Tag Archives: aapl

Samsung Galaxy S7: Qualcomm, Qorvo Displace Cirrus Logic, Broadcom

Apple ( AAPL ) supplier Qualcomm ( QCOM ) quintupled its content in the Samsung Galaxy S7 smartphone as radio frequency-chipmaker  Broadcom ( AVGO ) repeatedly lost share to rival Qorvo ( QRVO ), a ChipWorks teardown  shows. The ChipWorks teardown was last week, but it was highlighted in a research report Monday by Needham analyst Rajvindra Gill. InvenSense ( INVN ), another Apple supplier, apparently lost the GS7 gyroscope to STMicroelectronics ( STM ). InvenSense stock was down 1.5% in midday trading on the stock market today . STMicro stock was up a fraction. Three  Skyworks Solutions ( SWKS ) chips were completely replaced in the GS7. Key winners in getting their chips inside the new phone, besides Qualcomm and Qorvo, included  NXP Semiconductors ( NXPI ) and Maxim Integrated Products ( MXIM ). Although Broadcom retained a power amplifier, rival Qorvo swiped two Broadcom components from the GS7. But Broadcom replaced a Skyworks multiband module (a power amplifier). Last week, Broadcom CEO Hock Tan bragged that the chipmaker has increased its content by 20% every year for its “North American customer,” which analysts said is the Apple iPhone, and that another bump is expected with the release of the next iPhone, the iPhone 7, due out in September. Meanwhile, though, Broadcom is de-emphasizing its mobile unit, which will comprise 23% of Q2 sales, down from 32% in Q1, as smartphone shipments slow amid a saturated market. Samsung lowered its own chip content in the GS7 vs. the GS6. Qualcomm took four chips (including the application processor) from Samsung and replaced Cirrus Logic ( CRUS )/Wolfson on an audio chip. SK Hynix, NXP and Maxim each replaced a Samsung component. But Samsung swapped STMicroelectronics’ touch controller in the GS6 for its own controller in the GS7. And Texas Instruments ( TXN ) lost the wireless power receiver to Integrated Device Technology ( IDTI ).

Hackers, Insiders Can Threaten M&A Activity, Say IBM, Fortinet

Chinese hackers had already roamed Nortel’s systems for nearly 10 years when, five years after the breach discovery, business communications firm Avaya acquired bankrupt Nortel Enterprise Solutions — and, unknowingly, also acquired that company’s attackers. That was a bellwether moment for the M&A world, says Caleb Barlow,  IBM ( IBM ) vice president of security. Until then, an acquisition target’s cybersecurity situation wasn’t a box on the usual M&A checklist. “It was the moment everyone in the M&A community woke up,” Barlow told IBD. “They said, ‘We better be looking at their security posture as well, otherwise you could not only legitimately acquire the company, but also the attacker.” As Barlow recounts, Nortel’s downfall came down to seven passwords, including the chief executive officer’s. Hackers with Chinese IP addresses gained access to Nortel’s network as early as 2000 and so thoroughly dug in that they weren’t discovered until 2004. Avaya, which acquired that Nortel business for $900 million in 2009, didn’t learn of the breach until after its acquisition closed. And even then, the hackers were still entrenched in the system. “No one had really thought about this type of problem before because cybersecurity wasn’t one of the normal things you’d think about in the M&A process,” Barlow said. “In my view, it’s now a critical component.” Quantifying Risk In A Bidding War Consulting firm Deloitte found 70% of 2,500 firms surveyed in 2015 considered security to be a “high” or “very high” priority in M&As. That’s up from 64% in 2014. Both corporate and private equity respondents increased their due diligence efforts over the span of the year. But also in the 2014 Deloitte survey, 78% of firms said security wasn’t a general piece of M&A due diligence, and 66% said rapid-fire M&A bidding made cyber risks “very difficult” to quickly quantify. Deloitte didn’t reiterate those questions in its 2015 survey. Rapid-fire M&As include  Apple ( AAPL ) chip supplier Skyworks Solutions ( SWKS ) and Microsemi ( MSCC ) last year facing off in a month-long bidding battle for PMC-Sierra ( PMCS ). Due diligence might or might not have been rushed in that deal, but such aggressive bidding wars are infrequent, Fortinet ( FTNT ) CFO Drew Del Matto told IBD. More often, an acquirer examines a target’s products, financials, policies and systems. IT security is just a new layer of the necessary due diligence. This mindset is new, and there are built-in risks with every piece of due diligence, NSS Labs CEO Vikram Phatak says. NSS Labs independently tests and reports on the efficiency of cybersecurity products, similar to Consumer Reports. It’s likely an acquirer has “a really good handle on the debt the company will have, the expense structure of the company, the historical growth rates,” he told IBD. “Where you get a little sticky is they may not have time to do all the (security-related) due diligence by calling the customers.” Cybersecurity works along the same lines, Phatak says. Tech companies, especially, should have a keen understanding of the security measures in place, BitSight CEO Stephen Boyer told IBD. BitSight rates the cybersecurity posture of about 40,000 companies, similar to a FICO score, so customers can assess their own security risk but also the risks of potential or current partners, vendors and customers. “If you go in and say, ‘Who’s in charge of this (security)?’ and everyone looks around, then you probably have a problem,” Boyer said. Avoiding Post-Merger Slip Even including cybersecurity within due diligence isn’t a surefire protection, Boyer said. Former telecom provider Pacnet discovered a breach on April 3, 2015, after Telstra finalized its $697 million acquisition of Pacnet. Telstra was notified on April 16 — the day the merger completed. An SQL code injection on a Pacnet Web service application server opened hackers to the network, email and administrative processes. Acquirers should be “monitoring that window of due diligence up until the week the deal closes,” Boyer said. “Monitor it all through the process, because there would be a slip-up along the way.” Before signing off on a merger, an acquirer should get a sense of the target’s cybersecurity culture, Barlow says. Examine past incidents — processes, logs and reports. if those documents aren’t available, then there might be a problem. That goes double for a tech company. “If they don’t have those policies in place, then you start asking other questions,” Barlow said. “If they weren’t paying attention to security, what else weren’t they looking at?” Phatak suggests acquirers also scope out a target’s security vendors. Not every cybersecurity vendor is built the same and the quality of a target’s security purchases can be very telling, he told IBD. “Make sure the company you’re acquiring didn’t skimp on security,” he said. “(Products) are not all equal, but from a compliance perspective, a check-box perspective, they all look the same.” Breaches From The Inside Del Matto estimates two-thirds of breaches come from the inside, at the hands of either careless or disgruntled employees. M&A, often accompanied by layoffs, can breed the latter. “When people feel like they’re at risk, they’re more likely to do something that may expose the company to a cyber risk,” Del Matto said. More benign actions, like inadvertently visiting an infected website, can lead to malware attaching on the system. But Del Matto is more concerned about the damage a disgruntled employee with absolute access can wreak. Barlow suggests a company identify its “crown jewel” and then tuck it into a protected place with limited access. That crown jewel could be IP, financial information, client lists, personal information — basically anything worth stealing, Phatak told IBD. “If someone is able to get into the customer list, they could see what deals are in the (pipeline),” Del Matto said. “They may monetize those by selling them or, worse, leaving the company with those lists in their hands.” Beyond guarding that data, an M&A-engaged company should embrace employees into the new culture, he said. Because, “when you buy a company, you buy a competitive advantage. If that leaks out in some other way, you’re destroying the value of the M&A.”

