Acer has posted their first loss in the history of the company, and has also said it will be impossible to break even for the full year. Acer has been a force to be reckoned with in the low-cost notebook market, but the iPad has cut into PC sales more than expected and has hurt their profits, bad. Acer has since refocused on mobile devices to drive growth a first half that saw the departure of its chief executive following a row over the company's strategy and a series of cuts to its shipment forecasts.
Acer shares were down 2.92-percent on Wednesday, ahead of the earnings announcement. Chairman J. T. Wang told an investor conference that the second-quarter was a "correction period" and the losses were more than expected as Acer cleared up excessive inventory and made severance payments for senior management resignations. Wang said "Today I have to say, trying to break even this year becomes impossible."
Yesterday's rumor of Samsung purchasing HP's PC division got people excited, it would be one of the only companies capable of destroying the juggernaut that is Apple, but Samsung have today confirmed that they are not acquiring HP's PC division. Samsung have come out and said it has "no intention of taking over [HP's] personal computer business." It's also worth noting that HP hasn't confirmed plans to exit the PC market just yet. Invetec, another electronics maker, believes that HP is simply extending a feeler and will respond accordingly.
Will the loss of Steve Jobs from Apple be the energy shot that HP needs?
We all know how HP went down in flames last week when they announced they were looking to spin off its PC products division, which sell all HP-branded PC products. Of course, rumors flew thick about who would acquire it and now the rumor that is sticking is that Samsung could be interested in acquiring HP's PC business. Included in this juicy rumor is that Samsung is reported to have contacted Quanta Computer, Compal Electronics and Pegatron Technology, major Taiwan-based OEMs of notebooks, to evaluate the possibility of outsourcing notebook orders.
Samsung have, until now, manufactured their notebooks through OEMs in mainland China and had previously tried to have some manufactured in Taiwan but lucked out. So for Samsung to contact those Taiwan-based manufacturers again, it's fuelling speculation that Samsung is looking to explode into the PC business in a rather large way. If Samsung were to take over HP's PC shipment volume, we're talking about 40 million PCs shipped per year - this is not a small number by any means.
Question: 5 years ago, would you have predicted this? That the juggernauts of the industry to fight like this would be Apple and Samsung? Wow.
Word is now circulating that Dominant VOIP provider, Skype has just agreed to an acquisition of New York based start-up "GroupMe", which has been operating for about a year now.
With GroupMe's recognition primarily stemming from free mobile applications that enable quick and easy group conversations, the acquisition makes sense in that it helps Skype make a firm step toward the increasingly growing business of offering group messaging services via smartphones.
Once the acquisition has been completed, it is said that GroupMe will continue to operate from its New York base (for the time being), working on standalone applications.
Tony Bates, Skype's Chief Executive Officer said :-
Skype and GroupMe have a shared vision of creating applications and experiences that are the daily communications choice for a billion people. We will continue to seek the top talent and technology to make that vision a reality. The GroupMe team has created an incredibly sticky group messaging experience that works across mobile devices and platforms, making this a perfect addition to the voice, video and text products in the Skype family.
In a surprising move today, HP has overtaken headlines of tech sites with news that they are exiting the PC business and throwing WebOS the final nail to complete their death. HP has announced that its board of directors has authorized the evaluation of strategic alternatives for its Personal Systems Group (PSG), including the exploration of the separation of its PC business into a separate company through a spin-off or other transaction.
Is this news a result of the Google-Motorola combination? The continuing dominance of the fruit-logo smashing of Apple? The decline in PC sales? Are HP going to just sell printers from now on? What happened to buying Palm for over $1 billion and now they're just throwing it away? Wow is an understatement. For the full press release, check this out.
Dedicated Android partner, Motorola Mobility, have been acquired by Google today in an announcement that was music to my ears. Google Inc. and Motorola Mobility Holdings, Inc have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011.
Google CEO, Larry Page has a few things to say about the acquisition:
Motorola Mobility's total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.
It was back in early June that Steve Jobs revealed what his plans were for the large piece of land Apple purchased from Hewlett Packard, located in its home district of Cupertino. At that point we were just given a brief rundown on what was on the cards; a large campus designed like none other, resembling a large, spaceship/UFO like object that has landed when looking from above.
Fast forward a couple months and the Cupertino City Council has just made more details available about the "Spaceship" Campus. Here are some measurements and inclusions to paint a bit of a picture on things :-
An Office, Research and Development Building comprising approximately 2.8 million square feet;
A 1,000 seat Corporate Auditorium;
A Corporate Fitness Center;
Research Facilities comprising approximately 300,000 square feet;
A Central Plant; and
NVIDIA have published their earnings for their latest fiscal quarter (ending July 31) and have done a glorious job amongst all the rubble that is the stock market right now. With a revenue of $1.017 billion and an income of $151.6 million, that gives them a gross margin for Q2 2011 of 51.7-percent. Compared to last year in the same time where they saw a $141 million net loss.
