quarter
Latest
AT&T reports best-ever first quarter for smartphone sales with 5.5 million, 60 percent of them are iPhones
We've been waiting for this one, the first indicator of the mythical Verizon iPhone's impact on the fortunes of the formerly exclusive Applephone carrier, AT&T. As it turns out, business is rolling along as usual over on the blue team, where AT&T spent Q1 2011 activating a total of 3.6 million iPhones, a nice round million more than the same period last year. Also interesting is AT&T's note that somewhere around 40 percent of its smartphone sales come from Android, BlackBerry and Windows Phone 7 devices, leaving the iPhone to account for the remaining 60-ish percent. Taken as a whole, that group totaled up 5.5 million sales in the quarter, a new best for AT&T in the first three months of the year, and the smartphone segment is now said to account for 46.2 percent of the company's postpaid user base. Jump past the break for more details in AT&T's press release.
Philips sells HDTV business to Hong Kong-based TPV Technology, will sate itself with royalty payments
Philips has been making teevees for over 80 years, but today its new CEO has announced that this storied history is coming to an end. Unable to generate a profit from its HDTV division -- it lost the company €87 million in the first quarter -- Philips will soon sell the majority stake in it to Hong Kong manufacturer TPV Technology, while retaining a 30 percent ownership share and agreeing guaranteed royalty payments of €50 million per year from 2013 onwards. It's not a bad deal for the Dutch consumer electronics maker, whose bottom line for the first quarter was €137 million in the black, but would have been double that had the new arrangement been in place. All 4,000 Philips employees working under the HDTV umbrella will be transferred over to TPV, though the company says it doesn't want the "market to misread that [it] intend to lay-off a lot of employees." Which is not to say that it won't. A video interview with Philips' chief Frans van Houten discussing the change of direction can be found after the break.
Samsung Tabulates 2 million slates, 80 million phones sold in Q4 2010, breaks revenue records
Score one for Samsung in its eternal struggle against South Korean nemesis LG. Whereas the Life's Good crew were licking their Q4 2010 wounds yesterday, Samsung's had the pleasure of announcing that the final quarter of last year helped it bust through all its previous fiscal records: total revenue ($139b), net income ($14b), and operating profit ($15.5b) all reached all-time highs. The fourth quarter's contribution was $2.7b in operating profit, 80.7 million mobile devices sold, 12.72 million flat panel TVs shipped, and two million Galaxy Tabs distributed to Android lovers yearning for some Froyo. That last number's pretty important as it shows the Tab's sales have almost doubled over the last month of the quarter -- it reached one million sales in early December -- indicating that there is indeed a hunger for slate-based computing. Oh, and if you're wondering what Samsung's planning for the future, there's a reminder that a device with a Super AMOLED Plus screen and a dual-core processor is coming to replace the Galaxy S in the first half of 2011. Good to know. [Thanks, Tascien]
Amazon celebrates its first '$10 billion quarter' in sales, finds Kindle books overtaking paperbacks
July 19, 2010 marked the day that Amazon's digital book sales eclipsed the sales of hardcover books, and it barely took half a year for those e-book sales to also overtake the sales of paperbacks. According to the ouftit's latest earnings release, "Kindle books have now overtaken paperback books as the most popular format on Amazon.com." The company had surmised that this would happen by Q2 of this year, but it clearly went down a lot earlier than even it expected. Bezos and co. also sold through $12.95 billion worth of goods, representing The Jungle's first "$10 billion quarter." That came up to $416 million in net income, representing an eight percent uptick year-over-year. Of note, operating income slipped from $476 million in Q4 2009 to $474 million this year, with the unfavorable impact from year-over-year changes in foreign exchange rates generating a staggering $18 million hit. When looking at 2010 as a whole, Amazon's sales were up 40 percent over 2009, with operating income rising some 25 percent to $1.41 billion compared to the whole of 2009. Speaking specifically of the Kindle, the company is now moving 115 Kindle books for every 100 paperbacks sold, but this obviously only takes into account the US book business. We're still no closer to finding out exactly how many Kindles have been moved, but we're told that "millions" of the third-gen model were moved in Q4 2010, and the Kindle Storeitself has over 810,000 books on its digital shelves. Head on past the break if you're thirsty for more, Sir Economist.
