Information Technology

Apple’s platforms are its hot new product

10 Sep 2008

The iPod maker s latest corporate love fest didn t include any unexpected toys, sending its shares sliding. But what it did reveal should be more exciting to shareholders than another gizmo. Apple s focused on building the best platforms now, not the best gadgets.

Dell can’t sell its way out of trouble

4 Sep 2008

The PC giant just released a mini laptop for $399. But another cheap offering won t patch Dell s wounds. Its business model is broken and its balance sheet is in disarray. Shareholders shouldn t expect a new product to be the salve.

Does Apple’s iPod matter any more?

3 Sep 2008

The tech company looks set to unveil a new product. Chances are, it's a new iPod. That should help boost the music player's flagging sales growth. But nowadays, the iPod is far from Apple's biggest moneyspinner. Shareholders should focus most intently on Mac computer sales.

Yahoo’s botched election raises questions

6 Aug 2008

The internet company initially said its chairman and CEO were comfortably elected. Instead, an extraordinary revised tally shows a huge protest vote. Among the questions it raised: is Yahoo so distant from shareholders that it thought the initial results correct?

Yahoo reveals its dismal hand

23 Jul 2008

The internet group announced anaemic secondquarter results demonstrating why it needs to be gobbled up by Microsoft. It s growing like a utility and hasn t announced any feasible alternative to create value.

Should Apple CEO’s health be a private matter?

22 Jul 2008

The gaunt appearance of boss Steve Jobs has investors wanting answers understandably, given his iconic status. But the company says Jobs health is a private matter. And it should be, provided the board has succession plans in place.

Apple is a computer company after all

21 Jul 2008

Apple gets heaps of press for the ubiquitous iPhone and iPod. But its Macintosh computers are its real raison d être. As the portable music and smartphone markets saturate, Apple will need to rely on selling computers to meet Wall Street s huge growth expectations.

A bid on Ebay might pay off

17 Jul 2008

The auctioneer beat Wall Street's expectations last quarter despite a feeble economy. Yet investors have sent its stock down 21% this year. Now it looks cheap. Its auction business remains strong and the company does well when consumers are skittish. Ebay could be a steal.

Microsoft could learn from Inbev’s recipe

16 Jul 2008

By snapping up resistant AnheuserBusch in short order, Inbev offered a tutorial on buying companies that don't want to sell. Seeing how Microsoft has handled its sloppy dance with Yahoo, it's clear the software giant could benefit from a lesson.

Activist victory at Atos could shake up France SA

28 May 2008

Two hedge funds have won their battle to force the IT services company to focus on shareholder value. The French companies that already feel the pressure of such professional investors should take notice. More companies might even start to accept tough love from shareholders.

Market has got HP wrong on $14bn EDS purchase

13 May 2008

This is the rare deal where the numbers work: HP s returns will exceed its cost of capital. Yet the strategy of expanding into a lowergrowth business has led to a wipeout nearly equal to the purchase price. That s silly. After all, HP can always spin the thing off.

HP won’t repeat Compaq disaster with EDS deal

12 May 2008

The tech company has spent several years undoing damage from its fateful takeover of Compaq. Now it is reportedly close to buying IT services company EDS for up to $13bn. While risky, it makes far more strategic and financial sense.

Routine Apple results spook investors

22 Jan 2008

The tech company as usual beat cautious estimates and said next quarter will be tougher. Seasoned Apple watchers should have expected nothing less. But troubled markets and Apple s high multiple are all the justification investors needed to pull back.

Apple envy runs deep at tech extravaganza

9 Jan 2008

Everyone huddling in Vegas for the world's biggest consumer electronics show, from VCs to tech groups like HP wants to mimic Apple's success and high margins by selling gadgets and digital content to run on them. It's easier said than done.

Nintendo could pay for Wii buzz

21 Dec 2007

The Japanese group s game console is still sold out in most US stores 13 months after its debut. Whether manufactured or not, the shortage keeps the Wii buzz and game console s price up. The cost is lower margins.

Perry shows activism can succeed in Japan – sort of

19 Dec 2007

Japan can be a frustrating place for investors, as Perry Capital's struggle with NEC shows. But Perry hasn't failed. It got the chipmaker to accelerate its costcutting efforts. This small success offers other investors a faint glimmer of hope.

Tech can’t escape slowing US capex

8 Nov 2007

Cisco, like its tech brethren, has had a hot year thanks to a falling dollar, heady sales to developing countries and rising investment in the US. But Cisco s results suggest corporate America's capital expenditure wheel has fallen off and other tech groups could be hit.

Apple set to keep on rolling

22 Oct 2007

The iPod maker has unveiled another spotless quarter. And Apple notorious for sandbagging its prospects said Wall Street estimates were too conservative. With a new operating system rolling out and the iPhone just getting started, it has several quarters of growth ahead. Apple s $160bn market cap may not be so batty after all.

Intel and AMD face slower future

4 Oct 2007

Overcapacity has hurt both chip groups. There s little chance pricing pressure will abate given AMD s need to maximise cash flow. The longterm could be worse. Total microprocessor revenues have steadily shrunk since 2003 when chip speeds suddenly plateaued.

Freescale may be private equity bellwether

19 Sep 2007

The private equity bubble of the 80s sputtered when financing deals became difficult. A wave of subsequent defaults caused real pain. LBOs have now ground to a halt. Falling debt prices in chip maker Freescale could be a sign of another step down.