Apple Shares Plunge 10% on Slowing Growth, New Product Jitters
For years, Apple consistently beat Wall Street expectations, not only because the company habitually low-balled its financial projections, but also because it was growing at a rate and scale that was virtually unprecedented in the history of corporate America. It appears those days are over. For the third consecutive quarter, Apple, the world’s largest technology company, fell short of analyst estimates, sending the company’s stock down a whopping 10% in after-hours trading, wiping out nearly $50 billion in shareholder value. Although it reported record financial results, Apple’s slowing growth has raised questions about the next phase in the company’s evolution. (MORE: Apple Profit Surges 24% Ahead of Holiday Blowout; CEO Tim Cook Disses Microsoft) One thing is for sure: The numbers associated with Apple’s business are staggering. Apple sold 47.8 million iPhones and 22.9 million iPads during the holiday quarter, but both of those figures were about one million short of analyst ...
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Hey New Yorkers, Are You Ready to Hail a Taxi With Your iPhone?
New York City regulators have approved a pilot project to test the viability of smartphone-based taxi cab hailing. The decision comes after months of wrangling between city government and upstart transportation firms, most notably Uber. New York City Mayor Michael Bloomberg has fashioned himself as a tech champion, and he wants to cement his legacy as one of New York City’s greatest mayors. The pilot program, which is designed to test out the process in a city of eight million people, is a significant step forward for New York. Official support was overwhelming. The Taxi and Limousine Commission voted 7-0 in favor of the one-year pilot project. There were two abstentions. The test-run begins on February 15th. For the last several months, Uber CEO Travis Kalanick has been waging a campaign aimed at NYC officials, whose options have been limited by the city’s contract with in-taxi digital payment processor Verifone and other companies. (Uber’s payment model is credit card only, no ...
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Apple Profit Surges 24% Ahead of Holiday Blowout; CEO Tim Cook Disses Microsoft
Tech titan Apple reported a 24% increase in quarterly profit Thursday, but that figure failed to meet the sky-high expectations of Wall Street analysts. Sales of the company’s iPad tablet device fell short of analyst forecasts, as many consumers held off buying in anticipation of the new iPad Mini, which was released earlier this week. But now that the product has arrived to the market, along with the iPhone 5, which was introduced on Sept. 21, the holiday quarter is shaping up to be a monster for Apple. Apple said it expects to generate revenue of $52 billion over the holidays, a staggering figure that would set a record for the largest quarterly sales haul ever by a tech company, according to CNNMoney. Still, on an earnings-per-share basis, Apple’s forecast came in below analyst expectations. Investors were largely unfazed by the profit miss, however, and Apple’s shares only dipped about 1% in after-hours trading. (MORE: Apple Planning Pandora Rival: Is Web Radio Ready for ...
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Attention JC Penney Shoppers, Look Out for the Return of ‘Sales Galore’
After months of abysmal sales tallies, the Ron Johnson era is over at JC Penney. Now that Johnson’s “fair and square” no-coupons pricing policies have proved to be a failure, the department store will have to try something else to win back customers and stop the bleeding. But what? Mike Ullman, who was replaced as CEO when Johnson took over at JC Penney in 2011, and who began serving again as top executive when Johnson was pushed out, told the Wall Street Journal that he wasn’t planning on reverting to the old business model. “I wouldn’t recommend that we go back to the way J.C. Penney was when I left,” he said. “Things change.” And yet, in some ways the department store is clearly trying to resemble the JC Penney of old. Management has already announced that newspaper ads will feature coupons once again. Johnson seemed to find coupon usage distasteful and silly, likening it to a drug that consumers needed to be weaned off. A little over a year after JC Penney went “drug-free,” ...
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Avon Eliminating Hundreds of Jobs; Leaves Ireland
NEW YORK — Avon is eliminating more than 400 positions and abandoning or restructuring smaller or underperforming businesses in Africa, the Middle East and Europe, including an exit from Ireland. The company said Monday that the job cuts, which equate to about 1 percent of Avon’s 39,100 employees, will occur across all regions and segments. It is part of a turnaround plan under CEO Sheri McCoy, with the goal of achieving mid-single digit percentage revenue growth and $400 million in cost savings by 2016. Avon expects to complete almost all the cuts before year’s end. The New York company will take charges of around $35 million to $40 million before taxes and expects annualized savings of between $45 million and $50 million. (MORE: Report: Google Fiber Coming to Austin as Cities Race to Increase Web Speeds) The jobs cuts come on top of the 1,500 positions trimmed in December, when the company announced that it was exiting Vietnam and South Korea. The direct seller of beauty products ...
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