Q42010
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.
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.
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.
Adobe clocks first billion-dollar quarter ever, $268m profit
It's been a year of Flash-related drama for Adobe, but otherwise it seems like things are humming along nicely: the company just posted its first-ever quarter with a billion dollars in revenue, which is good for a $268.9 million profit. Unfortunately there's no granular data on how Flash is faring in the market -- it's lumped into the Creative Solutions group with the rest of the Creative Suite products, but with big wins on Android in the past year and a huge win on the Air-based BlackBerry Playbook coming next year, we'd say things are going well, no matter what Steve Jobs' Thoughts are. [Image credit: Ben Templesmith's Flickr]
Clearwire reports Q4 earnings: staff, marketing, stores, and handset plans all scaled back
Though it reported record growth in both revenue and subscriber count, Clearwire's bad news outweighed the good as it announced its fourth quarter earnings today. Here's the meat of it: "The Company is actively pursuing a number of options to resolve its need for additional capital. The Company is in discussions with a number of its major shareholders and other third parties about a number of options, including potential strategic transactions, additional debt or equity financings and/or asset sales. While the Company is cautiously optimistic it will resolve its short-term funding needs in the near future, there can be no assurances. Thus, it is implementing a series of significant cash conservation measures to reduce costs, including: a substantial reduction in sales and marketing spending, a suspension of additional retail channel market launches of the CLEAR-branded operations in select markets including Denver and Miami, delays in the introduction of CLEAR-branded smartphones, a substantial reduction in the contractor workforce, a 15% reduction in the number of employees, and the discontinuation of development activities for sites not required for its current build plan. The Company currently has thousands of sites in various stages of planning and construction beyond its current build plan, and it intends to suspend zoning and permitting in a portion of those sites until such time as additional funding becomes available." Translation: they're running low on cash, they're looking for ways to raise more of it, and until they do, they aren't launching those promised Clear-branded phones or opening any more retail locations. They're also cutting staff by 15 percent, scaling back Clear marketing, and suspending network planning beyond stuff that's already in the works -- a pretty drastic step considering how much build-out Clearwire's network still needs. Though Sprint depends heavily on Clearwire for its current WiMAX setup, it's unclear whether Sprint would be willing to continue to dump cash into the partnership -- particularly considering the recent rumors that they're looking to reach out to other carriers -- and Comcast has already gone on record saying they don't see themselves turning into a Clearwire ATM. Obviously, both Clearwire's spectrum holdings and its infrastructure are extraordinarily valuable and we wouldn't sound any alarms that Sprint's WiMAX network is in any danger of disappearing, but we're sure this is sounding some alarms at Sprint headquarters that it's time to make some strategic moves. Should be interesting to see how this all plays out.
Motorola's mobile unit posts first operating profit in a long, long time
As a whole, Motorola is no stranger to profit... thing is, Moto won't be "whole" for much longer, and when the split happens, we're sure it'd like all of its divisions to be profitable. The mobile unit, of course, has been the struggling one, trying to pull out of a multi-year post-RAZR nosedive under the leadership of CEO Sanjay Jha -- and it looks like his all-in bet on Android is starting to pay off at the bank on today's news that they've posted a non-GAAP operating profit of $3 million. Yes, sure, that's razor-thin when you consider that they sold some $2 billion worth of phones -- but these guys haven't seen black ink in three years, so it's definitely cause for celebration. Looking at the bigger picture, the entirety of Motorola posted non-GAAP earnings per share of 16 cents -- handily beating the estimate of 10 to 12 cents -- on sales of $5.8 billion. Not out of the woods yet, but certainly rolling toward the end of the year on a high note, we'd say.
Steve Jobs drops knowledge on earnings call: calls out Google and RIM, says 7-inch tablets are 'DOA' (Update: complete Jobs audio!)
