Apple suppliers’ sales slow
Qualcomm Inc and Broadcom Ltd, key suppliers to Apple Inc, have implied that orders related to the iPhone tailed off more than normal at this time of year. The San Diego-based Qualcomm on Wednesday said that orders from a large “thin modem” customer tailed off at worse-than-typical levels in the quarter. It was widely interpreted that the customer is Apple. Earlier on Wednesday, Broadcom said it expected a “greater-than-seasonal decline in wireless” components, indicating fewer-than-anticipated sales of its chips for its fiscal second quarter. Broadcom provides wireless network and Bluetooth components for the iPhone.
Nintendo raises forecasts
Nintendo Co yesterday raised its outlook for profit and Switch sales for a second straight quarter following robust shipments during the holidays, the strongest sign yet that the console would be a long-term success. The Kyoto-based company raised its operating profit outlook to ￥160 billion (US$1.5 billion) from ￥120 billion for the current fiscal year ending next month. The company lifted its Switch hardware sales forecast for the period to 15 million, up from 14 million it set in October last year. Revenue was ￥483 billion in the quarter, compared with its forecast of ￥452 billion. Full-year sales are now forecast at ￥1.02 trillion, up from ￥960 billion.
Boeing Q4 profit up 92%
Boeing Co on Wednesday said that fourth-quarter earnings jumped, thanks to higher commercial plane deliveries and a boost from US tax reform, and expects more strong results this year. The US aerospace giant reported that fourth-quarter net profit reached US$3.1 billion, up a stunning 92 percent year-on-year. Revenue came in at US$25.4 billion, up 9 percent from the equivalent stretch in 2016, bolstered by higher commercial plane deliveries and increased defense revenues from deliveries of weapons systems. Boeing projected commercial plane deliveries of 810 to 815 this year, which would exceed the record 763 last year.
Shell leads in Mexico bid
Royal Dutch Shell PLC on Wednesday won nine of the 29 deepwater oil exploration blocks Mexico put up for bid in the Gulf of Mexico. The Anglo-Dutch oil giant won four of those bids in alliance with other companies. Shell was the biggest winner in the bidding round, in which 10 blocks drew no bids. Malaysia’s PC Carigali won seven blocks alone or in alliances, and Mexico’s state-owned Pemex won four blocks, two of them as part of an alliance. Mexico said the bidding ensured that nearly two dozen deepwater exploration wells would be drilled as part of billions of US dollars in investment.
Macau revenue surge 36%
Macau’s casino revenue growth surged the most in four years as high rollers and leisure gamblers headed to the world’s biggest gambling hub before the Lunar New Year rush. The weeklong holiday begins on Feb. 16. Gross gaming receipts increased 36 percent last month to 26.3 billion patacas (US$3.3 billion), Macau’s Gaming Inspection and Coordination Bureau said yesterday. That was better than the median estimate for a 27 percent increase in a Bloomberg survey of seven analysts and the highest jump since February 2014.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable