Q32010
Latest
Gartner's global phone sales rankings match IDC's, but say the big guys have less of the pie; Android moves to number two overall
At a 30,000-foot level, the global mobile phone sales numbers for the third quarter of 2010 just released by Gartner match up with what IDC posted a few days ago, but you might say the devil's in the details. These guys have all of the top five players -- Nokia, Samsung, LG, Apple, and RIM -- at noticeably lower total market shares than IDC did, suggesting that second-tier players like Sony Ericsson, Motorola, and HTC (if you can really call them "second-tier") are grabbing more hearts and minds. And hey, considering Motorola's prominent role at Verizon and HTC's ever-growing global presence, we could totally believe it. Notably, Nokia is well below 30 percent in Gartner's report at 28.2, a whopping drop of 8.5 percent year-over-year -- way more than the 4.1 percent drop that IDC's got pegged. Of course, there's no way of knowing which of the two reports is more accurate -- and you know how margins of error work with these things. Hey, at least the rankings are the same, right? [Thanks, Tad] Update: As commenters have pointed out, the Gartner report also puts Android at 25.5 percent market share, moving past BlackBerry OS to become the number two smartphone platform behind Symbian (they've got iOS at third, BlackBerry fourth). Considering the platform's trajectory this year and sheer variety of Android phones now being solid worldwide, it's no surprise.
Garmin officially exits the smartphone business, reports mixed Q3 earnings
Based on our experience with relationships, we've learned that it takes two to tango. It also takes two to produce co-branded wares, and with ASUS already withdrawing (respectfully, of course) from the ill-fated Garmin-Asus smartphone partnership, this here is more a formality than anything else. That said, those worried that Garmin would try to loop in another handset maker in order to manufacturer yet another Garminfone that 3.4 people would consider buying can rest easy. In the company's Q3 2010 earnings, it confirmed that it is "winding down" its smartphone efforts, and rather than continuing on a path to doom and destruction, it'll be ramping up marketing efforts in the aviation and maritime sectors. As for quarterly results, the company did see net income rise to $279.5 million (up from $215.1 million a year ago), but shares fell as it issued a depressing outlook for Q4 amid weakening demand for standalone PNDs. Hate to say we told you so...
Samsung notches record profits, aims to sell ten million Galaxy S phones this year
My, how a year changes things. Q3 2009 was a nightmare for mega-corps in terms of earnings, but things have definitely been on the up and up just 12 months later. After Sony pushed out a glowing quarterly report this morning, rival Samsung has done likewise. The company saw record breaking revenues of ₩40.23 trillion ($35.8 billion) as well as profits (₩4.46 trillion; $3.96 billion) in this most recent quarter, with Sammy crediting strong semiconductor performance for the bulk of its newfound fortune. A tip of the hat was also given to its mobile communications business, with the outfit moving a staggering 71.4 million phones during Q3 2010 (a 19 percent boost year-over-year). Reports are noting that between five and seven million of those were of the Galaxy S variety, and it's hoping to sell ten million of 'em before the close of this year. All that said, the firm isn't expecting an equally rosy Q4, noting that a strengthening won and heightened price pressures around LCD panels and DRAM could put a damper on skyrocketing profits. So much for taking a day to celebrate, eh? [Thanks, Rajendra]
Nintendo posts half-year net loss, a first in seven years
After three years of record earnings, the mighty house that Mario built is reporting a net loss of ¥2.01 billion ($25 million) in the fiscal first half ending 30 September versus a profit of ¥69.49 billion a year earlier. In addition to the adverse affects suffered under a strong yen, Nintendo's sales for the first half of its fiscal year were down 35 percent to ¥363.16 billion due to lower demand for its Wii console. According to the Wall Street Journal, this represents Nintendo's first net loss in the fiscal first half in the last seven years. The future outlook is pretty grim too with Nintendo forecasting an annual profit drop to the lowest level in six years as Wii console sales decline for the second year in a row. Ouch.
Sprint fails to impress Wall Street with Q3 2010 earnings, still notches 644k net adds
Sprint certainly isn't out of the woods yet, but at least it's picking up customers from somewhere. The company's Q3 2010 earnings were ushered out today, and while its stock fell around ten percent on the news, a few silver linings were present. The carrier saw postpaid subscriber losses of 107,000, but that's an 87 percent improvement compared to Q3 2009. The CDMA network added approximately 276,000 postpaid customers during the quarter, 471,000 (net) prepaid subscribers and 644,000 total wireless subscribers from a net perspective. It also landed its second best postpaid churn result ever, but the bottom line still looks battered -- the operator announced a net loss of nearly a billion dollars ($911 million, if you're scouting specifics). Of course, phasing out iDEN should probably help things in the long run, but even its 4G advantage could quickly fade if (or more likely, when) Verizon gets its LTE act together next year.
