Mark Hurd, recently appointed head of Hewlett-Packard has rejected calls to spin off the highly profitable printer business.
He does not believe that HP is more valuable broken up. Instead, he wants to ensure that the division has room to grow more vigorously, particularly now that it faces greater competition from Dell.
Hurd says that they will spend more on R&D at the printer dividion and get more aggressive with it. HP is already creating painful waves in the market through cut-throat printer pricing.
Mr Hurd aslo stated that he has no plans to spin off the PC business as it underpins much of the other businesses at HP. So, it looks as though Hurd plans to keep Ms Fiorina's strategy in tact, instead focussing on making all the HP businesses perform better and integrate more efficiently. We think he is on the right track. Results seem to be showing through already.
Wednesday, October 05, 2005
Wed - Macquarie to list global media fund
Macquarie Bank, Australia's largest investment bank is raising $760M through the listing of a newly created international media fund. It looks like they will immediately roll into the fund 85 commercial radio licenses they own in several Australian cities.
This media fund is a way for Macquarie to capitalise on expected changes to Australia's media law next year that will allow more room for cross-media M&A, as well as an increasing appetite for media assets given the growth of broadband and digital networks in particular.
The fund will seek controlling interests in its investments, or at least significant influence. The fund is eyeing media assets in the UK, North America and Asia.
This media fund is a way for Macquarie to capitalise on expected changes to Australia's media law next year that will allow more room for cross-media M&A, as well as an increasing appetite for media assets given the growth of broadband and digital networks in particular.
The fund will seek controlling interests in its investments, or at least significant influence. The fund is eyeing media assets in the UK, North America and Asia.
Wed - Arm unveils new mobile processor
Arm, the UK chip designer has announced a processor, called Cortex-A8, that will provide desktop PC like performance to mobile and electronic devices. The Cortex-A8 processor should offer speeds of up to 1 gigahertz and consume less than 300 milliwats of power.
Arm have further announced that 5 licences of Cortex-A8 have already been sold to Freescale, Matsushita, Samsung and Texas Instruments.
Arm have further announced that 5 licences of Cortex-A8 have already been sold to Freescale, Matsushita, Samsung and Texas Instruments.
Wed - Motorola signs Universal to its wireless music service
Mobile phone maker Motorola yesterday signed up Universal, which has performers such as Eminem and Mariah Carey in its catalogue, for iRadio. This is a wireless music service to rival Apple's iTunes, which Motorola is planning to launch in 2006.
The big question is whether 2006 will start to see mobile phones become mass market digital music players to rival dedicated digital music players such as Apple's iPod. Given the lack of effective mobile music handsets today, I suspect you will not see mobile music devices sold in large volumes until 2007.
The big question is whether 2006 will start to see mobile phones become mass market digital music players to rival dedicated digital music players such as Apple's iPod. Given the lack of effective mobile music handsets today, I suspect you will not see mobile music devices sold in large volumes until 2007.
Tuesday, October 04, 2005
Tues - Google & Sun link online to compete with Microsoft
Google and Sun link online to compete with Microsoft. Google and Sun Microsystems have just announced a partnership in which they plan to make available online Sun's word processing and spreadsheet software through Google's websites and toolbars.
In a move that clearly competes head on with Microsoft's Office software package, the project will allow access to Sun's Openoffice files and work on projects from any PC.
Sun's Openoffice is also now a viable alternative to Microsoft's Office after solid reviews for its latest release. Given that Microsoft's Office costs around $300, there should be strong demand for the Sun/Google offering which will presumably be free or cost very little indeed.
In a move that clearly competes head on with Microsoft's Office software package, the project will allow access to Sun's Openoffice files and work on projects from any PC.
Sun's Openoffice is also now a viable alternative to Microsoft's Office after solid reviews for its latest release. Given that Microsoft's Office costs around $300, there should be strong demand for the Sun/Google offering which will presumably be free or cost very little indeed.
Tues - Digital music sales soar in first 6 months of 2005
Revenue from digital music sales has soared, more than tripling in the first six months of 2005. This partly offset a decline in overall music sales.
