Intel have today reported a full-year revenue of an astounding $54 billion, with an operating income of $17.5 billion, net income of $12.9 billion, and EPS of $2.39. The thing associated with all of those huge numbers? They're all records. Intel had an amazing year in 2011.
Intel generated approximately $21 billion in cash from operations, paid dividends of $4.1 billion and used $14.1 billion to repurchase 642 million shares of stock. Q4 2011 saw Intel post a revenue of $13.9 billion, operating revenue of $4.6 billion, net income of $3.4 billion and EPS of 64 cents. Q1 2012 has been good so far, with their business outlook mentioning revenue sitting at $12.8 billion, plus or minus $500 billion.
Full-year 2012 details are interesting, with stand-outs like Research & Development (R&D) expected to hit $10.1 billion. With Intel heading into the smartphone market, that $10.1 billion could go a very long way. With their lead bulldozing the CPU competition, Intel don't really even need to release something that much faster to stay on top. But, if they slow down, it might give AMD enough time to catch up.
Eastman Kodak, the 133-year-old iconic American company that invented the handheld camera, have filed for Chapter 11 bankruptcy protection. After years of losing profits, and responding slowly to the ever-changing market, bankruptcy seems to be their only way out.
The move follows a long-term restructuring plan by chairman and CEO Antonio Perez, where since 2003, Kodak have closed 13 manufacturing plans, cut its worth force from 145,000 down to 17,000. 15 years ago, Kodak were valued at around $31 billion, its current value? Just $150 million.
Perez has said:
The Board of Directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak. Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers.
Amazon lose money on each Kindle Fire sold, as hardware and manufacturing costs of the Kindle Fire exceed its retail pricing, but somehow, Amazon aren't losing money on it. How does Amazon conduct this sorcery? Well, with every Kindle sold is another annuity revenue stream for the company, further strengthening its core retail business.
According to RBC, each Kindle Fire generates more than $100 in additional income, which makes up for the $2-$3 that Amazon make per device. RBC Capital analyst, Ross Sandler, said in research notes to clients:
Kindle Fire unit economics are likely to be more favorable than consensus expectations, based primarily on frequency of digital goods purchases. Our assumption is that Amazon could sell 3-4 million Kindle Fire units in Q4, and that those units are accretive to company-average operating margin within the first six months of ownership. Our analysis assigns a cumulative lifetime operating income per unit of $136, with a cumulative operating margin of over 20 percent.
Google had their turn just before, and now it's Redmond's turn. Microsoft have reported its second quarter 2012 earnings with record revenues of $20.9 billion, a 5-percent increase year-over-year. Microsoft's operating income, net income, and diluted earnings per share for the quarter were $7.99 billion, $6.62 billion, and $0.78 per share, respectively.
Compared to last years results of $8.17 billion, $6.63 billion and $0.77, respectively. The Online Services division, which includes Bing, lost another $458 million and Entertainment, where Xbox lives, as well as Windows operating profits, were also down. COO, Kevin Turner said in a release:
In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect. We are seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8.
Google have activated 250 million Android devices, seen 11 billion apps downloaded from the Android Market
Google had their earnings call a little earlier, where they revealed their growth and revenue for Q4 2011. On top of this, Google CEO Larry Page said that there have been more than 250 million Android-based devices activated worldwide.
On top of this insane number, more than 11 billion applications have been downloaded from the Android Market. Considering that back in October of 2011, Apple said they had sold 250 million iOS devices (which include the iPad and iPod Touch), this means that Google have caught up to Apple. Keep in mind that Apple have a two-year head start in the smartphone market.
Google have activated 50 million devices since its last earnings report back in October 2011. It'll be interesting to see where these numbers sit at this time next year, Google have so many handset makers wanting to one-up each other, where Apple just slowly release their products. I think Google will really overtake Apple within 6 months, within 12 months we should see a nice lead.
Google have released some financial results that might interest some, with Q4 011 and fiscal year ending December 31, 2011 being released. CEO of Google, Larry Page, says:
Google had a really strong quarter ending a great year. Full year revenue was up 29%, and our quarterly revenue blew past the $10 billion mark for the first time. I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally - well over double what I announced just three months ago. By building a meaningful relationship with our users through Google+ we will create amazing experiences across our services. I'm very excited about what we can do in 2012 - there are tremendous opportunities to help users and grow our business.
