There could be a memory shortage for PC vendors brewing, after aggressive short-term orders coming in from smartphone vendors.
According to Digitimes, smartphone vendors have been aggressively placing short-term orders for the fourth quarter and suppliers have been delaying their shipments to PC vendors. This could impact these PC vendors’ fourth quarter shipments
The probably was caused by Samsung’s recall of its Galaxy Note 7. The outfit jacked up orders for the Galaxy S7 and S7 Edge, hoping to minimize the impact on its bottom line. Meanwhile Apple did the same thing in the mistaken believe that people who had spent money on a Note 7 might suddenly want to downgrade to an iPhone 7.
Memory component suppliers swapped their capacity for PC memory to produce memory for smartphones. This put a spanner in delivery schedules from 10 weeks to more than 20 weeks. Since memory components require a series of certifications and testing, the suppliers can’t shorten the delay.
The memory component makers normally have a month of inventory on hand to cope for extra-ordinary cases like this, but it looks like these will be depleted after November.
LG Chem Ltd, the world’s largest automotive battery manufacturer, will debut in the fledgling U.S. market for home energy storage through a partnership with rooftop solar company Sunrun Inc, the companies said on Wednesday.
The move will put LG in direct competition with electric car maker Tesla Motors Inc, which unveiled its own home battery packs, called Powerwalls, last year. Sunrun has been using Tesla batteries in its home storage systems in Hawaii since earlier this year, and this deal will add LG to its list of suppliers.
Financial terms were not disclosed. The agreement is not exclusive to either party, Sunrun said.
“Tesla makes all the headlines, but LG manufactures most of the lithium ion batteries,” Sunrun Executive Chairman Ed Fenster said in an interview. LG’s entry into the market will help bring down battery prices and help them make economic sense for more households, he added.
The deal comes as Tesla is planning to buy Sunrun’s bigger rival, SolarCity Corp, as part of its bid to sell a fossil fuel-free lifestyle in which people can have solar panels on their roofs generating electricity to power their homes, charge home battery packs and recharge their electric car batteries.
Home battery systems allow customers to store solar power generated during the day for use after sunset. Eventually, as utilities move to charging higher rates for power used in the evening, when demand is greatest, the batteries could bring customers significant savings. Battery packs can also serve as a backup power source in case of an outage.
Sunrun currently offers batteries with its solar installations only in Hawaii, where sky-high power prices make such systems economically attractive. The batteries have enabled many residents there to supply all their own electricity needs without relying on the grid.
Most of Sunrun’s battery systems are deployed through leases or power purchase agreements, which allow consumers to use the technology by paying a monthly fee and avoiding a large upfront cost.
In addition to Sunrun customers, LG Chem’s batteries will be available to the entire solar industry through AEE Solar, Sunrun’s solar products distribution arm.
Work on Google Fiber is to continue in the cities where it has been launched or is under construction, wrote Craig Barratt, senior vice president at Alphabet and CEO of its Access unit, of which Google Fiber is a part. In the “potential Fiber cities” where Google Fiber was still at the stage of exploratory discussions, the project will pause operations.
“In this handful of cities that are still in an exploratory stage, and in certain related areas of our supporting operations, we’ll be reducing our employee base,” wrote Barratt, who under the new dispensation moves to the position of adviser to the venture. A new CEO has not been named.
Google Fiber set about five years ago laying fiber optic cabling to provide high-speed Internet access to a number of cities starting in Kansas City. The project claims its subscriber base and revenue are growing quickly, and it expects that growth to continue. But the company has also run into competition from other broadband players like AT&T and hassles of negotiating local bureaucracy.
In July, the Federal Communications Commission also adopted rules to open up 11GHz of high-frequency airwaves for 5G wireless broadband, throwing up opportunities for players like AT&T and Verizon to use wireless to deliver high-bandwidth data services using the spectrum.
Google Fiber had already seen opportunities for making the Internet available to consumers through wireless technologies. It said in June that it was acquiring Internet service provider Webpass to be able to increase its urban coverage quickly and offer customers a combination of fiber and wireless delivery of high-speed Internet. Most of the acquisition, except for a smaller affiliate Webpass Telecommunications, was completed this month.
