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Updated: 9 years 3 weeks ago

Apple Inc will hit $1.1-trillion market cap and watch will be its best-selling product every, says analyst

Apple Inc reported another quarter of monster earnings after the market close Monday, with quarterly profit up by 33 per cent on the back of strong iPhone sales in the U.S. and China.

Apple also said that iPhone sales in greater China outpaced those in the U.S. for the first time, putting the firm on pace for its highest annual profit since 2012 — a record — and the company forecast sales in the current period that may exceed analysts’ estimates.

As analysts across Wall Street are sending out new research this morning, some are changing their price targets. The iPhone was a common theme in their notes, with Citi reiterating their buy on a “solid beat on iPhones” and Deutsche Bank maintaining their outperform in a note titled “How about Them Apples; Delivers Robust iPhone Results and US$200 Billion Capital Return Program.”

Shares in Apple Inc were up 1.82% at US$132.65 in premarket trading Tuesday.

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One of the analysts who is raising price targets is Brian White of Cantor Fitzgerald. White gives Apple a new target of US$195 from a previous US$180. The new price is currently the highest among analysts surveyed by Bloomberg and gives Apple a market cap of roughly US$1.1 trillion.

In his note, titled “Powerful iPhone Cycle and Signs of Early Apple Watch Momentum,” White credits the iPhone and a strong outlook for other innovations like the Apple Watch for his increased optimism.

“We believe Apple is in the midst of a transformational, super cycle with a notably stronger iPhone cycle and initial strength around Apple Watch. The momentum of this iPhone cycle is notably stronger compared to those in the past, which we believe is driven by the larger screen sizes of the iPhone 6/6 Plus, combined with strength in emerging markets and the growing attraction of Apple’s robust digital ecosystem. At the same time, recent media reports about an “Apple Car,” combined with the opportunities we see for Apple in the TV and personal robot markets speaks to longer-term innovation opportunities. At the end of the day, we believe Apple is innovating like never before.”

White also said that he believes the watch will become a huge success.

“Adding to the allure of this cycle is the ramp of Apple Watch that we believe will prove to be the best selling new product in Apple’s history (within first 12 months). As such, we are increasing our EPS estimates for Apple and raising our 12- month price target to US$195.00 (from US$180.00).”

Shares of Apple are up more than 50 per cent over the past year.

Bloomberg.com

Apple Inc ‘working very, very hard’ to catch up with Watch demand, CFO says

Apple Inc. can’t keep up with early demand for its new watch though it’s trying to make sure there are enough products to ship by the end of June.

“The customer response for the watch has been great,” Chief Financial Officer Luca Maestri said Monday in an interview. “We are working very, very hard to catch up from a supply standpoint — keep in mind this is not only a new product but it’s an entirely new category.”

The watch, the company’s first new product in five years, made an unusual debut for Apple, which focused on selling the device online and using its stores for demonstrations of how the gadget works.

Optimism for Apple’s new product lineup has helped push the shares to all-time highs this year. The company on Monday reported record profit for the first three months of 2015. Apple Watch sales may reach almost 14 million units in the fiscal year that ends in September, according to the average estimate of five analysts surveyed by Bloomberg.

Angela Ahrendts, Apple’s retail chief, had told employees in a video that tight inventory and high demand meant the watch initially wouldn’t be available for sale in company stores and urged workers to send shoppers online to make the purchase.

Customers have been able to schedule demonstrations in Apple’s stores since April 10, when online pre-orders began. Shipment times quickly pushed past the official release date of April 24, with some customers promised delivery as late as June, depending on the version. Messages were sent to some buyers last week saying that their orders were shipping earlier than expected.

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Order Estimates

About 376,000 of the 1.7 million Apple Watches ordered were delivered to consumers in the U.S. this past weekend, according to Slice Intelligence. It estimated that 547,000 would ship by June 11.

Without the lines at retail locations that usually accompany an Apple new-product release, the watch’s introduction was more akin to a fashion debut. It won’t always be that way, the Cupertino, California-based company has said.

“We love our iconic, blockbuster launches that we do in the stores and have absolutely no fear you will see those” again, Ahrendts said in her video message.

Bloomberg.com

Apple Inc sells 61.2 million iPhones in latest quarter, blowing past expectations

Apple Inc. posted a 33 per cent jump in profit last quarter, fueled by strong demand for the iPhone and sales growth in China. The company also boosted its capital- return program by US$70 billion.

Net income in the quarter that ended in March was US$13.6 billion, or US$2.33 a share, and revenue rose 27 per cent to US$58 billion, the Cupertino, California-based company said Monday in a statement. IPhone sales in greater China outpaced those in the U.S. for the first time, helped by the Chinese New Year celebration, Apple said.

Booming demand for the larger-screened iPhone 6 and 6 Plus is putting Apple on pace for its highest annual profit since 2012 — a record — and the company also forecast sales in the current period that will exceed analysts’ estimates. That signals enduring demand for the iPhone and optimism for Apple Watch — the company’s first new gadget under Chief Executive Officer Tim Cook — which reached consumers last week.

“If it actually does come in with a strong March number that will make us say, ‘Hey, this does have more staying power, therefore I think there’s going to be less doubt, there’s more to proving that it’s working in China, proving that this has more sustainable momentum than other product cycles,” Alex Gauna, an analyst at JMP Securities LLC, said prior to the release.

Analysts on average had forecast second-quarter profit of US$2.16 a share and sales of US$56 billion, according to data compiled by Bloomberg.
IPhone unit sales jumped 40 per cent to 61.2 million. That topped analysts’ average prediction for 58.1 million, based on data compiled by Bloomberg. Total revenue from greater China surged 71 per cent to US$16.8 billion.

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Third Quarter

Apple forecast the momentum will continue in the third quarter, with revenue projected to rise to US$46 billion to US$48 billion from US$37.4 billion a year ago. Gross margins will be 38.5 per cent to 39.5 per cent, compared with 39.4 per cent a year earlier. Analysts on average had predicted revenue would rise 26 per cent in the current period to US$47 billion, with gross margin at 39.5 per cent.

