Samsung puts lid on capex for first time since financial crisis

SEOUL (Reuters) – Samsung Electronics Co turned cautious on spending for the first time since the global financial crisis, keeping its annual investment plan unchanged at 2012 levels, as demand for computer chips wanes and the smartphone market slows.

Samsung, one of the industry’s most aggressive spenders, has ramped up capital expenditure every year since 2004 except 2009 to meet soaring demand for its array of consumer electronics and mobile devices. It sold a record 700,000 smartphones a day in the last quarter.

But with the personal computer market shrinking for the first time in 11 years, the global smartphone market growing more slowly, and Apple Inc moving to buy fewer of Samsung‘s microprocessors used in the iPhone and iPad, the South Korean IT giant is now forced to keep a lid on spending.

“Overall its earnings momentum remains intact, and smartphone shipments will continue to grow even in the traditionally weak first quarter, as Samsung’s got a broader product line-up and Apple appears to be struggling in pushing iPhone volumes aggressively,” said Lee Se-chul, a Seoul-based analyst at Meritz Securities.

Samsung, which reported a record quarterly and annual profit on Friday, said it would keep 2013 capital expenditure unchanged from 2012.

“The key word for us in investment in 2013 is flexibility. We’ll decide as the market demand dictates,” Robert Yi, head of Samsung’s investor relations, told analysts.

Data from the company shows Samsung started to slow down planned investment in the last quarter.

Samsung said it spent 4.4 trillion won in October-December, pushing its 2012 investment to a record 23 trillion won ($ 21.5 billion). But the company said in October that it was on course to spend 25 trillion won in 2012.

Analysts had expected a 4-20 percent cut in Samsung’s 2013 capital spending.

By contrast, Taiwanese rival TSMC is planning to raise its capital expenditure to $ 9 billion this year, aimed in part at winning Apple orders away from Samsung.

Shares in Samsung fell 2.1 percent as of 0250 GMT, lagging a 1.1 percent decline in the wider market.

RECORD EARNINGS

Samsung had poured money into factories to boost production of chips and panels used in Apple products and its Galaxy range devices, pushing its operating profit to 8.84 trillion won in the last quarter. The 89 percent increase from a year earlier was in line with its earlier estimate.

Profit at its mobile devices division, which makes phones, tablets and cameras, more than doubled to 5.44 trillion won in the quarter from a year earlier, lifted by a broader offering of smartphones – from the very cheap to the very expensive.

The division accounted for 62 percent of Samsung’s overall fourth-quarter profit, up from 55 percent a year earlier.

Samsung is also seeing strong sales of its Note phablet, which analysts expect to help Samsung get through any seasonal weakness better than rivals.

Samsung, which doesn’t provide a breakdown of smartphone sales, is estimated to have sold around 63 million smartphones in the last quarter, including 15 million Galaxy S IIIs and 7 million Note IIs.

The company also said 2012 operating profit rose 86 percent to an all-time high of 29 trillion won.

SAMSUNG VS APPLE

Samsung sold 213 million smartphones last year and enlarged its share of the global market to 30.4 percent from around 20 percent in 2011, a report by market research firm Strategy Analytics showed on Friday. The sharp increase reflects Samsung’s aggressive marketing of its wide product range.

Apple’s share of the market shrank slightly to 19.4 percent from 19.0 percent in 2011, according to the report.

Globally, sales of smartphones surged 42.7 percent last year to 700 million, Strategy Analytics said.

Samsung said on Friday it expects the global smartphone segment to shrink in January-March from the seasonally strong fourth quarter, and that growth of the overall handset market will slow to the mid single-digits this year.

The forecast is in line with industry estimates, with signs of a slowdown having already emerged.

Apple shipped 47.8 million iPhones in the three months ended December, a record that nonetheless disappointed many analysts accustomed to years of outperformance. The Cupertino, California-based company also missed Wall Street’s revenue forecast for a third straight quarter as iPhone sales lagged expectations.

Apple shares have dropped by more than a third since mid-September as investors fret that its days of hyper growth are over and its devices are no longer as ‘must-have’ as they were.

By contrast, shares in Samsung have risen 12 percent in the same period as the company once seen as quick to copy the ideas of others now sets the pace in innovation.

