Editor’s Note: Related tickers: Apple Inc. (NASDAQ:AAPL), Research In Motion Ltd (NASDAQ:BBRY), Google Inc (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Nokia Corporation (NYSE:NOK), Cirrus Logic, Inc. (NASDAQ:CRUS), Exxon Mobil Corporation (NYSE:XOM), Amazon.com, Inc. (NASDAQ:AMZN), Viacom, Inc. (NASDAQ:VIAB), International Business Machines Corp. (NYSE:IBM)
Apple slowdown threatens $30 billion global supplier network (WashingtonPost)
Apple Inc. (NASDAQ:AAPL)’s slowing sales are rippling through a supplier network that has long benefited from the company’s ability to churn out iPhones and iPads. Cirrus Logic, Inc. (NASDAQ:CRUS), a maker of audio chips that gets 91 percent of its sales from Apple, this week reported an inventory glut that suggested slowing iPhone sales, and forecast fiscal first-quarter revenue below analysts’ estimates. Hon Hai Precision Industry Co., Apple’s top supplier, this month posted its biggest revenue decline in at least 13 years, indicating slower sales of smartphones, tablets and computers. Apple’s breakneck growth to $156.5 billion in revenue last year, from $24.6 billion in 2007 when the iPhone debuted, supports an ecosystem of at least 247 suppliers across the globe. They relied on Apple to deliver $30.1 billion in orders in the latest reported quarter, according to supply-chain data compiled by Bloomberg. As a result, many are now vulnerable after building up inventory in anticipation of continued growth, according to Michael Hasler, a lecturer at the University of Texas in Austin.
At $385.10, Apple Inc. ex-cash has never been so cheap (CNN)
In the fall of 2000, when you could buy Apple Inc. (NASDAQ:AAPL) for $7, the stock’s value measured by how much profit it was generating for each outstanding share — the famous PE ratio — hit an all-time low of 5.76, according to Wolfram Alpha (see chart below). On Friday morning, when the stock touched $385.10, Apple’s value hit a new low. With $137.1 billion in cash and marketable securities as of December, Apple’s PE ratio ex-cash hit 5.42. That’s almost certainly a modern record for a company of this size, profitability and growth rate.
Apple Stock Falls to One-Year Low on Supplier News (ABCNews)
Shares of Apple Inc. (NASDAQ:AAPL) fell below $400 for the first time in a year and half on Wednesday, after a supplier hinted at a slowdown in iPhone and iPad production. The stock was down $21.89, or 5.1 percent, at $404.35 in early afternoon trading. Earlier in the day, it hit $398.11, the lowest level since Dec. 2011. The decline means Apple has —for now— lost its position as the world’s most valuable publicly traded company to Exxon Mobil Corporation (NYSE:XOM), which has a market capitalization a few billion dollars above Apple’s $380 billion price tag. Late Tuesday, Cirrus Logic, Inc. (NASDAQ:CRUS), which supplies audio chips for the iPhone and iPad, said sales of a particular chip are slowing down as an unnamed customer moves to a newer component.
Apple Jitters Weigh on Asian Suppliers (WSJ)
Worries about falling sales at Apple Inc. (NASDAQ:AAPL) spread to Asia Thursday, weighing on shares of the U.S. company’s suppliers. Apple’s shares fell 5.5% overnight after iPhone supplier Cirrus Logic, Inc. (NASDAQ:CRUS) warned of a large inventory write-down because of “a decreased forecast for a high-volume product” from a customer. Cirrus Logic didn’t identify the customer, but it was enough to worry investors looking for signs of falling iPhone and iPad sales. In Wednesday’s trading, Apple shares fell briefly below $400 for the first time since 2011.
Apple was reportedly in talks with Goodreads for iBooks integration (NDTV)
It appears that book-recommendation service, Goodreads had been in talks with Apple Inc. (NASDAQ:AAPL) to integrate its service with the latter’s iBookstore, before being acquired by Amazon.com, Inc. (NASDAQ:AMZN). A report by The Wall Street Journal suggests that Goodreads and Apple were in talks on bringing Goodread’s reviews and ratings appear within iTunes’ iBookstore when users searched for a book title. The report cited people familiar with the talks to inform that the talks didn’t reach a conclusion, and when Apple executives tried to reach Goodreads again, it had got close to Amazon which insisted that it stopped talking to other companies. The report also suggests that an Apple executive not part of iBooks approached Goodreads to explore ‘other options’ but Goodreads refused.
