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Sony's Q1 earnings show a $35 million net profit, mobile revenue jumps 36 percent
Sony's first earnings report of the new financial year is in and it's eked out a profit, albeit a small one. The $35 million net profit is an improvement from last year's results for the same period, and the good news is most pronounced in its Mobile Products & Communications department. Revenue grew 36 percent from last year, partially due to changes in the value of the yen, but also thanks to higher sales for smartphones (9.6 million units), and a higher average selling price. The games division recorded an operating loss for the quarter, as sales of the PS3, PSP and PS2 dropped slightly while spending on R&D for the upcoming PlayStation 4 rose. Sony's new TV strategy may have shown some results, with year-on-years sales up 18.2 percent and attributed to an "improved product mix in LCD TVs" and cost reductions.
Strategy Analytics: Samsung topped China smartphone share in Q1
Many analysts believe that Samsung led the Chinese smartphone market throughout much of 2012, and there are already signs of a repeat coming in 2013. Strategy Analytics now estimates that the Galaxy maker sold 12.5 million smartphones in the country during the first quarter of this year, or enough to stay in front at 18.5 percent market share. Others didn't come close, although there was a fierce battle for the runner up spot. Huawei (8.1 million) barely pushed past Lenovo (7.9 million) to become number two in China, while Coolpad (7.1 million), ZTE (6.4 million) and Apple (6.1 million) were locked in their own fight for fourth place. While it's true that market share isn't the only yardstick for smartphone success, having the most popular devices in the world's most populous country undoubtedly helps with bragging rights.
Samsung estimated to make 95 percent of Android device profits
Yes, we all know that Android has the prevailing device market share right now, but which companies in that group are actually making money? According to Strategy Analytics' estimates for Q1, it's Samsung... and virtually no one else. With $5.1 billion of Samsung's $7.9 billion operating profit last quarter believed to have come from Android, the Korean firm reportedly accounted for 94.7 percent of Android's hardware profit engine. The only other company that made enough money to stand out was LG, whose $119 million in mobile profits got it to a much smaller 2.5 percent. HTC, Sony, ZTE and the rest were lumped into the ignominious "other" category, at 2.7 percent. The figures don't mean that all other Android manufacturers are floundering, but they do suggest that Samsung is in a much better position to survive any market turbulence.
Dish Network adds 66,000 broadband, 36,000 TV customers in Q1
While Dish Network's $25.5 billion bid for Sprint continues to wave in the breeze, the company has reported its earnings for the first quarter. Net subscriber growth only totaled 36,000 compared to 104,000 in the same period last year, as subscriber churn rose due to a price hike earlier this year. Its profits were lower in Q1 2013 than 2012 partially due to Blockbuster-related drops and a boost received last year from its DBSD purchase. (We're guessing higher content costs for things like AMC didn't help either.) A growing percentage of the 654,000 new customers it added got Hopper DVRs, which also raised costs a bit for the new set-top boxes and all those TV advertisements its been running. Even as it waits to add some terrestrial LTE to its "Seinfeld" wireless data strategy, the dishNET satellite broadband service added 66,000 customers in the quarter, up from from just 6,000 new customers in Q1 2012. We'll have to wait for the earnings call at noon to see if CEO Charlie Ergen has anything else to say about its battle with Softbank to buy Sprint, but all of the data is in the press release and slide below.
