Tag Archives: aapl

‘India The Next China’ For Apple, Says UBS, And iPhone SE Will Help

“India is the next China for Apple ( AAPL ),” says a UBS analyst, who forecasts that the new iPhone SE will help Apple gain market share, albeit still at the high end, in India. Apple has priced the 4-inch iPhone SE starting at $399, about $100 less than expected. But that’s still a high price-tag for most consumers in India, says UBS analyst  Steven Milunovich in a research report. “Some people in developed countries prefer the one-handed 4-inch format, while the lower price attracts emerging-market owners,” wrote Milunovich. “India is the next China for Apple — while the SE price point is high for India, at least it buys new technology now.” The iPhone SE is an update to the 2.5-year-old iPhone 5S. It features upgraded internal components such as an A9 processor and a 12-megapixel camera. Citigroup analyst Jim Suva also says the iPhone SE will boost Apple’s share in India. “Apple currently has 2% share in India for calendar year 2015, and we believe if the company were to increase its market share to be similar to that in China (around 13%) this would increase iPhone units by 15-20 million units,” Suva said in a report. Apple has been investing in India throughout 2015, with a development center in Hyderabad and licenses to launch its own stores in the country. “With the iPhone SE, Apple will not really disrupt the Indian smartphone market but rather try to dominate high-end sales — 77% of smartphone sales in India in 2016 will be below $200,” said Ronan de Renesse, an analyst at U.K.-based Ovum, in a report. China’s slowing economy is a worry for its local smartphone makers as well as Apple. Apple’s December-quarter sales in China rose only 14% from the year-earlier quarter, down from 99% growth the preceding quarter. Xiaomi was the top smartphone seller in China in Q4, with 15% market share, followed closely by Huawei, with Apple in third place.

