I hear you were the high bidder of Monica’s stained blue dress at Christie’s auction. Hope it fits well and that you don’t mind the small blemish … JD
Ericsson Climbs on Report of Staff Cuts of Up to 20 Percent
Bloomberg, June 15, 2016
“Ericsson AB rose the most in almost a year after newspaper Svenska Dagbladet reported that the Swedish maker of mobile-phone networks plans to cut as many as 25,000 employees, or about 20 percent of its workforce, amid cutthroat competition and shrinking sales.”
I guess the cost of jet fuel went up … JD
Hans Vestberg, chief executive officer of Ericsson since 2010, has faced questions over his use of a corporate jet to travel to sports events and his appointment as chair of Sweden’s Olympic Committee (SOC) when Ericsson is trying to cut costs and rethink its strategy.
Han Vestberg has said his trips were with clients and not in breach of Ericsson policy and that the SOC role would not distract him from his job as chief of Sweden’s largest exporter.
SvD said the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) are investigating Ericsson, whose shares are listed in Stockholm as well as on Nasdaq.
DOJ declined to comment on the case, and SEC spokespeople did not immediately return a request for comment outside regular business hours.
Findings of corruption by U.S. authorities may result in hefty fines for companies under the Foreign Corrupt Practices Act.
In February, mobile operator Vimpelcom agreed to pay $795 million to settle U.S. and Dutch investigations into a bribery scheme in Uzbekistan. Roughly half of that amount was to U.S. authorities. However, other penalties imposed on companies have been relatively modest.
Hans Vestberg is currently in the process of revamping the telecom network maker with a slew of new appointment, to take on the combined Nokia and Alcatel-Lucent unit and Huawei.
Telecom Lead, June 17, 2016
Telecom network maker Ericsson said on Friday that the company is facing a probe by the US authorities over an alleged corruption charge.
Ericsson said it was co-operating with U.S. authorities in an inquiry over possible corruption dating back three years.
“We will not provide any detailed comments on the request as such, but can say that it relates to Ericsson’s anti-corruption program and questions related to the Foreign Corrupt Practices Act. Ericsson cooperates with US Authorities and works diligently to answer the questions,” said Ericsson in a statement.
A Reuters report said Ericsson CEO Hans Vestberg, who could not retain its revenue and profit growth in recent quarters, will be under pressure due to the alleged corruption charges.
The Swedish telecoms equipment maker has been under fire in local media who have questioned the pay and leadership of CEO Hans Vestberg after weak results in April which sent Ericsson shares down by 15 percent in one day.
Ericsson issued a statement on Friday after Swedish daily Svenska Dagbladet (SvD) reported that the company was being investigated over possible corruption in its China business.
Ericsson said it had initially received questions from U.S. authorities in March 2013, adding this had been reported by media at the time.
“Ericsson cooperates with U.S. Authorities to answer these and additional questions,” said Ericsson in a statement.
Media reports at the time said U.S. authorities were investigating Ericsson’s business practices in Romania.
To be continued ...
Little Sammy Whammy … I see that you are using your aliases in an attempt to destroy this board as you did with the ALU board. Why don’t you look in the mirror, see the distorted reflection, and then exit stage right … JD
While some advocates tout the ability of software defined networking to reduce telco capital and operational expenditures, at least one major carrier expects SDN economics to have little impact on capex.
Verizon capex consistently runs in the range of 17.2% to 17.7%, noted Verizon Executive Vice President and Chief Financial Officer Fran Shammo today. (Traditionally capex is expressed as a percentage of revenue.) And although Verizon is adopting SDN, Shammo doesn’t expect SDN economics to impact that percentage…
“A lot of people have been talking about how capex is going to come down with SDN and I’ve said, ‘No, it’s going to stay the same for Verizon,’” said Shammo regarding SDN economics. “And the reason I say that is if you look at what we’ve done over the past two years, you see wireline starting to decrease and you see wireless increasing.”
Shammo also noted that “you’ve seen a shift within the wireless portfolio.” The majority of Verizon’s wireless capex is now going toward densification, Shammo said. Densification is the term increasingly used in the wireless industry in reference to adding small cells to increase network capacity in high traffic areas. It’s also an important building block for 5G wireless, which will provide greater bandwidth than today’s 4G networks but which will require using high-frequency spectrum that has considerably shorter range than 4G …
Wireless network densification could have spillover benefits for the landline side of Verizon’s business, Shammo said. He noted, for example, that the company was able to justify the recently announced expansion of its FiOS fiber-to-the-home (FTTH) offering into Boston because the fiber needed to support the small cells could also support FiOS…
Shammo’s remarks about the synergies between small cells and FTTH echo similar comments made last week by an AT&T executive.
