Salto Partners

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Slowing iPhone Sales

In the runup to the release of Apple’s Q1 2016 earnings report Tuesday, one of the big unanswered questions was whether the iPhone could maintain its sales momentum. Q1 2015 iPhone sales hit a record 74.5 million units, and it’s possible the latest quarter’s shipments may not equal — let alone exceed — that mark. IDC has forecast of slowing sales industry-wide for 2016. The smartphone market will see the first single-digit growth year ever.

Here is what I told E-Commerce Times, “Sales of refurbished smartphones are taking off, and Apple has ventured into this area. Refurbished iPhones can be sold in price-sensitive but growing markets without any brand dilution. It could be tempting to develop a cheaper product that’s being sold utilizing a different brand name in order to win in Africa, India and Indonesia, but the better strategy is to sell refurbished iPhones.”

You can read the entire article here.

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Time Warner potentially an M&A target for Apple

Time Warner CEO Jeffrey Bewkes this week hinted at a meeting with investors that he might consider a sale of the company, according to the New York Post. Apple, which reportedly is interested in purchasing Time Warner or its media assets, is keeping a close eye on the discussions. Buying Time Warner’s assets would give the flailing Apple TV streaming service much-needed programming: CNN, Turner Sports, shows such as Sesame Street and Game of Thrones, as well as movies and TV shows from Warner Bros.

Here is what I told E-Commerce Times about this. “Around this time 16 years ago, AOL and Time Warner announced their megamerger, [and] Time Warner then had the same problems that it has now. There were struggles to provide any meaningful return on equity. It was hoped AOL could provide the necessary Internet eyeballs that would breathe life into the aging media giant. Now, Time Warner is in the same position looking for a white knight who can make sense of the media conglomerate. Apple is in a far superior position than AOL was. AOL merely used its high-flying shares as a currency to cash; Apple would be able to pay cash.”

You can read the entire article here.

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Spotify raised $526 million

Spotify has raised US$526 million in its latest round of funding, according to reports that surfaced Wednesday. Spotify has raised US$526 million in its latest round of funding, according to reports that surfaced Wednesday. Here is what I told E-Commerce Times about this news, “The combination of Spotify’s free service, which carries ads, and a premium paid version that’s ad-free, has let the company gain significant traction. On the other hand, Apple is leveraging its brand recognition to simply convert its global customer base into paying subscribers of its new streaming service.”

You can read the entire article here.

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Apple Maps

E-Commerce Times interviewed me about whether Apple has plans to further improve its Maps app, possibly by strengthening local listings, which are increasingly important to businesses. Here is what I told them, “Apple’s launch of its Maps app had a rough start in 2012. Since then, the application has gained significant traction. Apple Maps has the potential to be embedded in a variety of e-commerce services leveraging geographical context information. The application could open up new partnership models and revenue streams.”

You can read the entire article here.

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Litigation issue for Apple

Apple this week clomped into court to continue fighting a nearly 10-year-old class-action suit stemming from its use of digital rights management technology in iPods. The suit originally was brought in 2005. Here is what I said in an interview with E-Commerce Times.

“Apple and its new management have to decide: Is it worth their while to fight the class-action lawsuit tooth and nail? The company could settle out of court. That “won’t break the bank, affect Apple’s stock prices, or affect in any way the direction of Apple’s investment strategy going forward.

You can read the entire article here.