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Monday, February 13, 2012

Apple’s big bite: Billions USD gains - No justice to its iPad2 users

 

Apple Craze hit not just Philippines but all around the World

Computer and software giant Apple took a huge bite of profits recorded at a staggering $13.1 billion for its first quarter ending Dec. 31, 2011 – far above analysts' predictions. Total sales registered at $46.3 billion, almost double the $26.7 billion posted for the same period a year ago, with huge holiday sales of the iPad and the iPhone 4S attributed to the consumer electronic firm's windfall. Despite initial negative reviews, consumers snapped up the iPhone 4S when it went on sale a week after founder Steve Job's death on Oct. 5 last year. Many of the iPhone 4S buyers reportedly switched from other platforms like Android and Blackberry, and a renewed surge in the Apple smartphones' popularity saw them selling like hotcakes with 37 million units sold for the October to December period alone.

No doubt Apple is awash with cash, accumulating an estimated $97.6 billion and leaving its rivals struggling to keep up. The company's market value has increased to over $437 billion, putting it at the top of the pile in Standard & Poor's 500 Index. According to Apple CEO Tim Cook, they couldn't manufacture iPhones fast enough. The way things look; the same could be said with the Mac and the iPad, the other stars of the company. More than 5.2 million Macs were sold in the quarter – up from 4.1 million for the same period last year. On the other hand, 15.4 million iPads were sold for the period from October to December – proving that it is the most popular tablet – cornering more than 60 percent of the market.

More and more people are certainly appreciating the iPad with its breathtaking applications that have surpassed expectations. Even kids find it the most exciting tool for getting information from the net, with apps that make learning even more engaging. As a matter of fact, the Dubai Ministry of Health recently developed an iPad app for cancer patients, allowing them to link up with a doctor any time of the day – definitely making it easier for homecare patients.

One of the industries that has benefitted from the iPad is publishing – with interactive features that make reading more engaging than ever. In the Philippines, PeopleAsia magazine's iPad app version has been a great success – and it will be even more so since the app is getting an upgrade after the successful People of the Year awards night at the Dusit Thani Manila .

Shame on Greeks

Grappling with a debt-laden economy, the Greek government has launched a "name and shame" campaign to force tax evaders to pay up. Over 4,000 people figured in a list – which reads like a "who's who" in Greek society – finally released by the government after keeping it under wraps for months following a change in privacy laws. Greece has some $77.5 billion or 60 billion Euros in unpaid taxes – equivalent to 25 percent of its economy, and the 4,000 or so tax evaders owe an estimated 15 billion euros, more than enough to cut the Greek government's huge budget deficit.

In the Philippines, the BIR has been going after tax cheats via its Run After Tax Evaders (RATE) program, with the focus now on professionals and other self-employed individuals like doctors, artists and lawyers. According to the BIR, they are raising tax collection targets from these self-employed individuals to over P222 billion. Finance Secretary Cesar Purisima told us the tax collections last year have been below expectations but they are confident that more Filipinos will now be more conscientious about paying the right taxes. He admits there are still collection inefficiencies, but efforts would be focused on going after tax evaders, smugglers and all those who are not paying the right taxes.

Apple – No Justice for Apple users

Many apple consumers are complaining for the shift of focus of apple instead of "service to the customers" shifting into money from consumers. Though apple posted high gains for their iPhone and iPad gadgets; many are losing loyalty to apple for the less of justice issue to their consumers.

A customer in the Philippines who bought apple's iPad2 3G + WIFI admitted that his insufficiency of information as a big mistake of buying Apple's iPad2 3G+ WIFI  as he was convince the logic that if there is 3G means there is communication mobility that includes call and text or SMS but not exist in the iPad2 3G+Wifi.

"I chose the highest specs of iPad2 3G+ WIFI a 64GB plus leather cover because I believe that I could work even outside the office as long as I am connected to the internet but so disgusting because of limited compatibility of Apples software to MS Office, plus I could not receive call and text with my micro SIM inserted in my iPad2 3G+WIFI slot" this is a big regret he said.

"Apple fanatics must have to think many times because apple product is a thrill that hangs you in everlasting regrets . Para bang isang taong inutil, meron naman sana, Kompleto pero Hindi ma pakinabangan, parang taong baog at impotent na walang silbi, maganda lang tingnan sa panlabas pero Hindi Magagamit. Sinayang ko pa ang Perak o, I spent more than $1 Thousand USD para sa gadget na to plus oras ko para mag pa palit ng SIM ko from regular SIM into a micro SIM para magagamit sa iPad2 ko per laking pagtataka ko di matatawagan kahit naka 3G ang iPad ko" He added.

Apple's shift from giving value to its user's satisfaction over fashion and money into purely business might have a pitfall ahead that could lost its customer's loyalty.

Philippines Tops As best Investment Site in Asia

JETRO Competitiveness Survey In Asia

The Philippines has emerged as the most competitive country among seven Asian economies as an investment destination and doing business whether in manufacturing or services sectors, the latest survey conducted by the Japan External Trade Organization (JETRO) revealed.

Trade and Industry Undersecretary Cristino L. Panlilio said that JETRO came out with this Philippine Competitiveness survey by comparing the Philippines with six other Asian countries wherein the Philippines bested China, Malaysia, Thailand, India, Vietnam, Indonesia and Myanmar in most categories. Competitiveness indicators included in the survey are financial costs, sufficient labor supply and reasonable salary (for manufacturing and non-manufacturing personnel).

