Computer Hardware

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.

Apple puts its finger on a security gap

27 Jul 2012

The iPhone maker is buying AuthenTec, a fingerprint technology maker. The $356 mln price is only a long weekend’s cash flow for the gadget giant, but the deal is still among its biggest. It suggests Apple sees the need to fortify device defenses for growth areas like payments.

Anticipation makes Apple miss

24 Jul 2012

An unexpectedly sub-stellar quarter knocked nearly $30 bln off the company’s market value. Apple’s success has become a kind of burden. With most fresh products a hit - the next a new iPhone - it’s ever harder to get customers to buy current devices as launches approach.

Intel deal closes circuit to faster chips, growth

10 Jul 2012

Next-generation chips are cheaper, quicker and use less power. But toolmakers have been unwilling or unable to spend the sums needed to make the switch. Intel’s $4.1 bln ASML investment deploys offshore cash to remove such bottlenecks and forces rivals to play to its strengths.

Best hacking defense isn’t really a good offense

3 Jul 2012

Computer break-ins have cost Citi, Sony and others millions of dollars in stolen data. Retaliation is tempting, but risky and probably illegal. Instead, law enforcers need sharper tactics like the FBI’s recent hacker sting. Otherwise, victims can’t be blamed for hacking back.

iPhone anniversary marks triumph over crisis

29 Jun 2012

Apple rolled out its iconic gadget five years ago, just as Bear Stearns subprime hedge funds sounded the alarm on systemic trauma. Financial woe often impedes development by stifling R&D budgets. But the iPhone is proof of how innovation can defy the odds and overcome hard times.

Apple and Facebook become frenemies versus Google

12 Jun 2012

The iPhone maker hasn’t figured out social networks. Remember Ping? Facebook fears losing control to makers of operating systems of mobile gadgets. Making Facebook work smoothly on Apple devices can boost revenue for both - and allow them to thwart their mutual enemy Google.

RIM doesn’t need to remain Canadian

31 May 2012

The struggling BlackBerry maker is weighing its options, from joint ventures to a sale. Despite past form, some officials’ preference to keep the company Canadian shouldn’t worry would-be foreign buyers too much. RIM’s declining sales and significance present a bigger challenge.

Apple’s TV quest probably could do with some help

14 May 2012

Luxury television set maker Loewe’s shares jumped on a blog report that Apple had offered to buy it. Even if the German manufacturer has nothing to do with Apple’s future, TV almost certainly does. Joining up with a company with like-minded designers and engineers wouldn’t hurt.

Apple’s valuation isn’t at risk any time soon

3 May 2012

Its $550 bln market cap is mind-boggling, but the fast-growing iPhone maker nevertheless trades at an absurdly low 12 times earnings. A new Breakingviews calculator shows how even if growth and margins decline improbably fast, Apple should still be worth far more in 2016.

It’s too soon to be doubting Apple

24 Apr 2012

Fears over a slowing U.S. smartphone market and chip problems sent investors scurrying in April. But the company smashed expectations yet again, almost doubling profit in the latest quarter. The trends powering Apple - China, rising margins and the halo effect - still have legs.

3D printing deal enhances sector depth illusion

16 Apr 2012

Making items from digital files is a hot technology - maybe too hot given the market reaction to Stratasys’ deal for Objet. Despite few cost cuts and an odd poison pill, the buyer’s shares rose some 25 pct on the promise of revenue synergies. But the future isn’t quite here yet.

So what’s Apple really going to do with its cash?

19 Mar 2012

It will hand about $45 bln to shareholders over three years, mainly as dividends. That’s a good start. Yet Apple could make $50 bln in free cash flow this year. With sales and profit rocketing - and the bulk of its $100 bln hoard still stuck overseas - bigger payouts will follow.

Apple’s latest iPad looks sufficiently incremental

7 Mar 2012

The new tablet device comes with a sharper screen, more powerful chip and better camera. The update is evolutionary, not revolutionary. That may disappoint gadget fiends hoping for something more. But history suggests it should be plenty for Apple investors craving growth.

Apple needs good, not just better, supply chain

7 Mar 2012

Despite the bad press, Chinese workers preparing the iPad 3 are treated less badly than many in electronics - which in turn beats the toy and clothing sectors. But with the “lonely leadership” of Apple’s brand and cash, doing things relatively well isn’t enough.

$500 bln valuation may still be only half an Apple

28 Feb 2012

The market cap of the world’s largest company is edging toward that landmark threshold. But it could just be a pit stop on the way to $1 trln. A quick tour of Apple’s other eye-watering numbers explains why.

Apple ties Cook into Jobs’ boots – at a price

10 Jan 2012

The maker of functional but expensive gadgets now has a $376 mln CEO retention plan to match. Tim Cook will get that if he’s around for a decade. He deserves much after standing in for Steve Jobs, and Apple needs continuity. But in future the board can pay Cook more like Jobs.

Next digital tidal wave target: 3D objects

28 Dec 2011

The ability to turn music, books, films and newspapers into easily transferable electronic files up-ended these industries, destroyed old businesses and created new ones. The rise of printing technology now threatens to wreak similar havoc on producers of physical things.

Canaries in Q4 earnings coal mine looking sickly

9 Dec 2011

DuPont and Texas Instruments now expect weaker fourth quarters. Both say customers in most sectors are reducing inventory to be conservative and raise cash. U.S. multinationals’ earnings have been surprisingly robust – but these bellwethers suggest that may be changing.

Oracle needs to read Cisco cautionary tale

5 Dec 2011

Empires built on acquisitions can run into problems as they sprawl. That’s doubly so in tech, where obsolescence is a risk. Oracle has used database profits to buy new businesses. So far, so good - but Cisco’s record suggests success will be hard to sustain.