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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.
Intel shocks everyone, including itself, with record Q1 earnings
This is starting to get a bit repetitive, but we're sure Intel will never tire of hearing it: the chip maker just had its best quarter ever. The company expected to pull in roughly $11.6 billion, topping last quarter (and its previous record) by $500 million. Looks like the company was being conservative enough to make Pat Robertson blush -- it raked in a grand total of $12.8 billion in Q1 of 2011. About $500 million of that discrepancy can be explained by the acquisition of McAfee and Infineon, the rest is thanks to huge increases in sales across all market segments. Now go ahead, Intel, you just pretend to be surprised like last quarter.
iOS and Android continue chipping away at mobile gaming market, consoles remain strong
Let's face it -- smartphones (namely, iOS and Android devices) are slowly chipping away at the portable gaming market. If you recall, Apple took a nice slice of the market-share pie -- and as you'll notice in the picture above, we're seeing the same trend this time around. According to data from Flurry and NPD Group, iOS and Android are earning a sizable chunk of the revenue in the portable gaming software sphere, with the Nintendo DS's dominant market share dropping from 70 percent in 2009 to just 57 percent in 2010 to accommodate the newcomers. We may be seeing the decrease in relative revenue because the PSP and DS are on the way out to make room for the NGP and 3DS -- however, this chart speaks only of the current-gen portables. But hey, it's easy for almost anyone to spend a single buck on a full-fledged game, right? Head past the break for some more videogame revenue stats, if you please.
Foxconn owner reports revenue up thanks to iPad 2, other devices
Hon Hai Precision, the parent company of Foxconn, recorded an impressive revenue increase in its latest earnings report thanks to the iPad 2, the original iPad and the Kinect. According to the Taiwan Economic News, the manufacturing company reported revenue of NT$152.878 billion (about US$5.2 billion) in February 2011, up 25.81 percent year over year. This increase in revenue may offset some concerns over the slowed growth of the company. The iPad 2 has been immensely successful since its debut last week. Long lines characterized the launch, and Apple sold an estimated half million devices in the first weekend of sales. The iPad 2 is difficult to find in retail stores here in the US, and its online ship date is pushed out 4-5 weeks. [Via Boy Genius Report]
Profit shocker! Android brings home more bacon than iOS for Pocket Legends developer
Back in 2009, we wrote a story on crack mobile developer Larva Labs lamenting its inability to make a living off top-rated games in the Android Market. Well, to put it lightly, it ain't 2009 anymore: the Android ecosystem has expanded exponentially in every conceivable direction, the Market has taken on tens of thousands of additional apps, and -- according to one research firm, anyway -- Android has now overtaken BlackBerry to become the most prolific smartphone platform in the US. To that end, Spacetime Studios -- the company behind mobile MMORPG Pocket Legends, which brings in revenue through in-app purchases -- was shocked to discover that it's making some 30 to 50 percent more from its Android users than its iOS ones. Furthermore, they're spending more time playing and downloading the app with far greater frequency, which might be a testament to the fact that really great apps still stand out in the Market better than they do in the more mature (and more populated) App Store. The in-app purchase disparity is a little more difficult to explain, though -- especially since iOS has a slick, integrated purchase mechanism that Google won't be rolling out in Android for a little while yet. At any rate, the online mobile economy -- regardless of platform -- clearly still has some growing, maturing, and stabilizing to do. [Thanks, Michael]
Sony celebrates PS3 success at GDC, 41 million sold worldwide
It's tough to get solid numbers out of Sony for hardware sales, usually they're cloaked behind a vague "shipped" figure, but at GDC this week the company gave us one rather impressive number: 41 million. That's the number of PS3 consoles the company says it has sold worldwide, and over 80 percent are sucking down data from ye olde internet. Confirming the moneymaking trend we heard about last month, in 2010 the PlayStation store saw a 60 percent boost in traffic and a 70 percent boost in revenue from a total of 70 million PSN accounts. Let's see... 70 million PSN user accounts, 41 million PS3 consoles, 80 percent of which are online -- that means almost everyone has one account for gaming and a second for griefing. Sounds about right.
