~ Android & OEMs ~

Is HTC suffering from the onslaught of cheap Android phones? Are Android OEMs having the same fate to that of PC OEMs? Yes for both the questions.

Two recent articles which highlight the problems HTC is facing - The Verge 

The Verge has learned that HTC's Chief Product Officer, Kouji Kodera, left the company last week. Kodera was responsible for HTC's overall product strategy, which makes the departure especially notable on the heels of the global launch of the make-or-break One.

It's not just Kodera. In the past three-odd months, HTC has lost a number of employees in rapid succession — most recently Jason Gordon, the company's vice president of global communications. Other fresh departures include global retail marketing manager Rebecca Rowland, director of digital marketing John Starkweather, and product strategy manager Eric Lin.

While Om Malik writes about how both, Apple & Samung have the upper hand in integrating Supply Chain in the manufacturing process.

Apple has used all the billions in the bank to lock up supplies for processors, memory chips, radios, displays and other such components at favorable prices. It has worked out long term manufacturing arrangements with the likes of Foxconn. It has its own retail outlets. While most of us try and focus on Apple’s hardware and software integration, we forget that it is software, hardware and supply chain integration that allows the company to sell 37.5 million phones in the most recent quarter. It allows the company to make phones that meet the needs of different carriers.

Samsung too is an integration beast. It owns memory chip plants. It makes its own processors. It makes displays and it owns the factories. It has the unique ability to churn out new products faster than anyone else in the consumer electronics business and thus overwhelm the market with dozens of models. Just look at the many flavors on its latest Samsung S4 device and you start to see that this is a game only for big boys.

Supply Chain Integration could be a very key factor for a Global player. However in India, which is one of the fastest growing smartphone market, has seen the rise of 2 companies - Karbon & Micromax - that offer low lost Android Smartphones. Micromax sources China for their production, like any other OEM to reduce production costs. The product features & functionality match that of Samsung. The exterior build quality looks same in both cases, PLASTICY. One can own a Micromax phone with S2 features for about 15000 INR which is 30% lesser compared to Samsung's device. The devices offered by Mircomax/Karbon might be cheap imitations of the South Korean giant, but they are selling like hot cakes in India.

If Samsung wants to retain it's growth & share in the Indian Android market then it needs to take cognizance of these companies & have a strategy. While Apple has always been late in introducing products in the Indian market. Micromax has outpaced & outsold both Apple & Samsung which is gearing up to touch the $1 Billion mark.

Additional reading: Pretty profitable parrots | First Mover or Fast Follower?

~ Oil, Nations & Corporations ~

Image courtesy: FIFP

Spent my Sunday evening watching the 4 part series - Secret of Seven Sisters, by Al Jazeera. The documentary showcases how the so called Seven Sisters came into existence to explore and control Black Gold across various continents under different political regimes. 

The pact by Seven Sisters which influences the foreign policies of various nations is not an eye-opener. When many of the recent wars are fought in the pretext of human rights, terrorism, WMDs, etc; but the main reason could be attributed for controlling the stake of oil reserves among - US, UK, France, Russia, China, the UN permanent members to the Security Council. 

The documentary highlights the following about the Oil Corporations:

• How the tribes in the Middle East were fooled by them for many years by paying meagre sum for oil extraction
• How Dictators, Kings, Political Leaders are influenced and used to keep their commercial interests going
• Many of the oppressing regimes have had blessing of the UNSC permanent members which favoured the Oil Corps
• French Oil Corps have a lot of stake in oil exploration in Africa
• They looted many of the African nations until each country began nationalizing their natural resources
• The money never really benefited the people of the land. Rather it helped the Oil Corps get rich & in turn compensated the Kings, Dictators, Political & Militant Leaders for their support
• The ecological habitats have been destroyed in some places by these Oil Corps
• Sanctions over Libya was removed once Gaddafi paid compensation for the Lockerbie bombing of about $2.7 billion. Seriously? Money cannot compensate the loss of people lives here. By paying money made out of oil sales, Gaddafi couldn't alter his karma. He eventually was lynched by his own people during the uprising.
• Saddam was as - friend, enemy, oppressor - over the years of his rule of Iraq by UNSC permanent members
• Even the most recent catastrophe in the Gulf-of-Mexico where BP has a lot to answer

As the now dead Libyan Minister said,"There are no friends or enemies. Everyone has their interests when it comes to dealing with Oil producing nations. It's a win-win situation for everyone".

