Information Technology

ARM is good, but not as good as the shares suggest

2 Feb 2011

The company's business designing lowpower chips for mobile devices is going full tilt. ARM is using its position to capture large chunks of the markets for chips in everything from servers to autos. But an awful lot of rosy future is already baked in the stock's valuation.

Jobs leaves Apple juggernaut with a head of steam

18 Jan 2011

Investor concerns over succession and the CEO s health are warranted. But Steve Jobs leave of absence coincides with an eyepopping set of results, including 7.3 mln iPad shipments, which smashed expectations. With or without him, Apple shows no signs of slowing any time soon.

Apple needs more formal delegation of Jobs’ power

17 Jan 2011

Steve Jobs is handing daytoday control of Apple to chief operating officer Tim Cook due to health issues. Yet he retains the CEO title. It's the third such move, and this time it is indefinite. However painful, a more formal transfer to an acting CEO would have been better.

Anti-Apple brigade readies group therapy session

5 Jan 2011

The giant tech confab CES kicks off on Thursday, again without any of Steve Jobs hipster crew. Their absence will be more acutely felt than ever, as rivals rush to show off answers to the iPad. Expect happy talk, defensive posturing, and denial but little consumer validation.

Apple still looks a bargain after $100 bln run

30 Dec 2010

Large companies rarely grow quickly. Nonetheless, Apple increased sales by more than 50 percent in 2010. That sent the company's value up by an astonishing $100 billion. Yet the stock's valuation still looks oddly subdued once adjusted for the company's cash pile.

i-banking expansion makes sense for StanChart

29 Nov 2010

While many rivals are reducing their exposure to volatile ibanking, StanChart plans to boost the division with 1,800 hires. Its earlier push into high finance is already bearing fruit. With emerging market trading and dealmaking volumes growing quickly, the plan looks sound.

SAP could lose more than $1.3bln on Oracle verdict

24 Nov 2010

The German software group must pay its U.S. rival the huge sum after infringing copyrights. Even though the figure may shrink on appeal, the case will hurt SAP's bottom line, business and reputation. Meanwhile, Oracle's Larry Ellison is laughing all the way to the (data) bank.

LSE shutdown highlights exchange vulnerability

3 Nov 2010

The London Stock Exchange suspects that foul play shut down its alternative trading venue for over an hour on Nov. 2. Though worrying, that is less embarrassing than a technical glitch. Even so, it's another reminder that traders cannot take market infrastructure for granted.

Larry Ellison’s anti-HP rant turns weirdly sloppy

27 Oct 2010

Oracle's boss is known for his acerbic tongue. Yet his latest grammaticallychallenged latenight missive daring HP's new CEO to show up in court looks downright bizarre. Perhaps the prospect of tougher competition with HP is getting under Ellison's skin.

Apple still about the iPhone – for now

18 Oct 2010

Sales and earnings both grew by twothirds or more in the tech group s latest quarter, compared with a year earlier. Yet teething pains kept iPad sales below bullish predictions of nearly 5 mln. In the meantime, the iPhone's growth looks at least an equally important story.

Seagate buyers should beware the iPad

15 Oct 2010

The disk drive maker may look a natural LBO candidate. It has been one before, and its $7.1 billion enterprise value is cheap at less than four times estimated EBITDA. Yet past may not be prologue. Fastgrowing tablet devices could easily swipe more of Seagate s future value.

iPad’s destructive reach extends further faster

7 Oct 2010

Apple s tablet is taking off at a breakneck rate. Analysts now predict up to 40 mln will be sold in 2011. With income and spending stagnant, it s looking like a zerosum game in consumer electronics. Forget PCs and netbooks. The iPad will eat into camera and GPS device sales too.

Flash crash report shows how, er, crashes happen

4 Oct 2010

There's no real blame. Preexisting jitters and one large trade, overlaid with computerized trading and data glitches, led U.S. stock market liquidity to dry up briefly on May 6. Some fixes are possible. But the broader lesson is that markets will always have tipping points.

HP at least half-right with new leadership choices

30 Sep 2010

The tech company s decision to appoint exSAP boss Leo Apotheker as CEO raises questions. He was forced out at SAP, and may have a tough time firing up HP s troops. On the other hand, HP s decision to split the chairman and CEO roles is solid.

HP’s best bet for new leader lies within its ranks

30 Sep 2010

The tech group s search for Mark Hurd s replacement is leading to overheated speculation about which outsiders, from IBM or Apple, might get the job. But an inside candidate would be better placed to repair tattered morale and less likely to cause an exodus of talent.

AOL’s spending spree doesn’t speak to a strategy

28 Sep 2010

The Internet firm is redeploying cash from its fastfading dialup business into the acquisition of dotcom sites. Fair enough AOL needs to remake itself. But it s hard to see an investment thesis in buying a video syndication firm, a hyperlocal journalism site and tech blogs.

IBM promises discipline one week, pays up next

20 Sep 2010

Big Blue boss Sam Palmisano rubbished rival HP for overpriced acquisitions. Now his firm is paying $1.7 bln, a lofty 65 times expected 2010 operating profit, for data and analytics outfit Netezza. At this buzzinflated price, it will take fancy footwork to make the deal pay off.

Cisco finally chooses growing up over growing

15 Sep 2010

The tech giant is ready to pay its first dividend after a decade of deals and share buybacks delivered zero return to investors. With revenue growth hard to come by, Cisco is starting to accept maturity after 20 years of public life. But the 12 pct payout is merely a good start.

Apple takes preemptive antitrust strike

9 Sep 2010

Regulators have grown increasingly worried by Apple's monopolistic potential in the mobile market. The company's decision to publish rules governing its online store, greenlight Google to advertise within apps and allow developers to use Adobe may forestall government action.

Walter Hewlett could give HP its Steve Jobs moment

8 Sep 2010

The man whose name is on the tech company's door led a campaign against Carly Fiorina's troubled reign and her Compaq deal. He turned out to be right. HP's board clearly needs a wholesale shakeup after botching the Hurd affair. Why not let him lead the effort as chairman?