prices and a decrease in demand. This had a severe impact on Nigeria’s oil-dependent economy, leading to reduced government revenues, budget deficits, and a decline in foreign exchange reserves.
b. Agriculture and Food Supply: COVID-19 disrupted supply chains and logistics, affecting agricultural activities and food supply. Restrictions on movement, border closures, and reduced labor availability impacted production, harvesting, and distribution. This resulted in increased food prices, food scarcity, and challenges in ensuring food security for the population.
c. Manufacturing and Trade: Lockdown measures, restrictions on movement, and supply chain disruptions significantly affected Nigeria’s manufacturing sector. Reduced demand, supply chain bottlenecks, and challenges in accessing raw materials hindered production and exports. The retail and wholesale trade sectors also faced challenges due to reduced consumer spending and disruptions in distribution channels.
a. Gross Domestic Product (GDP): Nigeria experienced a contraction in GDP as a result of the pandemic. The decline in oil prices, reduced economic activity, and disruptions in key sectors contributed to a contraction of -1.92% in 2020, according to the National Bureau of Statistics. This was a significant decline from the positive growth recorded in previous years.
b. Unemployment and Poverty: COVID-19 led to job losses and income reductions across various sectors, contributing to a rise in unemployment and poverty levels. Many businesses, particularly in the informal sector, were forced to close or reduce their operations, leading to a loss of livelihoods for many Nigerians.
c. Inflation: The pandemic had an inflationary impact on Nigeria’s economy. Supply chain disruptions, increased transportation costs, and reduced agricultural productivity contributed to rising food prices. Inflation reached a four-year high in 2021, surpassing the Central Bank of Nigeria’s target range.
a. Monetary Policy: The Central Bank of Nigeria implemented various measures to mitigate the economic impact of COVID-19. These included interest rate cuts, loan moratoriums, and liquidity injections into the banking system to support businesses and maintain financial stability. The central bank also introduced interventions to support sectors affected by the pandemic, such as agriculture, healthcare, and manufacturing.
b. Fiscal Stimulus: The Nigerian government implemented fiscal measures to mitigate the impact of the pandemic. These included the Economic Sustainability Plan, which aimed to provide support to small and medium-sized enterprises (SMEs), protect jobs, and promote economic recovery. Additionally, there were efforts to increase healthcare spending and social safety net programs to assist vulnerable populations.
c. Economic Diversification: The pandemic highlighted the need for Nigeria to diversify its economy beyond oil. The government emphasized the importance of developing other sectors, such as agriculture, manufacturing, and technology, to reduce dependence on oil revenues and enhance resilience to external shocks.
The COVID-19 pandemic had a significant impact on Nigeria’s economy, disrupting key sectors, causing a contraction in GDP, increasing unemployment and poverty, and leading to inflationary pressures. The Nigerian government responded with monetary and fiscal measures aimed at supporting businesses, protecting jobs, and promoting economic recovery. Additionally, the importance of economic diversification was underscored, highlighting the need to reduce reliance on oil and develop other sectors.


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Interpipe has increased the production of wheelsets by a third in 10 months
In January-October 2021, the Ukrainian industrial company Interpipe increased the production of wheelsets by 32.5% compared to the same period last year, to 19.5 thousand tons.
At the same time, according to the report on production activities for October, Interpipe for 10 months of this year increased sales of wheelsets by 25.7%, to 20.8 thousand tons.
In October-21, Interpipe reduced sales of railway products by 18.8% compared to September, to 14.1 thousand tons.
In particular, sales of railway wheels over the past month fell by 24.1%, to 11.1 thousand tons, while wheelsets increased by 22%, to 2.5 thousand tons, railway axles – by 3.3%, up to 0.4 thousand tons.
According to the document, the drop in sales of railway products in October is due to a decrease in sales to the CIS countries and a pause in the schedule of shipment to India (8% of all sales were sold in this market last month). At the same time, in the first 10 months of 2021, sales of Interpipe railway products decreased by 12.7% YoY, but the gap is gradually decreasing compared to 2020.
Railway news you may have missed:Facebook, Twitter, LinkedIn, read Railway Supply magazine online.
Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit


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Indie game Little Devil Inside is receiving flak due to its racist stereotype design.
Owing to that, developer Neostream Interactive is quick to clear the issue and address the problems. According to fans, Little Devil Inside has enemies that show potentially racist stereotypes.
This look pertains to black-skinned enemies with thick lips and wearing African tribal masks. The entire look harkens back to blackface, a stereotypical role in the past.
LDI trailer showed racial stereotypes for enemy monster
LDI is one of the cuter survival RPGs that came out of the recent PS5 event. The game got a kickstarter campaign in 2015. With five years of development, the game is where it is now. So far, the game looks fun and polished.
Even then, the trailer for the upcoming game only has a single caveat. One of the monsters is a mishmash of clear racist stereotypes for black people. The monster has black skin, thick lips, dreadlocks, a tribal mask, and wears a loincloth.
These details did not come unnoticed within the gaming community, who are quick to point it out. With the current political atmosphere around Black people, it’s a much bigger surprise that nobody in the team noticed.
Neostream took notice and promised that they would not feature the design in the final game. The team addressed the issue on their Facebook page, who noted that the stereotypes were not their intention.
“Racist stereotypes of any kind were absolutely not intended, we were not aware of the stereotypical connotations and wish to apologize to anyone who may have been offended by the character design,” said their post.
“The design intention was to create characters who are protectors/guardians of a particular mystic region in the world of Little Devil Inside. We were not producing character designs referenced on any real African and/or Afro-American human tribes.”
LDI design issue a matter of timing, not intent
Little Devil Inside triggered a potential political correctness landmine with their design. Even then, there’s no reason to believe that Neostream intended for the design to be racially empowered.
Apart from having no history of black disempowerment, Neostream also used a common design. The team noted that they were trying to use different tribal masks from different countries. At the same time, the inspiration came from Moana’s kakamora.
Tribals are also not uncommon characters in video games. Some good examples of using the trope include From Dust and Crash Bandicoot’s Uka Uka. Even then, the timing is more problematic, more than the inadvertent design. While the stereotype is not ok, the problem amplifies with the current Black Lives Matter movement.
The devs promised to remove and correct any issues with the design. Moreover, Little Devil Inside is coming to PC and all consoles, but there is no release date as of today.
Images courtesy of Neostream Interactive/Youtube Screenshots


