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iPhone sales dip last quarter largely due to rumors
iPhone revenues and unit sales for Apple's last quarter dropped significantly compared to the previous quarter. Revenues from iPhone sales declined by 18 percent, while unit sales dropped 16 percent -- a sell-through decline of 2.4 million units over the previous quarter. During the recent quarterly earnings call, CEO Tim Cook and other Apple executives confirmed the main cause of the decline: rumors. Apple believes the explosion of iPhone rumors during the latter half of the last quarter materially contributed to the decline in iPhone sales over the quarter. Coupled with pent-up demand for a new model of iPhone after Apple unexpectedly didn't refresh the line at WWDC, this amounted to a US$2.3 billion reduction in revenue from iPhone sales over the quarter. This is the first time that I can recall Apple publicly admitting the impact rumors have had on its bottom line, and that impact appears to have been substantial. Even Gizmodo's early outing of the iPhone 4's design failed to make much (if any) dent in iPhone sales in the quarter preceding the iPhone 4's launch in 2010, but endless speculation about a supposed iPhone 5 launch apparently drove customers to hold off on iPhone purchases in anticipation of a new model. The good news for Apple is that record-breaking sales of the iPhone 4S may have already offset its lost revenue from last quarter. With four million handsets sold in just the first three days after its launch, sales of the iPhone 4S are likely to drive Apple's holiday quarter iPhone sales beyond anything seen thus far. Whether the situation will repeat in 2012 is anyone's guess. The rumor mill is unlikely to stop churning, but hopefully next year it won't cost Apple so much in lost sales in the process.
Apple reports Q4 2011 earnings
After the market close today, Apple reported financial results for its fiscal fourth quarter, surpassing its revenue guidance handily but falling well below the expectations of the usually spot-on amateur analyst crowd. The company reported revenues of $28.27 billion, up almost $7 billion from the year-ago quarter. Earnings per share came in at $7.05. Gross margin was 40.3 percent, versus 36.9 percent in the year-ago quarter. The results represent the best-ever September quarter for Apple. Mac sales in the quarter were 4.89 million; iPads were 11.12 million and iPhones came in at 17.07 million, even noting that the iPhone 4S did not arrive in time to impact the Q4 results. For the full fiscal year 2011, revenues were $108B and earnings were $26B. Apple's stock closed today at $422.24, and is currently down to $404.50 in after-hours trading. We'll be live at 5pm ET with our liveblog commentary on the Apple earnings call. Full press release below. Show full PR text Apple Reports Fourth Quarter Results All-Time Record Mac and iPad Sales Highest September Quarter Revenue and Earnings Ever CUPERTINO, Calif.--(BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2011 fourth quarter ended September 24, 2011. The Company posted quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share. These results compare to revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share, in the year-ago quarter. Gross margin was 40.3 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 63 percent of the quarter's revenue. The Company sold 17.07 million iPhones in the quarter, representing 21 percent unit growth over the year-ago quarter. Apple sold 11.12 million iPads during the quarter, a 166 percent unit increase over the year-ago quarter. The Company sold 4.89 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter. Apple sold 6.62 million iPods, a 27 percent unit decline from the year-ago quarter. "We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to $108 billion and growing earnings to $26 billion," said Tim Cook, Apple's CEO. "Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline." "We are extremely pleased with our record September quarter revenue and earnings and with cash generation of $5.4 billion during the quarter," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the first fiscal quarter of 2012, which will span 14 weeks rather than 13, we expect revenue of about $37 billion and we expect diluted earnings per share of about $9.30." Apple will provide live streaming of its Q4 2011 financial results conference call beginning at 2:00 p.m. PDT on October 18, 2011 at www.apple.com/quicktime/qtv/earningsq411. This webcast will also be available for replay for approximately two weeks thereafter. This press release contains forward-looking statements including without limitation those about the Company's estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the inventory risk associated with the Company's need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company's international operations; the Company's reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company's dependency on the performance of distributors, carriers and other resellers of the Company's products; the effect that product and service quality problems could have on the Company's sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company's financial results is included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC, including the Company's Form 10-K for the fiscal year ended September 25, 2010, its Forms 10-Q for the quarters ended December 25, 2010; March 26, 2011; and June 25, 2011; and its Form 10-K for the fiscal year ended September 24, 2011 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates. Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.
