Information Technology

Regulators further fetter Intel’s quasi-monopoly

13 May 2009

Dominance hasn t led to growth. Despite selling 80% of all microprocessors, Intel s revenues have expanded a mere 1% a year since 2000. Customers just aren t shelling out for new, faster chips. And more antitrust problems witness the EU s E1bn fine will add to its headaches.

Microsoft’s debt offer matters – to Microsoft

12 May 2009

The software giant is set to issue nearly $4bn of bonds. It doesn t need the cash, not with a $170bn market capitalisation, prodigious cash flows and no debt. But the rapturous reception of Microsoft s first ever bond issue says more about the company than the credit markets.

Tech bellwether profits predict distant recovery

28 Apr 2009

Earnings season for industry giants like IBM and Microsoft was mostly a story of unexciting results and tepid guidance. Tech outperformance usually presages recoveries. When the technology Pollyannas don t believe good times are just around the bend they probably aren t.

Arbs aren’t buying PCCW’s buyout plan

14 Apr 2009

It looks like a juicy profit. The Hong Kong telecom is trading for 10% less than shareholders agreed to take from tycoon Richard Li. But the deal was made in better times. So Li might not mind if regulators shoot it down. He might even be looking for a semidignified way out.

Satyam fallout limited, but India can do more

9 Mar 2009

A sale process has begun for the stricken IT outsourcer, only three months after a $1bn accounting fraud was revealed. Bidders are queuing up. The Indian government has dealt with the scandal well, but one thing is still missing a successful prosecution.

Bargain laptop could help Apple weather downturn

9 Mar 2009

The Mac maker is rumoured to be devising a touchscreen portable to hawk for less than its standard offerings. If so, that could help it weather the industry slowdown. But Apple would need to be extrainventive to avoid cannibalising its highermargin fare.

PC makers face long-term decline

2 Mar 2009

The number of PCs sold this year may fall 12% according to a new estimate, and prices are tumbling. Worse still, virtualisation and the rise of ultracheap models mean PC makers' problems won t lift when the economy recovers.

Microsoft gets selective with Great Depression lesson

25 Feb 2009

Boss Steve Ballmer rightly says hard times are no time to cut R&D budgets. He points out RCA s research in the 1930s led to decades of dominance in television. Curiously, he neglects to mention RCA s massive legal campaign against TV s inventor.

Dell takes another futile bite at Apple

30 Jan 2009

The PC maker has long been Apple's mirror image producing bland, cheap computers rather than premiumpriced clever ones. Dell's efforts to make an iPhone clone will probably be as unsuccessful as its attempt to muscle into iPod s turf in digital music players.

Microsoft is no longer an unstoppable force

22 Jan 2009

The software maker surprised the market with results below expectations. And it s laying off 5,000 employees the first mass cuts in its history. The miss underlines its vulnerabilities. CEO Ballmer needs to stop playing video games and focus on his core business.

Jobs leaves Apple with plenty of money spinners

21 Jan 2009

The hip gadget maker s earnings smashed expectations. They were largely driven by biggerthanexpected iPod sales and its resurgent Mac computer line. If Steve Jobs doesn t return to the helm, Apple s next chief will at least have several strong products to offer breathing room.

Yahoo’s ho-hum CEO pick faces steep challenges

13 Jan 2009

The struggling internet company went the safe route by picking Carol Bartz as its new leader. While her experience makes her an adequate choice, she doesn t look like a game changer. But that may be what s needed to conquer the difficulties on Yahoo s horizon.

Satyam’s $1bn fraud isn’t just an Indian problem

9 Jan 2009

The Indian IT software firm was also supposed to meet US accounting standards. Something clearly went wrong and the excuses are already flowing thick and fast. The history of high profile fraud suggests the accountants, PricewaterhouseCoopers, will find it hard to escape blame.

Steve Jobs is worth $20bn to Apple shareholders

17 Dec 2008

Ok, this isn t scientific. But the value of each of Apple s businesses can be calculated. The premium the stock fetches to them reflects investor faith in the CEO s ability to stitch the whole together. That s why questions about Jobs health matter.

PC makers should lock up emerging markets

11 Dec 2008

Computer sales are falling. Ultracheap notebooks and emerging markets are among the few remaining areas of decent growth. Lenovo s talks with Brazilian PC maker Positivo Informatica could be an effort to cover these bases. Rivals should avoid getting left behind.

HP’s turnaround looks good – for now

18 Nov 2008

Tech demand may have seized up, but HP's quarterly results show the firm chugging along smoothly. Shareholders may want to thank CEO Mark Hurd s stringent costcutting programs. Weak competitors like Dell and Sun don t hurt, either. But the party may not last much longer.

Yahoo gives new meaning to search

18 Nov 2008

The internet group is kicking off a hunt to replace boss Jerry Yang. The founder will return to his Chief Yahoo role, but the company has a less clear destination. Not naming an internal candidate may simply be good governance. But more likely it's a signal of no confidence.

Microsoft’s riches alone won’t buy success

23 Oct 2008

The software giant is churning out the dollars despite economic woes. The cash is going in the right directions to shareholders and to fix the lumbering Vista. But with rivals stronger than ever, Microsoft will need more than money to keep profits from gradually fading.

Yahoo could be junkyard treasure

22 Oct 2008

The stumbling internet group has become Wall Street's punching bag. But the beating's gone too far. After stripping out its Asian assets and cash, Yahoo's core businesses look undervalued. For investors with a stomach for risk, Yahoo might be a steal.

Apple missed market share opportunity

15 Oct 2008

The maker of the iPhone and iPod is known for trendy offerings, not cheap ones. But by failing to deliver a bargainpriced notebook, Apple missed an opportunity to increase its share of the computer market. The cheap portables trend is real, fashion is fleeting.