News Article 20-08-2020

Title: Apple's next trillion won't come so easily

Background: Apple has become the first US company to hit a market cap of $2 trillion. It’s an
arbitrary milestone but a significant one all the same, testimony to the pandemic-defying
performance of the iPhone maker. It’s also been just two years since Apple hit a $1 trillion market
cap, meaning the company has essentially doubled in value in just over 24 months.

Summary:

1. Apple did post impressive June quarter financial results last month on the back of strong sales, a
perfectly timed lower-cost iPhone launch and a boost from government stimulus.

2. The success of its upcoming slate of products isn’t a sure thing. The company is going to have to
convince consumers to buy higher-priced $1,000 iPhones when it launches new 5G-enabled models.

3. And these more expensive phones may be a tough proposition with tens of millions of Americans
facing job insecurity.

4. There will be new apps anytime soon that will need the faster fifth-generation wireless speeds,
making phone upgrades less compelling.

5. According to a Bloomberg News report last week, it doesn’t look like there will be much
innovation coming from Apple on the services front.

6. Apple is facing increased regulatory scrutiny over its dominant position in the smartphone market.

Future Implications:

1. If any of the global regulators clamp down on Apple’s business practices, it could negatively
impact its profitability.

Link: https://www.livemint.com/opinion/columns/apple-s-next-trillion-won-t-come-so-easily-
11597883661059.html

Title: Reliance-Netmed deal to bring attractive returns for Sistema Asia Fund

Background: Netmeds is an e-pharmacy brand that serves over four million customers nationwide,
enabling them to purchase medicine online, book lab tests and consult verified doctors online.SAF, a
venture capital fund sponsored by Russia's Sistema PJSFC, is focussed on investing in technology-
enabled, consumer and business-oriented startups in India and Southeast Asia.

Summary:

1. Reliance Retail Ventures Ltd has announced the acquisition of majority equity stake in Netmeds
for a cash consideration of around ₹620 crore.

2. SAF, first invested in Netmeds in 2017, and this exit will gather attractive returns for the venture
capital fund as the online pharmaceutical startup grew four times its size over the past three years.

3. Healthtech startups like 1mg, PharmEasy, Netmeds and Medlife have seen strong growth in the
past few months as people turned to online platforms to order their medicines while maintaining
social distancing amid the pandemic.

Future Implications:
1. The Netmeds deal will strengthen Reliance's position in the e-commerce space, adding to the
firm's grocery platform JioMart.

2. Reliance's entry will accelerate Netmeds' growth and help the startup establish itself as the leader
in the online pharmacy sector

3. With large players like Reliance and Amazon battling in the e-pharma segment, the space is bound
to see significant expansion in the near future.

Link: https://www.livemint.com/companies/news/reliance-netmed-deal-to-bring-attractive-returns-
for-sistema-asia-fund-11597893710603.html