So Q4 is a quarter that companies from grocers to computer repair to smartphone companies look forward to. It’s the holiday shopping season, of course. However, smartphone companies might want to forget this one. Because smartphone growth ends 2018 in a drag.
So when I say drag, I mean sales grew just 0.1% from Q4 2017. Ouch. Apparently, high end smartphone lovers (think iPhone X, Google Pixel 3, Samsung Galaxy 9) saw no reason to upgrade. Apple got the worst of it. Because Q4 2018 was their worst quarter since early 2016. In fact, they told investors not to expect a prosperous Q1 2019 either. Their sales continue to decrease literally to this day.
Samsung isn’t fairing much better. Not only did they have a bad Q4 2018, but their overall sales in the recent past fell off. As I stated before, their Galaxy 9 phones aren’t helping matters much. They can partially thank Android’s Huawei phones. They sold over 60 million smartphones between October-December 2018. The majority of these sales come from China, one of the greatest smartphone markets around today. In fact, Huawei is probably the only one that had a good Q4 2018. Their sales for that period grew 14.8 % from Q4 2017. This is while everybody else struggled to break even from one year ago. Some publications went as far as calling 2018 the year of the Huawei.
However, for all others, smartphone growth ends 2018 in a drag. And if something revolutionary doesn’t come from the smartphone game in 2019, then I don’t see an end in sight. Location wise, the worst drops were right here in North America. Then follow that with China and the rest of Asia. That’s alarming for smartphone companies because these nations (US, China, India, Japan, etc) are their money maker. Some experts say that in mature markets, like the smartphone, sales start declining when pretty much everybody has them. But let’s hear from you. Why do you think smartphones are decking?
So I started in the computer repair business? in the early 2000s. Back then, our biggest source of advertising was the phone book. But today, phone books rarely exist. I don’t need to tell you that. Then I read an article that made me think. Traditional or digital advertising: the ad game is changing.
So the article says the inevitable is happening. They predict that 2019 will be the first year companies will spend more on digital ads than tradition ads. In fact, they say companies will spend over $109 in traditional ads. But they expect companies to spend over $129 billion. In 2018, traditional ads beat digital ads by $6 billion. The tide is turning.
And after digital ads beat traditional ads this year, don’t expect the trend to start. In fact, they say by 2023, businesses will spend 2/3 of all their ad spending on digital advertising. As of right now, Google and Facebook are the beneficiaries of this. They share a combined 60% of digital ad revenue that comes in. However, those numbers are slipping slightly. Guess who the clean up company is going to be? You guessed it, Amazon. Because in the next few years, their US ad revenue should increase by at least 50%.
When I say traditional advertising, I mean things like phone books (assuming they exist), radio, TV, newspaper, etc. When I say digital advertising, I mean basically all thing Internet, social media, and/or smartphone. Look at the Super Bowl. Gone are the days where we had to wait until Super Bowl night to watch the new ads. We can now watch them on You Tube and other places…before they even make it to their TV. As for our computer servicing company, you can bet our ad dollars are going digital. If you want your business to last longer than a year, then I suggest you invest in digital advertising nowadays. It’s not 1994 anymore (though sometimes I wish it was). It’s 2019. But it’s up to you: traditional or digital advertising?
So just when you think you know it all about IT support giant Amazon. Here is something else. Amazon operated deeply in China since the mid 2000s. This is an article about Amazon, China and NetEase.
So according to tech media reports, Amazon is talking with merging it’s Chinese import business. The company they plan to merge with is a massive Chinese online company they call Kaola. Also consider that an online Chinese mega store they call NetEase owns Kaola. So basically, NetEase is like China’s version of Amazon. They signed a merge deal in late 2018. But that’s about the only thing that came out it so far. So imagine if Amazon, Kaola and Net Ease all merged.
