Company news in brief
Apple spruces up Macs, iPad Pros and raises prices
Apple Inc refreshed some of its lesser-known products at a New York event on Tuesday, adding iPhone features like facial recognition to the iPad Pro and faster processors and better displays to some Mac computers that had gone years without a major update.
The devices will hit stores on Nov. 7. Counting new iPhones and Apple Watches released last month, Apple will have more than half a dozen new products on shelves for the holiday shopping season, many at higher prices than previous models.
The Cupertino, California, company introduced new versions of the iPad Pro, its higher-end tablet that competes with Microsoft Corp’s Surface, with thinner bezels and more screen space, along with the face unlock system found on Apple’s newer iPhones.
Prices for the iPad Pros increased to US$799 and US$999 for 11- and 12.9-inch models, though Apple plans to keep an older 10.5-inch version on sale for US$649.
-Nampa/Reuters
Court adjourns case between MTN, central bank
A Lagos judge adjourned a hearing on Tuesday in a US$10.1-billion dispute between South African telecoms firm MTN Group and Nigeria’s central bank to Dec 4.
The central bank alleges the firm illegally sent US$8.1 billion abroad, and the Nigerian government has demanded US$2 billion in taxes from MTN.
MTN, which makes about a third of its annual core profit in Nigeria, has said the allegations are without merit.
-Nampa/Reuters
Mastercard shares slide
Mastercard’s shares reversed course to fall sharply in afternoon trading on Tuesday as investors worried the company’s third-quarter revenue growth was largely being driven by rebates and incentives and not by transaction volumes.
The payments processor said its revenue rose 14.7% to US$3.90 billion in the quarter, out of which rebates and incentives accounted for US$1.74 billion.
Payments processors and card companies use rebates and incentives to forge alliances with banks and merchants, which then pass on these incentives to customers who begin using their networks for transactions.
“If I had to pick at something ... it would be that the quality of revenue came mostly from incentives and rebates, rather than from gross revenue trends,” said Darrin Peller, managing director and senior research analyst at Wolfe Research.
The company’s gross dollar volume - the dollar value of transactions processed which is considered the core source of revenue - rose 9% to US$1.47 trillion, but missed KBW’s estimates of US$1.51 trillion.
Shares of the company, which rose more than 2% before the opening bell, fell 4.2% to US$186.60 in afternoon trading, overshadowing the quarterly profit and revenue that beat estimates on the back of strong consumer spending.
Several analysts said the increase in the company’s organic revenue was weak and the revenue growth powered by incentives and rebates is not an ideal way to grow.
-Nmapa/Reuters
Coke profits get health kick in third quarter
Coca-Cola Co’s quarterly revenue and profit topped Wall Street expectations on Tuesday, as investments to cater to changing consumer tastes paid off with higher sales of its sugar-free sodas and vitamin waters.
The world’s biggest beverage maker, like rival PepsiCo Inc, has been building a portfolio of non-carbonated drinks and doubling down on its investments in enhanced waters such as electrolyte-filled smartwater.
Coke also paid US$5.1 billion for the world’s second-largest coffee chain Costa earlier this year and took a stake in Kobe Bryant-backed sports drink BodyArmor in a bid to court a younger demographic that prefers sipping lattes over gulping big sodas.
Chief executive officer James Quincey played down media reports in recent weeks that the company is looking at cannabis-infused drinks in North America as a wave of legalisation spreads across Canada and some US states.
“We don’t have any plans at this stage to get into this space,” he told a post earnings call with analysts, adding that the pace of acquisitions in the quarter should not be taken as a sign of how the company would proceed from here.
“M&A of course is not a strategy in and of itself – it’s an enabler of our strategy.”
-Nampa/Reuters
Walmart kicks off US holiday season
Walmart Inc said on Tuesday it will offer faster checkout at its stores and easier navigation with digital maps indicating exact locations of products, as it gears up to grab a larger share of shoppers’ gift budgets this holiday season.
The retailer is also comfortable with the amount of inventory it has in stock, said Steve Bratspies, chief merchandising officer at Walmart. Online sales suffered during the same period last year when Walmart added more holiday merchandise like electronics, toys and gifts, but did not stock enough everyday items.