How Apple, Comcast, Google, Amazon Have Skin In FCC Set-Top Game

FCC Chairman Tom Wheeler aims to throw open the set-top box market, a plan that has Comcast ( CMCSA ), AT&T ( T ) and other pay-TV providers steaming but could take years to play out. The Federal Communications Commission plans to make it easier for consumers to switch from set-top boxes leased monthly from pay-TV companies to new devices sold at retail by consumer electronics or Internet companies. The pay-TV industry is worried about more than just losing revenue from monthly set-top fees, which usually run around $10. Apple ( AAPL ), Alphabet ’s ( GOOGL ) Google, Amazon.com ( AMZN ) and other new entrants would provide their own programming guide to consumers. Pay-TV firms fear losing the “customer relationship” and along with it the ability to collect viewership data, the key for targeted advertising. The FCC could approve Wheeler’s plan by year-end. Comcast, AT&T and other pay-TV firms would have two years to comply with technical standards that give new suppliers access to programming content. So in a worst-case situation, competing set-top TV devices could be available in 2019. As it is now, the set-top game is hit and miss. Some set-tops not from the pay-TV provider work with the pay-TV providers’ service, but others do not, depending on the set-top box, the pay-TV provider and the user’s region. And that scenario probably is not going to happen. Even if the current FCC approves Wheeler’s plan, a new chairman is expected to head the agency in 2017 after November’s presidential election. A Republican appointee would likely not follow through on the set-top market overhaul, while another Democratic FCC chairman might have other priorities, says Paul Gallant, an analyst at Guggenheim Partners. And if the FCC forges ahead with the set-top plan, a court battle is likely, and it could drag on. In the meantime, pay-TV companies would take steps to “maintain consumer inertia and impede adoption,” says Timothy Arcuri, an analyst at Cowen & Co. Cable companies have fought FCC attempts to open up the set-top market for 20 years. Will Set-Top Issue Become Moot Point? In a few years, the uproar over Wheeler’s proposal could be much ado over nothing, some observers say, as changes in technology and the way we all view video might make this a moot point. AT&T, for example, plans on selling DirecTV’s programming over the Internet starting late this year, and consumers won’t need the satellite TV broadcaster’s set-top boxes anymore. Some analysts say the future battle will be over the highest-spending consumers — the ones that now buy more premium channels,  pay-per-view and, in the future, might pony up for cloud movie storage or other perks. Those are the same subscribers advertisers will be interested in as well. Wheeler’s proposal zeros in on such users, and it’s “apt to emerge as the single biggest threat” to cable TV companies since satellite TV rivals emerged 30 years ago, says Citigroup analyst Jason Bazinet. “If Silicon Valley gets its way, pay-TV firms will provide the costly infrastructure to deliver bits of information,” Bazinet said in a report. “And they will provide programming at scale — relegating the pay-TV firms to being content wholesalers.” Here’s a run-down of some companies that have a stake in the set-top box battle, and the threats or opportunities it may present: Apple . It reportedly shelved plans for an Internet video service after programmers played hard ball in content negotiations. Under the new set-top rules, the FCC says that only pay-TV subscribers will gain access to programming and that copyright protections will be preserved. Even so, the FCC could clear a path for Apple into Web TV. Arris Group ( ARRS ). The supplier of set-top boxes to the cable industry seems vulnerable. But it could get a lift if cable TV firms race to upgrade their own set-top boxes. Barclays analyst Kannan Venkateshwar says Arris could also shift its focus to the retail channel. Amazon. The e-commerce leader, like Google, took part in an FCC task force that studied security issues in distributing content more broadly. Amazon, a player in subscription video-on-demand, has also been mulling a Web streaming service with live broadcast content. Comcast. By year-end, Comcast expects at least half of its 22 million video subscribers will be using Internet-ready, X1 set-top boxes — “the most advanced on the market today,” says a Moody’s report.  Barclays calls the X1 set-tops “arguably better than platforms like Apple TV today in terms of functionality. Whether Comcast can keep innovating is key if legal battles to halt the set-top initiative fail. Google. One of the FCC’s goals is making it easier for consumers to search for all content on both traditional pay-TV platforms, including video-on-demand, as well as across the Internet. That would play into Google’s strengths. And Google could swap its own advertising for the local ads sold by cable TV companies. Cable firms are worried that technical standards could result in revealing the “secret sauces” of set-top design to an archrival like Google, which “appears to be the primary backer” of the new set-top rules, says Jeffrey Wlodarczak, an analyst at Pivotal Research. Roku . The maker of video streaming devices has supported cable TV firms so far in the set-top box battle. Roku supplies devices to Time Warner Cable ( TWC ) and Charter Communications ( CHTR ), which both offer streaming deals to customers. Citigroup says pay TV firms prefer to have an app for their consumer offering, similar to how they work with Roku, rather than giving Google and others access to their content. Roku recently raised $45.5 million in a funding round. It’s not clear how the set-top box issue may impact any plans Roku has for an IPO. Rovi ( ROVI ). The provider of interactive programming guides main customers are pay-TV companies under licensing deals. Its new FanTV platform provides search and programming recommendations. Rovi also could be a “potential beneficiary,” says Cowen’s Arcuri, as cable TV firms try to improve offerings vs. new rivals. Tivo ( TIVO ). The  DVR pioneer has expanded beyond hardware sales and patent licensing to online subscription services. TiVo has been viewed as a possible seller of retail set-tops, like Google. But, its customers include small- and midsize pay TV companies . TiVo could provide more cable firms with next-generation features, including its cloud platform and mobile apps, analysts say.

