Blend 2.3 (#154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

It was already dark outside when FBI Special Agent Eric Proudfoot painstakingly typed out the last lines of a formal complaint for the court: to request 10 years in prison, a $250,000 fine, and 3 years of special supervision after release.

Proud-legged, not without reason, was proud of himself and pleased. Still, for 10 years of impeccable service, he got the hang of catching Chinese spies. A couple of years ago I caught a thief by the hand trying to steal data from the base of the US Army Corps of Engineers, and now a well-executed operation in partnership with Apple has been added to the piggy bank. You can expect a raise. Having sent the document to the printer, Gordonog smiled, what an absurd situation it turned out to be. It is clear that secrecy at Apple is no longer the same as under Steve Jobs, but how can one act so brazenly?

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

April 10 on Saturday night, April 28, Xiaolang Zhang, an engineer trying to be at ease, walked out of Apple's secret self-driving car lab carrying a bundle of wires, a keyboard and a Linux server under his arm. And on May 1, a security officer who was looking at CCTV footage from the weekend choked on his coffee from what he saw.

Zhang has worked as a software and hardware engineer at Cupertino since December 2015. The Titan project he worked on was terribly secret - the development of an i-mobile, designed, like all Apple products, to shift the globe by several degrees.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

Zhang was in good standing and even had access to the secret sections of the database.

At the end of March, Zhang asked for a month's leave due to him to care for his newborn child. In Silicon Valley, this is a fairly common practice, so the request did not arouse suspicion. Zhang went to China to visit relatives. However, when he returned to work on April 30, he wrote a letter of resignation, citing the failing health of his mother, because of which he was forced to move from the United States to his homeland. In an interview with HR, Zhang let slip that when he returned to China, he would work for Xiaopeng Motors, a startup that also develops self-driving cars. The personnel department relayed the news to the security team, who, as instructed, decided to check what Zhang was up to. The audit revealed amazing things. In the last working month, Zhang's online activity has increased greatly. He downloaded 40 GB of data, even more surprised the Security Council to see Zhang, who was on vacation, dragging a keyboard and a server from the laboratory.

Initially, Apple did not want to wash dirty linen in public, so they interrogated Zhang on their own, who at first denied that he was at work, and then innocently stated that, they say, he took the server out of curiosity so that he could work at home on his own. And here the company no longer had a choice, they had to write an official request to the FBI. The bureau quickly got to the bottom of the situation, launched an investigation, and even managed to get Zhang off the plane to China at the last moment.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The story turned out to be truly detective, but naive. And we learned some interesting facts about Apple. Firstly, it turns out that it is easy to take out the server from the secret laboratory. Secondly, Apple prefers the Linux operating system for servers. And, thirdly, Cupertino had to share information about the project at least in general terms.

Last year, rumors circulated that the Titan project was closed, but it turns out that this is not the case and at the moment the company has been developing a smart car for 4 years already.

Apple also had to disclose that the company employs 135,000 people, 5,000 of which are involved in the project. And 2,700 people, including Zhang, have access to the secret sections of the database.

In my opinion, these are amazing numbers. If you remember stories about previous Apple projects, development was usually done by a small group. 5,000 is a huge number of dedicated employees. But the main question is, what does such a mass of people do? For example, Tesla started making cars with only 1,000 people, and before the launch of the Model 3, managed to manage business with 6,000 employees.

In any case, there is no smoke without fire, and if Apple has allocated such significant human resources to the project, then it is already close to the final stage, and most likely it is something more than an autonomous car.

Xiaomi IPO

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

A few words about Xiaomi's IPO. The company listed its shares on the Hong Kong stock exchange on July 8, so the news is not new. However, I believe now that the news background has become calmer, generalizing conclusions can be drawn. I guess you remember that the IPO was "sold" to the public as the largest Chinese IPO ever.

However, everything did not go according to plan, and instead of 10 billion, the company managed to raise 2 times less. Immediately after the placement at a price of 17 Hong Kong dollars, or 2.17 in US currency, the shares began to fall instead of rising. There was no serious drop, since it was not in vain that Xiaomi invited a whole galaxy of financial institutions to take part in the placement. All the leading investment banks, from Goldman Sachs to Myrill Linch, acted as underwriters.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

At the moment, the price has stabilized and even increased to $2.55. But the start of sales at Xiaomi turned out to be difficult. It turns out that Chinese stock exchanges have banned mainland investors from buying shares in the company. Xiaomi is a very popular company at home, and its IPO is generating interest, so analysts believe that the Chinese authorities did not want the cash flows to rush abroad. At the moment, initial agreements have already been reached with mainland China.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

There is also a 700-page information booklet for potential investors in the public domain, in which Xiaomi showed financial statements and told what it plans to spend money on.

Let's start with a quote from the company's official vision:

Be a friend of our clients. And to be the coolest company in the hearts of our users.

Four Bedrooms Apartment For Rent At Masaki

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The second interesting quote is the promise of a better price. Xiaomi promises that all its gadgets will be sold at a margin of 5%, and if the company accidentally earns more, it will return the surplus to its customers (how this will happen is unclear).

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

This very provocative statement can act like a tub of cold water on potential investors. After all, a reasonable question arises, posed by Vladimir Vysotsky: “Where is the money, Zin?”.

For comparison, Apple, according to Reuters, earns $500-600 on one iPhone X, which sells for $999, that is, at least half the price.

By the way, Xiaomi was often called the Chinese Apple, but this comparison is incorrect. Xiaomi is building a business like Amazon. And the hardware serves to bring the user into the company's ecosystem. If you look at the financial statements, then it is the services that the company plans to earn on. For example, in 2017, services accounted for only 8.6% in the revenue structure, but their marginality was 60%.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

By the way, over the past three years, net profit for services has been growing by an average of 60% every year. Shaky moment that the basis is not useful services, but advertising ones:

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

It also unexpectedly turned out that Xiaomi is a cool venture capitalist, that is, a company that is a professional in investing in various types of businesses. Xiaomi has a 10% stake in a coffee machine business, a 30% stake in a video game studio, a 21% stake in a news aggregator company, and even a 10 percent stake in a leather goods business. And in 2017, investments brought the company 53% of all operating profit. If the company opens its investment division, I will take the money to them in trust.

By the way, here you need to understand that, despite the success, the company has remained unprofitable all these years.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Interestingly, the main source of the minus is the so-called fair value changes of convertible redeemable preferred shares. Unfortunately, there are no details, but, as I understand it, this is a kind of loan money that the company collected at the first stage. Now the obligations must be repaid.

