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Lenovo's Q1 shows 'record high' market share, profits up 30 percent to $141 million
After delivering an overachieving laptop, Lenovo has delivered financial results that also exceeded expectations, producing $8 billion in revenue and $141 million net profit. Those figures are up 35 and 30 percent respectively over last year, which the company has chalked up to a higher than ever market share of 15 percent. That growth came in part from a 59 percent sales bump in emerging markets like India and Brazil, on top of a 9 percent spurt in its home market -- lifting the company 24 percent in world-wide PC shipments for the quarter. Lenovo has also become the second largest player in China's smartphone market, after Samsung, now up to a 13 percent market share. CEO Yang Yuanqing also proclaimed that, unlike other Redmond partners, he wasn't stressed about Microsoft's Surface tablet -- and that his company had "much better hardware" than the software giant.
NCsoft weathers $6M loss in Q2
NCsoft may have more banking on Guild Wars 2 than once thought. The mega-publisher announced that its second quarter earnings were lower than expected; it posted a $6 million loss for the period. Revenues were down 12% from last year to $130 million, of which a vast majority came from NCsoft's online titles. The company stated that it dipped into the red due to rising labor costs, an increased marketing budget for Blade & Soul's Korean launch, and the acquisition of Ntreev. Aion was also blamed for the company's financial woes, as revenues in that title sharply decreased due to fewer microtransaction sales. Both Lineage titles composed a great share of the company's revenues, with the first game producing 45% of sales and the sequel 13%. NCsoft said that it is banking on Guild Wars 2 to produce a profitable third quarter, however.
Nikon makes $201 million quarterly profit, nearly 50 percent drop from last year, blames strong yen
Nikon's odd financial calendar means that the camera maker is announcing its first quarter results for 2013. The confusingly-dated documents show that it isn't having the best Spring / Summer, since while it pulled in a net profit of $201 million, that figure is down nearly 50 percent on the $392 million it made in the same period last year. It sold a record number of interchangeable-lens cameras, lenses and a good number of compact cameras, but that was offset against the high cost of the yen. Its other businesses, Precision Equipment and Instruments both suffered thanks to Government spending cuts, a "harsh business climate" and the now age-old problem of the high exchange rate. It's expecting the situation to remain the same in the next three months, with booming camera sales weight against losses in its other businesses -- with a projected profit of $143 million anticipated in Q3.
Huawei 1H 2012: profits dropped 22 percent, still made $1.37 billion
Huawei's financial figures for the first six months of 2012 reveal that the Chinese behemoth brought in turnover of 102.7 billion yuan ($16.08 billion), making a profit of 8.79 billion yuan ($1.37 billion). That's not exactly bad news, but the figure is 22 percent smaller than the same period last year -- leading the company to blame the drop on the global economy and saying that the telecoms business is a "significant challenge." It humbly bragged that it had deployed 38 of the 80 commercial LTE networks worldwide and that the upstart now held over 12 percent of the Chinese smartphone market. It also claimed that the Ascend P1 and Ascend D1 had become bestselling handsets in China, Western Europe, Japan, Australia and Canada -- which might have prompted CFO Ms. Meng Wanzhou to be "optimistic" about the company's performance in the second half of the year.
Final Fantasy XI is the most profitable in the franchise
Behold the power of MMOs to generate a Fort Knox of income. Square-Enix announced that out of all of the Final Fantasy games from 1987 through today, Final Fantasy XI has been the most profitable. This comes from Square-Enix President Yoichi Wada, who was hyping the title over the weekend amid the news of its upcoming expansion. Wada also said that if you tallied the accumulated play time of all current FFXI players, you'd end up with a mind-boggling 200,000 years /played. Final Fantasy XI recently celebrated its 10th anniversary and announced its first new expansion in six years, Seekers of Adouli.
