Tag Archives: Fortune

Squeezing the Apple juice

We know that Apple has been playing games in the past, I myself lost close to $5,000 due to their little games, yet I also have had great joy with their devices, so when I read ‘Apple faces lawsuits over its intentional slowing of older iPhones‘, (at https://www.theguardian.com/technology/2017/dec/22/apple-lawsuits-intentional-slowing-older-iphones), I decided to remain a little cautious. One of the claims in the class action regarding the batteries was countered by Apple with: “Apple has admitted to slowing down the iPhone 6, 6S, 7 and SE when their batteries are either old, cold or have a low charge to prevent abrupt shutdowns“, this is odd as the Apple 7 is less than 15 months old (about the same time I got screwed with my Apple). What is a real danger is linked to the claim “Apple purposefully and knowingly released operating system software updates to iPhone 5, iPhone 6 and certain iPhone 7 phones that slowed the performance speeds of the central processing units (‘CPUs’) of these devices“, if proven could result in a massive fine and even could opt for the dropping of the price of the iPhone X by a lot (30%-60%), which would give the first wave owners additional reason to be angry too. One of the plaintiffs gave: “Instead, Apple appears to have obscured and concealed why older phones were slowing down.” which would be part of the issue and not the smallest part of it.

And Apple is not done, in the last few days, the media have been drowning us with all kinds of Apple news. Some come with the upcoming optional acquisition of Netflix, some come with the fact that the prices of Apple batteries have been slashed to a mere $29 dollars, Apple developer program fee waiver and even Fortune with ‘Why the Next iPhone X Could Be Apple’s Biggest Smartphone Ever‘ is taking part in all this. With “KGI Securities analyst Ming-Chi Kuo said that he believes Apple will offer an updated iPhone X this year to complement a larger, 6.5-inch iPhone X Plus model” we see a new twist. The people who spent $1829 on the ‘old’ model merely a week ago will see their model outdated whilst it is still in the warranty phase, that is if they didn’t spent the additional $299 for the Apple Care option. So as we see these waves we might lose side of the Business Insider who is giving us: “Apple’s battery controversy could cost the company over $10 billion in lost iPhone sales“, (at https://www.businessinsider.com.au/apple-battery-controversy-10-billion-lost-iphone-sales-2018-1).

Barclays gives us four main reason, but the one that matters is awareness, Apple had been left in the shadows for the longest of times and now that the actions of Apple are out, the people are taking more notice, the fact that the old X is now getting the shadow of the new X is equally an issue as sales could plummet. Who wants the old model now, when they could feel inferior as the Greek summer arrives and a larger screen edition, all for taking the bikini selfies on 6.5″ would be preferred by man and woman alike?

Yet in all this, the act of the accused battery drain scenario is now falling in the backdrop. Even Forbes who gives us “reducing the $79 charge for battery replacement services to $29 for 11 months “for anyone with an iPhone 6 or later” does not seem to give too much addition to all those iPhones that were working fine recently and now that the patch is there, the 5 year old iPhone 5, immaculate or not is to be regarded as obsolete. So much for the tribute to Steve Jobs that Tim Cook gave in September 2017. With “Steve’s spirit and timeless philosophy on life will always be the DNA of Apple“, which pretty much went out of the window through the use of a battery and an alleged software patch. Even as Vox gave us ‘Apple admitted it’s slowing down certain iPhones‘, yet how will this play in the class action? I am betting that their legal defence will rely on the words ‘miscommunication‘ and a ‘failure at the QA level‘, which does not make Apple innocent, it merely makes it look less guilty and whilst we now see all the massive waves of news (the Netflix rumour, which I got from a Citi source is the biggest limelight push) will aid in getting the water nice and muddy until the people care a little less on their bad investment of $1800+. The Vox article (at https://www.vox.com/2017/12/22/16807056/apple-slow-iphone-batteries) also has the Apple ‘party line’, which is: “Lithium-ion batteries become less capable of supplying peak current demands when in cold conditions, have a low battery charge or as they age over time, which can result in the device unexpectedly shutting down to protect its electronic components“, which is in my book a way of stating that the battery is the lemon not worth the Squeeze. Apple basically needed the Samsung Note 7 battery, but dreaded the inflammation of flames in the iPhone, we saw how that pounced Samsung, so as we see that their battery was not the solution (according to the software) we see the dangers that down the track your mobility and connectivity is set to a $29 battery and its 330 day lifeline. So is the larger screen about a larger screen, or will it be because the larger new iPhone X will be about the essentially desperately needed larger merely to keep the iPhone X switched on?

the most important part is seen in the statement by John Poole, founder of Primate Labs and Geekbench developer. with “Once the phone is shut down, the battery is in a state where the only way to get the phone back online is to plug it into a charger. If you’re out with your phone on the go, that’s clearly not a great situation to be in” we see that the negative evolution of iPhone from mobile smart phone to merely a phone and not a very smart one is at hand and for those on route, they get to live like the executives of 1975, on the road without a phone to appraise their customers of the delay that they are facing.

