Archived Blog

Back in the first quarter of 2015, I had to start working on a blog as part of a course for my Media degree. However, there comes a time for a change and I have decided to start a personal blog on this website. This will be focused on reviews of things I use but aren't quite reviewed by other reviewers on the internet and interesting things I find that I would like to comment on. The former business blog lives on in my new start up at the Point Reyes Blog with a more evolved look and international outlook, considering my Masters in International Business. 

One of the minor changes from the original version as compared to this archived version is the sidebar. The sidebar has been removed as compared to the original version due to technical limitations of Squarespace. The sidebar will feature on the new personal blog instead.

None of the posts have been modified or edited since they were first published back in 2015 to reflect my writing evolution since then to present day. As a result, some of the infographics, links and/or images may not be available anymore. Feel free to reach out to me directly via the contact page for any questions.  

A look at the old design 

Goodbye Nokia

Nokia was once a powerhouse of mobile media and functionality. Now its all but relegated to commercial solutions or budget handsets. Where did this once champion go?

The new Microsoft logo for phone (Source: Microsoft)

Shares of Microsoft MSFT lost 4%, to AED 166.38 in extended trading on Jan 26th, 2014. The Redmond, Wash., company released its second-quarter results after the close of markets.  Microsoft shares fell after the software juggernaut reported its Nokia and Windows businesses undercut profits. Shares of Microsoft lost 4%, to AED 166.38 in extended trading Monday. In Redmond, the company released its second-quarter results after the close of markets.

The second-quarter results held some encouraging signs for Microsoft's transition from a software behemoth to a cloud-based business reliant on devices and value-added services.

But there were some weak spots beyond Nokia. Computing and gaming hardware sales fell 11% because of Xbox platform sales, while commercial licensing revenue — which includes its Windows business — fell 2%.

But how did Nokia end up being a thorn in Microsoft’s profits?

Microsoft Corporation - Quarterly EPS (Reported) | FindTheBest

Nokia first got together with Microsoft to build a mobile version of Microsoft Office that could run on Nokia's Symbian phones in August 2009. Though he would later become Nokia's CEO, Stephen Elop worked at Microsoft at the time and was part of the mobile Office efforts.

Stephen Elop, now the head of Microsoft's Business Division, jumped ship from Microsoft to become Nokia's CEO in September 2010. Elop replaced Olli-Pekka Kallasvuo and was hired to help usher in new changes at Nokia.

In February 2011, Microsoft CEO Steve Ballmer and Nokia CEO Stephen Elop announced that the two companies were teaming up to build Windows Phone devices. The hope was to bolster the Windows mobile ecosystem to a level where it could to compete with Google's Android and Apple's iOS platforms. There was also speculation in the tech community that the partnership was a prelude to an eventual Microsoft-Nokia merger.

The last stream of Nokia phones (Source: Microsoft)

Then in October 2011, Nokia announces its first Windows Phones at a press conference in London, the Lumia 800 and Lumia 710. The Lumia 800 was the flagship phone, selling first in the UK and parts of Europe for 420 euros, while the 710 was the first budget Windows Phone device in Nokia's lineup. Both phones shipped with Windows Phone 7.5 Mango and came with Nokia and Microsoft apps preinstalled.

The heads of Microsoft, Nokia, and AT&T Mobility gathered at CES 2012 to take the wraps off the Lumia 900. The newest flagship Windows Phone device flaunted a large screen, a Carl Zeiss lens in the camera, and LTE support.

Fast forward to July 2013 - Nokia shows off the newest flagship Windows Phone, the Lumia 1020. The Lumia 1020 wowed everyone with a 41-megapixel camera. The phone was the last major release before the Microsoft acquisition.

Stephen Elop (Source: AFP)

The Microsoft acquisition came as a surprise to no one, Stephen Elop has even a book written about his trojan like qualities and how he could possibly be the worst CEO ever. however what did shock a lot of purists was that Microsoft is ditching the Nokia brand name from new smartphones, less than a year after acquiring the Finnish firm's mobile devices division. New Nokia Lumia phones will instead be known as Microsoft Lumia, according to the company. The parts of Nokia that were not bought by Microsoft will continue to use the name.

The book on Elop insinuating his role in the Nokia takeover (Source: Amazon)

Nokia actually began life in the 19 century as a single paper mill in what was then part of the Russian Empire. It grew into an industrial conglomerate with interests in everything from galoshes to gas masks, with the push into electronics only coming in the 1960s.From the 1980s to 2000s it had a string of mobile hits but failed to keep on top of its smartphone competitors.

