Catch up with Michelle Kwan and the all-star figure skaters who attended her Jan. 19 dream wedding
Credit: Caitlin Maloney
Updated: Friday Jan 25, 2013 | 05:00 PM EST
By: NANCY MATTIA AND CYNTHIA WANG
New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.
The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.
Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.
There is still vaccine available although it may be hard to find. The CDC has a website that can help.
___
CDC: http://www.cdc.gov/flu/
NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.
Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.
The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.
The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.
"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."
The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.
The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.
That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.
MUTUAL FUND INVESTORS COME BACK
All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.
Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.
More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.
"If you peel back the onion a little bit, you start to look at companies like Precision Castparts
The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.
Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.
"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.
The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.
JOBS DATA MAY TEST THE RALLY
In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.
Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.
The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.
"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."
A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc
On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.
Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.
"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."
For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.
(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)
While using Twitter to narrate events in Tahrir Square on Friday, people in Egypt described tires burning in the street, protesters blocking traffic and hurling rocks, and police officers launching tear gas in an effort to break up crowds that had gathered to protest against the Muslim Brotherhood and the country’s new Islamist president.
Many of the actions described on Friday appeared to hew to a script that has become familiar over the past two years, but some in the crowds of protesters appeared to be using new tactics, dressing from head to toe in black, covering their faces with bandannas or kerchiefs and brandishing black flags as they skirmished with security forces.
“Asked one of them who they are they said we don’t talk to media but we are black bloc,” wrote the British-Egyptian journalist Sarah Carr, adding that a member of the group had “mentioned anarchism.”
Shubra march is full of young men wearing wrestling masks.
— أبو كار (@Sarahcarr) 25 Jan 13
Saw a winning ski mask and spectacles combination. We’re banned from photographing them.
— أبو كار (@Sarahcarr) 25 Jan 13
Asked one of them who they are they said we dont talk to media but we are black bloc. Mentioned anarchism.
— أبو كار (@Sarahcarr) 25 Jan 13
An article filed on Thursday by The Associated Press reported the presence of a “previously unknown group calling itself the black block.” The article continued, “Wearing black masks and waving black banners, it warned the Muslim Brotherhood of using its ‘military wing’ to put down protests.”
Although largely new in Cairo, the term “black bloc” has been used for years in the United States and Europe to describe a tactic commonly used by anarchists and anticapitalists during large-scale political demonstrations that occasionally devolve into street fights with the authorities.
Participants in the bloc typically dress in black to foster a sense of unity and to make it difficult for witnesses to differentiate between individuals. Members of the bloc often blend in with larger groups of protesters, then break away, linking arms as they rush down streets.
In the United States, at least, black bloc members usually eschew violence against people but have few compunctions about damaging property.
The tactic received attention during the 1999 protests in Seattle against the World Trade Organization, when youths dressed in black broke windows and spray-painted graffiti on buildings.
In St. Paul, during the 2008 Republican National Convention, black bloc members roamed through the city smashing bank windows and using hammers to batter a police car.
It is unclear whether there are any connections between American and Egyptian black bloc participants, but the site anarchistnews.org posted a message about occurrences in Cairo, quoting the blog Even If Your Voice Shakes.
Last night, anarchism left the graffitied walls, small conversations, and online forums of Egypt, and came to life in Cairo, declaring itself a new force in the ongoing social revolution sparked two years ago with multiple firebombings against Muslim Brotherhood offices. Later, the government shutdown the “Black Blocairo” and “Egyptian Black Bloc” Facebook pages, but they were soon re-launched.
The site went on to say that Egyptian anarchists had firebombed the Shura Council.
As my colleague Robert Mackey reports, an Egyptian journalist, Sarah El Sirgany, wrote on Twitter, “Vendors tell me it was the Black Block group that attempted to storm the Ikhwan Online building sparking the fight.”
Later, she added, “Now those who had continued the fight are heading to Tahrir, flag of Black Block flying high.”
