This week, big tech companies such as IBM and Intel will report quarterly earnings, followed by Apple, Facebook, Alphabet, Amazon and Microsoft next week. Some companies — such as Amazon, Intel, Micron Technology and Microsoft — are doing well, even growing, whereas Facebook and Alphabet deal with a dramatic plunge in advertising. Even Apple issued a “rare profit warning.” The pandemic is hitting startups particularly hard, as venture capital money dries up and they are forced to lay off staff. Continue reading Pandemic Tests Big Tech Firms, Slows VC Money for Startups

Chinese telecom equipment and systems company ZTE, which has about $17 billion in annual revenue, has ceased “major operating activities” in the wake of the Trump administration’s ban on it using U.S.-made components for the next seven years. Trading in its shares has been suspended for weeks, and its workers in the Shenzhen factory have little to do but attend occasional training sessions. New guidelines tell its staff to reassure clients, but not discuss the details of the U.S. technology the company is currently banned from using. Continue reading ZTE Ceases Main Operations in Response to U.S. Sanctions

Apple plans to leverage the recently passed tax legislation, said to be the most important in 30 years, by bringing $350 billion back to the United States over the next five years. Of that, $252 billion in cash was held abroad; Apple keeps 94 percent of its total cash outside the U.S. A provision in the new tax code allows a one-time repatriation of corporate cash held in other countries. The move is consistent with Apple’s long-time stance that it wouldn’t bring the cash back until the tax code changed. Continue reading With New Tax Legislation, Apple to Repatriate $252B in Cash

Qualcomm turned down Broadcom’s offer to acquire the company for $105 billion, with its board stating that the offer both significantly undervalues the company and could be beset by regulatory issues. Broadcom, which will seek other avenues to make the deal, says it is committed to the acquisition. Should Broadcom acquire Qualcomm, the merger of these two titans of chip manufacturing would create a single behemoth controlling chip production for everything from consumer devices to data centers. Continue reading Qualcomm Rejects Broadcom’s Offer, But Deal Is Still In Play

In the latest update to the Samsung Galaxy Note 7 saga, the company announced it would permanently discontinue production and sales of the smartphone, “pulling the plug on a premium product whose botched recall has brought headaches to consumers and inflicted damage on the Samsung brand,” reports The Wall Street Journal. In the wake of overheating problems and reported fires, the company explained to South Korean regulators that it would cease making the device. Analysts including Sanford C. Bernstein’s Mark Newman suggest Samsung should drop the Galaxy Note series altogether, while Macquarie analyst Daniel Kim estimates losses could reach $2.8 billion for the last three months of 2016, explains WSJ, “enough to wipe out the entire mobile division’s operating profits for the fourth quarter.” Continue reading Samsung Pulls the Plug on its Troubled Galaxy Note 7 Phone

Google plans to use the approach of acquired Webpass to more cost-efficiently develop and rollout its Fiber fast Internet business. The San Francisco-based Webpass, founded by Charles Barr, is known for using wireless technology to build fast broadband service in cities in a speedier and most cost effective manner. Verizon, Comcast and AT&T, meanwhile, have spent billions of dollars digging up streets to lay fiber cable. Google will pair Webpass’ approach with wireless technology it is currently developing. Continue reading Google Pairs Webpass with its Wireless Tech for Fiber Rollout

Google is building technologies that rely less on physical devices: Google Home and its virtual assistant; Project Jacquard, clothing with computing built into the yarn that responds to gestures and voice commands; and Project Soli, that allows gestures to control computers. Also new is Project Ara, a smartphone design that “surrounds” the user wherever she goes, which chief executive Sundar Pichai calls “ambient computing.” What’s unclear with the new paradigms, however, is how Google will generate revenue. Continue reading Google’s Virtual Products Could Upend Traditional Ad Models

Hulu is the latest platform to compete with traditional pay TV services. Separate from its current on-demand programming model, Hulu plans to launch a cable TV-style online service in Q1 2017, say those familiar with the company’s plans. Hulu co-owners 21st Century Fox and The Walt Disney Company are likely to strike agreements to license many of their channels. ABC, ESPN, Disney Channel, the Fox network, Fox News, FX and Fox national and regional sports channels are also anticipated to be part of the lineup. Continue reading Hulu to Launch Pay TV Service, Joining Other Digital Players

Foxconn, the Taiwan-based factory operator best known for assembling Apple’s iPhones, is acquiring two-thirds of Japanese electronics manufacturer Sharp, which supplies phone screens to Apple. The $3.5 billion deal, which follows a slew of public negotiations, rumors and setbacks, could provide Foxconn with leverage to make it a more attractive Apple partner. However, some analysts suggest that the acquisition will hand Foxconn an ailing and costly business. Foxconn is facing rising labor costs in China and a global slowdown in smartphones, while Apple diversifies its supply chain. Continue reading After Months of Setbacks, Foxconn Strikes Deal to Buy Sharp

Ericsson and Cisco Systems, leaders in mobile and Internet equipment respectively, are forming an alliance to beat back the competition, enjoy synergies in the mobile market and target the growing fields of Internet of Things and 5G. The alliance isn’t a merger, but in many ways acts like one: Ericsson and Cisco plan to integrate their existing equipment, combine some sales and consulting areas and perhaps develop new hardware and services. Competitors include Chinese company Huawei and Nokia, which just bought Alcatel-Lucent. Continue reading New Ericsson, Cisco Alliance to Impact Internet of Things, 5G

Apple’s revamped Beats Music streaming service will debut later this year and will be looking to take on other popular streaming services such as Spotify. Originally, Apple intended to offer Beats Music at $8 per month, instead of the competition’s standard $10 per month, by using its leverage in the music industry to secure cheaper rights. The negotiations fell through, and with no plans for a free version of Beats Music, Apple may have to work harder to attract customers. Continue reading Apple’s Upcoming Beats Music Relaunch Has Spotify In Sight