In April, Google Fiber obtained approval to test Internet delivery on 3.5GHz spectrum in parts of Kansas City that could result in fast, short-range wireless connections to serve areas not reached by Google Fiber.
“Now, just as any competitive business must, we have to continue not only to grow, but also stay ahead of the curve — pushing the boundaries of technology, business, and policy — to remain a leader in delivering superfast Internet,” Barratt wrote.
A research analyst has forecast that the market in health related wearables will revolutionize the lives of people suffering from diabetes.
ABI Research said it estimates that by 2021, over nine million continuous glucose monitor (CGM) wearables will ship worldwide.
There are already half a billion people on the planet that suffer from diabetes, and wearable CGMs may really help people cope with the condition.
Ryan Harbison, a research analyst at ABI Research, said: “Wearable device manufacturers have integrated the new, non invasive CHMs and insulin pumps with cloud services, analytic tools, and predictive software to provide new types of pattern analysis in near real time.”
The diabetic testing market will be worth $17 billion in 2021, a rise from $12 billion this year. And Harbison predicts that CGM revenues will grow at a compound annual growth rate (CAGR) of 41 percent over the same period.
New players will challenge giants like Bayer and Johnson & Johnson, he added.
“Medtronic has a substantial advantage with its MiniMed CGM system, Abbott focuses on the European market, and Dexcom innovates on existing CGM devices to create all-in-one experiences through mobile integrations.Glucose meter manufacturers, such as Johnson & Johnson and Roche Diagnostics, can further disrupt this market by developing new form factors, such as contact lenses and skin patches, to create less invasive and more accurate monitoring devices.”
The company announced on Thursday that its quarterly revenue for the three-month period ending in September was flat overall at $20.5 billion. The company’s net profit was down 4 percent year-over-year from $4.9 billion to $4.7 billion.
Those results were driven by quarterly revenue from the company’s Intelligent Cloud segment, which includes Azure and Windows Server, and its Productivity and Business Processes segment, which includes Office 365 and Dynamics. Intelligent Cloud revenue grew 8 percent year-over-year to $6.4 billion, while Productivity and Business Processes segment revenue grew 6 percent to $6.7 billion.
It’s another positive sign for the cloud-focused strategy that the company adopted under the leadership of CEO Satya Nadella.
Azure revenue grew by 116 percent year over year, and Microsoft revealed for the first time that its profit margin from its cloud platform is 49 percent. The company continues to keep the exact revenue and profit numbers from its public cloud platform under wraps, however.
Office 365 commercial revenue grew 51 percent year-over-year. Microsoft reported it now has more than 85 million commercial monthly active users of its cloud-based productivity suite as a service offering.
Surface sales were another bright spot for Microsoft. The company’s line of tablets and laptops brought in $926 million over the past quarter, compared to $672 million during the same period in 2015. Phone revenue continued to drag the company down for another quarter, however — revenue from that division dropped by 72 percent year-over-year.
Microsoft’s non-GAAP results of $22.3 billion in revenue and earnings of $0.76 a share blew past analyst expectations for the quarter. The consensus of analysts polled by Thomson Reuters was an expected $21.7 billion in revenue and earnings of $0.68 a share. Investors rejoiced at the news, sending the company’s stock to an all-time high above $60 per share, beating a previous high set in 1999.
Tesla Motors Inc has plans to introduce a ride share services program and will announce details next year, the luxury electric vehicle maker said on its website, a service first outlined by Chief Executive Elon Musk in his master plan in July.
News of the Tesla Network was in a disclaimer about the self-driving functionality on new Model S vehicles. Musk said last week Tesla is building new vehicles with the necessary hardware to eventually enable full autonomy, although the software is not yet ready.
“Please note that using a self-driving Tesla for car sharing and ride hailing for friends and family is fine, but doing so for revenue purposes will only be permissible on the Tesla Network, details of which will be released next year,” read the disclaimer.