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- ‘Welcome to the edge of freedom’: Biden’s boots touch down in DMZ
- Obama: Hole U.S. ‘digging out of’ requires billions more in unemployment benefits
- Obama’s regulatory agenda will cost U.S. economy $143B next year: report
- Patriot Act author on James Clapper: Fire, prosecute him
- Russia P.M. Medvedev: No amnesty for political prisoners
- Michigan GOP Senate hopeful reminds government is the ‘servant’
- Christmas, by Congress: Members mull a 15-cent tax on trees
- U.S. unemployment falls to five-year low of 7 percent; 203K jobs added
- World mourns Nelson Mandela and celebrates his life; burial set for Dec. 15
- Bill O’Reilly reminds: Nelson Mandela ‘was a communist’
EBay unveils big redesign with a nod to Pinterest
NEW YORK (AP) - EBay has redesigned its website to encourage visitors to browse and collect items they might want to buy later with something it calls the "feed."
The feature, reminiscent of popular sites like image-heavy Pinterest, shows users items based on things they purchased in the past or items they've clicked on the site. Shoppers can also edit their feed by adding or removing categories and individual items.
Ebay's old search feature _ which helps shoppers who already know what they are looking for _ is not going away. Rather, the company says it wants online shopping feel more like window-shopping or browsing in a brick-and-mortar store.
San Jose, Calif.-based eBay Inc. unveiled the new site Wednesday at an event in New York's trendy Meatpacking district. It will be available to eBay's U.S. users gradually over the next 100 days and to international users after that. EBay says it has 105 million active users worldwide. And it has about 25 million sellers ranging from large brands to individuals.
The company is also launching a smartphone and tablet computer app called eBay Now. The app lets people order items from retailers such as Macy's, Target and Walgreens. In most cases, eBay promises delivery within an hour. eBay Now is being tested in San Francisco but the company will likely roll it out elsewhere in the future.
The company also simplified its shopping site so that it takes fewer clicks of the mouse to buy items. The redesign also looks cleaner and with larger photos than the previous version.
In addition, the company has been testing a service called Lifestyle Deals, which offers Groupon-style daily deals in select cities such as San Francisco, Boston and New York.
Shares of eBay, which reports its quarterly earnings next Wednesday, climbed 54 cents to close at $46.76.
- Obama: Hole U.S. 'digging out of' requires billions more in unemployment benefits
- Bill OReilly reminds: Nelson Mandela was a communist
- PRUDEN: British press horrified as London's new mayor dares to proclaim the truth
- Obama tries to calm Israeli fears over Iranian nuke deal 'not based on trust'
- 'Dude, I'm dreading that I will have to go': Czech prime minister on Mandela funeral
- EDITORIAL: Our ideological president
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- Obamas call to close Vatican embassy is 'slap in the face' to Roman Catholics
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Economist comment on the continuously firming Zimbabwean dollar.
Written by Skyz Metro FM on July 6, 2023
Skyz Metro FM Reporter
The Zimbabwean dollar has over the past days seen a continuous firming trend against the United States Dollar since last week Thursday following the recent macro-economic policies put in place by the Govenment in May.
According to the wholesale forex exchange rate auction held on Thursday, the local dollar pegged at US$1: $5 739.
This has left an economic surge moving towards the stabilising of the economy and ending weeks of market votality that saw price hiking sky rocketing.
The exchange instability prompted the Government to adopt a raft of interventions geared at stabilising the economy by consolidating the fiscal and monetary policy gains achieved so far under the Second Republic as well as preserving the consumer purchasing power as many consumers are being paid salaries in local currency.
Unpacking the forces influencing the allotments in the forex auction market, independent economic analyst and reseacher, Mr Munyaradzi Mhaka said the anticipated price stability implies that consumers can regain lost confidence in the Zimbabwean dollar.
”Indeed this is a welcomed development from a consumer perspective. This a temporary reprieve for consumers and the economy at large.
Evidently, price stability implies that consumers can regain some lost confidence in the Zim$.
It’s a semblance of sanity. This is much attributed to the monetary authorities’ decision to stop issuing new money into the economy, the revision of the interest rates back to 200% again to starve speculative borrowers, and the issuing of gold coins to squeeze and mop up excess liquidity out the market”, he said.
Mhaka added that if the current efforts materialise and is sustained, the economy would be concurrently rejuvinated.
”In the long run, if this stability is sustained the issue of economic growth can actually be addressed positively. Predictions for the future economic trends thus becomes much easier then”, he said.
Local business mogul, owner of Ngamla Proffessionals, Mr Mpumelelo Phiri said the stabilising of the exchange rate meant the lowering of prices by producers. He said it is up to the business owners to now quickly abide with the new sane rates for smooth flow of relations with consumers.
”Business owners are quick to hike prices when rates sky-rocket, but when they start stabilising they take forever to followsuit. We should be able to compliment and match govenment efforts so we can stabilise our own currency and build reputable relations with our clientelle”, he said.


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After decades of being underrepresented in fashion, the plus-size apparel market is thriving; according to Statista, it’s worth an estimated $24 billion and growing at a rapid pace. With this explosion of demand comes more options, obviously, which means shopping for plus-size fashion is no longer confined to a handful of speciality stores or limited sections within larger department stores. Instead, everyone from retail giants like Nike to fashion-forward labels like Reformation have embraced more inclusive sizing and released freshly imagined collections that speak to a more diverse audience. The issue now is not so much a lack of options, but finding the very best places to shop for plus-size clothing in what’s become a very crowded market.
While everyone will have a different opinion


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GameStop Is Expecting A Surge Of Customers After Nintendo’s E3 Direct
According to several different sources, GameStop is having more staff work on June 15 due to an expected surge of customers.
For those that don’t know, June 15 also happens to be the same day as Nintendo’s E3 direct in which it plans to showcase forty minutes of software announcements. This news comes from both industry insider Jeff Grubb and YouTuber Spawn Wave who have both recently posted to Twitter to share details of some kind of GameStop event and a surge of customers next week.
According to Grubb, one reason GameStop is planning to have more staff work next Tuesday is due to stores receiving more next-gen console supplies. However, he also confirms that GameStop is expecting a surge and asks people in the know to contact him if they know more. As for what could fuel this surge, there are only really two things that Nintendo could announce that would cause a mass of customers to descend on GameStops across the US.
The Legend of Zelda: Breath of the Wild 2 was announced back in 2019 and has been in development ever since. What with the title being arguably Nintendo’s most highly anticipated title of their already announced titles, the announcement of a release date would likely see customers flock to stores to pre-order the game.
And even though Nintendo has stated that its Direct will be focused on software only, you can’t help but feel like it could also have a Nintendo Switch Pro announcement to round off the showcase. There have been multiple rumors and reports about Nintendo’s next-gen Switch console and how an announcement could be lined up for sometime this summer. A new Nintendo console would also definitely drive customers to game stores for pre-orders.
Whatever GameStop is prepping for, fortunately, we don’t have to wait very long to find out. As previously mentioned, Nintendo’s E3 Direct is scheduled for June 15, so make sure to tune in at 9 AM PST (12PM EST) to keep up to date on all of Nintendo’s new announcements.
Source: Read Full Article


