Apple Sales Drop

Apple sales dropped at the end of 2022 as shoppers squeezed by the rising cost of living cut back their purchases. Sales at the iPhone giant fell 5% in the three months to December compared with the same period in 2021. It was the biggest decline since 2019 and worse than expected. The update came as many firms warn about a sharp economic slowdown, especially in the tech sector which boomed during the pandemic. Apple boss Tim Cook said the firm was navigating a "challenging environment". He blamed the sales decline on supply shortages due to Covid-19 disruption in China - where its phones are manufactured - and a strong dollar, as well as wider economic weakness stemming from rising prices, the war in Ukraine and lingering effects from the pandemic. Apple said the decline in sales occurred throughout the world and hit most of its products. Sales of its popular iPhones were down more than 8%, and sales of Mac computers dropped 29%.

Apple Sales Fall

Tesco Buys Paperchase

Tesco has bought the brand and intellectual property of High Street stationery chain Paperchase, hours after it fell into administration. But the grocer has not acquired the chain's 106 shops in the UK and Ireland, leaving the future of 820 staff in doubt. Paperchase's administrators, Begbies Traynor, said 75 workers at its head office have been made redundant. All stores will remain open for now with two weeks to redeem gift cards. Tesco will now sell the stationer's goods in its stores across the UK. It follows a challenging few years for Paperchase which has been hit recently by rising costs and falling sales. The business also has stores in train stations, which have suffered from reduced footfall due to more people now working from home. Paperchase, which was founded in 1968, went through a form of insolvency proceedings four years ago to cut stores and reduce costs. In a separate announcement on Tuesday, Tesco said more than 2,000 roles were set to go across its business as it announced more changes to the way it runs its shops.

Tesco buy Papeschase

Porsche Price Error

Potential car buyers in China have found that an online advert for a luxury sports car was just too good to be true. A Porsche dealership in the the city of Yinchuan listed the brand new vehicle for 124,000 yuan ($18,300, £15,000). That is just a fraction of what it should have been. The Panamera has a starting price of $148,000. The promotion attracted hundreds of would-be buyers who rushed to secure what appeared to be a bargain. A spokesperson for the German car maker told the BBC that the promotion "contained a serious mistake in the listed retail price", which was taken down immediately. The dealership also contacted "every bidder individually and explained the situation with apology". The incorrect information was posted on 30 January and customers who paid the 911 yuan reservation fee have been refunded, Porsche said. Porsche started selling cars in mainland China more than 20 years ago. In recent years the company expanded its footprint in the world's second largest economy as it opened new dealerships. The country is now Porsche's largest single market globally, with sales totalling $6.2bn in the first six months of last year.

Porsche Price

Amazon Worker Strike

Amazon workers are staging the first ever UK strike on Wednesday against the online giant in a protest over pay. Around 300 staff walked out at Amazon's Coventry warehouse, the GMB union said, over what they called a "derisory" 5% pay rise to £10.50 an hour. Workers told the BBC about "severe" conditions, claiming they are constantly monitored and upbraided for "idle time" lasting just a few minutes. Amazon said it has a system "that recognises great performance". Two Amazon workers, who are members of the GMB, said the robots in the warehouse "are treated better than us". In August, Amazon offered UK workers a 5% payrise, which was worth 50p outside London and the South East. Inflation, the rate at which prices rise, is at a 40-year high, putting pressure on household budgets. An Amazon spokesman said it was "proud" of its "competitive" pay rates. He said the starting pay for workers was £11.45 an hour in London and the South East, and £10.50 an hour in the rest of the UK. Amazon's global sales and profits soared as Covid restrictions forced people to shop online. Between 2019 and 2020, profits nearly doubled to $21.3bn (£17.2bn) and rose again the following year to $33.3bn.

Amazon Worker Strike

Kidult Shopping Trend

Parents are increasingly buying toys and games for themselves, despite cost-of-living pressures, new research suggests. Analysts NPD said more than one in four toys and games bought last year went to adults and teenagers. So-called kidults may be spending their limited disposable income on puzzles rather than nights out, it added. Among the most popular items sold were soft toys such as Squishmallows, building sets, action figures and vehicles. It came as toy sales overall fell in 2022 as parents cut back on low-cost impulse buys. The number of toys and games sold fell by 6% compared with the previous year, NPD said. Parents typically bought toys of £30 to £50, but resisted small and unplanned purchases, with sales of "pocket money toys" under £10 falling sharply. The average price of a toy is £10.54. With price so important to consumers, the toy industry has been lobbying the government over rules regarding the sale of cheap, potentially low-quality products on internet marketplaces.

Kidult

Business Live!

 

We are happy to announce another fantastic Business Live opportunity for you to take part in. We have arranged for Craig Blakeley from botanical drink brand Fentimans to come into school to speak with you on Monday 6^th February from 12:30pm till 1pm in the Library. Craig has a wealth of experience in marketing fast moving consumer goods (FMCG) and will be able to bring some of our theory to life with examples of how the develop and advertise new products. He will also explain his journey from taking GCSE Business to where he is today. Space is limited in the library to only the first 30 that book a place so if you wish to attend, please complete the form which has been sent to your e-mail.

Fentimans

Reed Hastings Steps Down from Netflix

Reed Hastings is stepping down from his role as co-chief executive of Netflix, the firm he helped found more than 25 years ago. His announcement came as Netflix unveiled a big rise in subscriber numbers at the end of last year. With money tight, people were expected to cut back on streaming services. But Netflix bucked that trend, adding more than seven million new subscribers, far more than analysts expected. Harry and Meghan's revelations were a big draw, as was new Addams Family spin-off series Wednesday, and the film Glass Onion. Mr Hastings' long-planned move means he is leaving Netflix in a crowded market, with challenges ahead, but with 231 million viewers signed up around the globe. Mr Hastings, who was an early pioneer in the streaming business and is seen as one of the original tech industry disruptors, will stay on as executive chairman. Business students may also wish to check out 'Bank of Dave' which is about how a self-made car dealer decides to fight the odds and set up his own local bank - check out the trailer below.

Netflix