Dollar might yet take bite out of Apple 19 Oct 2009 The US tech company s dominance of the market for digital music devices is clear in its sparkling results. More surprisingly, Apple says the dollar's weakness didn't cause any real benefit. That's good, but a strengthening dollar could hurt.
Wynn’s first-day win looks a little thin 9 Oct 2009 Some new issues in Hong Kong have tumbled, but shares in Steve Wynn s Asian gaming empire rose 13% in their first day s trading. But there s not much of a jackpot. The shares were priced last week, and the firstday bounce was just catching up with the peers gains since then.
Xerox has tough sell with $6.4bn ACS deal 28 Sep 2009 The US office equipment company is the latest to try and snap up a business services firm. It will have to convince its shareholders that this isn t a case of metoo corporate strategy. That may be difficult. The purchase price is high and the synergies are unconvincing.
Dell pays through nose in search for direction 21 Sep 2009 The US computer maker is acquiring Perot Systems for $3.9bn, a whopping 68% premium. It's a muffled echo of rival HP s purchase of EDS. Add in the high price and it seems like a bet that doing more IT services can somehow end Dell's floundering. That's wishful thinking.
Amazon spends about $1bn on clever apparel push 23 Jul 2009 The internet retailing giant has snapped up Zappos.com a firm best known for selling shoes on the web. Few think of Amazon as a place to buy clothing. So buying fast growing Zappos and keeping the brand may be the best way forward in the $220bn US market.
Silicon Valley may be too clubby for Obama 4 Jun 2009 The recent probe into the hiring practices of tech heavies like Apple, Google and Yahoo suggests as much. The place is cliquey. But the competition for talent is fierce. This is more likely shot off the bow from competition authorities.
Regulators further fetter Intel’s quasi-monopoly 13 May 2009 Dominance hasn t led to growth. Despite selling 80% of all microprocessors, Intel s revenues have expanded a mere 1% a year since 2000. Customers just aren t shelling out for new, faster chips. And more antitrust problems witness the EU s E1bn fine will add to its headaches.
Microsoft’s debt offer matters – to Microsoft 12 May 2009 The software giant is set to issue nearly $4bn of bonds. It doesn t need the cash, not with a $170bn market capitalisation, prodigious cash flows and no debt. But the rapturous reception of Microsoft s first ever bond issue says more about the company than the credit markets.
Tech bellwether profits predict distant recovery 28 Apr 2009 Earnings season for industry giants like IBM and Microsoft was mostly a story of unexciting results and tepid guidance. Tech outperformance usually presages recoveries. When the technology Pollyannas don t believe good times are just around the bend they probably aren t.
Arbs aren’t buying PCCW’s buyout plan 14 Apr 2009 It looks like a juicy profit. The Hong Kong telecom is trading for 10% less than shareholders agreed to take from tycoon Richard Li. But the deal was made in better times. So Li might not mind if regulators shoot it down. He might even be looking for a semidignified way out.
Satyam fallout limited, but India can do more 9 Mar 2009 A sale process has begun for the stricken IT outsourcer, only three months after a $1bn accounting fraud was revealed. Bidders are queuing up. The Indian government has dealt with the scandal well, but one thing is still missing a successful prosecution.
Bargain laptop could help Apple weather downturn 9 Mar 2009 The Mac maker is rumoured to be devising a touchscreen portable to hawk for less than its standard offerings. If so, that could help it weather the industry slowdown. But Apple would need to be extrainventive to avoid cannibalising its highermargin fare.
PC makers face long-term decline 2 Mar 2009 The number of PCs sold this year may fall 12% according to a new estimate, and prices are tumbling. Worse still, virtualisation and the rise of ultracheap models mean PC makers' problems won t lift when the economy recovers.
Microsoft gets selective with Great Depression lesson 25 Feb 2009 Boss Steve Ballmer rightly says hard times are no time to cut R&D budgets. He points out RCA s research in the 1930s led to decades of dominance in television. Curiously, he neglects to mention RCA s massive legal campaign against TV s inventor.
Dell takes another futile bite at Apple 30 Jan 2009 The PC maker has long been Apple's mirror image producing bland, cheap computers rather than premiumpriced clever ones. Dell's efforts to make an iPhone clone will probably be as unsuccessful as its attempt to muscle into iPod s turf in digital music players.
Microsoft is no longer an unstoppable force 22 Jan 2009 The software maker surprised the market with results below expectations. And it s laying off 5,000 employees the first mass cuts in its history. The miss underlines its vulnerabilities. CEO Ballmer needs to stop playing video games and focus on his core business.
Jobs leaves Apple with plenty of money spinners 21 Jan 2009 The hip gadget maker s earnings smashed expectations. They were largely driven by biggerthanexpected iPod sales and its resurgent Mac computer line. If Steve Jobs doesn t return to the helm, Apple s next chief will at least have several strong products to offer breathing room.
Yahoo’s ho-hum CEO pick faces steep challenges 13 Jan 2009 The struggling internet company went the safe route by picking Carol Bartz as its new leader. While her experience makes her an adequate choice, she doesn t look like a game changer. But that may be what s needed to conquer the difficulties on Yahoo s horizon.
Satyam’s $1bn fraud isn’t just an Indian problem 9 Jan 2009 The Indian IT software firm was also supposed to meet US accounting standards. Something clearly went wrong and the excuses are already flowing thick and fast. The history of high profile fraud suggests the accountants, PricewaterhouseCoopers, will find it hard to escape blame.
Steve Jobs is worth $20bn to Apple shareholders 17 Dec 2008 Ok, this isn t scientific. But the value of each of Apple s businesses can be calculated. The premium the stock fetches to them reflects investor faith in the CEO s ability to stitch the whole together. That s why questions about Jobs health matter.