At the world’s biggest electronics show in Las Vegas this month, Samsung unveiled a prototype phone with a flexible display that can be folded almost like paper, and a microchip with eight processing cores, creating a buzz that these may be used in the next Galaxy range.

“It’s very probable to us that the Exynos 5 Octa (processor) will find its way into the Galaxy S4,” UBS analyst Nicolas Gaudois wrote in a recent note.

“It also looked as if the curved display is close enough to finished product. We came away even more convinced that displays will provide significant differentiation to Samsung devices, and application processors will materially grow over time,” Gaudois said. ($ 1 = 1066.2000 Korean won)

(Reporting by Miyoung Kim; Editing by Ryan Woo)

Internet News Headlines – Yahoo! News

Title Post: Samsung puts lid on capex for first time since financial crisis
Url Post: http://www.news.fluser.com/samsung-puts-lid-on-capex-for-first-time-since-financial-crisis/
Link To Post : Samsung puts lid on capex for first time since financial crisis
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment

Read More..

Amanda Seyfried Calls Mean Girls Her Best Work

Despite being fresh off an Oscar-nominated film (Les Miserables), Amanda Seyfried apparently holds a soft spot for her breakout film Mean Girls, calling it her "best work" to date.

"I was so innocent. I was so green," reflects Seyfried in an interview with Indiewire. "I still look back at Mean Girls as my best work."

Pics: Amanda Seyfried as Porn Star Lovelace

The 27-year-old star stole the show playing the lovably ditzy Karen Smith in the 2004 comedy. Interestingly enough, Seyfried had little confidence in her on-screen work at the time.

"I look back and I’m like, 'Really, I thought I was doing a terrible job.' But it was written so well and so wonderfully directed," says the actress. "Mark Waters (the director) made me look good; he made me funny. And Tina Fey wrote the coolest script of all time."

Now, quite a bit more assured in her abilities, Seyfried is gearing up to show off her chops (and much more) as '70s porn star Linda Lovelace in the new biopic Lovelace. When asked about her reservations in taking on such a risque role, the star says she felt surprisingly comfortable disrobing and simulating sexual acts on film.

Video: SJP Talks About Replacing Demi Moore in 'Lovelace'

"I don't know why I’m comfortable. Nudity: whatever! Sex: we all do it," Seyfried explains to Indiewire. "There's a time and a place to be naked. There's no part in this movie that makes me think, 'Oh, wow, she's naked.' She's a porn star! We simulated some scenes but there's no graphic content in this movie, at all. I mean the graphic stuff is when he's raping me on my wedding night. You see my skirt go up over my head when I’m being gang raped, but it's like, so perfectly done."

Read More..

Brewing profits at S’bux

Starbucks profit jumped 13 percent on a spike in US coffee consumption during the winter holiday season.

The world’s biggest coffee chain reported net earnings of $432.2 million, or 57 cents per share, for the first quarter that ended Dec. 30, matching the average analyst estimate.

That was up from $382.1 million, or 50 cents per share, a year earlier.

Overall revenue jumped almost 11 percent, to $3.8 billion, during the quarter, which is Starbucks’ biggest for sales.

Global sales at stores open at least 13 months were up 6 percent — topping the 5.5 percent rise analysts polled by Consensus Metrix had expected. Those sales were helped by a 4 percent increase in traffic and a 2 percent increase in average spending per visit.

Shares rose 3 percent, to $56.20, in after-hours trading.

Read More..

Lennar design accommodates multigenerational families

In some cases, it may be Grandma moving in with the family. Other times, it may be a recent college graduate returning to the nest.

For all sorts of reasons — financial, medical, personal — a rising number of Americans are moving into extended family households.

Spotting a niche in the growing trend, Lennar Corp. has launched a new concept tailor-made for multigenerational family living.

It’s basically a house within a house: a smaller living unit next to the main home designed to provide independence but also access to the rest of the family household.

“People are really loving the whole concept,” said Carlos Gonzalez, president of the southeast Florida division of Lennar, a Miami-based home-building giant. “We adapted to the market from a design standpoint.”

In Miami-Dade County, Lennar is selling various versions of multigenerational homes in three new developments in Doral, Kendall and Homestead.

