Banking on Apple

According to a report from Thomson Reuters,  Apple is now worth as much as the 32 biggest Eurozone banks.

This is a consequence of the steep fall in the share price of many of Europe’s leading banks last week, which is in stark contrast to the steady rise in Apple’s valuation.  Apple’s market capitalisation has soared to $340 billion on the back of the success of innovative technology products like iPods, iPhones and iPads.

Since peaking in May 2007 the Eurozone banks have lost three-quarters of their value.

For those who care to pick up on it, there is also a clear message here as to the value and payback of investing in branding and innovation strategies that respect and connect with the multi-layered aspirations of consumers.  Apple has built a reputation and loyalty by providing products that  opened up new possibilities for their customers.  Banks blew their brand reputation in the financial meltdown of 2007 and have continued to enact a mismatch between what they promise and what they deliver.  The results speak for themselves.

 

STOP PRESS STOP PRESS

Apple’s Board of Directors today announced that Steve Jobs has resigned as Chief Executive Officer, and the Board has named Tim Cook, previously Apple’s Chief Operating Officer, as the company’s new CEO. Jobs has been elected Chairman of the Board and Cook will join the Board, effective immediately.

 

Google to acquire smartphone manufacturer

The announcement yesterday that Google is to buy out Motorola Mobility for $12.5 billion means that competition in the smartphone market is about to get a lot more intense.

Google will now be in control of producing its own smartphone hardware to match its Android operating system.  This perhaps puts them on more of a level playing field in competing with Apple’s iPhone. And as many of Motorola Mobility’s phones already use Android, it would seem to be an ideal match?

However, the deal could leave other smartphone companies who currently use the Android operating system a little nervous as to where they will stand in the pecking order, particularly when it comes to having access to the latest versions and updates of the Android operating system.

Arguably, it has been the array of handset manufacturers who have got behind Android that has helped it take  the number one position from Apple in the smartphone market.  But this position could be lost if handset manufacturers decide to spread their risk by also embracing Microsoft’s new smartphone operating software.

What is certain is that the smartphone market is going to get more interesting and competitive, especially if rumours that Apple are likely to release an iPhone 4S targeting a lower price point.  This would appeal to the pay-as-you-go market, which could open up huge new markets, particularly in countries such as China.