The ipod index

The ipod index
Reuters (4 October 2007)

CANBERRA (Reuters) - In the market for a new video iPod? Head to Hong Kong or, if Europe-bound, stop off in Switzerland. But best avoid Brazil.

One of Australia's biggest banks, the Commonwealth Bank, has used the latest version of Apple's music player -- the slimline 4GB Nano -- to compare global currencies and purchasing power in 55 countries.

Along the lines of the Big Mac index launched 20 years ago by The Economist magazine, the survey prices the recently launched 4GB Nano in U.S. dollars and found Brazilians pay the most for an iPod, shelling out $369.61.

That was well above second-placed Bulgaria, where locals and visitors pay $318.60 for the player, which Apple recently introduced at the same price as the older, less-capable Nano.

"It's not often that you get something for nothing. Even in technology land where there are constant improvements in product quality, it ranked as a big deal," Craig James, chief equities economist at Commonwealth Bank, told Reuters.

Hong Kong was the cheapest place to buy a Nano at $148.12, while the United States was second cheapest at $149, followed by Japan ($154.21), Taiwan ($165.82) and Singapore ($167.31).

Australia, where the local dollar has surged to 18-year highs, jumped 11 spots into 8th place with the Nano costing $175.42, cheaper than Germany ($211.62), France ($225.82), South Korea ($180.60) and even China where the machine is manufactured.

Within the euro zone, the Nano's price also differed, with retailers in Greece offering the cheapest deal.

Purchasing power parity surveys compare the prices of goods in different countries and at their simplest level can help show whether one currency is undervalued against another.

James said the results underscored the falling U.S. currency against almost all others around the world.

"It also highlights the effect of tariffs and taxation in countries. The Brazilians, the Argentinians, are going overseas probably to do their shopping," he explained.

"Its clear from the changes in the Apple iPod range that price deflation is alive and well in the technology space. It is a near-nirvana situation for consumers."

The CommSec iPod Index, based on October 2007 prices in U.S. dollars.

1. Brazil $369.61

2. Bulgaria $318.60

3. Argentina $317.45

4. Israel $300.80

5. Peru $294.08

6. Chile $294.06

7. Malta $293.83

8. Egypt $269.10

9. Romania $266.60

10. Uruguay $260.00

11. Turkey $256.12

12. Hungary $254.50

13. Azerbaijan $252.11

14. Serbia $249.14

15. Croatia $245.41

16. Czech $242.54

17. Slovakia $234.13

18. Estonia $226.67

19. South Africa $226.60

20. Finland $225.82

21. France $225.82

22. Russia $220.32

23. Norway $220.20

24. Sweden $215.35

25. Belgium $211.62

26. Austria $211.62

27. Italy $211.62

28. Portugal $211.62

29. Ireland $211.62

30. Germany $211.62

31. Netherlands $211.62

32. Denmark $209.26

33. UK $201.92

34. Mexico $201.87

35. Cyprus $201.85

36. Luxembourg $201.12

37. Poland $200.52

38. Philippines $198.39

39. Spain $197.42

40. Greece $196.51

41. Switzerland $195.43

42. India $183.47

43. Malaysia $181.82

44. Korea $180.60

45. New Zealand $180.58

46. China $179.63

47. Pakistan $179.48

48. Australia $175.42

49. Thailand $174.89

50. Canada $169.68

51. Singapore $167.31

52. Taiwan $165.82

53. Japan $154.21

54. U.S. $149.00

55. Hong Kong $148.12

Source: CommSec, Apple

Note that pricing for some countries hasn't adjusted yet to the new model

Nokia Reports 85% Jump in Third-Quarter Profits

Nokia Reports 85% Jump in Third-Quarter Profits
From Teleclick.ca (21 october 2007)

The world’s biggest cell phone manufacturer, Nokia, announced an 85% leap in its third-quarter profits yesterday, beating the expectations of most market analysts.

The Finnish handset maker generated profits of €1.56 billion ($2.23 billion), or $0.40/share, in its summer quarter, up from €845 million in the same period last year. Total revenue swelled 28% to €12.9 billion.

The bulk of Nokia’s gains are taking place in developing markets such as India and China, where hundreds of thousands of mobile phones are purchased every day. This has given the company a larger worldwide market share than its three biggest competitors – Samsung, Motorola, and Sony Ericsson – combined.

“The profitability of their basic phones is at an amazing level,” commented research analyst, Jussi Hyoety, of Glitnir Bank in Helsinki.

“We are taking market share wherever there’s growth,'’ explained Nokia’s Chief Financial Officer, Rick Simonson, in an interview.

The company’s shares climbed 2.5% yesterday to close at €26.25 in Helsinki. The stock has surged more than 70% so far this year.

BoT increases growth forecast

BoT increases growth forecast
Bangkok Post (20 October 2oo7)

The Bank of Thailand yesterday hiked its 2007 economic growth forecast to between 4.3% and 4.8% from earlier projections of 4% to 5% as exports have exceeded initial projections.

But Suchada Kirakul, an assistant central bank governor, noted that oil prices, which have jumped sharply this month, would remain a risk to growth in the fourth quarter and next year.

The central bank projects inflation at 1.8% to 2.3% this year and 1.5% to 2.8% in 2008, slightly above previous forecasts.

Core inflation, which excludes energy and raw food prices, is expected to stay between 0.8% and 1.3% this year and between 1% and 2% in 2008.

The central bank also maintained its economic growth forecast for 2008 at 4.5% to 6% in its latest Inflation Report.

"The new economic forecast remains close to the previous one as the middle of the new forecast is close to 4.5%. Growth should be slightly lower if the risk for oil prices increases," Mrs Suchada said.

She said the new forecast was based on an assumption that Dubai oil prices would average $68 per barrel in the fourth quarter and $64.6 per barrel for 2007.

Economic growth this year could drop to 4.4% if oil prices in the fourth quarter averaged $75 per barrel, and decline to 4.3% if oil prices average $80.

Mrs Suchada said the central bank expected exports to grow by 13% to 15% this year, up from earlier forecasts of 12% to 15% growth.

Domestic consumption projections, however, were cut to between 2.5% and 3.5% for 2007 compared with earlier estimates of 3.5% to 4.5%. Private investment growth projections were also cut to a range of 3.5% to 4.5% for the full year compared with earlier estimates of 7.5% to 8.5%.

The central bank expects the current account surplus to reach $8.5 to $9.5 billion this year, up from earlier estimates of $7 billion to $9 billion.

Ms Suchada said economic growth for 2008 was expected to reach 5.3% if oil prices ease, but could slow to 4.9% if prices continue to increase.

She said economic growth in the second half of the year was expected to improve from the first half thanks to strong exports and improving business sentiment.

"We earlier expected exports to slow in the third quarter, but this has not been the case. Exports in August and September remained robust," Ms Suchada said. "We have also revised up our forecast for the manufacturing sector. But this is from businesses increasing their inventories."

Ms Suchada said risks for the new inflation forecast include higher prices for oil, farm products and cooking gas.