The survey was conducted by JETRO on Japanese-affiliated Firms in Asia and Oceania for the period August-September 2011.

"We are the cheapest in almost all categories of doing business," Panlilio said.

The Philippines garnered favorable ratings in terms of competitiveness advantage on business environment in comparison to other Asian countries, the report said.

Based on the survey results, the Philippines has the cheapest rates when it comes to labor, rentals and land prices. The Philippines also has the least problem on the competency of its labor pool.

In terms of sufficiency of labor supply, the Philippines emerged to have the most plentiful number of workers and second to Malaysia when it comes to the availability of executives.

"In terms of employment retention, we have the best loyalty record. In terms of problems of workers competency, we have the least problem," Panlilio said. .

"The implication of this project is that even in Asia, we are now very competitive. In fact, we are the most competitive when it comes to those factors of business or investment decision making," Panlilio said.

Specifically, the JETRO survey showed that when it comes to problems on increasing financial costs in the Philippines, the country had the lowest percentage rating of 4.6 percent while China had 64.1 percent. Comparatively, ratings of Indonesia, Vietnam, India, Thailand and Malaysia ranged from 51.9 to 61.5 percent.

In terms of problems in shortage of land/offices, rising land prices/rental, the survey results showed this is not a major problem in the Philippines considering that the 5.8 percent rating is way far lower than the 32 percent rating of India, which is the highest. Ratings of Malaysia, Thailand, Indonesia and Vietnam ranged from 9.8 percent-18 percent for this particular indicator.

On problems in skyrockettng payroll costs, again the Philippines had the lowest rating of 18.2 percent with Vietnam having the highest 61.3 percent. Malaysia was second lowest with 27.5 percent while ratings of Indonesia, India and Thailand ranged from 40.8 to 48.1 percent.

On sufficiency of labor supply, the survey showed the Philippines had the lowest rating of 3.2 percent followed by India, 4.2 percent and Indonesia, 4.4 percent respectively, in terms of difficulty in recruiting general staff.

This particular rating means there is a large pool of general staff which MNCs can recruit or hire. Ratings of China, Thailand, Malaysia and Vietnam ranged from 28.6 percent to 36.7 percent with Vietnam having the highest rating when it comes to difficulty in recruiting general staff.

On the difficulty in recruiting executives, Malaysia had the lowest rating of 37.9 percent followed by the Philippines 39 percent. Myanmar had the highest rating of 64.3 percent while the ratings of Thailand, China, Indonesia, India and Vietnam ranged from 40 to 52.8 percent.

Another indicator is low rate of worker's employment retention with the following results: where

  • the Philippines had a rating of 30.6 %, the lowest among ratings of other Asian countries.
  • Vietnam had 48.7 percent rating so far the highest,
  • Thailand, China, India and Malaysia ranged from 33.6 % to 42.5 %.

The Philippines boasts of highly competent and English-proficient labor force. Thus the rating of 37.9 percent the lowest which means our country does not have a major problem when it comes to worker's competency compared to Thailand, Indonesia, Malaysia, India, China, Vietnam and Myanmar, with ratings from 40.9 percent to 56.3 percent with Myanmar having their highest percentage when it comes to problems on worker's competency.

For the manufacturing sector only, when it comes to difficulty in quality control Philippine ratings of 26.7 percent, the lowest so far among other Asian countries in the report, proved that manufacturing firms had minimal problems on quality control compared to India with the highest rating of 45.5 percent. Indonesia, Vietnam, Thailand, Malaysia and China with rating of 28.7 to 43.4 percent.

Reasonable salary, another competitiveness indicator, showed that the Philippines had 5.3 percent rating salary base-up rate for 2011-2012. Malaysia followed with 4.5 percent. Vietnam had the highest rating of 17.1 percent for said indicator while Thailand's rating was third from the lowest at 6 percent, followed by Indonesia, 9 percent; China, 11.4 percent and India,, 12.8 percent

For the annual salary (including bonuses, allowances, benefits like SSS, Pag-Ibig etc) of the manufacturing staff, the Philippines ranked third from the lowest giving an annual salary of $4,048.

The lowest was Vietnam with annual salary of $2,196 followed by Indonesia, $3,980. Annual salary ranges of India, Thailand, China and Malaysia were from $4,495 to $6,340 with Malaysia giving the highest annual salary for its manufacturing staff.

0n annual salary (including bonuses, allowances, SSS, etc) for manufacturing engineers, again, Vietnam's annual salary of $4,793 was the lowest, followed by the Philippines, $6,494.

Malaysia had the highest annual salary for manufacturing engineers at $16,092 while annual salaries of Indonesia, China, India, and Thailand ranged from $9,937 to $11,464.

On annual salary (including onuses, allowances, SSS, Etc) for mfg managers, still Vietnam's annual salary of $11,526 was the lowest annual salary of $5,199 again followed by Indonesia and the Philippines at $6,852 and $7,324, respectively. Malaysia had the highest annual salary for non-mfg staff at $14,554 while annual salaries of India, Thailand and China ranged from 10,088 to $12,334.

On annual salary (including bonuses, allowances, SSS, etc) for non-manufacturing manages, again Vietnam continued to be giving the lowest annual salary of $14,977 for non-mfg managers, followed by the Philippines and Indonesia at $19,187 and $23,068, respectively.

Consistent for annual salaries, all categories, Malaysia had the highest annual salary at $35,117 while annual salaries of India, Thailand and China ranged from $25,179 to $27,610.(Bernie Cahiles-Magkilat)

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