Tesla turns a $15 million profit in Q1 2013 on $562 million in revenue (update)
Despite a bit of bad press for its Model S and a less-than-ideal close to the 2012 financial year, things have been looking up for Tesla. Sales are on an upward climb, company CEO Elon Musk has sworn to deliver more superchargers, better service for customers and continues to tout his EV's high resale value. After promising in Q4 of 2012 that Tesla would turn a profit the next quarter, the EV manufacturer has done so -- generating $15 million in net income and $562 million in revenue in Q1 2013. During the first quarter the company built 5,000 Model S cars, and is scheduled to build the same number in Q2 to keep pace with the 20,000 orders expected this year. To better service all those vehicles, Tesla opened 12 new service locations in Q1, with 18 more to come online by the end of 2013. Additionally, the company plans to start deliveries of Teslas in Europe in Q3. An investor call with Mr. Musk will be starting shortly, and we'll update things here should he have any other news to share. Update: During the call, Musk said that the company plans to build upon its newfound financial success by continuing to focus on increasing production efficiency for the Model S -- which is why the Model X has been delayed until late 2014. He also made mention of the fact that roughly half the folks buying the 60 kWh Model S are upgrading to supercharging hardware at purchase (85kWh cars have it standard), and he expects that number to grow as the Supercharger network grows in 2013.
HTC expects revenues to jump 63.6 percent in Q2 2013, will continue to support Windows Phone
HTC's financial results released today don't contain much good news -- take a quick look at the unaudited figures we reported last month. But despite its worst ever quarterly profit earlier this year, it's banking on a substantial turnaround over the next few months. During an earnings call today referencing its audited results, HTC said that its outlook for Q2 2013 includes a revenue jump to around $2.4 billion -- a huge increase from $1.45 billion registered in Q1. HTC CEO Peter Chou said that the company was fine "in terms of cash flow," and that it would continue to support both Android and Windows Phone hardware in the near future. How about those recent supply woes? "We are working as hard as possible to meet the demand everywhere." The company, however, wasn't giving away any handset sales figures, something that the competition does enjoy flourishing. When asked whether he was concerned with its recent hardware being copied, Chou was frank: " In this industry, everything can be copied. I think there's no point [in] thinking you can prevent this... but whether they would get this original quality -- I think the most important [thing] is that you are first." Richard Lai contributed to this article.
IDC: Android topped tablet share in Q1 at 57 percent, Apple led manufacturers
We were expecting a changing of the guard among tablets given the rise of several competitors throughout in 2012, and we've seen just that in IDC's market share estimates for the first quarter of 2013. The research firm shows Android having almost reversed the share it held a year ago, claiming the top spot at 56.5 percent; Apple's huge spike in year-over-year iPad sales wasn't enough to keep it from dipping to 39.6 percent. Microsoft's estimated performance tells a more complex story, however. Its second quarter of Windows 8 and RT sales involved a big year-to-year jump as well, but it was also starting largely from scratch -- the combined Windows platform was still tiny at 3.7 percent. The pecking order remained mostly the same among individual manufacturers, although the charts here explain just why OS share shifted so much in the winter. While Apple remained comfortably in front with its 39.6 percent, just about every rival made a dent: Samsung, ASUS, Amazon and Microsoft all gained at least a small amount, even if no one manufacturer posed a major threat. IDC is providing shipping numbers that don't necessarily reflect the on-the-ground sales, especially when everyone beyond Apple declines to report official numbers, but they suggest that tablets like the Nexus 7 and Surface Pro have found at least a small audience.
Samsung's official Q1 earnings show $6.4 billion in net profit
Samsung Electronics has released its Q1 2013 numbers and as it predicted a few weeks ago, business continues to boom. Operating profits are 8.78 trillion won as predicted, while net profit is up to 7.15 trillion won ($6.4 billion), up sharply from the same quarter last year when its net profit was 5.50 trillion won. Last year at this time we were still anticipating details on the Galaxy S III, but this time around Samsung is on the eve of its worldwide launch for the Galaxy S 4, which should push sales even higher. According to the documents, it's maintained a "steady pace" for Galaxy S III sales, while Note II sales increased and the Tab2 series increased momentum. The news isn't as good for PCs, shipments decreased due to weak demand. earnings in its TV business were also down from last quarter, blamed on the same lower overall market demand noted by LG in its earnings. While analysts asked the questions w'ed like to hear more about on the earnings call -- software updates to Android phones, the future of Tizen -- the responses were predictably bland. Samsung did mention it plans to push Android updates to customers faster than the competition, a trend that hopefully catches on. Hit the link below to check out a PDF with all the slides, or look after the break for a press release detailing this quarter's results.
