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.

Business Finance Tech

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.

Business Tech

CTA: Smartphones will soon rival TVs

Smartphones are becomming more and more common among the consumers in the US. According to CTA research smartphones will soon rival TVs as the most owned tech product with 87 % ownership versus 96 % for TVs. It is estimated that smartphones will match with TVs during the next five years.

New emerging tech categories include also for example Amazon Echo and Google Home. The ownership has risen to 22 percent.

Smartwatches are also gaining growth to 18 % of the US households. The increase is 6 % from year ago.

The CTA research was done during the Feb-March 2018 and it included 2016 persons.applewatch_nylon_photo_4

 

Lifestyle Tech

Xiaomi planning over 6 billion dollars IPO

Xiaomi, the Chinese smart-phone maker,  is planning to raise 48 billion HK dollars ( 6,12 billion US dollars) in the IPO in HongKong, the company said on Saturday. It would be the biggest Chinese tech IPO since Alibaba in 2014.

Mi MIX in white_01_preview

The Company will offer about 2,18 bilion shares priced between 17 and 22 HK dollars. The offering is starting next Monday and ending at Thursday. Trading of the shares is expected to start on July the 9th.

According to the founder, chairman and CEO Lei Jun the company´s revenue has exceeded 100 billion yuan (15,3 billion US dollars). The company was founded seven years ago. Xiaomi will be investing in global expansion and internet ecosystem.

Xiaomi is an internet company with smartphones and smart hardware integrated with its IoT platform.

Business Tech