Advertisements

Apple’s Big Growth Driver: China

Westlake Apple Store, Hangzhou, China

Daisuke Wakabayashi reports: The biggest growth driver at Apple is not any single product. It’s China. 

The numbers are shocking. Apple’s revenue in greater China – defined by the company as China plus Hong Kong and Taiwan – rose 112% in the fiscal third quarter ended June. This means that growth is accelerating in China after a 71% increase in the previous quarter, which was considered something of a seasonally-inflated surge because it encompassed the Chinese Lunar New Year, a peak shopping period in the country.

“The macro picture looks fantastic. Maybe there are minor thunderstorms now and then, but that kind of goes with the territory. We’re just getting started there.”

— Apple Chief Executive Tim Cook

Apple Chief Executive Tim Cook said he expects China to become the company’s biggest market at some point in the future. It appears that future is fast approaching. (Apple’s biggest market now is the Americas where revenue was $20.2 billion compared to $13.2 billion for Greater China, but revenue in the company’s home market grew a more pedestrian 15%.)

apple-tim-cook-china-mobile

“China is a fantastic geography with an incredible unprecedented level of opportunity there. And we’re going to be there.”

— Cook, in a conference call with analysts

A growing reliance on the Chinese market does expose Apple to concerns about China’s economy, exacerbated by the recent pullback in the Shanghai stock market. On Wednesday, Cowen & Co. analyst Timothy Acuri downgraded Apple’s stock to a “market perform” in part because he said he saw lower-than-expected iPhone sales as a cause for concern due to mounting evidence of “a widespread demand reset from China.”

Cook said the company’s bullish view about China’s future remains unchanged. He said it is still planning to increase the number of Apple stores in China to 40 by mid-2016 from 22 currently. Read the rest of this entry »

Advertisements

Euphoria in Iran as U.S. Accepts Defeat

celebrate-nuke-deal

” The Middle East has just become far more dangerous than it was a day ago. And the Obama administration has no one to blame but itself.”

Dov Zakheim writes:

…President Obama says that the deal makes the world “safer and more secure.” But here is how the Iranian Mehr News Agency describes the outcome:

– Iran’s nuclear program that was unjustly introduced as a threat to global security will now be recognized as a field for international cooperation with other countries.

– Iran will be recognized by the U.N. as a country with nuclear technology and entitled to rights of peaceful nuclear program including enrichment and full fuel cycle.

– All economic and financial sanctions against Iran will be removed through a new Security Council resolution.

Unknown

“The lifting of restrictions ensures that Iran will be no further from achieving nuclear weapons status than it is today. Nothing has been rolled back. None of the initial Western demands, whether regarding enrichment, the number of centrifuges, the extent of inspections, or the timetable for lifting sanctions have been met.”

– All nuclear facilities in Iran will retain their activities. Contrary to the initial demands of the other side, none of the nuclear sites will be shut down.

– With the new UNSC resolution under article 25, in addition to article 41 on provisions related to removal of past sanctions, the treatment of UN Security Council toward Iran will also undergo a fundamental change.

iran-nuclear-talks-vienna-Jim-Bourg-AP-640x480

“Iran will now have access to the latest technology, to international trade, and, most important, to billions of dollars. Estimates of Tehran’s financial windfall range as high as $150 billion.”

– All nuclear facilities in Iran will retain their activities. Contrary to the initial demands of the other side, none of the nuclear sites will be shut down.

– The policy to prevent Iran’s enrichment activities failed. Iran will continue nuclear enrichment.

– Iran’s nuclear infrastructure will be preserved. No centrifuge will be destroy [sic] and research and development on all advanced centrifuges including IR-4, IR-5, IR-6 and IR-8 will continue.

– Arak heavy water reactor will remain as such. Any demands to return the facility to a light water reactor have been dismissed. The facility will be modernized and enjoy new additions through cooperating with owners of most advanced and secure world technologies.

euphoric-iran

“Even if the actual figures are no more than $50 billion, that sum is enough for Iran both to modernize its infrastructure and double, perhaps triple its financial support for terrorist activities, which currently is estimated to cost the Islamic Republic less than ten billions dollars.”

– Iran will enter global markets as a producer of nuclear products especially in the case of “enriched uranium” and “heavy water.” All sanctions and limitations against imports and exports of nuclear material will be annulled.