Amazon first quarter profits fall to $82 million as sales jump 22%
Amazon's Q1 for 2013 was a bit of a mixed bag. The company saw net income drop 37 percent year-over-year to $82 million, though its net sales were up 22 percent to $16.1 billion. The sequential drop in profits was small (from $97 million) considering Q4's holiday inflation. Product sales accounted for the vast majority of that income, with its various branded services only pulling in $2.8 billion. The United States is still the company's biggest market, with $9.4 billion of that sales revenue coming from here. The rest of the globe only accounted for $6.7 billion, though media was particularly strong in those markets. Media sales were $2.55 billion over seas and just $2.51 billion in the US. Looking over the numbers, its clear that Amazon has a steady stream of reliable income that is continuing to grow. In fact, the company expects another quarter of double-digit growth year-over-year for Q2. But, as we've learned, there are also huge expenses involved. And guidance for next quarter tops out at $10 million in net income -- and a potential loss of up to $340 million (though such a steep fall seems unlikely). Unfortunately, there are no specific numbers for its various kindle products buried in the report (which you'll find after the break), but hopefully the 5PM ET call will offer a comprehensive breakdown. Updates from which you'll find after the break.
Sprint reports quarterly net loss of $643 million, sees iPhone sales drop by a third
Sprint managed to lose a million customers and over a billion dollars last quarter. This time it's not quite as bad, with a net loss of $643 million on revenue that was broadly equivalent to the same quarter of last year (around $8.8 billion). Those following the carrier's big iPhone gamble will note that sales of Apple smartphones fell by around a third relative to last quarter, from 2.2 million down to 1.5 million. Total smartphone sales reached 5 million, which Sprint describes as "strong" and which helped it to slightly increase the amount of profit it makes from each postpaid customer. However, this wasn't enough to offset the impact of losing another half a million customers, specifically due to the ongoing exodus of Nextel subscribers. Partly as a result of this, the company's revenues continue to be wiped out by its huge costs of doing business -- not that its potential suitors seem to mind.
LG Q1 earnings come in lower than last year, but phone sales are up
LG has released its earnings report for the first quarter of 2013, and while they were down overall from last year, there is good news to report for its phones. A net profit of $20.3 million is lower than Q1 2012's $214 million -- but better than Q4's lawsuit-related $428 million loss -- blamed on weaker earnings in its home theater business. The good news is reserved for phones, where sales were up 30 percent from last year thanks to devices like the Optimus G (original, Pro and Nexus 4) and L series. Home Entertainment sales dropped to their lowest level in the past year, blamed mostly on a decline in plasmas and professional displays. Q2 is expected to be another good one as the Optimus L Series II, 5.5-inch Optimus G Pro and Optimus F ship worldwide. According to LG its LCD sales were actually up thanks to growing demand in Europe and China, but profits took a hit because of increased competition. While it doesn't expect the overall market to change, it is looking for better results in Q2 as its new Smart and 3D TVs hit shelves along with upcoming 4K and OLED sets. We'll keep digging through the numbers for more details, check the source link below to take a look for yourself.
ARM sees 44 percent profit increase in Q1 2013, ships 2.6 billion ARM-based chips
ARM has had a great quarter -- again. This time it's seen pre-tax profits soar 44 percent, while revenues are up 26 percent (to $209.4 million) since the same period last year. The company's thanking the continued adoption of its low-power chip designs, encompassing smartphones, mobile computing and even digital TVs and wearable tech. The advanced tech within its ARMv8, Mali and big.LITTLE ranges has meant the company can command higher royalties per chip. In total, 2.6 billion ARM-based chips have made their way into the gadgets this quarter, an increase of 35 percent year-on-year, with embedded hardware up a hefty 50 percent since Q1 2012. It's seen even better performance from its Mali graphics processor shipments, which are up five times since the same period last year. As outgoing CEO Warren East notes: "Even low cost smart devices can contain multiple ARM-based chips and be based on ARM's advanced Cortex-A series technology and Mali graphics processors." With new friends on board for the near-future, the good times are likely to continue.
