Apple and Intel confirmed the chips deal

The US Apple (AAPL) and Intel (INTC) have confirmed and agreed the deal that Apple is buying the smartphone chip asset from Intel for 1 billion dollars. It means that Apple gets 2200 new employees and a portfolio of patents.

The deal was announced at the same time as Intel announced its quarterly figures. According to Intel, its sales declined 3 % to 16,5 billion dollars from year ago, but earnings fell 17 % to 4,2 billion dollars due to the changes in the US China trade situations. From April guidance, the revenue was 900 million dollars higher.

For Apple this means a new power in its supply chain and development of new products for 5G wireless network. At the moment, iPhones do not support the 5G but according to market estimates this situation is expected to change next year.

Intel retains the right to develop 5G chips to non-smartphone products like for internet of things. According to the new guidance for the third quarter, the revenue is expected to be 18 billion dollars with operating margins 33 %. The third quarter report is going to be announced on October 24th after the market close.

Intel´s share closed down 1,4 % to 52,16 dollars and Apple´shares were also down, 0,79 % to 207,02 dollars in New York.

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FCC is backing T-Mobile and Sprint merger

The US Federal Communications Commission Chairman Ajit Pai said he would back the merger between the telecommunications operators T-Mobile and Sprint in the US markets. The 26 billion dollars deal might be proceeding after the companies had made some adjustments to the operations.

According to Wall Street Journal this assurance would help the merger although the antitrust issue is still on the agenda. The merger needs the approval from both US Federal agencies and some market specialists expect that the FCC decision will boost also the Justice Department’s antitrust division to accept the merger.

-Two of the FCC´s top priorities are closing the digital divide in rural America and advancing United States leadership in 5G, the FCC Chairman Mr. Paid said according to WSJ.

In 2017 the FCC report found that the wireless business has had effective competition as prices for mobile data has been falling.

Today T-Mobile and Sprint said that they have agreed to invest in new wireless broadband service, especially in rural areas and to build new 5G infrastructure. The companies also agreed to sell Sprint´s Boost brand, a prepaid mobile phone service with millions of customers.

Shares of Sprint (S) jumped 22,8 % to 7,59 dollars in New York and T-Mobile´s (TMUS) shares were also trading higher, up 4,80 % to 78,99 dollars. The whole sector was also up: Verizon(VZ) up 1,82 % to 59,51 dollars and AT&T (T) up 1,89 % to 32,40 dollars.

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Qualcomm shares continued up 12% in Nasdaq today 

The share price of the US wireless company Qualcomm (QCOM) continued in the Nasdaq Stock Exchange in New York today. The stock ended up 12,25 % to 79,08 dollars in the aftermatch of the yesterdays news of the global royalty settlement with Apple (AAPL). Yesterday evening the stock climbed over 23 % after the news release.

Apple-shares also rose and ended up 1,95% to 203,13 dollars. The settlement means that the companies have agreed the shipments for the next six years and also Apple made an onetime payment related to the royalties. In the future Apple will have Qualcomm chips in its iPhones while the current supplier Intel (INTC) has had delivery problems.

Intel also announced yesterday that it will exit the 5G modem markets and focus on other parts of 5G ecosystem. Intel shares ended up 3,26% to 58,56 dollars. According to markets the company sift is seen as positive action towards more profitable business sectors.

The overall market sentiment was down in spite of the positive outlook for the semiconductor and mobile industry. Dow Jones ended down 0,01 % to 26 449 points, the S&P 500 index ended down 0,23 % to 2900 points and Nasdaq ended down 0,05 % to 7996 points.

Euro was trading unhanged at 1,1296 dollars, as well as the UK sterling, unchanged at 1,30 dollars.

During the day the economic indicators showed that China GDP grew 6,4 % annual rate during the first quarter this year. The growth exceeded the estimates. On the other hand, the US trade deficit dropped in February due to the 20,2 % decline in the imports from China.

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Apple and Qualcomm to settle royalty disputes

Apple-Watch-Series4_Gold-Milanese_09122018Apple (AAPL) and Qualcomm (QCOM) have reached an agreement about the global royalty disputes. The companies announced the deal on Tuesday evening but did not closed any price details.

According to the deal, Apple is to make an onetime payment to Qualcomm and part of the deal is that the companies have also reached  a six year license agreement. Qualcomm commented that this agreement will increase its earnings by 2 dollars per share when the shipments of chips to Apple starts.

