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Sony Ericsson's Q1 profit falls 48 percent on weak sales, low supplies
We knew Sony Ericsson's supplies were tight following the recent natural disasters in Japan, but in retrospect it's clear the phone maker was already having a rough quarter. The company released its Q1 earnings today, and reported that its profit fell 48 percent to €11 million ($15.8 million) due to weak sales -- a shortfall compounded by higher taxes and quake-related supply constraints. To be fair, at this time last year, the company earned money after a sweet tax benefit, so its profit wasn't completely built on strong sales. All told, it sold 8.1 million phones in the most recent quarter -- down 23 percent from the same period a year ago, though the average selling price for handsets ticked up 5 percent. In particular, smartphones accounted for 60 percent of the company's sales, though by the company's own estimate, it's only snagged 5 percent of global market share. And, it seems, Sony Ericsson's management team isn't getting too ambitious -- it forecast just a "modest" uptick in overall phone sales in 2011.
AT&T reports best-ever first quarter for smartphone sales with 5.5 million, 60 percent of them are iPhones
We've been waiting for this one, the first indicator of the mythical Verizon iPhone's impact on the fortunes of the formerly exclusive Applephone carrier, AT&T. As it turns out, business is rolling along as usual over on the blue team, where AT&T spent Q1 2011 activating a total of 3.6 million iPhones, a nice round million more than the same period last year. Also interesting is AT&T's note that somewhere around 40 percent of its smartphone sales come from Android, BlackBerry and Windows Phone 7 devices, leaving the iPhone to account for the remaining 60-ish percent. Taken as a whole, that group totaled up 5.5 million sales in the quarter, a new best for AT&T in the first three months of the year, and the smartphone segment is now said to account for 46.2 percent of the company's postpaid user base. Jump past the break for more details in AT&T's press release.
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]
Microtransaction items for Japanese aid in gPotato's stores
The earthquake that hit Japan on March 11th may no longer be at the forefront of gamers' minds, but the country is still reeling from the impact. NCsoft and CCP Games have both announced efforts to help aid the Japanese people with charitable donations, and it looks like gPotato has decided to encourage players to donate as well. The company has added new merchandise into the microtransaction stores for several games that, items that will grant players a unique look as well as donating all profits to the Red Cross. Rappelz, Flyff, and Luna Plus are all offering capes for players, while Tales Runner offers a shirt and Iris Online offers a kitten hat. (Sadly, the cat in question is not Maru.) One hundred percent of profits will be donated to the Red Cross to aid in relief efforts, and the items cannot be purchased with "free" currency. The items will be available until March 31st, so if you play the games and haven't yet donated, now would be the time.
NCsoft's Lineage enjoys record year, Aion growth boosts total revenue
It's been an up and down year for NCsoft, literally. GamesIndustry.biz writes that the Korean MMO titan has reported increases in both its sales and operating profits but a drop in net income in the recently concluded fiscal 2010 period. Surprisingly, the company's total revenue was up two percent due to unprecedented sales of the 12-year-old Lineage MMORPG. Much to the chagrin of fail-trolls across the internet, NCsoft has also publicized the fact that Aion continues to be a financial success after "recording consecutive growth for the last three years." Taken together, NCsoft's big three (Lineage, Lineage 2, and Aion) have now accounted for $2.7 billion in lifetime sales. NCsoft's largest success came courtesy of the booming Korean market (which represented a $370 million cut of its $576 million total revenue). Next up was the Japanese market at $70 million, followed by North America at $43.4 million and Europe at $30.1 million.
Gold Capped: Selling enchanting scrolls in Cataclysm
Every week, WoW Insider brings you Gold Capped, in which Basil "Euripides" Berntsen aims to show you how to make money on the auction house, and Insider Trader, which is all about professions. Email Basil (new address is basil@wowinsider.com; old one no longer works) with your comments, questions or hate mail! Enchanting is a very straightforward business. You have a few steady sources of income; however, one of the reasons that its overall profitability is high is that Blizzard put it behind the level 84 phasing wall, making a huge chunk of the profession in Cataclysm only accessible to people who have access to the shard trader.
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.
Nintendo Q3 profits down 46 percent, slashes console sales projections
Call it an unfortunate coincidence but Nintendo just announced its quarterly numbers only minutes after Sony announced its new quad-core Cortex-A9 pumping PSP (codenamed NGP) and new PlayStation Suite for gaming on Android tablets and cellphones. So what's the damage? Well, to start with, Nintendo's Q3 (October to December) operating profits were down 46 percent (104.6 billion yen ($1.3 billion) compared with 192.3 billion last year) on account of weaker Wii and DS sales coupled with a continued strong yen. The house of Mario also slashed its annual sales expectations projecting 16 million Wii consoles (down from 17.5 million units) and 22.5 million DS handhelds (down from 23.5 million) sold through March. It wasn't all bad news though as Ninty maintained its annual operating profit forecast of 210 billion yen assisted by a projected 25% increase in Wii software shipments. Mind you, that's not chump change, but gone are the days of the Wii / DS one-two knockout punch on the competition. And with a full quarter to go before the 3DS is launched globally, we're not expecting any improvement to the bottom line until the next fiscal year.
