Apple Under The Axe Of Blames and Accusations

The tech giant has been accused of providing assistance to Chinese government while backing out from the homeland court order.

On Thursday, the Silicon-Valley tech giant yet again came under the axe of harsh criticism of the Justice Department who –according to company’s lawyers –“ridiculously” and “desperately” put a charge on the tech titan for providing assistance to Chinese government so that they can access customer phone data while simultaneously posing strong resistance in helping the U.S. government to unlock an iPhone used by one of the terrorists in last year’s callous San Bernardino attacks. The iPhone maker has been greatly miffed by the accusations put on them and the executives denied that the company has surrendered to Chinese government demands while ignoring the home country’s court order.

Against the court order subpoenaed by the Justice Department, the $573 billion organization has counter-argued that in the event where the company loses to the Justice Department then the foreign leaders who, in comparison with U.S., lack respect for human rights will coerce the tech giant to aid them in accessing the data of their customers. The company fears that tarnishing the privacy of the consumers will have serious consequences. The disagreement between the Apple and the FBI heated and now the case has reached to the Supreme Court. The tech titan has got the support of other technology companies while the law enforcement organizations have got the back of the FBI.

In the midst of the nasty legal battle, the Justice Department has accused the company of forwarding co-ordination to China instead of helping their own homeland. The federal prosecutors blamed the tech giant of making special accommodations in China. The prosecutors blame that the company has been forwarding great deal for the Chinese government. They added that when the Chinese government asked the tech titan to provide the data of around 4,000 iPhones the company complied without showing resistance.

The government filing also highlighted the fact that the Cupertino, Calif. firm conveniently moved the data of the Chinese users to the exclusive servers of the Chinese government in addition of installing a different protocol for Chinese phones. However, the company responded rather aggressively to all the accusations coming its way.

Apple General Counsel Bruce Sewell has been reported to have said: “In 30 years of practice, I don’t think I have ever seen a legal brief that was more intended to smear the other side with false accusations and innuendo, and less intended to focus on the real merits of the case.” He also labeled the document as a “cheap shot.”

The company explained that the customers data was only transferred to the stated owned China Telecom, back in 2014, in order to provide improved performance for the Chinese customers. Apple added that the data stored is not accessible by China Telecom and was appropriately encrypted.

Miffed by the allegations put on it, the Silicon Valley business stated that when the U.S. law enforcement officials asked for the information relating to almost 9,717 smartphones the company complied and produced the data around 81% time.

Apple is showing resistance only because it fears that the potential software which the FBI is asking it to create will add a backdoor to the hackers to tarnish the privacy of the consumers. However, the FBI is not asking for universal software but a key to the subject device used by one of the terrorists. The legal battle is still on and the time will tell how the parties came out of it.

TV Networks Are Now Adopting Netflix Strategies

In order to stay in the competition, TV networks like TV Land and TBS are becoming more like Netflix.

Netflix Inc. is a powerhouse in the TV industry. At the beginning of this year, the company became a global TV network by expanding in 130 countries simultaneously and it is not holding back to further extend its lead over the traditional and internet TV businesses in the market. What viewers really like about Netflix and other internet TV providers is the option to allow users binge watch their favorite TV series. This feature makes it different from other traditional TV networks.

Since its inception, it has sidelined the pay cable TV operators and networks. For a very long time, TV networks are trying to chase and compete against the streaming service providers, specifically Netflix, but there is no chance at all for them to even reach near it. Thus, sources now suggest that the TV networks might change their strategies to revive business for their better future.

As they say, if you cannot beat them, be/join them. Various sources are now reporting that the perception of traditional TV businesses is changing as viewers are preferring to ‘cut cords’ and pay the cost for such services.

According to reports published by Reuters, major TV networks are trying to be like Netflix and copy its strategies where it already brought change in expectations of an average viewer. This was further confirmed as TV Land announced to produce more original programming that will be on serialized narrative in an attempt to gain the support of viewers.

A new TV Land show, Impastor, is of man who is addicted to gambling and is tormented with the debts. On the other side, he pretends to be a preacher of a very small town. The creative & marketing executive of TV Land, Kim Rosenblum, said, “Instead of it being every episode as a standalone, we added a storyline that was told more episodically as the mystery unravels.”

