Apple's iPhone accounted for 66% of Q2 smartphone profit among top vendors

By on July 29, 2011 at 3:15 PM.

Apple's iPhone accounted for 66% of Q2 smartphone profit among top vendors

With just two smartphone models available for sale, Apple took in two thirds of profits from smartphone sales in the second quarter among the top eight vendors in the world. The news comes following Strategy Analytics’ confirmation that Apple is also the world’s top smartphone vendor by volume. Four of the eight major smartphone vendors were profitable in the June quarter — Samsung, Apple, RIM and HTC — while Nokia, Motorola, LG and Sony Ericsson all reported losses. Total profit from sales of smartphones among these eight companies declined overall in the second quarter, but Apple’s profit share jumped from 50% in the second half last year and 57% in the first quarter of 2011 to 66.3% this past quarter. Samsung’s profit share hit 15% in the June quarter, RIM stayed level at 11% and HTC grew from 6% in the first quarter to 7.4%, a new high for the company. Another graphical representation of smartphone profit can be seen below.

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Nielsen: Apple top U.S. smartphone vendor, Android top OS in Q2

By on July 28, 2011 at 8:00 AM.

Nielsen: Apple top U.S. smartphone vendor, Android top OS in Q2

Android continued on its warpath this past quarter, once again showing gains as it retained its position as top smartphone platform in the United States. Nielsen on Thursday issued its second-quarter smartphone market share data for the U.S., and Android finds itself atop the list again with 39% of the market. IOS remains in the No. 2 spot with 28% and RIM slid to 20% in the second quarter. Windows Mobile and Windows Phone combined to take 9% of the market, while webOS and Palm OS combined to account for just 2% of the market. Nokia’s Symbian OS also held a 2% share in the June quarter. On the list of top vendors last quarter, Apple held its lead by a wide margin with 28% of the total U.S. market. HTC devices accounted for 14% of Android market and 6% of the Windows Phone/Windows Mobile market, making it the nation’s top vendor in both categories and No. 2 overall. Samsung owned 8% of the Android market and 2% of the Windows Phone/Windows Mobile market in the U.S. last quarter, while Motorola topped Samsung’s Android share with 11% to slide into the No. 2 spot among Android device manufacturers. More →

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Sprint reports big Q2 loss as it sheds 101,000 postpaid subs

By on July 28, 2011 at 7:30 AM.

Sprint reports big Q2 loss as it sheds 101,000 postpaid subs

Sprint on Thursday reported greater than expected losses in the second quarter despite modest revenue growth. The nation’s No. 3 carrier pulled in $8.3 billion in its June quarter, up 4% from the same quarter a year prior, but it wasn’t enough to bring the company back into the black. Sprint’s net losses in the second quarter totalled $827 million, 11% worse than the $760 million loss it reported in the second quarter of 2010. On the bright side, however, those losses include $588 million in bad investments and a $52 million tax charge from the state of Michigan, so Sprint would have shown sequential and year-over-year improvements if not for those losses. Sprint also reported its best subscriber churn of late in the second quarter, adding more than a million new subscribers despite shedding 101,000 net wireless postpaid customers. “Sprint’s second quarter results, including our fourteenth consecutive quarter of improved customer care satisfaction, our best ever postpaid churn, more than 1 million net wireless subscriber additions and wireless service revenue growth, validate that our focus on providing simplicity, value and an unmatched customer experience is working,” said Sprint CEO Dan Hesse in a statement. Of note, sprint also announced a deal with LightSquared on Thursday that will see it bring 4G LTE services to 260 million Americans by 2015. Sprint’s full earnings release follows below. More →

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LG revenue hits $13.3B in Q2 on strong TV sales; mobile biz grows, still not profitable

By on July 27, 2011 at 10:20 PM.

