76.85 +0.55 (0.72%)
Pre-Market: 8:48AM EDT
|Bid||76.36 x 2900|
|Ask||77.74 x 1400|
|Day's Range||76.29 - 77.37|
|52 Week Range||49.10 - 90.34|
|Beta (3Y Monthly)||1.53|
|PE Ratio (TTM)||27.93|
|Earnings Date||Nov 6, 2019|
|Forward Dividend & Yield||2.48 (3.34%)|
|1y Target Est||79.35|
Throughout 2019, the Technology sector has been flying high as the top performing sector. Heading into Q4, Technology companies and investors alike have begun to show concerns over the macro environment, and that’s arguably starting to show up in the sector’s performance. Plus, they’re paying close attention to the US-China trade front where the market tends to swing on emotions day to day, with one headline bringing us up and another taking us down.
Shares of global chip giant Qualcomm (NASDAQ:QCOM) have been climbing ever since the company "won" a multi-year litigation struggle with smartphone giant Apple (NASDAQ:AAPL). As part of the companies' settlement, Apple agreed to pay Qualcomm a great deal of royalty fees, and Apple agreed to resume buying Qualcomm's chips for the next several years.Source: Akshdeep Kaur Raked / Shutterstock.com Ever since that landmark "win" for Qualcomm, QCOM stock has been a big winner. Qualcomm stock is up 35% in 2019, despite weak demand for semiconductors.Now QCOM stock has another catalyst on the horizon: the U.S.-China trade deal.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe trade war is one of the reasons for the weakness. While the direct impact of the trade war on semiconductor demand has not been that intense, the indirect effects of the conflict have had major ramifications on the sector. * 7 A-Rated Stocks to Buy for the Rest of 2019 Business leaders have been concerned about the rising geopolitical risks and lack of certainty created by the trade conflict. Amid this uncertainty, business confidence is falling, and businesses' capital spending has declined. The semiconductor industry is greatly affected by corporate capital spending, so when such spending drops, the whole semi sector struggles.But trade tensions are easing. The U.S. and China say they have made a deal in principle to resolve some of the issues between them. That will inject certainty into these uncertain times. Business confidence will rebound. Capital spending will rise. Global demand for chips will climb, and there will be a rising tide that will lift all boats, including QCOM stock.As a result, investors should buy Qualcomm stock as trade tensions ease. The U.S.-China Trade DealThe trade deal could have huge implications. Above all else, it will inject certainty into these uncertain times. That injection of certainty will lift business confidence, which has been deteriorating for the past 20 months. As business confidence zooms higher, capital spending - which has similarly been slowing - will also bounce back. A large amount of that spending will be used to buy semiconductor chips. So semiconductor revenue should get a lift from the trade deal.Qualcomm is one of the biggest players in the global semi industry. If that industry surges higher in 2020 because of easing trade tensions, Qualcomm's growth will naturally accelerate, too, lifting QCOM stock. Qualcomm Stock Has Multiple CatalystsThe good thing about QCOM stock is that, while easing trade tensions could be a big catalyst, the stock doesn't need easing trade tensions to head higher.That's because QCOM has multiple other catalysts which should keep QCOM stock on a winning path for the foreseeable future.First and foremost, the 5G boom coming in 2020 and 2021 should increase demand for Qualcomm's 5G chips. Second, a Qualcomm-powered 5G iPhone will also be a strong positive catalyst for QCOM stock.Between those two catalysts, Qualcomm has more than enough firepower to generate rapid revenue and profit growth over the next two to three years. That strong revenue and profit growth - coupled with the undemanding 18-times forward price-earnings multiple of Qualcomm stock - should lead to strong gains by Qualcomm stock over the next few years. The Bottom Line on QCOM StockQCOM stock looks good now. Easing trade tensions, the forthcoming 5G boom, and higher Apple revenue are in its pipeline. Those three major developments should help boost its revenue and profit growth over the next two to three years,. As a result, QCOM stock should keep winning for the foreseeable future.As of this writing, Luke Lango was long QCOM. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Buy Qualcomm Stock as Trade Tensions Ease appeared first on InvestorPlace.