The company also told where and on what it plans to spend the funds raised from the IPO.

30% is planned to be spent on the development of new products, both phones and smart home devices. Xiaomi wants to expand the staff and attract new engineers and designers. The company also wants to focus on the development of artificial intelligence, which has already become a traditional statement. Curiously, the company says it already has well-articulated specific projects that the funds will go towards.

Another 30% will be spent on attracting and purchasing promising companies, through which the product portfolio will be expanded.

The last 30% - for geographical expansion. The company plans to open offices, focusing primarily on Europe and South Asia.

The remaining 10% will go towards general purposes and pocket expenses.

As a conclusion, we can say that Xiaomi turned out to have much better reporting than I thought. The company manages to make good money on its services, and the net profit from them shows good dynamics. Of course, today the company is not even worth the money (45 billion) in which it is estimated. However, she managed to acquire a credibility from investors. And finally, we must recall the “smiling curve”, proposed in 1992 by the founder of Acer, which clearly demonstrates where the greatest added value lies in the production of products. The curve was originally designed for the computer market, but it fits well with the electronics industry as a whole.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The ends of the "smile" are where the money is. On the one hand, these are R&D and patents, on the other hand, Marketing and Service. And in the center is production, which is usually the most low-margin. Xiaomi business curve confirms. Production brings the least money, and branded services with advertising, which can be categorized as marketing, the most. And judging by the distribution of funds received from the sale of shares, Xiaomi is moving in the right direction.

Simcomat

Update. There is an inaccuracy in the text: In autumn Simkomat will be sold not only in Spain, but also in Russia, Saudi Arabia, Cameroon and other countries. In Russia, SIMKOMATs will be available for purchase in September.

Unexpectedly, it turned out that July 18 is Tetris Day. In 1985, the first electronic device for the game was released. The Simkomat company decided to use this date as an occasion to hold a small press conference in its office and show a new version of the terminal for issuing SIM cards.

I'm indifferent to Tetris, but I've never seen Simkomats live before. The old one stood out for its impressive dimensions and weight of 200 kilograms.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Against its background, the new one looked stylish and even slightly futuristic. A small terminal, together with a stand weighing only about 30 kilograms. Can be attached to the wall.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The main idea of ​​the simcomat is to automate the issuance of carrier SIM cards. If the old device was quite complicated: you had to sign a contract, put it in the scanning slot and perform many more actions, then the new version works much easier. Imagine a situation. A trip on vacation, you need to buy a local SIM card upon arrival. In the case of a SIM ATM, everything is simple: you need to select the tariff you like on the operator’s website in advance, enter the data, pay, and upon arrival go to the device, attach the issued QR code to the scanner, receive a SIM card and go on about your business. The code only works once. Everything works simply and elegantly.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation Mix 2.3 ( #154) Samsung, Apple, Xiaomi, SIMKOMAT: no speculation Mix 2.3 (No. 154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

If at home there was no time to go to the operator's website, then everything can be done on the spot. Simkomat distributes Wi-Fi. At the moment, 150 cards fit into one simcomat. When the cards run out, the device sends a notification to the owner. The price of the device is $2,000. And, according to the developers, it will pay off within 3 months.

Simkomat was designed and implemented by Izhevsk businessman Artem Subbotin. Unfortunately, so far it is not known about work in Russia, but we have already signed a contract with the Drimsim operator, which specializes in the sale of tourist SIM cards. Already in the fall, simcomats can be found, for example, upon arrival in Spain.

However, in addition to SIM cards, the device has great potential in other areas. In fact, this is a device that can issue any cards of a standard size - bank cards, travel cards, passes, etc. All interaction takes place through the application in the phone. Relatively speaking, a guest pass system in a business center may look like this: the inviting party sent a QR code, received a pass, and entered the territory.

I am very pleased that this is a Russian invention. The device turned out to be interesting, the scenarios for its use do not look far-fetched, so I am sure that there will be a demand for a simcomat. And, of course, we wish you good luck.

Samsung and 2018 Q2 results

Samsung has not yet officially announced the results for the second quarter of 2018, but there are already gossip that there will be no records, the Galaxy S9 is selling desperately badly, and profits are falling, and in general it is time for the Korean manufacturer to curtail the bag. But, as Mark Twain said in response to an unexpected obituary in the New York Journal: "The rumors of my death are somewhat exaggerated."

So Samsung, like Uncle Fyodor from the Prostokvashino cartoon, can safely write in the second quarterly report: “My dear investors. I live well, just wonderful.” And a picture:

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

PwC auditors would be surprised if they saw this in the official report. Unfortunately, now everyone is obsessed with records and high-profile figures. The last 4 quarters have been record-breaking for Samsung, each better than the last. And the first quarter of 2018 looks frankly indecent in general - 15.64 trillion KRW (14.582 billion US dollars). The second quarter is expected at KRW14.8 trillion, up 5% year-on-year, but below the previous record. For some reason, it is believed that Samsung's main profit comes from phones and, of course, only flagships.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Probably, they reason this way by analogy with Apple, for which the iPhone remains a key product. Please look again at the "smiling curve" from the text about Xiaomi. Its top points are the dimples on Samsung's chubby cheeks, as the manufacturer has key sources of profit there. Below is a chart of the company's operating profit for the two leading segments. And the last record quarters are not related to phones, but to the crazy growth in sales of semiconductors, namely memory. There is a shortage of quality solutions on the market.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Samsung memory is used in many devices on the market, and Apple is one of the key customers, by the way.

However, markets are always cyclical. Increased demand with a shortage of supply led to higher prices, as well as increased investment in production and expansion of current capacities, which, in turn, leads to an increase in supply, and hence lower prices. Then the market will enter a new round, and everything will repeat itself. These are predictable phenomena, and there is nothing unusual about them.

Well, the phones were sold and are still being sold. I don’t see any stunning figures and records there.

Q3 2016 is a review of Note 7. By the way, pay attention to the strength of the company: profit has gone almost to zero, but not negative.

According to Samsung reports, more curiosity is why their consumer electronics is not only not growing, but even slightly subsided. However, this is a matter for a separate article.

In conclusion, we can say that you should not pay attention to the little things. That Apple and Samsung are firmly on their feet, and a little volatility in sales does not play a role. You should look at the company as a whole.

