Apple Sees Drop in Profit, Revenue as iPhone Sales Slump

Apple Sees Drop in Profit, Revenue as iPhone Sales Slump

Apple’s quarterly profit slumped on a widely expected drop in iPhone sales, but gains in services offered some optimism on the company’s efforts to curb dependence on its smartphone.

The company said Tuesday that profit fell 19 percent to $9 billion (roughly Rs. 60,134 crores) in the fiscal quarter ending September 24. Revenue fell nine percent to $46.9 billion (roughly Rs. 3,13,655 crores) from $51.5 billion (roughly Rs. 3,44,403 crores) a year earlier.

The results were largely in line with market forecasts and showed sales of the iPhone – Apple’s biggest revenue and profit driver – down five percent from a year ago to 45.5 million units.

The quarterly update only provided limited information on the reception of the newest iPhone models, the iPhone 7 and 7 Plus, which were released in early September, and was likely to benefit from the woes of rival Samsung, suffering from a massive recall of its flagship Galaxy Note 7 phone.

Analysts were expecting declines in iPhone sales with many smartphone markets saturated, a situation that has led Apple to focus on new products like the Apple Watch and services like mobile payments, Apple TV and streaming music.Chief executive Tim Cook welcomed what he called “our strong September quarter results,” saying they “cap a very successful fiscal 2016 for Apple.”

“We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record,” he said in a statement.

The world’s largest company by market value closed out its fiscal year ending September 24 with a net profit of $45.7 billion on revenues of $215.6 billion, both figures lower than the prior year.

Apple shares fell 2.7 percent in after-hours trade following the release.

“Previously, Apple was able to rely on strong sales of phones, tablets and computers to drive up revenue and profit across all geographies. This is no longer the case,” said Neil Saunders of the research firm Conlumino.

Still, Saunders noted that “Apple is being judged by its own incredibly high standards,” and that “even with the dips in growth it remains a phenomenally successful business that is far from running out of steam.”

More than device maker
Frank Gillett, a Forrester Research analyst, said the results show Apple is making progress in diversifying its mix of products and services as smartphone sales stagnate.

“The rise of services shows they’re more than a device maker,” Gillett said.

“It’s indicative of the depth of engagement of their customers.”

The more consumers use Apple applications and services, “the less likely they will switch to a rival,” Gillett said.

Apple’s results showed a six percent drop in iPad unit sales and a 14 percent decline in the number of Mac computers sold.

While iPhone sales accounted for more than half of revenues, services revenue grew to $6.3 billion as the company expanded services such as Apple Pay and its enterprise offerings.

In the key “Greater China” market, Apple said revenues were down 30 percent from a year to $8.8 billion. But the company noted a 10 percent rise in revenue from Japan and cited gains in other global markets.

Patrick Moorhead of Moor Insights & Strategy said Apple “met most expectations but didn’t have a great quarter” with sales of its main products lower.

“I’m suspecting there may have been availability issues on the iPhone 7 and Watch,” Moorhead said.

Still, Apple “had a banner quarter in services” which is a positive sign, according to the analyst.

“It’s important the investment community take a long view versus looking at short-term growth estimates as a knee-jerk Apple response would only work against the company and the stock price,” Moorhead said.

On a call with analysts, Cook declined to comment on what Apple has in the pipeline but did indicate the company was investing in “products in the development phase which have not yet reached the market.”

Asked to explain the sharp rise in research and development spending, Cook said, “We’re confidently investing in the future.”

Tags: Apple, Home Entertainment, Wearables, PC, Laptops, Internet, Apps, Tablets, Mobiles

Twitter to Share Ad Revenue on Videos by US Users

Twitter to Share Ad Revenue on Videos by US Users

Twitter to Share Ad Revenue on Videos by US Users
Twitter offers revenue sharing to media and entertainment compani
New program will offer video creators a 70 percent share of revenue
Users would also be allowed to share their videos on other platforms
Twitter Inc on Tuesday stepped up its battle to attract video talent to its platform, saying it will allow US users who upload a video to share in any advertising revenue it generates.

Twitter, Facebook, Snapchat and YouTube are all competing to keep or recruit top video talent as they seek to cash in on the wave of televison-style advertising that has been moving to the internet.

Twitter already offers revenue sharing to media and entertainment companies such as CBS Corp and the National Football League which post videos through its Amplify Publisher Program. That option will now be open to any Twitter user, Twitter said in a blog post.

YouTube has long offered its video stars a cut of revenue. Facebook, for its part, has ramped up its Live video product in recent months and paid a relatively small number of media companies and celebrities to generate video.

Facebook said it is testing ways to “create a sustainable, long-term monetisation model for live video that includes new and different ways of sharing revenue with some partners.”
Instagram and Snapchat also rely heavily on celebrities, who often have millions of followers, to encourage user engagement and growth by posting personal photos and videos.