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Greenpeace is calling for Europeans to drastically cut their meat consumption, as the organisation claims meat and dairy is "wrecking forests, crushing nature and heating the planet"
A Dutch NGO is in Brussels today trying to convince lawmakers to increase the price of beef, chicken and pork. It's a proposal that won't be to everybody's taste..
Knowing the environmental impact your dietary choices could encourage you to cut down on animal products.
There are some places you should steer clear of at all costs.
Surging demand for poultry has lead to acres of deforestation in a bid to grow soya for animal feed.
Food miles or animal agriculture - no one can agree on what's worse for the planet.
Hungarian farmers have praised the new policy but supermarkets are sceptical.
A vegan new year's resolution. The Veganuary campaign is trying to get more and more people to ditch meat for the first 31 days of the next decade to help fight the climate emergency.
A UK researcher gives Euronews top tips on how to make your Christmas dinner - and the holiday period generally - more sustainable.
Astronauts aboard the International Space Station printed and ate cell cultured steaks. Is it coming to Earth soon?
Air Protein has based its creation on Nasa's attempts to develop food for long space missions.
The supermarket shelves have been flooded with new veggie sausages, we tested them out so you don't have to.
Solar Foods are growing protein that could be used to feed lab grown meat.
With studies showing cheese is as bad as meat for the environment, what’s new in the vegan scene?
Climate change trivia is anything but trivial.
We all know that we should try to eat less meat for the good of our health and the environment, but how can we make wise choices when it comes to the meat we do buy?
Germany, famous for its love of sausage, is debating a special tax on meat. The aim? To improve the welfare and conditions of livestock.
American actress Kim Basinger and South Korean activists held an anti-dog meat protest in Seoul, while farmers ate dog meat in front of them, separated by a bastion of police officers.
Experts answer seven questions about processed meat, nitrates and healthier alternatives to your favorite deli meat.
It's World Meat Free Week and the trend to cut down on meat, eggs and dairy is growing at an unprecedented rate.
A new study has found that by 2040, 60% of the meat we eat won't be from slaughtered animals. Instead, it predicts a massive shift to lab-grown meat alternatives or plant-based products.
The EU's Agricultural Committee has voted in favour of removing plant references from names associated with meat
As you swap winter Netflix binges for al fresco dinners with friends, these suggestions will help you throw an environmentally-friendly get together.
Debunking the notorious ‘vegan versus protein’ myth.
EU policymakers have been urged to shake up European diets by pouring public money into creating lab-grown meat as a viable mass-market alternative
It has become common to hear people in western Europe swearing off meat, with initiatives like "meat-free Mondays" gaining in popularity, but does this mean these countries consume less?


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Now in its 8th year, The London Golf Show is returning to Earls Court this weekend and opens this morning. After the success of the first show at Earls Court last year, the organisers promise a bigger and even more entertaining festival of golf.
The Show is designed to provide a truly interactive experience for golfers of all ages with informed expert advice, free PGA tuition, indoor Diving range, Custom fitting, Club testing, Simulators and the latest golf gadgets. The London Golf Show is presented in association with talkSPORT.
For more information visit London Golf Show Today the Show is open until 8.00 p.m. Enjoy!
Geoff Russell, Editor


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New report outlines potential harm that proposed regulations will cause businesses, consumers, and city coffers.
Los Angeles, CA - Sign regulations proposed by the City of Los Angeles will make it difficult to attract businesses, according to a report released by the Los Angeles County Economic Development Corporation (LAEDC) and unveiled in collaboration with the L.A. Area Chamber and other business organizations. The LAEDC report makes clear that the severe regulation on use of “on site” signage proposed by city staff will hinder the ability of businesses, especially small retail businesses; to draw new customers, share information, and keep their doors open.
“A business with no sign is a sign of no business,” said Gary Toebben, President & CEO, Los Angeles Area Chamber of Commerce. “The City Council’s proposed changes to the sign code will restrict the use of on-site signage for businesses to advertise their own products and services. At a time when businesses are already struggling to keep their doors open, now is not the time to add onerous regulations – it’s simply irresponsible.”
“The public has been very clear that they are concerned about digital billboards and supergraphics, not the on-site signs businesses need to survive. Yet this fast-track proposal proposes sweeping reductions of business signage with very little opportunity for public review and comment,” stated Carol E. Schatz, President & CEO, Central City Association. “In these times of economic crisis, we must do all that we can to ensure new regulations help, rather than hurt our local economy; the current sign ordinance timeline simply does not allow for that process to occur.”
The LAEDC report found that the proposed regulations will:
- Lead to reduced sales across our local economy.
- Increase business costs as other, more expensive forms of advertising will need to be utilized to replace the cost effective use of signage.
- Specifically harm retail and other “marginal” businesses that survive and create needed jobs on slim profit margins.
- Increase costs to consumers
- Create a loss of sales and business tax revenue to the City of Los Angeles as sales fall and businesses close.
- Create a loss of sales and business tax revenue as new businesses are enticed to locate in neighboring cities that have less restrictive regulations.
As stated in the report, “To the extent that overall sales in the City of Los Angeles decline, the collection of sales tax revenues and business license taxes that are based upon gross receipts will fall.”
“Regulations, which have a wide ranging and possibly negative impact on so many businesses, should not be enacted without significant review and input from the business community.” Said Stuart Waldman President, Valley Industry and Commerce Association. “The LAEDC report makes clear that we need time to build codes and enforcement tools that will actually work without damaging our local economy.”
The LA Area Chamber of Commerce, Valley Industry and Commerce Association, Central City Association, Hotel Association of Los Angles, California Restaurant Association, the California Sign Association and many others have joined together to demand the City of Los Angeles stop passage of the current proposed on-site sign regulations. The coalition calls for a process where the business community, neighborhood representatives and the City of Los Angeles work together to create effective policies and enforcement mechanisms to truly deal with illegal signage