Sir 2020 … In the U.S. it is not against the law to include in internet posts a reference that supports the material in the post … JD
Matey Booboo … It looks like sam.deanj and his horde of aliases are trying to destroy this board like they did on the ALU board. I was wondering, by chance do you still have a rope that you could use to hang Little Sammy to the yardarm … JD
High Demand For Feature Phone, Low Price Smartphones In Emerging Economies
While Nokia faces stiff competition from players such as Apple and Samsung in the smart phone space, it can capture a significant share in the feature phone market. While the feature phone market is declining, it still represents a significant portion of the total mobile phone market in emerging economies. In India, 144 million feature phones were shipped in 2015, a 17% decline from the 180 million figure for 2014, but still representing a significant portion of the total mobile phone market of nearly 240 million units in 2015. There is also a high demand for low priced smartphones in the region, a market where HMD an establish itself with Nokia-branded devices. Given, Nokia’s former popularity in the feature phone market (especially in India), HMD has a huge growth potential in this region in its second innings. Strong royalty revenue growth for Nokia could result.
Nokia appears to have got the mobile phone business model right this time with this arms-length arrangement via HMD. Whether the company’s former brand popularity will drive sales in the second innings remains to be seen. The smartphone market has evolved in the recent years with innovation being the key driver for sales. Competitors are far ahead of what Nokia can derive via this arrangement with HMD. Android powered phones will work to its advantage but capturing a decent share in the smartphone market might be a tough ask for the alliance, unless it is able to quickly catch up on innovations and get ahead of competition in this space.
Licensing Model Can Work In Nokia’s Favour
Under its agreement with the newly formed company HMD, Nokia will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights and it will provide HMD with branding rights and patent licences. HMD will be responsible for the “heavy lifting” which will include the hardware and manufacturing aspects. HMD will leverage Nokia’s branding and intellectual know how, which works well with Nokia’s licensing business model. Manufacturing was not a strong point for Nokia in the past and this arrangement should work in the company’s favour.
According to our estimates, the licensing segment accounts for nearly 40% of Nokia’s valuation and we expect its licensing revenues to increase from $1.08 billion in 2016 to nearly $1.5 billion by the end of our forecast period.
If the company’s mobile phone segment picks up and licensing revenues increase at a faster pace reaching $2 billion by the end of our forecast period, there can be a 10% upside to our price estimate. COMMENT: Their PT is $8.04.
To be continued …
May 23rd, 2016 by Trefis Team
Recently, Nokia (NYSE:NOK) announced that it had signed a strategic agreement with a newly formed Finland based company called HMD to create Nokia- branded mobile phones and tablets for the next ten years. HMD has been founded to provide a focused, independent home for a full range of Nokia branded feature phones, smartphones and tablets. Nokia had sold its mobile phone business to Microsoft in 2014 and HMD will now acquire the right to use the Nokia brand on feature phones and certain related design rights from Microsoft. It also intends to invest over $500 million in the next three years to support the global marketing of Nokia branded mobile phones and tablets. While Nokia was once a best-selling mobile company, it could not keep up with changing consumer demands and was unable to establish itself in the smartphone market. Mircosoft failed to adeuately monetize this business as well, as the iOS-Android jaugernaut conintued. Now, via HMD, Nokia-branded feature- and smart phones will reenter the market, targeting secondary, lagging markets beyond those addressed by top-tier vendors such as Apple and Samsung.
To be continued …
Why you should care that Google dodged Oracle's $9 billion bullet
A federal jury in California handed down a verdict Thursday about an aspect of software development that most of us will never see firsthand but that still affects our digital lives.
That jury’s decision means Google owes Oracle none of the $9.3 billion it demanded for the non-existent offense of duplicating the functions of Oracle’s Java software in the code of its Android operating system.
Oracle (ORCL) threw an army of lawyers into this quest to punish Google (GOOG) for a common coding practice that pretty much everybody else in computing accepts as legal and fair: re-implementing features built into one piece of software to allow other programs to work with it.
This isn’t just a win for Google: Had this case gone the other way, it would have made a vast expanse of software development a permission-first environment. Now, coders don’t have to ask permission ... but they may still need to seek forgiveness, because the jury’s verdict doesn’t offset how far off the rails this case has gone in six years.
