Coca-Cola and PepsiCo spend enormous amounts of money on innovation, advertising and marketing, and on strengthening their distribution network. It would be difficult for a new entity to make the substantial capital investments required to compete with these firms.
Soft-drink makers continually invest in branding. In 2013, Coca-Cola and PepsiCo spent $3.3 billion and $3.9 billion, respectively, on advertising and marketing activities.
Market intelligence firm Euromonitor International estimates the middle class around the world will include 1.5 billion households by 2020, a 25% rise over 2012.
US consumption spending accounts for over two-thirds of the country’s gross domestic product. A favorable trend in consumer spending on non-durable goods is a positive indicator for the non-alcoholic beverage industry.
Coca-Cola and PepsiCo’s wide distribution network gives them significant pricing power. Carbonated soft drinks have similar prices due to the intense competition in the industry.
Soft drinks contain considerable amounts of sugar, which is a form of carbohydrate. Consumption of excess sugar releases a hormone called dopamine, which induces pleasure in the brain. Caffeine, another key ingredient, stimulates the nervous system.
The non-alcoholic beverage industry broadly includes soft drinks and hot drinks. In the US, soft drinks, or liquid refreshment beverages, lead food and beverage retail sales. In this series, we’ll focus on the soft drinks market.
Qualcomm’s (QCOM) stock performed poorly compared to the company’s peers in the semiconductor industry. As the chart below shows, Qualcomm’s stock has increased by only 2% year-to-date.
Earlier this year, Qualcomm (QCOM) had committed to returning 75% of its free cash flow to investors in the form of stock repurchases and dividends.
These devices include connected home devices such as air conditioners, washers, and refrigerators, security systems such as alarms and cameras, and energy devices such as thermostats.
Qualcomm (QCOM) recently acquired Wilocity to boost its portfolio of mobile chipsets. Wilocity operates high-speed wireless technology WiGig, which works at a higher frequency and promises faster data speeds.
Qualcomm expects it to further decline between 3% to 5% in fiscal 2015. So why is Qualcomm expecting its chipsets average pricing to continue to decline? Let’s find out.
Earlier in this series, we’ve been discussing Qualcomm’s (QCOM) dominance in the mobile chipset business. Such is Qualcomm’s dominance that Texas Instruments (TXN) had to exit this business in 2012, while Broadcom (BRCM) exited earlier this year.
In the previous part of this series, we discussed the potential growth prospects of high-speed LTE technology. Qualcomm (QCOM) is set to benefit the most from this transition simply because it dominates the LTE chipset market.
Telecom carriers across the world are in the middle of replacing their 2G/3G technology with the high-speed LTE technology. This transition is almost complete in major markets such as the US, Korea, and China.
According to a report from Strategy Analytics, as of 2Q14 and as the chart below shows, Apple’s share in this market was 26%, with Intel at 19% and Qualcomm at 17%.
Snapdragon is a mobile processor that provides advanced applications, graphics processing capabilities, and voice and data communication to mobile phones.
The majority of the conference call to announce Qualcomm’s (QCOM) 4Q14 earnings focused on the issues that the company’s facing in China.
Analyzing Community Health Systems (CYH), which is a for-profit hospital, in relation to other for-profit hospitals can help you identify lucrative investment opportunities.
As a part of its growth strategy, Community Health Systems (CYH) acquires two to four hospitals, mostly municipal or non-profit hospitals, per year.