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David Richards

OZ Interest Rates Not Cut As Expected

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At its meeting today, the Australian Reserve Bank Board decided to leave the cash rate unchanged at 3.25 per cent. In a statement to the markets Board Govenor Glenn Stevens said that Australia was in a better position than a lot of other Countries and that demand had not weakened.

The statement said that recent data confirm that the world economy has remained very weak following the sharp decline in demand that occurred late last year. The major industrial economies reported large contractions in output in the December quarter, as did a number of emerging market economies across Asia and eastern Europe. Many countries are likely to be experiencing further falls in output in the current quarter.

Conditions in global credit markets have improved since November, but sentiment remains fragile. Share prices have weakened and banking systems in several major countries are still under pressure, as authorities work towards a resolution of the balance-sheet problems. Significant macroeconomic policy stimulus is being put in place around the world, but it is too soon to see the effects of those measures.

In Australia, demand has not weakened as much as in other countries and, on the basis of currently available information, the Australian economy has not experienced the sort of large contraction seen elsewhere. The Australian financial system remains strong and the monetary policy transmission process is working to deliver large reductions in interest rates to end borrowers. Nonetheless, economic conditions are clearly weak, and given the speed and scale of the global economic deterioration and its effect on confidence, weak conditions are likely to continue in the near term. Inflation is likely to decline over time.

 

In response to that outlook, there has already been a major change in both monetary and fiscal policy. Market and mortgage rates are at very low levels by historical standards and business loan rates are below recent averages, reducing debt-servicing burdens considerably. Together with the substantial fiscal initiatives, the cumulative decline in interest rates will provide significant support to domestic demand over the period ahead. On this basis, notwithstanding evident economic weakness at present, the Board judged that the stance of monetary policy was appropriate for the moment. The Board will consider the position again at its next meeting.

Telstra To Kill Off T Box, Replaced By Roku Telstra TV Streaming Box With Netflix

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More than 860,000 Australians who invested in Telstra’s T Box service are set to find out that their entertainment box is set to get killed off in September to be replaced by a new Roku mini streaming box.

The brand new entry level Roku streaming box, will see Apple compete head on with Apple TV, Fetch TV and several other media players that are offering access to streaming services such as Netflix, Stan and Presto. 

Roku executives said that they have been talking to Telstra for several months, they also confirmed that the service will launch in September under the Telstra TV branding and that testing is already taking place in Australia. 

Andrew Ferrone, vice president of Pay TV at Roku said “As part of the strategic agreement Telstra will leverage the Roku streaming platform to deliver its new streaming service and player, Telstra TV, to consumers. 

The Telstra TV streaming service will launch later this year in Australia and will bundle BigPond movie service together with the most popular streaming services including Presto, Stan, Netflix and various catch up TV channels. Telstra is the fourth operator after Sky UK, Sky Deutschland and Sky Italia to join the Roku Powered licensing program”.

  “The Roku Powered program is a great solution for operators like Telstra looking to leverage our streaming platform and players to deliver a next-generation TV experience that integrates their own video services with third-party OTT services. Telstra is an industry leader and through our partnership they will bring a great streaming experience to Australian consumers this summer”

“Roku pioneered streaming and continues to innovate in new ways that make it easier and more convenient for consumers to watch entertainment they love. Licensing the Roku streaming platform enables us to launch a streaming service and player without the magnitude of cloud services, software and tools otherwise needed to become an OTT operator,” said Joe Pollard, group managing director Media and Marketing at Telstra.

 “Roku already has millions of pleased customers and thousands of content partners and a handful of licensing partners, the platform has clearly proven itself in terms of scalability, richness and, most importantly, engagement.” he added. 

“We hope to make this the leading streaming platform for SVOD services, moving forward,” said Joe Pollard, Telstra’s head of media and marketing. “Apple TV is more of a closed ecosystem, where this will be more of an open system.

“We think this will slot into the market well and there’s a big addressable audience, with 70 per cent odd of the population not paying in some way, shape or form for video content.”