The shares gained 1.8 per cent to US$132.65 at the close in New York. Renewed investor optimism for new products, including the Apple Watch, has helped boost shares to record levels this year. The company’s market value has surged to more than US$772 billion, making it the world’s largest by that measure.

Cash and marketable securities increased to US$193.5 billion at the end of March, Apple said. That’s driving Apple’s increase to its capital return program, which now totals US$200 billion. The plan unveiled Monday includes boosting its share-buyback authorization by US$50 billion to US$140 billion, and increasing the company’s dividend by 11 per cent.

Higher Dividend

The company will pay a quarterly dividend of 52 cents a share on May 14 to shareholders of record at the close of business May 11. Apple returned more than US$112 billion to investors from August 2012 to March 2015, the company said.

“We believe Apple has a bright future ahead,” Cook said in the statement. “The unprecedented size of our capital return program reflects that strong confidence.”

Financing Buybacks

Apple has also raised the equivalent of more than US$40 billion in debt in less than two years to help finance dividends and buybacks, letting it return more money to investors without incurring U.S. taxes on foreign profits.

While Apple has been praised by activist shareholder Carl Icahn for returning cash, he’s been pushing for more. Icahn has argued that Apple is undervalued and should be trading at US$203 a share, which would give the company a market capitalization of more than US$1 trillion. His optimism for Apple is driven in part by his expectations for the larger-screened iPhone and new products, including the Watch.

Another bright spot for Apple was Mac unit sales, which rose 10 per cent to 4.56 million, as new products have breathed life into the PC line. Analysts had predicted 4.7 million Mac unit sales.

IPad sales dropped 23 per cent to 12.6 million, marking the fifth straight quarter of year-over-year declines. Analysts had predicted a 17 per cent drop.

Bloomberg.com

Facebook Inc adds video call feature to Messenger for Android, iOS

Facebook Inc. is releasing a video-call feature for its Messenger application.

The company said Monday in a blog post that the feature will work for iOS and Android phones, competing with Apple Inc.’s Facetime, which is tailored to Apple devices, and Google Inc.’s Hangouts. Skype, from Microsoft Corp., and WeChat from Tencent Holdings Ltd., also provide video-messaging services.

“Video calling in Messenger is available for calls made from a mobile phone to another mobile phone, even if one person is on iOS and the other person is on an Android device,” the social-media company said.

Messenger, Facebook’s stand-alone chat application, has more than 600 million users and accounts for more than 10 per cent of voice-over-Internet calls made globally, the company said last week during its earnings presentation. Facebook has been adding features to the application, opening it up to outside developers this year so they can create games and functions that increase its popularity.

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Bloomberg News

Google Inc shopping for patents in experiment to limit lawsuits

Google Inc. is shopping for patents.

The largest Internet search company said it’s taking applications next month from patent owners willing to sell. After reviewing submissions, Google will pick the patents it wants, negotiate a sale and shell out the money by August.

The program is an experiment to see if Google can obtain patents that would otherwise fall in the hands of licensing firms that may use them in litigation against tech companies.

While ownership also would free Google to use the technology itself, there’s no indication that the Mountain View, California-based company is looking to be pitched ideas for new products.

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Instead, it is designed to “remove friction from the patent market,” according to the blog posting Monday by Allen Lo, Google’s deputy general counsel for patents.

Patent litigation has become a sore spot for tech companies and retailers who say they are too often targeted by patent owners of relatively trivial ideas looking for big payouts. They are pushing Congress to raise the bar for making such demands.

In many cases, the patents were first obtained by individual inventors who were unable to commercialize their ideas. They sold off their patents to licensing firms that specialize more in litigation than production.

There have been some nascent efforts to help inventors start their own companies. Groups like 1776 in Washington and various angel investors are starting to act as sort of “idea labs” for small businesses.

Bloomberg.com

All signs point to Apple Inc announcing a monster earnings report

Apple reports earnings for the quarter that ended in March after the market closes on Monday, April 27.

Get ready for another monster report.

Analysts are expecting big iPhone sales and think Apple could provide a major update to its cash return program.

According to data compiled by Bloomberg, analysts are looking for $56 billion in revenue, which would represent 23% growth.

Apple’s stock (AAPL) was trading up 1.77% at US$132.59 on the Nasdaq today.

Related BloombergApple Inc shares are up almost 12% on Monday ahead of earnings.

Apple’s revenue growth is expected to be driven by strong iPhone sales. Analysts are anticipating that Apple sold 58.1 million units, which would be an impressive 33% increase.  

If Apple sells 58.1 million iPhones, it will be the second-biggest quarter for iPhone sales in Apple’s history. Apple’s biggest-ever iPhone sales happened during the previous quarter, when it sold 74.5 million iPhones. 

Just a year ago, people were thinking that Apple’s iPhone business might have run its course. Unit growth was down to single digits, and it looked like Apple was going to have to lower prices to reignite growth.

The newest iPhones are proving to be killers for Apple. The iPhone 6 and iPhone 6 Plus have bigger screens than previous models, which is all it took to make Apple’s iPhone sales go nuclear.

Apple has effectively raised prices on the iPhone. The iPhone 6 Plus costs $100 more than previous models. The iPhone 6 costs just as much as prior models, but many people are gravitating towards the mid-tier storage model, which costs $100 more than the entry-level phone.

BI Intelligence

The average price of the iPhone hit a new high in the holiday quarter.

iPhone sales are all that really matter for Apple’s success. However, people will keep an eye on iPad sales, which have tanked in the past year. Analysts are expecting that Apple sold 13.6 million iPads, which would be down 17% on a year-over-year basis.

Apple has failed to provide any sort of clear explanation for why the iPad business has cratered. The best explanation seems to be that people are skipping the iPad in favor of iPhones with large screens. The Mac business is also doing well. Analysts expect Apple to sell 4.7 million Macs, which would be up 15%. (So an iPhone + a Mac seems to cutting into iPad sales.)

