Business and Financial News 3
Overall, Borrell Associates predicts that US ad spend for new cars will rise to a total of $19.2 billion from the low of $18.4 billion in 2009, experiencing a 4% growth rate across all media. These numbers represent declines from 2008 spending, following a precipitous drop in automotive ad spend of 31% in the first half of 2009, during which Chrysler and GM declared bankruptcy and the recession forced a significant decline in new auto sales.
| US Total Local Ad Spend For New Cars | |
| Year | Ad Spend (Billion $) |
| 2008 |
$22.1 B |
| 2009 |
18.4 |
| 2010 |
19.2 |
| Source: Borrell Associates, Auto Ad Outlook, November 2009 | |
Online ad spend, says the report, which grew only 5.2% in 2009, will likely surpass all other media for new-vehicle advertising next year, driven by email, social networking and especially streaming audio and video campaigns, which will grow significantly.
Borrell says in the report that "Revenue from display banners, pop-ups and classified listings is dropping 20% this year, while spending by auto marketers on email and social networking campaigns is growing by 20%; a cross-over is expected next year, but it is streaming audio and video that will show the most growth this year and is positioning itself for "break-out" growth in 2010."
In assessing the impact on other media, the report shows that newspapers (-28.5%) and broadcast TV (-22.8%) have been hit the hardest this year, though they are expected to experience slight recovery in 2010, growing 3.8% year-over-year in 2010, while broadcast TV will rise 1.9%. Directories, (-8.1%) and other print media (-0.5%) will continue to see negative growth in 2010. Though a relatively small piece of auto advertising, cinema advertising is expected to experience the highest growth rate, 18%, and rise from $65 million this year to $77 million in 2010.
| Projected 2009 New Vehicle Ad Spending, by Media Choice (All Projections in $ Millions) | |||
|
Ad Spending by Revenue Source |
|||
| Media Choice | Dealers | Dealer Associations | Auto Manufacturers |
| Newspapers |
$20.43 |
$4.29 |
$14.72 |
| Other Print |
$4.32 |
$1.38 |
$9.18 |
| Directories |
$1.05 |
$1.05 |
$0.74 |
| Broadcast TV |
$7.59 |
$12.47 |
$31.26 |
| Cable |
$4.71 |
$6.07 |
$2.31 |
| Radio |
$5.55 |
$2.54 |
$0.91 |
| Outdoor |
$1.06 |
$1.39 |
$1.39 |
| Cinema |
$0.82 |
$46.28 |
$0.89 |
| Direct Mail |
$17.55 |
$1.99 |
$1.72 |
| Online |
$8.20 |
$2.74 |
$41.77 |
| Telemarketing |
$1.11 |
na |
$1.60 |
| Source: Borrell Associates, November 2009 | |||
Citing a study from Northwood University for AutoTrader.com, Borrell notes that the increase in expected Internet spending is the result of the fact that the internet is the leading media driver of walk-in traffic. MediaBuyerPlanner added that, though most customers interviewed by Northwood University stated it was ads on the web that instigated their foot traffic, dealers themselves attributed 30% of foot traffic to the web, with the rest coming from newspapers, radio and direct mail,
Sanford C. Bernstein says smaller dealers are being squeezed out of the market by economies of scale, with only 20,000 dealers are left in the US. And, despite a difficult last few years, the report does point to additional signs of a marginal recovery and lasting change that will begin in 2010:
 | Dealerships are getting leaner and, as a result, cars sold per dealership are increasing. |
| Manufacturer co-op spending is turning the corner and will begin to rise. |
| Independent dealers are finding new sources of revenue. |
| Large dealers will continue to gain share in the used-car arena |
Borrell reports that in 2010 the dealer share of online ad spend will be 39.4%, the association share will be 9.2%, and the manufacturer share, including co-op spending, will account for 51.3% of all ad spending on new vehicles.
