HTC on Tuesday forecast lower revenue for the second quarter this year, trimming its profit margin guidance at the same time. The struggling Taiwan-based vendor sees revenue falling 16% from the second quarter last year to NT$105 billion, and gross profit margin is expected to slide to 27% from 28.8% during the same period a year earlier. HTC’s anticipated second-quarter revenue represents a 55% improvement over the first quarter of 2012, which saw HTC’s net profit decline sharply to its lowest point since 2006. The vendor’s new One-series smartphones recently began rolling out internationally, and both AT&T and T-Mobile will launch new HTC handsets in the coming weeks. BGR reviewed the HTC One S last week and called it the best smartphone ever to come to T-Mobile, but HTC has its work cut out for it — Apple’s iPhone 4S remains the best-selling smartphone in the world and Samsung will unveil its next-generation flagship Galaxy phone next week, just three days after HTC’s One X goes on sale at AT&T.
Apple’s stock continued to slide on Tuesday morning as some analysts suggest AT&T’s earnings point to a possible rare miss for the Cupertino, California-based company. Wall Street expects Apple to report iPhone channel sales of 32 million units when it posts its earnings after the market closes on Tuesday, but several analysts have made last-minute adjustments to their estimates following AT&T’s earnings report on Tuesday morning. More →
According to a recent report from Forrester Research, Apple’s iPad tablet PC will continue to lead the tablet market through 2016 despite increased competition. The Cupertino-based company’s iPad is expected to account for 53% of the global tablet market in 2016, at which time emerging markets may account for nearly 40% of all tablet sales, The Financial Post reported on Monday. Over the next five years, the global tablet market is estimated to increase to 375 million devices, up from 56 million sold in 2011, for a total global base of more than 760 million tablet owners. The report identifies Amazon’s Kindle Fire as the only viable alternative to the iPad, while devices from Google and Research In Motion are said to be failing to keep pace with Apple’s tablet. Forrester also indicated that by 2016, about one-third of all tablet sales will be for businesses, accounting for roughly 122 million units. More →
AT&T on Tuesday reported its results for the first quarter of 2012. Following a record holiday quarter that saw the nation’s No.2 carrier pull in $0.42 per share excluding one-time charges on sales of $32.5 billion, analysts were expecting first-quarter EPS of $0.57 on revenue totaling $31.85 billion. The company beat expectations, posting a profit of $0.60 per share on in-line sales of $31.8 billion. AT&T activated 3.6 million iPhones during the first quarter last year, and that number climbed to 4.3 million in the first quarter of 2012, down seasonally from a record 7.6 million during the holiday quarter. Total smartphone sales for the first quarter this year came in at 5.5 million, in line with the 5.5 million smartphones it sold in the first quarter of 2011, though AT&T says that its first-quarter smartphone sales set a new record this year. The carrier added 726,000 net subscribers last quarter as its total subscriber count reached 103.9 million, up from 103.2 million in the December quarter. AT&T’s stock is trading up 0.5% ahead of the bell. The company’s full press release follows below. More →
Netflix posted its financial results for the first quarter of 2012 after the bell on Monday. The company reported a loss of $0.08 per share, or$5 million, on $870 million in revenue, beating analysts’ consensus. Netflix posted a profit of $1.11 per share on $719 million in revenue in the first quarter last year, and Wall Street was expecting a loss of $0.27 per share on $866 million in sales this past quarter. All eyes were on Netflix’s subscriber additions this quarter, and the company said it added nearly 3 million streaming customers in the first quarter, including 1.21 million international streaming subscribers. The company shed more than one million DVD rental subscribers in the U.S. after losing 2.76 million DVD subscribers in the fourth quarter. Netflix’s global streaming subscriber count now sits at more than 26 million, up from 24.4 million at the end of the fourth quarter. In the second quarter, Netflix expects a net loss of between $6 million and $8 million as domestic streaming subscriber totals reach between 23.6 million and 24.2 million, below the Street’s estimates of 24.5 million. Shares of Netflix stock tumbled nearly 15% in after-hours trading on Monday following the release of the company’s earnings report. More →
Apple’s upcoming entry into the high-definition television space is set to blow the high end of the TV market wide open while current market players continue their struggles to compete on price. Market research firm KAE along with online polling company Toluna recently conducted a survey and determined that 25% of consumers in the United States would purchase a physical Apple television set if the Cupertino-based company launches one. Beyond early consumer interest, however, current TV industry players may have left a gaping hole that will bring Apple billions when it fills the void. More →
