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Oonagh Reidy

Sony Slips $191M Loss As LCDs, PS3 Tumble

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Sony are counting its losses after the Japan earthquake as sales slump10%. The electronics giant has announced its results for the first quarter to June 30.


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However, there wasn’t a lot of good news for the Bravia maker, whose net profit slumped into negative territory, 15.5bn yen or $191m, compared to a profit of 25.7bn yen the same period in 2010. 

Overall, sales for Q1 of its fiscal year, covering the period April – June, slumped to 1,494.9 billion yen (U.S$ 8,456m), a drop of 10% compared to same quarter last year, which Sony blamed partly on knock on effect of the earthquake in March leading to decrease in consumer products (CPS) business, which includes gaming, audio and TV. 
Sales in the key sector fell 17.9% year-on-year to 732.3 billion yen (US$9,040 m), blamed on falling LCD sales, poor markets in the U.S and Europe, and price competition in PC category. 
Sales of its PlayStation 3 also went south, recording 1.8 million units sales in the period – a fall of 0.6m compared to a year ago. 

However, LCD sales in Japan bucked the trend, jumping due to higher demand as the country moves to full digital broadcasting this month.  

Video camera sales were also down due to “contraction” in the sector, it said. 
Sony’s operating income decreased for the first quarter was 27.5 billion yen  or US$340m, which marked a shocking 59% drop (local currency), due to a dip in gross profit  and deteriorating cost of sales ratio. 

Factors cited included the negative impact of the earthquake as well as the general “deterioration of the electronics business” Sony said today. It also blamed declining income on additional expenses associated with the hacking of its PlayStation network earlier this year. 

Sony also incurred other “incremental charges” including those associated with the earthquake clean up of 5.3 billion yen (U.S.$66 million). These included restoration repairing of factory fixed assets damaged in addition to idle manufacturing capacity costs. 
However, 1.3 billion yen (16 million U.S. dollars) of these charges has been offset by insurance claims “deemed probable” to be granted.  
However, there is some light at the end of the tunnel, it seems. Business operations hit by the quake are recovering “faster than anticipated” in its May forecast. 
   

 

Sony are also predicting lower LCD sales compared to the May forecast and more unfavorable foreign exchange rates, forcing it to cut forecast earnings for the full-year by 25% to 60bn yen, down from an expected 80bn yen. 
The sales outlook is also gloomy for the remainder of the fiscal year for the Japanese giant, citing poor business environment. 

As in its previous quarter, Sony cited production “issues” in some categories, constraints in its supply chain and lower production capacity due to damaged manufacturing equipment.  

On the pictures front, Sony was saved by DVD releases including The Green Hornet, Battle: Los Angeles and Just Go With It, pushing sales 9.3% year-on-year to 144.4 billion yen or $1,7bn (23% increase in U.S.currency).

Sony Music recorded sales of 109.6 billion yen or $1.3bn “reflecting strong sales of a number of key releases” including Adele’s 21, Beyonce’s 4, Foo Fighters’ Wasting Light and music from hit TV show Glee. 


Phone sales for its business, Sony Ericisson, slumped 32.1% to 1.1 billion euros ($1.7bn) due to constrained components supply and a decline in basic feature phones shipped as consumers focus on smartphones.  

To this end, SE has gone on an Android binge, releasing a slew of models this year, in a bid to play catch up with smartphone rivals like Apple and Samsung. 

 

Losses before taxes of 43 million euros ($61m) was recorded for the quarter at the European phone giant. 





Forget Facebook, Microsoft Nabs Yammer $1.2Bn

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Software giant buys the ‘Enterprise Social Network’

Microsoft announced a definitive agreement to acquire Yammer, for $1.2 billion in cash.

The deal was flagged several weeks ago, although a far higher price tag of $12bn was reported.

Yammer allows instant messaging between employees, is a “private” social network and would be an important weapon against the might of messaging services from Google and even Facebook.

Microsoft says it plans to “accelerate Yammer’s adoption alongside Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype.”

Yammer will continue to develop its standalone service and its commitment to cross-platform experiences, Microsoft said in a statement.

Yammer will be absorbed by Microsoft’s Office Division, led by division President Kurt DelBene.

“The acquisition of Yammer underscores our commitment to deliver technology that businesses need and people love,” said Steve Ballmer, CEO, Microsoft.

“Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”

Launched in 2008, It currently has five million users in over 200,000 organisations in the three years (including 85%of the Fortune 500).

Major corporate users include Deloitte, Ford, Nationwide, 7-Eleven, Orbitz Worldwide and Telefonica O2. And Yammer has a few things in common with Facebook – both the Enterprise and Network share the same first investor, Peter Thiel.

 

“When we started Yammer four years ago, we set out to do something big, said David Sacks Yammer CEO, who says “joining Microsoft will accelerate that vision and give us access to the technologies, expertise and resources we’ll need to scale and innovate.”

The acquisition is still subject to regulatory approval, however.

Yammer was named “Innovative Application Software Company Under $100 Million to Watch,” by analysts IDC last year.

Woolies Fly & Collect “Revolution”

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Going to the supermarket is soo old school.

Get your shopping when you step off a plane.  

Woolworths launched a revolutionary airport grocery collection service at Melbourne Airport this week, meaning shoppers no longer have to stop off at the supermarket on the way home after a long journey. 

The ‘click&collect’ service allows customers to pre-order their groceries before they get on a place, and collect their groceries after they step off the plane in Melbourne. 
Woolies customers can order their groceries up to seven days in advance online or via the Woolies mobile app. However, we can’t help but wonder whether chilled items like milk and meat will last, say, if a flight is delayed. 
The goods are pick up groceries from staff at the Woolworths click&collect building at the Melbourne Airport terminal forecourt. Collection times between 9am – 9pm, seven days a week. 
No word yet if the supermarket giant has plans to move beyond Victoria. 

“[Woolies] customers are increasingly embracing online and mobile platforms as a convenient and hassle free way to shop,” said Kate Langford, Head of Online Business Development, Woolworths Supermarkets. 

“Melbourne Airport is the second busiest airport in the country and the Sydney to Melbourne route is the fourth busiest route in the world so we were excited to work with Melbourne Airport to launch this new service.” 

The new service will also be handy for the 14,000+ people who work at the Melbourne Airport. 

Woolies is going gung-ho online and in-app shopping with other click&collect options including from 130 supermarkets, and click&collect drive thru.

Amazon Kindle II To “Light Up”?

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Amazon Kindle to strike again… this time with a front light.


Shining light: Knidle eReader with front lamp?

The Amazon whizzes are said to be tapping away on a new Kindle model which should be released by July, sources who bore witness to the new eReader told Reuters.

The new ereader will have a novel front light meaning readers will no longer need a lamp light (or attempt to read in the dark).

And as per previous Kindles it will run E Ink’s display technology and there will be 3G and WiFi models on sale.

 And Amazon are also getting set to release a new Kindle Fire tablet, according to the source – expected to be a larger 8.9 inches model  – compared to current 7″ Fire, although the tab which sold like hot cakes in the US for $199 is not yet available in Oz.

This news comes as rumour mill is heaving with stories that Apple are planning to release a cut price 7″  iPad to compete with the low end niche carved out by Kindle Fire.

Its On: Foxtel $2bn Regional Invasion Nears

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Enlarged Foxtel to go “national” as $2bn acquisition of Austar gets green light.
Foxtel say its new mammoth Pay TV “national service” will deliver parity on digital viewing between city and regional consumers after the ACCC accepted a set of undertakings offered by the company to facilitate the proposed merger with regional player Austar.

“Foxtel and Austar will join forces to create a national subscription television service for all consumers,” Foxtel confirmed in a statement.

The $2bn transaction is still subject to final Federal Court approval set for 13 April, however.

Foxtel’s CEO Richard Freudenstein says the deal is “is a great outcome for consumers because we will now be able to create a company of scale that will deliver innovative new digital products and services, and parity for regional and city customers.”

“The new national Foxtel will be one of Australia’s most progressive and dynamic media companies” and  will spend close to $600 million on new Aussie content a year.

“Combining Foxtel and Austar will give us the scale to keep investing and innovating in both content and technology for consumers across Australia in an increasingly competitive market,” Mr Freudenstein said.

Foxtel services the major metropolitan cities and Western Australia, while Austar, headed by CEO John Porter, services rural and regional Australia.

Foxtel will also have full ownership of subscription TV group XYZ Entertainment, owner of Lifestyle channels including LifeStyle You, V Channel and Arena, Discovery Channel, once the merger is completed, it confirmed.

Currently, Austar owns 50% of XYZ with Foxtel owning the remaining 50%.

