LG ships 12 million smartphones in third quarter, looks forward to strong holiday sales

by Jeff Causey on
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LG released their third-quarter financial results and the news is good for the Korean manufacturer. In particular, LG Mobile Communications Company reported their third-quarter revenue increased by 24 percent compared to the same period last year. This was generated off of shipments of 12 million smartphones, although LG did indicate profitability and average selling price were impacted by competition and their marketing investments. LG probably helped their cause with the new LG G2, which may not be the top phone on the market right now, but it certainly provides a viable option for buyers who may be growing increasingly wary of either Samsung or HTC products. LG anticipates they think they will be able to continue to capitalize on sales of the premium LG G2 device and supplement that with mid-tier products like the L II and F series devices during the holiday season.

The company as a whole posted revenues of KRW 13.89 trillion ($12.51 billion USD) and operating profit of KRW 217.80 billion ($196.34 million USD) during the third quarter. This was an increase in operating profit of 27 percent compared to the same period last year. As we have watched HTC continue to fade away over the past couple years, we might be witnessing LG’s rise to a position as Samsung’s main rival in the Android device market.

source: LG

Could HTC merge with Huawei?

by Jeff Causey on
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As HTC continues to battle a two-year financial slide, one analyst has suggested a merger with Huawei could be a way out for HTC. HTC and their fans had high hopes the HTC One would prove to be a product with enough popularity to at least turn the ship around financially. During the first half of 2013, HTC also started to concentrate on some unique marketing strategies, usually aimed squarely at market leader Samsung. To their credit, the HTC One is generally regarded as a premiere smartphone and has garnered extensive praise throughout the industry. Sales of the device did have a positive financial impact on HTC during the second quarter of 2013 when it was finally released, but not to the extent hoped for. Despite plans to model a sales strategy similar to many other major manufacturers, HTC sales are predicted to stay flat for the third quarter, leading some to question what other steps the company could take to prevent a complete collapse. » Read the rest

HTC releases strong May 2013 revenue numbers

by Jeff Causey on
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After watching HTC struggle financially during the past couple years, we have news from them today showing a nice rebound during the month of May. Unaudited revenues rose to NT$29.0B ($969M USD), following up the month of April 2013 when unaudited revenues were NT$19.6B ($655M USD). That is a 48% increase month to month. To add some context, during the first quarter of 2013 revenues for HTC were only NT$42.8B ($1.43B USD), which means HTC has already generated more revenue in just two months of the second quarter than they did during the whole first quarter of the year. » Read the rest

T-Mobile revenues dip, but customer base growing

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T-Mobile US released highlights of their 2013 first quarter financial results showing positive growth in their customer base. For the first time since 2009, the carrier experienced positive customer net additions. This was a result of continued strength in prepaid net additions, the seventh consecutive quarter of growth, combined with a significant improvement in postpaid losses. Those losses were down to 199,000, a 61% improvement compared to the prior year when that number was in the 500,000+ range. Overall, T-Mobile added 579,000 customers and now claims 34 million customers. The growth in customers was attributed mainly to the introduction of their new “Simple Choice” Un-carrier plans and the addition of the iPhone to their portfolio. » Read the rest

HTC adds context to first quarter financial numbers

by Jeff Causey on
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Last month HTC released their financial results for the first quarter of 2013 and the numbers were unpleasant reading. In a recent conference call, HTC sought to put some context to the numbers for the benefit of investors and analysts. CEO Peter Chou acknowledged the problems supply chain delays had caused for HTC and the release of the HTC One. Nevertheless, he believes HTC ultimately had a successful launch of the HTC One and looks forward to sales of about 10 million units during 2013. Most of that will take place during the final three quarters of the year as analysts from CLSA Asia-Pacific Markets project only 750,000 units were sold during the first quarter. For comparison, Samsung is projected to to sell 60 million Galaxy S 4 units. » Read the rest