Opinion on the black bloc in Egypt was not united. In a place where sexual assaults and gropings have become common, one Twitter user, Ghazala Irshad @ghazalairshad, seemed to sound an admiring note: “Egypt’s new Black Bloc (self-proclaimed anti-MB militia) has female members too — just saw one running wearing niqab & angle-length skirt.”
Egypt’s new Black Bloc (self-proclaimed anti-MB militia) has female members too–just saw one running wearing niqab & angle-length skirt.
— Ghazala Irshad (@ghazalairshad) 25 Jan 13
But the activist bloggers Gigi Ibrahim and Adel Abdel Ghafar were more skeptical.
This black bloc is just trouble even if they have good revolutionary intentions but it definitely will be used against the revolution
— Gigi Ibrahim (@Gsquare86) 25 Jan 13
Black Bloc: anarchist revolutionaries or 18 year olds who live with their moms & wear black masks thinking life is a video game ? #egypt
— Adel Abdel Ghafar (@dooolism) 25 Jan 13
This week a man named Ahmed Ibrahim, who has previously posted YouTube videos that appear to be from Egypt, posted a video titled “Black Bloc Egypt.”
Accompanied by driving music the video shows masked people marching while holding aloft black banners, a black flag with an anarchy symbol and an Egyptian flag.
HONG KONG (Reuters) – Apple Inc’s third straight disappointing quarter signals an urgent need for the global technology leader to drum up new revenue – and China may provide the answer.
Now more than ever, analysts say, Apple needs to get it right in the world’s most populous country, where it ranks only sixth in annual smartphone sales and Samsung Electronics remains the runaway leader.
Apple’s best plan of attack remains securing a deal with the country’s top mobile carrier by far, China Mobile Ltd. It also needs to push the development of more localized apps and extend installment financing to bring its pricey smartphones within the reach of an urban populace with an average annual income of just $ 3,500.
But it should resist the temptation to just put out a cheaper iPhone, some analysts say. Introducing a long-rumored lower-cost version of the gadget could backfire by diluting Apple’s premium brand – one of its most valuable assets.
“If you think of Apple, it’s like a bright star in the galaxy, shining so brightly and everyone is looking at it. But it might have dimmed a bit as other stars such as Samsung have popped up,” said TZ Wong, an analyst at research firm IDC.
“I don’t think it’s in Apple’s interest to further dim its star power by stepping into the low-end segment.”
With Apple’s product pipeline guarded with the same zeal accorded state secrets, some analysts are focusing instead on what the world’s largest technology company needs to do to finally become a major player in the world’s No. 2 economy.
While iPhone sales leapt 60 percent last quarter, investors worry that, in the longer term, the company may be pricing itself out of a golden opportunity while Samsung and local rivals from Huawei Technologies Co Ltd to ZTE blanket the market with cheaper phones that rival the iPhone in quality and usability.
A deal with China Mobile, the world’s largest mobile phone carrier with more than 700 million users, will prove instrumental but analysts say that may not happen until the issuance of 4G wireless licenses, which could take place later this year or even in 2014.
“The competitive landscape has definitely cranked up a few notches from a year ago. So there is more urgency for Apple to explore its ways to grow,” IDC’s Wong said.
CEO Tim Cook has made it no secret that China is an area of intense focus for the iPad and iPhone maker, especially given the still-low penetration across the country of smartphones and tablets. Apple has said it will continue to expand its retail network there, and in January, Cook flew to Beijing for at least the second time in a year, to meet with pivotal carrier China Mobile.
A STAR IS DIMMED
On Wednesday, Apple missed revenue forecasts for the third straight quarter after iPhone sales came in below expectations, fanning fears that its dominance of consumer electronics is slipping.
Apple’s revenue in China, including neighboring Hong Kong and Taiwan, totaled $ 7.3 billion in the December quarter, up 60 percent from a year earlier.
But there are signs that Apple’s vaunted cachet in the world’s most populous nation is waning.
Recent product launches for the mini-iPad and the iPhone 5 have drawn a relatively subdued response from Chinese consumers, in stark contrast to the fist-fights and egg-hurling at its Beijing store a year ago when sales of the iPhone 4S were delayed.
