Q4 2010
Latest
IDC: Nokia, Samsung, Apple are the new top 3 handset makers
The latest figures are in from IDC: the top three global smartphone makers are Nokia, Samsung and Apple, in that order. Drilling down into the figures finds some surprises: Cupertino's third-place with only 8.7 percent of the market, while the giants of Korea and Finland are duking it out with 22.8 percent and 26.6 respectively. LG and ZTE are tied for fourth, but that's hardly good news for Goldstar, given that it's lost a staggering 42.2 percent of its market share in the last twelve months (Nokia was the other loser, eating 8.2 percent). The cause for the drop is in part the world's rejection of feature-phones (dropped faster than fashionistas rightly abandoned Ugg Boots and Jeggings) as millions upgraded to smartphones. After the break we've got the tables in full for anyone who wants to have their mind blown at the sheer quantity of handsets shipped in the last year, both financial and calendar.
Gamestop sees 'all-time high' sales of $9.47B for fiscal 2010
GameStop is gonna need a bigger moneybin, as the company reported "all-time high" sales of $9.47 billion for the 2010 fiscal year (ending January 29, 2011), with a record net profit of $408 million. During the fourth quarter, the company also saw a 4.8 percent increase in sales to $3.69 billion, with a 10 percent increase in net earnings to $237.8 million. During the GameStop investors call, executives stated they would use information on customer purchases extracted from from the PowerUp Rewards program to help determine the 200 locations that will be shut down over the next year due to overlap. It's not all bad news: that same information will be used to open 200 stores "focusing on underserviced markets." GameStop also plans to "pursue opportunistic growth internationally." The biggest sign that GameStop is doing its best to prepare for the inevitable was the 61 percent increase in "console and PC digital offerings," which brought in $290 million during the year.
Sprint posts best customer gains in five years
The decision to move to WiMAX instead of LTE will probably be second-guessed by pundits and investors for years to come, but regardless, Sprint CEO Dan Hesse has emerged as one of the wireless industry's great comeback kids now that he appears to be succeeding in his goal of turning the carrier's tailspin right around. The latest victory comes in the form of Sprint's fourth quarter 2010 results, which reveal its largest subscriber gain since the first and second quarters of 2006 -- yes, 2006. Total adds were 1.1 million, though net postpaid adds were only 58,000, suggesting that prepaid services are the big push right now. Additionally, Sprint reported its lowest postpaid customer churn in the fourth quarter of any year in its history at 1.86 percent. On the downside, the company's still technically in the red, reporting an operating loss of $139 million on revenues of $8.3 billion. Overall, Hesse says they've got "momentum" heading into the new year, anticipating net customer additions in 2011. Give us an EVO 4G 2, Dan, and we might just be willing to agree.
Redbox passed 30,000 kiosks in Q4 2010, but still missed financial expectations
Redbox may be a red-logoed stepchild compared to industry darling Netflix, but according to its parent company Coinstar's Q4 earnings call, it still managed to pass the 30,000 kiosk milestone, increase market share to 30 percent and grow DVD revenue by 38 percent to $319.6 million. Combined with blowing by one billion rentals back in September and avoiding a lawsuit with Fox, the news would have culminated in champagne and karaoke for Coinstar shareholders... except for one thing: new releases underperformed during the last quarter along with Blu-ray rentals. Coinstar CEO Paul Davis was quick to bolster investor concerns on the call, however, stating company management had taken "definitive steps to correct the issues" and was ready to "leverage the First-sale doctrine" -- which refers to a Supreme Court ruling limiting the control of copyright holders over the re-selling of its property -- should studios get sassy in future distribution negotiations. More updates on the company's streaming plans didn't materialize, though, so you'll have to chuck those dreams of instant rental gratification for a buck back in the deep freeze at least in the near term. Otherwise, hit up the source links below to ogle data tables to your heart's content.
