Showing posts with label apple store. Show all posts
Showing posts with label apple store. Show all posts

Monday, December 18, 2017

Is The iPhone X Racist?

A woman in the eastern Chinese city of Nanjing has been offered a second refund after faulty facial recognition software on two iPhone X handsets allowed her colleague to unlock them.



As The South China Morning Post reports, the woman, identified only by her surname Yan, told the Jiangsu Broadcasting Corporation that despite activating and configuring each phone’s facial recognition software, her work colleague was able to get into both devices on every attempt.


Yan said the first time it happened, she called the Apple hotline, but the staff would not believe her.


Shen then went with her colleague to the nearest Apple store, where her colleague used facial recognition on the phone to demonstrate the issue to staff, according to the report.


The store said the camera might be faulty and gave Yan a refund. But the new iPhone X that she bought also had the same problem, prompting the shop to offer another refund, the report said.


No details were given about whether the woman decided to purchase a third iPhone X.


Apple did not respond immediately to a request for comment.


So the question is... does the iPhone X (or its operating system) think all young Chinese women look the same? ... and therefore, is it racist?









Sunday, November 19, 2017

Apple Diversity Chief Forced Out After Saying White Men Can Also Be "Diverse"

Silicon Valley"s disdain for its mostly white, mostly male tech workforce has reached absurd new heights.


The New York Post is reporting that, after just six months on the job, Apple Diversity Chief Denise Young Smith, who was named vice president of diversity and inclusion in May, has resigned her post after making a “controversial” comment last month during a summit in Bogota, Colombia.


What was Young’s crime? She insinuated that “diversity” can still exist among a group of white men because of their different life experiences.



“There can be 12 white, blue-eyed, blond men in a room and they’re going to be diverse too because they’re going to bring a different life experience and life perspective to the conversation,” the inaugural diversity chief said.


“Diversity is the human experience,” she said, according to Quartz. “I get a little bit frustrated when diversity or the term diversity is tagged to the people of color, or the women, or the LGBT."


That’s right: Young, who is – for the record – a black woman, has been forced out of Apple because her views on diversity were too inclusive.


As the Post pointed out, Young’s comments appeared to defend Apple’s overwhelmingly white and male leadership at a time when the company’s makeup is markedly uneven. This begs the question: What, exactly, was she defending them from?


Young, a 20-year Apple veteran who previously served as the company’s head of worldwide human resources (a senior level position), was later forced to apologize for her remarks, telling Apple staff that her comments “were not representative of how I think about diversity or how Apple sees it."


“For that, I’m sorry,” she said in an email. “More importantly, I want to assure you Apple’s view and our dedication to diversity has not changed."


“We deeply believe that diversity drives innovation,” an Apple spokesman told TechCrunch in a statement. “We’re thrilled to welcome an accomplished leader like Christie Smith to help us continue the progress we’ve made toward a more diverse workplace."


In 2017, only 3 percent of Apple’s leaders were black, and women held just 23 percent of tech jobs, according to Fortune. Female leadership stood at 29 percent, Apple said.


“Meaningful change takes time,” the company said in its diversity report. “We’re proud of our accomplishments, but we have much more work to do."


Smith will leave the company at the end of the year. Taking over as VP of inclusion and diversity will be Christie Smith, who spent 17 years as a principal at Deloitte.


She is also a white woman.
 









Friday, September 22, 2017

"This Is Embarrassing": 2 People Show Up For iPhone 8 Launch in China

Confirming reports that reception for Apple"s newly launched iPhone 8 may be "underwhelming" to put it lightly, as the phone provides little if any material improvement over its lower-priced predecessor even as sales for hardcore fans will be cannibalized by the iPhone X, is the following report from Hangzhou, China which shows that all of 2 people were waiting in line for the latest gizmo from Tim Cook.




As Chinese media reports, summarized by David Kersten, "note the barricades for the anticipated queue...



... that had to be put away because only 2 people showed up."



Some more details:





I"ve C&P"d this article, clumsily translated by Google, because, being from a Chinese site, it doesn"t adapt well to the Facebook environment, however, the link is provided as are the pictures.



"Embarrassing! IPhone 8 today, Hangzhou, security guards are busy removing the fence.





September 22, the Bank of China iPhone 8 officially opened in the major channels. Hangzhou Apple West Lake shop, more than six in the morning to thirty or forty security. Black fence posture full of a row of rows, turn a few 90 degrees bend. 8:00 to open the door, the door on the two line up. 8:43 security guards began to withdraw fence ...





According to Hong Kong media, and the mainland, Hong Kong, Apple shop customers have no more employees."





With the iPhone 8 a dud, at least in China, AAPL longs are hoping that the reception for the iPhone X in a few weeks will be notably more enthusiastic, or else Apple may have a major problem on its hands.

It's Not Just China: No Lines For New iPhone 8 Virtually Anywhere

Earlier we showed that in a striking lack of enthusiasm for Apple"s latest offering, the iPhone 8 which went on sale today, there were just two people in "line" in front of an Apple store in China: less than the security guards at the same location.



Unfortunately for Tim Cook, it appears that it was not just China as the entire world appears to have gotten collective cold feet when it comes to Apple"s newest gizmo,  because while Apple Stores are usually faced with shockingly long lines on the morning of a new iPhone launch, that wasn"t the case today. Anywhere.


As various reports have pointed out, some Apple Stores have very short lines out front for the iPhone 8, if they have anyone at all. According to Reuters, that there were fewer than 30 people at Apple’s Sydney store, which usually has hundreds out front. And it described a “less lively mood in Asia” than for previous launches.


In California, ABC7 reporter Chelsea Edwards posted a photo from outside of an Apple Store with no one in front of it.



Other photos showed short (or no) lines in Brisbane, London, Leicester, and Ottawa






According to CBS LA, the Pasadena store was also missing a line of eager fans.





Previous releases of the iPhone attracted hundreds of Apple fans waiting in the early morning hours at several stores across Southern California. The Apple Store has a ticketing system, but that never stopped eager iPhone fans from camping out overnight.



But on Friday morning, all was quiet on Colorado Boulevard, except for employees inside the store handing out tickets.




To be sure, some pockets of enthusiasm remained, such as at Apple’s location at the World Trade Center and on Fifth Avenue in New York which did have a line this morning, and there appeared to be a big turnout in Singapore.



As we commented earlier, and the Verge adds, there are reasons this launch might not be getting as much turnout. For one, this is the 10th generation of the iPhone, and hype has probably just died down. People are no longer lining up to buy their first or second smartphone, and this year’s model doesn’t have any revolutionary new features that people are willing to wait overnight for.


Furthermore, in November Apple is launching the next "revolutionary" iPhone — the iPhone X — not the iterative update that’s coming out today. It’s the same reason there wasn’t a rush for the iPhone SE, either.


