Success in my Habit

Monday, August 15, 2011

Why Apple just might be the first $1 trillion co

Could Apple be worth $1 trillion? It's conceivable. The $342 billion iPhone and iPad maker became -- if only briefly -- the most valuable company in the United States when it surpassedExxon Mobil on August 9.

Yet its sales have been surging 80 per cent a year, and profit faster. And Apple trades roughly in line with the growing US market -- and at less than half the price-to-earnings multiple it fetched in 2006, when revenue growth was much slower.

Apple now trades at about 11 times estimated earnings for the fiscal year ending September 2012. The S&P 500 index is valued at about 10 times next year's earnings. But Apple's sales growth is not far off 10 times faster than that of the average company. The gadget producer also sits on $76 billion of cash and investments.

To get at this dissonance another way, consider Apple's PEG ratio. This hints at the price of growth by dividing a company's PE ratio by its projected percentage earnings growth. A smaller figure suggests a company is cheaper. Apple's is 0.2.

That's low compared to growth darlings. Burrito purveyor Chipotle Mexican Grill, for instance, comes in at 2.1, and Salesforce.com at 13.2. Pandora and LinkedIn aren't even expected to make money.

Alternatively, put Apple on the same PE multiple it traded on in 2006, and it would be worth almost $900 billion. A premium for today's faster growth could get it to $1 trillion. Apple can't be so cheap just because Steve Jobs is in precarious health.

True, Apple already sells more per quarter than it did in all of fiscal 2007, and it takes more and more success to move the needle. Growth could easily slow. Yet the smartphone and tablet markets are young, the company's customers show remarkable fidelity, and areas such as television are ripe for new gadgets. Moreover, Apple's return on equity is almost twice what it was in 2006, suggesting it has pricing power.

Maybe investors simply can't fathom so large a company. A $1 trillion Apple would mean adding all of Microsoft, Google, Intel and Amazon -- and more -- to the firm's current market capitalization. Perhaps Apple is correctly priced, the market too expensive, and growth stocks grotesquely so. But something doesn't add up. In relative terms, Apple should be worth far more.

Apple's market capitalization was $341.5 billion in midday trading on August 9. Exxon Mobil had a value of $341.4 billion.

In the last quarter, the firm's sales grew 82 per cent and earnings increased 125 per cent from the same period a year ago

MSN India launches MSN She targeting women

MSN India has launched MSN She targeting women to provide a discussion platform for women-related issues. The website content includes stories about urban as well as rural women and it will cover stories of success, of inspiring women and those who do things differently.

The website includes a news section which features top news stories from around the world, from feminist reporters and bloggers and feature articles, videos, images and polls, etc. Another section is the 'Trailblazers' section, which talks about inspiring women, from all walks of life. The section on 'Stripped' focuses on social, political and economic issues that have affected women and their role in society. It covers crimes, cases of violence, discrimination and other highly debated and controversial issues like rape, abortion, property rights, human rights, etc. There is a discussion platform as well, titled 'She Speaks', which features polls, besides allowing women to share their experiences.

Zuckerberg‘s Facebook helps small town entrepreneurs fuel ambitions

Mona Sandhu, a lecturer turned costume jewellery designer, set up a jewellery store in her home city of Karnal, Haryana, in 2006. The five-year-old store was doing well, selling about 70 pieces a week, but the limited pool of customers was stifling for the ambitious businesswoman.

On a whim, Sandhu set up a profile on Facebook at the end of last year with photographs of some of her products. To her surprise, she bagged an order the same day from a customer in California. Ten months on, Sandhu, whose social media page has been liked by 17000 visitors, is busy planning exhibitions in the US and UK.

As business on social media gains rapid acceptance, small-town entrepreneurs are securing customers from across the world. Sandhu gets over 100 orders a week mostly from customers in the US, Canada and the UK. On an average, individual customers order 5-10 pieces at a time, while a wholesale order starts at 40. "I have international recognition which has helped increase sales by 20 times since the launch of the page," says Sandhu for whom the Facebook page is the sole link with her customers.

For scores of entrepreneurs like Sandhu living in non-metros and towns with tight marketing budgets and no experience of running a commercial enterprise, Facebook has emerged as a significant marketing and sales tool. In fact, many of them are using their Facebook page as a substitute for a proprietary website. It costs nothing to set up a page, profile or group and it provides space for displaying photographs to boot.

