Technology

Samsung trial tests South Korea’s rule of law

9 May 2017

Bribery charges have turned the group's de facto leader, Jay Y. Lee, into a public enemy. A guilty verdict, if merited, could help rebuild trust in the system after an epic corruption scandal. It is equally important that he gets a fair trial despite the popular outrage.

Time for Siemens investors to forget troubled past

4 May 2017

For decades, the German engineering group’s poor margins and talent for botching large-scale projects justified a persistent discount to peers. Quarterly results confirm turnaround CEO Joe Kaeser has fixed both issues. If shareholders agree, Siemens could be worth 9 pct more.

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.

Tesla demonstrates valuation staying power

3 May 2017

Boss Elon Musk vows that annual Model 3 production alone can meet the company's target of 500,000 vehicles by the end of 2018. That should be enough for the electric-car maker's faithful to overlook past missed goals and growing competition, and keep the stock unjustifiably high.

Indian IT torn between job-hungry world leaders

2 May 2017

Infosys plans to hire 10,000 Americans over two years. That makes sense. Outsourcers are expanding services that require more face-time with clients and U.S. visas may become harder to obtain. But good news for President Donald Trump is bad for Indian premier Narendra Modi.

Review: A disappointingly tepid Circle of hell

28 Apr 2017

The movie of Dave Eggers' 2013 novel "The Circle,” starring Emma Watson and Tom Hanks, explores a cultish, all-seeing internet company. The film's take on the near future reflects real privacy and surveillance issues. But like its protagonist, its sense of identity is weak.

Samsung’s choice of Plan A doesn’t quite add up

27 Apr 2017

The South Korean giant's board rejected a restructuring pushed by Elliott, the hedge fund. Possible legal changes do indeed threaten the transformation. But that does not justify ruling out any future overhaul. Investors deserve an answer on how it will fix its odd structure.

Tech exuberance drives Didi to a $50 bln valuation

27 Apr 2017

China's top ride-hailing app is raising up to $6 bln. With no competition at home, the extra firepower seems unnecessary. A big chunk of the cash will probably go into counterparts abroad. It’s a fresh sign the huge sums raised by SoftBank and others are inflating startup values.

Half-hearted crackdown dents case for Chinese P2P

26 Apr 2017

Peer-to-peer lender China Rapid Finance is set for a $100 mln-plus New York IPO. This looks badly timed: new rules last year failed to rid the industry of cowboys, and rival Yirendai trades at a low valuation. With that backdrop, sector heavyweight Lufax is unlikely to list soon.

Toshiba axing PwC would be ugly bid to stay listed

26 Apr 2017

The Japanese group may ditch its recently hired Big Four auditor for a smaller firm, the Nikkei reports. That won't win back trust from regulators and investors. But Toshiba is desperate to retain its stock market presence, and the impasse with finicky PwC put that at risk.

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.

Activist in Japan ups the ante and gets results

24 Apr 2017

Hong Kong hedge fund Oasis forced Panasonic to change tack and sweeten its offer for the rest of subsidiary PanaHome. Floating its own counterbid made the difference. But the new $839 mln cash offer is still far from a knockout. There could be more moves and countermoves ahead.

Markets are wary of new blot on Japan Inc’s image

21 Apr 2017

Fujifilm has discovered dodgy accounting in its Kiwi unit. It is merely a $200 mln flub. But investor anxiety is understandable. What looked like a manageable accounting problem at Toshiba spiralled out of control. The photocopier-maker's mediocre governance is unhelpful too.

Samsung’s enemies pick the wrong battle

20 Apr 2017

Politicians in Seoul want to stop Samsung restructuring using treasury stock. They argue it's a trick for the ruling Lee family to gain more control cheaply. But the resulting firms would be worth more, and be better run. Keeping the status quo would be a Pyrrhic victory.

Chinese news app gets a sci-fi valuation

18 Apr 2017

A recent fundraising values Toutiao at $11 bln. Mainland advertisers are flocking to mobile apps, and Toutiao has a huge user base. But news feeds are not new and the business model has disappointed in the West. Buzzwords such as AI and big data are like clickbait for investors.

Infosys cash return is a welcome distraction

13 Apr 2017

Boss Vishal Sikka is following rivals TCS and HCL in returning $2 bln of its unused war chest. The move reflects a shortage of big takeover targets. It should help to lift some gloom around the Indian IT firm, given slowing growth and a public spat between its founders and board.

Foxconn’s offer to Toshiba is too rich to ignore

11 Apr 2017

The Taiwanese giant is reportedly dangling a $27 bln offer for Toshiba's memory unit. This could be bluster: Foxconn must bid high to offset political concerns, and may end up cutting its price. Still, Toshiba owes it to long-suffering investors to take this seriously.

India’s tech poolside is running out of sunbeds

10 Apr 2017

Tencent, eBay, and Microsoft are piling into Indian e-commerce with a $1.4 bln investment in Flipkart. Japan’s SoftBank already backs local rival Snapdeal. Attractive as India is, having so many global tech groups rubbing shoulders ensures not everyone will get what they want.

China’s Netflix-to-Tesla still awes investors

7 Apr 2017

LeEco's $2 bln purchase of U.S. TV-maker Vizio is reportedly stalled. That would add to a list of setbacks. But shares in LeEco's flagship listed unit still command a big premium to giants like Tencent. It takes a lot to shake Chinese investors' love of concept stocks.

Fantasy gaming IPO has real-life charms

6 Apr 2017

Netmarble wants a valuation of up to 65 times last year's earnings in a $2 bln-plus IPO. The South Korean maker of online role-playing games is growing fast, and profitability is improving vastly. So that figure is not as fantastical as it looks - provided the hits keep coming.