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Technology

Qualcomm’s big Korea fine is small part of problem

28 Dec 2016

The U.S. giant says it will fight a record $854 mln fine from the country's antitrust watchdog. But the bigger threat will be if South Korea forces the company to license patents to rivals. If other governments follow suit, the financial damage to Qualcomm could be high.

Facebook and Google will swallow the ad world

27 Dec 2016

The two Silicon Valley titans are expected to account for nearly half the $270 bln budget for digital advertising in 2018. Even China's behemoth, Alibaba, is a distant third. Such dominance makes it harder and harder for starry-eyed startups to build sustainable businesses.

Driverless cars will be steered by insurers

23 Dec 2016

Who's to blame in a crash when no one's at the wheel: owner, manufacturer, software developer or someone else? And what if two collide? The industry needs answers, even as autonomous vehicles threaten to erode $200 bln a year in U.S. premiums. Expect greater clarity in 2017.

Uber’s $70 bln value accrues mainly to customers

22 Dec 2016

Exiting cutthroat China should help, yet the ride-share giant may still lose $2.8 bln in EBITDA this year. Competition is tough even in U.S. cities like New York. Economics suggests Uber is valuable to its passengers. Turning a profit for investors, though, is a different story.

Breakdown: Fintech steps towards maturity

21 Dec 2016

Blockchain, robo advice and other technologies once hyped as the most disruptive to finance will take a back seat in 2017. The payments battle will step up a gear. Alternative lenders will hunt for deposits. And resurgent earnings may give U.S. banks a timely war chest.

Nintendo’s ups and downs reflect puzzle for market

20 Dec 2016

The delivery on "Super Mario Run", a crucial step into mobile gaming, looks poor. Making a successful leap to this new platform is key for Nintendo. But the shares have gone on a round trip, suggesting investors are struggling to decode what they've seen so far.

Canada’s busy deal maven both hands-on and not

19 Dec 2016

Prem Watsa has drafted an airtight policy for Fairfax's $4.9 bln offer for Swiss insurer Allied World, keeping close control of his company. Meanwhile BlackBerry, where he is lead director and a big investor, is trying to parlay its smartphone history into hands-off driving.

Hong Kong gets temporary face-lift from selfie IPO

15 Dec 2016

The city has burnished its financial centre credentials with photo-app Meitu's $629 mln listing, the biggest tech deal in a decade. Other Chinese entrepreneurs are watching intently. But Hong Kong's lacklustre aftermarket may still send mainland unicorns galloping to New York.

Verizon-Yahoo union faces death by a billion hacks

14 Dec 2016

The telecom giant's $4.8 bln deal to buy the internet outfit's core business was already in question after it revealed 500 mln user accounts may have been breached. Now Yahoo has flagged another intrusion, twice as large. It's increasingly easy – and smart – for Verizon to walk.

Tech needs to speak the president-elect’s code

13 Dec 2016

Most major Silicon Valley CEOs have heeded the call to Trump Tower. They may be expecting a browbeating, a deal for tax cuts – or both. Their real task, though, is to convince a hostile audience that they – and open societies – create wealth, jobs, security and power.

Philips brightens private equity’s gloomy corner

12 Dec 2016

Apollo has bought the Dutch company's LED and car lighting business for $2 bln. That's 40 pct below a Chinese bid that American regulators blocked on security grounds. Buyout firms can't easily outbid cash-rich Eastern investors. At least they can sometimes pick up the crumbs.

SoftBank’s U.S. swoop could net Symantec or Splunk

8 Dec 2016

The Japanese conglomerate is amassing a $100 bln war chest with Saudi backing, and is committing half that much to America. Masayoshi Son can make huge bets on emerging tech firms. Listed targets could include Symantec for cyber security, Splunk for big data, or even Twitter.

SoftBank’s $50 bln U.S. pledge is the easy bit

7 Dec 2016

The Japanese group is raising a tech fund twice that size, so boss Masa Son's promise to Donald Trump looks doable. It can also curry favour for his longed-for merger of SoftBank's Sprint and T-Mobile. But creating 50,000 jobs in the thinly staffed tech industry won't come easy.

Chinese selfie IPO only works in certain light

30 Nov 2016

Meitu wants a valuation up to $5.2 bln in its Hong Kong listing. Its user base is growing, thanks to features like virtual makeup and skin whitening. But most of its sales comes from selling smartphones. Mainland investors might buy the hype but the look doesn't travel so well.

Tesla teaches car rivals to love each other

29 Nov 2016

Competitors like Elon Musk's company are shifting big automakers into a more cooperative gear. Four arch-rivals have teamed up to build charging infrastructure for electric cars in Europe. Though collaboration keeps costs down, trustbusters need to keep their eyes on the road.

Samsung sets cautious tone with activist fund

29 Nov 2016

The $224 bln giant says it will consider using a holding company structure, a measured but welcome response to Elliott Management's restructuring proposals. Plans to boost dividends and buy back more stock also show the group is serious about improving shareholder relations.

Presidential scandal can spur reform at Korea Inc

24 Nov 2016

Popular fury over a corruption scandal in South Korea could give President Park Geun-hye’s successor a mandate for sweeping political and corporate changes. For investors, that could mean better governance at the likes of Samsung – and a revaluation of Seoul-listed shares.

U.S. visa pain could be ugly for Indian IT firms

23 Nov 2016

President-elect Trump is stacking his cabinet with immigration sceptics. It heralds a serious crackdown on visas for skilled foreign workers at a time when growth for Indian giants like TCS and Infosys is weak. Cash piles and fat margins provide only limited room to adapt.

Asia’s upstart robo-advisers face self-destruction

18 Nov 2016

Automated investment apps are popping up in the region; tech giants like Alibaba are eying the market too. Low fees make it hard to succeed without deep pockets or a large user base. If the U.S. experience is any precedent, small players are destined for the digital scrap yard.