Verizon adds fewer customers than AT&T in Q3, race for first place gets tight
By subscriber count, Verizon had vaulted into first place by a pretty comfortable margin following its Alltel acquisition, but AT&T added significantly more customers this last quarter than Big Red did -- and just like that, the battle for first place among the US national carriers is starting to get hot again. Verizon added 997,000 customers (excluding acquisitions) in the July through September period versus AT&T's beefy 2.6 million, meaning AT&T now stands at some 92.8 million -- just 400,000 or so fewer that Verizon's headcount. Nothing like an exclusive iPhone launch to give you a little boost, right? On the plus side, Verizon's postpaid churn in the quarter was low at 1.07 percent, and Verizon Communications as a whole earned 31 cents per share -- lower than its second quarter pre-adjustment EPS of 58 cents, but a heck of a lot higher than the 7 cent loss it actually posted in Q2. Outside of wireless, the company added 226,000 and 204,000 FiOS internet and television customers, respectively, bringing the totals to 3.9 and 3.3 million; FiOS ARPU is up nearly 11 percent year over year, and the company claims that its FiOS business now represents about half of its consumer revenues -- pretty impressive. Follow the break for Verizon's full press release.
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.
Nokia reports improved earnings for Q3 2010, will still 'streamline' up to 1,800 employees out of a job
Nokia's quarterly results have just been made public and the company's devices plus services sector has actually improved its income relative to last year: €7.2b of revenue was collected over the past three months versus €6.9b in the same period a year ago. Operating profit has also pepped up, going from the previous €785m to €807m. You'd think this would augur well for Stephen Elop's beginning at the helm, but the new man in charge is also presiding over a fundamental restructuring of operations at Nokia, which is expected to result in the redundancy of up to 1,800 employees globally. There are no specifics to tell us who'll be losing out, but the aims are the boilerplate tasks of increasing efficiency, simplifying operations, and reducing time to market. Anyway, we doubt the great people of Finland will be pleased.
AMD sees a tablet chip in its future, and an end to the core-count wars
AMD told us that it wasn't terribly interested in the iPad market, and would wait and see if touchscreen slates took off, but CEO Dirk Meyer changed the company's tone on tablets slightly after reporting a $118 million net loss (on $1.62 billion in revenue) in a Q3 2010 earnings call this afternoon. First revealing his belief that tablets will indeed cannibalize the notebook and netbook markets, he later told investors that he actually expects AMD's netbook parts to start appearing in OEM slates in the next couple of years, and that AMD itself would "show up with a differentiated offering with great graphics and video technology" when the market becomes large enough to justify an R&D investment. Elsewhere, AMD CTO of servers Donald Newell prognosticated that the number of individual CPUs on a chip won't go up forever: "There will come an end to the core-count wars," he told IDG News. Just as the megahertz race was eventually defeated by thermal restrictions, so too will the number of cores on a chip cease to increase. " I won't put an exact date on it, but I don't myself expect to see 128 cores on a full-sized server die by the end of this decade," he said. So much for our Crysis-squashing terascale superchip dreams, we suppose.
It's the iPod touch's time to shine
The iPod touch is like that really hot cheerleader you already wanted to talk with, but were a little too afraid to approach. It shines on its own by simply existing. It's the iPhone without the phone, a competent gaming platform, has the capacity its iPhone sibling dreams of, and it's extremely popular. But, now the iPod touch has come into its own. During September's media event, Steve Jobs revealed that the touch is Apple's top-selling iPod. But, as Fortune magazine points out, the company has never shared the number of iPod touch units sold with investors. Will this change with Monday's quarterly earnings? It's hard to say, but Fortune polled a number of analysts who gave it their best guesstimate of the number of iPods units (classic, shuffle and nano included) sold. The numbers range from a little over 8 million to slightly above 11 million for the third quarter of 2010. Other bloggers estimate that roughly 38 percent of iPods sold are iPod touches. The iPod touch hasn't ever had the glitz or glamor of its older iPhone and iPad brothers, but it's a solid player in Apple's lineup for sure.
Intel reports record $11.1 billion revenue, brings home $3 billion in bacon
Looks like Intel's having its best quarter ever all over again: this time, the company's reporting $3.0 billion in profit on a record $11.1 billion in revenue. Chipzilla attributes the surplus to three percent increases in laptop and server chips sales respectively, but none to Atom-based netbooks -- sales of Atom chips actually decreased by four percent. That may be more than you needed or wanted to know about the booming processor business, but humanitarians will be pleased to know it's not all about the silicon; Intel also hired 1,300 new flesh-and-blood employees last quarter to keep the machines running.
