Computer Hardware

Dell’s $10bn buyback rather stingy

4 Mar 2005

The world s largest computer maker has spent around $15bn on buying back stock over the past five years. Now it promises another $10bn. But with $4bn in net cash and minimal capital expenditure, why isn t it buying back far more?

STMicro capex cuts may not be enough

21 Oct 2004

The FrancoItalian chipmaker has bowed to reality and cut capital expenditure this year and next. But the group still hasn t recovered from past overinvestment. And the chip market could worsen.

Cheap phone sales shore up Nokia

14 Oct 2004

The Finnish mobile phone maker is picking up sales in growth markets like China, but only by selling lowend phones. This may work for a while, but Nokia needs to push upmarket phones if it is to recover its allure as a growth stock.

The group still plans to increase capital expenditure by up to 25% despite falling flat screen prices.

11 Oct 2004

While plunging profits at the flat screen producer can be explained away, its strategy cannot.

Intel repents for its optimism

3 Sep 2004

The world s largest chipmaker has admitted that it has been overestimating demand for its chips. Intel s admission shouldn t surprise. And with inventories still growing, there is more pain to come.

Think tech is oversold? Insiders don’t

24 Aug 2004

Several executives at big technology companies have been dumping stock this summer. It looks like the people in the know think the bear market in tech shares will continue.

ARM’s $913m deal looks pricey

23 Aug 2004

The UK chip designer has agreed to buy the US firm Artisan for about half its own market capitalisation in a largely share deal. ARM is paying a 42% premium despite having precious few synergies. There is also a risk that such a big deal will stretch management thin.

Dell trounces HP

12 Aug 2004

HP can blame temporary difficulties all it likes, but the real problems at the computer firm are structural. Namely, Dell is destroying its business one sector at a time.

Cisco story less convincing than ever

11 Aug 2004

The US networking giant claims that its burgeoning stockpile of goods is a good thing. It isn t not when Cisco s usually optimistic CEO seeing signs of tech demand faltering.

Chipmakers ready for push into the abyss

9 Aug 2004

Despite signs of a slowdown, chipmakers companies are pushing ahead with capacity increases. This will make the inevitable downturn worse. STMicroelectronics and Infineon, Europe s two largest chipmakers, haven t learned their lessons.

Tiscali re-jigs rescue plan

6 Aug 2004

The internet company has mothballed a planned capital increase. It is now banking on selling E250m of assets. This looks a high price for a forced sale, especially given Tiscali hasn't managed to sell any assets yet.

Alcatel missing out on recovery

29 Jul 2004

The telecom equipment maker focused on cash generation to survive the bust. Now it is suffering the consequences. The group appears to be losing market share in the mobile infrastructure market.

Thomson in major restructuring

22 Jul 2004

Making Frank Dangeard CEO is controversial. But it is a good idea. He has the credentials to turn the French group around. Dangeard s financing plan is broadly sensible. But there is one question mark over the nature of Silver Lake s investment in Thomson.

Ericsson’s profits have limits

21 Jul 2004

The snap back in wireless capital expenditure continues. Ericsson s customers are still catching up with underinvestment. And Ericsson s operating margins have gone through the roof due to cost cuts. But both have limits.

Nokia’s stock slammed after profit warning

15 Jul 2004

Unstylish phones have shrunk market share despite price cuts. And sales and profits are expected to shrink next quarter. The stock now looks undemandingly valued. But much depends on the group delivering hipper phones by Christmas.

That means Philips and LG, the owners, have missed the best moment to float the business.

9 Jul 2004

Operating profits are booming at the flat screen maker, yet prospects for a successful float aren t. Falling flat screen prices leave the group looking well past its sell by date. Profits have shot up at the flat screen maker. But they are probably at the peak.

Nokia caught in price trap

6 Apr 2004

If the group cannot stabilize falling prices per phone during a boom, it will be in a world of trouble come the next bust. The Finnish phone maker's revenues fell in the first quarter even as the volume of its handsets sold increased by 19%.

How long can Ericsson’s bull run continue?

1 Apr 2004

The Swedish telecoms equipment group has defied those who thought its profitability would not exceed year2000 levels. But the shares are well up with events. They need revenue growth if they are to run up further.

Infineon’s boss forced out by unholy alliance

26 Mar 2004

Ulrich Schumacher's leadership pushed the company through the tech bust in fine form. But his threats to move the company to another country gave workers and managers an excuse to dodge reform.

Biggest German IPO in three years withdrawn

24 Mar 2004

Animal spirits may be strengthening, but investors are discerning. Siltronic s aggressive pricing was the real cause. The expected E1bn float of tech company Siltronic has been withdrawn just a week after another German tech IPO, XFab, was also pulled.