HTC profits continue in wrong direction in record-setting fashion

by Jeff Causey on
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Over the past 18 months or so, we have watched HTC’s financial deep dive as it keeps setting record-low quarterly profit numbers. HTC was banking on the HTC One leading a rebound for the company. That could still happen, but after delays, the HTC One was not able to ship in any meaningful numbers during the first quarter of 2013, leading to more disappointing financial results for HTC. According to HTC’s just released report, net income for the first quarter was NT$85 million ($2.84 million USD), a mere pittance compared to the NT$10.9 billion ($363 million USD) for the same period a year earlier. » Read the rest

Sprint reports strong sales for 4th quarter, year driven by 4G LTE growth

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Sprint reported fourth quarter and annual financial results today driven by record wireless service revenues. Fourth quarter net operating revenue totaled $9 billion, including $7 billion from Sprint platform wireless service. On an annual basis, the numbers were $35.3 billion and $27.1 billion respectively. This represented growth of 12 percent year-over-year for the fourth quarter and 15 percent growth for the full year. » Read the rest

HTC issues warning – revenues, profit margin expected to decline in 4th quarter

by Jeff Causey on
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For Android fans, today has been a day to enjoy mostly good news in terms of the continued growth of the Android ecosystem. We see that Android tablets grabbed 41% market share for the third quarter, an unexpected jump in light of Apple’s dominance in the market segment. Meanwhile, Samsung reported phenomenal third quarter profits, setting records for smartphone shipments and establishing themselves as the worldwide leader in smartphones. However, not all of the news is coming up roses. Case in point, new guidance from HTC which should serve as a warning about how quickly things can change.

HTC issued their warning Friday, indicating they expect further declines in operating profit margins and revenues during the fourth quarter. We previously reported on HTC’s third quarter financial results which continued a string of disappointing quarters. These results are a contrast to HTC’s spot as one of the top five smartphone manufacturers in the world and their former position as Apple’s chief rival in the U.S. market only two years ago. According to HTC, they expect operating profit margin to drop to only 1%, the lowest it has been in a decade. Meanwhile, they anticipate fourth-quarter revenue to fall 41% compared to the same period a year earlier. These latest projections are worse than analysts previously expected.

Do you think HTC can turn things around?

source: NASDAQ

AT&T reports record sales for Android devices during third quarter

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AT&T announced their third quarter financial results this morning, indicating they experienced record sales for Android devices. Sales of smartphones for the quarter rang up to 6.1 million devices, 1.3 million more than for the same period last year. AT&T indicates smartphone sales represent 81% of their device sales and almost 64% (about 44.5 million) of all wireless customers now have smartphones. AT&T also reports that 89 percent of their smartphone subscribers are on a FamilyTalk, Mobile Share, or business plan. AT&T seems to be quite happy about the success of the new Mobile Share plans, reporting 2 million subscribers opting for one of the plans in the first five weeks of availability and higher than anticipated uptake for higher-data plans than expected. They report a third of their Mobile Share customers are opting for plans with 10GB or more.

Breaking down the smartphone buyers a little more, AT&T indicates that of the 6.1 million devices sold during the quarter, 4.7 million were iPhones. They do report that 18% of those were new to AT&T, or about 850,000. It is not clear how many iPhone 5 devices were simply replacing older versions versus a customer moving to that platform from something else, but AT&T did indicate that Apple’s inventory constraints resulted in “the vast majority” of iPhone 5 devices going to existing customers. The remaining 1.4 million smartphone devices were other devices, but AT&T does indicate they had a “record sales quarter for Android and Windows smartphones.” Another point AT&T noted in their discussion is that more than 40% of their smartphone customers use a 4G-capable device.

source: AT&T

Premature earnings release causes Google stock price to nosedive

by Jeff Causey on
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Earlier today, Google’s quarterly earnings were accidentally released via a filing with the Securities & Exchange Commission. The premature filing appears to have been made in error by R.R. Donnelley & Sons Co., which is the company retained by Google to print its financial documents. As if the snafu involving the filing of unofficial documents was not enough, the results showed that Google’s profit declined by 20% amid rising costs and declining advertising revenues. This missed expectations and triggered a sell-off with Google share prices down 9% before trading was suspended. Once trading resumed at about 3:20 pm ET, it remained in that area and was down 8% at last report. » Read the rest

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