| Projected 2009 Per Vehicle New Car Ad Spending By Dealership Employee Range | ||||
| Dealership Employee Range | Ad $ per Vehicle Sold | Vehicles Sold | 2009 Ad $(Million) | Ad $ Share |
| Under 5 |
$500 |
53,980 |
$0.45 |
0.6% |
| 5 to 20 |
$548 |
134,870 |
$0.99 |
1.4% |
| 21 to 50 |
$530 |
1,348,350 |
$7.69 |
10.6% |
| 51 to 100 |
$440 |
3,454,380 |
$17.60 |
24.3% |
| 101 to 200 |
$425 |
2,188,810 |
$8.10 |
11.2% |
| 201 or More |
$400 |
9,695,780 |
$37.56 |
51.9% |
| Average/Total |
$427 |
16,876,170 |
$72.39 |
100% |
| Sources: NADA, 2009; Dun & Bradstreet, 2009; Borrell Associates, 2009 | ||||
General Motors announced in August that it planned to increase ad spend for the rest of 2009 and 2010, after having cut ad spend by 15% in 2008. GM is now the third-largest advertiser in the country, behind Procter & Gamble and Verizon
| Projected 2009 New Motor Vehicle Sales by Dealer Employee Range | |||||||
|
Employee Range |
|||||||
| Under 5 | 5 to 20 | 21 to 50 | 51 to 100 | 101 to 200 | 200or More | US New Car Totals/Averages | |
| New Car Dealership Locations |
120 |
60 |
90 |
90 |
30 |
600 |
990 |
| Average Cars Sold: 2009 Projection |
450 |
2,248 |
14,982 |
38,382 |
72,960 |
16,160 |
17,047 |
| Total Cars Sold: 2009 Projection |
53,980 |
134,870 |
1,348,350 |
3,454,380 |
2,188,810 |
9,695,780 |
16,876,170 |
| Projected New Car Sales Share |
0.3% |
0.8% |
8.0% |
20.5% |
13.0% |
57.5% |
100% |
| Sources: NADA, 2009; Dun & Bradstreet, 2009; Borrell Associates, 2009 | |||||||
For complete information and access to charts and graphs, please visit Borrell Associates here.
Farouk_Systems_to_hire_1277_this_year
July 30, 2009, Houston, TX – Farouk Systems is celebrating its Grand Opening and Ribbon Cutting Ceremony for CHI USA. The event will provide the public with a Job Fair, while enjoying a TX BBQ, entertainment and guest speakers including dignitaries and celebrities. Our guest invitees include President Barak Obama, Governor Rick Perry, U.S. Department of Labor Secretary Hilda Solis, Mayor Bill White, Senator Kay Bailey Hutchinson, Sylvester Stallone, Willie Nelson, Beyoncé Knowles and more.
Farouk Systems, Inc. is a Houston based company that manufactures the high quality professional hair care products - CHI and BioSilk. Farouk Shami, Founder and Chairman, is being awarded the Entrepreneur of the Year award by Former Speaker Newt Gingrich. This well deserved honor and award is due to Farouk making the decision to build CHI USA, a manufacturing facility that’s over 500,000 sq ft. that will employ over 1,000 people this year. The CHI Ceramic Iron will be the First ceramic flat iron ever to be “Made in the USA.” Furthermore, Farouk Systems raised the bar on its reputable high quality, Innovation and Advanced American Technology naming former NASA Senior Scientist, Dr. Dennis Morrison Senior VP of Technology.
With the economy taking a plunge, moving production from South Korea and China to the USA has been a major priority for Farouk Shami. According to the Labor Department, manufacturing accounted for more than a quarter of layoffs. Farouk is aware that manufacturing overseas has a significant cost advantage, but he’s certain he’ll be able to offset higher labor costs using tax breaks, eliminating import duties and marketing his products “Made in the USA.” "People want Made in the U.S.A. on the products they buy,” Shami said. “I want Made in the U.S.A.” Additionally, the Labor Department recently announced an unemployment rate of 9.4%. We know that the 1,000 new jobs we are creating this year will only put a small dent on the unemployment rate, but Farouk Systems is already estimating it will be hiring an additional 4,000 people within the next 3 to 4 years. Not to mention the “trickle down” effect this will have on American businesses i.e. the vendors we purchase millions of dollars worth of equipment and components from; the carriers that ship our products to more than 100 countries; the service men that maintain our equipment; the airlines that fly 2,000 plus executives, artists and educators around the world to do business, etc.
Farouk Shami adds, “Twenty-two years ago I opened the doors to Farouk Systems during a recession, and I still managed to build my empire. Today, this recession does not hold me back either, instead I’m honored to be opening a new set of doors that will bring back hope to thousands of American people. My mission is to inspire and challenge other manufacturers to follow our lead so that together we can stimulate the U.S. economy!”
The inception of Farouk Systems began in 1986 when Farouk Shami invented the first Ammonia-Free hair lightener and color system called SunGlitz®. The company started during the 80’s recession and later transformed into a powerhouse in the beauty industry. Farouk Systems introduced the use of natural “Silk” in hair care products called BioSilk Silk Therapy®. It pioneered Thermal Tool Technology when it created the CHI® iron becoming the first company to incorporate Ceramic, Ionic and Far Infrared into hair tools. Utilizing Advanced American Technology, the company created hair dryers with low EMF (Electromagnetic Fields) and hair tools with Nano Silver, which kills up to 650 forms of bacteria. Farouk Systems also introduced the first nail lacquer that eliminates harmful ingredients. CHI Nails is formulated with ceramic for durability, silk for a high-gloss finish and Nano Silver for the ultimate protection against bacteria.