More concerning is that there are signs that the iPhone X is cutting into iPhone 8 online orders, too. Speaking to BuzzFeed News, Angela Ahrendts, Apple’s retail leader, said “it’s kind of our fault” that lines are going away, because Apple gives customers a choice of where to buy their phone, online or in person. That’s been true for years, though. BuzzFeed also says it saw short lines in Toronto, London, and Los Angeles.


While it is too early to conclude if the sudden disappearance of customers is troubling for Apple"s future says, it is hardly the reception Tim Cook - who carefully cultivates the image of pent up demand by parading the lines of people greeting its every product launch - wanted. Still, more important will be what happens outside Apple stores on November 3rd, when the iPhone X comes out, although with concerns mounting about the public"s receptivity to the phone"s face-scanning technology which has already received scathing criticism among even pro-Apple outlets, some investors are unwilling to wait: AAPL stock is down over 1% today and is about to have its worst week since April 2016.


Wednesday, September 13, 2017

iPhone X So Expensive In India "You Can Fly To Hong Kong, Buy It, Come Back And Save Money"

One day after the most anticipated Apple product launch in 10 years, several problems have emerged for the much hyped iPhone X, face-recognition demo flop notwithstanding: it will be substantially delayed confirming all earlier reports of supply-chain bottlenecks, and it will be expensive, perhaps prohibitively so. The introductory prices of the iPhone 8 and the iPhone 8 Plus have gone up compared to the prices of the iPhone 7 and the iPhone 7 Plus. The iPhone X, meanwhile, will price in the 4 digits well equipped. Addressing this issue, the WSJ has a front page article titled "Apple’s New iPhones Gamble on Allure of Premium Pricing."


In one place that gamble may prove insurmountable. As India Today writes, when it goes on sale in India on November 3, the iPhone X will cost Rs 89,000 for the 64GB version. The top-end variant with 256GB is going to cost Rs 102,000. "In other words, this is one expensive phone, although you can say that the iPhone has always been expensive."


To demonstrate just how expensive, on a purchase price parity basis, the iPhone X will be in India, India Today writes that "the other thing that you can say about the iPhone X is that it is cheaper in some other places. As it always happens, the market where the iPhone X is going to be the cheapest is probably Hong Kong." 





In fact, the iPhone X is so expensive in India, and so cheap in Hong Kong, that you can go Hong Kong, buy the phone, and come back and yet save some money. And this includes the cost of flight ticket to Hong Kong. Just see the math."



iPhone X (256GB) in India: Rs 102,000



iPhone X (256GB) in Hong Kong: Hong Kong Dollar 9,888. This means using the current exchange rate, in Indian currency the price is Rs 80,999.



What does this mean? It is cheaper to go to Hong Kong and buy the iPhone X 256Gb variant there.



The iPhone X will be available from November 3. Now, if you book your flight to Hong Kong today, the cheapest flight in the first week of November that you can book from Indian will cost around Rs 20,000. If you book a flight from Kolkata, you can get a return ticket to Hong Kong for little over rs 17,000. From Bangalore it is around Rs 19,000. From Delhi, around Rs 20,000. From Mumbai it is a little more expensive.



Flight ticket: Air Asia Rs 17,800


iPhone X 256GB: 80,999
Some other expenses: Around Rs 2000 to Rs 3000
Total: Around Rs 1 lakh
Money saved: Around Rs 2000



The report"s conclusion:





Now, we know the whole thing sounds like a joke. And in a way it is. No one is going to go specifically to Hong Kong from India to buy the iPhone. Also, it works best with the 256GB variant. But it does show the ridiculousness of the iPhone prices. and particularly the iPhone X prices, in India. Is it because Apple can"t price the iPhone any cheaper? Is it because Apple wants big profit margins? Is it because of Indian government taxes? Is it because Apple wants to keep the iPhone prices high so that it continues to a status symbol in India? We don"t know. Only Apple can answer these questions, if it wishes to answer them.



For now Apple is ignoring these, and various other pressing questions - including the whole animated poop emoji. Overnight Doug Kass released the following assessment of why this time Apple may have gone too far:





Apple continues to deliver an expensive smartphone relative to its peers, with many features that are already available from its competition and most of which were anticipated, including face recognition, a full-screen interface and no home button.



The only exception to reality versus anticipation was the later-than-expected availability, which is toward the end of the year (orders will be accepted on Oct. 27 and deliveries are slated for Nov. 3). As a result, analysts could take 3 million to 4 million iPhones out of their December quarter projections and reduce full-year 2018 estimates by about $0.40 a share.



However, the new Apple phone will provide an animated poop emoji so you can talk crap to your friends.



The starting price for the 64GB model of the iPhone X is $999 and $1,149 for the 256GB model. The Apple smartphone continues to be a high-priced aspirational product accompanied by a remarkably effective marketing effort that is stretching its status symbol appeal. However, I see little incremental to the latest product offerings, leaving room for disappointment relative to optimistic expectations. (It is why I initiated an Apple put position yesterday morning and added to that position when the stock was up $2 early in the afternoon).



The expectations of an Apple replacement super-cycle accompanied by higher unit volumes and much higher average selling prices, leading to expectations of a "hockey stick" of earnings growth in the coming fiscal year coupled with a general confidence in sustainable growth from there, have spurred a rise of more than 50% in Apple"s one-year forward price/earnings multiple in the last 1 1/2 years.



I clearly have underestimated the strength of and the confidence in the Apple franchise over the last year. Recognition of this has led me to maintain more of a trading-oriented short position, whereas years ago I had more of an investment short position, which proved successful. Nevertheless, I continue to believe that these aggressive "going forward" expectations for Apple and the company"s current valuation remain too ambitious.



But the biggest threat facing the iPhone and perhaps the entire Apple business model, is if its products are no longer perceived as the pinnacle of "coolness." And while it is too early to conclude either way, following yesterday"s disappointing and badly leaked release, many appear to be taking aim at Apple not as the source of brilliant Steve Jobsian innovation and "hipness", but as the target of mockery, scorn and humor. Indeed, as one readers suggested, "The bloom may be coming off the rose.  Even folks in the twittersphere piling on.  In the past there was such a halo around apple, nobody would make fun of them.  Now it seems the opposite."


Iis the idol worship coming to an end? According to these widely publicized reactions to the iPhone release, the answer appears to be yes.

Tuesday, September 12, 2017

Watch Live: Apple Unveils Latest iPhone From Spaceship Campus

Update: This seemed to sum things up in Cupertino perfectly - Steve Wozniak is wandering around. He said he is excited to see the new iPhone features, especially the facial recognition. He likes the feature a lot on his Samsung phone.



1001ET BLACKBERRY ENTERPRISE UPDATED TO AAPL IOS 11 MOBILE OPER SYSTEM


The stock ran up excitedly into the event...


1007ET APPLE TURNS POSITIVE AS PRODUCT EVENT BEGINS


1019ET Apple Watch - *FOSSIL SHARES DIP AS APPLE CLAIMS TOP POSITION IN WATCHES


*  *  *


As we detailed earlier, anticipation is sky high as CEO Tim Cook prepares to unveil Apple"s latest iPhones (and "one more things") from The Steve Jobs Theater at the new Apple "spaceship" Campus.



