Displaying items by tag: Prices

Tesla to increase prices and keep several stores open

Written on Tuesday, 12 March 2019 07:59

Tesla is planning to increase prices by 3% on all cars except for the new mid-market Model 3.

Recently, Tesla said it would close down several stores in order to pay for a cut in the price of the Model 3 in the US to USD $35,000. The amount of stores to be closed down were not previously specified but Tesla has said that it now plans to close down “about half as many” stores as it makes half the cost savings.

The car manufacturer stated that if more stores were to be kept open, then the prices of their vehicles would have to increase by an average of about 3% worldwide.

Tesla has 378 stores and service locations worldwide but did not identify which ones would be closed.

A company spokesperson stated: “Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced as we continue to evaluate them over the course of several months.”

Tesla is planning to conduct online purchases which they claimed would take just a few minutes. The company said that buyers in store will be shown how to buy a Tesla online through their smartphones. They previously stated that if online sales were to increase, it would cause prices to decrease by an average of 6%.

In an attempt to convince customers to purchase their cars online, they said that it had a “generous returns policy” whereby the customer will be able to return a car after 1,000 miles or within seven days. This has been done to significantly decrease the need for test drivers.

Tesla has also said that some of its recently closed stores that used to be in “high visibility locations” will be reopened but with smaller amounts of staff and less cars.

The previous year has been “the most challenging” year in Tesla’s history as a business. The company has been attempting to cut costs as much as possible. In January, they announced a 7% job cut, equating to 3,000 job cuts.

Back in January, company founder Elon Musk stated that the company’s cars were still “too expensive for most people”.

He has been subject to a great deal of controversy over his tweet. Last month, he was held in contempt of court upon the request of the US regulator, the Securities and Exchange Commission, for violating a settlement month which was aimed at limiting his usage of social media.

This issue is due to his previous tweets about the company’s financial situation and some tweets from august last year in which he claimed he secured funds to make the company private.

Mr Musk has until today to officially respond.

Published in Finance

Consumer watchdog blasts proposed merger of US operators

Written on Thursday, 07 February 2019 10:17

A leading US consumer watchdog has voiced their concerns regarding the details of the proposed merger agreement between mobile operators T-Mobile US and Sprint.

Published in Telecom Operators

Blow for Chinese smartphone maker Xiaomi as global VP resigns

Written on Wednesday, 25 January 2017 06:19

Chinese smartphone maker Xiaomi has been dealt a fresh blow following the resignation of their charismatic global VP Hugo Barra. Barra has overseen Xiaomi’s incredible growth from an in-house start-up to market leader, but his decision to depart from the company represents the struggles currently afflicting the organization.

In the last two years in particular have seen Xiaomi faced with several obstacles as competition in the already saturated smartphone market intensifies on a global scale.

Barra joined the start-up over three-and-a-half years ago from Google, but he publicly announced via his Facebook account that his decision to resign was due to a much-needed break, and he also indicated that he will be embarking on a new adventure in Silicon Valley, but not disclose exactly what that adventure will entail.

In the Facebook post, the outgoing Xiaomi Global VP said, “We turned India from a dream into Xiaomi’s largest international market with $1 billion in annual revenues. We expanded into Indonesia, Singapore, Malaysia, and more recently 20 other markets including Russia, Mexico and Poland and we teamed up with Google to launch our first official product in the US.”

Xiaomi have confirmed that SVP Xiang Wang will oversee global operations in light of Barra’s departure from the company which will be after the Chinese New Year holidays in February.

Xiaomi suffered a dismal 2016 with the total shipments falling drastically – which led to its market share to plummet and its overall valuation to plunge. The fast-rising smartphone maker was once valued at a whopping $46 billion and was recognized and identified as the world’s most valuable start-up.

However, that valuation is now reported to be in the region of just $3.6 billion following the release of the smartphone ranking after Q2.

In November, Barra stated that he was confident the company would be largely unaffected by the sharp drop in smartphone sales because its profitability is more dependent on smart home devices and its software ecosystem.

Management at Xiaomi chose not to release any financial information – but is confident of returning to former glories when the privately-held firm was, for a brief spell, the third largest smartphone maker in the world. During those dizzying times, the Chinese company saw its market share double year-on-year to 5.6% by Q3 in 2014.

In the same year it was the top-selling smartphone maker in China from April to July, with its market share peaking at 31.6 percent. Xiaomi attempted to diversify its product line and expanded its range of home devices, which include rice cookers and air and water purifiers. Sales of smart home devices were forecast to double to CNY10 billion ($1.5 billion) last year.

Published in Devices