ROCKETLIFE WINS TWO DIMA 2009
INNOVATIVE DIGITAL PRODUCT AWARDS
Wins Awards for RocketLife Touch & RocketLife Mobile
Folsom, CA – RocketLife (www.RocketLife.com),
the inventors of award-winning new media technologies, announced today that it
has won two DIMA 2009 Innovative Digital Product Awards
for RocketLife Touch™ and
RocketLife Mobile™. The awards were announced
on March 2nd at the Photo Marketing Association Show (PMA), held in
Las Vegas.
RocketLife Touch & RocketLife Mobile
RocketLife Touch is an exciting new photo creation and merchandising product for the next-generation touch screen experience for kiosks at retail sites, photo lounge kiosks, and touch screen computers. RocketLife Mobile revolutionizes the way people share photo experiences, bringing new patent-pending technologies, such as GPS, iPhone Express instant photo updates, 3D merchandising, and more to mobile devices so customers can instantly share, re-arrange, view and buy products real-time anywhere they go.
RocketLife Touch and RocketLife Mobile were chosen from hundreds of digital products on display at Sneak Peek 2009 during PMA. The award is sponsored by the Digital Imaging Marketing Association® (DIMA®), a PMA® member association in Jackson, Michigan. DIMA Innovative Digital Product Awards recognize products or services utilizing new technologies and/or applications that make the product either distinct or the first of its kind. The product or service must be available within 90 days of PMA 09 to qualify for the DIMA Innovative Digital Product Award. Winning products were selected by a panel of digital imaging editors to receive the prestigious DIMA Innovative Digital Product Award. The awards are given to products or services utilizing new technologies and/or applications that make the product either distinct or the first of its kind.
Companies were asked to submit entries for their product/service to allow a panel of industry press to evaluate the products and services for the DIMA Innovative Digital Product Awards. All entries were evaluated based on the following questions:
1: Why is this product/service considered innovative?
2: What sets this product/service apart from its competitors?
3: How does this product/service benefit its user?
“We are honored to win 2 prestigious DIMA Innovative Digital Product Awards for our ground-breaking RocketLife Touch and Mobile products,” said Michael Moore, CEO of RocketLife. “With these products, RocketLife provides a more personal ‘touch’ experience and interactive mobility options with instant results through RocketLife’s 3D Digital Merchandising technology.”
RocketLife Touch and RocketLife Mobile utilize patent-pending technologies, such as the ultra-fast import of hundreds of photos, multi-layered photo themes with new enhancements, Smart Arrangement Technology, and 3D Digital Merchandising, expanding RocketLife to a variety of new venues and environments for rich photo product creation, from stunning collage prints and posters to professional designed lay-flat photo books.
RocketLife Touch is available immediately for photo kiosks and computer touch screens. RocketLife Mobile will be available in Q2 initially for the iPhone. For more information, see www.RocketLife.com.
ABOUT ROCKETLIFE LLC
Personalized Technology Designed for the Customer
To take RocketLife for a spin, visit
www.RocketLife.com.
PASADENA, CA August 14, 2008 – Solid Cables™ has redefined instrument cable standards by officially releasing the Dynamic Arc Ultra™ to market. The Dynamic Arc Ultra™ cable is designed to be the toughest, best sounding cable in the world. Made for the musician with a critical ear and a desire for quality, holding these cables in your hands lets you know that Solid Cables™ stands behind exactly what their name implies.