[Editor's note: This story was previously published in June 2019. It has since been updated and republished.]Augmented reality is quietly growing quickly. According to a report released last year, AR was worth $350 million in 2018, and its value is expected to surge at a compound annual growth rate of around 150% from 2019-2024. Among the areas in which AR is expected to be used in the near-future are social media, mobile devices, virtual conference calls, and automotive devices. * 7 A-Rated Stocks to Buy for the Rest of 2019 Here's a run-down of nine names investors will want to keep an eye on as the harbingers of the (fruitful and rapidly approaching) AR era.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Vuzix Corp (VUZI)Source: Shutterstock Although the project was actively pursued by Alphabet (NASDAQ:GOOGL) afterward, the first go-around for Google Glass was pretty much a flop. The idea of projecting information onto glass a user/wearer is looking through, however, never really went away. It just has far more applications as an industrial or commercial tool than it does for a consumer.Enter Vuzix Corp (NASDAQ:VUZI). You may know it as the company that developed an apparatus that helps blind people get around better. But products like its M300 and Blade smart glasses were "built for enterprise." The company has quietly made a compelling case for using them as a means of getting more done in the workplace at a reasonable price… for a corporation. QUALCOMM (QCOM)Source: Michael Vi / Shutterstock.com Yes, it's best known as a telecom and semiconductor play and not often lumped in with a list of AR stocks. But, QUALCOMM, Inc. (NASDAQ:QCOM) is very well-positioned to capitalize on the mainstreaming of augmented reality.It's gone relatively unrealized (or at least unappreciated), but AR requires the delivery of massive amounts of data, and it requires plenty of computing power to deliver that information in real-time. AR glasses and goggles also burn through batteries relatively quickly. * 7 A-Rated Stocks to Buy for the Rest of 2019 QUALCOMM as addressing all three needs, announcing in 2018 that it would be developing a chipset specifically for AR and VR applications. This turn-key solution will make it easier for other developers to bring new glasses to the marketplace. Lumentum (LITE)If the name Lumentum (NASDAQ:LITE) rings a bell, there's a reason. It's a stock that was thrust into the spotlight in the latter part of 2017 when Apple CEO Tim Cook began talking up augmented reality's prospects.Though he didn't explicitly say at the time how (or even if) Apple would aim at the AR market, nor did he mention Lumentum by name, the potentially-bullish connection makes a lot of sense. Lumentum makes the kind of 3D sensor lasers that can turn a smartphone into something of a radar -- an important piece of the augmented reality movement. Apple (AAPL)Source: View Apart / Shutterstock.com Speaking of Apple(NASDAQ:AAPL), it, too, is a name to keep in mind if you believe augmented reality is a serious opportunity.Yes, its smartphones are powerful computers that seem to become more powerful with each iteration. That's not why the company is such an interesting AR prospect though. Rather, Apple is reportedly developing its own augmented reality headset, a la Google Glass. * 10 Companies Using AI to Grow The device likely wouldn't launch until 2021, according to Loup Ventures' Gene Munster. But the market rewards potential about as much as it does real results, so it's something that could begin to positively impact the stocks soon and continue as the presumed launch date nears. Immersion Corporation (IMMR)Source: Immersion.com Immersion Corporation (NASDAQ:IMMR) has earned a spot on a list of noteworthy AR stocks to watch with its TouchSense(r) Force technology that makes displays screens a tactile, haptic experience. It's been particularly impressive in the VR gaming world, but the possibilities are just now starting to be realized in full. Axon Enterprise (AAXN)Source: Shutterstock Axon Enterprise Inc (NASDAQ:AAXN) isn't an augmented reality play… yet. But, it appears it soon will be. In 2018, the maker of TASERs and body-worn cameras suggested AR and VR would be its next frontier.It's not entirely clear what this might mean. But, given the nature of its target markets -- law enforcement and military personnel -- it's reasonably safe to assume the company is mulling ways to better protect and equip people that wear a uniform -- and a gun -- to work. * 7 A-Rated Stocks to Buy for the Rest of 2019 A marketable product is still years away, but like any other company, the market is likely to reward progress en route to results. Microsoft Corporation (MSFT)Source: gguy / Shutterstock.com Don't get the wrong idea. Productivity software, the cloud and operating systems are still the company's break and butter, and will be for a long, long time. Microsoft Corporation (NASDAQ:MSFT) is wading into augmented reality waters, though, quickly enough that it just might make a modest impact on the stock's value.How so? The HoloLens. It's arguably the most market-ready, and marketable, AR/VR headset available today, even if interest has been tepid thus far.In May 2018, the software giant demonstrated two practical apps that make good use of the hardware: Layou, and Remote Assist. Layout allows for structural