Weekly Tech Business Recap: IPhone 5 Arrives, Zillow Takes on Trulia

Here’s your Cheat Sheet to the top technology business headlines from the week:

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Investors of A123 Systems, Inc. (NASDAQ:AONE) may well be happy that shares have once again popped for no apparent reason, and are now up some 50 percent on the week, selling for a penny or two below 30 cents each. It might well be, say some observers, that the shorts who control quite a bit of the company’s float are booking some profits.

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A merger between Sprint Nextel Corporation (NYSE:S) and T-Mobile is not quite firmly placed upon the horizon, thinks Goldman, as such a combined entity would own $35 billion in high-yield debt. Further, says Goldman, Deutsche Telekom Ag Ads (DTEGY.PK) might not be happy about a transaction that would face regulatory scrutiny, along with a major equity component to it. The analyst believes that an offer by Sprint for MetroPCS Communications, Inc. (NYSE:PCS) or Leap Wireless International, Inc. (NASDAQ:LEAP) would make more sense.

It’s now estimated that the next iPhone (NASDAQ:AAPL) could by itself comprise 4.4 percent of the chip industry’s sales next year, according to Doug Freedman at RBC, who also calculates that 171.7 million units will be sold in that period. Several firms are expected to benefit, including Broadcom Corporation (NASDAQ:BRCM), which could get $6.50 per iPhone; Qualcomm Inc. (NASDAQ:QCOM), which Freedman says should receive $18 per shipment; and SanDisk Corporation (NASDAQ:SNDK), which should receive $9.50 per iPhone, assuming that its NAND flash chips are used in the device.

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Digital Domain Media Group (NYSE:DDMG) has filed for bankruptcy protection following its default last week on debt repayments of $35 million in senior notes, along with the resignation of its Chairman and Chief Executive John Textor. The firm now has a total debt of $214 million, with assets at $205 million. Digital agrees to divest its main operating division, Digital Domain Productions, to the private equity firm Searchlight for $15 million, although the deal is subject to other bids. In the meantime, senior noteholders, led by Hudson Bay, will allow the company up to $20 million in debtor-in-possession financing.

Facebook (NASDAQ:FB) shares break $20 on Wednesday, in response to Mark Zuckerberg’s remarks, among which were strong hints that his company will build a search engine. In a likely reaction, Google (NASDAQ:GOOG) dipped and rebounded even as tech is up. However, if Facebook should become involved in search, Google’s gigantic user base would remain, along with billions in invested research and development, plus mountains of query data at its disposal. Separately, the latter has introduced Boutique in China, which is a local shopping application intended only for that country. This move represents the company’s attempts to obtain a larger portion of Chinese e-commerce ad spending.

Shares of the base station amplifier maker Powerwave Technologies, Inc.(NASDAQ:PWAV) go through the roof, subsequent to its reaching a credit arrangement with private P-Wave Holdings that could save the former from bankruptcy. P-Wave makes a loan of $35 million to Powerwave, and will supply an additional $15 million in requested, and also will consider requests for as much as $100 million more. Through the loan’s terms, P-Wave receives warrants to buy 2.625 million Powerwave shares at 50 cents per share

Apple’s (NASDAQ:AAPL) iPhone 5 is officially announced. The device is 7.6mm thick and weighs a mere 112 grams, which makes it 18 percent thinner and 20 percent lighter than the iPhone 4S. As was anticipated, iPhone 5 has a 4-inch retina display, A6 processor, reportedly twice as fast as the A5, and 4G gigabyte LTE support. Also as expected, pre-orders for the iPhone 5 commence on September 14th, and shipments start on the 21st, all of which might allow Apple to post an impressive amount of fiscal fourth quarter sales.

Pandora Media (NYSE:P) shares spiked in late afternoon, as Apple announced an iTunes remake without a word concerning a new Internet radio service, which rumor in a Wall Street Journal report a few days ago tumbled Pandora’s stocks.

It appears that Microsoft Corporation (NASDAQ:MSFT) still is not done with the development of Windows Phone 8, says The Verge, but is said to be “working overtime” with Nokia Corporation (NYSE:NOK) to ensure that the operating system is ready for its intro date of October 29th. For its part, Nokia would be severely impacted by a serious delay, as its Lumia 920 and 820 WP8 phones are already set to begin selling weeks after sales of the next iPhone debut. In the meantime, AT&T Inc. (NYSE:T) is said to intend to begin the sales of the 920 and 820 on Nov. 2nd.

Amazon.com, Inc. (NASDAQ:AMZN) has launched its new EC2 Reserved Instances Marketplace service, which enables customers to pay a one-time payment in order to reserve computer capacity for a fixed block of time. The service allows customers to sell their excess reserved cloud computing capacity, as well.

Yahoo! Inc. (NASDAQ:YHOO) will finalize its transaction to divest Alibaba assets in one week, says AllThingsD, but it is not yet determined whether the company will consider returning any of the bonus to investors as a special dividend or in share repurchases.

