Revenue from mobile gaming is expected to reach $16 billion in 2016, ABI Research said in a report released last week. ABI expects the growth, which is a big jump from the current $5 billion in revenue expected this year, to come from in-game purchases. “An ever-larger share of mobile gaming revenue is coming from virtual goods and other purchases that take place within the game,” ABI Research senior analyst Aapo Markkanen said. “These in-app payments will account for about one-third of the 2011 revenue base, but by the end of 2016 their share will increase to almost half of the total. Also, the in-game advertising revenue will increase considerably, as more and more advertisers take advantage of mobile games’ mass-media potential.” Games such as Zynga’s Farmville and Capcom’s Smurf Village are examples of titles that rely heavily on in-game sales to produce revenue. Markkanen also said that having good game content is a much better business approach to the mobile gaming market than relying on luck, and he used Rovio’s hit game Angry Birds as an example of that. Read on for the full press release from ABI Research. More →
AT&T reported its second quarter results on Thursday. The company’s consolidated revenues were $31.5 billion, up 2.2% ($680 million) from the same quarter last year. AT&T’s wireless, wireline data and managed services were responsible for 76% of those revenues, and that figure is growing at a rate of 8.3% year-over-year. AT&T Mobility added a total of 1.1 million subscribers during the quarter, including 331,000 net postpaid adds, and it now serves a total of 98.6 million subscribers. The carrier also noted that it had its best-ever second quarter for smartphone sales: it sold 5.6 million total smartphones, up 43% year-over-year. AT&T activated 3.6 million iPhones during the quarter, more than half of the smartphones sold, and said that nearly 25% of the iPhone activations were from new subscribers. AT&T also noted that its planned acquisition of T-Mobile is still on track for closure during the first quarter of next year. Read on for the full press release.
According to research firm DisplaySearch, revenues from touchscreen modules will hit $13.4 billion this year. Projected capacitive screens have seen the largest growth since Apple made them popular on the iPhone in 2007, and DisplaySearch expects capacitive displays to account for 70% of all touchscreen revenues this year. Capacitive display shipments are also expected to jump more than 100% year-over-year. The company said the greatest display growth was in the tablet PC industry, where 26 million touchscreen modules were shipped last year. That figure is expected to jump to 72 million units this year and to more than 100 million units in 2012. ”Touch screen penetration has rapidly increased in mobile phones, handheld games, game consoles, and tablet PC applications, which collectively will account for more than $10.5 billion in touch screen revenues this year,” said Jennifer Colegrove, PhD, vice president of emerging display technologies at DisplaySearch. “In addition, we see strong touchscreen growth over the next several years driven by demand in larger display applications such as all-in-one PCs, notebooks PCs, and consumer gaming.” Read on for the full press release. More →
A new report published by Millennial Media paints a picture of the global smartphone landscape in April of 2011. The company found that Android continued its domination in pure market share, holding a 53% of impressions on the company’s network. Apple’s iOS came in second with 28% and RIM’s BlackBerry OS came in third with 16%; Symbian, Windows, and “other” totalled under 4% of impressions. While Google continues to maim and destroy in terms of handset numbers, Apple continues to hold the crown when it comes to application revenues. “Revenue generated from applications on the iOS platform grew 6% month-over-month and represented 50% of the Application Platform Mix on our network, ranked by revenue, in April,” reads the report. Android is in a close second with 39% of app revenues and RIM ranked third with 9%. What are users downloading? The report states that games, mobile social networking, and music/entertainment applications are the top application categories. Millennial Media sees over 142 million unique mobile impressions on its network each month from over 5,500 different devices. More →
LG struggled in 2010, but it’s slowly righting the ship in 2011. The firm reported its Q1 2011 earnings on Wednesday, and its operating profit of 131 billion won was the first positive return in the past three quarters. LG attributed the change to successful cost-reduction efforts and steady performance across all four of its businesses. The firm reported 13.2 trillion won in revenues, a 0.4% decline year-over-year. Its LG’s mobile communications business posted a loss of 101 billion won, an improvement over the 261 billion won loss the firm noted during the same period in 2010. Handset sales were down 9.2 percent year-over-year and 14.3 percent quarter-over-quarter, and the firm said it shipped 24.5 million phones, a 10% drop year-over-year and a 20% decline quarter-over-quarter. LG hopes the launch of its Optimus Black and Optimus 3D handsets will improve those figures during Q2. Despite shipping more televisions in Q1, the world’s second largest TV manufacturer attributed its 20.6% decline in home entertainment sales to slower demand and a decline in average selling price. LG’s home entertainment company posted an 82 billion won operating profit during the first quarter, which LG said was fueled by its line of 3D and Smart TVs, as well as cost cutting measure the company has taken. Hit the jump for the full release. More →
Netflix released its fiscal first quarter 2011 earnings on Monday and, thanks to record amounts spent on marketing, the firm reported an increase in net customer additions and a spike in revenues. The video subscription service added 3.3 million domestic net customers during the quarter, a 94% increase year-over-year — that service now serves 23.6 million subscribers globally. Netflix reported revenues of $719 million, up 46% year-over-year, and a net income of $60 million, an 88% jump from the same period a year ago. The company said noted that it expects DVD shipments to decline and spending on streaming content to “increase substantially” in the second quarter and beyond. Hit the jump for Netflix’s letter to shareholders. More →
Last week, the FCC ruled in favor of AT&T in a complaint it filed against VoIP home-phone service provider magicJack. For those of you that don’t own a television, magicJack advertises — relentlessly, via infomercial — that its VoIP service will provide unlimited calls to the U.S. and Canada for just $19.95 per year. Users are instructed to plug the USB dongle (pictured above) into their computer, connect any touch-tone phone to the dongle’s opposite end, and start dialing. AT&T has, however, taken exception to one way in which the company generates revenue and keeps consumer costs down. The U.S. wireless carrier’s gripe stems from the fact that magicJack, through its subsidiary YMax, has been charging “call termination fees” when its customers make calls to AT&T customers or AT&T owned toll-free numbers. The FCC has rendered a decision, and found that magicJack is not entitled to these fees. “While the ruling applied specifically to Ma Bell, you would think other carriers would follow the ruling and stop paying those same fees to YMax, which as the FCC ruling notes generates basically all of its traffic from magicJack users,” writes Forbes‘ Eric Savitz. The company has yet to publicly comment on the government body’s ruling. In the meantime, hit the jump to check out one of those awesomely bad infomercials we mentioned More →
Despite ballooning revenues and a record of kick-ass quarterly reports, Apple’s stock has been downgraded from “market outperform” to “market perform” by JMP Securities. The firm said that it made the choice based on the “notable deceleration in [Apple's] primary manufacturing partner Hon Hai (Foxconn) that was emerging even prior to the amplified uncertainty created by developments in Japan.” JMP Securities suggested that Hon Hai’s sales decelerated from 84% year on year in December to 37% in January — then decelerated yet again to 26% in February. As a result, JMP Securities is also dropping its Q2 2011 revenues estimates from $23 billion to $22 billion.