BI Intelligence

The biggest question surrounding Apple is the Apple Watch. Apple released the Apple Watch on Friday. Preorders looked strong. There are reports Apple is aiming for 20 million units in year one, which would be the biggest Apple product launch in history.

However, Apple has already said it’s not going to break out Apple Watch sales. Apple may be willing to make a one-time announcement about how many watches it sold, but we aren’t expecting anything.

As for Apple’s cash program, there’s been chatter that Apple could provide an updated plan on what it’s doing with dividends and buybacks. 

Last year, Apple announced a $130 billion program to return cash to shareholders. Credit Suisse analyst Kulbinder Garcha thinks that plan gets increased to $200 billion this year. Apple had $155 billion in cash on hand last quarter, so it makes sense to enact a massive share buyback/dividend plan. 

We’ll be covering it live as it happens, so tune in around 4 p.m. NYC time on Monday. 

Until then, here are the key numbers to watch, via Bloomberg:

  • EPS: $2.14
  • Revenue: $55.96 billion
  • iPhone units: 58.1 million
  • iPad units: 13.6 million
  • Mac units: 4.7 million
  • iPhone ASP: $656
  • iPad ASP: $418
  • Q3 revenue: $46.93 billion

Being involved in which games your kids play doesn’t mean you need to sit on the couch with them for 50 hours

I spend a lot of time thinking about the age appropriateness of various types of video game content.

I do this not only because it’s my job – in addition to covering games for Post Arcade I also contribute to an American outlet that focuses on evaluating media and technology with parents in mind – but also because I am a dad.

Up until last year, I had the sense that most of my daughter’s peers generally played age-appropriate games – Minecraft, Mario Kart, what have you. But as soon as she hit the fourth grade her schoolyard chums were suddenly talking to her about playing Grand Theft Auto and Saint’s Row – games with heaping amounts of violence, sex, drugs, and profanity, not to mention heroes with serious morality handicaps that are never rectified.

This probably shouldn’t have shocked me, yet it did. I’m all for moms and dads deciding what their kids can and can’t handle, but I felt like asking her teacher for a list of parents’ email addresses so I could send out a subtly scolding missive informing these kids’ folks in no uncertain terms of what they’re letting their kids – all of whom are of an age that can still be counted on the fingers of two hands – consume.

Still, I’ll allow that it can be hard – especially for non-gaming parents – to determine when kids are mature enough to properly process things like simulated violence and intercourse.

The key, it seems to me, lies in being involved and interested in what your kids are doing so you can see their reactions, interpret them, and talk about difficult concepts as they come up.

A recent article in Wired magazine asks the question: When is the right time for my kid to watch Star Wars? The answer – wonderful in its simple, inarguable truth – is that age isn’t as important as the person sitting on the couch beside them when they do.

Granted, games are different than movies. Most parents aren’t likely to sit beside their kids for 50 hours while they play through a giant role-playing game. But there are other ways in which they can be meaningfully involved with their kids’ interactive entertainment.

Activision

Back in 2009 a story made its way around the web about a 13-year-old boy who was dying to play Call of Duty – one of the earlier iterations set during the Second World War. The game was rated for players 18 and up due to its gritty violence, and his father wasn’t sure it was a good idea. But he also knew his son, and he understood him to be a mature and reasonable kid. So he made a deal with him: His son had to read the Geneva Conventions before he played the game and then discuss them with his dad. When the kid started playing he needed to take note of whether characters in the game followed the rules of war, then talk to his dad if they didn’t.

It’s a terrific example of a responsible father understanding his kid and taking an interest in his hobby. More than that, it made the son think critically about what he saw while playing – certainly more than the majority of kids who play Call of Duty.

In the years since that story came out I’ve occasionally received emails from parents wondering about the age appropriateness of certain games – as well as kids who have petitioned me to contact their parents because they decided not to allow them to play a particular game based on one of my reviews.

Both types of correspondence make me happy. The former reassure me that not all parents let their kids play whatever games they like without considering what might be in them, while the latter are generally written by smart kids who are as passionate about the medium as I was at their age – a possible indication that they may, in fact, be ready to play a given game even if they aren’t of its ESRB-approved age.

I always start my responses to parents by telling them that they know their kids best, then try to give them a sense of what their son or daughter will encounter in the game. Then, in the creative spirit of the dad who made his son read the Geneva Conventions before playing Call of Duty, I sometimes attempt to come up with a way to satisfy both sides. Give the kid a chance to play, but in a way that makes him or her think about the experience in a mature way.

A young teen recently asked me to explain to his parents why ought to be allowed to play The Elder Scrolls V: Skyrim, an open-ended fantasy role-playing game in which the player has complete control over the protagonist’s personality and actions. He or she can be noble champion who always quests to do the honourable thing, or a duplicitous villain, killing innocents and stealing anything that captures their eye.

Bethesda SoftworksThere are a lot of dragons in Skyrim

My suggestion to the teen’s father – assuming he thought his son was prepared for the game’s graphic violence, which is unavoidable no matter the player’s decisions – was to instruct his son to play the game as though he were the hero, to make the same decisions he himself would make in the real world. Then he was to have chats with his dad, who would ask questions like: Are there appropriate consequences to criminal actions? Did situations come up in which doing the right thing was notably less appealing than doing the wrong thing? What did you choose to do?

There’s a world of difference, I think, between mindlessly performing actions in a game and being forced to think about what those actions mean. Adults tend to think about significance and symbolism naturally, but kids often get caught up in the giddy spectacle of the action. They internalize what they see without considering what it means. Having a conversation with an adult to dissect the substance of the experience can help change that.

I received another email from a parent a few years ago about the appropriateness of Assassin’s Creed: Brotherhood for her early-teens son.

I’ve always thought the Assassin’s Creed games’ incredibly detailed recreations of period locations (in this case Rome circa 1499) were so impressive that they could serve as viable supplements to a social studies course. So I described its mature content – bloody melee combat, some language and sexuality – and suggested to the mom that if she thought her son could handle that, she should consider having him dig deeper into the experience by researching the accuracy of specific landmark buildings, the social customs of the time as described in the game, and some of the actual historical characters that pop up in the narrative.