As CNET reports, for the past eight months, we"ve watched a parade of flagship phone launches, from power players like Samsung with the Galaxy S8 to scrappy players like Motorola with its family of Moto phones. Premium phones with not-so-premium prices like the OnePlus 5 have also competed for our attention.


Meanwhile, rumors about the next iPhone kept trickling out thanks to leakers and established publications alike.


Apple is set to cut through all the noise with the official unveiling of at least one new iPhone (and maybe more), as well as the rumored release of updates to the Apple Watch and Apple TV. There"s also a chance we get more details on the forthcoming HomePod smart speaker.


Watch live here (if you"re on a Mac with Safari).


Live Feed (via CNET):



What are we expecting...


 A weekend leak of some unreleased iOS 11 code may have spoiled all the surprises Apple had in store for tech fiends at tomorrow’s big iPhone event, with John Gruber of Daring Fireball calling the leaker “the least-popular person in Cupertino.”





There is expected to be three new phones. Two will at least be modest upgrades to the iPhone 7, getting beefier chips and the like.



The phone people really care about -- in imagination, if not necessarily spending plans (yet) -- is the 10th anniversary version of the phone.



While Apple was typically quiet about its plans, by now the world has a pretty good sense of the feature set.



The phone is expected to be Apple’s first with an organic light-emitting diode, OLED, display, which will be larger at 5.8 inches, and sharper, than the previous LCD displays.



Hold on to your hats: Apple ditched the home button in the phone, which is expected to now be unlocked through facial-recognition technology.



The phone is also expected to offer wireless charging and 3D sensors that enhance the performance of coming augmented-reality apps.



What will the stock do?


UBS technology analyst Steven Milunovich says there’s a distinct pattern in how Apple’s stock price reacts to these product launches.





“Based on the last five iPhone announcements, the stock has a reasonably consistent pattern: down in the two weeks preceding the event; up/down 1-2% the day of the event; up between the event and launch (phone availability about two weeks later); weak in the two weeks post launch; and then up going into earnings,” he wrote in a note out Tuesday morning.


“We think there is somewhat greater near-term downside risk this time though we expect the stock to outperform over the next 6-12 months.”



Here"s how the stock has moved before, during, and after previous iPhone announcements, relative to the S&P 500:


Monday, September 11, 2017

Middle-Class Chinese Say A $1,000 iPhone Is "Too Expensive"

Apple Inc. had hoped that its iPhone eight might demolish the company’s sales records in China as the country’s burgeoning middle class embraced the phone, thanks in part to its name: Eight is considered a lucky number in Chinese culture, signifying wealth and fortune.


Unfortunately for the world’s most valuable company, this calculus isn’t playing out as well as its massive marketing operation had hoped for one simple reason: The price of the phone is simply too high for most members of the company"s target demographic.


However, Apple investors reacted positively to news Monday that the company"s iPhone 8 would be priced at $1,000 a unit. AAPL was up nearly 2% in early trade.



Two versions of the iPhone 8, along with a third premium model known as the iPhone X, will be officially unveiled at its product launch in Cupertino tomorrow. Details on price points of the new devices and their availability dates are still unknown, though even the cheapest of the latest top-of-the-line model is expected to cost about $1,000.


Unfortunately, the bulls could be a little short-sighted, especially considering that signs of slowing sales in some of Apple’s key growth markets have weighed on its share price in the past.


To wit, Reuters reporters spoke to regular Chinese citizens about the new iPhone – specifically, whether they intended to buy one. For Apple, their response was discouraging.


Here’s Reuters:





“Chinese shoppers, however, are already counting the cost, with the latest model tipped to have a price tag upward of $1,000 - roughly double the average Chinese monthly salary.



“I’ll wait for a drop in price, it’s too expensive,” said Angie Chen, 23, a project manager in Nanjing and iPhone 6 owner.



Chen said she might even wait for the new phone’s successor, when prices will fall. “It’s a nice number to hear, but there’s no rush.”



As Reuters points out, Greater China, which (according to Apple’s definition) includes Taiwan and Hong Kong, accounted for roughly 18 percent of iPhone sales in the quarter ended in July, making it the company’s third-largest market after the US and Europe. Meanwhile, the iPhone’s share of China’s smartphone shipments fell to 9% between January and June, down from 14% in 2015, according to data from Counterpoint Research.


Compounding the problem for the company is the fact that some analysts expect China to be a key driver of sales growth. Morgan Stanley analyst Katy Huberty told Bloomberg that she is watching for especially strong growth in China after the upgradeable, 2-year old iPhone base grew 56% this year, meaning more consumers are choosing to buy successive iPhone models.



Yet sales in China are down 10 percent from a year earlier, extending a nearly three-year series of declines. That contrasts with growth in all other regions. And although the Chinese currency has risen sharply against the dollar in 2017, a dramatic reversal of those gains could be imminent after Chinese authorities eliminated a requirement that sales desks set aside 20% of their revenues from sales of FX derivatives. The policy was intended to make it too costly to short the yuan, helping the PBOC fend of speculators as it sought to slow the currency’s depreciation against the dollar last year. But now, the central bank has ostensible switched off the “no” in the “no vacancy” sign at the yuan short-seller’s motel. And predictably, the yuan saw its largest drop in eight months overnight as the bears piled back in.



All of this means the phone will be more expensive for consumers, further suppressing sales as Chinese consumers stick with popular domestic brands like Xiaomi. But even with the company’s shares trading near all-time highs, despite reports of production problems that could limit supplies of the new models, whether or not another slowdown in China will actually impact the company’s shares remains to be seen.


* * *


In a preview of tomorrow"s product launch, several Apple analysts told Bloomberg what they felt would be the biggest reveals during CEO Tim Cook"s highly anticipated presentation. In terms of new features, while investors will certainly pay close attention to the iPhone"s hardware, the change that has the most significance with long-term implications is the addition of 3D-sensing capabilities that enable augmented reality applications, Gene Munster said.


While AR applications will be backward compatible to the 2015 iPhone 6S, the addition of designated 3D and computer vision hardware on the premium iPhone would be a “big step toward putting AR in the hands of everyday users” and a big step toward the “next generation of computing - beyond the smartphone," according to Munster via Bloomberg.


Performance of facial recognition on the OLED iPhone will be widely scrutinized, as the device probably won’t have a fingerprint sensor for login and Apple Pay usage, according to KeyBanc analyst Andy Hargreaves.


According to RBC analyst Amit Daryananianother, recent surveys suggest “sizable pent up demand” and excitement around the iPhone launch. With more of the hundreds of millions of iPhone users around the world expected to upgrade their devices this year, Daryananianother said the company could experience a "sales supercycle."