Tesla did not immediately respond to a request for more detail.
Car makers have rushed to invest in so-called mobility services, hoping to capture the potential trillions of dollars in revenue from selling both vehicles and such on-demand services, while carving out a stake in the industry dominated by Uber.
Barclays analyst Brian Johnson wrote in a note to investors on Thursday that although a Tesla Network could “excite the market” over its potential earnings stream, it was a costly proposition.
“While we think ride-sharing/hailing is the future of mass-market mobility, we have some financial concerns with the idea of an OEM-owned fleet,” Johnson wrote.
Venture capitalists and corporate investors had poured nearly $28 billion into the ride services sector in the past decade as of June, according to a Reuters analysis.
General Motors has made the biggest bet, investing $500 million in Lyft in January. GM’s upcoming electric Chevrolet Bolt was designed expressly with car sharing in mind, executives have told Reuters.
Money-losing Tesla lacks the deep pockets of GM, and ride services companies like Uber and Lyft burn billions of dollars in price wars to secure regional dominance, as occurred with Uber in China before it ceded to local rival Didi Chuxing.
In his “Master Plan, Part Deux” in July, Musk outlined a system in which a Tesla owner could add a car to a shared Tesla fleet using a phone app, allowing it to “generate income for you” and lower the cost of ownership.
Musk said that in cities where car ownership is lower, Tesla would operate its own fleet.
Netflix Inc added over 50 percent more subscribers than expected in the third quarter as original shows such as “Stranger Things” attracted new international viewers and kept U.S. customers despite a price hike.
The company’s performance represented a turnaround from the previous quarter of disappointing subscription growth. Netflix, which has spent heavily to expand outside its home market, also said that it was on track to start harvesting “material global profits” next year, even as it raised spending on original programming.
Netflix added about 3.20 million subscribers internationally in the third quarter, higher than the 2.01 million average analyst estimate.
In the United States, Netflix added 370,000 subscriptions, compared with analysts’ estimate of 309,000, according to research firm FactSet StreetAccount.
“Investors appear laser focused on subscriber growth, and so long as Netflix delivers on that metric, investors will bid its shares up,” said Wedbush Securities analyst Michael Pachter. However, Pachter said he thought the continuing cost of developing new shows would undermine plans to deliver material profits in 2017.
Netflix has expanded into more than 130 markets worldwide, including most major countries, except China. It said on Monday it was dropping plans to launch a service in China in the near term, opting instead to license its shows for “modest” revenue.
The company said it still hopes to launch service in China “eventually.”
In the meantime, Netflix plans to keep pouring money into building its stable of original and licensed TV shows and movies. Content spending will rise to $6 billion next year, a $1 billion increase from 2016, the company said.”We will keep investing in growing the content spend, even domestically, for quite a long time,” Chief Executive Reed Hastings said on webcast.
Netflix has been facing a slowdown in subscription growth in the United States as the market matures and a planned U.S. price hike raised concerns it would not hit its targets. It also faces competition from the likes of Hulu and Amazon.com Inc.
But the company, whose other popular original shows include “Orange is the New Black” and “House of Cards”, said it expects to add 1.45 million subscribers in the United States in the current quarter.
Analysts on average were expecting 1.27 million additions, according to research firm FactSet StreetAccount.
The fourth-quarter impact on Samsung Electronics’ operating profit will be “in the mid-2 trillion won range,” the company said in a press release early Friday. Using the midpoint of 2.5 trillion South Korean won, that would be about $2.2 billion. The damage will continue in the first quarter of next year, with an impact of about 1 trillion won, Samsung said.
The company announced Tuesday it had permanently stopped production of the Note7. It had launched a recall of the phone just weeks after it went on sale because of fires and explosions that destroyed some of the devices. Then, some replacement units it sent out as part of the recall had the same problem.
Also on Friday, the company said it would make significant changes in its quality assurance processes to enhance product safety for consumers.
Samsung didn’t forecast how the Note7 incident would affect sales in the coming quarters, but said it will “normalize” its mobile business by expanding sales of other high-end phones, such as the Galaxy S7 and Galaxy S7 edge.