designing beyond mere blueprints, while Remote Assist shares what you see with people who aren't on-site.It may be just the 'aha' app that convinces companies they can't live without the HoloLens. Microvision (MVIS)Source: Microvision For the record, Microvision, Inc. (NASDAQ:MVIS) and Microsoft are two different companies. The aforementioned Microsoft is the maker of the HoloLens, which may be on the verge of becoming a must-have. Microvision's role in the augmented reality movement, however, it a little bit different. It's the maker of laser (and the supporting technologies) that can project images and data into glass.The most practical and tangible use of its PicoP(r) technology is the projection of the information normally found on a car's dashboard up to the windshield, allowing a driver to keep his or her eyes on the road. It's the same basic concept being used by Google Glass, Microsoft's HoloLens and the like though -- melding the benefits of a transparent material with valuable information overlaid. NVIDIA (NVDA)Source: Hairem / Shutterstock.com Last but not least, it may be a tad obvious, but add NVIDIA Corporation (NASDAQ:NVDA) to your list of AR stocks to keep tabs on.NVIDIA has already proven itself capable of handling the big visual data loads associated with virtual reality; making augmented reality even better is proving relatively easily by comparison.One area it's making that happen is on the automotive front. Like Microvision, NVIDIA is working on improving the driving experience by melding AR with artificial intelligence. That's only a taste of what's to come though. While other companies are still perfecting their first-generation augmented reality hardware, NVIDIA is already thinking about the next generation of AR technologies. Two improvements on NVIDIA's radar are varifocal displays, which improve clarity of an object for a user, and the integration of tactile/haptic information with visually-augmented reality.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post 9 Augmented Reality Stocks to Buy appeared first on InvestorPlace.
Is QUALCOMM Incorporated (NASDAQ:QCOM) a good bet right now? We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of […]
Keysight's (KEYS) sustained focus on launching solutions for growth markets like 5G, IoT and high-speed datacenters augurs well for the top line.
The recent stock market slump continued, as concerns over the outcome of U.S.-China trade talks slated for this week weighed heavily on share prices.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The Trump administration placed eight Chinese technology giants on a U.S. blacklist on Monday, accusing them of being implicated in human rights violations against Muslim minorities in the country’s far-western region of Xinjiang.The companies include two video surveillance companies -- Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. -- that by some accounts control as much as a third of the global market for video surveillance and have cameras all over the world. Also targeted were SenseTime Group Ltd. -- the world’s most valuable artificial intelligence startup -- and fellow AI giant Megvii Technology Ltd., which is said to be aiming to raise up to $1 billion in a Hong Kong initial public offering. Backed by Chinese e-commerce giant Alibaba Group Holding Ltd., the pair are at the forefront of China’s ambition to dominate AI in coming years.The move, which was announced after U.S. markets closed, came on the same day negotiators from the U.S. and China began working-level preparations for high-level talks due to begin Thursday in Washington. Entities on the list are prohibited from doing business with American companies without being granted a U.S. government license, though some have maintained relationships with banned companies through international subsidiaries. Hikvision and Dahua were suspended from trading Tuesday but iFlytek Co., one of the eight singled out, slid as much as 3.1% in Shenzhen.“Specifically, these entities have been implicated in human rights violations and abuses in the implementation of China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups” in Xinjiang, the U.S. Commerce Department said in a federal register notice published Monday.The move, first reported by Reuters, takes President Donald Trump’s economic war against China in a new direction, marking the first time his administration has cited human rights as a reason for action. Past moves to blacklist companies such as Huawei Technologies Co. have been taken on national security grounds. The president’s tariff war against Beijing, meanwhile, has been fought over issues such as intellectual property theft and control of technology as well as China’s broader industrial policy.SenseTime, Dahua and Megvii weren’t immediately available for comment outside of normal business hours. China’s Ministry of Commerce didn’t immediately respond to a faxed request for comment.“Hikvision strongly opposes today’s decision by the U.S. government and it will hamper efforts by global companies to improve human rights around the world,” the company said in a statement. “Punishing Hikvision, despite these engagements, will deter global companies from communicating with the U.S. government, hurt Hikvision’s U.S. businesses partners and negatively impact the U.S. economy.”It also comes as Trump faces growing pressure at home to support pro-democracy protests in the Chinese-controlled territory of Hong Kong. On Monday, Trump said he was hoping for a “humane solution” in a city where protests have grown increasingly violent.