ABI: Apple and Samsung have over 55 percent of the smartphone space, 90 percent of its money-making
Tech finance sleuth Horace Dediu was clearly astute when he determined that it's really Apple and Samsung's smartphone world, and we just live in it. ABI Research just estimated that, combined, the iPhone and Galaxy creators were responsible for more than 90 percent of the profits in the first quarter of 2012 -- mostly through carving out more than 55 percent of the total market share for themselves. We already know that only a handful of companies, like HTC, were making any kind of profit at the same time; ABI, however, has underscored just how much of a mountain Nokia has to climb to reclaim its glory days. For Nokia to completely make up for Symbian's decline, shipments of Lumia phones will have to jump a staggering 5,000 percent this year. The Finnish phone maker is certainly hopeful, but with the 80 percent growth rate in China mostly being led by locals like Huawei and ZTE, that's no mean feat.
DirecTV adds 81,000 subscribers during Q1 in the US, increases revenue by 12 percent
Unlike with Comcast, Wall Street experts weren't surprised by DirecTV's latest Q1 results -- in fact, they were quite disappointed. The satellite provider only managed to add 81,000 subscribers in the US of A during the quarter, which is more than a 50 percent decrease compared to last year's Q1 (184,000). Meanwhile, DirecTV did see a 12 percent increase in revenue, pushing the total to about $7.05 billion. That last bit thanks in large part to landing over 590,000 new customers in Latin America, though that didn't keep its current share price from dropping about 2.7 percent to $46.60. Nonetheless, DirecTV CEO, Mike White, says his company "delivered another strong quarter [..] highlighted by double-digit revenue, EPS and cash flow growth." Us? Well, we're wondering why those "roadside ditch" commercials aren't luring more Stateside folks away from cable...
Toshiba made $898.8 million profit, could manage to lend you twenty bucks
Toshiba isn't going with the flow this financial season, bucking the trend and posting a healthy (albeit reduced) net profit of 73.7 billion yen ($898.8 million). Whilst down from $1.7 billion in 2010, the company points to the European debt crisis, Japanese Earthquake and high oil prices as the barriers to further success. Unlike its local rivals, Tosh branched out early into "social infrastructure," building everything from radiation detectors, power plants and LED light bulbs -- businesses that made a stack of cash while its computer and TV businesses slumped. Unencumbered by these crises in the future, the company is projecting to make $1.68 billion across the next 12 months -- at which point it might treat itself to a spa day, or something.
Rovio makes a Mighty Eagle's $68 million in profit in financial squawk
Rovio has announced that in 2011, it made a huge $106.3 million turnover and a whopping $67.6 million in profit (before tax), showing that flinging feathery fowl is a very serious business. Fueled by the success of Angry Birds, Seasons and Rio, the company grew by a factor of eight in the last year, from 28 employees all the way to 224. The company adds that the three games were downloaded 648 million times and are now used by 200 million daily users, while sales of merchandise contributed to around 30 percent of the total revenue. The report adds that the only barrier to future profits is if people stop buying new smartphones, but we're not sure that's likely to be the case for a while.
Dev survey: 59% of app devs not breaking even
A marketing firm named App Promo has released some data on a developer survey it took, asking over 100 developers about how they were doing with selling and marketing their apps. Of those developers asked, over 59% told App Promo that they weren't even breaking even on the App Store. And a full 80 developers said they weren't making enough from App Store earnings to "support a standalone business." App Promo also discovered (though it's not quite as surprising, given that this survey was done by a marketing firm) that the biggest earners they talked to spent almost $30,000 on marketing for their apps, and dedicated up to 14% of their time promoting and selling the app itself. That makes sense -- apps with bigger budgets and marketing money are more likely to be seen in the busy App Store listings. Outside of App Promo's promotion here, that 59% stat means a lot. There is a lot of action on the App Store, it's true. But it's becoming harder and harder for individual developers to find a profitable place on Apple's platform.
Comcast earnings beat expectations for Q1
Looks like it's time for a little endzone celebration in the City of Brotherly Love this week. Comcast issued its earnings, and things are looking up, marking a 30 percent profit increase for the first quarter. Revenue for the cable company is at $14.9 billion, beating out analyst estimates of $14.4 billion. The company did continue to shed video customers however, dropping around 37,000, although it did experience more customers adding on internet and phone service. The Associated Press chalks the happy results up to Super Bowl advertising and the popularity of the company's broadband offerings.