On Wednesday, the company estimated the Note7 problem would cut about 2.6 trillion won out of a third-quarter operating profit of 7.8 trillion won. It also expects to report revenue of about 47 trillion won, down from the 49 trillion won it had forecast earlier.
The Tame Apple Press has been claiming that almost all the Galaxy Note 7 customers would defect to Apple’s iPhone 7, but a new survey suggests that less than 12 percent of them are thinking like this, and that number is shrinking by the day.
Branding Brand conducted a second survey of 1,000 Samsung smartphone owners from October 11-12 to compare consumer confidence to its earlier study, conducted on September 23.
It seems that only 40 percent of Note7 users have had enough of Samsung and want to go somewhere else. Given what has happened, this is a rather small figure and of that 40 percent, less than a third are moving to something Applish. This figure is down from an earlier survey which was conducted after the first recall.
As expected most Samsung users will go with another Android phone (up to 62 percent from 57 percent) and eight percent thought they would buy a Google Pixel. Given that is not really out yet we are not even sure why this option was in the survey. The Pixel is another Android device that means that Apple is going to get only 12 percent of the total Samsung users. More than 88 per cent of Note 7 users will either stay wilt Samsung or Android.
Chris Mason, co-founder and CEO of Branding Brand said:
“As we’ve watched the Galaxy Note7 recall and discontinuation play out, even more people say they will switch their smartphone brand. Consumers want to be confident in their personal safety and will choose a new smartphone accordingly. Only a week after Google’s smartphone launch, many already have their sights set on the Pixel.”
The PC and printer firm, which was created about a year ago after Hewlett-Packard was split into two companies, said in a filing to the Securities and Exchange Commission on Thursday that it expects about “3,000 to 4,000 employees to exit between fiscal 2017 and fiscal 2019.”
The company’s “printing business is challenged right now but the PC business is hitting on all cylinders,” said Patrick Moorhead, president and principal analyst of Moor Insights & Strategy. “The PC Group is gaining market share, increasing profits and innovating more than I have seen in years,” he added.
The workforce changes will “vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate,” HP said in the filing.
The company said earlier that it would be cutting 3,000 jobs during the company’s 2016 fiscal year ending Oct. 31. It had nearly 50,000 employees as of Nov. 1, according to its website.
The new job cuts are expected to cost HP $200 million in labor costs related to the workforce reduction, out of $350 million to $500 million in total restructuring and other charges. The entire restructuring plan, approved by the HP board earlier this week, has been forecast by the company to generate gross annual run rate savings of about $200 million to $300 million starting in fiscal 2020.
Although its core markets are challenged and the macroeconomic conditions are in flux, the company continues to “see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitization of graphics and manufacturing through our leading 3D printing solutions,” company president and CEO Dion Weisler said in a statement.
Samsung Electronics has begun offering financial incentives for U.S. and South Korea customers who turn in their Note 7s for other products or refund them, as the tech giant scrambles to shore up its reputation in the wake of a damaging safety crisis.
The consumer electronics company is also expanding a U.S. recall of the fire-prone model to a total 1.9 million Note 7 phones, which includes the 1 million Galaxy Note 7s it recalled on Sept. 15.
The South Korean giant is in damage-control mode as rivals like Apple Inc and LG Electronics try to steal market share from the global smartphone leader after it was forced to scrap its latest high-end device.
Samsung is boosting its marketing and promotional efforts around other Galaxy-series smartphones to cushion the blow from the demise of the premium Note 7, which it finally abandoned this week after failing to resolve overheating problems which caused some of the phones to ignite.
Samsung said on Thursday it is offering up to $100 in bill credit to consumers who exchange their Note 7s for any Samsung smartphone in the U.S.
U.S. customers who exchange their Note 7s for a refund or other branded smartphone will receive $25 in bill credit.
“We appreciate the patience of our consumers, carriers and retail partners for carrying the burden during these challenging times,” said Tim Baxter, president and chief operating officer, Samsung Electronics America.
