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Mac shipments lowest they've been in 1.5 years
Apple reported amazing earnings in its conference call last week, but SwitchtoaMac.com says not so fast -- while it's true that there was a lot of sun shining in Apple's report, there is one small shadow that they obviously didn't mention: their shipments of new Macs have started to drop off for the first time in 5.5 years. And they're the lowest they've been in a year and a half.A problem? Not a terrible one, but as you can see from the chart over there, there is a definite downturn in new Mac shipments. That might actually be good news for Apple, though -- with the economy doing a nice downturn lately, less inventory might shore up sales a bit, and keep their budgets in line with estimations. Of course it would also mean fewer Mac sales (and despite the recent popularity of the iPhone and the iPod, Macs still make up the majority of Apple's revenue), but if customers aren't there, that's better than having warehouses full of computers paid for but not actually sold.It's definitely not a sign that the company is going down in flames (in fact, all evidence says exactly the opposite), but it may be a sign that Apple's amazing growth is slowing down a bit.Thanks, Larry T!
Mobile market grinding to a halt in first half, year uncertain overall; Nokia could win
Though wireless is probably better positioned to weather a historically weak economy than many other industries, it's not bulletproof by any stretch of the imagination -- and following years of double-digit year-over-year growth, a slowdown of some sort is all but inevitable. The extent of the slowdown is a subject of endless debate among analysts, with some suggesting year-end contraction as low as 3.5 percent and others saying the market could slow down by as much as 10 percent or more, but one thing everyone seems to agree on is that smartphones are best positioned to continue to grow. Interestingly, the changing economic picture seems poised to entrench the big players like Nokia and Samsung and put the little guys even further behind, with Nokia -- despite its forecast of negative growth in '09 -- possibly adding to its already immense share of the global market. Sucks to hear that mobile sales are going downhill along with everything else, but hey, at least smartphones are continuing to win big, and 2009's shaping up to be another breakout year.
Sega Sammy losses bring layoffs, arcade closings
Life comes at you fast if you're Sega Sammy. Just a couple of years after increased profits had the company rolling in money, the company today announced that it plans to lose a whopping 26 billion yen (approx. $230 million) this fiscal year. Compared to the previous projection of a billion yen profit for the year, the turnaround comes as a bit of a shock.The main culprit behind the downturn seems to be the pachinko side of the business, which saw a predicted 85 percent fall in profits, and arcade sales, which switched from a slight profit last year to a 11.4 billion yen loss this year (damn that popular Wii).To staunch the bleeding, the company will be offering early retirement to 400 employees and closing 110 unprofitable amusement parks and arcades around Japan. Hard to believe the previous incarnation of this company once held the lion's share of the home video game market.
Economic woes extend to Second Life
Everywhere you look, it seems there's news of some real life business jumping into the virtual world of Second Life. Car companies, HR firms, clothing makers; you name it, it was being sold on the virtual frontier. But, as PRI's Marketplace reported earlier this week, many businesses are having trouble turning their virtual storefronts into real money.Despite the relatively low overhead costs of operating a Second Life business, companies like Starwood Hotels, AOL and Wells Fargo have been leaving their digital outposts in recent months. The problem of marketing to avatars was effectively summarized by reporter Janet Babin as "too many 7-foot-tall winged creatures flying around with no need for American Apparel's cotton T-shirts."Meanwhile, the Wall Street Journal is covering a Second Life banking scandal that could rival the sub-prime mortgage crisis for SL citizens. It seems some questionable banking schemes has led Linden Labs to shut down over a dozen virtual banks, causing a run on funds over the past few weeks. Makes us glad we kept our Linden Dollars under the virtual mattress.Read - Business exodus on MarketplaceRead - Banking scandal on Wall Street Journal
Analysts predict declining DVD sales in 2007
Although HDTVs were atop nearly everyone's holiday wish list, it seems that folks aren't splurging as much on their now-stagnant DVD collection as in years past, which could be an "early warning sign" for 2007. According to a recent report by Pali Research analysts Richard Greenfield and Mark Smaldon, next year could be the first year in consumer spending history that DVD sales actually decline. The report is based on Best Buy / Circuit City's relatively sluggish 2006 disc sales, and when you consider the sagging record sales on the music front, the scenario isn't too hard to fathom. Although there's no pinpointed reason why folks aren't divulging quite as much disposable income on DVDs, some analysts suggest that the onset of internet movie downloads and films on demand are cutting into actual disc sales -- something Comcast (and other providers) could have a hand in. Notably, folks are bearish when speculating about the HD DVD and Blu-ray impact, as they say that high definition films won't sell enough to put a dent in the expected downturn, which could bleed all the way into 2008.