IDC says 100.9M smartphones sold in fourth quarter, PCs outsold for first time
In case you had any lingering doubt that the smartphone is the new personal computer, just take a glance at IDC's new global smartphone sales numbers for the fourth quarter of 2010 where we learn that some 100.9 million units were pushed in the three-month period -- up a whopping 87.9 percent year over year. That figure compares to 92.1 million PCs sold during the same quarter, which, though a record for the PC industry, was left in the dust of the smartphone's stratospheric rise. This marks the very first quarter in history that smartphones have outsold traditional computers -- and considering the trajectories that both industries are in, we'd be surprised if they ever flip-flopped again. If anything, IDC and other analysis firms might need to readjust the nomenclature in their reports in a few years if (or when) convergence platforms like the Atrix 4G with its Laptop Dock start to gain traction. Of course, to Bill Gates and others, this technological cross-pollination comes as no surprise -- and really, who can argue with a handheld that's packing PC power? Update: It's also worth pointing out that IDC is still calling Symbian "the market leader" seemingly discounting Canalys' assertion that Android has overtaken Nokia's smartphone OS globally. Guess it all depends upon how your define "smartphone," eh?
IDC: ZTE takes fourth in global cellphone rankings, leapfrogs Apple and knocks RIM out of top 5
You like numbers? Good, because it's the season and amid all these lovely financial reports we've been hitting there are some broader trends to look at. IDC has released its mobile phone report for 2010 and has concluded that, worldwide, the industry grew 18.5 percent over 2009, shipping a massive 1.39 billion units. That's nice and all, but check out this bit about ZTE. The manufacturer boosted its annual shipments by 94 percent, stealing Apple's recently-won fourth place position globally and, in doing so, knocking RIM straight into the dreaded "others" category. Can RIM make it back? Will Apple recover? Will Siobhan and Lucky ever reconcile their differences? Tune in next quarter to find out.
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.
LG posts Q4 results, 2010 profit down 93 percent, cellphone sales down 15 percent
Nokia isn't the only one with bad news today. LG has posted its Q4 results and is taking this time to look back on what can only be described as a dismal 2010 overall. Fourth-quarter revenues were up 9.4 percent over the third quarter, but still resulted in a 246.4 billion won loss -- that's about $226.3 million. LG Home Entertainment sales were actually up almost 16 percent but still posted a loss thanks to cut prices and stiff competition. LG Mobile, meanwhile, saw an eight percent increase in sales over previous quarter, thanks to "strong" performance of phones like the Optimus One, but compared to 2009 sales are down 14.7 percent, a 15.2 percent drop for handsets alone. Looking for some cooler news? Air conditioning sales are up 50 percent!
AT&T posts Q4 financials, 2.8 million subscribers added, revenue up 2.1 percent year-over-year
AT&T's numbers are up, and they're good: $31.4 billion in the fourth quarter of 2010, $653 million more than Q4 the previous year. 4.1 million iPhones and 442,000 tablets were put online by the company that quarter, helping to drive 2.8 million new wireless subscribers, 95.5 million total, and a boost in revenue per subscriber of 2.2 percent. That's $62.88 average per month per subscriber -- maybe ditching unlimited data is paying off. Additionally, the company posted its best ever Q4 wireless churn (subscribers switching carriers) of just 1.32 percent (1.15 percent postpaid), but we're thinking the launch of a certain smartphone on a certain competitor could possibly have that number increasing ever so slightly this quarter. We'll circle back in three months and see where things stand.
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.
Netflix passes 20 million subscribers; focuses on ISP disputes, HBO, Facebook in Q4 results
Netflix just released its financial results for the fourth quarter of 2010 and of no surprise to anyone who was paying attention last year it did quite well by passing 20 million subscribers, more than double its base at the start of 2009. However, per Biggie's Law mo money = mo problems, and it took the opportunity to respond, surprisingly sharply, to potential threats from its Hollywood content providers and the ISPs its Watch Instantly service streams over. News of note going into 2011? A huge focus on personalization including new integration with Facebook and a mention that Apple TV has already surpassed the iPad in viewing hours. It also showed off the one-click Netflix button on an unspecified (looks like Toshiba to us) remote and compared the "consternation" over its success to the rise of Fox as a broadcast network two decades ago. We'll hop on the earnings call in a few minutes for more details, check after the break for more of the details.