"I am a cable fanatic and this is the very best, brightest, fullest and loudest one I’ve come across in all my travels…I was really blown away!” – Carl Verheyen
THE 2008 WESTERN FOODSERVICE & HOSPITALITY EXPO OPENS THIS WEEKEND
LOS ANGELES, CA AUGUST 19, 2008 – Starting this Saturday, August 23, 2008 the table is set for a feast of insights, ideas, and opportunities at the 2008 Western Foodservice & Hospitality Expo. The thousands of industry professionals who attend will be able to demo, touch, taste, smell, compare, and source the latest in products and services necessary for running a successful business. Among dozens of stories, here are the highlights:
| The Hot Spot Culinary Extravaganza, an interactive, and entertaining theatre featuring celebrity chefs and guest appearances to satisfy all. This year’s show brings Food Network Personality Guy Fieri; Restaurant Marketing Expert and Author Linda Duke; Top 10 Most Renowned New Chefs Taylor Boudreaux; Founder of Intermezzo Roseanne Tully; PBS Personality Tommy Tang; Italian Renowned Chef Leonardo Curti; Hell’s Kitchen Star Aaron Song; Kosher Caterer Jeff Stansfield; Culinary Artist Ray Duey; and Sugar Bowl Bakery Chef Kevin Ly. |
| New to this year’s line up, The LA Wine Expo brings the opportunity to sample wines from over 40 winemakers from around the globe, speak directly to the wine makers and other wine principles, and pick up tips on serving, pricing, and selecting the right vintage. |
| The Ultimate Barista Challenge brings professional baristi to the Expo to face challengers all preparing their signature espresso beverages for a panel of judges. The showdown will feature three flights of espresso frappe, espresso cocktails, and beautiful café latte art. Winners will be invited to compete in the Grand Finale in NYC in March 2009. |
| The Innovative New Product Gallery is the place to source new food, beverages, desserts, ingredients/condiments, equipment, environmental safety, technology, and solutions in the industry. Be among the voters by picking your favorites. On Monday afternoon, the Best in Show, First Runner Up, and Second Runner Up will be named. |
| The Second Annual Ferdinand Metz Foodservice Forum will feature industry experts handpicked by Master Chef and Head of the Culinary Institute of America for more than 20 years, Ferdinand Metz. These sessions provide restaurateurs the keys to success, new trends, increasing revenue & loyalty, lower costs & turnover, building winning teams, delivering optimal experience, enhancing menu, cuisine & profits, minimizing risks, and operational excellence. |
| Thai Cooking Theatre where attendees will learn from world-renowned chefs, including Tommy Tang. Thai and Fusion Cuisine has taken the world by storm and this theatre will provide restaurateurs all the necessary tools and information they need to participate in this quickly moving popular trend in the food industry. |
| Keynote Speakers include Nolan Bushnell, founder and former CEO of Atari Corporation and Chuck E. Cheese’s Pizza Time Theatre and CEO of uWink (OTCBB: UWKI), Mark Sanborn, best-selling author of The Fred Factor; and Ted Balestreri, owner of The Sardine Factory. |
WHEN: Saturday, August 23, 2008 10:00 am – 5:00 pm
Sunday, August 24, 2008 11:00 am – 5:00 pm
Monday, August 25, 2008 11:00 am – 4:00 pm
WHERE: The Los Angeles Convention Center, Los Angeles, CA
THE HOT SPOT CULINARY DEMONSTRATION THEATER BRINGS WORLD RENOWNED CHEFS TO THE WESTERN FOODSERVICE & HOSPITALITY EXPO
Eager to meet a Celebrity Chef? Want to learn the latest trends in cooking?
Maybe indulge your taste buds….the HOT SPOT will satisfy it all!
NORWALK, CT AUGUST 8, 2008 – The Hot Spot Culinary Demonstration Theater is an educational, interactive and entertaining area for foodservice professionals who want to stay abreast of what’s hot in the food world. This is a must attend event at the Western Foodservice & Hospitality Expo (August 23 through August 25, 2008) at the Los Angeles Convention Center.
The 2008 line up includes:
Saturday, August 23rd - 12:00 pm
Food Network Star, GUY FIERI. Are you ready for TV, interviews and the Food Network? Don’t miss Guy Fieri appearing LIVE at the Hot Spot! This Food Network star will give examples, tips and a roadmap to successfully market the chef, the menu and the restaurant. Public Relations Expert and Author Linda Duke, will moderate the event.
Saturday, August 23rd – 1:30 pm
Taylor Boudreaux, One of Los Angeles Magazine’s “Top 10 Most Renowned New Chefs” and a James Beard Foundation nominee for “Rising Star Chef of the Year” in 2004. As Executive Chef at California Café in downtown Los Gatos, Boudreaux has created a new menu for filled with organic and local produce accented by global flavors. Learn how to create magnificent dishes using food grown within 100 miles of your region.
Saturday, August 23rd – 3:00 pm
Roseanne Tully, CEO and Founder of Intermezzo, the nation’s fastest growing fine food, wine, home, and travel magazine, will share tips and techniques to simply fabulous dinners
Sunday, August 24th – 12:00 pm
Tommy Tang, celebrity chef and host of PBS’s “Let’s Get Cooking with Tommy Tang,” will create unique, delectable cuisine from his native Thailand.
Sunday, August 24th – 1:30 pm
Leonardo Curti, renowned Italian Chef, will take the audience on a culinary adventure into Italy and Central California’s Santa Ynez Valley while Chef Leonardo teaches simple recipes using readily available ingredients. Get swept away to the lush Italian countryside through Chef Leonardo’s authentic, mouth-watering cuisine.
Sunday, August 24th – 3:00 pm
Aaron Song from Fox televisions hit series, “Hell’s Kitchen” will heat up the HOT SPOT. A character on both Season 3 and Season 4, Aaron will offer his guide to eating smart, being fit and living well. A well-known spokesperson for Henry’s Farmer Market, Aaron will show how to incorporate Anti-Oxidants into everyday cooking.
