IBM Corp, the world’s largest -computer-services provider, and Apple Inc, maker of the iPhone and iPad, announced earnings that beat analysts’ estimates, adding to evidence of a rebound in corporate spending on technology.
IBM reported fourth-quarter profit and revenue on Tuesday that topped analysts’ predictions, buoyed by demand for computer systems and software. Apple said more than 80 of the world’s top 100 companies are using the iPad tablet computer, contributing to the company’s record quarterly sales.
Businesses are spending more on products ranging from IBM mainframes to smartphones and tablet computers. That bodes well for results due in coming weeks from Hewlett-Packard Co, Microsoft Corp, Dell Inc and other companies that supply corporations with computers, services and software.
Photo: Bloomberg
Last week, Intel Corp, the world’s biggest chipmaker, forecast sales that may top estimates as companies upgrade computer and server fleets.
“As companies have gotten through a couple of years of underinvestment, they really need to refresh their infrastructure,” said Abhey Lamba, an analyst at ISI Group in New York. “The December quarter was really great for servers.”
Per-share profit rose to US$4.18, Armonk, New York-based IBM said, topping the US$4.08 average estimate of analysts surveyed by Bloomberg. Sales climbed 6.6 percent to US$29 billion as hardware revenue got a boost from IBM’s newest mainframe and as companies bought more analytics software. Analysts estimated sales of US$28.3 billion on average.
Apple said sales increased 71 percent to US$26.7 billion, exceeding the US$24.4 billion predicted by analysts in a Bloomberg survey. The company sold 7.33 million iPad tablet computers in the first holiday season for the device, Apple said. That topped the 6 million projected by Mike Abramsky at RBC Capital Markets LLC.
“Employee demand for iPad in the corporate environment continues to be significant,” Apple chief financial officer Peter Oppenheimer said. “Enterprise [chief information officers] are adding iPads to their approved device list at an amazing rate.”
JPMorgan Chase & Co, Cardinal Health Inc and Wells Fargo & Co are among companies now testing or using the device, he said.
Companies are using the iPad for product demonstrations, approving shipping orders and calling up finance options to help sell products ranging from cars to loans, customers such as Wells Fargo, SAP AG and Tellabs Inc said after its introduction last year.
Separately, ASML Holding NV, Europe’s biggest semiconductor equipment maker, posted fourth-quarter profit that beat analyst estimates, with last year’s sales rising to a record.
Net income advanced to 407 million euros (US$549 million) in the quarter from 50.5 million euros a year earlier, the Veldhoven, Netherlands-based company said in a statement yesterday. That beat the 325.8 million euro average of 11 analysts’ estimates compiled by Bloomberg. Net sales rose to 1.52 billion euros, higher than the 1.34 billion euro Bloomberg estimate.
“The fourth quarter was a strong close to a remarkable year in the history of ASML during which we achieved record sales, profit and bookings,” ASML chief executive officer Eric Meurice said in the statement.
ASML said it expects first-quarter net sales this year of about 1.4 billion euros and said the company has the potential for this year’s sales of more than 5 billion euros. Sales last year rose to 4.51 billion euros.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San
Clambering hand-over-hand, sweat dripping into his eyes, a durian laborer expertly slices a cumbersome fruit from a tree before tossing it down to land with a soft thump in his colleague’s waiting arms about 15m below. Among Thailand’s most famous and lucrative exports, the pungent “king of fruits” is as distinctive in its smell as its spiky green-brown carapace, and has been farmed in the kingdom for hundreds of years. However, a vicious heat wave engulfing Southeast Asia has resulted in smaller yields and spiraling costs, with growers and sellers increasingly panicked as global warming damages the industry. “This year is a crisis,”