Bihar uses least power, Delhi the most

NEW DELHI: The union territory of Dadra and Nagar Haveli tops the list on per capita power consumption in the country at 11,863.64 kWh while Bihar is at the bottom with just 122.11 kWh usage, as per information available with the power ministry.

Among the states, Delhi tops the list with 1,651.26 kWh, and Gujarat follows with 1,615.24 kWh. Maharashtra, in comparison, is well below these states with 1,028.22 kWh, while Punjab with 1,526.86 kWh and Himachal Pradesh with 1,379.99 kWh fare better.

Globally, India ranks 14th in per capita power consumption with 778.71 kWh, which is three times lower than that of China that is one notch higher on the list with 2,471 kWh. The world average is 2,782 kWh.

The top 10 positions are accounted for by Canada (17,053 kWh), the US (13,647 kWh), Australia (11,174 kWh), Japan (8,072 kWh), France (7,703 kWh), Germany (7,148 kWh), South Korea (8,853 KWh), the UK (6,067 kWh), Russia (6,443 kWh) and Italy (5,656 kWh).

According to the power ministry, among union territories, after Dadra and Nagar Haveli, Daman and Diu comes next with 7,118.23 kWh, Puducherry accounts for 1,743.37 kWh, and Chandigarh consumes 1,340.00 kWh.

Edcucomp ties up with Kanchi mutt to set up 100 schools

CHENNAI: Educomp Solutions, a leading education company, today announced its joint venture with Sri Kanchi Kamakoti Peetam to set up a 100 schools across the country.

To be set up under the patronage of Kanchi Sankaracharya Jayendra Saraswathi, the schools will be known as Sri Kanchi Sankara Universal Academy, a company release said.

Kanchi Mutt was interested in providing affordable education and has already set up over 50 schools, 10 colleges and a deemed university over the years.

This tie-up is a result of the common vision of both partners to aid capacity building in school education space and provide affordable value-based education to the masses. Under this tie-up, around 100 schools will come up across the country in the next few years.

The mutt would provide the land and philosophical learnings while Educomp will set-up and manage the schools.

Netxcell to grab a slice of mobile market in Africa

KOLKATA: Netxcell Ltd, the Hyderabadbased telecoms applications service provider, is set to ink deals with MTN, France Telecomcontrolled Orange Africa and Vodafone's Africa arm Vodacom to grab a slice of the $300-million mobile value-added service market in Africa. It is in advanced talks with the firms to deliver services on both 2G and 3G networks, including customer lifecycle management solutions on the pre-paid and post-paid platforms.

Netxcell operates in Africa through its Mauritius-based subsidiary Netxcell Mauritius (NML). Over the next six months, NML will launch operations in Nigeria, Ghana, Zambia, Ghana, Mozambique and Angola, a top company executive with direct knowledge of the matter told ET. The company is present in Kenya, Rwanda, Burundi, Tanzania, Sudan and Uganda. Netxcell Mauritius is a 51:49 JV between Netxcell and Kenya's Aqua-SanTec Group that was established a year ago.

Parent Netxcell is the telecoms software arm of Hyderabad-based Prathima Group that has interests in technology, healthcare, medical education, construction, engineering and entertainment. "We plan to deliver the full spectrum of mobile VAS solutions to MTN, France Telecom-controlled Orange Africa and Vodacom. Since 3G has already gained traction in key Africa markets unlike in India, a lot of our applications will be tailormade for 3G networks," Netxcell CEO Debasish Chatterji said.

He said the company would shortly conduct field trials of its video outbound dialing (VOBD) software in 3G networks across Africa. Among a host of mobile VAS solutions, the company plan to commercialise its video outbound dialing software that can be used by a telco for video advertising to 3G users and promoting products and services. The software application is delivered, typically, through video calls that are increasingly becoming popular in Africa. At present, there are some 510 million mobile subscribers in Africa,


the likes of MTN, Vodacom, Bharti Airtel, Orange, Orascom and Maroc Telecom collectively control 65% of cellular turf. While telecom penetration levels in the southern and northern Africa markets is close to 88% and 76%, respectively, mobile teledensity levels in eastern and central African markets remains a paltry 27%.

Small wonder, Netxcell's target markets will be those in eastern and central Africa. "We believe there are serious opportunities in the eastern and central African bloc where telecom penetration is low. NML has recently launched sales and marketing offices in Nairobi, Kampala, Dare Salam, Kigali to address market opportunities in Kenya, Rwanda, Burundi, Tanzania and Uganda where MTN, Orange and Vodacom are present.