The consumer watchdog, ACCC, has also demanded the company agree to a series of under takings that prevent Foxtel from buying exclusive internet protocol television (IPTV) rights for a range of TV shows and movies.

Foxtel also is banned from exclusively buying any movies delivered on a transactional video-on-demand basis.

The pay TV giant also is prevented from buying exclusive mobile rights to TV shows and movies where the rights are sought by its competitors to combine with IPTV rights.

“The $2bn merger will benefit the 2.2 million subscriber households and over 6 million viewers of our combined platforms, as well as potential consumers,” said Freudenstein.

Telstra, which owns a 50% stake in Foxtel, said it welcomes today decision for the Pay TV giant buy regional player Austar, which will see it own 97% of the subscription market.

And its not just Foxtel owners News Limited, Telstra and Consolidated Media Group that should be jumping for joy- its also a “win win ” for T Box and Austar users access to content, says Telstra Digital Media boss.

 

“The merger between FOXTEL and AUSTAR will create a pay TV company that will be able to provide innovative content for customers across Australia,” Rick Ellis, Group Managing Director Telstra said today.

The deal will enable “Telstra to expand its Foxtel on T-Box offering into some Austar areas over time, enabling regional Australians in those areas to enjoy the same high quality IPTV services as those who live in metropolitan areas.”

Telstra said it will provide further detail on its plans to expand the availability of FOXTEL on T-Box at a later date.

Until the transaction is completed Foxtel will continue to service to its customers and Austar will continue to service  its customer base.

Foxtel boss also insists the Austar deal does not substantially lessen competition in any market, saying “we are pleased that the ACCC has today accepted the undertakings which we have provided to expedite completion of the transaction.”

Sorry Apple: OZ Samsung 7.7″ Tab Likely After Ruling

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Apple have just lost the right to prevent Samsung selling new Tabs in Australia, meaning a new Galaxy could be just days away. In a Sydney court today, Apple were seeking to prevent its tablet rival from launching any new device, while it awaits the outcome of the current case involving the Galaxy Tab 10.1, which Apple argues is a clone if its flagship, iPad 2.
The sale of the Galaxy Tab 10.1 which was banned by Justice Amanda Bennett in court yesterday, after granting an interim injunction to Apple, meaning the device won’t go on sale at lest until the full trial hearing goes ahead, which is timetabled for November 1, Melbourne Cup day.

Apple were also dealt a second blow of being prevented from vetting any Samsung Tab 10 days before it is launched here in Australia.

Read Victory! Apple Win OZ Tab Battle, iPad 2 Reigns (For Now)

This ruling from Justice Amanda Bennett means Samsung Galaxy 7.7 inch Tab, announced earlier this year at IFA trade show in Berlin (although prevented from being shown due to Apple slapping a ban) could be winging its way Down Under soon.


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Samsung are likely to be desperate to fill the void in its tab line – due to the ban of its flagship ‘thinner and faster’ Tab 10.1, which was due for release here last month, until Apple began legal proceedings claiming several patent infingements.

Samsung have lodged a counter lawsuit against Cupertino, claiming  it has violated some of its wireless technology patents.

Lawyers for the iPad maker claimed Galaxy rivals could release the now banned Tab 10.1, under a different name.

“Samsung says Galaxy Tab 10.1, we say any tablet device” Apple lawyers argued.

“We know what may well come is another version of the tablet. It’s up to our friends as to how they name it, whether they call it the Galaxy Tab 10.1 or 10.2 or 10.1s or whatever it happens to be.”

Samsung’s counsel rejected the arguments and claim another tab launch would be separate to the current device under patent claims, arguing the granting of such an order would put it at an unfair disadvantage as a competitor of Apple.

“Your honour’s reasons dealt only with the 10.1 device … as a matter of principle your orders should only deal with the 10.1 device,” Samsung’s counsel said.

“Why should Samsung be put in a different position to any other trader in the marketplace, which is to give advanced warning so as to confer some process of effective pre-approval in the hands of its competitor,”

 

So, the Apple V Samsung tablet trial kicks off again next month, however, it is highly unlikely Australian consumers will see Galaxy Tab 10.1 this side of Christmas.

However, a replacement device now seems imminent.

Justice Bennett also offered to schedule hearings outside the Federal Court’s normal timetable today, possibly early next year in order to hurry up proceedings.