Sunday, September 10, 2017

New iPhones are not enough to keep Apple’s stock going, it needs a new category

It is hard to find a bigger Apple stock cheerleader than me. I’ve been writing Apple stock love poems for years. For a long time, it was easy to love the shares because they were unloved by others and it was cheap.


Until recently, when Apple stock was still trading in the low $100s and at single-digit multiples, we were buying current product categories at a discount and were not paying for future product categories.


At today’s price that is not the case anymore. That is true with any company – the more expensive the stock gets, the more clairvoyance investors need to discern the company’s future growth.


At Apple’s size it is very hard for the company to increase its earnings significantly. Macs, iPads, and even iPhones are mature products.


The iPhone may have a few growth spurts left, but not many. It is facing an unavoidable headwind: the elongation of its replacement cycle. The iPhone improved substantially over the years, but as the i-marvels piled up, the incremental improvements that motivated people to buy a new phone every two years or so became less and less significant.


At some point the iPhone will face the fate of the iPad – its replacement cycle long in the tooth and sales stagnant and declining.


Will the iPhone’s sales stop growing in 2018, or 2020? I don’t know, but from a long-term perspective of the company’s valuation, a few years don’t make that much difference.


(A new iPhone is expected to be unveiled next week. The stock fell slightly Wednesday on concern supply disruptions could cause shipping delays with the new phone.)


Services is the only segment that can grow at a double-digit rate for a considerable period of time, but it only represents 13 percent of revenue. Even the Apple Watch doesn’t really move the needle.


They need another genius



But can Apple come up with new product categories? Let’s ponder on this question in the context of the following quote:


“Talent hits a target no one else can hit; Genius hits a target no one else can see.” – Arthur Schopenhauer


Apple has a lot of talented people designing and redesigning products in the categories that Apple already dominates. They are hitting a lot of targets no else can hit. Apple’s brand is as healthy as ever, and so is product satisfaction.


However, to create a new category of products Apple needs to “hit targets no one else can see,” and this requires a genius. But in an organization of this size with a lot of bright and talented people, it also requires a benevolent dictator – someone able to make bold, unconventional decisions (and own them), someone who in addition to everything else is able to inspire others to create what they may think is impossible. Yes, I am referring to the one and only Steve Jobs, he of the “reality distortion field.”



Here is an instance that comes to mind: Jobs asked his engineers to come up with a touchscreen computer – a tablet. They did. It looked like a bulky version of today’s iPad. Steve looked at and said “Let’s put the tablet on ice,” then refocused the company on miniaturizing that tablet and making a phone instead.


It is important to remember that at the time, though Apple was financially healthy, it was not swimming in cash the way it does today. Jobs made a benevolent dictator-like decision: He diverted engineers who were working on the MacOS to work on what would become the iPhone OS, causing the late release of some Mac products. And only years later, after the iPhone was a raging success, Apple brought the iPad back to life. That was Jobs’ Apple.


Now let’s visit Tim Cook’s Apple. The New York Times ran an in-depth article unearthing why Apple has (so far) failed to come up with an electric self-driving car. These few sentences jumped out at me:


“But the car project ran into trouble, said the five people familiar with it, dogged by its size and by the lack of a clearly defined vision of what Apple wanted in a vehicle. Team members complained of shifting priorities and arbitrary or unrealistic deadlines.”


Nokia spent a lot on R&D too



Even Jobs admitted that Cook is not a “product man.” Cook doesn’t have “the vision,” and thus he doesn’t have the authority to be a benevolent dictator. Nor does he have the charisma to project and maintain a reality distortion field.


Today Apple spends almost $12 billion on R&D – double what it spent just a few years ago. But as outside observers, we really don’t know where this money is going. Or more importantly, how productively it is being spent. I vividly remember how Nokia was increasing its R&D spend every year during the last years of its dumb-phone dominance, but all that R&D did not bring forth new products that would have saved the company from its eventual demise. Apple is not facing Nokia-like collapse, but the R&D argument still stands: R&D spend doesn’t always equal great new products.


The NY Times article said that Apple curtailed its ambition to make a car and is now focusing solely on self-driving technology. In other words, Apple is basically pulling out of the electric car space (at least for now).


If Apple develops and licenses its self-driving technology, it will recover some of its losses on investments made to date. But it will not be able to take advantage of the significant competitive advantage that comes with its incredible brand, its distribution network – hundreds of stores (potential car dealerships) sprinkled all over the world – its know-how in battery management, its design prowess, and its i-ecosystem.


We still own a little bit of Apple stock but have sold most of what we owned at current prices. Maybe Apple’s augmented reality products will become a huge success, or maybe the company is working on a brand new category of products that we have not even imagined. It is all possible.


In making investment decisions you never have perfect information. Apple is no exception. At today’s valuation we are paying for genius – Apple’s ability to successfully create and dominate a new, large product category. While the company is run by very talented people who will do a great job getting us excited about the categories of products they are already in, the company’s genius died with Steve Jobs.


Read addition thoughts on Apple, here.


I am the CIO at Investment Management Associates, which is anything but your average investment firm. (Seriously, take a look.)



I wrote two books on investing, which were published by John Wiley & Sons and have been translated into eight languages. (Even in Polish!)



In a brief moment of senility, Forbes magazine called me “the new Benjamin Graham.” (They must have been impressed by the eloquence of the Polish translation.)



Smitten by this article? Don’t let your love remain unrequited. Sign up here to get my latest articles in your inbox.



Tuesday, August 15, 2017

Chain-Store Stock Carnage Continues (Despite Biggest Jump In Retail Sales Since 2016)

Oh the irony - as bulls celebrate the best jump in retail sales since 2016, the scene for retailer stocks is an utter bloodbath...


Earlier today, US Retail Sales in July rebounded dramatically to a 0.6% MoM gain - the most since Dec 2016 - driven a surge in motor vehicles (record incentives) and department stores (more inventives?). Year-over-year saw upward revisions and a rebound to a 4.2% rise in July.


The last two month"s declines in Retail Sales have been revised away magically and we have now gone 5 months without a decline...




But one glimpse at the carnage in chain-store stocks tells a very different story... Following a week of disappointing earnings from J.C. Penney Co. and Macy’s Inc., the drumbeat resumed Tuesday as results from Advance Auto Parts Inc., Coach Inc. and Dick’s Sporting Goods Inc. sent their shares crashing...




As Bloomberg notes, at this rate, the group is poised for the worst annual decline in share prices since the financial crisis.





“Everybody is being burned in retail and people are just questioning, ‘Is there any place that’s Amazon-free?’” Gary Bradshaw, a Dallas-based fund manager for Hodges Capital Management Inc., said by phone.



“There will be some winners in retail but boy, it’s just a land mine."



However, Vitaliy Katsenelson more accurately states It’s not just Amazon’s fault. Changing consumer habits are killing old retail biz...





Retail stocks have been annihilated recently, despite the economy eking out growth. The fundamentals of the retail business look horrible: Sales are stagnating and profitability is getting worse with every passing quarter.



