Would you pick the iBank?

I'm an Apple admirer but not sure I would. As a user of iTunes I guess you could say I am banking with the tech giant. Sort of. But at the same time I'm a bit of a stick in the mud when it comes to my bank and not sure if I would be willing to transfer everything over to them. I've been a NatWest customer for 25 years or so and during that time have only once seriously considered switching to a rival. I was a victim of card fraud and was not impressed by NatWest's shall we say casual attitude to the situation. But that's for another blog post...

There are two reasons for posing the above question. Firstly, Apple's staggering cash reserves, sparking talk of their next moves. And secondly, new research on the potential of Apple to break into the banking sector. The survey was carried out by marketing and research consultancy KAE, in conjunction with Toluna, a specialist in online polls, surveys and opinions. Toluna’s research panel community of four million consumers, collected data from over 5,000 respondents, across the US and UK. 

The press release landed in my inbox with the subject heading 'Banking with Apple could pose serious challenge to high street.' Wowser, I thought, this sounds interesting! But turns out the research revealed that currently just one in ten people would consider banking with Apple. Of those who are already customers, a mere 43 per cent would switch to the company for their day-to-day banking needs. Not exactly the sort of thing which justifies excitable prose. 

Certainly, Apple has a good base from which to launch an assault on the banking sector: an impressive track record in terms of  cross-selling products, a strong retail presence and an affluent, hugely loyal customer base, to name but three strengths. But, as things stand, they haven't thrown their hat in the ring and, even if they had, consumers are wary of making the leap from traditional banks. And rightly so. We're dealing with the great unknown here. Your money and your music are two completely different things.   

The aforementioned press release contained the comment: "it wouldn't take long for Apple to become one of the most profitable consumer banks in recent times." Really? Or how about: "the boldness of the next Apple move will inspire and terrify in equal measure." Please.

There's a serious discussion to be had re. tech giants like Apple, Amazon and Facebook posing a threat to the monopoly enjoyed by the banks. Spurious press releases might make for cheap headlines but ultimately they undermine the debate.

Apple surges, Yahoo slumps

Apple are one of the few sure things in these uncertain economic times but even they surpassed themselves this week.

Shares soared after strong demand for iPhones and iPads lead them to report a 73 per cent rise in quarterly revenue to $46.33 billion, comfortably beating Wall Street analyst estimates. Net profit rose 118 per cent to $13.06 billion.

In stark contrast, Yahoo reported a drop in net revenue and profit for the fourth quarter, just days after co-founder Jerry Yang resigned from the company. New chief executive Scott Thompson said Yahoo needs to "do better" and "get innovative products that matter into the market." He joined from PayPal (where he was president) earlier this year, an appointment which raised many eyebrows, not least at the online payments outfit with John Donahoe, interim president, describing his resignation as a shock.

There's a scene in the Willy Russell play, Educating Rita, where university lecturer Frank asks his student Rita to leave England behind and move to Australia with him, remarking: "It would be good to leave a country that's finishing for one that's beginning." That quote came to mind when I first heard of Thompson's departure from PayPal, although the reverse is true in this case. That is, leave a company where business is booming and the future holds all kind of possibilities and join one that has all the signs of a sinking ship.

BTW, our friends at Retail Systems have provided a glimpse into PayPal's future - the move by the company into the bricks and mortar world.

Android on the up

Interesting to see that, during the period July - September, Samsung overtook Apple to become the world's biggest seller of smartphones.

This obviously doesn't account for the launch of the iPhone 4S, but it's still tempting to paint this not as a blip but rather as Android taking control of what has become an increasingly bloody battle. 

I say this in relation to the recently released Steve Jobs biography, which contains the revelation that the Apple boss was furious at what he saw as Google pilfering features from the Apple iOS software. Jobs reportedly vowed to do everything within his means to destroy Android after last year seeing features in HTC’s Android 2.1 phones.