In the second stage, we are looking to expand into Nigeria, Ghana, Gabon, Zambia and Angola. We plan to also develop a full-fledged mobile VAS ecosystem in select African markets by partnering with local content developers and integrators," said Chatterji. But he concedes that grabbing market share in the mobile VAS space will be no cakewalk for Netxcell, especially since rival Indian companies like Conviva, IMI Mobile and Spice Digital are already active in Africa.

Honda Motor bets on 100-cc bikes for rural push in India

NEW DELHI | MUMBAI: Japan's Honda Motor, the world's largest motorcycle maker, is betting on the small capacity 100-cc economy bikes as it embarks upon a rural push in the world's second biggest two-wheeler market, said people with knowledge of the development. The Tokyo-based firm, which separated from its long-term Indian partner turned competitor Hero MotoCorp, has appointed five management teams across India led by Japanese executives to create a new decentralised marketing structure for consistent sales, people from the industry told ET.

The Japanese two-wheeler maker is working on a new version of the CD platform in the 100-cc segment, where Hero's CD Dawn and CD Deluxe have the highest sales. Honda's new bike based on the 100-cc technology is targeted at India's vast rural hinterland that contributes almost half of the volumes to the nearly 5 million bikes Hero sells every year. The thrust on rural market is a reversal of sales strategy for Honda, which has so far been garnering most of its sales from cities and big towns.

"The company is currently focusing and tweaking bikes relevant for the Indian market to get closer to the customer ," said Abdul Majeed, auto practice leader, PwC. The 100-cc bikes laid foundation for Hero MotoCorp, erstwhile Hero Honda , to emerge as world's largest twowheeler firm in terms of volumes. Last year, Honda sold its 26% stake in Hero Honda to India's Munjal family while the technology agreement between Hero and Honda permits the former to use the joint name in products till 2014.

Honda, which owns the CD brand globally jointly with Hero, is likely to bring in a new improved engine with fresh design cues to attract young and rural India. Hero's claim on the CD brand exists only till 2014, by when Honda wants to emerge as a major player in the Indian circuit. Honda Motor did not reply to an email query from ET about its rural thrust and new marketing strategy. However, the company said it aims to emerge as a major player in India in the next few years as it comes up with strategies to consolidate.

Friday, August 12, 2011

North Chennai Thermal Power Station stage I, II to be ready soon

Chennai: The North Chennai Thermal Power Station stage I and II will be commissioned by January and March 2012 to give Tamil Nadu an additional power of 1,200 MW (2 X 600), according to Mr Natham R. Viswanathan, Tamil Nadu Minister for Electricity.

“We are on schedule, and the project will help improve the power situation in the State,” he told newspersons after reviewing the North Chennai Thermal Power project (and the NTECL project of a joint venture of NTPC and TNEB).

The Minister also reviewed the coal handling facilities at Ennore port in catering to the transport of coal for the additional 3,300 MW Tangedco projects being commissioned in 2012.

The Minister said “We are speeding up all ongoing projects and taking measures to reduce power demand and increase the supply to provide un-interrupted reliable power supply to all consumers in the State by August 2012,” he said.

Apart from the share from the proposed capacity addition through central sector, the project wing of Tangedco is expediting in commissioning of five coal-based thermal power projects under the State sector and joint venture with NTPC before the end of Eleventh Plan Period itself (December 2011 to March 2012), he said.

Currently, the required coal from various mines for the existing power stations such as EPS – 450 MW, NCTPS stage I (630 mw) and MTPS stage I and II (840 MW) is being handled at Ennore port. Further, the coal required for the forthcoming projects is also proposed to be handled at the port.

TCS and SMU sign an agreement to set up iCity Lab at SMU

New Delhi: Tata Consultancy Services (TCS), a leading information technology (IT) services, business solutions and consulting firm, and Singapore Management University (SMU) have announced the establishment of the TCS-SMU iCity Lab. The lab would be located at SMU. Initially, TCS will directly invest S$ 6 million (US$ 4.94 million) in the intelligent city - iCity - Lab over the next three years. The iCity Lab will be located within SMU’s School of Information Systems (SIS), and will draw on faculty from SIS and from the other parts of SMU.