Penguin offers to scrap Apple ebook deals to end EU antitrust case (NDTV)
British media group Pearson’s Penguin unit has offered to scrap e-book deals with Apple Inc. (NASDAQ:AAPL) that imposed price restrictions on Amazon and other retailers, EU antitrust regulators said on Friday. The concessions, if accepted by the European Commission, would make Penguin the fifth book publisher to settle with regulators, ending a 16-month long investigation without any finding of wrongdoing or fine. Regulators were concerned such pricing deals could hold back development of the e-book market, with higher prices for consumers. Amazon has the biggest share of that market.
For BlackBerry Users, Still No Skype (WSJ)
Even for diehard BlackBerry fans eager to defend their favorite smartphone-maker in the months since it launched a new phone this year, one question has been nagging: “Where’s Skype?” When Research In Motion Ltd (NASDAQ:BBRY) unveiled two smartphones in January, one of the few surprises at the launch event was that Skype would be available on the phones. Analysts took this as a sign that RIM’s outreach efforts to developers and big-name third party companies was gaining traction. But nearly three months later, Skype is still unavailable for the new BlackBerry Z10. Since the launch event, RIM has said Skype will be available “in the coming weeks.”
Research In Motion Ltd (NASDAQ:BBRY) to Launch new devices with BB 10 OS (PRCarbon)
It’s been speculated that the Canadian smartphone maker Research In Motion Ltd (NASDAQ:BBRY) is working to launch two or three additional BlackBerry 10 models before the end of the year. Moreover, the enthusiasts could see a mid range version of the Z10 and the Q10, in addition to A 5 inch Z10 like device. It’s obvious that the QWERTY and touchscreen phones are familiar market for BlackBerry. However a 5 inch smartphone or a tablet would be completely new ground for the phone maker. A big screen BlackBerry device would be up against some strongly established and serious competition. The new device is being named as phablet that could launch at the end of the year. Thorsten Heins, the chief executive officer of BlackBerry is zealous to take the new BlackBerry 10 operating system to new peaks. In a recent press interview Heins talked about a forthcoming addition to the smartphone range.
Research In Motion Ltd (NASDAQ:BBRY) 10 update introduces whole host of new features (USMarketBuzz)
Research In Motion Ltd (NASDAQ:BBRY) has added a whole lot of new features to its new operating system, Blackberry 10. Its new update which will be sent out to developers this week has some additions such as a higher-quality HDR option for photo takers, PIN-to-PIN messaging available within the BlackBerry Hub, and an improved text picker. …The new features have been listed out by blog site Crackberry. Users will be able to turn off alerts for specific apps, use the power button to unlock the screen at the lock screen, and paste phone numbers directly into the dialpad. New help demos and walkthroughs will also be available to help people learn about BlackBerry 10.1.
Research In Motion Ltd (NASDAQ:BBRY) Z10 grows, iPad share jumps to 82% (USMarketBuzz)
Ad network Chitika has focused on adoption of the new Research In Motion Ltd (NASDAQ:BBRY) Z10 phone and the present state of tablets in North America through the two reports published over the last two days. The new competitor to Android and iOS is getting 5.3 percent of the overall BlackBerry traffic, reflecting doubling in usage since the release of the new phone in US just 20 days back. This is great but these figures need to analysed. The network has informed that BlackBerry-based Web traffic constitutes about 1 percent of total mobile Web traffic on its network. Also, since the demand for phone is growing, this is a little slice of the insignificant share.
Vodacom Revealed Research In Motion Ltd (NASDAQ:BBRY) Q10 South Africa Launch Date (CrazyJoys)
It’s been reported that Vodacom has revealed the date of launch for Research In Motion Ltd (NASDAQ:BBRY)’s Q10. According to Vodacom, the BlackBerry Q10 will be available on the Vodacom network in early May 2013, said by a spokesperson of Vodacom recently. Network carrier firm further said that the exact pricing information and launch date will be announced soon. At the end of January 2013, BlackBerry had officially unveiled its first two new devices to run on the new BlackBerry 10 mobile operating system (OS) that come up with the touchscreen-only. BlackBerry Z10 launched in South Africa during February 2013.
Google stock forecast to breach $900 as core business lends stability (NDTV)
Google Inc (NASDAQ:GOOG)‘s share price should resume its upward march to about $900 from less than $800 now, analysts said on Friday, after the search giant’s strong quarterly profit reinforced its status as a technology sector favorite. At least five analysts increased their 12-month price target on the stock, by between $50 and $130 to $820-$925. Three others, who already had targets above $935, trimmed theirs. Some analysts said the predictability of Google’s results over the last several quarters was allowing them to better model earnings and stock price trends.
