It might have been the shortest month of the year, but Google still managed to deliver a record amount of video ads, finds comScore in its latest Video Metrix data. Google Sites served 2.2 billion online video ads, ahead of BrightRoll (1.6 billion) and 3 other properties that exceeded the 1 billion mark. For the [...]
Apple, if it were just a media company, would be pretty fearsome. Its iTunes business is on pace to do $8 billion in annual revenues.
But, fund manager Eric Jackson at Forbes noted something interesting about iTunes this quarter. It was flat on a sequential basis, despite the fact that Apple added 75 million new iOS devices. iTunes revenue was $2.1 billion.
Over the last four quarters iTunes revenue is basically flat going from $1.9 billion to $2.1 billion. Meanwhile, iOS devices have gone from 365 million to 529 million, a significant jump. Pulling further back, as we did in this chart, over the last 11 quarters, iOS devices are up 5.3X, while iTunes is only up 2X.
Why is iTunes sputtering relative to iOS? We assume part of it is Apple’s international iOS growth where iTunes items like songs and movies aren’t available. We also assume services like Netflix and Spotify are cutting into iTunes sales.
What this means for Apple is unclear. But a big part of Apple’s strength is its ecosystem. Part of that ecosystem is music, movies, and apps bought through iTunes. If people are buying fewer movies and less music, they will be less locked in to Apple’s platform.
In the quarter ending June 2011, Apple spent less than $1 billion on property, plants, and equipment.
By March 2012, the number had spiked beyond $2 billion, beyond $3 billion, and approached $4 billion.
Here’s a chart he made to show what the spike looks like so far:
Here’s the the interesting part about all this massive spending.
No one outside of Apple knows where it’s going.
“The capital is being deployed almost silently and, though vast in scale, barely gets a mention from analysts,” writes Dediu. “Not even a single question has been raised at any earnings call about this spending.”
His theory is that Apple, which prefers an “integrated” approach in everything it does, will soon make more of the components inside its gadgets, like chips.
That would explain why Apple has been so busy hiring former Texas Instruments employees, for example.
The truth is, Apple is a very secret company and it doesn’t have to say, specifically, where it’s spending that money.
For all we know, it could be building TV set factories.
One thing one know for sure is the Apple is always working on products that would cannibalize its current lineup.
Maybe Apple is investing billions in a product that could kill the iPhone, like computerized glasses.
Red Hat announced $1.13 billion in annual revenue, up 25 percent from a year ago.
This officially marks the first time a company that makes 100% of its living from open source products topped the billion-dollar mark.
For the quarter ending February 29, Red Hat posted revenue of $297 million, up 21% year-over-year, and GAAP EPS of 18 cents, up 6%. Its quarterly non-GAAP EPS was 29 cents, up 12% from last year.
Analysts, on average, expected earnings of 27 cents per share on revenue of $291.2 million.
Shares are up over 7% to about $55 in after hours trading.
- The Secret to Red Hat’s Billion-Dollar Success: Everyone’s The Boss
- Red Hat Rubs Its Billion-Dollar Year In Bill Gates’ Face
- Cisco Is Back: Beats Expectations And Stock Jumps
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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