Monday, August 25th – 11:30 am
Jeff Stansfield from Advantage Jewish Catering, will offer a delicious and informative demonstration about Kosher cooking
Monday, August 25th 1:00 pm
Ray Duey, world-renowned culinary artist, is nothing short of amazing when it comes to food sculpting. Working his magic on fruits and vegetables, he travels around the country, teaching the culinary art of fruit and vegetable carvings and leaving spectators and culinary professionals spellbound. Watch him work his magic!
The Western Foodservice & Hospitality Expo will bring 15,000+ foodservice industry professionals together. The Expo Hall will offer 650 companies showcasing products ranging from equipment to gourmet foods. The three day event will feature the 3rd annual Ultimate Barista Challenge where professional Baristas prepare their signature espresso beverages. The 1st annual Los Angeles Wine Expo will feature wines from over 40 winemakers from around the globe. The LA Wine Expo will be located in the same exhibit hall as the Western Foodservice & Hospitality Expo, and is open to all badged attendees on Saturday and Sunday only. View event details at www.winexpola.com
The Expo is produced and managed by Reed Exhibitions, and sponsored by the California Restaurant Association. For more information on exhibiting or attending the Expo, call 800-840-5612 or visit the official Show website at www.westernfoodexpo.com or www.thefoodshows.com.
Customers Can Now Go to One Site to Buy All Their High-End Natural and Organic Skin Care Products
SALT LAKE CITY---SkinBotanica.com, the largest all natural and organic skin care provider in the U.S., has announced the introduction of its easy-to-use online shopping experience. SkinBotanica brings many of the finest top-of-the-line skin care, body care, hair care and cosmetic product lines - representing over a thousand products, to consumers through its newly launched website.
“We are very selective regarding the product lines we carry and are careful to ensure that the products are effective and truly natural and organic. Not all of the product lines we evaluated have met our strict standards,” said Kristy Taylor, co-founder of SkinBotanica.com. “All Natural and Organic products aren’t meant to replace traditional skin care technologies, but rather give consumers equally-effective alternatives. Our carefully selected product lines are made from formulas that increase the skin’s natural processes of protection, repair and renewal and benefit every skin type.”
The SkinBotanica collection features products formulated with ingredients from natural sources, such as plants, flowers, fruits and vegetables. The cosmopolitan array of product lines hail from France, Australia, the United Kingdom and the Unites States; with ingredients and recipes from such diverse places as Romania, Paraguay, Brazil, Thailand, Indonesia and China.
The product lines are available at SkinBotanica.com, which provides an innovative and easy shopping system that allows cross site shopping between sister sites SkinCareRX.com and AnneMichele.com, resulting in a combined selection of over 5,000 high-end beauty products.
“Many of the SkinBotanica product lines are manufactured eco-friendly to ensure the highest quality and the least impact on the environment,” said Chris Taylor, co-founder of SkinBotanica.com. “Several product lines carry the USDA certified organic seal and provide a way, for example, to offer pregnant and nursing women high quality, natural and organic products that are free from detergents, chemical fragrances and other additives.”
Some of the more popular lines SkinBotanica.com carries are: 100% Pure, Akhassa, Alaska Glacial Mud Co.™, Aromafloria®, Biologica, Colorescience®, Deep Steep®, Doll Face™, Éminence©, Erbaviva, HAMADI™, Juice Beauty®, Juniper Ridge, Kathleen Lewis, Naturopathica®, Nufolia, Pangea Organics, Pharmacopia, Pure Fiji©, Red Flower, Ren, Sircuit® Skin, Sophyto™, Stem® Organics and Sumbody.
About SkinBotanica.com
SkinBotanica.com, the leader in natural and organic skin care, makes its skin care, body care, hair care and cosmetic product lines available to consumers through its easy-to-use online shopping experience. The site features products formulated with ingredients from natural sources, such as plants, flowers, fruits, and vegetables. SkinBotanica not only selects brands that are committed to healthy skin, but also a healthier environment through their production and packaging. The company also supports the environment with its own eco-friendly shipping materials.
Record setting industry sales meet environmentally-friendly trade show practices
BOULDER, Colo. (July 8, 2008) —More than 25,000 natural, organic and healthy products retailers, buyers, thought leaders and trend spotters will congregate in Boston, October 15–18 for the 24th annual Natural Products Expo East/Organic Products Expo -BioFach America (www.expoeast.com). The East Coast’s largest natural and organic products trade show—featuring products from more than 1,200 exhibiting companies—is moving to Boston in 2008 to accommodate growth, attendee preference and environmentally-friendly practices.