Adobe Summit Sees World Gone Digital, From ‘Deadpool’ To Sea Of Data

Hit anti-superhero flick “Deadpool” got made with what’s been called an all-Adobe workflow . No wonder  Adobe Systems ( ADBE ) CEO Shantanu Narayen sounds a fan. In a keynote address kicking off the Adobe Summit 2016 digital marketing conference Tuesday, he used the cheeky comic book movie to illustrate how the content world’s gone digital. Adobe, of course, makes the Creative Cloud digital tools, such as Photoshop and Premiere Pro video editing software, and the Adobe Marketing Cloud tools used to track online content popularity and to power advertising decisions. The company gets a near-top IBD Composite Rating of 97, and the stock hit a new high in high volume Friday, after Adobe beat analyst views in its first-quarter earnings report and lifted its annual sales and earnings guidance. After February’s market dip, Adobe stock is back where it was in early January. How ‘Deadpool’ Went Digital “Last year one of the biggest media companies in the world decided to make an unknown superhero as big as Captain America without the usual big media and TV spots,” Narayen said in a livecast keynote  from the event in Las Vegas that he said drew more than 10,000 attendees. “Deadpool, a brash antihero most people had never heard of, wove his way into their lives through using one of the most innovative digital and social media campaigns ever.” “Deadpool,” by film folks at Twenty-First Century Fox ( FOX ), “shattered all box office records and is on the way to becoming the highest-grossing R-rated movie in film history,” Narayen said. He went on to talk about how MasterCard ( MA ), too, had moved to “pivot” a bit from traditional ad strategy toward online and social forms, exemplified by its #Priceless Surprises campaign that included things like winning a trip to the Grammy Awards. “Businesses must re-imagine how they interact with customers in a digital-first and digital-enabled world,” Narayen said, adding that “getting content to the right person at the right place at the right time takes data” — that is, the ability to analyze and target. Adobe Summit 2016 Debuts Adobe made several announcements in conjunction with its annual Summit show, including these three Adobe Marketing Cloud enhancements , among others: Adobe Certified Metrics , which standardizes some digital page and video viewership data that’s tracked in the Marketing Cloud. That will allow measurement partners, such as ComScore ( SCOR ) and Nielsen ( NLSN ), to “provide a complete view of total digital audience engagement across TV and digital,” which could boost ad-revenue opportunities. A new developer portal , Adobe.io. A TV recommendation engine called Adobe Primetime Recommendations, based on how the majority of U.S. households watch streaming TV and movies. It could be used by media companies and other kinds of firms to power what Adobe calls ” the next generation of TV recommendations.” TV Ratings For Digital Ad-Buying After viewing migrating away from the television itself toward online viewing via devices such as mobile phone screens and tablets, some online video viewing is now “going back to the living room,” Jeremy Helfand, Adobe’s vice president of video solutions, told IBD. “Over 20% of ‘TV Everywhere’ viewing is happening on connected devices — Apple ( AAPL ) TV, Roku or ( Sony ( SNE )) PlayStation or ( Microsoft ( MSFT )) Xbox, which is quite remarkable.” Historically, he says, “there was one currency — it was Nielsen — that’s what was used in order to purchase advertising,” Helfand said, “largely through upfronts and some residuals — that’s how advertising was bought and sold.” But tracking how many people are watching what these days, across a bunch of devices and websites, hasn’t been easy and that has hampered online video monetization efforts. Adobe Certified Metrics, which involves a developing partnership with ComScore following last year’s link-up with Nielsen, is one way that Adobe aims to make audience measurement easier and more standardized. “You’ve seen ComScore merge with Rentrak trying to bring digital and linear together just as Nielsen is,” Helfand said. “And you’re also seeing some media companies build their own definitions of who their audiences are, and go out to (ad) buyers and say ‘here’s my audience’.” The partnerships and platform development further Narayen’s goal of Adobe products and services being able to “make, monetize and measure” the digital experiences that people have in today’s world of content. The hope is that in turn will make Adobe software more crucial across a breadth of industries. In its Q1 report last week, digital marketing segment revenue at Adobe reached $406.2 million, which Pacific Crest Securities analyst Brendan Barnicle said, in a research note, was “better than the expectation of $402.7 million.” He added that the Summit event this week was “likely  to  provide  additional  positive  announcements  on  the marketing business.” Adobe added 798,000 new subscribers for its Creative Cloud businesses last quarter, and Barnicle noted that 30% of them were new to Adobe. He sees more CEOs driving adoption of Adobe products. “Like Salesforce.com ( CRM ) and Workday ( WDAY ), Adobe is seeing more CEOs make purchasing decisions,” he wrote. “In the 2016 Pacific Crest CFO Survey, both CIOs and CMOs saw a decline in the portion of the IT budget that they control. We believe that CEOs are making more IT decisions than ever before. They are looking to move their businesses to digital and to the cloud, and Adobe is one of several beneficiaries.” The Adobe Summit runs through Thursday, with actor George Clooney among speakers listed for the event — albeit most come more from the tech side than from Tinseltown. San Jose, Calif.-based Adobe has offices around the globe, including in Diegem, Belgium. It’s just outside Brussels, where terrorist attacks hit the airport and a subway station early Tuesday. Narayen started his talk with condolences, and despite its Summit event @Adobe said it was keeping its Twitter account silent for the day, in light of the Brussels situation.