Engadget Mobile Podcast 077: Mobile World Congress - 02.19.2011
Mobile World Congress felt like a whole darn lifetime. Or did it feel like it was gone in the blink of an eye? Somewhere between the two, probably. Anyway! We take time to reflect on it, figure out what our faves were, and wrap up some unfinished business with the help of Joanna Stern. It's like that song "No Sleep Til Brooklyn," but more like "No Sleep Til After Barcelona," dig?Hosts: Chris Ziegler, Myriam Joire (tnkgrl)Guests: Vlad Savov, Joanna SternProducer: Trent WolbeMusic: Daestro - Light Powered (Ghostly International)00:01:20 - Huawei IDEOS X3 hands-on (video)00:06:42 - Acer Liquid mt hands-on (video)00:15:34 - Motorola Atrix 4G pegged for February 21st pre-order delivery00:26:05 - NVIDIA announces quad-core Kal-El SOC, promises it in tablets by August (video)00:31:45 - Motorola: 28 percent of 2010 revenue came from Verizon00:39:05 - Motorola Droid X 2 leaks, more details emerge00:50:00 - Samsung Epic 4G officially signed up for Froyo starting February 21st01:00:27 - The Engadget Interview: Microsoft's Aaron Woodman talks Windows Phone 7 and Nokia01:09:53 - Adéu, Barcelona: Mobile World Congress 2011 is overHear the podcastSubscribe to the podcast[iTunes] Subscribe to the Podcast directly in iTunes[RSS MP3] Add the Engadget Mobile Podcast feed (in MP3) to your RSS aggregator and have the show delivered automatically[RSS AAC] Add the Engadget Mobile Podcast feed (in enhanced AAC) to your RSS aggregator[Zune] Subscribe to the Podcast directly in the Zune MarketplaceDownload the podcastLISTEN (MP3)LISTEN (AAC)Contact the podcastpodcast (at) engadgetmobile (dot) com.Follow us on Twitter@tnkgrl @engadgetmobile @zpower @vladsavov @joannastern
Motorola: 28 percent of 2010 revenue came from Verizon
Think the Atrix 4G might be a critical launch for Motorola right now? A fresh regulatory filing by Motorola today revealed that the company got a whopping 28 percent of its cash from Verizon last year -- up from 17 percent in 2009 -- a pretty powerful testament to the "Droid effect." The company goes on to say that "the loss of, or a significant reduction in revenue from, one or more of these customers could have a negative impact on [its] business," and it's pretty clear that the launch of the iPhone on Verizon will have at least some impact this year. Question is, can they make up for the loss with a harder push on other carriers like AT&T?
Are free digital content apps a free ride on Apple? How to move forward
Sony Reader. Amazon Kindle. Rhapsody. In the App Store, they all have (or would have, if Sony's app had been approved) one thing in common: they're represented by free apps that serve as profitable storefronts to their digital content. They all pay their $99/year entrance fee to the App Store, but once in, they're not sharing their extensive off-store revenue systems with Apple. Apple provides the infrastructure, the delivery mechanism and the customer support for millions of free applications. And now, at least for those free apps that lead to digital goods sales, Apple is asking for a slice of the pie beyond the utility and attention that free apps bring. In a move that has Rhapsody ready to pull its offerings from the App Store, Apple has demanded that providers who offer subscription content outside of App Store channels now offer the same subscriptions within the applications as well. Meanwhile, even non-subscription purchases may be coming under the App Store umbrella. That would involve a 30 percent cut for all in-app subscriptions and media buys for Apple (which makes Apple's accountants happy), as well as an insane amount of overhead to approve each and every in-app purchase item (imagine what it will take to code, submit and oversee not just Rhapsody's once-a-month charge but every e-book in Amazon's catalog).
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.
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.
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.
