Computer Hardware

How could HP find a $5bln gap in Autonomy’s value?

10 Dec 2012

Hewlett-Packard paid $11 bln for the UK software maker. Now it effectively says it would have paid $5 bln less had it known about dodgy revenue recognition and hidden hardware sales. But the U.S. tech giant won’t explain its numbers. Breakingviews does some reverse-engineering.

Deloitte tests whether TBTF applies to accounting

20 Nov 2012

If what HP says is true, Autonomy’s auditor will be in a tight spot. Deloitte keeps popping up in scandals despite a public shaming by its regulator. It’s becoming increasingly clear that the Big Four structure is leaving companies too vulnerable. It may be time to break them up.

HP-Autonomy row suggests bankers did not compute

20 Nov 2012

There’s plenty of blame to go around in the explosive bust-up between the U.S. tech giant and the British data-sifter. But it raises tough questions for the M&A advisers who shepherded the $12 bln deal, chiefly Frank Quattrone’s Qatalyst, Barclays and Perella Weinberg.

UK tech suffers with fall of lonely star

20 Nov 2012

Autonomy and ARM Holdings were the only gigantic tech successes in a country anxious to develop Silicon Valley-style hubs. Now one of the two national champions has fallen badly. For today’s British start-ups, Autonomy’s problem may make fund-raising a bit trickier.

If Apple becomes Microsoft, investors should cheer

19 Nov 2012

At least, that is, for their wallets. Middle age for tech stocks can hurt as growth shareholders lose interest and value-oriented owners await stability. But Apple has already made the transition. Even if its next decade echoes Microsoft’s last, the company is worth over $1 trln.

Intel’s next chief can’t be chip off old block

19 Nov 2012

The semiconductor giant’s shine has dulled with the rise of mobile. Being surpassed in market value by Qualcomm illustrates the shift. Retiring CEO Paul Otellini’s replacement will have to tackle smartphones, but time is wasting. Intel also needs to play tougher defense.

Microsoft succession glitch adds insult to injury

13 Nov 2012

The software giant has missed innumerable opportunities under boss Steve Ballmer - and its stock has been dead money for a decade. Losing a capable, if cranky, executive widely tipped to succeed Ballmer as CEO is one more sign that Microsoft’s future looks muddled.

Apple means (almost) never having to say sorry

1 Nov 2012

The tech giant apologized for a flawed maps app. But it resisted a UK court order to admit that Samsung hadn’t infringed on the iPad. Now the judges are demanding strict compliance. CEO Tim Cook, it appears, has as little appetite for humble pie as his predecessor Steve Jobs.

Apple infighting may be sign of golden age waning

30 Oct 2012

The company’s genius has been the smooth integration of art and engineering. Steve Jobs kept an uneasy peace between the two. With mobile software chief Scott Forstall out, design guru Jony Ive will rule over hardware and software. Apple needs mastery of both.

Why do investors prefer Amazon to Apple?

24 Oct 2012

Sure, the gadget maker’s market value is far larger. Yet investors are willing to pay almost nine times as much for the retailer’s estimated earnings. That’s expensive in any case. But it’s also odd, because Amazon perpetually promises more jam tomorrow, while Apple delivers it.

Apple takes lower-priced tablet fight to Amazon

23 Oct 2012

The new iPad mini takes Apple closer to the price point for the online retailer’s devices. The iPhone maker is risking some cannibalization, and possibly lower margins. But for Amazon, selling content is all-important. The new hardware rivalry could trigger price cuts.

Patent lawyers: Y’all better Deutsch sprechen

17 Oct 2012

The smartphone wars are moving from eastern Texas to western Germany. The shift is occurring because courts in Mannheim let the likes of Apple block rivals without proving harm, and their rulings carry global weight. The transatlantic legal arbitrage hurts competition, though.

HP’s services turnaround running low on ink

3 Oct 2012

The $29 bln tech company’s PC and imaging businesses are in decline. Investors had counted on IT services to print better numbers, à la IBM, while HP tries to fix the rest of itself. That’s not happening, for now at least. Boss Meg Whitman’s task just got even tougher.

Apple’s Maps snafu nothing new – just bigger

28 Sep 2012

CEO Tim Cook has apologized for leaving users frustrated - and lost. Launch problems aren’t new. Steve Jobs flubbed iPhone pricing, MobileMe and an antenna. For now Maps is only a hiccup. But Apple’s size and rising competition make avoiding slip-ups increasingly important.

Is HP facing a Xerox or Kodak-like future?

27 Sep 2012

All three iconic companies used to be leaders in their respective industries and technologies. Today, Xerox is muddling along and Kodak is bust. The smart money is split on whether HP can return to glory. But tech history suggests the bears will print the winning ticket.

iPhone 5 will live up to the hype – in time

24 Sep 2012

The 5 mln handset sales, worth some $3 bln, on debut fell well short of Wall Street’s whisper number. The figure still outpaced its predecessor’s and the iPhone 5 couldn’t meet demand. Supply-chain glitches and map-app hysteria won’t derail Apple’s chugging smartphone train.

Foxconn brawl reflects China’s economic challenges

24 Sep 2012

Reports of violence from one of the Apple supplier’s factories conjure up Western prison riots. That’s unfair, but 79,000 migrant workers, excess hours and dependence on a tough employer make a recipe for tension. It’s the dark side of supplying shiny gadgets to the world.

Motorola: the breakup that keeps on giving

17 Sep 2012

Splitting the company has been good for shareholders. Google bought the cellphone arm for a chunky premium. Motorola Solutions, its emergency communications business, has done even better. And there’s room for more. It could buy back a third of its stock without financial strain.

Apple’s iPhone offers subtle and sublime charms

12 Sep 2012

The unveiling of the company’s latest handset was a bit of a snooze. It is lighter, comes with a bigger screen and longer battery life. Better isn’t as exciting as new. But throw in improved software and it’s enough to be a big hit with consumers - and Apple investors, too.

Jury’s haste takes shine off Apple’s victory

28 Aug 2012

Panel members ignored instructions, miscalculated damages and generally seemed more eager to wrap up the case than get it right. That could help Samsung overturn the $1.1 bln verdict. Even if it doesn’t, though, the judgment reveals how legal complexity muddles the smartphone wars.