A couple of thoughts on this:
- How is this sustainable for all the other phone makers? What happens to Motorola, RIM, Nokia, LG, et al.? Do they go away?
- If they go under what happens to Android? If you’re wondering why Google is trying to save Motorola, this could be a clue. It doesn’t want to be held hostage by Samsung, the only smartphone maker that’s profitable.
- What happens to Windows Phone? If Nokia continues to lose money and market share, and HTC is just barely profitable, what happens to Microsoft’s mobile efforts?
- Is this really a business Microsoft wants to enter? Microsoft is reportedly thinking about doing its own smartphone. Does it really think it can make money like Apple and Samsung, companies with years of manufacturing expertise?
Android devices already counted for a lion’s share of phones shipped during Q2, and now fresh IDC figures show Google’s OS claiming the top spot with a hefty 75 percent marketshare in the third quarter. In total, 136 million Android handsets were shipped during the time frame, a new record in a single quarter. Even with the help of new hardware, iOS lagged behind in second place with a 14.9 percent stake of handsets. Both Blackberry and Symbian clung to their respective 3rd and 4th place spots, making up 6.6 percent of total shipments. Windows-based phones (both WP7 and Windows Mobile) fell to 2 percent, keeping Microsoft in fifth place just above smartphones running Linux. However, with Windows Phone 8 devices making their debut, we wouldn’t be surprised to see Redmond’s numbers get a boost when IDC’s next report rolls around.
IDC: Android claims 75 percent of smartphone shipment! s in Q3, 136 million handsets sold originally appeared on Engadget on Thu, 01 Nov 2012 22:30:00 EDT. Please see our terms for use of feeds.
The bloom is slightly off the rose for Facebook. After a banner first post-IPO quarter, it’s recording a net loss in its fiscal third quarter of $59 million despite its revenue climbing to $1.26 billion — a big swing that the company is blaming on payroll tax tweaks and income taxes, which becomes clearer when you learn that the company posted a $311 million profit before factoring in standard accounting practices. Facebook hasn’t said exactly what had the biggest impact, although its closing the Instagram deal wouldn’t have helped matters. Still, the company isn’t glum about its prospects: following an earlier mention of the milestone by founder Mark Zuckerberg, the earnings report touts that there are over 1.01 billion active Facebook users who check in at least once a month, over 604 million of which were mobile. Between a reworked iOS app, a freshened Facebook Messenger and new ad-friendly SDKs, the social network is bracing for a potential bonanza ahead.
Facebook posts $59 million net loss in fiscal Q3, touts 1.01 billion active users originally appeared on Engadget on Tue, 23 Oct 2012 16:32:00 EDT. Please see our terms for use of feeds.
US Google Product Listing Ads (PLAs) outperform text search ads in click-through rates by 47%, in conversion rates by 38%, and in return on ad spend (ROAS) by 25%, according to [download page] an October 2012 report from Kenshoo covering Q3 activity. The average ROAS among the select merchants examined was $3.96 from PLAs versus [...]
Square announced yesterday that it will handle all of Starbucks’s U.S. credit- and debit-card sales.
According to Yahoo Finance, analyst consensus for the calendar quarters ending September and December are $3.38 and $3.81 billion, respectively. This doesn’t quite align with Starbucks’ fiscal schedule, but we will assume revenue distribution is similar.
Historically, Starbucks generates about 75 percent of its revenue from the Americas. For the sake of simplicity, we’ll also assume Square is handling Starbucks’s Q3 sales even though the system probably won’t be rolled out for a while.
According to SAI’s Owen Thomas, 25 percent of its sales go through its prepaid Starbucks cards. His assumption of 50 percent credit card sales also seems fair to us.
Additionally, Square’s annualized run rate for transaction volume has organically been growing by $1 billion every other month. Square last announced they were handling transactions at a $6 billion-a-year rate in June. If this growth rate continues, Square will handle the annual equivalent of $7 billion this month, $8 billion in October, and $9 billion in December.
Combining the expected Starbucks sales and its organic growth, Square would be handling $28.6 million of payments a day at the end of the year at an annual run rate of $10.4 billion. With a 2.75% take of transactions, it would be generating revenues of $787,000 a day—for an annual revenue run rate of $287 million.
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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