Computer Hardware

Apple’s iPhone factory placed briefly on hold

15 Nov 2017

Foxconn, maker of the 10th anniversary X model, reported a 39 pct slide in quarterly profit and lower margins amid production snags. The setbacks should be temporary. As iPhone orders roll in and production picks up, the Taiwanese manufacturer's fortunes will turn around quickly.

NXP is key piece in $105 bln chipmaker jigsaw

7 Nov 2017

If Qualcomm wants to fight an unsolicited offer from Broadcom, one logical move is to complete its own $38 bln deal for automotive chip specialist NXP. A year later, that price looks low. Qualcomm now has a double reason to raise it – but the timing is out of its hands.

Broadcom faces down ghost of chip LBOs past

6 Nov 2017

The $111 bln soon-American-again chipmaker offered $105 bln for Qualcomm. If the unsolicited bid goes anywhere, borrowing nearly $90 bln would send debt-to-EBITDA ratios towards leveraged buyout territory. Two former chip LBOs – Freescale and NXP – give pause for thought.

Investors put their chips on Broadcom mega-deal

3 Nov 2017

Fresh off its plan to move to the United States, the semiconductor firm is weighing a $100 bln bid for rival Qualcomm, Bloomberg reported. The industry is consolidating while patent and regulatory woes make the target vulnerable. An exuberant market reaction could seal the deal.

Production snags don’t take the shine off Apple

2 Nov 2017

Customers ordering today won’t see the latest handset until December, and developers are still figuring out the augmented-reality apps that make it worth buying. Hiccups aside, the X model will accelerate demand for services. The iPhone gold mine has plenty of nuggets left.

Samsung’s new bosses will have to be generous

31 Oct 2017

The tech giant is raising dividends to at least $26 bln through 2020. A tweaked returns policy also gives Samsung's three fresh CEOs-in-waiting and newly separate chairman room to hand back even more. That would help keep outside investors onside for an eventual restructuring.

Microsoft cashes in on corporate comfort

26 Oct 2017

Quarterly figures show a booming cloud business. The work world’s familiarity with Office, LinkedIn and other products makes it a natural supplier for many enterprises. This ease and economies of scale should enable the company to keep winning more of its customers’ computing.

Cisco buys more growth, but at unclear value

23 Oct 2017

The $170 bln networking giant’s $1.9 bln deal for collaboration-software outfit BroadSoft will help offset shrinking sales. The price, a 28 pct premium, looks rational. Cisco didn’t elaborate on synergies, though. Like its 200-plus other purchases, success will be tough to track.

Exchange Podcast: Scott Galloway

19 Oct 2017

The NYU marketing guru swung by Times Square to discuss what's next for "The Four" tech behemoths - Google, Apple, Amazon and Facebook. Among his predictions: one of them will be hit with a $10 bln-plus antitrust fine and Amazon will choose New York for its second headquarters.

HP Enterprise shows breakups can fail to shine

19 Oct 2017

Activists often prod companies to hive off promising businesses from boring cash cows. HP’s split shows the distinction isn’t always clear. The “exciting” servers and networking offshoot is returning more capital as expansion stalls while growth stirs at the PC and printer outfit.

iPhone boost is prelude to bumper year for TSMC

19 Oct 2017

Quarterly results show the leading contract chipmaker recovering after a lacklustre first half, aided by Apple's new iPhones. TSMC's next task is to gain a lead in a new generation of even smaller semiconductors. It looks well positioned to stay ahead of emerging rival Samsung.

Toshiba chips let Bain surf a Big Data wave

16 Oct 2017

A group led by Bain is paying $18 bln for Toshiba’s flash-memory unit after a drawn-out sale. The memory industry is cyclical and capital-intensive, and it's also in China’s strategic crosshairs. But a rising tide of demand for bytes will lift Bain's boat first.

Rivals circle Taiwan’s TSMC in new chip era

3 Oct 2017

Morris Chang, father of Taiwan's chip sector, is retiring at 86. His successors were groomed for years to take over the $189 bln behemoth Chang founded three decades ago. They'll need to work hard to defend TSMC's dominance against Samsung and rising mainland competitors.

Memory sale leaves a hollowed-out Toshiba

20 Sep 2017

After many leaks, lawsuits and U-turns, Toshiba is set to sell its prized flash-memory unit to Bain and partners for $18 bln. A successful sale would fix the balance sheet and placate lenders. It also reduces a Japanese industrial icon to a ragbag of barely profitable businesses.

Toshiba soap opera employs vast cast of middlemen

15 Sep 2017

The plot twists keep coming in the $20 bln sale of Toshiba’s memory unit, as vested interests clash. The drama may not do much for shareholder value, but the lawyers, stockbrokers and advisers don't want this fee-based passion play to end.

Apple’s iPhone pricing goes out on a tech limb

12 Sep 2017

The X features a new screen, wireless charging and facial recognition. It'll start at $999, the most expensive iPhone ever. That defies convention in an industry where products typically get cheaper. Design, performance and customer inertia, however, give Apple uncommon power.

Apple distance from startup tree ensures X success

11 Sep 2017

The $835 bln giant is set to unveil its 10th anniversary iPhone from its new $5 bln circular campus. The device may boast more speed, face recognition, and a better screen. Apple’s massive scale makes Silicon Valley-style nimbleness impossible - but global bestsellers possible.

EU’s antitrust creativity drive hits roadblock

6 Sep 2017

A case that slapped chipmaker Intel with a $1.3 bln fine has been punted back to a lower court. This is a blow for antitrust tsar Margrethe Vestager, who has tried to get as innovative in policing tech giants as the companies are themselves. Proving abuses will be harder.

Tech selloff lumps apples with oranges

12 Jun 2017

Shares in technology giants including Apple, Facebook and Amazon have suddenly tumbled. Given their rapid ascent this year, a correction always seemed likely. Still, such sector-wide moves obscure huge differences in different companies’ earning power and cash reserves.

Deep-learning chips getting artificially inflated

9 May 2017

Circuitry first produced for videogames now powers advances in the hot field of self-learning computers. That has helped double Nvidia's market value to over $60 bln in less than two years. The fate of graphics chips in bitcoin and new developments at Google may hint at slower growth.