Despite being one of the largest firms in the smartphone SoC market, Qualcomm has been seen some trouble recently. Just a few months ago, the firm had considered splitting into separate licencing and manufacturing segments. While that idea silently died a quickly deserved death, it seems like Wall Street still isn’t too happy with the firm’s performance. According to Market Realist, some Wall Street analysts are suggesting that the best course of action would be a merger with Intel, and failing that, one with AMD.
Qualcomm’s troubles stem from a lack of brand recognition and the market failure of the Snapdragon 810. Due to this, the company has seen it’s profits and revenue fall significantly. A merger with Intel would fix some of the problems. First of all, Qualcomm would be able to get access to Intel’s first class fabs. Secondly, Intel brings along its data centre and enterprise connections, a highly lucrative market. For Intel, Qualcomm would provide in-roads into the mobile market, an area Intel ahs had trouble breaking into. Qualcomm would also ensure that Intel is making best use of their expensive fabs.
Unfortunately for Wall Street though, a merger is highly unlikely. First of all, the merger would bring a hoard of anti-trust issues, it being one of the largest tech mergers ever and bringing together the dominant players of their respective markets. The fundamental nature of the struggle of ARM vs x86 also stands in the way, meaning the merged firm would likely have to keep both, negating any benefits of moving into new markets. The ARM side would be stuck in mobile as that is what most customers are using while the desktop/enterprise will continue to use x86 as they are used to that as well. The synergies on paper simply don’t play out in real life.
The only sensible merger would be with AMD, though that would be more of acquisition of the ailing red team. Qualcomm does have enough cash to settle AMD’s debts and give a cash boost but it probably wouldn’t be good for a struggling firm to start throwing money around right about now. AMD does bring the desktop and data centre/enterprise experience though AMD’s marketshare is pretty poor right now. However, the downsides of the ARM/x86 struggle and lack of fabs still remain problems. It remains to be seen if this remains a crazy Wall Street thought exercise or will it actually end up happening.
Apple has earned $202 billion in cash alone – more than any other company – but the tech giant has taken a huge hit on Wall Street. Despite crossing the $200 billion in cash mark for the first time, shares in Apple dipped by as much as 10% this week following a worse-than-expected projection for the latest quarter of 2015. A mixed period has seen iPhone sales down, while growth in China has doubled, and Apple Watch sales are as-of-yet undisclosed.
Apple’s cash haul compares favourably to its closest market rival; Google – producer of the Android mobile operating system – earned $62 billion in cash and marketable securities during the last quarter. Apple’s $202 billion in cash, though, carries some risks. Two Apple shareholders in particular – Carl Icahn and David Einhorn – have been pushing the company to reduce its cash hoard, wanting it to convert it instead into assets. The US taxman is also side-eying Apple’s piggybank, since $158 billion of it is banked overseas, and so out of its jurisdiction.
Despite the promising news of Apple’s growth in China, the country has been hit recently by a financial crisis, with fears that its stock market crash could have a knock-on effect on the company’s trading there. “We remain extremely bullish on China, and we continue to invest. Nothing that has happened has changed our fundamental view that China will be Apple’s largest market at some point in the future,” Apple CEO Tim Cook said. “We are not changing anything. We have our pedal to the metal.”
Thank you Mashable for providing us with this information.
Snoop Dog for Twitter’s next CEO? That’s the latest story that got our attention roaming around Twitter. We’ve seen a lot of supporters for his campaign using the hashtag ‘#ifSnoopWasTwitterCEO’ and it even got the attention of actor Orlando Jones, who also supports Snoop’s campaign.
It has been reported that the actual CEO of Twitter, Dick Costolo, is stepping down as CEO. Jack Dorsey is going to be appointed Interim CEO as of the 1st of July and the company is now looking for a suitable CEO. But why Snoop Dog as the next Twitter CEO? Well, TechCrunch has a good idea here.
Costolo helped Twitter go from a net value of $3 billion to $26 billion and from 30 million active users to 250 million. He basically shaped the company in the social media giant it is today. Compare that to Snoop’s success and you get the same pattern.
Snoop Dog has always followed the same business strategy found in big tech companies today. He defied what others were saying (like companies defy Wall Street), he knew who his real friends were and most importantly, he knows that winning is not the most important thing for success. This is why the old saying ‘if it’s not broken, don’t try to fix it’ does not apply to both Snoop and tech companies.
The same success as Twitter had can be seen in Snoop’s personal life too. His 20 years of success in music, movies and business add a lot of potential and credibility, so we won’t really rule out the actual possibility of him ending up on the CEO chair. But what are your opinions on this story? Would you like to see Snoop Dog as the next Twitter CEO? Give us your opinion in the comments below.
Apple is set to break their all-time record for market capitalisation.
Apple’s stock hit the $111.25 mark at the closing bell on Wednesday, with total market cap at $652 billion, edging closely to its September 2012 record of $658 billion. Apple’s crazy stock price went on a seemingly unstoppable climb in the years preceding the tragic death of it’s co-founder and CEO Steve Jobs in October 2011.
Uncertainty over Tim Cook’s leadership and Apple’s ability to produce new products lead to the fluctuation of the stock price in the years since, but the unparralled success of the iPhone 6 and 6 Plus in September, with sales reaching 39 million units, has evidently restored investors faith in the company. Chances are by the time you’re reading this, the record has already been broken.