Tag Archives: apple

Apple Supplier Taiwan Semiconductor: Demand For $500 Phones Dying

Apple ( AAPL ) supplier Taiwan Semiconductor Manufacturing ( TSM ) issued flat Q2 guidance early Thursday, noting demand for $500 smartphones is dwindling as China and emerging markets embrace cheaper devices. But on the brighter side, the chipmaker says it will reuse 95% of its chip-manufacturing tools as it transitions to 7-nanometer chips from 10-nm in 2017 through 2019. Growing 4G and 5G opportunities will drive the adoption, TSM’s co-CEO Mark Liu told analysts on the conference call. That’s not good news for chip-gear makers, though. The reuse rate will likely lead equipment makers to a year or two “in the desert between major technology nodes,” Semiconductors Advisors President Robert Maire wrote in a research report. Taiwan Semiconductor stock fell 3.4% to 25.29 on the stock market today . IBD’s 39-company Semiconductor Electronic-Manufacturing industry group was down 0.7%. Apple shares rose 6 cents to 112.10. IBD’s Take: How healthy is Taiwan Semiconductor’s stock, and how does it stack up vs. rivals? Find out at IBD Stock Checkup For its Q1 ended March 16, Taiwan Semiconductor reported $6.14 billion in sales and 38 cents earnings per American Depositary Receipt ex items, down a respective 13% and 18% on a year-over-year basis. Sales beat TSM’s updated guidance for $6.06 billion to $6.11 billion (based on an exchange rate of $1 to 33.18 New Taiwan dollars), and met the consensus model of seven analysts polled by Thomson Reuters. Current-quarter sales guidance for $6.64 billion to $6.74 billion (at $1 to NT$32.37) lagged expectations for $7.01 billion and would be flat year over year, but up 8%-9% sequentially. The consensus sees 39 cents per ADR ex items. For the year, Taiwan Semiconductor guided to 5%-10% growth, but it cut its smartphone growth expectations to 7% from 8%. It sees its PC, tablet and consumer electronics revenue falling 6%, 9% and 5%, respectively, in 2016. Semiconductors will grow 1%, Liu said. China and emerging markets prefer lower-tier smartphones, as demand for high-end smartphones slips. In January, high-end smartphone maker Apple guided to $50 billion to $53 billion in March-quarter sales, which would be down 11% year over year at the midpoint and mark its first such decline. Industry tracker Gartner says smartphone sales will grow 7% in 2016 to 1.9 billion units. It would be the industry’s first year of single-digit growth, and Liu noted the decline in his remarks. “We see (the) over-$500 phone is reducing, but (the) $400 phone is increasing quickly,” he said.

Microsoft Sues Justice Department Over Secret Data Searches

Microsoft ( MSFT ) has filed a lawsuit against the U.S. Justice Department challenging the government’s authority to bar tech firms from telling customers when their personal data has been turned over to federal agents. Microsoft on Thursday called the Justice Department’s actions unconstitutional and wants to stop the government from forcing it to give customers’ email and other data to law enforcement agents without their knowledge. The Microsoft lawsuit is the latest legal clash between technology companies and the U.S. government over how much private businesses should assist government surveillance and law enforcement efforts. Apple ( AAPL ) has resisted government demands that it make software for authorities to unlock its customers’ encrypted iPhones. Last month, the Justice Department withdrew an order that Apple disable the security on an iPhone belonging to San Bernardino, Calif., shooter Syed Farook, saying that it found a third party to unlock the device. However, a law enforcement source told CBS News that investigators have found “nothing of real significance” so far on the terrorist’s iPhone. Federal law enforcement officials have at least a dozen other criminal investigations in which they are trying to get Apple to unlock iPhones. Meanwhile, Congress is getting involved, considering legislation that attempts to balance civil liberties vs. security. One bill, titled the “Compliance With Court Orders Act of 2016,” was written by Sens. Richard Burr, R-N.C., and Dianne Feinstein, D-Calif. In its suit, Microsoft says that it has received 5,624 federal demands for customer information in the past 18 months. Nearly half of those demands (2,576) came with gag orders preventing the company from telling customers that the government was looking at their data. Also, 1,752 of those secrecy orders had no time limit, so it might never be able to tell customers that the government obtained their digital files. Microsoft: Standing Up For Fundamental Rights In a blog post Thursday , Microsoft President and Chief Legal Officer Brad Smith said that the company filed the suit “to stand up for what we believe are our customers’ constitutional and fundamental rights — rights that help protect privacy and promote free expression.” Microsoft believes consumers and businesses have a right to know when the government accesses their emails and records, except in rare cases, Smith said. “Yet it’s becoming routine for the U.S. government to issue orders that require email providers to keep these types of legal demands secret. We believe that this goes too far, and we are asking the courts to address the situation,” Smith said. The secrecy orders violate the Fourth Amendment, which gives people and businesses the right to know if the government searches or seizes their property, Smith said. The federal government is attempting to treat personal property differently in the cloud computing era, Smith said. With paper documents and electronic records stored in home and business computers, the government had to give notice to the owner when it sought a warrant to seize private information. But with email and digital documents stored on remote servers in data centers, government agents often want to keep their snooping secret. “The transition to the cloud does not alter people’s expectations of privacy and should not alter the fundamental constitutional requirement that the government must — with few exceptions — give notice when it searches and seizes private information or communications,” Smith said. The Justice Department could resolve the issue by adopting a new policy that sets reasonable limitations on the use of secrecy orders, he said. Another solution would be for Congress to amend the Electronic Communications Privacy Act to implement reasonable rules, Smith said. Image provided by Shutterstock .

Synaptics Stock Jumps On Report China Group Eyeing Apple Chip Supplier

Shares in Synaptics ( SYNA ), a supplier of touchscreen driver chips for Apple ’s ( AAPL ) iPhone, jumped on reports that it’s in talks to be acquired by a state-backed Chinese investment group. Synaptics stock traded as high as around 91 on Thursday; shares were still up 8% to 88 in the afternoon on the stock market today . Synaptics has an IBD composite rating of 91 out of a possible 99. Aside from making devices for Apple — its chips control iPhone displays — San Jose-based Synaptics supplies touchscreen and biometrics technology to South Korean mobile phone makers Samsung and LG as well as Chinese companies Huawei and Lenovo. It also makes sensors that read fingerprints. According to a Bloomberg report , the state-backed Chinese investment group and Synaptics are still negotiating the sales price, which could value the company at around $110 per share. The Chinese group includes insurance companies and financial institutions, as well as a semiconductor fund backed by Beijing-based BOE Technology, said the Bloomberg report.