Conclusion

There are a lot of interesting events going on in the market. Thanks to the entry into the market, Xiaomi can now be watched more closely, as the status obliges to issue reports. Of course, it’s interesting what Apple is doing behind closed doors. I joked about the security system in the post, but seriously, I respect how the company manages to keep a project that employs 5,000 people in complete secrecy.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

April 10 on Saturday night, April 28, Xiaolang Zhang, an engineer trying to be at ease, walked out of Apple's secret self-driving car lab carrying a bundle of wires, a keyboard and a Linux server under his arm. And on May 1, a security officer who was looking at CCTV footage from the weekend choked on his coffee from what he saw.

Zhang has worked as a software and hardware engineer at Cupertino since December 2015. The Titan project he worked on was terribly secret - the development of an i-mobile, designed, like all Apple products, to shift the globe by several degrees.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Zhang was in good standing and even had access to the secret sections of the database.

At the end of March, Zhang asked for a month's leave due to him to care for his newborn child. In Silicon Valley, this is a fairly common practice, so the request did not arouse suspicion. Zhang went to China to visit relatives. However, when he returned to work on April 30, he wrote a letter of resignation, citing the failing health of his mother, because of which he was forced to move from the United States to his homeland.In an interview with HR, Zhang let slip that when he returned to China, he would work for Xiaopeng Motors, a startup that also develops self-driving cars. The personnel department relayed the news to the security team, who, as instructed, decided to check what Zhang was up to. The audit revealed amazing things. In the last working month, Zhang's online activity has increased tremendously. He downloaded 40 GB of data, even more surprised the Security Council to see Zhang, who was on vacation, dragging a keyboard and a server from the laboratory.

Initially, Apple did not want to wash dirty linen in public, so they interrogated Zhang on their own, who at first denied that he was at work, and then innocently stated that, they say, he took the server out of curiosity so that he could work at home on his own. And here the company no longer had a choice, they had to write an official request to the FBI. The bureau quickly got to the bottom of the situation, launched an investigation, and even managed to get Zhang off the plane to China at the last moment.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The story turned out to be truly detective, but naive. And we learned some interesting facts about Apple. Firstly, it turns out that it is easy to take out the server from the secret laboratory. Secondly, Apple prefers the Linux operating system for servers. And, thirdly, Cupertino had to share information about the project at least in general terms.

Last year, rumors circulated that the Titan project was closed, but it turns out that this is not the case and at the moment the company has been developing a smart car for 4 years already.

Apple also had to disclose that the company employs 135,000 people, 5,000 of which are involved in the project. And 2,700 people, including Zhang, have access to the secret sections of the database.

In my opinion, these are amazing numbers. If you remember stories about previous Apple projects, development was usually done by a small group. 5,000 is a huge number of dedicated employees. But the main question is, what does such a mass of people do? For example, Tesla started making cars with only 1,000 people, and before the launch of the Model 3, managed to manage business with 6,000 employees.

In any case, there is no smoke without fire, and if Apple has allocated such significant human resources to the project, then it is already close to the final stage, and most likely it is something more than an autonomous car.

Xiaomi IPO

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

A few words about Xiaomi's IPO. The company listed its shares on the Hong Kong stock exchange on July 8, so the news is not new. However, I believe now that the news background has become calmer, generalizing conclusions can be drawn. I guess you remember that the IPO was "sold" to the public as the largest Chinese IPO ever.

However, everything did not go according to plan, and instead of 10 billion, the company managed to raise 2 times less. Immediately after the placement at a price of 17 Hong Kong dollars, or 2.17 in US currency, the shares began to fall instead of rising. There was no serious drop, since it was not in vain that Xiaomi invited a whole galaxy of financial institutions to take part in the placement. All leading investment banks, from Goldman Sachs to Myrill Linch, acted as underwriters.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

At the moment, the price has stabilized and even increased to 2.55 US dollars. But the start of sales at Xiaomi turned out to be difficult. It turns out that Chinese stock exchanges have banned mainland investors from buying the company's shares. Xiaomi is a very popular company at home, and its IPO is generating interest, so analysts believe that the Chinese authorities did not want the cash flows to rush abroad. At the moment, initial agreements have already been reached with mainland China.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

There is also a 700-page information booklet for potential investors in the public domain, in which Xiaomi showed financial statements and told what it plans to spend money on.

Let's start with a quote from the company's official vision:

Be a friend of our clients. And to be the coolest company in the hearts of our users.

Four Bedrooms Apartment For Rent At Masaki

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The second interesting quote is the promise of a better price. Xiaomi promises that all its gadgets will be sold at a margin of 5%, and if the company accidentally earns more, it will return the surplus to its customers (how this will happen is unclear).

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

This very provocative statement can act like a tub of cold water on potential investors. After all, a reasonable question arises, posed by Vladimir Vysotsky: “Where is the money, Zin?”.

For comparison, Apple, according to Reuters, earns $500-600 on one iPhone X, which sells for $999, that is, at least half the price.

By the way, Xiaomi was often called the Chinese Apple, but this comparison is incorrect. Xiaomi is building a business like Amazon. And the hardware serves to bring the user into the company's ecosystem. If you look at the financial statements, then it is the services that the company plans to earn on. For example, in 2017, services accounted for only 8.6% in the revenue structure, but their marginality was 60%.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

By the way, over the past three years, net profit for services has been growing by an average of 60% every year. Shaky moment that the basis is not useful services, but advertising ones:

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

It also unexpectedly turned out that Xiaomi is a cool venture capitalist, that is, a company that is a professional in investing in various types of businesses. Xiaomi has a 10% stake in a coffee machine business, a 30% stake in a video game studio, a 21% stake in a news aggregator company, and even a 10 percent stake in a leather goods business. And in 2017, investments brought the company 53% of all operating profit. If the company opens its investment division, I will take the money to them in trust.

By the way, here you need to understand that, despite the success, the company has remained unprofitable all these years.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Interestingly, the main source of the minus is the so-called fair value changes of convertible redeemable preferred shares. Unfortunately, there are no details, but, as I understand it, this is a kind of loan money that the company collected at the first stage. Now the obligations must be repaid.

The company also told where and on what it plans to spend the funds raised from the IPO.

30% is planned to be spent on the development of new products, both phones and smart home devices. Xiaomi wants to expand the staff and attract new engineers and designers. The company also wants to focus on the development of artificial intelligence, which has already become a traditional statement. Curiously, the company says it already has well-articulated specific projects that the funds will go towards.

Another 30% will be spent on attracting and purchasing promising companies, through which the product portfolio will be expanded.

The last 30% - for geographical expansion. The company plans to open offices, focusing primarily on Europe and South Asia.

The remaining 10% will go towards general purposes and pocket expenses.

