These are stories Report on Business is following today. Get the top business stories through the day on BlackBerry or iPhone by bookmarking our mobile-friendly webpage.
Apple surges past RIM Apple Inc. has overtaken Research In Motion Ltd. in the heated smart phone battle. And notably, Nokia Corp. is slipping.
According to new research by International Data Corp., shipments of Apple's popular iPhone eclipsed those of RIM's BlackBerry in the third quarter for the first time, 14.1 million to 12.4 million. Apple's share of the market surged to 4.1 per cent in the quarter from 2.5 per cent a year earlier, IDC said.
RIM's no slouch, though. While it trailed Apple, its share of the market jumped to 3.6 per cent from 2.9 per cent and marked a quarter with a record number of shipments.
"The BlackBerry maker continues to grow in Latin America, for example, due to the success of the Curve 8520 entry-level model, which has helped drive growth in most emerging markets," IDC said. "The vendor's results were also boosted by the introduction of the higher-cost Torch in the United States, a key market due to the size and intensity of competition."
Of Apple, IDC said that "the company's record shipment performance can be attributed to the introducation of the iPhone 4 in 17 new countries last quarter. The record performance came despite 'Antennagate,' the name used to describe the controversy around alleged iPhone reception problems, in July."
Apple, RIM and Google Inc. have been in an incredibly fast-paced race amid competition involving the iPhone, BlackBerry and models using Google's Android system, in a market that's growing dramatically.
"Apple, RIM, and the vendors producing Android-based smart phones have put noticeable pressure on Nokia, the overall market leader," IDC said, reporting that Nokia's market share slipped to 32.4 per cent from 36.5 per cent amid tepid growth in shipments.
Canada's economy rebounds Canada's economy rebounded in August, following a down month in July, driven largely by the energy sector, though also by manufacturing.
Real gross domestic product expanded by 0.3 per cent, following the 0.1-per-cent dip in July, Statistics Canada said today. That matches the expectations of economists.
The oil and gas industries bounced back by 1.5 per cent, the federal statistics gathering agency said, with production of both climbing. Manufacturing, which has been hit by both a strong Canadian dollar and the recession, rebounded 0.5 per cent, though just 13 of 21 groups rose.
"Along with continued headwinds from abroad, the high level of household debt suggest that the Canadian consumer cannot continue to be the same driving force for economic growth as it was over the last year of economic recovery," said Toronto-Dominion Bank economist Diana Petramala.
"This will be most evident in the housing sector, where we expect residential investment to act as a drag on economic growth through the rest of this year and 2011.
"Given the great amount of uncertainty around the global economic outlook, it is likely that the volatility in economic growth seen over the last few months will persist. And, on average we anticipate economic growth to move at a snail's pace over the next year with quarterly gains in the range of 1.5 per cent to 2 per cent. At this rate, this Canadian economic recovery will be the slowest on record."
U.S. economy struggles The United States also released GDP data today that showed an economy still struggling, one that's still not strong enough to get people back to work in meaningful numbers.
Hurt by a still embattled housing industry, the U.S. economy expanded at a modest annual rate of 2 per cent in the third quarter, the Commerce Department said. That's marginally better than the 1.7-per-cent growth in GDP in the second quarter, but it's not enough to bring down a high unemployment rate.
Not only is today's reading the last before the Federal Reserve meets next week, when it's expected to unveil new stimulus measures, it's also the last of the major economic reports before the U.S. midterm elections next Tuesday.
The U.S. central bank is expected to unveil a fresh round of quantitative easing, dubbed QE2, when its two-day meeting ends on Wednesday. Investors have been speculating on the size and scope of those measures, speculation that has roiled stock and currency markets.
"There are two ways to look at the current reading of U.S. real GDP," said Toronto-Dominion Bank senior economist James Marple.
"On the one hand, growth continues to be positive and the level of GDP is now 3.5 per cent above the bottom reached in the second quarter of 2009. On the other hand, with a growth just below 2 per cent over the past two quarters, the unemployment rate has remained frozen at 9.6 per cent and core inflation has trended further below 1 per cent (reaching 0.79 per cent in September).
"With little ambiguity, the other hand wins the day - from the point of view of the Federal Reserve, continued high unemployment and low inflation are unacceptable outcomes, demanding more in the way of monetary stimulus to help boost the recovery."
Added senior economist Jennifer Lee of BMO Nesbitt Burns: "The U.S. data do not change the view that there will be action by the Fed when they meet next week ... the only question is will it be a 'shock and awe' effect, or a 'Wha? Ah!' response."
What did October look like? As Douglas Porter puts it today, who's afraid of October?
"With just one session to go in the month (where does the time go?), the TSX is up 1.6 per cent after the solid 3.8-per-cent gain in scary September, and possibly headed for its fourth monthly advance in a row," the deputy chief economist of BMO Nesbitt Burns said in a research note. "So, as we head into what has traditionally been the most favourable part of the calendar for equities, the TSX is up almost 7 per cent so far this year, leaving it with an above-average gain for the year to-date.
"Similarly, the S&P 500 has also managed a gain of just over 6 per cent so far in 2010, despite a nasty spring/summer correction and despite the relentless wave of doom-and-gloom surrounding the U.S. economy. Of course, the S&P 500 has been paced by the massive 8.8-er-cent pop in September, and is working on a 3.7-per-cent gain so far in October. If it hangs on today, the S&P 500 will thus have turned in its second best September-October combo in the post-war era (just trailing 1998)."
Japan continues to suffer Japan's economic fortunes are sinking further, based on several bits of data released today. Industrial production fell in September for the fourth consecutive month, slipping by 1.9 per cent from a month earlier. Household spending was flat and the construction sector softened.
Core consumer prices, which exclude out volatile measures, fell by 0.6 per cent from a year earlier. That was the 22nd month in a row of declines.
The country's jobless rate, however, slipped to 5 per cent from 5.1 per cent.
Analyst upgrades Potash, Agrium UBS Securities Canada has raised its outlook for stocks of Potash Corp. of Saskatchewan and Agrium Inc. .
Yesterday, Potash Corp. reported stellar earnings, and Agrium reports next week. Potash, of course, is also the target of a hostile takeover bid by BHP Billiton Ltd. and now the focus of heated debates over whether to protect the Canadian resource giant from a foreign bid.
UBS analyst Brian McArthur said in a research note today that the granular potash market in North America has become "very tight" recently, leading to two sharp increases in prices.
He raised his 12-month price target on Potash stock to $175 (U.S.) from $170, and on Agrium to $97 from $95.
From today's Report on Business
- Gold miners ride new infatuation to higher profits
- Maple Leaf restructuring put in doubt
- Adhocracy: Companies that campaign against themselves
- Canadian banks start to loosen purse strings