Consumer Electronics

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.

Sony loudly demonstrates love of content with EMI

22 May 2018

The Japanese group is buying 60 pct more of EMI Music Publishing from a consortium led by Mubadala. A valuation of $4.8 bln, or 19 times EBITDA, is deafeningly expensive. It leaves no room to doubt new boss Kenichiro Yoshida’s belief in a streaming-led recovery for the industry.

Speed matters for Toshiba’s new CEO

15 May 2018

Nobuaki Kurumatani’s plan for life after memory chips, while vague, suggests a welcome focus on returns. Electronics giants are slow-moving juggernauts, but with hedge funds to keep onside, he needs the $17 bln Japanese group to move faster than rivals like Hitachi have before.

China pivot reduces Foxconn’s appeal

15 May 2018

A Shanghai listing will separate out some of the $52 bln Taiwanese group’s most exciting businesses. It is buying back stock to offset the impact on its own earnings. That doesn’t change the fact that it is turning into an awkward mix of holding company and contract manufacturer.

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.

Foxconn is manufacturing a higher value in China

20 Feb 2018

The Taiwan assembler of Apple's iPhone plans to spin off a subsidiary onto the Shanghai exchange. Fresh funds will help it push into cloud computing and robotics. Given the new-share pricing norm of about 23 times earnings, Foxconn should be engineering even greater benefits.

Xiaomi IPO could plug into Internet of Things hype

22 Dec 2017

Sales at the Chinese tech company are booming, Reuters reports, probably thanks to a turnaround in smartphones. A mooted $100 billion valuation at listing sounds aggressive, but Xiaomi might be able to position itself as the first big consumer-facing play on the connected home.

Elliott takes activist-buyout firm fight to Japan

11 Sep 2017

The two Wall Street tribes are increasingly at odds. Now Elliott has bought into a $3 bln Hitachi unit that KKR covets, presumably seeking a better price. For private equity groups, mining Japan’s promising seam of corporate carve-outs may be about to get a little bit harder.

Rebooted UK-French software merger rewards patience

5 Sep 2017

After two botched attempts in as many years, French industrial group Schneider and UK software maker Aveva are trying to hook up again. The $3.9 bln deal is as complex as it is financially alluring. With past glitches ironed out, the merger has a good chance of becoming reality.

Dixons double whammy is surprise that wasn’t

24 Aug 2017

The UK electronics retailer’s shares fell 30 percent after profit guidance was cut. The main culprits, EU roaming rules and a Brexit-linked consumer slowdown, were known risks. Analysts and the company underestimated their impact. Too much faith in forecasts breeds market jolts.

Foxconn’s U.S. move sends false reshoring signal

27 Jul 2017

The Taiwanese tech giant will build a $10 bln display plant in Wisconsin. That is a symbolic victory for the president and other Americans who want to lure factory jobs from China. But for commercial and political reasons, a mass reverse-migration remains unlikely.

Ceconomy plays to German retail stereotype

26 Jul 2017

As befits a country known for thrifty shoppers, the newly listed electronics retailer has bought cheaply into Fnac Darty. While Ceconomy could probably afford a big premium to take over its French rival, it will take just a 24 pct stake – enough to keep rival bidders at bay.

Samsung rides the semiconductor cycle to new peak

7 Jul 2017

The South Korean firm expects a record quarterly operating profit of $12 bln, thanks to soaring demand for memory chips. Rivals are boosting supply, and prices will probably fall. Still, Samsung's size and diversity will help it handle the sector's inevitable boom and bust.

Philips deal healthier for patients than investors

28 Jun 2017

The Dutch healthcare equipment maker is buying loss-making US rival Spectranetics for more than 6 times next year's revenue in a $2.2 bln deal. Ramping up expertise in treating cardiac disease makes strategic sense, but the high price adds unhealthy financial side-effects.

Samsung gambles on an heirless future

31 May 2017

The South Korean giant will keep a structure that lets Jay Y. Lee keep control with a small stake. But a new left-leaning government might make it harder for the de facto leader to rule this way. Samsung looks unprepared for a future without its scion.

Next iPhone is key to Apple’s future in China

4 May 2017

Sales in what was once Apple's biggest growth market have now fallen for five straight quarters. Stiff competition with local handset makers and a weaker yuan both hurt. While app-store sales are promising, a real turnaround hinges on the success of its next flagship smartphone.

Reinvention of Philips is on a healthy track

24 Apr 2017

The Dutch group’s transformation from a conglomerate into a focused maker of health kit is in its final stage. After carving out lighting, boss Frans van Houten is making headway in lifting poor margins. The surgery is needed to close the valuation gap with pure-play rivals.

Toshiba meter sale may ease chip selloff pressure

3 Mar 2017

The stricken Japanese group is mulling a sale of its power meter subsidiary for $2 bln. The proceeds are unlikely to shore up finances much. But disposing of a non-core, underperforming unit is sensible, and it may help Toshiba hold on to more of its prized chip unit.

Apple sows seeds for India iPhone awakening

10 Feb 2017

The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.

Toshiba can salvage some value for shareholders

27 Jan 2017

The stricken Japanese group will sell a stake in its prized memory-chip business. Then it needs to take further steps to counter the fallout from a huge impending writedown. Today's $10 billion market cap seems a reasonable assessment of what will remain.