As a conclusion, we can say that Xiaomi turned out to have much better reporting than I thought. The company manages to make good money on its services, and the net profit from them shows good dynamics. Of course, today the company is not even worth the money (45 billion) in which it is estimated. However, she managed to acquire a credibility from investors. And finally, we must recall the “smiling curve”, proposed in 1992 by the founder of Acer, which clearly demonstrates where the greatest added value lies in the production of products. The curve was originally designed for the computer market, but it fits well with the electronics industry as a whole.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The ends of the "smile" are where the money is. On the one hand, these are R&D and patents, on the other hand, Marketing and Service. And in the center is production, which is usually the most low-margin. Xiaomi business curve confirms. Production brings the least money, and branded services with advertising, which can be categorized as marketing, the most. And judging by the distribution of funds received from the sale of shares, Xiaomi is moving in the right direction.

Simcomat

Update. There is an inaccuracy in the text: In autumn Simkomat will be sold not only in Spain, but also in Russia, Saudi Arabia, Cameroon and other countries. In Russia, SIMKOMATs will be available for purchase in September.

Unexpectedly, it turned out that July 18 is Tetris Day. In 1985, the first electronic device for the game was released. The Simkomat company decided to use this date as an occasion to hold a small press conference in its office and show a new version of the terminal for issuing SIM cards.

I'm indifferent to Tetris, but I've never seen Simkomats live before. The old one stood out for its impressive dimensions and weight of 200 kilograms.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Against its background, the new one looked stylish and even slightly futuristic. A small terminal, together with a stand weighing only about 30 kilograms. Can be attached to the wall.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The main idea of ​​the simcomat is to automate the issuance of carrier SIM cards. If the old device was quite complicated: you had to sign a contract, put it in the scanning slot and perform many more actions, then the new version works much easier. Imagine a situation. A trip on vacation, you need to buy a local SIM card upon arrival. In the case of a SIM ATM, everything is simple: you need to select the tariff you like on the operator’s website in advance, enter the data, pay, and upon arrival go to the device, attach the issued QR code to the scanner, receive a SIM card and go on about your business. The code only works once. Everything works simply and elegantly.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation Mix 2.3 ( #154) Samsung, Apple, Xiaomi, SIMKOMAT: no speculation Mix 2.3 (No. 154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

If at home there was no time to go to the operator's website, then everything can be done on the spot. Simkomat distributes Wi-Fi. At the moment, 150 cards fit into one simcomat. When the cards run out, the device sends a notification to the owner. The price of the device is $2,000. And, according to the developers, it will pay off within 3 months.

Simkomat was designed and implemented by Izhevsk businessman Artem Subbotin. Unfortunately, so far it is not known about work in Russia, but we have already signed a contract with the Drimsim operator, which specializes in the sale of tourist SIM cards. Already in the fall, simcomats can be found, for example, upon arrival in Spain.

However, in addition to SIM cards, the device has great potential in other areas. In fact, this is a device that can issue any cards of a standard size - bank cards, travel cards, passes, etc. All interaction takes place through the application in the phone. Relatively speaking, a guest pass system in a business center may look like this: the inviting party sent a QR code, received a pass, and entered the territory.

I am very pleased that this is a Russian invention. The device turned out to be interesting, the scenarios for its use do not look far-fetched, so I am sure that there will be a demand for a simcomat. And, of course, we wish you good luck.

Samsung and 2018 Q2 results

Samsung has not yet officially announced the results for the second quarter of 2018, but there are already gossip that there will be no records, the Galaxy S9 is selling desperately badly, and profits are falling, and in general it is time for the Korean manufacturer to curtail the bag. But, as Mark Twain said in response to an unexpected obituary in the New York Journal: "The rumors of my death are somewhat exaggerated."

So Samsung, like Uncle Fyodor from the Prostokvashino cartoon, can safely write in the second quarterly report: “My dear investors. I live well, just wonderful.” And a picture:

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

PwC auditors would be surprised if they saw this in the official report. Unfortunately, now everyone is obsessed with records and high-profile figures. The last 4 quarters have been record-breaking for Samsung, each better than the last. And the first quarter of 2018 looks frankly indecent in general - 15.64 trillion KRW (14.582 billion US dollars). The second quarter is expected at KRW14.8 trillion, up 5% year-on-year, but below the previous record. For some reason, it is believed that Samsung's main profit comes from phones and, of course, only flagships.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Probably, they reason this way by analogy with Apple, for which the iPhone remains a key product. Please look again at the "smiling curve" from the text about Xiaomi. Its top points are the dimples on Samsung's chubby cheeks, as the manufacturer has key sources of profit there. Below is a graph of the company's operating profit for the two leading segments. And the last record quarters are not related to phones, but to the crazy growth in sales of semiconductors, namely memory. There is a shortage of quality solutions on the market.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Samsung memory is used in many devices on the market, and Apple is one of the key customers, by the way.

But markets are always cyclical. Increased demand with a shortage of supply led to higher prices, as well as increased investment in production and expansion of current capacities, which, in turn, leads to an increase in supply, and hence lower prices. Then the market will enter a new round, and everything will repeat itself. These are predictable phenomena, and there is nothing unusual about them.

Well, the phones were sold and are still being sold. I don’t see any stunning figures and records there.

Q3 2016 is a review of Note 7. By the way, pay attention to the strength of the company: profit has gone almost to zero, but not negative.

According to Samsung reports, more curiosity is why their consumer electronics is not only not growing, but even slightly subsided. However, this is a matter for a separate article.

In conclusion, we can say that you should not pay attention to the little things. That Apple and Samsung are firmly on their feet, and a little volatility in sales does not play a role. You should look at the company as a whole.

Conclusion

There are a lot of interesting events going on in the market. Thanks to the entry into the market, Xiaomi can now be watched more closely, as the status obliges to issue reports. Of course, it’s interesting what Apple is doing behind closed doors. I joked about the security system in the post, but seriously, I respect how the company manages to keep a project that employs 5,000 people in complete secrecy.

I hope that the guys with SIMKOMAT will succeed and the issuance of SIM cards from the tedious process will become easy and fast.

Blend 2.3 (#154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

It was already dark outside when FBI Special Agent Eric Proudfoot painstakingly typed out the last lines of a formal complaint for the court: to request 10 years in prison, a $250,000 fine, and 3 years of special supervision after release.