“We are committed to doing everything we can to make this right.”
The U.S. Consumer Product Safety Commission said on Thursday the Note 7’s “battery can overheat and catch fire, posing serious fire and burn hazard to consumers.”
It added that Samsung has received 96 reports of batteries in Note 7 phones overheating in the U.S., including 23 new reports since the Sept. 15 recall announcement.
In the U.S., Samsung began sending fireproof boxes and protective gloves to customers returning potentially explosive Note 7s, drawing humorous barbs from social media commentators.
The company has commenced offering similar financial incentives in its home market of South Korea, which it says would compensate consumers for their “big inconvenience.”
After days of heavy losses, Samsung’s shares ended 1.4 percent higher on Thursday while the broader market fell 0.9 percent.
On Wednesday, the firm slashed its quarterly profit estimate by $2.3 billion to reflect the impact of the Note 7 withdrawal, giving some investors hope that the financial cost of the debacle had been largely accounted for.
“We are confident the 3Q 16 re-statement puts to bed the direct financial impact of the Note 7 recall and termination,” UBS said in a report.
“In the near-term, we believe investors will re-focus on shareholders returns ahead of full 3Q results Oct 27th.”
Just moments after Samsung officially confirmed that it is stopping production of Note 7 and halting all sales, the first realistic Galaxy S8 rumors have emerged.
According to a leak on the Weibo social network there will be two variants of the Galaxy S8 – the 5.1-inch and 5.5 inch. We are quite sure that the 5.5-inch version comes with an edge shaped screen and it is likely to be imaginatively called the Samsung Galaxy S8 Edge.
According to the leak, both versions of the S8 will use Super Amoled screens. The 5.1 version comes with a QHD (2560×1440) while the 5.5 version might have a 4K display.
As we indicated before, there will be two processers powering the Galaxy S8 phones. One is the Qualcomm Snapdragon 830 while the other is the Exynos 8895. The Snapdragon 830 can be safely called the 10nm successor of Snapdragon 820. The Exynos 8895 will likely use the same processor.
It is likely that Samsung will offer Exynos powered phones in the European market and leave us with a less attractive modem. The US and some other markets will end up with the better Qualcomm variant.
The Galaxy S8 comes with two main cameras, that is the current trend for high end phones and it will incorporate the UFS 2.1 flash storage.
One not so surprising announcement is that the Samsung’s S Voice might be replaced by the Viv assistant. Samsung just bought Viv – the digital assistant that was created by one of the people who gave the world Siri.
Most of the leaked information make sense, but again, we will have to wait and see if the information is really accurate. It would make a lot of sense to see Galaxy S8 phones with the specifications mentioned above. Some colleagues are confident that the phone may launch on February 26 2017. We are confident the launch might take place a day or two before the Mobile World Congress 2017, that takes place in Barcelona and starts on 27 February.
Samsung Electronics Co cut its quarterly profit estimate by a third on Wednesday, absorbing a $2.3 billion hit from ditching its flagship smartphone in what could be one of the costliest product safety failures in tech history.
Quantifying the financial pain of Tuesday’s move to scrap the Galaxy Note 7 smartphone after a global recall and weeks of mounting problems, the world’s top smartphone maker said it expects its July-September operating profit was 5.2 trillion won ($4.7 billion), down from the 7.8 trillion won it estimated five days ago.
Samsung said in a statement the 2.6 trillion won ($2.3 billion) guidance cut reflects the sales and earning impact it currently expects from the decision to permanently halt sales of the $882 Note 7 device. Its third-quarter revenue estimate was also cut to 47 trillion won from 49 trillion won previously.
The new earnings guidance is 30 percent below third-quarter 2015’s operating profit, and left investors and analysts pondering the longer impact on Samsung’s brand and earnings. Rival suppliers of smartphones that use the Android operating system, like Samsung’s, stand to benefit if the Note 7 damage drive consumers elsewhere.
