respectable morning, and welcome to the June 13 version of in search of Alpha's Eye on Tech newsletter.
Microsoft's smaller/thinner Xbox One S gets leaked - ahead of a Monday experience at the gaming industry's E3 conference, The Verge has leaked pictures and specs for the Xbox One S, a smaller edition of the one that appears to have a 2TB tough force, support HDR gaming content, and deal with 4K video playback (however now not 4K gaming, which is expected to be offered by means of a 2017 Xbox). The Verge adds it become previously advised the One S may be 40% smaller than the usual One.
Microsoft's Xbox One S. supply: The Verge.
The leak arrives shortly after Sony (NYSE:SNE) validated or not it's launching a 4K-ready PS4 this year, while adding it is going to charge more than the commonplace PS4 and might not be proven off at E3. The PS4 has outsold the Xbox One, and with Sony set to beat Microsoft (NASDAQ:MSFT) to the punch in aiding 4K gaming and (now not counting console-to-computer streaming) a VR headset, that trend appears set to proceed. AMD (NASDAQ:AMD) is the CPU/GPU employer for each consoles.
Bloomberg: Intel modems might be used in AT&T and some remote places iPhones, Qualcomm still has Verizon and China - Qualcomm (NASDAQ:QCOM) fell 2.1% following the record amid a 1.three% Nasdaq drop, while Intel (NASDAQ:INTC) outperformed by rising 0.3%. whereas it became already broadly anticipated that Apple (NASDAQ:AAPL) will partly rely on Intel to satisfy its iPhone 7 modem wants after years of fully counting on Qualcomm for iPhone and iPad modems, Bloomberg's report introduced some super particulars. I n certain, its fact that Intel chips will go into iPhones supposed for AT&T's network runs counter to speculation Intel would simplest be utilized in emerging markets and other locales where 4G wasn't greatly deployed and/or where 4G networks hadn't been upgraded to guide LTE superior.
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Intel's XMM 7360 modem. likely going into some iPhone 7 fashions.
The reality Qualcomm's modems will nonetheless be used for Verizon's community and in China might should do with the company's event in imparting modems used on 3G EV-DO networks (used with the aid of Verizon, sprint (NYSE:S), and China Telecom (NYSE:CHA), amongst others) and 3G TD-SCDMA networks (used by means of dissimilar chinese carriers). The Intel modem used within the iPhone 7 is probably going the XMM 7360 (450Mbps peak down load speed), while the Qualcomm modem is probably going the Snapdragon X12 (600Mbps height).
Qualcomm could be able to win returned share subsequent yr with its Snapdragon X16 modem, that may attain a 1Gbps peak download pace. Intel's subsequent-gen XMM 7480 modem, although presenting a few advancements relative to the XMM 7360, still most effective tops out at 450Mbps. then again, Intel is working so as to add EV-DO guide for its modems by way of assets received from Taiwanese chipmaker by means of expertise.
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Qualcomm's subsequent-gen Snapdragon X16 modem
Apple bought 231.5M iPhones in 2015. With Qualcomm probably getting (judging through teardown estimates) over $20 per unit for its modems and just a few complementary chips, the business may additionally have obtained ~$5B in iPhone-related revenue closing year. there may be a good chance Intel undercut Qualcomm to win Apple's business.
Symantec is buying internet safety hardware/utility company Blue Coat for $4.65B - Symantec (NASDAQ:SYMC) had advised it could use probably the most $5.3B in post-tax proceeds it bought from the sale of its Veritas storage utility unit to make enterprise safety acquisitions. all the same, the measurement of this deal is probably going to shock many. Blue Coat, which had been set for an IPO, is being got for a comparatively steep multiple of 6.2x trailing earnings. Symantec, whose multiples have been harm by using right-line woes, sported an commercial enterprise value equal to simply 1 .9x trailing earnings as of Friday's close. As part of the deal, Blue Coat CEO Greg Clark will turn into Symantec's CEO, thus ending the latter's look for a new chief.