Louis Moreno of Kendall and his wife, Danilza Velez, signed a contract for a large NextGen home in The Vineyards development in Homestead last October — even before the models had been built.

“We loved it,” said Moreno, a 45-year-old engineer.

Moreno said his mother-in-law will be able to use the new suite when she visits, as will his family members who frequently come to town from Puerto Rico. “This will provide them with more comfortable space and more privacy,” he said. He also plans to use it as a game room and entertainment area.

The two-story Zinfandel home Moreno picked has three bedrooms and 2 1/2 bathrooms in the main home with a family room and two-car garage. In addition, it has an ample 789-square-foot suite with two bedrooms, a bathroom and a kitchenette. The suite has its own garage, a separate front entrance and an internal door connecting to the main home.

The Zinfandel, which has 2,249 square feet of air-conditioned space in the main house, starts at $283,990 in the Homestead community at 128 SE 28th Ter., but a similar home in Kendall would run about $100,000 more, primarily because of higher land costs, Fernandez said. (In Doral, there is a NextGen home priced at $677,990.)

Some multigenerational models have suites as small as 489 square feet, but all have a separate entrance, a bedroom, a bathroom and some sort of kitchen space.

The idea takes various shapes. One option at the Kendall Square development at 16950 SW 90th St. is a Granny unit above a detached garage.

“Independence is the key word,” said Frank Fernandez, director of sales and marketing for the southeast Florida division.

Depending on local zoning rules, some homes can have full kitchens, others are restricted to kitchenettes with a microwave but no stove. Similarly, some municipalities permit the space to be used as a rental, others prohibit it.

The choice is proving popular. Fernandez said in The Vineyards development in Homestead, 10 of the 14 homes sold to date are NextGen. At Kendall Square, 35 of 107 sales are multigenerational, and at the Isles at Grand Bay development at 11301 NW 74th Street in Doral, five of 48 houses are.

Adapting homes for special needs, such as wheelchairs and safety railings, is done at cost, Fernandez said: “That is company policy.”

As one of the nation’s largest home builders, Lennar has been rebounding strongly from the housing crash. Last week, the builder, whose shares trade on the New York Stock Exchange, posted better than expected earnings for the fourth quarter and fiscal year ended Nov. 30, 2012.

Read More..

Popular Spanish-language journalist Maria Elvira Salazar off the air in Miami

Popular Spanish-language television journalist Maria Elvira Salazar, who launched a new show on GenTV Channel 8 in Miami in October, is officially off the air.

The nightly news debate show, Maria Elvira, stopped airing at its 8 p.m. time slot in late December, but it was unclear why.

On Wednesday, Luis Calle, vice president of Operations, News and Sports for Caracol Television, one of the owners of GenTV, confirmed to El Nuevo Herald the show will not return.

“We ended our relationship with Maria Elvira," Calle said. “We wish the best that one can to a person that has the professional and humanitarian values that Salazar possesses.”

Salazar, one of the most recognizable faces in Hispanic television in Miami, is apparently a victim of a confusing contractual triangle, involving two local television stations and MundoFox Broadcasting, a new national Spanish-language network.

On her Facebook page, Salazar said: “This has taken the channel’s South Florida audience, and those who work for it, by surprise. I feel bad that many of you will feel tricked by Canal 8 for changing its programming without notice.”

Salazar had previously hosted a show on MegaTV since 2006, but it ended on 2011.

Read More..

Apple’s iPhone disappointment fans doubt on growth

SAN FRANCISCO (Reuters) – Apple Inc missed Wall Street’s revenue forecast for the third straight quarter after iPhone sales came in below expectations, fanning fears that its dominance of the mobile industry was slipping.

Shares of the world’s largest tech company fell 10 percent to $ 463 in after-hours trade, wiping out some $ 50 billion of its market value – nearly equivalent to that of Hewlett-Packard and Dell, combined.

On Wednesday, Apple said it shipped a record 47.8 million iPhones in the December quarter, up 29 percent from the year-ago period. But that lagged the 50 million that analysts on average had projected.

Expectations heading into the results had been subdued by news of possible production cutbacks by some component suppliers in Asia, triggering fears that demand for the iPhone, which accounts for half of Apple‘s revenue, and the iPad could be slowing.

But many investors clung to hopes for a repeat of years of historical outperformance, analysts said.