My thought was to create a dialogue between the mother and her son. He could talk to his mom about what he was passionate about and maybe even learn something, and she would have an opportunity to better understand what her son was doing with his free time.

MicrosoftYou can create your own worlds in Minecraft

Thankfully, my own daughter is still quite satisfied playing Minecraft and Mario Kart, which is fine by me. There’s a world of entertaining games without blood and sex and profanity that even adults can have fun playing. No need for kids to get to games with more mature themes until they’re good and ready.

But even in games appropriate for her age I’ve still found opportunities to discuss concepts like consumerism (Skylanders), the depiction of female characters (Disney Infinity), and even cruelty to animals (Pokemon).

Point being, it’s important to know what your kids are playing – not just in order to ensure they can properly process it, but also to discuss what it means, make them think critically about it, and simply show them you’re interested in what they’re doing.

When you’re beside them, guiding them in even the subtlest of ways, you’re helping ensure that your kids will eventually be able to make smart decisions about what they choose to play and how they think about it when the day eventually comes that you aren’t there.

BlackBerry Ltd considers pulling out of Sweden and cutting 100 jobs in the process

BlackBerry Ltd. is considering closing its offices in Sweden, a move that would result in the loss of up to 100 jobs, a company spokesperson told Reuters.

“At this time, we are considering the closure of our offices in Sweden. Since this may impact approximately 100 employees, we are now initiating consultations with the employees’ trade unions,” the spokesperson said in an email.

BlackBerry had about 7,000 people as of Sept. 2014, according to the its website.

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© Thomson Reuters 2015

European Union ponders crackdown on Internet companies

The European Union is considering the creation of a regulatory body to oversee some of the largest e-companies in the world, including Google Inc. and Amazon.com Inc., according to a leaked document obtained by the Wall Street Journal.

The document, written in February, was prepared for the EU digital commissioner Günther Oettinger and warns of a possible “point of no return” where the economy becomes irrevocably tied to a few major Internet companies.

The report’s authors warn that certain digital businesses “are transforming into super-nodes that can be of systemic importance.”

While the report speaks to European fears of U.S. dominance, it is just the starting point for discussion (a long way from policy, as the WSJ points out).

“If this was to kickstart a debate about what actually is going on when I’m doing a Google search,” then it will even further impact the consumer, said Burkard Eberlein, professor at Schulich School of Business.

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The EU charges Google of manipulating their search engine to promote their own services over those of competitors.

Amazon and Etsy Inc. are two retailers mentioned in the document for their alleged ability to exclude companies from their listings. TripAdvisor Inc. is another website mentioned, with the EU paper saying they are the “main point of entry” to the travel sector and are “able to charge fees with full discretion.”

Google, currently under investigation by the EU Competition Commission in an anti-trust case, is the search engine of choice for hundreds of millions around the world. The company has a 90 per cent market share in the EU and 80 per cent in Canada. Bing, Yahoo and Ask.com trail Google in Canada, with 8 per cent, 4 per cent and 2 per cent respectively. (The final 6 per cent would be taken up by much smaller search engines.)

Mihkel M. Tombak, professor of technology, management and strategy at the University of Toronto, has concerns about Canada’s governmental protective bodies. “The Canadian authorities have been . . . fairly lax in protecting the Canadian consumer,” he said.

However, the Canadian Bureau of Competition has been “conducting an investigation into alleged anti-competitive conduct by Google Inc.,” according to an email from spokesperson Greg Scott.

The investigation started in 2013, but there was some sense of movement last week. The Financial Post reported April 21 that the Competition Bureau is seeking experts in online search and advertising to assist with an investigation – almost certainly its probe of Google Inc., Internet legal experts said.

Financial Post

How Toronto-based indie game shop Massive Damage got almost five times what it asked for on Kickstarter

It turns out gamers aren’t afraid of the unknown. Or at least they’re not afraid of investing in it.

Toronto-based independent game studio Massive Damage, Inc. (Please Stay Calm, Shadow Wars) last month launched a Kickstarter campaign for its new retro-styled sci-fi game, Halcyon 6, describing it using a variety of seemingly disparate terms including “roguelike,” “4X strategy,” “survival,” and “crew management.”

Even lifelong fans of the medium and these genres might have a tough time conjuring up a precise picture of what such a game might look and play like.

But that didn’t stop thousands of people from throwing their money at it.

Ken Seto – who, along with his brother Garry, spun Massive Damage out of their successful app development company Endloop (you might be familiar with iMockups, a wireframing productivity app that launched with the original iPad) – asked the gaming crowd for a relatively modest $40,000.

However, buoyed by vocal support from respected gaming sites like Rock, Paper, Shotgun and benefiting from promotional assistance offered by the Square Enix Collective, the project ended up earning nearly five times that amount, taking in more than $187,000 during its thirty day pledge period.

Post Arcade connected with Seto via email to learn more about his new game and try to wring out the secret to running such a successful Kickstarter campaign.

Massive Damage, Inc.

Halcyon 6 looks ridiculously ambitious. Can you distill it into a simple concept that our readers can understand?

The official one-sentence description we used on our Kickstarter was:

Halcyon 6 is a rogue-like sci-fi strategy survival game with base building, tactical combat, crew management and emergent storytelling.”

We’re still working on a tighter tagline.

What made you think about combining all of these seemingly incongruent elements into a single game? 

One of our design pillars was to make a game that gave you the same feeling as when you’ve just finished watching your favourite sci-fi shows, like Star Trek or Firefly.

Having established the core concept of a ragtag team working together to conquer challenges, we started exploring the idea of incorporating classic gameplay elements from long lost gems, like the Master of Orion, Jagged Alliance, and Star Control series.

Taking these elements together, streamlining and modernizing them along with a fresh modern take on retro style graphics, we found we had put together something very compelling.

Let’s talk about your Kickstarter campaign. How far along were you when you decided to launch it? Did the response surprise you?

