Consumer Technology World Brief
It was thought that 3D printing would be just a passing fad where the novelty of being able to design a product and have it printed immediately would diminish after a while but advancement in 3D machining today definitely proves otherwise. Many manufacturers already use 3D printing to make prototypes of parts, because it is cheaper and more flexible than tooling up to produce just one or two items. But the technology is now good enough for it to be used to make production items too. GE Aviation buying into Morris Technologies is definitely one to watch out due to the highly specialized nature of 3D machining and it is clear that GE plans to use these 3D components in real world applications. This could be the start of a truly revolutionary process.
In the mobile world, Apple has indeed not let up on its war against other smartphone manufacturers (mainly Samsung) and now it plans to add the newly released Samsung Galaxy Note 2 into its ongoing patent suit(s). The Samsung Galaxy Note 2 has managed to obtain sales figure of 5 million units within 2 months of its release.
A clear shift of power balance can be seen as the era of Japanese consumer electronics giants is dying due to competition from US, South Korea and China. Companies such as Sony, Panasonic and Sharp are facing difficulties as they have failed to adapt to the growing trends as fast as their rivals which has left them having to play catch up with the rest of the industry. Among the three fallen giants, Sharp has deflated the most. The company earlier this month reported a loss of 387.6 billion Yen ($4.87 billion) in the six months ended September 30, a near tenfold increase over the year-earlier period. The company was already in the middle of a restructuring, having cut more than 10,000 jobs and looking to sell manufacturing plants to Foxconn, and insisted that those efforts would help generate cash flow.
Rather than consumer products, Sony and Sharp have found some headroom supplying to other more popular companies. Sony, for instance, provides the camera for the iPhone, while Sharp is one of several display suppliers to Apple’s smartphone.
North America Review
November saw the world’s largest economy go to vote – the 2012 Presidential Elections. The months of debate, discussion and excitement ended on 6th November with the Democratic nominee, President Barack Obama, and his running mate, Vice President Joe Biden, elected to a second term. It is to be seen in the next few months if the extension of the term will result in a stabilization and potential growth of the economy.
The U.S. came out on top for the eighth straight quarter when investors were asked which markets will offer the best opportunities over the next year. Banking authorities have tightened rules and raised capital standards on banks after the worst financial crisis since the Great Depression forced governments to spend billions of dollars to rescue ailing financial institutions. The optimism on the world economy is based in part on an expectation that the U.S. will avert $607 billion in automatic spending cuts and tax increases scheduled for Jan. 1 which if not implemented will lead to a fiscal cliff. Economists warn that allowing the full impact of the fiscal cliff to occur would further slow an already sluggish recovery, while failure to address the deficit issue in a comprehensive way could bring another downgrade of the U.S. credit rating.
Asia Review
China is poised to be a huge player in the consumer electronics sector with Dell, Lenovo, Intel and Foxconn setting up large scale operations in China. It is projected that by the end of 2012, a fifth of all computers in the world will be manufactured in Chengdu, the ancient Sichuan capital of western China. With large plans and ambitions for Chengdu it is hoped that the bubble shall not burst when the cost of living becomes too high for companies to continue remaining there like how the dotcom bubble brought many people down to their knees when it burst.
China ushered in a new generation of leaders this month at the 18th Communist Party Congress in Beijing, with outgoing President Hu Jintao making a pointed reference to strengthening China’s naval forces, protecting maritime interests and the need to “win local war”. China is embroiled in disputes with the Philippines and Vietnam over South China Sea islands believed to be surrounded by waters rich in natural gas. It has a similar dispute with Japan over islands in the East China Sea. China is boosting military spending by 11.2 percent this year, bringing official outlays on the People’s Liberation Army to 670.3 billion Yuan ($100 billion) for 2012, after a 12.7 percent increase last year and a near-unbroken string of double-digit rises across two decades.
On the innovation forefront Japan has unveiled the new 310mph maglev trains which it plans to use by 2027 which is estimated to cut current travelling time to 50 minutes compared to conventional time of 90 minutes. The vehicle has no wheels – doing away with friction and, hence, providing a smoother and quieter ride at a faster speed – and is propelled along a track through electromagnetic pull. The maglev technology is hailed as the future-era technology which is less polluting and provides a more comfortable ride.
Europe Review
Eurozone governments could be forced to accept losses on their rescue loans to Greece after Monday’s late-night deal to overhaul its bailout failed to agree how to reach on new debt targets for the struggling country, according to documents seen by the Financial Times. After three gatherings in two weeks, Eurozone finance ministers agreed to release a long-delayed €34.4 billon aid payment to Athens. But the series of measures agreed, which could relieve Greece of billions of euros in debt by the end of the decade, do not go far enough.
German unemployment climbed for an eighth straight month in November as Europe’s debt crisis curbed company investment and economic growth. “It is doubtful whether private consumption can really take over the baton as the main growth driver for the German economy,” said Carsten Brzeski, an economist at ING Group in Brussels. “German unemployment looks set to increase further. This increase, however, should only be very mild, mainly located in the export industry.” “The German economy hasn’t grown very much recently as it confronts a difficult global economic environment,” said labor agency head Frank-Juergen Weise. “The demand for workers has fallen back a bit, although from a high level.”