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Technology

Apple imagines away chip supplier’s future

3 Apr 2017

Imagination Technologies lost more than 60 pct of its value after the iPhone maker said it would stop using the UK firm's technology. That may wipe out half Imagination's revenue and any hope of profit for the time being. It's a risk small suppliers run with control-freak Apple.

Toshiba’s $18 bln sell-off breaks the mould

3 Apr 2017

Foreigners rarely get to buy big Japanese outfits. Even when they do, the company is either in deep trouble or at least needs some attention from a new owner. Toshiba's memory chip unit is a huge, healthy business in a concentrated market. No wonder bidders are queuing up.

Market gain is profit drain for China phone makers

3 Apr 2017

Three smartphone brands from the People's Republic account for a fifth of global sales. But the surge comes at a cost: Huawei’s earnings were flat last year amid rising costs and intense price wars. Trying to lure high-end customers from the likes of Apple will be expensive too.

Ericsson has solid targets but odd repair man

29 Mar 2017

Boss Borje Ekholm has new objectives to sort out the Swedish telecom-kit maker, whose stock has halved in value since mid-2015. Lifting depressed margins would be a challenge even for an outsider. It will be especially tricky given he sat on Ericsson’s board as it misfired.

Tencent drifts off course with Tesla

29 Mar 2017

The Chinese tech giant can easily afford a near-$2 bln stake in Tesla. But Elon Musk's electric cars are not a great fit with its cash-cow businesses, social media and mobile games. Making a huge, venture capital-style bet like this is a worrying sign of indiscipline.

Dubai mall owner throws sand in Amazon’s face

27 Mar 2017

Emaar Malls has challenged the U.S. retailer with an $800 mln counterbid for Souq.com. Amazon has technical expertise and deep pockets. But the owner of Dubai’s largest retail park has local knowledge, powerful allies and, most importantly, an existing business model to defend.

Next takes fashion tips from financial world

23 Mar 2017

The retailer has subjected itself to a stress test – previously the stuff of banks. The result: if a store’s sales fall 6 pct a year for a decade, its net profit margin will halve. Openness about problems is welcome. But this voluntary exam may gloss over some other risks.

Trump’s immigration policies may put Canada first

22 Mar 2017

The U.S. president praised his neighbor’s merit-based entry system for foreigners. But administration restrictions on H-1B visas may deter high-skilled workers and their employers. That could send tech and engineering talent north to friendlier hosts, hurting American firms.

Tencent’s new high score enables M&A attack mode

22 Mar 2017

The Chinese web giant’s revenue surged 44 pct to $6 bln in the fourth quarter, powered by games and advertising. Fast-growing payments and cloud computing units also contributed. To sustain growth and keep rivals at bay, Tencent's acquisition machine will have to go up a level.

SoftBank and Alibaba have Indian tangle to unpick

22 Mar 2017

A potential merger between Snapdeal and Paytm would take Masayoshi Son and Jack Ma off the warpath in India, where their flagship companies, SoftBank and Alibaba, have invested in the rival e-commerce unicorns. Such a truce would save investors money in the long run.

Goldman’s robo venture co-opts startup rivals

21 Mar 2017

The U.S. investment bank is the latest established player to build an automated private banking tool for clients. Standalone robo-advisory services are already struggling with lousy margins. Now, as more incumbents fight back, their best option may be to sell.

Sceptics of Vodafone’s Indian merger have a point

21 Mar 2017

A big merger of the British telco's India unit with Idea Cellular should create $10 bln of synergies. Yet Idea investors are pricing in barely one third of the benefits. It underscores fear that the new entity will not be in a much better position to take on cut-throat rival Jio.

Lyft gets free ride from Uber’s spate of accidents

20 Mar 2017

Lyft trailed so badly in the battle of ride-hailing services that it recently considered selling itself. But a series of crises at market leader Uber has enabled its smaller rival to attract riders, drivers and capital. Travis Kalanick’s missteps could make this a closer race.

Google and Facebook tipping balance of power

20 Mar 2017

The web-search giant lost Havas as a client in Britain and is being squeezed by the UK government over ad placements and policies. Similarly, Mark Zuckerberg’s social network faces outcries over fake news. Pressure is slowly but steadily mounting for this $1 trln digital duopoly.

Radioactive economics cloud Westinghouse’s fate

17 Mar 2017

The storied firm pioneered the use of alternating current in the 19th century and nuclear power in the 20th. Now massive losses have forced Toshiba to put it up for sale. Even if it can find a buyer, nuclear's dire economics and troubled politics make a third century doubtful.

Viewsroom: Intel’s pricey bet on driverless cars

16 Mar 2017

The chipmaker is shelling out $15 bln for autonomous-driving parts firm Mobileye, a cool 30 times estimated revenue. Intel missed the mobile-phone revolution. Is it finally on the right road? Plus: Washington bounces bitcoin’s bid for mainstream acceptance.

Tesla’s capital raise dangerously underpowered

16 Mar 2017

Elon Musk’s electric-car company will sell stock and notes worth just over $1 bln. Tesla is burning cash, and investing heavily to gear up for production of its Model 3. Unexpectedly small dilution pleases investors, but may miss the more important goal of capital sufficiency.

Lab-produced chicken faces battery of problems

16 Mar 2017

Vat-grown meat is potentially more efficient and humane than the stuff grown on the farm. “Clean poultry” suffers the same problems as other green technologies. There’s a chicken-and-egg issue with cost and size. Meanwhile, traditional rivals don’t pay for the costs they incur.

Toshiba has bigger headaches than share stigma

15 Mar 2017

Relegation to a lesser section of Tokyo's stock market would be humiliating, and prompt some forced selling. A delisting would hit investors harder. Whatever happens to the shares, management has more existential problems to fix, especially in its nuclear unit.