Google Teams Up with Samsung, Groupon Brings Us Breadcrumb: Weekly Tech Business Recap
Here’s your Cheat Sheet to the top tech business stories of the week:
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Google (NASDAQ:GOOG) is linking up with Samsung (SSNLF.PK) on a 10-inch Nexus tablet, according to the reliable Richard Shim at NPD. The tablet is reportedly rather expensive and will sport a higher-resolution display of 2500×1600, compared to the one in the new iPad with 2048×1536.
Shares of Research In Motion Limited (NASDAQ:RIMM) fall after Peter Misek at Jefferies forecasts that BlackBerry 10 won’t be ready until March, even though the firm promised only that the devices would become available at some point in the first quarter. Additionally, Misek reports that “checks point to a tough November quarter,” since channel partners are reducing their inventories, while he remains dubious that the company will find a buyer.
OTR Global reports that Microsoft Corporation’s (NASDAQ:MSFT) new virtualization and management software products are cutting into VMware’s (NYSE:VMW) sales and the comment has sent shares of the latter tumbling on Tuesday. The problem for VMware is that the most recent version of Microsoft’s Hyper-V virtualization platform, recently introduced as a part of Windows Server 2012, has garnered favorable reviews, as did an update to Microsoft’s System Center management software.
International Business Machines Corporation (NYSE:IBM) and AT&T (NYSE:T) collaborate to offer a solution that includes the former’s cloud storage and information tech services and the latter’s telecom network. This linkup appears to be the “closest relationship” that IBM has ever formed with a phone carrier, says Bloomberg, noting that the firm’s offerings sometimes compete with the value-added services provided by ‘telcos’. Spending on cloud storage spending is soaring and the firm hopes to generate $7 billion in cloud-related revenue in 2015.
Citi starts both Lexmark International (NYSE:LXK) and Dell (NASDAQ:DELL) at Sell as part of a broader information tech hardware coverage initiative. The analysts are concerned about the impact of the bring-your-own-device trend, which favors Macs over Windows systems, on Dell, which once again is seeing near multi-year lows.
Amazon.com’s (NASDAQ:AMZN) streaming arrangement with Epix appears to have contained interesting terms as an executive involved in the discussions told Reuters that Epix will receive a payout above its fixed up-front fee should Amazon’s streaming subscriptions surpass a certain threshold.
The Securities and Exchange Commission was able to pull crucial data from Facebook (NASDAQ:FB) ahead of the firm’s now famous IPO, reports Bloomberg. A spate of emails between the parties “depicts a management team… still guessing at even rudimentary aspects of its business.” A number of problems that are “now unnerving investors were foreshadowed” appeared in the correspondence, including those regarding Facebook’s mobile strategy.
An update into the Federal Trade Commission inquiry into Google’s (NASDAQ:GOOG) and Motorola’s policies in regards to licensing standard-essential patents and suing firms that they say infringe the IP has been provided by The New York Times. The commission has issued subpoenas requesting information from Google, along with rivals like Apple and Microsoft, and has also questioned representatives from the firms.
According to The Guardian, the iPad Mini (NASDAQ:AAPL) will appear in a Wi-Fi-only version which might be a negative for iPad baseband and RF component vendors such as Qualcomm (NASDAQ:QCOM) and Skyworks Solutions (NASDAQ:SWKS). However, 3 to 4 gigabyte iPads have been premium products, with consumers largely favoring Wi-Fi-only models.
So as to relieve European Commission worries that it’s unfairly pushing out rivals, Google (NASDAQ:GOOG) makes an offer to place its brand on any of its maps, stock quotes and other in-house services appearing in its search results, according to The Financial Times.
Groupon (NASDAQ:GRPN) will target restaurants with a new point-of-sale service called Breadcrumb which runs on iPads. The firm charges a sliding monthly fee for the new sales and ordering system based on the number of iPad terminals a location will employ.
Shortages of iPhone 5s (NASDAQ:AAPL) are being exacerbated by a “quality-control crackdown” at Foxconn, linked to scratches, says a source to Bloomberg. This report agrees with prior stories of labor disturbances caused by workers who are unhappy with Foxconn’s quality-control rules; some employees said that each step in the iPhone 5 production process carries the danger of scratches to its aluminum back.
Microsoft Corporation (NASDAQ:MSFT) executive Steve Ballmer has said in his annual letter to shareholders that “We will focus relentlessly on delivering delightful, seamless experiences across hardware, software and services.” He added that Microsoft’s wish to “unify the cross-device user experience” among PCs, mobile devices, servers, and cloud services is still policy.
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Chief Technology Officer Ash Munshi has left Yahoo! (NASDAQ:YHOO), a company spokesperson has told BI. Munshi worked under three chief executives and was appointed by Carol Bartz. Marissa Mayer has been reconfiguring Yahoo’s management since taking over this summer.
Wells Fargo & Co. (NYSE:WFC) will supply financing for an 11.3 megawatt solar project being developed by MEMC Electronic’s (NYSE:WFR) Sun Edison division in New Mexico, and will represent the sixth Sun Edison utility scale solar project funded by Wells in the past year. Upon completion, El Paso Electric Co. (NYSE:EE) will buy the power supplied by the project over the next 25 years.