Since the iPhone 5 went on sale in mid-December, transactions have fallen by half, according to the Taobao Index, the consumer research data website of Internet giant Alibaba Group.
The iPhone is also losing out as consumers opt for bigger screens to watch Chinese soap operas while travelling on trains, or affordable smartphones in the sub-1,000 yuan ($ 160) category made by local vendors.
“When I started using a bigger screen, there was no turning back for me. Small screens don’t work anymore,” said a business executive surnamed Wen, as he swiped the screen on his Samsung Galaxy Note during lunch in Beijing.
Around half of the more than 60 million smartphones shipped in China in the third quarter last year had screens that were bigger than 4 inches, based on IDC’s latest figures. The iPhone 5 comes with a 4-inch screen, while the Galaxy Note II’s screen is 5.5 inches.
Also, local vendors such as Coolpad smartphone maker Yulong Computer Telecommunication Scientific (Shenzhen) Co Ltd, which offers cheaper alternatives, and Meizu Technology Co Ltd, known for its minimalist designs, have seen its legion of fans grow.
Price is a key factor, especially in the Chinese market where around 80 percent of the more than one billion mobile phone users are still on 2G networks.
On the online Taobao website, Coolpads and low-end models made by Huawei Technologies Co Ltd and ZTE Corp are selling at below 1,000 yuan, a sweet spot for many consumers switching from basic phones to smartphones.
Apple has moved to address that, partnering with China Merchants Bank to offer financing and installment options so that buyers can pay with the bank’s credit card when they shop online, media reports said.
Finally, expanding the number of applications customized for China will help grow Apple’s market share but that might need tighter collaboration with Chinese companies, such as Baidu Inc and Tencent Holdings Ltd.
“Consumers will definitely welcome closer cooperation between Apple and Chinese tech firms to customize the iPhone for the use of apps such as Tencent’s WeChat,” said Frederick Wong, executive director of Avant Capital Management (Hong Kong) Ltd, a fund that invests in Apple-related options.
(Editing by Edwin Chan and Richard Chang)
Tech News Headlines – Yahoo! News
By Dahvi Shira
01/25/2013 at 08:20 PM EST
Liberty Ross
Michael Buckner/Wireimage
The Snow White and the Huntsman actress, 34, filed for divorce Friday from her director-husband Sanders, 41, in Los Angeles County Superior Court on Friday, PEOPLE confirms.
News of the filing comes about six months after Sanders's highly publicized cheating scandal with Huntsman's star, Kristen Stewart.
Stewart has since patched things up with boyfriend Robert Pattinson, who she was dating during the fling.
In the court documents, Ross seeks joint custody of the couple's two kids, 5 and 7, TMZ reports. She also asks for spousal support and attorney's fees.
Sanders, who has filed his response to the divorce petition, also seeks joint custody of the kids, and wants to share legal fees with Ross, according to TMZ.
WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.
The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.
For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.
Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.
Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.
Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.
Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.
Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.
"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.
"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.
Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.
"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."
Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.
First, the law allows insurers to charge older adults up to three times as much as their youngest customers.
Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.
And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.
Here's how the math would work:
Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.
But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.
"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.
In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.
Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.
"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."
___
Online:
Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx
NEW YORK (Reuters) - The smallest of gains gave the Standard & Poor's 500 its seventh straight winning day on Thursday, but the index failed to hold above the 1,500 line, restrained by Apple's worst day in more than four years.
Apple Inc slid 12.4 percent to $450.50 a day after it posted revenue that missed Wall Street's forecast as iPhone sales were poorer than expected.
The sharp drop wiped out nearly $60 billion in Apple's market capitalization to less than $423 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second-place ExxonMobil
The S&P 500, however, managed to hit its longest winning streak since October 2006.
"The market has sent the message it is no longer driven by the whims of Apple," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.
The S&P 500 briefly traded above 1,500 for the first time since December 12, 2007, but failed to hold above it, indicating that momentum is waning and a pullback is in the charts.
