440.14 +2.64 (0.60%)
After hours: 7:59PM EDT
|Bid||440.14 x 2200|
|Ask||440.20 x 800|
|Day's range||436.43 - 449.85|
|52-week range||199.67 - 457.65|
|Beta (5Y monthly)||1.23|
|PE ratio (TTM)||33.18|
|Earnings date||28 Oct 2020 - 02 Nov 2020|
|Forward dividend & yield||3.28 (0.75%)|
|Ex-dividend date||07 Aug 2020|
|1y target est||425.17|
(Bloomberg) -- Apple Inc. has gone carbon neutral. But in order to say the same for its flagship iPhone, it’s going to need help from Taiwan.More than three-quarters of the emissions that come from making Apple’s ubiquitous products come from outside suppliers, according to the company’s Environmental Progress Report. That includes Taiwanese electronics giants like TSMC and Foxconn, which still get about 90% of their power from non-renewable sources, according to company reports.That’s changing though. The firms are installing solar panels and buying power from offshore wind farms in line with Apple’s target of having all of its products be carbon-neutral by 2030. It underscores how climate pressure is increasingly coming not only from activists, but from within company’s own supply chains.“What Apple and other companies are trying to do is contribute to meeting Paris climate targets by decarbonizing their own footprints and making it a precondition for their partners and suppliers to use renewable energy,” said Prakash Sharma, director for the energy transition practice at consultancy Wood Mackenzie Ltd. “It’s gaining momentum because more and more companies are moving in that direction.”So far 71 of Apple’s hundreds of suppliers have committed to using only renewable energy, about 8 gigawatts worth, or more than the peak power demand for the entire nation of Singapore. Once completed, these commitments will avoid over 14.3 million metric tons of greenhouse gases annually— the equivalent of taking more than 3 million cars off the road each year.Taiwanese companies make up an outsize proportion of Apple’s suppliers worldwide because of their dominance of sectors such as contract manufacturing and made-to-order semiconductors. Linchpins of Apple’s manufacturing machine include Taiwan Semiconductor Manufacturing Co., which exclusively makes cutting-edge chips for Apple’s iPhones and iPads in Taiwan, and Hon Hai Precision Industry Co., also known as Foxconn, which assembles more than 100 million iPhones annually. Both firms recently agreed to join the renewable energy drive.Wind and solar power can be as cheap as fossil fuels, but they don’t produce at all hours of the day, so it isn’t feasible for major factories to run directly on renewables alone. Improvements in battery technology might soon change that, but at the moment Apple isn’t pushing its suppliers in that direction.Instead, Apple wants them to invest in enough renewable energy in their home region to cover their power use. That way even if a factory requires coal-fired electricity in the middle of the night, it will have invested in enough wind or solar to keep an equivalent amount of coal from being burned at other times.For Foxconn, that means installing solar panels on the roofs and of its campuses in places like Henan province in China, where coal is still the dominant source for power. The company had installed 224 megawatts of clean energy by the end of 2019, up from 33 in 2017. But it still has a long way to go, as solar power and renewable energy credits amounted to only about 10% of its power use last year, the company said in its sustainability report.TSMC, which used renewable energy and credits for 6.7% of its power in 2019, has committed to producing renewable energy for its entire operations by 2050. It signed a deal last month with Orsted A/S to buy all of the power from a 920-megawatt wind farm the Danish company is developing off the coast of Taiwan, in what is the world’s largest private renewable power deal. The deal means TSMC now actually has agreements to buy more clean energy than Apple, according to BloombergNEF.The company’s efforts have been aided by a massive Taiwanese government plan to transform the country’s energy mix away from coal and nuclear and toward renewables and natural gas. The Orsted deal, for example, came after the wind-maker had established a major presence in the company thanks to several government-backed deals for offshore wind farms.“Growing sustainability initiatives by major companies are definitely making a dent in their supply chains,” said Jonathan Luan, a Beijing-based analyst with BloombergNEF. “Some companies have been able to change market rules to achieve their goals, like in Taiwan.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- SoftBank Group Corp. is targeting investments of more than $10 billion in public stocks as part of a new asset management arm, far exceeding the initial holdings that founder Masayoshi Son outlined to shareholders on Tuesday, people familiar with the initiative said.The tally could reach into the tens of billions, said one of the people, all of whom asked not to be identified because the plans are private.Son, the chief executive officer, unveiled the investment arm in a conference call to discuss earnings on Tuesday. He said the unit has about $555 million in capital. However, the amount is seen as a placeholder, people familiar with the project said; 555 is slang in Japanese gaming culture meaning “go, go, go.”The asset management team is led by Akshay Naheta, a senior vice president in Abu Dhabi, the people said. The group has been quietly amassing multibillion-dollar stakes in American Big Tech companies over the past few months, the people said.On Tuesday, Son said SoftBank had acquired holdings in some of the so-called FAANG stocks. FAANG refers to a group of five large tech companies: Facebook Inc., Amazon Inc., Apple Inc., Netflix Inc. and Google, whose parent company is Alphabet Inc.The Japanese company didn’t disclose the size of these positions. The investments were made using financing structures that can prevent SoftBank from showing up in public records as a direct shareholder, said the people familiar with the initiative.A representative for SoftBank declined to comment. “As an investment company, we need to explore various angles and scope. But our focus is still on companies driving the information revolution,” Son said during the earnings presentation. “This is the purpose of our company.”In recent years, SoftBank has painted itself as a champion of innovative startups, led by its $100 billion Vision Fund. That strategy faltered after WeWork and several other high-profile flameouts. But SoftBank’s dealings with public stocks have notched some wins over the past three years. It profited from investments Charter Communications Inc. in early 2018 and in U.S. chip designer Nvidia Corp., which was worth 398 billion yen when it was sold last year.Less successful