| |
|
The most interesting latest news on the topic: Business |
|
|
|
|
|
|
|
|
|
|
|
|
PayPal is taking the express lane to in-store mobile payment dominance -- but competitors' efforts and consumer suspicions may block the road to success.
PayPal is joining forces with several major retailers, including Toys R Us and Barnes & Noble, as it solidifies its retail presence to boost its movement into mobile payments. The eBay-owned company signed deals to partner with sixteen major retailers in total, starting with Home Depot several months ago. PayPal also inked a deal with VeriFone Systems, which will help it establish smooth in-store services using VeriFone's payment software. "An important part of our future is to get to ubiquity," PayPal exec Don Kingsborough explained. "There will be 40 million terminals eventually to let consumers buy in stores with PayPal. That's one of the big building blocks we have to get to ubiquity." PayPal is off to a solid start and has an established online payment history behind it, but the company will have to reprove its security credentials to entice in-store customers visiting brick-and-mortar retail locations. The company is buddying up with large, trusted retailers and gradually adding waves of partners to ensure success in this arena, but it still faces stiff competition from upcoming mobile payment alliance Isis. PayPal's name recognition and a strong reputation alone won't be enough to topple Isis, which is making a concentrated, comprehensive effort to offer exemplary security. The big banks and phone carriers attached to the Isis project may convince people to give Isis a whirl. Both mobile payment options, along with rivals Square and Google Wallet, must contend with consumer reluctance to trust mobile payment systems and fuel their adoption. PayPal's decision to directly link to trusted stores may assuage some wariness, but if the company's security is compromised even once it could devastate its reputation. Inking the retailer deals set the company on the right path, but to surge ahead of Isis and other rivals, the company needs to keep making alliances with retailers and cementing its place as a convenient and safe payment option. |
|
|
|
|
Apple plans to pay Foxconn half the cost of improving its labor conditions, as the company seeks to help Chinese workers while increasing overall consumer satisfaction.
Foxconn chief Terry Gou, speaking at his company's new headquarters in Shanghai, affirmed Apple's financial commitment to assisting its Chinese iPad and iPhone factories. "We've discovered that this is not a cost. It is a competitive strength," Gou explained of plans to improve Foxconn working conditions. "I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs." Gou did not, however, disclose a specific dollar amount or show exactly where Apple would spend its money. The idea of fair labor practices being a competitive strength for Apple nearly reverses the previous mindset of the Cupertino company, which first largely ignored reports from civil rights advocates and environmentalists about Foxconn's excessive overtime and unsafe working conditions. But both the iPhone maker and its manufacturing partner now realize the negative publicity could tarnish Apple's reputation, as well as acknowledge many consumers care deeply about the provenance of their products' origins. Apple's abundant profits and huge cash chest -- juxtaposed with the persistent image of beleaguered iPad workers laboring in dangerous factories and strenuous conditions -- likely also created a contradictory tension many found difficult to reconcile. Helping to shoulder the costs to address working conditions will likely be a wise investment on Apple's part, not only to help the workers that manufacture and assemble their products, but maintain their company reputation, especially as these issues continue to come under fire. Some workers injured in factory explosions say they never received compensation, for example, while other employees committed a rash of suicides, reportedly in desperation over low wages. In response to these incidents, consumer advocates like Change.org and Beijing's Institute of Public and Environmental Affairs condemned Apple for standing aside while its main supplier mistreated workers and polluted ground water. But starting in February this year, Apple asked the Fair Labor Association to investigate alleged abuses at several Foxconn plants and has worked to address the FLA's concerns since. Cook himself visited a factory in Zhengzhou, promising to actively oversee improvements. As Apple began to show increased interest, even the Chinese government took steps to placate its biggest contractor by vowing to crack down on Foxconn exploitations. In response to these pressures, Foxconn raised wages from 16 to 25 percent as well as reducing the workweek to 48 hours. The company also has plans to hire thousands of new workers and improve employee housing conditions. These measures are just a start, but Apple's recent campaign to improve Foxconn factories may eventually win the company points with its erstwhile detractors, but they come at a cost. Apple warns its planned investment in Foxconn improvements may raise iPad and iPhone prices, which at first seems counterproductive to consumer relations. But buyers are more likely to fork over cash if they can do so with a clean conscience, which consumers may think is worth an extra hundred dollars for the latest Apple gadget. |
|
|
|
|
Apple plans to pay Foxconn half the cost of improving its labor conditions, as the company seeks to help Chinese workers while increasing overall consumer satisfaction.