Twitter’s new program will offer video creators a 70 percent share of revenue. YouTube, which is owned by Alphabet Inc’s Google, shares 55 percent of the ad revenue with content creators.

Twitter said individual users would also be allowed to share their videos on other platforms.

Under Chief Executive Jack Dorsey, the company has made a significant push into video, signing deals with several media companies and sports organizations to stream major events.

Twitter shares dipped 0.5 percent to close at $18.38 on the New York Stock Exchange on Tuesday.

© Thomson Reuters 2016

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Tags: Twitter, Facebook, Snapchat, YouTube, Apps, Social, Home Entertainment


Double Trouble For Twitter With Revenue and Stocks Down


Has the Twitter success story run its course? That’s the question being posed on Wall Street after Twitter reported disappointing revenue growth in the first quarter of 2016 recently.

In the first quarter, Twitter reported $595 million in revenue, well below the $607.8 million that analysts were expecting.

The company added 5 million users, but fell short of the growth that would allow it to steal the advertising thunder from rivals Google and Facebook.

“The concern that dismal user growth would eventually affect revenue growth is starting to show up in Twitter’s results,” observed Jitendra Waral, a senior analyst at Bloomberg Intelligence.

Twitter Reports Disappointing Revenue Growth

Soon after Twitter announced its first quarter results, shares dropped more than 12 percent.

It’s worth noting that the year has not started on a great note for the company. Last quarter, users declined for the first time.

The biggest concern right now is about the company’s user and sales growth since Twitter sliding stock plummeted more than 20 percent this year.

Like tech giant Apple, which has reported its first sales decline in 13 years, Twitter faces a tough challenge to convince Wall Street it’s still got what it takes to grow.

Competition for Ad Dollars Goes “Live”

To boost growth, Twitter says it will continue to focus on “live” broadcasts.

While speaking with analysts on Twitter’s live-video service, Periscope, Twitter CEO Jack Dorsey said, “We remain focused on improving our service to make it fast, simple and easy to use.”

Regaining the live content niche however, is not going to be easy for Twitter. Snapchat has seen massive success with its live stories, but the biggest challenge will come from Facebook. In the past few months, Facebook has announced a number of new features that threaten Twitter.

Facebook is also aggressively pushing live video by introducing Facebook Live that lets anyone with a verified account broadcast live.

Twitter, on its part, has made several changes to entice users and advertisers. But analysts feel the company is not moving fast enough to take on competition. “I just haven’t seen enough product improvements for an experience that’s just materially better than people have seen in the past, or appeals more to the mainstream,” Mark Mahaney, an analyst at RBC Capital Markets told Bloomberg.

But not all is lost for the social networking service. Twitter beat Verizon and Amazon earlier this month to win rights to stream 10 NFL games. Time will tell whether this opportunity will eventually give Twitter a touch down of its own.


Sony Lifts Revenue Target for Games, but Cuts Outlook for Image Sensors

Sony Lifts Revenue Target for Games, but Cuts Outlook for Image Sensors


  • Games business is set to be Sony’s biggest growth driver
  • The revenue target was lifted to JPY 1.8 trillion to JPY 1.9 trillion
  • Sony cut its outlook for image sensors on weakening demand for phones

Japan’s Sony Corp lifted its sales target for its games division in the next financial year on high hopes for its new virtual reality headset, but cut its outlook for image sensors on weakening demand for smartphones.

The diverging fortunes for the two businesses resulted in the electronics giant maintaining its operating profit target of JPY 500 billion ($4.9 billion) for the year beginning next April.

The games business is set to be Sony’s biggest growth driver, driven by strong console sales, a rise in subscribers to its gaming network as well as the new headset, which will be sold for $399, far less than the $599 price tag set by Facebook-owned Oculus Rift.

The revenue target was lifted to JPY 1.8 trillion to JPY 1.9 trillion ($17.6 billion to $18.6 billion) from 1.4 trillion to JPY 1.6 trillion.

But the sales outlook for Sony’s devices division which includes image sensors – a key product range for the company – was cut sharply on weaker demand for smartphones and on the cancellation of the development of high-end camera modules.

That range was lowered to JPY 1 trillion to 1.05 trillion versus a previous target of JPY 1.3 trillion to JPY 1.5 trillion.

© Thomson Reuters 2016

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Tags: Cameras, Gaming, Home Entertainment, Mobiles, Sony, Tablets, Wearables

AMD Forecasts forestall to revenue Decline on sturdy Chip call for, Licensing Deal

AMD Forecasts Stop to Revenue Decline on Strong Chip Demand, Licensing Deal

superior Micro devices Inc’s forecast implied that the struggling chipmaker ought to submit a marvel risein current zone revenue, ending a run of six quarters of declines, helped through sturdy call for for its chips and a brand new licensing deal.

