TECHNOLOGY
Ericsson earnings drop
Ericsson AB reported a bigger-than-expected drop in fourth-quarter earnings as margins came under pressure from a shift in the pattern of carriers’ demand for its 5G equipment. The Swedish maker of mobile networks yesterday reported an adjusted earnings before interest and taxes of 8.1 billion Swedish kronor (US$786.5 million) in the quarter, less than the analysts’ estimate of 10.74 billion kronor, according to the average in a Bloomberg survey. The Stockholm-based company said first-quarter earnings before interest, taxes and amortization excluding restructuring charges, would also be “somewhat lower” than a year ago, and forecast lower margins on its networks business in the first half of the year. Cost-savings initiatives would start to have an effect beginning in the second quarter, the company said in the statement.
INDIA
Google complies with court
Google would cooperate with India’s antitrust authority after the country’s top court upheld an antitrust order forcing the US firm to change how it markets its popular Android platform, the company said yesterday. The Competition Commission of India (CCI) ruled in October last year that Google, owned by Alphabet Inc, exploited its dominant position in Android and told it to remove restrictions on device makers, including those related to pre-installation of apps. It also fined Google US$161 million. On Thursday, Google lost a challenge in the Supreme Court to block the directives, getting seven days to comply. “We remain committed to our users and partners and will cooperate with the CCI on the way forward,” a Google spokesperson said in a statement.
TELECOMS
T-Mobile reports data theft
The US wireless carrier T-Mobile US Inc said on Thursday that an unidentified malicious intruder breached its network in November last year and stole data on 37 million customers, including addresses, phone numbers and dates of birth. T-Mobile said in a filing with the US Securities and Exchange Commission that the breach was discovered on Jan. 5. It said the data exposed to theft — based on its investigation — did not include passwords or PINs, bank account or credit card information, Social Security numbers or other government IDs. “Our investigation is still ongoing, but the malicious activity appears to be fully contained at this time,” T-Mobile said, with no evidence the intruder was able to breach the company’s network. It said the data was first accessed on or around Nov. 25 last year.
CONSUMER GOODS
P&G sales slip on inflation
Procter & Gamble Co (P&G), the maker of iconic household products such as Crest toothpaste, Tide detergent and Charmin toilet paper, is seeing shoppers cut back some of their purchases as they push back on price hikes. The company said on Thursday that sales slipped 1 percent in the quarter ending Dec. 31 last year, the first quarterly sales decline since mid-2017. Meanwhile, the number of products it sells globally fell 6 percent in the quarter — half of that was because shoppers reduced purchases, while the rest was due to inventory productions, it said. Profits also fell 7 percent in the quarter. P&G said it had to hike prices by 10 percent in the latest quarter and would keep raising prices as it seeks to offset higher costs in transportation, labor and other areas.
TECHNOLOGY
Ericsson earnings drop
Ericsson AB reported a bigger-than-expected drop in fourth-quarter earnings as margins came under pressure from a shift in the pattern of carriers’ demand for its 5G equipment. The Swedish maker of mobile networks yesterday reported an adjusted earnings before interest and taxes of 8.1 billion Swedish kronor (US$786.5 million) in the quarter, less than the analysts’ estimate of 10.74 billion kronor, according to the average in a Bloomberg survey. The Stockholm-based company said first-quarter earnings before interest, taxes and amortization excluding restructuring charges, would also be “somewhat lower” than a year ago, and forecast lower margins on its networks business in the first half of the year. Cost-savings initiatives would start to have an effect beginning in the second quarter, the company said in the statement.
INDIA
Google complies with court
Google would cooperate with India’s antitrust authority after the country’s top court upheld an antitrust order forcing the US firm to change how it markets its popular Android platform, the company said yesterday. The Competition Commission of India (CCI) ruled in October last year that Google, owned by Alphabet Inc, exploited its dominant position in Android and told it to remove restrictions on device makers, including those related to pre-installation of apps. It also fined Google US$161 million. On Thursday, Google lost a challenge in the Supreme Court to block the directives, getting seven days to comply. “We remain committed to our users and partners and will cooperate with the CCI on the way forward,” a Google spokesperson said in a statement.
TELECOMS
T-Mobile reports data theft
The US wireless carrier T-Mobile US Inc said on Thursday that an unidentified malicious intruder breached its network in November last year and stole data on 37 million customers, including addresses, phone numbers and dates of birth. T-Mobile said in a filing with the US Securities and Exchange Commission that the breach was discovered on Jan. 5. It said the data exposed to theft — based on its investigation — did not include passwords or PINs, bank account or credit card information, Social Security numbers or other government IDs. “Our investigation is still ongoing, but the malicious activity appears to be fully contained at this time,” T-Mobile said, with no evidence the intruder was able to breach the company’s network. It said the data was first accessed on or around Nov. 25 last year.
CONSUMER GOODS
P&G sales slip on inflation
Procter & Gamble Co (P&G), the maker of iconic household products such as Crest toothpaste, Tide detergent and Charmin toilet paper, is seeing shoppers cut back some of their purchases as they push back on price hikes. The company said on Thursday that sales slipped 1 percent in the quarter ending Dec. 31 last year, the first quarterly sales decline since mid-2017. Meanwhile, the number of products it sells globally fell 6 percent in the quarter — half of that was because shoppers reduced purchases, while the rest was due to inventory productions, it said. Profits also fell 7 percent in the quarter. P&G said it had to hike prices by 10 percent in the latest quarter and would keep raising prices as it seeks to offset higher costs in transportation, labor and other areas.
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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