Tag Archives: Apple

How the mighty are falling

Declining sales on phones lead Samsung to smart appliances

The controlling Lee family is trying to reinvent Samsung as a purveyor of Internet-connected appliances to grab share of a market that may be worth $7.1-trillion (U.S.) by 2020. Samsung wants to generate revenue from Tizen applications and services just as Apple Inc. and Google do from their operating systems, and the Suwon, South Korea-based company is emphasizing TVs and consumer electronics after falling a year behind schedule on a Tizen-based phone.

“In smartphones, there’s no chance that Samsung’s Tizen can edge out the two dominant operating systems,” said Claire Kim, a Seoul-based analyst at Daishin Securities Co. “But in TVs, Samsung may have a chance.”

Samsung’s rise to No. 1 in global phone sales depended on Google’s Android. Nearly all of the 243 million smartphones Samsung shipped through Sept. 30 ran the software, which Google typically gives away in return for mobile advertising revenue and a share of app sales.

Samsung faces the strongest challenge to its phone supremacy after posting the smallest quarterly earnings in more than two years. Operating profit at the mobile-phone unit, the company’s biggest cash generator, slumped 74 per cent in the September quarter and sales fell about 33 per cent.

I own an Apple TV and I just can’t get excited about paying extra for a smart TV when I can plug one of those or a Google Chomecast (or Amazon Kindle, Roku….) for under $100 (or under $40 for the Google Chromecast) into the TV and have a smart TV.

The smart appliance market may become huge but I can’t see the smart TV one being that big of deal at all, not when I can get my apps on my tablet and stream to my television.

What happened to Motorola

Interesting article on what happens when your corporate culture goes bad.

Meanwhile, in arguably one of the worst decisions ever made by a major corporate CEO, Zander struck a deal with his Silicon Valley friend Steve Jobs, the CEO of Apple. Together their companies created a Motorola iTunes phone, the first phone connected to Apple’s music store. “We can’t think of a more natural partnership than this one with Apple,” Zander said at the time. Named the Rokr, the phone launched in the fall of 2005. Jobs, who introduced it, called it “an iPod Shuffle right on your phone.”

Zander says he believed that by working with Apple, Motorola could become cool again. But much as it had taught the Chinese to compete with it years before, Motorola was teaching one of the most creative, competitive, and consumer-savvy companies of all time how to make a phone.

Two years later, when Jobs introduced the first iPhone, Zander’s Motorola was still pushing Razrs, pumping up sales by taking new variations further and further downmarket. The result: ever-lower profit margins. One analyst calculated that the company made, on average, only about $5 per device.

Partly because of the huge layoffs of recent years, Motorola’s innovation machine was stalling. The company had long numbered among the top 10 American firms registering U.S. patents, notes analyst Joan Lappin; by 2006 it dropped to No. 34.

Zander insists that he saw the smartphone onslaught coming but that Motorola “didn’t have the DNA or the people” to understand the software involved. He also blames a less-than-speedy Motorola supplier that, he says, caused the company to miss nearly a year in the product cycle. “We should have just broken the contract” with the supplier, he says now. “The one regret I have is that I should have taken myself out of the CEO job and run the [phone] division [myself].”

Another mistake: Zander never engaged in China the way the Galvins had, leaving the details to his division heads and country managers. When China upped its networks to 3G, his managers pushed what they had—older 2G phones—at steep discounts in order to preserve market share, unbeknownst to the CEO. The collapse of the China business in 2007 left Zander dumbstruck. That year the South Korean company Samsung topped Motorola in phone sales for the first time, and it never looked back.

It’s going to be a bloodbath

Dell lays off 15% of it’s workforce

Two sources have told us Dell is starting the expected huge layoff programme this week, claiming numbers will be north of 15,000.*

The company is returning to private ownership to restructure its operations in the wake of a falling PC market, a commoditisation of the server market and a perceived need to better serve enterprises with their ever-increasing mobile and cloud-focused IT requirements.

Does the brand of computer even matter anymore?  For years Dell stood for quality but now, does anyone care if you computer comes from?  It is the same components, technology, and operating system as the next guy and if the next company is cheaper, why not go with them?  If you want a premium brand, you go with Apple.