They could take a break and eat an apple, to keep the doctor and his/her ulcer medication away, but that would be the mean thought to have.


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Rated into immorality

Can anyone explain something weird to me? The news is given (at http://www.theguardian.com/technology/2014/nov/14/twitter-given-junk-credit-rating) to impress upon us a combination of values and steps that are beyond immoral. Consider the tweet, tweet twitter engine. I use it almost every day, it is the one unbiased part where we can follow events, people and companies so that we keep up to date, small messages that bring the actual information. A company that had a massive idea, is making money, when we see the quote “Jim Prosser, a spokesman for Twitter, pointed to S&P’s own words as comment: “Twitter will continue to experience very strong growth and not encounter a significant increase in competitive pressure.”“, we see issues, but is anyone seeing the question behind it? Then we see the one little gem hidden in all the text “The rating is unsolicited“, is this part of the issue? You see, as we look at companies, their revenue, their profit and some might consider their contribution, so as we look at it why is S&P suddenly decided ‘Twitter given junk credit rating‘? It seems to me that there is an economic shift going on. As companies are doing well, they are now getting downgraded for not meeting the expectations of some analysts.

Yet, where is this world going to?

Consider the application of morale (a word not found in a financiers dictionary) and reasoning for my thought train at present is the following: ‘Forex-rigging investigation: George Osborne gives full backing to SFO‘ (at http://www.theguardian.com/business/2014/nov/14/forex-rigging-investigation-george-osborne-sfo). Libor, Forex, Tesco and there is absolutely ZERO indication that this is just it. At the edge of reason we see the quote ‘Because I don’t want you to see any of my wobbly bits‘, which sounds ample and applicable as the financial district of happily ‘screw everyone over‘, it is all about the wobbly bits, according to Bridget Jones!

Consider the Forex articles. The second one is http://www.reuters.com/article/2014/11/14/us-banks-forex-crime-idUSKCN0IY0LV20141114. The issue is not just the events, the quote “Royal Bank of Scotland, HSBC, JP Morgan, Citigroup, Bank of America Corp and UBS were hit with penalties. Barclays is still in talks with authorities over a settlement“, which not just how far the issue has overstepped, but the issue is where banking laws are falling short, short to the extent that we have in access of half a decade. The issues continued after the banking collapse as the financial population continued to be nothing more than an eager courtesan to the bonus they so crave. The end result is a malignant decay of morals, standards and all this now (as I personally see it) on the standards as the poor are left with less than none, so Standards & Poor it is!

We now get back to what I regard to be a new level of exploited levelling. Consider the hidden simplicity that Libor held; now consider that debt ratings Moody’s, S&P, Fitch and the relative newbie Egan-Jones decide on ratings. Combine ‘how to lie with statistics‘ (a famous book by Darrell Huff) and the need to manipulate the market for 23 billionaires and we see the light of junk status made Twitter in a whole new light. Consider the basic state of an economy. A company sells, makes profit and pays taxes, a nation flourishes! This is a naive (remember my non-economic degree?) approach towards the worlds cloud of business. Investors, shareholders, analysts and raters are a cog within a machine of cogs. Yet this inner circular machine is different. It inflates, malleably changes and coaches towards a change that seems to be intent on syphoning and draining virtual cash flows into a different premise of profit, which is then turned to actual money. In an age of debts that go beyond the total of all treasuries, virtual numbers that have little to no foundation. The foundations and the levels they have been compromised towards are of a dimension we never imagined possible. Consider that the big banks have been fined in excess of 2.3 billion (at http://www.forbes.com/sites/halahtouryalai/2013/12/04/big-banks-fined-2-3b-over-illegal-libor-cartels-more-fines-on-the-way/), I wrote about it in ‘60% confiscated and counting in Cyprus!‘, on April 1st 2013, yet do not think this article to be a joke. I stated “If this is what frightens the US, then consider the consequences of a system like LIBOR being manipulated through the total value of trade. If that would have been off by 11.2%. Out of $1000T (UK and US combined) then that difference would be $112T“, several people laughed out loud then, yet now consider not just Libor, but the audited events of Tesco, the $5.3 trillion market of Forex and the fact that morality might be found in a church, but as we see the evidence, morality is not found in banks and financial institutions, where will it end?

