The tech company's step into the automotive industry is expected to bring in some challenges for the giant before the actual launch takes place in 2019.
Recent news suggests that the fact that Apple is working on an electric vehicle should not bother other giants in the EV industry as the software firm could be facing some serious problems and challenges before the launch that a lot of people might be overlooking. Even though the date that has been set for the release of the car is due in 2019, analysts are seen talking about how this does not seem to be an easy journey for the company to take. One thing that the software giant could be ignoring is the fact that because it has had a successful business in the tech industry, it does not guarantee a progressive business even in the automotive industry.
Since this is also the first step Apple business is taking into the auto industry, it could very well be a shaken one. The Californian Company has reportedly been one of the most high sales scoring giants in the industry but analysts believe that this does determine downright success in the auto business, as company like Porsche are also seen struggling with their yearly revenue, where reports discuss how the iPhone maker seems to be earning more than the famous car company, which is something to keep in mind as to how much the tech company can actually earn through the car business.
On the other hand, Apple software firm has also conveyed it to the press a couple of times that the company has a massive revenue generation that is sure to help it see through all the problems or losses that could be faced in the future. Analysts, who are looking at the current situation of the company from all angles, are not of the same opinion.
Even though the car producing business demands for more man power and more investments, it is believed to not give back in the same way. Reports have shown that the margin on profit that the auto companies receive is much lower than what the tech companies, especially Apple, is earning in the current situation which is being taken as a point that could disappoint investors in the long run. The software giant currently enjoys a colossal operating profit at around 28 percent which is a figure to be reckoned with, while on the other hand, Porsche earns around 16 percent profit which almost half of the value.
Analysts are also talking about how Apple tech company might be facing some challenges where the government rules and laws are concerned, as the giant has not faced strong regulations before, which every other auto maker has to face in the industry.
The software giant has been offered by Foxconn to take over Sharp, which might be considered by the company for its own benefit in the long run.
The most recent news about Apple is about how Foxconn has made an offer to the software giant regarding making a huge buy of Sharp, which has been struggling in the stock market for some time. According to a report by Nikkei business, it was seen that Foxconn has shown interest in taking over the popular LCD business but has come around to have little capital for it.
Therefore, through an offer made to the iPhone makers, the company is making an effort to take over the business with shared capital from the tech giant. Now analysts are talking about why the tech company would want to accept the deal in the first place, and the only reason that seems to make sense is that it also uses the LCD displaying for its own gadgets, which is why it might think about accepting the deal.
The LCD business that both Foxconn and Apple business could think about buying has been going through a tough time regarding the money for a long time. Analysts believe that the iPod maker has many reasons as to why they should help the company to get back in its place. If it did not, the tech giant will have to suffer in the long run, as then it would have to look for other companies and suppliers to get the best LCD possible for the gadgets.
In 2012, when Sharp began to struggle, there were many analysts in the market, which suggested the software giant to take over the business. The firm, however, did not oblige and went its own way by not investing in the business that provided it LCDs.
Analysts now believe that Apple software giant is not in a position to let Sharp fall completely and it is likely that it might end up signing the deal with Foxconn anyway. Taking a closer look at the whole prospective of the iPod makers buying the firm, analysts have come to the conclusion that if Sharp regains its position in the market, it is positively going to affect all the companies related to it, including Apple and Foxconn in a massive way.
As per the analysis of financial executives in the industry, it is being said that Apple stock might be in a good position to accept the deal. Even though all of its revenue generation is later on spent in international ventures, it is possible that the firm sees the potential in the deal that all the analysts seem to be discussing.
The software giant has decided to increase women and blacks in its workforce following the increased pressure from the public.
Apple Inc has been receiving pressure from the software industry for the purpose of hiring more females than it already was hiring and to maintain a balance between all classes and sexes so that equality can be observed. The Silicon Valley giant was one of those firms that were not carrying out this in the manner that was approved by the general public and was receiving criticism from the critics in the industry for a long period of time.However, the recent news discusses the efforts of the iPhone makers that are being made to bring a change in that by hiring more and more women in different departments and not just offer job positions to the males. Moreover, there has also been a complaint about how the Californian firm is also quite biased about hiring different people of different classes for job, giving more preference to the whites and Asians than to the blacks and Hispanics.Apple business team has released a report in which it states that the firm has been hiring quite a lot of women and also blacks, something that was not taking place previously. Analysts, on the other hand, believe that this did not have much of an effect on the total workforce that the firm has but it was still being taken as an improved effort by the company.One thing to be taken into consideration is that almost all the companies in the Silicon Valley have been observing inequality towards women which was not being taken well by the people of the industry. The pressure from the public has been increasing which is why Apple decided to do something about it. The Congress has also been ahead in the process of trying to make all such giants of the industry to change their hiring agenda.A report was recently released from Apple software in which it discussed how it is now working towards offering the same jobs to all the classes of people and will not focus on just the whites or males. This report has reportedly been similar to the ones released by huge firms like Google and Facebook that have been criticized for the same problem.Apple has reported in the release that around 35 percent increase has been recorded in the hiring of women in the company for the past year and around 24 percent black people were added to the workforce of firm which shows how much the Californian giant is working towards the addition of all classes of people in the company.