The growth of the trade show mirrors natural products industry sales, which reached $62.4 billion in 2007, according to The Natural Foods Merchandiser’s 2007 recently released Market Overview with the Northeast leading the way in natural products retailers’ sales. Products from the region will be highlighted at the show with the introduction of the “ New England ’s Best” category, in the 6th annual New Products Showcase Awards.
“With the move to Boston , we’re able to provide a venue for retail buyers and manufacturers to conduct business in a progressive city that is so important to natural products,” said Fred Linder, president of New Hope Natural Media.
For this year’s show, organizers are implementing a recognition program to encourage exhibiting companies to reduce their environmental impact at the show in the areas of waste reduction, travel offset and sustainable booth design. In keeping with this theme, organizers are also introducing a green press room utilizing a paperless method of distributing exhibitor press kits.
This year’s keynote will be delivered by Frances Moore Lappé, author of the bestselling Diet for a Small Planet and co-founder of the Institute for Food and Development Policy (Food First) and the Center for Living Democracy. Lappé will discuss her most recent book, Getting a Grip, and address how food is a central issue through which to understand world politics.
Editorial staff meeting press guidelines may attend the show free of charge. Register online at www.expoeast.com/media. This show is open to a professional audience of manufacturers, buyers, retailers, media and service providers. It is NOT open to the general public.
New Hope Natural Media (www.newhope.com), a division of the Penton Media, Inc., is the leading media resource and information provider for the natural, organic and healthy products industry with print, in-person/event, and e-business products and services. Penton Media, Inc. is the largest independent business-to-business media company in the U.S. , serving more than six million business professionals every month. The company’s market-leading brands are focused on 30 industries and include 113 trade magazines, 145 Web sites, 150 industry trade shows and conferences, and more than 500 information data products. Headquartered in New York City , the privately held company is owned by MidOcean Partners and U.S. Equity Partners II, an investment fund sponsored by Wasserstein & Co., LP, and its coinvestors. For additional information on the company and its businesses, visit www.penton.com.
AT&T Inc. (NYSE:T) today announced it will be the exclusive U.S. provider of the new iPhone 3G, details of which were outlined earlier today at Apple's Worldwide Developer's Conference in San Francisco.
Under the terms of a new agreement with Apple, AT&T remains the exclusive
U.S. carrier of the
iPhone 3G, which will be available beginning July 11 at a starting price of $199
with a two-year contract. The iPhone 3G boasts several significant enhancements,
including:
| 3G broadband wireless connectivity, which gives customers a home broadband-like speed experience when surfing the Internet, sharing files and using media-rich Web applications. |
| Business-class capabilities, including e-mail, viewed on a large, touch-screen device and designed to meet the needs of companies of all sizes. |
| The ability for developers, including AT&T, to create customized consumer and business applications using the Apple software developer's kit (SDK). |
Customers can get more information on the iPhone 3G at www.att.com/iphone.
AT&T expects that the iPhone 3G's attractive pricing and rich set of features including business e-mail and other applications, combined with the broadband speeds of AT&T's 3G network, will spur significant subscriber and revenue growth — particularly in wireless data — and strengthen AT&T's wireless leadership and long-term growth profile.
"The iPhone 3G will take mobile communications and computing to a whole new level by combining a terrific user interface with a great experience accessing the Internet and subscribers' favorite applications on our 3G wireless network at unsurpassed speeds," said Ralph de la Vega, president and chief executive officer of AT&T Mobility. "Combine our high-performance 3G broadband wireless network, the new iPhone's business-class capabilities and a starting price of $199, and I expect that we will continue to increase revenue per user and attract customers who spend the most on wireless. The device is built, and priced, to sell."
AT&T will sell iPhone 3G in more than 2,200 company-owned retail stores and kiosks, as well as through its direct business sales teams.
New Agreement With Apple Reflects Significant Growth Opportunity
The new agreement between Apple and AT&T eliminates the revenue-sharing model
under which AT&T shared a portion of monthly service revenue with Apple. Under
the revised agreement, which is consistent with traditional equipment
manufacturer-carrier arrangements, there is no revenue sharing and both
iPhone 3G models will be offered at attractive prices to broaden the market
potential and accelerate subscriber volumes. The phones will be offered with a
two-year contract and attractive data plans that are similar to those offered
for other smartphones and PDAs. AT&T anticipates that these offers will drive
increased sales volumes and revenues among high-quality, data-centric customers.