People might be skeptical of the documentary made by Al Jazeera channel, which is based out of Qatar. I feel majority of the media is controlled these days. On the contrary the programme offers a lot of different views on how the new world order is rising up to take on the Seven Sisters in the 21st century.

India & China would be a major factor as they want to meet the growing needs  of energy for 2 billion people. Both the nations have been warming up to Iran for oil despite the US sanctions in place.

One of the reasons why I like Elon Musk's vision of alternative energy resources & expansion of human settlement beyond Earth.

H/T: Naveen, thanks for the sharing the documentary.

~ Manufacturing in the US is a mirage ~

I had few glimpses of #SOTU {State of the Union} address by Obama from my Twitter TL {Time Line}. Of the many things being said, one particular statement caught my attention 

Obama in #SOTU: "this year, Apple will start making Macs in America again." #JobsNow

— The White House (@whitehouse) February 13, 2013

There might be intent and zeal to get more manufacturing jobs back from China into the US. Absolutely nothing wrong with the idea. Financially, I do not think Apple will take this road to reduce its profits nor the sales.

Why this would remain a distant dream:

1. Apple products do not come cheap even in the US. They are priced commodities compared to the competitive products in the market. 
2. The current pricing model cannot be sustained if manufactured in the US.
3. If the prices go up, will consumers still buy Apple or look at other options? 
4. A company like Apple would never like to loose out revenue. Mr Jobs himself had made a statement that it would be nearly impossible to get the manufacturing of their products back to the US.

Google, Apple's asymmetric competitor, took the audience at annual Android event by surprise when they announced the Nexus Q, a streaming device which would be "Made in USA". 8 months after the hyped launch Google has already lost the plot with Nexus Q. They has killed it. What could be the reason?

Cost. Cost. Cost. 

Which consumer would like to pay $300 when you have options starting at $99 & above. That speaks a lot about what consumers really think. They are concerned about economy than "Made in USA". China has the grip over manufacturing sector. Even India has begun sourcing many consumer products from China these days. 

When Obama asked Jobs how to bring all the iPhone manufacturing jobs back to the United States. {via NYT}

“Those jobs are gone,” Jobs is said to have snapped back, like a professor to a student who hadn’t done his homework, “And they’re not coming back.” according to Forbes.

Unless Apple has a decent Wages-Cost ratio strategy up it's sleeve for their products that are manufactured in the US; till then it would remain a mirage for Obama & Apple.

I would like someone from the media to pose this question to Tim Cook at some point of time to know how Apples plans achieve this. Thought Obama was a thinker & who did his ground work before addressing. However, this time around makes me think that he is no better than any other politician who is seen making grand promises.

Charles Fishman has an article 'The Insourcing Boom' in the December issue of The Atlantic, which I would like to read. #Longread

Update:
The Atlantic has a good summary of reaction from various people here.

Image source: MrBrill

~ Copy like Chinese ~

I have seen fakes of iPod & iPhone 3S in Bangalore. All of them are made in China. We all have read about the famous fake Apple stores that were mushroomed across China. 

Fake Apple Stores: BBC | Guardian | The Atlantic 

Today I came across another piece of article which is the mother of all copies. The Chinese have ventured into copy Architecture. The funny thing is that the 'copy' might even be completed before the 'original'. The stakes are pretty high for the Architect Zaha Hadid & her team to complete the original before the fake steals all the limelight.

Original Galaxy SOHO

Wangjing SOHO minus one building 

Source: Spiegel 

Indian companies aren't far behind. If you haven't seen Micromax A110 Canvas yet then check it out. It looks very close to Samsung Galaxy S3. Samsung should be feeling the heat, because the price of A110 is Rs 10000/- ;)

I just read About Us on Micromax page, "Our Strategy focuses on innovating, designing and using the latest technologies to develop products at affordable prices." Not sure if these are guys are innovating in copying other products or creating a design remix out of the HTC + Samsung. 

How many companies do you know of in the current era who are actually ORIGINAL in their design process & build something new. I bet there are very few companies currently in that space. Isn't there joy in creating something original? I hope 2013 has some kind of competition from players in their  design approach than copying Apple or anyone else.