INDIA
Apple’s handset bid fails
The nation has rejected Apple Inc’s request to import and sell refurbished iPhones to the world’s second-largest mobile population, dealing a blow to its plans to court price-conscious consumers there. The US company’s application has been turned down, a Department of Telecommunications official said yesterday. The decision — the second time the company has been refused by the government in as many years — involved several ministries as well as the Prime Minister’s Office. The company is also seeking permission to open its first Indian retail stores. That decision is pending
ELECTRONICS
Philips to sell lighting arm
Royal Philips NV announced yesterday that it is spinning off its iconic lighting division in an initial public offering so it can focus on its future as a health technology provider. The listing on Amsterdam’s Euronext exchange is to involve the company selling at least 25 percent of its stock in Philips Lighting, which had sales of 7.5 billion euros (US$8.69 billion) last year, Philips said in a statement. After the initial public offering, Philips aims to sell the remaining shares in its lighting division over the coming years. The price of the stock and timing of the offering were not announced. Philips chief executive officer Frans van Houten called the decision “historic” for the Dutch company that is still a world leader in lighting.
FASHION RETAIL
Hugo Boss profit plummets
Hugo Boss AG, the embattled German fashion retailer, reported its biggest drop in quarterly profit in at least six years as costs increased and it considers shrinking its store network. Earnings before interest, taxes, depreciation and amortization and other items declined 29 percent to 93.5 million euros (US$108.45 million) in the first quarter, the Metzingen, Germany-based company said in a statement. The average analyst estimate was 96 million euros. Sales fell 4 percent to 643 million euros, compared with analyst estimates of 647 million euros. The company said in coming months it would decide whether to close some of its shops.
AUTOMAKERS
BMW profit declines 2.5%
BMW AG’s profit declined 2.5 percent in the first quarter on investment in new technologies such as self-driving cars to defend its status as the world’s biggest maker of luxury vehicles. Earnings before interest and taxes slipped to 2.46 billion euros (US$2.85 billion) from 2.52 billion euros a year earlier, the Munich-based manufacturer said yesterday. The figure fell short of the 2.52 billion euro average of eight analyst estimates compiled by Bloomberg. BMW stuck to its forecast for a slight rise in full-year pretax profits, as growth in global auto markets offsets “high levels of upfront expenditure for new technologies, intense competition and rising personnel expenses,” the company said.
AIRLINES
Deutsche Lufthansa cuts loss
Deutsche Lufthansa AG reduced its loss for the seasonally weak first quarter by more than two-thirds after benefiting from lower fuel prices and cutting costs through the streamlining of its short-haul network. The adjusted loss before interest and tax narrowed to 53 million euros (US$61.47 million) from 167 million euros a year earlier, the German airline said yesterday. Lufthansa reiterated that it expects earnings to rise only “slightly” this year as weak ticket pricing erodes the benefits of lower oil prices.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
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