Where Apple's money comes from
According to a report of Asymco, the iPhone, iPad and iPod touch collectively generated sales of about US$17.3 billion which accounts for 65% of Apple's overall sales in its latest reported quarter. Of the three iOS devices, the iPhone and iPad combined for $15 billion in revenue while the iPod generated $2.3 billion. This is an impressive, but not surprising, set of figures for a trio of devices that are less than four years old. There is little doubt that the iPhone and iPad lead the pack in their respective categories. Looking back over the past year, both the iPad and iPhone 4 experienced shortages due to overwhelming demand for these two iOS products. Long lines dominated iPhone 4 launches around the world and Apple itself confirmed that it could have sold more iPhones if supply was more abundant. The iPad dominates the tablet market has won accolades from Walt Mossberg and even Oprah. While iOS dominated quarterly sales, the remainder of Apple's revenue comes from OS X-based products (20%), OS X software which includes both the operating system and the software Apple develops for it (3%), iTunes music sales (2%) and accessories and other products not related to software (10%). Based on the figures, 90% of Apple's sales is derived from hardware and software powered by OS X or iOS and only a mere 10% of revenue comes from the sales of other non-OS products. Even the naysayers cannot deny that Apple has built an empire on the success of its two core operating systems. [Via Fortune]
Apple is now the largest mobile phone manufacturer by revenue
Based on revenue, Apple is now the largest mobile phone provider in the world, surpassing even global leader Nokia. In the winter quarter of 2010, the iPhone and its accessories generated revenue of $10.47 billion for Apple. Nokia's Devices & Services group projects Q4 2010 sales of $11.7 billion, but this figure includes mobile computers, tablets and revenue from Ovi-branded services. Ovi offers email, music, navigation and an app store for Nokia handsets. When you add in just Apple's iTunes revenue of $1.4 billion, Apple jumps ahead of its biggest mobile phone rival. Apple's mobile phone business is growing at a pace that even exceeds that of the overall smartphone market. Recent IDC estimates suggest the global smartphone market grew 70% in December, while Apple boasts of a 86% year-over-year increase. While its popularity among consumers remains strong, the iPhone' s influence in the corporate world is also growing. Apple chief financial officer Peter Oppenheimer confirmed that "88 of the Fortune 100 companies and almost 60% of the Financial Times Europe 100 companies [are] now testing or deploying iPhones." This expansion in Europe is most damaging to Nokia, which has dominated the European market for the past several years running. Apple's growth is unprecedented already, and it shows no signs of slowing down any time soon.
Citibank: Apple could pull in $2 billion in App Store revenues in 2011
Right before the year switched over, Citibank released its "US Internet Stock 2011 Playbook," and in there was an interesting prediction about the App Store. Despite what seems like constantly falling prices and the rise of "freemium" apps, Citibank expects Apple to pull in $2 billion in gross app revenue in 2011 alone. That's comparable to gross revenue for the entire online video advertising market, according to TechCrunch. And presumably this is just the iOS App Store -- later this week we'll be seeing the first fruits of the Mac App Store arrive, and it's likely that market will pull in a nice chunk of change for Apple as well. Smartphone software in general is also set to grow -- Citibank says that by 2013, the app market should be worth around $27 billion (that includes, of course, Android and any other platforms that should emerge in the next few years). Demand is strong for smartphone hardware, but I don't think the exponential growth of apps will continue for years into the future. Then again, who can tell? This is a market that barely existed just a few years ago, so where it's headed from here is anyone's guess. [via Loop Insight]
iPad and Kinect: two fastest-selling gadgets of all time
Apple and Microsoft have been competing for decades in the desktop market, so it is only natural to compare their success in other markets. Though the Microsoft Kinect and the Apple iPad are vastly different devices, the pair are the two fastest selling gadgets this year. The Next Web put together an interesting iPad versus Kinect infographic that compares the number of units sold and the estimated revenue for each device. The infographic suggests the Kinect will outsell the iPad in terms of the total number of units sold, but Apple will generate almost 4X the revenue of the Kinect after the second quarter of sales. To be fair to the iPad, the Kinect launched in November and the number of units sold after beyond this first month are projected values. While these numbers may pan out, a future hardware or manufacturing problem with the Kinect may hurt sales and effect these estimates. The iPad figures, on the hand, are actual values confirmed by Apple. The infographic is available for your viewing pleasure after the break. Enjoy!