NVIDIA CEO, Jen-Hsun Huang says that the revenue growth is from "consumer demand for notebooks powered by our GeForce GPU, with its unique Optimus technology" - surprisingly, not the Tegra 2 processors that seem to be powering virtually every iPad competitor. NVIDIA expects revenue for the ongoing quarter to be up 4 to 6-percent from the previous quarter.
Dylan Ratigan goes off, accuses Congress and the President of being corrupt, entire MSNBC studio stops and listens
This is not something that you'd find on the front page of a tech site, but while I'm employed to write news for TweakTown, I'll post in my own image. This story covers hundreds of millions of people and further more, the entire financial system of the Western World and beyond. The current financial crisis is not something that "just happened", it is something that has happened over decades and is something that is not being fixed.
It is not something that they should be surprised of and there needs to be huge, systematic changes in the entire US government, Congress, Banking, Law, and virtually everything in-between before we see a true change. Dylan Ratigan of "The Dylan Ratigan Show" really drives his point home and I found myself getting goosebumps and nearly tearing up at just how... I don't even know how to word it, how, genuine and patriotic he seemed.
Nintendo have been having a hard time with their Nintendo 3DS portable gaming console, it hasn't been selling well and is not seeing the sales they were expecting. Last week they dropped the price of the 3DS to drive more sales and the latest news on top of all of this is that Nintendo employees will also face some form of salary reduction.
It's not just employees either, Satora Iwata, Nintendo's President will be accepting the same punishment as staff with his salary being reduced from £1.2 million to £600,000 a year. Other chiefs will take a 30-percent reduction to reduce overall costs. He said:
For cuts in fixed salaries, I'm taking a fifty percent cut, other representative directors are taking a 30 percent cut, and other execs are taking a 20 percent cut.
Reports are out saying that Apple are considering the purchase of popular online video service Hulu, according to "two people who weren't authorized to speak publicly." The two sources spoke with Bloomberg, calling the negotiations "early talks that may lead to an offer for Hulu."
The acquisition of Hulu has been spinning around for days now, with a reported bidding war for the online video company. Hulu is said to be shopping itself around for potential acquirers after deciding not to go through with a $2 billion IPO. To sweeten the deal, there's a promise of five years of programming for Hulu's highest bidder, included is two years of exclusivity for the programming on Hulu, this includes programmes from Walt Disney Company, News Corp. and Comcast's NBC Universal.
Another huge tech company has posted record profits and this time it's Microsoft. Microsoft have just announced a record fourth-quarter revenue of $17.37 billion for the quarter ended June 30, 2011 and 8-percent increase from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $6.17 billion, $5.87 billion and $0.69 per share, which represents increase of 4, 30 and 35-percent respectively when compared with the prior year period.
For the fiscal year ended June 30, 2011, Microsoft reported record revenue of $69.94 billion, a 12-percent increase from last year. Operating income, net income and diluted earnings per share for the year were $27.16 billion, $23.15 billion and $2.69, which represented 13, 23 and 28-percent increases when compared to last year.
They seriously can't be doing this for the LOLs, but a 27-year-old blogger "BirdAbroad" has posted on his blog about an Apple Store he found in China. It looks liked an Apple store, the winding staircase with a sitting area upstairs, employees wearing the blue t-shirts with the clunky Apple name tag around their necks. But this Apple store in Kunming is actually a complete rip-off. As BirdAbroad says "China warps your mind into believing anything is possible". He says that it is the best rip off store they've ever seen, but some things were out of place. The stairs were poorly made, walls were not painted properly.
Even the sign itself, Apple never displays "Apple Store" on its signs, it just displays the gloriously delicious looking fruit symbol. The name tags on the staff did not actually list a name, just "staff" and an Apple logo. The funniest thing about this all is the employees actually think they're working directly for Apple. As the blogger took photos, multiple salespeople and security guys (plain clothed) outside came in and told him to stop. It was not allowed. Why wasn't it allowed? Their boss told them so. He did tell them that he was an American Apple employee visiting China checking out the local stores, this was the golden ticket.
The latest... intel is in, and it shows that Intel has had all business segments report double-digit revenue growth year-over-year. Intel had Non-GAAP results of, $13.1 billion in revenue which is up $2.3 billion, 22-percent year-over-year. Operating income saw a 6-percent year-over-year increase adding $221 million, bringing it up to $4.2 billion. Net income was $3.2 billion, up $290 million or 10-percent year-over-year.
The acquisition of McAfee Inc and Infineon Wireless Solutions (now Intel Mobile Communications) contributed revenue of $1.0 billion in their first full-quarter of results. Gross margin say at 61-percent, consistant with Intel's expectations. R&D and MG&A spending was $3.9 billion, again, within Intel's expectations. Intel's tax rate was 25-percent, below their expectations of 29-percent. Intel also used $2.0 billion to repurchase 93 million shares of common stock.
For more in-depth details of Intel's quarterly results, take a look at them here.
Looking to tighten things up for fiscal 2012, networking mob Cisco is apparently closing in on a decision to lay off up to 10,000 of its employees; about 14% of its total workforce. Cisco feels this will allow them to cut down on unnecessary expenses while boosting productivity and of course, profit$.