HTC's unaudited Q3 results keep the revenue train a-rollin'
HTC clearly couldn't wait for a pesky audit to tell let the world about its continued financial successes. The Taiwanese handset maker posted unaudited consolidated results for the third quarter -- and, not surprisingly, things are (continuing) to look good for the company. HTC marked a 79.07-percent growth over this time last year, with NT$135,821 million ($4.4 billion) total revenue. And according to HTC, the company's net income post-taxes was NT$18,638 million ($612 million) for the quarter. We'll update the results when we get something a bit more official.
Nokia still ahead of Apple in smartphone sales, according to Gartner
Whoa there, Apple, we know you're starting to feel pretty darn good about besting Nokia and Samsung for the title of world's largest smartphone manufacturer, but hold on for just one minute. Gartner has a different idea of how the numbers game really works, and its interpretation makes all the difference in determining who earns the title. Rather than measuring the number of units each manufacturer ships out to the distributors (as IDC, ABI Research and Strategy Analytics do), Gartner gauges its numbers by how many devices were actually sold to end users instead. Thus, Nokia still keeps its title -- for one more quarter, anyways. The firm is confident Espoo won't be the top smartphone contender for much longer, thanks to the company's grim Q3 outlook as it continues to await the transition to Windows Phone. But hey, there's always Q4, right? Right? Check out the full press release after the break.
Sprint posts Q2 2011 earnings: net subs up, contract subs down, net loss of $847 million
It's another mixed bag worth of earnings for the folks in Overland Park. Sprint just announced its Q2 2011 earnings prior to the market's open today, and while it's obviously doing its darnedest to paint a rosy picture, the raw numbers show a somewhat different backdrop. Despite having its third consecutive quarter of adding more than one million total net new wireless subscribers, the vast majority of those are coming from the (admittedly less lucrative) prepaid side. In fact, the company lost 101,000 postpaid subscribers in the period, and we're guessing that the one-two punch of WiMAX hitting the expansion skids while VZW built out LTE at a breakneck pace didn't help matters. 674,000 prepaid subs were added to the mix (through Virgin Mobile, Boost Mobile, etc. arms), and despite seeing quarterly sequential and year-over-year growth in wireless service revenue, the carrier still reported a net loss of $847 million. In a way, it's the same story on a different day for The Now Network, and while the just-announced LightSquared partnership may end up bolstering things in time, it'll take something a bit more jarring to turn things around by Q3. Or Q4... right, Dan?
HTC does the whole record profit thing again for Q2
Another day, another record profit from the folks at HTC. Surely even the Taiwanese handset manufacturer must be bored of reporting this endless stream of good news, right? Yeah, probably not. The company happily announced this week an impressive second quarter net income of NT$17.5 billion ($608 million), more than double what it reported for the same time period the year prior. Overall revenue for the quarter hit NT$124.4 billion, thanks to the ever-present demand for Android handsets. And revenue from the company is expected to keep on growing in Q3 -- maybe boredom isn't so bad after all.
Clearwire posts Q1 loss amid record subscribers, decides not to sell spectrum after all
You know you're having a wacky quarter when it involves a resigning CEO, lawsuits, and rumors that one of your wholesale partners is courting your potential replacement. But can you still come out on top? Clearwire answered this question during yesterday's Q1 2011 earnings report to investors, and the answer is just as intriguing as the quarter itself. Though it posted a substantial revenue of $242 million, the company was also inflicted with a net loss of $227 million. Don't worry, it gets crazier -- Clearwire experienced record subscriber growth, seeing an increase of 533 percent year-over-year from Q1 2010. Sounds like a contradiction, right? A few factors led to the loss, such as higher costs from network expansion and writing off the "abandonment of projects that no longer fit within management's strategic network plans." A loss is a loss, but at least the future looks brighter; Clearwire predicts it will end the year with nearly a million more subs than originally forecasted (9.5 million, up from 8.8). Saving the best news for last, CEO John Stanton announced his company is no longer feeling the pressure to sell off some of its spectrum, primarily due to its recent $1 billion deal with Sprint. The deal will add enough cash flow to sustain network operations for the next year, so Clearwire just needs to make sure it uses some of the extra cash to buy us all something pretty. The full press release can be found after the break.