The launch of Telstra TV in September will mean the T-Box device – of which there are more than 800,000 units in the market – will be axed as Telstra moves to pitch their offering to price conscious consumers. 

The new box will be sold at JB Hi Fi, pricing has not been officially announced however it is expected that the device will sell for around $109.95 outright or for $89 a month that will include a broadband connection with 200GB of monthly data and free local calls.

Telstra is also considering ?offering users of the Telstra TV service a “Sports Pass” that will allow customers to purchase a weekly pass to a selected sports channel, including Fox Sports.

Defunct Dick Smith, David Jones Deal Was ‘Lipstick On A Pig’

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Several Hi Fi and AV suppliers have approached David Jones directly after Ferrier Hodgson announced that the deal that saw Dick Smith flogging CE products in the department store would end this week.

Negotiated ahead of the float of Dick Smith by former CEO Nick Aboud, the deal only delivered 3% of Dick Smith overall revenue, it also resulted in Dick Smith paying David Jones a minimum sales guarantee.

The deal that was flawed from the start was used by Both Anchorage Capital and Dick Smith management to spruik the growth of the consumer electronics retailer ahead of the December 2013 float. At no stage did Aboud reveal the financials associated with the deal or whether the deal would actually deliver an upside for Dick Smith.

As part of the deal Dick Smith was forced to take over liability for millions of dollars’ worth of ageing stock that included plasma TV’s that were up to three years old aging Hi Fi systems and old iPod docks.

The deal that ends on Wednesday, January 27 is believed to have cost Dick Smith several million dollars.
 
Since the deal was negotiated David Jones which was struggling at the time of the deal being signed has been sold to Woolworths Holdings a South African Company who ChannelNews understands was approached to look at buying the Dick Smith retail chain which is now in administration with debts in excess of $400M.

The offer was rejected. 
  
The latest results from the department store’s South African owner, Woolworths Holdings, put like-for-like sales growth at 9.7 per cent while retail space increased by 1.5 per cent.

It’s understood Christmas sales at David Jones were significantly stronger in 2015 than 2014 and the 26-week result does not include the January clearance sales, which could further bolster the sales figures.

Australian Business Told To Kill Off Adobe Flash Due To Security Risks

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Adobe has been told to kill off Flash after it became a major security risk for networks.

Australian businesses that used Flash have been told to look at recoding content or face the real risk that content will not play in a browser when delivered.

Facebook chief security officer Alex Stamos last week offered Adobe some unsolicited advice: Stop trying to fix Flash and kill it outright.

 Google and Mozilla have already disabled Flash in their Web browsers after it was revealed that hackers were exploiting a bug in the software. 

The move is set to hit Companies that are running Flash based web sites in Australia as well as Companies who have invested in Flash based digital documentation and eBooks based around Adobe Flash technology. 

Flash, was once a popular software program that allowed designers to bring to life, pages formerly occupied by static text and photos by combining them with video clips and animated cartoons. 

Last week the program, criticized for years as a security risk and a drag on online progress, became a top contender for the technology dead pool said the Wall Street Journal.

The tech giants’ offensive was the latest chapter in Flash’s downfall and an illustration of how mobile devices- Apples iPhone in particular -are rapidly reshaping the business landscape.

Adobe continues to distribute Flash and regular security updates for users to download. If consumers remain concerned about it being a drag on their system or a security risk, they can uninstall it from their computers, though they might then not be able to view some video and interactive content.

But Danny Brian, vice president of research at Gartner Inc., views Flash’s demise as inevitable. “The writing has been on the wall for at least a year or two,” he said.

Introduced in the early 1990s as an easy-to-use digital animation program, Flash went on to be included on virtually every computer shipped. It was the strategic cornerstone of Adobe’s $3.4 billion purchase of Macromedia Inc. in 2005.

 YouTube founded its streaming video operation on the technology, and Netflix used it as well. Advertising agencies championed it as a way to produce eye-catching online ads. It seemed as though Flash was a permanent fixture of the Web.

