Who is in the red and who is counting the cash asks Tech Sunday as it pores over October’s balance sheet.
Diamonds are forever
For decades, De Beers has held a strong worldwide monopoly on the supply of natural diamonds. However, it has now acknowledged that the market for synthetic diamonds is growing and it is therefore aiming to conquer a huge chunk of it.
Synthetic diamonds, which are created using a process originally invented in Russia, are cheap to buy. However, when used in computer chips, their value soars – diamonds are the best thermal conductor on the planet and diamond microchips have the capacity to make microprocessors 10 to 20 times faster than current speeds.
To lead the synthetic diamond market, De Beers is investing heavily in technology, spending tens of millions of dollars in several company portfolios and a VC shop in Silicon Valley.
Game over?
Japanese video game giant Nintendo is expected to make a pre-tax loss of more than €900m for the last six months of 2011. Following news of this loss, Nintendo shares tumbled as much as 7.5 per cent.
After years of dominating the video game market with its DS handheld and Wii home consoles, Nintendo has failed to attract enough buyers and popularity for its 3DS console. This is because gaming patterns are rapidly changing as casual gamers are turning to tablets, smartphones and apps for their daily dose of gaming.
The fall and rise of Nokia
Contrary to all forecasts, Nokia has sold 107 million handsets in the third quarter of the year. This boost in sales is fuelled by the strong demand in China and India for Nokia’s dual-sim phones, which can be used to separate personal and business calls.
The good news follows the Finnish giant’s sharp decline in market share in the past months – Nokia saw its worldwide market share fall from 35 per cent at the beginning of 2010 to 25 per cent this summer. Its European market share fell from 33 per cent to 21 per cent.
Nokia is also hoping that its first Nokia phones running with a Microsoft operating system will help it make one of the greatest turnarounds in the history of technology.
More than an Apple a day
Apple has sold more than four million iPhone 4S smartphones in the first three days of its launch. If sales continue at this rate, then the iPhone 4S will probably set the record for the world’s fastest selling consumer electronics gadget.
If the new iPhone doesn’t manage to set this record, Apple executives will probably not worry too much, as the record is still held by an Apple product – the iPad 2 sold at least 156,000 units per day during its first 80 days. This is yet another proof of Apple’s growing mass appeal – in fact, its revenues have risen 67 per cent since 2010 and to date has sold nearly 29 million iPhones and 17 million iPads in the final quarter of its financial year. Rumours have already started that the iPad 3 will be launched in January 2012.
Global financial services firm Morgan Stanley has predicted that by the end of 2012, Apple’s cash reserves will grow to $136 billion.