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One Response to “Financial News 8/9/12 – Starbuck’s Deal With Square Inc, Google leads Smartphone Market”

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   09. Aug, 2012

   —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.