Monday, September 10, 2012

News RoundUp: Apple Inc.(NASDAQ:AAPL) & Groupon Inc(NASDAQ:GRPN)

Apple trims down orders to Samsung

According to Reuters, sources have said that Apple has cut back its orders for memory chips with Samsung Electronics, a company which is both supplier and competitor. This is part of the former’s bid to diversify its memory chip sources.

The South Korean Company produces various parts such as microprocessors, flat screens and memory chips - both dynamic random access memory (DRAM) chips and NAND memory chips - for Apple products: the iPhone, the iPad and the iPad.

The Korean Economic Daily has reported that Samsung does not figure in the list of memory chip suppliers for the first batch of the new iPhone 5. The Cupertino based company has instead chosen Japan’s Toshiba Corp, Elpida Memory and Korea’s Hynix as suppliers for DRAM and NAND chips.

Samsung is offsetting the loss in orders by providing parts for its own handsets. Its Galaxy line of handsets is bringing in most of the profit and also providing business to its units which produce components like memory chips, microprocessors and displays. Since its launch in May, the Galaxy S III has sold more than 20 million units.

For Apple, every new launch results in supply problems due to the huge demand for the new products. The California based company has selected Amperex Technology Ltd and Japan’s Panasonic Ltd. for providing battery supplies. LG Display supplies most of the flat panel displays.

Apple and Samsung have been battling out patent cases in several countries. In the U.S., a recent verdict went in Apple’s favor. Samsung was found guilty of copying iPhone features and was imposed a fine off $1.05 billion. But it is widely believed that eventually, the two companies will have to settle.

The Korean technology company has been participating in the ongoing rally in the technology sector. On Friday, Samsung shares rose 4%.

Chief accounting officer for Groupon

Amid several accounting controversies, Groupon Inc(NASDAQ:GRPN) has said today that it has appointed Brian Stevens as its chief accounting officer and will report to Jason Child, the company’s Chief Financial Officer. Stevens was with KPMG for 16 long years and was recently its audit partner.

Earlier in the year, Groupon’s method of revenue accounting had raised some serious concerns. The company was also forced to desist from reporting Adjusted Consolidated Segment Operating Income a controversial metric, under pressure from regulatory authorities.

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