Apple Boss Hit With Gay Questions On Late Show

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Tim Cook the CEO of Apple was hit with some tough questions when he appeared on the Late Show in the US last week.

There were plenty of candid moments, including Cook’s thoughts on the man he replaced as CEO (Steve Jobs) and the challenges stemming from his sexual orientation. Cook famously came out as gay last year at age 53,

In a question about being gay host Stephen Colbert said “You came out as gay recently. Was that an upgrade or just a feature that had not been turned on?”

He also talked about the new iPhone, the rumour that it’s developing a driverless car, Steve Jobs and other Apple products in development. 

On the question of driverless cars: “You guys aren’t big on secrets. Tell me about it.” Colbert said. 

He was also informed of the possibility that Colbert would stab him in the neck with a fondue fork if he changed the required charger for the iPhone again.

That last quip got a big laugh out of Cook, who seemed to get a kick out of Colbert throughout the interview.

The possibility of seeing an Apple driverless car on the road in the future came up as well, as Colbert reminded Cook that Uber CEO Travis Kalanick had outed the company’s plans on The Late Show the week before. 

On that subject, Cook was relatively mum, saying only “we look at a number of things along the way and we decide to really put our energies in a few of those.” If you can make heads or tails of that, be our guest.

Some say that the best question of all, came from Siri, Apple’s automated personal assistant. When Colbert asked the digital oracle what he should ask his guest, she hilariously replied “do me a favour, and ask him when I’m going to get a raise.”

See the full interview here.

Epson Slashes Profit Forcast By 50%

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Epson has slashed its profit forcasts by 50% following poor sales of printers. The downturn in the market could also affect HP.

Epson the world’s second- biggest printer maker has cut its full-year profit forecast by 50 percent because of falling prices for printers and liquid-crystal displays. Net income is estimated at 22 billion yen (US$197 million) in the year ending March 31, compared with the previous forecast of 44 billion yen, the Nagano prefecture, Japan-based company said  in a statemnent to the Tokyo Stock Exchange. That compares with a 55.7 billion yen profit a year earlier.

The company also cut its sales estimate 1.3 percent to 1.618 trillion yen. The company had 1.48 trillion sales a year earlier.

Falling prices for inkjet printers, mainly in Europe, are cutting into profit as lower-priced printers account for more of revenue, the company said. In the second half starting Oct. 1, sales of small LCDs used in projectors and LCD rear-projection televisions are expected to fall short of forecasts

EXCLUSIVE: Telstra Management Report “Massive Failure” For Sony Xperia Z3

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Up to 70% 0f Sony Xperia Z3 smartphones have failed when consumers have tried to reboot their smartphones after they have been activated at Telstra stores according to Telstra sources.

ChannelNews has been told that “hundreds” of Sony Xperia smartphones have “gone dead” within days of the device being activated on the Telstra network.

Telstra management who spoke to ChannelNews on the basis that we did not reveal their identity said that Sony were well aware of the issue as they had replaced the problem devices. 

Sony who has a track record of trying to manipulate the media is refusing to acknowledge the problem.

Initially ChannelNews spoke to Joshua Velling Account Director for Telstra at Sony Mobile Communications.

He did not deny the failure.

He said “I cannot make a comment on this issue, I have to pass you onto our PR Company Hausmann”. 
 
A spokesperson for Hausmann said after contacting Sony, “Sony does not comment on rumours or speculation”.

ChannelNews has been shown Telstra incident reports relating to the problem.

The issue is believed to have arisen in the second quarter of 2015 when Sony Mobile Communications only managed to sell 14,350 units.  

New smartphone sales figures issued by IDC reveal that Sony, only managed to sell 14,350 of their current model between April and June Vs 797,661 Apple iPhones and 760,001 and Samsung Galaxy smartphones.

The Company is not saying whether their biggest customer Telstra stopped ranging the Xperia smartphone until the problem was fixed.