$10 billion revenue for Q4 is very impressive, up 29-percent. Google reported revenues of $10.58 billion for the quarter ending December 31, 2011, an increase of 25-percent when compared to the same quarter in 2010. Google-owned sites generated revenues of $7.29 billion, or 69-percent of total revenues. This is an increase of 15-percent year-over-year. Google's partner sites generated revenues of $2.88 billion, or 27-percent of revenues. This too is a 15-percent increase year-over-year.
International revenues made outside of the United States came to a total of $5.6 billion, representing 53-percent of total revenues for Q4 2011, compared to 55-percent in the third quarter of 2011, and 52-percent from Q4 2010.
Bit of a mix-up for the news today. The SOPA protests are on today, and have been for quite a few hours now, with Wikipedia, Google, Reddit and other sites all either showing a protest, or completely going dark for 24 hours.
The protest is of course in regards to SOPA, the Stop Online Piracy Act which Congress were debating. On top of this, there is PIPA, the Protect IP Act. Today marks a big day for not only the Internet, but you, me, and everyone in between. If SOPA is to get in, it is more or less the end of the Internet as we know it. It would still exist, but it would be heavily modified. Think of it like, if the Internet servers were in two places, North Korea and China, with a huge firewall, and if the dummies in Congress were the managers, and the MPAA gave out some requirements.
Yes, that's a little over-exaggeration, but it's pretty close. This news is just a "we here at TweakTown oppose SOPA/PIPA and any other stupid bill Congress want to push upon the people", and a bit of a tip in case anyone has missed previous news posts in regards to SOPA and PIPA on our site.
Nielsen have just posted their latest figures on smartphone sales in the U.S. and it shows that Apple's latest iPhone 4S helped claw back some much needed ground against the constant onslaught of Android-powered phones. In the last three months of 2011, roughly 45-percent of U.S. shoppers who purchased a new smartphone, chose an iPhone.
This is up 25-percent from the previous quarter. Android sales were 47-percent, down from a smackdown of 62-percent in the previous quarter. Apple's sales numbers were slipping as people were waiting for the new iPhone to launch, where Google were seeing strong sales thanks to Samsung's Galaxy S II. Apple also dropped pricing on the 3GS to zero up-front when purchase on contract, and introduced an 8GB iPhone 4 for just $100.
RIM's BlackBerry is still here, taking third spot, but seeing its share drop from 7.7-percent to just 4.5-percent in Q4 2011. This is quite worrying as RIM just released the Bold, Curve and Torch models.
Symantec has acquired archiving company LifeOffice, in a deal worth $115 million. Symantec increases its cloud-computing power to fight the battle and be more of an on-premise and software as a service (SaaS) company. Most traditional enterprise-software companies are scooping up cloud-based companies, with SAP purchasing SuccessFactors, and Oracle taking RightNow.
Symantec said in a statement that it will use LiveOffice to bolster its information-governance unit, as LiveOffice provides a cloud-based archiving system. LiveOffice and Symantec were partners before the deal, which it has now fused into one.
Research in Motion, which I'm sure you are aware are popular for their BlackBerry devices, have been going through some rough times lately. I'm sure virtually everyone working at RIM hate Apple and Google for coming in and creating something which took off quickly, and continues to grow at unprecedented rates. I'm talking of iOS and Android-powered devices.
RIM have slowly been sinking and it's been reported that they are eyeing off every single option they can think of, "in an effort to reverse a negative trend that is approaching a boiling point for investors," says BGR. RIM have reportedly favored an all-out purchase of one or more divisions, or even the entire company. RIM want Samsung to do it, but just after the story went to air, Samsung denied it.
Samsung didn't just slap RIM and walk away, as they are considering licensing RIM's software, or purchasing a portion of RIM's assets. This is better than nothing for RIM.
[Update: Changed the title, now less confusing.] When you visit Google tomorrow, and let's face it, we know you will, you'll see that they will have posted a link on their home page notifying users of Google's opposition to the controversial anti-piracy bills being thrown around like candy in Congress.
Google confirmed in a statement that they will join other popular sites such as Reddit, and Wikipedia, as well as other influential tech sites in staging protests of varying kinds against the Stop Online Piracy Act (SOPA, and Protect IP Act (PIPA) which are (of course) backed by big entertainment and media interests.
A Google representative has said:
Like many businesses, entrepreneurs, and Web users, we oppose these bills because there are smart, targeted ways to shut down foreign rogue Web sites without asking American companies to censor the Internet. So tomorrow we will be joining many other tech companies to highlight this issue on our U.S. home page.