Jeff Bezos and Amazon get most of the credit, but this credit is misplaced. Today, online sales represent only 8.5 percent of total retail sales. Amazon, at $80 billion in sales, accounts only for 1.5 percent of total U.S. retail sales, which at the end of 2016 were around $5.5 trillion. Though it is human nature to look for the simplest explanation, in truth, the confluence of a half-dozen unrelated developments is responsible for weak retail sales.



Our consumption needs and preferences have changed significantly. Ten years ago we spent a pittance on cellphones. Today Apple sells roughly $100 billion worth of i-goods in the U.S., and about two-thirds of those sales are iPhones.



Consumer income has not changed much since 2006, thus over the last 10 years $190 billion in consumer spending was diverted toward mobile phones. Between phones and their services, this is $340 billion that will not be spent on T-shirts and shoes.



But we are not done. The combination of mid-single-digit health-care inflation and the proliferation of high-deductible plans has increased consumer direct health-care costs and further chipped away at our discretionary dollars. Health-care spending in the U.S. is $3.3 trillion, and just 3 percent of that figure is almost $100 billion.



Then there are soft, hard-to-quantify factors. Millennials and millennial-want-to-be generations (speaking for myself here) don’t really care about clothes as much as we may have 10 years ago.



All this brings us to a hard and sad reality: The U.S. is over-retailed. We simply have too many stores. Americans have four or five times more square footage per capita than other developed countries. This bloated square footage was created for a different consumer, the one who in in the ’90s and ’00s was borrowing money against her house and spending it at her local shopping mall.



But the bottom line, as we noted previously, is that America"s malls, retail stores, and fast-food restaurants are hugely overbuilt.

Monday, June 19, 2017

The World's Top 100 Companies: Revenue Versus Profits

Just over a month ago, Visual Capitalist published a very tidy data visualization that summed up the top 50 companies in the world by revenue, based on data from Forbes.


But, as Jeff Desjardins notes, just looking at revenue numbers doesn’t give a full picture on how these companies compare – and many investors care much more about a different performance metric: profit.


Roday’s data visualization from Ishtyaq Habib shows the top 100 biggest companies by market value, but uses circles to represent both the revenue and profit for each company. There’s also an interactive version of the same chart here as well, which highlights the specific numbers for each company highlighted.






APPLE = A MONEY-MAKING MACHINE


The first noticeable difference in this version?


It’s that Apple is unparalleled in its ability to make money. In fact, Apple’s 2016 profit of $45 billion is far bigger than any other company, including Berkshire Hathaway ($24 billion), JPMorgan Chase ($24 billion), Wells Fargo ($22 billion), Alphabet ($19 billion), Samsung ($19 billion), Toyota ($17 billion), Johnson & Johnson ($16 billion), or Walmart ($14 billion).


The only companies that can compare with Apple were Chinese banks like ICBC, Agricultural Bank of China, or China Construction Bank, but in many ways these state-owned enterprises are on an entirely different playing field, anyways.


Also impressive: Apple’s profits are bigger than the revenues of massive companies like Coca-Cola ($41.5 billion) or Facebook ($27.6 billion).


MARGINS, SCHMARGINS


Unfortunately, not every company can make a 21% profit margin on $217 billion of revenue like Apple.


Other organizations need to rely on razor-thin margins and volume to make things work. Walmart only brought in $14 billion of profit off of a whopping $485 billion of revenue – a margin of just 2.8%. Meanwhile, fast-growing Amazon was in a similar boat with margins of 1.7%, largely provided by its wildly successful AWS service.


Lastly, it is also worth noting that some on the list did not make a margin at all. These are mostly companies that are suffering from the challenges of down cycles in natural resources. Chevron and mining giant Glencore, for example, were two of the Top 100 Companies that both lost money in 2016, while BP essentially broke even.

Sunday, April 23, 2017

"The Retail Bubble Has Now Burst": A Record 8,640 Stores Are Closing In 2017

        “Thousands of new doors opened and rents soared. This created a bubble, and like housing, that bubble has now burst.”


        - Richard Hayne, Urban Outfitters CEO, March 2017


The devastation in the US retail sector is accelerating in 2017, and in addition to the surging number of brick and mortar retail bankruptcies, it is perhaps nowhere more obvious than in the soaring number of store closures.


While the shuttering of retail stores has been a frequent topic on this website, most recently in the context of the next "big short", namely the ongoing deterioration in the mall REITs and associated Commercial Mortgage-Backed Securities and CDS, here is a stunning fact from Credit Suisse:"Barely a quarter into 2017, year-to-date retail store closings have already surpassed those of 2008."


According to the Swiss bank"s calculations, on a unit basis, approximately 2,880 store closings were announced YTD, more than twice as many closings as the 1,153 announced during the same period last year. Historically, roughly 60% of store closure announcements occur in the first five months of the year. By extrapolating the year-to-date announcements, CS estimates that there could be more than 8,640 store closings this year, which will be higher than the historical 2008 peak of approximately 6,200 store closings, which suggests that for brick-and-mortar stores stores the current transition period is far worse than the depth of the credit crisis depression.



As the WSJ calculates, at least 10 retailers, including Limited Stores, electronics chain hhgregg and sporting-goods chain Gander Mountain have filed for bankruptcy protection so far this year. That compares with nine retailers that declared bankruptcy, with at least $50 million liabilities, for all of 2016. On Friday, women’s apparel chain Bebe Stores said it would close its remaining 170 shops and sell only online, while teen retailer Rue21 Inc. announced plans to close about 400 of its 1,100 locations.


Broken down by retailer, either in bankruptcy or not yet:



Another striking fact: on a square footage basis, approximately 49 million square feet of retail space has closed YTD. Should this pace persist by the end of the year, total square footage reductions could reach 147M square feet, another all time high, and surpassing the historical peak of 115M in 2001.



There are several key drivers behind the avalanche of "liquidation" signs on store fronts.


The first is the glut of residual excess retail space. As the WSJ writes, the seeds of the industry’s current turmoil date back nearly three decades, when retailers, in the throes of a consumer-buying spree and flush with easy money, rushed to open new stores. The land grab wasn’t unlike the housing boom that was also under way at that time.


“Thousands of new doors opened and rents soared,” Richard Hayne, chief executive of Urban Outfitters Inc., told analysts last month. “This created a bubble, and like housing, that bubble has now burst.”


The excess retail space means that North America has a glut of retail outlets, as well as far too many shopping malls, something which is becoming apparent as sales per capita decline. On a per capita basis, the US has roughly 24 square feet of retail space per capita, more than twice the space of Australia and 5 times that of the UK.




The over-storing, including the influx of fast-fashion and off-price chains, has resulted in a brutally competitive landscape that made difficult for retailers to raise prices. “A pair of men’s dress pants costs less today than they did a decade ago,” Manny Chirico, chief executive of Calvin Klein and Tommy Hilfiger parent PVH Inc., said in a recent interview.


