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Vizio bucks the trend with Q3 growth, positive expectations for Q4
In case it's not glaringly apparent to you: price matters. And it matters a lot. While most other HDTV manufacturers are sobbing at sales figures (or the lack thereof) right now, Vizio is grinning from ear-to-ear. The outfit's low-cost flat-panels have evidently struck a chord with bargain-minded consumers, as the privately-held company has confessed to having a profitable Q3. Of course, it won't be releasing actual numbers due to its private status, but according to business operations and marketing VP Jeff Schindler, the firm has "never had an unprofitable quarter." Furthermore, the company is expecting even more growth in Q4 as consumers look to get the most bang for their buck when buying new sets. Can't say we doubt its optimism.
Verizon adds 233,000 net new FiOS TV customers in Q3, up to 1.6 million total
Man, this is just downright eerie. If you'll recall, AT&T managed to add 232,000 net U-verse subscribers in Q3. Lo and behold, its biggest fiber rival (that'd be Verizon) added 233,000 net new FiOS TV customers in the same quarter. Coincidences aside, Verizon's pretty proud of its current position in the market, now claiming 1.6 million FiOS TV subscribers and offering the service for sale to 8.2 million premises in the United States. Just for comparisons sake, the outfit only had 700,000 subs at the end of Q3 2007, and it added just 176,000 newcomers in Q2 2008. In related news, it also managed to acquire 225,000 net new FiOS internet customers, and with cable companies jacking up rates left and right, we wouldn't be shocked at all to see even more frustrated pay-TV users make the leap to fiber in Q4.
Softbank's operating profit hits record high, iPhone thanked
Nah, Softbank Mobile's launch of the iPhone isn't entirely to thank for the carrier notching record operating profits this quarter, but it certainly didn't hurt matters. Noting that Apple's darling "pulled in more mobile subscribers," the company reported an operating profit of ¥180 billion ($1.85 billion), though net profit did slide 11.5% to ¥41.1 billion ($422.2 million). In fact, Softbank president Masayoshi Son proclaimed that he used an iPhone every day, telling the press that it was "useful, and the more that [he] uses it, the better [he] understands its strong points." Of note, the operator's retention of mobile phone customers "has also improved with the iPhone," and while income from voice calls continues to drop, earnings from data services were on the up and up. Data, kids -- that's the future![Via mocoNews]
Both AT&T and Verizon see very positive Q3s
While many industries are going through a bit of a rough patch (to put things mildly), both AT&T and Verizon are soaking up the sun. Or maybe that's just the beaming glow being emitted from their respective Q3 reports. Either way, AT&T reported a 2.0 million net gain in total wireless subscribers on the coattails of 2.4 million iPhone 3G activations, while it notched a 50.5% uptick in wireless data revenues and saw overall wireless revenues increase by 15.4%. As for Verizon Wireless, it witnessed 1.5 million net customer additions (excluding the 630,000 customers pulled in from its Rural Cellular acquisition), and it noted that data revenues -- which now comprise over a fourth of all service revenue -- shot up 42.5% to $2.8 billion. For numbers galore explaining just how well the pair did this past quarter, mount up your reading glasses and hit the links below.[Via mocoNews]Read - Verizon Q3 2008 earnings reportRead - AT&T Q3 2008 earnings report
AT&T sees 232,000 net U-verse additions in Q3
In Q2 of this year, AT&T finally surpassed the half million subscriber mark with its fiber-based U-verse TV service. Now that Q3 has come and gone, it's proudly announcing that it saw a net gain of 232,000 customers over the past three months. As it stands, the provider has 781,000 paying U-verse TV users, and AT&T has personally confirmed to us that it intends on meeting or exceeding the goal of one million by the year's end. In other words, expect some serious sales pitches if you're residing in a U-verse TV area (and aren't already a sub).
Is Netflix a better indicator of Blu-ray's success than Nielsen?
During a recent earning call, Netflix CEO Reed Hastings said that about 500,000 subscribers would be paying the new $1 Blu-ray fee. This is about six percent of Netflix's customers -- up from one percent 18 months ago -- and a number we're actually surprised with. The reason why we find it surprisingly low is because according to the Nielsen VideoScan numbers, Blu-ray sales have managed to steal away closer to 10 or 12 percent from DVD and we just figured there were more renters than buyers. The apparently incorrect reasoning was simple, it is a new format and renting is a the safer bet. Because as in any packaged media ecosystem, you spend way more money on the discs than on the player and we assumed consumers we're hedging their bets by renting. So while the so called Netflix effect isn't there, these numbers do show us some insight to the Blu-ray customer base, and we'll be looking forward to the next Netflix earnings call for indications of Blu-ray growth. [Via Format War Central]
Netflix sees 30% rise in profit, expects 500,000 Blu-ray subscribers
The current marketplace as a whole may be shaky, but while others are hanging their heads as they mumble about Q3 downfalls, Netflix is grinning from ear-to-ear. Citing lower subscriber costs, the rental outfit proudly announced a 30% increase in profits today while slightly reducing its Q4 revenue estimate. During Q3 2008, the company earned $20.4 million compared with $15.6 million a year ago while revenue rose from $294 million to $341.4 million. In related news, it also said that it "expects about 500,000 of its 8.7 million subscribers [to] be Blu-ray subscribers in the current quarter," meaning that around 5.7% of its customers would be voluntarily paying the $1 monthly premium to keep BD flicks coming. Good on you, Netflix.[Image courtesy of Flickr]Read - Netflix quarterly earningsRead - Netflix Blu-ray subscribers
NTT DoCoMo posts 41% profit increase on reduced handset subsidies
Go 'head with your bad self, NTT DoCoMo. Party on down 'til six in the morning, because you just posted a quarterly profit increase of 41%. What's to thank for such a remarkable boost? According to a Bloomberg report, the outfit's decision to "reduce handset subsidies to customers" enabled it to bring in more cash despite the fact that sales fell 1.1% in the same quarter. President Ryuji Yamada proclaimed that the "acceptance of the monthly handset payment plan by our users helped bolster profits in the quarter," and he also highlighted a "considerable decline in the cancellation ratio." Still, some analysts are uncertain if the telecom company can maintain the growth, with Deutsche Bank AG's Kenji Nishimura stating that the "increase in profit was merely caused by the change in the accounting." Snap DoCoMo, are you just going to take that?[Via mocoNews, image courtesy of Flickr]
Apple announces third-quarter earnings call
Once again, it's that time of year when tourists flock to the beaches, students leave their books behind and Apple executives describe how they've made much more money than the rest of us.Earlier this week, Apple announced that their third-quarter earnings call will take place on July 21, 2008, at 2 p.m. Pacific time. It's been an up-and-down quarter for Apple's stock. It should also be noted that this will be the first report to contain information on sales of the iPhone 3G, assuming they do go on sale on July 11th without a glitch.We'll be live blogging the call, so be sure and check back on the 21st. See you then!
