Sony confirms plans to shed 10,000 jobs amid shake-up

By on April 12, 2012 at 7:30 AM.

Sony confirms plans to shed 10,000 jobs amid shake-up

Sony on Thursday confirmed earlier rumors suggesting plans to release 10,000 workers during the course of fiscal 2012. The figure includes employees expected to leave Sony as part of various business sales, however. The move, which is part of a larger effort to restructure and cut costs, will result in a 6% workforce reduction. The Japan-based consumer electronics giant has been in decline for years, and the company said earlier this week that it will report a worst-ever $6.4 billion loss when it posts its full-year earnings for the fiscal year ended March 31st. Sony plans to right the ship by strengthening its position in the digital imaging, gaming and mobile markets, turning around its TV business, addressing emerging markets more aggressively, “creating new businesses and accelerating innovation,” and selling off a number of divisions as it streamlines operations. As a result of its efforts, the company hopes to achieve a 5% operating margin on $105 billion in revenue and a 10% return on equity in fiscal 2014. Sony’s full press release follows below. More →

No Comments

Samsung takes another page from Apple’s playbook: increase margins

By on February 7, 2012 at 10:20 AM.

Samsung takes another page from Apple’s playbook: increase margins

Apple has argued on multiple occasions that Samsung builds mobile products that “blatantly imitate the appearance of Apple’s products to capitalize on Apple’s success.” Courts seem to disagree for the most part, with only a pair of injunctions having been issued despite dozens of complaints Apple has filed around the world. There are some areas where Samsung does seem to take pages out of Apple’s playbook, however — Samsung’s new anti-iPhone ad strategy is somewhat reminiscent of Apple’s famous “I’m a Mac” campaign, for example — and market research firm Allied Business Intelligence may have uncovered another one this week. Read on for more. More →

No Comments

Verizon reports solid Q3; revenue in line with the Street, wireless connections total 107.7M

By on October 21, 2011 at 7:59 AM.

Verizon reports solid Q3; revenue in line with the Street, wireless connections total 107.7M

Verizon Communications on Friday reported earnings for the third quarter of 2011. Total consolidated operating revenue came in at $27.91 billion, up 5.4% over the third quarter last year and narrowly beating the Street’s $27.88 billion estimate. The carrier reported non-GAAP earnings of $0.56 per share, up from $0.55 in the third quarter of 2010. Verizon’s wireless business recorded revenue of $15 billion in the quarter, up 6.1% from the same quarter last year, and wireless connections now total 107.7 million. AT&T on Thursday reported that its subscriber count surpassed 100 million for the first time in the third quarter. Verizon’s net wireless connection additions in the quarter totalled 1.3 million while AT&T added 2.1 million new subscribers in the same quarter. Verizon’s wireless data revenue was up 20.5% year-over-year to $6.1 billion, representing 40.6% of all service revenues. The company’s full press release follows below.

More →

11 Comments

Nokia shocks the Street in Q3 on solid feature phone sales

By on October 20, 2011 at 9:25 PM.

Nokia shocks the Street in Q3 on solid feature phone sales

Nokia on Thursday posted better-than-expected results for the third quarter thanks to mobile device shipments that exceeded analysts’ expectations by a substantial margin. The Finnish phone vendor shipped 89.9 million feature phones, crushing expectations which were as low as 67 million units for the quarter, and revenue from its mobile devices group came in at €5.39 billion compared to the Street’s consensus of €5.06 billion. Total revenue fell 13% from the third quarter last year to €8.98 billion, also beating the Street’s €8.66 billion consensus, and EPS excluding some costs was €0.03 for the quarter. Wall Street was expecting earnings of €0.02 per share. Total mobile device shipments grew 20% sequentially to 106.6 million units, but average selling prices were down 18% quarter-over-quarter and 22% from the third quarter last year. Nokia’s net loss in the quarter was just €68 million while the Street was expecting a loss of €229 million. Nokia’s full earnings release follows below. More →

4 Comments

Apple maintains big margins on iPhone 4S according to UBM analysis

By on October 6, 2011 at 7:00 AM.

Apple maintains big margins on iPhone 4S according to UBM analysis

Apple is looking at another big-margin device launch next week when the tech giant’s fifth-generation iPhone finally hits store shelves on October 14th. Market research and intelligence firm UBM TechInsights on Wednesday estimated that Apple’s 32GB iPhone 4S carries a materials cost of $203 per handset for the Cupertino-based company. UBM arrived at that number by using component costs from its iPhone 4 teardown as a base and then making slight adjustments for known changes in iPhone 4S components, such as the new A5 processor. Apple’s Canadian website states that the MSRP for its iPhone 4S starts at $649 (CAD, though Apple’s pricing in Canada and the U.S. are aligned in most cases), so presuming the company will stay true to form and add $100 to the MSRP of the 32GB model, Apple is looking at a margin of roughly $546 when taking only build of materials (BOM) into account. After additional expenses, however, Apple still looks to have another solid money-maker on its hands. UBM TechInsights’ full press release follows below. More →

28 Comments

Amazon to lose money on each Kindle sold? UBM says Amazon will make $50 per unit

By on October 3, 2011 at 4:00 PM.

