TECHNOLOGY
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.
ELECTRONICS
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.
AVIATION
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.
ENERGY
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.
GAMING
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.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
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