* * *


Then there are retail rental rates, which across top US markets, such as New York, remain the highest in the world. For years, retailers could afford the egregious demands by landlords. But as overall traffic and volumes have declined, this has also prompted an exodus of outlets even among the most desired locations, leading to a surge in "fors rent or lease" signs popping up in unexpected places like Madison Avenue"s "golden mile."




According to the FT, on New York’s Fifth Avenue, the world’s most expensive shopping street, vacancy rates have jumped from 10 per cent a year ago to 16 per cent, according to Cushman & Wakefield. Rents there have fallen for the first time since the recession “and the trend is not over”, the consultancy warns. Vacancy rates across SoHo have climbed to 18 per cent, from 12 per cent a year ago, according to Jones Lang LaSalle.





The newfound caution among retailers has had a “very significant and fast” negative impact on retail property, says Chris Conlon, chief executive of Acadia Realty, a real estate investment trust. 



It is not just prestigious streets that have been hit. Malls are also hurting, as chains from Sears to Macy’s shut hundreds of stores. Analysts at Green Street Advisors argue that “low growth is the new normal”, while market rents are becoming decoupled from tenants’ revenue growth as more sales move online. 



“[Rents] are at a price point now that exceeds what retail sales can perform,” says Spencer Levy, global head of research for CBRE. He notes that a stronger US dollar also hurts sales in New York, where deep-pocketed foreigners historically flock for deals.


* * *


Then there is the online migration, which recently made Jeff Bezos, owner of Amazon, the world"s second richest man.



As the WSJ adds, as retailers rushed to expand their physical footprint, the internet was gearing up to do to apparel companies what it had already done to booksellers: sap profits and eliminate what little pricing power these chains commanded.





Despite the view that shoppers prefer to try on clothing in physical stores, apparel and accessories are expected this year to overtake computers and consumer electronics as the largest e-commerce category as a percentage of total online sales, according to research firm eMarketer.



Helena Cawley, 37 years old, said she used to be a “die-hard” department-store shopper. But with two small children, the Manhattan entrepreneur doesn’t have time to visit physical stores the way she once did. “I buy much more online now,” she said. “With free returns and free shipping, it’s so easy.”



Ironically, that shift to online shopping has come at a high cost to retailers. It is less profitable to do business online than in a brick-and-mortar store, largely due to the higher shipping, customer-acquisition and technology costs of the digital world. Retail margins on average fell to 9% last year from 10.5% in 2012, according to consulting firm AlixPartners LP. Over that period, e-commerce sales increased to 15.5% of total sales from 10.5%. The internet has also made it easier for consumers to comparison shop, thereby erasing any pricing leverage retailers may have had. “The internet has acted as the great price equalizer,” said Joel Bines, the co-head of Alix’s retail practice.


* * *


Yet while the retail bubble may have burst, does that mean the conventional brick-and-mortar industry is doomed? Perhaps not:





Retailing has gone through shakeouts before, whether it was the superstores such as Wal-Mart Stores Inc., Target Corp. and Kmart that killed mom-and-pop shops, or category killers like Barnes & Noble Inc. and Toys “R” Us Inc. that did the same to smaller booksellers and toy chains. And even today, there are chains that continue to grow, such as off-price retailer TJX Co s., which is opening hundreds of stores under its Marshalls, T.J. Maxx and HomeGoods banners, as it steals market share from Macy’s Inc. and other traditional department stores.



“This is not the end of retailing as we know it,” Mr. Bines said. “People are not going to stop going to stores.”



He"s right, however in the meantime there will be an avalanche of defaults: compounding the retail decline is the debt that retailers have added to their balance sheets in recent years, either through leveraged buyouts or to fund share buybacks. That leverage has become a problem as profits dry up. According to Moody’s Investors Service, the amount of debt coming due for 19 distressed retailers is set to more than double over the next two years.





Many retailers were slow to seize on the significance of these changes. When business was bad during the 2015 holiday season, many chains blamed unusually warm weather. But when the most recent holiday season once again failed to produce robust sales growth, “retailers realized this was a structural change,” Credit Suisse analyst Christian Buss said.



With all that in mind, is Amazon assured of becoming the world"s first trillion-dollar stock, perhaps hitting the milestone even before Apple? Perhaps, then again, chains such as Wal-Mart have stepped up their game. In a bid to better compete with Amazon.com , the giant retailer has been scooping up e-commerce startups, including Jet.com and ModCloth. And just this past week, PetSmart Inc. bought Chewy.com, a fast-growing online rival.


Others have given up waiting for a recovery that seems always out of reach and are settling into what appears to be the new normal. “We’re planning as if the environment is not going to improve,” Jerry Storch, chief executive of Saks Fifth Avenue and Lord & Taylor parent Hudson’s Bay Co., told analysts earlier this month. In the meantime, expect more store closures, more bankruptcies (recall "According To Fitch These Eight Retailers Will File For Bankruptcy Next"), and, of course, far lower asset prices, both for retail equities and mall REITs, as well as the underlying CMBS securities that for years funded the US retail (and especially mall) bubble, which has now violently burst.


Wednesday, March 8, 2017

What The Hell Is Going On?

Via Jim Quinn of The Burning Platform blog,


“The older I grow, the more I distrust the familiar doctrine that age brings wisdom.” –  H.L. Mencken


 


“The older I get the less I listen to what people say and the more I look at what they do.”Andrew Carnegie


I’m 53 years old. The older I get the less sure I am about things I was sure about when I was 25 years old. I believed stocks for the long run was an unquestioned truth. I believed our economy was based on free market capitalism. I believed stock prices were based upon profits and cash flows. I believed a home was a place to live – not an investment. I believed the Catholic Church was run by good men doing good things. I believed journalists and the media were watchdogs working on behalf of the public. I believed our military was protecting our interests. I believed politicians legislated on behalf of the people. I believed the main purpose of bankers was to loan money to businesses and consumers in order to support economic growth. Boy, was I dumbass.


My skeptical nature, reliance on data I’ve personally vetted, and judging our leaders based on what they have done versus what they say, has allowed me to escape the Matrix. I wasn’t truly awakened until I watched Bush, Cheney, Powell, the rest of the neo-con prevaricators and fake news mainstream media utilize propaganda to railroad Americans into a $6 trillion unnecessary war, resulting in 36,000 American casualties, the destruction of a country and the creation of thousands of new Muslim terrorists.


I’ve spent the last fourteen years pushing back against the establishment narrative, documenting the fake data published by government apparatchiks, and trying to open the eyes of as many people as possible to the propaganda utilized by the Deep State to keep the ignorant masses dazed, confused and distracted. The country is in deep trouble because what the majority believe regarding the economy, politics, religion, and culture just ain’t so.


“What gets us into trouble is not what we don’t know. It’s what we know for sure that just ain’t so.”Mark Twain


Since the start of this year I’ve found myself in a mental funk. I’m tired of the lies. I’m tired of incessant media propaganda. I’m tired of politicians. I’m tired of economic experts. I’m tired of hucksters touting their “the end is near” tale to sell me something. I’m tired of faux mainstream media journalists and their whining about Trump being mean and threatening the First Amendment.