Telstra store managers said that there was a period when there was “no new Xperia smartphones available” in stores as Sony moved to fix the problem.

The Sony Xperia 3 has been a problem smartphone for Sony. Issues reported around the world include, touchscreen unresponsive or glitchy, Texts won’t send, there has also been overheating problems.


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Other problems include a bug, where no notifications appear on the lock screen, rapid battery drain, call and notification volume too low, Wi-Fi slow, won’t connect, or dropping
Issue and the Z3 failing to turn on.

A Telstra manager said The XperiaZ3 has been a problem smartphone from day one. We have had constant problems. One of the biggest was when customers took the device home and then found that it would not switch on. We simply sent them back to Sony who supplied a replacement Xperia Z3.

We are still waiting for a response from Telstra. 

Smart New Wireless Speakers To Be Launched By Cambridge

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Cambridge Audio is set to launch a new AirPlay and Bluetooth-enabled speaker system in Australia called Minx Air.

The Cambridge Audio Minx Air 100 and 200 are set to be sold via specialist dealers in Australia. They allow a user to stream music from a smartphone or tablet.

The smaller Minx Air 100 model features two BMR (Balanced Mode Radiator) drivers, while the Minx Air 200 also adds a 6-inch subwoofer into the mix.

The speaker systems also have a Minx Air companion app, which allows users to access over 20,000 internet radio stations, as well as controlling volume and EQ settings.


Click to enlarge

Built using Cambridge Audio’s patented BMR speaker technology, the Cambridge Audio Minx 200 features Digital Signal Processing capabilities that combine with the speaker to produce louder and fuller sounds than similar sized traditional speakers.

An on-board subwoofer offers enhanced bass tones and 200 Watts of sound power will bounce sound around any room despite the Cambridge Audio Minx 200’s compact design.

The compact speaker system connects to the majority of smart devices, including any Bluetooth enabled phone, tablet or computer. Utilising the Apple AirPlay technology, the Cambridge Audio Minx 200 will synch with desktop based iTunes libraries and to Apple devices like the Apple iPhone 5 or iPad mini.

Once set-up, any synched device will remain connected and play any audio application through the Cambridge Audio Minx 200 speaker system automatically. Music streamed from services such as the BBC iPlayer Radio, Spotify or YouTube can also play through the Cambridge Audio Minx 200 via any of the connected smart devices.

Telstra First-Half Profits Soar

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Telstra has reported a first-half profit of almost $2 billion dollars an increase of 13 per over the same period last year. They have also raised their guidance for full-year revenues after achieving $12.4 billion in earnings.

“We have again exceeded analyst consensus, delivering not only strong top-line revenue growth but also accelerating earnings at the bottom-line,” Telstra chief executive Sol Trujillo said.

“Our transformation is revitalising every aspect of the business and we now rank at or near the top of our global peer group on many key financial performance measures.” 

Earnings upgrade

For the fiscal 2008 year, Telstra now expects total revenue to grow by 3 to 4 per cent, up from guidance of 2 to 3 per cent.
 
Earnings before interest, tax, depreciation and amortisation (EBITDA) is forecast to grow by 4 to 5 per cent, up from guidance of 3 to 4 per cent.

Earnings before interest and tax is projected to grow by 6 to 8 per cent, up from guidance of 5 to 7 per cent.

Telstra said its first half result was underpinned by strong sales across all its retail business units and key product, including broadband, mobiles, traditional fixed line or PSTN services and its online business Sensis.

“We are growing in the key markets of the future while securing our traditional core business,” Mr Trujillo said.

“Despite fierce price competition, we have again won broadband and post-paid mobile market share from competitors and grown average revenue per user (ARPU). We have again defied global trends by growing our retail PSTN business.

“And given this strong overall performance, we have raised guidance,” he said.

Mr Trujillo said the company was committed to taking part in government plans to set up a high speed broadband fibre-to-the-node network.

