HTC has lost its edge and there is no sign of its return. From its financial forecasts to the leaked products it is due to release, it looks very much as if 2014E will compound the agonies of 2013. In Q1 14E revenues / EPS are expected to be NT$34bn-NT$36bn and a loss of NT$2.10...
Another round of bean counting reveals a dire outlook. The rotating doors are still turning as the old guard exits to be replaced with John Chen’s chosen crew. Latest to go is Andrew Bocking who was responsible for BBM. In contrast to most of the others, it looks like Andrew Bocking has left of his...
The 3DS gives Nintendo some time but it must act now. Given, its awful performance to date, Nintendo’s results surprised me but they do nothing to avert the issues that the company currently faces. Nintendo sold 1.95m Wii U units during Q4 which combined with reasonable sales of the 3DS allowed the company to make...
The narrow focus of some ecosystem plays is starting to hurt. First there was Twitter, now there is Linked-in. Linked-in reported disappointing results as growth slowed more than expected causing investors to worry about the longer-term growth. Linked-in, like Twitter, has a valuation (12.4x 2014E EV/Sales), that is already pricing in high growth in the...
When so much is pinned on the future, the tiniest wobble is catastrophic. Twitter reported great maiden results but the slowing user growth caused the stock to lose nearly a fifth of its value. Q4 revenues and EPS were $243m / $0.02 compared to consensus at $217m and a loss of $0.02. Guidance nicely trumped...
Sony must still control the experience on PCs if it sells. While all the attention is on Microsoft, it appears that Sony is looking to quietly get rid of its PC business. This is not a big deal in itself but if one considers the ecosystem that Sony is trying to build, this is a...
The opportunity is at risk from taking the easy option. The naming of Satya Nadella as the next CEO could cause some wild gyrations in the share price. The market wants Nadella as CEO because it believes that his strategic choice will be to break the company up to focus on just Enterprise (see here)....
Being limited to social networking will not hit growth in 2014. Facebook reported strong Q4 results as it continued to improve on its ability to monetise the traffic being generated by mobile devices in its ecosystem. Revenues / EPS were $2.39 / $0.31 compared to estimates of $2.35bn / $0.27 where mobile revenues drove most...
Google is taking big steps to bring Android to maturity. Selling Motorola Mobility is a further step by Google to mature its ecosystem from the rather chaotic reality in which it currently exists. Google has finally decided to get rid of Motorola Mobility letting it go to Lenovo for around half what it paid for...
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.
Lenovo Q3 – Narrow squeak.
Lenovo can absorb Motorola and just avoid red ink Lenovo will be skating on very thin ice when it absorbs Motorola as the handset maker is so unprofitable that it could push Lenovo into the red. Lenovo reported good Q3 results as it gained share in PCs but margins remain wafer thin. Q3 Revenues /...