Steve Jobs hit today's earnings call with the power of words. In a tone that could be described as "righteous anger" or perhaps just "reppin," Steve launched into a five minute rant that hit hard against RIM's entire business model, Android sales numbers and software fragmentation, and the impending wave of Android tablets. With the iPhone surpassing RIM, Steve says that he "[doesn't] see them catching up in the foreseeable future." As for Android sales, Steve takes issues with the market share figures that are currently floating around, saying that 275k iOS devices were activated on average per day last month, compared to Android's most recent estimate of 250k per day -- though he does admit that Android outshipped iPhone in the June quarter, during the "transition" to iPhone 4. That wasn't Steve's only problem with Android, he takes major issue with the fragmentation and the onus he believes it puts on the user: "we believe integrated will trump fragmented every time." Oh, and 7-inch tablets? You're in for a bag of hurt. Steve pretty much outright killed any potential for 7-inch iPad rumors, saying that the software just isn't right for that size ("This size is useless unless you include sandpaper so users can sand their fingers down to a quarter of their size."), and that users have no need for a pocket sized tablet when they already have a smartphone. He called the iPad's upcoming competition in the space "DOA." After he calmed down a bit, the call entered a Q&A period, where Steve was happy to point out that the iPad has already surpassed Macintosh in sales, and that it's going to affect laptop computers: "it's not if, it's when." We'll get a copy of the audio and put it up as soon as possible... like most CEO outbursts, this is not one to be missed. Hit up our liveblog of the call for a bit more context, and you can try the source link for Apple's stream of the entire earnings shindig. Update: We just ripped the first part of the call, which featured Steve's prepared remarks -- we'll have an edited version of the Q&A session in just a bit. Update 2: And here's an edited version of the Q&A with just Jobs's answers -- hit the source link for Apple's archive of the whole thing with Peter and Tim's answers as well. Update 3: And just for the completists out there, here's an MP3 of both segments combined.
Apple releases Q4 results: $20.34B revenue, $4.31B profits
Top line: hell of a beat. Apple today reports earnings of $4.31 billion, or $4.64 a share, in the fiscal fourth quarter, versus $1.82 a share in the year-ago quarter. Street guess was $4.08 a share on sales of $18.90 billion, according to Thomson Reuters, so like I said: hell of a beat. 3.89 million Macs were sold during the quarter (not 4M, but close, very close). 14.1m iPhones (almost 2x the previous year's number) and 4.19m iPads also sold in Q4. Looking ahead, Peter Oppenheimer forecasts $23B in revenue and $4.80 per share earnings in the holiday quarter. Given the degree to which this quarter beat the predictions... whoa. Join us at 5pm ET for the liveblog of the analysts' results call. Disclaimer: I am a happy holder of a small amount of AAPL.
Microsoft reports $4.5b in profit, a record $16.04b in revenue
This time last year, almost to the day, Microsoft saw its first annual sales decline in history. Things are looking much better now, with the company reporting a record $16.04 billion in revenue, a 22 percent year-over-year increase for its Q4 revenue ending June 30th. In fact, revenue is up across all divisions, with Windows and Windows Live seeing the biggest uptick (43.5 percent to $4.55 billion) followed by Entertainment and Devices (27.3 percent to $1.6 billion). Operating income, on the other hand, paints a different picture of E&D, showing a $172 million loss for this quarter (compared to $141 loss in Q4 last year), but looking over the entire fiscal year, the home of Xbox and Zune this year did $679 million in operating income -- a sizable jump to the $108 million from 2009. The overall operating income for the company is $5.93 billion this quarter (net income $4.52 billion), a 49 percent increase over last Q4, and $20.36 billion for the year (18 percent compared with fiscal 2009). We know you're interested in comparisons, so we'll just go ahead and break it down for ya: the gang in Redmond is still beating Apple in both revenue ($16.04 billion vs. $15.7 billion) and profit ($4.52 billion vs. $3.25), but that margin feels smaller than it used to. Enough to keep the rumored pressure off Ballmer? Frankly, we don't even think biplanes could knock the man off the top of a tower, but Windows Phone 7 has a lot to prove, and fast. Microsoft is hosting a webcast of its report later today -- usually much ado about nothing, as far as we're concerned, but we'll listen in and let ya know if anything interesting pops up. Update: Some interesting Xbox 360 statistics. 1.5 million consoles were sold this last quarter. Xbox Live has 25 million members, and for the first time since its inception, the revenue from the Marketplace exceeded subscription revenue.