Netflix added 3 million subscribers worldwide in Q1, will offer a 4-stream $11.99 plan
Netflix has reported its financial results for the first quarter of 2013, and in that period it's added over 3 million customers worldwide. Domestically it added 2.03 million customers alone, pushing its total number over 30 million (including trial users) in the US. That means it's passed HBO in paying subscribers for the first time ever, while notching $2.69 million in net profits on $1.02 billion in revenue for the quarter. Internationally there were over a million new sign-ups and it's planning to launch in a new European market during the second half of this year, which we should hear more about on its Q2 earnings call in July. One change all users will notice is to its package of streaming plans, as CEO Reed Hastings mentioned an $11.99 per month option is incoming that will allow subscribers to stream as many as four videos simultaneously, up from the current official limit of two. There's some question over whether Netflix will begin to crack down harder on account sharing, but Hastings claims he expects less than one percent of users to opt for the new plan. The company is also continuing to test the personalized profiles we got a peek at during CES, and expects to roll them out "in the coming months." Another major note is that as it expands its suite of original content, it's shifting focus away from some of existing "bulk, nonexclusive" licensing deals and will let a major one from Viacom expire in May. Specifically referenced is content from Nickelodeon, MTV and BET, although it's negotiating for access to particular shows. In the future, its preferred option will be exclusive deals with the studios that produce the shows, like the one it announced earlier this year with Warner. Check after the break for a few more details, including updates on the progress of some of its original series.
Google Q1 2013 earnings: $14 billion in revenue, $3.35 billion net income
Google's out with its first quarter earnings this afternoon, and it's reporting an even $14 billion in revenue, with net income clocking in at $3.35 billion. That's a 31 percent increase year-over-year on the revenue side, and nearly a half billion dollar increase in net income (up from $2.89 in the same quarter of 2012). Compared to more recent quarters, though, the growth is a bit more flat: both Q3 and Q4 of 2012 were also around the $14 billion mark. In a statement, CEO Larry Page nonetheless characterized the numbers as a "very strong start to 2013," adding that Google is "working hard and investing in our products that aim to improve billions of people's lives all around the world." As for how the company's Motorola acquisition is working out, that division has seen a fairly steep drop in revenue, from $1.51 billion in the last quarter of 2012 to just over $1 billion this quarter, with it reporting an operating loss of $271 million. You can dig through all the numbers yourself in the press release after the break and at the source link below.
IDC: PC shipments in Q1 faced their steepest known drop to date
If Windows 8 is the ticket to a bounce-back in PC sales, it's going to be a long, slow recovery. At least, as long as you ask IDC. It estimates that worldwide computer shipments in the first quarter of 2013 fell 13.9 percent to 76.3 million, which is the steepest quarterly drop the research firm has recorded since it started tracking PCs back in 1994. While the exact factors at work aren't clear, IDC blames it on a mix of customers spooked by Windows 8's unfamiliar interface, the continued rise of mobile devices, and the decline of the netbook. This isn't helped by the higher typical prices of touchscreen PCs, or by restructuring efforts at computing giants like Dell and HP. Who's reigning in this apparently declining PC empire, then? Worldwide, it's a different picture than it was a few months ago: HP is back on top at 15.7 percent, followed by Lenovo, Dell, Acer and ASUS. The American climate is somewhat more familiar, with HP in front at 25.1 percent while being chased by Dell, Apple, Toshiba and Lenovo. With the exception of Lenovo, however, virtually all of the manufacturers involved saw at least some decline in their PC shipments. To IDC, that's a sign that vendors and Microsoft need to find an antidote to the crazes for smartphones and tablets -- and find it quickly.