The cable companies have been losing pay TV subscribers since the past three to four years. According to data compiled by Liechtman Research, the cable companies lost as much as 345,000 subscribers last year. This is nothing if compared to last year’s figures where the companies lost a massive 1.2 million pay TV subscribers.

The DSL reports said, “many operators are also all-but giving television away by making the cost of bundling TV and broadband notably less than buying broadband standalone, meaning a lot of customers are signing up for TV service they may not have wanted and may not even be using.”

Not only TV Land but also other TV network, such as TBS, tried to do the same with its comedy series ‘Angie Tribeca’ earlier this year. The show lasted for 10 episodes in its first season.

Samsung Warns About Rising Competition In 2016

Samsung sends out a warning of the huge competition that will be faced in the tech business this year.

Samsung has made another sad announcement regarding the tough competition it will be facing this year for all of its products including smartphones and memory chips to semiconductors and much more. The South Korean tech giant CEO also announced of chairman position being available for non-CEOs.

The galaxy maker is ready and well aware of the competition around the globe. It has managed to face it in 2015 and is all set to stand against it again this year. It is facing the competition due to the economic uncertainty and the exchange rates worldwide. The CEO of the company, Kwon Oh-Hyun, informed the shareholders beforehand through a letter, even before the annual meeting.

This time, even non-CEOs can take up the position of chairman. This will be the first time the company takes an action of such kind as an attempt to improve governance. Eligible executive and other board directors can sign up for the position, according to a spokesman for the business, Kelly Yeo.

The tech company is facing numerous battles at once, the major one being protecting its own shares from its competitors including the Chinese companies and Apple. It is also fighting against the hurdles it faces from the low prices of its product, semiconductors and other electronics. The CEO is expecting to face issues of oversupplying and difficult prices of its products including smartphones, memory chips, TVs and many others, he believes this year to be a tough one.

The South Korean company’s quarter earnings report in January showed that it was short on profit by 40% and it is now prepared to face a decline in the demand for its mobile phones globally. Since the company is aware of what it is to face, it has decided to expand its portfolio in market where there is less competition and is constructing different products including mobile displays in order to gain the profit it needs.

The organization is facing tough times but that is not stopping it from going towards developing different and new products. Its major rival in the market, Apple, has also reported to face a decline in the sales of its iPhones. CEO of the company said that the business is going to face extreme conditions this year. 

Samsung is not the only company that is showing concern for this year. Lucky for the tech company, its competitors are worried too about the future.

Apple Stock Jumps Up

The highly anticipated less expensive iPhone is likely to be the beacon of light the tech giant needs for boosting the sales.

For past few months, the most valuable company has been repeatedly finding itself in the vortex of stock shrinking value. The pivotal reason of declining value of the stock was the slowing down of the company’s flagship product –the iPhone. Now, both the investors and the analysts have envisioned that the launch of the highly anticipated new iPhone is likely to be the much needed positive catalyst to boost the sales of the tech giant.

The environment of fear and uncertainty substantially hammered down the Apple’s stock which is now valued closer to IBM –whose declining revenues have been disappointing Wall Street analysts for a long time now –than to technology behemoths Alphabet Inc. and Tesla Motors.  

The Wall Street has expected that the less expensive iPhone which will hit the shelves later in March will be essential in improving sales in developing countries like China. Two weeks since the inception of the bet on the new smartphone, the Apple shares have witnessed a jump of 5%. Moreover, the strategy of bolstering sales in China is commendable as the consumers in U.S. are less likely to upgrade their smartphones more often.

The current stakeholders of the company provided the following rationales for owning the stock which includes, the tech giant’s reliable cash generation, wild card potential for future game-changing products, and beaten down valuation. Moreover, Senior Portfolio Manager at Synovus Trust Company, which tentatively holds more than a million shares of the tech titan, Daniel Morgan expressed the following: "This company has a history of doing better than expectations and surprising people.  Where else can I go and find a company trading at 10 or 11 times earnings that has had such a great history?"