Amazon to lose money on each Kindle sold? UBM says Amazon will make $50 per unit

Amazon will reportedly turn a profit of approximately $49 for each Kindle Fire it sells following the device’s launch next month. Earlier rumors painted a very different picture of Amazon’s strategy with its first media tablet, suggesting the retailer would be selling the slates at a loss of between $10 and $50 per device. The theory, these reports claimed, was that Amazon hoped to make up the difference and then some thanks to deep integration with paid Amazon services such as Amazon Video On Demand, the company’s popular MP3 music store and its Kindle eBook store. According to market research and consulting firm UBM TechInsights, however, these reports are not accurate. In fact, the firm says Amazon is looking at a sizable 25% profit margin on the device despite its low end user pricing. Read on for more. More →

25 Comments

Samsung profit falls 18% in Q2; company to stop reporting smartphone, tablet shipments

By on July 29, 2011 at 8:40 PM.

Samsung profit falls 18% in Q2; company to stop reporting smartphone, tablet shipments

Samsung on Friday reported earnings for the second quarter of 2011 that showed a significant decline in profit despite modest revenue gains. Samsung’s revenue ticked up 4% year-over year to 39.44 trillion Korean won but its consolidated net income of 3.51 trillion won was a sharp 18% decline from the same quarter in 2010. The company’s semiconductor business recorded revenues of 1.79 trillion won in the second quarter, which was up sequentially from the 1.64 billion won but down from 2.94 billion won in the second quarter last year. Samsung’s LCD panel division was hit the hardest, registering an operating loss of 210 billion won on revenue of 7.09 trillion won, which was down 9% year-over-year. Samsung’s telecommunications business grossed 12.18 trillion won in the June quarter, and profit came in at 1.67 trillion won. “Despite the challenging business environment and global economic uncertainties, we achieved continued year-on-year revenue growth in the second quarter driven by mobile device sales, particularly the success of our smartphones,” said Robert Yi, Vice President and Head of Samsung Electronics’ Investor Relations Team, in a state. “Heading into the third quarter – which typically sees increased consumer demand for electronics – we expect competition to remain tight, and will continue to enhance our cost competitiveness and technology leadership in the components businesses.” Samsung stated that it will no longer report smartphone or tablet shipment figures in its earnings reports. Market analysis firm Strategy Analytics puts the company’s smartphone shipments at an impressive 19.2 million units last quarter, which would secure it a No. 2 spot globally behind Apple. The company’s full press release follows below. More →

17 Comments

As analysts and investors jump ship, Macquarie sees opportunity in RIM

By on June 27, 2011 at 12:01 PM.

As analysts and investors jump ship, Macquarie sees opportunity in RIM

Following first-quarter earnings that sent investors and the media into a tizzy, analyst coverage of RIM has been fairly monotone. The consensus? The company is doomed. Sure, there’s been an odd half-hearted vote of confidence here and there, but the majority of analyst coverage we’ve seen has been negative and investors are exiting en masse. In a 45-page report published last Tuesday, however, analysts at Macquarie Capital Markets paint a different picture of RIM’s business. Despite product delays and declining market share, the firm issued an Outperform rating and set a 12-month target on shares of RIM stock at $40. Read on to find out why. More →

39 Comments

RIM reports Q1 earnings: misses analyst estimates, Q2 outlook misses, layoffs coming

By on June 16, 2011 at 4:32 PM.

RIM reports Q1 earnings: misses analyst estimates, Q2 outlook misses, layoffs coming

Research In Motion on Thursday reported earnings for the first quarter of fiscal 2012. After cutting its first-quarter outlook at the end of April, RIM’s May quarter came in below analyst estimates. First quarter revenue came in at $4.9 billion versus the Street’s estimate of $5.5 billion, and device shipments totalled 13.2 million versus expectations of 13.5 million. Net income for the quarter was $695 million, down from $769 million in the same quarter a year earlier. Earnings per share in the first quarter beat estimates by a penny at $1.33. RIM’s revenue for the quarter breaks down as 78% hardware, 20% service, and 2% software and other revenue. In the second quarter, RIM trimmed its outlook to $4.2-$4.5 billion in revenue, significantly under the Street’s consensus of $5.46 billion. RIM’s second-quarter EPS forecast is just $0.75-$1.05 versus $1.40 consensus. For the full year, RIM cut its EPS outlook from $7.50 to between $5.25 and $6 per share. “Fiscal 2012 has gotten off to a challenging start,” RIM Co-CEO Jim Balsillie said in a statement. “The slowdown we saw in the first quarter is continuing into Q2, and delays in new product introductions into the very late part of August is leading to a lower than expected outlook in the second quarter.” RIM also said it would soon begin a “program to streamline operations” that will involve job cuts. Shares of RIM stock opened down 15% in after-hours trading. RIM’s full press release follows below. More →

44 Comments

Sony to post $3.2 billion annual loss

By on May 24, 2011 at 2:19 AM.