Comedians Mostly Sidestep iPhone Issue, Joke About Facebook Buttons

While Apple ( AAPL ) has garnered the support of the tech industry and civil liberties groups for its stance on smartphone security, the issue appears to have been too complex or serious for most comedians to want to touch. Among the late-night comedians, only Seth Meyers of NBC’s “Late Night” took aim at the subject of smartphone encryption and explained why it’s important that consumers know about it. Meyers devoted a nearly seven-minute segment, called “ A Closer Look, ” of his show to examine Apple’s refusal to unlock iPhones for law enforcement officials. Of course, Meyers couldn’t resist making some jokes at Apple’s expense. “Apple is fighting back against critics and says it has no ‘sympathy for terrorists’ despite refusing FBI orders to unlock private iPhone data. In fact, Apple hates terrorists so much, it’s releasing a new U2 album just for them,” Meyers said. Meyers’ late-night rivals devoted much more time to mocking Facebook ’s ( FB ) new reaction buttons. What follows are recent jokes from America’s late-night comics on issues of science and technology. In addition to Facebook, other targets of jokes included Amazon.com ( AMZN ), eBay ( EBAY ), Fitbit ( FIT ), LinkedIn ( LNKD ), and the humanoid robot Atlas developed by Alphabet ( GOOGL )-owned Boston Dynamics. Joining Meyers in on the fun were Jimmy Fallon, Conan O’Brien, Jimmy Kimmel, James Corden and Stephen Colbert. Conan: In addition to the “like” button, Facebook has now added buttons for “love,” “wow,” “haha,” “sad” and “angry.” In other words, Facebook copied the emotional journey of any Adele album. Kimmel: Facebook today rolled out a new thing called “Reactions.” Now instead of “liking” when a friend’s dog passes away, which is weird, you can be much more thoughtful and sensitive, posting a sad emoji with a giant tear squirting out of its face. Corden: Facebook has launched new alternatives that go beyond its trademark “like” button. Basically Facebook is doing what I tried and failed at with so many women — moving beyond just “like.” Fallon: Some crazy tech news. I saw that a company in Boston built a 5-foot-9 robot that can open doors, and can actually get back up if it’s punched. They didn’t MEAN to test whether it can get up after being punched, but well, it’s Boston. (BOSTON) “Not so tough, are ya, Terminator?” Meyers: Engineers at Boston Dynamics have unveiled a humanoid robot that can withstand getting pushed in the chest with a hockey stick without falling over. Which is definitely the most Boston way to test a robot. Conan: In France, a robot has been programmed to develop its own taste in art. The robot’s favorite paintings? Naked robots. Conan: Chase bank ATMs are getting a new feature that will allow customers to withdraw cash without using a card. The feature is called “a crowbar.” Conan: A recent study found that bottlenose dolphins sometimes murder other dolphins. However, police say it’s easy to find the culprit because dolphins love to squeal. Fallon: This is a little controversial. I saw that Oral Roberts University is now telling students that wearing Fitbits is mandatory, and logging less than 10,000 steps a day will affect their grades. So finally, some good news for students doing the walk of shame. “12,000 steps — zero regrets!” Meyers: President Obama posted on LinkedIn today about his first job — scooping ice cream. He’s the first president to post on LinkedIn — other than, of course, Abraham LinkedIn. Meyers: A recent study suggests that it’s harder to concentrate in the winter. Said researchers, “For example, this study was supposed to be about traffic accidents.” Colbert: You guys like the website Amazon.com? It’s like eBay, but the things you buy don’t arrive smelling like cigarettes. Colbert: Amazon’s always been on the cutting edge. From drone delivery, to automated warehouses, to shipping six AA batteries in a box the size of a mini fridge. Colbert: Amazon is planning to open hundreds of actual physical bookstores. That’s exciting because you don’t see those much anymore and I think this could be the start of a whole trend of online retailers going real-world. For example, Tinder could open a singles bar, where everybody walks around stating their height.