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Facebook (NASDAQ:FB) launches a big overhaul of its popular Open Graph social sharing platform, which looks to reduce spam. The newly remade platform will not permit “Custom actions” from developers that automatically share activity and also removed is an API which enables users to post activity to a friend’s wall.
Groupon (NASDAQ:GRPN) shares move up Thursday, following a fall Wednesday in reaction to word of eBay’s (NASDAQ:EBAY) entry into the daily deals market. For its part, the former intends to introduce a new ad campaign that will launch in the first quarter and also plans to choose an agency partner in the current quarter.
Shares of the 4 gigabyte network owner Clearwire Corporation (NASDAQ:CLWR) tripped up circuit breakers, gaining more than half their value as the firm canceled a Deutsche Bank conference appearance while taking a prominent role in the Sprint-SoftBank media circus. At the moment, David Faber now says it will be Sprint Nextel Corporation (NYSE:S), rather than SoftBank, who would purchase Clearwire in any deal, while SoftBank would take a 70 percent plus interest in Sprint. Further, Faber’s sources say that the odds of a deal are still higher than 50/50, but that the day’s leaks reduced the chances. Meanwhile, observers could use a flow chart to track the rumors.
Significant growth in the capital expenditures of Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), and Amazon.com (NASDAQ:AMZN) is being seen, which reflects higher demand for cloud services, online video, and mobile content as worldwide investment in data centers is estimated to jump by 22 percent in 2012, to $105 billion, says the research firm Datacenter Dynamics. This surging demand is also a major reason why Equinix (NASDAQ:EQIX) shares have prospered during the year.
Siemens AG (NYSE:SI) will possibly describe its job cuts and office closures on Thursday, through which to curb slumping profits as customers postpone ordering engineering equipment, according to Reuters. Chief Executive Peter Loescher’s plan to spur growth with energy-saving and infrastructure products has been unsuccessful, and analysts now think that he will present managers with a plan as much as €4 billion, or $5.2 billion, in cost reductions.
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Softbank Corp (SFTBF.PK) is negotiating a massive loan with three major Japanese financial groups, including Sumitomo Mitsui (NYSE:SMFG), Mizuho (NYSE:MFG), and Mitsubishi UFJ (NYSE:MTU). The former wants to borrow $23 billion to fund its offer for Sprint Nextel Corporation (NYSE:S), according to Reuters. Sprint might be worth $17.3 billion, but it also carries nearly $15 billion of debt. Meanwhile, investors in Japan have not reacted very well to news of the talks, as Softbank’s shares closed down 17 percent there.
Jeff Bezos confirms that Amazon.com (NASDAQ:AMZN) has not made money from the Kindle, as he explained to BBC that “We sell the hardware at cost. We want to make money when people use our devices, not when they buy them.” The crux of the matter is that the company gains its profits from the books, applications, films and other products purchased by Kindle users.
The iPad Mini (NASDAQ:AAPL) will be introduced at an event on October 23rd, says John Paczkowski at AllThingsD, who had previously predicted that the date would be in that month. A rumor that press invitations would come on Wednesday didn’t prove correct. The Mini’s debut is said to have been delayed by manufacturing yield problems.
Shares of the carrier Clearwire Corporation (NASDAQ:CLWR) double-spiked on anticipation that the firm will be purchased at an acceptable premium to recent levels, pursuant to a SoftBank/Sprint linkup. Shares are now up some 92 percent over the last 2 days. On the other hand, Sprint Nextel (NYSE:S) moves a bit lower after Thursday’s large gains.
The Workday (WDAY) IPO did not let the firm down, as shares opened at $48.05 and are topping $50 near the close, up more than 78 percent from its elevated IPO price of $28. The company has been characterized by some as the future of enterprise-class human resources software.
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Microsoft Corporation (NASDAQ:MSFT) is said to be planning to shell out between $1.5 billion and $1.8 billion to promote Windows 8, and a massive marketing blitz will be set off over the weekend. The interface with Metro, and ARM processor support could help make the product the biggest refresh for Windows in 17 years.
Chief Executive Marissa Mayer of Yahoo! (NASDAQ:YHOO) will see her priority of a new home page a reality as the firm launches the remake. Modifications from the former version include fewer links to Yahoo sites, weather and astrology modules, along with a Twitter-style news module that updates as the user scrolls. Meanwhile, Yahoo’s 4.4 billion home page views per month still bring scads of advertising revenue.
Google (NASDAQ:GOOG) has launched what it calls the “biggest update ever” for Street View, consisting of an additional 250,000 miles of roads that have been added for more than 17 countries. The search major has been occupied with making upgrades to Maps in 2012, attempting to remain ahead of Nokia Corporation (NYSE:NOK), Apple’s (NASDAQ:AAPL) iOS 6 Maps application, and OpenStreetMap. This year’s enhancements include new traffic data, off-line mobile caching, 3D images,and additional high-res satellite and aerial imagery.
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