Read Samsung Revenues Set To Be Hit After Judge Rules

$5000+ Bill Shocks Rise

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A $5000 bill shock-er: there was a 70% jump in the numbers complaining about roaming charges in 2011-12

The number of mobile users slapped with international roaming bills of $5000 or more is increasing, according to Telecommunications Ombudsman TIO Talk publication.

There were 4100 such complaints in 2011-12 – and has doubled in the last 12 months to September 2012.

And although there has been a drop in roaming disputes in recent months, a greater proportion are disputing bills of $5,000 or more.

Consumers and telcos disputed over $8 million worth of mobile roaming bills in the last year.

“Some consumers who travel overseas for business or leisure are returning to telephone bills that are more expensive than the trips themselves,” Ombudsman Simon Cohen warned.

Here are some chief horror stories:

One consumer requested a special plan to make calls during a nine-week holiday to Europe, but instead was slapped with a whopper bill for $148,000.

Another was sent a bill for $38K while using the Internet on his phone aboard which he thought was connected to WiFi, while another had a $18,000 bill for international roaming.

We made 193, 702 complaints to the Ombudsman last year, in total, with poor coverage and lack of information given by telcos also top bug bears.

Read: $59 Plan: Biggest Bill Shock-er of All

Victoria got a right throttling with most new complaints per capita (1.83 per 1,000 people), followed by South Australia, New South Wales, ACT Queensland, Western Australia, while Tasmanians and  NT residents made the least.

The most complaints per capita were reported in Docklands in Melbourne and Sydney’s Parramatta.

Most complaints (57%) made to the TIO are about mobile services, although this dropped by 3% in July-September.

Coverage continues to be the biggest concern of mobile users, rising 4.2% in recent months and comes as Telstra 3G service in Melbourne experienced major issues.

Complaints about customer service, complaint handling and billing have reduced but the challenge will be to keep up this positive trend over the summer months, when demand is high, said TIO.

The continuing usage of smartphones and tablets is likely to increase international roaming usage, the report warns, and being fully informed about roaming charges before you travel is vital.

 

Here are tips for avoiding high global roaming charges (courtesty of TIO):

Before travelling overseas, we encourage consumers to contact their telco and make sure they are fully informed about all potential costs and charges of international roaming and other international telephone services.

 · Find out the costs of global roaming for voice and data services before using either service.

· Ask whether your telco has products designed specifically for roaming, such as data roaming packs, as these may reduce your overall costs.

· As when buying any product, ask questions to ensure you understand what you are agreeing to and the possible costs involved.

· Even if you have used global roaming previously, it is still important to contact your provider as the costs can vary significantly between countries.

· You can ask your telco to restrict your access to global roaming (if this was previously set up). Also find out how you can turn off global roaming and data settings on your phone.

· To avoid international call charges for incoming calls, you can set an unconditional call diversion to voicemail before leaving Australia. This means that all incoming calls divert directly to voicemail and will remain within the Australian network. Your provider will be able to explain the remote retrieval process and costs to you.

· If you incur a large roaming bill, you should contact your telco to discuss it and ask for more information about how it was incurred. If you believe the debt is not correct and you cannot resolve the issue with your provider, you can contact the TIO.

Planking, iPhone 5, Steve Jobs: 2011 Most Googled

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Aussies are looking for love. And Amy Winehouse, Adele, planking and an (as yet) unreleased iPhone 5. The video game Minecraft, the British Royal Wedding and the Rugby World Cup were also among the hot searches on Google this year.


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The third most popular search in Oz was, in fact, Google.

Love topped the ‘what is?’ list, suggesting we are a bit confused by the phenomena (or possibly just amused by the answer), along with planking, energy and depression also baffling us.

“We’re either a very romantic or a very jaded bunch,” declared Google spokesperson, Mr Johnny Luu, referring to political topics like the Arab Apring and Libyan uprisings (No .2) being surpassed by Apple’s iPhone 5 (No. 1) on the ‘most searched’ lists.

And of course, Australian’s are still “obsessed” by social networks Facebook and Twitter, says Luu.

“What the top overall search list shows is Australians are as obsessed with social networking as ever, with Facebook and YouTube being the top overall searches.”

Biggest Loser trainer Michelle Bridges was the only Aussie to make the top 10 fastest rising searches on people. 

