On Thursday LG’s Park Jong Seok, head of the mobile phone business, announced that his company is cutting its full-year smartphone sales forecast by 20% and now expects to sell 24 million smartphones in 2011, down from its earlier forecast of 30 million units. According to Bloomberg, Park noted that the mobile phone business is “slowly” improving but couldn’t provide a firm time on when investors would see improvement on the company’s balance sheet. “It’s hard to give an exact timing, because there are so many market variables, and the situation changes quickly,” he said. Park expects LG to sell 1.7 million units of its new Optimus 3D smartphone by the end of the year and said “we want to differentiate ourselves with good hardware such as the 3D model by taking advantage of what we are strong at, like displays.” On June 4th, LG’s CEO, Koo Bon Joon, said that his company would have a difficult time turning around its troubled handset business during the second quarter. The company’s phone shipments were down 10% year-over-year during the first quarter of 2011, while phone sales were down 14.3% quarter-over-quarter and 9.2% year-over-year. More →
Microsoft announces record Q3 earnings of $16.43 billion in revenue, $5.23 billion of net income driven by Office, Kinect products
Driven by strong growth in its Business and Entertainment & Devices divisions, Microsoft posted record Q3 2011 revenues of $16.43 billion — a 13% increase year-over-year. “We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses,” said Microsoft’s chief financial officer, Peter Klein. “Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications.” The company posted $5.71 billion in operating income, $5.23 billion in net income, and $0.61 earnings per share — a 10%, 31%, and 36% increase respectively year-over-year. Microsoft also noted strong revenues from its Online Services division — which includes search — up 14% from Q3 of 2010. More →
Is controversial radio-host Howard Stern on the verge of signing a three-year deal with Apple, Inc. to host an iTunes radio program? According to whomever operates the Sirius Stock News (@SIRI_STOCK) Twitter account, yes. Yesterday, the account posted a tweet that stated:
Howard Stern on the verge of signing $600 million 3 year agreement with Apple to host an Internet/TV/iTunes broadcast. $SIRI
The idea of Stern and Apple joining forces seems unlikely, but is — if you really stretch your imagination — plausible. We’ve reached out to both Apple and Sirius and will update this report with any additional information provided.
UPDATE: Blog softsquatch.com has published a post taking credit for the tweet and calling the whole thing a hoax. This new information, like the original post on Twitter, has not been authenticated by anyone of authority from Sirius or Apple. More →
You’ve read our Torch review and you’ve decided to take the plunge, huh? Well, you might be happy to know that AT&T is now finally offering the Blackberry Torch in two additional colors: Sunset Red and Pure White. The phones are live on AT&T’s website and can be picked up for $499 without a contract and $99 when you sign up to a two-year agreement. If a color other than black is your cup of tea, jump on over to AT&T’s website to get your order on. Just remember the white after Labor Day rule, ok? More →
Fresh news out of Redmond. Software giant Microsoft has just posted earnings for Q1 of their fiscal year 2011, and the vitals all look good as Microsoft raked in $16.2 billion in revenues; a 25% increase from the same period in 2010. The company posted a net income of $5.41 billion which translated into $0.62 earnings per share; a 51% and 55% increase respectively when compared with Q1 of fiscal year 2010.
“This was an exceptional quarter, combining solid enterprise growth and continued strong consumer demand for Office 2010, Windows 7, and Xbox 360 consoles and games,” said Peter Klein, Microsoft’s CFO. “Our ability to grow revenue while continuing to control costs allowed us to deliver another quarter of year-over-year margin expansion.”
Although inconsequential on the balance sheet, this quarter did mark the first time in fifteen years that Cupertino, CA based Apple, Inc. outperformed Microsoft in revenue; Apple reported $20.34 billion in revenues during the same period. Regardless, Microsoft still — through its focus on highly profitable software (not hardware) — did generate more profit than the iPhone maker… and paid its shareholders a dividend. More →