The buy lowers Symantec's dependence on a purchaser security company (calendar Q1 salary -7% Y/Y to $406M) hurt by competitors from the likes of Microsoft and AVG (NYSE:AVG), and provides a strong hardware footprint for an business protection business (Q1 profits -5% to $467M) that has been declining while the likes of Palo Alto Networks (NYSE:PANW), FireEye (NASDAQ:FEYE), Proofpoint (NASDAQ:PFPT), and Qualys (NASDAQ:QLYS) submit potent double-digit growth. Blue Coat's safety items - they consist of net gateway, web app firewall, and content material-evaluation appliances, as well as digital (utility-based) home equipment and cloud-based services for securing web and cloud content - complement Symantec's mainstay endpoint insurance policy and data loss prevention application.
on the other hand, the expense of the acquisition may cause some sticker shock. Blue Coat proprietor Bain ought to be fairly satisfied with the expense, given it paid simplest $2.4B for Blue Coat remaining year.
desirable eastern cellular messaging company Line information for IPO - more advantageous late than on no account? back in 2014, Line (Pending:LN) parent Naver (OTC:NHNCF) delayed an IPO it reportedly hoped would provide Line a ~$10B valuation. Now, the WSJ suggests a $5B+ valuation may well be on tap as Line info for listings in NYC and Tokyo.
a major slowdown in consumer increase - the result of WhatsApp, fb Messenger, and Tencent's (OTCPK:TCEHY) WeChat being dominant in so tons of the realm - has a whole lot to do with reduce IPO expectations. Line's monthly energetic users ("MAUs") handiest rose by 13M Y/Y in Q1 to 218M. With MAUs having risen via 7M in Japan to 61M and 21M in Taiwan, Thailand, and Indonesia to 91M, the company lost users elsewhere.
nevertheless, thanks in giant half to a leading place in the lucrative jap market, Line did put up-2015 revenue of $1.07B (up 39% on a yen foundation) and Q1 earnings of $298M (up 19% on a yen groundwork). in comparison with fb (NASDAQ:FB), Line (like Tencent) is relatively some distance alongside in monetizing its messaging apps; the enterprise does so by way of ads, internally-developed and third-party games, stickers, and e-commerce capabilities.
Hypothetically, if fb produced half as plenty as revenue per Messenger MAU and 1 / 4 as lots per WhatsApp MAU as Line does from its MAUs - one has to anticipate lower ARPUs given Messenger and WhatsApp's bases skew more towards emerging markets, and WhatsApp prides itself on its no-frills method - it might still get over $three.5B/12 months in salary from Messenger and WhatsApp. the first Messenger ads will be arriving quickly.
reviews: AT&T bids ~$5B for Yahoo, Verizon's reduce bid excludes patents/precise estate - Bloomberg says AT&T (NYSE:T) and a group led by way of Dan Gilbert/backed by Warren Buffett are every bidding ~$5B for Yahoo' s (NASDAQ:YHOO) "core" enterprise, patents, and actual estate. Re/code, meanwhile, offers some valuable context to a Thursday CNBC record that observed Verizon (NYSE:VZ) most effective bid ~$three.5B for the one-time web significant: Verizon's bid excluded the patents and true estate.
Re/code provides Yahoo values its patents round $3B and its actual estate round $1B, though others assign reduce valuations to each and every (~$1B for the patents). If Yahoo is confident about getting effective presents for its patents and real property - the enterprise is reportedly running a separate public sale for the previous - Verizon could nevertheless be smartly-placed. As a reminder, Yahoo (because of its Alibaba/Yahoo Japan stakes) is worth $35B, now not $5B.
Reuters: Amazon plans to supply the realm one more $10/month streaming tune carrier - In case the $10/month subscription music services provided by Spotify (deepest:tune), Apple , Google/YouTube, Tidal, and Deezer all go away you unsatisfied, Amazon (NASDAQ:AMZN) could have whatever for you. Reuters says Jeff Bezos & Co. are prepping a rival provider, whereas adding it's doing so because it "believes a comprehensive tune provider is crucial to its bid to be a one-stop store for content and goods." Pandora's (NYSE:P) pending on-demand streaming carrier - it's being launched as listener boom for the company's net radio carrier flatlines - w ill clearly haven't any shortage of competition.