Apple defends its tax practices in the New York Times
A recent New York Times article slams Apple for avoiding billions in state and federal taxes using common corporate loopholes. Apple didn't take kindly to this report and has issued a four-paragraph response defending its practices. The Cupertino company says it pays "an enormous amount of taxes which help our local, state and federal governments." Besides paying taxes, Apple also points out that its "among the top creators of American jobs in the past few years." You can read the full response on the New York Times's website. Also of note, Forbes magazine has pointed out that one of the key numbers in the Times story -- Apple's supposed 9.8% effective federal tax rate -- is hooey.
Motorola Solutions reports Q1 2012 sales of $2 billion, expects jump in Q2
Motorola Solutions (MSI) -- the less familiar Motorola that makes radios, barcode scanners and such for government and enterprise sectors -- just posted sales of $2 billion for the first quarter of 2012. This is a seven percent boost over Moto's results from the same period last year, and that growth reflects an 11 percent jump in government sales. It wasn't all rosy for Motorola this quarter, though: Profit was down two-thirds to $157 million, and sales to large businesses slipped two percent. MSI (not that MSI) expects second-quarter sales to grow six percent compared to last year's earnings, so it doesn't look like government clients will be dropping those wearable displays any time soon.
ARM reports revenues up 13 percent, bicep-curling profits up 22 percent
UK-based chip designer ARM just announced another booming quarter, with revenue up by 13 percent to $209.4 million. Pre-tax profits were even stronger, growing 22 percent year-over-year to $100 million. Not a bad profit margin by anyone's standards, and due to entirely to the Cambridge outfit's business model, which has seen 22 new processor licenses signed this quarter. That includes everything from the smallest Cortex-M class chips for use in the "Internet of Things" right through to the mini-monster Cortex-A15. There were also two new signings for the Mali graphics core, which is still proving its worth in some of the latest Samsung Galaxy devices. Overall, the number of chips that went into mobile phones and mobile computers remained steady, but the shipment of chips for other types of consumer and embedded devices grew by 15 percent year-on-year, proving that ARM not only has muscle, but also fingers in pies.
Huawei 2011 financials: 20 million smartphones sold yet profit down 53 percent
Huawei's annual earnings report is out and it's a mixed bag, since while turnover increased by 11.7 percent to 203.9 RMB ($32.3 billion), profits plummeted 53 percent to 11.6 billion RMB ($1.8 billion). Revenue from overseas sales (138.4 billion RMB) equated for over half the company's total income and it boasted of having sold 150 million consumer devices, including 20 million smartphones in the year. The company didn't provide reasons for the drop in profit, emphasizing that it's increased R&D spending by 34.2 percent to 23.7 billion RMB ($3.75 billion) and that in any event, it's got around $30 billion of assets that can shoulder the brunt of a bad year. However, the company may not see a rosy 2012 either, after both America and Australia refused to give the company big infrastructure deals (Huawei's bread and butter) thanks to allegedly close relationships between the company and the Chinese government. It seems to be following a similar trajectory to rival ZTE, which also felt margins squeeze as it entered the global retail space and felt the heat when its political dealings were thrown in the spotlight.
Nokia: Two million Lumia phones sold in Q1 but profits still falling
Nokia's announced preliminary information on its forthcoming Q1 results due on April 19th. It's reportedly sold €4.2 billion worth of phones, €2.3 billion coming from the sale of 71 million dumbphones and €1.7 billion coming from smart devices. On the upside, sales of the Lumia handsets are still growing, selling two million of the series in the last three months alone. However, "competitive industry dynamics" and the cost of its painful transition into a modern smartphone player have meant the numbers aren't too pleasing. The figures mean that the company will make a loss of around three percent below "break even," but Stephen Elop remains bullish, saying that his team is "continuing to increase the clock speed of the company" and that "the change is tangible."
