Category: Money

News Media by Joe WilcoxOct 24, 20158:04 am

Hey, Washington Post (and Other Investigators), How About Comparing Candidate Spending Habits?

Let me preface: this is not a political endorsement for Donald Trump or anyone else. But the comedy and drama of this early campaign cycle sure is interesting. Among yesterday’s dramedy stories catching my attention: Washington Post on Mr. Trump telling super PACs to return contributions gathered in his name.

The presidential hopeful finances the campaign from his wealth and smaller donations from individual contributors. I got to wondering: Wouldn’t a candidate largely using his own money spend differently from someone getting to what amounts to free cash? There’s a stereotype that people spend their own (say, savings) more prudentially than what comes easily and freely (like credit). Is there a difference this early on among the would-be nominees in how or where they spend on the respective campaigns?

Apple by Joe WilcoxJul 21, 20154:40 pm

Apple Fiscal Q3 2015

After the closing bell today, Apple announced results for fiscal third quarter, which largely is congruent with calendar Q2 (End date, April 27). Broadly: $49.6 billion in sales, $10.7 billion net income, and $1.85 earnings per share. Year over year, revenue rose 33 percent and EPS by 45 percent. Apple guidance before the big reveal: Between $46 billion and $48 billion revenue. Wall Street consensus was $49.31 billion sales and $1.81 EPS. The Street’s estimates ranged from $46.9 billion to $53.64 billion.

Gross margin reached 39.7 percent compared to 39.4 percent annually and 40.8 percent sequentially. Company guidance: 38.5 percent to 39.5 percent. Once again, international sales accounted for most of the quarter’s sales: 64 percent, which is up from 59 percent the previous year but down from 69 percent three months earlier.

Apple by Joe WilcoxJul 18, 20151:05 pm

The Measure of Apple Watch Success is Percentage of Returns

Apple announces on Tuesday quarterly results that will for the first time include its wearable. Already, ahead of the big day, speculation soars about Apple Watch sales. Expect drama for sure, as CEO Time Cook explains how supply shortages constrained availability, leaving investors with more questions than answers.

I am more interested in data the company likely won’t reveal: return rates. I took back two. The first: I ordered online but sales started, after long delay, in the retail store before the device arrived. Rather than wait another week, I bought there and later returned the other, which the shop specialist sold seconds afterwards to a family that had come in looking for Apple Watch only to be told the Sport sold out. The second: A week later, I exchanged the aluminum timepiece for stainless steel. How many other people returned one for another because of taste or altogether because of dislike? The measure of Apple Watch success is percentage of returns.

Money by Joe WilcoxJul 16, 20158:19 am

I bought a Library on Prime Day

Well, July 15th is behind us and Amazon’s promise of deals bigger than Black Friday. If you were looking for Christmas in July, did you get it? I wasn’t that impressed with the selection of Lightning Deals and exclusives, but perhaps you were. Or not. My purchase, and call me crazy (some commenter usually does): I plunked down $143.86 for two years of Kindle Unlimited, saving 40 percent off the $9.99 for each of 24 months. The bookstore will become my personal library of sorts. There are many books I would read and reference for my professional writing but not necessarily buy.

Briefly, Amazon offered the 32GB Nexus 6 for $399 and Echo for $129—that’s $50 off. The smartphone sold out quick at that price but still remained available for $499 rest of the day. The other device built up a waitlist before finally being closed out. The 6-inch Kindle sold for $49, discounted from $79, and was still available as Midnight approached here on the West Coast (where I live; BetaNews offices are Eastern Time).

Living by Joe WilcoxJun 24, 201511:03 pm

Don’t Go There

While sitting with my 93 year-old father-in-law outside the Starbucks in San Diego’s Hillcrest district, I observed a directional sign for two shops, today. Then I read them as a sentence and laughed. Okay, you—think like an imaginative kid and not a stuck-up-the-butt literal adult: Ignore the K. It’s funny, yes?

Strangely, I came to live the sign not long later. As we walked into Trader Joe’s, a neighbor said hello on her way inside. I politely introduced my father-n-law, then she started on about the Neighborhood Watch group that she recently organized. The first meeting went well, but she wasn’t sure how to contact me. That’s when I blew her holy smoke up her arse.

Apple by Joe WilcoxJun 22, 201511:30 am

Apple Music backs off ‘play for no-pay’ plan that would withhold artist royalties

Now that Apple plans to compensate artists for the first three months of music streaming, it’s time to ask: Were the whiners grandstanding or sincere? The question mainly is meant for Taylor Swift, whose Father’s Day Tumblr post seems to have brought, eh, swift response to the—what I call—”play for no-pay” plan.

The company unveiled Apple Music during the World Wide Developer Conference on June 8. The streaming service will be free to subscribers for the first three months, with Apple initially choosing not to make royalty payments to artists. I condemned the ridiculous strategy last week. The company sits on a nearly $200 billion cash horde, and content creators are among its most loyal customers. Stiffing them makes no sense from several different perspectives, with good public relations being one and expressing thanks to artist customers being another.