Additional features for the iPhone 5 (NASDAQ:AAPL) have been released, which include an improved rear camera containing a sapphire lens cover and reworked image processing; a reduced-in-size “lightning” dock connector; a 1080p FaceTime camera; enhanced battery life and Wi-Fi performance; wideband audio playback; and 3 microphones to improve call quality. Shares of Apple spiked moderately, but fell back. Shares of suppliers SanDisk Corporation (NASDAQ:SNDK) and Broadcom Corporation (NASDAQ:BRCM) are up modestly but Cirrus Logic, Inc. (NASDAQ:CRUS) and OmniVision Technologies, Inc. (NASDAQ:OVTI) returned to earth after a brief rise.

Nintendo Co Ltd (NTDOY.PK) will introduce its new Wii U in time for the holiday season in Japan, as it aspires to win back some gamers who have transferred to smartphone play. The Wii U controller will feature its own 6.2-inch touchscreen that can be used to play games independently of a TV screen.

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Facebook (NASDAQ:FB) removes its third-party ad exchange from beta. The firm has been hyping the early results for Facebook Exchange, which permits advertisers to deliver Facebook ads that are based upon their browsing activity on other sites, and is currently citing testimonials from clients who are experiencing higher click rates along with enhanced reach.

Qihoo 360 Technology Co. Ltd. (NYSE:QIHU) has topped Sohu.com Inc.’s (NASDAQ:SOHU) Sogou as China’s number two search engine provider only a month following its market debut, According to Citi. However, Barclays notes that number one Baidu, Inc.’s (NASDAQ:BIDU) market share stabilized during the week of August 27th to September 2nd, according to a research firm. Baidu shares have been hit on worries concerning Qihoo’s competitive threat, and the firm has responded by making difficulties for its new rival.

Is the newness wearing off the iPhone? Should Apple (NASDAQ:AAPL) be worried? A day after the iPhone 5 intro, the media calls the device a good upgrade, but that is all. Some observers see the effectiveness of the Apple rumor mill at fault.

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Zillow (NASDAQ:Z) is bringing a patent infringement suit against Trulia, just prior to the latter’s initial public offering. The company alleges that a patent related to its Zestimates feature, which uses algorithms to figure the value of a property, is being used by Trulia Estimates.

Infosys Technologies Limited (NASDAQ:INFY) Co-Chairman S. Gopalkrishnan announces that his firm might return more cash to shareholders. The company has periodically paid special dividends, and is ready for more purchases even as it’s poised to acquire Switzerland’s Lodestone Holding.

A court in Germany rules that Motorola Mobility (NASDAQ:GOOG) is infringing Apple’s “overscroll bounce” patent, and is requiring that all infringing phones and tablets be recalled. Google has already come up with a workaround for the patent, which is the same as Samsung was ruled to be infringing in Apple’s famous California win.

Stocks of companies with a strong mobile exposure, such as Nokia Corporation (NYSE:NOK), Millennial Media, Inc. (NYSE:MM), Velti (NASDAQ:VELT), and Qualcomm Inc. (NASDAQ:QCOM), outperformed Thursday, the day following the iPhone 5 (NASDAQ:AAPL) launch. Others are included in the group, with some being Apple competitors.

Microsoft Corporation (NASDAQ:MSFT) makes a gift of Surface tablets, Windows Phone 8 devices, and Windows 8 PCs to its more than 90,000 employees, in an endeavor to boost interest in its latest products.

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Shares of AT&T Inc. (NYSE:T) and Verizon Communications (NYSE:VZ) moved down in tandem Friday following Stifel’s downgrades to Hold. Ordinarily, shares of both firms have performed well this year as their wireless margins rise because of share gains, premium pricing, and declining upgrades to smartphones.

Splunk Inc. (SPLK) sees its software gaining increased demand due to the current onslaught in the amount of machine data being generated by IT gear, which the company’s software interprets. Also seen is a potential for Splunk to boost its sales with its existing customers. Shares moved up, reaching new highs Friday, following Needham beginning its coverage with a price target of $42, and a Buy.

Google Glass (NASDAQ:GOOG) remains unfinished, but David Pogue remarks that “If there’s anything at all as different and bold” as the iPhone and iPad coming along, “surely it’s Google Glass.” Not only does he call the display glasses “an absolutely astonishing feat of miniaturization and integration”, but he also praises their touchpad controls and head-tracking ability.

Apple Inc. (NASDAQ:AAPL) and its suppliers Broadcom Corporation (NASDAQ:BRCM), Cirrus Logic, Inc. (NASDAQ:CRUS), Skyworks Solutions, Inc. (NASDAQ:SWKS), and OmniVision Technologies, Inc. (NASDAQ:OVTI) outperform on Friday, subsequent to the iPhone 5’s initial stock apparently selling out in less than an hour after the pre-orders commenced. So far, this situation resembles the 4S launch, with the new device also being a larger update than the latter. Criticism calling the 5 an “incremental” upgrade, along with other issues are thus far not preventing huge sales.

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