TECHNOLOGY
Dell, HP beat forecasts
Dell Technologies Inc and HP Inc reported results that topped analysts’ estimates, in a sign of strong demand for personal computers from students and workers stuck at home during the COVID-19 pandemic. Quarterly revenue from Dell’s consumer devices jumped 18 percent to US$3.2 billion, while HP said it shipped a record 18 million PCs in its fiscal third quarter. “We saw strength in the government sector and in education, with orders up 16 percent and 24 percent respectively, as parents, teachers and school districts prepare for a new frontier in virtual learning,” Dell chief operating officer Jeff Clarke said on Thursday. Dell said sales were US$22.7 billion in the period that ended July 31. Analysts, on average, projected US$22.5 billion, data compiled by Bloomberg showed. It reported earnings, excluding some items, of US$1.92 a share, beating estimates of US$1.38 a share.
TELECOMS
Bouygues replacing Huawei
Bouygues Telecom is to replace 3,000 mobile antennas made by Huawei Technologies Co (華為) in France by 2028 following a decision by the authorities to remove equipment made by the Chinese company from highly populated areas, deputy CEO Olivier Roussat said on Thursday. The US says Huawei equipment can be used by China for spying, an allegation the company denies, but which has led many of Washington’s allies to place restrictions on the firm. French authorities have told telecom operators planning to buy Huawei 5G equipment that they will not be able to renew licences for the gear once they expire, effectively phasing the Chinese group out of mobile networks by 2028, three sources said last month. “The dismantling will be carried out over a period of eight years, with a limited impact on our operating results,” Roussat said.
HEALTH
UK developing virus alert
The UK is developing a “cell broadcast” system that would allow it to deliver alerts targeted to certain locations, in an attempt to control the spread of COVID-19, people familiar with the matter said. A basic text message telling people to “stay at home” and linking to more information was sent to nearly every phone in the country in March, after British Prime Minister Boris Johnson declared a national lockdown to halt the spread of COVID-19. However, the message could not be sent out simultaneously and took most of the day to reach everybody. Government officials are now working with mobile network operators to develop a system that can quickly alert people in certain locations, said the people, who asked not to be identified speaking publicly about private plans.
AUTOMAKERS
XPeng surges on debut
Chinese electric-car startup XPeng Inc (小鵬汽車) rose as much as 67 percent on its trading debut after raising US$1.5 billion in a US initial public offering. XPeng’s American depositary shares opened on Thursday at US$23.10, 54 percent above the US$15 apiece they were sold for on Wednesday after the company expanded the size of its offering and priced the shares above a marketed range. The shares were up 51 percent to US$22.61 at 3:28pm in New York trading, giving XPeng a market value of about US$16 billion. Strong share price gains this year by Tesla Inc and NIO Inc (蔚來汽車) have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. XPeng vice chairman Brian Gu (顧宏地) said the company plans to introduce a new model yearly — a sedan next year and a larger SUV in 2022.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
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