On Wednesday, the Silicon-Valley iPhone maker’s share traded at $100.97. In the lens of finance, the tech giant has been selling the share at 10.7 times its expected earnings per share over the next 12 months. Similarly, over the past two years, Apple’s average forward price-earnings-ratio has been 13. In its comparison, Alphabet Inc. –whose Android competes with Apple’s iOS –trades at 20 times expected earnings and Elon Musk revolutionary Tesla Motors –at the age of only 13 years –trades at humungous 132 times earnings. Moreover the tech company IBM –which is fervently transitioning to cloud computing and like services has a P/E of 10.2, according to the data deduced from Thomson Reuters’.

Motley Fool Funds portfolio manager, David Meier said: "Unless something big happens, (Apple) doesn't deserve to trade at 20 to 25 times earnings anymore. It's just too big. But as a high-quality company, could it trade at 15 times earnings? Certainly."

Simona Jankowski, an analyst at Goldman Sachs reported on Monday that through the new smaller 4-inch screen iPhone, the company is likely to boost the sales volumes by around 5% this year. This increase has not yet been incorporated in the Street expectations.

Analysts have not been much pessimist regarding the stock of Cupertino, Calif. firm. According to Thomson Reuters data, ever since the Apple’s stock encountered a 20% drop one out of 41 analysts recommended selling of the stock while the remaining analysts reiterated “Buy” rating. As of now, 38 analysts recommend “buying the stock” while none has suggested to sell the stock as yet.

Alibaba Ant Financial To Raise $3.1 Billion In Funding Round

Alibaba Financial Arm, Ant Financial Services Group, will be valued at $50 billion ahead of its IPO.

Alibaba Group Holding is a huge business that is dominating the Chinese e-commerce industry. The company owns and runs its online marketplaces under the main Alibaba business. It also wants to be more than just an e-commerce organization. The company expanded its footprints in different categories, such as cloud computing sector and online mobile payments etc., and it is performing really well in all of its businesses. The cloud-computing sector is one of the dominant forces in the industry and is reckoned by top companies throughout the world.

Alipay is China’s most used online payment platform. It is owned and operated by Alibaba Group’s financial affiliate Ant Financial Services Group. According to the Wall Street Journal, investors have come up with a valuation of a hefty amount exceeding $50 billion on the deal of Alibaba’s financial affiliate service. This is the next big thing for the financial tech sector in China.

Ant Financial Services Group is currently the most valuable Internet finance company of the region, which is all set to raise a value of nearly $3.1 billion (20 billion Yuan) in its recent funding round. Reportedly, the funding round will have several new and existing investors that will raise the valuation of Ant Financial Services Group to more than $50 billion. Sources close to the knowledge of this deal stated that the funding round will be completed by the mid of next month.

It is obvious that the new funding round will further bolster Alipay’s position in the Chinese market. The fresh fundraising will give Alibaba’s online payments platform more financial freedom to the finance arm, which is known for buying stakes in numerous Chinese businesses varying from lottery companies to postal savings bank. It recently acquired AGTech Holdings.

This is supposed to be the last funding round as the Financial Arm is closing in on its IPO. The funding round will perfectly set the stage for its Initial Public Offering. According to the bankers, it will post its IPO in as early as the beginning of 2017 and it will be on the Chinese stock exchange.

It is not only about Ant Financial Services Group but Chinese investors have been pouring money in the tech sector for a very long time now. The valuation of Chinese financial technology companies is soaring. Sources familiar with the matter said that WeBank – backed by Tencent Holdings – is capable of raising money at a massive $5.5 valuation. WeBank also competes directly with MYBank of Ant Financial.

Alibaba has created new revenue streams in the past years. As the economy of China declines, it is struggling to grow in the domestic market; hence plans to expand in international regions through deals and acquisitions. It still keeps the major 80% market share.

Microsoft Loses Interest In Slack

Microsoft to bolster Skype than acquire Slack.

"If you can’t beat them, you buy them" is the agenda followed by Microsoft Corporation religiously. The top executives belonging to the company have been following this ideology since a relatively long time now. As per a report that was published by Tech Crunch recently, the company had in mind since a relatively long time to acquire Slack, a messaging startup since the company came up with various video and voice calling features.

