HTC needs breathing space for revival 2 Nov 2015 At $2 bln, the Taiwanese handset maker is worth little more than its dwindling cashpile. The founder rules out a sale. So HTC needs to buy time by raising funds, perhaps by selling a stake. Even then, new smartphones and a push into virtual reality both look like long shots.
Taiwan chipmaker’s woes mirror economic challenge 1 Sep 2015 TSMC faces tepid global demand and a slowdown in China, the world’s largest smartphone market. The $100 billion group is also losing market share to rival Samsung. The problems facing Taiwan’s largest company are shared by the island’s tech- and export-dependent economy.
Taiwan, Korea don’t tell cheery U.S. growth story 18 May 2015 Employment growth is sputtering in the two Asian exporting nations most exposed to American consumers. History suggests that’s a bad omen for U.S. retail sales. If the pattern holds, a bad winter in the world’s biggest economy could be followed by a disappointing summer.
Alibaba’s split nationalities invite trouble 3 Mar 2015 Taiwan wants to boot the e-commerce group out for not declaring itself Chinese. Yet Alibaba’s home changes depending on who asks. China’s taxman sees Hong Kong, licensing bodies see China, and investors see the Cayman Islands. The confusion may encourage regulatory meddling.
HTC revival may rest on return to no-brand roots 7 Jan 2014 The Taiwanese handset maker’s full-year loss raises fears it is following rivals into a downward spiral. HTC’s old strength was to focus on design and let others worry about marketing. A possible deal to make China Mobile-branded smartphones may be its best hope of a turnaround.
Asia’s inflation challenge – not enough of it 11 Nov 2013 Credit-fuelled domestic demand is not pushing up prices. Exports are weak, so producers are dumping surpluses locally at low prices. Also, rising Asian currencies have made imports cheaper. Tepid inflation increases the real cost of debt, which may slow investment.
HTC has no easy exit from competitive rut 24 Oct 2013 The Taiwanese handset maker is losing market share to flashier rivals like Apple and Xiaomi. The shares are down 90 percent in two years. It posted a quarterly loss and may sell some factories to save cash. An outright takeover might seem logical, but while HTC’s products are attractive, the valuation is not.
Not all Asian countries need to fear the Fed 5 Sep 2013 Plunging currencies have raised contagion concerns. But not all nations are equally vulnerable to receding tides of dollar liquidity. A Breakingviews interactive map shows that while no Asian economy is entirely immune, none is as badly exposed as India.
Patents hoarders aim for bigger slice of Apple pie 24 Jul 2013 Hon Hai earns a crust making iPhones and the like for brands that reap hefty rewards further up the supply chain. While sales are growing, manufacturers must fight workers, brand owners and consumers for a bigger share of value. Patents may be a way to wrestle something back.
Motorola: the breakup that keeps on giving 17 Sep 2012 Splitting the company has been good for shareholders. Google bought the cellphone arm for a chunky premium. Motorola Solutions, its emergency communications business, has done even better. And there’s room for more. It could buy back a third of its stock without financial strain.
Hon Hai cash not enough to restore Sharp’s edge 3 Sep 2012 The Taiwan company’s boss left Japan without a new deal for the 9.9 percent stake in Sharp he proposed buying in March. Sharp only has cash to last about six months. Without an overhaul or sale of its LCD and solar businesses, the electronics maker may struggle to stay afloat.
Korea, Taiwan are global stimulus weather vanes 23 Aug 2012 The two export-reliant economies are suffering as global growth slows. Yet foreign investors have been snapping up their stocks to wager that China, Europe or the U.S. will respond with major stimulus measures. If they do, Asia’s exports could be among the first beneficiaries.
Hot money working in Asia’s favor, for a change 1 Aug 2012 When the region’s central bankers were worried about inflation, foreign portfolio investors were their enemy. Rate increases lured hot money, adding to price pressure. Now the Asian authorities want to spur growth, and foreign investors’ thirst for yield is helping them out.
Sweat-free iPads come at a price worth paying 30 Mar 2012 Apple scores points for pushing to improve life for workers at the Foxconn “iGadget” factories in mainland China. But change may have been inevitable thanks to rising wealth and labour shortages. Consumers, ultimately, may have to foot the bill, but they should be OK with that.
Taiwanese money can’t save Japan from Samsung 28 Mar 2012 Foxconn’s $1.6 bln investment into Sharp buys Japan’s electronics company time. But there’s a huge glut in flat-panel screens and the likes of Sharp, Panasonic, Sony and Toshiba may be fighting a losing battle against the Koreans. As Hitachi has shown, it may be best to withdraw.
Taiwan voters should focus on growth, not China 10 Jan 2012 A second term for President Ma Ying-jeou may push Taiwan faster towards its giant neighbour. But flagging exports are more pressing. With only Ma likely to spend what it takes to perk up growth, a decisive victory for his party in elections on Jan. 14 would be best for the economy.
IMF’s education remedy won’t cure rich world ills 20 Sep 2011 The fund’s flagship yearly outlook laments a jobs crisis and rising inequality in wealthy nations. But its prescription of more education spending is unlikely to do the trick. Though desirable in many ways, such outlays aren’t the golden ticket economists often claim.