Posts in category Commodities
The online travel market may further on, in contrast to online tickets, be the market having the least competition but also the quickest expansion rate. Booking holidays over the web has sustaining annual expansions. The quantity of bookings through online travel agencies in the EU improved by nearly 20% within the last two years. As an example, for more pricey journeys, buyers in Germany kept on favoring travel agencies, while using online booking for trips with lower price tags, whereas in the UK a much greater share of buyers arranged their vacations rather online, over 50% of them completely refraining from classic vacation agencies. This has caused the off-line sales revenue to diminish, while online revenue in this market has significantly increased. In 2011 the revenue produced by online travel bookings expanded more than the entire B2C e-commerce earnings in France alone. Another huge tendency is the appearance of multi-device research by buyers. According to a VFM Leonardo whitepaper the use of mobile devices has greatly increased, while many businesses have managed to effectively hook up with Internet shoppers, raising market shares by investing intensively. Using mobile apps for vacation research and reservations with touchscreen phones and tablets is spotlighted by many web firms in recent time. The significant expansion of the Web travel business is also pushed by the strong increase of worldwide traveling. This trend is expected to continue for years to come. Priceline.com (Nasdaq: PCLN) reacts by making use of the available expansion options in Asian countries plus Latin America. People planning their holidays over the net are willing to pay considerably more and are better informed than ever. In the year 2012, in America alone, they spent a whopping $226 billion dollars online. Based on estimates by Forrester Research a further rise to $327 billion dollars is expected until 2016. Analysts expect the increased ease and comfort using online shopping systems, combined with wider internet store shopping capacities with mobile and tablet systems, to fuel this ongoing increase for many years to come.
Investors are concerned as they don’t see the same hype as iPhone5 building around an iPhone6 which might be launched in the fall of CY13. This has led investors to ask-“What next?” We continue to believe that Apple (NASDAQ:AAPL) will have considerable value going forward also. Apple being the innovative giant it is, we won’t be surprised if it launches yet another chain of products as it has done with introducing the first mac, the first iPod, the first iPhone and the first tablet (Maybe Apple is researching iAppliance in some secret lab!). As we can’t know what is going inside the headquarters of Apple right now, we will be talking about the strategies that could help Apple deliver in the future after the launch of iPhone5. To begin with, we expect that Apple will be providing iPhone 4S, its recently outdated model at a much lower price in the developing markets after the launch of iPhone5. We have seen this in the past as Apple has provided its 3GS 8GB phone at $375 and we expect to see it in the future but at a much lesser price point. We believe that this kind of offering would accelerate Apple’s share gain in the emerging markets and consequently increase investor confidence in the sustainably of Apple’s overall growth. While offering outdated models at lowered price might result in a downside to the ASP’s for Apple, we believe that Apple would ultimately benefit through the volume growth in the price sensitive developing markets such as China. We also believe that a low cost iPhone would provide Apple with an opportunity to fight with low-price smartphone manufacturers like Samsung, Nokia (NASDAQ:NOK) and HTC in the developing markets. With Apple already having a majority stake in US (Around 50%), this move could position Apple to increase its standing in the emerging markets also. Furthermore, we continue to believe that Apple will announce a smaller 7-8? iPad along with the iPhone 5 later this year. We continue to see significant growth implications for Apple with this launch. While we believe that the financial implications for Apple will be minimal as Apple might have to enter at a lower price, the strategic implications far outweigh the financial ones. We believe that the major portion of the tablet market that Apple doesn’t own is currently made up of 7? tablets. Thus, if Apple can capture 50% of the 7? tablet market, which should be achievable given Apple performance and past track records, the company would further strengthen its utter dominance in the growing tablet sector. We believe that Apple with its entry into the lower price segment is trying to maintain its leadership position in the tablet market and prevent competitors like Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) from increasing their market share. We believe that this move might also increase up-sell opportunities for Apple as Apple products have shown higher level of stickiness with users with intent to repurchase in the past. While there are rumours in the [...]