Google feeds regulators fresh meat to chew on 1 Feb 2012 Antitrust concerns have swirled around the Internet search giant for years. Now, changes to its data-sharing policies are causing added alarm among lawmakers. So far, Google hasn’t crossed any major legal lines. But the company, led by Larry Page, seems destined to find them.
Apple’s creative destruction claims another scalp 31 Jan 2012 RadioShack is the latest victim. The U.S. electronics retailer plunged 30 pct as Apple’s gadgets snaffle up a bigger chunk of the mobile market. RadioShack is largely a bet upon Android - and lesser carrier Sprint. With Apple keeping more of the spoils, that bet has now gone bad.
Apple’s cash is key to unlocking suppressed value 30 Jan 2012 Though it’s the world’s most valuable company, the iPhone maker doesn’t get full credit for its near-$100 bln cash hoard or its growth. A huge special dividend could be close to a free lunch. And regularly paying out half its earnings could show why Apple may be worth $1 trln.
Apple juggernaut regains warp speed with new pilot 24 Jan 2012 The tech giant’s recent quarter blew away the previous rare let-down: around $30 bln of market cap added after hours proves that. The latest iPhone fueled a 73 pct surge in sales from the year before. With cash rolling in, the destiny of nearly $100 bln in the iBank is looming large.
Patent bubble gets pricked quickly 24 Jan 2012 Apple, Google and Microsoft bid up smartphone invention prices to frothy heights last year to gain a market edge. InterDigital, owner of nearly 20,000 patents and applications, hoped to capitalize but couldn’t find a buyer. There’s still value to pan, but the gold rush is over.
RIM shies away from chance for reboot 23 Jan 2012 The troubled BlackBerry maker’s architects are finally giving up their shared chief executive job. But Thorsten Heins, the new boss, is an insider who sees no need for drastic change, and the two ex-CEOs will stay on the board. It could hardly be further from a fresh start.
Google finds new tech expectations hard to meet 19 Jan 2012 The Internet giant’s revenue rocketed 25 pct, but its shares still plunged after hours. Google failed to match Wall Street’s hopes, whereas Microsoft and IBM’s more pedestrian results reassured. In uncertain times, the old guard’s predictability can trump edgier possibilities.
Ex-American Idol boss readies own tech audition 17 Jan 2012 Robert Sillerman, the onetime concert promoter and TV talent show mogul, is back with a new idea. A little cash, a listed shell and the buzzy concept of socially networked TV is now a big stake in a $1 bln company. But the venture so far only has an X factor in clever finance.
Apple ties Cook into Jobs’ boots – at a price 10 Jan 2012 The maker of functional but expensive gadgets now has a $376 mln CEO retention plan to match. Tim Cook will get that if he’s around for a decade. He deserves much after standing in for Steve Jobs, and Apple needs continuity. But in future the board can pay Cook more like Jobs.
Confidence in cloud, cybersecurity key to growth 29 Dec 2011 They’re both hot $60 bln markets. But faith in cloud computing took a blow in 2011 with outages at Amazon and elsewhere. And the hacking of targets from Sony to Scarlett Johansson showed shortcomings in security. The tech industry needs to stay ahead if it wants to keep growth going.
Next digital tidal wave target: 3D objects 28 Dec 2011 The ability to turn music, books, films and newspapers into easily transferable electronic files up-ended these industries, destroyed old businesses and created new ones. The rise of printing technology now threatens to wreak similar havoc on producers of physical things.
Oracle’s rare stumble triggers double concern 21 Dec 2011 The software giant lost some $20 bln in market value after a subpar earnings report. The sell-off could be overdone: Larry Ellison’s firm may soon regain ground, as its bosses expect. But the rare miss could signal both a weak environment and a hiccup in Oracle’s own trajectory.
Hot speech tech firm’s story is too complicated 26 Oct 2011 Nuance Communications has built an $8 bln market cap by getting machines to understand talk. Its technology may even be behind speech recognition in the new iPhone. But its sky-high valuation multiple requires too much trust considering its complex finances and acquisitive ways.
Crop of shock CEO exits reinforces need to plan 25 Oct 2011 Judging by First Solar’s 25 pct stock price drop, you’d think it erred in ousting its chief. Or that Quest’s 11 pct jump meant it should’ve dumped its boss sooner. And no reaction must make IBM’s new CEO a snooze. The real lesson is that boards must carefully plan successions.
Cisco stops descent, stuck in purgatory for now 20 Oct 2011 After years of chasing growth - and seeing its stock crumble - the company is now focusing on profit. This should buy CEO John Chambers enough time from investors to retire gracefully. But outsized gains for shareholders look elusive, if rival big tech valuations are any guide.
Closed-door justice will leave dealmakers in dark 19 Oct 2011 A spat between Skyworks and takeover target Advanced Analogic will play out in private instead of open court under Delaware’s new arbitration system. That may save the parties time and money. But it cheats the M&A world - and investors - of valuable legal guidance.
Google investors "like" mobile and social results 14 Oct 2011 The Internet giant’s dazzling earnings report, showing adjusted sales up 37 pct, brought an after-hours share price jump. In mobile search, Google is making inroads the numbers don’t yet show, and its social network is gathering steam. But grappling with Facebook will be tough.
Patent litigation becoming a vicious circle 11 Oct 2011 Motorola, which Google is buying, is the target of Intellectual Ventures, a patent-holding firm backed by Google. Such tail-chasing is a bad sign for the business of acquiring invention rights and suing for dollars. Innovative pursuits might yield better returns than lawsuits.
iPhone 4S unleashes more creative destruction 4 Oct 2011 The latest version of the smartphone offers faster data processing and downloads, as well as voice-powered software. Apple investors and gadget fans might have wanted more. But companies ranging from Research In Motion to American Greetings probably hoped for less.
Patent spats getting pricier for tech shareholders 23 Sep 2011 The likes of Apple and Samsung are spending millions to sue each other. But new research shows it’s the trolls that own little more than legal rights to inventions levying the heftier toll on investors and innovation. It’s more evidence of why patent law needs to change.