Electrical Equipment

Chinese IP awareness, sown by West, bruises Apple

3 Jul 2012

The gadget maker can easily afford the $60 mln it’s paying for the iPad name in China. And a lawsuit over Snow Leopard poses little threat. Still, the Middle Kingdom is increasingly alert to trademarks, patents and so on. Western multinationals wanted that, but it cuts both ways.

Microsoft tablet suffers from lack of greatness

19 Jun 2012

The software giant’s latest foray into consumer gadgets looks better than earlier attempts - remember Zune? That’s good, as a growth of mobile devices leaves it no choice but to compete with Apple and Android. But while its tablets show some promise, that’s probably not enough.

Samsung investors should worry less about Apple

17 May 2012

The Korean company’s shares slid over fears Apple might use fewer of its chips, and buy more Japanese ones instead. Apple may diversify its suppliers, but that just reflects the fact that smartphone demand is outpacing parts supply. Samsung’s valuation looks too low.

Samsung moves on from Japan to nibble at Apple

27 Apr 2012

The Korean company learned by pulling apart Japanese electronics, then reverse-engineering the business model. Having taken the lessons, it has built a commanding position in TVs and smartphones. As Apple tackles emerging markets, Samsung is showing it is still hungry.

Sony’s overhaul doesn’t go far enough

12 Apr 2012

The new CEO aims to reverse $6.4 bln in losses by rewiring the TV unit and pushing further into smartphones and medical devices. One-off charges now may flatter earnings later, but the tech company may need new equity to expand. Sony needs deeper cuts and more radical re-rigging.

Nokia suffers another bite from Android

11 Apr 2012

The Finnish firm’s smartphones are losing yet more ground to Apple and phones running Google’s operating system. Worse, cheap handsets using Android are now invading Nokia’s former safe havens in emerging markets. A turnaround looks less likely, and further away if it ever comes.

Sweat-free iPads come at a price worth paying

30 Mar 2012

Apple scores points for pushing to improve life for workers at the Foxconn “iGadget” factories in mainland China. But change may have been inevitable thanks to rising wealth and labour shortages. Consumers, ultimately, may have to foot the bill, but they should be OK with that.

Taiwanese money can’t save Japan from Samsung

28 Mar 2012

Foxconn’s $1.6 bln investment into Sharp buys Japan’s electronics company time. But there’s a huge glut in flat-panel screens and the likes of Sharp, Panasonic, Sony and Toshiba may be fighting a losing battle against the Koreans. As Hitachi has shown, it may be best to withdraw.

Olympus investors shouldn’t bleat about its banks

21 Feb 2012

Investors are upset that the company’s banks want to appoint a CEO to pursue a break-up. The snag is that Olympus’s banks are also longstanding shareholders, which gives them special rights. New investors who have bought in opportunistically should have done their research.

Sony resets ahead of management reboot

2 Feb 2012

The $2.9 billion of forecast losses for the year reflects a year of glitches. Thai floods, the strong yen and JV write-downs all caused problems. With expectations set low, incoming CEO Kazuo Hirai can focus delivering the winning products and software Sony currently lacks. But it won’t be easy.

Olympus must dump its board to save itself

15 Dec 2011

The Japanese company’s board wants to hang on until March. That’s too long. Even though it beat an earnings deadline, Olympus still risks being delisted over ongoing accounting concerns. A fresh board can only help, and should also placate creditors and help buoy up the stock.

Olympus’ ex-CEO no shoo-in for post-scandal return

6 Dec 2011

Michael Woodford wants his job back at the Japanese group now that those accused of covering up investment losses have left the board that fired him. But the same board hired him, and he only ran the company for six months. Olympus shareholders should make sure to look around.

Collapse not yet likely for battered Olympus

11 Nov 2011

The scandal-racked Japanese company could see its shares delisted, and its debt burden is formidable. But its core medical equipment business provides strength. A strike by suppliers, creditors and customers could push Olympus over the edge, but that still looks remote.

Olympus mystery may hinge on M&A accounting

9 Nov 2011

The company hasn’t said how it used takeovers to hide decades of investment losses. Japanese goodwill accounting might provide a way, by allowing companies to pay big takeover premiums and advisory fees and write them down over time. It’s time Japan closed this loophole.

Olympus casts shadow over corporate Japan

8 Nov 2011

The Japanese group admitted covering up investment losses for 20 years. That could spell fines and even jail sentences. But Olympus isn’t the only company that lacked necessary checks and balances. Its listed peers may now need to prove that shady accounting wasn’t catching.

Olympus investors price in a worst-case scenario

8 Nov 2011

Shares in the Japanese company have fallen 70 percent as gruesome news of misdeeds in deals has emerged. But assuming the core business is viable – and Olympus escapes giant penalties – significant value may lie beneath the mess. Only the bold will be tempted, though.

Japan Inc’s earnings problems are home grown

7 Nov 2011

Honda, Panasonic and Sony all reported grim quarterly earnings. Weak global demand, a strong yen and natural disasters are partly to blame. But they underscore deeper problems caused by domestic policies and Japanese exporters’ long-standing neglect of profit margins.

LG rights issue won’t help it win smartphone wars

3 Nov 2011

Investors dumped shares in the Korean electronics maker even before it announced a surprise $1 billion cash call. Loss-making LG has fallen behind Samsung and Apple in the race to make trendy smartphones. It’s not clear how throwing good money after bad will help.

Boardroom rejig still leaves Olympus adrift

26 Oct 2011

The Japanese camera-maker, racked by accusations from its ousted CEO, has sidelined its 70-year-old chairman. But Kikukawa will stay on the board, along with 13 other former Olympus managers. Shareholders need to call for new blood to put the rudderless company back on course.

Olympus scandal wakens Japan’s sleeping investors

21 Oct 2011

Nippon Life has joined foreign investors asking the company to clear up accusations by its ousted CEO. Growing outlays for Japan’s aging society are turning once passive insurers into activist shareholders. If only its banks, who are even bigger investors, would get on board.