4G LTE devices are apparently so hot this year, Sprint is selling LTE phones without a network to support them. Sales of 4G-equipped smartphones, tablets, portable hotspots and other devices are set to explode in 2012 as carriers continue to expand 4G coverage and roll out new networks. In a recent report, market research firm ABI Research said that 4G device sales will balloon nearly 300% to 87 million units in 2012. ABI notes that higher prices are still a barrier to 4G devices in some regions, however, and consumer confusion is an issue as well. “As evidenced by the Australian iPad 3 promotion fiasco, when iPad 3s were being promoted as being ‘LTE-ready,’ even though the modem is unable to access the Australian LTE spectrum band, the number of LTE spectrum bands will hamper initial pricing and product roll-out,” ABI analyst Philip Solis said. “Nevertheless, in addition to 61 million 4G handsets being shipped in 2012, we estimate 26 million 4G non-handset products will be shipped. In the short-term, most of that will reflect customers purchasing USB dongles for legacy laptops and netbooks, followed by customer premise equipment, or home modem, purchases.” ABI’s press release follows below. More →
Following the huge loss reported by major mobile partner Nokia, Microsoft posted its fiscal third-quarter results on Thursday following the close of the market. Wall Street was expecting the software giant’s earnings to slide 7% year-over-year to $0.57 per share on sales of $17.18 billion, up 5% from the same quarter in 2011. Microsoft reported earnings of $0.60 per share, beating estimates, and revenue came in at $17.41 billion. Operating income totaled $6.37 billion, up 12% year-over-year. Read on for more. More →
Sales of Apple’s popular iPhone line of smartphones will continue to decline until the next-generation model launches later this year according to one analyst. Mike Walkley of Canaccord Genuity on Thursday raised his price target on shares of Apple stock to $740, reiterating a Buy rating. Walkley believes that Apple will post strong results for the second fiscal quarter ended in March, however he lowered his EPS estimates for fiscal 2012 to $43.13 from $44.58. Read on for more. More →
Verizon on Wednesday reported earnings for the first quarter that narrowly beat analysts’ expectations. The nation’s top carrier posted a profit of $0.59 per share, up about 16% over the same quarter last year and $0.01 above Wall Street’s consensus. Revenue grew 4.6% year over year to $28.2 billion, and net subscriber additions totaled 734,000. Verizon said that 47% of its postpaid subscriber base owned smartphones at the end of the first quarter, up from 43.5% in the same quarter last year. Monthly average revenue per user grew 3.4% to $53.66. “Verizon delivered double-digit earnings growth and strong cash flow this quarter,” Verizon CEO Lowell McAdam said. “We built momentum coming out of 2011, and our results show that we continue to execute in the key growth areas of our business. Verizon Wireless produced both great growth and great margins, and we produced another strong quarter of FiOS growth. We are confident we will improve Wireline margins for the full year. Our repositioning of Verizon Enterprise Solutions has better aligned our strengths in high-growth markets, and we expect our enterprise business to contribute even more to overall Wireline revenue growth and profitability over time.” Verizon’s full press release follows below. More →
Nokia warned that its first-quarter earnings would be weak, and the numbers are now in. Revenue declined 30% to €7.4 billion, or $9.7 billion USD last quarter, down from €10.4 billion, or $13.6 billion in the same quarter last year. The company posted a massive €1.3 billion loss, or $1.7 billion USD, which breaks down to a loss of €0.25 per share. Smartphone sales plummeted 52% to 1.7 billion units in the first quarter, and net device sales dropped 40% to 4.2 billion units. Read on for more. More →
Apple’s iPhone 4S marked the biggest device launch in the company’s history. A number of industry watchers and news sites were expecting a completely redesigned handset, but despite the new model’s striking resemblance to the iPhone 4, it sold more than 4 million units in its debut weekend alone. According to Goldman Sachs analyst Bill Shope, Apple’s next smartphone launch will be even bigger. Read on for more.
Microsoft and its partners have seemingly set some very lofty goals for Windows 8. Citing multiple anonymous sources at various unnamed Taiwan-based original device manufacturers, DigiTimes on Wednesday reported that Windows and Intel want top-tier vendor partners to launch an all-out assault on Apple’s iPad. The iPad’s share of the tablet market currently sits at 70% according to the report, but Microsoft and Intel want to push that figure down to 50% by the middle of next year. If earlier reports pan out, devices powered by the Windows 8 platform will begin rolling out early in the fourth quarter this year, and that gives Microsoft and its partners roughly three quarters to steal 20% of Apple’s market share. DigiTimes states that there will be 32 Windows 8 tablets available from various vendors by the end of the year. More →