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PC Decline Eats Intel Profits

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PC Decline Eats Intel Profits

Intel Q2 2013 profits drop by -29% Y-o-Y to $2 billion while revenues fall by -5% to $12.8bn as a declining PC market continues to affect the biggest chip maker in the world.

Revenues however do see slight (2%) growth if taken on a Q-o-Q basis.

The Intel PC Client group sees Y-o-Y revenue declines of -7.5% (or Q-o-Q growth of 1.4%) to $8.1bn, the Data Centre group remains flat Y-o-Y and Other Architecture revenues fall by -15% Y-o-Y to $942 million.

"In the second quarter, we delivered on our quarterly outlook and made several key product announcements," recently installed CEO Brian Krzanich says. "In my first 2 months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company."

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Surface Hits Microsoft's Q4

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Surface Hits Microsoft's Q4

The Surface RT hits Microsoft's fiscal Q4 2013 results-- the company takes a $900 million "inventory adjustment" charge after it slashes the prices of the still unsuccessful tablet.

Microsoft recently cut Surface RT prices by as much as -30%, perhaps a sign of faltering sales for the ARM-powered Microsoft tablet.

Further affecting company results are $540m worth of "previously deferred revenue related to the Windows Upgrade Offer" and $733m in European Commission fine.

Microsoft Q4 revenues total $19.9 billion with -24% Y-o-Y decline, down from analyst expectations of $20.7bn. Operating income totals $6.07bn, while net income amounts to $4.97bn.

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Microsoft Management Gets Major Reshuffle

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Microsoft Management Gets Major Reshuffle

Following a few weeks' worth of rumours Microsoft CEO Steve Ballmer announces "a far-reaching realignment"-- a massive management reshuffle effort creating a so-called "One Microsoft."

"Our strategy will focus on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most," Ballmer writes in an internal memo.

"As the times change, so must our company," Ballmer continues.

The reshuffle divides the company by function-- Engineering, Marketing, Business Development and Evangelism, Advanced Strategy and Research, Finance, HR, Legal, and COO. It is the first significant Microsoft reorganisation since 2008, when Ballmer split the platforms and services division in 3, namely Windows, online services and server and tools.

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What is Going On at Dell?

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What is Going On at Dell?

Back in February 2013 Michael Dell announced a grand plan to bring a struggling Dell back on its feet-- a leveraged buyout (LBO) worth $24 billion. However the past months proved complicated for Dell, as shareholders division made efforts for Dell's privatisation difficult. But what exactly is going on within the Dell boardroom?

Spearheading efforts against the buyout is one Carl Icahn. A billionaire with a 6% stake in the company, Icahn opposes the buyout. He demanded a "leveraged recapitalisation" (meaning a recalculation of the PC maker's value) back in March 2013 together with other investors, chiefly Southeastern Asset management, who argue Dell's going price ($13.65 per share) is too low.

"We believe management is intentionally emphasizing declining PC sales in order to justify its inadequate buyout price," a March 2013 Southeastern statement claims.

Fast forward by four months, and Icahn fires another assault-- a letter with a very unsubtle title, "Why Does Dell Keep Attacking Its Own Business?"

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One, Butterfly Boost HTC Q2 2013

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One, Butterfly Boost HTC Q2 2013

HTC sees a bit of a profit boost in Q2 2013 following record Q1 2013 lows-- net profits for the quarter reach T$ 1.25 billion ($41.63 million), up from $2.8m in the previous quarter.

The Q1 2013 drop in profits was brought about by camera component shortages delaying the flagship HTC One smartphone launch.

Company revenues for Q2 2013 total $2.4 billion with a -20% Y-o-Y decline-- still a slight improvement over the -33% Y-o-Y decline seen during Q2 2012.

However the increase in profits is both behind analyst forecasts and most likely short-lived. BNP Paribas expect a flat Q3 2013 for HTC, while Nomura Securities tell Reuters "competition from Apple and other Chinese brands are fierce... It'll be hard to keep the growth."

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Reuters: Intel to Prioritise Mobile

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Reuters: Intel to Prioritise Mobile

Intel will speed up the mobile and wearable device chip rollout as the market moves away from PCs, new Intel CEO Brian Krzanich and President Renee James tell Reuters in a first press sit-down since May.

The company will also increase focus on Atom processors, giving the product line as much (if not more) priority as the Core family. Intel might even open its factories to custom-designed (including ARM-based) hardware, just as AMD already does, in the face of declining PC returns.

"If there was a great customer that we had a great relationship with laptops and other mobile devices, and they said look, we'd really love you to build our ARM-based product, we'd consider it. It depends on how strategic they are," Krzanich says.

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Apple Recruits Yves Saint Laurent CEO

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Apple Recruits Yves Saint Laurent CEO

Bloomberg reports former Yves Saint Laurent CEO Paul Deneve joins the Apple ranks as VP, where he will work under CEO Tim Cook on what the company cryptically calls "special projects."

Deneve is no stranger to Apple, having worked with the company on 1990-1997. He also had experience leading Lanvin and Nina Ricci before becoming YSL CEO on 2011.

The hire appears unrelated to Apple's still vacant head of retail position-- that particular vacancy remains available since the company kicked out Ron Johnson replacement John Browett (he of Dixons and the $55 million "golden Hello") after all of 6 months back on October 2012.

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WSJ: Google Working on Games Console?

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WSJ: Google Working on Games Console?

Google already dabbles in STBs (Google TV) and audio equipment (Nexus Q), and we all know the smartwatch rumours. But is it also working on a videogame console, as The Wall Street Journal suggests?

The WSJ gives no further details on the console, other than that Google is "watching the efforts" of Android-based console maker Ouya. Similar devices Google might also be looking at include the Nvidia SHIELD and the Mad Catz M.O.J.O. recently seen at E3 2013.

Why is Google even working on a console in the first place? The WSJ sources claim it is "reacting in part to expectations that rival Apple will launch a videogame console as part of its next Apple TV product release." Readers with long memories will surely remember Apple already tried takiing on consoles once with the Pippin (a 1995 co-production with Bandai), while rumours repeatedly suggest the iPhone maker is working on a smartwatch of its own...

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HP Changes PSS Boss

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HP Changes PSS Boss

HP announces a change in leadership for the Printing and Personal Systems (PSS) unit-- after little more than a year executive VP Todd Bradley steps down from the role to assume leadership of Strategic Growth Initiatives.

In his new position Bradley will work with HP CEO Meg Whitman on boosting business in China and "extending the company’s critical channel partner relationships around the world."

“There’s nothing more important to HP than our channel partners and the future of our business in China,” Whitman says. “I’ve asked Todd to use his expertise to focus on these areas. I’ve also asked him to study the landscape of small companies and startups that could partner with HP to spur growth.”

Taking over PSS from Bradley is former Acer UK managing director and Lenovo VP (not to mention current HP PPS Asia Pacific and Japan senior VP) Dion Weisler.

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