Proud-legged, not without reason, was proud of himself and pleased. Still, for 10 years of impeccable service, he got the hang of catching Chinese spies. A couple of years ago I caught a thief by the hand trying to steal data from the base of the US Army Corps of Engineers, and now a well-executed operation in partnership with Apple has been added to the piggy bank. You can expect a raise. Having sent the document to the printer, Gordonog smiled, what an absurd situation it turned out to be. It is clear that secrecy at Apple is no longer the same as under Steve Jobs, but how can one act so brazenly?

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

April 10 on Saturday night, April 28, Xiaolang Zhang, an engineer trying to be at ease, walked out of Apple's secret self-driving car lab carrying a bundle of wires, a keyboard and a Linux server under his arm. And on May 1, a security officer who was looking at CCTV footage from the weekend choked on his coffee from what he saw.

Zhang has worked as a software and hardware engineer at Cupertino since December 2015. The Titan project he worked on was terribly secret - the development of an i-mobile, designed, like all Apple products, to shift the globe by several degrees.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Zhang was in good standing and even had access to the secret sections of the database.

At the end of March, Zhang asked for a month's leave due to him to care for his newborn child. In Silicon Valley, this is a fairly common practice, so the request did not arouse suspicion. Zhang went to China to visit relatives. However, when he returned to work on April 30, he wrote a letter of resignation, citing the failing health of his mother, because of which he was forced to move from the United States to his homeland.In an interview with HR, Zhang let slip that when he returned to China, he would work for Xiaopeng Motors, a startup that also develops self-driving cars. The personnel department relayed the news to the security team, who, as instructed, decided to check what Zhang was up to. The audit revealed amazing things. In the last working month, Zhang's online activity has increased tremendously. He downloaded 40 GB of data, even more surprised the Security Council to see Zhang, who was on vacation, dragging a keyboard and a server from the laboratory.

Initially, Apple did not want to wash dirty linen in public, so they interrogated Zhang on their own, who at first denied that he was at work, and then innocently stated that, they say, he took the server out of curiosity so that he could work at home on his own. And here the company no longer had a choice, they had to write an official request to the FBI. The bureau quickly got to the bottom of the situation, launched an investigation, and even managed to remove Zhang from the plane to China at the last moment.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The story turned out to be truly detective, but naive. And we learned some interesting facts about Apple. Firstly, it turns out that it is easy to take out the server from the secret laboratory. Secondly, Apple prefers the Linux operating system for servers. And, thirdly, Cupertino had to share information about the project at least in general terms.

Last year, rumors circulated that the Titan project was closed, but it turns out that this is not the case and at the moment the company has been developing a smart car for 4 years already.

Apple also had to disclose that the company employs 135,000 people, 5,000 of which are involved in the project. And 2,700 people, including Zhang, have access to the secret sections of the database.

In my opinion, these are amazing numbers. If you remember stories about previous Apple projects, development was usually done by a small group. 5,000 is a huge number of dedicated employees. But the main question is, what does such a mass of people do? For example, Tesla started making cars with only 1,000 people, and before the launch of the Model 3, managed to manage business with 6,000 employees.

In any case, there is no smoke without fire, and if Apple has allocated such significant human resources to the project, then it is already close to the final stage, and most likely it is something more than an autonomous car.

Xiaomi IPO

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

A few words about Xiaomi's IPO. The company listed its shares on the Hong Kong stock exchange on July 8, so the news is not new. However, I believe now that the news background has become calmer, generalizing conclusions can be drawn. I guess you remember that the IPO was "sold" to the public as the largest Chinese IPO ever.

However, everything did not go according to plan, and instead of 10 billion, the company managed to raise 2 times less. Immediately after the placement at a price of 17 Hong Kong dollars, or 2.17 in US currency, the shares began to fall instead of rising. There was no serious drop, since it was not in vain that Xiaomi invited a whole galaxy of financial institutions to take part in the placement. All the leading investment banks, from Goldman Sachs to Myrill Linch, acted as underwriters.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

At the moment, the price has stabilized and even increased to $2.55. But the start of sales at Xiaomi turned out to be difficult. It turns out that Chinese stock exchanges have banned mainland investors from buying shares in the company. Xiaomi is a very popular company at home, and its IPO is generating interest, so analysts believe that the Chinese authorities did not want the cash flows to rush abroad. At the moment, initial agreements have already been reached with mainland China.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

There is also a 700-page information booklet for potential investors in the public domain, in which Xiaomi showed financial statements and told what it plans to spend money on.

Let's start with a quote from the company's official vision:

Be a friend of our clients. And to be the coolest company in the hearts of our users.

Four Bedrooms Apartment For Rent At Masaki

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The second interesting quote is the promise of a better price. Xiaomi promises that all its gadgets will be sold at a margin of 5%, and if the company accidentally earns more, it will return the surplus to its customers (how this will happen is unclear).

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

This very provocative statement can act like a tub of cold water on potential investors. After all, a reasonable question arises, posed by Vladimir Vysotsky: “Where is the money, Zin?”.

For comparison, Apple, according to Reuters, earns $500-600 on one iPhone X, which sells for $999, that is, at least half the price.

By the way, Xiaomi was often called the Chinese Apple, but this comparison is incorrect. Xiaomi is building a business like Amazon. And the hardware serves to bring the user into the company's ecosystem. If you look at the financial statements, then it is the services that the company plans to earn on. For example, in 2017, services accounted for only 8.6% in the revenue structure, but their marginality was 60%.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

By the way, over the past three years, net profit for services has been growing by an average of 60% every year. Shaky moment that the basis is not useful services, but advertising ones:

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

It also unexpectedly turned out that Xiaomi is a cool venture capitalist, that is, a company that is a professional in investing in various types of businesses. Xiaomi has a 10% stake in a coffee machine business, a 30% stake in a video game studio, a 21% stake in a news aggregator company, and even a 10 percent stake in a leather goods business. And in 2017, investments brought the company 53% of all operating profit. If the company opens its investment division, I will take the money to them in trust.

By the way, here you need to understand that, despite the success, the company has remained unprofitable all these years.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Interestingly, the main source of the minus is the so-called fair value changes of convertible redeemable preferred shares. Unfortunately, there are no details, but, as I understand it, this is a kind of loan money that the company collected at the first stage. Now the obligations must be repaid.

The company also told where and on what it plans to spend the funds raised from the IPO.

30% is planned to be spent on the development of new products, both phones and smart home devices. Xiaomi wants to expand the staff and attract new engineers and designers. The company also wants to focus on the development of artificial intelligence, which has become a traditional statement. Curiously, the company says it already has well-articulated specific projects that the funds will go towards.

Another 30% will be spent on attracting and purchasing promising companies, due to which the product portfolio will be expanded.

