Lenovo To Buy NEC’s Mobile Phone Unit
Japan’s NEC Corp is in negotiations to sell its struggling mobile phone unit to its PC venture partner Lenovo Group Ltd, a source familiar with the discussions said, confirming media reports of the negotiations.
NEC is also in talks with potential domestic buyers, the source said on condition that he wasn’t identified.
NEC has until now said its mobile business is an important part of its overall operations. But after two years of losses the company is shedding assets to bolster profitability.
“Amid the rapidly changing market we are considering a number of ways to bolster the competitiveness of our mobile phone business, but nothing has been decided,” NEC said in a statement through the Tokyo Stock Exchange on Friday in response to the media reports.
Lenovo officials could not be immediately reached for comment.
Japanese phone makers have struggled to gain traction overseas inmarkets dominated by Samsung Electronics Co Ltd and Apple Inc where they are also being challenged by upcoming Chinese makers. In Japan, the two foreign giants are whittling down their share of cell phone sales.
Last October, NEC cut its mobile phone sales target for the year ending March to 4.3 million from a previous estimate of 5 million units. Lenovo, the world’s No.2 maker of PCs, is cranking up overseas expansion in smartphones after solid growth in China.
Japan’s biggest cell phone maker, Sony Corp, is vying with China’s Huawei Technology Co and ZTE Corp to be No.3 in the global smartphone market.
NEC also plans to sell its mobile services subsidiary NEC Mobiling Ltd for as much as $850 million, separate sources told Reuters this month.
Marubeni Corp’s telecommunications unit and TD Mobile, a joint venture between Toyota Tsusho Corp and Denso Corp, are vying for the 51 percent stake, the sources said.
TSMC And Imagination Team Up
TSMC and Imagination Technologies announced the next step in their tech collaboration in an effort to develop Imagination’s next generation PowerVR 6-series GPUs.
The new GPUs are still not ready for prime time, but they should be used in future SoC designs, including those stamped out using TSMC’s 16nm FinFET process. The two companies will work to create new reference system designs, utilizing high bandwidth memory standards and TSMC’s 3D IC technology.
As GPU muscle becomes more important for next generation SoCs, designers need more advanced and more complex processes, such as TSMC’s 16FinFET.
“Through advanced projects initiated under this partnership, Imagination and TSMC are working together to showcase how SoCs will transform the future of mobile and embedded products,” said Hossein Yassaie, CEO of Imagination.
TSMC VP Cliff Hou argued that the need for high performance mobile GPUs will drive silicon processes in the future, much in the same way CPU development pushed new processes in the nineties.
AT&T Gets GM
March 5, 2013 by admin
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AT&T Monday said it will provide LTE wireless services to most General Motors automobiles starting in 2014 in the U.S. and Canada.
A multi-year agreement between AT&T and GM subsidiary OnStar calls for vehicles to continue getting OnStar’s safety and security services while adding information and entertainment services for backseat drivers, AT&T said.
Millions of vehicles will be affected, as AT&T rolls out LTE to reach 300 million people in the U.S. by the end of 2014.
The AT&T-GM announcement is part of an explosion in the number of devices connected to the Internet, many of them wirelessly, in what some have termed the “Internet of Things.”
“The is a big announcement for connected devices,” Glenn Lurie, president of emerging enterprises and partnerships at AT&T, said in an interview at Mobile World Congress here.
Apple Squashes Rumors
February 21, 2013 by admin
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Apple will not develop a new, inexpensive iPhone just for the sake of offering a cheaper alternative, Apple CEO Tim Cook said in a speech on Tuesday.
The company’s focus is on creating great products, and it will not make a smartphone that does not past the quality test, Cook said during a webcast from the Goldman Sachs Technology and Internet conference, which is being held in San Francisco.
“There are other companies that do that, that’s not who we are,” Cook said. “Our North Star is great products.”
Instead, the company is now dropping prices on the older iPhone models. That has been successful, and the demand for iPhone 4 models in December was greater than supply, Cook said.
“It surprised us as to the level of demand we have for it,” Cook said.
Lowering the price on older models is just one of the approaches Apple is taking to reach out to price-sensitive buyers. It’s not easy to balance quality and price, and that’s when innovation comes into play and new products could be created to meet consumer demand, Cook said.
“Sometimes you can take the issue … and you can solve it in different ways,” Cook said.
For example, the first iPod that shipped in 2001 was priced at $399, and now users can buy an iPod Shuffle for $49. There was also a big demand in the past to drop the price of Macs to under $500, and Apple tried and couldn’t do it, so it created the iPad tablet.
Blackberry Makes A Comeback
February 5, 2013 by admin
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Research In Motion has hinted that it will unveil two new handsets early next month to accompany the release of its BlackBerry 10 operating system.
RIM is expected to unveil the phones at an event in New York City on Wednesday and will begin promoting BlackBerry 10 to consumers the following Sunday, Feb. 3, when it will air a TV commercial during the Super Bowl.
The sporting event attracts one of the largest TV audiences of the year in America, and companies pay millions of dollars for a 30-second advertising spot, underscoring how important it is for RIM that its new BlackBerry platform will be a hit. The same commercial will also air in Canada, RIM’s home country.