Apple by Joe WilcoxJun 19, 20153:30 pm

Apple Music Takes from Artists to Give to Subscribers

For a company that generates more profits than any other ($18 billion during fiscal first quarter 2015), sits on a cash horde of nearly $200 billion, and has the gall to charge $150 for a watchband, stinginess is an unbecoming trait. Scratch that. Greediness. Putting profits before people, particularly devoted customers, when corporate advertising is all about how they matter more, is simply stupid public relations. In business, perception is everything.

So Apple’s reported decision to give away music for three months, without compensating artists, is cheapskates behavior that demands criticism, particularly about a company claiming that music means so much. Speaking to developers last week, CEO Tim Cook: “We love music, and music is such an important part of our lives and our culture”. Oh yeah? If it’s so important, why diminish its value? To zero. “We’ve had a long relationship with music at Apple”. For how much longer without artists’ cooperation? You don’t own the content, Mr. Cook.

Apple by Joe WilcoxApr 27, 20158:10 pm

Apple Fiscal Q2 2015 Snapshot

If there be ghosts, Tim Cook should expect sleepless nights ahead. Surely Steve Jobs can’t stand to be so overshadowed by his successor, who takes Apple where the cofounder couldn’t: Massive earnings and margins. Today, after the closing bell, the company reported yet another ridiculously blow-out quarter, largely lifted by iPhone. If the smartphone market ever collapses, Apple Armageddon will follow. In the present, momentum is unstoppable.

Some perspective: Apple’s net income was more than two-and-half times Microsoft’s during the same time period (calendar Q1 2015)—and 3.8 times that of Google. To reiterate, those comparisons are put-in-the-bank profits, not revenues. By the numbers: $58 billion in sales, $13.6 net income, and $2.33 earnings per share. Wall Street consensus was $56 billion revenue and $2.16 EPS. Year over year, revenue rose 26.6 percent and net sales by 33 percent.

Money by Joe WilcoxApr 14, 20155:03 pm

What Sucks about .Sucks Domains

As someone whose name also is his brand (welcome to 21st-century journalism), I watch with interest the new .sucks top-level domain, which is available for select preregistration through May 29—the only time to surely secure your .sucks. Yesterday, i looked to a reputable registrar to see what joewilcox.sucks would cost me. Cough, cough: $3,797.99 now, during the so-called Priority Access (e.g., Sunrise) period, or $407.98 when general pre-reg starts in June.

The new TLD is just one among hundreds of available or forthcoming domain extensions sanctioned by governing body ICANN. “I think the motivation behind the release of all these new domains is money”, says Roger Kay, who describes the sellers as shady land speculators. “The .sucks domain is particularly nasty”, the president of consultancy Endpoint Technologies Associates emphasizes. “It’s pretty close to blackmail”. But is it really? This analysis means to help you decide.

Apple by Joe WilcoxMar 25, 20155:10 pm

You Could Buy So Much More Than Apple Watch

As Apple Watch hype increases and the preorder date (April 10) approaches, a question gnaws me: Why would anyone spend so much money on the device? A buying poll I posted on BetaNews now exceeds 1,000 responses, which is large enough sample-size to get some sense of the readership’s intentions. Two percent of respondents—that’s 14 people—plan to buy the Edition model, which price ranges from $10,000 to $17,000. No disrespect, but talk about money to burn! Forty-five percent of respondents plan to purchase any Apple Watch, while another 5 percent of you are undecided.

So I wonder: What could you buy instead of Apple Watch? I intentionally single out the big spenders, settling on $13,000 as mean between $10K and $17K, being it’s such a lucky number and Apple looks to make lots of luck—eh, money—from the smartwatch. Before continuing, an important reminder: Functionally, there is no difference between the cheapo timepiece ($349) and its massively-expensive sibling. The price difference is all bling.

Responsibility by Joe WilcoxFeb 2, 20154:48 pm

Perpetual Prosperity Psychology and the Housing Bubble

Something about the housing bubble narrative bugs me: Conspiracy. Evil bankers conspired to bilk Americans by financing home loans to people who could never pay, to then repackage bad mortgages as good investment products. While I lauded Matt Taibbi news analyses in 2010 and 2013 for exposing financial institution malfeasance, the blame game always seemed to ignore one other party’s culpability: Borrowers.

New research paper “Changes in Buyer Composition and the Expansion of Credit During the Boom” is a fascinating post-bubble autopsy. Its conclusions, if they survive the test, rewrite the bubble narrative, which revision makes more sense to me.

News Media by Joe WilcoxJan 8, 20152:39 pm

Should I Kickstarter?

Warning: One word repeatedly used in this post will offend some people. I’m not one of them, and presumably neither is the main audience for what I propose.

Since August 2014, after acquiring domain journalism.wtf, I have pondered but not acted on launching a site that spotlights the worst—and occasionally the best—online news gathering. The question: Is there really a market for such a thing, and one that would assure financial sustainability? You can help me decide whether to proceed, and I anticipate most responses will come via social networks rather than comments on my personal site.