HTC grows profits in Q3 to $360 million, revenues rise to $2.45b
It's good to see that HTC's omnipresence in the smartphone market is paying off in nicely growing financial figures as well. Having reported $268 million in profit for Q2, the Taiwanese company is today touting a $360 million tally for the period between July and September 2010. Android is again fingered as the chief catalyst for this growth, which is best illustrated by comparing numbers to last year, when HTC managed to pull in $184 million during Q3, or almost exactly half of this year's haul. Total revenues were also appropriately inflated, up to $2.45 billion, and analysts seem in agreement that HTC's future is looking rosy. So long as the G2 hiccups remain an isolated incident, that should indeed be the case.
HP reports Q3 2010 earnings, posts $2.3 billion operating profit
And to think -- that $2.3 billion figure might have been a few million higher if not for the absurd Golden Parachute that Mark Hurd will continue to float on for centuries to come. All jesting aside, HP published its Q3 2010 financials today, reporting a healthy $2.3b in operating profit (not to be confused with net income, which deducts those massive corporate taxes) and a five percent increase year-over-year. All told, third quarter revenue was listed at $30.7 billion (an 11.4 percent uptick from last year), with a "record" amount of services signings. Interestingly, a whopping 63 percent of total HP revenue came from outside of America, though we're struggling to find any specific mentions of Hurd or Palm in the release (embedded after the break). We'll be checking in on the press call shortly -- we'll let you know if anything crazy goes down.
Apple posts record $3.25b profit in first full quarter of iPad sales, says more 'amazing products' coming this year
Apple just posted up its third quarter earnings -- its first full quarter selling the iPad -- and, well, it's raining cash in Cupertino. The company posted a record profit of $3.25b on record revenues of $15.7b, which is up from $1.83b and $9.73b from a year ago. The big stat? Apple sold 3.27 million iPads, nearly matching the 3.47 million Macs sold -- and Mac sales were up 33 percent from a year ago to set a new quarterly record. Yeah, damn. iPhone sales -- including the first few weeks of the iPhone 4 -- were up 61 percent from a year ago to 8.4 million, and the iPod continued its slow decline, down eight percent to 9.41 million units sold. Over half of the Apple's sales -- 52 percent -- were international, and Jobs is quoted saying "we have amazing new products still to come this year." Not a bad way to head into back-to-school and the holidays, we suppose -- we've got a feeling those iPad numbers are just going to go up. The conference call to discuss all this is at 5pm ET, we'll be covering it live right here. Update: The call is all done -- the full liveblog is after the break. We didn't learn too much apart from the fact that Apple's selling every iPhone and iPad it can make (Tim Cook repeated this over and over), and that Apple's setting aside $175 million in revenue to cover the free iPhone 4 cases. Of course, given that Apple added an additional $4.1 billion in cash to its warchest this quarter for a total of $45.8 billion, that's pretty much pocket change, but there's the number.
Reminder: Apple Q3 Financial Results at 2PT/5ET
Apple is set to announce their Q3 2010 financial results today. As usual, Apple will stream a webcast of the event at 2:00pm PT/5:00pm ET on Tuesday, July 20, 2010. The main device that is expected to move Q3 results is the iPhone 4, but this will also be the first full quarter of iPad sales. As always estimates vary, but the average consensus is that Apple sold 8.17 million iPhone units this quarter and 3.3 million iPad units. 9.3 million iPods are expected to have been sold and 3.2 million Macs. Apple is expected to report earnings of $3.11 per share on sales of $14.75 billion for Q3 2010. That's what's expected, but Apple has typically had a history of blowing past analyst expectations. Will this be another "best non-holiday quarter" in Apple's history? We'll find out at 2:00pm PT. Until then, tell us what you're predicting in the poll. %Poll-49795%
Palm sales 'lower than expected,' revenues to miss targets
Ruh-roh. Palm just confirmed what we heard from analysts yesterday: sales aren't going so well. The company's updated its third quarter financial guidance to say that consumer adoption of its products is "taking longer than expected," leading to lowered order volumes from carriers and deferral of some orders to "future periods." That certainly puts that "Chinese New Year" Pre / Pixi work stoppage in a slightly different context, doesn't it? Looking at the new numbers, Palm says it expects non-GAAP Q3 revenue to be about $300m, or about the same it pulled in Q2 before the Pre Plus and Pixi Plus launched on Verizon. That's not a good sign, but we'll see if that kicks someone at Verizon or Palm into realizing they might need a new, less-stupid ad campaign focused on capabilities, not stereotypes.
Samsung expecting OLED laptops in Q3 2010
It'd be about a year late according to an earlier roadmap, but Samsung at IFA this week proclaimed its intention to adopt OLED for its laptop lineup as soon as the screens are commercially available -- "probably sometime Q3 next year" said Kyu Uhm, head of Worldwide Sales and Marketing for the company's Computing Division. Unfortunately, the company was mum on any other details. We doubt it'll look much like its 2008 prototype, but we can dream, can't we? [Via OLED-Info]