Overall digital music sales reached around $790M for the first half as opposed to $220M during the same period a year earlier.
The figure represents 6% of total record industry sales, which overall are still declining, and was driven by the growing availability of broadband, portable music players and 3G mobile phones.
The music industry has experienced sales declines in four of the past five years, amid a scourge of piracy. Yet executives seem heartened because of legal decisions this year against Grokster and Kazaa amongst others, as well as market research that suggests there is a growing willingness by consumers to purchase music legally online.
Overall digital music sales reached around $790M for the first half as opposed to $220M during the same period a year earlier.
The figure represents 6% of total record industry sales, which overall are still declining, and was driven by the growing availability of broadband, portable music players and 3G mobile phones.
The music industry has experienced sales declines in four of the past five years, amid a scourge of piracy. Yet executives seem heartened because of legal decisions this year against Grokster and Kazaa amongst others, as well as market research that suggests there is a growing willingness by consumers to purchase music legally online.
Tues - KPN share price rises 7% on Telefonica rumours
KPN shares rose 7% to a four year high yesterday following a report that Telefonica, the Spanish telecoms group, was considering offering Euor20bn for the Dutch operator.
Tues - Sony fires back the latest salvo in the battle for next generation DVD
Sony has claimed the latest victory in the almost daily salvo between the Japanese electronics flagship and rival Toshiba for the next generation high-definition DVD format.
Today Sony tells us that Paramount Pictures has expressed support for their Blu-ray Disc DVD by saying that it will release titles capable of being played on that format. Last December Paramount announced that they would release titles on Toshiba's competing format. So, it is not yet clear whether Paramount intends to support both formats or has now chosen to switch to Sony's Blu-ray.
Winning over the movie studios is the key to deciding which format will ultimately win. Up until Paramount's moast recent decision, the studios seemd evenly split in their support of the two formats. But, with Paramount's backing Sony has now stated that 60% of US filmmakers have declared their support for Blu-ray.
Among other Hollywood studios, Walt Disney and Sony Pictures Entertainment back Blu-ray, with Universal Pictures and Warner Bros supporting Toshiba's HD DVD.
Today Sony tells us that Paramount Pictures has expressed support for their Blu-ray Disc DVD by saying that it will release titles capable of being played on that format. Last December Paramount announced that they would release titles on Toshiba's competing format. So, it is not yet clear whether Paramount intends to support both formats or has now chosen to switch to Sony's Blu-ray.
Winning over the movie studios is the key to deciding which format will ultimately win. Up until Paramount's moast recent decision, the studios seemd evenly split in their support of the two formats. But, with Paramount's backing Sony has now stated that 60% of US filmmakers have declared their support for Blu-ray.
Among other Hollywood studios, Walt Disney and Sony Pictures Entertainment back Blu-ray, with Universal Pictures and Warner Bros supporting Toshiba's HD DVD.
Tues - Micro chip record predicted
Global chip sales are on track to beat their record year of 2004 according to the Semiconductor Industry Association.
The body reported that sales rose sharply in August to $18.6bn, up 3.2% from the $18bn reported in July, and 1.7% higher than the $18.3bn recorded in August 2004.
Year-to-date chip sales were $144.4bn, up 5.8% on the 2004 running total at this stage of $136.5bn.
PC unit sales are running ahead of earlier forecasts, boosting sales of microporcessor and D-Ram chips. Flash memory sales have also risen sharply thanks to the growth in sales of mobile phones and consumer electronic products like MP3 players.
The body reported that sales rose sharply in August to $18.6bn, up 3.2% from the $18bn reported in July, and 1.7% higher than the $18.3bn recorded in August 2004.
Year-to-date chip sales were $144.4bn, up 5.8% on the 2004 running total at this stage of $136.5bn.
PC unit sales are running ahead of earlier forecasts, boosting sales of microporcessor and D-Ram chips. Flash memory sales have also risen sharply thanks to the growth in sales of mobile phones and consumer electronic products like MP3 players.
