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Even though LG is finally seeing some success with its smartphones, the South Korean company actually bled some money this quarter selling its handsets. LG posted its Q3 earnings, with a -2.6% operating margin.
The company shipped over 12 million handsets, which provided it with a nice $2.75 billion in mobile sales and an even better 24% year-over-year in mobile sales. LG says it is still losing money in its mobile division due to "increased competition and higher marketing investments." Looking into the future, LG says it "plans to focus on increasing sales of new premium products such as the LG G2 smartphone during the peak holiday season as well as maximizing 3G and mid-tier mass devices such as the L II Series and F Series."
While other companies seem to be struggling to post massive profits and keep their share prices high - I'm talking about Apple, folks - its biggest competitor has just posted another record high in operating profits.
Samsung has just posted its earnings for the Q3 period, with profits of $9.6 billion setting a new record high for the South Korean giant. The increased profits are thanks to its cheaper Galaxy smartphones, as well as profits from its memory side of things - such as Flash storage and RAM. Samsung has seen increased demand for its chips in the upcoming next-gen consoles, smartphones, servers, PCs and much more.
The company is seeing less profits on its TVs as prices continue to drop, but sales of its 60-inch and higher TVs are said to be growing.
Microsoft has been somewhat struggling with its Surface tablets, but that hasn't stopped the company from posting an impressive Q1 earnings report. From $18.5 billion in revenue, the Redmond-based giant took a nice $5.2 billion in net profits home.
The company pegs most of this success in the growth of its corporate-focused Commercial group. Unfortunately, the Devices and Consumer division isn't doing so well, with Windows revenue from PC makers down a sharp 7%, but search ad revenue climbed an impressive 47%. The Surface line of slates from Microsoft saw revenue increases quarter-over-quarter to $400 million.
With Windows 8.1 launching just recently, Microsoft has netted $113 million in pre-order revenue, which could see a surge in PC sales in the coming quarter. We're also set to see the Surface 2, Surface 2 Pro and Xbox One sales make a huge increase in revenue for the company in the coming months.
Two marketing firms representing Samsung have been caught red-handed hiring writers to post good reviews about its products while at the same time giving HTC products a bad review. This practice violates Taiwan Fair Trade Rules and has ended up costing the electronics giant $340,000 USD in fines from the Taiwanese government.
The two firms who were the actual offending parties have been fined more than $100,000 each themselves for their participation in the violation. This is not the first time something like this has happened either. Earlier this year, Samsung was caught up in a similar scandal where 3rd party firms were hiring developers to promote Samsung on StackOverflow.
We know HTC is experiencing issues, with one of those roads it could go down would result in the Taiwanese smartphone manufacturing shutting its doors. But according to the company, it won't be doing so.
HTC issued a statement, where it talked to Reuters and said it was "not shutting down or does it have plans to sell any of its factory assets." This doesn't mean that the company won't be selling itself in pieces to another company, which is where I think it is headed in the coming months.
Reuters even claimed that HTC had already shut down one of its four major production facilities, after one of its reports actually went there and found it abandoned. The Taiwanese manufacturer fired back stating it closed the factory because "like any manufacturer, we do volume planning to optimize our lines, our manufacturing and production facilities."
AT&T posted its Q3 earnings on Wednesday, with some impressive results. The US carrier saw $0.66 earnings per share over a consolidated revenue of a hefty $32.2 billion.
This means the carrier beat Wall Street expectations of $0.65 EPS. AT&T's Q3 results saw an addition of 363,000 more post-paid subscribers, including an additional 178,000 smartphone subscribers. Continued strong wireless performance helped AT&T increase its wireless revenues by 5.2% year-over-year from the same quarter of last year.
It looks like Samsung's Galaxy S4 has been super popular for the South Korean giant, with Samsung CEO JK Shin announcing that the flagship Android-powered smartphone from Samsung has sold over 40 million units.
Considering the Galaxy S4 launched just five months ago, this is a mammoth effort. At the two-month mark, there had been over 20 million Galaxy S4's sold, but now we're talking about double that. Considering the Galaxy S III sold 30 million units in its launch last year, this is a great jump. We should expect Samsung to break through the 50 million unit milestone before 2013 is wrapped up.
The makers of Gorilla Glass have just signed an agreement with Samsung to see the South Korean electronics giant secure a 7.4% stake in the company. Corning and Samsung have been involved in each others worlds for the past 40 or so years through equity investments, product development and commercialization initiatives.
The agreement will see Corning securing Samsung's 43% stake in their Samsung Corning Precision Materials joint venture for $1.9 billion, as well as minority investors for around $300 million. Samsung will slap down a $400 million investment in Corning, which would see them acquire 7.4% of the company at today's share prices.
We should expect the deal to close early next year, and will see the two sign a 10-year LCD display glass supply agreement that will add a hefty $2 billion to Corning's annual sales.
If you thought that Apple's Tim Cook, Microsoft's Steve Ballmer, or even Google's Larry Page held the top spot for highest paid CEO in North America, you are sadly mistaken. Today a report released by GMI Ratings shows that in fact, it is Facebook's Mark Zuckerberg who claims the #1 spot as highest paid CEO.
During the last fiscal year Zuckerberg received a total compensation of just over $2.28 billion, most of which came from share options when Facebook completed its IPO in which Zuckerberg exercised 60 million stock options that he was given in 2005 and vested in 2010. This landed him more than $2.7 billion in profit when the IPO launched at $38 per share.
If a new report is correct, BlackBerry's knight in shining armor could be coming out of the far east. A new report from Digital Trends is suggesting that Lenovo is seriously considering purchasing BlackBerry as a whole. This deal would provide Lenovo a cheap and easy entry point into the US smartphone market, something it has been eyeballing for sometime now.
While Fairfax Financial has experienced issues securing the $4.7 billion it would need to purchase the company, Lenovo would have no such issues and could offer up cash on very short notice. The only thing standing in the way of the deal would be BlackBerry's co-founders Mike Lazaridis and Douglas Fredin who are also considering buying the company. The Wall Street Journal has reported that Lenovo has signed a nondisclosure agreement that allows them to look at BlackBerry's books, so this offer could be more serious than originally thought.