Windows Phone meanwhile continues to struggle against iOS and Android, with global market falling to 2.5 per cent. Microsoft will be hoping that Nokia’s ever-popular range of capable, low-end devices will eventually shuffle users in developing markets onto its OS, but nothing looks like it will shake Android and iOS in the high end.

There doesn’t seem to be a bright future for the Nokia brand. Many former purists have move on to newer more advanced platforms such as iOS and Android. And with the culling of the Nokia branding on high end smartphones, Microsoft has dealt a death blow to the Nokia Powerhouse that once was.

Prices as slippery as Oil

The price of oil is declining, contrary to the stability of the prices once previously thought immovable. However cheaper is not always better, and in the case of oil world economies depend on it. Here is a look at what is going on.

The smell of money hangs thick in the air as black crude oil bubbles up from what is the world's oldest oil well, located in the sleepy Polish village of Bobrka. Duration: 02:09

The world's first oil well in Poland (Source: AFP News Agency via YouTube)

Black crude oil bubbles up from what is billed as the world's oldest oil well, but this is not Texas or Saudi Arabia. This is the sleepy village of Bobrka in southern Poland which lays claim to the planet's first oil well and rig, one that is still pumping up enough black gold to be profitable.

It was dug and built by hand in 1860 under the watchful gaze of Polish pharmacist and inventor Ignacy Lukasiewicz, a humble man who pioneered the now ubiquitous use of petroleum by creating the kerosene lamp.

Thanks to him, "Bobrka became the birthplace of the world's oil industry", says Barbara Olejarz, who runs a local museum devoted to the origins of the sector and whose last name by coincidence means "oilman" in Polish. "It all began there,"

She tells AFP while pointing a finger at an obelisk built by Lukasiewicz and his circle to mark the launch of the oil field in 1854 and the founding of the world's first oil company.

The price of has fallen by more than 40% since June 2014, when it was AED 425.09 a barrel. It is now below AED 258.75 .This comes after nearly five years of stability. At a meeting in Vienna on November 27th, 2014, the Organization of Petroleum Exporting Countries (OPEC), which controls nearly 40% of the world market, failed to reach agreement on production curbs, sending the price tumbling even further. Also hard hit are oil-exporting countries such as Russia, Nigeria, Iran and Venezuela.

Shawn Driscoll, manager of the T. Rowe Price New Era Fund, a mutual fund that focuses on natural resource stocks said to Howard Gold from Market Watch

“We expected Saudi Arabia to cut (prices), frankly. Once Saudi Arabia didn’t cut production, it became clear to us there was a problem. Both supply and demand were heading in opposite directions more drastically than I expected. The underlying demand got a lot weaker, Libya came back, Iraqi volumes have been pretty good,” he explained.

(Source: Unknown)

In the week of January 20th to 27th, the pro-U.S. Yemeni government had fallen and King Abdullah of Saudi Arabia died and was succeeded by his 79-year-old half-brother Salman bin Abdulaziz al-Saud. These events transpired in what can be described as the world’s most volatile but energy rich regions. Yet despite this people in the oil industry are optimistic, even though Saudi Arabia is host to the world’s largest oil company. 

King Salman, Saudi Arabia’s new ruler, will keep Oil Minister Ali Al-Naimi in his post, bolstering expectations that he will continue the policy of maintaining crude output to preserve market share even as prices have plunged. King Salman, issued a royal decree to retain current ministers, according to the official Saudi Press Agency. He led OPEC’s Nov. 27 decision to maintain its crude production even as shale supplies spurred U.S. output to the highest in three decades. King Salman also reiterated on Saudi national television that he will maintain the policies of his predecessor.

In his previous capacity as crown prince, King Salman read a speech on behalf of the late monarch on Jan. 6 that confirmed the continuity of the country’s oil policy in the face of market “tensions” caused by slow growth in the global economy.

“These tensions aren’t new to the oil market, and we’ve dealt with them in the past with a solid will, with wisdom and experience, and we will deal with the current developments in the oil markets in the same way,” he said.

In theory, Saudi oil decisions are made by a Supreme Petroleum Council headed by the king and made up of senior members of the royal family, ministers and industry leaders.

In practice, decisions seem to have been left in Naimi’s hands, said Simon Henderson in an October research note for the Washington Institute. “Although he is in his late seventies and said to be looking forward to retirement, Naimi retains a firm grip,” Henderson said.

Saudi crude production averaged about 9.7 million barrels a day last year, according to data compiled by Bloomberg. The kingdom, with a population of 29 million, has AED 2,721.41 billion in reserve assets, or 6 percent of the world’s total, data compiled by Bloomberg show. The government forecast its budget deficit for this year will widen to 145 billion riyals (AED 144.16 billion) from 54 billion riyals in 2014.