We actually started talking about Halcyon 6 as early as March of 2014. We posted a bunch of early concept art to TIGSource forums, a site dedicated to indie game development. We then heard about the Square Enix Collective program from a friend at Kitfox Games.

Square Enix created this platform to allow indie game developers to pitch their concept to Square Enix’s player community. Games that got great feedback were offered to receive promotional assistance for their Kickstarter campaign.

We entered the Collective in the summer of 2014 with our early Halcyon 6 game concept art and game design. The response was amazing and Square Enix offered to help us with our Kickstarter campaign whenever we decided to start one.

After the Collective success, we got tied up with other projects and put Halcyon 6 on hold for a few months. We picked up the thread again in late fall and decided to take the art style up a notch. We then worked on new art as well as a more detailed game design and a working combat demo before we launched our Kickstarter in March 2015.

The response was tremendous and overwhelming. We knew we had something special but we had no idea that it would do that well. We hit our $40,000 target in less than 40 hours. Both me and Halcyon 6 game producer Peter McLean barely slept for the first 3 days of the campaign as we were scrambling to finish the material needed for the updates as our goal was met way earlier than expected.

We never anticipated that we would raise $187,706 for our passion project but we are extremely grateful to have the funding to build the best possible version of Halcyon 6 that we can dream of.

How has Kickstarter changed the game for developers like you? To what do you credit your game’s Kickstarter success?

During my pre-campaign research, I noticed a trend of fewer video game campaign successes in the recent years compared to the early days of Kickstarter.

For the indie games that did have successful campaigns, I noticed a few common traits. They clearly prepared for many months prior to the campaign launch. They had a great trailer. They had beautiful, modern art direction. Their backer reward levels were well thought out and not confusing. Their updates were frequent and they engaged their backers in the comments area. And they clearly understood how to make their concept appealing to their potential audience.

As for our campaign, I did all of the above and followed closely to the campaign designs for Darkest Dungeons and Moon Hunters. I thought those two did a fantastic job with their campaigns.

While we certainly got a lot of help from the Square Enix Collective’s mailing list campaigns, our day-one head start indicated that we were already on our way to success regardless.

Before the campaign, I warned everyone on my Facebook and Twitter that I would be talking quite a lot about Halcyon 6 in the coming days. I told them that not only was this very important to me and my company, but that I would also likely email them directly for support when the campaign launches. I got a lot of support on Facebook for my frankness and consideration.

Then, on day one, I did as I said. I emailed everyone in my contact book that remotely could help us with our outreach, even if I thought they probably wouldn’t back the campaign itself. I also emailed about 150 other game developers and studio CEOs to tell them about our game and campaign. That day, I probably wrote nearly 250 emails, each with a personal blurb at the beginning.

We managed to get about $10,000 in funding on day one. That was already 25% of our ask – a great start by any standard. Having such a great start was key to converting backers once Square Enix sent their email campaign to their player base on day two.

From there, we  worked on creating great campaign updates and stretch goals for our backers to get excited about. It was almost a 24-7 kind of job during the campaign. Preparation, hard work and community engagement were the keys to our success.

Will new game elements dictated by the many stretch goals you’ve met delay release?

No, we’ve stated early on that we wouldn’t let the stretch goals delay our initial game launch. There will be some elements we’ll incorporate for the main release but most extra content will be released post-launch.

If people missed the campaign is there any way for them to jump on board now? Are you doing any post-Kickstarter crowd funding? 

For a limited time, we’re letting people who missed out or couldn’t use Kickstarter access to still back the project. The link is here: http://www.h6game.net/paypal.

The reason it’s time limited is that we don’t want to be continuously distracted with fundraising. We have what we need to build what we wanted to build so we’re going to focus solely on development to ensure we get the game out as soon as possible for all of our backers and fans.

What are you focused on at this minute?

Primarily we’re focused on building Halcyon 6. We’re super excited that we raised the amount we did as it’ll allow us to just keep our heads down and focus on making an awesome game and getting it out there for the world to play as soon as possible.

The preceding interview was lightly edited for length and flow.

Best Buy Co cut to neutral as summer slowdown approaches

The retail sector has received a lot of attention from investors looking for a play on lower gasoline prices. But with that trade looking crowded, and the seasonally weak summer period for retail stocks approaching, names such as Best Buy Co. Inc. appear vulnerable to softer sales.

It’s already been a slow start to 2015 for the big-box electronics company, which is one reason why Best Buy was downgraded to neutral from overweight at J.P. Morgan on Friday. Analyst Christopher Horvers, who also cut his price target on the stock to US$40 from US$45, anticipates further uncertainty as Best Buy faces tough comparables in the second half of the year.

“We believe sales are off to a slow start to the year with TV shipment data slowing and Census sales at electronics and appliance stores turning negative,” Horvers told clients.

He expects this will raise investors’ focus on the second half of the year, and the fourth quarter in particular since it accounts for 57 per cent of Best Buy’s earnings.

The television sales cycle hit an inflection point in Q2 as comps were positive for the first time since early 2010. It further accelerated and generated 11-per-cent growth in the domestic consumer electronics category, which accounted for 33 per cent of Best Buy’s product mix in Q4.

The highly-anticipated iPhone 6/6S launch late in 2014 also appears to have boosted domestic same-store sales by 200 basis points in Q4, serving to offset slowing tablet sales.

The company’s move to close its Future Shop stores in Canada is expected to boost EPS by an estimated six cents U.S. for each of the next four quarters, but Horvers believes the risks associated with a crowded retail sector — mostly driven by a rotation-led revaluation — and the historically weak summer period for retail stocks, warrants more cautious on names that don’t have comp sustainability or upside.

These factors have the analyst seeing a lid on Best Buy’s valuation until the all-important fourth quarter.

Comcast Corp pulls plug on $45-billion Time Warner Cable merger

Comcast Corp and Time Warner Cable Inc said on Friday they had abandoned their proposed US$45 billion merger after U.S. regulators said the deal would give Comcast an unfair advantage in the Internet-based services market.

