q3

Only Three Smartphone Companies Are Profitable (AAPL, GOOG, MSFT)

Source: http://www.businessinsider.com/only-three-smartphone-companies-are-profitable-2012-11

smartphone profit share

Interesting tweet from analyst Horace Dediu, “Apple’s share of operating profits from global mobile phones dropped to 60% in Q3. Samsung now at 39% HTC 1%. No other companies profitable.”

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?

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Wednesday, November 14th, 2012 news No Comments

tablet shipments up 6.7 percent in Q3 2012, Apple’s market share drops to 50.4 percent

Source: http://www.engadget.com/2012/11/05/idc-tablet-shipments-Q3-2012/

IDC: tablet shipments up 6.7 percent in Q3 2012, Apple's market share drops to 50.4 percent

Samsung may dominate Apple in smartphone market share, but the opposite is true for tablets. Third quarter figures from IDC suggest the tablet market grew by 6.7 percent during those three months, and 49.5 percent since the same period last year. Apple was responsible for over half of the 27.8 million shipments worldwide, but lost a significant amount of market share, dropping to 50.4 percent from 65.5 percent in the second quarter. IDC attributes this to consumers holding off for the iPad mini, but expects some of these procrastinators will choose Android tablets due to the relatively high entry price of $329 for the mini. Samsung was second on the leaderboard, shipping over five million tablets and increasing its market share to 18.4 percent, mainly driven by Galaxy Tab and Note 10.1 sales. Amazon and ASUS also had a solid quarter thanks to the Kindle Fires and Nexus 7, respectively, shipping around 2.5 million tablets a piece. Lenovo’s presence in China meant it closed out the top five, with modest growth from the same period last year. Apple may still be the biggest player in the tablet market thanks to the iPad brand, b! ut with the significant decline in market share this quarter, it seems IDC’s predictions might slowly be coming true.

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IDC: tablet shipments up 6.7 percent in Q3 2012, Apple’s market share drops to 50.4 percent originally appeared on Engadget on Mon, 05 Nov 2012 03:27:00 EDT. Please see our terms for use of feeds.

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Monday, November 5th, 2012 Uncategorized No Comments

Android claims 75 percent of smartphone shipments in Q3, 136 million handsets sold

Source: http://www.engadget.com/2012/11/01/android-75-percent-marketshare-136-million-shipped/

IDC: Android claims 75 percent of smartphone shipments in Q3, 136 million handsets sold

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.

Continue reading IDC: Android claims 75 percent of smartphone shipments in Q3, 136 million handsets sold

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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.

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Friday, November 2nd, 2012 Uncategorized No Comments

Here’s The REAL Error Rate For ‘Fat Finger’ Clicks

Source: http://www.businessinsider.com/error-rate-for-mobile-ad-fat-finger-clicks-2012-10

3d iphone

Up to 50% of the impressions served on a static mobile banner ads are from accidental clicks or “fat finger” taps, according to GoldSpot Media‘s “Fat Finger Report.”

Accidental clicks or “fat finger” clicks are taps on mobile banner ads that happen after less than two seconds of engagement. That is, if a user closes the app or website within two seconds of clicking the ad then it is considered accidental.

GoldSpot Media, a digital ad management platform for online and mobile advertising, aggregated this data by analyzing millions of static and rich media banner impressions for campaigns delivered in Q3 2012, which used the GoldSpot ad platform.

GoldSpot also found that “fat fingers” are three times more likely to accidentally tap static banner ads than they are to click rich media banners. This is because static banner ads “appear to be part of the content, and may be tapped by the user unintentionally.” Whereas the 3D and animated qualities of Rich media are easier to differentiate from the app or website content.

Accidental Clicks on Rich Media Banner Ads vs. Static Banner Ads

Accidental Clicks on Mobile Ads

 

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Friday, October 26th, 2012 news No Comments

2 million more streaming subscribers worldwide, $8 million net income

Source: http://www.engadget.com/2012/10/23/netflix-announces-q3-2012-earnings-two-million-more-subscribers/

Netflix saw a return to profitability and more than half a million new US subscribers in the second quarter of this year, and it’s now announced that it’s added a full two million more streaming members worldwide for the third quarter. That brings the company’s global base of streaming subscribers to 29 million, 25.1 million of which are in the US. It’s also announced another bump in profits to $8 million in net income, with global revenue of $905 million. It’s unsurprisingly a different story when it comes to DVD subscriptions in the US, however, with the company reporting a drop from 9.24 million total subscribers in Q2 to 8.61 million in Q3.

In terms of usage, Netflix says that its streaming members have now consumed over three billion hours of content, and that TV shows now account for about two thirds of that viewing activity. The company has also reiterated its commitment to original programming in its letter to shareholders, although it notes that commitment comes with some front-loaded expenses that will result in negative free cash flow for the next “several quarters” beginning with Q4. The company further adds that it believes “investment in originals is wise, and we will evaluate the performance of the slate next year to determine at what level we should fund additional original.” You can find the full letter and all the numbers at the source link below.

