Tech Biz Roundup: Yahoo’s New CEO, Apple Manages Expectations
Interim Yahoo (NASDAQ:YHOO) Ross Levinsohn has been invited to stay on as the permanent chief executive by the new CEO Fred Amoroso, according to sources. Levinsohn spoke to employees on Monday, when he remarked that it’s too early to discuss strategy, but ruled out major changes subsequent to the recent Scott Thompson reorganization.
Apple (NASDAQ:AAPL) is trying to adjust expectations for its third fiscal quarter, which will be the runup to its next iPhone intro, and also to deal with a high channel inventory. To that effect, the firm has dramatically reduced its phone orders by 20 to 25 percent from the previous quarter levels, says Sterne Agee’s Shaw Wu, who conducted supplier checks. The order cutback could signal a third quarter sales range of only 26 to 28 million, which would miss consensus of 30 to 31 million, but Wu also thinks that iPad orders will be increased. In the meantime, other indications are that Apple could experience a significant pickup in orders during the second half. According to Digitimes, the company has secured half the mobile dynamic random access memory capacity at an Elpida plant, in order to support upcoming intros, the news coming one month following an announcement by Cirrus Logic (NASDAQ:CRUS) that reported it was taking out a $100 million credit line to help finance product launches that are widely believed to be Apple’s.
Shares of A123 Systems (NASDAQ:AONE), are jumping post-earnings, after languishing during the last year from a slew of problems. Even though the firm’s quarter results seriously missed estimates, and it cut its 2012 guidance on Friday, the news that the battery defect that led to a devastating recall has been solved, and that its Federal grant worth $120 million, has been extended for two years seems to be the silver lining.
Investing Insights: Google’s Android is Going for the Gold in 2012.
Wireless customer satisfaction towards AT&T (NYSE:T) increased by 5 points to 69, says the ACSI’s annual survey, which puts the communications giant almost on par with Verizon Wireless (NYSE:VZ), whose score of 70 represents a 3-point slide. Meanwhile, Sprint (NYSE:S) lost a point which brought it down to 71, and Apple (NASDAQ:AAPL) logged the top score among cell phone vendors at 83, while Research In Motion (NASDAQ:RIMM) hit the bottom with a 69.
New directors are in Facebook’s (FB) future, as the company works with a recruiting firm to find them. It’s hoped that at least one woman will join the board, says Bloomberg, that currently includes Mark Zuckerberg, Washington Post CEO Donald Graham, VCs Jim Breyer and Peter Thiel, Netflix CEO Reed Hastings, and UNC president emiritus Erskine Bowles. Insiders note, however, that the board has little practical power, given Zuckerberg’s preferences for doing what he wants. At the same time, General Motors (NYSE:GM) says it will cease advertising on Facebook, after finding scant influence on consumers coming from its paid ads. The auto company spends approximately $40 million on its Facebook presence, and around a quarter of that goes to advertising.
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