Apple Net Gains 88% as iPod, Mac Sales

From last day's Wall Street Journal, Apple Inc. reported its profit increased 88% to $770 million and revenue jumped 21% to $5.26 billion because the lower costs on components like flash-memory chips for its iPod products. The company's shares surged 6.3 percent in extended trading. With sales growing 36 percent—more than three times the industry growth rate, the Mac is gaining market share.

Why apple can succeed? Apple started the personal computer revolution in the 1970s with the Apple II and remade the personal computer in the 1980s with the Macintosh. Today, Apple leads the industry in innovation with its computers, OS X operating system and iLife and professional applications. Apple also spearheads the digital media revolution with its iPod portable music and video players and iTunes online store, and will enter the mobile phone market this year with its revolutionary iPhone. Apple never stop looking for innovation to differentiate its products and lower its cost to catch up more market share and profit, it always lead the market trend and the industry.

Whether Time Warner Should Reduce its Cable-TV Holdings

From an article of The Wall Street Journal, April 17th, the world's biggest media company- Time Warner Inc. is considering whether it should substantially reduce its cable-TV holdings over time. Cable is the biggest contributor to profits in Time Warner. Time Warner 2006 revenue got $11.8 billions in Cable System and $10.3 billions in Cable Networks, which counted about 48.3% of its total revenue. Since it already owns AOL, some executives in Time Warner wonder whether it should get out of cable and double down on the Web by buying another major internet company. This issue will be put at a meeting next month before the board.As we know, when the internet emerges as a viable venue of watching TV, the long-term future of cable is murkey. Of course, a totally exit is the least case to be adopted. If Time Warner gradually reduce its most stake, say around 80%, in Time Warner Cable Inc. through acquisitions would be a good idea. Getting rid of big part of its cable holdings will make Time Warner more reliant on its role of a provider of filmed entertainment and print and web content. The fact is whether Time Warner get rid of or reduce a majority of the cable hodlings, it is a sign that the cable industry is shifting. It would free up resources for more investment in the web. Whatever Time Warner will do, it should try the best way to build their shareholders' value.