Microsoft is set to spend up big in an effort to get people to actually visit their new Sydney store.
David Richards
Aldi Set To Expand Appliance And CE Sales As Revenues Hit $6 Billion
German supermarket chain Aldi who is set to expand their house brand appliance and consumer electronics business turned over $6 Billion in Australia in 2014.
The Company whose performance and open reporting of profits
has left egg on the face of Wesfarmers chief executive Richard Goyder who recently
said Aldi’s tax affairs required a “good look” has recently submitted
documents to the Senate inquiry into tax avoidance.
What the documents have revealed is that Aldi unlike
Woolworths is delivering surging profits in its Australian business who are
working closely with several International and Australian based distributors to
expand their range of house branded appliances which according to Aldi
management “sell out” within hours of being ranged.
Last year the Company sold 10,000 55″ TV’s in 90
minutes, also popular are their food mixers and combination Sterling oven, range
hood and hotplate sets.
In a submission to the Senate inquiry into tax avoidance,
the notoriously publicity shy discount supermarket chain both defends its
behaviour on tax and reveals its profitability.
The company’s submission to the Senate charts its sales
growth from $3.14 billion in the 2010 calendar year through to fractionally
under $5 billion in the 2013 calendar year.
It reveals the company’s pre-tax profit more than doubled
over the same period from $121 million in 2010 to $261 million four years
later.
The figures show Aldi’s revenue and profit climbing strongly
each year. That has come as Aldi has expanded rapidly to establish a network of
373 stores in Queensland, NSW, ACT and Victoria now employing 9000 people.
The company uses the profit figures to justify its tax
position. It declares both its income tax expense, which is an accounting
assessment, as well as its actual income tax paid average more than 30 per cent
over the period. In one year, 2011, the company claims to have paid 34 per cent
income tax well above the 30 per cent corporate tax rate.
The figures are not produced as audited accounts so the
underlying assumptions are not entirely transparent but the submission is
signed by the company’s Australasian chief executive Tom Daunt.
Aldi Senate Submission Fairfax Media said that one of the
key focuses of the Senate inquiry is transfer pricing. Aldi informs the
committee that it does not hold any related party loans and does not pay
royalties or licence fees to international related parties.
About 1 per cent of its merchandise and services expenditure
is made to international related parties, it says.
“In summation, as evidenced above Aldi wishes to make
it explicitly clear that it does not engage in the inappropriate pricing of
international related party transactions for the purposes of artificially
reducing taxable profits in Australia,” it says.
The company also claims to have a “very open and
positive working relationship” with the Australian Taxation Office (ATO).
Microsoft Flogged For Trying To Gouge Consumers With New Platform
Microsoft who are tipped to launch a “Gaming” TV in partnership with Hitachi, in an effort to flog more Microsoft content, is copping a flogging for their Universal Windows Platform (UWP) initiative which is behind their TV move.
Benq Buys Siemens Mobile Business
The CEO of BenQ is confident of success following the aquisition of the Siemens mobile phone brand. He blames poor management decisions for past failures.
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Asia. BenQ is a relative newcomer to the handset market, Siemens are number two in Europe and number three
Apple Pulls The Plug On Samsung
Samsung’s guilty plea to a felony price-fixing charge is believed to be the reason why Apple has pulled out of a deal with the Korean company.Samsung Electronics Co.’s talks with Apple Computer Inc. on a possible joint investment to produce NAND flash memory chips — a key component of Apple’s newest portable music players — have broken down.
Samsung spokeswoman Sungin Cho said the negotiations “didn’t proceed beyond the preliminary stages,” but she would not say why.
The Korea Times newspaper, however, reported Monday that the potential $3.8 billion joint investment deal collapsed because Apple pulled out after hearing that South Korea’s Fair Trade Commission could investigate Samsung over its supply of flash memory to Apple.
Samsung is supplying the chips, used in MP3 players and digital cameras, to Apple for use in its new, pencil-thin iPod Nano music player.
Earlier this month, local media quoted Fair Trade Commission Chairman Kang Chul-kyu as saying on a radio program that the antitrust regulator could investigate Samsung if necessary on whether the company sold chips to Apple at below-market prices.
South Korean media have reported that Samsung is supplying the chips to Apple at half their market value, a claim Samsung executives deny. The Korea Times reported that South Korean MP3 manufacturers claim their sales are being hurt by the low price of the iPod Nano.
Last week, U.S. officials said Samsung will pay a $300 million fine to settle accusations it secretly conspired with industry rivals to fix prices of dynamic random access (DRAM) chips and force consumers them to pay higher prices. DRAM chips are most widely used in personal computers.