Foxconn chief Terry Gou, speaking at his company's new headquarters in Shanghai, affirmed Apple's financial commitment to assisting its Chinese iPad and iPhone factories. "We've discovered that this is not a cost. It is a competitive strength," Gou explained of plans to improve Foxconn working conditions. "I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs." Gou did not, however, disclose a specific dollar amount or show exactly where Apple would spend its money. The idea of fair labor practices being a competitive strength for Apple nearly reverses the previous mindset of the Cupertino company, which first largely ignored reports from civil rights advocates and environmentalists about Foxconn's excessive overtime and unsafe working conditions. But both the iPhone maker and its manufacturing partner now realize the negative publicity could tarnish Apple's reputation, as well as acknowledge many consumers care deeply about the provenance of their products' origins. Apple's abundant profits and huge cash chest -- juxtaposed with the persistent image of beleaguered iPad workers laboring in dangerous factories and strenuous conditions -- likely also created a contradictory tension many found difficult to reconcile. Helping to shoulder the costs to address working conditions will likely be a wise investment on Apple's part, not only to help the workers that manufacture and assemble their products, but maintain their company reputation, especially as these issues continue to come under fire. Some workers injured in factory explosions say they never received compensation, for example, while other employees committed a rash of suicides, reportedly in desperation over low wages. In response to these incidents, consumer advocates like Change.org and Beijing's Institute of Public and Environmental Affairs condemned Apple for standing aside while its main supplier mistreated workers and polluted ground water. But starting in February this year, Apple asked the Fair Labor Association to investigate alleged abuses at several Foxconn plants and has worked to address the FLA's concerns since. Cook himself visited a factory in Zhengzhou, promising to actively oversee improvements. As Apple began to show increased interest, even the Chinese government took steps to placate its biggest contractor by vowing to crack down on Foxconn exploitations. In response to these pressures, Foxconn raised wages from 16 to 25 percent as well as reducing the workweek to 48 hours. The company also has plans to hire thousands of new workers and improve employee housing conditions. These measures are just a start, but Apple's recent campaign to improve Foxconn factories may eventually win the company points with its erstwhile detractors, but they come at a cost. Apple warns its planned investment in Foxconn improvements may raise iPad and iPhone prices, which at first seems counterproductive to consumer relations. But buyers are more likely to fork over cash if they can do so with a clean conscience, which consumers may think is worth an extra hundred dollars for the latest Apple gadget. |
|
|
|
|
Facebook's IPO is expected to fetch as much as $100 billion, but investors are wondering whether Mark Zuckerberg, the man responsible for much of the company's success, is the right person to lead it into the future.
The social network's co-founder will control a 57 percent majority of his company's stock after it goes public later this month. Zuckerberg's stake is worth $25 billion, but despite all he's done to build the Facebook empire, analysts worry he may not have what it takes to be the CEO of a publicly traded super-power. In a world where people's moods and feelings can often be discovered just by looking at their Facebook status, Zuckerberg is far less predictable. He, much like his company, has always been a bit of a rebel. His actions in the business world are consistently inconsistent, something that's far easier to get away with when you work for yourself than when you are answering to a room full of angry investors. For example, Zuckerberg proclaimed publicly that Facebook was not interested in purchasing any other companies. Shortly after, he ponied up $1 billion for the photo editing mobile app Instagram, announcing the purchase on his Facebook timeline. Facebook this week acquired social discovery service Glancee, again contradicting Zuckerberg's previous proclamation. Maneuvers like this are likely part of the reason investors are tentative about the prospect of Zuckerberg as CEO of a publicly traded company. Major decisions such as this one can greatly affect stock price and are damaging when done suddenly and contradict something a company leader said just a few weeks earlier. And, even investors who do not question Zuckerberg's business decisions could be weary of his often-questionable behavior. The 27-year old CEO has proven his brilliance and matured well over the past few years, according to those who work closely with him, but there are still some growing pains. Zuckerberg was conspicuously absent at a recent meeting that brought bankers and analysts to his company's headquarters to discuss the upcoming IPO, and he has faced criticism in the past for being completely disengaged in matters that don't interest him. However, fears Zuckerberg might be getting cold feet about an IPO were put to rest at a meeting about Facebook's IPO this week in New York where Zuckerberg did show up -- dressed in a pair of jeans and a hoodie. The big shots on Wall Street may not be happy that Zuckerberg's style and attire don't match the level of seriousness the $100 billion sitting on the table commands, but they're going to have to accept that none of it would be there without him. |
|
|
|
|
Most think the success of e-books, coupled the with the absence of printing costs, means big bucks for publishers, but there is more to the story on why prices of books on the Kindle and iPad are on the rise.