Amazon already bundles a streaming music/offline down load service featuring a comparatively constrained (but still massive) library with major subscriptions. Given how driven the enterprise is to grow its top base, or not it's possible Amazon could supply best subs a discount for the new tune service.
Reuters: Alipay father or mother Ant fiscal invests $35M for 20% stake in financial records firm Shanghai Suntime - Ant, which recently raised $four.5B at a mentioned ~$60B valuation, is reportedly investing in Suntime to additional expand its fiscal functions choices. even though most effective customary for Alipay's online/cell payment services, Ant's choices now additionally encompass wealth administration items, small company loans, and assurance. whereas Alipay is believed to be somewhat ecocnomic, the equal does not grasp for a lot of of the different functions.
Alibaba (NYSE:BABA), which stands to personal a third of Ant after it goes public, has dipped its toes into economic content material as well. final year, the enterprise invested over $190M in financial television/newspaper proprietor China enterprise news to "create a fiscal facts and suggestions capabilities business so one can support chinese language small and medium organizations faucet a wealthy mine of fiscal records."
Google Fiber explores the usage of gigabit Wi-Fi for the closing mile - Chairman Eric Schmidt says Google (GOOG, GOOGL) is considering of using Wi-Fi links delivered by means of excessive-frequency/millimeter-wave spectrum - it offers more bandwidth than ordinary cell spectrum, however has less range and might combat to penetrate walls - to convey gigabit broadband with no need to undertake the costly and time-consuming effort to bring fiber internal homes, residences, and places of work.
a lot of carriers trying to use 5G for ultimate-mile broadband additionally plan to rely on excessive-band spectrum. Likewise, facebook wants to allow multi-gigabit broadband in dense city areas by means of Terragraph, a instant expertise relying on base stations operating in the 60Ghz. band and positioned every 200-250 meters. There are still technical challenges to determine, however Moore's legislation (or what's left of it) and antenna advances seem more likely to make remaining-mile gigabit wireless commercially manageable inside a number of years. In Google's case, that may do an awful lot to extra the enterprise's goal of considerably providing Fiber in primary U.S. metro are as, and develop into a much bigger headache for incumbent broadband ISPs.
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Gigabit instant could help Google unexpectedly extend Fiber's availability
NPD: U.S. physical retail video video game income rose 19% Y/Y in can also - After losing an estimated 22% in April, new titles helped U.S. actual video game earnings fare much stronger in can also. Sony's Uncharted led the manner, and one more Sony title (MLB sixteen: The demonstrate) got here in at #9. Take-Two (NASDAQ:TTWO) additionally had a superb month, with Battleborn, Grand Theft Auto V, and NBA 2K16 coming in at #4, #5, and #7. Activision's (NASDAQ:ATVI) Overwatch and speak to of duty: Black Ops III have been respectively #three and #eight. digital Arts (NASDAQ:EA) become shut out of the top-10, and console revenue fell 10%.
NPD's numbers don't cover digital video game, subscription, or content sales. PwC estimates U.S. digital console game earnings will upward push from $2.01B in 2015 to $three.61B in 2020, and physical console online game salary decline from $7.6B to $6.23B over the identical time. complete computing device online game earnings is expected to rise from $three.53B to $4.78B, with digital growth more than offsetting actual online game declines.
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What to predict at Apple's WWDC conference - Apple's annual developer convention kicks off at 1PM ET on Monday (webcast), and as regular, software/services will get more consideration than hardware. along with new types of iOS and Mac OS X - the latter is anticipated to be renamed MacOS - Apple is expected to unveil an Apple song revamp, the outlet of Siri to third-birthday celebration developers, and aid for internet-based mostly Apple Pay funds.
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