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FDA clears Preventice's remote heart-tracking system
The Food and Drug Administration has approved a Preventice Inc. remote heart-monitoring system, the Minneapolis-based company said on Monday.
The device, called BodyGuardian and developed with the Mayo Clinic, allows doctors to use cell-phone technology to monitor biometric data for patients with abnormal heart rhythms. The system uses a sensor attached to a patient's chest to collect and wirelessly transmit heart rates, breathing rates, activity levels and other vital signs.
Preventice may now sell the system to hospitals and clinics for ambulatory patients, and expects to make the system commercially available by the end of 2012.
Preventice cited research that found about 2.2 million patients globally are using wireless monitoring, a figure estimated to approach 5 million by 2015. The company also said the global patient monitoring market will reach $9.3 billion by 2014.
Preventice Co-founder, President and CEO Jon Otterstatter said the team was "thrilled" to get FDA clearance.
"Our vision at Preventice has been to maximize this industry-leading collaboration into a solution that enables health care providers to extend and improve care for their patients, where they live," he said in a news release.
Preventice has offices in Rochester and Fargo, N.D. It moved its headquarters to Minneapolis in December.
Jim Hammerand reports on Twin Cities breaking business news for MSPBJ.com and manages online features and social media.
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PORTLAND, Ore. (KOIN) — Between 2018 and 2020, Oregon lost nearly 3,000 beer-related jobs, according to a recently released biennial economic impact study.
The Beer Serves America study, which was published in May by the Beer Institute and National Beer Wholesalers Association, found that the COVID-19 pandemic led to the permanent closure of at least 600 local breweries and brewpubs throughout the country.
While overall volumes of beer sales were up by 0.9% in 2020 compared to 2018, brewing jobs across the country decreased by about 3.3%. The study attributes the job loss to the mandatory shutdowns.
Michael LaLonde, president and CEO of Bend-based Deschutes Brewery, certainly felt the impact of the shutdowns on his business.
“We went from about 500 co-owners down to about 150,” LaLonde said, “So, that was a significant impact to our business because we had to close our pubs, which is a big employer for our company.”
At Deschutes Brewery, employees are called co-owners because every worker joins the employee stock ownership plan.
LaLonde said even after the pubs reopened, it’s been a bumpy road. He said any time an employee tested positive for COVID-19, they would close the pub for two weeks. So far, they’ve done that four times.
Now, risk levels in Oregon are dropping, but LaLonde said they can only seat 50% of their indoor capacity, and that hurts the business.
According to the Beer Serves America study, Oregon saw some of its largest beer-related job decreases in brewing and manufacturing. Brewing jobs fell about 15% from 2018. Manufacturing jobs dropped about 13%.
Since it’s initial layoffs, Deschutes Brewery has since increased its staff to about 350 people. LaLonde said right now, there are 32 job openings within the company, but he’s really struggling to hire people.
“I think maybe some people left the restaurant industry because they saw the fluctuation in opening and closing and restrictions and they decided to pursue a different career path,” LaLonde said.
His other theory is that extended unemployment benefits could be keeping some people from re-entering the workforce. He’s hoping he’ll see more people apply when those benefits end. But for the next few months, he expects hiring will remain a challenge.
To incentivize new applicants, Deschutes is offering signing bonuses. Job postings for line cooks and dishwashers at Deschutes Brewery are offering a $1,000 signing bonus – $125 in the first four paychecks and $500 to anyone who continues to work there until Sept. 15.
Breakside Brewery is also offering hiring bonuses to line cooks. They’ll pay $500 of the bonus after six months and another $500 after 12 months.
Despite the difficulties, LaLonde said he expects Deschutes Brewery will recover and is optimistic for the future. It’s other, smaller businesses he worries about.
“I’m really concerned about other people in the industry who put their hard-earned money to start a business and now they can’t operate successfully anymore. So, that’s a concern that we have,” he said.


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Earlier today, Disney+ released a brand new trailer for Andor that, quite
frankly, makes the show look nothing in need of essential viewing.
It was certainly a giant upgrade from that understated Star Wars
Celebration teaser, but hidden among the handout is
a very disappointing change to the Rogue 1 spinoff's premiere date.
While the plan had been for the primary two episodes of the 12-part
series to arrive on August 31, we are now getting a 3 part premiere on September 21.
There's no explanation for the delay, though it's going to be
telling that this is often after Disney+ Day and D23.


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This summer’s C2 Montreal festival will host an “extremely VIPish” AccelerateMTL event, presented by iNovia and C100. Along with the yearly event, AccelerateMTL and C2 Montreal will also curate a “private and exclusive” three-day Startup Program for entrepreneurs to apply to.
AccelerateMTL’s goal include “connecting startups, igniting ideas and inspiring action”. This year’s event is in partnership with the popular C2 creativity conference, which regularly attracts big-name speakers and guests.
“We brought it down to this: C2 is a huge event that’s already attracting people around the globe, so how do we insert ourselves into the program to give visibility and access to a select number of entrepreneurs? That’s the curation that’s going to be done. It’s going to be extremely VIPish in terms of who will be selected to be an entrepreneur in AccelerateMTL,” iNovia Capital’s Chris Arsenault told MTLinTech.
The investor said every year iNovia and the C100 try to mix it up and add fresh excitement to AccelerateMTL. The Accelerate Series conferences were created by the C100 Association and offer events hosted in Toronto, Montreal, Ottawa, and Alberta.
C100 also puts on a “48hrs in the Valley” event, where Canadian startups go to San Francisco for two action-packed days. AccelerateMTL is meant to pull international investors to Montreal to see what startups have to offer.
With the new partnership, Arsenault said new life and a deeper reach will be provided for both AccelerateMTL and C2.
“The goal is basically to bring to the front a certain number of emerging entrepreneurs and tie them into a network of wealth, be it knowledge or relationships, with people that can help you make a difference.”
AccelerateMTL is also promoting its Startup Program with the new partnership with C2. It’s a private and exclusive three-day program that will be composed of panels and workshops from a “unique group of speakers” to be announced soon. It will all take place at L’Arsenal from May 24-26.
AccelerateMTL’s jury will select 50 early-stage technology startup entrepreneurs. The winners will receive a free ticket to C2 Montreal 2016 ($3,850 value) and entry into the program.
The judges in charge of selecting the winner will be Arsenault, Katherine Barr, a partner at Mohr Davidow Ventures, Jeff Clavier, a managing partner at SoftTech VC and Terry Doyle, an executive chair at C100. The deadline for applications is this Friday April 29th just before midnight. Those interested can email email@example.com with any questions.
For Arsenault, another year of AccelerateMTL and another C2 conference can only mean good things for Montreal’s tech ecosystem.
“Montreal is becoming a hub and we’re seeing it from many different lenses now. We’re attracting thousands of people with Startupfest in the summertime and ,we have C2 which is attracting a different type of crowd,” he said. “Bringing the entrepreneurs to the forefront is in every aspect of what’s happening in Montreal, and it’s only going to better the world going forward.”
“All that said, we’re pretty excited that C2 jumped in and agreed to work with us to make something new and innovative here.”