Now that’s a steal! Google to buy $39 million network for one dollar (NDTV)
Terms of an agreement between Google Inc (NASDAQ:GOOG) and Provo, Utah, show the company will pay $1 for a fiber-optic system that cost $39 million to build. Even as Google takes ownership of the municipal network, Provo will have to pay off loans for its construction for another dozen years. Provo officials say it’s a good deal because the system hasn’t been able to pay for itself. They say Google will make upgrades and complete connections to every home. And Google Fiber will offer basic Internet service at no charge for a $30 hookup fee far less than the current $700 activation fee.
Google again beats Viacom in YouTube copyright case (NDTV)
A federal judge has thrown out Viacom, Inc. (NASDAQ:VIAB)‘s lawsuit accusing Google Inc (NASDAQ:GOOG) of posting its programs on YouTube without permission, a year after a federal appeals court had revived the landmark copyright infringement case. For the second time in three years, US District Judge Louis Stanton in Manhattan rejected Viacom’s damages claims over Google’s alleged unauthorized posting of clips from “The Daily Show with Jon Stewart,” “South Park,” “SpongeBob SquarePants” and other programs that viewers had uploaded to YouTube.
Tech’s Rust Belt Takes Shape (WSJ)
Technology has long distributed its riches unequally. But the sector has seldom seemed so sharply divided between disrupters and the disrupted. Computing pioneer International Business Machines Corp. (NYSE:IBM) -7.05% on Thursday reported its revenue dropped 5% after failing to close big software and hardware deals. …Software giant Microsoft Corporation (NASDAQ:MSFT) +3.54% once known for rapid sales of PC software, reported that the business that includes its Windows operating system turned in essentially zero growth after one-time effects of software revenue deferrals. By contrast, Internet innovator Google Inc (NASDAQ:GOOG) +2.78% said Thursday revenue grew 31% in the first quarter, while profit rose 16%.
Google Mail and Other Services ‘Disrupted’ (ABCNews)
Google’s mail and application services were unavailable to some users Wednesday morning. The company said it was investigating the problems, but didn’t know their cause. It didn’t say how many people were affected. The disruptions started affecting people worldwide around 8 a.m. Eastern time but appeared to be resolved by midday. Earlier, Google Inc (NASDAQ:GOOG)’s apps status dashboard showed that its Mail, Drive file storage service and office-application services were “disrupted.” Its administrator control panel, which lets companies manage their Google applications, was completely down.
Google earnings up as mobile ads gain traction (BostonGlobe)
Google’s latest quarterly results provided further proof that the Internet search leader is figuring out how to make more money as Web surfers migrate from personal computers to mobile devices. The first-quarter numbers released Thursday show that a recent decline in Google’s average ad prices is easing. The trend indicates that marketers are starting to pay more for the ads that Google distributes to smartphones and tablet computers. Mobile ads so far have fetched less money than those viewed on the larger screens of laptop and desktop computers. But a growing number of people are clicking on mobile ads as they increasingly connect to Internet services on smartphones and tablets, driving down the average price paid for a marketing link. Google’s average price, or the ‘‘cost per click’’ to advertisers, has fallen from the previous year in six consecutive quarters, including the opening three months of the year.
Microsoft software licenses growth cushions pain of PC sales decline (EconomicTimes)
Microsoft Corporation (NASDAQ:MSFT)’s strategy of selling more long-term software licenses to big business customers is helping to cushion the blow from plummeting PC demand and a faltering start for its Windows 8 system. Personal computer sales fell 14 per cent in the first three months of the year, just as Microsoft tries to ramp up sales of the latest iteration of Windows. But the company’s ability to keep hold of big customers rescued its third-quarter results, which came in better than expected on Thursday.
Microsoft CFO exits, profit rises (MoneyControl)
Microsoft Corporation (NASDAQ:MSFT) said on Thursday chief financial officer Peter Klein was leaving the company, as it struggles with sharply declining personal computer sales and a lukewarm reception for its new Windows 8 operating system. The world’s largest software company reported a profit of $6 billion, or 72 cents per share, in the fiscal third quarter, up fromUSD $5.1 billion, or 60 cents per share, in the year-ago quarter. Profit was boosted by some deferred revenue from its Windows, Office and video game operations, but cut severely by a big fine by European antitrust regulators for breaking promises relating to expanding the choice of Internet browsers on Windows.