LG revenue hits $13.3B in Q2 on strong TV sales; mobile biz grows, still not profitable

LG on Wednesday reported second-quarter earnings that showed notable growth, though the consumer electronics giant still hasn’t found a way to return its mobile business to profitability. The company’s revenue for the quarter reached KRW 14.4 trillion (U.S. $13.3 billion), up 9.3% sequentially. Following two straight quarters of losses, LG reported a net profit of KRW 108 billion (U.S. $99.6 million) in the second quarter thanks to solid TV sales and cost-cutting efforts. The company’s operating income of KRW 158 billion (U.S. $145.8 million) was up 25% from the same quarter last year, and up 21% over the first quarter. LG’s mobile business is still struggling, however; despite improved performance, LG Mobile Communications Company still reported a loss of KRW 54 billion (U.S. $49.8 million) on sales of KRW 3.25 trillion (U.S. $3 billion), up 11.6% compared to the first quarter. The South Korean firm said it expects to see modest year-over-year growth in the third quarter. LG’s full press release follows below. More →

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RadioShack dumps T-Mobile, will offer Verizon instead from mid-September

By on July 26, 2011 at 8:30 AM.

RadioShack dumps T-Mobile, will offer Verizon instead from mid-September

Verizon Wireless products and services have been noticeably absent from RadioShack’s wireless portfolio, but that comes to an end this fall. The nationwide retailer on Tuesday announced an agreement that will finally see it begin to offer devices from the country’s top carrier on September 15th. At the same time, The Shack announced that it will stop selling T-Mobile products and services a day earlier on September 14th. Following the company’s second-quarter earnings report, which saw net income slide 53% from the same quarter last year, RadioShack stock climbed 7% on the news. “This is a substantial win for our customers, as this relationship with the nation’s largest wireless provider will further enhance our position as a leading multi-carrier wireless retailer,” RadioShack CEO Jim Gooch said in a statement. “The addition of Verizon Wireless, in combination with our existing carrier partners, positions us to now offer the best assortment of carriers, rate plans, devices and accessories for every consumer need.” RadioShack’s full press release follows below. More →

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Verizon Q2 earnings top estimates; CEO will step down

By on July 22, 2011 at 7:45 AM.

Verizon Q2 earnings top estimates; CEO will step down

Verizon Communications on Friday reported second-quarter earnings that topped the Street’s estimates, though it failed to match AT&T’s impressive wireless growth during the quarter. Revenue climbed to $27.5 billion in the June quarter, up 2.8% from the same quarter last year. EPS was up 6 cents sequentially to $0.57, a huge swing from the second quarter in 2010 when Verizon reported a loss of $0.42 per share. In wireless, the carrier netted 2.2 million subscribers — or “total connections,” rather — excluding gains made through acquisitions, and service revenues climbed 6.6% year-over-year. Verizon now reports total connections, which include machine to machine devices and other non-standard subscribers, and its total now sits at 106.3 million. The carrier also said that it activated 2.3 million iPhone 4 handsets in the June quarter. “In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon’s best quarters since the 2008 economic downturn,” said Verizon Chairman and CEO Ivan Seidenberg in a statement. “We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth.” The company also noted that Ivan Sandberg will step down as CEO, replaced by Lowell McAdam. Sandberg will retail is his as chairman of the board. Verizon’s full press release follows below. More →

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Apple passes Nokia to become world’s top smartphone vendor

By on July 21, 2011 at 10:30 AM.

Apple passes Nokia to become world’s top smartphone vendor

Continued strong sales of Apple’s blockbuster smartphone have propelled the Cupertino-based company into the No. 1 spot globally. As noted by the Financial Times, Apple shipped 20.34 million iPhone handsets last quarter, up from 18.7 million units in the first quarter of 2011. Meanwhile Nokia’s smartphone shipments dropped from 24.2 million units in the first quarter to just 16.7 million smartphones in the June quarter — 3.64 million fewer smartphones than Apple. With just two smartphone models currently available for sale, Apple had already been the world’s top smartphone vendor by revenue and profits. The June quarter marks the first time the company has managed to out-sell Nokia by volume, however. More →

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Android tablets now 30% of the market, Windows tablets outsold PlayBook in Q2

By on July 21, 2011 at 9:45 AM.