In announcing its publicity plans Friday, RIM also hinted at when the phones will be available to consumers. It said the TV spot “kicks off a week of worldwide launch activity for RIM’s BlackBerry 10 platform, along with the first two devices to run on the new platform.”
If the commercial marks the start of a weeklong buildup to the launch, that would put the North American release of the phones at roughly the start of the second week in February.
Is Apple Hiding Billions?
February 4, 2013 by admin
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According to Apple’s Q4 corporate filings, the company channeled $11 billion into tax havens in a single quarter. The Sunday Times claims the company is sheltering a total of $94 billion in tax havens. However, Apple’s activities are completely legal and the IRS can’t do anything about it.
But Apple’s tax avoidance strategy is not limited to the US. The company is avoided an estimated £550 million in tax in Britain back in 2011. A different analysis suggests a £550 million tax bill. Let’s not forget Kate Middleton is about to have a baby, and babies tend to cost money, so shame on you Apple.
American politicians, from both sides of the political spectrum, like to have their photos taken next to anything Apple. The company is often viewed as an American success story, as it managed to reinvent itself and come back from the brink to become the world’s second most valuable company.
TSMC 20nm Processors In High Demand
TSMC believes demand for next-generation 20nm chips will be even higher than demand for current 28nm products.
Speaking in a conference call, TSMC CEO Morris Chang said the volume of 20nm SoCs built next year will be greater than 28nm volume in 2012 and by 2015 it should be greater than 28nm volume in 2013.
TSMC hopes to start 20nm production in the latter part of the year. The company is constructing two new facilities at Fab 15 and it hopes to start 20nm production in both simultaneously. We could be in for a quick ramp.
TSMC will offer only one version of the 20nm process, compared to four versions of the 28nm process. This should also allow it to ramp up volume production faster, reckons Xbit Labs.
Energy Star Goes To Tablets
January 24, 2013 by admin
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Coming to a tablet near you soon, Energy Star ratings.
The specification will be part of the Energy Star version 6.1, according to documents posted on the U.S. Energy Star website. But a date for ratings on tablets has not yet been established, said Robert Meyers, product manager at Energy Star computers. Energy Star is a joint effort between the U.S. Environmental Protection Agency and the U.S. Department of Energy.
The Energy Star specification helps shoppers identify the most power-efficient products when making purchases. The Energy Star program already covers laptops, desktops, monitors, light bulbs, servers, household appliances and other products that are identified with a label. The use of Energy Star-labeled products helped cut close to US$18 billion from U.S. utility bills in 2010, according to the organization.
The EPA and DOE originally floated the idea of including tablets as part of Energy Star version 6.0 for products like laptops, desktops, displays, thin clients and networking equipment, which goes into effect on June 1. Some IT vendors that participate in the Energy Star program argued against the immediate inclusion of tablets, saying that those devices are more like smartphones than PCs and have different assembly and equipment. They argued that tablets and laptops differ on components such as batteries and networking equipment, and thus cannot be grouped together with PCs. The EPA and those stakeholders are now trying to gather a consensus on the definition of tablets and how to rate the devices.
AP Goes With Twitter
January 14, 2013 by admin
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The Associated Press began using its official Twitter account as an advertising platform on Monday, as the news organization looks for new ways to generate revenue.
Samsung Electronics Co Ltd was the first sponsor on the @ap account for breaking news, which is followed by 1.5 million Twitter users. The South Korean electronics maker’s initial “SPONSORED TWEET” promoted its events at the 2013 Consumer Electronics Show in Las Vegas this week.
AP did not disclose financial details of the arrangement.
Twitter, which sells ads directly to make money from the social media’s monthly base of 200 million users, will not receive any proceeds from the AP-Samsung deal.
The AP called the initiative part of a new business strategy and stressed that sponsored tweets will clearly be labeled to differentiate them from news tweets.
The ads provide AP a new income source as news organizations from newspapers to television face severe revenue declines in the face of high production costs.
While the AP was founded in 1846 by U.S. newspapers as a breaking news conduit, only 22 percent of its revenue comes from member fees. Photo licensing, advertising on its news application AP Mobile and YouTube channel are other revenue streams.
Was The Prize Stock For 2012?
If you wanted to know the IT company which was a rotten investment this year, you might be thinking Facebook, HP or RIM.
However according to Business Insider is starting to look like the so-called industry leader, Apple might have caused its investors the biggest headaches. More money has been lost in the past three months in Apple stock than has ever been lost in the tech disasters known as Hewlett-Packard and Research In Motion combined.
HP’s stock price peaked above $50 a few years ago, and now it’s trading at $14 and RIM peaked above $140 a few years ago, and it’s trading for $11. However Jobs Mob’s share price peaked above $700 three months ago and is now trading just above $500. This means that on a percentage basis, therefore, Apple’s stock is down much less than either Hewlett-Packard RIM but has cost shareholders a lot more money.
When HP investors have lost about $100 billion since the 2000 peak and RIM has lost $65 billion since the 2000 peak. Apple has cost its shareholders value in three months. What is more amusing is that about four months ago, I was lectured by an Apple fanboy who told me that the company is going to be worth a trillion dollars by the end of the year and he just invested more than $100,000 in the company. Looks like he would have been better off putting it on a horse.