Microsoft revenues up 18%; launch of ‘mini’ Surface tablets confirmed (FirstPost)
Microsoft is working with manufacturers to produce a line of small touch-screen devices powered by Windows, apparently intended to compete with tablets like the iPad Mini and Amazon Kindle Fire. Peter Klein, Microsoft’s chief financial officer, told investors and analysts on a conference call Thursday that the new devices will be available in coming months at competitive prices. Microsoft Corporation (NASDAQ:MSFT) is struggling to extend its software into smartphones and tablets as consumers are turning away from PCs, the foundation of its empire. Over the winter, it launched two larger tablets under the Surface brand. And in October, the company took a large stake in Barnes & Noble’s digital unit, which sells a line of entertainment-oriented tablets under the Nook brand.
Foxconn to pay license fee to Microsoft on Android, Chrome devices (FirstPost)
Microsoft Corporation (NASDAQ:MSFT) and Hon Hai Precision Industry Co Ltd also known as Foxconn, signed a global patent licensing agreement on Wednesday which will benefit Microsoft greatly. According to Ars Technica, Starting now Microsoft will be getting paid a toll from Foxconn when it produces Android or Chrome devices. This is significant as the company produces 40 percent of the world’s consumer devices. Foxconn is an Original Device Manufacturer, ODM, and according to the report on Ars post the deal, many Android devices will now be handled by two levels of companies, both of which have deals to license Microsoft patents.
Glimmers of Hope for Nokia (WSJ)
Nokia Corporation (NYSE:NOK)‘s quarterly results over the last few years have made for grim reading. The results for the first quarter of 2013 were potentially going to be another horror story. The company had already laid the groundwork, warning in its last report that this one would be bad. It was, but as it turned out, it wasn’t as bad as it could have been. Let’s look at the two highlights. Firstly, and most importantly, the performance of the flagship Lumia range, built on Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone operating system. The Lumia is Nokia’s stake in the future. Even in the historically difficult first quarter (it comes after the holiday season) the company managed to ramp up sales by 27% to 5.6 million units. Pete Cunningham, principal analyst for Canalys, said this was a very major achievement and shouldn’t be under-played. “They are very bullish about the next quarter as well, saying they are going to sell seven million units.”
Two Years On, And Nokia’s Platform is Still Burning (WSJ)
No matter how tough the competition from iPhones, BlackBerries and Androids, the ever-shrinking phone business of Nokia always seemed to have on thing in its favor: nobody else knew the low end of the market like it did. There were cheaper products on the market, to be sure. But Nokia always had the edge on quality, and the giant manufacturing scale to push prices down. In emerging markets where customers wanted something good for less than $100, Nokia stayed number 1 long after pricier touchscreens had taken over among bigger-spending customers.
Nokia Promises New Lumia Flagship As Sales of Smartphones Collapse. (XbitLabs)
Nokia Corporation (NYSE:NOK) on Thursday disclosed sales results for the first quarter of 2013. As expected, shipments of its Windows Phone-based Lumia smartphones increased modestly during the quarter, but the total sales of smartphones dropped to a new low. In a bid to improve sales of smartphones in the coming quarters, chief exec of the company promised to introduce a new flagship already this quarter. Nokia Lumia Q1 volumes increased 27% quarter-on-quarter to 5.6 million units, reflecting increasing momentum. At the same time, sales of Symbian-based smartphones collapsed to 500 thousand a quarter, which indicates that the platform is nearly dear. Sales of smartphones in Q1 decreased to 6.1 million units, down from 10.2 million units a year ago and 6.6 million units a quarter ago. Thanks to the shift to Windows Phone platform, average selling price of a Nokia smartphone increased to $191 from $143 a year ago quarter and from $183 in Q4 2012.
Nokia Lumia Shipments Rise to Record Levels, Company Posts $196 million Loss (BrightSideOfNews)
Nokia Corporation (NYSE:NOK) posted their Q1 2013 results, and there are no major surprises: they reported a $196 million operating loss with $7.65 billion in revenue (missing analyst expectations of $8.65 billion). This loss was predicted by the company, ever since they briefly turned to profitability in the Q4 2012. Devices & Services net sales decreased 25% quarter-on-quarter and mobile phone volumes decreased 30% in the same period, “reflecting competitive industry dynamics and an estimated higher than normal seasonal decline in the market addressable by Mobile Phones.” Impact this minor loss had was somewhat dwindled by the Nokia Siemens Networks, which again turned last year’s $1.31 billion loss into $3.92 million profit. To further remove the possible doom and gloom layer, it is enough to compare this result with Q1 2012, when Nokia posted an operating loss of approx.
