During its earnings call with investors where Samsung announced a 31 percent drop for its profits in its mobile division, the company also slipped in a small announcement about upcoming smartphones to reassure investors going into the next quarter. As noted by The Wall Street Journal, Samsung executive Kim Hyun-Joon told investors that the company would launch a new model with a large screen and another that will be made with “new materials.” Read more
Following Samsung’s monster profits from yesterday, HTC has now released its unaudited results for Q2 2013 (via TechCrunch). The company reported total revenues of $2.35 billion (NT$70.7 billion) and profits of just $1.63 million (NT$1.25 billion). While the profit is up over the NT$85 million it reported in Q1 2013, it’s still lower than analysts expected and down 83% year over year.
Many were expecting HTC to have a good quarter, as its One flagship is finally available on three major United States carriers and the device was well-received by critics. Sales in May for HTC were up 48.03%, but things nose dived in June, falling 23.88% month-on-month and 26.43% year-on-year.
HTC had hoped that a unified line-up of devices could help it better compete with Samsung, who posted over $8 billion in profit for Q2, but it looks like the struggles for the Taiwanese company are deeper than we thought. Read more
Samsung has released its estimated earnings for Q2 2013, with a full announcement scheduled for later this month. The company estimates profits of $8.33 billion (9.5 trillion won), up nearly $2 billion over Q1’s $6.4 billion profit.
Reuters reports, however that this number was less than the 10.16 trillion won South Korean Analysts were expecting, which they blame on slowed momentum in Samsung’s smartphone division.
“The slowdown in its handset business appears to be worse than expected and the disappointing result simply reindorses the market view that Samsung’s smartphone growth momentum is slowing,” said Lee Sei-chul, an analyst at Meritz Securities.
Samsung’s component division, however, showed solid growth in Q2.
“But it’s got the component side of the business, which is showing solid improvements, and new handset product lineups for the third quarter, so (overall) earnings are likely to grow again in the current quarter.”
Google released its earnings report from Q1 2013 today.
Notably, Google’s consolidated revenues increased 31% over Q1 2013 with $14 billion gross income.
“We had a very strong start to 2013, with $14.0 billion in revenue, up 31% year-on-year,” said Larry Page, CEO of Google. “We are working hard and investing in our products that aim to improve billions of people’s lives all around the world.”
Google reported $3.35 billion net revenue, which is nearly half a billion up from $2.89 billion during the same quarter last year.
The company reports $50 billion in the back at the end of Q1 2013.
Cash – As of March 31, 2013, cash, cash equivalents, and marketable securities were $50.1 billion.
The company’s effective tax rate came in low at 8% following a tax credit mandated by legislature in Congress.
Income Taxes – Our effective tax rate was 8% for the first quarter of 2013.
Google CEO Larry Page mentioned during the conference call to investors that the company’s opportunities primarily exist in Chrome, YouTube, and Android, in that order. It believes more “connected TV’s” will allow the company to directly connect with consumers via relevant advertising more easily.
The company had praise for its marketing team, citing doubling its retail foot print thanks to more availability of its Chromebook in Best Buy.
Google discussed its success with commercial advertising via YouTube, announcing 325,000 Super Bowls worth of ads have been consumed.
When asked about Andy Rubin’s responsibilities after being pulled from heading Android, Larry Page reiterated that the company has yet to make that announcement and had no plans to make news in that regard today.
Regarding Glass, Larry Page admitted the price tag for early adopters is certainly high, but stepped short of calling it a luxury price and stated the company wasn’t prepared to announce a consumer price tag.
Press release below:
While Samsung has conveniently left specific smartphone sales numbers out of its Q4 earnings release yesterday (as usual), today we get a look at the latest estimates for the quarter coming from research firms Strategy Analytics and IDC.
We know that Apple sold 47.8 million iPhones during the quarter, and today both research firms put Samsung just over 63 million units for Q4 2012. That means Samsung was able to capture 29 percent of the market last quarter (up from 36.2 million units and 22.5-percent of the market in the year ago quarter). Apple is of course a close second among the top five smartphone vendors with 21.8-percent—down slightly from the 23 percent it held in the same quarter last year. In Q4 2011, Apple and Samsung were neck and neck at about 23 percent of the market each.
The increasing market share for Apple, and especially Samsung, over the past year comes at the expense of Nokia. It experienced a drop from 16 percent to 5 percent of the market during the past year. Read more
HTC posted unaudited consolidated results for the fourth quarter of 2011 this morning. The numbers do not look good for Asia’s second-largest handset maker as net income fell 26 percent annually to $11 billion in New Taiwan currency, or approximately $364 million USD – its first quarterly profit decline in two years. Revenue for the quarter was NT$101,419 million, a 2.49 percent annual decline.
Unaudited operating income reached NT$12.98 billion, but net income after tax was NT$11.02 billion, which is slightly behind the NT$11.6 billion expected by 11 analysts polled by Bloomberg.
Shares fell 4.2 percent to a three-week low of NT$462 in Taipei trading as Citigroup cut both the 2012 and 2013 earnings estimates for the company by 19 percent each. Citigroup explained its decision with the expected market share losses to Apple and Samsung. Surely, the writing has been on the wall for HTC for some time (here and here). More information and another chart are featured right after the break.