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Computer Hardware

Dell deal falls short on three fronts out of three

19 Sep 2018

The PC maker is trying to persuade owners of VMware tracking stock to accept a big discount to the tracked shares, a whopping valuation for its own equity, and third-class voting status. The simplification ought to appeal, but Dell’s $22 bln offer includes too much to dislike.

Apple’s new innovation: tap fear as well as greed

12 Sep 2018

The $1 trillion firm’s new watches can detect falls and heart conditions, making them a useful gift for grandma, as well as hypochondriacs everywhere. Meanwhile, aesthetic appeal and better cameras should be enough to convince many users to pay up for an improved phone.

Apple gets schooled in lose-lose trade strategy

10 Sep 2018

President Trump suggested that the iPhone maker build products in America if it wants to avoid tariffs on Chinese goods. That sends the message that hurting U.S. companies is an acceptable price to pay for insisting trade partners bend to U.S. demands. Escalation is inevitable.

Chinese beauty app reveals ugly tech reality

22 Aug 2018

Meitu’s dismal results included a fall in revenue and monthly active users. A planned social media makeover for the $2.5 bln photo-editing and smartphone maker also failed to prevent a 17 pct decline in the shares. Stiffer competition and Beijing crackdowns are taking their toll.

Apple both is and isn’t already a $1 trln company

1 Aug 2018

It’s a tantalizing number, but it’s just that. If the iPhone maker hadn’t bought back so much stock, its market capitalization would have reached 13 digits long ago. Then again, stripping out its cash to value the business alone, there’s still some way to go.

Microsoft could use some self-inflicted activism

19 Jul 2018

The software giant now has more than $50 bln in net cash, thanks in part to successfully growing its cloud platform. Tax changes will boost its hoard even faster. With debt easily manageable, the company ought to boost dividends and buybacks, before pushy investors force it to.

Dell gets more real by deleting virtual stock

2 Jul 2018

It’s buying shares that mirror those of its VMware division for $21.7 bln. The 29 pct premium is ample but still gives away less than half the discount at which the tracking stock traded. The sensible simplification takes the IT firm closer to a full return to the stock market.

Xiaomi super-syndicate lifts noise-to-signal ratio

25 Jun 2018

The Chinese handset-maker picked 23 banks for its $6 bln Hong Kong IPO. Having so many hangers-on jostling for $76 mln of fees could make it hard to gauge demand. That has tripped up previous listings and is unhelpful for a debut that has already had to dial down its exuberance.

Intel scandal matters little today, a lot tomorrow

21 Jun 2018

The ouster of CEO Brian Krzanich for a relationship that breached company policy need not be a disaster. It shows the relevant rules apply to all, and Intel can run itself smoothly for a while. Mounting tech challenges, however, make it critical to find the right replacement.

China’s DRAM dreams may trigger glut memories

14 Jun 2018

Consolidation, rising costs, and technological limits have turned memory-chip production from a cash-burning exercise into a profitable triopoly. Chinese firms’ efforts to break in – along with Beijing’s pricing investigation – risk eroding the industry’s good times.

Apple’s value can chug well past $1 trillion

5 Jun 2018

The tech giant is close to being the first to pass that threshold in market capitalization, as Breakingviews predicted seven years ago. Growth has slowed but customers remain loyal and today’s valuation is far from stretched. Apple’s focus on data privacy may help it get there.

Sharp has better shot at PC reboot than Toshiba

5 Jun 2018

The Japanese group is buying its rival’s laptop business for a song. Toshiba was a PC pioneer, but the last thing it needs now is to battle in this cutthroat, scale-dependent and low-growth industry. Backing from Taiwan’s Foxconn puts Sharp in a slightly stronger position.

GitHub deal displays softer side of Microsoft

4 Jun 2018

The $775 bln IT giant is buying GitHub, the most popular site for developing, sharing and talking about software, for $7.5 bln. The old Microsoft was about extinguishing competition – boss Satya Nadella seems more interested in persuading developers to use his services.

Chinese antivirus giant’s cash-call is well-timed

16 May 2018

360 Security Technology is making the most of its new home after fleeing New York. It’s capitalizing on an exuberant new Shanghai valuation to raise $1.7 bln through a private placement so it can chase AI and big data. This is another smart trade from founder Zhou Hongyi.

Microsoft is designated driver of the tech world

26 Apr 2018

The tech giant is vying with Amazon to be the planet’s second-biggest firm by market value, at around $730 billion. Microsoft looks dull, but the predictability of its earnings under Satya Nadella has helped its shares outperform Apple, Alphabet and Facebook.

Icahn offers poaching insurance for VMware

18 Apr 2018

A stake purchase by the activist investor could add friction in a potential merger of the $53 bln software company with its controlling shareholder Dell. Minority shareholders in VMware ought to expect fair treatment. Icahn's presence might help ensure they get it.

Dell’s Pivotal IPO actually is pivotal

9 Apr 2018

The private tech giant has a massive debt load, feeble cash flow and investors eventually hoping to exit. Floating part of $4 bln cloud software firm Pivotal into a hot market doesn’t solve its problems, but would provide capital and a path to a cleaner structure.

Samsung is poster child for the “Korea discount”

6 Apr 2018

First-quarter operating profit is likely to rise a blistering 58 pct to $15 bln. Yet Samsung’s shares look cheap, even allowing for challenges ahead in semiconductors. The best fix would be to build on the baby steps it has already taken to improve corporate governance.

Top Apple supplier makes case for branching out

2 Apr 2018

A one-off gain flattered quarterly results from Foxconn. But margins slid as the Taiwanese group grappled with rising expenses and the late release of the flagship iPhone X. No wonder boss Terry Gou is looking to cut the group’s heavy reliance on its Californian customer.