Currently, less than 20 percent of AT&T's postpaid subscribers have integrated
devices capable of voice, Web and data applications. Based on the company's
experience, average monthly revenues per iPhone subscriber are nearly double the
average of the company's overall subscriber base.
| With a two-year contract, the price of an 8GB iPhone 3G will be $199; the 16GB model will be priced at $299. |
| Unlimited iPhone 3G data plans for consumers will be available for $30 a month, in addition to voice plans starting at $39.99 a month. |
| Unlimited 3G data plans for business users will be available for $45 a month, in addition to a voice plan. |
In the near term, AT&T anticipates that the new agreement will likely result in some pressure on margins and earnings, reflecting the costs of subsidized device pricing, which, in turn, is expected to drive increased subscriber volumes. The company anticipates potential dilution to earnings per share (EPS) from this initiative in the $0.10 to $0.12 range this year and next, with a 2008 adjusted consolidated operating income margin of approximately 24 percent and a full-year 2008 wireless OIBDA margin in the 39-40 percent range. As recurring revenue streams build without any further revenue sharing required, AT&T expects the initiative to turn accretive in 2010.
AT&T's 3G Wireless Network
The iPhone 3G harnesses the power of AT&T's broad and powerful 3G mobile
broadband network, which offers 3G mobile phones download speeds of up to 1.4
Mbps. AT&T's 3G network is currently available in 280 leading U.S. metropolitan
areas; by year-end, the company plans to offer 3G service in nearly 350 metro
areas. Following the recent turndown of its TDMA network, the company is further
enhancing its 3G network, with improved coverage quality made available through
reallocated 850 MHz spectrum.
AT&T's 3G network is the best positioned among American carriers to grow in line with customer demand, evolving to next-generation speeds incrementally during the next few years. Between 2005 and the end of 2008, AT&T will have invested more than $20 billion in wireless network improvements and upgrades.
AT&T has the best global coverage of any provider, with voice-roaming available in more than 200 countries and data-roaming in more than 145 countries, including more 3G roaming than any other carrier.
In addition, the new iPhone 3G will operate in Wi-Fi mode through wireless modems in homes and offices, as well as public hot spots.
Marketing the iPhone to Businesses
iPhone 3G includes new business capabilities, including access to corporate
e-mail and intranets, as well as the ability to certify mobile business
applications to suit the needs of an array of industries, ranging from health
care and real estate to higher education and financial services. Starting July
11, AT&T will begin marketing to its business customers, which includes all of
the Fortune 1000. To prepare for the rollout, AT&T will be conducting extensive
training among its thousands of enterprise and small business sales force and
customer-support employees. AT&T is the world's leading provider of corporate
wireless e-mail solutions.
"We're anticipating significant demand from companies of all sizes based on the feedback we've received from the many corporate customers who have already purchased the first-generation iPhone, as well as from companies waiting for the new iPhone's business applications," said Ron Spears, group president, AT&T Global Business Services. "Businesses will benefit from all of the iPhone's new features, as well as the ability to maximize productivity by using the combination of 3G broadband connectivity and customized applications."
Through its work over the years with the developer community, AT&T has developed a robust catalog of hundreds of enterprise applications (www.att.com/choice). AT&T will work with Apple, using the SDK process, to enable many of these applications, which today operate on other AT&T-powered wireless devices, to also work on the iPhone. The growth of mobile applications represents a huge opportunity for companies to improve productivity through reduced overhead expenses, access to real-time information and higher levels of speed and efficiency.
Unleashing Innovative Applications With the SDK
AT&T is working closely with Apple to roll out several new and innovative
applications that take advantage of the iPhone's advanced capabilities. For
example, AT&T is finalizing YELLOWPAGES.COM mobile for the iPhone, an innovative
GPS-enabled application that combines local search with social networking
capabilities, giving users the ability to search for information, share reviews
and plan activities with friends, neighbors and co-workers. In addition, the
company will work to certify many of its existing mobile applications for
businesses, created in conjunction with third-party developers, for use on the
iPhone
PAWTUCKET, R.I.--(BUSINESS WIRE)--As if their size isn’t intimidating enough, the gladiators up the ante on the June 9 episode of NBC’s American Gladiators by donning Hasbro’s (NYSE:HAS) new huge green “HULK SMASH HANDS,” it was announced today. The promotion is part of a special “THE INCREDIBLE HULK”-themed episode of American Gladiators that airs tonight from 8-9:00 p.m. E.T. The show promotes the launch of Universal Pictures and Marvel Studios’ new action-thriller THE INCREDIBLE HULK, which smashes into theaters on Friday, June 13.
Featured on the program are the popular HULK SMASH HANDS, which contain sound effects — such as growls, wall crashes and a warning to enemies to avoid making you angry — that activate when the fists bash into anything. Gladiators and in-studio audience members alike will “Hulk Out” by wearing the HULK SMASH HANDS and channeling their inner big green Super Hero. The HULK SMASH HANDS are already at stores across the country and have an approximate retail price of $19.99.