The New Saudi King Salman bin Abdulaziz al-Saud, File Photo 2014 (Source: Saudi Media) 

The country will plug the deficit by borrowing and drawing on its financial reserves and will continue to spend on major projects including railroads, electricity, desalination and universities, the official Saudi Press Agency reported Dec. 25, 2014, citing Economy Minister Mohammad Al-Jasser. The 2015 budget forecast revenue falling to 715 billion riyals from 1.046 trillion riyals in 2014, assuming an oil price of AED 295.71 a barrel, John Sfakianakis, who served as an adviser to the Saudi finance ministry, said Dec. 26, 2014.

“Major policies are not going to be changed without a clear steer from the throne, but beyond the rumors that often circulate there is no evidence to suggest those decisions cannot be made,” Richard Mallinson, a London-based geopolitical analyst with Energy Aspects, said by e-mail to Bloomberg. 

Other factors that affect supply include weather (which prevents tankers loading) and by geopolitical upsets. If producers think the price is staying high, they invest, which after a lag boosts supply. Similarly, low prices lead to an investment drought. OPEC’s decisions shape expectations: if it curbs supply sharply, it can send prices spiking. Saudi Arabia produces nearly 10m barrels a day—a third of the OPEC total, this along ensure that oil prices would soon stabilize if other producers cull supply which would reinforce OPEC pricing schemes.

Did Bend-Gate affect Apple?

Did the Apple Bend-gate controversy negatively affect Apple who established themselves as the market leaders in terms of quality? Can Apple survive into the next iteration of the iPhone? Or is this end of the product line as we know it?

Does the iPhone 6 Plus bend under pressure? (Source: Unbox Therapy via YouTube)

It all began when reports on social media surfaced suggesting that the slightly larger iPhone 6 Plus could be bent in trouser pockets. This myth was further perpetuated when a YouTubber decided to test this theory by purposefully apply pressure to his iPhone 6 Plus (Video linked above.) Actual numbers of people affected by, for instance, inadvertently sitting on their mobiles were not forthcoming. But the discussion spread worldwide and “Bendgate” became an internet meme, even meriting discussion on BBC Radio 4’s Today programme.

(Source: Mike Rundle @flyosity via Twitter) 

But how would all this affect Apple and hinder the sales of the iPhone? According to Forbes these were some eventualities;

1. People putting off or not buying an iPhone - Due to all the publicity about 'bendgate' there are probably a number of people who will put off or maybe not even buy an iPhone. If 100,000 people decide to not buy an iPhone it would decrease Apple’s revenue by about AED 295.71 million (assuming AED 2,953.43 per iPhone which is the average of an iPhone 6 and 6 Plus 64GB models.)
2. People buying an iPhone 6 vs. 6 Plus - If people decide to opt for the smaller of the two screen sizes then the revenue hit is much smaller at AED 36.96 million (100,000 units times AED 369.64 delta of the two models) or 0.016% of December quarter’s projected revenue.
3. 14 day return policy - Apple has a policy that you can return a product, if you bought it directly from Apple, within 14 days. Since the iPhone 6 and 6 Plus only went on sale within the week of the scandal anyone who had one should been able to return it.
4. Redesigning the iPhone - Apple has purchased a large amount of equipment for its suppliers to use to build products, the bulk going to iPhones. Any redesign could increase the company’s capital commitment, which can be easily handled but could be in the tens if not hundreds of millions of dollars.

Apple Stock has steadily risen in past Two Years (Source: Google Finance)

However the iPhone 6 and 6 Plus was a resounding success internationally and Apple Inc (AAPL) stock has recovered from its decline after the "Bendgate" issue as it climbed once again to the AED 369.64 mark at AED 371.27 as of Sept. 26, 2014. Apple shares were up 2.6 percent following the drop in price when news of a bending iPhone 6 Plus took the Internet by storm.

Apple tried to counter #Bendgate by inviting some members of select media inside its secret testing lab where the company subjects all its products to extensive "stress tests."  The Cupertino-based tech giant claimed it had tested 30,000 iPhone 6 units inside the facility and reported that out of the millions of customers who bought the new iPhones, only nine people had actually filed a complaint. Apple had previously released an official statement and said the bending iPhone 6 Plus were "extremely rare" cases.

(Source: TyPhone.nl)

Fast forward to January 27, 2015—Apple today announced financial results for its fiscal 2015 first quarter ended December 27, 2014. The Company posted record quarterly revenue of AED 275.75 billion and record quarterly net profit of AED 66.54 billion, or AED 11.31 per diluted share. These results compare to revenue of AED 212.91 billion and net profit of AED 48.42 billion, or AED 7.65 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarter’s revenue.

