Word: profit
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...selling premium brand. In keeping with BMW's unwritten age limit of 60, production boss Reithofer will replace CEO Helmut Panke on Sept. 1, the day after Panke's 60th birthday. Reithofer obviously has a tough act to follow, since the company expects to top its 2004 record net profit of $2.7 billion. Reithofer has been the keeper of BMW's flexible production system, considered a model for the car industry. The former head of BMW's South Carolina plant, he is more than familiar with the U.S. market, and he has plans to increase share there. The challenge...
...will not [lose focus] of the primary goal: to alleviate the number one source of health problems and disease on this planet, which is water-borne pathogens... it may be that the fastest way to do that isn't through a non-profit, but to do a for-profit piece and then double-use the knowledge, the technology and the tooling. If we need to do that, and it speeds things up, not slows them down, we'll do that...
...along with a host of other expenses. According to Chinese government statistics, the average annual salary in Shenzhen has surged by about 40% since 2000 to more than $4,000 last year. That's twice the average wage in other major cities like Chongqing. Higher costs are undercutting the profit margins of labor-intensive industries that have been the backbone of Shenzhen's economy. Greg Gong, CEO of Taiwan-based Further Tech, opened a factory in Shenzhen three years ago to make consumer-electronics gear, but he's already getting squeezed. Gong says his costs are rising by 10% annually...
...Toshiba all but stepped away in 2004. How, then, are other digital-camera vendors going to eke out a living? It won't be easy: two weeks ago, Kodak reported a $282 million second-quarter loss, almost twice that for the same period last year. Low industry-wide profit margins mean that competing on price will be difficult. Consumers can already buy a decent camera for as little as $80. Although iSuppli, a California-based research firm, says the cost of producing a camera will continue to decline, those cost reductions won't keep pace with plummeting consumer prices...
...Alpha. Skeptics say that dslrs are a false hope, because most people consider them too complicated, big or pricey. IDC pegs them at around 4% of the market today, growing to only around 5.5% by 2010. Fujifilm, which in January overhauled its camera division to offset declining profits, is avoiding entry-level dslrs altogether because, notes Fujifilm U.K.'s director of photo products Adrian Clarke, the market is "fiercely competitive." Instead, Fujifilm is banking on the printing business, a strategy that stems from its heritage as a film provider. Sales of its "minilab" printing equipment to British retailers such...