2.8 million downloads for Gun Bros, 7.3 million for Zombie Farm
I am anxiously awaiting some stats on this past week's releases in the App Store -- over the past two weeks, we've seen some gigantic games released for iOS, and yet familiar names like Cut the Rope, Angry Birds, and Fruit Ninja are still topping the charts (along with some big EA titles benefiting from that price drop). But even if it takes a while for all of those releases to find their place on the App Store, here's news of a few more recent titles that have done well. First up, freemium shooter Gun Bros (featured as our Daily App choice a while back) has picked up 2.8 million downloads so far, and claims 175,000 daily active users so far. That's not huge, but it's a nice sizable audience for a freemium title, especially one that tends a little more towards the hardcore gamer. Glu is also supporting the app with updates, including a new planet to play on, special Christmas-themed gear, and some extra in-game currency rewards for users who update the app. Zombie Farm is doing even better than that -- the wacky cross between zombies and Farmville has earned 7.3 million downloads since launch, and is still growing at about 25% a month. Currently, the app's reviews section is full of complaints about some bugs, but nevertheless, Playforge has claimed 2.76 billion minutes of playtime, and while it hasn't shared actual revenue numbers, there's no question that players have probably spent plenty of money on the game's in-app purchases. I would call both of those solid hits for sure. We'll have to see what other big games rise to the top after this raucous holiday season on the App Store continues.
Report: US video games market estimated at $7 billion
A recent report issued by Dublin-based firm Research and Markets states the value of the games industry in the US is estimated to be $7 billion and, naturally, dominated mainly by The Big Three™: Sony, Microsoft and Nintendo. Suddenly that $65 billion global target doesn't seem so unattainable. Additionally, the report also talks about how video games are vying for consumer entertainment dollars as the preferred leisure activity, competing with TV and other forms of entertainment. The report itself will run you €97 ($129) and if you're interested, you can grab it right here. [Image credit]
OpenFeint announces in-app content service, infrastructure to support freemium games
Social gaming network OpenFeint has finally unveiled its OpenFeint X service, which will allow developers on the App Store (and a few other mobile platforms) to add cloud-based microtransaction content to their games on top of Apple's own in-app purchase service. This is apparently a system that lives outside of Apple's own store, and allows developers to quickly and easily add in-app content without having to go through Apple's approval system. If that sounds confusing, it's because the system is still so new -- only a few developers have worked with it so far (though we're supposed to see it running in popular titles like Fruit Ninja soon), and the updates for providing virtual currency and goods aren't out yet. But this is the next step for OpenFeint -- after Apple released Game Center, OpenFeint's plan was to provide even more services on top of the Game Center functionality, and with the rise of freemium apps on the store lately, delivering this content is an important thing for developers to do. To kick off the new service, OpenFeint is holding what its calling a "million dollar challenge" -- the first 100 developers to sign up and use OpenFeint X will be able to earn up to $10,000 without sharing any revenue (which basically means OpenFeint is giving away $1 million of the money it would have made). After that, developers who use the service will enter a revenue sharing plan -- if you're a developer, you can find more details about that on the official website. This won't change things for most end users -- it likely won't matter to you whether you click one of Apple's buttons to make an in-app purchase or use code from another company. But it will be an interesting choice for developers to make. And given what we've heard about the growing revenues from in-app purchases, a service like this is showing up at exactly the right time.
Pirates of the Burning Sea completes transition to free-to-play
Flying Lab Software's piratical MMO Pirates of the Burning Sea has officially made the transition to free-to-play -- you can now download, install and play the client with nothing more than a free Station account. Revenue is generated via an in-game store that sells extra inventory slots, ship insurance and premium missions to play, or players can fish up $14.99 a month out of Davy Jones' locker to join the Captains' Club and get all of the goodies that come with it. Former members of the game are now known as "premium members," with access to some of the premium content. The free-to-play transition was originally delayed, as Flying Lab did a fair amount of work upgrading the servers and the game's content. But the wide open seas are apparently up and ready for you to set sail, at no cost at all. Competing MMO developer Turbine was able to double the revenues of not one but two MMOs by transitioning them over to a free-to-play system, and so we'll have to see if Flying Lab Software can do the same with PotBS.