Sprint reports Q1 2011 results, adds 1.1 million subscribers
It's financials time and the word hasn't always been rosy for Sprint of late, but this time the company has some good news to share. In this, the first quarter of 2011, Sprint added 1.1 million total subscribers, 846,000 of those were prepaid, the other 310,000 postpaid. Churn was down too, 4.36 for prepaid and 1.81 percent for postpaid, lowest in five years for the former and lowest ever for the latter. Operating income was $259 million on $8.3 billion in revenue, which is up three percent from this time last year, but factor in taxes, lunar landing rights, and all the other fun stuff and the company posted a net loss of $439 million. CEO Dan Hesse called this "slow but steady progress," and the addition of subscribers "a tough streak to keep going as the bar keeps getting higher." A tough streak indeed, but the launch of phones like the Nexus S 4G might just help keep it alive for another quarter.
Panasonic will layoff 17,000 workers globally (updated)
No matter how you slice it, 17,000 is a big number, especially when its seventeen thousand humans looking for jobs. The layoffs represent a four-percent reduction of Panasonic's 380,000 global workforce due to restructuring efforts, according to Nikkei. They are expected to begin this year and will mainly impact employees outside of Japan. Update: Post updated to reflect the actual number of job cuts, not the 40,000 originally quoted by Nikkei or the 35,000 quoted by the AFP. The cuts will come over two years. The news comes as Panasonic reported a ¥40.7 billion ($499 million) loss for quarter, largely on account of a ¥61 billion ($748 million) restructuring cost. Panny says that its bottom line was also affected by a strong Yen, stiff competition in television sales, and the recent earthquake and tsunami.
Nintendo sells 3.61 million 3DS handhelds, but sees 2010 net profit decline by 66 percent
It's a "good news, bad news" kind of a day in Super Mario land, as Nintendo's announcement of a Wii successor has been followed up with the delivery of the company's financial results for fiscal year 2010, which don't make for happy reading. Nintendo's net sales of $12.4 billion for the period ending on March 31st 2011 was 29 percent less than it tallied during the previous year, while its $825 million of net profit was also a staggering 66 percent lower than it earned last year. The 3DS has sold well so far, reaching 3.61 million transactions worldwide, but the Wii is down to 15 million global sales, which marks a 25 percent contraction from its FY2009 total of 20 million. So the impetus for a hardware refresh of the Wii is clearly there, now it's just a matter of waiting for E3 to find out exactly how Nintendo plans to go about it.
AMD collects half a billion in Q1 profit, Fusion APUs now account for half of its laptop shipments
AMD's net income for the past quarter was $510 million, generated from $1.61 billion in total revenues. That should make happy reading for a company that's been raising similar gross revenues previously but finding itself losing cash -- though the more intriguing figures are a little deeper in its latest disclosure. CFO and interim CEO Thomas Seifert has noted that AMD "tripled" its Fusion APU shipments relative to last quarter -- meaning that at least 3.9 million units have made their way out to OEM partners in Q1 -- which now account for "roughly half" of the company's notebook shipments. In less upbeat news, average selling prices in both the microprocessor and graphics divisions were down sequentially, with AMD having to react to pressure from its traditional foes Intel and NVIDIA. You might surmise that with the mainstream Llano APU out and shipping to computer makers, AMD might have a happier second quarter, but the company's guidance is for revenues to be flat or slightly down. A final note of pride is reserved for the Radeon HD 6490M and HD 6750M GPUs, which figured prominently in Apple's latest MacBook Pro refresh and mark a bit of a coup for AMD, who's now responsible for all of Apple's discrete graphics across the MacBook Pro and iMac computing lines. Click the links below for even more intel on Advanced Micro Devices.
Nokia's Q1 2011: smartphone share down to 26 percent, 'more challenging' times ahead
Nokia has just published its first quarterly results in the era of its Microsoft partnership and things aren't looking too bright. Smartphone market share, which had been at 41 percent this time last year and 31 percent in January, has now dipped to 26 percent, while operating profits have taken a 17 percent tumble relative to last year. The company managed to ship one percent more phones in Q1 2011 than in Q1 2010, but its 108.5 million units was an 18 percent drop from last quarter's totals. CEO Stephen Elop describes the first quarter as solid, but warns that the second will be "more challenging." The impact of Japan's disaster earlier in the year will be felt more strongly in Q2, we're warned, with respect to component supply and logistics, while new products won't figure too strongly as Nokia intends to "start shipping the majority of our new products in the second half of the year." Elop is, however, encouraged by the "roadmap of mobile phones and Symbian smartphones" that Nokia has in store for 2011, which sounds good on the surface, but we'd be more comforted if he'd have inserted the words "Windows Phone" or "MeeGo" in that sentence too. Hit the links below to see the full financial details.