“It’s going to call into question Apple‘s dominance in the space. It’s still one of the strong players, the others being Samsung and Google. It’s still a two-horse race, but Android continues to grow rapidly,” said Sterne Agee analyst Shaw Wu.

“If you step back a bit, it’s clear they shipped a lot of phones. But the problem is the high expectations that investors have. Apple‘s conservative guidance highlights the concerns over production cuts coming out of Asia recently.”

Apple projected revenue of $ 41 billion to $ 43 billion in the current, second fiscal quarter, lagging the average Wall Street forecast of more than $ 45 billion.

Fiscal first quarter revenue rose 18 percent to $ 54.5 billion, below the average analyst estimate of $ 54.73 billion, though earnings per share of $ 13.81 beat the Street forecast of $ 13.47, according to Thomson Reuters I/B/E/S.

Apple also undershot revenue targets in the previous two quarters, and these results will prompt more questions on what Apple has in its product pipeline, and what it can do to attract new sales and maintain its growth trajectory, analysts said.

Net income of $ 13.07 billion was virtually flat with $ 13.06 billion a year earlier on higher manufacturing costs. The year-ago quarter also had an extra week compared to this year.

Gross margins consequently slid to 38.6 percent, from 44.7 percent previously.

“You can’t just keep rolling out iPhones and iPads and think that everybody needs a new one,” said Jeffrey Gundlach, who runs DoubleLine Capital LP, the $ 53 billion bond firm. “The mini? What is that all about? It is a slightly smaller iPad — so what? So that is our new definition of innovation?”

“There are plenty of competitors like Samsung and other legitimate competitors like them,” added Gundlach, one of the highest-profile Apple bears. He maintains a $ 425 price target.

Shares of several of Apple‘s suppliers crumbled. Chip suppliers Skyworks and Cirrus Logic both fell more than 6 percent. Qualcomm Inc slipped 1.8 percent.

CHINA IS NEXT BIG GROWTH DRIVER

Apple shares are down nearly 30 percent from a record high in September, in part on worries that its days of hyper growth are over and its mobile devices are no longer as popular.

Intense competition from Samsung‘s cheaper phones – powered by Google’s Android software – and signs that the premium smartphone market may be close to saturation in developed markets have also caused a lot of investor anxiety.

Meanwhile, sales of the iPad came in at 22.9 million in the fiscal first quarter, roughly in line with forecasts.

On the brighter side, Chief Financial Officer Peter Oppenheimer told Reuters that iPhone sales more than doubled in greater China – a region that Apple Chief Executive Tim Cook has vowed to focus on as its next big growth driver.

The company will begin detailing results from that country going forward. Revenue from the region totaled $ 7.3 billion, up 60 percent from the year-ago December quarter.

“These results were OK, but they definitely raised a few questions,” said Shannon Cross, analyst with Cross Research. “Gross margin trajectory looks fine so that’s a positive and cash continues to grow. But I think investors are going to want to know what Apple plans to do with growing cash balance.”

“And other questions are going to be around innovation and where the next products are coming from and what does Tim Cook see in the next 12 to 18 months.”

ADDRESSING PRODUCTION RUMORS

In an unusual move for Apple, which typically does not respond to speculation, Cook addressed the production cutback rumors at length on the conference call and questioned the accuracy of rumors about its plans.

Media reports earlier this month said the company is slashing orders for iPhone 5 and iPad screens and other components from its Asian suppliers.

“Even if a particular data point were factual, it would be impossible to accurately interpret the data point as to what it meant for our overall business, because the supply chain is very complex,” he said, adding that Apple has multiple sources for components.

“Yields might vary. Supplier performance can vary. The beginning inventory positions can vary. There’s just an inordinately long list of things that would make any single data point not a great proxy for what’s going on,” he said.

Apple‘s initial iPhone and iPad mini sales were hurt by supply constraints, but Cook expects supply to balance demand for the iPad mini this quarter. He also acknowledged that iPad was cannibalizing its high-margin Macintosh computers, but said it was a huge opportunity for the company.

“On iPad in particular, we have the mother of all opportunities here, because the Windows market is much, much larger than the Mac market is,” he said. And I think it is clear that it’s already cannibalizing some.”

In another departure from tradition, Apple intends to tweak the way it both reports results and publishes forecasts.