iPhone maker Hon Hai sees sudden 19 percent sales drop in 2013 Q1
Reuters is reporting that Hon Hai, the manufacturer that everyone else knows as Foxconn Technology, saw its sales tumble in the first quarter of this year. In the post-Christmas season, the iPhone maker brought in $26.9 billion -- a fall of 19 percent compared to the same quarter last year. It's a strange turn of events, seeing as 2012 turned out to be a record year for the company, but Reuters interprets the figures as being a symptom of a drop in demand for the Apple products that Hon Hai builds and is largely dependent on -- an issue that has been brewing for a while now.
HTC pays price for One delays, reports worst quarterly profit so far in Q1 2013
Instead of reaping the rewards of putting out a lovely new flagship, HTC has just reported its lowest ever profit -- a mere $2.8 million in unaudited net income -- during the first three months of this year. That compares to $173 million in the same quarter of last year, representing a pretty catastrophic fall of around 98 percent. Underlying revenue dropped by a third to $1.4 billion. The reason? The top-end smartphone on which the company's fortunes currently rest, the HTC One, mostly missed its scheduled global arrival date in March due to manufacturing delays, so it effectively didn't exist during the period in question. It has only just become available to pre-order in the US and won't start shipping to customers until April 19th. At this rate, the HTC First -- the manufacturer's second big announcement of the year -- might actually deserve its name.
Samsung's estimated profits for Q1 top $7.7 billion on the eve of the Galaxy S 4
As it's known to do, Samsung Electronics has released early estimates for its quarterly earnings and Q1 of 2013 was another good one for the company. According to reports, its operating profit is expected be around 8.7 trillion won ($7.7 billion), pushed by sales of its current smartphone lineup even as its new standard bearer, the Galaxy S 4, waits in the wings. The projections slot in lower than its record setting $8.27 billion Q4 2012, but still up significantly from last year's $5.16 billion operating profit for the same period. More detailed breakdowns by division will be available in the full report April 26th, but we're getting the idea they're doing just fine.
T-Mobile reports 'first positive branded (customer) growth in four years'
Right on the heels of its announcement of becoming the "UnCarrier", T-Mobile has dropped an early update on customer count for Q1. While its full earnings won't be announced until May 8th, it noted a net increase of 579,000 customers for the period, compared to a net loss of 349,000 in Q4 of 2012. It claims the increase was primarily due to continued focus on growing its MVNO customers base. Postpaid customer losses for Q1 are 199,000, far better than Q4's drop of 515,000, and 510,000 in the same period last year. President and CEO John Legere is certainly looking at the bright side (and keeping his language clean this time) claiming the data represents "positive momentum and the first positive branded growth in four years." We'll wait until the dollars and cents are counted -- and results from after its switch to no-contract plans and unsubsidized phone pricing are in -- before flying the magenta victory flag.
Apple's "disappointing" quarter out-performs hugely profitable companies
In many of the financial press accounts of Apple's Q1 2013 results, the terms "disappointing" and "flat" were used to describe the company's performance. Well, as you can see in the graphic above from Statista, Apple's performance was far and away better than that of any other US company. How good was the first quarter? It was the most profitable quarter ever for a tech company at $13.1 billion in net income. The previous record? Apple's Q1 2012 net income at $13.06 billion. How did the other tech companies do? Microsoft came in a distant second place at $6.4 billion, while IBM trailed in third place at $5.8 billion. Apple's profits were more than those of Microsoft and IBM combined. Why Apple's share price is bumbling around the $460 mark at this point is still a matter of conjecture. Legg Mason portfolio manager Bill Miller said it could be that investors are beginning to think that Apple products no longer have the attractiveness to consumers that they used to. His idea for bringing the share price up? Apple should increase the dividend it began paying to shareholders. [via AppleInsider]
