IN THE PAPERS
In The Papers 30 November
30-11-2009
by Sylvia Leatham
Smart economy policy is flawed: economist | Promethean prepares for IPO
The Irish Examiner says that the Government's smart economy policy is fundamentally flawed and lacks ambition, according to UCC economist Eoin O'Leary. Speaking about the Government's objective to target high-tech sectors and source innovation by commercialising science developed in universities, O'Leary said: "This policy is fundamentally flawed in assuming that a government or its agencies can decide on the sectors and businesses in which Ireland will be competitive and that academics can play a central role in business innovation." He advised that "[a] successful strategy would result in resilient clusters, in which as businesses close down[…] new start-ups emerge organically to replace them. Typically, this is not what has happened when companies such as Dell in Limerick close down."
The Financial Times says that Promethean, the UK maker of interactive whiteboards, is planning an initial public offering that values the company at STG400 million to STG500 million. Promethean makes interactive whiteboards, which are fast replacing traditional chalkboards in schools, as well as other electronic devices such as digital slates, which students can use to respond to the teacher. The flotation plans would make a paper multi-millionaire of Tony Cann, Promethean's founder. Smart Technologies, Promethean's larger Canadian-based rival, is also considering an IPO.
According to the Wall Street Journal, Barnes & Noble is to start shipping its Nook electronic book reader on 30 November, but the company said demand has been so strong that it won't have any available for sale or demonstration purposes in stores until 7 December. The bookstore retailer had originally said it would have the Nook in certain stores on 30 November. Mary Ellen Keating, a spokeswoman for Barnes & Noble, said that "due to high demand, we are prioritising pre-orders so that those people who ordered before 20 November will receive them for Christmas. As a result, there will be a week delay in shipping the Nook to stores."
The paper also says that 'Black Friday', 27 November, saw a greater use of mobile phones by consumers to make purchases in the US, according to industry data from Dow Jones. From a very small base last year, mobile e-payments through PayPal surged nearly 650 percent. PayPal is used by about half of the top 100 online retailers, including Wal-Mart Stores, Best Buy and Sears Holdings. Searches from mobile devices jumped from around 5,000 on Black Friday in 2008 to roughly 200,000 this year, according to Siva Kumar, chief executive of TheFind.com, a product search engine.
The paper also says that South Koreans got their first taste of the iPhone on Saturday as the device made its long awaited debut in the country. The smartphone got a late start in South Korea due to regulatory hurdles and tough negotiations between Apple and a local telecoms firm. At a launch party, about 850 South Koreans took possession of their new iPhones. The first recipient of the iPhone had queued for more than 26 hours outside the arena where the event took place.
The Sunday Tribune says that about half of Irish companies who have suffered data loss due to flood damage could go out of business. According to Databackup.ie, insurance companies will cover hardware and equipment, but it is not possible to cover the loss of data. Businesses have lost back-ups too, due to storing them in the same building.
The Sunday Business Post says that the development of digital terrestrial television (DTT) in Ireland is at a "make or break" stage, with the One Vision consortium seeking "more financial leeway". The consortium, which includes TV3 and Eircom, has said a guarantee of EUR20 million sought by RTE is an obstacle at the moment. The broadcaster is seeking the guarantee from One Vision to ensure that the commercial partners will stick with DTT if it builds the network for more than EUR100 million. The consortium is also seeking a pledge from the Government to invest in the promotion of the DTT switchover.
Separately, the same paper reports that radio communications firm EMR has built a national digital microwave network that will form part of the DTT infrastructure, in a EUR4.5million deal with RTE Transmission Network. The system provides a high-speed link between 24 radio and television broadcast sites around the country and studios in Dublin, Cork, Limerick, Sligo and Donegal. The company says the deal with RTE has led to a number of significant new contracts.
The same paper reports that Irish IT retailer Click.ie has expansion in mind, and is targeting all 26 counties within three years through a new franchise network. The company, which has bricks-and-mortar stores as well as an online store, will also open more of its own stores. The company recently opened its ninth store at the Dundrum Town Centre, and plans to increase that to between 12 and 15 in the coming years, with up to 14 franchises also in mind. Click.ie employs 65 people and recorded turnover of EUR12 million last year.
Finally, the paper reports that Belfast-based Audio Processing Technology saw its revenues rise 28 percent last year. Accounts show turnover reached STG5.1 million in the year ending 31 December 2008, with the company growing its business in most of its major markets. In the US and Canada, sales rose from STG1.4 million to STG2 million during the year; in Europe, sales increased from STG1.2 million to STG1.9 million. In the domestic market, sales increased from STG285,000 to STG470,000. Asia, however, saw revenue fall from STG2.1 million to STG1.5 million. Increased costs, meanwhile, led to a STG337,000 net loss for the year.
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