The Department of Justice said the plan to merge the two biggest U.S. cable companies would have made Comcast an “unavoidable gatekeeper” for broadband services.

The deal had faced vocal criticism from some politicians, media company executives and diverse consumer and industry groups, who had worried it would create a monolith with too much control over what Americans do online and watch on TV.

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Federal Communications Commission Chairman Tom Wheeler said on Friday that the merger would have posed an “unacceptable risk to competition and innovation.”

The U.S. cable TV industry has been rapidly consolidating in the past few years as it grapples with the rising popularity of satellite TV and Web-based entrants such as Netflix Inc.

“Today, we move on,” Comcast Chief Executive Brian Roberts said in a statement.

Comcast shares were up 1.3 per cent at US$59.99 in premarket trading, while Time Warner Cable shares were up 0.83 per cent at US$149.99.

© Thomson Reuters 2015

Apple Watch finally goes on sale — but you can’t get it at the Apple Store

TOKYO — The Apple Watch launched globally on Friday with a small queue of Japanese tech-addicts lining up in Tokyo for Apple Inc.’s first wearable gadget, but there was no sign of the excitement usually attached to the company’s product rollouts.

Buyers can take the smartwatch home from a handful of upscale boutiques and department stores, including The Corner in Berlin, Maxfield in Los Angeles and Dover Street Market in Tokyo and London, which Apple courted to help position the watch as a fashion item.

But the gadget will not be sold at Apple stores on Friday. The company is directing people to order online instead, which should prevent the long lines of Apple devotees who typically flock to iPhone and iPad launches.

About 50 people lined up to buy the watch at electronic store Bic Camera in Tokyo’s Ginza district, while at the nearby Apple Store it was like any other Friday, according to Reuters reporters at the shops.

“I buy one or two Apple products every time they release something new,” Chiu Long, a 40-year-old IT worker from Taiwan, told Reuters while queuing up at Bic Camera.

“I like to run, so the heart rate reader is a progress,” he added.

At a retail outlet of mobile carrier SoftBank Corp around 20 people queued to get their hands on the gadget.

I’m also an Apple fan. I simply want it

“I want to develop my own application that’s compatible with the smartwatch,” 27-year-old IT worker Tatsuya Omori said as he waited in line outside the store.

“I’m also an Apple fan. I simply want it.”

[youtube=http://www.youtube.com/watch?v=a8GtyB3cees&w=560&h=315]

Technology lovers and investors keen to find out the components of the watch were left frustrated, with a tough resin coating protecting the core computing module from scrutiny.

Gadget repair firm iFixit, which has successfully prised open other Apple products on their launch day to reveal their components, said the U.S. company also appeared to be promoting its brand on the watch’s inner workings, complicating detailed analysis of the parts’ origins.

GAUGING DEMAND

The lack of queues at Apple stores will make it hard to judge popular demand for the watch, which comes in 38 variations with prices ranging from US$349 for the Sport version to $10,000 and more for the gold Edition.

Apple has not released any numbers since it opened for pre-orders on April 10, although many buyers were told their watches would not arrive for a month or more as supply appeared to dry up.

Wall Street estimates of Apple Watch sales vary widely. FBR Capital Markets analyst Daniel Ives raised his sales estimate this week to 20 million watches from 17 million, based in part on online order backlogs.

“There was a question over whether the trajectory and demand for wearables in the Apple ecosystem was there and real,” said Ives. “But it’s a resounding yes.”

Apple itself said on Wednesday that some customers will get watches faster than promised.

“Our team is working to fill orders as quickly as possible based on the available supply and the order in which they were received,” Apple said in a statement.

The Cupertino, California company previously predicted that demand would exceed supply at product launch.

© Thomson Reuters 2015

Amazon.com Inc sales exceed estimates as web services drive growth

Amazon.com Inc. reported first-quarter sales that beat analysts’ estimates as investments in speedy delivery services, data centres and original video programming lured more customers to the world’s biggest online retailer.

Sales jumped 15 per cent to US$22.7 billion, the company said Thursday in a statement. Analysts on average projected US$22.4 billion, according to data compiled by Bloomberg. The company, also the largest seller of cloud-computing services, broke out results from its Amazon Web Services unit for the first time, saying revenue rose 49 per cent to US$1.57 billion.

Chief executive officer Jeff Bezos has pumped money into building new warehouses and data centres, and adding media content and services such as a marketplace for home-improvement professionals and a hotel-booking site. His aim is to keep users on Amazon for more of their everyday needs and to convert occasional shoppers into Prime members, who pay US$99 a year for delivery discounts and online streaming of music, movies and TV shows.

“For a company of this size, for them to continue to generate this kind of revenue growth is nothing short of impressive,” said Robert Drbul, an analyst at Nomura Securities International Inc., who recommends buying the stock. “When you think of other companies in retail of this magnitude, it’s a big deal.”

The shares gained 4.9 per cent in extended trading, after briefly dropping following the report. Amazon stock rose less than one per cent to US$389.99 at the close in New York, leaving the stock up 26 per cent this year.

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International sales dropped 1.8 per cent to US$7.75 billion in the first quarter. Sucharita Mulpuru, analyst at Forrester Research Inc., said that shows weakness in the U.K., Germany and Japan, where Amazon generates most of its overseas sales.

“The only really bad news was international,” she said. “Lots of other companies have struggled with international growth.”

For the first quarter, operating expenses totalled US$22.5 billion, up 15 per cent from a year ago and just shy of the amount the company brought in as revenue. Amazon said its first-quarter net loss was US$57 million, or US12 cents a share, matching estimates. A year earlier, net income was US$108 million, or 23 cents.

Seattle-based Amazon forecast second-quarter sales of US$20.6 billion to US$22.8 billion, in line with analysts’ average projection of US$22.1 billion. Operating results will range from a loss of US$500 million to a profit of US$50 million. Analysts were predicting operating profit of US$9.16 million.