The tech giant is always looking for lucrative startups that offer the company new horizons for growth. For the same reason, the software behemoth wanted to acquire Slack. However, things seem to be relatively different now since the company does not seem to be interested in the entity anymore.

Slack’s recent service has made it a direct competitor to Skype which is Microsoft’s own video call service. Presently, the service is dominating the market in general. As per the recent trends, Slack is becoming a force to reckon in the market. The service at this point of time has almost 2.3 million active users daily. Amongst these almost 675,000 users are actually paying for the service. This eventually makes the service a potential threat for the enterprise who are looking to make a mark in the enterprise collaboration service industry.

Considering this perspective, it actually turns out to be a no brainer so as to why big tech companies might be interested in the venture. As per TechCrunch, almost eight to ten companies are actually willing to acquire Slack. The Windows 10 giant itself bid $8 billion for the venture. This seems to be a massive premium over the company’s latest valuation of $2.8 billion that surfaced right after a funding round of $160 million that took place in April, 2015.

Mr. Qi Lu, the Executive Vice President of Microsoft’s apps and services was the core person who was pushing the company to acquire Slack. However, all his efforts went down the drain when Chief Executive Officer Mr. Satya Nadella and Co-Founder of Microsoft Mr. Bill Gates waved them aside.

Both these gentlemen were of the belief that instead of buying out Slack to cut down on the competition, the best way to engage the Microsoft users is to increase the productivity of Skype by adding more features and services.

It seems like a relatively sane decision by the company to enhance the features if its own service rather than spending a hefty amount on a new acquisition just to curb on the competition. Healthy competition will help the company in making a significant change to its organizational structure in the long run.

Moreover, the decision by the Co-Founder and CEO also makes a lot of sense since MSFT owns an arsenal of video and voice calling service that is similar to the likes of Slack. The company has acquired and developed strategic partnerships with various firms in the enterprise domain, these companies are Lync, Yammer and SharePoint. However, Slack is great starting point for other giants who wish to compete with Skype.

Now You Can Share Your Spotify Playlist Via Facebook Messenger

Facebook has integrated Spotify with Messenger enabling the sharing of music merrier.

Facebook Inc. along with music streaming giant Spotify is geared up to make the sharing of music easier and fun. Both the companies have collaborated to come up with a new integration within Facebook Messenger that will enable individuals to quickly navigate to Spotify, to select a playlist or a song which can then be sent to a friend.

The company has launched this service and all those who use Facebook Messenger can take advantage of it. As experienced by various individuals, the service actually works however; many of them complain that the way it has been implemented is not that appalling.

The button that leads you to Spotify is disguised within the extremely appealing “..” menu on Messenger. Thus, when a user sends a playlist or a song then it becomes quite hard to figure out what needs to be done next. If a user taps on the picture of the item then the user is navigated to a massive view of the album art. In order to listen to the playlist or song, the user is required to tap on the “open” button which is extremely tiny placed underneath the image which will then transport you to the Spotify app.

Ironically, there is no way to follow these steps if you are using the platform via your desktop whatsoever. According to Spotify it needs to be noted that this integration is one of the first iteration. As per the company’s spokesperson while talking to The Verge, “"users can expect further enhancements as we continually work to improve the integration and ensure the best user experience possible."

On a better note, it is extremely easy to search for your favorite song or playlist, the moment you are navigated to the Spotify app. Irrespective of the numerous shortcomings; the accessibility of the service once you land on the platform is catchy and intriguing. The social media giant is working on an entire ecosystem of applications that are compatible with Messenger. Several alliances have been made in this regard but Spotify is one of the big names that have joined forces with the company. Several other big names are likely to surface during the company’s annual conference which is scheduled for April.

It needs to be noted here that the social media giant is striving hard to push Messenger and increase its usage amongst the masses. Since the time Messenger has been launched, the company is rendering the service for free with no advertisements on this platform whatsoever. However, things might just change now since the company will start monetizing the platform. Soon advertisements are going to surface on the app which will give a new medium for the company to capitalize on via advertisers.