Qualcomm has best quarter ever, teases a host of Snapdragon tablets
If you've got a speedy Snapdragon in your smartphone, Qualcomm's the one to thank -- but considering the raw earnings figures shared yesterday, your dollars have applauded the firm enough already. Qualcomm reported record earnings of $3.35 billion for its first fiscal quarter of the year, up 25 percent since Q1 2010, and it raked in a nice fat $1.17 billion of that in profit, 39 percent more than last year. That's thanks to shipping 118 million of those Mobile Station Modem (MSM) chips that power mobile devices, as well as other ventures, and the company expects revenues to continue their upward bent as 2011 progresses -- thanks to new devices on the way. Qualcomm EVP Steve Mollenkopf told investors that "we currently have more than 150 Snapdragon devices in development, including more than 20 tablets," and that the dual-core 1.2GHz MSM8660 in particular was picking up steam, with over 60 devices slated to use the dual-mode chipset with HSPA+ and EV-DO Rev. B. What of a groundbreaking deal with Apple to power new iPhones and iPads? CEO Paul Jacobs wouldn't say: "We're happy to see the Verizon iPhone announcement since it's been the subject of intense speculation, but we have no other comments on that topic." Guess we'll have to wait and see.
Nokia smartphone market share shrinks to 31 percent, operating profit takes a beating too
Stephen Elop's first quarterly results as Nokia CEO have just come out, and while the company's still growing, others seem to be speeding ahead of it. Nokia's reporting its converged mobile devices (smartphones, to you and us) reached volumes of 28.3 million during Q4 2010, which is a neat bump from 20.8 million at the same time last year and 26.5 million in the previous quarter. However, in the context of the broader smartphone marketplace, that figure now amounts to only a 31 percent share, according to Nokia's own estimates, which is a major dip relative to its 40 percent slice in Q4 2009 and 38 percent in Q3 2010. Elop's perspective on the matter is as follows: "In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it's time for Nokia to change faster." When your operating profit goes from €1.47b (€950m net) a year ago to €1.09b (€745m net) this year, the response should indeed be to change and to change fast. Nokia's still not disclosing sales figures of the N8, but given that this was the first full reporting period where the company's Symbian flagship has been on sale, it doesn't seem to have had quite the impact Espoo will have hoped for. Wanna try again with the N9? Update: Nokia's investor relations call has borne a few more interesting tidbits from the new man in charge. Elop is quoted as saying Nokia must "build or join a competitive ecosystem," with the latter verb in that sentence sure to renew discussions of why the Finnish company should / shouldn't switch to an OS such as Android or Windows Phone 7. We still think that'll be the very last resort over in Espoo, but Elop apparently believes Nokia has the brand recognition and operator relationships to make such a move if it wanted to. Which of course it doesn't. Or does it? Let's wait for Nokia's Strategy and Financial Briefing in London on February 11th -- Mr. Elop's expected to be a lot more specific about his company's roadmap going forward on that day.
Motorola Mobility reports robust growth in last quarter, but predicts difficult times ahead
Yes, we are deep in Q4 2010 financial reporting season, and Motorola's freshly independent Mobility arm is latest to step up and deliver its figures. Total revenue over the past three months reached $3.4 billion, marking a 21 percent increase year-on-year, net revenue from mobile devices was $2.4 billion, up by 33 percent year-on-year, and handset shipments were a seemingly healthy 4.9 million. That figure's disappointed Wall Street estimates, however -- the collective expectation, according to MarketWatch, was 5.2 million -- and the net profit of $80 million is barely (for a company of this size) in the black. More doom and gloom is cast by Motorola itself, which is predicting a difficult first quarter of 2011 that will end with the company losing between 9 and 21 cents per share in net terms. Ah well, let's try to enjoy the sunshine of Moto making money today and forget the rainclouds of tomorrow.