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Asics India partners with nine celebrity athletes for new campaign
Sportswear brand Asics has partnered with a group of nine ‘youth icons’ and athletes for its new campaign ‘Celebration of Sports’.
On Thursday, Asics announced that it has partnered with sportspeople Manika Batra, Bajrang Punia, Ravindra Jadeja, Sakshi Malik, Karman Kaur Thandi, Rohan Bopanna, T.Gopi, Bhuvneshwar Kumar, and Tiger Shroff. The athletes appear in Asics’ campaign for its autumn/winter 2021 collection, the brand announced in a press release.
“Asics has been a proud partner in the success journey of several athletes,” said Rajat Khurana, managing director for Asics India and South Asia, in a press release. “Each athlete has specific requirements and we work towards it to ensure that our association helps them reach newer heights and fame. While sports and games vary, the core spirit for us remains the same.”
The athletes star in three short films which highlight the power of sports and the brand’s upcoming collection. The 46-piece collection is designed to cover five different sports and footwear designs feature bold, confetti-style detailing.
“Our brand films have been developed to create a positive impact of movement not just on the body, but also on the mind,” said Khurana.
“It also highlights the overall well-being of winning at all costs spirit. We are happy to see many athletes from the Asics family bringing glory to the nation on different stages around the world.”
Copyright © 2023 FashionNetwork.com All rights reserved.


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Millionaires are different from the rest of us – they have more money. The latest research from Shullman, Where and How the Wealthy Shop, reveals the shopping patterns for consumers who have a personal net worth of over $1 million. This research indicates wealthy consumers have different shopping patterns, as well, and these patterns vary along generational lines. According to the Shullman data, wealthy consumers break out into the following age groups:
- Silent Generation 7%
- Baby Boomers 49%
- Gen X 20%
- Millennials 23%
On average, 80% of millionaires prefer to research products online with Millennials having the highest rate at 90%. About 6% turn to their tablets while 1% use their smartphones for research. Interestingly, it is the Gen X millionaires who exhibit the highest smartphone research rate at 4%. Gen Xers are also most likely to call a store (15%). A significant number of Baby Boomers, 23%, go to the store to research products in person at a store.
While 48% of affluents prefer to purchase online, Gen Xers exhibit the highest rate at 65%. Another noteworthy finding was the high number of Millennials, 52% who prefer to shop in person as opposed to online, 39%. Overall, 41% of millionaires say they are not comfortable shopping online via smartphone.
Affluents are strong supporters of locally-owned businesses with 64.6% claiming to prefer shopping in this channel according to Ad-ology Research. About 53% of these consumers say they support companies that sponsor their favorite sports teams and athletes, a rate which is over 100% higher than average. While these consumers may have money, they’re not immune to the lure of a deal. 23.9% say seeing a daily deal has led them to start an online search in the past year. For these shoppers, online research often leads to in-store purchases.
AudienceSCAN data is available as part of a subscription to Ad-ology PRO. Media companies can access AudienceSCAN data through the Audience Intelligence Reports in AdMall.


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Sheetz, a convenience store chain based in Pennsylvania, will soon accept bitcoin as payment.
Bitcoin, a decentralized digital currency, is currently only accepted by a handful of major retailers. Customers can pay for items inside Sheetz convenience stores or at the gas pump using Flexa, a pure-digital payments system. Sheetz is actually allowing customers to use several different crypto currencies, such as bitcoin, ether, litecoin and dogecoin, beginning later in summer 2021.
The announcement makes Sheetz the first convenience store retailer to accept crypto currencies as payment.
The move to Bitcoin by Sheetz is a huge boon to crypto currency. Few retailers in any industry accept crypto currencies, and some businesses may see the connection to Bitcoin as more marketing than a viable payment method. Crypto currencies like Bitcoin are known for their price volatility, which is heightened by announcements like Tesla’s recent decision to stop accepting bitcoin as a payment method.
The Flexa payment system works by converting crypto currencies to their real-time dollar value as payment to retailers. A few other retailers have piloted Flexa, including Barnes & Noble, Bed Bath & Beyond, Crate & Barrel, GameStop, Lowe’s, Nordstrom, Office Depot/OfficeMax, Petco, and Whole Foods Market.
“Above all else, our mission at Sheetz is to continue providing our customers with the ultimate one-stop-shop where they can refuel their car and refresh their body,” Linda Smith, payments manager for Sheetz, said in a statement. “As a result, we are constantly innovating and exploring new offerings to truly give our customers what they want, when they want it, 24/7/365 — that includes accepting many forms of payment. We're very excited to be working with Flexa to roll out support for cryptocurrencies and other types of digital assets at our stores."
Sheetz will leverage its existing NCR POS solution and payment gateway to accept Flexa payments, Chain Store Age reported. Plus, customers can connect their My Sheetz Rewardz loyalty account to Flexa payments. The Flexa rollout will begin this summer, with crypto payments being accepted in stores first, followed by at the gas pump later.
See the full story at Chain Store Age.