When Amazon first launched the Kindle, publishers maintained the wholesale model it used with traditional book retailers. But the online retailer chose to sell books on the Kindle at a loss to make its new e-reader more appealing to buyers. The strategy eventually worked out for Amazon, but left publishers a product whose price value was greatly diminished. At the time of the original Kindle's launch, best-selling e-books were available for $10, less than half of what most physical retailers were charging. The low price of e-books on the Kindle misled customers to believe that publishers were now able to produce books electronically at a fraction of the cost of a physical copy. However, that is not the case. Whether a publisher publishes a book electronically or digitally it is still responsible for paying the author, editor, copy editor and design team. Compared to these expenses, the cost of actually creating a physical copy of the book is cheap. The cost of converting a book into e-text, for example, can range from 20 cents to 90 cents a page for a simple conversion, according to Sriram Panchanathan, senior vice president for digital solutions at Aptara, to Digital Book World. Larger publishers often hire teams of ten to fifteen people devoted to managing the digital conversion process, while smaller publishers hire two to three managers. Salaries for low-level managers average at $73,000 and can top out at $200,000, since their technology skills are at a premium. The technology costs can be high, but once Apple's iPad emerged and publishers had another vendor to sell books to, an opportunity for a new model emerged. Publishers were able to set the price of the e-book themselves. For every copy sold in the iBooks Store, the publisher took 70 percent of the cost and Apple took the remaining 30. As a result, publishers began selling books in Apple's bookstore at a higher price, and eventually started doing the same thing on the Kindle. This sudden increase in price gave users the perception that publishers were money- hungry, but what these companies were actually doing was trying to restore lost value to their product. The rising price of e-books may cause some readers to revert to buying physical copies of their favorite titles, but publishers are okay with that too. Profit margins for publishers are still better on print books than e-books. Although publishers may have reaped the benefits of increased e-book prices on both ends, that looks as if it will soon come to an end. Apple and publishers now find themselves embroiled in a lawsuit with the Department of Justice over colluding to raise e-book prices. If the DoJ has its way, e-book prices will likely drop, and the value of publishers products will change forever as the industry moves to find a new model. |
|
|
|
|
HTC's "One" series is boosting company fortunes, but is it enough to catch up with rivals? |
|
|
|
|
Verizon is on a mission to acquire enough spectrum to keep it on top, as the carrier's continued success depends on data revenue generated by high-speed networks. |
|
|
|
|
Facebook's Mark Zuckerberg has something new to put on his info page: lone billion-dollar dealmaker, as he apparently acted alone when he snapped up Instagram. |
|
|
|
|
Steve Jobs' "wilderness years" in exile from Apple, the focus of a recent article and upcoming biopic, offer a blueprint for struggling companies looking to reinvent themselves. |
|
|
|
|
Apple and its rivals appear to be starting a new war over SIM cards, while Chrome won the battle of the browsers, if only briefly, over Internet Explorer. Meanwhile, an iPhone owner learned that if he wants to get results, it's best to start at the top, and HP is merging its printer and PC divisions. Plus, if you're looking for a good scare, try Netflix, which is unveiling a 13-part original horror series early next year. Apple, Rivals Heading Toward SIM Card WarThe next-generation nano-SIM card is spurring another war between Apple and its rivals in Europe. The European Telecommunications Standards Institute is set to vote on Apple's plans for the new card. The problem is Apple's version requires a special drawer for the card, which is already designed into the iPad and iPhone. However, the competing design led by Nokia and backed by Motorola and RIM is described as having "significant technical advantages." The SIM design would be licensed to any organization, but some are worried the nano-SIM patents could fall under Apple's controls, further exacerbating the patent wars between tech companies.
Man Takes iPhone/AT&T Complaint To Tim Cook HimselfA frustrated iPhone owner is able to use his device in Canada, after he wrote a letter Apple CEO Tim Cook to complain after AT&T told the man to "just jailbreak" the device. The owner, while moving to Canada, learned his AT&T phone wouldn't work there, but he still wanted to use it. He called AT&T, who told him to call Apple, who told him to call AT&T. After the last call, when an AT&T employee told him to jailbreak the phone, the man had enough and complained in a letter written directly to Tim Cook. He said his entire family is immersed in the Apple brand and "Apple has touched every aspect of our lives and made it richer." His plea worked. Not long after he sent his letter, AT&T called the man to tell him Apple requested they fix the iPhone issue. After the man confirmed his ID number and plugged the phone into one of his four Mac computers, his iPhone is now unlocked.
HP to Merge Printer, PC BusinessesHewlett-Packard is merging its printer and PC divisions to save costs and boost growth. PC chief Todd Bradley will head the new unit. CEO Meg Whitman said the reorganization will increase effectiveness and efficiency. The company is also planning to unify other functions such as marketing across the business to promote a stronger brand and improve efficiency.
Netflix Adding Horror Series to Its LineupNetflix will add its exclusive horror series "Hemlock Grove" early next year, as the video streaming and DVD rental service continues to add original programming. "Hemlock Grove," an adaption of Brian McGreevy's novel by the same name, will star Famke Janssen and Bill Skarsgard in what Netflix says is a "gripping tale of murder, mystery and monsters set in a ravaged Pennsylvania steel town." The 13-part series' exact release date has not been announced.
Chrome Goes to the Top, BrieflyGoogle's Chrome web browser overtook Internet Explorer to become market leader globally for the first time for one weekend day, web analytics firm StatCounter said. "While it is only one day, this is a milestone," said Aodhan Cullen, StatCounter's chief executive. "At weekends, when people are free to choose what browser to use, many of them are selecting Chrome in preference to IE." On March 18, Chrome was used for 32.7 percent of all browsing, while Explorer had 32.5 percent share. However, when the weekend ended, people went back to using Internet Explorer, possibly because they were back at work and IE is used in more offices. Explorer remains on top worldwide, but is slipping slightly as other browsers like Chrome, Safari and Firefox become more widely used. |
|
|
|
|
|
|
|
|
Tags: