Computer Hardware

Toshiba and Western Digital need to get along

9 May 2017

The ailing Japanese giant has warned its U.S. partner not to derail the auction of a key chip unit. Toshiba needs a full price to offset its nuclear losses while Western Digital wants to buy the business in a fire sale. There's not much common ground.

Apple plays soothing iPhone hold music

2 May 2017

The tech colossus sold nearly 51 mln smartphones despite a resurgent Samsung and maturing markets. App-store sales also grew and more dividends and buybacks are on the way. That should pacify investors until Apple rolls out the 10th anniversary edition of its pioneering device.

Apple imagines away chip supplier’s future

3 Apr 2017

Imagination Technologies lost more than 60 pct of its value after the iPhone maker said it would stop using the UK firm's technology. That may wipe out half Imagination's revenue and any hope of profit for the time being. It's a risk small suppliers run with control-freak Apple.

Patent anger makes Apple Qualcomm’s new Nokia

16 Feb 2017

The iPhone maker's $1 bln claim against its cellphone-chip supplier echoes a showdown a decade ago that threatened to derail Qualcomm's business model. Then, settlements with Nokia and others helped line up another decade of healthy earnings. Qualcomm needs a repeat performance.

Servers shred Lenovo’s M&A credibility

16 Feb 2017

The PC-maker is still struggling to turn around Motorola's mobile business, bought in 2014. Now the purchase of IBM's server unit looks unwise too. Lenovo was once the best example of a Chinese firm growing via foreign deals – but rebuilding that reputation will be very hard.

Toshiba memory-chip selloff is drastic medicine

14 Feb 2017

The Japanese group unveiled a $6.3 bln writedown, forecast negative equity and parted company with its chairman. The delivery was chaotic but the message well-telegraphed. The possible sale of a majority of its most valuable unit is new, and reveals the depth of its crisis.

Apple sows seeds for India iPhone awakening

10 Feb 2017

The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.

Apple working harder to squeeze iPhone juice

31 Jan 2017

The company sold more phones in the holiday quarter, yet profit fell. A saturating market and slowing innovation aren't helping margins. Yet Apple's size, the prospect of a new phone and the ability to sell additional services are bright spots that should keep investors on board.

Aging tech provides fertile M&A hunting grounds

2 Nov 2016

Broadcom's $5.5 bln deal for Brocade is the latest transaction to mix equal parts strategic logic and financially appealing cost savings. Stagnating sales, cheap money and maturing technology give acquisitive firms like Broadcom plenty of targets to choose from.

Qualcomm’s $47 bln NXP deal may have an extra gear

27 Oct 2016

The chipmaker is paying over the odds to expand beyond stagnant smartphones. The $10 bln premium for NXP overwhelms anticipated cost savings worth about $4 bln. Qualcomm's chances of dominating the future market for self-driving cars help explain the deal's warm reception.

Robots offer blueprint for Chinese M&A in Germany

11 Oct 2016

China's Sanan is circling Osram, the $7 bln lighting firm backed by Siemens. The recent takeover of Kuka, a German robotmaker, could be a precedent. That suggests Sanan needs to offer job guarantees and other concessions to keep Berlin onside, as well as a big premium in cash.

Intel takes schmuck insurance to cyber extremes

7 Sep 2016

The chipmaker run by Brian Krzanich is selling 51 pct of its McAfee security software business to TPG for $1.1 bln. It's an embarrassing comedown for a firm Intel acquired for $7.7 bln in 2010. Intel just may find some redemption, however, if the buyout firm can work some magic.

Samsung Note 7 fires offer glimpse of new leader

5 Sep 2016

Faulty batteries have forced the $230 bln giant to recall its latest smartphone. The financial fallout may be manageable. But it gives outsiders a way to assess heir apparent Jay Y. Lee, who is trying to assert his authority on the conglomerate. Drastic action is encouraging.

Intersil would be a high-octane deal for Renesas

23 Aug 2016

Buying the U.S. chipmaker would better position Renesas for the rise of the smart car. But a mooted $3 bln price tag for the power management specialist sounds high, even if Intersil is half-way through a turnaround. Renesas is steering itself towards a lacklustre return.

Apple’s muted results belie building pressure

26 Jul 2016

With little reason for customers to update their iPhones, the $520 billion firm led by Tim Cook again reported declining quarterly sales. Yet favorable forces pile up with each mediocre result - existing handsets are aging, services growing, and investor expectations falling.

EMC owners shift concerns from Dell to VMware

19 Jul 2016

The storage maker's shareholders overwhelmingly backed a sale to the PC producer, cementing a deal once valued at $67 bln. Now they have to get comfortable with the untested VMware tracking stock they'll receive. For now, the implied discount of nearly 50 pct makes sense.

SoftBank’s Son tests limits of investor patience

19 Jul 2016

SoftBank shares tanked after its no-synergy, $32 bln bet on UK chip designer ARM. Having just lost his heir apparent, founder Son talks about the company as if it is private and says the highly leveraged entity is "net debt zero". It takes the shine off his striking track record.

SoftBank’s new ARM may tie Sprint’s behind back

18 Jul 2016

The Japanese tech and telecom titan spent $32 bln on the UK chipmaker because it's feeling good about its U.S. wireless carrier. SoftBank's confidence confounds. Sprint is fourth of four in a maturing market locked in a price war. It's a bad time to have a distracted parent.

SoftBank’s $32 bln ARM bet gives investors a shock

18 Jul 2016

The Japanese tech group has reportedly agreed to buy the UK chip designer. It's a pricey punt on connected devices, and an unwelcome surprise for those who thought SoftBank was focused on reducing debt. Shareholders remain at the mercy of Chairman Masayoshi Son's "crazy ideas".

Apple may find it harder saying “no” to bad ideas

26 May 2016

An executive at the tech giant reportedly proposed a bid for Time Warner. That seems contrary to founder Steve Jobs’ recipe for success: reject “1,000 ideas” and focus only on the few good ones. But an aging iPhone, a tepid stock price and a cash pile risk making the mediocre tempting.