LG has released its earnings report for the second quarter of 2015, and it’s a snap-shot of how competitive the smartphone market has become. LG’s Mobile Communications Company brought in $3.33 billion for the period, showing a small increase of 1% and generating a modest profit of just $200,000.
On Thursday, Google posted its latest financial figures for the second quarter of 2015, reporting nearly $18 billion in revenues. This is an 11% percent since last year. Most of Google’s revenues unsurprisingly came from mobile search growth. And from that revenue came $3.93 billion.
Early Thursday morning T-Mobile announced second quarter customer addition numbers and they are very good. T-Mobile announced they have added 2.1 million total net customer additions which is a 41% increase year over year and the ninth consecutive quarter with over 1 million. In addition, the carrier had over 1 million branded postpaid net customer additions for this quarter. This makes the fourth consecutive quarter with over 1 million branded postpaid net customer additions. The company also had over 760,000 branded postpaid phone net customer additions which is up 31% since this time last year.
Samsung Electronics has warned investors that its third-quarter earnings will fall below market expectations as a result of declining product prices and increased competition in the smartphone market, despite a rise in the company’s total sales.
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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