Apart from breaking out results from China, the company also will no longer provide a single revenue or gross margin outlook. From Wednesday, it began providing the range it expects to hit, rather than the often-ludicrously conservative estimates that Apple was once notorious for.

The new policy took many by surprise.

“Before people could always ignore the guidance,” said Dan Niles, Chief Investment Officer of AlphaOne Capital Partners, LLC. “Apple is telling investors that they need to pay attention to the guidance and you can’t ignore it, which is basically what we all did in the past.”

(Additional reporting by Alistair Barr and Alexei Oreskovic in San Francisco and Jennifer Ablan in New York; Editing by Bernard Orr and Edwin Chan)

Tech News Headlines – Yahoo! News

Title Post: Apple’s iPhone disappointment fans doubt on growth
Url Post: http://www.news.fluser.com/apples-iphone-disappointment-fans-doubt-on-growth/
Link To Post : Apple’s iPhone disappointment fans doubt on growth
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment

Read More..

Shakira's Boyfriend Gerard Pique Posts First Baby Pic

Shakira and Gerard Pique welcomed their first child, Milan Pique Mebarak, yesterday and he's already jumping into the world with both feet.

RELATED: Extravagant Celebrity Baby Names

"Milan's feet," Pique wrote, captioning a WhoSay photo on Wednesday. In the picture below, the baby is sporting a pair of clean white Nikes with his name on them.

Mother and child were said to be in "excellent health" after the birth yesterday in Barcelona, Spain.

Before going into labor, Shakira tweeted fans, asking that they "accompany [her] in [their] prayers on this very important day of [her] life."

Gerard Pique on WhoSay

Read More..

This time, Einhorn is ‘Einhorned’

David Einhorn should have had the courage of his convictions.

Einhorn told investors on Tuesday that he had been profitably short Herbalife last year, confirming months of speculation that he had bet against the controversial nutritional supplements company.

Sources told The Post that Einhorn had shorted Herbalife earlier in the year. But Einhorn bailed before he could benefit fully.

Herbalife had been falling since May, when Einhorn first questioned Herbalife execs about the company’s disclosures during a conference call.

Sources said that Einhorn covered his Herbalife short well before rival hedge fund manager Bill Ackman launched his $1 billion short attack on the company in December, driving the shares down as much as 40 percent.

Einhorn’s early exit caused him to miss out on some big gains. His Greenlight Capital hedge fund fell 2.7 percent during December.

In contrast, Ackman’s Pershing Square gained 5.9 percent that month, half of it from the Herbalife short. Ackman was up 13.3 percent in 2012 — far outdistancing Greenlight Capital’s 7.9 percent gain.

The news that Einhorn had shorted Herbalife sent the stock down 2.5 percent yesterday, even though the hedgie said he is no longer short.

Einhorn’s usual ability to crush a stock with one of his short calls, a process known as getting “Einhorned,” didn’t help him last year.

In a year-end letter to investors, Einhorn said the average short in his portfolio rose 10 percent last year.

Einhorn’s lackluster 2012 performance was due in large part to his short on Green Mountain Coffee Roasters, which rose 74 percent, wiping out Greenlight’s 2012 profits on the position. Its long bet on Apple also stung.

“Our coffee was too hot, our apple was bruised,” Einhorn wrote in the letter.

Apple’s decline from $677 to $532 forced the firm to give back “all its third-quarter gains and then some,” Einhorn wrote.

mcelarier@nypost.com

Read More..

Miami Dolphins slam Norman Braman, Marlins Park deal

The Miami Dolphins ramped up their public campaign for a tax-funded stadium renovation this week, buying full-page ads against their top critic and trying to distance the plan from the unpopular Marlins deal.

The team bought an ad in Tuesday’s Miami Herald and El Nuevo Herald knocking auto magnate Norman Braman’s criticism of the Sun Life Stadium deal, which would have Florida and Miami-Dade split the costs with owner Stephen Ross for a $400 million renovation. The Dolphins would pay at least $201 million, with taxpayers using state funds and a higher Miami-Dade hotel tax to pay $199 million.