The Amazon Web Services division, which provides data storage and computing power to other businesses, helps Amazon benefit from growth in traffic to the websites of other companies, including Pinterest Inc. and Netflix Inc. The unit generated first-quarter profit of US$265 million, helping to make up for losses in other parts of the company’s business.

“People should be positive on this,” said Michael Pachter, an analyst at Wedbush Securities in Los Angeles. “They’re making a very healthy margin with AWS and they should get a higher margin as they continue to grow.”

Amazon is primarily known for selling goods directly to consumers. Providing warehouse space and packaging to other online retailers and selling computing services helps Amazon convert competitors into clients. More than 2 million merchants sell goods through Amazon.com, sharing a cut of each sale in exchange for access to Amazon’s 270 million active shoppers.

The solid first-quarter growth follows a profitable fourth quarter, which helped blunt a decline in investor confidence in Bezos’s investment spree that sent the stock down by almost a fourth last year.

Amazon pledged to continue investing in data centres and fast delivery this year. It expanded its one-hour delivery of certain products, which is now available in six cities, including Manhattan, Dallas and Miami. It also unveiled the Amazon Dash Button, which lets customers order delivery of laundry detergent or macaroni and cheese with one touch, and announced new features for its US$199 interactive Echo speaker that makes it a voice-activated light switch.

Macquarie Research analyst Ben Schachter estimates Amazon has at least 35 million Prime members and that approximately 50 per cent of U.S. households will have a membership by 2020.

“This has major implications for both Amazon and key retail competitors,” Schachter wrote in a report on Tuesday.

Bloomberg.com

Comcast Corp said it is planning to drop offer for Time Warner Cable Inc

Comcast Corp. is planning to walk away from its proposed takeover of Time Warner Cable Inc., people with knowledge of the matter said, after regulators planned to oppose the deal.

Comcast is planning to make a final decision on its plans Thursday, and a announcement on the deal’s fate may come as soon as Friday, said one of the people, who asked not to be named discussing private information.

This week, U.S. Federal Communications Commission staff joined lawyers at the Justice Department in opposing the planned $45.2 billion transaction. FCC officials told the two biggest U.S. cable companies on Wednesday that they are leaning toward concluding the merger doesn’t help consumer consumers, a person with knowledge of the matter said.

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An FCC hearing can take months to complete and effectively kill a deal by dragging out the approval process beyond the companies’ time frame for completion. Justice Department staff is also leaning against the deal, Bloomberg reported last  week.

Comcast shares rose 2.2 percent to $60.06 at 3:07 p.m. in New York, while Time Warner Cable climbed 0.5 percent.

Sena Fitzmaurice, a spokeswoman for Comcast, declined to comment.

While the DOJ has to present a case in court to block the deal, an FCC hearing referral could prove to be the bigger obstacle to Comcast’s bid to expand its cable and Internet footprint.

The last time the FCC staff proposed sending a merger to a hearing was over AT&T Inc.’s bid to buy T-Mobile USA Inc. in 2011, prompting the companies to drop the deal. The Justice Department had already brought a lawsuit seeking to block the merger.

Comcast representatives came away from the FCC meeting with the impression the deal was in trouble, according to a person familiar with the matter.

Bloomberg.com

Microsoft Corp beats analysts’ expectations as cloud revenue jumps

Microsoft Corp., in its second year under Satya Nadella, reported profit that exceeded analysts’ estimates as growth in corporate and cloud software sales made up for slowing demand for personal-computer programs.

Profit, excluding costs related to restructuring and integration, was 62 cents a share on sales of $21.7 billion in the fiscal third quarter ended March 31, the company said Thursday in a statement. Analysts had estimated 53 cents on sales of $21.1 billion, according to data compiled by Bloomberg.

Nadella has been shifting strategy at the world’s largest software maker to focus on cloud and mobile software, including products that work with rival’s offerings. While cloud revenue is growing, a cycle in which companies upgraded computers has run out of steam and Microsoft’s overseas sales have been hurt by a strong dollar and geopolitical concerns in China and Russia.

“They’ve got a growing cloud number that isn’t stopping,” said Mark Moerdler, an analyst with Sanford C. Bernstein & Co. who rates the shares the equivalent of a buy.

Net income fell to $4.99 billion, or 61 cents, from $5.66 billion, or 68 cents, a year earlier.

Unearned revenue, a measure of future sales, was $20.2 billion, compared with the $20.95 billion average estimate of four analysts surveyed by Bloomberg.

Bloomberg.com

Google Inc’s first-quarter sales climb as advertising volume increases

Google Inc.’s revenue climbed 14 per cent as the number of ads on the company’s search properties gained.

Sales, minus revenue passed to partners, rose to US$13.9 billion in the first quarter, the company said in a statement Thursday. That compared with analysts’ average projection for US$14 billion, according to estimates compiled by Bloomberg.

Google is stepping up investments to ensure that people continue to spend time using search, shopping and other Internet services. That in turn boosted the Web company’s advertising volume, which rose 13 per cent. Users are going straight to Facebook Inc., Amazon.com Inc. and other Web-based services as they spend more time on smartphones and tablets, and Google is making sure that its main search services continues to lure people and advertising dollars.

“Search continues to be a very valuable ad unit,” said Sameet Sinha, an analyst at B. Riley & Co. “Everybody likes search.”

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The shares of Mountain View, California-based Google rose in extended trading. The stock advanced 1.5 per cent to US$557.46 at the close in New York, leaving it up 5.1 per cent this year.

First-quarter net income was US$3.59 billion, compared with US$3.45 billion a year earlier.

Excluding some items, profit was US$6.57 a share, missing analysts’ average projection for US$6.63.

Google is stepping up investments in new businesses to drive growth. Earlier this week, it unveiled a new wireless service called Project Fi. Google also plans to offer a subscriber version of YouTube as soon as this year, letting viewers see clips without having to sit through ads.

The company also is trying to improve its search experience on smartphones. Earlier this week, Google updated its search service to favour websites that are tailored to mobile devices.

“They still own the search business,” said Martin Pyykkonen, an analyst at Rosenblatt Securities Inc. “But people are finding better ways — or at least alternative ways — to find the information that they want. That can be Twitter; that can be your friends on Facebook.”