The need to lower its expenses comes after experiencing a notable loss in performance in several markets, also losing ground to competitors Juniper Networks and HP. Its consumer product units (Linksys) will potentially be the most affected by these layoffs.
The costs incurred in the fiscal fourth quarter with their workforce reconfiguration are said to be between $500 million and $1.1b, with up to 7000 pink slips sent out by the end of August and an additional 3000 offered early retirement packages.
Word has begun circulating today that Hon Hai Precision Industry, which is the parent company of Foxconn, has made the decision to spend up super big on helping make Apple's products more popular in China and with easier after sales support than currently.
No less than $1.6b is being used to set up 500 Apple Authorized Reseller stores throughout China via Hon Hai's major Chinese electronic chain, Cybermart International thanks to a recently obtained certification as an Apple reseller.
Given Apple's own prescence in China with regard to its Apple stores isn't all that plentiful (though that is said to improve throughout 2011 with twenty more official Apple Stores planned), these additional Cybermart Apple reseller stores should certainly help Apple in establishing itself as a far more recognized and popular entity in the country.
The first Cybermart Apple store has been marked on the map, opening in Tianjin in Northern China with a population of over 12 million people.
HTC has just announced it will acquire S3 Graphics from VIA Technologies and WTI Investment for a cool $300 million. The deal is expected to close by the end of the year and is currently waiting regulatory approval and would have HTC obtain all outstanding shares of S3 Graphics with the firm's intellectual property and associated patients. Although the patents will technically change hands, HTC will grant VIA free access to the IPs.
VIA are set to receive $147 million and WTI will take $153 million. HTC has not said what they intend to do with S3 but most people believe HTC will use the portfolio of 235 patents as legal leverage against others in the smartphone market. S3 as recently as July 1 filed a patent infringement suit against Apple and an International Trade Commission Judge ruled in S3's favor, determining that Apple infringed on two patents involving image compression and data formats.
PayPal have just announced they have more than 100 million active accounts. PayPal believe that consumers are giving up traditional payment methods in droves, systems such as cash and checks are instead using more modern methods as a form of payment. As more modern ways of payment are becoming the norm, PayPal want to deliver solutions that are better than what is on offer today.
PayPal have acted out on this and have predicted that by 2015 digital currency will be excepted everywhere in the US, from your local store right up to the big chains like Walmart. More specifically, this means PayPal thinks that in just four, short years, that you will no longer need to carry a wallet. PayPal is actually quite confident in this remark, going as far as asking five of its Bay area employees to plunge into the world of a digital lifestyle and use only digital currency to pay for all of their purchases.
And so it continues! Samsung have upped the ante on their legal dispute versus Apple over smartphone patents, filing a trade complaint that seeks to block US imports of the iPhone, iPod and iPad. Samsung claim that Apple are infringing on not just one, but five patents, according to a filing with the US International Trade Commission in Washington yesterday. The ITC has the power to halt the imports of products that are in violation of US patents.
This new case adds to the on-going four cases that Samsung have in four countries, as both Samsung and Apple are fighting for the same mobile market, with both companies using the courts to try and get a sneak peek at the competing companies product. Samsung currently have lawsuits against Apple in Seoul, Tokyo, San Francisco and Mannheim, Germany.
The patents in question are related to ways to transmit multiple services over a wireless network; the format of data packets used for high-speed data transmission; integrating Web browsing into a phone; a way to store and play digital audio; and viewing digital documents using a touch-sensitive display, according to the complaint.
If the ITC does indeed take the case, a judge would hear arguments within a year and the case would look at being completed within the next 15 - 18 months.
Steve Jobs has proposed a giant, ring-shaped office at the old HP location. I'm guessing he'll get it as I see Steve as the kinda guy who when he wants something, he gets it. Jobs approached the Cupertino City Council to sell Apple's plans to transform the old HP site. The new ring-shaped design is built to hold 12,000 employees and actually looks quite amazing.
During his presentation to the Cupertino City Council, Jobs said that Apple had pulled together "some great architects, some of the best in the world" to come up with the design that encompassed Apple. He added "there's not a single straight piece of glass in this building". Apple was able to achieve this design based on its knowledge of building Apple stores throughout the world and its particular experience in employing large pieces of glass in them.
Hours after Google unveiled their new "Google Wallet" mobile payment system, both online auction site eBay and online payment provider PayPal slapped the Search Giant, as well as former PayPal employees like Osama Bedier with a lawsuit alleging the theft of trade secrets. The court filing reportedly alleged the following on Thursday evening:
By hiring Bedier, with his trade secret knowledge of PayPal's plans and understanding of Google's weaknesses as viewed by the industry leader, Google bought the most comprehensive and sophisticated critique of its own problems available. Google put Bedier in charge of its mobile payment business, virtually ensuring that Bedier would misappropriate PayPal's trade secrets concerning planning and competitive assessments in mobile payment.
Bedier had evidently been drawn to Google at the behest of a Stephanie Telenious, a former eBay executive herself. When a former executive of a company that used to exclusively utilize a payments service from a company of which said executive lures to her current company of employment just in time to launch a service in the exact same domain- yeah, that's pretty dodgy guys, not going to lie.