■ Telecoms
Ericsson predicts gloom
Ericsson, the world's largest maker of mobile phone networks, posted a quarterly profit on Friday, but reported disappointing new orders and painted a dampened outlook for next year. Ericsson, based in Stockholm, reported net income of 4.8 billion Swedish kronor (US$668 million) for the third quarter, in contrast to a 3.9 billion kronor loss a year ago, though the company has had profits since the final quarter of last year. Net sales were 31.8 billion kronor in the third quarter, up 14 percent from the year before. But figures that give some indication on the future were weak: Ericsson booked 29 billion kronor (US$4 billion) worth of net orders in the third quarter, up 3 percent from a year ago but down 13 percent from the second quarter of this year. Sales growth next year will be minimal, the company's president and chief executive, Carl-Henric Svanberg, said. "We expect the global market for mobile systems to show slight growth in 2005," he said at a news conference.
■ Electronics
Hitachi raises profit forecast
The Japanese electronics company Hitachi raised its forecast for profit in the six-month period that ended Sept. 30, citing strong demand in the US for digital electronics products like flat-panel televisions and DVD players. Hitachi said that it expected to report a profit of about ¥41 billion (US$382 million) for the period, the first half of its fiscal year, up from ¥5.4 billion a year earlier and its previous forecast of ¥25 billion (US$233 million). Hitachi said that it expected to report revenue of ¥4.33 trillion (US$40 billion), an increase of 7 percent. The figures released on Friday were preliminary but are not expected to change much by the time Hitachi announces its earnings next week.
■ Hospitality
Higher bid for pubs concern
The retailer Coles Myer raised its bid for the pub and liquor store operator Australian Leisure and Hospitality Group, topping an offer made on Monday by a rival bidder, Woolworths. Coles Myer said it would pay A$1.32 billion (US$978 million), 7 percent higher than the bid of A$1.23 billion dollars by Woolworths. While the contest has so far been about gaining a greater share of Australia's market for liquor, analysts said the rising bids indicated that the fight had as much to do with corporate ego.
■ Entertainment
HBO inks deal with CCTV
US-based movie service HBO Asia has signed a deal to supply films for a new movie channel run by China's state broadcaster, a news report said yesterday. The subscription-based digital channel run by China Central Television will show three HBO movies a day beginning Jan. 1, Xinhua reported. China Digital Television launched six subscription-based digital channels in August. They include two channels for sports, one each for movies and TV series, and one each for documentaries and music. CCTV also runs more than 10 free-to-air specialty channels showing sports, news, cultural programming and other content. The first group of films shown under the deal with HBO will include Mission Impossible, D-Tox, and Mandy Moore's A Walk to Remember, according to Xinhua. DTV also has signed an agreement to show programming by the US-based National Geographic channel, the report said.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
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