– All economic and financial sanctions in the fields of banking, oil, gas, petrochemicals, insurance, and transportation as imposed by the EU and the U.S. under the pretext of Iran’s nuclear program will be immediately lifted upon the implementation of the agreement.

“Clearly, from the Iranian perspective, this is one terrific deal.”

– Ban on Iran’s missile activities including ballistic missiles will be limited to missiles designed for nuclear weapons, of which the Islamic Republic has never been and will be after.

– Iran’s arms embargo will be lifted, replaced with some restrictions to be removed in 5 years.

– Ban on purchasing sensitive dual-use items will be lifted and Iran’s needs will be met more easily through Iran and 5+1 joint commission.

– Billions of Iran’s blocked revenues in foreign banks will be unfrozen.

– A total of 800 individuals and legal entities, including the Central Bank of Iran (CBI), the Islamic Republic of Iran Shipping Lines and the National Iranian Oil Company (NIOC), will be released from any sanctions.

Clearly, from the Iranian perspective, this is one terrific deal.

What about from the Western perspective? The lifting of restrictions ensures that Iran will be no further from achieving nuclear weapons status than it is today. Nothing has been rolled back. None of the initial Western demands, whether regarding enrichment, the number of centrifuges, the extent of inspections, or the timetable for lifting sanctions have been met. Iran will now have access to the latest technology, to international trade, and, most important, to billions of dollars. Estimates of Tehran’s financial windfall range as high as $150 billion. Even if the actual figures are no more than $50 billion, that sum is enough for Iran both to modernize its infrastructure and double, perhaps triple its financial support for terrorist activities, which currently is estimated to cost the Islamic Republic less than ten billions dollars. The prospects for a peaceful outcome in Syria, or Yemen have diminished markedly. Hezbollah’s fortunes have skyrocketed. And the threat to Bahrain and Saudi Arabia’s Eastern Province has become far more ominous. Read the rest of this entry »


‘Dwarf Village’: A Shining Example of North Korea’s Spectacular Human Rights Record

nork

Little people sterilized, forced to live in remote area

TOKYO –   reports: The abuse of North Koreans who have dwarfism, a genetic condition that produces short bodies and disproportionate limbs, is the latest disclosure of widespread human rights abuses within the country. A U.N. commission report a year ago charged the regime with “crimes against humanity.”

Several North Korean defectors disclosed the existence of the village, called Yeonha-Ri, and said it is located in Kimhyongjik County, a border region in northeastern Ryanggang Province. The province is named after North Korea’s founding dictator Kim Il-Sung’s father, Kim Hyong-Jik.

“It is tempting to see the treatment of little people as evidence of the revolutionary state’s obsession with the purity of the race…”

Dwarfs are persecuted by the regime under a policy that combines Korean superstitions about physical deformities manifesting from personal or ancestral sin, and the hardline communist regime’s demand that all citizens must work, according to North Korean defectors.

“…But when you consider that Kim Il-Sung himself had a goiter the size of a fist on his neck that didn’t appear to disqualify him from leadership, I fear we have to look for other explanations.”

— Michael Breen, a Seoul-based specialist on North Korea

As part of the anti-dwarf measures, all people under 120 centimeters in height, or just under four feet, have been forced to relocate to the farming village at Yeonha-Ri.

One defector, who disclosed details of the village on condition of anonymity, said the North Korean government originally planned to exterminate the dwarfs as part of a policy of eliminating those within the population with undesirable physical traits. But concerns about international reaction to the population “cleansing” instead resulted in allowing the dwarfs to set up the farming village.

“I think that in this case…the nanny state in its zeal for social engineering is simply expressing the harsh and superstitious culture that it derives from.”

The goal of the separation is to prevent the dwarfs from marrying and reproducing. To that end, they are forced to undergo sterilization.

Also, North Korean dwarfs face a greater risk of starvation because they are not given the same food rations as other North Koreas.

Travel is also restricted under the dubious claim that as little people the dwarfs could be crushed while riding on crowded train cars.

The defector said stories related to the village include reports that during some of North Korea’s frequent famines, women would move in with Yeonha-Ri’s men who had reputations for being resourceful and good providers.

Michael Breen, a Seoul-based specialist on North Korea, said the treatment of the dwarfs is typical of the systematic abuse of human rights in the country. Read the rest of this entry »