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The Apple board is concerned about its “dry spell” in producing innovative products. Apple has been missing in action for a while – October 23rd, 2012 was the last time, Apple launched the iPad mini. Ever since then the Cupertino giant has been largely missing in action. Twitter and Blogospehere – which was alive and abuzz disecting Apple’s latest launch or new launch have largely falled silent and one gets to read more about Cook versus Jobs comparison which is reminiscent of Apple’s Phoenix tale.
This post is to put Apple’s profiling Apple’s share of problems.
1. iPhone and iPad both played a significant role in its growth since 2009. However there is slowdown in Apple sales and prices have gone southwards for a while now. In other words, loss of momentum. Apple seems to be not only losing its pricing power but also its sales growth despite the lower prices.
2. Going by Apple’s own statement- the loss in pricing premium and numbers is not just a temporary loss-
“The Company expects its gross margin percentage to be lower in 2013 than experienced in 2012, and the Company anticipates gross margin to be between 36% and 37% during the fourth quarter of 2013. The lower gross margin expected in 2013 is largely due to anticipation of a higher mix of new and innovative products with flat or reduced pricing that have higher cost structures and deliver greater value to customers and anticipated component cost and other cost increases.”
Financials Q3, 2013 (page 30)
3. The decline in numbers can also hurt the iTunes, software and services, and accessories segments.
4. More importantly, the loss in momentum is showing on its technology leadership – and top of the mind recalls. Apple is suddenly a “has been” from “aspirational” and “ahead of the curve”
5. There have been fiascos such as the Apple Maps which have robbed the sheen and the Halo. Apple was never accussed of being a “half baked device/service”
While it is understood that Apple needs to target the China and the SE Asia markets with its low cost iPhone – iPhone 5C which should take on the mid range Androids and Windows Phones – this would translate in reduction of the overall margins. At the same time, Samsung Galaxy SIII has taken over as the Smartphone tops – disrupting iPhone’s positioning in consumer mind as the best smartphone.
This is the second part of a two part blog on Apple reliving the mistakes that Nokia made 4-5 years back. Read Part I here.
Both Nokia (2007) and Apple (2012-13) were trying to time and control consumer preferences in terms of the features and the screen. Conversely, that was akin to letting the competition in thrugh the back door. Instead of creating the future by out-innovating on the feature roadmap – Both the companies were possibly trying to amass the cost benefits from standardized feature formats.
Tim Cook’s comment on this issue, “Our competitors have made some significant tradeoffs in many of these areas to ship a larger display. We would not ship a larger display iPhone while these tradeoffs exist. Some customers value large screen size. Others value other factors such as resolution, color quality, white balance, reflectivity, power consumption, compatibility of apps, and portability.”
The strongest parallel is how both companies started fighting the consumer preference for larger displays at the peak of their profitability… and then dug in as margins began eroding rapidly. Sample this: Phablets as a segment are already likely to make up more than 15% of smartphone market in 2013 – And Apple chooses to give this market a miss. At the peak of its prowess, Nokia executives talked about the performance trade-offs of big-screen phones: power consumption troubles plaguing big-screen phones; surveys showing that most consumers prefer smaller models. On and on and on, an endless stream of justifications and carefully constructed defenses, lecturing consumers about what they should want to buy. Do you see the pattern?
Apple already has a well learnt lesson – the iPad Mini which was sacrilegious in terms of Steve Jobs’ definition of a tablet is the one that is holding the fort for Apple against the medium/low cost Androids.
Secondly, Apple’s smartphone market shares now seem to be on the wane with Androids from Samsung doing the pincer attack – both from the top end and the economy smartphones. As smartphone penetration moves from early adopters to mass-market and laggard consumer segments, the smartphone as a product will be less dependent on technical superiority, and more dependent on reliability and value – and it is Apple’s market to loose. (The gainers will mostly be the ZTE, Huawei and Alcatels of the world). As reported by Juniper, Samsung’s smartphone volumes are 2X that of Apple’s. AllianceBernstein predicts that Apple’s market share in smart phones will fall to about 12% this quarter, compared to 23% in the same quarter of 2012. Further, the firm predicts that Apple’s market share may fall into single digits next quarter. IDC’s Q1 market shares also show Apple slowing down on its growth trajectory (YoY).
Apple needs to look at the next evolution of iPhone – the mid level low cost iPhone. The iPhone 5S is already confirmed to be only an incremental over the iPhone5 – and is not going to incite mass hysteria as iPhones normally have done. A low cost iPhone could also be critical for Apple especially because ABI estimates the low cost smartphone market will more than triple, in devices sold, between now and 2018 whereas the mid-range will grow at only (roughly) 50%.
For the present, Apple and Tim Cook look to be in a denial state – which is further going to bleed Apple. The high margin strategy is a great things for share holders – but then market presence and numbers is quite another thing. For the love of Apple, I hope it doesn’t going the Nokia way.
Addendum: Just read that Apple may finally be looking at iPhone low cost model and saw a couple of photos as well. Will this turn the tide or is the initiative lost already
Addendum 2: A further validation of loss of Apple’s grip in the smartphones segment is Apple’s declining profit share of the global smartphone industry. Between Q1,2012 and Q1, 2013, Apple’s profit shares of the global smartphone industry declined from 74% to 57%.
Most of 2012 is behind us and it is still an Android – Apple duopoly on Smartphones and tablets. While Android devices and the iPhone make up an overwhelming majority of all smartphones being sold (85% as Gartner Q3, 2012), Windows Phone is still to get the traction it hoped for (although it registered a 1.5X growth over Q2, 2012).
In the mean time, Samsung and Apple dominate the smartphone landscape sharing between themselves 104% of the total mobile phone industry profits generated. iPhone cornered 63% of Mobile phone profits, Samsung made away with 40%. The only other OEM who has been in the black is HTC @ 1% of the mobile phone profits. Phone brands other than Samsung and iPhone have seen a reduction in market value of a combined 64 per cent (Q3, 2012 versus Q3, 2011).Over the last year (YoY Q3,2012 versus Q3, 2011), Samsung profits from Mobile operations jumped 231% while Apple increased 163%.
The good news is that the industry has had net value creation–always a healthy sign that innovation is being valued and absorbed and there could be an outside chance for a third payer (possibly Microsoft) some chance at gate crashing into the industry profits. However, with most of the profits getting banked only at Samsung or Apple, there is very little room for other OEMs (i.e Nokia & RIM) to spend lavishly on devices and services.
On the good many others who are completely sidelines (the list includes Motorola, Nokia, Sony (Ericssson), LG, Blackberry) – the decline is monumental. They all saw Apple coming a mile off. The media had been speculating for several years on when iPod would become iPhone. Yet they sat on their hands, too busy creating monopolies of their own to see where the world was headed. And in doing too many things for too many segments across too many geographies on a varied range of price points – they never built a roadmap to what could be the future of mobile computing.
Interestingly enough, almost all the value from the Android ecosystem is concentrated in Samsung. From the mobile operators’ point of view this emerging duopoly must be deeply worrying. Having been forced to bend to Apple’s will, they were very happy to see the emergence of Android, with its promise of a multitude of manufacturers competing for their attention. Now it looks as though Samsung is in position to