After the news, the share price of Qualcomm jumped and closed up 23,21 % to 71,76 dollars. The share price of Apple was up slightly, closing 199,23 dollars.

Recent studies by CTA show that the 5 G enabled smartphones will reach 2,1 million units and 1 billion dollars revenue this year. According to the research by 2022, 76 % of all the smartphones will be 5 G enabled. It is expected that the rise of the 5 G in the US markets have fueled the companies to reach the deal.

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Intel to show virtual reality at the Olympic Games -CES2018

Intel (INTC) will present virtual reality first time at the Winter Olympic Games in South-Korea this year. The company said that they will focus on having 30 different events to engage real-time virtual viewing. Intel showed details about the project during the CES2018 in Las Vegas today.

– Intel will focus primarily on infusing its 5G platforms, Virtual Reality, 3D and 360-degree content development platforms, artificial intelligence platforms, and drones, along with other silicon solutions to enhance the Olympic Games, the company said.

The International Olympic Committee (IOC) and Intel announced in June last year this long-term technology partnership in New York.  IOC President Thomas Bach and Brian Krzanich, Intel’s chief executive officer, said the partnership is through 2024 and they expect this partnership will transform the Olympic Games and the experience globally.

The first Olympic Games activation will take place at the Olympic Winter Games Pyeongchang 2018, in South Korea, in February 2018, where Intel technology will provide real-time virtual reality viewing.

Intel’s global activation rights will include the Olympic Winter Games Pyeongchang 2018, the Olympic Games Tokyo 2020, the Olympic Winter Games Beijing 2022 and the Olympic Games in 2024 in a city yet to be selected.

– Intel 360 replay technology will allow fans to experience the greatest, most memorable Olympic moments from every angle at the Olympic venues. In the future, TV viewers at home will be able to experience what it’s like to be at the Olympic Games with a front-row seat, or choose from many different viewing points in the Olympic venues. The power to choose what they want to see and how they want to experience the Olympic Games will be in the hands of the fans, the company says.

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Self-driving cars in 2021 -CES2017 insight

According to Intel and Ford, self-driving cars will be in the markets in 2021. This is about 5 years earlier than expected a year ago by some market researchers.The development of autonomous cars with no steering wheels, brakes or driver is  faster than expected.

According to the CES2017 insights from leading tech companies and consumers, there are several trends that are backing this fast development. First, 5 G networks are being built by large network operators in the US, Europe and Asia. In order to “drive” such self-driving car it requires data and analytics.

For example according to Intel CEO Brian Krzanich one self-driving car is generating data which is comparable to 3000 people operating with their smartphones and laptops. So, one can think that one self-driving car must support the data traffic and connectivity of 3000 people at the same time. In order to have major break throught with the cars, faster networks and data speed is indeed needed.

Self-driving car – a second home?

While smart homes and smart cities are also developing at the same time, one could also say that self-driving cars would become second homes for those that are travelling longer journeys. People can listen to their favourite music, see news, read books, eat dinner or sleep. By the way, Sleep Tech- category (totally new) generated several exhibitors during the trade show.

There are several tech companies and car manufacturers working with self-driving cars. For example Google with Android OS, Apple with iOs, Tesla, Ford Motors, Volkswagen, Mercedes Benz and Toyota.

Goolge has named its self-driving car project called Waymo and says that the car has been driving nearly 2 million miles in the US. One aspect with the cars is of course the safety. Companies are working hard to make travelling safier and zero target in accidents is the target figure. Google has said that it is expecting the self driving car to be ready to the world soon.

New launches at CES

During the trade show, for example car maker Chrysler announced their all-electric Portal -concept. It is an electric car  and the hub is the mobile phone.

“Recognition and user authentication are the next level of personalization and a primary driving factor for the user experience. Facial recognition and voice biometric technologies work together to provide a seamless personalization experience. As a result, all passengers can set up individual and group settings for an enjoyable, customized experience”, the company says in the press release.

For example, it tells you who is in the vehicle and configure preferred settings, such as music, lighting, vehicle and seat temperatures.

Voice- a megatrend

Voice integration is also becoming more common. CES estimates that there will be new robots and smart home applications integrating voice recognition in their services and products already this year. Voice is making things easier, smoother and faster in certain situations and it is enlargering the digitalisation to new era; in the cars and at home.

Päivi Härkönen

 

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