Apple's 'PC' shipments grow by 241 percent in iPad-inclusive Canalys stats
Canalys is a pretty well respected global stat-keeper and now it seems to be relying on that reputation to push through a pretty controversial message: tablets, such as Apple's iPad and Samsung's Galaxy Tab, are PCs. "Accept new market realities," urges its polemic press release, before laying out global quarterly shipments that peg Apple as the world's third most prolific PC vendor (without tablets, Apple doesn't even break the top 5 according to IDC and Gartner). The company that was laboring with a mere 3.8 percent market share in 2009 has shot up to 10.8 with the aid of its 10-inch touchscreen device. Canalys' stance will inevitably be controversial, but then it's kind of hard to deny that machines like Samsung's Sliding PC and ASUS' Eee Slate make the distinguishing lines between tablets and netbooks look like a particularly technical form of bokeh.
Sony Ericsson ships 9 million Xperia Android phones, but latest earnings disappoint
Sony Ericsson has just made its financial results for the fourth quarter of 2010 official and the highlight, at least for milestone lovers like us, is the figure of nine million Android-based Xperia handsets shipped since the family's launch. Now, the language used here is important, as Sony loves to report shipments to retailers instead of actual sales, but it's still a pretty grand number of Xperia X10, X10 Mini, X10 Mini Pro, and X8 handsets out and about in our big wide world. Hell, it's even more impressive when you consider that those phones have spent most of their lives riding the ancient Android 1.6 as their operating system. In terms of actual currency figures, however, SE has fallen short of expectations, reporting a moderate €35 million pre-tax profit for Q4, which the company is turning into a positive by noting that it marks its fourth consecutive quarter of being in the black. If the new crop of Xperia Androids are anything to go by, we can probably expect this habit to continue for a good long while.
ComScore: Android jumps ahead of iOS in total US smartphone subscribers
We've seen plenty of data to show that Android is the hottest-selling smartphone OS among US buyers today, but now we have a stat point to show that it's doing pretty well in cumulative terms as well. According to ComScore's latest estimates, Android had 26 percent of all US smartphone subscribers in the quarter ending November 2010, bettering Apple's iPhone for the first time. The major victim of Android's ascendancy has actually been RIM's BlackBerry, whose lead at the top contracted by 4.1 percentage points (nearly 11 percent less than the share it had in the previous quarter). Guess those Verizon iPhones and dual-core BBs had better start arriving pretty soon.
Microsoft also declares record revenue, but Apple still on top
Apple isn't the only technology company that's posting record revenue this year -- Microsoft has brought in $16.20 billion in the last quarter, which stands as a record with a 25 percent increase from the same time last year. The Seattle giant also increased net income to $5.41 billion, so it looks like Halo Reach (in September) and Office 2010 (in July) sent things in a good direction. Apple announced revenue of $20 billion last quarter, which puts the Cupertino company on top by $4 billion in terms of incoming money. But Microsoft still rules net income, with Apple pulling in $4.31 billion for the same quarter. That may change next reporting period, given Apple's steam in the industry so far, but no matter which way you slice it, both of these companies are rolling in the dough.
AT&T clocks up 2.6 million net new wireless subscribers, bigger profits in Q3
AT&T's balance sheet just keeps looking happier and happier every quarter. In spite of the company's somewhat questionable hardware choices -- such as picking the ugly option from both Samsung's and LG's Windows Phone 7 platters -- it now proudly boasts a total of 92.8 million active wireless service lines. This comes off the back of a 2.6 million net subscriber gain over the third quarter of 2010, a record for this period of the year. Churn, or the rate at which people left AT&T, was also at its best ever for the quarter, coming in at a lowly 1.32 percent, while postpaid integrated device (read: smartphone on a contract) activations reached above the eight million mark. Total net profit was $12.3 billion, thanks to the sale of Sterling Commerce and a one-off tax adjustment, but in cashflow terms the company made $4.0b in the quarter. That's a lot of dinero, no doubt aided by Q3 being the first full reporting period after the iPhone 4's launch, we just wish some of AT&T's other phones weren't quite so unappealing.
