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Analyst urges Apple to share wealth
A noted U.S. analyst is urging Apple Inc. AAPL-Q to get some of its billions in cash back to shareholders. The technology giant should do this by buying back $30-billion (U.S.) in stock while setting a 4-per-cent annual dividend, Tony Sacconaghi of Sanford C. Bernstein said in a report today, according to Bloomberg News. "One common and growing source of investor frustration has been the company's unwillingness to return any part of its burgeoning $46-billion cash balance," he said in a report penned as an open letter to chief executive officer Steve Jobs, noting how well Apple has done for its shareholders already but citing the position as a "common and growing source of investor frustration."
An Apple spokesman told Bloomberg that “we have maintained our cash and strong balance sheet to preserve the flexibility to make strategic investments and, or acquisitions."
India warns on BlackBerry
The Indian government today warned it would shut down two BlackBerry services if it does not get access to encrypted data by the end of this month. India's Ministry of Home Affairs said in a statement today that the home secretary met with the country's security and telecom authorities and set the deadline.
"The meeting asked the Telecom Department to convey to service providers that two BlackBerry services, namely Business Enterprises Services and Messenger Services, be made accessible to Law Enforcement Agencies by 31st August, 2010," the statement said. "If a technical solution is not provided by 31st August, 2010, the Government will review the position and take steps to block these two services from the network."
Research In Motion Ltd. RIM-T has been tussling with several governments over access to such data.
Android operating system surges
Research In Motion Ltd. RIM-T is holding its own in the ultracompetitive and lucrative smart phone market, but Google Inc. GOOG-Q is coming on strong with its Android operating system, based on fresh numbers today. RIM sales of the BlackBerry reached 11.2 million units in the second quarter of the year, confirming its standing as the fourth-largest branch with 3.4 per cent of the market for mobile devices, up from 2.7 per cent a year earlier, according to Gartner Inc., the global research and consulting firm. RIM trails the traditional heavyweights of the mobile market, Nokia, Samsung and LG, which command far larger positions.
Here’s where it gets interesting, and somewhat more competitive: In the market for smart phone operating systems, RIM is No. 2, its share of the market slipping to 18.2 per cent from 19 per cent, Gartner said. While the iOS from Apple Inc. AAPL-Q edged up to 14.2 per cent from 13 per cent, Google’s Android surged to grab 17.2 per cent of the market from just 1.8 per cent a year earlier. Noteworthy is that Android overtook RIM in the United States. “A non-exclusive strategy that produces products selling across many communication service providers (CSPs), and the backing of so many device manufacturers, which are bringing more attractive devices to market at several different price points, were among the factors that yielded its growth this quarter,” said research vice-president Carolina Milanesi.
RIM recently unveiled its new Torch BlackBerry, which has a touch screen and slide-out keyboard. “We believe the Torch's form factor will still appeal more to business users than to consumers and will stop many loyal BlackBerry users defecting to other platforms, but it won't attract many new users to the brand,” Gartner said in its report.