-Nampa/Reuters
Apple Inc refreshed some of its lesser-known products at a New York event on Tuesday, adding iPhone features like facial recognition to the iPad Pro and faster processors and better displays to some Mac computers that had gone years without a major update.
The devices will hit stores on Nov. 7. Counting new iPhones and Apple Watches released last month, Apple will have more than half a dozen new products on shelves for the holiday shopping season, many at higher prices than previous models.
The Cupertino, California, company introduced new versions of the iPad Pro, its higher-end tablet that competes with Microsoft Corp’s Surface, with thinner bezels and more screen space, along with the face unlock system found on Apple’s newer iPhones.
Prices for the iPad Pros increased to US$799 and US$999 for 11- and 12.9-inch models, though Apple plans to keep an older 10.5-inch version on sale for US$649.
-Nampa/Reuters
Court adjourns case between MTN, central bank
A Lagos judge adjourned a hearing on Tuesday in a US$10.1-billion dispute between South African telecoms firm MTN Group and Nigeria’s central bank to Dec 4.
The central bank alleges the firm illegally sent US$8.1 billion abroad, and the Nigerian government has demanded US$2 billion in taxes from MTN.
MTN, which makes about a third of its annual core profit in Nigeria, has said the allegations are without merit.
-Nampa/Reuters
Mastercard shares slide
Mastercard’s shares reversed course to fall sharply in afternoon trading on Tuesday as investors worried the company’s third-quarter revenue growth was largely being driven by rebates and incentives and not by transaction volumes.
The payments processor said its revenue rose 14.7% to US$3.90 billion in the quarter, out of which rebates and incentives accounted for US$1.74 billion.
Payments processors and card companies use rebates and incentives to forge alliances with banks and merchants, which then pass on these incentives to customers who begin using their networks for transactions.
“If I had to pick at something ... it would be that the quality of revenue came mostly from incentives and rebates, rather than from gross revenue trends,” said Darrin Peller, managing director and senior research analyst at Wolfe Research.
The company’s gross dollar volume - the dollar value of transactions processed which is considered the core source of revenue - rose 9% to US$1.47 trillion, but missed KBW’s estimates of US$1.51 trillion.
Shares of the company, which rose more than 2% before the opening bell, fell 4.2% to US$186.60 in afternoon trading, overshadowing the quarterly profit and revenue that beat estimates on the back of strong consumer spending.
Several analysts said the increase in the company’s organic revenue was weak and the revenue growth powered by incentives and rebates is not an ideal way to grow.
-Nmapa/Reuters
Coke profits get health kick in third quarter
Coca-Cola Co’s quarterly revenue and profit topped Wall Street expectations on Tuesday, as investments to cater to changing consumer tastes paid off with higher sales of its sugar-free sodas and vitamin waters.
The world’s biggest beverage maker, like rival PepsiCo Inc, has been building a portfolio of non-carbonated drinks and doubling down on its investments in enhanced waters such as electrolyte-filled smartwater.
Coke also paid US$5.1 billion for the world’s second-largest coffee chain Costa earlier this year and took a stake in Kobe Bryant-backed sports drink BodyArmor in a bid to court a younger demographic that prefers sipping lattes over gulping big sodas.
Chief executive officer James Quincey played down media reports in recent weeks that the company is looking at cannabis-infused drinks in North America as a wave of legalisation spreads across Canada and some US states.
“We don’t have any plans at this stage to get into this space,” he told a post earnings call with analysts, adding that the pace of acquisitions in the quarter should not be taken as a sign of how the company would proceed from here.
“M&A of course is not a strategy in and of itself – it’s an enabler of our strategy.”
-Nampa/Reuters
Walmart kicks off US holiday season
Walmart Inc said on Tuesday it will offer faster checkout at its stores and easier navigation with digital maps indicating exact locations of products, as it gears up to grab a larger share of shoppers’ gift budgets this holiday season.
The retailer is also comfortable with the amount of inventory it has in stock, said Steve Bratspies, chief merchandising officer at Walmart. Online sales suffered during the same period last year when Walmart added more holiday merchandise like electronics, toys and gifts, but did not stock enough everyday items.
-Nampa/Reuters
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