"If the market had a little bit more excitement to it, momentum players would have jumped after it broke through 1,500. Investors know the market is a little bit ahead of itself," Polcari said.
Economic data helped buoy equities as U.S. factory activity grew the most in nearly two years in January and new claims for jobless benefits dropped to a five-year low last week, giving surprisingly strong signals on the economy's pulse.
At the same time, Chinese manufacturing grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a euro-zone recovery.
"PMI in Asia, Europe, and obviously, here in the United States, is moving in the right direction, and that's stuff people should be excited about," Polcari said.
The Dow Jones industrial average <.dji> rose 46 points or 0.33 percent, to 13,825.33 at the close. The S&P 500 <.spx> inched up just 0.01 of a point, or 0 percent, to finish at 1,494.82. The Nasdaq Composite <.ixic> dropped 23.29 points or 0.74 percent, to end at 3,130.38, with most of that loss on Apple's slide.
The broader Russell 2000 index <.rut> also hit a milestone as it closed above 900 points for the first time.
Video streaming service Netflix Inc
Earnings have helped drive the stock market's recent rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings so far, 66.9 percent have exceeded expectations - above the 65 percent average over the past four quarters.
About 6.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.
Roughly five issues rose for every four that fell on both the NYSE and Nasdaq.
(Editing by Jan Paschal)
Last Updated, 11:28 p.m. Bloggers in Cairo reported that tear gas was fired into Tahrir Square by the police Thursday night, as Egypt braced for a day of protests to mark the second anniversary of the revolution that began on Jan. 25, 2011.
In #tahrir square, nasty tear gas. Really potent.
— Wael Eskandar (@weskandar) 24 Jan 13
Just came from behind CSF lines on Qasr al-Aini where the troops seemed to be thrilled the battle is on again. Teargas everywhere.. #Egypt
— Dirk Wanrooij (@dirkwanrooij) 24 Jan 13
As the Cairene blogger who writes as The Big Pharaoh explained, officers from the Central Security Forces fired the gas at protesters after the crowd started to pull down a wall blocking an entrance to the square on Qasr al-Aini Street.
Clashes erupted after Tahrir protesters tried to remove the concrete blocks at Kasr Ainy St. Useless clashes are the last thing we need now.
— The Big Pharaoh (@TheBigPharaoh) 24 Jan 13
The activist Sherief Gaber, who writes as @cairocitylimits, pointed to video of cheers erupting from the crowd as the wall was torn down on Thursday.
The cheer at this point in this video is heartening to anyone who has ever been enraged by a barrier wall: http://t.co/xCidhbHP
— sherief gaber (@cairocitylimits) 24 Jan 13
Hours after the fighting began, The Big Pharaoh called the clashes “useless,” coming on the eve of planned demonstrations in the same area to note continuing dissatisfaction with Egypt’s postrevolutionary government.
Clashes continue in Kasr Ainy st. Police firing loads of tear gas into Tahrir. Useless clashes in the wrong timing.
— The Big Pharaoh (@TheBigPharaoh) 24 Jan 13
After the wall was destroyed, the Cairo daily Al-Masry Al-Youm reported that soldiers had been deployed to build a new one on the same street.
@Adamtawny they’re building another one as this goes down http://t.co/PRVB498c
— Amani Massoud (@amassouda) 24 Jan 13
At about 6 a.m. on Friday morning, The Big Pharaoh posted an image of clouds of tear gas in Tahrir Square and expressed his amazement that the police had apparently continued firing canisters throughout the night.
Police still firing tear gas in #tahrir. It is unbelievably intense. I thought they built their concrete wall, why are they still firing?!
— The Big Pharaoh (@TheBigPharaoh) 25 Jan 13
They’re firing tear gas like crazy even though they’ve built their wall. Why?? #tahrir http://t.co/n2nS320E
— The Big Pharaoh (@TheBigPharaoh) 25 Jan 13
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
Copyright © News autoinjector. All rights reserved.
Design 
And Business Directories
