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The most accurate predictive letter in computing and telecommunications,
read by industry leaders worldwide.

 

 

 

In This Issue     Feature: Seeking Margins   The Margin Game: Winner Takes All? Margin Effects on Hewlett-Packard Taiwan: The Ultimate Margin Broker? Steve Jobs: Staying Out of China, Keeping Up Margins Huawei and Cisco, Huawei and Motorola Questioning Margins   Quotes of the Week   Ethermail   Upgrades   Ending Short Selling   Takeout Window   Resonance Theory: Dark Matter? 2 Companies Fighting a Recession and Low Margins China TV Slips SNS Opportunities and Licenses   In Other House News   New Members' Welcome SNS Positions Open How to Subscribe May I Share This Newsletter? About SNS About the Publisher Where's Mark?

 

I am very pleased to be able to announce that our Centerpiece Conversation at the 7th annual SNS Predictions Dinner, New York, will be with member:

 

Robert Hormats, Under Secretary of State for Economic, Energy and Agricultural Affairs, on the subject:

 

"How Intellectual Property Drives the Global Economy."

 

Those of you who have been tuned in to Secretary Clinton's comments on Protecting IP will want to talk with Bob and get his personal read on their recent travels to China.

 

We will also have an additional (returning) special guest with us:

 

Richard Marshall, Director of Global Cyber Security Management, Department of Homeland Security, to help us continue our conversation on security.

 

Registration is now open for the SNS Annual Predictions Dinner, December 8, 2011, at the historic Waldorf=Astoria Hotel: www.stratnews.com/newyork/2011.

 

If you'd like to be more involved in this event as one of our select sponsors, please contact Sharon at: sam@stratnews.com or 435-649-3645.

 

 

 

 

Seeking Margins

 

What if profits didn't matter?

 

What if profits per quarter were all that mattered?

 

Now, who gets to make the next device?

 

» The Margin Game: Winner Takes All?

 

Let's say you're driven by quarterly financial reports to your shareholders; that is, you are a normal European or Western company acting under GAAP accounting rules. This means your income sheet had better show increased operating margins, driven by higher revenues and/or decreased operating costs, or their equivalent. Where do you turn?

 

Many companies have made the mistake of turning to mercantilist nations (such as Japan, South Korea, Taiwan, or China) for cheap manufacturing or assembly, thinking they can maintain the "secret sauce" that differentiates their products. Many others have moved operations to these countries in return for promised market access.