Most people have at least one Sony-branded item in their homes as they have been one of the biggest electronics companies in the world for quite some time now. So, it may come as a surprise that after an internal review, Sony is expecting losses in the ballpark of $1.7 billion dollars. The Japanese tech giant attributes these losses to their mobile division and will be forced to restructure their strategy to reduce risk and volatility and to guarantee “more stable profits”. According to their report, this will be achieved by releasing less mid-range devices and focusing on premium, top-tier handsets. It should be interesting to see what the future holds for Sony’s mobile division.
Jeffries analyst Hyunwoo Doh has lowered his operating earnings estimate for Samsung in the fourth quarter, mainly due to slowing smartphone sales. According to Doh there is a slower growth in high-end smartphones, leading to lower operating earnings for the Korean company.
Slowing smartphone sales aren’t the only problem for Samsung. Another problem is the fact that there is a lower dollar versus the Korean Won, so for every dollar Samsung makes in the US, they are receiving fewer Won than last year.
It feels as though it has been quite a while since HTC has released positive news about its sales numbers… The wait will continue.
Earlier today, HTC announced that it expects a 30% decrease in revenue in the next quarter as the company struggles to release popular mid-range devices, and as the high-cost, low-margin HTC One fails to garner the same explosive sales as its competitor at Samsung.
In its press release, the company blames its poor quarter on a “higher cost structure and a lack of economy of scale.”
Unsurprisingly, HTC announced that they have a number of mid-range and innovative products in line for release next quarter. Hopefully their future plans turn things around for the Taiwanese phone maker, which currently ranks ninth in global market share, holding 2.4 percent of the market.
Get ready for the most obvious statement of the year: smartphones are a big deal. Some of us want a concrete number behind that, though. Now that we’ve got all the major earnings reports for the year out of the way, we’ve got that concrete number. Over 200 million phones were shipped in Q4, and the annual total for smartphones in 2012 was 671 million. That’s a pretty huge number, and shows a 42% growth year-over-year. An interesting statistic out of that is that Samsung shipped 63 million smartphones in the last quarter, which accounts for about 30% of phones in that quarter. 1 out of every 3 phones sold over the holidays was a Samsung device. That’s something to be proud of if you’re Samsung.
source: Juniper Research
AT&T’s posted their Q4 earnings, and they had a pretty impressive year. They posted a 3.9 billion dollar loss for Q4, but a 7.3 billion dollar profit for the fiscal year. Worthwhile tradeoff? I doubt you’ll hear AT&T complaining too much either way. They also activated 10.2 million smartphones last quarter, a number they’re claiming is “record setting.” AT&T’s biggest competitor, Verizon, only did 9.8 million smartphones, so that gives the claim quite a bit of credibility. Those 10.2 million smartphones accounted for 89% of AT&T’s total postpaid sales, as well. They’ve also added 1.1 million new customers, 780,000 of which were postpaid users. Overall, there’s room for improvement, but it wasn’t a bad year for AT&T by any stretch.
Sprint has released their earnings during the 3rd quarter of 2012. Here are some of the key information in their findings:
- Sprint platform wireless service revenue growth of 14 percent year-over-year; eighth consecutive quarter of double digit percentage year-over-year growth
- Best ever third quarter for both Sprint platform postpaid churn of 1.88 percent and Sprint platform prepaid churn of 2.93 percent
- Strong total iPhone sales of approximately 1.5 million – 40 percent to new customers
- 4G LTE now launched in 32 cities with over 115 more expected in coming months
Sprint is also reporting their wireless service revenues of nearly $7.3 billion during the quarter, an increase of nearly 6 percent year-over-year. Also looks like the iPhone 5 helped out a lot in during Sprint’s 3Q as a total of 1.5 million units were sold during that time. Last but not least, Sprint claims they have sold over 1 million LTE capable devices even before the launch of the iPhone 5.
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The very first Samsung Android phone I used was the Samsung Behold II. I won it from a contest and I was beyond excited to power it up when it arrived at my doorstep. Well, after about a week, sadly, my excitement was short lived. It constantly froze up on me, music wouldn’t load properly and the onscreen keyboard lagged and was inaccurate. Fast forward, the Samsung Galaxy S III has been released and due to it’s popularity, retailers are selling through them at incredible rates.
Today Google announced their Q2 earnings, reporting 21% growth year over year for revenue, to the tune of $10.96 billion. GAAP income was also listed coming in at $2.79 billion, up from 2.51 billion in Q2 of 2011.
As of Q2, Google reports having $43.1 billion in cash reserves and equivalents. The Mountain View company also increased their workforce by about 5,600 people, very impressive if I might add.
In light of Google’s acquisition of Motorola, their revenue was also listed on the earnings sheet. Revenue for “hardware and other” was listed at $1.25 billion with $843 million coming from mobile and the $407 million coming from home.
In an unrelated note, I still hope Google will take advantage of owning Motorola. I would love to see a stock Moto Nexus. Shall we call it the Nexus M, or maybe the Nexus RAZR? What do you think?
Verizon just released their Q1 financials and let’s just say… things are mighty green. Their wireless division has had its highest growth in the past three years, with a 7.7% increase in revenues year-over-year, and 8.9% growth in retail. To top it off, their revenue from data services grew an astounding 21.1%.
The addition of 500,000 new postpaid customers doesn’t hurt, bringing their total to 88 million. Of those, 47% use a smartphone, with more being added every day as they expand their LTE coverage. Looks like Big Red has money to burn, but the high cost of running a huge network will require much of that money to continue growing. Read the full press release after the break.
Google just announced earnings, and they destroyed expectations as earnings came in a $2.73 billion while revenue was $7.51 billion. During the conference call, Google CEO Larry Page had some interesting things to say regarding Ice Cream Sandwich, which will be unveiled next Wednesday October 19 in Hong Kong.
“I’m super excited about the soon to be released new version of Android called Ice Cream Sandwich. That’s right, Ice Cream Sandwich. You don’t believe what we’ve managed to get done in this release,” said Page.
Other interesting things to note is that Android now has 190 million activations in 130 countries, up from 135 million 3 months ago. Google+ has over 40 million users, and over 3.4 billion photos have been uploaded to date.