Financial News 8/9/12 – Starbuck's Deal With Square Inc, Google leads Smartphone Market


Financial News 8/9/12 – Starbuck’s Deal With Square Inc, Google leads Smartphone Market

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    —Loyal Starbucks customers have grown accustomed to their local
    baristas remembering their name and drink order down to the caramel
    drizzle. Now customers can soon expect this same type of service from
    the cash registers, thanks to a new deal with Square Incorporated,
    that will pressure traditional payment processors. Square’s
    technology will eventually allow Starbucks stores to use proximity
    sensors that will detect customers using the Square smartphone app as
    soon as they walk in the door, enabling baristas to accept payments by
    obtaining only the customers name. The charge will then be billed
    directly to the Customers credit card via the Square app. In the
    meantime, while these new technologies are being tested and
    implemented in retail locations, customers will notice no change in
    the payment process, although Square’s technology will be seamlessly
    integrated into Starbucks Point-of-Sale hardware. Although, the
    convenience factor is a plus, this may raise some security concerns,
    as customer credit card information will be linked and stored in the
    app.
    —The battle between Apple and Google gets even more heated as
    purchases of Google’s Android smartphone captured nearly seventy
    percent of the global market last quarter. In comparison, Apple’s
    market share was a mere seventeen percent. In a report issued by IDC,
    the company cites Samsung as the main driver for Android phones sold
    in the second quarter, representing forty four percent or more than 46
    million of the 105 million Android devices sold. As we reported
    previously, Apple and Samsung are currently in an all out legal war,
    with Apple accusing Samsung of copying its iPhone design. With Apple
    and Samsung representing a combined 85% market share the two
    powerhouses have destroyed the old favorite, Blackberry devices from
    Research In Motion, which now represent less than 5% of global market
    share.
    —Now we’ve all heard the term rent to own, but have you ever
    wondered about the possibility of own to rent? Citigroup has launched
    a pilot program for struggling homeowners to keep them out of
    foreclosure by allowing them to become renters. The program is being
    described as a way to aid homeowners stuck with properties they can’t
    afford. To be eligible for the program homeowners must be more than
    four months past due on their mortgage payments. Citigroup has
    enlisted Carrington Capital Management and its sister mortgage company
    to run the program where they will negotiate with the owner to
    determine a manageable monthly payment and length of lease. The pilot
    program will aid 500 homeowners in Arizona, California, Texas,
    Florida, Nevada and Georgia. We applaud Citigroup’s efforts in coming
    up with an unorthodox strategy to take the mortgage crisis head on and
    stop the massive foreclosures leaving many without options.

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