“They even have signs, ‘Make China Great Again,’ ‘Make Hong Kong Great Again,’” he told reporters. “They have tremendous signage.”None of the other companies had immediate comment. Some of the firms added to the list trade on Chinese exchanges, which weren’t open yet when the announcement was made in the U.S.What Our Economists Say:“With growth fading, the U.S. and China could both use at least a reprieve from trade tensions. A mini-deal was mooted. It now looks less likely.”\--Bloomberg Economics Chief Economist Tom OrlikRead the full analysis hereThe news broke just as Trump was attending the signing of a partial trade agreement with Japan and predicting a big week of talks with China.“We think there’s a chance that we could do something very substantial,” he told reporters of the China talks. “I think they’re coming to make a deal, we’ll see whether or not a deal can be made.”A Commerce Department spokesman said “today’s action is unrelated to the trade negotiations.”Besides Hikvision and Dahua, the companies put on the blacklist include artificial intelligence companies iFlytek, Megvii, SenseTime and Yitu Technologies.Also included are Xiamen Meiya Pico Information Co. Ltd, which bills itself as an “expert in digital forensics and cybersecurity in China,” according to its website, and Shanghai-based Yixin Science and Technology, a supplier of micro and nano fabrication equipment.IPO PlansThe ban complicates a planned initial public offering for Megvii. The company filed in August to go public in Hong Kong. The terms and timing of a listing weren’t disclosed, but people familiar with the company’s plans have said it’s seeking to raise as much as $1 billion. SenseTime lists Nvidia Corp. and Qualcomm Inc. among more than 700 global partners. Nvidia declined to comment, and Qualcomm didn’t immediately have a comment.Four of the eight companies put on the blacklist are already publicly traded in China. Dahua’s shares have risen 17% in the past year, while Hikvision is up 12.4%. iFlytek has gained 11.5% and Xiamen Meiya Pico Information has climbed 7.9%.When Huawei became the most prominent target for Trump administration export restrictions, its U.S. suppliers initially cut off contact with the Chinese technology company. After looking at the rules more closely, companies such as Intel Corp., Micron Technology Inc. and Qualcomm resumed at least partial supply.Human RightsThey have subsequently argued in Washington that blanket bans don’t have the targeted effect that the entity listings are intended to achieve because many of the products they supply to Chinese companies are readily available from their overseas competitors.A request for comment from the Chinese embassy in Washington wasn’t immediately returned.The move targets Chinese surveillance companies involved in the crackdown in Xinjiang, where as many as a million Uighur Muslims have been placed in mass detention camps, prompting criticism from around the world.“The U.S. government and Department of Commerce cannot and will not tolerate the brutal suppression of ethnic minorities within China,” said Secretary of Commerce Wilbur Ross said in a statement on Monday. “This action will ensure that our technologies, fostered in an environment of individual liberty and free enterprise, are not used to repress defenseless minority populations.”The blacklisting of these firms has been long in the making and national security advisers for months have been pushing for the president to move forward on the plan. But the timing is highly provocative, coming just days before China’s Vice Premier Liu He is schedule to arrive in Washington for high-stakes trade talks being watched by financial markets around the world.The White House in May had readied the sanctions package for surveillance technology companies accused of human rights violations but decided to hold back because of the ongoing trade negotiations.The Trump administration in June again considered the sanctions and had planned to roll them out with a human rights speech by Vice President Mike Pence on the anniversary of the Tiananmen Square massacre, Bloomberg has reported. The speech was postponed indefinitely -- at the request of Chinese officials -- so that Trump could secure a meeting with Chinese leader Xi Jinping at the Group of 20 summit in Osaka.Also to be placed on the Commerce Department’s “entity list” are the Xinjiang region’s public security bureau and 18 other municipal and county public security bureaus as well as the province’s police college.(Updates with share action from the third paragraph.)\--With assistance from Jennifer A. Dlouhy, Justin Sink, Ian King, Candy Cheng, Michael Hytha, Mark Milian, Edwin Chan and James Mayger.To contact the reporters on this story: Shawn Donnan in Washington at email@example.com;Jenny Leonard in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Margaret Collins at email@example.com, Sarah McGregor, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A New York judge has ordered that President Trump can't force his accountant not to provide his tax and financial information to New York prosecutors.