Steve Jobs and British singer Amy Winehouse also were among the most searched for celeb deaths in the past year outdoing the demise of Osama Bin Laden by miles.

People often run to Google to check on a rumoured celeb death, with Jackie Chan and Hugh Hefner topping the list despite being still very much in the land of the living.

And with the soaring popularity of cooking shows like MasterChef, recipes for macaroons, red velvet cupcakes and pork belly most searched for foods of the 2011.

 

“The year-end Zeitgeist is a cultural barometer showing us what quickened our national heartbeat and drove our curiosity,” Luu added.

Byron Bay, Hamilton Island, Blue Mountains were among the top travel spots that Australians searched for this year.

It’s On: Google Internet Music To “Access All Areas”

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Listen Up iTunes, Spotify: Google music streaming will access all areas

And with millions of Android users – now miles ahead of rival iPhone (runs 60% of all smartphones globally) – it could be on the right track with Internet streaming service Google Play Music All Access

“This is radio without rules. It’s as ‘leanback’ as you want to, or as interactive as you want to,” used across any Android device, declared Chris Yerga, Google’s engineering director at Google 6th annual Google I/O developer conference kicks off in San Francisco, yesterday. 

Over 6,000 of Google faithfuls (developers) were in attendance as the tech giant unveiled a monthly music subscription service called Google Play Music All Access, new Maps and Chrome that speak to you. 

Internet streaming service Google Play Music All Access has millions of songs that joins its Play store and music locker, according to Google blog. 

But its not just iTunes, Spotify (priced at $6.99/$11.99), which has a massive market here in Australia that may also feel the pinch of Google streaming service that will be likely very soon on all Android hardware, smartphones, tablets and is hitting a “special” Samsung Galaxy S4 next month, which also comes with other Google updates. 
You can create a radio station from any song or artist, browse recommendations from Google music team or explore by genre. Google Play Music lets you combine your G Music with your own tunes in one single library. 
It’s $9.99 a month, and Google are letting doubters try it free for the first month. You can store 20,000 songs for free in the cloud. 
A “special” Samsung Galaxy S4″ hitting US on June 26, will have Google Play Music All Access preloaded, available with no contract for $649. 
Maps Redrawn 
Google has also redrawn its Maps service making it “smarter”, customising maps for every user and draws tailored maps that highlights only the road and landmarks you need. 

Search results are labelled directly on the map with brief place descriptions and icons that highlight local amenities (recommended by your Google+ friends, if you have any). 
“Like a friend drawing you a map to her favourite restaurant, with only the roads and landmarks you need to get there, the new Google Maps instantly changes to highlight information that matters most” writes Bernhard Seefeld, Google Maps Product Management Director & Yatin Chawathe, Google Maps Engineering Director, via blog. 

But Google Maps wants something back – your data. 

“The more you interact with the map, the better it gets. When you set your Home and Work locations, star favourite places, write reviews and share with friends, Google Maps will build more useful maps with recommendations for places you might enjoy” (Ooh, we scent privacy issues). 
It also now includes local business listings like restaurants, bars, information and ratings –  with help from Google Zagat ratings service.
 

Foxtel $46K Fine Dodgy “Sale” Ads

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Beware of the fine print: Pay TV giant forced to fork out $46,200 for “misleading” Christmas Sale ads.


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The offending ads promoted Foxtel’s “Christmas Sale” which claimed users could get a TV subscription for $55 a month on a six-month contract.

However, the Christmas Sale ads also contained a small asterisk with fine print terms and conditions beneath, which effectively locked customers into a year contract with the cost of the “deal” increasing to $77 per month after the 6 months – a $22 hike.

The ads which ran nationally in November to December last were believed to be “misleading” and “false” and contravened  Australian Consumer Law, according to the consumer watchdog, the ACCC.

Foxtel’s ad campaign, which ran on television, radio, newspaper and magazine, also online and in brochures, has now cost the TV giant $46,200 in infringement notice penalties paid to the Australian Competition and Consumer Commission.

ACCC chairman Rod Sims warned companies “the inclusion of an asterisk or a fine print disclaimer does not remove the potential for a headline to be misleading.”

“Companies must ensure that they do not use misleading headlines about the price and other key terms and conditions of the services being offered.

 

“It is not enough for a company to try to correct a misleading headline using fine print text,” Sims added.

The payment of an infringement notice penalty is not an admission of a contravention of the Australian Consumer Law, according the ACCC.