Consumer Technology World Brief
Samsung has released the Galaxy Gear a smart watch which on its own has quite an impressive amount of technology squeezed into the form factor of a watch. It has 1.6-inch touchscreen, 4 gigabytes of storage, 24 hours of battery life, a 1.9 megapixel camera, a speaker and a microphone. Samsung essentially shrunk a smartphone down until it was functional as a wristwatch. But the Galaxy Gear isn’t a replacement for a smartphone. In fact, you still need a smartphone or tablet to use most of the smart watch’s features. Complicating matters further, the Galaxy Gear currently works with just two devices: the Samsung Galaxy Note 3 and the latest edition of the Galaxy Note 10.1. Not included is Samsung’s wildly popular Galaxy S smartphone series, though Samsung has hinted that those devices might be supported in the future. However its functionality is still lacking as for most people it’s still easier to access your phone then to use a proxy device. Ultimately the gear doesn’t do enough that a smartphone can’t.
BlackBerry has been on a downward trend in recent times. Its failure to adapt and roll out new product offering in competition with Android and iPhone platforms has been its major downfall. The company is laying off approximately 4,500 of its employee by year end. Its current client base is also switching from its product to other alternatives such as Google and Android devices. BlackBerry also said consumers are looking for devices with the largest number of apps. That’s definitely not BlackBerry’s forte. Making matters even worse, BlackBerry said that its core base of corporate customers are also now looking towards greener pastures. Long delays in the BlackBerry 10 platform have angered corporate IT departments, which like to deploy new BlackBerry phones and software together. Its new BB10 platform was also not successful due to late entry into the market which lead to a USD 965 million loss. The company also said that uncertainty surrounding its ongoing “strategic review” impacted demand for BlackBerry smartphones. The current strategic review will be a decider in the future of the company.
North America Review
Much of the government has been shut down — hundreds of thousands of workers furloughed, national parks closed, and programs for anything from child care to space exploration shuttered — for four days and it’s likely to remain closed for several days if not weeks more, House Republicans concede. Despite public pressure to reach a resolution — and public promises they want to, if only the other side would give in — Washington politicians remained at odds Friday. And there’s little indication there will be any breakthrough until at least mid-October, when the next economic crisis comes up over whether Congress gives the federal government the OK to increase how much it can borrow, or else default on its debt. The Treasury says the government is set to run out of money to cover it’s roughly USD 16.7 trillion debt on October 17, requiring an increase in the amount it can borrow.
The U.S. government on Wednesday scrambled to add computer capacity to handle an unexpectedly large number of Americans logging onto new online insurance marketplaces created under President Barack Obama’s healthcare reform law. Technical glitches and heavy traffic slowed Tuesday’s launch of the marketplaces, particularly for the federal Healthcare.gov website serving 36 states.Administration officials said they expected bumps and glitches as the national program to provide benefits to millions of uninsured Americans rolls out under the 2010 Patient Protection and Affordable Care Act, commonly known as Obamacare. Officials and organizers were elated by the large numbers as a sign of the demand for the new insurance plans, which will be open for enrollment through March 31. But they predicted actual enrollment would pick up slowly and probably peak in early 2014.
Asia Review
A beefed-up vehicle warranty law that takes effect in China on Tuesday is unlikely to burden global automakers, but will likely raise costs for smaller local players that may add to pressure for eventual consolidation in China’s fragmented car industry. The new “lemon law” gives Chinese consumers nearly as much protection as enjoyed by their counterparts in the United States to obtain free repair of faults or replacement of defective vehicles. Big global manufacturers such as General Motors Corp or Toyota Motor Corp are well-equipped to take the regulations, which are no more stringent than those they already face in their home or international markets, in their strides. China has more than 70 registered automakers, most competing for just a thin sliver of the world’s biggest car market. Many are already feeling the pressure from a slowing economy and tougher fuel economy requirements due to be implemented.
The launch of a Shanghai free trade zone heralds a new chapter in China’s drive to promote the yuan currency but it is unlikely to pose a competitive threat to Hong Kong any time soon and could instead provide more opportunities in the former British colony. Underpinned by its strong rule of law and freedoms under the “one country, two systems” formula since it was handed over to China 16 years ago, Hong Kong is a long-time beneficiary of preferential economic policies. It is China’s designated global offshore yuan center and is seen as a gateway to the world’s second-largest economy. While the launch of the 29 sq km Shanghai zone has stoked debate from tycoons to taxi drivers as to whether this could be a turning point for the fortunes of the former British territory, market watchers expect little impact for now. Shanghai’s initiative, however, will force Hong Kong to look more closely at the competitiveness of its massive financial services sector as costs soar and its business from China slows, as well as the pricing of its financial services.
Europe Review
A return to growth last month for French and Italian companies buttressed a tentative economic recovery in Europe, where Britain and Germany continued to lead the way. Order books in euro zone businesses filled at a faster rate and job cuts slowed to a trickle in September, according to purchasing managers indexes (PMIs) that survey thousands of companies worldwide. In Italy, the strength of the services PMI surpassed all expectations from suggesting the euro zone’s third-biggest economy was on course to pull out of its longest recession in six decades. The main disappointment in Europe was Spain, where a rise in business activity during August – the first in more than two years – proved short-lived as firms slipped back into decline. Financial markets were little changed on the data, taking their direction instead from the U.S. budget crisis that sent the dollar to an eight-month low Thursday as the government shutdown there dragged on.
European Union state aid regulators approved on Wednesday 20.5 million euros ($27.73 million) in French support for carmaker Renault to develop a diesel hybrid technology which will cut diesel use and carbon dioxide emissions for vans. The European Commission said the French state aid, which consisted of 3.8 million euros in grants, 3.4 million euros for industrial research and 13.1 million euros for experimental development, was in line with EU rules. This project should result in a substantial reduction in (vehicles’) fuel consumption and carbon dioxide emissions, thereby contributing to the EU’s targets for innovation, the environment and energy security, without affecting competition.