Keysight's (KEYS) sustained focus on launching solutions for growth markets like 5G, IoT and high-speed datacenters augurs well for the top line.
Microsoft (NASDAQ:MSFT) held a big Surface event earlier this week, unveiling the latest generation of its computer hardware. As you would expect, Intel (NASDAQ:INTC) got some air time with its 10th-generation Core chips. Microsoft even showed off a hinged tablet coming in 2020 that features the all-new Intel Lakefield processors. But… The most exciting products at the Surface event ditched Intel altogether and instead, Microsoft put competitors Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM) in the spotlight.Source: JHVEPhoto / Shutterstock.com Having competing processors in the most buzz-worthy new Microsoft Surface products sent a big message about the challenges facing INTC, helping send Intel stock down 2.7% on the day.Microsoft announced refreshed versions of many of its Surface laptops and 2-in-1 tablets on Wednesday. The Surface Pro 7 and Surface Laptop 3 get an upgrade this year to 10th-generation Intel Core processors. The all-new Surface Neo -- a dual-screen tablet with a hinge and detachable keyboard -- was unveiled for the first time. This featured the new INTC Lakefield processor, 10nm chips with a new 3D architecture that's designed to deliver the combination of power, efficiency and battery life needed by mobile devices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLakefield is a big part of Intel's future and its success is going to have a big impact on INTC stock. Having the Lakefield processor showcased with the new Microsoft Surface Neo tablet is a big deal. Looking Beyond the SurfaceAs cool as the Surface Neo is, the device has been rumored for years and people were half expecting it. What they weren't expecting was the Surface Duo. Looking like a tiny version of the Neo, it's actually a dual-screen, hinged smartphone. It's not running Windows 10, it's running Android. And it's not powered by Intel, it has Qualcomm's Snapdragon 855 processor inside. * Do These 7 Retail Stocks Make the Grade? Microsoft also unveiled a new take on its Surface Pro 2-in-1 tablet called the Surface Pro X, and this one is even more worrisome for INTC. Why? Because the Surface Pro X has a larger display than the Surface Pro, it has longer battery life, it has LTE included as a standard feature, it's lighter, and it's significantly thinner. Like the Surface Pro 7 it runs Windows 10. But instead of Intel inside the new Surface Pro X, Microsoft partnered with Qualcomm to design a custom ARM-based chip called the Surface SQ1.Making things even worse for INTC was the new 15-inch Surface Laptop 3. The smaller version of the laptop gets those 10th-gen Intel Core chips, so all is good there. But Microsoft showed off a new 15-inch model that it's positioning as a premium powerhouse, able to run circles around the class-leading Apple (NASDAQ:AAPL) MacBook Air and even outperforming the MacBook Pro. There's no Intel chip inside the 15-inch Surface Laptop 3. Instead, Microsoft worked with AMD on a semi-custom version of its mobile Ryzen processor. A Microsoft Set Standard is Bad News for INTC Stock Microsoft is seeing some nice revenue from sales of its Surface hardware, but the Surface products serve a much more important purpose. The company uses them to explore new form factors and capabilities that lead the way for traditional PC manufacturers to follow. They become almost a reference design.Based on this week's Surface event, INTC and anyone who has invested in Intel stock should be more than a little worried. AMD's Ryzen processors have been eating into Intel's desktop market share, but haven't had the same success with laptops. With Microsoft adopting a Ryzen processor for its most powerful Surface Laptop 3, that could change. And while other PC manufacturers have experimented with ARM-based chips in ultraportable laptops for several years, with the Surface X Pro and its SQ1 mobile chip, Qualcomm's profile in the Windows PC laptop space just got a huge shot in the arm. * 8 Stocks to Buy Offering Both Dividends and Growth The Surface Duo is technically a smartphone, so it's not really encroaching on INTC territory. However, the buzz over the device and Microsoft's return to mobile added to the chatter that Qualcomm enjoyed and overshadowed the relatively boring news about the Surface devices that got incremental Intel processor upgrades. Intel dropped below $50 to close at $49.39 on Tuesday for a 2.7% loss. It regained some of that on Wednesday and Thursday, but INTC stock is up just over 6% on the year. Another way to look at the Intel stock price is it has lost a third of its value since the peak of the PC market. Microsoft's Surface event -- with Qualcomm and AMD chips in the spotlight -- signals the decline of Intel's share of the remaining PC market may start to accelerate. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Intel Stock Takes a Hit With Competitors in Microsoft Event Spotlight appeared first on InvestorPlace.