Apple is at it, again - files design suit against Samsung in Germany, wants to ban 10 Samsung smartphones
Apple is at it again, this time it has filed another suit in Germany, where they seek to ban sales of various Samsung smartphones, including the Galaxy S Plus and S II. The suit was filed in the Dusseldorf Regional Court, and is based from Apple design rights in Europe, according to a phone call Bloomberg had with court spokesman Peter Schuetz.
Apple didn't stop there, they've also launched a separate suit against five different Samsung tablet computer models related to a September ruling banning the Galaxy Tab 10.1. Last month, the Dusseldorf court said that it is unlikely to grant an injunction against the Galaxy 10.1N and an appeals court also gave doubts about the reach of Apple's European Union design right that won the company the injunction against the Galaxy 10.1.
The new suits aren't filed under emergency proceedings, and allow Apple a new procedure against both models. Apple did initially win with their successful September injunction, but have since then, hit roadblocks against Samsung. Back in December, Apple failed to convince an Australian court to reinstate a ban of the Galaxy Tab 10.1 in Australia.
Samsung is looking to issue its first overseas bonds since 1997 in a move to expand the production of processors used in mobile devices such as Apple's iPhone. Samsung have sent requests for proposals to banks to borrow as much as $1 billion in order to expand production capacity at it's Austin, Texas-based plant.
Samsung joins cash-rich technology companies such as Google, by entering the bond market as borrowing costs plummet. It's cheaper for Samsung to raise funds to meet surging smartphone demand than go into their own pocket, where they have nearly $20 billion in cash.
Samsung are also planning to increase investment in 2012 to boost production of not just mobile chips, but next-generation OLED (organic light-emitting diode) display panels. No detailed investment plans for 2012 have been stated by Samsung.
The expansion should be a great thing for Texas, and America as a whole. Creating jobs in a struggling economy, and a struggling country.
SOPA may have been stalled, but the fight is not over, yet. Wikipedia have announced that they are joining in on the Black Out protest which is scheduled for January 18, just mere hours away.
Wikipedia founder, Jimmy Wales, made the announcement through Twitter today, saying that Wikipedia will be unavailable for 24 hours beginning midnight EST of January 18 (4pm AEDT). Instead of Wiki entries, users will get to the site, and get redirected to a page with a banner saying "The Internet Must Remain Free".
Wikipedia is just one of a number of sites that will suspend operations on January 18, these sites include Minecraft, Reddit, Major League Gaming and the entire Cheezburger network. These black outs and protests are to raise awareness for SOPA and PIPE bills. Hopefully this begins to catapult SOPA and PIPA into the mainstream, and the House drops it. Let's hope they don't rename it, add some spice and throw it in with another bill without anyone knowing. It's not like they would be capable of doing that, again.
THQ have had a rough couple of years, its share price five years ago sat very pretty at $33.73, and in 2011, dropped to just 66 cents. Operating costs also kicked them, hard. They used a significant chunk of their cash closing down two Australian studios, costing nearly $40 million total.
Out of that $40 million, $4.4 million of it went to severance packages and other wage-related issues. $17.5 million of it was spent on costs related to the "cancellation of two unannounced titles in development" at THQ Studios Australia and Blue Tongue. But, we're not finished yet.
THQ paid a flat fee for a license for The Avengers, where THQ had to just write off after the cancellation of the game that was in development at THQ Studios Australia. What did it cost THQ for that? A cool $16 million. Thrown away, burnt, just washed their hands with it. For $16 million already spent on The Avengers game, I'd like to know how it made financial sense to can development of a game already in development.
Entourage fan? If not, the title means nothing to you. YouTube it! Big news, SOPA has been stalled everyone, stalled! It was stalled due to a lack of 'consensus'. A lack of consensus with something so big going through Congress. Who would've thought!
The backlash from the Internet community with sites like Reddit against it, and the boycotting of companies that supported it like GoDaddy, have helped to force the pathetic bill to be stalled. On Saturday, the House Oversight Chariman, Darrell Issa (R-Calif.) was promised by Majority Leader, Eric Cantor (R-Va.) that the House won't vote on the controversial Stop Online Piracy Act (SOPA) unless there is a consensus on the bill.
Issa said in a statement:
While I remain concerned about Senate action on the Protect IP Act, I am confident that flawed legislation will not be taken up by this House. Majority Leader Cantor has assured me that we will continue to work to address outstanding concerns and work to build consensus prior to any anti-piracy legislation coming before the House for a vote.
Just after iiNet scooped up Internode, we now have a Telstra communication to their staff, where they seem to be informing their employees that TPG could buy iiNet, which would see TPG jump into second position among Australian ISP's.
