I heard iPhone v2 will be 3G (HDSPA) and GPS enabled. Rumours were of an early June launch but I don't think Apple are confirming anything yet. Also read Nokia are planning to sell 35m GPS phones in 2008.
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Only 1 more week until the profit announcement - I wonder how much lower the NZD will be by then and what expectations they indicate on future profitability...
Copied from NZX. Doesnt sound that material to me... Anyone know if this is a big deal or not?
16 May 2008: Auckland, New Zealand:
Rakon has announced it plans to sell the assets of Rakon’s commodity business, based in Crewkerne UK to IQD Frequency Products Limited. This business is largely involved in the sourcing and supply of mass market components, not manufactured by Rakon, to the European market.
Rakon Managing Director, Brent Robinson, said this was a logical step in Rakon’s growth plans, and the business was quite different to Rakon’s design and manufacturing operations.
“The Crewkerne business was included as part of our acquisition of the frequency control products division of C-Mac MicroTechnology in March 2007. Following this acquisition, we undertook a strategic review to determine what value the commodity trading business could add to the Rakon group.”
“We determined that Rakon was better to focus its full resources on the substantial opportunities ahead by growing our enlarged manufacturing business. Similarly we concluded that the commodity business would be better served by owners and management focussing specifically on the needs and opportunities of that business.”
The new IQD will maintain a very close working relationship with Rakon and both companies will continue to supply each other with components. Rakon’s other European operations in Lincoln, Harlow and Argenteuil are unaffected by the sale.
“Apart from some local customers seeing a name change we don’t expect there to be any impact on our existing customer base,” explained Mr. Robinson. “We will still offer the same broad product range to our strategic customers that we always have and IQD will continue to supply Rakon products to their customers.”
The new company will retain the existing management and staff of the current Crewkerne operation with the transfer expected to be concluded at the end of May 2008.
The proceeds from the sale will be equivalent to the value of the assets held. The business accounted for approximately 9% of Rakon’s revenue and 3% of earnings in the 2008 financial year.
Rakon will release its Full Year 2008 results on the 22nd of May, accompanied by an update on operations.
ENDS
Phaedrus
Can you please post and updated chart
Thanks
Here you are Footsie.
RAK remains in a downtrend with a confirmed trendline in place (red line). There was support at $3.00 (a nice round figure) but that was broken last month. Green arrows are Buy signals, red arrows Sell.
I have included the On Balance Volume plot, but really it provides no further insight, other than indicating that RAK is not being distributed (or accumulated).
The chart includes the latest price of $2.90, but of course the Close may be different.
http://h1.ripway.com/Phaedrus/RAK79.gif
thanks phaedrus
Apple launches its new iphone with GPS tonight
there is a slim chance the RAK might have won the contract or at least part of it
http://www.nzx.com/news/markets/4585825
either way its very good for the industry and it's likely that RAK will win other contracts once Motorola, Samsung etc put GPS in phones later this year. It's rumoured they have already signed up Blackberry and Nokia
FYI whoever wins the apple contract is worth hundreds of millions in revenue over the next few years.
$4 a GPS chip... 10 million iphone sales p.a. = 40m in revenue
with 50% of the Global GPS market we can safely assume that RAK will start winning some large contracts soon.
within 2 years GPS will probably be mainstream in most phones
I owned RAK from the IPO.... sold at 4.80-5.15.
Technically re-entry timing now might be poor.
But fundamentally i think its about right.
I used to think they were overvalued but after re-assesing the facts..... no debt.... and the massive industry growth ... combined with the IP... and falling NZD....
potentially i think RAK could do half a billion in revenue in 2 years if they get things right.
DYOR
We will know in a few days or sooner if RAK are supplying GPS chips for the iphone
Would be awsome if they were supplying Apple.
With the dollar being at a more resonable level RAK is becomming more and more tempting.
Footsie how will you be able to find out if RAK is supplying Apple?
im guessing iphone techno geeks will pull apart the phone and determine the components to see how much it costs to make phones, inside they might see 'RAK' stamped on the gps reciever :) ...analysts can then also determine the profit margin for apple etc.. well, thats what they did with the 1st generation.