call all the shots in the Android market
Going forward in Q4, 2012, the only thing that can be expected in this equation is Apple regaining ground basis the holiday season bookings of iPhone5 which has generated much of a hysteria around the world
In June 1984, Apple share price was a piddly $1.84. That was when Apple was under attack from Microsoft and Apple machines were being given a miss by the consumer community at large. Today Apple trades at $601.10. Apple’s stock price has appreciated at a CAGR of 23% ever since. Frankly now, that statistic isn’t wowing. So here’s something to wow … post the announcement/launch of the iconic iPhone 5 years back, Apple’s share price has registered 48% CAGR. Ever since the iPad was announced in January 2010, the share price of Apple has zoomed 71% Y-o-Y. And for the nay-sayers, the share price of Apple has gone from $351 to $601 since the death of Steve Jobs.In an earlier post, i had written about Apple’s valuation being higher than the combined valuation of Google and Microsoft combined. In response to Michael Dell’s comment of selling Apple and paying its shareholders back, Apple could buy Dell thrice over with its loose change.
Apple could well be on its way to become a $trillion company (as predicted by MSNBC). If that were to be anytime soon, Apple would be the 16th largest economy in the world (If it were a country). Currently it is ranked 19th at par with Switzerland (IMF estimates) as the 19th biggest economy in the world (If it were a country). If I were to tally Apple revenue’s against the GDP of all the countries in the world, Apple would be equal to GDP of the bottom 105 countries put together. Try this with the CIA factbook data of GDP of world nations. Not withstanding the $100bn cash reserves that Apple holds.
Selling it as fast as they come: Five years ago, it took Apple 74 days to build — and sell — the first 1 million iPhones. Last year, for the launch of the iPhone 4S, the company was able to supply 4 million units for the first weekend and build more than 24 million within the first three months. Last Friday, at least 3 million new iPads were ready for sale in 10 countries, with more on their way to 25 additional countries this coming Friday. Meanwhile, Apple is still building iPhones and iPods by the millions.
Apple is on such a winning course because it’s encapsulated all of its different big products in the famed/infamous “walled garden”. Apple devices work together so well because of the tight integration of the devices, services and experiences across a variety of use cases. However, the question that begs to be asked is how will Apple replicate its success year on year, product after product. Steve Jobs had been immensely successful at building a robust platform (iTunes, Apps Store, iCloud) and then creating device led experiences that were unparalleled amongst the contemporary others.
Currently, the biggest challenge for Tim Cook remains to sustain this momentum. Currently it was iPhone4S and iPad which have been instrumental in pushing the Apple share price by 50% in less than 6 months. Sustaining the craziness and momentum is a formidable challenge and Apple will need to out innovate and out-do the customer experience. Currently the only major new innovation due from Apple is the ITV. The iTV has some formidable base with Apple’s support services. One can expect Apple to perfect the device experience yet again. However, I have this feeling that Apple could be a victim of its own heady success. Apple has set the bar too high and outdoing itself year on year comprehensively is a feat that will be quite impossible. Then again, we speak of Apple here….
There are now over 500,000 Android devices activated every day, and it’s growing at 4.4% w/w: Andy Rubin on Twitter.
500K devices everyday or 1.5million a month, which ever way you see it, the number is certainly a very large one. That Android has its own issues in maintaining the sanctity of the platform is another thing all-together. Blackberry and Nokia need to be worried, very worried, because these numbers dont augur well for them. It means that a lot of BB and Nokia probables are slipping into Android and none of them really have an answer to the Android juggernaut.
However, the one platform and Device that stands to disrupt Android incredible growth is the Apple iPhone and here is how the iPhone could turn tables on Android.
1. iPhone 5 is supposed to be released this September and will be 4G compatible. More importantly, Apple is launching the iPhone5 as a world phone for both GSM and CDMA platforms.That is going to be massive traction for the iPhone.Apple is never going to make dozens of devices to match Android in “choice”, but the carrier part of the equation is being negated.
2. Another rumor suggested, that the iPhone 5 will feature a SIM card slot for other countries except US. This will allow users to insert any SIM card in iPhone when traveling abroad.
3. Apple may be launching a low-cost iPhone along with its iPhone 5 to boost its presence in emerging markets.This could be the big volume clincher. A $349 price point for the iPhone could be a table turner given that Price is the most important factor in smartphone purchase decisions (read survey here).
4. The iPhone5 is also rumored to spec up both on Camera (8MP?) and battery life… both critical parameters.
5. Apple has also won a significant patent for capacitive touchscreens on touchphones. Apple could therefore potentially force competitors to licence their patent. This does place the onus on rival manufacturers to prove their device is not mimicking Apple.
6. Also Apple has a head start over Androids in the tablet segment with 9 out of 10 tablets sold being the iPad. A recent Comscore survey shows that 97% percent of US internet surfing and 89% of Global internet surfing on tablet-based devices worldwide is coming from iPads.The utter failure of Android based tablets to gain meaningful marketshare makes a strong case for the sales success of Android-based phones being little more than a carrier-based vacuum-filling exercise
7. The Verison CDMA iPhone sold 2.2 million units in its first quarter. Simultaneously Market agencies Nielsen and Needham-IDC reported that Android’s surge in US markets was flattening.Q1 2011 data show that while iPhone gained 12.3 percentage points to 29.5% US market share, Android’s share in the U.S. fell from 52.4% to 49.5% — its first sequential loss in any region of the world since early 2009.
The seven factors put together give iPhone5 a lot of power to take the wind out of sails of the Android Juggernaut. Just how it pans out, we would wait and watch!
The bad thing about being a marketer is that sometimes you could be stuck up in your previous glory days for ever and your marketing campaigns are wasted on key elements and features that fail to reflect market realities. Nokia’s latest salvo at iPhone is called the iDoalotmore is scripted on these lines.
Symbian seriously is on its last legs as a smartphone platform of any reckoning and interest as well as sales is rapidly rapidly eroding from the platform. Therefore, there is a hint of ridicule when Nokia takes on the iPhone with its latest iDoalotmore campaign. This campaign was launched a day after iPhone4 was launched in India. Poking fun and snubbing the iPhone with a limited set of feature enhancements is NOT A GREAT MARKETING STRATEGY! Nokia goes to the extent of using the “i” in highlighting the feature lists. Interestingly, the campaign exhorts the Symbian platform which by Elop’s own volition is a burning platform.
Is it me, or is there little sense in Nokia trying to ape and bully down the iPhone? One is reminded of how Nokia tactical trying to block pout sales of iPhone 2 in 2008 by launching the N96 even before it was ripe. The campaign actually worked but in the long term, Nokia got ridiculed trying to match a smartphone with a featurephone. It didnot work for Nokia and N96 is history now.
While Nokia tries hard to impress,iPhone4 just has one word for itself: irresistible! That is Subliminal! Period.
We have all heard about Verizon iPhone 4 launch this February. What this does to competition is a point in debate. I had stated that the Verizon deal will leap frog Apple over the Android-RIM lead positions. Canalys on the other hand predicts that iPhone Verizon will not really derail the Android Juggernaut.
