Computer Hardware

Google salvages insurance from its biggest deal

30 Jan 2014

Selling Motorola Mobility to Lenovo for $2.9 bln after buying it for $12.5 bln barely two years ago looks awful. The search giant extracted some value, however, and is keeping loads of patents. The deal was still costly, but it did find a kind of protection for the Android world.

Apple’s cart needs refilling with fresher products

27 Jan 2014

The tech giant’s modest quarterly results highlight the risks of relying on just a few aging mega-hits. The iPhone and other top offerings have made the firm worth more than any other in the world. But eroding market share, and $40 bln in vaporized value, portend trouble.

ASML’s pricey punt keeps Moore’s Law hopes alive

22 Jan 2014

The Dutch semiconductor equipment maker paid up to buy Cymer in 2012. ASML hoped this would help double the volume of transistors it can cram on its chips every two years, as seen in long-running industry trends. Robust demand in its latest results shows it made the right call.

Silver Lake takes a second juicy bite of Avago

16 Dec 2013

The U.S. private equity firm quintupled its money on the initial carve-out of the chip company from HP. Now it’s back, underwriting Avago’s $6.6 bln purchase of rival LSI. The market’s warm embrace of the deal means Silver Lake’s $1 bln convertible loan is already in the money.

BlackBerry shares finally find bottom of sorts

23 Sep 2013

Backer Fairfax has made a $4.7 bln buyout offer for the beleaguered smartphone maker. That might be justified by the company’s $2.6 bln of cash plus the market value of its IP. But a meltdown in demand for its phones makes the case for a successful turnaround a fragile one.

BlackBerry washout leaves a white-collar stain

23 Sep 2013

The original smartphone arrived at the dawn of the new millennium as the gadget of choice for a mobile Wall Street class. This spawned an aspirational boom among consumers. Fittingly, its demise is occurring with the BlackBerry as a symbol of the professionally indentured.

Old HP sets breakup example for new HP

19 Sep 2013

Agilent is considered by Silicon Valley veterans as the “real Hewlett-Packard.” Spun off in 1999 with the company’s original testing products and research DNA, it has outperformed its former parent and is now splitting to create yet more value. HP can learn from its progeny.

Dell hell concludes, lessons probably unlearned

12 Sep 2013

Shareholders have finally approved the $25 bln buyout by founder Michael Dell and Silver Lake. It carried more than its fair share of ridiculousness. Overconfidence and delay got the better of both sides – and speculators succumbed to their overactive imaginations.

Apple gives finger to the skeptics

10 Sep 2013

New plastic and gold iPhones arrived with software, speed and camera upgrades. In lieu of a watch or TV, biometric security features provided the wow factor. Though the bottom-line benefits for Apple aren’t immediately clear, it may have just started a mobile payments revolution.

Apple event more likely evolution than meteor

9 Sep 2013

Investors and the tech giant’s fans are clamoring for a hit new gadget on Tuesday – a watch, a TV or something else. History and rumors suggest they may have to settle for improvements to existing devices. Financially, a deal to sell iPhones through China Mobile could matter more.

Carl Icahn won’t have the last tweet on Dell

9 Sep 2013

The billionaire has conceded defeat in his effort to block Michael Dell’s $24 bln buyout of the PC maker. Icahn may still profit, and his broader record is strong. But his Dell logic did not compute. And his recent punt on Apple is a better ad for his self-promoting parting shot.

Big Blue’s earnings engine makes sputtering sounds

20 Aug 2013

IBM is hell-bent on boosting earnings to $20 a share in 2015. Pressing on the accelerator of job cuts, software M&A and select disposals has worked well to a point. But falling sales point to a hole in the gas tank. And the company’s speedometer may be faulty, anyway.

Michael Dell tries to crush passive resistance

24 Jul 2013

The minuscule increase in price for his eponymous computer company won’t win many shareholder votes. But he and backer Silver Lake want the board to stop treating abstentions as rejections. If adopted, investors wanting to scupper Dell’s buyout would have to vote against it.

Apple overcomes China blues for now

24 Jul 2013

One of the tech giant’s most reliable engines for growth has been Chinese demand. It flamed out last quarter, however, with revenue from the Middle Kingdom shrinking 14 percent. Solid U.S. sales helped compensate, but Apple will need new products if it wants to shine again.

Dell shareholders get time to come to their senses

18 Jul 2013

With the vote on a $24 bln buyout too close to call, the PC maker put off the decision for a week. The hope of a sweetened bid from Michael Dell and Carl Icahn’s eleventh-hour lobbying proved too alluring. Sleeping on it a bit more, though, should make Dell’s hard reality clear.

Microsoft needs focus, gets bigger org chart

11 Jul 2013

Boss Steve Ballmer says the software giant must speed up and focus on what customers want. That at least is the gist of two sprawling memos justifying a sweeping restructuring. Yet the Microsoft organization now looks more complex. And the company is vague about its purpose.

Key proxy adviser accepts Dell bid reality

8 Jul 2013

ISS could have backed Carl Icahn’s opaque alternative rather than support the $24.4 bln bid from Michael Dell and Silver Lake. But given negative news since the deal surfaced in February, the founder’s bid – despite potential conflicts – is the percentage choice for shareholders.

Microsoft’s bucket list needs more realism

21 Jun 2013

The software giant dreamed of “Windows everywhere” in its youth. Now, the firm seems to be racking up experiences while it still has strength. It has decided not to take on Amazon. But retail stores and smartphones remain on the cards. A narrower focus could prove more rewarding.

Dell’s board neatly paints investors into corner

5 Jun 2013

The special committee has shown persuasively why shareholders should back the $24.4 bln buyout by Silver Lake and Michael Dell and why Carl Icahn’s rival offer fell short. But majoring on how badly the company is doing is a hostage to fortune if the deal does get voted down.

Apple’s design ethos would help fix U.S. tax code

21 May 2013

When barraged with tough questions from senators, CEO Tim Cook held the line. He admitted the company needed a complex tax strategy to remain globally competitive, but also offered a sensible compromise. Why not make the American tax code as minimalist as the iPhone?