The last 30% - for geographical expansion. The company plans to open offices, focusing primarily on Europe and South Asia.

The remaining 10% will go towards general purposes and pocket expenses.

As a conclusion, we can say that Xiaomi turned out to have much better reporting than I thought. The company manages to make good money on its services, and the net profit from them shows good dynamics. Of course, today the company is not even worth the money (45 billion) in which it is estimated. However, she managed to acquire a credibility from investors. And finally, we must recall the “smiling curve”, proposed in 1992 by the founder of Acer, which clearly demonstrates where the greatest added value lies in the production of products. The curve was originally designed for the computer market, but it fits well with the electronics industry as a whole.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The ends of the "smile" are where the money is. On the one hand, these are R&D and patents, on the other hand, Marketing and Service. And in the center is production, which is usually the most low-margin. Xiaomi business curve confirms. Production brings the least money, and branded services with advertising, which can be categorized as marketing, the most. And judging by the distribution of funds received from the sale of shares, Xiaomi is moving in the right direction.

Simcomat

Update. There is an inaccuracy in the text: In autumn Simkomat will be sold not only in Spain, but also in Russia, Saudi Arabia, Cameroon and other countries. In Russia, SIMKOMATs will be available for purchase in September.

Unexpectedly, it turned out that July 18 is Tetris Day. In 1985, the first electronic device for the game was released. The Simkomat company decided to use this date as an occasion to hold a small press conference in its office and show a new version of the terminal for issuing SIM cards.

I'm indifferent to Tetris, but I've never seen Simkomats live before. The old one stood out for its impressive dimensions and weight of 200 kilograms.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Against its background, the new one looked stylish and even slightly futuristic. A small terminal, together with a stand weighing only about 30 kilograms. Can be attached to the wall.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

The main idea of ​​the simcomat is to automate the issuance of carrier SIM cards. If the old device was quite complicated: you had to sign a contract, put it in the scanning slot and perform many more actions, then the new version works much easier. Imagine a situation. A trip on vacation, you need to buy a local SIM card upon arrival. In the case of a SIM ATM, everything is simple: you need to select the tariff you like on the operator’s website in advance, enter the data, pay, and upon arrival go to the device, attach the issued QR code to the scanner, receive a SIM card and go on about your business. The code only works once. Everything works simply and elegantly.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation Mix 2.3 ( #154) Samsung, Apple, Xiaomi, SIMKOMAT: no speculation Mix 2.3 (No. 154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

If at home there was no time to go to the operator's website, then everything can be done on the spot. Simkomat distributes Wi-Fi. At the moment, 150 cards fit into one simcomat. When the cards run out, the device sends a notification to the owner. The price of the device is $2,000. And, according to the developers, it will pay off within 3 months.

Simkomat was designed and implemented by Izhevsk businessman Artem Subbotin. Unfortunately, so far it is not known about work in Russia, but we have already signed a contract with the Drimsim operator, which specializes in the sale of tourist SIM cards. Already in the fall, simcomats can be found, for example, upon arrival in Spain.

However, in addition to SIM cards, the device has great potential in other areas. In fact, this is a device that can issue any cards of a standard size - bank cards, travel cards, passes, etc. All interaction takes place through the application in the phone. Relatively speaking, a guest pass system in a business center may look like this: the inviting party sent a QR code, received a pass, and entered the territory.

I am very pleased that this is a Russian invention. The device turned out to be interesting, the scenarios for its use do not look far-fetched, so I am sure that there will be a demand for a simcomat. And, of course, we wish you good luck.

Samsung and 2018 Q2 results

Samsung has not yet officially announced the results for the second quarter of 2018, but there are already gossip that there will be no records, the Galaxy S9 is selling desperately badly, and profits are falling, and in general it is time for the Korean manufacturer to curtail the bag. But, as Mark Twain said in response to an unexpected obituary in the New York Journal: "The rumors of my death are somewhat exaggerated."

So Samsung, like Uncle Fyodor from the Prostokvashino cartoon, can safely write in the second quarterly report: “My dear investors. I live well, just wonderful.” And a picture:

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

PwC auditors would be surprised if they saw this in the official report. Unfortunately, now everyone is obsessed with records and high-profile figures. The last 4 quarters have been record-breaking for Samsung, each better than the last. And the first quarter of 2018 looks frankly indecent in general - 15.64 trillion KRW (14.582 billion US dollars). The second quarter is expected at KRW14.8 trillion, up 5% year-on-year, but below the previous record. For some reason, it is believed that Samsung's main profit comes from phones and, of course, only flagships.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Probably, they reason this way by analogy with Apple, for which the iPhone remains a key product. Please look again at the "smiling curve" from the text about Xiaomi. Its top points are the dimples on Samsung's chubby cheeks, as the manufacturer has key sources of profit there. Below is a chart of the company's operating profit for the two leading segments. And the last record quarters are not related to phones, but to the crazy growth in sales of semiconductors, namely memory. There is a shortage of quality solutions on the market.

Mix 2.3 (#154). Samsung, Apple, Xiaomi, SIMCOMAT: no speculation

Samsung memory is used in many devices on the market, and Apple is one of the key customers, by the way.

However, markets are always cyclical. Increased demand with a shortage of supply led to higher prices, as well as increased investment in production and expansion of current capacities, which, in turn, leads to an increase in supply, and hence lower prices. Then the market will enter a new round, and everything will repeat itself. These are predictable phenomena, and there is nothing unusual about them.

Well, the phones were sold and are still being sold. I don’t see any stunning figures and records there.

Q3 2016 is a review of Note 7. By the way, pay attention to the strength of the company: profit has gone almost to zero, but not negative.

According to Samsung reports, more curiosity is why their consumer electronics is not only not growing, but even slightly subsided. However, this is a matter for a separate article.

In conclusion, we can say that you should not pay attention to the little things. That Apple and Samsung are firmly on their feet, and a little volatility in sales does not play a role. You should look at the company as a whole.

Conclusion

There are a lot of interesting events going on in the market. Thanks to the entry into the market, Xiaomi can now be watched more closely, as the status obliges to issue reports. Of course, it’s interesting what Apple is doing behind closed doors. I joked about the security system in the post, but seriously, I respect how the company manages to keep a project that employs 5,000 people in complete secrecy.

I hope that the guys with SIMKOMAT will succeed and the issuance of SIM cards from the tedious process will become easy and fast.