Monday, October 03, 2005
Mon - Telefonica in talks to acquire KPN for Euro20bn
Telefonica of Spain has apparently approached KPN about acquiring the Dutch telecoms operator for around Euro20bn.
If such a deal were to go ahead it could lead to the biggest shake-up of the European telecoms industry for years. It would also create another sizeable pan-European player to rival France Telecom, Deutsche Telekom and Vodafone.
Both Telefonica and KPN are denying the rumours.
If such a deal were to go ahead it could lead to the biggest shake-up of the European telecoms industry for years. It would also create another sizeable pan-European player to rival France Telecom, Deutsche Telekom and Vodafone.
Both Telefonica and KPN are denying the rumours.
Mon - Blinkx internet TV service goes live
Blinkx, the search engine, is today launching an internet TV service which allows users to build their own channels.
MyBlinkx.tv also allows content owners, including existing TV networks and video bloggers to upload shows and have their media files hosted free of charge by Blinkx.
The channels can be created according to subject and the content streamed live or downloaded for later viewing, while being continuously updated.Blinkx can apparently also enable a payment system if contributors wish to charge.
This sounds interesting. It's good to see another step in internet video coming together. Still a long way to go though.
MyBlinkx.tv also allows content owners, including existing TV networks and video bloggers to upload shows and have their media files hosted free of charge by Blinkx.
The channels can be created according to subject and the content streamed live or downloaded for later viewing, while being continuously updated.Blinkx can apparently also enable a payment system if contributors wish to charge.
This sounds interesting. It's good to see another step in internet video coming together. Still a long way to go though.
Mon - Toshiba's disk format given China boost
Two of China's largest manufacturers of DVD players have decided to make products that are compatible with the high-definition standard developed by Toshiba. This decision gives another lift to Toshiba's standard after Microsoft and Intel recently supported Toshiba's format.
The battle between Toshiba and Sony for next generation high-definition DVD formats rages on, with both announcing support from key segments of the industry. But, the most significant players, the movie studios, remain split.
Mind you, given that cost effective Chinese DVD players dominate the global market, this could prove to be a critical step for Toshiba.
The battle between Toshiba and Sony for next generation high-definition DVD formats rages on, with both announcing support from key segments of the industry. But, the most significant players, the movie studios, remain split.
Mind you, given that cost effective Chinese DVD players dominate the global market, this could prove to be a critical step for Toshiba.
Mon - NTL buys Telewest for $6bn
NTL has confirmed that it's buying rival UK cable operator Telewest for about $6bn.
The deal should help them compete better with rivals such as BT and Sky and should allow them to better afford to roll out new services such as HDTV, VoD and VoIP.
The deal should help them compete better with rivals such as BT and Sky and should allow them to better afford to roll out new services such as HDTV, VoD and VoIP.
Sunday, October 02, 2005
Sun - NTL, leading UK cable operator, to buy Telewest for $5.8bn
NTL and Telewest, the rival UK cable operators, are expected to announce this week their long awaited merger.
The two sides are said to be close to signing a deal, involving a cash and shares offer by NTL for Telewest at $23-24 per share, thus valuing the smaller group at $5.6-5.8bn.
The combined group could present a powerful challenge to Sky's business in the UK.
The two sides are said to be close to signing a deal, involving a cash and shares offer by NTL for Telewest at $23-24 per share, thus valuing the smaller group at $5.6-5.8bn.
The combined group could present a powerful challenge to Sky's business in the UK.
Sun - Google to leap into Telecoms?
Google, the Californian search company has filed an application to provide a free wireless internet service to all of San Francisco. The mayor wants the free service to allow all income groups to access the internet in the city. More than a dozen other firms are competing with Google.
If Google gets the go-ahead, San Francisco could prove a testing ground for Google to potentially launch a national "wi-fi" service. Industry experts believe Google is trying to ensure that people can connect to its search engine anytime, anywhere. Google is remaining quiet on the matter.
If Google gets the go-ahead, San Francisco could prove a testing ground for Google to potentially launch a national "wi-fi" service. Industry experts believe Google is trying to ensure that people can connect to its search engine anytime, anywhere. Google is remaining quiet on the matter.
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