China Unicom says partnering with Apple was a good thing, we feign surprise
China Unicom saw a 14 percent bump in profits for 2011, with company execs attributing much of that gain to its exclusivity deal on the iPhone. Despite the increased income, China's second largest network still fell short of analyst estimates, with much of the blame being pinned on the carrier's need to increase capital spending. New customers means network expansion and more handset subsidies, and the firm's augmenting its spending by 30 percent to 100 billion Yuan (about $16 billion) to keep up. This extra expense caused stock in the network to cool a little, falling 3.1 percent after the announcement. Not so good news then, considering what's around the corner.
Early estimates say new iPad cuts Apple's profit margins
These estimates are always to be taken with a grain of salt but, if UBM TechInsights is to be believed, Apple is cutting into its precious profit margins to keep the price of the iPad flat. According to the research firm, the total cost of components in the 16GB 4G model is around $310 -- not including assembly and shipping. With a final price of $629, Cupertino is pulling in about a 51 percent profit, a sizable drop from the estimated 56 percent profit margin on the similarly specced iPad 2 at launch. A large chunk of that increased cost of production is made up by the new retina display, which is estimated to cost around $70, and the LTE chipset, which UBM priced at $21. In contrast, current pricing on the panel in the iPad 2 and its 3G radio rest at around $50 and $10, respectively. We're sure Tim Cook isn't losing any sleep though, there are plenty of other ways to make up that lost dough -- like selling more iPads.
Nokia submits yearly SEC report, details €1.4b loss and Windows Phone risks
Nokia submitted its annual report (Form 20-F) to the SEC today, and -- as required of all publicly traded companies -- the information provided a candid overview of its financial health and market risks. Based on its quarterly reports, we've already known it was a rather bleak year for the Finnish outfit, which saw a €1.4b annual loss compared to €1.3b in profit just one year ago. Further, its net sales similarly took it on the chin, which amounted to €38.6b in 2011 versus €42.4b in the previous year. In terms of units sold, Nokia pushed out 339.8m feature phones during the year -- a three percent decline from the 349.2m units sold during 2010. The company attributed the drop to its aggressively priced competitors, as well as its lack of a dual-SIM handset for the first half of the year. Nokia's smartphone segment took an even harder hit, which fell to 77.3m units sold -- a 25 percent drop from the 103.6m devices shipped just one year ago. Once again, the company cites its aggressive competition as the primary factor for the decline, along with a waning interest in the Symbian platform.In its discussion of potential threats to the company's bottom-line, Nokia provides a rather forthright assessment that accurately pegs its future success in the smartphone marketplace upon the acceptance of Windows Phone among developers and consumers. Likewise, its projections to sell 150 million Symbian units is failing to materialize -- big shocker there -- and Nokia now expects demand for its homegrown platform to continue deteriorating. Nonetheless, it remains stalwart in the commitment to support Symbian through 2016 -- though surprisingly, no comment on how this in itself could be a disaster to the company's bottom-line. Should Nokia's smartphone effort fail, that leaves it with the Series 40 feature phone segment, which it characterizes as a low-margin business that may see its demand erode as smartphones reach even lower price points. Nobody ever said that the mobile industry was a bed of roses, but if you'd like to view the world through Nokia's eyes, you're certain to find its commentary (pages 13 - 47 of the source document) an interesting read.
Sprint reveals it spent $15.5 billion to fuel its iPhone hunger
Sprint's SEC filings have revealed that the carrier has committed to purchasing $15.5 billion worth of iPhones as part of the long-promised $20 billion gamble. If each handset costs around $630 at trade, then we're talking about the network holding nearly 24 million units. Given that the company most recently ate a loss of $1.3 billion, most of which was caused by carrier subsidies for the 4S, there's a genuine fear that the company won't be able to make enough back on each customer to offset the initial outlay. Given the Baller-style purchasing decisions of Dan Hesse of late, we'll be watching how this unfolds with great interest and our fingers very firmly crossed.