Blend 2.3 (#154). Samsung, Apple, Xiaomi, SIMKOMAT: no speculation

It was already dark outside when FBI Special Agent Eric Proudfoot painstakingly typed out the last lines of a formal complaint for the court: to request 10 years in prison, a $250,000 fine, and 3 years of special supervision after release.

Proud-legged, not without reason, was proud of himself and pleased. Still, for 10 years of impeccable service, he got the hang of catching Chinese spies. A couple of years ago I caught a thief by the hand trying to steal data from the base of the US Army Corps of Engineers, and now a well-executed operation in partnership with Apple has been added to the piggy bank. You can expect a raise. Having sent the document to the printer, Gordonog smiled, what an absurd situation it turned out to be. It is clear that secrecy at Apple is no longer the same as under Steve Jobs, but how can one act so brazenly?

April 10 on Saturday night, April 28, Xiaolang Zhang, an engineer trying to be at ease, walked out of Apple's secret self-driving car lab carrying a bundle of wires, a keyboard and a Linux server under his arm. And on May 1, a security officer who was looking at CCTV footage from the weekend choked on his coffee from what he saw.

Zhang has worked as a software and hardware engineer at Cupertino since December 2015. The Titan project he worked on was terribly secret - the development of an i-mobile, designed, like all Apple products, to shift the globe by several degrees.

Zhang was in good standing and even had access to the secret sections of the database.

At the end of March, Zhang asked for a month's leave due to him to care for his newborn child. In Silicon Valley, this is a fairly common practice, so the request did not arouse suspicion. Zhang went to China to visit relatives. However, when he returned to work on April 30, he wrote a letter of resignation, citing the failing health of his mother, because of which he was forced to move from the United States to his homeland. In an interview with HR, Zhang let slip that when he returned to China, he would work for Xiaopeng Motors, a startup that also develops self-driving cars. The personnel department relayed the news to the security team, who, as instructed, decided to check what Zhang was up to. The audit revealed amazing things. In the last working month, Zhang's online activity has increased greatly. He downloaded 40 GB of data, even more surprised the Security Council to see Zhang, who was on vacation, dragging a keyboard and a server from the laboratory.

Initially, Apple did not want to wash dirty linen in public, so they interrogated Zhang on their own, who at first denied that he was at work, and then innocently stated that, they say, he took the server out of curiosity so that he could work at home on his own. And here the company no longer had a choice, they had to write an official request to the FBI. The bureau quickly got to the bottom of the situation, launched an investigation, and even managed to get Zhang off the plane to China at the last moment.

The story turned out to be truly detective, but naive. And we learned some interesting facts about Apple. Firstly, it turns out that it is easy to take out the server from the secret laboratory. Secondly, Apple prefers the Linux operating system for servers. And, thirdly, Cupertino had to share information about the project at least in general terms.

Last year, rumors circulated that the Titan project was closed, but it turns out that this is not the case and at the moment the company has been developing a smart car for 4 years already.

Apple also had to disclose that the company employs 135,000 people, 5,000 of which are involved in the project. And 2,700 people, including Zhang, have access to the secret sections of the database.

In my opinion, these are amazing numbers. If you remember stories about previous Apple projects, development was usually done by a small group. 5,000 is a huge number of dedicated employees. But the main question is, what does such a mass of people do? For example, Tesla started making cars with only 1,000 people, and before the launch of the Model 3, managed to manage business with 6,000 employees.

In any case, there is no smoke without fire, and if Apple has allocated such significant human resources to the project, then it is already close to the final stage, and most likely it is something more than an autonomous car.

Xiaomi IPO

A few words about Xiaomi's IPO. The company listed its shares on the Hong Kong stock exchange on July 8, so the news is not new. However, I believe now that the news background has become calmer, generalizing conclusions can be drawn. I guess you remember that the IPO was "sold" to the public as the largest Chinese IPO ever.

However, everything did not go according to plan, and instead of 10 billion, the company managed to raise 2 times less. Immediately after the placement at a price of 17 Hong Kong dollars, or 2.17 in US currency, the shares began to fall instead of rising. There was no serious drop, since it was not in vain that Xiaomi invited a whole galaxy of financial institutions to take part in the placement. All the leading investment banks, from Goldman Sachs to Myrill Linch, acted as underwriters.

At the moment, the price has stabilized and even increased to $2.55. But the start of sales at Xiaomi turned out to be difficult. It turns out that Chinese stock exchanges have banned mainland investors from buying shares in the company. Xiaomi is a very popular company at home, and its IPO is generating interest, so analysts believe that the Chinese authorities did not want the cash flows to rush abroad. At the moment, initial agreements have already been reached with mainland China.

There is also a 700-page information booklet for potential investors in the public domain, in which Xiaomi showed financial statements and told what it plans to spend money on.

Let's start with a quote from the company's official vision:

Be a friend of our clients. And to be the coolest company in the hearts of our users.

Four Bedrooms Apartment For Rent At Masaki Four Bedroom Apartment For Rent At Masaki

The second interesting quote is the promise of a better price. Xiaomi promises that all its gadgets will be sold at a margin of 5%, and if the company accidentally earns more, it will return the surplus to its customers (how this will happen is unclear).

This very provocative statement can act like a tub of cold water on potential investors. After all, a reasonable question arises, posed by Vladimir Vysotsky: “Where is the money, Zin?”.

For comparison, Apple, according to Reuters, earns $500-600 on one iPhone X, which sells for $999, that is, at least half the price.

By the way, Xiaomi was often called the Chinese Apple, but this comparison is incorrect. Xiaomi is building a business like Amazon. And the hardware serves to bring the user into the company's ecosystem. If you look at the financial statements, then it is the services that the company plans to earn on. For example, in 2017, services accounted for only 8.6% in the revenue structure, but their marginality was 60%.

By the way, over the past three years, net profit for services has been growing by an average of 60% every year. Shaky moment that the basis is not useful services, but advertising ones:

It also unexpectedly turned out that Xiaomi is a cool venture capitalist, that is, a company that is a professional in investing in various types of businesses. Xiaomi has a 10% stake in a coffee machine business, a 30% stake in a video game studio, a 21% stake in a news aggregator company, and even a 10 percent stake in a leather goods business. And in 2017, investments brought the company 53% of all operating profit. If the company opens its investment division, I will take the money to them in trust.

By the way, here you need to understand that, despite the success, the company has remained unprofitable all these years.

Interestingly, the main source of the minus is the so-called fair value changes of convertible redeemable preferred shares. Unfortunately, there are no details, but, as I understand it, this is a kind of loan money that the company collected at the first stage. Now the obligations must be repaid.

