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Today, Apple announced its financial results for the third quarter of 2013. The report says that Apple managed to post a revenue of $35.3 billion with a net profit of $6.9 billion, which equates to $7.47 per diluted share. This means that Apple's profit is down by nearly $2 billion over the same quarter in 2012. The company said that international sales accounted for 57 percent of the quarter's revenue.
The Cupertino based company sold 31.2 million iPhones during the third quarter alongside 14.6 million iPads and 3.8 million Macs. Overall, only the iPhone sales were up as during the same quarter last year Apple managed to sell 17 million iPads and 4 million Macs. The company's Board of Directors declared a cash dividend of $3.05 per share of the company's common stock which will be payable on August 15, 2013 to all shareholders who own stock before the close of business on August 12, 2013.
"We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services," said Tim Cook, Apple's CEO. "We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014."
"We generated $7.8 billion in cash flow from operations during the quarter and are pleased to have returned $18.8 billion in cash to shareholders through dividends and share repurchases," added Peter Oppenheimer, Apple's CFO.
Electronic Arts post Q1 2014 financial report, things looking fairly solid for the game publishing giant
EA released its earnings report for Q1 of the fiscal year 2014 today, and the numbers are looking pretty good for the game publishing powerhouse. The company posted a total net revenue of $949 million, which was down about $6 million from the same quarter in 2012. EA said that their gross profit was up $5 million from the previous year at $755 million. Additionally, the company had total operating expenses of $522 million, which brought their net income to $222 million, up $1 million from Q1 of 2012.
"EA had a solid quarter driven by continued digital growth and disciplined cost management," said Executive Chairman Larry Probst. "We are also executing on a clear set of goals for leadership on mobile, PC, current and next generation consoles."
"EA delivered first quarter EPS above our guidance through a combination of revenue growth, phasing of expenses, and cost control," said Chief Financial Officer Blake Jorgensen. "We are reaffirming our annual non-GAAP guidance of $4 billion net revenue and $1.20 earnings per share."
We've seen PC sales stumbling, with so many parts of the machine being blamed - Windows 8, manufacturers, smartphones, the GFC, and more. But, it looks like Apple's Mac business has hit a little bit of a snag, too.
AppleInsider have some numbers from research firm NPD, which forecasts a 5% drop in Mac sales for Q2 2013. The same data has Piper Jaffray analyst, Gene Munster, saying that Mac sales dropped around 5% in the US, and 5% across the world compared to the same quarter of 2012. June was a bad month for Apple, where Mac sales dropped by a staggering 12%.
If NPD's data is correct, this is the third consecutive quarter in a row for stumbling Mac sales. In Q1 2013, Apple saw a 1.7% year-over-year decline in sales, and in Q4 2012, Apple saw a 21% reduction in Mac shipments.
Newlyweds to begin 'Life on Bitcoin' documentary, will live on the digital currency exclusively for three months in the US
I still haven't gotten into Bitcoin myself, mainly because I live in a country that is behind in technology: Australia. But, a couple will be living in Utah after spending ten days on a tropical honeymoon in Costa Rica, purely on Bitcoin.
It's a tough challenge, a pure 90-day challenge dubbed "Married... With Bitcoin." Austin Craig and Beccy Bingham have a tough road ahead of them, with Craig saying to Forbes during an interview: "The goal is to find out how developed the Bitcoin ecosystem is, what needs to change, and how easy it is to use, understand, and explain."
The three-month challenge is being documented in a number of ways - Facebook, Twitter, blogging and YouTube clips as well as a documentary called "Life on Bitcoin." They announced their plans last month on crowdfunding site Kickstarter, where they raised over $72,000 as well as 82 Bitcoins, which are valued at the current valuation of $7,000 or so.
We reported back in October of last year that Telstra were to acquire SA-based ISP, Adam Internet. Well, it looks like the buyout has been vetoed after the parties failed yet again to receive approval from the Australian Competition and Consumer Commission (ACCC).