This deal has been difficult to put together. That’s why it’s not yet official. But things are moving in that direction. Because recently, Amazon made a deal with Western Union. This helps customers from Asia shop Amazon better…well…except from mainland China. How is that for irony? But Amazon does connect Chinese sellers and customers. Then consider Alibaba, one of Amazon’s main rivals. They’re making mergers as well. Now, Amazon reaches out to Kaola and Net Ease, Alibaba’s rival. So it’s going to be fun to see how this relationship between Amazon, China and NetEase plays out.
I hate to say the phrase ‘new world order’ because of what it sounds like. But that’s what Amazon wants to become in the IT service world, and the world in general. But they know in order to do that, they need China on board. After all, China is now the second biggest global economy in the world. However, as late as 2016, Amazon has less than 1% of China’s online market. Meanwhile, NetEase/Kaola has over 30%. So far, neither party is talking. I feel some kind of way about this potential merger. But from their perspective, do you see why Amazon wants this merger?
So what is 5G technology? It’s hard for even IT service and IT support experts to explain. But they expect 5G technology to move so fast that even machines will connect with other machines, with no effort. We’re talking speeds of 20 G/bps. However, these guys can explain it better than me.? That sounds great, right? But some say not really. Because they worry about the physical and medical consequence this may have. Is 5G technology dangerous, or even deadly?
So members of the medical community ask questions about great health risks. These risks are mostly about radiation, and too much of it. Also, this radiation comes from the phones as well as the cell phone towers. Furthermore, keep in mind the massive increase of signals not just to cell phones, but smart devices. We’re talking about things from smart security systems, smart voice speakers like Alexa, and that smart self-driving car that’s coming. Some studies even talk about a cancer risk from 5G. They did a study with lab rats. They gave the rats daily radiation doses for two years. The researchers were alarmed at the increase of brain and heart tumors in these lab rats.
Yes, I know how controversial it is to use lab rats. But I want to look at the bigger picture. Some will say there is no harm in 5G. They will say things like, “We used cell phones for 30 years. We’re still good”. But look at how often we’re using cell phone technology today. And it’s not just our phones, either. Smart technology is in about everything we use: radios, TVs, voice devices, security systems, and soon, it will drive our cars for us. Also, keep in mind there will be more cell towers to facilitate this 5G technology. They bring with them their own radiation. It adds up. Is 5G technology dangerous, or even deadly?
So a few months ago, Amazon announced three cities to put their second Amazon headquarters. Those cities were New York City, Arlington, VA and Nasheville, TN. However, yesterday, Amazon cancelled such plans. Amazon pulls out of New York City.
As you can expect, reaction about the IT support giant’s move came swift. Amazon asked for around $3 billion in government assistance. But this led to outrage among many New York leaders, especially progressives and union leaders. The cries against Amazon got louder and louder. Then, eventually, Amazon listened and backed out of the deal. But not everyone is happy. Governor Quomo and Mayor deBlasio say Amazon’s cancellation move hinders diversity and job growth. There were powerful people on both sides of the issue. But the negative attention this got soon won out. This led to Amazon pulls out of New York City.
We know the fight is not over. Because NY Senate Democrats vow to keep Amazon’s new headquarters out of NYC. But now, deBlasio blames Amazon for this fallout. He now says they could have worked with the community. But now, they blew it. For those keeping score, here’s the update. Back in 2017, Amazon announced a second headquarters. The first is in Seattle. They promised that city over 50,000 jobs and billions of dollars in revenue. However, in late 2018, they said the new offices would have to be split in two.
Actually, it came to 2 1/2. Because they chose NYC, Arlington, VA and Nashville, TN. But now, Amazon pulls out of New York City. Personally, I see where the opponents are coming from. Yes, Amazon promised thousands of jobs. But yet not a single New York contractor was hired yet. So I can how that angers people. I don’t feel sorry for Amazon at all. This is a trillion dollar company that asked the government for $3 billion. That’s like…I have a thousand dollars in my pocket. Then I ask a computer repair colleague? for $3. Doesn’t make sense, does it?