In its lawsuit Oracle claimed Google violated copyright law by re-implementing Application Programming Interfaces, or APIs. These are frameworks that allow one program to perform a task for another. For example, when I run Chrome on my Mac, Google’s browser “calls on” Mac APIs for things like saving my settings or displaying a dialog box.
Here’s a simpler way to think about this: If a program is a Lego block, the API performs the function of the bumps on the block that let other Legos click on to it…
API's shouldn't be copyrightable. Copyright protects specific lines of code but not the functions they provide — in the same way you can copyright the “substantial literary expression” of a recipe but not the substance of its instructions.
A federal jury has sided with Google in a long-running legal battle with tech industry rival Oracle, which had claimed Google stole some of its software to create Android, the world's most popular smartphone operating system
A federal jury found Thursday that Google didn't need permission to use a rival's programming tools as it built Android — now the world's leading smartphone operating software and a key part of Google's multi-billion dollar Internet business.
Software competitor Oracle claimed Google had stolen its intellectual property and reaped huge profits by copying pieces of an Oracle programming language called Java. But the jury in U.S. District Court found that Google made "fair use," under copyright law, of Java elements that help different software programs work together. Oracle, which had sought $9 billion in damages, immediately said it would appeal.
Google argued that because it used only a small part of Java to create Android, a much larger system of software built for a new purpose, it qualified for a "fair use" exemption from copyright. Similar exemptions allow artists and critics to quote or reuse small portions of someone else's work in a larger essay or creation.
Oracle and its allies simply argued that the company should be paid for the use of its code. While Google lets smartphone manufacturers use Android software without charge, it makes billions of dollars by showing advertising to people who use Google services, including its popular search engine and maps, on Android phones and tablets….
The jury's verdict marks Google's second victory in the case. U.S. Judge William Alsup sided with Google in 2012, ruling that the APIs weren't protected by copyright. An appellate court overturned Alsup's ruling and sent the case back for a second trial.
Oracle said it will appeal the latest verdict on "numerous grounds."
Zolmax May 26th, 2016
Deutsche Bank set a Euro 6.20 ($6.97) price target on Nokia Corporation (HEL:NOKIA) in a research note released on Friday. The brokerage currently has a buy rating on the stock.
A number of other research firms also recently issued reports on NOKIA. JPMorgan Chase & Co. set a €7.00 ($7.87) price target on Nokia Corporation and gave the company a buy rating in a research report on Monday, May 9th. Kepler Capital Markets set a €8.20 ($9.21) price target on Nokia Corporation and gave the company a buy rating in a research report on Wednesday, March 16th. Credit Suisse set a €8.20 ($9.21) price target on Nokia Corporation and gave the company a buy rating in a research report on Friday, February 12th.
Goldman Sachs set a €6.50 ($7.30) price target on Nokia Corporation and gave the company a neutral rating in a research report on Wednesday, March 9th. Finally, BNP Paribas set a €7.80 ($8.76) price target on Nokia Corporation and gave the company a buy rating in a research report on Friday, February 12th. Two research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. Nokia Corporation presently has a consensus rating of Buy and a consensus price target of €6.57 ($7.38).
Motley Fool, 5/25/2016
Graphics chip company NVIDIA (NASDAQ:NVDA) has had great success selling its products to enterprise customers. During NVIDIA's latest quarter, the company's data center segment generated $143 million of revenue, up 63% year over year. GPUs are far more efficient than CPUs for certain tasks, leading all of the major cloud computing companies to adopt NVIDIA's products.
Deep learning, where software is trained with data to perform a certain task, like image recognition or natural language analysis, is one application where graphics cards perform well. Alphabet's (NASDAQ:GOOG)(NASDAQ:GOOGL) Google, Microsoft, Amazon, and IBM are all actively employing deep learning, and NVIDIA's Tesla graphics cards are being used to accelerate the process.
While NVIDIA has been successful so far, a recent announcement from Google could create a major problem for NVIDIA's data center business going forward.
At Google's recent I/O conference, the company announced it had developed a custom processor designed specifically for deep learning tasks. The Tensor Processing Unit, or TPU, is an application-specific-integrated-circuit designed to accelerate Google's TensorFlow machine learning software. Google has been running TPUs in its data centers for more than a year, and the company has found that these processors provide an order-of-magnitude improvement in performance per watt. The company boasted that its TPUs effectively push chip technology seven years into the future....
AlphaGo, Google's computer program that beat a professional Go player earlier this year, was also powered by TPUs.Google's computer program that that beat a professional Go player earlier this year, was also powered by TPUs.