The company also told where and on what it plans to spend the funds raised from the IPO.

30% is planned to be spent on the development of new products, both phones and smart home devices. Xiaomi wants to expand the staff and attract new engineers and designers. The company also wants to focus on the development of artificial intelligence, which has already become a traditional statement. Curiously, the company says it already has well-articulated specific projects that the funds will go towards.

Another 30% will be spent on attracting and purchasing promising companies, through which the product portfolio will be expanded.

The last 30% - for geographical expansion. The company plans to open offices, focusing primarily on Europe and South Asia.

The remaining 10% will go towards general purposes and pocket expenses.

As a conclusion, we can say that Xiaomi turned out to have much better reporting than I thought. The company manages to make good money on its services, and the net profit from them shows good dynamics. Of course, today the company is not even worth the money (45 billion) in which it is estimated. However, she managed to acquire a credibility from investors. And finally, we must recall the “smiling curve”, proposed in 1992 by the founder of Acer, which clearly demonstrates where the greatest added value lies in the production of products. The curve was originally designed for the computer market, but it fits well with the electronics industry as a whole.

The ends of the "smile" are where the money is. On the one hand, these are R&D and patents, on the other hand, Marketing and Service. And in the center is production, which is usually the most low-margin. Xiaomi business curve confirms. Production brings the least money, and branded services with advertising, which can be categorized as marketing, the most. And judging by the distribution of funds received from the sale of shares, Xiaomi is moving in the right direction.

Simcomat

Update. There is an inaccuracy in the text: In autumn Simkomat will be sold not only in Spain, but also in Russia, Saudi Arabia, Cameroon and other countries. In Russia, SIMKOMATs will be available for purchase in September.

Unexpectedly, it turned out that July 18 is Tetris Day. In 1985, the first electronic device for the game was released. The Simkomat company decided to use this date as an occasion to hold a small press conference in its office and show a new version of the terminal for issuing SIM cards.

I'm indifferent to Tetris, but I've never seen Simkomats live before. The old one stood out for its impressive dimensions and weight of 200 kilograms.

Against its background, the new one looked stylish and even slightly futuristic. A small terminal, together with a stand weighing only about 30 kilograms. Can be attached to the wall.

The main idea of ​​the simcomat is to automate the issuance of carrier SIM cards. If the old device was quite complicated: you had to sign a contract, put it in the scanning slot and perform many more actions, then the new version works much easier. Imagine a situation. A trip on vacation, you need to buy a local SIM card upon arrival. In the case of a SIM ATM, everything is simple: you need to select the tariff you like on the operator’s website in advance, enter the data, pay, and upon arrival go to the device, attach the issued QR code to the scanner, receive a SIM card and go on about your business. The code only works once. Everything works simply and elegantly.

If at home there was no time to go to the operator's website, then everything can be done on the spot. Simkomat distributes Wi-Fi. At the moment, 150 cards fit into one simcomat. When the cards run out, the device sends a notification to the owner. The price of the device is $2,000. And, according to the developers, it will pay off within 3 months.

Simkomat was designed and implemented by Izhevsk businessman Artem Subbotin. Unfortunately, so far it is not known about work in Russia, but we have already signed a contract with the Drimsim operator, which specializes in the sale of tourist SIM cards. Already in the fall, simcomats can be found, for example, upon arrival in Spain.

However, in addition to SIM cards, the device has great potential in other areas. In fact, this is a device that can issue any cards of a standard size - bank cards, travel cards, passes, etc. All interaction takes place through the application in the phone. Relatively speaking, a guest pass system in a business center may look like this: the inviting party sent a QR code, received a pass, and entered the territory.

I am very pleased that this is a Russian invention. The device turned out to be interesting, the scenarios for its use do not look far-fetched, so I am sure that there will be a demand for a simcomat. And, of course, we wish you good luck.

Samsung and 2018 Q2 results

Samsung has not yet officially announced the results for the second quarter of 2018, but there are already gossip that there will be no records, the Galaxy S9 is selling desperately badly, and profits are falling, and in general it is time for the Korean manufacturer to curtail the bag. But, as Mark Twain said in response to an unexpected obituary in the New York Journal: "The rumors of my death are somewhat exaggerated."

So Samsung, like Uncle Fyodor from the Prostokvashino cartoon, can safely write in the second quarterly report: “My dear investors. I live well, just wonderful.” And a picture:

PwC auditors would be surprised if they saw this in the official report. Unfortunately, now everyone is obsessed with records and high-profile figures. The last 4 quarters have been record-breaking for Samsung, each better than the last. And the first quarter of 2018 looks frankly indecent in general - 15.64 trillion KRW (14.582 billion US dollars). The second quarter is expected at KRW14.8 trillion, up 5% year-on-year, but below the previous record. For some reason, it is believed that Samsung's main profit comes from phones and, of course, only flagships.

Probably, they reason this way by analogy with Apple, for which the iPhone remains a key product. Please look again at the "smiling curve" from the text about Xiaomi. Its top points are the dimples on Samsung's chubby cheeks, as the manufacturer has key sources of profit there. Below is a chart of the company's operating profit for the two leading segments. And the last record quarters are not related to phones, but to the crazy growth in sales of semiconductors, namely memory. There is a shortage of quality solutions on the market.

Samsung memory is used in many devices on the market, and Apple is one of the key customers, by the way.

However, markets are always cyclical. Increased demand with a shortage of supply led to higher prices, as well as increased investment in production and expansion of current capacities, which, in turn, leads to an increase in supply, and hence lower prices. Then the market will enter a new round, and everything will repeat itself. These are predictable phenomena, and there is nothing unusual about them.

Well, the phones were sold and are still being sold. I don’t see any stunning figures and records there.

Q3 2016 is a review of Note 7. By the way, pay attention to the strength of the company: profit has gone almost to zero, but not negative.

According to Samsung reports, more curiosity is why their consumer electronics is not only not growing, but even slightly subsided. However, this is a matter for a separate article.

In conclusion, we can say that you should not pay attention to the little things. That Apple and Samsung are firmly on their feet, and a little volatility in sales does not play a role. You should look at the company as a whole.

Conclusion

There are a lot of interesting events going on in the market. Thanks to the entry into the market, Xiaomi can now be watched more closely, as the status obliges to issue reports. Of course, it’s interesting what Apple is doing behind closed doors. I joked about the security system in the post, but seriously, I respect how the company manages to keep a project that employs 5,000 people in complete secrecy.

I hope that the guys with SIMKOMAT will succeed and the issuance of SIM cards from the tedious process will become easy and fast.