Android tablets now 30% of the market, Windows tablets outsold PlayBook in Q2

Microsoft has yet to launch its tablet-optimized operating system and yet slates running various versions of the Windows operating system still managed to outsell Research In Motion’s BlackBerry PlayBook last quarter. According to market research firm Strategy Analytics’ latest report, Windows-powered media tablets owned 4.6% of the global market in the second quarter of 2011. In the same period, RIM’s PlayBook made up just 3.3% of the market. The firm also shows that competition may finally be heating up in the tablet space. Apple, which owned more than 94% of the market in the second quarter last year, saw the iPad’s share slide to 61.3% according to Strategy Analytics. Over the same period of time, Android tablets jumped from a 2.9% share to a 30% share last quarter. Strategy Analytics’ report comes just one week after rumors surfaced that RIM may soon discontinue its current Wi-Fi tablet. RIM would later adamantly deny the rumors, saying it had “no plan to discontinue” production of its Wi-Fi PlayBook. RIM stated last month that it shipped 500,000 BlackBerry PlayBook tablets in the fiscal first quarter following the tablet’s debut this past April.

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Nokia profit dives 44% in ‘clearly disappointing’ Q2

By on July 21, 2011 at 8:01 AM.

Nokia profit dives 44% in ‘clearly disappointing’ Q2

Nokia CEO Stephen Elop on Thursday best summarized Nokia’s second quarter earnings: “our Q2 results were clearly disappointing.” The Finnish phone vendor saw operating profit slide a worrisome 44% to €391 million in the second quarter, down from 704 million in the first quarter and €660 in the second quarter last year. Revenue dipped 11% sequentially to €9.275 billion and EPS was cut in half to $0.06. Revenue from smartphone sales dropped 33% to €2.368 billion on shipments of 16.7 million units, down 34% from the same quarter in 2010 when Nokia shipped 25.2 million smartphones. Nokia still managed to top Wall Street’s expectations for the quarter, however, thanks to royalties from a patent settlement with Apple. “The challenges we are facing during our strategic transformation manifested in a greater than expected way in Q2 2011,” said Nokia CEO Stephen Elop in a statement. He continued, “While our Q2 results were clearly disappointing, we are executing well on the initiatives that are most important to our longer term competitiveness.  Some progress is already evident, and thus we are targeting to end this year with more net cash and liquid assets than at the end of Q2 2011.  We firmly believe that our deliberate and unwavering commitment to making the changes necessary at Nokia is the right way to deal with the disruptive forces in our industry and drive value creation for our shareholders.” Nokia’s full earnings release follows below. More →

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Sony Ericsson posts Q2 loss, blames Japan earthquakes

By on July 15, 2011 at 7:40 AM.

Sony Ericsson posts Q2 loss, blames Japan earthquakes

Sony Ericsson on Friday posted a net loss of €50 million in the second quarter of 2011, blaming supply constraints resulting from devastating earthquakes that shook Japan earlier this year for the difficult quarter. The steep loss was not expected by the Street, and it is down from a profit of €12 million in the second quarter of 2010 and €11 million last quarter. Sony Ericsson’s shipments fell 31% from the same quarter last year to just 7.6 million units, while analysts expected shipments ranging from 8 million to 11 million handsets. Revenue for the quarter totalled €1.19 billion, down from €1.76 billion in the same quarter a year prior. “Sony Ericsson’s second quarter profitability was affected by the March 11 earthquake in Japan. We estimate that the impact of earthquake-related supply chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter,” said Sony Ericsson President and CEO Bert Nordberg in a statement. “Our shift to Android-based smartphones continues with smartphone sales accounting for more than 70 percent of our total sales during the quarter. We have shipped more than 16 million Xperia smartphones to date. We have introduced eight new Xperia smartphones this year and we continue to see strong consumer and operator demand across the Xperia smartphone portfolio.” The struggling phone vendor did say it expects business to improve in the second half of 2011, and it forecasts modest industry growth for the full year. Sony Ericsson said is share of the global Android smartphone market during the second quarter roughly 11%. The company’s full press release follows below. More →

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Global PC market shows growth in Q2; Lenovo wins globally, Apple wins in U.S.