TPG already owns 7-percent of iiNet, so if TPG were to takeover iiNet, it shouldn't be a surprise. The exact words from Telstra, as provided from Delimiter:
"iiNet's $105 million acquisition of Internode, announced just prior to Christmas, will see it gain 190,000 subscribers, and spearhead TPG Telecom into third place among broadband providers behind Telstra and Optus," the company's update read. "In recent months, TPG Telecom has been building a stake in iiNet, which, according to market speculation, could be a precursor to a full takeover."
Microsoft has shown its strength just now, with the Xbox taking in nearly half of all consumer spending from physical sales in 2011. Roughly $6.7 billion, or 40-percent of consumer retail spending, was spent on the Xbox, breaking into two separate categories. $2.1 billion on consoles, and $4.6 billion on games, according to NPD data released today.
These figures take into account U.S. retail sales of new physical videogame content, inclusive of portable and console hardware, games and accessories. In the collective sectors, they generated revenues of $17.02 billion last year, an 8-percent decline from 2010's $18.6 billion in generated revenues. Out of that $17.02 billion, Microsoft took a very respectable 40-percent of those sales.
The report doesn't include sales from digital formats, with things like downloadable content, social and mobile games, used and rental sales. Those so-called "newer" categories generated $7.24 billion in revenues last year, an increase of 7-percent over 2010. Whilst the increase in spending on alternative formats was there, it wasn't enough to offset the declines in physical retail. Consumer spending across both categories was between $16.3 and $16.6 billion, falling 2-percent from last year.
eBay and Amazon forecasts for mobile commerce volume in 2012, $8 billion and $7 billion, respectively
CES 2012: eBay CEO (and new interim PayPal CEO) John Donahoe, revealed at his CES keynote yesterday a number of new mobile payments forecasts for not only eBay, but PayPal, too. PayPal VP David Marcus said a few days ago that PayPal had surpassed its expectation of $3.5 billion in mobile payments in 2011, reaching $4 billion for 2011.
Donahoe said in his CEO keynote that eBay reached $5 billion in mobile GMV (gross merchandise volume), this is a 100-percent jump on 2010's GMV. Donahoe also projected yesterday that eBay would reach $8 billion in mobile GMV in 2012, with PayPal reaching $7 billion in transactions in 2012.
Mobile has more than 65 million downloads of eBay's mobile applications across all platforms. More than 890,000 new eBay shoppers completed their very first eBay purchase via the mobile apps in 2011, an 113-percent increase year-over-year. Donahoe also announced a new strategic partner in eBay's RedLaser barcode scanning app, who is it? Well, it's Best Buy. The app was updated last fall to include integration from PayPal and Milo to give users the ability to buy now for either in-store pick-up, or home delivery later.
Best Buy joins Toys R Us as RedLaser's latest partner.
Nokia. Microsoft. Windows Phone. 2012. This is all you need to know if you want to believe the numbers Morgan Stanley expect Nokia to ship this year, based on Windows Phone devices alone. They expect Nokia's new Windows Phones to sell 37 million units this year, with that number ballooning to 64 million units next year.
Morgan Stanley's estimates for HTC's Windows Phone-based handsets is actually quite the number, too. They estimate 43 million this year and 74 million next year. Considering these are just estimates, I can't see it happening, but Nokia and HTC are two powerhouse companies, so who knows. I just see iOS and Android fighting them too much to sell phones in those types of numbers.
Microsoft have a lot of work cut out for them this year, but they seem to be in their stride now. It should be interesting to see what they do this year against Android 4.0 and if there's a release of iOS 6 sometime later this year. We should see great things from all three companies.
Microsoft has clamped down its plans to launch an online subscription service for TV shows and movies, according to a report from Reuters. Microsoft were deep in discussion with potential programming partners for over 12 months now, and were, up until recently, planning to launch the service in the upcoming months.
They have done a 180-degree turn on that decision, after deciding that the licensing costs were too high for the business model they envisaged, according to people "familiar with the discussions". One senior media executive who was involved in these talks, said:
They built Microsoft TV, they demoed it for us, they asked for rate cards but then said 'ooh ah, that's expensive.'
Early versions of the service included the same Kinect-based features such as voice and motion control to change channels, and more. Similar to Netflix, Microsoft's service would've allowed a monthly fee for a package of programming from someone other than your local cable or satellite TV company. Being different to Netflix, Microsoft hoped to offer current TV shows and live networks on their service, which made it a much higher cost proposition.