Verizon iPhone 4 will be using a Qualcomm chipset for its CDMA radio (with no GSM capabilities) as opposed to the Infineon versions seen in the GSM iPhone 4. This isn’t much of a surprise by itself, but it paves the way for a major shift from Apple.
Come April and we will see the thinner, sleeker tablet will sport a new screen technology that is akin to (though not the same as) the iPhone 4’s Retina Display and will be “super high resolution”. The device will remain at 10 inches but will now feature both front and rear cameras (not a huge surprise), and… there’s an SD slot.
However, whats more interesting is the stuff under the hood. The new iPad will feature a dual GSM / CDMA chipset produced by Qualcomm and will mark Apple’s shift away from Infineon as its chipset maker to Qualcomm for all of its mobile devices. It’s not clear if the chipset being used will be based on the company’s EV-DO / HSPA Gobi variety or an entirely new design. Presumably, the strength of the new dual-mode chipset is that it will allow both Verizon and AT&T to offer the iPad simultaneously. Come mid 2011,and the iPhone 5 will feature a Qualcomm chipset that does triple duty as the CDMA / GSM / UMTS baseband processor. Apple is also at work on the second generation of its redesigned Apple TV, which will include that new A5 processor. It’s likely that the A5 will make it into the iPad 2 as well.
This then is complete move away from Infineon to Qualcomm that’s truly notable — marking one of the biggest shifts in suppliers and technology since the advent of the original iPhone.
In the early 1980s, the Macintosh faced an onslaught of competition from an army of PC makers whose products ran Microsoft software. The fight did not end well for Apple. In a few years, Microsoft all but sidelined Apple, and the company almost went out of business. Can Apple, which insists on tight control of its devices, win in an intensely competitive market against rivals that are openly licensing their software to scores of companies? It faces that challenge not only in phones, but also in the market for tablet computers, where the iPad is about to take on a similar set of rivals.
For Apple which has lived the part of the bitter PC history, the stakes are huge, as the mobile computing market could prove to be larger than the PC market ever was. Having a tightly controlled ecosystem, which is what Apple has, is a large short-term advantage and a large long-term disadvantage. The competition this time is more formidable: Android, Windows Mobile, Blackberry and (even) Nokia. For now, the smart phone market is growing so rapidly that the rise of Android has not necessarily been at the expense of the iPhone. That will change as the market matures.
Apple’s stock has soared nearly 50 percent this year, and touched all-time high of $314.74. But the rise of Android has been both sudden and unexpected, and its ascent highlights some of the advantages of an open approach. There is much more rapid innovation taking place in an open environment. For every new version of the iPhone, Android has 20 odd smartphones ready to challenge Apple’s leadership mantle. That leaves little room for error at Apple. The company must continue to create hit products, as a single misstep could give Android and other rivals an opportunity to make inroads and steal market share.
Also, as the number of people with Android phones grows, Android will grow more attractive for app developers. For now, Apple’s App Store, with more than 250,000 applications, enjoys a large advantage over the Android Market, which has about 80,000. And those numbers don’t tell the whole story. Apps made for the iPhone tend to be of better quality, are more frequently downloaded and on average are more profitable for developers. But that edge may not last, especially as many developers fret about Apple’s tight control over the App Store.
While the naysayers stack up, the view isn’t as dooming as it seems for Apple. For starters, Apple is the richest company in the technology industry. With $45.8 billion in cash, it can afford to invest heavily in research and development. Apple’s large early lead in devices and developers puts it in a much stronger position than it ever had in the PC market. And because it is one of the largest purchasers of Flash memory, which is one of the most expensive components of a smart phone, it has enormous economies of scale,
What’s more, the iPhone isn’t really fighting alone. The two other devices that run Apple’s iOS mobile software, the iPad and the iPod Touch, further strengthen the iPhone, because consumers like being able to access the content and applications they bought on iTunes and the App Store on multiple devices. Apple has sold more than 120 million iOS devices.
And while Apple’s personal computers were by and large technically superior to Microsoft-based PCs, they were also far more expensive. In the smart phone market, carriers, who play a vital role in distribution, have been willing to subsidize the iPhone so that its cost to consumers is roughly the same as that of comparable Android phones.
Bottomline: Apple may lose its overall leadership, but maintain a share of the market that could easily be in the 25 percent to 30 percent range at a very profitable level. Even that is enough to sustain a very large and very profitable business.
Apple reported a profit jump of 70% from last year, driven by strong sales of Macintosh computers, iPhones and iPad multimedia devices. This has taken the analysts by surprise who had underpitched on the numbers. The reported net income for the fourth quarter of $4.31 billion or $4.64 per share, compared to $2.53 billion or $2.77 per share for the year-ago quarter. Gross margin for the fourth quarter fell to 36.9% from 41.8% in the prior year quarter, while operating margin for the quarter decreased to 26.8% from 30.1% a year earlier.Net sales for the quarter rose 67% to a record $20.34 billion from $12.21 billion in the same quarter last year. International sales accounted for 57% of the quarter’s revenue. iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter. Apple sold 3.89 million Macintosh computers during the fourth quarter, up 27% from the year-ago quarter. Apple sold 4.19 million iPads during the fourth quarter, which however, trailed estimates of some analysts who were expecting the company to sell about 4.8 million iPads during the quarter.
The striking thing about Apple’s numbers are that they are consistent northbound. This is perhaps also mirrored by the share prices. Analysts feel that Apple is not out of steam yet and the rise will continue through a good part of 2011. The factors that would aid the growth of Apple in the future 1 year horizon are the following:
1. Apple is looking to increase its distribution and tieing up with operators such as Verizon will only increase momentum of its iPhone sales. Already the iPhone is eating into a disproportionate share of the global smartphone profits.
2. Apple is building huge economies of scale across its iPhone, iPad and iPod and this helps keeping its costs low.
3. Apple is also able to drive consumer usage across various products. However they have kept the platform constant and its 120 million iOS users are a definite lot who keep coming back for more.
4. iPhone drives data traffic and that is sweet music to carriers who are willing to subsidize Apple products so that the user cost is roughly comparable to Android devices.
5. While Apple TV is taking its first steps, the Apple TV along with the iPhone (for smart computing), iPad (The cross between Laptops and Smartphones),iTunes, Music Streaming, Application Store, iOS, iPods (Multimedia devices), Mac Computers are beginning to forge a media network eco-system which fortifies the Apple Media, Web and Mobile proposition in a unique manner. Come to think of it no other competitor comes close to matching Apple’s scale across these range of devices and solutions.
However the question that nags is while the “Walled garden” approach has yielded great results for Apple, will it be enough to fight the “Open Source” juggernaut. Will Individual brilliance continue to overshine the Collective Enterprise-Open Source (Read Google). Sooner or later Apple will be at crossroads to question its Strategic imperatives and Organization philosophy.