Samsung is the world’s biggest producer of DRAM and NAND chips. It is the second-largest semiconductor maker after Intel Corp. and is also one of the largest makers of liquid crystal displays, or LCDs, along with domestic rival LG Philips LCD Co.
Samsung’s guilty plea to a felony price-fixing charge capped a three-year investigation by the U.S. Justice Department into makers of the chips. The penalty is the second-largest criminal antitrust fine in the United States.
While Samsung officials have openly talked about supplying flash memory chips to Apple, they have declined to provide details.
Last week, I.J. Kim, vice president of memory sales and marketing at Hynix Semiconductor, the world’s second-largest memory-chip maker after Samsung, said that Hynix is in talks with Apple to supply NAND flash memory chips. He gave no specifics.
Online Not As Profitable As Stores Claims Officeworks CEO
The CEO of Officeworks claims that selling online is not as profitable as selling goods in a store.Ward, who was speaking at the Retail World conference in
Melbourne, blamed “small” purchases for a fall in online profitability.
He said that while
online sales accounted for 13 percent of Officeworks’ sales, they generated
less than 10 percent online despite less staff and lower lease costs.
“We are selling more online than we ever were before…we are selling more units; we have more transactions going through our
entire business,” he said. “But we are selling them for less, as
basket sizes have come down because we have made life so convenient for the
customer.
“That’s not a bad thing, but it does have implications
for your profitability because your supply chain is under more pressure than
ever from selling more baskets, more often.”
Big W managing director Julie Coates said retailers needed
“resilience, patience and courage” to stick it out through the early
years of online selling, the Australian reported.
“You’re setting yourself up for the future, not for
today, and you need to be in it now if you’re going to build and learn to
create the multi-option future for the customer,” she said.
Ms Coates said it was vital that any move into online be
integrated into the rest of the business, rather than run as a separate
division, so that both sides could benefit from the capabilities and resources
of the other.
WA Has The Grumpiest Consumers And Panasonic Plasma Is King
Panasonic Hisence and Virgin Mobile are among the most trusted brands in Australia whilst the “grumpiest” CE consumers live in WA according to a new consumer survey.
Microsoft seeks partners to build $300 PDA phones
BenQ or Acer are in the box seat to snare a global contract to produce a sub $300 PDA phone for Microsoft.
The move is part of a plan by Microsoft to expand its share of the global OS (operating system) market for mobile devices, according to sources at Taiwan makers and vendors. Microsoft has already exchanged ideas about the potential project with its major partners in Taiwan, including High Tech Computer (HTC), Quanta Computer, Asustek Computer, Acer, Mitac International, and BenQ, with both BenQ and Acer being the prefered two suppliers. Most Taiwan makers generally support Microsoft’s plan to optimise its mobile operating system, but they said there still is a long way to go before the software vendor and local handset makers can jointly bring down overall production costs for PDA phones.
Jack Tong, president of own-brand handset vendor Dopod International, said that it is difficult for makers to drastically cut down their costs as the production of PDAs and smartphones can hardly reach a suitable economy of scale.
With consumers demanding more functions from PDA phones, it would probably take two years for makers to be able to roll out sub $300 PDA phones, contended Hwang Shan-rong, chairman of Taiwan-based PDA phone maker E-Ten Information Systems.
New 3G Phone Technology
Japanese electronics makers Matsushita Electric and NEC are in talks with Texas Instruments to create a joint venture to make chips for third-generation mobile telephones.
Advanced phones which let users exchange music and images and surf the Internet have come to dominate the market in Japan, the pioneering country for 3G.The two electric giants and the US chipmaker want to set up the new venture in Japan as early as this summer and develop chips for 3G phones both by Matsushita, best known for its Panasonic brand, and NEC, the Nihon Keizai business daily said.
The companies are expected to sign an agreement this month and will also provide parts to other phone producers inside and outside Japan, it said.The new venture will likely be capitalized at around 10 billion yen (85 million dollars), it added.”It’s true that the five companies are discussing possible cooperation in the area of third-generation mobile phones but nothing has been finalized yet,” said NEC spokesman Toshinori Arai.
Matsushita also released similar remarks. A spokesman for Texas Instruments declined to comment on the report. At the outset, NEC and Matsushita subsidiary Panasonic Mobile Communications (PMC) will each hold about 30 percent in the venture with the rest split equally between Matsushita, TI and NEC semiconductor subsidiary NEC Electronics, the Nihon Keizai said.
EXCLUSIVE: Breville Axes Senior Management
Breville who are witnessing major growth in the US market, have started to axe staff in their domestic operations.
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