With the Twitter events that question becomes more debatable and the impact that rating companies now impress upon profit turning companies have. Is it just about profit, or about the stated ‘anticipated statement of profit’? As certain ‘analysts’ claim that events are not exceeded, stock becomes junk, waves are created and as such, the welfare of companies are tweaked into a state of artificially changed state, some are inflated, some deflated, but always towards the claim of raters and analysts. The bottom line set towards an algorithm. Consider these states as we have seen not just the change of Tesco, but the events as they also gave way of downgraded profits with Sainsbury, which was not so vocally seen before that day in September. Interactions on many levels, based upon foundations that no one seems to question. Consider how the expectations were set by ‘analysts’ based upon data given to them and data available to them, now consider how Tesco had a quarter of a billion inflated and how the Pricewaterhouse Cooper auditors were ignorant of the inflated condition, now consider how Analysts used that element in predicting waves, the raters predicted and set the value and they are now setting the anticipation of investors and shareholders, an artificial pool with tidal wave creating capacity, and the two elements that have the ability to set the power and size of the waves. So how is your view of financial morality now? Consider the final part in this story. When we consider a story on Fortune titled ‘Twitter is junk, while Alibaba is class, ratings agencies say‘ (at http://fortune.com/2014/11/14/twitter-is-junk-while-alibaba-is-class-ratings-agencies-say/), why is that? Twitter is still holding its own, is it perhaps that the waves of Alibaba can be more easily influenced? Companies valued at the ability where the waves can be decided by the financial cogs, the stability of Twitter is less interesting to them, so they make way for whoever can aid in creating the waves these financial people want. (The last part you read is all speculation on my side), yet speculation or not, when we see the waves of Libor and Forex, are my thoughts so far out of bounds? How Twitter making millions is downgraded, how Tesco, beyond the inflated profits, still made a billion, it’s downgrade of 90% seems excessive beyond punishment, but Tesco is not a good example (because of their own internal manipulation), Consider the Fortune quote “And the fact that Alibaba is 90% dependent on a home market that is slowing, while acknowledged as a risk, doesn’t seem to scare the agencies“, it does not scare them, or it appeals the dependency of Alibaba to make certain decisions down the line? There is a side that seems ignored by all, I personally still have a hard time believing that (as my calculation went in ‘Price Waterfall Blooper‘ on October 25th) the price for 199 auditors could not find two events of inflation of each well over 100 million. Are my suspicions in regards to manipulations that far-fetched?

I wonder how long it will take for the law to catch up, for the Department of Public Prosecutions (DPP) or Crown Prosecuting Services (CPS) to get a handle on these events and deter these actions to such a degree. There should be additional questions as the raters are all American, in light of their shortfall that approaches 18 trillion at present. It seems that the US has no options, no solution and no resolution strategy, yet we see that the big four give ratings are all American. The last part is not an accusation in any way, yet the fact that the Auditors need new oversight, especially in the light of American auditing firm Pricewaterhouse Cooper as they will face questions regarding Tesco. As the 4 largest auditors include UK and Netherlands, why are there only American raters (of the proportions of the large 4)? With the risk of manipulation, should there not be a British and even a French or a Dutch rating service? Let’s not forget that PwC faces possible investigation, not because they are more likely than not guilty, but because their innocence needs to be proven beyond any doubt, especially in light of the amount of companies audited by them as well as the issue of 199 auditors (as I calculated them) not finding anything. When we consider the length of time that PwC has had Tesco as a customer, yet, these are two separate issues, there is no inkling of suspicion that auditors are part of any manipulation, yet the auditor’s data is essential to such steps.

Where is the solution?

Not sure if I know of one, laws can be made draconian to give much harsher sentence to the transgressors, but the issue is not the transgressors, the issue is that these ‘manipulators’ have by definition of law not broken any rules. Yes, we see the fines of Libor and soon Forex, these transgressions are seemingly clear, but what of the raters and the analysts? The issues of data are at the foundation here. That what is raw data and how it becomes processed data is now at the centre of it all. That what is construed to be the creator of waves through analysts, raters and auditors; Auditors collecting the data, analysts to manipulate (which is what they might see as a simple application of personal preference and weighting) and raters to set the pace for investors and shareholders.

So tell me, how wrong is MY view and why have these influential cogs not been dealt with through legislation?


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