GameStop reports $3.02 billion in holiday sales
GameStop has announced that for the nine weeks ending January 1, 2011, the company had sales of $3.02 billion -- a new record. The percentage breakdown across new and used products remained relatively flat year over year, but the sales increase is quite significant from last year's $2.86 billion (and we're still in a bad economy). Company president Tony Bartel noted, "GameStop.com sales rose more than 100% versus last year, far outpacing online industry growth during the period, remaining the fastest growing website in the video game space." Hardware sales improved 7.4 percent during the quarter "primarily" due to the "successful debut" of Microsoft's Kinect. The company's "other" category, which includes PC games and accessories, grew 15.9 percent, due to PlayStation Move and a little game called World of Warcraft: Cataclysm. GameStop's full year results will be announced in March.
Risk: Factions invading PSN today
Six months after Risk: Factions brought its cartoony take on all-out war to Xbox Live, Stainless Games' board game update is seeking out more territory on PlayStation 3. Risk Factions will be included in today's North American PSN update, priced at $9.99. For those of you who have yet to play Factions, it's a revamped version of the original, with a single-player campaign about war between "factions" like the Yeti, Zombies, and Cats. It also includes a "Classic Mode" for those who prefer not to take risk with the Risk formula.%Gallery-111800%
Secret of Mana on iPhone greenlit, should hit App Store tonight
We were pretty skeptical about whether the iOS version of Secret of Mana, which was announced at E3 earlier this year then never heard from again, would make its 2010 launch target. According to an update on Square Enix DLG's Facebook page, it's going to make it just under the wire -- producer Masaru Oyamada revealed that the game has been greenlit for release on the App Store, and will arrive there sometime before the end of the month. According to Touch Arcade, the game just appeared on the New Zealand App Store, which usually means it will arrive in North America by the end of the day. Keep an eye out! The Square Enix Facebook post didn't mention any new features which have been added to the classic early-90s gem, but there were a few screenshots of the game's user interface. It looks like a pretty standard action-RPG control scheme; whether it will be solid enough to let us tackle Mana's occasionally impossible bosses remains to be seen. (Here's looking at you, Spiky Tiger.)
Dungeon Defenders delivers Unreal Engine to Android next week
Will Unreal Engine be able to take over the Android sales charts, much as it has on iOS with Infinity Blade? Trendy Entertainment hopes so, as it plans on bringing the first Unreal Engine-powered game to Android phones next week, on December 23rd. Dungeon Defenders: First Wave is a tower defense-RPG hybrid that our own Mike Schramm described as "fast-paced, complex and, at times, utterly overwhelming." Dungeon Defenders is already available on iOS for $2.99, and we're assuming the Android version won't differ significantly. If you're wondering if the game will work on your Android device, check out the system requirements after the break.
NOVA 2 evolving mobile combat on Dec. 16
Things we learned this morning from GameLoft: NOVA 2, a sequel to last year's iPhone FPS NOVA, will be released on the iTunes App Store on December 16 (that's this Thursday), in case you don't have your 2010 Halo Clones novelty calendar handy. "NOVA" is an acronym that stands for "Near Orbit Vanguard Alliance" (which is totally different from an Orbital Drop Shock Trooper or the First Encounter Assault Recon folks). The game was also given a fully featured trailer (found after the break), with everything from vehicle combat to landspeeder chases. If it doesn't prove to you that these dudes are totally vanguards, we're not sure if anything will.
MonkeyPaw bringing Galaxy Fight to PSN import store today
Another weird Japanese PlayStation game will hit the PSN Import Store today courtesy of MonkeyPaw Games. Galaxy Fight, originally released on Neo-Geo and Saturn in 1995, was Sunsoft's first fighting game. It's about ninjas, monsters, robots, and other assorted characters, who travel from planet to planet to beat each other up in infinitely-scrolling stages. It also marks the first appearance of the living punching bag, Bonus-kun. Galaxy Fight will be available with today's PSN update, for the usual $5.99 price. As usual, it's in Japanese, but ... it's a fighting game. You'll figure it out. And MonkeyPaw posted instructions.