Nokia reports improved earnings for Q3 2010, will still 'streamline' up to 1,800 employees out of a job
Nokia's quarterly results have just been made public and the company's devices plus services sector has actually improved its income relative to last year: €7.2b of revenue was collected over the past three months versus €6.9b in the same period a year ago. Operating profit has also pepped up, going from the previous €785m to €807m. You'd think this would augur well for Stephen Elop's beginning at the helm, but the new man in charge is also presiding over a fundamental restructuring of operations at Nokia, which is expected to result in the redundancy of up to 1,800 employees globally. There are no specifics to tell us who'll be losing out, but the aims are the boilerplate tasks of increasing efficiency, simplifying operations, and reducing time to market. Anyway, we doubt the great people of Finland will be pleased.
Developers drop prices on super popular App Store apps
If you thought yesterday's App Store sales were nice, you haven't seen anything yet. For some reason, a whole bunch of terrific apps are dropping their prices this weekend, and Touch Arcade has put together a nice roundup. TUAW Daily App choices Osmos, Archetype, Civilization Revolution, Secret of Monkey Island (and its sequel) and Hybrid 2 are all on sale for as cheap as 99 cents, as is Telltale's Puzzle Agent, Popcap's Bookworm and Peggle, and a host of other high-profile titles. Pretty crazy -- some of the App Store's most popular titles, including EA's Need for Speed series and Activision's Call of Duty Zombies games, are seeing the biggest drops in their lifetimes. My best guess for the big drops is that the financial year 2010 ends today, and these companies are trying to pad out their mobile app sale numbers before (or while) the quarter turns over. But whatever the reason, we consumers benefit -- if you've been waiting to pick some of these games up, now's your chance. And I think we'll be seeing a lot more of this. Companies, especially companies that have been premiering their apps as high as $9.99, are learning that dropping the price like this moves copies quickly, so as we move into the frenzied holiday season for gaming, we'll probably see more than a few big sales come down the pike. Stay tuned.
Motorola manages $162 million Q2 profit, turns that frown upside down
It's a good day here, because rather than poor 'ol Sad Moto we get to bust out Happy Moto, as Motorola has released some good news in its Q2 financial report. Earnings were $162 million, up from $26 million this time last year. That sounds like a big jump, but compared to overall sales of $5.4 billion you can see things are still rather tight -- especially since those sales were down from $5.5 billion the year before and all-important mobile device sales figures dropped six percent to $1.7 billion. Also, these numbers were boosted by a "significant legal settlement" valued at $228 million. Maybe intellectual property wasn't the only thing Moto got from RIM?
Sony posts another huge annual loss, but PS3 sales are up
Sony just posted its yearly results today, and while a ¥40.8 billion ($439 million) loss is never a good thing, it's at least a marked improvement from last year's staggering $1 billion drop into the red, which was the company's first loss in 14 years. LCD TVs and cameras were Sony's big electronics sellers, while PS3 sales went up to 13 million from 10.1 million last year -- and hey, Sony's console actually became profitable at the end of the year as production costs have gone down. Now for the bad news: PSP sales were down to 9.9m from 14.4 last year, with game sales dropping to 44.4m from 50.3m units, while PS2 hardware went down to 7.2m from 7.7m units and PS2 software fell sharply from 83.5m units to 35.7m units. That's not completely unexpected, as the PS2 can't last forever and the PSP is getting long in the tooth, but it means that Sony faces some serious pressure to hit its target of 15m PS3s sold this year to pick up the slack and help it hit its goal of posting a ¥50 billion ($541 million) profit next year. Let's hope that Move controller lives up to the hype, right? Sony's also counting on 3D to help it get there, and wonder of wonders, it also expects Sony Ericsson to hit profitability, so that X10 mini pro had better be a big improvement over the Xperia X10. We'll see if Sir Howard can keep all these various ships going in the right direction while still keeping the rest of Sony's diverse operations (like its profitable life insurance business) in line -- it should be an interesting year.