Bloomberg News

CIO security roundup: Oracle patches, Microsoft security updates, and Simda Botnet

It’s been a lively week in the security realm. Here’s a roundup of significant flaws in need of patching.

Microsoft releases critical security patches

This month’s Microsoft Patch saw the release of four patches rated Critical, and seven rated Important. According to the company’s advisory, the issues affect Windows, Internet Explorer, Microsoft Office, Microsoft SharePoint, and the .NET Framework. One of the Critical flaws, a vulnerability in Windows HTTP.sys, is already being exploited, according to SANS, who strongly advises that patch described in MS15-034 be applied as soon as possible.

Oracle patches multiple products

Oracle has released a Critical Patch Update containing 98 security fixes across product lines including the Oracle database, JD Edwards, Peoplesoft , Fusion Middleware, the E-Business Suite, Oracle Supply Chain, Siebel, its commerce platforms, Java, MySQL, and others. Some of the flaws are remotely exploitable without authentication. The Java patches include the last security updates for Java 7, which is going out of support, and user are urged to update to a supported version of Java if they haven’t already.

File sharing flaw in online storage allows access to private files

Collaboration vendor Intralinks has discovered that a flaw in services such as Dropbox and Box that it reported over a year ago, and that can expose private user information, has not been completely addressed. It said in its post, “In 2014, when using Google Analytics to review the results of some campaigns, we inadvertently discovered the fully clickable URLs necessary to access documents in some Dropbox and Box accounts. Subsequently, we found other issues with file sharing apps, and reported our concerns to the affected companies so they could take any necessary action.” However, it said that last month it again discovered accessible user information when analyzing a new campaign, including, in one case, a completed tax return revealing sufficient information to allow identity theft. Intralinks recommends that anyone sharing sensitive files using Dropbox subscribe to the business version of the product, which offers some safeguards that the free product does not.

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Alert issued about Simda Botnet

The United States Department of Homeland Security, in collaboration with Interpol and the Federal Bureau of Investigation, has released a Technical Alert describing the Simda botnet, and offering ways to prevent infection and to remediate if affected. It noted that, “A system infected with Simda may allow cyber criminals to harvest user credentials, including banking information; install additional malware; or cause other malicious attacks. The breadth of infected systems allows Simda operators flexibility to load custom features tailored to individual targets.”

SearchBlox flaws revealed

Enterprise search and text analytics vendor SearchBlox has released an update to address a series of flaws in version 8.1 and below of its software that could allow attackers to execute arbitrary scripts, and access unauthorized data.

Blue Coat malware analysis appliance flaw

Security vendor Blue Coat says that all versions of its Malware Analysis Appliance prior to version 4.2.4 are vulnerable to a cross-site scripting flaw that could allow attackers to harvest user credentials. In its advisory, it says that there are no workarounds, and users should update to the latest software release as soon as possible.

HP network automation remote vulnerabilities

HP has issued a security advisory about multiple issues in its Network Automation product, including Cross Site Request Forgery (CSRF), Cross Site Scripting (XSS), clickjacking and other vulnerabilities which can be used to create remote exploits. CERT says that a remote, unauthenticated attacker may be able to trick an authenticated user into making an unintentional request to the web server that will be treated as an authentic request, leading to the possibility of privilege escalation, information leakage, code execution, or denial of service. HP recommends applying the patches detailed in its advisory as soon as possible.

Wind Mobile Corp’s new CEO recruits two former teammates from Public Mobile

Wind Mobile Corp. is beginning to look a lot like faltered upstart Public Mobile Inc.

The executive shuffle at Wind continues as the carrier’s new chief executive Alek Krstajic, who founded and led former rival Public Mobile until it was acquired by Telus Corp. in 2013, has brought aboard two senior members of his old team within his first month at the helm.

Wind named Bob Boron its chief regulatory officer, and Bruce Kirby its chief strategy officer and interim chief financial officer. The pair held similar positions at Public Mobile, where they worked with Krstajic.

Boron will replace Simon Lockie while Kirby takes over for Brice Scheschuk, who will both return their focus to Globalive Capital, a Toronto-based company that has invested in over 25 start-ups, 10 venture funds, 15 micro-cap public businesses and local real estate. Globalive, which is led by Wind’s founder and honourary chairman Anthony Lacavera, still maintains a stake in the fledgling carrier.

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Wind spokeswoman Amanda Gun-Munro confirmed the new hires, which were first reported by telecom industry site Cartt.ca, but declined to comment on when Boron and Kirby will assume their new roles, or when Lockie and Scheschuk will transition back to Globalive.

On March 23, Wind unveiled a major executive overhaul featuring Krstajic, a new chairman, two new directors and a new ambassadorial role as honourary chairman for Lacavera.

For the five-year-old upstart to solidify its position as Canada’s only viable fourth national wireless carrier, it will require long-term financing – a minimum of $300-million, per Lacavera – in the public and private markets to expand and repair the cellular network where Wind currently operates.

CIBC launching Apple Watch app

Checking your savings account balance will soon be as quick and easy as checking the time.

Canadian Imperial Bank of Commerce announced Thursday that it’ll be the first of Canada’s big five banks to make its mobile banking application available for clients to download on Apple Inc.’s Watch when the much-anticipated new gadget hits store and virtual shelves for purchase this Friday.

CIBC will join Bank of Nova Scotia subsidiary Tangerine, which revealed last month that its app will also be accessible to Apple Watch users, in the App Store. Clients from both banks will be able to perform functions such as viewing account balances and recent transactions.

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These announcements showcase the many ways Canadian banks are willing and racing to satisfy people’s desire for convenience, or as CIBC put it in a release, giving “clients another option to bank when, where and how they want” — often through newer technologies.

In the release, CIBC boasts it was the first in Canada to bring to market a mobile banking app for iPhone and a mobile payment app, and the first among the big five banks to offer eDeposits. Tangerine had it second, behind Vancouver’s Westminster Savings.

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