2023-09-10 04:00:37
In the coming week, three major events in the technology industry will become the focus of global attention, and investors around the world will pay close attention and keep an eye on subsequent developments, because the results may bring dramatic and unexpected changes to the technology industry.
In just a few days, Apple (Apple) will launch the latest generation of iPhone, which is highly anticipated by Apple fans around the world; shortly afterwards, the U.S. Department of Justice’s three-year antitrust case against the search giant Google is about to begin; and the chip design company headquartered in the UK is about to begin. The company, Arm Holdings, will also be listed.
Barron’s reported that each of these three important events in the technology industry may allow investors to reap fruitful fruits, but they are also accompanied by huge risks.
related articles:Apple’s iPhone 15 order quantity may be reduced across the entire series, with only 80 million Pro models in a single month
1. Introducing iPhone 15
Apple will hold its autumn new product launch event on September 12 (Tuesday). This year’s theme is called “Wonderlust.” The highlight is expected to be the launch of the iPhone 15 (although analysts are also looking forward to an upgraded smart watch, Apple Watch, and wireless headphones. AirPods). No one expects the iPhone to revolutionize significantly, and perhaps the most significant change is the switch from Apple’s proprietary Lightning port to the more commonly used USB-C standard. In addition, the processor is expected to be upgraded, the camera should be improved, the bezels should become ultra-narrow, plus some other minor adjustments. The price is expected to be higher than that of iPhone 14.
Optimists are optimistic that the new iPhone will trigger a sales boom. Wedbush Securities analyst Ives expects the iPhone 15 to drive a wave of replacements and boost iPhone sales; he estimates that about a quarter of the 1.2 billion existing iPhone users have used them for at least four years. .
However, there are also some concerns. Consumer spending is hardly strong at the moment, and smartphone sales have been weak for months. According to Counterpoint Research, global smartphone shipments in the April-June quarter fell 9% compared with the same period last year. At the same time, Apple faces dual challenges in the Chinese mainland market. Mainland mobile phone giant Huawei’s newly launched Mate 60 Pro flagship smartphone is coming aggressively, and it is likely to regain market share from Apple. To make matters worse, the Wall Street Journal revealed that mainland China has banned government officials from using iPhones and other foreign-brand mobile phones.
Morgan Stanley analyst Woodring estimated that concerns that Apple’s mainland market share may plummet by 6% as a result may be exaggerated; however, he pointed out that the market is now worried about more than just the sales prospects of the iPhone 15.
Woodring wrote in a research report: “China may tilt more towards a nationalist line. If so, it may jeopardize more than $30 billion in operating interests if China decides to restrict Apple products from entering the Chinese market.” Although he believes that based on Apple plays a pivotal role in mainland China’s economy, so that bleak ending is unlikely to happen.
In short, the launch of iPhone 15 on Tuesday is a big event, and all problems will not be solved. However, the initial sales speed will surely become the focus of continued attention of the global market.
Further reading:Five reasons not to buy iPhone 15: The appearance has not changed and charging is slow. After reading this, I give up the idea of spending money.
2. Anmou goes public to test the IPO market temperature
SoftBank Group bought the chip design company Arm for US$32 billion in 2016; in 2021, it agreed to sell Arm to Nvidia for US$40 billion in cash and stock, but was criticized by regulatory authorities. Concerned and broke the situation; SoftBank immediately began planning an initial public offering (IPO). Earlier, Arm announced that the IPO reference price was set at US$47 to US$52 per share, based on which Arm’s valuation is estimated to be approximately US$50 billion. Arm’s IPO pricing is expected to be announced on the evening of September 13 (Wednesday), and trading will begin on the Nasdaq market in the United States the next day.
SoftBank has high expectations and high ambitions for Arm’s valuation. Arm’s revenue last year was mediocre, with only $2.7 billion. Based on the high-end IPO reference price, the valuation is close to 20 times the trailing price-to-earnings ratio, which is higher than almost any listed technology company. ARM seems to be aiming for a valuation that can compete with artificial intelligence (AI) chip giant Nvidia, but without growth, it is obviously too far-fetched.
Not to mention there is another variable: China plays a pivotal role in securing the future. Arm’s revenue in mainland China accounts for as much as 25%, making it more dependent on the mainland market than Apple. For this reason, Amou’s IPO disclosure prospectus focuses on the risks related to mainland China, occupying three full pages.
There is no doubt that Arm is a key player in the global chip market – almost every smartphone on the market uses some kind of Arm-designed chip. The public prospectus shows that there is a long list of technology companies interested in acquiring Amou’s IPO shares, including Apple, Google, Intel, Huida, Samsung and TSMC.
However, Arm’s exposure to China may give investors pause. The greater risk is that if this IPO is less successful than expected and the results are far less than expected, it may hinder other technology companies from going public this year.
Further reading:The ranking of cities where billionaires live in the world in 2023 is released. The number of billionaires in Hong Kong and New York has decreased.
3. Google antitrust case begins
Three years ago, the U.S. Department of Justice filed an antitrust complaint against Google, accusing the Alphabet unit of illegally monopolizing the online search market. The case is scheduled to be heard in the federal court in Washington on September 12 (Tuesday). In its 2020 complaint, the Department of Justice alleged that Google used “anti-competitive tactics” in an attempt to maintain and consolidate its near-monopoly market position in online search and search advertising. Google countered that the lawsuit was “deeply flawed.”
A key question is: Is Google’s longstanding position as the default search engine on Apple’s iPhone and Safari browser in jeopardy? Once this relationship is severed, it may be beneficial to Microsoft, which provides the Bing search engine. (It’s so ironic that things are changing.)
Another possible outcome is that the court orders the termination of Apple’s exclusive partnership with Google, forcing Apple to develop its own search engine. That would be big news that would rock the tech industry.
Further reading:
Bank of Japan chief hints at possible rate hike, expected to decide before year-end
U.S. stocks rebound, eyeing August inflation data
[Thisarticlereceived“United News Network”Reprinted with permission. 】
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