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.
AMD ships 1.3 million Fusion APUs, 35 million DirectX 11 GPUs, says it has 'momentum'
Hey, this interim CEO thing doesn't seem to be too hard at all. Thomas Seifert, the temporary solution to the problem created by Dirk Meyer's departure from AMD's top spot, has had a pretty comfy ride reporting the company's latest quarterly results. The pecuniary numbers themselves ($1.65b revenue, $375m net income) were tame and unexciting, but Seifert got to make a pair of juicy milestone announcements. Firstly, on the mobile and ever-so-efficient front, he noted that 1.3 million Fusion APUs (Accelerated Processing Units) have been shipped to partners since AMD started deliveries in November, and secondly, in terms of discrete graphics chips, he disclosed that the Radeon HD 5000 and HD 6000 series DirectX 11 GPUs have surpassed the 35 million units shipped mark. To give you some perspective on what that means, sales of Nintendo's bestselling Wii console are hovering somewhere around the same figure. So yes, AMD, your wagon has momentum, but shouldn't it have a driver too?
HTC profits leaping and bounding up, Peter Chou promises tablet and production expansion
HTC's fourth quarter of 2010 has gone exactly the same way as the first three: the company reports a 160 percent rise in profits (to $500 million) year-on-year and a 31 percent increase relative to Q3 2010. Total revenue for the final three months of last year rounded the $3.5 billion mark, having been a trifling $1.4 billion the year before. Company CEO Peter Chou sees no end to this dramatic growth, forecasting it'll remain in double digits through 2011, and he plans to match up to it by doubling monthly production capacity at HTC's Shanghai plant to two million handsets. If necessary, he says he'll even outsource manufacturing. Even more intriguing, however, is Chou's admission that HTC is strategizing an entry into the tablet realm: "It's a new market with many competitors, and we don't want to rush into it." Hardly a surprise, but good to have it from the horse's mouth.
Sony Ericsson ships 9 million Xperia Android phones, but latest earnings disappoint
Sony Ericsson has just made its financial results for the fourth quarter of 2010 official and the highlight, at least for milestone lovers like us, is the figure of nine million Android-based Xperia handsets shipped since the family's launch. Now, the language used here is important, as Sony loves to report shipments to retailers instead of actual sales, but it's still a pretty grand number of Xperia X10, X10 Mini, X10 Mini Pro, and X8 handsets out and about in our big wide world. Hell, it's even more impressive when you consider that those phones have spent most of their lives riding the ancient Android 1.6 as their operating system. In terms of actual currency figures, however, SE has fallen short of expectations, reporting a moderate €35 million pre-tax profit for Q4, which the company is turning into a positive by noting that it marks its fourth consecutive quarter of being in the black. If the new crop of Xperia Androids are anything to go by, we can probably expect this habit to continue for a good long while.
Turbine: LotRO revenue tripled since going F2P
Lord of the Rings Online's future is so bright, it's wearing shades these days. At least, according to a new interview at TTH, where LotRO's Kate Paiz and Adam Mersky opened up about the success of the free-to-play conversion. Turbine has seen LotRO's profits triple since F2P along with a huge influx of new players, and that spells good news for the future of the game. The duo turned its attention to the upcoming year for LotRO, which includes the Rise of Isengard expansion. While Paiz and Mersky didn't indicate whether there would be any new zones between now and then, they did confirm that the epic story would be continued, leading up to the confrontation between the rangers and Saruman's growing forces. Rise of Isengard will feature a push to the south with the Dunland and Gap of Isengard zones, whereas Isengard proper will pit players against the foul forces of the Tower of Orthanc. Isengard isn't the only thing players have to look forward to in the next year -- a big cosmetic system revamp is planned along with non-combat pets. Hardcore players also have a new raid cluster to look forward to before Isengard's release. Other possibilities for the future? Cosmetic weapons, a Rohan expansion and the Battle of Helm's Deep are all on the table. [Thanks A Casual Stroll to Mordor!]
Viacom denies keeping payments from Harmonix
Viacom has responded to claims this morning from Harmonix shareholders that the company avoided paying out bonuses to the developers of the Rock Band series. Viacom of course denies it dodged any obligations, and says instead that the representative for Harmonix's shareholders, Walter Winshall, was offered agreements that included big payouts for the developer but "spurned" those, hoping for a bigger reward later. That reward never came, says Viacom, and Winchell is allegedly lashing out with this lawsuit for not meeting his shareholders' expectations. That doesn't quite cover the other allegation in the lawsuit against Viacom, which claims that it set up an agreement with EA on the Rock Band brand that benefited its own interests rather than those of Harmonix (by doing things like trading advertising sales on MTV rather than passing on profits to the developers). Proof on that allegation, one way or the other, will have to come out in court -- if this lawsuit goes that far.