In a fact sheet sent to media Tuesday morning, the Dolphins listed ways their deal differs from the 2009 Marlins deal. First: Ross, a billionaire real estate developer, would use private dollars to fund at least 51 percent of the Sun Life effort, compared to less than 25 percent from Marlins owner Jeff Loria. Second, Sun Life helps the economy more than the Marlins park does.

“Just because the Marlins did a bad deal doesn’t mean we should oppose a good deal where at least a majority of the cost is paid from private sources and more than 4,000 local jobs are created during construction alone,” the fact sheet states. And while the Dolphins’ Miami Gardens stadium has hosted two Super Bowls since 2007 and is in the running for the 2016 game, “Marlins Stadium does not generate the ability to attract world-class sports events -- other than a World Series from time to time depending on the success of the team.”

NFL teams play eight home games a year if they don’t make the playoffs, while baseball teams have 81.

Miami and Miami-Dade built the Marlins a $640 million stadium at the site of the Dolphins’ old home at the Orange Bowl in Little Havana. The Marlins contributed about $120 million and agreed to pay between $2.5 million and $4.9 million a year for 35 years to pay back $35 million of debt the county borrowed for the stadium. As a publicly owned stadium, the Marlins ballpark pays no property taxes. Most of the public money came from Miami-Dade hotel taxes, along with $50 million of debt tied to the county’s general fund.

Sun Life is privately owned and pays $3 million a year in property taxes to Miami-Dade. It currently receives $2 million a year from Florida’ s stadium program, a subsidy tied to converting the football venue to baseball in the 1990s when the Marlins played there. The Dolphins also paid for a second full-page ad with quotes from leading hoteliers in Miami-Dade endorsing the stadium plan. Among them: Donald Trump, whose company recently purchased the Doral golf resort. “Steve Ross’ commitment to modernize Sun Life Stadium -- while covering most of the construction costs -- is the right thing for Miami-Dade,’’ the ad quotes Trump as saying.

Also on Tuesday, Ross and team CEO Mike Dee sent a letter to Miami-Dade Mayor Carlos Gimenez and county commissioners requesting negotiations over the stadium deal. The letter said the deal Ross unveiled last week is a “baseline for debate” and asked for talks. The letter also urged the commission to adopt a resolution proposed by Commissioner Barbara Jordan endorsing the state bill that would allow taxes for Sun Life. The resolution is on the agenda for Wednesday’s commission meeting.

Read More..

Miami police: Fight over child ends in fatal crash

A fatal car crash in Allapattah began, Miami police said Tuesday, as a fight between two women over a child, with one woman grabbing the child and jumping into the speeding vehicle that might have caused the collision.

The night began with a 15-month-old girl, who was living with her father and his girlfriend, neither of whom police identified.

The mother of the child, Mylife Rivera-Vasquez, 20, of Homestead, persuaded the girlfriend on Monday to meet her at Northwest 17th Avenue and 28th Street so she could see her daughter, Miami police said.

As the girlfriend waited in that area with the girl about 8 p.m., Rivera-Vasquez and several other people arrived, police said, and punched the girlfriend several times.

During the melee, Rivera-Vasquez grabbed her daughter and got into a Lincoln Town Car that drove away.

The Town Car sped south on Northwest 21st Avenue, police said, and the girlfriend appeared to have followed in another car.

But as it approached Northwest 20th Street, the Town Car crashed into a Chevrolet Tahoe.

The Tahoe had been westbound on Northwest 20th Street. Police said the Town Car failed to yield the right of way.

Two of the three people in the Town Car — the driver and the 15-month-old — were thrown from the vehicle, police said. All three were taken to Jackson Memorial Hospital’s Ryder Trauma Center.

The driver, Kristofer Daniel Astorga, 22, died shortly after arriving at the hospital, police said.

Rivera-Vasquez and her child, Juliet Rivera, were both in critical condition, police said.

Lt. Ignatius Carroll, spokesman for Miami Fire-Rescue, told Miami Herald news partner WFOR CBS 4 that the little girl hadn’t been secured in a child car seat.

The Tahoe’s driver was in good condition at Jackson, and a passenger in that car was treated at the scene for minor injuries. Neither was identified Tuesday.

On Tuesday, police said Rivera-Vasquez had been charged with two counts of simple battery.

El Nuevo Herald Staff Writer Melissa Sanchez contributed to this report.

Read More..