Business Highlights

Published on NewsOK Modified: October 20, 2014 at 5:28 pm •  Published: October 20, 2014
Advertisement

___

Not so fast cordcutters_cable's not going anywhere

NEW YORK (AP) — Cord cutters rejoiced last week after HBO and CBS announced plans to sell stand-alone streaming services, a move that cable and satellite television providers have resisted for years. Customers tired of paying big fees for hundreds of channels they never watch just to have access to a few favorite shows might be expected to start cancelling cable service in droves. Get Netflix, throw in HBO, add a network here and there — why would anyone sign up now for cable?

Well, don't sound the death knell for cable companies yet.

Some would-be customers may balk when they see just how much paying a la carte actually costs. Stations that offer services a la carte will have to pay for marketing that the cable and satellite companies usually cover. Fewer eyeballs on live TV could mean less advertising revenue, since online ads are generally cheaper, and that will boost the network's cost of running the channel. And smooth streaming costs money.

___

Apple reports record 39.3 million iPhone sales

SAN FRANCISCO (AP) — Excitement for Apple's new iPhone 6 and 6 Plus models drove sales of a record 39.3 million iPhones in the last quarter, boosting the company's earnings and revenue well above expectations.

All told, the company sold $23.7 billion worth of iPhones, beating the $21.5 billion in sales expected by analysts polled by FactSet. Apple's signature smartphones are the company's biggest source of revenue and profit.

"We had a really, really good quarter," Chief Financial Officer Luca Maestri told The Associated Press. He also credited strong demand for the company's Mac computers and its online app store.

But the company didn't do as well with its iPad tablets. Apple said it sold 13 percent fewer iPad tablets than it did a year ago. That follows an industrywide decline in tablet sales. Still, the company reported even lower iPad sales than analysts had expected.

___

US agency warns car owners to get air bags fixed

DETROIT (AP) — A potential safety crisis over defective air bags widened Monday as the U.S. government issued an urgent plea to more than 4.7 million people to get their cars fixed.

The inflator mechanisms in the air bags can rupture, causing metal fragments to fly out when the bags are deployed in crashes.

Safety advocates say at least four people have died from the problem and there have been multiple injuries. They also say more than 20 million vehicles in the U.S. are equipped with the faulty air bags.

The National Highway Traffic Safety Administration warned people whose cars have been recalled during the past two years for faulty air bag inflators to take them to dealers right away. The inflators are made by Takata Corp., a Tokyo-based supplier of seat belts, air bags, steering wheels and other auto parts. So far, automakers have recalled about 12 million vehicles worldwide because of the problem.

___

IBM 3Q disappoints as it sheds 'empty calories'

NEW YORK (AP) — IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile services. Shares fell more than 7 percent as investors sold off sharply and the stock dragged the Dow 30 into the red.

Is it too late for IBM? Or can Big Blue weather the competition as it transforms its business for the cloud?

Remaking itself is something IBM has done many times through its long history. Starting more than a century ago in punch-card tabulators and time clocks, it grew to encompass the giant mainframe computers and Selectric typewriters of the 1960s and launched its revolutionary personal computer in the 1980s.

___

Survey: Pay raises rarer despite strong US hiring

WASHINGTON (AP) — U.S. businesses were much less likely to boost pay in the third quarter than in previous months, even as hiring remained healthy, a sign that wage gains may remain weak in the coming months.

A quarterly survey by the National Association for Business Economics found that only 24 percent of companies increased wages and salaries in the July-September quarter. That's down from 43 percent in the April-June quarter and the first drop after three straight increases.

Continue reading this story on the...