Sony to post $3.2 billion annual loss

Sony Chief Financial Officer Masaru Kato announced to the press on Monday that the company expects to post an annual loss of $3.2 billion for its fiscal year ending in March 2011 — the second largest loss in company history. The news comes as yet another blow for the Japanese consumer electronics giant, whose online networks have been the target of a series of cyberattacks that impacted more than 100 million customers. Sony had previously expected to post a profit this year, however the company had to write off $4.4 billion for a tax credit from a previous quarter. A series of earthquakes that rocked Japan earlier this year had a negative impact on the company as well, slowing production and destroying factories. The affect of the quakes carried over to the company’s first quarter, Kato told the press, but Sony is still optimistic about 2011/2012. For the fiscal year ending in March 2012, Sony expects to post an operating profit of 200 billion yen, or $2.45 billion at today’s exchange rate. More →

8 Comments

Apple reports Q2 earnings; iPhone beats the Street, iPad misses big, profit up 95%

By on April 20, 2011 at 4:39 PM.

Apple reports Q2 earnings; iPhone beats the Street, iPad misses big, profit up 95%

Apple on Wednesday reported earnings for the second quarter of fiscal 2011. Reports from Tuesday suggesting Apple might miss iPad sales estimates were accurate as Apple reported second-quarter sales of only 4.69 units compared to 7.33 million iPads last quarter. Analyst estimates fell between 6 and 8 million iPads for the March quarter. Apple’s iPhone sold 18.65 million units globally in the second quarter compared to 8.75 million units in the same quarter last year and 16.24 million units in the first quarter of fiscal 2011. iPod sales came in at 9.02 million units, down from 10.89 million in the second fiscal quarter of 2010 and 19.45 million last quarter. Wall Street was expecting 16 million iPhones and 9.9 million iPods in the quarter. Mac sales narrowly beat the Street’s estimates of 3.6 million units, totaling 3.67 million units in the March quarter, up from 2.94 million last year and down from 4.13 million from last quarter. Revenue for the second quarter came in at $24.67 billion and Apple recorded $5.99 billion in profit, up 95% from $3.07 billion in the same quarter last year. Apple noted in its earnings call that the earthquakes in Japan will not affect Apple’s supply chain or its products in the third quarter. The company’s full press release can be seen after the break. More →

78 Comments

Google posts 27% increase in revenues; Q1 earnings slightly miss mark

By on April 14, 2011 at 5:30 PM.

Google posts 27% increase in revenues; Q1 earnings slightly miss mark

Internet juggernaut Google has released its financial results from the first-quarter of 2011, and things are looking pretty good. The company posted revenues of $8.58 billion during the quarter — which represents a 27% increase year-over-year — with $5.88 billion of that figure being generated by Google-owned websites. The company failed to meet Wall Street’s earning expectations, however, coming in $0.03 shy of the predicted $8.11 earnings per share. “These results demonstrate the value of search and search ads to our users and customers, as well as the extraordinary potential of areas like display and mobile,” said Patrick Pichette, the company’s CFO. “It’s clear that our past investments have been crucial to our success today–which is why we continue to invest for the long term.” said Patrick Pichette, the company’s CFO. The company’s stock was trading down nearly 5% in after-hours trading at time of article writing. The full Q1 report is after the break. More →

7 Comments

Acer CEO resigns as company hits rough patch

By on March 31, 2011 at 9:09 PM.

Acer CEO resigns as company hits rough patch

It appears as though Acer founder Stan Shih will get his wish, as news of CEO Gianfranco Lanci’s resignation could mark the start of a much needed overhaul. Shih, who retired from the company in 2004, said on Tuesday that Acer is in need of an overhaul and a shift in focus from being a leader in the PC market to increasing profit margins. On Thursday, Acer announced that Lanci is resigning effective immediately, and company chairman J. T. Wang will step in as interim CEO until the company finds a suitable replacement. “The personal computer remains the core of our business,” said Wang in a statement. “We have built up a strong foundation and will continue to expand within, especially in the commercial PC segment. In addition, we are stepping into the new mobile device market, where we will invest cautiously and aim to become one of the leading players.” Wang continued, “In this new ICT industry, Acer needs a period of time for adjustment. With the spirit of entrepreneurship, we will face new challenges and look to the future with confidence.” More →

6 Comments