Consumer Electronics

South Korea Inc heaps added pressure on Samsung

28 Apr 2022

The Galaxy maker’s 51% rise in quarterly operating profit, to $11 bln, only underscores its dependence on memory chips. Despite its ambitions in autos, biotech and other areas, peers Hyundai, SK and LG are moving faster to capitalise on new markets. Idle cash is a growing risk.

Sony and Nintendo play FOMO video-game challenge

31 Jan 2022

The financially robust makers of PlayStation and Switch generally prefer only smaller deals. Upheaval is coming, however, with Microsoft’s $69 bln plan to buy Activision. As console sales peak, pressure will mount for Japan’s timid buyers to develop bolder M&A strategies.

Taiwan’s TSMC is wisely cashing in more chips

13 Jan 2022

The $620 bln top chipmaker is hiking prices in response to the global shortage, giving up some of its relative restraint versus competitors. Coupled with voracious demand from the likes of Apple, the increase will pad profits even as it ramps up spending to maintain its huge tech lead.

Capital Calls: Microsoft, AT&T, American Airlines

7 Dec 2021

Concise views on global finance: Microsoft is finally being scrutinized with Europe’s probe of its $16 bln Nuance deal; U.S. lawmakers have antitrust worries about the telecom firm’s Discovery deal; American Airlines’ retiring CEO leaves shareholders short-changed.

Razer’s $4.5 bln buyout plan has a serrated edge

19 Nov 2021

The purveyor of pricey keyboards may swap a Hong Kong listing for one in New York as part of a management-led deal. A video-gaming fanbase gives it meme-stock potential while its Southeast Asian fintech unit might look hotter stateside. But any valuation gains may be subtle.

Sony seizes best of hardware and software worlds

28 Oct 2021

Sales of PlayStation consoles and other consumer electronics helped power quarterly sales to $21 bln. Games, music and movies shone too, as boss Kenichiro Yoshida doubles down on content. Even better for investors, a more cohesive strategy linking the different units is emerging.

Samsung etches fresh way to take on TSMC

8 Oct 2021

Memory chips are set to help lift the South Korean company’s quarterly operating profit 28% to $13 bln. Growth at its small semiconductor design and manufacturing arms also warrant greater attention. Customers like Tesla could make the units secret weapons against Taiwan's titan.

Capital Calls: Oatly, Sonos/Google

16 Aug 2021

Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.

Samsung boss parole sets high bar for dealmaking

10 Aug 2021

Jay Y. Lee’s early release from prison ramps up pressure on him to use the tech powerhouse’s $82 bln cash pile to make splashy investments to close a gap with rivals in chipmaking, autos and more. Samsung’s heft will force creative thinking. It’s a tricky combination to manage.

Samsung scrambles signals out of Southeast Asia

29 Jul 2021

The Galaxy maker partly blamed Vietnam’s virus resurgence for a 24% decline in mobile unit sales from the previous quarter. Low vaccination rates are thwarting the region’s recovery and raise fresh questions about just how reliable it can be for suppliers shifting out of China.

Alibaba may be Suning’s white knight in hiding

22 Jun 2021

The e-commerce giant’s 20% stake in the Chinese retailer has plunged by two-thirds in value since it bought it in 2015. The shares have further to fall as Suning faces $7 bln of debt due. Given Alibaba’s push into bricks-and-mortar commerce, a takeover could benefit both sides.

Toshiba mess will be useful national embarrassment

10 Jun 2021

An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.

Electronic waste unearths green China unicorn

8 Jun 2021

Used-phone retailer Aihuishou wants to go public at a $5 bln valuation. Thanks to frugal and environmentally conscious shoppers, demand for second-hand goods is booming. The company has yet to turn a profit, but backer JD's deep pockets and rare ESG credentials should appeal.

Capital Calls: Klarna, Dan Loeb, Fashion IPO

28 May 2021

Concise views on global finance: The Swedish “buy now, pay later” group’s possible $50 bln price tag may leapfrog rivals Afterpay and Affirm; the corporate agitator deserves a taste of his own medicine; About You’s mooted 3 bln euro valuation implies a discount to rivals.

Capital Calls: Endeavor’s Hollywood ending

29 Apr 2021

Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.

Who wants to be an electric-car billionaire?

8 Apr 2021

In China, who doesn’t may be the better question. Dishwasher maker Haier, property developer Evergrande and smartphone maker Xiaomi are piling into the over-invested sector. They may disrupt the industry; they will certainly accelerate the coming bloodbath.

Capital Calls: Twitter time-wasting, News Corp

25 Mar 2021

Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.

China’s Xiaomi risks wasting its good luck

25 Mar 2021

The $81 bln smartphone maker grew adjusted quarterly earnings 37%. Suspension of a U.S. ban, plus the suppression of rival Huawei’s smartphone business, helped enormously. It is missing a golden opportunity, however, to achieve a goal of expanding beyond low-margin hardware.

Chip shortages are here to stay, for some

2 Mar 2021

Pandemic-led demand swings and trade wars have left factories short of semiconductors. The chip industry’s too-successful capital discipline is also a factor. The $450 bln industry’s coming splurge on new capacity will benefit smartphone manufacturers more than automakers.

Toshiba gets in its own way yet again

14 Jan 2021

The $13 bln Japanese conglomerate is under fire from hedge fund Farallon over its strategy while Effissimo wants a probe into a vote scandal. Their demands for shareholder meetings reflect a lack of trust in boss Nobuaki Kurumatani that’s also evident in a lacklustre valuation.