“It’s possible there could be additional profit impact in the fourth quarter but it likely won’t be as large as the third quarter,” said Park Jung-hoon, a fund manager at HDC Asset Management, which owns shares in Samsung. “I think it’s possible for fourth-quarter profits to come in as much as the high 7 trillion won range.”
Samsung shares ended down 0.7 percent on Wednesday, with the Seoul market closing before the earnings guidance cut was announced.
According to new estimates from Digitimes Research, the recently announced Google Pixel smartphone is expected to reach 3 to 4 million shipments in the second half of this year, giving a 10 percent increase in HTC’s total smartphone shipments from the first half.
Google’s latest Pixel and Pixel XL devices come in 5-inch and 5.2-inch display sizes and feature a quad-core Snapdragon 821 processor, a 12.3-megapixel rear camera, an 8-megapixel front camera and look very similar to Apple’s iPhone from an aesthetic perspective. Pricing is also very similar, as the Pixel starts at $649 for 32GB and the Pixel XL starts at $769, while the iPhone 7 is also $649 for 32GB and the iPhone 7 Plus is $769 for 32GB.
Performance similar to Snapdragon 820 devices
Recently, the performance of the latest Snapdragon 821-powered flagship Android devices has become a recent site of investigation, When averaging the top eight Geekbench 4.0.1 scores sorted by multi-core performance, the results show the Pixel and Pixel XL receiving scores of around 1,603 single-core and 4,106 multi-core, still lower on average than the iPhone 6S (2,506 / 4,320). Meanwhile, the A10-powered iPhone 7 and iPhone 7 Plus manage scores of around 3,473 single-core and 5,707 multi-core.
For the most part, the Pixel and Pixel XL seem more in line with the HTC 10 (1,745 / 3,961) and LG G5 (1,699 / 4,108), both of which feature the Snapdragon 820 with 2.15GHz high-performance cores and 1.6GHz power-efficient cores. The Snapdragon 821 features two 2.4GHz high-performance cores and two 2GHz power-efficient cores, meaning Google’s Pixel smartphones should be at least 10 percent faster than these devices, but this does not seem to be the case in this benchmarking utility for now.
Battery life is another story entirely, and this is where the Snapdragon 821 shows improvement over Snapdragon 820 devices including the previous Nexus 5X and 6P. Internet browsing over LTE improves by 60.2 percent over the Nexus 5X and 30 percent over the 6P, while talk time improves about 30 percent over the Nexus 5X and 13 percent over the 6P, according to a list compiled independently by Reddit user TyGamer125.
Pixel, Pixel XL will be 40 to 50 percent of HTC shipments
Meanwhile, Google’s launch of the HTC-manufactured Pixel smartphones is projected to increase HTC’s total handset shipments to around 6.5 and 7 million units by the end of the year, up from between 5.8 and 6.1 million units in the first half.
According to Luke Lin, a senior analyst at Digitimes Research, Pixel shipments should account for around 40 to 50 percent of HTC’s total smartphone shipments in the second half of this year.
There are signs that the smartphone component industry is picking up, after being in the doledrums for a year or so.
Japanese electronics company Sony has said that it is about to throw the switch to 11 on the production of image sensors and move its plants to full capacity in the October-March half-year.
The head of its chip-making subsidiary Yasuhiro Ueda said momentum slowed late last year due to tepid demand for smartphones, but now the plan is to make the combined monthly production equal to 73,000 wafers at Sony’s five image sensor plants. This is more than double the 70,000 wafers Sony is currently churning out.
He made the comments at a news conference on Friday at Sony’s Kumamoto factory in southern Japan, which was damaged by a series of strong earthquakes earlier this year.
Sony has its paws in about 40 percent of the market for complementary metal-oxide semiconductor (CMOS) image sensors, a type of chip that converts light into electronic signals.
The sensors were central to Sony’s recovery from years of losses stemming mainly from price competition in consumer electronics. A slowdown in the global smartphone market prompted Sony to cut sensor production in the October-March half of the last business year, but demand has since picked up.
He said brisk demand for Sony’s sensors also reflects the firm’s effort to diversify its client base, and pointed out that its clients had recently experienced some ups and downs.