The collaboration agreement states that both the organisations are partnering to form a new research facility to develop industry standards and IT frameworks for the emerging iCity model of urban development. The investment would also include providing scholarship funds for SMU post-graduate students in Information Systems Technology & Management, and research funds for SMU faculty.

The iCity Lab will be a digitally interactive center where city managers and planners from the urban areas of surrounding countries can come to visualise and interactively explore scenarios for transitioning to the new generation of cloud-based information service delivery. The lab will also assist the Government and commercial organisations through the rapid development and proto-typing of iCity solutions in the context of real-world scenarios.

The iCity Lab will leverage TCS’ existing suite of urban IT applications, as well as its large global organisation and partner ecosystem. The lab will also carry out R&D and solution development in the areas of cloud platforms and software solutions, mobile applications, business analytics combined with consumer, citizen and social analytics, the Internet-of-Things, and also in the areas of business models for developing, scaling and operating cloud-based iCity solution platforms.

Strategically located in Singapore, the TCS-SMU iCity Lab is well positioned to be a regional hub for the development of intelligent city IT architecture and solutions. The Lab will work along with selected partnering cities in China, India and other rapidly developing ASEAN countries to create urban management solutions. The outputs of the joint TCS-SMU effort will be to create holistic solutions and transition frameworks, service related process models, and working prototypes of new cloud-based IT service delivery solutions for delivering city services for health-care, education, utilities, environmental management, transport, public safety and security, together with related G2C & G2B, and citizen social media services.

“This industry-university partnership is a first of its kind in Asia-Pacific for integrating cloud technology with the relevant business know-how to create urban management IT solutions,” according to Professor Steven Miller, Dean, School of Information Systems, SMU.

“TCS’ investment in this joint initiative with SMU strengthens our commitment to Singapore, which we see as a hub of innovation in in Asia”, added Girija Pande, Chairman, TCS (Asia-Pacific). “Tomorrow’s cities will be specifically designed and built with a sophisticated IT backbone to enable integrated urban management, improved quality of life for citizens, and inclusive economic, social and sustainable growth. The TCS-SMU iCity Lab is particularly relevant for fast growing economies like China, India and others in the region. Globally over US$ 100 billion is expected to be invested in the intelligent city segment over the next 10 years,” added Pande.

The partnership combines TCS’ industry leading IT services expertise and culture of innovation with SMU’s worldwide recognised focus on research and education and for the world of business and management across both the public and private sectors.

Google Plus Games arrive to challenge Facebook

Here come the Google Plus games. Google has announced a big move toward mainstream adoption today, integrating Web-based games within the brand new social network. 'We want to make playing games online just as fun, and just as meaningful, as playing in real life,' the announcement says. Titles include Angry Birds, Bejeweled Blitz, Zynga Poker and Sudoku. Google has launched a new Google Plus Platform Blog to help encourage more.
Google seems a bit concerned about the distraction factor, though, and it wants to make sure these games don't get in the way of your +1ing, sharing and other important Google Plus business. 'Games in Google Plus are there when you want them and gone when you don't,' the announcement says. 'If you're not interested in games, it's easy to ignore them.'

Tech News - Telecom sector to create 1 cr jobs, says PWC | Techgig

Tech News - Telecom sector to create 1 cr jobs, says PWC | Techgig

Google Chrome Beta Now Supports C/C++

Google has been working on Native Client (aka NaCl), an SDK that brings C/C++ functionality to browsers since at least last year, and now the latest Google Chrome beta version includes NaCl. NaCl uses an API called 'Pepper' that provides HTML5 bindings for C or C++ . (NaCl is the molecular formula for salt. Salt and pepper. Get it?)
Google has also promised to make NaCl available as a plugin for other browsers. What this means is that cloud-based applications may be able to execute code at a desktop level of sophistication, and that Google Chrome OS will soon be able to run these types of applications as well. It's further blurring of the lines between Web/cloud and desktop applications.
According to Google's announcement:
Native Client allows C and C++ code to be seamlessly executed inside the browser with security restrictions similar to JavaScript. Native Client apps use Pepper, a set of interfaces that provide C and C++ bindings to the capabilities of HTML5. As a result, developers can now leverage their native code libraries and expertise to deliver portable, high performance web apps.
Google also announced the Web Audio API, which brings advanced audio capabilities to JavaScript. This will further break down the barrier between what it is and isn't possible for browser based applications to do.
Google first previewed NaCl for Chromium in May of 2010.