They don’t know jack about the First Amendment, as they work for one of the six media conglomerates whose job it is to produce fake news supporting whatever narrative keeps their Deep State benefactors in power. Regurgitating lines written for them by corporate propagandists is not journalism and has absolutely no relationship to the First Amendment. Over the last decade the only place to find some truth has been the alternative media thriving on the uncensored internet. That’s why the establishment wants to regulate the internet.


The fake news blitz by a Deep State, flailing about trying to retain their power and wealth, has reached frantic proportions. The left wingers, egged on by Obama and funded by Soros, hold increasingly inane protests with themes like: wear a vagina hat to support feminazis; hug an illegal immigrant; everyone I hate is a Nazi; and women take another day off and no one notices. The traitorous neo-con warmongers like McCain, Graham, and Kristol see their enormously profitable never ending global conflict agenda at risk. The military industrial complex needs enemies. The left wingers and neo-cons have joined forces to utilize the fake Russian election intervention propaganda in a last ditch desperate attempt to derail the Trump presidency before it starts.


The relentlessness, bitterness, and blatant disregard for the truth exhibited by Trump’s vast array of opponents have made TV virtually unwatchable. I’ve found myself mentally checking out. Why waste mental energy debating hacks, mental midgets and paid trolls for the establishment? After spending years obliterating fake government statistics on a daily basis, I find continuing to do so is just mental masturbation with no ultimate satisfaction. Confronting left wingers and neo-cons is like wresting with a pig, you both get dirty and the pig likes it.


I’ve always been an observer. I’ve been observing how certain both sides are regarding their positions on illegal immigration, Muslims, Russia, Obamacare, Supreme Court nominees, executive orders, jobs, taxes, climate change, school choice, oil pipelines the First Amendment, Second Amendment, the rule of law, and the Bill of Rights. I find it exhausting. We’re lost in a blizzard of lies. I’m not certain about anything. I will remain skeptical of everything uttered by all politicians, all government bureaucrats, all corporate executives, all central bankers, all media pundits, all religious leaders, all corporate paid journalists and especially Wall Street shysters.


“Moral certainty is always a sign of cultural inferiority. The more uncivilized the man, the surer he is that he knows precisely what is right and what is wrong. All human progress, even in morals, has been the work of men who have doubted the current moral values, not of men who have whooped them up and tried to enforce them. The truly civilized man is always skeptical and tolerant, in this field as in all others. His culture is based on “I am not too sure.”H.L. Mencken


The dissonance between what I have been observing and what is being flogged by the establishment mouthpieces in the corporate mainstream media has never been greater. Some of my observations are anecdotal, others are based on real unadulterated truthful data, a few are based on simple common sense and the rest are based on my understanding of what happens during Fourth Turnings.


When you understand the cyclical nature of history you are not surprised when events lead to reactions among the masses which take the linear thinking status quo by complete surprise. The 2008 global financial implosion and the subsequent election of Donald J. Trump by the deplorable white silent majority completely blindsided the oblivious establishment, but were entirely predictable if you had studied previous Fourth Turnings throughout history.


I’ve been making a horrific sixty mile round trip commute into Philly for the last ten years. The average daily commute has been about two hours, as the entire route has been under some sort of construction for the entire decade. A fantastic one way commute is forty five minutes. I regularly have ninety minute commutes, and I’ve experienced a few which breached the two hour mark. It became immediately evident to me something changed as this new year got under way. My morning and evening commute has been consistently in the forty-five minute range for the last two months. There are less cars and trucks on the road. The question is why?


This only happened once before over the last decade – during the 2008/2009 recession. In a shocking correlation (especially for brain dead tax and spend liberals), when there are less jobs, there are less drivers on the roads going to work. I tried to think of other reasonable explanations for why traffic appeared to be contracting so dramatically. But lo and behold, certain data can’t be easily manipulated by the government. Gasoline demand is plunging, with the year over year trend crashing to levels last experienced during the 2001 recession. Gasoline demand was higher during the 2008/2009 crisis. Demand was higher when oil was over $100 per barrel. Based on this crash in gasoline demand, Goldman Sachs issued a report saying we should be in a recession.



Total miles driven are dramatically slowing down. It’s not because of electric cars or fuel efficiency, as the vast majority of the 17.5 million vehicles being hawked to the math challenged driving public (using low payment leases and six year 0% loans) are pickups, SUVs, or luxury sedans. The Fed induced and subprime debt fueled frenzy of vehicle sales (aka long – term rentals) has seen vehicle sales skyrocket from 10 million in 2010 to an all-time high above 17.5 million in 2016, while auto loan debt has soared from $700 billion to over $1.1 trillion during this same time frame. The truthfulness of the 17.5 million sales number may be in question, as dealer lots are stuffed with record levels of inventory. With a record number of cars in the hands of consumers, how could gasoline usage and miles driven crash?


Vehicle Sales


More questions emerge to those with critical thinking skills. If the unemployment rate is really 4.8%, how could 40% of the employable population (102 million) not be working? This explains the lack of cars on the road during my commute. Obama and his minions jabber about the tremendous jobs recovery during his reign of error. In 2007 there were 122 million full-time workers among a working age population of 233 million, or 52.3%. After Obama’s eight year economic “recovery”, there are 125 million full-time workers among a working age population of 254 million, or 49.2%.


We’ve added 3 million full-time jobs in the last 9 years, and the captured mainstream media touts this as a success story. The deceitfulness – it burns. When 125 million full-time workers, of which 22 million are non-producing government drones, have to support 102 million non-working Americans, most living on the dole, you have a financially unsustainable paradigm. Trump’s slogan should be Make Americans Get Off Their Fat Asses and Work Again.


The explanation for the plunge in gasoline demand and miles driven is quite simple if you haven’t drunk the mainstream media kool-aid about the fantastic economy, low unemployment, and soaring consumer confidence. Americans drive their vehicles to work, to shop, and to eat out. Truckers are the backbone of our just in time big box retail society. If Americans are driving less, there are less people with jobs, less spending at bricks and mortar retailers, and fewer people eating out.


If truckers are logging less miles, retailers are ordering less inventory, manufacturers are selling less widgets, and the economy is contracting. The entire economic improvement narrative is based on soft data about feelings from consumer confidence surveys and dozens of other easily manipulated surveys. Propagandists are experts at convincing clueless dolts it’s raining when their government is actually pissing down their backs.


