Xiaomi is cleaning up. Xiaomi reported cracking Q2 2021 results underpinned by the ongoing collapse of Huawei, but it still does not make anything like enough money to make the valuation interesting. Q2 2021 revenue / net income was RMB87.8bn / RMB8.3bn comfortably above consensus at RMB81.7bn / RMB5.1bn. The vast majority of this strength came from smartphones where Xiaomi...
Musk’s effervescence may now have consequences. It appears that crashing into emergency vehicles is one mistake too far for the NHTSA which is now investigating (to be followed by Congress) the cause of these crashes and I suspect that it will conclude that Autopilot falls far short of the hype and take corrective action. Tesla’s Autopilot is controversial because it...
NVIDIA has some explaining to do. The UK competition authority clearly has more concerns than expected with regard to NVIDIA’s purchase of Arm, meaning that NVIDIA is going to have to make more concrete commitments in order to get the deal through. The UK Competition and Markets Authority (CMA) issued its report (see here) on the transaction, concluding that the...
Tencent remains the most exposed to the sanctions of the state. Tencent reported regulation-blighted results and warned that there is more to come highlighting the fact that of all the Chinese technology companies, Tencent is most at risk from regulation despite its good behaviour. Q2 2021 revenues / EPS were RMB138.3bn / RMB4.39 compared to consensus at RMB138.9bn / RMB3.28....
The end of silicon is now on the distant horizon. As part of its IDM2.0 strategy, Intel is changing its manufacturing node naming system which will bring it more into line with TSMC and Samsung but at the same time, it also underlines that the age of silicon is beginning to draw to a close. Intel’s old nomenclature, while simple,...
ByteDance tries to avoid harsh treatment. The Chinese government clamp-down on the technology industry is continuing as the CCP now owns a 1% holding in ByteDance giving it a board seat from which it will be well-positioned to ensure that ByteDance does not do anything that it does not like. Tianyancha records (Chinese corporate database) show that ByteDance has sold...
Telcos will try to break the inevitable cycle Telecom operators are once again trying to avoid becoming commodity bit pipes and this time they are trying their hand at virtual and augmented reality (VR & AR) as a way to monetise 5G. This is not a new strategy and every time so far, the operators have badly failed to really...
RFM is taking a road trip to visit all 7 emirates of the UAE and will return on August 16th.
Amazon Q2 2021 – Whoops $127bn. Amazon reported good results but shed $127bn (7%) in value as Q3 2021 forecasts failed to live up to voracious expectations, underlying once again the poor risk-reward balance in much of big tech. Q2 2021 revenues / EPS were $113.1bn / $15.12 broadly in line with expectations of $115bn / $12.28 but it was...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
China vs. USA – The first cracks.
The CCP does what the USA cannot. Didi is a great example of the long-term negative effects of overregulating an industry can have and hands an advantage to China’s arch-rival, the USA. Didi is suspending its plans to expand into the UK and Europe for at least one year but this could be much longer or even permanent depending on...