iTunes accounting for 1/4 of all U.S. music sales
Overall, music sales fell by more than a billion dollars last year, but Apple's iTunes is doing better than ever. The digital music distribution service claimed more money than ever, and now represents the biggest U.S. market for music sales, making up over a quarter of total music sales in this country. Unfortunately, not even iTunes may save the industry; total music sales in the US only rose by 1.1 percent over the previous year (which, according to industry analysts, is as good as not growing at all), and the total worldwide market decreased to $17 billion. That's nothing to sneeze at, but the fact is that, even if more people are buying music through iTunes, less music is being sold. The way the trends are going, it looks like actual music sales themselves may start dropping off, even in the United States. So what's the solution? The record industry is actually looking to iTunes now to save their own business. One executive is quoted as saying that an iTunes subscription service might be just the thing to get people interested in buying music again (or at least renting it). It would appear that, with the purchase of Lala, Apple may be laying the groundwork for a service like that. However, there are a lot of other factors going into this market change (not the least of which is that it's easier than ever to make, buy, sell, and share music outside of the record industry system, which includes iTunes), and even a subscription service won't solve the problem.
Apple retail store sales climb 8%
Apple just continues to ignore the bad economic conditions -- sales at Apple Stores have reportedly gone up 8% during the quarter that ended in March. That's a pretty wholesome figure considering no new Apple computers were offered -- before you protest and ask about the iPad and the new MacBooks, don't forget that that's all happened since April started. So there was more traffic in the stores even before there were new shinies to buy. This good news for Apple comes from analyst Charlie Wolf, from Needham & Company. He told investors that the March numbers followed 19.8 percent year-over-year growth of same-store sales in December. In March of last year, Mac retail sales were down about 22%. Same-store year-over-year March Mac revenues were up 31.2 percent, while non-Mac revenues -- including software, iPhones, iPods and accessories increased by 14.5 percent. Starting in September of 2003, Apple has opened 123 U.S. stores. Apple's U.S. market share went from 3% to 9% according to Morgan Stanley. Those are numbers any company would covet. [Via AppleInsider]
Sony returns to profitability as core electronics business struggles
Finally, after closing 18% of its manufacturing facilities and cutting 20,000 heads across its global organization, Sony just posted a profit for the quarter. We're talking an operating profit of ¥146 billion ($1.5 billion) for the quarter on ¥2.2 trillion in sales. Sony's net profitability came in at ¥79.2 billion after three straight quarters of losses, handily beating The Street's mean estimate of ¥33.73 billion sending stock up some 4% at the time of this post. Unfortunately for us gadget nerds, Sony's return to prosperity is largely due to a doubling of sales at Sony's financial unit and a 16% rise in its movie business -- sales from its consumer products and devices division were off 11% thanks to flat-panel TV price competition and component costs. VAIO PC sales were up a slight 2% worldwide while sales of its venerable PS2 (2.1 million units vs. 2.5 million a year earlier) and PSP (4.2 million vs 5.1 million a year earlier) were both off for the quarter. At least the price cuts on the PS3 helped push sales up to 6.5 million from 4.5 million. Still, profit is profit and profit must grow regardless of crummy consumer sales, you know.
Estimates emerge of Apple's Q1 iPhone, Mac sales
Apple typically reports their 1st quarter financial results in late January, so we'll have to wait a few more weeks for the official word. However, the analysts have begun to share their estimates and the numbers are very impressive. Brian Marshall at Broadpoint.AmTech has estimated that Apple sold 3.3 million Macs during the last quarter, according to MacNN. Here's a little perspective: Apple's all-time sales record for Macs, set during the previous quarter, is 3.05 million. That record was a 17 percent jump from the 2.6 million it sold in the same quarter a year ago. Marshall also suggests that laptop sales could be up as much as 19 percent year-over-year at 865,000 units. Meanwhile, Philip Elmer-DeWitt has begun gathering estimates of iPhone sales and posting them at Brainstorm Tech. They range from 11.30 units sold (Brian Marshall at Broadpoint AmTech) to 8.17 units (Mark Moskowitz, J.P. Morgan). The interesting thing is that the low estimate, 8.17 million iPhones sold, would represent a 10.8% increase from the last September's record of 7.37 million if true. Despite would could have been a rocky year for Apple -- Steve Jobs was out for serious health reasons and a lousy US economy -- they did very well. Are you optimistic for 2010 or waiting for the other shoe to drop?
