Tag Archives: aapl

Apple, Alphabet May Gain If Self-Driving Cars Are 4th Video Screen

Apple ( AAPL ) and Alphabet’s Google helped turn mobile phones into the “third screen” for video consumption, joining the living-room TV and personal computers. Self-driving cars could emerge as the fourth video screen, says Morgan Stanley. And if that happens, Alphabet ( GOOGL ) and Apple loom as Silicon Valley companies that could gain. A new Morgan Stanley research report explores the potential impact of autonomous (self-driving) cars along with the emergence of shared, on-demand Uber-type services on a wide range of industries. If consumers don’t need to watch the road while motoring, they’ll have more time to eyeball Internet content or mobile video. “The car is effectively the 4th screen for media content consumption after PCs, phones and TVs. In our view, this is what the Silicon Valley will be targeting by leveraging the (autonomous) utility,” said the report. “Silicon Valley is interested not only in the utility aspect but more importantly in the potential multitrillion-dollar opportunity selling data, content and experiences unfamiliar to today’s auto firms.” Tech companies loom as partners for new entrants or for traditional automakers. If the fourth-screen model proves accurate, Google could expand its advertising business to a new market. Apple’s services business stands to gain as well. “The automobile is being increasingly viewed as a potential smartphone on wheels,” said the Morgan Stanley analyst team. Apple reportedly is developing an electric car, with a target date of 2019. Google is testing autonomous vehicles in two cities. Competition is growing fast in the autonomous-car market. Tesla is pushing into autonomous vehicles, with Mobileye ’s ( MBLY ) help. Also in the self-driving car race are General Motors ( GM ), Ford ( F ) and other carmakers. GM is partnering with ride-sharing service Lyft. “Driving has long been seen as synonymous with personal freedom. But among the costs of this freedom is what we estimate to be approximately 400 billion hours of non-productive time gripping a steering wheel and trying to concentrate on the road ahead,” said the Morgan Stanley report. “What if the future of automotive transportation afforded consumers with all of the traditional benefits of personal freedom of mobility while using that precious hour per day for other activities?”

Apple Outlook Cut As iPhone 7 Doesn’t Seem Like Must-Have Device

Apple ( AAPL ) iPhone sales might not rise this year, as the company’s next-generation handset is looking like an incremental upgrade that won’t excite customers, Barclays analyst Mark Moskowitz said in a research report Wednesday. Moskowitz cut his price target on Apple stock to 131 from 142 but reiterated his overweight rating. Apple stock was up a fraction, near 108, in afternoon trading on the stock market today . The analyst also lowered his iPhone unit sales estimates for the March and June quarters to 50.7 million and 46.3 million, respectively, down from 51.3 million and 49 million. “Our revised iPhone estimates signal more patience is required, owing to tenuous demand and the uncertain effects of iPhone SE rollout on (average selling prices) and margin,” he said. Apple is scheduled to report March-quarter results on Monday after the market close. Moskowitz also questioned iPhone sales prospects for the September and December quarters, based on reports about the upcoming iPhone 7. “Our research indicates iPhone 7 prototypes do not suggest any must-have form factor changes,” Moskowitz said. For the calendar year, he now expects iPhone unit sales to decline 1.8% vs. his previous forecast for 2.6% growth. On the plus side, Apple reportedly plans to skip its traditional S model iPhone next year and jump straight to a redesigned smartphone in the iPhone 8, Moskowitz said. “The jump could showcase major form factor changes, including OLED (display), no home button and wireless charging,” he said. “In our view, these potential changes could drive a mega-cycle.” RELATED: Apple Slices Below 200-Day On iPhone Production Cuts Report .

Intel Will Slash Up To 12,000 Jobs After Q1 Sales Miss On PC Woes

No. 1 chipmaker Intel ( INTC ) lagged Wall Street’s Q1 revenue expectations late Tuesday on PC sales that grew minimally vs. the year-earlier quarter, and announced that up to 12,000 positions would be cut by mid-2017. The 12,000-cut represents 11% of Intel’s global workforce and will require “a combination of voluntary and involuntary departures and a re-evaluation of programs,” according to the press release. Most affected employees will be notified within 60 days. And CFO Stacy Smith will move to a “broader, new role within Intel” leading sales, manufacturing and operations, and reporting directly to CEO Brian Krzanich. Smith will remain in his role pending a formal CFO search, Krzanich said on Intel’s conference call with analysts, after it released results. Intel stock was down more than 2% after hours, having closed down 0.2% during the regular session. Shares are weaker by 8% for the year, having rebounded from a slide in January and mid-February amid reports of weak Taiwanese ODM sales. Krzanich detailed the restructuring in an email to employees, highlighting Intel’s stepping away from PCs to focus on high-growth segments like the data center, Internet of Things and memory which, together, brought in $2.2 billion in revenue growth in 2015. “We are evolving from a PC company to a company that powers billions of smart, connected devices,” Krzanich said on the call. “We do not take these changes lightly. We will be saying goodbye to employees who have played a great role in Intel’s success.” By restructuring, Intel plans to save $750 million in the first year, with an annual run rate savings of $1.4 billion by mid-2017, allowing Intel to “intensify” its investments in its key growth areas. Ultimately, “we expect an even more profitable client computing group (PC),” Krzanich added. PC sales comprised 55% of Intel’s Q1 sales, but have struggled in recent quarters amid stiff tablet and two-in-one competition. Q1 Sales Lag, But EPS Tops For Q1 ended April 2, Intel reported $13.7 billion in sales and 54 cents earnings per share, up 7% and 20%, respectively, vs. the year-earlier quarter. EPS topped analyst expectations by more than a nickel, but sales missed. The consensus of 45 analysts polled by Thomson Reuters modeled $13.83 billion in sales (against Intel’s non-GAAP revenue of $13.8 billion) and 48 cents EPS, in line with Intel’s earlier view for $14 billion in sales, plus or minus $500 million. Nonvolatile memory sales declined 6% vs. the year-earlier quarter, underperforming the struggling PC unit, which managed to climb 2% year over year. Intel’s high-growth units — data center and Internet of Things — grew a respective 9% and 22% year over year. Security sales popped 12% vs. the year-earlier quarter. Krzanich didn’t address recent rumors that Apple ( AAPL ) might tap Intel to supply 30 million-40 million iPhone 7 modems — a development that had sent Intel’s stock jumping. Qualcomm ( QCOM ) typically sources the iPhone modem and would retain the lion’s share of the iPhone 7, analysts say. Analysts largely doubt Intel’s mobile strategy, which hasn’t yet played out. But Krzanich, on the call, defended the mobile unit, which he said “is absolutely continuing to grow for us as a segment, and we’re increasing our profitability.” For the current quarter, Intel guided to $13 billion to $14 billion in sales, which would be up 2% at the midpoint vs. the year-earlier quarter. The company reduced its full-year guidance to mid-single-digit growth. Earlier, Intel saw mid- to high-single-digit growth. Pacific Crest and S&P Global Market Intelligence analysts had expected Intel to cut its full-year guidance on the ebbing PC market, which industry trackers IDC and Gartner recently saw dipping 11.5% and 9.6%, respectively, in Q1 shipments. Days after the forecasts emerged, rumors cropped up that Intel might be prepping to cut thousands of jobs.   Image provided by Shutterstock .