The results were fueled by all-time record revenue from iPhone and Mac sales as well as record performance of the App Store. iPhone unit sales of 74.5 million also set a new record.

“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO. “Our revenue grew 30 percent over last year to AED 275.75 billion, and the execution by our teams to achieve these results was simply phenomenal.” 

“Our exceptional results produced EPS growth of 48 percent over last year, and AED 124.57 billion in operating cash flow during the quarter, an all-time record,” said Luca Maestri, Apple’s CFO. “We spent over AED 29.57 billion on our capital return program, bringing total returns to investors to almost AED 380.73 billion, over AED 210.7 billion of which occurred in just the last 12 months.”

Apple’s board of directors has declared a cash dividend of AED 1.74 per share of the Company’s common stock. Apple bounced back from the controversy with aplomb, however with the next iteration of the iPhone due soon, only time will tell if lessons have been learned. 

Who is Elon Musk?

This week’s episode of Simpsons (Jan 25th, 2015) was dedicated to Elon Musk, CEO of Tesla and SpaceX. These are considered to be some of the most innovative companies today, making huge strides in the electric car and commercial spaceflight industries. But who is the man really behind all this?

Musk standing next to the latest Tesla Model X Concept (Source: Forbes)

Elon was born in South Africa in 1971, he was the oldest of three children and was incredibly curious from a young age. After working his way through all of the books he could find, he started reading encyclopedias. When he turned 10, he was administered a test by IBM that showed he had one of the highest possible aptitudes for computer programming.

He got his his bachelor's degree in engineering and business from UPenn and intended to go to Stanford to get his ph.D. However he dropped out of school in two days and immersed himself in the Silicon Valley. Musk’s first big success was PayPal, which he helped create with Peter Thiel, Luke Nosek, Ken Howery, and Max Levchin. eBay bought the company for AED 5.54 billion in 2002.

Mr. Burns comes face to face with the man who revolutionized the auto industry, Elon Musk.

Source: The Simpsons on Fox - Animation Domination via YouTube

He went on to launch SpaceX in 2002, with the goal of making space travel available to consumers. On June 14, 2012, Musk celebrated the first successful mission by a private space company to deliver supplies to the International Space Station. SpaceX has received a AED 9.61 billion contract from NASA to develop the capsule for the Dragon V2 capsule, a manned space craft that will help transport astronauts and cargo to the International Space Station. Space X was recently in the news after the test of an unmanned space craft had gone haywire.

on-june-14-2012-musk-celebrated-the-first-successful-mission-by-a-private-space-company-to-deliver-supplies-to-the-international-space-station Source: Reuters

During the same time frame, he joined Tesla Motors in 2004, becoming CEO and product architect in 2008. Tesla Motors is enjoying enormous success due to its design and performance. The most recent model available to consumers, the P85D  has met with rave reviews.

(Source: SpaceX via Vine)

That doesn't mean it's always been easy for Musk. At the end of 2008, he fought through a near nervous breakdown to keep both Tesla and SpaceX alive when both nearly went bankrupt simultaneously. Rather than save one and let one die, he split all his remaining money between them, taking a risk and saving both.

Tesla Model S P85D in Ruby Red at the Detroit Auto Show 2015 (Source: Autoblog)

The South African-born self-made billionaire has often been compared to the Tony Stark character as portrayed in the "Iron Man" movies by Robert Downy Jr. He is only 44, and he's worth AED 34.38 billion, according to Forbes.

Aug. 3 (Bloomberg) -- "Bloomberg Risk Takers" profiles Elon Musk, the entrepreneur who helped create PayPal, built America's first viable fully electric car company, started the nation's biggest solar energy supplier, and may make commercial space travel a reality in our lifetime.

(Source: Bloomberg Business via YouTube)

But he’s also revered by others in the tech industry. In March, Google CEO Larry Page said he would rather hand over his wealth to Elon Musk rather than to a philanthropic cause. "He wants to go to Mars. That’s a worthy goal," Page told Charlie Rose. "You’re working because you want to change the world and make it better.” In October 2013, The Atlantic hailed Musk as possibly the greatest inventor alive. Vanity Fair named him the no. 1 disruptor in their "New Establishment" issue of 2014.

Oct. 10 (Bloomberg) -- Elon Musk, chief executive officer of Tesla Motors Inc., takes Bloomberg's Betty Liu for a test drive of the Tesla Model P85D, including using the car's autopilot feature. -- Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance.

(Source: Bloomberg Business via YouTube)

It is easy to see why Elon Musk is considered to be the equivalent of a Billionaire Playboy Philanthropist Tony Stark of the real world.