By on July 14, 2011 at 7:55 PM.

Global PC market shows growth in Q2; Lenovo wins globally, Apple wins in U.S.

Market research firms Gartner and IDC have both released preliminary data for global PC sales in the second quarter of 2011, and the reports paint a much improved picture compared to the first quarter of the year. Lenovo was the biggest winner globally in terms of growth according to Gartner, having shipped 10.23 million PCs for a 12% share of the market. The China-based vendor’s PC market share grew a whopping 22.5% compared to the same quarter a year prior, and Lenovo now finds itself in the No. 3 spot globally. HP was still the top vendor with shipments totaling 14.89 million units, and Dell remained in the No. 2 spot with 10.62 million units shipped. Acer and ASUS rounded out the top-5 with 9.30 million units and 4.47 million units, respectively. Though Apple’s operating system share continued to climb last month, the firm still doesn’t sell enough units to bump it from the “Others” category on Gartner’s global table. In the U.S., however, Apple showed the biggest market share gains last quarter with 8.5% growth over the same quarter last year. While IDC’s numbers vary compared to Gartner’s, the end results are the same. IDC has Lenovo’s global growth pegged at 22.9% over the second quarter last year, and it shows that Apple grew even faster than Gartner estimates with 14.7% growth in the U.S. compared to the same quarter a year prior. The two firms agree that Acer was the biggest loser globally. Acer’s share of the worldwide PC market was down 20.4% from the second quarter of 2010 according to Gartner, and down a less alarming 10.1% according to IDC. Taiwan-based Acer was the biggest loser in the U.S. as well, as its share was down 22.6% year-over-year according to Gartner and 25.4% according to IDC. Full press releases from both firms follow below. More →

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Google reports Q2 earnings; stock soars as revenue, EPS crushes the Street

By on July 14, 2011 at 4:38 PM.

Google reports Q2 earnings; stock soars as revenue, EPS crushes the Street

Shares of Google stock jumped more than 10% in after-hours trading following the Internet giant’s second-quarter earnings report. “We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue,” said Google CEO Larry Page in a statement. “I’m super excited about the amazing response to Google+ which lets you share just like in real life.” Google reported revenue of $9.03 billion in its June quarter, up 32% over the same quarter last year and well above the Street’s $6.5 billion consensus. EPS came in at $8.76, also well above Wall Street’s consensus of $7.86, and Google’s net income for the quarter totalled#2.85 billion, up from $2.08 billion in the second quarter last hear. Google also noted that Android activations are currently up to 550,000 devices per day, and its invite-only Google+ social network now has more than 10 million members. Google’s full press release follows below. More →

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HTC sees record revenue in June

By on July 4, 2011 at 9:45 AM.

HTC sees record revenue in June

HTC continued on its warpath toward becoming the No. 4 smartphone vendor in the world last month as the company recorded record revenue of NT$45 billion ($1.55 billion USD) in June. This marks the third straight month that the Taiwan-based mobile giant saw revenue hit a new high, and it was up 10.9% over May. HTC’s second-quarter revenue totalled NT$124.3 billion ($4.2 billion USD), topping the company’s earlier projection of NT$120 billion, and growing 19.43% over the first quarter of 2011. HTC has not yet reported its full earnings for the month of June, but analysts estimate that the company shipped 11.6 million smartphones in the second quarter, bringing first-half shipment totals to roughly 21 million units. More →

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