Yesterday, Microsoft debuted its Surface Laptop 3, Surface Pro X, and Surface Pro 7 at its Surface Event 2019. Each laptop offers different processors.
Microsoft (MSFT) unveils innovative Surface devices at its October event, including fresh dual-screen devices with an aim to advance workspace productivity.
(Bloomberg) -- On the same day Microsoft Corp. showed off some custom processors in its new Surface products in New York, the company was trying to hire even more chip designers to fuel its growing microprocessor-design ambitions. The company held a recruiting event Wednesday in Austin, Texas, seeking experienced “custom CPU/SoC design” engineers for jobs in Raleigh, North Carolina; Sunnyvale, California; and Fort Collins, Colorado, in addition to its headquarters in Redmond, Washington, according to a post on Microsoft-owned LinkedIn. SoC stands for system on a chip and it’s a single piece of silicon with multiple chips — widely used for smartphones.All the locations except Redmond have deep chip talent connections. Qualcomm Inc.’s former server chip team was based in Raleigh and Sunnyvale is near Santa Clara, which is home to Advanced Micro Devices Inc., Intel Corp. and Nvidia Corp. AMD has another site in Fort Collins.Microsoft works with each of those companies to customize chips and may be interested in recruiting some of their workers. The company has been increasingly designing parts or all of processors for things like HoloLens augmented reality goggles, cloud infrastructure and its own hardware. The overhauled Surface Pro X hybrid laptop and tablet announced Wednesday features a chip called Microsoft SQ1, which is based on Qualcomm’s Snapdragon product with some changes, and also contains an artificial intelligence processor.To contact the authors of this story: Dina Bass in Seattle at firstname.lastname@example.orgIan King in San Francisco at email@example.comTo contact the editor responsible for this story: Andrew Pollack at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Microsoft Corp. unveiled a dual-screen, foldable phone that will run on Google’s Android operating system, jumping back into the handset market after product failures and costly writedowns pushed it out three years ago. The phone, called the Surface Duo, has two 5.6-inch screens and will ship in time for the 2020 holiday season, Microsoft Chief Product Officer Panos Panay said at an event in New York Wednesday. With the Duo, Microsoft will seek to seize a share of a massive global market for mobile phones that’s on the cusp of transitioning to new technology with the arrival of 5G networks. Chief Executive Officer Satya Nadella took Microsoft out of the phone business in 2016, three years after the purchase of Nokia Oyj’s handset unit for more than $7 billion failed to arrest Windows’ sliding share in the smartphone market.Since then, company executives have repeatedly said Microsoft wouldn’t re-enter that market unless it had something different to offer. A return to phones this time has Microsoft relying on software rival Google’s Android for the operating system. Android powers the large majority of smartphones around the world. “This is an aggressive move that was not expected by the Street,” said Wedbush Securities analyst Daniel Ives. “We view it as a smart strategic gamble by Nadella to jump back into the deep end of the pool on the smartphone front.’’ The new phone makes sense for Microsoft because any company that's serious about hardware needs to have a mobile play, said Ryan Reith, an analyst at research firm IDC. The most interesting thing about the announcement is the dual-screen form, Reith said. It's likely Microsoft made that choice because a regular phone wouldn't have stood out as much among the dozens of alternatives already out there, he said.The move also draws Microsoft further into a hardware business some investors still haven’t warmed to. Microsoft shares were down 2.2% to $134.01 at 12:31 p.m. in New York. Nadella has been quick to embrace rival products where it advances Microsoft’s goals, such as apps for Android and Apple Inc.’s iOS, and using the Linux operating system within Windows and Azure cloud products.The European Union’s antitrust ruling against Google last year over the way it puts search and web-browser apps onto Android devices also means Microsoft would be freer to merge its own apps with Android. Since the EU’s case, it's now possible for a phone maker to use Android and the Play app store and still preinstall all of its own services on the homescreen.Microsoft and Google make competing sets of productivity software, and it remains to be seen which company's apps will be preloaded on the phone. Still, it's unlikely the handset will become a major battleground for the two, Reith said.