COMPANY NEWS IN BRIEF

Telkom capable of funding ­spectrumTelkom said on Monday it had enough room on its balance sheet to pay R2.1 billion (US$143.73 million) for bands of radio frequency spectrum it bought in a recent auction, despite negative free cash flow that tracked below expectations.

The South African firm, 40% owned by the government, and fellow telecom operator Rain won the first round of bidding in the auction held earlier in March. Operators have been waiting over a decade for spectrum licenses needed to lower data costs, roll out 5G and add 4G network capacity.

Telkom purchased two chunks of 10 MHz in the 800 Mhz band, giving it access to frequencies below 1 GHz for the first time - crucial to providing better internet coverage in underserved and rural areas and better indoor coverage. It also acquired 22 MHz in the higher frequency 3500 MHz band.

The company said 1.1 billion rand of the total cost was expected to be paid in its current financial year, affecting its debt levels, capital expenditure and free cash flow. -Reuters

Apple to cut iPhone, AirPods outputApple Inc is planning to cut the output of its iPhone and AirPods devices as the Ukraine crisis and looming inflation start to weigh on demand for consumer electronics, the Nikkei reported on Monday, citing sources.The company plans to make about 20% fewer iPhone SEs next quarter, or lower production orders by about 2 million to 3 million units than originally planned, due to weaker-than-expected demand, Nikkei said.

The US tech giant also reduced orders for its AirPods wireless headphones by more than 10 million units for all of 2022, as it scales back the level of inventories due to lukewarm demand, the newspaper said.

Earlier this month, Apple unveiled 5G connectivity to its iPhone SE, its low-cost model aimed mostly at buyers in emerging markets.

Counterpoint Research said the earlier 4G iPhone SE accounted for 12% of total iPhone sales from its launch in the second quarter of 2020 until the end of 2021, with Japan being the biggest market after the United States. -Reuters

Tesla to halt Shanghai ­productionTesla Inc is planning to suspend production at its Shanghai factory for at least one day, Bloomberg News reported on Sunday, as China’s financial hub said it would go into a lockdown in two stages to conduct Covid-19 testing.

Tesla’s production in the plant will be halted on Monday, the report said, citing people familiar with the matter, adding that the electric car maker hasn’t yet informed workers if it would extend the suspension beyond Monday.

Tesla did not immediately respond to Reuters’ request for comment.

Shanghai’s municipal government said on Sunday that all firms and factories will suspend manufacturing or work remotely during the lockdown.

Earlier this month, Tesla had to halt production at the factory for two days as China tightened its Covid-19 restrictions. The company then said it was trying the best to keep production going at the factory. -Reuters



French retailer Auchan to remain in RussiaPrivately-owned French retailer Auchan plans to maintain its presence in Russia, its CEO said in an interview published in the French newspaper Journal du Dimanche on Sunday, prompting Ukraine to call for a boycott of the international chain.

Auchan, which has around 30 000 staff, 231 stores and e-commerce activities in Russia, has already been criticised by Ukrainian President Volodymyr Zelenskiy for remaining operational in Russia after the invasion of Ukraine.

In the interview published on Sunday, Auchan’s chief executive Yves Claude said he feared the company risked losing assets or exposing local managers to potential legal troubles if it pulled out of Russia.

The firm would also remain in Ukraine, Claude said, where its 43 supermarkets and around 6 000 staff, including in regions hit by the war, were operating under “extreme conditions”.

“The most important in our eyes is to maintain our employees and ensure our primary mission, which is to continue feeding the populations of these two countries,” Claude said. -Reuters

Sainsbury faces shareholder voteSainsbury’s shareholders are set to vote on a resolution at this year’s annual meeting calling for Britain’s second biggest supermarket group to commit to paying the so-called real Living Wage to all its workers by July 2023.

Responsible investment group ShareAction, which is co-ordinating the move, said on Monday the resolution has been filed by an investor coalition managing 2.2 trillion pounds (US$2.9 trillion) that includes Legal and General Investment Management, Fidelity International, HSBC Asset Management and Nest.

It is the first resolution calling for a listed firm to become a Living Wage accredited employer. The real Living Wage is established by the Living Wage Foundation and independently calculated by the Resolution Foundation according to how much workers and their families need to live.

The rates are currently 11.05 pounds (US$14.58) per hour in London and 9.90 pounds per hour in the rest of the United Kingdom.

That compares to Britain’s main government-mandated minimum wage rate of 8.91 pounds an hour, which is due to rise 6.6% to 9.50 pounds an hour on April 1.

-Reuters