|Bid||0.00 x 0|
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|Day's Range||43.20 - 43.20|
|52 Week Range||18.68 - 48.59|
|Beta (5Y Monthly)||N/A|
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(Bloomberg) -- Apple Inc. is grappling with a shortage of vital chips that manage power consumption in iPhones and other devices, people with knowledge of the matter said, complicating its ability to meet holiday demand for the latest version of its marquee gadget.It’s unclear to what extent the bottleneck may limit iPhone availability during its crucial launch quarter, typically Apple’s busiest. Despite the shortfall, suppliers are likely to prioritize Cupertino, California-based Apple and its power-hungry iPhone 12 over other customers lining up for scarce parts, said the people, who asked not to be identified discussing private matters.Increasing demand for silicon across a range of products and supply-chain disruptions from Covid-19 are the main causes of the shortage, according to the people. Main Apple chipmaker Taiwan Semiconductor Manufacturing Co. said in October that 5G smartphones require 30% to 40% more chip content versus 4G. That and uncertainty over the course of the pandemic is spurring customers to cache components for fear of running out, especially after major smartphone maker Huawei Technologies Co. had stocked up massively ahead of a September deadline for U.S. sanctions.The stockpiling compounds lingering issues across a global electronics industry still recovering from rolling lockdowns that snarled transport routes and cut off workers from factories earlier this year. Disruptions are expected to persist over the next two quarters, the people said.Read more: Qualcomm Sees Booming Demand for 5G Phone ChipsPower management is more important in the iPhone 12 than for its predecessors given additional camera features and 5G capabilities, increasing Apple’s need for these components. It recently launched four 5G models and analysts expect strong consumer demand for the devices. During a recent conference call with analysts, Apple Chief Executive Officer Tim Cook warned about supply constraints for the iPhone 12, Mac, iPad and some Apple Watch models -- although he didn’t specifically mention power-management chips.Supply issues for the iPhone are “not a surprise” because Apple has just begun to ramp up production, the CEO said. “It’s hard to predict” how long the supply constraints will last, he added. An Apple spokesman declined to comment.Apple has multiple power-management chip suppliers, according to a recent teardown from iFixit. The iPhone 12 Pro uses a component from Texas Instruments Inc. to control power to the camera system, along with a similar chip from STMicroelectronics NV and one from Qualcomm Inc. for the 5G modem.There’s also a power-management part designed by Apple in this handset. In 2018, Apple acquired technology and other assets from Dialog Semiconductor Plc for $600 million to build its own power-management chips.The disruption to iPhone production comes amid questions over Apple’s ability to galvanize demand for its newest gadget in China, following its worst quarterly revenue performance there since 2014. Investors are concerned the company is losing momentum to homegrown rivals like Huawei and Xiaomi Corp. in one of its most critical markets.In the U.S., a check of Apple’s website shows that new iPhone 12 Pro orders won’t arrive to customers until the end of November or early December, while the regular iPhone 12 isn’t showing any delay. Many iPad models are showing deliveries between mid-November and the end of the month, while some Apple Watch models are showing delivery times in late November.Read more: Amazon and Apple Eye Historic $100 Billion in Holiday Quarter(Updates with TSMC’s remarks on 5G content from the third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Outsourcing company Cognizant Technology Solutions (NASDAQ:CTSH) has spent 2020 on the acquisition trail, looking for cloud service start-ups to replace its old data center business and give CTSH stock a boost. Source: JHVEPhoto / Shutterstock.com Mostly it has been buying companies with links to Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Salesforce (NYSE:CRM). But its latest deal is aimed straight at what I call the Machine Internet. The acquiree is Bright Wolf, a Durham, North Carolina company that automates factories. It connects sensors on machines to wireless networks that then feed decision-making software. Bright Wolf will become the hub of a Cognizant lab dedicated to industrial machine markets in the Research Triangle.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Machine Internet It’s easier to connect factories to the Machine Internet because they have one owner, and because the savings that result are obvious. Not only can sensors tell managers about production volumes and when machines need repair, they can help them figure out changes in production systems. 7 Coronavirus Stocks to Buy for the Second Wave When several factories are connected in this way, it means top management knows precisely what its plants are up to. In addition to factories, Bright Wolf works with larger systems like energy, transport, water and agriculture. Medicine is also a big niche, because hospitals are filled with machines and processes that need optimization. Hospitals also face constant demands to cut costs. So far, most deals are under the radar, with costs undisclosed. The previous big deals in the space this year were Microsoft’s purchase of CyberX, focused on the security of industrial networks, and Dialog Semiconductor’s (OTCMKTS:DLGNF) purchase of Adesto. The idea in all these cases is to create critical mass and expand into medicine and urban planning, where jobs are more public and complex. Cognizant’s Dilemma Cognizant began in 1998 and follows a “global delivery model.” While it’s based in Teaneck, New Jersey most of its employees are in India. While the company grew rapidly in the 2000s, growth has been harder to come by in recent years, especially as the cloud has replaced data centers. Growth in 2019 was just 4%, and the company will be hard pressed to match its 2019 performance this year. For the September quarter, Cognizant reported earnings of $348 million, 64 cents per share, on revenues of $4.2 billion. Revenues were flat, but earnings were down from 90 cents a year earlier. Operating margins narrowed from 17.3% to 15.9%. What Cognizant calls its “digital business,” mainly cloud, artificial intelligence and the Machine Internet, was up 42%. Cognizant is not a big government contractor, but this summer it hired former General Services Administration official Anile Cheriyan, who will report directly to CEO Brian Humphries. The shares only recently regained their pre-pandemic highs. This isn’t just due to the pandemic, but a series of internal problems. These included an embarrassing “ransomware” attack targeting the company’s corporate credit cards. The company has also dealt with a bribery scandal in India aimed at loosening labor regulations. It also had to pay $52 million to former employees over its past work as a content moderator for Facebook (NASDAQ:FB). The Bottom Line on CTSH Stock Companies like Cognizant know where the money is going. It’s going to the cloud and it’s going to cloud applications. The Machine Internet is, for the most part, a cloud application. What Cognizant is doing is what growth investors should be doing, seeking out new opportunities before they ripen. Cognizant’s purchase of Bright Wolf shows that the Machine Internet is one of those opportunities. Cognizant itself has yet to feel renewed love from analysts, with a slight majority having it on their buy lists, and one shouting sell. It’s a stock you can wait for, but as the Machine Internet ripens it should, too. At the time of publication, Dana Blankenhorn had long positions in AMZN and MSFT. Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, essays on technology available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company Daily Picks: Stocks to Buy Ahead of the Election The post Cognizant Looks For Opportunties in the Machine Internet appeared first on InvestorPlace.
Dialog Semiconductor stock reversed earlier gains on Wednesday, despite the German chip maker raising its revenue outlook, citing strong demand for headphones, fitness trackers, and smartwatches.