Morning Beat: Apple Inc. (AAPL), AT&T Inc. (T), and Sony Corp (ADR) (SNE)
Apple Inc. (NASDAQ:AAPL) is reportedly planning to cut production of its latest set of iPhones by 30% as a counter measure to growing inventory levels. IPhone 6S and iPhone 6S inventory levels have reportedly piled up since they were launched in September, prompting the unprecedented move.
The news did not sit well with investors as seen by the stock tanking by 2.5% yesterday. Apple Inc. (NASDAQ:AAPL) suppliers have already raised concerns that they are not shipping as many units as they would have loved, an indication of an end of a cycle.
AppleInsider disputed the report pointing out that the same analysts were wrong in 2013. They cite Apple analyst Ben Bajarin whom noted the supply cuts pertain only to internal inventory adjustments and have no real relevance on overall iPhone demand or unit sales for the last or current quarter. The site points out some of the potential flaws in the analysis.
AT&T Inc. (NYSE:T) has sorted out issues that made its automation service, Digital Life, lag offerings offered by the likes of Alphabet Inc. (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL). Up until now, the carrier’s service required one to tap buttons when initiating some functions at home. That is however set to change in the coming weeks.
AT&T Inc. (NYSE:T) is preparing a Digital Life Voice service that will do away with buttons, allowing all the actions and controls to be carried out by voice. Changes to the app will make it easy to turn things like lights, on and off by simply issuing an order. The future is not yet ready but should be ready in the first half of this year.
Sony Corp (ADR) (NYSE:SNE) will this year pay more attention to product development rather than pursue market share, with products already on the market. Speaking at the Consumer Electronics Show in Las Vegas CEO, Kazuo Hirai’s, reiterated that the company’s main play is pursuing higher profit margins.
Sony Corp (ADR) (NYSE:SNE) believes it can be able to grow its sales margins on things like television and mobiles to between 2 and 5%. Developing something like a 4K television set could come into play as one of the ways of pursuing higher margin sales.
By focusing on things like gaming, the Japanese juggernaut believes it can be able to reverse a decline in profit margins in the recent past. A virtual reality headset could be in the offing in the coming months as the company moves to affirm its prospects on gaming. When it comes to content the company is looking to bolster its movies and music content as the same accounts for 17% of total profits.
Volkswagen AG (ADR) (OTCMKTS:VLKAY) took the Consumer Electronic Show by storm with the unveiling of two new concept electric cars. The e-Golf Touch and the BUDD-e are the two models the automaker is banking on, to rebuild its dented reputation amidst the emission scandal.
Budd-e is fully electric with an estimated range of 233 miles when fully charged. Charging to 80% should take as little as 30 minutes. Going hi-tech is the name of the game Volkswagen having gone for voice commands for opening doors as well as the cockpit.
The e-Golf just like Budd-e is fully electric, but the German automaker refuses to share finer details about the car. However, the automaker promises a wireless smartphone charging with the car, as well as speed warning alerts.
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