TEN YEARS AFTER STEVE JOBS INTRODUCED THE ORIGINAL IPHONE, TIM COOK INTRODUCED IPHONE X
Ten years ago Steve Jobs took the stage to deliver the best product presentation in history, the introduction of the APPLE iPhone. Little did we now how this device would revolutionise the planet for the better.
Apple used its launch to showcase its all new campus and the product launch happened in the all new Steve Jobs theatre. Wall street had been waiting in anticipation as much as apple brand followers to see what demand for apples all important iPhone. As expected the iPhone came in three different versions and the pricing was also a surprise. The lower end iPhones drop in price but the new flagship iPhone now starts at $999. The iPhone X now seems more like a luxury good than just a phone.
Most of apples suppliers stock prices rose after the event signalling strong outlook for the new iPhones throughout the world. What is also significant for apple is its push into augmented reality. The next decade will be built on AI and augmented reality. The companies all new chip makes all of the new magic happen for the iPhone with many new advanced features being brought to life because of it. What wall street is anticipating most is the next wave of iPhone upgrade cycles which would bring in billions of profits over the next few quarters.
HOW WPP SIGNALED ECONOMIC OUTLOOK FOR 2018
WPP the worlds largest advertising services group had an interesting effect on wall street after reporting its quarterly earnings recently. WPP posted a decline in profits for the first time in recent quarters with poor outlook for 2018. Sir Martin Sorrell, the founder and CEO of WPP said that there are many factors which had lead to the decrease in his companies revenues and his guidance for 2018. Given the current low growth world, companies are focused on cost and marketing services are first the taste the impact. What was most important to wall street says Hansen Naidoo, Global CEO of Extrordinair Group is that its a preview of the cost cutting intitiatives by the worlds largest advertisers for 2018, this will impact the marketing services industry and the media industry at large.
Hansen Naidoo - Global CEO Extrordinair Group & BELOUGE
What is more worrying for wall street and the marketing/media industry is the payment terms that large advertisers are demanding. Companies like 3G capitals ABI-SAB/Miller are demanding 120 payment terms, with an extension to 150 days. The industry could collapse with these demands and would cause major consolidation in the advertising holding company space. Wall street took into account all of the correlated stocks which would be effected by this and adjusted them accordingly. Next year looks to be the same of low growth combined with low inflation which leads to a lack of pricing power for cpg brands.