The ACCC had been working toward making a decision on the acquisition by February 7, but Telstra asked for a suspension of the request for two weeks. iiNet, Macquirie Telecom and Vodafone Hutchinson Australia had been on the ACCC's back to reject the buyout. Telstra's chief customer service officer, Gordon Ballantyne, has said that "in the end, [Telstra] had not been able to secure approval from the ACCC by the contractual end date."
He added: "we are very disappointed by this outcome." Adam Internet's Executive Chairman, Greg Hicks, has called the situation "unfortunate". Hicks continued: "[We are] disappointed this important condition precedent could not be achieved in a commercially acceptable time frame, and therefore we will no longer be proceeding."
On Friday, HTC released its earnings report for the second quarter of 2013 and things did not look well for the company. The numbers show that profit took a nosedive during the second quarter and fell approximately 83 percent, while revenue declined 22 percent. These are usually numbers that indicate a company is heading for a hard and unfortunate brick wall. Fortunately, HTC recognizes this and has decided to reorganize its entire US operations.
This morning, the Wall Street Journal is reporting that they have obtained an internal memo that unveils how the reorganization will go. President of Global Sales, Jason Mackenzie, will now head up all of US operations and former U.S. Boss Mike Woodward will now lead a new specialized unit dubbed "Emerging Devices" that will focus on innovating new HTC products and global distribution strategies.
"I want to thank these two outstanding leaders for their contributions to the success of the HTC One so far," Mr. Chou wrote about Mr. Mackenzie and Mr. Woodward. "But as you know and would expect, we also need to do more. With the success of the One, we have many new opportunities both to expand current sales as well as to enter new distribution channels with new business models."
Apple have been having issues with their Maps application ever since iOS 6 arrived, and they've been doing as much as they can to sort these issues out. Their latest step is acquiring online transit navigation service, HotStop.com.
According to people familiar with the matter, Apple want to "scale back their relationship with Google". This is of course known, as Apple dropped Google as their navigation source in iOS 6, one of their bigger mistakes of the last couple of years. A nice fact is that Google Maps is the most popular free app on Apple's App Store, so that's saying something.
As a daily user of Spotify, I'm loving streaming music services and it looks like many millions of others are, too. According to figures released by Billboard and Nielsen, a 4.6% decline in overall album and track sales in the first half of 2013.
Digital download sales dropped 2.3% while physical CDs fell by a huge 14%. During the same time, streaming music jumped by 24%. The company that will most likely hurt from this the most in the long run will be Apple, who are all-digital with iTunes. Streaming services like Pandora and Spotify offer their music with an all-you-can-eat model, which is free.
If you don't like the restrictions of the free model, there's various premium models on offer, too. Spotify is only $10 a month for unlimited music, which is an amazing deal. This is what I pay for each month, and for less than half the cost of a physical album, why wouldn't any music listener do this?
Microsoft's Surface RT tablet sees the company with a $900 million write-down for the poor performing tablet
It looks like Microsoft haven't had a good run with their Surface RT tablets according to their quarterly and full-year financial results. Microsoft have just finished their fourth financial quarter, where they saw revenues of $19.9 billion and an operating profit of just over $6 billion for the three-month period.
Just how bad was the Surface RT for Microsoft? Well, the Redmond-based giant included a $900 million write-down to pay for the slate, that's how bad. In the first paragraph of their latest financial report, Microsoft says: "These financial results include a $900 million charge, or a $0.07 per share impact, related to Surface RT inventory adjustments."
Microsoft really missed the mark when it came to predicting consumers' purchasing habits on the Surface RT, with many estimating that Microsoft made as many as six million Surface RT's. Obviously a bunch of these didn't sell, at all, but according to Brian Hall, the General Manager of Surface marketing, "Microsoft is 100 percent committed to Surface RT and Windows RT going forward and has no plans to drop work on either product."
We have reported previously about big tech companies such as Google and Apple who dodge huge amounts in tax, but now the Organization for Economic Cooperation and Development (OECD) are going to put a stop to this, and quick.
Bloomberg are reporting that the OECD will pump the brakes on corporate tax dodging, with a plan that will "develop rules over the next two years preventing companies from escaping taxes by putting patent rights into shell companies, taking interest deductions in one country without reporting taxable profit in another, and forcing them to disclose to regulators where they report their income around the world."