“Both risk their productivity suites competing with each other but there's more short-term opportunity for them collaborating,'” he said.Other announcements made at Microsoft’s annual hardware event include a new Surface Neo laptop with a 360-degree hinge and two 9-inch screens so it can open like a book or like a laptop. The device has a removable, flipable keyboard, which magnetically seals to the back of the device, along with a pen. It will run a new version of Windows 10 designed for dual screens called Windows 10X. The new foldable Surface products come as companies like Samsung Electronics Co. and Huawei Technologies Co. have also rolled out phones with similar features, albeit after some initial design difficulties, and PC makers like Lenovo Group Ltd. have shown computer prototypes with folding screens. Microsoft also introduced a completely redesigned version of its Surface Pro hybrid tablet-laptop that's thinner, lighter and faster than previous models and runs on a customized processor with Microsoft and Qualcomm Inc. technology. Called the Pro X, the device also has a custom artificial intelligence processor and better battery life. The device’s pen gets stowed in the tablet’s cover where it wirelessly charges. Microsoft also showed off white, circular Surface earbuds that have touch controls to enable the user to take calls and switch music. They will be available later this year starting at $249.Redmond, Washington-based Microsoft relies on its Surface devices to boost sales as well as show off its software and attract customers to its family of products. Many of the products have been well reviewed, though Microsoft lags behind Apple and other hardware vendors in popularity. Microsoft held a 3.6% share of the worldwide tablet market in the second quarter of this year, making it the No. 6 vendor with shipments of nearly 1.2 million units, according to IDC. That represents growth of 48% compared with a year earlier. Apple by comparison was No. 1 in with a 38% share.Microsoft also presented a new laptop and an update to the existing Surface Pro device.The new Surface Laptop 3 will have an aluminum exterior finish, “instant on” and a bigger trackpad. The device will be available with a 15-inch screen and fast charging. Panay said the product is three times more powerful than Apple’s Macbook Air. The devices can be pre-ordered starting Wednesday and will be available Oct. 22 at $999 for the 13-inch and $1,199 for the 15-inch. The Surface Pro 7 comes out the same day and starts at $749.Microsoft’s device revenue topped $6 billion in the year that ended June 30, including Surface units and PC accessories, according to its annual filing. The company uses the devices to attract corporate users to its hardware and programs, while Apple dominates the consumer part of the market, according to Wedbush’s Ives. “Surface represents the tip of the spear of the broader Microsoft ecosystem as Microsoft still needs a horse in the race on next generation consumer hardware and devices,” Ives said. “While some investors continue to question this investment as good money going after bad endeavors on Surface, we strongly disagree as this remains a mind and market share strategic gamble.”\--With assistance from Kiley Roache.To contact the authors of this story: Dina Bass in Seattle at email@example.comGerrit De Vynck in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Molly Schuetz at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Amazon had a great product launch event, announced a new wireless standard, Amazon Care for Seattle employees, an initiative to bundle digital voice assistants and much more.
This is what fundamentals and technicals say about buying Qualcomm stock now amid a truce with Apple, 5G leadership, and a Tencent pact.