The coronavirus outbreak is threatening Apple’s (AAPL +0.3%) plans to ramp up AirPods production, according to Nikkei Asian Review sources.
The outbreak shuttered Chinese suppliers for two weeks and could leave the suppliers short on components once production resumes.
Apple had wanted up to 45M AirPods units produced in H1 to keep up with the demand.
Key manufacturers Luxshare-ICT, Goertek, and Inventec have at most two weeks of materials and components needed for the AirPods, according to the sources. The manufacturers have to wait for other component suppliers to resume production to restock their supplies.
The assemblers and other Apple suppliers are expected to resume production on Monday.
Amazon (AMZN +0.6%) will hire more than 15K workers in Bellevue, Washington, and many will work from the planned 43-story tower.
Plans for the Bellevue 600 building were unveiled last summer and will offer 1M square feet of office space.
The tower is expected to be completed by 2024.
The hiring spree will happen over the next few years. Amazon currently has about 2,000 employees in the Seattle suburb.
Intelsat (I +7%) and other satellite companies would share as much as $14.9B under a new FCC proposal for giving up C-band airwaves in an auction to wireless companies.
The proposal awards $9.7B to Intelsat, SES SA, and others for leaving the airwaves quickly plus $3.3-5.2B to pay for the switch.
FCC Chairman Ajit Pai: “It’s only fair that every single reasonable cost should be covered. So under my draft rules, the winning bidders in the C-band auction would be required to reimburse satellite operators for their reasonable relocation costs.”
A vote on the plan will happen at the commission’s meeting on February 28.
Motorola Solutions (NYSE:MSI) topped profit expectations with its Q4 earnings after a healthy increase in software/services revenues and strength in the Americas.
Shares are up 0.6% after hours.
Revenues grew 5% to $2.38B, and backlog rose 6% to a record $11.3B.
But non-GAAP EPS increased by 12% to $2.94.
It caps “another year of record sales, cash flow and backlog,” says CEO Greg Brown. “Our momentum, particularly in video security and software & services, positions us well for another strong year.”
Sales by segment: Products and Systems Integration, $1.67B (flat); Software and Services, $704M (up 21%).
Operating cash flow was $795M.
For Q1, it expects revenue growth of about 2% Y/Y with EPS at $1.30-$1.35 (light of consensus for $1.36).
For the full year, it sees revenue growth of about 4%, and EPS of $8.65-$8.80 (above expectations for $8.58).
Wedbush analyst Ygal Arounian says Uber’s (NYSE:UBER) “solid” earnings results are “an important first step forward towards regaining Street credibility.”
The analyst says that Uber “finally delivered a quarter with minimal noise” and notes that the improving pricing environment and cost structure management are helping fundamentals.
Wedbush maintains an Outperform rating and $50 price target. Uber has a Bullish average Sell Side rating.