AMD additionally reported a lower-than-expected drop in revenue for the 1/3 region in a row due, in part, to the licensing deal, helping ship the company‘s shares surging 21 percent in trading after the bell on Thursday.

The employer forecast 2darea sales might develop 15 percent, plus or minus three percentage, sequentially, which interprets to $928.1 million (more or less Rs. 6,174 crores) to $985.5 million (more or less Rs. 6,556 crores).

that implies revenue might be higher than the $942 million (more or less Rs. 6,266 crores) from a 12 months in advance. Analysts on average were anticipating sales to fall to $887.eight million (roughly Rs.five,906 crores), in line with Thomson Reuters I/B/E/S.

AMD said on Thursday it signed a $293 million (more or less Rs. 1,949 crores) settlement to license its processor generation to a joint venture it shaped with Tianjin Haiguang advanced era investment Co Ltd, an funding unit of the chinese Academy of Sciences.

The era will assist China produce its own server chips for datacenters, a market dominated by means ofIntel Corp, certainly one of AMD’s largest rivals in conjunction with Nvidia Corp.

“This deal is as a minimum one victory lap on monetizing its IP. I anticipate greater to come in the destiny,specially with GPUs (photograph processing gadgets),” Moor Insights & approach analyst Patrick Moorhead said.

AMD stated it expects the licensing deal to feature approximately $52 million to 2016 sales, with $7 million (more or less Rs. 46 crores) already recognized in contemporary first area.

leader executive Lisa Su said AMD’s sales would increase extra than usual on a sequential basis thisquarter because of robust demand for its pictures chips and semi-custom chips, designed to fit clientsunique wishes.

AMD is slated to deliver its Polaris GPUs inside the middle of the year, which it hopes will result in revenueincrease in 2016 after 2015 revenue declined 27.5 percent.

The organisation‘s first-sector sales fell 19.2 percent year-over-12 months, to $832 million (roughly Rs.five,535 crores), however beat analysts estimates of $818.2 million (more or less Rs. 5,443 crores).

net loss narrowed to $109 million (more or less Rs. 725 crores), or 14 cents in keeping with proportion, from $one hundred eighty million (roughly Rs. 1,197 crores), or 23 cents per percentage. with the exception of objects, AMD misplaced 12 cents in keeping with percentage. Analysts were waiting for alack of thirteen cents.

AMD’s shares had been up 21 percent at $three.17 in prolonged trading. that they had fallen eight.7 thisyear thru Thursday’s close, even as the broader semiconductor index had gained zero.6 percent.

© Thomson Reuters 2016

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Google to Delhi High Court: No Revenue Earned From Content Uploaded by Centre

Google to Delhi High Court: No Revenue Earned From Content Uploaded by Centre

Google India Pvt Ltd Monday told the Delhi High Court it has not earned any revenue out of the agreement with the government or any other monetary benefit from content uploaded under the deal.

The company also told a bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva it has no contractual relationship with the Centre regarding content uploaded by the Ministry of Information and Broadcasting on YouTube or any other of its sites.

The submissions were made on affidavit in response to the court’s query to it and Google Inc, on an earlier date, as to whether YouTube was generating revenue from contents uploaded by the government.

Google Inc, the parent company of Google Ireland which operates YouTube, in its affidavit stated that “no advertisements appear on the content owned by Ministry of Information and Broadcasting, Government of India and provided/uploaded on the YouTube platform by the ministry”.

The Centre, meanwhile, told the court that it has no “customised agreements” with Facebook, Twitter and WhatsApp.

There are no customised agreements with YouTube (Google) either, except the one (with Google Ireland/YouTube) mentioned above”.

This submission was made by the government in response to the court’s earlier query as to whether the ministry has any agreement with these social media entities.

The affidavits were filed in a PIL by former BJP leader K N Govindacharya raising questions on social media usage by the government.

Appearing for Govindacharya, advocate Virag Gupta told the court that Google Inc was “misleading and silent on the crucial issue of income generated by Google Ireland and if any revenue is shared with the Union of India”.

The bench, thereafter, sought an additional affidavit from Google Inc on whether it is making any money out of the content uploaded by ministry and listed the matter for further hearing on April 27.

On January 27, the government had filed the content licence agreement entered into with Google Ireland in 2013 regarding content put up on YouTube.

The government had earlier in an affidavit told the court that its media wing and IT departments were using social media sites like Facebook and Twitter by entering into standard agreements and not any formal or separate deals.

Gupta had told the court that as per contracts the government has with these companies, it was “transferring/ surrendering” all intellectual property rights of the data being uploaded.

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Tags: Apps, Facebook, Google, Google India, Internet, Twitter, WhatsApp, YouTube