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Did You Know?

Apple Sues Qualcomm

Apple filed a lawsuit against Qualcomm, claiming that Qualcomm’s licensing deals are anticompetitive.  The suit aims to find out how Qualcomm’s patent fees are calculated and whether their royalty rates stem from phone prices or microchip prices. Currently Qualcomm’s royalties are based on Apple’s cost of goods sold, almost 45% of the sales price.  However, Apple claims Qualcomm is double charging for their services by first charging Apple licensing fees and then charging royalties on the sales of the final product.  This lawsuit may serve as negotiating leverage for a future licensing deal between the two companies.  However, the lawsuit is expected to drag out for several years.

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Bloomberg BI


Technology Invading Retail

Online shopping has become the norm in recent years with companies like Amazon and Alibaba exploding onto the scene.  Experts believe that by the end of 2017, online retail will take up 45% of the total retail market space.  Amazon sales in 2016 were $100 billion, making companies like Wal-Mart, Target, and Macy’s expand their e-commerce presence. 

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Bloomberg BI


McDonalds to Offer Delivery in Order to Increase Sales

McDonalds plans to begin a delivery service in the United States, starting in primary locations in an effort to drive sales.  Test markets will start in the state of Florida with hopes to expand to other states.  McDonalds has already implemented this project in the Middle East and China.  McDonalds began delivering their food to customers in China in 2008.  Since then, it has tripled its delivery business and sales have seen a 30% rise in this region.  In 2016, delivery made up $1 billion of the company’s global sales.  The potential for McDonald’s delivery seems large.  In fact, within McDonalds major markets (U.S. France, U.K., Germany and Canada) 75% of the population lives within three miles of a McDonalds restaurant.

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Bloomberg BI


Intel Acquires Mobileye

A recent acquisition by Intel provides insight on the direction the company.  At the beginning of March, Intel placed an all cash bid worth $15.3 Billion to acquire Mobileye, a driver assistance technology company.  This acquisition shows that Intel is now looking to expand their auto division by developing advanced automotive chips for autonomous driving.  Intel now expects vehicle systems, data, and services to grow to a market opportunity of roughly $70 billion by 2030.  A market that Intel is now actively pursuing. 

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Bloomberg BI


Technology: Solid State Drives a Threat To Hard Disk Drives?

The technology industry is working towards a shift to higher-capacity drives such as solid state drives (SSD). SSD are currently much more expensive than hard disk drive (HDD), but industry experts expect the increase in demand for SSD’s will lead to gains from economies of scale as production increases, lowering their cost.

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Technology: Salesforce.com

Salesforce.com is a cloud computing company. They offer their product through the Cloud rather than though a legacy license model, like Microsoft. An increasing number of consumers have switched from legacy-licensed models to cloud-based companies like Salesforce, which is giving the company a competitive edge in the industry. Recently, one of their main growth-drivers has been their artificial intelligence product, Einstein.  In response, competitors have started to re-direct their focus to compete with Salesforce, requiring significant changes in their business model.

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H.S. Industries Co Ltd

This South Korean company had a total return from May 2016 to May 2017 of 65%. The chemical company was founded in 1869. One of its subsidiaries, Hwaseung Industries Co Ltd is principally engaged in the manufacture and distribution various plastic film products. 

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Eicher Motors LTD

This Indian Company manufactures light commercial vehicles, tractors, and two-wheelers. From May 2016 to May 2017, its total return was 30%. They produced India’s first agricultural tractor and created the mid-size motorcycle segment in India.

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