Why SoftBank is paying $32 billion for ARM Holdings

Mr. SonSoftBank is buying ARM Holdings for $32 billion. Why would a company not presently in the semiconductor business spend 32 times sales to enter a new industry? By traditional measures it makes little sense. But for SoftBank it makes perfect sense, because here’s a company that has spent more than 30 years making high-risk bets on entering new businesses by apparently over-paying for assets. It’s the way they’ve always done it and it has nearly always worked. In this case SoftBank is paying a 43 percent premium over the recent ARM share price because that’s how much money it took to overcome the resistance of ARM management. And it’s just a guess […]

Thinking about Big Data — Part Three (the final and somewhat scary part)

BigDataIn part one we learned about data and how it can be used to find knowledge or meaning. Part two explained the term Big Data and showed how it became an industry mainly in response to economic forces. This is part three, where it all has to fit together and make sense — rueful, sometimes ironic, and occasionally frightening sense. You see our technological, business, and even social futures are being redefined right now by Big Data in ways we are only now coming to understand and may no longer be able to control.

Whether the analysis is done by a supercomputer or using a hand-written table compiled in 1665 […]

Apple and Didi is about foreign cash and the future of motoring

DidiAppApple this week invested $1 billion in Xiaoju Kuaizhi Inc., known as Didi — by far the dominant car-hailing service in China with 300 million customers. While Apple has long admitted being interested in car technology and has deals to put Apple technology into many car lines, this particular investment seems to have been a surprise to most everyone. Analysts and pundits are seeing the investment as a way for Apple to get automotive metadata or even to please the Chinese government. I think it’s more than that. I think it is a potential answer to Apple’s huge problem of foreign cash and a grab for leadership in what may well be […]

The FBI v. Apple isn’t at all the way you think it is

cookjpgThe FBI holds an iPhone that was owned by one of the San Bernardino terrorists, Syed Rizwan Farook, and wants Apple to crack it. Apple CEO Tim Cook is defying the FBI request and the court order that accompanied it, saying that cracking the phone would require developing a special version of iOS that could bypass passcode encryption. If such a genetically modified mobile OS escaped into the wild it could be used by anyone to crack any current iPhone, which would be bad for Apple’s users and bad for Amurica, Cook says. So he won’t do it, dag nabbit.

That’s the big picture story dominating the tech news this […]

Why Apple doesn’t sell televisions

appledolbyAt least twice over the past decade Apple has been close to announcing its own television. Not the Apple TV set top box but actual big screen TVs with, well, big screens. But both times I’ve heard about this Apple backed away at the last minute. And the reason why they did was because even an Apple television would be just another television with an Apple logo. Steve Jobs realized that TVs had become a commodity and there didn’t seem to be an obvious way to make Apple’s television special. I’m not here to say Apple has finally found its TV design path as suggested in Walter Isaacson’s book and will be doing […]