Viewers of the June 9 program will also get a very special sneak peek of the new HULK MEGA HANDS — which hit store shelves nationwide in October 2008. The HULK MEGA HANDS, which measure an outrageous 15 inches high, 21 inches wide and 9 inches long, are the ultimate over-the-top accessory for children — and young-at-heart adults — wanting to role-play as the strongest Super Hero in the universe. Simply slip on the oversized hands and dare anyone to make you angry.
Hands down the largest HULK role-playing fists ever created, the HULK MEGA HANDS are worn by American Gladiators’ Titan and Justice as they pummel contestants during the “Gauntlet” competition.
While HULK MEGA HANDS won’t arrive in stores until fall (approximate retail price: $39.99), fans attending San Diego Comic-Con in late July can see them for the first time in person at the Hasbro booth.
About The Incredible Hulk
THE INCREDIBLE HULK kicks off an all-new, explosive and action-packed epic of one of the most popular Super Heroes of all time. In the film, scientist Bruce Banner (Edward Norton) desperately hunts for a cure to the gamma radiation that poisoned his cells and unleashes the unbridled force of rage within him: The Hulk.
Living in the shadows—cut off from a life he knew and the woman he loves, Betty Ross (Liv Tyler)—Banner struggles to avoid the obsessive pursuit of his nemesis, General Thunderbolt Ross (William Hurt), and the military machinery that seeks to capture him and brutally exploit his power.
As all three grapple with the secrets that led to The Hulk’s creation, they are confronted with a monstrous new adversary known as The Abomination, whose destructive strength exceeds even The Hulk’s own. And on June 13, 2008, one scientist must make an agonizing final choice: accept a peaceful life as Bruce Banner or find heroism in the creature he holds inside—THE INCREDIBLE HULK.
About Marvel Entertainment, Inc.
With a library of over 5,000 characters built over more than sixty years of comic book publishing, Marvel Entertainment, Inc. is one of the world's most prominent character-based entertainment companies. Marvel utilizes its character franchises in licensing, entertainment (via Marvel Studios) and publishing (via Marvel Comics), with emphasis on feature films, DVD, consumer products, video games, action figures and role-playing toys, television and promotions. Marvel's strategy is to leverage its franchises in a growing array of opportunities around the world. For more information visit www.marvel.com.
About HASBRO
Hasbro (NYSE:HAS) is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER, CRANIUM and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world. © 2008 Hasbro, Inc. All Rights Reserved.
About American Gladiators
Hulk Hogan ("Hogan Knows Best") and Laila Ali ("Dancing with the Stars") host "American Gladiators," the iconic competition series, with a fresh modern reinvention for the 21st century. The show features new events and new gladiators in a new state-of-the-art Gladiator Arena. Using splashy twists including special effects, water skills and the latest technology, the classic Gladiator games have been upgraded with even higher thrills, impact, energy and spectacle.
"American Gladiators" is produced by MGM Television (the original producers of the show) and Reveille (NBC's "The Office" and "The Biggest Loser," "Nashville Star," "Ugly Betty"). Reveille's Mark Koops, Howard T. Owens and David A. Hurwitz ("Fear Factor") are the executive producers alongside Flor-Jon Films Inc.'s Johnny Ferraro, original series creator.
LAKELAND, Fla.--Today Publix Super Markets, Inc. announced that it has entered into an agreement to purchase 49 Florida stores from Albertson’s LLC. The transaction is expected to close in September and includes store locations throughout the state with 15 locations in North Florida, 30 locations in Central Florida and four locations in South Florida.
Publix CEO, Ed Crenshaw, commented on the acquisition, “The demand for the high-quality service our associate owners provide gives us the opportunity to reinvest in these communities by acquiring additional sites for Publix stores. We continue to focus on being the premier food retailer in the areas in which we operate.”
Grand opening dates for all locations will depend on the scope of the remodels. The acquisition will allow Publix to operate four stores in Escambia County, a new market area for the company.
Publix encourages impacted Albertson’s employees with a passion for food and a commitment to customer service to apply for employment. To assist in this process, Publix will hold job fairs dedicated to Albertson’s employees in the upcoming weeks.
Publix is privately owned and operated by its 142,000 employees, with 2007 sales of $23 billion. Currently Publix has 936 stores in Florida, Georgia, South Carolina, Alabama and Tennessee. The company has been named one of FORTUNE’s “100 Best Companies to Work For in America” for 11 consecutive years. In addition, Publix’s dedication to superior quality and customer service is recognized as tops in the grocery business, most recently by an American Customer Satisfaction Index survey. For more information, visit the company’s Web site, www.publix.com.
(C) MBN 2009