Strategy in TECH...
This week we learned that Amazon has acquired Eero, a start-up company that offers a mesh WiFi system. Terms of the deal were not disclosed, but the company does reveal what drew them to the still small, but rapidly growing Eero.
In what is becoming a bit of a familiar refrain in tech these days, including our report just yesterday on Control4’s results, Sonos reported record results for their fiscal first quarter on Wednesday. The company beat analysts’ expectations for revenues ($496 million vs. $491M expected) and for earnings ($0.55/share versus $0.41 expected). And yet, their stock tanked fully 17% after the announcement. Not only that, but as of 11:00AM today, Sonos stock is down another more than 13%.
By most measures, Control4 had an excellent quarter and a record year in Fiscal 2018. Revenues and income were up for the quarter and the company noted that 2018 was another record year in financial performance with both revenues and profits increasing nicely.
But during an investor call, CEO Martin Plaehn warned that they are experiencing new headwinds that are slowing growth. And on the day after the fiscal results were announced, Control4’s stock got hit hard, dropping at one point more than 18% and closing down about 17%.
The headline caught my attention immediately – “Exclusive: Foxconn reconsidering plans to make LCD panels at Wisconsin plant.” This story, from the highly respected Reuters News Agency, follows a series of articles on Foxconn’s growing business struggles in the wake of a decline in sales to Apple. But it immediately raised a red flag with me…
Hon Hai Precision Industry Co., the Apple, Inc. primary supplier better know as Foxconn, has cut more than 50,000 jobs as the pain from the dramatic drop in iPhone sales is taking its toll on the company. Not only that, but the company has fallen short of hiring goals to which it previously committed to the State of Wisconsin – losing major tax credits for this year.
Worse yet, the outlook for the near future, doesn’t look to improve any time soon.
James Loudspeaker came out with multiple announcements this week that give a strong indication that the company is growing. Not only has the manufacturer of high-quality residential and commercial architectural and landscape products added a new President, but also a new Director of Marketing and even announced a new headquarters and production facility in Nevada.
TCL, a leading global TV brand out of China, launched several new A/V products at CES 2019, including new higher end 8K QLED¹ TVs with AI, a whole new range of headphone products, and new home theater soundbars. These products not only expand their assortment, they expand their market position with higher end solutions and advanced technologies.
We have followed Foxconn for years now, first picking up on them in 2012 when news had emerged that a significant Apple supplier was having problems with employees committing suicide – eventually forcing the company to install ‘suicide nets’ on their taller factories and offices to help thwart further suicide attempts. Foxconn has continued on to become one of Apple, Inc.’s largest iPhone supplier of parts and assembly.
CES 2019 is over the hump, closing tomorrow. But the top tech stories are pretty big and pretty clearly defined – and will be quite exciting, when they appear…someday. The top tech stories include – LG’s rollable, bendable OLED displays, Artificial Intelligence (AI), 5G – the next generation wireless tech, 8K TVs, autonomous vehicles – both car and motorcycle, and Apple & Siri strike back.
I had barely lit up the pixels with my post on Nortek’s holiday termination of their remaining independent sales representative groups, when I began hearing from a number of other sources about high-end specialty brand Bryston terminating their rep force as well. It’s like a New Year’s assault on sales representative groups…and they aren’t happy about it…