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.
HTC breaks its own sales and profit records, keeps riding the smartphone wave to success
Another quarter, another spectacular set of financial results for HTC. The once-small Taiwanese phone maker reports its net income for the first quarter of 2011 nearly tripled earnings in the same period of 2010, now totaling an impressive $513 million. Overall quarterly revenue was in the vicinity of $3.6 billion and the causes cited were, rather predictably, demand for Android smartphones and higher-speed internet connectivity (as provided by the likes of the EVO 4G and Thunderbolt). Guess now we know why the stock markets are loving HTC so much -- the company just can't stop growing! [Thanks, Karan]
Survey says AT&T drops more calls than Verizon, these bar charts don't lie
Wondering which carrier you should buy your iPhone on? There's a survey for that. ChangeWave Research has released the results of a poll that hit 4,068 users distributed across Verizon, AT&T, T-Mobile, and Sprint. Among those four, VZW came out ahead when it comes to dropped calls, with 1.4 percent of respondents indicating they'd received one in the past three months. AT&T, meanwhile, came in last with 4.6 percent. If you look only at the iPhone 4 users the numbers change a little, 1.8 percent vs. 4.8, but the conclusion stays the same. No, this conclusion sadly will not get you around your ETF, but maybe making a pouty face at the AT&T store will help. Update: AT&T let us know it has some doubts about these results. We're not statisticians but we will, out of fairness, link over to this GWS survey from last year that showed 98.59 percent success rate for non-dropped calls. How do your numbers compare?
EVE Online's sixth CSM election results are in
The elections for EVE Online's sixth Council of Stellar Management have come to a close, and earlier today the results were revealed to both excited Fanfest attendees in Iceland and players at home. In previous years, the CSM's role was to collect issues players had with the game and bring them to the attention of developers. This role has morphed over time into a more advisory form, with CCP running ideas by the council and using them to help prioritise the development backlog. This year's elections were heavily influenced by political voting from EVE's nullsec alliances. Organised voting secured spots on the council for several big players in territorial warfare, and a few old faces returned for a further term. Political voting isn't necessarily a bad thing for the CSM, as players who are heavily involved in EVE are still the types of people we want to see on the council. CCP employees can't also be power players in the game, so they miss out on the perspective that alliance leaders and other heavily involved players will have. Participation was huge this year, with a total of 49,069 votes being cast in a two-week period. This represents 14.25% of the total accounts eligible to vote, an increase over last year's 12.67%. Read on for a full rundown of the elected members of EVE's sixth Council of Stellar Management.
Google brings Instant Previews to mobile, makes them seriously useful (video)
We've never had a use for Google Instant Search on mobile, so we didn't expect much when Google's Instant Previews invaded the smartphone realm as well. You know what? They're actually surprisingly useful. Instead of trying to cram additional information into Google's already-crowded mobile website, Instant Previews adds a little magnifying glass next to most every result instead, and clicking on the magnifier brings up a series of cached thumbnails of each page that you can scroll through in portrait or landscape modes. It's a very visual way of finding what you're looking for, and more importantly, it's quick even over 3G, saving time and mobile bandwidth that would otherwise be spent clicking through links one by one. Rather than decipher that long-winded explanation, though, why don't you try it out for yourself or watch our video demonstration after the break?
Drama Mamas: Letter-writers tell what happened next
Drama Mamas Lisa Poisso and Robin Torres are experienced gamers and real-life mamas -- and just as we don't want our precious babies to be the ones kicking and wailing on the floor of the checkout lane next to the candy, neither do we want you to become known as That Guy on your realm. Now that's drama. That part when Onyxia lays the smack down? Squee! Anyway, here it is: the long-delayed (by me), greatly anticipated (also by me) results edition of Drama Mamas. Woohoo! We took the responses we've received from those we've given advice to over the recent months and compiled them here, with links to the appropriate columns. There are other results from our advice that we know of but don't have permission to discuss in public here. For example, sometimes letter-writers will post in the comments with explanations, but they've chosen not to identify themselves -- so we're not outing them here. But that doesn't mean we're hurting for responses. Join us after the break for results from some of the most controversial letters we've posted.
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]
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.