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Netflix Q3 2012 earnings: 2 million more streaming subscribers worldwide, $8 million net income originally appeared on Engadget on Tue, 23 Oct 2! 012 16:1 0:00 EDT. Please see our terms for use of feeds.

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Tuesday, October 23rd, 2012 news No Comments

Facebook posts $59 million net loss in fiscal Q3, touts 1.01 billion active users

Source: http://www.engadget.com/2012/10/23/facebook-posts-59-million-loss-in-fiscal-q3/

Facebook Mark Zuckerberg

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.

Continue reading Facebook posts $59 million net loss in fiscal Q3, touts 1.01 billion active users

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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.

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Tuesday, October 23rd, 2012 news No Comments

Google PLAs Offer 25% Higher Return On Spend Than Text Search Ads

Source: http://feeds.marketingcharts.com/~r/marketingcharts/~3/YS2HOphGcx0/

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 […]

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Tuesday, October 16th, 2012 news No Comments

What Square’s Starbucks Deal Might Look Like

Source: https://intelligence.businessinsider.com/welcome

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.  

Square Starbucks     

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Wednesday, August 8th, 2012 news No Comments

AT&T reports ‘blow-out’ Q4, revenues up 3.6 percent, 7.6 million iPhones activated

Source: http://www.engadget.com/2012/01/26/atandt-q4-2011-revenues-up-3-6-percent-7-6-million/

AT&T is all smiles again, as it announces a quarter in which it managed to sell 9.4 million smartphones. It nearly doubled handset sales from Q3 and managed — perhaps unsurprisingly — 7.6 million iPhone activations, with the majority being Apple’s latest flavor of phone. It looks like the loss of its exclusivity tag hasn’t hurt its sales, with Ma Bell quick to note that it sold far more iPhones than its Big Red rival. Total consolidated revenues were up $1.1 billion from last year, that’s a 3.6 percent increase and it’s up just over $1 billion from last quarter. However, due to the failed T-Mobile acquisition (and the subsequent pay-off) net income was a loss of $6.7 billion, with $4.2 billion of this going to its previously potential partner. Aside from bumper smartphone sales, AT&T’s attributed its revenue increases to a year-on-year increase in wireless subscriptions in all their forms — including wireless internet. An additional 208,000 AT&T U-verse TV subscribers has tipped the viewer count to 3.8 million. See AT&T’s own take on its results below.

Continue reading AT&T reports ‘blow-out’ Q4, revenues up 3.6 percent, 7.6 million iPhones activated

AT&T reports ‘blow-out’ Q4, revenues up 3.6 percent, 7.6 million iPhones activated originally appeared on p://www.engadget.com“>Engadget on Thu, 26 Jan 2012 08:07:00 EDT. Please see our terms for use of feeds.

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Thursday, January 26th, 2012 news No Comments

Will Groupon Thrive Or Tank In Q4? This Chart Holds The Key (GRPN)

Source: http://www.businessinsider.com/this-chart-tells-you-whether-groupon-will-thrive-or-tank-in-q4-2011-12


groupon girl

Groupon’s Q4 2011 couldn’t be more crucial: Will it see the revenue bump it needs from holiday shoppers to justify its business model? Or will sales collapse following CEO Andrew Mason’s promised pullback on marketing and customer acquisition spending?

The Wall Street Journal reports that gross billings at the company rose just 1.5 percent from September to October, and not 22 percent as previously estimated.

Has the company reached a plateau before falling of a cliff? Or is it merely taking a pre-Thanksgiving breather before continuing its climb up the Christmas sales ladder?

The company could go either way. Until recently, the company has been dependent on a cash float (and the money it raised in its IPO, of course) to stay in business. Groupon generally makes a loss each quarter. It funds its operations by taking revenues from customers’ credit cards immediately and then delaying for 30 days or so the share of those sales it owes to the merchants who made the offers. As long as there is a greater amount of new money coming in than old money owed, Groupon continues to function.

But what happens if Groupon enters a period in which its revenues decline? At most companies that isn’t too problematic — management can cut expenses to remain profitable. But at Groupon the company’s marketing and customer acquisition expenses are closely related to its revenues. It is not at all clear whether Groupon’s revenues will continue to rise if Mason cuts costs. ! Here’s a chart showing Groupon’s net revenues plotted against its total operating expenses:

groupon

As you can see, in Q3 Mason pulled back on expenses (the green line) in hopes of seeing a profit, but revenue growth (the red line) began to lose steam. The WSJ report suggests it hasn’t regained momentum since, but the October sales period doesn’t include the Christmas run-up.

In Q4, this chart is all you will need to understand whether Groupon can mature into a business that isn’t funded by stock sales. If Mason can get the red line above the green line, or if he can keep the red line moving upward, then he should be congratulated.

If he cannot, then the company — and its investors — will need to do some serious thinking about whether their daily deal business model is viable or not.

SEE ALSO: Groupon Allegedly Hacked Merchant’s Email To Alter Contract

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Monday, December 12th, 2011 news No Comments

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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