Despite government reports about expanding retail sales and strong holiday sales, real info from real retailers tells the true story. Major retailers have announced 1,500 store closings in the first two months of 2017, including:


  • JC Penney – 140 stores

  • Sears – 150 stores

  • Macy’s – 68 stores

  • HHGregg – 88 stores

  • The Limited – 250 stores

  • Abercrombie & Fitch – 60 stores

  • Wet Seal – 171 stores

  • CVS – 70 stores

Kohl’s, Target, Macy’s, Sears, and dozens of other retailers reported awful holiday sales. Wal-Mart was lauded for generating a 1% comparable store sales increase. There is virtually no store expansion by large retail chains. During the 2000 to 2007 period these chains were each opening hundreds of new stores per year. We are in the midst of a long term retail contraction which is just picking up steam.


The closure of these stores combined with rising interest rates are a toxic concoction for real estate mall developers. The Fed allowed them to extend and pretend for the last eight years. The jig is up. A wave of retail and mall bankruptcies is baked in the cake. The government reported retail sales growth is driven by Fed induced auto sales (leases and loans), home furnishing sales financed at 0% over five years, building materials stores offering 0% financing, Amazon and until recently restaurant and bar sales.


Since I don’t go into malls or many retail establishments, and rarely eat at chain restaurants, my observations of retail and restaurant traffic are based on how full their parking lots are at peak hours. When the economy was in bubble mode prior to 2008, mall parking lots were jammed and you had a ninety minute  wait to get a seat at Outback or Olive Garden. Today, you can get a parking spot at a big box retailer near the front door on a Saturday afternoon.


Malls are ghost towns, with Space Available as the hot new location. Except for peak dinner time on a Friday or Saturday (if then) there are no longer long waits to get a table at one of the struggling chain restaurants. We reached peak retail and peak overpriced restaurants a few years ago. The downward spiral, due to demographics, declining real income, and over-saturation, is irreversible.


Image result for restaurant performance index


As usual, with propaganda distributed by the government or industry organizations, they present a positive restaurant performance index based on false hope and delusional expectations. Restaurant chains like Applebees, Outback, Ruby Tuesday, Chilis, Buffalo Wild Wings and many other major chains have been reporting declining same restaurant sales. Industry comparable restaurant sales are lower than two years ago.


Outback’s parent company announced it will close more than four dozen locations of Outback Steakhouse, Bonefish Grill, Carrabba’s Italian Grill and Fleming’s Prime Steakhouse. Ruby Tuesday is closing 100 locations. Despite government reports showing strong restaurant sales over the last eight years, annual traffic to U.S. restaurants has been flat or up just 1% since 2009, when there was a 2% drop in the wake of the Fed created financial crisis.


The “increase” in sales was generated by price increases of 2% to 3% per year. Now these chains are paying the price for high prices, shitty food, and poor service from their college graduate millennial staff. With higher taxes, soaring Obamacare costs, student loan and auto loan debt up to their eyeballs, and low paying service jobs as their career, even clueless millennials have gotten a clue – they don’t have the money to eat out four times per week.


Anyone with an ounce of common sense knows the majority of Americans have fallen further behind since 2009, with only the establishment and those leaching off the establishment profiting from the suffering of senior citizens and the former middle class. When real personal spending plummets at the highest rate since 2009, you just might be in the midst of a recession.



As consumer confidence surveys, ISM surveys and Fed surveys provide fake news about consumer and corporate feelings about a glorious future, the hard data tells the truth. How could households feel confident when real median household income fell by $558 in December and is down by $529 year over year? How could Obama and his lapdogs in the mainstream media pontificate about the record economic recovery when real median income is 2% lower than it was nine years ago?


How can anyone deny the average American household has been experiencing a depression since 2000, when real median household income is lower today than it was at the turn of the century? Do you think the lack of income growth over the last 17 years may have played a part in the deplorables electing Trump in November?



The corporate fake news media will continue to produce the false narrative as directed by their Deep State employers. The credibility of journalists can be summed up in two pithy sentences by Hunter S. Thompson.


“The press is a gang of cruel faggots. Journalism is not a profession or a trade. It is a cheap catch-all for fuckoffs and misfits—a false doorway to the backside of life, a filthy piss-ridden little hole nailed off by the building inspector, but just deep enough for a wino to curl up from the sidewalk and masturbate like a chimp in a zoo-cage.” – Hunter S. Thompson – Fear and Loathing in Las Vegas


In Part Two of this article I’ll show how the Deep State/establishment/ruling class/status quo have utilized their mastery of propaganda techniques to convince the masses inflation and debt are beneficial to their interests and why Trump’s election is the pushback by a citizenry who are beginning to awake and are mad as hell.

Sunday, January 29, 2017

Tim Cook Blasts Trump Immigration Order: "It Is Not A Policy We Support"

First Google warned of the adverse side-effects from Trump"s executive order on immigration by telling its offshore employees to return to the US, and advising those currently in the country to refrain from traveling abroad.


Then, Microsoft CEO Satya Nadella, wrote in LinkedIn post that “as an immigrant and as a CEO, I’ve both experienced and seen the positive impact that immigration has on our company, for the country, and for the world. We will continue to advocate on this important topic.”


Finally, moments ago the big tech trifecta was completed when Apple CEO Tim Cook blasted President Donald Turmp"s executive orders on immigration policies Saturday, saying that immigration has been essential to Apple"s corporate climate.


“Apple would not exist without immigration, let alone thrive and innovate the way we do,” wrote Cook in an email to Apple staff, Recode reported. “I"ve heard from many of you who are deeply concerned about the executive order issued yesterday restricting immigration from seven Muslim-majority countries. I share your concerns. It is not a policy we support.” Cook also quoted Martin Luther King in the email to employees: “In the words of Dr. Martin Luther King, ‘We may have all come on different ships, but we are in the same boat now.’"


The statement comes after Apple CEO spent Thursday and Friday in D.C., meeting with senators, dining with the president’s daughter and son-in-law as well as Trump’s nominee to be Veterans Affairs secretary. 


The full text of Cook"s note is below:





Team,



In my conversations with officials here in Washington this week, I"ve made it clear that Apple believes deeply in the importance of immigration -- both to our company and to our nation"s future. Apple would not exist without immigration, let alone thrive and innovate the way we do.



I"ve heard from many of you who are deeply concerned about the executive order issued yesterday restricting immigration from seven Muslim-majority countries. I share your concerns. It is not a policy we support.



There are employees at Apple who are directly affected by yesterday"s immigration order. Our HR, Legal and Security teams are in contact with them, and Apple will do everything we can to support them.



We"re providing resources on AppleWeb for anyone with questions or concerns about immigration policies. And we have reached out to the White House to explain the negative effect on our coworkers and our company.



As I"ve said many times, diversity makes our team stronger. And if there"s one thing I know about the people at Apple, it"s the depth of our empathy and support for one another. It"s as important now as it"s ever been, and it will not weaken one bit. I know I can count on all of you to make sure everyone at Apple feels welcome, respected and valued.



Apple is open. Open to everyone, no matter where they come from, which language they speak, who they love or how they worship. Our employees represent the finest talent in the world, and our team hails from every corner of the globe.



In the words of Dr. Martin Luther King, "We may have all come on different ships, but we are in the same boat now."



Tim