Undead Labs publicly announces profit-sharing plan
It's been a few months since we heard the first details about the upcoming zombie game from the appropriately named Undead Labs, but the most recent news from the official site doesn't cover the game directly. Instead, it covers something that should be far more interesting to people who follow the industry as a whole or those who work with the company. It's the official profit-sharing plan for the company, and not just the net benefits -- the whole thing, in full legal terms, available for anyone to read. As Jeff Strain puts it, he doesn't want the company to work along the lines of many larger studios, where executives reap the benefits of a successful game and employees are lucky to see any of the profits. The complete transparency of both the plain language and detailed legal version of the sharing plan is apparently against the advice of the corporate lawyer, but Strain considers it a move that he'd prefer to see other studios copy. Considering the references to the Activision/Infinity Ward fiasco earlier this year, it certainly couldn't hurt to have a bit more developer and corporate accountability.
GameStop cards can buy Kreds on Kongregate, retail sales fueling digital profits
If you were a little puzzled about why retail chain GameStop invested in the Flash gaming site Kongregate earlier this year, here's (at least part of) your answer. The company has announced that GameStop gift cards will now be able to purchase Kongregate's "Kreds" virtual currency, which can then be used to buy unlocks and items in Kongregate games, or even "tip" developers who upload games to the site. Each dollar on a GameStop card equals 10 Kreds, and since those gift cards can be found not only in GameStop stores, but at grocery stores, bookstores and other places of commerce, that's a lot more Kreds Kongregate kan kapture. Whoops, sorry, we got a little karried away there. The company is also offering a promotion for the deal, with up to 30 percent bonus Kreds given for any GameStop card used on the site through December 8. You have to give it to GameStop -- it's coming up with some really interesting ideas in its efforts to stay floating above the onrushing tide of digital distribution.
Microsoft accounting shuffling resulted in higher revenues for Windows division
Microsoft's Windows division has been on something of a roll recently, but a deeper look into the company's financials seems to indicate that the reported numbers might look better than reality. Information Week has done some deep digging into Microsoft's recent SEC filings and found that several bookkeeping changes resulted in significantly increased reportings of revenues in the company's Windows division. Revenues that had been assigned in previous quarters to other divisions within the company -- mostly the Entertainment and Devices unit which includes highly successful businesses such as Xbox -- were, in this past quarter, re-assigned to the Windows operating system division. So just how much money was moved? Well, according to Information Week and the relevant SEC filings statements, about $259 million, or a boost of 6.5% in revenue to the division overall for a total of $4.24 billion rather than the $3.98 billion originally stated for Q1 2010. This also resulted in a 25% reduction in revenue for EDD, while the total -- $12.92 billion -- stayed exactly the same. Of course, all these bookkeeping maneuvers mean that Redmond's Windows division looked like it was making a decent amount more cash than it actually was, and when taking into account another complex move -- that of deferring $1.5 billion in upgrade revenues from Windows Vista machines sold in Q4 2009 to Windows 7 in Q1 2010 -- the resulting picture is a bit different than it would appear on the surface. Ultimately, it looks like Microsoft raked in an 11% increase in Windows revenue rather than the 66% reported, when removing both the bookkeeping changes from other units and the upgrade deferrals. Of course, this is all apparently technically on the up-and-up, in terms of financial reporting is concerned, but it does give some insight into the stunning profits recorded in the Windows division as of late.
Gold Capped: Bait and tackle
Every week, WoW Insider brings you Gold Capped, in which Basil "Euripides" Berntsen aims to show you how to make money on the auction house, and Insider Trader, which is all about professions. For Gold Capped's inside line on crafting for disenchanting, transmutation, cross-faction arbitrage and more, check in here every Thursday, and email Basil with your comments, questions or hate mail! I'm going to start trying to include a link to something I've enjoyed reading in the gold-making blogosphere every week. Our first installment is JMTC's blogging carnival about lessons learned while preparing for Cataclysm. There are 18 submissions, which should keep you busy for a while. We've talked about auction house PvP before, but today we're talking about a glyph PvP method I like to call bait and tackle. Here's the problem: In order to sell glyphs, you need to spend a fair amount of time crafting them, as well as milling. In addition, on most sizable realms, there are a few hard-nosed competitors who are willing to play for longer than reasonable players. There have been times when, day or night, if I posted a batch of glyphs, every single one would get undercut exactly every 10 minutes.
AT&T clocks up 2.6 million net new wireless subscribers, bigger profits in Q3
AT&T's balance sheet just keeps looking happier and happier every quarter. In spite of the company's somewhat questionable hardware choices -- such as picking the ugly option from both Samsung's and LG's Windows Phone 7 platters -- it now proudly boasts a total of 92.8 million active wireless service lines. This comes off the back of a 2.6 million net subscriber gain over the third quarter of 2010, a record for this period of the year. Churn, or the rate at which people left AT&T, was also at its best ever for the quarter, coming in at a lowly 1.32 percent, while postpaid integrated device (read: smartphone on a contract) activations reached above the eight million mark. Total net profit was $12.3 billion, thanks to the sale of Sterling Commerce and a one-off tax adjustment, but in cashflow terms the company made $4.0b in the quarter. That's a lot of dinero, no doubt aided by Q3 being the first full reporting period after the iPhone 4's launch, we just wish some of AT&T's other phones weren't quite so unappealing.