was a complicated investment in the now-infamous German payments company Wirecard. The bet profited select SoftBank employees and sovereign wealth fund Mubadala, an investor in the Vision Fund, but the collapse of Wirecard in recent months caused analysts to question the nature of the investment.The development of a public-equities vehicle was driven partly by a long-held desire by various executives at SoftBank to pursue asset management. Following its $3.3 billion takeover of alternative-asset manager Fortress Investment Group LLC, SoftBank also considered buying a stake in Swiss Re, the world’s second-biggest reinsurer.SoftBank is in the process of offloading 4.5 trillion yen in legacy assets, including stock in Alibaba Group Holding Ltd., T-Mobile US Inc. and its domestic telecom unit. Some of the capital raised will fund the asset management arm, the people said. SoftBank said it will own 67% of the asset management group, and Son will personally own the rest.The new unit reflects the revived ambitions of Son. The founder had said in May that SoftBank was unlikely to secure outside investors for a second Vision Fund after problems with the first. But in the upbeat financial results Tuesday, Son expressed readiness to accelerate a companywide shift from telecom to investing. “Our strategy hasn’t changed,” Son said. “We still plan on unicorn hunting with Vision Fund two, three and so on.”SoftBank’s investments in FAANG stocks are buoyed by a tech rally in the market. Uber Technologies Inc. rebounded 11% last quarter after tumbling in the first and is now trading at close to the $33 price SoftBank paid in early 2018. The performance gives a strong boost to the Vision Fund portfolio, which is heavily weighted toward ride-hailing companies, also including Didi Chuxing in China, Grab in Southeast Asia and Ola in India.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Qualcomm Inc.’s lucrative patent licensing business lives on, after a court rejected a requirement that the company renegotiate billions of dollars worth of agreements with smartphone makers.The chipmaker won a major victory Tuesday in a federal appeals court, which ruled that a judge was wrong to side with the Federal Trade Commission in 2019 in finding that Qualcomm had violated antitrust law. The appeals court also vacated an order that the company redo licensing accords with smartphone makers like Apple Inc. and Samsung Electronics Co. Such licenses generated $4.6 billion in revenue for Qualcomm last year.Qualcomm climbed 2.3% on the news to close at $108.83 in New York trading.“The court’s ruling is disappointing and we will be considering our options,” FTC Bureau of Competition Director Ian Conner said in a statement.The case won’t return to the trial judge, but the FTC can ask that it be reconsidered by the full appeals court. If Tuesday’s ruling stands, it’ll represent the end of years of legal and regulatory entanglements for the company. In July, Qualcomm announced that China’s Huawei Technologies Co. has signed a licensing deal and paid up on withheld patent fees. That agreement has brought Huawei, the last major holdout, into the list of Qualcomm’s customers.“The court of appeals unanimous reversal, entirely vacating the district court decision, validates our business model and patent licensing program and underscores the tremendous contributions that Qualcomm has made to the industry,” Don Rosenberg, executive vice president and general counsel for Qualcomm, said in an email.Kevin Cassidy, an analyst at Rosenblatt Securities, said the ruling removes an overhang on Qualcomm’s shares.“We see the combination of another successful defense of its business model and the recent licensing agreement with Huawei as giving investors an additional degree of comfort as a long-term investment,” he said.Read More: Qualcomm Shares Rise on Strong Forecast, Huawei AgreementQualcomm is the largest maker of chips that run the computer functions in smartphones and connect them to cellular networks. That business provides it with the bulk of its revenue. The majority of profit comes from licensing patents that underpin how all modern phone systems work. It charges fees that are calculated as a percentage of the selling price of handsets and paid by the phone makers.In May 2019, U.S. District Judge Lucy Koh in San Jose, California, ruled that the company was charging phone makers “unreasonably high” licensing fees and thwarting competition. She ordered the chipmaker to negotiate licensing agreements with customers “in good faith” and without threatening to cut off access to its products. Koh’s order was put on hold pending appeal.Qualcomm argued on appeal that its licensing business benefits the whole industry by speeding up improvements to smartphones and the services they support. The company emphasized that it doesn’t stop rival chipmakers from accessing its technology. Instead, fees are charged to phone makers who pay a percentage of the selling price of each handset.The FTC case, filed in 2017, is among numerous challenges to Qualcomm’s practices from competitors, customers and regulators worldwide. The San Diego-based company has weathered most of those, winning in court or settling, and maintained its right to charge the fees. Koh’s ruling was the biggest remaining challenge to the licensing model.In a rare split among antitrust regulators, the U.S. Justice Department lined up with Qualcomm against the FTC , arguing that Koh’s ruling could undermine American leadership in technologies including 5G wireless networks.The appeals court said in its 56-page ruling ruling that Koh “went beyond the scope” of antitrust law. Qualcomm’s “no license, no chips” policy does “not impose an anticompetitive surcharge on rivals’ modem chip sales,” nor does it undermine competition in the market.While the Justice Department’s arguments that Qualcomm is critical to America’s supremacy in 5G weren’t mentioned in the opinion, the court noted Qualcomm’s “significant contributions to the technological innovations underlying modern cellular systems.”Qualcomm has argued that the regulatory actions against it around the world -- including in Korea and Taiwan -- were initiated at the urging of customers who were seeking an advantage in contract negotiations or to avoid paying for its inventions. Those customers are now licensees, it said.“Even before today, those companies for the most part, had already demonstrated that they were basically willing without further attempts like this to engage with us in license negotiations,” Rosenberg said in an interview. “They’ve all signed up.”The case is Federal Trade Commission v. Qualcomm Inc., 19-16122, U.S. Court of Appeals for the Ninth Circuit (San Francisco).(Updates with Qualcomm general counsel’s comment in final paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.