Telstra “looks forward” to talks with federal communications minister Stephen Conroy.

 

Major Top Level Management Shake Up At LG

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LG Electronics Korea, used the evening before Thanksgiving in the USA, to announce major management changes to their struggling smartphone operation as well as at to their appliance and air conditioning business.

This is normally done when a Company is trying to hide

information as most US news organisations have already cut back staff for what

is the biggest holiday break in the USA.


The major leadership change announced by LG, will see

control of LG Electronics operations split three ways between Jo Seong-jin,

president and CEO of Home Appliances & Air Solutions, Juno Cho, president

and CEO of Mobile Communications and David Jung, president and CFO. 

The Company that is struggling in the mobile business both

domestically in Australia and globally, is also facing some tough decisions

over their TV business with LG Display looking for partners to fund a new OLED

manufacturing plant.

In Q3 2015, LG Electronics generated US$3.67 billion, from

Home Entertainment, US$2.89 billion from LG Mobile Communications, US$3.55

billion from Home Appliance and Air Solutions and US$409.41 million from LG

Vehicle Components business.

In Australia LG has failed to announce a replacement for

Michael Doyle their former sales director who suddenly quit the Company two

months ago.

ChannelNews has been told by two leading recruitment

executives that several people have been offered the position but have refused

due to perceived “culture problems” that exist at the Korean Company.

One recruitment executive said “We have proposed a number of

people, but they have refused to put themselves up as candidates. Michael Doyle

was an excellent sales director who got business because of his personal

relationships with retailers, unfortunately he failed to develop a prodigy or

deputy who could easily be promoted to take on his role”.

Wayne Park, currently global sales and marketing officer,

will be executive vice president and head of LG’s European Operations.

 Brian Na will be

responsible for LG’s Overseas Sales and Marketing operations which includes

Australia where the Company recently appointed Angus Jones as the new General

Manager of Marketing for LG Australia’s marketing operations.

The big question now is how long will Jones last, he is a

former marketing manager at Dell, a Company who invested more in direct

response marketing than brand and mass consumer electronics marketing. 

 

To date Jones has refused any requests for an interview with ChannelNews.

During the past five years LG Australia has seen several

senior marketing executives join the Company only to quit after a short while

due to differences with Korean management and the work culture at the Korean Owned

Company.

 In 2009, the Company

appointed David Brand a former senior liquor industry marketing director, as

head of LG marketing, he quit in 2010 after LG Australia was fined $3 million

for falsifying claims about their air conditioners.

“David came on board in 2007 and has had a profound

influence over LG Australia’s marketing activities” said William Cho, the

then Managing Director, of LG Electronics Australia. “His efforts to

enhance LG’s brand within the local market have been heavily valued by all

parts of the business”.

Brand told ChannelNews that he could not get out of the

Company “quick enough”.

Also quitting in 2010 was Carli Wilson, the former Marketing

Manager of LG’s Communications Division.

LG Australia then appointed Nick Gibson as Marketing

Director, a former senior marketing executive at Electrolux and Johnson and

Johnson, he was also the former Vice President of Product Development Asia

Pacific for Fabric Care.

He quit after LG was exposed by Choice Australia for duping

Australian consumers by using an illegal device within some fridges to make

them appear more energy efficient. The Company was fined $4M by the Federal

Court and place on strict monitoring of their marketing.

Then in 2012 LG lured Lambro Skropidis to the Company, the

former marketing director of arch rival Samsung Australia, Skropidis also quit

the role this year to take up the role as head of marketing at Electrolux.

LG Australia’s Head of Mobile Communications, Jonathan

Banks, also quit the company in March 2015.

Globally David Jung will look after sales and marketing,

global production and quality management in the role of Business Administration

Officer, said LG.

LG said that they expect its next high-growth areas to be

energy, IT, B2B and its automotive business, according to a press release

announcing the management changes.

Freeing up these businesses will allow them more of an

opportunity to excel independently without getting bogged down with the poorer

performing areas.